PROJECT REPORT

ON
A COMPARATIVE STUDY ON CONSUMER BUYING
BEHAVIOUR FOR NESTLE AND CADBURY
CHOCOLATES
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT
OF THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION
OF
HNB GARHWAL UNIVERSITY, SRINAGAR
SUBMITTED TO:

SUBMITTED BY:

Dr. Nilesh Arora

Anchal Gupta

Asst. Professor

BB12A07

INSTITUTE OF MANAGEMENT STUDIES-DEHRADUN

SESSION 2012-2015

ACKNOWLEDGMENT
It is obvious that the development of anything or working on something needs the
support of many people. At this point, I would like to move away from talking
about the project and acknowledge some of the people who have made a major
contribution to its development. During the entire process of preparing this project
I have received in addition to the compliments a lots of suggestions from
developers, professors, publishers, authors, peers, parents and friends.
I would like to take this opportunity to express my gratitude towards all those people who
have helped me in the successful completion of this Project, directly or indirectly.

Anchal Gupta
BB12A07

CERTIFICATE
I have the pleasure in certifying that Ms. Anchal Gupta is a bonafide student of 5th
Semester of the Bachelor of Business Administration, of Institute of Management
Studies, Dehradun under Institute Roll No. BB12A07
she has completed her project work entitled A COMPARATIVE STUDY ON

CONSUMER BUYING BEHAVIOUR FOR NESTLE AND CADBURY

CHOCOLATES. under my guidance.
I certify that this is her original effort & has not been copied from any other
source. This project has also not been submitted in any other Institute / University for the
purpose of award of any Diploma.
This project fulfills the requirement of the curriculum prescribed by this Institute
for the said course. I recommend this project work for evaluation & consideration for the
award of Diploma to the student.

Signature:
Name of the Guide:
Date:

CANDIDATES DECLARATION
I hereby declare that the presented project report entitled, A COMPARATIVE

STUDY ON CONSUMER BUYING BEHAVIOUR IN NESTLE AND

CADBURY for the fulfillment of the requirements for the curriculum of BBA 3rd
year, programme of Institute of Management Studies, Dehradun. I am proud to complete
my study under the guidance of my faculty guide Dr. Nilesh Arora
It is exclusively prepared and conceptualized by me and is not given to any other
institution or published in any other report.

Dated

Anchal Gupta
BBA(5th Sem)

EXECUTIVE
SUMMARY

EXECUTIVE SUMMARY

FMCG companies have now realized that India lives in its rural villages. So much so
that rural marketing has become the latest marketing mantra of most FMCG majors. The
lure of an untapped market has driven the marketers to chalk out bold new strategies for
targeting the rural consumer in a big way.

India is on the move and so are the markets in India. Apart from economic
changes, India is also facing social changes like changes in life style,
hobbies etc. New fashions, Adventures holidays, etc. are in today.
Further, food habits of Indians are changing rapidly. Chocolates which were
believed to be kids preference are now being consumed by kids, teenagers, and adults.
Chocolate market in India (Currently 28 000 tones) is growing at a fast rate annually.
To take advantage of the growing market, international confectionery companies
are getting ready to woo the proverbial Indian Sweet tooth. An influx of worlds leading
Chocolate players is expected.
Nestle also piled primarily on the urban consumers. After understanding the great
potentiality rural India possesses, Nestle is also experimenting in big way to bring the
much needed volumes and help itself to bank upon the volume driven growth, in this
severe competitive FMCG sector where the dispersion or market penetration plays a big
role. So Nestle is eying on the market penetration and it is being targeted by devising
different marketing strategies.
The rational behind Nestle going for the market penetration is to acquire new
consumer base by making the products available to the every interior of the country and
increase its sales, to sustain growth. The company is having a marketing strategy to drive
penetration through wholesale marketing. But is it a right marketing strategy? Or will it
prove to be an expensive mistake? If they want to increase their penetration then how and
where they should go for? These are the issues Nestle is facing today.

This project is a market research and it touches every aspect of the current
wholesale marketing and predicament associated with it. It also juxtaposition that how
penetration, can be possible through wholesale marketing, what is the cost of doing it and
maintaining it. This project gives an insight into the every feasible aspect that is
associated in Driving penetration through wholesale marketing, for Nestle.
In the above context, the prime objective of this report is to prepare a marketing
plan for any brand that is planning to enter the India Chocolate Market. Therefore, this
report is generic (broad-based) to the extent that it does not focus on any single brand.
However, this may prove to be a relevant marketing guide for any brand launch in India.
The FMCG sector has been the cornerstone of the Indian economy. Though, the
sector has been in existence for quite a long time, it began to take shape only during the
last fifty-odd years. To date, the Indian FMCG industry continues to suffer from a
definitional dilemma. In fact, the industry is yet to crystallize in terms of definition and
market size, among others. The sector touches every aspect of human life, from looks to
hygiene to palate. Perhaps, defining an industry whose scope is so vast is not easy.
After witnessing booming sales and flooding markets with innumerable products,
FMCG companies have had to abruptly apply the brakes and look for various ways to
save costs. The MORE THAN RS. 43,000 crore (listed companies) FMCG industry in
India, which has been on a roll for many years, faces tough times ahead, although many
segments still shows good growth.

TABLE OF CONTENTS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

Acknowledgement
Certificate
Candidates Declaration
Executive Summary
Objectives of the Study
Introduction
Scope of the Study
History of Chocolates
Chocolate Process
Nestles profile
Cadburys profile
Research Methodology
Data Analysis
Findigs
Limitations
Suggestions & Recommendations
Conclusion
Bibliography
Questionnaire

OBJECTIVES OF
THE STUDY

OBJECTIVES OF THE STUDY

This project is based on the comparative study consumer behavior towards Nestle and
Cadbury chocolates. Objectives of the study are:
The other objective is to know about the customer satisfaction level associated with the
Nestle and Cadbury Chocolates and the customer preference level.
To study the factors affecting the consumption pattern.

10

INTRODUCTION

11

INTRODUCTION
In this research I have survey the product performance and buying behavior of two
famous brands of chocolates Nestle and Cadbury, which are consumed by people of all
ages. During this research I have interacted with people of Dehradun. After this
research I came to know how people perceives these products on the variables like price,
quality, advertisement, satisfaction, taste, packaging, brand loyalty etc. I also came to
know which particular brand of chocolate is most preferred by people of different age
groups. In this research I have surveyed that how frequently and how much chocolate
they consume, whether they buy small, big or family pack. Trend of ongoing changes in
their likings has been shown in the report. In this report I have tried to explain the entire
research and facts product wise.

12

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
consumers needs, but the marketers 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.

13

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

14

Chocolates
Chocolates! Chocolates!
Every body has a liking for them, be they in the form of bar
Or a tiny little gem,
Or shaped like a rectangle,
Or a sphere, a brick or an clair.
For chocolate lovers it is fun,
To have them during rain, breeze or sun.
They are white and brown in color,
And taste sweet and bitter.
Some have them in a glass of cold coffee, or in the form of a toffee.
Some eat them when they are sad.
Some relish them when they are happy or have sweet dreams,
But I feel, to have chocolates.
We dont need a reason,
Cause we can have it.
Anytime, any season!

15

History
Of
Chocolates

16

History of Chocolates
The origin of chocolate can be traced back to the ancient Maya and Aztec civilizations in
Central America, who first enjoyed chocolati a much-prized spicy drink made from
roasted cocoa beans. Throughout its history, whether as cocoa or drinking chocolate
beverage or confectionary treat, chocolate has been a much sought after food.

The Aztec empire

Chocolate(in the form of a luxury drink) was consumed in large quantities by the
Aztecs: the drink was described as finely ground, soft, foamy, reddish, bitter with chili
water, aromatic flowers, vanilla and wild bee honey. The dry climate meant the Aztecs
were unable to grow cocoa trees, and had to obtain supplies of cocoa beans from
tribute or trade.

Don Cortes
The Spanish invaded Mexico in the 16 th 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.

Drinking chocolate
The secret of chocolate was taken to France in 1615, when Anne, daughter of Phillip 2 of
Spain married king Louis 13 of France The French court enthusiastically adopted this
new exotic drink, which was considered to have medicinal benefits as well as being a
nourishing food.

First chocolate for eating

Up until this point all chocolate recipes were based on plain chocolate. It was an English
doctor, Sir Hanss Sloane, who- after traveling in south America- focused on cocoa and

17

food values, bringing a milk chocolate recipe back to England. The original Cadbury milk
chocolate was prepared to his recipe.

History
The earliest record of chocolate was over fifteen hundred years ago in the central
America rain forests, where the tropical mix of high rain fall combined with high year
round temperatures and humidity provide the ideal climate for cultivation of the plant
from which chocolate is derived, the cacao tree. Chocolate is made from the cocoa bean,
found in pods growing from the trunk and lower branches of the cacao tree, Latin name
the obroma cacao meaning food of the gods
Cacao was corrupted into the more familiar cocoa by the early European explorers.
The Maya brewed a spicy, bittersweet drink by roasting and pounding the seeds of the
cacao tree with maize and capsicum peppers and letting the mixture ferment. This drink
was reserved for use in ceremonies as well as for drinking by the wealthy and religious
elite; they also ate cacao porridge.

Chocolate in 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 Aztecs drank.
The first chocolate factories opened in Spain, where the dried fermented beans brought
back from the new world by the Spanish treasure fleets were roasted and ground, and by
the early 17th century chocolate powder from which the European version of the drink
was made- was being exported to other parts of Europe.
If only they had known, chocolate was so expensive at that time, that it was worth its
weight in silver ( if not gold), chocolate was treasure indeed !Within a few years, the
cocoa beverage made from the powder produced in Spain had become popular
throughout Europe, in the Spanish Netherlands, Italy, France, Germany and in about
1520 it arrived in England. The first chocolate house in England opened in London in
1657 followed rapidly by many others.
18

Back to the Americas

Events went full circle when English colonists carried chocolate (and coffee) with them
to Englands 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 Quakers who evolved from the puritans, first began their historic association
with chocolate. Because of their pacifist religion, they were prohibited from many normal
business activities, so as an industrious people with a strong belief in the work ethic (like
the puritans), they involved themselves in food related businesses and did very well.
Baking was a common occupation for them because bread was regarded as the biblical
staff of life, and bakers in England were the first to add chocolate to cakes so it would
be a natural progression for them to start making pure chocolate.

What is certain is that the fry, row tree and Cadbury families in England among others,
began chocolate making and in fact Joseph fry of fry &sons (founded 1728 in Bristol,
England) is credited with producing and selling the worlds first chocolate bar. Frys have
now all but disappeared (taken over by Cadbury) and row tree have merged Swiss
company nestle, to form the largest chocolate manufacturer in the world. Cadbury have
stayed with chocolate production and are now, if not quite the largest, probably one of the
best-known chocolate makers in the world.

Chocolate as we know it
19

The first mention of chocolate being eaten in solid form is when bakers in England began
adding cocoa powder to cakes in the mid 1600s. Then in 1828 a Dutch chemist, Johannes
van houten, invented a method of extracting the bitter tasting fat or cocoa butter from
the roasted ground beans, his aim was to make the drink smoother and more palatable,
however he unknowingly paved the way for solid chocolate as we know it. Chocolate as
we know it today first appeared in 1847 when fry & sons of Bristol, England mixed
sugar with cocoa powder and cocoa butter (made by the van houten process) to produce
the first solid chocolate bar then in1875 a Swiss manufacturer, Daniel peters, found a way
to combine (some would say improve, some would say ruin) cocoa powder and cocoa
butter with sugar and dried milk powder to produce the first milk chocolate.

Chocolate process Procedure

20

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

The Varieties
There are two quite different basic classifications of cocoa, under which practically all
varieties can be categorized : Criollo and
Forastero cocoas. The pure variety of the Criollo tree is found mainly in its native
Equador and Venezuela. The seeds are of finer quality than those of the Forastero
variety.
They have a particularly fine, mild aroma and are, therefore, used only in the
production of high-quality chocolate and for blending. However, Criollo cocoa
accounts for only 10% of the world crop. The remaining 90% is harvested from trees of
the Forastero family, with its many hybrids and varieties. The main growing area is
West Africa. The cocoa tree can flourish only in the hottest regions of the world.

The Harvest
Immediately after harvesting, the fruit is treated to prevent it from rotting. At
fermentation sites either in the plantation or at, collecting
points, the fruit is opened.

Fermentation
The fermentation process is decisive in the production of high quality raw cocoa. The
technique varies depending on the growing region.

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

Cleaning
Before the real processing begins, the raw cocoa is thoroughly cleaned by passing
through sieves, and by brushing. Finally, the last vestiges of wood, jute fibres, sand and
even the finest dust are extracted by powerful vacuum equipment.

Roasting
The subsequent roasting process is primarily designed to develop the aroma. The entire
roasting process, during which the air in the nearly 10 feet high furnaces reaches a
temperature of 130 C, is carried out automatically.

Crushing and shelling

The roasted beans are now broken into medium sized pieces in the crushing machine.

Blending
Before grinding, the crushed beans are weighed and blended according to special recipes.
The secret of every chocolate factory lies in the special mixing ratios which it has
developed for different types of cocoa.

Grinding
The crushed cocoa beans, which are still fairly coarse are now pre-ground by special
milling equipment and then fed on to rollers where they are ground into a fine paste. The
heat generated by the resulting pressure and friction causes the cocoa butter
(approximately 50% of the bean) contained in the beans to melt, producing a thick, liquid
mixture.
This is dark brown in colour with a characteristic, strong odour. During cooling it
gradually sets: this is the cocoa paste.At this point the production process divides into
two paths, but which soon join again. A part of the cocoa paste is taken to large presses,
which extract the cocoa butter. The other part passes through various blending and

22

refining processes, during which some of the cocoa butter is added to it. The two paths
have rejoined.

Cocoa Butter
The cocoa butter has important functions. It not only forms part of
every recipe, but it also later gives the chocolate its fine structure,
beautiful lustre and delicate, attractive glaze.

Cocoa Powder
After the cocoa butter has left the press, cocoa cakes are left which still contain a 10 to
20% proportion of fat depending on the intensity of compression.
These cakes are crushed again, ground to powder and finely sifted in several stages and
we obtain a dark, strongly aromatic powder which is excellent for the preparation of
delicious drinks - cocoa. Cocoa paste, cocoa butter, sugar and milk are the four basic
ingredients for making chocolate. By blending them in accordance with specific recipes
the three types of chocolate are obtained which form the basis of ever product assortment,
namely

Kneading
In the case of milk chocolate for example, the cocoa paste, cocoa
butter, powdered or condensed milk, sugar and flavoring - 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 pulverize the tiny particles of
cocoa and sugar down to a size of approx. 30 microns. (One micron is a thousandth part
of a millimeter.)

23

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 in which 100 to 1000 kilograms of chocolate paste at a time can be heated up to
80 C and, while being constantly stirred, is given a velvet smoothness by the addition of
certain amounts of cocoa butter. A kind of aeration of the liquid chocolate paste then
takes place in the conches: its bitter taste gradually disappears and the flavor is fully
developed. The chocolate no longer seems sandy, but dissolves meltingly on the tongue.
It has attained the outstanding purity which gives it its reputation.

Consumption of Chocolates in India

Chocolate consumption in India is extremely low. Per capita consumption is around 160
gms in the urban areas, compared to 8-10kg in the developed countries. In rural areas, it
is even lower. Chocolates in India are consumed as indulgence and not as a snack food. A
strong volume growth was witnessed in the early 90s when Cadbury repositioned
chocolates from children to adult consumption. The biggest opportunity is likely to stem
from increasing the consumer base. Leading players like Cadbury and Nestle have been
attempting to do this by value for money offerings, which are affordable to the masses.

24

25

26

Nestle India
Nestl India is a subsidiary of Nestl S.A. of Switzerland. With seven factories and a
large number of co-packers, Nestl India is a vibrant Company that provides consumers
in India with products of global standards and is committed to long-term sustainable
growth and shareholder satisfaction.

Nestl India has presence across India with 7 manufacturing facilities and 4 branch
offices spread across the region.
Nestl Indias first production facility, set up in 1961 at Moga (Punjab), was followed
soon after by its second plant, set up at Choladi (Tamil Nadu), in 1967. Consequently,
Nestl India set up factories in Nanjangud (Karnataka), in 1989, and Samalkha
(Haryana), in 1993. This was succeeded by the commissioning of two more factories - at
Ponda and Bicholim, Goa, in 1995 and 1997 respectively. The seventh factory was set up
at Pantnagar, Uttarakhand, in 2006.

27

The 4 branch offices in the country help facilitate the sales and marketing of its products.
They are in Delhi, Mumbai, Chennai and Kolkata. The Nestl India head office is located
in Gurgaon, Haryana.

Nestls story
Nestl was founded in 1867 on the shores of Lake Geneva in Vevey, Switzerland and its
first product was Farine Lacte Nestl, an infant cereal specially formulated by Henri
Nestl to provide and improve infant nutrition. From its first historic merger with the
Anglo-Swiss Condensed Milk Company in 1905, Nestl has grown to become the
worlds largest and most diversified food Company, and is about twice the size of its
nearest competitor in the food and beverage sector. Nestls trademark of birds in a nest,
derived from Henri Nestls personal coat of arms, evokes the values upon which he
founded his Company.
Namely, the values of security, maternity and affection, nature and nourishment, family
and tradition. Today, it is not only the central element of Nestls corporate identity but
serves to define the Companys products, responsibilities, business practices, ethics and
goals. In 2004, Nestl had around 247,000 employees worldwide, operated 500 factories
in approx. 100 countries and offered over 8,000 products to millions of consumers
universally.
The Companys transparent business practices, pioneering environment policy and
respect for the fundamental values of different cultures have earned it an enviable place
in the countries it operates in. Nestls activities contribute to and nurture the sustainable
economic development of people, communities and nations. Above all, Nestl is
dedicated to bringing the joy of Good Food, Good Life to people throughout their lives,
throughout the world.

Nestle Brands

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Milk Products & Nutrition.

Beverages.
Prepared Dishes & Cooking Aids.
Chocolates & Confectionery

Milk Products & Nutrition.

Nestle Everyday Dairy Whitener.
Nestle Everyday Ghee.
Nestle Milk.
Nestle Slim Milk.
Nestle NESVITA Pro-Heart Milk.
Nestle Fresh n Natural Dahi.
Nestle Fresh n Natural Slim Dahi.
Nestle Jeera Raita.
Nestle NESVITA Dahi.
Nestle Milkmaid fruit yoghurt.
Nestle Milkmaid.
Nestle Dahi.
Nestle Neslac.

Beverages.
Nescafe Classic.
Nescafe Sunrise Premium.
Nescafe Premium.
Nescafe Cappuccino.
Nescafe Iced Tea with Green Tea.
Nescafe Iced tea.
Nescafe 3 in 1.

Prepared Dishes & Cooking Aids

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Maggi 2- Minute Noodles.

Maggi Vegetable Atta Noodles.
Maggi Cuppa Mania.
Maggi Healthy soups.
Maggi sauces.
Maggi Pichkoo.
Maggi Pizza Mazaa.
Maggi magic cubes.
Maggi Sanjeevni cup soup.
Maggi Coconut milk powder.

Chocolates & Confectionery

Nestle Kitkat.
Nestle Kitkat chunky.
Nestle Munch.
Nestle Milky bar.
Nestle Milky bar Choo.
Nestle Bar One.
Nestle Milk Chocolate.
POLO.
Nestle Eclairs.
Nestle Milky bar Eclairs.

Nestle Kit Kat

It is a crisp wafer fingers covered with chocolayer. Nestle Kit Kat has a
unique finger format with breaking ritual attached to it.

30

 Nestle Kit Kat is one of the most successful brands in the world & every year over
12 billion Kit Kat are consumed throughout the world.

Nestle Munch
NESTL MUNCH is wafer layer covered with delicious choco layer. It is so
crispy, light and irresistible that you just can't stop Munching.' NESTL
MUNCH is the largest selling SKU in the category!

Nestle Milky bar

NESTL MILKYBAR is a delicious milky treat, which kids love. Re-launched in

January 2006 with a Calcium Rich recipe, NESTL MILKYBAR is a favorite
with parents to treat their kids with.

Nestle Bar One

Is a luscious nougat and caramel with delicious choco layer. NESTL BAR-ONE
constantly reminds you that it is Time for Action'.

NESTL Milk Chocolate is a milk chocolate with a delicious taste. Kids just love
it!

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32

Cadbury
How Cadbury Chocolate is made

John Cadbury

Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder
John paste to the dark chocolate recipe of cocoa mass, cocoa butter and sugar. By today's
standards this chocolate was not particularly good: it was coarse and dry and not sweet or
milky enough for public tastes.
There was a great deal of competition from continental manufacturers, not only the
French ,but also the Swiss, renowned for their milk chocolate. Led by George Cadbury
Junior, the Bourneville experts set out to meet the challenge. A considerable amount of
time and money was spent on research and on new plant designed to produce the
chocolate in larger quantities.
A recipe was formulated incorporating fresh milk, and production processes were
developed to produce a milk chocolate 'not merely as good as, but better than' the
imported milk chocolate'.
Four years of hard work were invested in the project and in 1905 what was to be
Cadbury's top selling brand was launched.
Three names were considered: Jersey, Highland Milk and Dairy Maid. Dairy Maid
became Dairy Milk, and Cadbury's Dairy Milk
, with its unique flavour and smooth creamy texture, was ready to challenge the Swiss
domination of the milk chocolate market.
By 1913 Dairy Milk had become the company's best selling line and in the mid twenties
Cadbury's Dairy Milk gained its status as the brand leader, a position it has held ever
since.

33

Companys Overview of Cadbury India

Cadbury began its operations in 1948 by importing chocolates and then re-packing them
before distribution in the Indian market. After 59 years of existence, it today has five
company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur
(Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi,
Mumbai,

Kolkota

and

Chennai).The

corporate

office

is

in

Mumbai.

Currently Cadbury India operates in three sectors viz. Chocolate Confectionery, Milk
Food Drinks and in the Candy category.In the Chocolate Confectionery business,
Cadbury has maintained its undisputed leadership over the years. Some of the key brands
are Cadbury Dairy Milk, 5 Star, Perk, clairs and Celebrations. Cadbury enjoys a value
market share of over 70% the highest Cadbury brand share in the world! Their flagship
brand Cadbury Dairy Milk is considered the "gold standard" for chocolates in India. The
pure taste of CDM defines the chocolate taste for the Indian consumer.
In the Milk Food drinks segment their main product is Bournvita - the leading Malted
Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is the
undisputed leader.The Cadbury India Brand Strategy has received consistent support
through simple but imaginative extensions to product categories and distribution. A good
example of this is the development of Bytes.

Crispy wafers filled with coca cream in the form of a bagged snack, Bytes is positioned
as "The new concept of sweet snacking". It delivers the taste of chocolate in the form of a
34

light snack, and thus heralds the entry of Cadbury India into the growing bagged Snack
Market, which has been dominated until now by Salted Bagged Snack Brands. Bytes was
first launched in South India in 2003.
Today, Cadbury is poised in its leap towards quantum growth and new categories of
business, namely gums, mints, snacking and gifting. It is a part of the Cadbury
Schweppes Group, world's No.1 Confectionery Company.

Cadbury Worldwide
Cadbury is the world's largest confectionery company and have a strong regional
presence in beverages in the Americas and Australia. With origins stretching back over
200 years, today their products - which include brands such as Cadbury, Schweppes,
Halls, Trident, Dr Pepper, Snapple, Trebor, Dentyne, Bubblicious and Bassett - are
enjoyed in almost every country around the world. We employ around 60,00people.
Their heritage starts back in 1783 when Jacob Schweppe perfected his process for
manufacturing carbonated mineral water in Geneva, Switzerland. And in 1824 John
Cadbury opened in Birmingham selling cocoa and chocolate. These two great household
names merged in 1969 to form Cadbury Schweppes plc.
Since then they have expanded their business throughout the world by a programme of
organic and acquisition led growth.
Concentrating on their core brands in beverages and confectionery since the 1980s, they
have strengthened their portfolio through almost fifty acquisitions, including brand icons
such as Mott's, Canada Dry, Halls, Trident, Dentyne, Bubblicious, Trebor, Bassett, Dr
Pepper, 7 Up and Snapple. -It employ 60,000 people in over 200 countries - Worlds No 1
Confectionery company- World's No 2 Gums company- World's No 3 beverage company

Cadbury Brands:

35

Chocolates
Snacks
Beverages
Candy

SNACKS:
Bytes

BEVERAGES
Bournvita

CANDY
Halls

CHOCOLATES
Dairy Milk.
5 Star.
Perk.
Celebrations.
Temptation.
Eclairs.

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Dairy Milk

The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K., but the
journey with chocolate lovers in India began in 1948.The variants Fruit & Nut, Crackle
and Roast Almond, combine the classic taste of Cadbury Dairy Milk with a variety of
ingredients and are very popular amongst teens & adults.
Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie,
chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a
delightful combination of milk chocolate and white chocolate. Giving consumers an
exciting reason to keep coming back into the fun filled world of Cadbury.
Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market.

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5 Star

The second largest after Cadbury Dairy Milk with a market share of 14%, Cadbury 5 Star
moves from strength to strength every year by increasing its user base.
Launched in 1969 as a bar of chocolate that was hard outside with soft caramel nougat
inside, Cadbury 5 Star has re-invented itself over the years to keep satisfying the
consumers taste for a high quality & different chocolate eating experience.
One of the key properties that Cadbury 5 Star was associated with was its classic Gold
colour. And through the passage of time, this was one property that both, the brand and
the consumer stuck to as a valuable association.
More recently, to give consumers another reason to come into the Cadbury 5 Star fold,
Cadbury 5 Star Crunchy was launched. The same delicious Cadbury 5 Star was now
available with a dash of rice crispies.

Perk

Cadbury launched Perk in 1996. With its light chocolate and wafer construct, Cadbury
Perk targeted the casual snacking space that was dominated primarily by chips & wafers.
With the rise of more value-for-money brands in the wafer chocolate segment, Cadbury
Perk unveiled two new offerings - Perk XL and XXL. In 2004, with an added dose of
'Real Cadbury Dairy Milk' and an 'improved wafer', Perk became even more irresistible.

Celebrations

38

Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai and
dry- fruits during festive seasons.
Cadbury Celebrations is available in several assortments: An assortment of chocolates
like 5 Star, Perk, Gems, Dairy Milk and Nutties and rich dry fruits enrobed in Cadbury
dairy milk chocolate in 5 variants, Almond magic, raisin magic, cashew magic, nut
butterscotch and caramels.
The super premium Celebrations Rich Dry Fruit Collection which is a festive offering is
an exotic range of chocolate covered dry fruits and nuts in various flavors and the
premium dark chocolate range which is exotic dark chocolate in luscious flavors.

39

Temptation

Cadbury Temptations is a range of delicious premium chocolate in five flavors

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

40

RESEARCH
METHODOLOGY

41

RESEARCH METHODOLOGY
This chapter describes the methodology of the study. This project is based on information
collected from primary sources. After the detailed study, an attempt has been made to
present comprehensive analysis of consumption of Cadbury and nestle chocolates
consumed by the people. The data had been used to cover various aspects like
consumption, consumers preference and customers satisfaction regarding Cadbury and
Nestle chocolates. In collecting requisite data and information regarding the topic
selected, I went to the residents of Dehradun 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 and offered multiple choices.

Data Collection
The data, which is collected for the purpose of study, is divided into 2 bases:

42

Primary Source: The primary data comprises information survey of

Comparative study of consumer behavior towards Nestle and Cadbury
chocolates. The data has been collected directly from respondent with the help
of structured questionnaires.
Secondary Source: The secondary data was collected from internet,
references from library.

Data Analysis
The data is analyzed on the basis of suitable tables by using mathematical techniques.
The technique that I have used is bar technique.

43

DATA ANALYSIS

44

DATA ANALYSIS
1. Do you eat chocolate?

Interpretation
Chocolate is a product which is like by the all age group of people. According to the
survey 83% of people says Yes they eat chocolate and 17% say no they are not eating
chocolate. May be the reason behind that is they are not eating chocolate on daily or
weakley basis or may be they are eating any other brand of chocolate.

2. Which brand of chocolate do you prefer?

45

Interpretation
There are many brands available in the market. But the market leaders in india are
basically two brands like Cadbury & Nestle. According to survey 64% of the market is
captured by the Cadbury and only 19% of the market is covered by the Nestle. To capture
the market the company should do more advertising and sales distribution. And also
should maintain quality of the product compare to the competitors.

3. Which sub-brand you have purchased?

46

Interpretation:

47

In this survey nestle is having five sub brands like Kitkat, Munch, Milkybar, Barone,
Milk Chocolate and their consumption are like Kitkat 33%,Munch 56%, Milky bar 3%,
Barone 5% and Milk Chocolate 3%. And if we talk about Cadbury the subbrands of
Cadbury is Dairymilk, 5 Star, Perk, Celebration and Temptation and their consumption
are like Dairy Milk 62%, 5 Star 17%, Perk 14%, Celebration 2% and Temptation 5%.
According to the survey the highest selling product is Cadbury.

48

4. Rank the sub-brands of chocolate according to

your preference?(1 for most preferred)

Interpretation
In this survey I found that the most selling product is munch the sub-brand of Nestle the
Munch has capture the 50% of the market as compared to the Cadbury product the
highest selling product of Cadbury is Dairy Milk which Captured the market stake of
47% which is as compared to Munch 20% less which is a good sigh for Nestle and the

49

less consumption of the Nestle product is Milk bar & Milk Chocolate the market share is
only 3% and is Cadbury less selling product are Celebration and Temptation the reason
behind this is they are too Costly to Consume. And it can only use occasionally.

5. How much importance do you give to the following

factor when you purchased a chocolate?

Degree
Very Imp.
Important
Normal
Least Impt

Taste/Flavour
88
9
2
1

Price
1
3
96
0

Packaging
12
6
4
78

Quantity
81
12
6
1

Interpretation:
Whenever we are consuming any food product our main focus is on the quality and
price in India there is more concentrating on the quality of the product rather than
other parameters of the productin this survey I found that the basic concentration of

50

the consumer is on taste 88% says that they purchase if they like the taste of the
product. 96% says if normal price would be there a taste is good than price does not
matter. 78% of the consumer says that if they are getting best quality product at
nominal price than the packaging is least important. 78% says that they are mainly
seeing the quality of the product if the product is qualitative than thay are ready to
pay any price for that product.

51

6. Which form of chocolate do you like?

Interpretation:
Every person have three own taste and preference towards the eatable product in
chocolate there are four varities available in the market among this 47% of the
consumer like hard Chocolate, 29% of the Consumer like crunchy chocolate, 18% of
the Consumer like nutties Chocolate & only 6% of the Consumer like Chew
chocolate.

52

7. What pack do you purchase?

Interpretation:
The chocolate are available in the market in different packaging like small, big & family
pack, from the survey we can say that the consumption of the chocolates are more eaten
by the teenage group so they more prefer the small packaging because of there
availability in market is good and most important thing is its very much affordable.
According to the survey 73% are using small pack, 17% are using big pack of the
chocolate, 10% are consuming family pack because of there high price. So we can easily
see that the consumption of small pack is having boom in the market compare to other
packaging.

53

8. Which promotional offers attract you most?

Interpretation :
To sell out the product there are many promotional activity conducted by the company to
face the competition the offer give by the company are like free gifts, price offers, or any
other scheme. In this 12% are giving the free gifts offers(scratch the card Scheme), 84%
are directly giving the price offers, and 4% giving the any other kind of scheme.

54

9. Which of these factors affects your purchase?

Interpretation :
There are many factors affecting at the time of purchase. So company is doing
promotional activities to acquire the desire target of the product. Basically there are six
main type of the promotional activities like 69% of the advertisement, 1% of the
suggestion, 2% of the attractive display, 0% of the doctors advice, 21% of the companies
are using Brand Ambassadors in there advertisemaent, 7% of the ingredients. So all this
factor are affecting the purchase.

10. Which media of advertisement influence your purchase?

55

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

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

56

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

57

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.

58

Findings

59

Findings
Consumer Research: Consumer research deals with consumer and their problems and
solution to the problems. In this I came to know about the consumers need and
expectation levels regarding products and ascertainable levels of consumer
satisfaction.
Product Research: Under product research I came to know about the modification
which consumers wants as to the quality, packing, shape, color, and quantity etc of
their favorite chocolate.
Pricing Research: This includes ability to consume, to pay for the product, how much
a person can spend on his/her favorite chocolate. In this I have tried to find out
consumers 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

LIMITATIONS

61

LIMITATIONS OF THE STUDY

In attempt to make this project authentic and reliable, every possible aspect of the topic
was kept in mind. Nevertheless, despite of fact constraints were at play during the
formulation of this project. The main limitations are as follows:
Due to limitation of time only few people were selected for the study. So the sample of
consumers was not enough to generalize the findings of the study.
The main source of data for the study was primary data with the help of self-administered
questionnaires. Hence, the chances of unbiased information are less.
People were hesitant to disclose the true facts.
The chance of biased response cant be eliminated though all necessary steps were taken
to avoid the same.

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Suggestions &
Recommendations

63

Suggestions & Recommendations

Company should concentrate more on television for advertisement, as mostly people get
attracted through television only.
For promotional offers, company should go for free gifts rather than going for other
ways.
Nestle company should concentrate on its packing as people are least satisfied with it
while Cadbury should concentrate on the shape of a chocolate.
People are unsatisfied with the price and quantity of chocolate so companies should
concentrate in this regard also.

64

Conclusion

65

Conclusion
A survey of the people has been conducted to know the liking pattern of the two products
Cadbury and Nestle. It is observed that overall people like to eat Cadbury brand rather
than Nestle. It is concluded that mostly people preferred Dairy Milk of Cadbury due to
its flavor/taste, quality and image and due to its hard form. Some people often like to
have a chocolate with good flavor, quality and crunchiness so they are going towards Kit
Kat and Munch of Nestle due to its taste and crunchiness.
It is thus concluded from the facts collected that mostly people refer to buy big pack of
their favorite chocolate, and sometimes some of them go for small and family pack.

66

Bibliography
www.cadburyindia.com
www.nestle.com
www.aphrodite-chocolates.co.uk/history_chocolate.htm
www.google.com
www.cadbury.co.nz/carnival/index.htm
www.packaging-technology.com.../cadbury4.html
www.chocolatereview.co.uk
www.wikipedia.org

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QUESTIONNAIRE
Personal Profile :Name
Adddress

:
:

Age

Gender

Male

Female

1. Do you eat chocolate?

Yes

No

2. Which brand of chocolate do you prefer?

Cadbury

Nestle

3. Which sub-brand you have purchased?

Cadbury

Nestle

Dairy Milk

KitKat

5 Star

Munch

Perk

Milky Bar

Celebration

Bar-One

Temptation

Milk Chocolate

4. Rank the sub-brands of chocolate according to your preference?

Cadbury

Nestle

Dairy Milk

KitKat

5 Star

Munch

Perk

Milky Bar

Celebration

Bar-One

Temptation

Milk Chocolate

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5. How much importance do you give to the following factors when you purchase a
chocolate?
Factors
Flavor/Taste
Price
Quality
Packaging

Very Imp.

Important

Normal

6. Which form of chocolate do you like?

Hard

Nutties

Crunchy

Chew

7. What pack do you purchase?

Small
Big
Family Pack
8. Which promotional offers attract you most?
Free gifts

Price Offer

9. Which of these factors affects your purchase?

Advertisement
Suggestion from friend & relatives
Attractive Display
Doctor Advice
Brand Ambassadors
Ingredients

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Least Imp.

10. Which media of advertisement influence your purchase?

Television

Newspaper

Hoarding

Display

Brochures
11. If your preferred brand is not available for repeat
purchases then what will you do?
Postpone your Purchase
Switch over to other Brand
Go to the other shop
12. Do you feel that the product characteristics match with those mentioned in the
advertisement?
Yes
No

13. Are you influenced by advertisement to buy or change a

brand?
Yes
No

70

particular