B R A N D VALUE C H A I N OF D A I R Y M I L K

-Amee panchal B - 3 1
-M a n a n Joshi B - 1 7
-Pooja Shet h B - 5 3
-Tina Mittal B - 2 5
-S u p a n S h a h A-4 9
The brand value chain is a structured approach to a s s e s s i n g the
sources an d outcomes of brand equity an d the m a n n e r b y which
marketing activities create brand value.

The brand value chain consists of four value stag e s and three
multipliers as:

Va l u e S t a g e s :
1. Marketing Prog ram I nvestment
2. Cu st ome r Mind- set
3. Market Performance
4. Shareholder Value.

Multipliers:
5. Pro gr am Multiplier
6. Marketplace Multiplier and
7. Inve stor Multiplier

F i r s t Va l u e S t a g e – M a r k e t i n g P r o g r a m I n v e s t m e n t :
The brand value creation process begins wh e n the firm invests in a
marketing p ro g r a m targeting its actual an d potential c onsum ers. This
marketing pr o g r am can be product research an d development, design,
trade or intermediary support, advertising, promotion, sponsorship,
direct or interactive marketing, personal selling, publicity, public
relation an d employee training.

The product we will be talking about is C a db u ry s Dairy Milk.The pure

taste of C adbury D airy Milk is the taste m o s t I n dian s crave for when
they think of C adbu ry Dairy Milk. The variants Fruit & Nut, Crackle and
Ro ast Almond, combine the classic taste of C adbury Dairy Milk with a
variety of ingredients an d are very popular a m o n g s t teens & adults.
Recently, C adbu ry Dairy Milk D e ss erts w a s launched, specifically to
cater to the u rg e for 'so methi ng sweet' after meals. C adbu ry D airy Milk
h a s exciting products o n offer - C adbu ry Dairy Milk Wowie, chocolate
with D is n e y characters e m b o s s e d in it, an d C adbu ry Dairy Milk 2 in 1,
a delightful combination of milk chocolate an d white chocolate. Giving
c o n s u m e r s a n exciting reason to keep co ming back into the fun filled
world of Cadbury.
C a dbu ry Dairy Milk h a s launched its n ew ad campai gn under the broad
umbrella of ‘Kuch Meetha H o Jaye’. The umbrella, initiated six years
ago, h a s rolled out several s u b - camp aig ns over the years – each with
a separate m e ssag e.
W h at started off a s a m e s s a g e that encouraged people to celebrate the
small joys of life (‘Dil K o Jab Kh u sh i C h h o o Jaye, K u c h Meetha Ho
Jaye’) an d m o v e d o n to the celebrating overt occasions (‘Pappu Pass
H o Gaya’) has, for the past four years, been about occasion-led
celebration. The campaign, S h u b h A a r a m b h , is a tad different.
C a dbu ry India latest ‘sugary’ c ampaign is titled- “khafie ke baad,
m eet he meifi kuch m e et h a 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 campai gn includes television, radio, digital,
outdoor an d print. The campaig n also includes significant point of
purchase (POP) activities.

First Multiplier – P ro gram Quality Multiplier

The ability of the marketing p ro g ra m to affect the customer min d- set
will depend o n its quality. It h a s four major dimensions to judge the
quality of a marketing p ro g r a m a s : Clarity, Relevance, Distinctiveness
an d Consistency.

C a dbu ry s Dairy Milk analysis for pr o g r am multiplier is a s Clarity: It

m e a n s h o w understandable the marketing pr o g r am is for the
c u st o m e r s ? C a db u ry ' s Dairy Milk campaign " S h u b h A a r a m b h "
( m e a n in g Auspicious Beginning ). The S h u b h A a r a m b h campaign
reinforces the occasion based positioning of D airy Milk. The brand h as
been trying to position itself a s a s y m bo l of enjoyment and
celebrations.

Relevafice; D o c o n s u m e r s feel that the brand i s one they should

seriously consider? H o w meaningful is the marketing pr o g r am for the
customers. In dian s h a v e the tradition of sharing sweets o n auspicious
occasions and also wh en on e initiates a venture/activity. Whether the
activity is small like writing a n e x a m or h u g e like starting a company,
sharing of sweets is a n integral part of the event. The belief is that
g o o d things happe n w he n on e starts a venture o n a positive note ( like
sharing sweets).
Distifictivefiess; How unique is t h e m ar k e t in g prog ram? How creative
or differentiating is it? Shubh Aarambh has given t h e bran d a broad
playing ground. The concept is v e r y m u c h I nd ian and offers huge
oppor t unit y for creatives t o weave great stories f or t h e brand. The
campaign takes t h e brand t o t h e center of this t radition linking Dairy
Milk t o Sweet and Auspicious Beginning. And abo ut t h e latest
campaign “khaf ie ke baad, me e t h e meifi kuch m ee t h a ho j a y e “ . The
craving f or sweet t o o t h diggers for even a small piece of ‘meet ha’ post
dinner is quit e pushy.

Cofisisteficy; How cohesive and well-int egrated is t h e market ing

program? Does it effectively relate w i t h t h e past m a rk e t in g programs
and properly balance cont inuity, change and evolving t h e bran d in the
r ight direction? Cadburys has always t ried t o bring in n e w campaigns
every no w and t he n. Though ads are n o t t h a t consistent in t e r m s of
t heir concept b ut t here is consistency in t e r m s of concept. They have
always stressed on ‘meetha’ aspect.
S e c o n d Va l u e S t a g e – C u s t o m e r M i n d – s e t
The cust omer m i n d - set includes everything t h a t exists in the
minds of t he customers w i t h respect t o t he brand. I t includes
t hought s, feelings, experiences, images, perceptions, beliefs, and
attitudes.

Five dimensions t o measure t h e customer m i n d - set are a s :

Brand Awareness, Brand Associations, Brand Attitudes, Brand
At tachment and Brand Activity.

B r a n d A w a r e n e s s : The e x t en t and ease t o which customers

recall and recognize t he brand and ca n identify t h e prod uct
features and at t ributes w i t h which it is associated. Cadbury has
high awareness a m o n g customers. This awareness ma inly is a s: I t
is c ommonly consumed b y all age g ro u p. Available in different
tastes and flavors and also in different sizes.

B r a n d A s s o c i a t i o n s : The st rong, favorable and unique

associations perceived b y t h e customers about t h e bran d. I n case of
Cadbury, I t is a chocolate which has positioned it self as “ I n a ny
consequences one can have t h e bite of it”.

B r a n d A t t i t u d e s : Overall evaluation of t he brand in t e r m s

of its quality and t h e satisfaction it generates. Cadbury can be
called a generic chocolate as generally wh e n one’s m i n d t hinks
about the
chocolate it t hinks about Cadbury. I t is liked b y everyone as one
celebrates t he j o y b y eating Cadbury.

B r a n d A t t a c h m e n t : The degree of loyalty t h e customer feels towards

t he brand. Few ad campaigns of Cadbury exhibits social u n it y and love
a m ong all relationships.

B r a n d A c t i v i t y : The e x t e n t t o which customers use t h e bran d, talk

about it and seek t h e product related in f o rma t io n. Cadbury has
become t he brand which is talked abo ut on every jo yf u l occasion.
People w a n t t o t r y its different variants and keep looking for it.

Second Multiplier – Marketplace Condition Multiplier

I t has three factors as : Competitive Superiority, Channel and other
int er mediar y support and Customer size and profile.

C o m p e t i t i v e S u p e r i o r i t y : How effective are t h e ma r k et in g programs

of t he competing brands?
Cadbury has m a r k e t share of m o r e t ha n 3 0 % in I n dia which is highest
a m ong all its compet it ors. The pure taste of CDM defines t h e chocolate
taste f or t he I ndia n consumer.

C h a n n e l a n d o t h e r i n t e r m e d i a r y s u p p o r t : How m u c h brand
reinforcement and selling eff ort is being p u t f or t h b y various market ing
partners?
They support their, ma rk e t in g channel t h r o u g h media m i x , which
leverages television as t h e m a i n channel and f u rt h e r builds u p via
print , radio, out doo r and internet .

C u s t o m e r s i z e a n d p r o f i l e : How m a n y loyal customers t he brand

has and w h a t t y pe of customers are at t ract ed t o t h e brand? Are they
profitable?
Cadbury has t he customers of all ages. They are highly profitable
as t h ey are not price sensitive b u t belong t o quality conscious. All
the variants of Cadbury is hit in t h e ma r k et .

T h i r d Va l u e S t a g e – M a r k e t P e r f o r m a n c e
Customer m i n d - set affects h o w customers react in t he marketplace in
six m ai n ways.
Premium Price: C us t o m e r s of Cad b urys dairy mi l k are willing to pay
the p r e m i u m price for quality products.
Price Elasticity: No price elasticity of Cad b urys Dai ry Milk exists in the
marke t.
Market Shar e: C ad b u r y has a 7 0 percent m a r k e t share in
chocolates.Cadbury’s Dai ry Milk ( C D M ) is its flagship brand, having a
m ar k e t share of 3 0 % and ave rage daily sales of 1 million bars.
Cost St r uc t ure: Ca db ur ys Dai ry Milk has a ve ry effective cost structure
as c o m p a n y sp e nd o nly in the advertising heavily and not o n the trade
promotions to mai nt ai n the marke t i ng expenditures.

Third Multiplier – Investor Sentiment

It has four factors: Market d ynami c s, Gr o w th potential, Ri sk profile
and B rand contribution.

Market dyf iamics: W hat are the d y nami c s of m ar k e t as a whole

(interest rates, investor sentime nt, and supp ly of capital)?

G r owt h pot efitial: W hat is the gro w th potential or prospects for the
b rand in which it operates? There is no t m u c h of a gro w th potential as
Chocolate m ar k e t in India is ve ry saturated.And majo ri ty of m a r k e t is
captured b y Cad b ur ys dairy mi l k only.

Risk prof ile: W hat is the risk profile for the brand? Risk profile of Dairy
m ilk is high as high competition exist in the marke t .The re are various
competitors for Ca d b ur y like Nestle and Amul.

Brafid cof it ribut iof i: H o w impo rtant is the b rand to the firm’s brand
portfolio? Ca d b u r y Dai ry Milk ha s be en the m a r k e t leader in the
chocolate category for ye ars besides presence of its different variants
in the m ar k e t like Fruit & Nut, Crackle and Ro ast Al mond.

F o u r t h v a l u e s t a g e – S h a r e h o l d e r Va l u e :
Three important indicators for shareholder value are a s : Stock
price, The P/E ratio and Market capitalization
This is not applicable in this case as Cad b ury s don’t h av e its
share s in
Indian marke t.