19100479 the Final Nestle Research Project 2272

AGrand Project Report

On

STUDY OF CONSUMER PREFERENCE TOWARDS CADBURY AND NESTLE

CHOCOLATES

Good Food, Good Life

SHREEJI DISTRIBUTORSAt Junagadh

Prepared by:Hitesh J. Vachhani (MBA-IV)

Roll No. 82

Project Guide:Mr. Nailesh Limbasiya

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

Submitted to:

1R. K. College of Business Management

Saurashtra University–Rajkot

DECLARATION

I, undersigned Mr. Hitesh Vachhani student of MBA semester IV from R.K.COLLEGE

OF BUSINESS MANAGEMENT, RAJKOT, declare that I have prepared this project

report on “STUDY OF CONSUMER PREFERENCE TOWARDS CADBURY AND

NESTLE CHOCOLATES, (Marketing-officer, Mr.Nilesh Sachaniya, Junagadh), and by

Prof. Dr. N M Khandelwaal (Director) R. K. college of business management.

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

anywhere else.

Date:Place:

Signature


Preface

An Industrial, Business or service organization by taking up a project study is

most important part of our M.B.A course & is must as per the syllabus prescribed

by Saurashtra University. Our MBA course is of administrative and managerial

activity of industrial, Business or service organization. The main objective of this

project study is to help the student to develop ability of research of the products

and practical technique to solve real life problem related to the products.

According to the rules, I have taken my grand project report in SHREEJI

DISTRIBUTORS at junagadh. Our gardeners and professors gives the knowledge

and guidance of nestle to me.

The grand project programmed for student of M.B.A Sam-iv training is near about

two months. Theoretically knowledge and class room discussion is not that much

sufficient for the student, but training give them practical and day to day working

of Nestle

In this grand project report I had tried to analyze the needs of the customers and

suggest them the most suitable product solutions. As well as I also analyzed the

brand awareness among the people.


ACKNOWLEDGEMENT

Every piece of hard work requires the combined efforts and talents of many people. An

ambitious work of this kind, providing analytical review to the subject would have

remained a concept rather than the finished product without cooperation of those who

respondent to our request to contribute. However, I alone is responsible for any

shortcomings remained in this report.

I am very much graceful to our respected Prof. Dr. N.M. KHANDELWAAL(Director)

RK College of Business Management who has enriched my knowledge and gave me a

moral support to do this report. I am also highly thankful to him for showing the right

path and encouraging me for the preparation of this report.

I am very much thankful to Mr. Nilesh Sachaniya & Mr. Vipul Rancch for allowing me

to take training in a reputed Nestle Distributor knows as ‘SHREEJI DISTRIBUTORS’.

I am very much thankful to Mr. Nailesh Limbasiya, (Lecturer of R.K. College of

Business Management), the project work presented in this report is carried out under

supervision and guidance of Mr. Nailesh Limbasiya.

Last but not least, I am thankful to my entire staff member who have helped us directly or

indirectly in preparing this report.


INDEX

SR. NO. CONTAINS PAGE NO.

1 INDUSTRY OVERVIEW 4

2 OVERVIEW OF ORGANIZATION 17

3 RESEARCH METHODOLOGY 34

4 FINDINGS 51

5 SUGGESTIONS 53

6 REFERANCE 55

7 APPENDIX 57


Industry Overview


INDUSTRY OVERVIEW

History of chocolate:

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

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

roasted cocoa beans.

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

treat, chocolate has been a much sought after food.

The Aztec empire

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

aztecs: the drink was described as “ finely ground, soft, foamy, reddish, bitter with chilli

water, aromatic flowers, vanilla and wild bee honey.

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

supplies of cocoa beans from “ tribute” or trade

Don Cortes

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

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

captain general and governor of Mexico.

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

equipment for making the chocolate drink. Soon “chocolate” became a fashionable drink

enjoyed by the rich in Spain.

Chocolate across Europe

An Italian traveler, Francesco carletti, was the first to break the Spanish monopoly. He

had visited Central America and seen how the Indians prepared the cocoa beans and how

they made the drink, and by 1606 chocolate was well established in Italy.


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 pronounce and so corrupted it to the easier “ chocolat” 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 chocolat or chocolate as it became known, was brought to Europe by

Cortez, by this time the conquistadors had learned to make the drink more palatable to

European tastes by mixing the ground roasted beans with sugar and vanilla ( a practice

still continued today), thus offsetting the spicy bitterness of the brew the 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 it’s weight in silver ( if not gold), chocolate was treasure indeed !

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

become popular throughout Europe, in the Spanish Netherlands, Italy, France, Germany

and – in about 1520 – it arrived in England.

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

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

where the wealthy and business community met to smoke a clay pipe of tobacco,

conduct business and socialize over a cup of chocolate.


Back to the America’s

Event’s 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 worlds largest consumers – by far – of both chocolate and

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

The Quakers

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

English civil war and pilgrim fathers fame and a history of chocolate would not be

complete without mentioning their part in it. Some of the most famous names in

chocolate were Quakers, who for centuries held a virtual monopoly of chocolate making

in the English speaking world – fry, Cadbury and row tree are probably the best known.

Its probably before the time of the English civil war between parliament and king Charles

1st that the 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 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.


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.

TheVarieties

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

practically all varieties can be categorised: Criollo and Forastero cocoas.

The pure variety of the Criollo tree is found mainly in its native Equador

and Venezuela. The seeds are of finer quality than those of the Forastero variety.

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

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

10% of the world crop. The remaining 90% is harvested from trees of the Forastero

family, with its many hybrids and varieties. The main growing area is West Africa. The

cocoa tree can flourish only in the hottest regions of the world.

The Harvest

Immediately after harvesting, the fruit is treated to prevent it from rotting.

At fermentation sites either in the plantation or at, collecting points, the

fruit is opened.

Fermentation

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

technique varies depending on the growing region.

Drying

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

Most of this has to be removed.


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

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

Cleaning

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

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

wood, jute fibres, sand and even the finest dust are extracted by powerful

vacuum equipment.

Roasting

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

roasting process, during which the air in the nearly 10 feet high furnaces reaches a

temperature of 130 °C, is carried out automatically.

Crushing and shelling

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

Blending

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

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

developed for different types of cocoa.

Grinding

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

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

heat generated by the resulting pressure and friction causes the cocoa butter

(approximately 50% of the bean) contained in the beans to melt, producing a thick, liquid

mixture.

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

gradually sets: this is the cocoa paste.


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

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

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

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

CocoaButter

The cocoa butter has important functions. It not only forms part of every

recipe, but it also later gives the chocolate its fine structure, beautiful

lustre and delicate, attractive glaze.

Cocoa Powder

After the cocoa butter has left the press; cocoa cakes are left which still contain a 10 to

20% proportion of fat depending on the intensity of compression.

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

several stages and we obtain a dark, strongly aromatic powder, which is

excellent for the preparation of delicious drinks - cocoa. Cocoa paste,

cocoa butter, sugar and milk are the four basic ingredients for making

chocolate. By blending them in accordance with specific recipes the three types of

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

Kneading

In the case of milk chocolate for example, the cocoa paste, cocoa butter, powdered or

condensed milk, sugar and flavouring - maybe vanilla - go into the mixer, where they are

pulverized and kneaded.

Rolling

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

mounted steel rollers rotate in opposite directions. Under heavy pressure

they pulverise the tiny particles of cocoa and sugar down to a size of

approx. 30 microns. (One micron is a thousandth part of a millimetre.)


Conching

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

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

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

conches that it will flatter even the most discriminating palate.

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

troughs in which 100 to 1000 kilograms of chocolate paste at a time can be heated up to

80 °C and, while being constantly stirred, is given a velvet smoothness by the addition of

certain amounts of cocoa butter. A kind of aeration of the liquid chocolate paste then

takes place in the conches: its bitter taste gradually disappears and the flavor is fully

developed. The chocolate no longer seems sandy, but dissolves meltingly on the tongue.

It has attained the outstanding purity, which gives it its reputation.


CONSUMPTION OF CHOCOLATES IN INDIA

Chocolate consumption in India is extremely low. Per capita consumption is around 160

gms in the urban areas, compared to 8-10kg in the developed countries. In rural areas, it

is even lower. Chocolates in India are consumed as indulgence and not as a snack food. A

strong volume growth was witnessed in the early 90’s when Cadbury repositioned

chocolates from children to adult consumption. The biggest opportunity is likely to stem

from increasing the consumer base. Leading players like Cadbury and Nestle have been

attempting to do this by value for money offerings, which are affordable to the masses.


Overview

of

Organizations


OVERVIEW OF ORGANIZATIONS

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 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

Chocolates & Confectionary

MILK PRODUCTS AND NUTRITION:

NESTLE EVERYDAY Dairy Winter

NESTLE EVERYDAY Slim

NESTLE’S EVERTDAY Ghee

NESTLE’S MILK MAID

NESTLE’S Fresh and Natural Dahi

NESTLE’S Jeera Rita

NESTLE’S MILKMAID Fruit Yoghurt

NESTLÉ Milk

NESTLÉ Slim Milk


BEVERAGES:

NESCAFÉ CLASSIC

NESCAFÉ SUNRISE

NESTLÉ MILO

NESCAFÉ 3 IN 1

NESCAFÉ KOOLREZ

PREPARED DISHES AND COOKING AIDS

MAGGI 2-MINUTE NOODELS

MAGGI VEGETABLE ATTA NOODELS

MAGGI DAL ATTA NOODELS

MAGGI RICE NOODELS MAIN

MAGGI SAUCES

MAGGI PIZZA MAZZA

MAGGI HEALTHY SOUPS

MAGGI -HEALTHY SOUPS SANJEEVNI


MAGGI MAGIC CUBES

CHOCOLATES & CONFECTIONARY

NESTLÉ KIT KAT

NESTLÉ KIT KAT LITE

NESTLÉ MUNCH

NESTLÉ MUNCH POP CHOC

NESTLÉ MILKY BAR

NESTLÉ BAR- ONE

NESTLÉ FUNBAR

NESTLÉ MILK CHOCOLATE

POLO POWER MINT

NESTLÉ ECLAIRS


NESTLEKITKAT

are crisp wafer fingers covered with choco 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

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 choco layer. NESTLÉ BAR-ONE

constantly reminds you that it is ‘Time for Action'.


NESTLE Milk Chocolate:

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


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 chocolate was not particularly good: it was coarse and dry and not sweet or

milky enough for public tastes.

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

French,but also the Swiss, renowned for their milk chocolate.

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

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

to produce the chocolate in larger quantities.

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

developed to produce a milk chocolate 'not merely as good as, but better than' the

imported milk chocolate'.

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

was to be Cadbury's top selling brand was launched.

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

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

smooth creamy texture, was ready to challenge the Swiss domination of the milk

chocolate market.


http://www.cadburyindia.com/brands/choco1.asp

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,

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 Bournvita - the leading Malted

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

undisputed leader.

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

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


http://www.cadburyindia.com/brands/conf1.asp

http://www.cadburyindia.com/brands/bev1.asp





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

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

chocolate in the form of a light snack, and thus heralds the entry of Cadbury India into

the growing bagged Snack Market, which has been dominated until now by Salted

Bagged Snack Brands. Bytes was first launched in South India in 2003.

Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India.

For over two decades, it has worked with the Kerala Agriculture University to undertake

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

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

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

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


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 60,00 people.

Their heritage starts back in 1783 when Jacob Schweppe perfected his

process for manufacturing carbonated mineral water in Geneva,

Switzerland. And in 1824 John Cadbury opened in Birmingham

selling cocoa and chocolate.

These two great household names merged in 1969 to form Cadbury Schweppes plc. Since

then they have expanded their business throughout the world by a programme of organic

and acquisition led growth.

Concentrating on their core brands in beverages and confectionery since the 1980s, they

have strengthened their portfolio through almost fifty acquisitions, including brand icons

such as Mott's, Canada Dry, Halls, Trident, Dentyne, Bubblicious, Trebor, Bassett, Dr

Pepper, 7 Up and Snapple.

- It employ 60,000 people in over 200 countries

- Worlds No 1 Confectionery company

- World's No 2 Gums company

- World's No 3 beverage company

Cadbury Brands:

Chocolates


http://www.cadburyschweppes.com/

Snacks

Beverages

Candy

SNACKS:

Bytes

BEVERAGES

Bournvita

CANDY

Halls

CHOCOLATES

Dairy Milk

5 Star

Perk

Celebrations

Temptation

Eclairs

Gems

DAIRY MILK


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

journey with chocolate lovers in India began in 1948.

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

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

adults.

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

chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a

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

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

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

5 STAR

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

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

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

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

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

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

colour. And through the passage of time, this was one property that both, the brand and

the consumer stuck to as a valuable association.

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

Cadbury 5 Star Crunchy was launched. The same delicious Cadbury 5 Star was now

available with a dash of rice crispies.


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 Cadbury


dairy milk chocolate in 5 variants, Almond magic, raisin magic, cashew magic, nut

butterscotch and caramels.

The super premium Celebrations Rich Dry Fruit Collection which is a festive offering is

an exotic range of chocolate covered dry fruits and nuts in various flavours and the

premium dark chocolate range which is exotic dark chocolate in luscious flavours.

TEMPTATION

Ever see people hide away their chocolate since they don’t want to share

it! If you have, then its likely to be a bar of Cadbury Temptations!

Cadbury Temptations is a range of delicious premium chocolate in five

flavours.

Research revealed a niche segment of “ chocoholics” - those exposed to

international chocolates and those who love a variety of chocolates but

possibly find the price of international chocolates too high. Cadbury

Temptations is a range targeted at this segment of discerning chocolate

lovers.

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".



RESEARCH

METHODOLOGY


RESEARCH METHODOLOGY

SR. NO. PARTICULARS

1 RELEVANCE OF STUDY

2 RESEARCH PROBLEM

3 RESEARCH OBJECTIVE

4 RESEARCH DESIGN

5 SCOPE OF THE STUDY

6 DATA COLLECTION

SAMPLING DESIGN

INSTRUMENT

MODE OF DATA COLLECTION

7 LIMITATION OF STUDY

8 DATA ANALYSIS

RESEARCH METHODOLOGY36

R. K. College of Business Management

1. Relevance of the Study

This research is been conducted to survey the product performance and buying behavior

of consumer in selection of chocolates.

The relevance of the study is to survey the product performance and buying behavior of

two famous brands of chocolates – Nestle and Cadbury, which are consumed by people

of all ages. During this research I have interacted with people of Junagadh City. This

research is to know which particular brand of chocolate is most preferred by people of

different age groups.

2. Research Problem

Every research has their own problem and limitation but good researcher have to

overcome that problem by their skill.

In this research problem I would like to understand and analyze about the chocolates

products available at Junagadh and collect the feedback from group of people and I

wanted to know the developments made in direction of chocolates industry.

3. Objective of the study

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

Cadbury chocolates. Objectives of the study are:

The other objective is to know about the customer satisfaction level

associated with the product and the customer preference level.

To increase customer satisfaction and recapture the market share by fulfilling

the customer needs.

To study the factors affecting the consumption pattern.

4. Research Design

For any researcher the research methodology is the most important criteria to decide

before the actual research process starts.


There are many methods for conducting the research some of them are as under;

a) Descriptive vs. Analytical b) Applied vs. Fundamental c) Quantitative vs. Qualitative

d) Conceptual vs. Empirical e) Field setting or laboratory testing research The design of a

research is a plan or a model that helps researcher to conduct a formal investigation and

survey. It is an application of methods and procedures for acquiring the information

needs for getting a desire out come. It decides the sources of data and methods for

gathering data. A good design insures that the information obtained is relevant to the

research question and that it was collected by objectives. Since, research design is simply

the frame work or plan for a study. It is a blue print that of a house devised by an

architect. My approach to research is descriptive and quite specific.

Out of these all research methods the research method, which was most suitable to my

research, was descriptive research because it provides me all the opportunities to cover

the all the aspect that I require to conduct the research and get an appropriate out come.

Descriptive Research:

Descriptive research includes surveys and fact – finding enquires of different kinds.

The major purpose of descriptive research is description of the state of affairs as it

exits at present. In social science and business research we often use the term Ex

post facto research for descriptive research studies. The main characteristic of this

method is that the researcher has no control over the variables; he can only report

what has happened or what is happening.

5. Scope of the Study:

As learning is a human activity and is as natural, as breathing. Despite of the fact that

learning is all pervasive in our lives, psychologists do not agree on how learning takes

place. How individuals learn is a matter of interest to marketers. They want to teach

consumers in their roles as their roles as consumers. They want consumers to learn about

their products, product attributes, potential consumers benefit, how to use, maintain or


even dispose of the product and new ways of behaving that will satisfy not only the

consumer’s needs, but the marketer’s objectives.

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

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

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

behind the others. The scope of my study is also restricts itself to junagadh region only.

There are 2 sources of data i.e.

A) Primary Data

The data, which are collected for the first time, directly from the respondents to the base

of knowledge & belief of the research, are called primary data.

The normal procedure is to interview some people individually or in a group to get a

sense of how people feel about the topic.

So far as this research is concerned, primary data is the main source of information

provided by the respondents.

B) Secondary Data

When the data is collected and compiled in the in a published nature it is called

Secondary data.

So far as this research is concerned internet, many brochures and magazines have been

referred too.

5. DATA COLLECTION

a) SAMPLING DESIGN39

R. K. College of Business Management

It is true that it is very difficult to do research with whole universe. As we know that it is

not feasible to go with population survey because of the numerous Doctors and their

scattered location. So for this purpose sample size has to be determined well in advanced

and selection of the sample also has to be scientific so that it represents the whole

universe.

So far as this research is concerned, the sample size is 100.

b) INSTRUMENT

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

gives more flexibility in terms of data and it has been asked to the responder personally

and have an idea of getting an important unknown data that can be collected through their

behavior.

c) MODE OF DATA COLLECTION

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

SAMPLE UNIVERSE JUNAGADH CITY

SAMPLING TECHNIQUE STRATIFIED RANDOM

SAMPLING

SAMPLE SIZE 100

RESEARCH INSTRUMENT A STRUCTURED FORMATTED

QUESTIONNAIRE

6. 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 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.

DATA ANALYSIS


Que1. Do you eat chocolate?

Anaylsis & interpretation:

Chocolate is a product which is like by the all age group of people. Accourding to the

survey 83% of people says yes they eat chocolate and 17% say no they are not eating

chocolate. May be the reason behind that is they are not eating chocolate on daily or

weakly basis or may be they are eating any other brand of chocolate.

Que2. Which brand of chocolate do you prefer?


PREFER CHOCOLATES?

83%

17%

YES NO

64

36

0

20

40

60

80

PREFERENCE OF BRAND

CADBURY NESTLE

Analysis & Interpretation:

There are many brands available in the market. But the market leaders in India are

basically two brands like Cadbury & Nestle. According to survey 64% of the market is

captured by the Cadbury and only 36% of the market is covered by the Nestle. To capture

the market the company should do more advertising and sales distribution. And also

should maintain quality of the product compare to the competitors.

Que3. Which sub-brand you have purchased?


40

11 9

1 3

0

10

20

30

40

CADBURY

DARYMILK 5 STAR PERK CELEBRATIONS TEMPTATION

NESTLE

12

20

1 2 1

0

5

10

15

20

25

KIT KAT MUNCH MILKY BAR BAR ONE MILK CHOCOLATE


In this survey nestle is having five sub-brands like kitkat, Munch, Milkybar, Barone,milk

chocolates and their consumption are like kitkat 12% ,munch 20 ,milky bar 1% ,bare one

2% ,and milk chocolate 1%. And if we talk about Cadbury the sub-brand of the Cadbury

is dairymilk, 5 star, perk, celebration and Temptation and their consumption are like

dairymilk 40%, 5 star11%, perk9%, celebration1% and Temptation 3%. According to the

survey the highest selling product is Cadbury.

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

CADBURY


30

7

21

42

0

5

10

15

20

25

30

RANKING SUB BRANDS

DARYMILK 5 STAR PERK CELEBRATIONS TEMPTATION

RANKING SUB BRAND

33%

50%

3%11% 3%

KIT KAT MUNCH MILKY BAR BAR ONE MILK CHOCOLATE

Analysis & Interpretation

In this survey I found that the most selling product is Munch the sub-brand of Nestle the

Munch has capture the 50% of the market as compared to the Cadbury product the

highest selling product of Cadbury is Dairy milk which captured the market stake of 30%

which is as compared to Much 20%less which is a good sigh for Nestle and the less

consumption of the Nestle product is Milk bar & Milk Chocolate the market share is only

3% and in Cadbury less selling product are Celebration and Temptation the reason behind

this is they are too Costly to consume. And it can only use occasionally.

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

1 3

96

0

0

20

40

60

80

100

PRICE

VERY IMP. IMPORTANT NORMAL LEAST IMP.


FLAVOUR/TASTE

88%

9% 2% 1%


126 4

78

0

20

40

60

80

PACKAGING


78

126 4

0

20

40

60

80

QUALITY


Analysis & Interpretaion:

Whenever we are consuming any food product our main focus in on the quality and price

in India there is more concentrating on the quality of product rather than other parameters

of the product in this survey I found that the basic concentration of the consumer is on

taste 88% says that they purchase if they like the taste of the product. 96% says if normal

price would be there a taste is good than price dose not matter. 78% of the consumer says

that if they are getting best quality product at nominal price than the packaging is least


important. 78% says that they are mainly seeing the quality of the product if the product

is qualitative than they are ready to pay any price for that product.

Que6. Which form of a chocolate do you like?

FORM OF CHOCOLATE

47

29

18

6

0

10

20

30

40

50

HARD CRUNCHY NUTTIES CHEW

Analysis & interpretation:

Every person have there own taste and preferences towards the eatable product in

chocolates there are four varieties available in the market among this 47% of the

consumer like hard chocolates, 29% of the consumer like crunchy chocolates, 18% of the

consumer like nutties chocolates & only 6% of the consumer like Chew chocolates.


Que7. What pack do you purchase?

73

1710

0

20

40

60

80

PACK PREFERENCE

SMALL BIG FAMILY PACK


The chocolates are available in the market in different packaging like small, big, &

family pack, from the survey we can say that the consumption of the chocolates are more

eaten by the teenage group so they more prefer the small packaging because of there

availability in market is good and most important thing is its very much affordable.

According to the survey 73% are using small pack, 17% are using big pack of the

chocolates, 10% are consuming family pack because of there high price. So we can easily

see that the consumption of small pack is having boom in the market compare to other

packaging.

Que8. Which promotional offers attract you most?

PROMOTIONAL OFFERS

12%

84%

4%

FREE GIFTS PRICE OFFER ANY OTHER



To sell out the product there are many promotions activity conducted by the company to

face the competition the offer give by the company are like free gift, price offer, or any

other scheme. In this 12% are giving the free gift offer (scratch the card scheme), 84%

are directly giving the price offer, and 4% giving the any other kind of scheme.s

Que9.Which of these factors affects your purchase?

69

1 2 0

21

7

0

20

40

60

80

FACTORS AFFECTING PURCHASE

ADVERTISEMENT SUGGESTIONS ATTRACTIVE DISPLAY

DOCTOR'S ADVICE BRAND AMBASSADORS INGREDIANTS


There are many factors affecting at the time of purchase. So company is doing

promotional activities to acquire the desired target of the product. Basically there are six

main type of the promotional activities like 69% of the advertisement, 1% of the

suggestions, 2% of the attractive display, 0%of the doctors advice, 21% of the companies

are using Brand Ambassadors in there advertisement, 7% of the ingredients. So all this

factors are affecting the purchase.

Que10. Which media of advertisement influence your purchase?



In today’s competitive market advertisement is the main tool for selling the product

because every single person is watching or reading the advertisement. So it become easy

to make people aware about the product. So companies are using advertisement media

like 67% of the television adds, 7% of the Hoardings, 3% of the advertisement given on

local as well as national newspapers, & 23% are using display adds.

Que11. If your preferred brand is not available for repeat purchases then what will you do?

ABSENCE OF PREFERED BRANDS

11%

40%

49%

POSTPONE PURCHASE SWITCH OVER SEARCH BRAND



Every person is having there own taste & preferences. Some consumer are compromising

with there taste and preferences and some are not according to the survey 11% of the

consumer are postponing the purchase of the product, 40 % of the consumer are switch

over to any other product, & 49 % will search the product at any other place they don’t

compromise for the same.


Findings


Findings

From the one and half month experience of my research project with SHREEJI

DISTRIBUTORS OF NESTLE AT JUNAGADH. I have come to know lot things and it

has enhanced my knowledge to great extent. I found many things which are well

executed by distributors. Here are some of the key findings given by me are purely based

on my research. It doesn’t have any kind of bias from my side.

They are given as under.

By doing the comparison of Nestle and Cadbury chocolates I have found that the

preference of the chocolates more preferred by the consumer is Cadbury

From the analysis I have found that nestle some brand has covered 50% of the market in

one product (Munch) of the chocolates which is a very good sign for the company.

Through the research I found that consumer is very conscious about the quality of the

product in that matter they are not ready to compromise. And I found both company

product are very qualitative.

In some cases I found that if a product is not available in the market than some consumer

would to switchover to another product or brand.

So from these survey I have found that the consumption of the chocolates are more in

children and teenage group though having any occasion or not having any occasion.

The most selling product of both the company are in small size of chocolates and there

market is 73% because its not much costlier. And also easily available & affordable.


Suggestions


SUGGESTIONS

Chocolates products at Junagadh city are available in comparison to previous years, but

still there is requirement of development in Chocolate products. SHREEJI

DISTRIBUTERS is regarded to be the best service distributors according to Retailer. Due

to increasing overall cost in Chocolate Products everywhere, cost format should be made

as such that it is affordable to each and everyone in the society. In this I also found that if

the demanded brand is not available, so at that time the customers switch over the brand

of the chocolate so, here the company should build up the healthy distribution channel by

which company can attract the customers and company loose the fear from the market.


References


REFERENCES

Web sites:

www.nestle.com

www.nestle.inchocoinfo.com

www. nestle bar-one.com

www.business-standard.com

www.babymilkaction.org

Books:

1. Marketing Management

- Philip Kotler

2. Research Methodology

- C. R. Kothari


http://www.nestle.com/

Appendix



QUESTIONNAIRE

PERSONAL DETAILS

Name:Address:Age:

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

Gender:Phone / Mob. :Profession:

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 Kat5Star MunchPerk Milky BarCelebrations Bar-OneTemptation Milk Chocolate

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

Cadbury Nestle

Dairy Milk Kit Kat5Star MunchPerk Milky BarCelebrations Bar-OneTemptation Milk Chocolate


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

Factors Very Important

Important Normal Least Important

Flavor/tastePriceQualityPackaging

Que6. Which form of a chocolate do you like?

Hard NuttiesCrunchy Chew

Que7. What pack do you purchase?

Small Big Family Pack

Que8. Which promotional offers attract you most?

Free gifts Price Offer Any other

Que9.Which of these factors affects your purchase?

Advertisement Suggestion from friends and relatives Attractive Display Doctors Advice Brand Ambassadors Ingredients

Que10. Which media of advertisement influence your purchase?

Television Newspapers BrochuresHoarding Display

Que11. If your preferred brand is not available for repeat purchases then what will you do?

Postpone your purchase Switch over to other brand Go to the other shop to search for your preferred brand


19100479 the Final Nestle Research Project 2272

Documents

english civil

delicious

promotional

nestl kit

highest selling

cadbury dairy

grand project

promotional