A SWOT assessment of Cadbury’s Oreo analyzes the brand’s strengths, weaknesses, opportunities, and threats based on its strengths weak points, weaknesses, opportunities, and threats.
According to Cadbury’s Oreo SWOT Analysis, the advantages and disadvantages are internal elements, while threats and opportunities are outside factors.
SWOT Analysis is a proven management tool that allows brand such as Cadbury’s Oreo to evaluate their performance and performance when compared with their competitors. Cadbury’s Oreo is among the most popular brand names within the food and drinks sector.
The table below outlines Cadbury’s Oreo SWOT (Strengths and weaknesses Opportunities and Threats) and the most prominent Cadbury’s Oreo competitors, and also the market it is targeting segmentation, positioning, and its Unique Selling Point.
|No. of Employees||90,000|
|Market Cap||$ 85.54 Billion (2021)|
|Annual Revenue||$ 3.1 Billion (2020)|
|Net Income/ Profit||$ 387 Million (2020)|
Oreo is an extremely well-known biscuit brand. They are owned by the National Biscuit Company (Nabisco).
In the past, the ‘oreo biscuit was changed to “oreo sandwich” and changed to “oreo cream sandwich’ and finally “oreo chocolate sandwich cookie”.
Oreo make its first steps into India 10 years ago. Over the years, the brand has grown in acceptance.
Oreo advertising is unique. Its tagline remains well-known and everyone can remember Oreo by its slogan.
The slogan is “Twist Karo, Lick Karo, Dunk Karo’. In the advert the cookie is dipped by mixing it with milk, making it appear like a healthy snack.
There are numerous retailers in India that sell this type of biscuit. It is the most popular biscuit in India with an estimated sales of 8.5 percent.
Strengths In The SWOT analysis Cadbury’s Oreo
Strengths are the things that each company excels at in all its operations that can help it gain an edge over its competition. These highlights Cadbury’s Oreo :
- Very high Equity in the brand: Like all other brands Cadbury’s Oreo also has a strong quality brand recall and equity. This leads to a large number of consumers preferring Oreo over other brands of cookies.
- A strong connection to chocolate Word Cadbury’s has an enduring association with chocolate, so anything that is associated with Cadbury’s is also associated with chocolate. This is the reason why Oreo is a well-known brand of chocolate biscuits.
- Broad Distribution: In most of the markets where Cadbury’s Oreo is sold in, the brand enjoys broad circulation channels and extends to remote areas and villages, making sure that the brand is able to reach a broad coverage.
- World market: Cadbury’s is sold in nearly every country in the world, and it makes use of the same network for selling confectionery across the world. The company has more than 2100 distributors as well as 4,50,000 retail stores within its network, allowing the brand to reach out to the globe. The company is active across more than 95 different countries around the globe.
- Strong communication: Cadbury’s Oreo has been trying to connect with an audience across the globe by using slices of life advertisements that showcase the flavor and emotional connection to the biscuit. The brand highlights family and friendships in its ads and doesn’t depend on endorsements.
Weaknesses In The SWOT Analysis Cadbury’s Oreo
The term “weakness” is utilized to indicate areas in which the company or brand requires improvement. The most significant flaws of Oreo cookies include:
- The high cost of raw materials One of the primary ingredients used in Oreo Cookies is cacao. Moreover, Cadbury’s products all use premium cocoa, which is expensive. The price of the raw material is rising however the company is not able to raise the cost of the product by a proportional amount.
- Critiques: Cadbury’s had to withdraw some of their products on the American market due to salmonella poisoning. Alongside that, there are also issues with the use of chemical ingredients inside the biscuit. This has adversely affected the overall shares of the market as well as sales of Oreo biscuits.
- External competition Cadbury also has products, such as Bournvita chocolates and biscuits that take up a significant portion of their market shares Oreo biscuits. These products have low volume and low margins that affect the profit.
- A lot of emphasis on chocolates: Cadburys was always associated with chocolate and their biggest sales are from chocolates. This means they are unable to not pay attention to other confectionery items Oreo cookies are just one of them.
- Problems with differentiation: There are a lot of biscuit brands on the market, and a lot don’t have distinct differentiation. This can confuse the consumer and has negatively affected overall sales for all brands.
- The cost of advertising: The cost of advertising for Cadburys is very high, and is not reflected in the price of goods. But, as the business is dependent on impulse purchases, it is not able to reduce the cost of advertising.
Opportunities In The SWOT Analysis Of Cadbury’s Oreo
Opportunities refer to the opportunities within the surrounding environment which surrounds the company on which it could profit to boost its profits. Opportunities include:
- The growing demands of biscuits In the confectionery industry, the most growth rate is expected for biscuits. Chocolates are in high demand and the market is rising and it is expected to impact sales of companies positively.
- Potential for rapid growth within emerging countries: The countries like China and India are witnessing a revival of the trends that were once common across the West. Emerging economies are using biscuits as part of their snack routines and this could lead to an increase in the need for Oreos.
Threats In The SWOT Analysis Cadbury’s Oreo
The threats are the elements in the world that could hinder the development of the company. A few of them are:
- Competition: The major competition for Oreo includes Good Day, Parle G, Dark Fantasy, and companies such as Mars, Hershey’s, ITC, Parle, Brittania, Nestle, and many more are all competitors of Cadbury’s.
Oreo is among the most profitable chocolate cookie manufacturers in India. Its products, services, and taste are providing satisfaction to consumers for a long time.
In analyzing the weaknesses of the business We can conclude that the companies should alter their product to be more diverse and introduce something brand new to their customers. This way, it will be able to cope with the market.
One thing to be aware of is that Oreo employs some of the most successful strategies of digital marketing to market its products.
Particularly, digital marketing is crucial in today’s fast-growing and expanding world to achieve better outcomes and remain at the top of the market.
If you don’t have a notion of what digital marketing is, or if you want to learn more about it and improve your skills, check out IIDE’s 3-month Advanced Online Digital Marketing Course to find out more.
We hope that this blog post regarding the SWOT study of Oreo has provided you with an insight into Oreo’s strengths as well as its weaknesses, opportunities, and threats.
It is also possible to read our analysis of the complete Marketing strategy and strategy employed by Oreo to learn more.
If you are interested in deep company analysis, similar to the SWOT analysis done by Oreo visit the knowledge portal at IIDE to find more interesting examples.
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