“A STUDY ON CONSUMER BEHAVIOUR TOWARDS DIFFERENT

CHOCOLATES BRANDS IN KOLKATA CITY”

A RESEARCH PROJECT SUBMITTED IN PARTIAL FULLFILLMENT OF

THE REQUIREMENTS FOR THE DEGREE OF MASTERS IN BUSINESS
ADMINISTRATION

BY-ADRITA MUKHERJEE
STUDENT OF INSTITUTE OF MANAGEMENT STUDY

GUIDE-Prof.MOUMITA DEY SARKAR

INSTITUTE OF MANAGEMENT STUDY
MUKUNDAPUR,KOLKATA

YEAR: 2010-11

DECLARATION BY THE STUDENT

I hereby declare that this Research Project titled “A STUDY ON CONSUMER

BEHAVIOUR TOWARDS DIFFERENT CHOCOLATE BRANDS IN KOLKATA
CITY” submitted by us is based on actual work carried out by me under the guidance and
supervision of Prof. MOUMITA DEY SARKAR.Any reference to work done by any
other person or institution or any material obtained from other sources have been duly
cited and referenced.

ACKNOWLEDGEMENT

Every piece of hard work requires the combined efforts and talents of many people.I
would like to take this opportunity to thank PROF.MOUMITA DEY SARKAR,the
respected faculty of INSTITUTE OF MANAGEMENT STUDY,who taught us the
RESEARCH METHODOLOGY PAPER and was my guide for extending her unparallel
help for successful completion of the research work,She has enriched my knowledge and
gave me a moral support to do this report.I am also highly grateful to her for showing the
right path and encouraging me for the preparation of this report.
A special word of thanks and gratitude goes to those people(respondents) who give me
their valuable time and related information about my research work.I am also very much
thankful to my parents and friends who have given a lot of support and guidance
throughout the term of my research study.
I have received a lot of knowledge about how to do a research work while doing this
project study which is definitely going to help in my future career. However, I am
responsible for any shortcomings remained in this report.
ABSTRACT
The main objective of this project study is to help the students to develop ability of
research of the products and practical technique to solve real life problem related to the
products.In this grand research project report it has been attempted to analyze the needs
and preferences of the customers and suggest them the most suitable product solutions, as
well as it is also analyzed the brand awareness among the people

INDEX PAGE NO.

1. INTRODUCTION
2. LITERATURE REVIEW OF THE STUDY
3.SCOPE AND OBJECTIVES OF STUDY
4.COMPANY PROFILE
5. RESEARCH METHODOLOGY
a)RELEVANCE OF STUDY
b)RESEARCH PROBLEM
c) RESEARCH DESIGN
d) DATA COLLECTION
 SAMPLING DESIGN
 INSTRUMENT
 MODE OF DATA COLLECTION
e) DATA ANALYSIS
6. FINDINGS
7. SUGGESTIONS
8. CONCLUSION
9. LIMITATION
10. REFERENCE
11. APPENDIX
INTRODUCTION
In this research I have surveyed the product performance and buying behavior
of the famous brands of chocolates – Nestle,Cadbury and Amul,which are consumed by
people of all ages. During this research I have interacted with people of “kolkata”at
different areas.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.

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.Today
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
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 this study restricts itself to the analysis of consumer preferences, perception
and consumption of Cadbury,Nestle and Amul Chocolates. There are many other brands
of chocolates available but my study is limited to three major players of chocolates
leaving behind the others. The scope of my study is also restricts itself to Kolkata region
only.

OBJECTIVES OF THE STUDY

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

Nestle,Amul and Cadbury chocolates.Objectives of the study are:
a)The objective is to know about the customer satisfaction level associated
with the product and the customer preference level.
b)To increase customer satisfaction and recapture the market share by fulfilling the
customer needs.
c)To study the factors affecting the consumption pattern.

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:
1)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.
2)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.
3)The chance of biased response can’t be eliminated though all necessary steps were
taken to avoid the same.

Chocolate
The very word makes your mouth water.
Chocolate is more than just a food: it’s a state of mind.
Industry Overview
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INDUSTRY OVERVIEW
History of chocolate:
The origin of chocolate can be traced back to the ancient Maya and Aztec civilizations in
Central America, who first enjoyed “chocolaty” 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 16th century, by this time the Aztecs had created a
powerful empire, and the Spanish armies conquered Mexico. Don Cortes was made
captain general and governor of Mexico.
When he returned to Spain in1528 he loaded his galleons with cocoa beans and
equipment for making the chocolate drink. Soon “chocolate” became a fashionable drink
enjoyed by the rich in Spain.
Chocolate across Europe
An Italian traveler, Francesco carletti, was the first to break the Spanish monopoly. He
had visited Central America and seen how the Indians prepared the cocoa beans and how
they made the drink, and by 1606 chocolate was well established in Italy.
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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 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 xocolat, the Spanish conquistadors found this
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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
xocolat: “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
Xocolat 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!
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, and
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.
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Back to the America’s
Events 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 world’s 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.
It’s probably before the time of the English civil war between parliament and King
Charles 1st that the Quaker’s who evolved from the puritans, first began their historic
association with chocolate. Because of their pacifist religion, they were prohibited from
many normal business activities, so as an industrious people with a strong belief in the
work ethic (like the puritans); they involved themselves in food related businesses and
did very well. Baking was a common occupation for them because bread was regarded as
the biblical “staff of life”, and bakers in England were the first to add chocolate to cakes
so it would be a natural progression for them to start making pure chocolate. They were
also heavily involved in breakfast cereals but that’s another story.
What is certain is that the fry, row tree and Cadbury families in England among others,
began chocolate making and in fact Joseph fry of fry &sons (founded 1728 in Bristol,
England) is credited with producing and 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.
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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.
HOW CADBORY CHOCOLATE IS MADE
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
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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.
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
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(approximately 50% of the bean) contained in the beans to melt, producing a thick, liquid
mixture.
This is dark brown in color with a characteristic, strong odour. During cooling it
gradually sets: this is the cocoa paste.
At this point the production process divides into two paths, but which soon join again. A
part of the cocoa paste is taken to large presses, which extract the cocoa butter. The other
part passes through various blending and refining processes, during which some of the
cocoa butter is added to it. The two paths have rejoined.
CocoaButter
The cocoa butter has important functions. It not only forms part of every
recipe, but it also later gives the chocolate its fine structure, beautiful
lustre and delicate, attractive glaze.
Cocoa Powder
After the cocoa butter has left the press; cocoa cakes are left which still contain a 10 to
20% proportion of fat depending on the intensity of compression.
These cakes are crushed again, ground to powder and finely sifted in
several stages and we obtain a dark, strongly aromatic powder, which is
excellent for the preparation of delicious drinks - cocoa. Cocoa paste,
cocoa butter, sugar and milk are the four basic ingredients for making
chocolate. By blending them in accordance with specific recipes the three types of
chocolate are obtained which form the basis of ever product assortment, namely:
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 millimeter.)
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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 "conch a", 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 90’s 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.
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Overview
Of
Organizations
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OVERVIEW OF ORGANIZATIONS
NESTLE
Nestle India
Nestle’ India is a subsidiary of Nestle’ S.A. of Switzerland. The company insists on
honesty, integrity and fairness in all aspects of its business and expects the same in its
relationships.
Nestle India- Presence across India
Beginning with its first investment in Moga in 1961, Nestlé’s regular and substantial
investments established that it was here to stay. In 1967, Nestlé set up its next factory at
Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the area into soluble tea.
The Nanjangud factory (Karnataka), became operational in 1989, the Samalkha factory
(Haryana), in 1993 and in 1995 and 1997, Nestlé commissioned two factories in Goa at
Ponda and Bicholim respectively. Nestlé India is now putting up the 7th factory at Pant
Nagar in Uttaranchal.
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Nestle’ Story
Nestlé was founded in 1867 on the shores of Lake Geneva in Vevey, Switzerland and its
first product was “Farine Lactée Nestlé”, an infant cereal specially formulated by Henri
Nestlé to provide and improve infant nutrition. From its first historic merger with the
Anglo-Swiss Condensed Milk Company in 1905, Nestlé has grown to become the
world’s largest and most diversified food Company, and is about twice the size of its
nearest competitor in the food 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
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MILK PRODUCTS AND NUTRITION:
NESTLE EVERYDAY Dairy Winter
NESTLE EVERYDAY Slim
NESTLE’S EVERTDAY Ghee
NESTLE’S MILK MAID
NESTLE’S Fresh and Natural Dahi
NESTLE’S Jeera Raita
NESTLE’S MILKMAID Fruit Yoghurt
NESTLÉ Milk
NESTLÉ Slim Milk
BEVERAGES:
NESCAFÉ CLASSIC
NESCAFÉ SUNRISE
NESTLÉ MILO
NESCAFÉ 3 IN 1
NESCAFÉ KOOLREZ
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PREPARED DISHES AND COOKING AIDS
MAGGI 2-MINUTE NOODELS
MAGGI VEGETABLE ATTA NOODELS
MAGGI DAL ATTA NOODELS
MAGGI RICE NOODELS MAIN
MAGGI SAUCES
MAGGI PIZZA MAZZA
MAGGI HEALTHY SOUPS
MAGGI -HEALTHY SOUPS SANJEEVNI
MAGGI MAGIC CUBES
CHOCOLATES & CONFECTIONARY
NESTLÉ KIT KAT
NESTLÉ KIT KAT LITE
NESTLÉ MUNCH
NESTLÉ MUNCH POP CHOC
NESTLÉ MILKY BAR
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NESTLÉ BAR- ONE
NESTLÉ FUNBAR
NESTLÉ MILK CHOCOLATE
POLO POWER MINT
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.
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!
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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!
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CADBURY
Process of Manufacturing Cadbury Chocolate:
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.
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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 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. Byte was first launched in South India in 2003.
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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 60,000 people.
Their heritage starts back in 1783 when Jacob Schweppes 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 employs 60,000 people in over 200 countries
- Worlds No 1 Confectionery company
- World's No 2 Gums company
- World's No 3 beverage company
32
NIRANJANA MAJITHIA DEGREE COLLEGE OF COMMERCE
Cadbury Brands:
 Chocolates
 Snacks
 Beverages
 Candy
SNACKS
Bytes
BEVERAGES
Bournvita
CANDY
Halls
CHOCOLATES
Dairy Milk
5 Star
Perk
Celebrations
Temptation
Éclairs
Gems
DAIRY MILK
The story of Cadbury Dairy Milk started way back in 1905 at Bourneville, 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
33
NIRANJANA MAJITHIA DEGREE COLLEGE OF COMMERCE
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.
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.
34
NIRANJANA MAJITHIA DEGREE COLLEGE OF COMMERCE
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.
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
35
NIRANJANA MAJITHIA DEGREE COLLEGE OF COMMERCE
Ever see people hide away their chocolate since they don’t want to share
it! If you have, then it’s likely to be a bar of Cadbury Temptations!
Cadbury Temptations is a range of delicious premium chocolate in five
flavours.
Research revealed a niche segment of “chocoholics” - those exposed to
international chocolates and those who love a variety of chocolates but
possibly find the price of international chocolates too high. Cadbury
Temptations is a range targeted at this segment of discerning chocolate
lovers.
The Cadbury Temptations range is available in 5 delicious flavour variants
- Roast Almond Coffee, Honey Apricot, Mint Crunch, Black Forest and Old
Jamaica. With its international quality chocolate Temptations soon became a
popular brand for "chocoholics".
36
NIRANJANA MAJITHIA DEGREE COLLEGE OF COMMERCE

RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY
SR. NO. PARTICULARS
1 RELEVANCE OF STUDY
2 RESEARCH PROBLEM
3 RESEARCH OBJECTIVE
4 RESEARCH DESIGN
5 SCOPE OF THE STUDY
6 DATA COLLECTION
 SAMPLING DESIGN
 INSTRUMENT
 MODE OF DATA COLLECTION
7 LIMITATION OF STUDY
8 DATA ANALYSIS
38
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 elected, we went to the residents of peoples and collected the data.
1. Relevance of the Study
This research is been conducted to survey the product performance and buying behavior
of consumer in selection of chocolates.
The relevance of the study is to 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 we have interacted with people of Mumbai City. This
research is to know which particular brand of chocolate is most preferred by people of
different age groups.
2. Research Problem
Every research has their own problem and limitation but good researcher have to
overcome that problem by their skill.
In this research problem we would like to understand and analyze about the chocolates
products available at Mumbai and collect the feedback from group of people and we
wanted to know the developments made in direction of chocolates industry.
3. Research Objective
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.
4. Research Design
For any researcher the research methodology is the most important criteria to decide
before the actual research process starts.
There are many methods for conducting the research some of them are as under;
a) Descriptive vs. Analytical b) Applied vs. Fundamental c) Quantitative vs. Qualitative
d) Conceptual vs. Empirical e) Field setting or laboratory testing research The design of a
research is a plan or a model that helps researcher to conduct a formal investigation and
survey. It is an application of methods and procedures for acquiring the information
needs for getting a desire out come. It decides the sources of data and methods for
gathering data. A good design insures that the information obtained is relevant to the
research question and that it was collected by objectives. Since, research design is simply
the frame work or plan for a study. It is a blue print that of a house devised by an
architect. Our approach to research is descriptive and quite specific.
Out of these all research methods the research method, which was most suitable to our
research, was descriptive research because it provides us all the opportunities to cover
the all the aspect that We require to conduct the research and get an appropriate out
come.
Descriptive Research: Descriptive research includes surveys and fact –
finding enquires of Texhiets m aat jporr epsuernpt.o Isne soof cdiaels
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hoeft estna tu eds ieof fft eharfeef antiter rksm ian sdE sixt.
pmwohestath tf oahdcat sio sh rtaehpsapetea tnrhceehd r foeorsr ew
dahrecashct reisirp hhtiaavpse p nreoen sicenoagnr. tcrho ls touvdeire
sth. Te hvea rmiaabilne sc;h haera ccatner oisntliyc roef ptohrist
A) Primary Data
The data, which are collected for the first time, directly from the respondents to the base
of knowledge & belief of the research, are called primary data.
The normal procedure is to interview some people individually or in a group to get a
sense of how people feel about the topic.
So far as this research is concerned, primary data is the main source of information
provided by the respondents.
B) Secondary Data
When the data is collected and compiled in the in a published nature it is called
Secondary data.
So far as this research is concerned internet, many brochures and magazines have been
referred too.
5. DATA COLLECTION
a) SAMPLING DESIGN
It is true that it is very difficult to do research with whole universe. As we know that it is
not feasible to go with population survey because of the numerous Doctors and their
scattered location. So for this purpose sample size has to be determined well in advanced
and selection of the sample also has to be scientific so that it represents the whole
universe.
So far as this research is concerned, the sample size is 100.
b) INSTRUMENT
Taking into consideration research instrument selected by us is questionnaire because it
gives more flexibility in terms of data and it has been asked to the responder personally
and has an idea of getting an important unknown data that can be collected through their
behavior.
c) MODE OF DATA COLLECTION
Data collection mode is personal visit and filling up of the questionnaire.
6. LIMITATION OF 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
selfadministered
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.
DATA ANALYSIS
Que1. Do you eat chocolate?
Analysis & 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
weakly basis or may be they are eating any other brand of chocolate.
Que2. Which brand of chocolate do you prefer?
Analysis & 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 36% 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.

Que3. Which sub-brand you have purchased?

Analysis & Interpretation:
In this survey nestle is having five sub-brands like kitkat, Munch, Milkybar, Barone,milk
chocolates and their consumption are like kitkat 33% ,munch 56 ,milky bar 3% ,bare one
5% ,and milk chocolate 3%. And if we talk about Cadbury the sub-brand of the 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.

Que4. Rank the sub-brands of chocolates according to your preference? (1 for most
preferred)
NESTLE
CADBURY
Analysis & 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 Much 20%less which is a good sigh for Nestle and the less
consumption of the Nestle product is Milk bar & Milk Chocolate the market share is only
3% and in 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.
Que5. How much importance do you give to the following factors when you
purchase a chocolate? (Tick in the desired column)

Taste/ Flavour Price Packaging Quantity

Very Imp. 88 1 12 81
Important 9 3 6 12
Normal 2 96 4 6
Least Imp. 1 0 78 1
Analysis & Interpretation:
Whenever we are consuming any food product our main focus in on the quality and price
in India there is more concentrating on the quality of product rather than other parameters
of the product in this survey I found that the basic concentration of 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 dose 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 they are ready to pay any price for that product.

Que6. Which form of a chocolate do you like?

Analysis & interpretation:
Every person have there own taste and preferences towards the eatable product in
chocolates there are four varieties available in the market among this 47% of the
consumer like hard chocolates, 29% of the consumer like crunchy chocolates, 18% of the
consumer like nutties chocolates & only 6% of the consumer like Chew chocolates.

Que7. What pack do you purchase?

Analysis & Interpretation:
The chocolates 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
chocolates, 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.

Que8. Which promotional offers attract you most?

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

Que9.Which of these factors affects your purchase?

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

Que10. Which media of advertisement influence your purchase?

Analysis & Interpretation:
In today’s 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 Hoardings, 3% of the advertisement given on
local as well as national newspapers, & 23% are using display ads.

Que11. If your preferred brand is not available for repeat purchases then what will
you do?
Analysis & Interpretation:
Every person is having there own taste & preferences. Some consumer are compromising
with there taste and preferences 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 don’t
compromise for the same.

Findings
Findings
CONSUMER RESEARCH:
Consumer research deals with consumer and their problems and solution to the
problems. In this we 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.
From the one and half month experience of our research project with Consumer
preference towards Nestle and Cadbury Chocolates, We have come to know lot things
and it has enhanced our knowledge to great extent. We found many things which are well
executed by distributors. Here are some of the key findings given by us are purely based
on our research. It doesn’t have any kind of bias from our side.
They are given as under:
By doing the comparison of Nestle and Cadbury chocolates, we have found that the
preference of the chocolates more preferred by the consumer is Cadbury.
From the analysis we have found that Nestlé’s some brand has covered 50% of the
market in one product (Munch) of the chocolates which is a very good sign for the
company.
Through the research we found that consumer is very conscious about the quality of the
product in that matter they are not ready to compromise. And we found both company
product are very qualitative.
In some cases we found that if a product is not available in the market than some
consumer would to switchover to another product or brand.
So from these survey we have found that the consumption of the chocolates are more in
children and teenage group though having any occasion or not having any occasion.
The most selling product of both the companies is in small size of chocolates and there
market share is 73% because it’s not much costlier and is also easily available &
affordable.

Suggestions
And
Recommendations
SUGGESTIONS AND RECOMMENDATIONS
Chocolates products at Mumbai city are available in comparison to previous years, but
still there is requirement of development in Chocolate products. Due to increasing overall
cost in Chocolate Products everywhere, cost format should be made as such that it is
affordable to each and everyone in the society. In this we also found that if the demanded
brand is not available, so at that time the customers switch over the brand of the
chocolate so, here the company should build up the healthy distribution channel by which
company can attract the customers and company loose the fear from the market.
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.
Conclusion
CONCLUSION
A survey of the people has been conducted to know the liking pattern of the two products
Cadbury and Nestle. It is observed that overall people like to eat Cadbury brand rather
than Nestle. It is concluded that mostly people preferred Dairy Milk of Cadbury due to its
flavor/taste, quality and image and due to its hard form. Some people often like to have a
chocolate with good flavor, quality hard form. Some people often like to have a chocolate
with good flavor, quality 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.

References
REFERENCES
Web sites:
 www.nestle.in
 www.business-standard.com
 www.cadburyindia.com
 www.scribd.com
 www.managementparadise.com
 www.google.com
Books:
1. Marketing Management
- Philip Kotler
2. Research Methodology
- C. R. Kothari

Appendix
“A STUDY OF CONSUMER PREFERENCE TOWARDS CADBURY AND NESTLE
CHOCOLATES IN ANDHERI A WESTERN SUBURB OF MUMBAI CITY”

QUESTIONNAIRE
(Please tick wherever necessary)
 1. Personal Profile:-

Name :

Address :

Age :

Between 0-10 Between10-20

Between 20-30 Above 30

Gender : Male Female

Educational Qualification:

Profession :

Que1. Do you eat chocolate?

Yes No

Que2. Which brand of chocolate do you prefer?

Cadbury Nestle
Que3. Which sub-brand you have purchased?
Cadbury Nestle
Dairy Milk Kit Kat

5Star Munch
Perk Milky Bar

Celebrations Bar-One

Temptation Milk Chocolate

Que4. Rank the sub-brands of chocolates according to your preference? (1

for most preferred)

Cadbury Nestle

Dairy Milk 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 Normal Least

Important Important

Flavor/taste

Price

Quality

Packaging
Que6. Which form of a chocolate do you like?

Hard Nutties

Crunchy Chew

Que7. What pack do you purchase?

Small Big Family Pack

Que8. Which promotional offers attract you most?

Free gifts Price Offer Any other: ___________

Que9. Are you influenced by advertisements to buy or change a particular

brand of chocolate?
Yes No

Que10. Which media of advertisement influence your purchase?

Television Newspapers Brochures

Hoarding Display

Que11. 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 other shop to search for your preferred brand

Que12. Do you feel that the product characteristics match with those
mentioned in the advertisement?

Yes No
Que13. Any Suggestions if you want to give us:
_____________________________________________________________
_____________________________________________________________
_____________________