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A Grand Project Report On


Good Food, Good Life SHREEJI DISTRIBUTORS At Junagadh Prepared by: Hitesh J. Vachhani (MBA-IV) Roll No. 82 Project Guide: Mr. Nailesh Limbasiya

R.K. College of Business Management (R.K.C.B.M.) Submitted to:

Saurashtra UniversityRajkot
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DECLARATION I, undersigned Mr. Hitesh Vachhani student of MBA semester IV from R.K.COLLEGE OF BUSINESS MANAGEMENT, RAJKOT, declare that I have prepared this project report on STUDY OF CONSUMER PREFERENCE TOWARDS CADBURY AND NESTLE CHOCOLATES, (Marketing-officer, Mr.Nilesh Sachaniya, Junagadh), and by Prof. Dr. N M Khandelwaal (Director) R. K. college of business management.

I also declare that this project report is my own original work and not copied from anywhere else.

Date: Place: Signature

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An Industrial, Business or service organization by taking up a project study is most important part of our M.B.A course & is must as per the syllabus prescribed by Saurashtra University. Our MBA course is of administrative and managerial activity of industrial, Business or service organization. The main objective of this project study is to help the student to develop ability of research of the products and practical technique to solve real life problem related to the products. According to the rules, I have taken my grand project report in SHREEJI DISTRIBUTORS at junagadh. Our gardeners and professors gives the knowledge and guidance of nestle to me. The grand project programmed for student of M.B.A Sam-iv training is near about two months. Theoretically knowledge and class room discussion is not that much sufficient for the student, but training give them practical and day to day working of Nestle In this grand project report I had tried to analyze the needs of the customers and suggest them the most suitable product solutions. As well as I also analyzed the brand awareness among the people.

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Every piece of hard work requires the combined efforts and talents of many people. An ambitious work of this kind, providing analytical review to the subject would have remained a concept rather than the finished product without cooperation of those who respondent to our request to contribute. However, I alone is responsible for any shortcomings remained in this report. I am very much graceful to our respected Prof. Dr. N.M. KHANDELWAAL(Director) RK College of Business Management who has enriched my knowledge and gave me a moral support to do this report. I am also highly thankful to him for showing the right path and encouraging me for the preparation of this report. I am very much thankful to Mr. Nilesh Sachaniya & Mr. Vipul Rancch for allowing me to take training in a reputed Nestle Distributor knows as SHREEJI DISTRIBUTORS.

I am very much thankful to Mr. Nailesh Limbasiya, (Lecturer of R.K. College of Business Management), the project work presented in this report is carried out under supervision and guidance of Mr. Nailesh Limbasiya. Last but not least, I am thankful to my entire staff member who have helped us directly or indirectly in preparing this report.

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Industry Overview

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History of chocolate: The origin of chocolate can be traced back to the ancient Maya and Aztec civilizations in Central America, who first enjoyed chocolati a much-prized spicy drink made from roasted cocoa beans. Throughout its history, whether as cocoa or drinking chocolate beverage or confectionary treat, chocolate has been a much sought after food. The Aztec empire Chocolate(in the form of a luxury drink) was consumed in large quantities by the aztecs: the drink was described as finely ground, soft, foamy, reddish, bitter with chilli water, aromatic flowers, vanilla and wild bee honey. The dry climate meant the Aztecs were unable to grow cocoa trees, and had to obtain supplies of cocoa beans from tribute or trade Don Cortes The Spanish invaded Mexico in the 16th century, by this time the Aztecs had created a powerful empire, and the Spanish armies conquered Mexico. Don Cortes was made captain general and governor of Mexico. When he returned to Spain in1528 he loaded his galleons with cocoa beans and equipment for making the chocolate drink. Soon chocolate became a fashionable drink enjoyed by the rich in Spain. Chocolate across Europe An Italian traveler, Francesco carletti, was the first to break the Spanish monopoly. He had visited Central America and seen how the Indians prepared the cocoa beans and how they made the drink, and by 1606 chocolate was well established in Italy.

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Drinking chocolate The secret of chocolate was taken to France in 1615, when Anne, daughter of Phillip 2 of Spain married king Louis 13 of France The French court enthusiastically adopted this new exotic drink, which was considered to have medicinal benefits as well as being a nourishing food. Gradually the custom of drinking chocolate spread across Europe, reaching England in the 1650s First chocolate for eating Up until this point all chocolate recipes were based on plain chocolate. It was an English doctor, sir Hanss Sloane, who- after traveling in south America- focused on cocoa and food values, bringing a milk chocolate recipe back to England. The original Cadbury milk chocolate was prepared to his recipe. History: The earliest record of chocolate was over fifteen hundred years ago in the central America rain forests, where the tropical mix of high rain fall combined with high year round temperatures and humidity provide the ideal climate for cultivation of the plant from which chocolate is derived, the cacao tree. Chocolate is made from the cocoa bean, found in pods growing from the trunk and lower branches of the cacao tree, Latin name theobroma cacao meaning food of the gods Cacao was corrupted into the more familiar cocoa by the early European explorers. The Maya brewed a spicy, bittersweet drink by roasting and pounding the seeds of the cacao tree with maize and capsicum peppers and letting the mixture ferment. This drink was reserved for use in ceremonies as well as for drinking by the wealthy and religious elite; they also ate cacao porridge. The Aztecs, like the Mayans, also enjoyed cacao as a beverage fermented from the raw beans, which again featured prominently in ritual and as a luxury available only to the very wealthy. The Aztecs called this drink xocolatl, the Spanish conquistadors found this almost 8 R. K. College of Business Management

impossible to pronounce and so corrupted it to the easier chocolat the English further changed this to chocolate. The Aztecs regarded chocolate as an aphrodisiac and their emperor, Montezuma reputedly drank it fifty times a day from a golden goblet and is quoted as saying of xocolatl: the divine drink, which builds up resistance and fights fatigue. A cup of this precious drink permits a man to walk for a whole day without food Chocolate in Europe Xocolatl! or chocolat or chocolate as it became known, was brought to Europe by Cortez, by this time the conquistadors had learned to make the drink more palatable to European tastes by mixing the ground roasted beans with sugar and vanilla ( a practice still continued today), thus offsetting the spicy bitterness of the brew the Aztecs drank. The first chocolate factories opened in Spain, where the dried fermented beans brought back from the new world by the Spanish treasure fleets were roasted and ground, and by the early 17th century chocolate powder from which the European version of the drink was made- was being exported to other parts of Europe. The Spanish kept the source of the drink- the beans- a secret for many years, so successfully in fact, that when English buccaneers boarded what they thought was a Spanish treasurer galleon in 1579, only to find it loaded with what appeared to be dried sheeps droppings, they burned the whole ship in frustration. If only they had known, chocolate was so expensive at that time, that it was worth its weight in silver ( if not gold), chocolate was treasure indeed ! Within a few years, the cocoa beverage made from the powder produced in Spain had become popular throughout Europe, in the Spanish Netherlands, Italy, France, Germany and in about 1520 it arrived in England. The first chocolate house in England opened in London in 1657 followed rapidly by many others. Like the already well established coffee houses, they were used as clubs where the wealthy and business community met to smoke a clay pipe of tobacco, conduct business and socialize over a cup of chocolate. 9 R. K. College of Business Management

Back to the Americas Events went full circle when English colonists carried chocolate (and coffee) with them to Englands colonies in north America. Destined to become the united states of America and Canada, they are now the worlds largest consumers by far of both chocolate and coffee, consuming over half of the words total production of chocolate alone. The Quakers The Quakers were, and still are, a pacifist religious sect, an offshoot of the puritans of English civil war and pilgrim fathers fame and a history of chocolate would not be complete without mentioning their part in it. Some of the most famous names in chocolate were Quakers, who for centuries held a virtual monopoly of chocolate making in the English speaking world fry, Cadbury and row tree are probably the best known. Its probably before the time of the English civil war between parliament and king Charles 1st that the Quakers who evolved from the puritans, first began their historic association with chocolate. Because of their pacifist religion, they were prohibited from many normal business activities, so as an industrious people with a strong belief in the work ethic (like the puritans), they involved themselves in food related businesses and did very well. Baking was a common occupation for them because bread was regarded as the biblical staff of life, and bakers in England were the first to add chocolate to cakes so it would be a natural progression for them to start making pure chocolate. They were also heavily involved in breakfast cereals but thats another story. What is certain is that the fry, row tree and Cadbury families in England among others, began chocolate making and in fact Joseph fry of fry &sons (founded 1728 in Bristol, England) is credited with producing and selling the worlds first chocolate bar. Frys have now all but disappeared (taken over by Cadbury) and row tree have merged Swiss company nestle, to form the largest chocolate manufacturer in the world. Cadbury have stayed with chocolate production and are now, if not quite the largest, probably one of the best-known chocolate makers in the world.

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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 1600s. Then in 1828 a Dutch chemist, Johannes van houten, invented a method of extracting the bitter tasting fat or cocoa butter from the roasted ground beans, his aim was to make the drink smoother and more palatable, however he unknowingly paved the way for solid chocolate as we know it. Chocolate as we know it today first appeared in 1847 when fry & sons of Bristol, England mixed sugar with cocoa powder and cocoa butter (made by the van houten process) to produce the first solid chocolate bar then in1875 a Swiss manufacturer, Daniel peters, found a way to combine (some would say improve, some would say ruin) cocoa powder and cocoa butter with sugar and dried milk powder to produce the first milk chocolate.

CHOCOLATE PRODUCTION 11 R. K. College of Business Management

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. TheVarieties 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. The Harvest Immediately after harvesting, the fruit is treated to prevent it from rotting. At fermentation sites either in the plantation or at, collecting points, the fruit is opened. Fermentation The fermentation process is decisive in the production of high quality raw cocoa. The technique varies depending on the growing region. Drying After fermentation, the raw cocoa still contains far too much water; in fact about 60%. Most of this has to be removed. What could be more natural than to spread the beans out to dry on the sun-soaked ground or on mats? After a week or so, all but a small percentage of the water has evaporated. 12 R. K. College of Business Management

Cleaning Before the real processing begins, the raw cocoa is thoroughly cleaned by passing through sieves, and by brushing. Finally, the last vestiges of wood, jute fibres, sand and even the finest dust are extracted by powerful vacuum equipment. Roasting The subsequent roasting process is primarily designed to develop the aroma. The entire roasting process, during which the air in the nearly 10 feet high furnaces reaches a temperature of 130 C, is carried out automatically. Crushing and shelling The roasted beans are now broken into medium sized pieces in the crushing machine. Blending Before grinding, the crushed beans are weighed and blended according to special recipes. The secret of every chocolate factory lies in the special mixing ratios, which it has developed for different types of cocoa. Grinding The crushed cocoa beans, which are still fairly coarse are now pre-ground by special milling equipment and then fed on to rollers where they are ground into a fine paste. The heat generated by the resulting pressure and friction causes the cocoa butter (approximately 50% of the bean) contained in the beans to melt, producing a thick, liquid mixture. This is dark brown in color 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. 13 R. K. College of Business Management

CocoaButter 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 flavouring - 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 14 R. K. College of Business Management

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 "conch a", meaning a shell) is the name given to the troughs in which 100 to 1000 kilograms of chocolate paste at a time can be heated up to 80 C and, while being constantly stirred, is given a velvet smoothness by the addition of certain amounts of cocoa butter. A kind of aeration of the liquid chocolate paste then takes place in the conches: its bitter taste gradually disappears and the flavor is fully developed. The chocolate no longer seems sandy, but dissolves meltingly on the tongue. It has attained the outstanding purity, which gives it its reputation.


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Chocolate consumption in India is extremely low. Per capita consumption is around 160 gms in the urban areas, compared to 8-10kg in the developed countries. In rural areas, it is even lower. Chocolates in India are consumed as indulgence and not as a snack food. A strong volume growth was witnessed in the early 90s 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.

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Overview of Organizations

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

Nestle India- Presence Across India

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

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Nestle Story
Nestl was founded in 1867 on the shores of Lake Geneva in Vevey, Switzerland and its first product was Farine Lacte Nestl, an infant cereal specially formulated by Henri Nestl to provide and improve infant nutrition. From its first historic merger with the Anglo-Swiss Condensed Milk Company in 1905, Nestl has grown to become the worlds largest and most diversified food Company, and is about twice the size of its nearest competitor in the food and beverage sector. Nestls trademark of birds in a nest, derived from Henri Nestls personal coat of arms, evokes the values upon which he founded his Company. Namely, the values of security, maternity and affection, nature and nourishment, family and tradition. Today, it is not only the central element of Nestls corporate identity but serves to define the Companys products, responsibilities, business practices, ethics and goals. In 2004, Nestl had around 247,000 employees worldwide, operated 500 factories in approx. 100 countries and offered over 8,000 products to millions of consumers universally. The Companys transparent business practices, pioneering environment policy and respect for the fundamental values of different cultures have earned it an enviable place in the countries it operates in. Nestls activities contribute to and nurture the sustainable economic development of people, communities and nations. Above all, Nestl is dedicated to bringing the joy of Good Food, Good Life to people throughout their lives, throughout the world.

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Nestle Brands
Milk Products & Nutrition Beverages Prepared Dishes and Cooking Aids Chocolates & Confectionary MILK PRODUCTS AND NUTRITION:


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are crisp wafer fingers covered with choco layer. NESTL KIT KAT has a unique finger format with a breaking' ritual attached to it. NESTL KIT KAT is one of the most successful brands in the world and every year over 12 billion NESTL KIT KAT fingers are consumed around the globe. NESTLE MUNCH

NESTL MUNCH is wafer layer covered with delicious choco layer. NESTL MUNCH is so crisp, light and irresistible that you just can't stop Munching.' NESTL MUNCH is the largest selling SKU in the category! NESTLE MILKY BAR:

NESTL MILKYBAR is a delicious milky treat, which kids love. Relaunched in January 2006 with a Calcium Rich recipe, NESTL MILKYBAR is a favorite with parents to treat their kids with. NESTLE BAR-ONE

is a luscious nougat and caramel with delicious choco layer. NESTL BAR-ONE constantly reminds you that it is Time for Action'.

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NESTLE Milk Chocolate:

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

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How Cadbury Chocolate is made

John Cadbury Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder John paste to the dark chocolate recipe of cocoa mass, cocoa butter and sugar. By today's standards this chocolate was not particularly good: it was coarse and dry and not sweet or milky enough for public tastes. There was a great deal of competition from continental manufacturers, not only the French,but also the Swiss, renowned for their milk chocolate. Led by George Cadbury Junior, the Bournville experts set out to meet the challenge. A considerable amount of time and money was spent on research and on new plant designed to produce the chocolate in larger quantities. A recipe was formulated incorporating fresh milk, and production processes were developed to produce a milk chocolate 'not merely as good as, but better than' the imported milk chocolate'. Four years of hard work were invested in the project and in 1905 what was to be Cadbury's top selling brand was launched. Three names were considered: Jersey, Highland Milk and Dairy Maid. Dairy Maid became Dairy Milk, and Cadbury's Dairy Milk, with its unique flavour and smooth creamy texture, was ready to challenge the Swiss domination of the milk chocolate market.

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

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Cadbury began its operations in 1948 by importing chocolates and then re-packing them before distribution in the Indian market. After 59 years of existence, it today has five company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). The corporate office is in Mumbai.

Currently Cadbury India operates in three sectors viz. Chocolate Confectionery, Milk Food Drinks and in the Candy category. In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk, clairs and Celebrations. Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world! Their flagship brand Cadbury Dairy Milk is considered the "gold standard" for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian consumer.

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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 into the growing bagged Snack Market, which has been dominated until now by Salted Bagged Snack Brands. Bytes was first launched in South India in 2003. Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over two decades, it has worked with the Kerala Agriculture University to undertake cocoa research and released clones, hybrids that improve the cocoa yield. Today, Cadbury is poised in its leap towards quantum growth and new categories of business, namely gums, mints, snacking and gifting. It is a part of the Cadbury Schweppes Group, world's No.1 Confectionery Company.

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Cadbury is the world's largest confectionery company and have a strong regional presence in beverages in the Americas and Australia. With origins stretching back over 200 years, today their products which include brands such as Cadbury, Schweppes, Halls, Trident, Dr Pepper, Snapple, Trebor, Dentyne, Bubblicious and Bassett - are enjoyed in almost every country around the world. We employ around 60,00 people. Their heritage starts back in 1783 when Jacob Schweppe perfected his process for manufacturing carbonated mineral water in Geneva, Switzerland. And in 1824 John Cadbury opened in Birmingham selling cocoa and chocolate. These two great household names merged in 1969 to form Cadbury Schweppes plc. Since then they have expanded their business throughout the world by a programme of organic and acquisition led growth. Concentrating on their core brands in beverages and confectionery since the 1980s, they have strengthened their portfolio through almost fifty acquisitions, including brand icons such as Mott's, Canada Dry, Halls, Trident, Dentyne, Bubblicious, Trebor, Bassett, Dr Pepper, 7 Up and Snapple. It employ 60,000 people in over 200 countries Worlds No 1 Confectionery company World's No 2 Gums company World's No 3 beverage company

Cadbury Brands:
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Snacks Beverages Candy SNACKS: Bytes BEVERAGES Bournvita CANDY Halls

CHOCOLATES Dairy Milk 5 Star Perk Celebrations Temptation Eclairs Gems


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The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K., but the journey with chocolate lovers in India began in 1948. The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens & adults. Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a delightful combination of milk chocolate and white chocolate. Giving consumers an exciting reason to keep coming back into the fun filled world of Cadbury. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market. 5 STAR

the second largest after Cadbury Dairy Milk with a market share of 14%, Cadbury 5 Star moves from strength to strength every year by increasing its user base. Launched in 1969 as a bar of chocolate that was hard outside with soft caramel nougat inside, Cadbury 5 Star has re-invented itself over the years to keep satisfying the consumers taste for a high quality & different chocolate eating experience. One of the key properties that Cadbury 5 Star was associated with was its classic Gold colour. And through the passage of time, this was one property that both, the brand and the consumer stuck to as a valuable association. More recently, to give consumers another reason to come into the Cadbury 5 Star fold, Cadbury 5 Star Crunchy was launched. The same delicious Cadbury 5 Star was now available with a dash of rice crispies.

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Cadbury launched Perk in 1996. With its light chocolate and wafer construct, Cadbury Perk targeted the casual snacking space that was dominated primarily by chips & wafers. With the rise of more value-for-money brands in the wafer chocolate segment, Cadbury Perk unveiled two new offerings - Perk XL and XXL. In 2004, with an added dose of 'Real Cadbury Dairy Milk' and an 'improved wafer', Perk became even more irresistible


Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai and dry- fruits during festive seasons.

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

Ever see people hide away their chocolate since they dont want to share it! If you have, then is its a likely range to of be a bar of Cadbury Temptations! in five Cadbury flavours. Research revealed a niche segment of chocoholics - those exposed to international possibly lovers. The Cadbury Temptations range is available in 5 delicious flavour variants - Roast Almond Coffee, Honey Apricot, Mint Crunch, Black Forest and Old 33 R. K. College of Business Management Temptations chocolates the a is and those of who at love a variety of of too chocolates high. but find price range international this chocolates segment Cadbury chocolate Temptations delicious premium chocolate



Jamaica. With its international quality chocolate Temptations soon became a popular brand for "chocoholics".

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1. Relevance of the Study This research is been conducted to survey the product performance and buying behavior of consumer in selection of chocolates. The relevance of the study is to survey the product performance and buying behavior of two famous brands of chocolates Nestle and Cadbury, which are consumed by people of all ages. During this research I have interacted with people of Junagadh City. This research is to know which particular brand of chocolate is most preferred by people of different age groups.

2. Research Problem Every research has their own problem and limitation but good researcher have to overcome that problem by their skill. In this research problem I would like to understand and analyze about the chocolates products available at Junagadh and collect the feedback from group of people and I wanted to know the developments made in direction of chocolates industry.

3. Objective of the study This project is based on the comparative study consumer behavior towards Nestle and Cadbury chocolates. Objectives of the study are: The other objective is to know about the customer satisfaction level associated with the product and the customer preference level. To increase customer satisfaction and recapture the market share by fulfilling the customer needs. To study the factors affecting the consumption pattern. 4. Research Design For any researcher the research methodology is the most important criteria to decide before the actual research process starts. 37 R. K. College of Business Management

There are many methods for conducting the research some of them are as under; a) Descriptive vs. Analytical b) Applied vs. Fundamental c) Quantitative vs. Qualitative d) Conceptual vs. Empirical e) Field setting or laboratory testing research The design of a research is a plan or a model that helps researcher to conduct a formal investigation and survey. It is an application of methods and procedures for acquiring the information needs for getting a desire out come. It decides the sources of data and methods for gathering data. A good design insures that the information obtained is relevant to the research question and that it was collected by objectives. Since, research design is simply the frame work or plan for a study. It is a blue print that of a house devised by an architect. My approach to research is descriptive and quite specific. Out of these all research methods the research method, which was most suitable to my research, was descriptive research because it provides me all the opportunities to cover the all the aspect that I require to conduct the research and get an appropriate out come. Descriptive Research: Descriptive research includes surveys and fact finding enquires of different kinds. The major purpose of descriptive research is description of the state of affairs as it exits at present. In social science and business research we often use the term Ex post facto research for descriptive research studies. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. 5. Scope of the Study: As learning is a human activity and is as natural, as breathing. Despite of the fact that learning is all pervasive in our lives, psychologists do not agree on how learning takes place. How individuals learn is a matter of interest to marketers. They want to teach consumers in their roles as their roles as consumers. They want consumers to learn about 38 R. K. College of Business Management

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 consumers needs, but the marketers 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 junagadh region 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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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 100. 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 have an idea of getting an important unknown data that can be collected through their behavior.


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






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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 selfadministered questionnaires. Hence, the chances of unbiased information are less. People were hesitant to disclose the true facts. The chance of biased response cant be eliminated though all necessary steps were taken to avoid the same.

DATA ANALYSIS 41 R. K. College of Business Management

Que1. Do you eat chocolate?






Anaylsis & interpretation: Chocolate is a product which is like by the all age group of people. Accourding to the survey 83% of people says yes they eat chocolate and 17% say no they are not eating chocolate. May be the reason behind that is they are not eating chocolate on daily or weakly basis or may be they are eating any other brand of chocolate. Que2. Which brand of chocolate do you prefer?

80 60 40 20 0

64 36



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Analysis & Interpretation: There are many brands available in the market. But the market leaders in India are basically two brands like Cadbury & Nestle. According to survey 64% of the market is captured by the Cadbury and only 36% of the market is covered by the Nestle. To capture the market the company should do more advertising and sales distribution. And also should maintain quality of the product compare to the competitors. Que3. Which sub-brand you have purchased?


43 R. K. College of Business Management

Analysis & Interpretation: In this survey nestle is having five sub-brands like kitkat, Munch, Milkybar, Barone,milk chocolates and their consumption are like kitkat 12% ,munch 20 ,milky bar 1% ,bare one 2% ,and milk chocolate 1%. And if we talk about Cadbury the sub-brand of the Cadbury is dairymilk, 5 star, perk, celebration and Temptation and their consumption are like dairymilk 40%, 5 star11%, perk9%, celebration1% and Temptation 3%. According to the survey the highest selling product is Cadbury. Que4. Rank the sub-brands of chocolates according to your preference? (1 for most preferred) NESTLE

11% 3%

3% 33%








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Analysis & Interpretation In this survey I found that the most selling product is Munch the sub-brand of Nestle the Munch has capture the 50% of the market as compared to the Cadbury product the highest selling product of Cadbury is Dairy milk which captured the market stake of 30% which is as compared to Much 20%less which is a good sigh for Nestle and the less consumption of the Nestle product is Milk bar & Milk Chocolate the market share is only 3% and in Cadbury less selling product are Celebration and Temptation the reason behind this is they are too Costly to consume. And it can only use occasionally.

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



2% 1%






96 100 80 60 40 20 0 VERY IMP. IMPORTANT NORMAL LEAST IMP. 1 3 0

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78 80 60 40 20 0 VERY IMP. IMPORTANT NORMAL LEAST IMP. 12 6 4


78 80 60 40 20 0 VERY IMP. IMPORT ANT N ORMAL LEAST IMP. 12 6 4

Analysis & Interpretaion: Whenever we are consuming any food product our main focus in on the quality and price in India there is more concentrating on the quality of product rather than other parameters of the product in this survey I found that the basic concentration of the consumer is on taste 88% says that they purchase if they like the taste of the product. 96% says if normal price would be there a taste is good than price dose not matter. 78% of the consumer says that if they are getting best quality product at nominal price than the packaging is least important.

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78% says that they are mainly seeing the quality of the product if the product is qualitative than they are ready to pay any price for that product. Que6. Which form of a chocolate do you like?

50 40 30 20 10 0 HARD CRUNCHY NUTTIES CHEW 29 18 6 47

Analysis & interpretation: Every person have there own taste and preferences towards the eatable product in chocolates there are four varieties available in the market among this 47% of the consumer like hard chocolates, 29% of the consumer like crunchy chocolates, 18% of the consumer like nutties chocolates & only 6% of the consumer like Chew chocolates.

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Que7. What pack do you purchase?


73 80 60 40 20 0 SMALL BIG FAMILY PACK 17


Analysis & Interpretation: The chocolates are available in the market in different packaging like small, big, & family pack, from the survey we can say that the consumption of the chocolates are more eaten by the teenage group so they more prefer the small packaging because of there availability in market is good and most important thing is its very much affordable. According to the survey 73% are using small pack, 17% are using big pack of the chocolates, 10% are consuming family pack because of there high price. So we can easily see that the consumption of small pack is having boom in the market compare to other packaging. Que8. Which promotional offers attract you most?







Analysis & Interpretation: 48 R. K. College of Business Management

To sell out the product there are many promotions activity conducted by the company to face the competition the offer give by the company are like free gift, price offer, or any other scheme. In this 12% are giving the free gift offer (scratch the card scheme), 84% are directly giving the price offer, and 4% giving the any other kind of scheme.s Que9.Which of these factors affects your purchase?


80 60 40 20 0


21 1 2 0 7





Analysis & Interpretation: There are many factors affecting at the time of purchase. So company is doing promotional activities to acquire the desired target of the product. Basically there are six main type of the promotional activities like 69% of the advertisement, 1% of the suggestions, 2% of the attractive display, 0%of the doctors advice, 21% of the companies are using Brand Ambassadors in there advertisement, 7% of the ingredients. So all this factors are affecting the purchase. Que10. Which media of advertisement influence your purchase?

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0% 23% 3% 67% 7%






Analysis & Interpretation: In todays competitive market advertisement is the main tool for selling the product because every single person is watching or reading the advertisement. So it become easy to make people aware about the product. So companies are using advertisement media like 67% of the television adds, 7% of the Hoardings, 3% of the advertisement given on local as well as national newspapers, & 23% are using display adds. Que11. If your preferred brand is not available for repeat purchases then what will you do?



49% 40%




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Analysis & Interpretation: Every person is having there own taste & preferences. Some consumer are compromising with there taste and preferences and some are not according to the survey 11% of the consumer are postponing the purchase of the product, 40 % of the consumer are switch over to any other product, & 49 % will search the product at any other place they dont compromise for the same.

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52 R. K. College of Business Management

From the one and half month experience of my research project with SHREEJI DISTRIBUTORS OF NESTLE AT JUNAGADH. I have come to know lot things and it has enhanced my knowledge to great extent. I found many things which are well executed by distributors. Here are some of the key findings given by me are purely based on my research. It doesnt have any kind of bias from my side. They are given as under. By doing the comparison of Nestle and Cadbury chocolates I have found that the preference of the chocolates more preferred by the consumer is Cadbury From the analysis I have found that nestle some brand has covered 50% of the market in one product (Munch) of the chocolates which is a very good sign for the company. Through the research I found that consumer is very conscious about the quality of the product in that matter they are not ready to compromise. And I found both company product are very qualitative. In some cases I found that if a product is not available in the market than some consumer would to switchover to another product or brand. So from these survey I have found that the consumption of the chocolates are more in children and teenage group though having any occasion or not having any occasion. The most selling product of both the company are in small size of chocolates and there market is 73% because its not much costlier. And also easily available & affordable.

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54 R. K. College of Business Management

SUGGESTIONS Chocolates products at Junagadh city are available in comparison to previous years, but still there is requirement of development in Chocolate products. SHREEJI DISTRIBUTERS is regarded to be the best service distributors according to Retailer. 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 I 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.

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Web sites: www.nestle

1. Marketing Management 2. Research Methodology C. R. Kothari Philip Kotler

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PERSONAL DETAILS Name: Address: Age: Between 0-10 Between 20-30 Gender: Phone / Mob. : Profession: Que1. Do you eat chocolate? Yes No Between10-20 Above 30

Que2. Which brand of chocolate do you prefer? Cadbury Nestle Que3. Which sub-brand you have purchased? Cadbury Dairy Milk 5Star Perk Celebrations Temptation Nestle Kit Kat Munch Milky Bar Bar-One Milk Chocolate

Que4. Rank the sub-brands of chocolates according to your preference? (1 for most preferred) Cadbury Nestle Dairy Milk 5Star Perk Celebrations Temptation Kit Kat Munch Milky Bar Bar-One 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 Flavor/taste Price Quality Packaging Que6. Which form of a chocolate do you like? Hard Crunchy Nutties Chew Very Important Important Normal Least Important

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

Que10. Which media of advertisement influence your purchase? Television Hoarding Newspapers Display Brochures

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

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