A Dissertation report Title– Chocolate Industry

Second Report

“Review of Literature,Research Gap & Objectives”

Submitted in Partial Fulfillment of the Requirement

of Manipal University For the Award of the Degree
of
Master of Business Administration

Under the guidance of

Dr C.Anirvinna
TAPMI SCHOOL OF BUSINESS MANIPAL UNIVERSITY, JAIPUR
Submitted By:
Vishal Nandwana
MBA 2end Year
180701032
 Table of contents
S no Particulars
1 Acknowledgment
2 Problem identification
3 Introduction & Title of the Topic- Chocolate Industry
4 Objectives of the Study

5 Limitations of The Study

6 Review of The Literature

.
 Acknowledgement

First of all I want to express my thanks & gratitude to the Dr C. Anirvinna who has given me the
opportunity to do the dissertation and conduct the research on the topic “Chocolate Industry under
whose supervision & guidance I am able to successfully complete my project. I also want to express
my thanks to my friends & family members who has supported me a lot in the successful completion
of the project supporting me at each stage and also motivated me to do the project & helped me
indirectly in the collection of the data & some relevant information related to the topic
 Problem Identification
Chocolate confectionery manufacturers and retailers continue to face multiple challenges.
Along with the increases in the price of raw materials, they are also encountering
widespread government regulation and competitive pressure. These continue to cause
headaches and place burdens on their earnings.
Introduction and title of the research topic

Chocolates had its beginning in the times of the Mayas and the Aztecs when they beat cocoa into a
pulp and made bitter frothy chocolate out of them. They first became popular in Europe in a highly
222 unrefined form. Then the Hershey Food Company was the first to bring out chocolates in the
currently popular solid form. The main ingredients of chocolate are cocoa grown mainly on equatorial
zones and of the consumers looks for variety he goes in for some of that company’s own sugar milk
solids and permitted emulsifiers. Cocoa constitutes nearly 40% of the total raw material cost. The
following report studies the chocolate industry in India and in particular the position of the chocolate
brand - Cadbury. The brand name chosen is the umbrella brand as it was felt that the corporate name
is recognized as brand not so much its individual products. The study focuses on the marketing and
the advertising, employed by Cadbury in the context of the Indian macro environment and industry
structure. The advertising strategy is studied with respect to Cadburys business and marketing
objectives. The strategies adopted are then analyzed for each product offering. Considering the
strategies of Cadburys major competitor follows the analysis, nestle India ltd. to get an understanding
as to where Cadburys stands.
Objectives of the Study: -

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

❖ To study on consumer preference towards Cadbury and Nestle chocolates.

❖ To know the consumers, view towards the chocolates.
❖ To know which category of chocolate is most preferred.
❖ To study on various parameters on which the consumer purchases the chocolates.
❖ To increase customer satisfaction and recapture the market share by fulfilling the customer needs.
❖ To study the factors affecting the consumption pattern.

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

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

❖ Due to limitation of time only few people were selected for the study. So, the sample of consumers was not enough to
generalize the findings of the study.
❖ The main source of data for the study was primary data with the help of self-administered questionnaires. Hence, the
chances of unbiased information are less.
❖ People were hesitant to disclose the true facts.
❖ The chance of biased response can’t be eliminated though all necessary steps were taken to avoid the same.
 Review of Literature:

❖ A Comparative Study of Consumer Preference towards Cadbury and Nestle Chocolates with Special Reference to Navi Peth
Area in Solapur City” viewed that Chocolate is liked and eaten by all age group of people.

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

❖ Kaberi Bhattacharyya (2011) in his study “The Role of Media in Influencing Customers’ Brand Choice: Some
Observations” told that a brand has arrived in the market, is alive and kicking or simply pulling on. Similarly, generations of
customers are made known that a brand has still remained relevant in the changing context of time and space. Leveraging on
the charm of audio and video, brands engulf our senses and succeed in becoming an intrinsic part of our lives. While the
trust earned by them is directly proportional to their attributes and functionalities, the buzz created around the brands by the
media helps them break the clutter of competition and stay vibrant in the consumers’ minds. Creative juices give birth to
myriad themes, processes, colours and themes and familiar and not-so-familiar faces take them forward. Although
advertisements traditionally remain the sheet anchor, brands use other above-the-line and below-the-line techniques to gain
an edge or grab eyeballs. All these definitely has fuelled consumerism and the responsibility for developing the consumerist
culture that have taken a vice like grip over our lives and its catastrophic impact on the natural environment can be ascribed
to a large extent on the burgeoning media. But the irony is that it is the media again which has declared these wrong-doings
to the public and implicated the corporate or the brands into the muddle. This has again thrust upon these brands or their
mentors to engage in clean or green activities that would resuscitate their image wholeheartedly.