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Business 2000
EIGHTH edition

Developing brand identity
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
Brand Development - Building gaining market acceptance and leadership.
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

the Dairy Milk Megabrand The Brand Pyramid - Brand Meaning

use of the corporate (family) brand name, while allowing an individual
brand to be identified, e.g. Cadbury Dairy Milk.
brand core

brand proposition The Cadbury Family Range

introduction
brand style
Since setting up in Ireland more than 70 years ago, Cadbury has become the undisputed market brand themes
leader in the chocolate market with a 48% share of a market worth €473 million annually.
Cadbury Ireland is a subsidiary of The Dairy Milk brand alone accounts for approximately 33% of Cadbury’s total chocolate
Cadbury-Schweppes plc, a global leader in blocks (moulded) and bars sales, making it the number one confectionery brand in the A brand pyramid can help managers plan and analyse a brand’s identity.
market. The continued success of the Dairy Milk brand is testament to the quality The top tier of the pyramid consists of the brand core. Brand core
the manufacture of beverages and confectionery
of its brand management. This study will examine the nature of a brand and the values are the genetic code of the brand and remain the same over time.
products. Cadbury Ireland was set up in 1932, producing
critical role of managing a brand concept.The latest strategic development of the Closely related to these values is the brand proposition: the promise
just three products, including Cadbury Dairy Milk. Today, Dairy Milk brand will then be reviewed: The Building of the Dairy Milk the brand makes to consumers. This proposition should be easy to
Cadbury Ireland has three production plants, in Coolock and Dun Megabrand! understand and appeal to the target market. The middle tier represents Cadbury uses a combination brand strategy.The family brand, Cadbury is
Laoghaire in Dublin and Rathmore, Co. Kerry. All have become the brand style; or elements of the brand’s identity that represent the self linked with its famous sub-brands, i.e. Cadbury Crème Egg, Cadbury
image of the brand and need to be relatively stable over time. The base Roses, and Cadbury Flake, to name a few. The family brand identity is
centres of excellence for the manufacture of confectionery products. Cadbury - Unique taste to suit Irish tastes
of the pyramid is formed by the brand themes which are concerned with firstly communicated by the packaging with the Cadbury corporate
how the brand currently communicates through its advertising, packaging, purple colour and the distinctive Cadbury script logo. The sub brand is
More than 200 products are exported from Ireland to 30 countries then distinguished by its own individual livery.
physical appearance etc. Brand themes are flexible and change with
around the world, making a contribution of €110 million to Irish
fashion, technological developments and changing consumer tastes.
trade. Cadbury Ireland uses local ingredients and is one of the Recently marketers have identified particularly strong family or corporate
largest users of indigenous Irish materials. Using local The brand pyramid helps managers understand the strengths of the brands as Masterbrands. Cadbury is such a brand. However, a true
Best Quality Fresh Irish Milk and Sugar Cadbury
produce is a major factor in creating the legendary Cocoa Beans ‘Know How’ brand and ensure consistency of its message. This also helps to identify Masterbrand is more than the name of the company – it incorporates the
opportunities for brand stretching and brand extensions. A brand extension company’s mission, vision and values, representing them in a way that is
taste of Cadbury Ireland’s products.
is the use of a well known brand name on a new product within the same easily understood by consumers. IBM is another example of a
Creamy, Distinctive and Tastes Like More broad market or product category. We will discuss this in relation to the Masterbrand.
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 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
What is a brand? designer name on cosmetics, clothes, sunglasses, etc., such as "John Rocha
consumers trust Cadbury chocolate to make us feel better".
Waterford Crystal".
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 Cadbury: The Brand Building a Megabrand:
products can come and go over time, brands (if properly managed) can live indefinitely. Brands have many benefits for companies and Cadbury Dairy Milk
consumers. For companies; strong brands add value, and consumers develop positive associations with the brand and are less likely to The Cadbury brand enjoys a high level of brand equity in Ireland.
purchase competitors’ products. This means the brand can act as a barrier to competition. For consumers, brands help them to quickly Research shows 96% of consumers recognise the brand, while 74% state In the last year there has been a major development in brand strategy at
identify products and make shopping easier. Strong brands carry a guarantee of quality which consumers trust and are often willing to pay that when it comes to chocolate, only Cadbury’s will do! Cadbury Ireland. The Cadbury Dairy Milk brand has been stretched to
more for. Consumers will pay a premium (top price) for a branded product when they believe it provides higher value. become a family brand in its own right. Of all the successful Cadbury
There are three main brand name strategies: brands, the one with the greatest loyalty is Cadbury Dairy Milk. In 2002,
Building strong brands is an important marketing activity for companies, enabling premium pricing, and making widespread distribution easier ◗ Family brand names: The parent brand is also known as an more than 19 million Dairy Milk products were sold. Cadbury made a
to achieve. Brand loyalty helps create and sustain high sales and profits.This increased value is called brand equity. Brand equity is the value "umbrella" brand. This term is given to product ranges where the strategic marketing decision to leverage the value of the Dairy Milk brand
of a brand based on the extent to which it has high brand loyalty, brand name awareness, perceived quality, and strong brand associations family brand name is used for all products. The advantage of this (i.e. optimise the market potential of the brand) by elevating it to a
(these create positive feelings and reasons to buy). These associations are created by means of a strong brand identity. approach is that positive associations with the parent brand will Megabrand or range brand.

Business 2000 Cadbury Ireland - Brand Development - Building the Dairy Milk Megabrand www.business2000.ie
EIGHTH edition
16304_Cadbury 9/28/04 4:11 PM Page 2

A Megabrand or range brand spans an entire range of products, creating

relationships with products which may have been previously unseen by
Scope of the Megabrand Communicating
consumers. the Strategy Glossary
When developing a Megabrand, products are chosen for inclusion on the
basis of their compatibility with the brand’s identity. For Cadbury, the To promote the new Dairy Milk
Cadbury Taste - But an ‘A La Carté Menu for Choice!’ moulded (blocks) chocolate brands were included as they were perceived Brand core: This is the creed or genetic code of the brand;
Megabrand, Cadbury implemented a
as variants of Dairy Milk. The core proposition of the new Dairy Milk the values which are at the heart of the brand and remain
comprehensive "360 degree support"
Megabrand could be described as ‘delivering recipes for life’s upbeat campaign. This involved a highly fixed over time.
occasions - i.e. no matter what your humour or the occasion, Cadbury coordinated set of promotional activities Brand equity: The value of a brand based on the degree to
Dairy Milk will provide the perfect accompaniment’! across various communications channels, which it has high brand loyalty, name awareness, perceived
each activity bearing the same message. quality, and strong brand associations.

While every effort has been made to ensure the accuracy of information contained in this case study, no liability shall attach to either The Irish Times Ltd. or Woodgrange Technologies Ltd. for any errors or omissions in this case study.
Two products in the Cadbury range created a dilemma: Wispa and This approach is known as integrated Brand identity: The name and visual appearance of the
Caramel. Both were standalone products with distinctive identities. Both marketing communications and ensures brand. It is how consumers will recognise a product/service
had a loyal consumer base which should not be abandoned.To incorporate that consumers receive a clear and and differentiate it from competitors.
these products into the Dairy Milk range called for a fresh strategy. consistent message about a brand. Brand proposition: Or brand statement, is the central
promise a brand makes to its consumers. The brand
The 360 degree support campaign included a point of sale competition to
The Rationale Wispa & Caramel
win a "new look", new display units, a buy-two-get-one free promotion on
proposition must be appealing, easily understood and
◗ Popular variants with loyal customer base. ◗
for a Megabrand Distinctive mouthfeels.
100g bars, PR and ads in the trade press. The result was that sales of the
relevant to the target market.
Masterbrand: A corporate brand name that dominates all
new Megabrand products exceeded targets by 12%!
The main reasons why Megabrands can be beneficial are: products or services in a range or across a business. A
1. The Megabrand concept can help provide structure and unity to a Masterbrand incorporates the company mission and values
strategy. Conclusion and translates them into a more accessible form. (Other
2. A Megabrand strategy can add visibility to products and provide greater examples: Lego and Nescafé)
credibility to consumers for a variety of offers under the brand. In Both were block chocolate and provided a fit with the Dairy Milk In today’s competitive business environment brands have assumed a role Megabrand: A brand that spans across product classes to
addition, it is easier for consumer to try new offers from their trusted Megabrand. Their inclusion provided the opportunity to further leverage of growing importance. They can differentiate a company’s products and
assist customers in seeing relationships between products.
brand. the Dairy Milk Megabrand without alienating loyal consumers. The new develop customer loyalty, helping to sustain profitability in the long term.
A Megabrand can break existing categorisation structures
3. Megabrands provide economies of scale as the fixed costs of maintaining Dairy Milk Bubbly brand benefited from a new name which better conveys
and extend a brand in new ways. Also called a range brand.
a brand name can be spread across the sales of numerous product lines. the distinctive "mouthfeel" of Wispa. The new aerated chocolate product, The Cadbury Dairy Milk brand has evolved into a Megabrand,
now in square form, which is also easier to break, proved popular. Tests (Other examples:Weight Watchers; Oral-B)
Creating and maintaining brands has become very expensive. Stand-alone incorporating a range of products each with their own identity, but now
brands find it increasingly difficult to compete with Megabrands. showed that 85% of Wispa consumers were likely to buy Dairy Milk under the Dairy Milk brand. This initiative is intended to leverage the
Bubbly, while 89% of Caramel customers indicated their likelihood to buy strength of the Cadbury Dairy Milk brand to the full.The strategy involved
Other factors leading to the emergence of the Megabrand include growing the new Dairy Milk Caramel. a packaging and range refreshment strategy which has resulted in a unified,
price pressures and greater global competition. Megabrands are better innovative Dairy Milk brand. Having exceeded initial sales targets by a
resourced and have a greater chance of success than standalone brands. A combination of Dairy Milk Chocolate with a Caramel Centre considerable margin, the strategy can be considered a success! TASKS & ACTIVITIES
Packaging Refreshment Business
The entire Cadbury "Moulded" range of chocolate has undergone a 1 Define a brand and give examples for each form a
packaging make-over to communicate the new Dairy Milk Megabrand.The
brand may take.
new look retains the well recognised glass-and-a-half of milk – however it
2 a) What is a brand pyramid?
now pours into a chocolate swirl illustrating the richness and "milk
goodness" of the chocolate. The Cadbury script logo is enlarged, b) How may it be useful?
underlining its role as a stamp of quality. The purple colour is still used, Other range refreshment initiatives involved deleting some products such 3 Design a brand pyramid for three brands of your choice.
however each product also has its own colour providing an individual as Banoffi while incorporating new variants like Cadbury Dairy Milk 4 a) Define a Megabrand.
identity and basis for product differentiation. A major new feature is the Orange Shots. This approach will keep the range fresh!
b) Explain the benefits of a Megabrand.
use of the Dairy Milk brand across all variants: this then acts as an
5 Analyse the packaging concept for the Cadbury Dairy
endorsement of all the other product variants by the Megabrand. Range Refreshment - Summary
Milk Megabrand and explain its constituent elements.
Transitions New Products
Dairy Milk Pack Evolution 6 What is meant by integrated marketing communications?
◗ 2003 CDM brings new vibrant look! Increased Prominence of
masterbrand
◗ Swirls in new logo drawn on
Cadbury ‘milk goodness’ cues. Use of Dairy Milk
Umbrella
◗ Cadbury signature enlarged = stamp
of quality. Colour Coding for
◗ Dairy Milk brand endorsement Differentiation
across all variants.
Maintain ‘Glass and a Half ’
◗ Colour coding ensures maximum
impact and product differentiation. Maintain ‘Purpilisation’

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EIGHth edition