Cadbury Brand Extension Strategy: MG412 Principles of Marketing Report

This report provides an analysis of Cadbury's brand extension strategy, focusing on a new watermelon and milk chocolate bar. It examines the company's background, market share, sales trends, and brand values. The report identifies the target market for the new product, analyzes key trends and PESTEL factors influencing the brand extension, and offers a comparative analysis with existing products. The marketing strategy employed is market penetration, leveraging the existing market with product innovation. The report also includes survey data indicating consumer interest in the new product, and discusses packaging design, logo considerations, and brand equity derived from the parent brand. References to relevant academic sources are provided to support the analysis.

Principles of
marketing

Background on the chosen brand include useful data
such as market share, market size and
trends in sales.
 Cadbury is a British multinational candy firm that has
been owned entirely by Mondelez International
(formerly Kraft Foods) since 2010. After Mars, it is the
world's second largest candy brand. Cadbury is
headquartered in Uxbridge, west London, and
operates in over 50 countries around the world.
 Market share – Cadbury has major market share
among chocolate selling company.
 Market size - Cadbury shares 70% share in the global
market in context of chocolate selling companies.
 Sales – Cadbury company has earned increased
revenue of 7.9% in 2021.

Coverage of the existing brand values
 Cadbury has good brand value within
market. It has initiated a new brand strategy
that, for the first time in more than a
decade, does not focus on happy occasions.
The new positioning, which was unveiled
with the "Mum's Birthday" campaign,
focuses on "real gestures of love and
charity."

A brief explanation of the new product
 The new product “Cadbury watermelon and milk bar can have following
strategies for entering the new market –
 Market penetration: According to this type of market entry strategy, the
company has ability for entering existing market with innovation on the
present product or service
 Product development: In this strategy, a new product or service is
introduced into the same market, which can aid in attracting clients to the
company's new offerings
 For this new product, the strategy used for entering is Market penetration.

Clear identification of the proposed target
market for the new brand extension
Q1) Are you liking the new Cadbury watermelon and milk bar ? Frequency
a) Yes 30
b) No 10
 It is evaluated from the above interpretation, it is analyzed
that people are liking the new Cadbury chocolate
a) Yes b) No
0
5
10
15
20
25
30
30
10
Frequency
a) Yes b) No
0
5
10
15
20
25
30
30
10
Frequency

Any key trends and PESTEL issues that have
influenced your choice of brand extension idea.
 Taxation is a political factor that will influence how Cadbury conducts its
investment and dividend payments to shareholders. For contrast, in 2010, the
Value-added Tax climbed by 2.5 percent, raising chocolate prices and decreasing
sales.

A comparative analysis
 The new Cadbury mango and milk
chocolate is different from other
chocolates sold in market. This has new
flavor and especially this is made for
children. That is why fruit flavor is added in
this chocolate.

Packaging design and logo.

Brand extension
 Cadbury new bar chocolate is positioned
under the notion "Cadbury (chocolate)
within," with equity derived from the
parent brand Cadbury. It makes perfect
sense given Cadbury's tremendous brand
identity and link to chocolate.

References
 Wordsworth, D., 2018. A History of Cadbury. Pen and Sword.
 Aneani, F., Adu-Acheampong, R. and Sakyi-Dawson, O., 2018.
Exploring opportunities for enhancing innovation in agriculture: The
case of cocoa (Theobroma cacao L.) production in Ghana. Sustainable
Agriculture Research, 7(526-2020-418), pp.33-53.
 Upadhyaya, A., Uprety, M. and Shukla, R.K., 2018. ADVERTISING
EFFECTIVENESS OF BOURNVITA’AD PHILOSOPHY AMONGST BUSINESS
MANAGEMENT STUDENTS. Prestige International Journal of
Management and Research, p.50.
 Butt, M.M., Khong, K.W. and Alam, M., 2020. Managing corporate
brand behavioural integrity: a case of alleged violation of Halal
certification. Journal of Islamic Marketing.