Brand Extension by Cadbury in Potato Chips Segment
Verified
Added on 2023/01/11
|8
|1693
|24
AI Summary
This report discusses about brand extension by Cadbury in Potato chips segment. Secondary research is used in majority of the project and it shows that company should enter in this segment by selling healthy snack.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Principal of marketing (Brand extension)
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Executive summary This report discusses about brand extension by Cadbury in Potato chips segment. Secondary research is used in majority of the project and it shows that company should enter in this segment by selling healthy snack. Company will use their brand name and product will be named Cadbury Chips.
Introduction With changing global business environment, organisations now understand that they must concentrate on growth as it is only option for survival. Brand extension is considered as old but effective strategy for growing business. This report is based on Cadbury, Britain based MNC, who is operating in confectionery industry. Project will discuss about brand extension by company where they will launch Bake Potato chips in multiple flavours. This will allow them to grab significant market share in US$ 30 Billion (approx.) global potato chipsindustry(PotatoChipsMarket:GlobalIndustryTrends,Share,Size,Growth, Opportunity and Forecast 2020-2025, 2020). Methodology Secondary sources will be prime source of information along with analysis of competitors and observing market. Enough data can be found to prove that Cadbury can enter in potato chips segment by launching baked potato chips. Findings Brand value and current branding Brand is a logo or mark which separates an organisation’s products or services from others. Companies concentrate on brand extension because it is a basic strategy to earn more profits. Cadbury is known for selling chocolates; this brand has global recognition and entering in new segment will help enterprise in enhancing their revenue. Below isKapferer’s Brand Identity Prism to understand Cadbury and its Brand value: Physique– It refers to look of brand; it is basically referring to physical features that create brand’s image in mind of customers (Galli, Boger and Taylor, 2019). Cadbury use navy blue colour for packaging and their product’s design differs according to the offerings. Personality– It is related to the way organisations communicate with existing and potential customers. It includes tone of communicating which basically delivers brand’s message. Cadbury project themselves as a seller of joy. They understand that targeting children is difficult as they are, anyway, going to buy chocolate so now they are representing their products a replacement for dessert.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Culture– Every organisation has a culture which is consist of principles and values. Cadbury wants to create trends; they promote same thing in their working culture by making a balance between innovation and recent trends. Self-image– It refers to the image that customers want to create about themselves. If an organisation can find idea identity that is present in mind of buyers, then company can modify their message accordingly. Cadbury attach the message of “joy” with their products like dairy milk as it will be used by customers for making other people happy and indirectly it will create customer’s image of someone who spread joy. Reflection– It may look similar to self-image, but it isn’t. Here, company create image of their customers and deliver message accordingly. Cadbury depict that children and people in varying relationships are company’s main customer base. Relationship– This element is related to the relationship that organisation wants to create with its customers. Way of connecting with buyers, attitude of brand and other aspects are focused under “relationship”. Cadbury has millions of customers from different age group, they always concentrate on creating sweet relationship with purchasers through designing or packaging of products. Description of target market Cadbury is entering in new segment where they will sell baked potato chips which are not unhealthy (Suyanto, 2019). Below is STP analysis of Cadbury potato chips: Segment–Potato Chips is already established industry it is expected to grow at the rate of around 4% yearly. This industry has billions of customers across the globe and Cadbury will use their brand visibility along with companies supply chain network for getting attention. Target– Children and millennials will be main target of potato chips. Positioning– Cadbury will promote baked potato chips as a product which does not do any harm to customers. If will not have any unhealthy ingredient and quality of chips will be better than average. Analysis of market PESTLE analysis
Political –Beside some regular trade wars between USA and China, there are not any issues relating to global political instability. It is a positive factor for worldwide launch of potato chips. Economical –Demand in developing economies like India is continuously enhancing due to improved purchasing power. Developed markets are also going to buy newly launched product as there is no sign in reduced consumption of baked chips in these economies. Social –The trend of eating heathy but tasty food is growing and it will sustain for longer period (Perera, 2017). Potato chips are not healthy, but the product offered by Cadbury will be baked and it will be made by using organic ingredients. These factors will work in favour of company. Technology– Latest technology will be used for production and marketing of Potato chips. It will assist organisation in capturing more market share in less time period. Legal– Cadbury will follow are the food safety related regulations. It will save company from various legal troubles; and will make a positive impact on enterprise’s image in long run. Environmental– Instead of plastic, eco-friendly material will be used for packaging as it will not do any harm to the environment. Ansoff matrix Market penetration–Selling existing product is a market where company already has presence is known as market penetration. Market development –It refers to selling existing product in a newly identified market in order to increase company’s footprint. Product development –When a new product is sold in an existing market then it is considered as product development. Cadbury is using this strategy by selling baked potato chips in those countries where they are already operational. Diversification –It is known as most risky strategy; new product is sold in a market where company does not have any experience of running business. Explanation of new product
Tauber’s Brand Extension Options has brand extension as one of the options where company sell more products by using same brand name. Cadbury will do same in order to encash their brand value. The product will be called “Cadbury chips” and positioned as healthy snacks for everyone. Competition BasisLay’sCadbury chips ProductChipsmadebyunhealthy ingredients. Organic ingredients will be used in production of chips. PriceCompetitive pricingPenetration pricing PositioningTasty and Favourite snackHealthy and tasty PromotionMostlyTelevision advertisement. Creative. T.Vandsocialmedia promotion. Creative. Conclusion At the end, it can be concluded that brand extension will be successful because of strong supply chain network and goodwill of Cadbury. Most of factors are in favour of company; right execution of strategy can assure success to the organisation.
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
References Books and Journals Galli, F., Boger, C.A. and Taylor, D.C., (2019). Rethinking Luxury for Segmentation and BrandStrategy:TheSemioticSquareandIdentityPrismModelforFine Wines.Beverages.5(1). p.26. Parker, J.R and et al., (2018). Building a multi-category brand: when should distant brand extensionsbeintroduced?.JournaloftheAcademyofMarketingScience.46(2). pp.300-316. Perera, R., (2017).The PESTLE analysis. Nerdynaut. Suyanto,AMA,(2019).AnalysisofSegmentation,Targeting,andPositioning(stp) Transmart.eProceedings of Management.6(2). Almestahiri, R. D. and et.al, 2017. The use of the major components of social marketing: a systematic review of tobacco cessation programs.Social Marketing Quarterly.23(3). pp.232-248. Eneizan, B., 2016. Effects of green marketing strategy on the financial and non-financial performanceoffirms:Aconceptualpaper.ArabianJournalofBusinessand Management Review. Fornell, C., Morgeson III, F. V. and Hult, G. T. M., 2016. Stock returns on customer satisfaction do beat the market: gauging the effect of a marketing intangible.Journal of Marketing.80(5). pp.92-107. Kumar, A., Dhamija, S. and Dhamija, A., 2016. Political marketing: The horizon of present era politics.SCMS Journal of Indian Management.13(4). pp.116-125. Chylinski, M. and et.al, 2020. Augmented reality marketing: A technology-enabled approach to situated customer experience.Australasian Marketing Journal (AMJ).28(4). pp.374- 384. Xiao, M., Wang, R. and Chan-Olmsted, S., 2018. Factors affecting YouTube influencer marketingcredibility:aheuristic-systematicmodel.Journalofmediabusiness studies.15(3). pp.188-213. Online PotatoChipsMarket:GlobalIndustryTrends,Share,Size,Growth,Opportunityand Forecast2020-2025.2020.[Online].Availablethrough< https://www.imarcgroup.com/potato-chips-manufacturing-plant>.