Brand Equity Measurement of Cadbury Dairy Milk
A report submitted to
Prof. S. Govindrajan
In partial fulfilment of the requirements of the course
Product and Brand Management
On 3-09-09 By Abhishek Das (B08002)
Nabila Azmatulla (B08018) Parikshit Ghoshal (B08021) Somnath Roy ~1~
Brand equity refers to the marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name. The brand equity model that we have developed is BrandWagon Brand Equity Model. This model addresses the short-term and long-term robustness of the brand. For testing the short-term robustness, we have taken 2 parameters: ― Loyalty index (Net Promoter Score model & share tier-behaviour) ― Loyalty driver (Multi attribute attitude model) For testing the long-term robustness, we have taken 2 parameters: ― Brand Malleability-tests the consistency and the insulation of the brand from trends (Share Tier approach & Psycho Social Connect) ― Brand Leveragability-tests the brand’s ability to perform well over the PLC (an adaptation of Millward Brown & a correlation test) Findings: ü Chocolate category has nearly 33% impulse purchase consumers. Of the remaining, Cadbury Dairy Milk fares the best on loyalty ü Cadbury Dairy Milk & 5 Star have a higher net promoter score compared to other brands. Hence, a more loyal customer base ü The loyalty drivers for Cadbury Dairy Milk are ease of availability, sweetness, softness and hygiene. ü The current brand ambassador and advertisements are not providing much value to the consumers. ü To a certain extent consumers are price sensitive. Cadbury Dairy Milk has a high market share (40%) and equity share (54.08%) mainly because of the superior quality perception. However, Bourneville on the other hand has a low share because of the high price. ü Contribution of loyal customers towards the chocolate category is 49.93% ü Cadbury Dairy Milk has high leveragability (81.47%) compared to its competitors who have a leveragability between 20% and 30%. ü But the categories that Cadbury Dairy Milk can extend into are the related and somewhat related categories like health drinks and biscuits followed by cheese and chewing gum ü Cadbury Dairy Milk is the brand that the consumer feels closest to and has the greatest regard for. ü Existence of Amul in the cheese category and Maggi in the noodles category makes it difficult for Cadbury Dairy Milk to enter this category and become a leader.
Recommendations: ü Product attributes not be tinkered with. ü More stress on ease of availability. ü The current Brand ambassador is not of much relevance to the consumer. So some modification on this aspect is required. ü Can extend into the health drink and biscuit segment. ü More variants can be introduced. ü Better advertising with celebration and sharing as the theme should be crafted.
Table of Contents
SERIAL NUMBER 1.) 2.)
CONTENTS Brand Equity Brand Equity Model Rational behind developing this model
PAGE NUMBER 5 6 7
BrandWagon Brand Equity Model Questionnaire Data Collection
8 14 15 26
Result and Analysis Recommendations
Brand equity refers to the marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name. At the root of these marketing effects is consumers' knowledge. In other words, consumers' knowledge about a brand makes manufacturers/advertisers respond differently or adopt appropriately adept measures for the marketing of the brand. The study of brand equity is increasingly popular, as a brand is one of the most valuable assets that a company has. Outcomes of Brand Equity are: à à à à Capability to charge a premium Capability to increase sales Capability to get a discount Capability to withstand...