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STUDY OF CONSUMER PREFERENCE

TOWARDS CADBURY AND NESTLE


CHOCOLATES

A report submitted to Delhi Business School, New Delhi

as a part fulfillment of

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

Submitted to: Submitted by:

Keerti Jain Ratul Bhattacharyya

Faculty: Roll No:151/9208490197

DELHI BUSINESS SCHOOL Batch: spring(09-11)

Semester:2nd

DELHI BUSINESS SCHOOL

dbs
delhi business school

Delhi Business School

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

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CERTIFICATE

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

Date: Name of the guide:


Keerti Jain

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DECLARETION

I hereby certify that the work which is being


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

RATUL BHATTACHARYYA

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ACKNOWLEDGEMENT

Concentration, dedication and application are necessary but not


sufficient to achieve any goal. Therefore, it is our pleasant duty to
offer our service of acknowledgement to those honourable
personalities of the department who helped me to follow the path to
success for the completion of this project.

Survey is an excellent tool for learning and exploration. No


classroom routine can substitute which is possible while working in
real situations. Application of theoretical knowledge to practical
situations is the bonanzas of this survey. Without a proper
combination of inspection and perspiration, it’s not easy to achieve
anything. There is always a sense of gratitude, which we express to
others for the help and the needy services they render during the
different phases of our lives. I too would like to do it as I really wish
to express my gratitude toward all those who have been helpful to me
directly or indirectly during the development of this project.

I would like to thank my faculty who was always there to help


and guide me when I needed help. His perceptive criticism kept me
working to make this project more full proof. I am thankful to him for
his encouraging and valuable support. Working under him was an
extremely knowledgeable and enriching experience for me. I am very
thankful to him for all the value addition and enhancement done to
me. No words can adequately express my overriding debt of gratitude
to my parents whose support helps me in all the way. Above all I shall
thank my friends who constantly encouraged and blessed me so as to
enable me to do this work successfully.

RATULBHATTACHARYYA

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INTRODUCTION

In this research I have survey the product performance and buying


behaviour of two famous brands of chocolates – Nestle and Cadbury,
which are consumed by people of all ages. During this research I have
interacted with people of “Kolkata”. After this research I came to
know how people perceives these products on the variables like price,
quality, advertisement, satisfaction, taste, packaging, brand loyalty
etc. I also came to know which particular brand of chocolate is most
preferred by people of different age groups. In this research I have
surveyed that how frequently and how much chocolate they consume,
whether they buy small, big or family pack. Trend of ongoing changes
in their likings has been shown in the report. In this report I have tried
to explain the entire research and facts product wise.

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THE 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. 6 500
crore by the year 2008. Till the eighties, the chocolate market was
small and the product category itself was fuzzy. In the eighties,
Cadbury’s - the virtual monopolist – had decided to focus its efforts
on making chocolates a distinct category with an identity of its own.
And the marketer had sharply positioned its product at children to do
that. Hence, chocolates bore an “Only for kids” tag, and kept adults at
bay. By the end of the eighties, Cadbury’s still ruled the roost with
over 80 percent market share. And though several brands - like Amul
and Campco - tried to break into the market, none of them had
succeeded in shaking the leader’s grip. In fact, Cadbury’s had become
a brand virtually generic to chocolates. Then chocolates were used to
reward and reinforce positive behaviour and hence were categorised
as a luxury reserved for special occasions. This was, a stark contrast
to the west where chocolates were snacked on, eaten as mini meals or
just to suppress pangs of hunger. But constant working by players
like Cadbury’s (re-launch of Cadbury’s Dairy Milk targeting adults
and as a casual any-time buy) and Nestle towards exploding the myth
that chocolates are meant for children only, has resulted in the
segment booming.

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Trends in the Industry

· With socio-economic changes rapidly taking place, the young and


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

The Indian Chocolate market can be sliced into four parts.

1. Moulded Chocolate Segment - comprising slab chocolates like


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

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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 buyer’s beware or when the market
was mainly the seller’s market. Now the whole concept of consumer’s
sovereignty prevails. The manufacturers produce and the sellers sell
whatever the consumer likes. In this sense, “consumer is the supreme
in the market”. As consumers, we play a very vital role in the health
of the economy local, national or international. The decision we make
concerning our consumption behavior affect the demand for the basic
raw materials, for the transportation, for the banking, for the
production; they effect the employment of workers and deployment of
resources and success of some industries and failures of others. Thus
marketer must understand this. Preference (or "taste") is a concept,
used in the social sciences, particularly economics. It assumes a real
or imagined "choice" between alternatives and the possibility of rank
ordering of these alternatives, based on happiness, satisfaction,
gratification, enjoyment, utility they provide. More generally, it can
be seen as a source of motivation. In cognitive sciences, individual
preferences enable choice of objectives/goals. The study of 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.

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SCOPE OF THE STUDY

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


of the fact that learning is all pervasive in our lives, psychologists do
not agree on how learning takes place. How individuals learn is a
matter of interest to marketers. They want to teach consumers in their
roles as their roles as consumers. They want consumers to learn about
their products, product attributes, potential consumers benefit, how to
use, maintain or even dispose of the product and new ways of
behaving that will satisfy not only the consumer’s needs, but the
marketer’s objectives. The scope of my study restricts itself to the
analysis of consumer preferences, perception and consumption of
Cadbury and Nestle Chocolates. There are many other brands of
chocolates available but my study is limited to two major players of
chocolates leaving behind the others. The scope of my study is also
restricts itself to Moradabad region only.

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OBJECTIVES OF THE STUDY

This project is based on the comparative study consumer behavior


towards Nestle and Cadbury chocolates. Objectives of the study are:
The other objective is to know about the customer satisfaction level
associated with the product and the customer preference level.
To increase customer satisfaction and recapture the market share by
fulfillingthe customer needs.
To study the factors affecting the consumption pattern.

LIMITATIONS OF THE STUDY

In attempt to make this project authentic and reliable, every possible


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

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RESEARCH METHODOLOGY

As mentioned earlier, the objective of the study is to formulate a


Marketing Strategy for any new entrant in the Indian Chocolate
Industry. While recommending the said strategy detailed information
from both primary and secondary sources was collected and analysed.
This included:

Primary Sources

Four level primary information collections were undertaken.


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

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Secondary Sources

A number of secondary sources of information were used. These


were:· Information: Industry statistics, problems facing the industry,
future outlook, etc. Also measures being adopted for cocoa production
development.
· Internet websites Of Cadbury’s, Nestle and indiainfoline.com,
askjeeves.com
· Extensive use of secondary information in the form of
magazines/journals/newspapers clippings, such as Business World,
Business Today, Business India, A&M, Brand Equity, Economic
Times, etc.

The methodology adopted was as follows:

 Industry Scenario Sketch (utilizing secondary information)


 Extensive Interviews held with Primary/Secondary Sources
(Companies/Chocolate manufacturers Association).
 Extensive retailer interviews in KOLKATA Area
 Formulation and administration of a questionnaire
 Formulation of the Recommended Strategy on the basis of the
above mentioned Primary and Secondary Information.

OBJECTIVES OF THE STUDY:

1. To get familiar with their marketing strategies separately.


2. To view the segments being targeted by these brands in the market.
3. Up to what extent do the public respond to their products?
4. To prepare a marketing plan for any brand that is planning to
enter the India Chocolate Market.
5. To be a relevant guide for any brand launch in India.

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Chocolate

The very word makes your mouth water.


Chocolate is more than just a food: it’s a state of mind.

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Chocolates
Chocolates! Chocolates!
Every body has a liking for them, be they in the form of bar
Or a tiny little gem,
Or shaped like a rectangle,
Or a sphere, a brick or an éclair.
For chocolate lovers it is fun,
To have them during rain, breeze or sun.
They are white and brown in color,
And taste sweet and bitter
Some have them in a glass of cold coffee, or in the form of a toffee.
Some eat them when they are sad
Some relish them when they are happy or have sweet dreams,
But I feel, to have chocolates
We don’t need a reason,
‘Cause we can have it
Anytime, any season!

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History of chocolate:
The origin of chocolate can be traced back to the ancient Maya and Aztec civilizations in
Central America, who first enjoyed “chocolati” a much-prized spicy drink made from
roasted cocoa beans.
Throughout its history, whether as cocoa or drinking chocolate beverage or confectionary
treat, chocolate has been a much sought after food.
The Aztec empire
“Chocolate”(in the form of a luxury drink) was consumed in large quantities by the
aztecs: the drink was described as “ finely ground, soft, foamy, reddish, bitter with chilli
water, aromatic flowers, vanilla and wild bee honey.
The dry climate meant the Aztecs were unable to grow cocoa trees, and had to obtain
supplies of cocoa beans from “ tribute” or trade
Don Cortes
The Spanish invaded Mexico in the 16th century, by this time the Aztecs had created a
powerful empire, and the Spanish armies conquered Mexico. Don Cortes was made
captain general and governor of Mexico.
When he returned to Spain in1528 he loaded his galleons with cocoa beans 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.
History of chocolate:
The origin of chocolate can be traced back to the ancient Maya and Aztec civilizations in
Central America, who first enjoyed “chocolati” a much-prized spicy drink made from
roasted cocoa beans.
Throughout its history, whether as cocoa or drinking chocolate beverage or confectionary
treat, chocolate has been a much sought after food.
The Aztec empire
“Chocolate”(in the form of a luxury drink) was consumed in large quantities by the
aztecs: the drink was described as “ finely ground, soft, foamy, reddish, bitter with chilli
water, aromatic flowers, vanilla and wild bee honey.
The dry climate meant the Aztecs were unable to grow cocoa trees, and had to obtain
supplies of cocoa beans from “ tribute” or trade
Don Cortes
The Spanish invaded Mexico in the 16th century, by this time the Aztecs had created a
powerful empire, and the Spanish armies conquered Mexico. Don Cortes was made
captain general and governor of Mexico.
When he returned to Spain in1528 he loaded his galleons with cocoa beans 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.

~ 15 ~
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 1650’s
First chocolate for eating
Up until this point all chocolate recipes were based on plain chocolate. It was an English
doctor, sir Hans’s 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 xocolatl, 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 Aztec’s 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
xocolatl: “ 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
Xocolatl! or chocolat or chocolate as it became known, was brought to Europe by
Cortez, by this time the conquistadors had learned to make the drink more palatable to
European tastes by mixing the ground roasted beans with sugar and vanilla ( a practice
still continued today), thus offsetting the spicy bitterness of the brew the Aztec’s 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 sheep’s droppings, they burned the whole
ship in frustration. If only they had known, chocolate was so expensive at that time, that
it was worth it’s weight in silver ( if not gold), chocolate was treasure indeed !
Within a few years, the cocoa beverage made from the powder produced in Spain had
become popular throughout Europe, in the Spanish Netherlands, Italy, France, Germany
and – in about 1520 – it arrived in England.

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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 America’s
Event’s went full circle when English colonists carried chocolate (and coffee) with them
to England’s 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 Quaker’s 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 that’s another story.
What is certain is that the fry, row tree and Cadbury families in England among others,
began chocolate making and in fact Joseph fry of fry &sons (founded 1728 in Bristol,
England) is credited with producing and selling the world’s first chocolate bar. Fry’s 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 1600’s. Then in 1828 a Dutch chemist, Johannes
van houten, invented a method of extracting the bitter tasting fat or “cocoa butter” from
the roasted ground beans, his aim was to make the drink smoother and more palatable,
however he unknowingly paved the way for solid chocolate as we know it.
Chocolate as we know it today first appeared in 1847 when fry & sons of Bristol,
England – mixed sugar with cocoa powder and cocoa butter (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.

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CHOCOLATE PRODUCTION
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.
TheVarieties
There are two quite different basic classifications of cocoa, under which
practically all varieties can be categorised: 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.
TheHarvest
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.
Crushingandshelling
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.

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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 steel 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 millimetre.)
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 "concha", meaning a shell) is the name given to the
troughs in which 100 to 1000 kilograms of chocolate paste at a time can be heated up to
80 °C and, while being constantly stirred, is given a velvet smoothness by the addition of
certain amounts of cocoa butter. A kind of aeration of the liquid chocolate paste then
takes place in the conches: its bitter taste gradually disappears and the flavor is fully
developed. The chocolate no longer seems sandy, but dissolves meltingly on the tongue.
It has attained the outstanding purity, which gives it its reputation.

~ 19 ~
CONSUMPTION OF CHOCOLATES IN INDIA
Chocolate consumption in India is extremely low. Per capita
consumption is around 160 gms in the urban areas, compared to 8-
10kg in the developed countries. In rural areas, it is even lower.
Chocolates in India are consumed as indulgence and not as a snack
food. A strong volume growth was witnessed in the early 90’s when
Cadbury repositioned chocolates from children to adult consumption.
The biggest opportunity is likely to stem from increasing the
consumer base. Leading players like Cadbury and Nestle have been
attempting to do this by value for money offerings, which are
affordable to the masses.

~ 20 ~
NESTLE’

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

Nestle India- Presence Across India


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

~ 21 ~
Nestle’ Story
Nestlé was founded in 1867 on the shores of Lake Geneva in Vevey,
Switzerland and its first product was “Farine Lactée Nestlé”, an infant cereal
specially formulated by Henri Nestlé to provide and improve infant nutrition.
From its first historic merger with the Anglo-Swiss Condensed Milk Company
in 1905, Nestlé has grown to become the world’s largest and most diversified
food Company, and is about twice the size of its nearest competitor in the food
and beverage sector. Nestlé’s trademark of birds in a nest, derived from Henri
Nestlé’s personal coat of arms, evokes the values upon which he founded his
Company. Namely, the values of security, maternity and affection, nature and
nourishment, family and tradition. Today, it is not only the central element of
Nestlé’s corporate identity but serves to define the Company’s products,
responsibilities, business practices, ethics and goals. In 2004, Nestlé had around
247,000 employees worldwide, operated 500 factories in approx. 100 countries
and offered over 8,000 products to millions of consumers universally. The
Company’s transparent business practices, pioneering environment policy and
respect for the fundamental values of different cultures have earned it an
enviable place in the countries it operates in. Nestlé’s activities contribute to
and nurture the sustainable economic development of people, communities and
nations. Above all, Nestlé is dedicated to bringing the joy of ‘Good Food, Good
Life’ to peoplethroughout their lives, throughout the world.

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

~ 22 ~
MILK PRODUCTS AND NUTRITION:
NESTLÉ EVERYDAY Dairy Whitener
NESTLÉ EVERYDAY Slim
NESTLÉ EVERYDAY Ghee
NESTLÉ MILKMAID
NESTLÉ Fresh 'n' Natural Dahi
NESTLÉ Fresh 'n' Natural Slim Dahi
NESTLÉ Jeera Raita
NESTLÉ MILKMAID Fruit yoghurt
NESTLÉ Milk
NESTLÉ Slim Milk

BEVERAGES:
NESCAFÉ CLASSIC
NESCAFÉ SUNRISE
NESTLÉ MILO
NESCAFÉ 3 in 1
NESCAFÉ Koolerz

PREPARED DISHES AND COOKING AIDS


MAGGI 2-MINUTE Noodles
MAGGI Vegetable Atta Noodles
MAGGI Dal Atta Noodles
MAGGI Rice Noodles Mania
MAGGI Sauces
MAGGI Pizza Mazza
MAGGI Healthy Soups
MAGGI Healthy Soup- Sanjeevni
MAGGI MAGIC Cubes

CHOCOLATES & CONFECTIONARY


NESTLÉ KIT KAT
NESTLÉ KIT KAT LITE
NESTLÉ MUNCH
NESTLÉ MUNCH POP CHOC
NESTLÉ MILKYBAR
NESTLÉ MILKYBAR CHOO
NESTLÉ BAR-ONE
NESTLÉ FUNBAR
NESTLÉ Milk Chocolate
POLO
POLO Powermint
NESTLÉ Eclairs

~ 23 ~
NESTLEKITKAT

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

NESTLE MUNCH

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

NESTLE MILKY BAR:

NESTLÉ MILKYBAR is a delicious milky treat, which kids love. Relaunched


in January 2006 with a Calcium Rich recipe, NESTLÉ MILKYBAR is a
favorite with parents to treat their kids with.

NESTLE BAR-ONE

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

NESTLE Milk Chocolate:

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

~ 24 ~
CADBURY
How Cadbury Chocolate is made

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

Four years of hard work were invested in the project and in 1905 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.

~ 25 ~
COMPANY OVERVIEW OF CADBURY INDIA
Cadbury began its operations in 1948 by importing chocolates and then re-
packing them before distribution in the Indian market. After 59 years of
existence, it today has five company-owned manufacturing facilities at Thane,
Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal
Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). The
corporate office is in Mumbai.Currently Cadbury India operates in three sectors
viz. Chocolate Confectionery, Milk Food Drinks and in the Candy category.
In the Chocolate Confectionery business, Cadbury has maintained its
undisputed leadership over the years. Some of the key brands are Cadbury
Dairy Milk, 5 Star, Perk, Éclairs and Celebrations. Cadbury enjoys a value
market share of over 70% - the highest Cadbury brand share in the world! Their
flagship brand Cadbury Dairy Milk is considered the "gold standard" for
chocolates in India. The pure taste of CDM defines the chocolate taste for the
Indian consumer. In the Milk Food drinks segment their main product is
Bournvita - the leading Malted Food Drink (MFD) in the country. Similarly in
the medicated candy category Halls is the undisputed leader.
The Cadbury India Brand Strategy has received consistent support through
simple but imaginative extensions to product categories and distribution. A
good example of this is the development of Bytes. Crispy wafers filled with
coca cream in the form of a bagged snack, Bytes is positioned as "The new
concept of sweet snacking". It delivers the taste of chocolate in the form of a
light snack, and thus heralds the entry of Cadbury India into the growing bagged
Snack Market, which has been dominated until now by Salted
Bagged Snack Brands. Bytes was first launched in South India in 2003.
Since 1965 Cadbury has also pioneered the development of cocoa cultivation in
India. For over two decades, it has worked with the Kerala Agriculture
University to undertake cocoa research and released clones, hybrids that
improve the cocoa yield. Today, Cadbury is poised in its leap towards quantum
growth and new categories of business, namely gums, mints, snacking and
gifting. It is a part of the Cadbury Schweppes Group, world's No.1
Confectionery Company.

~ 26 ~
CADBURY WORLD WIDE

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


regional presence in beverages in the Americas and Australia.

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

~ 27 ~
Cadbury Brands:
Chocolates
Snacks
Beverages
Candy
SNACKS:
Bytes
BEVERAGES
Bournvita
CANDY
Halls
CHOCOLATES
Dairy Milk
5 Star
Perk
Celebrations
Temptation
Eclairs
Gems
DAIRY MILK

The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K.,
but the journey with chocolate lovers in India began in1948. The variants Fruit
& Nut, Crackle and Roast Almond, combine the classic taste of Cadbury Dairy
Milk with a variety of ingredients and are very popular amongst teens & adults.
Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk
Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy
Milk 2 in 1, a delightful combination of milk chocolate and white chocolate.
Giving consumers an exciting reason to keep coming back into the fun filled
world of Cadbury. Today, Cadbury Dairy Milk alone holds 30% value share of
the Indian chocolate market.

~ 28 ~
5 STAR

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

PERK

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

~ 29 ~
CELEBRATIONS

Cadbury Celebrations was aimed at replacing traditional gifting options like


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

TEMPTATION

Cadbury Temptations is a range of delicious premium chocolate in five


flavours variants - Roast Almond Coffee, Honey Apricot, Mint Crunch, Black
Forest and Old Jamaica.

~ 30 ~
VISION
The governing objective for Cadbury India is to deliver:
· Superior Shareholder Value
· Cadbury in every pocket

The company believe this requires:


· Broadening our consumer appeal and extending their reach to newer markets
· Sustained growth of their market share through aggressive product
development
· Striving for international quality in their products and processes
· Focusing on cost competitiveness and productivity in their operations and
innovative utilisation of their assets
· Investing to develop people.

Finding a Market Winner


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

~ 31 ~
The initial impetus for embarking on a New Product
Development project can be:
· Changes in consumer lifestyles
· Technology developments where new processing techniques have been
devised
· The need for market extension abroad, particularly into Asia Pacific, and the
demise of trade barriers.
However, products cannot be simply transferred from one market to another
without review and possible adaptation to suit differing expectations and
cultures.
Whether the product strategy is:
· Existing product improvement
· New product development within the current range of activity
· Production diversification

ADVERTISING & SALES PROMOTION


As we have discussed the importance of Advertising and Sales promotion in
introduction, so we know how much advertising aim sales promotion are
important.
The slogans of advertising are the tools of sales promotion are so important
which couples the customer to purchase the product. Now we are going to
discuss all these things one by one about Cadbury.
Following are a few advertising slogans used by Cadbury for introducing the
product to the customers:-
· THE REAL TASTE OF LIFE (DAIRY MILK )
· THODI SI PET POOJA KABHI BHI KAHI BHI (PERK)
· WHEN EVER ON HUNGER STRIKE (PERK)
· TAN KI SHAKTI, MAN KI SHAKTI (BOURNVITA)
· KUCH ZADA HI SOLID (PICNIC)
· YEH CHOCOLATE KHAE AAP INHE KHAE (ECLAIRS)
All these slogans used by Cadbury are beautifully prepared because they can
compel the consumer to buy the product to some extent.
Now we will discuss them in details with the help of which we can easily
understand how these slogans can leave these impression on the customer.

~ 32 ~
The Real Taste of Life
This slogan was prepared for the first chocolate introduce by the Cadbury first
time in India. The chocolate was ‘Dairy Milk’. This slogan says that there are
many types of products present in the market, they have different taste but
Dairy Milk is the best and the true taste of the life. This slogan also stands for
the victory. On electronic media, the advertisement shows that a cricketer wins
the match and after that he and his girl friend eats this product. Therefore, this
stands for victory of any body eats this product will definitely win in his life.

· Thodi Si Pet Pooja Kabhi Bhi Kahi Bhi


When Cadbury introduced its next chocolate named ‘Perk’ this slogan were
used. This explains that if anybody is hungry and he do not have any thing to
eat accept this Perk then he can have this. This shows that Perk is so good
chocolate which can be used as a substitute of food and is a complete food.

· Whenever on Hunger Strike


Later on Cadbury came out with new slogan on television; the advertisement
shows that few students are on hunger strike. But they had the chocolate. This
shows that nobody can control himself/herself if this product of Cadbury is
lying in front of that person. This means that Cadbury product is so good that
nobody can leave it.

· Tan Ki Shakti, Man Ki Shakti


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

~ 33 ~
DISTRIBUTION SYSTEM ADOPTED BY
CADBURY
Cadbury Schweppes pick the world number 3 soda market has aggfed to sell
most of its soft drinks business outside the US to Coca Co. for $ 1.85 billions
to finance a head on battle with Coke in the No. 1 soda makers home market.
The agreements included the Schwoers Dr. Pepper chanda dry and crush
brands and exude South Africa and France the pact which was dependent on
regulatory approval was likely to be concealed in mid 1999 Cadbury said.
The more will allow Cadbury to expand it Dr. Peeper business in US where it
derives two-thirds of its soft drinks sales and was a 15 per cent market share
at the same time it get Cadbury out of markets where it is growing at a slower
pace. The shares rose as much as 70.5 per cent or 7.5 per cent or 7.5 per
cent 1002.
“This sort out the places where Cadbury’s systems weren’t strong enough to
compete with Coca-Cola,” said Mr. David long an analyst a Henderson
Croshtwaite, “they were fighting with proper for this.

Patterns of distribution channels and types of


distribution intermediaries
Manufacture

Stockiest/Distributor

Semi-wholesaler

Retailer

User

~ 34 ~
Main steps involved in Developing the channel design
· Formulation of channel objectives.
· Identification of channel functions.
· Analysing the product characteristics and linking channel design to the
product.
· Evaluation of the distribution environment including legal aspects
· Evaluation of competitors channel patterns.
· Evaluation of company resources and matching the channel design to
the resources.
· Development of alternative channel designs and selation of the one
· that suits the firm most.

Qualities that Cadbury management look for while selecting


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

~ 35 ~
PRICING POLICIES ADOPTED BY CADBURY
Despite intensifying competition for target share and a stream of new
products, pitted against each other, the price line of popular brands of
chocolate had move upward over the past one year.
Prices of key brands like Nestle’s Kitkat and Cadbury’s Dairy Milk have rose
by 25 per cent each between November 2001 and November 2002.
Brands such as Cadbury’s Eclairs, where the unit prices is lower, have seen a
sharpener price hike.
A major portion of the price revision occurred in the last part of 2001 and in
the first quarter of 2002.
A sharp rise in cocoa prices and rupee and depreciation escalation in input
costs for chocolate manufacturers in the last leg of fiscal 2001-98.
Whole cocoa, prices have receded from their high after September 2001,
rupee depreciation and the higher incidence depreciation and the higher
incidence of excise duties has kept the price line of chocolates.
The cost of cocoa, the key input, accounts for around 45 per cent of the
manufacturing costs for chocolates production.
Domestic cocoa production (estimated at 4500) to 5000 tonnes for the current
year) has been stagnant and takes are of less than a third of domestic
requirements of chocolate and malted food manufacturers. Manufacturers
such as Cadbury and Nestle India import over half of this cocoa requirements.
International cocoa prices moved up from 140 cents per kg in January 2001 to
peak at 190 cents per kg in September 2001, prompting a round or price
increase in chocolates in the last part of 2001.
Subsequently cocoa prices have receded to around 150-160 cents per kg and
are expected to rule at these levels in the near term. However, rupee
depreciation of around 17 per cent since September 2001 is likely to have
offset the impact of this on production costs.
The reclassification of the wafer-coated chocolates, making them chargeable
to an excise duty of 18 per cent, against 8 per cent earlier, is also likely to
contribute to price escalation.
The excise authorities have recently passed an order on Nestle, directing it to
pay excise dues at the higher rate of 18 per cent. The matter is now under
appeal. Maximum Retail Price - based excise duties, which have been
introduced on chocolates in the latest budget could also add to the production
cost especially in the premium categories. Though cocoa prices have extended
to rule relatively soft. The price line for chocolates appears unlikely to come
down in the near future.

~ 36 ~
FACTORS INFLUENCING PRICING OF
CADBURY
Internal Factors
· Corporate and marketing objectives of the firm.
· The image sought by the firm through pricing.
· The characteristics of the product.
· Price elasticity of demand of the product.
· The stage of the product on the product life cycle.
· Use pattern and turn around rate of the product.
· Cost of manufacturing and marketing.
· Extent of distinctiveness of the product and extent of production
differentiation practiced by the firm.
· Other elements of the marketing mix of the firm and their interaction with
pricing.
· Composition of the product line of the firm.
External Factors
· Market characteristics.
· Buyer’s behavior in respect of the given product.
· Bargaining power of major customers.
· Competitors pricing policy.
· Government controls regulations on pricing.
· Other relevant legal aspects.
· Societal (or social) considerations.
· Understanding, if any reached with price cartels.
Cadbury objective of pricing
· Profit maximization in the short-term.
· Profit optimization in the long-term.
· A minimum return (or target return) on investment.
· A minimum return on sales turnover.
· Targets sales volume.
· Target market share.
· Deeper penetration of the market.
· Entering new markets.
· Target profit on the entire product line irrespective of profit level in individual
products.
· Keeping competition out, or keeping it under check.
· Fast turn around and early cash recovery.
· Stabilizing prices and margins in the market.

~ 37 ~
PREFER CHOCOLATES?

YES
NO

figure:1

Analysis & interpretation:


Chocolate is a product which is like by the all age group of people. According
to the survey 83% of people says yes they eat chocolate and 17% say no they
are not eating chocolate. May be the reason behind that is they are not eating
chocolate on daily or weakly basis or may be they are eating any other brand of
chocolate.

~ 38 ~
PREFERENCE OF BRAND

CADBURY
NESTLE

figure:2

Analysis & Interpretation:


There are many brands available in the market. But the market leaders in India
are basically two brands like Cadbury & Nestle. According to survey 64% of
the market is captured by the Cadbury and only 36% of the market is covered
by the Nestle. To capture the market the company should do more advertising
and sales distribution. And also should maintain quality of the product compare
to the competitors.

~ 39 ~
BAR ONE NESTLE
5% MILK CHOCOLATE
MILKY BAR 3%
3%

KITKAT
36%

MUNCH
53%

figure:3

CADBURY TEMPTATION
1%
CELEBRATION
PEARK
2%
15%

5 STAR
18%
DAIRY MILK
64%

figure:4

Analysis & Interpretation:


In this survey nestle is having five sub-brands like kitkat, Munch, Milkybar,
Barone,milk chocolates and their consumption are like kitkat 33% ,munch 56
,milky bar 3% ,bare one 5% ,and milk chocolate 3%. And if we talk about
Cadbury the sub-brand of the Cadbury is dairymilk, 5 star, perk, celebration and
Temptation and their consumption are like dairy milk 62%, 5 star 17%, perk
14%, celebration 2% and Temptation 5%. According to the survey the highest
selling product is Cadbury.

~ 40 ~
Rank the sub-brands of chocolates according to your preference

NESTLE

MILK
CHOCOLATE RANKING SUB BRAND
3%
BAR ONE
MILKY BAR 11%
3% KIT KAT
33%

MUNCH
50%

figure:5

CADBURY

TEMPTATION RANKING SUB BRAND


3%

CELEBRATION
6%
DAIRY MILK
PERK 47%
33%

5 STAR
11%
figure:6

Analysis & Interpretation


In this survey I found that the most selling product is Munch the sub-brand of
Nestle the Munch has capture the 50% of the market as compared to the
Cadbury product the highest selling product of Cadbury is Dairy milk which
captured the market stake of 47% which is as compared to Much 20%less which
is a good sigh for Nestle and the less consumption of the Nestle product is Milk
bar & Milk Chocolate the market share is only 3% and in Cadbury less selling
product are Celebration and Temptation the reason behind
this is they are too Costly to consume. And it can only use occasionally.

~ 41 ~
Which form of a chocolate do you like?

FORM OF CHOCOLATES

CHEW
6%
NUTTIES
18%
HARD
47%

CRUNCHY
29%

figure:7

Analysis & interpretation:


Every person have there own taste and preferences towards the eatable product
in chocolates there are four varieties available in the market among this 47% of
the consumer like hard chocolates, 29% of the consumer like crunchy
chocolates, 18% of the consumer like nutties chocolates & only 6% of the
consumer like Chew chocolates.

~ 42 ~
What pack do you purchase?

SIZE OF PACK

FAMILY PACK
10%
BIG
17%

SMALL
73%

figure:8

Analysis & Interpretation:


The chocolates are available in the market in different packaging like small, big,
& family pack, from the survey we can say that the consumption of the
chocolates are more eaten by the teenage group so they more prefer the small
packaging because of there availability in market is good and most important
thing is its very much affordable. According to the survey 73% are using small
pack, 17% are using big pack of the chocolates, 10% are consuming family
pack because of there high price. So we can easily see that the consumption of
small pack is having boom in the market compare to other packaging

~ 43 ~
Which promotional offers attract you most?

Sales

ANY OTHER
4%

FREE GIFT
12%

PRICE OFFER
84%

figure:9

Analysis & Interpretation:


To sell out the product there are many promotions activity conducted by the company to
face the competition the offer give by the company are like free gift, price offer, or any
other scheme. In this 12% are giving the free gift offer (scratch the card scheme), 84%
are directly giving the price offer, and 4% giving the any other kind of scheme.

~ 44 ~
Which of these factors affects your purchase?

Sales
INGREDIENCE
8%
ATTRACTIVE
DISPLAY
7%

BRAND
AMBASSADOR
ADVERTISEMENT 25%
60%

figure:10

Analysis & Interpretation:


There are many factors affecting at the time of purchase. So company is doing
promotional activities to acquire the desired target of the product. Basically
there are six main type of the promotional activities like 69% of the
advertisement, 1% of the suggestions, 2% of 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.

~ 45 ~
Using brand ambassador by Cadbury.

~ 46 ~
Findings
CONSUMER RESEARCH:
Consumer research deals with consumer and their problems and solution to the
problems. In this we came to know about the consumers need and
expectation levels regarding products and ascertainable levels of consumer
satisfaction.

PRODUCT RESEARCH:
Under product research I came to know about the modification which
consumers wants as to the quality, packing, shape, color, and quantity etc. of
their favorite chocolate.

PRICING RESEARCH:
This includes ability to consume, to pay for the product, how much a person can
spend on his/her favorite chocolate. In this I have tried to find out consumer’s
price expectations and reactions.

ADVERTISING RESEARCH:
Under this I have concluded that whether the advertisement appeals the
consumers or not. This also includes evaluating and selecting the proper media-
mix and measuring advertising effectiveness. From the one and half month
experience of our research project with Consumer preference towards Nestle
and Cadbury Chocolates, We have come to know lot things and it has enhanced
our knowledge to great extent. We found many things which are well executed
by distributors. Here are some of the key findings given by us are purely based
on our research. It doesn’t have any kind of bias from our side.

~ 47 ~
They are given as under:

By doing the comparison of Nestle and Cadbury chocolates, we have found that
the preference of the chocolates more preferred by the consumer is Cadbury.

From the analysis we have found that Nestlé’s some brand has covered 50% of
the market in one product (Munch) of the chocolates which is a very good sign
for the company.

Through the research we found that consumer is very conscious about the
quality of the product in that matter they are not ready to compromise. And we
found both company product are very qualitative.

In some cases we found that if a product is not available in the market than
some consumer would to switchover to another product or brand.

So from these survey we have found that the consumption of the chocolates are
more in children and teenage group though having any occasion or not having
any occasion. The most selling product of both the companies is in small size of
chocolates and there market share is 73% because it’s not much costlier and is
also easily available & affordable.

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SUGGESTIONS AND RECOMMENDATIONS

Chocolates products at Mumbai city are available in comparison to previous


years, but still there is requirement of development in Chocolate products.
Due to increasing overall cost in Chocolate Products everywhere, cost
format should be made as such that it is affordable to each and everyone in
the society. In this we also found that if the demanded brand is not available,
so at that time the customers switch over the brand of the chocolate so, here
the company should build up the healthy distribution channel by which
company can attract the customers and company loose the fear from the
market. Company should concentrate more on television for advertisement,
as mostly people get attracted through television only. For promotional
offers, company should go for free gifts rather than going for other ways.
Nestle company should concentrate on its packing as people are least
satisfied with it while Cadbury should concentrate on the shape of a
chocolate. People are unsatisfied with the price and quantity of chocolate so
companies should concentrate in this regard also.

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CONCLUSION

A survey of the people has been conducted to know the liking pattern of
the two products Cadbury and Nestle. It is observed that overall people like
to eat Cadbury brand rather than Nestle. It is concluded that mostly people
preferred Dairy Milk of Cadbury due to its flavor/taste, quality and image
and due to its hard form. Some people often like to have a chocolate with
good flavor, quality hard form. Some people often like to have a chocolate
with good flavor, quality taste and crunchiness. It is thus concluded from
the facts collected that mostly people refer to buy big pack of their favorite
chocolate, and sometimes some of them go for small and family pack .

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BIBLIOGRAPHY

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


India).
Business today
Business World,
Business India,
A&M, Brand Equity,
Economic Times
CMIE reports
www.indiainfoline.com
www.domain_b.com
www.agencyfaqs.com
www.nestle.in
www.nil.com
www.cadburys.com
www.web-enable.com/industry/enabling-scm.asp
indiainfoline.com
askjeeves.com

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