Cadburys Swot and Pestle

Topics: Chocolate, Cadbury plc, Confectionery Pages: 7 (1316 words) Published: February 28, 2011
SWOT analysis


Cadbury has a strong manufacturing competence, established brand name and a leader in innovation. People trust the company and support the brand.

Cadbury’s is fully focused on chocolate, candy, and chewing gum, with a unique understanding of consumer in the segments. This allow Cadburys to be able to put all efforts and resources into just this area, concentrating all R&D and marketing here and not using money in other areas.

Ability to respond to the market needs, so can adapt products to sell better

Strong ethical approach, social responsibility is seen as strong giving the company positive brand recognition.

Cadburys have growth in emerging markets, like India. Cadburys understands the markets and are able to penetrate these markets before other companies like Mars and Nestle. They are now dealing in over 60 countries so they have a strong understanding of the different cultures.

Recognised advertising campaigns e.g. Gorilla advert and eyebrow advert. People are talking about Cadburys giving them greater brand recognition.

Diversity of products (chocolate, chewing gum, drinks (until 2008) and Cadburys world) - not having all their eggs in one basket.

Cadburys look after their staff therefore staff stay loyal to Cadbury and become more motivated and driven to work for Cadburys. Cadburys also encourage their staff to bring forward new ideas, like the flake, which will further motivate their staff as they know that they are being listened too.


Dependant on confectionary market, which could decrease due to the Government health kick, whereas other companies like Nestle have a more diverse product portfolio.

Controversial takeover by Kraft- could damage the Cadbury’s name

Entering new markets (international) requires huge investment; Cadburys may not have the funds to support existing products, marketing R&D after the investments they put into new markets.

In 1970 they were at risk of becoming complacent (with regards to market needs), they thought they knew what the customers wanted and were carrying on without asking them, lack of market research.

Cadbury’s were significantly more expensive when Cocoa Essence was launched therefore reducing their chances of succeeding in the market place


New markets to explore especially emerging markets like China, Russia and India, where population is growing, consumer wealth is increasing and demand for confectionary products are increasing. Also with Kraft taking over they now have a chance to break into the USA markets.

Schweppes and Cadburys demerged in 2008 allowing Cadbury’s to put all efforts into Chocolate again.

George Cadbury Junior was asked to invent a new alkalised cocoa that would improve on van Houten’s (Cadbury’s Dairy Milk produced 1905)

Cost savings by moving production to low cost countries where raw materials and labour is cheap

Innovation is key driver. To respond to changes in consumer tastes and preferences – healthier snacks with lower calories need to be developed. R&D and product launches have led to sugar-free & centre filled chewing gum varieties and Cadbury premium indulgence treat. Low-fat organic and natural confectionary demand appears strong.

Environment – the chance to be seen as a environmentally friendly company. To show it is being socially responsible.

Economies of Scale, with the Kraft takeover it means that they may be able to reduce costs by buying in bulk due to the size of the company increasing.


Worldwide – There is an increasing demanding cost environment, particularly for energy, transport, packaging and sugar.

Competitive pressures from other suppliers (national and global). Aggressive price and promotion activity by competitors – may lead to price wars in established countries.

Social changes – the rise in obesity and consumers obsession with calorie counting, nutrition and healthier lifestyles affecting...
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