Introduction of Choclates (RM)

A STUDY OF CONSUMER PREFERENCE TOWARDS
CADBURY AND NESTLE CHOCOLATES
1. OBJECTIVE OF THE STUDY

1. To know about consumer behaviour towards chocolates.
2. To know customer satisfaction level associated with the product.
3. To know which brand customers prefer Cadbury or Nestle.
2. INTRODUCTION OF CHOCLATES
1
B.N.N COLLEGE, BHIWANDI

Chocolate was a New World discovery. The returning crew of Columbuss fourth voyage
in 1502 brought the first cocoa beans from the New World to Europe.
The Spanish eventually combined them with vanilla, and other flavourings, sugar, and milk to
arrive at a concoction that, as one writer noted at the time, people would die for; Aztec
Emperor Montezuma described it as a divine drink, which builds up resistance and fights
fatigue.
Breakfast Beverage
For the first couple of centuries, chocolate was served only as a beverage. A solid form
probably more like marzipan than the chocolate we knowwas touted as an instant breakfast in
18th-century France.
The stimulant effects of chocolate are due to its caffeine content and were thought to make it a
particularly useful food for soldiers standing watch during the night.
For the Troops
The chocolate bar, first marketed in about 1910, captured the publics imagination when it was
issued to the U.S. armed forces as a fighting food during World War II.
The Source of Chocolate

2

Chocolate is made from the beans found in the pods that grow on the cocoa tree, an
evergreen that originated in the river valleys of South America.
Native Central and South Americans valued cocoa so highly that they used cocoa beans
as currency. Today about three-fourths of the worlds chocolate is grown in West Africa and most
of the rest in Brazil.
Production
After cocoa beans are harvested, an initial phase of fermentation and drying is followed
by low-temperature roasting to bring out the flavour. Various manufacturing processes follow,
depending on whether the product is to be solid as chocolate or cocoa powder.
In 1828 the Van Houten family of Amsterdam, seeking to make a better drinking
chocolate, invented a screw press to remove most of the cocoa butter from the beans.
Not only did it make a better drink, but they also found that by mixing the extracted
cocoa butter back into ground cocoa beans, they could make a smoother, fatter solid paste that
would absorb sugar; this led to eating chocolate.
3

2.1 PRODUCTION OF CHOCLATES

Chocolate is a key ingredient in many foods such as milk shakes, candy bars, cookies and
cereals. It is ranked as one of the most favourite flavours in North America and Europe (Swift,
1998). Despite its popularity, most people do not know the unique origins of this popular treat.
Chocolate is a product that requires complex procedures to produce. The process involves
harvesting coca, refining coca to cocoa beans, and shipping the cocoa beans to the manufacturing
factory for cleaning, coaching and grinding. These cocoa beans will then be imported or exported
to other countries and be transformed into different type of chocolate products (Allen, 1994).
Harvesting Cocoa & Cocoa processing

Chocolate production starts with harvesting coca in a forest. Cocoa comes from tropical
evergreen Cocoa trees, such as Theobroma Cocoa, which grow in the wet lowland tropics of
Central and South America, West Africa and Southeast Asia (within 20 C of the equator)
(Walter,1981) . Cocoa needs to be harvested manually in the forest. The seed pods of coca will
first be collected; the beans will be selected and placed in piles. These cocoa beans will then be
ready to be shipped to the manufacturer for mass production.
Step 1: Plucking and opening the Pods
Cocoa beans grow in pods that sprout off of the trunk and branches of cocoa trees. The pods are
about the size of a football. The pods start out green and turn orange when they're ripe. When the
pods are ripe, harvesters travel through the cocoa orchards with machetes and hack the pods
gently off of the trees.
4

Machines could damage the tree or the clusters of flowers and pods that grow from the trunk, so
workers must be harvest the pods by hand, using short, hooked blades mounted on long poles to
reach the highest fruit.
After the cocoa pods are collected into baskets, the pods are taken to a processing house. Here
they are split open and the cocoa beans are removed. Pods can contain upwards of 50 cocoa
beans each. Fresh cocoa beans are not brown at all; they do not taste at all like the sweet
chocolate they will eventually produce.
Step 2: Fermenting the cocoa seeds
Now the beans undergo the fermentation processing. They are either placed in large, shallow,
heated trays or covered with large banana leaves. If the climate is right, they may be simply
heated by the sun. Workers come along periodically and stir them up so that all of the beans
come out equally fermented. During fermentation is when the beans turn brown. This process
may take five or eight days.
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The fermentation of Cocoa beans
Step 3: Drying the cocoa seeds

After fermentation, the cocoa seeds must be dried before they can be scooped into sacks and
shipped to chocolate manufacturers. Farmers simply spread the fermented seeds on trays and
leave them in the sun to dry. The drying process usually takes about a week and results in seeds
that are about half of their original weight.
The dried and roasted Cocoa beans
2.2 MANUFACTURING CHOCOLATE

Once the cocoa beans have reached the machinery of chocolate factories, they are ready
to be refined into chocolate. Generally, manufacturing processes differ slightly due to the
different species of cocoa trees, but most factories use similar machines to break down the cocoa
6

beans into cocoa butter and chocolate (International Cocoa Organization, 1998). Firstly,
fermented and dried cocoa beans will be refined to a roasted nib by winnowing and roasting.
Then, they will be heated and will melt into chocolate liquor. Lastly, manufacturers blend
chocolate liquor with sugar and milk to add flavour. After the blending process, the liquid
chocolate will be stored or delivered to the molding factory in tanks and will be poured into
moulds for sale. Finally, wrapping and packaging machines will pack the chocolates and then
they will be ready to transport.
Step #1: Roasting and Winnowing the Cocoa
The first thing that chocolate manufacturers do with cocoa beans is roast them. This develops the
colour and flavour of the beans into what our modern palates expect from fine chocolate. The
outer shell of the beans is removed, and the inner cocoa bean meat is broken into small pieces
called "cocoa nibs."
The roasting process makes the shells of the cocoa brittle, and cocoa nibs pass through a
series of sieves, which strain and sort the nibs according to size in a process called "winnowing".
Step 2: Grinding the Cocoa Nibs

Grinding is the process by which cocoa nibs are ground into " cocoa liquor", which is
also known as unsweetened chocolate or cocoa mass. The grinding process generates heat and
the dry granular consistency of the cocoa nib is then turned into a liquid as the high amount of fat
contained in the nib melts. The cocoa liquor is mixed with cocoa butter and sugar. In the case of
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milk chocolate, fresh, sweetened condensed or roller-dry low-heat powdered whole milk is
added, depending on the individual manufacturer's formula and manufacturing methods.
Step #3: Blending Cocoa liquor and molding Chocolate

After the mixing process, the blend is further refined to bring the particle size of the added milk
and sugar down to the desired fineness. The Cocoa powder or 'mass' is blended back with the
butter and liquor in varying quantities to make different types of chocolate or couverture. The
basic blends with ingredients roughly in order of highest quantity first are as follows:
Milk Chocolate - sugar, milk or milk powder, cocoa powder, cocoa liquor, cocoa butter, Lethicin
and Vanilla.
White Chocolate- sugar, milk or milk powder, cocoa liquor, cocoa butter, Lethicin and Vanilla.
Plain Dark Chocolate - cocoa powder, cocoa liquor, cocoa butter, sugar, Lethicin and Vanilla.
After blending is complete, molding is the final procedure for chocolate processing. This
step allows cocoa liquor to cool and harden into different shapes depending on the mold. Finally
the chocolate is packaged and distributed around the world.
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3.THE CHOCOLATE CONSUMPTION IN INDIA

Chocolate consumption in India is extremely low. Per capita consumption is around
160gms in the urban areas, compared to 8-10kg in the developed countries. In rural areas, it is
9

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 been attempting to do this by
value for money offerings, which are affordable to the masses.
3.1 INDUSTRY SCENARIO

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 500crore by the year 2008. Till the eighties, the chocolate market was
10

small and the product category itself was fuzzy. In the eighties, Cadburys - 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,
Cadburys 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 leaders grip. In fact, Cadburys had become a brand virtually generic to chocolates. Then
chocolates were used to reward and reinforce positive behaviour and hence were categorized 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 Cadburys (re-launch of Cadburys 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.
4.NESTLE INDIA
Nestl India is a subsidiary of Nestl S.A. of Switzerland. With eight factories and a large
number of co-packers, Nestl India is a vibrant Company that provides consumers in India with
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products of global standards and is committed to long-term sustainable growth and shareholder
satisfaction.
The Company insists on honesty, integrity and fairness in all aspects of its business and
expects the same in its relationships. This has earned it the trust and respect of every strata of
society that it comes in contact with and is acknowledged amongst India's 'Most Respected
Companies' and amongst the 'Top Wealth Creators of India'.
Nestl's relationship with India dates back to 1912, when it began trading as The Nestl
Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished
products in the Indian market.
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After India's independence in 1947, the economic policies of the Indian Government
emphasized the need for local production. Nestl responded to India's aspirations by forming a
company in India and set up its first factory in 1961 at Moga, Punjab, where the Government
wanted Nestl to develop the milk economy. Progress in Moga required the introduction of
Nestl's Agricultural Services to educate, advise and help the farmer in a variety of aspects. From
increasing the milk yield of their cows through improved dairy farming methods, to irrigation,
scientific crop management practices and helping with the procurement of bank loans.
Nestl set up milk collection centers that would not only ensure prompt collection and pay fair
prices, but also instill amongst the community, a confidence in the dairy business. Progress
involved the creation of prosperity on an on-going and sustainable basis that has resulted in not
just the transformation of Moga into a prosperous and vibrant milk district today, but a thriving
hub of industrial activity, as well.
Nestl has been a partner in India's growth for over nine decades now and has built a very
special relationship of trust and commitment with the people of India. The Company's activities
in India have facilitated direct and indirect employment and provides livelihood to about one
million people including farmers, suppliers of packaging materials, services and other goods.
The Company continuously focuses its efforts to better understand the changing lifestyles of
India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness
through its product offerings. The culture of innovation and renovation within the Company and
access to the Nestl Group's proprietary technology/Brands expertise and the extensive
centralized Research and Development facilities gives it a distinct advantage in these efforts. It
helps the Company to create value that can be sustained over the long term by offering
consumers a wide variety of high quality, safe food products at affordable prices.
Nestl India manufactures products of truly international quality under internationally famous
brand names such as NESCAF, MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAID
and NESTEA and in recent years the Company has also introduced products of daily
consumption and use such as NESTL Milk, NESTL SLIM Milk, NESTL Dahi and NESTL
Jeera Raita.
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Nestl India is a responsible organisation and facilitates initiatives that help to improve
the quality of life in the communities where it operates.
Nestls Presence in India
After more than a century-old association with the country, today, Nestl India has
presence across India with8manufacturing facilities and 4 branch offices.
Nestl India set up its first manufacturing facility at Moga (Punjab) in 1961 followed by its
manufacturing facilities at Choladi (Tamil Nadu), in 1967; Nanjangud (Karnataka), in 1989;
Samalkha (Haryana), in 1993; Ponda and Bicholim (Goa), in 1995 and 1997, respectively; and
Pantnagar (Uttarakhand), in 2006. In 2012, Nestle India set up its 8th manufacturing facility at
Tahliwal (Himachal Pradesh).
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The 4 Branch Offices located at Delhi, Mumbai, Chennai and Kolkata help facilitate the
sales and marketing activities. The Nestl Indias Head Office is located in Gurgaon, Haryana.
4.1 PRODUCTS OF NESTLE

Milk Products and Nutrition
NESTL a+
NESTL SLIM Milk and Dahi
NESTL ACTIPLUS Probiotic Dahi
NESTL Bhuna Jeera Raita
NESTL Real Fruit Yoghurts
NESTL MILKMAID
NESTL MILKMAID Creations
NESTL NESLAC
Nutrition
Baby and me
NUTREN Junior
BEVERAGES
NESCAF Ice Caf

NESCAF CLASSIC
NESCAF CAPPUCCINO
NESCAF SUNRISE Premium
NESCAF SUNRISE
NESCAF SUNRISE Strong
NESCAF GOLD
NESTEA ICED TEA
PREPARED DISHES AND COOK ING AIDS
MAGGI 2-MINUTE Noodles

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MAGGI Vegetable Atta Noodles

MAGGI Dal Atta Noodles
MAGGI Rice Noodles
ManiaMAGGI Sauces
MAGGI Pizza
MazzaMAGGI Healthy Soups
MAGGI Healthy Soup- Sanjeevni
MAGGI MAGIC Cube
Chocolates and Confectionery
NESTL ALPINO
NESTL DARK CHOCOLATE
NESTL KITKAT
NESTL BAR ONE
NESTL MUNCH
NESTL MUNCH ROLLZ
NESTL Milk Chocolate
NESTL MILKYBAR
NESTL MILKYBAR CHOO
NESTL MILKYBAR Crispy Wafer
NESTLE Eclairs
POLO HOLE NEW FASHION
POLO
NESTL ALPINO
Nestl ALPINO is an international brand in Nestls

Confectionary portfolio since the 1950s. It now comes to
India as Nestls first premium brand.
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NESTL KITKAT
NESTL KIT KAT is crisp wafer fingers covered with chocolayer. NESTL KIT
KAT has a unique finger format with a breaking' ritual attached to it.
NESTL KIT KAT is one of the most successful brands in the world and every year
over 12 billion NESTL KIT KAT fingers are consumed around the globe.
NESTLE clairs
NESTL Eclairs with an irresistible outer layer of

caramel and a yummy milky filling, you will not
find a better temptation
Polo
POLO more popularly known as The mint with the Hole is Nestles iconic
refreshment brand. It appeals to urban youth with its iconic imagery & clever communication.
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5. INTRODUCTION OF CADBURY COMPANY

Cadbury is a multinational company and the Cadbury dairy milk is a brand of chocolate
which is made by Cadbury. Cadbury made different types of chocolates and other products which
are sold in several countries around the world. It first sold its products in United States in 1905.
Business in India
Cadbury India Ltd. is a part of Mondelez International. Cadbury India operates in five
categories Chocolate confectionery, Beverages, Biscuits, Gum and Candy. In the Chocolate
Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some
of the key brands are Cadbury Dairy Milk, Bourn vita, 5 Star, Perk, Bournville, Celebrations,
Gems, Halls, clairs, Bubbaloo, Tang and Oreo. The core purpose of company is to make today
delicious" captures the spirit of what they are trying to achieve as a business.
In India, Cadbury began its operations in 1948 by importing chocolates. After over 60
years of existence, it today has six company-owned manufacturing facilities at Thane, Induri
(Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) Hyderabad and 4
sales offices (New Delhi, Mumbai, Kolkata and Chennai). The corporate office is in Mumbai.
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Cadbury India enjoys a value market share of over 70 percent in the chocolate category and the
brand Cadbury Dairy Milk (CDM) 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 the main product is Bournvita - the leading Malted Food Drink
(MFD) in the country. Similarly in the medicated candy category Halls is the undisputed leader.
Company recently entered the biscuits category with the launch of the Worlds No 1 biscuit
brand Oreo.
Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India.
For over two decades, they have worked with the Kerala Agricultural University to undertake
cocoa research and released clones, hybrids that improve the cocoa yield. Their Cocoa team
visits farmers and advises them on the cultivation aspects from planting to harvesting. They also
conduct farmer meetings & seminars to educate them on Cocoa cultivation aspects. The efforts
have increased cocoa productivity and touched the lives of thousands of farmers. Hardly
surprising then that the Cocoa tree is called the Cadbury tree!
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5.1 HISTORY OF CADBURY

Cadbury, the global leader in the chocolate confectionery market, began in 1824 when a
young Quaker named John Cadbury opened up a shop in Birmingham. John sold coffee, tea,
drinking chocolate and cocoa at his shop. Believing that alcohol was a main cause of poverty,
John hoped his products might serve as an alternative. He also sold hops and mustard. Like many
Quakers John had high quality standards for all of his products.
At that time in England, Quakers were prohibited from attending university, since it was
affiliated with the established church, and their pacifist beliefs kept them from joining the
military. With few opportunities available, Quakers often went into business-related fields and/or
devoted their time to missions of social reform.
By 1842 John was selling 11 kinds of cocoa and 16 kinds of drinking chocolate. Soon
Johns brother Benjamin joined the company to form Cadbury Brothers of Birmingham. The
Cadbury brothers opened an office in London and received a Royal Warrant (one of many) as
manufacturers of chocolate and cocoa to Queen Victoria in 1854. Six years later the brothers
dissolved their partnership because of Johns failing health and the death of his wife. They left
the business to John's sons George and Richard.
John devoted the rest of his life to social work
and died in 1889.
George and Richard continued to expand
the product line, and by 1864, they were pulling a
profit. Cadburys Cocoa Essence, which was
advertised as "absolutely pure and therefore
best," was an all-natural product made with pure
cocoa butter and no starchy ingredients. Cocoa Packing room at Cadbury's Bournville
Essence was the beginning of chocolate as we factory
know it today. The brothers soon moved their manufacturing operations to a larger facility four
miles south of Birmingham. The factory and area became known as Bournville.
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With Cadburys continued success in chocolate, George and Richard stopped selling tea
in 1873. Master confectioner Frederic Kinchelman was appointed to share his recipe and
production secrets with Cadbury workers. This resulted in Cadbury producing chocolate covered
nougats, bonbons delices, pistache, caramels, avelines and more. Cadbury manufactured its first
milk chocolate in 1897. Two years later the Bournville factory employed 2,600 people and
Cadbury was incorporated as a limited company.
During World War I, more than 2,000 of Cadburys male employees joined the Armed
Forces. Cadbury supported the war effort, sending warm clothing, books and chocolate to the
soldiers. Cadbury supplemented the government allowances to the dependants of their workers.
When the workers returned, they were able to return to work, take educational courses, and
injured or ill employees were looked after in convalescent homes. During this period trade
overseas increased, and Cadbury opened its first overseas factory near Hobart, Tasmania. The
next year Cadbury merged with JS Fry & Sons, a past market leader in chocolate.
Cadbury supported the war effort during World War II by converting parts of its factory
into workrooms to manufacture equipment like milling machines for rifle factories and parts like
pilot seats for defiant fighter planes. Workers plowed football fields to grow crops, and the
Cadbury St. Johns Ambulance unit helped people during air raids. Chocolate was considered
essential for the Armed Forces and civilians. Rationing finally ended in 1949.
In 1969 Cadbury merged with Schweppes to form Cadbury Schweppes. Schweppes was a
well-known British brand that manufactured carbonated mineral water and soft drinks. The
merged companies would go on to acquire Sunkist, Canada Dry, Typhoo Tea and more.
Schweppes Beverages was created, and the manufacture of Cadbury confectionery brands was
licensed to Hershey.
Today Cadbury Schweppes is the largest confectionery company in the world, employing
more than 70,000 employees. In 2006 the company had over $15 billion in overall sales. In
March of 2007, Cadbury Scheweppes announced that it intends to separate its confectionery and
beverage businesses. With almost 200 years in the business, Cadbury Schweppes will continue to
prosper in the coming decades.
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5.2 PRODUCT VARIETIES OF CADBURY

Chocolate
Cadbury dairy milk

Cadbury celebration
Temptation
Bourneville
5 star
Perk
Gems
Beverages
Bourn vita
Tang
Biscuit
Oreo
Candy
clairs
Halls
Gum
Bubbaloo
Cadbury dairy milk
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Cadbury Dairy Milk encapsulates an enormous breath of emotions, from shared values
such as family togetherness, to the personal values of individual enjoyment. It stands for
goodness. A moment of pure magic!
Cadbury Dairy Milk (CDM) entered the Indian market in 1948, and since then for
consumers
across
India,
the
word
Cadbury
has
become
synonymous
with
chocolate. CDM remains at the top of the Indian chocolate market not only because of its most
delicious, best tasting chocolate but also because of its memorable communication.
clairs
Cadbury clairs has been present in India since 1971 and has remained a favourite with
adults and kids alike. The credit for making eclairs goes to an English confectionary firm which
devised this delicious formula in the 1960s. This tasty wonder with indulgent chocolate wrapped
in soft, chewy caramel came to Cadbury in 1971, when Cadbury took over this confectionary
firm. In 1994 the brand took on the purple and gold packaging which has been its trademark
since then.
Cadbury dairy silk
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Cadbury Dairy Milk has captured the heart of Indian consumers for over six decades; but
there was room for a more premium entrant in the category. And enter CDM Silk.
Most CDM lovers thought that nothing could taste better, but CDM Silk came as a welcome
surprise! It is creamier, smoother, and tastier. Its dome shaped cubes pack more chocolate and
hence provide a superior eat experience.
Launched in January 2010, with a tantalizing taste that tempts the taste buds, CDM
Silk delivered an exquisite chocolate eating experience in the Indian market.
Cadbury celebration
A festival is not a festival unless it is celebrated, and a celebration is not a celebration

unless you open a box of Cadbury Celebrations!
If there was one challenge that Cadbury faced, then it was in converting the
quintessential Mithai loving Indian into a chocolate fan. With Celebrations, we not only
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succeeded in positioning chocolates as the modern variant over the traditional Mithai, but also
managed to connect to the average Indian for whom festivals hold a special significance.
5.3 ADVERTISING MEDIA

Television, the print media and posters have been the main media of communication for
Cadburys advertisements. However, with their understanding of the peculiarities of the Indian
market, CIL has also explored many new ways of getting their message across to the consumers.
Sheet Metal Dispensers: This purple salesperson for Cadburys is found in almost every
shop stocking their chocolates. Since it is placed on the cash counter, its design offers
visibility, ease of vending, and protection from the elements. It is also placed in the most
appropriate position to cater to the impulse buyers. This first from CIL has become so
popular that is now the standard design for all chocolate manufacturers.
Visicoolers: Visibility for chocolates drops in the summer, as they disappear into the
refrigerator. In high throughput outlets, the visicooler serves the need for cooling while
still maintaining the visibility of the product.
Jars: These are provided to small outlets, where they are prominently displayed.
Vending machines: These high visibility machines are provided at busy locations.
Presence in Amusement Parks: Cadburys also maintains a presence in many amusement
parks across the country, strengthening the association of its chocolates with fun
occasions.
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5.4 MESSAGE EXECUTION

In the early days, the brand had a huge fan following among kids. In order to build stronger
appeal among older age groups, the brand re-positioned itself through the classic Real Taste of
Life campaign in 1994. The campaign positioned Cadbury Dairy Milk as the chocolate that
awakened the little child in every grown up and very soon, both teenagers and adults, were
hooked on to this bar of pure magic.
With the launch of the Rs. 5 pack in 1998, CDM became more affordable and hence more
accessible for the masses. The ensuing positioning of Khaane Waalon ko khaane ka Bahana
Chhayie made consumption into a joyful, social occasion.
In 2004, the `Kuch Meetha Ho Jaaye campaign was launched, seeking to
increase CDM consumption by making it synonymous with traditional sweets (Mithai). With
Amitabh Bachchan as the face and voice of the brand, the campaign went on to become a huge
success. People could relate to the commercials that were aired to promote Cadbury Dairy Milk.
How many can forget the `Pappu Pass Ho Gaya commercial? The country cheered on as Pappu
fell in love in the Pappu Love Test commercial. Then came`Miss Palampur and the country
celebrated the beauty pageant with a difference. In 2009, they aired another commercial under
the `Kuch Meetha Ho Jaaye platform, called the `Pay Day commercial.
In the year 2010, the `Shubh Aarambh campaign was launched, drawing lines from the
traditional Indian custom of having something sweet before embarking on something new.
With `Shubh Aarambh, Cadbury took the Dairy Milk journey a step further into the hearts of its
million lovers.
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With the current campaign Khaane Ke Baad Meethe Mein Kuch Meetha Ho Jaaye, the
aim is to introduce the thought of having a CDM as a post dinner meetha (dessert).
5.5 DISTRIBUTION SYSTEM ADOPTED BY CADBURY

Why does the company need distribution equity more in India? With technology and
competitive pressure slash in it is becoming increasing difficult for marketers to retain a unique
product differentiation for long 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. And the 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 to 2100
distributors and 4,50,000 retailers. Beside use of TI to improve logistics, Cadbury is also
attempting to improve the distribution quality. To address the issue of product stability, it has
installed visible colors at several outlets. This helps in maintaining consumption in summer
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when sales usually drops due to the fact that the heat affects 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.
5.6 CONSUMER PREFERENCE

All marketing starts with the consumer. So consumer is a very important person to a
marketer. Consumer decides what to purchase, for whom to purchase, why to purchase, from
where to purchase, and how much to purchase. In order to become a successful marketer, he
must know the liking or disliking of the customers. He must also know the time and the quantity
of goods and services, a consumer may purchase, so that he may store the goods or provide the
services according to the likings of the consumers. Gone are the days when the concept of
market was let the buyers beware or when the market was mainly the sellers market. Now the
whole concept of consumers sovereignty prevails. The manufacturers produce and the sellers
sell whatever the consumer likes. In this sense, consumer is the supreme in the market. As
consumers, we play a very vital role in the health of the economy local, national or international.
The decision we make concerning our consumption behavior affect the demand for the basic raw
materials, for the transportation, for the banking, for the production; they effect the employment
of workers and deployment of resources and success of some industries and failures of others.
Thus marketer must understand this.
Preference (or taste") is a concept, used in the social sciences, particularly
economics. It assumes a real or imagined "choice" between alternatives and the possibility of
rank ordering of these alternatives, based on happiness, satisfaction, gratification, enjoyment,
utility they provide. More generally, it can be seen as a source of motivation. In cognitive
28

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 consumer preference
6. RESEARCH METHODOLOGY
The system of collecting data for research projects is known as research methodology.
The data may be collected for either theoretical or practical research for example management
research may be strategically conceptualized along with operational planning methods and
change management
Some important factors in research methodology include validity of research data, Ethics
and the reliability of measures most of your work is finished by the time you finish the analysis
of your data.
Formulating of research questions along with sampling weather probable or non probable
is followed by measurement that includes surveys and scaling. This is followed by research
design, which may be either experimental or quasi-experimental. The last two stages are data
analysis and finally writing the research paper, which is organized carefully into graphs and
tables so that only important relevant data is shown.
Research can be classified by purpose or by method. If we categorize it by purpose, it
would fall into two major categories: Basic Research and Applied Research, while in case of
method, it would be deductive research and inductive research.
1. BASIC RESEARCH
29

Also called Pure or fundamental Research, it is undertaken for increase in knowledge.

There is no direct benefit as it is a research for the sake of research. It is conducted to satisfy any
curiosity such as: (a) what makes things happen, (b) why society changes and (c) why social
relations are in a certain way. In fact, it is the source of most new theories, principles and ideas.
Basic research rarely helps anyone directly. It only stimulates new ways of thinking. The main
motivation is to expand man's knowledge. There is absolutely no commercial value to the
discoveries resulting from such research.
1. APPLIED RESEARCH
It is use of basic research or past theories, knowledge and methods for solving an existing
problem. It deals with practical problems. It is opposed to pure research which is not problemoriented but for the increase in knowledge which may or may not be used in future.
In the present world situation, more emphasis is being given to applied research to solve
problems arising out of overpopulation and scarcity of natural resources.
Applied research should not be treated the same as Research & Development(R&D)
which is involved in developing products demanded by the existing clients. Applied Research, on
the other hand, focuses on uncovering what needs are not being met and use that information in
designing products or services that would create their own demand.
DATACOLLECTION
Facts, information systematically collected and formally presented for the purpose of
drawing inferences may be called data. Statistical information collected, compiled and preserved
for the purpose of establishing appropriate relationship between variables may also be included
in the data, whether statistically processed or not, play a vital role in the research and analysis
of various problems in all types of area of investigations. This is the rational of data collection in
research.
SOURCESOF DATACOLLECTION
30

1. PRIMARYSOURCE
Primary source means first hand sources or original source at the hand of the researcher
that is not collected previously. For example, the various replies by the teacher from the students
as regards their assessment of teaching method constitute primary source of data. Primary data is
collected through principles sources of observation, surveys. Using primary sources,
researcher can collect precisely the information he wants. Primary data consist of Qualitative
Data and Quantitative Data.
2. SECONDARY SOURCES
Secondary data refers to information generally collected by persons other than researcher
for other purpose and not for the purpose involved in the given research project at work. As an
example, the annual accounts of a company form a primary data for that company for purpose of
presenting the companys financial status and performance. But to a researcher, it may form a
secondary data as it is used, perhaps in part, for some other purpose and is independent
of research investigation. The sources of secondary data consist of reports such as census reports,
annual reports and accounts of company reports of various government departments.
Reserve bank of India various reports, national sample survey report, UNO, UNICEF, WHOM,
ILO, or World Bank various reports compiled. In fact, books, journals, diaries, manuscripts,
letter, etc. also form secondary source of data. The main characteristics associated with such a
data are that the data is readily available. Also, the researcher does not have any control over this
collection. The forms and contents are shaped by those other than a particular researcher.
SURVEY DESIGN:
The study is a cross sectional study because the data were collected at a single point of
time. For the purpose of present study a related sample of population was selected on the basis of
convenience.
SAMPLE SIZE AND DESIGN:
31

A sample of 20 people was taken on the basis of convenience. The information is collected from
the different people like students, employees, housewives, etc.
RESEARCH PERIOD:
Research work is only carried for 1 to 2 weeks.
RESEARCH INSTRUMENT:
This work is carried out through self-administered questionnaires. The questions included were
open ended and offered choices.
7. ANALYSIS
1.
Do you eat chocolates?
Chart Title
No; 5%
Yes; 95%
Chocolate is the product which is like by all the age groups. The analyais shows that 90%
of people prefer chocolates while 10% do not prefer chocolate. The reason behind this may be
that they do not prefer chocolate on weekly basis or monthly basis.
32

2. Which brand of chocolates do you consume?
Chart Title
Nestle; 30%
Cadbury; 70%
There are many brands available in the market. But the market le a d e r s in India are
basically two brands Cadbury & Nestle. According to survey 70% of the market is c a p tured
by the Cadbury and only 30% of the market is covered by 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 competitor.
33

3. Which chocolate you prefer of Nestle and Cadbury?

Nestle
Milkybar; 5%
Eclairs; 10%
Bar one; 5%
Munch; 45%
Kitkat; 35%
Cadbury
34

Temptation; 10%
Celebration; 20%
Dairymilk; 45%
5 Star; 15%
Silk; 10%
In this survey five products of nestle are analyzed viz munch, kitkat, bar one, clairs and
milky bar and their consumption are kitkat 35%, munch 45%, clairs 10%, bar one 5% and milky
bar 5%.
On the other hand five products of Cadbury were also analyzed viz dairy milk, silk, 5star,
celebration and temptation. The consumption of dairy milk is 45%, 5star 15%, celebration 20%,
silk 10% and temptation 10%.
4. Which form of chocolate do you like?
35

Chart Title
Chew; 5%
Crunchy; 25%
Hard ; 50%
Nutties; 20%
Every person have their own taste and preferences towards the eatable product. In chocolates
there are four varieties available in the market among this 50% consumer like hard chocolate,
25% like crunchy, 20% like nutties and 5% of consumers like chew.
5. Which pack do you purchase?
Chart Title
Family; 15%
Big; 20%
Small; 65%
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 groups and they more prefer the small packaging because
of there availability in market is good and most important thing is its very much affordable.
36

According to survey 65% consumer prefer small packs, 20% people prefer big packs and 15%
people prefer family packs.
6. Which promotion offer attracts you more?
Chart Title
Others; 5%
Free Gifts; 35%
Price Offers; 60%
To sell out products there are many promotion activities conducted out by a company to
face the competition. The company provides many offer like free gifts, price offs and other
techniques.
8.CONCLUSION
37

The study shows that Cadbury is preferred more than Nestle. People prefer to buy
Cadbury products than that of Nestle. Cadbury dairy milk is preferred more due to its quality,
image, price and hard form. Cadbury is market leader in chocolates.
Cadbury has always been coming up with new innovative products and advertisements.
In the field of concept selling by using the ideas and by inventions /imagination/ psychological
and cultural fields, Cadbury have mixed up various human sentiments and created an altogether
mixed market where they are able to promote and in cash benefits for themselves as well for
building different human/socio relations. This is where Nestle lacks moreover lack of innovation
in the product.
9.ANNEXURE
38

Questionnaire
1.
Do you eat chocolates?

Yes
No
2. Which brand of chocolates do you consume?

Cadbury
Nestle
3. Which chocolate you prefer of nestle and Cadbury?
Kitkat
Dairymilk
clairs
5 star
Bar One
Silk
Munch
Celebration
Milkybar
Temptation
4. Which form of chocolate do you like?

Hard
Crunchy
Nutties
Chew
5. Which pack do you purchase?

Small
Big
Family pack
39

6. Which promotion offer attracts you more?

Free gifts
Price offer
Others
BIBLIOGRAPHY
Marketing Management Millennium Edition by Philip Kotler
Marketing Strategies & Plans by Micchael Vaz, Madhu Nair & Vijetha Shetty
40

WEBLIOGRAPHY
www.readersdigest.ca
www.scribd.com
www.nestle.in
www.cadburyindia.com
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A STUDY OF CONSUMER PREFERENCE TOWARDS

CADBURY AND NESTLE CHOCOLATES

1. OBJECTIVE OF THE STUDY

A STUDY OF CONSUMER PREFERENCE TOWARDS

The Source of Chocolate

A STUDY OF CONSUMER PREFERENCE TOWARDS

A STUDY OF CONSUMER PREFERENCE TOWARDS

2.1 PRODUCTION OF CHOCLATES

Harvesting Cocoa & Cocoa processing

A STUDY OF CONSUMER PREFERENCE TOWARDS

A STUDY OF CONSUMER PREFERENCE TOWARDS

The fermentation of Cocoa beans

Step 3: Drying the cocoa seeds

The dried and roasted Cocoa beans

2.2 MANUFACTURING CHOCOLATE

A STUDY OF CONSUMER PREFERENCE TOWARDS

Step 2: Grinding the Cocoa Nibs

A STUDY OF CONSUMER PREFERENCE TOWARDS

Step #3: Blending Cocoa liquor and molding Chocolate

A STUDY OF CONSUMER PREFERENCE TOWARDS

3.THE CHOCOLATE CONSUMPTION IN INDIA

A STUDY OF CONSUMER PREFERENCE TOWARDS

3.1 INDUSTRY SCENARIO

A STUDY OF CONSUMER PREFERENCE TOWARDS

A STUDY OF CONSUMER PREFERENCE TOWARDS

A STUDY OF CONSUMER PREFERENCE TOWARDS

A STUDY OF CONSUMER PREFERENCE TOWARDS

Nestls Presence in India

A STUDY OF CONSUMER PREFERENCE TOWARDS

4.1 PRODUCTS OF NESTLE

NESCAF Ice Caf

PREPARED DISHES AND COOK ING AIDS

MAGGI 2-MINUTE Noodles

B.N.N COLLEGE, BHIWANDI

A STUDY OF CONSUMER PREFERENCE TOWARDS

MAGGI Vegetable Atta Noodles

Chocolates and Confectionery

Nestl ALPINO is an international brand in Nestls

A STUDY OF CONSUMER PREFERENCE TOWARDS

NESTL Eclairs with an irresistible outer layer of

A STUDY OF CONSUMER PREFERENCE TOWARDS

5. INTRODUCTION OF CADBURY COMPANY

A STUDY OF CONSUMER PREFERENCE TOWARDS

A STUDY OF CONSUMER PREFERENCE TOWARDS

5.1 HISTORY OF CADBURY

A STUDY OF CONSUMER PREFERENCE TOWARDS

A STUDY OF CONSUMER PREFERENCE TOWARDS

5.2 PRODUCT VARIETIES OF CADBURY

Cadbury dairy milk

Cadbury dairy milk

A STUDY OF CONSUMER PREFERENCE TOWARDS

Cadbury dairy silk

A STUDY OF CONSUMER PREFERENCE TOWARDS

A festival is not a festival unless it is celebrated, and a celebration is not a celebration

A STUDY OF CONSUMER PREFERENCE TOWARDS

5.3 ADVERTISING MEDIA

A STUDY OF CONSUMER PREFERENCE TOWARDS

5.4 MESSAGE EXECUTION

A STUDY OF CONSUMER PREFERENCE TOWARDS

5.5 DISTRIBUTION SYSTEM ADOPTED BY CADBURY

A STUDY OF CONSUMER PREFERENCE TOWARDS

5.6 CONSUMER PREFERENCE

A STUDY OF CONSUMER PREFERENCE TOWARDS