Running Heading: BRAND AUDIT ON CADBURY DAIRY MILK, INDIA 1

Kathmandu University School of Management

Balkumari, Lalitpur

Brand Audit Report

Cadbury Dairy Milk : India

Submitted by:

Aagaman Ghimire (167026)

Kshitiz Shrestha (177099)

Pratibha Bhatta (177010)

Salil Raj Shakya (177093)

Shachee Shrestha ( 177105)

BBA 3 rd year, 2nd semester

Submitted to:

Mr. Sujan Raja Shrestha

Faculty of Product and Brand Management

July 14, 2020

BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 2

TABLE OF CONTENTS

CHAPTER 1- EXECUTIVE SUMMARY 3

CHAPTER 2- INTRODUCTION 4
2.1. Brand Background 4
2.2. Value Proposition 4
2.3. Consumer Analysis 5
2.4. Marketing Communications 7

CHAPTER 3- BRAND INVENTORY 9

3.1. Brand Element 9
3.2. Brand portfolio 13
3.3. Marketing Program 16
3.4. Product and Positioning Matrix 20
3.5. Brand Hierarchy 22
3.6. Competitive positioning matrix 25
3.7. Brand Audit Framework 27
3.8. Summary of Brand Inventory 31

CHAPTER 4- BRAND EXPLORATORY 33

4.1 Questions 33
4.2. Summary 34

CHAPTER 5- BRAND DESCRIPTIVE 37

5.1. Summary of survey and results 37

CHAPTER 6- PROTOTYPICAL KNOWLEDGE 41

CHAPTER 7- ANALYSIS OF FINDINGS 43

CHAPTER 8- RECOMMENDATIONS 44

REFERENCE 45

APPENDIX 46
BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 3

CHAPTER 1- EXECUTIVE SUMMARY

This study encompases the Brand Audit of Cadbury Dairy Milk with an in depth

analysis of every aspect of the brand. In the following pages, accounts of the brand's

marketing and branding are explored. Cadbury Dairy Milk has been able to engrave its name

in the hearts of people across the world which clearly depicts their consistency in branding

effort and creating positive customer perception.

This report includes a detailed brand inventory that provides an up to date itinerary of

how Cadbury Dairy Milk markets and brands its products, brand exploratory which showcases

the result of the survey conducted which comprehends what consumers feel about the brand

and brand descriptive which measures the belief and association of the customers.

In context of brand inventory, it was found that Cadbury Dairy Milk has been

implementing strategic marketing programs which has been able to build its brand equity,

instilling the brand as the golden standard of milk chocolate across the world. Through brand

exploratory, we found that when most consumers hear the word “Chocolate” at first, they

immediately thought of Cadbury Dairy Milk, which shows their strong brand equity. In

addition, it was also deduced that the customers were also awed by the brand’s creative

advertisements which impacted them emotionally. Lastly, after analysing the data collected

through the Focus Group Discussion and Survey, we were able to conclude that Cadbury

Dairy Milk has been able to make strong, favourable and positive association in the minds of

consumers.
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CHAPTER 2- INTRODUCTION

2.1. Brand Background

The brand ‘Cadbury’ was established in Birmingham, England in 1824 by its founder

John Cadbury. It is a British multinational confectionery company wholly owned by

Mondelez International since 2010.

Cadbury Dairy milk is one of the most popular product lines of Cadbury launched in

the early 1900s in the UK. Cadbury Dairy Milk chocolate is made with fresh liquid milk – a

glass and a half for every half pound of chocolate to be precise. It is available in more than 23

varieties, like Fruit & Nut, Whole Nut, Snack, Caramello and Breakaway, Cadbury Dairy

Milk delights consumers of all ages. It markets its product in 33 countries, including in the

UK, India, Australia and New Zealand.

Vision: “Working together to create brands people love”

Cadbury’s mission statement: Says simply, ‘Cadbury means quality’;this is our promise.

Our reputation is built upon quality; our commitment to continuous improvement will ensure

that our promise.

2.2. Value Proposition

Cadbury believes that quality chocolate should be affordable, they maintain a balance

between luxury brand and everyday brand to give the creamiest chocolate to the public. In

India, Cadbury is associated with simplicity, trust, quality, happiness and health. Cadbury’s

chocolate bars are made from real dark chocolate with similar designs worldwide. They are

available in 10.5 gm, 22 gm, 95 gm, 165 gm & other premium packs.The brand positions

itself as a premium chocolate synonymous to happiness. The brand is positioned as the

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“Perfect Expression of love”, “Kuch Meetha Ho Jaye', “Shubh Arambh” meaning, a symbol

of love, something sweet and perfect-lucky beginnings in India.

2.3. Consumer Analysis

Cadbury Dairy Milk initially used to target kids within the age of 5 to 10 years. But

market research revealed that the strategy was cutting out on a huge market segment of adults.

The company tried to advertise Dairy Milk as a snack together for both adults and kids, but

the strategy did not yield results. Therefore, Cadbury Dairy Milk distinguished its product

offerings for the different age groups to target children and adults separately. Hence, with the

campaign “The Real Taste of Life” Cadbury included adults in their target audience as well

re-defining the outlook of the brand from ‘just for kids’ to ‘kids in all of us.’

The segmentation of the target audience by Cadbury Dairymilk is based on a mix of

demographic, behavioural and psychological factors. Cadbury basically targets all types of

customers, whether they are young/ old or male/female.

Broadly, in order of priority, the Primary target market of Cadbury Dairy Milk are the youth,

Secondary target market are the children, Tertiary market is the entire family and the

Peripheral market is to replace sweets with Dairy Milk.

Demographic Segmentation

The demographic segmentation of the target audience of Cadbury Dairy Milk is as

follows:

Age: Cadbury targets people from age 5 to 50 years.

Gender: Irrespective of the gender, Cadbury Dairy Milk targets male and female with the

same strategies.
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Income: The price of Dairy Milk is reasonable and affordable compared to other chocolate

brands.

Geographic Segmentation

Cadbury Dairy Milk does not do geographic segmentation of the target audience in

detail. However, broadly, they segment the geography on the basis of the rural and urban

areas.

Behavioral Segmentation

On the basis of the needs and buying behaviour of the customers, the target audience

of Cadbury Dairy Milk on the basis of Behavioral Segmentation is as follows:

● Decision Roles:

The main decision role is played by the children and the youngsters. They are

generally the group who look for the latest information on the internet. They are

considered the leaders in product selection and respond to the opinions of opinion leaders

while making purchase decisions. Therefore, Dairy Milk has created different product

offerings for these two segments.

Dairy Milk Silk is marketed by targeting the youth especially as they follow trends the

most and the segment uses chocolates as gifts.

Similarly, in order to target the children, they created Dairy Milk Lickabales having

cartoons on the package and toys inside with the proposition of tasty, satisfactory and

healthy.

● Benefits Sought and User Rate

The benefits sought by different consumers of Dairy Milk are as follows:

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Target Group Benefits Sought User Rate

Children Desire For Chocolate 25% of the total sales

Youth Gift 45% of the total sales

B2B Revenue Generation 13% of the total sales

Parents/ Old people Having Dairy Milk as a 17% of the total sales
sweet

Psychographic Segmentation

In psychographic segmentation, the company focuses majorly on the youth on the

basis of their activities, interest and opinions. The youth are the most excited about accepting

new and innovative ideas. Also, they prefer the internet over traditional marketing mediums.

A different offering of Dairy Milk, “Dairy Milk Silk” was created for the youth. The youth

have the attitude towards Dairy Milk as being a gift item and therefore, Dairy Milk Silk was

launched to offer the customers with a unique and indulgent experience.

2.4. Marketing Communications

Over the decades, Cadbury Dairy Milk has firmly rooted itself into Indian consumers’

minds and hearts through timely product innovations, expansions and campaigns. With its

advertisements taking a heartwarming tone and its growing effort towards making a constant

stream of memorable marketing, the brand has been able to make a sweet connection with its

consumers. As a result, it has successfully been able to stay at the forefront of the consumer

minds.
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Cadbury Dairy Milk uses advertising to build a long-term image of the product.

Cadbury must therefore through its media posture be the market champion and carry the brand

message. Mondelez has chosen various communication media such as TVC, digital media,

radio, outdoor and print media to advertise Dairy Milk. Whenever there is a marketing

campaign to be done for Dairy Milk, Mondelez chooses all possible communication media

and delivers the same overall message from the various media it selects.

According to a research done in the communication media done by Mondelez for

Cadbury in India, TVC seems to be the most effective and Mondelez has invested in TVC

more than any other media that may be the reason why all the memorable Dairy Milk

advertisements come from its TVC advertisement. Outdoor Media also plays a significant role

in delivering the campaigns of Dairy Milk. Mondelez usually places their billboards and other

outdoor media mediums on popular junctions and cross streets across the major cities of India.

Mondelez also has its advertisement on digital platforms. It is comparatively recently,

Mondelez has focused its advertisement on the digital platform and also integrating its other

media with the digital media. We can usually find non-digital media advertisements of Dairy

Milk that include communal activation such as hashtags or sharing the photos integrated to the

theme of the campaign. Dairy Milk also has dedicated social media pages that share posts

specifically to promote and to create a buzz around the product. Mondelez website features all

the varieties of Dairy Milk available and also has their information, and details.
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CHAPTER 3- BRAND INVENTORY

3.1. Brand Element

Cadbury Dairy Milk always aimed for a bigger bite of the Indian market and it enjoys

a value market share over 70%. It has been able to sustain a strong position in the market

over the years. The brand elements of Cadbury Dairy Milk have contributed to their

consistency in success, helping them to elevate their brand equity. Few of the core brand

elements are listed below:

● Brand Name

Cadbury was named after the founder John Cadbury, but was originally called

“Cadbury Brothers” due to the partnership between John Cadbury and Benjamin Cadbury.

However, the company had no real success until John’s two sons took over the business

and later dropped the “Brothers” leaving the iconic Cadbury name.

In 2003, Cadbury dropped the 's' from its name and renamed the brand to Cadbury.

The reason behind this change was because the company found that it was a much more

suited, rounded name than the previous "Cadbury's". This change was officially

announced on 19 December 2002.

● Color
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Cadbury Dairy Milk has always had the combination of two complementary that is

purple and gold and white on the ‘Dairy Milk’ font on all its products. For just over a

century, a distinctive purple has been used on wrappers enveloping Cadbury’s Dairy Milk

chocolate bars. The colour, chosen because it was Queen Victoria’s favourite, even paints

Bournville train station, where Cadbury built its factory in Birmingham 140 years ago.

● Logo

2013-2019 2020- Present

Cadbury unveiled a fresh new look for the iconic wordmark in Australia in April. The

new identity which has been created with its new logo is to celebrate the brand’s inherent
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goodness spirit with a distinctive and modern twist. Details in the logo includes new

iconography and typography. The typography borders a redrawn wordmark that reportedly

drew inspiration from the hand of founder John Cadbury himself, “to create a beautifully

crafted signature with a more contemporary feel”. Taking inspiration from the former

logos, the Dairy Milk logotype has also been recrafted and is paired with a special pattern

based on the original 1905 pack.

● Packaging
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The packaging of Cadbury Dairy Milk is itself a legacy on its own. The iconic Dairy

Milk packaging features the nostalgic purple color with two cups pouring milk on the

chocolate or the on letters of the “I” of Dairy Milk. Throughout the history, the Dairy Milk

packaging has changed alot but has never generated a different perception in the minds of

the customers as the packaging changes they have made are always below the “Just

Noticeable Difference”. Just Noticeable Difference (JND) refers to the amount of

something that can be changed in order for a difference to be noticeable or detectable. The

changes made in the packaging of Dairy Milk can be seen throughout the years.

● Symbol

‘Glass and a Half” symbol has also been redesigned with the new logo so that it links

directly with the chunk of chocolate. It was originally used in 1928 on press and posters.
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First it was just on Cadbury Dairy Milk, but it has become the face of the company and

one of the key brand icons in recent years.

● Slogans

Cadbury Dairy Milk has various slogans specifically focusing on the India market.

‘Kuch Meetha Hojaye’, ‘Shubh Aarambh’, ’Taste Like This Feels’ and ‘Meethe Mein

Kuch Meetha Hojaye’ are the iconic and unforgettable slogans Cadbury had in its 72 years

of existence in the Indian market.

● Jingles

Cadbury Dairy Milk has also had catchy jingles in its operation in the Indian Market

that comes to us at the tip of our tongue. They are ‘Kuch Meetha Hojaye’, ‘Kuch khas Hai

Zindagi Mein’, ‘Shubh Aarambh’, ‘Pappu Paas Ho Gaya’, ‘Aaj Pehli Tareek Hai’ and

‘Kiss Me’.

3.2. Brand portfolio

Cadbury Dairy Milk Product Length

Product Cadbury Dairy Cadbury Dairy Cadbury Dairy Cadbury Dairy

Milk Milk Crackle Milk Caramel Milk Roasted
Almond

Price 50g- INR 40 36g- INR 40 200g- INR 237 36g- INR 46
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Distribution Directly sold to Directly sold to Directly sold to Directly sold to

wholesaler and wholesaler and wholesaler and wholesaler and
retailers retailers retailers retailers

Promotion Media mix for Media mix for Media mix for Media mix for
campaign campaign campaign campaign
comprisesTV, comprisesTV, comprisesTV, comprisesTV,
outdoor, internet outdoor, internet outdoor, internet outdoor, internet
and radio and radio and radio and radio

Product Cadbury Dairy Milk Cadbury Dairy Milk Cadbury Dairy Milk
Marvellous Crispello Fruit and Nuts
Creations

Price 75g- INR 83 33g- INR 30 165g- 305

Distribution Directly sold to Directly sold to Directly sold to

wholesaler and wholesaler and wholesaler and
retailers retailers retailers

Promotion Media mix for Media mix for Media mix for
campaign campaign campaign
comprisesTV, comprisesTV, comprisesTV,
outdoor, internet and outdoor, internet and outdoor, internet and
radio radio radio
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Cadbury Dairy Milk Silk Product Length

Product Cadbury Dairy Milk Cadbury Dairy Milk Cadbury Dairy Milk
Silk Silk Bubbly Silk Roast Almond

Price 150g- INR 160 120g- INR 160 137g- INR 150

Distribution Directly sold to Directly sold to Directly sold to

wholesaler and wholesaler and wholesaler and
retailers retailers retailers

Promotion Media mix for Media mix for Media mix for
campaign campaign campaign
comprisesTV, comprisesTV, comprisesTV,
outdoor, internet and outdoor, internet and outdoor, internet and
radio radio radio

Product Cadbury Dairy Milk Cadbury Dairy Milk Cadbury Dairy Milk
Silk Fruit and Nut Silk Caramello Silk Oreo

Price 137g- INR 165 136g- INR 150 130g- 170

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Distribution Directly sold to Directly sold to Directly sold to

wholesaler and wholesaler and wholesaler and
retailers retailers retailers

Promotion Media mix for Media mix for Media mix for
campaign campaign campaign
comprisesTV, comprisesTV, comprisesTV,
outdoor, internet and outdoor, internet and outdoor, internet and
radio radio radio

3.3. Marketing Program

Product Strategy

Cadbury Dairy Milk is a classic bar of deliciously creamy milk chocolate with higher

consistency of milk, equivalent to one and a half glass. Cadbury Dairy Milk has positioned

itself as something sweet that is necessary for everyone because of its exquisite taste. Over the

years, Cadbury Dairy Milk has offered many variants of the chocolate in different countries

and the decision to sell which product in what country is based on the demographic factors,

production costs, demand fluctuation, and competition presence.

Pricing Strategy

Cadbury Dairy Milk has several variants in the market to meet the expectations of

their customers. The brand strongly believes in providing the best quality product at moderate

cost so that they can make their products affordable. They various pricing strategies used by

Cadbury Dairy Milk are as follows:

● Skimming Pricing
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With skimming pricing, the prices of the product are set very high to take

advantage of some people's desire for a new product or design at any price. Cadbury

Dairy Milk’s Silk product length is kept at a slightly higher level than the competitors.

Silk is a premium variant of Dairy Milk and it aims to give an upmarket stretch to the

core brand.

● Value based Pricing

Value based pricing refers to setting product price based on how much the

customers believe what the brand is selling is worth. Cadbury Dairy Milk has come up

with different variants of their main products to reach out to a large audience base.

Cadbury dairy milk is offered in different sizes and is priced accordingly just so as to

cater to different customer segments. In this way, they have adopted the value based

pricing. Dairy Milk has enjoyed the trust of millions and it is reflected in the

company’s sales figures.

● Competitive Pricing

The market is experiencing the emergence of many chocolate brands trying to

please the taste buds of the consumers. This is bringing a rapid growth in the

competition which has made it necessary for Cadbury Dairy Milk to keep its price at

par with the rival companies.

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Premium Pricing

Competitive Parity Pricing

Value Pricing

Distribution Strategy

Cadbury Dairy Milk is directly sold to wholesalers and retailers. The distribution

channel of Cadbury Dairy Milk encompasses 2,100 distribution channels and 450,000

retailers. Mondelez International Inc. has adopted a diverse distribution channel. The more

diverse the distribution channel is, the less the bargaining power of the distributor. In addition,

channel expansion also gives the brand the opportunity to reach new customers, build brand

recognition and increase profitability.

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In this way, Cadbury Dairy Milk implements an intensive policy for distribution of its

products and it has been able to build a capable as well as efficient transportation chain. This

has resulted in Cadbury Dairy Milk being easily available in any grocery store, corner store

and supermarket.

Promotion Strategy

Cadbury Dairy Milk is taken as the golden standard for chocolate in many countries.

It has launched various memorable promotional activities appealing to the emotions of the

customers and it has successfully created an extensive brand awareness across the world. The

company has put in great effort to make its product reach the people through its catchy

commercials showcased in television, posters, newspaper, online and radio. There are various

kinds of taglines which are attached with various brands of Cadbury. In India, Cadbury has

“kuch meeta ho jai” which shows that the brand is trying to promote itself in the market of

sweets. The company also has various brand ambassadors for various types of products so that

each of them is used to make an impression in the mind of the people. Cadbury has not left

any stones unturned to promote itself.

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3.4. Product and Positioning Matrix

Dairy Milk Product and Positioning Matrix

Product Cadbury Dairy Milk/Cadbury Dairy Milk Silk

Primary Target Youth

Market

Secondary Target Children and Entire Family

Market

Usage/Occasions Replacement of Traditional Sweets, Gifts, Fashion Trend, Family

Occasions

Cadbury Dairy Milk and Dairy Milk Silk initially used to target kids within the age of

5 to 10 years. But market research revealed that the strategy was cutting out on a huge market

segment of adults. The company tried to advertise Dairy Milk and Dairy Milk Silk as a snack

together for both adults and kids, but the strategy did not yield results. Therefore, Cadbury

Dairy Milk and Dairy Milk Silk distinguished its product offerings for the different age groups

to target children and adults separately. Hence, with the campaign “The Real Taste of Life”

Cadbury included adults in their target audience as well re-defining the outlook of the brand

from ‘just for kids’ to ‘kids in all of us.’

Hence, it can be said that the main target market of Dairy Milk and Dairy Milk Silk is

the youth segment. India has the highest number of youth where 45% of the entire population

will consist of youths by the year 2050. The main characteristics identified in the youth

segment are:

● They are influenced by advertisements the most

● They have to be parallel with the ongoing fashion trends

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● The use of chocolates as a gifts are increasing

The youth segment is estimated to account for the 45% of the total sales for Dairy

Milk and Dairy Milk Silk. The gifting culture is growing in this market segment. Usually

gifting chocolates to friends, families and the significant others are quite trendy in this market

segment.

One of the secondary market segments for Cadbury Dairy Milk and dairy Milk Silk is

the children segment. We usually find children wanting to eat sweet candies and snacks in

which chocolate has a majority of the share. The word “Chocolate” has also become

synonymous with all the varieties of candies and toffees available in the Indian market. The

children market segment is estimated to account for 25% of the total sales for Dairy Milk and

Dairy Milk Silk.

The other secondary market segment for Dairy Milk and Dairy Milk Silk is the family

market. Cadbury is replacing the traditional sweets. Dairy Milk and Dairy Milk Silk wants to

invade the sweets that are used in festivals, home occasions and after dessert delicacy.

Cadbury estimates 17% of the total sales from this segment.

Loved by millions of people in over 30 countries around the world, Dairy milk and

Dairy Milk Silk generates around £500 million of sales each year. And no matter where in the

world Cadbury Dairy Milk and Dairy Milk Silk is enjoyed, there’s always a glass and a half of

fresh, natural milk in every half pound. Over the years, Cadbury has come up with different

positioning strategies;

CDM is for the kid in you: In the early days, the CDM (Cadbury Dairy Milk) brand

had a huge fan following among kids. In order to build stronger appeal among older age
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groups, the brand re-positioned itself through the ‘Real Taste of Life’ campaign in 1994. The

campaign positioned Cadbury Dairy Milk as the chocolate that awakened the little child in

every grown up.

CDM is for all occasions: With the launch of the Rs. 5 pack in 1998, CDM became

more affordable and hence more accessible for the masses. The ensuing positioning of

‘Khaane Waalon ko khaane ka Bahana Chhayie’ made consumption into a joyful, social

occasion.

CDM is a substitute for Indian sweets: In 2004, the `Kuch Meetha Ho Jaaye’

campaign was launched, seeking to increase CDM consumption by making it synonymous

with traditional sweets (Mithai).

CDM as a dessert: With the campaign ‘Khaane Ke Baad Meethe Mein Kuch Meetha

Ho Jaaye’, Cadbury’s aim was to introduce the thought of having a CDM as a post dinner

meetha (dessert).

3.5. Brand Hierarchy

Cadbury, formerly owned by Cadbury’s and Cadbury Schweppes, is a British

multinational confectionery company wholly owned by Mondelez International since 2010.

Mondelez International is an American multinational confectionery, food, holding and

beverage company based in Chicago, Illinois. Mondelez International owns and operates other

popular food and beverage brands like Milka, Côte d'Or, Toblerone, Green & Black's, Freia,

Marabou, Fry's etc. Cadbury began operating under Mondelez International on February 2,

2010. Even though Mondelez International owns and operates other food and beverage

brands, for the modesty of our report, we have chosen chocolate brands retained by Mondelez
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International. The chocolate brands acquired by Mondelez International are Milka, COTE

D’OR, Cadbury, Cadbury Dairy Milk, Cadbury Bourn Vita, Cadbury 5 Star, Toblerone and

Oreo.

A brand hierarchy is the systematic branching structure of a brand’s distinctive

elements for it’s sub-products. In the above brand hierarchy, we can see where Cadbury Dairy

Milk settles in the vast chocolate brands acquired by Mondelez International. We can also

examine the sub products Dairy Milk has in the vast sea of chocolates that are all under

Mondelez International. Before Mondelez acquired Cadbury, the company had a single brand.

Now, Mondelez International has molded Cadbury into three brands, they are Cadbury,

Cadbury Dairy Milk and Cadbury 5 star. Diving deeper into Cadbury Dairy Milk, it has

products in various shapes, packages and tastes and they are broadly divided into Bag and

Boxes, Single Bars and Bricks, Biscuits, and Drinks. Since there are hundreds of products
BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 24

under the brand name of Dairy Milk, for our report, we are narrowing down the audit to

Single Bars and Block Chocolates of Dairy Milk. There are two product categories of Single

Bars and Block Chocolates. They are Dairy Milk and Dairy Milk Silk. The product length of

Dairy Milk contains Dairy Milk, Crackle, Caramel, Roasted Almonds, Marvellous Creations,

Crispello and Fruit and Nuts. The product length of Dairy Milk Silk contains Silk, Silk

Bubbly, Fruit and Nuts, Roasted Almonds, Caramello and Oreo.

BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 25

3.6. Competitive positioning matrix

Product Cadbury Snickers Bounty Toblerone

Brands Dairy Milk

Corporate Mondelēz Mars, Mars, Mondelēz

Brands International, Incorporated Incorporated International,
Inc., Inc.,

Points of High quality High quality High quality High quality

Parity product, product, product, product,
consistency in consistency consistency in consistency in
taste and in taste and taste and taste and variety
variety in variety in variety in terms in terms of size
terms of size terms of size of size

Points of Associated Positioned as Unique taste Unique

Difference with food that with the flavor packaging,
celebration, kills hunger of coconut premium pricing
festivities, and has and quality
flexible unique flavor
pricing and
wide variety

Target 5-50 year old 5-50 year General 5-50 5-50 year old
Market urban as well olds looking year olds urban chocolate
as rural crowd for enthusiasts
nutritional
benefits
BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 26

Product Nestle Amul Hershey’s

Brands Chocolates

Corporate Nestlé Amul The Hershey

Brands Company

Points of High quality High quality High quality

Parity product, product, product,
consistency consistency consistency in
in taste and in taste and taste and variety
variety in variety in in terms of size
terms of size terms of size

Points of Associated Indian brand Premium

Difference with snacks pricing and
and as a premium
wafer quality

Target General 5-50 5-50 year old 5-50 year old

Market year olds urban crowd urban chocolate
enthusiasts
BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 27

3.7. Brand Audit Framework

SWOT ANALYSIS

Through the SWOT analysis, we have highlighted the key information which can give

us a detailed insight of the brand.

Strengths Weaknesses
● Cadbury Dairy Milk’s success is built on the ● Few years back there were reported cases of
ground of 3 factors: quality, value of money worm infestation which affected the its
and effective advertising brand image and credibility
● Market leader that covers 70% market share ● Weak Rural distribution penetration
● Recognized as a highly respectable company ● The variation of the product is not available
● Strongly connected to its customers all the time
emotionally ● Sales tends to be seasonal
● Has been able to construct a great brand ● Chocolates are not regarded as a healthy
recall, recognition value and brand loyalty snack
● Diverse distribution channel across the ● Lack of personalization and customizations
world which makes it easily accessible is making people to opt for other brands
● Offers diverse brand portfolio of products
that appeals to different market segment
● Possess strong ethical values and mission
statement

Opportunities Threats
● Cadbury Dairy Milk can focus on creating a ● Brand has already reached its maturity stage
better stronghold in the market to lessen the ● The raw materials cost of coco, milk etc. are
risk of growing competition rapidly increasing
● Cadbury Dairy Milk can venture in the Ice- ● Marketing expenditure in this category is
cream industry to diversify its portfolio and very high
lessen indirect competition ● Much of the people in India suffers from
● Rural population in India consists of nearly diabetes which can be a serious threat to
65% of the total population which Cadbury Dairy Milk
can capitalize on
● Cadbury can make sugar free chocolates for
people suffering from diabetes
BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 28

Three Circle Analysis

Nestle’s Munch is the second leading brand in Indian chocolate, covering 24% of the

market share. Nestle introduced a different range of confectioneries under Munch starting

from the chocolate coated wafer, munch nuts. Since Nestle’s Munch is one of the biggest

competitors to Cadbury Dairy Milk, we have conducted three circle analysis between these

leading brands.
BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 29

Dairy Milk’s Brand Strength

● Cadbury Dairy Milk’s success is built on the ground of 3 factors: quality, value of

money and effective advertising

● Market leader that covers 70% market share

● Recognized as a highly respectable company

● Strongly connected to its customers emotionally

● Has been able to construct a great brand recall, recognition value and brand loyalty

● Diverse distribution channel across the world which makes it easily accessible

● Offers diverse brand portfolio of products that appeals to different market segment

● Possess strong ethical values and mission statement

Nestle’s Munch Competitor Strength

● Aggressive marketing strategies

● Strong brand image

● Mainly targeting children with its low price products

● Targeting rural segments as well with its low priced products

Consumer’s Needs

● Affordable price

● Good quality

● Good taste

● Good texture
BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 30

● Accessible

● Customization

Potential Differentiators

● Strong brand recall

● Diversification of distribution network across the world

● Emotional connection among customers

● Campaign targeting to vast range of customers

● Two layer packaging to protect the quality of the chocolates

● Evolution of the packaging and flavors to adapt with the changing demand

● Positioning the chocolates with festivals and occasions

● Has made adapt itself with the Indian Culture

● Constant innovation and creativity in promotional activities

● Claim to have higher milk content

Dairy Milk’s Vulnerabilities

● Brand has already reached its maturity stage

● The raw materials cost of coco, milk etc. are rapidly increasing

● Marketing expenditure in this category is very high

● Much of the people in India suffers from diabetes which can be a serious threat to

Dairy Milk

Point of Parities

● Similar packaging

● Chocolate products
BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 31

● Similar and competitive pricing at lower price segments

● Offers value packs

3.8. Summary of Brand Inventory

Cadbury Dairy milk has been able to position itself as a mass oriented brand and

regards itself as a leader in terms of chocolate industry. The brand throughout its existence has

been able to maintain itself as a brand that caters the needs for every segment because of its

flexible pricing and availability of a wide variety of products. In terms of brand elements,

Cadbury dairy milk has stayed true to their roots and tried to make minimal changes. The

changes in the logo and slogans along with the packaging have been modified slightly to

match the change in market trend. Consistency in their brand elements has played some role

in taking the brand to the heights they have reached today. As mentioned above, Cadbury

dairy milk has been on top of their game when it comes to creating creative ads and

promotions. The creative ads along with its attempt to position itself as a brands synonyms to

festivities and happiness can play a significant role in uplifting the image of the brand.

As per the competitive positioning matrix, the competitive advantage of cadbury dairy

milk is mainly its flexible pricing, availability and existence of a wide variety of products. The

major point of difference between CDM and it’s competitors is that CDM have positioned

themselves as a substitute for local sweets during festivals and celebrations instead of just

trying to promote its legacy or its taste. Majority of Cadbury dairy milk’s competitors are

foriegn chocolate brands who have the same quality of products as them, which makes it

difficult for them to compete in terms or quality or taste. So, association with festivitivities,
BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 32

happiness and celebration is the best option to stand out in a saturated market. The depth in

Dairy Milk’s product line as well as strong distribution channel provides an opportunity to

increase their market share. Existence of Dairy Milk silk for the chocolate enthusiast with

premium price range and the normal dairy milk bar for the general mass has played a

significant role in building it’s image as a brand for the people.

BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 33

CHAPTER 4- BRAND EXPLORATORY

4.1 Questions

Focus Group Discussion

Date and Time

Sunday, 07/05/2020, 5:15 pm - 6:25 pm

Attendees

Abidha Shrestha

Abhisan Ghimire

Prashamsa Rijal

Samjhana Shrestha

Shubhanjan Paudel

Suyash Dahal

Questions

1. We’re going to be talking about the chocolate industry, so what are some things/trends

you have noticed happening in the chocolate industry?

2. When choosing a chocolate bar what are the three most important features/attributes

for you?

3. When I say chocolate what is the first brand that comes to your mind?

4. If you were looking to buy a chocolate what brand would you purchase?

5. What brand of chocolate would you use for consumption?

6. What brand of chocolate would you use for a gifting purpose?

BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 34

7. What brand of chocolate would you use for festivals?

8. Are you aware of these brands of chocolate; Nestle Kitkat, Cadbury Dairy Milk,

Hershey’s?

9. Would you choose Cadbury Dairy milk over kitkat and hershey’s?

10. What comes to your mind when you hear the word Cadbury Dairy Milk?

11. What do you like about Cadbury Dairy Milk?

12. What features do you like about Cadbury Dairy Milk?

13. How do you feel about the price you pay for Cadbury Dairy Milk?

14. Where do you usually buy Cadbury Dairy Milk from?

15. Are you aware about the advertisement Cadbury Dairy Milk does?

16. What do you think about their promotion strategies?

17. On a scale of 1 to 10, how much would you rate Cadbury dairy milk on following

factors; Price, Packaging, Taste and Customer Service ?

4.2. Summary

To dig deeper into consumer associations and brand image of Cadbury’s Dairy Milk,

we conducted a focus group of six respondents based on a convenience sample. Overall, we

discovered: 1) Cadbury’s Dairy Milk is not much famous among youths, 2) Everyone had

strong associations with Cadbury’s Dairy Milk, 3) Whenever participants would hear the word

“chocolate”, Cadbury’s Dairy Milk’s Image would pop in their mind, and 4)Participants think

Cadbury’s Dairy Milk is great value for money.

When asked, “When I say chocolate what is the first brand that comes to your mind?”,
BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 35

everyone’s answer was cadbury. One of the participants thought that Dairy Milk has become

synonymous to chocolate. All the participants thought of Cadbury as an easily accessible

brand that offers great variety to its customers, keeps them reminded of the brand via

interesting and emotional advertisements, includes a wide variety of price range making it

affordable to almost everyone and has been a biggest part of almost everyone’s childhood

memories. One of the participants even thought of Cadbury’s Dairy Milk as a “benchmark to

which I compare every chocolate I consume, and rarely does any chocolate surpass the

benchmark”.

Even though Cadbury’s Dairy Milk was almost all the participant’s choice when they

were a child. After growing up, 5 out of 6 participants did not prefer Dairy Milk for

consumption. One of the main reasons behind this was that the participants now preferred

dark chocolate. Although Cadbury's Dairy Milk has its own version of dark chocolate as

Cadbury’s Dark Milk, participants didn't find it upto the mark. They felt that the cocoa ratio in

the Dark Milk was not quite right for a dark chocolate. There was more sweetness than the

taste of cocoa, which is why the participants preferred dark chocolates from the competitor

brand which offered greater proportions of cocoa.

All the participants mentioned the nostalgia of their childhood memories, where

Cadbury Dairy Milk was their first choice and the only chocolate that they would get as a gift

from others (especially the celebration pack on occasions like birthdays, bhaitika, e.t.c.).

Almost everyone was familiar with the “Shubh Aarambh” advertisement and use of Amitabh

Bachchan for influential marketing. Participants also found the emotional appeal used in the

advertisements very convincing and could relate to it.

BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 36

The most liked fact about the brand was the price range, packaging, accessibility,

creative advertisements and the variety of products. The findings from the focus group

showed that participants thought Cadbury’s Dairy Milk was different from other brands

primarily because of the value for money it provides to its customers. One of the participants

termed cadbury as an “all rounder brand'', which is very well aware about what its customers

expect from it and has made every possible attempt to surpass those expectations. Another

customer associated the brand with “offering happiness”. The participant claimed that no

matter if one is sad or happy, Cadbury’s dairy Milk always uplifts one’s mood.
BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 37

CHAPTER 5- BRAND DESCRIPTIVE

5.1. Summary of survey and results

The focus group discussion revealed how adults were not much into Cadbury’s Dairy

Milk, even though it has been a major part of their sweet childhood memories. A survey was

further conducted to know about the association that adults had with the brand. The survey

questionnaire (refer to appendix 1) consisted of questions regarding the attributes of the brand

that were most likeable by the adults.

As we can see, the majority

of the participants (97.4%) are

adults. 79.5% of them are 18-24

years old, 10.3% 25-34 years old

and 7.7% 35-44 years old. Only

2.6% of the participants weren’t

adults. Thus, the survey became very efficient at addressing the issue that we uncovered in the

focus group discussion, respondents disliking the brand once they become adults.

43.6% of the respondents think of Cadbury whenever they hear the word “chocolate”,

while the second most

recalled brand is snickers

with almost half the score of

Cadbury (20.5%)
BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 38

When asked if they would stop purchasing Dairy Milk if a similar brand appears in the

market , only 7.7% said yes and 38.5% said no. This clearly shows that the customers prefer

Cadbury over any other similar brand existing in the market.

Most of the participants agreed that Cadbury’s Dairy Milk was attractively packaged,

easily available, offered huge variety,tasty and well advertised. While most of them didn’t

agree that Cadbury was reasonably priced. Which might be the reason why most of them

agreed that they would switch to another similar brand with half the price.
BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 39

Cadbury was ranked highest among the competitors in terms of reasonably priced,

easily accessible, huge variety, and well advertised. Whereas it wasn't the most attractively

packaged and tasty chocolate. This means that Cadbury needs to work on improving their

packaging and taste. Almost 80% of the respondents believed that Cadbury’s Dairy Milk was

well advertised, implying that the promotional strategies of the brand are working very well

with the customers.

When asked what comes to their mind when they hear Cadbury’s Dairy Milk, the

respondents replied, “celebration”, “delicious”, “mouth melting”, “soft”, “sweet”, “special”,

“tasty”, “yummy”, “chocolaty” and so on. Some of the respondents even associated it with the
BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 40

advertisements, “kiss me, close your eyes”, “how far will you go for love”, “kuch meetha ho

jaye” and so on.

The respondents marked Taste, price, and availability as the most important attributes

while purchasing a chocolate whereas country of origin and packaging as the least important.

Except for taste, cadbury has scored better than all its competitors in all the important

attributes. As the majority of the respondents of this survey were adults, the results implied

that Cadbury is still quite famous among the adults and they still consider Cadbury as their

first choice whenever they are purchasing chocolates.

BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 41

CHAPTER 6- PROTOTYPICAL KNOWLEDGE

The prototypical knowledge association structure for Cadbury Dairy Milk is based on

the conducted survey (Appendix 1) . It was found that the three highest rated attributes for

purchasing a chocolate were taste, availability, and value for money. When asked to rate the

same association with Cadbury Dairy Milk, it was found that 36 % of the respondents

associated taste, 39% associated availability and 18 % associated value for money with

Cadbury Dairy Milk. Additionally, some other attributes that Cadbury Dairy Milk was

associated with was Wide range of options (36%) and packaging (20%).

The knowledge structure shown, displays that the closest associated attributes for

Cadbury Dairy Milk are taste, availability and wide range of options. Associations that

weren’t highly rated for Cadbury Dairy milk i.e value for money, and packaging are placed at

a distance from Cadbury Dairy Milk on the structure. The associations which were rated to be

important when purchasing a chocolate .i.e. taste, availability, and value for money, among

which Cadbury Dairy Milk were highly rated in taste and availability. Hence they are placed

closer to the center.

Another category featured on the structure is advertisement. Associations like

creativity, emotions, gifting culture are placed closer to the center of the structure, while the

association with health benefits and premiums are placed farther away. This implies that

people have stronger association with Cadbury Dairy Milk’s advertisements than its health

benefits and premium nature.

BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 42
BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 43

CHAPTER 7- ANALYSIS OF FINDINGS

Cadbury Dairy Milk India is distributed under Mondelez India (subsidiary company

of Mondelez International) starting from the year 1984. The company is headquartered in

Mumbai as Mondelez India Foods Private Limited and is close to its 75th year of empowering

people to snack right in India.

As is evidenced by the primary and secondary survey conducted in this report,

consumers have strong, positive and unique associations with Cadbury Dairy Milk. It was

found that when most consumers hear the word “Chocolate” at first, they immediately think of

Cadbury Dairy Milk. Mostly youths of age group 18-24 and female purchases Cadbury Dairy

Milk. CDM’s primary target market is youths and secondary target market is children and

family. Consumers mostly came to know about the brand mostly through advertisements and

associate Cadbury Dairy milk mostly with its taste, consistency, wide variety of options, easy

availability and packaging.The pricing strategy used by the brand is mostly skimming pricing

for its premium range of chocolates and value based pricing for economical product range as

its one of the major feature is ‘value for money’. Besides, its advertisement campaigns are the

most effective and popular factor among the consumers. Consumers mostly purchase the

brand for consumption, and gifting purposes.

But, when asked relating it to its competitors like Hershey’s, and Nestle Kitkat

specially, it was found that most people wouldn’t choose Cadbury Dairy Milk over Hershey’s

specially for consumption purpose. The other competitors are Snickers, Bounty, Toblerone,

Amul chocolates and Hershey’s, of which Hershey’s and Nestle are two major competitors.

Similarly, People who crave dark chocolates do not have good options in Cadbury Dairy
BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 44

Milk’s product lines. However, the customer base for Cadbury Dairy Milk is very strong as

only 7.7 % of the participants have said they would stop buying Cadbury Dairy Milk if a

similar brand appears in the market.

CHAPTER 8- RECOMMENDATIONS

With references to the information and analysis presented in this report, below are a list of

recommendations Cadbury Dairy Milk can consider.

1. Brand Extension: Cadbury Dairy Milk can venture into the ice cream segment as it is

an indirect competition to chocolates and the brand can diversify the portfolio in

regard. The extension can be named as ‘Cadbury Dairy Milk Ice Cream’ which will

have the flavor of Classic Dairy Milk chocolate bar and other ingredients.

2. Healthy alternatives: Cadbury Dairy Milk can extend the brand with ‘Dairy Milk

Sugar Free’ chocolates for the people who suffer from Diabetes and still want to

experience the taste of Cadbury Dairy Milk. This can be an addition to its ‘30% sugar

free’ dairy chocolates.

3. Personalization and Customization: Consumer needs are changing and moving

towards personal and customized products which have an unique feature and made

specially for them. Cadbury Dairy Milk doesn't have personalized and customization

services for their chocolates. So it can be a competitive advantage for CDM if they

start personalization and customization services for their customers.

BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 45

4. Rural distribution: Cadbury Dairy Milk’ distribution channel is mostly inclined

towards urban cities. One of the weaknesses of CDM is their rural distribution. CDM

can increase their market share if they expand their distribution channel to rural parts

of the country and provide them with an economical line of their products.

REFERENCE

https://docs.google.com/forms/d/1nu_6XfyOOdO8FfpK6kXGU7RUjcEfv09jRMHqQYJlnm

U/viewanalytics

https://www.mondelezinternational.com/Our-Brands

https://www.cadbury.co.uk/products

https://en.wikipedia.org/wiki/History_of_Cadbury

https://www.slideshare.net/samarasil/marketing-cadbury

https://www.slideshare.net/swarajmishradigital/cadbury-dairy-milk-market-growth-future-proj

ections-bcg-matrix-consumer-behavior-porters-5-forces-model-market-competitors-critica-suc

cess-factors-and-distribution-channel

https://www.slideshare.net/chandan9211/brand-audit-of-cadbury-18839482

https://www.slideshare.net/RahulChanda7/brand-analysis-of-cadbury-dairy-milk-80736447
BRAND AUDIT OF CADBURY DAIRY MILK, INDIA 46

APPENDIX

Appendix 1
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