Brand AuditDetailed brand audit on Cadbury Dairy Milk

Submitted By: Avinash Hegde Shruti Kapoor

Group No: 8 (014) (024) (051) (107) (112)

Priyadarsh Sharma Michelle Chandy Saanya Nangia

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Table of ContentsAbstract ........................................................................................................................................................ 3 Introduction .................................................................................................................................................. 5 Brand history: ............................................................................................................................................ 5 Branding elements: ................................................................................................................................... 6 Brand portfolio: ......................................................................................................................................... 7 Brand positioning: ..................................................................................................................................... 8 Communication strategy ........................................................................................................................... 9 Distribution strategy: .............................................................................................................................. 14 Pricing strategy: ....................................................................................................................................... 14 Competitor Analysis ................................................................................................................................... 15 POP AND POD: ......................................................................................................................................... 17 Brand Exploratory ...................................................................................................................................... 17 Customer - Brand Knowledge Structure: ................................................................................................ 18 CBBE pyramid: ......................................................................................................................................... 19 Research Methodology: .......................................................................................................................... 20 Questionnaire Analysis: ........................................................................................................................... 20 Sources of Brand Equity: ......................................................................................................................... 24 Brand strategies ......................................................................................................................................... 24 Based on external environment: ............................................................................................................. 24 Segmentation, targeting, positioning:..................................................................................................... 27 SWOT analysis: ........................................................................................................................................ 30 Results: ....................................................................................................................................................... 32 Recommendations: .................................................................................................................................... 33 Conclusion: ................................................................................................................................................. 34 Appendix..................................................................................................................................................... 41

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AbstractThe journey of Cadbury Dairy Milk started way back in the year 1905 from Bournville, UK but it came to the Indian market in 1948. From the time it was introduced in India, Dairy Milk has been the market leader in the confectionery segment commanding a 30% market share and average daily sales of 1 million bars. The reason that our group chose Cadbury dairy milk for the brand audit is that it provides us with ample scope to study the various aspects of branding like communication strategies, innovative ad campaigns, establishing an emotional connect with consumers, brand repositioning, rebranding etc. Well be studying the evolution of Cadbury dairy Milk by concentrating on the following aspects: How dairy milk redefined the chocolate segment from being seen as meant for kids to a thing to be enjoyed by everyone in moments of joy and celebration by targeting the adult segment. Dairy Milk has always tried to keep a strong association with milk, with slogans such as "a glass and a half of full cream milk in every half pound" and advertisements that feature a glass of milk pouring out and forming the bar. Its use of innovative and interesting ad campaigns to make chocolate eating a habit among the consumers, especially the adults. Some of the famous ads being: o The Real Taste of Life girl dancing on the cricket field o Khanewalon ko Khane ka bahaana chahiye, which said that chocolates are consumed not only when someone is happy, but under diverse conditions and moods - when people are anxious, when they are sad, when happy - a whole range of emotions. o Kuch Meetha ho Jaaye - Pappu paas ho gaya, which contacted 20 MN students across the country and was awarded a Bronze Lion at the Cannes Media awards in 2005. o Aaj Pehli tareekh hai, which conveys that with these recessionary times, pay day sure is a time for celebration!!!3

The worm-infestation controversy in the year 2003 and how Dairy Milk bounced back from it by introducing new, better packaging as a tool to communicate quality. The recent acquisition of Cadbury by Kraft Foods and its implications. Having gone through many changes over the years, we have chosen this brand to study its transition, various brand strategies, the level of brand recall among consumers, the brand perception and image in their minds and its customer based brand equity in the market. This will help us gauge Cadburys Dairy Milks brand position in the market vis--vis competitors.

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Introduction

Brand history: OWNERSHIP: In 1824 a young Quaker, John Cadbury, opened a shop at 93 Bull shop in a fashionable part of Birmingham. This one-man business, trading mainly tea and coffee, was to be the foundation of Cadbury limited- ' THE FIRST NAME IN CHOCOLATE', today one of the world's largest producers of chocolate. For over 100 years Cadbury was essentially a family business and although non-family directors were appointed for the first time in1943, the company retained many features of a family business until 1962 to form Cadbury Schweppes plc. Cadbury Limited is the confectionary division of this international company. In 1847 the enterprise had prospered to a large factory in Bridge Street, Birmingham. John Cadbury took his brother Benjamin into partnership and the family business became Cadbury Brothers Birmingham. The business moved to Bournville after outgrowing the Bridge Street factory, the work force had risen to 200 after 32years at Bridge Street. Following the two brothers death in 1899, the business became a private limited, by 1899 the business ad almost trebled in size, employing over 2,600 employees. Due to the formation of the private limited company, Bournville entered an era of scientific management, introducing new ideas analytical laboratories, advertising and cost offices, a sales department, works committee, medical department, pension funds, education and training for employees. After WW1, there was a rapid change in industrial technology, the Bournville factory was rebuilt and equipped for mass production and the luxury of chocolate became well within the financial reach of the majority of the population. Several factors led to reduction of process for chocolate- raw materials cost, processing efficiency and lower transport costs. In 1919 Cadburys Brothers merged with J S Fry & sons of Bristol whose product range complemented that of Cadbury. Due to this, Cadburys expanded more, a factory in Bournville and now in Somerdale near Bristol.5

Branding elements: The Dairy Milk brand has been meticulously built around the world by Cadbury and it has been able to sustain a strong position in the market, thanks to a strong product (in the form of quality milk chocolate) backed by a clear and consistent branding effect. The core branding elements which have been associated with Dairy milk are discussed below one by one. Colors In India and across the world, a chocolate wrapped in purple & gold packaging can be none other than Cadbury Dairy Milk. Insignia The Glass and Half of fresh liquid milk is the most recognizable graphic associated with Dairy Milk brand. The latest packaging also introduces a slight splash at the end of the falling milk flow. The reasons for using and retaining this graphic design over the years are as follows: One reason is to graphically depict the functional characteristic of Dairy Milk chocolates Each pound of Dairy Milk chocolates contains one and a half glass of fresh dairy milk. The other benefits are built over this and are related to the common association of health and purity with milk. The glass and half represent not only health but also good constituents which go into the making of this chocolate. Finally these stand for the brand promise of Dairy Milk which is that of quality product through pure and healthy ingredients. The newly introduced splash tries to make the entire image more vibrant as well as give a more refreshing look to the entire package. In all new Dairy Milk packages, the graphics have been modified so that now the milk from the two glasses ends in a piece of Dairy Milk chocolate. The reason for this modification is just to make the points discussed above more obvious to the customer (who now has far more choices than before). Cadbury Dairy Milk The Cadbury logo comes at top of the package followed by the Dairy Milk text in a bold vintage Dairy font usually on a white colored strip. The latest packaging tries to give more prominence to the Cadbury logo while maintaining the other branding elements like color, insignia etc.6

Packaging The colors and insignia discussed above constitute the packaging of Dairy Milk which now comes in a tamper proof pack. Finally certain observations associated with the latest Cadbury Dairy Milk packaging are mentioned below The Cadbury logo now has swirls representing Milk Goodness cues The Cadbury logo is more prominent than ever so as to depict a stamp of quality along with the Dairy Milk brand. Theres prominent endorsement of the Dairy Milk brand across all variants. This is done by retaining the Purple color scheme and glass and half insignia. The variants are differentiated by color coding (Red in this case) resulting in product differentiation and maximum impact. In all, the new package has a more contemporary, functional as well as vibrant look!

Brand portfolio: WORLDWIDE: In June 1905, Cadbury's launched its first Dairy Milk bar, with a higher proportion of milk than previous chocolate bars, and it became the company's best selling product by 1913. Fruit and Nut was introduced as part of the Dairy Milk line in 1928, soon followed by Whole Nut in 1933. In 2003 Cadbury made Dairy Milk into a family brand by taking existing brands Caramel, Wispa, Fruit & Nut, and Whole Nut and marketing them as Dairy Milk subbrands. The Dairy Milk brand was also introduced as an endorsement brand on children's products such as Cadbury Buttons and Freddo. By 2006 there were fifteen Dairy Milk sub-brands produced in the UK, including Shortcake Biscuit, Wafer, Orange Chips, Mint Chips, Crispies, and Crme Egg. In the subsequent two years, however, the majority of these new sub-brands proved unsuccessful and were discontinued. In 2008 "Apricot Crumble Crunch" and "Cranberry and Granola" were released as new Dairy Milk variants.

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INDIAN MARKET: The Dairy Milk brand alone accounts for approximately 33% of Cadbury's total chocolate blocks (moulded) and bars sales, making it the number one confectionery brand in the market. The continued success of the Dairy Milk brand is testament to the quality of its brand management. The Dairy Milk sub-brands available in India are: Cadbury Dairy Milk Cadbury Dairy Milk Crackle Cadbury Dairy Milk Roasted Almond Cadbury Dairy Milk Fruit and Nut Cadbury Dairy Milk Shots Cadbury Dairy Milk Silk Cadbury Dairy Milk Wowie

Brand positioning: The Brand Positioning of Cadbury Dairy Milk in Mid 90s was that chocolate is not for only kids but also for adults. Immediately they released the very popular Real Taste of Life' campaign, shifting the focus from `just for kids' to the `kid in all of us'.. The company mainly target the young people by showing this romantic advertisement campaign. The company also released various range of dairy milk chocolates in stylist packets.

Demographic: Age and Life Cycle: Buyers who mostly prefer Cadburys Dairy Milk come under the agegroup of 4-50 years. Cadbury dairy milk is not affected by the generation differences. All types of peoples like to purchase the Cadbury dairy milk when they want to buy it.

Gender: Gender doesnt matter. Cadbury Dairy Milk are for all types of persons whethermale or female.8

Income: The price of Cadbury dairy milk is reasonable and affordable. So a person doesnot need to think much before purchasing it. They can easily buy it any time when they want to buy. The income of a person does not play an important role in it except for Silk.

Behavioral: Decision Roles: The decision role is played by the childrens and youngsters.They play an important role in taking the decision of when to buy the Cadbury Dairy Milk.

Occasions: For purchasing the Cadbury Dairy Milk no special occasions are required.People can easily purchase it on regular basis also if they need it. Also occasions such as Diwali, Rakshabandhan has witnessed increase in sales of dairy milk. User Status: There are mainly the regular users found in the user status of Cadbury Dairy Milk.

Usage Rate: The user rate is heavy in the behavioral segmentation of Cadbury dairy milk. Buyer-Readiness: There is mainly the intending to buy type of readiness status. Loyalty Status: There is mainly the absolute loyalty status. Attitude: There is an enthusiastic type of attitude of the buyers.The strategy to target adults was taken further with the help of a brand new positioning Kuch Meetha Ho Jaye. Since Indians focus tremendously on occasions and sweets become an integral part of it, this was the thinking adopted which was a success and continues to be a theme across the various below mentioned campaigns.

Communication strategy

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70% of market share held by Cadburys alone in chocolate industry till 2002 (Out of which 30% is hold by Dairy milk alone). It has maintained this by constantly re-inventing the brand and bombarding communication towards the consumer consistently to maintain top of mind recall in the confectionery segment. Dairy Milk has emerged as the No.1 most trusted brand in Mumbai for the 2005 edition of Brand Equity's Most Trusted Brands survey. Real Taste of Life Campaign Promotion in the early 90's, chocolates were seen as 'meant for kids. In the Mid 90's the category was re-defined by the very popular `Real Taste of Life' campaign, shifting the focus from `just for kids' to the `kid in all of us'. It appealed to the child in every adult. And Cadbury Dairy Milk became the perfect expression of 'spontaneity' and 'shared good feelings'. The 'Real Taste of Life' campaign which people still fondly remember was that of a girl dancing on the cricket field which remained etched in everyone's memory, as the most spontaneous & un-inhibited expression of happiness. This campaign went on to be awarded 'The Campaign of the Century', in India at the Abby (Ad Club, Mumbai) awards.

Khanewalon Ko Khane Ka Bahana Chahiye Campaign In the late 90's, to further expand the category, the focus shifted towards widening chocolate consumption amongst the masses, through the 'Khanewalon Ko Khane Ka Bahana Chahiye' campaign. This campaign built social acceptance for chocolate consumption amongst adults, by showcasing collective and shared moments

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The Controversy: Cadbury's chocolate bars tainted with salmonella may have poisoned up to 40 people. Insects found in dairy milk bar. As a result the company lost market share (69% to 53%) and this turned out to be a blessing for competitors like Nestl, Amul and other local players. Cadbury Dairy made efforts pro-actively to win back the trust of consumers. Cadbury Dairy milk improved the packaging and paid more attention to the way its chocolates were stored by nearly 650,000 retailers across the country. In the after-month of the controversy, the company launched Project Vishwas, a retail education Programme under which 190,000 retailers in key states were covered. The Programme entailed generating awareness and providing assistance in improving storage quality.

Pappu Pass Ho Gaya & Miss Palampur Campaign: Here, the campaign associated Cadbury Dairy Milk with celebratory occasions and the phrase "Pappu Pass Ho Gaya" became part of street language help to hold the market share by segmenting the kids as well as Younger people despite the bitter moments, hoping that the future will be much sweeter. Similar thoughts went into the Miss Palampur campaign aligned to Pappu wherein Dairy Milk becomes a part of the big celebrations in life even with strangers. Wowie Launch: Cadbury launched 'Cadbury Daily Milk Wowie' with Disney characters, which was a chocolate delight with Disney characters Mickey, Pluto, Goofy and Donald. It was targeted at the 8-13 year old consumers and is priced at Rs 10 per pack of 22 grams Launch of Dairy Milk Silk: Cadbury India recently launched Cadbury Dairy Milk Silk, its premium offering under the Cadbury Dairy Milk brand. The company aims to position Silk as 'smoother, creamier and chunkier. Cadbury India went all out to promote the new variant and rolled out a TV-led 360 degree integrated communication campaign including outdoor, print and Internet. O&M is the creative agency on the account.

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Product Attributes: Silk has been specially formulated to cater to Indian consumers' craving for smoother, creamier and finer chocolate available internationally and many perceive Cadbury Dairy Added it's about blissfully losing yourself in the smoothness of the chocolate. Normally, indulgence is peddled in a sinful way but this campaign takes an innocent look at it, which makes it refreshing. The challenge was to launch a new brand which had its unique product attributes, yet doesnt deviate from Cadbury Dairy Milk's values. Another challenge was that in India people don't eat chocolate outside their homes because chocolates melt and create a rather messy affair. But molten chocolate is really extremely tasty and molten Silk is something to die for. Now that's a perfect setting for turning a weakness into strength. Fact is, habits dont change after a few commercials. Yet, this framework became the perfect platform to extol the virtues of this fine chocolate within the boundaries set by Cadbury Dairy Milk.

Payday Campaign PayDay campaign was a rather narrow interpretation of the occasion based positioning; Cadbury India unveiled a new campaign that continued with the brand's 'Kucch Meetha Ho Jaye' positioning. The campaign revolved around the theme of 'Pay Day', which is associated with happiness by most people. This new campaign takes the concept of celebrations to yet another level. The commercial kept the core promise of happiness while introducing another 'moment of joy' in ones life. The TVC highlights the celebratory occasion of pay day, which is an important event in the life of every middleclass-Indian." We realised that while celebrations have been done for various occasions, the celebration for pay day was not done. Pay day emotes feelings that are naturally celebratory in nature. Pay day makes you feel as rich as a king or as rich as a crorepati. Cadbury automatically lends itself to the celebrations.This is the moment that CDM captures in the new CDM campaign.The 50s' Kishore Kumar song that brings the pay day story idea together beautifully.The commercial, depicts the many things that typically happen on payday, Shubh Aarambh Campaign (meaning Auspicious Beginning)12

Cadbury's Dairy Milk has recently launched this campaign which is the refined version of the earlier Payday campaign which evoked mixed response from the Ad analysts and consumers. The Shubh Aarambh campaign reinforces the occasion based positioning of Dairy Milk. The brand has been trying to position itself as a symbol of enjoyment and celebrations. Indians have the tradition of sharing sweets on auspicious occasions and also when one initiates a venture/activity. Whether the activity is small like writing an exam or huge like starting a company, sharing of sweets is an integral part of the event. The belief is that good things happen when one starts a venture on a positive note (like sharing sweets). Dairy Milk very cleverly captured this tradition and incorporated into its brand story. The new campaign takes the brand to the center of this tradition linking Dairy Milk to Sweet and Auspicious Beginnings. Shubh Aarambh has given the brand a broad playing ground. In my opinion, the brand has hit upon a really great Big Idea. The concept is very much Indian and offers huge opportunity for creatives to weave great stories for the brand. The concept also gels with the brand's tagline "Kuch Meetha Ho Jaye". The launch campaign is targeted at younger generation and hence the brand added a little humor and twist into the campaign. Shubh Aarambh is a great idea for this great brand. It will be interesting to see how Dairy Milk milks this idea to the fullest. Media Mix & Promotions: The media mix for the campaign generally comprises TV, outdoor, Internet and radio. As it has become a trademark with Cadbury Dairy Milk, the TV commercial is supported by a 360 campaign to intensify the engagement with the consumers through radio, print, on-ground (multiplexes and malls), mobile and online. Promotion integrated communication strategy where a mix of mass & consumer contact activities help build on the brand. Cadburys Dairy Milk has over the years, gone all out with Mobile2win for their first-ever wireless activity in India. The idea was to not only bring in interactivity via SMS promotion with the desired target group of kids and teens in India, but also reach out to a large number of people in the most cost-effective manner. In addition they have special on ground promotions at Food Malls especially in Chennai, Bangalore and Hyderabad as well as at Big Bazaar and Food Bazaars, Inorbit Mall in Mumbai.

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One innovative tie -up with Reliance webworld was executed, wherein students across 66 examination boards across the company could access their results on Rworld through their Reliance mobiles. If these students passed a message congratulating them on their moment of delight, Dairy Milk was displayed on the message. Other pull activities have been executed simultaneously linked to the TVC's broadcast on various networks like SMS viral campaigns following the TVC and contest/sweepstakes gratifying winners with Sony Play stations, T-shirts and 1000 VCDs.

Distribution strategy: Cadbury Dairy Milks journey with chocolate lovers in India began in 1948. Today, Cadbury Dairy Milk alone holds 30% value share of chocolate market 50% of molded chocolate segment. One of the largest chocolate brands in the country

Indian market & specifically urban areas where the penetration of chocolates is increasing, brings a need for efficiency in logistics & distribution. There is stiff competition in the confectionery market due to large exposure of foreign currency rate risk, mainly on account of import of cocoa beans, cocoa butter. Cadbury Dairy Milk is easily available anywhere when we need it. Still, the supply chain of Cadbury Dairy Milk is very good. Also it is quality conscious. So the two main types of benefits given by Cadbury Dairy Milk are supply and quality.

Pricing strategy: Since Dairy Milk is positioned towards a very large audience from ages 4 50 years, the pricing strategy is extremely affordable and easily accessible to all categories. Hence prices range from Rs.5 to a Maximum of Rs.20 in different sizes. The only exception being Silk (its newest variant) which is a premium offering and is thus priced at Rs.50.

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COMPETITOR ANALYSIS

COMPANY Kraft Foods Lindt & Sprngli Nestle Ferrero Mars

FOUNDED IN 1903 1845 1860s 1940s 1911

BRAND PORTFOLIO (confectionery products) Cadbury Dairy Milk and variants, Trident Gum, clairs, Milka,Toblerone Lindt Classic, Lindt Excellence,Lindor Kit Kat, Smarties, Wonka Rocher, Raffaello, Kinder, Tic Tac, Mon Cheri, Nutella Bounty, Galaxy, Mars, Snickers, Milky Way,15

Amul Hersheys Candico Perfetti Van Melle ITC Parle

Wrigleys, M&Ms etc 1945 Milk chocolate, Fruit & Nut chocolate 1894 Hersheys milk chocolate, Kisses, Pot of gold, Milk duds, Reeses, Icebreakers etc 1997 Loco poco gum, Elaichi roll, clairs, Big bubble etc 2001, when Perfetti Alpenliebe, Chlormint, Centerfresh, and Van melle Happydent, Mentos merged 2002(confectionery Minto and Candyman segment) 1929 Melody, mango bite, poppins, kismi toffee, mazelo, xhale, clair, golgappa, parle lites, orange candy

In the Indian context, the main players in the confectionery industry are Cadbury (Kraft Foods), Nestle, Candico, Perfetti Van Melle, ITC, Parle and Godrej Hershey

1) Candico

Brand portfolio It has 3 broad categories: Gums( 8 varieties), Toffees(6 varieties) and Candies (6 varieties) Notable marketing campaign- Minto, the all mint,no hole , which positioned itself against Nestles Polo (Minto was acquired by ITC in 2002)

2) Perfetti Van Melle India

Brand portfolio- Mentos, Fruitella, Alpenliebe, Chocoliebe, Happydent, Big Babol, Chlormint, Center Fresh Notable marketing campaign- Happydent City lighting up campaign3) ITC

Brand portfolio- Minto and Candyman Notable marketing campaign- www.mycandymanclub.com, a website with games, quizzes, downloads and other fun activities targeted at young children4) Godrej Hershey (joint venture between The Hershey Company and Godrej Group

in 2007)16

Brand portfolio- Maha Lacto and Choco and Nutrine (12 variants) Notable marketing campaign- Dhoni is the brand ambassador5) Nestle India

Brand portfolio- Kit kat, Munch, Milky bar, Bar one, Polo, Eclairs Notable marketing campaign Rani mukherjee is the brand ambassador for Munch6) Parle

Brand Portfolio- Melody, mango bite, poppins, kismi toffee, mazelo, xhale, clair, golgappa, parle lites, orange candy Notable marketing campaign- Mango bite kache aam ka copy POP AND POD: POD: POP: Goodwill/ emotional connect with Indian consumers Almost generic name in the Indian chocolate segment Campaigns are directed at kids as much as at adults Excellent distribution system, in India specifically 2 layer packaging

Good quality product Chocolate manufacturing legacy Variants such as dark chocolate, fruit and nut etc. Constant innovation in marketing campaigns

BRAND EXPLORATORY17

Customer - Brand Knowledge Structure: Cadbury Dairy Milk has been trying to get out of the image of Just another Chocolate and become something special in the minds of the customer. They have also been trying to position themselves as chocolates for all age groups and not just kids. The results of the survey shows that more than half of the sample thinks that Cadbury Dairy Milk is more than just a chocolate for them and its a means of celebration. Results also indicate that most of the people think of Cadbury Dairy Milk as something for all age groups and not just kids.

Image: Means of Celebration Performance: Tasty Safe to eat People: For all age groups

Cadbury Dairy MilkSo, based on the results obtained, the mental mapping of Cadbury Dairy Milk would look something like this in the minds of the customer!18

CBBE pyramid:

High Brand Loyalty, high no. of repeat purchases

High quality packaging, reasonably priced

Well trusted brand, good gifting option

Supreme taste and quality

All age groups, celebrations, special occasions, history

Very High Awareness:

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Cadburys Dairy Milk has not only built a strong level of awareness but it has been supported on all levels of the Pyramid. It is known for its brand performance for its superior and unique taste for an Indian chocolate. The recognizable quality of its taste is well complemented by the imagery the brand stands for. Post the worm incident; packaging was high priority for the brand. This was introduced by

Research Methodology: In order to gauge the brand recall, brand perception vis--vis competition and the consumption patterns, the methodology that was used for research was that of a questionnaire with a sample size of 100 incumbents of all age groups. Cadburys Dairy Milk isnt positioned towards any particular demographic segment, being a low involvement purchase in the confectionery segment.

Questionnaire Analysis: 1. BRAND RECALL

Brand Recall82% 54% 52% 22% 20%

Cadbury

Nestle

Amul

Lindt

Hershey

Out of the 150 respondents, 82% mentioned Cadbury as one of the 5 chocolate brands they remembered at that point of time, 54 % mentioned Nestle, 52% mentioned Amul, 22% mentioned Lindt and 20% mentioned 20%. So Cadbury enjoys the highest brand20

recall. Some other brands were also recalled by customers , such as snickers, toblerone etc but they had poor recall value. Only the top 5 brands have been analysed.

2. CONSUMPTION PATTERN a)

Consumption Frequency0% 23% 19% More than once a day Once a day Once a week Once a month

58%

None of the respondents consumed Cadburys Dairy Milk more than once a day, 19% consumed it once a day, 58% consumed it once a week and 34% consumed it once a month.

b)

Reason for Consumption99% 41% 19% 18% Want to celebrate Don't know,just pick it up

Whenever Whenever sad happy

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19% of the respondents consumed it when they were happy, 18% consumed it when they were sad, 41% consumed it when celebrating something and 99% had no particular reason. Many respondents chose more than one occasion.

3. BRAND PERCEPTION a)

Brand Perception57% 41%

2% means to celebrate just another chocolate other

41 % perceive it as a means to celebrate while 57% perceive it as just another chocolate. b)

Brand Perception vis a vis competition42% 41% 17% 0% excellent good average bad 0% worst

The majority of the respondents thought that as compared to competition, Cadburys Dairy Milk is either excellent or good in quality. None thought it was bad or the worst which reflects well on the brand equity.

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c)

Important Attributes50% 35% 29% 33%

Taste

Price

Packaging

Availability

While the attributes - Taste, Price, Packaging and Availability were ranked in order of importance from 1 (lowest) to 5 (highest) by each respondent, on the whole considering the highest valued attributes, availability was the most highly values, then was taste, followed by packaging and finally price. This indicates that such products are usually close substitutes so unavailability of one leads to purchase of another without much regard to taste or brand loyalty.

d)

Trust56% 44%

Completely

Partially

56% trust the brand completely; while 44% trust it partially, which speaks in favour of the brand and its equity.

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Sources of Brand Equity: The main sources of Brand Equity are Brand Awareness and Brand Image. Basis the research, Cadburys Dairy Milk not only enjoys high levels of Brand Awareness but Unaided Brand Recall. This level of recall is generated when Dairy Milk enjoys the Top of the Mind effect. The brand image of Cadburys Dairy Milk plays an important role in building the Brand Equity of Dairy Milk through the medium if unique brand associations. These associations based on the Brand Perception segment in the analysis, are favourable as consumers relate to it as a chocolate for every occasion/ celebration. Right from the Kuch Meetha Ho Jaaye campaign to the recent Shubh Aarambh, Cadburys Dairy Milk has managed to create strong, unique, favourable brand associations in the minds of the consumers which is commendable. To assist its brand recall and brand image are strong supports that Dairy Milk receives from the robust distribution system (availability) and memorable packaging which only adds to the brand associations for Dairy Milk and help build its brand equity. Majority even trust this brand completely, despite the baggage the brand has carried for the worm controversy. This product has built such a brand image that it has attracted the consumers so they will not like to switch over to other brands especially since they are competitively priced which aids consumer preference even more. Other sources of Brand Equity for Dairy Milk are: 1. Emotional Connect 2. Consumers taste and preferences

BRAND STRATEGIESBased on external environment:24

The marketing strategy that a business uses must reflect the objectives of the business as a whole. These strategies must therefore be consistent with the wider corporate objectives of the organisation. However marketing strategies are not always secondary to corporate objectives. Strategies are likely to be influenced by the attitudes of decision-makers towards matters such as the desirability of risk and change. Such attitudes are influenced not only by the environment within which a business operates but also by the views of managers and directors and the culture of the business itself. EXTERNAL INFLUENCES: External influences can range from the consumers, to the press right up to the health and safety laws. These external factors can affect everything Cadburys do with advertisement, design products, and the selling of the finished products.

PEST ANALYSIS: The PEST analysis will examine the external environment and the global factors that may affect Dairy Milks business. It can provide a quick and visual representation of the external pressures facing the business, and their possible constraints on strategy.

POLITICAL: There are many political developments Cadburys will have to look at when producing the final marketing strategy, both regionally, and nationally and also internationally. For instance Cadburys will have to look at the Weights and Measures Act which makes it compulsory for the product to have on the labelling of the package a roundabout weight of the final product. This is an international Law which all businesses have to adhere to. Regional factors can come from just environmental acts, where their factories are built and whether it is built on an environmentally stable area. Also will the government increase financial support to such a large company if rising costs do occur?

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ECONOMIC: The marketing strategy will have to involve economic factors and their effect on the business. Consumer activity can change throughout seasons in the year, their spending patterns and willingness to spend can all depend on interest rates, and this will affect the strategy by having prices rising and falling and income monthly being vary. Does a new product have the need to come on the market? Economic variables can change the way a customer needs apply. For instance due to inflation, prices will go up for raw materials and production but customers wont want prices to increase in the final product. The company will need to make a balanced price in case inflation does increase by a lot to stop there being a loss. Unemployment levels can also affect a company, if the company is situated in a low unemployment level area then it would be harder to find people willing to work the areas of Cadburys Company but if unemployment levels are high then there may not be a need for more staff.

SOCIAL: If there is a social change taking place outside Cadbury then it might affect the way a strategy may be run or even designed, for example if there was a fall in birth rate and the life expectancy increased, then people will be living longer and this will then cause a larger demand on confectionary for the elderly and middle aged consumers rather than the younger population. But if there was an increase in birth rates and a decrease in life expectancy then there would be a greater demand for confectionary within the younger population. People dieting will also cause a big problem. Statistics in the last few years have shown that obesity has increased; this therefore means that the demand for chocolate will have fallen as more people will want a healthier option rather than a chocolate bar. Due to fashion and taste people change their minds every month to want the rich and the famous eat and wear. Although chocolate is not directly involved, it will still affect the choice people make on which brand consumers will buy. Adverts and promotions can also affect the way people spend their money, if there is a famous actress on a Cadburys advert then people are more likely to want to buy that product if they think someone the admire is consuming it.26

TECHNOLOGICAL: From the early days of Cadburys, technology has changed dramatically. It has become quicker and more efficient to this day. Production lines have been swopped for machines which can produce the whole product in one quick easy procedure. From this if extra demand is wanted from consumers then it will be easier to produce the product quicker than the original handmade chocolates. Communication has improved as well as marketing the product through word of mouth has now changed to advertising in magazines, newspapers, bill boards, television and even the internet. This will help with the strategy as it will be easier to promote the product to the consumers.

Segmentation, targeting, positioning: SEGMENTATION: Geographic Segment: For CDM, there is first of all the Geographic Segment that plays the largest role for its consumers. Being a traditionally mass product, the product reaches across the entire nation having a wide distribution in the market having manufacturing facilities and sales offices located pan India in all the 4 zones in a strong way. CDM has further classified itself into: Impulse Segment: (Khaanewalon ko khaane ka bahana chahiye), this is the segment that is targeted very strongly by CDM for the consumers who would consume the chocolate based on pure impulse as it is after all an impulse, low involvement product. Gift Segment: Purchased to gift someone (occasion based) TARGETING: The prospective customers of Cadburys Dairy Milk have changed from Kids to Adults including every family member to celebrate any occasion with Dairy Milk.

POSITIONING:27

Positioned nationwide as the perfect expression of love family, friends, etc. Across the various campaigns CDM is positioned as a spontaneous brand that is carefree, for special as well as real moments in life. There is no over the top exaggeration but the positioning has always been to connect with consumer on a personal yet relatable level. In fact Cadburys is synonymous worldover with chocolates and hence the marketing program always focuses on the positioning in order to be a part of the consumers regular consumption at any given point in time to include as many occasions as possible.

Marketing mix:Cadburys has still consistently emerged as one of the top 5 most trusted brands in the Brand Equity completion hosted by ET. This only goes to prove that Cadburys is like no other in the confectionery segment and has created a distinct mark for itself in this category in the FMCG sector. Below are the strategies that could further enhance the equity of the brand and help it gain leverage for its various offerings.

PRODUCT Cadbury Dairy Milk is a chocolate made out of cocoa, cocoa butter, powered or condensed milk, sugar and flavouring. A 49g bar of Dairy milk has 1080 KJ of energy, 3.7 g of protein, 27.9g of carbohydrate, 14.6g of total fat, .3g of fibre, traces of sodium and 255 calories. First manufactured in 1905 at Bournville, U.K. , it became available in India in 1948. Cadbury Dairy Milk has several variants - Fruit & Nut, Crackle, Roast Almond, Cadbury Dairy Milk Desserts, Cadbury Chunky, Cadbury Dairy Milk Wowie and Cadbury Dairy Milk 2 in 1. It comes in various sizes and targets children, adults and the elderly as well. Benefits:a) Cocoa contains high levels of naturally occurring compounds called flavanols and a range of other polyphenols that have been shown to reduce blood pressure helping to improve heart health. b) Contains many vitamins including B1, B2, and E as well as minerals including potassium, sodium, magnesium, phosphorus, zinc, copper, manganese and by far28

the most important, calcium, providing over 15% of the recommended daily requirement in a 49g bar of Cadbury's Dairy Milk. c) Theobromine and phenylethylamine, as well as the caffeine in chocolate may increase alertness and mental performance. d) Eating chocolate triggers the release of endorphins, mood enhancing chemicals produced by the brain. These produce feelings of pleasure. Recommendations: Cadbury should seriously consider focussing on the energy/ health bar segment for the Indian market. It should also innovate to cater to the calorie conscious.

PLACE: Availability is a crucial aspect to Cadburys success and according to the survey, it rates higher than almost all other brands on this parameter. CDMs are sold directly to wholesalers and Retailers over a distribution network that encompasses over 2100 distributors and 450,000 retailers and hence availability is evidently the strongest find in the consumer perception findings in the research. The majority of the respondents said they buy dairy milk from grocery stores. Cadbury is known for its distribution system and should continue focussing on grocery stores, supermarkets, pan wallahs and canteens of schools and colleges. Recommendations: From the small pan wallahs to the big supermarkets, easy availability and frequent restocking are important so that the consumer doesnt end up consuming a rival brands product for lack of availability. Attractive displays at the payment counter will induce impulse buying. In store visibility and easy access are also important, especially to entice children. PRICE: Based on the questionnaire research findings, it has been noted that Cadburys Dairy Milk consumption for 58% of consumers i.e. majority of them consume it once a week, which seems to be pretty healthy for the chocolate category, given the positioning of the brand (auspicious beginnings/occasions). The brand is perceived as an above average chocolate in terms of quality taste, etc and is not perceived as a chocolate only for occasions but the consumption patterns and brand perception indicate it is considered a chocolate for any time of the day or week.29

Had pricing of the chocolate been an issue, the brand wouldnt have been received so well by the consumers. Dairy Milk has always had different SKUs at different price points, which has been its strength. To corroborate the consumer comfort with pricing, one of the research question findings further indicates that availability, taste and packaging score higher on the consumers list of important attributes and priorities rather than pricing. The availability aspect has already been taken care of in the Place segment. This concludes that Cadburys Dairy Milk pricing strategies in the chocolate segment are received well by the target audience. There is however, the issue of Dairy Milk Silks pricing to be considered. Cadburys Dairy Milk Silk is a premium offering and hence is priced at that level (a niche audience) but in order to increase the consumption of the brand Silk in the future, the pricing of the chocolate could be brought down from a Rs.50 to Rs. 35-42 (range) PROMOTION: The current promotions strategy for Cadburys Dairy Milk products are restricted to aggressive campaigns for Silk, the Dairy Milk Shubh Aarambh and clairs. The other offerings for the variants under the Cadburys Dairy Milk brand are Crackle, Fruit & Nut, Wowie, Desserts and Temptations. Almost 80% of chocolate purchases are made on impulse, hence the media mix for the campaigns comprise of TV, Outdoor, Internet & Radio with more concentrated focus on television advertising with the use of emotional appeals. During the 90s, the campaigns reflected the widening of chocolate consumption among the target audience which not only includes children. CDM has successfully transitioned from being a kids chocolate brand to a mass consumer product. Then came the various occasions like Kuch Meetha ho Jaaye, Pappu Pass ho Gaya, Miss Palampur, Pay Day and Shubh Aarambh all in an effort to increase usage which has worked well for the brand and generates brand recall as well. SWOT analysis:

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Strengths Weaknesses Dairy Milk is owned by Cadbury which 1. The recent acquisition of Cadbury by is a globally established brand name Kraft Foods Inc. may result in Dairy known for its manufacturing Milk getting side-lined as a brand. competency and leadership in 2. Apart from India, the brand has innovation. traditionally been strong in Europe. Cadbury Dairy Milk has been able to Lack of experience in tackling emerging establish a clear & consistent Brand markets is a major weakness of Cadbury Image over the years through quality & this also shows in the brand Dairy product offerings, careful yet innovative Milk. product additions to the brand as well 3. The price point of Dairy Milk products as a well crafted communication deters it from generating significant campaign. sales in certain segments which find the Dairy Milk commands a great reach to prices too high. Such segments are consumers through an extensive already been tapped by companies like distribution network spanning across Amul (Amul Milk chocolate). India. Dairy Milk has also been able to create clear connections of its brand elements with it over the years. One may safely say that Brand Elements associated with Cadbury Dairy Milk occupy a unique position in customers mind. The presence of Dairy Milk in form of multiple variants (Crackle, Silk, Shots etc) ensures that the brand is present across all related product categories. Dairy Milk also enjoys a great recall value (inferred from the Brand Survey) when comes to milk chocolates. This recall value is not just limited to kids but also to people belonging to middle aged groups, proving that this chocolate is not just seen as a product offering for kids.

Threats 1. Increasing competition from international front is one of the biggest threats to Cadbury Dairy Milk. 2. The highly price sensitive nature of the

Opportunities 1. Sugar Free category is a major opportunity for Cadbury Dairy Milk. 2. The Dairy Milk brand may also try innovating in taste by introducing more31

industry is also a threat for the Dairy Milk brand. 3. Rapid innovation and introduction of several snacks in the market (Kurkure, Hippo etc) also increases the consumer propensity to switch. This is a threat to Cadbury Dairy Milk.

international flavors.

RESULTS: The following are the key findings of the research that was undertaken: Cadbury Dairy Milk is the flagship brand of Cadbury India Ltd. and is synonymous with the word chocolate in India with a very high brand recall and high number of repeat purchases which indicates high brand loyalty. Cadbury Dairy Milk has a very good brand image among the consumers with majority of respondents finding it either excellent or good in quality as compared to competition. None thought it was bad or the worst which reflects well on the brand equity.32

Dairy Milk also enjoys very favourable brand associations with majority of the respondents associating it with supreme quality and flavour. Even the packing is considered to be of very high quality. Dairy Milk has positioned itself as an item for all occasions and to be enjoyed by all irrespective of their age. It is aiming to replace traditional gifting options like mithais and dry fruits.

RECOMMENDATIONS: Cadbury should seriously consider focussing on the energy/ health bar segment for the Indian market. It should also innovate to cater to the calorie conscious. From the small pan wallahs to the big supermarkets, easy availability and frequent restocking are important so that the consumer doesnt end up consuming a rival brands product for lack of availability. Attractive displays at the payment counter will induce impulse buying. They can also consider coming up with their exclusive Chocolate Boutiques. In store visibility and easy access are also important, especially to entice children. In terms of communication, while the campaigns have generated recall, CDM focuses on few of the Dairy Milk offerings as mentioned above. Perhaps the change in strategy could be to have a separate campaign that highlights all the Dairy Milk brands as a combined offering from CDM in the market. This is generally done during festivals but should be done throughout the year highlighting brands like Crackle & Fruit & Nut which are of superior quality and a higher pricing point. For the current festival season, other than having the large family packs for the consumers, CDM should introduce promo offers of loose CDM individual chocolates with their other Cadburys brands like Silk to increase purchase of the premium brand and push the other less expensive brands in the same basket. This also is a time to promote the other products in the CDM/or even the Cadburys segment alone towards the consumer in the celebration packs at reasonable price points. This will do for the section of the Target Group which finds Cadburys Celebrations and Temptations expensive for purchase. For festivals like Christmas Dairy milk can introduce special chocolates like rum and champagne flavoured chocolates.

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CONCLUSION: The confectionery market in India is huge with immense scope for the chocolate industry. The Indian chocolate industry is a unique mix with extreme consumption patterns, attitudes, beliefs, income level and spending. Understanding consumer preferences and needs is the key to growth in this industry. Economic distribution using proper supply chain is necessary and so is maintaining a high brand loyalty. Cadbury dairy milk scores on all these accounts and therefore has maintained its position as the market leader since the time it was introduced in the Indian market.

AppendixQUESTIONNAIRE: BRAND TRACKINGDear Sir/Mam We are second year students of K.J. SIMSR, Mumbai and are conducting this survey as a part of our Brand Management curriculum. We shall be grateful if you could spare 10 minutes of your valuable time to fill this questionnaire. Your answers and views would be kept strictly confidential and would be collectively analyzed along with other responses in the survey. We thank you in advance for your cooperation. 1) Name the top 5 brands of chocolates you can think of: 2) Have you tried any of the Cadbury Dairy Milk chocolates? a. Yes b. No

3) If yes, what sub-brands of Cadbury Dairy Milk have you tried? a. b. c. d. e. f. g. Cadbury Dairy Milk Cadbury Dairy Milk Crackle Cadbury Dairy Milk Roasted Almond Cadbury Dairy Milk Fruit and Nut Cadbury Dairy Milk Shots Cadbury Dairy Milk Silk Cadbury Dairy Milk Wowie

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4) What is your frequency of consumption of Cadbury Dairy Milk? a. b. c. d. e. Once a day More than once a day Once a week More than once a week Less than once a week

5) When do you have Cadbury Dairy Milk: a. b. c. d. Whenever I feel happy. Whenever I feel sad. Whenever I want to celebrate. Just pick up.

6) What do you think of Cadbury Dairy Milk? a. Means to celebrate. b. Just another chocolate. c. Other:_________________________

7) Which Ad of Cadbury Dairy Milk do you remember? a. b. c. d. e. Meeta hai khana, aaj pehli tareekh hai Shubh Aarambh Khanewalon Ko Khane Ka Bahana Chahiye Campaign Real Taste of Life Campaign Pappu Pass Ho Gaya & Miss Palampur Campaign

8) What do you think of Cadbury Dairy Milk products in comparison to its competitors? a. b. c. d. e. Excellent Good Average Bad Worst

9) You perceive Cadbury Dairy Milk as a chocolate for the age group? 35

a. b. c. d.

Less than 10 10-15yrs 16-30yrs Any age

10) How do you rate Cadbury Dairy Milk on the following parameters? (1 Lowest; 5 highest) a. b. c. d. Taste Price Packaging Availability

11) Do you trust Cadbury Dairy Milk brand: a. Completely b. Partially c. No 12) Will you stop buying Cadbury Dairy Milk, if similar brand appears in the market? a. No, not at all b. I may consider c. Cant say

13) Rate the following on the basis of the characteristics mentioned: (scale of 1-5) Taste, Price, Packaging, Availability a. b. c. d. e. Nestles Milky Bar Nestles KitKat Mars Bar Amul Milk Chocolate Toblerone

14) Generally, where do you buy Cadbury Dairy milk from? a. b. c. d. Grocery store Supermarket Canteen Others 36

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