SWOT ANALYSIS

OF CADBURY

SUBMITTED TO:
PRESENTED BY: MR.VIRAG SHAH
SARIKA SHAH
COMPANY
OVERVIEW
Merged with Schweppes in 1969. Currently, this
successful company is employing approximately about
43,000 people worldwide. Today, Cadbury Schweppes is the
world's fourth biggest supplier of chocolate and sugar
confectionery.
One of its products, Dairy Milk was introduced in 1905,
and has become the most successful moulded chocolate in
UK history and the basic ingredient for many other
Cadbury products. 95 years later, Dairy Milk is one of
the world's most famous brand names and the company's
leading chocolate bar by revenue.
Sales from Cadbury's Dairy Milk alone are estimated at
over £135 million for 1995. Cadbury considers its
success is based on three factors: quality, value for
money and good advertising.
Aim : Apply SWOT analysis to Cadbury’s current
situation and its position to enter a foreign
market
It is important to investigate on the internal
and external environmental forces for the
Dairy Milk in France. Relevant organizational
and industrial information is required for the
development of a SWOT analysis. The analysis
of the environment and the consideration of
the situational factors when designing
marketing planning, is critical as it would
allow Dairy Milk to capitalize on
organizational strengths, minimize any
weaknesses, exploit market opportunities and
avoid any threats.
SWOT
ANALYSIS
 Swot analysis of Cadburys
Strengths
Cadbury would realize several possible advantages in going
abroad. By penetrating a foreign market the company could:
• Maintain a stable growth of a company by maximizing the use of
its production capacity and thus increase economies of scale and
scope.
• With its brand name, Cadbury could counterattack the
competitors it faces in the domestic market by attacking their
domestic market.
• Keep up with the financial strength by increasing its sales
and profit, indeed the foreign market could present higher
profit opportunities than the domestic products.
• Acquisition rules in UK, reduce its dependence on the UK market
and therefore diversify its market specific risks.
• Overall , Cadbury has been successful through the new products
(development ) it has to offer.
Weaknesses
Generally, as Cadbury has a weak position in the US market, thus,
need to change its target to a different location. Besides its
lack of distribution network, it also has a small total of
market share altogether. Therefore in order to market the
product in France successfully, Cadbury would have to find out
on how it can improve in order to have great performance. It is
also good to find out what are the situations that they could
avoid in order to be successful. In order to market products the
following issues should be considered:
• Total French production of chocolate bars and confectionary ,
which has increased by 24.5 per cent between 1988 and 1991, has
slowed down in more recent years, partly due to the economic
slump.
• Consumption of chocolate products , which has been growing until
1991, remained fairly static in 1992, reflecting a fall in demand
due to the gloomy economic situation.
• Sales of milk chocolate bars, which account for 24 per cent by
volume of total sales of chocolate bars, decreased by 3.7 per
cent.
Opportunities
Through its confectionary product line, least to mention is to
build viable positions in prioritized markets through organic
growth and acquisition. Besides what is mention above, Cadbury
has other opportunities to have market development in Russia and
China. The Timeout Candy Bar market is growing worldwide. This
company is also at the same time distributing its products via
the internet – Develop Gourmet Line. Besides developing the “Low
Calorie” line of chocolates and sweets, they also offer the
“Sugar Free” sweets line. This has thus opened a completely
Cadbury world in US.
Therefore in order to get the product into a new foreign market,
France, Cadbury would have good opportunities in store for them.
Opportunities are as follows:
• In terms of political issues, France is an advanced
parliamentary democracy and politically is highly stable. The
political power is centralized in the parliament, the Prime
Minister and the President. The country specific risk is
negligible. France is a member of the European Community and has
excellent relations with the UK.
• E co n o m ica lly , Fra n ce h a s th e fo u rth la rg e st G ro ss
D o m e stic Pro d u ct in th e w o rld . It is a first- w o rld
a d va n ce d m a rke t b a se d e co n o m y. D e sp ite a re ce n t
re ce ssio n , its e co n o m y is ve ry stro n g a n d a lso h ig h ly
d e re g u la te d in lin e w ith E u ro p e a n U n io n p o licie s.
Fra n ce re p re se n ts a ve ry la rg e p o te n tia lm a rke t w ith
a h ig h sta n d a rd o f livin g a n d p u rch a sin g p o w e r. T h e
e co n o m y is h ig h ly o p e n in te rn a tio n a lly a n d co n d u cts
a h ig h p e rce n ta g e o f tra d e w ith in its E u ro p e a n
p a rtn e rs.
• With regards to itssocial situation, France has a
b ro a d ly ce n tra l/ so u th e rn E u ro p e a n cu ltu re w h ich h a s
m a n y sim ila ritie s w ith th e U K . H o w e ve r cu ltu ra l
d iffe re n ce s d o exist a n d th e se m u st b e co n sid e re d
w h e n p la n n in g fo r th e m a rke t.
• France has a high technological level and a lotof
in d u strie s a re b a se d in th e te ch n o lo g ica lse cto r. T h is
te ch n o lo g ica l b a se co n stitu te s o n e o f Fra n ce ’ s
co m p e titive a d va n ta g e s.
Threats
Due to its confectionary products, it is very
important for Cadbury to be aware of any present or
upcoming threats. The company should take note of the
changes in the consumer’s buying trend. It is perceived
that consumers might shift from chocolates to
“Healthy” snacks. If this were to happen, there might
be a poor product development which would tarnish the
Cadbury’s name. Needless to say price wars would occur
between its competitors like Mars, Hershey and Nestle.
Due to the abovementioned, there would be seasonal
sales slumps all year round which will reflect to an
increase in cost of the raw materials needed. Cadbury
would then have to be prepared for growth of small
local gourmet chocolates and regional candy
manufacturers.
BCG Matrix for Bharti Airtel
Stars ?
HIGH

Retail
Insurance
Mobile Services
DTH & IPTV

Broad Band
Cows Dogs
• Fixed Line Services
•

•
•

•
LOW

HIGH LOW

Market
GROUP 7 Share 11
PORTER FIVE FORCES MODEL of amul
(1)Threat of new entrants is high because there are
no entry barriers.
(2)threat of substitute is high because of
availability of other products.
(3)bargaining power of customers is high because of
various competitors
(4)competitive rivarly is high due to other brands
and local players.
(5)bargaining power of suppliers is low because the
suppliers are rural milk producers.