Blending Innovation With Premium Positioning in Outdoor Advertising - Essay Example

? Ad Campaign Analysis: Cadbury BY YOU YOUR SCHOOL INFO HERE HERE Ad Campaign Analysis: Cadbury Introduction Cadbury has found considerable promotional success through advertising innovation that is founded on decades of positive, premium brand reputation. Since the 1980s, the company has positioned the Cadbury brand under premium positioning strategies, in which consumers experience integrated marketing communications that continue to reinforce the brand as top quality compared to other chocolate manufacturers. In 2011, Cadbury launched its “glass and a half full of joy” campaign, focusing more on tangible product benefits and quality than traditionalism linked with a long-standing brand with much brand equity. Instead, under the new campaign, Cadbury introduces relevant celebrity endorsers fitting the lifestyle and attitude characteristics of current target market consumers. Though not a vacation from Cadbury’s long-standing positioning on the market in terms of tangible product quality, it represents a modernisation and evolution of a brand, creating a brand personality that is both fun and sophisticated. Cadbury’s “glass and a half full of joy” campaign illustrates a new type of emotional connection with a variety of different target markets that is much less stoic and traditional. Campaign analysis Cadbury competes in a very saturated market with competitors such as Kraft Foods and Nestle, two competitors with very strong brand recognition and established brand equity. Both long-standing companies in this industry continue to produce top quality, moderately-priced chocolate products, however both positioning their brands differently depending on market characteristics, product concept, and profit expectations in certain target markets. Because competition is so intense, Cadbury cannot afford to alter its premium positioning that continues to justify a moderately higher price tag and has already established brand loyalty in various profitable markets. One difficulty even with a modernised and innovative product-focused campaign is determining how best to target advertising concept. Chocolate products are capable of being promoted to a mass market audience, consisting of all age demographics and consumer lifestyles. Chocolate is a univerally-adopted product with significant lifestyle-enhancing benefits and opportunities for mood enhancement. Cadbury must consider which markets are most viable and would be most loyal to a higher-priced, top quality product with quality ingredients. To accomplish this, the company must determine what segmentation strategies would be most effective for long-term profitability. Cadbury utilises behavioural segmentation, identifying three key markets: The break segment, the impulse segment, and the take-home segment (Cadbury Chocolatier 2012). Behavioural segmentation divides a market based on known behaviours toward the product brand (Bhasin 2011). The two main criteria for this segmentation include actual benefits sought from product (in this case top quality ingredients or mood enhancement opportunities) as well as established loyalty in important markets. This is a significant competitive advantage for Cadbury, capitalising on existing market loyalty when determining what communciations are most relevant and effective for brand-loyal consumers. Thus, though there are opportunities for Cadbury to appeal to mass market consumers, the majority of sales are generated from loyal consumers and those attracted to premium products. It would not be effective for Cadbury to assume a total mass market strategy as this would serve to somewhat cheapen the established reputation Cadbury has earned through years of aggressive competitive advertising. By focusing on quality and premiumisation, the brand continues to outperform major competitors in this industry. Under models of psychographic segmentation, the most ideological markets loyal to Cadbury are Believers and Innovators, two identified market segments best targeted through behavioural strategy. Believers, according to Mishra (2012), are motivated to consumption through ideologies. They are conservative, largely brand loyal, predictable in consumption behaviour, and often choose familiar products rather than defecting to other brands. This market provides a marketing advantage in the “glass and a half full of joy” campaign as it rests on traditional brand quality pre-established in the UK and internationally and also ideolises the premiumisation of Cadbury products. Innovators are generally higher-resource consumers, take-charge consumers with a great deal of self-esteem (Mishra 2012). This market has a preference for upscale products and make consumption decisions that will best reflect their personalities and level of social and professional sophistication (Mishra). This market provides ample profit opportunities for Cadbury as the quality positioning reinforces brand sophistication, a personality that is sincere, competent and sophisticated. An effective brand personality in markets with premium positioning must contain these characteristics to gain market loyalty (Aaker 1996). Figure 1: Blending innovation with premium positioning in outdoor advertising Source: Moeen, H. (2011). http://pakmediablog.net/3474/cadburys-fascinating-outdoor-campaign/ As illustrated by this billboard advertising concept in Figure 1, Cadbury does not deviate from illustrating premium ingredient benefits, adding a contemporary flair that is outrageous and eye-catching to gain market interest. The campaign illustrates that consumers can expect to receive an abundance of quality and health ingredients in much larger proportion than that of competitors in this industry, allowing consumers to be attracted to the company’s first-class product methodology. This feeds the market characteristics and needs of the Believer segment as well as the Innovators described by Mishra (2012) who are attracted to quality brands with a sophisticated brand personality. Most consumers are completely unaware that they are driven by motives (Blackwell et al. 2006). Because of this, it is difficult for consumer segments to make conscious connections between motivation to consume and inherent attitudes. Cadbury is able to use imagery of the actual chocolate experience, such as that illustrated in Figure 1, to create subconscious desires in consumers to seek Cadbury products. Cadbury is both informing and selling at the same time, creating an emotional connection with consumers and also informing of tangible quality efforts that will outperform competition in taste, texture and richness. This is clearly illustrated in the concrete visual representation of smooth and silky chocolate products. The Cadbury brand is not being sold for specific lifestyle situations, rather as an anytime break or opportunity for indulgence. By not focusing on specific usage, such as using communications about the appropriateness of Cadbury for a casual break, it does not limit Cadbury or create the perception in consumer markets that the brand is common or otherwise unexceptional. It is only when a brand is able to provide consumers with perceptions of self-expansion that strong attachments and loyalty will be developed (Muniz and O’Guinn 2001). Self-expansion can be defined, in this case, as any opportunity for a consumer to improve their personalities or lifestyles. Cadbury illustrates in advertising how this can be accomplished, utilising celebrities as an appropriate reference group that also continues to reiterate the premium benefits of Cadbury products. Figure 2: Use of celebrity to express elements of self-expansion for loyalty development Ross, S. (2011). http://shavarross.com/2011/05/31/noami-campbell-dont-call-me-chocolate/ Naomi Campbell was selected as a relevant, lifestyle-oriented celebrity endorser as a means of illustrating opportunities for important consumer self-expansion. In order for this to be effective, and in this case it absolutely is for Cadbury, use of celebrities must consist of three constructs: credibility, attractiveness and expertise (Pornpitakpan 2003; Ohanian 1990). Naomi Campbell maintains a positive reputation among innovator groups, those who seek premium products as an extension of their personality and sophistication. At the same time, the campaign to refresh the Cadbury brand and its many diverse products creates perceptions of sex appeal and/or sophistication associated with the Cadbury chocolate consumption experience. This provides emotional appeal between consumer and the Cadbury brand, whilst at the same time refreshing and modernising the Cadbury name to reflect an evolutionary brand that still remains true to its premium and quality values. The new ad campaign is designed to encompass many different branded products in the Cadbury line, whilst also expressing to consumers that no other competitor maintains the same level of premium focus. The main conception is that “Chocolate is Cadbury” (Cadbury 2012, p.1). This conception isolates Cadbury from non-premium chocolate competitors, creating the perception that no other company can match the flavour and quality of Cadbury brands. By suggesting that Cadbury is chocolate, it reflects expertise to consumer markets whilst also staying true to premium positioning to avoid cheapening the existing brand reputation. Brand loyalty is the best asset to allow a company to charge premium prices, as loyal customers provide valuable word-of-mouth endorsement (Chaudhuri and Holbrook 2001). In an industry where chocolate products can be easily replicated by competition, Cadbury successfully differentiates the brand through illustrations of rich and smooth chocolate as well as the consistent message of expectations for top quality ingredients. The brand personality and established brand equity are two intangible assets at Cadbury that are absolutely not easily replicated. Cadbury does not excellent job of staying true to its established reputation, making incremental branding adjustments to gain more contemporary market interest. Cadbury chocolate products are not high-involvement purchases in the decision-making products, with many sales occurring by impulsive consumers when Cadbury brands are displayed appropriately in a convenience merchandising format. However, the take-home segment is common purchasers of higher priced, larger-sized products, typically ranging between ?3.50 and ?5.99. Since Cadbury requires the purchase loyalty of three different markets, the brand cannot limit itself to attempting to elicit impulsive decision-making as it will sacrifice the more profitable, take-home market opportunities. Cadbury advertisements in this campaign include supplementary, in-store merchandising visuals to prompt both impulsive and take-home purchases which is an advantage of a total integrated marketing communications campaign. This is why the imagery illustrating the premium chocolate product does not visualize smaller-sized packaging common in the impulse, convenience section in-store, rather expressing an all-encompassing brand name that is relevant for take-home and impulse purchase decision-making. Internationally, Cadbury maintains the same positioning strategies, using relevant actors with sophisticated appeal to promote the quality of Cadbury products. Figure 3: International conception in current ad campaign Figure 3 illustrates a respected, attractive celebrity endorser from India, recruited to represent the Cadbury brand. Internationally, Cadbury does not adjust its established reputation to fit specific market characteristics found in other countries, relying instead on the notion of universiality in chocolate consumption and appreciation for quality ingredients. Staying true to the concept of Cadbury is Chocolate, the brand is able to differentiate effectively from international food competition. Illustrating a lifestyle-relevant actor such as that illustrated in Figure 3 continues to build more brand loyalty, reflecting a sophisticated consumer that would benefit from the social self-expansion opportunities provided by this particular brand personality that is sincere and highly sophisticated. Marketing mix analysis It was already established that much emphasis is placed on product in the marketing mix. Another feature that distinguishes the brand from competition is the removal of pricing from advertisement. Cadbury products are priced moderately higher than competing products, which can be a turn-off for price sensitive buyers in mass markets, which do contribute profitability to the business outside of the most desired target audiences. If Cadbury were to call market attention to pricing discrepencies between these premium products and lesser-quality competing products, it would create the motivation to expand the purchasing decision-making process; elongating it and conflicting opportunities for impulsive sales. Cadbury is using intelligent strategic thinking to remove pricing from the marketing mix, especially when incorporated into promotional materials, to ensure more market interest and not over-load consumers with mixed and conflicting integrated communications. The advertising in the “glass and a half full of joy” campaign does not illustrate any elements of distribution in place marketing. However, this is not a disadvantage or an oversight. Cadbury products are sold in a variety of retailers and in the online environment, thereby diversifying brand visibility in many different geographic markets. If Cadbury were to focus on place marketing, it would not only represent a very costly effort at developing multiple ad campaigns with mixed messages, but remove focus from quality that is a critical success dynamic for the Cadbury brand. Instead, quality-based promotions provide the most profitable foundation for advertising success in the format identified in this particular ad campaign being analysed. Cadbury does not rely on the brand reputation of existing retailers to assist in generating sales; it is a stand-alone brand with a great deal of market loyalty already established. To add retailer brands to the promotional mix to elicit more loyalty would likely be ineffective especially when target markets most desired by Cadbury are already predictable, brand loyal, and tend to believe promotional communications when they are perceived as stemming from a quality and reputable brand. By adding more dimensions to the ad campaign, such as place marketing focus, it would conflict the process of retaining loyalty which is a major strategic goal of Cadbury in a very mature market environment. By focusing on promotion and product in the marketing mix, Cadbury achieves a legitimate emotional connection with consumers. Lifestyle relevancy is reflected in celebrity endorsements when utilised appropriately in domestic and international markets, providing justification of the effectiveness of psychographics that can be witnessed in increased quarterly revenues and other quantitative consumption data gathered by Cadbury marketing teams. Product, in terms of quality positioning and sustaining competitive advantage, is the most viable and critical success dynamic in the brand’s marketing mix with the most potential to bring revenue achievements. Conclusion As illustrated by the actual advertising content in the “glass and a half full of joy” campaign, Cadbury does an excellent job of creating advertising content that meets the attitudes and quality expectations in desired target markets. Psychographic-based, behavioural segmentation has identified two distinct markets with the most likelihood to select Cadbury based on personal characteristics of sophistication, trust and predictable repurchasing frequency. This is supported not only by quantitative data, but through legitimate consumer sentiment and actual reporting of positive brand experiences. This lays the foundation for premium positioning that is advantageous to a brand that has been in the UK and abroad for decades. Cadbury does not have the burden, anymore, of attempting to build brand recognition in emerging markets, rather the business sustains the product/brand life cycles using effective positioning and modernisation tactics (such as the use of Naomi Campbell in promotion) to refresh a very long-standing brand personality. Cadbury should be considered an appropriate benchmark for understanding consumer markets and then developing subsequent promotional and merchandising conceptions that continue to meet with market approval. Staying true to heritage-based personality constructs and quality-centric communications are strategic successes in promotion and product focus for Cadbury that brings the business much brand equity and several loyal markets that appreciate the quality of this moderately-priced competitive product. By using behavioural segmentation philosophy and illustrating lifestyle-relevant communications and imagery, Cadbury clearly sets itself apart from market competition. In a highly saturated and mature market, Cadbury should be applauded for achieving significant market gains and reducing the purchasing decision-making model so that consumers will instinctively select Cadbury products rather than lesser-quality competition in this industry. Removal of pricing from promotional focus and illustrating a dynamic and top qualit product will continue to bring Cadbury increased market share and brand faithfulness from key profitable markets. Without maintaining relevant advertising that creates a positive emotional connection between consumer and brand, it is likely Cadbury would not be a market leader in this particular industry. References Aaker, D.A. (1996). Measuring brand equity across products and markets, California Management Review, 38(Spring), pp.102-120. Bhasin, H. (2011). Behavioral segmentation. [online] Available at: http://www.marketing91.com/behavioral-segmentation/ Blackwell, R.D., Miniard, P.W. and Engel, J.F. (2006). Consumer Behaviour. Mason: Thompson South-Western. Cadbury Chocolatier. (2012). Brand strategy – The production flow from cocoa to Cadbury Dairy Milk. [online] Available at: http://thecadburychocolatier.wordpress.com/cadburys-brand-strategy/ (accessed 21 November 2012). Cadbury. (2012). The new milk chocolate. [online] Available at: http://www.cadbury.com.au/About-Chocolate/Cadbury-Dairy-Milk.aspx (accessed 21 November 2012). Chaudhuri, A. and Holbrook, M. (2001). The chain of effects from brand trust and brand effect to brand performance: The role of brand loyalty, Journal of Marketing, 65(2), pp,81-93. Ohanian, R. (1990). Construction and validation of a scale to measure celebrity endorser’s perceived expertise, trustworthiness and attractiveness, Journal of Advertising, 19(3), pp.39-52. Pornpitakpan, C. (2003). Validation of the celebrity endorers’ credibility scale: evidence from Asians, Journal of Marketing Management, 19(2), pp.179-195. Muniz, A. and O’Guinn, T. (2001). Brand community, Journal of Consumer Research, 27(4), pp.412-431. Read More