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Description

CONTENTS

EXECUTIVE SUMMERY

COMPANY OVERVIEW

HISTORY (CADBURY)

CADBURY MILESTONES

4 Vision

4 Mission

CADBURY PRODUCTS

BRAND ELEMENTS

BRAND POSITIONING AND REPOSITIONING

CHANGING PERCEPTION

CHANGING PERCEPTION OVERTIME THROUGH ADVERTISEMENT

POINT OF PARITY (POP) & POINT OF DIFFERENCE (POD) POPs PODs

POP’s & POD’s OF CADBURY DAIRY MILK

BRAND EXPLORATORY

BRAND MANTRA OF DAIRY MILK

CUSTOMER-BASED BRAND EQUITY PYRAMID

RATIONALE OF CBBE MODEL:

BRAND SALIENCE

DEPTH OF AWARENESS

BREADTH OF AWARENESS

BRAND PERFORMANCE

BRAND IMAGERY

BRAND JUDGMENTS

BRAND FEELINGS

BRAND RESONANCE

5C Analysis

IMPULSIVE CHOCOLATE BUYING BEHAVIOR AND PRICING

Bibliography

EXECUTIVE SUMMERY The story of Cadbury Dairy Milk started way back in 1905 at Bournville,

but the journey with chocolate lovers in India began in 1948

Currently Cadbury India operates in five categories,

which are Chocolate Confectionery,

Milk Food Drinks,

Gum and Snacks category

In the Chocolate Confectionery business,

Cadbury has maintained its undisputed leadership over the years

Some of the key brands are Cadbury Dairy Milk,

5 Star,

Éclairs,

Celebrations,

Temptations and Gems

Cadbury enjoys a value market share of over 70%

! Their flagship brand Cadbury Dairy Milk is considered the "gold standard" for chocolates in India

The pure taste of CDM defines the chocolate taste for the Indian consumer

Earlier Cadbury Dairy Milk had positioned itself as a chocolate for kids

Later it was repositioned as a chocolate meant for all age groups emphasizing on the children hidden in us

The model that we have used is Customer Based Brand Equity Model and with the help of this model we have analyzed that how Cadbury Dairy milk has evolved since years and its perception has changed in the minds of consumer overtime

Cadbury Dairy Milk has done this perception evolving process with the help of aggressive advertising and they have been very successful in achieving their target

COMPANY OVERVIEW 2

HISTORY (CADBURY)

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,

It entered the era of scientific management

it introduced new ideas for their department like: Advertisement & Cost Analytical Laboratories Sales Department Offices Education & Training for Works Committee Medical Department employees on 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’s mind and their craze for Cadbury Dairy Milk

CADBURY MILESTONES The Cadbury story is a fascinating study of industrial and social developments

From a one man business in 1824,

Cadbury has grown to be one of the world's largest producers of chocolate

A small family business developed into an international company and the high standards of the Cadbury brothers were combined with the most sophisticated technology,

Vision    

The governing objective for Cadbury India is to deliver Superior Shareholder value

Cadbury in every pocket

Sustain growth of Cadbury’s market through aggressive product development

Focusing on cost competitiveness & productivity in operations and innovative

 Investing to develop people

Mission  “To provide customers with a tempting and exquisite taste” as enticing treats means a mouthwatering treat which is simply irresistible

 “Cadbury means quality” this is the promise of Cadbury

Its reputation is to build upon quality

Its commitment to continuous improvement will ensure that promise

CADBURY PRODUCTS Chocolate       

Cadbury Dairy Milk Cadbury Celebrations Bournville 5 Star Perk Gems Toblerone

BRAND ELEMENTS 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

In India and across the world,

the only chocolate wrapped in Purple with the logo of Cadbury written on it

Color of 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 relation of milk with the product

Logo Not only the above three,

But there are many more elements due to which the consistent Branding of Dairy Milk is so very popular

Its different Advertisements,

its punch lines etc… It has always kept a strong association with Milk,

with slogans such as “a glass and half of full cream milk in every half pound

” And also advertisement which featured a glass of milk pouring out and forming the Dairy Milk bar

Also the ad campaigns are also the important element of Dairy Milk

It made chocolate an eating habit among the consumers,

Long back it was a belief that chocolate is only for kids

But Dairy Milk changed this belief

Also they changed the trend of Sweets during the occasions like Diwali,

New Year etc… Dairy Milk brought a new trend that whether any occasion,

Dairy Milk is best for all

It also gave some famous dialogues from the ads which people remember always

They were also the core brand elements of Dairy Milk

Let us see them below: The Real Taste of Life- A girl

Cricket

SriLanka

campaigns/advertisements plays apart

“ Khane walo ko Khane ka Bahana Chahiye ” “ Kuch Meetha Ho Jaye “ “ Pappu Paas ho Gaya “ “ Aaj Pehli Tareekh Hai “ “ Shubh Aarambh “

All these above dialogues were forming the very famous and popular ads of Dairy Milk

By this ad they wanted to convey to the people that for eating Dairy Milk they do not have to wait for any occasion

They can just have it

Whether they are happy or Sad,

But Dairy Milk can be taken in any of the mood

BRAND POSITIONING AND REPOSITIONING Cadbury Dairy Milk has been the market leader in the chocolate category for years and has participated and been a part of every Indian's moments of happiness,

Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market

In the early 90's,

chocolates were seen as 'meant for kids',

usually a reward or a bribe for children

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 had many memorable executions,

which people still fondly remember

However,

the one with the "girl dancing on the cricket field" has remained etched in everyone's memory,

as the most spontaneous & uninhibited expression of happiness

This campaign went on to be awarded 'The Campaign of the Century',

in India at the Abby (Ad Club,

Mumbai) awards

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

More recently,

the 'Kuch Meetha Ho Jaye' campaign associated Cadbury Dairy Milk with celebratory occasions and the phrase "Pappu Pass Ho Gaya"(my son got passed) became part 7

It has been adopted by consumers and today is used extensively to express joy in a moment of achievement and success

The interactive campaign for "Pappu Pass Ho Gaya""(my son got passed) bagged a Bronze Lion at the prestigious Cannes Advertising Festival 2006 for 'Best use of internet and new media'

The idea involved a tie-up with Dialog Mobile service (Sri Lanka)/reliance mobile service (India) and allowed students to check their exam results using their mobile service and encouraged those who passed their examinations to celebrate with Cadbury Dairy Milk

The 'Pappu Pass Ho Gaya'"(my son got passed) campaign also went on to win Silver for The Best Integrated Marketing Campaign and Gold in the Consumer Products category at the EFFIES 2006 (global benchmark for effective advertising campaigns) awards

CHANGING PERCEPTION 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,

Holy color day,

Weddings Dairy Milk have absolute loyalty status

Loyalty Status As we know that Dairy Milk is the only Brand who is the only one to promote chocolate as an important part of Festivals as well as it changed the mind sets of the people that chocolate 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” (Real taste of milk chocolate)

For Indians occasions and festivals have utmost importance and Dairy Milk rigorously focused on this point and set a new trend of having Dairy Milk in place of “sweets” during the occasions

CHANGING PERCEPTION OVERTIME THROUGH ADVERTISEMENT

Cadbury is a brand that all of us have literally grown up with

Though it has been immensely successful in its operations in the USA,

Australia,

it entered the Sri Lankan market only in 1990

Since then,

it has used a variety of strategies and a string of ad campaigns to reach out to the Sri Lankan consumer

Initially,

Cadbury ads targeted children – they showed a loving father bringing chocolates home for the children as a surprise

The ads were formulated keeping in mind the Sri Lankan 8

where the children didn’t have money with themselves to buy sweets and chocolates

With this,

Cadbury was able to capture a substantial part of its target segment – the kids

it launched its famous ad where a teenage girl watches her friend play cricket and jumps into the cricket field,

eating a Cadbury chocolate as soon as he hits a century

Another advertisement showed a prospective bride with mehndi on her hands,

prying open the wrapping of Cadbury chocolate with her elbows

It showed that teenagers too can enjoy the Cadbury chocolate

Girl in the cricket field

Mehndi It shows people from all age groups – a housewife in her 40s,

and a teenager – enjoying the chocolate as Cyrus sang in the background “Khaane walon ko khaane ka Bahana Chahiye”

In this way,

Cadbury created inroads into all possible age groups

Post this,

Cadbury changed its strategy

Having tapped all age-groups,

it wanted to project Cadbury chocolates as a Meetha – thereby trying to eat into the market of traditional Indian sweets

Advertisements were doled out showing Cadbury chocolate being enjoyed at every possible instance- before a good task (Shubh kaam ke aarambh se pehle),

after dinner (Khaane ke baad meethe mein kya hai),

on payday (Khush hai zamaana aaj pehli taariq hai),

after passing exams (Pappu pass ho gaya) or while just having a good day (Main khush hun aaj khamakha)

Apart from this,

Cadbury always comes out with special advertisements before important festivals like Diwali (toh iss Diwali aap kise khush karenge) and Holy color (Cadbury Celebrations- Pyar ka shagun)

Cadbury was projected as the chocolate to eat on important as well as happy occasions

Kuch meetha ho jaaye ShubhAarambh Khaane ke baad Khush hai zamana Pappu pass ho gaya Main khush hun Diwali Rakshabandhan It is because of such intelligent and innovative marketing strategies that Cadbury is the most successful chocolate brand in the India

Even now it posts a revenue growth of 30% annually,

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

Compared to other they make the brand brands

Something different from the other

POP’s & POD’s OF CADBURY DAIRY MILK

Point of Parity Point of Difference Chocolate manufacturing Legacy Goodwill Variants such as Fruit & Nut,

Dark Emotional connect with customers Chocolate Constant innovation in ads Generic name in Indian chocolate market Good quality products Campaigns targeting from kids to adults Association 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

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 There are two main sources of Brand Equity and they are: Brand Image Awareness It is customers’ ability to identify under different perception about the situations

Brand Image has three things form Brand main pillars: How Awareness: Brand strong it is,

Is it Recognition and Brand Favorable and what Recall are the unique brand associations

BRAND MANTRA OF DAIRY MILK Dairy Milk also enjoys a great

Dairy Milk has huge command over

Certain segment feel that price of innovations with crafted Dairy Milk is high and compared to communication campaign that Amul Milk chocolate is preferred

It offers quality product with Dairy Milk is somewhat lacking in establish a clear and consistent other emerging markets

It has Brand Image over the years

Strong commands over its brand image in India and Europe But other places it is lacking

Dairy Milk has been able to 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

CUSTOMER-BASED BRAND EQUITY PYRAMID

RATIONALE OF CBBE MODEL:

Basic premise: The power of a brand resides in the minds of the customers

The challenge is to ensure that the customers have the right kind of experiences with the products and services and their marketing program to create the right brand knowledge structures i

Thoughts Feelings Images Perception & Attitudes

Building a strong brand involves a series of steps as part of a “branding ladder”

It is characterized by a logically constructed set of brand “building blocks”

We need to identify the areas of strength and weakness and to provide guidance to marketing activities

BRAND SALIENCE

Brand Salience measures awareness of the brand,

how often and how easily the brand is evoked under various situations or circumstances

It is the same as brand identity i

DEPTH OF AWARENESS

It measures how likely it is for a brand element to come in mind i

ease of recognition and the ease with which it does so i

The Cadbury brand is associated with best tasting chocolate which includes from everything from solid blocks to chocolate filled bars and novelties

For many people,

chocolate is Cadbury and no other brand will do

The core values of quality,

taste and emotion supports the Cadbury brand

Consumers know that they can trust a chocolate bar that carries Cadbury branding

The swirling chocolate and „glass and a half‟ are powerful images

They both portray a desire for chocolate while the half full glass suggest core values of goodness and quality

The brand has been successful in establishing the link,

BREADTH OF AWARENESS

It measures the range of purchase and usage situations in which the brand element comes to mind

Branded products command premium prices

Consumers are willing to pay the premium if they believe that the brand offers levels of quality and satisfaction that competing brands do not

Now Dairy Milk comes in Rs

The campaigns of „Pappu pass ho gaya‟ and „Miss Palampur‟ aim to popularize Dairy Milk connecting it to various usage situations

Three consumer segments of „impulse‟,

„take home‟ and „gift‟ has been identified

Impulse purchases are usually products bought for immediate consumption

Take Home confectionary is generally bought in supermarket and is often driven by specific need

The specific need or usage can be an occasion

The consumers make more rational decisions like brand influence,

These areas are further subdivided for e

the gift sector comprises special occasions (B‟days or festivals) and token or spontaneous gift

BRAND PERFORMANCE

It describes how well the product meets customers‟ more functional needs

It transcends the product’s ingredients and features to include dimensions that differentiate the brand

The Cadbury brand name has been existence since 1824 when John Cadbury opened his shop in Birmingham,

England

Over the years it has survived in a highly competitive market and developed its competitive advantage

It is successful in communicating the customers that it is still the ultimate in chocolate pleasure

It has shown the consistency in performance

The strength of the umbrella brand supports the brand value of each chocolate bar,

thus implying how reliable the brand is

Cadbury’s packaging on the functional level,

the pack was structurally sound to protect the product quality in distribution and storage conditions,

thus the consumers can acknowledge the durability of the product

The economic life of the product was mentioned in the product as per the respective food regulatory body

Cadbury’s world famous packaging is comprised of four key elements: 1

Distinctive packaging design The Cadbury corporate purple color The glass and a half full of full cream milk logo The Cadbury script logo

These elements convey to consumers the memorability,

distinctiveness and high quality of Cadbury products

The attractiveness of packaging alone can be instrumental in stimulating a purchase specially impulse buyers

The brand also comes in various attractive packages for different occasion like „Diwali‟,

Holy color day‟,

BRAND IMAGERY

It depends on the extrinsic properties of the product including the ways in which the brand attempts to meet customer’s psychological or social needs

The intangible association to Cadbury includes family experiences,

The product could be bought from supermarket on the insistence of the child to its parents or from department store or specialty store through impulse buying or for little pleasures

Cadbury as a person is able to create a feeling of warmth,

the togetherness of family & friends on special occasions,

to hold those relationships in life which are of prime importance and to savor the sweet success of winning

The core values of quality,

taste and emotion are the pillars of the brand

The milk pouring on the chocolate bar,

the icon represents the unique production process in Cadbury’s Dairy Milk chocolate which uses a glass and a half of full cream Irish milk in every half-pound,

hence the unique taste of the chocolate

It serves to identify the product,

its contents and the manufacturer

The heritage that has been passed down from the past

BRAND JUDGMENTS

These are customer’s personal opinions about and evaluations of the brand,

which consumers form by putting together all the different brand performance and imagery associations

Brand Quality: Consumers trust the brand because there is certain level of quality attached to it

The people buy chocolates during the auspicious occasion as a token of their love tells the level of trust that the people have

Brand Credibility: The brands like Five Star,

Perk derive benefit from the Cadbury parentage including quality and taste credentials

The flagship chocolate brand,

Cadbury Dairy Milk which is over 100 years old,

is the third largest largest chocolate brand globally with retail sales of $2 billion

Its revenue grew by 5% in the year 2007 and by further 9% in the first half

Brand Consideration: The brand has been considered for possible purchase and use not only as a chocolate but it has become a substitute for sweet

The punchline „Kuch Meetha Ho Jaye‟ justifies this

The campaign has been highly successful with the brand endorsement of Amitabh Bachchan and consumers buy it for occasions like “Diwali” and “Holy color day” Brand Superiority: The unique taste of chocolate which comes in a pure form

BRAND FEELINGS

These are customers‟ special responses and reactions to the brand

The feelings that are evoked by the marketing program or by other means

Warmth The brand evokes a soothing type of feeling

As the chocolate melts inside our mouths,

a similar soothing effect is felt inside our hearts

The commercial for the cricket match shows how sweet success of winning can be savored by the sweet taste of Cadbury

It also depicts fun and excitement

Passion It is reflected in the impulse buying nature of consumers

The commercial featuring a girl with „mehndi‟ put on her palms has a strong desire to have chocolates and she is adamant to have it

Bond of Love & Relationships The brand provides the consumers with an opportunity to express their love to their family and friends

It is a time to celebrate and have few precious moments of togetherness

Enthusiasm The cricket match commercial also reflects the fun & the excitement

The brand makes the consumers feel excited

BRAND RESONANCE It describes the nature of this relationship and the extent to which customers feel that they are “in sync” with the brand

It is characterized in terms of intensity,

or the depth of psychological bond that customers have with the brand,

also the level of activity engendered by this loyalty (repeat purchase rates and extent to which customers seek out brand information)

Attitudinal attachment The level of attachment can be judged by the fact that the consumers feel that is a perfect gift for special occasions

It could be used to express their token of love

The “Little pleasures” that can be derived from the moments of family get-together

The moment consumers think about celebration they think about the brand

Sense of community The consumers feel a kinship or affiliation with other people associated with the brand

The commercial in which Big B and his childhood friend exchange their gifts they feel how much their choices resemble and automatically a feeling of kinship is developed

The sense of belongingness to that particular brand is generated

Behavioral loyalty The repeat purchases on various occasion be it Diwali,

Christmas or to express their love or vote of thanks,

only this brand comes to the consumers mind

This is the level of loyalty that the Cadbury brand shares with it consumers

5C Analysis

Company:

unit of Kraft Foods and sold in several countries around the world

It first went on sale in 1905 in the United Kingdom

The current parent is Mondelez International

Customers:

Since dairy milk has a range of product suited for every member of the family

The aim is to strengthen the brand relationship in the current consumer’s life

The ranges of customers vary for diary milk

Whereas some buy it as an alternative for sweet others buy it as a gift item

The consumers mostly buy the product on impulse and are influenced by taste/flavor and then by company/brand

Competitors:

Ferrero Rocher,

Amul chocolates & unbranded chocolate

The high end chocolates (Bournville and silk) also face competition also face competition from the imported Swiss chocolates

But one of the biggest advantages the dairy milk has over its competitors is the brand loyalty that it has got

The excellent advertising,

reach and accessibility have made it the top of mind brand in the chocolate category

Climate:

With the size of the market being so big along with encouraging category growth the prospects look very good

Since the product is not seasonal and the margin is also good makes the climate for the industry even better

With new 18

innovations coming up in terms of product and packaging the market is still on a growth curve

Collaborators:

Over the years the company has partnered with various other companies like Adam Philippines in 2001 so that diary milk has a much wider distribution network in the Philippines Challenges

IMPULSIVE CHOCOLATE BUYING BEHAVIOR AND PRICING Impulsive behavior occurs when the consumer is looking for immediate hedonic benefits

It is commonly associated with urges to smoke,

'Impulsive behavior' is defined by 'Consumers experiencing an irresistible urge to consume',

which they might even regret later

Whether an individual focuses on cost or the benefit of impulsiveness depends on the chronic values of the consumer,

which forms the core of its personality

Hedonic personalities will focus selectively on the benefits than the cost of impulsiveness and are considerable uninfluenced by the costs

such individuals become insensitive to price aspect when their hedonic urge is driving the purchase decision

Let us explain the growth of the market at the higher end of the spectrum in recent years in chocolate category with this argument

The product offerings on the higher end are of rich chocolate (e

Dairy Milk Silk) based products (associated with taste and pleasure) instead of wafer-based offerings (which serve as a snack)

This shows that brands command a better premium when an impulsive urge rather than functional benefits are the prime motivators for purchase

Even though chocolate buying behavior is impulsive,

research suggests that the relative accessibility of inputs such as costs versus the benefits of impulsiveness influences impulsive behavior

Impulsiveness is unaffected by cost highlighting arguments which explains the ineffectiveness of advertisements discouraging cigarettes,

When the benefit of impulsiveness was the pleasure of yielding to temptation,

that 'triggered the desire' or 'highlighted the benefits of giving in to the temptation' appealed most to the hedonic individuals

However,

the prudent personalities give more value to the cost than the benefits

the benefits are relatively non-influential in judgment

advertisements that justify the cost of impulsiveness can help provoke impulsiveness in such consumers

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