cadbury beverages case study

Cadbury Crisis Management Case Study: Preserving Trust in Times of Crisis

In the realm of beloved chocolate brands, Cadbury has long held a cherished place in the hearts and taste buds of consumers worldwide.

However, even the most esteemed companies are not immune to crises that can pose significant threats to their reputation.

Effective crisis management becomes paramount in such moments, serving as the linchpin in preserving brand equity and consumer trust.

In this blog post, we delve into the realm of Cadbury’s crisis management, exploring a notable incident that tested the brand’s resilience and examining the strategies they employed to navigate the storm.

By understanding Cadbury’s response and the lessons gleaned from their experience, we can gain valuable insights into crisis management in the food industry and the critical importance of safeguarding brand reputation.

The Cadbury crisis: an overview 

In October 2003, just a month before the festive season of Diwali, customers in Mumbai reported the discovery of worms in Cadbury Dairy Milk chocolates. Responding promptly, the Maharashtra Food and Drug Administration (FDA) took action by seizing chocolate stocks produced at Cadbury’s Pune plant.

Cadbury defended itself by stating that the infestation could not have occurred during the manufacturing process and suggested that poor storage at retailers might have been the cause of the reported worm cases.

However, the FDA remained unconvinced. Uttam Khobragade, the FDA commissioner, expressed doubts, stating, “While it was presumed that worms entered the chocolates during storage, what about the packaging? If the packaging was not proper or airtight, it could be considered a manufacturing defect due to unhygienic conditions or improper packaging.”

This exchange of allegations and counter-allegations between Cadbury and the FDA led to negative publicity that significantly impacted Cadbury’s sales. During a time when Cadbury typically experiences a 15% sales boost due to festive season demand, their sales dropped by 30%. As a result, Cadbury’s advertising went off air for a month and a half following Diwali, as consumers seemed to lose interest in their chocolate cravings.

Facing intense scrutiny, Cadbury took action by launching an education initiative called “Vishwa’s” in October itself. This initiative aimed to educate 190,000 retailers in key states. However, it was what Cadbury did in January 2004 that truly helped restore the brand’s reputation.

Investing around Rs 15 crore (Rs 150 million), Cadbury revamped the packaging of Dairy Milk by introducing imported machinery. The new metallic poly-flow packaging, despite being costlier by 10-15%, did not lead to a price increase for the product.

Bharat Puri, managing director of Cadbury’s India, stated, “Although we are addressing a few bars out of the 30 million we sell every month, we believe that as a responsible company, consumers should have complete faith in our products. So, even if it requires significant investment and change, we must not let consumer confidence erode.”

Simultaneously, Cadbury enlisted the support of brand ambassador Amitabh Bachchan for extensive endorsement, with the actor risking his personal reputation for the brand.

Cadbury also increased advertising spending for the January to March quarter by more than 15%. The brand’s recovery began in May 2004, and by June, Cadbury claimed that consumer confidence had been restored. Experts believe that Cadbury’s success was due to their proactive and direct approach in addressing the crisis. Moreover, consumers were more forgiving because of the emotional connection they had with the brand in India.

Explanation of the potential impact on Cadbury’s reputation and consumer trust

The potential impact of the crisis on Cadbury’s reputation and consumer trust cannot be overstated. Cadbury had spent years cultivating a strong brand image built on trust, quality, and indulgence.

Consumers who had long associated Cadbury with delightful moments and safe indulgence were suddenly confronted with doubts and concerns about the integrity of the brand.

The presence of foreign objects in their beloved chocolate bars not only raised immediate health and safety worries but also shook the trust that consumers had placed in Cadbury’s manufacturing processes.

The crisis threatened to erode the emotional connection between Cadbury and its customers, potentially leading to long-lasting damage to the brand’s reputation and a loss of consumer loyalty. The way Cadbury handled the crisis would be critical in determining whether they could restore faith in their products and reassure customers that their commitment to quality and safety remained unwavering.

Cadbury’s Response: Swift and Transparent Action 

Here are three points that explain the response of Cadbury to the crisis:

A. Immediate actions taken by Cadbury to address the crisis

Recognizing the urgency of the situation, Cadbury swiftly sprang into action to address the crisis and mitigate its impact on consumer trust. Their response was marked by a combination of transparency, accountability, and proactive measures. First and foremost, Cadbury initiated an immediate recall of the affected products from the market, demonstrating their commitment to ensuring consumer safety.

This recall was accompanied by clear and concise public announcements, both through traditional media channels and online platforms, informing consumers about the issue and advising them to refrain from consuming the affected products.

Cadbury launched an internal investigation in collaboration with independent third-party experts. This step aimed to determine how the foreign objects had made their way into the production process and identify any potential lapses in quality control.

In addition to the recall and investigation, Cadbury established a dedicated consumer helpline and email contact to address any concerns or inquiries from customers. This direct line of communication allowed affected individuals to seek information and assistance, demonstrating Cadbury’s commitment to maintaining open dialogue with their consumer base.

Moreover, Cadbury proactively engaged with regulatory bodies, such as food safety authorities and government agencies, to ensure compliance with relevant regulations and collaborate on resolving the crisis. This collaboration helped in conducting thorough investigations, sharing information, and implementing corrective measures.

Throughout their response, Cadbury remained transparent, providing regular updates to the public and stakeholders on the progress made in resolving the crisis. By openly acknowledging the issue and taking swift action, Cadbury aimed to rebuild consumer trust and demonstrate their commitment to the highest standards of product safety and quality.

B. Emphasis on transparency, open communication, and acknowledgement of the issue

Cadbury recognized the critical role of transparency, open communication, and sincere acknowledgement in their crisis management strategy. Understanding that silence or evasion could further erode consumer trust, they chose a different path.

From the onset, Cadbury openly acknowledged the issue, taking full responsibility for the presence of foreign objects in their products. They did not attempt to downplay or minimize the severity of the situation, but rather acknowledged the potential risks and concerns that consumers may have.

To ensure transparent communication, Cadbury provided regular updates to the public and stakeholders about the progress of their investigations, steps taken to address the issue, and any findings or developments. This transparency helped to build confidence among consumers that Cadbury was actively working to rectify the situation and prevent similar incidents in the future.

Moreover, Cadbury prioritized open communication channels with their consumers. They promptly established a dedicated helpline and email contact to address individual inquiries and concerns. By providing accessible means for consumers to voice their questions or fears, Cadbury demonstrated a commitment to engaging in two-way communication and actively listening to their customers.

Engagement with customers, media, and regulatory bodies

Cadbury demonstrated proactive engagement with various stakeholders throughout the crisis, including customers, media, and regulatory bodies. Here are some examples of their efforts:

• Customers: Cadbury promptly set up a dedicated helpline and email contact to address customer inquiries, concerns, and feedback. This direct line of communication allowed affected individuals to seek information, share their experiences, and receive assistance from Cadbury’s customer service team.
• Media: Cadbury issued press releases and media statements to communicate their response to the crisis, including the immediate recall, investigation, and measures being implemented to ensure product safety. These official statements aimed to provide accurate information and address media inquiries promptly.
• Regulatory bodies: Cadbury collaborated closely with relevant food safety authorities and regulatory bodies to ensure compliance with regulations and to share information regarding the crisis. This collaboration helped in conducting thorough investigations and implementing appropriate corrective actions.

Evaluation of Cadbury’s crisis management approach and its effectiveness

Cadbury’s crisis management approach can be evaluated as highly effective based on several key factors:

• Swift and proactive response: Cadbury’s immediate actions, including the recall of affected products and launching an internal investigation, demonstrated a sense of urgency and a commitment to addressing the crisis promptly. This swift response helped contain the situation and prevent further harm to consumers.
• Transparency and open communication: Cadbury’s emphasis on transparency and open communication was commendable. They openly acknowledged the issue, took responsibility, and provided regular updates to the public, customers, media, and regulatory bodies. This transparency fostered trust and allowed stakeholders to stay informed throughout the crisis.
• Stakeholder engagement: Cadbury actively engaged with stakeholders such as customers, media, and regulatory bodies. They established a dedicated helpline and email contact for customers, responded to media inquiries, and collaborated with regulatory authorities. This proactive engagement demonstrated a commitment to listening, addressing concerns, and working collaboratively to resolve the crisis.
• Accountability and commitment to quality: By taking responsibility for the contamination incident, Cadbury showed accountability for the lapse in their manufacturing processes. They acknowledged the potential harm caused to consumers and reassured them of their commitment to maintaining the highest standards of quality and safety.
• Learning and improvement: Cadbury’s crisis management approach also involved conducting internal investigations, collaborating with third-party experts, and implementing corrective measures. This commitment to learning from the incident and making necessary improvements indicated a proactive approach to preventing future occurrences and continuously enhancing product safety.

Identification of key lessons and best practices for crisis management in the food industry

Identification of key lessons and best practices for crisis management in the food industry:

• Prioritize consumer safety: The primary focus during a crisis in the food industry should be on ensuring consumer safety. Swift actions, such as recalls and investigations, must be taken to address any potential risks and protect consumers from harm.
• Transparency and open communication: Transparency is crucial in maintaining trust during a crisis. Companies should openly acknowledge the issue, provide timely and accurate information to stakeholders, and communicate updates regularly. This includes engaging with customers, media, and regulatory bodies to address concerns and share progress.
• Swift response and proactive measures: Time is of the essence in crisis management. Acting swiftly to contain the issue, launching investigations, and implementing corrective actions demonstrate a commitment to resolving the crisis effectively and minimizing its impact.
• Establish a dedicated crisis management team: Having a designated crisis management team with clear roles and responsibilities is essential. This team should be equipped to handle crisis situations, make quick decisions, and coordinate communication across various channels.
• Collaborate with stakeholders: Engage with relevant stakeholders, including customers, media, and regulatory bodies. Collaborating with regulatory authorities ensures compliance and regulatory support, while open communication with customers and media helps address concerns, provide accurate information, and rebuild trust.
• Learn from the crisis: Conduct thorough investigations to identify the root cause of the crisis. This allows for improvements in manufacturing processes, quality control measures, and overall safety protocols to prevent similar incidents in the future. Continuously learning and adapting based on the crisis experience is vital.
• Preparedness through crisis simulations: Conducting crisis simulations and drills in advance can help organizations prepare for potential crises. These simulations allow teams to practice their response strategies, identify gaps, and refine their crisis management plans.
• Monitor and respond to social media : Social media plays a significant role in crisis communication. Monitor social media platforms to gauge public sentiment, address customer concerns, and promptly respond to queries or complaints.
• Maintain brand consistency: During a crisis, it is essential to maintain consistency in messaging and actions across all communication channels. This consistency helps in building trust and avoiding confusion among stakeholders.
• Rebuild trust through actions: Regaining consumer trust takes time. Implement measures to enhance product safety, quality control, and quality assurance processes. Launch consumer-centric initiatives and communicate these actions to demonstrate the brand’s commitment to customer satisfaction and safety.

Final Words 

Cadbury’s crisis management approach serves as an excellent example of effective strategies and best practices in the food industry. By swiftly addressing the crisis, prioritizing consumer safety, and embracing transparency, Cadbury demonstrated their commitment to their customers and their brand integrity.

The lessons learned from Cadbury’s crisis management are applicable to any organization in the food industry. Prioritizing consumer safety should always be the guiding principle, followed by open communication with stakeholders and a proactive approach to resolving the issue.

Remember, a crisis can be an opportunity to showcase a company’s resilience and commitment to its customers. By implementing these best practices and being prepared, organizations can navigate crises with greater confidence, protect their brand reputation, and rebuild trust even in the face of adversity.

About The Author

Tahir Abbas

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Cadbury Marketing Strategy 2024: A Case Study

Cadbury, a renowned confectionery brand, has been delighting chocolate lovers for nearly two centuries. With a journey that began in 1824 in Birmingham, England, Cadbury has established itself as a pioneer in the industry. Their commitment to high-quality products and innovative marketing strategies has propelled them to the forefront of the market.

One of the key elements of Cadbury’s success is their strong brand identity. From the introduction of their first chocolate bar in 1849 to their diverse product mix, which includes iconic brands like Bournville, Eclairs, Oreo, Perk, and Dairy Milk Silk, Cadbury has consistently catered to every sweet tooth.

Moreover, Cadbury’s marketing strategy encompasses various components that contribute to their global reach. By utilizing advertising techniques across print, television, and social media platforms, Cadbury effectively engages with their target audience . They also sponsor events like music festivals and sporting competitions, forging emotional connections and fostering brand loyalty.

In addition to their promotional efforts, Cadbury offers sales promotions such as discounts, coupons, competitions, and seasonal offers, driving customer engagement and increasing sales. The company also invests in research and development to create new products and flavors, staying ahead of market trends and consumer preferences.

Cadbury’s commitment to expansion is evident through strategic collaborations and partnerships with celebrities, sports teams, and other brands. This enables them to extend their market reach and tap into new audiences.

With an impressive online presence, Cadbury leverages social media platforms to connect with their customers. Their Facebook page boasts 2,000,000 followers, Instagram has 500,000 followers, and Twitter has 150,000 followers. While they face competition from other chocolate brands, Cadbury’s marketing strategy allows them to maintain their market share of approximately 33% in the global chocolate confectionery market.

Looking ahead, Cadbury continues to invest in their operations, such as their plan to invest £15 million in their UK production facilities to increase efficiency and sustainability. They also respond to evolving consumer preferences, as demonstrated by their introduction of a new line of plant-based chocolate bars in early 2023 to cater to the growing demand for vegan and dairy-free products.

Furthermore, Cadbury’s partnerships with influential figures like British actor Idris Elba demonstrate their dedication to innovative advertising campaigns that capture the attention of their target audience.

Key Takeaways:

• Cadbury’s marketing strategy encompasses strong brand identity, diverse product mix, and engaging advertising techniques.
• They sponsor events and offer sales promotions to connect with their audience and drive customer engagement.
• Cadbury invests in research and development to create new products and flavors, staying ahead of market trends.
• Strategic collaborations and partnerships enable Cadbury to expand its market reach.
• Cadbury leverages social media to connect with customers and maintain a robust online presence.

The Strong Brand Identity of Cadbury

Cadbury, with its long-standing presence in the confectionery market for over a century, has successfully carved out a unique and strong brand identity. Through its unwavering commitment to delighting consumers, Cadbury has positioned itself as a brand synonymous with joy, happiness, and indulgence.

One of the key elements that contribute to Cadbury’s recognizable image in the market is its distinctive purple packaging, which stands out among competitors. The bold and vibrant purple color evokes a sense of excitement and has become synonymous with the brand. Additionally, the Cadbury logo, with its iconic design and bold typography, further enhances its brand recognition.

Cadbury’s brand identity is further reinforced through its emotional storytelling approach in their advertisements. Memorable campaigns like the Cadbury Dairy Milk “gorilla” ad and the “Joyville” campaign have struck a chord with consumers, evoking a sense of nostalgia and happiness. These emotionally engaging ads have not only created a lasting impact on consumers but also strengthened the brand’s connection with its audience.

In addition to traditional marketing channels , Cadbury actively engages with its audience on various social media platforms, building a vibrant online community and fostering brand loyalty. The brand’s active presence on Facebook, Twitter, and Instagram enables it to connect with consumers on a personal level, share relatable content, and listen to feedback.

Furthermore, Cadbury’s commitment to corporate social responsibility initiatives, such as Cocoa Life, showcases its dedication to ethical and sustainable practices. By supporting initiatives that focus on the welfare of cocoa farmers and promoting responsible sourcing, Cadbury enhances its reputation among socially conscious consumers.

Cadbury’s collaborations with popular brands like Oreo, Toblerone, and Daim have resulted in unique product variations, appealing to a broader consumer base. These strategic partnerships have not only expanded Cadbury’s product offerings but also strengthened its market position.

To cater to evolving consumer preferences, Cadbury frequently introduces new product extensions such as Cadbury Bitesize or Cadbury Darkmilk. These innovative offerings ensure that the brand stays relevant and meets the diverse needs of its customers.

With its extensive product range, global presence, and commitment to innovation, Cadbury has firmly established itself as a leader in the confectionery industry. The brand’s strong brand identity, built upon its recognizable logo, distinct packaging, emotional storytelling, and robust online presence, ensures that it remains a household name beloved by consumers around the world.

Diverse Product Mix for Every Sweet Tooth

Cadbury, with its rich history and legacy in the chocolate industry, offers a diverse product mix that caters to the varied tastes and preferences of consumers. From their iconic Cadbury Dairy Milk chocolate bars to a wide range of candies, gums, biscuits, and beverages, Cadbury has something for every sweet tooth.

Cadbury Dairy Milk, the cornerstone of their product lineup, has been a favorite amongst chocolate lovers for decades. Known for its creamy and delectable taste, it holds a special place in the hearts of consumers worldwide. In fact, the Dairy Milk brand alone accounts for a significant 40% share of the entire Indian chocolate market.

But Cadbury doesn’t stop at their classic offerings. They understand the need for constant innovation to stay ahead in the competitive market. Cadbury’s product innovation team works tirelessly to develop new flavors and products that cater to evolving consumer preferences.

One area where Cadbury shines is their festive offerings. Festivals like Diwali are an integral part of Indian culture, and Cadbury understands the importance of these occasions. They offer festive boxes of assorted Cadbury chocolate bars, beautifully packaged and perfect for gifting during these special celebrations.

Cadbury also recognizes the different market segments and demographics they cater to. For children between the ages of two and eight, Cadbury Bournvita is considered a must-have. This nutritious and delicious drink has become a household name, providing essential nutrients and energy to young ones.

For the millennial spenders and high-spending families, Cadbury offers luxury products like Cadbury Dairy Milk Silk, Temptations, and Bournville. These premium chocolates provide a unique and indulgent experience, making them popular choices for special occasions and gifts.

Cadbury’s commitment to quality is unwavering. They ensure that every chocolate bar that leaves their production centers maintains the same consistent taste that consumers have come to love. This dedication to relentless quality has helped Cadbury establish a strong position in the Indian chocolate market, accounting for two-thirds of all sales.

Furthermore, Cadbury embraces innovation when it comes to product development. They constantly introduce new and exciting variations, such as flaky chocolates, chocolates with bubbles, fruits, infusions, and even venturing into the realm of vegan products. Their ability to adapt and cater to changing consumer preferences has been a key factor in their continued success.

Cadbury products are widely distributed across both urban and rural areas in India. Consumers can find their favorite Cadbury chocolates at grocers, retail outlets, and even online platforms. Cadbury has embraced innovative ideas like home deliveries and gifting options to enhance customer experience and make their products easily accessible.

To summarize, Cadbury’s diverse product mix, ranging from classic favorites to innovative creations, ensures there is something for everyone with a sweet tooth. Their commitment to quality, relentless focus on innovation, and widespread distribution have solidified Cadbury’s position as a leader in the Indian chocolate market.

Carefully Balanced Pricing Strategy

Cadbury, operating in over 160 countries, understands the importance of implementing a well-thought-out pricing strategy to cater to a wide range of consumers. With a rich history spanning over a century, Cadbury has continuously evolved its pricing approach to meet changing market dynamics and consumer preferences.

One of the key components of Cadbury’s pricing strategy is skimming pricing. By offering premium products like Cadbury Silk at higher price points, the company positions itself as a luxurious treat for consumers seeking indulgence. This strategy allows Cadbury to capitalize on the value associated with its brand and the high-quality experience it delivers.

At the same time, Cadbury recognizes the importance of affordability and accessibility. With its iconic product, Dairy Milk, Cadbury adopts an economy pricing strategy, ensuring that it remains an accessible choice for a broad consumer base. This competitive pricing enables Cadbury to target mass-market customers and maintain a strong market presence as one of the leading confectionery brands globally.

During holidays and special occasions, Cadbury also leverages bundle pricing to provide additional value to consumers. By offering value packs and attractive discounts, Cadbury entices customers to purchase more products, ultimately boosting sales and enhancing brand loyalty.

Why a Carefully Balanced Pricing Strategy Matters

Cadbury’s carefully balanced pricing strategy plays a crucial role in appealing to the diverse preferences of its target audience. By offering a range of price points, Cadbury ensures that consumers with different budgets can enjoy their favorite Cadbury products. This flexibility allows the brand to maintain a strong position in the market while catering to the varying needs and desires of its customer base.

Furthermore, a well-structured pricing strategy is essential for Cadbury’s long-term success and sustainability. It helps the company optimize profitability, achieve market share, and effectively compete with industry rivals like Nestle.

Through its pricing strategy, Cadbury strikes a delicate balance between providing affordable options and catering to consumers’ desire for luxurious treats. This approach, combined with its commitment to quality, innovation, and product excellence, solidifies Cadbury’s position as a premium and trusted brand in the confectionery industry.

By implementing a carefully balanced pricing strategy, Cadbury ensures that it remains a sought-after brand, fulfilling the desires of chocolate lovers around the globe, regardless of their preferences and budget constraints.

Extensive Distribution Network

Cadbury’s global success can be attributed to its extensive distribution network, which allows its products to reach customers in over 50 countries. With a vast distribution network, Cadbury ensures that its diverse range of products, including chocolate bars and blocks, boxed chocolates, seasonal confections, snack-sized treats, beverages, biscuits and cakes, and dairy products, are readily available to consumers.

The company employs a multi-channel distribution strategy, selling its products through various retail outlets, including supermarkets, convenience stores, and grocery stores. This widespread presence in retail locations enables Cadbury to cater to a diverse customer base and reach consumers in both urban and rural areas.

In addition to traditional retail channels, Cadbury embraces e-commerce to meet the demands of the digital age. By offering online sales, Cadbury makes its products easily accessible to consumers who prefer the convenience of shopping from their homes. This online presence also allows the brand to expand its global reach and cater to customers beyond its physical distribution network.

Furthermore, Cadbury leverages partnerships with wholesalers, distributors, and vending machine operators to ensure wider product availability. These partnerships enable Cadbury to penetrate new markets and reach consumers in locations where traditional retail outlets may be limited.

The Cadbury distribution network extends beyond domestic borders, with exports to numerous countries. This global presence demonstrates the brand’s commitment to satisfying the sweet tooth of chocolate lovers worldwide.

In summary, Cadbury’s extensive distribution network is a key driver of its global success. By strategically utilizing a combination of retail outlets, online platforms, wholesale partnerships, vending machines, and exports, Cadbury ensures that its products are accessible to consumers in various markets and regions around the world.

Building Emotional Connection Through Advertising and PR

Cadbury understands the power of emotional connection in building strong relationships with consumers. Through their strategic advertising and public relations efforts, Cadbury aims to create a deep bond with chocolate lovers all around the world. By leveraging various channels and techniques, Cadbury successfully appeals to the hearts and minds of their target audience.

When it comes to advertising, Cadbury employs a diverse range of mediums, including print and television advertisements, to capture the attention of consumers. These advertisements are carefully crafted to evoke positive emotions and create a sense of joy and indulgence associated with Cadbury chocolates.

In addition to traditional advertising methods, Cadbury recognizes the importance of utilizing social media platforms to engage with their audience. By sharing mouthwatering images and captivating videos of their chocolates on platforms like Instagram and Facebook, Cadbury entices consumers and creates a desire for their products. This digital presence allows Cadbury to connect with their audience on a more personal level and build a community of loyal chocolate enthusiasts.

Public relations plays a crucial role in building Cadbury’s brand reputation and strengthening their emotional connection with consumers. Cadbury sponsors events like music festivals and sporting competitions, associating their brand with moments of joy and celebration. This strategic partnership enables Cadbury to connect with their target audience during memorable experiences, deepening their emotional connection.

Moreover, Cadbury’s commitment to corporate social responsibility is evident through their partnerships with NGOs and support for social causes. By aligning themselves with organizations that make a positive impact, Cadbury reinforces their values and creates a sense of trust and admiration among consumers.

Idomoo: Empowering Cadbury’s Personalized Video Campaigns

Cadbury’s Personalized Video campaigns have been highly successful in creating emotional connections with consumers. An essential component of these campaigns is Idomoo, a digital communication platform that has helped leading brands across industries with their personalized video marketing strategies. Idomoo’s technology enables Cadbury to deliver customized and engaging videos to their audience, further deepening the emotional bond between the brand and consumers.

Cadbury’s Global Reach and Impact

Cadbury’s efforts to build emotional connections with consumers extend beyond India and reach over 50 countries worldwide. With a presence in diverse markets, Cadbury employs nearly 50,000 people globally, emphasizing their commitment to providing delightful chocolate experiences to people from all walks of life.

In India, where Cadbury holds a significant market share, their goal was to increase market penetration for premium Cadbury Glow gift chocolate. The Cadbury campaign in India achieved an impressive 90% completion rate for the Personalized Video, and over 12% of viewers shared their video with friends on social media. These results showcase the success of Cadbury’s advertising efforts in creating emotional connections with Indian consumers.

Looking ahead, Cadbury has plans to expand their Personalized Video campaigns to global markets, starting with Singapore. This demonstrates their belief in the power of personalized marketing and the emotional impact it can have on consumers.

Overall, Cadbury’s strategic advertising and public relations initiatives play a crucial role in building emotional connections with consumers. By creating compelling and relatable content, Cadbury continues to delight chocolate lovers and foster a deep sense of loyalty and affection towards their brand.

Sales Promotion Strategies to Drive Customer Engagement

Cadbury, a renowned brand in the confectionery industry with a rich history dating back to the 19th century, understands the importance of sales promotion strategies in driving customer engagement and boosting sales. To captivate their audience, Cadbury leverages various promotional techniques, including discounts, competitions, and limited-time offers.

One of the most effective ways Cadbury entices customers is through discounts. They offer special deals and promotions, such as “buy one, get one free” or discounted bundle packs, which not only attract new customers but also encourage repeat purchases. By providing these enticing discounts, Cadbury creates a sense of urgency and exclusivity, making consumers feel like they’re getting a great deal.

In addition to discounts, Cadbury organizes competitions that engage and excite their target audience. These competitions allow consumers to participate and have a chance to win exciting prizes, adding an element of fun and interactivity to their marketing campaigns . By incorporating competitions in their sales promotions, Cadbury encourages customer participation, effectively increasing brand awareness and fostering brand loyalty.

Seasonal promotions are another way Cadbury captures customers’ attention. By aligning their promotions with holidays like Easter and Christmas, Cadbury creates anticipation and excitement among consumers. They launch limited-edition packaging, exclusive flavors, and unique gift options during these festive seasons, compelling customers to indulge in their delightful treats. These seasonal promotions not only drive sales but also create a sense of celebration and joy associated with the Cadbury brand.

Furthermore, Cadbury leverages digital marketing platforms to amplify their sales promotions. They run viral campaigns and collaborate with social media influencers to reach a wider audience. By leveraging the power of social media, Cadbury encourages customers to engage with their promotions and share them with their friends, effectively expanding their reach and driving organic growth.

With their strategic sales promotion initiatives, Cadbury attracts customers, boosts sales, and creates a lasting impression. By combining discounts, competitions, and innovative marketing campaigns, Cadbury continues to engage consumers and solidify their position as a leading player in the confectionery industry.

Commitment to Product Innovation and Research

Cadbury has built a reputation for its unwavering commitment to product innovation and continuous research and development. This dedication has been key to their success in the confectionery industry. Cadbury’s pursuit of excellence is reflected in their extensive range of delectable chocolates and confections that captivate consumers worldwide.

Since its debut in 1905 in the United Kingdom, Cadbury Dairy Milk Chocolate has become an iconic brand loved by millions. Recognized as the top-selling chocolate bar in the UK since 2014, Cadbury Dairy Milk continues to be a favorite among chocolate enthusiasts.

To stay ahead of the competition, Cadbury invests heavily in research and development. Their team of experts conducts thorough market research to analyze customer preferences, identify emerging trends, and study the evolving needs of consumers. This valuable insight enables Cadbury to develop new products that meet and exceed consumer expectations.

Cadbury’s research and development efforts go beyond just product innovation. They also explore innovative packaging solutions to enhance the consumer experience. By constantly experimenting with new ingredients, flavors, and packaging designs, Cadbury ensures that their chocolates remain fresh, exciting, and relevant in an ever-changing market.

One of Cadbury’s strengths lies in its ability to introduce limited-edition products, delighting consumers with unique flavors and seasonal variations. These limited-edition treats not only create a sense of exclusivity, but they also generate anticipation and boost sales. Cadbury’s commitment to innovation and product development ensures that customers are always excited about trying something new.

Furthermore, Cadbury leverages its deep understanding of consumer preferences to develop chocolates tailored to different occasions and preferences. Whether it’s a festive celebration, a special moment with loved ones, or a simple indulgence, Cadbury strives to provide a chocolate for every sweet tooth.

Evolving Chocolate Choices Despite Tradition

The evolving preferences of consumers have driven Cadbury to continually adapt and innovate. Cadbury recognizes the importance of staying relevant in a dynamic market and proactively adjusts its product offerings to meet changing consumer demands.

This dedication to innovation is not limited to their product range. Cadbury also embraces digital marketing platforms to engage with customers, utilizing social media campaigns to encourage participation and foster a sense of community. They understand that in today’s interconnected world, engaging with consumers on digital platforms is essential to maintaining brand relevance and establishing lasting connections.

Furthermore, Cadbury extends its commitment to product innovation beyond taste and packaging. The company is dedicated to sustainability and corporate social responsibility, ensuring that their products are responsibly sourced. By actively supporting employment, economic development, community growth, diversity promotion, and cultural influence, Cadbury positively impacts society while producing delicious chocolates.

Through their unwavering commitment to product innovation, research and development, Cadbury has solidified its position as a leading global confectionery brand. By continuously pushing the boundaries of creativity and delivering unforgettable chocolate experiences, Cadbury remains a staple in households worldwide.

Strategic Collaborations and Partnerships

Cadbury understands the power of collaborating with other brands to create innovative and exciting products that resonate with consumers. These strategic partnerships not only expand Cadbury’s market reach but also allow them to tap into new audiences and create unique offerings.

One example of Cadbury’s successful collaborations is their partnership with Grenade, a prominent sports nutrition brand. Together, they created a protein bar that combines the delicious taste of Cadbury with the nutritional benefits of Grenade, offering consumers a protein-packed treat.

Cadbury also joined forces with Oreo to develop the “Stay Home Stay Safe: At Home with Oreo” campaign during the pandemic. This collaboration aimed to provide comfort and joy to consumers during challenging times, reminding them of the importance of staying home and enjoying moments of sweetness.

In addition to brand collaborations, Cadbury leverages influencer partnerships to enhance their social media reach. By teaming up with popular personalities, Cadbury is able to create engaging and relatable content that resonates with their target audience.

Cadbury’s collaborations extend beyond the digital realm. They strategically partner with celebrities, sports teams, and other brands to create co-branded products and promotional campaigns. These partnerships not only boost brand awareness but also tap into the existing fan base of their collaborators.

By leveraging the reputation, influence, and following of their partners, Cadbury strengthens its brand presence and builds deeper connections with consumers. These collaborations not only drive sales but also create excitement and generate buzz around Cadbury’s products.

These strategic collaborations and partnerships allow Cadbury to stay relevant, maintain a competitive edge, and continue delighting consumers with exciting and innovative products.

Leveraging Social Media and Engaging Online Presence

In today’s digital landscape, social media has become an essential tool for brands to connect with their audience and build a strong online presence. Cadbury, with its rich heritage and innovative approach, understands the significance of leveraging social media platforms to engage with its consumers and foster a sense of community.

Cadbury’s social media strategy encompasses platforms like Instagram, Facebook, Twitter, and YouTube. By tailoring their content to suit each platform, Cadbury ensures that they reach a wider audience and stay relevant in the ever-evolving digital space.

One of the key factors contributing to Cadbury’s success on social media is their ability to create engaging and shareable content. Their posts feature stunning visuals that showcase their delectable products, including the Dairy Milk Silk range with flavors like Oreo, Red Velvet, Roast Almond, and Hazelnut, alongside other popular favorites like Oreo, Gems, and Perk.

Cadbury’s social media team capitalizes on the power of storytelling, using heartwarming narratives that celebrate joy, love, and togetherness. This emotional branding approach resonates with their audience, helping to forge a deep connection between the brand and the consumer.

The company actively engages with their followers by responding to comments and messages promptly. This interactive approach makes consumers feel valued and heard, further strengthening their bond with the brand.

Cadbury’s online presence extends beyond promotional content. They go the extra mile to offer behind-the-scenes glimpses, sneak peeks of upcoming releases, and exclusive access to events. By providing this insider perspective, Cadbury fosters a sense of exclusivity and excitement among their followers, keeping them eagerly anticipating new products and promotions.

Furthermore, Cadbury’s commitment to corporate social responsibility (CSR) is also reflected in their social media presence. Initiatives like the “Wrapper That Gives” campaign, which donated 1 GB of data to the Pratham Education Foundation from chocolate wrappers, strikes a chord with socially-conscious consumers and solidifies their connection with the brand.

With a diverse range of engaging content, a responsive approach to customer interaction, and a focus on giving back to the community, Cadbury has successfully established itself as a leader in the social media space within the food and drink industry. It comes as no surprise that they have been voted as the “top social media firm,” further highlighting the effectiveness of their approach to creating a welcoming and engaging brand image through their online presence.

Cadbury’s enduring success in the confectionery industry can be attributed to its well-crafted marketing strategy. With a strong brand identity and a diverse range of products, Cadbury has captured the hearts of consumers worldwide. Their carefully balanced pricing strategy caters to a wide range of consumers, making their products accessible to all. Through advertising, public relations, sales promotions, and social media marketing , Cadbury has effectively promoted its brand and products.

Innovation is at the core of Cadbury’s success. By continuously developing new and exciting products, they have remained ahead of the competition. Cadbury’s corporate social responsibility initiatives and strategic partnerships have also contributed to their industry leadership.

To sustain its position in the market, Cadbury must address the challenges of enhancing its virtual presence and expanding its online reach. With a well-crafted distribution network, Cadbury’s products are available globally, ensuring that chocolate lovers everywhere can indulge in their favorite treats. By engaging with the community through social media and interactive initiatives, Cadbury has built strong customer relationships and enhanced its reputation.

As Cadbury looks towards the future, their commitment to sustainability and fair trade will continue to be a driving force. With a rich heritage dating back to 1824, Cadbury’s iconic branding and innovative marketing strategies have made it a leader in the confectionery industry. Through seasonal campaigns, brand partnerships, and global localization strategies, Cadbury will maintain its position at the forefront of the industry.

What is Cadbury’s brand identity?

What products does cadbury offer, how does cadbury balance its pricing strategy, how does cadbury distribute its products, how does cadbury create an emotional connection with consumers, what sales promotion strategies does cadbury use, how does cadbury prioritize product innovation, does cadbury collaborate with other brands, how does cadbury leverage social media, what has been the key to cadbury’s enduring success, related posts:.

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Cadbury Beverages’ Strategic Issues Case Study

• To find inspiration for your paper and overcome writer’s block
• As a source of information (ensure proper referencing)
• As a template for you assignment

Strategic Problem and Issue Identification

Analysis and evaluation, recommendations, works cited.

Cadbury Beverages has been a successful marketer of different carbonated drinks. The company wanted to “re-launch its brands acquired from Procter & Gamble” (Kerin and Peterson 316). The Senior Marketing Executives (SMEs) focused on the Crush brand in order to emerge successful.

To begin with, it was mandatory to rejuvenate the brand’s bottling network. The company also analyzed the facts associated with its leading brands. It was also mandatory for the firm to establish a powerful advertising program for its Crush brand.

This advertising program “required the best strategies, objectives, and preliminary budgets” (Kerin and Peterson 316).

From 1985 to 1989, the Crush orange flavor had become less competitive. The company was using ineffective advertising strategies thus affecting its goals. In 1989, most of “the competitors were using a wider spectrum of avenues to advertise their superior brands” (Kerin and Peterson 324).

Many players in the industry were using similar promotional strategies for their products. It is agreeable that many consumers admired the Crush brand. However, new strategies were required in order to re-launch the product in the targeted markets. This approach would make it easier for Cadbury Beverages Incorporation to achieve its potentials.

The problems affecting Cadbury Beverages forced the Marketing Executives (MEs) to make new changes in 1990. To begin with, the MEs decided to focus on the Crush brand. The marketers wanted to make the brand successful. This approach was critical because the flavor accounted for two-thirds of the total sales.

A new bottling network for the brand was also established (Kerin and Peterson 319). The positioning strategy only focused on the existing customer base. New bottling agreements “were created in order to make the orange flavor available to more consumers” (Kerin and Peterson 320).

The level of competition also affected the performance of the Crush brand.

However, the above positioning strategy presented numerous threats to the other brands such as Sunkist. The strategy was also ineffective because the company was making little profits. The “existing competitors were also attracting more customers using their diet segments” (Kerin and Peterson 324).

There was also the need to establish new positions in order to make the brand successful. That being the case, it was appropriate to have a powerful advertising program that could make the brand successful.

It is notable that “the Crush brand boasted of high-awareness in different regions such as Boston, Miami, Seattle, San Francisco, New York, and Miami” (Kerin and Peterson 329). However, it was appropriate to create a powerful promotion program for the brand. Cadbury Beverages Incorporation should therefore have a proper budget for every promotional strategy. That being the case, the firm should use its resources to support the Crush brand. The firm should use appropriate marketing strategies in order to emerge successful because more customers are aware of this brand. A proper knowledge of the existing market conditions will produce the best strategies.

The firm should also identify new distribution channels. It should also collaborate with different restaurants and Gas Stations (GSs) in order to increase its market share. The use of modern technologies such as social media networks will inform more people about the targeted brand.

The firm should also use a powerful marketing mix. This approach will “ensure the firm uses competitive prices, strategic positions, and effective promotional practices” (Kerin and Peterson 18). The strategy will ensure the firm achieves its marketing goals.

Kerin, Roger, and Robert Peterson. Strategic Marketing Problems: Cases and Comments. Upper-Saddle River, NJ: Prentice Hall, 2009. Print.

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Bibliography

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Cadbury Marketing Strategy: A Case Study

• February 1, 2024

Cadbury marketing strategy – Cadbury , the renowned multinational confectionery brand, has been delighting chocolate lovers for nearly two centuries with its wide range of delectable treats. From the iconic Dairy Milk chocolate bars to biscuits, cakes, and beverages, Cadbury has established itself as a global leader in the confectionery industry. 

But what sets Cadbury apart from its competitors? It’s their carefully crafted and successful marketing strategy. In this article, we will explore the key ingredients that make up Cadbury marketing strategy recipe for sweet success.

Read More : 7 Coca Cola Marketing Strategy 2024 – A Case Study

The Origins of Cadbury: A Chocolate Revolution

Cadbury’s journey began in 1824 when Quaker John Cadbury started selling tea, coffee, and drinking chocolate in Birmingham, England. His passion for chocolate led him to create a heavenly chocolate drink that soon gained popularity. 

As the business grew, Cadbury expanded its offerings and started producing chocolate bars. With the introduction of their first chocolate bar in 1849, Cadbury began its chocolate revolution.

Building a Strong Brand Identity

Cadbury marketing strategy – One of the essential elements of Cadbury marketing strategy is its strong brand identity. The Cadbury logo, with its vibrant purple background and bold typography, represents the brand’s simplicity, accessibility, and timelessness. 

It instantly captures the attention of consumers and creates a sense of familiarity and trust. Cadbury has also introduced a limited-edition golden logo, symbolizing exclusivity and elegance for their premium products.

Product Mix: Catering to Every Sweet Tooth

Cadbury marketing strategy – Cadbury’s product mix is diverse, offering something for every sweet tooth. From their classic Dairy Milk bars to a wide range of candies, gums, biscuits, and beverages, Cadbury has a treat for everyone. 

They continuously innovate and develop new flavors and products to cater to different market segments and meet the rising tastes and preferences of consumers. Cadbury’s product range includes iconic brands like Bournville, Eclairs, Oreo, Perk, and Dairy Milk Silk.

Pricing Strategy: Balancing Affordability and Luxury

Cadbury’s pricing strategy is carefully balanced to cater to a wide range of consumers. They offer products at various price points, ensuring affordability for cost-conscious consumers while also providing luxury experiences for those willing to indulge. 

Cadbury employs different pricing strategies, including skimming pricing for premium products like Cadbury Silk and economy pricing for mass-market favorites like Dairy Milk. Bundle pricing is also utilized during holiday seasons to offer value packs and attract more customers.

Extensive Distribution Network: Reaching Every Corner

Cadbury marketing strategy – Cadbury’s extensive distribution network plays a vital role in its global success. With production facilities in multiple countries and sales offices in major cities, Cadbury ensures its products are available in urban and rural areas alike. 

Their chocolates can be found in supermarkets, corner shops, and grocers worldwide. Additionally, Cadbury embraces e-commerce, making its products easily accessible through online platforms. Wholesalers, distributors, and vending machines also contribute to Cadbury’s wide reach.

Promotion: Creating a Sweet Connection

Cadbury marketing strategy revolves around creating an emotional connection with consumers. They employ various advertising techniques to showcase their products, using print and television advertisements to capture the attention of chocolate lovers. 

Cadbury also leverages social media platforms to engage with their audience, sharing enticing images and videos of their chocolates. They run campaigns that evoke nostalgia, celebrate festivals, and promote sharing sweet moments with loved ones.

Public Relations and Sponsorships: Supporting Causes and Celebrations

In addition to traditional advertising, Cadbury utilizes public relations and sponsorships to build its brand reputation and connect with its target audience. They sponsor events like music festivals and sporting competitions, associating their brand with joyful experiences.

Cadbury has also partnered with NGOs to support social causes and recognize unsung heroes. By aligning with these initiatives, Cadbury reinforces its commitment to corporate social responsibility and strengthens its bond with consumers.

Sales Promotion: Tempting Customers with Sweet Deals

Cadbury marketing strategy – Cadbury employs various sales promotion strategies to entice customers and boost sales. They offer discounts, coupons, and competitions to create excitement and incentivize purchases. 

Special promotions like “buy one, get one free” and seasonal offers during holidays attract customers and encourage them to indulge in Cadbury’s delicious treats. These sales promotions not only drive sales but also create a sense of urgency and exclusivity.

Innovation and Research: Sweet Surprises for Every Occasion

Cadbury’s dedication to innovation and research ensures that they constantly surprise their customers with new products and flavors. Their research and development team is constantly experimenting with new ingredients and packaging to create unique and exciting chocolate experiences. 

Cadbury introduces limited-edition products to celebrate festivals and occasions, catering to the evolving tastes and preferences of their consumers.

Building Strong Partnerships: Collaborations for Success

Cadbury marketing strategy – Cadbury understands that success is not achieved alone. They forge partnerships with other businesses to expand their market reach and create unique offerings. 

Collaborations with celebrities, sports teams, and other brands help Cadbury tap into new audiences and create buzz around their products. 

By leveraging the reputation and influence of their partners, Cadbury strengthens its brand presence and builds stronger relationships with consumers.

Digital Marketing Strategy

In the digital age, Cadbury recognizes the importance of a strong online presence. They harness the power of social media platforms to engage with their audience and foster a sense of community. 

Cadbury’s social media accounts feature mouthwatering images, interactive campaigns, and behind-the-scenes glimpses, keeping their followers eagerly anticipating new releases and promotions. 

By actively responding to comments and messages, Cadbury ensures that their customers feel valued and connected.

International Expansion: Spreading Sweetness Worldwide

Cadbury marketing strategy – Cadbury’s global success can be attributed to its expansion into international markets. With production operations in multiple countries and products available in over 50 nations, Cadbury has become a household name worldwide. 

They adapt their marketing strategies to suit different cultural preferences and consumer behaviors, ensuring that their products resonate with local audiences. 

Cadbury’s international presence has helped them gain a diverse customer base and establish themselves as a leader in the confectionery industry.

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Cadbury marketing strategy is a carefully crafted recipe that has contributed to its enduring success. From building a strong brand identity to offering a diverse product mix, employing effective pricing strategies, and leveraging extensive distribution networks, Cadbury has created a sweet connection with consumers worldwide. 

Their promotional efforts, partnerships, and commitment to innovation further differentiate them from their competitors. With a strong online presence and international expansion, Cadbury continues to satisfy sweet tooths everywhere, spreading joy and sweetness one chocolate at a time.

Lydia Pricillia

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Complete Analysis on the Cadbury Marketing Strategy- A Case Study

By Aditya Shastri

Quick Read   Discover how Cadbury’s marketing strategy has solidified its position as a leading confectionery brand. This Cadbury case study delves into their innovative promotional tactics, digital marketing efforts, and strategic campaigns.

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Be honest – when you think of having something sweet, what’s the first chocolate that comes to mind? We bet it’s Cadbury! And this little fact shows just how powerful Cadbury’s marketing strategy really is.  When Indians think of ‘Kuch meetha ho jaye,’ Cadbury is the first brand that comes to mind.

In fact, for many Indians, the word ‘chocolate’ has been replaced by ‘Cadbury.’ Instead of asking, ‘Would you like some chocolate?’ people often say, ‘Would you like a Cadbury?’ This level of brand influence is a testament to Cadbury’s deep connection with its consumers.

Let’s dive into the Cadbury case study and explore how Cadbury has achieved this remarkable status.

About Cadbury

Source: Google

Founded in 1824 by John Cadbury in Birmingham, England, Cadbury has grown into one of the world’s largest confectionery brands. In this case study of Cadbury, we will understand how the company became the second-largest multinational confectionery company in the world after Mars. Known for its Dairy Milk chocolate, Cadbury’s mission is to spread joy through delicious treats. The brand has a rich heritage and is committed to quality, innovation, and sustainability.

Relevant Updated Statistics

Here are some of the latest statistics covered for better understanding.

• As of 2023, Cadbury’s parent company, Mondelez International, reported annual revenue of $28.7 billion [source: Mondelez International Annual Report 2023]
• Cadbury holds a market share of approximately 33% in the global chocolate confectionery market [source: Statista]
• Cadbury Dairy Milk is the leading chocolate brand in India with a 65% market share [source: Euromonitor]

As you keep reading on, you will understand how the company has set the stage for a deeper exploration in the upcoming case study of Cadbury.

What’s New With Cadbury

Here are the latest updates on Cadbury’s marketing strategy, focusing heavily on the marketing strategy of Dairy Milk to gain deeper insight into the brand.

Business News

Cadbury announced plans to invest £15 million in its UK production facilities to increase efficiency and sustainability.

Product Launch

In early 2023, Cadbury introduced a new line of plant-based chocolate bars, catering to the growing demand for vegan and dairy-free products.

Marketing News

Cadbury launched the ‘Donate Your Words’ campaign, encouraging people to engage in conversations to combat loneliness among the elderly.

Celebrity News

Cadbury partnered with British actor Idris Elba to promote its latest advertising campaign, focusing on spreading joy and kindness.

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Now, let’s move forward with our case study on Cadbury.

The company has evolved over the years in India and has included an array of quality products that have helped the company target loyal customers. So, let us understand its target audience by assessing it further in the coming section.

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Buyer Persona

Buyer’s Persona

Profession:

Web-Developer

• Seeking high-quality and trusted confectionery products
• Interested in enjoying and sharing moments of joy with family and friends
• Value innovation in flavours and product offerings

Interest & Hobbies

• Indulging in sweet treats and trying new chocolates
• Celebrating special occasions with loved ones
• Following food trends and exploring new confectionery products

Pain Points

• Concerns about sugar content and health impacts of consuming sweets
• Preference for sustainable and ethically sourced products
• The desire for more variety in low-calorie or sugar-free options

Social Media Presence

• Active on Instagram, Facebook, and Twitter
• Frequently shares and engages with content related to food, recipes, and celebrations

Cadbury uses this buyer persona to create marketing strategies that resonate with their audience’s motivations, interests, and pain points, ensuring their campaigns are both engaging and relevant.

Target Audience of Cadbury

To delve into the target audience details for Cadbury, we’ll focus on understanding their consumer demographics, preferences, and behaviours. Cadbury’s target audience typically includes:

Demographic Categorization

The company likes to experiment a lot when it comes to their packaging and taste. Kids are drawn to Cadbury products due to their colourful and eye-catching packaging. Wowie is such an example of this clever packaging that captivated children and drew them to the brand.

To target teenagers and young adults, Cadbury has trendy flavours and has introduced chocolates like Nutties, Silk, etc to cater for their needs and keep them glued to Cadbury.

Talking about adults and millennials, Cadbury’s exquisite range like Celebrations, Cadbury Temptations, Bournville, etc attracts this segment and satisfies their sweet cravings.

Geographic Categorization

With a stronghold in countries like the UK, Australia, India, South Africa, etc, Cadbury’s marketing strategy is to target now emerging countries like China, Poland and Brazil where the demand is rising for premium chocolates.

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Psychographic Categorisation

A key marketing strategy for Cadbury has been to link its chocolates with significant life events and celebrations, encouraging consumers to use Cadbury chocolates as a part of their festivities.

To make the brand diverse and inclusive to every customer, the brand has successfully included gluten-free and sugar-free chocolates in the marketing strategy of Cadbury like Cadbury Twirl, Bournville Orange, Creme Egg, etc to leave no stone unturned when capturing the market of chocolate lovers.

Let’s now proceed to explore the next aspect of Cadbury’s case study, that is, understanding the diverse marketing strategies employed by Cadbury to attain its profitable global position.

Cadbury’s Marketing Mix

As an iconic chocolate brand around the world, the marketing strategy of Cadbury includes a well-crafted marketing mix that assists the company in maintaining a strong brand identity, levelling up on market share and staying ahead of its competitors. Let’s understand the 4 Ps of Cadbury in detail.

Cadbury Case Study: Product

The product mix of Cadbury covers a diverse range of chocolates and other confectionery products that offer something sweet for every sweet craving. The cash cow of Cadbury, Dairy Milk holds a strong customer base and is famous for its smooth texture and super creamy taste. Let’s understand each aspect of Cadbury’s product mix in detail below:

Wide range of products : From classic to contemporary treats, Cadbury has it all. With a diverse product range, Cadbury has something or the other for each of its customers.

Signature Products : With unique products like Silk Oreo, Dairy Milk Crackle, etc, the company has unique flavours that attract consumers.

Festive and occasional delights : Gone are the days when only traditional sweets were used to celebrate any festival or joyous occasion. With the introduction of premium dry fruit chocolate boxes like the Cadbury Celebrations dry fruit range, the company has created a new category of users who can go for chocolates to celebrate auspicious occasions and milestones.

Continuous innovation : Even after being a prominent market leader with a good market share, the company aims to stay ahead of the game and evolve as the market demands. Cadbury has recently introduced Cadbury White Confetti, a milk chocolate for customers who prefer milk chocolates compared to cocoa chocolate bars.

Cadbury Case Study: Price

With a tempting variety of products, the company has strategically priced its chocolates. Cadbury aims to offer something to every segment of the society. The products are priced competitively and its premium range is slightly expensive to cater to its high-paying customers who are looking for luxury chocolates. Let’s get into the details:

Balanced pricing: Starting from a ₹1 Cadbury Eclairs to a premium bar of Bournville or a box of Celebrations, the company has a balanced price for all of its  products based on its production costs, market competition, and consumer preferences.

Different treats : Apart from delicious chocolates, Cadbury offers a range of cookies and beverages to cater to different segments of their customer base.

Pricing adaptation : The company evaluates its pricing strategy as and when needed. They aim to maintain the market position without making a hole in their consumers pockets.

Cadbury Case Study: Place

With a strong market hold, the company aims to provide delectable products to every nook and corner of the world. With production facilities available in countries like the UK, Poland, Russia, India, and Australia, the company focuses on maintaining the quality of the product and giving a hint of local flavours that keeps the consumers glued to the company.

Retail stops : Hands down, Cadbury has a robust network of supply systems. across retail outlets. One can easily find a bar of Cadbury chocolate in any retail outlet.

Wholesale Network : To ensure that Cadbury’s product reaches every nook and corner of the world, the company has a strong network of wholesalers who are responsible for the retailers in their area.

Direct sales: Apart from the wholesalers and retailers, the company has set up its own establishments and vending machines to serve its customers.

Cadbury Case Study: Promotion

Cadbury leaves no chance on the table when it comes to promoting its brand or being in the limelight. The company’s marketing mix uses various marketing channels like social media, public relations activities, etc, for marketing. Let’s understand each one of them in detail:

Out-of-Home Advertising : With a significant marketing budget, the company aims to be on top of consumer’s minds when they crave chocolate. To follow this, Cadbury has come up with creative ideas for promotion and uses out-of-home advertising heavily to showcase its products. You can refer to the image below for reference:

Use of Social Media : One of the biggest chocolate brands in the world knows how to keep up with the market. They understand the importance of an evolving marketing strategy and to maintain that, Cadbury is present on all the prominent social media platforms like Instagram, “X”, FaceBook, YouTube, etc.

Whether it’s a social media post or a TV commercial, the brand aims to build an emotional connection with its audience. Cadbury strategizes and posts creative stories about family or friends celebrating a moment of joy, festivals, togetherness, etc. Not just this, the brand focuses on UGC content and posts stories of their users. To keep up with the engagements, Cadbury conducts regular competitions on its social media where participants are rewarded with features, Cadbury goodies, discount codes, etc.

Catchy Taglines : Marketing and ad copies play a vital role in setting the tone of the brand and to reach to its target audience in India, the brand has used simple yet emotionally connecting taglines like “Kuch Meetha Hojae”, and “Mann Mein Laddoo Phoota” to trigger the emotions and create top of mind awareness about Cadbury.

Who knew Cadbury would use such an elaborate marketing strategy to solidify themselves in the market? But, this is not the case with just Cadbury. Many other companies use a variety of such strategies to create a buzz about themselves. Want to which of these companies are? Check out the business model of Ikea and the business model of Nike. I know two very different companies, but you will be surprised to know all about its workings.

Marketing Strategies of Cadbury

Cadbury employs various marketing strategies to maintain its market dominance. These include leveraging nostalgia, creating emotional connections, and focusing on seasonal and festive promotions.

Renowned for its innovation and wide varieties, Cadbury possesses everything that a brand needs to stand apart from the rest. The company’s basic marketing and brand principles are timeless yet open to new audiences.

Let’s discuss a few points related to the marketing strategies of Cadbury in detail:

Strong Positioning and Personality

Since Cadbury is one of the oldest players in the market, its iconic purple and white packaging builds a strong brand personality that helps users identify Cadbury products easily. Not just this, the brand has positioned itself as a go-to name when someone is craving sweets or just wants to celebrate some milestone. Cadbury’s marketing strategy has helped the brand imprint itself into its customer’s daily life and routine.

Product Innovation

Despite the success of products like Cadbury Perk, 5-Star, Gems, and Dairy Milk, the brand has continually explored new realms and flavours, never resting on its laurelsSome of its successful innovations include names like Cadbury Orea, Tang, etc.

Emotional Marketing Strategy of Cadbury

Believe it or not, the company doesn’t just sell chocolate. They market the feeling that comes with eating the bar. Here, the marketing strategies of Cadbury involve a lot of emotional connections to persuade its audience. A great example of this can be the TV commercials by the brand. One can always notice a family or a group of friends or couples enjoying and cherishing Cadbury.

Strategic Collaborations

Cadbury fully recognizes that growth requires collaboration and that one cannot achieve everything alone. To grow and capture the market, Cadbury collaborated with Kwality Walls and launched ‘Kwality Walls Oreo’ ice cream. Through this marketing strategy of dairy milk, the company was able to give customers a chance to explore a new taste and allowed both brands to introduce some freshness and form a long-lasting relationship among themselves.

Corporate Social Responsibility (CSR) activities

To enhance credibility and contribute to environmental sustainability, Cadbury’s marketing strategy included constructing reviews at multiple factory locations to conserve rainwater and replenish bore wells. Additionally, Cadbury partnered with Kerala Agricultural University for cocoa research, resulting in hybrids that boosted cocoa yields.

By taking this initiative, the company provided employment opportunities to various communities and touched the lives of thousands of farmers.

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Digital Marketing Strategies

Cadbury’s digital marketing strategy relies on a diversified approach. They excel at creating engaging content, building communities on social media, and utilising various digital tools to reach their target audience effectively.

Search Engine Optimization (SEO) Strategy

This Cadbury case study illustrates how the company strategically enhances its online presence through effective SEO practices. Beyond incorporating relevant keywords, Cadbury meticulously optimizes its website by structuring content to align with user search intents. For instance, pages dedicated to popular products like Dairy Milk or 5-Star are meticulously crafted to include keywords such as “Cadbury Dairy Milk chocolate” or “Cadbury 5-Star bar,” ensuring high visibility in search results.

Moreover, Cadbury leverages high-quality images not only to enhance user experience but also to optimize them with alt tags containing keywords related to their products. This approach not only boosts accessibility but also reinforces SEO efforts by making images searchable and indexable by search engines.

Social Media Marketing Strategy of Cadbury

Cadbury has a strong presence on major platforms like Facebook, Instagram, YouTube, etc. They customize content for every platform, acknowledging the distinct user base and demographics. The brand actively engages with followers on social media platforms by sharing festive recipes, interactive content, and updates about new product launches. Furthermore, their social media feeds are filled with mouth-watering photos and videos of their chocolates.

They also create interactive campaigns, share behind-the-scenes glimpses, and run UGC initiatives( Content created by users online)to keep followers engaged. Cadbury actively responds to comments and messages, fostering a sense of connection and value for their customers.

E-commerce Strategy

Cadbury’s online store provides a seamless shopping experience, with easy access to a wide range of products, personalised gifts, and exclusive offers.

Another marketing strategy of Cadbury is building its presence with the help of a mobile app. The Cadbury Joy Deliveries app allows users to send personalised chocolate gifts and explore unique recipes, enhancing customer engagement and brand loyalty.

Influencer Marketing Strategy

Collaborating with popular food bloggers and celebrities, Cadbury leverages their reach to promote new products and engage with a broader audience. Cadbury frequently utilises influencer partnerships for hashtag campaigns. A good example was the #HowDoYouSilk campaign for Cadbury Silk Chocolate. The brand collaborated with influencers to showcase creative ways to enjoy their product, generating user-generated content and brand awareness.

Marketing and Advertising Campaigns

Cadbury’s marketing strategy embraces variety and employs diverse approaches to connect with its audience. One of Cadbury’s most famous campaigns is the ‘Gorilla’ advert, featuring a gorilla playing the drums to Phil Collins’ song ‘In the Air Tonight.’ This campaign not only captivated audiences but also greatly increased sales and brand recognition.

Their recent ‘Donate Your Words’ campaign highlights their commitment to social causes, enhancing brand loyalty and community engagement. The “Donate Your Words” campaign was rolled out through a series of emotionally resonant advertisements and social media activations, encouraging consumers to participate actively in spreading awareness and contributing to the cause of loneliness among the elderly.

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Top Competitors

Cadbury, of course, isn’t the only chocolate company in the world. Naturally, they face competition from several other major players in the chocolate market.  The following case study will explore some of Cadbury’s top competitors:

A powerhouse in the industry, Mars boasts iconic brands like Mars bars (known for their chewy nougat and chocolate coating), Snickers (the world’s best-selling candy bar, famous for its combination of peanuts, caramel, nougat, and milk chocolate), and M&M’s colourful candy buttons with a chocolate centre, offering a variety of flavours and textures). They cater to a broad audience with a focus on fun, energy, and satisfying snacking experiences.

This Italian company is synonymous with luxurious chocolates. Ferrero Rocher, their flagship product, features a whole hazelnut encased in a crisp wafer, coated in milk chocolate and hazelnut pieces. Nutella, their hazelnut spread, is a global phenomenon enjoyed on bread, pastries, and even straight from the jar.

A global food and beverage giant, Nestlé has a strong presence in the chocolate market. KitKat, their most recognisable chocolate, features a wafer biscuit covered in milk chocolate and comes in a variety of flavours.

Hershey’s

This American company is a dominant force in the US chocolate market. Their flagship product, Hershey’s Kisses, are bite-sized milk chocolate drops wrapped in silver foil. They also offer iconic brands like Reese’s (peanut butter cups in milk chocolate), Hershey’s bars (available in a variety of flavours and textures), and Jolly Rancher (hard candies with various fruit flavours).

Lindt & Sprüngli

A Swiss chocolatier known for its premium offerings, Lindt produces high-quality chocolate bars, truffles, and other confections. They are known for their smooth texture and use of high cocoa-content chocolate. Lindt caters to a discerning palate and targets consumers who appreciate luxury chocolate experiences.

Each of these competitors offers unique strengths that challenge Cadbury’s market share. By understanding its competitors’ strategies and target audiences, Cadbury can continue to innovate and adapt its offerings to stay ahead in the ever-evolving chocolate landscape.

Failed Campaigns

Cadbury’s ‘unity bar’.

The Unity Bar was a product launched by Cadbury to promote diversity and inclusion. The idea behind the Unity Bar was to celebrate different skin tones by featuring a blend of dark, blended, and white chocolate in a single bar. However, the campaign received criticism for its perceived superficiality in addressing complex social issues. Critics and consumers felt that the campaign was performative and did not genuinely contribute to advancing diversity and inclusion.

The backlash against the Unity Bar campaign highlighted concerns about companies using social issues as marketing tactics without substantive actions or commitments behind them. Cadbury faced negative feedback from various quarters, prompting them to acknowledge the criticism. In response, Cadbury refocused its efforts on implementing more meaningful diversity initiatives both within the company and in the broader community. This incident underscored the importance of authenticity and genuine commitment in corporate social responsibility efforts.

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Being an old-school chocolate brand in the sugar-free era, Cadbury has always been successful in its offline campaigns with its engaging and relevant campaigns that have been a hit in the past, and the impact of that can be seen in the present as well.

It has also used digital marketing strategies to its advantage up to the extent there is still room for improvement. Once it successfully utilises digital fronts to its full potential, it will be able to create a very healthy overall presence. Only time will tell how it works upon its weaknesses and competes for its fair share of the market.

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Explore our digital marketing case studies featuring top companies like the marketing strategy of Spotify , the marketing strategy of  Sephora , and the marketing strategy of Indian Oil Corporation for inspiration and learning.

With this, we conclude our case study on the marketing strategy of Cadbury. Don’t miss our curated digital marketing blogs—they might hold the key to your ideal course.

Frequently Asked Questions- Cadbury's Marketing Strategy

Cadbury's mission is to create delicious chocolate experiences that bring joy to people's lives while supporting ethical sourcing and sustainable practices.

Cadbury has a global workforce, but specific numbers can vary over time and by region.

Cadbury's latest product launch varies, as they regularly introduce new chocolate variations and seasonal treats to their product lineup.

Cadbury faces competition from major chocolate brands like Hershey's, Mars, and Nestlé.

The ‘Donate Your Words’ campaign by Cadbury aimed to raise awareness about loneliness among older people by removing words from its packaging to encourage conversations.

Cadbury engages with customers through social media, interactive campaigns, and personalised experiences to build connections and gather feedback.

Customers may experience concerns about product availability, pricing, and occasionally issues related to product quality or taste preferences.

The Cadbury Joy Deliveries app is a platform that allows users to send personalised Cadbury gifts to their loved ones, enhancing the gifting experience.

A notable Cadbury influencer could be someone like a popular food blogger or social media personality who promotes Cadbury products and engages with their audience.

Cadbury's Unity Bar was launched as a limited edition chocolate bar symbolising diversity and inclusivity, featuring different shades of chocolate to represent different skin tones.

Author's Note: My name is Aditya Shastri and I have written this case study with the help of my students from IIDE's online digital marketing courses in India . Practical assignments, case studies & simulations helped the students from this course present this analysis. Building on this practical approach, we are now introducing a new dimension for our online digital marketing course learners - the Campus Immersion Experience. If you found this case study helpful, please feel free to leave a comment below.

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we are design students and we were researching on Cadbury , we found your work . it is very helpful the way you have presented all the imp details in a crisp way with advertisements . GOOD WORK !!

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Home » Management Case Studies » Case Study: Kraft’s Takeover of Cadbury

Case Study: Kraft’s Takeover of Cadbury

Cadbury’s origins date back to almost two centuries when it was founded by John Cadbury who started the business by selling cocoa and tea in Birmingham, UK. Later he expanded by starting a line of beverages after a merger with Indian Schweppes changing the company name to Cadbury Schweppes. Successful product developments and launches have enabled Cadbury to boast of an extensive confectionery line consisting of Cocoa Essence, Easter Eggs, Milk Chocolate, Cadbury Fingers, Dairy Milk, Bourneville Chocolate, Milk Tray, Flake Creme Egg, Crunchie, Picnic, Curly windy, Wispa boost, Twirl and Time Out.

Kraft, on the other hand, is a US company about a century old, which started off as a door to door cheese business but expanded into other confectionery items through many takeovers previously such as Ritz Crackers, Nabisco (Oreos) and Phenix Cheese Corporation (Philadelphia Cheese) to achieve success. It is second in terms of sales and popularity in the confectionery industry with annual revenues of $42 billion, operating in more than 150 countries.

Cadbury and Kraft are both multinational operations with activities in both developed and developing countries. Cadbury is however the market leader in UK and Ireland’s confectionery where consumers have a liking for British chocolate containing vegetable oil having a richer taste in milk and also sweeter as opposed to continental chocolate having cocoa fat content; hence Kraft has a low share in such markets. Also, Cadbury’s strong standing in the Indian (Schweppes) and North American Markets was cleverly identified by Kraft who wanted to tap it and exploit under its own name now to add to its success story.

Inside Story of Cadbury and Kraft before Takeover

Cadbury has faced many ups and downs throughout its journey especially under the visionary leadership of Todd Stitzer. Todd Stitzer working successfully for 20 years for Cadbury Schweppes has played a key role as a master mind behind the acquisitions of soft drinks industries made by Cadbury in US. He was later appointed as the chief strategy officer by John Sunderland to the confectionery side to achieve the similar success. The then competitors in the chocolates and sweets industry were the international companies Nestle, Mars, Kraft, Wrigley, Ferrero and Hershey. Stitzer said that acquisitions alone would not solve the problems of Cadbury. He said that the revenue growth model has to be revitalized to gain in the financial performance . Stitzer had developed many strategies, took some visionary steps and led Cadbury gain the business world with his strategic thinking . Stitzer and his management team aimed at the global domination in the Confectionery world, while the stakeholders were much worried about the financial performance. Overall with all his visionary leadership abilities and strategic decision making capabilities , Cadbury Schweppes split into pure confectionery leader Cadbury. Nelson Peltz, founder of the hedge fund Trian Fund Management also had his own role in the business of Cadbury.

Irene Rosenfield, CEO, Kraft Food Industries Inc. had a keen interest in the confectionery business and proposed an offer to buy Cadbury to Carr, Chairman of Cadbury after Sunderland. Carr without consulting the stakeholders had refused the offer but Peltz who still owned the shares in the Cadbury with discussion and negotiation with Kraft finally made Cadbury lose its independence in January 2010.

The Idea of a Takeover

Due to recessionary times following fall in sales, many companies in the confectionery industry recognized the potential of merging with their competitors to become competitive and enjoy economies of scale . Cadbury had continued to be a strong performer in the confectionery industry and shown steady performance and growth in light of the turbulent economic times. Much of Cadbury’s growth was due to its presence in emerging global markets . Kraft was attracted to Cadbury due its strong performance during the economic crisis . This led to Kraft’s proposal to Cadbury of a takeover.

The initial offering of $16.3 billion or 740 pence per share by Kraft to Cadbury was outright rejected as derisory and an attempt by Kraft to take over Cadbury for cheap. Cadbury has had strong brands whose icons are etched in the minds all over the world, an impressive category line and extensive worldwide consumer base. Successful financial overview and steady business model reinforced Cadbury’s belief that it should be an independent company. Kraft’s bid did not come remotely close to reflecting the company’s true worth .

Kraft proposed another bid shortly. This comprised of an offer of £10.1 billion ($17 billion, same terms as the first bid in September-300 pence in cash and 0.2589 Kraft shares per Cadbury shares. The closing price of 9th November reflected the bid valuation of Cadbury at 710 pence which was lower than the share price of 761p on that day.

Kraft’s share price: $26.53; Exchange rate (as agreed): $1.66 / GBP. Ratio: 0.2589 Kraft shares per every Cadbury share (26.53/1.66 * 0.2589 = £ 4.133 + 4.13 = £ 7.13). This was less than the price of Cadbury on that day and even the initial level of £ 7.45.

Cadbury rejected the offer on the basis of undervalued Cadbury which was now of a lesser value. It was in fact even lower than the current Cadbury share price. The Cadbury chairman said: “Under your proposal, Cadbury would be absorbed into Kraft’s low growth, conglomerate business model , an unappealing prospect which contrasts sharply with our strategy to be a pure play confectionery company.”

The hype created by rumors of takeover figures led to exciting speculations. Media reported Ferrero to be considering a rival bid. Hershey’s confirmed its own interest for same purpose. There were not only speculations of a joint bid but also of Kohlberg Kravis Roberts & Co. joining the bidding race. All this favored Cadbury whose share price witnessed new highs. Hershey’s and Ferrero would struggle to bid alone and only their combined offer could beat Kraft’s offer.

On January 18, Kraft finally managed to take over one of the world’s second largest confectionery manufacturer in a hostile bid of an enormous 11.5billion (US$19.5billion). This deal will be remembered in history as one of the largest transnational deals, especially in the aftermath of credit crunch. After four months of continuous resistance, Cadbury shareholders agreed to Kraft’s offering of $19.5 billion, (840 pence per share). This was agreed upon with the spirit of creating the world’s largest confectioner. This consisted of 500 pence in cash per share and the remaining amount paid to Cadbury shareholder in the form of Kraft shares. The shareholders had the power to decide the mix of amount they wanted in cash and shares. According to estimations, the finals offer presented a multiple of 13 times Cadbury’s earnings in 2009 (after interest, taxes and debt were paid).

The high bid price overruled the threat of Hershey’s or Unilever offering a price for the same strategy, that is take over. The only rival left was Nestle which too was reduced significantly when Cadbury’s Director signed the agreement that if Cadbury were to change its mind about the takeover, it would pay a handsome penalty for it, hence such a situation arising became highly unlikely. The Kraft management, led by Irene Rosenfeld also assured that Kraft had a great respect for Cadbury’s brands, employees and reputable history and therefore the employees of Cadbury would do well in the new environment. Also, she verbally assured that under the new agreement the previous contractual rights of the employees would remain the same as before.

Advantages of the Takeover for Kraft

It was the biggest cross-border acquisition of that year. Such a deal clearly pushed Kraft as number 1 dealer in confectionery. A merger allowed Kraft to gain a footing in the fast growing chewing gum category.

Kraft management believes that the combination of the two companies is both a strategic as well as complimentary fit, boasting a portfolio of over 40 confectionery brands each having the ability to yield annual sales of over $100 million. A combination of Kraft products like Toblerone, Oreos and Ritz crackers with Trident gum and Dairy Milk chocolates from Cadbury would result in $625 million annual pretax cost savings on annual company costs of research and development, advertising, branding and procurement. There would also be a significant level of revenue synergy ($50 billion annually) that would subsequently result in higher earnings per share. After the takeover, Kraft would have a greater ability to compete with the giant Nestle on confectionery grounds by increasing its market share in Britain and enjoying the benefits of Cadbury’s strong geographical networking in Asia.

Kraft’s growth prospects would brighten through access to new brands particularly in the confectionary department along with new distribution channels for the existing products which are outside US. These constitute about one third of the market in developing countries such as Africa, China and India.

Advantages of the Takeover for Cadbury

Cadbury would profit from Kraft’s extensive distribution network around the globe. Cadbury had been vulnerable to a takeover ever since it demerged its US soft drinks business. This high takeover bid was an attractive opportunity to do away with such a fear. A combined Kraft and Cadbury would significantly expand the global reach of both businesses and create synergies worth in the region of $625m. Since a stand-alone Cadbury had limited opportunities for value creation , agreement to the contract for takeover seemed like a wise decision.

Negatives of the Takeover

Along with the obvious benefits come the many challenges and ethical issues. These are primarily high debt issues and employee layoffs. The high debt position of Kraft has further worsened with the takeover as funds were borrowed to pay the Cadbury shareholders a higher yield. Kraft also sold off its frozen Pizza line in order to make the takeover happen.

The unions are worried that the jobs of hundreds would be at stake (estimated 9000 plus) as Kraft would try to reduce costs to operate efficiently and pay back its debts. The company has also not given any formal assurance that it would protect 4500 UK jobs. Also it is a known fact that when a company needs to cut costs, jobs and job conditions suffer.

The British Government also opposes takeovers of British companies by foreign giants as it nearly always leads to job losses. This takeover too was met with resistance including Gordon Brown’s advice and insistence against its happening but the shareholders overruled it and still went ahead with the deal. According to a Union head, “This is a very sad day for U.K. manufacturing. A successful, iconic, independent U.K. brand will now be owned by a giant company with massive debt.”

In the face of such a scenario, even if employees are laid off it will not affect those who are rich and/ or are major shareholders in the company. For example, if the chairman, Roger Carr gets axed, he would still walk away with $30 million! This proves that it is the low level managers and employees who feel the vulnerability of such an action. According to David Bailey, professor at Coventry University Business School; “Serious questions need to be asked about Kraft’s intentions… Kraft already has a track record of cutting production and moving production abroad… There’s no guarantee that they’ll keep production in the UK in the long run.”

When employees of both companies were interviewed to ask about their view points, most expressed fear and uncertainty. They were resistant to the idea of such a large company where their positions and titles might be reduced or lost due to the massive structure. They are also despondent of their lack of involvement in this decision. According to one employee, “nobody really knows what is going to happen, but it is definitely not going to be pleasant.”

A disadvantage for Kraft’s shareholders of the takeover is that they now mentally feel less financially strong as assets were being sold and the entire pizza production plant worth $3.7 billion was sold to raise money for the takeover.

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Case Study 10: A Sweet Deal: Cadbury Leads Kraft into Emerging Markets

• First Online: 01 January 2013

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February 2010 saw the acquisition of Cadbury, one of the two major confectionary players in the world, by USA-based Kraft Foods Inc.. Analysts believe that the acquisition of Cadbury was the final step in a strategy designed to enable Kraft to be restructured and split into two companies by the end of 2012: a grocery business worth around $16bn; and a global snacks business worth approximately $32bn global. Cadbury was pivotal in providing the scale that Kraft needed to strengthen its snacks business, providing it with the sought-after foothold in emerging markets, defined here as Latin America, Middle East, Africa, Eastern Europe and Asia Pacific. But how was Cadbury able to do this?

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A detailed mapping of the food industry in the European single market: similarities and differences in market structure across countries and sectors

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Spiteri-Cornish, L. (2014). Case Study 10: A Sweet Deal: Cadbury Leads Kraft into Emerging Markets. In: Mutum, D., Roy, S., Kipnis, E. (eds) Marketing Cases from Emerging Markets. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-36861-5_14

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The Kraft-Cadbury Acquisition: A Case Study in Corporate Mergers and Acquisitions

Mappa concettuale.

The Kraft Heinz Company's formation through the merger of Kraft Foods Group and HJ Heinz, and its strategic vision, is a key focus. The text delves into Cadbury's rich heritage and Kraft Foods' hostile takeover in 2010, analyzing the merger's impact on the industry, post-takeover challenges, and long-term effects on Cadbury's brand and practices.

Mostra di più

The Kraft Heinz Company

Formation and history.

The Kraft Heinz Company was formed in 2015 through the merger of Kraft Foods Group and HJ Heinz Holding Corporation

Brands and Revenue

Prominent Brands

Kraft Heinz is home to numerous brands, many of which generate over $1 billion in annual revenue

Revenue Generation

The company's brands generate significant revenue, making it the third-largest food and beverage company in North America and the fifth-largest in the world

Mission and Strategy

Kraft Heinz's mission is to become the best food company, driving its strategic decisions, including mergers and acquisitions, to achieve its goals

History and Growth

Cadbury is a storied British confectionery company founded in 1824 that has grown into a multinational brand famous for its chocolate products

International Presence

Major Markets

Cadbury's major markets include the United Kingdom, the United States, Australia, and India

Influence of International Investors

Cadbury's ownership and strategic direction have been significantly influenced by international investors, including those from the United States

Resistance to Acquisition

In 2009, Kraft Foods launched a hostile takeover bid for Cadbury, which was initially resisted by Cadbury's leadership and the UK government

The Kraft-Cadbury Acquisition

Strategic motivations.

Kraft's pursuit of Cadbury was part of a larger strategic plan to restructure the company and strengthen its global snacks division

Successful Acquisition

Despite initial resistance, Kraft's final offer of 840 pence per share was accepted by the majority of Cadbury shareholders, leading to a successful acquisition

Expected Benefits

The merger promised cost synergies and a stronger competitive position for Kraft, while offering potential benefits for Cadbury through access to new markets and synergistic potential

Challenges and Controversies

Increased Debt and Job Cuts

The acquisition led to increased debt for Kraft and concerns about job cuts, which were realized when Kraft began to lay off workers and close some of Cadbury's UK factories

Criticism and Tension

The takeover faced criticism from unions and the British government, highlighting the tension between corporate expansion and the preservation of a company's heritage

Impact and Outcome

The Kraft-Cadbury acquisition marked a significant event in the food and beverage industry, with Kraft becoming a leading confectionery business and Cadbury now part of Mondelēz International

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Kraft Heinz formation through merger

Formed by merging Kraft Foods Group and HJ Heinz in 2015.

Kraft Heinz market ranking in North America

Third-largest food and beverage company in North America.

Kraft Heinz global market position

Fifth-largest food and beverage company in the world.

The renowned ______ brand, known for treats like ______ and ______, was established by ______ in ______.

Cadbury Cadbury Eggs Dairy Milk John Cadbury 1824

Year Kraft launched hostile bid for Cadbury

2009, not 2019

Cadbury's preferred partners over Kraft

Nestlé, Ferrero, Hershey

UK government's concern about Kraft's takeover

Potential disregard for Cadbury's heritage and stakeholder interests

Kraft aimed to split into two entities, one for ______ snacks and confectionery, and another for ______ grocery items.

global North American

Kraft-Cadbury merger year

Kraft's post-merger industry status

Became leading confectionery business

Cadbury's post-merger distribution advantage

Gained access to Kraft's extensive distribution network

The acquisition of ______ by Kraft resulted in increased debt and subsequent worries about potential ______.

Cadbury cost-cutting measures

Role of shareholders in corporate acquisitions

Shareholders, including hedge funds, influence acquisitions focusing on short-term financial gains.

Post-takeover challenges for Cadbury

Cadbury faced increased debt and job cuts but continued brand growth post-Kraft takeover.

Cadbury's transition to Mondelēz International

Cadbury became part of Mondelēz International, a global snacks leader, after Kraft's 2012 spin-off.

The ______-______ acquisition serves as an instructive example in the realm of corporate mergers and acquisitions.

Kraft Cadbury

The result of the ______-______ deal underscores the conflict between the growth of a corporation and the maintenance of its legacy.

Ecco un elenco delle domande più frequenti su questo argomento

When was the kraft heinz company established, and what is its corporate mission, what is the origin and global reach of cadbury, what was cadbury's response to kraft foods' initial takeover bid, why did kraft aim to acquire cadbury, and what was the final offer, what were the anticipated benefits of the kraft-cadbury merger, what were the negative outcomes following the kraft-cadbury merger, how did the kraft-cadbury takeover affect the company's ownership and practices, what are the key takeaways from the kraft-cadbury acquisition, contenuti simili, esplora altre mappe su argomenti simili.

Cadbury's Strategic Positioning

Zara's Business Practices

Porter's Five Forces Analysis of Apple Inc

Starbucks' Marketing Strategy

Organizational Structure and Culture of McDonald's Corporation

The Enron Scandal and its Impact on Corporate Governance

IKEA's Global Expansion Strategy

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The Formation and Vision of Kraft Heinz Company

Cadbury's Rich Heritage in Confectionery

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Marketing Case Study - Cadbury beverages: Relaunching Crush Brand

Christelle Monteillet – Cemiyle Parlak – Antoni Yalap

CPE 702 – INTERNATIONAL MARKETING

Mr. Pierre-François Jeandet

March 22, 2003

Marketing Case Study

CADBURY BEVERAGES

Relaunching Crush Brand

                                                                                         Page

Introduction                                                                        3

I – The carbonated soft drink industry                                        4

• An introduction                                                4        
• The industry structure                                        4
• The industry economics                                        5
• Product and brand categories                                6
• Soft drink purchase and buyer behavior                        6

II – Changes in the orange category between (1985-1989)                7

• The situation                                                        7
• Market shares and market coverage                        7
• Advertising and positioning                                8
• Brand positioning map                                        10

III - Cadbury’s competitive position in the US soft

Drinks’ market and orange category                                         11

A)  Introduction                                                        11

        B)  SWOT Analysis                                                11

        C)  Key Success Factors                                                12

IV – Media Advertising for the major brands                                13

V – Pro Forma Income Statement for Orange Crush                        14

        A)  Forecast of $ sales                                                14

        B)  Pro forma income statement                                14

VI - Crush’s objective and strategies in terms of

advertising and promotion                                                        15

Conclusion: Crush orange positioning recommendations                16

• Introduction

Cadbury is the beverage division of Cadbury Schweppes PLC, a major global soft drink and confectionery marketer. The turnover of the company was, in 1989, $4.6 billion and the company was present in 110 countries. Cadbury Beverages’ headquarters are in Stamford, Connecticut.

Cadbury Schweppes PLC was the world’s first soft-drink maker. The first product was an artificial mineral water marketed in 1783, in London. There is an important point to set the brand image.

Cadbury Schweppes PLC expanded all over the world, especially in the British Commonwealth. In 1969, Schweppes decided to diversify into food products and merged with Cadbury, a major British candy maker who began its business in 1830.

In 1989, Cadbury Schweppes was one of the world’s largest multinational firms and was ranked 457 th  in Business Global 1000 .

Beverages accounted, in 1989, 60% of company’s worldwide sales and 53% of operating incomes. Confectionery items accounted for 40% of worldwide sales and represented 40% of operating incomes.

Cadbury Beverages was present in three beverages categories with a huge quantity of brands:

• Carbonates:  Canada Dry, Schweppes, Sunkist, Crush, Hires, Sun-Drop, Gini, etc …
• Waters:  Schweppes, Canada Dry, Malvern, etc …
• Still Drinks/Juices:  Oasis, Vida, Trina, Mott’s, Holland House, Red Cheek, etc …

These brands and beverages were differentiated in several categories like Regular or Diet and Crush and some other brands were differentiated by the flavor (orange, cherry, pineapple, etc …).

This is a preview of the whole essay

Cadbury Beverages is trying to re-launch Crush, Hires and Sun-Drop, brands that had been acquired from Procter & Gamble in 1989. Managers decided to focus on the Crush brand of fruit-flavored carbonated beverages. The aims are:

• Rejuvenate the bottling network for the brand,
• Develop a base positioning,
• Create a new advertising and promotion program.

We will try to develop a re-launching marketing strategy for Crush, analyzing the industry, defining the competition advantages of Cadbury Schweppes and making some recommendations for the success of this brand.

I – The carbonated soft drink industry

• An introduction

Cadbury Schweppes is the world’s third largest soft drink marketer. The leaders are Coca-Cola and PepsiCo. Cadbury acquired this position by a heavy marketing investment in the Schweppes brand name and extensions to different beverage products.

The company acquired other brands like Canada Dry or Sunkist with an established customer franchise for each one. The acquisitions continued with brands in Spain and Portugal. Cadbury acquired the leading bitter lemon brand, Gini, famous in France and Belgium.

Crush was acquired in 1989 for $220 million from Procter & Gamble. In the United-States, Cadbury Schweppes was the fourth largest soft drink marketer with a 3.4% market share of carbonated soft drink market. The three leaders were (and are):

• Dr. Pepper/7UP (Cadbury acquired this company)

The point is that the company’s brands were market leader in their specific categories like, for example, Canada Dry or Schweppes.

• The industry structure

American consumers’ soft drinks consumption doubled between 1969 and 1989, from 23 to 46.7 gallons. The estimated turnover in retail sales in 1989 was $43 billion.

There are three major participants in the production and distribution of carbonated soft drinks:

• Concentrate producers
• Retail outlets

Below, we see the mechanism for regular drinks:

                                Manufacture basic flavors                  Add Sweeter

Concentrate Producers                                     Bottlers                          Retail

                                                                           Package

For diet drinks, the concentrate producers include an artificial sweetener.

There are over than 40 concentrate producers in the United-States even if 82% of sales are accounted by Coca-Cola, PepsiCo and Dr. Pepper/7UP. Bottlers are more numerous: 1000 bottling plants are present in the United-States. The bottlers are owned by concentrate producers or franchised to sell the brands of concentrate producers.

One-half of Pepsi-Cola’s sales are through company-owned bottlers. Franchised bottlers distribute a concentrate producer’s branded line in a defined territory. They can represent also noncompetitive brands and decline concentrate producer’s secondary lines. A franchised bottler of Pepsi-Cola cannot sell Royal Crown Cola but can bottle and market Orange Crush, for example.

The distribution and the sale of carbonated soft drinks is done across:

• Supermarkets
• Convenience stores
• Vending machines
• Fountain service (McDonald’s)
• Thousands of retail outlets

Soft drinks are sold in bottles and cans except the fountain service. Supermarkets accounted for 40% of industry sales. Supermarkets are considered by analysts as the key of successful soft drink marketing.

• The industry economics

Soft drink industry is characterized by a heavy investment in advertising, selling and promotion.

Concentrate producers develop usually the national consumer advertising and promotion programs, product development & planning and marketing research. Bottlers develop trade promotions to retail outlets and local consumer promotions. They are responsible for selling and servicing retail accounts.

The pricing is difficult to evaluate. Differences exist between Regular and Diet soft drinks and between concentrate producers and bottlers. Below, we can see the cost structure in the Orange category:

As we can see, the advertising and promotion costs are too high (almost 50% of net selling price) for concentrate producers. For bottlers, this is the cost of goods sold which is too high. Pretax cash profit/case is relatively the same for regular concentrate producers and bottlers (16% and 15%). Differences are to note for diet soft drinks (30% for concentrate producers and 12% for bottlers).

• Product and brands categories

The leader of flavors is Cola with two-thirds of total carbonated soft drink sales. Other flavors (orange, lemon, cherry, root beer) represent one-third of sales. Below, market share of different flavors:

• Cola:  65.7%
• Lemon:  12.9%
• Others:  21.4%

Diet soft drinks represented 31% and regular 69% of sales in 1989. The share of diet drinks was important in 1980’s.

Concerning brands, there are more than 900 registered brand names for soft drinks in the United-States. Most of them are sold regionally. Below, we can see soft drink brands market shares in the United-States, in 1989:

• Soft drink purchase and buyer behavior

The purchase of soft drinks in supermarkets is often unplanned. Buyers respond favorably to price promotions, in-store displays and other promotions. The supermarket has a key function in the sales.

The classic supermarket buyer is a married woman with children under 18 years living at home. Soft drinks’ buying is seasonal: the consumption is a little bit higher during summer months. The consumption depends also on regions.

Per capita consumption in the East South Central states was highest in 1989. This region consumed 54.9 gallons whereas the national per capita average was 46.7 gallons (a gallon equals almost 4 liters). The lowest consumption was in the mountain states (37.1 gallons). Consumption of diet beverages was more important among consumers over 25 years. Teenagers and younger consumers preferred regular soft drinks.

II – Changes in the orange category between 1985 and 1989

• The Situation

The orange flavored drinks’ sales increased between 1984 and 1989. Thanks to heavy investment made by Coca-Cola (Minute Maid) and PepsiCo (Mandarin Orange Slice), the number of cases raised rapidly.

126 000 000 cases of orange-flavored soft drinks were sold in the supermarkets in 1989. So, the total is (with fountain service and retailers) is:

126 000 000 * 2.5 = 315 000 000 cases

In 1989, four brands were leaders on the market:

• Mandarin Orange Slice (PepsiCo)
• Sunkist (Cadbury Beverages)
• Minute Maid Orange (Coca-Cola)
• Orange Crush (Cadbury Beverages)
• Market shares and market coverage

Below, we can see the graphics of the relationship between market share and market coverage for four brands.

This is the graphic of the evolution of market shares for different competitors:

As we can see, the market share of Crush is decreasing. But, the cumulated market share for Cadbury was, in 1989, 22% (Sunkist and Crush). So, its market share is higher than PepsiCo and Coca-Cola. The market coverage differs from one to another company.

The competitors sold both regular and diet drinks. The importance of regular was great except for Minute Maid which splits between regular (53%) and diet (47%).

• Advertising and Positioning

The targets of the brands were different. The positioning was also different. Some insisted on orange flavor, others on young lifestyle, etc…

The advertising budget for the four leaders was $26 million in 1989. PepsiCo and Coca-Cola represented 84% of all advertising expenditures. So, their positioning was well done. The leaders used the television, the radio network, newspapers and billboards to promote their orange brands. Cadbury spent less money to advertise its brands.

Below, the graphic of relationship between brands advertising share and total advertising budget:

To compare their advertising budget with their market share, we present, below, the graphic of the evolution of different brands’ market share.

Minute Maid invested a huge amount of money to reach 14% of market share. Inversely, Sunkist has reduced this investment.

We know that expenditures for print and broadcast media declined each year after 1986. That was the year of the national launching of Minute Maid through United-States. The variety of media used enlarged.

The pricing was almost the same. Differences existed between regular and diet drinks’ gross profit margin but the differences between markets shares were due to promotions. The cost of advertising and promotion programs was supported by the concentrate producers and bottlers.

• Brand positioning map

The targets of competitors are teens, young adults and they defend a brand image. This image is different from a brand to another. Our Crush brand’s household size is between 3 and 5. Our customers are teens and adults between 13 and 29. The graphic below represents the loyalty percentage of customers to the brand giving the household size.

III - Cadbury’s competitive position in the US soft drink market and orange category

After having defined the characteristics of the soft drink industry and especially the orange category, we will now examine Cadbury’s competitive position within this market thanks to a SWOT analysis.

SWOT Analysis

• Key Success Factors

We can now determine the three key success factors of the company in the orange category:

• Crush’s brand image toward consumers and bottlers
• Underdevelopment of the diet segment
• Possibility to use Cola’s bottlers channel for distribution

IV - Media advertising $ per case for major brands

We will now estimate the advertising budget of each brand on the 1989 basis.

Total number of cases: 315 000 000

• Mandarin Orange Slice (21% market share):

3 150 000*21% = 66 150 000 cases

Media advertising per case: 11 388 100 / 66 150 000 = 0.17 $  per case

• Minute Maid (14%):

3 150 000*14% = 44 100 000 cases

Media advertising per case: 10 463 100 / 44 100 000 = 0.24 $  per case

• Sunkist (14%):

Media advertising per case: 2 301 900 / 44 100 000 = 0.05 $  per case

• Crush (8%):

3 150 000 * 8% = 25 200 000 cases

Media advertising per case: 1 853 600 / 25 200 000 = 0.07 $  per case

Total Cadbury advertising budget:

44 100 000 + 25 200 000 = 69 300 000 cases

Advertising budget: 2 301 900 + 1 853 600 = 4 155 500

Media advertising budget: 4 155 500 / 69 300 000 = 0.6 $  per case

V - Pro forma income statement for Orange Crush

• Forecast of $ sales

With 15% market share, we would obtain: 315 000 000*15% = 47 250 500 cases sold per year.

Total value:  47 250 500 * 5.85 $ = 276 412 500 $ sales  (138 206 250 $ sales per segment).

• Pro Forma Income Statement

VI - Crush’s objective and strategies in terms of advertising and promotion

First of all, Crush should forecast an advertising budget of 10 Million dollars in order to be able to reach a high market coverage rate of nearly 85% and to increase our market share from 8 to 15%.

To this purpose and as we previously said, we will focus on both national and local media:

As far as the national campaign is concerned, we will use TV cable and network, syndicated TV, radio, and magazines, sponsorship, games and competitions.

Concerning the local campaign, we will use TV commercials, radio, flyers, outdoor billboards, newspapers. We will also use incentive bonuses on sales with bottlers (for example we will allow them 15 to 25 cents per case sold).

Conclusion:  Crush orange positioning recommendations

There are different possibilities concerning Crush’s positioning such as:

• Focus on the young adults segment (18-34 years) with a household purchasing size of 1-2 persons
• Focus on the teens segment (12-24 years) with 3-4 persons
• Development of the diet segment
• Focus on the regular
• Advertising:
• Theme campaign:
• Natural flavour
• Contemporary youth culture
• Media campaign:
• National campaign
• Local campaign

We will define a new positioning for orange Crush that is to say we will first focus on the young adults segment in order to prevent Sunkist’s cannibalization and to establish Cadbury’s presence on the two age categories segment.

Secondly, we will develop the diet segment (50%) because it has a great potential unexploited with a higher gross profit margin than the regular segment and a high growth; besides, as Sunkist is present on the regular segment, this tactic could enable again the brand to evolve on both diet and regular segments.

Thus, as we decided to develop the diet segment, we will insist, through our advertising campaign, on the sugar free and natural flavour, and keep Sunkist focusing on the youth culture campaign.

Finally, concerning the type of media that we will use, we will operate on both national and local market thanks to a higher variety of ways.

* Regular, Diet & Caffeine-free

Document Details

• Word Count 2908
• Page Count 17
• Level AS and A Level
• Subject Media Studies

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