Analysis of Cadbury's Brand Management Strategies and Techniques

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[BRAND
MANAGEMENT]

Contents
INTRODUCTION...........................................................................................................................................1
TASK 1 BUILDING AND MANAGING BRAND OVERTIME...............................................................................2
ROLE OF MARKETING DEPARTMENT IN CREATING BRAND EQUITY........................................................3
SUCCESSFUL STRATEGY FOR STRENGTHING BRAND EQUITY...................................................................4
TASK 2 BRAND HIERARCHIES AND PORTFOLIO MANAGEMENT..................................................................9
ANALYZE THE DIFFERENT STRATEGY OF BRAND PORTFOLIO MANAGEMENT AND BRAND EQUITY
MANAGEMENT........................................................................................................................................9
HIERARCHY MANAGEMENT OF BRAND WITHIN ORGANIZATIONAL PORTFOLIO...................................11
BRAND EQUITY MANAGEMENT.............................................................................................................12
TASK 3 BRAND EXTENSIONS AND LEVERAGE.............................................................................................13
STRENGTHS OF THE BRAND THAT CAN BE LEVERAGED.........................................................................13
WEAKNESSES THAT MAY NEED ATTENTION PROVIDING SOME POSSIBLE SUGGESTIONS.....................15
COLLABORATIVE AND PARTNERSHIP AGREEMENTS..............................................................................17
TASK 4 MEASURING AND MANAGING BRAND VALUE...............................................................................19
CONCLUSION.............................................................................................................................................23
REFERENCES..............................................................................................................................................24
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INTRODUCTION
The assignment provides a comprehensive overview of Brand management. A brand is a symbol
or signs that represent the individual identity of product or services. It distinguishes products of
different sellers. The several elements of brand comprise of name, logo, tagline and other
similar catchphrases. A brand has its own physical quality and personality that maintain the
relationship across the organization (Keller et al., 2011). The report also highlights the brand
management technique so as to add value to the service provided by the company. The brand
management strategies and approaches can help in evaluating the importance of brand
management.
This assignment throws light on the brand mark of “Cadbury”. Cadbury is the biggest brand
name in the chocolate and sugar confectionery market. It also outlines the idea behind the
positioning of the brand in the market. It frames an appropriate strategy in order to establish
the brand in the competitive market frame. Cadbury is a significant market player with a 70%
share in the market. It is the most lovable brand and has a substantial share of the sugar
confectionery market. The fastest growing segment of the company is a chocolate segment and
thereby contributing 9.8% average annual growth. The research concluded that the rural
consumption of Cadbury is around 23% whereas urban consumption is around 73%.”Dairymilk”
has changed the overall scenario of chocolate Industry. The success and growth of Cadbury are
driven by regular users of dairy milk (Tuan, 2014).
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TASK 1 BUILDING AND MANAGING BRAND OVERTIME
BRAND IS POWER
INTRODUCTION
BRAND
A brand is the most valuable asset of the company. It has its identity associated with the
product and services offered by the company. The brand is the essence of a company's identity
to differentiate its product from that of competitors. The positive image and perception of the
company are associated with its brand value. Thus, brand value is the reflection of how the
target audience reflects the company's product or services in the marketplace (Berthon, et al.
2015). Cadbury is famous on account of its popular brand “Dairy milk”. It is the brand of
chocolate manufactured by Cadbury.
BRAND EQUITY
Brand equity simply refers to the commercial value that is derived from the perception of the
consumer related to product or services. The Cadbury brand enjoys a high level of equity in the
market. This is associated with generating revenue for the business. The value of the brand in
the eyes of the customer describes the brand equity. The positive brand can help to boost the
company’s stock price in the market (Nirmali, et al. 2017). It is the premium that can be charged
from customer to measure the brand equity.
The process of brand building is an important aspect of the overall success of Cadbury. The
brand building process enhances customer loyalty in the market. It is an ongoing process to
position the company's product in the market. The steps of the brand building process in order
to gain competitive advantage are as follows:
Define the target audience
The first step is to identify the target audience in order to sell the product of Cadbury. It is also
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important to meet the needs and requirements of the target audience (Hanna and Rowley,
2011).
Brand Mission
The Cadbury is required to define the values so as to build the brand across the channels.
Furthermore, the company creates a mission statement reflected by its tagline. For example-
Cadbury tagline is "Taste like this feels".
Market Research
It is also important to analyze the competition in the market so as to develop counter strategies
to develop the brand (Hanna and Rowley, 2011).
Creating a value proposition
It is important to focus on the unique and valuable proposition of the product that makes our
product different from the competitors. The success of the brand is related to brand value and
uniqueness.
Determine Brand Guidelines
The set of guidelines and rules will help to maintain the consistency across the channels. This is
the crucial element to develop a brand strategy to achieve the overall objective of the business.
Market your brand
At last, the brand management process is accomplished, when the brand manager take active
steps to market the brand. This includes promotional activities, sponsoring events and
integrating the brand at the marketplace (Sevel et al., 2017).
ROLE OF MARKETING DEPARTMENT IN CREATING BRAND EQUITY
The marketing effect or outcome is the root cause of creating brand equity. The marketing
programs are related to product, price and promotion. The channel of marketing
communication through advertisements is an important root cause in establishing brand
awareness as well as creating an image in the minds of the consumers.
The marketer identifies the current state in the market and builds awareness of the brand
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among the customer. The marketing department increases the value of the brand by building
loyalty among the customer. They are responsible to reshape the customer thinking and build a
deeper relation and bond with the customer (Keller, 2017).
BODY
SUCCESSFUL STRATEGY FOR STRENGTHING BRAND EQUITY
o QUALITY PRODUCTS AND SERVICES
It is an utmost and crucial aspect to deliver quality products to the customer. The new product
and services should be bought to the market place only if it delivers value to the customer. If
the product does not match with the performance expectation of consumer, it will erode the
brand equity.
o COMPETITIVE ANALYSIS
An effective way to strengthen the brand is to analyze the market trend and competitiveness of
the industry. The most effective way to develop brand equity is to target the niche market and
get a hallmark of strong brand equity (Berthon et al., 2015).
o CONSISTENT BRAND IMAGE
The consistency followed by the company in delivering right value attached to the product or
services helps the company to develop a consistent brand image. Thus, consistency is the key to
success that will boost the sales revenue by targeting the potential customer in the
marketplace (Borkovsky et al., 2017).
o LOYAL TO THE CORE
Cadbury introduces a new product in the market so as to maintain customer loyalty. It increases
competition and develops a keen interest in the mind of the customer. The company also
provides different kinds of rewards for customer loyalty.
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[Figure: Customer Loyalty Rewards by Cadbury]
BRAND REINFORCEMENT
Reinforcing brand refers to innovation in product design, manufacturing and ensuring the
maintenance of brand equity among the customers. For this, marketer adopts several strategies
to maintain long-lasting benefits of the brand in the market. Cadbury also works on the
packaging and new design of the product to be in the line with market trends (Perkin and
Karelitz, 2013).
BRAND EXTENSION
This refers to marketing strategy to diversify new product category under the same brand
name. For example – Cadbury adopted extension strategies with respect to its Dairymilk brand.
The company added a new line of product in order to drive the growth in this sector and face
intense competition.
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BRAND REVITALIZATION
This is a marketing strategy to recapture lost source of brand equity and make efforts to
establish and identify a new source of brand equity. This can be done by way of product
modification and brand repositioning. Cadbury tool several initiatives in order to launch the
marketing programs that help the company to revitalize the brand.
For example – Cadbury changes its tag line from ‘Cadbury in every pocket’ to ‘Real taste of life’.
APPLYING CBBE MODEL
The model suggested by Kelvin Keller highlighted the four key levels in order to build a
successful brand. It is a customer based brand equity model. CBBE model provides various
factors that influence the beliefs, opinion and perception of the customer. Thus, Cadbury can
strengthen its brand image by applying this model.
Brand Identity
At the very first stage, the goal is to create Brand Awareness and make sure that the customer
recognizes the brand at the market place. Thus, the marketing department of the customer can
focus on the unique selling proposition in order to satisfy a particular set of customers.
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Brand Meaning
Another stage of the CBBE model is to identify and communicate brand value. It also focuses on
increasing the performance of the brand in terms of design, durability and serviceability. Thus,
Cadbury can increase its brand performance in terms of providing a reliable product.
Brand Responses
Brand response refers to ‘Judgment' and ‘Feelings' of the customer the customer judgment is
based on four categories; Quality, Consideration, Credibility and Superiority. The customer also
response to brand with respect to brand feeling.
Brand Relationship
Cadbury enjoys a loyal customer group. It does not only satisfy individual requirements but also
provides a matter of celebration. The company tends to focus on feelings, emotions of all age
group ranging from children to senior citizen .
Figure: CBBE pyramid of Cadbury
Source: Zhang, 2015
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CONCLUSION
Branding act as an important marketing tool to identify and distinguish the product. It is one of
the important parts of business strategy that helps in gaining a competitive edge in the market.
This adds to the superior value to the products and ultimately enhances the profitability of the
company. Therefore, it is viable to say that brand management is one of the important aspects
of every organization.
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TASK 2 BRAND HIERARCHIES AND PORTFOLIO MANAGEMENT
ANALYZE THE DIFFERENT STRATEGY OF BRAND PORTFOLIO MANAGEMENT
AND BRAND EQUITY MANAGEMENT
Brand portfolio refers to managing brand and sub-brand in the target market. Thus, the
management of the brand is necessary to deliver the profit to the undertaking. Brand portfolio
strategy is important to improve the product performance and provide the structure to
contribute to the organizational success (Brooks and Anumudu, 2016). It must be considered
during strategic decision of the company. Cadbury is truly an example to adapt and learn brand
portfolio strategy (Laforet, 2015). The ultimate strategies that drive the success of Cadbury to
flourish the competition are listed below:
o Branded House strategy
This is also known as umbrella architecture featuring a master brand name. Cadbury
adopted a corporate branding architecture such as Cadbury Dairymilk, Cadbury Gold,
and Cadbury Top-Deck (Rosenbaum-Elliott, et al. 2015).
o House of brand strategy
The branding architecture refers to featuring an individual product brand in order to
compete with the other brands in the market. In the sugar-confectionary industry, Mars
follow House of brand architecture that includes Mars, Snickers, Maltesers and others.
o Sub-Branding strategy
This carries two or more brand name to use mixed brands. The parent brand is
combined with sub-brands in order to create valuable meaning.
o Endorsed Brand strategy
The brand endorsement strategy provides a greater variety of positioning alternatives.
The brand is endorsed by the corporate or house name (Rosenbaum-Elliott, et al. 2015).
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o Hybrid Brand Strategy
The mixed strategies comprise a combination of all the above strategies and also play a
significant role in mergers and acquisitions.
Wide Product Offering with respect to Cadbury
Cadbury offers a diverse range of product such as dairy milk, Cadbury Milk Tray, Fruit and Nut,
Flake, Crunchy and others. It is the second largest confectionery brand across the globe. The
majority of success is contributed by its core business priority. The marketing concept of
Cadbury focuses on celebration and fun for the children.
Targeting and Market segmentation
Cadbury uses behavioural segmentation approach on the basis of customer decision-making.
The various chocolate segments are Break segment, Take-home and Impulse segment.
Thus, the brand portfolio strategy is important to enhance brand equity. The well- managed
brand portfolio provides a link to manage overall customer perception. Thereby, effective brand
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