STUDY OF CONSUMER PREFERENCE TOWARDS CADBURY AND NESTLE CHOCOLATES

A report submitted to Delhi Business School, New Delhi

as a part fulfillment of

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

Submitted to: Submitted by:

Keerti Jain Ratul Bhattacharyya

Faculty: Roll No:151/9208490197

DELHI BUSINESS SCHOOL Batch: spring(09-11)

Semester:2nd

DELHI BUSINESS SCHOOL

dbs delhi business school

Delhi Business School

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

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CERTIFICATE

This is to certify that the summer training was done on” STUDY OF CONSUMER PREFERENCE TOWARDS CADBURY AND NESTLE CHOCOLATES ”Submitted to Delhi Business school, New Delhi Ratul Bhattacharyya in partial fulfillment of the award of degree of MBA& post graduate in entrepreneurship& business, is a bonafide work carried out by him under my supervision and guidance . This work has not been submitted anywhere else for any other degree /diploma. The original work was carried during 1st may to 31st June .

Date: Name of the guide: Keerti Jain

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DECLARETION

I hereby certify that the work which is being presented in the project entitled, “STUDY OF CONSUMER PREFERENCE TOWARDS CADBURY AND NESTLE CHOCOLATES. ” in partial Fulfilment of the requirements for the award degree of M.B.A [for D.B.S (New Delhi)], is an authentic record of my own work .The matter presented in this Project Report has not been submitted by me for the award of any other degree of this or any other University.

DATE:

RATUL BHATTACHARYYA

ACKNOWLEDGEMENT

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Concentration, dedication and application are necessary but not sufficient to achieve any goal. Therefore, it is our pleasant duty to offer our service of acknowledgement to those honourable personalities of the department who helped me to follow the path to success for the completion of this project.

Survey is an excellent tool for learning and 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 and perspiration, it’s not easy to achieve anything. There is always a sense of gratitude, which we express to others for the help and the needy services they render during the different phases of our lives. I too would like to do it as I really wish to express my gratitude toward all those who have been helpful to me directly or indirectly during the development of this project.

I would like to thank my faculty who was always there to help and guide me when I needed help. His perceptive criticism kept me working to make this project more full proof. I am thankful to him for his encouraging and valuable support. Working under him was an extremely knowledgeable and enriching experience for me. I am very thankful to him 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. Above all I shall thank my friends who constantly encouraged and blessed me so as to enable me to do this work successfully.

RATULBHATTACHARYYA

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INTRODUCTION

In this research I have survey the product performance and buying

behaviour of two famous brands of chocolates – Nestle and Cadbury,

which are consumed by people of all ages. During this research I have

interacted with people of “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 age groups. 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.

THE INDUSTRY SCENARIO

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With the entry of multinationals and home companies sprucing up

their act, the confectionery market is booming. McKinsey & Co. has

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

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

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

Cadbury’s - the virtual monopolist – had decided to focus its efforts

on making chocolates a distinct category with an identity of its own.

And the marketer had sharply positioned its product at children to do

that. Hence, chocolates bore an “Only for kids” tag, and kept adults at

bay. By the end of the eighties, Cadbury’s still ruled the roost with

over 80 percent market share. And though several brands - like Amul

and Campco - tried to break into the market, none of them had

succeeded in shaking the leader’s grip. In fact, Cadbury’s had become

a brand virtually generic to chocolates. Then chocolates were used to

reward and reinforce positive behaviour and hence were categorised

as a luxury reserved for special occasions. This was, a stark contrast

to the west where chocolates were snacked on, eaten as mini meals or

just to suppress pangs of hunger. But constant working by players

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

and as a casual any-time buy) and Nestle towards exploding the myth

that chocolates are meant for children only, has resulted in the

segment booming.

Trends in the Industry

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· With socio-economic changes rapidly taking place, the young and not so young population will lead a new life style and chocolate eating is definitely going to be widespread and acceptable.· In the industry, both population and family incomes as well as urbanisation are on the increase.· There has been a significant growth in the middle class, with 5.8 million people having upgraded to the quoted middle class.· There is quantified data on FMCG usage having increased (NRS-VI & IRS’98 figures) Thanks to the above reasons the growth in the chocolate market is estimated to be at 22% in 2001. But marketers in the industry are looking forward to a much higher growth rate, as India’s per capita consumption of chocolates is only 15 Gms. Versus 6 Kg in the west.

The Indian Chocolate market can be sliced into four parts.

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

CONSUMER PREFERENCE

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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 buyer’s beware or when the marketwas mainly the seller’s market. Now the whole concept of consumer’s 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 rankordering 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 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 or product promotion it is very necessary to depart its concentration towards consumerpreference.

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SCOPE OF THE STUDY

As learning is a human activity and is as natural, as breathing. Despite

of the fact that learning is all pervasive in our lives, psychologists do

not agree on how learning takes place. How individuals learn is a

matter of interest to marketers. They want to teach consumers in their

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

their products, product attributes, potential consumers benefit, how to

use, maintain or even dispose of the product and new ways of

behaving that will satisfy not only the consumer’s needs, but the

marketer’s objectives. The scope of my study restricts itself to the

analysis of consumer preferences, perception and consumption of

Cadbury and Nestle Chocolates. There are many other brands of

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

chocolates leaving behind the others. The scope of my study is also

restricts itself to Moradabad region only.

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 fulfillingthe customer needs. To study the factors affecting the consumption pattern.

LIMITATIONS OF THE STUDY

In attempt to make this project authentic and reliable, every possible aspect of the topic was kept in mind. Nevertheless, despite of fact constraints were at play during the formulation of this project. The main limitations are as follows: Due to limitation of time only few people were selected for the study. So the sample of consumers was not enough to generalize the findings of the study. The main source of data for the study was primary data with the help of self-administered questionnaires. Hence, the chances of unbiased information are less. People were hesitant to disclose the true facts. The chance of biased response can’t be eliminated though all necessary steps were taken to avoid the same.

RESEARCH METHODOLOGY

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As mentioned earlier, the objective of the study is to formulate a Marketing Strategy for any new entrant in the Indian Chocolate Industry. While recommending the said strategy detailed information from both primary and secondary sources was collected and analysed. This included:

Primary Sources

Four level primary information collections were undertaken.1. To analyse buying behaviour and in order to gain an insight into the buyer need-satisfaction level, a questionnaire was formulated and administered among 80 people. The profile of the respondents was as follows:1. Consumers of chocolates – 12 years + in KOLKATA. This wassince; chocolate consumption was witnessed amongst all agegroups.2. A distributor was also interviewed so as to get pertinent information regarding the most important ‘P’ of FMCG marketing – Place.3. Extensive interviews were conducted with retailers in the KOLKATA area. These included pan shops, grocery shops, bakeries,departmental stores, etc. They provided information on various facts of chocolate distribution such as Point-of –purchase material (dispensers etc.), infrastructure problems, critical informational regarding the policies of the present players in the market, etc.

Secondary Sources

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A 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 Cadbury’s, Nestle and indiainfoline.com, askjeeves.com· Extensive use of secondary information in the form of magazines/journals/newspapers clippings, such as Business World, Business Today, Business India, A&M, Brand Equity, Economic Times, etc.

The methodology adopted was as follows:

Industry Scenario Sketch (utilizing secondary information) Extensive Interviews held with Primary/Secondary Sources

(Companies/Chocolate manufacturers Association). Extensive retailer interviews in KOLKATA Area Formulation and administration of a questionnaire Formulation of the Recommended Strategy on the basis of the

above mentioned Primary and Secondary Information.

OBJECTIVES OF THE STUDY:

1. To get familiar with their marketing strategies separately.2. To view the segments being targeted by these brands in 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 toenter the India Chocolate Market.5. To be a relevant guide for any brand launch in India.

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Chocolate

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

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Chocolates

Chocolates! Chocolates!

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 éclair.

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 don’t need a reason,

‘Cause we can have it

Anytime, any season!

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History of chocolate:The origin of chocolate can be traced back to the ancient Maya and Aztec civilizations inCentral America, who first enjoyed “chocolati” a much-prized spicy drink made fromroasted cocoa beans.Throughout its history, whether as cocoa or drinking chocolate beverage or confectionarytreat, chocolate has been a much sought after food.The Aztec empire“Chocolate”(in the form of a luxury drink) was consumed in large quantities by theaztecs: the drink was described as “ finely ground, soft, foamy, reddish, bitter with chilliwater, aromatic flowers, vanilla and wild bee honey.The dry climate meant the Aztecs were unable to grow cocoa trees, and had to obtainsupplies of cocoa beans from “ tribute” or tradeDon CortesThe Spanish invaded Mexico in the 16th century, by this time the Aztecs had created apowerful empire, and the Spanish armies conquered Mexico. Don Cortes was madecaptain general and governor of Mexico.When he returned to Spain in1528 he loaded his galleons with cocoa beans andequipment for making the chocolate drink. Soon “chocolate” became a fashionable drinkenjoyed by the rich in Spain.Chocolate across EuropeAn Italian traveler, Francesco carletti, was the first to break the Spanish monopoly. Hehad visited Central America and seen how the Indians prepared the cocoa beans and howthey made the drink, and by 1606 chocolate was well established in Italy.

History of chocolate:The origin of chocolate can be traced back to the ancient Maya and Aztec civilizations inCentral America, who first enjoyed “chocolati” a much-prized spicy drink made fromroasted cocoa beans.Throughout its history, whether as cocoa or drinking chocolate beverage or confectionarytreat, chocolate has been a much sought after food.The Aztec empire“Chocolate”(in the form of a luxury drink) was consumed in large quantities by theaztecs: the drink was described as “ finely ground, soft, foamy, reddish, bitter with chilliwater, aromatic flowers, vanilla and wild bee honey.The dry climate meant the Aztecs were unable to grow cocoa trees, and had to obtainsupplies of cocoa beans from “ tribute” or tradeDon CortesThe Spanish invaded Mexico in the 16th century, by this time the Aztecs had created apowerful empire, and the Spanish armies conquered Mexico. Don Cortes was madecaptain general and governor of Mexico.When he returned to Spain in1528 he loaded his galleons with cocoa beans andequipment for making the chocolate drink. Soon “chocolate” became a fashionable drinkenjoyed by the rich in Spain.Chocolate across EuropeAn Italian traveler, Francesco carletti, was the first to break the Spanish monopoly. Hehad visited Central America and seen how the Indians prepared the cocoa beans and howthey made the drink, and by 1606 chocolate was well established in Italy.

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Drinking chocolateThe secret of chocolate was taken to France in 1615, when Anne, daughter of Phillip 2 ofSpain married king Louis 13 of FranceThe French court enthusiastically adopted this new exotic drink, which was consideredto have medicinal benefits as well as being a nourishing food. Gradually the custom ofdrinking chocolate spread across Europe, reaching England in the 1650’sFirst chocolate for eatingUp until this point all chocolate recipes were based on plain chocolate. It was an Englishdoctor, sir Hans’s sloane, who- after traveling in south America- focused on cocoa andfood values, bringing a milk chocolate recipe back to England.The original Cadbury milk chocolate was prepared to his recipe.History:The earliest record of chocolate was over fifteen hundred years ago in the centralAmerica rain forests, where the tropical mix of high rain fall combined with high yearround temperatures and humidity provide the ideal climate for cultivation of the plantfrom which chocolate is derived, the cacao tree.“ Chocolate is made from the cocoa bean, found in pods growing from the trunk andlower branches of the cacao tree, Latin name “ theobroma cacao” meaning “ food of thegods”Cacao was corrupted into the more familiar “ cocoa” by the early European explorers.The Maya brewed a spicy, bittersweet drink by roasting and pounding the seeds of thecacao tree with maize and capsicum peppers and letting the mixture ferment. This drinkwas reserved for use in ceremonies as well as for drinking by the wealthy and religiouselite; they also ate cacao porridge.The Aztecs, like the Mayans, also enjoyed cacao as a beverage fermented from the rawbeans, which again featured prominently in ritual and as a luxury available only to thevery wealthy. The Aztecs called this drink xocolatl, the Spanish conquistadors found thisalmost impossible to pronounce and so corrupted it to the easier “ chocolat” the Englishfurther changed this to chocolate.The Aztec’s regarded chocolate as an aphrodisiac and their emperor, Montezumareputedly drank it fifty times a day from a golden goblet and is quoted as saying ofxocolatl: “ the divine drink, which builds up resistance and fights fatigue. A cup of thisprecious drink permits a man to walk for a whole day without food”Chocolate in EuropeXocolatl! or chocolat or chocolate as it became known, was brought to Europe byCortez, by this time the conquistadors had learned to make the drink more palatable toEuropean tastes by mixing the ground roasted beans with sugar and vanilla ( a practicestill continued today), thus offsetting the spicy bitterness of the brew the Aztec’s drank.The first chocolate factories opened in Spain, where the dried fermented beans broughtback from the new world by the Spanish treasure fleets were roasted and ground, and bythe early 17th century chocolate powder – from which the European version of the drinkwas made- was being exported to other parts of Europe. The Spanish kept the source ofthe drink- the beans- a secret for many years, so successfully in fact, that when Englishbuccaneers boarded what they thought was a Spanish “ treasurer galleon” in 1579, only tofind it loaded with what appeared to be “ dried sheep’s droppings, they burned the wholeship in frustration. If only they had known, chocolate was so expensive at that time, thatit was worth it’s weight in silver ( if not gold), chocolate was treasure indeed !Within a few years, the cocoa beverage made from the powder produced in Spain hadbecome popular throughout Europe, in the Spanish Netherlands, Italy, France, Germanyand – in about 1520 – it arrived in England.

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The first chocolate house in England opened in London in 1657 followed rapidly bymany others. Like the already well established coffee houses, they were used as clubswhere the wealthy and business community met to smoke a clay pipe of tobacco,conduct business and socialize over a cup of chocolate.Back to the America’sEvent’s went full circle when English colonists carried chocolate (and coffee) with themto England’s colonies in north America. Destined to become the united states of Americaand Canada, they are now the worlds largest consumers – by far – of both chocolate andcoffee, consuming over half of the words total production of chocolate alone.The QuakersThe Quakers were, and still are, a pacifist religious sect, an offshoot of the puritans ofEnglish civil war and pilgrim fathers fame and a history of chocolate would not becomplete without mentioning their part in it. Some of the most famous names inchocolate were Quakers, who for centuries held a virtual monopoly of chocolate makingin 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 Charles1st that the Quaker’s who evolved from the puritans, first began their historic associationwith chocolate. Because of their pacifist religion, they were prohibited from many normalbusiness activities, so as an industrious people with a strong belief in the work ethic (likethe puritans), they involved themselves in food related businesses and did very well.Baking was a common occupation for them because bread was regarded as the biblical“staff of life”, and bakers in England were the first to add chocolate to cakes so it wouldbe a natural progression for them to start making pure chocolate. They were also heavilyinvolved in breakfast cereals but that’s another story.What is certain is that the fry, row tree and Cadbury families in England among others,began chocolate making and in fact Joseph fry of fry &sons (founded 1728 in Bristol,England) is credited with producing and selling the world’s first chocolate bar. Fry’s havenow all but disappeared (taken over by Cadbury) and row tree have merged Swisscompany nestle, to form the largest chocolate manufacturer in the world. Cadbury havestayed with chocolate production and are now, if not quite the largest, probably one of thebest-known chocolate makers in the world.Chocolate as we know itThe first mention of chocolate being eaten in solid form is when bakers in England beganadding cocoa powder to cakes in the mid 1600’s. Then in 1828 a Dutch chemist, Johannesvan houten, invented a method of extracting the bitter tasting fat or “cocoa butter” fromthe roasted ground beans, his aim was to make the drink smoother and more palatable,however he unknowingly paved the way for solid chocolate as we know it.Chocolate as we know it today first appeared in 1847 when fry & sons of Bristol,England – mixed sugar with cocoa powder and cocoa butter (made by the van houtenprocess) 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 firstmilk chocolate.

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CHOCOLATE PRODUCTIONThe cocoa-bean -- the heart of the sweetest delicacy in the world -- isbitter! This is why, up to the 18th century some native tribes ate only thesweetish flesh of the cocoa fruit. They regarded the precious bean aswaste or used it, as was the case among the Aztecs, as a form of currency. TheVarietiesThere are two quite different basic classifications of cocoa, under whichpractically all varieties can be categorised: Criollo and Forastero cocoas.The pure variety of the Criollo tree is found mainly in its native Equadorand Venezuela. The seeds are of finer quality than those of the Forastero variety. They have a particularly fine, mild aroma and are, therefore, used only in the productionof high-quality chocolate and for blending. However, Criollo cocoa accounts for only10% of the world crop. The remaining 90% is harvested from trees of the Forasterofamily, with its many hybrids and varieties. The main growing area is West Africa. Thecocoa tree can flourish only in the hottest regions of the world.TheHarvestImmediately after harvesting, the fruit is treated to prevent it from rotting.At fermentation sites either in the plantation or at, collecting points, thefruit is opened.FermentationThe fermentation process is decisive in the production of high quality raw cocoa. Thetechnique varies depending on the growing region.DryingAfter fermentation, the raw cocoa still contains far too much water; in fact 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 groundor on mats? After a week or so, all but a small percentage of the water has evaporated.CleaningBefore the real processing begins, the raw cocoa is thoroughly cleaned bypassing through sieves, and by brushing. Finally, the last vestiges ofwood, jute fibres, sand and even the finest dust are extracted by powerfulvacuum equipment.RoastingThe subsequent roasting process is primarily designed to develop the aroma. The entireroasting process, during which the air in the nearly 10 feet high furnaces reaches atemperature of 130 °C, is carried out automatically.CrushingandshellingThe roasted beans are now broken into medium sized pieces in the crushing machine.BlendingBefore 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 hasdeveloped for different types of cocoa.

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GrindingThe crushed cocoa beans, which are still fairly coarse are now pre-ground by specialmilling equipment and then fed on to rollers where they are ground into a fine paste. Theheat generated by the resulting pressure and friction causes the cocoa butter(approximately 50% of the bean) contained in the beans to melt, producing a thick, liquidmixture.This is dark brown in color with a characteristic, strong odour. During cooling itgradually sets: this is the cocoa paste.At this point the production process divides into two paths, but which soon join again. Apart of the cocoa paste is taken to large presses, which extract the cocoa butter. The otherpart passes through various blending and refining processes, during which some of thecocoa butter is added to it. The two paths have rejoined.CocoaButterThe cocoa butter has important functions. It not only forms part of everyrecipe, but it also later gives the chocolate its fine structure, beautifullustre and delicate, attractive glaze.Cocoa PowderAfter the cocoa butter has left the press; cocoa cakes are left which still contain a 10 to20% proportion of fat depending on the intensity of compression.These cakes are crushed again, ground to powder and finely sifted inseveral stages and we obtain a dark, strongly aromatic powder, which isexcellent for the preparation of delicious drinks - cocoa. Cocoa paste,cocoa butter, sugar and milk are the four basic ingredients for makingchocolate. By blending them in accordance with specific recipes the three types ofchocolate 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 orcondensed milk, sugar and flavouring - maybe vanilla - go into the mixer, where they arepulverized and kneaded.RollingDepending on the design of the rolling mills, three or five verticallymounted steel rollers rotate in opposite directions. Under heavy pressurethey pulverise the tiny particles of cocoa and sugar down to a size ofapprox. 30 microns. (One micron is a thousandth part of a millimetre.)ConchingBut still the chocolate paste is not smooth enough to satisfy our palates.But within two or three days all that will have been put right. For duringthis period the chocolate paste will be refined to such an extent in theconches that it will flatter even the most discriminating palate.Conches (from the Spanish word "concha", meaning a shell) is the name given to thetroughs in which 100 to 1000 kilograms of chocolate paste at a time can be heated up to80 °C and, while being constantly stirred, is given a velvet smoothness by the addition ofcertain amounts of cocoa butter. A kind of aeration of the liquid chocolate paste thentakes place in the conches: its bitter taste gradually disappears and the flavor is fullydeveloped. The chocolate no longer seems sandy, but dissolves meltingly on the tongue.It has attained the outstanding purity, which gives it its reputation.

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CONSUMPTION OF CHOCOLATES IN INDIA

Chocolate consumption in India is extremely low. Per capita consumption is around 160 gms in the urban areas, compared to 8-10kg in the developed countries. In rural areas, it is even lower. Chocolates in India are consumed as indulgence and not as a snack food. A strong volume growth was witnessed in the early 90’s when Cadbury repositioned chocolates from children to adult consumption. The biggest opportunity is likely to stem from increasing the consumer base. Leading players like Cadbury and Nestle have beenattempting to do this by value for money offerings, which are affordable to the masses.

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NESTLE’

Nestle India

Nestle’ India is a subsidiary of Nestle’ S.A. of Switzerland. The company insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships.

Nestle India- Presence Across India

Beginning with its first investment in Moga in 1961, Nestlé’s regular and substantial investments established that it was here to stay. In 1967, Nestlé set up its next factory at Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the area into soluble tea.The Nanjangud factory (Karnataka), became operational in 1989, the Samalkha factory (Haryana), in 1993 and in 1995 and 1997, Nestlé commissioned two factories in Goa at Ponda and Bicholim respectively. Nestlé India is now putting up the 7th factory at PantNagar in Uttaranchal.

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Nestle’ Story

Nestlé was founded in 1867 on the shores of Lake Geneva in Vevey, Switzerland and its first product was “Farine Lactée Nestlé”, an infant cereal specially formulated by Henri Nestlé to provide and improve infant nutrition. From its first historic merger with the Anglo-Swiss Condensed Milk Company in 1905, Nestlé has grown to become the world’s largest and most diversified food Company, and is about twice the size of its nearest competitor in the food and beverage sector. Nestlé’s trademark of birds in a nest, derived from Henri Nestlé’s personal coat of arms, evokes the values upon which he founded his Company. Namely, the values of security, maternity and affection, nature and nourishment, family and tradition. Today, it is not only the central element of Nestlé’s corporate identity but serves to define the Company’s products, responsibilities, business practices, ethics and goals. In 2004, Nestlé had around 247,000 employees worldwide, operated 500 factories in approx. 100 countries and offered over 8,000 products to millions of consumers universally. The Company’s transparent business practices, pioneering environment policy and respect for the fundamental values of different cultures have earned it an enviable place in the countries it operates in. Nestlé’s activities contribute to and nurture the sustainable economic development of people, communities and nations. Above all, Nestlé is dedicated to bringing the joy of ‘Good Food, Good Life’ to peoplethroughout their lives, throughout the world.

Nestle’ Brands

Milk Products & Nutrition Beverages Prepared Dishes and Cooking Aids Chocolates & Confectionary

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MILK PRODUCTS AND NUTRITION:NESTLÉ EVERYDAY Dairy WhitenerNESTLÉ EVERYDAY SlimNESTLÉ EVERYDAY GheeNESTLÉ MILKMAIDNESTLÉ Fresh 'n' Natural DahiNESTLÉ Fresh 'n' Natural Slim DahiNESTLÉ Jeera RaitaNESTLÉ MILKMAID Fruit yoghurtNESTLÉ MilkNESTLÉ Slim Milk

BEVERAGES:NESCAFÉ CLASSICNESCAFÉ SUNRISENESTLÉ MILONESCAFÉ 3 in 1NESCAFÉ Koolerz

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

CHOCOLATES & CONFECTIONARYNESTLÉ KIT KATNESTLÉ KIT KAT LITENESTLÉ MUNCHNESTLÉ MUNCH POP CHOCNESTLÉ MILKYBARNESTLÉ MILKYBAR CHOONESTLÉ BAR-ONENESTLÉ FUNBARNESTLÉ Milk ChocolatePOLOPOLO PowermintNESTLÉ Eclairs

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NESTLEKITKAT

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

NESTLE MUNCH

NESTLÉ MUNCH is wafer layer covered with delicious choco layer. NESTLÉ MUNCH is so crisp, light and irresistible that you just ‘can't stop Munching.' NESTLÉ MUNCH is the largest selling SKU in the category!

NESTLE MILKY BAR:

NESTLÉ MILKYBAR is a delicious milky treat, which kids love. Relaunched in January 2006 with a Calcium Rich recipe, NESTLÉ MILKYBAR is a favorite with parents to treat their kids with.

NESTLE BAR-ONE

is a luscious nougat and caramel with delicious choco layer. NESTLÉ BAR-ONE constantly reminds you that it is ‘Time for Action'.

NESTLE Milk Chocolate:

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

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CADBURY

How Cadbury Chocolate is made

Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder John paste to the dark chocolate recipe of cocoa mass, cocoa butter and sugar. By today's standards this chocolate was not particularly good: it was coarse and dry and not sweet or milky enough for public tastes. There was a great deal of competition from continental manufacturers, not only the French,but also the Swiss, renowned for their milk chocolate. Led by George Cadbury Junior, the Bournville experts set out to meet the challenge. A considerable amount of time and money was spent on research and on new plant designed to produce the chocolate in larger quantities. A recipe was formulated incorporating fresh milk, and production processes were developed to produce a milk chocolate 'not merely as good as, but better than' the imported milk chocolate'.

Four years of hard work were invested in the project and in 1905 whatwas to be Cadbury's top selling brand was launched. Three names were considered: Jersey, Highland Milk and Dairy Maid. Dairy Maid became Dairy Milk, and Cadbury's Dairy Milk, with its unique flavour and smooth creamy texture, was ready to challenge the Swiss domination of the milk chocolate market. 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.

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COMPANY OVERVIEW OF CADBURY INDIA

Cadbury began its operations in 1948 by importing chocolates and then re-packing them before distribution in the Indian market. After 59 years of existence, it today has five company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). The corporate office is in Mumbai.Currently Cadbury India operates in three sectors viz. Chocolate Confectionery, Milk Food Drinks and in the Candy category.In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk, Éclairs and Celebrations. Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world! Their flagship brand Cadbury Dairy Milk is considered the "gold standard" for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian consumer. In the Milk Food drinks segment their main product is Bournvita - the leading Malted Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is the undisputed leader.The Cadbury India Brand Strategy has received consistent support through simple but imaginative extensions to product categories and distribution. A good example of this is 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 SaltedBagged Snack Brands. Bytes was first launched in South India in 2003.Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over two decades, it has worked with the Kerala Agriculture University to undertake cocoa research and released clones, hybrids that improve the cocoa yield. Today, Cadbury is poised in its leap towards quantum growth and new categories of business, namely gums, mints, snacking and gifting. It is a part of the Cadbury Schweppes Group, world's No.1 Confectionery Company.

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CADBURY WORLD WIDE

Cadbury is the world's largest confectionery company and have a strong regional presence in beverages in the Americas and Australia.

With origins stretching back over 200 years, today their products -which include brands such as Cadbury, Schweppes, Halls, Trident, Dr Pepper, Snapple, Trebor, Dentyne, Bubblicious and Bassett - are enjoyed in almost every country around the world. We employ around 60,00 people. Their heritage starts back in 1783 when Jacob Schweppe perfected his process for manufacturing carbonated mineral water in Geneva, Switzerland. And in 1824 John Cadbury opened in Birmingham selling cocoa and chocolate. These two great household names merged in 1969 to form Cadbury Schweppes plc. Since then they have expanded their business throughout the world by a programme of organic and acquisition led growth. Concentrating on their core brands in beverages and confectionery since the 1980s, they have strengthened their portfolio through almost fifty acquisitions, including brand icons such as Mott's, Canada Dry, Halls, Trident, Dentyne, Bubblicious,Trebor, Bassett, Dr Pepper, 7 Up and Snapple.- It employ 60,000 people in over 200 countries- Worlds No 1 Confectionery company- World's No 2 Gums company- World's No 3 beverage company

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Cadbury Brands: Chocolates Snacks Beverages Candy

SNACKS:Bytes

BEVERAGESBournvita

CANDYHalls

CHOCOLATESDairy Milk5 StarPerkCelebrationsTemptationEclairsGems

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.

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5 STAR

the second largest after Cadbury Dairy Milk with a market share of 14%, Cadbury 5 Star moves from strength to strength every year by increasing its user base. Launched in 1969 as a bar of chocolate that was hard outside with soft caramel nougat inside, Cadbury 5 Star has re-invented itself over the years to keep satisfying the consumers taste for a high quality & different chocolate eating experience. One of the key properties that Cadbury 5 Star was associated with was its classic Gold colour. And through the passage of time, this was one property that both, the brand and the consumer stuck to as a valuable association. More recently, to give consumers another reason to come into the Cadbury 5 Star fold, Cadbury 5 Star Crunchy was launched. The same delicious Cadbury 5 Star was now available with a dash of rice crispies.

PERK

Cadbury launched Perk in 1996. With its light chocolate and wafer construct, Cadbury Perk targeted the casual snacking space that was dominated primarily by chips & wafers. With the rise of more value-for-money brands in the wafer chocolate segment, Cadbury Perk unveiled two new offerings - Perk XL and XXL. In 2004, with an added dose of 'Real Cadbury Dairy Milk' and an 'improved wafer', Perk became even more irresistible.

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CELEBRATIONS

Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai and dry- fruits during festive seasons. Cadbury Celebrations is available in several assortments: An assortment of chocolates like 5 Star, Perk, Gems, Dairy Milk and Nutties and rich dry fruits enrobed in Cadbury dairy milk chocolate in 5 variants, Almond magic, raisin magic, cashew magic, nut butterscotch and caramels. The super premium Celebrations Rich Dry Fruit Collection which is a festive offering is an exotic range of chocolate covered dry fruits and nuts in various flavours and the premium dark chocolate range which is exotic dark chocolate in luscious flavours.

TEMPTATION

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

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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 andinnovative utilisation of their assets· Investing to develop people.

Finding a Market Winner

Developing a successful new product which will stand the test of time andgain a permanent place in a company’s product portfolio is not easy. Muchquoted figures estimate that it takes in the region of 58 new product ideas toend up with one successful new product and some people put the initial figureas high as 100. The majority of ideas fail early in the process – well beforethey reach the consumer. A further significant proportion fail to move from thetest market into national distribution. With the tremendous investment required for totally new products, it is essential that the whole project is carefully researched. In fact, it may take several years for a new product to grow from concept stage to national distribution. The search for a new product usually beings with an evaluation of the opportunities or gaps in the market.Successful new brands are targeted as far as possible to avoid taking marketshare from a company’s existing brands. A new sector must be created in themarket or the new product must attack competitors’ brands. Successful new product development is essentially team work involving research and development, marketing and sales, market research, production, engineering and finance. At Cadbury, in common with most companies, the marketing role is fulfilled by the Product/Brand Manager whose function is to coordinate and mastermind the project through from the initial brief to national launch, until the largest sales tonnage has been achieved.

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The initial impetus for embarking on a New Product Development project can be:· Changes in consumer lifestyles· Technology developments where new processing techniques have beendevised· The need for market extension abroad, particularly into Asia Pacific, and thedemise of trade barriers.However, products cannot be simply transferred from one market to anotherwithout review and possible adaptation to suit differing expectations andcultures.Whether the product strategy is:· Existing product improvement· New product development within the current range of activity· Production diversification

ADVERTISING & SALES PROMOTION

As we have discussed the importance of Advertising and Sales promotion inintroduction, so we know how much advertising aim sales promotion areimportant.The slogans of advertising are the tools of sales promotion are so importantwhich 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 theproduct 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 cancompel the consumer to buy the product to some extent.Now we will discuss them in details with the help of which we can easilyunderstand how these slogans can leave these impression on the customer.

·

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The Real Taste of LifeThis slogan was prepared for the first chocolate introduce by the Cadbury firsttime in India. The chocolate was ‘Dairy Milk’. This slogan says that there aremany types of products present in the market, they have different taste butDairy Milk is the best and the true taste of the life. This slogan also stands forthe victory. On electronic media, the advertisement shows that a cricketer winsthe match and after that he and his girl friend eats this product. Therefore, thisstands for victory of any body eats this product will definitely win in his life.

· Thodi Si Pet Pooja Kabhi Bhi Kahi BhiWhen Cadbury introduced its next chocolate named ‘Perk’ this slogan wereused. This explains that if anybody is hungry and he do not have any thing toeat accept this Perk then he can have this. This shows that Perk is so goodchocolate which can be used as a substitute of food and is a complete food.

· Whenever on Hunger StrikeLater on Cadbury came out with new slogan on television; the advertisementshows that few students are on hunger strike. But they had the chocolate. Thisshows that nobody can control himself/herself if this product of Cadbury islying in front of that person. This means that Cadbury product is so good thatnobody can leave it.

· Tan Ki Shakti, Man Ki ShaktiThis slogan was used for ‘Bournvita’. Bournvita is full of proteins, vitamins,minerals and all those necessary things which are useful for our body andmind. Therefore, this slogan stood best for Bournvita. TAN KI SHAKTI, meansthe energy to the body. If anybody here this product, he /she will remain activefor whole day. That person will look healthy, active and will look smart.· YEH CHOCOLATE KHAIN, AAP INHE KHAINWhen Eclairs toffee came in the market, this slogan was used. Eclairs is atoffee filled with chocolate. It means that instead of having chocolate you canhave eclairs toffee too. It a person does not want to have 12 pieces ofchocolate, can have one or two eclairs toffee.· KUCH ZADA HI SOLIDNowadays new chocolate has been introduced by the Cadbury and thisslogans going on creating demand for this new product. In this ad we can seethat one chocolate falls on a car and damages the car. This chocolate is sostrong due to lots of nuts, caramel etc. etc. present in this chocolate. This alsoshows that this is for adventurous people who love thrills, adventure etc.

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DISTRIBUTION SYSTEM ADOPTED BY CADBURY

Cadbury Schweppes pick the world number 3 soda market has aggfed to sellmost of its soft drinks business outside the US to Coca Co. for $ 1.85 billionsto 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 crushbrands and exude South Africa and France the pact which was dependent onregulatory 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 itderives two-thirds of its soft drinks sales and was a 15 per cent market shareat the same time it get Cadbury out of markets where it is growing at a slowerpace. 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 Cadbury’s systems weren’t strong enough tocompete with Coca-Cola,” said Mr. David long an analyst a HendersonCroshtwaite, “they were fighting with proper for this.

Patterns of distribution channels and types of distribution intermediaries

Manufacture↓Stockiest/Distributor↓Semi-wholesaler↓Retailer↓User

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Main steps involved in Developing the channel design

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

Qualities that Cadbury management look for while selecting dealers

· Business reputation and business standing.· Business capacity and salesmanship.· Expertise and previous experience in the line.· Financial capacity and willingness to invest in the line.· Credit worthiness.· Capacity to offer to customers : Required assortments of products. Required services.· Capacity and willingness to extend credit to customers.· Capacity to provide.(1) Storage facilities.(2) Showrooms,(3) Shops,(4) Service workshops,(5) Salesmen and(6) Service men commensurate with expected business· Social status· Good relation with:Consumer, especially, bulk consumers, and sub dealers.

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PRICING POLICIES ADOPTED BY CADBURYDespite intensifying competition for target share and a stream of newproducts, pitted against each other, the price line of popular brands ofchocolate had move upward over the past one year.Prices of key brands like Nestle’s Kitkat and Cadbury’s Dairy Milk have roseby 25 per cent each between November 2001 and November 2002.Brands such as Cadbury’s Eclairs, where the unit prices is lower, have seen asharpener price hike.A major portion of the price revision occurred in the last part of 2001 and inthe first quarter of 2002.A sharp rise in cocoa prices and rupee and depreciation escalation in inputcosts for chocolate manufacturers in the last leg of fiscal 2001-98.Whole cocoa, prices have receded from their high after September 2001,rupee depreciation and the higher incidence depreciation and the higherincidence of excise duties has kept the price line of chocolates.The cost of cocoa, the key input, accounts for around 45 per cent of themanufacturing costs for chocolates production.Domestic cocoa production (estimated at 4500) to 5000 tonnes for the currentyear) has been stagnant and takes are of less than a third of domesticrequirements of chocolate and malted food manufacturers. Manufacturerssuch as Cadbury and Nestle India import over half of this cocoa requirements.International cocoa prices moved up from 140 cents per kg in January 2001 topeak at 190 cents per kg in September 2001, prompting a round or priceincrease in chocolates in the last part of 2001.Subsequently cocoa prices have receded to around 150-160 cents per kg andare expected to rule at these levels in the near term. However, rupeedepreciation of around 17 per cent since September 2001 is likely to haveoffset the impact of this on production costs.The reclassification of the wafer-coated chocolates, making them chargeableto an excise duty of 18 per cent, against 8 per cent earlier, is also likely tocontribute to price escalation.The excise authorities have recently passed an order on Nestle, directing it topay excise dues at the higher rate of 18 per cent. The matter is now underappeal. Maximum Retail Price - based excise duties, which have been introduced on chocolates in the latest budget could also add to the production cost especially in the premium categories. Though cocoa prices have extended to rule relatively soft. The price line for chocolates appears unlikely to come down in the near future.

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FACTORS INFLUENCING PRICING OF CADBURYInternal 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 withpricing.· Composition of the product line of the firm.External Factors· Market characteristics.· Buyer’s behavior in respect of the given product.· Bargaining power of major customers.· Competitors pricing policy.· Government controls regulations on pricing.· Other relevant legal aspects.· Societal (or social) considerations.· Understanding, if any reached with price cartels.Cadbury objective of pricing· Profit maximization in the short-term.· Profit optimization in the long-term.· A minimum return (or target return) on investment.· A minimum return on sales turnover.· Targets sales volume.· Target market share.· Deeper penetration of the market.· Entering new markets.· Target profit on the entire product line irrespective of profit level in individualproducts.· Keeping competition out, or keeping it under check.· Fast turn around and early cash recovery.· Stabilizing prices and margins in the market.

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PREFER CHOCOLATES?

YESNO

figure:1

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.

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PREFERENCE OF BRAND

CADBURYNESTLE

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 company should do more advertising and sales distribution. And also should maintain quality of the product compare to the competitors.

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NESTLE

KITKATMUNCHMILKY BARBAR ONEMILK CHOCOLATE

figure:3

CADBURY

DAIRY MILK5 STARPEARKCELEBRATIONTEMPTATION

figure:4

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.

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Rank the sub-brands of chocolates according to your preference

NESTLE

RANKING SUB BRAND

KIT KATMUNCHMILKY BARBAR ONEMILK CHOCOLATE

figure:5

CADBURY

RANKING SUB BRAND

DAIRY MILK5 STARPERKCELEBRATIONTEMPTATION

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

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Which form of a chocolate do you like?

FORM OF CHOCOLATES

HARDCRUNCHYNUTTIESCHEW

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 chocolates, 29% of the consumer like crunchy chocolates, 18% of the consumer like nutties chocolates & only 6% of the consumer like Chew chocolates.

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What pack do you purchase?

SIZE OF PACK

SMALL BIGFAMILY PACK

figure:8

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

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Which promotional offers attract you most?

Sales

FREE GIFTPRICE OFFERANY OTHER

figure:9

Analysis & Interpretation:To sell out the product there are many promotions activity conducted by the company toface the competition the offer give by the company are like free gift, price offer, or anyother 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.

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Which of these factors affects your purchase?

Sales

INGREDIENCEATTRACTIVE DISPLAYBRAND AMBASSADORADVERTISEMENT

figure:10

Analysis & Interpretation:There are many factors affecting at the time of purchase. So company is doingpromotional activities to acquire the desired target of the product. Basically there are six main type of the promotional activities like 69% of the advertisement, 1% of the suggestions, 2% of the attractive display, 0%of the doctors advice, 21% of the companies are using Brand Ambassadors in there advertisement, 7% of the ingredients. So all this factors are affecting the purchase.

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Using brand ambassador by Cadbury.

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Findings

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

problems. In this we 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 consumer’s

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. From the one and half month

experience of our research project with Consumer preference towards Nestle

and Cadbury Chocolates, We have come to know lot things and it has enhanced

our knowledge to great extent. We found many things which are well executed

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

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

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They are given as under:

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

the preference of the chocolates more preferred by the consumer is Cadbury.

From the analysis we have found that Nestlé’s some brand has covered 50% of

the market in one product (Munch) of the chocolates which is a very good sign

for the company.

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

quality of the product in that matter they are not ready to compromise. And we

found both company product are very qualitative.

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

some consumer would to switchover to another product or brand.

So from these survey we have found that the consumption of the chocolates are

more in children and teenage group though having any occasion or not having

any occasion. The most selling product of both the companies is in small size of

chocolates and there market share is 73% because it’s not much costlier and is

also easily available & affordable.

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SUGGESTIONS AND RECOMMENDATIONS

Chocolates products at Mumbai city are available in comparison to previous years, but still there is requirement of development in Chocolate products. Due to increasing overall cost in Chocolate Products everywhere, cost format should be made as such that it is affordable to each and everyone in the society. In this we also found that if the demanded brand is not available, so at that time the customers switch over the brand of the chocolate so, here the company should build up the healthy distribution channel by which company can attract the customers and company loose the fear from the market. 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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CONCLUSION

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

the two products Cadbury and Nestle. It is observed that overall 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 with

good flavor, quality hard form. Some people often like to have a chocolate

with good flavor, quality 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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BIBLIOGRAPHY

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

India).

Business today

Business World,

Business India,

A&M, Brand Equity,

Economic Times

CMIE reports

www.indiainfoline.com

www.domain_b.com

www.agencyfaqs.com

www.nestle.in

www.nil.com

www.cadburys.com

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

indiainfoline.com

askjeeves.com

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