CADBURY: A STICKY SITUATION
Keywords:
marketing, cost cuttingAbstract
Kraft Inc. had recently purchased Cadbury, one of the UK most iconic brands. One of Cadbury’s most beloved products was the Egg Crème. Sold only at Easter, the eggs had been a British tradition for decades and was considered by many English consumers an important part of the Easter celebration. Due to pressures to sustain profit margins, Kraft was proposing to change the chocolate formula used in the eggs to a less expensive powered chocolate rather than the traditional Dairy Milk formula. Customer reaction to the proposal was swift and negative. Executives at Kraft need to consider the effect of changing to the less expensive chocolate on Cadbury’s profits and brand equity versus profit margin erosion.
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