MINOR PROJECT REPORT ON COMPARITIVE STUDY OF MARKETING STRATEGY OF NESTLE AND CADBURY Submitted to:
Submitted By:
DR. RAJEEV DAHIYA
PAVIT KOHLI
Assistant Professor
Enrolment no. 0501491713
Dept. of Business Administration
BBA (GEN) 3rd Semester
Department of Business Administration MAHARAJA SURAJMAL INSTITUTE (Affiliated to Guru Gobind Singh Indraprastha University) ( Recognised by UGC u/s 2 (f)) C-4, Janakpuri , New Delhi -110058 Session- 2013-2016
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CERTIFICATE
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ACKNOWLEDGEMENT A project can never become a success with efforts of only one individual. It requires a group of people to complete a project at its best and it's my friends, my teachers and my family members who have helped me complete my project report. The present work is just an effort to throw some light on ‘COMPARITIVE STUDY OF MARKETING STRATEGY OF NESTLE AND CADBURY’. The work would not have been possible to come to the present shape without the guidance, supervision and help of number of people. With deep sense of gratitude I acknowledge the encouragement and guidance received from DR. RAJEEV DAHIYA, PROFESSOR, DEPT. OF BUSINESS ADMINISTRATION and other staff members. I convey my heartfelt thanks to all those people who helped and supported me during the course of completion of my project.
PAVIT KOHLI ENROLL NO 0501491713 COURSE: BBA(GEN) 3RD SEM
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TABLE OF CONTENT S.no
Chapters
Particulars
Pg.no
1.
Chapter 1
INTRODUCTION
(5-17)
2.
3.
Chapter 2
Chapter 3
11 Significance of the study 12 Objective 12 Research methodology 17 Limitations
Company profile And SWOT Analysis
(18-27)
Analysis & Interpretation (28-40) of data
4.
Chapter 4
Conclusion and
(41-46)
Recommendation
Annexure Bibliography Questionnaire
43 44
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CHAPTER-1 INTRODUCTION 1.1 SIGNIFICANCE OF THE STUDY 1.2 OBJECTIVES 1.3 RESEARCH METHADOLOGY 1.4 LIMITATIONS
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1. INTRODUCTION In this research we have surveyed the product performance and buying behavior of two famous brands of chocolate- nestle and Cadbury, which are consumed by people of all ages. During this research I have interacted with people of “Delhi”. After this research I came to know how people perceives these product on the variable like price, quality, advertisement, satisfaction, taste, packaging, brand loyalty etc. and I also came to know which particular brand of chocolate is preferred by people of different age groups. In this research I have also surveyed that how frequently and how much chocolates they consume, trend of ongoing changing their likings has been shown in this report.
History Of Nestle Nestlé’s origins date back to 1866, when two separate Swiss enterprises were founded that would later form the core of Nestlé. In the succeeding decades, the two competing enterprises aggressively expanded their businesses throughout Europe and the United States. In August 1867, Charles (US consul in Switzerland) and George Page, two brothers from Lee County, Illinois, USA, established the Anglo-Swiss Condensed Milk Company in Cham, Switzerland. Their first British operation was opened at Chippenham, Wiltshire, in 1873.
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In September 1866, in Vevey, Henri Nestlé developed a milk-based baby food, and soon began marketing it. The following year saw Daniel Peter begin seven years of work perfecting his invention, the milk chocolate manufacturing process. Nestlé’s was the crucial cooperation that Peter needed to solve the problem of removing all the water from the milk added to his chocolate and thus preventing the product from developing mildew. Henri Nestlé retired in 1875 but the company, under new ownership, retained his name as SociétéFarineLactée Henri Nestlé. In 1877, Anglo-Swiss added milk-based baby foods to their products; in the following year, the Nestlé Company added condensed milk, such that the firms became direct and fierce rivals. In 1905, the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk Company, retaining that name until 1947, when the name ‘Nestlé Alimentana SA’ was taken as a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding company, Alimentana SA, of Kempttal, Switzerland. Maggi was a major manufacturer of soup mixes and related foodstuffs. The company’s current name was adopted in 1977. By the early 1900s, the company was operating factories in the United States, the United Kingdom, Germany, and Spain. The First World War created demand for dairy products in the form of government contracts, and, by the end of the war, Nestlé’s production had more than doubled. Nestlé felt the effects of the Second World War immediately. Profits dropped from US$20 million in 1938, to US$6 million in 1939. Factories were established in developing countries, particularly in Latin America. Ironically, the war helped with the introduction of the company’s newest product, Nescafé (“Nestlé’s Coffee”), which became a staple drink of the US military. Nestlé’s production and sales rose in the wartime economy. After the war, government contracts dried up, and consumers switched back to fresh milk. However, Nestlé’s management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestlé’s first expansion into new products, with chocolate-manufacture becoming the company’s second most important activity. Louis Dapples was CEO till 1937, when succeeded by Édouard Muller till his death in 1948. The end of World War II was the beginning of a dynamic phase for Nestlé. Growth accelerated and numerous companies were acquired. In 1947 Nestlé merged with Maggi, a manufacturer of seasonings and soups. Crosse & Blackwell followed in 1950, as did Findus (1963), Libby’s (1971) 7
and Stouffer’s (1973). Diversification came with a shareholding in L’Oreal in 1974. In 1977, Nestlé made its second venture outside the food industry, by acquiring Alcon Laboratories Inc. In the 1980s, Nestlé’s improved bottom line allowed the company to launch a new round of acquisitions. Carnation was acquired for $3 billion in 1984 and brought the evaporated milk brand, as well as Coffee-Mate and Friskies to Nestlé. The confectionery company Rowntree Mackintosh was acquired in 1988 for $4.5 billion, which brought brands such as Kit Kat, Smarty's and Aero. The first half of the 1990s proved to be favorable for Nestlé. Trade barriers crumbled, and world markets developed into more or less integrated trading areas. Since 1996, there have been various acquisitions, including San Pellegrino (1997), Spillers Pet foods (1998), and Ralston Purina (2002). There were two major acquisitions in North America, both in 2002 – in June, Nestlé merged its U.S. ice cream business into Dreyer’s, and in August a US$2.6 billion acquisition was announced of Chef America, the creator of Hot Pockets. In the same time-frame, Nestlé came close to purchasing the iconic American company Hershey’s, one of its fiercest confectionery competitors, although the deal eventually fell through. Another recent purchase included the Jenny Craig weight-loss program, for US$600 million. In December 2005, Nestlé bought the Greek company Delta Ice Cream for €240 million. In January 2006, it took full ownership of Dreyer’s, thus becoming the world’s largest ice cream maker, with a 17.5% market share. In November 2006, Nestlé purchased the Medical Nutrition division of Novartis Pharmaceutical for US$2.5 billion, also acquiring, in 2007, the milk-flavouring product known as Ovaltine. In April 2007, returning to its roots, Nestlé bought US baby-food manufacturer Gerber for $5.5 billion. In December 2007, Nestlé entered into a strategic partnership with a Belgian chocolate maker, Pierre Marcolini. Nestlé agreed to sell its controlling stake in Alcon to Novartis on 4 January 2010. The sale was to form part of a broader US$39.3 billion offer, by Novartis, for full acquisition of the world’s largest eye-care company. On 1 March 2010, Nestlé concluded the purchase of Kraft Foods's North American frozen pizza business for $3.7 billion.
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In July 2011, Nestlé SA agreed to buy 60 percent of Hsu Fu Chi International Ltd. for about $1.7 billion. On 23 April 2012, Nestlé agreed to acquire Pfizer Inc.'s infant-nutrition unit for $11.9 billion. Before the acquisition, there was a 'bidding war' between the three shareholders Nestlé, Mead Johnson Nutrition and DANONE. Each of the companies held a share, with Nestlé holding the biggest share (17%) (Johnson held 15%, DANONE 13%). As of 28 May 2013, Nestlé has announced that it will expand R&D in its research center in Singapore. With a primary focus on health and nutrition, Nestlé is investing $4.3 million in its Singapore center, creating 20 jobs for experts in related R&D fields. In 2013 Nestlé Nigeria successfully pioneered and implemented the use of compressed natural gas as a fuel source to power their Flower gate factory.
History of Cadbury In 1824, John Cadbury began selling tea, coffee, and drinking chocolate in Bull Street in Birmingham, England. From 1831 he moved into the production of a variety of cocoa and drinking chocolates, made in a factory in Bridge Street and sold mainly to the wealthy because of the high cost of production.In 1847 John Cadbury became a partner with his brother Benjamin and the company became known as "Cadbury Brothers". The brothers opened an office in London, and in 1854 they received the Royal Warrant as manufacturers of chocolate and cocoa to Queen Victoria. The company went into decline in the late 1850s. John Cadbury's sons Richard and George took over the business in 1861. At the time of the takeover, the business was in rapid decline: the number of employees had reduced from 20 to 11, and the company was losing money. By 1864 Cadbury was profitable again. The brothers had turned around the business by moving the focus from tea and coffee to chocolate, and by increasing the quality of their products. Nestle
and
Cadbury
are
the
two
of
the
world's
leading
chocolate
brands.
With the entry of multinationals and home companies sprucing up their act, the confectionery market is booming. McKinsey & Co. has estimated the confectionery industry to touch a whopping Rs. 10, 500 crore by the year 2018. Till the eighties, the chocolate market was small and the product category 9
itself was fuzzy. In the eighties, Cadbury’s - the virtual monopolist - had decided to focus its efforts on making chocolates a distinct category with an identity of its own. And the marketer had sharply positioned its product at children to do that. Hence, chocolates bore an “Only for kids” tag, and kept adults at bay. By the end of the eighties, Cadbury’s still ruled the roost with over 80 percent market share. And though several brands - like Amul and Campco - tried to break into the market, none of them had succeeded in shaking the leader’s grip. In fact, Cadbury’s had become a brand virtually generic to chocolates. Then chocolates were used to reward and reinforce positive behavior and hence were categorized as a luxury reserved for special occasions. This was, a stark contrast to the west where chocolates were snacked on, eaten as mini meals or just to suppress pangs of hunger. But constant working by players like Cadbury’s (re-launch of Cadbury’s Dairy Milk targeting adults and as a casual any-time buy) and Nestle towards exploding the myth that chocolates are meant for children only, has resulted in the segment booming. Trends in the Industry • With socio-economic changes rapidly taking place, the young and not so young population will lead a new life style and chocolate eating is definitely going to be widespread and acceptable. • In the industry, both population and family incomes as well as urbanization are on the increase. • There has been a significant growth in the middle class, with 5.8 million people having upgraded to the quoted middle class.• There is quantified data on FMCG usage having increased (NRS-VI & IRS’98 figures) Thanks to the above reasons the growth in the chocolate market is estimated to be at 22% in 2001. But marketers in the industry are looking forward to a much higher growth rate, as India’s per capita consumption of chocolates is only 15 grams. Versus 6 Kg in the west. The firm's first major breakthrough occurred in 1866 when Richard and George introduced an improved cocoa into Britain. A new cocoa press developed in the Netherlands removed some of the unpalatable cocoa butter from the cocoa bean. The firm began exporting its products in the 1870s.In the 1880s the firm began to produce chocolate confectioneries. In 1878 the brothers decided to build new premises in countryside four miles from Birmingham.The move to the countryside was unprecedented in business. Better transport access for milk that was inward shipped by canal, and cocoa that was brought in by rail from London, Southampton and Liverpool docks was taken into consideration. With the development of the Birmingham West Suburban Railway along the path of the Worcester and Birmingham Canal, they acquired the Bournbrook estate, comprising 14.5 acres (5.9 ha) of countryside 5 miles (8.0 km) south of the outskirts of Birmingham. Located next Stirchley Street railway station, which itself was opposite the canal, they renamed the estate Bournville and opened the Bourneville factory the following year. 10
In 1893, George Cadbury bought 120 acres (49 ha) of land close to the works and planned, at his own expense, a model village which would 'alleviate the evils of modern more cramped living conditions'. By 1900 the estate included 314 cottages and houses set on 330 acres (130 ha) of land. As the Cadbury family were Quakers there were no pubs in the estate. In 1897, following the lead of Swiss companies, Cadbury introduced its own line of milk chocolate bars. In 1899 Cadbury became a private limited company.
1.1 Significance of the study In today's time the Indian chocolate market is ruled by the two chocolate power houses of the world which are NESTLE and CADBURY. I have undertaken this project to compare both of these firms on the basis of their product mix, marketing mix and a comparative SWOT analysis. I am doing this project to get a better and a deeper knowledge about the marketing strategies of these firms and to find out which one is better out of the two.
1.2 OBJECTIVES
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This project is based upon the comparative study consumer behavior towards Cadbury and nestle chocolates. Objectives of the study are:
The 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 identify which brand is more consumed by the consumer. To find out the extent of brand loyalty.
1.2 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 comprehensive analysis on consumption of Cadbury and nestle chocolates consumed by the people. The data has been used to cover various aspects like consumption, consumer preference, satisfaction of customer regarding nestle and Cadbury chocolates. In collecting requisite data and information regarding the topic elected we went to the residents of people and collected the data.
Significance of research 12
1. To Gather Necessary Information Research provides you with all necessary information in field of your work, study or operation before you begin working on it. For example, most companies do research before beginning a project in order to get a basic idea about the things they will need to do for the project. Research also helps them get acquainted with the processes and resources involved and reception from the market. This information helps in the successful outcome of the project. 2. To Make Changes Sometimes, there are in-built problems in a process or a project that is hard to discover. Research helps us find the root cause and associated elements of a process. The end result of such a research invokes a demand for change and sometimes is successful in producing changes as well. For example, many U.N researches have paved way for changes in environmental policies. 3. Improving Standard Of Living Only through research can new inventions and discoveries come into life. It was C.V Raman’s research that prompted invention of radio communication. Imagine how you would have communicated had Graham Bell not come out with the first ever practical telephone! Forget telephones, what would have happened if Martin Cooper did not present the world the concept of mobile phones! Addicted as we are to mobile phones, we need to understand that all the luxuries and the amenities that are now available to us are the result of research done by someone. And with the world facing more and crisis each day, we need researchers to find new solutions to tackle them.
4. For A Safer Life Research has made ground breaking discoveries and development in the field of health, nutrition, food technology and medicine. These things have improved the life expectancy and health conditions of human race in all parts of the world and helped eradicate diseases like 13
polio, smallpox completely. Diseases that were untreatable are now history, as new and new inventions and research in the field of medicine have led to the advent of drugs that not only treat the once-incurable diseases, but also prevent them from recurring.
5. To Know The Truth It has been proved time and again that many of established facts and known truths are just cover ups or blatant lies or rumors. Research is needed to investigate and expose these and bring out the truth. 6. Explore Our History Research about our planets history and human history has enabled us to learn and understand more about our forefathers and helped us learn from their mistakes and absorb good things from their life. Research about the planet’s history and existence has told us a lot about how things will shape up in years to come and how we need to respect our planet and work closely together to stop global warming and other scenarios of destruction. 7. Understanding Arts This helps us in understanding the work of artists in literature, paintings, sculptures and everything that can be attributed with artistic touch. If no research is conducted into any of these, we will never be able to understand any of these as per the artist’s imagination. Also, a lot of great artistic work is hidden in the shadows of history, which needs to be drawn out.
1.2.1 RELEVANCE OF THE STUDY
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This research is been conducted to the product performance and buying behavior of consumer in selection of chocolates. The relevance of the study is the survey the product performance and buying behavior of two famous brands of chocolates- nestle and Cadbury, which are consumed by people of all age group. During this research is known which particular brand of chocolate is most preferred by people of different age groups.
1.2.2 RESEARCH DESIGN For any researcher the research methodology is most important criteria to decide before the actual research process starts. There are many methods for conducting the research; some of them are as under. a) Descriptive and analytical b) Applied and fundamental c) Quantitative and qualitative The design of a research is plan or a model that helps researcher to conduct a formal investigation and survey. It is an application of methods and procedures for acquiring the information needs for getting a desired outcome. It decides the source of data and methods for gathering data. A good design ensures that the information obtained is relevant to the research question and it was conducted by objectives since research design is simply the frame work or plan for a study. Out of these all research methods the research method, which was most suitable for our report was DESCRIPTIVE RESEARCH METHOD because it provides us all the aspects that we require to conduct the research and get an appropriate outcome.
1.2.3 DESCRIPTIVE RESEARCH METHOD Descriptive research Include surveys and facts finding enquires of different kinds. The major purpose of descriptive research is description of state of affairs as it exists at present.
1.2.4 DATA COLLECTION 15
The data has been collected from the two sources.
Primary sources Secondary sources
Primary data: the data which are collected for the first time, directly from the residents to the base of knowledge and believe of the research, are called the primary data. The normal procedure is to interview some people individually or in group to get a sense how people feel about the topic. So far as this research is considered, primary data is the main source of information by the respondents. Secondary data: when the data is collected and compiled in the published nature is called secondary data. So far as this research is concerned internet, many brochures and magazines have been referred too.
1.2.5 SAMPLE DESIGN It is true that it is very difficult to do research with whole universe. So far this purpose sample size is decided well in advanced and selection of the sample also has to be specific so that it represents the whole universe. Sample element: The members selected from the population for doing the survey constitute the sampling element. Sample Size: A sample of 100 customers was taken as a sample element. Sample area: Sample was taken only in North-Delhi to determine the attitude of customers towards importance of branding in modern marketing. Sample Technique: Convenience Sampling because of time and cost constraints.
1.2.6 INSTRUMENTS Taking into consideration research instruments is selected by us is questionnaire because it gives more flexibility in terms of the data and has been asked to the respondents personally and has an idea of getting an important unknown data that can be collected through their behavior. 16
Mode of collection data: data collection mode is personal visit and fulfilling up the questionnaire.
1.3 LIMITATION To attempt to make this project authentic and reliable, every aspect of the topic was kept in mind. Nevertheless, despite of the fact constraint were at play during the formulation of this project. The main limitations are as follows: a) Due to the limitation of time only few people were selected for the study. So the sample of consumer was not enough to generalize the finding of the study. b) The main source of data for the study was primary data with the help of self-administered questionnaire hence the chance of unbiased information is less. c) The study was conducted in the limited area so the limited are of the study may affect the conclusions. d) It might also be so that some respondents were not motivated enough to respond properly although full attempt was made to keep it unbiased as possible. e) The duration of the project was short, so the scope of more in-depth evaluation was not possible.
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CHAPTER-2 COMPANY PROFILE & SWOT ANALYSIS 2.1 NESTLE 2.2 CADBURY
2.1 NESTLE
NESTLE began its operations in Switzerland in the mid-1860s when founder Henry Nestle created one of the baby formulae. Henry realized the need for a healthy and economical product to serve as an alternative for mothers who could not breastfeed their babies. Mothers who were unable to 18
breastfeed often lost their infants due to malnutrition. Henrys product was a mixture of cow milk, flour and sugar. It was first use on pre-mature baby who could not tolerate his mother’s milk. Miraculously the baby tolerated Henry’s products and saved his life. Within a few years the first NESTLE product was marketed in whole Europe.
In 1905, the company added chocolate to its line of products. The start of world war-I made it difficult for NESTLE to buy raw ingredients and distribute products. Fresh milk was scares in Europe and the factories had to sell milk for public needs instead of using it as an ingredient in foods.
Adding to the product line once again, NESTLE developed Nescafe in the 1930s and Nestea followed after. Nescafe, a soluble powder, revolutionized coffee drinking and became an instant hit.
NESTLE expands across many different markets including beverages, ice cream, baby foods, soups, frozen foods, snacks and of course, candies.
NESTLE INDIA LTD. Nestle India Ltd is a subsidiary of NESTLE S.A. of Switzerland. With 7 factories and a large no. of co-packers. Nestle India is a vibrant company that provides consumers in India with products of global standards and is committed to long term sustainable growth and shareholders satisfaction. It employs 4983 employees.
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The company insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships. This has earned it the trust and respect of every strata of society and is acknowledged amongst India’s “most respected Companies” and amongst the “Top Wealth Creators of India”.
2.2 CADBURY
CADBURY began its operation in Birmingham, UK in the 1824 when founder was John Cadbury. Till the eighties, the chocolate market was small and the product category itself was fuzzy. In the eighties, Cadbury’s - the virtual monopolist – haddecided to focus its efforts on making chocolates a distinct category with anidentity of its own. And the marketer had sharply positioned its product atchildren to do that. Hence, chocolates bore an “Only for kids” tag, and keptadults at bay.By the end of the eighties, Cadbury’s still ruled the roost with over 80 percentmarket share. Cadbury’s had become a brand virtually generic to chocolates.Then chocolates were used to reward and reinforce positive behavior and hence were categorized as a luxury reserved for special occasions. This was,a stark contrast to the west where chocolates were snacked on, eaten as minimeals or just to suppress pangs of hunger.But constant working by players like Cadbury’s (re-launch of Cadbury’s 20
DairyMilk targeting adults and as a casual any-time buy) and Nestle towardsexploding the myth that chocolates are meant for children only, has resulted inthe segment booming. Cadbury’s India was set up at thane (Mumbai)in 1966. Today, the factory has grown manifold and manufactures a range of products that include Cadbury dairy milk, 5 stars, nutties, gems, and bournvita. Cadbury India continuously focuses on understanding changing life styles in India. This helps it to fore see needs in its products offering. The company innovates new products renovates existing ones providing with high quality, safe products at affordable prices.
Cadbury manufactures and sells confectionary products in New Zealand. The company's products comprise chocolate bars, blocks of chocolate, pre-teens confectionery, boxed chocolates, drinking chocolate, old gold, and candy confectionery products. It also offers coking products, such as Bourneville cocoa, baking chips, and baking chocolate products. The company was formerly known as Cadbury Limited and changed its name to Cadbury in January 2011. The company was incorporated in 1993 and is based in Dunedin, New Zealand. Cadbury operates as a subsidiary of Cadbury plc. 21
Cadbury Limited produces and sells confectionery products. The company offers chocolate bags, boxes, and tins; chocolate bars and drinks; and products for Easter, Halloween, and Christmas. It sells its products through retailers and online for customers in the United Kingdom and internationally. The company was founded in 1824 and is based in Uxbridge, United Kingdom. As of February 2, 2010, Cadbury Limited operates as a subsidiary of Mondelez International, Inc. Cadbury India Ltd. is a part of Kraft Foods. Cadbury India operates in five categories – Chocolate confectionery, Beverages, Biscuits, Gum and Candy. In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls, Éclairs, Bubbaloo, Tang and Oreo. Our core purpose "make today delicious" captures the spirit of what we are trying to achieve.
SWOT ANALYSIS 2.1.1 CADBURY 2.2.2 NESTLE 22
SWOT ANALYSIS SWOT analysis is strategies planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. A SWOT analysis first must start with defining a state or objective. A SWOT analysis may be incorporated in to the strategic planning model. Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from SWOTs. The strengths and weaknesses are internal to the organization while opportunities and threats are presented by the external environment to the organization. In order to understand the strengths and weaknesses of the brand as such I have carried out the SWOT analysis of the brands, as it exists today. The SWOT analysis would give indications as to how the marketing strategies should be planned. As talked about earlier, the chocolate market is on the growth stage of the life cycle. Hence it is important that the brand is marketed aggressively and its image is modified in such a way that it can 23
differentiate itself from the clutter of other brands that exist in themarket today. In order to carry out the SWOT analysis various people were consulted and inputs were obtained from the actual users. A very peculiar characteristic of the chocolate consumers as we found is that there is an overwhelming awareness among the users about different brands that exist in the market. There is however very little brand loyalty in users. People always are ready to try out new brands and keep on switching from one brand to another. This behavior poses lot of challenge, as the job of designing of marketing strategies becomes two fold. Firstly non-users are to be converted to users and more importantly the existing customers should are not be lost. The SWOT analysis has been done of two major companies i.e. Cadburys, and Nestle. They are the major players that cover approximately 95% of Indian chocolate market. The analysis will help to know what measure the chocolate companies in Indian market should take.
2.1.1 SWOT analysis of cadburys
Strength 1. Cadbury is a company, which is reputed internationally as the topmost chocolate provider in the world. 2. The brand is well known to people & they can easily identify it from others. 3. Cadbury the world leaders in chocolate, is a well-known force in marketing and distribution. 4. Users have a positive perception about the qualities of the brand. 5. Cadbury main strength is Dairy milk. Dairy milk is the most consumed chocolate in India. 6. By using popular models like Cyrus Brocha, Priety Zinta and others Cadburys has managed to portray a young and sporty image, which has resulted in converting buyers of other brands to become its staunch loyalists. 24
7. Cadbury has well-adjusted itself to Indian custom. 8. It has properly repositioned itself in India whenever required i.e. from children to adults, togetherness bar to energizing bar for young ones etc.
Weaknesses 1. There is lack of penetration in the rural market where people tend to dismiss it as a high end product. It is mainly found in urban and semi-urban areas. 2. It has been relatively high priced brand, which is turning the price conscious customer away. 3. People avoid having their chocolate thinking about the egg ingredients.
Opportunities 1. The chocolate market has seen one of the greatest increases in the recent times (almost @ 30%) 2. There is a lot of potential for growth and a huge population who do not eat chocolates even today that can be converted as new users.
Threat 1. There exists no brand loyalty in the chocolate market and consumers frequently shift their brands. 2. New brands are coming and existing brands are introducing new variants to add up to an already overcrowded market.
2.2.2 SWOT Analysis of Nestlé’s
Strength 25
1. Nestle has positioned themselves very well with all the variety of products. 2. Nestle is a company, which is reputed internationally as the topmost food products provider in the world. 3. The brand is well known to people & they can easily identify it from others. 4. They are well known for providing topmost quality products. 5. Nestles main strength is coffee as it is most consumed in India and abroad too. 6. It is well known for its distribution network in Indian market. 7. The prices of chocolates of Nestles are comparatively cheap as compared to other companies.
Weaknesses 1. The major weakness is that Nestle does not aim equally at all products. Its main strength has only been coffee and not chocolates also. 2. There is lack of penetration of chocolates in the rural market where people tend to miss the chocolate. There is big scope for chocolate in rural market. 3. Even this brand has failed to provide pure vegetarian chocolates in India as per the culture.
Opportunities 1. There is a lot of potential for growth and development as huge population stay in rural market where other companies are not targeting. 2. Aim their product as per Indian custom and can capture the non-consumers of chocolates. 3. The chocolate market is at growth stage with very less competition so by introducing new brand and advertising there can be a very good scope in future. 26
Threat 1. There exists no brand loyalty in the chocolate market and consumers frequently shift their brands. 2. The competition is a great threat for the company in chocolate segment. 3. New small companies entering Indian market may take away the market share.
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CHAPTER -3 DATA ANALYSIS
DATA ANALYSIS 1. DO YOU EAT CHOCOLATES? YES ( )
NO ( ) 27
ANALYSIS: There is no doubt about this question as there was no sample found who disliked chocolates as the survey was on specific group i.e.; younger generation. 2. IF YES, HOW OFTEN DO YOU EAT CHOCOLATES? ONCE A DAY ( ) 2/3 TIMES A DAY ( ) OCCASIONALLY ( )
1/2 TIMES A WEEK ( )
1/2 TIMES A MONTH ( ) OPTION ONCE A DAY 2/3 TIMES A DAY OCCASIONALLY 1/2 TIMES A WEEK
RESPONSE 50 0 30 20 28
1/2 TIMES A MONTH TOTAL
0 100
ANALYSIS: Near about half of the samples found consuming the chocolate once a day followed by consuming chocolates occasionally.
3. HOW MUCH DO YOU ENJOY CHOCOLATES? STRONG LIKING ( ) AVERAGE ( ) STRONG DISLIKE ( ) CANN’T SAY ( )
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ANALYSIS: 95% of the samples having strong liking towards the chocolates and only 5% having a strong liking towards chocolates.
4. WHICH OF THE FOLLOWING FLAVORS DO YOU LIKE THE MOST IN CHOCOLATES?
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ANALYSIS: In both the flavors the nuts chocolates were having preferably more liking from people followed by toffee and milk.
5. WHAT WOULD ATTRACT YOU TO TRY OUT NEW CHOCOLATES BAR IN THE MARKET? SAMPLE TASTE ( ) PROMOTIONAL ACTIVITIES ( ) CHEAPER PRICE ( ) ADVERTISING CAMPAIGN ( )
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ANALYSIS: It shows consumer will be attracted by good taste.
6. ARE YOU AWARE ABOUT THE NESTLE CHOCOLATES? YES ( ) NO ( ) 32
ANALYSIS: The above chart represents that the samples are aware about the nestle chocolates which implies good advertising effectiveness and well channel of distribution.
7. PLEASE RANK THE FOLLOWING IN ACCORDANCE TO YOUR PREFERENCE. (From 1 to 6) NESTLE CADBURY MUNCH 5 STARS KITKAT DAIRY MILK ECLAIRS PERK
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ANALYSIS: It is clear from the above chart that dairy milk stands first among the people of Delhi followed by kit Kat and munch consequently.
8. IN COMPARISON WITH NESTLE, IS THE SIZE OF CADBURY CHOCOLATES IS JUSTIFIABLE TO ITS PRICE?? YES ( )
NO ( )
34
ANALYSIS: The size of Cadbury chocolates is more justifiable than nestle chocolates.
9. IN COMPARISON OF PRICE VALUES PLEASE SHARE YOUR VIEWS.
35
ANALYSIS: chart shows that prices of nestle chocolates are more reasonable than that of Cadbury so in terms of price comparison nestle stands among people.
10. IN COMPARISON TO NESTLE, DOES CADBURY HAVE GOOD ADVERTISING EFFECTIVENESS? YES ( ) NO ( )
36
ANALYSIS: Survey suggests that Cadbury has been successful in attracting customers by way of advertising though there is a slight difference.
11. DO YOU THINK THAT BRAND AMBRESSDOR OF THE COMPANY’S HAVE IMPACT ON CUSTOMER PREFRENCE? YES ( )
NO ( )
37
ANALYSIS: Most of the people think that brand Ambassador Has influence on customer’s mind.
12. IN SALES PROMOTION WHICH ONE IS BETTER IN YOUR VIEW? NESTLE ( )
CADBURY ( )
38
ANALYSIS: In sales promotion there is no significant difference between nestle and Cadbury. 13. PLEASE GIVE YOUR OVERALL RATING TO THE FOLLOWING. NESTLE ( ) CADBURY ( )
39
ANALYSIS: By concluding the overall survey I can conclude that both the brands have been succeeded to win over the minds of the people. The above chart shows the Nestle is number one brand in the market.
40
CHAPTER-4 RECOMMENDATIONS AND CONCLUSION
RECOMMENDATION Chocolate products at Delhi city are available in comparison to previous years but still there is requirement in chocolate products. Due to increasing overall cost in chocolates products everywhere, cost format should be made as such that it is affordable to each and everyone in the society. In this we also found that if the demanded brand is not available so at that time, the customer switch over the brand of the chocolate so, here the company should build up the healthy distribution channel by which company can attract the customer and company loose the fear from market. Company should concentrate more on television for advertisement, as mostly people get attracted through television only for promotional offers, company should concentrate on its free gifts rather than going for other ways. Nestle company should concentrate on the shape of a chocolate. People 41
are unsatisfied with the price and quality of chocolate so companies should concentrate this regard also
CONCLUSION A survey has been conducted to know the liking pattern of the two products Cadbury and nestle. It has observed that overall people like to eat nestle brand rather than Cadbury. It is concluded that mostly people preferred dairy milk of Cadbury due to its flavor, taste, and quality hard form. Some people often like to have a chocolate with the good flavor, quality taste and crunchiness. It is thus concluded from the facts collected that mostly people refer to buy big packs of their favorite chocolate and sometimes some of them go for the small and family pack.
BIBLOGRAPHY The essence of the report, are inspired and collected by these sources, listed in this chapter, not fully but partially as advisory notes. BOOKS: ESSENTIAL OF MANAGEMENT CONCEPT -KOONTZ O DONNEL MARKETING MANAGEMENT – PHILIP KOTLAR MARKETING MANAGEMENT - RAMASWAMY NAMAKUMARI RESEARCH METHODOLOGY - C R KOTHARI 42
MAGZINES: BUSINESS TODAY INDIA TODAY
WEBSITES: www.cadburyindia.com/in/en/brands/chocolates/pages/cadburycelebrations.aspx www.nestle.in/brands/chocolatesandconfectionery/nestledarkchocolates www.nestle.in/brands/chocolatesandconfectionery/nestlemilkchocolates www.cadburyindia.com/in/en/about/aboutchocolate/pages/historyofchocolates.aspx
QUESTIONNAIRE ON COMPARATIVE ANALYSIS OF NESTLE V/S CADBURY Date______________ Name________________________
1.
Do you eat chocolates? 43
Yes ( )
No ( )
2. If yes, how often do you eat chocolates? Once a day ( ) 2/3times a day ( ) Occasionally ( ) 1/2 times a week ( ) 1/2 times a month ( ) 3. How much do you enjoy chocolates? Strong liking ( ) Average ( ) Strong dislike ( ) Can’t say ( )
4. Which of the following flavors do you like the most in the chocolates? Type: Milk Dark/plain
Nuts
toffee
wafer
mint
5. What would attract you to try out new chocolates bar in the market? Sample taste ( ) Cheaper prices ( ) Promotional activities ( ) Advertising campaign ( ) 44
6. Are you aware about the nestle chocolates? Yes ( )
7.
No ( )
Please rank the following in accordance to your preference. (From 1 to 6) NESTLE
CADBURY
MUNCH
5 STARS
KITKAT
DAIRY MILK
ECLAIRS 8.
PERK
In comparison with nestle, is the size of Cadbury chocolates is justifiable to its prices? Yes ( )
No ( )
9. In comparison of price values please share your views. 10. In comparison to nestle chocolates; does Cadbury have good advertising effectiveness? Yes ( ) No ( ) 11. Do you think that brand ambassador of the companies have impact on customer preference? Yes ( )
No ( )
12. In sales promotion which one is better in your view? Nestle ( )
Cadbury ( )
13. Please give your overall rating to the following: Nestlé ( ) Cadbury ( )
45
