711. Brand and Brand Visibility (With Reference to Cadbury)

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


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.


commodity counterpart and gives it equity is the sum total of

consumers’ perceptions and feelings about the product s attributes



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

http://www.hakuhodo-bc.co.jp/english/knowledge/brand.html

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

http://www.hakuhodo-bc.co.jp/english/knowledge/bring.html

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

http://www.hakuhodo-bc.co.jp/english/knowledge/create.html

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


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:


commodity counterpart and gives it equity is the sum total of

consumers’ perceptions and feelings about the product s attributes



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.

42

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

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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

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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

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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

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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-

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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

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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.

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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.

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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.

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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?

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8. What is the impact of advertisement on the brand visibility &

brand image of any company?

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BIBLIOGRAPHY AND REFERENCES

A Framework for Marketing Management, Philip Kotler, 105-128

(2005), Published by Dorling Kindersley (India) Pvt. Ltd.,

Licensees of Pearson Edition in South Asia, Second Edition

Assael, Henry. Consumer Behavior and Marketing Action. 6th

Ed. South Western College Publishing, (1998): 104.

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

Research, 37, 2 (1997): 33-45.

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.

Website

http://www.netmba.com/marketing/brand/equity/

http://encarta.msn.com/encyclopedia_761564279_1/

Advertising.html


Advertising.html


Advertising.html


Advertising.html


Advertising.html

http://www.fcc.gov/bureaus/mass_media/informal/ad-study/


Advertising.html


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http://encarta.msn.com/encyclopedia_761564279_1/Advertising.html


http://www.fcc.gov/Bureaus/Mass_Media/Informal/ad-study/












711. Brand and Brand Visibility (With Reference to Cadbury)

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