Assignment from World Economic and Strategic Thinkers
Task : Pick up a well-established multinational company and write an analysis on some company internal aspects that makes them the successful companies they are now
Love, Cadbury
What name pops up in people’s mind when they heard the word ‘confectioneries’? Few don’t come up with Cadbury. It is that famous. First set in motion almost two hundred years ago, it has now grown into a linkage of factories as well as partnerships, spread worldwide and still expanding with new innovations.
So what kind of history does Cadbury have, as they manage to be one of the best in confectionary brand? What kind of advertising technique they implemented, so that their name is well remembered, even becoming the most associated one ever? What kind of vision as well as value they hold? This essay will provide you with an in-depth analysis on those three components.
The beginning of the number one confectionary company was a simple grocer shop in the Bull Street, a part of Birmingham, UK, and the goods include cocoa and drinking chocolate. The business grew, and John Cadbury, the pioneer behind it, moved into manufacturing more of cocoa product. After he fell into illness, his sons (Richard and George) took away the business and bought a revolutionary cocoa press from Dutch manufacturer, Van Houten[1]. Thus they began the production in a green area they bought, and named ‘Bournville’. Factory in a garden.
They launched their first milk chocolate on 1905. On with a new product, Milk Tray, which is a box of chocolate for daily eating. Then the company merged with J.S. Fry & Sons Limited[2] in order for both companies to compete against Rowntree[3]. And they expanded their business overseas, opening factory first in Hobart, Tasmania, followed by New Zealand afterwards. The Second World War started, and Cadbury products were spread to many countries along with military troops, though the making of chocolate and cocoa went under government control.
But then the war ended and they began moving into TV advertisement. Cadbury merged with Schweppes[4] in order to give better value to the customer, boost its foods arm and gain the resources to enter international markets. On 2003 Cadbury becomes the world’s No 1 confectionery company after buying up various chewing gum brands, such as Trident and Stride. But on 2008 Cadbury and Schweppes demerged, splitting its confectionery and drinks business.
Cadbury has a unique advertising technique. Instead of entirely focusing on the product, they go trough various indirect association, touching costumer from the other way around, exceeds any other usual advertising technique. They adapt with the environment and culture of their destination area, to have an easily accepted marketing, suitable for specific conditions. Add creativity to boot. Take a look at India with its Cadbury mobile campaign:
The interactive campaign for “Pappu Pass Ho Gaya” which means “Pappu[5] has passed in his exams” bagged a Bronze Lion at the prestigious Cannes Advertising Festival 2006 for ‘Best use of internet and new media’. The idea involved a tie-up with Reliance India Mobile service.
It allowed students to check their exam results using this mobile service. If the student passed, he got a short message congratulating him saying “Pappu pass ho gaya” along with the exam result and hence encouraged him to celebrate the moment with a Cadbury Dairy Milk.[6]
These are the TV ad example, their newest, infamous Gorilla and Eyebrow commercials. While Gorilla features a gorilla playing drums to the beat of ‘In The Air Tonight’, Eyebrow features two kids having their eyebrows danced to the tune “Don’t Stop The Rock” by the group Freestyle, shot from many camera angles. Both messaged Cadbury’s strap-line : “A glass and half full of joy” despite the lack of vivid association between both ads’ theme and chocolate. However those ads was seen by millions and millions trough video streaming online, and the sale of Cadbury’s Dairy Milk indeed increased.
Those were only a few of Cadbury’s marketing strategy. And below follows the marketing code of Cadbury:
We are proud of our brands. They provide fun and enjoyment as treats or refreshment, and are valued for their functional balanced diet and lifestyle. We provide choice by offering variety and through innovation. We encourage responsible consumption, as this is central to consumers continuing to enjoy our brands.[7] benefits. They can be enjoyed as part of a
Cadbury has an infamous vision, using simple language and little words. Creating brands people love. The are always a company people engage with, and they engages with people, open with their business, proved by the huge streaming of internet information about their company from their history until their yearly review. Free to be explored by their costumers. They also hold a strong value in achieving their goal to be the biggest confectionary company in the world. These are the systematical rundown of their value.
We are passionate about winning. We compete in a tough but fair way. We are ambitious, hardworking and make the most of our abilities. We are prepared to take risks and act with speed.
Quality. We put quality and safety at the heart of all of our activities – our products, our people, our partnerships and our performance.
Respect. We genuinely care for our business and our colleagues. We listen, understand and respond. We are open, friendly and welcoming. We embrace new ideas and diverse customs and cultures.
Integrity. We always strive to do the right thing. Honesty, openness and being straightforward characterize the way we do business. We have clear principles and do what we say we will do.
Responsibility. We take accountability for our social, economic and environmental impact. In this way we aim to make our business, our partners and our communities better for the future. Our Business Principles are our code of conduct and also take account of global and local cultural and legal standards. They confirm our commitment to the highest standards of ethics and business conduct.[8]
Cadbury has gone trough years and years holding such value as well as implementing their way of advertising. Success doesn’t come in a night. Being a number one confectionery company in the world doesn’t come in a night. But being loved by its costumer is their main road to achieve their organizational goal. It would be nice if companies around the world took an example from Cadbury’s managerial conduct. Viewing costumer not as some random faceless person to squeeze revenue from, but individuals to work with, adding fun to the process.
[1] C.J. Van Houten invented cocoa manufacturing machine and then established his own cocoa brand, Van Houten at 1828. (http://www.vanhoutendrinks.com/en/8)
[2] J. S. Fry & Sons, Ltd. was a British chocolate company owned by Joseph Storrs Fry and his family. This business moved through several names and hands before ending up as J. S. Fry & Sons. By 1919 the company merged with Cadbury’s chocolate and the joint company named British Cocoa and Chocolate Company. After 1981 the name Fry’s was no longer in use, but the factory is still a major producer of Cadbury’s products. (http://en.wikipedia.org/wiki/J._S._Fry_&_Sons)
[3] Rowntree’s was a confectionery business based in York, England. It is now a historic brand currently owned by Nestlé that is used to market a range of fruit gums and pastilles formerly owned by that business. (http://en.wikipedia.org/wiki/Rowntree%27s)
[4] Schweppes is a beverage brand that is sold around the world. It includes a variety of carbonated water and ginger ales. Begun when Johann Jacob Schweppe (1740-1821) founded the Schweppes Company in Geneva in 1783 (http://en.wikipedia.org/wiki/Schweppes)
[5] Pappu is a common nickname used for children in India
[6] http://gawdlevelmarketing.blogspot.com/2007/10/cadbury-dairy-milk-intiates-fantastic.html
[7] http://www.cadbury.com/ourresponsibilities/consumer/ourmarketingcode/Pages/ourmarketingcode.aspx
[8] www.cadbury.com