Praxis Business School

Brand Image Measurement of

Cadbury Dairy Milk
A report
submitted to

Prof. S. Govindrajan

In partial fulfillment of the requirements of the course

Product and Brand Management

On 20-08-09
By
Abhishek Das (B08002)
Nabila Azmatulla (B08018)
Parikshit Ghoshal (B08021)
Somnath Roy (B08032)

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 Executive Summary
The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K., but the
journey with chocolate lovers in India began in 1948. Currently Cadbury India
operates in five categories, which are Chocolate Confectionery, Milk Food Drinks,
Candy, Gum and Snacks category.

In the Chocolate Confectionery business, Cadbury has maintained its undisputed

leadership over the years. Some of the key brands are Cadbury Dairy Milk, 5
Star, Perk, Éclairs, Celebrations, Temptations and Gems. Cadbury enjoys a value
market share of over 70% - the highest Cadbury brand share in the world! Their
flagship brand Cadbury Dairy Milk is considered the "gold standard" for chocolates
in India. The pure taste of CDM defines the chocolate taste for the Indian consumer.

Earlier Cadbury Dairy Milk had positioned itself as a chocolate for kids . Later it was
repositioned as a chocolate meant for all age groups emphasizing on the children
hidden in us.

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

We used a questionnaire as a research instrument for our BAV Model. After

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

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

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 Table of Contents

SERIAL NO. CONTENTS PAGE NUMBER

1 History of Brand and its 4

evolution over time

Company Overview 4

Company History 5

Cadbury Dairy Milk 6

Positioning and Repositioning 6

2 Instrument of Data Collection for 8

Quantitative Research

Brand Asset Valuator 8

Data Collection 10

Questionnaire 11

Result and Analysis of BAV 13

3 Instrument of Data Collection for 20

Qualitative Research

Laddering 20

Data Collection 21

Hierarchical Value Map of 22

Chocolates

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 History of the Brand and its
Evolution over time

COMPANY OVERVIEW

Cadbury is a leading global confectionery company with an outstanding portfolio of

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

In India, Cadbury began its operations by importing chocolates. After 60 years of

existence, it today has five company-owned manufacturing facilities at Thane, Induri
(Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4
sales offices (New Delhi, Mumbai, Kolkota and Chennai). The corporate office is in
Mumbai.

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

Currently Cadbury India operates in five categories, which are Chocolate

Confectionery, Milk Food Drinks, Candy, Gum and Snacks category.

à In the Chocolate Confectionery business, Cadbury has maintained its

undisputed leadership over the years. Some of the key brands are Cadbury
Dairy Milk, 5 Star, Perk, Éclairs, Celebrations, Temptations and Gems.
Cadbury enjoys a value market share of over 70% - the highest Cadbury brand
share in the world! Their flagship brand Cadbury Dairy Milk is considered the
"gold standard" for chocolates in India. The pure taste of CDM defines the
chocolate taste for the Indian consumer.

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

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

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

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

COMPANY HISTORY

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

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

Cadbury and Schweppe merged in 1969 to form Cadbury Schweppes plc.

à Milk chocolate for eating was first made by Cadbury in 1897 by adding milk
powder paste to the dark chocolate recipe of cocoa mass, cocoa butter and
sugar.
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 à In 1905, Cadbury's top selling brand, Cadbury Dairy Milk, was launched.

à By 1913 Dairy Milk had become Cadbury's best selling line and in the mid
twenties Cadbury's Dairy Milk gained its status as the brand leader.

à Cadbury India began its operations in 1948 by importing chocolates and then
re-packing them before distribution in the Indian market.

à On 7 May 2008, the separation of our confectionery and Americas Beverages

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

CADBURY DAIRY MILK

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

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

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

POSITIONING AND REPOSITIONING

Cadbury Dairy Milk has been the market leader in the chocolate category for years
and has participated and been a part of every Indian's moments of happiness, joy and
celebration. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian
chocolate market.

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

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 à In the Mid 90's the category was re-defined by the very popular `Real Taste of
Life' campaign, shifting the focus from `just for kids' to the `kid in all of us'. It
appealed to the child in every adult and Cadbury Dairy Milk became the
perfect expression of 'spontaneity' and 'shared good feelings'. The 'Real Taste
of Life' campaign had many memorable executions, which people still fondly
remember. However, the one with the "girl dancing on the cricket field" has
remained etched in everyone's memory, as the most spontaneous & un-
inhibited expression of happiness. This campaign went on to be awarded 'The
Campaign of the Century', in India at the Abby (Ad Club, Mumbai) awards.

à In the late 90's, to further expand the category, the focus shifted towards
widening chocolate consumption amongst the masses, through the
'Khanewalon Ko Khane Ka Bahana Chahiye' campaign. This campaign built
social acceptance for chocolate consumption amongst adults, by showcasing
collective and shared moments.

à More recently, the 'Kuch Meetha Ho Jaaye' campaign associated Cadbury

Dairy Milk with celebratory occasions and the phrase "Pappu Pass Ho Gaya"
became part of street language. It has been adopted by consumers and today is
used extensively to express joy in a moment of achievement and success. The
interactive campaign for "Pappu Pass Ho Gaya" bagged a Bronze Lion at the
prestigious Cannes Advertising Festival 2006 for 'Best use of internet and new
media'. The idea involved a tie-up with Reliance India Mobile service and
allowed students to check their exam results using their mobile service and
encouraged those who passed their examinations to celebrate with Cadbury
Dairy Milk. The 'Pappu Pass Ho Gaya' campaign also went on to win Silver for
The Best Integrated Marketing Campaign and Gold in the Consumer Products
category at the EFFIES 2006 (global benchmark for effective advertising
campaigns) awards.

SOME INTERESTING FACTS

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

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

Superbrand" for 2006-7 by Superbrands India.

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

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 Instrument of Data Collection for
Quantitative Research

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

BRAND ASSET VALUATOR

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

― Over US$70 million invested

― Over 350,000 consumers
― 19,500 brands
― 173 studies since 1993 using the same methodology
― 44 countries

A BAV can be used to

― Assess brand health

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

The Four Key Brand Pillars

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

Differentiation, Relevance, Esteem and Knowledge.

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

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

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

Relevance + Differentiation = Brand Strength

à Esteem
Esteem = Popularity + Quality

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

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

Esteem + Knowledge = Brand Stature

The Power Grid

Mapping the brand-

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

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

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

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

RATIONALE FOR USING A BRAND ASSET VALUATOR

It helps in:

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

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

DATA COLLECTION

RESEARCH INSTRUMENT

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

SAMPLE DETAILS

Sample Size : 40

Age Bracket : 20-30 years old

Composition : Men-70% , Women-30%

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QUESTIONNAIRE

Name: ______________
Age : ______________
Sex : ______________

1.) Identify the following brands of chocolates:

2.) Which of these brands of chocolates have you tasted?

Dairy Milk Yes No

5 Star Yes No
Kitkat Yes No
Munch Yes No
Amul Milk Chocolate Yes No
Bournville Yes No

3.) Identify the brands with the following taglines:

a) Kuch mitha ho jaaye.
b) Have a break, have a ---------.
c) Can’t stop munching.
d) Jo khaye kho jaaye.
e) A gift for someone you love.

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

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

QUESTIONS RANKS
4) Which of these brands are
innovative in terms of Dairy 5 Amul
advertisements, product, Milk Star Kitkat Munch Milk Bournville
packaging etc? Chocolate
5) If these brands are given human
attributes, which of them would
you like to be with?
6) Which brand of chocolates gives
you more value for money?
7) Rank the brands according to
preference with regard to quality.
8) Rank the brands according to their
appeal across all age groups.
9) Which of these brands of
chocolates would you gift to
someone?
10) Rank the brands according to
the trust associated with them.
11) Identify the following attributes with any 1 of these brands (Dairy Milk, 5 Star,
Kitkat, Munch, Amul Milk Chocolate and Bournville)

Authentic Socially Responsible

Unique Fun

Popular Worth More

Down to Earth Useful

Glamorous Sensuous

Prestigious Strong

Dynamic Winner

Trendy Sensible

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RESULTS AND ANALYSIS OF BAV

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

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

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

1) Knowledge- Dairy Milk is the leader in knowledge, followed by 5Star, Kitkat,

Munch and Amul milk chocolate. This shows that Dairy Milk is well known by
customers both in term of visual brand recognition and tagline identification,
the reason for which can be heavy advertisement and promotion.
2) Esteem – Dairy Milk is also a leader in esteem factor, the reason being high
percentile score in gifting purpose, trust associated, prestigious and
authenticity traits. Dairy Milk is followed by 5 Star, Amul Milk Chocolate ,
Bournville, Kitkat and Munch.
3) Relevance- Dairy Milk also scores the highest in relevance factor, the reason
being very high percentile score in value for money, quality and appeal across
all age group traits.
4) Differentiation- This is the only factor in which Dairy Milk is lagging behind
Kitkat and 5 Star. Although it has scored high percentile in innovativeness but
it is lagging behind in traits like uniqueness, glamour & fun factor.

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ANALYSIS OF THE BRAND- CADBURY DAIRY MILK

Differentiation and Relevance

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

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

Knowledge and Esteem

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

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

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

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

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

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 Percentile
Rank
Differentiation 63.33
Relevance 93.33
Esteem 90
Knowledge 93.33
Overall Average 84.9975

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

Power grid

BRAND STRENGTH
(DIFFERENTIATION
& RELEVANCE)

BRAND STATURE (ESTEEM & KNOWLEDGE)

From the power grid we conclude that

à Dairy Milk is a declining brand

à 5 Star is the leader

à Kitkat is the brand which has unrealised potential

à Munch and Bournville are new brands

à Amul Milk chocolate is an unfocused brand

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Cadbury Dairy Milk is a declining leader

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

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 Instrument of Data Collection for
Qualitative Research

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

LADDERING

Laddering refers to an in-depth, one-on-one interviewing technique used to develop

an understanding of how consumers translate the attributes of products into
meaningful associations with respect to self, following means-end theory” (Reynolds
& Gutman, 1988).

Laddering originated in consumer research and relies heavily on Means-End Theory

which states that people choose a product because it contains attributes (the means)
that are instrumental to achieving the desired consequences and fulfilling values (the
ends). In other words, users’ product choices and consumer behaviour are dependent
on how they perceive certain product attributes as most likely to have certain desired
consequences, which also seem beneficial to their individual values. The common
generic means-end chain, therefore, consists of attributes (A), consequences (C) and
values (V).

Attributes -> Consequences -> Values

Laddering is useful in studies on human behavior. Laddering involves a tailored

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

RATIONAL FOR USING LADDERING

The objective is to provide a detailed description and analysis about the internal
value that a consumer associates with the product. Through this insight in the
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relationships between attributes and values, we can understand the meaning that
(product) attributes bring to users. The real interest therefore lies in the association
networks; the meaningful couplings between attributes, consequences and values.

DATA COLLECTION

RESEARCH INSTRUMENT

Since Laddering by itself refers to a One-on-One in-depth interview, we have used

the same for the purpose of data collection.

SAMPLE DETAILS

Sample Size : 15

Age Bracket : 22-30 years

Composition : Men- 60% , Women-40%

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 HIERARCHICAL VALUE MAP OF CHOCOLATES

Sense of
Happy Life Belonging Fulfilling other Status
Sense of
Responsibilities
Achievement
Social
Esteem

Things go
right
Habit
Allocation of
money on other
Time things
Better
Saving Better Intelligent Sense of
productivity Strong
mood consumer satisfaction Tradition
bond
of gifting More
Differential sweets Saving
Good Treatment
feeling
Value for
money Rich
Form of
Energiser Different Eat Expression
After a Stress Texture
fight buster Saving Inexpensive
Dessert
Liked Gift
Healthy Frequent by
consumption Tempting Girls
Expensive
Chocolate
Sharing
with others

Inexpensive
Melts in Sugary/ Nuts/ Dry Filling
Easily Flavour mouth Sweet Fruits Crunchy Packaging
available Gift
Chocolates Aroma Taste

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

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

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

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

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 Bibliography

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

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