shruti mpr project
TRANSCRIPT
-
7/28/2019 Shruti MPR Project
1/44
STUDY OF CONSUMER PREFERENCE IN
CONFECTIONARY INDUSTRY
-
7/28/2019 Shruti MPR Project
2/44
INTRODUCTION
In this research I had surveyed the product performance and buying behavior of two famous
brands of chocolatesNestle and Cadbury, which are consumed by people of all ages.
During this research I had interacted with people of South Delhi. After this research I have
come to know how people perceives these products on the variables like price, quality,
advertisement, satisfaction, taste, packaging, brand loyalty etc. I have also come to know which
particular brand of chocolate is most preferred by people of different age groups.
In this research I had to survey and find out how frequently and how much chocolate people
consume, whether they buy small, big or family pack. Trend of ongoing changes in their likings
would be shown in the report. In this report I have explained the entire research and facts product
wise with the help of graphs and would compare both companies.
-
7/28/2019 Shruti MPR Project
3/44
CONSUMER PREFERENCE
All marketing starts with the consumer. So consumer is a very important person to a marketer.
Consumer decides what to purchase, for whom to purchase, why to purchase, from where to
purchase, and how much to purchase.
In order to become a successful marketer, he must know the liking or disliking of the customers.
He must also know the time and the quantity of goods and services, a consumer may purchase,
so that he may store the goods or provide the services according to the likings of the consumers.Gone are the days when the concept of market was let the buyers beware or when the market
was mainly the sellers market. Now the whole concept of consumers sovereignty prevails.
The manufacturers produce and the sellers sell whatever the consumer likes. In this sense,
consumer is the supreme in the market. As consumers, we play a very vital role in the health of
the economy local, national or international. The decision we make concerning our consumption
behavior affect the demand for the basic raw materials, for the transportation, for the banking, for
the production; they effect the employment of workers and deployment of resources and success
of some industries and failures of others. Thus marketer must understand this. Preference (or
"taste") is a concept, used in the social sciences, particularly economics. It assumes a real or
imagined "choice" between alternatives and the possibility of rank ordering of these alternatives,
based on happiness, satisfaction, gratification, enjoyment, utility they provide. More generally, it
can be seen as a source of motivation.
In cognitive sciences, individual preferences enable choice of objectives/goals. The study of theconsumer preference not only focuses on how and why consumers make buying decision, but
also focuses on how and why consumers make choice of the goods they buy and their evaluation
of these goods after use. So for success of any company or product promotion it is very
necessary to depart its concentration towards consumer preference.
-
7/28/2019 Shruti MPR Project
4/44
History of chocolate:
The origin of chocolate can be traced back to the ancient Maya and Aztec civilizations in
Central America, who first enjoyed chocolati a much-prized spicy drink made from
roasted cocoa beans.
Throughout its history, whether as cocoa or drinking chocolate beverage or confectionary
treat, chocolate has been a much sought after food.
The Aztec empire
Chocolate(in the form of a luxury drink) was consumed in large quantities by the
aztecs: the drink was described as finely ground, soft, foamy, reddish, bitter with chilli
water, aromatic flowers, vanilla and wild bee honey.
The dry climate meant the Aztecs were unable to grow cocoa trees, and had to obtain
supplies of cocoa beans from tribute or trade
Don Cortes
The Spanish invaded Mexico in the 16th century, by this time the Aztecs had created a
powerful empire, and the Spanish armies conquered Mexico. Don Cortes was made
captain general and governor of Mexico.
When he returned to Spain in1528 he loaded his galleons with cocoa beans andequipment 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
-
7/28/2019 Shruti MPR Project
5/44
Spain married king Louis 13 of France
The French court enthusiastically adopted this new exotic drink, which was considered
to have medicinal benefits as well as being a nourishing food. Gradually the custom of
drinking chocolate spread across Europe, reaching England in the 1650s
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 back to England.
The original Cadbury milk chocolate was prepared to his recipe.
Chocolate as we know it
The first mention of chocolate being eaten in solid form is when bakers in England began
adding cocoa powder to cakes in the mid 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,
Englandmixed sugar with cocoa powder and cocoa butter (made by the van houten
process) to produce the first solid chocolate bar then in1875 a Swiss manufacturer,
Daniel peters, found a way to combine (some would say improve, some would say ruin)
cocoa powder and cocoa butter with sugar and dried milk powder to produce the first
milk chocolate.
CONSUMPTION OF CHOCOLATES IN INDIA
-
7/28/2019 Shruti MPR Project
6/44
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 from children to
adult consumption. The biggest opportunity is likely to stem from increasing the consumer base.
Leading players like Cadbury and Nestle have been
attempting to do this by value for money offerings, which are affordable to the masses.
NESTLE
-
7/28/2019 Shruti MPR Project
7/44
Nestle India
Nestle India is a subsidiary of Nestle S.A. of Switzerland. The company insists on honesty,
integrity and fairness in all aspects of its business and expects the same in its relationships.
Nestle India- Presence Across India
Beginning with its first investment in Moga in 1961, Nestls regular and substantial investments
established that it was here to stay. In 1967, Nestl set up its next factory at Choladi (Tamil
Nadu) as a pilot plant to process the tea grown in the area into soluble tea.
The Nanjangud factory (Karnataka), became operational in 1989, the Samalkha factory
(Haryana), in 1993 and in 1995 and 1997, Nestl commissioned two factories in Goa at Ponda
and Bicholim respectively. Nestl India is now putting up the 7th factory at Pant
Nagar in Uttaranchal.
Nestls Philosophy
-
7/28/2019 Shruti MPR Project
8/44
When Henri Nestle introduced the first commercial infant formula in 1867, he also
created a symbol of the Bird's nest, graphic translation of his name, which personifies the
company's business. The symbol, which is universally understood, evokes security, motherhood
and affection, nature and nourishment, family and tradition. Today it is the central element of
Nestls corporate identity and closely parallels the company's corporate values ad culture.
Mission Statement
At Nestl, our research makes it possible for everyone to enjoy better food for a better
life.
Good Food is the primary source of Good Health throughout life. We strive to bring
consumers foods that are safe, of high quality and provide optimal nutrition to meet
physiological needs. In addition to nutrition, health and wellness, Nestl products bring
consumers the vital ingredients of taste and pleasure.
-
7/28/2019 Shruti MPR Project
9/44
As consumers continue to make choices regarding foods and beverages they consume, Nestl
helps provide selections for all individual taste and lifestyle preferences.
Research is a key part of our heritage at Nestl and an essential element our future. We knowthere is still much to discover about health, wellness and the role of food in our lives, and we
continue to search for answers to bring consumers Good Food for Good Life.
Promote awareness of the effect of our lifestyle both on ourselves and on our environment. Exist as a financially successful, non-hierarchical, democratic organization where workers
participate in the creation and running of their working Environment, as an example to
encourage others to do likewise.
Provide an environment that encourages and helps people to develop and achieve theirpotential.
Actively support co-operatives, fair trade, environmental issues and community activities.
Vision Statement
To be a leading, competitive, Nutrition, Health and Wellness Company delivering improvedshareholder value by being a preferred corporate citizen, preferred employer, preferred supplier
selling preferred products.
BOARD OF DIRECTORS
NESTLE INDIA Ltd.
-
7/28/2019 Shruti MPR Project
10/44
Name
Designation
Antonio Helio Waszyk
Chairman and Managing director
Pradip BaijiaNon Executive Director
Ravinder NarainNon Executive Director
Rakesh MohanNon Executive Director
Christian Schmid
Director (Technical)
Name Designation
Shobinder DuggalDirector
Michael W O Garrett Non Executive Director
Richard Sykes
Alternate Director
Swati A Piramal Non Executive Director
Nestle Brands
Milk Products & Nutrition
Beverages
http://connect.in.com/antonio-helio-waszyk/profile.htmlhttp://connect.in.com/ravinder-narain/profile-501281.htmlhttp://connect.in.com/rakesh-mohan/profile.htmlhttp://connect.in.com/christian-schmid/profile.htmlhttp://connect.in.com/shobinder-duggal/profile-503160.htmlhttp://connect.in.com/michael-w-o-garrett/profile-497575.htmlhttp://connect.in.com/richard-sykes/profile.htmlhttp://connect.in.com/swati-a-piramal/profile.htmlhttp://connect.in.com/swati-a-piramal/profile.htmlhttp://connect.in.com/richard-sykes/profile.htmlhttp://connect.in.com/michael-w-o-garrett/profile-497575.htmlhttp://connect.in.com/shobinder-duggal/profile-503160.htmlhttp://connect.in.com/christian-schmid/profile.htmlhttp://connect.in.com/rakesh-mohan/profile.htmlhttp://connect.in.com/ravinder-narain/profile-501281.htmlhttp://connect.in.com/antonio-helio-waszyk/profile.html -
7/28/2019 Shruti MPR Project
11/44
Prepared Dishes and Cooking Aids
Chocolates & Confectionary
MILK PRODUCTS AND NUTRITION:
NESTL EVERYDAY Dairy Whitener
NESTL EVERYDAY Slim
NESTL EVERYDAY Ghee
NESTL MILKMAID
NESTL Fresh 'n' Natural Dahi
NESTL Fresh 'n' Natural Slim Dahi
NESTL Jeera Raita
NESTL MILKMAID Fruit yoghurt
NESTL MilkNESTL Slim Milk
BEVERAGES:
NESCAF CLASSIC
NESCAF SUNRISE
NESTL MILO
NESCAF 3 in 1
NESCAF Koolerz
PREPARED DISHES AND COOKING AIDS
MAGGI 2-MINUTE Noodles
MAGGI Vegetable Atta Noodles
MAGGI Dal Atta Noodles
MAGGI Rice Noodles Mania
MAGGI Sauces
MAGGI Pizza Mazza
MAGGI Healthy Soups
MAGGI Healthy Soup- Sanjeevni
MAGGI MAGIC Cubes
-
7/28/2019 Shruti MPR Project
12/44
CHOCOLATES & CONFECTIONARY
NESTL KIT KAT
NESTL KIT KAT LITE
NESTL MUNCH
NESTL MUNCH POP CHOC
NESTL MILKYBAR
NESTL MILKYBAR CHOO
NESTL BAR-ONE
NESTL FUNBARNESTL Milk Chocolate
POLO
POLO Powermint
NESTL Eclairs
NESTLEKITKAT
Are crisp wafer fingers covered with choco layer? NESTL KIT KAT has a unique finger
format with a breaking' ritual attached to it.
NESTL KIT KAT is one of the most successful brands in the world and every
year over 12 billion NESTL KIT KAT fingers are consumed around the globe.
NESTLE MUNCH
NESTL MUNCH is wafer layer covered with delicious choco layer. NESTL MUNCH is so
crisp, light and irresistible that you just can't stop Munching.' NESTL MUNCH is the largest
selling SKU in the category!
-
7/28/2019 Shruti MPR Project
13/44
NESTLE MILKY BAR:
NESTL MILKYBAR is a delicious milky treat, which kids love. Relaunched 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'.
CADBURY
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. Our core purpose Working together to create brands people
love captures the spirit of what we are trying to achieve as a business. We collaborate and work
as teams to convert products into brands. Simply put, we spread happiness! 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
-
7/28/2019 Shruti MPR Project
14/44
Celebrations. Cadbury enjoys a value market share of over 70% the highest Cadbury brand share
in the world! Our 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 our main product is Bourn vitathe leading Malted Food Drink
(MFD) in the country. Similarly in the medicated candy category Halls is the undisputed leader.
We recently entered the gums category with the launch of our worldwide dominant bubble gum
brand Bubbaloo. Bubbaloo is sold in 25 countries worldwide. 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 untilnow by Salted Bagged Snack Brands. Bytes were first launched in South India in 2003.
MALANPUR FACTORY
In 1989 the company stated manufacturing operations from its third and newest factory at
Malanpur near Gwalior in M.P.
Using the most modern state of the art technology, the unit today manufactures range of liquid
milk chocolate and a variety of enrobed chocolate products.
Factory in 8 phases
1988-89 - clairs & Gems
1994-95 - 5 Star
-
7/28/2019 Shruti MPR Project
15/44
1997 - Perk
2001 - Chocolate expansion
2005 - Fruity Gems
2006 - Ultra Perk
2008 - Short
2009 - clair Sticks
LOCATION : Plot No. 25, Malanpur Industrial area, Malanpur distt.Bhind.
Telephone No. : 07539-83803, 83804
Parent Company : Cadbury Schweppes International UK
Total Area 24 AcresConstructed 8.5 Acre
HISTORY OF ORGANISATION
Fifty years ago, the real taste of chocolate as we know it today, landed on Indian shores. An
event that carried forward the entrepreneurship and vision born as far back as 1824, when John
Cadbury set up shop in Birmingham (UK) to sell among other things his own cocoa
concoction. From these modest beginnings emerged Cadbury Schweppes that is today the
leading manufacturer of confectionery and beverages in the United Kingdom. A company that
has its presence in over 200 countries worldwide and has made the name Cadbury synonymous
with cocoa products in countries across the planet.
This is the brand that came to India in 1947 to a nation that was in its infancy, a market that was
ready for the world and a people that were open to new ideas, new products.
Within a year of being set up as a trading concern, Cadbury fry India was incorporated as a
Private Limited company, set up for processing imported chocolates and Bourn vita. The same
year saw the launch of Cadburys Milk chocolate for millions of Indians.
-
7/28/2019 Shruti MPR Project
16/44
Through 50 years of investment in capital and marketing, the scale and scope of our operations
has expanded to cover a range of brands in the chocolate, sugar confectionery and malted food
drinks segments. We have a majority share in the Indian chocolate market and a significant
presence in sugar confectionery and food drinks.
Today Cadbury India Ltd, a subsidiary of Cadbury Schweppes employs over 200 people across
the country. And operates in one of the fastest growing chocolate markets for Cadbury
Schweppes group across the globe.
-
7/28/2019 Shruti MPR Project
17/44
ORGANISATION STRUCTURE
Chairman
C Y PalChairman -Non Executive
Managing Director
Anand KripaluManaging Director
Non-Executive Directors
Harsh MariwalaRadhakrishnan B. MenonSuresh Talwar
ExecutiveDirectors
Atul BhatiaExecutive Director -
Science & Technology
Rajesh GargExecutive Director -
Finance & Commercial
-
7/28/2019 Shruti MPR Project
18/44
Jaiboy PhillipsExecutive Director - Supply Chain
Sanjay PurohitExecutive Director -
arketing
Sunil SethiExecutive Director -
Sales & Customer Development
V ChandramouliExecutive Director -
HR & Strategy
-
7/28/2019 Shruti MPR Project
19/44
Cadbury Brands:
Chocolates
Snacks
Beverages
Candy
SNACKS:
Bytes
BEVERAGES
Bournvita
CANDY
Halls
CHOCOLATES
Dairy Milk5 Star
Perk
Celebrations
Temptation
Eclairs
Gems
-
7/28/2019 Shruti MPR Project
20/44
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 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.
-
7/28/2019 Shruti MPR Project
21/44
5 STAR
the second largest after Cadbury Dairy Milk with a market share of 14%, Cadbury 5 Star moves
from strength to strength every year by increasing its user base. Launched in 1969 as a bar of
chocolate that was hard outside with soft caramel nougat inside, Cadbury 5 Star has re-invented
itself over the years to keep satisfying the consumers taste for a high quality & different
chocolate eating experience. One of the key properties that Cadbury 5 Star was associated with
was its classic Gold colour. And through the passage of time, this was one property that both, the
brand and the consumer stuck to as a valuable association. More recently, to give consumersanother 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
-
7/28/2019 Shruti MPR Project
22/44
Cadbury launched Perk in 1996. With its light chocolate and wafer construct, Cadbury Perk
targeted the casual snacking space that was dominated primarily by chips & wafers. With the rise
of more value-for-money brands in the wafer chocolate segment, Cadbury Perk unveiled two
new offerings - Perk XL and XXL. In 2004, with an added dose of 'Real Cadbury Dairy Milk'
and an 'improved wafer', Perk became even more irresistible.
CELEBRATIONS
Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai and dry-
fruits during festive seasons. Cadbury Celebrations is available in several assortments: An
assortment of chocolates like 5 Star, Perk, Gems, Dairy Milk and Nutties and rich dry fruits
enrobed in Cadbury dairy milk chocolate in 5 variants, Almond magic, raisin magic, cashew
magic, nut butterscotch and caramels. The super premium Celebrations Rich Dry Fruit
Collection which is a festive offering is an exotic range of chocolate covered dry fruits and nuts
in various flavours and the premium dark chocolate range which is exotic dark chocolate in
luscious flavours.
-
7/28/2019 Shruti MPR Project
23/44
TEMPTATION
Cadbury Temptations is a range of delicious premium chocolate in fiveflavours variants - Roast Almond Coffee, Honey Apricot, Mint Crunch, Black
Forest and Old Jamaica.
V I S I O N
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 newer markets
Sustained growth of their market share through aggressive product development
Striving for international quality in their products and processes
Focusing on cost competitiveness and productivity in their operations and
innovative utilisation of their assets
Investing to develop people.
-
7/28/2019 Shruti MPR Project
24/44
ADVERTISING & SALES PROMOTION
As we have discussed the importance of Advertising and Sales promotion in
introduction, so we know how much advertising aim sales promotion are
important.
The slogans of advertising are the tools of sales promotion are so important
which 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 introducing the
product 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 they can
compel the consumer to buy the product to some extent.
Now we will discuss them in details with the help of which we can easily
understand how these slogans can leave these impression on the customer.
-
7/28/2019 Shruti MPR Project
25/44
DISTRIBUTION SYSTEM ADOPTED BY CADBURY
Cadbury Schweppes pick the world number 3 soda market has aggfed to sell
most of its soft drinks business outside the US to Coca Co. for $ 1.85 billions
to finance a head on battle with Coke in the No. 1 soda makers home market.
The agreements included the Schwoers Dr. Pepper chanda dry and crush
brands and exude South Africa and France the pact which was dependent on
regulatory approval was likely to be concealed in mid 1999 Cadbury said.
The more will allow Cadbury to expand it Dr. Peeper business in US where it
derives two-thirds of its soft drinks sales and was a 15 per cent market share
at the same time it get Cadbury out of markets where it is growing at a slower
pace. The shares rose as much as 70.5 per cent or 7.5 per cent or 7.5 percent 1002.
This sort out the places where Cadburys systems werent strong enough to
compete with Coca-Cola, said Mr. David long an analyst a Henderson
Croshtwaite, they were fighting with proper for this.
. FACTORS INFLUENCING PRICING OF CADBURY
Internal 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 production differentiation practiced by the
firm.
Other elements of the marketing mix of the firm and their interaction with
pricing.
-
7/28/2019 Shruti MPR Project
26/44
Composition of the product line of the firm.
External Factors
Market characteristics.
Buyers 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 in individual
products.
Keeping competition out, or keeping it under check.
Fast turn around and early cash recovery.
Stabilizing prices and margins in the market.
-
7/28/2019 Shruti MPR Project
27/44
CHAPTER-2
RESEARCH OBJECTIVES
& METHODOLOGY
-
7/28/2019 Shruti MPR Project
28/44
OBJECTIVES OF THE STUDY
This project is based on the comparative study consumer behavior towards Nestle and Cadbury
chocolates. Objectives of the study are:
1. To get familiar with their marketing strategies separately.
2. To view the segments being targeted by these brands in the market.
3. Up to what extent do the public respond to their products?
4. To prepare a marketing plan for any brand that is planning to
enter the India Chocolate Market.
5. To be a relevant guide for any brand launch in India.
RESEARCH METHODOLOGY
As mentioned earlier, the objective of the study is to formulate a Marketing Strategy for any new
entrant in the Indian Chocolate Industry.
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 SOUTH DELHI Area Formulation and administration of a questionnaire
-
7/28/2019 Shruti MPR Project
29/44
Formulation of the Recommended Strategy on the basis of the above mentioned Primaryand Secondary Information.
Types of Research:
There are certain types of research which can be classified according to their very purpose as
well as by the research strategy used. A research can be classified into the following categories:
Exploratory research Conclusive research (Descriptive research ) Explanatory research
1. Exploratory research:
Exploratory research is an initial research which explores the possibility of obtaining as
many relationships as possible between different variables without knowing their end-use
applications. Here, a general study will be conducted without having any specific objectives.
2. Conclusive research (Descriptive research):
In this type of research, problem of a research is formulated and specific objectives are
established. This type of research may be a result of exploratory research. At the, the research
draws definite and concrete conclusion(s) for implementation.
3. Explanatory research:
Here, in this type of research, the emphasis is given on studying a situation or a
problem in order to explain the relationship between two or more than two particular variables.
In short, situation is there, and you are just expected to explain the situation in order to reveal the
solutions.
Our research project falls in the both second and third categories. Its a combination of both
types of research. As the project has definite problems and specific objectives, our project is of
descriptive, in nature. At the end of our research, an attempt would be made to explain the
preference of customers towards NESTLE & CADBURY.
-
7/28/2019 Shruti MPR Project
30/44
METHOD OF DATA COLLECTION
Data gathering is a very important part of the research project process. It is through data, withthe help of which we would be able to analyze the problem in terms of facts and figures.
Actually, the reliability of research decisions depends on the quality of data gathered. By
taking this concept into consideration, the data can be classified into primary data and secondary
data.
While recommending the said strategy detailed information from both primary and secondary
sources was collected and analysed. This included:
Primary Sources
To analyse buying behavior and in order to gain an insight into the buyer need-satisfaction level,
a questionnaire was formulated and administered among 80 people.
A distributor was also interviewed so as to get pertinent information regarding the most
important P of FMCG marketing Place.
Extensive interviews were conducted with retailers in the SOUTH DELHI area. These included
pan shops, grocery shops, bakeries, departmental stores, etc. They provided information on
various facts of chocolate distribution such as Point-ofpurchase material (dispensers etc.),
infrastructure problems, critical informational regarding the policies of the present players in the
market, etc.
Secondary SourcesA number of secondary sources of information were used. These were:
Information: Industry statistics, problems facing the industry, future outlook, etc. Also measures
being adopted for cocoa production development.
Internet websites Of Cadburys, Nestle and indiainfoline.com, askjeeves.com
-
7/28/2019 Shruti MPR Project
31/44
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.
SAMPLE SIZE
At the planning stage of a statistical investigation part, the question of sample size is very
critical. If the sample size is large, there could be a waste of money, energy and resources, and if
it is small, it doesnt make any sense of practical use in making good decisions. So, the sampleshould be taken in such a way that it can bring fair, accurate level of accuracy and unbiased
results.
The objective of taking sample was to obtain desirable level of accuracy and confidence with
minimum of cost, time, and energy.
A sample of 100 people was taken on the basis of the formula calculation. The actual consumers
would be contacted on the basis of random sampling. The target people will be anyone who eats
Cadbury or nestle chocolate only.
SAMPLING METHOD
A sample is a representative part of the population. In sampling technique, information is
collected only from a representative part of the universe and the conclusions are drawn on that
basis for the entire universe.
A convenience sampling technique was used to collect data from the respondents.
-
7/28/2019 Shruti MPR Project
32/44
CHAPTER-3
DATA PROCESSING ,
ANALYSIS &
INTERPRETATION
-
7/28/2019 Shruti MPR Project
33/44
Data Analysis:
The data is analyzed on the basis of suitable tables by using mathematical techniques.
The technique that I will use is bar technique for comparing the different chocolates under each
brand i.e. Cadbury and nestle.
figure:1
PREFER CHOCOLATES?
YES
NO
-
7/28/2019 Shruti MPR Project
34/44
Analysis & interpretation:
Chocolate is a product which is like by the all age group of people. According to the survey 83%
of people says yes they eat chocolate and 17% say no they are not eating chocolate. May be the
reason behind that is they are not eating chocolate on daily or weakly basis or may be they are
eating any other brand of chocolate.
Preference of brand
-
7/28/2019 Shruti MPR Project
35/44
figure:2
Analysis & Interpretation:
There are many brands available in the market. But the market leaders in India are basically two
brands like Cadbury & Nestle. According to survey 64% of the market is captured by the
Cadbury and only 36% of the market is covered by the Nestle. To capture the market the
PREFERENCE OF BRAND
CADBURY
NESTLE
-
7/28/2019 Shruti MPR Project
36/44
company should do more advertising and sales distribution. And also should maintain quality of
the product compare to the competitors.
Consumption of sub-brands of NESTLE & CADBURY
figure:3
figure:4
NESTLE
KITKAT
MUNCH
MILKY BAR
BAR ONE
MILK CHOCOLATE
CADBURY
DAIRY MILK
5 STAR
PEARK
CELEBRATION
TEMPTATION
-
7/28/2019 Shruti MPR Project
37/44
Analysis & Interpretation:
In 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 about Cadbury 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%, perk 14%, celebration 2% and Temptation 5%. According to the survey the
highest selling product is Cadbury.
Rank the sub-brands of chocolates according to your preference
NESTLE
figure:5
CADBURY
RANKING SUB BRAND
KIT KAT
MUNCH
MILKY BAR
BAR ONE
MILK CHOCOLATE
-
7/28/2019 Shruti MPR Project
38/44
figure:6
Analysis & Interpretation
In this survey I found that the most selling product is Munch the sub-brand of Nestle the Munch
has capture the 50% of the market as compared to the Cadbury product the highest selling
product of Cadbury is Dairy milk which captured the market stake of 47% which is as compared
to Much 20%less which is a good sigh for Nestle and the less consumption of the Nestle product
is Milk bar & Milk Chocolate the market share is only 3% and in Cadbury less selling product
are Celebration and Temptation the reason behind
this is they are too Costly to consume. And it can only use occasionally.
RANKING SUB BRAND
DAIRY MILK
5 STAR
PERK
CELEBRATION
TEMPTATION
-
7/28/2019 Shruti MPR Project
39/44
Which form of a chocolate do you like?
figure:7
Analysis & interpretation:
Every person have there own taste and preferences towards the eatable product in chocolates
there are four varieties available in the market among this 47% of the consumer like hard
FORM OF CHOCOLATES
HARD
CRUNCHY
NUTTIES
CHEW
-
7/28/2019 Shruti MPR Project
40/44
chocolates, 29% of the consumer like crunchy chocolates, 18% of the consumer like nutties
chocolates & only 6% of the consumer like Chew chocolates.
What pack do you purchase?
figure:8
SIZE OF PACK
SMALL
BIG
FAMILY PACK
-
7/28/2019 Shruti MPR Project
41/44
Analysis & Interpretation:
The chocolates are available in the market in different packaging like small, big, & family pack,
from the survey we can say that the consumption of the chocolates are more eaten by the teenage
group so they more prefer the small packaging because of there availability in market is good
and most important thing is its very much affordable. According to the survey 73% are using
small pack, 17% are using big pack of the chocolates, 10% are consuming family pack because
of there high price. So we can easily see that the consumption of small pack is having boom in
the market compare to other packaging
-
7/28/2019 Shruti MPR Project
42/44
Which promotional offers attract you most?
figure:9
Analysis & Interpretation:
To sell out the product there are many promotions activity conducted by the company to
face the competition the offer give by the company are like free gift, price offer, or any
other scheme. In this 12% are giving the free gift offer (scratch the card scheme), 84%
are directly giving the price offer, and 4% giving the any other kind of scheme.
Sales
FREE GIFT
PRICE OFFER
ANY OTHER
-
7/28/2019 Shruti MPR Project
43/44
Which of these factors affects your purchase?
figure:10
Analysis & Interpretation:
There are many factors affecting at the time of purchase. So company is doing
promotional activities to acquire the desired target of the product. Basically there are six main
type of the promotional activities like 69% of the advertisement, 1% of the suggestions, 2% of
Sales
INGREDIENCE
ATTRACTIVE DISPLAY
BRAND AMBASSADOR
ADVERTISEMENT
-
7/28/2019 Shruti MPR Project
44/44
the attractive display, 0%of the doctors advice, 21% of the companies are using Brand
Ambassadors in there advertisement, 7% of the ingredients. So all this factors are affecting the
purchase.