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BRAND AUDIT OF CADBURY DAIRY MILK




                                 Submitted To:

                             Dr. Bhavesh Vanparia



Submitted By:

Group 1:

Sonia Dadlani (10022)

Leena Chellani (11015)

Pallavi Vats (10116)

Chandan Pahelwani (11047)

Nikunj Gajara (11046)

Atirek Sharma (11074)

Neeraj Parihar (11052)

Yashwant Vaishnav (11093)


Tolani Institute of Management Studies              Page 1
TABLE OF CONTENTS



    Chapter                              Title                Page No.
       No.
        1.      Objectives, Scope & Approach of Brand Audit      4
        2.      Brand History of Cadbury Dairy Milk              6
        3.      Introduction to Confectionary Industry           8
        4.      Consumer Analysis                                9
        5.      Brand Inventory
                5.1 Brand Elements, POP & POD, Marketing        11
                Programs
                5.2 Branding Strategies                         16
                5.3 Brand Portfolio                             18
                5.4 Competitor‟s brand inventory                19
        6.      Brand Exploratory
                6.1 Customer Knowledge, Sources of Brand        20
                Equity, Mental map
                6.2 Brand Positioning                           24
        7.      Summary of Competitor Analysis                  25
        8.      SWOT Analysis                                   26
        9.      Brand Equity Evaluation                         28
       10.      Recommendations & Conclusion                    35
                Appendix (Questionnaire)                        36




Tolani Institute of Management Studies                               Page 2
ABSTRACT

The journey of Cadbury started way back in the year 1905 from Bourneville, UK.
But it came to Indian market in 1948. From the time it was introduced in India,
Dairy Milk has been the market leader in the confectionery segment. It has
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, and Emotional Connect
with Consumers, Brand Repositioning, and Rebranding etc.



We will study the evolution of Cadbury Dairy Milk by focusing on following
Aspects:


                Redefining of chocolate segment


        Its journey from "meant for kids” to “meant
                       for everyone”


                Its all time association with Milk



           Its innovative & interesting Ad campaigns



Tolani Institute of Management Studies                                    Page 3
CHAPTER 1

                      OBJECTIVES OF BRAND AUDIT




         To analyze the strength of Cadbury in
                the chocolate segment.



         To understand different branding and
           marketing aspects of Dairy Milk



        To have an detail analyses of customer’s
              loyalty towards Dairy Milk




Tolani Institute of Management Studies             Page 4
SCOPE & APPROACH OF BRAND AUDIT



Scope & approach of Brand Audit of Cadbury Dairy Milk is to understand:




                                            Communication
                                              Strategies

                                             Innovative Ad
                                               Campaigns

                                         Emotional Connect with
                                               Customers

                                           Brand Positioning




Tolani Institute of Management Studies                             Page 5
CHAPTER 2

                               BRAND HISTORY



In 1824, John Cadbury opened a shop in Birmingham. This one-man business,
trading mainly in Tea & Coffee was to be the foundation of Cadbury Limited. For
over 100 years Cadbury was a family business. In 1943 non family directors were
appointed. 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 Bourneville after outgrowing the Bridge Street Factory.
The Workforce had risen up to 200 after 32 years at Bridge Street. After the death
of two brothers in 1899, the company was privatized. It entered the era of scientific
management; it introduced new ideas for their department like:




     Analytical              Advertisement &
                                                       Sales Department
    Laboratories               Cost Offices



                                                          Education &
                                 Medical
 Works Committee                                          Training for
                                Department
                                                           employees




Tolani Institute of Management Studies                                        Page 6
On 2nd February, 2010 Kraft Foods took over 71% shares of Cadbury. They
acquired it totally. But still Cadbury was on top in the market. This acquisition did
not changed people‟s mind and their craze for Cadbury Dairy Milk.



                                   OPERATIONS

Cadbury‟s operations are carried out in many countries. Few of them are:




                                                United Kingdom

                                                      Canada

                                                      Ireland

                                                  United States

                                                     Australia

                                                  New Zealand

                                                       India




Tolani Institute of Management Studies                                        Page 7
CHAPTER 3

           INTRODUCTION TO CONFECTIONARY INDUSTRY



   • Sugar confectionery (candies and toffees) has the largest share (50%),
      followed by chocolate, (16%), and bubble gum, (10%).

   • The chocolate segment is the fastest growing in value terms (9.8% average
      annual growth rate)

   • Cadbury India, Ltd. is by far the market leader, followed by Perfetti Van
      Melle India, Ltd. and Nestle India, Ltd.

   • The confectionary industry contains the following products:




  Chocolates                                                   Lollipops




 Hard Candies                    Chewing
                                                            Bubble Gums
                                  Gums



     Toffees                                                 Mint Toffees


Tolani Institute of Management Studies                                        Page 8
CHAPTER 4

                           CONSUMER ANALYSIS



Market Segmentation:

Demographic:

Age and Life Cycle: Buyers who mostly prefer Cadbury‟s Dairy Milk come under
the age group 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 doesn‟t matter. Cadbury Dairy Milk is for all types of persons
whether male or female.

Income: The price of Cadbury dairy milk is reasonable and affordable. So a person
does not 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 children and youngsters. They
play an important role in taking the decision of when to buy the Cadbury Dairy
Milk.




Tolani Institute of Management Studies                                    Page 9
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.
Attitude: There is an enthusiastic type of attitude of the buyers.




Tolani Institute of Management Studies                                     Page 10
CHAPTER 5

                            BRAND INVENTORY



BRAND ELEMENTS:



Brand Name                   Cadbury



                            Amitabh
Brand Ambassador
                            Bachchan


                           Kuch Meetha
Jingle
                             Ho Jaye




Logo                   `




Tolani Institute of Management Studies        Page 11
Dairy Milk has been meticulously built around the world by Cadbury. It has been
able to sustain a strong position in the market. There are many branding elements
which have resulted into consistent result of its success. Few more Branding
Elements are as given below:


             • In India and across the world, the only choclate wrapped in Purple with
               the logo of Cadbury written on it.
   Color     • All other products of Cadbury like Gems which is also so colorful.



             • Packaging which introduces slight of milk splash shows the relation of
               milk with Cadbury.
  Insignia



             • Logo which comes on the packaging in bold vintage Dairy font in white
               which also shows the relatio of milk with the product.
   Logo




MARKETING PROGRAMS OVER THE YEARS

70% of market share is held by Cadbury alone in chocolate industry till 2002 (Out
of which 30% is held 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. Here are some of the Innovative
Ad campaigns of Cadbury Dairy Milk:



Tolani Institute of Management Studies                                                  Page 12
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.



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.
Tolani Institute of Management Studies                                            Page 13
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
one‟s life. Cadbury highlights the celebratory occasion of pay day, which is an
important    event    in    the    life   of    every    middle     class   Indian.




Shubh Aarambh Campaign (meaning Auspicious Beginning)

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.

Tolani Institute of Management Studies                                      Page 14
POP AND POD:



POD:

       Goodwill/ emotional connect with Indian consumers
       Generic name in the Indian chocolate segment
       Campaigns are directed at kids as much as at adults
       Excellent distribution system, in India specifically
       3 layer packaging


POP:

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




Tolani Institute of Management Studies                        Page 15
BRANDING STRATEGIES


Distribution strategy:



Cadbury Dairy Milk‟s 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. 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.




Tolani Institute of Management Studies                                     Page 16
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.




Tolani Institute of Management Studies                              Page 17
BRAND PORTFOLIO



The Dairy Milk Brand alone accounts for approximately 30% of total Cadbury‟s
sales. It has made Cadbury the number one confectionery brand in the market.
Currently in India, Dairy Milk has many sub-brands under its name. They are;




                  COMPETITOR’S BRAND INVENTORY



   1) Perfetti Van Melle India



Tolani Institute of Management Studies                                   Page 18
Brand    portfolio-   Mentos,    Fruitella,   Alpenliebe,   Chocoliebe,
              Happydent, Big Babol, Chlormint, Center Fresh
              Notable marketing campaign- Happydent “City lighting up” campaign



   2) 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 children



   3) Nestle India

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



   4) Parle

              Brand Portfolio- Melody, mango bite, poppins, kismi toffee, mazelo,
              xhale, éclair, golgappa, parle lites, orange candy
              Notable marketing campaign- Mango bite “kache aam ka copy”




Tolani Institute of Management Studies                                       Page 19
CHAPTER 6

                           BRAND EXPLORATORY

Customer Knowledge

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 people. They have
also been trying to position themselves as chocolates for all age groups and not just
kids. The campaign has successfully created a picture in the mind of the customers
that Cadbury is not just a chocolate but means of celebrations.




Sources of Brand Equity:



                                         Brand
                                         Image



        Emotional                                                  Consumer’s
                                                                    Taste and
         Connect
                                                                   Preference



                                         Brand
                                     Awareness




Tolani Institute of Management Studies                                       Page 20
The main sources of Brand Equity are Brand Awareness and Brand Image.

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. 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. Consumer‟s taste and preferences


Tolani Institute of Management Studies                                       Page 21
Brand Ambassadors

As we know that previously Dairy Milk was only considered as Chocolate, but
their new campaign has changed this perception of consumers. As discussed above
now Dairy Milk is considered as Traditional sweet of Indian culture(Mithai) which
people give to their near and dear ones on the occasions and now they use Dairy
Milk as sweet(Mithai). Brand Ambassador chosen for Dairy Milk is none other
than Megastar Amitabh Bacchhan. He endorsed the brand so successfully that
everyone loved the brand much more than they did. The endorsement has
successfully captured the Indian festivals like Rakshabandhan, Diwali, Wedding,
Birthdays etc. Now people give Dairy Milk as token of love, care and affection to
their friends and family.




Tolani Institute of Management Studies                                   Page 22
Mental Map


                                     Image:
                                    Means of
                                   Celebration

      Performance:
          Tasty
                                                      People:
       Consistent
                                                 For all age groups
         Quality
        Healthy



                                 Cadbury Dairy
                                     Milk




Tolani Institute of Management Studies                         Page 23
BRAND POSITIONING

Cadbury Dairy Milk positioned nationwide as the perfect expression of love –
family, friends, etc. Across the various campaigns Cadbury Dairy Milk 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. In fact Cadbury 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.



Cadbury Dairy Milk has smartly positioned itself keeping in mind all 4 P’s of
marketing:
   • Product
   • Price
   • Place
   • Promotion



Constituents of Brand positioning of Cadbury Dairy Milk:

    Means of celebration
    Consistent taste
    Consistent quality
    Healthy
    Sharing happiness with the dear ones
    Occasional product


Tolani Institute of Management Studies                                     Page 24
CHAPTER 7

                 SUMMARY OF COMPETITOR ANALYSIS




  COMPANY                  FOUNDED IN             BRAND
                                                PORTFOLIO
                                              (confectionery
                                                products)
   Nestle                      1860s              Kit Kat,
                                                Smarties,
                                                  Wonka
  Ferrero                      1940s             Rocher,
                                                Raffaello,
                                              Kinder, Tic Tac,
                                                Mon Cheri,
                                                 Nutella
     Mars                         1911           Bounty,
                                              Galaxy, Mars,
                                              Snickers, Milky
                                              Way, Wrigley’s,
                                                M&M’s etc
     Amul                        1945              Milk
                                               chocolate,
                                                Fruit & Nut


Tolani Institute of Management Studies                       Page 25
chocolate
 Hershey’s                       1894     Hershey’s milk
                                           chocolate,
                                          Kisses, Pot of
                                            gold, Milk
                                          duds, Reese’s,
                                           Icebreakers
                                               etc
   Perfetti         2001, when Perfetti    Alpenliebe,
 Van Melle               and Van melle      Chlormint,
                              merged      Centerfresh,
                                            Happydent,
                                             Mentos
      ITC          2002(confectionery       Minto and
                            segment)        Candyman
    Parle                        1929     Melody, mango
                                          bite, poppins,
                                           kismi toffee,
                                          mazelo, xhale,
                                              éclair,
                                            golgappa,
                                           parle lites,
                                          orange candy




Tolani Institute of Management Studies                  Page 26
Tolani Institute of Management Studies   Page 27
Chapter 8

                                    SWOT ANALYSIS

              Strength                                Weakness
    Dairy milk        is    owned    by     Certain segment feel that price
      Cadbury which is a globally              of Dairy Milk is high and
      established brand name known             compared to that Amul Milk
      for     its       manufacturing          chocolate is preferred.
      competency and leadership in
      innovation.
    Dairy Milk has been able to             Dairy       Milk    is   somewhat
      establish a clear and consistent         lacking in other emerging
      Brand Image over the years.              markets.      It    has    strong
                                               command over its brand image
                                               in India and Europe But other
                                               places it is lacking.
    It offers quality product with
      innovations with innovative
      communication campaign
    Dairy Milk has huge command                            -
      over its distribution network
      spanning across India.
    Dairy Milk also enjoys a great                         -
      Brand   Recall        value   when
      comes    to   chocolates       with
      Milk.


Tolani Institute of Management Studies                                        Page 28
Threats                               Opportunities
    Increasing       competition     from     To introduce sugar free category is
      international   brands   is   biggest      biggest opportunity for Dairy Milk.
      threat to Dairy Milk
    Highly price sensitive nature of the      Dairy Milk can innovate more by
      industry.                                  bringing international flavors so
                                                 that is also gets an opportunity to
                                                 compete with this threat as well.




Tolani Institute of Management Studies                                               Page 29
CHAPTER 9

                      BRAND EQUITY EVALUATION



CBBE pyramid:


                                 High Brand Loyalty,
                                 high no. of repeat
                                 purchases



     High quality
                                                       Well trusted
     packaging,
                                                       brand, good
     reasonably
                                                       gifting option
     priced


    Supreme taste                                      All age groups,
    and quality                                         celebrations,
                                                            special
                                                         occasions,
                                                            history



                                Very High Awareness:




Tolani Institute of Management Studies                           Page 30
BRAND MANTRA OF DAIRY MILK




                        Adding Sweetness to your life




Tolani Institute of Management Studies                  Page 31
Data Analysis

1) Aware of Cadbury?




2) Source of awareness?




Tolani Institute of Management Studies   Page 32
3) Which Cadbury chocolate do you purchase the most?




                                 Consumption
                                                       Dairy milk (56%)

                                                       5 Star (18%)

                                                       Gems (8%)

                                                       Perk (6%)



4) Other than Cadbury?




Tolani Institute of Management Studies                                Page 33
5) Which pack size?




6) How frequently do you purchase Cadbury chocolates?




Tolani Institute of Management Studies                  Page 34
7) Availability?




8) Which of the factors affect your purchase?




Tolani Institute of Management Studies          Page 35
9) Impulse purchase?




10) Will you stop buying Cadbury, if new brand appears in Market?


                                     Response




                                                               No, not at all (60%)
                                                               I may consider (24%)
                                                               Cant's say (16%)




Tolani Institute of Management Studies                                        Page 36
CHAPTER 10



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.
      Attractive displays at the payment counter will induce impulse buying. They
      can also consider coming up with their exclusive „Chocolate Boutiques’.
      For festivals like Christmas Dairy milk can introduce special chocolates like
      rum and champagne flavoured chocolates.



CONCLUSION

Cadbury Dairy Milk even though a foreign brand, has wonderfully understood the
Indian Chocolate Industry as a unique mix with extreme consumption patterns,
attitudes, beliefs, income level and spending of the money. Understanding
consumer preferences and need 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 has scored on all these parameters and therefore
has maintained its position on Global Market as No 1 Chocolate




Tolani Institute of Management Studies                                      Page 37
Appendix

Questionnaire

   1) Are you aware of Cadbury?
   a. Yes
   b. No



   2) What is the source of awareness?
   a. Ads
   b. Word of Mouth
   c. Saw in shops



   3) Which Cadbury chocolate do you purchase the most?
   a. Dairy Milk
   b. 5-star
   c. Gems
   d. Perk
   e. Bournville
   f. Dairy milk Silk
   g. Temptations
   h. Celebrations




Tolani Institute of Management Studies                    Page 38
4) Other than Cadbury which brands are you aware of?
   a. Nestle
   b. International Brands
   c. Home-Made
   d. AMUL



   5) Which Pack Size do you purchase?
   a. Medium
   b. Small
   c. Family Pack



   6) How frequently do you purchase Cadbury chocolates?
   a. Weekly
   b. Daily
   c. Monthly
   d. Once in a fortnight



   7) Are Cadbury chocolates easily available?
   a. Very Much
   b. Quite
   c. Hardly




Tolani Institute of Management Studies                     Page 39
8) Which of the factors affect your purchase?
   a. Ads
   b. Attractive Display
   c. Occasion
   d. Suggestion from friends
   e. Brand Ambassadors
   f. Ingredients



   9) Impulse Purchase?

   a. Yes

   b. No



   10)       Will you stop buying Cadbury Dairy Milk, if similar brand appears in
      the market?
   a. No, not at all
   b. I may consider
   c. Can‟t say




Tolani Institute of Management Studies                                    Page 40

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Brand Audit of Cadbury

  • 1. BRAND AUDIT OF CADBURY DAIRY MILK Submitted To: Dr. Bhavesh Vanparia Submitted By: Group 1: Sonia Dadlani (10022) Leena Chellani (11015) Pallavi Vats (10116) Chandan Pahelwani (11047) Nikunj Gajara (11046) Atirek Sharma (11074) Neeraj Parihar (11052) Yashwant Vaishnav (11093) Tolani Institute of Management Studies Page 1
  • 2. TABLE OF CONTENTS Chapter Title Page No. No. 1. Objectives, Scope & Approach of Brand Audit 4 2. Brand History of Cadbury Dairy Milk 6 3. Introduction to Confectionary Industry 8 4. Consumer Analysis 9 5. Brand Inventory 5.1 Brand Elements, POP & POD, Marketing 11 Programs 5.2 Branding Strategies 16 5.3 Brand Portfolio 18 5.4 Competitor‟s brand inventory 19 6. Brand Exploratory 6.1 Customer Knowledge, Sources of Brand 20 Equity, Mental map 6.2 Brand Positioning 24 7. Summary of Competitor Analysis 25 8. SWOT Analysis 26 9. Brand Equity Evaluation 28 10. Recommendations & Conclusion 35 Appendix (Questionnaire) 36 Tolani Institute of Management Studies Page 2
  • 3. ABSTRACT The journey of Cadbury started way back in the year 1905 from Bourneville, UK. But it came to Indian market in 1948. From the time it was introduced in India, Dairy Milk has been the market leader in the confectionery segment. It has 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, and Emotional Connect with Consumers, Brand Repositioning, and Rebranding etc. We will study the evolution of Cadbury Dairy Milk by focusing on following Aspects: Redefining of chocolate segment Its journey from "meant for kids” to “meant for everyone” Its all time association with Milk Its innovative & interesting Ad campaigns Tolani Institute of Management Studies Page 3
  • 4. CHAPTER 1 OBJECTIVES OF BRAND AUDIT To analyze the strength of Cadbury in the chocolate segment. To understand different branding and marketing aspects of Dairy Milk To have an detail analyses of customer’s loyalty towards Dairy Milk Tolani Institute of Management Studies Page 4
  • 5. SCOPE & APPROACH OF BRAND AUDIT Scope & approach of Brand Audit of Cadbury Dairy Milk is to understand: Communication Strategies Innovative Ad Campaigns Emotional Connect with Customers Brand Positioning Tolani Institute of Management Studies Page 5
  • 6. CHAPTER 2 BRAND HISTORY In 1824, John Cadbury opened a shop in Birmingham. This one-man business, trading mainly in Tea & Coffee was to be the foundation of Cadbury Limited. For over 100 years Cadbury was a family business. In 1943 non family directors were appointed. 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 Bourneville after outgrowing the Bridge Street Factory. The Workforce had risen up to 200 after 32 years at Bridge Street. After the death of two brothers in 1899, the company was privatized. It entered the era of scientific management; it introduced new ideas for their department like: Analytical Advertisement & Sales Department Laboratories Cost Offices Education & Medical Works Committee Training for Department employees Tolani Institute of Management Studies Page 6
  • 7. On 2nd February, 2010 Kraft Foods took over 71% shares of Cadbury. They acquired it totally. But still Cadbury was on top in the market. This acquisition did not changed people‟s mind and their craze for Cadbury Dairy Milk. OPERATIONS Cadbury‟s operations are carried out in many countries. Few of them are: United Kingdom Canada Ireland United States Australia New Zealand India Tolani Institute of Management Studies Page 7
  • 8. CHAPTER 3 INTRODUCTION TO CONFECTIONARY INDUSTRY • Sugar confectionery (candies and toffees) has the largest share (50%), followed by chocolate, (16%), and bubble gum, (10%). • The chocolate segment is the fastest growing in value terms (9.8% average annual growth rate) • Cadbury India, Ltd. is by far the market leader, followed by Perfetti Van Melle India, Ltd. and Nestle India, Ltd. • The confectionary industry contains the following products: Chocolates Lollipops Hard Candies Chewing Bubble Gums Gums Toffees Mint Toffees Tolani Institute of Management Studies Page 8
  • 9. CHAPTER 4 CONSUMER ANALYSIS Market Segmentation: Demographic: Age and Life Cycle: Buyers who mostly prefer Cadbury‟s Dairy Milk come under the age group 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 doesn‟t matter. Cadbury Dairy Milk is for all types of persons whether male or female. Income: The price of Cadbury dairy milk is reasonable and affordable. So a person does not 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 children and youngsters. They play an important role in taking the decision of when to buy the Cadbury Dairy Milk. Tolani Institute of Management Studies Page 9
  • 10. 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. Attitude: There is an enthusiastic type of attitude of the buyers. Tolani Institute of Management Studies Page 10
  • 11. CHAPTER 5 BRAND INVENTORY BRAND ELEMENTS: Brand Name Cadbury Amitabh Brand Ambassador Bachchan Kuch Meetha Jingle Ho Jaye Logo ` Tolani Institute of Management Studies Page 11
  • 12. Dairy Milk has been meticulously built around the world by Cadbury. It has been able to sustain a strong position in the market. There are many branding elements which have resulted into consistent result of its success. Few more Branding Elements are as given below: • In India and across the world, the only choclate wrapped in Purple with the logo of Cadbury written on it. Color • All other products of Cadbury like Gems which is also so colorful. • Packaging which introduces slight of milk splash shows the relation of milk with Cadbury. Insignia • Logo which comes on the packaging in bold vintage Dairy font in white which also shows the relatio of milk with the product. Logo MARKETING PROGRAMS OVER THE YEARS 70% of market share is held by Cadbury alone in chocolate industry till 2002 (Out of which 30% is held 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. Here are some of the Innovative Ad campaigns of Cadbury Dairy Milk: Tolani Institute of Management Studies Page 12
  • 13. 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. 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. Tolani Institute of Management Studies Page 13
  • 14. 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 one‟s life. Cadbury highlights the celebratory occasion of pay day, which is an important event in the life of every middle class Indian. Shubh Aarambh Campaign (meaning Auspicious Beginning) 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. Tolani Institute of Management Studies Page 14
  • 15. POP AND POD: POD: Goodwill/ emotional connect with Indian consumers Generic name in the Indian chocolate segment Campaigns are directed at kids as much as at adults Excellent distribution system, in India specifically 3 layer packaging POP: Good quality product Chocolate manufacturing legacy Variants such as dark chocolate, fruit and nut etc. Constant innovation in marketing campaigns Tolani Institute of Management Studies Page 15
  • 16. BRANDING STRATEGIES Distribution strategy: Cadbury Dairy Milk‟s 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. 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. Tolani Institute of Management Studies Page 16
  • 17. 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. Tolani Institute of Management Studies Page 17
  • 18. BRAND PORTFOLIO The Dairy Milk Brand alone accounts for approximately 30% of total Cadbury‟s sales. It has made Cadbury the number one confectionery brand in the market. Currently in India, Dairy Milk has many sub-brands under its name. They are; COMPETITOR’S BRAND INVENTORY 1) Perfetti Van Melle India Tolani Institute of Management Studies Page 18
  • 19. Brand portfolio- Mentos, Fruitella, Alpenliebe, Chocoliebe, Happydent, Big Babol, Chlormint, Center Fresh Notable marketing campaign- Happydent “City lighting up” campaign 2) 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 children 3) Nestle India Brand portfolio- Kit kat, Munch, Milky bar, Bar one, Polo, Eclairs Notable marketing campaign – Rani mukherjee is the brand ambassador for Munch. 4) Parle Brand Portfolio- Melody, mango bite, poppins, kismi toffee, mazelo, xhale, éclair, golgappa, parle lites, orange candy Notable marketing campaign- Mango bite “kache aam ka copy” Tolani Institute of Management Studies Page 19
  • 20. CHAPTER 6 BRAND EXPLORATORY Customer Knowledge 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 people. They have also been trying to position themselves as chocolates for all age groups and not just kids. The campaign has successfully created a picture in the mind of the customers that Cadbury is not just a chocolate but means of celebrations. Sources of Brand Equity: Brand Image Emotional Consumer’s Taste and Connect Preference Brand Awareness Tolani Institute of Management Studies Page 20
  • 21. The main sources of Brand Equity are Brand Awareness and Brand Image. 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. 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. Consumer‟s taste and preferences Tolani Institute of Management Studies Page 21
  • 22. Brand Ambassadors As we know that previously Dairy Milk was only considered as Chocolate, but their new campaign has changed this perception of consumers. As discussed above now Dairy Milk is considered as Traditional sweet of Indian culture(Mithai) which people give to their near and dear ones on the occasions and now they use Dairy Milk as sweet(Mithai). Brand Ambassador chosen for Dairy Milk is none other than Megastar Amitabh Bacchhan. He endorsed the brand so successfully that everyone loved the brand much more than they did. The endorsement has successfully captured the Indian festivals like Rakshabandhan, Diwali, Wedding, Birthdays etc. Now people give Dairy Milk as token of love, care and affection to their friends and family. Tolani Institute of Management Studies Page 22
  • 23. Mental Map Image: Means of Celebration Performance: Tasty People: Consistent For all age groups Quality Healthy Cadbury Dairy Milk Tolani Institute of Management Studies Page 23
  • 24. BRAND POSITIONING Cadbury Dairy Milk positioned nationwide as the perfect expression of love – family, friends, etc. Across the various campaigns Cadbury Dairy Milk 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. In fact Cadbury 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. Cadbury Dairy Milk has smartly positioned itself keeping in mind all 4 P’s of marketing: • Product • Price • Place • Promotion Constituents of Brand positioning of Cadbury Dairy Milk:  Means of celebration  Consistent taste  Consistent quality  Healthy  Sharing happiness with the dear ones  Occasional product Tolani Institute of Management Studies Page 24
  • 25. CHAPTER 7 SUMMARY OF COMPETITOR ANALYSIS COMPANY FOUNDED IN BRAND PORTFOLIO (confectionery products) Nestle 1860s Kit Kat, Smarties, Wonka Ferrero 1940s Rocher, Raffaello, Kinder, Tic Tac, Mon Cheri, Nutella Mars 1911 Bounty, Galaxy, Mars, Snickers, Milky Way, Wrigley’s, M&M’s etc Amul 1945 Milk chocolate, Fruit & Nut Tolani Institute of Management Studies Page 25
  • 26. chocolate Hershey’s 1894 Hershey’s milk chocolate, Kisses, Pot of gold, Milk duds, Reese’s, Icebreakers etc Perfetti 2001, when Perfetti Alpenliebe, Van Melle and Van melle Chlormint, merged Centerfresh, Happydent, Mentos ITC 2002(confectionery Minto and segment) Candyman Parle 1929 Melody, mango bite, poppins, kismi toffee, mazelo, xhale, éclair, golgappa, parle lites, orange candy Tolani Institute of Management Studies Page 26
  • 27. Tolani Institute of Management Studies Page 27
  • 28. Chapter 8 SWOT ANALYSIS Strength Weakness  Dairy milk is owned by  Certain segment feel that price Cadbury which is a globally of Dairy Milk is high and established brand name known compared to that Amul Milk for its manufacturing chocolate is preferred. competency and leadership in innovation.  Dairy Milk has been able to  Dairy Milk is somewhat establish a clear and consistent lacking in other emerging Brand Image over the years. markets. It has strong command over its brand image in India and Europe But other places it is lacking.  It offers quality product with innovations with innovative communication campaign  Dairy Milk has huge command - over its distribution network spanning across India.  Dairy Milk also enjoys a great - Brand Recall value when comes to chocolates with Milk. Tolani Institute of Management Studies Page 28
  • 29. Threats Opportunities  Increasing competition from  To introduce sugar free category is international brands is biggest biggest opportunity for Dairy Milk. threat to Dairy Milk  Highly price sensitive nature of the  Dairy Milk can innovate more by industry. bringing international flavors so that is also gets an opportunity to compete with this threat as well. Tolani Institute of Management Studies Page 29
  • 30. CHAPTER 9 BRAND EQUITY EVALUATION CBBE pyramid: High Brand Loyalty, high no. of repeat purchases High quality Well trusted packaging, brand, good reasonably gifting option priced Supreme taste All age groups, and quality celebrations, special occasions, history Very High Awareness: Tolani Institute of Management Studies Page 30
  • 31. BRAND MANTRA OF DAIRY MILK Adding Sweetness to your life Tolani Institute of Management Studies Page 31
  • 32. Data Analysis 1) Aware of Cadbury? 2) Source of awareness? Tolani Institute of Management Studies Page 32
  • 33. 3) Which Cadbury chocolate do you purchase the most? Consumption Dairy milk (56%) 5 Star (18%) Gems (8%) Perk (6%) 4) Other than Cadbury? Tolani Institute of Management Studies Page 33
  • 34. 5) Which pack size? 6) How frequently do you purchase Cadbury chocolates? Tolani Institute of Management Studies Page 34
  • 35. 7) Availability? 8) Which of the factors affect your purchase? Tolani Institute of Management Studies Page 35
  • 36. 9) Impulse purchase? 10) Will you stop buying Cadbury, if new brand appears in Market? Response No, not at all (60%) I may consider (24%) Cant's say (16%) Tolani Institute of Management Studies Page 36
  • 37. CHAPTER 10 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. Attractive displays at the payment counter will induce impulse buying. They can also consider coming up with their exclusive „Chocolate Boutiques’. For festivals like Christmas Dairy milk can introduce special chocolates like rum and champagne flavoured chocolates. CONCLUSION Cadbury Dairy Milk even though a foreign brand, has wonderfully understood the Indian Chocolate Industry as a unique mix with extreme consumption patterns, attitudes, beliefs, income level and spending of the money. Understanding consumer preferences and need 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 has scored on all these parameters and therefore has maintained its position on Global Market as No 1 Chocolate Tolani Institute of Management Studies Page 37
  • 38. Appendix Questionnaire 1) Are you aware of Cadbury? a. Yes b. No 2) What is the source of awareness? a. Ads b. Word of Mouth c. Saw in shops 3) Which Cadbury chocolate do you purchase the most? a. Dairy Milk b. 5-star c. Gems d. Perk e. Bournville f. Dairy milk Silk g. Temptations h. Celebrations Tolani Institute of Management Studies Page 38
  • 39. 4) Other than Cadbury which brands are you aware of? a. Nestle b. International Brands c. Home-Made d. AMUL 5) Which Pack Size do you purchase? a. Medium b. Small c. Family Pack 6) How frequently do you purchase Cadbury chocolates? a. Weekly b. Daily c. Monthly d. Once in a fortnight 7) Are Cadbury chocolates easily available? a. Very Much b. Quite c. Hardly Tolani Institute of Management Studies Page 39
  • 40. 8) Which of the factors affect your purchase? a. Ads b. Attractive Display c. Occasion d. Suggestion from friends e. Brand Ambassadors f. Ingredients 9) Impulse Purchase? a. Yes b. No 10) Will you stop buying Cadbury Dairy Milk, if similar brand appears in the market? a. No, not at all b. I may consider c. Can‟t say Tolani Institute of Management Studies Page 40