This project work, which is my first step in the field of professionalism, has been successfully accomplished only because of my timely support of wellwishers. I would like to pay my sincere regards and thanks to those, who directed me at every step in my project work. I would like to thank our respected director, Dr. J.K.Goyal, who allowed me to undertake this project and provided his valuable guidance in doing it. I extended my sincere thanks and gratitude towards Ms.Supriya Choudhary, internal faculty, RDIAS for her help and valuable support throughout the term of the project. It was learning experience to work under her guidelines. I would also like to thank the faculty members and staff members of RDIAS for their kind support and help during the project.





The Cadbury story goes back over more than a century and a half, when one man, a young Quaker named john Cadbury, opened a small business way back in 1824, laying the foundation of what was to become one of the world's largest producers of chocolate. By 1831 the business had changed from a grocery shop and John Cadbury had become a manufacturer of drinking chocolate and cocoa. This was the start of the Cadbury manufacturing business, as it is known today. Now the leader in the UK chocolate market, Cadbury Limited is the confectionery division of Cadbury Schweppes, a major force in the confectionery and soft drinks international market. Quality has been the focus of the Cadbury business from the very beginning as generations have worked to produce chocolate with that very special taste, smoothness and snap, so characteristic of Cadbury's chocolate. In 1831 a small factory was rented, an old malt house in Crooked Lane, Birmingham and John Cadbury became a manufacturer of drinking chocolate and cocoa, the real foundation of the Cadbury manufacturing business. The earliest cocoa bean products were 'balanced' by mixing the ground cocoa with potato starch and sago to absorb the excess cocoa butter plus other ingredients to give healthy properties to the

drinks. By 1842 John Cadbury was selling sixteen sorts of drinking chocolate and eleven cocoas. The earliest preserved price list shows drinking chocolate in cakes and powder with names such as Churchman's chocolate, Spanish chocolate, and Fine Brown chocolate with cocoa in powder, flakes and cocoa nibs including granulated cocoa, Iceland Moss, Pearl and Homeopathic cocoas. By the late 1870s the flourishing Cadbury business had outgrown the Bridge Street factory. The workforce had risen to 200 and after 32 years at Bridge Street, in 1878 the Cadbury brothers started their search for a new site. Rather than take a factory in the recognized industrial quarter of Birmingham, the brothers decided to go to the country. "If," they said, "the country is a good place to live in and play in, why not to work in?" They realized that food should be made in clean, healthy surroundings. Also they Knew that space would be needed for future expansion and to create better working conditions as looking after the welfare of employees was an important consideration for the brothers. On June 1878 the ideal site was found - the Bourn brook Estate, fourteen and a half acres of land between the villages of Stirchley and King's Norton, about four miles south of the center of Birmingham.

1866- The Cadbury brothers introduce a new cocoa process to produce a much more palatable cocoa essence - the forerunner of the cocoa we know today. The plentiful supply of cocoa butter remaining after the cocoa is pressed makes it possible to produce a wide variety of new kinds of eating chocolate.

1897-Cadbury manufactures its first milk chocolate. 1905- Cadbury Dairy Milk is introduced with a new recipe using fresh milk. 1915- Cadbury Milk Tray is introduced. 1920- Cadbury Flake is introduced. 1923- Cream filled eggs, the forerunner of Cadbury Crème Eggs, are launched in the UK . Mid-1920's -Cadbury Dairy Milk gains its status as the brand leader in the UK, a position that it has enjoyed ever since. 1928- Fruit & Nut is introduced as a variation of Dairy Milk. Cadbury introduce the "glass and a half" advertising slogan. 1929- Cadbury Crunchie is launched. 1938- Cadbury Roses are launched. 1958- Cadbury Picnic is launched. 1971- Launch of Cadbury Crème Egg, as we know it today. 1976- Cadbury Caramel is launched. 1987- Cadbury Twirl is launched.

SUPERIOR SHAREHOLDER VALUE At Cadbury India. competitors and shareowners. COMPANY PROFILE THE COMPANY Cadbury limited is a wholly owned subsidiary of Cadbury Schweppes. 80% of employees own share through various share ownership/ share save schemes.2000. This increase in value of the company is not only .Cadbury Snowflake is launched. customers. In support of this. aims to be clearly the best and been seen to be clearly best by the consumer. Cadbury maximize the value of the company for our shareholders. Birmingham NUMBER OF EMPLOYEES 4000 employees MISSION Cadbury Schweppes governing objective is to maximize returns to shareholders. Its head office is located in bourn Ville. we strive to ensure that everything we do as individuals and as a business is in line with our governing objective .

Business Information Warehousing (BW) as a Data Warehousing tool and Lotus Notes as a corporate collaborative package.beneficial to the shareholders. R/3 is used as a “better practice implementation” tool to bring in uniformity and standardization of practices within the company. This is a part of . sales. With implementation of SAP R/3 as an on-line. integrated transaction system all up-to-date information on stocks. A Wide Area Network of Leased Lines connects 34 sites across the country. INFORMATION TECHNOLOGY At Cadbury India we believe that effective communication and availability of information 'at the right time and the right place' is critical for an edge in business. Sales Regional offices. costs & financial data is available any time across the locations. factories. We believe that the only way to achieve this goal is by constantly improving the way we manage business and by sharpening the corporate culture. an effective IT infrastructure. but can also bring more reward and satisfaction to the employees involved in the task. We are also the proud recipients of SAP Star Installation Award 2001 for innovative use of BW in sales analysis. In order to achieve this we realized the importance of and have in place. Reliability. SAP India awarded us the SAP Star Customer Award in 1998 for successful implementation of SAP R/3 and for the invaluable support extended to SAP and the SAP user community. We have implemented SAP R/3 as an Enterprise Resource Planning tool. depots and cocoa operation office. These include HO. scalability and security of Network and hive are one of the initial implementers of SAP R/3 and the first implementer of BW in the country.

integrated transaction system all up-to-date information on stocks. costs & financial data is available any time across the locations. With implementation of SAP R/3 as an on-line. costs & financial data is available any time across Notes to reduce time on routine administration tasks and improve processes. sales. . We use various workflow applications and databases in Lotus the proud recipients of SAP Star Installation Award 2001 for innovative use of BW in sales analysis. BW utility is being extended to other functions now. user friendly SIS. sturdy Data Center set up maintained by IBM Global Services Pvt Ltd with whom we have an IT Strategic Outsourcing arrangement IT as "Partners for Growth" aims to-: Remain competitive in the fast changing environment. With BW we have empowered the sales team with flexible. We are also the proud recipients of SAP Star Installation Award 2001 for innovative use of BW in sales analysis. integrated transaction system all up-to-date information on stocks. R/3 is used as a “better practice implementation” tool to bring in uniformity and standardization of practices within the company. All these applications are well supported with a scalable. This is a part of Global initiative of Cadbury Schweppes Plc (the Parent Company). This also brings in IT Culture through usage of Information Systems in different business applications. With implementation of SAP R/3 as an on-line.Global initiative of Cadbury Schweppes (the Parent Company) uptime are the basic needs for such business critical application We are one of the initial implementers of SAP R/3 and the first implementer of BW in the country. SAP India awarded us the SAP Star Customer Award in 1998 for successful implementation of SAP R/3 and for the invaluable support extended to SAP and the SAP user community. sales.

Cadbury's Éclairs was launched in 1972. at the then princely sum of 0. It was a strategy that introduced consumers to a variety of tastes and product forms leading to a rapid increase in chocolate consumption. Nut Butterscotch. Improve process efficiency. 5 Star and Gems.Tiffin’s. Explore newer avenues for business growth.Incorporate best practices in the business processes. Cadbury India has stayed ahead thanks to its constant marketing initiatives. The '60s was a decade which saw the launch of brands that are etched in the hearts of generations of Indians . It continues to be one of the biggest . Increase speed of response to business processes. Achieve flexibility & scalability in systems to keep pace with changing environments. that have at all points in time understood the needs of and opportunities in a changing nation. BRAND BUILDING Since its inception.25p and was an instant hit. Caramels. Crackle.

TRADE MARKETING The Cadbury Sales and Distribution network directly services over 3. This decade experienced a continuous growth in volumes as Cadbury launched a flurry of brands with different pack sizes. Cadbury bought Induri Diary farm in Pune in 1964. Gems. In 1989. Confectionery .brands in the Cadbury portfolio and offers the lowest price point at which consumers can experience the real taste of chocolate. we began operations in our newest and most modern plant at Malanpur.5 Lakh dealers across the country. Cadbury invested in technology and made an impact through innovative packaging. Today. a major investment program resulted in the installation of modern moulding. Today. Nutties. the Induri Factory manufactures intermediate products like milk crumb and a range of finished chocolates. Perk and Picnic. once a week. Equipped with state-of-the-art technology and backed by constant investment. 5 Star. crumb and chocolate making facilities. The facto employs about 750 people and houses the R&D and engineering development facilities of the company. this unit manufactures Éclairs. the factory has grown manifold and manufactures a range of products that include Cadbury Dairy Milk. In a move towards backward integration. Gems and Bourn vita. In the years that followed. Recently. PRODUCTION Cadbury India's first manufacturing facility was set up at Thane (Mamba) in 1966.

Vending machines: First introduced in the country by Cadbury. it's unique design offers visibility. these impressive coin operated machines can be seen dispensing chocolates in high traffic areas from the World Trade Center at Mumbai to New Delhi railway station. today it is the standard dispenser design for all chocolate manufacturers. the visicooler with a glass front not only maintains eye contact with the consumer. it can meet the needs of any outlet. . has become so popular. Amusement Parks: Cadbury's presence in the premier amusement parks such as Esselworld and Appu Ghar adds to the magic of chocolates by 'coming alive' for the consumer. purple salesperson for Cadbury is found in almost any shop stocking our chocolates. ease of vending and protection from the elements. In high throughput outlets. Jars: Outlets like the neighborhood Pan shop have just enough places for simple dispensers like jars. but offers perfect chocolates throughout summer as well. Visicoolers : Come summer. Available in various sizes. demands eye catching.purchase being impulse led. we have invested in an array of inputs to the trade: The Sheet Metal Dispenser: This ubiquitous. visibility for chocolates drop as they disappear into the refrigerator. This 'first' from Cadbury. on-the-cashcounter visibility in as many of these outlets as possible. While being on the cash counter. Attractive jars / merchandising units in such shops ensure places of pride for Cadbury. In order to best meet our dealer's display and vending needs.

MFV demands that every action / decision of the company translates into an increase in the value for shareholders.MANAGING FOR VALUE Managing For Value (MFV). 2. We call these the Leadership Imperatives and we recruit. motivated. they are closely related and at times they overlap. mature and global in their outlook.Leadership Capability To improve our performance and achieve our goals we need managers who are accountable. Aggressiveness and Adaptability are seen to be fundamental strengths across the organization if we are to increase shareholder value in an increasingly competitive world. We measures our progress by three sets of financial targets: Shareholder Value. Accountability.Raising Financial Performance. It involves individuals understanding what creates the most value in their area of responsibility and working towards achieving it. 3.Value Based Management This is the part of MFV that deals with strategic operational decisionmaking. by improving the way we manage business and honing our corporate culture. It is about raising our financial performance. Earnings Growth and Cash flow. . adaptable. appraise and develop our managers against them. It has five elements to it. which are not independent. motivating. is a worldwide mission for Cadbury Schweppes and is about long-term sustainable change. assertive. 4.CADBURY’S MISSION 1.

8%. Performance: Cadbury reported sales of Rs6. South and East are large markets for food drinks. Nestle has emerged as a significant competitor with about 24% market share.7% over the previous year as against 12% target set by the company at the beginning of the year. Parley’s. but continues to dominate the chocolate market with about 65% market share. The sales increase was largely driven by launch of . White drinks account for almost two-thirds of the 90.5. In the white drink segment. The MNC’s such as Joyco and Perfetti have aggressively expanded their presence in the country in the last few years. Volumes grew by 5. MARKET SHARE Competition: Cadbury has been losing market share. SmithKline’s Horlicks is the leader. The sugar confectionery segment is largely dominated by the unorganized players. Parry's. accounting for the largest proportion of all India sales. besides a host of unorganized sector players. relies on aligning the interests of employees as closely as possible with the interests of our shareholders. Cadbury has a 15% market share in the malted food drink segment. Malted food drinks category consists of white drinks and brown drinks. Leading national players in this category include Nutrine. Maltova and Viva. Value growth was also marginally lower at 9. Joyco India and Perfetti. Nestle (Milo) and GCMMF (Nutramul). Market leader SmithKline also owns other brands such as Boost. Ravalgaon. Other national players in segment include co-operative owned Amul and Campco. Cadbury’s Bournvita is the leader in the brown drink (cocoa based) segment. This involves incentives linked to results and share ownership.000-ton market. Other significant players are Heinz (Complan).26bn in 2001.Rewards The success of MFV. Candico. much lower than the targeted 10% volume growth.

the company would then operate as a 100% subsidiary of the parent. Outlook: The Cadbury management has been unable to achieve the volume growth targets set during the last two years. 4. In the malted food drinks category too. Create robust and sustainable regional positions in our core categories of confectionery and beverages through organic growth. after the open offer for the balance public holding is completed in 2000. CADBURY’S STRATEGY 1. despite the company’s efforts and investments in repositioning the brand. Adopting value-based management for major strategic and operational decisions and business systems. The company remains dependent on a single category – Chocolates to drive growth. Creating an outstanding leadership capability within our management. . acquisition and disposal. Bournvita market share has remained stagnant at 14-15% in the last few years.6% to 17. 3. Sharpening our company culture to reflect accountability. aggressiveness and adaptability.affordable small pack variants for all the leading brands and focused innovative advertising campaigns for flagship brand Dairy Milk. setting stretching financial objectives. With the company planning to delist from Indian bourses. 5. Operating profit margin improved from 16. Our Managing for Value process incorporates: 2.5% aided by lower material costs. Net profit rose by 10% to Rs574mn. Sugar confectionery ventures have not yielded desired results. We will achieve this by Managing for Value.

6. Striving for international quality in our products and processes. productivity and innovative utilization of assets. 5. Sustained growth of our market share through aggressive product development. Cadbury India has defined its vision as "Life full of Cadbury. Perk 4. BRANDS The various products produced by Cadbury are: 1. 2. Cadbury’s dairy milk 2. Broadening our consumer appeal and extending our reach to newer markets. aligning our management rewards structure with the interests of our shareowners. Fruit and nuts 5. Five star 3. Focusing on cost competitiveness. 3. Cadbury full of life" THIS MEANS 1. In India. Energizing and developing our people. 4. Marble .

Chocolate truffle HISTORY OF NESTLE The history of Nestlé began in Switzerland in 1867 when Henri Nestlé. family and nourishment. . which symbolizes security. Henri used his surname. still plays a central role in Nestlé’s profile. the pharmacist. in both the company name and the logotype.6. launched his product Farine Lactée Nestlé. a nutritious gruel for children. which means ‘little nest’. The nest.

1929. mineral water and other food products.Nestlé merges with Peter-Cailler-Kohler Chocolates Suisse’s S.Since it began over 130 years ago. Nestlé has continued to expand its product portfolio to include pet foods. pharmaceutical products and cosmetics too. 1962. 1898-Nestlé purchases its first factory outside of Switzerland – Viking Melk factory in Norway. Switzerland. frozen products. Nestlé’s success with product innovations and business acquisitions has turned it into the largest Food Company in the world. 1974. 1938. 1905.A.Nestlé merges with Anglo-Swiss Condensed Milk Company.Henri Nestlé founded the company in Vevey.A. with the brand Maggi. all with one thing in common: the high quality for which Nestlé has become renowned throughout the world. cereals. 1947.Nestlé purchases Findus.Nestlé merges with Alimentana S. Nestlé markets a great number of products. Beginning in the 70s. soups. yogurts. the Nestlé family has grown to include chocolates.Nestlé becomes a significant shareholder in the Cosmetics Company L’Oreal. coffee. Today. . 1867. As the years have passed.Nestlé launches Nescafe – the world’s first instant coffee.

Nestlé purchases Spillers pet foods business.Nestlé purchases Alcon.Nestlé merges with Ralston Purina. which produces ready-made frozen meals. 2000. the premier pet food Company in North America. manufacturer of eye care products and kits. La Cocinera.1977.Nestlé purchases the confectionary company Rowntree Mackintosh and the pasta company Buitoni-Perugina. COMPANY PROFILE BUSINESS PRINCIPLE Since Henri Nestlé developed the first milk food for infants in 1867.Nestlé purchases the Food Company Carnation. 1992. and with unique expertise in the dry dog food area.Nestlé purchases the mineral water Company Perrier. 1 9 9 9 . and saved the life of a neighbor’s child. snacks and refrigerated products under the La Cocinera and Fricongel brand names.Nestlé sells the Findus brand in all countries except for Italy and Switzerland.Nestlé acquires Preparados y Congelados Alimenticios LA. 1998. 1985. 1988. the Nestlé Company has . 2001. pizzas.

While our Nestlé Corporate Business Principles were first published as a single document in 1998.aimed to build a business based on sound human values and principles. Third. and reflects the basic ideas of fairness. All nine of the Global Compact Principles are now reflected in the Nestlé Corporate Business Principles. which needed to be added. Second. our basic foundation is unchanged from the time of the origins of our Company. They have been translated into over 40 languages and given to all our management worldwide. including The Nestlé Water Policy and the Nestlé Corporate Governance Principles. . under the leadership of Secretary-General Kofi Annan. honesty. the United Nations Global Compact has been created. We are now issuing this update of our Nestlé Corporate Business Principles for three basic reasons: First. most of the individual business principles contained in the document had existed for many years in individual form as a result of Nestlé’s focus on principle-based business practices. Nestlé has pledged support of the Global Compact and a reference to it has been included in our revised text. which has provided us useful feedback about their application. we have had three years of experience in using the Nestlé Corporate Business Principles as a management tool. While our Nestlé Corporate Business Principles will continue to evolve and adapt to a changing world. additional relevant areas have been developed.

Customers expect us to keep this promise every time. not only with all our employees. compliance with all relevant laws and regulations is a must and is not negotiable. that it complies with all regulations and that it meets high standards of quality. A Nestlé brand name on a product is a promise to the customer that it is safe to consume. but also with anyone in the public who is interested in understanding the Principles on which this Company is based. Every product on the shelf. Quality is our most successful product. They also make higher profits. It is the key to our success. today and tomorrow. millions of people all over the world show their confidence in us by choosing Nestlé products. Companies with huge quality standards make fewer mistakes. The effort is worth it. Under no circumstances will we compromise on the safety of a product and every effort must be made to avoid hazards to health. Everyday. Given the growing public interest in the area of corporate social responsibility. we openly share these Principles. QUALITY 1. Likewise. every service and every customer contact helps to shape this image. equipment and instruments are made available to ensure safety and conformity of Nestlé products at all times. waste less time and money and are more productive.and a general concern for people. This confidence is based on our quality image and a reputation for high standards that has been built up over many years. People.SUCCESS IS BUILT ON QUALITY Quality is the cornerstone of our success. .

appearance and price when they make their choice. by simultaneous improvement of quality and reduction cost. Customers are central to our business and we must always respect their needs and preferences. supermarkets. If they are not satisfied with a Nestlé product. Our task is to understand what customers want and respond to their expectations rapidly and effectively. Nestlé shares society’s concern for the environment and is committed to environmentally sound business practices throughout the world. The pursuit of highest quality at any price is no guarantee for success. All customers. hotels. 3. . therefore. however. Lasting competitive advantage is gained from a balanced search for optimal value to customers. correct information and timely delivery. They have very different requirements. nor is a single-minded cost-cutting approach. they will switch to another brand. Our goal. is to provide superior value in every product category and market sector in which we compete. Trade customers expect excellent service. When offering quality to customers we also mean environmental quality. expect value for their money – good quality at a reasonable price.QUALITY IS A COMPETITIVE ADVANTAGE We live in a competitive world and must never forget that our customers have a choice. We serve various groups of consumers and there is demand for products at different levels of perceived quality and price. Consumers consider taste. shopkeepers and the final consumers.THE CUSTOMER COMES FIRST We want to win and keep customers: distributors.2.

This implies a thorough knowledge of the products and services we offer. Our business products. Further directions are given through instructions. We can achieve competitive advantage through Quality. Quality units at different levels of the organization provide specific support. procedures and systems are needed to make Quality. Each and every Nestlé employee must do his best to provide quality products and services. such as raw material producers. Quality departments monitor operations against agreed standards and must intervene in case of non-conformity. 4. assume guardianship and audit the system. the mandatory standards and the recommended tools for implementation are laid down in the Nestlé Quality System. promote quality awareness.Success can never be taken for granted.QUALITY IS A JOINT EFFORT Operating companies are fully responsible for maintaining agreed quality standards. so as to meet our requirements consistently. norms and guidelines. contract manufacturers and distributors are expected to share our concern for Quality. but also Marketing. often specific to a product. We must watch and learn from our competitors. we must improve our own performance. so are involved and dedicated people. Quality policy and principles. which is applicable throughout the group. packaging suppliers. They too must set up an adequate quality system. . E v e r y f u n c t io n a n d d e p a r t m e n t in t h e c o m p a n y a s w e l l as our business partners must share the quality efforts. Not only Production units.PEOPLE MAKE QUALITY Adequate equipment. Purchasing. If they do something better. 5. Distribution and Sales have a vital role to play in providing quality to customers.

In January 1999.Training and teamwork are crucial to the successful implementation of high quality standards. UN Secretary General Kofi Annan announced the . Let us practice it every day. Problems must be anticipated and prevented before they occur. It is through employee involvement that goals and targets can be achieved in the shortest time. It is the responsibility of senior managers to communicate the quality objectives and to provide the resources necessary for their implementation. It is then up to all employees to make Quality happen throughout the company. We motivate employees by demonstrating management commitment to Quality. Quality must be a way of life for everyone in the company. Teamwork allows us to achieve results that are greater than the sum of individual efforts. So we must strive for continuous improvement in every area. At Nestlé. Shortcomings and mistakes must be analyzed and corrected. Continuous training ensures that everyone understands his tasks and has the necessary skills to carry them out. Quality is our first priority. We also must identify and take advantage of opportunities. Progress is followed by listening to our customers and by measuring our performance. To stand still is to fall behind. It is through many small improvements as well as through major breakthroughs that we will achieve excellence.QUALITY IS ACTION Quality is the result of deliberate action. by setting challenging goals and by giving them responsibility and recognition. 6. GLOBAL COMMITMENT Nestlé firmly supports the principles of the United Nations Global Compact and is committed to reflecting these in its business principles and practices.

International trade and investment create new employment.both precise enough to be relevant and general enough so as to avoid cultural conflict. raise skill levels and increase local economic activity. labour standards and environment. labour standards and the environment are truly universal . These Corporate Business Principles are consistent with the nine principles of the Global Compact. Let us choose to reconcile the creative forces of private entrepreneurship with the needs of the disadvantaged and the requirements of future generations".the "Nestlé Corporate Business Principles" -. This is why we at Nestlé have laid down clear principles of corporate behavior . . It goes back to basics by focusing on a concise set of fundamental principles for living and working in a global society. companies have a duty to manage all aspects of their business in a responsibly and sustainable way. The nine principles addressing human rights. His aim: "Let us choose to unite the power of markets with the authority of universal ideals. which we uphold wherever we operate. At the same time. The Global Compact is based on the recognition that development and poverty reduction depend on prosperity which can only come from efficient and profitable business. but a platform and forward-looking forum for the exchange of good practices in order to achieve actual progress in creating a more prosperous and sustainable world. The Global Compact is not a regulatory regime or a code of conduct. These universal ideals are specified in nine precise points under three headings: human rights.initiative. The UN Global Compact is a symbol of leadership in a complex world.

If there is no local affiliated company in the area. . as well as humanitarian aid. Aquarel. Maggi seasoning/products) and water (Nestlé Pure Life. pastas. etc). in line with our "Corporate Business Principles". in the areas of nutrition. Nestlé makes its contributions to one of the aid organizations it often works with for humanitarian actions in orphanages. deals with the requests for financial support for projects linked to the Company's activities. In the event of natural disasters Nestlé contributes to the rescue operations and emergency aid through its local companies or representatives. dispensaries and children's hospitals in need. through its social and humanitarian actions. for example. through Voluntary Contributions. and contributes to programmes such as the cooperation with the International Red Cross in Africa in its fight against HIV and AIDS. 1. and together with the Nestlé art Foundation for certain cultural activities.At Nestlé.NESTLÉ. Giving financial support is studied on a case-by-case basis. The General Secretariat. Vittel. science. providing various products (soups. A SOCIALLY RESPONSIBLE COMPANY Our Company is well integrated in the communities where it runs its industrial and commercial operations. we will play our part to contribute to these goals. The Public Affairs department maintains contacts with international institutions in Switzerland and abroad. programmes connected with youth. children or sports.

Amul. McCann-Erickson's parent company. Nestlé moved the creative duties of its infant nutrition product range to McCann Healthcare. the move is in accordance with its worldwide consolidation of its communications.2. 3. In January 2003. In instant coffee HLL is a formidable competitor to Nestlé while Heinz is the main competitor in the baby foods. ready mixes for Indian ethnic breakfast and sweets.COMPETITION Nestlé has strong competitive threats from robust players in various categories.5% of sales. Lactoegen and Nestum. Nestlé heavily relied on the print media for its infant . HLL and others. the company has gradually upped its ad spend. are the main competitors in culinary products. The media duties of the Nestle products continue to be with Universal McCann. Therefore. HLL and Indo Nissin Foods. the Ad spends increased by 20% to Rs1. the company has to complete with Cadbury's. handles Nestlé account apart from the numerous local agencies the company hires in various countries. The account that is for brands like Cerelac. With new launches. Worldwide. In the chocolate and confectionery market. Ad spends as percentage of sales stood at 8. semi-processed foods such as noodles.54 bn as the company spent heavily to promote new launches.ADVERTISING The company's advertising has always stressed on the product benefits and the ease of use Like the `bas do minute' maggi ad. As in 2001. the two-year-old healthcare advertising division of McCann-Erickson India from Mudra Communications. Delhi. Interpublic.1617 cr. is estimated to be worth Rs. Interestingly. with its Top Ramen brand.

brand communication under Mudra. OUR RESPONSIBILITY 1. In this report we attempt to describe how we practice and implement the principles of sustainable development where we have direct influence and impact on economies. In meeting our commitment to be a leader in sustainable development.SUSTAINABILITY a) QUALITY FOOD PRODUCTS AND SUSTAINABLE DEVELOPMENT As we move ahead in the 21st century. our responsibilities and values are reflected in our commitment to the nestle corporate business principle. For everyone in our company. These set out the basic rules we follow to make sure we maintain the highest standards of conduct. we build on two of the essential pillars of our long-term strategy: innovation-renovation and operational efficiency. we believe that a business strategy based on high-quality food and beverage products can only be maintained by business practices based on the principles of longterm sustainable development. This report presents some key performance measures and figures. . but with McCann the strategy may differ. societies and environments. and shows how we endeavor to put our Principles into practice.

We innovate in new products and technologies to meet the present and future needs of our consumers in an increasingly sustainable manner. to improve the farming methods and standard of living of millions of farmers. As such.GENE TECHNOLOGY a) NESTLÉ'S POSITION ON GENE TECHNOLOGY From its inception more than 130 years ago. Managing our activities in accordance with the principles of sustainable development makes good business sense. 2. Nestlé needs to purchase high-quality agricultural goods produced in a sustainable way. resulting not only in lower operating costs. Nestlé has built its business on successfully applying scientific breakthroughs and technological innovations while taking full responsibility for the quality and the safety of its products. We are dedicated to continuous improvement in the efficient use of resources. but also in a lower impact on the environment. Throughout these years Nestlé has . This is Nestlé's initial effort to report on sustainable development. and consumer appeal. and we improve or renovate existing products and technologies for the same reasons. as opposed to an end point in itself. and to listening to the views of others as we move forward in sustainable development. nutritional value. attempting to describe our impact on the well being of people and the planet. Even though we own no agricultural land. through technical assistance. our approach has been. Given the company's focus on high quality. food safety. We are committed to being open and transparent. it is a step on a journey.

been manufacturing and marketing products tailored to meet the diverse needs and preferences of consumers all over the world. consumers' perceptions and opinions differ in the various regions of the world. SAFETY The safety of our products and the integrity of the ingredients from which they are manufactured are paramount to Nestlé. OECD and numerous independent scientific bodies have concluded that genetically modified crops. can be registered as safe for use in food production. Nestlé supports a responsible application of gene technology for food production based on sound scientific research. including ingredients derived from them. WHO. 3. b) GENE TECHNOLOGY IN FOOD PRODUCTION With this vast experience. FAO. Clearly. Genetically modified crops. which have passed food safety evaluation procedures. positive health effects have been confirmed. comply to strict regulatory and safety evaluations. Hence Nestlé has always strived to respect these differences and to take them into account in its activities. availability and nutritional value of food. as all raw materials used by Nestlé. Nestlé concurs with their shared opinion that such crops are as safe as their traditional counterparts. Gene technology has the potential to increase food production and to support sustainable agricultural practices. Nestlé recognizes the potential gene technology has in the longer term to improve the quality. For those reasons. This broad experience has provided Nestlé with thorough insight into and understanding of consumer demands. . In some instances. both in developing and developed countries.

in Nestlé products. derived from genetically modified crops. and recognizing government’s responsibility for the regulatory process. 5. Nestlé's long-term experience in food production can be a valuable resource in finding the right balance between these elements. Nestlé's Consumer Services are well equipped to provide this access and thus are the first source of information. cultural differences and consumer preferences as well as attitudes concerning the use of ingredients derived from genetically modified crops. Nestlé takes into consideration local needs. Provided their safety is proven. governments have expressed a keen interest in this technology as a potential tool to address their country's future food requirements. without jeopardizing in any way the safety and quality of its products. Many governments now have implemented or are considering regulations for the use and labelling of these ingredients. derived from genetically modified crops. Nestlé strictly adheres to national laws and regulations regarding their labelling. In the absence of a global agreement on the labelling of ingredients. a) CONSUMER PERCEPTIONS AND THE FUTURE NEEDS OF SOCIETY As a global food manufacturer and marketer. ENVIORMENT . This may well result in different solutions in various regions of the world. In some regions of the world. as required for all ingredients.4. including the use of ingredients.CONSUMER INFORMATION AND LABELLING Consumers confidence in the food they are buying is supported by having access to information. Nestlé will continue to use ingredients derived from genetically modified crops wherever appropriate.

Also. I spend a great deal of time traveling to these countries and have personally visited many of the 468 Nestlé factories currently in operation.Nestlé was founded in 1867 by pharmacist Henri Nestlé on the shores of Lake Geneva in Vevey. surrounded by the Swiss Alps in one of the world’s best-preserved environmental settings. including a significant decline in the amounts of water and energy used to bring each kilo of Nestlé products into your home. Switzerland. Our Environmental Officer reports directly to General Management to ensure there is on-going awareness regarding environmental affairs. we are never . and a similar reduction in factors which potentially affect global warming. One of the reasons for doing so is to see for myself that our facilities reflect the environmental values basic to our Company. the Nestlé Environmental Advisory Group (made up of corporate experts from many functions) meets regularly to review current environmental issues and to anticipate potential concerns. The Nestlé Environment – Progress Report 2000 describes the results of continuous improvement in our environmental practices. I follow the Company’s environmental performance. One hundred and thirty-four years later. This allows us to maximize control over our activities and contribute to sustainable development in the countries where we operate. Moreover. However. our headquarters are still in Vevey. including the results of our environmental performance indicators. I am pleased about the clear progress in a number of key areas. As we have grown from humble beginnings into the world’s largest food company. we have attempted to take the fundamental cultural values of environmental preservation and cleanliness into every country where we operate.

and are committed to further environmental improvements. work to make this a better planet on which to live. This leadership is only possible through the collective commitment of the tens of thousands of individual Nestlé employees who.completely satisfied with our current performance. labour standards and environment. His aim: "Let us choose to unite the power of markets with the authority of universal ideals. Let us choose to reconcile the creative forces of private entrepreneurship with the needs of the disadvantaged and the requirements of future generations". We try to remain sensitive to the environmental concerns of our consumers and the public as a whole. we have pledged our adherence to The Business Charter for Sustainable Development of the International Chamber of Commerce. on a daily basis. . These universal ideals are specified in nine precise points under three headings: human rights. As a charter member of the World Business Council for Sustainable Development. 6. we attempt to keep our policies at the forefront of industrial companies.UN GLOBAL COMPACT Nestlé firmly supports the principles of the United Nations Global Compact and is committed to reflecting these in its business principles and practices. UN Secretary General Kofi Annan announced the initiative. For this reason. This Report is dedicated to them. and we are committed to being a leader in environmental performance. In January 1999.

The Global Compact is not a regulatory regime or a code of conduct. it is expanding its dairy business to drive future growth. In accordance. The nine principles addressing human rights. International trade and investment create new employment. labour standards and the environment are truly universal . companies have a duty to manage all aspects of their business in a responsibly and sustainable way. The UN Global Compact is a symbol of leadership in a complex world.The Global Compact is based on the recognition that development and poverty reduction depend on prosperity. These Corporate Business Principles are consistent with the nine principles of the Global Compact. but a platform and forward-looking forum for the exchange of good practices in order to achieve actual progress in creating a more prosperous and sustainable world.both precise enough to be relevant and general enough so as to avoid cultural conflict. This is why we at Nestlé have laid down clear principles of corporate behavior . However. At Nestlé. FUTURE Nestlé is presently concentrating on product expansion and efficiency in distribution. which we uphold wherever we operate. raise skill levels and increase local economic activity. which can only come from efficient and profitable business. we will play our part to contribute to these goals.the “Nestle corporate business principle” -. It goes back to basics by focusing on a concise set of fundamental principles for living and working in a global society. the company's entry into the already . At the same time.

especially in Europe. jams.overcrowded mineral water segment is cause for concern. chilled dairy products and wine. The Swiss business. 800 cr. mostly through license partners. the company has signed an agreement with the Mövenpick Group to acquire the Mövenpick brand of ice cream products and related ice cream businesses worldwide with the exception of the New Zealand manufacturing operations in January 2003. more so from the Cola giants. Movenpick is a relatively infant operation but Nestlé India has been doing well in the segment. . Earlier ice cream acquisitions. It also does not include the hotel and restaurant business. Nestlé will continue to manufacture Mövenpick ice cream products in Switzerland but the agreement does not include other Mövenpick food businesses such as coffee. of Nestlé like Häagen-Daazs' icecream business for which Nestlé has a 99-year license proves that established ice cream brands could co-exist with the acquired ones. who grow with Nestlé brands of baby foods. BRANDS “Just two minutes” The Maggi noodles ad has enticed many moms and kids to adopt a non-Indian snack food into their lives. The whole family right from infants. and it is vied by all the major food companies. To improve its ice cream business. Mövenpick branded ice cream sales worldwide amount to approximately Swiss Franc 300 million. The brand image of Mövenpick and its quality complements the Nestlé ice cream business. In India this move is significant as the ice cream business in the country is about Rest. accounts for around Swiss Franc 40 million. This acquisition seems to have augmented Nestlé position as one of the world market leaders in ice cream. which will continue to be owned by the Mövenpick Group. As per the agreement. including exports.

confectioneries. It has come to occupy a significant position in chocolates. For a long time. milk products and noodles. noodles. Nestlé India's operations were restricted to importing and trading of condensed milk and infant food. It has particularly leveraged its performance in sectors such as ice cream and pet foods with aggressive acquisitons. infant foods. processed foods. 51% subsidiary of Nestlé SA and the company behind such successes is among the leading branded food player in the country.. who drool over its range of noodles. ketchup and soups. the company ventured into the mineral water segment with Pure Life. Nestlé SA Switzerland was founded in 1866 and is today the largest food and beverage company. in recent years. It operates in 83 countries and through its punch line good food good life. to adults. bakery products. milk products. is endeavoring to revolutionize consumption patterns of people across the world. The group holds a major interest in cosmetics company L' Oreal. surgical instruments etc). Nestlé India Ltd. It has a broad presence in the foods sector with leading market shares in instant coffee. . it has expanded with products in instant coffee. it has focussed heavily on food and beverage business. The company worldwide is a heavy ad spend. cooking aids. The group activities include beverages (with Nescafe as the flagship brand). THE BEGINNINGS The parent company. who pamper their sweet tooth with brands like Milkmaid and begin their mornings with Nescafe enjoys Nestlé products. In 2001. children. As with other food companies. But over the years. confectioneries and other semi processed food products also. pharmaceutical products (ophthalmic. The company's century old stint in India makes it one of the oldest foods MNCs operating in the country.

Its leading brands include Cerelac. to the current name Nestle India Ltd. malted beverage).. Beverages (Coffee. recording an ad spend of Rs. The top export market is Russia. Poland and Taiwan are the other key markets.The parent company held 51% stake in the company as in 2000 It has been gradually acquiring shares from the open market. Nescafe.128. According to A&M annual survey. Chocolates and confectionery and other processed food products. culinary aids. In fact Sunrise was relaunched in 2001 under the Nescafe franchise to leverage on the existing equity of the brand. Milk products. Beverages like coffee. the company came out with public offer and issued shares to the Indian public to reduce its foreign holdings to 40%. In 1978. The brand Nescafé dominates the premium instant-coffee segment while the company's other coffee brand Sunrise also has been making significant contribution to its earnings. pickles. Nestlé India also lavishly spends on advertising to keep-up demand. Kitkat. in 1981. Maggi. chocolates and confectionery. Nestlé was the country's sixth largest advertising spend in 2000-01.sauces. .46 cr which is around 13. Like the parent. The company is one of the largest coffee exporters from India. The parent company plans to continue hiking stake through open market purchases The Company's business Nestlé operates in the following categories Baby Food. Nestum. Parent stake in the company as at the end-2001 stood at 53.8%. Nestlé was incorporated as a limited company in 1959. dairy products and mineral water. tea and health drinks contribute to nearly 30% of the company's turnover. Munch and Pure Life. while Hungary.6% moa than the previous year. Its name was changed from Foods Specialties Ltd.

Lions and has launched new products like Choco Stick and Milky Bar Choo at attractive price points to lure in new consumers. To boost growth in this segment. The company's milk products include dairy whiteners Everyday. in fact. the largest selling chocolate brand in the world. Munch etc. Nestlé dominates in the baby weaning foods with an 87% market share with brands such as Cerelac and Nestum. Tea Mate and Milk-maid brand. Bar-One. sold under the umbrella brand Maggie. But lately.Nestlé has always focused on expanding the domestic market through price cuts and product repositioning. In accordance. where it has a 37% market share. which contributes 14% to the turnover. . Soothers. Nestlé Rich Dark. Other products. it has been losing share in the domestic market. Other brands are-Milky Bar. The processed food business is the key business of the company in India. which are sold under the umbrella brand Allen's. In the sugar confectionery product portfolio the company has brands like Polo. Crunch. The baby food and milk products category contribute about 43% of the company's turnover. The company markets ready to cook food and cooking aides under the umbrella brand name Maggi. Chocolates and Confectionery form a major part of Nestlé's product portfolio since it forayed into the category in 1990. a brown-malted beverage was launched in 1996 and non-carbonated cold beverages such as Nestea Iced Tea and Nescafe Frappe were launched during 2001. To prevent further erosion in its share. The company is able to command a price premium in this segment because of strong brand loyalties. Nestlé has started marketing some of its imported brands like Quality Street. Milo. Nestle even relaunched Bar-One in 2001. The locally popular Kit-Kat brand is. it has banked on several new launches in India. Maggi is the market leader in the noodles (45% market share) and the ketchup (43% market share) categories. Marbles.

Buitoni Tidy cats. Maxibon Crunch. seasonings.are ready-to-cook gravy. Nescafe. Gloria. Lc1 Extrême. Nesquik. Nestea Perrier. . Smarties. Munch Maggi. Cerelac Coffee-Mate. pro plan Milo. soups. . Aquarel RESEARCH METHODOLOGY SECONDARY SOURCES OF DATA Data was collected from the websites of Cadbury and Nestle. Pure Life. Beba. one . as well as traditional Indian foods such as pickles and instant snack mixes. Segment Baby Foods Dairy Products Ice Cream Chocolate and Confectionery Prepared Foods Pet care Beverages Bottled Water Top Brands (Worldwide) Alete. sauces. KitKat. Vittel. Sanpellegrino.

Another website of Google and Yahoo search engines. Stastical techniques.pie diagrams Bar graphs. SAMPLING Sample size of 50 respondants was taken. Moreover some articles were also added from newspaper like the Economics times PRIMARY SOURCES OF DATA The data was collected through the questionnaires. NESTLE . CADBURY b. 1. The respondents belonging to the various categories filled the questionnaires like College students Professionals Scholl students And others mostly belong to the age group of 15-35 years. WHICH BRAND DO YOU PREFER? a. which consisted a mix of open ended and closed ended questions.

brand 24% 76% cadbury nestle .

DO YOU EAT CHOCOLATES? YES a.2. NO chocolates 20% 80% yes no .

FREQUENTLY eat chocolates 29% 39% 32% rarely occasionally frequently . OCCASIONALLY c. HOW OFTEN DO YOU EAT CHOCOLATES? a. RARELY b.3.

SMALL b. WHICH SIZE DO YOU PREFER? a.4. LARGE size 10% 37% 53% small medium large . MEDIUM c.


6. NO other comapnies 20% 56% 24% amul foreign no . WHAT OTHER CHOCOLATE COMPANIES ARE YOU AWARE OF? a. AMUL FOREIGN b.

DO YOU THINK THAT SOME CHOCOLATE COMPANIES SHOULD COME UP? a. YES b.7. NO entry of other companies 15% 85% yes no .

CADBURY b. NESTLE taste 24% 76% cadbury nestle . TASTE OF WHICH BRAND IS PREFERAED MOST? a.8.

9. WHY DO YOU PREFER CADBURY OR NESTLE OVER OTHER CHOCOLATES? a. e. b. c. d. SIZE QUALITY PRICE TASTE VARIETY preference of cadbury or nestle over other chocolates 6% 23% 35% 27% 9% size quality price taste variety .

HOW WOULD YOU RATE THE QUALITY OF THESE PRODUCTS? a.10. EXCELLENT quality 15% 10% 33% 42% fair good very good excellent . VERY GOOD d. POOR b. GOOD c.

KITKAT . NESTLE b. WHICH PRODUCT OF CADBURY/ NESTLE? a. DAIRY MILK b.‘ 11. 5STAR OTHERS cadbury products 18% 15% 67% dairy milk 5star others a.




5.FAIR.POOR. 4. 2.VARIETY_________TASTE________  WHAT OTHER CHOCOLATE COMPANIES ARE YOU AWARE OF? _________________________________________________________  WHICH BRAND DO YOU PREFER MOST? CADBURY______NESTLE________  WHICH PRODUCT OF NESTLE / CADBURY? __________________________________________________________  ARE YOU SATISFIED WITH THE PRICES PROVIDED BY THE CADBURY / NESTLE? YES ____ NO_____  HOW WOULD YOU RATE THE QUALITY OF THESE PRODUCTS ON THE SCALE OF 1 TO 5? ___________________________________________________________ (IF 1. 3.EXCELLENT)  WHICH SIZE DO YOU PREFER? 2 _______5________ 8_______  TASTE OF WHICH BRAND IS PREFERED MOST? CADBURY _________ NESTLE_______  DO YOU THINK THAT SOME MORE CHOCOLATE COMPANIES SHOULD COME UP? YES_______ NO_______  WHAT IMPROVEMENTS DO YOU SUGGEST FOR THESE SERVICE PROVIDERS? _______________________________________________________________ Name: _________ Age: ________ Profession: ________ Income: _________ .GOOD.VERY GOOD.

. www.            www.Nestle..The research material has been collected from the search engines of YAHOO and www.indiainfoline.cadburyindia. The various websites are……… www.whizseek.cadbury.

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