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On A STUDY ON CUSTOMER PREFERENCE TOWARDS CADBURY'S AND

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 RESEARCH PROJECT REPORT
(BBA-2603)

On
A STUDY ON CUSTOMER PREFERENCE TOWARDS CADBURY’S
AND NESTLE CHOCOLATES IN LUCKNOW

Towards partial fulfillment of

Bachelor of Business Administration (BBA)
(BBD University, Lucknow)

Guided by Submitted by

Dr. Shweta Srivatava Ajil Hussain Aman

University Roll No.-
1170671035

Session 2019-2020
School of Management

Babu Banarasi Das University

Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India
 CERTIFICATE FROM THE GUIDE OF THE
INSTITUTE

This is certify that Mr. Ajil

Hussain Aman student of BBA VI Semester, Session 2019-2020,
of Babu Banarasi Das University, has successfully completed the
Research Project in the area of Marketing, under the guidance of
Dr. Shweta Srivastava.

His topic on Research study is A

Study On Customer Preference Towards Cadbury’s And Nestle
Chocolates In Lucknow.

…………………….………… …………………….…………

Guide- SOM Dean / Incharge- SOM

i
 ACKNOWLEDGEMENT

I would like to take this opportunity as a platform to thank various individuals, without the
support of whom this project would not have been successful.

I would like to express my heartfelt gratitude and thanks to Dr. Shweta Srivastava for her
guidance and support throughout this study. I am thankful to my Institute for providing me with
proper resources and fostering my research work.

I would like to take this opportunity to thank all the respondents who trusted me and gave their
valuable. I also thank the Faculty Supervisors and Industrial supervisors under whose able
guidance and kind cooperation I was able to complete my study titled, "A STUDY ON
CUSTOMER PREFERENCE TOWARDS CADBURY’S AND NESTLE CHOCOLATES
IN LUCKNOW".

I have put in my best efforts to make this project as informative and understandable as possible.
Every effort has been made to enhance the quality of work. However, I owe the sole
responsibility of the shortcomings, if any, in the study.

AJIL HUSSAIN AMAN

ii
 PREFACE

As a part of our course curriculum I have prepared a project report on a topic

to get the right exposure to the practical aspects of business management.

I want to express my gratitude for the experience and practical knowledge that I earned during
the project. In this project report I had presented my great experience in the form of words. In
making the project report theoretical knowledge was needed more than the practical which was
given to us by my professors in my institutes. In the market the experience relating to the
practical knowledge was very good which realized me about the real conditions of the marketing.

The project flows logically consisting of a questionnaire. I hope that the findings and the

suggestions will help the company, confidently to formulate its strategy in comparison to its

competitors. I have enjoyed my Field a study on customer preference towards Cadbury’s and

Nestle chocolates and have learnt lots of new things and actively participated in so many

promotional activities during the launch of a new store, which will be helpful to me during my

work in any organization. I am please to work in this esteemed organization. I have tried my

level best to make this report a reader friendly & also did my level best to fulfill the objective.

iii
 EXECUTIVE SUMMARY

I n t h i s r e s e a r c h I h a v e s u r v e y t h e p r o d u c t p e r f o r m a n c e a n d b u yi n g

b e h a v i o r o f t w o famous brands of chocolates – Nestle and Cadbury, which are consumed by

people of all ages. During this research I have interacted with people of “Lucknow”. 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 .I n t h i s r e s e a r c h I h a v e s u r v e ye d t h a t h o w f r e q u e n t l y

a n d h o w m u c h c h o c o l a t e t h e y consume, whether they buy small, big or family pack.

Trend of ongoing changes in their l i k i n g s h a s b e e n s h o w n i n t h e r e p o r t . I n t h i s

report I have tried to explain the entire research and facts product wise .

iv
 Table of Content

CONTENT PG. NO.

1. INTRODUCTION 01

2. REVIEW OF LITERATURE 12

INDUSTRY PROFILE 18

3. o NESTLE 20

o CADBURY 25

4. OBJECTIVES 29

RESEARCH METHODOLOGY 30

o METHOD OF DATA COLLECTION. 32

5. o SAMPLE DESIGN 32
o UNIVERSE 32
o SAMPLE SIZE 32

6. LIMITATIONS 33

7. ANALYSIS, INTERPRETATIONS & FINDINGS 34

8. S.W.O.T. ANALYSIS 63

9. SUGGESTIONS & RECOMMENDATION 67

10. CONCLUSION 69

v
11. BIBLIOGRAPHY 71

12. APPENDIX 72

vi
 CHAPTER-1

INTRODUCTION

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 buyers beware or when the market was mainly the seller’s market. Now the whole concept of
consumers over eighty prevails. The manufacturers produce and the seller’s sell whatever the
consumer likes.

In this sense, consumer is the supreme in the market. As consumers, play a very vital role in the
health of the economy local, national or international. The decision 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.

So the study conducted show customer preferences in NESTLE and CADBURY .Market frame
strategy to it, this will help to analyze how customer perceive these products on variables like

1|P ag e
price, quality, advertisement, taste, packaging, brand, loyalty, etc. The study shows which
particular brand of chocolate is most preferred by the people of different age group.

In this research, I have to survey and find out how frequently and how much chocolate do people
consume, whether they buy small, big or family pack. The comparative study of chocolates
between CADBURY and NESTLE helps in product development and improvement in launching
of new product.

Reason for selecting the Topic is that, everybody knows that “Customer is a king of Market.”
There was a time years ago, whatever the seller produces, he sells in the market and the customer
has to buy the same. But in the current scenario due to the keen competition in the market, the
situation has changed. Now seller has to produce what customers want, to sustain in the market.

In the same way to know what customer wants, one has to observe the behavior of the customer.
This is the reason why this topic is given importance for selection. Once marketer understands
the mentality, thought process and reaction for certain product, he can easily grab the market
share. Sales are largely bases on the Customers then the product and services offered by the
marketer.

Comparative research is the act of comparing two or more things with a view to discovering
something about one or all of the things being compared. Comparative study helps to evaluating
our strength and weakness with other competitor in same sector.

After this research, I would come to know how people perceive these products on variables like
price, quality, advertisement, taste, packaging, brand, loyalty, etc. I also would come to know
which particular brand of chocolate is most preferred by the people of different age group.

History of chocolate:

The origin of chocolate can be traced back to the ancient Maya and Aztec civilizations in
Cent ral Amer ica, who first enjo yed “chocolat i” a much -pr ized spicy dr ink made
fro m 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-

“Chocolat e”( in t he form of a luxur y dr ink) was consumed in large quant it ies by
t he Aztecs: the drink was described as “ finely ground, soft, foamy, reddish, bitter with chill
water, aromatic flowers, vanilla and wild bee honey .The dr y climat e meant t he Azt ecs

2|P ag e
were unable to grow cocoa trees, and had to obt ain supplies of cocoa beans from
“tribute” or trade
Don Cortes-
The Spanish invaded Mexico in t he 16 t h cent ury, by t his t ime t he Azt ecs had
creat ed a p o w e r f u l e m p i r e , a n d t h e S p a n i s h a r m i e s c o n q u e r e d M e x i c o .
D o n C o r t e s w a s m a d e captain general and governor of Mexico. When he returned to
Spain in 1528 he loaded his galleons with cocoa beans & equipment for making the chocolate
drink. Soon “chocolate” became a fashionable drink enjoyed by the rich in Spain.

Chocolate across Europe

An It alian t raveler, Francesco carlett i, was t he first to break t he Spanish
mo nopoly. 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 t o have medicinal benefit s as well as being a nourishing
food. Gradually t he cust om 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 S loane, who - aft er traveling in sout h Amer ica - focused on
cocoa and food values, bringing a milk chocolate recipe back to England. The original
Cadbury milk chocolate was prepared to his recipe.

Descriptive study of chocolate:

The ear liest record of chocolat e was over fift een hundred years ago in t he cent ral
Amer ica rain forest s, where t he tropical mix of high rain fall co mbined wit h high
year around t emperat ures and humidit y provide t he ideal climat e for cult ivat ion
of t he plant from which chocolat e is der ived, t he cacao tree. Chocolat e is made
fro m t he cocoa bean, found in pods growing fro m t he trunk and lower branches of
the cacao tree, Latin name “the obroma cacao” meaning “food of the gods” Cacao was
corrupt ed into t he more familiar “cacao” by t he ear ly European explorers. The
Maya brewed a spicy, bit t ersweet drink by roast ing and pounding t he seeds of t he
cocoa 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 t he wealt hy and
religious elite; they also ate cacao porridge. The Azt ecs, like t he Mayans, also enjo yed

3|P ag e
cacao as a beverage fer ment ed from the raw beans, which again feat ured
prominent ly in r it ual and as a luxur y available only t o t hevery 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 Azt ec’s regarded chocolat e as an aphrodisiac and t heir emperor, Mont ezuma
reput edly drank it fift y t imes a day from a golden goblet and is quot ed as saying
o f xocolat l: “t he divine dr ink ”, which builds up resist ance and fight s fat igue. A
cup o f t his precious drink permits a man to walk for a whole day without food”

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, Johann esvan hout en,
invent ed a met hod of ext ract ing t he bit t er t ast ing fat or “cocoa butt er” from t he
roast ed ground beans, his aim was t o make t he drink smoot her and more
palat able, however he unknowingly paved the way for solid chocolate as we know it.
Cho co lat e as we k no w it t o d ay fir st ap p ear ed in 1 8 4 7 when fr y & so ns
o f B r i s t o l , England – mixed sugar wit h cocoa powder and cocoa butt er (made
by t he van hout en 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 butt er wit h sugar and dried milk powder to produce
t he fir st milk chocolate.

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 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.

4|P ag e
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.

Product play-

In as early as1998, India’s largest chocolate maker, Mondelēz—earlier called Cadbury—

introduced chocolate packets that cost as low as Rs5.

This was mainly to persuade non-users to try the products and to penetrate into rural areas. At the
other end of the market, Mondelēz is also expanding its range of premium chocolates for an
urban clientele with a more international palette. According to Prashant Peres, director,
marketing (chocolates) at Mondelez India, to keep up with the growing demand in the premium
segment, the company has introduced new products in recent months.

“With product and packaging innovations like our various home treat packs, we are also focusing
on creating new consumption occasions in the mainstream segment,” Peres told Quartz in an
email. Alongside, the traditional notion that chocolates are meant only for children is also
changing. “Previously chocolates were predominantly seen as a confectionary product for
children, which also limited their consumption. However, market leader Cadbury’s (Mondelez)
has focused on growing chocolate consumption by adults, for gifting as well as a celebratory
consumption instead of traditional sweets”, said Devangshu Dutta, chief executive of Third
Eyesight, a retail consultancy.

Italy’s Ferrero Spa—makers of the popular Kinder Joy chocolates, Nutella chocolate spread,
Ferrero Rocher chocolates and Tic Tac mints—has seen its revenue shoot up in India. In 2014,
the company’s sales in India rose 76% to Rs1,014 crore ($160 million) and it posted its first-ever
profit of Rs12 lakh ($18,931). Such numbers have enticed others to join India’s chocolate craze.
In March this year, Mars International India, a subsidiary of the American Mars Inc, announced
that it will invest Rs1,005 crore ($159 million) in a new factory in Pune in Maharashtra. The
plant will make brands like Snickers and Galaxy. Factors such as rising cocoa prices and lack of
supply-chain infrastructure in India have not exactly dampened the enthusiasm of chocolate
makers.

5|P ag e
“The chocolate industry in India is growing at nearly 20% every year,” MV Natarajan, general
manager, Mars International India, said in a statement, “and we see this as a huge opportunity to
expand our chocolate portfolio in the country in the coming years.” For India’s chocolate makers
and lovers alike, the fun has just begun.

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 Varities:- There are two quite different basic classifications of cocoa, under
which practically all varieties can be categorised: 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.

Harvesting Cocoa & Cocoa processing-

Chocolate production starts with harvesting coca in forest. Cocoa comes from tropical evergreen
Cocoa trees, such as The obroma Cocoa, which grow in the wet lowland tropics of Central and South
America, West Africa and Southeast Asia (within 20 C of the equator) (Walter,1981) . Cocoa needs to
be harvested manually in the forest. The seed pods of coca will first be collected; the beans will be
selected and placed in piles. These cocoa beans will then be ready to be shipped to the manufacturer
for mass production. 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. Chocolate
production starts with harvesting coca in a forest. Cocoa comes from tropical evergreen Cocoa trees,
such as The obroma Cocoa, which grow in the wet lowland tropics of Central and South America,
West Africa and Southeast Asia (within 20 C of the equator) (Walter,1981) . Cocoa needs to be
harvested manually in the forest. The seed pods of coca will first be collected; the beans will be
selected and placed in piles. These cocoa beans will then be ready to be shipped to the manufacturer for
mass production.

6|P ag e
Step 1: Plucking and opening the Pods- Cocoa beans grow in pods that sprout off of the trunk and
branches of cocoa trees. The pods are about the size of a football. The pods start out green and turn
orange when they are ripe. When the pods are ripe, harvesters travel through the cocoa orchards with
machetes and hack the pods gently off of the trees.

Machines could damage the tree or the clusters of flowers and pods that grow from the trunk, so
workers must be harvest the pods by hand, using short, hooked blades mounted on long poles to reach
the highest fruit.

After the cocoa pods are collected into basket, the pods are taken to a processing house. Here they
are split open and the cocoa beans are removed. Pods can contain upwards of 50 cocoa beans each.
Fresh cocoa beans are not brown at all, they do not taste at all like the sweet chocolate they will
eventually produce.

Cocoa Pods and harvesting

Step 2: Fermenting the cocoa seeds- Now the beans undergo the fermentation processing. They are
either placed in large, shallow, heated trays or covered with large banana leaves. If the climate is right,
they may be simply heated by the sun. Workers come along periodically and stir them up so that all of
the beans come out equally fermented. During fermentation is when the beans turn brown. This process
may take five or eight days. The fermentation process is decisive in the production of high quality
raw cocoa. The technique varies depending on the growing region.

Step #3: Drying the cocoa seeds- After fermentation, the cocoa seeds must be dried before they can
be scooped into sacks and shipped to chocolate manufacturers. Farmers simply spread the fermented
seeds on trays and leave them in the sun to dry. The drying process usually takes about a week and
results in seeds that are about half of their original weight. After fermentation, the raw cocoa still
contains far too much water; in fact about 60%.

7|P ag e
 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.

The Dried And Roasted Cocoa Beans

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.

Manufacturing Chocolate-

Once the cocoa beans have reached the machinery of chocolate factories, they are ready to be refined
into chocolate. Generally, manufacturing processes differ slightly due to the different species of
cocoa trees, but most factories use similar machines to break down the cocoa beans into cocoa
butter and chocolate (International Cocoa Organization, 1998). Firstly, fermented and dried cocoa
beans will be refined to a roasted nib by winnowing and roasting. Then, they will be heated and will
melt into chocolate liquor. Lastly, manufacturers blend chocolate liquor with sugar and milk to add
flavour. After the blending process, the liquid chocolate will be stored or delivered to the molding factory
in tanks and will be poured into moulds for sale. Finally, wrapping and packaging machines will
pack the chocolates and then they will be ready to transport.

Step #1: Roasting and Winnowing the Cocoa -The first thing that chocolate manufacturers do
with cocoa beans is roast them. This develops the color and flavor of the beans into what our
modern palates expect from fine chocolate. The outer shell of the beans is removed, and the
inner cocoa bean meat is broken into small pieces called "cocoa nibs."

The roasting process makes the shells of the cocoa brittle, and cocoa nibs pass through a series of
sieves, which strain and sort the nibs according to size in a process called "winnowing".

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.

8|P ag e
 Roasting and Winnowing

Step 2: Crushing and shelling:- The roasted beans are now broken into medium sized pieces in
the crushing machine.

Step 3: 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.

Grinding

Step 4: Blending Cocoa liquor and molding Chocolate:- After the mixing process, the blend is
further refined to bring the particle size of the added milk and sugar down to the desired fineness.
The Cocoa powder or 'mass' is blended back with the butter and liquor in varying quantities to make
different types of chocolate or couverture. The basic blends with ingredients roughly in order of
highest quantity first are as follows:

Milk Chocolate - Sugar, milk or milk powder, cocoa powder, cocoa liquor, cocoa butter,
Lethicin and Vanilla.

9|P ag e
White Chocolate - Sugar, milk or milk powder, cocoa liquor, cocoa butter, Lethicin and Vanilla.

Plain Dark Chocolate - Cocoa powder, cocoa liquor, cocoa butter, sugar, Lethicin and Vanilla. After
blending is complete, molding is the final procedure for chocolate processing. This step allows cocoa
liquor to cool and harden into different shapes depending on the mold. Finally the chocolate is
packaged and distributed around the world.

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 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 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.)

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
10 | P a g e
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-

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 is working up a voracious appetite for chocolates. A delectable combination of rising

disposable incomes, changing lifestyles and a young population’s growing penchant for
indulgence has transformed India into one of the world’s fastest growing chocolate markets. A
July report from French investment bank Society General predicts that in the next five years,
global confectioners will see the highest growth in four markets: India, Mexico, China and
Brazil. But it’s not just affluent Indians who are craving for chocolates, although they still
comprise nearly 80% of country’s chocolate sales, according to Technopak, a retail consultancy.
Lured by smaller, more affordable offerings, the rural hinterland and tier 2 and 3 cities—still
dominated by traditional Indian sweets—are developing quite a sweet tooth. Overall, India’s per-
capita spending on confectionery is tiny—and that means there’s plenty of room for growth.

11 | P a g e
 CHAPTER-2

REVIEW OF LITERATURE

Dr. Shendge (2012) on his study “A Study on Customer Preference towards Cadbury and Nestle
Chocolates with Special Reference to Navi Peth Area in Solapur City” viewed that Chocolate is
liked and eaten by all age group of people.

Attiya Kanwal (2011) on his study “Consumer preference of International brands over local
brands” aimed at determining consumer preference of international brands instead if national or
local brands. Consumer evaluates products based on information cues, which are intrinsic and
extrinsic. If a consumer is satisfied with a product, he will buy it again, become loyal and over
time develop a relationship with the brand. There are various factors which influence consumer
purchase decision. The price of a brand plays a fundamental role in the consumer’s choice of
brand. If a brand is priced too high then a consumer will avoid it. The price of a brand is an
indication of the quality of the brand as well. The country of origin of products is another cue
used as a sign of quality of a product. Products from developed countries are perceived to be of
better quality. Other factors include fashion, family and friends, brand name, availability,
advertising campaigns etc. The sample for this research is taken from Islamabad and Rawalpindi.
Simple random sampling was the technique used and the sample size was 100. Data collected for
research was through a questionnaire, which was distributed among both males and females of
various age groups and income levels. Calculations were then analyzed and interpreted using
percentage of respondents and frequency distribution. Consumers are seen to give preference to
international brands if asked to choose between an international brand and a national brand.
Consumers regard international brands to be of better quality, more durable and reliable.
Furthermore, they are more price and quality conscious and not very brand loyal. Local
companies need to emphasize on the quality of their products in advertisements and their
advertisements need to be more targeted and up-beat to attract the younger market segment.

Kaberi Bhattacharyya (2011) in his study “The Role of Media in Influencing Customers’
Brand Choice: Some Observations” told that a brand has arrived in the market, is alive and
kicking or simply pulling on. Similarly, generations of customers are made known that a brand
has still remained relevant in the changing context of time and space. Leveraging on the charm
of audio and video, brands engulf our senses and succeed in becoming an intrinsic part of our
lives. While the trust earned by them is directly proportional to their attributes and
24

12 | P a g e
functionalities, the buzz created around the brands by the media helps them break the clutter of
competition and stay vibrant in the consumers’ minds. Creative juices give birth to myriad
themes, processes, colours and themes and familiar and not-so-familiar faces take them forward.
Although advertisements traditionally remain the sheet anchor, brands use other above-the-line
and below-the-line techniques to gain an edge or grab eyeballs. All these definitely has fuelled
consumerism and the responsibility for developing the consumerist culture that have taken a vice
like grip over our lives and its catastrophic impact on the natural environment can be ascribed to
a large extent on the burgeoning media. But the irony is that it is the media again which has
declared these wrong-doings to the public and implicated the corporate or the brands into the
muddle. This has again thrust upon these brands or their mentors to engage in clean or green
activities that would resuscitate their image wholeheartedly.

G. Vani, M. Ganesh Babu and N. Panchanatham (2010) in his article “Toothpaste Brands –A
Study of Consumer Behavior in Bangalore City” focused that the external factors like
demographic, social, cultural ,price, quality ,product attributes etc for buying toothpaste. The
market share of any product is highly determined by the purchasing behavior of the consumers.
Following study is conducted by the researcher to find out the behavior of the consumers, to
analyze the preference of consumers, & consumer awareness. Descriptive research design was
adopted and the data is collected through primary and secondary sources. The method adopted
for conducting survey is questionnaire; Simple random sampling technique was adopted for
selecting the consumers.

Mr .K.Sivakumar (2007) on his article “Consumers Attitude towards the Products of Indian and
Multi National Companies - A Comparative Study with Reference to Electrical and Electronic
Products” stated that the entry of MNCs in India leads to exit of certain Indian companies of
various industries. However Indian people compromise to purchase Indian products, if they had
quality and special features in those products also. People are interested to buy the MNCs
products not only for quality or for product features but also for cost, brand image, service, social
status and host number of other factors.The impact of MNCs product in Indian industries should
play a positive role by framing same rules and regulations as framed for domestic countries. The
study attempts to research about the consumer attitude towards Indian and MNCs products for
electrical and electronic products in Chennai city and develops various aspects.

Consumer leant about chocolate from many sources, mainly from friends and families, through
advertisement and from their own experience. Whether a promotion and advertising hurt or help
a brand is under-researched (Mela, Gupta & Lehman, 1997). In the long-run, advertisement help
brands by making consumer less price sensitive and more loyal. The purchase decision
pertaining to particular brand and loyalty is a result of various attributes of the product.

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Advertisers must remember that advertising messages are interpreted differently between
different genders (Maldonando, Tansuhaj & Muehling; Hogg & Garrow; Putrevu). Previous
studies have proven that females were more likely to engage in elaboration than men
(Maldonado & Muehling).

Hogg and Garrow(2009) found that women paid more intention about the details of the
characters of an ad when asked to analyze advertising messages. They said that this may be
explained by the fact that females have a greater tendency than men to consider external
information and information related to others. Women are 'comprehensive processors' who try to
gather all available information about the product Advertisement can change consumer's
perception of a product in terms of attributes content and proportion and also influence
consumer's taste for attributes (Gwin & Gwin).

.
Brand preference and product attribute: Attributes are the characteristic or features that an object
may or may not have and includes both intrinsic and extrinsic (Mowen & Minor). Understanding
why a consumer choose a product based upon its attributes helps marketers to understand why
some consumers have preferences for certain brands (Gwin & Gwin). Both tangible and
intangible attributes of a product are equally important in choosing a product or brand (Myers).
There is no evidence that certain attributes are more related to customer loyalty than others
(Romariuk & Sharp). Romariuk and Sharp) suggested that marketers should focus more on how
many attributes the brand should be associated with and not what attributes. For low-
involvement products, consumers have more objective view of the nature of the attributes (e.g.
food, cosmetics) because they are constantly being advertised and promoted. Price is another
form of attribute used by consumers to evaluate a product. Price can sometimes be an indicator
of quality; with a higher price indicating higher quality (Mowen & Minor, 1998; Siu & Wong).
Consumers perceive that a higher price can be attributed to the higher cost of quality control (Siu
& Wong). Some consumers are highly price sensitive (elastic demand), whereby a high prices
may shift consumers to competitive brands (Mowen & Minor). Therefore price can have a
positive or negative influence on customers.

Lutton(2012) reported that chocolate is a calorie rich food with a high sugar and fat content. So
reducing the caloric intake of other foods is required. Moreover, chocolate contains a variety of
substances, some of which have addictive properties e.g. sugar, the obromine, and caffeine which
are stimulating and mood elevating and phenethylamine which can cause endorphin releases in
the brain. Chocolate also has high levels of arginine which is required in the replication of the
herpes virus. Chocolate should be avoided by those with active or recurring herpes infections.
Next, Nickyanns reported that some brands of chocolate contain small amounts of lead
sometimes from contamination during production and this ha been reported to cause mild lead

14 | P a g e
poisoning. A main ingredient in chocolate: the obromine makes it toxic to animals such as dogs,
cats, horses, parrots and small rodents.

According to Horne and Wootton, in Kosmo, 4 December 2007, the practice of eating dark
chocolate could increase the mind power. Horne, who is a cognitive psychology expert, where as
Wootton, who is an expert in biochemistry, reveal those practices through their latest book
entitled “Teach Yourself: Training Your Brain”. Horne said that dark chocolate contains a lot of
chemical substance needed while the brain is working, relaxing the muscle around blood vessels
which improve the blood flow to the brain

Taubert (2011), and colleagues at the University of Cologne, Germany reported that dark
chocolate, lower high blood pressure. Taubert’s team signed up six men and seven women aged
55-64. All of them had just been diagnosed with mild high blood pressure -- on average, systolic
blood pressure 153 and diastolic blood pressure of 84. Every day of two weeks, they ate a 100
gram candy bar and were asked to balance its 480 calories by not eating other foods similar in
nutrients and calories. Half the patients got dark chocolate and half got white chocolate. Those
who ate dark chocolate had a significant drop in blood pressure. Those who ate white chocolate
did not.

Susan Bordo (2011) have conducted a semiotic analysis of food and dessert advertisements,
they have fallen short of explaining why the fetishization of chocolate is perpetuated and
sexualized in contemporary media. With the exception of Diane Barthel’s analysis of the
chocolate box sociologists have rarely attempted to analyze the status issues surrounding
chocolate where certain chocolate brands evoke a higher status among consumers. Matthias
Varul’s article on Fair Trade goods does not mention chocolate specifically; however, he did
argue that Fair Trade is a serious challenge to a commodity’s fetishism. Current sociological
literature on this topic is scare; however, there has been plenty of research conducted on broader
food and consumption issues.

Research examining the sociology of consumption has discovered that topics that were once
labeled as insignificant such as, fashion, advertising and shopping are now crucial to
understanding consumers in contemporary society. The consumer is no longer regarded as a
passive entity subjected to media programming but rather an active participant in the
consumption of items. Contemporary sociologists identify consumption as involving the
“selection, purchase, use, maintenance, repair and disposal of any product or service” (Campbell

1995:102). Thorstein Veblen’s theory on conspicuous consumption is arguably the most widely
referred to of all theories in this field. Veblen focused upon the dynamics of conspicuous
consumption which is less relevant to chocolate culture; however, I will be drawing from his

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insights into the symbolism of luxury items which create a social distance between classes. The
most prominent recent theorist of consumption is Pierre Bourdieu . Bourdieu analyzed the notion
of taste, and associated taste with aesthetics and social distinction. Taste, like art, is not innocent
but helps enforce and police class distinctions. Thus, the consumption of upper class items can
enhance a person’s cultural capital.

While there is hardly any sociological literature on chocolate as a fetish, sociologists have
focused on issues surrounding food consumption such as taste, nutritional ignorance, eating
disorders and women’s insecurity about food. Much of the recent writings on this topic are
concerned about the representation of the ideal female body in the mainstream media. In order to
remain slim and attractive, women must avoid foods that are high in fat, sugar and calories.

Images of the ideal body have permeated the minds of many consumers who are inclined to view
the body as an object of admiration and a model for self-construction. Moreover, consumer
goods may serve to compensate for a person’s “feelings of inferiority, insecurity or loss, or to
symbolize achievement, success or power” (Campbell 1995:111).

Sociologists identify modern consumers as being concerned with the pursuit of pleasure rather
than the obtainment of satisfaction. The argument is that the consumer can take real experiences,
such as eating, drinking, and sexual activity, and refashion them into improved, imagined
scenarios. The essential activity of consumption is not the actual selection, purchase, or use of
products, but rather “the imaginative pleasure-seeking to which the product image lends itself”
(Campbell 1995:118). Thus sociologists argue that real consumption in contemporary society is
the result of a “mentalistic hedonism” (Campbell 1995:118).

Some sociologists have expanded on this notion of hedonist consumption and applied it to food
advertisements. Kaushik and Sen praised the value of semiotics when analyzing and decoding
chocolate and cigarette advertisements. A semiotic analysis of a Cadbury chocolate ad, which
depicts a father and daughter consuming chocolate, indicates that chocolate acts as a signifier of
a loving relationship between the giver and the receiver. Therefore, the advertisement has the
underlying meaning that Cadbury’s chocolate creates loving and enduring relationships.

Semiotic analysis is a useful tool that can help decode the behavior and beliefs present in
chocolate advertisements and brand imagery.

According to Kimmerle (2012), chocolate is the new coffee; chocolate contains ingredients
similar to coffee that can make people more alelt and keep them focused. Scientists at the
Massachusetts Institute of Technology observed that there are connections between chocolate
and mood in lab animals (Brenner, 1999).

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Macht and Dettmer (2006) concluded that chocolate consumption by normal-weight women
elevated mood and increased attentiveness.

Burks and Boles (2007) reported that chocolate had a soothing effect while exciting the senses,
and could be helpful in completing demanding intellectual work.

Chocolate contains antioxidants that are associated with positive health benefits (Patel, Parekh,
& Subhash, 2008). In recent years, several studies described chocolate as a functional food
(Dillinger & Barriga, 2000; Kelly, 2005; Neithercott, 2009; Schinella et aI., 2010; Visioli et aI.,.
According to Webster's New World Medical Dictionary, functional foods including any
modified foods or ingredients that may provide a health benefit beyond the traditional nutrients it
contains.

“Spread the joy. Don't just eat chocolate. Study it! ” (Willis Harlow Shapley Education Fund)

The motivation to know how far of chocolate products gives the good impression especially
through study its good taste and esthetic packaging design.

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 CHAPTER-3

INDUSTRY PROFILE

The first recorded evidence of

chocolate as a food product goes
back to Pre-Columbian Mexico.
The Mayans and Aztecs were
known to make a drink called
"Xocoatll from the beans of the
cocoa tree. In 1528, the conquering
Spaniards returned to Spain with
chocolate still consumed as a
beverage. A similar chocolate drink
was brought to a royal wedding in
France in 1615, and England
welcomed chocolate in 1662. To
this point "chocolate" as we spell it
today, had been spelled variously
as "chocalatall, "jocolatte", "jacolatte", and "chockelet.11

In 1847, Fry & Sons in England introduced the first "eating chocolate," but did not attract
much attention due to its bitter taste. In 1874, Daniel Peter, a famed Swiss chocolateer,
experimented with various mixtures in an effort to balance chocolates rough flavor, and
eventually stumbled upon that abundant product -- milk. This changed everything and
chocolate's acceptance after that was quick and enthusiastic.

Growing Cocoa Beans -

Cocoa beans are usually grown on small plantations in suitable land areas 20 degrees north or
south of the Equator. One mature cocoa tree can be expected to yield about five pounds of

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 chocolate per year. These are planted in the shade of
larger trees such as bananas or mangos, about 1000
trees per hectare (2,471 acres).

Cocoa trees take five to eight years to mature.

After harvesting from the trees, the pods (which contain
the cocoa beans) are split open, beans removed, and the
beans are put on trays covered with burlap for about a
week until they brown. Then they are sun dried until the
moisture content is below 7%. This normally takes another three days.

After cleaning, the beans are weighed, selected and blended before roasting at 250 degrees
Fahrenheit for two hours. Then shells are removed leaving the "nib." Nibs are crushed to create a
chocolate "mass." This is the base raw material from which all chocolate products are made.

Kinds Of Chocolate -

Milk Chocolate-

This consists of at least 10% chocolate liquor ("raw" chocolate pressed from carob
nibs) and 12% milk solids combined with sugar, cocoa butter (fat from nibs), and
vanilla. Sweet and Semi-Sweet Chocolate Are made from 15-35% chocolate liquor,
plus sugar, cocoa butter, and vanilla. Imprecision of the two terms causes them to
commonly be called "dark" or "plain" chocolate. Dark chocolate has a large following among
dessert makers, and for this reason is referred to as "baking" chocolate.

Bittersweet and Bitter Chocolate-

Bittersweet usually contains 50% chocolate liquor and has a distinct "bite" to the taste.
Bitter or unsweetened chocolate liquor also is used in baking and is also referred to as
"bakers" chocolate.

Creams and Variations-

Bite sized and chocolate covered. They are filled with caramels, nuts, creams, jellies, and
so forth.

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White Chocolate-

Is not really chocolate as it contains no chocolate liquor, Carob. This is a brown powder
made from the pulverized fruit of a Mediterranean evergreen. It is used by some as a
substitute for chocolate because it can be combined with vegetable fat and sugar, and
made to approximately the color and consistency of chocolate.

OVERVIEW OF ORGANIZATION- (Industry Profile)

NESTLE-
Nestle’s start date back to 1866, when
two split Swiss enterprise were found
that would later form the core of
Nestle. In the subsequent decades, the
two challenging enterprise forcefully
delayed their businesses throughout
Europe and the United States.

Nestle was formed in 1905 by the

merger of the Anglo-Swiss Milk
Company, established in 1866 by
brothers George Page and Charles
Page, and Farine Lactee Henri
Nestle, founded in 1866 by Henri
Nestle. The company grows significantly during the First World War and again following the
Second World War, expanding its contributions outside its early reduced milk and child formula
products. The company has made a number of corporate acquisitions, including Crosse &
Blackwell in 1950, Findus in 1963, Libby’s in 1971, Rowntree Mackintosh in 1988
and Gerber in 2007.

Nestle’s products include baby food, bottled water, breakfast cereals, coffee, confectionery, dairy
products, ice cream, pet foods and snacks. 29 of Nestle’s brands have annual sales of over 1
billion Swiss frans (about $1.1 billion), including Nespresso, Nescafe, KitKat, Smarties,
Nesquik, Stouffer’s, Vittel, and Maggi. Nestle has around 450 factories, operates in 86 countries,
and employs around 328,000 people. It is one of the main shareholders of L’Oreal, the world’s
largest cosmetics company.

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Nestle has a primary listing on the SIX Swiss Exchange and is a element of the Swiss Market
Index. It has a secondary listing on Euronext. In 2011, Nestle was listed No. 1 in the Fortune
Global 500 as the world’s most gainful business with a market capitalization of $ 200 billion,
Nestle ranked No. 13 in the FT Global 2011.

As nutrition, health and wellness company, Nestle, is committed to the improvement of value of
life by helping community in which it operates to meet basic and necessary human needs. The
competitors are glaxosmith con, Britannia, rei agro, kwality dairy, lakshmi energy, heritage
foods etc.

Over the years Nestle has used its resources, skills and technology to help find solutions to the
many socio-economic challenges facing communities. Many of the communities are confront by
challenges such as poor cleanliness, lack of clean water, poverty, diseases, underfeeding, food
security and many others.

Mission: Positively influence the social environment in which we operate as responsible

corporate citizens, with due regard for those environmental standards and societal aspirations
which improve quality of life.”

Vision: To be a leading, competitive, Nutrition, Health and Wellness Company delivering

improved shareholder value by being a preferred corporate citizen, preferred employer, preferred
supplier selling preferred products.

Company profile: Nestle India Ltd, one the biggest players in FMCG segment, has a existence
in milk & nutrition, beverages, prepared dishes & cooking aids & chocolate & confectionery
segments. The company is unavailable in the food business. The food business incorporate
product groups, such as milk products and nutrition, beverages, prepared dishes and cooking
aids, chocolates and confectionery. Nestle India manufactures products under brand names, such
as Nescafe, Maggi, Milky bar, Milo, Kit Kat, Bar-One, Milkmaid and Nestea.

The company has also introduced products of daily utilization and use, such as Nestle Milk,
Nestle Slim Milk, Nestle Fresh ‘n’ Natural Dahl and Nestle Jeera Raita. The company’s brands
include milk products and nutrition, prepared dishes and cooking aids, beverages, and chocolates
and confectionery. Their milk products and nutrition includes Nestle Everyday Dairy Whitener,
Nestle Everyday Ghee, Nestle Milk, Nestle Slim Milk and Nestle Dahl. Beverages Include
Nescafe Classic, Nescafe Sunrise Premium, Nescafe Sunrise Special and Nescafe Cappuccino.

Nestle India is a secondary of Nestle S.A. The company has attendance across India with 7
manufacturing facilities and four branch offices extend across the region. The four branch offices

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in the country help facilitate the sales and marketing of its products. They are in Delhi, Mumbai,
Chennai and Kolkata.

The company’s four factories were awarded the internationally predictable external certification
ISO 14001 for adherence to environmental processes and OSHAS 18001 for Health and Safety.
In the year 2008, the company launched Nestle Nesvita Pro-Heart Milk with Omega-3 in
Mumbai. Nestle Nesvita Pro-Heart is part of daily diet and has Omega-3 heart friendly nutrients
scientifically known to help manage cholestrol. As part of their ongoing dedication to offering
best in class nutrition products to Indian consumers, the company launched NESTLE NAN 3, a
follow-up formula for older infants. During the year, MAGGI PICHKOO Tomato Ketchup was
launched in a unique easy to handle day pack to drive affordability, taste and convenience for a
larger number of consumers.

Nestle India-

Nestle India is a subsidiary of Nestle the 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 Mega in 1961, Nestlé’s regular and substantial investments
established that it was here to stay. In 1967, Nestlé set up its next factory at Chiliad (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, Nestle commissioned two factories in Goa at Panda
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 Vesey, Switzerland and its first
product was “Farina Lacteal Nestle, an infant cereal specially formulated by Henri.

Nestle to provide and improve infant nutrition. From its first historic merger with the Anglo-
Swiss Condensed Milk Company in 1905, 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.

Nestle’s trademark of birds in a nest, derived from Henri Nestle’s personal coat of arms, evokes
the values upon which he founded his Company such as the values of security, maternity and
affection, nature and nourishment, family and tradition. Today, it is not only the central element

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of Nestlé’s corporate identity but serves to define the Company’s products, responsibilities,
business practices, ethics and goals.

In 2004 Nestle had around 247000 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 and 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.

Nestle’ Brands-

i. Milk Products and Nutrition:

 NESTLÉ EVERYDAY Dairy Whitener

 NESTLÉ EVERYDAY Slim

 NESTLÉ EVERYDAY Ghee

 NESTLÉ MILKMADE

 NESTLÉ Fresh ‘n’ Natural Dahi

 NESTLÉ Fresh ‘n’ Natural Slim Dahi

 NESTLÉ Jeera Raita

 NESTLÉ MILKMADE Fruit yoghurt

 NESTLÉ Milk

 NESTLÉ Slim Milk

ii. Beverage:

 NESCAFÉ CLASSIC

 NESCAFÉ SUNRISE

 NESTLÉ MILO

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  NESCAFÉ 3 IN 1

 NESCAFÉ Koolerz
iii. Prepared Dishes and Cooking Aids:

 MAGGI 2-Minute Noodles

 MAGGI Vegetable Atta Noodles

 MAGGI Dal Atta Noodles

 MAGGI Rice Noodles Mania

 MAGGI Sauces

 MAGGI Pizza Mazza

 MAGGI Healthy Soups

 MAGGI Healthy Soups- Sanjeevn

 MAGGI Cubes
iv. Chocolates and 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 Powermint

 NESTLÉ Eclairs

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CADBURY-

Cadbury is one of the world’s biggest

confectionery company holds number
one or two positions in the 50 largest
global confectionery markets. They
create chocolate, gum and candy
brands. There are nearly 50,000
employees in over 60 countries and sell
their products in markets everywhere
around the world.

Cadbury Dairy Milk chocolate was first

introduced in 1831. It became the market leader when it launched and started to sell chocolates.
It is still the top selling chocolate brand in the country. Cadbury Mega Brand’s family product
today has an international retail value approaching US $1billion. It is an international brand.
Cadbury Dairy Milk carries the same distinctive image all over the world nearly 175 years.
Wherever we buy a bar of Cadbury Dairy Milk the pack design will be exactly the same, only the
language will be different. The famous slogan “glass and a half of full cream milk in every half
pound” with the picture of milk pouring into the chocolate bar, is one of the all-time greats of
British advertising.

Business Operations: John Cadbury was the founder of the Cadbury chocolate. He opened a
shop in Birmingham, England and started to selling tea and cocoa in 1824. In 1831, he started
manufacturing drinking chocolate and cocoa. In 2003, Adams Confectionery was acquired and
through its number 1 brands including Trident and Halls. They became the leading worldwide
confectionery company and the world’s number 2 in chewing gum.

The Cadburys Inc has provided us a broader view of the chocolate category. The Cadbury
chocolate is able to share with their market insights based on the unparalleled breadth of
chocolate experience.

Cadbury has grown from strength to strength with new technologies being introduced to make
the Cadbury confectionery business one of the most efficient in the world. The merge in 1969
with the Schweppes and the subsequent development of the business have led to the Cadbury
Schweppes to take the lead in the both confectionery and the soft drink market in United
Kingdom and becoming a major force in the international market. Today Cadbury Schweppes
manufactures its products in 60 countries.

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The Cadbury story is a fascinating story of a family business that grew in one the biggest, most
lowed chocolate brand in the world. A story that you will remember as the story of ‘ The Real
Taste of Life’.

Cadburys success lies in their management .They use different type of management in order to
get best out of their labor and achieve goals successfully. As per Christopher and Sumantra,
“Todays operating environment in many worldwide businesses demands more than efficient
central management and flexible operations”. Cadburys organizational style lies between
hierarchical and flat structure but more of democratic .They does not have many layers in flat
structure.So decision making is very fast and clear. In hierarchical ,decisions are made from top
and passed on to the lower staff.According to cadburys,” instructions from manager are passed
on to the clerical support assistants”.

Company Overview Of Cadbury India-

Cadbury is a British multinational confectionary brand owned by Mondelez International.

Cadbury India has a majority share in the market. Cadbury India is regarded as the „gold
standard for other chocolate companies in India. Cadbury has a great branding strategy. It offers
chocolates to all ranges of age and income. While it has Oreo and Cadbury Dairy milk for the
younger generation, it also has Bourneville for the taste of dark chocolates and elder generation.
It has chocolates which are cheap i.e. Cadbury Dairy Milk and 5 star while it also has premium
chocolates worth i.e. Silk and Bourneville. 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 Bade (Himachal Pradesh) and sales 0ffices (New Delhi,
Mumbai, Kolkata 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. Cadbury brand share in the world! Their flagship brand 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 Bournvita- 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 in

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to 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 No.1 Confectionery Company.

Cadbury World Wide-

Cadbury is CADBURY WORLD WIDE the world's largest confectionery company and have
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, Trevor, Dentyne, Bubblicious and Bassett – are enjoyed in
almost every country around the world. We employ around 60,000 people. 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 programmed of
organic and acquisition led growth.

Concentrating on their core brands in beverages and confectionery since the1980s, they have
strengthened their portfolio through almost fifty acquisitions, including brand icons such as
Mott's, Canada Dry, Halls, Trident, Dentyne, Bubblicious, Trevor, Bassett, Dr Pepper, 7 Up and
Snapple. It employs 60,000 people in over 200 countries-

o World’s No. 1 Confectionery company

o World's No. 2 Gums company
o World's No 3 Beverage company

Cadbury Brands:

i. Chocolates

 Dairy Milk

 5 Star

 Perk

27 | P a g e
  Celebration

 Eclairs

 Gems

ii. Snacks

 Bytes

iii. Beverages

 Bournvita

iv. Candy

 Halls

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 CHAPTER-4

SPECIFIC INFORMATION OF THE INDUSTRY

NESTLÉ– A company built on brands

The Nestlé brand portfolio covers practically all food and beverage categories: milk and dairy
products, nutrition (infant, healthcare, performance and weight management), ice cream,
breakfast cereals, coffee and beverages, culinary products (prepared dishes, cooking aids, sauces
etc.), chocolate and confectionery, petcare, bottled water.

Many brands have category leadership, both globally and in local markets. Many have existed
for several decades. Some, like S.Pellegrino – the mineral water from Italy – and Nestlé Moça in
Brazil, are well over 100 years old.

The best-known global brands include Nescafé, Nestea, Maggi,

Buitoni, Purina and of course Nestlé itself. Other brands also sell

in many countries – for example, Milo, Nesquik, Nespresso, Kit Kat,

Kit Kat is the single largest chocolate
Smarties, Polo, Friskies, Perrier and Vittel. brand in Japan. In the UK, its country of
origin, it sells around three million units
The total number of brands – including local brands – reaches into
each day.
several thousands.

Affordable products

For lower-income consumers in many countries, Nestlé is

marketing a range of products at affordable prices. Although
low in cost, they provide a balanced diet by compensating for
local dietary deficiencies, and combine good taste with
convenience and relevant nutrition.

The Nestlé Company is build on the foundation of very strong brands.

Some are global, others are regional, and many are local to a specific country.

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 Contributing to nutrition, health and
wellness:

Many Nestlé products are naturally

beneficial from a nutritional point of view.
They include breakfast cereals, milk and
dairy products and bottled waters, all of
which are also excellent carriers of Branded
Active Benefits. But what about ice cream?
What about chocolate and confectionery?
In a balanced diet, these enjoyable
and sometimes indulgent products definitely
have a role to play. We should all make sure
we have plenty of healthy exercise, but then
a modest amount of “mainly-for-pleasure“
foods can also be part of Good Food, Good
Life.
That said, we are applying our
nutritional expertise to these products as
well. For example, Dreyer’s Slow Churned
and Häagen-Dazs Light ice creams use
proprietary technology to deliver the same,
or even better taste than regular ice cream,
but with half the fat and a third fewer
calories.

In confectionery, we have introduced

many sugar-free products, including Polo, as
well as lower sugar content in products such
as Kit Kat Light.

The over-riding factor is not to

sacrifice taste. But whenever there is an
opportunity, we find solutions that also
contribute to nutrition, health and wellness.

In the ice cream category, we have applied our research and

technological expertise to make products that have significantly fewer
calories and less fat, yet still with the same great taste.

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Ensuring quality and food safety-
With every bite or sip of a Nestlé product, we have to ensure the highest levels of quality and
safety. This happens millions of times a day. It’s a heavy responsibility. We have to assure the
highest possible standards all along the supply chain – from raw materials via manufacturing,
packaging and distribution, to the point of consumption.
Every Nestlé factory has a laboratory that systematically analyses raw materials and ingredients.
Nestlé products are checked on the production line and in their finished state to ensure that they
meet our own strict standards, as well as national and international regulations. The quality
assurance laboratories at our Nestlé Research Center in Lausanne, Switzerland are constantly
broadening their knowledge and know-how in microbiology, food safety, nutrients, additives,
contaminants and packaging. They share this information with our factories around the world.

Wherever, whenever, however-

We sell our products in all four corners of the world at millions of different points of sale. These
include big retail superstores, supermarkets and chain stores. But they also include small family-
run neighborhood shops, stalls in markets, vending machines, mobile vendors and even door-to-
door sales of chilled products in special cooler bags.
People can buy Nestlé products in schools, offices, hotels and airports. In ice-cream parlours and
fast food outlets. On planes, trains and boats. In veterinary practices, service stations and fitness
centres.
Different formats, in all shapes and sizes, meet the needs of consumers whenever and however
they want to consume a Nestlé product.

The Changing Consumer-

World demographics will carry on changing. Other geographic, economic and social factors will
all affect our diets and eating habits. In this changing world, Nestlé will continue to put priority
on nutrition, health and wellness, and apply its science-based research to develop food and
beverage products that improve the quality of living at every stage of life.
It’s not enough to meet existing consumer needs. To stay in tune with developments, we have to
be ahead of the game, fully aware of trends, and ready to meet consumer needs that haven’t yet
fully emerged.

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Cadbury- (Specific information of the industry)

July 28 is the National Milk Chocolate Day and we all know what the
best chocolate in the world is?.... Cadbury's of course!
The Irish and British communities in the US are still mourning the loss of authentic Cadbury's
chocolate after it was banned in the US in 2014, following a lawsuit from American
confectionery giant Hershey's but we just have to hope that we receive a nice care package in
time. Thinking wistfully of Flake bars, Creme Eggs and squares of Dairy Milk bars, we took a
look at the history of the Cadbury’s chocolate empire:

Here are top 10 unique and specific information about Cadbury:

1. There are 350 million bars of Dairy Milk chocolate sold every year. That’s nearly a million a
day.

2. Cadbury’s created the first heart-

shaped chocolate box. Richard Cadbury,
the son of the Founder, John Cadbury,
came up with the idea for St. Valenrine’s
in 1861.

3. People love Crunchies! In fact so

much so that Cadbury produces 1,200
Crunchies per minutes … that’s 1 million
Crunchies per day!

4. The chocolatiers once owned the color purple. Well, their own particular shade of purple
(Pantone 2685c) famously used on the Dairy Milk packaging. Competitors Nestlé took them to
court over it saying colors could not be protected as a trademark. However, they lost the four-
year court battle. Eventually, Judge Colin Birss stated that the color had been synonymous with

32 | P a g e
the Birmingham-based chocolate for more than 90 years. Sadly, in 2013, they finally lost the
rights to the shade after Nestlé appealed the ruling.

5. Cadbury's was established in Birmingham in England 1824, by John Cadbury who sold tea,
coffee, and drinking chocolate.

6. Cadbury's made some of the first milk chocolate in the world. In 1857 a Swiss manufacturer,
Daniel Peter added milk to the recipe … and Dairy Milk was born! Cadbury’s milk chocolate
finally hit the shelves in 1897.

7. Cadbury is a fair trade product. They were certified back in 2008 and have increased the
amount of fair trade cocoa sourced in West Africa.

8. Cadbury were the official cocoa and chocolate

makers for Queen Victoria. John Cadbury and his
brother were given the first Royal Warrant by Her
Majesty in 1854.

9. Cadbury is the second largest sweet (candy) and

chocolate company in the world. The employ 70,000
people in 50 countries.

10. During the World War II, Cadbury's was forced to

remove Dairy Milk from shelves, as the government
banned manufacturers from using fresh milk. Cadbury's
produced ration chocolate using dried skimmed milk
chocolate.

Cadbury- Unique Advertisement:

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. Cadbury Dairy Milk has been the market leader in the
chocolate category for years. And has participated and been a part of every Indian's moments of
happiness, joy and celebration. Today, Cadbury Dairy Milk alone holds 30% value share of the
Indian chocolate market. In the early 90's, chocolates were seen as 'meant for kids', usually a
reward or a bribe for children. In the Mid 90's the category was re-defined by the very popular
`Real Taste of Life' campaign, shifting the focus from `just for kids' to the `kid in all of us'. It
appealed to the child in every adult. And Cadbury Dairy Milk became the perfect expression of
'spontaneity' and 'shared good feelings'.

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The 'Real Taste of Life' campaign had many memorable executions, which people still fondly
remember. However, the one with the "girl dancing on the cricket field" has remained etched in
everyone's memory, as
the most spontaneous &
un-inhibited expression
of happiness. This
campaign went on to be
awarded 'The Campaign
of the Century', in India
at the Abby (Ad Club,
Mumbai) awards.

In the late 90's, to further expand the category, the focus shifted towards widening chocolate
consumption amongst the masses, through the 'Khanewalon Ko Khane Ka Bahana Chahiye'
campaign. This campaign built social acceptance for chocolate consumption amongst adults, by
showcasing collective and shared moments.

More recently, the 'Kuch Meetha Ho Jaaye'

campaign associated Cadbury Dairy Milk with
celebratory occasions and the phrase "Pappu Pass
Ho Gaya" became part of street language. It has
been adopted by consumers and today is used
extensively to express joy in a moment of
achievement/success.

The interactive campaign for "Pappu Pass Ho Gaya" bagged a Bronze Lion at the prestigious
Cannes Advertising Festival 2006 for 'Best use of internet and new media'. The idea involved a
tie-up with Reliance India Mobile service and allowed students to check their exam results using
their mobile service and encouraged those
who passed their examinations to celebrate
with Cadbury Dairy Milk.

The 'Pappu Pass Ho Gaya' campaign also went

on to win Silver for The Best Integrated
Marketing Campaign and Gold in the
Consumer Products category at the EFFIES
2006 (global benchmark for effective
advertising campaigns) awards.

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 CHAPTER-5

OBJECTIVES

The purpose of this report is to evaluate Nestle Company industry based on the case study and
comprehend how the company develops strategic intent for their business organizations
following the analysis of external and internal business environments. I will analyze the strategic
management process as firm used to achieve strategic competitiveness and earn above-average
returns. I will discuss the strategy formulation that includes business-level strategy and
corporate-level strategy.
This project is based on the comparative study of consumer preference towards Nestle and
Cadbury chocolates. Objectives of the study are:

1. To know the consumers view towards the chocolates.

2. To measure the awareness about the Nestle & Cadbury products.

3. To know which category of chocolate is most preferred.

4. To study on various parameters on which the consumer purchases the chocolates.

5. To study about the purchasing pattern of Cadbury products.

6. To identify which brand of chocolates is more by the consumer.

7. To know the Consumer satisfaction levels regarding the Cadbury products.

It also aims to identify market place opportunities and threats in the external environment and to
decide how to use their resources, capabilities and core competencies in the firm’s internal
environment to pursue opportunities and overcome threats. In order to strengthen this assignment
about Nestle, there are several methods of gathering data has been conducted, such as PEST
analysis, Porter’s 5 forces model, value chain analysis and SWOT analysis. By the end of this
assignment, future strategy will be mentioned as well as my recommendations about Nestle that
will fit into strategic orientation in order to perform better in their business world. And continue
to develop and implement its learning approach as the chosen large company by using different
strategies.

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 CHAPTER-6

RESEARCH METHODOLOGY

Research methodology in a way is a written game plan for conducting research. Research
methodology has many dimensions. It includes not only the research methods but also considers
the logic behind the methods used in the context of the study and complains why only a
particular method of technique has been used. It also helps to understand the assumption
underlying various techniques and the criteria by which they can decide that certain technique
will be applicable to certain problems and other will not. Therefore in order to solve a research
problem, it is necessary to design a research methodology for the problem as the some may differ
from problem to problem. This chapter focuses on the various techniques, methods and
assumptions used in this study. It sheds light on the research problem, objectives of the study,
and also its limitations. The later part of the chapter explains the manner, in which the data is
collected, classified, tabulated, analyzed and interrupted so as to each to conclusive results.

Research is a logical and systematic search for new and useful information on a particular topic.
Research is a process used to collect information and data for the purpose of making business
decisions. The methodology may include publication research, interviews, surveys and other
research techniques, and could include both present and historical information.

Research Methodology is a way to find out the result of a given problem on a specific matter or
problem that is also referred as research problem. In Methodology, researcher uses different
criteria for solving/searching the given research problem. Different sources use different type of
methods for solving the problem. If we think about the word “Methodology”, it is the way of
searching or solving the research problem.

Importance of the research methodology-

 This study will help us to know the customer preference towards the chocolates.

 This study is important to understand the changing taste of the consumers.

36 | P a g e
  This study helps to understand the need and their demand in the market.

 It helps to improve the sales with the help of survey.

 It is important to understand the choice of consumers towards chocolates.

Scope of study- In this research investigation was conducted to determine the position of
consuming habits towards Cadbury Chocolate. The aspects looked into the preference of
chocolate. The scope of the study to analyze the consumer perception of Cadbury chocolate.

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 Lucknow Area only. There are 2
sources of data i.e.

A) Primary Data:

The data, which are collected for the first time, directly from the respondents to the base of
knowledge & belief of the research, are called primary data. The normal procedure is to
interview some people individually or in a group to get a sense of how people feel about the
topic. So far as this research is concerned, primary data is the main source of information
provided by the respondents.

B) Secondary Data:

When the data is collected and compiled in the in a published nature it is called Secondary data.
So far as this research is concerned internet, many brochures and magazines have been referred
too.

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Data Collection:

A) Sampling Design
It is true that it is very difficult to do research with whole universe. As we know that it is not
feasible to go with population survey because of the numerous Doctors and their scattered
location. So for this purpose sample size has to be determined well in advanced and selection
of the sample also has to be scientific so that it represents the whole universe. So far as this
research is concerned, the sample size is 50.

B) Instrument

Taking into consideration research instrument selected by me is questionnaire because it gives

more flexibility in terms of data and it has been asked to the responder personally and has an
idea of getting an important unknown data that can be collected through their behavior.

C)Mode of Data Collection:

Data collection mode is personal visit and filling up of the questionnaire:

Sample Universe Lucknow Area

Sampling Technique Stratified Random Sampling

Sample Size 50

A Structured Formatted
Research Instrument
Questionnaire

Research Period 20 Days

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Sampling Design

For this project work random sampling method is used:-

 Sampling size- This means no. of respondent considered for collecting data. The size of
the sample decided for this project is 50 respondents.

 Sample Type- According to the analysis it is concluded that I have surveyed 50

respondents out of which 9, 18, 17, 6 belongs to age group of 0-10, 10-20, 20-30,
above30 respectively.

 Sample Unit- Subject under observation on which information is collected:- Local

Citizen – 5years ≤ Citizen ≥ 30years.

Hypothesis-

• Ho= Various factors (image of product, paying capacity, price of product,

packaging of product brand awareness, influence of advertisement) effect the
consumer buying behavior for milk chocolates bar.

• H1= NO effect of various factors (image of product, paying capacity, price of

product, packaging of product, brand awareness, influence of advertisement) on
consumer purchase in milk chocolate bars.

Statistical & Analytical Tools:

Group Correlation:- T- Test

Likert Scale-

Analysis, Let us take the hypothesis as:-

H0 = There is correlation between various influencing factors like price, taste,
packaging, brand name etc. on buying behavior of consumers for chocolate.

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 H1 = There is no correlation between various factors like price, taste, packaging, brand
name etc on buying behavior of consumers for chocolate.

CADBU- NESTLE
X
Dx RY
Y Dy
fdy fdx-
+1 -1 f
f 2 dy dy

8 4
+2 (16) (-8) 16 32 64 8
PRICE

19 16 48
+1 (19) (-16) 48 48 3
TASTE

3 1 9
0 (0) (0) 0 0 0
PACKAGING

-1 10 (10)` 18 -18 18 3
7
BRAND NAME (-7)

3 4
-2 (-6) (8) 9 -18 36 2
OTHER

f 40 35 100 44 166 16

fdx 40 -35 5

f2dx 5 40 0 35 5 5
40 0 35

fdxdy 22 0 -6 16

Coefficient of Correlation-

N∑fdxdy − ∑fdx∑fdy
𝑟=
√N∑fdx2 (∑fdx)2 √N∑fdy2 (∑fdy)2

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 100x16−(44)(5)
𝑟=
√100x75−(05)2 √100x66−(44)2

1600−220
𝑟 = 146.6x149.62

1380
𝑟 = 10470.3 = +0.132

Hence it has been proved that there is a correlation between various factors and
buying behavior of consumer.

For Cadbury-

Let us take the hypothesis that customer 60% of consumers consumes chocolate more than
once a week

(x)2 =(X –
Frequency X X)2

More than 5x5 25 5.76

one per day
Daily one 9x4 36 73.96

3-4 per week 16x3 48 424.36

Weekly 3x2 6 457.96

Rarely 2x1 2 654.16

TOTAL 132 1607.2

x1 = 27.4

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 √∑ 𝑥 2
𝑠= n−1

s = √1607.2 = 20.5

│𝑥̅ − µ│
t=
𝑠
√𝑛

│27.4−21│√5
= 20.5

= 6.4/ 20.05x √5

t cal = 0.715

v = n-1

= 5-1

v=4

t table 0.05 = 4.604

so table t > table calculated

Hence hypothesis is accepted. This proves that 60% of consumer consumes more than one
chocolate of Cadbury per week.

For Nestle-
Let us take the hypothesis that customer 60% of consumers consumes chocolate
more than once a week.

Frequency X (x)2 = (X - X)2

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 More than one per
day 4x5 20 10.24
Daily one
6x4 32 51.84
3-4 per week
11x3 33 262.44
Weekly
3x2 6 116.64
Rarely
1x1 1 249.64
TOTAL
84 690.8

Hence hypothesis is accepted. This proves that 60% of consumer consumes more than
one chocolate of Nestle per week.

Let us take the hypothesis that there is association between change in prices of chocolate
and buying behavior of consumers for chocolates.

OBSERVED

PRICE INFLUENCE ON CHOCOLATE PURCHASE

Chocolate
High High Avg. Average Average Low Low
Brands

Cadbury 5 9 11 8 7

Nestle 5 8 9 7 6

Total 10 17 20 15 13

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EXPECTED

PRICE INFLUENCE ON CHOCOLATE PURCHASE

CTV Brands High High Avg. Average Average Low Low

Cadbury 5.2 9.2 10.8 7.6 7.2

Nestle 4.5 8.05 9.45 6.65 6.3

Total 10 17 20 14 14

Observed Value Expected value (𝐎 − 𝐄)𝟐 (𝐎 − 𝐄)𝟐/E

5 5.2 0.01 0.01

5 4.5 0.25 0.06

9 9.2 0.04 0.004

8 8.05 0.025 0.003

11 10.8 0.04 0.004

9 9.45 0.2025 0.02

8 7.6 0.16 0.02

7 6.65 0.1225 0.02

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 7 7.2 0.04 0.01

6 6.3 0.09 0.014

By applying Likert Scale:

Cadbury Nestle

Fully Satisfied 11 x 5 = 55 10 x 5 =50

Satisfied 13 x 4 = 52 11 x 4 = 44

Neutral 8 x 3 = 24 6 x 3 = 18

Dissatisfied 5 x 2 = 10 5 x 2 = 10

Fully Dissatisfied 3x1=3 3x1=3

144 125

χ2 Calculated = 0.437

V = (r-1) (c-1) = (5-1) (3-1) = 8

For V = 8 χ2 0.05 table value = 15.58

So as per the scale obtained the ranking of various brands of chocolate is as under:

= Rank 1

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 = Rank 2

Result:-

The study of consumer is buying behavior in chocolates states between the two brands i.e.
Cadbury & Nestle. The brand at first place is Cadbury and the last is Nestle. Between these
two Cadbury is having the largest market share

i.e. 40% and Nestle 35%. In order to we find that-

 The buying behavior of consumer for different brands of milk chocolate bars is
effected by various factors like price, taste, packaging, brand etc. as shown in
Analysis and Interpretation part, in the form of group correlation.

 With the help of t-test it has also been proved that more than 60% of consumers consume
milk chocolate bars more than once in a week

 If there will be change in price level of milk chocolate bars, then it will affect the buying
behavior of consumers and this finding has been proved with the help of Chi Square Test
χ2 .

 The most important factor which consumers consider while purchasing any milk
chocolate bars is Taste of that chocolate. They give preference to other factors also, but
most important thing is taste.

 The buying behavior of consumers is also affected by the different type of

advertisements. And the most influencing media is electronic media, and from reference
group friends are at most influencing position.

 Quality is the most important factor which consumers consider while switching over to
any other brand of milk chocolate bars.

Consumers are more attracted towards the foreign brands like Cadbury and Nestle and demand
that more number of foreign milk chocolate bars should be available in the market, like some

46 | P a g e
milk chocolate bars brands of Swiss and French chocolates. As this thing shows that consumer of
are more satisfied with the foreign brands and hence demand more of it.

One another finding of the research is that consumers of milk chocolate bars are quite hesitant
towards the use of unfamiliar brands, whose advertisement they do not see on different type
medias.

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 CHAPTER - 7

PROBLEMS AND LIMITATIONS

Problems:
The preparation of project report, quantifies work performed and completed in measurable terms.
It compares this with an established baseline to see if the project is on track or; if adjustments
have to be made if the project is behind its schedule. It keeps everyone on the same page and
manages each other’s expectations.

Some problems faced while the preparation of project report is:

 To keep an updated flow of information in relation to the project’s data accuracy,

 To immediately address issues and concerns that may come up at any point of the
project’s implementation or duration,

 To document reasons for changes and adjustments made to the original plan for the
project,

 To monitor the direction of project report towards appropriate objective,

 To serve as a basis for decision-making and addressing problems,

 To keep track the performance and contributions, and

 To act as a uniform procedure for communicating to the respondent to cooperate.

Project reports are most efficient when they follow a standard form with predefined fields that
need to be presents with updated data of analysis. Doing so will provide consistency and
predictability of the information the examiner will receive about the status of the project.

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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:

1. 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.

2. 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.

3. People were hesitant to disclose the true facts.

The chance of biased response can’t be eliminated though all necessary steps were taken to avid
the same.

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

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 CHAPTER – 8

FINDINGS, ANALYSIS AND INTERPRETATION

Findings:
1. The overall data across the background characteristic categories show that the preference
for Cadbury chocolate and milk products is better than Nestle.

2. Most respondents would purchase both Chocolate and Milk products of Cadbury for its
Taste and that of Nestle for its price.

3. It can be seen that more percentage of respondents has seen the advertisement of both
Cadbury and Nestle products.

4. Both companies have been using the promotion media to enhance the reach of their
message to the target audience.

5. The overall effectiveness of the Cadbury products has been rated higher than that of
Nestle products.

6. It is observed that for Chocolate and Milk products of Cadbury as well as Nestle, most of
the respondents take festive season or mood and Word of mouth communication
respectively as more important factors affecting their buying individually. Whereas
packaging as a factor affects the decisions for both the products in Cadbury.

7. It can be seen that across all the predefined background characteristic categories, more
percentage of respondents are satisfied with the availability of quantities or Size of Milk
products and Chocolate of Cadbury as well as Nestle.

8. It can be observed that most percentage of respondents are satisfied by the packaging of
Chocolate and Milk products of both Cadbury as well as Nestle.

9. Most percentage of respondents believes that there is a difference in Milk products and
Chocolate available in India & Other Countries of Cadbury & Nestle.

10. Most of the respondents buy Chocolate and Milk products from Regular retail shops,
Medical stores and Super markets, whereas most of them do not buy from Special stores
like; Customs shop or a Dollar shop.

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 11. It is observed that Pastries seem to be the nearest substitute of the chocolate and milk
products as most percentage of respondents across all the categories shows the readiness
for the same.

12. Most percentage of respondents believes that there exists a significant price difference
between the products of Cadbury and Nestle and that Cadbury has more prices than
Nestle although it is not justified.

13. It is seen that most of the respondents believe that they have not been disappointed by
any brand of Cadbury or Nestle.

14. Respondents have not been found to attach much importance to the brand ambassadors of
these companies. However Cadbury does more advertising of its products and has an
advantage of brand ambassador over Nestle.

15. It is observed respondents strongly believe that chocolates and milk products increase
weight and are not sufficient to substitute normal food requirements in routine. However,
respondents disagree with the beliefs that chocolate and milk products lead to heart
disease and that they are not good for overall health.

16. Traditional sweets can and do easily override customer purchase of Chocolate and Milk
products.

17. It can be seen that most respondents would contact the dealer for resolving their
complaints for both the products.

18. Most of the respondents are unaware of the existence of a sound customer complaint
handling system in any of these companies.

19. Respondents across various background categories believe that Cadbury has a leading
advantage over Nestle for its products.

20. Most of the respondents are of the opinion that Nestle should improve its brand image,
launch new promotion schemes and improve quality to increase its market share. A
significant amount of respondents also give importance to concentration on distribution
and having better advertising appeal and message for the same.

21. Most of the respondents believe that Cadbury has been more successful in dealing with
the festival demand trends in India as compared to Nestle.

22. It is observed that according to most of the dealers, the demand for Cadbury products is
more among customers. On the other hand, dealers also prefer Cadbury products for their
family use.

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 23. It is seen that most percentage of dealers are satisfied with both Cadbury as well as Nestle
as far as the follow-up of the order is concerned.

24. It is observed that most percentage of dealers largely stock Cadbury chocolate and milk
product brands, whereas a very less number of dealers for chocolate and for milk
products keep the stock of both the brands.

25. It can be seen that according to most of the dealers, Cadbury does more advertisement of
its products and has more sales promotion schemes. Moreover dealers like Cadbury
schemes. As far as the flexibility of payment and credit is concerned, most of the dealers
believe that both companies are equally flexible.

26. It is observed from that the preference of respondents for the same is more in case of
Cadbury products as compared to that of Nestle.

27. It is observed that factor like; Taste, Brand image, Price, Emotion/attachment and New
variety of a particular brand have affect the purchase of Chocolate and Milk product of
Cadbury as well as Nestle and that the consideration of these factors by the respondents is
more evident in Cadbury products as compared to the Nestle.

28. Respondents generate the awareness from advertisement sources like Newspaper,
Magazine, Television, Hoardings and Internet for Chocolate and Milk product of
Cadbury as well as Nestle.

29. Respondents can and do differentiate between effective and non-effective advertisements
of Chocolate and Milk products of Cadbury and Nestle and that they consider Cadbury
advertisements more effective as compare to Nestle’s.

30. Window display or decoration, Festive season or mood, Packaging, Remembrance of

advertisement and Attractive name of a brand are the factor that affect respondents’
decision to buy Chocolate and Milk products of a particular company. Respondents also
seem to consider Cadbury’s position better with respect to these factors as compared to
Nestle’s.

31. Respondents are satisfied with the available quantities or size of Chocolate and Milk
products of Cadbury as well as Nestle. Additionally they seem to be more satisfied with
the available quantities of Cadbury than that of Nestle.

32. Respondents seem to be more satisfied with Cadbury packaging for Chocolate and Milk
products as compared to that of Nestle.

33. Respondents believe that Nestle products available in India are different from that
available in foreign countries.

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 34. Respondents believe that the Cadbury products are more easily available as compare to
Nestle products.

35. Respondent have experienced disappointment from the brands of Chocolates and Milk
products of Cadbury as well as Nestle, however this disappointment is less in case of
Cadbury as compared to that of Nestle.

36. Respondents are found inexperienced as far as the existence of sound customer complaint
handling system is concerned.

Some major findings:-

37. Majority of the respondents are from the age group of 18-25.

38. Majority of the respondents are male in our survey.

39. Majority of the respondents like chocolate very much.

40. Majority of the respondents prefer nuts.

41. Majority of the respondents said that the price of the product is standard.

42. Majority of the respondents said there is discount on chocolates.

43. Majority of the respondents purchase 3 chocolate bars in a week.

44. Majority of the respondents have tasted Chocolates silk.

45. Most of the respondents prefer chocolates when thinking Chocolates.

46. Majority of the respondents prefer tasty chocolates in Chocolates.

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Analysis and Interpretation:

Table 1: Age wise classification:

Data:-
Sr. Age No. of Percentage
No. Respondents (%)
1. Between 9 18%
5-10
2. Between 18 36%
10-20
3. Between 17 34%
20-30
4. Above 6 12%
30
Total 50 100%

Analysis:-

Age

12% 18% Between 0-10

Between 10-20
34% Between 20-30
36% Above 30

Table 2: Sex wise classification:

Data:-

Sr. No. No. of

Sex Percentage (%)
Respondents

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 1. Male 22 44%

2. Female 28 56%

Total 50 100%

Analysis:

Sex

Male
56% 44%
Female

Interpretation:

According to the above analysis it is concluded that I have surveyed 50 respondents out of which
22 are male and 28 are female.

Table 3: Leading Brands of Chocolate:

Data:-

Brands 1 2 3 4 Total

Nestle 24% 48% 18% 10% 100%

12 24 9 5 50

Cadbury 76% 16% 8% 0% 100%

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 38 8 4 0 50

Amul 0% 36% 56% 8% 100%

0 18 28 4 50

Parle 0% 0% 18% 82% 100%

0 0 9 41 50

Analysis:-

LEADING BRANDS
Nestle Cadbury Amul Parle

82%
76%

56%
48%
36%
24%
16% 18% 18%
8% 10% 8%
0% 0% 0% 0%

1 2 3 4

Interpretation:

1. 76% of the respondents say Cadbury is a 1st leading brand in the market.
2. 48% of the respondents say Nestle is a 2nd leading brand in the market.
3. 56% of the respondents say Amul is a 3rd leading brand in the market.
4. 82% of the respondents say Parle is a 4th leading brand in the market.

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Table 4: Brand Preference:

Data:-

Sr. No. of Percentage

Options
No. Respondents (%)

1 Cadbury 38 76%

2 Nestle 12 24%

Total 50 100%

Analysis:-

NESTLE-24%

CADBURY-
76%

Interpretation:
There are many brands available in the market. But the market leaders in India are Cadbury and
Nestle.
According to survey-
1. 76% of the respondents prefer Cadbury brand of chocolate.

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 2. 24% of the respondents prefer Cadbury brand of chocolate.

Table 5: Pack of Chocolate Preferred:

Data:-

Sr. No. of Percentage

Option
No. Respondents (%)

1 Small 13 26%

2 Big 19 38%

3 Family Pack 18 36%

Total 50 100%

Analysis:-

SIZE OF PACK

FAMILY PACK
36%
SMALL
26%
BIG
38%

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Interpretation:
1. The chocolate are available in the market in different packs like small, big and family
pack.
2. According to the survey, 38% of the respondents are buying big pack, 36%
of the respondents are buying family pack and 26% of the respondents are buying
small pack of chocolate.
So we came to know that the consumption of big pack is having boom in the market compare to
other pack.

Table 6: Frequency of Consumption:

Data:-

Sr. No. of Percentage

Options
No. Respondents (%)

1 Always 25 50%

When person is sad

2 4 8%
and depressed

When person is
3 11 22%
happy

Only on special
4 10 20%
occasions

Total 50 100%

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Analysis:-

Frequency of Consumption

50%

22%
20%

8%

Always When person is sad When I'm happy Only on special

occasions

Interpretation:
According to the above analysis it is concluded that –
1. 50% of the respondents eat chocolates always.
2. 22% of the respondents eat chocolates when they are happy.
3. 20% of the respondents eat chocolates only on special occasions.
4. 8% of the respondents eat chocolates when they are sad and depressed.

Table 7: Preference in Different Brands of Cadbury:

Data:-

Sr. No. of Percentage

Options
No. Respondents (%)

1 Dairy Milk 15 39%

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 2 5Star 6 16%

3 Perk 5 13%

4 Celebrations 8 21%

5 Temptation 4 11%

Total 38 100%

Analysis:-

Preference in Cadbury Chocolates

TEMPTATION
CELEBRATION
11%
21%

PERK
13% DAIRY MILK
39%
5 STAR
16%

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Interpretation:-
From the above analysis of given sample of 38 respondents who eat Cadbury chocolates it is
concluded that –
1. 39% of the respondents have preferred Dairy Milk Chocolate more.
2. 21% of the respondents have preferred Celebrations Chocolate more.
3. 16% of the respondents have preferred 5Star Chocolate more.
4. 13% of the respondents have preferred Perk Chocolate more.
5. 11% of the respondents have preferred Temptation Chocolate more.

Table 8: Preference in Different Brands of Nestle:

Data:-

Sr. No. of Percentage

Options
No. Respondents (%)

1 Kit Kat 3 25%

2 Munch 3 25%

3 Milky Bar 2 17%

4 Bar-One 2 17%

5 Milk Chocolate 2 16%

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 Total 12 100%

Analysis:-

Preference in Nestle Chocolates

MILK
KIT KAT CHOCOLATE
25% 16%
BAR-ONE
17%

MUNCH
25% MILKYBAR
17%

Interpretation:
From the above analysis of given sample of 12 respondents who eat Nestle chocolates it is
concluded that -
1. 25% of the respondents have preferred Kit Kat Chocolate more.
2. 25% of the respondents have preferred Munch Chocolate more.
3. 17% of the respondents have preferred Milky Bar Chocolate more.
4. 17% of the respondents have preferred Bar-One Chocolate more.
5. 16% of the respondents have preferred Milk Chocolate Chocolate more.

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Table 9: Variance in Purchase of Chocolates from different Shops:

Data:-

No. of Percentage
Sr. No. Sources
Respondents (%)

1 Departmental stores 10 20%

2 Super market 7 14%

3 Retail store 15 30%

4 Others 18 36%

Total 50 100%

Analysis:-

Different Shops to Purchase Chocolate

36%

30%

20%

14%

Depatmental Super Market Retail Store Other

Store

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Interpretation:-
According to the above analysis it is concluded that –
1. 36% of the respondents buy chocolates from other sources.
2. 30% of the respondents buy chocolates from retail store.

Table 10: Preference in Form of Chocolate:

Data:-

Sr. No. of Percentage

Option
No. Respondents (%)

1 Hard 3 6%

2 Nutties 11 22%

3 Crunchy 19 38%

4 Chew 17 34%

Total 50 100%

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Analysis:-

Form Of Chocolate

Chew
Crunchy 34%
38%

Nutties
22% Hard
6%

Interpretation:-
1. Every person has their own taste and preferences towards the eatable product in
chocolates.

2. There are four varieties available in the market among this 38% of the consumers like
crunchy chocolates, 34% of the consumers like chew chocolates, 22%of the consumers
like nutties chocolates & only 6% of the consumers like hard chocolates.

Table 11: Satisfaction With Cadbury Chocolates:

Data:-

For Cadbury Chocolates

Factors Satisfied Normal Not Satisfied Total

Flavor/taste 63% 37% 0% 100%

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 Price 32% 39% 29% 100%

Quality 82% 16% 2% 100%

Packaging 32% 58% 10% 100%

Shape 26% 42% 32% 100%

Quantity 37% 26% 37% 100%

Analysis:-

Satisfaction with Cadbury Chocolates

Satisfied Normal Not Satisfied

82%

63%
58%

42%
37% 39% 37% 37%
32% 32% 32%
29%
26% 26%

16%
10%

0% 2%

Flavor/Taste Price Quality Packaging Shape Quantity

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Interpretation:
According to the above analysis it is concluded that –
1. In flavor/taste, 63% are satisfied and 37% are normal.
2. In price, 32% are satisfied, 39% are normal and 39% are not satisfied.
3. In quality, 82% are satisfied, 16% are normal and 2% are not satisfied.
4. In packaging, 32% are satisfied, 58% are normal and 10% are not satisfied.
5. In shape, 26% are satisfied, 42% are normal and 32% are not satisfied.
6. In quantity, 37% are satisfied, 26% are normal and 37% are not satisfied.

Table 12: Satisfaction With Nestle Chocolates:

Data:-

For Nestle Chocolates

Factors Satisfied Normal Not Satisfied Total

Flavor/taste 83% 17% 0% 100%

Price 42% 25% 33% 100%

Quality 50% 50% 0% 100%

Packaging 0% 67% 33% 100%

Shape 8% 59% 33% 100%

Quantity 8% 42% 50% 100%

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Analysis:-

Satisfaction with Nestle Chocolates

Satisfied Normal Not Satisfied

83%

67%
59%
50% 50% 50%
42% 42%
33% 33% 33%
25%
17%
8% 8%
0% 0% 0%

Flavor/Taste Price Quality Packaging Shape Quantity

Interpretation:
According to the above analysis it is concluded that –
1. In flavor/taste, 83% are satisfied and 17% are normal.
2. In price, 42% are satisfied, 25% are normal and 33% are not satisfied.
3. In quality, 50% are satisfied and 50% are normal.
4. In packaging, 67% are normal and 33% are not satisfied.
5. In shape, 8% are satisfied, 59% are normal and 33% are not satisfied.
6. In quantity, 8% are satisfied, 42% are normal and 50% are not satisfied.

Table 13: If preferred brand is not available for repeat purchase:

Data:-

Sr. No. Option No. of Respondents Percentage (%)

1 Postpone your purchase 13 26%

2 Switch over to other brand 16 32%

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 Go to the other shop to search for
3 21 42%
your preferred brand

Total 50 100%

Analysis:-

Brand Loyalty

26%
42% Postpone your purchase

Switch over to other brand

32% Go to othter shop to search

for yoyur preference brand

Interpretation:
According to the above analysis it is concluded that-
1. 42% of the respondents go to other shop to search for their preferred brand.
2. 32% of the respondents postpone their purchase.
3. 24% of the respondents switch over other brand.

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Table 14: Personality like AMITABH BACHHAN or RANI MUKHERJI or PREITY
ZINTA influences on decision of buying a particular brand of chocolate :

Data:-

Sr. No. Options No. of Respondents Percentage (%)

1 Yes 20 40%

2 No 18 36%

3 Not completely 12 24%

Total 50

Analysis:-

Influence by Personality

24%

40%
Yes
No
Not completely

36%

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Interpretation:
According to the above analysis it is concluded that mostly consumers are
influenced by the Personality like Amitabh Bachhan or Rani Mukherji or Preity
Zinta for buying a particular brand of chocolate.
1. 40% of the respondents say yes.
2. 36% of the respondents say no.
3. 24% of the respondents say not completely.

Table 15: Factors affecting purchase:

Data:-

Sr. No. Factors No. of Respondents Percentage (%)

1 Advertisement 12 24%

Suggestion from friends and

2 7 14%
relatives

3 Attractive Display 7 14%

4 Brand Ambassadors 13 26%

5 Ingredients 11 22%

Total 50 100%

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Analysis:-

Factors Affecting Purchase

26%
24%
22%

14% 14%

Advertisement Suggestion from Attractive Display Brand Ingredients

friends and Ambassadors
relatives

Interpretation:-
According to the above analysis it is concluded that brand ambassadors is the best
measure to attract customers to purchase more. Its impact is much more than other
factors. While advertisement and ingredients also play a significant role in this
regard.
1. 26% of the respondents say that brand ambassadors affect their purchase.
2. 24% of the respondents say that advertisement affects their purchase.
3. 22% of the respondents say that ingredients of the chocolates affect their purchase

Table 16: Media of advertisement influence on purchase:

Data:-

Sr. No. Options No. of Respondents Percentage (%)

1 Television 27 54%

2 Magazines 5 10%

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 3 Free Samples 8 16%

4 Other 10 20%

Total 50 100%

Analysis:-

Media of Advertisement

54%

20%
16%

10%

Television Magazines Free Samples Other

Interpretation:-
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 50 respondents 27 are attracted through television
media, while magazines are the least attracting media
1. 54% of the respondents say television media of advertisement influence their purchase.
2. 20% of the respondents say other media of advertisement influence their purchase.
3. 16% of the respondents say free samples media of advertisement influence their purchase.
4. 10% of the respondents say magazines media of advertisement influence their purchase.

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Table 17: Reaction of Consumers if New Brand of Same Product Introduced in Market:

Data:-

Sr. No. Options No. of Respondents Percentage (%)

1 May consider 15 30%

2 No, I shall not 19 38%

3 Can’t say 16 32%

Total 50 100%

Analysis:-

Reaction On New Brand In Market

Can't say
No, I shall not 32%
38%

May consider
30%

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Interpretation:
According to the above analysis it is concluded that mostly consumers are addicted to
the same brand and they don't want to change the brand. Out of 50 respondents 19 are
not ready to try new brand at any cost.
1. 38% of the respondents say they don't want to change their brand at any cost.
2. 32% of the respondents can't say.
3. 30% of the respondents say, it may be considered.

Table 18: Reason to Retain the Same Brand for Purchasing Chocolates:

Data:-

Sr. No. Reasons Cadbury Nestle Total

1 Good Quality 11 2 13

2 Brand image 10 2 12

3 Packaging 2 1 3

4 Ingredients 7 5 12

5 Other 8 2 10

Total 38 12 50

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 Reason For Not Switching Over To Another
Cadbury Nestle

11
10

8
7

2 2 2 2
1

Good Quality Brand Image Packaging Ingredients Other

Interpretation:
All the consumers why they continue to buy the old brand gave various important reasons.
1. According to the above analysis it is concluded that 11 and 10 respondents
buy Cadbury chocolate because of good quality and brand image
respectively.
According to the above analysis it is concluded that 5 respondents buy Nestle chocolate because of
ingredients.

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 CHAPTER-9

S.W.O.T. ANALYSIS
(STRENGTHS, WEAKENESSES, OPPORTUNUTIES AND THREATS ANALYSIS)

A SWOT ANALYSIS DERIVED FROM THE DATA ANALYSIS AND

INTERPRETATION:

1. STRENGTHS

CADBURY NESTLE

1. Satisfied customers. 1. Available Assortment.

2. Preference for Cadbury chocolate 2. Distribution network.

and milk products is better than
Nestle.

3. Overall attractiveness of Cadbury 3. Packaging.

products. Being better able to reap
the benefits of the festive seasons
or mood.

4. Available assortment.

5. Improved packaging.

6. Effective brand ambassadors.

7. Overall more demand & Preference

among the dealers.

8. Strong follow-up of order system.

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 9. Effective advertisements.

10. Strong distribution network.

2. WEAKENESSES

CADBURY NESTLE

1. Disappointment of the customers at 1. Disappointment of the Customers at

times. times.

2. Packaging. 2. Ineffective advertisement and

use of brand ambassador.
3. Unawareness of the customers
about the existence of the customer 3. Less attractive window display
complaint handling system. or point of purchase.

4. Less attractive packaging.

5. Unawareness of the customers about

the existence of the customer
complaint handling system.

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 3. OPPORTUNITIES

CADBURY NESTLE

1. Developing better products. 1. Festive seasons and Cultural beliefs

and attitudes of people in India.
2. Expanding market by entering into
diverse areas in production line of 2. Use of non-conventional modes of
food and beverages like; soft drinks promotion or communication like e-
once again. communication through Internet.

3. Development of a sound customer 3. Scope of making advertisements

oriented complaint handling system. effective and interesting and using
effective brand ambassadors.

4. Developing better products.

5. Expanding market by entering into

diverse areas in production line of
food and beverages like; soft drinks.

6. Development of a sound customer

oriented complaint handling system.

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4. THREATS

CADBURY NESTLE

1. Competition from Nestle and other 1. Competition form the major giants
domestic and international players. like Cadbury and many others.

2. Competition from the other products 2. Competition from the other products
in the same category like; Pastries in the same category like; Pastries
and Sweets as well as other and Sweets as well as other
confectionaries. confectionaries.

3. Overall high preference of customers

for Cadbury products.

4. Strong brand image of Cadbury

products.

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 CHAPTER- 10

SUGGESTIONS AND 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. Many flavors like strawberry, orange, vanilla etc.

5. All varieties must be available in all areas.

6. Many others shaped chocolate can be introduced

7. The company should maintain the awareness about Cadbury Dairy Milk.

8. It reduces the cost and increases the offers.

9. The company Nestle has to review its process so as to gain brand loyalty of the
consumers.

10. The chocolates whose expiry dates goes off should be replaced at once and fresh stock
should be offered.

11. The chocolate companies should think on the matter that why the consumers switch over
to the other brands.

12. The chocolate companies should put more & more emphasis on the taste and quality of
the chocolate so as to gain brand loyalty.

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 13. As factors other than TV and Newspaper are considered less so companies should use the
print and electronic media for advertisement in large extent.

14. People are unsatisfied with the price and quantity of chocolate so companies should
concentrate in this regard also.

Chocolates products at Lucknow city are available in comparison to previous years, but still
there is requirement of development in Chocolate products. Due to increasing overall cost in
Chocolate Products everywhere, cost format should be made as such that it is affordable to each
and everyone in the society. In this we also found that if the demanded brand is not available, so
at that time the customers switch over the brand of the chocolate so, here the company should
build up the healthy distribution channel by which company can attract the customers and
company loose the fear from the market. Company should concentrate more on television for
advertisement, as mostly people get attracted through television only. For promotional offers,
company should go for free gifts rather than going for other ways. Nestle company should
concentrate on its packing as people are least satisfied with it while Cadbury should concentrate
on the shape of a chocolate. People are unsatisfied with the price and quantity of chocolate so
companies should concentrate in this regard also.

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 CHAPTER-11

CONCLUSION

On the basis of analysis, it is clear that the Customers’ taste & preference is increasing towards
the CADBURY branded products.

Due to sincerity & responsiveness, people have to become aware for quality. The study shows if
the best quality is provided by the companies then price is not important for customers. Company
should provide better quality of products.

Today, Nation is passing through a phase of rapid transformation. Two forces are most
responsible for these types of drastic changes; they are explosive growth of trade
& international competition & other force like technological change. This new era has witnessed
remarkable advancement in the availability of information & a number of large companies
operations in such market where the principal of natural selection lead to the “Survival of the
Fittest.” These two companies Cadbury and Nestle have to improve a lot by providing new range
of chocolates, attractive packing and better promotional offers during festive season to withstand
international companies.

A survey of t he people has been conducted to know t he liking pattern of t he two

products Cadbury and Nest le. It is observed t hat overall people like to eat Cadbury
brand rather t han Nest le. It is concluded that most ly p eople preferred Dairy Milk
of Cadbury due to it s Flavor/taste, quality and image and due to it s hard form.
Some people oft en like to have a Chocolate wit h good flavor, qualit y hard form.
Some people often like to have a chocolat e wit h good flavor, qualit y taste and
crunchiness.

It is t hus concluded from t he fact s collected t hat most ly people refer to buy big
pack of t heir favorit e chocolate, and somet imes some of t hem go for small and
family pack.

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The most important factor which is considered while purchasing any milk chocolate bars is Taste
of that chocolate. They give preference to other factors also, but most important thing is taste.
The buying behavior of consumers is also affected by the different type of advertisements. And
the most influencing media is electronic media i.e. TV, and from reference group friends are at
most influencing position. Quality is the most important factor which consumers consider while
switching over to any other brand of milk chocolate bars.

The buying behavior of consumer for different brands of milk chocolate bars is affected by
various factors like price, taste, packaging, brand etc.55% of the consumer check or consider
manufacturing and expiring date while buying any chocolate. 45% of consumers don’t go for
that. This should be a matter of concern. The conclusion is that the company should concentrate
more on television for advertisement, as mostly people get attracted through television only and
the company should concentrate on its price and taste as people are least satisfied with it these
factors.

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 CHAPTER - 12

BIBLIOGRAPHY
(REFERENCE TO WHILE PREPARING THE REPORT)

Websites:

 articles.economictimes.indiatimes.com -Collections –Cadbury Dairy Milk

 http://www.foodnavigator-asia.com/Markets/Indians-getting-sweet-on-chocolate-thanks-
to-Cadbury-revolution

 www.business-standard.com/cadbury-s-nestle-lose-market-share-to-imported- brands

 http://www.cadburyindia.com/

 http://www.nestle.com/

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

 http://www.google.com/

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

 http://www.packaging/

 http://www.chocolatereview.co.uk/

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

Books:

1. Marketing Management - Philip Kotler.

2. Research Methodology - C. R. Kothari.

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 CHAPTER – 13

APPENDIX

QUESTIONNAIRE:
(Please tick wherever necessary)

1. Personal Profile:

Name:

Address:

Age:

Between 0-10 Between10-20 Between 20-30 Above 30

Gender: Male Female

Educational Qualification:

Profession:

87 | P a g e
Tick into the circle of your preference option:-

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

Que4. Rank the sub-brands of chocolates according to your preference? (1 for most preferred)

Cadbury Nestle
Dairy Milk Kit Kat

5Star Munch

Perk Milky Bar

Celebrations Bar-One

Temptation Milk Chocolate

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Que5. How much importance do you give to the following factors when you purchase a
chocolate? (Tick in the desired column)

Factors Very Important Important Normal Least Important

Flavor/taste
Price
Quality
Packaging

Que6. Which form of a chocolate do you like?

Hard Nutties Crunchy Chew

Que7. What pack do you purchase?

Small Big Family Pack

Que8. Which promotional offers attract you most?

Free gifts Price Offer Any other: _______________

Que9.Which of these factors affects your purchase?

 Advertisement

 Suggestion from friends and relatives

 Attractive Display

 Doctors Advice

 Brand Ambassadors

 Ingredients

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 Que10. Which media of advertisement influence your purchase?

Television Newspapers Brochures Hoarding Display

Que11. 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

Que12. Do you feel that the product characteristics match with those mentioned in the
advertisement?

Yes No

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