INTRODUCTION & BRAND HISTORY (Ana)

Hello and welcome... we are here to talk to you today about

Cadbury the brand. Due to the brands size we will not be able to
discuss all aspects of the brands personality; however we have
highlighted the aspects we feel are most important, in particular the
recent Kraft take over and the future of the brand.

Cadbury was established nearly 200 years ago in 1824 by John

Cadbury when he opened his first shop in Bull Stree Birmingham,
selling tea, coffee, and drinking chocolate. In 1831John Cadbury
became a manufacturer renting a small factory in Birmingham to
make cocoa and drinking chocolate. John held values of social
justice and equality which have been inherent to the company and
still maintained to this day.

In 1861 Richard and George Cadbury took over the business from
their father John who was unfortunately of poor health. Together the
Cadbury brothers launched Cocoa Essence after George bought a
revolutionary cocoa press from a Dutch manufacturer. As a result of
company expansion in 1879 George Cadbury finds Bournville, a
Greenfield site in the country side 4 miles outside Birmingham.
Traditionally Cadbury has always been known as a family company;
many of its employees were located in Bourneville and neighbouring
areas, such that it was known as ‘Cadburytown’. It was from here
that in 1897 Cadbury launched its first milk chocolate bar for eating.

In 1899 Cadbury becomes a private limited company, Cadbury

Brother Limited when Richard Cadbury dies. In 1905 the first
Cadbury Dairy Milk bar is launched to compete against the leading
Swiss milk Chocolate.

Cadburys first overseas factory is launch in Hobart Tasmania in

1921, this is soon followed by the opening of a second in New
Zealand in 1930. After the war Cadbury was quick to consolidate its
position, by expanding their range and keeping ahead of
competitors. Cadburys moved into TV advertising on the launch
night of Commercial television, September 22nd 1955 – they have
always strived to be at the fore-front of the confectionary industry.

In 1969 Cadburys merged with Schweppes. The aim was to give

better value for money, boost the Foods arm and gain the resources
to international markets.
The 1970’s saw a big increase in sales in the 1970s which were said
to be due to successful TV advertising campaigns.

1980 Dominic Cadbury takes control and immediately maeks the

company more competitive by introducing state of the art
production lines and streaming staff.
In 2003 Cadbury became the world’s number one confectionary
company after having bought Adams, the owner of chewing gum
brands including trident and stride. Today Cadbury has countries
worldwide including Australia, Africa, Japan and India.

KRAFT (Oliver)
Brand evolution
Brand value
CSR worries
Employer brand (outcry of workers – strong connection between
employees and the Cadbury brand)
Quote from Irene Rosenfeld

STRATEGY (Hannah)
Brand promise & value (CSR (Olympics) & brand loyalty)
Brand extension – continuing to introduce new products e.g. Dairy
milk bliss
Implementation – they pursue the use of new media as this has a
significant effect on customer advocacy (new word of mouth),
continuing with the current advertising strategy, which is a strength
we will be discussing next, implementing CSR such as Olympics &
Fair trade

STRENGTH (Joe)
Advertising – most watched video of 2009
Brand architecture – as a result of the umbrella brand if a new brand
extension fails it won’t harm the overall brand image – base for
brand expansion
Utilisation of new media – listened to facebook group about Wispa –
helping consumer relationship with brand
Brand identity- Packaging and logo – easy identification of products
in crowded marketplace. Brand stands out and over time customers
develop a bond with this identity.
Brand loyalty – salmonella scare (£20 million pound hit and loss of
1% market share, and Coronation Street stopped the sponsorship
for several months, not because they didn’t want to buy it, but that
they couldn’t, hard to dislodge a brand that has been a nation’s
favourite for over 150 years)
Brand essence (relationship between consumer and brand: nostalgia
– grown up with Cadbury)

WEAKNESSES (Nicole)
Changing consumer trends – dietary concerns – health conscious
Market performance – mature market – dependant on confectionary
market performance. Recent turbulence.
International experience- Mainly in UK market so if it were to
decline, competitors such as Mars and Nestle are more international
brands. More diverse portfolios.

FUTURE (Ana)
Since the recent Kraft takeover there has been a great deal of
conflict over the future of the brand which we know and love.

One of the key issues that is constantly being discussed is whether

Kraft will be able to maintain Cadburys current ethical stance. Many
people have questioned Krafts ability to maintain the Cadbury brand
promise. Cadbury has is already adopted an acute ethical position;
many of their products are now Fair Trade and they have also
recently involved themselves with the Make A Wish Foundation on
advent calendar stars. Many critics believe that in order for the
brand to continue being so successful Kraft need to ensure this
ethical standpoint is maintained, failure to do so could result in loss
of customers, who may choose to move to other brands who uphold
these ethical values.

Whilst in the Cadbury guest lecture a couple of weeks ago Dominic

Cadbury highlighted internal brand engagement as a key element of
Cadbury’s future. He stressed how import it is that Kraft reconnect
with the employees, especially those who are unhappy and do not
necessarily agree with the recent developments that have taken
place. Cadbury employees used to be a major strength to the brand
and the company; Kraft need to recognise the importance of the
Cadbury employees and keep them satisfied in order to prevent
internal collapse of the brand.

Furthermore Kraft need to ensure they maintain Cadbury’s brand

essence. Up until the recent takeover Cadburys has always been a
family brand and it is imperative that Kraft maintain this customer
relationship as a result of nostalgia etc.

CONCLUSION (Ana)
To conclude it is possible to suggest that Kraft must work hard to
maintain brand strategy after takeover as a result of strong
emotional attachment that the public and employees have with the
Cadbury brand which key strengths have always been both its
internal and external relationship.