CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION OF BRAND AWARENESS:

Brand awareness refers to the extent to which customers are able to recall or recognise a brand. Brand
awareness is a key consideration in consumer behavior, advertising management, brand management and
strategy development. The consumer's ability to recognise or recall a brand is central to purchasing decision-
making. Purchasing cannot proceed unless a consumer is first aware of a product category and a brand
within that category. Awareness does not necessarily mean that the consumer must be able to recall a
specific brand name, but he or she must be able to recall sufficient distinguishing features for purchasing to
proceed. For instance, if a consumer asks her friend to buy her some gum in a "blue pack", the friend would
be expected to know which gum to buy, even though neither friend can recall the precise brand name at the
time.

Different types of brand awareness have been identified, namely brand recall and brand recognition. Key
researchers argue that these different types of awareness operate in fundamentally different ways and that
this has important implications for the purchase decision process and for marketing communications. Brand
awareness is closely related to concepts such as the evoked set and consideration set which describe specific
aspects of the consumer's purchase decision. Consumers are believed to hold between three and seven brands
in their consideration set across a broad range of product categories. Consumers will normally purchase one
of the top three brands in their consideration set.

Brand awareness is a key indicator of a brand's competitive market performance. Given the importance of
brand awareness in consumer purchasing decisions, marketers have developed a number of metrics designed
to measure brand awareness and other measures of brand health. These metrics are collectively known as
Awareness, Attitudes and Usage (AAU) metrics.

To ensure a product or brand's market success, awareness levels must be managed across the entire product
life-cycle - from product launch through to market decline. Many marketers regularly monitor brand
awareness levels, and if they fall below a predetermined threshold, the advertising and promotional effort is
intensified until awareness returns to the desired level.
Brand awareness is the extent to which a brand is recognized by potential customers and correctly associated
with a particular product or service. For example, when someone says “I need a Kleenex,” you know they’re
referring to a tissue. There are plenty of other brands that create tissues, but Kleenex has become the most
widely known brand. The more familiar people are with something, the more they trust it and gravitate to it.

Brand awareness is important because it helps businesses to stand out above their competition, build an
audience more effectively, and generate more leads. A higher level of brand awareness typically equates to
higher sales and also serves as an economic moat that prevents competitors from gaining more market share.

Brand awareness is related to the functions of brand identities in consumers’ memory and can be measured
by how well the consumers can identify the brand under various conditions. Brand awareness is also central
to understanding the consumer purchase decision process. Strong brand awareness can be a predictor of
brand success.It is an important measure of brand strength or brand equity and is also involved in customer
satisfaction, brand loyalty and the customer's brand relationships.

Brand awareness is a key indicator of a brand's market performance. Every year advertisers invest
substantial sums of money attempting to improve a brand's overall awareness levels. Many marketers
regularly monitor brand awareness levels, and if they fall below a predetermined threshold, the advertising
and promotional effort is intensified until awareness returns to the desired level. Setting brand awareness
goals/ objectives is a key decision in marketing planning and strategy development.

Brand awareness is one of major brand assets that adds value to the product, service or company.Investments
in building brand awareness can lead to sustainable competitive advantages, thus, leading to long-term value.

Brand awareness is the level of consumer consciousness of a company. It measures a potential customer’s
ability to not only recognize a brand image, but to also associate it with a certain company’s product or
service.Brand awareness is best spread through both inbound and outbound marketing efforts. When
competition in an industry is high, brand awareness can be one of a business’s greatest assets.

Brand awareness is a marketing term that describes the degree of consumer recognition of a product by its
name. Creating brand awareness is a key step in promoting a new product or reviving an older brand.
Ideally, awareness of the brand may include the qualities that distinguish the product from its
competition.Products and services that maintain a high level of brand awareness are likely to generate more
sales. Consumers confronted with choices are simply more likely to buy a name brand product than an
unfamiliar one.

Brand Awareness refers to “extent to which consumers are familiar with the distinctive qualities or image of
a particular brand of goods or services.”Brand awareness is important when launching new products and
services, and it drives consumers’ decisions when differentiating between competing companies. It
encourages repeat purchases and leads to an increase in market share and incremental sales. Brand awareness
is also very important to businesses that are marketing proactively through social media sites.
1.2 ORGANIZATIONAL STRUCTURE:

Cadbury follows a downward flow of communication.So, their organizational structure can be said as
hieraerchical structure.It is based on distinct chain of commands from managing director to clerical support
assistants. All decisions are made by the top and pass down. Cadburys employees roles are usually based on
clearly defined procedures and roles. The management style at Cadburys is Democratic. This affects the
operations at Cadburys by the director discussing issues with the employees, who are interested. This shows
that they are considering everyone's views and suggestions. It also brings the employees together, and tends
to motivate them more. The performance at Cadbury's with this management style will be high because they
are discussing the ideas with the directors and other employees, but in the end the directors will make the
final decision. The objectives at Cadburys are being helped to be met by this management style an example
of this is "surviving" and "Profit" because as new ideas are being discussed they are achieving these
objectives because the more products that are on the market the more profit can be earned. The director will
decide if the suggestions are a good idea considering everyone's ideas.

Nestle Company is a decentralized organization that is organized according to the matrix structure. Nestle as
a decentralized organization permits to subordinate branches to enjoy a proportionately high-level of
independence. Although it still makes major strategy decisions at the headquarter level, daily operations are
left up to subordinate branches to derive and perform. The responsibility for operating decisions is push
down to local unitsIn organization structure, Complex system is a system that is comprises a large number of
entities that display a high level of nonlinear interactivity. There are number of basic observations that have
been made through the examination of complex systems, mainly using computer simulation and the
mathematic of non-linearity.Complex systems are usually open systems. Nestle, over its long historical
development from a small village operation to the world’s leading food Company, has illustrate an excellent
capability to adjust to an ever-changing external environment, without losing its basic beliefs and core
values, so important for long-term success. Over the years to come, this capability will continue to be
challenge even more as Nestle is growing in size and complexity up to a dimension, which demands a
continuous development of its organisation and of the way in which it run.

1.3 HOW IT ENTER INDIA:

CADBURY

 Cadbury begans its operations in India on 19th July, 1948 by importing chocolates.
 It has 4 sales offices in New Delhi , Mumbai , Kolkata , Chennai and manufacturing facilities in
Thane , Induri (Pune) , Hyderabad , Malanpur (Gwalior), Bangalore and in Baddi (HP).
 The Corporate head office is in Mumbai (Cadbury House).
 For over two decades,Cadbury has worked with the kerala agricultural university to undertake cocoa
research.
 Currently,Cadbury India operates in Five categories – Chocolate confectionery , Beverages ,
Biscuits, Gum and candy.
  It is the market leader in the chocolate confectionery with a market share of over 70%.
 On 21st April 2014, cadbury India changed its name to Monelez India Foods Limited.
 Some of the key brands are Cadbury Dairy Milk , Bournvita , 5 star , Perk , Bournville , Celebrations,
Gems , Halls , Eclairs , Bubbaloo , Tang and Oreo.

NESTLE

 Nestle India is a subsidiary of Nestle S.A. of Switzerland.

 Its first factory is formed in Moga(Punjab), and has many factories in India in Haryana , Goa ,
Karnataka.
 The corporate head office is in Gurgaon.
 Nestle India operates in Milk products and Nutrition , Beverages , Prepared Dishes and Cooking
Aids, Chocolates and Confectionery.
 Presently the worlds largest and most diversified food company.
 Some of the key brands are Milkmaid , Everyday powder , Nescafe , Nestea , Maggi , Pichkoo ,
Kitkat , Milkybar , Polo and Maggi Ketchup.

1.4 HISTORY:

CADBURY

 Cadbury, the global leader in the chocolate confectionery market, began in 1824 when a young
Quaker named John Cadbury opened up a shop in Birmingham. John sold coffee, tea, drinking
chocolate and cocoa at his shop. Believing that alcohol was a main cause of poverty, John hoped his
products might serve as an alternative. He also sold hops and mustard. Like many Quakers John had
high quality standards for all of his products.
 By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate. Soon John’s brother
Benjamin joined the company to form Cadbury Brothers of Birmingham. Six years later the brothers
dissolved their partnership because of John’s failing health and the death of his wife. They left the
business to John's sons George and Richard.
 John devoted the rest of his life to social work and died. With Cadbury’s continued success in
chocolate, George and Richard stopped selling tea in 1873. This resulted in Cadbury producing
chocolate covered nougats, bonbons delices, pistache, caramels, avelines and more. Cadbury
manufactured its first milk chocolate in 1897. Two years later the Bournville factory employed 2,600
people and Cadbury was incorporated as a limited company.
 George and Richard continued to expand the product line, and by 1864, they were pulling a profit.
Cadbury’s Cocoa Essence, which was advertised as "absolutely pure and therefore best," was an all-
natural product made with pure cocoa butter and no starchy ingredients. Cocoa Essence was the
beginning of chocolate as we know it today. The brothers soon moved their manufacturing operations
 to a larger facility four miles south of Birmingham. The factory and area became known as
Bournville.
 In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes. Schweppes was a well-
known British brand that manufactured carbonated mineral water and soft drinks.
 Today Cadbury Schweppes is the largest confectionery company in the world, employing more than
70,000 employees. In 2006 the company had over $15 billion in overall sales.
 In March of 2007, Cadbury Scheweppes announced that it intends to separate its confectionery and
beverage businesses. With almost 200 years in the business, Cadbury Schweppes will continue to
prosper in the coming decades.

NESTLE

 The company dates to 1866, when two separate Swiss enterprises were founded that would later form
the core of Nestle. In 1877 Anglo-Swiss added milk-based baby foods to its products, and in the
following year the Nestlé company added condensed milk, so that the firms became direct and fierce
rivals. n 1877 Anglo-Swiss added milk-based baby foods to its products, and in the following year
the Nestle company added condensed milk, so that the firms became direct and fierce rivals.
 From the beginning of the 20th century the Nestlé company began diversifying. In 1904 it bought
chocolate rights that would eventually result in products under the Peter, Kohler, Nestlé, and Cailler
brands. In 1927 it acquired rights from the cheese makers Gerber & Company AG.
 In 1937 the company invented instant coffee, which it began producing under the name Nescafé the
following year. In 1960 it acquired control of Crosse & Blackwell (founded 1830) and affiliated
companies in Great Britain, Australia, South Africa, the United States, and elsewhere.
 Nestlé’s bottled-water division was created through the purchase of European brands such as Vittel
(1987), Perrier (1992), and Sanpellegrino (1998). The many acquisitions of U.S. food companies
have included Libby, McNeill & Libby (1970), the Stouffer Corporation (1973), and one of
America’s largest food companies, the Carnation Company (1985).
 In 2002 Nestlé’s purchase of Ralston Purina created a new division, Nestlé Purina PetCare, while
Nestlé’s American ice cream businesses were consolidated under the Dreyer’s brand. Chef America,
Inc., a frozen-food company, was also purchased in 2002. In 2007 the company added the milk-
flavouring product known as Ovaltine to its product line.
 The company also entered the frozen-pizza market in 2010 by purchasing Kraft Foods’ frozen-pizza
business in the U.S. and Canada for $3.7 billion.