brand mgmt w08

8/4/2019 Brand Mgmt W08

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To understand that a brand is more than aproduct To examine the five steps in building a brand To consider the five strategic brand decisions

that affect how marcoms are used To understand how IMC build relationships

that create brand value To examine the anatomy of profitable brand

relationshipsCadbury Megabrand Case



Brands are perceptionsIntegrated bundle of information and

experiencesIdentifies product and makerHas associations and image



Brands transform productsConsumers use tangible attributes to decide

whether two products are differentConsumers use intangible attributes to decide

how two products are differentQuality and valueBrand imagePerceptions of brand users

Intangible attributesDifficult for competitors to copyMore likely to involve consumers emotionally



Brand promiseBrand is a virtual contract between a company

and a customerFailure to deliver on a promise dissatisfactionCustomer expectations must be managed



Brand equityIntangible value of a company beyond its

physical assetsPremium pricing method

Royalty methodElementsBrand-name awarenessBrand associationsPerceived qualityProprietary assets (patents, trademarks, etc.)Brand loyalty



Five stepsSelect a name and symbolCreate awareness and brand identityPosition the brandCreate a brand imageCreate trust



Choosing a brand nameBenefit descriptionAssociationDistinctionPronounceability

Choosing a brand symbolLogoVisual elementsAudio elements

Trademarks



Aim: To ensure that the image and perceptionof a brand are maximized

Family Brands

Brand extensionsCooperative Branding

Co-Branding

Ingredient branding

Private Brands



Customers

Employees

Government, communities, financial & investor community,

special interest groups, suppliers,distribution channel

members, the media, etc.



Customers

Community

Employees

Shareholders

Suppliers

Media



IntensityAwarenessIdentityConnectedCommunityAdvocacy

Managing expectations

Relationship ≠ exploitationRelationship = win-win

R e l a t i o n s h i p i n t e n s i t y

N u m b e r o f

r e l a t i o n s h i p s



LoyaltyShare-of-walletHeavy usersPareto Rule: 80/20



Impact on costsCosts less to sell to current customersRelationships amortize costs of acquisitionLoyal customers are brand advocates,

reducing marcom costsSatisfied customers take less handholding

Impact on sales and profitsLoyal customers buy more

Loyalty increases long-term customer valueDecreasing defections increase salesDisappointed customers spread negative

w.o.m.



Less risk

Fewer decisions

Fewer switching costs

Greater buying efficiencyIncreased association



IMC can build trust

IMC is communicationAffects both the quantity and quality of

relationshipsBetween the brand and customersBetween the brand and other stakeholders



Cadbury: The BrandLeader since setting up in Ireland >70 years ago

Undisputed market leader with a 48% SOM

The Cadbury Family Range



The Cadbury Dairy Milk brand accounts for33% of Cadbury’s total chocolate sales

Number one confectionery brand in themarket

Cadbury made a strategic marketing decision: to leverage the value of the Dairy Milk brand (i.e.

optimize the market potential of the brand by elevating itto a Megabrand or range brand

Cadbury wished for The Cadbury Dairy Milkbrand to be stretched to become its ownfamily brand.



Scope of the Megabrandproducts chosen for inclusion based on

compatibility with the brand’s identity. e.g. themoulded (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, CadburyDairy Milk will provide the perfect accompaniment’!



Identify:Family Brand NamesIndividual Brand Names

Combination Brand NamesHow would you visually identify Cadbury

Dairy Milk as a Megabrand?

How would you incorporate Wispa andCaramel?



Cadbury uses a combination brand strategy. The family brand, Cadbury is linked with its

famous sub-brands, i.e. Cadbury Crème Egg

The family brand identity is firstlycommunicated by the packaging with theCadbury corporate purple colour and thedistinctive Cadbury script logo.

The sub brand is then distinguished by its ownindividual script.



•Increased Prominence of

Family Brand•Use of Dairy Milk

Umbrella•Colour Coding for

Differentiation•Maintain ‘Glass and Half’•Maintain ‘Purpilisation’

•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 ensuresmaximum impact and

product differentiation.

CDM brings new vibrant look!



Range Refreshment – Summary Transitions

New Products

brand mgmt w08

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