cadbury-and-nestle study

“A STUDY ON CONSUMER
PREFERENCE TOWARDS CADBURY AND NESTLE CHOCOLATES
IN BHUBANESWAR CITY”

A PROJECT REPORT SUBMITTED IN PARTIAL FULLFILLMENT OF THE
REQUIREMENTS FOR THE DEGREE OF POST GRADUATE DIPLOMA IN
MANAGEMENT

BY-
PRASHANT JAIN
PGDM (IB) 2008-10

INDIAN INSTITUTE OF TOURISM AND TRAVEL MANAGEMENT
BHUBANESWAR (ORISSA)

GUIDE
Prof. PRIYA KAMBLE
INDIAN INSTITUE OF TOURISM AND TRAVEL
MANAGEMENT BHUBANESWAR-751009

Indian Institute Of Tourism & Travel Management, Bhubaneswar

EVALUATION CERTIFICATE

This is to certify that the undersigned have assessed and evaluated the research
project “A STUDY ON CONSUMER PREFERENCE TOWARDS CADBURY AND
NESTLE CHOCOLATES IN BHUBANESWAR CITY” submitted by PRASHANT
JAIN. The project has been accepted for the partial fulfillment of the degree of
post graduate diploma in Management .

Internal Examiner External Examiner

Signature Signature
Name Name

Date Date


DECLARATION BY THE STUDENTS

We hereby declare that this Project Report titled “A STUDY ON CONSUMER
PREFERENCE TOWARDS CADBURY AND NESTLE CHOCOLATES IN
BHUBANESWAR CITY” submitted by us is based on actual work carried out by me
under the guidance and supervision of Prof. Priya Kamble. Any reference to work
done by any other person or institution or any material obtained from other sources
have been duly cited and referenced. It is further to state that this work is not
submitted anywhere else for any examination.


CERTIFICATE

This is to certify that Mr. prashant jain ,Semester IV PGDM (IB) has
completed the specified work in the subject of Research Methods in
Business in satisfactorily manner within this institute during the
academic year 2008 – 2010.


ACKNOWLEDGEMENT

Every piece of hard work requires the combined efforts and talents of many
people. An ambitious work of this kind, providing analytical review to the subject
would have remained a concept rather than the finished product without
cooperation of those who respondent to our request to contribute. However, we
all are responsible for any shortcomings remained in this report.

We are very much graceful to our respected Prof. Dr. Adyasha Das of INDIAN
INSTITUTE OFTOURISM AND TRAVEL MANAGEMENT, who has enriched my
knowledge and gave us a moral support to do this report. We are also highly thankful
to her for showing the right path and encouraging us for the preparation of this report.

We are very much thankful to Mr. S N Biswas and those people who give us their
valuable time and related information about Nestle and Cadbury Chocolate.

Last but not the least I am grateful to my heartfelt love for my parents, my elder

brother Er. ASHWANI JAIN and my friends whose constant support and

blessings helped me throughout this project.


Preface

The main objective of this project study is to help the students to develop ability
of research of the products and practical technique to solve real life problem
related to the products.

In this grand project report i have tried to analyze the needs of the customers and
suggest them the most suitable product solutions, as well as i have also analyzed
the brand awareness among the people.


INDEX


SR. NO. CONTENTS

PAGE NO.

1 INDUSTRY OVERVIEW 1-13

2 OVERVIEW OF ORGANIZATION 14-27

6
NIRANJANA MAJITHIA DEGREE COLLEGE OF COMMERCE


3 RESEARCH METHODOLOGY 28-44

4 FINDINGS 45-47

5 SUGGESTIONS 48-49

6 CONCLUSION 50-51

7 REFERENCE 52-53

8 APPENDIX 54-58


INTRODUCTION
INTRODUCTION

In this research we have surveyed 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 “BHUBANESWAR”. 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.


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.

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 our 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 our study is also restricts itself to Mumbai region only.

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 fulfilling the 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.


Chocolate


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

Chocolate

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,
11


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!

Indian Institute Of Tourism & Travel Management,
Bhubaneswar

12

Bhubaneswar

Industry Overview
INDUSTRY OVERVIEW

History of chocolate:
The origin of chocolate can be traced back to the ancient Maya and Aztec
civilizations in Central America, who first enjoyed “chocolaty” a 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 chili water, aromatic flowers, vanilla and wild bee honey.
The dry climate meant the Aztecs were unable to grow cocoa trees, and had to
obtain supplies of cocoa beans from “tribute” or trade

Don Cortes
th
The Spanish invaded Mexico in the 16 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- 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 xocolat, 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
xocolat: “the divine drink, which builds up resistance and fights fatigue. A cup of this
precious drink permits a man to walk for a whole day without food”


Chocolate in Europe
Xocolat or chocolat or chocolate as it became known, was brought to Europe by Cortez,
by this time the conquistadors had learned to make the drink more palatable to
European tastes by mixing the ground roasted beans with sugar and vanilla ( a practice
still continued today), thus offsetting the spicy bitterness of the brew the 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
th
17 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, and Germany and – in about 1520 – it arrived in England.

The first chocolate house in England opened in London in 1657 followed rapidly
by many others. Like the already well established coffee houses, they were used
as clubs where the wealthy and business community met to smoke a clay pipe of
tobacco, conduct business and socialize over a cup of chocolate.


Back to the America’s
Events 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 world’s 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.
It’s 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.

HOW CADBORY CHOCOLATE IS MADE

The cocoa-bean -- the heart of the sweetest delicacy in the world -- is bitter!
This is why, up to the 18th century some native tribes ate only the sweetish
flesh of the cocoa fruit. They regarded the precious bean as waste or used it,
as was the case among the Aztecs, as a form of currency.

The Varieties
There are two quite different basic classifications of cocoa, under which
practically all varieties can be categorized: Criollo and Forastero cocoas.
The pure variety of the Criollo tree is found mainly in its native Equador

and Venezuela. The seeds are of finer quality than those of the Forastero variety.
They have a particularly fine, mild aroma and are, therefore, used only in the
production of high-quality chocolate and for blending. However, Criollo cocoa


accounts for only 10% of the world crop. The remaining 90% is harvested from trees
of the Forastero family, with its many hybrids and varieties. The main growing area is
West Africa. The cocoa tree can flourish only in the hottest regions of the world.

The Harvest Immediately after harvesting, the fruit is treated to
prevent it from rotting. At fermentation sites either in the plantation
or at, collecting points, the fruit is opened.
Fermentation
The fermentation process is decisive in the production of high quality raw cocoa.
The technique varies depending on the growing region.


Drying
After fermentation, the raw cocoa still contains far too much water; in fact about
60%. Most of this has to be removed.
What could be more natural than to spread the beans out to dry on the sun-soaked ground
or on mats? After a week or so, all but a small percentage of the water has evaporated.

Cleaning
Before the real processing begins, the raw cocoa is thoroughly
cleaned by passing through sieves, and by brushing. Finally, the
last vestiges of wood, jute fibres, sand and even the finest dust are
extracted by powerful vacuum equipment.
Roasting
The subsequent roasting process is primarily designed to develop the aroma.
The entire roasting process, during which the air in the nearly 10 feet high
furnaces reaches a temperature of 130 °C, is carried out automatically.
Crushing and shelling
The roasted beans are now broken into medium sized pieces in the crushing machine.
Blending
Before grinding, the crushed beans are weighed and blended according to
special recipes. The secret of every chocolate factory lies in the special mixing
ratios, which it has developed for different types of cocoa.
Grinding
The crushed cocoa beans, which are still fairly coarse are now pre-ground by special
milling equipment and then fed on to rollers where they are ground into a fine paste. The
heat generated by the resulting pressure and friction causes the cocoa butter


(approximately 50% of the bean) contained in the beans to melt, producing a
thick, liquid mixture.
This is dark brown in color with a characteristic, strong odour. During cooling it
gradually sets: this is the cocoa paste.
At this point the production process divides into two paths, but which soon join again.
A part of the cocoa paste is taken to large presses, which extract the cocoa butter.
The other part passes through various blending and refining processes, during which
some of the cocoa butter is added to it. The two paths have rejoined.
CocoaButter
The cocoa butter has important functions. It not only forms part of
every recipe, but it also later gives the chocolate its fine structure,
beautiful lustre and delicate, attractive glaze.
Cocoa Powder
After the cocoa butter has left the press; cocoa cakes are left which still contain a
10 to 20% proportion of fat depending on the intensity of compression.
These cakes are crushed again, ground to powder and finely sifted in
several stages and we obtain a dark, strongly aromatic powder, which is
excellent for the preparation of delicious drinks - cocoa. Cocoa paste,
cocoa butter, sugar and milk are the four basic ingredients for making
chocolate. By blending them in accordance with specific recipes the three types of
chocolate are obtained which form the basis of ever product assortment, namely:
Kneading
In the case of milk chocolate for example, the cocoa paste, cocoa butter,
powdered or condensed milk, sugar and flavouring - maybe vanilla - go into the
mixer, where they are pulverized and kneaded.
Rolling
Depending on the design of the rolling mills, three or five vertically


mounted 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 millimeter.)


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

CONSUMPTION OF CHOCOLATES IN INDIA

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


Overview
Of
Organizations

Bhubaneswar

Bhubaneswar

OVERVIEW OF ORGANIZATIONS

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.


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 people
throughout their lives, throughout the world.

Nestle’ Brands


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


MILK PRODUCTS AND NUTRITION:

NESTLE EVERYDAY Dairy Winter

NESTLE EVERYDAY Slim

NESTLE’S EVERTDAY Ghee

NESTLE’S MILK MAID

NESTLE’S Fresh and Natural Dahi

NESTLE’S Jeera Raita

NESTLE’S MILKMAID Fruit Yoghurt

NESTLÉ Milk

NESTLÉ Slim Milk

BEVERAGES:

NESCAFÉ CLASSIC

NESCAFÉ SUNRISE

NESTLÉ MILO


NESCAFÉ 3 IN 1

NESCAFÉ KOOLREZ


PREPARED DISHES AND COOKING AIDS

MAGGI 2-MINUTE NOODELS

MAGGI VEGETABLE ATTA NOODELS

MAGGI DAL ATTA NOODELS

MAGGI RICE NOODELS MAIN

MAGGI SAUCES

MAGGI PIZZA MAZZA

MAGGI HEALTHY SOUPS

MAGGI -HEALTHY SOUPS SANJEEVNI

MAGGI MAGIC CUBES

CHOCOLATES & CONFECTIONARY

NESTLÉ KIT KAT

NESTLÉ KIT KAT LITE

NESTLÉ MUNCH


NESTLÉ MUNCH POP CHOC

NESTLÉ MILKY BAR


NESTLÉ BAR- ONE

NESTLÉ FUNBAR

NESTLÉ MILK CHOCOLATE

POLO POWER MINT

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

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!


CADBURY

Process of Manufacturing Cadbury Chocolate:

John Cadbury

Milk chocolate for eating was first made by Cadbury in 1897 by adding milk
powder John paste to the dark chocolate recipe of cocoa mass, cocoa butter and
sugar. By today's standards this chocolate was not particularly good: it was
coarse and dry and not sweet or milky enough for public tastes.
There was a great deal of competition from continental manufacturers, not only the

French, but also the Swiss, renowned for their milk chocolate.
Led by George Cadbury Junior, the Bourneville experts set out to meet the
challenge. A considerable amount of time and money was spent on research and
on new plant designed to produce the chocolate in larger quantities.
A recipe was formulated incorporating fresh milk, and production processes were
developed to produce a milk chocolate 'not merely as good as, but better than' the
imported milk chocolate'.
Four years of hard work were invested in the project and in
1905 what was to be Cadbury's top selling brand was launched.
Three names were considered: Jersey, Highland Milk and Dairy Maid. Dairy Maid
became Dairy Milk, and Cadbury's Dairy Milk, with its unique flavour and smooth
creamy texture, was ready to challenge the Swiss domination


of the milk chocolate market.
By 1913 Dairy Milk had become the company's best selling line and in the mid
twenties Cadbury's Dairy Milk gained its status as the brand leader, a position it
has held ever since.


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. Byte 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 stretching back over 200 years, today their products - which
include brands such as Cadbury, Schweppes, Halls, Trident, Dr
Pepper, Snapple, Trebor, Dentyne, Bubblicious and Bassett - are enjoyed in almost every

country around the world. We employ around 60,000 people.

Their heritage starts back in 1783 when Jacob Schweppes
perfected his process for manufacturing carbonated mineral
water in Geneva, Switzerland. And in 1824 John Cadbury
opened in Birmingham selling cocoa and chocolate.
These two great household names merged in 1969 to form Cadbury Schweppes
plc. Since then they have expanded their business throughout the world by a
programme of organic and acquisition led growth.
Concentrating on their core brands in beverages and confectionery since the
1980s, they have strengthened their portfolio through almost fifty acquisitions,
including brand icons such as Mott's, Canada Dry, Halls, Trident, Dentyne,
Bubblicious, Trebor, Bassett, Dr Pepper, 7 Up and Snapple.
- It employs 60,000 people in over 200 countries


- Worlds No 1 Confectionery company
- World's No 2 Gums company
- World's No 3 beverage company


Cadbury Brands:
Chocolates
Snacks
Beverages
Candy

SNACKS
Bytes

BEVERAGES
Bournvita

CANDY
Halls

CHOCOLATES
Dairy Milk
5 Star
Perk
Celebrations
Temptation
Éclairs
Gems

DAIRY MILK

The story of Cadbury Dairy Milk started way back in 1905 at Bourneville, U.K.,
but the journey with chocolate lovers in India began in 1948.
The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of


Cadbury Dairy Milk with a variety of ingredients and are very popular amongst
teens & adults.
Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie,
chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a
delightful combination of milk chocolate and white chocolate. Giving consumers
an exciting reason to keep coming back into the fun filled world of Cadbury.
Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market


.

5 STAR

The second largest after Cadbury Dairy Milk with a market share of 14%, Cadbury 5
Star moves from strength to strength every year by increasing its user base.
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

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


Ever see people hide away their chocolate since they don’t want to share

it! If you have, then it’s likely to be a bar of Cadbury Temptations!

Cadbury Temptations is a range of delicious premium chocolate in five

flavours.

Research revealed a niche segment of “chocoholics” - those exposed to

international chocolates and those who love a variety of chocolates but

possibly find the price of international chocolates too high. Cadbury

Temptations is a range targeted at this segment of discerning chocolate

lovers.

The Cadbury Temptations range is available in 5 delicious flavour variants

- Roast Almond Coffee, Honey Apricot, Mint Crunch, Black Forest and Old

Jamaica. With its international quality chocolate Temptations soon became a

popular brand for "chocoholics".


RESEARCH
METHODOLOGY


RESEARCH METHODOLOGY

SR. NO. PARTICULARS

1 RELEVANCE OF STUDY

2 RESEARCH PROBLEM

3 RESEARCH OBJECTIVE

4 RESEARCH DESIGN

5 SCOPE OF THE STUDY

6 DATA COLLECTION
• SAMPLING DESIGN
• INSTRUMENT
• MODE OF DATA COLLECTION
7 LIMITATION OF STUDY

8 DATA ANALYSIS


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 elected, we went to the residents of peoples and collected the data.

1. Relevance of the Study
This research is been conducted to survey the product performance and buying
behavior of consumer in selection of chocolates.
The relevance of the study is to 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 we have interacted with
people of Mumbai City. This research is to know which particular brand of
chocolate is most preferred by people of different age groups.

2. Research Problem
Every research has their own problem and limitation but good researcher have to
overcome that problem by their skill.

In this research problem we would like to understand and analyze about the chocolates

products available at Mumbai and collect the feedback from group of people and we

wanted to know the developments made in direction of chocolates industry.

3. Research Objective


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
fulfilling the customer needs.
f To study the factors affecting the consumption pattern.

5. Research Design
For any researcher the research methodology is the most important criteria to
decide before the actual research process starts.

There are many methods for conducting the research some of them are as under;

a) Descriptive vs. Analytical b) Applied vs. Fundamental c) Quantitative vs. Qualitative d)
Conceptual vs. Empirical e) Field setting or laboratory testing research The design of a
research is a plan or a model that helps researcher to conduct a formal investigation and
survey. It is an application of methods and procedures for acquiring the information
needs for getting a desire out come. It decides the sources of data and methods for
gathering data. A good design insures that the information obtained is relevant to the
research question and that it was collected by objectives. Since, research design is
simply the frame work or plan for a study. It is a blue print that of a house devised by an
architect. Our approach to research is descriptive and quite specific.

Out of these all research methods the research method, which was most suitable
to our research, was descriptive research because it provides us all the
opportunities to cover the all the aspect that We require to conduct the research
and get an appropriate out come.

Descriptive Research:
Descriptive research includes surveys and fact – finding enquires of different
kinds. The major purpose of descriptive research is description of the state of


affairs as it exits at present. In social science and business research we often
use the term Ex post facto research for descriptive research studies. The main
characteristic of this method is that the researcher has no control over the
variables; he can only report what has happened or what is happening.


5. 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 our study is limited to two major players of chocolates leaving
behind the others. The scope of my study is also restricts itself to Mumbai region only.

There are 2 sources of data i.e.

A) Primary Data
The data, which are collected for the first time, directly from the respondents to
the base of knowledge & belief of the research, are called primary data.
The normal procedure is to interview some people individually or in a group to
get a sense of how people feel about the topic.
So far as this research is concerned, primary data is the main source of
information provided by the respondents.

B) Secondary Data


When the data is collected and compiled in the in a published nature it is called
Secondary data.
So far as this research is concerned internet, many brochures and magazines
have been referred too.


5. DATA COLLECTION
a) SAMPLING DESIGN
It is true that it is very difficult to do research with whole universe. As we know
that it is not feasible to go with population survey because of the numerous
Doctors and their scattered location. So for this purpose sample size has to be
determined well in advanced and selection of the sample also has to be scientific
so that it represents the whole universe.
So far as this research is concerned, the sample size is 100.

b) INSTRUMENT
Taking into consideration research instrument selected by us is questionnaire
because it gives more flexibility in terms of data and it has been asked to the
responder personally and has an idea of getting an important unknown data that
can be collected through their behavior.

c) MODE OF DATA COLLECTION
Data collection mode is personal visit and filling up of the questionnaire.

6. LIMITATION OF 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:
d 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.
s 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.
P The chance of biased response can’t be eliminated though all necessary
steps were taken to avoid the same.


DATA ANALYSIS

Que1. Do you eat chocolate?

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.


Que2. Which brand of chocolate do you prefer?

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.


Que3. Which sub-brand you have purchased?

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.


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

CADBURY

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.


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

Whenever we are consuming any food product our main focus in on the quality and price
in India there is more concentrating on the quality of product rather than other
parameters of the product in this survey I found that the basic concentration of the
consumer is on taste 88% says that they purchase if they like the taste of the product.
96% says if normal price would be there a taste is good than price dose not matter. 78%


of the consumer says that if they are getting best quality product at nominal price than
the packaging is least important. 78% says that they are mainly seeing the quality of the
product if the product is qualitative than they are ready to pay any price for that product.


Que6. Which form of a chocolate do you like?

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.


Que7. What pack do you purchase?

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.


Que8. Which promotional offers attract you most?

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.


Que9.Which of these factors affects your purchase?

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.


Que10. Which media of advertisement influence your purchase?

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


Que11. If your preferred brand is not available for repeat purchases then
what will you do?

Every person is having there own taste & preferences. Some consumer are
compromising with there taste and preferences and some are not according to
the survey 11% of the consumer are postponing the purchase of the product, 40
% of the consumer are switch over to any other product, & 49 % will search the
product at any other place they don’t compromise for the same.


Findings

Bhubaneswar

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
me is purely based on my research. It doesn’t have any kind of bias from my side.


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.


Suggestions
And
Recommendations


SUGGESTIONS AND RECOMMENDATIONS

Chocolates products at Bhubaneswar 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.


Conclusion

Bhubaneswar

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.


References

Bhubaneswar

REFERENCES

Web sites:

W www.nestle.in
www.business-standard.com
www.cadburyindia.com
www.scribd.com
www.managementparadise.com
www.google.com

Books:

1. Marketing Management
- Philip Kotler

2. Research Methodology

- C. R. Kothari


Appendix

Bhubaneswar

“A STUDY OF CONSUMER PREFERENCE TOWARDS CADBURY AND NESTLE
CHOCOLATES IN BHUBANESWAR CITY”
QUESTIONNAIRE
(Please tick wherever necessary)
1. Personal Profile:-

Name :
Address :
Age :
Between 0-10 Between10-20
Between 20-30 Above 30

Gender : Male Female
Educational Qualification:
Profession :

Que1. Do you eat chocolate?
Yes No

Que2. Which brand of chocolate do you prefer?
Cadbury Nestle

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
Important Important
Flavor/taste
Price
Quality
Packaging

Que6. Which form of a chocolate do you like?

Hard Nutties
Crunchy Chew

Que7. What pack do you purchase?


Small Big Family Pack


Que8. Which promotional offers attract you most?

Free gifts Price Offer Any other: _______________

Que9.Which of these factors affects your purchase?

Q Advertisement
A Suggestion from friends and relatives
S Attractive Display
A Doctors Advice
D Brand Ambassadors
B Ingredients

Que10. Which media of advertisement influence your purchase?

Television Newspapers Brochures
Hoarding Display

Que11. If your preferred brand is not available for repeat purchases then what
will you do?
w Postpone your purchase
P Switch over to other brand
S Go to the other shop to search for your preferred brand


Que12. Do you feel that the product characteristics match with those mentioned
in the advertisement?
Yes
No


Que13. Are you influenced by advertisements to buy or change a particular
brand of chocolate?
Yes
No

Que14. Any Suggestions if you want to give us:
________________________________________________________________________
________________________________________________________________________


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