Cadbury Brand Extension: Target Market, Values, and Growth Strategy

This report analyzes Cadbury's brand extension strategy, focusing on the introduction of organic chocolates. It identifies the brand's current values, including its strong brand loyalty, wide distribution network, and beneficial dealer partnerships. The report explores the potential target market ...Read More

Brand extensions

Table of Contents
INTRODUCTION .............................................................................................................................3
Current values of the brand being extended .................................................................................3
Potential target market of the brand extension .............................................................................4
CONCLUSION ................................................................................................................................5
REFERENCES...................................................................................................................................7

INTRODUCTION
Marketing is a dynamic process that encompass all activities that an organisation undertake
in order to promote and sell its products and services in the market. Its main goals is to enhance
sales by building a loyal customer base. In marketing, brand extension is that practise which is
used by the companies to increase its market share for the given products and services. The brand
chosen in this report is Cadbury that offer various products such as biscuits, Bournvita Dairy milk
shotes, Bikul, Oreo, chocolates and other etc. The main aim of this report is to identifies the
current values of brand product and potential target market of this product (Faisal, 2020).
Current values of the brand being extended
Cadbury is the second biggest confectionery brand after the Mars. Cadbury in the world.
This company is known for the milk chocolates, rose selection box, crème egg and other
confectionery products. It is a famous brand and renowned for high quality products with a
reasonable price. It regularly updates their product's packing with new wrappers in different size
or colours (Knoche and et. al., 2020).
Importance of Cadbury's brand
 It is considered a having best production and large distribution platform with its presence
in more than 160 countries.
 It's products are endowed with a grate brand loyalty as it has various strong brands
including Bournvita, milk chocolates, Oreo and many others.
 Cadbury has a beneficial partnership with its dealers as they not only supplies them but
also helps them to promote their products as well as training of the company.
 It has a wide product portfolio where it sells their products in a several verity of categories.
It also has a wide range of the exclusive product deals that rivals do not have.
Now it is going to extend its brand as it is about to introduce the Cadbury organic chocolates. It
will contain high nutrition and make up only on third of total fat calories. It will be loaded with the
organic compounds which are biologically active or function as an antioxidants by including
flavanols, polyphenols, catechins and many others. The components of this organic chocolates
appear to a very highly protective against an oxidation of LDL. The main purpose to introduce this

new product is to create a model, identifies how the different variables impact brand loyalty and
also understanding the importance of the culture in branding.
Existing brand values, campaign and sponsorship of the company
Cadbury has launched many market campaign for thier chocolates . One of them is the
Real Taste of life campaign. It ha a very well functioning and an engaging websites which attract
more traffic and the sales on internet. They run its competition through the Twitter to win their
products over other brands. They also sponsored many events such as global youth festival,
Windmill festival, Enthusia and other etc (MahilaVasanthiThangam, 2020).
Growth strategy of the brand
The Ansoff Matrix contain four growth strategy such as market penetration, product
development, market development and diversification. Cadbury adopt its growth strategy as
product development, it is introducing a new product that is organic chocolates in the existing
market in order to increase their customer base and earn more revenue. By adopting this growth
strategy Cadbury will get a high market share and can compete with other competitors.
Potential target market of the brand extension
STP analysis contain three components which are given below:
 Segmentation- For the organic chocolates Cadbury segment their market on the basis of
behavioural as some peoples are like the chocolates but they avoid it because of high
sugar, so these organic chocolates are very beneficial for them.
 Target market- Cadbury target the families belonging to lower, upper and middle class as
its product are very affordable with many health benefits (Smith and Smith, 2020).
 Positioning- Cadbury positioning itself as a dominant player in the market because its new
product is very good for health purpose and provide a good quality.
PESTLE analysis
 Social factor- It include the buying pattern and behaviour of the customers. Cadbury
introduce this new product with the impact social component because the lifestyles of
individuals changing continuously so due to their changing behaviour the company launch
its new product that is organic chocolates.

 Environmental factor-It consider the health of an individual so, this element affect as
peoples are more health conscious about their health so with this impact this Cadbury bring
this organic products for these peoples who wants to remain fit and eat nutritions food
products (Pravdová and et. al., 2021).
Comparison with other competitors.
Cadbury Divine
Its price are very affordable and it I capable to
compete with it competitors with the changing
market environment.
In this, there is inability of price as it pay a fair
share of its revenue, it can be a serious problem
in changing market environment.
It focus moire than one promotional strategy
due to which it is a good bran that is known in
world wide
For its promotional strategy it focus only social
network due to which outside UK it is not as
widely known.
It available every shops, supermarkets and
other stores, so it is able to target a large
market area of customers.
It available only in supermarkets, so, it can target
only a limited number of customers.
CONCLUSION
Form the above report is is concluded that in marketing, the product development or brand
extension is a beneficial strategy for an organisation as it will helps the company to generate more
profit with high market share. To introduce a new product in market the values of an organisation
is very helpful because of their brand value and other facilities. For this the company has to
carefully analyse its target market and macro environmental factors in order to avoid any threat.
For this, the organisation should have a growth strategy that will help them to develop their
product or market for getting some benefits. So a proper market analysis is very essential for an
organisation in to run its business efficiently.

REFERENCES
Books and Journals
Faisal, M., 2020, November. We see you: Terrorist prediction framework through psychological
and social behaviors. In 2020 7th International Conference on Soft Computing &
Machine Intelligence (ISCMI) (pp. 204-212). IEEE.
Knoche, S. and et. al., 2020. Investigation of the acrolein oxidation on heteropolyacid catalysts by
transient response methods. Catalysis Science & Technology. 10(15). pp.5231-5244.
MahilaVasanthiThangam, R.B.M.D.D., 2020. Brand Management: Analysis of Cadbury. Journal
of Critical Reviews. 7(14). pp.4288-4295.
Pravdová, M. and et. al., 2021. Associations between pharmaceutical contaminants, parasite load
and health status in brown trout exposed to sewage effluent in a small stream.
Ecohydrology & Hydrobiology. 21(2). pp.233-243.
Smith, M. and Smith, C., 2020, December. Advanced Geochemical Analysis of Volatiles Present
in Drill Cuttings to Drive Decisions from Single Well Completions to Acreage/Basin
Assessments: Examples from the Permian, STACK, and SCOOP. In Unconventional
Resources Technology Conference, 20–22 July 2020 (pp. 3042-3061). Unconventional
Resources Technology Conference (URTEC).