Introduction
Chocolate and confectionary industry is one of the fast growing segments in the FMCG sector and is driven by some of the big brands in the country which are well established brands like Cadbury, Nestle, Amul, Ferrero and Mars. This report examines the brand architecture of two products from Cadbury Dairy Milk and Nestle KitKat. This report aims to bring out the differences in the brand architecture of these two brands and throws light on the varying brand image of these two brands in the mind of the consumers (in Indian context).
Brand Architecture
- Dairy Milk
- Kikat
Brand Comparison
Cadbury Dairy Milk: Segmentation, Targeting and Positioning
Segmentation
Income:
The price of Cadbury Dairy Milk is reasonable and affordable. They have product sizes ranging from Rs. 5 to Rs. 150. From their pricing strategy, it is quite evident that the brand segments its market on the basis of income catering to the needs of people by proving various chocolate bar sizes of all income groups. They have also recently started targeting the premium chocolate market segment which is extremely lucrative.
Geographical (Rural/Urban):
Traditionally Dairy Milk was targeted to the urban population. However, with the advent of its new advertisem*nt “Miss Palampur”, Cadbury Dairy Milk was targeted to the rural market with specific efforts to penetrate the rural geography. The ad was meant to increase the reach of the product to rural areas and develop preferences there. They also started with the introduction of smaller SKUs at a much lower price point beginning at Rs 5.
User Status – Impulse buying:
There are mainly the Impulse users found in the user status of Cadbury Dairy Milk who consume chocolates for indulgence purposes.
The occasion of Purchase:
The brand targets special occasions and festivals like Rakshabandhan, Diwali and New Year’s Day. The campaigns under “Iss Diwali aap kisse khush karenge” urged people to make the entities in their professional life or daily life happy focusing on the festival Diwali.
Psychographic - Indian Connect:
Cadbury planned to promote new ideas and occasions and give new reasons to the people to consume their product and associate 'meetha' with Dairy Milk in people's minds. It also utilized the strategy of using Indian traditions and customs to connect with people and form a special bond with them i.e. 'Indianization' of the brand, besides giving it a contemporary image to connect with the youth as well.
Breaking Stereotypes:
Cadbury Dairy Milk and Ogilvy & Mather launched a commercial under the ambit of the “Shubh Aarambh” campaign focusing on a middle class setup where the nervous wife tries a jeans for the first time and is reluctant to step out because she's worried what the neighbours and her mother-in-law would say.
Targeting
The company simply believes in providing the cotemporary sweet to the Indian household meant to satisfy the customers and match product availability targeting the mass market. Cadbury effectively shows this through their advertisem*nts about having Cadbury Dairy Milk as a sweet at every auspicious occasion.
Nestle KitKat: Segmentation, Targeting and Positioning
Segmentation
As of the year 2015, Nestle has a $14.1 mn market in India which accounts for 14% market share in India. Nestle has an extensive product line which includes KitKat, Munch, Milky Bar, After Eight and many more. Amongst the sale of Nestle chocolates, KitKat has annual sales of $6.07 mn in India, that is, 43.06% of its total revenues in India.
Income:
KitKat does demographic segmentation on the basis of Income. It mainly focuses on budget-conscious customers while segmenting on the basis of income. Probably, this is the reason they have not yet launched any chocolate beyond the price of Rs. 50. The price of KitKat bars typically range from Rs. 5 to Rs. 50. Hence, this makes it clear that KitKat segments on the basis of income, targeting those consumers who are budget-conscious.
Age Group:
KitKat also segments the market on the basis of age. It targets the youth (18-30) and adults (30-40) and not any other segment. None of its advertisem*nts explicitly target the elderly (aged 50 or above) or the kids (aged 15 or below). This brand connects with the youth the idea that Kit Kat Breaks help you look beyond the obvious is a strong conceptual message.
Psychographic:
KitKat segments the market on the basis of psychographic attitude attached with the brand. It focuses on the message that “Good things happen when you take a Kit Kat break”.
Attitude:
The above brand message has been communicated memorably through earlier TVCs – Squirrels (2010), Birds (2012) and then Dancing Babies (2013). For instance, in the dancing babies’ ad, a doctor while working in his working shift takes a Kit Kat break. He notices babies breaking into a dance routine while enjoying his chocolaty snack. The Kit Kat Break energises and refreshes the doctor and he starts grooving only to realise that his Kit Kat is over. The highlight of the TV Commercial is the infectious spontaneity and joy that you see in the babies. The creative advertisem*nt brings in a fresh emotional approach to bring alive the same message.
Personality – Reconnecting with senses:
Through KIT KAT’s entry into the premium category, Nestlé India, released KIT KAT SENSES and Reconnecting with senses is the essence of the new ad film which depicts that human connections have gone haywire because we have become a tech savvy generation constantly engaged with multiple interfaces and no peace of mind. In such a scenario, we are not able to make time for ourselves. Thereby, the brand wants to convey the importance of taking a break which is enriching
Behavioural - Life Stage:
KitKat mainly segments the market on the basis of Life Stage into two major segments – the college youth and the working individuals. The brand focuses on the working individuals who work for long tiresome hours and therefore, require a break to rejuvenate and refresh. Apart from the working class people, the brand targets college youth which is quite evident from their advertisem*nt of Squirrels (2010). The brand focuses on the word “break” to make the youth feel connected and re-energise them.
Targeting
Kit Kat’s target market is both men and women belonging to all age groups. The brand displays itself as “youthful” in nature, and focuses on that segment of consumers who are fond of chocolates, and are willing to indulge themselves in chocolaty snacks. Due to its tagline, “Have a break, have a KitKat”, the consumers are drawn to this brand due to its association with “breaks”. Its low prices, that have been constant over the past years, allow it to target the mass consumer market, as opposed to other premium chocolate brands like Ferrero-Rocher.
Brand Value
Best Swiss Brands 2016 positions Nestlé as the second most valuable Swiss brand. According to Brand Directory’s list of the most valuable brands of 2016 – ‘Global 500 companies 2016’, Nestle ranked 43rd.
It is imperative to note that Cadbury has the largest market segment at 55% and is being trailed by Nestle in India, the largest market share by chocolate type is Plain milk at 59% while the fastest growing segment is that of Dark chocolates. In terms of chocolate products, Cadbury has its forerunner as Dairy Milk at 49.38% whereas Nestle has Kitkat at 43.06%.
In 2015 Cadbury Dairy Milk has captured more than 30% of the market share of chocolates in India, far ahead of 5 Star, also a Cadbury product, with 7.9%. Kitkat only captured around 5.6% of the market.
Kitkat has a small share in the market in India, especially when compared to Dairy milk, so there is a lot of scope for the product in the country.
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