Assignment task:
You have been appointed by Mondelez Australia (owner of Cadbury) to make recommendations that will bring Old Gold into the 21st Century and reposition the brand to create awareness and entice trial amongst the younger generation e.g., the millennials. According to research, the Old Gold brand received below category average brand equity measures (awareness 90% vs average 93%, Trial 58% vs average 75%, Buy Regularly 19% vs average 25%). Alarmingly, 1 in 3 people would not even consider buying Old Gold. Despite the revitalisation of the brand in 2020 e.g., new packaging and flavours, the Old Gold brand is still perceived as a chocolate block preference for people over the age of 55.
Cadbury Old Gold is a heritage Australian dark chocolate brand, established in 1916 (Cadbury, n.d.). Old Gold is a popular brand amongst the older generations with a limited appeal to those under 55 years of age. According to research, the Old Gold brand had below category average brand equity measures (awareness 90% vs average 93%, Trial 58% vs average 75%, Buy Regularly 19% vs average 25%). Alarmingly, 1 in 3 people would not even consider buying Old Gold (Design Business Association, 2020). Previously, poor brand perceptions (i.e., perceived as a dated brand consumed by the older generation) and a lack of marketing activity has left Old Gold exposed to new entrants and established companies developing new products to meet the diverse needs of the market. The dark chocolate segment has seen the growth of boutique crafted chocolates or specialist brands, along with a trend toward plant-based options.
Choice, a leading consumer advocacy group in Australia taste tested 37 different plain dark chocolate brands (excluding flavoured varieties) sold in major supermarket chains nationally in August 2020. The taste tests were 'blind' in that no brands were revealed. The initial taste tests measured aroma, texture and flavour (Choice, 2020). The second test assessed presentation based on appearance. The packaging was removed but any branding (logos or names) on the actual chocolate remained e.g., Cadbury. The evaluation of each of the thirty-seven (37) chocolates used the following scores: ? Taste = 90% (marked out of 100) (35% flavour, 35% texture, 5% aroma and 25% appearance) ? Nutrition = 10% (based on the Health Star Rating) Choice recommends products with a rating of 70% or higher (Choice, 2020). Of the 37 brands, only eleven (11) dark chocolate brands were recommended. The Old Gold brand rated 29th out of 37.
Product Strategy and Differentiation
Q1. Using the data provided in the case study and your knowledge of marketing fundamentals, develop three (3) product strategies Cadbury could implement to ensure the Old Gold brand is more appealing to the younger generation. In your answer, you must clearly state the strategy, how it is implemented and your justification for the choice of strategy.
Q2. Based on your answer to question 2a, develop two (2) differentiation strategies for the repositioning* of the Old Gold brand. Justify how Old Gold can potentially differentiate themselves in the Australian market using any of the five (5) bases of differentiation. Draw a positioning/perceptual map depicting the positioning of the Old Gold brand. You are permitted to hand draw the diagram and upload the photograph to the answer sheet as an image.