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In-depth SWOT Analysis of Dairy Milk – No. 1 Chocolate Brand In India

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In our former blog, we had discussed the most popular chocolate bar from the United Kingdom, Kitkat. In this blog, we will delve into the SWOT Analysis of Dairy Milk.

It is the No.1 chocolate brand in India and one of the leading confectionery brands in the world by revenue. Cadbury Dairy Milk is also the most popular chocolate bar worldwide by the search volume.

It is one of the most creative brands in marketing its product. It has used eye-catching advertisements on some of the most attractive platforms which are social media. They have targeted their audience excellently through digital marketing. So if you are interested in learning the latest skills in digital marketing – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.

Thus this makes us engrossed in learning how Dairy Milk is able to gain such a large presence in the market, here we have done an out-and-out study on the SWOT Analysis of Dairy Milk. But before we look into its SWOT analysis let us first know about Dairy Milk as a company, its products, competitors, financials, and more.

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About Dairy Milk

Dairy Milk's New Bournville factory in Britain - SWOT analysis of Dairy Milk - IIDE

Cadbury Dairy Milk is the gold standard for quality chocolate in India, and it is adored by people of all ages. It was first introduced in the United Kingdom in 1905 and currently includes a variety of products. Since 2010, Cadbury has been owned by Mondelez International. It is headquartered in Uxbridge, London, England.

In a challenge given to George Cadbury Jr where he had to make a milk chocolate bar in which more milk had to be there than any other chocolate bar in the market and he was successful in creating such a chocolate band and this is how Cadbury Dairy Milk was born.

Mondelez India has made its mark in the Indian chocolate segment as the market leader with a 65% market share, out of which 40% was dominated by Cadbury Dairy Milk alone.

Dairy Milk has a loyal consumer base that is attracted to its demographic-specific advertising with an emotional appeal that captures Indian traditions and festivals. Its trademark emotional advertising has a much greater impact on customers, as they are said to rely heavily on emotions rather than information while making brand decisions.

Quick Stats About Dairy Milk

Founder George Cadbury Jr.
Year Founded 1905
Origin Uxbridge, London, England
No. of Employees 45,000
Company Type Private
Market Cap $74.50 Billion (2020)
Annual Revenue $175 Million (2020)
Net Profit $33 Million (2020)

 

Products of Dairy Milk

Cadbury Dairy Milk is one of the largest confectionery brands in the world and to keep its customers satisfied it provides them with a large variety of products. Some of Dairy Milk’s products are as follows:

  • Chocolate Bars
  • Toffees and Candies
  • Premium Dark Chocolates
  • Speciality Chocolates

SWOT Analysis of Dairy Milk | IIDE

 

Close Competitors of Dairy Milk

Dairy Milk is one of the most famous brands in the world and it supplies its products all over the world. Thus this creates a large number of competitors for it. Some of Dairy Milk’s competitors are listed below:

  • Mars
  • Hershey’s
  • Nestle
  • Kraft Foods
  • Lindt
  • Ferrero

Now that we have an idea about the brand, let us go ahead with the step-wise SWOT Analysis of Dairy Milk.

 

SWOT Analysis of Dairy Milk

 

Infographics - SWOT Analysis of Dairy Milk | IIDE

SWOT analysis is the study of companies Internal factors – Strengths and weaknesses and external factors – Opportunities and Threats. A SWOT analysis is a powerful tool that has useful applications in almost every field of research.

Let’s start digging into its SWOT analysis by starting with the Strengths of Dairy Milk.

1. Strengths of Dairy Milk

Strengths are favorable variables that provide a firm with a competitive advantage over rival brands. Dairy Milk’s strengths are as follows:

  • Global name – Cadbury’s Dairy Milk is one of the most well-known brand names in the world. Because Cadbury and Dairy Milk have been around for 100 years, consumers have associated chocolate with Cadbury and Dairy Milk in particular.
  • Robust Distribution – Cadbury has properly understood the demands of diverse markets and, as a result, has set up large distribution, which has helped it achieve a significant competitive advantage in both urban and rural areas of various nations.
  • Financial Backing – Cadbury, as one of the world’s leading candy businesses, has a substantial presence in many nations. It has a strong network infrastructure all around the world and is financially stable.
  • High Brand Loyalty – Dairy Milk is a product of the confectionary business, which is based on impulsive purchases. Customers in this market are prone to switching brands at no cost, making it a challenge to sustain client loyalty. Dairy Milk, on the other hand, is able to sustain strong brand loyalty.
  • Strong Advertising – Dairy Milk has long positioned the brand as a family product that is especially significant to its target group of 10 to 25-year-olds. It has used strong social media marketing strategies to draw the customer towards it. It is the best skill to learn in this digital era where almost all companies need to manage their social accounts. If you wish to learn the latest skills in marketing, check out IIDE’s Social Media Marketing Course now.
  • Product Diversity – Dairy Milk is available in many different flavors like chocolate, fruit and nut, roast almond, crackle, oreo, red velvet, etc. Thus this draws a diverse group of customers and aids in revenue growth.

 

2. Weaknesses of Dairy Milk

Weaknesses are those aspects that limit the growth of a company and prevent it from meeting its goals. Dairy Milk has a few flaws that must be addressed.

  • Cocoa content is lower than competitors – The cocoa content in Cadbury Dairy Milk is approximately 2.58 percent (w/w), which indicates the degree of chocolate in the product. Other rivals, such as Amul and Schmitten, had cocoa content of over 3%. This can impact its flavor.
  • Cadbury contains high levels of sugar – According to food net India, Cadbury Dairy Milk has a very high sugar level; Cadbury Dairy Milk has more than 50% (w/w) sugar content. The current worldwide trend is toward healthier products, therefore this is a drawback.
  • Scandals and Controversies – Cadbury has been involved in a number of issues. Cadbury’s worm problem in India had a significant influence on its brand credibility, and Cadbury needed to put in a lot of marketing effort to overcome it. Such scandals have a negative impact on brand trust.
  • Single Website – Dairy Milk has only one site for all its international users. It needs to create specific sites to cater to different audiences in different countries. Engaging customers in tier own language is essential and a separate website is needed by every business in this growing digital era. If you wish to learn the latest skills in website building, check out IIDE’s WordPress Course now.

 

3. Opportunities for Dairy Milk

Opportunities are the potential skills and accessible resources that a company may use to expand its business. The following are some of the best prospects for Dairy Milk.

  • Brand engagement and advertising – Cadbury controls different confectionary marketplaces across the world. As an impulsive market, it is critical to keep clients engaged and to roll out intriguing advertisements.
  • Low sugar/ sugar-free variants – Cadbury Dairy Milk may develop products with low or no sugar content as health awareness grows throughout the world and customers shift toward sugar-free goods.
  • Healthy chocolates – In keeping with the trend of releasing new variants, a market for nutritional chocolate is growing, and Dairy Milk should release a variety with a high nutritional value.
  • Untapped rural markets – Chocolate is still not an in-demand product in the rural areas of India. With almost 2/3rd of the Indian population living in rural spaces, Cadbury could work on improving their distribution channels and thereby increase their market share.

 

4. Threats to Dairy Milk

Threats are external forces that may have an impact on the company. These concerns must be addressed as soon as possible to avoid serious harm to the organization. The following are the threats to Dairy Milk:

  1. Low Switching Cost – Due to the low switching cost, Dairy Milk’s marketing expenditures are greater because it comes within the impulse purchasing bracket.
  2. Rising health consciousness – As health awareness grows throughout the world, people are shifting away from high-fat goods toward healthier alternatives.
  3. Intense Competition – Dairy Milk competes with numerous brands throughout the world, including Nestle, Ferrero, Amul, Hershey’s, and Mars, among others. This type of competition decreases market share.

 

With this, we have completed the SWOT analysis of Dairy Milk. This helps the brand to know where it stands in the market and gives it an overview of its brand.

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Conclusion

After the study of the detailed SWOT Analysis of Dairy Milk, we know that it is one of the leading Chocolate companies in the world, it has positioned itself to be the best in the field. It has a well-established brand name and a robust distribution network. It can increase its business by bringing health-conscious products and catering to the untouched rural markets. Although it has a large presence in the market it still has some flaws.

It only has one website for all the countries over the world and due to the health consciousness among the people, it faces problems. These problems can be handled with proper study of digital marketing. It should invest more in its digital presence to get better results. If you are interested in learning and upskilling, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.

If you would like to read such detailed analyses of companies, find more such insightful case studies on our IIDE Knowledge portal.

Thank you for taking the time to read this, and do share your thoughts on this case study in the comments section below.

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]

Aditya Shastri

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