A Brand Plan report for Cadbury - Essay Example

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A brand plan report for Cadbury AFFILIATION: Table of Contents Table of Contents 2 0Introduction to Cadbury 3 2.0Mission Statement of Cadbury 3 3.0Situation Review 3 3.1PEST Analysis 3 3.2Market Review (Market size and competitors) 4 3.3SWOT Analysis 4 4.0Brand Issues 5 4.1Elements 5 4.2Positioning 6 5.0Segmentation and Target Market 6 6.0Brand Objectives 6 6.1Corporate Objectives 6 6.2Marketing Objectives 6 6.3Brand Objectives 7 7.0Brand Marketing Strategies 7 8.0Budget 8 9.0Implementation and Control 8 Five year predictions of Cadbury’s Brand Plan 9 Appendix I – Brand Identity Page 10 Appendix II – Brand Map 13 Appendix III – Photos of Cadbury products 14 References 15 1.0 Introduction to Cadbury 3 2.0 Mission Statement of Cadbury 3 3.0 Situation Review 3 3.1 PEST Analysis 3 3.2 Market Review (Market size and competitors) 4 3.3 SWOT Analysis 4 4.0 Brand Issues 5 4.1 Elements 5 4.2 Positioning 6 5.0 Segmentation and Target Market 6 6.0 Brand Objectives 6 6.1 Corporate Objectives 6 6.2 Marketing Objectives 7 6.3 Brand Objectives 7 7.0 Brand Marketing Strategies 7 8.0 Budget 7 9.0 Implementation and Control 8 Appendix I – Brand Identity Page 9 Appendix II – Brand Map 12 Appendix III – Photos of Cadbury products 13 References 14 1.0 Introduction to Cadbury John Cadbury founded the company “Cadbury” in 1831 with the aim of fulfilling the people’s desire of having delicious and best quality chocolates at affordable prices (Cadbury, 2012). The company has been successful in its mission and has completely revolutionized the processing market of cocoa since 1866. In the year 1969, Cadbury merged with Schweppes and it was named as Cadbury Schweppes PLC. In February 2010, Kraft Foods took over the company and Cadbury PLC is now its subsidiary which is an international organization; it is commonly referred to as Cadbury in the market (Kraft Foods, 2011). Currently, it has its presence in more than sixty countries and has a workforce of more than fifty thousand people (Wallace, 2010). Strategically, the company has been positioned in the market as the leading supplier of chocolate and sugar confectionary worldwide. Since 1905, ‘Dairy Milk’ is the most successful product of the company that has given it a top ranking in the confectionary industry (Burns, 2008). In terms of revenue, Dairy Milk has grown to become a famous and highly accredited moulded chocolate bar in UK and worldwide. The basis foundation of the strategic success of Cadbury comprises of its three strong core pillars i.e. premium quality, value for money and sound advertising (Infor, 2010). 2.0 Mission Statement of Cadbury The mission statement of Cadbury is “to be the best and biggest confectionary company across the globe while delivering a superior shareholder return through an efficient process that fosters growth of the company and ensures complete capitalization of the company’s core capabilities.” (Shelley, 2009) 3.0 Situation Review 3.1 PEST Analysis Since the business environment is changing at a fast pace, it has become vital for every organisation to ensure that it monitors the happenings that are taking place in its surrounding so that it can manage its operations effectively and alter the business plans and strategies accordingly (Kepferer, 2005; Kotler & Keller, 2005). The PEST analysis of confectionary industry of UK is discussed below: 1. Political – There are various policies and legal requirements that Cadbury will have to comply with to ensure that it conducts its business operations within legal and ethical business operation boundaries such as Weight and Measures Act, Minimum Wages Act, Equal Employment Opportunity Act, Trade Description Act and many more. 2. Economic – An increase in per capita income means that the people will have more money to spend, even better penetration opportunities in developing countries that can increase the revenue amount and increase in demand is expected as there is an increase in the urban population. 3. Social – There is a growing trend of giving chocolates as gifts and it has become a popular fashion trend among the customers. Some people are becoming health conscious so they are looking for healthy and nutritious alternatives in the chocolates category. 4. Technological – As the technological advancements have increased, the production processes have become efficient, trade among the countries has becomes quicker, managing operations in multiple countries has become easier and the customers can be reached via various online mediums on Internet such as social networking sites. 3.2 Market Review (Market size and competitors) In UK, the confectionary market has grown to become a saturated market that is highly competitive and dynamic. Currently, there are many companies present in the market that are competing to acquire the market share; the top ranked companies in UK in the confectionary industry are Thorntons, Lindt, Nestle, Cadbury, Mars, Galaxy and many more (Wallace, 2010). The confectionary industry is highly impacted by stringent regulations on the content of advertising, development of supply chains that are environmental-friendly and growing concerns for the Fair Trade content (Shelley, 2009). In order to compete in the confectionary industry, the companies are trying to maintain their existing position by focusing on development of their brand equity which is defined as the “combination of four key elements i.e. brand image, brand presence, brand commitment and perceived quality that get accumulated in the form of long-term value in financial terms both for the organization and its stakeholders” (Heding, Knudtzen, & Bjerre, 2009). 3.3 SWOT Analysis SWOT analysis is vital for a company to provide details about its current position such as internal capabilities along with any problems that can be encountered so that timely action can be taken and it can move in the right direction (Keller & Lehman, 2005; Erdem & Swait, 2004). The SWOT Analysis of Cadbury is as follows: Strengths Cadbury has a strong brand name. The customer base is very wide and has strong presence in two sectors i.e. food drinks, chocolates and confectionaries. It has low cost production facilities that ensure efficient production of products. The management team has years of experience in the field. All promotional activities have consistent message so that the customers can relate to the purple colour of the brand. Weaknesses There have been too many changes in the management structure as the company has been acquired by multiple companies from time to time. Some complaints have been received about the advertising campaigns of the company as parents have concern about the ads used for targeting children. A lot of efforts are required for ensuring consistency in all the products offered in every country of its operations. The decision making process is time-consuming as the size of the company is large. Opportunities Cadbury can introduce new and innovative products as the company’s size has increased. The resources can be effectively utilized and synergies can be created to enter the market in the best possible manner. When different products are introduced with a single brand name, it is easier to enter the market and the customers will be attracted in an effective manner. Threats If the acquisition will not work, then it can damage the reputation of both companies. The confectionary industry is highly competitive which can attract new companies in the market or new products can be introduced by the existing companies. Since the industry is price sensitive, an increase in the price of product or decrease in consumer spending power can force the customers to switch to competing brands. 4.0 Brand Issues 1.0 2.0 3.0 4.0 1.0 2.0 3.0 4.0 4.1 Elements According to Aggarwal (2004), the key elements of a brand comprise of product, place, price and promotion. The analysis of Cadbury reveals following elements of the brand: 1. Product – The product range offered by Cadbury comprise of Dairy Milk, Eclairs, Perk, Gems, Break, Fruit & Nut, Nutties, Temptation, 5 star, Milk Treat, Cocoa, Drinking Chocolate and Bournvita (Cadbury Products, 2012; Singh, 2009). Each of the products has been designed for various customer segments so that everyone can enjoy the best chocolates that are easily accessible. 2. Price – In order to meet the demands of every customer, the price is of varying range so that everyone is able to find one product compatible within their price range. The pricing strategy followed by Cadbury is to match the value that the customer is willing to pay when the product is purchased so that the expectation level is met and the person can get value for money. The right price level is identified so that the customers are satisfied with their purchasing decision. The price range of the products is in between ?0.5-?5. 3. Place – The products of Cadbury are available everywhere so that every customer can access them with utmost ease. They are easily accessible from all leading supermarkets along with small stores as the company is targeting every customer present in the country can enjoy the sensation of such an amazing chocolate fantasy. 4. Promotion – In order to reach the target market effectively, the promotional activities should comprise of perfect blend of alternatives available so that the company can generate required amount of sales (Hemraj, 2002). Cadbury’s promotional strategy comprises of Television Advertisements, website presence for capturing the attention of online customers, promotional offers on seasonal basis and sponsoring of events so that customers are well-informed about the latest developments done by the company. 4.2 Positioning According to Anand and Shachar (2004) and Cadbury Marketing (2007), positioning is the idea that a company wants to communicate to its target audience; it is easier to communicate one message for a complete range of products rather than using multiple messages for all products. The brand positioning of Cadbury can be defined as “the premium quality milk chocolate for everyone (kids, adults and older people) who want to have the pleasurable sensation of chocolate and are willing to have superb and delicious taste of life.” The company will carry this positioning in future to ensure consistency in its brand image especially in the next five years. 5.0 Segmentation and Target Market The target market of Cadbury can be defined as people within the age bracket of 14 to 40 years who want to get indulged in a sensation superb chocolate; the brand is the best option for those people who are looking for ideal alternatives to enjoy the sensation of eating superb quality of chocolate. The company has segmented the market on the basis of life stages such as kids, students, young adults and families who are chocolate lovers and are looking for wide range of options. The prices of the products are set in accordance with the target market requirements so that they can have their favourite chocolates within their budget range. 6.0 Brand Objectives 1.0 2.0 3.0 4.0 5.0 6.0 6.1 Corporate Objectives In order to provide strategic direction to the company’s employees, corporate objectives are developed from the evaluation of corporate strategy so that the actions developed will be effective in meeting the organization’s well-set goals (Nail, Raman & Winer, 2005). The corporate objectives of Cadbury for the next five years are: 1. To enter into ten new emerging markets in the next five years. 2. To enhance the performance of the company by implementing latest machineries for production in China so that production cost is reduced with each passing year. By the end of 2017, the cost will be reduced by 10% from the current year. 6.2 Marketing Objectives The marketing objectives of the company will allow the company to ensure that marketing activities are monitored so that Cadbury is able to achieve the desired goals especially marketing objectives (deChetamony, 2006). The marketing objectives of Cadbury are as follows: 1. To generate increase in sales of chocolate products by 10% each year from the period of 2012-2017. 2. To increase the market share by 2% each year that is above the industry standards. 6.3 Brand Objectives The brand objectives of Cadbury are as follows: 1. To increase the awareness about the products by doing aggressive marketing on online mediums such as social networking sites and engaging customers in online promotional activities. 2. To enhance customer involvement via direct mail to increase the customer hit by 70,000 clicks on the company’s website and to make sure that the number increases by 5% each year in the next five years. 7.0 Brand Marketing Strategies In order to reach the target market, following traditional and online marketing strategies will be implemented by Cadbury: 1. The markets that will be entered in the next five years include China, South Africa, Hong Kong, Italy and Malaysia in years 2013, 2014, 2015, 2016 and 2017 respectively. In the first two months, products will be available in two cities; after the market adaptation, nationwide launch will be done. 2. In each of the year, marketing activities will be done in the form of advertisements which will be placed in top ranked newspapers and magazines and TVCs will be run on leading channels during prime time so that both the kids and adults can be reached effectively. 3. In the period of 2012-2017, educational events will be organized each year to create awareness about the educational options available for the students; it will be helpful in attracting kids and young adults as these events will help them in gathering information about their aspiring career paths. The events will be held for a week in summer vacations so that they can be organised in every country and all latest information about educational options will be provided to the students. 4. Cross promotion will be done via social networking websites such as Facebook, Twitter and LinkedIn along with tech carrier services such as Vonage and Skype. These efforts will help to attract the customers and reaching the customers will be easy. It is predicted that online sales will increase by 5%, 7%, 10%, 12% and 15% in 2013, 2014, 2015, 2016 and 2017 respectively. 5. A chocolate day will be organized with purple colour theme so that brand is endorsed in an effective manner; the event will ensure that the chocolate lovers can have best time of their lives. This event will be organised at the end of each year in the period of 2012-2017 i.e. in the last week of November. With the help of this event, a distinctive image will be created in the customer’s mind. 6. The company will introduce a range of healthy chocolates in year 2014 in USA, 2015 in UK, 2016 in Australia and 2017 in Singapore and India that will have all vital nutrients so that diet conscious customers can get indulged in the pleasure of chocolate without getting worried about gaining weight. The endorsement will be done by Lady Gaga and Tom Cruise. 8.0 Budget The marketing department of Cadbury has designed a budget after evaluation of the market needs and assessing the financial position of the company to ensure that the target market is reached in an effective manner. The total budget amount available for the promotional activities is ?2 million for each year in the period of 2012-2014 so that the team is able to develop a marketing plan that will ensure that right mediums are used to reach the target market. The budget amount available for expansion in years 2015, 2016 and 2017 are ?3 million, ?3.25 million and ?4 million respectively considering the increase in inflation rate worldwide. 9.0 Implementation and Control The marketing efforts of Cadbury will be reviewed monthly as the technological advancements take place on an ongoing basis and new products are introduced quickly as well. The initial source of evaluation for the company will be the difference in the estimated and actual sales of the product (Bruhn, Schoenmueller & Schafer, 2012). On the website, the customers will be allowed to give their feedback about the product features, and the existing customers will be asked to participate in the survey of the computers. However, some of the evaluation tools that will be used to measure the performance are as follows: 1. Keep track of the current and potential customers of Cadbury’s chocolates, confectionaries and other products. This can be done by tracking the traffic clicks and exposure to banner ads on the website from cross-linked and redirected links created for promotional purposes of Cadbury on media channels, websites, key browsers or key search engines (all targeted for the marketing tactics). 2. The evaluation of direct sales, surveys, and e-mails designed for products recently purchased will give a proper indication about the customer’s satisfaction level and how successful the product is in view of the customers (Boyle, 2007). 3. Carry out customer satisfaction surveys, gather information from customer reviews on various blogs, and review the customer feedback by selecting the users from Beta test market, both current and potential ones. In order to sustain in today’s environment in which changes are happening on a continuous basis, Cadbury management team will have to make sure that they provide the products in ways designed in accordance with customers’ needs and requirements. The strategy should be properly developed and reviewed on a monthly basis to ensure that the changes are being incorporated. As it continues to undertake the expansion strategy, it will have to make sure that it does not deviate from its original aim of satisfying the chocolate and confectionary desires of the customers. The disadvantages that can be encountered from the expansion are that it is unable to meet the demands of its target market and might have to alter the marketing campaigns for each market worldwide; it can lead to heavy amount of loss. In order to avoid such situation, Cadbury will have to implement proper mechanisms to ensure that it follows its mission appropriately and achieve all the desired objectives on time. Five year predictions of Cadbury’s Brand Plan In the next five years, it is predicted that the confectionary industry will grow at a much faster pace and the number of customers who consume chocolates will increase as well. Since the primary objective of Cadbury is to satisfy the chocolate temptation of every customer within his/her budget range, Cadbury has decided to offer economical sizes of large chocolate bars that will be priced in between ?0.2 to ?1 so that everyone can easily buy them. By the end of 2017, Cadbury is aiming to be present in every country around the world and switch its production facilities to China so that it can reduce its cost to a considerable extent. Considering the complete brand strategy developed by Cadbury, it is evident that it has defined its position appropriately for the next five years and it has a clear direction about the positioning that it wants to achieve in the market. In between the period of 2013-2015, it is predicting to successfully capture a distinctive position in the customers especially students by educating them about various career opportunities. Besides these plans, it will enter into the healthy chocolate market in 2014 so that it can satisfy the wants of a health-conscious consumer. Hence, Cadbury has set a well-defined vision and will ensure that all appropriate measures are in place to capture its target market and implement its brand plan effectively in the long-run. Appendix I – Brand Identity Page Design elements 1) Target consumer: Age – 14 to 40 years Lifestyle – Outgoing, adventurous, health conscious and willing to experiment with new things Income level – ?1,000-?10,000 Marital Status – Single/Divorced and Married Occupation – Employed (Part-time or full-time) in an organization, teacher, volunteer and student Usage Frequency – Once in two days 2) Target consumer insights: Beliefs and values – Enjoy the pleasure of chocolate indulgence but ensuring that calorie intake does not cross the daily intake requirement. Needs and desires – Looking for the best alternative for light snack that is sweet, healthy and nutritious Concerns, fears and anxieties – All ingredients used are of top quality so that there are no harmful ingredients in the product that can affect the health of consumers. The product will be tested on humans, there is no animal testing done so that business ethics are properly followed. 3) Brand essence/mantra: The top quality chocolate that is the ideal option for celebrating every sort of happiness at the best and affordable price 4) Frame of reference: The broad frame of reference is confectionary industry. The narrow frame of reference is healthy option for weight conscious people. 5) Relevant differentiated benefit (USP or ESP): The primary benefit is getting indulged in the sensation of chocolate for enjoying the happy moments. The core competency of organization is a wide range of the best quality chocolate products that are within the budget range and each product gives value for money. Brand Knowledge 6) Brand Promise: Cadbury has created a distinctive image in the market by offering a wide range of products that are targeted for each customer so that everyone can have best chocolate filled sensation of their lives. All the products are developed after careful analysis of the market so that the target customer’s needs are addressed and the complete marketing mix is designed in a way that will help the company to meet the changing demands of the customers. The brand “Cadbury” promises to provide superior quality confectionaries so that it can provide maximum value to the stakeholders by doing expansion in a strategic way. Cadbury is delivering excellent quality confectionaries to every kid, young adult and young family. 7) Brand Personality: Reliable Friendly Indulgent Fun-loving Confident Exceptional Affordable Natural Down-to-earth Energetic/Sparky Liveliness/Rebellious Playful/ vivacious 8) Brand Voice: In order to convey the message in friendly and practical way, the brand voice is created in a down-to-earth and lively tone. The music used is soft and smooth so that it complements the brand image that the company wants to create in the mind of the target market. Brand Elements 9) Brand logo: 10) Brand colours: Purple and white Purple is the dominating colour and it is highlighted in every promotional activity so that it resonates with the image that can be created in the customer’s minds. In almost all the advertising campaigns, purple themed marketing activities are designed so that the image of royalty can be embedded. In majority of the countries, the purple colour symbolizes royalty and indulging Cadbury chocolate will ensure that the person is enjoying the sensation of royalty. 11) Brand visual style: The visual style is appealing; the colour tone is kept at a softer level so that the right message is created. In order to create a good visual style, the animated videos and posters are used so that the kids can be attracted. From time to time, the company uses cartoon characters that are famous in one particular in time so that consumers are induced into trying the product. 12) Slogan: The two best slogans that can be used on alternate basis are “Real Time Indulgence” and “Cadbury is mandatory for sharing happy moments”. 13) Brand mnemonic device: There will be no change in the sound track of Cadbury’s advertisement as the current track is ideal for getting the attention of customers. 14) Brand identifiers: The brand identifiers for Cadbury are the celebrities such as Tom Cruise, Lady Gaga and Lindsay Lohan and cartoon characters such as Dora, Jerry and Mickey Mouse. Appendix II – Brand Map Appendix III – Photos of Cadbury products References Aggarwal, P., 2004. The effects of brand relationship norms on consumer attitudes and behaviour. Journal of Consumer Research, 31(June), pp. 87-101. Anand, B. N. and Shachar, R., 2004. Brands as beacons: A new source of loyalty to multiproduct firms. 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