100
STUDY OF CONSUMER PREFERENCE TOWARDS CADBURY AND NESTLE CHOCOLATES PROJECT REPORT SUBMITTED, IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION SUBMITTED BY: MAHESH GOPINATHAN NAIR ENROLMENT No.

8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

Embed Size (px)

Citation preview

Page 1: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

STUDY OF CONSUMER PREFERENCE TOWARDS CADBURY

AND NESTLE CHOCOLATES

PROJECT REPORT SUBMITTED,

IN PARTIAL FULFILMENT OF THE

REQUIREMENT FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY:

MAHESH GOPINATHAN NAIR

ENROLMENT No.

Page 2: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

DECLARATION

Hereby declare that the project report entitled “STUDY OF CONSUMER PREFERENCE

TOWARDS NESTLE AND CADBURY CHOCOLATES” submitted for the degree of Master of

Business Administration, is my original work and the project report has not formed the

basis for the award of any diploma, degree, associate ship, fellowship or similar other

titles. It has not been submitted to any other university or institution for the award of

any degree or diploma.

Place:

Date: Mahesh Gopinathan Nair

Page 3: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

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’s not easy to achieve

anything. There is always a sense of gratitude, which we express to others for the help

and the needy services they render during the 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.

First of all I wish to express my profound gratitude and sincere thanks to my esteemed

learned Director Dr. B.S. Bhatia, Director RIMT, Mandi Gobindgarh, who allowed me to

conduct the survey.

I would like to thank my professor Ms. Manjari who was always there to help and guide

me when I needed help. His perceptive criticism kept me working to make this project

more full proof. I am thankful to him for his encouraging and valuable support. Working

under him was an extremely knowledgeable and enriching experience for me. I am very

thankful to him for all the value addition and enhancement done to me.

No words can adequately express my overriding debt of gratitude to my parents whose

support helps me in all the way. Above all I shall thank my friends who constantly

encouraged and blessed me so as to enable me to do this work successfully.

Jasdeep Singh

MBA

Page 4: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

TABLE OF CONTENTS

CHAPTER

NUMBER

CHAPTER NAME CONTENTS PAGE

NUMBER

I INTRODUCTION TO THE STUDY INTRODUCTION 2

CONSUMER PREFERENCE 3

SCOPE OF THE STUDY 4

OBJECTIVES OF THE STUDY 5

LIMITATIONS OF THE STUDY 6

II INTRODUCTION OF CHOCOLATE

AND COMPANY’S PROFILE

HISTORY OF CHOCOLATE 10

CHOCOLATE PRODUCTION 15

CONSUMTION OF

CHOCOLATE IN INDIA

19

NESTLE’S PROFILE 20

CADBURY’S PROFILE 25

III RESEARCH & DESIGN

METHODOLOGY

BASIS OF RESEARCH AND

DESIGN

33

IV FINDINGS & ANALYSIS ANALYSIS OF DATA 36

FINDINGS 61

CONCLUSION 62

SUGGESTIONS AND

RECOMENDETATIONS

63

V BIBLIOGRAPHY 65

VI ANNEXURE 67

LIST OF TABLES

Page 5: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

TABLE

NUMBER

TITLE PAGE

NUMBER

1 LIKING FOR THE CHOCOLATES 36

2 DIFFERENT AGE GROUPS 37

3 PREFERENCE ACCORDING TO AGE GROUPS 38

4 BRAND PREFERENCE 39

5 PURCHASE OF CADBURY CHOCOLATES 40

6 PURCHASE OF NESTLE CHOCOLATES 41

7 OVERALL PURCHASE OF CHOCOLATES 42

8 PREFERENCE OF SUBRANDS OF CADBURY CHOCOLATES 43

9 PREFERENCE OF SUB-BRANDS OF NESTLE CHOCOLATES 44

10 INFLUENCING FACTORS DURING PURCHASE 45

11 INFLUENCING FACTORS DURING PURCHASE OF CADBURY

CHOCOLATES

46

12 INFLUENCING FACTORS DURING PURCHASE OF NESTLE

CHOCOLATES

47

13 FACTORS GIVING MOST SATISFACTION TO CONSUMERS 48

14 FACTORS GIVING MOST SATISFACTION TO CONSUMERS IN

CADBURY CHOCOLATE

49

15 FACTORS GIVING MOST SATISFACTION TO CONSUMERS IN

NESTLE CHOCOLATE

50

16 FORM PREFERENCE 51

17 PACK OF CHOCOLATES PREFERED 52

18 PROMOTIONAL OFFERS 53

19 FACTORS AFFECTING PURCHASE 54

TABLE

NUMBER

TITLE PAGE

NUMBER

20 MEDIA OF ADVERTISEMENT 55

Page 6: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

21 FREQUENCY OF CONSUMPTION 56

22 REASONABLE PRICE 57

23 CONSUMER’S BRAND LOYALTY 58

24 REACTION OF CONSUMERS IF NEW BRAND IS INTRODUCED 59

LIST OF GRAPHS

Page 7: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

TABLE

NUMBER

TITLE PAGE

NUMBER

1 LIKING FOR THE CHOCOLATES 36

2 DIFFERENT AGE GROUPS 37

3 PREFERENCE ACCORDING TO AGE GROUPS 38

4 BRAND PREFERENCE 39

5 PURCHASE OF CADBURY CHOCOLATES 40

6 PURCHASE OF NESTLE CHOCOLATES 41

7 OVERALL PURCHASE OF CHOCOLATES 42

8 FORM PREFERENCE 51

9 PACK OF CHOCOLATES PREFERED 52

10 PROMOTIONAL OFFERS 53

11 FACTORS AFFECTING PURCHASE 54

12 MEDIA OF ADVERTISEMENT 55

13 FREQUENCY OF CONSUMPTION 56

14 REASONABLE PRICE 57

15 CONSUMER’S BRAND LOYALTY 58

16 REACTION OF CONSUMERS IF NEW BRAND IS INTRODUCED 59

INTRODUCTION

Page 8: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

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 “Ambala”. 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.

Page 9: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

CONSUMER PREFERENCE

All marketing starts with the consumer. So consumer is a very important person to a

marketer. Consumer decides what to purchase, for whom to purchase, why to purchase,

from where to purchase, and how much to purchase. In order to become a successful

marketer, he must know the liking or disliking of the customers. He must also know the

time and the quantity of goods and services, a consumer may purchase, so that he may

store the goods or provide the services according to the likings of the consumers. Gone

are the days when the concept of market was let the buyer’s beware or when the

market was mainly the seller’s market. 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 this.

Preference (or "taste") is a concept, used in the social sciences, particularly economics.

It assumes a real or imagined "choice" between alternatives and the possibility of rank

ordering of these alternatives, based on happiness, satisfaction, gratification,

enjoyment, utility they provide. More generally, it can be seen as a source of

motivation. In cognitive sciences, individual preferences enable choice of

objectives/goals.

The study of the consumer preference not only focuses on how and why consumers

make buying decision, but also focuses on how and why consumers make choice of the

goods they buy and their evaluation of these goods after use. So for success of any

Page 10: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

company or product promotion it is very necessary to depart its concentration towards

consumer preference.

SCOPE OF THE STUDY

As learning is a human activity and is as natural, as breathing. Despite of the fact that

learning is all pervasive in our lives, psychologists do not agree on how learning takes

place. How individuals learn is a matter of interest to marketers. They want to teach

consumers in their roles as their roles as consumers. They want consumers to learn

about their products, product attributes, potential consumers benefit, how to use,

maintain or even dispose of the product and new ways of behaving that will satisfy not

only the consumer’s needs, but the marketer’s objectives.

The scope of my study restricts itself to the analysis of consumer preferences,

perception and consumption of Cadbury and Nestle Chocolates. There are many other

brands of chocolates available but my study is limited to two major players of

chocolates leaving behind the others. The scope of my study is also restricts itself to

Ambala region only.

Page 11: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

OBJECTIVES OF THE STUDY

This project is based on the comparative study consumer behavior towards Nestle

and Cadbury chocolates. Objectives of the study are:

The other objective is to know about the customer satisfaction level

associated with the product and the customer preference level.

To increase customer satisfaction and recapture the market share by

fulfilling the customer needs.

To study the factors affecting the consumption pattern.

Page 12: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

LIMITATIONS OF THE STUDY

In attempt to make this project authentic and reliable, every possible aspect of the topic

was kept in mind. Nevertheless, despite of fact constraints were at play during the

formulation of this project. The main limitations are as follows:

Due to limitation of time only few people were selected for the study. So the

sample of consumers was not enough to generalize the findings of the study.

The main source of data for the study was primary data with the help of self-

administered questionnaires. Hence, the chances of unbiased information are

less.

People were hesitant to disclose the true facts.

The chance of biased response can’t be eliminated though all necessary steps

were taken to avoid the same.

Page 13: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates
Page 14: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

Chocolate

The very word makes your mouth water.

Chocolate is more than just a food: it’s a state of mind.

Page 15: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

Chocolates

Chocolates! Chocolates!

Every body has a liking for them, be they in the form of bar

Or a tiny little gem,

Or shaped like a rectangle,

Or a sphere, a brick or an éclair.

For chocolate lovers it is fun,

To have them during rain, breeze or sun.

They are white and brown in color,

And taste sweet and bitter

Some have them in a glass of cold coffee, or in the form of a toffee.

Some eat them when they are sad

Some relish them when they are happy or have sweet dreams,

But I feel, to have chocolates

We don’t need a reason,

‘Cause we can have it

Anytime, any season!

Page 16: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

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.

Page 17: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

Chocolate across Europe

An Italian traveler, Francesco carletti, was the first to break the Spanish monopoly. He

had visited Central America and seen how the Indians prepared the cocoa beans and

how they made the drink, and by 1606 chocolate was well established in Italy.

Drinking chocolate

The secret of chocolate was taken to France in 1615, when Anne, daughter of Phillip 2 of

Spain married king Louis 13 of France

The French court enthusiastically adopted this new exotic drink, which was considered

to have medicinal benefits as well as being a nourishing food. 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 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. This drink

Page 18: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

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

almost impossible to pronounce and so corrupted it to the easier “ chocolat” the English

further changed this to chocolate.

The Aztec’s regarded chocolate as an aphrodisiac and their emperor, Montezuma

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 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 was

treasure indeed !

Page 19: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

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

the wealthy and business community met to smoke a clay pipe of tobacco, conduct

business and socialize over a cup of chocolate.

Back to the America’s

Event’s went full circle when English colonists carried chocolate (and coffee) with 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

Page 20: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

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 selling the world’s first chocolate bar. Fry’s have

now all but disappeared (taken over by Cadbury) and row tree have merged Swiss

company nestle, to form the largest chocolate manufacturer in the world. Cadbury have

stayed with chocolate production and are now, if not quite the largest, probably one of

the best-known chocolate makers in the world.

Chocolate as we know it

The first mention of chocolate being eaten in solid form is when bakers in England

began adding cocoa powder to cakes in the mid 1600’s. Then in 1828 a Dutch chemist,

Johannes van houten, invented a method of extracting the bitter tasting fat or “cocoa

butter” from the roasted ground beans, his aim was to make the drink smoother and

more palatable, however he unknowingly paved the way for solid chocolate as we know

it.

Chocolate as we know it today first appeared in 1847 when fry & sons of Bristol, England

– mixed sugar with cocoa powder and cocoa butter (made by the van houten process) to

produce the first solid chocolate bar then in1875 a Swiss manufacturer,

Daniel peters, found a way to combine (some would say improve, some would say ruin)

cocoa powder and cocoa butter with sugar and dried milk powder to produce the first

milk chocolate.

Page 21: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

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 classifications 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

Page 22: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

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.

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 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.

Page 23: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

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 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 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

Page 24: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

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 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 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

Page 25: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

certain amounts of cocoa butter. A kind of aeration of the liquid chocolate paste then

takes place in the conches: its bitter taste gradually disappears and the flavor is fully

developed. The chocolate no longer seems sandy, but dissolves meltingly on the tongue.

It has attained the outstanding purity, which gives it its reputation.

CONSUMPTION OF CHOCOLATES IN INDIA

Chocolate consumption in India is extremely low. Per capita consumption is around 160

gms in the urban areas, compared to 8-10kg in the developed countries. In rural areas, it

is even lower. Chocolates in India are consumed as indulgence and not as a snack food.

A strong volume growth was witnessed in the early 90’s when Cadbury repositioned

chocolates from children to adult consumption. The biggest opportunity is likely to stem

Page 26: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

from increasing the consumer base. Leading players like Cadbury and Nestle have been

attempting to do this by value for money offerings, which are affordable to the masses.

NESTLE’

Nestle India

Page 27: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

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.

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

Page 28: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

Nestlé to provide and improve infant nutrition. From its first historic merger with the

Anglo-Swiss Condensed Milk Company in 1905, Nestlé has grown to become the world’s

largest and most diversified food Company, and is about twice the size of its nearest

competitor in the food and beverage sector.

Nestlé’s trademark of birds in a nest, derived from Henri Nestlé’s personal coat

of arms, evokes the values upon which he founded his Company. Namely, the values of

security, maternity and affection, nature and nourishment, family and tradition. Today,

it is not only the central element of Nestlé’s corporate identity but serves to define the

Company’s products, responsibilities, business practices, ethics and goals.

In 2004, Nestlé had around 247,000 employees worldwide, operated 500

factories in approx. 100 countries and offered over 8,000 products to millions of

consumers universally. The Company’s transparent business practices, pioneering

environment policy and respect for the fundamental values of different cultures have

earned it an enviable place in the countries it operates in. Nestlé’s activities contribute

to and nurture the sustainable economic development of people, communities and

nations. Above all, Nestlé is dedicated to bringing the joy of ‘Good Food, Good Life’ to

people throughout their lives, throughout the world.

Nestle’ Brands

Milk Products & Nutrition

Beverages

Prepared Dishes and Cooking Aids

Chocolates & Confectionary

MILK PRODUCTS AND NUTRITION:

NESTLÉ EVERYDAY Dairy Whitener

Page 29: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

NESTLÉ EVERYDAY Slim

NESTLÉ EVERYDAY Ghee

NESTLÉ MILKMAID

NESTLÉ Fresh 'n' Natural Dahi

NESTLÉ Fresh 'n' Natural Slim Dahi

NESTLÉ Jeera Raita

NESTLÉ MILKMAID Fruit yoghurt

NESTLÉ Milk

NESTLÉ Slim Milk

BEVERAGES:

NESCAFÉ CLASSIC

NESCAFÉ SUNRISE

NESTLÉ MILO

NESCAFÉ 3 in 1

NESCAFÉ Koolerz

PREPARED DISHES AND COOKING AIDS

MAGGI 2-MINUTE Noodles

MAGGI Vegetable Atta Noodles

MAGGI Dal Atta Noodles

MAGGI Rice Noodles Mania

MAGGI Sauces

MAGGI Pizza Mazza

MAGGI Healthy Soups

Page 30: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

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 KIT KAT is one of the most successful brands in the world and every year

over 12 billion NESTLÉ KIT KAT fingers are consumed around the globe.

Page 31: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

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!

Page 32: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

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 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 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

Page 33: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

smooth creamy texture, was ready to challenge the Swiss domination of the milk

chocolate market.

By 1913 Dairy Milk had become the company's best selling line and in the mid twenties

Cadbury's Dairy Milk gained its status as the brand leader, a position it has held ever

since.

COMPANY OVERVIEW OF CADBURY INDIA

Cadbury began its operations in 1948 by importing chocolates and then re-packing them

before distribution in the Indian market. After 59 years of existence, it today has five

company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur

(Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi,

Mumbai, Kolkota and Chennai). The corporate office is in Mumbai.

Currently Cadbury India operates in three sectors viz. Chocolate Confectionery, Milk

Food Drinks and in the Candy category.

In the Chocolate Confectionery business, Cadbury has maintained its undisputed

leadership over the years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk,

Éclairs and Celebrations. Cadbury enjoys a value market share of over 70% - the highest

Cadbury brand share in the world! Their flagship brand Cadbury Dairy Milk is considered

Page 34: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

the "gold standard" for chocolates in India. The pure taste of CDM defines the chocolate

taste for the Indian consumer.

In the Milk Food drinks segment their main product is Bournvita - the leading Malted

Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is the

undisputed leader.

The Cadbury India Brand Strategy has received consistent support through simple but

imaginative extensions to product categories and distribution. A good example of this is

the development of Bytes. Crispy wafers filled with coca cream in the form of a bagged

snack, Bytes is positioned as "The new concept of sweet snacking". It delivers the taste

of chocolate in the form of a light snack, and thus heralds the entry of Cadbury India

into the growing bagged Snack Market, which has been dominated until now by Salted

Bagged Snack Brands. Bytes was first launched in South India in 2003.

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

business, namely gums, mints, snacking and gifting. It is a part of the Cadbury

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. We employ around 60,00 people.

Page 35: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

Their heritage starts back in 1783 when Jacob Schweppe perfected

his process for manufacturing carbonated mineral water in Geneva,

Switzerland. And in 1824 John Cadbury opened in Birmingham selling

cocoa and chocolate.

These two great household names merged in 1969 to form Cadbury Schweppes

plc. Since then they have expanded their business throughout the world by a

programme of organic and acquisition led growth.

Concentrating on their core brands in beverages and confectionery since the

1980s, they have strengthened their portfolio through almost fifty acquisitions, including

brand icons such as Mott's, Canada Dry, Halls, Trident, Dentyne, Bubblicious, Trebor,

Bassett, Dr Pepper, 7 Up and Snapple.

- It employ 60,000 people in over 200 countries

- Worlds No 1 Confectionery company

- World's No 2 Gums company

- World's No 3 beverage company

Cadbury Brands:

Chocolates

Snacks

Beverages

Candy

SNACKS:

Bytes

Page 36: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

BEVERAGES

Bournvita

CANDY

Halls

CHOCOLATES

Dairy Milk

5 Star

Perk

Celebrations

Temptation

Eclairs

Gems

DAIRY MILK

The story of Cadbury Dairy

Milk started way back in 1905 at

Bournville, U.K., but the journey with chocolate lovers in India began in 1948.

The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of

Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens &

adults.

Page 37: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie,

chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a

delightful combination of milk chocolate and white chocolate. Giving consumers an

exciting reason to keep coming back into the fun filled world of Cadbury.

Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market.

5 STAR

the second largest after Cadbury Dairy Milk with a market share of 14%, Cadbury 5 Star

moves from strength to strength every year by increasing its user base.

Launched in 1969 as a bar of chocolate that was hard outside with soft caramel nougat

inside, Cadbury 5 Star has re-invented itself over the years to keep satisfying the

consumers taste for a high quality & different chocolate eating experience.

One of the key properties that Cadbury 5 Star was associated with was its classic Gold

colour. And through the passage of time, this was one property that both, the brand and

the consumer stuck to as a valuable association.

More recently, to give consumers another reason to come into the Cadbury 5 Star fold,

Cadbury 5 Star Crunchy was launched. The same delicious Cadbury 5 Star was now

available with a dash of rice crispies.

Page 38: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

PERK

Cadbury launched Perk in 1996. With its light chocolate and wafer construct, Cadbury

Perk targeted the casual snacking space that was dominated primarily by chips &

wafers.

With the rise of more value-for-money brands in the wafer chocolate segment,

Cadbury Perk unveiled two new offerings - Perk XL and XXL. In 2004, with an added dose

of 'Real Cadbury Dairy Milk' and an 'improved wafer', Perk became even more

irresistible

CELEBRATIONS

Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai and

dry- fruits during festive seasons.

Page 39: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

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

Cadbury Temptations is a range of delicious premium chocolate in five

flavours variants - Roast Almond Coffee, Honey Apricot, Mint Crunch, Black Forest

and Old Jamaica.

Page 40: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates
Page 41: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

RESEARCH METHODOLOGY

This chapter describes the methodology of the study. This project is based on

information collected from primary sources. After the detailed study, an attempt has

been made to present comprehensive analysis of consumption of Cadbury and nestle

chocolates consumed by the people. The data had been used to cover various aspects

like consumption, consumer’s preference and customer’s satisfaction regarding Cadbury

and Nestle chocolates. In collecting requisite data and information regarding the topic

selected, I went to the residents of Ludhiana 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.

Page 42: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

Data Collection:

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

Primary Source: The primary data comprises information survey of

“Comparative study of consumer behavior towards Nestle and Cadbury

chocolates”. The data has been collected directly from respondent with the help

of structured questionnaires.

Secondary Source: The secondary data was collected from internet,

References from Library.

Data Analysis:

The data is analyzed on the basis of suitable tables by using mathematical techniques.

The technique that I have used is bar technique.

Page 43: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates
Page 44: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

ANALYSIS OF THE STUDY

LIKING FOR THE CHOCOLATES

Table:1

Liking for the Chocolate Yes No

Number of Respondents 95 5

Chart:1

Page 45: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

From the above analysis of the given sample of 100 respondents it is concluded that out

of 100 people 95 people likes to eat chocolate while only 5 people don’t prefer to eat

chocolate.

DIFFERENT AGE GROUPS

Table:2

AGE GROUPS 0-10 10-20 20-30 ABOVE 30

NUMBER OF

RESPONDENTS

14 42 33 11

Chart:2

According to the above analysis it is concluded that I have surveyed 100 respondents

out of which 14, 42, 33, 11 belongs to age group 0-10, 10-20, 20-30, above30

respectively.

Page 46: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

PREFERENCE ACCORDING TO AGE GROUPS

Table:3

AGE GROUPS

BRANDS 0-10 10-20 20-30 ABOVE 30

CADBURY 7 35 24 5

NESTLE 5 6 8 5

NO CONSUMTION 2 1 1 1

Page 47: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

Chart:3

According to the above analysis it is concluded that people of different age groups

prefer mostly Cadbury brand of chocolate while Nestle brand is least preferred by the

age group between 10-20. People of age group above 30 equally likes to have both

brands.

BRAND PREFERENCE

Table:4

BRANDS PREFERENCE BY CONSUMERS

CADBURY 73

NESTLE 22

Page 48: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

Chart:4

From the above analysis of given sample of 93 respondents who eat chocolates it is

concluded that only 22 people prefer to eat Nestle chocolates while 73 people likes to

eat Cadbury chocolates.

PURCHASE OF CHOCOLATES

PURCHASE OF CADBURY CHOCOLATES

Table:5

CADBURY CHOCOLATES

SUB- BRANDS NUMBER OF RESPONDANTS

Page 49: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

DAIRY MILK 69

5 STAR 64

PERK 61

CELEBRATIONS 49

TEMPTATIONS 41

Chart:5

From the above analysis of given sample of 73 respondents who eat Cadbury chocolates

it is concluded that mostly people has purchased Dairy Milk sub-brand of Cadbury while

Temptation is least purchased by the people.

PURCHASE OF NESTLE CHOCOLATES

Table:6

Page 50: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

NESTLE CHOCOLATES

SUB- BRANDS NUMBER OF RESPONDANTS

KIT KAT 17

MUNCH 19

MILKY BAR 18

BAR- ONE 16

MILK CHOCOLATE 11

Chart:6

From the above analysis of given sample of 22 respondents who eat Nestle chocolates it

is concluded that mostly all sub-brands are purchased by people but top most is Munch

followed by Milky Bar and Kit Kat. While surveying we have found that many people are

not aware of Milk Chocolate.

OVERALL PURCHASE OF CHOCOLATES

Page 51: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

Table:7

OVERALL PURCHASE OF SUB- BRANDS OF CHOCOLATES

SUB-BRANDS PERCENTAGE OF PURCHASE

DAIRY MILK 13

5 STAR 12

PERK 11

CELEBRATIONS 9

TEMPTATIONS 7

KIT KAT 10

MUNCH 11

MILKY BAR 11

BAR ONE 9

MILK CHOCOLATE 7

Chart:7

From the above analysis it is concluded that overall Dairy Milk is purchased by people

followed by 5 Star while Temptation and Milk Chocolate is least purchased by people.

PREFERENCE OF SUBRANDS OF CHOCOLATES

Page 52: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

PREFERENCE OF SUBRANDS OF CADBURY CHOCOLATES

Table: 8

CADBURY CHOCOLATES

SUB- BRANDS GRAND TOTAL OF

PREFERENCE

AVERAGE

(GRAND TOTAL / No. OF

RESPONDANTS)

RANKS

DAIRY MILK 315 4.3 1

5 STAR 220 3 2

PERK 176 2.4 3

CELEBRATIONS 136 1.86 4

TEMPTATION 91 1.24 5

According to the above analysis it is concluded that in Cadbury Brand, Dairy milk is the

most preferred sub-brand as it is ranked first by the respondents. While Temptation is

the least preferred sub-brand of Cadbury chocolates.

Page 53: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

PREFERENCE OF SUB-BRANDS OF NESTLE CHOCOLATES

Table:9

NESTLE CHOCOLATES

SUB- BRANDS GRAND TOTAL

OF PREFERENCE

AVERAGE

(GRAND TOTAL / No. OF

RESPONDANTS)

RANKS

KIT KAT 70 3.18 1

MUNCH 64 2.9 3

MILKY BAR 65 2.95 2

BAR-ONE 45 2.05 4

MILK CHOCOLATE 30 1.36 5

According to the above analysis it is concluded that in Nestle Brand, Munch is the most

preferred sub-brand as it is ranked first by the respondents. While Milk Chocolate is the

least preferred sub-brand of Cadbury chocolates.

Page 54: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

INFLUENCING FACTORS DURING PURCHASE

OVERALL INFLUENCE

Table :10

FACTORS GRAND TOTAL AVERAGE RANK

FLAVOR/TASTE 435 4.58 1

PRICE 295 3.1 9

QUALITY 391 4.12 2

PACKAGING 344 3.62 4

FORM 301 3.17 7

BRAND 354 3.73 3

IMAGE 344 3.62 4

COLOR 297 3.13 8

SHAPE 268 2.82 10

QUANTITY 342 3.6 6

According to the above analysis it is concluded that on an average mostly people are

influenced by flavor/taste followed by quality, brand and image. It is surprised to know

that very few people are influenced by price followed by shape of the chocolate.

Page 55: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

INFLUENCING FACTORS DURING PURCHASE OF CADBURY CHOCOLATES

Table:11

FACTORS GRAND TOTAL AVERAGE RANK

FLAVOR/TASTE 335 4.6 1

PRICE 235 3.2 7

QUALITY 307 4.2 2

PACKAGING 277 3.79 3

FORM 231 3.16 8

BRAND 271 3.71 4

IMAGE 262 3.59 5

COLOR 224 3.07 9

SHAPE 213 2.92 10

QUANTITY 262 3.59 5

According to the above analysis it is concluded that on an average mostly people are

influenced by flavor/taste followed by quality, packaging and brand. Here color and

shape are not all influencing people while purchasing Cadbury chocolates.

Page 56: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

INFLUENCING FACTORS DURING PURCHASE OF NESTLE CHOCOLATES

Table:12

FACTORS GRAND TOTAL AVERAGE RANK

FLAVOR/TASTE 100 4.5 1

PRICE 60 2.72 5

QUALITY 84 3.82 2

PACKAGING 67 3.04 9

FORM 70 3.18 8

BRAND 83 3.77 3

IMAGE 82 3.73 4

COLOR 73 3.32 7

SHAPE 55 2.5 10

QUANTITY 80 3.64 6

According to the above analysis it is concluded that on an average mostly people are

influenced by flavor/taste followed by quality, brand and image. Here packaging and

shape are not all influencing people while purchasing Nestle chocolates.

Page 57: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

FACTORS GIVING MOST SATISFACTION TO CONSUMERS

OVERALL

Table:13

FACTORS GRAND TOTAL AVERAGE RANK

FLAVOR/TASTE 427 4.81 1

PRICE 337 3.6 4

QUALITY 367 3.86 2

PACKAGING 338 3.56 5

FORM 332 3.49 7

BRAND 358 3.77 3

IMAGE 328 3.45 9

COLOR 332 3.49 7

SHAPE 335 3.52 6

QUANTITY 328 3.45 9

According to the above analysis it is concluded that on an average people are most

satisfied with the flavor/taste of a chocolate followed by quality and brand. It is

surprising to know that although people are satisfied with quality but unsatisfied with

the quantity.

Page 58: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

IN CADBURY CHOCOLATE

Table:14

FACTORS GRAND TOTAL AVERAGE RANK

FLAVOR/TASTE 334 4.6 1

PRICE 269 3.68 5

QUALITY 282 3.86 2

PACKAGING 272 3.73 4

FORM 264 3.62 6

BRAND 282 3.86 2

IMAGE 247 3.38 10

COLOR 259 3.55 7

SHAPE 258 3.53 8

QUANTITY 255 3.49 9

According to the above analysis it is concluded that on an average people are most

satisfied with the flavor/taste of a chocolate followed by quality and brand. It is

surprising to know that although people are satisfied with quality but unsatisfied with

the quantity and image.

Page 59: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

IN NESTLE CHOCOLATE

Table:15

FACTORS GRAND TOTAL AVERAGE RANK

FLAVOR/TASTE 93 4.2 1

PRICE 68 3.09 8

QUALITY 85 3.86 2

PACKAGING 66 3 10

FORM 68 3.09 8

BRAND 76 3.45 5

IMAGE 81 3.68 3

COLOR 73 3.32 6

SHAPE 77 3.5 4

QUANTITY 73 3.32 6

According to the above analysis it is concluded that on an average people are most

satisfied with the flavor/taste of a chocolate followed by quality and image. It is

surprising to know that although people are satisfied with quality but unsatisfied with

the form and packaging.

Page 60: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

FORM PREFERENCE

Table:16

FORM OF CHOCOLATE NUMBER OF

RESONDENTS

HARD 33

NUTTIES 25

CRUNCHY 29

CHEW 20

Chart:8

Page 61: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

According to the above analysis it is concluded that most of the people likes to eat hard

chocolate and chew form of a chocolate is least preferred.

PACK OF CHOCOLATES PREFERED

Table:17

PACK SIZE NUMBER OF RESPONDENTS

SMALL 28

BIG 48

FAMILY PACK 19

Page 62: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

Chart:9

According to the above analysis it is concluded that out of sample of 95 people who eat

chocolates likes to buy big pack. Family pack is mostly preferred by aged people only.

PROMOTIONAL OFFERS

Table:18

PROMOTIONAL OFFERS NUMBER OF RESPONDENTS

FREE GIFTS 52

PRICE OFFER 23

ANY OTHER 20

Page 63: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

Chart: 10

According to the above analysis it is concluded that out of sample of 95 people who eat

chocolate 52 are attracted by free gifts, 23 by price offers while 20 were attracted by

some other reasons.

FACTORS AFFECTING PURCHASE

Table:19

FACTORS NUMBER OF RESPONDENTS

ADVERTISEMENT 65

SUGGESTION FROM FRIENDS AND RELATIVES 16

ATTRACTIVE DISPLAY 11

Page 64: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

DOCTORS ADVICE 15

BRAND AMBASSADORS 9

INGREDIENTS 25

Chart: 11

According to the above analysis it is concluded that Advertisement is the best measure

to attract customers to purchase more. Its impact is much more than other factors.

While friends and relatives and brand ambassadors also play a significant role in this

regard.

MEDIA OF ADVERTISEMENT

Table:20

MEDIA OF ADVERTISEMENT NUMBER OF RESPONDENTS

TELEVISION 82

Page 65: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

NEWSPAPERS 7

BROCHURES 3

HOARDING 4

DISPLAY 15

Chart:12

According to the above analysis it is concluded that television emerges as the best

media for advertisement of chocolates that compel consumers to buy. It is much more

than other ways as out of 95 respondents 82 are attracted to by through television

media while brochures are the least attracting media.

FREQUENCY OF CONSUMPTION

Table:21

FREQUENCY OF CONSUMPTION NUMBER OF RESPONDENTS

Page 66: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

ONCE IN A FORTNIGHT 16

DAILY 17

WEEKLY 39

MONTHLY 18

QUARTERLY 5

Chart:13

According to the above analysis it is concluded that mostly people purchase chocolates

weekly. Only 15 out of 95 purchase chocolates quarterly.

REASONABLE PRICE

Table:22

Page 67: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

PRICE OF CHOCOLATE NUMBER OF RESPONDENTS

BELOW 5 6

5-10 23

10-20 51

20-30 4

ABOVE 30 11

Chart: 14

According to the above analysis it is concluded that the consumer thinks 10-20 Rs is the

reasonable price of a chocolate. So it must be worthwhile to know this as it may effect

the sale of chocolates.

CONSUMER’S BRAND LOYALTY

Page 68: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

Table:23

BRAND LOYALTY ACTIONS NUMBER OF RESPONDENTS

POSTPONE YOUR PURCHASE 26

SWITCH OVER TO OTHER BRANDS 24

GO TO OTHER SHOP FOR SEARCH OF

PREFERED BRAND

45

Chart:15

According to the above analysis it is concluded that mostly people are loyal to the brand

as in the absence of availability of their preferred brand mostly people like to search for

it or they are ready to postpone their purchase.

REACTION OF CONSUMERS IF NEW BRAND IS INTRODUCED

Page 69: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

Table:24

SHIFT TO NEW BRAND OF THE PREFERED

PRODUCT

NUMBER OF RESPONDENTS

NO, NOT AT ALL 35

MAY CONSIDER 27

NO, SHALL NOT 4

CAN’T SAY 29

Chart:16

According to the above analysis it is concluded that mostly people are addicted to the

same flavor or taste and they don’t want to change it as out of 95 respondents 35 are

not ready to try new brand at any cost.

REASONS FOR NOT SWITCHING OVER TO OTHER BRANDS

Page 70: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

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

Page 71: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

FINDINGS

CONSUMER RESEARCH:

Consumer research deals with consumer and their

problems and solution to the problems. In this I came to know about the

consumers need and expectation levels regarding products and ascertainable

levels of consumer satisfaction.

PRODUCT RESEARCH:

Under product research I came to know about the

modification which consumers wants as to the quality, packing, shape, color, and

quantity etc of their favorite chocolate.

PRICING RESEARCH:

This includes ability to consume, to pay for the product,

how much a person can spend on his/her favorite chocolate. In this I have tried to

find out consumer’s price expectations and reactions.

ADVERTISING RESEARCH:

Under this I have concluded that whether the

advertisement appeals the consumers or not. This also includes evaluating and

selecting the proper media-mix and measuring advertising effectiveness.

Page 72: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

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.

Page 73: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

SUGGESTIONS AND RECOMMENDATIONS

Company should concentrate more on television for advertisement, as mostly

people get attracted through television only.

For promotional offers, company should go for free gifts rather than going for

other ways.

Nestle company should concentrate on its packing as people are least satisfied

with it while Cadbury should concentrate on the shape of a chocolate.

People are unsatisfied with the price and quantity of chocolate so companies

should concentrate in this regard also.

Page 74: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates
Page 75: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

BIBLIOGRAHY

http://www.cadburyindia.com

http://www.nestle.com

http://www.aphrodite-chocolates.co.uk/history_chocolate.htm

http://www.google.com

http://www.cadbury.co.nz/carnival/index.htm

http://www.packaging -technology.com/…/cadbury4.html

http://www.chocolatereview.co.uk

http://en.wikipedia.org/wiki/preference

Page 76: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates
Page 77: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

QUESTIONNAIRE

PROJECT REPORT ON CONSUMER PREFERENCETOWARDS NESTLE AND CADBURY

CHOCOLATES

Que1. Do you eat chocolate?

Yes No

Que2. Which brand of chocolate do you prefer?Cadbury Nestle

Que3. Which sub-brand you have purchased?

Cadbury Nestle

Dairy Milk Kit Kat

5Star Munch

Perk Milky Bar

Celebrations Bar-One

Page 78: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

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 Munch

Perk Milky Bar

Celebrations Bar-One

Temptation Milk Chocolate

Que5. How much importance do you give to the following factors when you purchase a chocolate? (Tick in the desired column)

Factors Very Important

Important Normal Least Important

None

Flavor/tastePriceQualityPackagingFormBrandImageColorShapeQuantity

Que6. How much are you satisfied with the following factors in your preferred chocolate? (Tick in the desired column)Factors Very

SatisfiedSatisfied Normal Least

SatisfiedCan’t Say

Flavor/tastePriceQualityPackaging

Page 79: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

FormBrandImageColorShapeQuantity

Que7. Which form of a chocolate do you like? Hard Nutties

Crunchy Chew

Que8. What pack do you purchase?Small Big Family Pack

Que9. Which promotional offers attract you most?Free gifts Price Offer Any other

Que10.Which of these factors affect your purchase? Advertisement

Suggestion from friends and relatives

Attractive Display

Doctors Advice

Brand Ambassadors

Ingredients

Que11. Which media of advertisement influence your purchase?Television Newspapers Brochures

Hoarding Display

Que12. How frequently do you purchase chocolates?Once in a fortnight Daily

Page 80: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

Weekly MonthlyQuarterly

Que13. What according to you is the reasonable price of chocolate?

Below5 5-10 10-20

20-30 Above 30

Que14. If your preferred brand is not available for repeat purchase then what will you do?

Postpone your purchase

Switch over to other brand

Go to the other shop to search for your preferred brand

Que15. If another brand of the same product appears in the market, will you prefer to stop buying this brand and buy the new brand?

No, not at all I may consider

No, I shall not can’t say

Que16. If you don’t like to change to the new brand, then what are the reasons for

continuing to purchase the old brand?

PERSONAL DETAILS

Name:

Address:Age:

Between 0-10 Between10-20Between 20-30 Above 30

Gender:Phone Number:Marital status:Education:Profession:

Page 81: 8201172 Study of Consumer Behaviour Towards Nestle and Cadbury Choclates

THANKS