A PROJECT REPORT

On

“A COMPARATIVE STUDY OF CONSUMER

BEHAVIOUR TOWARDS NESTLE AND
CADBURY CHOCOLATE”

Submitted towards Partial Fulfillment of

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

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

DEWAN INSTITUTE OF MANAGEMENT STUDIES MEERUT

[AFFILIATED TO CCS UNIVERSITY, MEERUT]

i
 DECLARATION

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

COMPARATIVE STUDY OF CONSUMER BEHAVIER TOWARDS

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

Professor of Management Department VICT, Meerut” in partial fulfillment of the

requirement for the award of Degree of Bachelor of Business Administration at Vidya

Institute of Creative Teaching, Meerut. This is an original piece of work & I have not

submitted it earlier elsewhere.

AKSHI

BBA-V SEM

ROLL NO.200986105017

iii
 ACKNOWLEDGEMENT

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

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

BBA DEPARTMENT who helped me with full devotion and always supported me

earnestly whenever it was needed. Without his guidance, mental & moral support and

academic inputs this report was not possible.

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

operation of those Clients who participated in this. I am thankful to all of them for

giving me their valuable time.

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

Professor of Management Department , for overall guidance and help.

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

manifested their great interest in my research work also and always tried to make

things easy for me.

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

understanding have enabled me to complete this endeavor with ease.

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

project report.

Under The Guidance of : Submitted by:

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

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

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

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

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

Market

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

v
 Marketing

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

Marketingmanagement

Marketing management istheorganizationaldisciplinewhichfocusesonthe

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

Marketingstrategy

Marketing strategy that measures how products or services supplied by a

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

TABLE OF CONTENTS PAGE NO

PROJECT NAME i

CERTIFICATE FROM THE GUIDE ii

DECLARATION iii

ACKNOWLEDEMENT iv

EXECUTIVE SUMMARY v

TABLE OF CONTENTS
CHAPTER NUMBER CHAPTER NAME CONTENTS PAGE NUMBER
1 INTRODUCTION 2
AND CAMPANY PROFILE HISTORY OF CHOCOLATE 4-9

CHOCOLATE PRODUCTION 9-12

CONSUMPTION OF CHOCOLATE IN INDIA 12-13

NESTLE'S PROFILE 14-17
CUDBURY PROFILE 17-47
SCOPE OF THE STUDY 48
OBJECTIVES OF THE STUDY 49

2 RESEARCH METHODOLOGY BASIS OF RESEARCH AND DESIGN 50-57

3 DATA ANALYSIS OF THE STUDY ANALYSIS OF DATA 59-75
FINDING 76
4 SUGGESTIONS AND RECOMENDEATION LIMITATIONS OF THE STUDY 77-79

5 CONCLUSION 81
BIBLIOGRAPHY 82-83
OUESTIONNAIRE 84-85

LIST OF TABLES AND GRAPH

TABLE NUMBER TITLE PAGE NUMBER
1 LIKING OF THE CHOCOLATES 59
2 DIFFERENT AGE GROUP 60
3 PREFERENCE ACCORDING TO AGE GROUP 61
 4 BRAND PREFERENCE 62
5 PURCHASE OF CUDBURY CHOCOLATES 63
6 PURCHASE OF NESTLE CHOCOLATES 64
7 OVERALL PURCHASE OF CHOCOLATES 65
8 INFLUENCING FACTORS DURING PURCHASE 66-70
9 FACTORS GIVING MOST SATISFACTION TO CONSUMERS 71-75

LIST OF TABLES AND GRAPH

TABLE
NUMBER TITLE PAGE NUMBER

1 LIKING OF THE CHOCOLATES 59

2 DIFFERENT AGE GROUP 60

3 PREFERENCE ACCORDING TO AGE GROUP 61

4 BRAND PREFERENCE 62

5 PURCHASE OF CUDBURY CHOCOLATES 63

6 PURCHASE OF NESTLE CHOCOLATES 64

7 OVERALL PURCHASE OF CHOCOLATES 65

8 INFLUENCING FACTORS DURING PURCHASE 66-70

9 FACTORS GIVING MOST SATISFACTION TO CONSUMERS 71-75

1
Chapter -1
2
INTRODUCTION

3
 INTRODUCTION

In this research I have survey the product performance and buying behavior of two famous

brands of chocolates – Nestle and Cadbury, which are consumed by people of all ages. During

this research I have interacted with people of “Meerut”. After this research I came to know how

people perceives these products on the variables like price, quality, advertisement, satisfaction,

taste, packaging, brand loyalty etc. I also came to know which particular brand of chocolate is

most preferred by people of different age groups. In this research I have surveyed that how

frequently and how much chocolate they consume, whether they buy small, big or family pack.

Trend of ongoing changes in their likings has been shown in the report. In this report I have

tried to explain the entire research and facts product wise.

4
 COMPANY PROFILE

Chocolate

The very word makes your mouth water.

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

Chocolates

Chocolates! Chocolates!

Every body has a liking for them, be they in the form of bar

Or a tiny little gem,

Or shaped like a rectangle,

Or a sphere, a brick or an éclair.

For chocolate lovers it is fun,

To have them during rain, breeze or sun.

They are white and brown in color,

And taste sweet and bitter

Some have them in a glass of cold coffee, or in the form of a toffee.

Some eat them when they are sad

Some relish them when they are happy or have sweet dreams,

But I feel, to have chocolates

We don’t need a reason,

5
‘Cause we can have it

Anytime, any season!

History of chocolate:

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

Central America, who first enjoyed “chocolate” a much-prized spicy drink made from roasted

cocoa beans.

Throughout its history, whether as cocoa or drinking chocolate beverage or confectionary treat,

chocolate has been a much sought after food.

The Aztec empire

“Chocolate”(in the form of a luxury drink) was consumed in large quantities by the Aztecs:

the drink was described as “ finely ground, soft, foamy, reddish, bitter with chill water, aromatic

flowers, vanilla and wild bee honey.

The dry climate meant the Aztecs were unable to grow cocoa trees, and had to obtain supplies

of cocoa beans from “tribute” or trade

Don Cortes

The Spanish invaded Mexico in the 16th century, by this time the Aztecs had created a powerful

empire, and the Spanish armies conquered Mexico. Don Cortes was made captain general and

governor of Mexico.

When he returned to Spain in1528 he loaded his galleons with cocoa beans and equipment for

making the chocolate drink. Soon “chocolate” became a fashionable drink enjoyed by the rich

in Spain.

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.

6
Drinking chocolate

The secret of chocolate was taken to France in 1615, when Anne, daughter of Phillip 2 of Spain

married king Louis 13 of France

The French court enthusiastically adopted this new exotic drink, which was considered to have

medicinal benefits as well as being a nourishing food. Gradually the custom of drinking

chocolate spread across Europe, reaching England in the 1650’s

First chocolate for eating

Up until this point all chocolate recipes were based on plain chocolate. It was an English

doctor, sir Hans’s Sloane, who- after traveling in south America- focused on cocoa and food

values, bringing a milk chocolate recipe back to England.

The original Cadbury milk chocolate was prepared to his recipe.

History:

The earliest record of chocolate was over fifteen hundred years ago in the central America rain

forests, where the tropical mix of high rain fall combined with high year round temperatures

and humidity provide the ideal climate for cultivation of the plant from which chocolate is

derived, the cacao tree.

“ Chocolate is made from the cocoa bean, found in pods growing from the trunk and lower

branches of the cacao tree, Latin name “ theobroma cacao” meaning “ food of the gods”

Cacao was corrupted into the more familiar “cocoa” by the early European explorers. The

Maya brewed a spicy, bittersweet drink by roasting and pounding the seeds of the cacao tree

with maize and capsicum peppers and letting the mixture ferment. This drink was reserved for

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

porridge.

The Aztecs, like the Mayans, also enjoyed cacao as a beverage fermented from the raw beans,

which again featured prominently in ritual and as a luxury available only to the very wealthy.

The Aztecs called this drink xocolatl, the Spanish conquistadors found this almost impossible to

7
pronounce and so corrupted it to the easier “chocolate” the English further changed this to

chocolate.

The Aztec’s regarded chocolate as an aphrodisiac and their emperor, Montezuma reputedly

drank it fifty times a day from a golden goblet and is quoted as saying of xocolatl: “the divine

drink, which builds up resistance and fights fatigue. A cup of this precious drink permits a man

to walk for a whole day without food”

Chocolate in Europe

Xocolatl! or chocolate or chocolate as it became known, was brought to Europe by Cortez, by

this time the conquistadors had learned to make the drink more palatable to European tastes by

mixing the ground roasted beans with sugar and vanilla ( a practice still continued today), thus

offsetting the spicy bitterness of the brew the Aztec’s drank.

The first chocolate factories opened in Spain, where the dried fermented beans brought back

from the new world by the Spanish treasure fleets were roasted and ground, and by the early

17th century chocolate powder – from which the European version of the drink was made- was

being exported to other parts of Europe. The Spanish kept the source of the drink- the beans- a

secret for many years, so successfully in fact, that when English buccaneers boarded what they

thought was a Spanish “ treasurer galleon” in 1579, only to find it loaded with what appeared to

be “ dried sheep’s droppings, they burned the whole ship in frustration. If only they had known,

chocolate was so expensive at that time that it was worth its weight in silver (if not gold),

chocolate was treasure indeed!

Within a few years, the cocoa beverage made from the powder produced in Spain had become

popular throughout Europe, in the Spanish Netherlands, Italy, France, and Germany and – in

about 1520 – it arrived in England.

The first chocolate house in England opened in London in 1657 followed rapidly by many

others. Like the already well established coffee houses, they were used as clubs where the

8
wealthy and business community met to smoke a clay pipe of tobacco, conduct business and

socialize over a cup of chocolate.

Back to the America’s

Events went full circle when English colonists carried chocolate (and coffee) with them to

England’s colonies in North America. Destined to become the United States of America and

Canada, they are now the world’s largest consumers – by far – of both chocolate and coffee,

consuming over half of the words total production of chocolate alone.

The Quakers

The Quakers were, and still are, a pacifist religious sect, an offshoot of the puritans of English

civil war and pilgrim fathers fame and a history of chocolate would not be complete without

mentioning their part in it. Some of the most famous names in chocolate were Quakers, who for

centuries held a virtual monopoly of chocolate making in the English speaking world – fry,

Cadbury and row tree are probably the best known.

It’s probably before the time of the English civil war between parliament and King Charles 1st

that the Quaker’s who evolved from the puritans, first began their historic association with

chocolate. Because of their pacifist religion, they were prohibited from many normal business

activities, so as an industrious people with a strong belief in the work ethic (like the puritans),

they involved themselves in food related businesses and did very well. Baking was a common

occupation for them because bread was regarded as the biblical “staff of life”, and bakers in

England were the first to add chocolate to cakes so it would be a natural progression for them to

start making pure chocolate. They were also heavily involved in breakfast cereals but that’s

another story.

What is certain is that the fry, row tree and Cadbury families in England among others, began

chocolate making and in fact Joseph fry of fry &sons (founded 1728 in Bristol, England) is

credited with producing and selling the world’s first chocolate bar. Fry’s have now all but

disappeared (taken over by Cadbury) and row tree have merged Swiss company nestle, to form

9
the largest chocolate manufacturer in the world. Cadbury have stayed with chocolate production

and are now, if not quite the largest, probably one of the best-known chocolate makers in the

world.

Chocolate as we know it

The first mention of chocolate being eaten in solid form is when bakers in England began

adding cocoa powder to cakes in the mid 1600’s. Then in 1828 a Dutch chemist, Johannes van

houten, invented a method of extracting the bitter tasting fat or “cocoa butter” from the roasted

ground beans, his aim was to make the drink smoother and more palatable, however he

unknowingly paved the way for solid chocolate as we know it.

Chocolate as we know it today first appeared in 1847 when fry & sons of Bristol, England –

mixed sugar with cocoa powder and cocoa butter (made by the van houten process) to produce

the first solid chocolate bar then in1875 a Swiss manufacturer,

Daniel peters, found a way to combine (some would say improve, some would say ruin) cocoa

powder and cocoa butter with sugar and dried milk powder to produce the first milk chocolate.

10
CHOCOLATE PRODUCTION

The cocoa-bean -- the heart of the sweetest delicacy in the world -- is bitter! This is why, up to

the 18th century some native tribes ate only the sweetish flesh of the cocoa fruit. They regarded

the precious bean as waste or used it, as was the case among the Aztecs, as a

form of currency.

The Varieties

There are two quite different basic classifications of cocoa, under which practically all varieties

can be categorized: Criollo and Forastero cocoas. The pure variety of the Criollo tree is found

mainly in its native Equador and Venezuela. The seeds are of finer quality than those of the

Forastero variety.

They have a particularly fine, mild aroma and are, therefore, used only in the production of

high-quality chocolate and for blending. However, Criollo cocoa accounts for only 10% of the

world crop. The remaining 90% is harvested from trees of the Forastero family, with its many

hybrids and varieties. The main growing area is West Africa. The cocoa tree

can flourish only in the hottest regions of the world.

TheHarvest

immediately after harvesting, the fruit is treated to prevent it from rotting. At fermentation sites

either in the plantation or at, collecting points, the fruit is opened.

Fermentation

The fermentation process is decisive in the production of high quality raw cocoa. The technique

varies depending on the growing region.

11
Drying

After fermentation, the raw cocoa still contains far too much water; in fact about 60%. Most of

this has to be removed.

What could be more natural than to spread the beans out to dry on the sun-soaked ground or on

mats? After a week or so, all but a small percentage of the water has evaporated.

Cleaning

Before the real processing begins; the raw cocoa is thoroughly cleaned by

passing through sieves, and by brushing. Finally, the last vestiges of wood, jute

fibers, sand and even the finest dust are extracted by powerful vacuum

equipment.

Roasting

the subsequent roasting process is primarily designed to develop the aroma. The entire roasting

process, during which the air in the nearly 10 feet high furnaces reaches a temperature of 130

°C, is carried out automatically.

Crushingandshelling

the roasted beans are now broken into medium sized pieces in the crushing machine.

Blending

Before grinding, the crushed beans are weighed and blended according to special recipes. The

secret of every chocolate factory lies in the special mixing ratios, which it has developed for

different types of cocoa.

Grinding

the crushed cocoa beans, which are still fairly coarse are now pre-ground by special milling

12
equipment and then fed on to rollers where they are ground into a fine paste. The heat generated

by the resulting pressure and friction causes the cocoa butter (approximately 50% of the bean)

contained in the beans to melt, producing a thick, liquid mixture.

This is dark brown in color with a characteristic, strong odour. During cooling it gradually sets:

this is the cocoa paste.

At this point the production process divides into two paths, but which soon join again. A part of

the cocoa paste is taken to large presses, which extract the cocoa butter. The other part passes

through various blending and refining processes, during which some of the

cocoa butter is added to it. The two paths have rejoined.

Cocoa Butter

The cocoa butter has important functions. It not only forms part of every recipe, but it also later

gives the chocolate its fine structure, beautiful luster and delicate, attractive glaze.

Cocoa Powder

After the cocoa butter has left the press; cocoa cakes are left which still contain

a 10 to 20% proportion of fat depending on the intensity of compression.

These cakes are crushed again, ground to powder and finely sifted in several

stages and we obtain a dark, strongly aromatic powder, which is excellent for the preparation of

delicious drinks - cocoa. Cocoa paste, cocoa butter, sugar and milk are the four basic

ingredients for making chocolate. By blending them in accordance with specific recipes the

three types of chocolate are obtained which form the basis of ever product assortment, namely:

Kneading

In the case of milk chocolate for example, the cocoa paste, cocoa butter, powdered or
13
condensed milk, sugar and flavoring - maybe vanilla - go into the mixer, where they are

pulverized and kneaded.

Rolling

Depending on the design of the rolling mills, three or five vertically

mounted steel rollers rotate in opposite directions. Under heavy pressure they pulverize the tiny

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

part of a millimeter.)

Conching

But still the chocolate paste is not smooths enough to satisfy our palates. But

within two or three days all that will have been put right. For during this

period the chocolate paste will be refined to such an extent in the conches

that it will flatter even the most discriminating palate.

Conches (from the Spanish word "concha", meaning a shell) is the name given to the troughs in

which 100 to 1000 kilograms of chocolate paste at a time can be heated up to 80 °C and, while

being constantly stirred, is given a velvet smoothness by the addition of certain amounts of

cocoa butter. A kind of aeration of the liquid chocolate paste then takes place in the conches: its

bitter taste gradually disappears and the flavor is fully developed. The chocolate no longer

seems sandy, but dissolves meltingly on the tongue. It has attained the outstanding purity, which

gives it its reputation.

CONSUMPTION OF CHOCOLATES IN INDIA

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
14
growth was witnessed in the early 90’s when Cadbury repositioned chocolates from children to

adult consumption. The biggest opportunity is likely to stem from increasing the consumer base.

Leading players like Cadbury and Nestle have been attempting to do this by value for money

offerings, which are affordable to the masses.

NESTLE’

Nestle India

Nestle’ India is a subsidiary of Nestle’ S.A. of Switzerland. The company insists on honesty,

integrity and fairness in all aspects of its business and expects the same in its relationships.

Nestle India- Presence Across India

Beginning with its first investment in Moga in 1961, Nestlé’s regular and substantial

investments established that it was here to stay. In 1967, Nestlé set up its next factory at Choladi

(Tamil Nadu) as a pilot plant to process the tea grown in the area into soluble tea. The

Nanjangud factory (Karnataka), became operational in 1989, the Samalkha factory (Haryana),

in 1993 and in 1995 and 1997, Nestlé commissioned two factories in Goa at Ponda and

15
Bicholim respectively. Nestlé India is now putting up the 7th factory at Pant Nagar in

Uttaranchal.

Nestle’ Story

Nestlé was founded in 1867 on the shores of Lake Geneva in Vevey, Switzerland and its first

product was “Farine Lactée Nestlé”, an infant cereal specially formulated by Henri Nestlé to

provide and improve infant nutrition. From its first historic merger with the Anglo-Swiss

Condensed Milk Company in 1905, Nestlé has grown to become the world’s largest and most

diversified food Company, and is about twice the size of its nearest competitor in the

food and beverage sector.

Nestlé’s trademark of birds in a nest, derived from Henri Nestlé’s personal coat of

arms, evokes the values upon which he founded his Company. Namely, the values of security,

maternity and affection, nature and nourishment, family and tradition. Today, it is not only the

central element of Nestlé’s corporate identity but serves to define the Company’s products,

responsibilities, business practices, ethics and goals.

In 2004, Nestlé had around 247,000 employees worldwide, operated 500 factories

in approx. 100 countries and offered over 8,000 products to millions of consumers universally.

The Company’s transparent business practices, pioneering environment policy and respect for

the fundamental values of different cultures have earned it an enviable place in the countries it

operates in. Nestlé’s activities contribute to and nurture the sustainable economic development

of people, communities and nations. Above all, Nestlé is dedicated to bringing the joy of ‘Good

Food, Good Life’ to people throughout their lives, throughout the world.

Nestle’ Brands

❖ Milk Products & Nutrition

❖ Beverages

❖ Prepared Dishes and Cooking Aids

16
 ❖ Chocolates & Confectionary

MILK PRODUCTS AND NUTRITION:

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

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

PREPARED DISHES AND COOKING AIDS

MAGGI 2-MINUTE Noodles

MAGGI Vegetable Atta Noodles

MAGGI Dal Atta Noodles

MAGGI Rice Noodles Mania

MAGGI Sauces

MAGGI Pizza Mazza

MAGGI Healthy Soups

MAGGI Healthy Soup- Sanjeevni

MAGGI MAGIC Cubes

CHOCOLATES & CONFECTIONARY

17
 NESTLÉ KIT KAT

NESTLÉ KIT KAT LITE

NESTLÉ MUNCH

NESTLÉ MUNCH POP CHOC

NESTLÉ MILKYBAR

NESTLÉ MILKYBAR CHOO

NESTLÉ BAR-ONE

NESTLÉ FUNBAR

NESTLÉ Milk Chocolate

POLO

POLO Power mint

NESTLÉ Éclairs

NESTLEKITKAT

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

ritual attached to it.

NESTLÉ KIT KAT is one of the most successful brands in the world and every year

over 12 billion NESTLÉ KIT KAT fingers are consumed around the globe.

NESTLE MUNCH

18
NESTLÉ MUNCH is wafer layer covered with delicious choco layer. NESTLÉ MUNCH is so

crisp, light and irresistible that you just ‘can't stop Munching.' NESTLÉ MUNCH is the largest

selling SKU in the category!

NESTLE MILKY BAR:

NESTLÉ MILKYBAR is a delicious milky treat, which kids love. Relaunched in January 2006

with a Calcium Rich recipe, NESTLÉ MILKYBAR is a favorite with parents to treat their kids

with.

NESTLE BAR-ONE

Is a luscious nougat and caramel with delicious Chocó layer. NESTLÉ BAR-ONE constantly

reminds you that it is ‘Time for Action'.

NESTLE Milk Chocolate:

CADBURY

How Cadbury Chocolate is made

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
19
chocolate was not particularly good: it was coarse and dry and not sweet or milky enough for

public tastes.

There was a great deal of competition from continental manufacturers, not only the French, but

also the Swiss, renowned for their milk chocolate.

Led by George Cadbury Junior, the Bourneville experts set out to meet the challenge. A

considerable amount of time and money was spent on research and on new plant designed to

produce the chocolate in larger quantities.

A recipe was formulated incorporating fresh milk, and production processes were developed to

produce a milk chocolate 'not merely as good as, but better than' the imported milk chocolate'.

Four years of hard work were invested in the project and in 1905 what was to

be Cadbury's top selling brand was launched.

Three names were considered: Jersey, Highland Milk and Dairy Maid. Dairy

Maid became Dairy Milk, and Cadbury's Dairy Milk, with its unique flavour and smooth

creamy texture, was ready to challenge the Swiss domination of the milk chocolate market.

By 1913 Dairy Milk had become the company's best selling line and in the mid twenties

Cadbury's Dairy Milk gained its status as the brand leader, a position it has held ever since.

COMPANY OVERVIEW OF CADBURY INDIA

Cadbury began its operations in 1948 by importing chocolates and then re-packing them before

distribution in the Indian market. After 59 years of existence, it today has five company-owned

manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi

(Himachal Pradesh) and 4 sales offices (New Delhi,

marketin termsofvolume.Topushsaleschocolatecompanieshavebeentargeting mainly

20
adultaudiences.Chocolatesarebeingpresentedas snackfoodforthenewtargetaudiences.
Thechocolatesegment ischaracterizedby highvolumes,hugeexpensesonadvertising,low
margins, and pricesensitivity.

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

Untilearly 90s,Cadbury hadamarketshareofover80%,butitsparty wasspoiledwhen

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

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

CoreCompetencies
The core competenciesonwhichour company will competeare:

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

theyareshinybrown, breakscleanlyand is smooth. Yummychocolateshasthe

sufficientquantitiesofcocoabutterand vegetablefatso thatitdoesnotbecome
21
greasyor stickyat ambientroomtemperature.

Ownership
Our companywillbeapartnership firm.

22
CompetitorAnalysis

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

Market Segmentation

Whilewe anticipate a split betweenlocalsandtourists, all members of our target

marketarebetweentheagesof25and 60,andhaveamoderatetosizabledisposable income.

Our Products

Our company willbedealing inthemanufacturing of 3products.

Theyare:

1. Milk Chocolate

2.Fruit&NutChocolate

3. Plain Chocolate

Ingredientsof MilkChocolate

Sugar,FullCreamMilkPowder,VegetableFat,Emulsifiers,Flavors,WholeCow’sMilk,
CocoaButter.

23
Recipeformilkchocolate

➢Takeonecup of powdered sugar, one cupof milk powder.

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

Ingredientsof Fruit &Nut

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

Fat,Emulsifiers,Flavors.

24
Recipeforfruit &nut chocolate

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

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

25
Recipeforplainchocolate

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

26
Marketing Plan

Economics

Totalsizeof chocolatemarket is33000 tonnes

Trendsin Consumer Preferences

➢Therange and varietyof chocolatesavailable in malls seemsto begrowingdayby day,

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

Barrierstoentry

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

Overcoming theBarrierstoentry

➢To overcomethebarrier of hugestartup costsour machinerywould be taken for

leasefor firstfewyearsof business.
➢Marketingof our products would beon thebasisgood qualityand healthyproducts to
providea competitive advantage.

Product

From customer’spointof view, chocolateistheproductwhich showstheir impulse

buyingbehavior. Customersare lookingfor lowpriced chocolatesandalso itshouldhave
good taste.
Featuresandbenefits

Milk chocolate

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

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

27
Fruit N Nut chocolate

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

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

Plainchocolate

Magnesium.

hypertension.

Competitors

Niche

Our niche marketwould be thechildren andyoung generation aschocolate ismostlyliked

bychildren and youngsters.

Marketing strategyfornichemarket

qualityand healthychocolatesare thefactorson which marketingwillbedone.

Promotion

28
Through pagesand accounton SocialNetworkingSites(Facebook & Twitter)

Distributionchannels

Our products would bedistributed through channelslikewholesalers, retailersandour own

salesforce.

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

Operational Plan

Production

Theproductwillbe manufacturedby FullAutomaticChocolateProductionLine(QH200), withthis

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

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

added thismachine isappropriate

.This machinecanproduce100-300kgchocolates perhour.Itcanproducechocolates in

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

Manufacturingprocess

Chocolateproduction ishighly sophisticatedcomputercontrolledprocesswithmuchofthe

newspecialistmachinery.Machineslike aschocolatecoolingtunnels,enrobingmachines,
coatingmachines, mouldingmachines.

Chocolateprocessing:

Production flowof chocolate

Cleaning

29
Whenseedsarrivetofactory they arecarefully selectedandcleanedby passingthrougha
beancleaning machine that removes extraneous materials. Different bean varieties
are blended toproduce the typicalflavor of chocolateof particular producer. Then
thebean shells are crackedand removed. Crushed cocoabeansarecalled nibs.

R
o
a
s
t
i
n
g

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

.
G
r
i
n
d
i
n
g

Theroastednibs aremilledthroughaprocessthatliquefies thecocoabutterinthenibsand

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

Coco
aPres
sing

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

28i
Mixingand
Refining

Ingredients,like cocoa mass,sugar,cocoabutter, flavoringsandpowderedor

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

Conching isaflavourdevelopmentprocessduring whichthechocolateisputunder

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

chocolatewithalayerofcocoabutter. Theresulting chocolatehasasmoother, mellower

flavor.

Temperingand
Moulding

The chocolate then undergoesa tempering melting and cooling processthat

createssmall, stablecocoa butter crystalsin the fluid chocolate massand
isdeposited intomouldsof different forms.Properlytempered chocolate will result
in a finished product that hasa glossy,smoothappearance.

Themouldedchocolateenterscontrolled cooling
tunnelstosolidifythepieces.Depending on
thesizeofthechocolatepieces,thecoolingcycletakesbetween20minutestotwohours.
Fromthecoolingtunnels,thechocolateispackagedfordeliverytoretailersandultimately
into thehandsof consumers.

29
Ourmanufacturing unitwillbelocatedin
Adipur.KandlaPortandMundraPortarealsonear toAdipursoitalsohelps
infuture,ifwewantChocolates tobeexported.Labouriseasily
availablesincetherearemany suchlabourcontractoravailableinGandhidham.Wewillget
skilledandunskilledlabourasperourneed.Technicalpeoplearealsoavailableeasilyto
monitor thequalityand consistencyof
ourproducet

30
Mumbai, Kolkota and Chennai). The corporate office is in Mumbai.

Currently Cadbury India operates in three sectors viz. Chocolate Confectionery, Milk

Food Drinks and in the Candy category.

In the Chocolate Confectionery business, Cadbury has maintained its undisputed

leadership over the years. Some of the key brands are Cadbury Dairy Milk, 5 Star,

Perk, Éclairs and Celebrations. Cadbury enjoys a value market share of over 70% -

the highest Cadbury brand share in the world! Their flagship brand Cadbury Dairy

Milk is considered the "gold standard" for chocolates in India. The pure taste of CDM

defines the chocolate taste for the Indian consumer.

In the Milk Food drinks segment their main product is Bourn vita - the leading Malted

Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is

the undisputed leader.

The Cadbury India Brand Strategy has received consistent support through simple but

imaginative extensions to product categories and distribution. A good example of this

is the development of Bytes. Crispy wafers filled with coca cream in the form of a

bagged snack, Bytes is positioned as "The new concept of sweet snacking". It delivers

the taste of chocolate in the form of a light snack, and thus heralds the entry of

31
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 KeralaAgricultureUniversity to

undertake cocoa research and released clones, hybrids that improve the cocoa yield.

Today, Cadbury is poised in its leap towards quantum growth and new categories of

business, namely gums, mints, snacking and gifting. It is a part of the Cadbury

Schweppes Group, world's No.1 Confectionery Company.

CADBURY WORLD WIDE

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

strong regional presence in beverages in the Americas and

Australia.

With origins stretching back over 200 years, today their products - which include

brands such as Cadbury, Schweppes, Halls, Trident, Dr Pepper, Snapple, Trebor,

Dentyne, Bubblicious and Bassett - are enjoyed in almost every country around the

world. We employ around 60, 00people.

Their heritage starts back in 1783 when Jacob Schweppes

perfected his process for manufacturing carbonated mineral water

in Geneva, Switzerland. And in 1824 John Cadbury opened in

Birmingham selling cocoa and chocolate.

32
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:

❖ Chocolates

❖ Snacks

❖ Beverages

❖ Candy

SNACKS:

Bytes

BEVERAGES

Bourn vita

33
CANDY

Halls

CHOCOLATES

Dairy Milk

5 Star

Perk

Celebrations

Temptation

Éclairs

Gems

DAIRY MILK

The story of Cadbury Dairy Milk started way back in 1905 at Bourneville, U.K., but

the journey with chocolate lovers in India began in 1948.

The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of

Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens

& adults.

34
Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie,

chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in1, a

delightful combination of milk chocolate and white chocolate. Giving consumers an

exciting reason to keep coming back into the fun filled world of Cadbury.

Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate

market.

5 STAR

the second largest after Cadbury Dairy Milk with a market share of 14%, Cadbury 5

Star moves from strength to strength every year by increasing its user base.

Launched in 1969 as a bar of chocolate that was hard outside with soft caramel nougat

inside, Cadbury 5 Star has re-invented itself over the years to keep satisfying the

consumers taste for a high quality & different chocolate eating experience.

One of the key properties that Cadbury 5 Star was associated with was its classic Gold

co lour. And through the passage of time, this was one property that both, the brand

and the consumer stuck to as a valuable association.

More recently, to give consumers another reason to come into the Cadbury 5 Star

fold, Cadbury 5 Star Crunchy was launched. The same delicious Cadbury 5 Star was

now available with a dash of rice crispies.

35
PERK

Cadbury launched Perk in 1996. With its light chocolate and wafer construct, Cadbury

Perk targeted the casual snacking space that was dominated primarily by chips &

wafers.

With the rise of more value-for-money brands in the wafer chocolate segment,

Cadbury Perk unveiled two new offerings - Perk XL and XXL. In 2004, with an

added dose of 'Real Cadbury Dairy Milk' and an 'improved wafer', Perk became even

more irresistible

CELEBRATIONS

Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai

and dry- fruits during festive seasons.

Cadbury Celebrations is available in several assortments: An assortment of chocolates

like 5 Star, Perk, Gems, Dairy Milk and Nutties and rich dry fruits enrobed in

36
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 flavors’ and the

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

TEMPTATION

Cadbury Temptations is a range of delicious premium chocolate in five

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

Forest and Old Jamaica.

CONSUMER PREFERENCE

All marketing starts with the consumer. So consumer is a very important person to a

marketer. Consumer decides what to purchase, for whom to purchase, why to

purchase, from where to purchase, and how much to purchase. In order to become a

successful marketer, he must know the liking or disliking of the customers. He must

also know the time and the quantity of goods and services, a consumer may purchase,

so that he may store the goods or provide the services according to the likings of the

37
consumers. Gone are the days when the concept of market was let the buyer’s beware

or when the market was mainly the seller’s market. Now the whole concept of

consumer’s sovereignty prevails. The manufacturers produce and the sellers sell

whatever the consumer likes. In this sense, “consumer is the supreme in the market”.

As consumers, we play a very vital role in the health of the economy local, national or

international. The decision we make concerning our consumption behavior affect the

demand for the basic raw materials, for the transportation, for the banking, for the

production; they effect the employment of workers and deployment of resources and

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

Preference (or "taste”) is a concept, used in the social sciences, particularly

economics. It assumes a real or imagined "choice" between alternatives and the

possibility of rank ordering of these alternatives, based on happiness, satisfaction,

gratification, enjoyment, utility they provide. More generally, it can be seen as a

source of motivation. In cognitive sciences, individual preferences enable choice of

objectives/goals.

The study of the consumer preference not only focuses on how and why consumers

make buying decision, but also focuses on how and why consumers make choice of

the goods they buy and their evaluation of these goods after use. So for success of any

company or product promotion it is very necessary to depart its concentration towards

consumer preference.

38
MAJOR PLAYERS IN THE CHOCOLATE MARKET OF
INDIA
As we know that the chocolate market in India is estimated to be around 30800 tones.

The market is presently having around 80 million consumers and they are mainly

located in the urban areas. The market is dominated by two major players namely:

Nestle India Ltd & Cadbury India Ltd which together account for 95% of the total

chocolate market. The rest 5% is held by other players (including Amul and

unorganized brands). Market growth in the chocolate segment has hovered between

10 to 20%. The average growth rate of the chocolate market in the coming years will

be around 14-15% that shows a tremendous potential for future growth.

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

case of chocolates is Cadbury with a market share of 53% as compared to that of

Nestle, which is 42%.

5%

42%
53%

Nestle Cadbury Others

[Market Shares are for the year 2006]

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

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

39
 CADBURY

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

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

business developed into an international giant. Defining the taste of chocolate,

Cadbury began its Indian operations as a trading concern in 1947. With brands like

Dairy Milk, Gems, 5 Star and Perk and now additionally with products like

Celebrations, Bytes and Temptations, Cadbury has, in the last five decades, become

one with the word ‘chocolate’ in India. Cadbury Dairy Milk is Cadbury India’s

biggest brand and is synonymous with chocolates in India.

MAJOR CHOCOLATE BRANDS OF CADBURY

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

from there onwards it made a quick impact becoming the market leader. For

kids across India, CDM is synonymous with the word chocolate. It is the

largest chocolate brand in India contributing around 25% to Cadbury India’s

total revenues. It is a classic example of a brand coming to symbolize a

product

Category. Cadbury has been the preferred

gift for children as well as for adults too.

Cadbury Dairy Milk is available in the following flavours:

✓ Caramelo

✓ Fruit and Nut

✓ Roast Almond

40
✓ Crackle

✓ Perk- Another good chocolate in the kitty of Cadbury India

Ltd is Perk, a wafer snack that was launched by Cadbury in

the year 1995.

✓ 5 Star- Launched in 1969 as a bar of chocolate that was

hard outside with soft caramel nougat inside, Cadbury 5 Star

has re-invented itself over the years to keep satisfying the

consumers taste for a high quality & different chocolate

eating experience.

✓ Temptations- The Cadbury Temptations range is available in

5 delicious flavour variants - Roast Almond Coffee, Honey

Apricot, Mint Crunch, Black Forest and Old Jamaica. With

its international quality chocolate Temptations soon became a

popular brand for "chocoholics".

41
 ✓ Bournville- Cadbury India Ltd. has announced the launch of

Bournville Fine Dark Chocolate, the first dark chocolate product from the

much-loved Cadbury India basket.

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

Cadbury, which was 70%. In order to counteract this competition from Cadbury,

Nestle introduced Munch, an enrobed waferchocolate in the year 2002 and in the

shortest span of one and a half year i.e. in the year 2001, Nestle was able to grab the

market of Perk and Nestlé’s market share rose to 30% in comparison to 65% of

Cadbury.Cadbury got another major setback in the year 2003 after the launch of

Milkybar Starz and Milkybar Choo, the largest brand in the India’s white chocolate

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

Cadbury.

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

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

introduced small packs of chocolates at an affordable price such as Chotu munch,

Milky bar choo strawberry at Rs2 and also brought down the prices of Kitkat from Rs

12 to Rs10, which a common man can easily afford and this rose the volumes of

Nestle chocolates and today Nestle is having a market share of 42% as against 53% of

Cadbury.

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

with attractive packaging and promotions, Nestle has been able to double its market

share in just 5 years from 2001 to 2006 and is giving tough competition to Cadbury in

its all varieties of chocolates.

42
Consumer goods giant Hindustan Lever has just announced a foray into the business

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

diversification plans of cigarette major, ITC. Both hope to use the confectionery foray

to pep up flagging growth rates in their core businesses, thus putting their sizeable

cash flows to better use.

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

seem more promising than the conventional FMCG categories such as toilet soaps or

detergents. While toilet soaps and detergents already reach over 90 per cent of the

households, both chocolate and sugar confectioneries have abysmally low penetration

levels.

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

Indian households in 2000. On the other hand, sugar-boiled confectionery reaches 15

per cent of the households, leaving ample room for growth. Even considering the

urban market alone, the category reaches just 22 per cent of the urban consumers.

This category, therefore, has considerable potential to grow before it reaches

saturation point -- as have traditional FMCG products such as soaps and detergents.

Chocolates and sugar-boiled confectionery boast of even lower penetration levels than

biscuits, which reach 56 per cent of the households.

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

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

boiled candy, toffees and other sugar-based candies, is the largest of the segments and

valued at around Rs 2,000 crore. The organised segment is dominated by Nutrine

Confectionery and Parry Confectionery, apart from the Indian arms of MNCs such as

Perfetti India and Warner Lambert.

43
Cadbury India and Nestle India also made a foray into this segment five years ago and

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

44
 CHOCOLATES AND CONFECTIONARIES

1. Nestle KITKAT

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

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

KIT KAT is one of the most successful brands in the world and every year

over 12 billion NESTLÉ KIT KAT fingers are consumed around the globe.

2.Nestle Munch

NESTLÉ MUNCH is wafer layer covered with delicious choco layer. NESTLÉ

MUNCH is so crisp, light and irresistible that you just “Can't stop MUNCHING”.

NESTLÉ MUNCH is the largest selling SKU in the category!

3.Nestle Milkybar

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

launched in January 2006 with a Calcium Rich recipe, NESTLÉ

MILKYBAR is a favorite with parents to treat their kids with.

4. Nestle Milk Chocolate

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

just love it!

5. Nestle Bar-One

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

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

45
Action'.

6.Nestle Éclairs

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

NESTLÉ Éclairs are enjoyed by billions of consumers every year.

NESTLÉ Chocolate Éclairs are a delicious delight with luscious creamy

chocolate inside. It offers a chocolate eating experience at a candy price

point!

NESTLÉ MILKYBAR Éclairs are a delightful Éclairs with a creamy milky chocolate

center - Big bite, white inside!

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

shell!

7. POLO

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

Mint with the hole'.

46
Here are the prices of Nestlé’s various chocolate brands:

NAME SIZE PRICE

BAR ONE 25g Rs 5

BAR ONE 40 g Rs 10

CHOTU MUNCH 5g Rs 2

MUNCH 36g Rs 5

KIT KAT 17.5g Rs 5

KIT KAT 36g Rs 10

NESTLE MILK 13.5g Rs 5

CHOCOLATE

NESTLE MILK 27g Rs 10

CHOCOLATE

MILKY BAR CHOO 20g Rs 5

MILKY BAR STARZ 40g Rs 10

47
 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 their products, product attributes, potential consumers benefit, how to use,

maintain or even dispose of the product and new ways of behaving that will satisfy

not only the consumer’s needs, but the marketer’s objectives.

The scope of my study restricts itself to the analysis of consumer preferences,

perception and consumption of Cadbury and Nestle Chocolates. There are many other

brands of chocolates available but my study is limited to two major players of

chocolates leaving behind the others. The scope of my study restricts itself to

“Meerut”.

48
 OBJECTIVES OF THE STUDY

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

and Cadbury chocolates. Objectives of the study are:

❖ To know about the level of customer satisfaction associated with the

product and the customer preference level.

❖ To increase customer satisfaction and recapture the market share by

fulfilling the customer needs.

❖ To study the factors affecting the consumption pattern.

49
 CHAPTER -2

RESEARCH
METHODOLOGY

50
 RESEARCH METHODOLOGY

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

information collected from primary sources. After the detailed study, an attempt has

been made to present comprehensive analysis of consumption of Cadbury and nestle

chocolates consumed by the people. The data had been used to cover various aspects

like consumption, consumer’s preference and customer’s satisfaction regarding

Cadbury and Nestle chocolates. In collecting requisite data and information regarding

the topic selected, I went to the residents of Delhi and collected the data. After being

fully aware of the objectives of the study and the research problem, it was found out

that it was Descriptive research.

Survey design:

The study is a cross sectional study because the data were collected at a single point

of time. For the purpose of present study a related sample of population was selected

on the basis of convenience.

Sample Size and Design:

A sample of 100 people was taken on the basis of convenience. The actual consumers

were contacted on the basis of random sampling.

Sample Area:

Localities of Delhi Distt. Delhi.

Research Period:

Research work is only carried for 3 weeks.

51
Research Instrument:

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

included were open ended, dichotomous and offered multiple choices.

Data Collection:

The data, which is collected for the purpose of study, is divided into 2 bases:

❖ Primary Source:The primary data comprises information survey of

“Comparative study of consumer behavior towards Nestle and Cadbury

chocolates”. The data has been collected directly from respondent with the

help of structured questionnaires.

❖ Secondary Source:The secondary data was collected from internet,

References from Library.

Data Analysis:

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

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

Swot analysis of Cadbury

SWOT Analysis of R&D in Cadbury:

Strengths:

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

market share.

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

 Strong manufacturing competence, established brand name and leader in

innovation.

52
  Advantage that it is totally focused on chocolate, candy, chewing gum, unique

understanding of consumer in these segments.

 Successfully grown through its acquisition strategy. Recent acquisitions,

including Adams, 2003, enabled it to expand into important markets like the

US market.

. Weaknesses:

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

other competitors e.g. nestle have a more diverse product portfolio, where

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

 Other competitors have greater international experience - Cadbury has

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

understanding of the new emerging markets compared to competitors.

Opportunities:

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

markets of China, Russia, India, where populations are growing, consumer

wealth is increasing and demand for confectionery products is increasing.

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

acquisition activity in recent years. Opportunities exist to increase share

through targeted acquisitions.

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

costs. Cadbury Fuel for Growth and cost efficiency programmes seek to bring

53
 cost savings by: 1. Moving production to low cost countries, where raw

materials and labour is cheaper.

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

procurement, and wise investment in R&D.

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

preferences - healthier snacks with lower calories need to be developed. R&D

and product launches have led to sugar-free & center filled chewing gum

varieties and Cadbury premium indulgence treat. Low-fat, organic and natural

confectionery demand appears strong.

Threats:

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

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

locations.

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

Aggressive price and promotion activity by competitors - possible price wars

in developed markets.

 Social changes - Rising obesity and consumers obsession with calories

counting. Nutrition and healthier lifestyles affecting demand for core Cadbury

products.

Cadbury Marketing SWOT Analysis:

Strengths:

54
  Key US soft drinks player – the Dr Pepper Snapple Group has inherited a

position as a leading soft drinks player in the US, boasting high-profile brands

such as those which comprise its name and the likes of 7-Up and Schweppes.

 Independent drinks business – following the demerger from Cadbury

Schweppes, the sole focus of the new Dr Pepper Snapple Group is soft drinks,

a status that should allow it to better target growth in the sector.

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

largest independent distribution network in the US and a reduced reliance on

Coca-Cola Enterprises and Pepsi Bottling Group for securing access to the

market for its brands.

Weaknesses:

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

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

floundering US carbonates market. As such, it is exposed to fluctuations in

this marketplace.

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

Group finds itself operating without financial backing of what was the much

larger Cadbury Schweppes group, which could also rely on confectionery

revenues.

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

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

and PepsiCo, which provides a smaller base from which to rapidly expand and

diversify its product offer.

55
  Geographic constraints – owing to the multiple franchisee ownership of core

brands such as Schweppes, Dr Pepper and 7-Up, the Dr Pepper Snapple Group

is restricted in terms of international expansion, which given its reliance on the

US, is a definite weakness.

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

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

financial backing and brand exposure to generate revenues as was available

before.

Opportunities:

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

exploit growth in RTD tea in the US in the short term as consumers continue

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

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

US are growth opportunities for the Dr Pepper Snapple Group, with the shift

away from unhealthily perceived carbonates benefiting better for you

beverages.

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

benefit from a bolder approach to its functional drinks portfolio. Beverages

which claim to lower blood pressure levels, make the skin beautiful and

increase fat burning are among the latest to emerge on the market.

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

marked growth in a number of non-carbonates categories in Australia, in

particular bottled water, functional drinks and RTD tea, with all three set to

outperform overall soft drinks.

56
Threats:

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

market is set to contract in the short term, as consumers continue to switch to

healthier soft drinks. This malaise will put pressure on margins at the

company.

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

characterized by a high level of consolidation, with the top rankings held by

the major companies The Coca-Cola Company, PepsiCo and Danone. As these

companies are stretching their operations globally, this will pose challenges

for the Dr Pepper Snapple Group in terms of entering new markets and

building out its core sector presence.

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

and fuels are expected to continue to rise in the short term, a development

which is certain to place greater downward pressure on the company’s profit

margins and threaten development plans.

57
 CHAPTER -3
DATA ANALYSIS OF
THE STUDY

58
 DATA ANALYSIS OF THE STUDY

1. LIKING FOR THE CHOCOLATES

Table: 1

Liking for the Chocolate Yes No

Number of Respondents 62 3

LIKING FOR THE CHOCOLATES

70 62
60
50
Number of Persons
40
YES
30
NO
20
10 3
0
Response

Chart: 1

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

of 65 people 62 people likes to eat chocolate while only 3 people don’t prefer to eat

chocolate.

2. DIFFERENT AGE GROUPS

59
Table: 2

AGE GROUPS 8-13 year 14-17 year

NUMBER OF 35 30

RESPONDENTS

AGE GROUPS

AGE GROUPS

35
35
34
33
NUMBER OF
RESPONDENTS 32
31 30 8-13 year
30
14-17 year
29
28
27
AGE GROUPS

Chart: 2

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

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

60
3. PREFERENCE ACCORDING TO AGE GROUPS

Table: 3

AGE GROUPS

BRANDS 8-13 14-17

CADBURY 29 25

NESTLE 19 18

NO CONSUMTION 1 2

PREFERNCE ACCORDING TO AGE GROUP

29
30 25
NUMBER OF
CONSUMERS 19 18
20

10 CADBURY
1 2 NESTLE
0
8-13 14-17 NONE
Year Year

AGE GROUP

Chart: 3

According to the above analysis it is concluded that people of different age groups

prefer mostly Cadbury brand of chocolate while Nestle brand is less preferred.

61
4. BRAND PREFERENCE

Table: 4

BRANDS PREFERENCE BY CONSUMERS

CADBURY 54

NESTLE 37

BOTH 29

Brand Preference

60 54
50

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

0
Chocolate Brands

Chart: 4

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

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

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

62
5. PURCHASE OF CHOCOLATES

PURCHASE OF CADBURY CHOCOLATES

Table: 5

CADBURY CHOCOLATES

SUB- BRANDS NUMBER OF RESPONDANTS

DAIRY MILK 44

5 STAR 34

PERK 18

CELEBRATIONS 8

TEMPTATIONS 5

Cadbury Chocolates Purchased By People

50 44

40 34 Dairy Milk

30 5-Star
Number of Persons
18
20 Perk
8
10 5 Celebrations

0 Temptation

Sub - brands of Cadbury Chocolates

Chart: 5

From the above analysis of given sample of 54 respondents who eat Cadbury

chocolates it is concluded that mostly people has purchased Dairy Milk sub-brand of

Cadbury while Temptation is least purchased by the people.While surveying we have

found that many people are not aware of temptation chocolate.

63
6. PURCHASE OF NESTLE CHOCOLATES

Table: 6

NESTLE CHOCOLATES

SUB- BRANDS NUMBER OF RESPONDANTS

KIT KAT 25

MUNCH 24

MILKY BAR 19

BAR- ONE 9

MILK CHOCOLATE 13

Nestle Chocolates Purchased by People

25
24
25
19
20
Kit Kat

Number of Persons
15 13 Munch
9 Milky Bar
10

Bar One
5
Milk Chocolate
0
Sub brands of Nestle Chocolates

Chart: 6

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

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

Kat followed by Munch and Milky Bar. While surveying we have found that many

people are not aware of Bar One.

64
7. OVERALL PURCHASE OF CHOCOLATES

Table: 7

OVERALL PURCHASE OF SUB- BRANDS OF CHOCOLATES

SUB-BRANDS PERCENTAGE OF PURCHASE
DAIRY MILK 22.11
5 STAR 17.08
PERK 9.04
CELEBRATIONS 4.02
TEMPTATIONS 2.51
KIT KAT 12.56
MUNCH 12.06
MILKY BAR 9.54
BAR ONE 4.52
MILK CHOCOLATE 6.52
Sub brands of Chocolates purchased by people

Dairy Milk
5-Star
4%
7% Perk
22% Celebrations
10%
Temptation
12% Kit Kat
17%
Munch
13%
9% Milky Bar

2% 4% Bar- one
Milk Chocolate

Chart: 7

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

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

people.

65
8. INFLUENCING FACTORS DURING PURCHASE

Table: 8

FACTORS

FLAVOUR/TASTE

Very important Important Normal Least None

important

42 19 1

flavour/taste

50

40 Very Important

30 Important

20 Normal

10 least Important

0 None

INFLUENCING FACTORS DURING PURCHASE

PRICE

Very important Important Normal Least None

important

15 13 23 1 10

price

25

20 Very Important

15 Important

10 Normal

5
least Important
0
None
INFLUENCING FACTORS DURING PURCHASE

66
10. QUALITY

Very important Important Normal Least None

important

13 22 16 2 9

Quality

25

20 Very Important

15 Important

10 Normal

5
least Important
0
None
INFLUENCING FACTORS DURING PURCHASE

PACKAGING

Very important Important Normal Least None

important

19 18 12 6 7

Packaging

20
Very Important
15
Important
10
Normal
5
least Important
0
None
INFLUENCING FACTORS DURING PURCHASE

67
11. FORM

Very important Important Normal Least None

important

15 13 16 9 9

Form

20
Very Important
15
Important
10
Normal
5
least Important
0
None
INFLUENCING FACTORS DURING PURCHASE

BRAND

Very important Important Normal Least None

important

21 22 10 3 6

Brand

25

20 Very Important

15 Important

10 Normal

5
least Important
0
None
INFLUENCING FACTORS DURING PURCHASE

68
12. IMAGE

Very important Important Normal Least None

important

18 18 13 4 9

Image

20
Very Important
15
Important
10
Normal
5
least Important
0
None
INFLUENCING FACTORS DURING PURCHASE

COLOR

Very important Important Normal Least None

important

28 12 12 5 5

Color

30
25 Very Important
20
Important
15
10 Normal

5 least Important
0
None
INFLUENCING FACTORS DURING PURCHASE

69
13. SHAPE

Very important Important Normal Least None

important

18 12 10 6 16

Shape

20
Very Important
15
Important
10
Normal
5
least Important
0
None
INFLUENCING FACTORS DURING PURCHASE

QUANTITY

Very important Important Normal Least None

important

18 22 6 6 10

Quantity

25

20 Very Important

15 Important

10 Normal

5
least Important
0
None
INFLUENCING FACTORS DURING PURCHASE

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

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

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

chocolate.

70
14. FACTORS GIVING MOST SATISFACTION TO CONSUMERS

FACTORS

FLAVOUR/TASTE

Very satisfied Satisfied Normal Least satisfied Can’t say

34 18 8 1 1

Flavour/Taste

40

30 Very Satisfied

20 Satisfied

10 Normal

0 Least Satisfied
FACTORS GIVING MOST SATISFACTION TO CONSUMERS
Can't Say

PRICE

Very satisfied Satisfied Normal Least satisfied Can’t say

13 27 20 0 2

Price

30

Very Satisfied
20
Satisfied
10
Normal

0 Least Satisfied
FACTORS GIVING MOST SATISFACTION TO CONSUMERS
Can't Say

71
15. QUALITY

Very satisfied Satisfied Normal Least satisfied Can’t say

20 13 18 4 7

Quality

20

15 Very Satisfied

10 Satisfied

5 Normal

0 Least Satisfied
FACTORS GIVING MOST SATISFACTION TO CONSUMERS
Can't Say

PACKAGING

Very satisfied Satisfied Normal Least satisfied Can’t say

19 22 13 7 4

Packaging

25
20
Very Satisfied
15
Satisfied
10
Normal
5
Least Satisfied
0
FACTORS GIVING MOST SATISFACTION TO CONSUMERS Can't Say

72
16. FORM

Very satisfied Satisfied Normal Least satisfied Can’t say

18 16 16 5 7

Form

20

15 Very Satisfied

10 Satisfied

5 Normal

0 Least Satisfied
FACTORS GIVING MOST SATISFACTION TO CONSUMERS
Can't Say

BRAND

Very satisfied Satisfied Normal Least satisfied Can’t say

26 17 13 3 3

Brand

30

Very Satisfied
20
Satisfied
10
Normal

0 Least Satisfied
FACTORS GIVING MOST SATISFACTION TO CONSUMERS
Can't Say

IMAGE

Very satisfied Satisfied Normal Least satisfied Can’t say

18 16 17 7 4

73
 Image

20

15 Very Satisfied

10 Satisfied

5 Normal

0 Least Satisfied
FACTORS GIVING MOST SATISFACTION TO CONSUMERS
Can't Say

COLOR

Very satisfied Satisfied Normal Least satisfied Can’t say

24 13 11 10 4

color

25
20 Very Satisfied
15
Satisfied
10
5 Normal

0 Least Satisfied

FACTORS GIVING MOST SATISFACTION TO CONSUMERS

Can't Say

SHAPE

Very satisfied Satisfied Normal Least satisfied Can’t say

13 19 14 9 7

Shape

20

15 Very Satisfied

10 Satisfied

5 Normal

0 Least Satisfied
FACTORS GIVING MOST SATISFACTION TO CONSUMERS
Can't Say

74
QUANTITY

Very satisfied Satisfied Normal Least satisfied Can’t say

18 24 8 7 5

Quantity

25
20 Very Satisfied
15
Satisfied
10
5 Normal

0 Least Satisfied
FACTORS GIVING MOST SATISFACTION TO CONSUMERS
Can't Say

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

influenced by flavor/taste followed by quality,brand, price and quantity. Here shape is

not all influencing people while purchasing.

75
 FINDINGS

• CONSUMER RESEARCH:

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

problems. In this I came to know about the consumers need and expectation levels

regarding products and ascertainable levels of consumer satisfaction.

• PRODUCT RESEARCH:

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

wants as to the quality, packing, shape, color, and quantity etc of their favorite

chocolate.

• PRICING RESEARCH:

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

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

expectations and reactions.

• ADVERTISING RESEARCH:

Under this I have concluded that whether the advertisement appeals the consumers or

not. This also includes evaluating and selecting the proper media-mix and measuring

advertising effectiveness.

76
 CHAPTER -4

SUGGESTIONS AND
RECOMMENDATIONS

77
 SUGGESTIONS AND RECOMMENDATIONS

❖ Company should concentrate more on television for advertisement, as mostly

people get attracted through television only.

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

for other ways.

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

should concentrate in this regard also.

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

good flavor/taste with crunch in it for ex:

-chocolate chips

-snacks biscuits

-ice creams

❖ Increase the length of chocolate by squeezing the width of packet & adding

10% extra large.

❖ By acting as sponsor for activities at college level as their product could

directly sell and cash.

❖ By opening a small coffee shop at localities with other products of company

store as nestle does for ex: Nescafe

78
 LIMITATIONS OF THE STUDY

In attempt to make this project authentic and reliable, every possible aspect of the

topic was kept in mind. Nevertheless, despite of fact constraints were at play during

the formulation of this project. The main limitations are as follows:

❖ Due to limitation of time only few people were selected for the study. So the

sample of consumers was not enough to generalize the findings of the study.

❖ The main source of data for the study was primary data with the help of self-

administered questionnaires. Hence, the chances of unbiased information are

less.

❖ People were hesitant to disclose the true facts.

❖ The chance of biased response can’t be eliminated though all necessary steps

were taken to avoid the same.

❖ Due focus is made on particular age group.

79
CHAPTER -5
CONCLUSION

80
 CONCLUSION

A survey of the people has been conducted to know the liking pattern of the

two products Cadbury and Nestle. It is observed that overall people like to eat

Cadbury brand rather than Nestle. It is concluded that mostly people preferred

Dairy Milk of Cadbury due to its flavor/taste, low price, quality and image and

due to its hard form. Some people often like to have a chocolate with good flavor,

quality and crunchiness so they are going towards Kit Kat and Munch of Nestle

due to its taste and crunchiness.

It is thus concluded from the facts collected that mostly people refer to buy big

pack of their favorite chocolate, and sometimes some of them go for small and

family pack.

81
BIBLIOGRAHY

82
 BIBLIOGRAHY
Books

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

• Kothari C R, Research Methodology Methods & techniques, New Age

International Publishers ,2nd Edition,2004

• Kotler Philip, Marketing Management Analysis, planning Implementations

and control, Pearson Education 12th Edition

Websites

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

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

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

❖ http://www.cadburyindia.com

❖ http://www.chocolatereview.co.uk

❖ http://www.nestle.com

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

83
 QUESTIONNAIRE

PROJECT REPORT ON CONSUMER BEHAVIOUR TOWARDS NESTLE

AND CADBURY CHOCOLATES

Que1. Do you eat chocolate?

Yes No

Que2. Which brand of chocolate do you prefer?

Cadbury Nestle

Que3. Which sub-brand you have purchased?

Cadbury Nestle

Dairy Milk Kit Kat

5Star Munch

Perk Milky Bar

Celebrations Bar-One

Temptation Milk Chocolate

84
 Que4. How much importance do you give to the following

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

column)

Factors Very Important Normal Least None

Important Important

Flavor/taste

Price

Quality

Packaging

Form

Brand

Image

Color

Shape

Quantity

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

chocolate? (Tick in the desired column)

Factors Very Satisfied Normal Least Can’t Say

Satisfied Satisfied

Flavor/taste

Price

85
Quality

Packaging

Form

Brand

Image

Color

Shape

Quantity

Que7. Which form of a chocolate do you like?

Hard Nutties

Crunchy Chew

Que8. What pack do you purchase?

Small Big Family Pack

Que9. Which promotional offers attract you most?

Free gifts Price Offer Any other

Que10.Which of these factors affect your purchase?

❖ Advertisement

❖ Suggestion from friends and relatives

86
 ❖ Attractive Display

❖ Doctors Advice

❖ Brand Ambassadors

❖ Ingredients

Que11. Which media of advertisement influence your purchase?

Television Newspapers Brochures

Hoarding Display

Que12. How frequently do you purchase chocolates?

Once in a fortnight daily

Weekly Monthly

Quarterly

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

Below5 5-10 10-20

20-30 Above 30

87
Que14. If your preferred brand is not available for repeat purchases then what will

you do?

❖ Postpone your purchase

❖ Switch over to other brand

❖ Go to the other shop to search for your preferred brand

Que15. If another brand of the same product appears in the market, will you prefer to

stop buying this brand and buy the new brand?

No, not at all I may consider

No, I shall not can’t say

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

continuing to purchase the old brand?

PERSONAL DETAILS

Name:

Address:

Age:

Between 8-13 between 14-17

Gender:
Phone Number:
Education:
Profession:

THANKS

88