Premium Essay

Cadbury

In: Business and Management

Submitted By akarthik1988
Words 1075
Pages 5
Branding Challenge:
Some of the branding challenges that were faced by Cadbury while launching their Premium Brand Silk are:
"When we started work on Silk, we trawled the marketing and socio-cultural worlds to understand how mainstream brands can give birth to strong sub-brands that hit above them. And there aren't too many such examples."
- Kawal Shoor, head of planning, Ogilvy India * How to create a sub-brand of CDM that sells at 11 times that of the CDM price.

"Silk, the way it has been positioned, has the ability to stand alone today, basically due to the very different product delivery it offers. While Silk is smooth and 'melty' CDM is hard and chunky. However, at the same time, CDM and its base equity remains."
- Brand consultant Harish Bijoor * A major challenge that such a sub-brand of an existing successful brand has to tackle is how not to alienate lovers of the base product, who have a palate memory that is as old as their childhood.

"CDM extended chocolate consumption to firstly, the adult segment, and secondly, to all the different occasions for which meetha (sweets) used to be consumed in the Indian context, in a sense "repositioning" chocolate in the mind of the consumer."
-Tanuka Ghoshal, assistant professor - marketing, ISB Hyderabad * With such a successful core brand, it is indeed a challenge to sufficiently differentiate an extension in the same category, price it at a premium point, and make it a success.
Defining Premiumness:
Premium refers to those products whose average price is Rs 100 and above. Quite a few chocolates fall in this segment, including brands such as Lindt, Ferrero, Godiva, Mars, Bournville, Toblerone, Temptation etc.
A 100 gm bar of Lindt, for instance, costs anywhere between Rs 195 and Rs 255. It will soon introduce smaller packs of 38 gm. This will be priced between Rs 90 and Rs 120. Toblerone's

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