Brand Management Report: Cadbury, Optimum Impression Ltd Analysis

This report delves into the intricacies of brand management, focusing on Optimum Impression Ltd., an advertising agency, and its work with Cadbury. The introduction highlights the significance of brand management in adapting to the external environment and its impact on consumer base and revenue. The report then explores Cadbury's brand equity using Keller's Customer-Based Brand Equity (CBBE) model, analyzing aspects like salience, performance, imagery, judgment, feelings, and resonance. It also covers Cadbury's brand portfolio management strategies, including house of brands, endorsed branding, and mixed brand strategies, along with brand hierarchy. The report further evaluates collaborative brand management and various techniques for managing and measuring brand value. The analysis covers the importance of branding as a key marketing tool, emphasizing its role in differentiating products, building customer loyalty, and enhancing brand value. The report discusses the evolution of Cadbury's product range and its responses to crises, such as the worm incident, underscoring the importance of brand resilience and customer trust.

Brand Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 (Covers P1, P2)..................................................................................................................1
TASK 2............................................................................................................................................4
P3 Different strategies of portfolio management, brand hierarchy and brand equity
management................................................................................................................................4
TASK 3............................................................................................................................................7
P4 Evaluation of collaborative management of brands in partnership at national and
international level........................................................................................................................7
TASK 4..........................................................................................................................................10
P5 Various techniques of managing and measuring brand value.............................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Brand management is the process through which planning related to market a brand in
industry. This is the term which is important and relevant for making changes according to
external environment. This is the asset which is intangible in nature and has effect on accounting
status of association. With managing brand it is easy to increase base of consumers and sales,
revenues gets polished (Abrahams, 2016). There are many changes which are taking place in
external environment of business, hence to make good brand image, it is important to make
changes which are relevant and significant for creating and managing business in long run. This
report is based on Optimum Impression Ltd. This is an advertising agency who are thinking to
make an article for new marketing brochure. There is discussion about brand portfolio and
hierarchy management, strengths of the brand, weakness which requires different suggestions,
collaborative agreements and at last it discusses about evaluation of different techniques for
managing and measuring brand.
TASK 1 (Covers P1, P2)
BRAND IS POWER
Introduction
The use of unique designs, signs, symbols, or a combination of these, employed in
creating a different image of the product from that of competitors is what Brand means. Brand
Equity refers to the commercial value that is derived from the perception of the brand name of a
product, not from the product. Marketing Department plays an important role in creating the
Brand Equity, it can be done by communicating to people by conducting various Marketing
Programs and Social Marketing which may relate to the product, price and its distribution
channels.
There are several components which helps in making and managing the Brand Equity of
a product such as selection of audience or market to whom your product will target, giving clear
message to the target audience that product is promising, checking the brand perception from
the customers, educating customers about the power of your brand, and finally the brand gains
loyalty from the customers (Annie Jin, 2012). The company maintains the loyalty of the
customers by thanking them, or by giving them special discounts and gifts due to their loyalty
of the product.
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Main Body
Optimum Impression Ltd. is an advertising agency which helps brands to promote and
market heir product and services with different measures. This helps them to enhance consumer
base and increase brand value in industry. Optimal Impression Limited promote brand of
Cadbury which is discussed in this article. For understanding the importance of Brand Equity of
Cadbury, there use of Keller's Customer Based-Brand Equity Model is done. In this model,
building the Brand Equity is shown with the help of a Pyramid and which is done by
understanding the needs, requirements and implementing strategies accordingly. Cadbury has
good consumer base but it is not possible within few years, it took long time of targeting and
then branding of the product that have been able to create solid brand equity. The Model shows
six key levels that helped Cadbury in creating its Brand Equity. These are as under:
(Source: CBBE Model, 2018)
1. Salience: Cadbury enjoys a very high brand salience on the whole. It enjoys high recall
on the time when it comes to recall or recognition of brand instantly linking with the
purple colour trademark. Some strong associations include “purple”, “milky”. This
feature strengthen the brand equity of Cadbury.2. Performance: Despite its minor issues facing with the packaging of the chocolate,
Cadbury has changed its strategies and remove all such problems. That's why now its
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Illustration 1: CBBE Model

rates are very high in brand performance category. The change in the strategy made
Cadbury's brand equity strong.3. Imagery: The brand image is simply an impression or an image of the brand developed
over a period of time in consumer's mindset. Despite packaging, it kept many other
attributes unchanged as a sign of solid brand that maintains many key values, along with
the fact that the product must be easily identifiable by people of all ages. The chocolates
of Cadbury are placed near the checkout counters so that the consumers can make
unplanned purchases (Asmussen and et. al., 2013).4. Judgement: Cadbury had high brand and product quality. Customers feel secure to buy
the product not only for themselves but also for their family. In early 2007, Cadbury
announced a large number of recalls due to labelling error. The chocolate were produced
in a factory handling nuts and potential allergens but this was not made clear on the
packaging. As a precaution all items were recalled. So the recalling incident makes
ensure the customer that the brand will make sure of the quality of the product and this
also helped in enhancing the brand equity of the company.5. Feelings: Cadbury not only involves an individual but also others such as family
members, friends, relatives, etc. It is not consumed just to satisfy individual
requirements but also it is purchased to gift someone and for celebrations also. So
Cadbury connects to the feelings and emotions of customers such as happiness and
excitement that makes its brand equity strong.6. Resonance: Cadbury having a very loyal customer group including from childrens to the
senior citizens. In some countries it is also thought as a substitute of sweet dish. So this
is also a quality that makes Cadbury unique and strengthens its brand equity.
Cadbury extended the range of its products as the image of its brand started to develop.
The company extended it from the Bournville to Bubbly Caramel, Caramel Chunks Bag,
Chunks Bag & Nut Chunks Pouch (Balmer, 2012). As talking about 2016 Cadbury World
pricing is split into peak (classed as school holidays) for Group parties (special Group packages
are offered including a Memory Lane Tour, Choc & Steam, and meal deals –designed to meet
the different needs of different Groups) and off-peak prices. This was made possible only with
the help of its years of working on the targeted market and its innovation in its products, the
quality that it is providing in its products also helped in the wide expansion of its product range
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and also the acceptance given by the customers.
In 2003, Cadbury found itself in the eye of storm, when a few instances of worms in its
Dairy Milk Bar were reported. This incident put the company into crisis. And the trust of
customers on Cadbury started to decline. This was a very serious issue as the political overtones
were also saying Cadbury as an irresponsible MNC. The company overcome from this crisis in
several ways. First, it organise a PR campaign in less than two weeks. And also told that the
infestation cannot happen at manufacturing stage but occurred on the retail stage. And then the
packaging done was poly-flow packaging. Also the company launched a project which educated
many retailers about how to keep safe the product which helped the company in overcoming
these crisis.
Conclusion
Branding is relates to all of the ways by which the image of a company is established in
consumer's eye. Branding is an integral part of Marketing. Branding helps in clearly delivering
the message to the customers. If the product sets fit in the mind of the customer than it also
motivates him to buy the product. It also helps in creating user loyalty towards the product. Due
to these points, Branding is an important Marketing tool (Braun, Kavaratzis and Zenker, 2013).
Despite of a memorable logo, a good branding increases the value of a company,
provides employees with the direction and motivation, helps in making and acquiring new
customers easier, and also helps in making the goodwill of a company in the market. That's the
reason why Branding emerged in the business practise. The importance of branding does not
emerged in some days, the need of branding was known to the entrepreneurs when they look out
on others who are getting benefit out of it. Understanding the importance of branding was a
slow process but as the passing of time, the corporates were clear with the purpose and
importance of branding. It was because branding makes customer easily differentiate between
other products, easily introduce the new products in the market, increases loyalty of the
customers towards the product. These are the reasons due to which the Branding emerged in
business (Buil, De Chernatony and Martinez, 2013).
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TASK 2
P3 Different strategies of portfolio management, brand hierarchy and brand equity management
PORTFOLIO MANAGEMENT
Brand portfolio means making strategies through which managers of company control
brand image. This is relevant to make long term relations with consumers and attain long term
sustainability in industry. With the size of business, brand image of association gets improved.
Nestle has good brand image in industry because it deals in different confectionery items
according to demand of consumers (Dessart, Veloutsou, and Morgan-Thomas, 2015). To make
brand successful, there are some brand portfolio which are accepted by managers of Nestle. They
are discussed as under-
House of brands- There are many products which are offered by Nestle such as Aero,
Animal Bar, Crunch, Milky-bar, etc. hence as per this portfolio, there are different marketing
strategies for every product. This makes product more famous than company name. At packages
of different products of Nestle its name appears. This strategy is relevant because of its
differential prices, quality, targeted consumers.
Endorsed branding- As per this model, there is use of some association's name to make
product relevant in market. For instance: Nestle deals in coffee segment, it after entering in
chocolate sector, managers prefer to join its marketing with its coffee. This is relevant for
providing satisfaction to consumers and they are ready to avail it.
Mixed Brand strategy- This is the strategy which is combination of all the strategy. This
strategy is used as per requirement and there are possibilities of implementation of branding with
combination. This strategy is based on ad- hoc policies of branding choice.
Branding of product and services can be done in the form of two way which includes
making changes according to different width of brand (Dinnie, 2015). This is crucial and relevant
for maintaining proper changes which are making alterations according to external business
association. Brand image of Nestle can be extended in two forms-
Breadth extension- In this type of extension, there is enhancement in range of product
and services. For instance in case of Nestle deals in coffee initially but afterwards it deals in
chocolates also. This is breadth extension.
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Depth extension- In depth extension there is launching of similar type of product but
with new characteristic of product. For instance: Nestle deals in varieties of chocolates such as
Aero, Alpo, Hot Pocket, Gourmet, etc.
BRAND HIERARCHY
Brand hierarchy means pictorial description about branding of different product and
services. This helps to make differentiation in products and services of association. It is easy for
consumers to understand what products are launched by Nestle and hence it is easy to analyse
and identify products. Brand hierarchy of Nestle is discussed as under-
Corporate brand- As per this brand hierarchy, for consumer, there is difference in
products on the basis of their name. All the chocolates such as Aero, Milkybar, etc. are known
under the name of one brand name i.e. Nestle.
Family Brand- Family brand means that consumers are aware about name of product but
they does not have knowledge about its parent company (Elliott and et. al., 2015). For instance:
Maggie Soups, Ketch-ups are known under the name of Maggie but many customers are not
aware about its origin association i.e. Nestle this is part of parent brand. These types of products
are very less for associations.
Individual brand- As per this model, there are some unique and special value of products
though there are varieties of such products available under similar brand. In case of Nestle, there
is one famous product Maggie, this has perception in mind of consumer related to Maggie 2
minutes noodle. Though there are soups, ketch- up, Aata noodle, etc. with individual branding, it
is easy to customise product and with marketing polices, it is easy to aware customer on the
basis of logo, name of product.
Modifier- There is difference in demand of consumers, so in order to provide them,
satisfaction, it is important to take strategies and provide products according to demand. In case
of Nestle, they are dealing in Yogurt, as per demand of consumer managers are thinking to
launch custard as well.
Product descriptor- As per this model, there is difference in ingredients of product. This
helps to provide description about different product and able to provide relevant and as per
requirement of consumer (Heding, Knudtzen and Bjerre, 2015). This also helps to compete with
other competitors and increases faith of consumers over Nestle. In case of Atta Noodle of Nestle,
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there is description about use of nutritious value in terms of protein, vitamins, calcium, etc. so
health conscious people can prefer it.
MANAGING BRAND EQUITY
There is use of different strategies which are important and relevant for maintaining same
brand image in industry. There are some changes which has to be made to be competent in
market. These days there are many changes which are adapted by competitive associations, so it
is essential and relevant for making changes accordingly. There are many competitors of Nestle
such as Cad- bury, Mars, etc. hence there is requirement of managing brand equity in industry
and maintain long term existence in industry. With maintaining brand equity in industry, there is
value addition in product of Nestle. Some strategies for managing brand equity are as under-
Continuous differentiation- This is the one of the best way to rate good brand image in
industry (Hutter and et. al., 2013). These days, consumers prefer to have latest and relevant
product, so with regular improvement it becomes easy to satisfy consumers and maintain long
term relations with them. For instance: in case of Nestle, there are varieties of coffee with new
and advanced feature. This is relevant and significant for providing satisfaction to consumers and
hence brand equity can be maintained.
Building brand awareness- Brand awareness is one of the important component which is
essential and crucial for making changes according to external environment. Nestle launch many
new products hence it is important to create awareness about them, so it gives positive impact in
sales and revenues. When people are aware about brand and its product, then, possibilities are
bright that they prefer to avail services from it. Managers of Nestle use different social media
tools to create awareness about product and services such as Facebook, You Tube, Instagram,
etc. Hence it is easy to convey information and take feedbacks and review related to product and
services.
Provide best quality product and services- These days there is competition in
confectionery sector, so it is important and relevant for Nestle to maintain quality of product and
services. These days, consumers are more quality conscious, so they want full return of their
money invested. This also assist in maintaining brand equity and achieve long run assistance in
industry (Jugenheimer, Sheehan and Kelley, 2015).
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TASK 3
P4 Evaluation of collaborative management of brands in partnership at national and international
level
BRAND LEVERAGE
Brand leveraging means actions which are taken by managers of association to enter in
new and they will succeed because of their brand image. This is relevant and significant for
expansion making long term existence in industry. Brand leverage helps to provide satisfaction
to consumers and because of good brand image, it is easy to make sales and market the product
under brand image of Nestle.
For instance: in case of Nestle, while launching ketch up, managers prefer to use Maggie
soups, Ketch- up (Kapferer, 2012). This is part of brand leveraging. This is because Maggie
already has good brand image in industry and this increase faith and belief of consumers in
product which ultimately affects sales and profits of Nestle.
Brand leverage gives positive impact on sales and profits of Nestle which provides
satisfaction to consumers. There are many consumer which are brand conscious, hence with
brand leverage faith and loyalty of consumers gets improved. There are two ways through which
brand leverage can be done:
Line extension Brand extension
Line extension means launching new products
of same kind. For instance: in case of Nestle
there are different kind of Noodle, this is the
part of line extension (Mosley, 2014).
Brand extension means launching of new
product which is not related to existing
product and services. This is one of the
important concept because this helps in
expansion of business organisation. In case of
Nestle, there are different types of product
such as Coffee powder, chocolates, Water
bottles, etc.
There are different types of product which
provides satisfaction to consumers in the form
of varieties of product with different features
of existing and same product.
Brand extension is the best way to expand
business by increasing consumer. This assist
in maintaining long run existence in industry
and compete with brands.
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Line extension is less risky as compared to
brand extension. This is because product is
existing but with new and special features
which makes products different and satisfies
demand of society.
There are more possibilities of failure of
product because brand extension is risky
approach as in this case diversified products
are launched in market (Qian, 2014).
STRENGTH OF LEVERAGED BRAND
There are some strengths of leveraged brand for Nestle. They are discussed as under-
 Leveraged brand i.e. Nestle can launch new product in market with established brand
image. As brand image of Nestle is good and established, so it is easy for Nestle to
expand in market. For leveraged brand, diversification can be done easily because of
established brand image. This ultimately helps in increasing sales and consumer base.
 Marketing of new product is done with brand name and tag-line of established brand.
Managers of leveraged brand does not have to give emphasise on increasing brand image
because of existing brand image.
WEAKNESS WITH SUGGETIONS TO IMPROVE THEM
Apart from strengths, there are some disadvantages of leveraged brand. They are
discussed as under-
 There are some expectations of consumers because of established brand of Nestle , so it
might be tough that Nestle can not provide product up to the mark, so this affects
business operations in negative manner (Rageh Ismail and Spinelli, 2012). With failure of
product, there are possibilities of negative brand image.
 Price of new product is more as expectation of consumers because managers of Nestle
have main aim of achieving good profits and sales, so individual do not prefer to
purchase product.
 Due to more innovation under one brand may affect sales of old product. Hence base
product gets diluted because of new and innovative ideas.
In order to deal with such weakness, there are some suggestions which must be followed
by managers of Nestle. They are as under-
 Market research must be done in effective and relevant manner. There is requirement of
some cost for launching new product hence with market research it is easy to understand
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consumer demand, so accordingly product can be commercialise in society. This helps to
provide product according to external market.
 Price of new product must be low and in reach of every consumer. Managers must launch
small packs of new product as trial, consumers prefer to tries it (Santos-Vijande and et.
al., 2013).
 While in innovating new products, it is suggested to advertise base product with new
product. This helps to maintain brand value of existing and old product which is relevant
for maintaining brand image in industry.
COLLABORATIVE AND PARTNERSHIP AGREEMENT
Collaborative agreements are the way in which two or more people agreed on some
common objective. This is the way through which resources, knowledge, skills gets enhanced
and this is beneficial for making providing best services. These days big organisations
collaborate with other firms for the purpose of outsources. This helps to improve quality of
products of Nestle in the form of good quality products. Nestle can collaborate with other firms
for raw material which helps to give best quality services and hence it is easy to sustain in
industry. At domestic level, if one brand does not have good financial condition, then it must
collaborate with related company. This helps in combination of resources and association is able
to sustain in industry for longer time. While at international level, there is difference in taste,
preference of consumer as per difference in geographical region, so with collaboration agreement
with existing brand cost of marketing, publicity can be managed easily.
Partnership agreement means agreement between two or more people for running same
activities for achieving similar aims and objectives. In partnership, there is division of cost,
expense, profit under some pre determined ratio (Solomon and et. al., 2014). In case of Nestle,
this association has operations and product under different nations, hence they are in partnership
with local people for the purpose of factory space, retailers with some specific commission.
Partnership agreement can be managed at national level among two brands with proper
agreement regarding sharing of profits, loss, etc. There must be agreement related to capital
sharing ratio and asset management. At international level, if two brands works in partnership,
then they can be managed and work smoothly by understanding rules and regulations of country
where business is operating.
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TASK 4
P5 Various techniques of managing and measuring brand value
Brand value- Brand value refers reputation of an organisation. This is the non-tangible
asset which is important and relevant for making changes according to external environment.
Brand value stands for the existing market value of ZARA. This has positive as well as negative
impact on books of accounts. With good brand value, there is increment in sales and profits. This
provides satisfaction to consumers, this can be done with analysing regular changes which are
taking in external environment and managers of ZARA admire them (Yannopoulou, Moufahim
and Bian, 2013).
In case of ZARA, product are expensive and for niche market, so they charge some
amount of their goodwill. People prefer to buy products from this brand because of qualitative
clothes and good brand image and availing product from ZARA is status symbol for consumers.
Brand awareness- Brand awareness refers to knowledge to people about brand. This is
one of the essential aspect to make good brand image in industry. This can be done with
providing best quality services, continuous improvement in product and services, use of latest
marketing strategies, etc. When society is aware about brand image of ZARA, then they prefer to
avail services. ZARA targets niche and high class people, so they user less advertising and
marketing strategies. ZARA operates in different parts of countries, there is difference in demand
of consumers, so it is important to consider these changes which helps to increase consumer
satisfaction and globalise image can be maintained. Marketing is the best way to increase brand
awareness about ZARA. This can be done with the help of advertisement, online advertisement,
etc.
Market share- Market share means ratio of total sales of brand with total sales of
environment. If market share is high, then there is good sales and profits. With large market
share, expansion of brand is also relevant. Market share of ZARA can improved or enhanced
with analysing demand of consumers and provide satisfactory quality. With good market share, it
is easy for managers of ZARA to expand business. There are many competitors of ZARA such
as Marks and Spencer, H&M, etc. so it is essential for managers of ZARA to plan new and
innovative approaches for satisfaction of consumers. Hence with satisfaction of consumers, sales
gets improved.
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Consumer attitude- Consumers are the asset for growth of ZARA because this helps to
enhance sales and profits. Consumer attitude refers to behaviour of consumer whether positive or
negative in respect to any brand. Attitude of consumers are based on quality of product and
services (Zenker and Beckmann, 2013). For instance: as ZARA deals in clothing sector, so it is
important and significant to provide best quality clothes. As these days, consumer wants full
value of their money. Hence if after charging premium pricing strategies, if ZARA is not
delivering up to the mark, then consumers attitude is bad. But as quality is clothes of ZARA is
premium, so attitude of consumers are positive. This is beneficial for creating good brand image
in industry.
Purchasing intent- Purchasing intent refers to probability of individual, that they
purchase product from ZARA or not. This thing depends on two variables that is cost and quality
of product. Apart from this marketing campaign of ZARA also affects purchasing intent of
individual. In case of ZARA, there are less advertisement because they target niche market,
hence they use to provide advertisement in business magazine to target corporate and high class
people. Feedback related to quality of cloth, services, etc. must be taken to known perception of
consumers. In case of negative comment corrective measures must be taken after taking
corrective measures revert to consumer. This increase brand loyalty and they prefer to avail
services from it on continuous basis.
CONCLUSION
From the above discussion it is clear that to make long run in industry branding is
important aspect. CBBE Model is used by firm for strengthen brand value and brand extension.
There are different strategies for maintaining brand portfolio such as Endorsed branding in which
assistance of other brand is used for promoting product and services. Brand equity can be
improved with the help of continuous differentiation, provide best quality product and services
by organisations. Brand leverage is the way through which new product can be launched under
the established brand image.
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Brand portfolio strategy and brand architecture. 2018. [Online]. Available through:
<https://www.tandfonline.com/doi/full/10.1080/23311975.2018.1483465>.
15 tips on Managing Brand Equity. 2018. [Online]. Available through:
<https://www.marketing91.com/15-tips-managing-brand-equity/>.
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