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Praxis Business School

Brand Image Measurement of Cadbury Dairy Milk

A report

submitted to

Prof. S. Govindrajan

In partial fulfillment of the requirements of the course

Product and Brand Management

On 20-08-09

By

Abhishek Das (B08002)

Nabila Azmatulla (B08018)

Parikshit Ghoshal (B08021)

Somnath Roy (B08032)

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Executive Summary The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K., 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, Candy, 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, Perk, Éclairs, Celebrations, Temptations and Gems. Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world! 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 Quantitative Research Model that we have used is a suitable adaptation of the Brand Asset Valuator Model developed by Young & Rubicam. We have named our Model as SNAP Brand Asset Valuator where SNAP is reflective of the four team members’ initials.

We used a questionnaire as a research instrument for our BAV Model. After analysing all the four pillars of BAV model we found that Dairy Milk is the leader in Relevance, Esteem & Knowledge factors but it is lagging behind in differentiation. Therefore, we may conclude that, though it is a market leader, it is a declining brand.

The Qualitative Research Model that we have chosen to test the Brand Identity is Reynolds and Gutman’s “Laddering Method. From the Hierarchical Value Map we found out that Sense of achievement, Happy life, Social esteem, Sense of belonging, Fulfilling other responsibilities and Status are the end values which a consumer associates with chocolate.

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Table of Contents

SERIAL NO. CONTENTS PAGE NUMBER

1 History of Brand and its evolution over time

4

Company Overview 4

Company History 5

Cadbury Dairy Milk 6

Positioning and Repositioning 6

2 Instrument of Data Collection for Quantitative Research

8

Brand Asset Valuator 8

Data Collection 10

Questionnaire 11

Result and Analysis of BAV 13

3 Instrument of Data Collection for Qualitative Research

20

Laddering 20

Data Collection 21

Hierarchical Value Map of Chocolates

22

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History of the Brand and its Evolution over time

COMPANY OVERVIEW

Cadbury is a leading global confectionery company with an outstanding portfolio of chocolate, gum and candy brands. It employs around 50,000 people and has direct operations in over 60 countries, selling their products in almost every country around the world. The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K., but the journey with chocolate lovers in India began in 1948.

In India, Cadbury began its operations by importing chocolates. After 60 years of existence, it today has five company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). The corporate office is in Mumbai.

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Cadbury’s core purpose, which is "creating brands people love", captures the spirit of what they are trying to achieve as a business.

Currently Cadbury India operates in five categories, which are Chocolate Confectionery, Milk Food Drinks, Candy, Gum and Snacks category.

à 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, Perk, Éclairs, Celebrations, Temptations and Gems. Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world! 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.

à In the Milk Food drinks segment their main product is Bournvita - the leading Malted Food Drink (MFD) in the country.

à Similarly in the medicated candy category Halls is the undisputed leader.

à They recently entered the gums category with the launch of their worldwide dominant bubble gum brand Bubbaloo. Bubbaloo is sold in 25 countries worldwide.

à Cadbury Bytes was launched in 2004-05 as Cadbury's foray into the rapidly growing packaged snack market.

COMPANY HISTORY

à Cadbury is the world's largest confectionery company and its origins can be traced back to 1783 when Jacob Schweppe perfected his process for manufacturing carbonated mineral water in Geneva, Switzerland.

à In 1824, John Cadbury opened in Birmingham selling cocoa and chocolate.

Cadbury and Schweppe merged in 1969 to form Cadbury Schweppes plc. à Milk chocolate for eating was first made by Cadbury in 1897 by adding milk

powder paste to the dark chocolate recipe of cocoa mass, cocoa butter and sugar.

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à In 1905, Cadbury's top selling brand, Cadbury Dairy Milk, was launched.

à By 1913 Dairy Milk had become Cadbury's best selling line and in the mid

twenties Cadbury's Dairy Milk gained its status as the brand leader. à Cadbury India began its operations in 1948 by importing chocolates and then

re-packing them before distribution in the Indian market. à On 7 May 2008, the separation of our confectionery and Americas Beverages

businesses was completed creating Cadbury plc with a vision to be the world's BIGGEST and BEST confectionery company.

CADBURY DAIRY MILK

The pure taste of Cadbury Dairy Milk is the taste most Indians crave for when they think of Cadbury Dairy Milk. The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens & adults.

Recently, Cadbury Dairy Milk Desserts was launched, specifically to cater to the urge for 'something sweet' after meals.

Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a delightful combination of milk chocolate and white chocolate giving consumers an exciting reason to keep coming back into the fun filled world of Cadbury.

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, joy and celebration. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market.

à In the early 90's, chocolates were seen as 'meant for kids', usually a reward or a bribe for children.

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à 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 & 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.

à 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.

à More recently, the 'Kuch Meetha Ho Jaaye' campaign associated Cadbury Dairy Milk with celebratory occasions and the phrase "Pappu Pass Ho Gaya" became part of street language. 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" 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 Reliance India Mobile service 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' 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.

SOME INTERESTING FACTS

à Cadbury Dairy Milk emerged as the No. 1 most trusted brand in Mumbai for the 2005 edition of Brand Equity's Most Trusted Brands survey.

à Cadbury Dairy Milk & Bournvita have been declared a "Consumer

Superbrand" for 2006-7 by Superbrands India.

à During the First World War, Cadbury Dairy Milk supported the war effort. Over 2,000 male employees joined the armed forces and Cadbury sent books, warm clothes and chocolates to the front.

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Instrument of Data Collection for Quantitative Research

The Quantitative Research Model that we have used is a suitable adaptation of the Brand Asset Valuator Model developed by Young & Rubicam. We have named our Model as SNAP Brand Asset Valuator where SNAP is reflective of the four team members initials.

BRAND ASSET VALUATOR

BrandAsset Valuator® is Young & Rubicam's comprehensive global database of consumer perceptions of brands developed from the world's most extensive research program on branding.

― Over US$70 million invested ― Over 350,000 consumers ― 19,500 brands ― 173 studies since 1993 using the same methodology ― 44 countries

A BAV can be used to

― Assess brand health ― Assess strategy payoff ― Assess brand meaning ― Assess positioning ― Benchmark the brand ― Evaluate partnership opportunities ― Guide brand architecture ― Evaluate financial growth ― Allocate resources

The Four Key Brand Pillars

Brand Asset Valuator® demonstrates how brands are built on a specific progression of four consumer perceptions:

Differentiation, Relevance, Esteem and Knowledge.

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Over the past 12 years, BAV® studies have shown these four measures, the Four Pillars of BrandAsset Valuator®, are consistently linked to a brand's capacity to deliver revenue and profit.

à Differentiation Differentiation is the ability for a brand to be distinguished from its competitors. A brand should be as unique as possible. Differentiation drives successful brands. Differentiation is the foundation of a brand's existence and is critical to brand success.

à Relevance Relevance is the actual and perceived importance of the brand to a large consumer market segment. This gauges the personal appropriateness of a brand to consumers. If a brand is not relevant, or personally appropriate to consumers, it will not attract or retain them.

Relevance + Differentiation = Brand Strength

à Esteem Esteem = Popularity + Quality

Esteem is the perceived quality and consumer perceptions about the growing or declining popularity of a brand. Esteem conveys how well a brand fulfils its implied or stated consumer promise. The more a person believes in someone or something and its ability to deliver on the promise, the more respect it commands.

à Knowledge Knowledge is the result of all the marketing and communications efforts and experiences consumers have had with a brand. Consumers understand and remember those brands that demonstrate high knowledge. Knowledge cannot be achieved simply by increasing media support. High Knowledge scores generally takes time.

Esteem + Knowledge = Brand Stature

The Power Grid

Mapping the brand-

BAV® groups the leading indicators - Differentiation and Relevance - and the lagging indicators - Esteem and Knowledge. These pairs of Pillars are essential to map the life of a brand on a power grid.

A brand's strength - its Differentiation and Relevance- is plotted on the vertical axis.

A brand's stature - its Esteem and Knowledge - is plotted on the horizontal axis.

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A BAV constructs the power grid that plots Emerging Brands (strong differentiation), Unrealised Potential (strong differentiation, with increasing relevance and esteem), Declining Leaders (with decreasing differentiation and esteem) and Eroding Potential (low on differentiation and relevance).

RATIONALE FOR USING A BRAND ASSET VALUATOR

It helps in:

― Evaluating a brand within the entire world of brands, not just in its category ― Providing a deeper understanding of consumer behaviour ― Identifying marketplace opportunities and types of risk ― Predicting outcomes based on leading indicators, rather than lagging, and ― Anticipating future earnings and operating margins

The Four Pillars provide the framework for understanding brands. The relationships between these measures reveal the true picture of a brand's health: its intrinsic value, its capacity to carry a premium price and its ability to fend off competitors. While brands can be measured against others within a category, it is by measuring brands across all categories that their true strengths and weaknesses are identified.

DATA COLLECTION

RESEARCH INSTRUMENT

We have used a Questionnaire as the research instrument for collecting data which has been used in the BAV Model.

SAMPLE DETAILS

Sample Size : 40

Age Bracket : 20-30 years old

Composition : Men-70% , Women-30%

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QUESTIONNAIRE

Name: ______________ Age : ______________ Sex : ______________

1.) Identify the following brands of chocolates:

2.) Which of these brands of chocolates have you tasted? Dairy Milk Yes No 5 Star Yes No Kitkat Yes No Munch Yes No Amul Milk Chocolate Yes No Bournville Yes No

3.) Identify the brands with the following taglines: a) Kuch mitha ho jaaye. b) Have a break, have a ---------. c) Can’t stop munching. d) Jo khaye kho jaaye. e) A gift for someone you love.

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f) You don’t buy a ---------------, you earn it.

The following set of questions involve ranking for the 6 brands of chocolates specifies. Rank them from 1 to 6 , 1 being the most preferred and 6 being the least preferred

QUESTIONS RANKS

4) Which of these brands are innovative in terms of advertisements, product, packaging etc?

Dairy Milk

5

Star

Kitkat

Munch

Amul Milk

Chocolate

Bournville

5) If these brands are given human attributes, which of them would you like to be with?

6) Which brand of chocolates gives you more value for money?

7) Rank the brands according to preference with regard to quality.

8) Rank the brands according to their appeal across all age groups.

9) Which of these brands of chocolates would you gift to someone?

10) Rank the brands according to the trust associated with them.

11) Identify the following attributes with any 1 of these brands (Dairy Milk, 5 Star, Kitkat, Munch, Amul Milk Chocolate and Bournville)

Authentic Socially Responsible

Unique Fun

Popular Worth More

Down to Earth Useful

Glamorous Sensuous

Prestigious Strong

Dynamic Winner

Trendy Sensible

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RESULTS AND ANALYSIS OF BAV

Fig 1- Standing of different brand in terms of percentile rank

Looking at Fig.1 we can easily say that Dairy Milk is the leader in Knowledge, Esteem and Relevance factors. The only factor in which it is lagging behind is differentiation.

Looking at all the four factors separately, we can compare the performance of Dairy Milk vis-à-vis other brands-

1) Knowledge- Dairy Milk is the leader in knowledge, followed by 5Star, Kitkat, Munch and Amul milk chocolate. This shows that Dairy Milk is well known by customers both in term of visual brand recognition and tagline identification, the reason for which can be heavy advertisement and promotion.

2) Esteem – Dairy Milk is also a leader in esteem factor, the reason being high percentile score in gifting purpose, trust associated, prestigious and authenticity traits. Dairy Milk is followed by 5 Star, Amul Milk Chocolate , Bournville, Kitkat and Munch.

3) Relevance- Dairy Milk also scores the highest in relevance factor, the reason being very high percentile score in value for money, quality and appeal across all age group traits.

4) Differentiation- This is the only factor in which Dairy Milk is lagging behind Kitkat and 5 Star. Although it has scored high percentile in innovativeness but it is lagging behind in traits like uniqueness, glamour & fun factor.

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ANALYSIS OF THE BRAND- CADBURY DAIRY MILK

Differentiation and Relevance

The graph for differentiation and relevance for Dairy Milk is shown as follow:-

As differentiation is lower than the relevance we can conclude that the brand is slowly turning into a commodity and losing its brand value.

Knowledge and Esteem

The graph for knowledge and esteem for Dairy Milk is shown as follow:-

As knowledge and esteem factors are almost the same that’s why Dairy Milk is known by customers who also likes it.

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After analysing all the four pillars of BAV model we found that Dairy Milk is the leader in Relevance, Esteem & Knowledge factors but it is lagging in differentiation. So we may conclude that, though it is a market leader, it is a declining brand.

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Fig- Standing of Dairy Milk in different attributes according to percentile rank

Looking at this graph we can say that Dairy Milk is doing good in factors like innovativeness, usefulness, appeal across all age groups, quality etc, which is the upper part of the graph. But coming down we can see that it is doing poor in factors like Fun, uniqueness and glamour. So to be a market leader it has to do well in these factors.

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Percentile Rank

Differentiation 63.33 Relevance 93.33 Esteem 90 Knowledge 93.33 Overall Average 84.9975

As the average percentile score for all the four pillars is 85, so the brand is a strong brand.

Power grid

From the power grid we conclude that

à Dairy Milk is a declining brand

à 5 Star is the leader

à Kitkat is the brand which has unrealised potential

à Munch and Bournville are new brands

à Amul Milk chocolate is an unfocused brand

BRAND STATURE (ESTEEM & KNOWLEDGE)

BRAND STRENGTH (DIFFERENTIATION & RELEVANCE)

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Cadbury Dairy Milk is a declining leader

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This can be further confirmed by looking at the 2006 Results of Young and Rubicans BAV which is shown in the following diagram

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Instrument of Data Collection for Qualitative Research

The Qualitative Research Model that we have chosen to test the Brand Identity is Reynolds and Gutman’s “Laddering Method”

LADDERING

Laddering refers to an in-depth, one-on-one interviewing technique used to develop an understanding of how consumers translate the attributes of products into meaningful associations with respect to self, following means-end theory” (Reynolds & Gutman, 1988). Laddering originated in consumer research and relies heavily on Means-End Theory which states that people choose a product because it contains attributes (the means) that are instrumental to achieving the desired consequences and fulfilling values (the ends). In other words, users’ product choices and consumer behaviour are dependent on how they perceive certain product attributes as most likely to have certain desired consequences, which also seem beneficial to their individual values. The common generic means-end chain, therefore, consists of attributes (A), consequences (C) and values (V).

Attributes -> Consequences -> Values Laddering is useful in studies on human behavior. Laddering involves a tailored interviewing format using primarily a series of directed probes, typified by the “Why is that important to you?” question, with the express goal of determining sets of linkages between the key perceptual elements across the range of attributes, consequences and values. The laddering technique can be 'soft' or 'hard' laddering' (Zanoli and Naspetti, 2002).The hard laddering involves undertaking an in-depth interviews where the respondent is forced to produce ladders from non abstract to abstract level, while the soft laddering the respondent talks more freely in response to some questions and the ladders are implicitly deduced by the researcher. The hard laddering consumes less time and is most applicable to whenever the respondent is highly involved with the product (Zanoli and Naspetti, 2002) while the 'soft' laddering involves more probing and is applicable to low involvement situations.

RATIONAL FOR USING LADDERING

The objective is to provide a detailed description and analysis about the internal value that a consumer associates with the product. Through this insight in the

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relationships between attributes and values, we can understand the meaning that (product) attributes bring to users. The real interest therefore lies in the association networks; the meaningful couplings between attributes, consequences and values.

DATA COLLECTION

RESEARCH INSTRUMENT

Since Laddering by itself refers to a One-on-One in-depth interview, we have used the same for the purpose of data collection.

SAMPLE DETAILS

Sample Size : 15

Age Bracket : 22-30 years

Composition : Men- 60% , Women-40%

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HIERARCHICAL VALUE MAP OF CHOCOLATES

VALUES 1) Sense of achievement 2) Happy life 3) Social esteem 4) Sense of belonging 5) Fulfilling other responsibilities 6) Status

CONSEQUENCES 1) Time saving 2) After a fight

Sense of Achievement

Happy Life

Social Esteem

Sense of Belonging Fulfilling other

Responsibilities Status

Time Saving

Things go right

Easily available

Better mood

Flavour

Stress buster

After a fight

Good feeling

Melts in mouth

Sugary/ Sweet

Energiser

Better productivity

Healthy

Nuts/ Dry Fruits

Chocolates

Value for money

Intelligent consumer

Inexpensive

Frequent consumption

Saving

Allocation of money on other

things

Sense of satisfaction

Filling Packaging

Aroma

Tempting

Eat

Taste Crunchy

Different Texture

Differential Treatment

Sharing with others

Strong bond

Dessert

Habit

Gift

Liked by

Girls

Form of Expression

Inexpensive Gift

More Saving

Expensive Chocolate

Rich

Tradition of gifting

sweets

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3) Better mood 4) Things go right 5) Stress buster 6) Good feeling 7) Energizer 8) Better productivity 9) Healthy 10) Different texture 11) Differential treatment 12) Value for money 13) Intelligent Consumer 14) Frequent consumption 15) Saving 16) Allocation of money on other things 17) Tempting 18) Eat 19) Sense of satisfaction 20) Habit 21) Sharing with others 22) Strong bonds 23) Liked by girls 24)Form of expression 25) Tradition of gifting sweets 26)Inexpensive gift 27) More saving 28) Expensive chocolate 29)Rich

ATTRIBUTES 1) Easily available 2) Flavour 3) Melts in mouth 4) Sugary/Sweet 5) Nuts/Dry Fruits Chocolates 6) Crunchy 7) Inexpensive 8) Packaging 9) Aroma 10) Filling 11) Dessert 12) Taste 13) Gift

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From the above map we see that Sense of achievement, Happy life, Social esteem, Sense of belonging, Fulfilling other responsibilities and Status are the end values which a consumer associates with chocolate. A number of product attributes give rise to a few consequences, which lead towards the mentioned values. Therefore, the positioning of Cadbury Dairy Milk should be made keeping in mind these end values. The current advertisements aim at creating all the mentioned end values. The value associated with gifting chocolates should be targeted more vigorously.

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Bibliography

http://www.cadburyindia.com/brands/choco1.asp http://en.wikipedia.org/wiki/Cadbury_Dairy_Milk http://www.iloveindia.com/economy-of-india/top-50-companies/cadbury-india.html http://www.brandassetvaluator.com.au/ http://blogs.siliconindia.com/jayanttiwari/brand_asset_valuator-bid-3862wUuS11412992.html http://fmcg-marketing.blogspot.com/2007/10/brand-asset-valuator-bav.html http://wiki.service-science.ctm.nthu.edu.tw/index.php/Laddering http://soc.kuleuven.be/com/mediac/cuo/admin/upload/Laddering%20the%20User%20Experience.pdf