Marketing Communications & Branding: Review and Proposal for Cadbury’s Wispa relaunch 2007

Matthew Usher 4132117 Marketing Communications & Budgeting A report presented to Okey Onyia Deadline: 21/03/2009 1200 Word Count: 2, 597 (2.4%+)

UELM: MARKETING STRATEGY & IMPLEMENTATION LTD. © 2009

Executive Summary (see Appendix 1)

Cadbury Trebor Bassett (herein “Cadbury”) is the leading chocolate manufacturer and distributor in the UK, with a market share of 35.3% of the market in 2007 (Mintel, 2008), only followed by Masterfoods with a range of sub brands taking 30% of the market. The marketplace for chocolate retailing is changing considerably, with legislative restrictions demanding change across the market. Cadbury has recently embarked upon a series of advertising with an appeal to a more adult market, integrating a number of quirky elements to drive word-of-mouth such as the recent ‘eyebrow’ campaign. Wispa had benefited from a loyal following of consumers from 1983, of which great numbers went on to exploit new technologies to demand the return of this product. Cadbury acknowledges the common demand for previously popular products and features within their range, but had not seen a following on this scale with numerous YouTube appearances and forum subjects devoted to the objective to see the return of this line (Brand Republic, 2007). Cadbury, following a number of exaggerated acts of appreciation from fans re-launched the product for a limited run of 23million units in 2007 (WARC, 2008). This launch was supported by an integrated marketing campaign which will be reviewed in this document, and a new proposal made based on any downfalls found. This, by Philips’ (2000) definition will lead to 360-degree integrated marketing communications that by the multitude have suitable multiplier effects on awareness and brand response on the targeted segment of C2DE, women to create truly measurable accountability for the campaign.

Matthew Usher

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UELM Marketing Strategy and Implementation March 2009

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The Campaign (see Appendix 2) This campaign remained limited, as per the production for this relaunch;


Outdoor

A small number of outdoor printed formats for phone boxes, and Adshels were developed, and were applied across the U.K. achieving a broad reach of consumers.


Online

This campaign was reactive to online groups such as that of social networking facility Facebook, with a scale of over 14, 000 members, and countless YouTube videos campaigning for the product’s return. For the campaign itself, a microsite was developed within the cadbury.co.uk domain for Wispa; this differed to the dedicated URL implemented for other brand in the portfolio such as Crunchie ‘getthatfridayfeeling.co.uk’ for example.


Instore

Cadbury had negotiated an increase in ‘purple shelf-space’ to accommodate the product in supermarkets and launched a campaign to smaller retailers (See Appendix 1) such as corner shops offering them the product on a by-request basis for this trial run re-launch of the product.


Television Sponsorships

Though the sponsorship was due to end in late 2007, Cadbury’s did not exercise the sponsorship screen-spot for this re-launch in-line with the wider strategy to close the sponsorship deal with ITV (BBC News, 2006). By definition this campaign was a pincer campaign, meaning “two forms to the full panoply of media against one broad message” (Philips, 2000. p1), that meant Cadbury would use a limited and controlled variety of materials for the project, but may be more limited to the

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audiences that it can satisfy.

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Criticisms (see Appendix 3, 4) When coming to evaluate the effectiveness, it may be useful first to consider what a true integrated marketing campaign; Philips (2000) for example, proposes two criterions; “that it employs more than one medium, and it delivers more than one message”. By this definition, Philips (2000) also recognises the convergence of materials to roll-out the same message, identical reproduction of brand, logo, and imagery. Further to this though, discussion is made of the latter point, that there needs to be consideration given to various audiences and whether a different approach and message need to be tailored for these, and therein would an increase in executions in various channels be necessary. It may be useful at this stage to consider the wider Cadbury operation, in response to Shultz and Shultz’s (2004) definition of IMC; “a process by which companies accelerate returns by aligning communication objectives with corporate roles” (Shultz and Shultz, 2004. p.3) Cadbury splits its communication-distribution and marketing activity into various departments, for small, medium and large outlets (such a corner shops, franchises, and major chains). This results in varying efforts across the brand within different formats, and conforms to Shultz and Shultz’s model of non-conforming organisations, where department’s act as their own “unique profit centre[s]” (Shultz and Shultz, 2004. p3). Though Cadbury employed some quantitative research of the scale of following and demand on Facebook for the re-launch of the discontinued product (identifying 5 groups, mobilising approximately 13, 799 consumers), the online content for the campaign failed to materialise in the same channels, and appeared only as a microsite on the cadbury.co.uk domain. In times of vast technological development, organisations must learn from Metcalfe’s law and capitalize on the ‘network idea’ (Mac Hulbert, et al. 2003) and respond the consumers evident usage demand. deChernatony (2006), cautions organisations to have an eye on the ‘brandsphere’ (p.196) in the ever-changing wider and online environment, and in-particular maintain control over the brand where it is tending to be “adopted by communities” and not just “used by customers” over tangible assets for consumers (2004, p.11). The implications for Cadbury are that

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consumers did not feel a true sense of ownership or involvement in the return of the product.

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(p.198), Shultz and Shultz imply this importance by claiming the brands importance, even

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In recent campaigns for other family products, Cadbury have wised-up to the dynamic nature of online, and particularly the changing format of relationship.

When considering the content on-screen and outdoor content it is worth adding some context to the activity that Cadbury is already embarking upon, where they have developed a sub-brand ‘A glass and a half full productions’ in-which they embarked on some guerrilla marketing tactics set upon traditional mediums, ironically centred around a gorilla. Though it has been established that there are benefits of having tailored communications, it is arguably a great downfall not to have used the ‘glass and half…’ brand extension further to develop its’ credibility, as by definition Fill (2006) speaks of such tactics being suited to circumstances of short-term visibility and short life-offering. Kapferer (1998. p.117) develops this mentality explaining that proactive management of a brand expects a “gradual accumulation of attributes”, thus being attained after a number of uses for various products

It is also necessary to consider the wider brand of Cadbury and in doing so will use

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Kapferer’s brand identity prism (1997). Cadbury is a passionate brand (Twivy, 2000) that has

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in this case.

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a number of consistent themes of fun, indulgence, inner-youth and luxury running through many of its product lines, the degree to which each is emphasised is dependent on the chosen products positioning.

Key facets of the prism include the personality element of the brand, and therein the relationship with consumers and driving this forward to achieve a level of involvement (Fill, 2006. p.397). This involvement transcends through the prism to generate a feeling of selfimage extension by the brand. The succession user generated content online as a result of the ‘glass and a half full productions’ content only adds solidarity to this argument. Another weakness is the Cadbury masterbrand failing to appear on the packaging for Wispa relaunched. Cadbury underwent a rebranding exercise to reel-in products under the Dairy Milk brand in 2003; this was not successful in every segment, so products are slowly returning to their original positioning but with a newfound domination of the masterbrand logo on product packaging. Wispa neglecting this, and further not using the Cadbury purple pantone 2685C, which Brassington and Pettit (2006) identify as being a very visual facet extension to the brand, to which consumers attach value and emotional attributes, is an irresponsible error. (see Appendix 5)

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No Masterbrand

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Though a number of branding decisions could have been better-considered, on the whole Wispa as an extension is consistent with the overall positioning for Cadbury, and using ‘limited production run’ creates a good test market for its return (Davis, 2000). Returning to customers, brand communications and involvement, and the success of this campaign; the campaign demanding little more than purchase-behaviour from consumes satisfies only sales objectives and does little more for the brand. It should learn from the brand prism and allow projection onto the brand (Kotler, 1997), and stimulation of two-way communications by means of a profile strategy. The current strategy was a mixed push/pull strategy (Fill, 2006. p.331) with uncomplimentary elements of each, to drive retailers (especially smaller stores) to actually stock the line, and end-users to buy-it, the process was over-complex for a limited production-run, and demanded nothing more than sales relying too heavily low-quality quantitative research.

Context Analysis The confectionary market is a highly competitive and saturated market, Cadbury’s key strategy for this environment has been to occupy ‘purple shelf’ in stores, and producing a variety of sub-brands that may appeal to various other segments, such as The Natural Confectionary Company, and Trident for example (Brassington and Pettit, 2006. Cadbury, 2009). Contrary to the aspirations of Cadbury, these new products have not compelled the same attention from consumers, and it is still chocolate confectionary that prevails. Tighter regulation on advertising content, increasing concerns of Fairtrade content, and environmentally-friendly supply chains, are all prominent factors in the mind of today’s consumer. This environment defines the scope of activity for any such campaign, capitalising primarily on brand-equity: “[as the] composite of the brands presence, identity/image, perceived quality, and commitment among constituents, culminating in long-term financial value to the firm and its stakeholders” (Shultz, and Shultz, 2004. p.309)

Customer & Business Context Mintel (2008) estimates limited growth in the chocolate confectionary industry of between 1.68% and 2.36% 2008-13, and places emphasise on the continued growth of this segment understand the consumption of products being particularly in the context of a treat, and with

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greater presence within the C2DE (46%) segments, and a luxurious indulgence (37%) within

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regardless of increased media attention on healthier alternatives. Mintel also helps Cadbury

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the ABC1 segment – with a 10% increase estimated in this segment 2008-13. For this particular product, its nature and distribution channel will define the target audience as C2DE, females, 20-26yrs, additional to this, and for direct mail list targeting, these females are currently renting and with subscriptions to magazines such as heat, and weekly Bauer media publications.

Marketing Communications Strategy Objectives and Positioning This product can be treated as a new product and a product leaving the market, and therefore a ‘building strategy’ is most appropriate for growth of market share, and later a ‘harvesting strategy’ to satisfy sales objectives (Jobber, 2007). In the longer term, and in the case of a return for the product, an emergent strategy would be most appropriate in order to be responsive to the changing market (Baker, 2000).

Corporate “to be the biggest and best confectionary company”, with a governing objective to deliver superior shareholder returns, through a process of Growth, Efficiency, and capitalising on core capabilities (competencies) (Porter, 1987) of the organisation (Cadbury, 2009).

Marketing ‘to generate an increase in overall sales for Cadbury chocolate products in the UK by 3% (representative to the amount of other products offering all-year round), within a period of 3-months through the sale of the limited-run of 23-million bars.’ ‘Increase market share by 0.42% for the year 2007, tracking above industry estimates’

Communication In recognition of the above objectives, the communication objectives seek to: ‘Raise awareness of the Wispa return to the target market of C2DE consumers as described by an ambitious 60%, with an energetic and well-targeting marketing

million hits, and 70, 000 click-through prompts to create user-generated content’ © UELM Marketing Strategy & Implementation Ltd;. Matthew Usher. 4132117

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‘Stimulate consumer involvement through direct mail, onto the online domain by 2

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communications mix’

Promotional Tools Consumers can add value to the brand in its communications, and customers can derive benefits from the reassurance of advertising (MacHulbert et al. 2003). Therefore the mix of elements is a means to achieving a high level of awareness and sales effectiveness.

Direct Marketing There is an interesting array of thought on Direct Marketing (DM) in this particular category; deChernatony (2006) denotes that this may be a perceived intrusion, warning of the varying interpretation by end-consumer and by organisation. Roberts and Berger (1989) on the contrary, celebrate DM’s potential to create an interesting forum for the promotion of certain FMCG categories, which rather than being pestering, can encourage brand interaction and consumer dialogue. Direct Marketing in the context of this campaign would be centred on a more traditional mail format, as with a good list, this can be more effective in targeting prospective customers, than mass media (Jobber, 2007). Assuming the sourcing of an up-todate and relevant list, this will allow for a more desirable process from sender to receiver, as any form of sign-up scheme using online would not be timely enough, though direct mail will lead into online activity. The direct mail content will appear in the format of a lost-letter,

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redelivered from the 80’s in-keeping with the consistent themes of the campaign.

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Advertising This campaign will reach a wider target audience with the use of the television sponsorship that currently stands with Coronation Street. Outdoor and street furniture in-particular will be heavily used as Fill (2006) identifies its increased strength in targeting and presentation, as well as crediting its reputable qualities for conveying brand messages. There must be congruency across the multiple-medias of the message and style being used, and therefore the nostalgia will be aligned in the imagery across all formats.

Sales Promotion This tool will be used, but to limited effect, for very clear reasoning – though sales promotion is effective, and provides measurable results and good immediate sales figures (Schultz, et al. 1997), there would naturally be difficulty in direct attribution to success by methods should multiple tools be used, as they are. Additional to this, the tool may have undesirable brand implications taking into account consumer seeking value in brand messages (deChernatony and McDonald, 1998), and their involvement and self-reflection onto the brand (Aaker, 2002). Sales promotion will be used on product packaging, to warrant a 5p discount of the next purchase, and will appeal to the consumer already indulging in the product, but will also provide a channel of offering to audiences that regulation forbids directadvertising towards.

Financial Estimates Cadbury adspend at 14, 880, 000 in 2007, a ratio of 1:0.02 adspend to sales, a 35% increase on 2003 figures, and a representative figure to forecast forward in the changing environment. The brand leader took a significant 7 million of this spend in 2007 (Mintel, 2008). Sale of 23 million units will generate 9.6 million GBP; against an anticipated spend of 1.8million GBP on promotion, which will deliver a ratio 1:0.53 adspend to sales, representing a marginally greater expenditure than base.

Control and Evaluation, Feedback “Activity control can be defined as the process of ensuring that planned marketing activities produce desired results” (adapted from Woodward 1970). The success of the

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accountability is increasingly of importance (guided by Jaworski, 1988);

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implementation will be measured on traditional metrics, in an environment where

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‘Financial assessments of productivity’ – monitoring actual financial results, and assessing to which the results are cohesive with the objectives of this campaign. ‘Outcome focus’ – on the productivity of the campaign for the brand, and its various stakeholders Industry metrics, measuring each of the mediums used in the various formats, to assess true effectiveness. Feedback on the campaign will be obtained with various consumer-facing data-collection interfaces, including that of the website, and some limited telecommunications contact with

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Bauer media consumers, to assess recall and interaction with campaign elements.

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References 1.

Kotler, Philip (1997). Marketing management (9th edition). New Jersey: Prentice Hall.

2.

Shultz, D, and Shultz, H. 2004. IMC, the next generation: five steps for delivering value and measuring returns using marketing communication. London: McGraw-Hill Professional [Accessed March 9 2009] Accessible from: http://books.google.co.uk/books?id=gsg0c11h46EC&printsec=frontcover&dq=imc+next+generation&client=firefox-a

3.

(Twivy, 2000 in) Brassington, F, and Pettit, S. 2006. Principles of Marketing. 4 Edition. Essex: Pearson Education

4.

Kapferer, J. 1997. Strategic Brand Management. 2

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Shultz, D, et al. 1997. Sales promotion essentials: the 10 basic sales promotion techniques – and how to use them. rd 3 Edition. London: McGraw-Hill Professional

6.

Aaker, A. 2002. Building Strong Brands. London: Simon & Schuster UK (Paperback edition)

7.

Jobber, D. 2007. Principles and Practice of Marketing. 5 Edition. Berkshire: McGraw-Hill Education

8.

deChernatony, L. 2006. From Brand Vision to Brand Evaluation: The strategic process of strengthening brands. 2 Edition. Oxford: Butterworth-Heinemann

9.

Davis, S. 2000. Brand Asset Management: Driving profitable growth through your brands. California: Jossey-Bass Inc.

th

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Edition. London: Kogan Page

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10. MacHulbert, J, et al. 2003. Total Integrated Marketing: Breaking the bounds of the function. NY: Free Press, Simon & Schuster Inc. TH

11. Fill, C. 2006. Marketing Communications: Engagement, strategy and practice. 4 Education,

Edition. Essex: Pearson

12. Jaworski, B. (1988). Toward a Theory of Marketing. Journal of Marketing. vol.52 no.3, p23-39 [Accessed 19 March] Accessible from: http://web.ebscohost.com/ehost/pdf?vid=3&hid=2&sid=6ac1d32b-3370-46c8-9c44ce0bc47b001d%40sessionmgr108 13. Marketing. 2007. Cadbury heralds Wispa return with microsite. London: Haymarket Brand Media [Accessed 12 January 2009] Accessible from: http://www.marketingmagazine.co.uk/news/741704/Cadbury-heralds-Wispa-returnmicrosite?DCMP=ILC-SEARCH 14. Marketing, 2007. Focus on ... Cadbury Wispa relaunch. London: Haymarket Brand Media [Accessed 17 January 2009] Accessible from: http://www.marketingmagazine.co.uk/news/740546/Focus-Cadbury-Wisparelaunch?DCMP=ILC-SEARCH 15. BBC News. 2006. Coronation Street loses sponsor. London: British Broadcasting Corporation/Reuters [Accessed 12 March 2009] Accessible from: http://news.bbc.co.uk/1/hi/business/6148006.stm 16. WARC, 2008. Cadbury – Wispa re-launch. Oxon: World Advertising Research Centre [Accessed 12 January 2009] Accessible from: www.warc.com

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19. Baker, M. 2000. Marketing Strategy and Management. 3 Edition. Basingstoke: Macmillan Press.

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18. Philips, D. 2000. How to Evaluate Integrated Campaigns.Oxon: Admap, World Advertising Research Centre. [Accessed 12 January 2009] Accessible from: www.warc.com

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17. MINTEL MARKETING INTELLIGENCE. 2008. Confectionary Market [March] 2008: Mintel Marketing Report. London: Mintel International Group. [Accessed 12 March] Available from http://academic.mintel.com

20. Roberts, M, and Berger, P. 1989. Direct Marketing Management. London: Prentice Hall International (UK) 21. Cadbury Global. 2009. Corporate Brochure Spring 2009. Bourneville: Cadbury Global [Accessed 16 March] Accessible from: http://www.cadbury.com/SiteCollectionDocuments/CA_Corp_Brochure_AW_Double.pdf

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22. Cadbury Global. 2008. Creating Brands people love. Bourneville: Cadbury Global [Accessed 12 January] Accessible from: http://www.cadbury.com/ [Document no longer available on site]

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Appendices Appendix 1 Endnotes & Background Information Information *“Cadbury” – Cadbury Trebor Bassett, now Cadbury Global, at the time of this campaign were still in merger and operation as Cadbury Schweppes Ltd. References made to product developments, brands and campaigns acknowledge the partnerships contribution and joint strategies as far as is applicable. Cadbury’s Wispa was launched in 1981 and was a strong product for the brand until 2003, where the corporate strategy required an investment on the Cadbury Dairy Milk brand; for Wispa ‘fans’ this meant the launch of the Dairy Milk Bubbly, which was dropped from the line-range within two years. Masterfoods has historically struggled with lead-brand recognition, but its sub brands such as Mars, Twix and Snickers have always delivered strong performance; Cadbury however has been recognisable on all of its range, but had not been entirely unified in its creative approach – this being an objective of the reviewed strategy in 2003.

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Loyal consumers to a number of Cadbury’s sub brands has become alienated, and many of the newly developed Dairy Milk blanket branded products have been dropped and new product development take place on innovations in the market, such as Crème Egg twisted, and the return of Crunchie and Picnic.

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Appendix 2 Materials to Retailers

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Phone Booths

Instore Merchandising Adshels © UELM Marketing Strategy & Implementation Ltd;. Matthew Usher. 4132117

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Campaign Elements Elements

Appendix 3 SWOT analysis SWOT analysis of Cadbury

Strengths

Weaknesses

•

Long Heritage

•

Immense brand Strength

product recalls, poor factory hygiene, moving products

•

Cocoa Partnership

abroad

•

Core Business, and Supporting sub-brands outside of

•

Inconsistent advertising format

corporate branding

•

No common or well-established formats or

•

•

Fast manoeuvre in current situation

Opportunities •

•

spokespersons.

Threats

Current move towards Fairtrade status on some Dairy

•

Highly competitive and innovative market.

Milk ranges.

•

Healthy alternatives that are more concentrated on

International markets creating great opportunity, both for export sales, and for lower-cost manufacturing,

cereal content are great competitor already, as is fruit. •

with recent move to Poland. •

Current press is very poor, especially on a number of

Tighter regulation of advertising content is causing extreme difficulty to provoke desire for product.

Further development of glass and a half full

•

Increased promotional activity required as a result of advertising restrictions may lead to some marginal-

•

Rebirth of brand figures such as Caramel Bunny

reduction.

•

Increasing Population.

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production concept

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Appendix 4 PESTEL analysis A look at the macro environment. Political: • •

Increased involvement in sale of product, and population diet, therefore growing concern for healthy products. Increased involvement over the restriction of advertising.

Economical: • • •

More disposable income than ever before, great opportunity for Cadbury to appeal to this use. In international markets, varying costs of production and distribution due to subcontracting. In local market, consideration of relative expense of product vs. healthy alternatives.

Social: • • •

Social consumption of product. Social pressures to consume alternatives. Less practical at times in year, and needs stimulation to purchase.

Technological: • Various technological developments are permitting increased production, and innovative new lines. • Convergence of products into variety boxes such as Cadbury Hero’s is acting as a marketing opportunity in itself. • Manufacturing and Distribution channels heavily advanced. • Great opportunity for more targeted advertising in new formats to avoid legal restrictions. Environmental: • Fairtrade. • Cocoa Partnership. • Cadbury Purple goes Green campaign.

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Legislative: • See Political.

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Appendix 5 Brand Map

Formal Luxury

C2DE

ABC1

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Casual Treat

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Appendix 6 Self Reflection Q1. I think the key strength of this assignment, is the consideration that it gives to the strength of the Cadbury brand, and I have given great though to the analysis of the current environment with its proposals. Q2. Assuming I had more time, I would have liked to further research the current perceptions of Cadbury as a brand, and analyse the markets for varying products.

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Q3. If I were to put this assignment into a grade boundary, I would assume between 62 – 78%, to reflect the respective time and effort, as well as depth of consideration given.

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