BRAND MANEGEMENT MKT654

Assignment 10
Brand value chain analysis and Brand Hierarchy Levels

Submitted by:

Karan Trivedi AU1814018

Submitted to:

Prof. Jinal Parikh

Date: 17-04-2020

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Q.1. Pickup any brand and apply the value chain concept to it.

Ans) Brand Selected: - Cadbury Dairy Milk

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, sponsorship, direct or interactive
marketing, personal selling, publicity, public relation and employee training.

Cadbury Dairy Milk Variants: - Fruit & Nut, Crackle, Roast Almond.
Promotion Schemes: - 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.
Marketing Campaigns: - “Dil Ko Jab Khushi Chhoo Jaye, Kuch Meetha Ho Jaye”
“Pappu Pass Ho Gaya”
“Shubh Aarambh”
“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.

Clarity: It means how understandable the marketing program is for the customers? 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.

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 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.

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 centre 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: 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’ (sweetness) 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. The awareness mainly created by its mass availability in different taste and
flavours and also in different sizes.

Brand Associations: The strong, favourable and unique associations perceived by the customers
about the brand. In case of Cadbury, It is a chocolate which has positioned itself as “In any
consequences one can have the bite of it”.

Brand Attitudes: 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 exhibit 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.

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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)? Cadbury market is fragmented as lots of various chocolate brand are available
at competitive prices. But Cadbury over the years has created impact on consumer’s mind through
its wide reach and aggressive marketing.

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.

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 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

Q.2. What is the purpose of brand tracking studies and why are they conducting? Give any one
example.

Ans) Brand tracking studies allow marketers to monitor the health of the brand. They provide insights
into the effectiveness of marketing programs implemented by the company.
What to Track
Each brand faces different issues, which often required customized tracking surveys. Nonetheless, at
Relevant Insights, we always recommend our clients to include measurements of awareness, usage,
brand attitudes, perceptions, and purchase intent in brand tracking studies.
Example: Nestle India after the Maggi got release in the market again after the controversy, might
want to check consumers perception for the brand and their attitudes towards it.

When to Track
Brand tracking studies usually involve collecting quantitative data from consumers on a regular basis.
One way to do it is to continuously collect information. This would allow for control for unusual
marketing activities. Moreover, it would provide a more representative picture of how the brand
stands in consumers’ minds and against competitors. However, this type of brand tracking may not
be feasible due to budget and resource constraints. Hence, brand with deep pockets are more
susceptible to carry out this tracking. However, if continuous tracking is not feasible for an
organization, we can still collect data at certain points in time (monthly, quarterly, annually, etc.).
This approach may be equally effective, depending on how rapidly the industry is evolving.

When determining the frequency of data collection in brand tracking studies, we recommend clients
to consider:
• Frequency of product purchase: For example, durable goods with long purchase cycles can be
tracked less frequently.
• Marketing activity in the product category: A category where brands are constantly launching
marketing programs and promotions requires more frequent monitoring.
• Level of competition in product category: Highly competitive product categories, where new
products and competitors are constantly trying to break in, should be tracked regularly.
• Stability of brand associations: Brands with an established image that don’t change quickly over
time, can afford less frequent brand tracking.

Example: One plus might want to find out the reasons as to why are Indian people are preferring one
plus phone which are made in China after the Corona Virus outbreak

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Whom to Track
We often conduct brand tracking studies with current customers. However, monitoring the non-users
of the brand can prove to be invaluable. It can support the development of acquisition and market
penetration strategy in the search of business growth. Including non-customers who are active in the
category in your sample will also allow you to monitor your competition.

Example: Juggernaut t-shirts which are made for sports are also used by some people to wear on
casual occasions as a casual t-shirt.

How to Interpret Brand Tracking Metrics

Given the comparative nature of brand tracking studies, brand tracking measures tend to stay the
same over time. However, you should revise from time to time to assess their reliability and
sensibility. The metrics may show steady numbers over time and thus reflect the stability of brand
associations. However, they can also be unable to capture important shifts in the market due to
changes in sociodemographic trends, competitive landscape, and economic macrotrends.

Q.3. What are the 2 basic strategic tools of brand strategy?

Ans) The Two basic tools of brand strategy are:

• Brand product matrix: To characterize the product and branding strategy of a firm, one
useful tool is the brand-product matrix, a graphical representation of all the brands and
products sold by the firm. In the brand-product matrix all products offered under different
brands are represented by columns. This helps marketers understand the current brand line
and explore further opportunity in expanding the product line. In the brand-product
matrix all current existing brand are represented in form of rows referred to as brand
portfolio.

• Brand hierarchy: A brand hierarchy is a useful means of graphically portraying a firm’s

branding strategy by displaying the number and nature of common and distinctive brand
elements across the firm’s products, revealing their explicit ordering. It’s based on the
realization that we can brand a product in different ways depending on how many new and
existing brand elements we use and how we combine them for any one product.

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Q.4. Explain with an example brand hierarchy level.

Ans) Nivea Crème remains the lynchpin of the entire skin care product line. Having built its 100-
year-old Crème, Nivea continues to use this flagship product since it resonates well with consumers.

1. Corporate or company brand – Beiersdorf

The highest level of the hierarchy technically always consists of one brand—the corporate or
company brand. Corporate image as the consumer associations to the company. Corporate image is
particularly relevant when the corporate or company brand plays a prominent role in the branding
strategy.

2. Family brand – Nivea

At the next-lower level, a family brand, also called a range brand or umbrella brand, is used in more
than one product category but is not necessarily the name of the company or corporation. A family
brand may be distinct from the corporate or company brand, company level associations may be
less salient. Most firms typically support only a handful of family brands. If the corporate brand is
applied to a range of products, then it functions as a family brand too, and the two levels collapse to
one for those products Family brands thus can be an efficient means to link common associations to
multiple but distinct products.

3. Individual brand – Skin Care and Personal Care

Individual brands are restricted to essentially one product category, although multiple product types
may differ on the basis of model, package size, flavour, and so forth.

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4. Modifier (designating item or model) – Nivea
A modifier is a means to designate a specific item or model type or a particular version or
configuration of the product. Adding a modifier often can signal refinements or differences between
brands related to factors such as quality levels), attributes, function, and so forth.16 Thus, one
function of modifiers is to show how one brand variation relates to others in the same brand family.

5. Product description – What each product of Nivea does?

Although not considered a brand element per se, the product descriptor for the branded product may
be an important ingredient of branding strategy. The product descriptor helps consumers understand
what the product is and does and also helps define the relevant competition in consumers’ minds.
Skin Care and Personal Care. Nivea Crème, Nivea Soft, Nivea Deo

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