A PROJECT REPORT

On

“A COMPARATIVE STUDY OF CONSUMER

BEHAVIOUR TOWARDS NESTLE AND
CADBURY CHOCOLATE”

Submitted towards Partial Fulfillment of

BACHELOR OF BUSINESS ADMINISTRATION
(AFFILIATED TO C.C.S. UNIVERSITY, MEERUT)

(2020-2023)
Under the Guidance of: Submitted by:
MS. NEHA JAIN AKSHI
Assistant Professor BBA-V SEM
BBA, Department ROLL NO.200986105017

DEWAN INSTITUTE OF MANAGEMENT STUDIES MEERUT

[AFFILIATED TO CCS UNIVERSITY, MEERUT]

1
 DECLARATION

This is to certify that I have completed the Summer Internship Project title “A

COMPARATIVE STUDY OF CONSUMER BEHAVIER TOWARDS

CHOCOLATE”under the guidance of “Mr. AMARJEET CHAUHAN, Asst. Professor of

Management Department VICT, Meerut” in partial fulfillment of the requirement for the

award of Degree of Bachelor of Business Administration at Vidya Institute of Creative

Teaching, Meerut. This is an original piece of work & I have not submitted it earlier

elsewhere.

AKSHI

BBA-V SEM

ROLL NO.200986105017

iii

2
 ACKNOWLEDGEMENT

While conducting this report, I got support in many ways from many people. First, I am

deeply grateful to my project guide, Faculty Mentor Ms. NEHA JAIN Asst. Professor BBA

DEPARTMENT who helped me with full devotion and always supported me earnestly whenever

it was needed. Without his guidance, mental & moral support and academic inputs this report

was not possible.

This Training report could never haveseen the light of the day without his co-operation of

those Clients who participated in this. I am thankful to all of them for giving me their

valuable time.

I am also thankful to Project Coordinator Faculty Mentor MS NEHA JAIN Asst. Professor

of Management Department , for overall guidance and help.

My friends have been biggest support for me at every juncture of life. They manifested their

great interest in my research work also and always tried to make things easy for me.

A word of gratitude goes to my family members whose love; affection and understanding

have enabled me to complete this endeavor with ease.

At the end, I thank to Almighty for giving me courage and strength to conduct this project

report.

Under The Guidance of : Submitted by:

MS.NEHA JAIN AKSHI
Assistant Professor BBA-V SEM
BBA, Department ROLL NO.200986105017

iv

3
EXECUTIVESUMMARY
‘’ CONSUMER Behavior is the action and decision processes of people who purchase
goods and service for personal consumption All decisionsinmodern
businessorganizationrevolvearoundinformationrelatedwithmarketing decisionmaking
situations, which are characterized by Distribution Strategy, Channel members and
Productdecisions.TheProductDecisions,customersassessaproduct’svaluebylooking
atmanyfactors includingthose thatsurround theproduct.
Inaconstantly changingbusinessandmarketscenario,maintainingthechannel
members becomesmorechallenging insuchasituationonlyinnovative technology,good
product and committed people, accompanycan taketheleadover itscompetitors.

Valuefortheproductandservicesreferstothequality ofproductandservices offered to

the customers. Several surrounding features can be directly influenced by channelmembers,
such as customer service, delivery, and availability. Consequently, a
channelpartnerinvolvesavalueanalysisinthesameway customersmakepurchase
decisions.Thisareabecomesthemostimportantfromthecompany aswellascustomer
pointofview.Thishelpsthecompanytoknowbettertheircustomersandprovidethem
withwhattheyare expecting.

It is not possible for a market to have similar strategies for product

promotionamongstallindividuals.Kidsdonotgetattractedmeantforadultsandvice versa.Every
segmenthasadifferentneed,perceptionandinterest.Notwosegmentscan
havethesimilaridiociesor requireproducts.

Market

A market is defined as the sum total of all the buyers and sellers in the area or region
under consideration. The area may be the earth, or countries, regions, states, or cities.

4
 Marketing

MarketingisdefinedbytheAmericanMarketingAssociationas"theactivity,set of
institutions, and processesfor creating, communicating, delivering, and exchanging
offeringsthat have value for customers, clients, partners, and society at large."The
termdevelopedfromtheoriginalmeaningwhichreferredliterally togoingtoamarketto
buyorsellgoodsorservices.Seenfromasystemspointofview,salesprocessengineering
viewsmarketingas"aset of processes that are interconnected and interdependent with other
functions,whosemethodscanbeimprovedusingavariety ofrelativelynew approaches."

Marketingmanagement

Marketing management istheorganizationaldisciplinewhichfocusesonthe practical

application of marketing orientation, techniques and methods inside enterprises
andorganizationsandonthemanagementofafirm'smarketing resourcesand activities.

Marketingstrategy

Marketing strategy that measures how products or services supplied by a companymeet

acustomer'sexpectation. Marketing strategyis important because it provides
marketersandbusiness owners with ametric that theycan usetomanageand
improvetheir businesses.

INDEX

TABLE OF CONTENTS PAGE NO

PROJECT NAME i

CERTIFICATE FROM THE GUIDE ii

DECLARATION iii

ACKNOWLEDEMENT iv

EXECUTIVE SUMMARY v

TABLE OF
CONTENTS
CHAPTER PAGE
NUMBER CHAPTER NAME CONTENTS NUMBER
5
 1 INTRODUCTION   2
  AND CAMPANY PROFILE HISTORY OF CHOCOLATE 4-9
       
    CHOCOLATE PRODUCTION 9-12
       
CONSUMPTION OF CHOCOLATE IN
    INDIA 12-13
    NESTLE'S PROFILE 14-17
    CUDBURY PROFILE 17-47
    SCOPE OF THE STUDY 48
    OBJECTIVES OF THE STUDY 49
       
2 RESEARCH METHODOLOGY BASIS OF RESEARCH AND DESIGN 50-57
3 DATA ANALYSIS OF THE STUDY ANALYSIS OF DATA 59-75
    FINDING 76
4 SUGGESTIONS AND RECOMENDEATION LIMITATIONS OF THE STUDY 77-79
       
5 CONCLUSION   81
  BIBLIOGRAPHY   82-83
  OUESTIONNAIRE   84-85

  LIST OF TABLES AND GRAPH  

TABLE
NUMBER TITLE PAGE NUMBER

1 LIKING OF THE CHOCOLATES 59

2 DIFFERENT AGE GROUP 60

3 PREFERENCE ACCORDING TO AGE GROUP 61

4 BRAND PREFERENCE 62

5 PURCHASE OF CUDBURY CHOCOLATES 63

6
6 PURCHASE OF NESTLE CHOCOLATES 64

7 OVERALL PURCHASE OF CHOCOLATES 65

8 INFLUENCING FACTORS DURING PURCHASE 66-70

9 FACTORS GIVING MOST SATISFACTION TO CONSUMERS 71-75

7
Chapter -1
8
INTRODUCTION

9
 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 “Meerut”. 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.

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 COMPANY PROFILE

Chocolate

The very word makes your mouth water.

Chocolate is more than just a food: it’s a state of mind.

Chocolates

Chocolates! Chocolates!

Every body 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,

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‘Cause we can have it

Anytime, any season!

History of chocolate:

The origin of chocolate can be traced back to the ancient Maya and Aztec civilizations in

Central America, who first enjoyed “chocolate” 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 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 chill

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 16th 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.

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Chocolate across Europe

An Italian traveler, Francesco carletti, was the first to break the Spanish monopoly. He had

visited Central America and seen how the Indians prepared the cocoa beans and how they

made the drink, and by 1606 chocolate was well established in Italy.

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

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.

History:

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 “ theobroma 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

13
use in ceremonies as well as for drinking by the wealthy and religious elite; they also ate

cacao 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 “chocolate” 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”

Chocolate in Europe

Xocolatl! or chocolate 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 its weight in silver

(if not gold), chocolate was treasure indeed!

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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, and 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.

Back to the America’s

Events 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.

The Quakers

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.

It’s 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

15
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.

Chocolate as we know it

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.

16
17
CHOCOLATE PRODUCTION

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 Equador 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.

TheHarvest

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.

18
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.

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 fibers, 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.

Crushingandshelling

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

19
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 with a characteristic, strong odour. 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 luster 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

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:
20
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 pulverize the tiny particles of cocoa

and sugar down to a size of approx. 30 microns. (One micron is a thousandth part of a

millimeter.)

Conching

But still the chocolate paste is not smooths 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.

CONSUMPTION OF CHOCOLATES IN INDIA

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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.

NESTLE’

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

22
Choladi (Tamil Nadu) as a pilot plant to process the 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 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.
23
Nestle’ Brands

 Milk Products & Nutrition

 Beverages

 Prepared Dishes and Cooking Aids

 Chocolates & Confectionary

MILK PRODUCTS AND NUTRITION:

NESTLÉ EVERYDAY Dairy Whitener
NESTLÉ EVERYDAY Slim
NESTLÉ EVERYDAY Ghee
NESTLÉ MILKMAID
NESTLÉ Fresh 'n' Natural Dahi
NESTLÉ Fresh 'n' Natural Slim Dahi
NESTLÉ Jeera Raita
NESTLÉ MILKMAID Fruit yoghurt
NESTLÉ Milk
NESTLÉ Slim Milk

BEVERAGES:
NESCAFÉ CLASSIC
NESCAFÉ SUNRISE
NESTLÉ MILO
NESCAFÉ 3 in 1
NESCAFÉ Koolerz

PREPARED DISHES AND COOKING AIDS

MAGGI 2-MINUTE Noodles

MAGGI Vegetable Atta Noodles

MAGGI Dal Atta Noodles

MAGGI Rice Noodles Mania

MAGGI Sauces

24
 MAGGI Pizza Mazza

MAGGI Healthy Soups

MAGGI Healthy Soup- Sanjeevni

MAGGI MAGIC Cubes

CHOCOLATES & CONFECTIONARY

NESTLÉ KIT KAT

NESTLÉ KIT KAT LITE

NESTLÉ MUNCH

NESTLÉ MUNCH POP CHOC

NESTLÉ MILKYBAR

NESTLÉ MILKYBAR CHOO

NESTLÉ BAR-ONE

NESTLÉ FUNBAR

NESTLÉ Milk Chocolate

POLO

POLO Power mint

NESTLÉ Éclairs

NESTLEKITKAT

  are crisp wafer fingers covered with Chocó layer. NESTLÉ KIT KAT has a unique finger format with a ‘breaking'

ritual attached to it.

    NESTLÉ 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.

25
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 Chocó layer. NESTLÉ BAR-ONE constantly

reminds you that it is ‘Time for Action'.

NESTLE Milk Chocolate:

CADBURY

How Cadbury Chocolate is made

26
 John Cadbury

Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder John

paste to the dark chocolate recipe of cocoa mass, cocoa butter and sugar. By today's standards

this chocolate was not particularly good: it was coarse and dry and not sweet or milky enough

for public tastes.

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.

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.

27
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.

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,

marketin termsofvolume.Topushsaleschocolatecompanieshavebeentargeting mainly

adultaudiences.Chocolatesarebeingpresentedas snackfoodforthenewtargetaudiences.
Thechocolatesegment ischaracterizedby highvolumes,hugeexpensesonadvertising,low
margins, and pricesensitivity.

Cadburyis the leading player in the chocolate market industrywith the penetration of
70%marketshare.ThecompanysbrandslikeFiveStar,Gems,Éclairs,Perk,andDairy Milk are
leadersin theirsegments.Nestle&Amulare theother majorplayersinchocolate
industry.Chocolateindustryis growingatsteadygrowthrateof25%.Over70%ofthe
consumption ofchocolatestakesplace intheurban market. It ispricesensitive market.

Untilearly 90s,Cadbury hadamarketshareofover80%,butitsparty wasspoiledwhen

Nestleappearedonthescene.Theother onehasintroduceditsinternationalbrandsinthe country
(KitKat,Lions),andnowcommandsapproximately 15%marketshare.Thetwo
companiesoperatinginthesegmentareGujaratCo-operativeMilkMarketing Federation
(GCMMF)andCentralArecanutandCocoaManufactures andProcessors Co-operation
(CAMPCO).Competitioninthesegmentwillsoongetkeenerasoverseas chocolategiants
Hersheysand Marsconsolidate tograb abiteof theIndianchocolatepie.

IndianChocolateIndustry’sMarginrangebetween10and20%,depending onthepricepoint
atwhichtheproductisplaced.TheinputcostsinIndiaareundercheckowing tothe24% declinein
thepricesof sugar.

CoreCompetenci
es
The core competenciesonwhichour company will competeare:
28
Taste
Byconsumingthe―YummyChocolates‖flavor beginsto fillyour mouth the
momentthe chocolatebeginsto melton your tongue likebutter and ittasteslikepure
chocolateratherthan cocoapowder. Atfirst there is so much pleasure in tastingthe
chocolate, it maybedifficult to focuson thespecificsof flavor.Firstperception the
consumer would describefor the chocolate as―chocolaty‖ and ―Yummy‖.
Quality
Therawingredientsareof finestqualityand also careistaken of theproduction
process;roastingand crushingthe cocoabeansand mixingthe cocoapastewith sugar
and other ingredients such asmilk. Yummychocolatesarehigh qualitychocolatesas

theyareshinybrown, breakscleanlyand is smooth. Yummychocolateshasthe

sufficientquantitiesofcocoabutterand vegetablefatso thatitdoesnotbecome
greasyor stickyat ambientroomtemperature.

29
 Ownership
Our companywillbeapartnership firm.

CompetitorAnalys
is

COMPANYFOUNDEDINBRANDPORTFOLIO(confectioneryproducts)Nestle1860s
KitKat,Smarties,WonkaFerrero1940sRocher,Raffaello, Kinder,TicTac, MonCheri,
NutellaMars1911Bounty,Galaxy,Mars,Snickers,MilkyWay,Wrigley’s,M&M’setc
Amul1945Milkchocolate,Fruit&NutchocolateHershey’s 1894Hershey’smilkchocolate,
Kisses,Potofgold,Milkduds,Reese’s,IcebreakersetcPerfetti2001,when Perfetti Alpenliebe,
Van Melle and Van melleChlormint, merged Centerfresh, Happydent, Mentos
ITC2002(confectionery Mintoandsegment)CandymanParle1929Melody,mangobite,
poppins,kismitoffee,mazelo,xhale,éclair,golgappa,parlelites,orangecandyCadbury1948
(Indian Market) DairyMilk, DairyMilk fruit N nut, DairyShots, DairyMilk Roasted
Almond, DairyMilk Silk

Market
Segmentation

Whilewe anticipate a split betweenlocalsandtourists, all members of our target

marketarebetweentheagesof25and 60,andhaveamoderatetosizabledisposable income.

Our

30
Products

Our company willbedealing inthemanufacturing of 3products.

Theyare:

1. Milk
Chocolate

2.Fruit&NutChocolate

3. Plain
Chocolate

Ingredientsof
MilkChocolate

Sugar,FullCreamMilkPowder,VegetableFat,Emulsifiers,Flavors,WholeCow’sMilk,
CocoaButte
r.

Recipeformilkchocolate

Takeonecup of powdered sugar, one cupof milk powder.

Oneheaped tablespoon of cocoapowder,abouthalftablespoon of butter, and tothis add
theminimumquantityof water required to makea thick batter.
Place thisbatter on astove and bringto aboilon a lowflame.
31
 When thebatter becomesthick (shown inthe clip) stop theboiling, cool.
Pour into suitable moulds, cut, coolin afridge and itgetsready.

Ingredientsof Fruit &Nut

Sugar,FullCreamMilk Powder, Raisins,CocoaButter, CocoaMass,Almonds, Vegetable

Fat,Emulsifiers,Flavors.

Recipeforfruit &nut chocolate

First takewhatever mouldsyou like and grease itwith butter. Set thisasidefora
moment.
32
 Melt thechocolate either in doubleboilermethod or ina microwave. Remove itand
set aside.
Chop up allyour nutsand dried fruits. Add it to the chocolate andmix well.
Takeaspoonfulofthisand fillyour prepared mouldand putit in thedeep freezefor
1 hour.
Unmould it and keep it in thefridgeuntilserving.

IngredientsofPlain Chocolate
Sugar,FullCreamMilk Powder, CocoaButter, CocoaMass, VegetableFat,
Emulsifiers,Flavors.

Recipeforplainchocolate

33
 Combine cocoa and sugar and blend untilall lumpsof cocoaaregone. Add water and
salt and mix well.
Cook over mediumheat, bringingit to aboil.
Keep boilinguntil thick, stirringto keep fromoverflowing.

Then put thisin your milk, just like thestoreboughtstuff.

Marketing Plan

Economics

Totalsizeof chocolatemarket is33000 tonnes

Trendsin Consumer Preferences

Therange and varietyof chocolatesavailable in malls seemsto begrowingdayby day,

which leadsto lotofimpulsesalesfor chocolatescompanies.
Chocolates which use to beunaffordableisnowconsidered mid-priced. Branded
chocolateshavebecome morepopular.
Mithai isbecomingthesubstituteof chocolates
Instead of buyingsweetson Rakhshabhandan, Diwali, peopleprefer to buy
chocolates.

Barrierstoentry

Hugestartup costs

thewellestablished brands
To keep priceoftheproduct low, asitisapricesensitive market

Overcoming theBarrierstoentry
34
 To overcomethebarrier of hugestartup costsour machinerywould be taken for
leasefor firstfewyearsof business.
Marketingof our products would beon thebasisgood qualityand healthyproducts to
providea competitive advantage.

Product

From customer’spointof view, chocolateistheproductwhich showstheir impulse

buyingbehavior. Customersare lookingfor lowpriced chocolatesandalso itshouldhave
good taste.

Featuresandbenefits

Milk chocolate

Milk chocolateisastimulator,to thebrain, to theemotions, thus, increasesyour

stamina.
Milk chocolateishigh in vitaminsB1,B2,Dand E. It also containspotassium and
magnesium.
Milk chocolatecontainsantioxidantsthatboost the immunesystem.

Fruit N Nut chocolate

Almondshelp in the creation of newblood cells, hemoglobin and helpin proper

functioningof vitalorgansof thebody.
Almondsalso help in weight loss, loweringblood pressure, reduction in risk of
recurrentcoronaryheartdisease, solvingconstipation,etc.
Raisin helpsin digestion problems, acidityor constipation problems.

to body.
Cashewshaveno cholesterol. Cashewscontain healthymonounsaturated fat that
promotes good cardiovascular health

Plainchocolate

Magnesiu

m.

35
hypertensi

on.

Competitors

Niche

Our niche marketwould be thechildren andyoung generation aschocolate ismostlyliked

bychildren and youngsters.

Marketing strategyfornichemarket

qualityand healthychocolatesare thefactorson which marketingwillbedone.

Promotion

Through pagesand accounton SocialNetworkingSites(Facebook & Twitter)

Distributionchannels

Our products would bedistributed through channelslikewholesalers, retailersandour own

salesforce.

PROPOSED LOCATION
For our business, theproposed location would be in
GIDC,Gandhidham.

Operational
Plan

Producti

36
on

Theproductwillbe manufacturedby FullAutomaticChocolateProductionLine(QH200),

withthis system,baking themoulds,depositing,forming etc.seriesprocedurecanbe
achievedautomatically.Itsavailable to depositingallshapeof chocolate.

Suchas doublecolorfilled-inside,nuts etcchocolate.Sinceourproductareplainas wellas nut are

added thismachine isappropriate

.This machinecanproduce100-300kgchocolates perhour.Itcanproducechocolates in

differentshapes.Itcanhelptoreducecostofchocolatesmould.By ProducingChocolatesin
differentshapeswecanattract allsegmentsofmarket.Theproductioncapacity isfully
automatedasmentionedabove,sotheneedofpersonneliscomparativelessthanothersemi-
automaticmachine.

Manufacturingproce
ss

Chocolateproduction ishighly sophisticatedcomputercontrolledprocesswithmuchofthe

newspecialistmachinery.Machineslike aschocolatecoolingtunnels,enrobingmachines,
coatingmachines, mouldingmachines.

Chocolateprocessing:

Production flowof

chocolate

Cleani
ng

Whenseedsarrivetofactory they arecarefully selectedandcleanedby passingthrougha

beancleaning machine that removes extraneous materials. Different bean varieties are
blended toproduce the typicalflavor of chocolateof particular producer. Then thebean shells
are crackedand removed. Crushed cocoabeansarecalled nibs.

Roasti
ng

37
Thebeans arethenroastedtodevelopthecharacteristicchocolateflavorofthebeanin largerotary
cylinders. The roasting lasts from 30 minutes to 2 hours at very high
temperatures.Thebeancolourchanges toarichbrownandthearomaofchocolatecomes through

.Grindi
ng

Theroastednibs aremilledthroughaprocessthatliquefies thecocoabutterinthenibsand

formscocoamass (or paste).This liquidmass has darkbrowncolour,typicalstrongsmelland
flavorand containsabout54% of cocoabutter.

CocoaPressin
g

Partofcocoamassisfedintothecocoapresswhichhydraulically squeezesaportionof
thecocoabutterfromthecocoa mass,leaving"cocoacakes".Thecocoabutter isusedinthem
anufactureofchocolates;theremaining cakesofcocoasolidsarepulverizedinto cocoapowders.

Mixingand
Refining

Ingredients,like cocoa mass,sugar,cocoabutter, flavoringsandpowderedor condensedmilk

formilkchocolateareblendedinmixerstoapastewiththeconsistency ofdoughfor
refining.Chocolaterefiners,asetofrollers,crushthepasteintoflakes thataresignificantly reduced
insize.This step iscriticalin determininghow smooth chocolate is wheneaten.

Conching isaflavourdevelopmentprocessduring whichthechocolateisputunder

constantagitation.Theconching machines,called"conches",havelargepaddlesthatsweep
backandforththroughtherefined chocolatemassanywherefromafewhoursto severaldays.
Conchingreducesmoisture,drivesoffanylingeringacidicflavorsandcoatseachparticleof

chocolatewithalayerofcocoabutter. Theresulting chocolatehasasmoother, mellower flavor.

Temperingand
Moulding

The chocolate then undergoesa tempering melting and cooling processthat createssmall,
stablecocoa butter crystalsin the fluid chocolate massand isdeposited intomouldsof

38
different forms.Properlytempered chocolate will result in a finished product that hasa
glossy,smoothappearance.

Themouldedchocolateenterscontrolled cooling tunnelstosolidifythepieces.Depending on

thesizeofthechocolatepieces,thecoolingcycletakesbetween20minutestotwohours.
Fromthecoolingtunnels,thechocolateispackagedfordeliverytoretailersandultimately into
thehandsof consumers.

Ourmanufacturing unitwillbelocatedin Adipur.KandlaPortandMundraPortarealsonear

toAdipursoitalsohelps infuture,ifwewantChocolates tobeexported.Labouriseasily
availablesincetherearemany suchlabourcontractoravailableinGandhidham.Wewillget
skilledandunskilledlabourasperourneed.Technicalpeoplearealsoavailableeasilyto
monitor thequalityand consistencyof ourproducet

39
Mumbai, Kolkota and Chennai). The corporate office is 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" 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

40
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 KeralaAgricultureUniversity 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.

CADBURY WORLD WIDE

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

regional presence in beverages in the Americas and Australia.

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,

00people.

Their heritage starts back in 1783 when Jacob Schweppes 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.

41
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, 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

Cadbury Brands:

 Chocolates

 Snacks

 Beverages

 Candy

SNACKS:

Bytes

BEVERAGES

Bourn vita

CANDY

Halls

42
CHOCOLATES

Dairy Milk

5 Star

Perk

Celebrations

Temptation

Éclairs

Gems

DAIRY MILK

The story of Cadbury Dairy Milk

started way back in 1905 at Bourneville, 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 in1, a delightful

43
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

 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 co

lour. 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

44
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

 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.

45
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 flavors’ and the premium dark

chocolate range which is exotic dark chocolate in luscious flavors’.

TEMPTATION

Cadbury Temptations is a range of delicious premium chocolate in five

flavors’ variants - Roast Almond Coffee, Honey Apricot, Mint Crunch, Black Forest

and Old Jamaica.

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 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

46
sellers sell whatever the consumer likes. In this sense, “consumer is the supreme in the

market”.

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, for the banking, for the production; they

effect the employment of workers and deployment of resources and success of some

industries and failures of others. Thus marketer must understand this.

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.

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.

47
 MAJOR PLAYERS IN THE CHOCOLATE MARKET OF
INDIA
As we know that the chocolate market in India is estimated to be around 30800 tones. The

market is presently having around 80 million consumers and they are mainly located in the

urban areas. The market is dominated by two major players namely: Nestle India Ltd &

Cadbury India Ltd which together account for 95% of the total chocolate market. The rest 5%

is held by other players (including Amul and unorganized brands). Market growth in the

chocolate segment has hovered between 10 to 20%. The average growth rate of the chocolate

market in the coming years will be around 14-15% that shows a tremendous potential for

future growth.

It is depicted from the pie chart given below that the major competitor of Nestle in case of

chocolates is Cadbury with a market share of 53% as compared to that of Nestle, which is

42%.

5%
42%

53%

Nestle Cadbury Others

[Market Shares are for the year 2006]

Here on, I will present the marketing mix used by Cadbury along with its strengths and

weaknesses and also which brands of Nestle are competing with Cadbury brands.

CADBURY
48
Opening its doors in 1824 at Bull Street, Birmingham, Cadbury’s history is a fascinating

study of industrial and social development, showing how a small family business developed

into an international giant. Defining the taste of chocolate, Cadbury began its Indian

operations as a trading concern in 1947. With brands like Dairy Milk, Gems, 5 Star and Perk

and now additionally with products like Celebrations, Bytes and Temptations, Cadbury has, in

the last five decades, become one with the word ‘chocolate’ in India. Cadbury Dairy Milk is

Cadbury India’s biggest brand and is synonymous with chocolates in India.

MAJOR CHOCOLATE BRANDS OF CADBURY

 Cadbury Dairy Milk (CDM)- It was first introduced in the year 1900 and from there

onwards it made a quick impact becoming the market leader. For kids across India,

CDM is synonymous with the word chocolate. It is the largest chocolate brand in India

contributing around 25% to Cadbury India’s total revenues. It is a classic example of a

brand coming to symbolize a product

Category. Cadbury has been the preferred

gift for children as well as for adults too.

Cadbury Dairy Milk is available in the following flavours:

 Caramelo

 Fruit and Nut

 Roast Almond

 Crackle

49
 Perk- Another good chocolate in the kitty of Cadbury India Ltd is

Perk, a wafer snack that was launched by Cadbury in the year 1995.

 5 Star- 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.

 Temptations- The Cadbury Temptations range is available in 5

delicious flavour variants - Roast Almond Coffee, Honey Apricot,

Mint Crunch, Black Forest and Old Jamaica. With its international

quality chocolate Temptations soon became a popular brand for

"chocoholics".

 Bournville- Cadbury India Ltd. has announced the launch of Bournville Fine
Dark Chocolate, the first dark chocolate product from the much-loved Cadbury

India basket.

50
In the year 2002, market share of Nestle was just 25% as compared to that of Cadbury, which

was 70%. In order to counteract this competition from Cadbury, Nestle introduced Munch, an

enrobed waferchocolate in the year 2002 and in the shortest span of one and a half year i.e. in

the year 2001, Nestle was able to grab the market of Perk and Nestlé’s market share rose to

30% in comparison to 65% of Cadbury.Cadbury got another major setback in the year 2003

after the launch of Milkybar Starz and Milkybar Choo, the largest brand in the India’s white

chocolate market and this took Nestlé’s market share to 37% in the year 2004 as against 58%

of Cadbury.

And finally in the year 2005, through a powerful consumer insight, Nestle found that

affordability and value for money are the key drivers of for growth and therefore introduced

small packs of chocolates at an affordable price such as Chotu munch, Milky bar choo

strawberry at Rs2 and also brought down the prices of Kitkat from Rs 12 to Rs10, which a

common man can easily afford and this rose the volumes of Nestle chocolates and today

Nestle is having a market share of 42% as against 53% of Cadbury.

This is how through its product innovations and an affordable pricing strategy along with

attractive packaging and promotions, Nestle has been able to double its market share in just 5

years from 2001 to 2006 and is giving tough competition to Cadbury in its all varieties of

chocolates.

Consumer goods giant Hindustan Lever has just announced a foray into the business with the

launch of Max candy. An entry into this segment is also part of the diversification plans of

cigarette major, ITC. Both hope to use the confectionery foray to pep up flagging growth rates

in their core businesses, thus putting their sizeable cash flows to better use.

High on potential On the face of it, the vital statistics of the confectionery segment seem more

promising than the conventional FMCG categories such as toilet soaps or detergents. While

51
toilet soaps and detergents already reach over 90 per cent of the households, both chocolate

and sugar confectioneries have abysmally low penetration levels.

ORG-MARG estimates suggest that chocolates penetrated just five per cent of the Indian

households in 2000. On the other hand, sugar-boiled confectionery reaches 15 per cent of the

households, leaving ample room for growth. Even considering the urban market alone, the

category reaches just 22 per cent of the urban consumers. This category, therefore, has

considerable potential to grow before it reaches saturation point -- as have traditional FMCG

products such as soaps and detergents. Chocolates and sugar-boiled confectionery boast of

even lower penetration levels than biscuits, which reach 56 per cent of the households.

The Indian confectionery market is segmented into sugar-boiled confectionery, chocolates,

mints and chewing gums. Sugar-boiled confectionery, consisting of hard boiled candy, toffees

and other sugar-based candies, is the largest of the segments and valued at around Rs 2,000

crore. The organised segment is dominated by Nutrine Confectionery and Parry

Confectionery, apart from the Indian arms of MNCs such as Perfetti India and Warner

Lambert.

52
Cadbury India and Nestle India also made a foray into this segment five years ago and have a

small presence. Chocolates make up a 22,500-tonne market

53
CHOCOLATES AND CONFECTIONARIES
1. Nestle KITKAT

They are crisp wafer fingers covered with chocolayer. NESTLÉ KIT KAT

has a unique finger format with a ‘breaking' ritual attached to it. NESTLÉ

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.

2.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!

3.Nestle Milkybar

NESTLÉ MILKYBAR is a delicious milky treat that kids love. Re-launched

in January 2006 with a Calcium Rich recipe, NESTLÉ MILKYBAR is a favorite with parents

to treat their kids with.

4. Nestle Milk Chocolate

NESTLÉ Milk Chocolate is a milk chocolate with a delicious taste. Kids

just love it!

5. Nestle Bar-One

It is a luscious nougat and caramel with delicious choco-layer.

NESTLÉBAR-ONE constantly reminds you that it is ‘Time for

Action'.
54
6.Nestle Éclairs

NESTLÉ Éclairs are rich milky caramel Éclairs that have a soft center.

NESTLÉ Éclairs are enjoyed by billions of consumers every year.

NESTLÉ Chocolate Éclairs are a delicious delight with luscious creamy chocolate inside. It

offers a chocolate eating experience at a candy price point!

NESTLÉ MILKYBAR Éclairs are a delightful Éclairs with a creamy milky

chocolate center - Big bite, white inside!

NESTLÉ Coconut Éclairs are Éclairs with a coconut flavor inside a luscious caramel shell!

7. POLO

POLO is popularly described as a ‘Refresh mint’. It is unique in the

category – ‘The Mint with the hole'.

Here are the prices of Nestlé’s various chocolate brands:

55
 NAME SIZE PRICE

BAR ONE 25g Rs 5

BAR ONE 40 g Rs 10

CHOTU MUNCH 5g Rs 2

MUNCH 36g Rs 5

KIT KAT 17.5g Rs 5

KIT KAT 36g Rs 10

NESTLE MILK 13.5g Rs 5

CHOCOLATE

NESTLE MILK 27g Rs 10

CHOCOLATE

MILKY BAR CHOO 20g Rs 5

MILKY BAR STARZ 40g Rs 10

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
56
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 restricts itself to “Meerut”.

57
 OBJECTIVES OF THE STUDY

This project is based on the comparative study consumer behavior towards Nestle and

Cadbury chocolates. Objectives of the study are:

 To know about the level of customer satisfaction associated with the product and

the customer preference level.

 To increase customer satisfaction and recapture the market share by fulfilling the

customer needs.

 To study the factors affecting the consumption pattern.

58
 CHAPTER -2

RESEARCH
METHODOLOGY

59
RESEARCH METHODOLOGY

This chapter describes the methodology of the study. This project is based on information

collected from primary sources. After the detailed study, an 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 Delhi

and collected the data. After being fully aware of the objectives of the study and the research

problem, it was found out that it was Descriptive research.

Survey design:

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.

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.

Sample Area:

Localities of Delhi Distt. Delhi.

Research Period:

Research work is only carried for 3 weeks.

Research Instrument:

60
This work is carried out through self-administered questionnaires. The questions included

were open ended, dichotomous and offered multiple choices.

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 “Comparative

study of consumer behavior towards Nestle and Cadbury 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.

Data Analysis:

The data is analyzed on the basis of suitable tables & graph by using mathematical

techniques. The technique that I have used is bar technique.

Swot analysis of Cadbury

SWOT Analysis of R&D in Cadbury:

Strengths:

 Cadbury is the largest global confectionery supplier, with 9.9% of global market

share.

 High financial strength (Sales turnover 1997, £7971.4 million and 9.4%)

 Strong manufacturing competence, established brand name and leader in innovation.

 Advantage that it is totally focused on chocolate, candy, chewing gum, unique

understanding of consumer in these segments.

 Successfully grown through its acquisition strategy. Recent acquisitions, including

Adams, 2003, enabled it to expand into important markets like the US market.

61
. Weaknesses:

 The company is dependent on the confectionery and beverage market, whereas other

competitors e.g. nestle have a more diverse product portfolio, where profits can be

used to invest in other areas of the business and R&D.

 Other competitors have greater international experience - Cadbury has traditionally

been strong in Europe. New to the US, possible lack of understanding of the new

emerging markets compared to competitors.

Opportunities:

 New markets. Significant opportunities exist to expand into the emerging markets of

China, Russia, India, where populations are growing, consumer wealth is increasing

and demand for confectionery products is increasing.

 The confectionery market is characterized by a high degree of merger and acquisition

activity in recent years. Opportunities exist to increase share through targeted

acquisitions.

 Key to survival within the FMCG market is increasing efficiency and reducing costs.

Cadbury Fuel for Growth and cost efficiency programmes seek to bring cost savings

by: 1. Moving production to low cost countries, where raw materials and labour is

cheaper.

2. Reduce internal costs - supply chain efficiency, global sourcing and procurement,

and wise investment in R&D.

 Innovation is key driver. To respond to changes in consumer tastes and preferences -

healthier snacks with lower calories need to be developed. R&D and product launches
62
 have led to sugar-free & center filled chewing gum varieties and Cadbury premium

indulgence treat. Low-fat, organic and natural confectionery demand appears strong.

Threats:

 Worldwide - there is an increasingly demanding cost environment, particularly for

energy, transport, packaging and sugar. Global supply chain in low cost locations.

 Competitive pressures from other branded suppliers (national and global). Aggressive

price and promotion activity by competitors - possible price wars in developed

markets.

 Social changes - Rising obesity and consumers obsession with calories counting.

Nutrition and healthier lifestyles affecting demand for core Cadbury products.

Cadbury Marketing SWOT Analysis:

Strengths:

 Key US soft drinks player – the Dr Pepper Snapple Group has inherited a position as a

leading soft drinks player in the US, boasting high-profile brands such as those which

comprise its name and the likes of 7-Up and Schweppes.

 Independent drinks business – following the demerger from Cadbury Schweppes, the

sole focus of the new Dr Pepper Snapple Group is soft drinks, a status that should

allow it to better target growth in the sector.

 Strong distribution system – the Dr Pepper Snapple Group has inherited the largest

independent distribution network in the US and a reduced reliance on Coca-Cola

Enterprises and Pepsi Bottling Group for securing access to the market for its brands.

63
Weaknesses:

 Overexposed to US carbonates – despite its emphasis on expanding its non-carbonates

presence, the Dr Pepper Snapple Group remains over-reliant on the floundering US

carbonates market. As such, it is exposed to fluctuations in this marketplace.

 Weaker financial position – following the demerger, the Dr Pepper Snapple Group

finds itself operating without financial backing of what was the much larger Cadbury

Schweppes group, which could also rely on confectionery revenues.

 Limited product portfolio – the Dr Pepper Snapple Group has a smaller product

portfolio than its competitors, in particular The Coca-Cola Company and PepsiCo,

which provides a smaller base from which to rapidly expand and diversify its product

offer.

 Geographic constraints – owing to the multiple franchisee ownership of core brands

such as Schweppes, Dr Pepper and 7-Up, the Dr Pepper Snapple Group is restricted in

terms of international expansion, which given its reliance on the US, is a definite

weakness.

 Cadbury role shrinks – in its new guise, Cadbury Plc became a smaller-scale, regional

soft drinks player and hence, cannot rely on the same level of financial backing and

brand exposure to generate revenues as was available before.

Opportunities:

 RTD tea potential – the Dr Pepper Snapple Group is in a good position to exploit

growth in RTD tea in the US in the short term as consumers continue to abandon

carbonates in search of better for you non-carbonated beverages.

 Functional fillip – functional bottled water and other functional drinks in the US are

growth opportunities for the Dr Pepper Snapple Group, with the shift away from

unhealthily perceived carbonates benefiting better for you beverages.

64
  Bolder market segmentation – the Dr Pepper Snapple Group has the ability to benefit

from a bolder approach to its functional drinks portfolio. Beverages which claim to

lower blood pressure levels, make the skin beautiful and increase fat burning are

among the latest to emerge on the market.

 Non-carbonates in Australia – Cadbury Plc is in a position to benefit from marked

growth in a number of non-carbonates categories in Australia, in particular bottled

water, functional drinks and RTD tea, with all three set to outperform overall soft

drinks.

Threats:

 Key market maturity – the Dr Pepper Snapple Group’s key US carbonates market is

set to contract in the short term, as consumers continue to switch to healthier soft

drinks. This malaise will put pressure on margins at the company.

 High level of industry consolidation – the global soft drinks market is characterized by

a high level of consolidation, with the top rankings held by the major companies The

Coca-Cola Company, PepsiCo and Danone. As these companies are stretching their

operations globally, this will pose challenges for the Dr Pepper Snapple Group in

terms of entering new markets and building out its core sector presence.

 Rising raw material costs – the price of raw materials such as packaging, fruit and

fuels are expected to continue to rise in the short term, a development which is certain

to place greater downward pressure on the company’s profit margins and threaten

development plans.

65
 CHAPTER -3
DATA ANALYSIS OF THE
STUDY

66
 DATA ANALYSIS OF THE STUDY

1. LIKING FOR THE CHOCOLATES

Table: 1

Liking for the Chocolate Yes No

Number of Respondents 62 3

LIKING FOR THE CHOCOLATES

70 62

60

50
Number of Persons
40
YES
30
NO
20

10 3

0
Response

Chart: 1

From the above analysis of the given sample of 65 respondents it is concluded that out of 65

people 62 people likes to eat chocolate while only 3 people don’t prefer to eat chocolate.

2. DIFFERENT AGE GROUPS

67
Table: 2

AGE GROUPS 8-13 year 14-17 year

NUMBER OF 35 30

RESPONDENTS

AGE GROUPS

AGE GROUPS

35
35

34

33
NUMBER OF
RESPONDENTS 32

31 30 8-13 year

30 14-17 year

29

28

27
AGE GROUPS

Chart: 2

According to the above analysis it is concluded that I have surveyed 65 respondents out of

which 35, 30 belongs to age group 8-13 & 14-17 respectively.

68
3. PREFERENCE ACCORDING TO AGE GROUPS

Table: 3

AGE GROUPS

BRANDS 8-13 14-17

CADBURY 29 25

NESTLE 19 18

NO CONSUMTION 1 2

PREFERNCE ACCORDING TO AGE GROUP

29
30 25
NUMBER OF
CONSUMERS 25 19 18
20
15
10 CADBURY
1 2
5 NESTLE
0
NONE
8-13 Year 14-17
Year

AGE GROUP

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 less preferred.

69
4. BRAND PREFERENCE

Table: 4

BRANDS PREFERENCE BY CONSUMERS

CADBURY 54

NESTLE 37

BOTH 29

Brand Preference

60 54

50
37
40
No.of PERSONS
29 Cadbury
30
Nestle
20
Both
10

Chocolate Brands

Chart: 4

From the above analysis of given sample of 62 respondents who eat chocolates it is concluded

that only 37 people prefer to eat Nestle chocolates while 54 people likes to eat Cadbury

chocolates& in total of 62 there are 29 people who eat both brand .

5. PURCHASE OF CHOCOLATES

PURCHASE OF CADBURY CHOCOLATES

Table: 5

CADBURY CHOCOLATES

70
SUB- BRANDS NUMBER OF RESPONDANTS

DAIRY MILK 44

5 STAR 34

PERK 18

CELEBRATIONS 8

TEMPTATIONS 5

Cadbury Chocolates Purchased By People

44
45

40
34
35
Dairy Milk
30
Number of Persons 25 5-Star
18
20
Perk
15
8
10 Celebrations
5
5
Temptation
0

Sub - brands of Cadbury Chocolates

Chart: 5

From the above analysis of given sample of 54 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.While surveying we have found that many people

are not aware of temptation chocolate.

6. PURCHASE OF NESTLE CHOCOLATES

Table: 6

NESTLE CHOCOLATES

SUB- BRANDS NUMBER OF RESPONDANTS

71
KIT KAT 25

MUNCH 24

MILKY BAR 19

BAR- ONE 9

MILK CHOCOLATE 13

Nestle Chocolates Purchased by People

25
24
25

19
20
Kit Kat
Number of Persons
15 13
Munch

9
10 Milky Bar

Bar One
5
Milk Choc olate

0
Sub brands of Nestle Chocolates

hart: 6

From the above analysis of given sample of 37 respondents who eat Nestle chocolates it is

concluded that mostly all sub-brands are purchased by people but top most is Kit Kat

followed by Munch and Milky Bar. While surveying we have found that many people are not

aware of Bar One.

7. OVERALL PURCHASE OF CHOCOLATES

Table: 7

OVERALL PURCHASE OF SUB- BRANDS OF CHOCOLATES

SUB-BRANDS PERCENTAGE OF PURCHASE
DAIRY MILK 22.11

72
5 STAR 17.08
PERK 9.04
CELEBRATIONS 4.02
TEMPTATIONS 2.51
KIT KAT 12.56
MUNCH 12.06
MILKY BAR 9.54
BAR ONE 4.52
MILK CHOCOLATE 6.52
Sub brands of Chocolates purchased by people

Dairy Milk

7% 5-Star
5%
Perk
22% Celebrations
10%
Temptation
12% Kit Kat
17%
Munch
13%
9% Milky Bar

3% 4% Bar- one

Milk Chocolate

hart: 7

From the above analysis it is concluded that overall Dairy Milk is purchased by people

followed by 5 Star while Temptation and Bar One is least purchased by people.

8. INFLUENCING FACTORS DURING PURCHASE

Table: 8

FACTORS

FLAVOUR/TASTE

73
Very important Important Normal Least None

important

42 19 1

flavour/taste

45

40

35

30 Very Important Important

25

20
Normal least Important
15

10
None
5

0
INFLUENCING FACTORS DURING PURCHASE

PRICE

Very important Important Normal Least None

important

15 13 23 1 10

price

25

20

Very Important Important

15

10 Normal least Important

None

INFLUENCING FACTORS DURING PURCHASE

10. QUALITY

Very important Important Normal Least None

important

74
13 22 16 2 9

Quality

25

20

Very Important Important

15

10 Normal least Important

None

INFLUENCING FACTORS DURING PURCHASE

PACKAGING

Very important Important Normal Least None

important

19 18 12 6 7

Packaging

20

18

16

14
Ve ry Important Important
12

10

8 Normal least Important

6

2 None

INFLUENCING FACTORS DURING PURCHASE

11. FORM

Very important Important Normal Least None

important

15 13 16 9 9

75
 Form

16

14

12
Very Important Important
10

6 Normal least Important

2
None

INFLUENCING FACTORS DURING PURCHASE

BRAND

Very important Important Normal Least None

important

21 22 10 3 6

Brand

25

20

Very Important Important

15

10 Normal least Important

None

INFLUENCING FACTORS DURING PURCHASE

12. IMAGE

Very important Important Normal Least None

important

18 18 13 4 9

76
 Image

18

16

14

12 Very Important Important

10

8
Normal least Important
6

2 None

INFLUENCING FACTORS DURING PURCHASE

COLOR

Very important Important Normal Least None

important

28 12 12 5 5

Color

30

25

20 Very Important Important

15

Normal least Important

10

5
None

INFLUENCING FACTORS DURING PURCHASE

13. SHAPE

Very important Important Normal Least None

important

18 12 10 6 16

77
 Shape

18

16

14

12 Very Important Important

10

8
Normal least Important
6

2 None

INFLUENCING FACTORS DURING PURCHASE

QUANTITY

Very important Important Normal Least None

important

18 22 6 6 10

Quantity

25

20

Very Important Important

15

10 Normal least Important

None

INFLUENCING FACTORS DURING PURCHASE

According to the above analysis it is concluded that on an average mostly people are

influenced by flavor/taste followed byprice, quality, color, brand and image.

It is surprised to know that very few people are influenced by packaging of the

chocolate.

14. FACTORS GIVING MOST SATISFACTION TO CONSUMERS

FACTORS

FLAVOUR/TASTE

78
Very satisfied Satisfied Normal Least satisfied Can’t say

34 18 8 1 1

Flavour/Taste

35

30

25
Very Satisfied Satisfie d
20

15

10
Normal Least Satisfied

0
Can't Say
FACTORS GIVING MOST SATISFACTION TO CONSUMERS

PRICE

Very satisfied Satisfied Normal Least satisfied Can’t say

13 27 20 0 2

Price

30

25

20
Very Satisfied Satisfie d
15

10
Normal Least Satisfied
5

0
Can't Say
FACTORS GIVING MOST SATISFACTION TO CONSUMERS

15. QUALITY

Very satisfied Satisfied Normal Least satisfied Can’t say

20 13 18 4 7

79
 Quality

20
18
16
14
12 Very Satisfied Satisfied
10
8
6
Normal Least Satisfied
4
2
0
Can't Say
FACTORS GIVING MOST SATISFACTION TO CONSUMERS

PACKAGING

Very satisfied Satisfied Normal Least satisfied Can’t say

19 22 13 7 4

Packaging

25

20
Very Satisfied
15
Satisfied
10
Normal
5
Least Satisfied
0
Can't Say
FACTORS GIVING MOST SATISFACTION TO CONSUMERS

16. FORM

Very satisfied Satisfied Normal Least satisfied Can’t say

18 16 16 5 7

80
 Form

18
16
14
12
Very Satisfied Satisfied
10
8
6
Normal Least Satisfied
4
2
0
Can't Say
FACTORS GIVING MOST SATISFACTION TO CONSUMERS

BRAND

Very satisfied Satisfied Normal Least satisfied Can’t say

26 17 13 3 3

Brand

30

25

20
Very Satisfied Satisfied
15

10
Normal Least Satisfied
5

0
Can't Say
FACTORS GIVING MOST SATISFACTION TO CONSUMERS

IMAGE

Very satisfied Satisfied Normal Least satisfied Can’t say

18 16 17 7 4

Image

18
16
14
12
Very Satisfied Satisfied
10
8
6
Normal Least Satisfied
4
2
0
Can't Say
FACTORS GIVING MOST SATISFACTION TO CONSUMERS

COLOR

Very satisfied Satisfied Normal Least satisfied Can’t say

81
24 13 11 10 4

color

25

20

15 Very Satisfied Satisfied

10

Normal Least Satisfied

5

0
Can't Say
FACTORS GIVING MOST SATISFACTION TO CONSUMERS

SHAPE

Very satisfied Satisfied Normal Least satisfied Can’t say

13 19 14 9 7

Shape

20
18
16
14
12 Very Satisfied Satisfied
10
8
6
Normal Least Satisfied
4
2
0
Can't Say
FACTORS GIVING MOST SATISFACTION TO CONSUMERS

QUANTITY

Very satisfied Satisfied Normal Least satisfied Can’t say

18 24 8 7 5

82
 Quantity

25

20

15 Very Satisfied Satisfied

10

Normal Least Satisfied

5

0
Can't Say
FACTORS GIVING MOST SATISFACTION TO CONSUMERS

According to the above analysis it is concluded that on an average mostly people are

influenced by flavor/taste followed by quality,brand, price and quantity. Here shape is not all

influencing people while purchasing.

FINDINGS

83
 CONSUMER RESEARCH:

Consumer research deals with consumer and their problems and solution to the problems. In

this I came to know about the consumers need and expectation levels regarding products and

ascertainable levels of consumer satisfaction.

 PRODUCT RESEARCH:

Under product research I came to know about the modification which consumers wants as to

the quality, packing, shape, color, and quantity etc of their favorite chocolate.

 PRICING RESEARCH:

This includes ability to consume, to pay for the product, how much a person can spend on

his/her favorite chocolate. In this I have tried to find out consumer’s price expectations and

reactions.

 ADVERTISING RESEARCH:

Under this I have concluded that whether the advertisement appeals the consumers or not.

This also includes evaluating and selecting the proper media-mix and measuring advertising

effectiveness.

84
 CHAPTER -4

SUGGESTIONS AND
RECOMMENDATIONS

85
SUGGESTIONS AND RECOMMENDATIONS

 Company should concentrate more on television for advertisement, as mostly people

get attracted through television only.

 For promotional offers, company should go for price offer rather than going for other

ways.

 People are unsatisfied with the price and quantity of chocolate so companies should

concentrate in this regard also.

 Company should launch new product with reasonable price range of 5-10 with good

flavor/taste with crunch in it for ex:

-chocolate chips

-snacks biscuits

-ice creams

 Increase the length of chocolate by squeezing the width of packet & adding 10% extra

large.

 By acting as sponsor for activities at college level as their product could directly sell

and cash.

 By opening a small coffee shop at localities with other products of company store as

nestle does for ex: Nescafe

86
 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.

 Due focus is made on particular age group.

87
CHAPTER -5
CONCLUSION

88
 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, low price, 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.

89
BIBLIOGRAHY

90
 BIBLIOGRAHY
Books

 Beri, Marketing Research ,Tata MC Graw Hill ,4th Edition

 Kothari C R, Research Methodology Methods & techniques, New Age International

Publishers ,2nd Edition,2004

 Kotler Philip, Marketing Management Analysis, planning Implementations and

control, Pearson Education 12th Edition

Websites

 http://en.wikipedia.org/wiki/preference

 http://www.aphrodite-chocolates.co.uk/history_chocolate.htm

 http://www.cadbury.co.nz/carnival/index.htm

 http://www.cadburyindia.com

 http://www.chocolatereview.co.uk

 http://www.nestle.com

 http://www.packaging-technology.com/…/cadbury4.html

91
 QUESTIONNAIRE

PROJECT REPORT ON CONSUMER BEHAVIOUR TOWARDS NESTLE

AND CADBURY CHOCOLATES

Que1. Do you eat chocolate?

Yes No

Que2. Which brand of chocolate do you prefer?

Cadbury Nestle

Que3. Which sub-brand you have purchased?

Cadbury Nestle

Dairy Milk Kit Kat

5Star Munch

Perk Milky Bar

Celebrations Bar-One

Temptation Milk Chocolate

92
 Que4. How much importance do you give to the following

factors when you purchase a chocolate? (Tick in the desired

column)

Factors Very Important Normal Least None

Important Important

Flavor/taste

Price

Quality

Packaging

Form

Brand

Image

Color

Shape

Quantity

Que6. How much are you satisfied with the following factors in your preferred

chocolate? (Tick in the desired column)

Factors Very Satisfied Normal Least Can’t Say

Satisfied Satisfied

Flavor/taste

Price

Quality

93
Packaging

Form

Brand

Image

Color

Shape

Quantity

Que7. Which form of a chocolate do you like?

Hard Nutties

Crunchy Chew

Que8. What pack do you purchase?

Small Big Family Pack

Que9. Which promotional offers attract you most?

Free gifts Price Offer Any other

Que10.Which of these factors affect your purchase?

 Advertisement

 Suggestion from friends and relatives

94
  Attractive Display

 Doctors Advice

 Brand Ambassadors

 Ingredients

Que11. Which media of advertisement influence your purchase?

Television Newspapers Brochures

Hoarding Display

Que12. How frequently do you purchase chocolates?

Once in a fortnight daily

Weekly Monthly

Quarterly

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

Below5 5-10 10-20

20-30 Above 30

95
Que14. If your preferred brand is not available for repeat purchases then what will

you do?

 Postpone your purchase

 Switch over to other brand

 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?

No, not at all I may consider

No, I shall not can’t say

Que16. If you don’t like to change to the new brand, then what are the reasons for

continuing to purchase the old brand?

PERSONAL DETAILS

Name:

Address:

Age:

Between 8-13 between 14-17

Gender:
Phone Number:
Education:
Profession:

THANKS

96