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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
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Brands are perceptionsIntegrated bundle of information and
experiencesIdentifies product and makerHas associations and image
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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
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Brand promiseBrand is a virtual contract between a company
and a customerFailure to deliver on a promise dissatisfactionCustomer expectations must be managed
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Brand equityIntangible value of a company beyond its
physical assetsPremium pricing method
Royalty methodElementsBrand-name awarenessBrand associationsPerceived qualityProprietary assets (patents, trademarks, etc.)Brand loyalty
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Five stepsSelect a name and symbolCreate awareness and brand identityPosition the brandCreate a brand imageCreate trust
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Choosing a brand nameBenefit descriptionAssociationDistinctionPronounceability
Choosing a brand symbolLogoVisual elementsAudio elements
Trademarks
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Aim: To ensure that the image and perceptionof a brand are maximized
Family Brands
Brand extensionsCooperative Branding
Co-Branding
Ingredient branding
Private Brands
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Customers
Employees
Government, communities, financial & investor community,
special interest groups, suppliers,distribution channel
members, the media, etc.
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Customers
Community
Employees
Shareholders
Suppliers
Media
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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
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LoyaltyShare-of-walletHeavy usersPareto Rule: 80/20
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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.
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Less risk
Fewer decisions
Fewer switching costs
Greater buying efficiencyIncreased association
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IMC can build trust
IMC is communicationAffects both the quantity and quality of
relationshipsBetween the brand and customersBetween the brand and other stakeholders
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Cadbury: The BrandLeader since setting up in Ireland >70 years ago
Undisputed market leader with a 48% SOM
The Cadbury Family Range
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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.
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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’!
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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?
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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.
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•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!
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Range Refreshment – Summary Transitions
New Products
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