cadbury packaging 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

Related posts.

How to Win Change Management Simulation Power and Influence? – Harvard University

Scott and Jaffe Change Model – Its Advantages and Limitations

Factors Affecting Organizational Change

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.

Learn From Asia’s #1 Digital Marketing Institute

AI-Based Curriculum

Dive in to the future with the latest AI tools

Placement at top brands and agencies

Talk to counsellor

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.

Are you set to unlock your full potential in the digital marketing arena? Our PG program is the way to go. Enroll in our MBA in digital marketing program and unveil the possibilities now.

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.

🚨 FREE MASTERCLASS

Building a Profitable Instagram Strategy

Worked with:

Register For Free

IG Content Creater With 10+ million views

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.

Also Read: Digital marketing courses in mumbai

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.

Note: Consider exploring the best online marketing courses to enrich your expertise with comprehensive knowledge and the latest industry trends.

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.

Bonus: Want to unlock the potential of digital marketing for your business or career? Here are some effective ways in which you can learn digital marketing .

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.

Read more about: For skill enhancement, explore our digital marketing courses in faridabad and digital marketing courses in pune , created to suit your requirements.

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.

Interested in mastering digital marketing essentials quickly? Our complete Online Digital Marketing Course is your gateway to success in this dynamic industry.

Not quite ready to commit? Start with our Free Digital Marketing Masterclass for a sneak peek at the content and decide if it suits your needs.

Or, if your focus is on social media, dive into our Free Instagram Marketing Course for targeted insights.

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.

IIDE Course Recommendation

" * " indicates required fields

Get Syllabus

By providing your contact details, you agree to our Terms of Use & Privacy Policy

Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs...... [Read full bio]

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 !!

Amazing Work Sir…I got full information I was looking for

If you’re intrigued by Cadbury’s brand journey and the secrets behind its consumer resonance, this case study offers valuable insights worth exploring further., This case also meticulously dissects Cadbury’s marketing strategy, unveiling its profound impact on Indian consumers which was very helpful for me.

Thanks for sharing. Reading this blog I got an idea about Cadbury’s marketing strategy.

Submit a Comment Cancel reply

Your email address will not be published. Required fields are marked *

Submit Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed .

Related Posts

Business Model of PayPal: A Comprehensive Case Study

by Aditya Shastri | Aug 26, 2024

Quick Read   Explore the business model of PayPal, a global leader in online payments....

Extensive Business Model of Patanjali

Quick Read   The business model of Patanjali illustrates a unique blend of traditional...

Case Study on the Valuable Business Model Of VISA with Full Explantation

by Aditya Shastri | Aug 20, 2024

Quick Read   Explore the business model of Visa Inc., a global leader in payment technology....

I’m Interested in This Masterclass

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.

Key Points	Statistics
Dairy Milk Portfolio’s Share in India	40%
Cadbury’s Global Confectionery Brand Ranking	2nd (behind Mars)
Number of Cadbury Sub-Brands	57
Countries Cadbury Operates In	50+

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.

Pricing Strategy	Benefits
Skimming Pricing	Positions Cadbury as a premium brand, capitalizing on the high-quality experience associated with their products.
Economy Pricing	Maintains accessibility and affordability, ensuring that Cadbury’s products reach a broad consumer base.
Bundle Pricing	Provides additional value to consumers during special occasions and holidays through attractive discounts and value packs.

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.

Key Statistics:	Impact:
Cadbury operates in more than 50 countries worldwide.	Demonstrates global reach and market presence.
In India, Cadbury’s chocolate confectioneries hold a 70% value share of the market.	Highlights Cadbury’s strong position in the Indian chocolate market.
The Cadbury campaign in India achieved a 90% completion rate for the Personalized Video.	Indicates high consumer engagement and interest in personalized marketing.
Over 12% of viewers went on to share their video with friends on social media in India.	Reflects the viral nature and positive reception of Cadbury’s advertising campaigns.
Idomoo has helped leading brands in banking, travel, and telecommunications industries.	Highlights the effectiveness of Idomoo’s personalized video technology in various sectors.

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.

Key Highlights	Data
Top-Selling Chocolate Bar in the UK since 2014	Cadbury Dairy Milk
Debut Year	1905
Global Presence	Over 200 countries
Instagram (@cadburycelebrations_in) Followers	More than a hundred thousand
Instagram (@cadburydairymilkin) Followers	More than 200 thousand
Instagram (@cadbury_dark_milk_india) Followers	More than 400 thousand
YouTube Subscribers	Over 548k
Twitter Followers	More than 1 million
Global Net Sales (2019)	$13.9 billion
Key Markets	UK, Australia, India, South Africa
Target Audience	All age groups
Brand Value (2022)	$Y

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.

Collaboration	Partner	Objective
Grenade	Nutrition brand known for protein bars	Create a protein bar combining Cadbury’s taste with Grenade’s nutritional benefits
Oreo	Popular cookie brand	Develop the “Stay Home Stay Safe: At Home with Oreo” campaign to provide comfort during the pandemic
Influencers	Popular social media personalities	Enhance social media reach and create relatable content
Celebrities/Sports teams/Other brands	Well-known personalities and organizations	Create co-branded products and promotional campaigns

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:.

• ASOS Digital Marketing Strategy 2024: A Case Study
• Mazda Marketing Strategy 2024: A Case Study
• Godiva Marketing Strategy 2024: A Case Study
• Foodpanda Marketing Strategy 2024: A Case Study

Nina Sheridan is a seasoned author at Latterly.org, a blog renowned for its insightful exploration of the increasingly interconnected worlds of business, technology, and lifestyle. With a keen eye for the dynamic interplay between these sectors, Nina brings a wealth of knowledge and experience to her writing. Her expertise lies in dissecting complex topics and presenting them in an accessible, engaging manner that resonates with a diverse audience.

Panasonic Marketing Strategy 2024: A Case Study

Volini marketing strategy 2024: a case study.

• Human Resource Management

The 2003 Cadbury India Worm Infestation

Related documents.

Add this document to collection(s)

You can add this document to your study collection(s)

Add this document to saved

You can add this document to your saved list

Suggest us how to improve StudyLib

(For complaints, use another form )

Input it if you want to receive answer

Friday | Aug 30 2024 |

BW Communities

When Crisis led to Consumer Safety: The Story of Cadbury

In the last quarter of 2003, just around the festival of Deepavali, some television channels flashed ‘breaking news’ – ‘Insects found in Cadbury’s chocolates’. Around the turn of the millennium, the era of 24X7 news channels had set in. This was one of the first occasions when such an established food brand was in the news for all the wrong reasons. Chocolate being kids’ favourite, and Cadbury being the market leader, the news created immense concern among parents. When the safety of an established food product is publicly doubted, it can create a crisis for the company. Indeed, consumers were deeply impacted, and Cadbury’s business was severely affected. So, did Cadbury’s chocolates really have insects in them? Was a multinational company established in 1824 in England no longer trustworthy? Genesis of the Crisis Every crisis has two sides of the story. Let me present both. While the media claimed that several customers found insects in Cadbury’s chocolates, during my interactions, the Cadbury’s Chairman shared the company’s version. A certain shop keeper in Mumbai who had apparently found an insect in a bar of Cadbury’s chocolate was the source of the crisis. The company believed that the bar may have been stored next to some flour or grains and the insect(s) might have crept into it. Instead of raising the matter with the company, the shopkeeper decided to make the matter public. Supposedly, the root of the problem was the shopkeeper’s disgruntlement with Cadbury. He had some personal grievances with the company staff about insufficient stocks and felt that this was the way to express his displeasure. So, he registered a complaint with the health inspector in the Government of Maharashtra. The October 6, 2003 Food and Drug Administration (FDA) Dept. lab report on ‘insect infestations’ in the Cadbury chocolate bar was positive for the presence of two dead and one live insect. Consequently, the relevant authorities called a press conference and blew up the whole issue before the media. FDA had already seized the chocolate stocks from Cadbury’s Talegaon plant. In its defence, the company released an elaborate clarification statement underscoring the high-quality manufacturing processes followed at its plants, and that the poor storage at the retailer’s end was responsible for the reported case of worms in its chocolates. The FDA did not buy the argument and blamed the company for its poor packaging, which it believed was part of the manufacturing process. In the argument and counter argument between the government agencies and Cadbury that followed, the latter lost sales to the tune of nearly 45 percent at the peak of the festival season. Proactive Crisis Management A crisis of this magnitude has the power to threaten the existence of a food company. Readers would recollect the recent case (May 2015) of Maggi Noodles when it was reported that the noodles had up to 17 times the permissible limit of lead content. This was followed by a nationwide ban on Maggi’s noodle products. It was a quarter later, in August 2015, when the Bombay High Court struck down the ban and questioned the procedure followed during the original tests. In Cadbury’s case, the fight was fought not in the legal courts but in the people’s court. At stake was the trust of three crore consumers who bought the company’s products every month giving it a 70 percent market share. To revive this eroded trust in the Cadbury brand and the safety of its products, the company decided on a multi-pronged strategy to bounce back with ‘Project Vishwas’. Consumer Education One of the key elements of Cadbury’s crisis management strategy was consumer education. Under Project Vishwas, it engaged with over 1,90,000 retailers that sold its products. The company proactively underscored Cadbury’s health conscious identity, and invited people to come and see its factories. When interested people came, including media, parents, and students, they were exposed to the rigorous system of quality checking followed on the premises before the products left the factory premises. The observers were convinced that there was nothing wrong in the manufacturing process and the factory ecosystem. The problem arose after the product left the factory. This helped convince customers and the media to some extent. New Packaging Having come face-to-face with a major crisis, Cadbury did not want to take any chances with consumer safety. It wanted to ring fence itself against likely problems in its wholesale and retail supply chain. Earlier, a Cadbury’s Dairy Milk bar used to be wrapped in a foil wrap, which was not sealed. The unsealed foil wrap was packed inside a paper which was open on both sides. This left the product vulnerable to mischief and mishandling. Cadbury decided to revamp the packaging of all its chocolate products. Through extensive discussions, it was decided that metallic poly-flow packaging would be most suitable to protect the product by completely sealing it. This nullified any chance of mismanagement at the retailer’s end. At a cost of over ₹15 crores, Cadbury imported machines that could heat seal the foil and achieve high standards of improvised packaging. This process also increased the cost of the product by about 15 percent. However, the company decided to absorb this expense, and did not hike the price of its chocolates. Cadbury’s Chairman Pal underscored the company’s conviction that the product must reach the consumer in the right condition, and if this costs additional money and substantial investment, it should be done. Constant Communication The highlight of Cadbury’s crisis management strategy was constant communication with the masses using the same platform that accentuated the crisis – media. In the consumers’ minds the image of Cadbury’s chocolates had been tarnished. It was natural for any parent to suggest to their children not to buy Cadbury’s chocolates. I recollect another crisis the company had faced a decade earlier when a Lucknow-based scientist claimed that his research revealed that there was ‘nickel’ in Cadbury’s chocolates. While the impact of media in 1993 wasn’t as loud as the 24X7 media of 2003. Yet, I remember my mother advising me (then studying in middle school) not to buy Cadbury’s chocolates! Parents are the biggest stakeholder in the purchase of products meant for kids. Cadbury had to address this vital stakeholder to win their confidence. In the first quarter of 2004, Cadbury increased its advertisement spending by over 15 percent. It roped in Bollywood superstar Amitabh Bachchan as its new brand ambassador. The immense popularity he enjoyed with the Indian masses helped the brand. His deep sonorous voice helped reassure the masses of the renewed measures taken by Cadbury for their and their kids’ safety and wellbeing. The outcome was slow yet positive. After six months of efforts, the demand for Cadbury’s chocolates started becoming normal. Key Learnings The consumers gave Cadbury another chance. Market studies indicated that consumers eventually considered the incident as a lapse and not an intentional betrayal of trust to harm consumers. Interestingly, public memory is short; especially for products that enjoy a strong emotional connect with target consumers. Cadbury’s chocolates had been a favourite since 1948 when its products first became available in India. Nearly two decades later, hardly anyone recollects that Cadbury faced a crisis with its core and most popular product. However, in the current scenario of managing risks and averting crises, Cadbury’s approach of addressing the crisis with a multi-pronged strategy deserves a mention and emulation. Some marketing and PR experts hold the company partly responsible for ignoring the risk to product safety due to inadequate packaging, which could have been proactively addressed much ahead of time, thereby avoiding a crisis with deep financial and brand ramifications. Is it desirable for companies to take such avoidable risks till a crisis emerges? In fact, the best way to avert crises, is to proactively address risks that could cause a crisis. A key learning from this episode is that a food and beverage company’s responsibility of product quality and safety does not end with the product leaving its factory. It continues till the product is consumed by the end-consumer. Hence, any product quality or consumer safety loopholes in the total value chain should be mapped and proactively addressed by the company.

Dr. Shashank Shah

Reverse Mentoring Is A Powerful Collaborator

The Indian Obsession With STEM

Financial Plans For A New Business

GenAI’s Reality Check

Anil Kejriwal's Story: A Testimony To Power Of Trust, Confidence, Determination

Bihar’s Economic Stagnation: A Call To Action

Subscribe to our newsletter to get updates on our latest news

Subscribe Now!

Article video.

Crisis communication. Case study: Cadbury worm controversy

• December 2020
• CC BY-NC-ND 4.0
• In book: 11th International Conference on Information Science and Information Literacy, The Role of Information in Services Provided to Innovative Users (pp.40-55)

• Universitatea Transilvania Brasov

• This person is not on ResearchGate, or hasn't claimed this research yet.

Discover the world's research

• 25+ million members
• 160+ million publication pages
• 2.3+ billion citations

• Layla AlSaqer
• Ronald D. Smith

• Batool Ahmmad Qaddomi

• Recruit researchers
• Join for free
• Login Email Tip: Most researchers use their institutional email address as their ResearchGate login Password Forgot password? Keep me logged in Log in or Continue with Google Welcome back! Please log in. Email · Hint Tip: Most researchers use their institutional email address as their ResearchGate login Password Forgot password? Keep me logged in Log in or Continue with Google No account? Sign up

When crisis led to consumer safety: The story of cadbury

In the last quarter of 2003, just around the festival of Deepavali, some television channels flashed ‘breaking news’ – ‘ Insects found in Cadbury’s chocolates ’. Around the turn of the millennium, the era of 24X7 news channels had set in. This was one of the first occasions when such an established food brand was in the news for all the wrong reasons. Chocolate being kids’ favourite, and Cadbury being the market leader, the news created immense concern among parents. When the safety of an established food product is publicly doubted, it can create a crisis for the company. Indeed, consumers were deeply impacted, and Cadbury’s business was severely affected. So, did Cadbury’s chocolates really have insects in them? Was a multinational company established in 1824 in England no longer trustworthy?

Genesis of the Crisis

Every crisis has two sides of the story. Let me present both. While the media claimed that several customers found insects in Cadbury’s chocolates, during my interactions, the Cadbury’s Chairman shared the company’s version. A certain shop keeper in Mumbai who had apparently found an insect in a bar of Cadbury’s chocolate was the source of the crisis. The company believed that the bar may have been stored next to some flour or grains and the insect(s) might have crept into it. Instead of raising the matter with the company, the shopkeeper decided to make the matter public. Supposedly, the root of the problem was the shopkeeper’s disgruntlement with Cadbury. He had some personal grievances with the company staff about insufficient stocks and felt that this was the way to express his displeasure. So, he registered a complaint with the health inspector in the Government of Maharashtra.

The October 6, 2003 Food and Drug Administration (FDA) Dept. lab report on ‘insect infestations’ in the Cadbury chocolate bar was positive for the presence of two dead and one live insect. Consequently, the relevant authorities called a press conference and blew up the whole issue before the media. FDA had already seized the chocolate stocks from Cadbury’s Talegaon plant. In its defence, the company released an elaborate clarification statement underscoring the high-quality manufacturing processes followed at its plants, and that the poor storage at the retailer’s end was responsible for the reported case of worms in its chocolates. The FDA did not buy the argument and blamed the company for its poor packaging, which it believed was part of the manufacturing process. In the argument and counter argument between the government agencies and Cadbury that followed, the latter lost sales to the tune of nearly 45 percent at the peak of the festival season.

Proactive Crisis Management

A crisis of this magnitude has the power to threaten the existence of a food company. Readers would recollect the recent case (May 2015) of Maggi Noodles when it was reported that the noodles had up to 17 times the permissible limit of lead content. This was followed by a nationwide ban on Maggi’s noodle products. It was a quarter later, in August 2015, when the Bombay High Court struck down the ban and questioned the procedure followed during the original tests.

In Cadbury’s case, the fight was fought not in the legal courts but in the people’s court. At stake was the trust of three crore consumers who bought the company’s products every month giving it a 70 percent market share. To revive this eroded trust in the Cadbury brand and the safety of its products, the company decided on a multi-pronged strategy to bounce back with ‘ Project Vishwas ’.

Consumer Education

One of the key elements of Cadbury’s crisis management strategy was consumer education. Under Project Vishwas, it engaged with over 1,90,000 retailers that sold its products. The company proactively underscored Cadbury’s health conscious identity, and invited people to come and see its factories. When interested people came, including media, parents, and students, they were exposed to the rigorous system of quality checking followed on the premises before the products left the factory premises. The observers were convinced that there was nothing wrong in the manufacturing process and the factory ecosystem. The problem arose after the product left the factory. This helped convince customers and the media to some extent.

New Packaging

Image:  Old Packaging in 1980s and 1990s

Having come face-to-face with a major crisis, Cadbury did not want to take any chances with consumer safety. It wanted to ring fence itself against likely problems in its wholesale and retail supply chain . Earlier, a Cadbury’s Dairy Milk bar used to be wrapped in a foil wrap, which was not sealed. The unsealed foil wrap was packed inside a paper which was open on both sides. This left the product vulnerable to mischief and mishandling. Cadbury decided to revamp the packaging of all its chocolate products. Through extensive discussions, it was decided that metallic poly-flow packaging would be most suitable to protect the product by completely sealing it. This nullified any chance of mismanagement at the retailer’s end. At a cost of over ₹15 crores, Cadbury imported machines that could heat seal the foil and achieve high standards of improvised packaging.

Image:  New Packaging from 2004

This process also increased the cost of the product by about 15 percent. However, the company decided to absorb this expense, and did not hike the price of its chocolates. Cadbury’s Chairman Pal underscored the company’s conviction that the product must reach the consumer in the right condition, and if this costs additional money and substantial investment, it should be done.

Constant Communication

The highlight of Cadbury’s crisis management strategy was constant communication with the masses using the same platform that accentuated the crisis – media. In the consumers’ minds the image of Cadbury’s chocolates had been tarnished. It was natural for any parent to suggest to their children not to buy Cadbury’s chocolates. I recollect another crisis the company had faced a decade earlier when a Lucknow-based scientist claimed that his research revealed that there was ‘nickel’ in Cadbury’s chocolates. While the impact of media in 1993 wasn’t as loud as the 24X7 media of 2003. Yet, I remember my mother advising me (then studying in middle school) not to buy Cadbury’s chocolates! Parents are the biggest stakeholder in the purchase of products meant for kids. Cadbury had to address this vital stakeholder to win their confidence. In the first quarter of 2004, Cadbury increased its advertisement spending by over 15 percent. It roped in Bollywood superstar Amitabh Bachchan as its new brand ambassador. The immense popularity he enjoyed with the Indian masses helped the brand. His deep sonorous voice helped reassure the masses of the renewed measures taken by Cadbury for their and their kids’ safety and wellbeing. The outcome was slow yet positive. After six months of efforts, the demand for Cadbury’s chocolates started becoming normal.

Key Learnings

The consumers gave Cadbury another chance. Market studies indicated that consumers eventually considered the incident as a lapse and not an intentional betrayal of trust to harm consumers. Interestingly, public memory is short; especially for products that enjoy a strong emotional connect with target consumers. Cadbury’s chocolates had been a favourite since 1948 when its products first became available in India.

Nearly two decades later, hardly anyone recollects that Cadbury faced a crisis with its core and most popular product. However, in the current scenario of managing risks and averting crises, Cadbury’s approach of addressing the crisis with a multi-pronged strategy deserves a mention and emulation. Some marketing and PR experts hold the company partly responsible for ignoring the risk to product safety due to inadequate packaging, which could have been proactively addressed much ahead of time, thereby avoiding a crisis with deep financial and brand ramifications. Is it desirable for companies to take such avoidable risks till a crisis emerges? In fact, the best way to avert crises, is to proactively address risks that could cause a crisis.

A key learning from this episode is that a food and beverage company’s responsibility of product quality and safety does not end with the product leaving its factory. It continues till the product is consumed by the end-consumer. Hence, any product quality or consumer safety loopholes in the total value chain should be mapped and proactively addressed by the company.

Blog Author: Dr. Shashank Shah, SAI Fellow ’17, Harvard University, IRM India Affiliate Advisory Board Member.

This article was first published in ‘business world’ issue dated august 9-23, 2020..

When crisis led to environmental responsibility: The story of Hindustan Unilever

Consumer risks in e-commerce

You may also like.

Har Ghar Suraksha: A Comprehensive Campaign Suggestion for Women Safety Risk Management in India

How the Secret Service in the USA Operates as the Risk and Crisis Management Function for the President

Blur Music Band – Risk Management Lessons for Music Groups

Leave a reply cancel reply.

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

More in Risk 360

Developing a Robust Fraud Risk Management Policy for Indian Banks and Non-Banking Financial (NBFC) Companies

How this FMCG Company Used Artificial Intelligence (AI) to Enhance Its Enterprise Risk Management Function

Wake up — Why Risk Factors in the DRHPs of Indian Companies Deserve More Attention from Investors

Third Party Risk Management – Catalyst for Sustainable Growth

 15 Tips to Ace an Enterprise Risk Management Interview

10 Careers for Commerce Students after Passing IRM’s Global Enterprise Risk Management Exams / Qualifications

10 Careers for Engineering Students after Passing IRM’s Global Enterprise Risk Management Exams / Qualifications

• Future of risks 6 Articles
• Risk 360 111 Articles
• Startups & SMEs 7 Articles
• Chief Risk Officers 6 Articles
• Careers 46 Articles

Lost your password?

• Chief Risk Officers
• Future of risks
• Startups & SMEs

Subscribe Us

Join our newsletter.

Enter your email to receive our newsletter.

Latest Posts

Marketing Strategy of Cadbury: How it has mastered the art of spreading sweetness

Learn about cadbury's iconic marketing strategy and advertising campaigns. read how cadbury aces the 4ps of marketing mix - product, price, promotion & placement..

• overview#goto" data-overview-topic-param="creating-a-chocolate-empire">Creating a chocolate empire
• overview#goto" data-overview-topic-param="the-rise-of-cadbury-house-in-india">The Rise of Cadbury House in India
• overview#goto" data-overview-topic-param="logo-the-sweet-badge-of-honour">Logo: The Sweet Badge of Honour
• overview#goto" data-overview-topic-param="target-audience">Target Audience
• overview#goto" data-overview-topic-param="marketing-mix-of-cadbury">Marketing mix of Cadbury
• overview#goto" data-overview-topic-param="strategies-that-define-cadbury">Strategies that Define Cadbury
• overview#goto" data-overview-topic-param="noteworthy-marketing-campaigns">Noteworthy Marketing Campaigns
• overview#goto" data-overview-topic-param="strategies-to-steal-from">Strategies to steal from

The British multinational confectionery Cadbury has created magnificent confectionaries for almost 200 years, making it every chocolate lover's paradise. It is owned by Mondelez International and is the second-largest confectionery brand in the world, behind Mars, followed by its nearest competitor Nestle, Ferrero, and Miji. Cadbury offers something to satiate any sweet craving, from their well-known Dairy Milk chocolates to other confectionery treats like cakes, biscuits, and beverages.

However, how does it manage to operate in over 50 countries and employ nearly 50,000 people? How did Mondelez India Foods Private Limited report a 16% year-on-year jump in FY22 revenues to ₹9,296 crore ?

Read on as we evaluate how Cadbury's marketing strategy adds a little sweetness to our lives every day.

How cocoa essence helped create a chocolate empire

A dream and a passion for chocolate marked the beginning of Cadbury's history. To create chocolate that anybody might enjoy, Quaker John Cadbury who sold tea, coffee, and drinking chocolate founded his company in Birmingham, South west England, in 1824.

Starting with a humble pestle and mortar, he ground cocoa beans to make a chocolate drink that was nothing short of heavenly. As the business grew, John Cadbury moved to a larger factory on Bridge Street and began to craft chocolate bars, marking the beginning of a chocolate revolution.

Benjamin, John's brother, soon joined the company and helped it grow by introducing new products and flavors. Cadbury company launched its first chocolate bar in 1849.

Source: Telegraph

Following the incorporation of their company as "Cadbury Brothers Limited" and the realization that business was booming, the brothers decided to build a new factory named Bournville Estate in the Birmingham suburb of Bournville in 1866 to better the lives of its employees. The factory offered housing and entertainment, ensuring that the chocolate was not only delicious but also produced ethically.

Source: Prints and ephemera

Cadbury was one of the big three British confectionery manufacturers throughout much of the 19th and 20th centuries. In 1969 Cadbury merged with Schweppes brand — an American beverage business. It was known as Cadbury Schweppes plc until 2008, only to be acquired by Kraft foods inc. in 2010. Cadbury is now owned by Mondelez International.

Cadbury has expanded over the years by buying other businesses, releasing new products, and entering new markets. Currently, it is one of the largest sectors in the global confections market and is renowned for its excellence and innovation.

In 1990, Cadbury introduced Cadbury World. It offers visitors the chance to learn about the history of Cadbury chocolate and see how it is made.

The Rise of Cadbury House in India

When Cadbury, the pride of Mondelez International, made its foray into India in 1948, it brought some sweetness to the nation by establishing its corporate headquarters in the bustling metropolis of Mumbai, Maharashtra.

Following the initial import of its well-known chocolates, Cadbury India quickly gained a monopoly in the market, with Cadbury's chocolate confectioneries portfolio accounting for an value share of 70%. Stunningly, the well-liked Dairy Milk brand alone held 40% of the whole Indian chocolate market.

As the years passed, Cadbury India's confectionery company expanded its selection of products in India by introducing several delectable Cadbury products like biscuits, candies, and beverages, solidifying its position as a household name. With Cadbury products like the beloved Cadbury Bournvita, Gems, 5-star, Eclairs, Cadbury Dairy Milk Silk, Crispello, Tang, and Oreo in addition to the traditional Dairy Milk, Cadbury has come to symbolize nostalgia for many Indians.

In 2021, the maker of Cadbury Dairy Milk reported a revenue of $1.2 billion in India. Mondelez International aims to push up India revenue to $2 billion by 2030.

Logo: The Sweet Badge of Honour

The creation of the Cadbury logo shows the company's dedication to not just producing high-quality chocolate products but also to develop a visual identity that captures its rich heritage and commitment to excellence.

The initial logo, which included a stylized representation of a cocoa tree, made a subtle reference to the company's history in the chocolate industry. But the brand's determination to stay current was evident in the more modern and abstract style that came next, being inspired by William Cadbury's sign.

Source: Logos World

The current logo uses a strong typeface against a vibrant purple background to represent the brand's simplicity, accessibility, and timelessness.

Cadbury company also released a limited-edition version of the logo in its gold form, which is only used for the priciest and most exclusive items and promotions. The conventional purple logo is no longer the only option. The golden version of the logo conveys exclusivity and elegance, elevating the already well-known Cadbury brand to new levels of sophistication. It looks like an encrusted badge of honor.

Target Audience

Cadbury's customer base is diverse, ranging from the smallest candy enthusiasts to the pickiest chocolate connoisseurs. The company's sumptuous treats, which range from conventional chocolate bars to lavish chocolate boxes, are enjoyed by people of all ages. Whether you're looking for a tasty treat to enjoy on your own or a gift to give to loved ones, Cadbury India has something to meet every occasion.

Marketing mix of Cadbury

Cadbury has a recipe for success that is as sweet as its treats. The secret ingredient? A well-crafted marketing mix that tantalizes the taste buds of chocolate lovers everywhere. From the delectable products to the irresistible prices, to the convenient distribution channels, and the alluring Cadbury promotions, Cadbury's marketing mix is a symphony of deliciousness. Each element of the Cadbury marketing mix is carefully crafted to create a cohesive and irresistible experience for the customer.

Here's a closer look at how the Cadbury marketing mix makes every day a little sweeter:

The Cadbury product collection is as diverse as a box of chocolates, offering something for every sweet tooth to enjoy. All ages can enjoy their chocolates, which range from classic Cadbury Dairy Milk bars to the decadent delight of Creme Eggs. They also provide a vast variety of candies, gum, and pastries that will take you on a sweet experience.

The broad product list includes several Cadbury items, such as Bournville, Bournvita, Tang, Crunchie, Cadbury Dairy Milk, Dairy Milk Fruit & Nut, Caramel, Cadbury Five Star, Cadbury Dairy Milk Silk,Perk, BournVita, Bytes, Oreo, Crispello, Eclairs, etc which gives a unique take on the original Cadbury flavor.

Source: Cadbury

Want to reward yourself with a holiday treat? Cadbury India has you covered with special chocolate gifts that are suitable for any occasion, including Cadbury Celebration boxes for Diwali and Rakshabandhan, Easter eggs, Christmas selection boxes, and more.

Cadbury's product mix provides a range of options tailored to different market segments, making it a veritable gold mine of delectable treats just waiting to be discovered. Mondelez India expanded its Choco-bakery segment recently with its chocobake cookies.

Source: Instagram

Cadbury India offers a tempting selection of goods at various pricing points. Cadbury's pricing strategy is a delicate dance between production costs, market competitiveness, and consumer desire. It offers everything from affordable, mass-market options to luxury experiences.

While the business's more luxury products, like gift boxes and expensive dark chocolate bars like Bournville or Cadbury temptations, Cadbury Dairy Milk Silk tempts those looking to indulge. Its primary range of chocolate confectionery like Eclairs, Cadbury dairy milk, and 5-Star fulfills the sweet tooth of customers on a modest budget. But that is not the end of Cadbury's mouthwatering symphony. In addition, a wide selection of expertly made cookies treats, and beverages are offered, satisfying a range of tastes and preferences.

Each Cadbury product, including Bournvita, Tang, Oreo, Dairy Milk Silk, and Dairy Milk chocolate, offers a distinctive flavor sensation at a price that has been carefully matched to the target consumer and the product's ingredients.

Cadbury India constantly evaluates its pricing strategy to make sure it keeps its position as the market leader in the chocolate confectionery business while also remaining competitive, which results in every piece of chocolate being delectable and fulfilling.

By cleverly designing a global distribution strategy, Cadbury ensures that its delicious chocolate delicacies are available in every corner of the globe — urban and rural areas. The company's primary markets include the UK, Ireland, Canada, India, Australia, New Zealand, South Africa, and a few Caribbean countries, but thanks to outposts set up there through subsidiaries and licenses, its reach extends well beyond these borders.

The corporation has production facilities in several countries, including the UK, Poland, Russia, India, and Australia. In India, it has manufacturing facilities in Thane, Induri (Pune) and Malanpur (Gwalior), Hyderabad, Bangalore, and Baddi (Himachal Pradesh) and sales offices in New Delhi, Mumbai, Kolkata, and Chennai.

The products of the corporation have a distinct flavor because of each of their preferences.

Retail locations

Cadbury chocolate bars are available in almost all supermarkets, corner shops, and grocers.

Source: Economic Times

Online Sales

Cadbury products are freely accessible on their website and other e-commerce sites for individuals who prefer the convenience of online shopping.

To ensure that its chocolate bars reach every nook and crevice of the market, Cadbury India also makes its products available to wholesalers and distributors, who serve as the industry's gatekeepers.

Direct sales

Cadbury products are also offered through company-owned establishments and vending machines for individuals who enjoy a decent vending machine experience.

Cadbury ships its goods to a large number of nations to make sure that everyone can enjoy a taste of Cadbury chocolate wherever they may be.

The distribution strategy used by Cadbury is a smart mix of many outlets. The brand stands out and establishes itself as a true worldwide leader in the sector thanks to its constant dedication to making its chocolates accessible to chocolate lovers from urban and rural areas.

As innovative as Cadbury's selection of chocolate flavors is, so to is Cadbury's marketing strategy. To make sure that everyone is continually thinking about their delicious treats, Cadbury India uses a variety of strategies from online to offline campaigns.

Advertising

Cadbury uses a range of advertising techniques to spread the word about its products. They ensure that their chocolate is always in the spotlight by featuring their recognizable Dairy Milk bars in print and television promotions.

Source: Business Insider India

They also take advantage of internet channels to attract younger clients and create a sense of brand community. One successful example is Cadbury's "Tastes Like This Feels" campaign, which used heartwarming commercials to show how chocolate can bring people together to create an emotional connection with consumers.

Public relations

Cadbury uses PR to generate positive press and bolster their brand. To develop their brand and establish relationships with their target demographic, they have sponsored events such as music festivals, sporting competitions, and philanthropic endeavors.

Runners received free chocolate bars as part of Cadbury's partnership with the London Marathon to create positive buzz and boost brand loyalty while Cadbury Fuse served as the 2023 Tata Mumbai Marathon's official snacking partner.

Source: SportsMintMedia

Sales Promotion

Cadbury uses a range of sales promotion strategies, such as discounts, coupons, and competitions, to increase sales and entice new customers. They have developed programs, such as "Buy one, get one free" and "Win a vacation to Cadbury World," to tempt customers to indulge in several chocolate sweets.

Social media marketing

The biggest chocolate manufacturer in the world, Cadbury, is aware that the secret to their success on social media is providing a delectable and entertaining experience for their audience. On a variety of social media platforms, such as Facebook, Twitter, Instagram, and YouTube, they post enticing images and videos of their delectable chocolates.

By introducing new products made of chocolate, running contests, and hosting promotions, Cadbury keeps their customers yearning for more.

But Cadbury goes above and beyond with their social media approach to foster a sense of community around their brand in addition to just selling chocolate. They ensure that their clients feel like they are a part of the Cadbury family by responding to comments and messages and conducting interactive initiatives.

Cadbury's social media marketing ensures that engagement and excitement are maintained year-round for both the brand and its followers. Apart from other social media platforms, YouTube Channel —YouTube Cadbury India is the primary medium for executing marketing campaigns.

However virtual presence is one of the pain points Cadbury India needs to work on to stay ahead of the competition.

Strategies that Define Cadbury

Cadbury, the chocolate connoisseur, has a recipe for success that is as rich and diverse as the chocolate varieties it offers. With a strong sense of brand identity, innovative product development , and great emotive marketing, Cadbury possesses all the elements needed for a successful strategy. What sets Cadbury apart, though, is its ability to forge partnerships that give its marketing strategy a competitive edge.

Strong brand identity

Cadbury's famous purple and white logo represents taste and quality. Chocolate lovers have grown to appreciate and believe in this indulgence promise.

Innovative product development

Cadbury's R&D team is similar to Willy Wonka's chocolate factory in that it constantly tries out new flavors and packaging to create a unique and exciting chocolate experience.

Emotional marketing

Cadbury understands that chocolate is more than just a treat; it's an experience. Cadbury has been able to connect with customers on a deeper level through storytelling and emotional appeal, resulting in loyal fans.

CSR (Corporate Social Responsibility)

Cadbury is conscious of the luxury and responsibility that comes with managing a responsible business. Due to its efforts in sustainable and fair trade, Cadbury has been able to build a strong reputation and form stronger relationships with its customers.

Partnership

Cadbury is aware that success involves more than just one person—it demands a team. Through partnerships with other businesses, Cadbury India has been able to access a larger market and provide consumers with unique and fascinating chocolate experiences. Cadbury partnered with an NGO & the Zee Network to say thanks to the unsung heroes of the lockdown. Cadbury India also partnered with Reliance jio to launch an initiative called ' The Wrapper That Gives .' It also has partnered with Hindustan Unilever Limited.

Marketing Campaigns that helped Cadbury become a part of Indian audiences' celebrations:

Since its debut television advertisement in 1955 to the prized Grand Prix Lion winner for its famous Gorilla campaign at the 2008 Cannes International Festival of Creativity, Cadbury has been known for its meticulously produced and emotionally stirring marketing campaigns. Each advertisement is carefully designed to increase sales and solidify Cadbury's reputation among customers.

Here are successful Marketing campaigns of Cadbury India's from Kuch meetha ho jaaye to Kiss Me jingle.

Kuch Meetha Ho Jaaye" Cadbury marketing campaign

To capitalize on people's craving for sweet moments and festivities, Cadbury India's 2017 "Kuch Meetha Ho Jaaye" campaign used a subtly effective call to action. The lovely campaign successfully combined indulgence, celebration, and the emotive power of sweets to deliver a strong and enduring brand message.

Source: Facebook

Cadbury India did this by combining television advertisements, digital marketing, and carefully chosen promotions and events. It emphasized the emotional connection customers have with Cadbury products, making them the go-to option for satiating sweet cravings. It also highlighted how versatile Cadbury's products are in elevating special occasions, from small events to festivals.

How Far Will You Go for Love

2010 saw the premiere of Cadbury India's "How Far Will You Go For Love" campaign. This astute dairy milk campaign aimed at appealing to the core of human emotions. It challenges consumers to think about the lengths they would go to display their love for others and portrays Cadbury's chocolate goods as potent expressions of devotion through moving advertising, events, and promotions.

To create a strong and durable brand message that engages clients emotionally, the campaign, which was specifically created for millennials, combines nostalgia, romanticism, and longing. It is endorsed by Kartik Aryan, a well-known figure in the young culture, and uses the hashtag #PopYourHeartOut.

Kuch khaas hain Zindagi Mein

When Cadbury launched this ad campaign back in the 90s, it was nothing short of revolutionary. Picture it: A cricket match, a player smashes the ball out of the park, and in that moment of pure elation, a young woman breaks out into an impromptu dance, chocolate bar in hand. It was a scene that shattered stereotypes and defined a new era of chocolate appreciation.

Source: Exchange4media

The lovely campaign was such a hit that Cadbury recently brought it back to life, this time with a twist. A female cricketer hits a six, and a male spectator runs onto the field, dancing with joy. And all the while, the iconic slogan "Kuchh Khaas Hai Zindagi Mein" plays in the background, perfectly capturing the unrestrained love and joy of the moment. This ad campaign by Cadbury India was a game-changer, a true masterpiece of advertising.

Cadbury's Oreo Biscuit: Stay Playful at Home

Amid the Covid-19 pandemic's volatile environment, Cadbury's Oreo India Marketing campaign provided a different and welcome perspective. The campaign's slogan was "Make Way for Play," and its target audience was young children. The message of being safe and at home, which was expertly timed and meticulously planned, provided a sense of optimism and hope during a difficult period.

Source: Digitas

Cadbury Dairy Milk Campaign: Kiss Me Jingle

Advertising jingles have the potential to be a potent instrument for deeply ingraining a brand in consumers' minds when used well. Cadbury brand has provided an instance of this strategy with its enduring and alluring "Kiss Me" jingle. A marketing campaign for the delectable Cadbury Dairy Milk Silk chocolate initially featured a catchy melody.

Since then, it has grown to be identified with the business and has made countless additional appearances in ads. Due to the song and the marketing campaign, Dairy Milk Silk chocolate gained a lot of popularity, and its allure has persisted throughout time.

Strategies to steal from Marketing Strategy of Cadbury:

Here are some major takeaways marketers and business owners can have from the Cadbury marketing strategy:

A brand that warms the heart

The major objective of the Cadbury marketing strategy is to establish a strong emotional bond with its customers. They are adept at using alliances, sponsorships, and focused advertising to make their brand appear like a cozy embrace on a frigid day. Developing strong emotional bonds with clients could be a very successful strategy for boosting brand awareness and loyalty.

A taste of the immersive

Cadbury uses experiential marketing to provide its customers with a first-hand encounter with the brand. Through the immersive experiences they provide, customers can engage with the business uniquely and memorably. Experiential marketing strategy can create original and memorable brand experiences for customers.

A buffet of sweet treats

Cadbury's product mix is as diverse as a box of chocolates, with something for every sweet tooth. From classic Dairy Milk bars to the gooey, delicious goodness of Creme Eggs, they cater to all tastes. Offering a diversified product mix can help to cater to different consumer preferences and tastes, increasing sales and market share.

Pricing that's just right

Cadbury has a dynamic pricing strategy that is tailored to different market segments. They provide a combination of skimming, penetration , price discrimination, and bundle pricing to make sure that everyone can indulge in their delectable pleasures. A dynamic pricing approach might help you reach out to different market segments while remaining profitable.

Always within reach

Because of the company's extensive network of distribution channels, which is as extensive as its chocolate bars, Cadbury chocolate is always readily accessible. Retail establishments, online sales, wholesale, direct sales, and export are all ways to get products. Having a wide distribution network can increase the availability of products and make it more convenient for customers to purchase.

Promotion that's hard to resist

Cadbury's marketing strategy is equally inventive as its variety of chocolate flavors. They employ different marketing strategies, such as direct marketing, personal selling, sales promotion planning, marketing campaigns, and public relations, to make sure that everyone is constantly thinking about their delectable delights. Brands may raise their awareness and boost sales by developing innovative and captivating promotion techniques.

Quality and innovation at the core

Cadbury's marketing and product activities reflect the excellence and innovation for which the company is renowned. This is evident in their commitment to using products from ethical and sustainable sources, as well as in their constant introduction of fresh goods and flavors. Setting innovation and quality as top priorities can help a business stand out from the competition and earn a reputation for excellence.

In closing, the best way to describe Cadbury's marketing strategy is as a masterful blend of brand development, nostalgia, and innovation. Cadbury has been effective in building familiarity and trust with its target audience by leveraging the power of indulgence and commercial themes that evoke nostalgia.

The strategic partnerships that Cadbury has developed with important parties, like suppliers and retailers, have helped to strengthen its position as the market leader in the global confectionery industry. The Cadbury marketing strategy is a fascinating case study for the marketing sector because of the convergence of all these factors. To get your foot in the snacking market you can also go through Dunkin Donuts marketing strategy.

• popover#mouseOver mouseout->popover#mouseOut" data-popover-translate-x="-25%" , data-popover-translate-y="-220%"> Copy link
• bottom-bar#toggleTagsSection"> popover#mouseOver mouseout->popover#mouseOut" data-popover-translate-x="-25%" , data-popover-translate-y="-220%"> Copy Link
• bottom-bar#toggleTagsSection">

You'll love these articles too!

Co-founder at Flexiple, buildd & Remote Tools ($3 million revenue, bootstrapped)

Samsung's Marketing Strategy: How Samsung became a Pioneer in the Electronics Industry despite all odds

Learn about Samsung's iconic marketing strategy and advertising campaigns. Read how Samsung aces the 4Ps of marketing mix - Product, Price, Promotion & Placement.

Co-founder & CEO at Flexiple ($3mn+ revenue, bootstrapped) & buildd.co | Helping Startup...

How Does Telegram Make Money

Learn how Telegram makes money. Gain vital lessons from this deep dive article to grow your business.

Monster Energy Marketing Strategy: How Monster become a market leader by 'Unleashing the Beast'?

Learn about Monster's iconic marketing strategy and advertising campaigns. Read how Monster aces the 4Ps of marketing mix - Product, Price, Promotion & Placement.

• Select language
• Español
• Global Brands
• Solutions by industry
• Technology licensing
• Sustainability
• Technology overview
• Adhesives & sealants
• Agriculture
• Building & construction
• Compounding
• Consumer products
• Healthcare & medical
• Hygiene & personal care
• Industrial applications
• Synthetic base stocks
• Branched higher olefins
• EPDM rubber
• Higher alcohols
• Linear alpha olefins (LAO)
• Plasticizers
• Polyethylene
• Polymer modifiers
• Polyolefin plastomers & elastomers
• Polypropylene
• Solvents & fluids
• Transformer oils
• Thermoset systems
• Benzene alkylation
• Renewable fuels
• Conventional fuel production
• Gas treating
• Lubes production
• Resid conversion
• Methanol to gasoline technology
• Xylenes production
• Technical data sheets
• OneConnect | Customer portal
• Product selector
• Safety data sheets
• Subscription center
• eBusiness services
• Value chain collaborations

Case study | Cadbury Australia collaboration with Amcor leverages Exxtend™ technology to further circularity goals

As Australia’s most trusted food and beverage brand, Cadbury needed to ensure its packaging met consumer expectations for performance, safety, and product appearance. Teaming up with Amcor and ExxonMobil, Cadbury will source approximately 1000 tonnes of certified-circular PP leveraging ExxonMobil’s Exxtend™ technology for advanced recycling.

Share {prodNameLabel} with a colleague

By clicking on Send you agree to terms and conditions and our privacy policy .

How would you rate the content on this page?

SIMCON Blog

Simcon- simsree consulting club, cadbury : case study analysis.

Introduction to Case

Cadbury is a brand which almost everyone knows. Even after completion of more than 100 years, the brand is into hearts of many people & it also leaves a significant mark amidst all the competition. Cadbury stands tall in food product sector. Cadbury is world’s leader in chocolates and it is also one of the topmost FMCG brands in India. Cadbury decided to enter Indian market in 1948. Cadbury India began its operations in India by importing chocolates. On 19 th  July 1948 Cadbury was incorporated in India. Cadbury has a share of over 67% in the market, which is the highest Cadbury brand share globally. Cadbury now has 5 manufacturing units all over India. Cadbury operates in India with following categories of products: Chocolate, Confectionery, Beverages, Biscuits and Candy.Cadbury was performing very well since its incorporation in India But, suddenly in 2003 Cadbury came across a problem of worms.

In 2003, just a month before Diwali few instances of worms in its Dairy Milk Bars were reported in Maharashtra. In eight outlets across Maharashtra worms were found. In October 2003, customers in Mumbai complained about finding worms in Cadbury Dairy Milk Bars.

Problems Faced by Cadbury:

When these worms were found in some of the dairy milk bars, Maharashtra Food and Drugs Administration responded quickly to this case and it seized the stocks of chocolate bars which were manufactured in Cadbury’s Pune Plant.

Cadbury in defense issued a statement where it mentioned that problem of worms was not at the manufacturing stage but the problem arose due to poor storage facility by the retailers.

FDA denied the statement made by Cadbury. FDA Commissioner Uttam Khobragade came up with a statement saying “It was presumed that worms got into it at the storage level, but then what about the packing – packaging was not proper or airtight, either ways it’s a manufacturing defect with unhygienic conditions or improper packaging.”

Then there were many allegations and counter allegations between Cadbury and FDA. Due to this event reputation of Cadbury was hampered. Cadbury sales went down by 30% which they had expected to increase by 15% due to negative publicity.

For the first time, Cadbury’s Advertisements went off air for one and a half months after the Diwali due to this controversy

Recovery Strategy:

Project Vishwas:

Cadbury was losing on its sales and also reputation was being hampered. So, recovering from this type of situation was a challenge for Cadbury. In the month of October only Cadbury launched Public Relations (PR) campaign ‘Vishwas’ which was an education initiative covering 190,000 retailers in key states.

Project Vishwas , a three-pronged program that addressed the trade, consumers, media and employees. The project incorporated the following measures:

• A retail monitoring and education program was launched in which quality checks at over 50,000 retail outlets and educated 190,000 wholesalers and retailers was done regarding storage requirements.
• A press ad regarding ‘Facts about Cadbury’ was also published by Cadbury nationally in 55 trade publications which were about channel members taking remedial measures in the company.
• Posters and leaflets on the issue were also distributed to retailers, encouraging them to share them with consumers.
• Cadbury also linked the trade with response cell through a toll-free number and an email id to let them contact the company directly.
• The point-of-view of a company was explained to media, media was also given updates about actions initiated by the company, and encouraged to share them with consumers.
• The company instituted a media desk and diligently answered every media query, friendly or not. The company’s managing director urged media to assure consumers that Cadbury was safe to eat, but that consumers exercise the usual care in purchasing a chocolate that they exercise in purchasing a food item.
• Furthermore, it also promised to implement packaging changes within two months to ensure against poor storage. Cadbury’s MD and key spokespersons had one-to-one sessions with 31 media editors as part of an ‘Outreach’ program initiated in November 2003.

For Employees

• Employees were also briefed about actions taken through meetings with senior managers and email updates from the MD.

Change in Packaging:

January 2004, the company launched a new double packaging that was able to wrap even the smallest 13 gm chocolate in an aluminum foil, heat-sealed for complete protection from all sides and further encased in a poly flow pack. The over-engineered pack, the first of its kind in India, cost a lot to a company, but fulfilled the company’s promise to consumers and media. By investing up to Rs 15 crore (Rs 150 million) on imported machinery, Cadbury’s revamped the packaging of Dairy Milk. The metallic poly-flow was costlier by 10-15 per cent, but Cadbury didn’t hike the pack price.

The new packaging was launched in a media conference.  In a conference comparison kits were distributed. These kits were useful in comparing old packs and new packs. A video with packaging and factory shots for television coverage was also launched.

  Ad Campaign:

Just after changing packaging Cadbury roped in Amitabh Bachchan as a brand ambassador. From the month January to March 2004, Cadbury came up with a strong Ad campaign which helped them to get back the consumer confidence. During this period Advertising expenses went up by 15% but it really helped Cadbury to get back its reputation.

Current Situation:

After that Incident Cadbury now takes great care of all the products they have. Cadbury is currently leading the market in chocolates segment. Market share of the Cadbury Dairy Milk is around 35% in India.  Cadbury has not faced any controversy related to products after that incident.

References:

http://www.rediff.com/money/2006/dec/24cad.htm

http://articles.economictimes.indiatimes.com/2003-10-16/news/27521373_1_bharat-puri-cadbury-india-cadbury-products

Share this:

Related posts.

Cadbury Brand Analysis

Oreo : Case Study Analysis

Pulse Candy – Brand Analysis

Leave a comment cancel reply.

• Already have a WordPress.com account? Log in now.
• Subscribe Subscribed
• Copy shortlink
• Report this content
• View post in Reader
• Manage subscriptions
• Collapse this bar

             

MBA Knowledge Base

Business • Management • Technology

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.

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’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.”

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

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

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.

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.”

Related posts:

• Case Study: Cadbury Crisis Management (Worm Controversy)
• Defenses Against Takeover Bids – Anti Takeover Strategies
• Case Study: Competitive Advantage of Boeing
• Case Study: Sony’s Business Strategy and It’s Failure
• Case Study: Google’s Quest for Competitive Advantage
• Case Study: An Analysis of Competitive Advantages of Honda Corporation
• Case Study: Qantas Crisis
• Case Study: The Business Strategy of Apple
• Case Study: Restructuring Process of Volkswagen
• Case Study: Pfizer’s Strategy Analysis

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Kabinet Tower, Surabaya JIn. Mayjen Yono Soewoyo AK 2 no.27, Surabaya, Indonesia 60256

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.

Read More : 9 Burger King Marketing Strategy – Case Study

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

Related posts.

Decoding the Secrets of Loreal Marketing Strategy

• July 30, 2024

Lays Marketing Strategy A Full Case Study

• July 27, 2024

Unveiling the Secrets Lululemon Marketing Strategy

• July 24, 2024