Branding strategies to create value
A Cadbury Schweppes case study

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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 boost sales of Cadbury's Fudge, but is unlikely to lift sales of Cadbury's Curly Wurly.

One approach is to promote the firm as a whole, that is, raise awareness of Cadbury's, in the hope that this in itself will boost sales across Cadbury's product range. However, like a pantomime cast's attempts to throw Cadbury's products to its audiences, a catch-all approach can be rather hit or miss and may produce a poor return.

Another way around this is to promote chocolate consumption in general. This approach would require co-operation between competitive producers and implies some loss of control for Cadbury's.

Obtaining good returns from advertising has been made harder by the fragmentation of television audiences. When only one UK television channel showed advertisements, advertisers knew that their efforts would be seen by a huge audience and might well become a talking point nationwide. Nowadays a firm knows that to reach a high proportion of potential customers it will need to place its advertisement with several TV channels. This is expensive.

In line with its adding-value approach, the challenge to Cadbury Trebor Bassett was to promote its child-orientated products in a cost-effective manner. How might the company promote more than one product at once but without the large financial outlay normally associated with such a venture? A team was put together and was asked to produce a convincing proposal.

Cadbury Schweppes | Branding strategies to create value