Brand audit of cadbury dairy milk

8 August 2016

The journey of Cadbury started way back in the year 1905 from Bourneville, UK. But it came to Indian market in 1948. From the time it was introduced in India, Dairy Milk has been the market leader in the confectionery segment. It has average daily sales of 1 Million bars. The reason that our group chose Cadbury Dairy Milk for the Brand Audit is that it provides us with ample scope to study the various aspects of Branding like Communication Strategies, Innovative Ad Campaigns, and Emotional Connect with Consumers, Brand Repositioning, and Rebranding etc… We will study the evolution of Cadbury Dairy Milk by focusing on following Aspects:

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In 1824, John Cadbury opened a shop in Birmingham. This one-man business, trading mainly in Tea & Coffee was to be the foundation of Cadbury Limited. For over 100 years Cadbury was a family business. In 1943 non family directors were appointed. In 1847, the enterprise had prospered to a large factory in Bridge Street, Birmingham. John Cadbury took his brother Benjamin into partnership and the family business became Cadbury Brothers Birmingham. The business moved to Bourneville after outgrowing the Bridge Street Factory.

The Workforce had risen up to 200 after 32 years at Bridge Street. After the death of two brothers in 1899, the company was privatized. It entered the era of scientific management; it introduced new ideas for their department like: On 2nd February, Kraft Foods took over 71% shares of Cadbury. They acquired it totally. But still Cadbury was on top in the market. This acquisition did not changed people’s mind and their craze for Cadbury Dairy Milk. OPERATIONS Cadbury’s operations are carried out in many countries. Few of them are: BRAND ELEMENTS

Dairy Milk has been meticulously built around the world by Cadbury. It has been able to sustain a strong position in the market. There are many branding elements which have resulted into consistent result of its success. Few core Branding Elements are as given below: Not only the above three, But there are many more elements due to which the consistent Branding of Dairy Milk is so very popular. Its different Advertisements, its punch lines etc… It has always kept a strong association with Milk, with slogans such as “a glass and half of full cream milk in every half pound.

And also advertisement which featured a glass of milk pouring out and forming the Dairy Milk bar. Also the ad campaigns are also the important element of Dairy Milk. It made chocolate an eating habit among the consumers, especially the adults. Long back it was a belief that chocolate is only for kids. But Dairy Milk changed this belief. Also they changed the trend of Sweets (Mithai) during the occasions like Diwali, New Year etc… Dairy Milk brought a new trend that whether any occasion, Dairy Milk is best for all. It also gave some famous dialogues from the ads which people remember always.

They were also the core brand elements of Dairy Milk. Let us see them below: All these above dialogues were form the very famous and popular ad’s of Dairy Milk. By this ad they wanted to covey to the people that for eating Dairy Milk they do not have to wait for any occasion. They can just have it. Whether they are happy or Sad, But Dairy Milk can be taken in any of the mood. BRAND PORTFOLIO Worldwide In June 1905, Cadbury launched its first Dairy Milk bar, with a higher proportion of milk and it became the best selling product of the company by 1913. Fruit and Nut was introduced in 1928.

In 2003, Cadbury made Dairy Milk into a family brand by taking the brands like Caramel, Whole Nut, and Wispa and marketed them as the sub-brands of Dairy Milk. By 2006, there were 15 Dairy Milk sub-brands produced in UK including Shortcake Biscuit, Wafer, Orange Chips, Mint Chips, Crispies and Cream Egg. In following two years these brands were discontinued as they were not successful. Indian Market The Dairy Milk Brand alone accounts for approximately 33% of total Cadbury’s sales. It has made Cadbury the number one confectionery brand in the market. Currently in India, Dairy Milk has following sub-brands under its name.

They are; BRAND POSITIONING The Brand Positioning of Cadbury Dairy Milk in mid 90’s was that chocolate is not only for kids but also for adults. And to prove this they immediately released the very popular” Real Taste of Life” campaign , shifting the focus from “just for kids” to “ kid in all of us”. Let us see the Brand Positioning of Dairy Milk on segmentation bases on two main bases. And they are: Demographic Dairy Milk silk is little higher in cost compared to ordinary Dairy Milk, Fruit and Nut and Crackle. But still people love to have Dairy Milk.

Silk is the premium Brand of Dairy Milk Behavioral As we know that Dairy Milk is the only Brand who is the only one to promote chocolate as an important part of Festivals as well as it changed the mind sets of the people that chocolate is not only for kids but for all. The strategy to target adults was taken further with the help of a brand new positioning “Kuch Meetha Ho Jaye”. For Indians occasions and festivals have utmost importance and Dairy Milk rigorously focused on this point and set a new trend of having Dairy Milk in place of “Mithai” during the occasions. COMMUNICATION STRATEGY

Up to 2002, Cadbury was the one having 70 % market shares in chocolate industry. Out of which 30% was the Dairy Milk alone. This is because of constant re-invention of the brand & bombarding communication towards the consumers consistently to maintain the top position in mind recall in confectionery segment. Dairy Milk was awarded as No. 1 most trusted brand in Mumbai 2005 for the edition of Brand Equity’s most trusted Brand Survey. Dairy Milk targeted all the aspects as possible to get into the heart of all the people, of all age groups. For this they communicated with people through different Ad’s & Campaigns.

Let us see few of them below: Shubh Aarambh was one of successful campaigns of Dairy Milk. This means Auspicious Beginning. With this campaign they said that for whatever you start, start it with Dairy Milk and it will be successful. For this they chose the best to advertise: Amitabh Bacchhan. Tools for Communication Dairy Milk used different media options to communicate different campaigns and promote Dairy milk. They are: TV Advertisements is the most popular method for Dairy Milk to show their new campaigns to people so that they can more and more relate it with their personal lives.

They also have ground promotions in different malls. They arrange some contests also to promote their brand. DISTRIBUTION STRATEGY As we know that Dairy Milk holds 30% value share of chocolate market. The demand of chocolate is increasing day by day. And Dairy Milk is no. 1 in that race. Indian market & specifically where the penetration of chocolates is increasing, brings a need for efficiency in logistics and distribution. There is stiff competition in the confectionery market due to large exposure of foreign currency rate risk, mainly on account of import of cocoa beans, cocoa butter.

Cadbury Dairy Milk is easily available anywhere in the market. Cadbury’s success of proper distribution is their efficiency. PRICING STRATEGY Dairy Milk is positioned towards age group of 4-50, and thus the price is accordingly kept affordable. Also it is easily accessible to all categories. Price range starts from Rs. 5 to Rs. 20 in different sizes. Cadbury Dairy Milk fruit and nut starts from Rs. 30. Dairy Milk Silk is a premium brand and thus the price of it is little higher that is Rs. 50. COMPETITOR’S ANALYSIS In Indian Market, the main players in the confectionery market are Cadbury, Nestle, Candico, ITC and Parle.

Let us see the competitors of Cadbury Dairy Milk in detail below Company Founded in Brand Portfolio Kraft Foods 1903 Cadbury Dairy Milk & Variants, Eclairs, Bourn vita etc… Nestle 1860 Kitkat, Smarties Ferrero 1940 Rocher, Raffaelo, Nutella Amul 1945 Milk Chocolate, Fruit and Nut chocolate Candico 1997 Loco Poco Gum, Big Bubble ITC 2002(Confectionery Segment) Minto and Candy man Parle 1929 Melody, Mango Bite, Poppins, Kismi, Orange Candy POINT OF PARITY (POP) & POINT OF DIFFERENCE (POD) POP’s & POD’s OF CADBURY DAIRY MILK Point of Parity Point of Difference Chocolate manufacturing Legacy

Goodwill Variants such as Fruit & Nut, Dark Chocolate Emotional connect with customers Constant innovation in ads Generic name in Indian chocolate market Good quality products Campaigns targeting from kids to adults Association with milk Excellent distribution systems 2 Layer packaging Dairy Milk is the only one chocolate which says that in occasions also it can be used as sweet. BRAND EXPLORATORY Customer Knowledge Cadbury dairy Milk has been trying to get out of the image of” Just another chocolate” and become something special in the minds of the people.

They have also been trying to position themselves as chocolates for all age groups and not just kids. The campaign has successfully created a picture in the mind of the customers that Cadbury is not just a chocolate but means of celebrations. Sources of Brand Equity There are two main sources of Brand Equity and they are: Based on various search results, Cadbury’s Dairy Milk not only enjoys high level of Brand Awareness but unaided Brand Recall. This level of recall is generated when Dairy Milk enjoys The Top of the Mind Effect.

The Brand image of Cadbury Dairy Milk plays an important role in building the Brand Equity of Dairy Milk through the medium of unique brand associations. Right from Kuch Meetha Ho Jaye campaign to the recent Shubh Aarambh, Dairy Milk has managed to create strong, unique, and favorable brand associations in the minds of the consumers which is commendable. Brand Recall and Brand image are the strong supports that Dairy Milk has with its all time availability and attractive packaging which only adds to the Brand associations for the Dairy Milk and help build its Brand Equity.

Two more important sources of Brand Equity are: \ BRAND AMBASSADORS As we know that previously Dairy Milk was only considered as Chocolate, but their new campaign has changed this perception of consumers. As discussed above now Dairy Milk is considered as Traditional sweet of Indian culture(Mithai) which people give to their near and dear ones on the occasions and now they use Dairy Milk as sweet(Mithai). Brand Ambassador chosen for Dairy Milk is none other than Megastar Amitabh Bacchhan. He endorsed the brand so successfully that everyone loved the brand much more than they did.

The endorsement has successfully captured the Indian festivals like Rakshabandhan, Diwali, Wedding, Birthdays etc… Now people give Dairy Milk as token of love, care and affection to their friends and family. DAIRY MILK MENTAL MAP These three form the mental map of Dairy Milk which associates with them the different aspects. Let us see them in detail: CBBE MODEL BRAND MANTRA OF DAIRY MILK SWOT ANALYSIS Strength Weakness Dairy milk is owned by Cadbury which is a globally established brand name known for its manufacturing competency and leadership in innovation.

The recent acquisition of Cadbury by Kraft Foods may result in somewhat negative effect on the brand. Dairy Milk has been able to establish a clear and consistent Brand Image over the years. Dairy Milk is somewhat lacking in other emerging markets. It has strong command over its brand image in India and Europe But other places it is lacking. It offers quality product with innovations with crafted communication campaign Certain segment feel that price of Dairy Milk is high and compared to that Amul Milk chocolate is preferred.

Dairy Milk has huge command over its distribution network spanning across India. – Dairy Milk also enjoys a great Brand Recall value when comes to chocolates with Milk. – Threats Opportunities Increasing competition from international brands is biggest threat to Dairy Milk To introduce sugar free category is biggest opportunity for Dairy Milk. Highly price sensitive nature of the industry. Dairy Milk can innovate more by bringing international flavors so that is also gets an opportunity to compete with this threat as well. BRAND STRATEGIES

The marketing strategy that a business uses must reflect the objectives of the business as a whole. These strategies must therefore be consistent with the wider corporate objectives of the organization. Strategies are likely to be influenced by the attitudes of decision makers towards matters such as the desirability of risk and change. Such attitudes are influenced not only by the environment within which a business operates but also by the views of Managers and Directors and the culture of business itself. External influences also play a major role in any products advertising, its position in the market.

They range from consumers to press and media, and also health and safety laws. PEST Analysis will more clearly throw light on external environment and global factors that may affect Dairy Milk’s Business. This will give a quick and visual representation of the external pressures facing the business and their possible constraints on strategy. PEST means: Political Factors Cadbury at the time of finalizing any marketing strategy will have to think of different political factors regionally, nationally and internationally.

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