BRAND VALUE CHAIN OF DAIRY MILK -Amee panchal B-31 -Manan Joshi B-17 -Pooja Sheth B-53 -Tina Mittal B-25 -Supan Shah A-49 The brand value chain is a structured approach to assessing the sources and outcomes of brand equity and the manner by which marketing activities create brand value. The brand value chain consists of four value stages and three multipliers as: Value Stages: 1. Marketing Program Investment 2. Customer Mind-set 3. Market Performance 4. Shareholder Value. Multipliers: 1. Program Multiplier 2. Marketplace Multiplier and 3. Investor Multiplier
First Value Stage – Marketing Program Investment: The brand value creation process begins when the firm invests in a marketing program targeting its actual and potential consumers. This marketing program can be product research and development, design, trade or intermediary support, advertising, promotion, p romotion, sponsorship, direct or interactive marketing, personal selling, publicity, public relation and employee training. The product we will be talking about is Cadburys Dairy Milk.The pure taste of Cadbury Dairy Milk is the taste most Indians crave for when they think of Cadbury Dairy Milk. The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens & adults. Recently, Cadbury Dairy Milk Desserts was launched, specifically to
cater to the urge for 'something sweet' after meals. Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a delightful combination of milk chocolate and white chocolate. Giving consumers an exciting reason to keep coming back into the fun filled world of Cadbury. Cadbury Dairy Milk has launched its new ad campaign under the broad umbrella of ‘Kuch Meetha Ho Jaye’. The umbrella, initiated six years ago, has rolled out several sub-campaigns over the years – each with a separate message. What started off as a message that encouraged people to celebrate the small joys of life (‘Dil Ko Jab Khushi Chhoo Jaye, Kuch Meetha Ho Jaye’) and moved on to the celebrating overt occasions (‘Pappu Pass Ho Gaya’) has, for the past four years, been about occasion-led celebration. The campaign, Shubh Aarambh, is a tad different. Cadbury India latest ‘sugary’ campaign is titled- “khane ke baad, meethe mein kuch meetha ho jaye“. The craving for sweet tooth diggers for even a small piece of ‘meetha’ post dinner is quite pushy. The media mix for this campaign includes television, radio, digital, outdoor and print. The campaign also includes significant point of purchase (POP) activities. First Multiplier – Program Quality Multiplier The ability of the marketing program to affect the customer mind-set will depend on its quality. It has four major dimensions to judge the quality of a marketing program as: Clarity, Relevance, Distinctiveness and Consistency. Cadburys Dairy Milk analysis for program multiplier is as Clarity: It means how understandable the marketing program is for the customers? Cadbury's Dairy Milk campaign " Shubh Aarambh" ( meaning Auspicious Beginning ). The Shubh Aarambh campaign reinforces the occasion based positioning of Dairy Milk. The brand has been trying to position itself as a symbol of enjoyment and celebrations. Relevance; Do consumers feel that the brand is one they should seriously consider? How meaningful is the marketing program for the customers. Indians have the tradition of sharing sweets on auspicious occasions and also when one initiates a venture/activity. Whether the activity is small like writing an exam or huge like starting a company, sharing of sweets is an integral part of the event. The belief is that good things happen when one starts a venture on a positive note ( like sharing sweets).
Distinctiveness; How unique is the marketing program? How creative or differentiating is it? Shubh Aarambh has given the brand a broad playing ground. The concept is very much Indian and offers huge opportunity for creatives to weave great stories for the brand. The campaign takes the brand to the center of this tradition linking Dairy Milk to Sweet and Auspicious Beginning. And about the latest campaign “khane ke baad, meethe mein kuch meetha ho jaye“. The craving for sweet tooth diggers for even a small piece of ‘meetha’ post dinner is quite pushy. Consistency; How cohesive and well-integrated is the marketing program? Does it effectively relate with the past marketing programs and properly balance continuity, change and evolving the brand in the right direction? Cadburys has always tried to bring in new campaigns every now and then. Though ads are not that consistent in terms of their concept but there is consistency in terms of concept. They have always stressed on ‘meetha’ aspect. Second Value Stage – Customer Mind – set The customer mind-set includes everything that exists in the minds of the customers with respect to the brand. It includes thoughts, feelings, experiences, images, perceptions, beliefs, and attitudes. Five dimensions to measure the customer mind-set are as: Brand Awareness, Brand Associations, Brand Attitudes, Brand Attachment and Brand Activity. Brand Awareness: The extent and ease to which customers recall and recognize the brand and can identify the product features and attributes with which it is associated. Cadbury has high awareness among customers. This awareness mainly is as: It is commonly consumed by all age group. Available in different tastes and flavors and also in different sizes. Brand Associations: The strong, favorable and unique associations perceived by the customers about the brand. In case of Cadbury, It is a chocolate which has positioned it self as “In any consequences one can have the bite of it”. Brand Attitudes: Overall evaluation of the brand in terms of its quality and the satisfaction it generates. Cadbury can be called a generic chocolate as generally when one’s mind thinks about the
chocolate it thinks about Cadbury. It is liked by everyone as one celebrates the joy by eating Cadbury. Brand Attachment: The degree of loyalty the customer feels towards the brand. Few ad campaigns of Cadbury exhibits social unity and love among all relationships. Brand Activity: The extent to which customers use the brand, talk about it and seek the product related information. Cadbury has become the brand which is talked about on every joyful occasion. People want to try its different variants and keep looking for it.
Second Multiplier – Marketplace Condition Multiplier It has three factors as: Competitive Superiority, Channel and other intermediary support and Customer size and profile. Competitive Superiority: How effective are the marketing programs of the competing brands? Cadbury has market share of more than 30% in India which is highest among all its competitors. The pure taste of CDM defines the chocolate taste for the Indian consumer. Channel and other intermediary support: How much brand reinforcement and selling effort is being put forth by various marketing partners? They support their, marketing channel through media mix, which leverages television as the main channel and further builds up via print, radio, outdoor and internet. Customer size and profile: How many loyal customers the brand has and what type of customers are attracted to the brand? Are they profitable? Cadbury has the customers of all ages. They are highly profitable as they are not price sensitive but belong to quality conscious. All the variants of Cadbury is hit in the market.
Third Value Stage – Market Performance Customer mind-set affects how customers react in the marketplace in six main ways.
Premium Price: Customers of Cadburys dairy milk are willing to pay the premium price for quality products. Price Elasticity: No price elasticity of Cadburys Dairy Milk exists in the market. Market Share: Cadbury has a 70 percent market share in chocolates.Cadbury’s Dairy Milk (CDM) is its flagship brand, having a market share of 30% and average daily sales of 1 million bars. Cost Structure: Cadburys Dairy Milk has a very effective cost structure as company spend only in the advertising heavily and not on the trade promotions to maintain the marketing expenditures. Third Multiplier – Investor Sentiment It has four factors: Market dynamics, Growth potential, Risk profile and Brand contribution. Market dynamics: What are the dynamics of market as a whole (interest rates, investor sentiment, and supply of capital)? Growth potential: What is the growth potential or prospects for the brand in which it operates? There is not much of a growth potential as Chocolate market in India is very saturated.And majority of market is captured by Cadburys dairy milk only. Risk profile: What is the risk profile for the brand? Risk profile of Dairy milk is high as high competition exist in the market.There are various competitors for Cadbury like Nestle and Amul. Brand contribution: How important is the brand to the firm’s brand portfolio? Cadbury Dairy Milk has been the market leader in the chocolate category for years besides presence of its different variants in the market like Fruit & Nut, Crackle and Roast Almond.
Fourth value stage – Shareholder Value: Three important indicators for shareholder value are as: Stock price, The P/E ratio and Market capitalization This is not applicable in this case as Cadburys don’t have its shares in Indian market.
