Cadbury Brand Extension Strategy: An Analysis of Marketing Principles

This report provides an analysis of Cadbury's brand extension strategy, focusing on the proposed launch of a chips range. It begins with a background of Cadbury, its brand values, and promotional activities, followed by an explanation of the new product line and its target market, primarily children and youth with a focus on low to middle-income individuals. The report identifies key trends and PESTEL (Political, Economic, Social, Technological, Environmental, and Legal) issues influencing the brand extension idea, such as the consumer preference for quality over price and the importance of attractive packaging and promotional activities. A comparative analysis is conducted against a major competitor, Walker's chips, highlighting the need for an effective strategy to gain market share. The report concludes with a list of references used in the analysis. This student-contributed assignment is available on Desklib, where students can find a wide range of solved assignments and past papers.

Principles of Marketing

Table of content
 Background of Cadbury
 Cadbury brand values and promotional activities
 Explanation of the new product
 Identification of the proposed target market
 Key trends and PESTEL issues that have influenced the brand extension idea
 Comparative analysis of your suggested brand extension
 References

Background of Cadbury
 Cadbury is the most renowned brand in the
confectionery industry. It was founded by the John
Cadbury in 1824. according to the Alex turner,
2018.
 The market share of cadbury is around $ 6.8 billion
(Cadbury eats up market share,2018). According
to the forza industries, 2017.
 The respective company is one of the largest
chocolate selling brand in the UK market. Cadbury
dairy milk is the most selling chocolate in the
company portfolio with around £483.1m of annual
sales (UK's 5 best selling Choclate bars, 2017).

Cadbury brand values and promotional
activities Cadbury is known for its marketing campaigns and
advertisement strategies. The mentioned brand
launched several creative work in order to attract the
audience towards their products.
 Through their ads they also delivers the social
message that succours the respective brand in order
to from good image According to the Campaign,
2022.
 “Cadbury dairy milk bus” campaigns that showed the
act of kindness. Another campaigns that launched by
the company on order to supports the high streets
chocolate shops in Lock-down which is cadbury “for
the love of chocolate”.

Explanation of the new product
 Cadbury is planning to launch their range of chips in the market. As the managers of given firm
planning to provide the number of chips flavours such as tangy tomato, cream and onion as well as
baked chips in the market.
 Market penetration- this process includes the increases in the sales of existing product in the
existing market.
 Product development- In product development segment the manager of Cadbury creates the new
product in the existing market in order enhance their operational activities.
 Market development- in market development mangers of firm develop admirable strategy in
order to enter in the new market with their existing product portfolio.
 Diversification- This strategy majorly perform by the companies in order to enters in the marker
with new products.

Identification of the proposed target market
Target Market
 Cadbury is targeting the children's and
youth for their wide range of chips.
They focusing on the low and middle
income individuals through which they
can acquire the vast number of
customers towards their operations.
 The manager of given firm plans to set
the justified prices on their product
range in order to get the competitive
advantage in the market.

Key trends and PESTEL issues that have
influenced the brand extension idea
Some of the key trends that have the influence on the brand extension idea of company.
 Quality over price- consumers nowadays people of UK prefers the quality over price in
purchasing the products. Therefore the range of products that mentioned company planning in
launching have the higher possibility of success in targeting market.
 Attractive packaging and promotional activities- Customers generally purchases the products
that have the attracting packaging and ads. Hence, the mentioned company can attracts the
customers through appealing advertisement strategy. Through the attractive product packaging
with labelled information of ingredients can succours in higher sales.

Comparative analysis of your suggested
brand extension
 As according to the report the mentioned
company is planning to launch variety of
potato chips in the UK market. One of the
biggest competitor that company can face in
brand extension is Walker chips. Walker is
one of the biggest chips manufacturer in the
UK.
 The discussed competitor offers variety of
flavours to its customer. Hence, the
mentioned company need to focus on the
effective strategy in order to manipulate their
market.

References
 Hazell, 2018. Principals' Use of Marketing Plans to Inform Their Means of Communication with
External Stakeholders. Sage Graduate School.
 Hunt, 2020. Indigenous theory development in marketing: the foundational premises
approach. AMS Review, 10(1), pp.8-17.
 Rice, and et. al., 2020. Comparative analysis of the toxicological databases for 6: 2 fluorotelomer
alcohol (6: 2 FTOH) and perfluorohexanoic acid (PFHxA). Food and Chemical Toxicology, 138,
p.111210.
 Harini, and Dhewanto, 2021. Brand mapping strategy for increasing brand awareness of
Mentailovers. In Synergizing Management, Technology and Innovation in Generating Sustainable
and Competitive Business Growth (pp. 202-207). Routledge.
 Goulding, and Abley, 2018. Relationship management in banking: principles and practice. Kogan
Page Publishers.

Thank-You