MG412 Principles of Marketing: Cadbury Brand Extension Report Analysis

This report analyzes Cadbury's brand extension strategy, focusing on the introduction of a new vegan mix fruit ice cream. The report begins with an introduction to Cadbury, including its history and market presence. It then details the new product, its target market, and the growth strategy employed, which is diversification using the Ansoff Matrix. The target market is segmented demographically and behaviorally, with a focus on health-conscious consumers. A comparative analysis with competitors, such as Nestle, highlights the product's low-calorie content and unique packaging. The report also examines key trends influencing the brand extension, such as the rise of new product development and consumer preference for diverse flavors. A PESTLE analysis assesses the political, economic, and social factors impacting the extension. The report further discusses product differentiation, emphasizing the unique qualities of the mix fruit ice cream. The conclusion summarizes the importance of brand extension for increasing brand value and aligning with current market trends. The report utilizes references to support the analysis.

MG412 Principles of Marketing
CW2 Brand Extension Report

INTRODUCTION
• The present PPT will perform the brand
extension of a selected brand which is
Cadbury.
• The present PPT will describe the new
product of the firm, targeted market,
growth strategy and Key trends.

Background of the brand
• Cadbury is the multinational brand which was
established in the Birmingham, England in the year
1824.
• Currently the company has approached the
numerous parts of the world within increasing their
operations.
• Cadbury has captured more than 85% of the market
share in worldwide.

Noticeable promotional campaign

New product of the brand
• The new product of the Cadbury will be “Mix fruit ice-cream” which is
completely vegan.
• This leads to approach the new customers towards the
Cadbury as this concept is completely new by Cadbury.

Growth strategy for new product
• Growth strategy that has been adopted by Cadbury
is Diversification from the Ansoff Matrix.
• Diversification refers to that growth strategy in
which the new product has been developed and new
market along with the existing market has been
targeted.
• Thus, this is the effective growth strategy that is
being applied by the Cadbury.

Target market
• Demographic segmentation- In this segmentation
people of all age group will be approach as people of
all age group prefers ice-cream.
• Behavioural segmentation- Those people who are
health conscious will be approached in this
segmentation as the mix fruit ice-cream will contain
low calories.

Comparative analysation v competition
Cadbury mix fruit ice-cream Nestle mix fruit ice cream
 Cadbury mix fruit ice cream will be of
low calories
 Different packaging will be used which
include- bottles, cubes and rappers.
 Low prices will be offered to the
customers.
 Nestle mix fruit ice cream does not
provide assurance of low calories
 Nestle only uses the rappers packaging.
 High prices

Key trends
• Key trends that leads to influence the brand extension are rise of the new
product development in the ice-cream industry.
• Customers likes different flavours. Therefore, this is one of the major key
trend which needs to be followed by Cadbury within introducing mix fruit
ice-cream.

PESTLE Analysis
• Political factor- The rules and regulations of food and drug
administration system can lead to impact the brand extension. Therefore,
rules need to be maintained in proper manner.
• Economical factor- High labour cost can create negative influence.
Therefore, effective strategy is required in this context.
• Social factor- Changing in the taste and preference of the customer
creates negative impact.

Product differentiation
• Product differentiation involves the unique qualities
of product that makes products superior from the
competitor’s product.
• Mix fruit ice-cream will be different from the
competitor’s product as it will be consist of low
calories.
• Also, it will provide the delicious taste of different
fruits in the form of ice-cream.

Visual image of brand extension