Cadbury Brand Management Report: Strategies, Equity, and Analysis

This report provides a comprehensive analysis of Cadbury's brand management strategies. It begins with an introduction to brand management and its importance, highlighting tangible and intangible elements. The report then delves into the significance of branding, emphasizing its impact on consumer perception and market share. It explores Cadbury's branding practices, including its historical context and global presence. The report further examines brand equity, utilizing the Aaker Model to identify key components such as brand loyalty, awareness, perceived quality, and proprietary assets. It also discusses various portfolio management strategies, brand hierarchy strategies, and brand equity management strategies, detailing both active and passive portfolio management approaches. The report concludes by discussing techniques for measuring and managing brand value, providing a holistic view of Cadbury's brand management practices at both global and domestic levels.

BRAND MANAGEMENT

Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 What are the importance of branding and why it is important and how it can be applied on
business practices...................................................................................................................1
P2. Explain brand equity and the strategies or models to build and manage the brand equity.
................................................................................................................................................3
M1...........................................................................................................................................4
M2...........................................................................................................................................5
D1...........................................................................................................................................5
LO 2.................................................................................................................................................5
P3 Various types of portfolio management strategies, brand hierarchy strategies and brand
equity management strategies.................................................................................................5
M3...........................................................................................................................................8
LO 3.................................................................................................................................................8
P4 Management of companies at global level and domestic leveles......................................8
M4.........................................................................................................................................10
LO 4...............................................................................................................................................10
P5. types of techniques that may help in measuring and managing brand value.................10
M5.........................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Brand management is the process of analysing and planning the brand perceptions in the
market. One of the most important things in brand management is building good relationships
with the target market. The tangible element in the management of brand includes the product,
price and packaging. Intangible elements are the experiences of consumers attached with the
brand. Present study will lay emphasis on Cadbury. This is a British multinational confectionery
company which is completely owned by Mondelez International since 2010. This is the second
largest confectionery brand in the world after Mars. Company has established their business in
various counties that includes India, China, Russia and many more. This report highlights that
branding can be done with various marketing tools. It will also analyse the key components of a
successful brand strategy to build and manage brand equity. This survey focuses on different
strategies for portfolio management, brand hierarchy and brand management.
LO 1
P1 What are the importance of branding and why it is important and how it can be applied on
business practices.
The various companies create a name, symbol or design which is unique and uses as a
marketing practice is known as branding. It is important because it creates an impression on
consumers and attract clients and consumers to invest or buy the products. Branding of any
product needs a large amount of investment. Cadbury is the world's second best confectionery
brand. Cadbury is a very old brand founded by John Cadbury established in Birmingham, UK in
1824 and uses different types of branding plans to increase the growth of the organization.
Consumer always prefer those products whose quality and branding both are strong. Cadbury is
one of the brand that any customer would trust it even when they are blind-folded. The brand
name is so famous around the world that customers would trust any new product launches by
firm in the market (Steenkamp, 2017). Branding is very important as it helps in increasing
revenues and market share. Cadbury brand in marketing is so strong as it always gains new
distribution opportunities with the help of co-branding. Branding also help the organization when
enterprise is suffering from crisis. Branding also helps in extending the market worldwide by
building relationships with the distributors. For Cadbury the important thing is brand's equity.
The brand which is already famous in the market, it will create obstacles for other competitors to
target that area in the market. Another branding benefits an organization can have is the increase

of employment because of the well-known brand many people would like to work for them and it
will give company the most qualified and skilled employees that will help in increasing the
productivity level of the company. Cadbury has a most qualified and skilled employees that do
their task with full enthusiasm and concentration. They market the products well that aids
business in generating revenues. Cadbury is a well-known brand and because of its quality
products, they have power to negotiate with the suppliers and increase their profitability by
commanding higher price. Popular brand like Cadbury has gain the customer loyalty which helps
them to attract clients for its products and its easy for them to find new distributors on local and
global level. A famous brand doesn't lose their employees even if the employers turnover get
reduced because employees know that they are working for a well-known brand and they have
loyalty and purpose about company's work and are proud of it to be the part of them. A unique
brand distinguished from the rest as it will attract market with the unique quality product in
which competitors will have tough challenge to compete. With the strong brand a lot of investors
go after it because of it trust and high-quality product which helps in targeting audience.
Branding is important in the following ways:
Brand Identification
Branding is very important for any company to make impact on the market with its high-
quality and genuine products. It helps the company to increase brand awareness and how people
respond towards it (Ertimur and Coskuner-Balli, 2015). The main reason for branding is that the
company get recognized to the customers and clients who gets attracted by its logo design which
must be strong and easily remembered and creates an impression on the mind of the person.
Cadbury logo design is famous in worldwide.
Increase in Business Valuation
Branding is necessary as it increases business value for future, Cadbury is a well-
established brand and a lot of investors are creating business opportunities with the company. In
1999, Cadbury India posted that the growth in net sales was about 19% approx to Rs 511.08
crores.
Bringing New Customers

A well established brand like Cadbury with strong branding creates a positive impression on the
customers because of their high-quality and genuine products which helps in generating more
customers.
Employees Contentment and Fulfilment
A good branding company like Cadbury improves the satisfaction of employees as they
are working for a strongly branded company and feel proud on the work that they are doing and
truly stands behind the brand will make them feel more satisfied with their job. Branding build
trust within the consumers, clients and customers because of their genuine products and it also
supports advertising as Cadbury uses social sites like Facebook, twitter etc. to promote their new
products which will directly reflect the brand name.
P2. Explain brand equity and the strategies or models to build and manage the brand equity.
The equity in brand can be known as the marketing tool which describe the brand's value
and also help in determining the perception and experiences of consumer related to brand. It also
helps them to distinguish between other brands based on uniqueness, quality etc. The model used
in making brand strategy successful for building and equity in managing brand is Aaker Model
which is a model used in marketing that analyse brand equity. Five equity of brand components
can be identified through this model are:
Brand Loyalty
Loyalty cannot be gain within overnight, it depends upon the relationship with people
who are consuming, buying or selling the product which must be high-quality and genuine.
Brand loyalty helped Cadbury to reduce marketing costs by maintaining loyal customers. It also
helps in generating steady source of revenue and new customers and because of strong branding
Cadbury always have enough time to respond to its competitors.
Brand Awareness
Consumers always look for the brand which is well-established and can trust it with the
quality of the product. The familiarity of this product is speaking out worldwide (Pappu, and
Christodoulides, 2017). Cadbury always check the feedback on their website or social sites which
brings awareness about the brand. Consumer always look after the particular brand at the time of
purchasing, they can easily consider Cadbury brand because of its reputation and quality of the
product. As it distinguishes the product in terms of quality, price and uniqueness with other
competitors brand, it can be act as successful brand strategy to maintain the value of its brand.

Perceived Quality
It is the perception of people about the brand that they will always provide quality
products. The main thing about any brand is that they are providing high quality product which
give reasons to consumers to buy that product. Cadbury always provided genuine products with
reasonable rate which improved their perceived quality. The brand position of Cadbury is higher
than compared to other competing brands which makes them higher in the perceived quality.
When the perception of consumers unable to assess, then consumers review comes into picture
and decide the quality by the price. Customers choose that product which is well established and
Cadbury brand is famous worldwide and available on every local and global level.
Other Proprietary Assets
These assets include patents, trademark and channel relationships which helps the
organization to secure their unique products and give privacy to their branding which cannot be
used by any other company (Veloutsou, and Guzman, 2017). Cadbury had already filed the patents
and trademark of their company which will help them to secure their innovative products.
According to Aaker Model, for building brand equity the important concept for building
is brand identity which includes four perspectives.
Brand-as-product
Cadbury was established in Birmingham, UK. Cadbury scope is arising from higher
consumption in urban areas, from children to adult everyone like Cadbury products mostly
chocolates. Cadbury provides high quality and genuine products at the reasonable rates.
Brand-as-organization
Cadbury is a multinational confectionery company and operates in more than 50
countries because of its strong branding and quality products it is famous on both local and
global level.
M1
Brand can be successfully managed by firm by using Consumer based brand equity model
(CBBE). This model can be used by enterprise to set its name in market. First step in this is
salience, in which Cadbury can explain to consumer about their vision and mission. Next level is
organization performance and image of the brand. Productivity includes several types of factors
such as customer service and product satisfaction. It also questions the product functionality,
where reliability, durability and cost are very important to the customer's mind.

M2
Brand-as-person
Cadbury has an interesting brand personality as the advertisements are very imaginative
and have good sense of humour. Cadbury built the good relationship with the customers because
of its reputation and strong branding.
Brand-as-symbol
Visual imagery includes the logo of Cadbury which is the image of cocoa tree stylised on
the name of Cadbury which was registered in 1911.
D1
Branding also includes brand associations. It can help in creating positive attitude and also
influences consumers to buy this product. Cadbury has a lot of brands extension in the market,
therefore they attach with the brand association to boost the awareness amongst consumers.
LO 2
P3 Various types of portfolio management strategies, brand hierarchy strategies and brand
equity management strategies
portfolio management strategies
Portfolio management refers to managing the pool of investments such as securities and
other assets in a professional way, it is also known as asset management or wealth management.
Portfolio management is an art of managing the investment portfolio in a tactful manner by
choosing the best investment policy or plan for the individuals according to their income ,budget
etc. to undertake risks (Du Preez and Bendixen, 2015).
There are two main approaches of portfolio management:- Active strategy: This strategy refers to an investment strategy which supports Cadbury in
generating the maximum value of a portfolio, it basically focus on outperforming the
market compared with a specific benchmark. This strategy aids Cadbury in selecting the
variety of investment rather than investing in a particular market as a whole (Borkovsky
and et.al., 2017).
Passive strategy: This strategy is an investment strategy which enable an investor to make
investments according to the fixed strategy which does not involve forecasting, The managers
of Cadbury focuses on minimizing investment fees. The advantages of adopting passive
portfolio management strategy to Cadbury is lower down the costs, it reduces the uncertainties

of decision errors, provide tax efficiency etc (Buil, Martínez and Matute, 2016.).Brand
Hierarchy
Brand Hierarchy strategy is a beneficial means designing an organisation's branding
strategy graphically by presenting the nature and number of distinctive and common elements of
brand all across the firm's product, disclosing the explicit ordering. Cadbury's brand hierarchy is
based on realisation that a particular product which can be branded in many different ways which
depends on how many existing and new brands element are used and how they're combined for
any particular product.
There are two models under brand hierarchy:
 Branded house reflects position of firm in which company considered itself as a brand,
their products are the sub division of business or the brand, The advantages of branded
house is that , products of Cadbury can be share same market position, customers and
budget (Renton, Daellenbach and Davenport, 2016).
 House of brand is opposite of branded house : it can be defined as home brand for
numerous brands and each product is independent or has own brand name (DiMartino
and Jessen, 2016). Cadbury a multinational company owned by Mondelez international
Inc., an American multinational company which deals in confectioneries, food and
beverages. Mondelez international supports Cadbury in marketing and increase the
market share of the company.

Brand equity management strategies
Brand is the most valuable asset of a company and it is considered as essential part as it
increases the financial value, basically it refers as the “valuable things of brand”.Brand equity is
also considered in a marketing context. The owner of Cadbury tends to generate more revenue as
the customer have a mindset that the product is branded and the customers believes that the
Cadbury products are better than the products which are less known (Dessart, Veloutsou and
Morgan-Thomas, 2015).
Keller's equity model: Consumers perception plays significant role in success of business, if
people are positive that means firm can generate huge revenues. It supports leading the company
towards growth, there's nothing like a powerful and strong brand name. Keller's model has a
pyramid shape which has four levels which are as follows:
 Relationships
 Response
 Meaning
 Identity
Illustration 1: house of brand
(Source: Mondelez to funnel rising ad budgets into ‘local brands’ after internal
reshuffle, 2019)

 Relationship: Buyer's of Cadbury products feel a sense of connection with each other
because they're devoted for the same brand. At this level ,customers are tends to be
extremely loyal towards the brand and they continues to buy anything that offer by
Cadbury (Du Preez and Bendixen, 2015).
 Response: Cadbury live up-to its customers satisfaction as it deliver high quality food
products .A customers response can tells that how the brand had kept the promise of
maintaining the great quality products. Failing in delivering the promise can damage the
brand reputation and the company might not be able to recover the loss for a long period.
 Meaning: Cadbury involves in social causes, dedication towards customer service,
accepting feedbacks, etc. This helps consumers to feel proud of their purchase,
furthermore it also influences them to repurchase from the particular brand (Renton,
Daellenbach and Davenport, 2016.).
 Identity: A company needs to communicate to its customer related to the products which
they are delivering. Cadbury makes aware and give the right message to its customers
and also about the quality of food and its benefits they are delivering.
M3
Branded houses can be defined as brand architecture in which one product of the firm
become the popular and rest products become sub-brand. Whereas house of brand can be
described as term in which each product has unique features and known for their own features.
Products become the brand for the business.. This builds the brand very strong ,recognizable and
memorable. Cadbury deals in various range of confectioneries all around the world and has a
strong name after Mars. Cadbury have various division of products like Bars, Bags & boxes,
Beverages. Biscuits etc. These products are considered as the subsets of the main brand that is
Cadbury.
LO 3
P4 Management of companies at global level and domestic leveles
Brand leveraging : Some brands have capacity to be recognised by the people whenever
the customer thinks of a particular products whereas some brands are unthinkable to use for
another product. Brand leveraging strategy is used by a company who wants to enter the market
by introducing new product. It helps the product to grow fast as the brand name provide

customer a sense of trust related to the quality ,positivity and familiarity (Du Preez and
Bendixen, 2015).
Cadbury could use these effective strategies which are explained below:
Line extension strategy: It can be defined as technique when company introduce an additional
product in the already available product. It is an approach used by Cadbury for developing a new
product for the existing customers or potential customers. Line extension consists of adding of
new features to the existing products, this can help Cadbury in cutting down the product
development cost as no new product has been developed and results in increasing the revenue
cost (Renton, Daellenbach and Davenport, 2016).
Vertical extension strategy: A vertical brand line extension is a strategy which refers to
expansion of the brand into new markets. Cadbury used the vertical brand line extension strategy
by introducing various types of other confectioneries other than Dairy milk, This strategy can
also have negative impact as the customers can find the prices of new product unjustified,
however it can cause damage to the brand name. Cadbury could use vertical extension strategy to
increase profits by creating inferior and luxurious goods, this is beneficial in raising brand value
and increasing market performance of business (Dessart, Veloutsou and Morgan-Thomas, 2015).
There are three ways strengths of brands that can be leveraged:
 Identification of specific strengths :Cadbury has already established products in the
market that could supports the company in easily leveraging the brand as the brand
has good reputation in the market and established product could be favourable for the
development of new products.
 Adoption of new marketing strategies: Existing brand strategies could be use for
developing the new brand as all the strategies are tried and tested previously
(Borkovsky and et.al., 2017).
 Modification in new product: Modification can be done on the new product and this
would be a great strength because people are well aware with the firm and its
services.
There are ways from which weaknesses of brand that can be leveraged:
 The existing brand can be affected if the new brand takes over the previous one in
terms of innovation ,creativity and enhancement of utility, the sales of previous brand
can be affected.

 Expectations or anticipation of new product that the customers have can be a
weakness of the company, Cadbury should try and text their new product before
brining it in actual market (Du Preez and Bendixen, 2015).
 Another weakness of leveraging could be price. The brand should not set the prices
high , as this would be ineffective move to the brand image. Cadbury should not set
the prices too high ,it should be affordable and customers should feel urge to purchase
the product.
Collaboration and Partnership Agreement:
By Collaborating and partnering with the companies, Cadbury could leverage its brand.
Collaborating and partnership agreements are concerned with the documents with certain terms
and conditions between 2 or more companies. Both the companies should agrees upon sharing
and contributing resources, product development, people , finance, knowledge etc.
M4
Companies in a partnership agreement share common objectives, the essence is to work together
as a company (Buil, Martínez and Matute, 2016). Cadbury has become the largest confectionery
firm which has branches across the world. Cadbury could consider such collaboration with the
innovative company in the future in order to bring creative and innovative ideas in their new
products.
LO 4
P5. types of techniques that may help in measuring and managing brand value
Brand value is not just a financial number, it is a set of various factors like customer's
loyalty, the ability of brand to innovate products and technology and the most important is the
relationship with the customers. These techniques are explained as below:
Brand Awareness
Cadbury has strong brand presence in market this helps in raising the awareness of
product by engaging on social sites (Atwal, and Williams, 2017). They are available for their
customers to respond their comments and messages which built the relationship more strong.
They connect with the people by hosting some fun games whenever they launch any new
product. This engaging on social sites increase their brand value and also helps in measuring it
by the number of followers they are having on these sites. The brand like Whole Foods retail

industry are not that much engaged on social sites, therefore, losing the connection with their
customers.
Market Share
Cadbury has higher business value and market share because of its high-quality and
genuine products which they offer at reasonable rates. The brand value of Cadbury can be
measure by its quality and uniqueness of product in the market place. It would be measured
through brand extension on local and global level which helps in growth of the company and
results in high profitability. They have power to command higher prices as it is very famous and
well-established brand and also negotiate with the suppliers because of their excellent service in
products. Whereas, organization like Chipotle restaurant have low brand value because of its
poor services in the market.
Illustration 2: brand value ranking
(Source: What's in a name? For Trump, it could be $3.3 billion.v, 2016)
M5
Consumer attitudes
Brand value can also be measured by the attitudes of consumer by analysing the feedback
on the official sites of Cadbury. If there are negative feedbacks then the firm can work on it and
can offer satisfactory services to buyers. Positive impression of consumers are generally comes
with the brand name and its quality (Rosenbaum-Elliott, Percy, and Pervan, 2015). The other aspect

of consumer attitude based on its reasonable rates. Whereas, Trump real estate industry does not
have positive attitude of customers as they lack in services and quality.
CONCLUSION
Study can be concluded as branding is great techniques which helps in market the products
and creating positive image in the mind of consumers. It has helped company in knowing about
the consumer’s preferences because of which the customers are more attracted towards
organization. Branding has created goodwill in the market due to which firm has able to increase
its profitability aspects. The company has managed the consumer by increasing the quality of the
products and analysing the needs and demands of customers. This has also provided growth to
the firm. They have also analysed the purchase intent by checking out how many times the
customers check out the company’s profile. This has helped them in measuring the probability
how many consumers will buy the product. It has supported organization in attracting more
customers and increasing the profitability. It has assisted company in growing.

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Mondelez to funnel rising ad budgets into ‘local brands’ after internal reshuffle. 2019. [Online].
Available through <https://www.thedrum.com/news/2019/02/20/mondelez-funnel-rising-
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