Cadbury Soap Brand Extension: Market and Strategic Analysis Report

This report presents a comprehensive analysis of Cadbury's brand extension strategy, focusing on the potential launch of soaps. It begins with an executive summary, followed by an introduction to brand extension and its importance. The methodology section explains the use of secondary research. Findings include an analysis of Cadbury's brand values using Kapferer's Brand Identity Prism, the identification of the target market (young adults, particularly females in the UK), and a detailed market analysis using PESTEL factors. The report also applies Ansoff's Grid to explore market penetration, product development, and market development strategies. It identifies key competitors like Hershey's, Nestle, and Mars and concludes that brand extension is crucial for organizational success, emphasizing the importance of analyzing customer needs and preferences before launching a new product. The report includes references to relevant academic articles.

Brand Extension

Executive Summary
Brand extension is said to whilst a business enterprise makes use of one in every of
its mounted brands on a new product or product class. It is vital for a company due to
the fact it is able to useful by means of developing a multiplied degree of loyalty as
well as client perceptions of the emblem. Secondary studies or desk research is a
studies approach that entails the use of already current statistics.

Table of Contents
 Executive Summary
 Introduction
 Methodology
 Findings
 Target Market
 Analysis of Market
 Ansoff’s Grid
 Competition
 Conclusion

Introduction
Brand extension is said to when a company uses one of its established brands on a new
product or product category. It is important for a company because it can beneficial by
creating an increased level of loyalty as well as customer perceptions of the brand. The
presentation is based on the brand Cadbury, which is a British multinational
confectionary company. The company was founded in the year 1824 by John Cadbury
and is headquartered in Uxbridge, United Kingdom. It has decided to extend its brand by
launching soaps for the customers.

Methodology
The respective research was carried out with the help of secondary research wherein the
data was collected was collected from different books, online websites, journals etc. Cadbury
is one of the leading brands that has a large base of customers. The company has operations
across the world in different geographic locations. Secondary research or desk research is a
studies approach that entails the usage of already existing records. Existing facts is
summarized and collated to boom the overall effectiveness of research. Secondary research
consists of research material posted in research reports and similar documents.

Findings
Existing Brand and Brand Values
Kapferer’s Brand Identity Prism, one of the models of branding, which can be used to
explain the brand extension of Cadbury.
 Physique – this element describes the physical characteristics of the new product or
service. For example, when the customers will think of the new soap launched by Cadbury,
some ideas that will come to mind are transparency, fragrance of the soap and its color.
 Personality – This element repr
esents the traits of the product in the eyes of the customers. For example, Cadbury will use
its specific brand logo in order to communicate its message to the customers.

Cont…
Culture – As per the viewpoint of Kapferer, culture can be referred to as a set of
values that set a foundation for a brand in the market. For example, Cadbury’s logo
symbolizes wealth and makes the customers feel a part of the company.
 Self-Image – Self-picture relates to the manner wherein clients see themselves
in a selected emblem. Brands can use self-photograph to their gain with the aid of
incorporating it into their identities.
 Reflection – While the phrases sound comparable, Self-photo and Reflection
differ in a noteworthy manner: Self-image refers to the clients’ thoughts of themselves,
while Reflection refers to how a brand portrays its target market.

Cont…
 Relationship - The very last element of Kapferer’s Brand Identity Prism is
about the nature of the relationship among the logo and its purchasers,
including both summary components of the relationship in addition to more
tangible factors, like what unique services are offered.

Target Market
The target market of the new soap will be young adults, particularly females in the
United Kingdom and different marketing strategies will be implemented. This will
help in attracting a greater number of customers and gain their trust. The target
market will be segmented demographically as this will help in reaching out to the
customers effectively.

Analysis of Market
PESTEL Analysis
 Political Factors – The United Kingdom is a politically stable country with
a proactive government. But Brexit has caused various uncertainties.
 Economic Factors – There are various economic factors that can affect the
respective company and this can include GDP, Foreign Direct Investment etc.
 Social Factors – The company should take into account various social
factors before introducing the product in the market. this can include age, income
levels, gender, religion etc.

Cont…
Technological Factors – The UK is one of the most technologically superior international
locations in the global. London is the excellent hub for each financial and technological
establishment. Businesses are regularly growing new technologies to provide the first-class
solutions for their customers.
 Environmental Factors – The authorities, nearby councils, newspapers, charities and lots
of others have taken a diffusion of projects to create environmental attention and reduce the bad
effect of monetary boom on the surroundings.
 Legal Factors - The remaining detail to observe inside the PESTEL analysis of the UK is
the felony panorama. However, a detailed dialogue on the criminal surroundings of the USA is
past the scope of this text.

Ansoff’s Grid
Market Penetration – In a marketplace penetration method, the firm makes use of its
products in the existing market. In other words, a firm is aiming to growth its market
proportion with a market penetration strategy.
 Product Development – In a product improvement approach, the firm
develops a brand-new product to cater to the present marketplace. The circulate
generally includes huge studies and improvement and expansion of the business
enterprise’s product variety.
 Market Development – The respective company, Cadbury will adopt this
strategy and introduce new product into the existing market.