Dissertation Project Report on Nestle & Cadbury Chocolates
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Transcript of Dissertation Project Report on Nestle & Cadbury Chocolates
Dissertation Project Report
on(Study of Consumer Behavior towards
Cadbury & Nestle Chocolates)
Submitted by : TAMAL MANNA
Batch No : 25
Enroll. No : 251091131
Session : 2009-2011
Submitted On : 19th February, 2011
A report submitted in partial fulfillment for
the requirement of
2 Year Full Time Masters in Business Administration&
(MBA+PGPM)
From
Institute of Management & Development
New Delhi
DECLARATION
I, Tamal Manna, bearing Enrollment No. 251091131 a student of Institute of
Management & Development, New Delhi affiliated to PTU, pursuing Masters
in Business Administration. Hereby, declare that the project report entitled
“STUDY OF CONSUMER BEHAVIOR TOWRDS NESTLE & CADBURY
CHOCOLATES” submitted is my original work and the project report has not
formed the basis for the award of any diploma, degree, associate ship,
fellowship or similar other titles. It has not been submitted to any other
university or institution for the award of any degree or diploma.
Date: Tamal Manna
Place: MBA – IV
Semester.
ACKNOWLEDGEMENT
Survey is an excellent tool for learning & exploration. No classroom routine
can substitute which is possible while working in real situations.
Application of theoretical knowledge to practical situations is the bonanzas
of this survey.
Without a proper combination of inspection & perspiration, its not easy to
achieve to anything. There is always a sense of gratitude, which we express
to others for the help & needy services they render during the different
phases of our lives. I really wish to express my gratitude towards all those
who have been helpful to me directly or indirectly during the development
of this project.
I would like to thank my professors Renu Sharma & Arvind Arora, who was
always there to help and guide me whenever I needed help. Their
perspective criticism I am thankful to them for their encouraging and
valuable support. Working under them was an extremely knowledgeable
and enriching experience for me. I am very thankful to them for all the
value addition and enhancement done to me.
No words can adequately express my overriding debt of gratitude to my
parents whose support helps me in all the way.
Tamal Manna
TABLE OF CONTENTS
1. Introduction.
2. Consumer preference.
3. Scope of the study.
4. Objective of the study.
5. Limitation of study.
6. History of chocolates.
7. Chocolate production.
8. Consumption of chocolate in India.
9. Nestlé’s profile.
10. Cadbury’s profile.
11. Basis of Research & Design.
12. Analysis of data findings.
13. Conclusion.
14. Suggestions & recommendations.
LIST OF TABLES
TABL
E
NO.
TITLES
1. Liking for the chocolates.
2. Different age groups.
3. Preference according to age groups.
4. Brand preference.
5. Purchase of Cadbury chocolates.
6. Purchase of Nestle chocolates.
7. Overall purchase of chocolates.
8. Preference of sub brands of Cadbury Chocolates.
9. Preference of sub brands of Nestle Chocolates.
10. Influencing factors during purchase of Cadbury Chocolates.
11. Influencing factors during purchase of Nestle Chocolates.
12. Factors giving most satisfaction to consumers in Cadbury chocolates.
13. Factors giving most satisfaction to consumers in Nestle chocolates.
14. Form preference.
15. Pack of chocolates preferred.
16. Promotional offers.
17. Factors affecting purchase.
18. Media of advertisement.
19. Frequency of consumption.
20. Reasonable price.
21. Consumers brand loyalty.
22. Reaction of consumer if new brand is introduced
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 “Delhi & Kolkata”. After this research I came to know how
people perceives these products on the variables like price, quality,
advertisement, satisfaction, taste, packaging, brand loyalty etc. I also came
to know which particular brand of chocolate is most preferred by people of
different age groups. In this research I have surveyed that how frequently
and how much chocolate they consume, whether they buy small, big or
family pack. Trend of ongoing changes in their likings has been shown in
the report. In this report I have tried to explain the entire research and
facts product wise.
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.
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.. 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.
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.
Chocolates
Chocolates! Chocolates!
Every body has a liking for them, be they in the form of bar
Or a tiny little gem,
Or shaped like a rectangle,
Or a sphere, a brick or an éclair.
For chocolate lovers it is fun,
To have them during rain, breeze or sun.
They are white and brown in color,
And taste sweet and bitter.
Some have them in a glass of cold coffee, or in the form of a toffee.
Some eat them when they are sad.
Some relish them when they are happy or have sweet dreams,
But I feel, to have chocolates.
We don’t need a reason,
‘Cause we can have it.
Anytime, any season!
History of Chocolates
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 chili water, aromatic flowers, vanilla and wild
bee honey. The dry climate meant the Aztecs were unable to grow cocoa
trees, and had to obtain supplies of cocoa beans from “ tribute” or trade
Don Cortes
The Spanish invaded Mexico in the 16th century, by this time the Aztecs
had created a powerful empire, and the Spanish armies conquered Mexico.
Don Cortes was made captain general and governor of Mexico. When he
returned to Spain in1528 he loaded his galleons with cocoa beans and
equipment for making the chocolate drink. Soon “chocolate” became a
fashionable drink enjoyed by the rich in Spain.
Chocolate across Europe
An Italian traveler, Francesco carletti, was the first to break the Spanish
monopoly. He had visited Central America and seen how the Indians
prepared the cocoa beans and how they made the drink, and by 1606
chocolate was well established in Italy.
Drinking chocolate
The secret of chocolate was taken to France in 1615, when Anne, daughter
of Phillip 2 of Spain married king Louis 13 of France The French court
enthusiastically adopted this new exotic drink, which was considered to
have medicinal benefits as well as being a nourishing food.
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
“ the obroma 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.
Chocolate in EuropeXocolatl! 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.
If only they had known, chocolate was so expensive at that time, that it was
worth it’s weight in silver ( if not gold), chocolate was treasure indeed !
Within a few years, the cocoa beverage made from the powder produced in
Spain had become popular throughout Europe, in the Spanish Netherlands,
Italy, France, Germany and – in about 1520 – it arrived in England. The first
chocolate house in England opened in London in 1657 followed rapidly by
many others.
Back to the America’s
Event’s went full circle when English colonists carried chocolate (and
coffee) with them to England’s colonies in north America. Destined to
become the united states of America and Canada, they are now the worlds
largest consumers – by far – of both chocolate and coffee, consuming over
half of the words total production of chocolate alone.
The Quakers
The Quakers were, and still are, a pacifist religious sect, an offshoot of the
puritans of English civil war and pilgrim fathers fame and a history of
chocolate would not be complete without mentioning their part in it. Some
of the most famous names in chocolate were Quakers, who for centuries
held a virtual monopoly of chocolate making in the English speaking world –
fry, Cadbury and row tree are probably the best known.
Its probably before the time of the English civil war between parliament
and king Charles 1st that the Quaker’s who evolved from the puritans, first
began their historic association with chocolate. Because of their pacifist
religion, they were prohibited from many normal business activities, so as
an industrious people with a strong belief in the work ethic (like the
puritans), they involved themselves in food related businesses and did very
well. Baking was a common occupation for them because bread was
regarded as the biblical “staff of life”, and bakers in England were the first
to add chocolate to cakes so it would be a natural progression for them to
start making pure chocolate.
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.
Chocolate production – Procedure
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 VarietiesThere 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 HarvestImmediately 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.
FermentationThe fermentation process is decisive in the production of high quality raw
cocoa. The technique varies depending on the growing region.
DryingAfter 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.
RoastingThe 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 shellingThe roasted beans are now broken into medium sized
pieces in the crushing machine.
BlendingBefore 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.
GrindingThe 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 colour 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.
Cocoa ButterThe 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 PowderAfter 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 –
KneadingIn the case of milk chocolate for example, the cocoa paste,
cocoa butter, powdered or condensed milk, sugar and
flavoring - maybe vanilla - go into the mixer, where they are
pulverized and kneaded.
RollingDepending on the design of the rolling mills, three or five vertically
mounted steel rollers rotate in opposite directions. Under heavy pressure
they pulverize the tiny particles of cocoa and sugar down to a size of
approx. 30 microns. (One micron is a thousandth part of a millimeter.)
ConchingBut 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.
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.
Nestle India
Nestlé India is a subsidiary of Nestlé S.A. of Switzerland. With seven
factories and a large number of co-packers, Nestlé India is a vibrant
Company that provides consumers in India with products of global
standards and is committed to long-term sustainable growth and
shareholder satisfaction.
Nestlé India has presence across India with 7 manufacturing facilities and 4
branch offices spread across the region.
Nestlé India’s first production facility, set up in 1961 at Moga (Punjab), was
followed soon after by its second plant, set up at Choladi (Tamil Nadu), in
1967. Consequently, Nestlé India set up factories in Nanjangud
(Karnataka), in 1989, and Samalkha (Haryana), in 1993. This was succeeded
by the commissioning of two more factories - at Ponda and Bicholim, Goa,
in 1995 and 1997 respectively. The seventh factory was set up at
Pantnagar, Uttarakhand, in 2006.
The 4 branch offices in the country help facilitate the sales and marketing
of its products. They are in Delhi, Mumbai, Chennai and Kolkata. The Nestlé
India head office is located in Gurgaon, Haryana.
Nestlé’s 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 .
Beverages.
Prepared Dishes & Cooking Aids.
Chocolates & Confectionery
Milk Products & Nutrition.
Nestle Everyday Dairy Whitener.
Nestle Everyday Ghee.
Nestle Milk.
Nestle Slim Milk.
Nestle NESVITA Pro-Heart Milk.
Nestle Fresh ‘n’ Natural Dahi.
Nestle Fresh ‘n’ Natural Slim Dahi.
Nestle Jeera Raita.
Nestle NESVITA Dahi.
Nestle Milkmaid fruit yoghurt.
Nestle Milkmaid.
Nestle Dahi.
Nestle Neslac.
Beverages.
Nescafe Classic.
Nescafe Sunrise Premium.
Nescafe Premium.
Nescafe Cappuccino.
Nescafe Iced Tea with Green Tea.
Nescafe Iced tea.
Nescafe 3 in 1.
Prepared Dishes & Cooking Aids
Maggi 2- Minute Noodles.
Maggi Vegetable Atta Noodles.
Maggi Cuppa Mania.
Maggi Healthy soups.
Maggi sauces.
Maggi Pichkoo.
Maggi Pizza Mazaa.
Maggi magic cubes.
Maggi Sanjeevni cup soup.
Maggi Coconut milk powder.
Chocolates & Confectionery
Nestle Kitkat.
Nestle Kitkat chunky.
Nestle Munch.
Nestle Munch Pop Choc.
Nestle Milky bar.
Nestle Milky bar Choo.
Nestle Bar One.
Nestle Milk Chocolate.
POLO.
Nestle Eclairs.
Nestle Milky bar Eclairs.
Nestle Kit Kat
It is a crisp wafer fingers covered with chocolayer. Nestle Kit Kat has a
unique finger format with breaking ritual attached to it.
Nestle Kit Kat is one of the most successful brands in the world & every year
over 12 billion Kit Kat are consumed throughout the world.
Nestle Munch
NESTLÉ MUNCH is wafer layer covered with delicious choco layer. It is
so crispy, 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. Re-
launched 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'.
NESTLÉ Milk Chocolate is a milk chocolate with a delicious taste. Kids
just love it!
Cadbury
How Cadbury Chocolate is made
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’s Overview of Cadbury India
Cadbury began its operations in 1948 by importing chocolates and then re-
packing them before distribution in the Indian market. After 59 years of
existence, it today has five company-owned manufacturing facilities at
Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi
(Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and
Chennai).The corporate office is in Mumbai.
Currently Cadbury India operates in three sectors viz. Chocolate
Confectionery, Milk Food Drinks and in the Candy category.In the Chocolate
Confectionery business, Cadbury has maintained its undisputed leadership
over the years. Some of the key brands are Cadbury Dairy Milk, 5 Star,
Perk, Éclairs and Celebrations. Cadbury enjoys a value market share of over
70% the highest Cadbury brand share in the world! Their flagship brand
Cadbury Dairy Milk is considered the "gold standard" for chocolates in
India. The pure taste of CDM defines the chocolate taste for the Indian
consumer.
In the Milk Food drinks segment their main product is Bournvita - the
leading Malted Food Drink (MFD) in the country. Similarly in the medicated
candy category Halls is the undisputed leader.The Cadbury India Brand
Strategy has received consistent support through simple but imaginative
extensions to product categories and distribution. A good example of this is
the development of Bytes.
Crispy wafers filled with coca cream in the form of a bagged snack, Bytes is
positioned as "The new concept of sweet snacking". It delivers the taste of
chocolate in the form of a light snack, and thus heralds the entry of
Cadbury India into the growing bagged Snack Market, which has been
dominated until now by Salted Bagged Snack Brands. Bytes was first
launched in South India in 2003.
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 Worldwide
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 60,00people.
Their heritage starts back in 1783 when Jacob Schweppe perfected his
process for manufacturing carbonated mineral water in Geneva,
Switzerland. And in 1824 John Cadbury opened in Birmingham selling cocoa
and chocolate. These two great household names merged in 1969 to form
Cadbury Schweppes plc.
Since then they have expanded their business throughout the world by a
programme of organic and acquisition led growth.
Concentrating on their core brands in beverages and confectionery since
the 1980s, they have strengthened their portfolio through almost fifty
acquisitions, including brand icons such as Mott's, Canada Dry, Halls,
Trident, Dentyne, Bubblicious, Trebor, Bassett, Dr Pepper, 7 Up and
Snapple. -It employ 60,000 people in over 200 countries - Worlds No 1
Confectionery company- World's No 2 Gums company- World's No 3
beverage company.
Cadbury Brands:
Chocolates
Snacks
Beverages
Candy
SNACKS:
Bytes
BEVERAGES
Bournvita
CANDY
Halls
CHOCOLATES
Dairy Milk.
5 Star.
Perk.
Celebrations.
Temptation.
Eclairs.
Gems.
Dairy Milk
The story of Cadbury Dairy Milk started way back in 1905 at Bournville,
U.K., but the journey with chocolate lovers in India began 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 flavors and the premium dark chocolate range which is exotic dark
chocolate in luscious flavors.
Temptation
Cadbury Temptations is a range of delicious premium chocolate in five
flavors variants - Roast Almond Coffee, Honey Apricot, Mint Crunch, Black
Forest and Old Jamaica.
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 Kolkata and Delhi and collected the
data.
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 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. The technique that I have used is bar technique.
Analysis of the study
Liking for the Chocolates Table-1
Liking for the Chocolate Yes No
Number of respondents 95 5
Chart 1
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 GroupsTable-2
Age Groups 0-10 10-20 20-30 Above 30
No. of
respondents
14 42 33 11
Chart 2
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,
Preference according to age groups
Brands Age Groups
0-10 10-20 20-30 Above 30
Cadbury 7 35 24 5
Nestle 5 6 8 5
No Consumption 2 1 1 1
Chart 3
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 like to have both brands.
Brand preferenceTable-4
Brands Preference by Consumers
Cadbury 73
Nestle 22
Chart 4
From the above analysis of given sample of 93 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 Cadbury Chocolates
Table-5
Cadbury Chocolates
Sub Brands No. of respondents
Dairy Milk 69
5 Star 64
Perk 61
Celebrations 49
Temptations 41
Chart 5
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 No. of respondents
Kit Kat 17
Munch 19
Milky Bar 18
Bar One 16
Milk Chocolates 11
Chart 6
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
Chart 7
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 Sub Brands of Cadbury
Chocolates
Cadbury Chocolates
Sub
Brands
Grand total
of
Preference
Average
(Grand
total/No. of
respondents)
Ranks
Dairy Milk 315 4.3 1
5 Star 220 3 2
Perk 176 2.4 3
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
Nestle Chocolates
Sub Brands Grand total
of
Preference
Average
(Grand
total/No. of
Ranks
respondents)
Kit Kat 70 3.18 1
Munch 64 2.9 3
Milky Bar 65 2.95 2
Bar-One 45 2.05 4
Milk Chocolate 30 1.36 5
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 of Cadbury
Chocolates
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 224 3.07 9
Shape 213 2.92 10
Quantity 262 3.59 5
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
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.
Satisfaction Factor – Cadbury Chocolate
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
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.
Satisfaction Factor – Nestle Chocolate
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 4
Quantity 73 3.32 6
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.
Form Preference
Form of Chocolates No. of Respondents
Hard 35
Nutties 25
Crunchy 29
Chew 20
Chart 8
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 preferred
Pack Size No. of Respondents
Small 28
Big 48
Family Pack 19
Chart 9
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
Promotional Offers No. of Respondents
Free Gifts 52
Price Offers 23
Any Others 20
Chart 10
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
Factors No. of Respondents
Advertisement 65
Suggestions from Friends & Relatives 16
Attractive Display 11
Doctors Advice 15
Brand Ambassador 9
Ingredients 25
Chart 11
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
Media of Advertisement No. of Respondents
Television 82
Newspaper 7
Brochure 3
Hoarding 4
Display 15
Chart 12
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
Frequency of
Consumption
No. of Respondents
Once in a Fortnight 16
Daily 17
Weekly 39
Monthly 18
Quarterly 5
Chart 13
According to the above analysis it is concluded that mostly people purchase
chocolates weekly. Only 15 out of 95 purchase chocolates quarterly.
Reasonable Price
Price of Chocolates No. of Respondents
Below 5 6
5-10 23
10-20 51
20-30 4
Above 30 11
Chart 14
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
Brand Loyalty Actions No. of
Respondents
Postpone your purchase 26
Switchover to other Brands 24
Go to other shop for search or preferred Brand 45
Chart 15
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 consumer if new brand is introduced
Shift to New Brand of the preferred
Product
No. of Respondents
No not at all 35
May consider 27
No shall not 4
Can’t say 29
Chart 16
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.
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/Flavor.
Brand.
Image.
Quality.
Packaging.
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.
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.
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 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.
Suggestions & 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.
Bibliography
www.cadburyindia.com
www.nestle.com
www.aphrodite-chocolates.co.uk/
history_chocolate.htm
www.google.com
www.cadbury.co.nz/carnival/index.htm
www.packaging-technology.com.../cadbury4.html
www.chocolatereview.co.uk
www.wikipedia.org
Annexure
Project Report on Consumer Behavior towards Nestle
& Cadbury Chocolates
1. Do you eat chocolate?
Yes No
2. Which brand chocolate do you prefer?
Cadbury Nestle
3. Which sub-brands you have purchased?
Cadbury Nestle
Dairy Milk Kit Kat
5 Star Munch
Perk Milky Bar
Celebration Bar One
Temptation Milk Chocolate
4. Rank the sub-brands of chocolates according to your preference? (1
for most preferred)
Cadbury Nestle
Dairy Milk Kit Kat
5 Star Munch
Perk Milky Bar
Celebration Bar One
Temptation Milk Chocolate
5. How much importance do you give to the following factors when you
purchase a chocolate? (Tick in the desired column).
Factors Very
Important
Important Normal Least
Important
None
Flavor/Taste
Price
Quality
Packaging
Form
Brand
Image
Color
Shape
Quantity
6. How much are you satisfied with the following factors in your preferred
Chocolate? (Tick in the desired column).
Factors Very
Satisfied
Satisfied Normal Least
Satisfied
Can’t Say
Flavor/Taste
Price
Quality
Packaging
Form
Brand
Image
Color
Shape
Quantity
7. Which form of a chocolate do you like?
Hard Nutties
Crunchy Chew
8. What pack do you purchase?
Small Big Family Pack
9. Which promotional offers attract you most?
Free Gifts Price Offer Any Other
10. Which of these factors affect your purchase?
Advertisement
Suggestion from friends and relatives
Attractive Display
Doctors Advice
Brand Ambassadors
Ingredients
11. Which media of advertisement influence your purchase?
Television Newspapers Brochures
Hoarding Display
12. How frequently do you purchase chocolates?
Once in a fortnight Daily
Weekly Monthly
Quarterly
13. What according to you is the reasonable price of chocolate?
Below 5 5-10 10-20
20-30 Above 30
14. If your preferred brand is not available for repeat purchase then
what will you do?
a) Postpone your purchase
b) Switch over to other brand
b) Go to the other shop to search for
your preferred brand
15. 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
16. 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 10-20
20-30 Above 30
Gender:
Phone Number:
Marital status:
Education:
Profession:
THANKS