Principles of Marketing MG412: Cadbury Brand Extension Strategy

This report delves into the marketing principles behind a brand extension strategy, focusing on Cadbury. It examines Cadbury's background, market share, and brand values, proposing a new product and outlining a growth strategy based on Ansoff's matrix. The report identifies the target market for the new brand extension, considers key trends and PESTEL factors influencing the idea, and provides a comparative analysis with competitors in the new market sector. The analysis uses marketing principles to align strategies and manage marketing activities effectively. Desklib provides access to similar solved assignments and resources for students.

Principles of
Marketing

Table of Contents
INTRODUCTION ..........................................................................................................................2
TASKS/MAIN BODY.....................................................................................................................2
1.Background on the brand include useful data such as market share, market size and trends in
sales.............................................................................................................................................2
2.Coverage of the existing brand values supported....................................................................3
3.A brief explanation of the new product with reference to what growth strategy the brand is
adopting. (Ansoff).......................................................................................................................3
4.Clear identification of the proposed target market for the new brand extension ....................3
5.Key trends and PESTEL issues that have influenced the idea of brand extension idea.........3
6.A comparative analysis of the brand extension with any key competition identified in the
new market sector.......................................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
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INTRODUCTION
Marketing principals are helpful in implementing the marketing strategy in order to make
the brand unique in the market. The report is going to highlight the background of the brand that
is Cadbury. With the help of marketing, companies can segment their audiences as well as
determine the suitable price for their products. Marketing helps to widen the market so that the
marketing activities can be accelerated in order to make the optimum utilisation of the resources .
The report is going to highlight about the new product in the market so that the new customers
can be engaged in the existing market. The report further explains the role of extension of brand
(Lim, 2021).
TASKS/MAIN BODY
1.Background on the brand include useful data such as market share, market size and
trends in sales
The company chosen for the project is Cadbury which is a leader in the chocolates globally and
a British multinational confectionery company which has a strong brand image with loyal
customers. It can be said that the product of Cadbury that is Cadbury dairy milk is one of the
oldest and successful product for the company operations (Alanzi, 2018).
Market share, market size and trends in sales
The chosen company has number of users in the UK and in global market that consumes the
chocolates of Cadbury on frequent basis. As per the Statista, 2022. the mentioned company has
attracted the number of audiences towards their services which are explained below-
Product Name Number of users
Cadbury dairy milk 23920000
Cadbury twirls 14802000
Cadbury fruit and nut 9313000
Cadbury crème egg 10850000
From the above data, it can be seen that chosen company has strong market presence (Cadbury
products ranked by number of users in Great Britain from 2018 to 2020 (in 1,000)*, 2022).
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2.Coverage of the existing brand values supported
The company uses various campaigns and advertisements to target the audience. Through the
quality products they established the strong trust of the potential customer. They use advertising
and various campaigns to connect with the targeting audience (Alanzi, 2018).
3.A brief explanation of the new product with reference to what growth strategy the brand
is adopting. (Ansoff).
Growth strategy
For the growth strategy, the chosen company can use additional features such as the use of
attractive packaging so that the people can be influenced for the purpose of purchasing. For
example, the chosen company can use the golden colour on their packaging with the logo of blue
colour. As per the given situation, the chosen company can use the product development strategy
in order to create the new product in the existing market. That can be done by performing of
several surveys and strategies in order to increase the information about the need of the audience
and produce the product as per the demands of the customers ( Ansoff and et.al., 2018).
4.Clear identification of the proposed target market for the new brand extension
Identification of the proposed target market for the new brand extension are explained below-
Description of the Target Market- Segmenting, targeting and positioning can be used to
target the audience of the market. Such as the UK market can be segmented on the basis of
geographic region, income statement, human behaviour and many others.
Targeting- The audience can be targeted by launching a rage of chips that includes the
flavoured and healthy chips as people are getting aware for their health. Through these products
company can attract the fitness freaks and quality enthusiast peoples with lower and middle class
individuals towards the products (Wordsworth, 2018).
Positioning- For the matter of positioning the company can use the bundle of pricing strategy to
attract the customers of the targeted market.
5.Key trends and PESTEL issues that have influenced the idea of brand extension idea
As per the case, political factor is said to be one of the most important force in the operations.
At the moment, UK political parties are unstable so, any change in the law or high tax rate on
food products can impact the business adversely. Second factor that can impact is the social
factor that can impact the operations of the company. The people of UK shifting towards the
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healthy lifestyle. The demand for baked and healthy chips can affect the company in order to
attract particular customers of the market.
6.A comparative analysis of the brand extension with any key competition identified in the
new market sector
An Explanation of the New Product- The chosen company will launch the new range of chips
with the mixture of cheese, jalapeño, vinegar and low fat chips in the market. These chips will be
presented in an attractive packaging and manufacture with the premium quality of ingredients.
Competition- The main competitor of the given company is walker chips. It is one of the
leading company which has large variety of flavours and it has the best promotional strategies. It
has large variety of sizes which are easily available. Therefore, the mentioned company need to
focus on the effective strategy in order to reach audience by turning them into customers
(Cadbury and Cadbury, 2018).
CONCLUSION
It can be concluded from the above report that marketing principals are responsible for
creating the format for alignment that will support the company in managing the marketing plan
and activities. As mentioned in above report various models and researches were stated in order
to demonstrate the information for the purpose of audience and targeted market. The report
further explained the various elements of comparative analysis and ans off that helped in making
the possible strategies for the growth purpose.
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REFERENCES
Books and Journal
Cadbury, G.S. and Cadbury, B., 2018. Young Offenders: yesterday and to-day. Routledge.
Wordsworth, D., 2018. A History of Cadbury. Pen and Sword.
Lim, W.M., 2021. A marketing mix typology for integrated care: the 10 Ps. Journal of Strategic
Marketing, 29(5), pp.453-469.
Alanzi, S., 2018. PESTLE Analysis.
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2018. Implanting
strategic management. Springer.
Cadbury products ranked by number of users in Great Britain from 2018 to 2020 (in 1,000)*.
2022. Online Available at<https://www.statista.com/statistics/312031/cadbury-leading-products-
in-the-uk/>
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