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Brand audit of cadbury


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Brand audit of cadbury

  1. 1. BRAND AUDIT OF CADBURY DAIRY MILK Presented By: Group 1: Sonia Dadlani Leena Chellani Pallavi Vats Chandan Pahelwani Nikunj Gajara Atirek Neeraj YashwantTolani Institute of Management Studies Page 1
  2. 2. TABLE OF CONTENTSTolani Institute of Management Studies Page 2
  3. 3. LIST OF FIGURESTolani Institute of Management Studies Page 3
  4. 4. ABSTRACTThe journey of Cadbury started way back in the year 1905 from Bourneville, UK. But itcame to Indian market in 1948. From the time it was introduced in India, Dairy Milk hasbeen the market leader in the confectionery segment. It has average daily sales of 1Million bars.The reason that our group chose Cadbury Dairy Milk for the Brand Audit is that itprovides us with ample scope to study the various aspects of Branding likeCommunication Strategies, Innovative Ad Campaigns, and Emotional Connect withConsumers, Brand Repositioning, and Rebranding etc…We will study the evolution of Cadbury Dairy Milk by focusing on following Aspects: Redefining strategy of Dairy Milk from Choclate segment for Kids to Adult. Strong Association with Milk Its use of Innovative & Interesting Ad Campaigns How Dairy Milk Bounced Back from Worm- Infestation Controversy in 2003 Acquisition of Cadbury by Kraft Foods.Tolani Institute of Management Studies Page 4
  5. 5. BRAND HISTORYIn 1824, John Cadbury opened a shop in Birmingham. This one-man business, tradingmainly in Tea & Coffee was to be the foundation of Cadbury Limited. For over 100 yearsCadbury 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. JohnCadbury took his brother Benjamin into partnership and the family business becameCadbury Brothers Birmingham.The business moved to Bourneville after outgrowing the Bridge Street Factory. TheWorkforce had risen up to 200 after 32 years at Bridge Street. After the death of twobrothers in 1899, the company was privatized. It entered the era of scientificmanagement; it introduced new ideas for their department like: Advertisement & Cost Analytical Laboratories Sales Department Offices Education & Training for Works Committee Medical Department employeesOn 2nd February, 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’smind and their craze for Cadbury Dairy Milk.Tolani Institute of Management Studies Page 5
  6. 6. OPERATIONSCadbury’s operations are carried out in many countries. Few of them are: United Kingdom Canada Ireland United States Australia New Zealand IndiaTolani Institute of Management Studies Page 6
  7. 7. BRAND ELEMENTSDairy Milk has been meticulously built around the world by Cadbury. It has been able tosustain a strong position in the market. There are many branding elements which haveresulted into consistent result of its success. Few core Branding Elements are as givenbelow: • 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 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. LogoNot only the above three, But there are many more elements due to which the consistentBranding of Dairy Milk is so very popular. Its different Advertisements, its punch linesetc… It has always kept a strong association with Milk, with slogans such as “a glass andhalf of full cream milk in every half pound.” And also advertisement which featured aglass of milk pouring out and forming the Dairy Milk bar.Also the ad campaigns are also the important element of Dairy Milk. It made chocolatean eating habit among the consumers, especially the adults. Long back it was a belief thatchocolate is only for kids. But Dairy Milk changed this belief. Also they changed thetrend of Sweets (Mithai) during the occasions like Diwali, New Year etc… Dairy Milkbrought a new trend that whether any occasion, Dairy Milk is best for all.Tolani Institute of Management Studies Page 7
  8. 8. It also gave some famous dialogues from the ads which people remember always. Theywere also the core brand elements of Dairy Milk. Let us see them below: The Real Taste of Life- A girl Dancing on Cricket Field Khanewalo ko Khane ka Bahana Chahiye Kuch Meetha Ho Jaye Pappu Paas ho Gaya Aaj Pehli Tareekh Hai Shubh AarambhAll these above dialogues were form the very famous and popular ad’s of Dairy Milk.By this ad they wanted to covey to the people that for eating Dairy Milk they do not haveto wait for any occasion. They can just have it. Whether they are happy or Sad, But DairyMilk can be taken in any of the mood.Tolani Institute of Management Studies Page 8
  9. 9. BRAND PORTFOLIO WorldwideIn June 1905, Cadbury launched its first Dairy Milk bar, with a higher proportion of milkand it became the best selling product of the company by 1913. Fruit and Nut wasintroduced in 1928.In 2003, Cadbury made Dairy Milk into a family brand by taking the brands likeCaramel, Whole Nut, and Wispa and marketed them as the sub-brands of Dairy Milk. By2006, there were 15 Dairy Milk sub-brands produced in UK including Shortcake Biscuit,Wafer, Orange Chips, Mint Chips, Crispies and Cream Egg. In following two years thesebrands were discontinued as they were not successful. Indian MarketThe Dairy Milk Brand alone accounts for approximately 33% of total Cadbury’s sales. Ithas made Cadbury the number one confectionery brand in the market. Currently in India,Dairy Milk has following sub-brands under its name. They are;Tolani Institute of Management Studies Page 9
  10. 10. BRAND POSITIONINGThe Brand Positioning of Cadbury Dairy Milk in mid 90’s was that chocolate is not onlyfor kids but also for adults. And to prove this they immediately released the very popular”Real Taste of Life” campaign , shifting the focus from “just for kids” to “ kid in all ofus”.Let us see the Brand Positioning of Dairy Milk on segmentation bases on two mainbases. And they are: Demographic Age and Life Cycle Gender Income • Buyers come under • Cadbury Dairy Milk • Price of Dairy Milk is the age group of 4-50 is for all: Male as well reasonable & years. as female. affordable. • Purchase of Dairy • Gender does not affect • Income does not affect Milk is not affected by the purchase of Dairy the purchase of Dairy generation differences. Milk. Milk of other than Silk.Dairy Milk silk is little higher in cost compared to ordinary Dairy Milk, Fruit and Nutand Crackle. But still people love to have Dairy Milk. Silk is the premium Brand ofDairy MilkTolani Institute of Management Studies Page 10
  11. 11. Behavioral User Status • Dairy Milk has regular users. They do not have any particular occasion. They just have it. • Children and youngsters play an important role Decision Roles in deciding when to have dairy milk. And now old age people also are slowly are in decision making. • Dairy Milk has changed the scenario of having Occasions sweet sometimes. They say have it anytime including Diwali, Rakshabandhan, Weddings • Dairy Milk have absolute loylaty status. Loyalty StatusAs we know that Dairy Milk is the only Brand who is the only one to promote chocolateas an important part of Festivals as well as it changed the mind sets of the people thatchocolate is not only for kids but for all.The strategy to target adults was taken further with the help of a brand new positioning“Kuch Meetha Ho Jaye”. For Indians occasions and festivals have utmost importance andDairy Milk rigorously focused on this point and set a new trend of having Dairy Milk inplace of “Mithai” during the occasions.Tolani Institute of Management Studies Page 11
  12. 12. COMMUNICATION STRATEGYUp to 2002, Cadbury was the one having 70 % market shares in chocolate industry. Outof which 30% was the Dairy Milk alone. This is because of constant re-invention of thebrand & bombarding communication towards the consumers consistently to maintain thetop position in mind recall in confectionery segment. Dairy Milk was awarded as No.1most trusted brand in Mumbai 2005 for the edition of Brand Equity’s most trusted BrandSurvey.Dairy Milk targeted all the aspects as possible to get into the heart of all the people, ofall age groups. For this they communicated with people through different Ad’s &Campaigns. Let us see few of them below: Khanewalo KO Khane ka Bahana Chahiye Pappu Paas Ho Gaya Shubh AarambhShubh Aarambh was one of successful campaigns of Dairy Milk. This means AuspiciousBeginning. With this campaign they said that for whatever you start, start it with DairyMilk and it will be successful. For this they chose the best to advertise: AmitabhBacchhan.Tolani Institute of Management Studies Page 12
  13. 13. Tools for CommunicationDairy Milk used different media options to communicate different campaigns andpromote Dairy milk. They are: Outdoor Television Radio InternetTV Advertisements is the most popular method for Dairy Milk to show their newcampaigns to people so that they can more and more relate it with their personal lives.They also have ground promotions in different malls. They arrange some contests also topromote their brand.Tolani Institute of Management Studies Page 13
  14. 14. DISTRIBUTION STRATEGYAs we know that Dairy Milk holds 30% value share of chocolate market. The demand ofchocolate is increasing day by day. And Dairy Milk is no. 1 in that race. Indian market &specifically where the penetration of chocolates is increasing, brings a need for efficiencyin logistics and distribution. There is stiff competition in the confectionery market due tolarge exposure of foreign currency rate risk, mainly on account of import of cocoa beans,cocoa butter. Cadbury Dairy Milk is easily available anywhere in the market. Cadbury’ssuccess of proper distribution is their efficiency. PRICING STRATEGYDairy Milk is positioned towards age group of 4-50, and thus the price is accordinglykept affordable. Also it is easily accessible to all categories. Price range starts from Rs.5to Rs.20 in different sizes. Cadbury Dairy Milk fruit and nut starts from Rs.30. DairyMilk Silk is a premium brand and thus the price of it is little higher that is Rs.50.Tolani Institute of Management Studies Page 14
  15. 15. COMPETITOR’S ANALYSISIn Indian Market, the main players in the confectionery market are Cadbury, Nestle,Candico, ITC and Parle. Let us see the competitors of Cadbury Dairy Milk in detailbelowCompany Founded in Brand PortfolioKraft Foods 1903 Cadbury Dairy Milk & Variants, Éclairs, Bourn vita etc…Nestle 1860 Kitkat, SmartiesFerrero 1940 Rocher, Raffaelo, NutellaAmul 1945 Milk Chocolate, Fruit and Nut chocolateCandico 1997 Loco Poco Gum, Big BubbleITC 2002(Confectionery Minto and Candy man Segment)Parle 1929 Melody, Mango Bite, Poppins, Kismi, Orange CandyTolani Institute of Management Studies Page 15
  16. 16. POINT OF PARITY (POP) & POINT OF DIFFERENCE (POD) POPs PODs Point of Parity Point of Difference Attributes or benefits Attributes which are which are strongly not unique but associate with somewhat same as competitive brand. compared to other They make the brand brands. something different from the other.Tolani Institute of Management Studies Page 16
  17. 17. POP’s & POD’s OF CADBURY DAIRY MILK Point of Parity Point of DifferenceChocolate manufacturing Legacy GoodwillVariants such as Fruit & Nut, Dark Emotional connect with customersChocolateConstant innovation in ads Generic name in Indian chocolate marketGood quality products Campaigns targeting from kids to adultsAssociation with milk Excellent distribution systems 2 Layer packaging Dairy Milk is the only one chocolate which says that in occasions also it can be used as sweet.Tolani Institute of Management Studies Page 17
  18. 18. BRAND EXPLORATORY Customer KnowledgeCadbury 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 toposition themselves as chocolates for all age groups and not just kids. The campaign hassuccessfully created a picture in the mind of the customers that Cadbury is not just achocolate but means of celebrations. Sources of Brand EquityThere are two main sources of Brand Equity and they are: Brand Brand Image Awareness It is customers ability to It is consumers identify under different perception about the situations. brand. Brnad Image has three Two things form Brand main pillars: How Awareness: Brand strong it is, Is it Recognition and Brand Favourable and what Recall are the unique brand associations.Tolani Institute of Management Studies Page 18
  19. 19. Based on various search results, Cadbury’s Dairy Milk not only enjoys high level ofBrand Awareness but unaided Brand Recall. This level of recall is generated when DairyMilk enjoys The Top of the Mind Effect. The Brand image of Cadbury Dairy Milk playsan important role in building the Brand Equity of Dairy Milk through the medium ofunique brand associations. Right from Kuch Meetha Ho Jaye campaign to the recentShubh Aarambh, Dairy Milk has managed to create strong, unique, and favorable brandassociations in the minds of the consumers which is commendable. Brand Recall andBrand image are the strong supports that Dairy Milk has with its all time availability andattractive packaging which only adds to the Brand associations for the Dairy Milk andhelp build its Brand Equity. Two more important sources of Brand Equity are: Emotional Connect Consumers taste and prefernces Tolani Institute of Management Studies Page 19
  20. 20. BRAND AMBASSADORSAs we know that previously Dairy Milk was only considered as Chocolate, but their newcampaign has changed this perception of consumers. As discussed above now Dairy Milkis considered as Traditional sweet of Indian culture(Mithai) which people give to theirnear 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 AmitabhBacchhan. He endorsed the brand so successfully that everyone loved the brand muchmore than they did. The endorsement has successfully captured the Indian festivals likeRakshabandhan, Diwali, Wedding, Birthdays etc… Now people give Dairy Milk as tokenof love, care and affection to their friends and family.Tolani Institute of Management Studies Page 20
  21. 21. DAIRY MILK MENTAL MAP Performance People Image Dairy MilkThese three form the mental map of Dairy Milk which associates with them the differentaspects. Let us see them in detail: Performance Image People Tasty Celebrations Children’s Healthy Casually Old Age Safe SuccessfulTolani Institute of Management Studies Page 21
  22. 22. CBBE MODEL Judgments Feelings Performance ImageryTolani Institute of Management Studies Page 22
  23. 23. BRAND MANTRA OF DAIRY MILKTolani Institute of Management Studies Page 23
  24. 24. SWOT ANALYSIS Strength Weakness  Dairy milk is owned by Cadbury  The recent acquisition of Cadbury which is a globally established by Kraft Foods may result in brand name known for its somewhat negative effect on the manufacturing competency and brand. leadership in innovation.  Dairy Milk has been able to  Dairy Milk is somewhat lacking in establish a clear and consistent other emerging markets. It has Brand Image over the years. strong command over its brand image in India and Europe But other places it is lacking.  It offers quality product with  Certain segment feel that price of innovations with crafted Dairy Milk is high and compared to communication campaign that Amul Milk chocolate is preferred.  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 24
  25. 25. 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 25
  26. 26. BRAND STRATEGIESThe marketing strategy that a business uses must reflect the objectives of the business asa whole. These strategies must therefore be consistent with the wider corporate objectivesof the organization. Strategies are likely to be influenced by the attitudes of decisionmakers towards matters such as the desirability of risk and change. Such attitudes areinfluenced not only by the environment within which a business operates but also by theviews of Managers and Directors and the culture of business itself.External influences also play a major role in any products advertising, its position in themarket. They range from consumers to press and media, and also health and safety laws.PEST Analysis will more clearly throw light on external environment and global factorsthat may affect Dairy Milk’s Business. This will give a quick and visual representation ofthe external pressures facing the business and their possible constraints on strategy.PEST means: Political Economical Social TechnologicalTolani Institute of Management Studies Page 26
  27. 27. Political FactorsCadbury at the time of finalizing any marketing strategy will have to think of differentpolitical factors regionally, nationally and internationally.Tolani Institute of Management Studies Page 27