Brand Audit
Contents
3.1.2. Segmentation, Targeting and Positioning. 3
- Brand Awareness and Brand Image. 6
- Conclusion. 6
- Bibliography. 6
Brand Audit
1. Abstract
The formation of the Cadbury Dairy Company began in 1905 in UK. Since that time, it has been introduced in Australia; it has lead the market acquiring a market share of 30%.
The main reason for the brand audit is to offer a better scope of the varied attributes of branding like the strategies used and how to connect with the clients. Having been through changes for some time, the brand has been able to develop to a great product that is able to with stand change in demand. The paper looks to offer ways on how to improve its supply and brand preference among the clients.
2. Introduction
2.1. Brand History
In the early 18 century, John Cadbury started a shop at a Bull shop. This business, managed by him, involved mainly tea and coffee and was the start of the Cadbury foundation. Currently, it is the biggest producer of chocolate. For amount a century, the business was basically a family business then later incorporated other people in 1962.
The Cadbury business was managed by the Benjamin and John who later left the business to their sons Richard and George. The brothers came up with improved method of processing cocoa butter from cocoa bean. This made drinking cocoa better and pure. They started to market the product and increasing their success in other countries (Cadbury, 2013). This success led to growth; companies started to be constructed in other parts outside Birmingham. In 1881, the company acquired its first export order from a representative in Australia.
In 1906, the Cadbury brothers came up with a new recipe for the milk chocolate that increased the variety of the product to clients. Later after the Second World War, innovations began which brought about cheap chocolate for the local market. This led to increase in facilities for the production of the chocolate to the markets. In 1922, the Cadbury Brothers started the first oversees plant in Australia followed by other regions as well as acquisitions like the J.S. Fry & Sons. A new company was created in Australia called Cadbury-Fry and Pascall. The company was based in Claremont, Tasmania which was perfect due to its closeness to the Hobart city, affordable electricity and good supply of fresh milk.
In the 1939-45 war, the Cadbury supplied milk to the Australian forces and with the help of a formula; it did not melt in heat. Supply was high but dropped in the local stores and homes (Cadbury, 2013). Hence in 1967 it acquired a manufacturer, MacRobertson Chocolates which accorded the company another processing base as well as a variety of brands like Cherry Ripe and Freddo Frog.
The company later joined with Schweppes Australia forming a common Cadbury Schweppes identity. It later grew in the 80s after acquisition of Red Tulip and increased its range of products to have Easter confectionary and Dinner Mints.
In 2009, the confectionary and beverages businesses of the Cadbury Schweppes Company separated and started operating as Schweppes Australia and were managed by Asahi Breweries (Cadbury, 2013). In April the same year, Cadbury Australia used another name: Cadbury Pty Ltd while Cadbury in New Zealand changed name to Cadbury Ltd. In 2010 it becomes part and parcel of the Kraft Foods family.
3. Brand Audit
The market strategies used by the Cadbury Pty Ltd has to show the goals of the general business. The approaches used have to be aligned with the general company objective. However, the market strategies are not always secondary to company goals. The techniques used have to affect the tendencies of the decision made in areas like risks and transformations. These tendencies do not only affect the setting of the business but similarly the managers and trend of the business.
3.1. External Influences
The external aspects may vary from the clients to the media as well as the health and safety laws. These external factors may influence Cadbury in terms of promotion, product design and sell of product.
3.1.1. PEST Analysis
This analysis will assess the external setting of the company and global aspects of the Dairy Milk Business as well as the problems that may arise (Cadbury, 2013). It offer a fast and visual representation of the external pressures that business faces and the issues arising from the strategy used.
3.1.1.1. Political
There are a number of political advancements at Cadburys; a good example is the Weights and Measure Act that makes it mandatory for the product to have a label showing its weight. This is a global law that has to be followed.
Regional issues may arise from environmental acts, where the company is built and if it is set up in an environmentally stable region. Additionally the government will increase subsidies to these companies in case of high costs.
3.1.1.2. Economic
The client operations may be altered in a year, their spending trend and desire to spend may depend on the interest rates. This will impact the strategy with high prices and decline in the monthly income ranging (Cadbury Australia n.d, p2). Moreover, the economic variables may vary depending on the needs of the clients. A good example is inflation where prices increase for the raw product and production thought the clients won’t desire prices to hike in the finished product. The company will have to make a balanced price with inflation so as to hinder any loss.
Unemployment levels may impact the company if it is located in a region where there are limited unemployment levels. This makes it hard for individuals to engage in activities for the company, however if the unemployment level is high there is no need for additional staff.
3.1.1.3. Social
The social change of Cadbury may have an impact on the strategy in terms of management and design. For instance, a drop in birth rate and life expectancy being high, people will live longer and hence high demand for older people and the averaged aged and not the young population. However if there was high birth rate and a drop in life expectancy then demand for young individuals would be high.
Dieting may be a great issue. Studies show that obesity is high hence demand for chocolate is bound to drop as the need for healthy food is high. Additionally, fashion and tastes may alter the needs for people (Cadbury Australia n.d, p2). The promotions may similarly alter the way money is spent; a celebrity connected to a product may later the demand of a product.
3.1.1.4. Technological
From the start of the company, technology has altered how Cadbury operates. The operation for the company is much faster and efficient till the present day. The production has changed to the use of machines that make the production of the product much easier. Hence if there is increase in demand then the company is able to handle it. Communication on the other hand has developed leaving behind marketing using mouth and changing to magazines, internet and television. This will make it possible for the order to advance the product to customers.
3.1.2. Segmentation, Targeting and Positioning
3.1.2.1. Segmentation
Geographic segmentation for the product is that it reaches a wide region with extensive distribution- using offices and facilities. The impulse segment is important for the clients that consume the chocolate based on impulse.
3.1.2.2. Targeting
The target of the Cadbury Ltd is Kids and Adults that are varied occasions or for leisure.
3.1.2.3. Positioning
This shows an expression of love. It is a brand which is carefree for key moments in life. The position has been to interface with clients on a private and associative base (Cadbury Australia n.d, p3). The company has been keen on positioning so as to be a part of clients constant use at any period.
3.1.3. Marketing Mix
3.1.3.1. Product
The Cadbury Pty Ltd has chocolate from milk, sugar, cocoa and flavors. The Cadbury Dairy has a number of varieties; Fruit & Nut, Almond among others. The product comes in several sizes and targets children and adults.
The cocoa has a number of benefits; it can reduce blood pressure from its flavanols and polyphenols, it has several vitamins like B1, B2 and E as well as minerals; potassium, sodium and zinc. It is recommended that Cadbury Pty Ltd ought to be keen on energy elements for their market as well as focus on calories.
3.1.3.2. Place
Availability is vital to the company’s success. The Cadbury Dairy Milk is sold to retailers and wholesalers in the chain of distribution composed of 2100 and 450,000 retailers (Cadbury Australia n.d, p3). The Cadbury Pty Ltd is popular for its distribution and ought to focus on stores, canteens and institutions.
It is recommended that the small stores to the big ones that there ought to be easy availability and constant restocking so that the client can get constant supply. Attractive display will make the buyer buy the product.
3.1.3.3. Price
The product is considered to be a product that can be consumed constantly and not on occasions. Had the price been high, the demand of the product would be small. The company has accorded the product varied prices to the product which is its strong point (de Jonquieres 1993, p21). With availability, taste and packaging, the product is well received in regards to price. The product however may opt to reduce its price so as to increase consumption; from $50 to $35-42.
3.1.3.4. Promotion
The strategy used by the Cadbury Pty Ltd is based in promotions for Silk, Dairy Milk and Eclairs. The other brands are Crackles, Fruit & Nut and Temptations among others (Cadbury Australia n.d, p3). A good size of the sales is based on impulse buying hence the variety in promotions in TVs, Internet & Newspaper among others.
In the early times, the adverts were based on increasing the consumption to the clients which was only used by children. The Cadbury Pty Ltd has changed to mass consumer that incorporates all of the adults.
4. Customer Based Brand Equity Model
The Cadbury Dairy Ltd in addition to creating a rigid brand awareness, it has been backed by an all levels pyramid. This is known as customer based brand equity pyramid. It is common for its brand performance for its success and extraordinary taste for Australian Chocolate. The notable quality of its taste is well added with the image of the brand. The packaging of the product is of high priority.
This was with the help of:
4.1. Research Methodology
So as to gauge the brand recall, perception alongside competition and consumption, this research was undertaken using a questionnaire for a sample of clients that are from varied age groups.
4.1.1. Analysis
The Cadbury has been noted to have a strong brand recall when compared to Nestle and Lindt. Its consumption has been weekly with most of them taking it for leisure. The perception that it has acquired from the clients is that is like any other chocolate in the market.
The product’s quality in regard to competition has been excellent with a number of the clients attributing its availability as being great. Additionally, the trust that it has acquired has been great.
5. Brand Awareness and Brand Image
The Cadbury Dairy Ltd in addition to having a high level Brand Awareness, it lacks a good Brand Recall. This is acquired when the Dairy Milk has high mind effect. The brand image of the company is vital in creating brand equity of the Dairy product using mode of special brand connections.
These connections is based on the perception aspect of the brand, clients regard it as a good product of certain occasions (de Jonquieres, Guy 1993, 21). Starting from the Neil Diamond campaign in 2008 to the Gorilla campaign among others, the company has been able to manage its rigid, special, favorable brand connections in the mind of the clients which are great.
To help the brand recall and image, the Dairy Company ought to seek a strong distribution model and great packaging that improves the brand relations and assist in improving the equity of the brand. A number of clients have a rigid connection to it despite the health issues connected to it.
The company ought to come up with special chocolates for occasions like New Year among others. Additionally, the company ought to use attractive displays that would attract buyers towards impulse buying as well as coming up with special Chocolate Boutiques.
6. Conclusion
The Market in Australia is huge for the chocolate industry. The industry is special with a great integration of consumption trends, tendencies, notions, wage size and spending. Getting to know the preferences of the clients and desires is vital to the development of the industry. Economic allocation with better supply models is vital in keeping a good brand loyalty level.
The Cadbury milk meets the needs of all these aspects and hence has kept a good position as the front runner in the market from the time it was introduced in the Australian.
7. Bibliography
Cadbury, 2013. Cadbury in Australia. Acquired from: http://www.cadbury.com.au/about- cadbury/cadbury-in-australia.aspx
Cadbury Australia. Cadbury Australia Revists Values of the Past to Drive a Safer Future, p2. Acquired from: http://www2.dupont.com
de Jonquieres, Guy 1993. “An Uncomfortable Animal Seeks Big Game Status,” Financial Times(London), p. 21.
