PESTLE Analysis of Cadbury. Cadbury is a British confectionary manufacturing multinational company. John Cadbury established the confectionary manufacturing company in 1824. The headquarter of Cadbury is in Uxbridge, London, UK.
Some of the main products and services are as follows;
- Curly Wurly
- Chocolate Button
- Milk Tray
- Marvelous Creation
- Silk Oreo
- Crème Eggs
- Dairy Milk
The parent company of Cadbury is Mondelez International since 2010. The confectionary’s company annual revenue was 30.459 billion dollars by the end of 2022; out of which the brand’s net income was 3.137 billion dollars. Roundabout’s 80,000 employees are managing its worldwide operations.
Some of the top competitors of Cadbury are as follows;
- Kraft Foods
Today, we’ll discuss the pestle analysis of Cadbury. It would focus on external factors like political, economical, social, technological, legal, and environmental factors. Here’s the pestle analysis of Cadbury as follows;
Political Factors Impacting Cadbury
Some of the key political factors in the pestle analysis of Cadbury are as follows;
Cadbury is a multinational confectionary brand operating its business in various countries across the world. Approximately 75% of the company’s revenue comes from outside of Britain and America. Trade and tariff policies of different countries impact the growth and operations of the company.
Ever since the Brexit (Britain out of the European Union) deal, other Europeans can’t enter and work in the UK’s market. According to an estimate, approximately 3000 employees are working in the Cadbury factories within the UK. Restrictions on foreign workers and cheap labor have badly the operations of the company in the UK.
Taxation policies of different countries would impact the business and profitability of the company. For instance, the 25% increment in the value-added tax on the sale of chocolate confectionary items significantly dropped the sale of the company.
After the increment in taxes, Cadbury decided to move its operations and outsource most of the industrial from the Indian manufacturers in order to deal with the high cost and expenses issues. It allowed the company to create job opportunities in developing countries like India, and the company would manage the high-cost issue.
Economical Factors Affecting Cadbury
Some of the main economical factors in the pestle analysis of Cadbury are as follows;
International political issues, wars, the oil crisis, and other conflicts have pushed the global economy into recession. Resultantly, the purchasing power of people has dropped significantly to a great extent. When people have got limited income, they won’t spend it on luxury items.
According to an estimate, the annual revenue of Cadbury has increased by 7.4%, but the net income of the company has declined by 29.55% in 2022. The sale of Cadbury’s confectionary items has increased, but it hasn’t contributed to the growth and profitability of the company.
Social Factors Impacting Cadbury
Some of the key social factors in the pestle analysis of Cadbury are as follows;
Compared to alcoholic drinks; the consumer market has accepted the sale of confectionary items like chocolate candies, liquid chocolate, cocoa, coffee, and tea. The high social acceptance level of chocolate candies has allowed the Cadbury brand to penetrate different countries across the world.
Halal or Not?
Many Muslim consumer markets are highly cautious about the Halal food and Halal ingredients used in the product. In order to successfully conduct its operations in Muslim countries, the brand should make sure that it is following cultural and religious norms.
Many research studies have shown that high-sugar products and confectionary items are the main cause of obesity and cholesterol issues. Obesity among young children is a serious issue in the Western world. They have become highly cautious about obesity and health issues, and that’s why the company should keep in mind the health concerns issues of the customers.
Technological Factors Affecting Cadbury
Some of the main technological factors in the pestle analysis of Cadbury are as follows;
Cadbury invested a significant amount of capital and resources in research and development. R&D has improved the production processes and tech capabilities of the companies. So that the company could lower production, set low retail prices, and increase its sales and profitability.
Social Media Channels
Cadbury employs various social media platforms like Facebook, Instagram, and Twitter to connect with its customers and introduce its latest products and offers. It helps the confectionary brand to spread brand awareness and develop a strong relationship with the target customers.
Legal Factors Impacting Cadbury
Some of the main legal factors in the pestle analysis of Cadbury are as follows;
Intellectual Copy Right Issues
Producing chocolate candy is not rocket science and any smart cook produces the same type of taste. That’s why counterfeiting is a common type of issue among confectionary product-producing brands; different countries have different IPR laws and regulations. The company should be aware of those laws and regulations before expanding its operations in a market.
In order to deal with obesity and other health concerns, the UK government has imposed a tax on sugar-containing products or sweet products. Cadbury’s portfolio consists of many sweet products, and it is not good news for the company’s revenue and profitability.
Environmental Factors Affecting Cadbury
Some of the key environmental factors in the pestle analysis of Cadbury are as follows;
Low Carbon Emission
Cadbury strongly believes in the sustainability of the environment and industrial processes. In order to comply with the regulations of the UN, the confectionary brand has taken powerful steps to reduce its carbon footprint and carbon emission rate.
Cocoa Life Program
In order to help and empower farmers in various developing countries, the company has launched the Cocoa Life Program. It is to encourage them to engage in environmentally friendly farming practices like reducing the usage of pesticides by 20%.
Conclusion: Cadbury PESTLE Analysis
After an in-depth study of pestle analysis of Cadbury; we have realized that Cadbury is the world’s leading confectionary brand. If you are learning about the external environment impacting the brand, then you should keep in mind the abovementioned factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.