35357589 study of consumer prefarence towards cadbury and nestle chocolate

8/7/2019 35357589 Study of Consumer Prefarence Towards Cadbury and Nestle Chocolate

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STUDY OF CONSUMER PREFERENCE TOWARDS CADBURY AND NESTLECHOCOLATES

A report submitted to Delhi Business School, New Delhi

as a part fulfillment of

MBA+PGP Graduate program (industry integrated) in entrepreneurship andbusiness.

Submitted to:

Keerti Jain

Faculty:

DELHI BUSINESS SCHOOL

Submitted by:

Ratul Bhattacharyya

Roll No:151/9208490197

Batch: spring(09-11)

Semester:2nd

DELHI BUSINESS SCHOOL

dbsdelhi business school

Delhi Business School

B-II/M.C.I.E.,Mathura Road , New Delhi

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DECLARETION

I hereby certify that the work which is beingpresented in the project entitled, ³STUDY OF CONSUMERPREFERENCE TOWARDS CADBURY AND NESTLECHOCOLATES.´ in partial Fulfilment of the requirementsfor the award degree of M.B.A [for D.B.S (New Delhi)], is anauthentic record of my own work .The matter presented inthisProject Report has not been submitted by me for the awardof any other degree of this or any other University.

DATE:

RATUL BHATTACHARYYA

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ACKNOWLEDGEMENT

Concentration, dedication and application are necessary but notsufficient to achieve any goal. Therefore, it is our pleasant duty tooffer our service of acknowledgement to those honourablepersonalities of the department who helped me to follow the path tosuccess for the completion of this project.

Survey is an excellent tool for learning and exploration. Noclassroom routine can substitute which is possible while working in

real situations. Application of theoretical knowledge to practicalsituations is the bonanzas of this survey. Without a propercombination of inspection and perspiration, it¶s not easy to achieveanything. There is always a sense of gratitude, which we express toothers for the help and the needy services they render during thedifferent phases of our lives. I too would like to do it as I really wishto express my gratitude toward all those who have been helpful tomedirectly or indirectly during the development of this project.

I would like to thank my faculty who was always there to helpand guide me when I needed help. His perceptive criticism kept meworking to make this project more full proof. I am thankful to himforhis encouraging and valuable support. Working under him was anextremely knowledgeable and enriching experience for me. I amverythankful to him for all the value addition and enhancement done tome. No words can adequately express my overriding debt of

gratitudeto my parents whose support helps me in all the way. Above all Ishallthank my friends who constantly encouraged and blessed me so astoenable me to do this work successfully.

RATULBHATTACHARYYA

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INTRODUCTION

In this research I have survey the product performance and buying

behaviour of two famous brands of chocolates ± Nestle and

Cadbury,which are consumed by people of all ages. During this research Ihaveinteracted with people of ³Kolkata´. After this research I came to

know how people perceives these products on the variables likeprice,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 theyconsume,whether they buy small, big or family pack. Trend of ongoingchangesin their likings has been shown in the report. In this report I havetriedto explain the entire research and facts productwise.

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THE INDUSTRY SCENARIO

With the entry of multinationals and home companies sprucing uptheir act, the confectionery market is booming. McKinsey & Co. has

estimated the confectionery industry to touch a whopping Rs. 6 500

crore by the year 2008. Till the eighties, the chocolate market was

small and the product category itself was fuzzy. In the eighties,

Cadbury¶s - the virtual monopolist ± had decided to focus its efforts

on making chocolates a distinct category with an identity of its own.And the marketer had sharply positioned its product at children todothat. Hence, chocolates bore an ³Only for kids´ tag, and kept adultsatbay. By the end of the eighties, Cadbury¶s still ruled the roost with

over 80 percent market share. And though several brands - likeAmuland Campco - tried to break into the market, none of them had

succeeded in shaking the leader¶s grip. In fact, Cadbury¶s hadbecomea brand virtually generic to chocolates. Then chocolates were usedtoreward and reinforce positive behaviour and hence werecategorisedas a luxury reserved for special occasions. This was, a starkcontrastto the west where chocolates were snacked on, eaten as mini mealsor just to suppress pangs of hunger. But constant working by players

like Cadbury¶s (re-launch of Cadbury¶s Dairy Milk targeting adults

and as a casual any-time buy) and Nestle towards exploding themyththat chocolates are meant for children only, has resulted in the

segment booming.

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Trends in the Industry

· With socio-economic changes rapidly taking place, the young andnot so young population will lead a new life style and chocolate

eating is definitely going to be widespread and acceptable.· In the industry, both population and family incomes as well asurbanisation are on the increase.· There has been a significant growth in the middle class, with 5.8million people having upgraded to the quoted middle class.· There is quantified data on FMCG usage having increased (NRS-VI& IRS¶98 figures) Thanks to the above reasons the growth in thechocolate market is estimated to be at 22% in 2001. But marketersinthe industry are looking forward to a much higher growth rate, asIndia¶s per capita consumption of chocolates is only 15 Gms.Versus6 Kg in the west.

The Indian Chocolate market can be sliced into four parts.

1. Moulded Chocolate Segment - comprising slab chocolates likeDairy milk chocolates, etc. These are made by pouring theingredientsinto moulds.2. Countline Segment - comprising bars like 5 star, Bar One, Perk,Kit Kat, etc. These have ingredients other then chocolate and areusually Bar shaped, making for chunky bites.3. Choco-Panned Segment - comprising chocolate forms likeButterscotch, Nutties, Tiffins, etc. Panned variety has differentcores/centers which are covered with a layer of chocolate.4. Sugar-Panned Segment - comprising chocolate forms such as

Gems, Chocolate eclairs, etc. These generally have a sugar coatingonthe outside.

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CONSUMER PREFERENCEAll marketing starts with the consumer. So consumer is a veryimportant person to a marketer. Consumer decides what topurchase,for whom to purchase, why to purchase, from where to purchase,

andhow much to purchase. In order to become a successful marketer,hemust know the liking or disliking of the customers. He must alsoknow the time and the quantity of goods and services, a consumermay purchase, so that he may store the goods or provide theservicesaccording to the likings of the consumers. Gone are the days whentheconcept of market was let the buyer¶s beware or when the market

was mainly the seller¶s market. Now the whole concept of consumer¶ssovereignty prevails. The manufacturers produce and the sellers sellwhatever the consumer likes. In this sense, ³consumer is thesupremein the market´. As consumers, we play a very vital role in the healthof the economy local, national or international. The decision wemakeconcerning our consumption behavior affect the demand for thebasic

raw materials, for the transportation, for the banking, for theproduction; they effect the employment of workers and deploymentof resources and success of some industries and failures of others. Thusmarketer must understand this. Preference (or "taste ") is aconcept,used in the social sciences, particularly economics. It assumes arealor imagined "choice" between alternatives and the possibility of

rankordering of these alternatives, based on happiness, satisfaction,gratification, enjoyment, utility they provide. More generally, it canbe seen as a source of motivation. In cognitive sciences, individualpreferences enable choice of objectives/goals. The study of theconsumer preference not only focuses on how and why consumersmake buying decision, but also focuses on how and why consumersmake choice of the goods they buy and their evaluation of thesegoodsafter use. So for success of any company or product promotion it isvery necessary to depart its concentration towards consumerpreference.

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SCOPE OF THE STUDY

As learning is a human activity and is as natural, as breathing.Despiteof the fact that learning is all pervasive in our lives, psychologistsdonot agree on how learning takes place. How individuals learn is a

matter of interest to marketers. They want to teach consumers intheirroles as their roles as consumers. They want consumers to learn

abouttheir products, product attributes, potential consumers benefit, howtouse, 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 Moradabad region only.

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OBJECTIVES OF THE STUDY

This project is based on the comparative study consumer behaviortowards Nestle and Cadbury chocolates. Objectives of the studyare:

The other objective is to know about the customer satisfactionlevelassociated with the product and the customer preference level. To increase customer satisfaction and recapture the market sharebyfulfillingthe customer needs.

To study the factors affecting the consumption pattern.

LIMITATIONS OF THE STUDY

In attempt to make this project authentic and reliable, everypossibleaspect of the topic was kept in mind. Nevertheless, despite of factconstraints were at play during the formulation of this project. Themain limitations are as follows:

Due to limitation of time only few people were selected for thestudy. So the sample of consumers was not enough to generalizethefindings of the study.

The main source of data for the study was primary data with thehelp 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.

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RESEARCH METHODOLOGY

As mentioned earlier, the objective of the study is to formulate aMarketing Strategy for any new entrant in the Indian ChocolateIndustry. While recommending the said strategy detailedinformationfrom both primary and secondary sources was collected andanalysed. This included:

Primary Sources

Four level primary information collections were undertaken.1. To analyse buying behaviour and in order to gain an insight intothebuyer need-satisfaction level, a questionnaire was formulated andadministered among 80 people. The profile of the respondents wasasfollows:1. Consumers of chocolates ± 12 years + in KOLKATA. This wassince; chocolate consumption was witnessed amongst all age

groups.2. A distributor was also interviewed so as to get pertinentinformation regarding the most important µP¶ of FMCG marketing ±Place.3. Extensive interviews were conducted with retailers in theKOLKATA area. These included pan shops, grocery shops, bakeries,departmental stores, etc. They provided information on variousfactsof chocolate distribution such as Point-of ±purchase material(dispensers etc.), infrastructure problems, critical informationalregarding the policies of the present players in the market, etc.

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Secondary Sources

A number of secondary sources of information were used. Thesewere:· Information: Industry statistics, problems facing the industry,

future outlook, etc. Also measures being adopted for cocoaproductiondevelopment.· Internet websites Of Cadbury¶s, Nestle and indiainfoline.com,askjeeves.com· Extensive use of secondary information in the form of magazines/journals/newspapers clippings, such as Business World,Business Today, Business India, A&M, Brand Equity, Economic Times, etc.

The methodology adopted was as follows:

Industry Scenario Sketch (utilizing secondary information)Extensive Interviews held with Primary/Secondary Sources(Companies/Chocolate manufacturers Association).Extensive retailer interviews in KOLKATA AreaFormulation and administration of a questionnaire

Formulation of the Recommended Strategy on the basis of theabove mentioned Primary and Secondary Information.

OBJECTIVES OF THE STUDY:

1. To get familiar with their marketing strategies separately.2. To view the segments being targeted by these brands in themarket.3. Up to what extent do the public respond to their products?4. To prepare a marketing plan for any brand that is planning toenter the India Chocolate Market.5. To be a relevant guide for any brand launch in India.

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Chocolate

The very word makes your mouth water.Chocolate is more than just a food: it¶s a state of mind.

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History of chocolate: The origin of chocolate can be traced back to the ancient Maya and Azteccivilizations inCentral America, who first enjoyed ³chocolati´ a much-prized spicy drink made fromroasted cocoa beans. Throughout its history, whether as cocoa or drinking chocolate beverage orconfectionarytreat, chocolate has been a much sought after food. The Aztec empire³Chocolate´(in the form of a luxury drink) was consumed in large quantities by theaztecs: the drink was described as ³ finely ground, soft, foamy, reddish, bitter withchilliwater, aromatic flowers, vanilla and wild bee honey. The dry climate meant the Aztecs were unable to grow cocoa trees, and had toobtainsupplies of cocoa beans from ³ tribute´ or tradeDon Cortes The Spanish invaded Mexico in the 16th century, by this time the Aztecs had createdapowerful empire, and the Spanish armies conquered Mexico. Don Cortes was madecaptain 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 ³chocolate´ became a fashionabledrinkenjoyed by the rich in Spain.Chocolate across EuropeAn Italian traveler, Francesco carletti, was the first to break the Spanish monopoly.Hehad visited Central America and seen how the Indians prepared the cocoa beansand howthey made the drink, and by 1606 chocolate was well established in Italy.History of chocolate: The origin of chocolate can be traced back to the ancient Maya and Azteccivilizations inCentral America, who first enjoyed ³chocolati´ a much-prized spicy drink made fromroasted cocoa beans. Throughout its history, whether as cocoa or drinking chocolate beverage or

confectionarytreat, chocolate has been a much sought after food. The Aztec empire³Chocolate´(in the form of a luxury drink) was consumed in large quantities by theaztecs: the drink was described as ³ finely ground, soft, foamy, reddish, bitter withchilliwater, aromatic flowers, vanilla and wild bee honey. The dry climate meant the Aztecs were unable to grow cocoa trees, and had toobtainsupplies of cocoa beans from ³ tribute´ or tradeDon Cortes The Spanish invaded Mexico in the 16th century, by this time the Aztecs had createdapowerful empire, and the Spanish armies conquered Mexico. Don Cortes was madecaptain general and governor of Mexico.When he returned to Spain in1528 he loaded his galleons with cocoa beans andequipment for making the chocolate drink. Soon ³chocolate´ became a fashionabledrinkenjoyed by the rich in Spain.Chocolate across EuropeAn Italian traveler, Francesco carletti, was the first to break the Spanish monopoly.Hehad visited Central America and seen how the Indians prepared the cocoa beansand howthey made the drink, and by 1606 chocolate was well established in Italy.

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Drinking chocolate The secret of chocolate was taken to France in 1615, when Anne, daughter of Phillip2 of Spain married king Louis 13 of France The French court enthusiastically adopted this new exotic drink, which wasconsideredto have medicinal benefits as well as being a nourishing food. Gradually the custom

of drinking chocolate spread across Europe, reaching England in the 1650¶sFirst chocolate for eatingUp until this point all chocolate recipes were based on plain chocolate. It was anEnglishdoctor, sir Hans¶s sloane, who- after traveling in south America- focused on cocoaandfood 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 centralAmerica rain forests, where the tropical mix of high rain fall combined with highyearround temperatures and humidity provide the ideal climate for cultivation of theplantfrom which chocolate is derived, the cacao tree.

³ Chocolate is made from the cocoa bean, found in pods growing from the trunk andlower branches of the cacao tree, Latin name ³ theobroma cacao´ meaning ³ food of thegods´Cacao was corrupted into the more familiar ³ cocoa´ by the early Europeanexplorers. The Maya brewed a spicy, bittersweet drink by roasting and pounding the seeds of thecacao tree with maize and capsicum peppers and letting the mixture ferment. Thisdrinkwas reserved for use in ceremonies as well as for drinking by the wealthy andreligiouselite; they also ate cacao porridge.

The Aztecs, like the Mayans, also enjoyed cacao as a beverage fermented from therawbeans, which again featured prominently in ritual and as a luxury available only tothevery wealthy. The Aztecs called this drink xocolatl, the Spanish conquistadors foundthisalmost impossible to pronounce and so corrupted it to the easier ³ chocolat´ theEnglishfurther changed this to chocolate. The Aztec¶s regarded chocolate as an aphrodisiac and their emperor, Montezumareputedly drank it fifty times a day from a golden goblet and is quoted as saying of xocolatl: ³ the divine drink, which builds up resistance and fights fatigue. A cup of thisprecious 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 byCortez, by this time the conquistadors had learned to make the drink more palatabletoEuropean tastes by mixing the ground roasted beans with sugar and vanilla ( apracticestill continued today), thus offsetting the spicy bitterness of the brew the Aztec¶sdrank. The first chocolate factories opened in Spain, where the dried fermented beansbroughtback from the new world by the Spanish treasure fleets were roasted and ground,and bythe early 17th century chocolate powder ± from which the European version of thedrink

was made- was being exported to other parts of Europe. The Spanish kept the sourceof the drink- the beans- a secret for many years, so successfully in fact, that whenEnglishbuccaneers boarded what they thought was a Spanish ³ treasurer galleon´ in 1579,only tofind it loaded with what appeared to be ³ dried sheep¶s droppings, they burned thewholeship in frustration. If only they had known, chocolate was so expensive at that time,thatit 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 Spainhad

become popular throughout Europe, in the Spanish Netherlands, Italy, France,Germanyand ± in about 1520 ± it arrived in England.

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The first chocolate house in England opened in London in 1657 followed rapidlybymany others. Like the already well established coffee houses, they were used asclubswhere 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) withthemto England¶s colonies in north America. Destined to become the united states of Americaand Canada, they are now the worlds largest consumers ± by far ± of bothchocolate andcoffee, 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 puritansof English civil war and pilgrim fathers fame and a history of chocolate would not becomplete without mentioning their part in it. Some of the most famous names inchocolate were Quakers, who for centuries held a virtual monopoly of chocolatemakingin 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 kingCharles1st that the Quaker¶s who evolved from the puritans, first began their historicassociationwith chocolate. Because of their pacifist religion, they were prohibited from manynormalbusiness activities, so as an industrious people with a strong belief in the work ethic(likethe puritans), they involved themselves in food related businesses and did very well.Baking was a common occupation for them because bread was regarded as thebiblical³staff of life´, and bakers in England were the first to add chocolate to cakes so it

wouldbe a natural progression for them to start making pure chocolate. They were alsoheavilyinvolved in breakfast cereals but that¶s another story.What is certain is that the fry, row tree and Cadbury families in England amongothers,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¶shavenow all but disappeared (taken over by Cadbury) and row tree have merged Swisscompany nestle, to form the largest chocolate manufacturer in the world. Cadburyhavestayed with chocolate production and are now, if not quite the largest, probably one

of thebest-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 Englandbeganadding cocoa powder to cakes in the mid 1600¶s. Then in 1828 a Dutch chemist, Johannesvan houten, invented a method of extracting the bitter tasting fat or ³cocoa butter´fromthe roasted ground beans, his aim was to make the drink smoother and morepalatable,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 vanhoutenprocess) 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 sayruin)cocoa powder and cocoa butter with sugar and dried milk powder to produce the firstmilk chocolate.

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CHOCOLATE PRODUCTION The cocoa-bean -- the heart of the sweetest delicacy in the world -- isbitter! This is why, up to the 18th century some native tribes ate onlythesweetish 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 whichpractically all varieties can be categorised: Criollo and Forastero cocoas. The pure variety of the Criollo tree is found mainly in its native Equadorand 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 theproductionof high-quality chocolate and for blending. However, Criollo cocoa accounts for only10% of the world crop. The remaining 90% is harvested from trees of the Forasterofamily, with its many hybrids and varieties. The main growing area is West Africa. Thecocoa tree can flourish only in the hottest regions of the world. TheHarvest

Immediately after harvesting, the fruit is treated to prevent it fromrotting.At fermentation sites either in the plantation or at, collecting points,thefruit is opened.Fermentation The fermentation process is decisive in the production of high quality raw cocoa. Thetechnique varies depending on the growing region.DryingAfter fermentation, the raw cocoa still contains far too much water; in fact about60%.Most of this has to be removed.What could be more natural than to spread the beans out to dry on the sun-soakedground

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

CleaningBefore the real processing begins, the raw cocoa is thoroughly cleanedbypassing through sieves, and by brushing. Finally, the last vestiges of wood, jute fibres, sand and even the finest dust are extracted bypowerfulvacuum equipment.Roasting The subsequent roasting process is primarily designed to develop the aroma. Theentireroasting process, during which the air in the nearly 10 feet high furnaces reaches atemperature of 130 °C, is carried out automatically.Crushingandshelling The roasted beans are now broken into medium sized pieces in the crushingmachine.BlendingBefore grinding, the crushed beans are weighed and blended according to specialrecipes. The secret of every chocolate factory lies in the special mixing ratios, which it hasdeveloped for different types of cocoa.

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Grinding The crushed cocoa beans, which are still fairly coarse are now pre-ground by specialmilling equipment and then fed on to rollers where they are ground into a fine paste. Theheat 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,liquidmixture. This is dark brown in color with a characteristic, strong odour. During cooling itgradually sets: this is the cocoa paste.At this point the production process divides into two paths, but which soon joinagain. Apart of the cocoa paste is taken to large presses, which extract the cocoa butter. The otherpart passes through various blending and refining processes, during which some of thecocoa butter is added to it. The two paths have rejoined.

CocoaButter The cocoa butter has important functions. It not only forms part of everyrecipe, but it also later gives the chocolate its fine structure, beautifullustre and delicate, attractive glaze.Cocoa Powder

After the cocoa butter has left the press; cocoa cakes are left which still contain a10 to20% proportion of fat depending on the intensity of compression. These cakes are crushed again, ground to powder and finely sifted inseveral stages and we obtain a dark, strongly aromatic powder, which isexcellent for the preparation of delicious drinks - cocoa. Cocoa paste,cocoa butter, sugar and milk are the four basic ingredients for makingchocolate. By blending them in accordance with specific recipes the three types of chocolate are obtained which form the basis of ever product assortment, namely:KneadingIn the case of milk chocolate for example, the cocoa paste, cocoa butter, powderedor

condensed milk, sugar and flavouring - maybe vanilla - go into the mixer, wherethey arepulverized and kneaded.RollingDepending on the design of the rolling mills, three or five verticallymounted steel rollers rotate in opposite directions. Under heavypressurethey 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.)ConchingBut 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 duringthis period the chocolate paste will be refined to such an extent in theconches that it will flatter even the most discriminating palate.Conches (from the Spanish word "concha", meaning a shell) is the name given to

thetroughs in which 100 to 1000 kilograms of chocolate paste at a time can be heatedup to80 °C and, while being constantly stirred, is given a velvet smoothness by theaddition of certain amounts of cocoa butter. A kind of aeration of the liquid chocolate pastethentakes place in the conches: its bitter taste gradually disappears and the flavor isfullydeveloped. The chocolate no longer seems sandy, but dissolves meltingly on thetongue.It has attained the outstanding purity, which gives it its reputation.

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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 snackfood. A strong volume growth was witnessed in the early 90¶s whenCadbury repositioned chocolates from children to adultconsumption. The biggest opportunity is likely to stem from increasing theconsumer base. Leading players like Cadbury and Nestle have beenattempting to do this by value for money offerings, which areaffordable to the masses.

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NESTLE¶

Nestle India

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

Nestle India- Presence Across India

Beginning with its first investment in Moga in 1961, Nestlé¶sregularand substantial investments established that it was here to stay. In

1967, Nestlé set up its next factory at Choladi (Tamil Nadu) as apilotplant to process the tea grown in the area into soluble tea. The Nanjangud factory (Karnataka), became operational in 1989,theSamalkha factory (Haryana), in 1993 and in 1995 and 1997, Nest lécommissioned two factories in Goa at Ponda and Bicholimrespectively. Nestlé India is now putting up the 7th factory at PantNagar in Uttaranchal.

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Nestle¶ Story

Nestlé was founded in 1867 on the shores of Lake Geneva in Vevey,Switzerland and its first product was ³Farine 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 Companyin 1905, Nestlé has grown to become the world¶s largest and mostdiversifiedfood Company, and is about twice the size of its nearest competitor in thefoodand beverage sector. Nestlé¶s trademark of birds in a nest, derived fromHenriNestlé¶s personal coat of arms, evokes the values upon which he foundedhisCompany. Namely, the values of security, maternity and affection, nature

andnourishment, 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 hadaround247,000 employees worldwide, operated 500 factories in approx. 100countriesand offered over 8,000 products to millions of consumers universally. TheCompany¶s transparent business practices, pioneering environment policyandrespect for the fundamental values of different cultures have earned it an

enviable place in the countries it operates in. Nestlé¶s activities contributetoand nurture the sustainable economic development of people, communitiesandnations. Above all, Nestlé is dedicated to bringing the joy of µGood Food,GoodLife¶ to peoplethroughout their lives, throughout the world.

Nestle¶ Brands

Milk Products & NutritionBeveragesPrepared Dishes and Cooking AidsChocolates & Confectionary

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MILK PRODUCTS AND NUTRITION:NESTLÉ EVERYDAY Dairy WhitenerNESTLÉ EVERYDAY SlimNESTLÉ EVERYDAY GheeNESTLÉ MILKMAIDNESTLÉ Fresh 'n' Natural Dahi

NESTLÉ Fresh 'n' Natural Slim DahiNESTLÉ Jeera RaitaNESTLÉ MILKMAID Fruit yoghurtNESTLÉ MilkNESTLÉ Slim Milk

BEVERAGES:NESCAFÉ CLASSICNESCAFÉ SUNRISENESTLÉ MILO

NESCAFÉ 3 in 1NESCAFÉ Koolerz

PREPARED DISHES AND COOKING AIDSMAGGI 2-MINUTE NoodlesMAGGI Vegetable Atta NoodlesMAGGI Dal Atta NoodlesMAGGI Rice Noodles ManiaMAGGI SaucesMAGGI Pizza MazzaMAGGI Healthy SoupsMAGGI Healthy Soup- SanjeevniMAGGI MAGIC Cubes

CHOCOLATES & CONFECTIONARYNESTLÉ KIT KATNESTLÉ KIT KAT LITENESTLÉ MUNCHNESTLÉ MUNCH POP CHOCNESTLÉ MILKYBARNESTLÉ MILKYBAR CHOO

NESTLÉ BAR-ONENESTLÉ FUNBARNESTLÉ Milk ChocolatePOLOPOLO PowermintNESTLÉ Eclairs

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NESTLEKITKAT

Are crisp wafer fingers covered with choco layer? NESTLÉ KIT KAT has aunique finger format with a µbreaking' ritual attached to it.NESTLÉ KIT KAT is one of the most successful brands in the world and everyyear over 12 billion NESTLÉ KIT KAT fingers are consumed around the globe.

NESTLE MUNCH

NESTLÉ MUNCH is wafer layer covered with delicious choco layer. NESTLÉMUNCH is so crisp, light and irresistible that you just µcan'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. Relaunchedin January 2006 with a Calcium Rich recipe, NESTLÉ MILKYBAR is afavorite 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 µTime for Action'.

NESTLE Milk Chocolate:

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

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CADBURY

How Cadbury Chocolate is made

Milk chocolate for eating was first made by Cadbury in 1897 by adding milkpowder John paste to the dark chocolate recipe of cocoa mass, cocoa butterand

sugar. By today's standards this chocolate was not particularly good: it wascoarse and dry and not sweet or milky enough for public tastes. There was agreat deal of competition from continental manufacturers, not only theFrench,but also the Swiss, renowned for their milk chocolate. Led by GeorgeCadbury Junior, the Bournville experts set out to meet the challenge. Aconsiderable amount of time and money was spent on research and on newplantdesigned to produce the chocolate in larger quantities. A recipe wasformulatedincorporating fresh milk, and production processes were developed toproduce a

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

Four years of hard work were invested in the project and in 1905 whatwas to be Cadbury's top selling brand was launched. Three names wereconsidered: Jersey, Highland Milk and Dairy Maid. Dairy Maid became DairyMilk, and Cadbury's Dairy Milk, with its unique flavour and smooth creamytexture, was ready to challenge the Swiss dominat ion of the milk chocolatemarket. By 1913 Dairy Milk had become the company's best selling line andinthe mid twenties Cadbury's Dairy Milk gained its status as the brand leader,aposition it has held ever since.

~ 25 ~



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 (HimachalPradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). Thecorporate office is in Mumbai.Currently Cadbury India operates in threesectorsviz. Chocolate Confectionery, Milk Food Drinks and in the Candy c ategory.In the Chocolate Confectionery business, Cadbury has maintained itsundisputed leadership over the years. Some of the key brands are CadburyDairy Milk, 5 Star, Perk, Éclairs and Celebrations . Cadbury enjoys a valuemarket share of over 70% - the highest Cadbury brand share in the world!

Theirflagship brand Cadbury Dairy Milk is considered the "gold standard" forchocolates in India. The pure taste of CDM defines the chocolate taste for theIndian consumer. In the Milk Food drinks segment their ma in product isBournvita - the leading Malted Food Drink (MFD) in the country. Similarly inthe medicated candy category Halls is the undisputed leader.

The Cadbury India Brand Strategy has received consistent support throughsimple but imaginative extensions to product categories and distribution. Agood example of this is the development of Bytes. Crispy wafers filled withcoca cream in the form of a bagged snack, Bytes is positioned as "The newconcept of sweet snacking". It delivers the taste of chocolat e in the form of alight snack, and thus heralds the entry of Cadbury India into the growingbaggedSnack Market, which has been dominated until now by SaltedBagged Snack Brands. Bytes was first launched in South India in 2003.Since 1965 Cadbury has also pioneered the development of cocoa cultivationinIndia. For over two decades, it has worked with the Kerala AgricultureUniversity to undertake cocoa research and released clones, hybrids thatimprove the cocoa yield. Today, Cadbury is poised in its leap towardsquantumgrowth and new categories of business, namely gums, mints, snacking andgifting. It is a part of the Cadbury Schweppes Group, world's No.1Confectionery Company. ~ 26 ~



CADBURY WORLD WIDE

Cadbury is the world's largest confectionery company and have a strongregional 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 almostevery country around the world. We employ around 60,00 people. Theirheritage starts back in 1783 when Jacob Schweppe perfected his process formanufacturing carbonated minera l water in Geneva, Switzerland. And in1824

John Cadbury opened in Birmingham selling cocoa and chocolate. These twogreat household names merged in 1969 to form Cadbury Schweppes plc.Sincethen they have expanded their business throughout the world by aprogramme of

organic and acquisition led growth. Concentrating on their core brands inbeverages and confectionery since the 1980s, they have strengthened theirportfolio through almost fifty acquisitions, including brand icons such asMott's,Canada Dry, Halls, Trident, Dentyne, Bubblicious,Trebor, Bassett, Dr Pepper,7Up 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

~ 27 ~



Cadbury Brands:ChocolatesSnacksBeverages

CandySNACKS:Bytes

BEVERAGESBournvita

CANDYHalls

CHOCOLATESDairy Milk

5 StarPerkCelebrations

TemptationEclairsGems

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 in1948. The variantsFruit& Nut, Crackle and Roast Almond, combine the classic taste of CadburyDairyMilk with a variety of ingredients and are very popular amongst teens &adults.Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy MilkWowie, chocolate with Disney characters embossed in it, and Cadbury DairyMilk 2 in 1, a delightful combination of milk chocolate and white chocolate.Giving consumers an exciting reason to keep coming back into the fun filledworld of Cadbury. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market.

~ 28 ~



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 itsuser base. Launched in 1969 as a bar of chocolate that was hard outsidewithsoft caramel nougat inside, Cadbury 5 Star has re -invented itself over theyearsto keep satisfying the consumers taste for a high quality & differentchocolateeating experience. One of the key properties that Cadbury 5 Star wasassociatedwith was its classic Gold colour. And through the passage of time, this wasoneproperty that both, the brand and the consumer stuck to as a valuableassociation. More recently, to give consumers another reason to come intotheCadbury 5 Star fold, Cadbury 5 Star Crunchy was launched. The samedeliciousCadbury 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 dominatedprimarilyby chips & wafers. With the rise of more value-for-money brands in the waferchocolate segment, Cadbury Perk unveiled two new offerings - Perk XL andXXL. In 2004, with an added dose of 'Real Cadbury Dairy Milk' and an'improved wafer', Perk became even more irresistible.

~ 29 ~



CELEBRATIONS

Cadbury Celebrations was aimed at replacing traditional gifting options likeMithai and dry- fruits during festive seasons. Cadbury Celebrations isavailablein several assortments: An assortment of chocolates like 5 Star, Perk, Gems,Dairy Milk and Nutties and rich dry fruits enrobed in Cadbury dairy milkchocolate in 5 variants, Almond magic, r aisin magic, cashew magic, nutbutterscotch and caramels. The super premium Celebrations Rich Dry FruitCollection which is a festive offering is an exotic range of chocolate covereddry fruits and nuts in various flavours and the premium dark chocolate rangewhich is exotic dark chocolate in luscious flavours.

TEMPTATION

Cadbury Temptations is a range of delicious premium chocolate in fiveflavours variants - Roast Almond Coffee, Honey Apricot, Mint Crunch, BlackForest and Old Jamaica.

~ 30 ~



VISION

The governing objective for Cadbury India is to deliver:· Superior Shareholder Value· Cadbury in every pocket

The company believe this requires:

· Broadening our consumer appeal and extending their reach to newermarkets· Sustained growth of their market share through aggressive productdevelopment· Striving for international quality in their products and processes· Focusing on cost competitiveness and productivity in their operationsandinnovative utilisation of their assets· Investing to develop people.Finding a Market Winner

Developing a successful new product which will stand the test of time andgain a permanent place in a company¶s product portfolio is not easy. Muchquoted figures estimate that it takes in the region of 58 new product ideas toend up with one successful new product and some people put the initialfigureas high as 100. The majority of ideas fail early in the process ± well beforethey reach the consumer. A further significant proportion fail to move from

thetest market into national distribution. With the tremendous investmentrequiredfor totally new products, it is essential that the whole project is carefullyresearched. In fact, it may take several years for a new product to grow fromconcept stage to national distr ibution. The search for a new product usuallybeings with an evaluation of the opportunities or gaps in the market.Successful new brands are targeted as far as possible to avoid taking marketshare from a company¶s existing brands. A new sector must be cr eated inthemarket or the new product must attack competitors¶ brands. Successful new

product development is essentially team work involving research anddevelopment, marketing and sales, market research, production,engineering andfinance. At Cadbury, in common with most companies, the marketing role isfulfilled by the Product/Brand Manager whose function is to coordinate andmastermind the project through from the initial brief to national launch, untilthelargest sales tonnage has been achieved.

~3 ~



The initial impetus for embarking on a New ProductDevelopment project can be:· Changes in consumer lifestyles· Technology developments where new processing techniques have been

devised· The need for market extension abroad, particularly into Asia Pacif ic, andthedemise of trade barriers.However, products cannot be simply transferred from one market toanotherwithout review and possible adaptation to suit differing expectations andcultures.Whether the product strategy is:· Existing product improvement· New product development within the current range of activity

· Production diversificationADVERTISING & SALES PROMOTION

As we have discussed the importance of Advertising and Sales promotioninintroduction, so we know how much advertising aim sales promotion areimportant.

The slogans of advertising are the tools of sales promotion are soimportantwhich couples the customer to purchase the product. Now we are going

todiscuss all these things one by one about Cadbury.Following are a few advertising slogans used by Cadbury for introducingtheproduct to the customers:-· THE REAL TASTE OF LIFE (DAIRY MILK )· THODI SI PET POOJA KABHI BHI KAHI BHI (PERK)· WHEN EVER ON HUNGER STRIKE (PERK)· TAN KI SHAKTI, MAN KI SHAKTI (BOURNVITA)· KUCH ZADA HI SOLID (PICNIC)· YEH CHOCOLATE KHAE AAP INHE KHAE (ECLAIRS)

All these slogans used by Cadbury are beautifully prepared because theycancompel the consumer to buy the product to some extent.Now we will discuss them in details with the help of which we can easilyunderstand how these slogans can leave these impression on thecustomer.·

~ 32 ~



The Real Taste of Life This slogan was prepared for the first chocolate introduce by the Cadburyfirsttime in India. The chocolate was µDairy Milk¶. This slogan says that therearemany types of products present in the market, they have different taste

butDairy Milk is the best and the true taste of the life. This slogan also standsforthe victory. On electronic media, the advertisement shows that a cric keterwinsthe match and after that he and his girl friend eats this product. Therefore,thisstands for victory of any body eats this product will definitely win in his life.

· Thodi Si Pet Pooja Kabhi Bhi Kahi BhiWhen Cadbury introduced its next chocolate named µPerk¶ this sloganwereused. This explains that if anybody is hungry and he do not have anything toeat accept this Perk then he can have this. This shows that Perk is sogood

chocolate which can be used as a substitute of food and is a completefood.

· Whenever on Hunger StrikeLater on Cadbury came out with new slogan on television; theadvertisementshows that few students are on hunger strike. But they had the chocolate.

Thisshows that nobody can control himself/herself if this prod uct of Cadburyislying in front of that person. This means that Cadbury product is so goodthatnobody can leave it.

· Tan Ki Shakti, Man Ki Shakti This slogan was used for µBournvita¶. Bournvita is full of proteins, vitamins,minerals and all those nece ssary things which are useful for our body andmind. Therefore, this slogan stood best for Bournvita. TAN KI SHAKTI, means

the energy to the body. If anybody here this product, he /she will remainactivefor whole day. That person will look healthy, active and will look smart.· YEH CHOCOLATE KHAIN, AAP INHE KHAINWhen Eclairs toffee came in the market, this slogan was used. Eclairs is atoffee filled with chocolate. It means that instead of having chocolate youcanhave eclairs toffee too. It a person does not want to have 12 pieces of chocolate, can have one or two eclairs toffee.· KUCH ZADA HI SOLIDNowadays new chocolate has been introduced by the Cadbury and this

slogans going on creating demand for this new product. In this ad we canseethat one chocolate falls on a car and damages the car. This chocolate is sostrong due to lots of nuts, caramel etc. etc. present in this chocolate. Thisalsoshows that this is for adventurous people who love thrills, adventure etc.

~ 33 ~



DISTRIBUTION SYSTEM ADOPTED BYCADBURY

Cadbury Schweppes pick the world number 3 soda market has aggfed tosell

most of its soft drinks business outside the US to Coca Co. for $ 1.85billionsto finance a head on battle with Coke in the No. 1 soda makers homemarket.

The agreements included the Schwoers Dr. Pepper chanda dry and crushbrands and exude South Africa and France the pact which was dependentonregulatory approval was likely to be concealed in mid 1999 Cadbury said.

The more will allow Cadbury to expand it Dr. Peeper busines s in US whereitderives two-thirds of its soft drinks sales and was a 15 per cent market

shareat the same time it get Cadbury out of markets where it is growing at aslowerpace. The shares rose as much as 70.5 per cent or 7.5 per cent or 7.5 percent 1002.³This sort out the places where Cadbury¶s systems weren¶t strongenough tocompete with Coca-Cola,´ said Mr. David long an analyst a HendersonCroshtwaite, ³they were fighting with proper for this.Patterns of distribution channels and types of distribution intermediaries

Manufacture

Stockiest/Distributor

Semi-wholesaler

Retailer

User

~ 34 ~



Main steps involved in Developing the channel design

· Formulation of channel objectives.· Identification of channel functions.· Analysing the product characteristics and linking channel design totheproduct.· Evaluation of the distribution environment including legal aspects· Evaluation of competitors channel patterns.· Evaluation of company resources and matching the channel designtothe resources.· Development of alternative channel designs and selation of the one· that suits the firm most.

Qualities that Cadbury management look for while selectingdealers

· Business reputation and business standing.· Business capacity and salesmanship.· Expertise and previous experience in the line.· Financial capacity and willingness to invest in the line.· Credit worthiness.· Capacity to offer to customers :

Required assortments of products.

Required services.· Capacity and willingness to extend credit tocustomers.· Capacity to provide.(1) Storage facilities.(2) Showrooms,(3) Shops,(4) Service workshops,(5) Salesmen and(6) Service men commensurate with expected business· Social status

· Good relation with:Consumer, especially, bulk consumers, and subdealers.

~ 35 ~



PRICING POLICIES ADOPTED BY CADBURYDespite intensifying competition for target share and a stream of newproducts, pitted against each other, the price line of popular brands of chocolate had move upward over the past one year.

Prices of key brands like Nestle¶s Kitkat and Cadbury¶s Dairy Milk haveroseby 25 per cent each between November 2001 and November 2002.Brands such as Cadbury¶s Eclairs, where the unit prices is lower, haveseen asharpener price hike.A major portion of the price revision occurred in the last part of 2001 andinthe first quarter of 2002.A sharp rise in cocoa prices and rupee and depreciation escalation in inputcosts for chocolate manufacturers in the last leg of fiscal 2001 -98.

Whole cocoa, prices have receded from their high after September 2001,rupee depreciation and the higher incidence depreciation and the higherincidence of excise duties has kept the price line of chocolates.

The cost of cocoa, the key input, accounts for around 4 5 per cent of themanufacturing costs for chocolates production.Domestic cocoa production (estimated at 4500) to 5000 tonnes for thecurrentyear) has been stagnant and takes are of less than a third of domesticrequirements of chocolate and malted food m anufacturers. Manufacturerssuch as Cadbury and Nestle India import over half of this cocoarequirements.

International cocoa prices moved up from 140 cents per kg in January2001 topeak at 190 cents per kg in September 2001, prompting a round or priceincrease in chocolates in the last part of 2001.Subsequently cocoa prices have receded to around 150 -160 cents per kgandare expected to rule at these levels in the near term. However, rupeedepreciation of around 17 per cent since September 2001 is like ly to haveoffset the impact of this on production costs.

The reclassification of the wafer-coated chocolates, making themchargeable

to an excise duty of 18 per cent, against 8 per cent earlier, is also likely tocontribute to price escalation. The excise authorities have recently passed an order on Nestle, directing ittopay excise dues at the higher rate of 18 per cent. The matter is now underappeal. Maximum Retail Price - based excise duties, which have beenintroduced on chocolates in the latest budget could also add to theproductioncost especially in the premium categories. Though cocoa prices haveextendedto rule relatively soft. The price line for chocolates appears unlikely to

comedown in the near future.

~ 36 ~



FACTORS INFLUENCING PRICING OFCADBURYInternal Factors· Corporate and marketing objectives of the firm.· The image sought by the firm through pricing.

· The characteristics of the product.· Price elasticity of demand of the product.· The stage of the product on the product life cycle.· Use pattern and turn around rate of the product.· Cost of manufacturing and marketing.· Extent of distinctiveness of the product and extent of productiondifferentiationpracticed by the firm.· Other elements of the marketing mix of the firm a nd their interaction withpricing.· Composition of the product line of the firm.

External Factors· Market characteristics.· Buyer¶s behavior in respect of the given product.· Bargaining power of major customers.· Competitors pricing policy.· Government controls regulations on pricing.· Other relevant legal aspects.· Societal (or social) considerations.· Understanding, if any reached with price cartels.Cadbury objective of pricing· Profit maximization in the short-term.

· Profit optimization in the long-term.· A minimum return (or target return) on investment.· A minimum return on sales turnover.· Targets sales volume.· Target market share.· Deeper penetration of the market.· Entering new markets.· Target profit on the entire product line irrespective of profit level inindividualproducts.· Keeping competition out, or keeping it under check.

· Fast turn around and early cash recovery.· Stabilizing prices and margins in the market.

~ 37 ~



PREFER CHOCOLATES?

YES

NO

i re 1

A lysis & i terpret tio

Cl t i a product which i li by the all age group of people. Accordi gto 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 eatingchocolate on daily or weakly basis or may be they are eating any other brandof chocolate.

~ ~



NEST E

KITKAT

MUNCH

MI KY AR

AR ONE

¡

¡

MI K CHOCO ATE

i re 3

CADBURY

DAIRY MI K

5 STAR

PEARK

CE E RATION¡

¢

TEMPTATION

i re 4

A lysis & terpret tioIn this survey nestle is having five sub-brands like kitkat Munch, Milkybar,Barone,milk chocolates and their consumption are like kitkat 33% ,munch 56,milky bar 3% ,bare one 5% ,and milk chocolate 3%. And if we talk aboutCadbury the sub-brand of the Cadbury is dairymilk, 5 star, perk, celebration and

Temptation and their consumption are like dairy milk 62%, 5 star 17%, perk14%, celebration 2% and Temptation 5%. According to the survey the highestselling product is Cadbury.

~ ~



R k t e sub br ds o c ocolates accordi

NESTLE

to your pre ere ce

RANKING SUB BRAND

KIT KAT

NCH¤£

ILKY BAR

BAR ONE

ILK CHOCOLATE ¥

CADBURY

RANKING SUB BRAND

5 STAR

PERK CELEBRATION

TE PTATION£

A alysis & terpretatio

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 whichcaptured the market stake of 47% which is as compared to Much 20%less whichis a good sigh for Nestle and the less consumption of the Nestle product is Milkbar & Milk Chocolate the market share is only 3% and in Cadbury less sellingproduct are Celebration and Temptation the reason behindthis is they are too Costly to consume. And it can only use occasionally.

~ 1~

¥

¥

i ure 5

DAIRY ILK

i ure 6



W ic or o a c ocolate do you like?

FORM OF CHOCOLATES

HARD

CR NCHY

N TTIES

CHEW

¦

¦

i ure 7

A alysis & i terpretatio

Every person have there own taste and preferences towards the eatableproductin chocolates there are four varieties available in the market among this 47%of the consumer like hard chocolates, 29% of the consumer like crunchychocolates, 18% of the consumer like nutties chocolates & only 6% of theconsumer like Chew chocolates.

~ ~



W at pack do you purc ase?

SIZE OF PACK

SMALL

IG§

FAMILY PACK

i ure 8

A alysis & terpretatio

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 thechocolates are more eaten by the teenage group so they more prefer the smallpackaging because of there availability in market is good and most importantthing is its very much affordable. According to the survey 73% are using smallpack, 17% are using big pack of the chocolates, 10% are consuming familypack 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

~ ~



W ic o t ese actors affects your purc ase?

Sales

INGREDIENCE

ATTRACTIVE DISPLAY

BRAND A BASSADOR¨

ADVERTISE ENT©

fi ure 10

A alysis & terpretatio There are many factors affecting at the time of purchase. So company is doingpromotional activities to acquire the desired target of the product. Basicallythere are si main type of the promotional activities like 69% of theadvertisement, 1% of the suggestions, 2% of the attractive display, 0%of thedoctors advice, 21% of the companies are using Brand Ambassadors in thereadvertisement, 7% of the ingredients. So all this factors are affecting thepurchase.

~ ~



Using brand ambassador by Cadbury.

~ 46 ~



Findings

CONSUMER RESEARCH:Consumer research deals with consumer and their problems and solution

to theproblems. In this we came to know about the consumers needandexpectation levels regarding products and ascertainable levels of consumersatisfaction.

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 personcanspend on his/her favorite chocolate. In this I have tried to find outconsumer¶sprice 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 propermedia -mix and measuring advertising effectiveness. From the one and ha lf month

experience of our research project with Consumer preference towards Nestle

and Cadbury Chocolates, We have come to know lot things and it hasenhancedour knowledge to great extent. We found many things which are wellexecutedby distributors. Here are some of the key findings given by us are purely

basedon our research. It doesn¶t have any kind of bias from ourside.

~ 47 ~



They are given as under:

By doing the comparison of Nestle and Cadbury chocolates, we have found

thatthe preference of the chocolates more preferred by the consumer isCadbury.

From the analysis we have found that Nestlé¶s some brand has covered50% of the market in one product (Munch) of the chocolates which is a very goodsignfor the company.

Through the research we found that consumer is very conscious about the

quality of the product in that matter they are not ready to compromise. Andwefound both company product are veryqualitative.

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

some consumer would to switchover to another product orbrand.

So from these survey we have found that the consumption of the chocolatesaremore in children and teenage group though having any occasion or nothavingany occasion. The most selling product of both the companies is in small sizeof chocolates and there market share is 73% because it¶s not much costlierand isalso easily available & affordable.

~ 48 ~



SUGGESTIONS AND RECOMMENDATIONS

Chocolates products at Mumbai city are available in comparison topreviousyears, but still there is requirement of development in Chocolateproducts.Due to increasing overall cost in Chocolate Products everywhere, costformat should be made as such that it is affordable to each and everyonei nthe society. In this we also found that if the demanded brand is notavailable,so at that time the customers switch over the brand of the chocolate so,herethe company should build up the healthy distribution channel by whichcompany can attract the cu stomers and company loose the fear from themarket. Company should concentrate more on television foradvertisement,as mostly people get attracted through television only. For promotionaloffers, company should go for free gifts rather than going for other ways.Nestle company should concentrate on its packing as people are leastsatisfied with it while Cadbury should concentrate on the sha pe of achocolate. People are unsatisfied with the price and quantity of chocolatesocompanies should concentrate in this regard also.

~ 49 ~



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 peopleliketo eat Cadbury brand rather than Nestle. It is concluded that mostlypeoplepreferred Dairy Milk of Cadbury due to its flavor/taste, quality andimageand due to its hard form. Some people often like to have a chocolatewithgood flavor, quality hard form. Some people often like to have achocolatewith good flavor, quality taste and crunchiness. It is thus concludedfromthe facts collected that mostly people refer to buy big pack of thei rfavoritechocolate, and sometimes some of them go for small and familypack .

~ 50 ~



BIBLIOGRAPHY

Kotler Phillip, Marketing Management, Millennium edition. (Prentice hall

of India).

Business today

Business World,

Business India,

A&M, Brand Equity,

Economic Times

CMIE reports

www.indiainfoline.com

www.domain_b.com

www.agencyfaqs.com

www.nestle.in

www.nil.com

www.cadburys.com

www.web-enable.com/industry/enabling-scm.asp

indiainfoline.com

askjeeves.com

35357589 study of consumer prefarence towards cadbury and nestle chocolate

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