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OF THE
PROJECT.
SUMMARY
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INTRODUCTION
OF THE BRAND
MANAGEMENT.
OBJECTIVE
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“What is the purpose of this study?” and “what are the objectives of the research?” if these
questions are not properly answered at the outset the study is likely to be misdirected and to
pursue vague or obscure goals. The probable result will be that the collective data will not be valid
and reliable as desired.
BRAND
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“Brand creates VALUE for the Product.
It allows selling it with the premium.
It CREATES that relationship with the customers.”
The American Marketing Association (AMA) defines a Brand as a "name, term, sign, symbol or
design, or a combination of them intended to identify the goods and services of one seller or group
of sellers and to differentiate them from those of other sellers. Brand conveys six levels which
help to succeed in the market that is listed below:-
• Attributes
• Benefits
• Values
• Cultural
• Personality
• User
Brand is used by companies to gain maximum customer loyalty. A brand’s distinctive capabilities
are identified by customer based on their perceptions that have themselves been created by the
marketer over a period of time.
A collectively held idea of a company by its customers in reaction to the messages the company
sends via advertising, product design and public relations. For example, Nokia, Unilever, Apple is
well renowned brands. In technical speaking whenever a marketer creates a name logo symbol he
or she has created a brand.
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Image Share of
Brand Esteem
Power Mind
1 Coca-Cola 1 6
2 Sony 4 1
3 Mercedes-Benz 12 2
4 Kodak 5 9
5 Disney 8 5
6 Nestle 7 14
7 Toyota 6 23
8 McDonalds 2 85
9 IBM 20 4
10 Pepsi Cola 3 92
BRAND MANAGEMENT
Brand management is the application of marketing techniques to a specific product, product line,
or brand. It seeks to increase the product's perceived value to the customer and thereby increase
brand franchise and brand equity. It may also enable the manufacturer to charge more for the
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product. The value of the brand is determined by the amount of profit it generates for the
manufacturer. It will be helpful in increased sales and price or to reduced COGS (cost of goods
sold), and reduced or more efficient marketing investment.
Brand Managers often carry line-management accountability for a brand's P&L profitability in
contrast to marketing staff manager roles which are allocated budgets. Brand Management is often
viewed in organizations as a broader and more strategic role than Marketing alone. While forming
a brand company has to go through certain procedures:-
Brand Equity:-
It is defined in terms of the marketing effects uniquely attributable to the brand. The brand equity
concept stresses the importance of the brand in marketing strategies. It is the combination of assets
and liabilities associated with a brand that enhances or depreciates the value of the brand. The
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brand equity has five major determinates are awareness, quality perception, loyalty, patents,
trademark. For example, Parle-G, the biscuits major which caters to the mass market, is hoping
the brand equity of biscuits in wheat flour (atta) market. Parle is selling atta under the same brand
name as its biscuits. Parle-G has launched the atta under the same name to gain advantage from
the brand equity of biscuits.
Brand equity refers to the marketing effects or outcomes that accrue to a product with its brand
name compared with those that would accrue if the same product did not have the brand name.
And, at the root of these marketing effects is consumers' knowledge. In other words, consumers'
knowledge about a brand makes consumers respond differently to the marketing of the brand.
There are many ways to measure a brand. Some measurements approaches are at the firm level,
some at the product level and still others are at the consumer level.
Examples,
a) Lux Soaps:-
This brand has maintained its unique features as “beauty soap bar of the film’s stars”. This brand
is making good contribution in the marketing due to its popularity among consumers which is a
result of various factors such as attractive packages, quality, price, easy availability.
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b) Goderej Storewel:-
The company is popular among consumer even when many identical cupboards and competitors in
the market.
Brand equity is the incremental value of business over and above physical assets resulted from
bringing together various elements such as brand name, packaging, advertisement, pricing and so
on.
Brand positioning:-
It is the act of designing companies the company’s offer so that it occupies a distinct and valued
place in the minds of customer
Brand positioning is a part of brand identity and value proposition that is to be actively
communicated to the target audience and demonstrate an advantage over competing brands.
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POSITIONING STRATEGY:-
4. Positioning by benefit:
Position on the basis of special benefit. For example, Maggi two minute noodles position itself
with “Two minute positioning”, “Fast to cook good to eat”.
Brand Sponsorship:-
It is form of publicity, which is done by supporting and linking the organization name with a
particular event most commonly, sporting events or an activity that involves a large public
gathering. Sponsorship of major events it’s a great opportunity for companies to gain publicity.
The company should be cleared about the benefit it is trying to derive out of sponsoring a
particular event. First, creating awareness of the brand during the event and developing
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association and relationship with the brand. Second, from the option available the firm should
choose the event that will help to achieve its sponsoring objective. Third, brand easily gets
associated with the event. Fourth, it is better to have long term relationship with the event rather
the sponsor a new event every time.
For examples, 'Coca-Cola' is one of the top global sponsors of sport. The rationale for sponsoring
international and local sporting events is that it is "a natural fit". By matching the brand with
world standard events 'Coca-Cola' benefits from the exposure and the associations made between
it and the event being sponsored. Equally by ensuring that local events are sponsored the brand is
exposed exclusively to a local market and will thus be seen as a local brand. 'Coca-Cola' meets
its sponsorship objectives:-
international level.
Brand Leverage:-
When marketers leverage on brand equity by using the existing brand name for new products, it
can be termed as Brand leverage. Marketers resort to this method so that consumers will perceive
the new brand as having some of the characteristics of the existing brand. For example, Lux used
its brand name to move into the liquid soap and shampoo market. Godrej Fairglow soap brand was
extended to its fairness cream.
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For example, the manufacturer of Mr. Coffee, coffee makers used its brand name strength to
launch Mr. Coffee brand coffee. While coffee machines and coffee beans are in different product
categories, there is a strong enough correlation between the two items that the brand name has a
powerful impact on consumers of both categories.
Brand leveraging communicates valuable product information to consumers about new products.
Consumers enter retail outlets equipped with pre-existing knowledge of a brand’s level of quality
and consistently relate this knowledge to new products carrying the familiar brand. Generally,
consumers maintain a consistent brand perception until disappointed – creating a risky advantage
for established brands. Additional advantages of brand leveraging include:
• More products mean greater shelf space for the brand and more opportunities to make a
sale.
• The cost of introducing a brand leveraged product is less than introducing an
independently new product due to a much smaller investment in brand development and
advertising designed to gain brand recognition.
• A full line permits coordination of product offerings, such as bagels and cream cheese,
potato chips and ranch dip, peanut butter and jelly, etc.
• A greater number of products increase efficiency of manufacturing facilities and raw
materials.
A brand leveraging strategy will not work in every situation. A brand leveraging strategy can be
extremely successful and profitable if it is correctly implemented and provides new products with
the right image. There are important questions that should be considered in order to make the best
decision for your brand:
• Does the new product fit into the established product family?
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• Does the brand have attributes or features that easily and effectively carry into new
categories?
• Is the brand name strengthened or diluted by representing two (or more) differentiated
products?
• Does your company have facilities necessary to manufacture and distribute a new and
differentiated product?
• Will sales of the new product cover the cost of product development and marketing?
Brand Personality:-
Two elements thus affect an individual's relationship with a brand. First, there is the relationship
between the brand-as-person and the customer, which is analogous to the relationship between two
people. Second, there is the brand personality--that is, the type of person the brand represents. The
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brand personality provides depth, feelings and liking to the relationship. Of course, a brand-
customer relationship can also be based on a functional benefit, just as two people can have a
strictly business relationship.
It is the description of a brand in the terms human characteristics. Effective personality of a brand
to its prospective customers in an idealized sense. It tends to create an identity of a brand with the
person. It plays the role of a differentiator. It create link between brand and customer. It is also
called AIDA (attention, interest, desire, action) it is a strategic weapon in a cluttered marketplace.
Advantages of brand personality:-
It helps the advertiser to face brand wars and market competition effectively.
For example,
Google : - simplicity
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Pepsi built youth, spontaneity and irreverence as key elements of the brand personality. Sachin
was shown smashing a windscreen and Azhar swiping a Pepsi. Coke has still a define a
personality for itself.
• MRF Tyres:-
Up market, sporty, powerful.
Brand Identity:-
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Brand Identity is the unique set of brand associations that the brand strategist aspires to create or
maintain. These associations represent what the brand stands for and imply a promise to customers
for the organization members.
It is much more comprehensive than brand positioning which communicate to the consumer
relevant value to the brand to distinguish from competitor’s brand.
Core Identity : - Oral freshness which allows young people to come closer to each other
Value Proposition : - It is a sweet gel, having bright colors. It is only cleanness but freshness
the mouth
Value Proposition : - Relief from prickly heat in tropical climate and summer. Make life
comfortable.
BRAND IDENTITY
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Perspective Dimension Remarks
Brand as product • Quality Quality price relationship is kept in mind
• Users
Organization Organization attributes Tata Stands for quality. Such an association is
attributes
Symbol • visuals imagery Coca cola’s classic bottle
Brand Loyalty:-
It can be considered as conscious or unconscious decision of consumers that is reflected in his
expressed intent or behavior to purchase and repurchase it on a continuous basis. Consumer
loyalty towards a brand can be attributed to his perception about the brand that it provides the right
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mix of features and quality. Behavioral scientists argue that brand loyalty occurs because of
reinforcement. Cognitive scientist states that brand loyalty is a problem solving behavior. It is
aspects of marketers.
Brand loyalty has been proclaimed by some to be the ultimate goal of marketing. In marketing,
brand loyalty consists of a consumer's commitment to repurchase the brand and can be
demonstrated by repeated buying of a product or service or other positive behaviors such as word
of mouth advocacy. True brand loyalty implies that the consumer is willing, at least on occasion,
to put aside their own desires in the interest of the brand.
Brand loyalty is more than simple repurchasing, however. Customers may repurchase a brand due
to situational constraints, a lack of viable alternatives, or out of convenience. Such loyalty is
referred to as "spurious loyalty". True brand loyalty exists when customers have a high relative
attitude toward the brand which is then exhibited through repurchase behavior. This type of
loyalty can be a great asset to the firm: customers are willing to pay higher prices, they may cost
less to serve, and can bring new customers to the firm. For example, if Joe has brand loyalty to
Company A he will purchase Company A's products even if Company B's are cheaper and/or of a
higher quality. Philip Kotler, again, defines four patterns of behavior:
Hard Core Loyal - who buy the brand all the time.
BRAND IMAGE
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A unique set of associations in the minds of customers concerning what a brand stands for and the
implied promises the brand makes. The sum of all tangible & intangible traits. It represents all
internal & external characteristics. It's anything & everything that influences how brand or a
company is perceived by its target constituencies. It is the best, single marketable investment a
company can make. Ideas, beliefs, values, culture, name, symbol, packaging, advertising, sales
materials. For example, When you listen to the song of U and I and when you see the red color
you remember the brand Vodafone. That’s the brand image
created by Vodafone on their customer.
Company image = the valued customers, potential customers, lost customers and other groups of
people connect with the organization
Research on image built through endorsement of celebrities show that there are three aspects that
influence a consumer’s attitude of a brand. These are:
• Attractiveness
• Trustworthiness
• Expertise
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I. Contents of Advertisement:-
The quality of contents i.e. headlines, the color combination, words can give indented image to
the brand. For example, if cheap humor is used in the ad, the brand may get cheap image.
III. Price:-
The price factor can generate image for the brands. For example, the premium pricing for
Toyota has developed a rich image not only for company but for brand.
IV. Packaging:-
The package must be properly designed in order to give a rich image to the brand as package is the
face of the product.
V. Distribution:-
The type of distribution by a company may affect the image of the brand. For example,
companies enjoy goodwill in the market can generate favorable image for their brands.
BRAND TYPES
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• Premium:- Cost more than other product in the category
the absence of a brand name. Generics brands are usually priced below those products sold by
supermarkets under their own brand (frequently referred to as "store brands" or "own
brands"). Generally they imitate these more expensive brands, competing on price. For
BRAND STRATEGY
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Branding in essence is effective brand strategy. It's the application of sound research into brand
communications, analytical techniques, and the development of an improved strategy for your
brand. Strategy is all about brand positioning. It identifies the key elements of product brand and
develops a branding action plan to implement it.
• LINE EXTENSIONS:-
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In this strategy company introduces additional item in the same product category in the same
brand name. This item may be different in size, packaging, color and so on. It is available through
different specific mix of trade channels e.g. lower end products are available at general stores and
higher end products.
It offers a variety of products to the customer. Line extensions can be innovative. It also allows
company to command more shelf-space at the retail level. Line extensions work only if the sales
are taken away from the competitors.
For example, Coke in India means 300 ml. bottles it extended to 500 ml. and 1 ltr. Then can has
introduced.
Godrej had face cream with the name Fair glow fairness cream and came out with the fair glow
toilet soap to cater the people who wished to use soap bar rather than cream.
• BRAND EXTENSION:-
Extending brand name is extended to a product being launched in a new product category. If new
product is not satisfactory in performance, it might affect the reputation of the company’s other
products. Most of the times, brand name may not be appropriate for the new product category.
Brand extension advisable to see how the associations of the parent brand are consistent with the
extended brand. For example, Bajaj is a brand name in the field of Scooters. The company used
the same brand name for Electronics appliances, Motor cycles, Tempos.
1. Extending the brand: - Colgate is available in both toothpaste and toothpowder. Similarly
Vim bar extended to the powder.
2. Product line extension: - additional product is added under same brand name. For
example, HLL extended its Flora brand of Sunflower oil to the gingelly oil segment of the
edible oil category.
3. Reaching out to the new category: - when the brand has potential of providing benefit in
another category either through chosen brand name or through its wide acceptance in a
category, this form of extension is followed.
• BRAND RELAUNCH:-
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It is the process of launching the brand after certain time gap. Companies try to acquire a brand
from other companies and relaunch it with necessary modification. For example, Glaxosmithline
acquired Viva a Maltova from Jagatjit industries in 2000, but could not secure the expected
benefit. HLL acquired Kwality ice cream in the mid- nineties it as Kwality Walls.
• MULTIBRANDS:-
This kind of strategy is employed to saturate the market. Additional brands are introduced to cater
to the different segment. Multibrands strategy may not allow company to focus on company’s
resources. Because of this profitability get affected. Competitors brand get affected by the product
and sometime own brand also get affected. For example, P&G’s tide is for solied clothes and
dreft is for gentle clothes. P&G products nine different brands of detergent.
Coco- Cola came with Thumps Up, Gold spot, Limca brands.
• Brand Awareness:-
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Brand awareness is the starting point in the development of brand equity. It represents the
consumer's ability to recall a brand name when given a product category
(Aaker, 1991). For example, when a person is asked to name a brand of
basketball shoes, they are more likely to mention Nike, Reebok, Converse
or Adidas than they are to name LA Gear or Spalding.
According to Keller (1998), brand awareness is important to brand strategy for two reasons. First,
awareness of the brand ensures the brand enters the consumer's consideration set when looking to
make a purchase. Second, brand awareness can affect choices within the consideration set. If one
brand has a larger presence through advertising, it may be considered more favorably. Third,
awareness can impact the development and salience of associations with the brand. For example,
when anyone says, about Computer Company you remember about IBM. When anyone says,
about detergent u remember popular brand like Tide, Surf, Airel and so on.
• Perceiver Quality:-
• Slogan:-
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For example, Maggi noodles, it positioned their products as healthy fast food with the slogan 2
minute noodles. Slogan based on 2 minutes it help mother with promise of ‘food to cook and great
to eat’. This slogan specifies u can prepare food within 2 minute and it will not harm to your
health.
• Brand association:-
It is associate brand with certain tangible and intangible attributes, a celebrity endorser or a visual
symbol. Most of this association are derived from brand identity and brand image. Each
organization has to carve a brand identity and develop it further to build strong brands.
Along with the brand name, companies also use a logo for visual identification. A logo is pictorial
symbol indented to communicate with the consumers. Flags, pictures, graphical designs and
alphabets are all used as logos. It is the piece of creativity. Logo is a relatively permanent entity
for a company.
For example, logo of the Aditya Birla group of companies in
India is a Rising Sun. according to the company, the logo
represent the company’s outlook, which is positive thinking and
also a stress on values such as interity, quality, and
performances.
• Characters:-
Brand characters typically are introduced through advertising and can play a central role in these
and subsequent ad campaigns. Brand characters come in many different forms. Some brand
characters are animated where as others are live-action figures. Consequently brand characters can
be quite useful for creating brand awareness. Characters often must be updated over time so that
their image and personality remains relevant to the target market.
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For example, An Asian paint is another that has created a wining logo. When you look for Asian
paints, you catch sight of Gattu- the impish little boy with a paintbrush in one hand a dripping can
of paints in the other. In many towns of North India, buyer asks for Asian Paints, by asking for the
“bacha chaap paint”.
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INTELLECTUAL PROPERTY
In law, intellectual property (IP) is an umbrella term for various legal entitlements which attach
to certain types of information, ideas, or other intangibles in their expressed form. The holder of
this legal entitlement is generally entitled to exercise various exclusive rights in relation to the
subject matter of the IP. The term intellectual property reflects the idea that this subject matter is
the product of the mind or the intellect, and that IP rights may be protected at law in the same way
as any other form of property.
Intellectual property laws vary from jurisdiction to jurisdiction, such that the acquisition,
registration or enforcement of IP rights must be pursued or obtained separately in each territory of
interest. However, these laws are becoming increasingly harmonized through the effects of
international treaties such as the 1994 World Trade Organization (WTO) Agreement on Trade-
Related Aspects of Intellectual Property Rights (TRIPs), while other treaties may facilitate
registration in more than one jurisdiction at a time.
IP, protected through law, like any other form of property can be a matter of trade, that is, it can be
owned, bequeathed, sold or bought. The major features that distinguish it from other forms are
their intangibility and non-exhaustion by consumption. IP is the foundation of knowledge-based
economy. It pervades all sectors of economy and is increasingly becoming important for ensuring
competitiveness of the enterprises. These could be in the form of Patents; Trademarks;
Geographical Indications; Industrial Designs; Layout-Designs (Topographies) of Integrated
Circuits; Plant Variety Protection and Copyright.
IP, protected through law, like any other form of property can be a matter of trade, that is, it can be
owned, bequeathed, sold or bought.
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• COPYRIGHTS
India’s copyright law, laid down in the Indian Copyright Act, 1957 as amended by Copyright
(Amendment) Act, 1999, fully reflects the Berne Convention on
Copyrights, to which India is a party. Additionally, India is party to the
Geneva Convention for the Protection of rights of Producers of
Phonograms and to the Universal Copyright Convention. India is also
an active member of the World Intellectual Property Organisation
(WIPO), Geneva and UNESCO.
The copyright law has been amended periodically to keep pace with changing requirements. The
recent amendment to the copyright law, which came into force in May 1995, has ushered in
comprehensive changes and brought the copyright law in line with the developments in satellite
broadcasting, computer software and digital technology. The amended law has made provisions
for the first time, to protect performer’s rights as envisaged in the Rome Convention
• TRADE MARKS
Trademarks have been defined as any sign, or any combination of signs capable of distinguishing
the goods or services of one undertaking from those of other
undertakings. Such distinguishing marks constitute protectable subject
matter under the provisions of the TRIPS Agreement. The Agreement
provides that initial registration and each renewal of registration shall
be for a term of not less than 7 years and the registration shall be
renewable indefinitely. Compulsory licensing of trademarks is not
permitted.
Keeping in view the changes in trade and commercial practices, globalization of trade, need for
simplification and harmonization of trademarks registration systems etc., a comprehensive review
of the Trade and Merchandise Marks Act, 1958 was made and a Bill to repeal and replace the 1958
Act has since been passed by Parliament and notified in the Gazette on 30.12.1999.
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The Windows logo is a trademark of Microsoft Corporation. The Sun logo is a registered
trademark of Sun Microsystems, Inc. The Red Hat logo is a registered trademark of Red Hat, Inc.
The hp logo is a registered trademark of the Hewlett-Packard Company. The AiX logo is a
registered trademark of IBM Corporation. The NetApp logo is a registered trademark of Network
Appliance, Inc. The EMC Legato logo is a trademark of EMC Corporation. The Tivoli Storage
Manager logo is a trademark to IBM Corporation. The Veritas logo is a trademark of Veritas
Corporation.
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• GEOGRAPHICAL INDICATIONS
The Agreement contains a general obligation that parties shall provide the legal means for
interested parties to prevent the use of any means in the designation or presentation of a good that
indicates or suggests that the good in question originates in a geographical area other than the true
place of origin in a manner which misleads the public as to the geographical origin of the goo.
There is no obligation under the Agreement to protect geographical indications which are not
protected in their country or origin or which have fall en into disuse in that country.
A new law for the protection of geographical indications, viz. the Geographical Indications of
Goods (Registration and the Protection) Act, 1999 has also been passed by the Parliament and
notified on 30.12.1999 and the rules made thee under notified on 8-3-2002.
• INDUSTRIAL DESIGNS
Obligations envisaged in respect of industrial designs are that independently created designs that
are new or original shall be protected. Individual governments have been given the option to
exclude from protection, designs dictated by technical or functional considerations, as against
aesthetic consideration which constitutes the coverage of industrial designs. The right accruing to
the right holder is the right to prevent third parties not having his consent from making, selling or
importing articles being or embodying a design, which is a copy or substantially a copy of the
protected design when such acts are undertaken for commercial purposes. The duration of
protection is to be not less than 10 years.
A new designs law repealing and replacing the Designs Act, 1911 has been passed by Parliament
in the Budget Session, 2000. This Act has been brought into force from 11.5.2001.
• PATENTS
The term patent usually refers to a right granted to anyone who invents or discovers any new and
useful process, machine, article of manufacture, or composition of matter, or any new and useful
improvement thereof. A patent is not a right to practice or use the invention. Rather, a patent
provides the right to exclude others from making, using, selling, offering for sale, or importing the
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patented invention for the term of the patent. A patent is, in effect, a limited property right that the
government offers to inventors in exchange for their agreement to share the details of their
inventions with the public. Like any other property right, it may be sold, licensed, mortgaged,
assigned or transferred, given away, or simply abandoned.
A patent being an exclusionary right does not, however, necessarily give the owner of the patent
the right to exploit the patent.
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CASE STUDY
Company Name: - Proctor and Gamble
"Our brand is our bond with consumers. When we succeed, we convert a trademark into a trust
mark, and another P&G brand becomes a valued and trusted member of the household."
Background Note:-
Proctor and Gamble was established in 1937. William Proctor and James Gambled started a small
business and set up their business in Cincinnati. A pioneer in introducing a formalized brand
management system way back in the 1930s, P&G constantly modified its brand management
strategies as and when the company expanded its product & brand portfolio and its business
operations globally.
Introduction:-
Based in Cincinnati, US, Procter & Gamble (P&G) was one of the largest manufacturers of fast
moving consumer goods (FMCG) in the world. In 2003, the company was ranked 31st among the
Fortune 500 companies. P&G had operations in 80 countries globally, with an employee-strength
of around 1, 10,000 worldwide.
The company introduced the category management model in the 1980s, focused on the 'glocal'
branding strategy in the early 1990s and made changes in its brand management system under the
Organization 2005 restructuring exercise in the late 1990s. In 2000, P&G introduced the 'cohort
management strategy' for managing brands. The strategy involved grouping of brands to appeal to
similar consumer groups. P&G encouraged the promotion of rival brands within the company to
complete against one another. They comprised full color print ads in national magazines.
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P&G’s core strength is its ability to build big leadership brands. The company’s goal is to continue
to doing that better and more consistency that any other company in the world. There are three
factors on which P&G’S success based upon these are:-
a. Understanding consumer needs: - P&G talks more than 5.5 million consumers
worldwide everywhere. The companies use a variety of approach, from in-home visits to
concepts and product testing via the internet. In this way they discover new customer needs.
b. Inventing new product technology: - P&G call “connecting what’s needed with what’s
possible”. The company has more than 27,000 patented technologies and they can simply
find the more number of innovative way to turn its best ideas into improved products that
meet consumer needs better.
P&G was known as the “one page memo company”. The brand manager of P&G were asked to
offer their ideas, suggestion, business plan in just one page. The plan was communicated to
respective functional unit heads and the top management, who reviewed the document and
returned it back for necessary changes. This process continued until the memo was finally
accepted
By the end of 1990, P&G had established global strategic planning groups (GSPG) that constituted
of 3 to 20 individuals, for each of its product categories. Each GSPG was assigned several tasks.
They develop global manufacturing & sourcing strategic and gathered data about the country
specific marketing strategies. The GSPG were also responsible to developing global and local
brand policy that involved decision making on the element of brand strategy that had to be
standardized across the world.
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GSPG were responsible for developing brand strategies, the implementation of these strategies
was carried out by a global category team (GCT) each of the product of P&G was handled by
GCT which was headed by an executive vice president. The GCT constituted the top management
executive handling different line of responsibilities like production, marketing, and research and
development. The country specific brand management implemented the branding strategy in local
market.
P&G encouraged branding team at the country level to develop their own brand building program.
When branding program was highly successful in the country, it was tested in the other market
also.
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INDUSTRY
PROFILE-
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RESEARCH COMPANY
The Cadbury story is a fascinating study of industrial and social development, covering well
over a century and a half. It shows how a small family business developed into an international
company combining the most sophisticated technology with the highest standards of quality,
technical skills and innovation.
History:-
In 1824, John Cadbury began vending tea, coffee, and (later) chocolate at Bull Street in
Birmingham in the UK and sometimes in India. The company was later known as Cadbury
brothers. Richard and George, opened a major new factory at Bournville, five miles south of the
city.
Merger:-
Cadbury's merged with drinks company Schweppes to form Cadbury Schweppes in 1969.
Snapple, Mistic and Stewart's (formerly Cable Car Beverage) was sold by the Triarc to Cadbury
Schweppes in 2000 for $1.45 billion. In October of that same year, Cadbury Schweppes
purchased Royal Crown from Triarc.
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Cadbury Dairy Milk:-
Cadbury Dairy Milk started way back in 1905 at Bournville, U.K., but the
journey with chocolate lovers in India began in 1948.
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.
Purpose:- Vision:-
Brands:-
Marketplace:-
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Cadbury operates in the global confectionery market. The market is large, growing and has
attractive dynamics. The global confectionery market is the world’s fourth largest packaged food
market. It represents 9% of that market, and has a value at retail of US$141 billion. Chocolate is
the largest category, accounting for over half of the global confectionery market by value. Gum
is the fastest growing confectionery category.
Globally, confectionery is growing at around 5% p.a., faster than many other packaged food
markets. Developed markets, which account for around 67% of the global market, grew 3% p.a.
between 2001 and 2006.
Values:-
We make market and sell unique brands, which give or bring pleasure to millions of consumers
around the world every day.
We are an international company, proud of our long heritage, respectful of the social and natural
environment in which we operate, supportive of our consumers, customers and colleagues, and
above all, we are passionate about success.
This success has been built upon understanding the needs of our consumers, customers and other
stakeholders and by operating to a clearly defined set of values. But around us the world
changes. The obligations of business to society have broadened. Yet, at the same time we want to
ensure the continuation of our own heritage.
Profitable Growth:-
Between 2004 and 2007, our organic revenue growth averaged 6% a year, a significant increase on
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the previous four years, when Cadbury’s confectionery growth averaged less than 3%, and the
Adams business, which we brought in 2003, barely grew. We have significantly accelerated our
growth since 2004 by unlocking the potential of the Adams business and by substantially
increasing our investment in innovation, marketing and sales.
Our revenue ambition of between 4% and 6% annual organic growth for the 2008-2011 is
underpinned by:
• Greater exposure to faster growing categories (such as gum) and markets (such as
emerging markets); and
• Healthy demand for confectionery: the market has grown consistently at around 5% every
year for the last four years.
Competition:-
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By participant, the market is relatively fragmented, with the five largest confectionery companies
accounting for less than 40% of the market. There are a large number of companies which
participate in the markets on only a regional or local basis. They compete against multinational,
regional and national companies.
Chocolate share is built on regional strengths as is the case for the other top five chocolate groups.
They command strong positions in the UK, Ireland, Australia, New Zealand, South Africa and
India.
Number two position in gum is built on strong market shares throughout the Americas, in parts of
Europe (including France, Spain and Turkey), and in Japan, Thailand and South Africa.
In candy, cadbury have a number one position. Halls is our largest brand in candy and our position
is supported by other significant regional and local brands.
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Cadbury have number one and number two confectionery market positions in 20 of the world’s 50
largest confectionery markets by retail sales value. These markets accounted for around three
quarters of our revenue in 2007.
Brand
CD
Bonding 68%
Advantage 36
84%
SWOT ANALYSIS
• Strengths:-
I. Maintain a stable growth of a company by maximizing the use of its production capacity and
II.With its brand name, Cadbury could counterattack the competitors it faces in the domestic
III. Keep up with the financial strength by increasing its sales and profit, indeed the foreign
market could present higher profit opportunities than the domestic products.
• Weaknesses:-
I. Total French production of chocolate bars and confectionary, which has increased by 24.5 per
cent between 1988 and 1991, has slowed down in more recent years, partly due to the economic
slump.
II.Consumption of chocolate products, which has been growing until 1991, remained fairly
static in 1992, reflecting a fall in demand due to the gloomy economic situation.
III. Sales of milk chocolate bars, which account for 24 per cent by volume of total sales of
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• Opportunities: -
• Threats:-
I. Total French production of chocolate bars and confectionary, which has increased by 24.5 per
cent between 1988 and 1991,
II. Consumption of chocolate products, which has been growing until 1991, remained fairly
static in 1992, reflecting a fall in demand due to the gloomy economic situation.
III. Sales of milk chocolate bars, which account for 24 per cent by volume of total sales of
chocolate bars, decreased by 3.7 per cent.
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Cadburys Repackage In India
As of January 2004, the packaging for Cadbury's Dairy Milk bars will be completely changed;
creating what the company says is an impenetrable wrapper.
Although the move is in direct response to the allegations of infestation, the company continues to
deny that its production methods at the Indian facilities are of anything but the highest standards
and that there is "absolutely" no w ay that such an infestation could occur. The company has
pointed the finger of blame to distributors, saying that unhygienic storage methods were the likely
source of the infestations.
Cadbury India has even posted a public notice on its website, refuting all allegations of the
infestation during manufacture.
"While current packaging of Cadbury Dairy Milk has proved us in good stead for the past 30
years, they believe that this change will strengthen protection to the bar through complete
sealing," Cadbury India managing director Bharat Puri told the Financial Express.
As with the problems faced by Cadbury India, the allegations were vehemently denied.
Government-backed tests that were later carried out proved that a random selection of Pepsi soft
drinks were in fact well within Indian standards for pesticide residues.
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Quality Assurance:-
Cadbury, quality has always been an integral part of how we operate and who we areur
core purpose of working together to create brands people love is
founded on a commitment to quality in everything we do.
1. Market high quality products that consistently meet our specifications and comply with
local regulatory requirements.
2. Actively listen and regularly respond to the quality expectations of our consumers at
the points of purchase and consumption.
3. Ensure that representations of our company image, including our trademarks, meet
approved standards and reinforce our commitment to quality.
4. Encourage a "right first time" culture in which employees are appropriately trained and
accountable for quality.
6. Assign clear management accountability for setting and meeting measurable quality
targets.
7. Work with our supply chain and business partners to drive compliance to our quality
policy and systems.
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Cadburys Brand Strategy
Cadburys use a line extension brand strategy. Line extension is a strategy in which companies is
introducing their new products in the same product category. Cadbury came with the many
chocolate like Dairy milk, 5star, gems, Perk, Temptation and one of the snacks is Bytes.
In the early 90's, chocolates were seen as 'meant for kids', usually a reward or a bribe for children.
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'.
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.
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 / 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.
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Every time they are coming with the some new advertisement and in every advertisement are
giving new reason to buy dairy milk. About their cost strategy, from so many years their price has
not changed only they are launching new products under the same brand name Cadbury.
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Cadbury Dairy Milk
Background:
Cadbury dominates the chocolate market in India with a 70%
share of the market.
The Task:
In 2005 the task before Cadbury Dairy Milk was to increase its consumer franchise.
The Strategy:
• The task was to get the youth audience to adopt Cadbury Dairy Milk in
the sweet eating or " muh meetha karna" moments
• The campaign of " Jab Pappu Pass Ho jaye, Kuch Meetha Ho jaye" captured the
thought of celebrating a moment of delight with Dairy Milk
• A campaign was built around the idea of how "pappu" celebrated passing his
exams with Dairy Milk.
The Media:
The Results:
The activity contacted 20 MN students across the country and
was awarded a Bronze Lion at the Cannes Media awards in
2005
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Cadbury 5 Star Crunchy
Market Background:
Cadbury is the market leader in the chocolates category, with Cadbury 5 Star
being its second largest brand. Cadbury 5 Star which is unique bar of nougat
and caramel enrobed in Cadbury Dairy Milk Chocolate provides one of the most distinctive and
involving chocolate eat experiences. However in recent years the Cadbury 5 Star franchise was in
decline.
Competition
The brand was under threat from other more offerings in the market.
The Brand
Cadbury 5 Star needed to introduce an element of surprise in its eat experience to gain share
among lapsed consumers. To do this the variant Cadbury 5 Star Crunchy was launched- which still
had the richness of caramel, chewiness of nougat but also contained rice crispies.
The Strategy
The campaign was built around the proposition of an “unexpected
surprise" which had a surprise in every bit. This was creatively
expressed as “Naya Five Star Crunchy... Ab har bite main Arrey!"
In order to engage youth the campaign was executed across TV, radio, internet, outdoor and print
media.
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RESEARCH
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EMPIRIAL ANALYSIS
All of these four areas are frequently measure by questionnaire and often on the same
questionnaire.
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ACTUAL QUESTIONNAIRE:
Our questionnaire comprises of 11 simple questions. I have included all the three types of
questions namely open ended, close ended and multiple questions. Information desired form the
questionnaire:
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a) Yes
b) No
a. Branded
b. Non branded
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a) Cookies
b) Bar
c) Wafer
d) Other
4. If ask, to name top three brands of chocolates would you prefer to include Cadbury in that?
a) Yes
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b) No
6. How different is the style of expressing information in the ad comparing with other brands?
a) Not at all different
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b) Quite different
c) Very different
7. Have you seen our latest advertisement of Cadbury (Kuch Mitha Hojaye)?
a) Yes
b) No
8. The first thing that comes in your mind, when you see this ad?
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_______________________________________________________________________________
_________________________________________________________________
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b) No
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b) It’s Cadbury’s product
c) Both
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ATTRIBUTE POOR AVERAGE GOOD EXCELLENT
PROCEDURE OF RESEARCH
1. RESEARCH PROBLEM
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Seek the general perception of consumer towards CADBURY CHOCOLATE.
To know the consumer psyche and their behavior towards CADBURY CHOCOLATE.
2. RESEARCH OBJECTIVES
To know the factors which affects consumer’s buying behavior to purchase chocolates.
3. INFORMATION REQUIREMENT
• First, I had to know about all the competitors present in the chocolate segment (Reputed
and well established brands as well as Local brands).
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• Before going for the survey I had to know the comparative packs and prices of all the
competitors existing in the market.
• Since chocolate is a product that attracts children and youngsters hence I had to trace the
market and segment it, which mainly deals with people of various age groups.
• Multiple choice questions: Questions of this type offer the respondents an alternative to
choose the right answer among others. It is faster, time saving and less biased. It also
simplifies the tabulating process.
• Open end questions: In this type respondents are free to answer in their own words and
express the ideas they think are relevant, such questions are good as first questions or
opening questions. They introduce the subject and obtain general reaction.
• Dicthomus: these are the questions which are boolean in nature. These answers are
straightforward and respondents have to answer them in a straight way. That means the
answer can only be either ‘yes” or ‘no’.
5. SAMPLING
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Method : Direct interview through questionnaire.
FINDINGS
Findings constitute the core part of the body of the report. The findings section constitutes
the “Meat” of the report. Findings are the results of the study. This section makes up the bulk of
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the reports. The specific objectives of the study should be kept in mind and findings presented
with them in view. The list of information needed to achieve the objectives, which was prepared in
the problem formulation step, should limit the scope of the findings presented. Research has
suggested that,
Cadbury products are well known for their taste and quality as compared to other products.
I find the main thing is that “Cadbury” brand name has very good image in consumer’s mind
Almost 95% says, Cadbury chocolate is among the top 3 brand in the market
However the advertisement has created a new aspect of enjoying sweets after meal.
Pricing strategy of Cadbury is also influence the customer to purchase the product.
SUGGESTION
Company should launch chocolate in new attractive packing to change image of Cadbury
chocolate in consumers mind.
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Company should introduce sales promotion schemes like pranky, tattoo, contest, free gifts
etc.
Advertisement can be done with the help of animations that attracts children and teenagers
because chocolates are consumed largely in this segment.
Whenever Cadbury is coming with any new product they are doing promotional activity at
good level but they are not coming with the product at the same time. They are coming
with the long gap period.
LIMITATION
• Limited time available for interviewing the respondents. As a result of this it was not
possible to gather full information about the respondents.
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• When I interviewed children and teenagers, sometimes they use to give answers under the
influence of their parents or elders.
• If the respondents answer does not falls between amongst the options given then it will
turn up to be a biased answer.
CONCLUSION
• Brand management play vital role for any company weather it is services or product industry. It
differ one company’s product to other and it create value for the customer.
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• Cadbury Dairy Milk emerged as the No. 1 most trusted brand in Mumbai for the 2005 edition of
• Quality is the dominating aspect which influences consumer to purchase the product. In the
90’s Cadbury face many problems but they cope with the problem and now they are the leaders in
the market. Cadbury is having maximum market share compare to other brand.
• Cadbury is having aggressive a promotional activity which influences the consumer towards
• Cadbury position their brand not only for children but for youngsters and everybody in the
REFERENCES
Website:-
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• www.cadburyindia.com
• www.foster.com
• www.google.com
• www.pg.com
• www.scribd.com
• www.slideshare.com
Books:-
QUESSIONAIRE
1. Do you like chocolates?
a) Yes
b) No
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2. What kind of Chocolate do you eat?
a) Branded
b) Non branded
4. If ask, to name top three brands of chocolates would you prefer to include Cadbury in that?
a. Yes
b. No
a) Quality
b) Price
c) Advertisement
d) All of three
6. How different is the style of expressing information in the ad comparing with other brands?
a) Not at all different
b) Quite different
c) Very different
7. Have you seen our latest advertisement of Cadbury (Kuch Mitha Hojaye)?
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a) Yes
b) No
8. The first thing that comes in your mind, when you see this ad?
_______________________________________________________________________________
_________________________________________________________________
____________________________________________________________________________
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