2. AGENDA
1. Introduction.
2. Vision
3. Mission
4. Swot Analysis (INTERNAL & EXTERNAL)
5. Porter five forces analysis:
6. Rivalry among the existing players (HIGH).
7. Entry of competitors (LOW).
8. Threat of substitutes ( Moderate)
9. Bargaining power of buyers (Moderate – High)
10. Bargaining power of buyers (Low)
11. Level of Rivalry
12. BCG Matrix
13. Conclusion.
3. Introduction
Cadbury is a British international confectionery
company owned by Mondelez International.
Cadbury is best known for it’s confectionery product’s
including the dairy milk chocolate , the Creme Egg, and
the Roses selection box .
Cadbury was established is Birmingham England
in1824, by John Cadbury who sold tea, coffee and
drinking chocolate.
The company is the second largest food company.
4. Vision
Cadbury vision Statement is 'Working together in create
brands people love’ .
Meet the nutrition needs of consumer of all age group.
To align with the core purpose , Cadbury India has
defined its vision as “life full of Cadbury and Cadbury
full of life”
5. Mission
“Cadbury means quality” this is our promise our
reputation is built upon quality, our commitment
to continuous improvement will ensure that our
promise is delivered.
“ Cadbury has itself as a company of fairness
and integrity which always attempts to operate
as a socially responsible business
7. Swot Analysis (INTERNAL)
Strengths
• Brand Name.
• Strong manufacturing competence,
established brand name and leader in innovation.
• Advantage, that it is totally focused on chocolate.
• Unique understanding of consumer.
• Large target market.
• Wide variant portfolio of product .
• Good advertising .
• Large target market.
Weakness
• The company is dependent on the confectionery
market, whereas other competitors e.g. Nestle have a
more diverse product portfolio • Availability of product .
• No Promotion campaign .
• Lack of penetration in the rural market .
• Relatively high priced brand .
• limited shelf life.
8. Swot Analysis (EXTERNAL)
Opportunities
• Sugar free category is the major opportunity.
• The chocolate market has seen one of the
greatest increases in the recent times.
• Untapped rural markets .
• Better product packaging and preservation.
Threats
• Increasing competition from international front.
• Social changes - Rising obesity and consumers
obsession with calories counting affecting
demand for core Cadbury products • Sweets as
substitutes
• New entrants
• Price war
9. Porter five forces analysis:
Porter five forces analysis is a framework to analyze level of competition within an industry
and business strategy development.
Threat of new entrant
Bargaining power
of Suppliers
Bargaining power
of Buyers
Threat of substitute
products or Service.
Rivalry among
existing
competitors.
10. Rivalry among the existing players
(HIGH)
• Many businesses are competing against Cadbury and planning to take over the supremacy
the company has for several years.
• Companies such as Nestle, Hershey’s, Ferrero etc. are Cadbury’s main rivals.
• Rivalry will always be strong among these companies because they sell from the same types of
stores and their products are similar in some respects.
11. Entry of competitors
(LOW)
• The entry of competitors will be difficult because there are
already well established companies within this market.
• These include, mars, nestle, Ferrero, Kraft, Hershey’s and
Lindt.
• This makes the barrier for entry very hard for another new
company to start.
• They need high initial capital requirements.
12. Threat of substitutes
( Moderate)
• Supermarkets tend to copycat popular chocolates (for example nestle Kit Kat) and
provide their own brand on the shelves at a cheaper price.
• Confectionary is brought for snacks and gifts. In this way, large no. of substitutes exists,
like chips, fruits, beverages, etc.
• Still chocolates scores higher than the substitutes as they are easy to preserve.
13. Bargaining power of buyers
(Moderate – High)
• Cadbury’s buyers are scattered all around the world and they are in billions.
• The increasing number of competitors that offers the same type of products at a lower cost
might be the cause of customer loyalty alteration.
• No switching cost for buyers.
14. Bargaining power of buyers
(Low)
• Large number of suppliers.
• Cadbury has higher bargaining power than its
suppliers.
• Cadbury can buy their raw materials for
cheaper and more in bulk than a medium sized
business could
15. Level of Rivalry
Main Competitors of Dairy Milk in INDIA are:
Mars
Hersheys
Nestle
Ferrero
Dove
Kinder
17. BCG Matrix
STAR: Cadbury had been able to generate a great of financial income from its chocolate unit. Some of its
high demand items are dairy milk brand. Therefore it can be regarded as a star for the company.
CASH COWS: In the contemporary confectionary industry. Cadbury has experienced stable financial
growth through Bournville brand which has created a better sales outlook for the company.
QUESTION MARK: Cadbury crème Eggs and Oreo cookies have not been able to create a strong
demand in the target market.
DOGS: One of the product manufactured by Cadbury Company is bubble gum. According to Manning
(2009), the sales of gum has dropped up to 2% which shows changing consumption of bubble gum in the
target market.
18. Conclusion:
• Cadbury is a well-established firm with customers spread in whole world.
• It is difficult for other firms to overcome its popularity.
• Economical distribution using proper supply chain management is necessity.
• Brand loyalty should be maintained.
