report 1 nestle vs cadbury

8/3/2019 Report 1 Nestle vs Cadbury

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DECLARATION

I, Rajiv Gupta , bearing Enrollment No. 251091131 a student of Institute of

Management & Development, New Delhi affiliated to PTU, pursuing Masters

in Business Administration.Hereby, declare that the project report entitled

STUDY OF CONSUMER BEHAVIOR TOWRDS NESTLE & CADBURY

CHOCOLATES submitted is my original work and the project report has not

formed the basis for the award of any diploma, degree, associate ship,

fellowship or similar other titles. It has not been submitted to any other

university or institution for the award of any degree or diploma.

Date: Rajiv Gupta

Place: MBA IV Semester.


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ACKNOWLEDGEMENT

Survey is an excellent tool for learning & exploration. No classroom routine

can substitute which is possible while working in real situations. Application

of theoretical knowledge to practical situations is the bonanzas of this

survey.

Without a proper combination of inspection & perspiration, its not easy to

achieve to anything. There is always a sense of gratitude, which we express

to others for the help & needy services they render during the different

phases of our lives. I really wish to express my gratitude towards all those

who have been helpful to me directly or indirectly during the development

of this project.

I would like to thank my professors Renu Sharma & Arvind Arora, who was

always there to help and guide me whenever I needed help. Their

perspective criticism I am thankful to them for their encouraging and

valuable support. Working under them was an extremely knowledgeable

and enriching experience for me. I am very thankful to them for all the

value addition and enhancement done to me.

No words can adequately express my overriding debt of gratitude to my

parents whose support helps me in all the way.

Rajiv Gupta


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TABLE OF CONTENTS

1. Introduction.

2. Consumer preference.

3. Scope of the study.

4. Objective of the study.

5. Limitation of study.

6. History of chocolates.

7. Chocolate production.8. Consumption of chocolate in India.

9. Nestls profile.

10. Cadburys profile.

11. Basis of Research & Design.

12. Analysis of data findings.

13. Conclusion.

14. Suggestions & recommendations.


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LIST OF TABLES

TABL

E

NO.

TITLES

1. Liking for the chocolates.2. Different age groups.3. Preference according to age groups.4. Brand preference.5. Purchase of Cadbury chocolates.6. Purchase of Nestle chocolates.7. Overall purchase of chocolates.8. Preference of sub brands of Cadbury Chocolates.9. Preference of sub brands of Nestle Chocolates.

10. Influencing factors during purchase of Cadbury Chocolates.11. Influencing factors during purchase of Nestle Chocolates.12. Factors giving most satisfaction to consumers in Cadbury chocolates.13. Factors giving most satisfaction to consumers in Nestle chocolates.14. Form preference.15. Pack of chocolates preferred.

16. Promotional offers.

17. Factors affecting purchase.

18. Media of advertisement.

19. Frequency of consumption.

20. Reasonable price.

21. Consumers brand loyalty.22. Reaction of consumer if new brand is introduced

INTRODUCTION

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

of two famous brands of chocolates Nestle and Cadbury, which are


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consumed by people of all ages. During this research I have interacted with

people of Delhi & Kolkata. After this research I came to know how people

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

satisfaction, taste, packaging, brand loyalty etc. I also came to know which

particular brand of chocolate is most preferred by people of different agegroups. In this research I have surveyed that how frequently and how much

chocolate they consume, whether they buy small, big or family pack. Trend

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

report I have tried to explain the entire research and facts product wise.

CONSUMER PREFERENCE

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

person to a marketer. Consumer decides what to purchase, for whom to

purchase, why to purchase, from where to purchase, and how much to


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purchase. In order to become a successful marketer, he must know the

liking or disliking of the customers. He must also know the time and the

quantity of goods and services, a consumer may purchase, so that he may

store the goods or provide the services according to the likings of the

consumers. Gone are the days when the concept of market was let thebuyers beware or when the market was mainly the sellers market.

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

national or international. The decision we make concerning our

consumption behavior affect the demand for the basic raw materials, for the

transportation, for the banking, for the production; they effect the

employment of workers and deployment of resources and success of some

industries and failures of others.

Thus, marketer must understand this preference (or "taste") is a concept,

used in the social sciences, particularly economics. It assumes a real or

imagined "choice" between alternatives and the possibility of rank ordering

of these alternatives, based on happiness, satisfaction, gratification,

enjoyment, utility they provide.. The study of the consumer preference not

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

focuses on how and why consumers make choice of the goods they buy and

their evaluation of these goods after use. So for success of any company orproduct promotion it is very necessary to depart its concentration towards

consumer preference.

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


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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 consumers needs, but the marketers objectives. The scope of my studyrestricts 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.

OBJECTIVES OF THE STUDY


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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.

LIMITATIONS OF THE STUDY


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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 cant be eliminated though all necessary

steps were taken to avoid the same.


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Chocolate

The very word makes your mouth water.

Chocolate is more than just a food: its a state of mind.

Chocolates

Chocolates! Chocolates!


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

Or a tiny little gem,

Or shaped like a rectangle,

Or a sphere, a brick or an clair.

For chocolate lovers it is fun,To have them during rain, breeze or sun.

They are white and brown in color,

And taste sweet and bitter.

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

Some eat them when they are sad.

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

But I feel, to have chocolates.

We dont need a reason,

Cause we can have it.

Anytime, any season!

History of Chocolates


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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 largequantities by the Aztecs: the drink was described as finely ground, soft,

foamy, reddish, bitter with chili 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 CortesThe 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.

First chocolate for eating

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

was an English doctor, Sir Hanss Sloane, who- after traveling in south

America- focused on cocoa and food values, bringing a milk chocolate recipe


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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

the obroma 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 andpounding 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.

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 Aztecs 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.If only they had known, chocolate was so expensive at that time, that it was

worth its weight in silver ( if not gold), chocolate was treasure indeed !

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

Spain had become popular throughout Europe, in the Spanish Netherlands,

Italy, France, Germany and in about 1520 it arrived in England. The first


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

many others.

Back to the Americas

Events went full circle when English colonists carried chocolate (and

coffee) with them to Englands 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 Quakers 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.

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

worlds first chocolate bar. Frys have now all but disappeared (taken over

by Cadbury) and row tree have merged Swiss company nestle, to form the


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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 itThe first mention of chocolate being eaten in solid form is when bakers in

England began adding cocoa powder to cakes in the mid 1600s. 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 (madeby 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 Procedure


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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 ofcurrency.

The Varieties

There are two quite different basic classifications of

cocoa, under which practically all varieties can be

categorized : Criollo and Forastero cocoas. The pure

variety of the Criollo tree is found mainly in its native

Equador and Venezuela. The seeds are of finer quality than those of theForastero 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.


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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 colour 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.


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Cocoa Butter

The cocoa butter has important functions. It not only

forms part of every recipe, but it also later gives the

chocolate its fine structure, beautiful 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

KneadingIn the case of milk chocolate for example, the cocoa paste,

cocoa butter, powdered or condensed milk, sugar and

flavoring - maybe vanilla - go into the mixer, where they are

pulverized and kneaded.

Rolling

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

steel rollers rotate in opposite directions. Under heavy pressure theypulverize the tiny particles of cocoa and sugar down to a size of approx. 30

microns. (One micron is a thousandth part of a millimeter.)

Conching

But still the chocolate paste is not smooth enough to satisfy


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our palates. But within two or three days all that will have been put right.

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

in the conches that it will flatter even the most discriminating palate.

Conches (from the Spanish word "concha", meaning a shell) is the name

given to the troughs in which 100 to 1000 kilograms of chocolate paste at a

time can be heated up to 80 C and, while being constantly stirred, is given

a velvet smoothness by the addition of certain amounts of cocoa butter. A

kind of aeration of the liquid chocolate paste then takes place in the

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

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

the tongue. It has attained the outstanding purity which gives it its

reputation.

Consumption of Chocolates in India

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

around 160 gms in the urban areas, compared to 8-10kg in the developed

countries. In rural areas, it is even lower. Chocolates in India are consumed

as indulgence and not as a snack food. A strong volume growth was

witnessed in the early 90s when Cadbury repositioned chocolates fromchildren 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.


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Nestle India

Nestl India is a subsidiary of Nestl S.A. of Switzerland. With seven

factories and a large number of co-packers, Nestl India is a vibrant

Company that provides consumers in India with products of global

standards and is committed to long-term sustainable growth andshareholder satisfaction.


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Nestl India has presence across India with 7 manufacturing facilities and 4

branch offices spread across the region.

Nestl Indias first production facility, set up in 1961 at Moga (Punjab), wasfollowed soon after by its second plant, set up at Choladi (Tamil Nadu), in

1967. Consequently, Nestl India set up factories in Nanjangud

(Karnataka), in 1989, and Samalkha (Haryana), in 1993. This was

succeeded by the commissioning of two more factories - at Ponda and

Bicholim, Goa, in 1995 and 1997 respectively. The seventh factory was set

up at Pantnagar, Uttarakhand, in 2006.

The 4 branch offices in the country help facilitate the sales and marketing of

its products. They are in Delhi, Mumbai, Chennai and Kolkata. The Nestl

India head office is located in Gurgaon, Haryana.

Nestls story

Nestl was founded in 1867 on the shores of Lake Geneva in Vevey,

Switzerland and its first product was Farine Lacte Nestl, an infant

cereal specially formulated by Henri Nestl to provide and improve infant

nutrition. From its first historic merger with the Anglo-Swiss Condensed

Milk Company in 1905, Nestl has grown to become the worlds largest and

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

competitor in the food and beverage sector. Nestls trademark of birds in a

nest, derived from Henri Nestls personal coat of arms, evokes the values

upon which he founded his Company.


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Namely, the values of security, maternity and affection, nature and

nourishment, family and tradition. Today, it is not only the central element

of Nestls corporate identity but serves to define the Companys products,

responsibilities, business practices, ethics and goals. In 2004, Nestl 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 Companys 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. Nestls activities

contribute to and nurture the sustainable economic development of people,

communities and nations. Above all, Nestl 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 & Cooking Aids.

Chocolates & Confectionery

Milk Products & Nutrition.

Nestle Everyday Dairy Whitener.

Nestle Everyday Ghee.

Nestle Milk.

Nestle Slim Milk.

Nestle NESVITA Pro-Heart Milk.
http://www.nestle.in/MilkProduct.aspx?OB=1&id=65http://www.nestle.in/Beverages.aspx?OB=2&ID=21http://www.nestle.in/PreparedDishes_CookingAids.aspx?OB=3&id=31http://www.nestle.in/ChocolatesConf.aspx?OB=4&id=6http://www.nestle.in/MilkProduct.aspx?OB=1&id=65http://www.nestle.in/Beverages.aspx?OB=2&ID=21http://www.nestle.in/PreparedDishes_CookingAids.aspx?OB=3&id=31http://www.nestle.in/ChocolatesConf.aspx?OB=4&id=6http://www.nestle.in/MilkProduct.aspx?OB=1&id=65http://www.nestle.in/MilkProduct.aspx?OB=1&id=65


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Nestle Fresh n Natural Dahi.

Nestle Fresh n Natural Slim Dahi.

Nestle Jeera Raita.

Nestle NESVITA Dahi.

Nestle Milkmaid fruit yoghurt. Nestle Milkmaid.

Nestle Dahi.

Nestle Neslac.

Beverages.

Nescafe Classic.

Nescafe Sunrise Premium.

Nescafe Premium.

Nescafe Cappuccino.

Nescafe Iced Tea with Green Tea.

Nescafe Iced tea.

Nescafe 3 in 1.

Prepared Dishes & Cooking Aids

Maggi 2- Minute Noodles.

Maggi Vegetable Atta Noodles.

Maggi Cuppa Mania.

Maggi Healthy soups.

Maggi sauces.

Maggi Pichkoo.

Maggi Pizza Mazaa.

Maggi magic cubes.

Maggi Sanjeevni cup soup.

Maggi Coconut milk powder.
http://www.nestle.in/Beverages.aspx?OB=2&ID=21http://www.nestle.in/PreparedDishes_CookingAids.aspx?OB=3&id=31http://www.nestle.in/Beverages.aspx?OB=2&ID=21http://www.nestle.in/PreparedDishes_CookingAids.aspx?OB=3&id=31


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Chocolates & Confectionery

Nestle Kitkat.

Nestle Kitkat chunky.

Nestle Munch.

Nestle Munch Pop Choc.

Nestle Milky bar.

Nestle Milky bar Choo.

Nestle Bar One.

Nestle Milk Chocolate.

POLO.

Nestle Eclairs.

Nestle Milky bar Eclairs.

Nestle Kit Kat

It is a crisp wafer fingers covered with chocolayer. Nestle Kit Kat has a

unique finger format with breaking ritual attached to it.

Nestle Kit Kat is one of the most successful brands in the world & every yearover 12 billion Kit Kat are consumed throughout the world.

Nestle Munch

NESTL MUNCH is wafer layer covered with delicious choco layer. It is

so crispy, light and irresistible that you just can't stop Munching.'

NESTL MUNCH is the largest selling SKU in the category!

Nestle Milky bar
http://www.nestle.in/ChocolatesConf.aspx?OB=4&id=6http://www.nestle.in/ChocolatesConf.aspx?OB=4&id=6


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NESTL MILKYBAR is a delicious milky treat, which kids love. Re-

launched in January 2006 with a Calcium Rich recipe, NESTL

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

Nestle Bar One

Is a luscious nougat and caramel with delicious choco layer. NESTL

BAR-ONE constantly reminds you that it is Time for Action'.

NESTL 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


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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. Ledby George Cadbury Junior, the Bourneville experts set out to meet the

challenge. A considerable amount of time and money was spent on research

and on new plant designed to produce the chocolate in larger quantities.

A recipe was formulated incorporating fresh milk, and production processes

were developed to produce a milk chocolate 'not merely as good as, but

better than' the imported milk chocolate'.

Four years of hard work were invested in the project and in 1905 what wasto be Cadbury's top selling brand was launched.

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

Maid became Dairy Milk, and Cadbury's Dairy Milk

, with its unique flavour and smooth creamy texture, was ready to challenge

the Swiss domination of the milk chocolate market.

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

mid twenties Cadbury's Dairy Milk gained its status as the brand leader, a

position it has held ever since.

Companys 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.


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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,

clairs 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

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.

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

categories of business, namely gums, mints, snacking and gifting. It is apart of the Cadbury Schweppes Group, world's No.1 Confectionery Company.

Cadbury Worldwide

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

regional presence in beverages in the Americas and Australia. With origins


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

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

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

around the world. We employ around 60,00people.

Their heritage starts back in 1783 when Jacob Schweppe perfected hisprocess 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

Snacks

Beverages

Candy

SNACKS:

Bytes


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BEVERAGES

Bournvita

CANDY Halls

CHOCOLATES

Dairy Milk.

5 Star.

Perk.

Celebrations.

Temptation.

Eclairs.

Gems.

Dairy Milk


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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


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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 yearsto 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


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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 flavors and the premium dark chocolate range which is exotic dark

chocolate in luscious flavors.

Temptation


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Cadbury Temptations is a range of delicious premium chocolate in five

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

Forest and Old Jamaica.


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RESEARCH METHODOLOGY

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

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

attempt has been made to present comprehensive analysis of consumption

of Cadbury and nestle chocolates consumed by the people. The data had

been used to cover various aspects like consumption, consumers

preference and customers satisfaction regarding Cadbury and Nestle

chocolates. In collecting requisite data and information regarding the topic

selected, I went to the residents of Kolkata and Delhi and collected the data.

Survey design

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

single point of time. For the purpose of present study a related sample of

population was selected on the basis of convenience.

Sample Size and Design

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

consumers were contacted on the basis of random sampling.

Research Period

Research work is only carried for 2 or 3 weeks.

Research Instrument


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

questions included were open ended, dichotomous and offered multiple

choices.

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

Primary Source:The primary data comprises information survey

of Comparative study of consumer behavior towards Nestle and

Cadbury chocolates. The data has been collected directly from

respondent with the help of structured questionnaires.

Secondary Source: The secondary data was collected from

internet,

references from library.

Data Analysis

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

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


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Analysis of the study

Liking for the Chocolates

Table-1

Liking for the Chocolate Yes NoNumber of respondents 95 5

Chart 1

From the above analysis of the given sample of 100 respondents it is

concluded that out of 100 people 95 people likes to eat chocolate while only

5 people dont prefer to eat chocolate.

Different Age Groups

Table-2

Age Groups 0-10 10-20 20-30 Above 30No. of

respondents

14 42 33 11


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Chart 2

According to the above analysis it is concluded that I have surveyed 100

respondents out of which 14, 42, 33, 11 belongs to age group 0-10, 10-20,

20-30, above30 respectively,

Preference according to age groups

Brands Age Groups0-10 10-20 20-30 Above 30

Cadbury 7 35 24 5Nestle 5 6 8 5

No Consumption 2 1 1 1


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Chart 3

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

groups prefer mostly Cadbury brand of chocolate while Nestle brand is least

preferred by the age group between 10-20. People of age group above 30

equally like to have both brands.

Brand preference

Table-4

Brands Preference by ConsumersCadbury 73Nestle 22

Chart 4

From the above analysis of given sample of 93 respondents who eat

chocolates it is concluded that only 22 people prefer to eat Nestle

chocolates while 73 people likes to eat Cadbury chocolates.


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Purchase of Cadbury Chocolates

Table-5

Cadbury ChocolatesSub Brands No. of respondents

Dairy Milk 695 Star 64Perk 61

Celebrations 49Temptations 41

Chart 5

From the above analysis of given sample of 73 respondents who eat

Cadbury chocolates it is concluded that mostly people has purchased Dairy

Milk sub-brand of Cadbury while Temptation is least purchased by the

people.


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Purchase of Nestle Chocolates

Table-6

Nestle ChocolatesSub Brands No. of respondents

Kit Kat 17Munch 19

Milky Bar 18Bar One 16

Milk Chocolates 11

Chart 6

From the above analysis of given sample of 22 respondents who eat Nestle

chocolates it is concluded that mostly all sub-brands are purchased by

people but top most is Munch followed by Milky Bar and Kit Kat. While

surveying we have found that many people are not aware of Milk Chocolate.


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Overall purchase of Chocolates

Table-7

Overall purchase of sub-brands of Chocolates

Sub Brands Percentage of purchaseDairy Milk 13

5 Star 12Perk 11

Celebrations 9Temptations 7

Kit Kat 10Munch 11

Milky Bar 11Bar One 9

Milk Chocolate 7

Chart 7

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

by people followed by 5 Star while Temptation and Milk Chocolate is least

purchased by people.

Preference of Sub Brands of Cadbury

Chocolates


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Cadbury ChocolatesSub

Brands

Grand total

of

Preference

Average

(Grand

total/No. of

respondents)

Ranks

Dairy Milk 315 4.3 15 Star 220 3 2Perk 176 2.4 3

Celebrations 136 1.86 4Temptation 91 1.24 5

According to the above analysis it is concluded that in Cadbury Brand, Dairy

milk is the most preferred sub-brand as it is ranked first by the

respondents. While Temptation is the least preferred sub-brand of Cadbury

chocolates.

Preference of Sub Brands of Nestle Chocolates

Nestle ChocolatesSub Brands Grand total

of

Preference

Average

(Grand

total/No. of

respondents)

Ranks

Kit Kat 70 3.18 1Munch 64 2.9 3

Milky Bar 65 2.95 2Bar-One 45 2.05 4

Milk Chocolate 30 1.36 5


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According to the above analysis it is concluded that in Nestle Brand, Munch

is the most preferred sub-brand as it is ranked first by the respondents.

While Milk Chocolate is the least preferred sub-brand of Cadbury chocolates.

Influencing Factors during purchase of Cadbury

Chocolates

Factors Grand Total Average Rank Flavor/Taste 335 4.6 1Price 235 3.2 7Quality 307 4.2 2Packaging 277 3.79 3Form 231 3.16 8

Brand 271 3.71 4Image 262 3.59 5Color 224 3.07 9Shape 213 2.92 10Quantity 262 3.59 5

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

people are influenced by flavor/taste followed by quality, packaging and

brand. Here color and shape are not all influencing people while purchasing

Cadbury chocolates.


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Influencing Factors during purchase of Nestle

Chocolates

Factors Grand Total Average Rank Flavor/Taste 100 4.5 1Price 60 2.72 5

Quality 84 3.82 2Packaging 67 3.04 9

Form 70 3.18 8Brand 83 3.77 3Image 82 3.73 4Color 73 3.32 7Shape 55 2.5 10

Quantity 80 3.64 6

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

people are influenced by flavor/taste followed by quality, brand and image.

Here packaging and shape are not all influencing people while purchasing

Nestle chocolates.

Satisfaction Factor Cadbury Chocolate

Factors Grand Total Average Rank

Flavor/Taste 334 4.6 1Price 269 3.68 5

Quality 282 3.86 2Packaging 272 3.73 4

Form 264 3.62 6Brand 282 3.86 2Image 247 3.38 10Color 259 3.55 7Shape 258 3.53 8

Quantity 255 3.49 9

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

are most satisfied with the flavor/taste of a chocolate followed by quality

and brand. It is surprising to know that although people are satisfied with

quality but unsatisfied with the quantity and image.

Satisfaction Factor Nestle Chocolate


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Factors Grand Total Average Rank Flavor/Taste 93 4.2 1

Price 68 3.09 8Quality 85 3.86 2

Packaging 66 3 10Form 68 3.09 8

Brand 76 3.45 5Image 81 3.68 3Color 73 3.32 6Shape 77 3.5 4

Quantity 73 3.32 6

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

are most satisfied with the flavor/taste of a chocolate followed by quality

and image. It is surprising to know that although people are satisfied with

quality but unsatisfied with the form and packaging.

Form Preference

Form of Chocolates No. of Respondents

Hard 35Nutties 25

Crunchy 29

Chew 20


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Chart 8

According to the above analysis it is concluded that most of the people likes

to eat hard chocolate and chew form of a chocolate is least preferred.

Pack of Chocolates preferred

Pack Size No. of RespondentsSmall 28Big 48

Family Pack 19


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Chart 9

According to the above analysis it is concluded that out of sample of 95

people who eat chocolates likes to buy big pack. Family pack is mostly

preferred by aged people only.

Promotional Offers

Promotional Offers No. of RespondentsFree Gifts 52

Price Offers 23Any Others 20

Chart 10

According to the above analysis it is concluded that out of sample of 95

people who eat chocolate 52 are attracted by free gifts, 23 by price offers

while 20 were attracted by some other reasons

Factors Affecting Purchase

Factors No. of RespondentsAdvertisement 65


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Suggestions from Friends & Relatives 16Attractive Display 11

Doctors Advice 15Brand Ambassador 9

Ingredients 25

Chart 11

According to the above analysis it is concluded that Advertisement is the

best measure to attract customers to purchase more. Its impact is much

more than other factors. While friends and relatives and brand ambassadors

also play a significant role in this regard.

Media of Advertisement

Media of Advertisement No. of RespondentsTelevision 82Newspaper 7Brochure 3Hoarding 4Display 15


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Chart 12

According to the above analysis it is concluded that television emerges asthe best media for advertisement of chocolates that compel consumers to

buy. It is much more than other ways as out of 95 respondents 82 are

attracted to by through television media while brochures are the least

attracting media.

Frequency of Consumption

Frequency of

Consumption

No. of Respondents

Once in a Fortnight 16Daily 17

Weekly 39Monthly 18

Quarterly 5


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Chart 13

According to the above analysis it is concluded that mostly people purchase

chocolates weekly. Only 15 out of 95 purchase chocolates quarterly.

Reasonable Price

Price of Chocolates No. of RespondentsBelow 5 6

5-10 2310-20 5120-30 4

Above 30 11

Chart 14


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According to the above analysis it is concluded that the consumer thinks 10-

20 Rs is the reasonable price of a chocolate. So it must be worthwhile to

know this as it may effect the sale of chocolates.

Consumers Brand Loyalty

Brand Loyalty Actions No. of

RespondentsPostpone your purchase 26

Switchover to other Brands 24Go to other shop for search or preferred Brand 45

Chart 15

According to the above analysis it is concluded that mostly people are loyal

to the brand as in the absence of availability of their preferred brand mostly

people like to search for it or they are ready to postpone their purchase.

Reaction of consumer if new brand is introduced

Shift to New Brand of the preferred No. of Respondents


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ProductNo not at all 35May consider 27No shall not 4

Cant say 29

Chart 16

According to the above analysis it is concluded that mostly people areaddicted to the same flavor or taste and they dont want to change it as out

of 95 respondents 35 are not ready to try new brand at any cost.

Reasons for not switching over to other Brands


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All the consumers why they continue to buy the old brand gave various

important reasons. The most important reasons given by the consumers

were:

Taste/Flavor.

Brand.

Image.

Quality.

Packaging.

Findings

Consumer Research: Consumer research deals with consumer and

their problems and solution to the problems. In this I came to know

about the consumers need and expectation levels regarding products

and ascertainable levels of consumer satisfaction.

Product Research: Under product research I came to know about the

modification which consumers wants as to the quality, packing, shape,

color, and quantity etc of their favorite chocolate.

Pricing Research: This includes ability to consume, to pay for the

product, how much a person can spend on his/her favorite chocolate. In

this I have tried to find out consumers price expectations and reactions.

Advertising Research: Under this I have concluded that whether the

advertisement appeals the consumers or not. This also includes

evaluating and selecting the proper media-mix and measuring

advertising effectiveness.

Conclusion


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

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

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

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

and due to its hard form. Some people often like to have a chocolate withgood flavor, quality and crunchiness so they are going towards Kit Kat and

Munch of Nestle due to its taste and crunchiness.

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

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

small and family pack.


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Suggestions & Recommendations

Company should concentrate more on television for advertisement, as

mostly people get attracted through television only.

For promotional offers, company should go for free gifts rather than going

for other ways.

Nestle company should concentrate on its packing as people are least

satisfied with it while Cadbury should concentrate on the shape of a

chocolate.

People are unsatisfied with the price and quantity of chocolate so

companies should concentrate in this regard also.


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Bibliography

www.cadburyindia.com

www.nestle.com

www.aphrodite-

chocolates.co.uk/history_chocolate.htm

www.google.com

www.cadbury.co.nz/carnival/index.htm

www.packaging-technology.com.../cadbury4.html

www.chocolatereview.co.uk

www.wikipedia.org

Annexure
http://www.cadburyindia.com/http://www.nestle.com/http://www.aphrodite-chocolates.co.uk/history_chocolate.htmhttp://www.aphrodite-chocolates.co.uk/history_chocolate.htmhttp://www.google.com/http://www.cadbury.co.nz/carnival/index.htmhttp://www.chocolatereview.co.uk/http://www.wikipedia.org/http://www.cadburyindia.com/http://www.nestle.com/http://www.aphrodite-chocolates.co.uk/history_chocolate.htmhttp://www.aphrodite-chocolates.co.uk/history_chocolate.htmhttp://www.google.com/http://www.cadbury.co.nz/carnival/index.htmhttp://www.chocolatereview.co.uk/http://www.wikipedia.org/


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Project Report on Consumer Behavior towards Nestle

& Cadbury Chocolates

1. Do you eat chocolate?

Yes No

2. Which brand chocolate do you prefer?

Cadbury Nestle

3. Which sub-brands you have purchased?

Cadbury Nestle

Dairy Milk Kit Kat

5 Star Munch

Perk Milky Bar

Celebration Bar One

Temptation Milk Chocolate

4. Rank the sub-brands of chocolates according to your preference? (1

for most preferred)


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Cadbury Nestle

Dairy Milk Kit Kat

5 Star Munch

Perk Milky Bar

Celebration Bar One

Temptation Milk Chocolate

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

Factors Very

Important

Important Normal Least

Important

None

Flavor/Taste

Price

Quality

Packaging

Form

BrandImage

Color

Shape

Quantity

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

Chocolate? (Tick in the desired column).


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7. Which form of a chocolate do you like?

Hard Nutties

Crunchy Chew

8. What pack do you purchase?

Small Big Family Pack

9. Which promotional offers attract you most?

Free Gifts Price Offer Any Other

10. Which of these factors affect your purchase?

Factors Very

Satisfied

Satisfied Normal Least

Satisfied

Cant Say

Flavor/Taste

Price

Quality

Packaging

Form

Brand

Image

Color

Shape

Quantity


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Advertisement

Suggestion from friends and relatives

Attractive Display

Doctors Advice

Brand Ambassadors

Ingredients

11. Which media of advertisement influence your purchase?

Television Newspapers Brochures

Hoarding Display

12. How frequently do you purchase chocolates?

Once in a fortnight Daily

Weekly Monthly

Quarterly

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


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Below 5 5-10 10-20

20.30 Above 30

14. If your preferred brand is not available for repeat purchase then

what will you do?

a) Postpone your purchase

b) Switch over to other brand

b) Go to the other shop to search for

your preferred brand

15. If another brand of the same product appears in the market, will you

prefer to stop buying this brand and buy the new brand?

No, not at all I may consider

No, I shall not Cant say

16. If you dont like to change to the new brand, then what are the reasons

for continuing to purchase the old brand?


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PERSONAL DETAILS

Name:

Address:

Age:

Between 0-10 10-20

20.30 Above 30

Gender:

Phone Number:

Marital status:

Education:

Profession:

THANKS

report 1 nestle vs cadbury

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