Beruflich Dokumente
Kultur Dokumente
27319103911
EXECUTIVE SUMMARY
This project is an analysis of the prevailing customers preferences towards chocolates at Nestle India Limited. It identifies how the company analyzes its position in the market in one of its segment that is, chocolates in comparison with its competitor that is, Cadbury and in which areas it needs some improvement. To study these objectives, the researcher prepared a questionnaire on the same. These questionnaires were distributed among 100 respondents. Sales are the main factor that contributes to the growth of a particular organization. So it is very important that the company always tries to maximize its sales by applying suitable marketing strategies for different segment of markets and for different age groups.This report also concludes that from the two major and larger brands in chocolate industry, which one is much better and preferable among buyers.
Nestle and Cadbury, both have a tough competition in todays era so it is very important for nestle to identify the gap and find a competitive edge over their competitors if they want to sustain in the market.
According to a survey, it is also clear that Nestle is more active and popular in noodles rather than chocolates. But as they have many variants in the market for chocolates also therefore it is very important to analyze various strengths and weaknesses of nestle in this market segment.
A structured questionnaire is used as an instrument to analyze Nestle in terms of chocolates by comparing it with Cadbury. It helped in identifying the preferences of various consumers towards chocolates of Nestle and Cadbury.
27319103911
CHAPTER-1 INTRODUCTION
27319103911
27319103911
Industry Overview
27319103911
History of chocolate:
The origin of chocolate can be traced back to the ancient Maya and Aztec civilizations in Central America, who first enjoyed chocolate a much-prized spicy drink made from roasted cocoa beans. Throughout its history, whether as cocoa or drinking chocolate beverage or confectionary treat, chocolate has been a much sought after food.
The Aztec empire Chocolate(in the form of a luxury drink) was consumed in large quantities by the aztecs: the drink was described as finely ground, soft, foamy, reddish, bitter with chilli water, aromatic flowers, vanilla and wild bee honey. The dry climate meant the Aztecs were unable to grow cocoa trees, and had to obtain supplies of cocoa beans from tribute or trade.
Don Cortes The Spanish invaded Mexico in the 16th century, by this time the Aztecs had created a powerful empire, and the Spanish armies conquered Mexico. Don Cortes was made captain general and governor of Mexico. When he returned to Spain in1528 he loaded his galleons with cocoa beans and equipment for making the chocolate drink. Soon chocolate became a fashionable drink enjoyed by the rich in Spain.
Chocolate across Europe An Italian traveler, Francesco carletti, was the first to break the Spanish monopoly. He had visited Central America and seen how the Indians prepared the cocoa beans and how they made the drink, and by 1606 chocolate was well established in Italy.
27319103911
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 1650s
First chocolate for eating Up until this point all chocolate recipes were based on plain chocolate. It was an English doctor, sir Hanss Sloane, who- after traveling in south America- focused on cocoa and 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.
27319103911
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 Aztecs 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 chocolate as it became known, was brought to Europe by Cortez, by this time the conquistadors had learned to make the drink more palatable to European tastes by mixing the ground roasted beans with sugar and vanilla ( a practice still continued today), thus offsetting the spicy bitterness of the brew the Aztecs drank.
The first chocolate factories opened in Spain, where the dried fermented beans brought back from the new world by the Spanish treasure fleets were roasted and ground, and by the early 17 th 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 sheeps droppings, they burned the whole ship in frustration. If only they had known, chocolate was so expensive at that time, that it was worth its weight in silver ( if not gold), chocolate was treasure indeed !
Within a few years, the cocoa beverage made from the powder produced in Spain had become popular throughout Europe, in the Spanish Netherlands, Italy, France, Germany and in about 1520 it arrived in England.
27319103911
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.
Events went full circle when English colonists carried chocolate (and coffee) with them to Englands colonies in North America. Destined to become the United States of America and Canada, they are now the worlds largest consumers by far of both chocolate and coffee, consuming over half of the words total production of chocolate alone.
The Quakers The Quakers were, and still are, a pacifist religious sect, an offshoot of the puritans of English civil war and Pilgrim Fathers fame and a history of chocolate would not be complete without mentioning their part in it. Some of the most famous names in chocolate were Quakers, who for centuries held a virtual monopoly of chocolate making in the English speaking world fry, Cadbury and row tree are probably the best known.
It probably before the time of the English civil war between parliament and king Charles 1st that the Quakers who evolved from the puritans, first began their historic association with chocolate. Because of their pacifist religion, they were prohibited from many normal business activities, so as an industrious people with a strong belief in the work ethic (like the puritans), they involved themselves in food related businesses and did very well. Baking was a common occupation for them because bread was regarded as the biblical staff of life, and bakers in England were the first to add chocolate to cakes so it would be a natural progression for them to start making pure chocolate. They were also heavily involved in breakfast cereals but thats another story.
27319103911
What is certain is that the fry, row tree and Cadbury families in England among others, began chocolate making and in fact Joseph fry of fry &sons (founded 1728 in Bristol, England) is credited with producing and selling the worlds first chocolate bar. Frys have now all but disappeared (taken over by Cadbury) and row tree have merged Swiss company nestle, to form the largest chocolate manufacturer in the world. Cadbury have stayed with chocolate production and are now, if not quite the largest, probably one of the best-known chocolate makers in the world.
Chocolate as we know it The first mention of chocolate being eaten in solid form is when bakers in England began adding cocoa powder to cakes in the mid 1600s. Then in 1828 a Dutch chemist, Johannes van houten, invented a method of extracting the bitter tasting fat or cocoa butter from the roasted ground beans, his aim was to make the drink smoother and more palatable, however he unknowingly paved the way for solid chocolate as we know it.
Chocolate as we know it today first appeared in 1847 when fry & sons of Bristol, England mixed sugar with cocoa powder and cocoa butter (made by the van houten process) to produce the first solid chocolate bar then in1875 a Swiss manufacturer, Daniel peters, found a way to combine (some would say improve, some would say ruin) cocoa powder and cocoa butter with sugar and dried milk powder to produce the first milk chocolate.
27319103911
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.
The Varieties
There are two quite different basic classifications of cocoa, under which practically all varieties can be categorized: Criollo and Forastero cocoas.The pure variety of the Criollo tree is found mainly in its native Equador and Venezuela. The seeds are of finer quality than those of the Forastero variety . They have a particularly fine, mild aroma and are, therefore, used only in the production of high-quality chocolate and for blending. However, Criollo cocoa accounts for only 10% of the world crop. The remaining 90% is harvested from trees of the Forastero family, with its many hybrids and varieties. The main growing area is West Africa. The cocoa tree can flourish only in the hottest regions of the world.
The Harvest
Immediately after harvesting, the fruit is treated to prevent it from rotting. At fermentation sites either in the plantation or at, collecting points, the fruit is opened.
10
27319103911
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.
11
27319103911
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.
12
27319103911
Cocoa Butter
The cocoa butter has important functions. It not only forms part of every recipe, but it also later gives the chocolate its fine structure, beautiful lustre and delicate, attractive glaze.
Cocoa Powder
After the cocoa butter has left the press; cocoa cakes are left which still contain a 10 to 20% proportion of fat depending on the intensity of compression. These cakes are crushed again, ground to powder and finely sifted in several stages and we obtain a dark, strongly aromatic powder, which is excellent for the preparation of delicious drinks - cocoa. Cocoa paste, cocoa butter, sugar and milk are the four basic ingredients for making chocolate. By blending them in accordance with specific recipes the three types of chocolate are obtained which form the basis of ever product assortment, namely:
Kneading
In the case of milk chocolate for example, the cocoa paste, cocoa butter, powdered or condensed milk, sugar and flavoring - maybe vanilla - go into the mixer, where they are pulverized and kneaded.
Rolling
Depending on the design of the rolling mills, three or five vertically mounted steel rollers rotate in opposite directions. Under heavy pressure they 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.)
13
27319103911
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.
14
27319103911
15
27319103911
COMPANY OVERVIEW
16
27319103911
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.
17
27319103911
Nestle Story
Nestl was founded in 1867 on the shores of Lake Geneva in Vevey, Switzerland and its first product was Farine Lacte Nestl, an infant cereal specially formulated by Henri Nestl to provide and improve infant nutrition. From its first historic merger with the Anglo-Swiss Condensed Milk Company in 1905, Nestl has grown to become the worlds largest and most diversified food Company, and is about twice the size of its nearest competitor in the food and beverage sector.
Nestls trademark of birds in a nest, derived from Henri Nestls personal coat of arms, evokes the values upon which he founded his Company. Namely, the values of security, maternity and affection, nature and nourishment, family and tradition. Today, it is not only the central element of Nestls corporate identity but serves to define the Companys products, responsibilities, business practices, ethics and goals.
In 2004, Nestl had around 247,000 employees worldwide, operated 500 factories in approx. 100 countries and offered over 8,000 products to millions of consumers universally. The Companys transparent business practices, pioneering environment policy and respect for the fundamental values of different cultures have earned it an enviable place in the countries it operates in. Nestls activities contribute to and nurture the sustainable economic development of people, communities and nations. Above all, Nestl is dedicated to bringing the joy of Good Food, Good Life to people throughout their lives, throughout the world.
18
27319103911
Nestle Brands
Milk Products & Nutrition Beverages Prepared Dishes and Cooking Aids Chocolates & Confectionary.
NESTL Milk
19
27319103911
BEVERAGES:
NESCAF CLASSIC
NESCAF SUNRISE
NESTL MILO
NESCAF 3 IN 1
NESCAF KOOLREZ
MAGGI SAUCES
20
27319103911
NESTL MUNCH
NESTL FUNBAR
NESTL ECLAIRS
21
27319103911
NESTLE KITKAT
They are crisp wafer fingers covered with choco layer. NESTL KIT KAT has unique finger format with a breaking' ritual attached to it.
NESTL KIT KAT is one of the most successful brands in the world and every year over 12 billion NESTL KIT KAT fingers are consumed around the globe.
NESTLE MUNCH
NESTL MUNCH is wafer layer covered with delicious choco layer. NESTL MUNCH is so crisp, light and irresistible that you just can't stop Munching.' NESTL MUNCH is the largest selling SKU in the category!
NESTL MILKYBAR is a delicious milky treat, which kids love. Re-launched in January 2006 with a Calcium Rich recipe, NESTL MILKYBAR is a favorite with parents to treat their kids with.
22
27319103911
NESTLE BAR-ONE
It is a luscious nougat and caramel with delicious choco layer. NESTL BAR-ONE constantly reminds you that it is Time for Action'.
NESTL Milk Chocolate is a milk chocolate with a delicious taste. Kids just love it!
23
27319103911
STRENGTHS
a) b) Domestic sales grew by 7% in value and 15% in volume terms, during the year. Continuous improvement of supply chain and a focus on flagship brands, contributed significantly towards the above profitability. The favorable impact of the commodity prices during parts of the year and the product mix, also contributed significantly towards improvement in profitability. c) The companys overall sales & profit progress during 2000 can be considered satisfactory & in line with the expectations. d) e) f) Superior value in every product. New flavour profiles were introduced in the business. The new NESCAFE pricing & bringing the popular SUNRISE brand under NESCAFE to benefit from its association continued to strengthen the category. g) Sustained improvements in customer service level to improve product availability across all geographies & channels. h) Reduction in wastage of material.
WEAKNESS:
a) b) Lack of advertisement. Give more importance to only few of their key products such as Nescafe and Cerelac hence people are not completely aware of all their products.
24
27319103911
OPPORTUNITIES:
The diversified knowledge & expertise have contributed significantly to the operations of the company. Some of the key areas that are benefitted are: a) Products that are manufactured are of international quality. Product quality that includes taste, appearance, convenience, & overall value for money, is a critical factor in consumer choice & in a competitive market like India could determine the survival of the products. The high quality of the products of the company is borne out by the position & image the products enjoy in the market & the company continuing to be a leading exporter of value added INSTANT COFFEE in the country b) Implementation of the project for bottled drinking water. c) Product innovation & renovations like MUNCH crisp wafer biscuit with choco layer, Nestle Dahi, Nestle Milk, Junior Foods, NESCAFE Frappe, KITKAT Milky & relaunch of MAGGI noodles. d) Enhancement of skill & competence of company personnel due to the training received.
THREATS:
a) Historically, the policy framework favored small & unorganized players while the MNC players were restricted from adding capacities. Nestle India is the third largest FMCG company in India after HLL & ITC &dominates the culinary & the hot beverages (coffee) segments in India. b) Nestle has a significant presence in the baby foods & has emerged as a strong no.2 in the dairy segment (after Amul) & chocolates (after Cadburys). c) Heinz is the main competitor in the baby foods market. The market for culinary products, semi-processed foods like noodles, ready mixes for Indian ethnic breakfast & sweets is largely an urban market.
25
27319103911
SWOT ANALYSIS
SWOT analysis is a conceptual framework for a systematic analysis that facilitates the matching of external threats and opportunities with the internal strengths and weaknesses of the organization. It is common to suggest that company identify their strengths and weaknesses as well as the opportunities and threats in the external environment. But what is overlooked is that combining these factors may require distinct strategic choices. Here, S stands for STRENGTHS W stands for WEAKNESSES O stands for OPPORTUNITIES T stands for THREATS
26
27319103911
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 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.
27
27319103911
Three names were considered: Jersey, Highland Milk and Dairy Maid. Dairy Maid became Dairy Milk, and Cadbury's Dairy Milk, with its unique flavor 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.
28
27319103911
Currently Cadbury India operates in three sectors viz. Chocolate Confectionery, Milk Food Drinks and in the Candy category. In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk, clairs and Celebrations. Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world! Their flagship brand Cadbury Dairy Milk is considered the "gold standard" for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian consumer. In the Milk Food drinks segment their main product is Bournvita - the leading Malted Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is the undisputed leader.
29
27319103911
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.
30
27319103911
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 employees 60,000 people in over 200 countries Worlds No 1 Confectionery company World's No 2 Gums company World's No 3 beverage company
31
27319103911
Cadbury Brands:
Chocolates Snacks Beverages Candy SNACKS: Bytes BEVERAGES Bournvita CANDY Halls CHOCOLATES Dairy Milk 5 Star Perk Celebrations Temptation Eclairs Gems
32
27319103911
DAIRY MILK
The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K., but the journey with chocolate lovers in India began in 1948. The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens & adults. Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a delightful combination of milk chocolate and white chocolate. Giving consumers an exciting reason to keep coming back into the fun filled world of Cadbury. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market. 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.
33
27319103911
More recently, to give consumers another reason to come into the Cadbury 5 Star fold, Cadbury 5 Star Crunchy was launched. The same delicious Cadbury 5 Star was now available with a dash of rice crispies.
PERK
Cadbury launched Perk in 1996. With its light chocolate and wafer construct, Cadbury Perk targeted the casual snacking space that was dominated primarily by chips & wafers. With the rise of more value-for-money brands in the wafer chocolate segment, Cadbury Perk unveiled two new offerings - Perk XL and XXL. In 2004, with an added dose of 'Real Cadbury Dairy Milk' and an 'improved wafer', Perk became even more irresistible.
CELEBRATIONS
Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai and dryfruits during festive seasons.
34
27319103911
Cadbury Celebrations is available in several assortments: An assortment of chocolates like 5 Star, Perk, Gems, Dairy Milk and Nutties and rich dry fruits enrobed in Cadbury dairy milk chocolate in 5 variants, Almond magic, raisin magic, cashew magic, nut butterscotch and caramels. The super premium Celebrations Rich Dry Fruit Collection which is a festive offering is an exotic range of chocolate covered dry fruits and nuts in various flavors and the premium dark chocolate range which is exotic dark chocolate in luscious flavors.
TEMPTATION
Ever it! If
see
people have,
hide then is
away its a
chocolate to of be
since a bar
they of
dont
want
to
share
you
Cadbury
Temptations! in five
Temptations
delicious
premium
chocolate
revealed
segment those of
of
chocoholics love a
those of too
exposed
to but
international possibly
chocolates the a
who
variety
chocolates high.
find is
international at this
chocolates segment of
Cadbury chocolate
Temptations lovers.
range
targeted
discerning
35
27319103911
The -Roast
range
is
available Mint
in
delicious Black
Honey
Apricot, quality
Crunch,
Jamaica.
international
chocolate
Temptations
became
36
27319103911
37
27319103911
CUSTOMER SATISFACTION
It is the overall process of building and maintaining profitable customer relationship by delivering superior customer value and satisfaction.
The key to building lasting customer relationships is to create superior customer value and satisfaction. Satisfied customers are more likely to be loyal customer, and loyal customers are more likely to give the company a larger share of their business.
CUSTOMER SATISFACTION:
It depends on the products perceived performance relative to a buyers expectations. If the products performance falls short of expectations, the customer is dissatisfied. If the performance matches expectations, the customer is satisfied. If the performance exceeds expectations, the customer is highly satisfied or delighted.
38
27319103911
CUSTOMER SATISFACTION OF NESTLE FOOD LTD.:The Customer Satisfaction of Nestle Food Ltd. are as follows:1) Nestl is committed in offering consumers high-quality food products that are safe, tasty and affordable. The Nestl Seal of Guarantee is a symbol of this commitment.
2) Nestle also believes in maintaining regular contact with the consumers. This applies both to how they present their products and to how they address their consumers' questions and concerns. When Henri Nestl prepared his first boxes of infant formula for sale, he put his address on the packages so people would know where to go if they had questions. Today, Nestles Consumer Relationship Panel with the words "Talk to Nestl" expresses the same commitment.
3) Nestle have a worldwide Nestl Consumer Services network devoted to caring for their consumers.
4) At Nestle people have expertise in a wide range of areas such as nutrition, food science, food safety and culinary expertise. They provide the prompt, efficient and high quality service that consumers expect from Nestl.
5) Nestle teach their people how to talk with consumers and above all, to listen. With the help of consumer suggestion Nestle exactly knows what people want. Nestl uses the insights gained from relationships with consumers to drive product development.
6) At Nestl, they care for their consumers because Nestle believes that their success depends on meeting consumers needs and expectations. Through listening and understanding, they can make products that people want to use all through their lives.
39
27319103911
7) Nestle has 138 years experience in producing quality products that satisfy the needs for good healthy food
8) Consumers are of the utmost importance to Nestle. Without consumers there would be no business.
9) Nestle focus on the consumer extents from those who buy and consume its product.
11) The overall trust of the consumer in Nestles brand and product comes from the quality image that has been continuously strengthened for over 130 years.
12) Nestle is a human company providing a response to individual human needs throughout the world with the concern for the well being of its customers.
13)It aims not only to increase sales and profit but also to raise the standard of living everywhere it is active and the quality of life for everyone
14) Nestle is more people brand and product oriented than system oriented .It seeks to earn consumers confidence and preference and to follow consumer trend, creating and responding to demand for its product 15) Nestle people are passionate about the products and the consumers are all around the world.
40
27319103911
Chapter - 3
RESEARCH METHODOLOGY
41
27319103911
RESEARCH METHODOLOGY
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 I have interacted with people of Delhi. 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 I would like to understand and analyze about the chocolates products available at Junagadh and collect the feedback from group of people and I wanted to know the developments made in direction of chocolates industry.
3. Objective 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.
42
27319103911
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. My approach to research is descriptive and quite specific. Out of these all research methods the research method, which was most suitable to my research, was descriptive research because it provides me all the opportunities to cover the all the aspect that I require to conduct the research and get an appropriate out come.
Descriptive Research: Descriptive research includes surveys and fact finding enquires of different kinds. The major purpose of descriptive research is description of the state of affairs as it exits at present. In social science and business research we often use the term Ex post facto research for descriptive research studies. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening.
43
27319103911
As learning is a human activity and is as natural, as breathing. Despite of the fact that learning is all pervasive in our lives, psychologists do not agree on how learning takes place. How individuals learn is a matter of interest to marketers. They want to teach consumers in their roles as their roles as consumers. They want consumers to learn about their products, product attributes, potential consumers benefit, how to use, maintain or even dispose of the product and new ways of behaving that will satisfy not only the consumers needs, but the marketers objectives.
The scope of my study restricts itself to the analysis of consumer preferences, perception and consumption of Cadbury and Nestle Chocolates. There are many other brands of chocolates available but my study is limited to two major players of chocolates leaving behind the others. The scope of my study is also restricts itself to junagadh region only. There are 2 sources of data i.e.
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.
44
27319103911
6. 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 me is questionnaire because it gives more flexibility in terms of data and it has been asked to the responder personally and have an idea of getting an important unknown data that can be collected through their behavior.
45
27319103911
7. 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 cant be eliminated though all necessary steps were taken to avoid the same.
46
27319103911
47
27319103911
DATA ANALYSIS
No. of respondent 83 17
Percentage (%) 83 17
Figure 1.1
PREFER CHOCOLATES?
17%
83%
YES
NO
Analysis & interpretation: Chocolate is a product which is like by the all age group of people. Accourding 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.
48
27319103911
Que2. Which brand of chocolate do you prefer? Table 1.2 Brand Name Cadbury Nestle
No. of Respondent 64 36
Percentage (%) 64 36
Figure 1.2
PREFERENCE OF BRAND
80 60 40 20 0
64 36
CADBURY
NESTLE
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.
49
27319103911
Sub- brands Kit kat Milky bar Bar one Milk chocolate Munch Table 1.3.1
Percentage (%) 12 1 2 1 20
NESTLE
25 20 20 15 10 5 1 0 KIT KAT MUNCH MILKY BAR BAR ONE MILK CHOCOLATE 2 12
Figure 1.3.1
50
27319103911
CADBURY Sub - brands Dairy Milk 5 Star Perk Celebrations Temptation Table 1.3.2 No. of respondents 40 11 9 1 3 Percentage (%) 40 11 9 1 3
CADBURY
40 40 30 20 10 0 DARYMILK 5 STAR PERK CELEBRATIONS TEMPTATION 11 9 1 3
Figure 1.3.2
Analysis & Interpretation: In this survey nestle is having five sub-brands like kitkat, Munch, Milkybar, Barone, milk chocolates and their consumption are like kitkat 12%, munch 20 ,milky bar 1% ,bare one 2% ,and milk chocolate 1%. 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 dairymilk 40%, 5 star11%, perk9%, celebration1% and Temptation 3%. According to the survey the highest selling product is Cadbury.
51
27319103911
Sub - brands Kit kat Munch Milky bar Bar one Milk chocolate Table 1.4.1
Rank 2 1 4 3 4
NESTLE
RANKING SUB BRAND
11% 3%
3% 33%
50%
KIT KAT
MUNCH
MILKY BAR
BAR ONE
MILK CHOCOLATE
Figure 1.4.1
52
27319103911
CADBURY
Sub - brands Dairy milk 5 star Perk Celebrations Temptation Table 1.4.2 No. of respondents 30 7 21 4 2 Percentage (%) 30 7 21 4 2 Rank 1 3 2 4 5
CADBURY
RANKING SUB BRANDS
30 30 25 20 15 10 5 0 DARYMILK 5 STAR PERK CELEBRATIONS TEMPTATION 7 4 2 21
Figure 1.4.2
53
27319103911
Que5. How much importance do you give to the following factors when you purchase a chocolate?
Percentage (%) 88 9 2 1
FLAVOUR/TASTE
9%
2% 1%
88%
VERY IMP.
IMPORTANT
NORMAL
LEAST IMP.
Figure 1.5.1
Price Parameters Very Important Important Normal Least Important Table 1.5.2 No. of respondents 1 3 96 0 Percentage 1 3 96 0
54
27319103911
PRICE
96 100 80 60 40 20 0 VERY IMP. IMPORTANT NORMAL LEAST IMP. 1 3 0
Figure 1.5.2 Packaging Parameters Very important Important Normal Least important Table 1.5.3
PACKAGING
No. of respondents 12 6 4 78
Percentage (%) 12 6 4 78
Figure 1.5.3
55
27319103911
Quality Parameters Very important Important Normal Least important Table 1.5.4 No. of respondents 78 12 6 4 Percentage 78 12 6 4
QUALITY
Figure 1.5.4
56
CONSUMER PREFERENCE TOWARDS NESTLE & CADBURY Que6. Which form of a chocolate do you like? Table 1.6 Forms Hard Crunchy Nutties Chew
27319103911
No. of respondents 47 29 18 6
Percentage (%) 47 29 18 6
Figure 1.6
FORM OF CHOCOLATE
50 40 30 20 10 0 HARD CRUNCHY NUTTIES CHEW 29 18 6 47
57
CONSUMER PREFERENCE TOWARDS NESTLE & CADBURY Que7. What pack do you purchase? Table 1.7 Pack Preference Small Big Family pack
27319103911
No. of respondents 73 17 10
Percentage (%) 73 17 10
Figure 1.7
PACK PREFERENCE
10
58
27319103911
Que8. Which promotional offers attract you most? Table 1.8 Promotional Offers Free gifts Price offer Any other
No. of respondents 12 84 4
Percentage (%) 12 84 4
Figure 1.8
PROMOTIONAL OFFERS
4%
12%
84%
FREE GIFTS
PRICE OFFER
ANY OTHER
Analysis & Interpretation: There are many factors affecting the promotional techniques. According t6o the report it can be concluded that maximum respondents get attracted by price offer followed by free gifts and any other.
59
27319103911
Que9.Which of these factors affects your purchase? Table 1.9 Factors Advertisement Suggestions Attractive display Doctors advice Brand Ambassadors Ingredients Figure 1.9
FACTORS AFFECTING PURCHASE
No. of respondents 69 1 2 0 21 7
Percentage (%) 69 1 2 0 21 7
80 60 40 20 0
69
21 1 2 0 7
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.
60
27319103911
Que10. Which media of advertisement influence your purchase? Table 1.10 Media Television Hoardings Newspapers Display
No. of respondent 67 7 3 23
Percentage (%) 67 7 3 23
Figure 1.10
INFLU ENCING MEDIA BROCHURES N EWSPAPERS D ISPLAY TELEVISION
HOARDINGS
TELEVISI ON HOARDINGS NE WSPAP ERS DI SPLAY BROCHURES
Analysis & Interpretation: In todays competitive market advertisement is the main tool for selling the product because every single person is watching or reading the advertisement. So it become 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 adds.
61
27319103911
Que11. If your preferred brand is not available for repeat purchases then what will you do? Table 1.11 IN Absence of Brand Postpone purchase Switch Over Search Brand No. of respondents 11 40 49 Percentage (%) 11 40 49
Figure 1.11
ABSENCE OF PREFERED BRANDS
11%
49% 40%
POSTPONE PURCHASE
SWITCH OVER
SEARCH BRAND
62
27319103911
63
27319103911
FINDINGS
From the one and half month experience of my research project with NESTLE AT DELHI . I have come to know lot things and it has enhanced my knowledge to great extent. I found many things which are well executed by distributors. Here are some of the key findings given by me are purely based on my research. It doesnt have any kind of bias from my side. They are given as under.
By doing the comparison of Nestle and Cadbury chocolates I have found that the preference of the chocolates more preferred by the consumer is Cadbury
From the analysis I have found that nestle 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 I found that consumer is very conscious about the quality of the product in that matter they are not ready to compromise. And I found both company product are very qualitative.
In some cases I 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 I 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 company are in small size of chocolates and there market is 73% because its not much costlier. And also easily available & affordable.
64
27319103911
65
27319103911
RECOMMENDATIONS
Chocolates products at Delhi city are available in comparison to previous years, but still there is requirement of development in Chocolate products. Nestle is regarded to be the best service distributors according to Retailer. 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 I 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.
As it is very clear that when it comes to advertisement, TV is again the most preferred way which influence the buying behavior of the consumers. So Nestle should try to make their advertisement more personal in consumer touch so that more and more people can associate themselves with the brand.
66
27319103911
CONCLUSION
Chocolate is liked by all the age groups whether they are kids, teenager or adults. If we take into account two giant chocolate players in INDIA then it is very clear that CADBURY is the winner between the two in terms of taste and variety. Although the quality of both the products are acceptable by the consumer but Cadbury is the first preference of the consumer. When it comes to the brand which people wants more then its clearly CADBURY. If it is for choosing a sub brand of CADBURY then Dairy Milk is the one which is the most desired product in the market. Consumption of chocolates are more in case of CADBURY rather than NESTLE.The most selling product is Munch the sub-brand of Nestle. Maximum consumers like hard chocolates. We can easily see that the consumption of small pack is having boom in the market Majority of consumers get influenced by advertisement rather than other promotional tools. 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 adds. 11% of the consumer are postponing the purchase of the product, 40 % of the consumer are switch over to any other product, & 49 % will search the product at any other place they dont compromise for the same.
67
27319103911
References
68
27319103911
Web sites:
www.nestle.com www.nestle.inchocoinfo.com www.nestle bar-one.com
www.business-standard.com www.babymilkaction.org
Books:
1. Anderson, N. (1997). Marketing Management. 2. Taylor, M. S. & Schmidt, D. W. (1983). A process-oriented investigation of marketing source effectiveness. 36, 343-354. 3. Swaroff, P. G., Barclay, L. A., & Bass, A. R. (1985). Recruiting sources: Another look. Journal of Applied Psychology, 70, 720-728. 4. C.R. Kothari (2009).Research Methodology. 5. Philip Kotler (2005), Marketing Management.
69
27319103911
ANNEXURE
70
27319103911
QUESTIONNAIRE
PERSONAL DETAILS Name: Address: Age: Between 0-10 Between 20-30 Gender: Phone / Mob. : Profession: Que1. Do you eat chocolate? Yes Between10-20 Above 30
No
Que3. Which sub-brand you have purchased? Cadbury Dairy Milk 5Star Perk Celebrations Temptation Nestle Kit Kat Munch Milky Bar Bar-One Milk Chocolate
Que4. Rank the sub-brands of chocolates according to your preference? (1 for most preferred) Cadbury Nestle Dairy Milk 5Star Perk Celebrations Temptation Kit Kat Munch Milky Bar Bar-One Milk Chocolate
Que5. How much importance do you give to the following factors when you purchase a chocolate? (Tick in the desired column)
71
CONSUMER PREFERENCE TOWARDS NESTLE & CADBURY Factors Flavor/taste Price Quality Packaging Que6. Which form of a chocolate do you like? Hard Crunchy Nutties Chew Very Important Important Normal Least Important
27319103911
Que8. Which promotional offers attract you most? Free gifts Price Offer Any other
Que9.Which of these factors affects your purchase? Advertisement Suggestion from friends and relatives Attractive Display Doctors Advice Brand Ambassadors Ingredients
Que10. Which media of advertisement influence your purchase? Television Hoarding Newspapers Display Brochures
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 the other shop to search for your preferred brand
72