MG412 Principles of Marketing CW2 Brand Extension Report

This report for MG412 Principles of Marketing CW2 discusses Cadbury's brand extension strategy of mix fruit ice-cream. The report includes a description of the existing brand and brand value, target market, and competitor analysis. The report also covers a PESTLE analysis and Ansoff's Grid analysis of the new market. Primary and secondary research methods were used to collect relevant information about the company and the new brand extension idea. The report concludes that Cadbury has successfully introduced its new brand extension idea in the market and has gained competitive advantages by introducing an innovative and creative idea.

MG412 PRINCIPLES OF
MARKETING CW2 BRAND
EXTENTION REPORT

EXECUTIVE SUMMARY
The present report is based over the concept of marketing and branding. Brand extension is one
of the effective strategy that has been adopted by bigger organizations in order to promote their
brand in the national and international market. The present report has described about the
Cadbury brand which is British multinational confectionery organizations in the United
Kingdom. The brand extension idea of the Cadbury has been highlighted which is mix fruit ice-
cream. The primary and secondary research has been conducted and the analysation has been
performed. The targeted market, external environment and competitor analysis has been covered
in the report.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Methodology................................................................................................................................4
Primary research..........................................................................................................................4
Findings.......................................................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
Appendix........................................................................................................................................10
Questionnaire.............................................................................................................................10

INTRODUCTION
Marketing refers to strategic approach of ventures, either small or large, that help to
generate excellent brand awareness (Das and et.al., 2021). The current assignment will be based
on Cadbury, which falls under the category of leading British multinational confectionery
organizations in the United Kingdom. The study will explain new brand extension idea of chosen
firm and that is mix fruit ice-cream. It will define the method of carrying out research and
concept of a brand extension. Furthermore, the report will explain the description of target
market, analysis of new market including trends and explanation of new item, along with the
comparative analysis.
MAIN BODY
Methodology
There are different types of research approaches available in the world that a researcher
utilized to carry out their investigation appropriately, which is important for them to do that. In
the context of current study, primary and secondary research methods are used appropriately, for
purpose of carrying out the research and collecting relevant information about chosen company.
The similar approaches also used to collect and specific the data about new brand extension idea,
that Cadbury may take initiative to introduce in the market, for purpose of obtaining desire
outcomes. By following primary research method, 10 customers of Cadbury select as
respondents, who provide their reviews and thoughts about new brand extension concept, which
assure management whether their target market accept new concept or not.
Primary research.
Yes 8
No 1
Not sure 1
Interpretation- from above table, it has been determined that majority of respondents are
in favour of mix fruit ice-cream that produce by including all vegan ingredients. Out of 10, 9
respondents provide their views in term of preferring to eat vegan mix fruit ice-cream, while 1
respondent is against the statement, and 1 more is not assured about that.
Yes 7

No 2
Not sure 1
Interpretation- from above table it has been identified that majority of participants are in
favour of following veganism trend. Out of 10, 7 respondents said yes to follow the trend, while
2 are against of that. Only 1 participant is unsure about the same statement.
Findings
Existing brand and brand value
Cadbury has become a common household name globally as it is one of the leading
chocolate manufacturer with more than 10 percent of market share. The brand image of Cadbury
denotes family connections, celebrations and emotions. This brand is most famous for its milk
based chocolates that are favourites of children. The main reason for its emotional brand
personality is its marketing techniques. It focuses on family related shows for advertisements and
begin special ad campaigns during festivals that includes family relations and emotional bonds
(Pandey and et.al., 2021). This has created an emotional bond with the customers and a positive
attitude and feelings towards the brand. The existing brand image of Cadbury is quite positive
and full of trust from the customer’s perspective. It has been successful in creating customer
loyalty and faithful personality in the market.
Cadbury also involves itself in social campaigns and festive campaigns that improves its
trust value among the customers and improves value in the eyes of existing customers. It stands
strong in the competitive environment because of its strong brand personality and campaigns. It
targets all age group people and hence, it has a high recognition in the market. It supports value
driven campaigns along with quality that develops a sense of standard products in the minds of
customers.
Description of target market
In regards to the targeting marketing of Cadbury it can be said that it has captured the
market on the basis of demographic segmentation. Demographic segmentation refers to that
segmentation of marketing in which the customers have been targeted on the basis of their age,
gender and educational level. However, Cadbury has mainly focused the age attribute and the
children and youngsters have been mainly approached by the company. This is the primary target

market of Cadbury whereas, in secondary targeted market the company has approached the all
segments and people from the all age group (Jinu, 2020). Thus, the company has made an
effective focus over their targeted customers and this is one of the major reason that why the firm
has effectively managed their brand value in the market. Furthermore, behaviour segmentation is
often approach by the company in which those customers who have the habit of eating
chocolates have been approached.
Analysis of new market, including trend-
PESTLE analysis-
Political factor-
The current category of factor may put positive impact on Cadbury new brand extension
tactic (Casañ, Alier and Llorens, 2021). As the political stability in the UK may drive the
attention of firm toward introducing new concept or idea and conducting practice to do so in
term of global expansion, if it requires.
Economic factor-
Economic growth, disposable income and other economic factors may put similar impact
on company as above. It may enable firm to introduce new vegan mix fruit ice-cream as brand
extension.
Social factor-
Customers trends, buying behaviour and other forces may also impact Cadbury new
brand extension positively as firm already consider the trend such as veganism that allow
introducing new vegan mix fruit ice-cream.
Technology factor-
Technology advancement plays important for in success of new brand extension, by
Cadbury in term of driving marketer's attention toward using advanced technologies for purpose
of generate awareness about the current concept.
Legal factor-
Changes related to regulatory terms may put negative impact on Cadbury new plan in
term of increasing a lot of pressure upon management, to comply with new legislations and
change plan accordingly.
Environmental factor-

Governmental bodies and customers concern about environmental sustainability may put
positive impact on chosen company new brand extension, as firm may already follow CSR
concept and conduct practice accordingly.
Ansoff's Grid-
Market penetration-
By considering Ansoff's grid model, it can be analysed that Cadbury may adopt current
strategy in term of focusing on improving existing goods quality by adding more value in the
same.
Market development-
The current term may drive firm attention toward focusing on selling existing items into
new markets which is quite beneficial for its success and growth in the market.
Product development-
According to product development tactic, Cadbury may take initiative to introduce new
item or service, that help to gain the attention of new customers and retain existing buyers.
Diversification-
The current concept or strategy is quite challenging when organization adopt that because
of encompasses risk of failure and chance to success in the new market, where company may
introduce new idea as brand extension.
Explanation of new product
The company has launch new packaging of the existing products and along with this, mix
fruit ice-cream idea has been introduced by company in order to perform the brand extension.
The Cadbury is effectively using the Tauber’s brand extension version which states that, using of
the established brand version name in order to enter into the new category. The Cadbury has only
produced the chocolates and the chocolates flavoured ice-cream (McKersie, 2021). Whereas,
new product that is being introduced in order to perform brand extension is related to mix fruit
ice-cream which is completely new. However, the existing goodwill of company is assuring
effective contribution in promoting the new product of Cadbury. Thus, introducing new mix fruit
flavoured ice-cream is the ultimate step of the company in regards to performing the brand
extension which will be beneficial for company in terms of attracting large number of customers.
Competition

In context of introducing new product by Cadbury which is mix fruit ice-cream the major
competitor of the company is Nestle. Nestle is already one of the major competitor firm of
Cadbury. However, nestle have started selling the ice-cream range as well which is one of the
biggest threat for the Cadbury (NAGAR AND ET.AL., 2021). Therefore, Cadbury needs to
assure keen focus over the strategy of competitor firm and on the basis of that effective strategies
in context of brand extension should be taken so, the company can experience numerous
benefits. Thus, in this manner extent of competition can be manage by Cadbury.
CONCLUSION
On the basis of above discussion, it has been concluded that organization has successfully
introduced its new brand extension idea in the market by following the concept or theory of
Kapferer's brand identify prism. It has achieved set goals by using STP and other strategic
models, which has driven the attention of company toward taking right actions. Furthermore, by
summing up above analysis, it has been summarized that firm has gained competitive advantages
by introducing innovative and creative idea, in the market that helped to gain the attention of
potential customers, which is quite essential for company to do that.

REFERENCES
Books and Journals
Casañ, M. J., Alier, M. and Llorens, A., 2021. A collaborative learning activity to analyze the
sustainability of an innovation using PESTLE. Sustainability. 13(16). p.8756.
Das, G and et.al., 2021. Pandemics and marketing: insights, impacts, and research opportunities.
Journal of the Academy of Marketing Science. 49(5). pp.835-854.
Jinu, M., 2020. Cadbury dairy milk silk–a full fledged promotional aid.
McKersie, R.,2021. Brand Analysis: Cadbury.
NAGAR AND ET.AL., 2021. RESEARCH PROJECT ON “CONSUMER PREFERENCE
TOWARDS CADBURY CHOCOLATES”.
Pandey, R. and et.al., 2021. A comparative study of consumer perception on the usage of Cadbury
products in Malaysia and India. Journal of the Community Development in Asia
(JCDA). 4(1). pp.106-115.

Appendix
Questionnaire
 Do you prefer to eat vegan mix fruit ice-cream?
◦ Yes
◦ No
◦ Not sure
 According to you, veganism trend is useful and beneficial for health?
◦ Yes
◦ No
◦ Not sure

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