SWOT Analysis of Cadbury Plc
This SWOT analysis considers Cadbury Plc, a global confectionary supplier and beloved brand that supplies consumers with chocolate, candy, and chewing gum. The company has been able to continue growing its market share but must consider where its strengths could be better served to leverage certain identifiable opportunities while knowing how its weaknesses are serving as barriers. Taken over by U.S. food company, Kraft, the confectionary company must also consider any perceived threats in the marketplace that may impact on its ability to grow further and achieve sustainable profitability in the long term. With numerous external economic, social, cultural and environmental factors to consider, Cadbury Plc has a lot to think about as it plans its short- and long-term strategy for the company.
- Cadbury is now part of a global food company that has the resources to further diversity the product offering under the Cadbury brand and introduce it to new markets.
- There is strong brand recognition in the Cadbury's name tied mostly to its Easter egg products.
- The company is focused on a few types of products within the same consumer segment, which helps it to focus on quality and consistency. However, it is using those products as the basis to introduce new flavours and seasonal products.
- It has efficient manufacturing processes focused on innovation and technology.
- The company is attuned to marketing in new ways, including a comprehensive digital and social media component that is helping it to spread brand recognition and engage with its target audience.
- The fact that the company does have a limited product portfolio can also be considered negative when compared to the competition that has a more diverse product line beyond the confectionery and beverage market, which help build loyalty with consumers that want a brand that offers them more variety.
- There is less brand recognition of Cadburys in markets outside of Europe, so the company will have to do considerably more to attract attention of consumers than other brands like Nestle has to do in places like the United States.
- Some perceive the Kraft brand as having less quality while Cadburys has been viewed as a premium quality brand, so there is the possibility that some of this brand attribute may be diluted with its connection to Kraft as it was acquired by the global food company in 2010.
- The company faces increasing costs in all aspects of the supply chain, including energy for manufacturing, transport, raw materials and ingredients and packaging.
- Cadburys faces competitive pressure from other brands in the confectionary market, which has led to price wars and more aggressive marketing tactics.
- Environmental pressures demand that the company be transparent in its activities and present information on its corporate social responsibility initiatives to ensure environmental awareness, fair trade for cocoa, and equitable treatment of all employees around the world. Cadburys will need to be more specific in what it is doing or it may lose brand equity.
- Social changes, including issues with diabetes, obesity, and other health issues, are being attributed to processed foods like chocolate products. There may be a lower demand for Cadburys products tied to a global push for better eating habits and a healthy lifestyle.
- One of the largest opportunities for Cadburys is the availability of new markets that are demanding western products. This includes such emerging markets as China, Russia, India where populations continue to grow, disposable incomes are increasing, and consumers are able to access so much more information through social media sites about western products.
- As part of Kraft, the company can take advantage of the R&D resources to develop more unique products and potentially expand into other food and beverage segments as more consumers get to know the Cadburys brand as part of the Kraft family. This could include addressing some of the social threats by offering innovative new healthy snacks that are lower in calories as well as sugar-free products. Other areas of interest that appear to have some opportunity with low-fat, natural, and organic chocolate products.
- As part of this larger food company, Cadburys has the opportunity to lower its cost structure as it expands to emerging economies, including India and China, in terms of sourcing and procurement of ingredients, labour, and manufacturing processes.
- Cadburys may also have the opportunity to partner with other brands in the Kraft family to introduce some unique products whilst saving costs through shared resources.
- The company can also leverage the corporate social responsibility initiatives of Kraft to become a market leader in environmental awareness, including looking at innovative ways to change its manufacturing, sourcing, and packaging processes as well as illustrating a fair wage in the emerging countries where it has opportunities to open up new facilities.
- Cadbury's may also consider the opportunity of offering luxury or boutique lines of confectionary goods as the wealthy consumer segment is looking for exclusive and unique products. This could further elevate the brand reputation of Cadburys despite being linked to Kraft, which is often viewed as a mid-quality brand.