Xavier Business School

Prof.

Ruchita Burman

Project on Strategic Management

GROUP - 1

Kunal Singh - 34 Anjali Poddar – 33 Shreya Das- 12 Atif Hussain- 08

Acknowledgment

We would like to express our special thanks and our gratitude to our Professor and guide Dr Ruchita
Burman who gave us the golden opportunity to do this wonderful project on the topic Strategic Analysis of
Cadbury, India, which also helped us to do a lot of Research and during the process we came to know how
strategies make or break any business.

Introduction
 SWOT
SWOT analysis i.e., strengths, weaknesses, opportunities, and threats analysis is a structure used to
evaluate a company’s competitive position and to develop strategic planning. SWOT analysis
evaluates internal and external factors, as well as current and future potential. It is designed to
facilitate a realistic, fact-based, data-driven look at the strengths and weaknesses of an organization,
initiatives, or within its industry. The organization needs to keep the analysis accurate by avoiding pre-
conceived beliefs or gray areas and instead focusing on real-life contexts.

Analysts shows a SWOT analysis as a square segmented into four quadrants, each being an element of
SWOT. This arrangement provides a quick review of the company’s position. Each segment represents
key insights into the balance of opportunities and threats, advantages and disadvantages, and so forth.
Then following are the four segments of SWOT -
Strengths
Strengths describe what an organization excels at and what separates it from the competition: a strong
brand, loyal customer base, a strong balance sheet, unique technology, and so on. For example, a
hedge fund may have developed a proprietary trading strategy that returns market-beating results. It
must then decide how to use those results to attract new investors.

Weaknesses
Weaknesses stop an organization from performing at its optimum level. They are areas where the
business needs to improve to remain competitive: a weak brand, higher-than-average turnover, high
levels of debt, an inadequate supply chain, or lack of capital.

Opportunities
Opportunities refer to favourable external factors that could give an organization a competitive
advantage. For example, if a country cuts tariffs, a car manufacturer can export its cars into a new
market, increasing sales and market share.

Threats
Threats refer to factors that can harm an organization. For example, a drought is a threat to a wheat-
producing company, as it may destroy or reduce the crop yield. Other common threats include things
like rising costs for materials, increasing competition, tight labour supply, etc.

Summary of the SWOT Table

Strengths
1. What is our competitive Weaknesses
advantage? 1. Where can we improve?
2. What resources do we have? 2. What products are underperforming?
3. What products are performing 3. Where are we lacking resources?
well?

Threats Opportunities
1. What new regulations threaten 1. What technology can we use to improve
operations? operations?
2. What do our competitors do
2. Can we expand our core operations?
well?
3. What new market segments can we
3. What consumer trends threaten
explore?
business?

How to Use a SWOT Analysis

Internal
What occurs within the company serves as a great source of information for the strengths and
weaknesses categories of the SWOT analysis. Examples of internal factors include financial and
human resources, tangible, and intangible assets, and operational efficiencies.

Probable questions to list internal factors is:

 (Strength) What are we doing well?

 (Strength) What is our strongest asset?
 (Weakness) What are our detractors?
 (Weakness) What are our lowest-performing product lines?

External
What happens outside of the company is equally as important to the success of a company as internal
factors. External influences, such as monetary policies, market changes, and access to suppliers, are
categories to pull from to create a list of opportunities and weaknesses.

Potential questions to list external factors are:

 (Opportunity) What trends are evident in the marketplace?

 (Opportunity) What demographics are we not targeting?
 (Threat) How many competitors exist, and what is their market share.
The logical step before any SWOT Analysis is to screen the environment both internal and external in nature
to Cadbury India. We see a rise of lactose intolerant and diabetic patients in the world. The same is true for
India as well. Cadbury to address this issue came up with products with low sugar content. Notwithstanding
the effects here, the swot analysis is as follows:

 Strengths

Cadbury is one of the most reputed and topmost

chocolate providers and is a well-known brand.
Cadbury is not only famous among kids/children
but also among the adults as well. Cadbury India
has a
market share of 70 % (Source:
businessmapsofIndia). It is obvious that the
competitive rivalry be it high or less is nowhere
near cannibalizing the sales of Cadbury yet. This in
turn brings the need of dividing the market share of
Cadbury product wise as seen in figure alongside.
At 54% stands the most commonly bought product and often used as a substitute word for “chocolate” i.e.
Dairy Milk. Surprisingly, 5-Star comes in second (but is it surprising?). Cadbury has been focusing on 5-
stars advertisements effort a lot lately. The tag “Do nothing” can be called a true successor of the previous
“Jo Khaye, Kho Jaye” which was first introduced before 2010. Next up is Perk giving a close competition
to 5- star. Though both are chocolates in ground level, one is a caramel based chocolate and the other is
wafer based. The competition then goes forward to addressing the tastes and preferences existing in the
market. Moving forward, one would say that celebrations is not performing well at 2% of the 70% in total.
But that’s not true. Celebrations as a product is festival and gifts with a special occasion surrounding it.
Therefore, it seeks to target a niche segment and therefore is priced higher than all the products mentioned
here. Cadbury’s audience (including non-users) have a positive perception about the brand. This can be
attributed to the strong marketing and distribution channel. The other strengths of Cadbury are that they
have priced their varied range of products in an established market keeping the Indian Mindset into
consideration.
 Weakness

The major weakness for Cadbury

is the growing health
consciousness of the Indian
consumers. Sugar in all sense If
taken too much is harmful and
nothing can refute this. The only
way Cadbury can cope with this
is to change the ingredients of
their products (which is highly
unlikely they’ll do, because a
company will not alter the
product which is the major
player) or it can go for product
develop
and come up with low sugar chocolates. The need has been brought because of
various initiatives to make the Indian consumers aware of the health. In a report
from US – Wall street Journal, India tops the list for most Male Deaths from
Diabetes. The other weakness for Cadbury is the low presence in the rural areas
which is being addressed by Mondelez after recognizing the potential.

 Opportunities

There is a continuous increase in the chocolate market (almost @ 30%) and for
any company be it a market leader or a player at the bottom, a continuous increase
is an opportunity for all. The next opportunity is the prevalence of Cadbury
celebrations in India with the rise in its acceptance. India is a country with a mix
of religions celebrating different festivals. From Holi to Eid, Cadbury celebrations
is suited for all occasions when spending time with family or gifting friends. The
last visible opportunity stems from the weakness i.e. the rural market. Rural
market is yet to develop a taste for chocolates and Cadbury can pin this up as their
primary goal

 Threats
The major threat to a market leader of any industry are threats thwarting them of
that lead position. In this instance the threats to Cadbury are:

- Low
Brand FORM OF CHOCOLATES
HardCrunchyNuttiesChew
loyalty
in the
6%
chocolat
19%
e market
(seen in 48%

the
27%
recent
years)
- Entrance
of new
brands
stemmin
g from
the
weaknes
s above
- Preference and availability of other
substitut
es
includin
g
different
forms of
chocolat
e shown
alongsid
e.
 BCG Matrix of Cadbury India

A BCG matrix is a more focused approach while formulating any strategy. A

BCG shows the market standing of a product in relation to the market share and
the market growth. We see the BCG as follows:

HIGH LOW

- DAIRY MILK - PERK

HIGH - GEMS

- 5 STAR - TEMPTATIONS
-LOW
ECLAIRS - BUBALOO
- BORNVILLE

On the Y axis we have the market growth and in the X axis we have the market
share. Two possible situations for both the variables are high or low. Analysis
reveals the situations as above giving us the 4 possible scenarios. The scenarios
are as follows:

 STAR: High Market share, High Market Growth: One of the greatest
strengths of Cadbury is their flagship product here in India – Dairy Milk.
The commonly sold product priced at Rs 10 defined what chocolate is in
the Indian Market. The star here signifies the star performer among the
product line in the arsenal of Cadbury.
 QUESTION MARK/PROBLEM CHILD: Low Market share, High
Market Growth: The products in this scenario are perk and gems with
rivals KitKat against Perk and M&Ms, Skittles (by Mars) against gems.
The goal of the company would be to convert the dogs to star and then
successively into cash cow and not let them slip into dog.
CASH COW: High Market Share, Low Market Growth: 5 star and eclairs are running in a
saturated market where the growth has slowed down,

SWOT OR BCG FOR CADBURY

SWOT ANALYSIS IS BETTER -

SWOT-analysis helps the company to recognize both threats and opportunities

that they need to be aware of. It has the potential to uncover profitable business
opportunities the company would not have known otherwise. By undergoing
SWOT analysis, CADBURY will higher contend in their industries whereas
passing on edges like lower prices and better-quality service to their customers.
SWOT additionally helps to play as a defines. Yet measures weaknesses or
vulnerabilities that competitors could illustrate, which could prevent customers
from bending the businesses of the company. Knowing limitations helps the
company prepare a compelling disapproval strategy that focuses on strengths,
and offsets weaknesses. Threat’s area unit factors that might prevent the
company’s ability to stabilize or grow the company moving forward. projected
government laws that mandate pricey utilization and renewal programs that may
negatively impact your ability to contend on value would be a threat. With a
SWOT analysis, the company can make a way to address the new laws instead
proactively or strategically of waiting till some extent of desperation.
CADBURY is one of the leading brands within the FMCG sector with
heterogeneous products and services, strategic business units, as well as fast-
moving goods, hotel business, paper and packaging, and agribusiness. It also
has e-Croupal kiosks reaching over approximately 10 million milk producers,
CSR activity, and sustainability initiatives, and this has enhanced CADBURY
brand image.
TOWS examines a company's threats and external opportunities and compares
them to the firm's strengths and weaknesses. This analysis forms the idea to
develop TOWS strategies and decision making. The TOWS analysis is an
extension of the SWOT analysis framework. In SWOT, the company identifies
all the strengths, weaknesses, opportunities, and threats in point form, from a
singular perspective. But in the TOWS matrix company identifies relationships
between these factors and selects strategies on this basis. Combining a SWOT
analysis with TOWS ways offers little and huge businesses the inspiration they
must create their firms and move forward. Therefore, SWOT analysis is very
beneficial and practical for the company, as it helps the company decide
whether an objective is reachable. It assists the organization to set achievable
goals, objectives, and steps needed to implement changes to the company. It
helps identify gaps in the market and either take advantage of the or re-evaluate
the company’s position based on identified or emerging trends.
 Recognition of the weaknesses and threats is the first step to countering
them with a robust and creative set of strengths and opportunities. A
SWOT analysis identifies your strengths, weaknesses, opportunities, and
threats to help you in creating strategic plans and selections.

 SWOT is a simple yet comprehensive way of assessing the positive and

negative forces, so the company can be better prepared to act effectively.

 Whatever courses of action Cadbury decides on, the four-cornered SWOT

analysis prompts the company to move in a balanced way throughout.

 A SWOT analysis is most helpful as it supports the vision, mission, and

objectives that have been already defined by the company.