STUDY OF MARKET ANALYSIS OF CADBURYS AND NESTLE
PROJECT REPORT SUBMITTED TO AMITY INTERNATIONAL BUSINESS SCHOOL
SUBMITTED TO: Dr.Arun Sacher AIBS, Noida
SUBMITTED BY: Akshi Jain Mba ib Aibs, Noida Batch 2009-11
STATEMENT OF AUTHENTICITY
Hereby declare that the project report entitled ³ COMPARITIVE STUDY OF MARKETING STRATEGIES OF CADBURYS AND NESTLE IN U.K. MARKET´ submitted for the degree of Master of Business Administration, 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.
AKSHI JAIN MBA-IB SEM 1 BATCH(2009-11) AIBS, NOIDA
STATEMENT OF AUTHENTICITY
Hereby declare that the project report entitled ³ COMPARITIVE STUDY OF MARKETING STRATEGIES OF CADBURYS AND NESTLE IN U.K. MARKET´ submitted for the degree of Master of Business Administration, 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.
AKSHI JAIN MBA-IB SEM 1 BATCH(2009-11) AIBS, NOIDA
Acknowledgement Survey is an excellent tool for learning and exploration. Application of theoretical knowledge to practical situations is the bonanzas of this survey. Without a proper combination of inspection and perspiration, it¶s not easy to achieve anything. I would like to do it as I really wish to express my gratitude toward all those who have been helpful to me directly or indirectly during the development of this project. I would like to thank my faculty Mr. Arun Sacher who was always there to help and guide me when I needed help. His perceptive criticism kept me working to make this project more full proof. I am thankful to him for his encouraging and valuable support. Working under him was an extremely knowledgeable and enriching experience for me. I am very thankful to him for all the value addition and enhancement done to me.
TABLE OF CONTENT Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.
Contents Introduction to study Objective of study History of chocolates Nestle Company Nestle story Nestle brand Cadbury company Facts of the company Research and design methodolgy Analysis of the study Findings Conclusion Suggestions and recommendations Bibliography Annexure Questionnaire
Pg. No. 7 9 14 25 26 27 31 33 41 44 62 64 65 66 67 69
LIST OF TABLES S.NO.
CONTENTS
Pg. No.
1.
Liking for the chocolates Different age group Preference acc. To age group Brand preference
46
Purchase of Cadburys chocolates Purchase of nestle chocolates Overall purchase of chocolates Preference of sub brands of nestle
50
2. 3. 4. 5. 6. 7. 8.
47
48 49
51 52 53
LIST OF GRAPHS S.NO.
CONTENTS
Pg. No.
1.
Liking for the chocolates Different age group Preference acc. To age group Brand preference
46
2. 3. 4. 5.
6. 7. 8.
Purchase of Cadburys chocolates Purchase of nestle chocolates Overall purchase of chocolates Preference of sub brands of nestle
47 48 49 50
51 52 53
MISSION STATEMENT:
³Cadbury means quality this is our promise our reputation is built upon quality, our commitment, to continuous improve will ensure our promise is deliver.´
INTRODUCTION TO
STUDY
INTRODUCTION In this research I have survey the product performance and Marketing Strategies of twofamous brands of chocolates ± Nestle and Cadbury , which are consumed by people of allages. During this research I have interacted with people of ³LONDON´. 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 knowwhich particular brand of chocolate is most preferred by people of different age groups. In this research I have surveyed that what are the marketing strategies of both the companies, and the comparative financial analysis of both the companies. In this report I have tried to explain the entireresearch and facts product wise.
OBJECTIVES OF THE STUDY This project is based on the comparative study of marketing and financial analysis towards Nestle and Cadbury chocolates. Objectives of the study are: y
y
y
Study the marketing strategies of Cadburys and nestle The other objective is to know about the customer satisfaction level associated with the product and the customer preference level. To study the factors affecting the consumption pattern.
INTRODUCTION TO CHOCOLATES AND COMPANY
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, µCause we can have it Anytime, any season!
History of chocolate: The origin of chocolate can be traced back to the ancient Maya and Aztec civilizations inCentral America, who first enjoyed ³chocolati´ a much-prized spicy drink made from roasted cocoa beans.Throughout its history, whether as cocoa or drinking chocolate beverage or confectionarytreat, chocolate has been a much sought after food. The Aztec empire
³Chocolate´(in the form of a luxury drink) was consumed in large quantities by theaztecs: the drink was described as ³ finely ground, soft, foamy, reddish, bitter with chilliwater, aromatic flowers, vanilla and wild bee honey.The dry climate meant the Aztecs were unable to grow cocoa trees, and had to obtainsupplies of cocoa beans from ³ tribute´ or trade. Don Cortes
The Spanish invaded Mexico in the 16th century, by this time the Aztecs had created apowerful empire, and the Spanish armies conquered Mexico. Don Cortes was madecaptain general and governor of Mexico.When he returned to Spain in1528 he loaded his galleons with cocoa beans andequipment for making the chocolate drink. Soon ³chocolate´ became a fashionable drinkenjoyed by the rich in Spain. Chocolate across Europe
An Italian traveler, Francesco carletti, was the first to break the Spanish monopoly. Hehad visited Central America and seen how the Indians prepared the cocoa beans and howthey 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 ofSpain married king Louis 13 of FranceThe 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 Englishdoctor, sir Hans¶s sloane, whoafter 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 centralAmerica rain forests, where the tropical mix of high rain fall combined with high yearround temperatures and humidity provide the ideal climate for cultivation of the plant from which chocolate is derived, the cacao tree. ³ Chocolate is made from the cocoa bean, found in pods growing from the trunk andlower branches of the cacao tree, Latin name ³ theobroma cacao´ meaning ³ food of thegods´ Cacao was corrupted into the more familiar ³ cocoa´ by the early European explorers. The Maya brewed a spicy, bittersweet drink by roasting and pounding the seeds of thecacao tree with maize and capsicum peppers and letting the mixture ferment. This drinkwas reserved for use in ceremonies as well as for drinking by the wealthy and religiouselite; they also ate cacao porridge.The Aztecs, like the Mayans, also enjoyed cacao as a beverage fermented from the rawbeans, which again featured prominently in ritual and as a luxury available only to thevery wealthy. The Aztecs called this drink xocolatl, the Spanish conquistadors found thisalmost impossible to pronounce and so corrupted it to the easier ³ chocolat´ the Englishfurther changed this to chocolate.The Aztec¶s regarded chocolate as an aphrodisiac and their emperor, Montezumareputedly drank it fifty times a day from a golden goblet and is quoted as saying ofxocolatl: ³ the divine drink, which builds up resistance and fights fatigue. A cup of thisprecious drink permits a man to walk for a whole day without food´ Chocolate in Europe
Xocolatl!
or chocolat or chocolate as it became known, was brought to Europe byCortez, by this time the conquistadors had learned to make the drink more palatable toEuropean tastes by mixing the ground roasted beans with sugar and vanilla ( a practicestill 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 broughtback from the new world by the Spanish treasure fleets were roasted and ground, and bythe early 17th century chocolate powder ± from which the European version of the drinkwas made- was being exported to other parts of Europe. The Spanish kept the source ofthe drink- the beans- a secret for many years, so successfully in fact, that when Englishbuccaneers boarded what they thought was a Spanish ³ treasurer galleon´ in 1579, only tofind it loaded with what appeared to be ³ dried sheep¶s droppings, they burned the wholeship in frustration. If only they had known, chocolate was so expensive at that time, thatit 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 hadbecome popular throughout Europe, in the Spanish Netherlands, Italy, France, Germanyand ± in about 1520 ± it arrived in England.The first chocolate house in England opened in London in 1657 followed rapidly bymany others. Like the already well established coffee houses, they were used as clubswhere the wealthy and business community met to smoke a clay pipe of tobacco,conduct business and socialize over a cup of chocolate. Back to the America¶s
Event¶s went full circle when English colonists carried chocolate (and coffee) with themto England¶s colonies in north America. Destined to become the united states of Americaand Canada, they are now the worlds largest consumers ± by far ± of both
chocolate andcoffee, 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 ofEnglish civil war and pilgrim fathers fame and a history of chocolate would not becomplete without mentioning their part in it. Some of the most famous names inchocolate were Quakers, who for centuries held a virtual monopoly of chocolate makingin 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 Charles1st that the Quaker¶s who evolved from the puritans, first began their historic associationwith chocolate. Because of their pacifist religion, they were prohibited from many normalbusiness activities, so as an industrious people with a strong belief in the work ethic (likethe 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 biblical³staff of life´, and bakers in England were the first to add chocolate to cakes so it wouldbe a natural progression for them to start making pure chocolate. They were also heavilyinvolved 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 havenow all but disappeared (taken over by Cadbury) and row tree have merged Swisscompany nestle, to form the largest chocolate manufacturer in the world. Cadbury havestayed with chocolate production and are now, if not quite the largest, probably one of thebest-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 beganadding cocoa powder to cakes in the mid 1600¶s. Then in 1828 a Dutch chemist, Johannesvan houten, invented a method of extracting the bitter tasting fat or ³cocoa butter´ fromthe 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 houtenprocess) 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 firstmilk chocolate.
CHOCOLATE PRODUCTION
The cocoa-bean -- the heart of the sweetest delicacy in the world ± isbitter! This is why, up to the 18th century some native tribes ate only thesweetish flesh of the cocoa fruit. They regarded the precious bean aswaste or used it, as was the case among the Aztecs, as a form of currency. TheVarieties
There are two quite different basic classifications of cocoa, under whichpractically all varieties can be categorised: Criollo and Forastero cocoas.The pure variety of the Criollo tree is found mainly in its native Equadorand Venezuela. The seeds are of finer quality than those of the Forastero variety. They have a particularly fine, mild aroma and are, therefore, used only in the productionof high-quality chocolate and for blending. However, Criollo cocoa accounts for only10% of the world crop. The remaining 90% is harvested from trees of the Forasterofamily, with its many hybrids and varieties. The main growing area is West Africa. Thecocoa 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, thefruit is opened. Fermentation
The fermentation process is decisive in the production of high quality raw cocoa. Thetechnique 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 groundor 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 bypassing through sieves, and by brushing. Finally, the
last vestiges ofwood, jute fibres, sand and even the finest dust are extracted by powerfulvacuum equipment. Roasting
The subsequent roasting process is primarily designed to develop the aroma. The entireroasting process, during which the air in the nearly 10 feet high furnaces reaches atemperature of 130 °C, is carried out automatically. Crushingandshelling
The roasted beans are now broken into medium sized pieces in the crushing machine. Blending
Before grinding, the crushed beans are weighed and blended according to special recipes.The secret of every chocolate factory lies in the special mixing ratios, which it hasdeveloped for different types of cocoa. Grinding
The crushed cocoa beans, which are still fairly coarse are now pre-ground by specialmilling equipment and then fed on to rollers where they are ground into a fine paste. Theheat 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, liquidmixture. This is dark brown in color with a characteristic, strong odour. During cooling itgradually sets: this is the cocoa paste. At this point the production process divides into two paths, but which soon join again. Apart of the cocoa paste is taken to large presses, which extract the cocoa butter. The otherpart passes through various blending and refining processes, during
which some of thecocoa butter is added to it. The two paths have rejoined. CocoaButter
The cocoa butter has important functions. It not only forms part of everyrecipe, but it also later gives the chocolate its fine structure, beautifullustre and delicate, attractive glaze. Cocoa Powder
After the cocoa butter has left the press; cocoa cakes are left which still contain a 10 to20% proportion of fat depending on the intensity of compression.These cakes are crushed again, ground to powder and finely sifted inseveral stages and we obtain a dark, strongly aromatic powder, which isexcellent for the preparation of delicious drinks - cocoa. Cocoa paste, cocoa butter, sugar and milk are the four basic ingredients for makingchocolate. By blending them in accordance with specific recipes the three types ofchocolate 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 verticallymounted steel rollers rotate in opposite directions. Under heavy pressurethey pulverise the tiny particles of cocoa and sugar down to a size ofapprox. 30 microns. (One micron is a thousandth part of a millimetre.) Conching
But still the chocolate paste is not smooth enough to satisfy our palates.But within two or three days all that will have been put right. For duringthis period the chocolate paste will be refined to such an extent in theconches that it will flatter even the most discriminating palate.Conches (from the Spanish word
"concha",
meaning a shell) is the name given to thetroughs in which 100 to 1000 kilograms of chocolate paste at a time can be heated up to80 °C and, while being constantly stirred, is given a velvet smoothness by the addition ofcertain amounts of cocoa butter. A kind of aeration of the liquid chocolate paste thentakes place in the conches: its bitter taste gradually disappears and the flavour is fullydeveloped. The chocolate no longer seems sandy, but dissolves meltingly on the tongue. It has attained the outstanding purity, which gives it its reputation.
NESTLE NESTLE HEADQUATER IN U.K
Nestle¶ Story Nestlé was founded in 1867 on the shores of Lake Geneva in Vevey, Switzerland and itsfirst product was ³Farine Lactée Nestlé´, an infant cereal specially formulated by HenriNestlé to provide and improve infant nutrition. From its first historic merger with theAnglo-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 itsnearest competitor in the food and beverage sector. Nestlé¶s trademark of birds in a nest, derived from Henri Nestlé¶s personal coatof arms, evokes the values upon which he founded his Company. Namely, the values ofsecurity, maternity and affection, nature and nourishment, family and tradition. Today, itis not only the central element of Nestlé¶s corporate identity but serves to define theCompany¶s products, responsibilities, business practices, ethics and goals. In 2004, Nestlé had around 247,000 employees worldwide, operated 500factories in approx. 100 countries and offered over 8,000 products to millions ofconsumers universally. The Company¶s transparent business practices, pioneering environment policy and respect for the fundamental values of different cultures haveearned it an enviable place in the countries it operates in. Nestlé¶s activities contribute toand nurture the sustainable economic development of people, communities and nations.Above all, Nestlé is dedicated to bringing the joy of µGood Food, Good Life¶ to people throughout their lives, throughout the world.
Nestle¶ Brands Milk Products & Nutrition Beverages Prepared Dishes and Cooking Aids Chocolates & Confectionary
MILK
PRODUCTS AND NUTRITION:
NESTLÉ EVERYDAY Dairy Whitener NESTLÉ EVERYDAY Slim NESTLÉ EVERYDAY Ghee NESTLÉ MILKMAID NESTLÉ Fresh 'n' Natural Dahi NESTLÉ Fresh 'n' Natural Slim Dahi NESTLÉ Jeera Raita NESTLÉ MILKMAID Fruit yoghurt NESTLÉ Milk NESTLÉ Slim Milk
BEVERAGES: NESCAFÉ CLASSIC NESCAFÉ SUNRISE NESTLÉ MILO NESCAFÉ 3 in 1 NESCAFÉ Koolerz
PREPARED DISHES AND COOKING AIDS MAGGI 2-MINUTE Noodles MAGGI Vegetable Atta Noodles MAGGI Dal Atta Noodles MAGGI Rice Noodles Mania MAGGI Sauces MAGGI Pizza Mazza MAGGI Healthy Soups MAGGI Healthy Soup- Sanjeevni MAGGI MAGIC Cubes
CHOCOLATES & CONFECTIONARY NESTLÉ KIT KAT NESTLÉ KIT KAT LITE NESTLÉ MUNCH NESTLÉ MUNCH POP CHOC NESTLÉ MILKYBAR NESTLÉ MILKYBAR CHOO NESTLÉ BAR-ONE NESTLÉ FUNBAR NESTLÉ Milk Chocolate POLO POLO Powermint NESTLÉ Eclairs
NESTLEKITKAT
are crisp wafer fingers covered with choco layer. NESTLÉ KIT KAT has a unique finger format witha µbreaking' ritual attached to it.NESTLÉ KIT KAT is one of the most successful brands in the world and everyyear 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 MUNCHis so crisp, light and irresistible that you just µcan't stop Munching.' NESTLÉ MUNCH isthe largest selling SKU in the category! NESTLE M ILKY BAR:
NESTLÉ MILKYBAR is a delicious milky treat, which kids love. Relaunched in January2006 with a Calcium Rich recipe, NESTLÉ MILKYBAR is a favorite with parents totreat their kids with. NESTLE BAR-ONE
is a luscious nougat and caramel with delicious choco layer. NESTLÉ BAR-ONEconstantly reminds you that it is µTime for Action' .
NESTLE Milk Chocolate:
NESTLÉ Milk Chocolate is a milk chocolate with a delicious taste. Kids just love it!
CADBURY
John Cadbury
How
Cadbury Chocolate is made
Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powderJohn paste to the dark chocolate recipe of cocoa mass, cocoa butter and sugar. By today'sstandards this chocolate was not particularly good: it was coarse and dry and not sweet ormilky enough for public tastes. There was a great deal of competition from continental manufacturers, not only theFrench,but also the Swiss, renowned for their milk chocolate.Led by George Cadbury Junior, the Bournville experts set out to meet the challenge. Aconsiderable amount of time and money was spent on research and on new plant designedto produce the chocolate in larger quantities. A recipe was formulated incorporating fresh milk, and production processes weredeveloped to produce a milk chocolate 'not merely as good as, but better than' theimported milk chocolate'.
Four years of hard work were invested in the project and in 1905 whatwas to be Cadbury's top selling brand was launched.Three names were considered: Jersey, Highland Milk and Dairy Maid.Dairy Maid became Dairy Milk, and Cadbury's Dairy Milk, with its unique flavour andsmooth creamy texture, was ready to challenge the Swiss domination of the milkchocolate market. By 1913 Dairy Milk had become the company's best selling line and in the mid twentiesCadbury's Dairy Milk gained its status as the brand leader, a position it has held eversince.
FACT REGARDING THE COMPANY Founded By
Birmingham, England (1824)
Headquaters
City of Westminster, London, England, United Kingdom
Key people
Roger Carr, Chairman Todd Stitzer, CEO
Industry
Confectionery and Soft drinks
Revenue
£5,384
million (2008)
Operating income
£388
million (2008)
Net income
£364
million (2008)
Employees
71,657 (2008)
Website
www.cadbury.com
Company Overveiw of Cadbury in U.K
CADBURY WORLD WIDE
Cadbury is the world's largest confectionery company and have astrong 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 aroundthe world. We employ around 60,00 people.
Their heritage starts back in 1783 when Jacob Schweppe perfected hisprocess for manufacturing carbonated mineral
water in Geneva,Switzerland. And in 1824 John Cadbury opened in Birmingham selling cocoa andchocolate. These two great household names merged in 1969 to form Cadbury Schweppesplc. Since then they have expanded their business throughout the world by aprogramme of organic and acquisition led growth. Concentrating on their core brands in beverages and confectionery since the1980s, 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 Eclairs Gems DAIRY MILK
The story ofCadbury DairyMilk started wayback in 1905 at Bournville, U.K., but the journey with chocolate lovers in India began in1948. The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste ofCadbury Dairy Milk with a variety of ingredients and are very popular amongst teens t eens &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, adelightful combination of milk chocolate and white chocolate. Giving consumers anexciting 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 mark et share of 14%, Cadbury 5 Starmoves 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 nougatinside, Cadbury 5 Star has re-invented itself over the years to keep satisfying theconsumers taste for a high quality & different chocolate eating experience. experience. One of the key properties that Cadbury 5 Star was associated with was its classic Goldcolour. And through the passage of time, this was one property that both, the brand andthe 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, CadburyPerk 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, CadburyPerk 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 anddry- fruits during festive seasons.
Cadbury Celebrations is available in several assortments: An assortment of chocolateslike 5 Star, Perk, Gems, Dairy Milk and Nutties and rich dry fruits enrobed in Cadburydairy milk chocolate in 5 variants, Almond magic, raisin magic, cashew magic, nutbutterscotch and caramels. The super premium Celebrations Rich Dry Fruit Collection which is a festive offering isan exotic range of chocolate covered dry fruits and nuts in various flavours and the premium dark chocolate range which is exotic dark chocolate in luscious flavours. TEMPTATION
Cadbury Temptations is a range of delicious premium chocolate in fiveflavours variants - Roast Almond Coffee, Honey Apricot, Mint Crunch, BlackForest and Old Jamaica.
RESEARCH
AND
DESIGN
METHODOLOGY 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 LONDON 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 ³Comparative 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
ANALYSIS
OF
THE STUDY
TABLE 1:
Liking for the Chocolate
Number of Respondents
Yes
No
95
5
From the above analysis of the given sample of 100 respondents it is concluded that out of 100 people 95 people likes to eat chocolate while only 5 people don¶t prefer to eat chocolate.
DIFFERENT AGE GROUPS
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
According to the above analysis it is concluded that people of different age groups prefer mostly Cadbury brand of chocolate while Nestle brand is least preferred by the age group between 10-20. People of age group above 30 equally likes to have both brands.
BRAND PREFERENCE
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.
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.
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.
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.
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.
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 AND RECOMMENDATIONS:
Company
should concentrate more on television for
advertisement, as mostly people get attracted through television only. For
promotional offers, company should go for free gifts
rather than going for other ways. Nestle
company should concentrate on its packing as
people are least satisfied with it while Cadbury should concentrate on the shape of a chocolate. People
are unsatisfied with the price and quantity of
chocolate so companies should concentrate in this regard also.
BIBLIOGRAPHY
BIBLIOGRAHY
http://www.cadburyindia.com http://www.nestle.com http://www.aphrodite-
chocolates.co.uk/history_chocolate.htm http://www.google.com http://www.cadbury.co.nz/carnival/index.htm http://www.packaging-
technology.com/«/cadbury4.htmL http://www.chocolatereview.co.uk http://en.wikipedia.org/wiki/preference
ANNEXURE
QUESTIONNAIRE
PROJECT
REPORT
ON
CONSUMER
PREFERENCETOWARDS NESTLE AND CADBURY CHOCOLATES
Que1. Do you eat chocolate? Yes
No
Que2. Which brand of chocolate do you prefer? Cadbury
Nestle
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 5Star
Kit Kat Munch
Perk Celebrations Temptation
Milky Bar Bar-One MilkChocolate
Que5. How much importance do you give to the following factors when you purchase a chocolate? (Tick in the desired column) Factors
Flavor/tast e Price Quality Packaging Form Brand Image Color Shape Quantity
Very Importan Norma Least Non Importan t l Importan e t t
Que6. How much are you satisfied with the following factors in your preferred chocolate? (Tick in the desired column) Factors
Very Satisfie d
Satisfie d
Norma Least l Satisfie d
Flavor/tast e Price Quality Packaging Form Brand Image Color Shape Quantity Que7. Which form of a chocolate do you like? Hard
Nutties
Crunchy
Chew
Can¶ t Say
Que8. What pack do you purchase? Small
Big
Family Pack
Que9. Which promotional offers attract you most? Free gifts
Price Offer
Any other
Que10.Which of these factors affect your purchase? Advertisement
Suggestion
Attractive
Doctors
Brand
from friends and relatives
Display
Advice
Ambassadors
Ingredients
Que11. Which media of advertisement influence your purchase? Television
Newspapers
Hoarding
Display
Brochures
Que12. How frequently do you purchase chocolates? Once in a fortnight
Daily
Weekly
Monthly
Quarterly
Que13. What according to you is the reasonable price of chocolate? Below5
5-10
20-30
Above 30
10-20
Que14. If your preferred brand is not available for repeat purchase then what will you do?
Postpone
Switch
your purchase
over to other brand
Go
to the other shop to search for your preferred brand
Que15. If another brand of the same product appears in the market, will you prefer to stop buying this brand and buy the new brand? No, not at all
I may consider
No, I shall not
can¶t say
Que16. If you don¶t like to change to the new brand, then what are the reasons for continuing to purchase the old brand?