STUDY OF CONSUMER PREFERENCE TOWARDS CADBURY AND NESTLE CHOCOLATES

Submitted by:

RATUL BHATTACHARYYA

ROLL:151, SEC:C

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.

RESEARCH METHODOLOGY Information from both primary and

secondary sources was collected and analysed.

Primary Sourceschocolate consumption was witnessed

amongst all age groups.A distributor was also interviewed so as

to get information regarding the most important ‘P’ of FMCG marketing – Place.

Extensive interviews were conducted with retailers in the KOLKATA area.

Secondary SourcesInformation: Industry statistics, problems

facing the industry, future outlook, etc. Internet websites Of Cadbury’s, Nestle

and indiainfoline.com, askjeeves.comExtensive use of secondary information

in the form of magazines/journals/newspapers clippings, such as Business World, Business Today, Business India, A&M, Brand Equity, Economic Times, etc.

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.

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’ Brands  Milk Products & Nutrition Beverages Prepared Dishes and Cooking Aids Chocolates & Confectionary

CHOCOLATES & CONFECTIONARYNESTLÉ KIT KATNESTLÉ KIT KAT LITENESTLÉ MUNCHNESTLÉ MUNCH POP CHOCNESTLÉ MILKYBARNESTLÉ MILKYBAR CHOONESTLÉ BAR-ONENESTLÉ FUNBARNESTLÉ Milk ChocolatePOLOPOLO PowermintNESTLÉ Eclairs

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).

Cadbury Brands: Chocolates Snacks Beverages CandyCHOCOLATES Dairy Milk 5 Star Perk Celebrations Temptation Eclairs Gems

V I S I O NThe governing objective for Cadbury India is to

deliver:· Superior Shareholder Value· Cadbury in every pocketADVERTISING & SALES PROMOTIONFollowing are a few advertising slogans used by

Cadbury for introducing the product to the customers:-

· THE REAL TASTE OF LIFE (DAIRY MILK )· THODI SI PET POOJA KABHI BHI KAHI BHI (PERK)· WHEN EVER ON HUNGER STRIKE (PERK)· TAN KI SHAKTI, MAN KI SHAKTI (BOURNVITA)· KUCH ZADA HI SOLID (PICNIC)· YEH CHOCOLATE KHAE AAP INHE KHAE (ECLAIRS)

DISTRIBUTION SYSTEM ADOPTED BY CADBURY Manufacture↓Stockiest/Distributor↓Semi-wholesaler↓Retailer↓User

PREFER CHOCOLATES?

YESNO

Analysis & interpretation:Chocolate is a product which is like by the all age group of people. According to the survey 83% of people says yes they eat chocolate and 17% say no they are not eating chocolate. May be the reason behind that is they are not eating chocolate on daily or weakly basis or may be they are eating any other brand of chocolate.

PREFERENCE OF BRAND

CADBURYNESTLE

Analysis & Interpretation:There are many brands available in the market. But the market leaders in India are basically two brands like Cadbury & Nestle. According to survey 64% of the market is captured by the Cadbury and only 36% of the market is covered by the Nestle. To capture the market the company should do more advertising and sales distribution. And also should maintain quality of the product compare to the competitors.

NESTLE

KITKATMUNCHMILKY BARBAR ONEMILK CHOCOLATE

CADBURY

DAIRY MILK5 STARPEARKCELEBRATIONTEMPTATION

Analysis & Interpretation:In this survey nestle is having five sub-brands like kitkat, Munch, Milkybar, Barone,milk chocolates and their consumption are like kitkat 33% ,munch 56 ,milky bar 3% ,bare one 5% ,and milk chocolate 3%. And if we talk about Cadbury the sub-brand of the Cadbury is dairymilk, 5 star, perk, celebration and Temptation and their consumption are like dairy milk 62%, 5 star 17%, perk 14%, celebration 2% and Temptation 5%. According to the survey the highest selling product is Cadbury.

FORM OF CHOCOLATES

HARDCRUNCHYNUTTIESCHEW

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

SIZE OF PACK

SMALL BIGFAMILY PACK

Analysis & Interpretation:The chocolates are available in the market in different packaging like small, big, & family pack, from the survey we can say that the consumption of the chocolates are more eaten by the teenage group so they more prefer the small packaging because of there availability in market is good and most important thing is its very much affordable. According to the survey 73% are using small pack, 17% are using big pack of the chocolates, 10% are consuming family pack because of there high price. So we can easily see that the consumption of small pack is having boom in the market compare to other packaging.

Sales

FREE GIFTPRICE OFFERANY OTHER

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

Findings

By doing the comparison of Nestle and Cadbury chocolates, we have found that the preference of the chocolates more preferred by the consumer is Cadbury.

  From the analysis we have found that Nestlé’s some brand has covered 50%

of the market in one product (Munch) of the chocolates which is a very good sign for the company.

  Through the research we found that consumer is very conscious about the

quality of the product in that matter they are not ready to compromise. And we found both company product are very qualitative.

  In some cases we found that if a product is not available in the market than

some consumer would to switchover to another product or brand.  So from these survey we have found that the consumption of the chocolates

are more in children and teenage group though having any occasion or not having any occasion. The most selling product of both the companies is in small size of chocolates and there market share is 73% because it’s not much costlier and is also easily available & affordable.

 

SUGGESTIONS AND RECOMMENDATIONS

Chocolates products at kolkata city are available in comparison to previous years, but still there is requirement of development in Chocolate products. Due to increasing overall cost in Chocolate Products everywhere, cost format should be made as such that it is affordable to each and everyone in the society. In this we also found that if the demanded brand is not available, so at that time the customers switch over the brand of the chocolate so, here the company should build up the healthy distribution channel by which company can attract the customers .

BIBLIOGRAPHY Kotler Phillip, Marketing Management, Millennium edition. (Prentice

hall ofIndia).Business todayBusiness World,Business India,A&M, Brand Equity,Economic TimesCMIE reportswww.indiainfoline.comwww.domain_b.comwww.agencyfaqs.comwww.nestle.inwww.nil.comwww.cadburys.comwww.web-enable.com/industry/enabling-scm.aspindiainfoline.comaskjeeves.com