Cadbury :

Just Noticeable
Differences

Group -7
Akhil agarwal 19PT2-02
Hardeep Singh 19PT2-12
Prasanta Saha 19PT2-25
Vipul Bhagat 19PT2-38
Vipul Mahajan 20EMP1-21
Objective : To understand how has Cadbury smartly used JND technique for
their products

o To analyse how consumers are influenced by the JND by taking

example of Cadbury.
o To understand consumer’s perception, buying habits and
interpret their psychology.
o To understand if consumers analyse intrinsic details of ads or
understand them superficially.
o To gain insights of factors like exposure to light, brightness,
colour mix and object variety that affect the JND.
o To understand if the consumers psychologically connect with
promotion of a product.
o To know how consumers reaction to the perceived price.
What is JND?
• The just noticeable difference (JND), also known as the difference
threshold, is the minimum level of stimulation that a person can
detect 50 percent of the time.
• It is important not to confuse the just noticeable difference and
the absolute threshold.
• While the difference threshold involves the ability to detect
differences in stimulation levels, the absolute threshold refers to
the smallest detectable level of stimulation.
What is the use of JND for companies’ Marketing
Strategies?

• JND is a small change that is made by a particular brand made on

its products.
• Brands are more likely to reduce the risk of dilution of brand
identity & retain customers
• Consumers are unlikely to change their intentions unless the
promotional discount is above the JND
Literature Review :
Differential Threshold or Just Noticeable Difference (JND): This is the minimal
difference that can be detected between two similar stimuli.

Roy Morgan Research, 2016

Cadbury has been changing the packaging of Dairy Milk bars since 1905 when the first
bar was introduced in Australia, and in 2015 was the most popular chocolate bar.

Underwood and Klein’s (2015) research

• The research emphasized that packaging communicates information about the brand
which directly influences consumer beliefs and attitudes. For Cadbury, as a market
leader, it has great taste.
• JND technique is used so that design looks modern but consumers still identify it as
the same product.
• One of Cadbury’s changes, intentionally above the JND, was the addition of the
glasses of milk. Consumers are more concerned about the health of snacks, the
addition of the milk showed there was some level of nutrition through the calcium
intake.
• Size reduction : We only begin to notice a difference as the size reduction becomes
closer to our j.n.d which could be due to the frequency or amount of change.

Adams (1991)
• recognizes that the j.n.d. is different for every individual, which is why some people
have noticed the chocolate bar size reduction.
• People who view chocolate bars as high-involvement spend more time considering
each brands attributes, and are therefore more likely to notice a difference first.
HOW DO MARKETERS DETERMINE THE LIMITS OF CONSUMERS ACCEPTANCE?
Stern, M.K. and Johnson, J.H., 2010
• Practically JND can vary across trials hence it is determined by conducting multiple trials and then using the smallest levels
that participant could detect at least 50 percent of the time.

The intensity level of the stimulus

• If a light is very dim, people might be more likely to notice smaller changes in intensity than they would if those same
changes were made to a brighter light.

THE JND’S IMPLICATION FOR PRODUCT PRICING AND IMPROVEMENT

Companies seek to determine the relevant JNDs for their products for two reasons:
• To prevent changes such as reductions in product size, quality, or increase in the product price, from being becoming
readily discernible to the public.
• To ensure that product improvements are apparent to consumers, but without being wastefully extravagant.
Data Analysis :
JND IMPLICATION FOR PRODUCT PRICING
• Cadbury reduce the weight of their chocolate bar from 49 grams to 45
grams however price still remain the same.
• The reason for this change are due to rising fuel and cocoa prices as
claimed by Cadbury (Alleyne 2012).
• However the changes were below JND hence were accepted by customers.

JND IMPLICATION FOR LOGOS AND PACKAGING

• Cadbury wanted to update their existing package designs without losing the
recognition of loyal consumers. Hence they made a number of small
changes, carefully designed to fall below the JND so that consumer will
perceived only minimal difference between succeeding version.

• The key changes in the Cadbury packaging are:

 Brighter colors
 Lower case letters
 Addition of milk glasses
JND application in Cadbury
Product pricing
Cadbury apply this concept
of differential threshold in
pricing of two or more
products.
For example: different
chocolates of Cadbury
are with different price
range
Product packaging
Maintaining a uniform or
stable identity of product
consumer can identify easily
about the product and its
categories
Different chocolates of
Cadbury are identical.
Product extension
Extending the different variety
of chocolate under the
same brand.
Using the different modes of
publicity.
main idea: strengthen the
new products by the well-
established brand
reputation.
Identity retention
To create an unforgettable
identity in consumers mind
at or below just noticeable
difference to retain
established identity.
Cadbury updating their logo,
retain some recognizable
elements.
Compare the above and below JND
• Above JND
 Catch customer’s attention
 Product improvement (Different flavors of Cadbury chocolates – addition of
pictures)

• Just at JND
 Most efficient decision
 People perceive the differences (Addition of milk glasses)

• Below JND
 Feel less confident in their decision making
 Cause customers to become confused by offering an inconclusive
depiction of the product’s quality.
 Negative changes
• Low involvement products usually exist the negative changes
 Cut cost
 Make more profit
 Purchase without deeply consideration.
Learning
• Negative changes (e.g. reductions in product size or quality, or increase in product price)
NOT liked by the consumers  To be kept below JND
• Positive changes (e.g. improved or updated packaging, larger size or lower price) are
very apparent  should be noticeable to consumer
• Cadbury understood the sentiments of Indian consumers & safely utilized the JND for a
variety of products as well as the price.
• Product extension (Cadbury Celebrations)  loved by Indian consumers and accepted
as a substitute for sweets for traditional festivals
• Cadbury was able to keep the brand identity consistent through minimum changes in
their products and packaging
Recommendations

• Incorporation of product line extension by introducing Cadbury

ice-creams and Cadbury biscuits using same brand identity
(keeping the same colors and background)

• In future as well Cadbury could use the same strategy to expand

its offerings without diluting their brand identity.
Thank You