Cadbury Today

This page looks at Cadbury today. We bring together research from key whitepapers and our experience at Cadbury World.

Cadbury History

In 1824 John Cadbury opened his first shop in Bull Street, Birmingham. In 1831 Cadbury moved into manufacturing and as early as 1842 a price list reveals a range of products to choose from, it was also in the mid 1800s that Cadbury received a royal warrant for the quality of their chocolate.

The introduction of Cadbury Dairy Milk  in 1901 (along with Bourneville) saw a dramatic period of growth with production extending overseas and becoming one of the UKs biggest brands. The post-war period continued to see growth and reorganisation as Cadbury’s merged with Schweppes. It was during this period that TV advertising was coming to the forefront.

From the 1980s to date the company continues to hold a strong share of the confectionary market and has championed ethical and health considerations.

(http://www.cadbury.co.uk/cadburyandchocolate/ourstory/Pages/ourstoryFlash.aspx#)

Cadbury Take-Over by Kraft

Cadbury was brought out by Kraft Foods (US Company) in January 2010 for $19 billion. Kraft brought with them Milka (their equivalent of Dairy Milk), currently Milka is a recognised brand in mainland Europe, however this has led to concern from within the company about Milka cannabilising Dairy Milk sales. Without the loyalty to Cadbury’s, Kraft has no obligation to promote Dairy Milk over Milka.

The take-over was wrought with concerns, particularly when Kraft went back on their agreement and closed a Cadbury factory in Hillingdon at the expense of 400 jobs (http://www.hillingdontimes.co.uk/uk_national_news/4997730.Kraft_reverses_Cadbury_factory_vow/). Despite Kraft releasing statements to calm fears there past behaviour hasn’t conjured up much trust with the potential loss of the historic bourneville factory being a key concern for workers.

If Kraft doesn’t bury the iconic Cadbury brand first, Cadbury could become lost in the giant of Kraft and lose the respect and loyalty it currently has with UK consumers.

http://www.dailymail.co.uk/news/article-1275526/Cadbury-owner-plugs-inferior-Milka-bar-chocolate-lovers-say-Krafty-sideline-Dairy-Milk.html

Cadbury Today

Cadbury still retains it’s historic brand and thanks to highly effective advertising campaigns (pint and a half productions) has remained at the forefront of peoples minds. However there is concern that premium chocolates are eating into the Cadbury Dairy Milk market share and with a health and environmentally concious society the sweet milky chocolate is under threat. To stop the product reaching maturity the product and brand strength needs to be continually revised and re-inforced. In the global market of today Cadbury also faces greater competition, including from it’s new parent company Kraft.

In 2007 Cadbury held 10.5% of the Global Confectionary Market, however with large companies focussing on emerging markets like India we are likely to see a dramatic shift in market shares and how chocolate is consumed in the UK.

To get an understanding of where Cadbury is positioned as a company we built on a basic SWOT analysis (www.warc.com):

(Euromonitor International – PowerPoint)

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