CHAPTER-1

INTRODUCTION TO INDUSTRY

Chocolates

Chocolates! Chocolates!
Everybody has a liking for them, be they in the form of bar
Or a tiny little gem,
Or shaped like a rectangle,
Or a sphere, a brick or an éclair.
For chocolate lovers it is fun,
To have them during rain, breeze or sun.
They are white and brown in color,
And taste sweet and bitter
Some have them in a glass of cold coffee, or in the form of a toffee.
Some eat them when they are sad
Some relish them when they are happy or have sweet dreams,
But I feel, to have chocolates
We don’t need a reason,
‘Cause we can have it
Anytime, any season!

1
1.1 History of chocolate:

The origin of chocolate can be traced back to the ancient Maya and Aztec
civilizations in Central America, who first enjoyed “chocolati” a much-
prized spicy drink made from roasted cocoa beans.

Throughout its history, whether as cocoa or drinking chocolate beverage or

confectionary treat, chocolate has been a much sought after food.

The earliest record of chocolate was over fifteen hundred years ago in the
central America rain forests, where the tropical mix of high rain fall
combined with high year round temperatures and humidity provide the ideal
climate for cultivation of the plant from which chocolate is derived, the
cacao tree.

“ Chocolate is made from the cocoa bean, found in pods growing from the
trunk and lower branches of the cacao tree, Latin name “ the obroma
cacao” meaning “ food of the gods”

Cacao was corrupted into the more familiar “cocoa” by the early European
explorers. The Maya brewed a spicy, bittersweet drink by roasting and
pounding the seeds of the cacao tree with maize and capsicum peppers and
letting the mixture ferment. This drink was reserved for use in ceremonies as
well as for drinking by the wealthy and religious elite; they also ate cacao
2
porridge. The Aztecs, like the Mayans, also enjoyed cacao as a beverage
fermented from the raw beans, which again featured prominently in ritual
and as a luxury available only to the very wealthy. The Aztecs called this
drink xocolatl, the Spanish conquistadors found this almost impossible to
pronounce and so corrupted it to the easier “ chocolat” the English further
changed this to chocolate. The Aztec’s regarded chocolate as an aphrodisiac
and their emperor, Montezuma reputedly drank it fifty times a day from a
golden goblet and is quoted as saying of xocolatl: “ the divine drink, which
builds up resistance and fights fatigue. A cup of this precious drink permits a
man to walk for a whole day without food”

The Aztec empire

“Chocolate”(in the form of a luxury drink) was consumed in large quantities
by the aztecs: the drink was described as “ finely ground, soft, foamy,
reddish, bitter with chilli water, aromatic flowers, vanilla and wild bee
honey. The dry climate meant the Aztecs were unable to grow cocoa trees,
and had to obtain supplies of cocoa beans from “ tribute” or trade

Don Cortes
The Spanish invaded Mexico in the 16 th century, by this time the Aztecs had
created a powerful empire, and the Spanish armies conquered Mexico. Don
Cortes was made captain general and governor of Mexico. When he returned
to Spain in1528 he loaded his galleons with cocoa beans and equipment for
making the chocolate drink. Soon “chocolate” became a fashionable drink
enjoyed by the rich in Spain.

1.2 Chocolate in Europe

3
 Xocolatl! or chocolat or chocolate as it became known, was brought to
Europe by Cortez, by this time the conquistadors had learned to make the
drink more palatable to European tastes by mixing the ground roasted beans
with sugar and vanilla ( a practice still continued today), thus offsetting the
spicy bitterness of the brew the Aztec’s drank the first chocolate factories
opened in Spain, where the dried fermented beans brought back from the
new world by the Spanish treasure fleets were roasted and ground, and by
the early 17th century chocolate powder from which the European version of
the drink was made- was being exported to other parts of Europe. The
Spanish kept the source of the drink- the beans- a secret for many years, so
successfully in fact, that when English buccaneers boarded what they
thought was a Spanish “ treasurer galleon” in 1579, only to find it loaded
with what appeared to be “ dried sheep’s droppings, they burned the whole
ship in frustration. If only they had known, chocolate was so expensive at
that time, that it was worth it’s weight in silver ( if not gold), chocolate was
treasure indeed

Within a few years, the cocoa beverage made from the powder produced in
Spain had become popular throughout Europe, in the Spanish Netherlands,
Italy, France, Germany and – in about 1520 – it arrived in England. The first
chocolate house in England opened in London in 1657 followed rapidly by
many others. Like the already well established coffee houses, they were used
as clubs where the wealthy and business community met to smoke a clay
pipe of tobacco, conduct business and socialize over a cup of chocolate. An
Italian traveler, Francesco carletti, was the first to break the Spanish
monopoly. He had visited Central America and seen how the Indians

4
prepared the cocoa beans and how they made the drink, and by 1606
chocolate was well established in Italy

1.3 Back to the America’s

Event’s went full circle when English colonists carried chocolate (and
coffee) with them to England’s colonies in north America. Destined to
become the united states of America and Canada, they are now the world’s
largest consumers – by far – of both chocolate and coffee, consuming over
half of the words total production of chocolate alone.

1.4 Drinking chocolate

The secret of chocolate was taken to France in 1615, when Anne, daughter
of Phillip 2 of Spain married king Louis 13 of France

The French court enthusiastically adopted this new exotic drink, which was
considered to have medicinal benefits as well as being a nourishing food.
Gradually the custom of drinking chocolate spread across Europe, reaching
England in the 1650’s

1.5 First chocolate for eating

Up until this point all chocolate recipes were based on plain chocolate. It
was an English doctor, sir Hans’s sloane, who- after traveling in south
America- focused on cocoa and food values, bringing a milk chocolate
recipe back to England. The original Cadbury milk chocolate was prepared
to his recipe.

1.6 The Quakers

5
The Quakers were, and still are, a pacifist religious sect, an offshoot of the
puritans of English civil war and pilgrim fathers fame and a history of
chocolate would not be complete without mentioning their part in it. Some
of the most famous names in chocolate were Quakers, who for centuries held
a virtual monopoly of chocolate making in the English speaking world – fry,
Cadbury and row tree are probably the best known.

Its probably before the time of the English civil war between parliament and
king Charles 1st that the Quaker’s who evolved from the puritans, first
began their historic association with chocolate. Because of their pacifist
religion, they were prohibited from many normal business activities, so as an
industrious people with a strong belief in the work ethic (like the puritans),
they involved themselves in food related businesses and did very well.
Baking was a common occupation for them because bread was regarded as
the biblical “staff of life”, and bakers in England were the first to add
chocolate to cakes so it would be a natural progression for them to start
making pure chocolate. They were also heavily involved in breakfast cereals
but that’s another story. What is certain is that the fry, row tree and Cadbury
families in England among others, began chocolate making and in fact
Joseph fry of fry &sons (founded 1728 in Bristol, England) is credited with
producing and selling the world’s first chocolate bar. Fry’s have now all but
disappeared (taken over by Cadbury) and row tree have merged Swiss
company nestle, to form the largest chocolate manufacturer in the world.
Cadbury have stayed with chocolate production and are now, if not quite the
largest, probably one of the best-known chocolate makers in the world.

1.7 CONSUMPTION OF CHOCOLATES IN INDIA

6
Chocolate consumption in India is extremely low. Per capita consumption is
around 160 gms in the urban areas, compared to 8-10kg in the developed
countries. In rural areas, it is even lower. Chocolates in India are consumed
as indulgence and not as a snack food. A strong volume growth was
witnessed in the early 90’s when Cadbury repositioned chocolates from
children to adult consumption. The biggest opportunity is likely to stem
from increasing the consumer base. Leading players like Cadbury and Nestle
have been attempting to do this by value for money offerings, which are
affordable to the masses India Chocolate Market Outlook, 2021.

This press release was originally distributed by SBWire

New York, NY -- (SBWIRE) -- 10/31/2017 -- Chocolate is a typically sweet,

usually brown, food preparation of cocoa beans, roasted and ground, often
flavored, as with vanilla. It is made in the form of a liquid, paste or in a
block or used as a flavoring ingredient in other sweet foods. Chocolate has
become one of the most popular food types and flavors in the world, and a
vast number of foodstuffs involving chocolate have been created. India's
chocolate market has a positive outlook due to exceptional growth in the
confectionery industry, rising per capita income and gifting culture in the
country. The per capita consumption of chocolates has almost doubled from
2005 to 2012. Over the years, changes in consumers' preferences and
lifestyle, eating habits, and their global exposure to international brands have
given a boost to the chocolate industry. According to "India Chocolate
Market Outlook, 2021", chocolate market in India is expected to grow at a
CAGR of approximately 15% till 2021. Milk chocolate accounts for
majority of the revenues in the industry; however its share is likely to be

7
reduced in the forecast period due to growing popularity of dark chocolate.
Share of premium chocolate in the overall chocolate industry is anticipated
to increase up-to 27-30% by 2021, as the purchasing power and the
disposable income of people rises. The report reveals that Cadbury, Nestle
and Ferrero are the three leading players in India chocolate market. Cadbury
and Nestle together account for majority of the chocolate market revenues
whereas Ferrero is expected to overtake Nestle in the next two years, with
increasing popularity of Ferrero Rocher and Kinder Joy.

The entry into the chocolate market requires a large capital investment for
branding and production facilities. Also, facing the major international
players with established history and success is difficult. The key challenges
that the chocolate market is facing in India are inflationary pressures on raw
material prices, lack of government initiative, high entry barriers due to
duopolistic market and price-sensitive consumer. Rising sugar and cocoa
prices are putting pressure on companies to innovate with ingredients and
packaging. To offer better prices in mass market

Chocolate as we know it

8
The first mention of chocolate being eaten in solid form is when bakers in
England began adding cocoa powder to cakes in the mid 1600’s. Then in
1828 a Dutch chemist, Johannes van houten, invented a method of extracting
the bitter tasting fat or “cocoa butter” from the roasted ground beans, his aim
was to make the drink smoother and more palatable, however he
unknowingly paved the way for solid chocolate as we know it.

Chocolate as we know it today first appeared in 1847 when fry & sons of
Bristol, England – mixed sugar with cocoa powder and cocoa butter (made
by the van houten process) to produce the first solid chocolate bar then
in1875 a Swiss manufacturer,

Daniel peters, found a way to combine (some would say improve, some
would say ruin) cocoa powder and cocoa butter with sugar and dried milk
powder to produce the first milk chocolate.

1.8 CHOCOLATE PRODUCTION

9
The cocoa-bean -- the heart of the sweetest delicacy in the world -- is bitter!
This is why, up to the 18th century some native tribes ate only the sweetish
flesh of the cocoa fruit. They regarded the precious bean as waste or used it,
as was the case among the Aztecs, as a form of currency.

The Varieties

There are two quite different basic classifications of cocoa, under which
practically all varieties can be categorized: Criollo and Forastero cocoas.
The pure variety of the Criollo tree is found mainly in its native Ecuador and
Venezuela. The seeds are of finer quality than those of the Forastero variety.

They have a particularly fine, mild aroma and are, therefore, used only in the
production of high-quality chocolate and for blending. However, Criollo
cocoa accounts for only 10% of the world crop. The remaining 90% is
harvested from trees of the Forastero family, with its many hybrids and
varieties. The main growing area is West Africa. The cocoa tree can flourish
only in the hottest regions of the world.

The Harvest

10
Immediately after harvesting, the fruit is treated to prevent it from rotting. At
fermentation sites either in the plantation or at, collecting points, the fruit is
opened.

Fermentation

The fermentation process is decisive in the production of high quality raw

cocoa. The technique varies depending on the growing region.

Drying

After fermentation, the raw cocoa still contains far too much water; in fact
about 60%. Most of this has to be removed. What could be more natural
than to spread the beans out to dry on the sun-soaked ground or on mats?
After a week or so, all but a small percentage of the water has evaporated

11
Cleaning

Before the real processing begins, the raw cocoa is thoroughly cleaned by
passing through sieves, and by brushing. Finally, the last vestiges of wood,
jute fibres, sand and even the finest dust are extracted by powerful vacuum
equipment.

Roasting

The subsequent roasting process is primarily designed to develop the aroma.

The entire roasting process, during which the air in the nearly 10 feet high
furnaces reaches a temperature of 130 °C, is carried out automatically.

Crushing and shelling

12
The roasted beans are now broken into medium sized pieces in the crushing
machine.

Blending

Before grinding, the crushed beans are weighed and blended according to
special recipes. The secret of every chocolate factory lies in the special
mixing ratios, which it has developed for different types of cocoa.

Grinding

The crushed cocoa beans, which are still fairly coarse are now pre-ground by
special milling equipment and then fed on to rollers where they are ground
into a fine paste. The heat generated by the resulting pressure and friction
causes the cocoa butter (approximately 50% of the bean) contained in the
beans to melt, producing a thick, liquid mixture. This is dark brown in color
13
with a characteristic, strong odor. During cooling it gradually sets: this is the
cocoa paste. At this point the production process divides into two paths, but
which soon join again. A part of the cocoa paste is taken to large presses,
which extract the cocoa butter. The other part passes through various
blending and refining processes, during which some of the cocoa butter is
added to it. The two paths have rejoined.

Cocoa Butter

The cocoa butter has important functions. It not only forms part of every
recipe, but it also later gives the chocolate its fine structure, beautiful lustre
and delicate, attractive glaze.

Cocoa Powder

After the cocoa butter has left the press; cocoa cakes are left which still
contain a 10 to 20% proportion of fat depending on the intensity of
14
compression. These cakes are crushed again, ground to powder and finely
sifted in several stages and we obtain a dark, strongly aromatic powder,
which is excellent for the preparation of delicious drinks - cocoa. Cocoa
paste, cocoa butter, sugar and milk are the four basic ingredients for making
chocolate. By blending them in accordance with specific recipes the three
types of chocolate are obtained which form the basis of ever product
assortment, namely:

Kneading

In the case of milk chocolate for example, the cocoa paste, cocoa butter,
powdered or condensed milk, sugar and flavoring - maybe vanilla - go into
the mixer, where they are pulverized and kneaded.

Rolling

Depending on the design of the rolling mills, three or five vertically mounted
steel rollers rotate in opposite directions. Under heavy pressure they
pulverise the tiny particles of cocoa and sugar down to a size of approx. 30
microns. (One micron is a thousandth part of a millimetre.)

15
Conching

But still the chocolate paste is not smooth enough to satisfy our palates. But
within two or three days all that will have been put right. For during this
period the chocolate paste will be refined to such an extent in the conches
that it will flatter even the most discriminating palate. Conches (from the
Spanish word "concha", meaning a shell) is the name given to the troughs in
which 100 to 1000 kilograms of chocolate paste at a time can be heated up to
80 °C and, while being constantly stirred, is given a velvet smoothness by
the addition of certain amounts of cocoa butter. A kind of aeration of the
liquid chocolate paste then takes place in the conches: its bitter taste
gradually disappears and the flavor is fully developed. The chocolate no
longer seems sandy, but dissolves meltingly on the tongue. It has attained
the outstanding purity, which gives it its reputation.

CHAPTER – 2

COMPANY PROFILE

NESTLE
16
2.1 Nestle India
Nestle’ India is a subsidiary of Nestle’ S.A. of Switzerland. The company
insists on honesty, integrity and fairness in all aspects of its business and
expects the same in its relationships.

Nestle India- Presence across India

Beginning with its first investment in Moga in 1961, Nestlé’s regular and
substantial investments established that it was here to stay. In 1967, Nestlé
set up its next factory at Choladi (Tamil Nadu) as a pilot plant to process the
17
tea grown in the area into soluble tea. The Nanjangud factory (Karnataka),
became operational in 1989, the Samalkha factory (Haryana), in 1993 and in
1995 and 1997, Nestlé commissioned two factories in Goa at Ponda and
Bicholim respectively. Nestlé India is now putting up the 7th factory at Pant
Nagar in Uttaranchal.

Nestle’ Story

Nestlé was founded in 1867 on the shores of Lake Geneva in Vevey,

Switzerland and its first product was “Farine Lactée Nestlé”, an infant cereal
specially formulated by Henri Nestlé to provide and improve infant
nutrition. From its first historic merger with the Anglo-Swiss Condensed
Milk Company in 1905, Nestlé has grown to become the world’s largest and
most diversified food Company, and is about twice the size of its nearest
competitor in the food and beverage sector Nestlé’s trademark of birds in
a nest, derived from Henri Nestlé’s personal coat of arms, evokes the values
upon which he founded his Company. Namely, the values of security,
maternity and affection, nature and nourishment, family and tradition.
Today, it is not only the central element of Nestlé’s corporate identity but
serves to define the Company’s products, responsibilities, business practices,
ethics and goals. In 2004, Nestlé had around 247,000 employees worldwide,
operated 500 factories in approx. 100 countries and offered over 8,000
products to millions of consumers universally. The Company’s transparent
business practices, pioneering environment policy and respect for the
fundamental values of different cultures have earned it an enviable place in
the countries it operates in. Nestlé’s activities contribute to and nurture the

18
sustainable economic development of people, communities and nations.
Above all, Nestlé is dedicated to bringing the joy of ‘Good Food, Good Life’
to people throughout their lives, throughout the world.

In late September 2008, the Hong Kong government found melamine in a

Chinese-made Nestlé milk product. Six infants died from kidney damage,
and a further 860 babies were hospitalized. The Dairy Farm milk was made
by Nestlé's division in the Chinese coastal city Qingdao. Nestlé affirmed that
all its products were safe and were not made from milk adulterated with
melamine. On 2 October 2008, the Taiwan Health ministry announced that
six types of milk powders produced in China by Nestlé contained low-level
traces of melamine, and were "removed from the shelves".

As of 2013, Nestlé has implemented initiatives to prevent contamination and

utilizes what it calls a "factory and farmers" model that eliminates the
middleman. Farmers bring milk directly to a network of Nestlé-owned
collection centers, where a computerized system samples, tests, and tags
each batch of milk. To reduce further the risk of contamination at the source,
the company provides farmers with continuous training and assistance in
cow selection, feed quality, storage, and other areas.] In 2014, the company
opened the Nestlé Food Safety Institute (NFSI) in Beijing that will help meet
China's growing demand for healthy and safe food, one of the top three
concerns among Chinese consumers. The NFSI announced it would work
closely with authorities to help provide a scientific foundation for food-
safety policies and standards, with support to include early management of
food-safety issues and collaboration with local universities, research
institutes and government agencies on food-safety

19
After more than a century-old association with the country, today, NESTLÉ
India has presence across India with 8 manufacturing facilities and 4 branch
offices.

NESTLÉ India set up its first manufacturing facility at Moga (Punjab) in

1961 followed by its manufacturing facilities at Choladi (Tamil Nadu), in
1967; Nanjangud (Karnataka), in 1989; Samalkha (Haryana), in 1992; Ponda
and Bicholim (Goa), in 1995 and 1997, respectively; and Pantnagar
(Uttarakhand), in 2006. In 2012, Nestlé India set up its 8th manufacturing
facility at Tahliwal (Himachal Pradesh).  The 4 Branch Offices located at
Delhi, Mumbai, Chennai and Kolkata help facilitate the sales and marketing
activities. The NESTLÉ India’s Head Office is located in Gurgaon, Haryana.

Nestlé Milk Chocolate was created as a competitor to the more-established,

and North American chocolate bar segment-leader Hershey bar, and was
even created in a similar form as their competitor. The closest Nestlé product
to them is the Nestlé Crunch, which is very similar to Nestlé Milk
Chocolate, the main difference being that Nestlè Crunch has puffed rice,
while Nestlé Milk Chocolate does not. A similar product, Yorkie made by
Nestlé, is not to be confused with Nestlé Milk Chocolate as it is a
completely different product, as the Yorkie bar was originally created by
British firm Rowntree of York to compete with Cadbury Dairy Milk. Nestlé
also produces many other brands of chocolate/syrup.

2.2 CHOCOLATES & CONFECTIONARY

NESTLÉ KIT KAT
20
 NESTLÉ KIT KAT LITE

NESTLÉ MUNCH

NESTLÉ MUNCH POP CHOC

NESTLÉ MILKYBAR

NESTLÉ MILKYBAR CHOO

NESTLÉ BAR-ONE

NESTLÉ Milk Chocolate

NESTLÉ Eclairs

NESTLE KITKAT

They are crisp wafer fingers covered with choco layer. NESTLÉ KIT KAT
has a unique finger format with a ‘breaking' ritual attached to it. NESTLÉ

21
KIT KAT is one of the most successful brands in the world and every year
over 12 billion NESTLÉ KIT KAT fingers are consumed around the globe.

NESTLE MUNCH

NESTLÉ MUNCH is wafer layer covered with delicious choco layer.

NESTLÉ MUNCH is so crisp, light and irresistible that you just ‘can't stop
Munching.' NESTLÉ MUNCH is the largest selling SKU in the category!

NESTLE MILKY BAR:

NESTLÉ MILKYBAR is a delicious milky treat, which kids love.

Relaunched in January 2006 with a Calcium Rich recipe, NESTLÉ
MILKYBAR is a favorite with parents to treat their kids with.

NESTLE BAR-ONE

is a luscious nougat and caramel with delicious choco layer. NESTLÉ BAR-
ONE constantly reminds you that it is ‘Time for Action'.
22
NESTLE Milk Chocolate:

NESTLÉ Milk Chocolate is a milk chocolate with a delicious taste. Kids just
love it!

NESTLÉ Eclairs

NESTLÉ Eclairs with an irresistible outer layer of caramel and a yummy

milky filling, you will not find a better temptation.

2.3 CADBURY

How Cadbury Chocolate is made

23
John Cadbury

Early Days - A One Man Business

Birmingham 1824
John Cadbury was one of ten children of Richard Tapper Cadbury, a
prominent Quaker who had moved to Birmingham, England from the West
Country in 1794.
In 1824, 22-year-old John Cadbury opened his first shop at 93 Bull Street,
next to his father's drapery and silk business in the then fashionable part of
Birmingham.
Apart from selling tea and coffee, John Cadbury sold hops, mustard and a
new sideline - cocoa and drinking chocolate, which he prepared using a
mortar and pestle.

24
Cocoa and drinking chocolate had been introduced into England in the 1650s
but remained a luxury enjoyed by the elite of English society. Customers at
John Cadbury's shop were amongst the most prosperous Birmingham
families, the only ones who could afford the delicacy. Cocoa beans were
imported from South and Central America and the West Indies.
Experimenting with his mortar and pestle, John Cadbury produced a range
of cocoa and chocolate drinks, the latter with added sugar. The products
were sold in blocks: customers scraped a little off into a cup or saucepan and
added hot milk or water.
John Cadbury had a considerable flair for advertising and promotion. "John
Cadbury is desirous of introducing to particular notice 'Cocoa Nibs',
prepared by himself, an article affording a most nutritious beverage for
breakfast," announced his first advertisement in the Birmingham Gazette in
March 1824.
He soon established himself as one of the leading cocoa and drinking
chocolate traders in Birmingham. The popularity and growing sales of John
Cadbury's cocoa and drinking chocolate of 'superior quality' determined the
future direction of the business.
In 1831, John Cadbury rented a small factory in Crooked Lane not far from
his shop. He became a manufacturer of drinking chocolate and cocoa, laying
the foundation for the Cadbury chocolate business.
These early cocoa and drinking chocolates were balanced with potato starch
and sago flour to counter the high cocoa butter content, while other
ingredients were added to give healthy properties.
By 1842, John Cadbury was selling sixteen lines of drinking chocolate and
cocoa in cake and powder forms.

25
Cadbury, formerly  Cadbury's  and  Cadbury Schweppes, is a
British multinational confectionery company wholly owned by Mondelez
International (originally Kraft Foods) since 2010. It is the second-largest
confectionery brand in the world after Mars. Cadbury is internationally
headquartered in Uxbridge, West London, and operates in more than 50
countries worldwide. It is known for its Dairy Milk chocolate, the Creme
Egg and Roses selection box, and many other confectionery products. One
of the best-known British brands, in 2013 The Daily Telegraph named
Cadbury among Britain's most successful exports.

Cadbury was established in Birmingham, England in 1824, by John

Cadbury who sold tea, coffee and drinking chocolate. Cadbury developed
the business with his brother Benjamin, followed by his sons Richard and
George. George developed the Bournville estate, a model village designed to
give the company's workers improved living conditions. Dairy Milk
chocolate, introduced in 1905, used a higher proportion of milk within the
recipe compared with rival products. By 1914, the chocolate was the
company's best-selling product. Cadbury, alongside Rowntree's and Fry,
were the big three British confectionery manufacturers throughout much of
the nineteenth and twentieth century’s.

There was a great deal of competition from continental manufacturers, not

only the French, but also the Swiss, renowned for their milk chocolate.
Led by George Cadbury Junior, the Bourneville experts set out to meet the
challenge. A considerable amount of time and money was spent on research
and on new plant designed to produce the chocolate in larger quantities.

26
A recipe was formulated incorporating fresh milk, and production processes
were developed to produce a milk chocolate 'not merely as good as, but
better than' the imported milk chocolate'.

Four years of hard work were invested in the project and in 1905 what was
to be Cadbury's top selling brand was launched.

Three names were considered: Jersey, Highland Milk and Dairy Maid. Dairy
Maid became Dairy Milk, and Cadbury's Dairy Milk, with its unique flavour
and smooth creamy texture, was ready to challenge the Swiss domination of
the milk chocolate market.

By 1913 Dairy Milk had become the company's best selling line and in the
mid twenties Cadbury's Dairy Milk gained its status as the brand leader, a
position it has held ever since.

Cadbury has its head office at Cadbury House in the Uxbridge Business Park
in Uxbridge, London Borough of Hillingdon, England. The company
occupies 84,000 square feet (7,800 m2) of leased space inside Building 3 of
the business park, which it shares with Mondelez's UK division. After
acquiring Cadbury, Kraft confirmed that the company would remain at
Cadbury House.

Cadbury relocated to Uxbridge from its previous head office at 25 Berkeley

Square in Mayfair, City of Westminster in 2007 as a cost-saving measure. In
1992, the company leased the space for £55 per 1 square foot (0.093 m2); by
2002 this had reached £68.75 per square foot

After months of fiercely resisting any deal, Cadbury agreed on Tuesday to

an improved takeover offer from Kraft Foods, worth about $19 billion. ...
27
The Mail on Sunday, one of the biggest-selling British newspapers, ran a

“Keep Cadbury British” campaign.

COMPANY OVERVIEW OF CADBURY INDIA

Cadbury began its operations in 1948 by importing chocolates and then re-
packing them before distribution in the Indian market. After 59 years of
existence, it today has five company-owned manufacturing facilities at
Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi
(Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and
Chennai).the corporate office in Mumbai Currently Cadbury India operates
in three sectors viz. Chocolate Confectionery, Milk Food Drinks and in the
Candy category.

In the Chocolate Confectionery business, Cadbury has maintained its

undisputed leadership over the years. Some of the key brands are Cadbury
Dairy Milk, 5 Star, Perk, Éclairs and Celebrations. Cadbury enjoys a value
market share of over 70% - the highest Cadbury brand share in the world!
Their flagship brand Cadbury Dairy Milk is considered the "gold standard"

28
for chocolates in India. The pure taste of CDM defines the chocolate taste
for the Indian consumer.

In the Milk Food drinks segment their main product is Bourn vita - the
leading Malted Food Drink (MFD) in the country. Similarly in the
medicated candy category Halls is the undisputed leader.

The Cadbury India Brand Strategy has received consistent support through
simple but imaginative extensions to product categories and distribution. A
good example of this is the development of Bytes. Crispy wafers filled with
coca cream in the form of a bagged snack, Bytes is positioned as "The new
concept of sweet snacking". It delivers the taste of chocolate in the form of a
light snack, and thus heralds the entry of Cadbury India into the growing
bagged Snack Market, which has been dominated until now by Salted
Bagged Snack Brands. Bytes was first launched in South India in 2003.

Since 1965 Cadbury has also pioneered the development of cocoa

cultivation in India. For over two decades, it has worked with the Kerala
Agriculture University to undertake cocoa research and released clones,
hybrids that improve the cocoa yield.

Today, Cadbury is poised in its leap towards quantum growth and new
categories of business, namely gums, mints, snacking and gifting. It is a part
of the Cadbury Schweppes Group, world's No.1 Confectionery Company.

Currently, Cadbury India operates in five categories – Chocolate

confectionery, Beverages, Biscuits, Gum and Candy. Its products
include Cadbury Dairy Milk, Dairy Milk Silk, Bournville, 5-Star,

29
Temptations, Perk, Eclairs, Bournvita, Celebrations, Gems, Bubbaloo,
Cadbury Dairy Milk Shots, Toblerone, Halls, Bilkul, Tang, and Oreo.[113][114]

It is the market leader in the chocolate confectionery business with a market

share of over 70%.. On 21 April 2014, Cadbury India changed its name to
Mondelez India Foods Limited. In 2017, Cadbury/Mondelez agreed to pay a
$13 million FCPA penalty for making illicit payments to government
officials to obtain licences and approvals to build a factory in Baddi

CADBURY WORLD WIDE

Cadbury is the world's largest confectionery company and have a strong

regional presence in beverages in the Americas and Australia.

30
With origins stretching back over 200 years, today their products - which
include brands such as Cadbury, Schweppes, Halls, Trident, Dr Pepper,
Snapple, Trebor, Dentyne, Bubblicious and Bassett - are enjoyed in almost
every country around the world. We employ around 60,00 people.

Their heritage starts back in 1783 when Jacob Schweppe perfected his
process for manufacturing carbonated mineral water in Geneva, Switzerland.
And in 1824 John Cadbury opened in Birmingham selling cocoa and
chocolate.

These two great household names merged in 1969 to form Cadbury

Schweppes plc. Since then they have expanded their business throughout the
world by a programme of organic and acquisition led growth.

Concentrating on their core brands in beverages and confectionery since the

1980s, they have strengthened their portfolio through almost fifty
acquisitions, including brand icons such as Mott's, Canada Dry, Halls,
31
Trident, Dentyne, Bubblicious, Trebor, Bassett, Dr Pepper, 7 Up and
Snapple.

 It employ 60,000 people in over 200 countries

 Worlds No 1 Confectionery company

 World's No 2 Gums company

 World's No 3 beverage company

2019 reduction of family chocolate block size in Australia and New

Zealand[edit]

On 7 February 2019, Cadbury announced via its Facebook page that the size
of its family chocolate blocks will be reduced once again in Australia and
New Zealand, to 180g. “Rather than raising the recommended retail price,
we’ve made the call to reduce the size of our Cadbury family blocks, and
also bring down the recommended retail price slightly, so that our blocks can
continue to be an affordable treat for all Australians,” the company said.

2.4 CHOCOLATES

 Dairy Milk
 5 Star

 Perk

 Celebrations

32
  Temptation

 Eclairs

 Gems

DAIRY MILK

The story of Cadbury Dairy Milk started way back in 1905 at Bournville,
U.K., but the journey with chocolate lovers in India began in 1948. The
variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste
of Cadbury Dairy Milk with a variety of ingredients and are very popular
amongst teens & adults. Cadbury Dairy Milk has exciting products on offer -
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. Giving consumers an exciting reason to keep
coming back into the fun filled world of Cadbury. Today, Cadbury Dairy
Milk alone holds 30% value share of the Indian chocolate market

5 STAR

33
The second largest after Cadbury Dairy Milk with a market share of 14%,
Cadbury 5 Star moves from strength to strength every year by increasing its
user base. Launched in 1969 as a bar of chocolate that was hard outside with
soft caramel nougat inside, Cadbury 5 Star has re-invented itself over the
years to keep satisfying the consumers taste for a high quality & different
chocolate eating experience.

One of the key properties that Cadbury 5 Star was associated with was its
classic Gold colour. And through the passage of time, this was one property
that both, the brand and the consumer stuck to as a valuable association.
More recently, to give consumers another reason to come into the Cadbury 5
Star fold, Cadbury 5 Star Crunchy was launched. The same delicious
Cadbury 5 Star was now available with a dash of rice crispies.

PERK

Cadbury launched Perk in 1996. With its light chocolate and wafer
construct, Cadbury Perk targeted the casual snacking space that was
dominated primarily by chips & wafers.

With the rise of more value-for-money brands in the wafer chocolate

segment, Cadbury Perk unveiled two new offerings - Perk XL and XXL. In
2004, with an added dose of 'Real Cadbury Dairy Milk' and an 'improved
wafer', Perk became even more irresistible

34
 CELEBRATIONS

Cadbury Celebrations was aimed at replacing traditional gifting options like

Mithai and dry- fruits during festive seasons. Cadbury Celebrations is
available in several assortments: An assortment of chocolates like 5 Star,
Perk, Gems, Dairy Milk and Nutties and rich dry fruits enrobed in Cadbury
dairy milk chocolate in 5 variants, Almond magic, raisin magic, cashew
magic, nut butterscotch and caramels. The super premium Celebrations Rich
Dry Fruit Collection which is a festive offering is an exotic range of
chocolate covered dry fruits and nuts in various flavours and the premium
dark chocolate range which is exotic dark chocolate in luscious flavours.

35
TEMPTATION

Cadbury Temptations is a range of delicious premium chocolate in five

flavors variants - Roast Almond Coffee, Honey Apricot, Mint Crunch, Black
Forestand Old Jamaica.

ECLARIS

A smooth of Cadbury milk chocolates, encased in deliciously chewy golden

caramel

GEMS

Cadbury Gems is colorful and fun outside, delicious and chocolaty inside.
It can be used to decorate puddings, biscuits, cakes, family chocolates and
cookies

CHAPTER – 3
36
 RESEARCH METHODOLOGY

INTRODUCTION
In this research I have survey the product performance and buying behavior
of two famous brands of chocolates – Nestle and Cadbury, which are
consumed by people of all ages. During this research I have interacted with
people of “MODEL TOWN NEW DELHI”. After this research I came to
know how people perceives these products on the variables like price,
quality, advertisement, satisfaction, taste, packaging, brand loyalty etc. I also
came to know which particular brand of chocolate is most preferred by
people of different age groups. In this research I have surveyed that how
frequently and how much chocolate they consume, whether they buy small,
big or family pack. Trend of ongoing changes in their likings has been
shown in the report. In this report I have tried to explain the entire research
and facts product wise.

3.1 OBJECTIVES OF THE STUDY

This project is based on the STUDY OF CONSUMER PREFERENCE
TOWARDS CADBURY AND NESTLE CHOCOLATES. Objectives
of the study are:

1. The other objective is to know about the customer satisfaction level

associated with the product and the customer preference level.

2. To study the factors affecting the consumption pattern.

This chapter describes the methodology of the study. This project is based
on information collected from primary sources. After the detailed study, an

37
attempt has been made to present comprehensive analysis of consumption of
Cadbury and nestle chocolates consumed by the people. The data had been
used to cover various aspects like consumption, consumer’s preference and
customer’s satisfaction regarding Cadbury and Nestle chocolates. In
collecting requisite data and information regarding the topic selected, I went
to the residents of Ludhiana and collected the data.

3.2 SCOPE OF THE STUDY

As learning is a human activity and is as natural, as breathing. Despite of the
fact that learning is all pervasive in our lives, psychologists do not agree on
how learning takes place. How individuals learn is a matter of interest to
marketers. They want to teach consumers in their roles as their roles as
consumers. They want consumers to learn about their products, product
attributes, potential consumers benefit, how to use, maintain or even dispose
of the product and new ways of behaving that will satisfy not only the
consumer’s needs, but the marketer’s objectives.

The scope of my study restricts itself to the analysis of consumer

preferences, perception and consumption of Cadbury and Nestle Chocolates.
There are many other brands of chocolates available but my study is limited
to two major players of chocolates leaving behind the others. The scope of
my study is also restricts itself to MODEL TOWN NEW DELHI region
only

3.3 Survey design:

38
The study is a cross sectional study because the data were collected at a
single point of time. For the purpose of present study a related sample of
population was selected on the basis of convenience.

3.4 Sample Size and Design:

A sample of 100 people was taken on the basis of convenience. The actual
consumers were contacted on the basis of random sampling.

3.5 Research Period:

Research work is only carried for 2 or 3 weeks.

3.6 Research Instrument:

This work is carried out through self-administered questionnaires. The
questions included were open ended, dichotomous and offered multiple
choices.

3.7 Data Collection:

The data, which is collected for the purpose of study, is divided into 2 bases:
 Primary Source: The primary data comprises information survey of
“STUDY OF CONSUMER PREFERENCE TOWARDS
CADBURY AND NESTLE CHOCOLATES”. The data has been
collected directly from respondent with the help of structured
questionnaires.
 Secondary Source: The secondary data was collected from internet,
References from Library.

39
3.8 Data Analysis:
The data is analyzed on the basis of suitable tables by using mathematical
techniques. The technique that I have used is bar technique.

3.9 LIMITATIONS OF THE STUDY

In attempt to make this project authentic and reliable, every possible aspect
of the topic was kept in mind. Nevertheless, despite of fact constraints were
at play during the formulation of this project. The main limitations are as
follows:

 Due to limitation of time only few people were selected for the study.
So the sample of consumers was not enough to generalize the findings
of the study.

 The main source of data for the study was primary data with the help
of self-administered questionnaires. Hence, the chances of unbiased
information are less.

 People were hesitant to disclose the true facts.

 The chance of biased response can’t be eliminated though all

necessary steps were taken to avoid the same.

CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

40
  LIKING FOR THE CHOCOLATES

Table:1

Liking for the Yes No

Chocolate

Number of 95 5
Respondents

Liking For the Chocolate

95
100
Number of Persons

80
60 Yes
40 No
20 5
0
Response
1

Chart:1

From the above analysis of the given sample of 100 respondents it is

concluded that out of 100 people 95 people likes to eat chocolate while only
5 people don’t prefer to eat chocolate.

 DIFFERENT AGE GROUPS

Table:2
AGE GROUPS 0-10 10-20 20-30 Above 30

41
 NUMBER OF 15 45 23 17
RESPONDENTS

Chart:2

According to the above analysis it is concluded that I have surveyed 100

respondents out of which 15, 45, 23, 17 belongs to age group 0-10, 10-20,
20-30, above30 respectively.

 PREFERENCE ACCORDING TO AGE GROUPS

Table:3
AGE GROUPS
BRANDS 0-10 10-20 20-30 ABOVE 30

42
CADBURY 8 28 14 9
NESTLE 5 17 7 7
NO 2 0 2 1
CONSUMPTION

Chart:3

According to the above analysis it is concluded that people of different age

groups prefer mostly Cadbury brand of chocolate while Nestle brand is least
preferred by the age group between 10-20. People of age group above 30
equally likes to have both brands.

 BRAND PREFERENCE

Table:4
BRANDS
PREFERENCE BY CONSUMERS
CADBURY 73
NESTLE 22

43
 Brand Preference
80 73
70
No. of Persons

60
50 Cadbury
40
30 22 Nestle
20
10
0
1
Chocolate Brands

Chart:4

From the above analysis of given sample of 95 respondents who eat

chocolates it is concluded that only 22 people prefer to eat Nestle chocolates
while 73 people likes to eat Cadbury chocolates.

 PURCHASE OF CHOCOLATES
PURCHASE OF CADBURY CHOCOLATES

Table:5
CADBURY CHOCOLATES
SUB- BRANDS NUMBER OF RESPONDANTS
20
DAIRY MILK
5 STAR 15
PERK 12
44
CELEBRATIONS 16
TEMPTATIONS 10

Chart:5
From the above analysis of given sample of 73 respondents who eat Cadbury
chocolates it is concluded that mostly people has purchased Dairy Milk sub-
brand of Cadbury while Temptation is least purchased by the people.

 PURCHASE OF NESTLE CHOCOLATES

Table:6

NESTLE CHOCOLATES
SUB- BRANDS NUMBER OF RESPONDANTS
KIT KAT 8
MUNCH 6
MILKY BAR 3
BAR- ONE 5
MILK CHOCOLATE 1

45
 Chart:6
From the above analysis of given sample of 22 respondents who eat Nestle
chocolates it is concluded that mostly all sub-brands are purchased by people
but top most is Munch followed by Milky Bar and Kit Kat. While surveying
we have found that many people are not aware of Milk Chocolate.

 OVERALL PURCHASE OF CHOCOLATES

Table:7

OVERALL PURCHASE OF SUB- BRANDS OF CHOCOLATES

SUB-BRANDS PERCENTAGE OF PURCHASE
DAIRY MILK 19
5 STAR 14.25
PERK 11.4
CELEBRATIONS 15.2
TEMPTATIONS 9.5
KIT KAT 7.6
MUNCH 5.7
MILKY BAR 2.85

46
BAR ONE 4.75
MILK CHOCOLATE 0.95

Chart:7
From the above analysis it is concluded that overall Dairy Milk is purchased
by people followed by 5 Star while Temptation and Milk Chocolate is least
purchased by people
 FORM PREFERENCE

Table:8
FORM OF NUMBER OF
CHOCOLATE RESONDENTS
HARD 33
NUTTIES 25
CRUNCHY 17
CHEW 20

47
 Form of a Chocolate Prefered by
40 33 People
17

Number of Consumers
HARD
30 25
20 NUTTIES
20
CRUNCHY
10
CHEW
0
1Forms

Chart:8
According to the above analysis it is concluded that most of the people likes
to eat hard chocolate and chew form of a chocolate is least preferred.

 PACK OF CHOCOLATES PREFERED

Table:9
PACK SIZE NUMBER OF RESPONDENTS
SMALL 28
BIG 48
FAMILY PACK 19

48
 Pack of Chocolate Prefered
60
48
50

Number of Consumers
40 SMALL
28
30 BIG
19
20 FAMILY PACK
10
0
1Pack

Chart:9

According to the above analysis it is concluded that out of sample of 95

people who eat chocolates likes to buy big pack. Family pack is mostly
preferred by aged people only.

 PROMOTIONAL OFFERS

Table:10
PROMOTIONAL OFFERS NUMBER OF RESPONDENTS
FREE GIFTS 52
PRICE OFFER 23
ANY OTHER 20

49
 Effect of Promotional Offers
while Purchase

Number of Consumers
60 52
50
40 FREE GIFTS
30 23 PRICE OFFER
20
20 ANY OTHER
10
0
Promotional
1 Offers

Chart: 10
According to the above analysis it is concluded that out of sample of 95
people who eat chocolate 52 are attracted by free gifts, 23 by price offers
while 20 were attracted by some other reasons.

 FACTORS AFFECTING PURCHASE

Table:11
FACTORS NUMBER OF
RESPONDENTS
ADVERTISEMENT 40
SUGGESTION FROM FRIENDS AND 16
RELATIVES
ATTRACTIVE DISPLAY 11
BRAND AMBASSADORS 9

50
INGREDIENTS 19

Chart: 11
According to the above analysis it is concluded that Advertisement is the
best measure to attract customers to purchase more. Its impact is much more
than other factors. While friends and relatives and brand ambassadors also
play a significant role in this regard.
 MEDIA OF ADVERTISEMENT

Table:12
MEDIA OF ADVERTISEMENT NUMBER OF RESPONDENTS
TELEVISION 56
NEWSPAPERS 13
BROCHURES 5
HOARDING 10
DISPLAY 11

51
 Chart:12
According to the above analysis it is concluded that television emerges as
the best media for advertisement of chocolates that compel consumers to
buy. It is much more than other ways as out of 95 respondents most are
attracted to by through television media while brochures are the least
attracting media.

 FREQUENCY OF CONSUMPTION

Table:13
FREQUENCY OF NUMBER OF RESPONDENTS
CONSUMPTION
ONCE IN A FORTNIGHT 16
DAILY 17
WEEKLY 39
MONTHLY 18
QUARTERLY 5

52
 Frequency of Consumption
50
Number of Consumers
39
40 Once in a
fortnight
30
Daily
16 17 18
20
5 Weekly
10
0 Monthly
1 Frequency
Quarterly

Chart:13
According to the above analysis it is concluded that mostly people purchase
chocolates weekly. Only 5 out of 95 purchase chocolates quarterly.

 REASONABLE PRICE

Table:14
PRICE OF CHOCOLATE NUMBER OF RESPONDENTS
BELOW 5 6
5-10 23
10-20 51
20-30 4
ABOVE 30 11

53
 Reasonable Price
60 51 Below5
50
Number of Consumers 40
5 to 10
30 23 10 to 20
20 11
6 4 20 to 30
10
0 Above 30
1 Price

Chart: 14
According to the above analysis it is concluded that the consumer thinks 10-
20 Rs is the reasonable price of a chocolate. So it must be worthwhile to
know this as it may effect the sale of chocolates.

 CONSUMER’S BRAND LOYALTY

Table:15
BRAND LOYALTY ACTIONS NUMBER OF RESPONDENTS
POSTPONE YOUR PURCHASE 26
SWITCH OVER TO OTHER 24
BRANDS
GO TO OTHER SHOP FOR 45
SEARCH OF PREFERED
BRAND

54
 Brand Loyalty
Number of consumers 50 45
45 Postpone Purchase
40
35
30 26 24
25 Switch Brand
20
15
10 Search in other Shop
5
0
1
Action of Consumers in absence of Prefered Brand

Chart:15
According to the above analysis it is concluded that mostly people are loyal
to the brand as in the absence of availability of their preferred brand mostly
people like to search for it or they are ready to postpone their purchase.

 REACTION OF CONSUMERS IF NEW BRAND IS

INTRODUCED

Table:16
SHIFT TO NEW BRAND OF NUMBER OF RESPONDENTS
THE PREFERED PRODUCT
NO, NOT AT ALL 35
MAY CONSIDER 27
NO, SHALL NOT 4
CAN’T SAY 29

55
 Reaction of consumers if new brand is
introduced
40 35
Number of Consumers

35
29 No, Not at all
30 27
25 May Consider
20 Shall Not
15 Can't Say
10
4
5
0
1
Reactions

Chart:16
According to the above analysis it is concluded that mostly people are
addicted to the same flavor or taste and they don’t want to change it as out of
95 respondents 35 are not ready to try new brand at any cost.
REASONS FOR NOT SWITCHING OVER TO OTHER BRANDS

All the consumers why they continue to buy the old brand gave various
important reasons. The most important reasons given by the consumers
were:
 Taste/Flavor
 Brand
 Image
 Quality
 Packaging

56
Preference (or "taste") is a concept, used in the social sciences, particularly
economics. It assumes a real or imagined "choice" between alternatives
and the possibility of rank ordering of these alternatives, based on
happiness, satisfaction, gratification, enjoyment, utility they provide. More
generally, it can be seen as a source of motivation. In cognitive sciences,
individual preferences enable choice of objectives/goals.

CHAPTER-5

FINDINGS AND RECOMMENDATION

FINDINGS
1. From the above analysis of the given sample of 100 respondents it is
concluded that out of 100 people 95 people likes to eat chocolate
while only 5 people don’t prefer to eat chocolate.

2. According to the above analysis it is concluded that I have surveyed

100 respondents out of which 15, 45, 23, 17 belongs to age group 0-
10, 10-20, 20-30, above30 respectively.

57
3. According to the above analysis it is concluded that people of
different age groups prefer mostly Cadbury brand of chocolate while
Nestle brand is least preferred by the age group between 10-20.
People of age group above 30 equally likes to have both brands.

4. From the above analysis of given sample of 95 respondents who eat

chocolates it is concluded that only 22 people prefer to eat Nestle
chocolates while 73 people likes to eat Cadbury chocolates.

5. From the above analysis of given sample of 73 respondents who eat

Cadbury chocolates it is concluded that mostly people has purchased
Dairy Milk sub-brand of Cadbury while Temptation is least purchased
by the people.

6. From the above analysis of given sample of 22 respondents who eat

Nestle chocolates it is concluded that mostly all sub-brands are
purchased by people but top most is Munch followed by Milky Bar
and Kit Kat. While surveying we have found that many people are not
aware of Milk Chocolate.

7. From the above analysis it is concluded that overall Dairy Milk is

purchased by people followed by 5 Star while Temptation and Milk
Chocolate is least purchased by people

8. According to the above analysis it is concluded that most of the

people likes to eat hard chocolate and chew form of a chocolate is
least preferred.

58
9. According to the above analysis it is concluded that out of sample of
95 people who eat chocolates likes to buy big pack. Family pack is
mostly preferred by aged people only

10.According to the above analysis it is concluded that out of sample of

95 people who eat chocolate 52 are attracted by free gifts, 23 by price
offers while 20 were attracted by some other reasons.

11.According to the above analysis it is concluded that Advertisement is

the best measure to attract customers to purchase more. Its impact is
much more than other factors. While friends and relatives and brand
ambassadors also play a significant role in this regard

12.According to the above analysis it is concluded that television

emerges as the best media for advertisement of chocolates that compel
consumers to buy. It is much more than other ways as out of 95
respondents most are attracted to by through television media while
brochures are the least attracting media

13.According to the above analysis it is concluded that mostly people

purchase chocolates weekly. Only 5 out of 95 purchase chocolates
quarterly.

14.According to the above analysis it is concluded that the consumer

thinks 10-20 Rs is the reasonable price of a chocolate. So it must be
worthwhile to know this as it may effect the sale of chocolates

59
 15.According to the above analysis it is concluded that mostly people are
loyal to the brand as in the absence of availability of their preferred
brand mostly people like to search for it or they are ready to postpone
their purchase.

16.According to the above analysis it is concluded that mostly people are

addicted to the same flavor or taste and they don’t want to change it as
out of 95 respondents 35 are not ready to try new brand at any cost.

RECOMMENDATIONS

1. Company should concentrate more on television for advertisement, as

mostly people get attracted through television only.
2. For promotional offers, company should go for free gifts rather than
going for other ways.
3. Nestle company should concentrate on its packing as people are least
satisfied with it while Cadbury should concentrate on the shape of a
chocolate.
4. People are unsatisfied with the price and quantity of chocolate so
companies should concentrate in this regard also.

CONSUMER PREFERENCE

All marketing starts with the consumer. So consumer is a very important

person to a marketer. Consumer decides what to purchase, for whom to
60
purchase, why to purchase, from where to purchase, and how much to
purchase. In order to become a successful marketer, he must know the
liking or disliking of the customers. He must also know the time and the
quantity of goods and services, a consumer may purchase, so that he may
store the goods or provide the services according to the likings of the
consumers. Gone are the days when the concept of market was let the
buyer’s beware or when the market was mainly the seller’s market. Now
the whole concept of consumer’s sovereignty prevails. The manufacturers
produce and the sellers sell whatever the consumer likes. In this sense,
“consumer is the supreme in the market”.

The study of the consumer preference not only focuses on how and why
consumers make buying decision, but also focuses on how and why
consumers make choice of the goods they buy and their evaluation of these
goods after use. So for success of any company or product promotion it is
very necessary to depart its concentration towards consumer preference.
Change in preference or demand in the consumer buying goods effect the
employment of workers and deployment of resources and success of some
industries and failures of others. Thus marketer must understand this.

61
 CHAPTER – 6

CONCLUSION

A survey of the people has been conducted to know the liking pattern of the
two products Cadbury and Nestle. It is observed that overall people like to
eat Cadbury brand rather than Nestle. It is concluded that mostly people
preferred Dairy Milk of Cadbury due to its flavor/taste, quality and image
and due to its hard form. Some people often like to have a chocolate with
good flavor, quality and crunchiness so they are going towards Kit Kat and
Munch of Nestle due to its taste and crunchiness.

It is thus concluded from the facts collected that mostly people refer to buy
big pack of their favorite chocolate, and sometimes some of them go for
small and family pack.

62
The new era has witnessed remarkable advancement in the availability of
information a number of large companies operates on the principle of
“Survival of The Fittest” .these two companies Cadbury & Nestle have to
improve a lot by providing new range of chocolates< attractive packaging
and better promotional offers during festive season to withstand
international companies As consumers, we play a very vital role in the
health of the economy local, national or international. The decision we
make concerning our consumption behavior affect the demand for the
basic raw materials, for the transportation

CHAPTER – 7

BIBLIOGRAHY

 http://www.cadburyindia.com
 http://www.nestle.com
 http://www.aphrodite-chocolates.co.uk/history_chocolate.htm
 http://www.scribd.com
 http://www.google.com
 http://www.chocolatereview.co.uk
 http://en.wikipedia.org/wiki/preference
 Read
more: http://www.digitaljournal.com/pr/3542078#ixzz5jBvJC3ud

63
 ANNEXURE

PROJECT REPORT ON CONSUMER PREFERENCETOWARDS

NESTLE AND CADBURY CHOCOLATES

Que1. Do you eat chocolate?

A) YES

B) NO

Ques2. Age:

A) Between 0-10

B) Between10-20

C) Between 20-30

64
D) Above 30

Ques3 PREFERENCE ACCORDING TO AGE GROUPS?

A) Cadbury

B) Nestle

C) No Consumption

Que4. Which brand of chocolate do you prefer?

A) Cadbury

B) Nestle

Ques5. Preference towards Cadbury Chocolates?

A) Dairy Milk

B)5Star

C) Perk

D) Celebrations

E) Temptation

65
Ques6. Preference towards Nestle Chocolates?

A) Kit Kat

B) Munch

C) Milky Bar

D) Bar-One

E) Milk Chocolate

Que7. Overall purchased of Cadbury & Nestle Chocolates ?

Cadbury Nestle

Dairy Milk Kit Kat

5Star Munch

Perk Milky Bar

Celebrations Bar-One
Temptation Milk Chocolate

Que8. Which form of a chocolate do you like?

A) Hard
66
B) Nutties

C) Crunchy

D) Chew

Que8. What pack do you purchase?

A) Small B) Big C) Family Pack

Que9. Which promotional offers attract you most?

A) Free gifts

B) Price Offer

C) Any other

Que10.Which of these factors affect your purchase?

A) Advertisement

B) Suggestion from friends and relatives

C) Attractive Display

D) Doctors Advice

E) Brand Ambassadors

67
F) Ingredients

Que11. Which media of advertisement influence your purchase?

A) Television

B) Newspapers

C) Brochures

D) Hoarding

E) Display

Que12. How frequently do you purchase chocolates?

A) Once in a fortnight

B) Daily

C) Weekly

D) Monthly

E) Quarterly

Que13. What according to you is the reasonable price of chocolate?

A) Below5

B) 5-10

C) 10-20

68
D) 20-30

E) Above 30

Que14. If your preferred brand is not available for repeat purchase

then what will you do?

A) Postpone your purchase

B) Switch over to other brand

C) Go to the other shop to search for your preferred brand

Que15. If another brand of the same product appears in the market,

will you prefer to stop buying this brand and buy the new brand?

A) No, not at all

B) I may consider

C) No, I shall not

D) Can’t say

69