Cadbury Business Model, Successfully Dominating Dessert Market Since 1824

When one mentions ‘Cadbury‘, it’s almost certain that mouths water, memories flood back, and an indescribable sense of nostalgia takes hold. But beyond the delicious treats that dance on our taste buds, there lies a riveting tale of Cadbury business model so powerful, it has dominated the dessert market for almost two centuries.

Established in the bustling streets of Birmingham in 1824, Cadbury has not just survived but thrived, adapting to changing tastes, technologies, and market dynamics. Dive with us into the rich and creamy history of Cadbury’s business prowess, and discover how a humble cocoa bean transformed into a global empire of sweetness.

Cadbury Brand Revenue Model

By 1930, Cadbury was the 24th largest British Manufacturing Company as measured by the estimated market value of capital. also, due to large-scale production Chocolate ceased to be a luxury product, and became affordable to the working classes for the first time. By the mid-1930, 90% of the British population could afford to buy Chocolates.

In 1938, Cadbury Roses were introduced, which has become a very popular Christmas and mothers day gift. The Bournville Factory, where it was produced, was surrounded by gardens, and roses were one of the most popular flowers of that time. Hence, the name of this assortment. During World War II, parts of the Bournville factory were turned over to war work, producing milling machines and seats for fighter aircraft.

The company Mondelez India ( Cadbery ) has earned a total revenue of about ₹9,296 crore for year 2022. Its product range is quite large, and is classified according to the seasons, and are varied according to the sales in each country. Some of its products are based on the occasion of festivals, such as Christmas.

The Cadbury company is associated with a variety of products, such as:

• Bournville
• Crunchie
• Caramel Cake Bars
• Cadbury Dairy Milk
• Dairy Milk Fruit & Nut
• Fruit Sundae
• Caramel
• Cadbury Five Star
• Perk
• BournVita
• Oreo
• Blackcurrant Mini Rolls
• Brunch Hazelnut, etc. among the huge product list.

These products have a huge customer base and are available all over the world. Its distribution channel has a good hold on the global market, and the company caters its products to a huge customer base, which brings huge profit.

Cadbury Business Model & Product Marketing

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.

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 benefits them in the bst ways.

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

The corporation has production facilities in several countries, including countries like 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.

Market Expansion

I recall only until about two decades ago, Cadbury Dairy Milk was targeted purely at children. The commercials at the time used to always feature parents giving the chocolate to their kids. Since then, the Cadbury guys have consistently (and successfully) broken the age barrier, and the brand is now pitched for different age groups. And in terms of consumption occasions, they have been giving the traditional sweet or what we call as mithai a serious run for its money.

The latest attempt is to make Cadbury Dairy Milk a substitute for dessert. To satisfy the craving for a post-dinner dessert, the space which, in typical Indian households, is usually occupied by ice creams, custards, gulab jamuns, jalebis, kheer, etc. Kuchh meetha post dinner is a huge market.

Cadbury Competitive Analysis

Lets dive into some competitors of cadbury and see what makes this particular brand different:

Nestle

In terms of product offerings, both companies have similar products, but Cadbury has a much larger range of chocolates and confectionery products. Cadbury also produces a variety of delicious treats, from Dairy Milk bars to Flake bars, that are not available from Nestle.

Mars

Cadbury chocolates are made from rich cocoa and very hygienically processed to give the chocolate mouth-watering taste along with enhancing the shelf life of the chocolates. No other chocolate manufacturer including Mars has the capacity to offer such a fine quality of chocolate at a reasonable price.

Hershey’s

Cadbury chocolate is traditionally made through a process known as “conching”, while Hershey’s uses a process called “panning”. Both brands produce delicious chocolate, so it really comes down to personal preference. Hershey owns the rights to manufacture and sell Cadbury bars in the United States.

Cadbury Challanges and Controversies

1. In October 2003, just a month before Diwali, customers in Mumbai complained about finding worms in Cadbury Dairy Milk chocolates. Quick to respond, the Maharashtra Food and Drug Administration seized the chocolate stocks manufactured at Cadbury’s Pune plant.In defense, Cadbury issued a statement that the infestation was not possible at the manufacturing stage and poor storage at the retailers was the most likely cause of the reported case of worms
2. Cadbury brand has been involved in allegations of employing child labour after an investigation obtained footage of children working with machetes on cocoa farms in its supply chain. Children as young as 10 have allegedly been found working in Ghana to harvest cocoa pods to supply Mondelez International, which owns Cadbury. Campaigners say the farmers are being paid less than 2 euros a day and can’t afford to hire adult workers.
3. The brand once was also accused of stealing south korean boy band BTS purple heart to fight against cyber bullying. 

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Conclusion

Despite the challenges and controversies, Cadbury continues to be a leader in the dessert market, more than a century after its inception. Its thoughtful revenue model, efficient marketing, and successful market expansion strategies have placed it on a pedestal that many aspire to reach but few actually do.

With evolving consumer tastes and increased competition, Cadbury faces a demanding future. However, its historical knack for adaptation and innovation suggests that this is a brand with the resilience and resourcefulness to continue satisfying the world’s sweet tooth for generations to come.

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