BM Assignment 1 - Group 5
BM Assignment 1 - Group 5
Cadbury, a British multinational confectionery company, has been fully owned by Mondelez
International since 2010. Headquartered in Uxbridge, United Kingdom with around 68% value
share and 62% volume share of the total chocolate market in India.
According to India Brand Equity Foundation , the company has shown a strong revenue growth
of 34% and net profit growth of 24%.
Cadbury Dairy Milk was introduced in the United Kingdom in the year 1905.
Brand Equity
The value of your brand to your business is known as brand equity. It is predicated on the notion
that a well-known, reliable brand outperforms a generic substitute in terms of success. It is
based on the idea that customers will buy a product that they are familiar with and confident in.
Your brand equity is extremely valuable when a customer recognises and trusts your brand to
the extent that they form a strong psychological connection with it.
When compared to a generic alternative, a company can command a higher price for a product
with a well-known brand. This is known as brand equity. Making products memorable, instantly
recognisable, superior in quality, and dependable helps businesses build brand equity for their
goods. Campaigns for mass marketing also aid in building brand equity.
Customers will happily pay a high price for a company's products when it has strong brand
equity, even though they could get the same thing for less from a rival. Customers essentially
pay a higher price to work with a company they trust and respect. The price difference goes to
the margin of the company with brand equity because it does not cost it more than its rivals to
produce.
Consumer perception, adverse or beneficial effects, and the resulting value make up the three
main parts of brand equity. Brand equity is primarily created by consumer perception, which
includes both knowledge of and experience with a brand and its products. Positive or negative
effects are directly related to how a consumer segment perceives a brand. The company, its
products, and its finances can all gain from strong brand equity.
Research plan
Brand Awareness
Brand awareness essentially represents the familiarity of the target audience with the product
and how much they recognize the brand. There is a direct correlation between the brand's
strength in memory and the ability of the audience to recognize elements such as logo, name,
packaging, and so on. Brand awareness is critical in distinguishing your product from
competitors. Two of the major measures to be considered for brand awareness is the brand
recognition and brand recall.
Brand awareness and image constitute major contributors to the brand equity of Cadbury.
Cadbury even enjoys a unique color identity with the color purple which studies have shown to
have affected the purchasing decision. Historically, the company has worked towards building
up its brand awareness among the target audience by:
● Ensuring product visibility to boost recognition
● Using simple logos that are easy to recollect
● A unique package that gives them an iconic - deep violet- identity
● Catchy slogans, advertisements that are easy to remember
Quantitative research techniques
1. Sensitive Recognition Test:
A list of products, with decoys, will be provided to the consumers to test whether they have
previously seen the product. They would also be asked to rate their confidence in the answers
that they have provided. The data set would also include masked versions of the major
competitors of Cadbury Dairy Milk and the different variations of Dairy Milk.
2. Aided Recall Test:
Cues can be used to help consumers recall the product. Competitor recall test results can then
be used to compare the competitive positioning of our brand. Changes in the brand recall can
then be used to measure the effect of advertising campaigns of Cadbury on competitors.
Questions such as:
“Which brand comes to mind when you think of chocolate?”
“If you were to indulge in chocolate consumption, which brand comes to mind first?”
Could provide insights into the knowledge consumer has of the brand.
Aided awareness is calculated as follows:
Aided tests can be employed in stores when the customers are presented with the same
product from different brands.
However, aided recalls might lead to consumers making up responses and can result in a wrong
strategic direction for the brand.
3. Unaided brand research test:
Unaided research is the highest form of brand recall wherein the consumer would be prompted
to list down chocolates without providing them with a list or visual display to choose from. This
manner, we will be able to understand the relative position of unprompted recall Diary Milk
enjoys as compared to competitors.
4. Social listening:
Cadbury Diary Milk has a strong social media presence. Rather than focusing on the number of
followers or other such metric, Diary Milk can listen to unsolicited opinion about the brand as
well as the competitors to understand the natural perceptions.
Brand Association
Brand Association is about how customers remember a brand. They are the images and
symbols associated with a brand or a brand benefit. In the case of Cadbury, some strong brand
associations can be the color “Purple” on the packaging, taste “Milky”, brand “British”
and “Indulgence”.
Different types of Brand association include both product and non-product related
attributes like: functional, experiential, symbolic benefits etc which might differ as per
favorability, strength and uniqueness.
Quantitative research techniques
→ Multidimensional Scaling (MDS)- It is used to determine the perceived relative images of a
set of objects, such as products or brands. MDS transforms consumer judgments of similarity or
preference into distances represented in perceptual space.
In case of assessing the brand association for Cadbury, we can ask the respondents to tell their
preference on the selected few attributes among the selected confectionery brands available
like Bournville, Nestle, Hershey etc.
For Example:
● Preference for Milk or Dark Chocolate
● Association with Family Celebrations
→ Open- ended measures for gauging the strength, favorability & uniqueness
● How do you associate with the following product characteristics (where 1 = strongly
disagree and 7 = strongly agree)?
Good Taste
Experience
Convenience
Personal Attachment
Brand Relationship
The term "brand relationship" refers to a series of contacts between a brand and a consumer
that begin to exhibit traits that are reminiscent of human relationships, such as love,
interdependence, commitment, connection, and intimacy.
A unique relationship that may benefit both sides is that which exists between a brand and a
customer. Customers form bonds with brands and view them as partners in their lives.
Customers relate to brands more as people as they gain significance and value.
Behavioral Loyalty:
Behavioral loyalty can be measured by asking questions to the customers regarding their
purchase behavior and their preference for dairy milk during the purchase. They can be asked
questions related to the number of times they choose dairy milk when making a purchase for a
similar category product i.e., chocolate. What percentage of their future purchases are being
planned to purchase Cadbury dairy milk. Certain questions that can be asked to the customers
are
1. Which brand of chocolate did you recently purchase?
2. Which brand of chocolate do you usually purchase?
3. Which brand of chocolate would you prefer to purchase the next time?
4. Which brands of chocolates did you consider purchasing?
This way, we not only get the information about the brand loyalty of the customers but also the
information about the nearest competitor that the customers consider buying.
Attitudinal Attachment:
Attitudinal attachment or the brand attachment of the customers can be measured by asking
questions on self-attachment with the brand, and the importance of the brand on a likert scale.
The questions can be
1. On a scale of 1-10, to what extent do you feel a personal connection with Cadbury dairy
milk?
2. On a scale of 1-10, to what extent is Cadbury dairy milk a part of who you are?
3. To what extent do your thoughts about Cadbury dairy milk often come on their own?
4. How much do your sentiments and ideas about Cadbury dairy milk flow to you promptly
and naturally?
Sense of Community:
A sense of community with a brand can be defined as the volume of brand or brand-related
information that consumers exchange in their regular social interactions. Consumers interact
with their social circle and vouch for the products or services of a particular brand by sharing
information. This can be measured by answering questions like
1. How often do you actively talk about Cadbury dairy milk in your circle?
2. How often do you recommend your friends to purchase Cadbury dairy milk?
3. How many people do you think feel they share useful knowledge about dairy milk with
others?
4. How many dairy milk customers can identify with those of other brands?
Active Engagement:
Active engagement for a brand is the degree to which customers are prepared to devote their
time, effort, money, etc., to the brand in addition to those used in the brand purchase or
consumption. This could be measured by the number of followers Cadbury dairy milk has on its
official social media handles, the number of likes a post gets, traffic to the website of Cadbury
dairy milk, etc.,
Qualitative research
The sorts of associations related to the brand and their accompanying strength, favourability,
and uniqueness can be discovered in various methods. Techniques for qualitative research are
frequently used to find potential brand linkages and brand equity sources. These very
unstructured measuring techniques allow for a wide range of questions and answers, making
them a suitable starting point for examining consumer impressions of brands and products.
In qualitative research, a researcher places less emphasis on facts and figures and more focus
on concepts, definitions, meanings, and comprehensive descriptions of objects. Qualitative
research techniques address how and why something occurs rather than what and how often it
happens.
When a brand name is present, brand equity is often assessed by the worth of the product's
characteristics and cost. However, indirect methods of measuring brand equity involve
evaluating potential sources, including brand awareness and consumer perception. This
enables the marketer to spot any differences in response that could result from brand
understanding, which would then affect brand equity. Due to the multi-dimensional nature of
brand knowledge, many memory tests, both aided and unaided, are used to capture the various
facets of brand knowledge to test brand identification and recall.
1) Free Association
Free association tests, in which individuals are asked what they think of when they think of the
brand without any more specific probe or cue than possibly the linked product category, are the
simplest and frequently most effective technique to profile brand connections. (What do you
associate with the term 'Cadbury Dairy Milk'?) or "Explain to me what 'Cadbury Dairy Milk'
makes you think of.
However, a free association may also give a rough indicator of brand connections' relative
strength, favorability, and uniqueness. Marketers employ free association activities primarily to
identify the spectrum of potential brand associations in consumers' brains.
Marketers use the answers to free-association questions to build a brand profile and explain the
spectrum of potential associations. We can ask customers follow-up questions regarding the
favorability of the associations they named or, more generally, what they appreciate best about
the brand to better understand the favorability of associations. Likewise, we can go further into
the distinctiveness of the associations they mentioned or, more broadly, what consumers find
distinctive about the brand.
1. Which aspect of Cadbury Dairy Milk do you like the most? What are its benefits or favorable
traits?
2. Which aspect of Cadbury Dairy Milk do you hate the most? What are its negative traits?
2) Projective Techniques
Different diagnostic tools to uncover true opinions of consumers in scenarios when they are
unwilling or unable to express their opinions on products or services
Technique - Consumers are either presented with an incomplete stimulus and are asked to
complete it or presented with an ambiguous stimulus and asked to make sense of it. This helps
in bringing out the true feelings and thoughts about the product of the customer which were
otherwise hidden
Used often when deeply rooted personal motivation or personally or socially sensitive
subjects are at issue.
Types
Rorschach test - Experimenters present ink blots to subjects and ask them what they think
about the ink blots. In this way, subjects may reveal certain characteristics of their own
subconsciously.
Dream Analysis and probing of the earliest defined memories can also be excellent ways.
Classic projective techniques like bubble exercises use incomplete or ambiguous stimuli to
elicit consumer thoughts and feelings
Comparison tasks where consumers convey their impressions of comparing brands to people,
countries, animals ,etc.
For example - In order to find out associations the consumer has with Cadbury dairy milk, they
may be asked to describe brands in the form of other commodities. Respondents might be also
asked to describe their own feelings towards the chocolate and what they like or dislike about it.
Basically, utilizes System 1 thinking which takes place subconsciously.
Reference
https://thesocialgrabber.com/branding-strategy-of-cadbury/
https://www.forbes.com/sites/forbescommunicationscouncil/2020/01/22/the-keys-to-measuring-
brand-awareness/?sh=19a7293040bf
Measuring Source of Brand Equity: Qualitative Techniques | Lee-Ann B (leeannbaugh.com)