Chocolate Overview

History of chocolate: The origin of chocolate can be traced back to the ancient Maya and Aztec civilizations in Central America, who first enjoyed chocolaty a muchprized 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 chili water, aromatic flowers, vanilla and wild bee honey. The dry climate meant the Aztecs were unable to grow cocoa trees, and had to obtain supplies of cocoa beans from tribute or trade Don 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 and equipment for making the chocolate drink. Soon chocolate became a fashionable drink enjoyed by the rich in Spain. Chocolate across Europe An Italian traveler, Francesco carletti, was the first to break the Spanish monopoly. He had visited Central America and seen how the Indians

prepared the cocoa beans and how they made the drink, and by 1606 chocolate was well established in Italy. Drinking chocolate The secret of chocolate was taken to France in 1615, when Anne, daughter of Phillip 2 of Spain married king Louis 13 of France. The French court enthusiastically adopted this new exotic drink, which was considered to have medicinal benefits as well as being a nourishing food. 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. History: The earliest record of chocolate was over fifteen hundred years ago in the central America rain forests, where the tropical mix of high rain fall combined with high year round temperatures and humidity provide the ideal climate for cultivation of the plant from which chocolate is derived, the cacao tree. Chocolate is made from the cocoa bean, found in pods growing from the trunk and lower branches of the cacao tree, Latin name theobroma cacao meaning food of the gods Cacao was corrupted into the more familiar cocoa by the early European explorers. The Maya brewed a spicy,

bittersweet drink by roasting and pounding the seeds of the cacao tree with maize and capsicum peppers and letting the mixture ferment. This drink was reserved for use in ceremonies as well as for drinking by the wealthy and religious elite; they also ate cacao porridge. The Aztecs, like the Mayans, also enjoyed cacao as a beverage fermented from the raw beans, which again featured prominently in ritual and as a luxury available only to the very wealthy. The Aztecs called this drink chocolat, the Spanish conquistadors found this almost impossible to pronounce and so corrupted it to the easier chocolat the English further changed this to chocolate. The Aztecs regarded chocolate as an aphrodisiac and their emperor, Montezuma reputedly drank it fifty times a day from a golden goblet and is quoted as saying of xocolat: the divine drink, which builds up resistance and fights fatigue. A cup of this precious drink permits a man to walk for a whole day without food Chocolate in Europe Xocolat or chocolat or chocolate as it became known, was brought to Europe by Cortez, by this time the conquistadors had learned to make the drink more palatable to European tastes by mixing the ground roasted beans with sugar and vanilla ( a practice still continued today), thus offsetting the spicy bitterness of the brew the Aztecs drank. The first chocolate factories opened in Spain, where the dried fermented beans brought back from the new world by the Spanish treasure fleets were roasted and ground, and by the early 17th century chocolate powder from which the European version of the drink

was made- was being exported to other parts of Europe. The Spanish kept the source of the drink- the beans- a secret for many years, so successfully in fact, that when English buccaneers boarded what they thought was a Spanish treasurer galleon in 1579, only to find it loaded with what appeared to be dried sheeps droppings, they burned the whole ship in frustration. If only they had known, chocolate was so expensive at that time, that it was worth its weight in silver (if not gold), chocolate was treasure indeed! Within a few years, the cocoa beverage made from the powder produced in Spain had become popular throughout Europe, in the Spanish Netherlands, Italy, France, and Germany and in about 1520 it arrived in England. The first chocolate house in England opened in London in 1657 followed rapidly by many others. Like the already well established coffee houses, they were used as clubs where 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 Americas Events went full circle when English colonists carried chocolate (and coffee) with them to Englands colonies in North America. Destined to become the United States of America and Canada, they are now the worlds largest consumers by far of both chocolate and coffee, consuming over half of the words total production of chocolate alone. The Quakers The Quakers were, and still are, a pacifist religious sect, an offshoot of the puritans of English civil war and pilgrim fathers fame and a history of chocolate would not be complete without mentioning their part in it. Some

of the most famous names in chocolate were Quakers, who for centuries held a virtual monopoly of chocolate making in the English speaking world fry, Cadbury and row tree are probably the best known. Its probably before the time of the English civil war between parliament and King Charles 1st that the Quakers who evolved from the puritans, first began their historic association with chocolate. Because of their pacifist religion, they were prohibited from many normal business activities, so as an industrious people with a strong belief in the work ethic (like the puritans); they involved themselves in food related businesses and did very well. Baking was a common occupation for them because bread was regarded as the biblical staff of life, and bakers in England were the first to add chocolate to cakes so it would be a natural progression for them to start making pure chocolate. They were also heavily involved in breakfast cereals but thats 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 worlds first chocolate bar. Frys have now all but disappeared (taken over by Cadbury) and row tree have merged Swiss company nestle, to form the largest chocolate manufacturer in the world. Cadbury have stayed with chocolate production and are now, if not quite the largest, probably one of the best-known chocolate makers in the world. Chocolate as we know 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
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the bitter tasting fat or cocoa butter from the roasted ground beans, his aim was to make the drink smoother and more palatable, however he unknowingly paved the way for solid chocolate as we know it. Chocolate as we know it today first appeared in 1847 when fry & sons of Bristol, England mixed sugar with cocoa powder and cocoa butter (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.

How Chocolate is Made ?

The cocoa-bean -- the heart of the sweetest delicacy in the world -- is bitter! This is why, up to the 18th century some native tribes ate only the sweetish flesh of the cocoa fruit. They regarded the precious bean as waste or used it, as was the case among the Aztecs, as a form of currency. The Varieties There are two quite different basic classifications of cocoa, under which practically all varieties can be categorized: Criollo and Forastero cocoas. The pure variety of the Criollo tree is found mainly in its native Equador and Venezuela. The seeds are of finer quality than those of the Forastero variety. They have a particularly fine, mild aroma and are, therefore, used only in the production of high-quality chocolate and for blending. However, Criollo cocoa accounts for only 10% of the world crop. The remaining 90% is harvested from trees of the Forastero family, with its many hybrids and

varieties. The main growing area is West Africa. The cocoa tree can flourish only in the hottest regions of the world. The Harvest Immediately after harvesting, the fruit is treated to prevent it from rotting.At fermentation sites either in the plantation or at, collecting points, the fruit is opened. Fermentation The fermentation process is decisive in the production of high quality raw cocoa. The technique varies depending on the growing region. Drying After fermentation, the raw cocoa still contains far too much water; in fact about 60%. Most of this has to be removed. What could be more natural than to spread the beans out to dry on the sun-soaked ground or on mats? After a week or so, all but a small percentage of the water has evaporated. Cleaning Before the real processing begins, the raw cocoa is thoroughly cleaned by passing through sieves, and by brushing. Finally, the last vestiges of wood, jute fibres, sand and even the finest dust are extracted by powerful vacuum equipment. Roasting The subsequent roasting process is primarily designed to develop the aroma.The entire roasting process, during which the air in the nearly 10 feet high furnaces reaches a temperature of 130 C, is carried out automatically.

Crushing and shelling The roasted beans are now broken into medium sized pieces in the crushing machine. Blending Before grinding, the crushed beans are weighed and blended according to special recipes. The secret of every chocolate factory lies in the special mixing ratios, which it has developed for different types of cocoa. Grinding The crushed cocoa beans, which are still fairly coarse are now pre-ground by special milling equipment and then fed on to rollers where they are ground into a fine paste. The heat generated by the resulting pressure and friction causes the cocoa butter (approximately 50% of the bean) contained in the beans to melt, producing a thick, liquid mixture. This is dark brown in color with a characteristic, strong odour. During cooling it gradually sets: this is the cocoa paste. At this point the production process divides into two paths, but which soon join again. A part of the cocoa paste is taken to large presses, which extract the cocoa butter. The other part passes through various blending and refining processes, during which some of the cocoa butter is added to it. The two paths have rejoined.

CocoaButter The cocoa butter has important functions. It not only forms part of every recipe, but it also later gives the chocolate its fine structure, beautiful lustre and delicate, attractive glaze. Cocoa Powder After the cocoa butter has left the press; cocoa cakes are left which still contain a 10 to 20% proportion of fat depending on the intensity of compression. These cakes are crushed again, ground to powder and finely sifted in several stages and we obtain a dark, strongly aromatic powder, which is excellent for the preparation of delicious drinks - cocoa. Cocoa paste, cocoa butter, sugar and milk are the four basic ingredients for making chocolate. By blending them in accordance with specific recipes the three types of chocolate are obtained which form the basis of ever product assortment, namely: Kneading In the case of milk chocolate for example, the cocoa paste, cocoa butter, powdered or condensed milk, sugar and flavouring - maybe vanilla - go into the mixer, where they are pulverized and kneaded. Rolling Depending on the design of the rolling mills, three or five vertically mounted teel rollers rotate in opposite directions. Under heavy pressure they pulverise the tiny particles of cocoa and sugar down to a size of approx. 30 microns. (One micron is a thousandth part of a millimeter.)

Conching But still the chocolate paste is not smooth enough to satisfy our palates.But within two or three days all that will have been put right. For during this period the chocolate paste will be refined to such an extent in the conches that it will flatter even the most discriminating palate. Conches (from the Spanish word "conch a", meaning a shell) is the name given to the troughs in which 100 to 1000 kilograms of chocolate paste at a time can be heated up to 80 C and, while being constantly stirred, is given a velvet smoothness by the addition of certain amounts of cocoa butter. A kind of aeration of the liquid chocolate paste then takes place in the conches: its bitter taste gradually disappears and the flavor is fully developed. The chocolate no longer seems sandy, but dissolves meltingly on the tongue.It has attained the outstanding purity, which gives it its reputation.

Consumption of Chocolates in India

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

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Cadbury
Process of Manufacturing Cadbury Chocolate: 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 Bourneville experts set out to meet the challenge. A considerable amount of time and money was spent on research and on new plant designed to produce the chocolate in larger quantities. A recipe was formulated incorporating fresh milk, and production processes were developed to produce a milk chocolate 'not merely as good as, but better than' the imported milk chocolate'. Four years of hard work were invested in the project and in 1905 what was 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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Cadbury India Cadbury began its operations in 1948 by importing chocolates and then repacking 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, clairs and Celebrations. Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world! Their flagship brand Cadbury Dairy Milk is considered the "gold standard" for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian consumer. In the Milk Food drinks segment their main product is Bournvita - the leading Malted Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is the undisputed leader. The Cadbury India Brand Strategy has received consistent support through simple but imaginative extensions to product categories and distribution. A good example of this is the development of Bytes Crispy wafers filled with coca cream in the form of a bagged snack, Bytes is positioned as "The new concept of sweet snacking". It delivers the taste of chocolate in the form of a light snack, and thus heralds the entry of Cadbury India into the growing bagged Snack Market, which has been dominated until now by Salted Bagged Snack Brands. Byte was first launched in South India in 2003.Since
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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. 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 60,000 people. Their heritage starts back in 1783 when Jacob Schweppes 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,
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Trident, Dentyne, Bubblicious, Trebor, Bassett, Dr Pepper, 7 Up and Snapple. - It employs 60,000 people in over 200 countries - Worlds No 1 Confectionery company - World's No 2 Gums company - World's No 3 beverage company

Cadbury Chocolates
Dairy Milk The story of Cadbury Dairy Milk started way back in 1905 at Bourneville, U.K., but the journey with chocolate lovers in India began in 1948. The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens & adults. Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a delightful combination of milk chocolate and white chocolate. Giving consumers an exciting reason to keep coming back into the fun filled world of Cadbury. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market. 5 Star 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.
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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-formoney 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.
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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 Ever see people hide away their chocolate since they dont want to share it! If you have, then its likely to be a bar of Cadbury Temptations! Cadbury Temptations is a range of delicious premium chocolate in five flavours. Research revealed a niche segment of chocoholics - those exposed to international chocolates and those who love a variety of chocolates but possibly find the price of international chocolates too high. Cadbury Temptations is a range targeted at this segment of discerning chocolate lovers. The Cadbury Temptations range is available in 5 delicious flavour variants Roast Almond Coffee, Honey Apricot, Mint Crunch, Black Forest and Old Jamaica. With its international quality chocolate Temptations soon became a popular brand for "chocoholics".

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SWOT analysis of Cadbury Strength

1. Very strong brand equity in India. 2. Due to its 54 years presence in India has deep penetration 2100 distributors; 450,000 retailers, 60 mid urban (22%) customers. 3. Three sectors; Chocs (70% share), Confec (4%), food drinks (14% - leader in brown segment). 4. Low cost of production due to economic of scale. That means higher profits and / or more competitioners. Better market penetration.
5. Second

best manufacturing location throughout Cadbury

Schweppes. Weakness 1. Poor technology in India compared to current international technologies (Godiva, Mozart, Fazer, Dint, Naushans, etc...) 2. Ltd. Key products, only one central brand (CDM). Pralines range totally wising in India.
3. Make in India tag once the economy opens up wore and imports

rush in.

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Opportunities
1. Tremendous scope for per capita consumption (160 gms of 8 10 kg) 2. Increasing per capita national income resulting in higher disposable income. 3. Growing middle class and growing urban population. 4. Increasing gifts cultures. 5. Substitute to Mithais with higher calories/cholesterol. 6. Increasing departmental stores concept impulse @ at cash counters. 7. Globalisation: optimal use of global Cadbury Schweppes.

Threats
a) Major :-

None. Due to low cost and highest brand equity, it is today in India.
b) Minor :-

Globalization will being in better brands for upper end of the market (Liest, Monarch, Godiva, etc).

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Marketing Mix of Cadbury

Product Satisfaction suffices. But delight dazzles the average company will compete for customer by conforming to her expectation consistently. But the winner will surpass them by constantly exceeding her expectation, delivering to her door step additional benefits which she would never have imagined possible. Cadburys offer such product. The wide variety products offered by the company include: I. Chocolate & Confectionary 1) Dairy Milk 2) 5 Star 3) Temptation 4) Perk 5) Gems 6) Eclairs 7) Celebrations II. Beverages 1) Bournvita 2) Drinking chocolate

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Pricing Make no mistake. Second P of marketing is not another name for blindly lowering prices and relying on this strategy alone to increase sales dramatically. The strategy used by Cadburys is for matching the value that customer pays to buy the product with the expectation they have about what the production is worth to them. Cadburys has launched various products which cater to all customer segments. So every customer segment has different price expectation from the product. Therefore maximizing the returns involves identifying right price level for each segment, and then progressively moving through them. Dairy Milk Perk 5 Star Friut and Nut Gems Temptation Bournvita (500 gm) Drinking chocolate Rs. 22 Rs. 10 Rs. 10 Rs. 28 Rs. 10 Rs. 55 Rs. 104 Rs. 50

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Physical Distribution Place BRAND ISNT THE ONLY ANY MORE. Marketers and finance manager need a new term to evaluate their business: Distribution Equity. It takes much more time and effort to build, but once built, distribution equity is much together to erode. The fundamental axiom of Indian consumer market is this: You can set up a state-of the-art manufacturing facility, hire the hottest strategies on the block, swamp prime television with best Ads, but the end of it all, you would be know of selling your products. The cardinal task before the Indian market is managing is to shoe-horn its product on retail shelves. Buyers are paying for distribution equity not brand equity and market shares. Why does the company need distribution equity more anything in India? With technology and competitive pressure slash in it is becoming increasing difficult for marketers to retain a unique product differentiation for ling period. In a product and price parity situation, the brand that sells more is the one that reaches the highest number of customers. India 1 billion people, 155 million household has over 4 million retail outlets in 5351 urban markets and 552725 villages, spread cross 3.28 million sq. km. television has already primed and population for consumption, and the marketer who can get to the to the consumer ahead of competition will give a hard to overtake lead. But getting their means managing wildly different terrains-climate, language, value system, life style, transport and communication network.

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And your brand equity isnt going to help when it comes to tackling these issues. Own distribution network consist of clearing and forwarding (C&F) agents & distribution stockiest. This network of distribution can either contact wholesalers and which in turn retailers or the distributors can contact to the retailers directly. Once the stock product reaches retailers, the prospective customers can have access to the product. Cadburys distributes the product in the manner stated above. Cadburys distribution network has expanded from 1990 distributors last year to 2100 distributors and 4,50,000 retailers. Beside use of TI tom improves logistics, Cadbury is also attempting to improve the distribution quality. To address the issue of product stability, it has installed visi colors at several outlets. This helps in maintaining consumption in summer when sales usually drops due to the fact that the heal effects product quality and thereby off takes. Looking at the low penetration of the chocolate, a distribution expansion would itself being incremental volume. The other reason is arch rival Nestle reaches more than a million retailers. This increase in distribution is going to be accompanied by reduction in channel costs. Cadburys marketing costs, at 18% of total costs, is much higher than Nestls 12% or even pure sugar confectionery major Parrys 11%. The company is looking to reduce this parity level. At Cadbury, they believe that selling confectionery is it like selling soft drinks.

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Promotion If an advertisement is to communicate effectively, the receiver must at least half want it to, and be prepared too take step toward the sender. Effective advertising is rarely hectoring or loudly explicit. It often both attracts and generates arm feelings. More often than not, a successful campaign has a stronger element of the unexpected a quality that good advertising shares with much worthwhile literature. To penetrate into the inner recesses of her memory, communication must first ensure exposure, grab her attention evoke her comprehension, grab her acceptance and then extract retention competing with thousands of other units of communication trying to do the same. Finding showed that the adults felt too conscious to be seen consuming a product actually meant for children. The strategic response address the emotional appeal of the band to the child within the adult. Naturally, that produced just the value vacuum that Cadbury was looking to fill. Thereafter it was the job of the advertising to communicate customer the wonderful feeling that he could experience by re-discoursing the careful, unself conscious, pleasure seeking child within himself a graft these feeling onto the Ad campaign like Khane Walon Ko Khane Ka Bahana Chahiye for CMD and Thodi Si Pet Pooja Kabhi Bhi Kahin Bhi for Perk have been sure shot winner with the audience. Whirl with the new launched temptations with the slogan Too To Share the communication resolves around the reluctance of a person whos got their hand on a bar of temptation to let anyone else to have a bite.

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As well as outdoor and radio ads, ad agency contract has created communication for cinemas and even ATM machines for the brand. All ICICI s ATM a message flashes on the screen as soon as customer insert his ATM card. It tells the customer that this would be good time to get out of her temptation since he/she is bound to be alone. Something familiar is planned for phone-book as well. In cinemas, Cadbury has a message onscreen just before the lights are dimmed to give them a chance to get their temptations. There will also be after dinner sampling in restaurants to begin with, 30 catteries in Mumbai have been selected. The next round of activity will include the wafer-chocolate Perk and the Picnic bar, which has faced problems with its taste, because of the peanut it contains. Milk treat has also been launched in a module bar form, just in time of Diwali gifting market. clairs has got potential for much wide distribution, in a small sweets that airlines, hostels, and up market retail outlet offer to guest and customers. Ad spend in 2000 was about 14% of sales and the management said that plans to maintain as spend at this level in the current year also. Ad since any discussion today would be incomplete without mention e word, the management plans to tap this new channel of marketing. Beside three company website (i.e. www.cadburyindia .com, wwww.bourvita.com, www.cadburygift.com that the company has launched, it had also entered into various marketing relationship with other portals, specially targeted during festivals and events such as Valentines day , etc. Its a combination of spiffing up its key brand, researching and improving the newer products that havent taken off, supported with high ad spends

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that Cadbury hopes will see it emerges stronger after the current slowdown, as well as expand the market.

Positioning
In the 1970s consumers were ready to pay more for more, and luxury goods flourished. In the 1980s, consumers began to demand more for same, and the discounting era grew strong. Todays consumer demanding more for less, and the winner will be that super value marketers. Some of todays most successful companies recognize those customers are more educated and able to recognize true customer value Positioning is simply concentrating on an idea or even a word defines that company in the mind of the consumer. It is more efficient to market one successful concept to one large group of people than 50 product or service ideas to 50 separate group repositioning is a must when customer attitude have changed and product have strayed away from the consumers long standing perception of them Cadburys is an anchor in sea of confectionary products. As a variety of competitive claims assails her senses, today customer uses complicated decision making process to assess the alternative before making a purchase. Since Cadburys is more clearly associated with a particular set of attributes in terms of benefits and prices, the quicker becomes her search process. Positioning of individual product: 1) CDM: is and always remain flagship brand. The punch by the company for advertising this product life. Real taste of Life, itself defines the positioning of the product. The chocolate is meant for all

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age groups. It symbolizes fun, enjoyment, good items. It has goodness of milk, taste and appetite appeal. 2) 5 star: although positioned internationally as an energy bar, 5 star was positioned on an emotional platform in India during the late 1980s. Symbolizing togetherness, 5 star was originally targeted at teenagers. In June 1994, the company reworked the strategy for 5 star to make it a source of energy. In fact, before the launch of Perk, 5 stars energy bar positioning made it a snacking chocolate. 3) clairs: competing in the chewable toffees segment. clairs was relaunched during the mid-nineties with a new name, Dairy Milk clairs. 4) Gems: broadcasting Gems, though, didnt prove to be feasible proposition for Cadbury. Targeted at children under 12 years with Gems Bond advertising. Cadbury decided to too teenagers with the Smart Very Smart campaign. But now, the company is retargeting children with its animated commercial. Gems are the best brand to speak to children. Colorful chocolate buttons appeal most to children and that is why Cadbury is re-targeting children. 5) Crackle: it was the first Cadburys chocolate to have crunch in it. It was targeted as a funky chocolate to add spark to life.26 6) Perk: in September, 1995, Cadbury preempted the launch of Nestls Kit-Kat by rushing a new brand, Perk into the market. Positioned much further on the functional scale than 5 star, Perk was meant to be light snack-product for subduing the first pangs of hunger.

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7) Bournvita: positioned as tasty health drink. While its competitors concentrated only on health aspect, Bournvita combined the nutritious value with taste.

Segmentation
Market place for any product is comprised of many different segments of consumers, each with different needs and wants. Markets segmentation can be defined in a number of ways such as: Demographic variables (e.g. Consumers are groups, gender, material states income etc) The lifestyle of consumers (i.e. their interests and activities) the benefits which consumers look for in a product or on the occasions when the product might be consumed. Cadbury takes into account all these factors when producing a range of products. It targets different segments within the market, such as the. Break segment products which are normally consume as a snatched break and often with tea and coffee, for example Cadburys Perk and snack range. Impulse segment these products are often purchase on impulse, eating these and then. They include product such as Cadburys Dairy Milk. Take home segment this describes product that are normally purchased in supermarkets, taken home consumed at a later stage.

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Cadbury New Launch

Cadbury Bournville Fine Dark Chocolate now in India Globally, dark chocolate is the fastest growing segment within the confectionary category. It is loved by millions of consumers because of the rich taste and intrinsic health and well-being benefits . The launch of Cadbury Bournville Fine Dark Chocolate in India is timely, as it will cater to the evolving consumer preferences and serve as a treat for consumers looking for a moment of sheer indulgence. Made from the finest ingredients, each individually presented Cadbury Bournville Fine Dark Chocolate is an irresistible in-the-mouth delight specially created to savour the Indian palate. And with 44% cocoa from the worlds finest Ghana beans and an ever so smooth texture, each little chunk is dark and undeniably good. A natural source of anti-oxidants, Cadbury Bournville Fine Dark Chocolate just makes you feel good about giving in to your chocolate cravings. Dark Chocolate acts as a mood-booster; by boosting serotonin and endorphin levels that generate the feel-good factor. This more than a perfect bar of dark chocolate turns the simple act of eating it into a form of art. It demands a certain ritual, where, in a way, each of its steps offers a tribute to every stage of your journey. Speaking on the launch, Anand Kripalu, Managing Director Indian SubContinent, Cadbury Ltd. said This launch is our commitment to innovation and to meet the ever-changing consumer needs in our market. The dark chocolate category will grow strongly in the coming years because of its

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sophisticated taste and health benefits, and Bournville is our special offering to capture this opportunity. The Cadbury Bournville Fine Dark Chocolate will appear on shelves in modern retail outlets across major cities in the country. Cadbury Bournville Fine Dark Chocolate will be available in four different variants Rich Cocoa (80g), Almond, Hazelnut and Raisin & Nut (90g each) and will retail at Rs. 75. Cadbury launches 'CADBURY LITE' Cadbury India Limited, India's leading confectionery company today announced the launch of a new offering ' Cadbury Lite ' to satiate the craving for 'Something Meetha'. This special offering from Cadbury is sure to bring joy to millions of people, who can now enjoy the authentic taste of milk chocolate with `No added sugar'. Cadbury Lite is the first 'No added sugar' product in the Cadbury India portfolio and will mark the company's foray in catering to specific dietary needs of consumers. Cadbury Lite contains a sugar substitute called Maltitol, which ensures the product has a low glycemic index. Commenting on the launch, Anand Kripalu, Managing Director Cadbury India, said, "As India's most loved confectionery brand, Cadbury has touched the heart of every Indian for over 59 years. We are now delighted to offer this special addition that delivers the great Cadbury chocolate taste, while caring for the special dietary needs of people" Cadbury Lite is currently being launched in Tamil Nadu and Andhra Pradesh markets and will roll out to the other states in a phased manner. The 40g bar is priced at Rs. 28.
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Cadbury's Brand Management Strategies

"Typically, we always talk about chocolates being eaten when everyone is happy. And this is something advertising has always mirrored. But we found that chocolates are eaten under diverse conditions and moods - when people are anxious, when they are sad, when happy - a whole range of emotions. Now if you take a distillation of this thought, chocolate is a true soulmate. Someone who is with you through the ups and downs of life, helping you bounce back. And that's what Cadbury's Dairy Milk (CDM) is - a special friend. This is the thought that we have captured through different humanrelationship plots. We are just showing the way CDM features in the consumer's life." In March 2002, India's number one chocolate company Cadbury India Ltd. (CIL), launched a new advertisement campaign for its flagship chocolate brand, Cadbury's Dairy Milk (CDM). The campaign featured a television (TV) commercial that was significantly different from the company's earlier commercials for the brand. It featured Cyrus Broacha1 interviewing college students and asking why they liked to eat CDM. This was followed by college students 'singing' their excuses for eating CDM. Just as the commercial seems all set to end with the students and Cyrus singing the famous CDM theme, 'Khane Walon Ko Khane Ka Bahaana Chaahiye' (those who want to eat, will find excuses), a student comes up and questions Cyrus, 'Kyon Chaahiye?' (Why does one need an excuse to eat CDM)? The advertisement aimed at conveying the idea that no specific occasion is required for consuming CDM. This was a significant departure from CIL's strategy of appealing to

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adults in India, who sought a rational justification for indulging in chocolate consumption. A source at CIL's advertising agency, O&M, explained, "The format (excuses campaign) was not giving the brand a chance to explore. And the formatting was having a marginal negative impact, especially among the youth, who still form some 70-80% of CDM's audience. Today, CDM is competing with colas, snacks and burgers. And there is a feeling that perhaps these products are speaking a lingo that is closer to the youth, and that CDM might not be connecting with the youth as well. Hence the change in format." Even as company watchers were analyzing this shift, CIL launched another campaign for CDM, which completely did away with the 'Khaanewaalon Ko...' campaign. The TV commercials that were a part of this campaign featured the tagline, 'Saath Rahe Har Pal' (accompany you every moment). Many people in corporate circles wondered why CIL had abandoned its carefully built up and highly successful four-year-old "excuses" campaign. Few analysts felt that the company had been forced to reposition the CDM brand due to the severe competition from posed by archival Nestle India. Others were commented that CIL was only trying to infuse fresh life into CDM and give it a contemporary image. However, this radical shift was necessitated not by external circumstances but by series of changes that had taken place within the company. Background Note CIL and the Cadbury's brand are synonymous with chocolate in the minds of Indian consumers. A part of the leading US-based global confectionery and

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beverages major, the Cadbury Schweppes group, CIL has been the leader in the Indian chocolate market for many decades. The company began manufacturing operations in Mumbai in 1946. CIL was initially incorporated as a wholly owned subsidiary of Cadbury Schweppes in 1948 and was called Cadbury Fry (India) Ltd. The first product to be launched in the country was the globally successful brand, CDM. In the early 1960s, CIL shifted its manufacturing base to a plant in Thane, Maharashtra. The plant, which expanded substantially over the years, manufactured a range of CIL products. The company's R&D and engineering development divisions were also located in Thane. In the 1960s, CIL launched a range of products such as Crackle, 5 Star, Gems, Tiffins, Nutties, Butterscotch and Caramels. Most of these products became instant successes and led to rapid growth in chocolate consumption in India. Following this, the company launched Cadbury's Eclairs in 1972, priced at 25 paise. Eclairs, Cadbury chocolate, was a runaway success, despite being priced higher than the available sugar confectioneries in the market at that time. In 1978, Cadbury Schweppes had to dilute 60% of its equity in Cadbury Fry to comply with FERA guidelines.4 Cadbury Schweppes's stake in CIL was further diluted to 40% in 1999... Reinventing The Brands Ceaselessly CIL launched a number of new products in 1998, such as Picnic (a chocolate bar with wafer, peanuts, raisins and caramel), Byte (a strawberry flavoured candy), English Toffee (a chewy toffee) and Cadbury Gold (a CDM with a soft center). While Picnic was promoted as a 'solid, filling and ingredient-

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packed' chocolate, Cadbury Gold was promoted through an 'emotional' appeal. The advertisement featured a woman by a poolside eating a bar of Cadbury Gold and fantasizing about being in the men's changing room, with the men running desperately to cover themselves. The commercial ended with the woman smiled in a self-chiding but mischievous manner. This advertisement aimed at changing the existing brand image in the consumer's mind (of family values and wholesomeness), by emphasizing self-indulgence and mood-upliftment. Cadbury Gold thus tried to add a new dimension to traditional CIL brand values of family values and wholesomeness. Much to the company's dismay, these new products failed to click with the consumers, largely because of their taste. During that same period (the late 1990s) Nestle's range of snack-substituting chocolates such as Charge, Nuts, KitKat orange and Crunch, ate into the share of most of CIL's new launches (Picnic and Cadbury Gold were eventually discontinued)... A Change in Focus Puri changed CIL's vision statement from 'A Cadbury in every pocket' to 'Life full of Cadbury and Cadbury full of life.' As a result, the company shifted its focus from launching new brands to rejuvenating and strengthening the existing brands (CDM, 5-Star, Perk, Gems and Eclairs). In addition, CIL planned to extend its reach to semi-urban and rural markets. Puri said, "Small towns present tremendous opportunities." CIL also decided to sell its products through 'non-traditional' outlets like music stores (such as MusicWorld), malls, renowned bookstores and popular apparel outlets (such as Pantaloons and Wills Sport boutiques)...
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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, 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. Nestles Story Nestl was founded in 1867 on the shores of Lake Geneva in Vevey, Switzerland and its first product was Farine Lacte Nestl, an infant cereal specially formulated by Henri Nestl to provide and improve infant nutrition. From its first historic merger with the Anglo-Swiss Condensed Milk Company in 1905, Nestl has grown to become the worlds largest and most diversified food Company, and is about twice the size of its nearest competitor in the food and beverage sector. Nestls trademark of birds in a nest, derived from Henri Nestls personal coat of arms, evokes the values upon which he founded his Company.

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Namely, the values of security, maternity and affection, nature and nourishment, family and tradition. Today, it is not only the central element of Nestls corporate identity but serves to define the Companys products, responsibilities, business practices, ethics and goals. In 2004, Nestl had around 247,000 employees worldwide, operated 500 factories in approx. 100 countries and offered over 8,000 products to millions of consumers universally. The Companys transparent business practices, pioneering environment policy and respect for the fundamental values of different cultures have earned it an enviable place in the countries it operates in. Nestls activities contribute to and nurture the sustainable economic development of people, communities and nations. Above all, Nestl is dedicated to bringing the joy of Good Food, Good Life to people throughout their lives, throughout the world.

Nestle Chocolates
Nestle Kit Kat Are crisp wafer fingers covered with choco layer. Nestle Kit Kat has a unique finger format with a breaking' ritual attached to it. Nestle Kit Kat is one of the most successful brands in the world and every year over 12 billion Nestle Kit Kat fingers are consumed around the globe. Nestle Munch Nestle Munch is wafer layer covered with delicious choco layer. Nestle Munch is so crisp, light and irresistible that you just can't stop Munching.' Nestle Munch is the largest selling SKU in the category!

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Nestle MilkyBar Nestle MilkyBar is a delicious milky treat, which kids love. Relaunched in January 2006 with a Calcium Rich recipe, Nestle MilkyBar is a favorite with parents to treat their kids with. Nestle Bar-One Is a luscious nougat and caramel with delicious choco layer. Nestle Bar-One constantly reminds you that it is Time for Action'. Nestle Milk Chocolate Nestle Milk Chocolate is a milk chocolate with a delicious taste. Kids just love it!

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SWOT Analysis of Nestle

Strengths
1) Parent support - Nestle India has a strong support from its parent

company, which is the worlds largest processed food and beverage company, with a presence in almost every country. The company has access to the parents hugely successful global folio of products and brands. 2) Brand strength - In India, Nestle has some very strong brands like Nescafe, Maggi and Cerelac. These brands are almost generic to their product categories. 3) Product innovation - The Company has been continuously introducing new products for its Indian patrons on a frequent basis, thus expanding its product offerings. 4) Operated factories in 77 countries (all six continents), a truly global company. 5) Considered the innovation leader in the global food and nutrition sector(3500 scientist in company R&D network) 6) Low cost operators (beat the competition by producing low cost products, edging ahead with low operating costs) Weaknesses 1) Exports The companys exports stood at Rs 2,571 m at the end of 2003 (11% of revenues) and continue to grow at a decent pace. But a major portion of this comprises of Coffee (around 67% of the exports were that of Nescafe instant to Russia). This constitutes a big chunk of

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the total exports to a single location. Historically, Russia has been a very volatile market for Nestle, and its overall performance takes a hit often due to this factor.
2) Supply chain -The Company has a complex supply chain management

and the main issue for Nestle India is traceability. The food industry requires high standards of hygiene, quality of edible inputs and personnel. The fragmented nature of the Indian market place complicates things more.
3) Some of their product were positioned as too scientific, and

consumers didnt quite understand (i.e. LC-1 was a food and not a drug) Opportunities
1) Expansion - The Company has the potential to expand to smaller

towns and other geographies. Existing markets are not fully tapped and the company can increase presence by penetrating further. With India's demographic profile changing in favor of the consuming class, the per capita consumption of most FMCG products is likely to grow. Nestle will have the inherent advantage of this trend.
2) Product offerings - The Company has the option to expand its product

folio by introducing more brands which its parents are famed for like breakfast cereals, Smarties Chocolates, Carnation, etc.
3) Global hub - Since manufacturing of some products is cheaper in

India than in other South East Asian countries, Nestle India could become an export hub for the parent in certain product categories.

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4) Health-based products are becoming more popular in the world, including in the United States 5) Unaffected by current economic conditions (its share of the UK confectionery market rise to 15.6 per cent with a 0.5 per cent growth this year)

Threats
1) Competition - The Company faces immense competition from the

organized as well as the unorganized sectors. Off late, to liberalize its trade and investment policies to enable the country to better function in the globalised economy, the Indian Government has reduced the import duty of food segments thus intensifying the battle.
2) Changing consumer trends - Trend of increased consumer spends on

consumer durables resulting in lower spending on FMCG products. In the past 2-3 years, the performance of the FMCG sector has been lackluster, despite the economy growing at a decent pace. Although, off late the situation has been improving, the dependence on monsoon is very high. 3) Sectoral woes - Rising prices of raw materials and fuels, and inturn, increasing packaging and manufacturing costs. But the companies may not be able to pass on the full burden of these onto the customers.
4) Some markets they are entering are already mature.

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Marketing Mix Of Nestle

Product Nestl is a famous group of companies. It is well known for its rendered services in food sector. Good nutrition is essential from the very beginning. That's why Nestl strives to provide the best for everyone. Nestl has recognized the special nutritional requirements which start from infants and covers the range to all age groups. They add specific nutrients to milk and encourage children to consume nutritious products with different flavors, colors and shapes. For small children, and families Nestl offers smaller sizes and portion able packs. Teens like lots of affordable enjoyment, with big portions and a succession of tastes and textures, particularly when they are buying the products themselves. They also favor ready-to-drink beverages, and here they can offer them a choice of refreshing teas or milk-based drinks Good tasting lighter meals and healthier milks formulated specifically for adults are examples of how Nestl caters to these needs. Nestl Clinical Nutrition has a range of good tasting products to help them do it. Nestl milk and dairy products are recognized throughout the world. Pricing Nestl has its own set of techniques for setting the prices of the product. It does not primarily focus on the competitors pricing strategies. It emphasizes on the market demand of the product. Nowadays market is going through tough recession, so they set their prices keeping in view the purchasing power of the customers.Moreover the prices of the products are also
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subjected to the type of consumer product. If the product is a daily use then it can have a minimum price to attract the customer towards your product. Thus the company cannot influence much on the prices. Price Structure General: The prices of Nestls products are within the customers buying power. Nestl also give discounts to their regular customers. Nestl has set prices in such a way that it offers the most quality products with acceptable prices. Its prices are very much comparable with its competitors. It also considers the fact that Indian market is not as much economically viable as the other foreign markets. So it keeps in mind all the below line factors while setting the prices of the products. Place Selection of place is also a very pivotal step in the success of the organization. The place must be right where the customer wants to be, it must be easy assessable and approachable to the customer. Nestl makes it sure that its product is available at every corner of the country regardless of rural or urban areas. Nestls main focus is to make the product within the access of every consumer so that the consumer should have no difficulty in getting the product. It also helps Nestl to compete with the competitors more effectively as by this it can make the product available to maximums number of target customers. Nestle is catering the market of Gujrat in very effective manner by providing its products in each and every corner which starts from the city and covers the rural areas specially its product.

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Middlemen and distribution channels In Nestl the distributions role within its marketing mix is to take the product to its target market.Today executives have come to realize their customers' satisfaction - or dissatisfaction - was linked to the performance of their supply chain. Bernard Teiling, assistant vice president of business process integration for Nestl S.A., which is based in Vevey, Switzerland, says supply chain management (SCM) is "both a source of competitive advantage and a lever for profit margin." Even though the complexity and the cost of SCM have continually increased over the last two decades, companies must be proficient in this process. "If you are not good at SCM, someone else will be," says Teiling.Nestl defines SCM as the two-way management of the flow of goods, services and information from suppliers to manufacturers, wholesalers, distributors, stores -- to the end user. SCM is especially critical for the food industry because of the ease of spoilage.Teiling feels a consumer products company remains profitable only if it has the right product at the right price in the right place at the right time. However, getting these stars to line up only happens when "the entire supply chain works as one." Seen that way, SCM becomes a branding issue. When Nestl places its logo on a product, the logo represents "a seal of quality." Protecting that quality makes Nestl responsible for its entire supply chain. Teiling says consumers don't care if a supplier or distributor had a problem. "If something goes wrong in the supply chain, it ruins things for the consumer," says the Nestl executive.Even though Nestl feels responsible for every link in the supply chain, it outsources many of those activities. "No one company can claim to do everything from A to Z in the food industry. Today that's impossible,"

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says Teiling. For example, Nestl does no farming. And the world's largest food company sells almost nothing directly to consumers.With the arrival of the Internet, companies today want to manage their supply chains through "an efficient interface with an eMarketplace." Many different exchanges are developing. Teiling describes them "as a tremendous opportunity for Nestl to work effectively to create new levels of performance." Nestl is using all the three levels of channel to ensure that its product should readily available to all its users throughout the country. Like it is using a zero level channel for distributing its product to its customers. It uses mostly the 3-level channel. For example in case of milk products, it uses 3level channel to penetrate into the as there is enough competition. On other hand, in case of mineral water such as Ava is uses zero level channel as it supplies the jumbo bottles of Ava directly to hotels. Promotion Nestl sets its promotional budget on annually basis. Nestl is well aware of the importance of the effectiveness of the promotional program. It designs its promotional program using all the available promotional tools. Advertisements Advertisement plays very important role in promoting the image and name of the company. Because you can give your massage and persuade the person (person may be Customer, client etc) to buy your product, therefore effective advertisement plays important role in the success of product.They give full-page coverage in newspaper and also made advertisement in the television. Also providing advertisements on online facility through creating Web Page of their Nestl, giving all required information about the products.

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They also advertise in weekly newspapers and magazinesThe budgets for various consumer products vary depending on the sale and demand of the product. Like on milk Nestl has 75% of sales out of the total sales. So similarly it spends more on promotional activities of milk. Promotional themes Nowadays a lot of companies are using certain promotional themes to promote their product better than their competitors. For example, in case of milk is uses the theme of Khalis creating a view that its milk is closest to pureness. Similarly is uses the promotional theme for Nestl Pure life for mineral waterIt also uses other below line activities to promote its product like by using the following techniques: Prizes Door to selling Free sampling

Positioning Nestle will position their product as a high quality product consumer focused. Messages like They knows your taste better than us, Nestle chocolates now at your door step; Add additional flavors to your life will help us portray our picture clearly and distinctly. Nestle will position their product against the competitors and gain competitive advantage through our efficient promotional methods, using innovations, and by reaching closer to our target market through the arrangement of events like BASANT, VALENTINE DAY and etc. In short consumers will view us as a

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product providing highly quality, in terms of taste, customer focused and, at the same time reasonably priced as compared to others. Market segmentation It is really a big market and it is always difficult to segment the big market. There are many uses for segmentation. Nestls strategies about their marketing are in the form of marketing segmentation. They have implemented their strategies by doing segmentation. Secondly they have made their distribution plans, network and methods very strong. Marketing channels and strategies about pricing and positioning are also in main focus. Needs Based Segmentation Milk Pack has made different sizes of tetra packs which can match the needs of buyers, ranging from 0.25 liters to 1.5 liter. Buyers can buy according to there need between these quantities. Product Segmentation Manufacturers diversify products within each needs base to appeal to buyers with different tastes and wealth. Customer Segmentation Customers are segmented based on their needs and product preferences. Segments grow or shrink over time as a product improve, become outdated or tastes changes. Global Segmentation Insurance firms and medical and legal practices also use product segmentation, and sometimes attempt to cover all the product space.

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In-store Display Segmentation Nestle have also segmented Milk Pack on the bases of In- Store display segmentation. In this type of segmentation the company have given different shelves in bib stores and also given the chillers to some of the agent having the Milk Pack sticker upon them but in Pakistan unfortunately the shop keepers are not using the shelves properly and they have put other brand products on those shelves. Drug stores, grocery stores, book stores, and other retail outlets use segmentation in order to keep like products close to each other within the store, making shopping convenient and cross selling more profitable.

Nestle New Launch

Nestle Kit Kat Chunky Kit Kat Chunky, a favorite around the world, is now in India. It comes in two delicious variants - Kit Kat Chunky Choko and Kit Kat Chunky Hazelnut made from cocoa beans from Africa and real hazelnut paste from Turkey. Its easy to open tear away packaging has been launched for the first time in the Indian market. Each bar has three portions for you to enjoy one delicious chunk at a time. Have a Break, Have a Kit Kat Chunky Nestle's Munch Pop Choc New Nestl Munch Pop Choc consists of little wafer cubes covered in delicious chocolate. The perfect combination of crunchy wafer and a delicious chocolate coating in bite sized cubes makes it a delightful treat and is targeted at the chocolate nibbling space. Munch Pop Choc offers great

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value-for-money. Priced at an affordable Rs 10, it is available in major towns cities including Delhi, Mumbai, Kolkata, Bangalore, Chennai and Hyderabad. Nestle Milkybar Choo Milkybar Choo- the tasty chewy MILKYBAR - now has power of Calcium! Outdoor champions, grab one now. Also available in yummy Strawberry and Choko flavours!! mm, mm, mmmmmmmmm...................

Nestle's Brand Management Strategies

"Nestle is a brand in its own right. For consumers, relevance of Nestle as a company comes first of all through contact with products that are branded Nestle. If we want to be perceived as the world's leading food company, we have to offer consumers an increasing amount of products that they can identify as Nestle's." In mid-1988, Nestle SA (Nestle), the world's largest consumer packaged foods company based in Switzerland, acquired Rowntree Mackintosh PLC (Rowntree), in the largest ever acquisition deal of a British company during that time. Rowntree was the world's fourth largest manufacturer of chocolates and confectionery products, with well-known brands like Kit Kat, After Eight, Smarties and Rolo. The deal attracted considerable attention all over the world since several bids to acquire Rowntree were rejected. Rowntree claimed that the bids were too low for its valuable, well-recognized brands.

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In the end, Rowntree was acquired by Nestle for 2.5 billion, two and a half times the pre-bid price and eight times the net asset value of the company. This acquisition made Nestle the largest chocolate manufacturer in the world. Analysts felt that Nestle had paid 2.5 billion because of Rowntree's brands, not its past financial performance. Industry observers wondered how Nestle would manage Rowntree's brands. Rowntree followed a "one product, one brand" policy. The brands were simply Kit Kat, After Eight, Smarties and Rolo, Rowntree was never mentioned. Moreover, Rowntree's brands were not strongly managed European brands. In fact, according to an analyst, Kit Kat was one of the worst cases of an over-localized brand of a company across Europe. Background Note In the mid-1860s, Henri Nestle (Henri), a merchant, chemist, and innovator experimented with various combinations of cow's milk, wheat flour and sugar. The resulting product was meant to be a source of infant nutrition for mothers who were unable to breast-feed their children. In 1867, his formula saved the life of a prematurely born infant. Later that year, production of the formula, named Farine Lactee Nestle, began in Vevey, and the Nestle Company was formed. Henri wanted to develop his own brands and decided to avoid the easier route of becoming a private label. He also wanted to make his company a global company. Within a few months of establishing his company, Henri began to sell his products in many European countries. In the initial years, Henri restructured the organization to facilitate research, improve product quality, and develop
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new products. In 1875, Daniel Peter, Henri's friend and neighbor, developed milk chocolate. He soon became the world's leading chocolate maker. Later, his company was acquired by Nestle. In 1905, Nestle merged with Anglo-Swiss Condensed Milk Company, a manufacturer of milk-based infant food. During World War I, there was a huge demand for dairy products and Nestle capitalized on this opportunity by executing military contracts of various countries involved in the war. In 1938, after eight years of research, Nestle discovered a soluble powder that revolutionized coffee drinking around the world. The product was launched under the brand name Nescafe and became an instant success. The end of the World War II marked the beginning of a new phase of growth for Nestle. The company added many new products. In its effort to expand its operations further, Nestle merged or acquired several companies. In 1947, Nestle expanded into culinary products by merging with Alimentana, a Swiss company that produced and sold Maggi soups, spices and other food products in many countries... Nestle's Branding Strategy The Nestle brand itself had played a key role in the company's globalization efforts. In 1996, about 40% of the total revenues were generated from products covered by the Nestle corporate brand. Nestle's logo was an important part of the company's corporate identity. The 'nest' was a graphic translation of Henri Nestle's name, which meant "little nest."...

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Internationalizing the "Kit Kat" Brand When Nestle acquired Rowntree's brands in 1988, the major challenge before the company was managing them. Rowntree had a "one product, one brand" policy. The brands Kit Kat, After Eights, Smarties and Rolo were marketed with no mention of Rowntree. Rowntree's brands were not strongly managed European brands. Before the 1980s, 'country managers' outside the UK in several European countries managed Rowntree's business. They were free to run their units provided business objectives were met. The orientation at Rowntree was short-term just to meet annual business objectives and country managers added nothing to the overall organization. Even though Kit Kat was a leading brand in UK, it was ignored outside the country. In the early 1980s, Rowntree established Rowntree Continental Europe, which handled business responsibilities outside the UK in Europe. However, this did not benefit Kit Kat, which was launched in Europe by Rowntree Continental Europe as a multi-local brand... Divesting Non-Strategic Brands The success of the Kit Kat brand inspired Nestle to think and act 'glocally' i.e. establishing global as well as local brand identity. Nestle had taken a similar approach to several other acquired sub-brands. Moreover, Nestle introduced the Kit Kat brand in several other countries across the globe. Nestle's brand management strategy included the divestment of non-strategic brands. In February 1999, Nestle negotiated the sale of its Findus brand of frozen food to EQT Scandinavia BV..

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Growing Market.. Falling Margin

Incorporated in 1959 as Food Specialities Ltd., Nestle India Ltd. (NIL) is promoted by Nestle Alimentana-Switzerland, which presently owns 51% equity stake in it. Nil is one of the top players in the processed food and beverages industry and the largest producer of instant coffee with a 49% market share. Its market dominance apart from instant coffee is spread over processed milk products (condensed milk, milk powders and dessert mix), infant foods and processed and culinary products (instant noodles, sauces, soups etc.).Established in 1860, its Swiss parent Nestle, S.A. with ownership and a clutch of topsellng global brands (Kit-Kat, Polo, Nescafe, Nido, Maggi, Perrier etc.) is one of the largest and most profitable players in the processed food and beverage industry. with sales at US$ 47.7 billion, it ranks 39th in the Fortune 500 list towering over its competitors like, Kelloggs, Conagra, Groupe-Danone, Kraft-General Foods and others. Increasing market dominance: NIL's portfolio comprising over 65 products, marketed through a representative-network in 3000 towns and 570000 outlets, is manufactured at five state-of-the-art manufacturing plants in India.While its Moga unit produces milk products, infant milkfood, weaning cereals, culinary products and beverages, the Choladi unit was set up to produce tea in 1967. The third plant at nanjangud was set up in 1989 to manufacture instant coffee and health beverages. Its other two plants are located at Samalkha in Haryana and Ponda in Goa. It is currently setting up another plant at Bicholim, Goa to manufacture culinary products. The gamut of operations of NIL could be broadly classified into four categories.

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Direct Competition At present there are two major players Nestle and Cadbury in the Indian Chocolate market. Campco initially tried to break into market but failed. Brief profile of the same has been entailed below: Cadburys India Ltd. Cadburys India Ltd, has been in India since 1948. Its brands: Dairy Milk, 5 Star, Gems and Chocolate Eclairs are the households names in India today. In all the segments i.e. moulded chocolates, count chocolates and panned chocolates, it is undoubtedly the market leader. Cadburys has its manufacturing units at Thane (Mumbai), Malanpur, Indori (near Pune), Mithuri and Kolapur. It has a strong distribution network with about 500 distributors in North India and more than 3 lac retail outlets being serviced all over India.In 1997, Cadbury planned to pump in Rs.80-crore to up production capacity at a couple of Cadburys factories. This cash is exactly double of whats been invested in 1996.The Company launched Perk, a wafer enrobed chocolate in 1995. This was reactionary to the launch of Kit Kat and has been able to counter competition. Cadburys Dairy Milk (CDM) - The Flagship brand CDM, the oldest of Cadburys brands was launched in 1956. In the early 90s, a rise in the prices of cocoa, increase in the excise duty and a fall in the demand inspired the idea of repositioning. Two years in the process after relaunch Cadburys Dairy Milks market share stood at 25 percent with sales rising by an average 40 percent per annum. Besides CDM Cadburys has a number of endorser brands such as FruitnNut, Nut Milk etc. Even though contribution of these brands to the

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companys bottom-line is very small, they are required in order to make a complete portfolio of offering.The Company developed a concentration strategy on CDM, Five Star, Cadbury Gems, Cadburys Eclairs, Perk and the latest of its offering Picnic (which has drawn a good response in the market).The Company has also identified sugar confectionery, as a growth sector. Its first offering Googly. Nestle India Ltd. Nestle India Ltd. has been in India for more than 35 years now. The worlds largest marketer of chocolates (became world number one when it acquired Rowntree Macintosh of the UK) - Nestle, made its foray in the Indian chocolate Industry in November 1990. It launched three products - the milk chocolate, the bitter chocolate and Crackle (a crunchy chocolate) - in the slabs category and Bar One in count lines. Cadburys was quick to react, and launched a whole host of products in succession: All Silk milk chocolate, Creamy Bar, and a new version of 5 Star.Nestle, in the beginning did not have its own manufacturing facility. It had an alliance with Campco to manufacture chocolates. Later, in 1995 a state-of-art manufacturing plant was set up at Ponda, Goa at a cost of Rs. 50 crores. This unit took care of the entire Kit Kat production. However, the production tie-up with Campco still continued.

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Data Collection
a) Sampling Design It is true that it is very difficult to do research with whole universe. As we know that it is not feasible to go with population survey because of the numerous Doctors and their scattered location. So for this purpose sample size has to be determined well in advanced and selection of the sample also has to be scientific so that it represents the whole universe. So far as this research is concerned, the sample size is 100. b) Instrument Taking into consideration research instrument selected by us is questionnaire because it gives more flexibility in terms of data and it has been asked to the responder personally and has an idea of getting an important unknown data that can be collected through their behavior. c) Mode Of Data Collection Data collection mode is personal visit and filling up of the questionnaire.

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Data Analysis
Que1. Do you eat chocolate?
No 26%

Yes 74%

Analysis & interpretation: Chocolate is a product which is like by the all age group of people. According to the survey 74% of people says yes they eat chocolate and 26% say no they are not eatingchocolate. 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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Que2. Which brand of chocolate do you prefer?

PREFERENCE OF DATA

Nestle 36% Cadbury Cadbury 64% Nestle

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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Que3. Which sub-brand you have purchased?

NESTLE

3%

3% 5% 33% KITKAT MUNCH MILKY BAR BAR ONE MILK CHOCOLATE

56%

CADBURY

2% 14% 17%

5% DAIRY MILK 62% 5 STAR PERK CELEBRATIONS TEMPTATIONS

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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Que4. Rank the sub-brands of chocolates according to your preference? (1 for most preferred) NESTLE
RANKING SUB BRAND

3% 3% 11% 33%

KIT KAT MUNCH MILKY BAR BAR ONE MILKY CHOCOLATE

50%

CADBURY
RANKING SUB BRAND

6%

3%

DAIRY MILK
33% 11% 47%

5 STAR PERK CELEBRATIONS TEMPTATIONS

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
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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. Que5. How much importance do you give to the following factors when you purchase a chocolate? (Tick in the desired column)
Taste/ Flavour Very Important Important Normal Least Important 88 9 2 1 Price 1 3 96 0 Packaging 12 6 4 78 Quantity 81 12 6 1

120 100
IMPORTANCE

80 60 40 20 0 Very Important Important Normal Least Important

Taste/ Flavour Price Packaging Quantity

Analysis & Interpretation: Whenever we are consuming any food product our main focus in on the quality and price in India there is more concentrating on the quality of

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product rather than other parameters of the product in this survey I found that the basic concentration of the consumer is on taste 88% says that they purchase if they like the taste of the product. 96% says if normal price would be there a taste is good than price dose not matter.78% of the consumer says that if they are getting best quality product at nominal price than the Packaging is least important.78% says that they are mainly seeing the quality of the product if the product is qualitative than they are ready to pay any price for that product. Que6. Which form of a chocolate do you like?
FORM OF CHOCOLATES
6% 18% 47% 29%
HARD CRUNCHY NUTTIES CHEW

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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Que7. What pack do you purchase?

SIZE OF PACK

10% 17% 73% SMALL BIG FAMILY PACK

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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Que8. Which promotional offers attract you most?

PROMOTIONAL OFFERS
4% 12% FREE GIFTS PRICE OFFER OTHERS 84%

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.

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Que9.Which of these factors affects your purchase?

ATTRACTIVE DISPLAY INGREDIENTS 5% 7%

BRAND AM BASSADORS 26%

ADVERTISEMENT BRAND AMBASSADORS INGREDIENTS ADVERTISEM ENT 62% ATTRACTIVE DISPLAY

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 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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Que10. Which media of advertisement influence your purchase?

HOARDING 6%

DISPLAY 24%

NEWSPAPER 4%

NEWSPAPER TELEVISION HOARDING

TELEVISION 66%

DISPLAY

Analysis & Interpretation: In todays competitive market advertisement is the main tool for selling the product because every single person is watching or reading the Advertisement. So it becomes easy to make people aware about the product. So companies are using advertisement media like 67% of the television adds, 7% of the Hoardings, 3% of the advertisement given on local as well as national newspapers, & 23% are using display ads.

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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 consumers price expectations and reactions. Advertising Research Under this I have concluded that whether the advertisement appeals the consumers or not.This also includes evaluating and selecting the proper media-mix and measuring advertising effectiveness. From 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 doesnt 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 Nestls 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 its not much costlier and is also easily available & affordable.

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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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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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