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Business 2000
EIGHTH edition
Developing brand identity
Brand Development - Building
the Dairy Milk Megabrand
A brand identity is the message sent out by the brand through its name,
product shape and design, visual symbols (such as logos), advertising etc.
This identity needs to be planned by brand management, as this is key to
gaining market acceptance and leadership.
The Brand Pyramid - Brand Meaning
◗
◗
transfer to all sub-brands. The risk however, is that if one brand is
unsuccessful or falls into disrepute, the reputation of the complete
family of brands can be tarnished. Cadbury is a family brand.
Individual brand names (or multibrands): In this case each
brand is created and named separately and has a separate identity.
Using a family brand may not be suitable as the brand values may be
too far apart.
Combination brand names: This approach allows for the optimal
use of the corporate (family) brand name, while allowing an individual
brand to be identified, e.g. Cadbury Dairy Milk.
brand core
brand proposition
introduction
The Cadbury Family Range
brand style
Since setting up in Ireland more than 70 years ago, Cadbury has become the undisputed market
leader in the chocolate market with a 48% share of a market worth €473 million annually.
The Dairy Milk brand alone accounts for approximately 33% of Cadbury’s total chocolate
Cadbury Ireland is a subsidiary of
blocks (moulded) and bars sales, making it the number one confectionery brand in the
Cadbury-Schweppes plc, a global leader in
market. The continued success of the Dairy Milk brand is testament to the quality
the manufacture of beverages and confectionery
of its brand management. This study will examine the nature of a brand and the
products. Cadbury Ireland was set up in 1932, producing
critical role of managing a brand concept.The latest strategic development of the
just three products, including Cadbury Dairy Milk. Today,
Dairy Milk brand will then be reviewed: The Building of the Dairy Milk
Cadbury Ireland has three production plants, in Coolock and Dun
Megabrand!
Laoghaire in Dublin and Rathmore, Co. Kerry. All have become
Cadbury - Unique taste to suit Irish tastes
centres of excellence for the manufacture of confectionery products.
More than 200 products are exported from Ireland to 30 countries
around the world, making a contribution of €110 million to Irish
trade. Cadbury Ireland uses local ingredients and is one of the
largest users of indigenous Irish materials. Using local
produce is a major factor in creating the legendary
Best Quality
Cocoa Beans
Fresh Irish Milk and Sugar
Cadbury
‘Know How’
taste of Cadbury Ireland’s products.
Creamy, Distinctive and Tastes Like More
What is a brand?
A brand is "a name, sign, symbol or design, or a combination of these, intended to identify the goods or services of one seller and to
distinguish them from those of competitors". Branding helps differentiate products and can be a powerful tool of competitive strategy.While
products can come and go over time, brands (if properly managed) can live indefinitely. Brands have many benefits for companies and
consumers. For companies; strong brands add value, and consumers develop positive associations with the brand and are less likely to
purchase competitors’ products. This means the brand can act as a barrier to competition. For consumers, brands help them to quickly
identify products and make shopping easier. Strong brands carry a guarantee of quality which consumers trust and are often willing to pay
more for. Consumers will pay a premium (top price) for a branded product when they believe it provides higher value.
Building strong brands is an important marketing activity for companies, enabling premium pricing, and making widespread distribution easier
to achieve. Brand loyalty helps create and sustain high sales and profits.This increased value is called brand equity. Brand equity is the value
of a brand based on the extent to which it has high brand loyalty, brand name awareness, perceived quality, and strong brand associations
(these create positive feelings and reasons to buy). These associations are created by means of a strong brand identity.
Business 2000
EIGHTH edition
Cadbury Ireland - Brand Development - Building the Dairy Milk Megabrand
brand themes
A brand pyramid can help managers plan and analyse a brand’s identity.
The top tier of the pyramid consists of the brand core. Brand core
values are the genetic code of the brand and remain the same over time.
Closely related to these values is the brand proposition: the promise
the brand makes to consumers. This proposition should be easy to
understand and appeal to the target market. The middle tier represents
the brand style; or elements of the brand’s identity that represent the self
image of the brand and need to be relatively stable over time. The base
of the pyramid is formed by the brand themes which are concerned with
how the brand currently communicates through its advertising, packaging,
physical appearance etc. Brand themes are flexible and change with
fashion, technological developments and changing consumer tastes.
The brand pyramid helps managers understand the strengths of the
brand and ensure consistency of its message. This also helps to identify
opportunities for brand stretching and brand extensions. A brand extension
is the use of a well known brand name on a new product within the same
broad market or product category. We will discuss this in relation to the
Dairy Milk brand. Brand stretching is the use of an established brand
name in unrelated markets or product categories, e.g. using a well known
designer name on cosmetics, clothes, sunglasses, etc., such as "John Rocha
Waterford Crystal".
Cadbury: The Brand
The Cadbury brand enjoys a high level of brand equity in Ireland.
Research shows 96% of consumers recognise the brand, while 74% state
that when it comes to chocolate, only Cadbury’s will do!
There are three main brand name strategies:
◗ Family brand names: The parent brand is also known as an
"umbrella" brand. This term is given to product ranges where the
family brand name is used for all products. The advantage of this
approach is that positive associations with the parent brand will
Cadbury uses a combination brand strategy.The family brand, Cadbury is
linked with its famous sub-brands, i.e. Cadbury Crème Egg, Cadbury
Roses, and Cadbury Flake, to name a few. The family brand identity is
firstly communicated by the packaging with the Cadbury corporate
purple colour and the distinctive Cadbury script logo. The sub brand is
then distinguished by its own individual livery.
Recently marketers have identified particularly strong family or corporate
brands as Masterbrands. Cadbury is such a brand. However, a true
Masterbrand is more than the name of the company – it incorporates the
company’s mission, vision and values, representing them in a way that is
easily understood by consumers. IBM is another example of a
Masterbrand.
Cadbury’s core brand values include "life’s everyday pleasures that make
us feel good and never let us down. As a reward or a pick me up, we
consumers trust Cadbury chocolate to make us feel better".
Building a Megabrand:
Cadbury Dairy Milk
In the last year there has been a major development in brand strategy at
Cadbury Ireland. The Cadbury Dairy Milk brand has been stretched to
become a family brand in its own right. Of all the successful Cadbury
brands, the one with the greatest loyalty is Cadbury Dairy Milk. In 2002,
more than 19 million Dairy Milk products were sold. Cadbury made a
strategic marketing decision to leverage the value of the Dairy Milk brand
(i.e. optimise the market potential of the brand) by elevating it to a
Megabrand or range brand.
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A Megabrand or range brand spans an entire range of products, creating
relationships with products which may have been previously unseen by
consumers.
Cadbury Taste - But an ‘A La Carté Menu for Choice!’
Scope of the Megabrand
When developing a Megabrand, products are chosen for inclusion on the
basis of their compatibility with the brand’s identity. For Cadbury, the
moulded (blocks) chocolate brands were included as they were perceived
as variants of Dairy Milk. The core proposition of the new Dairy Milk
Megabrand could be described as ‘delivering recipes for life’s upbeat
occasions - i.e. no matter what your humour or the occasion, Cadbury
Dairy Milk will provide the perfect accompaniment’!
Two products in the Cadbury range created a dilemma: Wispa and
Caramel. Both were standalone products with distinctive identities. Both
had a loyal consumer base which should not be abandoned.To incorporate
these products into the Dairy Milk range called for a fresh strategy.
The Rationale
for a Megabrand
The main reasons why Megabrands can be beneficial are:
1. The Megabrand concept can help provide structure and unity to a
strategy.
2. A Megabrand strategy can add visibility to products and provide greater
credibility to consumers for a variety of offers under the brand. In
addition, it is easier for consumer to try new offers from their trusted
brand.
3. Megabrands provide economies of scale as the fixed costs of maintaining
a brand name can be spread across the sales of numerous product lines.
Creating and maintaining brands has become very expensive. Stand-alone
brands find it increasingly difficult to compete with Megabrands.
Other factors leading to the emergence of the Megabrand include growing
price pressures and greater global competition. Megabrands are better
resourced and have a greater chance of success than standalone brands.
Wispa & Caramel
◗ Popular variants with loyal customer base. ◗
Distinctive mouthfeels.
Both were block chocolate and provided a fit with the Dairy Milk
Megabrand. Their inclusion provided the opportunity to further leverage
the Dairy Milk Megabrand without alienating loyal consumers. The new
Dairy Milk Bubbly brand benefited from a new name which better conveys
the distinctive "mouthfeel" of Wispa. The new aerated chocolate product,
now in square form, which is also easier to break, proved popular. Tests
showed that 85% of Wispa consumers were likely to buy Dairy Milk
Bubbly, while 89% of Caramel customers indicated their likelihood to buy
the new Dairy Milk Caramel.
A combination of Dairy Milk Chocolate with a Caramel Centre
◗
2003 CDM brings new vibrant look!
◗
Swirls in new logo drawn on
Cadbury ‘milk goodness’ cues.
◗
Cadbury signature enlarged = stamp
of quality.
◗
Dairy Milk brand endorsement
across all variants.
◗
Colour coding ensures maximum
impact and product differentiation.
Business 2000
EIGHth edition
The 360 degree support campaign included a point of sale competition to
win a "new look", new display units, a buy-two-get-one free promotion on
100g bars, PR and ads in the trade press. The result was that sales of the
new Megabrand products exceeded targets by 12%!
In today’s competitive business environment brands have assumed a role
of growing importance. They can differentiate a company’s products and
develop customer loyalty, helping to sustain profitability in the long term.
The Cadbury Dairy Milk brand has evolved into a Megabrand,
incorporating a range of products each with their own identity, but now
under the Dairy Milk brand. This initiative is intended to leverage the
strength of the Cadbury Dairy Milk brand to the full.The strategy involved
a packaging and range refreshment strategy which has resulted in a unified,
innovative Dairy Milk brand. Having exceeded initial sales targets by a
considerable margin, the strategy can be considered a success!
Glossary
Brand core: This is the creed or genetic code of the brand;
the values which are at the heart of the brand and remain
fixed over time.
Brand equity: The value of a brand based on the degree to
which it has high brand loyalty, name awareness, perceived
quality, and strong brand associations.
Brand identity: The name and visual appearance of the
brand. It is how consumers will recognise a product/service
and differentiate it from competitors.
Brand proposition: Or brand statement, is the central
promise a brand makes to its consumers. The brand
proposition must be appealing, easily understood and
relevant to the target market.
Masterbrand: A corporate brand name that dominates all
products or services in a range or across a business. A
Masterbrand incorporates the company mission and values
and translates them into a more accessible form. (Other
examples: Lego and Nescafé)
Megabrand: A brand that spans across product classes to
assist customers in seeing relationships between products.
A Megabrand can break existing categorisation structures
and extend a brand in new ways. Also called a range brand.
(Other examples:Weight Watchers; Oral-B)
TASKS & ACTIVITIES
Business
1
Define a brand and give examples for each form a
brand may take.
2
a) What is a brand pyramid?
b) How may it be useful?
Other range refreshment initiatives involved deleting some products such
as Banoffi while incorporating new variants like Cadbury Dairy Milk
Orange Shots. This approach will keep the range fresh!
3
Design a brand pyramid for three brands of your choice.
4
a) Define a Megabrand.
b) Explain the benefits of a Megabrand.
5
Range Refreshment - Summary
Transitions
Dairy Milk Pack Evolution
To promote the new Dairy Milk
Megabrand, Cadbury implemented a
comprehensive "360 degree support"
campaign. This involved a highly
coordinated set of promotional activities
across various communications channels,
each activity bearing the same message.
This approach is known as integrated
marketing communications and ensures
that consumers receive a clear and
consistent message about a brand.
Conclusion
Packaging Refreshment
The entire Cadbury "Moulded" range of chocolate has undergone a
packaging make-over to communicate the new Dairy Milk Megabrand.The
new look retains the well recognised glass-and-a-half of milk – however it
now pours into a chocolate swirl illustrating the richness and "milk
goodness" of the chocolate. The Cadbury script logo is enlarged,
underlining its role as a stamp of quality. The purple colour is still used,
however each product also has its own colour providing an individual
identity and basis for product differentiation. A major new feature is the
use of the Dairy Milk brand across all variants: this then acts as an
endorsement of all the other product variants by the Megabrand.
Communicating
the Strategy
New Products
Analyse the packaging concept for the Cadbury Dairy
Milk Megabrand and explain its constituent elements.
6
What is meant by integrated marketing communications?
Increased Prominence of
masterbrand
Use of Dairy Milk
Umbrella
Colour Coding for
Differentiation
Maintain ‘Glass and a Half ’
Maintain ‘Purpilisation’
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16304_Cadbury