The Project Report On
“COMPARATIVE “COMPARATIVE ANALYSIS OF CUSTOMER BUYING BEHAVIOUR TOWARDS CADBURY AND NESTLE”
VS
Submitted to PUNJAB TECHNICAL UNIVERSITY JALANDHAR
In the partial fulfillment of the requirement for the Award of degree of
Masters of Business Administration (MBA)
PROJECT GUIDE:
SUBMITTED BY:
Mr. Pranjal Pachpore
Lovleen Taluja
Faculty. (In Management)
94512236937 Session (2009-11)
GIAN JYOTI INSTITUTE OF MANAGEMENT & TECHNOLOGY MOHALI
1
DECLARATION
I hereby declare that the project report entitled “COMPARATIVE ANALYSIS OF CUSTOME BUYING BEHAVIOR TOWARDS TOWARDS CADBURY AND NESTLE” 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 o r diploma.
Place:
LOVLEEN TALUJA
Date
MBA IV SEM.
2
ACKNOWLEDGEMENT Survey is an excellent tool for learning and exploration. No classroom routine can substitute which is possible while working in real situations. Application of theoretical knowledge to practical situations is the bonanzas of this survey. Without a proper combination of inspection and perspiration, it is not easy to achieve anything. There is always a sense of gratitude, which we express to others for the help and the needed services services they render during the different different phases of our lives. I too would like to do it as I really wish to express my gratitude toward all those who have been helpful to me directly or indirectly during the development of this project. I would like to thank my teachers Dr. Babi Babita ta Dosaj Dosajh h (H (HOD OD)) s and Mr. Pranjal Pranjal Pachpore (Faculty)
who has been always there to help and guide me in all manners.
Their perceptive criticism kept me working to make this project more useful. I am thankful to them for their encouraging and valuable support. Working with them has been 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 completely express my overriding debt of gratitude to my parents whose support helped me in all the way. Above all I shall thank my friends who constantly encouraged me so as to enable me to do this work successfully. LOVLEEN TALUJA MBA IV SEM.
TABLE OF CONTENTS 3
CHAPTER
CHAPTER NAME
PAGE NUMBER
NUMBER
I
INTRODUCTION
5
II
COMPANY PROFILE
8
III
REVIEW OF LITRATURE
33
IV
RESEARCH METHODOLOGY
35
V
OBJECTIVES OF THE STUDY
39
VI
ANALYSIS & FINDINGS
41
VII VIII IX
LIMITATIONS OF THE STUDY
61
CONCLUSION
63
SUGGESTIONS &
65
RECOMMENDATIONS X
BIBLIOGRAPHY
67
XI
ANNEXURE
69
4
I.
INTRODUCTION
INTRODUCTION
5
In this research I have surveyed in Chandigarh 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 different ages at “CHANDIGARH”. After this research I came to know how people perceive 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 an attempt has been made also to identify the consumption habits of chocolate in terms of the pack size etc ie 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 research process.
CUSTOMER BUYING BEHAVIOUR 6
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 u nderstand this. Preference
(or "taste "taste") ") is a concept, used in the social sciences, sciences, particularly economics economics.. It
assumes a real or imagined "choice" between alternatives and the possibility of rank ordering of these alternatives, based on happiness happiness,, satisfaction, gratification gratification,, enjoyment, utility they provide. More generally, it can be seen as a source of motivation of motivation.. In cognitive sciences, individual preferences enable choice cho ice of objectives/goals. The study of the consumer preference not only focuses on how and why consumers make buying buying decision, but also focuses on how and why consumers 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.
7
II. II. COMPA OMPAN NY PROF PROFIL ILE E
8
Chocolate
The very word makes your mouth water. Chocolate is more than just a food: it’s a state of mind.
9
History of chocolate:
The origin of chocolate can be traced back to the ancient Maya and Aztec civilizations in Central America, who first enjoyed “chocolati” a much-prized spicy drink made from roasted cocoa beans. Throughout its history, whether as cocoa or drinking chocolate beverage or confectionary treat, chocolate has been a much sought after food. The Aztec empire
“Chocolate”(in the form of a luxury drink) was consumed in large quantities by the aztecs: the drink was described as “ finely ground, soft, foamy, reddish, bitter with chilli water, aromatic flowers, vanilla and wild bee honey. The dry climate meant the Aztecs were unable to grow cocoa trees, and had to obtain supplies of cocoa beans from “ tribute” or trade Don Cortes
The Spanish invaded Mexico in the 16th century, by this time the Aztecs had created a powerful empire, and the Spanish armies conquered Mexico. Don Cortes was made captain general and governor of Mexico. When he returned to Spain in1528 he loaded his galleons with cocoa beans and equipment for making the chocolate drink. Soon “chocolate” became a fashionable drink enjoyed by the rich in Spain. Chocolate across Europe
An Italian traveler, Francesco carletti, was the first to break the Spanish monopoly. He had visited Central America and seen how the Indians prepared the cocoa beans and how they made the drink, and by 1606 chocolate was well established in Italy.
10
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 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. ferment. This drink was reserved for use in ceremonies as well as for drinking by the wealthy and religious elite; they also ate cacao porridge. The Aztecs, like the Mayans, also enjoyed cacao as a beverage fermented from the raw beans, which again featured prominently in ritual and as a luxury available only to the very wealthy. The Aztecs called this drink xocolatl, the Spanish conquistadors found this
11
almost impossible to pronounce and so corrupted it to the easier “ chocolat” the English further changed this to chocolate. The Aztec’ Aztec’ss regard regarded ed chocola chocolate te as an aphrodi aphrodisia siacc and their their empero emperor, r, Montez Montezuma uma reputedly drank it fifty times a day from a golden goblet and is quoted as saying of xocolatl: “ the divine drink, which builds up resistance and fights fatigue. A cup of this precious drink permits a man to walk for a whole day without food” Chocolate in Europe
Xocolatl! or chocolat or chocolate as it became known, was brought to Europe by Cortez, by this time the conquistadors had learned to make the drink more palatable to European tastes by mixing the ground roasted beans with sugar and vanilla ( a practice still continued today), thus offsetting the spicy bitterness of the brew the Aztec’s drank. The first chocolate factories opened in Spain, where the dried fermented beans brought back from the new world by the Spanish treasure fleets were roasted and ground, and by the early 17th century 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 choco late 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. Like the already well established coffee houses, they were used as clubs where where the wealthy wealthy and busines businesss communit communityy met to smoke smoke a clay pipe of tobacco, tobacco, conduct business and socialize over a cup of chocolate.
12
Back to the America’s
Event’s went full circle when English colonists carried chocolate (and coffee) with them to England’s colonies in north America. Destined to become the united states of America and Canada, they are now the worlds largest consumers – by far – of both chocolate and coffee, consuming over half of the words total production of chocolate alone. The Quakers
The Quakers were, and still are, a pacifist religious sect, an offshoot of the puritans of English civil war and pilgrim fathers fame and a history of chocolate would not be complete without mentioning their part in it. Some of the most famous names in chocolate were Quakers, who for centuries held a virtual monopoly of chocolate making in the English speaking world – fry, Cadbury and row tree are probably the best known. Its probably before the time of the English civil war between parliament and king Charles 1st that the Quaker’s who evolved from the puritans, first began their historic association with chocolate. Because of their pacifist religion, they were prohibited from many normal business activities, so as an industrious people with a strong belief in the work ethic (like the puritans), they involved themselves in food related businesses and did very well. Baking was a common occupation for them because bread was regarded as the biblical “staff of life”, and bakers in England were the first to add chocolate to cakes so it would be a natural progression for them to start making pure chocolate. They were also heavily involved in breakfast cereals but that’s another story. What is certain is that the fry, row tree and Cadbury families in England among others, began chocolate making and in fact Joseph fry of fry &sons (founded 1728 in Bristol, England) is credited with producing and an d 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, nestle, to form the largest chocolate chocolate manufacture manufacturerr 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.
13
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.
14
CHOCOLATE PRODUCTION
The cocoa-bean -- the heart of the sweetest delicacy in the world -- is bitter! This is why, up to the 18th century some native tribes ate only the sweetish flesh of the cocoa fruit. They regarded the precious bean as waste or used it, as was the case among the Aztecs, as a form of currency. TheVarieties
There are two quite different basic classificati classifications ons of cocoa, under which practically all varieties can be categorised: Criollo and Forastero cocoas. The pure variety of the Criollo tree is found mainly in its native Equador and Venezuela. The seeds are of finer quality than those of the Forastero variety. They have a particularly fine, mild aroma and are, therefore, used only in the production of high-quality chocolate and for blending. However, Criollo cocoa accounts for only 10% of the world crop. The remaining 90% is harvested from trees of the Forastero family, with its many hybrids and varieties. The main growing area is West Africa. The cocoa tree can flourish only in the hottest regions of the world. TheHarvest
Immediately after harvesting, the fruit is treated to prevent it from rotting. At fermentation sites either in the plantation or at, collecting points, the fruit is opened. Fermentation
The fermentation process is decisive in the production of high quality raw cocoa. The technique varies depending on the growing region.
15
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 roasting process process is primarily primarily designed designed to develop the aroma. The entire entire roasting process, during which the air in the nearly 10 feet high furnaces reaches a temperature of 130 °C, is carried out automatically. Crushingandshelling
The roasted beans are now broken into medium sized pieces in the crushing machine.
Blending
Before grinding, the crushed beans are weighed and blended according to special recipes. The secret of every chocolate factory lies in the special mixing ratios, which it has developed for different types of cocoa. Grinding
The crushed cocoa beans, which are still fairly coarse are now pre-ground by special milling equipment and then fed on to rollers where they are ground into a fine paste. The heat heat gene genera rate tedd by the the resu result ltin ingg pres pressu sure re and and fric fricti tion on caus causes es the the coco cocoaa butt butter er
16
(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:
17
Kneading
In the case of milk chocolate for example, the cocoa paste, cocoa butter, powdered or condensed milk, sugar and flavouring - maybe vanilla - go into the mixer, where they are pulverized and kneaded. Rolling
Depending on the design of the rolling mills, three or five vertically mounted steel rollers rotate in opposite directions. Under heavy pressure they pulverise the tiny particles of cocoa and sugar down to a size of approx. 30 microns. (One micron is a thousandth part of a millimetre.) Conching
But still the chocolate paste is not smooth enough to satisfy our palates. But within two or three days all that will have been put right. For during this period the chocolate paste will be refined to such an extent in the conches that it will flatter even the most discriminating palate. Conches (from the Spanish word "concha", meaning a shell) is the name given to the troughs troughs in which 100 to 1000 kilograms of chocolate 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.
18
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 increasing the consumer base. Leading players like Cadbury and Nestle Nestle have been attempting to do this by value for money offerings, which are affordable to the masses.
19
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.
20
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
an d
b e v er a g e
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. 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 Comp Compan any’ y’ss
prod produc ucts ts,,
resp respon onsi sibi bili liti ties es,,
busi busine ness ss prac practi tice ces, s, ethi ethics cs and and
goal goals. s.
In 2004, Nestlé had around 247,000 employees worldwide, operated 500 factor factories ies in approx approx.. 100 countr countries ies and offere offeredd over over 8,000 8,000 product productss to mil millio lions ns of consume consumers rs uni univer versal sally ly.. The Compan Company’s y’s transp transpare arent nt busine business ss practi practices ces,, pio pioneer neering ing 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 nurture the sustainable sustainable economic economic development development of people, people, communiti communities es and nations. Above all, Nestlé is dedicated to bringing the joy of ‘Good Food, Good Life’ to people throughout their lives, throughout the world. Nestle’ Brands
Milk Products & Nutrition
Beverages
Prepared Dishes and Cooking Aids
Chocolates & Confectionary
21
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 22
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 with a ‘breaking' ritual attached to it. NESTLÉ NESTLÉ KIT KAT is one of the most successful successful brands in the world and every year over 12 billion NESTLÉ KIT KAT fingers are consumed around the globe.
23
NESTLE MUNCH
NESTLÉ MUNCH is wafer layer covered with delicious choco layer. NESTLÉ MUNCH is so crisp, light and irresistible that you just ‘can't stop Munching.' NESTLÉ MUNCH is the largest selling SKU in the category! NESTLE MILKY BAR:
NESTLÉ MILKYBAR is a delicious milky treat, which kids love. Relaunched in January 2006 with a Calcium Rich recipe, NESTLÉ MILKYBAR is a favorite with parents to treat their kids with. NESTLE BAR-ONE
is a luscious nougat and caramel with delicious choco layer. NESTLÉ BAR-ONE constantly reminds you that it is ‘Time for Action'. NESTLE Milk Chocolate:
NESTLÉ Milk Chocolate is a milk chocolate with a delicious taste. Kids just love it!
24
CADBURY
How Cadbury Chocolate is made
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,
r e n ow n e d
for
their
milk
chocolate.
Led by George Cadbury Junior, the Bournville experts set out to meet the challenge. A considerable amount of time and money was spent on research and on new plant designed to produce the chocolate in larger quantities. A recipe recipe was formul formulate atedd incorp incorpora oratin tingg fresh fresh mil milk, k, and product production ion proces processes ses were 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. 25
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 compan companyy-own owned ed manuf manufact actur urin ingg faci facili liti ties es at Than Thane, e, Indur Indurii (Pune (Pune)) and and Mala Malanpu npur r (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 Can dy category. In the Chocol Chocolate ate Confec Confecti tioner oneryy busine business, ss, Cadbur Cadburyy has mainta maintained ined its its undispu undisputed ted 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 Cadbu Cadbury ry bran brandd shar sharee in the the world world!! Thei Theirr flags flagshi hipp bran brandd Cadbu Cadbury ry Dair Dairyy Milk Milk is considered the "gold standard" for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian consumer. 26
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 development of Bytes. Bytes. Crispy wafers filled filled with coca cream in the form of a bagged snack, Bytes is positioned as "The new concept of sweet snacking". It delivers the taste of chocolate in the form of a light snack, and thus heralds the entry of Cadbury India into the growing bagged Snack Market, which has been dominated until now by Salted Bagged Snack Brands. Bytes was first launched in South India in 2003. Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over two decades, it has worked with the Kerala Agriculture University to undertake cocoa research and released clones, hybrids that improve the cocoa yield. Today, Cadbury is poised in its leap towards quantum growth and new categories of busi busine ness ss,, name namely ly gums gums,, mint mints, s, snac snacki king ng and and gift giftin ing. g. It is a part part of the the Cadbu Cadbury ry 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. world. We employ employ around around 60,00 60,00 people. people.
27
Their heritage starts back in 1783 when Jacob Schweppe perfected his proces processs for manufa manufactu cturin ringg carbona carbonated ted min minera erall water water in Geneva Geneva,, Switze Swi tzerla rland. nd. And in 1824 John John Cadbur Cadburyy opened opened in Birmin Birmingham gham 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 empl employ oy 60,0 60,000 00 peop people le in over over 200 200 cou count ntri ries es
-
Worlds No No 1 Co Confectione onery co company
-
World's No 2 Gums company
-
World's No No 3 beverage co company
Cadbury Brands:
Chocolates
Snacks
Beverages
Candy
SNACKS:
Bytes BEVERAGES
Bournvita
28
CANDY
Halls CHOCOLATES
Dairy Milk 5 Star Perk Celebrations Temptation Eclairs Gems
29
DAIRY MILK
The
story
Cadb adbury
of Dairy
Milk started way back in 1905 at Bournville, Bournville, U.K., but the journey 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 cho colate market.
30
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.
31
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 ' 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
32
Cadb adbury Tempta ptations is a range of delicious ous premium chocol colate in five flavors variants - Roast Almond Coffee, Honey Apricot, Mint Crunch, Black Forest and Old Jamaica.
III. REVIEW OF LITRATURE
33
REVIEW OF LITERATURE A literature review discusses published information in a particular subject area, and sometimes information in a particular subject area within a certain time period. A literature review can be just a simple summary of the sources, but it usually has an organizational pattern and combines both summary and synthesis. A summary is a recap or the important information of the source, but a synthesis is a re-organization, or a reshuffling, of that information. It might give a new interpretation of old material or combine new with old interpretations. Or it might trace the intellectual progression of the field, including major debates. And depending on the situation, the literature review may evaluate the sources and advise the reader on the most pertinent or relevant. Purpose of review of Literature is to provide a backdrop of the present study. It is the context to which our present study can be referred to determine its relevance
34
IV.
RESEARCH METHODOLOGY
35
RESEARCH METHODOLOGY This chapter describes the methodology of the study. This project is based on information collected from primary sources. After the detailed study, an attempt has been made to prese present nt compre comprehens hensive ive analysi analysiss of consump consumptio tionn of Cadbur Cadburyy and nestl nestlee chocol chocolate atess consu consume medd by the the peop people le.. The The data data had had been been used used to cover cover vari variou ouss aspe aspect ctss like like consumption, consumer’s preference and customer’s satisfaction regarding Cadbury and Nestle Nestle chocola chocolates tes.. In collec collectin tingg requis requisite ite data data and inform informati ation on regard regarding ing the top topic ic selected, I went to the residents of Chandigarh 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
36
Data Collection:
The data, which is collected for the purpose of study, is divided into 2 bases:
Primar Primary y
Source: Source:
The The prim primar aryy data data comp compri rise sess info inform rmat atio ionn surv survey ey of
“Com “Compa para rati tive ve stud studyy of consu consume merr behav behavio iorr towar towards ds Nest Nestle le and and Cadbu Cadbury ry 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 & pie technique.
37
SCOPE OF THE STUDY As learning is a human activity and is as natural, as breathing. Despite of the fact that learning is all pervasive in our lives, psychologists do not agree on how learning takes place. How individuals learn is a matter of interest to marketers. They want to teach consumers in their roles as their roles as consumers. They want consumers to learn about their products, product attributes, potential consumers benefit, how to use, maintain or even dispose of the product and new ways of behaving that will satisfy not only the consumer’s needs, but the marketer’s objectives. The scope of my study restricts itself to the analysis of consumer preferences, perception and consumption of Cadbury and Nestle Chocolates. There are many other brands of chocolates available but my study is limited to two major players of chocolates leaving behind the others. The scope of my study is also restricts itself to CHANDIGARH region only.
38
V.
OBJECTIVES OF THE STUDY
39
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 The othe otherr obj objec ecti tive ve is to know know about about the the cust custom omer er sati satisf sfact actio ionn leve levell 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.
40
VI.
ANALYSIS & FINDINGS
41
ANALYSIS OF THE STUDY LIKING FOR THE CHOCOLATES Table:1 Liking for the Chocolate
Yes
No
Number of Respondents
95
5
Fig:1
From the above analysis, it can be concluded that out of 100 people 95% people likes to eat chocolate while only 5% people do not like to eat chocolate.
42
PREFERENCE OF CHOCOLATES BY DIFFERENT AGE GROUP
Table:2 AGE GROUPS NUMBER OF
0-10
10-20
20-30
ABOVE 30
14
42
33
11
RESPONDENTS
Fig:2
According to the above analysis, it can be concluded that people whose age is between 10-20 years like to eat chocolates more than people who are in the age group of above 30 years.
43
PREFERENCE OF BRAND AS PER AGE GROUPS
Table:3 AGE GROUPS BRANDS CADBURY NESTLE NO CONSUMPTION
0-10
10-20
20-30
ABOVE 30
7 5 2
35 6 1
24 8 1
5 5 1
Fig:3
It can be inferred inferred from the above table that people of different age groups prefer to eat Cadbury brand of chocolate rather than Nestle brand.
44
PURCHASE DECISSION OF SUB BRANDS OF CADBURY
Table:5 SUB- BRANDS DAIRY MILK 5 STAR PERK CELEBRATIONS TEMPTATIONS
CADBURY CHOCOLATES NUMBER OF RESPONDANTS
69 64 61 49 41
Fig:5
As per the survey, itit was found that out of 73% of people who prefer Cadbury over Nestle , likes to eat diary milk and Five star as their sub brands.
PURCHASE OF NESTLE CHOCOLATES
45
Table:6 SUB- BRANDS KIT KAT MUNCH MILKY BAR BAR- ONE MILK CHOCOLATE
NESTLE CHOCOLATES NUMBER OF RESPONDANTS
17 19 18 16 11
Fig:6
As per the survey it was found that out of 22 respondents who eat Nestle chocolates mostly buy Munch , followed followed by Milky Bar and Kit Kat., While most of the peopleare not aware about the Milk chocolates.
OVERALL PURCHASE OF CHOCOLATES
Table:7 OVERALL PURCHASE OF SUB- BRANDS OF CHOCOLATES
46
SUB-BRANDS DAIRY MILK 5 STAR PERK CELEBRATIONS TEMPTATIONS KIT KAT MUNCH MILKY BAR BAR ONE MILK CHOCOLATE
PERCENTAGE OF PURCHASE
13 12 11 9 7 10 11 11 9 7
Fig:7
From above data it is concluded that overall Dairy Milk is purchased by people followed by 5 Star while Temptation and Milk Chocolate Choc olate is least purchased by people.
FORM PREFERENCE
Table:8 FORM OF CHOCOLATE
NUMBER
OF
RESONDENTS HARD NUTTIES CRUNCHY
33 25 29 47
CHEW
20
Fig:8
It is concluded from the above data that People normally prefer hard form of chocolates rather than Chew
PACK OF CHOCOLATES PREFERED
Table:9 PACK SIZE SMALL BIG FAMILY PACK
NUMBER OF RESPONDENTS
28 48 19
48
Fig:9
The above data concludes that out of sample of 95 people who eat chocolates, likes to buy big pack rather than a small pack as it is a cost savvy.
PROMOTIONAL OFFERS
Table:10 PROMOTIONAL OFFERS FREE GIFTS PRICE OFFER ANY OTHER
NUMBER OF RESPONDENTS
52 23 20
49
Fig: 10
From the above it is concluded that out of sample of 95 people who eat chocolate 52 are attracted by free gifts, 23 by price offers while 20 were attracted by some other reasons.
FACTORS AFFECTING PURCHASE
Table:11 FACTORS
NUMBER OF RESPONDENTS
ADVERTISEMENT SUGGESTION FROM FRIENDS ATTRACTIVE DISPLAY BRAND AMBASSADORS
65 16 11 9
50
Fig: 11
As per survey it is concluded that Advertisement Ad vertisement is the best measure to attract customers to purchase more and more . Its impact is much more than any other source .
MEDIA OF ADVERTISEMENT
Table:12 MEDIA OF ADVERTISEMENT TELEVISION NEWSPAPERS BROCHURES HOARDING DISPLAY
NUMBER OF RESPONDENTS
74 5 1 3 12
51
Fig:12
From the above data it is concluded that television emerges as the best media for advertisement of chocolates that creats an urge in consumers to buy chocolates .
FREQUENCY OF CONSUMPTION
Table:13 FREQUEN UENCY OF OF CO CONSUM SUMPTION ONCE IN A FORTNIGHT DAILY WEEKLY MONTHLY QUARTERLY
NUMBER OF OF RE RESPO SPONDENTS
16 17 39 18 5
52
Fig:13
According to the data it is concluded that mostly people purchase chocolates on a weekly basis . Only 15 out of 95 purchase chocolates quarterly.
REASONABLE PRICE
Table:14 PRICE OF CHOCOLATE BELOW 5 5-10 10-20 20-30 ABOVE 30
NUMBER OF RESPONDENTS
6 23 51 4 11
53
Fig: 14
It is concluded that the consumer con sumer thinks 10-20 Rs is the reasonable price of a chocolate. So it must be worthwhile to know this as it may effect the sale of chocolates.
CONSUMER’S BRAND LOYALTY
Table:15 BRAND LOYALTY ACTIONS POSTPONE YOUR PURCHASE SWITCH OVER TO OTHER BRANDS GO TO OTHER SHOP FOR SEARCH
NUMBER OF RESPONDENTS
26 24 45
OF PREFERED BRAND
54
Fig:15
It is is concluded that most of the the people are are brand loyal and in the absence of availability of their preferred brand , most of the people like to search for it or they are ready to postpone their purchase.
REACTION OF CONSUMERS IF NEW BRAND IS INTRODUCED
Table:16 SHIFT TO NEW BRAND OF THE
NUMBER OF RESPONDENTS
PREFERED PRODUCT NO, NOT AT ALL MAY CONSIDER NO, SHALL NOT CAN’T SAY
35 27 4 29
55
Fig:16
It is concluded that mostly people are addicted to the same flavor or taste and they are not receptive about the new brand introduced.
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
56
Chi-Square Test
Frequencies
Do you eat chocolate?
Observed N Expe xpected N Residua dual yes 95 50.0 45.0 no 5 50.0 -45.0 Total 100
57
Which promotional offers attract you most?
Obse Observ rved ed N Free gifts 52 Price Offer 23 Any other 20 Total 95
Expe Expect cted ed N 31.3 31.3 31.3
Resi Residu dual al 20.7 -8.3 -12.3
Which of these factors affect your purchase?
Obse Observ rved ed N Advertisement 64 Suggestion from friend 16 Attractive Display 12 Brand Ambassadors 8 Total 10 0
Expec Expecte tedd N 25.0 25.0 25.0 25.0
Resi Residu dual al 39.0 -9.0 -13.0 -17.0
Which media of advertisement influence your purchase?
Obse Observ rved ed N Television 74 Newspapers 5 Brochures 1 Hoarding 3 Display 12 Total 95
Expe Expect cted ed N 19.0 19.0 19.0 19.0 19.0
Resi Residua duall 55.0 -14.0 -18.0 -16.0 -7.0
If your preferred brand is not available for repeat purchase then what will you do?
Observed N Postpone your purchase 26 Switch over to other brand 24 Go to the other shop to search 45 for your preferred brand Total 95
Expected N 31.7 31.7 31.7
Residual -5.7 -7.7 13.3
Test Statistics
Do you eat Which chocolate? promotional offers attract you most?
Which of these factors affect your purchase?
Which media of advertisement influence your purchase?
If your preferred brand is not available for repeat purchase 58
then what will you do? 8.484e
Chi81.000a 20.702 b 82.400c 202.632d Square df 1 2 3 4 2 Asymp. .000 .000 .000 .000 .014 Sig. a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 50.0. b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 31.3. c. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 25.0. d. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 19.0. e. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 31.7.
FINDINGS
CONSUMER RESEARCH:
Consumer research deals with consumer and their problems and solution to the problems. In this I came to know about the consum consumers ers need need and expecta expectatio tionn levels levels regard regarding ing produc products ts and ascert ascertain ainabl ablee levels of consumer satisfaction.
PRODUCT RESEARCH:
59
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.
60
VII.
LIMITATIONS OF THE STUDY
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 job 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 selfadministered questionnaires. Hence, the chances of unbiased information are less.
People were hesitant to disclose the true facts. 61
The chance of biased response can’t be eliminated though all necessary steps were taken to avoid the same.
62
VII.
CONCLUSION
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 chocolate with good flavor, quality and crunchiness so they are going towards Kit Kat and Munch of Nestle due to its taste and crunchiness.
63
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.
64
IX.
SUGGESTIONS & RECOMMENDATIONS
\
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. 65
People are unsatisfied with the price and quantity qua ntity of chocolate so companies should concentrate in this regard also.
66
XI.
BIBLIOGRAPHY
BIBLIOGRAHY
http://www.cadburyindia.com
http://www.nestle.com
http://www.aphrodite-chocolates.co.uk/h http://www.aphrodi te-chocolates.co.uk/history_chocolate.htm istory_chocolate.htm
http://www.cadbury.co.nz/carnival/index.htm
http://www.packaging-technology.com/…/cadbury4.html http://www.packaging -technology.com/…/cadbury4.html 67
http://www.chocolatereview.co.uk
http://en.wikipedia.org/wiki/preference
CR Kothari Research Methodology from library
68
XI. ANNEXURE
QUESTIONNAIRE
“COMPARATIVE ANALYSIS OF CUSTOMER BUYING BEHAVIOUR TOWARDS CADBURY AND NESTLE” Que1. Do you eat chocolate? Y es
No
Que2. Which brand of chocolate do you prefer?
69
Cadbury
Nestle
Que3. Which sub-brand you have purchased? Cadbury
Nestle
Dairy Milk
Kit Kat
5Star
Mun c h
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
Mun c h
Perk
Milky Bar
Celebrations
Bar-One
Temptation
Milk Chocolate
Que7. Which form of a chocolate do you like? Hard
Nutties
Crunchy
Ch e w
Que8. What pack do you purchase? Small
Big
Family Pack
70
Que9. Which promotional offers attract you most? Free gifts Price Offer Any other Que10.Which of these factors affect your purchase? Advertisement
Suggestion from friend
Attractive Display
Brand Ambassadors
Que11. Which media of advertisement influence your purchase? Television N e w s p a p e rs Brochures Hoarding
Display
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 does? Postpone your purchase
Switch over to other brand
Go to the other shop to search for your preferred brand
Que15. If another brand of o f the same product appears in the market, will you prefer to stop buying this brand and buy the new brand? 71
No, not at all No, I shall not
I may consider 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?
PERSONAL DETAILS Name: Address: Age:
Between 0-10 Between 20-30
Between10-20 Above 30
Gender: Phone Number: Marital status: Education: Profession:
72
