Cadbury is a prominent name in confectionary industry. It began its operation in 1824 in UK. Since then, Cadbury has expanded its business throughout the globe and operating in more than 60 countries. The company offers Chocolate, Gum and Candy brands which give pleasure to millions of people. Cadbury strives to be the biggest and best confectionary company in the world.
Target Market
Cadbury targets a wide range of consumers from children to adults of the age group 5 to 50 years. The main target of Cadbury mainly is children and youths since they are the chocolate lovers. Through their marketing campaigns, Cadbury tries its best to attract its targeted audience.
Industry Trend
Cadbury invests heavily Research and Development and launched its new research and development center at Bournville factory with new innovation labs, a pilot plant factory and a collaboration kitchen. It is a creative center for experimentation with new ideas and innovations. The confectionary market is growing around 5% per year. Cadbury is also growing fast in its emerging markets with 12% average growth over 5 years and 11% global market share.
Goals
Cadbury is leading company in beverage items and it wants to cater all segments of society. The company provides its items on various events or celebrations and it is giving its products from mini stores to departmental stores through their efficient distribution channels. The company offers diverse items, and it needs to give them in the market in various countries. The organization is aiming to cater global markets and introduce its products.
Strategies
Following are the strategies of Cadbury:
• Drive advantaged, consumer preferred brands
• Realize price and improve customer investment
• Create advantaged customer partnerships via total confectionery solutions
• Expand product platforms and strengthen route to market through partnership and acquisition
• Sharpen talent, diversity and inclusiveness agenda
• Leverage partnerships to streamline processes and reduce costs
Annual Marketing Budget
Cadbury has an ample amount of marketing budget and they spend heavily on marketing and promotional campaign. They also focus on digital and allocate a huge percentage of marketing budgets on different campaigns in order to attract their customers. Moreover, the company launches advertises seasonally to cater masses.
Marketing Mix
Product
Holding a strong brand image, Cadbury’s products reflect innovation, high quality and nutritional value. Some famous products in its portfolio are Dairy Milk, Bournville, Kit Kat, Five Star, Eclairs, Cadbury Delight, Oreo, etc. Cadbury possesses fun brand personality and targets the chocolate and beverage lovers. Packaging of the products is colorful to appeal the children, teenagers and young adults.
Price
Cadbury uses competitive pricing strategy as the quality of the products is high so the prices of Cadbury products are also high.
Place
Cadbury chooses effective distribution channel to place its products. The products of Cadbury are accessible in every super and hyper markets, retail outlets and convenience stores.
Promotion
Every promotional activity of Cadbury focuses on brand awareness, maintaining brand value and increasing sales. Cadbury also comes up with seasonal campaigns in order to push their products. Cadbury has also a presence in digital platforms such as Facebook, Snapchat, etc. to reach its target market. Moreover, it also strongly focuses on advertisement, sponsorships and BTL activities.
Competitors
Cadbury has an aggressive competition with Nestle, Mars, Ferrero and Hershey’s which are giving hard time to the company.
Strengths
• Strong brand name
• Premium quality brand
• Strong and effective R&D
• Effective distribution network
• Strong marketing and promotional campaign across the world.
Weakness
• Highly dependent on confectionery market
• High cost base when compared to other companies
• Little penetration in rural areas
• Company’s dependency on beverage and confectionary market whereas the competitors like Nestle has more diverse portfolio.