Cadbury’s selling price to wholesalers is $2.50. Its profit margin increased to 21.08 percent in Q1 2023 from -4.48 percent in Q1 2016. The margins and profitability of Cadbury may fluctuate due to the varying price of raw ingredients like cocoa, milk, and sugar.
Market Presence and Popularity
Cadbury is most popular in India, United Arab Emirates, and South Africa. The best-selling Cadbury product is Dairy Milk, with 23.9 million consumers in Great Britain in 2020. The most luxurious offering is the $1,600 Wispa Gold Bar, made with premium cocoa and edible gold.
Marketing Strategies
Tips for Candy Businesses
Cadbury recommends 6 marketing tips for candy businesses:
- Give potential customers a taste
- Find people who like food
- Note that food fans enjoy new flavors
Pricing and Distribution Strategies
Different pricing strategies are employed, such as:
- Price skimming for some products
- Economical pricing for Dairy Milk to attract different market segments
Cadbury’s goal is to launch and promote new brands globally and to export more products.
The distribution strategy follows a 3-tier system: C&F, wholesaler, retailer, to customer. Cadbury’s main competitors are Mars and Nestle, with its unique selling point being the classic chocolate taste.
Additionally, the coffee industry, where farmers are at the bottom of the supply chain, is highly competitive with prices increasing along the marketing chain. Cadbury’s long-term strategy is to focus on global brand promotion.
Profit and Profitability
Cadbury Nigeria’s gross profit soared by 98 percent to N6.4 billion in Q1 2023 from N3.23 bn in Q1 2022. The gross margin saw an increase to 40 percent in Q1 2023 from 27.2 percent in Q1 2022, showcasing the brand’s resilience.
In financial circles, Marion Mulcahy of Numis Securities expressed satisfaction with Cadbury’s performance. However, she cautioned that Cadbury shares might be subject to profit-taking after a 20 percent rise in that year’s value. She also noted that the shares were trading at a high multiple compared to the sector average.
Cadbury remains one of the most iconic chocolate brands worldwide, having a rich history of over 200 years. The company must navigate the complexities of market dynamics and ingredient costs to maintain its position in the global market.