- Number one selling chocolate bar
Cadbury is the number one selling chocolate bar in the UK, which gives the business a strong leading position in its confectionary market. They have the power to influence the market and their competitors simply because they are the market leader. They can afford to undercut or charge more for their chocolate bars and customers will remain loyal.
- Effective targeting through advertising
Cadbury’s ability to target their numerous markets is a definite strong point of theirs. The business uses different types of media for advertising so they can reach a larger proportion of the marker and attract other people to purchase their products. They produce a diverse range of products, which suit many different consumer needs. This allows them to attract larger proportions of the market by producing at least one product which suit each target groups needs.
Cadburys have worked for years at mastering the best quality tasting chocolate products for their customers. This is one of the main reasons they are the UK’s top selling chocolate company today. The business has increased quality further by recently going Fair Trade in the summer of 2009. This means that the quality of chocolate has improved more so because of the quality of ingredients.
Cadbury has a successful website which has easy access through the Internet. Because of the easy access it provides convenience to customers whom are visiting the site. The website shows strong brand awareness with moving images and a deep purple colour scheme. The audience can immediately identify it with Cadbury. The website provides history of the company, recipes and games. The games provide good entertainment as well as enticing players to buy Cadbury products as it is on their brain.
- Wide distribution network
Having a wide distribution network means their products are distributed to many parts of the country as well as the world as it is a global business. Cadbury have moved one of their Bournville factories to Eastern Europe making it easier to distribute to other countries in part of the continent as well as decreasing distribution costs.
Cadbury has a very strong brand name, which benefits the business, as people prefer buying from popular brands, which they know and trust. Cadburys strong image enables them to be more creative when advertising. Cadbury does not have to spend, as much tine explaining what the advert is for as it is usually instantly recognisable making it easier for the business to get their message across the audience. This increases effectiveness of adverts making them more successful. The fact that Cadbury is still doing well during our economic climate shows how strong Cadbury’s brand is. People are still willing to spend on their products even though they are cutting back on luxuries. People may also be depressed and want to buy a cheap luxury like chocolate to make them feel better.
Cadbury’s Great Britain profits grew by 15% in 2008/2009 even though that was during recession. This shows a good indication that Cadbury’s should make it and survive through this current financial climate other companies seem to be going through.
WEAKNESS
In 2006 an outbreak of Salmonella caused by Cadbury’s products infected 42 people. Cadbury was fine £1 million and had to pay costs of £152,000. In addition they had to destroy all of their products, which caused them to loose a lot of money.
Cadbury’s brand name and image suffered damage as people lost their trust in the company. Sales suffered 25% and their share value dropped 1.1%. People thought twice about buying Cadbury products and they had to regain the trust of all their consumers.
Cadbury’s announced in 2007 that by 2010 they would have relocated several UK factories to Eastern Europe. They intended to cut 500 jobs at their factory in Bristol, 200 jobs from Bournville and many others from existing factories. Workers will have a lot of uncertainty and would have changed job in the scenario that they may loose it unwillingly. Cutting UK jobs make people feel as if they do not treat their staff well and are not helping with the current problem the UK is facing economically. This caused a lot of bad press and gave Cadbury’s a negative shadow.
OPPORTUNITIES
By relocating factories to Eastern Europe, production costs will narrow. It also makes it easier for products to be distributed throughout Eastern Europe, cutting costs of distribution too. Reducing expense costs will allow Cadbury to maxamise their profits, which could be spent elsewhere, for example, expansion.
THREATS
Cadbury’s competitors provide a much smaller variety of products. Therefore, Cadbury meets more needs of different target markets and are preferred by many people over their competitors who are less likely to provide for their wants and needs.
Reports have shown that the recession has not affected Cadbury’s. However it has affected the business, as it is now much harder for them to borrow money from banks. They are not lending as much money to large businesses due to the threat they are under from the recession.
With the current raise of concern on the increase of obesity, Cadbury’s could start receiving blame as the number one chocolate selling brand. If this happened, Cadbury’s will sore from sales and less people may become health conscious and consume less chocolate.