Branding strategies to create value
A Cadbury Schweppes case study

Page 1: Introduction

The ultimate aim of any business is survival. At least five groups want to see a company not only survive, but flourish: its shareholders, directors, employees, suppliers and customers. In certain industries, being big may be necessary for survival but may not guarantee it. In the 1980s and 1990s Cadbury Schweppes wanted to secure its future through growth. Growth took two main forms...
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Page 2: Managing for value (MFV)

Managing for Value moves the focus of business management away from a largely 'scale-driven' approach ("How much do we produce of this? How many countries do we sell to? Are we the biggest?") towards a 'value-driven' approach ("What contribution is this brand or this product range making to the overall value of the company? What financial return are we obtaining from our ongoing investment in...
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Page 3: Revitalising brands

Cadbury's famous brands include: Cadbury's Dairy Milk, Cadbury's Crunchie, Cadbury's Wispa and Cadbury's Roses. Good brands are valuable assets, but the products underlying them still need support. This is especially true when customer turnover is high, such as when children are the main consumers and parents the main buyers. There is also a time lag challenge. Children, who stop being...
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Page 4: Advertising dilemmas

Since different chocolate-based products appeal to different age groups, Cadbury Trebor Bassett needs to offer a wide product range. Each product needs promotion, which implies an advertising budget for each product line, which is very expensive. Products which are different from each other create an advertising problem. For example, a successful advertisement for 'a finger of fudge' may...
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Page 5: Constructive thinking

From within Cadbury Trebor Bassett came an interesting, attractive proposal based on some solid propositions: For children, consumption is linked to having fun. Any consumption that children regard as fun will also appeal to their parents, who do the spending. Other companies manage to associate consumption with children having fun. For example, Disney offers Disneyland, where, in the course...
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Page 6: Cadbury LAND

In 1998 Cadbury Trebor Bassett rebranded its Cadbury chocolate lines aimed principally at children: Buttons, Fudge, Curly Wurly, Chomp, Wildlife, Taz and Freddo. These products could not all become one brand, because of their very different brand characteristics. What was needed was a new 'umbrella' that gave them some togetherness whilst preserving their separate identities. A lot was at...
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Page 7: How successful?

Cadbury LAND has achieved spectacular results for Cadbury Trebor Bassett. These include: By April 1999, children's awareness of Cadbury LAND had reached 83 per cent On children's scoring of 'who makes the best chocolate for kids?' Cadbury rose from 47 to 67 per cent In 1999, sales of Cadbury LAND Buttons, the focus brand, grew 22 per cent In Spring 1999, Cadbury achieved the biggest share of...
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Page 8: Conclusion

Managing for Value requires a company and all of its employees to understand how and where value is created and how and where it is destroyed. Cadbury LAND was created within the disciplined framework that an MFV approach imposes. Its success is built around strict observance of some familiar rules of business: Test to confirm that a new idea really is a good idea. Remember whose money...
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