Strengths:

• Strong brand names like Cadbury Dairy Milk, Five star and Eclairs.
• Rich product mix.
• Support from the parent Cadbury Schweppes.
• Cadbury is the largest global confectionery supplier, with 9.9% of global market
share.

• Parent Cadbury’s financial strength (Sales turnover 1997, £7971.4 million and
9.4%)

• Strong manufacturing competence, established brand name and leader in

innovation.

• Advantage that it is totally focused on chocolate, candy, chewing gum, unique

understanding of consumer in these segments.

• Successfully grown through its acquisition strategy. Recent acquisitions, including

Adams, 2003, enabled it to expand into important markets like the US market.

Weaknesses:

• Lack of launch of new brands in Chocolates segment.

• Cadbury's recall over 1 million chocolate bars over salmonella fears
• Cadbury has a reputation for new product development and creativity.
However, they remain vulnerable to the possibility that their innovation
may falter over time

• The company is dependent on the confectionery and beverage market, whereas other
competitors e.g. Nestle & they have a more diverse product portfolio, where profits can
be used to invest in other areas of the business and R&D.

• Other competitors life Kraft , Nestle have greater international experience - Cadbury has
traditionally been strong in Europe. New to the US, possible lack of understanding of the
new emerging markets compared to competitors

Opportunities:

• • The Indian market and more specifically the urban areas where the
penetration of Chocolates is low can be developed as a future market
through affordability and availability.
• Using information and technology to bring efficiency in logistics and
distribution.
 • Cadbury has decided to focus on a few of its key brands such as Cadbury
Dairy Milk, Bournvita, Eclairs and Halls to drive growth for the company
• New markets. Significant opportunities exist to expand into the emerging
markets of China, Russia, India, where populations are growing,
consumer wealth is increasing and demand for confectionery products is
increasing.

• The confectionery market is characterized by a high degree of merger and

acquisition activity in recent years. Opportunities exist to increase share
through targeted acquisitions.

• Key to survival within the FMCG market is increasing efficiency and

reducing costs. Cadbury Fuel for Growth and cost efficiency programmes
seek to bring cost savings by: 1) Moving production to low cost countries,
where raw materials and labour is cheaper ii) reduce internal costs -
supply chain efficiency, global sourcing and procurement, and wise
investment in R&D.

• Innovation is key driver. To respond to changes in consumer tastes and

preferences - healthier snacks with lower calories need to be developed.
R&D and product launches have led to sugar-free & center filled chewing
gum varieties and Cadbury premium indulgence treat. Low-fat, organic
and natural confectionery demand appears strong.

• Cadbury India is attempting to increase the declining market for chocolate

with innovation, one of which is its sweet snack, Bytes.

• Brand ambassador Amitabh Bachchan for advertising there new products.

Threats:

• • Stiff competition in Confectionery segment.

• • The company has large exposure to foreign currency exchange rate risk,
mainly on account of imported cocoa beans and cocoa butter in US Dollar
and Pound Sterling.
• Worldwide - there is an increasingly demanding cost environment,
particularly for energy, transport, packaging and sugar. Global supply
chain in low cost locations.

• Competitive pressures from other branded suppliers (national and global).

Aggressive price and promotion activity by competitors - possible price
 wars in developed markets.

• Social changes - Rising obesity and consumers obsession with calories

counting. Nutrition and healthier lifestyles affecting demand for core
Cadbury products

• Coffee bean has potential to break into confectionary market

• Health organization have so many barriers for new development

• Cadbury’s are exposed to rises in the cost of chocolate and dairy

products.

• Entry into salted snacks was ruled out so it is important to do new

innovation and marketing research