Chapter- 1

AN Introduction
OF
Company

NESTLE’

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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.

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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.

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

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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 people throughout their lives, throughout the world.

Nestle’ Brands

 Milk Products & Nutrition

 Beverages

 Prepared Dishes and Cooking Aids

 Chocolates & Confectionary

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

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• 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

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 • NESTLÉ MUNCH

• NESTLÉ MUNCH POP CHOC

• NESTLÉ MILKYBAR

• NESTLÉ MILKYBAR CHOO

• NESTLÉ BAR-ONE

• NESTLÉ FUNBAR

• NESTLÉ Milk Chocolate

• POLO

• POLO Powermint

• NESTLÉ Eclairs

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

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NESTLÉ MUNCH is wafer layer covered with delicious choco layer. NESTLÉ

MUNCHis 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

NESTLÉ Milk Chocolate is a milk chocolate with a

delicious taste. Kids just love it!CADBURY

How Cadbury Chocolate is made

John Cadbury

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Milk chocolate for eating was first made by Cadbury in 1897 by adding milk

powder John paste to the dark chocolate recipe of cocoa mass, cocoa butter and

sugar. By today's standards this chocolate was not particularly good: it was

coarse and dry and not sweet or milky enough for public tastes. There was a

great deal of competition from continental manufacturers, not only the

French,but also the Swiss, renowned for their milk chocolate. Led by George

Cadbury Junior, the Bournville experts set out to meet the challenge. A

considerable amount of time and money was spent on research and on new plant

designed to produce the chocolate in larger quantities. A recipe was formulated

incorporating fresh milk, and production processes were developed to produce a

milk chocolate 'not merely as good as, but better than' the imported milk

chocolate'.

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

1905 whatwas to be Cadbury's top selling brand was launched.Three names

were considered: Jersey, Highland Milk and Dairy Maid.Dairy Maid became

Dairy Milk, and Cadbury's Dairy Milk, with its unique flavour and smooth

creamy texture, was ready to challenge the Swiss domination of the milk

chocolate market.

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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.

AN INTRODUCTIOn
OF
cadbury

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COMPANY OVERVIEW OF CADBURY INDIA

Cadbury began its operations in 1948 by importing chocolates and then re-

packing them before distribution in the Indian market. After 59 years of

existence, it today has five company-owned manufacturing facilities at Thane,

Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal

Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). The

corporate office is in Mumbai.

Currently Cadbury India operates in three sectors viz. Chocolate Confectionery,

Milk Food Drinks and in the Candy category.

In the Chocolate Confectionery business, Cadbury has maintained its

undisputed leadership over the years. Some of the key brands are Cadbury

Dairy Milk, 5 Star, Perk, Éclairs and Celebrations. Cadbury enjoys a value

market share of over 70% - the highest Cadbury brand share in the world! Their

flagship brand Cadbury Dairy Milk is considered the "gold standard" for
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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.

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

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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 andchocolate.

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

Cadbury Brands:

 Chocolates

 Snacks

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 Beverages

 Candy

 SNACKS:

 Bytes

 BEVERAGES

 Bournvita

 CANDY

 Halls

 CHOCOLATES

 Dairy Milk

 5 Star

 Perk

 Celebrations

 Temptation

 Eclairs

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  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 in 1948. The variants Fruit & Nut, Crackle and

Roast Almond, combine the classic taste of Cadbury Dairy

Milk with a variety of ingredients and are very popular

amongst teens & adults. Cadbury Dairy Milk has exciting

products on offer - Cadbury Dairy Milk Wowie, chocolate

with Disney characters embossed in it, and Cadbury Dairy

Milk 2 in 1, a delightful combination of milk chocolate and

white chocolate. Giving consumers an exciting reason to

keep coming back into the fun filled world of Cadbury.

Today, Cadbury Dairy Milk alone holds 30% value share of

the Indian chocolate market. 5 STAR

the second largest after Cadbury Dairy Milk with a market share of 14%,

Cadbury 5 Star moves from strength to strength every year by increasing its

user base. 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

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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 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.

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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.

Chapter- 2

AN Introduction
OF
STUDY

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 Chocolate

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

state of mind.

INTRODUCTION

In this research I have survey the product performance and buying behavior 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
“LUDHIANA”. 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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 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

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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.

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 Ambala region only.

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 Chocolates

Chocolates! Chocolates!

Everybody 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,

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 But I feel, to have chocolates

We don’t need a reason,

‘Cause we can have it

Anytime, any season!

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

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The Spanish invaded Mexico in the 16th century, by this time the Aztecs had

created a powerful empire, and the Spanish armies conquered Mexico. Don

Cortes was made captain general and governor of Mexico.

When he returned to Spain in1528 he loaded his galleons with cocoa beans and

equipment for making the chocolate drink. Soon “chocolate” became a

fashionable drink enjoyed by the rich in Spain.

Chocolate across Europe

An Italian traveler, Francesco carletti, was the first to break the Spanish

monopoly. He had visited Central America and seen how the Indians prepared

the cocoa beans and how they made the drink, and by 1606 chocolate was well

established in Italy.

Drinking chocolate

The secret of chocolate was taken to France in 1615, when Anne, daughter of

Phillip 2 of Spain married king Louis 13 of France

The French court enthusiastically adopted this new exotic drink, which was

considered to have medicinal benefits as well as being a nourishing food.

Gradually the custom of drinking chocolate spread across Europe, reaching

England in the 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-

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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

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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

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Europe, in the Spanish Netherlands, Italy, France, Germany and – in about 1520

– it arrived in England.The first chocolate house in England opened in London

in 1657 followed rapidly by many others. Like the already well established

coffee houses, they were used as clubs where the wealthy and business

community met to smoke a clay pipe of tobacco, conduct business and socialize

over a cup of chocolate.

Back to the 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

26
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 wouldbe 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

27
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.

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 thesweetish flesh of the cocoa fruit. They regarded

the precious bean aswaste or used it, as was

the case among the Aztecs, as a form of currency.

TheVarieties

There are two quite different basic classifications of cocoa, under

whichpractically all varieties can be categorised: Criollo and

Forastero cocoas.The pure variety of the Criollo tree is found

Mainly in its native Equadorand Venezuela. The seeds are of finer

qualitythan those of the Forastero variety.They have a particularly

fine, mild aroma and are, therefore, used only in the production

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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 ofwood, jute fibres, sand and even the finest dust

are extracted by powerfulvacuum equipment.

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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.

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

30
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

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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.

32
 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.

33
 Chapter- 3

Review

of

LITERATURE

34
Chapter- 4

RESEARCH
METHODOLOGY

35
 RESEARCH METHODOLOGY

This chapter describes the methodology of the study. This project is based on

information collected from primary sources. After the detailed study, an attempt

has been made to present comprehensive analysis of consumption of Cadbury

and nestle chocolates consumed by the people. The data had been used to cover

various aspects like consumption, consumer’s preference and customer’s

satisfaction regarding Cadbury and Nestle chocolates. In collecting requisite

data and information regarding the topic selected, I went to the residents of

Ludhiana and collected the data.

OBJECTIVES OF THE STUDY

This project is based on the comparative study consumer behaviour towards

Nestle and Cadbury chocolates. Objectives of the study are:

 The other objective is to know about the customer satisfaction level

36
 associated with the product and the customer preference level.

 To increase customer satisfaction and recapture the market share by

fulfilling the customer needs.

 To study the factors affecting the consumption pattern.

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:

A sample of 100 people was taken on the basis of convenience. The actual

consumers were contacted on the basis of random sampling.

Research Period:

Research work is only carried for 2 or 3 weeks.

Research Instrument:

This work is carried out through self-administered questionnaires. The questions

included were open ended, dichotomous and offered multiple choices.

Data Collection:

The data, which is collected for the purpose of study, is divided into 2 bases:

 Primary Source: The primary data comprises information survey of

“Comparative study of consumer behavior towards Nestle and Cadbury

chocolates”. The data has been collected directly from respondent with the help
37
of structured questionnaires.

 Secondary Source: The secondary data was collected from internet,

References from Library.

Data Analysis:

The data is analyzed on the basis of suitable tables by using mathematical

techniques.

Chapter- 5

STUDY

OF

PROBLEM

38
 DATA ANAYLSIS
QUESTION 1

LIKING FOR THE CHOCOLATES

Table:1

Liking for the Chocolate Yes No

Number of Respondents 95 5

39
From the above analysis of the given sample of 100 respondents it is concluded

that out of 100 people 95 people likes to eat chocolate while only 5 people don’t

prefer to eat chocolate

DIFFERENT AGE GROUPS

Table:2

AGE 0-10 10-20 20-30 ABOVE 30

NUMBER OF 14 42 33 11

RESPONDENT

According to the above analysis it is concluded that I have surveyed 100

respondents out of which 14, 42, 33, 11 belongs to age group 0-10, 10-20, 20-

30, above30 respectively.

40
 AGE GROUPS
BRANDS 0-10 10-20 20-30 ABOVE

30
CADBURY 7 35 24 5
NESTLE 5 6 8 4
NO CONSUMTION 2 1 1 2

PREFERENCE ACCORDING TO AGE GROUPS

Table:3

41
According to the above analysis it is concluded that people of different age

groups prefer mostly Cadbury brand of chocolate while Nestle brand is least

preferred by the age group between 10-20.People of age group above 30

equally likes to have both brand

BRAND PREFERENCE

Table:4

BRANDS PREFERENCE BY CONSUMERS

CADBURY 73
NESTLE 22

42
From the above analysis of given sample of 95 respondents who eat chocolates

it is concluded that only 22 people prefer to eat Nestle chocolates while 73

people likes to eat Cadbury chocolates

PURCHASE OF CHOCOLATES

PURCHASE OF CADBURY CHOCOLATES

Table:5

CADBURY CHOCOLATES
SUB- BRANDS NUMBER OF RESPONDANTS
DAIRY MILK 69
5 STAR 64
PERK 61
CELEBRATIONS 49
TEMPTATIONS 41

43
From the above analysis of given sample of 73 respondents who eat Cadbury

chocolates it is concluded that mostly people has purchased Dairy Milk sub-

brand of Cadbury while Temptation is least purchased by the people.

PURCHASE OF NESTLE CHOCOLATES

Table:6

NESTLE CHOCOLATES
SUB- BRANDS NUMBER OF RESPONDANTS
KIT KAT 17
MUNCH 19
MILKY BAR 18
BAR- ONE 16
MILK CHOCOLATE 11

44
From the above analysis of given sample of 22 respondents who eat Nestle

chocolates it is concluded that mostly all sub-brands are purchased by people

but top most is Munch followed by Milky Bar and Kit Kat. While surveying we

have found that many people are not aware of Milk Chocolate.

OVERALL PURCHASE OF CHOCOLATES

Table:7

OVERALL PURCHASE OF SUB- BRANDS OF CHOCOLATES

SUB-BRANDS PERCENTAGE OF PURCHASE
DAIRY MILK 13
5 STAR 12
PERK 11
CELEBRATIONS 9
TEMPTATIONS 7
KIT KAT 10
MUNCH 11
MILKY BAR 11
BAR ONE 9
MILK CHOCOLATE 7

45
From the above analysis it is concluded that overall Dairy Milk is purchased by

people followed by 5 Star while Temptation and Milk Chocolate is least

purchased by people.

PREFERENCE OF SUBRANDS OF CHOCOLATES

PREFERENCE OF SUBRANDS OF CADBURYCHOCOLATES

Table: 8

CADBURY CHOCOLATES
SUB- BRANDS GRAND TOTAL AVERAGE RANKS

OFPREFERENCE (GRAND TOTAL / No.

OF RESPONDANTS)
DAIRY MILK 315 4.3 1
5 STAR 220 3 2
PERK 176 2.4 3
46
CELEBRATIONS 136 1.86 4
TEMPTATION 91 1.24 5

According to the above analysis it is concluded that in Cadbury Brand, Dairy

milk is the most preferred sub-brand as it is ranked first by the respondents.

While Temptation is the least preferred sub-brand of Cadbury chocolates.

PREFERENCE OF SUB-BRANDS OF NESTLE CHOCOLATES

Table:9

NESTLE CHOCOLATES
SUB- BRANDS GRAND TOTAL AVERAGE RANKS

OFPREFERENCE (GRAND TOTAL / No.

OF RESPONDANTS)
KIT KAT 70 3.18 1
MUNCH 64 2.9 2
MILKY BAR 65 2.95 3
BAR-ONE 45 2.05 4
MILK 30 1.36 5

CHOCOLATE
According to the above analysis it is concluded that in Nestle Brand, Munch is

the most preferred sub-brand as it is ranked first by the respondents. While

Milk Chocolate is the least preferred sub-brand of Cadbury chocolates.

INFLUENCING FACTORS DURING PURCHASE

OVERALL INFLUENCE

47
 Table :10

FACTORS GRAND TOTAL AVERAGE RANK

FLAVOR/TASTE 435 4.58 1
PRICE 295 3.1 9
QUALITY 391 4.12 2
PACKAGING 344 3.62 4
FORM 301 3.13 7
BRAND 354 3.73 3
IMAGE 344 3.62 4
COLOR 297 3.13 8
SHAPE 268 2.82 10
QUANTITY 342 3.6 6

According to the above analysis it is concluded that on an average mostly people

are influenced by flavor/taste followed by quality, brand and image. It is

surprised to know that very few people are influenced by price followed by

shape of the chocolate.

INFLUENCING FACTORS DURING PURCHASE OF CADBURY

CHOCOLATES

Table:11

FACTORS GRAND TOTAL AVERAGE RANK

FLAVOR/TASTE 335 4.6 1
PRICE 235 3.2 7
QUALITY 307 4.2 2
PACKAGING 277 3.79 3
FORM 231 3.16 8
BRAND 271 3.71 4
IMAGE 262 3.59 5
COLOR 223 3.07 9
SHAPE 213 2.92 10
QUANTITY 262 3.59 5

48
According to the above analysis it is concluded that on an average mostly people

are influenced by flavor/taste followed by quality, packaging and brand. Here

color and shape are not all influencing people while purchasing Cadbury

chocolates.

INFLUENCING FACTORS DURING PURCHASE OF NESTLE

CHOCOLATES

Table:12

FACTORS GRAND TOTAL AVERAGE RANK

FLAVOR/TASTE 100 4.5 1
PRICE 60 2.72 5
QUALITY 84 3.82 2
PACKAGING 67 3.04 9
FORM 70 3.18 8
BRAND 83 3.77 3
IMAGE 82 3.73 4
COLOR 73 3.32 7
SHAPE 55 2.5 10
QUANTITY 80 3.64 6

According to the above analysis it is concluded that on an average mostly

people are influenced by flavor/taste followed by quality, brand and image.

Here packaging and shape are not all influencing people while purchasing

Nestle chocolates.

FACTORS GIVING MOST SATISFACTION TO CONSUMERS

OVERALL

49
Table:13

FACTORS GRAND TOTAL AVERAGE RANK

FLAVOR/TASTE 427 4.81 1
PRICE 337 3.6 4
QUALITY 367 386 2
PACKAGING 338 3.56 5
FORM 332 3.49 7
BRAND 358 3.77 3
IMAGE 328 3.45 9
COLOR 332 3.49 7
SHAPE 335 3.52 6
QUANTITY 328 3.45 9

According to the above analysis it is concluded that on an average people are

most satisfied with the flavor/taste of a chocolate followed by quality and

brand. It is surprising to know that although people are satisfied with quality but

unsatisfied with the quantity.

IN CADBURY CHOCOLATE

Table:14

FACTORS GRAND TOTAL AVERAGE RANK

FLAVOR/TASTE 334 4.6 1
PRICE 269 3.68 5
QUALITY 282 3.86 2
PACKAGING 272 3.73 4
FORM 264 3.62 6
BRAND 282 3.86 2
IMAGE 247 3.38 10
COLOR 259 3.55 7
SHAPE 258 3.53 8
QUANTITY 255 3.49 9

50
According to the above analysis it is concluded that on an average people are

most satisfied with the flavor/taste of a chocolate followed by quality and

brand. It is surprising to know that although people are satisfied with quality

but unsatisfied with the quantity and image.

IN NESTLE CHOCOLATE

Table:15

FACTORS GRAND TOTAL AVERAGE RANK

FLAVOR/TASTE 93 4.2 1
PRICE 68 3.09 8
QUALITY 85 3.86 2
PACKAGING 66 3 10
FORM 68 3.09 8
BRAND 76 3.45 5
IMAGE 81 3.68 3
COLOR 73 3.32 6
SHAPE 77 3.5 3
QUANTITY 73 3.32 4

According to the above analysis it is concluded that on an average people are

most satisfied with the flavor/taste of a chocolate followed by quality and

image. It is surprising to know that although people are satisfied with quality

but unsatisfied with the form and packaging.

51
 FORM PREFERENCE

Table:16

FORM OF CHOCOLATE NUMBER OF RESONDENTS

HARD 33
NUTTIES 21
CRUNCHY 23
CHEW 20 18

According to the above analysis it is concluded that most of the people likes to
eat hard chocolate and chew form of a chocolate is least preferred.

PACK OF CHOCOLATES PREFERED

52
 Table:17

PACK SIZE NUMBER OF RESPONDENTS

SMALL 28
BIG 48

FAMILY PACK 19

According to the above analysis it is concluded that out of sample of 95 people

who eat chocolates likes to buy big pack. Family pack is mostly preferred by

aged people only.

PROMOTIONAL OFFERS

Table:18

PROMOTIONAL OFFERS NUMBER OF RESPONDENTS

FREE GIFTS 52
PRICE OFFER 23
ANY OTHER 20

53
According to the above analysis it is concluded that out of sample of 95 people

who eat chocolate 52 are attracted by free gifts, 23 by price offers while 20

were attracted by some other reasons.

FACTORS AFFECTING PURCHASE

Table:19

FACTORS NUMBER OF RESPONDENTS

ADVERTISEMENT 55
SUGGESTION FROM FRIENDS 12

AND RELATIVES
ATTRACTIVE DISPLAY 5
DOCTORS ADVICE 7
BRAND AMBASSADORS 3
INGREDIENTS 13

54
According to the above analysis it is concluded that Advertisement is the best

measure to attract customers to purchase more. Its impact is much more than

other factors. While friends and relatives and brand ambassadors also play a

significant role in this regard.

MEDIA OF ADVERTISEMENT

Table:20

MEDIA OF ADVERTISEMENT NUMBER OF RESPONDENTS

TELEVISION 70
NEWSPAPERS 7
BROCHURES 3
HOARDING 4
DISPLAY 11

55
According to the above analysis it is concluded that television emerges as the

best media for advertisement of chocolates that compel consumers to buy. It is

much more than other ways as out of 95 respondents 82 are attracted to by

through television media while brochures are the least attracting media.

FREQUENCY OF CONSUMPTION

Table:21

FREQUENCY OF CONSUMPTION NUMBER OF RESPONDENTS

ONCE IN A FORTNIGHT 16
DAILY 17
WEEKLY 39
MONTHLY 18
QUARTERLY 5

56
According to the above analysis it is concluded that mostly people purchase

chocolates weekly. Only 15 out of 95 purchase chocolates quarterly.

REASONABLE PRICE

Table:22

PRICE OF CHOCOLATE NUMBER OF RESPONDENTS

BELOW 5 6
5-10 23
10-20 51
20-30 4
ABOVE 30 11

57
According to the above analysis it is concluded that the consumer thinks 10-20

Rs is the reasonable price of a chocolate. So it must be worthwhile to know this

as it may effect the sale of chocolates.

CONSUMER’S BRAND LOYALTY

Table:23

BRAND LOYALTY ACTIONS NUMBER OF RESPONDENTS

POSTPONE YOUR PURCHASE 26
SWITCH OVER TO OTHER 24

BRANDS
GO TO OTHER SHOP FOR 45

SEARCH

OF PREFERED BRAND

58
According to the above analysis it is concluded that mostly people are loyal to

the brand as in the absence of availability of their preferred brand mostly

people like to search for it or they are ready to postpone their purchase.

REACTION OF CONSUMERS IF NEW BRAND IS

INTRODUCED

Table:24

SHIFT TO NEW BRAND OF THE NUMBER OF RESPONDENTS

PREFERED PRODUCT
NO, NOT AT ALL 35
MAY CONSIDER 27
NO, SHALL NOT 4
CAN’T SAY 29

59
According to the above analysis it is concluded that mostly people are addicted

to the same flavor or taste and they don’t want to change it as out of 95

respondents 35 are not ready to try new brand at any cost.

60
REASONS FOR NOT SWITCHING OVER TO OTHER BRANDS

All the consumers why they continue to buy the old brand gave various

important reasons. The most important reasons given by the consumers were:

 Taste/Flavour

 Brand

 Image

 Quality

 Packaging

61
 FINDINGS

 CONSUMER RESEARCH:

Consumer research deals with consumer and their

problems and solution to the problems. In this I came to know

about the consumers need and expectation levels regarding products

and ascertainable levels of consumer satisfaction.

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.

62
 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 and crunchiness so they are going towards Kit Kat and Munch of

Nestle due to its . 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.

63
SUGGESTIONS AND RECOMMENDATIONS

 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.

64
 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.

65
 BIBLIOGRAPHY

WEBSITES :

 http://www.cadburyindia.com

 http://www.nestle.com

 http://www.chocolatereview.co.uk

 http://en.wikipedia.org/wiki/preference

 http://www.aphrodite-chocolates.co.uk/history_chocolate.htm

 http://www.google.com

 http://www.cadbury.co.nz/carnival/index.htm

BOOKS:

 Consumer behavior and culture: consequences for global

marketing and advertising

 Consumer behaviour: implications for marketing strategy

 Consumer behaviour in ASIA

66
 Chapter- 6

ANNEXURE
67
 QUESTIONNAIRE

PROJECT REPORT ON CONSUMER PREFERENCETOWARDS

NESTLE AND
CADBURY CHOCOLATES

Que1. Do you eat chocolate?

Yes
No
Que2. Which brand of chocolate do you prefer?
Cadbury
Nestle
68
 Que3. Which sub-brand you have purchased?
Cadbury Nestle
Dairy Milk Kit Kat
5Star Munch
Perk Milky Bar
Celebrations Bar-One
Temptation Milk Chocolate

Que4. Rank the sub-brands of chocolates according to your preference?

(1 for most preferred)
Cadbury Nestle
Dairy Milk Kit Kat
5Star Munch
Perk Milky Bar
Celebrations Bar-One
Temptation Milk Chocolate
Que5. How much importance do you give to the following factors when
you purchase a chocolate? (Tick in the desired column)
Factors Very Important Normal Least None
Important Important
Flavor/taste
Price
Quality
Packaging
Form
Brand
Image

Que6. How much are you satisfied with the following factors in your
preferred chocolate? (Tick in the desired column)

69
 Factors highly satisfied Normal dissatisfied highly
satisfied dissatisfied
Flavor/taste
Price
Quality
Packaging
Form
Brand
Image

Que7. Which form of a chocolate do you like?

Hard Nutties
Crunchy Chew

Que8. What pack do you purchase?

Small Big Family Pack

Que9. Which promotional offers attract you most?

Free gifts
Price Offer
Any other
Que10.Which of these factors affect your purchase?
• Advertisement

• Suggestion from friends and relatives

• Attractive Display

• Doctors Advice

• Brand Ambassadors

• Ingredients

Que11. Which media of advertisement influence your purchase?

70
 Television
Newspapers
Brochures
Hoarding
Display
Que12. How frequently do you purchase chocolates?
Daily
Weekly
Monthly
Quarterly

Que13. What according to you is the reasonable price of chocolate?

Below5
5-10
10-20
20-30
Above 30
Que14. If your preferred brand is not available in the market then what will
you do?
• Postpone your purchase

• Switch over to other brand

• Go to the other shop to search for your preferred brand

Que15. If another brand of the same product appears in the market, will
you prefer to stop buying this brand and buy the new brand?
No, not at all I may consider
No, I shall not can’t say

71
Que16. If you don’t like to change to the new brand, then what are the
reasons for continuing to purchase the old brand?
.....................................................................................................................
.....................................................................................................................
PERSONAL DETAILS
Name:
Address:
Age:
Between 0-10 Between10-20
Between 20-30 Above 30

Gender:
Phone Number:
Marital status:
Education:
Profession:

THANKS

72