Cadbury: A Comprehensive Analysis of Brand Strategies and Inventory

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This report provides a comprehensive analysis of the Cadbury brand, exploring its rich history dating back to 1824, its global operations, and its position as a leading confectionery company. The analysis covers Cadbury's mission, vision, values, and objectives, along with an in-depth examination of its brand elements, including logo, name, slogan, tagline, and color, as well as its product attributes. The report delves into Cadbury's brand inventory, including brand attributes, positioning, price, distribution, and the 4Ps of marketing. It examines the company's marketing communication strategies, branding strategies, and brand portfolio. A key focus is the consumer analysis, including motivation and segmentation. The report also highlights the company's marketing communication strategies, celebrity endorsements, and the use of both central and peripheral persuasion routes. The report concludes with an overview of Cadbury's success, highlighting its ability to meet consumer needs and maintain brand loyalty through innovation and effective marketing.
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Misision, Vision, Values, Objectives, Major competitors, Brand elements,(logo, name, slogan, tagline,
color)
Brand inventory ( Brand attributes, Brand positioning, price and distribution, 4P’S, brand portfolio
(organigrama),
1. History
2. Operations
3. Consumer analysis
4. Brand inventory: brand elements (logo, name, slogan, tagline, color) / Product attributes
5. Marketing communication
6. Branding strategies (distribution, pricing, targeting, positioning)
7. Brand portfolio
8. Mental map
9. 4P’s
1. History
Cadbury chocolate is one of the world's most popular brands, with net sales of more than $3 billion
in 2016. But it did not become one of the most famous chocolate brands in the world overnight. It
has a nearly 200-year history, beginning in 1824 when John Cadbury opened a grocery store in
Birmingham, England, selling cocoa and drinking chocolate among other items.
The move from a production-based to a marketing-oriented approach, which includes improved
branding and innovative product appeals, is more in line with the perception of Britain's second
largest confectionery company.(p513)13
Cadbury unified its strengths in production, manufacturing, management, distribution, and
advertisement after several years of adaptation and experimentation, and gained control of the
British confectionery industry. (p513) The value it provided to customers convincingly emphasised
both price and quality, thus counteracting later market theorists' nostrums.(p513) 14
During the interwar era, Cadbury gained a significant lead over the confectionery industry. It was
able to undercut rivals, stimulate demand, and capture customer loyalty through mechanisation,
economies of scale, and internal efficiencies. (p517)
The consumer's desire for rounded, easy prices complicated Cadbury's focus on price reductions.
Purchases were often made on the spur of the moment and with ease of access to points of sale,
highlighting the company's focus on distribution channels and its relationships with wholesalers and
retailers. (p.522).
Greater product differentiation, shifting customer tastes, and the living standards all indicated that
the essence of British confectionery marketing would remain fluid. The benefits of standardisation
and lower costs had not vanished in the market for premium brands.
The commodity that drove the strategy of standardisation and operational productivity was Dairy
Milk. (p.526)
Cadbury's greatest achievement was to satisfy the need for better quality at lower prices. (p.527)
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Cadbury's value proposition and Dairy Milk's accomplishments were dependent on the production
and marketing functions remaining central. (p.528)
Cadbury is a world-renowned confectionery company with a diverse range of chocolate, gum, and
candy labels.
2. Operations
In present Cadbury operates in 50 countries world-wide and it is the second largest in the
confectionery segment globally, after his main competitor Mars. Dairy milk is the most successful
product, it is a traditional sweet of Indian culture, very popular in festivals. For several years,
Cadbury Dairy Milk has dominated the chocolate industry. Today, it controls 30% of the Indian
chocolate market in terms of value. Cadbury Dairy Milk began in Bournville, England, in1905, but the
journey of chocolate lovers in India began in 1948. When most Indians think of Cadbury, they think
of the pure flavour of Cadbury Dairy Milk. In 2005- awarded NO.1 most trusted brand in
Mumbai.
3.
Cadbury Mind map
Performance People Image
4. Consumer analysis / Brand positioning
Motivation is characterised as the internal driving force that propels people to take action.
When people's needs, wants, and desires aren't met, they experience tension, according to the
model of motivation process (Schiffman et al, 2008).
Abraham Maslow developed one of the most well-known theories of human motivation,
which explains how customers experience satisfaction with goods and services at various
levels of need. Physiological needs, protection and security needs, social needs, ego needs,
and self-actualization are the five basic levels of needs, according to Maslow. According to
the theory, humans seek gratification from the lowest level (physiological) first, such as food,
Usually
Celebration
Affordable
All ages
All social
categories
Quality
Taste
Innovation
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water, air, clothes, and sex. People will pursue higher level needs, such as safety and
protection, after the first level of needs is met.
Chocolate is associated with physiological needs, implying that it is a low-cost, competitive
commodity. As a result, it requires a good key to overtake Marks-Wrigley as the second
largest confectionary market (Conor Carroll 2009). This is a brand in and of itself because
when consumers try a product, they are still concerned about the brand name, which not only
assists customers in identifying their needs and satisfying them, but also assists advertisers in
standing out from their rivals. For this business, which has a strong brand and a long history
dating b ack to 1824 (Conor Carroll2009), it is more effective in gaining customers'
confidence and keeping them as loyal customers. As an example, when he goes to the store to
buy a bar of chocolate, he might consider Cadbury, despite the fact that the price may be
higher than other products, because of the high reputation and quality brand, customers
would pay a higher price for a branded product that they feel has a higher value.
Cadbury not only uses campaigns to promote social concern in their customers, but they also
have a special approach to stimulate their farmers and staff, such as providing more bonuses
and incentives to workers in Ghana and supporting the local community. (Conor Carroll2009)
This is significant because when consumers try Cadbury chocolate, they may believe they
have already paid a fair price for a product that helps workers and contributes a small part to
society's support.
When we consider Cadbury, we can see that they strive to meet the needs of their customers
as best as they can, even going above and beyond what they want, such as Cadbury
Celebrations, which was created to replace conventional gift choices during festival seasons
with a pretty box and nice packaging that is ideal for gifting.
Cadbury has also launched an after-dinner sweet that is aimed primarily at Indian consumers.
Since people in India have a habit of having a sweet dessert after dinner, this product can take
the place of traditional sweets, which are inconvenient and time consuming to prepare. The
commercial focuses on adults rather than children in this section. From this perspective, we
can see that Cadbury is segmenting and positioning their product not just for children, but
also for adults, who are referred to as potential customers.
Cadbury caters to a wide range of consumer segments, including milk chocolate, dark
chocolate, chocolate flakes, chocolate powder, chocolate drinks, and a variety of other items.
Cadbury seeks to offer a sense of convenience and choice within the same brand by targeting
a wide range of consumer segments, lending the strength of their overall brand value to all
Cadbury brands. Customers profit because they can now buy a variety of goods under the
same name, knowing that the consistency, packaging, and flavour will be consistent, rather
than risking trying different brands to buy different chocolate products.
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Maslow's hierarchy of needs, model of motivation, and elaboration probability model were
used to see how they are applied to the business in terms of segmentation, targeting, and
positioning, enabling the company to gain significant market share and generate consumer
involvement in order to build greater confidence and brand familiarity through a fun and
casual approach to teaching corporate values to their customers.
Demographic – age: all group ages
- gender: male and female
- income: the price it is affordable; it is accessible for all categories
Behavioural – it is a chocolate that can be bought anytime, it is not just for special
occasion (even the brand it’s always doing special packaging with every special
occasion as: Mothers’ day, Valentin’s day, Easter, etc)
5. Brand inventory: brand elements (logo, name, slogan, tagline, color)/ Product attributes
Cadbury's iconic tagline evokes strong emotions in viewers, emphasising the importance of
eating dairy milk during happy occasions and family gatherings. The purple colour is very
appealing to children and draws their attention. Purple is a colour that goes well with other
colours associated with happiness and joy. It is easy to use in the countries it serves. Its
products are never in short supply, and it goes out of its way to ensure that consumers are
pleased with the quality and taste of its offerings. It changes its packaging on a regular basis
to keep consumers interested, as the same packaging might bore them. However, the colour
of the background is always purple. (Cadbury,2018; Bartleby, 2018).
Cadbury, 2018. About us [Online] Available at: https://www.cadbury.co.uk/products ,
Accessed on …
Bartleby, 2018. Marketing Audit of Cadbury [online], Available at:
https://www.bartleby.com/essay/BRAND-AUDIT-OF-CADBURY-DAIRY-MILK-
FKL6N3EK6ZYA
Products attributes
Cherry Ripe-rich 'Old Gold' Dark Chocolate smothers ripe juicy cherries and moist coconut.
Crunchie-golden honeycomb smothered in Cadbury's Milk Chocolate 'Dairy Milk'
Flake-delicate, crumbly strands of Cadbury's 'Dairy Milk' chocolate
Picnic combines delicate crisp wafer fingers, chewy caramel temptation, and rice crisp
goodness, all generously encased in Cadbury chocolate.
Roses-a delectable combination of milk and dark chocolates, perfect as a token gesture for
any occasion.
Dairy Milk, Australia's favourite chocolate, contains the goodness of a glass and a half of rich
full cream milk in every 200g.
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Benefits-the qualities of each brand must be converted into practical and emotional benefits
for the customer.
Values-Cadbury's mission statement clearly states, "Cadbury means quality"; this is our
guarantee. Quality is the foundation of our credibility, and our dedication to continuous
improvement will ensure that we keep our word.'
Cadbury personality is defined by its taste, purple colour, and the glass and a half symbol.
6. Marketing communication
Cadbury products and ads that emphasise ego needs, which are more focused on self-
acceptance and self-esteem, such as Cadbury Perk, have already targeted this idea to
adolescents.
Cadbury Perk also includes a message that it is still available for teenagers' convenience
whenever and wherever they need it, and it has become a new mini snack on the market.
Furthermore, adolescents and children are the majority consumers and the most significant
segmentation and positioning in the confectionery industry. When adolescents try Cadbury
Perk, they may feel as though the product was made for them and represents a youthful,
healthy, and innovative lifestyle.
If consumers are inspired, they are more likely to process information other than price to
assess the quality of a given product, according to Rao and Monroe (1988). This is significant
because Cadbury often creates competitions and commercials to increase customer
involvement in their products and encourage them to select their brand. This participation, on
the other hand, is limited to people who have a clear personal connection to the product.
(Wohlfeil and Whelan2006, citing Coulter et al 2003) This type of event marketing allows
marketers to include interactivity, personal sharing of experiences with others, and learning
more about the brand in a casual and relaxed environment, all while avoiding consumers'
natural inclination to disregard corporate messages that appear elsewhere.
Cadbury dairy milk is well-known among children and teenagers because it is not only
inexpensive but also tasty. Children and adolescents are known to have poor evaluation skills
because their reason for purchasing Cadbury is a sweet tooth (schiffman et al 2009). This
target audience is not concerned with product information; rather, it is the tangible factor that
motivates them, which means that this group can be persuaded through a peripheral path.
Celebrity endorsements, events, and advertisements, for example, are all promoted. In
addition, a range of assortments of "Dairy Milk" are being launched into the market to meet
evolving customer tastes and propel the UK's favourite chocolate brand forward.
The central route is another form of persuasion route that is used to illustrate how to
convince consumers who have high assessment ability (high involvement) and fall into
the adult target category (Schiffman et al 2009). When one grows older, they become
more aware of their wellbeing and realise that something sweet contains fat and calories.
However, Cadbury dairy milk appeals to this audience by using a marketing campaign
featuring one glass and a half of milk, which sends the message that one Cadbury bar
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includes nutrition and proteins, making it nutritious and not unhealthy. In addition, the
company emphasises packaging, style, and sizes in order to meet customer demands.
7. Branding strategies (distribution, pricing, targeting, positioning)
Customers like Cadbury'Dairy Milk because of its flavour, consistency, and ease of use. Since ‘Dairy
Milk' is becoming more of a staple and impulse form of good, the distribution of chocolate bars and
confectionery is critical.
8. Mind map
9. 4 P’s
Conceptually, the term ‘marketing mix’ was developed by Professor Neil H. Borden (1964),
to describe the right combination of a particular set of circumstances, namely the 4 key
elements that constitute the core of any marketing program run by a business. Philip Kotler
(2016) defined the marketing mix as ‘a set of tools that a company can use to achieve
marketing goals among the targeted audience’
Product
Cadbury's product line is very extensive, and they make the most of it. Cadbury's marketing
mix includes seasonal products, as well as products that are differentiated based on sales in
each region. There are several standard items available. Other Cadbury goods are themed
around holidays such as Halloween and Christmas. There are other items in their product line,
such as drinks and sweets, that are not only related to chocolates. Cadbury, too, likes to
categorise its brands according to demographic groups. We can gauge the targeted consumer
base of such a large product line up, and they cater to a wide range of people and their needs.
Cadbury has had a significant influence on the sector and is rapidly expanding.
Price
Cadbury goods are priced according to their consistency. A few goods, such as Bournville,
have high prices, while others are priced low to cater to the needs of other segments. They
also have other choices for people based on the size of the items. Cadbury has carefully
priced its goods to appeal to all of the targeted demographics. We discovered that the items
are packaged as gifts to make them more accessible to the public. They are mostly aimed for
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the holiday seasons, and these items are strategically priced to entice consumers to purchase
them. Cadbury's constant promotion has ensured that their goods hit consumers with a variety
of taste buds while still catering to the wallet's friendliness. Bournvita, a health drink, is also
priced with the target market in mind.
Place & Distribution
Cadbury has made a significant impact on the global market mostly due to its distribution
channel. The corporation has ensured that their products are available around the world and
that they cater to a large consumer base. Both urban and rural areas have access to the goods.
The distribution points have made the goods available to a large number of consumers, resulting in a
benefit for the company in terms of both customer base and sales. Cadbury is a globally recognised
brand with a presence in over 200 countries. This diagram depicts the distribution system and the
locations where the commodity has been distributed.
Promotion
Cadbury may promote itself in a variety of ways. The promotion strategy in the marketing mix is
carried out through television, posters, newspapers, the internet, and radio, according to our
findings. We can see that the company has gone to great lengths to ensure that the product reaches
the public and that customers are aware of its offerings. Cadbury has a number of different taglines
associated with its various brands. The business also has a number of brand ambassadors for
different brands, each of whom is used to leave an impact on people's minds. Cadbury has gone to
great lengths to advertise itself.
2. Product/Service Idea: based on your analysis above, describe and justify why your new
product/service is an attractive market opportunity. This should include an overview of your
product/service idea, perceptual maps, target market, and key competitors in the new category.
The brand extension that Cadbury want to lunch in the Romanian market are breakfast
cereals, ChiocoMilk. Like the paternal brand, this product wants to promote quality as the
main value. First of all the cereals wrapped in chocolate, will have the quality of the
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chocolate made with a glass and a half of milk, which will continue the tradition of the brand
for superior quality. Considering that Cadbery over the years has tried to educate adults that
chocolate is not only for children and is a very good source of energy for adults, same wants
the brand extestion to promote in the Romanian market. In general, when it comes to
breakfast, many adults give up this important meal of the day. Chiocomilk wants to
implement the fact that delicious breakfast is not only for children, but also adults can enjoy a
delicious meal in the morning, from which they can take their energy for the whole day.
This mix segment, is what differentiates our brand from the other brands, which put more
emphasis on promoting and segmenting the young ones. Our target market is a mix, starting
from children over 3 years and reaching adults over 50 years.
During the period2018-2023 the breakfast cereals segment is expected to rise at the fastest
rate in terms of both value and volume. Convenience stores are the most common distribution
channel for bakery and cereal products in the world. Breakfast cereals are projected to rise at
the fastest pace, with a CGAR of 9.4% from 2018 to 2023.
www.marketresearch.com. (n.d.). Country Profile: Bakery & Cereals in Romania. [online]
Available at: https://www.marketresearch.com/GlobalData-v3648/Country-Profile-Bakery-
Cereals-Romania-12400815/ [Accessed 13 Apr. 2021].
In 2020, all types of breakfast cereals are expected to increase in retail value and volume,
with double-digit value growth across the board. Breakfast cereal sales were boosted during
the COVID-19 pandemic due to their perceived health and nutritional benefits, especially in
terms of aiding in the development of a healthy immune system. www.euromonitor.com.
(n.d.). Breakfast Cereals in Romania | Market Research Report | Euromonitor. [online]
Available at: https://www.euromonitor.com/breakfast-cereals-in-romania/report [Accessed
13 Apr. 2021].
With the exception of muesli and granola, Nestlé Romania remains the market leader in
breakfast cereals in 2020. It has a growing market share and is the most popular breakfast
cereal and flakes for kids. Other competitors for the brand extension will be : Viva, Rollo.
To choose that market segment that the company can best serve, ChiocoMilk considered the
geographical, demographic, and psychographic characteristics of consumers, as well as their
possible reactions to the advantages offered by the product, or the possibilities of its use.
The market segment identified from the analysis of these variables is represented by a certain
category having the following characteristics:
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- inhabitants of Romania
- people from urban and rurals areas
- age: between 3-60 years
- annual income < 5000£
- level of education- middle education
- people who appreciate the qualitative taste, who understand that the tasty food it is not just
for kids. People that are happy and live youngful
Differentiating our own offer from that of competitors on the market, can be achieved
according to the attributes of the product, as the main advantage offered to the consumer. The
first and most important competitive advantage will be that our products have better quality,
in terms of the chocolate that are made the cereals, with a glass and a half of milk and address
to a larger target segment, then the competition.
Perceptual map
High Quality - Low Price – Chiocomilk, Nestle, Viva, Rollo
High Quality - High Price – Bjorg Bio, Turtle, Vitalis
Low Quality - Low Price- Fortza
Low Quality- High price- Corn Flakes
3. Brand Proposition: based on the opportunity identified above, this should include your
unique selling proposition, brand values, brand personality, brand identity/visuals and you
should demonstrate how these are mutually supportive.
Vision of Cadbury Dairy Milk
“Working together to create brands people love”.
In terms of brand extension: Breakfast it is the most important meal in the day. People from
all ages need to enjoy to eat breakfast and not just the kids need to enjoy this meal, but adults
as well, because it is a very important source of energy. (here, we can make a corelation
between the Cadbury chocolate, how the brand during time educate adults that the chocolate
it is not just for kids, we can aim to do same think for milk cereals for breakfast). The
Cadbury cereals, wrapped in chocolate gives you a special taste from the beginning of the day
and people from all ages will love to eat in the morning, or simply to take a snack, as a source
of energy.
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Cadbury Dairy Milk mission statement
“Says simply, ‘Cadbury means quality’; this is our promise. Our reputation is to built upon
quality; our commitment to continuous improvement will ensure that our promise”.
In terms of brand extension: The quality of our brand extension consists in the quality of the
chocolate, which is made with a glass and a half of milk, meaning that in combination with
milk will have a great taste, of milk chocolate, like in childhood.
Tagline- “Real Taste of Life” – for our brand extension we put accent on taste, because we
want people to enjoy taking breakfast.
The brand extension sustain almost the same values as the main brand and those are:
Quality - All of our operations are based on quality and protection.
Performance - We are guided by a desire to succeed. We compete in a challenging but equal
setting, and we are willing to take risks and act quickly.
Integrity - We have strong values and follow through with our promises.
Responsibility - We are responsible for our social, economic, and environmental
consequences. We want to improve our business and communities in this way in the future.
Brand personality framework
BRQ Model (week 5)
Unique selling proposition
Kapferer prism
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When?
Day to day use
Breakfast consumable
Snack
Brand positioning in the mind of target audience
Breakfast cereals
CHIOCOMILK
Why?
Offers reach and
qualitative taste
For whom?
Kids
Adults
All ages
Against whom?
Competitors like:
Nestle
(Nesquik,
Chocapic, Lion)
Viva
Rollo
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