consumer behaviour cadbury n nestle

8/13/2019 consumer behaviour Cadbury n Nestle

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DECLARATION

Title: Consumer behaviour towards Cadbury and nestle chocolates

We declare

(a) That the work presented for assessment in this Project Report is our own that it hasnot previously been present for another assessment and that our debts (for words dataar!uments and ideas) have been appropriately acknowled!ed"

(b) That the work conforms to the !uidelines for presentation and style set out in therelevant documentation"


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ACKNOWLEDGEMENT

We have taken efforts in this project" #owever it would not have been possible without thekind support and help of many individuals and or!ani$ations" We would like to e%tend oursincere thanks to all of them"

We would like to e%press our !ratitude towards our &aculty 'r" jeet harma for kind co*operation and encoura!ement + constructive criticism"

We take this opportunity to thank all our friends and all those people who spared theirprecious time to provide me with valuable inputs for project without which it would have notbeen possible"


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PREFACE

project is a systematic study of real issues on a problem with the application ofmana!ement concept and skills" The study can deal with small or bi! issues of consumer

behaviour towards Cadbury and nestle chocolates"

,t can be case study where a problem has been dealt with throu!h the process ofmana!ement"

The essential e-uipment of a project is that it should contain scientific collection of dataanalysis and interpretation of data leadin! to valid conclusion"

This project report tends to !ive a sharp picture of Cadbury and nestle industry""


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C./T0/T

" /o Particulars Pa!e no


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ABSTRACT

Chocolate1 Chocolate is liked and eaten by all a!e !roup of people" ,t may be in a form ofhard nutties crunchy or chew" ,t is available in small bi! and family pack" Chocolate hasmany shapes like as rectan!le sphere or a brick shape" ,t tastes like sweet and bitter" ome

people have chocolate in a !lass of cold coffee or in the form of a toffee" ome people eatchocolate when they are sad2 some relish them when they are happy" 3ut , feel to havechocolates we don4t need a reason because we can have it anytime any season1


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INTRODUCTION TO THE STUDY

,n this research , have to survey and find out how fre-uently and how much chocolate dopeople consume whether they buy small bi! or family pack" The comparative study ofchocolates between C536R7 and /0T80 helps in product development andimprovement in launchin! of new product"

Reason for selectin! the Topic is that everybody knows that 9Customer is a kin! of'arket" There was a time years a!o whatever the seller produces he sells in the marketand the customer has to buy the same" 3ut in the current scenario due to the keencompetition in the market the situation has chan!ed" /ow seller has to produce what

customers want to sustain in the market" ,n the same way to know what customer wants onehas to observe the behaviour of the customer" This is the reason why this topic is !ivenimportance for selection" .nce marketer understands the mentality thou!ht process andreaction for certain product he can easily !rab the market share" ales are lar!ely bases onthe Customers then the product and services offered by the marketer"

Comparative research is the act of comparin! two or more thin!s with a view to discoverin!somethin! about one or all of the thin!s bein! compared" Comparative study helps toevaluatin! our stren!th and weakness with other competitor in same sector"fter this research , would come to know how people perceive these products on variableslike price -uality advertisement taste packa!in! brand loyalty etc" , also would come to

know which particular brand of chocolate is most preferred by the people of different a!e!roup"Consumer Preference* ll marketin! starts with the consumer" o consumer is a veryimportant person to a marketer" Consumer decides what to purchase for whom to purchasewhy to purchase from where to purchase and how much to purchase" ,n order to become asuccessful marketer he must know the likin! or dislikin! of the customers" #e must alsoknow the time and the -uantity of !oods and services a consumer may purchase so that hemay store the !oods or provide the services accordin! to the likin!s of the consumers" ;oneare the days when the concept of market was let the buyer4s beware or when the market wasmainly the seller4s market" /ow the whole concept of consumer4s soverei!nty prevails" Themanufacturers produce and the sellers sell whatever the consumer likes" ,n this sense

consumer is the supreme in the market" s consumers we play a very vital role in thehealth of the economy local national or international" The decision we make concernin! ourconsumption behaviour affect the demand for the basic raw materials for the transportationfor the bankin! for the production2 they effect the employment of workers and deploymentof resources and success of some industries and failures of others" Thus marketer mustunderstand this"Preference (or


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The study of the consumer preference not only focuses on how and why consumers makebuyin! decision but also focuses on how and why consumers make choice of the !oods theybuy and their evaluation of these !oods after use" o for success of any company or productpromotion it is very necessary to depart its concentration towards consumer preference"

This project is based on the comparative study of consumer preference towards /estle andCadbury chocolates" .bjectives of the study are:*

>" To study on consumer preference towards Cadbury and /estle chocolates"?" To know the consumers view towards the chocolates"@" To know which cate!ory of chocolate is most preferred"A" To study on various parameters on which the consumer purchases the chocolates"

HISTORY

Cadbury

Cadbury is a confectionery company owned by Kraft Food" &ounded in the year !"#$% &ounder was &o'( Cadbury" &ounded in I(d)aon !* &u+y !*$" #ead office is in Mu,ba)- I(d)a Products * Cadbury da)ry ,)+.- /0tar- P1r.- G1,- 23+a)r 0mployees around #444%

N1t+1 &ounded in !"55by H1(r) N1t+1" #ead-uarters is in S6)t71r+a(d% Company operates in "5 3ou(tr)1 around the world 0mployees over #-"4-444people" N1t+1 I(d)a Ltd &irst factory was set up in the year !*5! t 'o!a Punjab


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IMPORTANCE OF THE STUDY

>" This study will help us to know the customer preference towards the chocolates"?" This study is important to understand the chan!in! taste of the consumers"@" This study helps to understand the need and their demand in the market"A" ,t helps to improve the sales with the help of survey"B" ,t is important to understand the choice of consumers towards chocolates"

LIMITATION OF THE STUDY

>" 5ue to limitation of time only few people would be selected for the study"?" The sample si$e for the study is B only"@" The study is limited up to /oida area only"

R11ar3' M1t'odo+o8y

The project is based on information collected from primary sources" fter the detailed studyan attempt has been made to present comprehensive analysis of consumption of Cadbury andnestle chocolates consumed by the people" The data has been use to cover various aspectslike consumption consumerDs preference and customer satisfaction re!ardin! Cadbury andnestle chocolates"

R11ar3' P1r)od9 Research work is only carried for ABdays"

Sa,:+)(8 d1)8(&or this project work ra(do, a,:+)(8 method is used"


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Sa,:+)(8 )71 This means no" of respondent considered for collectin! data" The si$e of thesample decided for this project is B respondents"

FINDINGS AND OBSER;ATIONS

>" ,t is observed that @EF of the respondents belon! to a!e !roup of >*?"?" ,t is observed that BEF of the respondents are female + AAF of the respondents are male"@" ,t is observed that all the B respondents eat chocolates"A" ,t is observed that EEF of the respondents prefer chocolate as a sweet item"B" ,t is observed that GEF of the respondents prefer Cadbury brand of chocolate and ?AF ofthe respondents prefer /estle brand of chocolate"E" ,t is observed that out of @H respondents >B prefer 5airy milk chocolate more"G" ,t is observed that @HF of the respondents like crunchy form of chocolate"H" ,t is observed that out of @H respondents ?A are satisfied with the flavour and taste ofCadbury chocolate"I" ,t is observed that out of >? respondents > are satisfied with the flavour and taste of

/estle chocolate">" ,t is observed that @EF of the respondents by chocolates from other stores">>" ,t is observed that out of B of the respondents >I are purchasin! bi! pack of chocolate">?" ,t is observed that out of @H respondents @> are satisfied with the -uality of Cadburychocolate">@" ,t is observed that out of >? respondents E are satisfied with the -uality of /estlechocolate">A" ,t is observed that @?F of the respondents would switch over another brand">B" ,t is observed that ?EF of the respondents say brand mbassadors affects their

purchases">E" ,t is observed that BAF of the respondents says Television influence their purchases">G" ,t is observed that out of @H respondents >> and > respondents buy Cadbury chocolate

because of !ood -uality and brand ima!e">H" ,t is observed that out of >? respondents B respondents buy /estle chocolate because ofin!redients">I" ,t is observed that @EF of the respondents are not satisfied with the prices of thechocolate"

SUGGESTIONS

>" s @AF of the respondents su!!ested that /estle can concentrate more on advertisementand ?BF of the respondents say that /estle can maintain -uality of the product as compareto the competitors"?" Cadbury can concentrate more on price and -uantity of the product" ccordin! to surveyBAF of the consumers are wanted more -uantity of chocolate is lesser price"@" &or promotional offers company can !o for free !ifts rather than !oin! for other ways"A" /estle company can concentrate on its packa!in! of a chocolate as consumers are notsatisfied with it"B" Companies can concentrate more on television advertisement as BAF of the respondents!et attracted throu!h television"E" Consumers are unsatisfied with the price and -uantity of chocolate so companies can

concentrate in this re!ard also"


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T.P C.'P0T,T.R

'RJ0T 0;'0/TT,./

GEOGRAPHIC 9

6R3/ R0: ;R.WT# W,88 ',/87 C.'0 T#R.6;# / ,/CR00,/ P0/0TRT,./ ,/C.'0 80K08 ,'PR.K0"

DEMOGRAPHIC 9

!e ;roup L(@ years to >H years)

(>H years to ?B years)

(?B M years)

BEHA;IOURAL9

Purchase .ccasions* 5iwali Rakhsha 3andhan etc"

S6ot A(a+y) 0 Cadbury


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'RJ0T,/; ',N

PRODUCT 9

Cadbury ,ndia 8imited (C,8) confectionary products include 5airy 'ilk B tar0clairs Perk #alls 3ytes and ;ems which are the lar!est sellin! brands in theirse!ments"

PRICING 9

CadburyDs has launched various products which cater to all customer se!ments"

o every customer se!ment has different price e%pectation from the product"

Therefore ma%imi$in! the returns involves identifyin! ri!ht price level for each

se!ment and then pro!ressively movin! throu!h them"

e"!" : 5airy 'ilk Rs"B Perk Rs" > B tar Rs" B + Rs" > &ruit and /ut Rs" ??;ems Rs" B + > 3reak Rs" B /utties Rs" >H"

P'y)3a+ D)tr)but)o( < =P+a31>

Cadbury4s distribution network used to encompasses ?> distributors and ABretailers"

PROMOTION9

OCelebrities endorsements"


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OThe bi! factor that has pushed up cdm sales is the mitabh 3achchan campai!n"Cadbury appointed mitabh 3achchan as its brand ambassador"

Cadbury product are marketed a!!ressively in the market"

N1t+1PRODUCT 9

/estle products are Jit*Jat 'unch 'ilky*bar Char!e Classic Polo" Jit*Jat istheir premium brand in chocolates"

PRICING 9

/estle sets prices of their products accordin! to the market demand as low as possiblebecause nestle is the trend setter in the market"

,n line with CadburyDs offerin!s ,ncentive schemes L e!" 'aha munch !ive morevalue for the same price Priced at key price points like Rs"B

P'y)3a+ D)tr)but)o( < =P+a31>

;eneral &'C; distribution structure"

tron! covera!e in urban areas developin! in rural"

/ew Re!ional ales .ffices to increase width and penetration and focus in ruralareas"

PROMOTION 9

3rand ambassador* Rani 'ukherjee for munch ( tar!etin! youth)

5K0RT,,/; * 5ecreased dependence on childrenDs TK channels over recentyears @@F of total industry spend but near e-ual spend on each brand with rivalofferin!s from Cadbury"

'RJ0T #R0

72%

24%

3%1% Market Share

Cadbury (72%)

Nestle (24%)

Amul (3%)


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Chocolate market is estimated to be around >G to >I crores !rowin! at >H*?Fper annum and is dominated mainly by listed players Cadbury ,ndia and /estle ,ndia"

Cadbury is the market leader with G?F market share" Cadbury dominated the market "The company4s various brands such as 5airy 'ilk

&ive tar clairs ;ems and Perk are leaders in their se!ments" 6ntil the middle of IDs Cadbury had a monopoly amon! the chocolate

manufacturers" /estle ,ndia4s chocolate portfolio commands a total market share of ?AF" Then /estle made an entry by introducin! its famous brands like Jit Jat 'unch

and 'ilky 3ar in the process endin! CadburyDs monopoly" Competition in this se!ment is !oin! to increase as bi! international heavywei!hts

like #ershey4s and 'ars are enterin! the ,ndian market"

C.'P0TT,K0 0'0/T

&ood feuds keep share markets as well as consumers perennially interested" t firstit was the cola !iants that attacked each other usin! their ad campai!ns as da!!ersand now the battlefield is fast becomin! accustomed to the chocolate !iants LCadbury a(d N1t+1%

These are both !lobal brands which have been competin! neck and neck over marketshare for decades" #owever their approach to advertisin! was never as direct as ithas become in the last three years"

Takin! a lesson out of the cola !iantsD battlebook /estle is wa!in! nothin! short of apublic war a!ainst Cadbury throu!h its ad campai!ns"

Cadbury has without a doubt always been seen as the market leader" ,t leads thepack in the Rs" A*crore branded chocolate sector in ,ndia

0ven thou!h several brands such as mul and Campco tried to break into the marketnone of them succeeded in shakin! CadburyDs !rip

/estle is the only real competition Cadbury has had in its lon! run as market leader"

5irect Competition


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Cadbury captures GF of market share ,n Cadbury 5airy 'ilk accounts for ma%imum share &ive star come at ?ndplace

/estle captures ?BF of market share"

,n /estle 'unch accounts for ma%imum share

Jit Jat comes at ?ndplace

,/5,R0CT C.'P0T,T,./ ince the tar!et audience includes consumers of not only chocolates but also of

biscuits and confectionary products like toffees candies etc have proved to beindirect competition (however would be limited since we are tar!etin! smallse!ment)

C#880/;0 &.R &6T6R0 ;R.WT#

Government policies in terms of licensin! duties movement of a!riculturalcommodities etc" lso affect the introduction of products time la! for a productlaunches ta%es e%cise etc all influence the business"

Rupee depreciation improves e%port reali$ations however it also makes import ofraw material (esp" Cocoa) e%pensive"

Threat from forei!n brands" ,nflationary pressures on raw material prices 8ack of !overnment initiative L hi!h e%cise and import duties

#i!h entry barriers due to duopolistic market

C./C86,./ The Cadbury 5airy 'ilk brand has evolved into a 'e!abrand incorporatin! arran!e

of products each with their own identity" The strate!y involved a packa!in! and ran!e refreshment strate!y which has resulted

in a unified innovative 5airy 'ilk brand #avin! e%ceeded initial sales tar!ets by aconsiderable mar!in the strate!y can be considered a success1

There is an immense scope for chocolate industry in ,ndia" ,ndian chocolate industry is uni-ue mi% with e%treme consumption patterns

attitudes beliefs income level and spendin!"


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6nderstandin! consumer preferences and demands is the key to !rowth" 0conomical distribution usin! proper supply chain mana!ement is necessary" The ,ndian Chocolate ,ndustry is destined to !row and will do so in the future"

R0&0R0/C0

1. www.nestle.in

2. www.cadburyindia.com

consumer behaviour cadbury n nestle

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