CHAPTER NO.

1 INTRODUCTION

In this research I have survey the product performance and buying

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

1.1 Consumer Preference

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

person to marketers. 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.

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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,utilitythey 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

1.2 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 chill 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

2
making the chocolate drink. Soon “chocolate” became a fashionable drink
enjoyed by the rich in Spain

Chocolate across Europe. An Italian traveller , Francesco carletti, was

the first to break the Spanish monopoly. He had visited Central America and
seen how the Indians prepared the cocoa beans and how they made the drink,
and by 1606 chocolate was well established in Italy.

Drinking chocolate

The secret of chocolate was taken to France in 1615, when Anne, daughter of
Phillip 2 of Spain married king Louis 13 of France the French court
enthusiastically adopted this new exotic drink, which was considered to have
medicinal benefits as well as being a nourishing food. Gradually the custom of
drinking chocolate spread across Europe, reaching England in the 1650’s

First chocolate for eating

Up until this point all chocolate recipes were based on plain chocolate. It was
an English doctor, Sir Hans’s Sloane, who- after traveling in south America-
focused on cocoa and food values, bringing a milk chocolate recipe back to
England. The original Cadbury milk chocolate was prepared to his recipe

History

The earliest record of chocolate was over fifteen hundred years ago in the
central America rain forests, where the tropical mix of high rain fall combined
with high year round temperatures and humidity provide the ideal climate for
cultivation of the plant from which chocolate is derived, the cacao tree.“
Chocolate is made from the cocoa bean, found in pods growing from the trunk
and lower branches of the cacao tree, Latin name “ theobroma cacao” meaning
“food of thegods”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 thecacao 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

3
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 “ chocolate”

the English further changed this to chocolate. The Aztec’s regarded chocolate
as an aphrodisiac and their emperor, Montezumreputedly 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 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 practicestill 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 bythe early
17thcentury 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

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

The Quakers

The Quakers were, and still are, a pacifist religious sect, an offshoot of the
puritans of English civil war and pilgrim fathers fame and a history of
chocolate would not be complete without mentioning their part in it. Some of
the most famous names in chocolate were Quakers, who for centuries held a
virtual monopoly of chocolate making in the English speaking world – fry,
Cadbury and row tree are probably the best known. It’s probably before the
time of the English civil war between parliament and king Charles1st 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

5
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, Johannesvanhouten, 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.

1.3 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 Equator 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 only10% of the world crop. The remaining 90% is harvested from
trees of the Forasterofamily, 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.

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The Harvest

Immediately after harvesting, the fruit is treated to prevent it from rotting. At

fermentation sites either in the plantation or at, collecting points, the fruit is
opened.

Fermentation

The fermentation process is decisive in the production of high quality raw

cocoa. The technique varies depending on the growing region.

Drying

After fermentation, the raw cocoa still contains far too much water; in fact
about 60%.Most of this has to be removed.

What could be more natural than to spread the beans out to dry on the sun-
soaked grounder on mats? After a week or so, all but a small percentage of the
water has evaporate

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 fibers, 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 temperature of 130 °C, is carried out

automatically.

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Crushingandshelling

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

Blending

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

Grinding

The crushed cocoa beans, which are still fairly coarse are now pre-ground by
special milling equipment and then fed on to rollers where they are ground into
a fine paste. The heat generated by the resulting pressure and friction causes
the cocoa butter (approximately 50% of the bean) contained in the beans to
melt, producing a thick, liquidmixture.This is dark brown in color with a
characteristic, strong odor. 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.

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, beautifullustre and
delicate, attractive glaze.

Cocoa Powder

After the cocoa butter has left the press; cocoa cakes are left which still
contain a 10 to20% 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

8
is excellent for the preparation of delicious drinks - cocoa. Cocoa paste, cocoa
butter, sugar and milk are the four basic ingredients for making chocolate. By
blending them in accordance with specific recipes the three types of chocolate
are obtained which form the basis of ever product assortment, namely:

Kneading

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

Rolling

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

Coaching

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 to80 °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 flavour 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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 1.4 CONSUMPTION OF CHOCOLATES IN INDIA

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

around 160gms 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.

Currently Cadbury India operates in three sectors viz. Chocolate

Confectionery, Milk Food Drying 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
andCelebrations.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.nks and in the
Candy category

poised In the Milk Food drinks segment their main product isBournvita- the
leading Malted Food Drink (MFD) in the country. Similarly in the medicated
candy categoryHallsis the undisputed leader

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The Cadbury India Brand Strategy has received consistent support through
simple but imaginative extensions to product categories and distribution. A
good example of this isthe 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 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.

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 CHAPTER 2. RESEARCH METHODOLOGY

2.1 Objectives

This project is based on the comparative study consumer satisfaction 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 Customer preference refers to the satisfy their needs and preference
available in market.

To study the factors affecting the consumption pattern.

To study sweetness affecting the purchase decision of customer

Brand of chocolates affecting the purchasing decision of chocolate buyer

2.2 Scope of study

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

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 Maharashtra only.

Limitation of the study

In attempt to make this project authentic and reliable, every possible aspect of
the topic was kept in mind. Nevertheless, despite of fact constraints were at
play during the formulation of this project. The main limitations are as follows

Due to limitation of time only few people were selected for the study. So the
sample of consumers was not enough to generalize the findings of the study.

The main source of data for the study was primary data with the help of self-
administered questionnaires. Hence, the chances of unbiased information are
less.

People were hesitant to disclose the true facts.

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

2.3 Sample size

A sample of 50 people was taken on the basis of convenience. The actual

consumers were contacted on the basis of random sampling.

2.4 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 “customer

satisfaction 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.

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 CHAPTER 3. LITERATURE REVIEW

The story of nestle begins in 1867, when Henri Nestlé developed a baby
formula that saved achild's life and marked the beginning of Nestlé's decades-
old commitment to nutrition.Henri Nestlé, a Swiss pharmacist, begins
experimenting with cow's milk, wheat Fl nestle andsugar to develop an
alternative for infants who cannot be breastfed. His ultimate goal is to
helpreduce infant mortality from malnutrition. Eventually, he develops
FarineLactée Henri Nestlé,which is sold under his own coat of arms. This
remains Nestlé's distinctive brand eventoday.After the formula saves a child's
life, people swiftly recognize its value, and soon FarineLactée Nestlé is
available across Europe.Today, Nestlé SA is the world's largest Food and
Beverages Company, and a global leader inhealth, nutrition and wellness.
Consumers around the world, from village squares in Nigeria tothe skyscrapers
of New York and Chicago, are united by the Nestlé promise of quality,
taste,nutrition and convenience.Though headquartered in Vevey, Switzerland,
we now have 487 factories dotted around theglobe, employing over 250,000
people in 86 countries. Nestle products are available in almostevery country,
and in 2005 nestle global sales reached $73 billion. Nestle operations are
spread across three global zones covering Europe, the Americas, Asia,Oceania
and Africa. Recognising that every region has its special needs, the three zones
operatelocally, but are united by a common vision and priorities. The voices of
even the smallest localmarkets are heard at nestle headquarters in Vevey,
Switzerland. Nestle immense popularity comes from nestle efforts to develop
products that give quality andnutritional benefits at low prices, even in the
most remote regions.We distribute them using local means; in Madagascar, for
instance, backpacker salesmen soldover 12 million MAGGI tablets within six
months, an approach that was duplicated in Pakistanand Mozambique. Nestle
consumers know that they can rely on us to be there when we are needed.

Nestle In Pakistan

Nestle have been serving Pakistani consumers since 1988 when the parent
company Switzerland based on Nestle first acquired share in Milkpark.

Nestle acquires 40% share in Milkpark.

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In 1990, Sheikhupura factory started the production of Nido Milk Powder
cereals

1n 1992, Nestle took over the running of company (Kabirwala plant) and
began to develop its Milk collection network

In 1996 Milkpark was renamed to Nestle Milkpark Ltd

According to a source, "Nestlé milk chocolate bars were first introduced in the
US in 1919."[2] Another source claims that, "The original milk chocolate
formula was invented in Vevey, Switzerland in 1875 by Henri Nestle.
According to Nestle, The bar was discontinued in 2016.

Nestlé Milk Chocolate was created as a competitor to the more-established,

and North American chocolate bar segment-leader Hershey bar[citation
needed], and are even created in a similar form as their competitor. The closest
Nestlé product to them is the Nestlé Crunch, which is very similar to Nestlé
Milk Chocolate the main difference being that Nestle Crunch has puffed rice;
while Nestlé Milk Chocolate does not. A similar product, Yorkie made by
Nestlé, is not to be confused with Nestlé Milk Chocolate as they are
completely different products as the Yorkie bar was originally created by
British firm Rowntree of York in order to compete with Cadbury Dairy Milk.
Nestlé also produces many other brands of chocolate/syrup.

Nestlé S.A. is a Swiss transnational food and drink company headquartered in

Vevey, Vaud, Switzerland. It is the largest food company in the world,
measured by revenues and other metrics, since 2014.[3][4][5][6][7] It ranked
No. 64 on the Fortune Global 500 in 2017[8] and No. 33 on the 2016 edition
of the Forbes Global 2000 list of largest public companies.[9]

Nestlé's products include baby food, medical food, bottled water, breakfast
cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food,
pet foods, and snacks. Twenty-nine of Nestlé's brands have annual sales of
over CHF1 billion (about US$1.1 billion),[10] including Nespresso, Nescafé,
Kit Kat, Smarties, Nesquik, Stouffer's, Vittel, and Maggi. Nestlé has 447
factories, operates in 194 countries, and employs around 339,000 people.[11]

15
It is one of the main shareholders of L'Oreal, the world's largest cosmetics
company.[12]

Nestlé was formed in 1905 by the merger of the Anglo-Swiss Milk Company,
established in 1866 by brothers George and Charles Page, and FarineLacté

e Henri Nestlé, founded in 1866 by Henri Nestlé (born Heinrich Nestle). The
company grew significantly during the First World War and again following
the Second World War, expanding its offerings beyond its early condensed
milk and infant formula products. The company has made a number of
corporate acquisitions, including Crosse & Blackwell in 1950, Findus in 1963,
Libby's in 1971, Rowntree Mackintosh in 1988, and Gerber in 2007.

Nestlé has a primary listing on the SIX Swiss Exchange and is a constituent of
the Swiss Market Index. It has a secondary listing on Euronext.

At work, watching TV, after lunch – we are often unexpectedly seized with the
uncontrollable desire for something sweet. At such times, a piece of chocolate
is just what you need to satisfy your sweet craving.

Happily today, there are many ways to indulge yourself with chocolates. You
can opt for chunks of fine chocolate; delicious chocolate slabs, fruit chocolate
treats, hot drinking chocolate or go for chocolate cakes and pastries.
Interestingly, all of these yummy treats come from one single source: the
cocoa tree!

Early uses of Chocolate

Chocolate comes from the fruit of ‘TheobromaCacao Tree’ (colloquially

known as the cocoa tree).

The cocoa tree belongs to the mallow family and is sensitive to the cold. It
originally grew only in the Amazon region. It was brought over to Central
America by animals. Here, the Olmec’s were the first people to use it, in 1000
BC. Their descendants, the Mayans and the Aztecs, began to blend cocoa with
water. The drinking chocolate that this produced was, however, very different
from what we drink today. Both peoples spiced the drink with chili or pepper.

16
The sweetened version of hot chocolate was first invented in Europe, probably
after the Spanish conquistador Hernan Cortez brought the cacao beans back
from Central America in 1529. For a long time, chocolate remained a luxury
item of the European aristocracy. In the 19th century, however, it became
possible to manufacture chocolate on an industrial scale, making it available to
the wider population in the form of chocolate bars.

How is chocolate made: From bean to bar

The ovoid-shaped fruits of the cocoa tree are around 15 to 25 centimetres long.
To make chocolate, both the pulp and seeds (also known as cocoa beans) are
removed from the fruit, laid out on large plant leaves and covered with other
leaves. The fermentation process begins within five to six days, whereby the
pulp falls apart and the beans start sprouting briefly. Sprouting lets the cocoa
beans develop their typical, slightly bitter taste. After this has developed, the
bean is dried, roasted and ground until it turns into a viscous brown cocoa
paste.

To turn this into chocolate, cocoa butter and sugar are added to the paste,
along with, possibly, powdered milk and other ingredients. Finally it is rolled,
heated, poured into a mould and cooled. The paste hardens during the cooling
process and results in chocolate.

Health Quotient: Ingredients and nutritional values

Chocolate is a real heavyweight when it comes to being a source of energy. A

100 gram bar of milk chocolate provides 450-500 calories, but does not
contain significant amounts of vitamins and minerals. This makes it more of a
treat than a foodstuff.

Antioxidants and more

Did you know that chocolate contains ingredients that protect the body's cells?
The cocoa in chocolate contains what are known as phytochemicals. They
have an antioxidant effect and thus help protect the cells in your body.
Unfortunately, these beneficial effects of antioxidants are minimised by the
addition of milk to cocoa. They only come into play with milk-free plain
chocolate that has a high percentage of cocoa solids as compared to sweeter

17
varieties. So, the darker and more bitter the chocolate, the more cocoa - and
thus antioxidants, it contains.

Chocolate makes you feel good – in more ways than one!

On a bad day, do you feel digging into a bar of chocolate gives you a mood-
lift? You're not far from the truth. The ‘feel good factor’ in chocolate is the
amino acid tryptophan, which is also a component of the ‘feel good hormone’
serotonin. This hormone has an effect on the brain and can lift a person's mood
instantly. So chocolate can, to some extent, sweeten a bad day. So the next
time you feel out of sorts, take some time to really savour this sweet treat.

And remember: when it’s cold outside, a cup of hot chocolate can help you to
relax and brighten up the dark days of winter.

Indulge, but don’t binge!

While no food is inherently "good" or "bad",the comparatively large amounts

of fat and sugar contained in chocolate can lead to excess weight gain, if it is
consumed in large quantities on a regular basis. Ideally, chocolate should be
enjoyed as a special treat. Anyone eating an essentially varied and balanced
diet can happily indulge in the odd sweet treat. The important thing is to keep
an eye on quantities. Don't allow your sweet tooth to take over; instead stick to
small portions, eg mini bars of chocolate like 2 fingers of NESTLÉ KITKAT
or NESTLÉ MUNCH ROLLZ.

Relish your Chocolate

To enjoy chocolate to the full, try this little experiment: think about the piece
of chocolate before enjoying it. Smell it. Now let the chocolate slide under
your tongue and then over to the left and then, the right cheek. Savour the
taste. Allow the rest of it to melt slowly in your mouth. Did you enjoy it?

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 CHAPTER-4

MAIN TEXT/TOPIC/COMPANY PROFILE

CADBURY SCHWEPPES

Cadbury Schweppes plc, a global beverage and confectionary giant withannual

sale of Rs 20,000 crores, is the world’s number one non-cola soft
drinkcompany having bottling and partnership operations in 14 countries and
franchise of its brand in a further 86 countries around the world. ItsHundred
Percent subsidiary in (India named Cadbury Schweppes BeverageIndia
(private) Limited CSBIL) started operation in March 1995. The
first brandwas launched was crush which was later followed by Canada
Dry, SchweppesTonic Water, Schweppes Bitter Lemon.

CSBIL with its franchise agreement with 19 bottles throughout

India proposes tobe a household name. It has a policy for FOBOs (Franchise o
wnedbottling operations unlike Coke and Pepsi which prefer
COBO,s (Companyowned bottling operations). In FOBO the beverages compa
ny only suppliesthe concentrate and the marketing support to build brand equit
y. The otheraspects like machinery, bottling line, land and distribution is the
responsibility of the bottler.As its CEO Mr. Ashok Jain says, “we are the
software, they are the hardware”

4.1 CADBURY’S MARKET SEGMENT

Market place for any product is comprised of many different segments

of consumers, each with different needs and wants. Markets segmentation can
be defined in a number of ways such as:

• Demographic variables (e.g. Consumers are groups, gender, Materia states

income etc.…)
• The lifestyle of consumers (i.e. their interests and activities) the benefits which
consumers look for in a product or on the occasions when the product might be
consumed.

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• Break segment-products which are normally consume as a snatchedbreak and
often with tea and coffee, for example Cadbury’s Perk andsnack
range.Cadbury takes into account all these factors when producing a range of
products. It targets different segments within the market, such as the.
• Impulse segment-these products are often purchase on impulseeating these and
then. They include product such as Cadbury’s Dairy Milk.
• Take home segment-this describes product that are normally purchased in
supermarkets, taken home consumed at a later stage.

To meet the objectives of our project, we segmented the market on thebasis of

age and focused on age group 5 o 35 yrs.

4.2 The Real Taste of Rejuvenation

It was the market-leader, but sales inched along. It focused firmly on its
targetsegment, but the real buyer lay beyond. For seven long years, Cadbury’s
Dairy Milk chocolate suffered stagnancy even as other consumer
productsboomed. Just how did the company rejuvenate an old brand to create
themarketing megs-hit of the 199s?It Stand First Among Second coming. And
it wasn’t so much a re-launch as itwas a process of rejuvenation. Over a period
of 12 months, startingFebruary, 1994, the Rs. 314 crore confectionery makers
Cadbury embarked

Indian marketing. For, it systematically dismantled the franchise that the

company had built over 30 years of its flagship brand, Cadbury’s Dairy
Milk(CDM)-Cadbury’s Milk chocolate until 1986-destroying the very
fundamental of generic association that had made millions of Indians refer to a
bar of a chocolate’s a “Cadbury”. More proof of the chocolate is in the eating:
two years into process, CDM’market share at 25%, with sale rising by an
average 40% per annum.

The Diagnosis

Today, The Real Taste of Life campaign, which served Up chocolate in

general, and COM in particular, into the consciousness of adult, has already
become classic of advertising and marketing. By 1993, Cadbury was
desperately seeking growth for the brand… “With a market share of

20
70%,tryingto winaway customers from competitors in this stagnant
marketwouldn’thelp.They had to find new customers, people who’d never
bought chocolate before. Or,they had to increase consumption levels”. The
obvioussolution, in a peculiar predicament. Despite low penetration, both the
brand and the
categorywere displaying symptoms of age: faltering growth, high recognition,
and lackof excitement. ‘’In mature markets, chocolate straddle a continuum,
from boutique he market research revealed the cause of the grazing:
chocolatewasn’t a snack in India’’

Product-packaged raw indulgence-to a casual food”. So, Cadbury whipped upa

growth solution that involved associating the
brand with snacking andfunctionally, which inevitably go together with high
consumption rates in the Western markets. The next step: identify the barriers
preventing consumers
from chocolateas a snack. A battery of test, both quantitative and qualitative,co
mparing chocolate consumption to a basket of competitive products revealed
an unmistakable answer

The Tests

Despite the Need To Clear The residual memory of CDM’s former

Association, caution prevented a big break with the past, forcing Cadbury to
experiment with a combination of continuity and change. The process entailed
understanding the foundation of the brand, since it was these that

would support the new structure”. Out went the caring - and - sharing element,
but the family context stayed.

“Cadbury had two pillars, so it made sense to change one”

Chocolate should be eaten whenever you feel like. It was an impulse item, so
why shouldn’t it be sold as one?”. The firstof the two commercial focused on
functionality, purging the emotional element. Is the storyline, The father
watches TV, engrossed, gnawing away of CDM.

21
The children enter, followed bythe mother-
but, by that time, the father has completed the
distinctlyunpaternal act of devouring the entire bar. The children are shocked,
where upon the produces another bar for them-only to eat that up too. Finally,
the mother brings another bar out of her bag. The last shot more CDM bars
strew around casually

The second commercial conveyed the same message, depicting four memberof
a family doing their own thing on a Sunday afternoon, each casuallymunching
away on chocolates. The less than-subtle

message: eating chocolate’s just an everyday affair, without

special occasionor relationship coming into play.
Despite their strategic intent, both ads failed on
preparing tests. Why for stators, children were outraged at the idea of a
parentconsuming chocolate, while adults were down right angry at the notion o
f thefather depriving his children of chocolate bar. Just as important, consumer
rejected the idea that chocolate-eating could be equated with mechanical
activities like combing one’s hair. After all, chocolates were about feelings.
Therehad to be magic, romance, love and emotion. These elements had been
ripped away from the advertising. It was sans emotion”

4.3 “Parent Are Different From Adults”

Even as the ad failed, however, they generated a valuable by product, in the

form of a new insight, into adult behaviour. “Using transactional analysis on
response, Cadbury’s found that adult as parents behave very differently from
adults
asadults. People forbid their children from having chips, but gorge themselves.
“The implication”: “The moment the adult was shown in the context of his role
as a parent, all his cognitive preconception about the product would come to
the fore. He’d think about the reasons why, and the block would automatically
come up”

The Prescription

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The crucial question that Cadbury was confronted with: what strategy should it
deploy to rejuvenate COM in a way that would appeal to the child lurking
withinthe adult? To inject a modern flavor into COM, they chose to create a ne
wbrand identity, borrowing a leaf from marketing guru David Aaker, whodecr
ees that brand identity should establisha relationship between the brandand the
customer by generating value proposition involving functional, emotional, or
self-expressive benefits.

“The Ads Had To Be Linkable”

“The consumer will always tell what his current belief system is, not what it
should be Cadbury’s job to mould has habits and behaviour in a way that
would increase consumption for product and brand”

“Impulse DrivesChocolate Sales”

One of the tools Cadbury’s used was Jean –Neal Caperers’ Brand Prism model
to

examine whether contemporary value systems offered a peg on which thebran

d could be judge. The study disclosed, interlaid, a distinct shift fromcollectivis
m to individualism, with thepre-1990’s sacrosanct values of
filialand family love being overshadowed by the manifestation of a larger need
for self -expression. “There was a definite yearning to be freechild”. There
inlay the opportunity for both unshackling consumption and creating all-new
association for CDM

Having decided to barter the distinctly use selfish values of sharing and caring
for the suspiciously self-centred one of
selfexpression, Cadbury’s people insistedthat the rejuvenate be enriched with c
ompensation-and equally enduring positive values: universal truths,
enduring humanvalues, anduniversal moment of joy. To translate the brief into
the commercial, theydecide to simply portray occasion of childlike-but not
childish-behaviour from adults, without explicitly identifying adults as
the target customer

23
“They left the connection to be made by the customer” “In the process they
wearable to get viewer involvement and high levels of empathy.
Nowhere did they
actuallysay, you’re anadult, you can eat it. Because nobody wants to betold”.
Thus it was that, the montage of thechild in the man-the old
mankickingthe football; the pregnant woman carving a chocolate; young girl b
reakinginto a spirit; the young man tossing a bar of chocolate at his sweet-
heartdeparting in a bus-was created.

That the consumption had to be liked before it could penetrate the cultural
résistance to chocolate consumption by adults was obvious. Taking a
contritionstance, Cadbury decided to test the commercial beingdevised
byO&M’screative team not for the tire battery of likeability, comprehension,
credibility and behaviours modification-but only for the first two. “If
askedupfront, the consumer was hardly likely to consider the dramatically-
different idea credible. Nor was there much chance of
her announcing animmediate change in behavior”. But why likeability and co
mprehension?

Simple: the first was meant to be the vehicle on which the daring idea-that
adults should enjoy chocolate-would ride into the consumer’s psyche.In
otherwords, the commercial was meant to make him smile at first-and
only then realize the import once of the message, which is where the
comprehension had to biotested. “What was clear in this case was
that likeability would have to include

4.4 The Real Taste of Life Campaign

The very first ad in the campaign in 94 was ‘block –

Buster’. It depictedthe essence of one and a half glass of milk
pouring in to a boy Dairy Milk unique glass and half in to a chunk
icon shows the glass and a half of full cream
milkflowing in to the chunk of dairy milk conveying the deliciousn
ess and tasteappeal of the gooey, creamy, smooth chocolate inside t

24
he pack thatchildren like. The mnemonic of 1 ½ glass reached to co
nsumer throughevery magazines, poster, T.V, newspaper

The second ad was montage of vignettes from everyday lives

ofyoung and oldwhich focused on showing a series of emotions.
The ad created a being out he child in the man created to bring out the child in
the. The old man kicking thefootball, the pregnant women craving chocolate,
young girls breaking into a spirit,the young man tossing a bar chocolate at his
sweet heart departing into a bus.The common refrain linking them was the
adult in a free child mode-spottiness, impulsive and carefree

The ad was protested among adult’s trough focus groups. The ad receivedan
overwhelming response. It was high on likeability, evoked a great
degreeof empathy and identification consumers’ response were those me……
“Feel likethat…….”. “Every feels like this”……..accessions. Consumers descr
ibed dairymilk as “… of all ages”“Eat, whenever you feel like it…you
donot have to wait for an occasion.”

Dairy Milk had successfully enabled the free child in the consumer subsequent
adverting used the same communication strategy. IN other words, the
commercial was meant to make him smile at first-and only then realize the
import once of themessage, which is where the comprehension had to be
tested. “What was clear
inthis case was that likeability would have to include identification andfeeling
warmth.”

4.5 The New Campaign

And finally, with the launch of the new colloquial advertising campaign
‘Khaannein Wallon Khaannein Ka Bahana Chahiya featuring MTV

25
VJ CyrusBroacha, Cadbury India aimed to ‘substantially’ increase penetration
level of the chocolate category in the next few years

The New campaign is worth noting as it clearly differ from the earlier one in
termsof rectifying the consumer perception about chocolate being an up marke
t impulsedriven product. The attempt now is to change the image, to make
chocolate eating a regular habit. The current estimated penetration level of
thechocolate category is 19% in the urban market. The objective behind tnene
w communication on Cadbury Dairy Milk is to make the chocolatecategory
more socially and culturally relevant and drive penetration in the process

The new campaign has been launched in tandem with the old are@@
Winning‘Kuch Khass Hai’ campaign and the media strategy is to let the two
co –exist towards a common vision “providing a Cadbury in every pocket”

4.6 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 andBaddi (Himachal
Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkata 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 andCelebrations.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.

26
Currently Cadbury India operates in three sectors viz. Chocolate
Confectionery, Milk Food Drying 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
andCelebrations.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.Nks and in the
Candy category

In the Milk Food drinks segment their main product isBournvita- the leading
Malted Food Drink (MFD) in the country. Similarly in the medicated candy
categoryHallsis 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 isthe 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".

The Cadbury India Brand Strategy has received consistent support through
simple but imaginative extensions to product categories and distribution. A
good example of this isthe 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

27
 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 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

4.7 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 60,00people.Their heritage starts back in
1783 when Jacob Schweppes perfected his process for manufacturing
carbonated mineral water in Gene Switzerland. And in 1824 John Cadbury
opened in Birmingham selling cocoa andchocolate.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 program me of organic and
acquisition led growth

va

Concentrating on their core brands in beverages and confectionery since

the1980s, 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

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Cadbury Brands

Chocolates

Snacks

Beverages

Candy

Snacks

Bytes

BEVERAGES

Bournvita

CANDY

Halls

CHOCOLATES

Dairy Milk

5 Star

Perk

Celebrations

Temptation

Éclairs

Gems

Dairy milk

The story of Cadbury Dairy Milk started way back in 1905 at Bourneville,
U.K., but the journey with chocolate lovers in India began in1948

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.

29
 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 Goldcolour. And through the passage of time, this was one property
that both, the brand and the consumer stuck to as a valuable association.

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

PERK

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

With the rise of more value-for-money brands in the wafer chocolate segment,
Cadbury Perk unveiled two new offerings - Perk XL and XXL. In 2004, with
an added dose of 'Real Cadbury Dairy Milk' and an 'improved wafer', Perk
became even more irresistible

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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 Nuttiest 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

Cadbury Temptations is a range of delicious premium chocolate in

fiveflavoursvariants - Roast Almond Coffee, Honey Apricot, Mint Crunch, and
Black Forestand Old Jamaica.

Cadbury, the confectionery giant and the second largest confectionery brand in
the world, is well known for its Creme Egg and Roses selection box and the
world famous Dairy Milk chocolate. Its owned by Mondel?z International.

31
This British multinational confectionery company is based in Uxbridge of
London in the United Kingdom.

It operates in 50 countries all over the world. Cadbury was started by John
Cadbury, who initially sold drinking chocolate, coffee and tea in Birmingham,
England in the year of 1824.

In later years Cadbury collaborated with his brother Benjamin to expand their
business. Then it was passed on to his sons Richard and George. It was George
who built Bournville estate to provide the company’s workers a way to
improve their living conditions

32
Cadbury employs over 1000 people to work for it in Bournville. In 2014, its
owner Mondelez invested a huge amount of £75 million in its production site.

Not to forget, Cadbury’s Bournville also houses Mondelez's Global Centre of

Excellence for Chocolate research and development which in ardently means
that any new range of Cadbury’s chocolate that is brought out, is first
produced at this Birmingham site. The company in 2004 had 8 factories and
3,000 staff working under it.

Trajectory

33
Cadbury since its establishment in 1824 till the 1900’s, faced a lot of ups and
downs but has stood tall against all odds. In 1854, they received a Royal
Warrant as Queen Victoria’s manufacturer of cocoa and chocolate.

In 1905, the first ever Dairy Milk bar was launched, it was also the first ever
time a company in Britain could mass produce milk chocolates. In 1969,
Cadbury Schweppes was formed after the drinks company Schweppes was
merged with Cadbury. In 2003, the brand was re-branded as Cadbury by
rounding off the original name of ‘Cadbury’s’.

Biscuits made by Cadbury such as Cadbury Fingers are produced under the
license of Burton’s Food. Cadbury also happens to own Fry's and Maynards
and Trebor Bassett. 99 Flakes, an ice cream product based on Cadbury’s
products are sold under the license of Frederick's Dairies.

Premier Foods is the label under which Cadbury chocolate spreads and cakes
are manufactured and sold. But the Cadbury cakes were actually originally a
property of the Cadbury Foods Ltd.

34
It has depots throughout the UK with its factories based in Moreton on the
Wirral and Blackpole in Worcester. Cadbury’s other subsidiaries in London
range from Cadbury US Holdings Limited, Cadbury Four LLP, Cadbury Two
LLP, Cadbury One LLP to Cadbury UK Holdings Limited.

Cadbury has its branches worldwide, including in countries like Ireland where
Cadbury Dairy Milk, Boost, Twirl and Flake are made, United States where a
wide variety of products ranging from Chewing Gums to Bubble Gums are
made. It also has branches in Australia, Canada, New Zealand and India.

35
Social Work

Cadbury has more than made its mark in the chocolate manufacturing industry.
It paved the way for social reform in its own way through its establishment of
Bournville.

Reviews

Against all odds and obstacles Cadbury in its own right has reigned supreme in
the chocolate confectionery industry. Its one of the most reputed brands today

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.

History of Nestle

Nestlé’s origins date back to 1866, when two separate Swiss enterprises were
founded that would later form the core of Nestlé. In the succeeding decades,
the two competing enterprises aggressively expanded their businesses
throughout Europe and the United States.In August 1867 Charles (US consul
in Switzerland) and George Page, two brothers from Lee County, Illinois,

36
USA, established the Anglo-Swiss Condensed Milk Company in Cham,
Switzerland. Their first British operation was opened at Chippenham,
Wiltshire, in 1873.In September 1866 in Vevey, Henri Nestlé developed milk-
based baby food, and soon began marketing it. The following year saw Daniel
Peter begin seven years of work perfecting his invention, the milk chocolate
manufacturing process. Nestlé was the crucial co-operation that Peter needed
to solve the problem of removing all the water from the milk added to his
chocolate and thus preventing the product from developing mildew. Henri
Nestlé retired in 1875 but the company, under new ownership, retained his
name as Société FarineLactée Henri Nestlé

In 1877 Anglo-Swiss added milk-based baby foods to their products; in the

following year, the Nestlé Company added condensed milk to their portfolio,
which made the firms direct and fierce rivals.In 1879 Nestle merged with milk
chocolate inventor Daniel Peter.In 1904 François-Louis Cailler, Charles
Amédée Kohler, Daniel Peter and Henri Nestlé participated in the creation and
development of Swiss chocolate, marketing the first chocolate – milk Nestlé.

In 1905 the companies merged to become the Nestlé and Anglo-Swiss

Condensed Milk Company, retaining that name until 1947, when the name
‘Nestlé Alimentana SA’ was taken as a result of the acquisition of Fabrique de
Produits Maggi SA (founded 1884) and its holding company, AlimentanaSA,
of Kempttal, Switzerland. Maggi was a major manufacturer of soup mixes and
related foodstuffs. The company’s current name was adopted in 1977. By the
early 1900s, the company was operating factories in the United States, the
United Kingdom, Germany, and Spain. The First World War created demand
for dairy products in the form of goveNestlé felt the effects of the Second World
War immediately. Profits dropped from US$20 million in 1938, to US$6 million in
1939. Factories were established in developing countries, particularly in Latin
America. Ironically, the war helped with the introduction of the company’s newest
product, Nescafé (“Nestlé’s Coffee”), which became a staple drink of the US military.
Nestlé’s production and sales rose in the wartime economy.

In February 2014, Nestlé sold its PowerBar sports nutrition business to Post
Holdings, Inc.Later, in November 2014, Nestlé announced that it was
exploring strategic options for its frozen food subsidiary, Davigel.
37
In recent years, Nestlé Health Science has made several acquisitions. It
acquired Vitaflow, which makes clinical nutritional products for people with
genetic disorders; CM&D Pharma Ltd., a company that specialises in the
development of products for patients with chronic conditions like kidney
disease; and Prometheus Laboratories, a firm specializing in treatments for
gastrointestinal diseases and cancer. It also holds a minority stake in Vital
Foods, a New Zealand-based company that develops kiwifruit-based solutions
for gastrointestinal conditions.

rnmentcontracts, and, by the end of the war, Nestlé’s production had more than
doubled.

Nestle India- Presence across India

Beginning with its first investment in Mega in 1961, Nestlé’s regular and
substantial investments established that it was here to stay. In 1967, Nestlé set
up its next factory atCholadi (Tamil Nadu) as a pilot plant to process the tea
grown in the area into soluble tea. The Nanjangudfactory (Karnataka), became

38
 operational in 1989, the Samalkha factory (Haryana), in 1993 and in 1995 and
1997, Nestlé commissioned two factories in Goa atPonda and Bicholim
respectively. Nestlé India is now putting up the 7th factory at Pant Nagar in
Uttaranchal.

Nestle’ Story

Nestlé was founded in 1867 on the shores of Lake Geneva in Vevey,

Switzerland and its first product was “FarineLactée Nestlé”, an infant cereal
specially formulated by Henri Nestlé to provide and improve infant nutrition.
From its first historic merger with theAnglo-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
itsnearestcompetitorinthefoodandbeveragesector. 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
500factories 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

39

Chocolates & Confectionary

MILK PRODUCTS AND NUTRITION

Nestle everyday dairy whitener

Nestle everyday ghee

Nestle Milkmaid

Nestle Fresh & Natural Slim Dahi

Nestle everyday Slim

Nestle jeera Raita

Nestle milk

Nestle milkmaid fruit yoghurt

Nestle Silk milk

BEVERAGES

Nescafe classic

Nescafe sunrise

Nestle milo

Nestle 3 in 1

Nestle koolerz

PREPARED DISHES AND COOKING AIDS

Maggi 2 minute noodles

Maggi vegetable atta noodles

Maggi dal atta

Maggi rice noodles mania

Maggi sauces

Maggi pizza mazza

CHOCOLATES & CONFECTIONARY

Nestle kit Kat

40

Nestle kit Kat lite

Nestle munch

Nestle munch pop choc

Nestle milky bar

Nestle milky choo

Nestle bar one

Nestle fun bar

Nestle milk chocolate

POLO

Polo powermint

Nestle éclairs

NESTLEKITKAT

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

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

NESTLE MUNCH

41
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 January2006 with a Calcium Rich recipe, NESTLÉ MILKYBAR is a
favorite with parents 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

Is a milk chocolate with a delicious taste. Kids just love it

CADBURY

42
John Cadbury

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

There was a great deal of competition from continental manufacturers, not

only the French, but also the Swiss, renowned for their milk chocolate. Led by
George Cadbury Junior, the Bourneville experts set out to meet the challenge.
A considerable amount of time and money was spent on research and on new
plant designed to produce the chocolate in larger quantities’ 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 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.

43
 Chapter-4

your Age ??

6%
24%
10-20 years
31% 20-30 years
30-40 years
40 & above

39%

INTERPRETATION

This pie chart gives us idea about the age distribution and it is visible that the
maximum response is given by the age category of 20-30 years and it
38.8%and after that 24.5% people are in between 10-20 years and there is
only 6%40 and above.And response is given by 30-40 year age group people
and it is 30.6%

AGE PERCENTAGE
10-20 years 24.5%
20-30 years 38.8%
30-40years 30.6%
40& above 6%
TOTAL 100%

44
 your Education??

13%
10th pass
17% 12th pass
51%
Graduation
post Graduation
19%

INTERPRETATION

This chart gives us idea about education and maximum people who filled the
form are educated and 51.1% people have completed their graduation after
that 19.1% people are 12th Pass and 17% people are post graduated and there
are also 12.8% people who are just 10th pass.

Your Education Percentage

10th pass 12.8%
12th pass 17%
Graduation 19.1%
Post-graduation 51.1%
Total 100%

45
 Income??

16%
10000 to 15000
16000 to 20000
19% 49%
21000 to 30000
31000 & above

16%

INTERPRETATION

From the above table gives us idea about the income and maximum
percentage i.e. 48.4%people have monthly income in between 10000-15000
and after that two group income ratio.19.4% people having monthly
income in range of 21000-30000which is the highest income in our case
and minimum percentage is 16.1% people have income more than 31000.
And 16.1%have monthly income in between 16000-20000.

Income Percentage
10000 to 15000 48.4%
16000 to 20000 16.1%
21000 to 30000 19.4%
31000 & above 16.1%s
Total 100%

46
 Your occupation?

6%
10%
Student
Salaried Person
53% business
31% Housewife

INTERPRETATION
So it is the most important chart which tells us about the occupation.so what is
occupation? It is a job or profession and in chart is tells us that maximum
percentage .i.e53% people who filled the survey form are students after
students in second place there are 31% people who are salaried person And
two category percentage ratio. There are 5% people who are in the profession
of business and also there are 10%women are housewife. And it is important
thing tha those 6% housewives did the survey
Your occupation Percentage
Student 53%
Salaried person 31%
Business 10%
Housewife 6%
Total 100%

47
 Gender?

0%

Male
Female
50% 50%

INTERPRETATION

From the above table it can be clearly shows that 50% are male they have
equal work as compared to female with 50%. This is because nowadays female
are equally graduated as male and in that 50% are female

Gender Percentage
Male 50%
Female 50%
total 100%

48
 Do You Eat Chocolate??

0%

31% Yes
No

69%

INTERPRETATION

From the above analysis of the given sample of 100 respondents it is

concluded that out of 100 people 69%people likes to eat chocolate while only
31% people don’t prefer to eat chocolate.

Do you eat chocolate? Percentage

Yes 69%
No 31%
Total 100%

49
 which brand of chocolate do you prefer??

0%
26%
Cadbury
Nestle

74%

INTERPRETATION

From the above analysis of given sample who eat chocolates it is concluded
that only 26 people prefer to eat Nestle chocolates while 74 people likes to eat
Cadbury chocolates

Which brand of chocolate Percentage

do you prefer??
Cadbury 74%
Nestle 26%
Total 100%

50
 How frequently do you purchase chocolates?

10%
8%
Weekly
43% Daily
Quaterly
Monthly
40%

Interpretation

According to the above analysis it is concluded that mostly people

purchase chocolates weekly. Only 7 out of 100 purchase chocolates
quarterly.

How frequently do you percentage

purchase chocolate?
Weekly 42.5%
Daily 40%
quarterly 7%
monthly 10%

51
 if your preferred brand is not available for
repeat purchase what will you do??

0% Postpone your purchase

20%
Switch over to other brand

54% go to the shop to search for your

26% preferred brand

Interpretation

According to the above analysis it is concluded that mostly people are loyal to
the brands in the absence of availability of their preferred brand mostly people
like to search for it or they are ready to postpone their purchase.

If your preferred brand is percentage

not available for repeat
purchase than what will
you do?
Postpone your purchase 20%
Switch over to other brand 26%
Go to the shop to search for 54%
your preferred brand
total 100%

52
 if another brand of the same product apper
in the market will you prefer to stop buying
this brand and buy the new brand?

24% no not at all

34%
I may consider
I will

27% cant say

15%

Interpretation

According to the above analysis it is concluded that mostly people are addicted
to the same flavor or taste and they don’t want to change it as out of 100
respondents 34 are not ready to try new brand at any cost.

percentage
No not at all 24%
I may consider 27%
I will 15%
Can’t say 34%
Total

53
 why do you prefer chocolate and nestle

7%
taste
9%
price
43% atteractive ads
17%
quality
secondary brand association

17% availabilityin near by shop

7%

Interpretation

According to the above analysis it is concluded that test of consumers the best
measure to attract customers to purchase more. Its impact is much more than
other factors. While attractive ads and quality play a significant role in this
regard

Why do you prefer Percentage

chocolate and nestle?
Taste 42.9%
Price 7.1%
Attractive ads 16.7%
Availability in near by shop 7%
Quality 16.7%
Secondary brand association 9.5%
total 100%

54
 why don’t you prefer chocolate and nestle?

16% 19%
don’t like the taste
price are high
unaccrative ads
22%
low quality
27%
shop are far away
16%

Interpretation

Why don’t you prefer Percentage

chocolate and nestle?
Don’t like the taste 19%
Price are high 27%
Unattractive ads 16%
Low quality 22%
Shop are far away 19%
Total 100%

55
 CHAPTER 5

Conclusions and Suggestion

Conclusions

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 flavour /taste, quality and image and due to
its hard form. Some people often like to have a chocolate with good flavour,
quality and crunchiness so they are going towards Kit Kat and Munch of
Nestle due to its taste and crunchiness

56
 Suggestions

Company should concentrate more on television for advertisement, as mostly

people get attracted through television only

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

Nestle company should concentrate on its packing as people are least satisfied
with it while Cadbury should concentrate on the shape of a chocolate.

People are Unsatisfied with the price and quantity of chocolate so company
should concentrate in this regard also

Nestle should expand its promotional activities during the time of religious
festival like Diwali

Both company should feedback from customers

Nestle should also introduce some new products to increase its sale

Both companies have been using the promotion media to enhance the reach of
their message to the target audience.

The overall effectiveness of the Cadbury products has been rated higher than
that of Nestle products.

57
 Findings

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

• PRODUCT RESEARCH
Under product research I came to know about the modification which
consumers wants as to the quality, packing, shape, color, and quantity etc. of
their favorite chocolate

• PRICING RESEARCH
This includes ability to consume, to pay for the product, how much a person
can spend on his/her favorite chocolate. In this I have tried to find out
consumer’s price expectations and reactions

• ADVERTISING RESEARCH
Under this I have concluded that whether the advertisement appeals the
consumers or not. This also includes evaluating and selecting the proper
media-mix and measuring advertising effectiveness

Respondents generate the awareness from advertisement sources like

Newspaper, Magazine, Television, Hoardings and Internet for Chocolate and
Milk product of Cadbury as well as Nestle.

58
 BIBLIOGRAPHY

http://www.cadburyindia.com

http://www.nestle.com

http://www.aphrodite-chocolate.co.uk/history chocolate htm

http://www.google.com

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

http://www.packaging technology.com

http://www.chocolatereview.co.uk

59
 Appendix

Your Age?

• 10-20 years
• 20-30 years
• 30-40 years
• 40 &above

Your education?

• 10th pass
• 12th pass
• Graduation
• Post-graduation

Income?

• 10000 to 15000
• 16000 to 20000
• 21000 to 30000
• 30000 & above

Your occupation?

• Student
• Salaried person
• Business
• Housewife

Gender?

• Male
• Female

60
 Do you eat chocolate?

• Yes
• No

Which brand of chocolate do you prefer?

• Cadbury
• Nestle

How frequently do you purchase chocolates?

• Weekly
• Daily
• Quarterly
• Monthly

If your preferred brand is not available for repeat available for

repeat purchase than what will you do?

• Postpone your purchase

• Switch over to other brand
• Go to shop to search for your preferred brand

If another brand of the same product appears in the market

will you prefer to stop buying this brand and buy the new
brand?

• No not at all
• I may consider
• I will
• Can’t say

Why do you prefer chocolate and nestle?

• Taste
• Price
• Attractive ads

61
• Availiability in near by shop
• Quality
• Secondary brand association

Why don’t you prefer chocolate and nestle

• Don’t like the taste
• Price are high
• Unattractive ads
• Low quality
• Shop are far away

62