The Project Report On

“COMPARATIVE ANALYSIS OF CUSTOMER BUYING

BEHAVIOUR TOWARDS CADBURY AND NESTLE”

VS

Submitted to

PUNJAB TECHNICAL UNIVERSITY

JALANDHAR

In the partial fulfillment of the requirement for the

Award of degree of
Masters of Business Administration (MBA)

PROJECT GUIDE: SUBMITTED BY:

Mr. Pranjal Pachpore Lovleen Taluja
Faculty. (In Management) 94512236937
Session (2009-11)

GIAN JYOTI INSTITUTE OF MANAGEMENT & TECHNOLOGY

MOHALI

1
 DECLARATION

I hereby declare that the project report entitled “COMPARATIVE ANALYSIS OF

CUSTOME BUYING BEHAVIOR TOWARDS CADBURY AND NESTLE” submitted
for the Degree of Master of Business Administration, is my original work and the project
report has not formed the basis for the award of any diploma, degree, associate ship,
fellowship or similar other titles. It has not been submitted to any other university or
institution for the award of any degree or diploma.

Place: LOVLEEN TALUJA

Date MBA IV SEM.

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 ACKNOWLEDGEMENT

Survey is an excellent tool for learning and exploration. No classroom routine can
substitute which is possible while working in real situations. Application of theoretical
knowledge to practical situations is the bonanzas of this survey.

Without a proper combination of inspection and perspiration, it is not easy to achieve

anything. There is always a sense of gratitude, which we express to others for the help
and the needed services they render during the different phases of our lives. I too would
like to do it as I really wish to express my gratitude toward all those who have been
helpful to me directly or indirectly during the development of this project.

I would like to thank my teachers Dr. Babita Dosajh (HOD) sand Mr. Pranjal
Pachpore (Faculty) who has been always there to help and guide me in all manners.
Their perceptive criticism kept me working to make this project more useful. I am
thankful to them for their encouraging and valuable support. Working with them has been
an extremely knowledgeable and enriching experience for me. I am very thankful to them
for all the value addition and enhancement done to me.

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

support helped me in all the way. Above all I shall thank my friends who constantly
encouraged me so as to enable me to do this work successfully.

LOVLEEN TALUJA
MBA IV SEM.

TABLE OF CONTENTS
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CHAPTER CHAPTER NAME PAGE NUMBER
NUMBER

I INTRODUCTION 5

II COMPANY PROFILE 8

III REVIEW OF LITRATURE 33

IV RESEARCH METHODOLOGY 35

V OBJECTIVES OF THE STUDY 39

VI ANALYSIS & FINDINGS 41

VII LIMITATIONS OF THE STUDY 61

VIII CONCLUSION 63

IX SUGGESTIONS & 65
RECOMMENDATIONS

X BIBLIOGRAPHY 67

XI ANNEXURE 69

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I. INTRODUCTION

INTRODUCTION

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In this research I have surveyed in Chandigarh 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 different ages
at “CHANDIGARH”. After this research I came to know how people perceive 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 an attempt has been made
also to identify the consumption habits of chocolate in terms of the pack size etc ie
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 research process.

CUSTOMER BUYING BEHAVIOUR

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All marketing starts with the consumer. So consumer is a very important person to a
marketer. Consumer decides what to purchase, for whom to purchase, why to purchase,
from where to purchase, and how much to purchase. In order to become a successful
marketer, he must know the liking or disliking of the customers. He must also know the
time and the quantity of goods and services, a consumer may purchase, so that he may
store the goods or provide the services according to the likings of the consumers. Gone
are the days when the concept of market was let the buyer’s beware or when the market
was mainly the seller’s market. Now the whole concept of consumer’s sovereignty
prevails. The manufacturers produce and the sellers sell whatever the consumer likes. In
this sense, “Consumer is the supreme in the market”.

As consumers, we play a very vital role in the health of the economy local, national or
international. The decision we make concerning our consumption behavior affect the
demand for the basic raw materials, for the transportation, for the banking, for the
production; they effect the employment of workers and deployment of resources and
success of some industries and failures of others. Thus marketer must understand this.

Preference (or "taste") is a concept, used in the social sciences, particularly economics. It
assumes a real or imagined "choice" between alternatives and the possibility of rank
ordering of these alternatives, based on happiness, satisfaction, gratification, enjoyment,
utility they provide. More generally, it can be seen as a source of motivation. In cognitive
sciences, individual preferences enable choice of objectives/goals.

The study of the consumer preference not only focuses on how and why consumers make
buying decision, but also focuses on how and why consumers make choice of the goods
they buy and their evaluation of these goods after use. So for success of any company or
product promotion it is very necessary to depart its concentration towards consumer
preference.

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II. COMPANY PROFILE

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

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 History of chocolate:

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

The Aztec empire

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

Don Cortes
The Spanish invaded Mexico in the 16th century, by this time the Aztecs had created a
powerful empire, and the Spanish armies conquered Mexico. Don Cortes was made
captain general and governor of Mexico.
When he returned to Spain in1528 he loaded his galleons with cocoa beans and
equipment for making the chocolate drink. Soon “chocolate” became a fashionable drink
enjoyed by the rich in Spain.

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 xocolatl, the Spanish conquistadors found this

11
almost impossible to pronounce and so corrupted it to the easier “ chocolat” the English
further changed this to chocolate.
The Aztec’s regarded chocolate as an aphrodisiac and their emperor, Montezuma
reputedly drank it fifty times a day from a golden goblet and is quoted as saying of
xocolatl: “ the divine drink, which builds up resistance and fights fatigue. A cup of this
precious drink permits a man to walk for a whole day without food”

Chocolate in Europe
Xocolatl! or chocolat or chocolate as it became known, was brought to Europe by
Cortez, by this time the conquistadors had learned to make the drink more palatable to
European tastes by mixing the ground roasted beans with sugar and vanilla ( a practice
still continued today), thus offsetting the spicy bitterness of the brew the Aztec’s drank.
The first chocolate factories opened in Spain, where the dried fermented beans brought
back from the new world by the Spanish treasure fleets were roasted and ground, and by
the early 17th century chocolate powder – from which the European version of the drink
was made- was being exported to other parts of Europe. The Spanish kept the source of
the drink- the beans- a secret for many years, so successfully in fact, that when English
buccaneers boarded what they thought was a Spanish “ treasurer galleon” in 1579, only to
find it loaded with what appeared to be “ dried sheep’s droppings, they burned the whole
ship in frustration. If only they had known, chocolate was so expensive at that time, that
it was worth it’s weight in silver ( if not gold), chocolate was treasure indeed !
Within a few years, the cocoa beverage made from the powder produced in Spain had
become popular throughout Europe, in the Spanish Netherlands, Italy, France, Germany
and – in about 1520 – it arrived in England.
The first chocolate house in England opened in London in 1657 followed rapidly by
many others. Like the already well established coffee houses, they were used as clubs
where the wealthy and business community met to smoke a clay pipe of tobacco,
conduct business and socialize over a cup of chocolate.

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Back to the America’s
Event’s went full circle when English colonists carried chocolate (and coffee) with them
to England’s colonies in north America. Destined to become the united states of America
and Canada, they are now the worlds largest consumers – by far – of both chocolate and
coffee, consuming over half of the words total production of chocolate alone.

The Quakers
The Quakers were, and still are, a pacifist religious sect, an offshoot of the puritans of
English civil war and pilgrim fathers fame and a history of chocolate would not be
complete without mentioning their part in it. Some of the most famous names in
chocolate were Quakers, who for centuries held a virtual monopoly of chocolate making
in the English speaking world – fry, Cadbury and row tree are probably the best known.
Its probably before the time of the English civil war between parliament and king Charles
1st that the Quaker’s who evolved from the puritans, first began their historic association
with chocolate. Because of their pacifist religion, they were prohibited from many normal
business activities, so as an industrious people with a strong belief in the work ethic (like
the puritans), they involved themselves in food related businesses and did very well.
Baking was a common occupation for them because bread was regarded as the biblical
“staff of life”, and bakers in England were the first to add chocolate to 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.

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 CHOCOLATE PRODUCTION

The cocoa-bean -- the heart of the sweetest delicacy in the world -- is

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

TheVarieties
There are two quite different basic classifications of cocoa, under which
practically all varieties can be categorised: Criollo and Forastero cocoas.
The pure variety of the Criollo tree is found mainly in its native Equador
and Venezuela. The seeds are of finer quality than those of the Forastero variety.

They have a particularly fine, mild aroma and are, therefore, used only in the production
of high-quality chocolate and for blending. However, Criollo cocoa accounts for only
10% of the world crop. The remaining 90% is harvested from trees of the Forastero
family, with its many hybrids and varieties. The main growing area is West Africa. The
cocoa tree can flourish only in the hottest regions of the world.

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

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

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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.

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

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

Grinding
The crushed cocoa beans, which are still fairly coarse are now pre-ground by special
milling equipment and then fed on to rollers where they are ground into a fine paste. The
heat generated by the resulting pressure and friction causes the cocoa butter

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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:

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Kneading
In the case of milk chocolate for example, the cocoa paste, cocoa butter, powdered or
condensed milk, sugar and flavouring - maybe vanilla - go into the mixer, where they are
pulverized and kneaded.

Rolling
Depending on the design of the rolling mills, three or five vertically
mounted steel rollers rotate in opposite directions. Under heavy pressure
they pulverise the tiny particles of cocoa and sugar down to a size of
approx. 30 microns. (One micron is a thousandth part of a millimetre.)

Conching
But still the chocolate paste is not smooth enough to satisfy our palates.
But within two or three days all that will have been put right. For during
this period the chocolate paste will be refined to such an extent in the
conches that it will flatter even the most discriminating palate.

Conches (from the Spanish word "concha", meaning a shell) is the name given to the
troughs in which 100 to 1000 kilograms of chocolate paste at a time can be heated up to
80 °C and, while being constantly stirred, is given a velvet smoothness by the addition of
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.

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 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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 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:

NESTLÉ EVERYDAY Dairy Whitener

NESTLÉ EVERYDAY Slim

NESTLÉ EVERYDAY Ghee

NESTLÉ MILKMAID

NESTLÉ Fresh 'n' Natural Dahi

NESTLÉ Fresh 'n' Natural Slim Dahi

NESTLÉ Jeera Raita

NESTLÉ MILKMAID Fruit yoghurt

NESTLÉ Milk

NESTLÉ Slim Milk

BEVERAGES:

NESCAFÉ CLASSIC
NESCAFÉ SUNRISE
NESTLÉ MILO
NESCAFÉ 3 in 1
NESCAFÉ Koolerz

PREPARED DISHES AND COOKING AIDS

MAGGI 2-MINUTE Noodles
MAGGI Vegetable Atta Noodles
MAGGI Dal Atta Noodles
MAGGI Rice Noodles Mania
MAGGI Sauces

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 MAGGI Pizza Mazza
MAGGI Healthy Soups
MAGGI Healthy Soup- Sanjeevni
MAGGI MAGIC Cubes

CHOCOLATES & CONFECTIONARY

NESTLÉ KIT KAT
NESTLÉ KIT KAT LITE
NESTLÉ MUNCH
NESTLÉ MUNCH POP CHOC
NESTLÉ MILKYBAR
NESTLÉ MILKYBAR CHOO
NESTLÉ BAR-ONE
NESTLÉ FUNBAR
NESTLÉ Milk Chocolate
POLO
POLO Powermint
NESTLÉ Eclairs

NESTLEKITKAT

are crisp wafer fingers covered with choco layer. NESTLÉ KIT KAT has a
unique finger format with a ‘breaking' ritual attached to it.

NESTLÉ KIT KAT is one of the most successful brands in the world and every
year over 12 billion NESTLÉ KIT KAT fingers are consumed around the globe.

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NESTLE MUNCH

NESTLÉ MUNCH is wafer layer covered with delicious choco layer. NESTLÉ MUNCH
is so crisp, light and irresistible that you just ‘can't stop Munching.' NESTLÉ MUNCH is
the largest selling SKU in the category!

NESTLE MILKY BAR:

NESTLÉ MILKYBAR is a delicious milky treat, which kids love. Relaunched in January
2006 with a Calcium Rich recipe, NESTLÉ MILKYBAR is a favorite with parents to
treat their kids with.

NESTLE BAR-ONE

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

NESTLE Milk Chocolate:

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

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 CADBURY

How Cadbury Chocolate is made

John Cadbury

Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder
John paste to the dark chocolate recipe of cocoa mass, cocoa butter and sugar. By today's
standards this chocolate was not particularly good: it was coarse and dry and not sweet or
milky enough for public tastes.

There was a great deal of competition from continental manufacturers, not only the
French,but also the Swiss, renowned for their milk chocolate.
Led by George Cadbury Junior, the Bournville experts set out to meet the challenge. A
considerable amount of time and money was spent on research and on new plant designed
to produce the chocolate in larger quantities.

A recipe was formulated incorporating fresh milk, and production processes were
developed to produce a milk chocolate 'not merely as good as, but better than' the
imported milk chocolate'.

Four years of hard work were invested in the project and in 1905 what
was to be Cadbury's top selling brand was launched.

Three names were considered: Jersey, Highland Milk and Dairy Maid.
Dairy Maid became Dairy Milk, and Cadbury's Dairy Milk, with its unique flavour and
smooth creamy texture, was ready to challenge the Swiss domination of the milk
chocolate market.

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By 1913 Dairy Milk had become the company's best selling line and in the mid twenties
Cadbury's Dairy Milk gained its status as the brand leader, a position it has held ever
since.

COMPANY OVERVIEW OF CADBURY INDIA

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

Currently Cadbury India operates in three sectors viz. Chocolate Confectionery, Milk
Food Drinks and in the Candy category.

In the Chocolate Confectionery business, Cadbury has maintained its undisputed

leadership over the years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk,
Éclairs and Celebrations. Cadbury enjoys a value market share of over 70% - the highest
Cadbury brand share in the world! Their flagship brand Cadbury Dairy Milk is
considered the "gold standard" for chocolates in India. The pure taste of CDM defines the
chocolate taste for the Indian consumer.

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In the Milk Food drinks segment their main product is Bournvita - the leading Malted
Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is the
undisputed leader.

The Cadbury India Brand Strategy has received consistent support through simple but
imaginative extensions to product categories and distribution. A good example of this is
the development of Bytes. Crispy wafers filled with coca cream in the form of a bagged
snack, Bytes is positioned as "The new concept of sweet snacking". It delivers the taste of
chocolate in the form of a light snack, and thus heralds the entry of Cadbury India into
the growing bagged Snack Market, which has been dominated until now by Salted
Bagged Snack Brands. Bytes was first launched in South India in 2003.

Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India.
For over two decades, it has worked with the Kerala Agriculture University to undertake
cocoa research and released clones, hybrids that improve the cocoa yield.

Today, Cadbury is poised in its leap towards quantum growth and new categories of
business, namely gums, mints, snacking and gifting. It is a part of the Cadbury
Schweppes Group, world's No.1 Confectionery Company.

CADBURY WORLD WIDE

Cadbury is the world's largest confectionery company and have a

strong regional presence in beverages in the Americas and Australia.

With origins stretching back over 200 years, today their products -
which include brands such as Cadbury, Schweppes, Halls, Trident, Dr Pepper, Snapple,
Trebor, Dentyne, Bubblicious and Bassett - are enjoyed in almost every country around
the world. We employ around 60,00 people.

27
 Their heritage starts back in 1783 when Jacob Schweppe perfected his
process for manufacturing carbonated mineral water in Geneva,
Switzerland. And in 1824 John Cadbury opened in Birmingham
selling cocoa and chocolate.

These two great household names merged in 1969 to form Cadbury Schweppes
plc. Since then they have expanded their business throughout the world by a
programme of organic and acquisition led growth.

Concentrating on their core brands in beverages and confectionery since the

1980s, they have strengthened their portfolio through almost fifty acquisitions,
including brand icons such as Mott's, Canada Dry, Halls, Trident, Dentyne, Bubblicious,
Trebor, Bassett, Dr Pepper, 7 Up and Snapple.

- It employ 60,000 people in over 200 countries

- Worlds No 1 Confectionery company
- World's No 2 Gums company
- World's No 3 beverage company

Cadbury Brands:

 Chocolates
 Snacks
 Beverages
 Candy

SNACKS:

Bytes

BEVERAGES

Bournvita

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CANDY

Halls

CHOCOLATES

Dairy Milk

5 Star

Perk

Celebrations

Temptation

Eclairs

Gems

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DAIRY MILK

The story of
Cadbury Dairy
Milk started way back in 1905 at Bournville, U.K., but the journey with chocolate lovers
in India began in 1948.

The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of
Cadbury Dairy Milk with a variety of ingredients and are very popular amongst teens &
adults.

Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie,
chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a
delightful combination of milk chocolate and white chocolate. Giving consumers an
exciting reason to keep coming back into the fun filled world of Cadbury.

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

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5 STAR

the second largest after Cadbury Dairy Milk with a market share of 14%, Cadbury 5 Star
moves from strength to strength every year by increasing its user base.

Launched in 1969 as a bar of chocolate that was hard outside with soft caramel nougat
inside, Cadbury 5 Star has re-invented itself over the years to keep satisfying the
consumers taste for a high quality & different chocolate eating experience.

One of the key properties that Cadbury 5 Star was associated with was its classic Gold
colour. And through the passage of time, this was one property that both, the brand and
the consumer stuck to as a valuable association.

More recently, to give consumers another reason to come into the Cadbury 5 Star fold,
Cadbury 5 Star Crunchy was launched. The same delicious Cadbury 5 Star was now
available with a dash of rice crispies.

PERK

Cadbury launched Perk in 1996. With its light chocolate and wafer construct, Cadbury
Perk targeted the casual snacking space that was dominated primarily by chips & wafers.

31
 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

32
Cadbury Temptations is a range of delicious premium chocolate in five
flavors variants - Roast Almond Coffee, Honey Apricot, Mint Crunch, Black Forest and
Old Jamaica.

III. REVIEW OF LITRATURE

33
REVIEW OF LITERATURE

A literature review discusses published information in a particular subject area, and

sometimes information in a particular subject area within a certain time period. A
literature review can be just a simple summary of the sources, but it usually has an
organizational pattern and combines both summary and synthesis. A summary is a recap
or the important information of the source, but a synthesis is a re-organization, or a
reshuffling, of that information. It might give a new interpretation of old material or
combine new with old interpretations. Or it might trace the intellectual progression of the
field, including major debates. And depending on the situation, the literature review may
evaluate the sources and advise the reader on the most pertinent or relevant. Purpose of
review of Literature is to provide a backdrop of the present study. It is the context to
which our present study can be referred to determine its relevance

34
IV. RESEARCH
METHODOLOGY

35
 RESEARCH METHODOLOGY

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

Survey design:
The study is a cross sectional study because the data were collected at a single point of
time. For the purpose of present study a related sample of population was selected on the
basis of convenience.

Sample Size and Design:

A sample of 100 people was taken on the basis of convenience. The actual consumers
were contacted on the basis of random sampling.

Research Period:
Research work is only carried for 2 or 3 weeks.

Research Instrument:
This work is carried out through self-administered questionnaires. The questions included
were open ended, dichotomous and offered multiple choices

36
Data Collection:
The data, which is collected for the purpose of study, is divided into 2 bases:
 Primary Source: The primary data comprises information survey of
“Comparative study of consumer behavior towards Nestle and Cadbury
chocolates”. The data has been collected directly from respondent with the help
of structured questionnaires.
 Secondary Source: The secondary data was collected from internet, References
from Library.

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

37
 SCOPE OF THE STUDY

As learning is a human activity and is as natural, as breathing. Despite of the fact that
learning is all pervasive in our lives, psychologists do not agree on how learning takes
place. How individuals learn is a matter of interest to marketers. They want to teach
consumers in their roles as their roles as consumers. They want consumers to learn about
their products, product attributes, potential consumers benefit, how to use, maintain or
even dispose of the product and new ways of behaving that will satisfy not only the
consumer’s needs, but the marketer’s objectives.

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

38
V. OBJECTIVES OF THE
STUDY

39
 OBJECTIVES OF THE STUDY

This project is based on the comparative study consumer behavior towards Nestle and
Cadbury chocolates. Objectives of the study are:

 The other objective is to know about the customer satisfaction level

associated with the product and the customer preference level.
 To increase customer satisfaction and recapture the market share by fulfilling
the customer needs.
 To study the factors affecting the consumption pattern.

40
VI. ANALYSIS & FINDINGS

41
 ANALYSIS OF THE STUDY

LIKING FOR THE CHOCOLATES

Table:1

Liking for the Chocolate Yes No

Number of Respondents 95 5

Fig:1

From the above analysis, it can be concluded that out of 100 people 95% people likes to
eat chocolate while only 5% people do not like to eat chocolate.

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 PREFERENCE OF CHOCOLATES BY DIFFERENT AGE GROUP

Table:2
AGE GROUPS 0-10 10-20 20-30 ABOVE 30
NUMBER OF 14 42 33 11
RESPONDENTS

Fig:2
According to the above analysis, it can be concluded that people whose age is between
10-20 years like to eat chocolates more than people who are in the age group of above 30
years.

43
 PREFERENCE OF BRAND AS PER AGE GROUPS

Table:3
AGE GROUPS
BRANDS 0-10 10-20 20-30 ABOVE 30
CADBURY 7 35 24 5
NESTLE 5 6 8 5
NO CONSUMPTION 2 1 1 1

Fig:3
It can be inferred from the above table that people of different age groups prefer to eat
Cadbury brand of chocolate rather than Nestle brand.

44
 PURCHASE DECISSION OF SUB BRANDS OF CADBURY

Table:5
CADBURY CHOCOLATES
SUB- BRANDS NUMBER OF RESPONDANTS
DAIRY MILK 69
5 STAR 64
PERK 61
CELEBRATIONS 49
TEMPTATIONS 41

Fig:5
As per the survey, it was found that out of 73% of people who prefer Cadbury over
Nestle , likes to eat diary milk and Five star as their sub brands.

PURCHASE OF NESTLE CHOCOLATES

45
Table:6
NESTLE CHOCOLATES
SUB- BRANDS NUMBER OF RESPONDANTS
KIT KAT 17
MUNCH 19
MILKY BAR 18
BAR- ONE 16
MILK CHOCOLATE 11

Fig:6
As per the survey it was found that out of 22 respondents who eat Nestle chocolates
mostly buy Munch , followed by Milky Bar and Kit Kat., While most of the peopleare
not aware about the Milk chocolates.

OVERALL PURCHASE OF CHOCOLATES

Table:7
OVERALL PURCHASE OF SUB- BRANDS OF CHOCOLATES

46
SUB-BRANDS PERCENTAGE OF PURCHASE
DAIRY MILK 13
5 STAR 12
PERK 11
CELEBRATIONS 9
TEMPTATIONS 7
KIT KAT 10
MUNCH 11
MILKY BAR 11
BAR ONE 9
MILK CHOCOLATE 7

Fig:7
From above data it is concluded that overall Dairy Milk is purchased by people followed
by 5 Star while Temptation and Milk Chocolate is least purchased by people.

FORM PREFERENCE

Table:8
FORM OF CHOCOLATE NUMBER OF
RESONDENTS
HARD 33
NUTTIES 25
CRUNCHY 29

47
 CHEW 20

Fig:8
It is concluded from the above data that People normally prefer hard form of chocolates
rather than Chew

PACK OF CHOCOLATES PREFERED

Table:9
PACK SIZE NUMBER OF RESPONDENTS
SMALL 28
BIG 48
FAMILY PACK 19

48
 Fig:9

The above data concludes that out of sample of 95 people who eat chocolates, likes to
buy big pack rather than a small pack as it is a cost savvy.

PROMOTIONAL OFFERS

Table:10
PROMOTIONAL OFFERS NUMBER OF RESPONDENTS
FREE GIFTS 52
PRICE OFFER 23
ANY OTHER 20

49
 Fig: 10
From the above it is concluded that out of sample of 95 people who eat chocolate 52 are
attracted by free gifts, 23 by price offers while 20 were attracted by some other reasons.

FACTORS AFFECTING PURCHASE

Table:11
FACTORS NUMBER OF
RESPONDENTS
ADVERTISEMENT 65
SUGGESTION FROM FRIENDS 16
ATTRACTIVE DISPLAY 11
BRAND AMBASSADORS 9

50
 Fig: 11
As per survey it is concluded that Advertisement is the best measure to attract customers
to purchase more and more . Its impact is much more than any other source .

MEDIA OF ADVERTISEMENT

Table:12
MEDIA OF ADVERTISEMENT NUMBER OF RESPONDENTS
TELEVISION 74
NEWSPAPERS 5
BROCHURES 1
HOARDING 3
DISPLAY 12

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 Fig:12
From the above data it is concluded that television emerges as the best media for
advertisement of chocolates that creats an urge in consumers to buy chocolates .

FREQUENCY OF CONSUMPTION

Table:13
FREQUENCY OF CONSUMPTION NUMBER OF RESPONDENTS
ONCE IN A FORTNIGHT 16
DAILY 17
WEEKLY 39
MONTHLY 18
QUARTERLY 5

52
 Fig:13
According to the data it is concluded that mostly people purchase chocolates on a weekly
basis . Only 15 out of 95 purchase chocolates quarterly.

REASONABLE PRICE

Table:14
PRICE OF CHOCOLATE NUMBER OF RESPONDENTS
BELOW 5 6
5-10 23
10-20 51
20-30 4
ABOVE 30 11

53
 Fig: 14
It is concluded that the consumer thinks 10-20 Rs is the reasonable price of a chocolate.
So it must be worthwhile to know this as it may effect the sale of chocolates.

CONSUMER’S BRAND LOYALTY

Table:15
BRAND LOYALTY ACTIONS NUMBER OF RESPONDENTS
POSTPONE YOUR PURCHASE 26
SWITCH OVER TO OTHER BRANDS 24
GO TO OTHER SHOP FOR SEARCH 45
OF PREFERED BRAND

54
 Fig:15
It is concluded that most of the people are brand loyal and in the absence of availability
of their preferred brand , most of the people like to search for it or they are ready to
postpone their purchase.

REACTION OF CONSUMERS IF NEW BRAND IS INTRODUCED

Table:16
SHIFT TO NEW BRAND OF THE NUMBER OF RESPONDENTS
PREFERED PRODUCT
NO, NOT AT ALL 35
MAY CONSIDER 27
NO, SHALL NOT 4
CAN’T SAY 29

55
 Fig:16
It is concluded that mostly people are addicted to the same flavor or taste and they are not
receptive about the new brand introduced.

REASONS FOR NOT SWITCHING OVER TO OTHER BRANDS

All the consumers why they continue to buy the old brand gave various important
reasons. The most important reasons given by the consumers were:
 Taste/Flavor
 Brand
 Image
 Quality
 Packaging

56
 Chi-Square Test

Frequencies

Do you eat chocolate?

Observed N Expected N Residual
yes 95 50.0 45.0
no 5 50.0 -45.0
Total 100

57
Which promotional offers attract you most?
Observed N Expected N Residual
Free gifts 52 31.3 20.7
Price Offer 23 31.3 -8.3
Any other 20 31.3 -12.3
Total 95

Which of these factors affect your purchase?

Observed N Expected N Residual
Advertisement 64 25.0 39.0
Suggestion from friend 16 25.0 -9.0
Attractive Display 12 25.0 -13.0
Brand Ambassadors 8 25.0 -17.0
Total 100

Which media of advertisement influence your

purchase?
Observed N Expected N Residual
Television 74 19.0 55.0
Newspapers 5 19.0 -14.0
Brochures 1 19.0 -18.0
Hoarding 3 19.0 -16.0
Display 12 19.0 -7.0
Total 95

If your preferred brand is not available for repeat

purchase then what will you do?
Observed Expected Residual
N N
Postpone your purchase 26 31.7 -5.7
Switch over to other brand 24 31.7 -7.7
Go to the other shop to search 45 31.7 13.3
for your preferred brand
Total 95

Test Statistics
Do you eat Which Which of Which media of If your preferred
chocolate? promotional these factors advertisement brand is not
offers attract affect your influence your available for
you most? purchase? purchase? repeat purchase

58
 then what will
you do?
Chi- 81.000a 20.702b 82.400c 202.632d 8.484e
Square
df 1 2 3 4 2
Asymp. .000 .000 .000 .000 .014
Sig.
a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell
frequency is 50.0.
b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell
frequency is 31.3.
c. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell
frequency is 25.0.
d. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell
frequency is 19.0.
e. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell
frequency is 31.7.

FINDINGS

 CONSUMER RESEARCH:
Consumer research deals with consumer and
their problems and solution to the problems. In this I came to know about the
consumers need and expectation levels regarding products and ascertainable
levels of consumer satisfaction.

 PRODUCT RESEARCH:

59
 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.

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 VII. LIMITATIONS OF THE
STUDY

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

 Due to limitation of time only few people were selected for the study. So the
sample of consumers was not enough to generalize the findings of the study.
 The main source of data for the study was primary data with the help of self-
administered questionnaires. Hence, the chances of unbiased information are less.
 People were hesitant to disclose the true facts.

61
 The chance of biased response can’t be eliminated though all necessary steps were
taken to avoid the same.

62
 VII. 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
chocolate with good flavor, quality and crunchiness so they are going towards Kit Kat
and Munch of Nestle due to its taste and crunchiness.

63
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.

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 IX. SUGGESTIONS
&
RECOMMENDATIONS

SUGGESTIONS AND RECOMMENDATIONS

 Company should concentrate more on television for advertisement, as mostly

people get attracted through television only.
 For promotional offers, company should go for free gifts rather than going for
other ways.
 Nestle company should concentrate on its packing as people are least satisfied
with it while Cadbury should concentrate on the shape of a chocolate.

65
 People are unsatisfied with the price and quantity of chocolate so companies
should concentrate in this regard also.

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 XI. BIBLIOGRAPHY

BIBLIOGRAHY

 http://www.cadburyindia.com

 http://www.nestle.com

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

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

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

67
 http://www.chocolatereview.co.uk

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

 CR Kothari Research Methodology from library

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 XI. ANNEXURE

QUESTIONNAIRE

“COMPARATIVE ANALYSIS OF CUSTOMER BUYING BEHAVIOUR

TOWARDS CADBURY AND NESTLE”

Que1. Do you eat chocolate?

Yes No

Que2. Which brand of chocolate do you prefer?

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 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

Que7. Which form of a chocolate do you like?

Hard Nutties

Crunchy Chew

Que8. What pack do you purchase?

Small Big Family Pack

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

Que10.Which of these factors affect your purchase?

 Advertisement

 Suggestion from friend

 Attractive Display

 Brand Ambassadors

Que11. Which media of advertisement influence your purchase?

Television Newspapers Brochures

Hoarding Display

Que12. How frequently do you purchase chocolates?

Once in a fortnight Daily
Weekly Monthly
Quarterly

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

Below5 5-10 10-20

20.30 Above 30

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

 Switch over to other brand

 Go to the other shop to search for your preferred brand

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

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 No, not at all I may consider

No, I shall not can’t say

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

PERSONAL DETAILS
Name:
Address:
Age:
Between 0-10 Between10-20
Between 20-30 Above 30

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

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