Cadbury's Brand Portfolio Strategy and Equity Management

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Brand management

TABLE OF CONTENTS
Introduction..................................................................................................................................................1
Task 1...........................................................................................................................................................2
Introduction..............................................................................................................................................2
Main body................................................................................................................................................2
Conclusion...............................................................................................................................................5
Task 2...........................................................................................................................................................6
1. Analyze the organization’s brand portfolio strategy...........................................................................6
2. Provide an illustration of the hierarchy management of brands within organization’s portfolio........7
3. Analyze strategies used for managing the equity of the brands within the organization’s portfolio. .7
Task 3...........................................................................................................................................................9
1. Strengths of the brand that can be leveraged.......................................................................................9
2. Weaknesses that may need attention providing some possible suggestions........................................9
3. Collaborative and partnership agreements.........................................................................................10
Task 4.........................................................................................................................................................11
Different types of techniques for measuring and managing brand value..............................................11
Conclusion.................................................................................................................................................13
References..................................................................................................................................................14

LIST OF FIGURES
Figure 1: Brand pyramid..............................................................................................................................3
Figure 2: House of brands of Cadbury........................................................................................................6

Introduction
Brand management is concerned as the actions that are based on promoting the brand into the concerned
market and applying strategies to create the mindset of brand in the market. Current report highlights
about effective management of brand and applying strategies to enhance the bran value. Report
considers that case study of Cadbury that is one of the British confectionery business providing different
food items. It is one of the leading organisations that have created mindset about products into different
sections of the society. Report assess about applying strategies to manage portfolio and brand equity of
Cadbury. In addition different techniques are also being discussed to manage and measure the concerned
brand value with other examples of organisations.
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Task 1
Introduction
In the present scenario of the study, the report will consider the scenario of Cadbury for assessing the
brand concept and management. Currently, every organization is responsible to manage the brand and
for this purpose they sometimes outsource this management function to other and in present case
‘Optimum Impression Ltd’ is hired for preparing the marketing brochure for enhancing the customer
numbers to the next level.
Main body
Brand and brand equity overview
Brand is the mechanism that shows the one liner’s, signage, taglines, slogans and other components to
develop the connections with the customers through their products. In branding, marketing activities are
conducted in order to have effective outcome that shows the customer demands and preferences for the
product (Batra et.al. 2012).
On the next side, brand equity is also the crucial element for management of brand as it will raise the
customer interest for the services. On this context, Cadbury has to improve their existing branding by
carrying out the marketing activities through bringing changes in present programs for determining the
components for getting branding equity (Brodie et.al. 2013).
Brand development using brand pyramid or brand development stages
The Cadbury product already includes the customer huge base for getting high satisfaction but to
maintain this, it is important to use the brand pyramid. Strengthening brand needs several stages
implementation (Hollebeek et.al. 2014). The team of marketing shall advertise to give the knowledge to
the customers in relation to the offering the Cadbury gives. It shall be understood through brand
pyramid.
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Figure 1: Brand pyramid
(Source: Patrick Mad Mork, 2018)
In this analysis of the customer is done who is addicted towards one brand only. The design of the
pyramid is done in basic five stages that are described below:-
Product features: Cadbury includes numerous products and its products include common
characteristics and due to this large number of audience are attracted towards the product belonging to
every age group. It supports in developing stronger brand base by meeting demands.
Functional benefits: The brand main purpose shows product quality and in no case it compromise.
Thus, due to this, business cost is maintained.
Emotional benefits: Foremost, the customer needs and employee’s reason for conducting out the
routine efforts so as to fill the gap by giving tastier products. Further, the emotional touch in the product
also supports in branding of Cadbury (Baldus et.al. 2015).
Core value: The needs of all the age group are identified and accordingly strategies are to be developed
that determines the business value that are based on leadership, experience, integrity and team working.
Branding idea: Cadbury is the reasonable pricing brand affordable by middle income age group and
because of this point spreading brand idea is important to collect more bases of customers towards
Cadbury products (Aaker and Joachimsthaler, 2012).
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Marketing department role in developing brand equity
The crucial factor of brand equity is to raise the firm brand value in the scenario of marketing. The
increment in equity will help the strategies of marketing in sharing the brand awareness and developing
the brand picture in customer eyes. The marketing department of the Cadbury creates several
distributions channels and pricing strategies accordingly.
The role of marketing team is significant for marketing strategies development to have awareness in the
customers that team is making efforts to meet the demand accordingly. The product awareness supports
in customer relationship development and due to this role of pricing has been increased. With this, more
customer attention can be achieved and market demands and product value will also be raised and
acknowledged (Feng et.al. 2015). Due to this, customer attention and price dynamics had to be managed
equally. The product innovation is not the major role but marketing department supports in researching
before innovation and after in making popular. The firm can select the suitable transportation channel to
get the satisfaction of the customers.
Strengthening brand equity strategy (M1)
Brand equity increment can be conducted through correct model execution through Keller’s model. As
per this approach, the main purpose is to target on brand identification. On this concern, it is significant
to do market research for customer desires addressing and to spread the knowledge to offer the similar
Cadbury products in market (Aaker and Biel, 2013). The model shows that it more effective for the
enterprise to communicate the unique brand performance by visualizing the images of the Cadbury
products. The brand response is to signify that appropriate communication medium had considered to
show product innovation that is not at all connected with competitor’s products. The picture reflects the
relationship with customer significance by recognizing the real inclusion, regular purchases and attitude
links.
Brand extension, reinforcing and revitalizing brands strategies
Brand reinforcement mainly targets on management of brand equity by reflecting the new customers
through branding. For having reinforcement in brand, the creative taste should be assured in present
products of Cadbury. While on next side, brand extension is approach where Cadbury can carry out the
new product segment by considering brand advantages that are developed already (Wheeler, 2017). For
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example: Cadbury can go into the beverages or chocolate flavour drinks as brand extension. Irrespective
of innovation and creativity, reinforcement can be assistive in showing the sponsorship, events,
advertisements and many other things. In any case if the firm is not earning sufficiently in any of its
product then they can opt for brand revitalization and awareness.
Appropriate and validated examples within an organizational context (M2)
To make the study simple the simple assessment and comparison has to done. It is because of the MNCs
that influence the Cadbury products but with effective use of Keller’s model the necessary outcomes
will be reflected. The customer base should be based on loyalty and it will be achievable only when
daily feedbacks are received and solved instantly to meet customer demands. The market base expansion
can be enhanced by increment in brand awareness (Keller, 2013). The customer loyalty can be
accomplished by trust of the customer which will be beneficial for the organization. The customer
preferences and market needs are developed consistently and due to the importance of innovation are
also rising up.
Conclusion
Through analysis, it can be referred that marketing tools are very significant for increment in brand and
to spread the public awareness. The given tools supports in introduction of new product by reflecting the
product traits along with merger if any through brand extension. The branding will help the Cadbury to
show visibility and transparency that raises business performances. Brand reflects the identification of
product so that enhanced customer loyalty and trust can be met. The suitable tool of marketing is
effective to give quality assurance and brand positioning in market scenario.
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Task 2
1. Analyze the organization’s brand portfolio strategy
The strategy of brand portfolio is the integrations of brand with the objective of accomplishing the
customer needs for various segments majorly. The supportive strategy is helpful for meeting the high
revenue but with involvement of challenges as well. Cadbury can also take the brand expansion by
framework development to offer customers the good and health taste and quality. There are two brand
portfolio strategies and the organization uses it accordingly:-
House of brands: The branding is based on brand subset rather than organization brand. The major
focus is on motivation and development of sub brands irrespective of taking care about the parental
brand. In these organizations, main investment is done in subsets for promotion in order to meet the
profits. The strategy is useful in increasing the brand but along with that functional management is quite
critical.
Branded house: It is the main parental brand and the subsets are developed in order to integrate the
services and products. For example: Cadbury is the main brand and its subset is aligned with the
Cadbury name only.
Figure 2: House of brands of Cadbury
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(Source: Angela Roche, 2018)
2. Provide an illustration of the hierarchy management of brands within organization’s portfolio
The brand hierarchy management is considered as the brand designing through various services and
products are changes accordingly. In hierarchy structure, the decision making is laid on sub brand
management. The listed below are the branding levels that are described below:-
Endorse branding: The brand structure is developed through product ranges that are merged with the
main brand. It is supportive in getting the customer trust, loyalty and commitment for the products. It is
just like branded house in which major driver is parent brand (Cox et.al.2014). Brand endorsement also
shows the house of brand strategy also but in this main importance is given to sub branding.
Umbrella branding: It is suitable approach as it applies only one name to sell all the products that they
are offering. The brand equity firm uses this approach mainly to get more brand recognition. The
hierarchy is generally maintained through positive connections through employees and customers. In the
marketing context, as sales rises the parent brand name also increases.
Product branding: The goods are sold out without any inclusion of any main brand. The Cadbury bars,
chocolates, beverages, cookies, desserts, ice-creams, spreads and many more offered under same brand
name (Di and Alhaddad, 2014.).
3. Analyze strategies used for managing the equity of the brands within the organization’s portfolio
Cadbury can use different strategies for the purpose of managing equity of brand and some of them are
explained as:
Building amazing value in the offerings: Customer has the tendency to choose the product of Cadbury
that are within the portfolio. It is necessary to add value in the product to offer to the customers. This
will lead to have excellent and well managed brand equity (Severi and Ling, 2013.). For example,
Cadbury has managed brand equity with adding quality in the chocolates and other products that is
maximising the value. It is necessary to add more in quality or range for managing equity effectively.
Continuous differentiation: A brand is needed to be formed on the pillars that will meet with the
differentiation needs over the years to meet with the changing business environment. It is necessary for
Cadbury to differentiate its current products with that of the competitors. This might include winning the
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new market share, offering new product, changing packaging or offering new taste to the customers.
This would lead to enhance the value of the products in the world.
Building brand awareness: It is necessary for Cadbury to create and build brand awareness and bring
development in the business portfolio. It is necessary to focus on promotion of the products in the
existing or new market with the platform of social media that will help in raising the brand equity
(Singh, 2012).
Focus: The focus of the Cadbury must align with focussing on the brand elements and building brand
equity that will help in managing the brand as well. Focus is based on brand recall and brand awareness.
For example, low prices are offered to the customers and regular focus on advertising is made to gain
high attention of the customers (Fill and Roper, 2012). However, as per the brand equity model brand
equity can only be enhanced by brand awareness, developing identify, communicating about value of the
product and offering responses to brand.
These are some of the strategies that are necessary for Cadbury to follow for managing the brand equity
and offering positive value to the brand for increasing visibility and strong mouth publicity in the
market.
Portfolio management, brand hierarchies and brand equity using appropriate theories, models
and frameworks (M3)
Branding is concerned as one of the most important tools that is regarded as the positive marketing
strategy for gaining attention of the customers. With this, brand can gain more prevalence to meet with
the needs of the customers. It is necessary for the Cadbury to enhance the market share and offer that
products that will differentiate it from the competitors. Portfolio management is concerned as matching
investment with the objectives with managing human resources and balancing the risk against
performance. Cadbury is required to focus on the strategies of the brand equity to exist in the current
market (Severi and Ling, 2013). However, Cadbury is currently on the effective on the appropriate
position only it requires focusing on bringing offering differentiation in the products and gaining the
competitive advantage in terms of offering quality and reasonable products. This will manage the
effective brand equity and enhance customer attraction towards the new products.
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Task 3
1. Strengths of the brand that can be leveraged
Brand leveraging is the strategy of using the power of an existing brand name that support the business
for supporting business entry into the new product related category. This helps to communicate the
valuable product information mainly to the consumer. It is important for Cadbury to leverage the brand
by changing packaging, quality, color, adding flavors, etc. For instance, Cadbury is prominent across
different locations. It mainly uses “Cadbury’s Dairy Milk” as main name that is being more natural and
customers are able to identify it easily. Though the colour of the packaging is more attractive that
children, families and other people is able to identify about the product. Cadbury offers the range of
about 276 products that includes bars, bags, ice creams, desserts, etc (Aaker and Biel, 2013). Despite
having such diversified Portfolio Cadbury promotes its brand and consumers are well informed about
the product.
Leveraging the brand of Cadbury can be effective as it have effective brand image within the market that
can help to enhance the business revenues, efficiency and expansion of the business at domestic and
global level. For this, promotion and range in the current product Dairy milk can be offered that includes
shakes or smoothes can be added to the product range but it must be known by the name of Dairy milk
as people are aware about the name effectively (Singh, 2012).
Cadbury have enough strength in terms of having the wide channel of distribution that has presence in
almost 60 countries. It has the strong portfolio such as dairy milk, Bournvita, Oreo, Five star, etc. In
addition, it has strong positioning in terms of Brand loyalty, brand equity and expansion of the brand
name (Singh, 2012). Due to marketing and stronger branding, Cadbury is able to charge premium range
for the products with the high brand equity. However, Cadbury have the stronger advantage in terms of
differentiation from its competitors.
2. Weaknesses that may need attention providing some possible suggestions
Extension of the brand is one of the effective decisions but within this business face some of the
challenges that are required to be identified by the business. The failure of the strategy can be mainly
seen of the quality is not up to mark that lower down the importance of the brand. The latest product
innovation requires shaping positive and negative impact on the brand reputation. Mainly for this, prior
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