711. brand and brand visibility (with reference to cadbury)
TRANSCRIPT
DISSERTATION SUBMITTED TOWARDS THE
FULFILLMENT OF FULL TIME MASTERS DEGREE IN
BUSINESS ADMINISTRATION
BRAND AND BRAND VISIBILITY
(WITH REFERENCE TO CADBURY)
Submitted to: Submitted by:
Mrs. Suchi Selot Arshgeet
(Faculty guide) A1802006069
MBA-IB(sem4)
1
Acknowledgement
The completion of this project does not include a singular effort, rather the knowledge,
guidance and help of many people has made it possible. I would like to use this space to
thank all these people.
I am thankful to have extremely capable faculty Miss Suchi Selot who helped me in
gaining momentum in my research and to arrive on conclusive results. My most sincere
gratitude to his, Under whose guidance I have done my dissertation and with whose help
I have progressed in this project. I admire him simply for his style of functioning that
brought more seriousness to my internship. Most of the sessions I had with him have
been invigorating and enlightening. It has been extremely pleasant and encouraging to
have his as my guide
ARSHGEET
2
TABLE OF CONTENTS
Page no.
1. Executive summary 4
2. Research objective 6
3. Research methodology 9
4. Scope of the study 7
5. Limitations 8
6. Introduction 9 what is a brand brands versus products why do brands matter importance of brands benefits of a strong brand creation of a strong brand
7. Cadbury India Ltd. 24 chocolate market in India confectionary market in India
8. Conclusion and Analysis 34 communication
9. Recommendations 47
10. Annexure 4811. Bibliography and References 49
3
EXECUTIVE SUMMARY
Brand building can be a powerful growth strategy for businesses of
any size - large, medium, or small. The key is to understand what it is
you do best and to use brand awareness to communicate that
message repeatedly across your target market. With increased
exposure of the brand to the consumer's eye, there is greater brand
mindshare.
Philip Kotler notes that competition within many markets essentially
takes place at the product augmentation level because most firms can
successfully build satisfactory products at the expected product level.
A brand is therefore, a product, but one that adds other dimensions
that differentiates it in some way from other products designed to
satisfy the same need. These differences may be rational and
tangible–related to product performance of the brand–or more
symbolic, emotional and intangible–related to what the brand
presents.
More specifically, what distinguishes a brand from its unbranded
commodity counterpart and gives it equity, is the sum total of
consumers’ perceptions and feelings about the product’s attributes
and how they perform about the brand name and what it stands for,
and about the company associated with the brand.
4
Cadbury India, a subsidiary of Cadbury Schweppes, is the market
leader in the Indian chocolate market and malted health drink
category with strong brands like Dairy Milk, Five Star, Perk, Gems,
Bournvita etc. Cadbury Schweppes is one of the leading global
companies in beverages and confectionery businesses with operations
in over 190 countries.
The proposed study and outcomes will give an insight to the strategies
used by Cadbury India to create a strong brand and enhance its brand
visibility. It would further include a critical review on the importance of
brand visibility and the ways to adopt better brand visibility strategies
in order to achieve an increase in brand awareness and overall growth
of product sales.
5
RESEARCH OBJECTIVE
The main objective of the report is to carry out an in-depth study of
the role of brand and brand visibility on consumer awareness and
brand recall. In order to achieve this, the research has been carried
out with reference to Cadbury India- to analyze the strategies used by
the company to increase its brand visibility.
6
RESEARCH
METHODOLOGY
Research design
The fundamental objective was to search for secondary data or
information from newspapers, libraries, internet etc. and make a
survey of the consumers to obtain the further information. So,
exploratory research design was adopted.
Collection of data
The Methodology adopted was combination of:
a. Primary Data Collection:
Word of mouth interview was carried out with various
customers. The interview was structured with questions
and the information to be collected was decided in
advance.
7
b. Secondary Data Collection: The data has also been collected
from:
Books
Magazines
Editorials
Internet
Libraries
newspapers
8
SCOPE OF STUDY
This study provides a review of the importance of brand visibility and
the strategies followed by various FMCG companies, particularly
Cadbury India Ltd., to increase its brand visibility and brand
awareness. The objective is to critically analyse these strategies and
suggest appropriate recommendations along with learning about the
different strategies already being followed within the company. This
will help to determine the problem areas of the company which would
need greater attention inorder to uphold the market.
9
LIMITATIONS
Utmost care has been taken to ensure the authenticity of the data,
and wherever possible the up-to-date information has been
incorporated. The following are limitations & drawbacks of research
study:
Short time span:
Studying the branding strategies of the entire industry in such a short
span of time was not possible. Hence, only one company in the FMCG
sector could be touched upon. The findings relate to only one
company and not the entire industry.
Insufficient Information:
Due to the unwillingness of the company to give out its data, the
report had to be prepared on the basis of secondary information and
data collection.
10
INTRODUCTION
What is a brand?
Branding has been around for centuries as it means “to distinguish the
goods of one producer from those of another”. In fact, the word brand
is derived from the Old Norse word brand, which means “to burn,” as
brands were and still are the means by which owners of livestock mark
their animals to identify them. According to the American Marketing
Association (AMA), brand is the term, sign, symbol, design or
combination of them, intended to differentiate the goods and services
of one seller from those of another.
It should be recognized that many practicing managers, however,
refer to a brand as more than that—defining a brand in terms of
having actually created a certain amount of awareness, reputation,
prominence, and so on in the marketplace. In some sense, a
distinction can thus be made between the AMA definition of a ‘small-b
brand’ and the industry practice of a ‘big-b brand’—that is, a ‘brand’
versus a ‘Brand’. It is important to recognize this distinction because
disagreements about branding principles or guidelines often revolve
around the definition of what is meant by a “brand.”
11
The names given to products come in many different forms. There are
brand names based on people (e.g., Estee Lauder cosmetics Porsche
automobiles, and Orville Redenbacher popcorn), places (e.g., Santé
Fe cologne, Chryslefs New Yorker automobile, and British Airways),
animals or birds (e.g. Mustang automobiles, Dove soap, and
Greyhound buses), or other things or objects (e.g., Apple computers,
Shell gasoline, and Carnation evaporated milk). There are brand
names that use words with inherent product meaning (e.g., Lean
Cuisine. Justjuice, and Ticketron) or that suggest important attributes
or benefits (e.g., Diehard auto batteries, Mop & G floor cleaner, and
Beautyrest mattresses). There are brand names that are made up and
include pre-fixes and suffixes that sound scientific, natural, or
prestigious (e.g., Intel microprocessors, Lexus automobiles, or Compaq
computers). Similarly, other brand elements, such as brand logos and
symbols, may be based on people, places, and things, abstract
images, and so on in different ways. In sum, in creating a brand,
marketers have many choices over the number and nature of the
brand elements they choose to identify their products.
Brands versus Products
12
It is important to contrast a brand and a product. According to Phillip
Kotler, a product is anything that can be offered to a market for
attention, acquisition, use, or consumption that might satisfy a need or
want. Thus, a product may be a physical good (e.g., cereal, tennis
racquet, or automobile), service (e.g., an airline, bank, or insurance
company), retail store (e.g., a department store, specialty store, or
supermarket), person (e.g., a political figure, entertainer, or
professional athlete), organization (e.g., a nonprofit organization,
trade organization, or arts group), place (e.g., a city, state, or country),
or idea (e.g., a political or social cause).
Kotler defines five levels to a product:
1. The core benefit level is the fundamental need or want that
consumers satisfy by consuming the product or service.
2. The generic product level is a basic version of the product
containing only those attributes or characteristics absolutely
necessary for its functioning but with no distinguishing features.
This is basically a stripped-down, no-frills version of the product
that adequately performs the product function.
3. The expected product level is a set of attributes or
characteristics that buyers normally expect and agree to when
they purchase a product.
4. The augmented product level includes additional product
attributes, benefits, or related s vices that distinguish the
product from competitors.
5. The potential product level includes all of the augmentations
and transformations that a product might ultimately undergo in
the future.
13
Kotler notes that competition within many markets essentially takes
place at the product augmentation level because most firms can
successfully build satisfactory products at the expected product level.
Another well-respected marketing academic, Harvard’s Ted Levitt,
argues that the new competition is not between what companies
produce in their factories bin between what they add to their factory
output in the form of packaging, services, advertising, customer
advice, financing, delivery arrangements, warehousing, and other
things that people value.”
A brand is therefore a product, but one that adds others dimensions
that differentiate it in some way from other products designed to
satisfy the same need. These differences may be rational and tangible
– related to product performance of the brand – or more symbolic,
emotional and intangible – related to what the brand presents.
More specifically, what distinguishes a brand from its unbranded
commodity counterpart and gives it equity is the sum total of
consumers’ perceptions and feelings about the product s attributes
and how they perform about the brand name and what it stands for,
and about the company associated with the brand.
Extending our previous example, a branded product may be a physical
good (e.g., Kellogg’s Corn Flakes cereal, Prince Tennis racquets, or
Ford Taurus automobiles), a service (e.g., United Airlines, Bank of
America, or Allstate insurance), and a store (e.g., Bloomingdale’s
department store, Body Shop specialty store, or Safeway
supermarket). A person (e.g., Bill Clinton, Julia Roberts, or Michael
Jordan), a place (e.g.. the city of London. state of California. or country
of Australia). an organization (e.g., the Red Cross, American
14
Automobile Association, or the Rolling Stones), or an idea (e.g.,
abortion rights, free trade, or freedom of speech).
Some brands create competitive advantages with product
performance. For example brands such as Gillette, Mercedes, Sony,
etc. Others have been leaders in their product categories for decades,
due, in part to continual innovation. Steady investments in research
and development have produced leading-edge products, and
sophisticated mass marketing practices have ensured rapid adoption
of new technologies in the consumer market. Other brands create
competitive advantages through non- product-related means. For
example, Coca-Cola, Calvin Klein, Chanel No.5, Marlboro, and others
have become leaders in their product categories by understanding
consumer motivations and desires and creating relevant and
appealing images surrounding their products. Often these intangible
image associations may be the only way to distinguish different
brands in a product category.
Brands, especially strong ones, have a number of different types of
associations, and marketers must account for all of them in making
marketing decision. Not only are there many different types of
associations to link to the brand, there are also many different means
to create them. The entire marketing program can contribute to
consumers’ understanding of the brand and how they value it.
As Interbrand’s John Murphy puts it:
Creating a successful brand entails blending all these various
elements together in a unique way—the product or service has to be
of high quality and appropriate to consumer needs, the brand name
must be appealing and in tune with the consumer’s perceptions of the
15
product, the packaging, promo- lion, pricing and all other elements
must similarly meet the tests of appropriateness, appeal, and
differentiation.
By creating perceived differences among products through branding
and developing a loyal consumer franchise, marketers create value
that can translate to financial profits for the firm. The reality is that the
most valuable assets that many firms- have may not be tangible
assets, such as plants, equipment, and real estate, but intangible
assets such as management skills, marketing, financial, and
operations expertise, and, most important, the brands themselves.
Thus, a brand is a valued intangible asset that needs to be handled
carefully.
Why do brands matter?
An obvious question is, why are brands important? What functions do
they perform that make them so valuable to marketers? One can take
a couple of perspectives to uncover the value of brands to both
consumers and firms themselves.
Consumers
As with the term product, the term consumer is used broadly to
encompass all types of customers, including individuals as well as
organizations. To consumers, brands provide important functions.
Brands identify the source or maker of a product and allow consumers
16
to assign responsibility to a particular manufacturer or distributor.
Most important, brands take on special meaning to consumers.
Because of past experiences with the product and its marketing
program over the years, consumers learn about brands. They find out
which brands satisfy their needs and which ones do not. As a result,
brands provide a shorthand device or means of simplification for their
product decisions.
If consumers recognize a brand and have some knowledge about it,
then they do not have to engage in a lot of additional thought or
processing of information W make a product decision. Thus, from an
economic perspective, brands allow consumers to lower search costs
for products both internally (in terms of how much they -have to think)
and externally (in terms of how much they have to look around).
Based on what they already know about the brand—its quality,
product characteristics, and so forth— consumers can make
assumptions and form reasonable expectations about what they may
not know about the brand.
The meaning imbued in brands can be quite profound. The
relationship between a brand and the consumer can be seen as a type
of bond or pact. Consumers offer their trust and loyalty with the
implicit understanding that the brand will behave in certain ways and
provide them utility through consistent product performance and
appropriate pricing, promotion, and distribution program and actions.
To the extent that consumers realize advantages and benefits from
purchasing the brand, and as long as they derive satisfaction from
product consumption, they are likely to continue to buy it.
These benefits may not be purely functional in nature. Brands can
serve as symbolic devices, allowing consumers to project their self-
17
image. Certain brands are associated with being used by certain types
of people and thus reflect different values or traits. Consuming such
products is a means by which consumers can communicate to others
—or even to themselves—the type of person they are or would like to
be, Pulitzer Prize—winning author Daniel Boorstein asserts that, for
many people, brands serve the function that fraternal, religious, and
service organizations used to serve—to help people define who they
are and then help people communicate that definition to others.
As Harvard’s Susan Fournier notes:
Relationships with mass [market] brands can soothe the “empty
selves” left behind by society’s abandonment of tradition and
community and provide stable anchors in an otherwise changing
world. The formation and maintenance of brand-product relationships
serve many culturally-supported roles within postmodern society.
Brands can also play a significant role in signaling certain product
characteristics to consumers. Researchers have classified products
and their associated attributes or benefits into three major categories:
search goods, experience goods, and credence goods. With search
goods, product attributes can be evaluated by visual inspection (e.g.,
the sturdiness, size, color, style, weight, and ingredient composition of
a product). With experience goods, product attributes—potentially
equally important—cannot be assessed so easily by inspection, and
actual product trial and experience is necessary (e.g., as with
durability, service quality, safety, and ease of handling or use). With
credence goods, product attributes may be rarely learned insurance
coverage). Because of the difficulty in assessing and interpreting
product attributes and benefits with experience and credence goods,
brands may be particularly important signals of quality and other
characteristics to consumers for these type of products.
18
Brands can reduce the risks in product decisions. Consumers may
perceive many different types of risks in buying and consuming a
product:
Functional risk: The product does not perform up to expectations
Physical risk: The product poses a threat to the physical well-being
or health of the user or others
Financial risk: The product is not worth the price paid
Social risk: The product results in embarrassment from others
Psychological risk: The product affects the mental well-being of the
user
Time risk: The failure of the product results in an opportunity cost
of finding another satisfactory product
Although there are a number of different means by which consumers
band these risks. Certainly one way in which consumers cope is to buy
well known brands, especially those brands with which consumers
have had favorable past experiences. Thus, brands can be a very
important risk-handling device, especially in business-to-business -
settings where these risks can sometimes have quite profound
implications.
In summary, to consumers, the special meaning that brands take on
can change their perceptions and experiences with a product. The
identical product may be evaluated differently by an individual or
organization depending on the brand identification or attribution it is
given. Brands take on unique, personal meanings to consumers that
facilitate their day-to-day activities and enrich their lives. A
consumers’ lives become more complicated, rushed, and time starved,
the ability of a brand to simplify decision making and reduce risk is
invaluable.
19
Importance of Brand…
The brand of a company is created by the company and its customers
together. The company has to make clear through its brand the
promise it makes to its customers, based on the strategies and vision
for the future of its business and products. It is vital that the company
fully comprehends exactly what the customers expect from the brand,
and that it continually lives up to these expectations.
The aim of brand management is to create a brand that will build this
long-term relationship - an unshakeable bond - between the company
and its customers.
20
Source:
http://www.hakuhodo-bc.co.jp/english/knowledge/brand.html
21
What are the benefits of a strong
brand?
If there is no obvious difference between the products or services of
different companies and their prices are the same, customers will be
attracted to the stronger brand. Furthermore, a strong brand can be
sold at a higher premium price and is thus a powerful way to escape
price competition. A strong brand attracts loyal customers who
repeatedly purchase the same brand, and it can maximize the
effectiveness of marketing activities. A strong brand increases
corporate profits over the long term, enhancing the overall corporate
value.
A cycle of benefits of customers, shareholders and employees
When the brand creates a firm bond between the customers and the
company, corporate profitability is enhanced. This will boost the value
22
of the company for the stockholders and will be a unifying force for the
employees, thus contributing to further profitability - the result is a
positive cycle that benefits everyone. We call this the Brand Power
Cycle. Corporate brands in particular must go even further than the
relationship between the company and the customer - the relationship
with the stockholders and employees given in this cycle is also
extremely important.
A unifying force of group management
As a result of mergers, decentralization and the formation of holding
companies, there is often a situation where several companies share
the same brand. In this case, the brand becomes a unifying force for
the corporate group that transcends the different areas of business or
organizational structure of the companies.
As M&A activity and restructuring become increasingly common, it is
likely that employees will no longer be unified by the conventional
sense of belonging to a company. Rather, they will have to share a
common recognition of the promise made by the brand.
23
Source:
http://www.hakuhodo-bc.co.jp/english/knowledge/bring.html
24
How is a strong brand created?
The vital first step towards creating a strong brand is for the company
to determine what specific values the brand will offer its customers,
both now and in the future. To help our clients do this, Hakuhodo
Brand Consulting has developed the Brand Fan. This is a framework to
break down the values of a brand into their constituent elements.
Introduce Brand Management
25
Determining the values that the brand offer the customer, is only the
start of the branding process. In order to establish a bond with
customers and ensure long-term profitability, it is absolutely essential
that these values become an integral part of the company's strategy,
organization and business processes - in other words, the company
must introduce a system of brand management.
Source:
http://www.hakuhodo-bc.co.jp/english/knowledge/create.html
Brands versus ProductsIt is important to contrast a brand and a product, According to Phillip
Kotler, a well- regarded marketing academic, a product is anything
that can he offered to a market for attention, acquisition, use, or
consumption that might satisfy a need or want, Thus, a product may
26
be a physical good (e.g., a cereal, tennis racquet, or automobile),
service (e.g., an airline, bank, or insurance company), retail store
(e.g., a department store, specialty store, or supermarket), person
(e.g., a political figure, entertainer, or professional athlete),
organization (e.g., a nonprofit organization, trade organization, or arts
group), place (e.g.. a city, state, or country), or idea (e.g., a political or
social cause).
1. The core benefit level is the fundamental need or want that
consumers satisfy by consuming the product or service.
2. The generic product level is a basic version of the product
containing only those attributes or characteristics absolutely
necessary for its functioning but with no distinguishing features.
This is basically a stripped-down, no-frills version of the product
that adequately performs the product function.
3. The expected product level is a set of attributes or
characteristics that buyers normally expect and agree to when
they purchase a product.
4. The augmented product level includes additional product
attributes, benefits, or related s vices that distinguish the
product from competitors.
5. The potential product level includes all of the augmentations
and transformations that a product might ultimately undergo in
the future.
Kotler notes that competition within many markets essentially takes
place at the product augmentation level because most firms can
successfully build satisfactory products at the expected product level.
Another well-respected marketing academic, Harvard’s Ted Levitt,
concurs and argues that the new competition is not between what
companies produce in their factories bin
27
between what they add to their factory output in the form of
packaging, services, advertising, customer advice, financing, delivery
arrangements, warehousing, and other things that people value.”
A brand is therefore a product, but one that adds others dimensions
that differentiate it in some way from other products designed to
satisfy the same need. These differences may be rational and tangible
– related to product performance of the brand – or more symbolic,
emotional and intangible – related to what the brand presents. One
marketing observer put it this way:
More specifically, what distinguishes a brand from its unbranded
commodity counterpart and gives it equity is the sum total of
consumers’ perceptions and feelings about the product s attributes
and how they perform about the brand name and what it stands for,
and about the company associated with the brand.
Extending our previous example, a branded product may be a physical
good (e.g., Kellogg’s Corn Flakes cereal, Prince tennis racquets, or
Ford Taurus automobiles), a service (e.g., United Airlines, Bank of
America, or Allstate insurance), a store (e.g., Bloomingdale’s
department store, Body Shop specialty store, or Safeway
supermarket). a person (e.g., Bill Clinton, Julia Roberts, or Michael
Jordan), a place (e.g.. the city of London. state of California. or country
of Australia). an organization (e.g., the Red Cross, American
Automobile Association, or the Rolling Stones), or an idea (e.g.,
abortion rights, free trade, or freedom of speech).
Some brands create competitive advantages with product
performance. For example brands such as Gillette, Mercedes, Sony
and others have been leaders in their product categories for decades,
28
due, in part to continual innovation. Steady investments in research
and development have produced Leading-edge products, and
sophisticated mass marketing practices have ensured rapid adoption
of new technologies in the consumer market. Other brands create
competitive advantages through non- product-related means. For
example, Coca-Cola, Calvin Klein, Chanel No.5, Marlboro, and others
have become leaders in their product categories by understanding
consumer motivations and desires and creating relevant and
appealing images surrounding their products. Often these intangible
image associations may be the only way to distinguish different
brands in a product category.
Brands, especially strong ones, have a number of different types of
associations, and marketers must account for all of them in making
marketing decision. The marketers behind son brands have learned
this lesson the hard way Branding Brief 1 describes the problems
Coca-Cola encountered in the introduction of “New Coke” when they
failed to account for all of the different aspects of the Coca-Cola brand
image.
Not only are there many different types of associations to link to the
brand, there are also many different means to create them. The entire
marketing program can contribute to consumers’ understanding of the
brand and how they value it. As Interbrand’s John Murphy puts it:
Creating a successful brand entails blending all these various
elements together in a unique way—the product or service has to be
of high quality and appropriate to consumer needs, the brand name
must be appealing and in tune with the consumer’s perceptions of the
product, the packaging, promo- lion, pricing and all other elements
29
must similarly meet the tests of appropriateness, appeal, and
differentiation.
By creating perceived differences among products through branding
and developing a loyal consumer franchise, marketers create value
that can translate to financial profits for the firm. The reality is that the
most valuable assets that many firms- have may not be tangible
assets, such as plants, equipment, and real estate, but intangible
assets such as management skills, marketing, financial, and
operations expertise, and, most important, the brands themselves
Thus, a brand is a valued intangible asset that needs to be handled
carefully.
CAD BURY INDIA LTD.
Brand Building
Since its inception, Cadbury India has stayed ahead thanks to its
constant marketing initiatives that have at all points in time
understood the needs of and opportunities in a changing nation.
30
The '60s was a decade which saw the launch of brands that are etched
in the hearts of generations of Indians - Tiffins, Nut Butterscotch,
Caramels, Crackle, 5 Star and Gems. It was a strategy that introduced
consumers to a variety of tastes and product forms leading to a rapid
increase in chocolate consumption.
Cadbury's Eclairs was launched in 1972, at the then princely sum of
0.25p and was an instant hit. It continues to be one of the biggest
brands in the Cadbury portfolio and offers the lowest price point at
which consumers can experience the real taste of chocolate.
In the years that followed, Cadbury invested in technology and made
an impact through innovative packaging. This decade experienced a
continuous growth in volumes as Cadbury launched a flurry of brands
with different pack sizes, at various price points. The now ubiquitous
Sheet Metal Dispenser seen on cash counters of thousands of shops
for dispensing chocolates was an innovation that helped brand the
colour purple in the minds of the Indian consumer.
In the 90's Cadbury realised both the scope and the need to expand
the market. Hitherto perceived only as a children's product, Cadbury
'universalised' the chocolate market. The multi-award winning
advertising campaign - 'The Real Taste of Life' - was launched,
capturing the childlike spontaneity in every adult.
Cadbury 5 Star with its 'Reach for the Stars' campaign targeted the
youth, offering them a mind and body charge. While pre-empting
competition, Cadbury Perk - the light chocolate snack - pushed
31
chocolates into the wider area of snacking by promising 'Thodi Si Pet
Pooja' anytime, anywhere.
Faced with rapidly changing markets and increased competition,
Cadbury launched Truffle to hit the high ground of great tasting
chocolate. This was followed by Picnic in 1998 which with its unique,
multi-ingredient construct, promises to take chocolates straight into
the realm of snacks.
With the launch of Trebor Googly, the tangy, fizzy candy, Cadbury took
the market by surprise and marked the entry of Trebor into the fast
growing Indian sugar confectionery market. The extension of Googly
to a Mint flavour reinforces Cadbury's commitment to establish the
Trebor name as a strong player in the value added sugar
confectionery market.
For 50 years, Cadbury's has successfully played the role of market
leader and market maker by building brands that have a large base of
loyal consumers. The last few years especially, have seen the
company invest heavily in the entire value chain to successfully
combat competition and continually move the market to the next
stage of evolution.
32
CHOCOLATE MARKET IN INDIA
The chocolate market in India was not expanding fast enough. The
demand in for cocoa products and chocolates doubled in content in
three years from 2004-2006.
Production of chocolates
33
Market share of different companies
Age wise market segmentation
34
Region wise market segmentation
35
CONFECTIONARY MARKET ENVIRONMENT
IN INDIA
The confectionary market is valued at around Rs. 10 billion.
Product Variation
Type Share %
Plain Candies 43
Toffees 39
Adult Candies 9
Gems 3
Eclairs 6
Market growth rates
36
Age wise market segmentation
37
`Region wise market segmentation
38
Demand for confectionary items
39
Market share of different companies
40
CONCLUSION & ANALYSIS
Fifty years ago, the real taste of chocolate as we know it today, landed
on Indian shores. An event that carried forward the entrepreneurship
was a vision that was born as far back as 1824, when John Cadbury set
up shop in Birmingham (UK) to sell among other things - his own cocoa
concoction. From these modest beginnings emerged Cadbury
Schweppes - that is today the leading manufacturer of confectionery
and beverages in the United Kingdom. It is a company that has its
presence in over 200 countries worldwide and has made the name
'Cadbury' synonymous with cocoa products in countries across the
planet.
This is the brand that came to India in 1947 - to a nation that was in its
infancy, a market that was ready for the world and a people that were
open to new ideas, new products.
Within a year of being set up as a trading concern, Cadbury Fry India
was incorporated as a Private Limited company, set up for processing
imported chocolates and Bournvita. The same year saw the launch of
Cadbury's Milk Chocolate - a brand which till today defines the taste of
chocolate for millions of Indians.
Through 50 years of investment in capital and marketing, the scale
and scope of our operations has expanded to cover a range of brands
in the chocolate, sugar confectionery and malted food drinks
41
segments. We have a majority share in the Indian chocolate market
and a significant presence in sugar confectionery and food drinks.
Today Cadbury India Ltd., a subsidiary of Cadbury Schweppes employs
over 2000 people across the country and operates in one of the
fastest growing chocolate markets for the Cadbury Schweppes group
across the globe.
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PRODUCT MIX
A product mix is the set of all the products and items that a particular
sell a offers for sale.
PRODUCT MIX
Chocolates Sugar confectionaries Beverages
Dairy Milk Nutties Bournvita
Fruit & Nut Gems Drinking Chocolate
Creamy Bar Tiffins Cocoa Powder
Crackle Eclairs Crush
Roast Almond Googly Indian Tonic Water
Perk Frutus Canada Dry
5 Star Gollums
Picnic Chocobix
Relish
Chocki
Temptation
Surprise
Celebration
Product Width: 3
Product Length: 27
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Product Depth: 38
PRODUCT LINE LENGTH
Line Stretching:
It is the lengthening of the product line when there is addition of new
products in the current range.
Two-way stretch:
Cadbury is continuously added one product each year in their product
line. This is included in their marketing strategy.
Up-market stretch:
This is done when a company wishes to enter into the upper and of the
market for more growth and also to position themselves as full line
manufactures.
Cadbury has done up-market stretching by adding a new chocolates
for upper market segments i.e. Temptation. Cadbury has Cadbury gold
chocolate for upper market.
Down-market stretching:
It is done when a company wishes to enter into the lower market
segment for more market share or to tie up lower end competitors.
Cadbury has done down market stretching also by introducing
chocolates at lower prices and adding some sugar confectionaries like
Perk Slim, Sweets like Eclairs.
Line Filling
44
A product line can also be lengthened by adding more items within the
present range. Cadbury has done line filling by adding the missing
items in the line. They have launched a new chocolate Perk as to fill
the product line as the lower segment was not touched by Cadbury’s.
Line Modernization
Product lines needs to be modernized as people are not always going
to like your product. Line modernization is done by continuously
improving your product. Cadbury’s has done line modernization by
adding some nutritious ingredients such as Cashewnuts, Peanuts and
Almonds to their normal chocolates. Example: Fruit & Nut, Roasted
Almond.
Line Pruning
Some times a company do line pruning of the products which the
company feels are not making profits. Line pruning is done to remove
the weak items from the product line. Cadbury’s has done line pruning
by removing its weak products. E.g. Cadbury’s launched ice-creams,
which could not perform well in the market. They were not accepted
by the consumers so what Cadbury did was they sold the products to
Brook Bond. E.g. Dollops, Lopstop.
COMMUNICATION
45
The Brand communication involves five major modes of
communication.
Advertising
Sales promotion
Public relation and publicity
Personal selling
Direct marketing
Out of all these types Cadbury is doing advertising, sales promotion,
public relation and publicity.
Advertising
Cadbury is into heavy advertising. They have positioned
themselves from kids segment to adult segment on the basis of
advertising only. The famous campaign “Khane walon ko Khane ka
Bahana Chahiye” has made them earn huge profits as Cadbury’s
chocolates are np longer considered to be only nmeant for kids. It is
considered as a sweet meant for the indulgence of all people
irrespective of their age, sex, status, lifestyle, etc.
Another advertisement “kya swad hai jindgi mein” became very
popular. Cadbury has always been a great advertising spender. Its
product, Bournvita is ranked at number 58 with 18 points.
Bournvita as a brand has fallen steadily over the years, and its now
down to 58. Bournvita’s decline could perhaps be as a result of the
launch of Nestle’s Milo. Bournvita looses out dramatically with
house wives, a segment it ought to be strong in. However, it finds
46
growing favour among adult females. Generation Y females are
becoming more health conscious.
The brand still retains, it’s up market, youngish skew, as the segment
wise analysis makes it evident. But what could have possibly gone
wrong with a brand that has been so heavily advertised. After all, the
brands relationship with its ad agency O&M has famously been the
envy of many marketers in India who have had to struggle to get all
brand managers (in the agency and the company) on to the same
wavelength.
Well, perhaps its performance earlier had been something of a dream
run. The latest T.V. ads campaign, which tries to replace traditional
sweets at big family occasions, has its adline as “khane walon ko
khane ka bahana chahiye”.
Perk positioning is that of a light snack food as opposed to a chocolate
By virtue of the product 痴 positioning, Perk is pitted against KitKat,
from the Nestle stable. Currently, Perk is 0.6 points behind KitKat, but
Cadbury India expects to Perk to rise as in most of Perk advertising,
lighthearted irreverence is the mainstay in the current campaign too.
Perk is the lead youth brand in Cadbury portfolio. It is a lighthearted
anytime, anywhere snacks for the youth. The charming grow faster
even outpace the market growth rate in the post-relaunch
phase.ocolate.
Perk was launched in three flavour extensions Mango, Strawberry and
Mint in an attempt to enhance the brands experience and consolidate
its youthful. The objective of the campaign is simple; announce the
47
relaunch of Perk and communicate what new about the brand. Things
like how Perk is now lighter, crispier, available at a price point of Rs 5,
is in slim format and is coated in real chocolate, says Govind Pandey,
vice-president, O&M.
Cadbury is doing Electronic as well as print advertising it is publishing
brouchers and booklets. Cadbury is printing bill boards and short
posters and leaflets.
Sales Promotion
In a bid to trigger chocolate penetration, confectionery major Cadbury
India Ltd is now rolling out a slew of customised marketing and
communication initiatives at the retail end. According to the company,
the key thrust areas to speed up brand mobility at the retail level will
incorporate exploring and foraying into non-traditional channels of
frequent consumer visits, innovative point-of-sale and point-of-
purchase initiatives, unique merchandising plans and newer formats of
product delivery.
Says Mr Vidyut Arte, director, sales & exports, Cadbury India Ltd:
“Continuous research is done, nationally and internationally, to figure
48
out how, where and when consumers purchase our chocolates. And
our retail strategy is based on studies like these”.
According to Mr Arte, in the case of Celebrations, the bulk of the
communication to the consumers was done at various retail outlets.
Accordingly, there were innovative dispensers, premium window
displays and message cards that were strategically placed to convey
what the brand stood for. “Early reports indicate that the initiative has
been a success”, says Mr Arte.
Along with such initiatives at the point-of-sale level, Mr Arte reasons
that the company’s endeavor is also to have a creative design of
Cadbury that will straddle all media, so that consumers see a unifying
creative promise. This design could include the colour purple,
corporate or brand logos, icons and the associated imagery. The
move, according to the company, is aimed at ensuring an overall
visual consistency for the brands. “We are tailoring this design in
communication strategies to be targeted at specific occasions,
consumer profiles and retail segments”, he explains.
Following are the objectives of the merchandising strategy that Mr.
Arte outlines:
Communicate values of chocolate at the highest experiential level
Reinforce Cadbury’s ownership of that experience
Establish and drive category relevance, and concurrently Cadbury’s
dominant position
Motivate and engage consumers with desire and anticipation to
participate in the category
49
Cadbury rolls out slew of retail, communication
initiatives
In a bid to trigger chocolate penetration, confectionery major Cadbury
India Ltd is now rolling out a slew of customized marketing and
communication initiatives at the retail end. According to the company,
the key thrust areas to speed up brand mobility at the retail level will
incorporate exploring and foraying into non-traditional channels of
frequent consumer visits, innovative point-of-sale and point-of-
purchase initiatives, unique merchandising plans and newer formats of
product delivery. Says Mr. Vidyut Arte, director, sales & exports,
Cadbury India Ltd: “Continuous research is done, nationally and
internationally, to figure out how, where and when consumers
purchase our chocolates. And our retail strategy is based on studies
like these”. Take for instance, the point-of-sale (POS) initiative that the
company has undertaken for brands like Chocki and Celebrations.
According to Mr. Arte, in the case of Celebrations, the bulk of the
communication to the consumers was done at various retail outlets.
Accordingly, there were innovative dispensers, premium window
displays and message cards that were strategically placed to convey
what the brand stood for. “Early reports indicate that the initiative has
been a success”, says Mr. Arte. Further, as part of the point-of-sale
initiative for brands like Chocki, a huge retail exercise is being
undertaken especially near schools as children are the core target
group for the product. “In fact, most brand launches will now have a
full-fledged retail package”, says Mr Arte. Explaining the rationale
behind these initiatives, informs Mr Arte: “Point-of-sale plays a key
role in promoting impulse product sales. This is especially true in
chocolates, which are bought largely on impulse and are meant for
out-of-home consumption”. According to Mr. Arte, increasingly, point-
50
of-sale will be contributing to such brand-building initiatives. Along
with such initiatives at the point-of-sale level, Mr. Arte reasons that the
company’s endeavor is also to have a creative design of Cadbury that
will straddle all media, so that consumers see a unifying creative
promise.
This design could include the color purple, corporate or brand logos,
icons and the associated imagery. The move, according to the
company, is aimed at ensuring an overall visual consistency for the
brands. “We are tailoring this design in communication strategies to
be targeted at specific occasions, consumer profiles and retail
segments”, he explains. Following are the objectives of the
merchandising strategy that Mr. Arte outlines: Communicate values of
chocolate at the highest experiential level Reinforce Cadbury’s
ownership of that experience Establish and drive category relevance,
and concurrently Cadbury’s dominant position Motivate and engage
consumers with desire and anticipation to participate in the category
Further, the company is also looking at foraying into non-traditional
channels where the consumers congregate and there is a huge
opportunity for driving impulse purchase. “And Cadbury’s Dairy Milk as
our lead brand will drive the presence in such non-traditional outlets”,
explains Mr. Arte. In addition to such merchandising strategies, the
company is also extensively using innovative PET jars, display-cum-
dispensing outers, hangers, and sheet metal dispensers for grouping
and displaying the cluster of products. Adds Mr. Arte: “We developed
and rolled out customized top-end dispensers in large numbers,
customized for each major retail channel”. According to the company,
it is also identifying the usual POP and POS material that needs to be
dispensed with. “We are now doing away with conventional bottle
coolers, as these are not effective for our category”, he says. To align
51
such initiatives with a tactical action plan on the shelves, the company
has rolled out the “Choose Cadbury” initiative. Explains Mr Arte: “This
creative idea found expression across point-of-sale material, in-shop
visibility, shop-front signages and outdoor”.
The execution typically involves “appetite-appeal” visuals as a
stimulus, followed by a call to action. Commenting on the shopfloor
tools to leverage the brands in the impulse category market, Mr Arte
says: “The entire POS strategy is shifting, the focus now is to provide
dispensing and display solutions to outlets rather then just some
ordinary POS material”. The emphasis is now clearly on channel-
specific solutions and mass customisation. “This kind of mass
customisation is helping break clutter and gain saliency for our
brands”, he adds. The company believes that the strategic brand
visibility on the shelves will remain the key objective to grow and gain
brand leadership in the impulse market. According to Mr Arte, “the
future of retail visibility seems to be one of continuous innovation. The
potential is huge, especially for impulse products and can be exploited
through continuous innovation”. In essence, the company believes
that through such integrated strategies at retail, they are pitching to
garner a bigger bite of the market share in this competitive chocolate
segment.
Trade Marketing
The Cadbury Sales and Distribution network directly services over 3.5
Lakh dealers across the country, once a week. Confectionery purchase
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being impulse led, demands eye catching, on-the-cash-counter
visibility in as many of these outlets as possible.
In order to best meet the dealer's display and vending needs, the
company has invested in an array of inputs to the trade:
1. The Sheet Metal Dispenser: This ubiquitous, purple salesperson
for Cadbury is found in almost any shop stocking our chocolates.
While being on the cash counter, it's unique design offers
visibility, ease of vending and protection from the elements.
Available in various sizes, it can meet the needs of any outlet.
This 'first' from Cadbury, has become so popular, today it is the
standard dispenser design for all chocolate manufacturers.
2. Visicoolers: Come summer, visibility for chocolates drop as they
disappear into the refrigerator. In high throughput outlets, the
visicooler with a glass front not only maintains eye contact with
the consumer, but offers perfect chocolates throughout summer
as well.
3. Vending machines: First introduced in the country by Cadbury,
these impressive coin operated machines can be seen
dispensing chocolates in high traffic areas from the World Trade
Centre at Mumbai to New Delhi railway station.
4. Jars: Outlets like the neighborhood Paan shop have just enough
places for simple dispensers like jars. Attractive jars /
merchandising units in such shops ensure places of pride for
Cadbury.
5. Star Outlets: Key Cadbury outlets across the country are given a
special status, with discounts given in lieu of solus vending and
display space for all Cadbury products.
53
6. Amusement Parks: Cadbury's presence in the premier
amusement parks such as Esselworld and Appu Ghar adds to the
magic of chocolates by 'coming alive' for the consumer.
Another strategy adopted by Cadbury to boost sales and improve
brand visibility is offering consumption opportunities at various price
points. The company now also has a presence in the small-pack
segment and the premium segment (Cadbury Gold). The Cadbury
Dairy Milk classic tale series, with a story book in the pack, is targeted
at children.
The company is supporting the product launches with direct marketing
programmes and higher and focused adspend.
54
RECOMMENDATIONS
Cadbury has a very good brand recall & visibility in the market as per
the survey done and interviews taken. People do remember the brand
ambassador Amitabh Bacchan with “Pappu paas ho gaya”.
Lately, the company has reduced its T.V. ad frequency. Also, the no. of
hoardings, and billboards are found to be very less in the market
areas. Based on the interviews, it is recommended that the company
should concentrate on more number of Print & TV Advertisments. The
frequency of the ads should be increased. Moreover, in order to
further increase its visibility, the company should also focus on more
of showcase advertising in retails shops and spend more on hoardings
and billboards in the market areas.
55
APPENDIX
QUESTIONNAIRE:
1. Name
2. Age
3. What do you understand by the term "Branding”?
4. How do you rate brand visibility for Cadbury on a scale of 1-5?
5. Which is the advertisement that comes to your mind regarding
chocolates?
6. What do you think company should do to increase brand
visibility?
d.
a.
7. Do showcase advertisement in retail shop make a difference or
impact on you?
56
8. What is the impact of advertisement on the brand visibility &
brand image of any company?
57
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Branding balance meeting the challenges to commercial identity
author Ken Drawbaugh, 57-74 (2004), first edition
Briggs, Rex and Hollis, Nigel. “Advertising on the Web: Is There
Response Before Click-Through?” Journal of Advertising
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Duboff, Robert and Spaeth, Jim. Market Research Matters: Tools
and Techniques for Aligning Your Business; John Wiley & Sons,
Inc. 2000.
Hoffman, Howard S. “Statistics Explained.” The Animated
Software Company, 2001.
Kim, Peter. “Does Advertising Work: A Review of the Evidence”
The Journal of Consumer Marketing, 9, 4 (1992): 5-19.
Spaeth, Jim. “Brand Equity and Advertising; Lessons from Jimi
Hendrix.” Advertising Research Foundation, 1993.
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Strategic brand management building measuring and managing
brand equity, second edition, Kevin Lcne Keller, 3-41, 200-219
(2004) Published by Pearson Education (Singapore) Pvt. Ltd.
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