I.

Introduction

Name of the Company;

Cadbury Dairy Milk

Address;
Uxbridge Business Park in Uxbridge, London Borough of Hillingdon, England

Form of Organization;
Corporation

Description of Business Operations;

Cadbury is a global manufacturer, marketer and distributor of branded

confectionery. The company’s confectionery business operates chocolate,
gum and sugar categories. The company along with its subsidiaries primarily
operates in the Eurozone, the US, Central and Southern America, Australia
and other parts of Asia Pacific. Chocolate business represents the biggest
business segment of the company with around 46% of the overall revenues
FY2008. The company’s chocolate business is carried out on a regional basis
according the tastes of the consumers in each market. The company
operates its business through four business segments namely: Britain,
Ireland, Middle East and Africa (BIMA), Americas, Europe, and Asia Pacific.
Britain and Ireland (B&I) is the largest business unit in the Group. The
company has strong market position in the UK (30% market share in
FY2008), and Ireland (42%).
The company’s main markets in Middle East and Africa include South Africa,
Botswana, Swaziland, Namibia, Kenya, Egypt, Lebanon, Morocco, Nigeria,
and Ghana. The company American business comprises the US, Canada and
Mexico, three of the largest confectionery markets in the world, and extends
through Central America and the Caribbean. The company also has its
operations in South American countries including Brazil, Argentina,
Venezuela, Colombia and Peru. The company is the leading player in South
America with a market share of nearly 20%, with core strengths in gum and
candy.
In Europe, the company has significant gum and candy businesses, with
strong gum market shares in the majority of Western Europe, Scandinavia,
Turkey and Russia. The company’s chocolate business is concentrated in
Poland, Russia and France.The company’s biggest European operating unit
is in France.
The company’s Asian businesses are concentrated in India, Malaysia,
Thailand and China. The company’s key brands in these regions include
Cadbury Dairy Milk, Bournvita, Halls, Eclairs/Choclairs, Clorets, and Dentyne.
In the Pacific regions the company’s operations are primarily located in
Australia, New Zealand and Japan. Cadbury has a leading position in
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Australia with an overall 30% market share. While in New Zealand, the
company holds a market share of around 41% in FY2008.

Target Market;

Cadbury brand’s Dairy Milk chocolates targets kids within the age group of 5
to 10 years (Cadburyworld.co.uk 2016). This is because, consumers of this
age group are expected to prefer chocolates than other confectionary and
best satisfy their needs. Over the years the target consumer groups of
Cadbury brand’s Diary Milk products has shifted from kids to adults that
includes all the family members those can celebrate any festival with these
chocolate products. The brand also targeted young generation who enjoy
celebrating occasions by purchasing chocolates but this also limited the
market segment for Dairy Milk product. For this reason Cadbury has
developed a campaign “Kuch Meetha Ho jaaye’ for creating its image as a
sweet that could target chocolate loving consumers of all age groups
(Cadbury Official website 2016).
Cadbury has targeted those consumers who celebrate special occasions by
gifting sweets in attractive packaging (Cadburyworld.co.uk 2016). For
attracting this target consumer group, premium packaging of Dairy Milk
chocolates is done and gift boxes with all dairy milk product ranges are made
available to its target consumers.

Organizational Chart;

The company does not have a specific organizational chart posted online.
However, as per the company, this is how the organization works internally.

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Company History;

Cadbury Dairy Milk is a brand of milk chocolate manufactured by Cadbury. It

was introduced in the United Kingdom in 1905 and now consists of a number
of products. Every product in the Dairy Milk line is made with exclusively milk
chocolate. In 2014, Dairy Milk was ranked the best-selling chocolate bar in
the UK.[1] It is manufactured and distributed by the Hershey Company in the
US under licence from Cadbury.[

In June 1905 in Birmingham, England, Cadbury made its first Dairy Milk bar,
with a higher proportion of milk than previous chocolate bars, and it became
the company's best-selling product by 1914. George Cadbury Junior,
responsible for the development of the bar, has said "All sorts of names were
suggested: Highland Milk, Jersey and Dairy Maid. But when a customer’s
daughter suggested Dairy Milk, the name stuck."[3] Fruit and Nut was
introduced as part of the Dairy Milk line in 1926, soon followed by Whole Nut
in 1930. By this point, Cadbury's was the brand leader in the United
Kingdom.[4] In 1928, Cadbury's introduced the "glass and a half" slogan to
accompany the Dairy Milk bar, to advertise the bar's higher milk content.[5]

In September 2012, Cadbury made the decision to change the shape of the
bar chunks to a more circular shape in order to reduce the weight. The bar
had not seen such a significant change in shape since 1905.
Since 2007 Cadbury had a trademark in the United Kingdom for the
distinctive purple colour (Pantone 2865C) of its chocolate bar wrappers,[6]
originally introduced in 1914 as a tribute to Queen Victoria.[7] In October
2013, however, an appeal by Nestlé succeeded in overturning that court
ruling.[8]

In July 2018, Cadbury announced it would launch a new Dairy Milk version
with 30% less sugar. The chief nutritionist of Public Health England, Dr Alison
Tedstone, said she was "pleased that Mondelez is the latest … name" to offer
"healthier" products.[9]

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II. Statement of the Problem

II.I Internal
1. It has been relatively high priced brand, which is turning the price
conscious customer away.
2. Cadbury offers a limited variety of products as opposed to other leading
competitive brands, e.g. Amul and Nestle that offer an array of products
like biscuits, dairy products, etc.
3. One of the major raw materials i.e. cocoa has to be imported, leading to
bunched imports and higher inventory.

II.II External
1. New brands are coming and existing brands are introducing new variants
to add up to an already overcrowded market.
2. Changing restrictions and rules from Government quality control boards
may result in pressure on the production of the company & cost increase
3. Health conscious people think that chocolates are bad for the health, thus,
it can affect the sales of the company.

III. SWOT Analysis

Strengths

Strong Distribution: Cadbury has identified needs of different market perfectly

and accordingly has set up strong distribution which has helped it gain strong
market share in urban as well as rural parts of various countries.
Cadbury’s support: Cadbury, being one of the largest confectionery
companies around the world, has a strong hold in many countries. It has set
up strong distribution channels around the world and has financial stability.
Strong Brand Loyalty: Dairy Milk is a part of an impulse buying industry,
confectionery. In such an industry, customers tend to switch brands at zero
cost and thus maintaining customer loyalty is difficult. But, Dairy Milk has
been able to maintain strong brand loyalty.
Strong Brand Recall: Dairy Milk is one of the most successful products of
Cadbury and has a very strong brand recall. People equate chocolate with
Dairy Milk, especially in areas where awareness of other brands is very low.
Strong Advertising: Dairy Milk has always positioned the brand as a family
product with specific importance to its target audience which is 10-25 years of
age.
Variety in offerings: Dairy Milk is present in 4 different variants which are
Chocolate, Fruit & Nut, Roast Almond and Crackle. This attracts a different
set of consumers and helps in increasing revenues.
High Number of SKUs: Dairy Milk has a high number of SKUs especially for
its chocolate version. In India, it has SKUs starting at Rs. 10 and ranges till
about Rs 200. This presents the high number of options and offerings for
different types of consumers and markets.

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Weaknesses

Because it is one of the most loved brands in chocolates, there are very few
weaknesses which Dairy milk has.
High Sugar Content: Cadbury Dairy Milk has very high sugar content, as per
food net India; Cadbury Dairy Milk had over 50% (w/w) sugar content. The
current trend globally is to move towards healthy products and thus this is a
weakness.
Lower cocoa content than the competition: Cadbury Dairy Milk has about
2.58% (w/w) of cocoa content which represents the intensity of chocolate in
the product. Other competitors like Amul and Schmitten had over 3% Cocoa
content.
Controversies: Cadbury has had to face its share of controversies. Cadbury’s
worm controversy in India had made a big impact on its brand credibility and
Cadbury had to put in a lot of marketing effort to be able to overcome that.
Such controversies affect the trust on the brand.

Opportunities

Low Sugar variant: Cadbury Dairy Milk can come out with products with low
sugar or zero sugar content considering the fact that health awareness is
increasing around the world and people are moving towards healthier
products.
Nutritional variant: Being in line with bringing out new variants, the market for
nutritional chocolate is emerging and Dairy Milk can come out with a variant
with high Nutrition content.
Continue market domination with high brand engagement and interesting
advertisement: Cadbury dominates various markets around the world in the
confectionery segment. Being an impulse market, it is very important to keep
engaging customers and roll out interesting advertisements.

Threats

Low Switching cost: Dairy Milk’s marketing expenses are higher considering
the low switching cost as it falls under the impulse buying category.
Competition: Dairy Milk has to compete with many brands around the world
like Lindt, Ferrero, Amul, Hershey’s and Schmitten etc. Such competition
reduces market share.
Increasing health awareness: With increasing health awareness around the
world, People are moving away from high fat containing products to healthy
products.

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IV. Solution

Cadbury is a brand which almost everyone knows. Even after completion of

more than 100 years, the brand is into hearts of many people & it also leaves
a significant mark amidst all the competition. Cadbury stands tall in food
product sector. Although, they also are facing several issues like the one they
encountered in 2003 where worms were found in their chocolates. This issue
has been already resolved but the company still needs to make sure that this
kind of issue won’t happen again in the future. Generally, Cadbury needs to
focus on making sure that they always address their internal and external
issues with sense of urgency.

V. Recommendations

Upon reviewing the SWOT analysis and analyzing the problems of the
company, Cadbury may consider the recommendations below;

 They can try introducing a variety of products just like its competitors
so that they can expand their market.
 If they do not want to lessen the price of their chocolates, perhaps they
can try to offer budget friendly bundles for customers who are concern
about their budget.
 They can offer chocolates with lesser sugar content for health
conscious customers.

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 References

 https://en.wikipedia.org/wiki/Cadbury_Dairy_Milk
 https://www.marketing91.com/swot-analysis-dairy-
milk/?fbclid=IwAR3ZQLHKLx5gJQos39Sjgr8qv9V5s1Bpq_IIJyamOuf_ckCfDN1uNhTxMqo
 https://pestleanalysis.com/pest-analysis-cadbury/
 https://www.ukessays.com/essays/marketing/business-description-and-market-analysis-for-
cadbury-marketing-essay.php