Cadbury's Brand Extension: Applying Marketing Principles Analysis

This report analyzes the significance of marketing principles in introducing a new product line, specifically examining Cadbury's brand extension into cheese. It identifies external factors impacting the business, performs a comparative analysis, and assesses current brand values to inform better policies for the new product. The report details Fairy Washing Up Liquid's potential entry into the UK car detergent market, including target market analysis using STP, and explores factors using PESTLE and Ansoff's matrix. The proposed new product, "Fairy Best Car Washer Detergent," emphasizes reusable packaging and product quality. The competitive landscape, featuring Kärcher detergents, is also examined, highlighting the importance of market research and established brand image for successful brand extension.

Principles of Marketing

Executive Summary:
The aim of the report was to identify the significance of marketing while introducing new
product line in the market. Also, the report had analysed the Cadbury new brand extension in
cheese along with the various external factors that would affect the business. Also, comparative
analysis along with the current brand values of the firm had also been identified so that better
policies could be developed for the new product.

TABLE OF CONTENT
Executive Summary:........................................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Background on the chosen brand.................................................................................................4
Methodology................................................................................................................................5
Findings.......................................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Brand extension is when the organisation wants to grow and earn more revenues in the
certain target markets. Further, the present report is based on the Fairy Washing Up Liquid
that is introducing the new product line of car detergent in UK market. Also, the study will
identify the new target market and various external factors that would affect the operations of the
business. Lastly, comparative analysis along with the strategy in terms of packaging and logo to
be used will also be discussed under this report.
MAIN BODY
Background on the chosen brand
The fairy washing liquid is owned by the multinational products company and the sells variety
of the detergents for the household and laundry purposes (Poerwadi and et.al., 2020).
Furthermore, in certain reports it was found out that the global detergent market has been
increased on large sale and also more people are interested in purchasing such products.
Source: Statistic UK report 2022

Thus, for the above graph it can be said that the overall market value had been increased and is
expected to rise in 2026 with the growing population and demand among the people. Also, it is
reported that overall market share is around approx. 7.2% as in 2017-2022
Methodology
For this report secondary research had been conducted where the data, graphs and other
relevant information was gathered through books and journals. Also, the data was sufficient as it
was all collected from the verified sources that have already done research on the detergent
industry (Park and Kim, 2018). Thus, it will help in producing more positive and detailed
outcomes for new things that have been identified.
Findings
 Existing brand values: The company hold core values for the honesty, integrity and
transparency so that greater brand loyalty and customer satisfaction could be given to all
target customers.
 Description of the target market: For selling new care washer detergent to masses the
target market would be analysed through the STP analysis that is as follows:
Particulars Statements
Segment All people living in and around UK that
are owing the cars
Targeting All age groups above 15 and gender
would be able to consume this product
for removing the car or vehicle dirt
Positioning Better quality and use of social media to
promote various features of new product
line (Huang, 2020)
 Analysis of the New Market:
PETSLE analysis
Political
Various factors like political
instability had to be taken into
consideration so that sales of the
Social
Various societal customs, beliefs and
attitudes had to be known so based on
that different packages and varieties of

detergent might be increased. detergent might be sold in the market.
Technological
Technology needs to be upgraded
so that faster processing might be
done and large sales of goods
could be assured.
Economical
Higher Inflation rate and various import
and export restrictions etc. has to be the
keep in minds by the firm while carrying
out various business
Ansoff’s matrix:
The one that would be selected from four elements of this matrix would be product
development where the new product would be launched in the existing market. Furthermore,
this car washer would save the additional cost of car detailers.
 Explanation of the New Product
The new detergent car product would be named as “fairy best car washer detergent” that would
be available in different sizes and is ready to use (Athwal and Harris, 2018). Also, the packaging
would be done through reusable material like paper bags that would be environmental friendly. It
would position through product quality as it would contain no harmful substances.
 Competition
Particulars Fairy car washer detergent Kärcher detergents
Product Car washer is the new
products category that is going
to be added within the existing
product line
It is German owned
company that specialised
in sales activities of the
high-pressure cleaners ,
wash water treatment
etc.
Pricing Competitive pricing strategy
would be used to attract
customers
Premium pricing
strategy is been used as
it provide the quality
products in various
markets

USP High quality products and
brand image would increase
the sales
Customer loyalty and
increase markets share
would help business
gain success
CONCLUSION
From the above analysis it can be summarized that brand extension it is crucial aspect and
hence it needs to be undertaken by the company with full market research and analysis.
Furthermore, study had identified fairy brand values along with target market and the growth
strategy that would allow the firm to introduce the new brand extension in the market. Lastly, the
report had specified that this brand extension would be successful because it had already
established brand image and groups of loyal customers across various regions.

REFERENCES
Books and journals
Athwal, N. and Harris, L. C., 2018. Examining how brand authenticity is established and
maintained: the case of the Reverso. Journal of Marketing Management. 34(3-4). pp.347-
369.
Huang, J. S., 2020. Feedback effect of online brand extension: an empirical analysis of
newspapers in Taiwan. Chinese Journal of Communication. 13(4). pp.389-406.
Park, J .H. and Kim, S .I., 2018. Brand extension strategies for Efficient utilization on office
space-A Study on Brand extension of Starbucks. Journal of Digital Convergence. 16(2).
pp.299-304.
Poerwadi, S. and et.al., 2020. Influence of brand extention strategy, brand image and brand trust
on coffee product’s brand equity. International Journal of Marketing Studies. 11(3). pp.1-26.
. 2022. [Online]. Available through: <>