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CONSUMER PREFERENCE
"ll mar#eting starts with the consumer. (o consumer is a very important person to a
mar#eter. 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
mar#eter, he must #now the li#ing or disli#ing of the customers. )e must also #now the
time and the $uantity of goods and services, a consumer may purchase, so that he may
store the goods or provide the services according to the li#ings of the consumers. *one
are the days when the concept of mar#et was let the buyer+s beware or when the mar#et
was mainly the seller+s mar#et. Now the whole concept of consumer+s sovereignty
prevails. %he manufacturers produce and the sellers sell whatever the consumer li#es. In
this sense, “consumer is the supreme in the mar#et!.
"s consumers, we play a very vital role in the health of the economy local, national or
international. %he decision we ma#e concerning our consumption behavior affect the
demand for the basic raw materials, for the transportation, for the ban#ing, for the
production they effect the employment of wor#ers and deployment of resources and
success of some industries and failures of others. %hus mar#eter 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 ran#
ordering of these alternatives, based on happiness, satisfaction, gratification, en0oyment,
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utility they provide. 2ore generally, it can be seen as a source of motivation. In cognitive
sciences, individual preferences enable choice of ob0ectives3goals.
%he study of the consumer preference not only focuses on how and why consumers ma#e
buying decision, but also focuses on how and why consumers ma#e choice of the goods
they buy and their evaluation of these goods after use. (o for success of any company or
product promotion it is very necessary to depart its concentration towards consumer
preference.
SCOPE OF THE STUDY
"s 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 ta#es
place. )ow individuals learn is a matter of interest to mar#eters. %hey want to teach
consumers in their roles as their roles as consumers. %hey 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 mar#eter+s ob0ectives.
%he scope of my study restricts itself to the analysis of consumer preferences, perception
and consumption of Cadbury and Nestle Chocolates. %here are many other brands of
chocolates available but my study is limited to two ma0or players of chocolates leaving
behind the others. %he scope of my study is also restricts itself to anpur region only.
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OBJECTIVES
OF
THE STUDY
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OBJECTIVES OF THE STUDY
%his pro0ect is based on the comparative study consumer behavior towards Nestle and
Cadbury chocolates. 6b0ectives of the study are7
%he other ob0ective is to #now about the customer satisfaction level
associated with the product and the customer preference level.
%o increase customer satisfaction and recapture the mar#et share by fulfilling
the customer needs.
%o study the factors affecting the consumption pattern.
%o (tudy the Customer awareness with chocolate brands 8 price.
%o (tudy about the brand preference in Cadbery 8 Neslte the chocolate in
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Chocolate
The very word !"e# yo$r o$%h w!%er&
Choco'!%e (# ore %h!n )$#% ! food* (%+# ! #%!%e of (nd&
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Choco'!%e#
Chocolates< Chocolates<
=very body has a li#ing for them, be they in the form of bar
6r a tiny little gem,
6r shaped li#e a rectangle,
6r a sphere, a bric# or an >clair.
?or chocolate lovers it is fun,
%o have them during rain, bree@e or sun.
%hey are white and brown in color,
"nd taste sweet and bitter
(ome have them in a glass of cold coffee, or in the form of a toffee.
(ome eat them when they are sad
(ome relish them when they are happy or have sweet dreams,
Aut I feel, to have chocolates
Be don+t need a reason,
Cause we can have it
"nytime, any season<
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H(#%ory of choco'!%e*
%he origin of chocolate can be traced bac# to the ancient 2aya and "@tec civili@ations in
Central "merica, who first en0oyed “chocolati! a muchEpri@ed spicy drin# made from
roasted cocoa beans.
%hroughout its history, whether as cocoa or drin#ing chocolate beverage or confectionary
treat, chocolate has been a much sought after food.
The ,-%ec e.(re
“Chocolate!-in the form of a lu&ury drin#/ was consumed in large $uantities by the
a@tecs7 the drin# was described as “ finely ground, soft, foamy, reddish, bitter with chilli
water, aromatic flowers, vanilla and wild bee honey.
%he dry climate meant the "@tecs were unable to grow cocoa trees, and had to obtain
supplies of cocoa beans from “ tribute! or trade
Don Cor%e#
%he (panish invaded 2e&ico in the 19th century, by this time the "@tecs had created a
powerful empire, and the (panish armies con$uered 2e&ico. Don Cortes was made
captain general and governor of 2e&ico.
Bhen he returned to (pain in15'; he loaded his galleons with cocoa beans and
e$uipment for ma#ing the chocolate drin#. (oon “chocolate! became a fashionable drin#
en0oyed by the rich in (pain.
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Choco'!%e !cro## E$ro.e
"n Italian traveler, ?rancesco carletti, was the first to brea# the (panish monopoly. )e
had visited Central "merica and seen how the Indians prepared the cocoa beans and how
they made the drin#, and by 19F9 chocolate was well established in Italy.
Dr(n"(n/ choco'!%e
%he secret of chocolate was ta#en to ?rance in 1915, when "nne, daughter of Ghillip ' of
(pain married #ing Houis 1 of ?rance
%he ?rench court enthusiastically adopted this new e&otic drin#, which was considered
to have medicinal benefits as well as being a nourishing food. *radually the custom of
drin#ing chocolate spread across =urope, reaching =ngland in the 195F+s
F(r#% choco'!%e for e!%(n/
p until this point all chocolate recipes were based on plain chocolate. It was an =nglish
doctor, sir )ans+s sloane, whoE after traveling in south "mericaE focused on cocoa and
food values, bringing a mil# chocolate recipe bac# to =ngland.
%he original Cadbury mil# chocolate was prepared to his recipe.
H(#%ory*
%he earliest record of chocolate was over fifteen hundred years ago in the central
"merica rain forests, where the tropical mi& 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.
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“ Chocolate is made from the cocoa bean, found in pods growing from the trun# and
lower branches of the cacao tree, Hatin name “ theobroma cacao! meaning “ food of the
gods!
Cacao was corrupted into the more familiar “ cocoa! by the early =uropean e&plorers.
%he 2aya brewed a spicy, bittersweet drin# by roasting and pounding the seeds of the
cacao tree with mai@e and capsicum peppers and letting the mi&ture ferment. %his drin#
was reserved for use in ceremonies as well as for drin#ing by the wealthy and religious
elite they also ate cacao porridge.
%he "@tecs, li#e the 2ayans, also en0oyed cacao as a beverage fermented from the raw beans, which again featured prominently in ritual and as a lu&ury available only to the
very wealthy. %he "@tecs called this drin# &ocolatl, the (panish con$uistadors found this
almost impossible to pronounce and so corrupted it to the easier “ chocolat! the =nglish
further changed this to chocolate.
%he "@tec+s regarded chocolate as an aphrodisiac and their emperor, 2onte@uma
reputedly dran# it fifty times a day from a golden goblet and is $uoted as saying of
&ocolatl7 “ the divine drin#, which builds up resistance and fights fatigue. " cup of this
precious drin# permits a man to wal# for a whole day without food!
Choco'!%e (n E$ro.e
Jocolatl< or chocolat or chocolate as it became #nown, was brought to =urope by
Corte@, by this time the con$uistadors had learned to ma#e the drin# more palatable to
=uropean tastes by mi&ing the ground roasted beans with sugar and vanilla - a practice
still continued today/, thus offsetting the spicy bitterness of the brew the "@tec+s dran#.
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%he first chocolate factories opened in (pain, where the dried fermented beans brought
bac# from the new world by the (panish treasure fleets were roasted and ground, and by
the early 1:th century chocolate powder – from which the =uropean version of the drin#
was madeE was being e&ported to other parts of =urope. %he (panish #ept the source of
the drin#E the beansE a secret for many years, so successfully in fact, that when =nglish
buccaneers boarded what they thought was a (panish “ treasurer galleon! in 15:, 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 #nown, chocolate was so e&pensive at that time, that
it was worth it+s weight in silver - if not gold/, chocolate was treasure indeed <Bithin a few years, the cocoa beverage made from the powder produced in (pain had
become popular throughout =urope, in the (panish Netherlands, Italy, ?rance, *ermany
and – in about 15'F – it arrived in =ngland.
%he first chocolate house in =ngland opened in Hondon in 195: followed rapidly by
many others. Hi#e the already well established coffee houses, they were used as clubs
where the wealthy and business community met to smo#e a clay pipe of tobacco,
conduct business and sociali@e over a cup of chocolate.
B!c" %o %he ,er(c!+#
=vent+s went full circle when =nglish colonists carried chocolate -and coffee/ with them
to =ngland+s colonies in north "merica. Destined to become the united states of "merica
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.
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The 0$!"er#
%he Kua#ers were, and still are, a pacifist religious sect, an offshoot of the puritans of
=nglish civil war and pilgrim fathers fame and a history of chocolate would not be
complete without mentioning their part in it. (ome of the most famous names in
chocolate were Kua#ers, who for centuries held a virtual monopoly of chocolate ma#ing
in the =nglish spea#ing world – fry, Cadbury and row tree are probably the best #nown.
Its probably before the time of the =nglish civil war between parliament and #ing Charles
1st that the Kua#er+s who evolved from the puritans, first began their historic association
with chocolate. Aecause of their pacifist religion, they were prohibited from many normal
business activities, so as an industrious people with a strong belief in the wor# ethic -li#e
the puritans/, they involved themselves in food related businesses and did very well.
Aa#ing was a common occupation for them because bread was regarded as the biblical
“staff of life!, and ba#ers in =ngland were the first to add chocolate to ca#es so it would
be a natural progression for them to start ma#ing pure chocolate. %hey were also heavily
involved in brea#fast cereals but that+s another story.
Bhat is certain is that the fry, row tree and Cadbury families in =ngland among others,
began chocolate ma#ing and in fact Loseph fry of fry 8sons -founded 1:'; in Aristol,
=ngland/ is credited with producing and selling the world+s first chocolate bar. ?ry+s have
now all but disappeared -ta#en over by Cadbury/ and row tree have merged (wiss
company nestle, to form the largest chocolate manufacturer in the world. Cadbury have
stayed with chocolate production and are now, if not $uite the largest, probably one of the
bestE#nown chocolate ma#ers in the world.
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Choco'!%e !# we "now (%
%he first mention of chocolate being eaten in solid form is when ba#ers in =ngland began
adding cocoa powder to ca#es in the mid 19FF+s. %hen in 1;'; a Dutch chemist,
Lohannes van houten, invented a method of e&tracting the bitter tasting fat or “cocoa
butter! from the roasted ground beans, his aim was to ma#e the drin# smoother and more
palatable, however he un#nowingly paved the way for solid chocolate as we #now it.
Chocolate as we #now it today first appeared in 1;4: when fry 8 sons of Aristol,
=ngland – mi&ed sugar with cocoa powder and cocoa butter -made by the van houten
process/ to produce the first solid chocolate bar then in1;:5 a (wiss 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 mil# powder to produce the first
mil# chocolate.
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CHOCOL,TE PRODUCTION
%he cocoaEbean EE the heart of the sweetest delicacy in the world EE is
bitter< %his is why, up to the 1;th century some native tribes ate only the
sweetish flesh of the cocoa fruit. %hey regarded the precious bean as
waste or used it, as was the case among the "@tecs, as a form of currency.
TheV!r(e%(e#
%here are two $uite different basic classifications of cocoa, under which
practically all varieties can be categorised7 Criollo and ?orastero cocoas.
%he pure variety of the Criollo tree is found mainly in its native =$uador
and Mene@uela. %he seeds are of finer $uality than those of the ?orastero variety.
%hey have a particularly fine, mild aroma and are, therefore, used only in the production
of highE$uality chocolate and for blending. )owever, Criollo cocoa accounts for only
1F of the world crop. %he remaining F is harvested from trees of the ?orastero
family, with its many hybrids and varieties. %he main growing area is Best "frica. %he
cocoa tree can flourish only in the hottest regions of the world.
TheH!rve#%
Immediately after harvesting, the fruit is treated to prevent it from rotting.
"t fermentation sites either in the plantation or at, collecting points, the
fruit is opened.
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Feren%!%(on
%he fermentation process is decisive in the production of high $uality raw cocoa. %he
techni$ue varies depending on the growing region.
Dry(n/
"fter fermentation, the raw cocoa still contains far too much water in fact about 9F.
2ost of this has to be removed.
Bhat could be more natural than to spread the beans out to dry on the sunEsoa#ed ground
or on matsO "fter a wee# or so, all but a small percentage of the water has evaporated.
C'e!n(n/
Aefore the real processing begins, the raw cocoa is thoroughly cleaned by
passing through sieves, and by brushing. ?inally, the last vestiges of
wood, 0ute fibres, sand and even the finest dust are e&tracted by powerful
vacuum e$uipment.
Ro!#%(n/
%he subse$uent roasting process is primarily designed to develop the aroma. %he entire
roasting process, during which the air in the nearly 1F feet high furnaces reaches a
temperature of 1F PC, is carried out automatically.
Cr$#h(n/ !nd #he''(n/
%he roasted beans are now bro#en into medium si@ed pieces in the crushing machine.
1:
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B'end(n/
Aefore grinding, the crushed beans are weighed and blended according to special recipes.
%he secret of every chocolate factory lies in the special mi&ing ratios, which it has
developed for different types of cocoa.
1r(nd(n/
%he crushed cocoa beans, which are still fairly coarse are now preEground by special
milling e$uipment and then fed on to rollers where they are ground into a fine paste. %he
heat generated by the resulting pressure and friction causes the cocoa butter
-appro&imately 5F of the bean/ contained in the beans to melt, producing a thic#, li$uid
mi&ture.
%his is dar# brown in color with a characteristic, strong odour. During cooling it
gradually sets7 this is the cocoa paste.
"t this point the production process divides into two paths, but which soon 0oin again. "
part of the cocoa paste is ta#en to large presses, which e&tract the cocoa butter. %he other
part passes through various blending and refining processes, during which some of the
cocoa butter is added to it. %he two paths have re0oined.
Coco!B$%%er
%he 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 gla@e.
Coco! Powder
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"fter the cocoa butter has left the press cocoa ca#es are left which still contain a 1F to
'F proportion of fat depending on the intensity of compression.
%hese ca#es are crushed again, ground to powder and finely sifted in
several stages and we obtain a dar#, strongly aromatic powder, which is
e&cellent for the preparation of delicious drin#s E cocoa. Cocoa paste,
cocoa butter, sugar and mil# are the four basic ingredients for ma#ing chocolate. Ay
blending them in accordance with specific recipes the three types of chocolate are
obtained which form the basis of ever product assortment, namely7
2ne!d(n/
In the case of mil# chocolate for e&le, the cocoa paste, cocoa butter, powdered or
condensed mil#, sugar and flavouring E maybe vanilla E go into the mi&er, where they are
pulveri@ed and #neaded.
Ro''(n/
Depending on the design of the rolling mills, three or five vertically mounted
steel rollers rotate in opposite directions. nder heavy pressure they
pulverise the tiny particles of cocoa and sugar down to a si@e of appro&. F microns. -6ne
micron is a thousandth part of a millimetre./
Conch(n/
Aut still the chocolate paste is not smooth enough to satisfy our palates.
Aut within two or three days all that will have been put right. ?or during
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this period the chocolate paste will be refined to such an e&tent in the conches that it will
flatter even the most discriminating palate.
Conches -from the (panish word concha, meaning a shell/ is the name given to the
troughs in which 1FF to 1FFF #ilograms of chocolate paste at a time can be heated up to
;F PC and, while being constantly stirred, is given a velvet smoothness by the addition of
certain amounts of cocoa butter. " #ind of aeration of the li$uid chocolate paste then
ta#es place in the conches7 its bitter taste gradually disappears and the flavor is fully
developed. %he chocolate no longer seems sandy, but dissolves meltingly on the tongue.
It has attained the outstanding purity, which gives it its reputation.
CONSUMPTION OF CHOCOL,TES IN INDI,
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Chocolate consumption in India is e&tremely low. Ger capita consumption is around 19F
gms in the urban areas, compared to ;E1F#g in the developed countries. In rural areas, it
is even lower. Chocolates in India are consumed as indulgence and not as a snac# food. "
strong volume growth was witnessed in the early F+s when Cadbury repositioned
chocolates from children to adult consumption. %he biggest opportunity is li#ely to stem
from increasing the consumer base. Heading players li#e Cadbury and Nestle have been
attempting to do this by value for money offerings, which are affordable to the masses.
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THE INDUSTRY SCEN,RIO
Bith the entry of multinationals and home companies sprucing up their act, the
confectionery mar#et is booming. 2cinsey 8 Company has estimated the confectionery
industry to touch a whopping Qs. :,FFF crore by the year 'F11.
%ill the eighties, the chocolate mar#et was small and the product category itself
was fu@@y. In the eighties, Cadbury+s E the virtual monopolist E had decided to focus its
efforts on ma#ing chocolates a distinct category with an identity of its own. "nd the
mar#eter had sharply positioned its product at children to do that. )ence, chocolates bore
an “6nly for #ids! tag, and #ept adults at bay.
Ay the end of the eighties, Cadbury+s still ruled the roost with over ;F percent
mar#et share. "nd though several brands E li#e "mul and Campco E tried to brea# into the
mar#et, none of them had succeeded in sha#ing the leader+s grip. In fact, Cadbury+s had
become a brand virtually generic to chocolates. %hen chocolates were used to reward and
reinforce positive behavior and hence were categori@ed as a lu&ury reserved for special
occasions. %his was, a star# contrast to the west where chocolates were snac#ed on, eaten
as mini meals or 0ust to suppress pangs of hunger.
Aut constant wor#ing by players li#e Cadbury+s -reElaunch of Cadbury+s Dairy 2il#
targeting adults and as a casual anyEtime buy/ and Nestle towards e&ploding the myth that
chocolates are meant for children only, has resulted in the segment booming.
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TRENDS IN THE INDUSTRY
Bith socioEeconomic changes rapidly ta#ing place, the young and not so
young population will lead a new life style and chocolate eating is definitely
going to be widespread and acceptable.
In the industry, both population and family incomes as well as urbani@ation
are on the increase.
%here has been a significant growth in the middle class, with 5.; million
people having upgraded to the $uoted middle class.
%here is $uantified data on ?2C* usage having increased.
%han#s to the above reasons the growth in the chocolate mar#et is estimated to be at 3'
in 'F1F. Aut mar#eters in the industry are loo#ing forward to a much higher growth rate,
as India+s per capita consumption of chocolates is only 15 gms versus 9 g in the west.
%he Indian Chocolate mar#et can be sliced into four parts.
1. Mo$'ded Choco'!%e Se/en% 4 comprising slab chocolates li#e Dairy
mil# chocolates, etc. %hese are made by pouring the ingredients into
moulds.
2. Co$n%'(ne Se/en% 4 comprising bars li#e 5 (tar, Aar 6ne, Ger#, it at,
etc. %hese have ingredients other then chocolate and are usually Aar
shaped, ma#ing for chun#y bites.
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3. Choco4P!nned Se/en% 4 comprising chocolate forms li#e Autterscotch,
Nutties, %iffins, etc. Ganned variety has different cores3centres which are
covered with a layer of chocolate.
4. S$/!r4P!nned Se/en% 4 comprising chocolate forms such as *ems,
Chocolate eclairs, etc. %hese generally have a sugar coating on the outside.
%he Chocolate industry has grown from 1'FFF tonnes in 1F to around 'FFF
tonnes in 'F1F. %he re0uvenation e&ercise of Cadbury+s, was one of the #ey reasons
behind the churning up of the country+s Qs. 5FEcrore chocolate mar#et to a growth rate
of '' percent in 19, from a mere ' percent two years earlier.
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CHOCOL,TE M,R2ET SH,RE
D(rec% Co.e%(%(on
"t present there are three ma0or players Nestle, Cadbury+s and "mul in the Indian
Chocolate mar#et. Campco initially tried to brea# into mar#et but failed. Arief profile of
the same has been entailed ne&t7
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C,DBURY+S INDI, LIMITED
Cadbury+s India Htd, has been in India since 14;. Its brands7
Dairy 2il#, 5E(tar, *ems and Chocolate =clairs are the
households names in India today.
In all the segments i.e. moulded chocolates, count chocolates and panned
chocolates, it is undoubtedly the mar#et leader. Cadbury+s has its manufacturing units at
%hane -2umbai/, 2alanpur, Indore -near Gune/, 2ithuri and olapur. It has a strong
distribution networ# with about 5FF distributors in North India and more than lacs retail
outlets being serviced all over India.
In 1:, Cadbury planned to pump in Qs.;FEcrore to up production capacity at a
couple of Cadbury+s factories. %his cash is e&actly double of what+s been invested in
19.
%he Company launched Ger#, a wafer enrobed chocolate in 15. %his was
reactionary to the launch of it at and has been able to counter competition.
C!d5$ry+# D!(ry M('" 6CDM7 4 The F'!/#h(. 5r!nd
CD2, the oldest of Cadbury+s brands was launched in 159. In the early Fs, a
rise in the prices of cocoa, increase in the e&cise duty and a fall in the demand inspired
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the idea of repositioning. %wo years in the process after relaunch Cadbury+s Dairy 2il#+s
mar#et share stood at '5 percent with sales rising by an average 4F percent per annum.
Aesides CD2 Cadbury+s has a number of endorser brands such as ?ruit+n+Nut,
Nut 2il# etc. =ven though contribution of these brands to the company+s bottomline is
very small, they are re$uired in order to ma#e a complete portfolio of offering.
%he Company developed a concentration strategy on CD2, ?ive (tar, Cadbury+
*ems, Cadbury+s =clairs, Ger# and the latest of its offering Gicnic -which has drawn agood response in the mar#et/.
%he Company has also identified sugar confectionery, as a growth sector. It+s first
offering Googly.
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NESTLE INDI, LIMITED
Nestle India Htd. has been in India for more than 5 years
now. %he world+s largest mar#eter of chocolates -became
world number one when it ac$uired Qowntree 2acintosh of
the / E Nestle, made its foray in the Indian chocolate
Industry in November 1F.It launched three products E the mil# chocolate, the bitter chocolate and Crac#le -a
crunchy chocolate/ E in the slabs category and Aar 6ne in count lines.
Cadbury+s was $uic# to react, and launched a whole host of products in
succession7 "ll (il# mil# chocolate, Creamy Aar, and a new version of 5 (tar.
Nestle, in the beginning did not have its own manufacturing facility. It had an
alliance with Campco to manufacture chocolates. Hater, in 15 a stateEofEart
manufacturing plant was set up at Gonda, *oa at a cost of Qs. 5F crores. %his unit too#
care of the entire it at production. )owever, the production tieEup with Campco still
continued.
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L!$nch of 2(% 2!%
it at, one of world+s most popular chocolate, was launched in India in 15.
Bithin months of its launch, it fulfilled every target Nestle had set. Its launch was
accompanied by the launch of Cadbury+s Ger# in order to counter it at and safeguard
the flagship brand – CD2. it at has been able to define a new segment in the industry
in the form of the wafer enrobed any time snac#.
it at outsells Ger# in the outlets where both are available. In the crucial mar#ets of
Aombay and Delhi both is running nec#EandEnec#. It has even said to have threatened the
mother brand, Cadbury Dairy 2il#.
NESTLE+# New L!$nche#
Br!nd L!$nch
"llen (plash -(ugar Candies/ (elect Cities
"fter =ight 2ints Delhi 8 2umbai
Hion Bafer Aars Delhi 8 2umbai
F$%$re O$%'oo"
?ocus will be on chocolates and confectionery followed by culinary products
which include the 2aggi range and coffee.
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,$'
*u0arat Cooperative 2il# 2ar#eting ?ederation -*C22?/ launched the "mul
Chocolate way bac# in 1:4. Bith its mil# chocolates, Aadam Aar, Crunch and ?ruit n
Nut has a mar#et share of about 5. Due to lac# of focus and with multinationals
spending huge amounts on advertisements its mar#et share has been falling.
*C22? is involved in a large number of products, of which chocolates
constitutes 0ust 1E'. %he company is not concentrating much on its chocolate business.
"s of now, "mul chocolates are not on company+s focus. Interestingly, aira District
Cooperative 2il# Groducers Htd. -DC2GH/ E the manufacturer of "mul chocolate E is
selling whatever it produces. Himited capacity is also a reason for the share it has.
)owever, "mul+s memorable advertising campaign positioning it as a “ A Gift for
Someone You Love”, saw the sales graph rising. "mul+s sales grew by then. =ver
since, "mul has maintained a low profile.O%her Doe#%(c P'!yer#
%he only other organi@ed player in the mar#et is Campco, which has an insignificant
share of the mar#et. It is supplying its production to Nestle. "part from this Campco did
come up with its new brands li#e %reat. Aut crunch of resources grossly effected the pace
of the company and is hardly to be heard of today.
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FOREI1NS BR,NDS
Considering the high growth potential, various multinationals wanted to set up facilities
in India -2ars being one of them/. )owever, shortage of cocoa, seasonality in demand,
and the absence of a proper cold chain deterred them from investing in India. %he
government also moved the import of chocolates from special item list to open general
license category. %he duty structure was also reduced. %his resulted in ma#ing import of
foreign brands easier and price competitive.
Due the above, 2ars Inc.Ethe ( giant, who had decided to set up facilities in15-the site for which was also selected/, decided to postpone its investment plans.
"n alternate strategy was formulated to import 2ars chocolate brands into India through
(arura Ausiness -I/ Htd. (arura, which came into e&istence about a year ago, imports
2ars brands and sells through its own distribution networ#. )ighlights of the strategy
being followed are mentioned below7
• Imports 2ars brands every 4F days, after careful demand analysis. %a#es 'F to ''
days to reach India.
• D$%y S%r$c%$re
C$#%o# D$%y 89:
Co$n%er4ve('(n/ D$%y 6! for of e;c(#e7 <:
S.ec(!' D$%y 6S$rch!r/e7 3:
%he import duty on finished product is e&pected to come down to 'FE'5 percent in a
phased manner.
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• D(#%r(5$%(on Lo/(#%(c#
%he company has its operations being controlled from Delhi. " typical ?2C*
distribution chain is being utili@ed. %his includesE
Carrying 8 ?orwarding "gents
Distributors
Qetailers 8 Bholesalers-about 5FFF as of now/
Consumers
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In Delhi, the company reaches the retailers and the wholesalers on its own. It
operates about vans, and each retailer is serviced twice a month. " soft launch has been
done in North India. %he following (tates have been covered in the first phase -including
the distribution chain/7
ST,TES DISTRIBUTION CH,IN
De'h( D(rec%'y 5y Co.!ny
P$n)!5 = C>F !nd ? D(#%r(5$%or#
R!)!#%h!n -Laipur, Lodhpur/ = C>F !nd @ D(#%r(5$%or#
U%%!r Pr!de#h > U%%!r!nch!' -anpur,
Nainital, "llahabad, "gra, Maranasi,
Dehradun/
= C>F !nd =< D(#%r(5$%or#
,##! -*uwahati/ = D(#%r(5$%or
O%her ,re!# -Chandigarh, (himla, al#a/ = C>F !nd < D(#%r(5$%or#
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OTHER FOREI1N BR,NDS
Nestle has also recently launched its foreign brands by importing them into India. %hese
include Hion and "fter =ights.
F$%$re of %he I.or%ed Br!nd#*
%he future of this segment is highly dependent on e&traneous factors li#e,
government policies regarding import of chocolates and the duties structure therein. "ny
movement can ma#e these players price competitive. In December 1:, a no. of products reaching e&piry are said to have been dumped into India due to favorable import
policy -this is when foreign brand imports li#e (arura+s products came into the mar#et/.
INDIRECT COMPETITION*
(ince the target audience includes, consumers of not only chocolates but also of
biscuits and confectionery, it faces indirect competition from these product categories.
"lso, other confectionery products li#e toffees, candies etc have proved to be indirect
competition -however would be limited since we are targeting small #ids segment/.
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NESTLE+
Ne#%'e Ind(!
Nestle+ India is a subsidiary of Nestle+ (.". of (wit@erland. %he company insists on
honesty, integrity and fairness in all aspects of its business and e&pects the same in its
relationships.
Ne#%'e Ind(!4 Pre#ence ,cro## Ind(!
Aeginning with its first investment in 2oga in 191, Nestl>+s regular and substantial
investments established that it was here to stay. In 19:, Nestl> set up its ne&t factory at
Choladi -%amil Nadu/ as a pilot plant to process the tea grown in the area into soluble tea.
%he Nan0angud factory -arnata#a/, became operational in 1;, the (amal#ha factory
-)aryana/, in 1 and in 15 and 1:, Nestl> commissioned two factories in *oa at
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Gonda and Aicholim respectively. Nestl> India is now putting up the :th factory at Gant
Nagar in ttaranchal.
Ne#%'e+ S%ory
Nestl> was founded in 1;9: on the shores of Ha#e *eneva in Mevey, (wit@erland and its
first product was “?arine Hact>e Nestl>!, an infant cereal specially formulated by )enri
Nestl> to provide and improve infant nutrition. ?rom its first historic merger with the
"ngloE(wiss Condensed 2il# Company in 1F5, Nestl> has grown to become the
world+s largest and most diversified food Company, and is about twice the si@e of its
nearest competitor in the food and beverage sector.
Nestl>+s trademar# of birds in a nest, derived from )enri Nestl>+s personal coat
of arms, evo#es the values upon which he founded his Company. Namely, the values of
security, maternity and affection, nature and nourishment, family and tradition. %oday, it
is not only the central element of Nestl>+s corporate identity but serves to define the
Company+s products, responsibilities, business practices, ethics and goals.
In 'FF4, Nestl> had around '4:,FFF employees worldwide, operated 5FF
factories in appro&. 1FF countries and offered over ;,FFF products to millions of
consumers universally. %he 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. Nestl>+s activities contribute to
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and nurture the sustainable economic development of people, communities and nations.
"bove all, Nestl> is dedicated to bringing the 0oy of *ood ?ood, *ood Hife+ to people
throughout their lives, throughout the world.
Ne#%'e+ Br!nd#
2il# Groducts 8 Nutrition
Aeverages
Grepared Dishes and Coo#ing "ids
Chocolates 8 Confectionary
MIL2 PRODUCTS ,ND NUTRITION*
N=(%HR =M=QSD"S Dairy Bhitener
N=(%HR =M=QSD"S (lim
N=(%HR =M=QSD"S *hee
N=(%HR 2IH2"ID
N=(%HR ?resh TnT Natural Dahi
N=(%HR ?resh TnT Natural (lim Dahi
N=(%HR Leera Qaita
N=(%HR 2IH2"ID ?ruit yoghurt
N=(%HR 2il#
N=(%HR (lim 2il#
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BEVER,1ES*
N=(C"?R CH"((IC
N=(C"?R (NQI(=
N=(%HR 2IH6
N=(C"?R in 1
N=(C"?R ooler@
PREP,RED DISHES ,ND COO2IN1 ,IDS
2"**I 'E2IN%= Noodles
2"**I Megetable "tta Noodles
2"**I Dal "tta Noodles
2"**I Qice Noodles 2ania
2"**I (auces
2"**I Gi@@a 2a@@a
2"**I )ealthy (oups
2"**I )ealthy (oupE (an0eevni
2"**I 2"*IC Cubes
CHOCOL,TES > CONFECTION,RY
N=(%HR I% "%
N=(%HR I% "% HI%=
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N=(%HR 2NC)
N=(%HR 2NC) G6G C)6C
N=(%HR 2IHSA"Q
N=(%HR 2IHSA"Q C)66
N=(%HR A"QE6N=
N=(%HR ?NA"Q
N=(%HR 2il# Chocolate
G6H6
G6H6 Gowermint N=(%HR =clairs
NESTLE2IT2,T
are crisp wafer fingers covered with choco layer. NESTLÉ KIT KAT has a unique finger forat with
a !"rea#ing$ ritual attached to it.
N=(%HR I% "% is one of the most successful brands in the world and every
year over 1' billion N=(%HR I% "% fingers are consumed around the globe.
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NESTLE MUNCH
N=(%HR 2NC) is wafer layer covered with delicious choco layer. N=(%HR 2NC)
is so crisp, light and irresistible that you 0ust canTt stop 2unching.T N=(%HR 2NC) is
the largest selling ( in the category<
NESTLE MIL2Y B,R*
N=(%HR 2IHSA"Q is a delicious mil#y treat, which #ids love. Qelaunched in Lanuary
'FF9 with a Calcium Qich recipe, N=(%HR 2IHSA"Q is a favorite with parents to
treat their #ids with.
NESTLE B,R4ONE
is a luscious nougat and caramel with delicious choco layer. N=(%HR A"QE6N=
constantly reminds you that it is %ime for "ctionT.
NESTLE M('" Choco'!%e*
N=(%HR 2il# Chocolate is a mil# chocolate with a delicious taste. ids 0ust love it<
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C,DBURY
How C!d5$ry Choco'!%e (# !de
Lohn Cadbury
2il# chocolate for eating was first made by Cadbury in 1;: by adding mil# powder
Lohn paste to the dar# chocolate recipe of cocoa mass, cocoa butter and sugar. Ay todayTs
standards this chocolate was not particularly good7 it was coarse and dry and not sweet or
mil#y enough for public tastes.
%here was a great deal of competition from continental manufacturers, not only the
?rench,but also the (wiss, renowned for their mil# chocolate.
Hed by *eorge Cadbury Lunior, the Aournville e&perts set out to meet the challenge. "
considerable amount of time and money was spent on research and on new plant designed
to produce the chocolate in larger $uantities.
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" recipe was formulated incorporating fresh mil#, and production processes were
developed to produce a mil# chocolate Tnot merely as good as, but better thanT the
imported mil# chocolateT.
?our years of hard wor# were invested in the pro0ect and in 1F5 what
was to be CadburyTs top selling brand was launched.
%hree names were considered7 Lersey, )ighland 2il# and Dairy 2aid.
Dairy 2aid became Dairy 2il#, and CadburyTs Dairy 2il# , with its uni$ue flavour and
smooth creamy te&ture, was ready to challenge the (wiss domination of the mil#chocolate mar#et.
Ay 11 Dairy 2il# had become the companyTs best selling line and in the mid twenties
CadburyTs Dairy 2il# gained its status as the brand leader, a position it has held ever
since.
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COMP,NY OVERVIEA OF C,DBURY INDI,
Cadbury began its operations in 14; by importing chocolates and then reEpac#ing them
before distribution in the Indian mar#et. "fter 5 years of e&istence, it today has five
companyEowned manufacturing facilities at %hane, Induri -Gune/ and 2alanpur
-*walior/, Aangalore and Aaddi -)imachal Gradesh/ and 4 sales offices -New Delhi,
2umbai, ol#ota and Chennai/. %he corporate office is in 2umbai.
Currently Cadbury India operates in three sectors vi@. Chocolate Confectionery, 2il#
?ood Drin#s and in the Candy category.
In the Chocolate Confectionery business, Cadbury has maintained its undisputed
leadership over the years. (ome of the #ey brands are Cadbury Dairy 2il# , 5 (tar , Ger# ,
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Rclairs and Celebrations. Cadbury en0oys a value mar#et share of over :F E the highest
Cadbury brand share in the world< %heir flagship brand Cadbury Dairy 2il# is
considered the gold standard for chocolates in India. %he pure taste of CD2 defines the
chocolate taste for the Indian consumer.
In the 2il# ?ood drin#s segment their main product is Aournvita E the leading 2alted
?ood Drin# -2?D/ in the country. (imilarly in the medicated candy category )alls is the
undisputed leader.
%he Cadbury India Arand (trategy has received consistent support through simple butimaginative e&tensions to product categories and distribution. " good e&le of this is
the development of Aytes. Crispy wafers filled with coca cream in the form of a bagged
snac#, Aytes is positioned as %he new concept of sweet snac#ing. It delivers the taste of
chocolate in the form of a light snac#, and thus heralds the entry of Cadbury India into
the growing bagged (nac# 2ar#et, which has been dominated until now by (alted
Aagged (nac# Arands. Aytes was first launched in (outh India in 'FF.
(ince 195 Cadbury has also pioneered the development of cocoa cultivation in India.
?or over two decades, it has wor#ed with the erala "griculture niversity to underta#e
cocoa research and released clones, hybrids that improve the cocoa yield.
%oday, Cadbury is poised in its leap towards $uantum growth and new categories of
business, namely gums, mints, snac#ing and gifting. It is a part of the Cadbury
(chweppes *roup, worldTs No.1 Confectionery Company.
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C,DBURY AORLD AIDE
Cadbury is the worldTs largest confectionery company and have a
strong regional presence in beverages in the "mericas and "ustralia.
Bith origins stretching bac# over 'FF years, today their products E which include brands
such as Cadbury, (chweppes, )alls, %rident, Dr Gepper, (napple, %rebor, Dentyne,
Aubblicious and Aassett E are en0oyed in almost every country around the world. Be
employ around 9F,FF people.
%heir heritage starts bac# in 1:; when Lacob (chweppe perfected his
process for manufacturing carbonated mineral water in *eneva,
(wit@erland. "nd in 1;'4 Lohn Cadbury opened in Airmingham
selling cocoa and chocolate.
%hese two great household names merged in 19 to form Cadbury (chweppes
plc. (ince then they have e&panded their business throughout the world by a
programme of organic and ac$uisition led growth.
Concentrating on their core brands in beverages and confectionery since the
1;Fs, they have strengthened their portfolio through almost fifty ac$uisitions, including
brand icons such as 2ottTs, Canada Dry, )alls, %rident, Dentyne, Aubblicious, %rebor,
Aassett, Dr Gepper, : p and (napple.
E It employ 9F,FFF people in over 'FF countries
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E Borlds No 1 Confectionery company
E BorldTs No ' *ums company
E BorldTs No beverage company
C!d5$ry Br!nd#*
Chocolates
(nac#s
Aeverages
Candy
SN,C2S*
Aytes
BEVER,1ES
Aournvita
C,NDY
)alls
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CHOCOL,TES
Dairy 2il#
5 (tar
Ger#
Celebrations
%emptation
=clairs
*ems
D,IRY MIL2
%he story of Cadbury Dairy 2il# started way bac# in 1F5 at Aournville, .., but the
0ourney with chocolate lovers in India began in 14;.
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%he variants ?ruit 8 Nut, Crac#le and Qoast "lmond, combine the classic taste of
Cadbury Dairy 2il# with a variety of ingredients and are very popular amongst teens 8
adults.
Cadbury Dairy 2il# has e&citing products on offer E Cadbury Dairy 2il# Bowie,
chocolate with Disney characters embossed in it, and Cadbury Dairy 2il# ' in 1, a
delightful combination of mil# chocolate and white chocolate. *iving consumers an
e&citing reason to #eep coming bac# into the fun filled world of Cadbury.
%oday, Cadbury Dairy 2il# alone holds F value share of the Indian chocolate mar#et.
ST,R
the second largest after Cadbury Dairy 2il# with a mar#et share of 14, Cadbury 5 (tar
moves from strength to strength every year by increasing its user base.
Haunched in 19 as a bar of chocolate that was hard outside with soft caramel nougat
inside, Cadbury 5 (tar has reEinvented itself over the years to #eep satisfying the
consumers taste for a high $uality 8 different chocolate eating e&perience.
6ne of the #ey properties that Cadbury 5 (tar was associated with was its classic *old
colour. "nd through the passage of time, this was one property that both, the brand and
the consumer stuc# to as a valuable association.
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2ore recently, to give consumers another reason to come into the Cadbury 5 (tar fold,
Cadbury 5 (tar Crunchy was launched. %he same delicious Cadbury 5 (tar was now
available with a dash of rice crispies.
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PER2
Cadbury launched Ger# in 19. Bith its light chocolate and wafer construct, Cadbury
Ger# targeted the casual snac#ing space that was dominated primarily by chips 8 wafers.
Bith the rise of more valueEforEmoney brands in the wafer chocolate segment, Cadbury
Ger# unveiled two new offerings E Ger# JH and JJH. In 'FF4, with an added dose of
TQeal Cadbury Dairy 2il#T and an Timproved waferT, Ger# became even more irresistible
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CELEBR,TIONS
Cadbury Celebrations was aimed at replacing traditional gifting options li#e 2ithai and
dryE fruits during festive seasons.
Cadbury Celebrations is available in several assortments7 "n assortment of chocolates
li#e 5 (tar, Ger#, *ems, Dairy 2il# and Nutties and rich dry fruits enrobed in Cadbury
dairy mil# chocolate in 5 variants, "lmond magic, raisin magic, cashew magic, nut
butterscotch and caramels.
%he super premium Celebrations Qich Dry ?ruit Collection which is a festive offering is
an e&otic range of chocolate covered dry fruits and nuts in various flavours and the
premium dar# chocolate range which is e&otic dar# chocolate in luscious flavours.
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TEMPT,TION
Cadbury %emptations is a range of delicious premium chocolate in five
flavours variants E Qoast "lmond Coffee, )oney "pricot, 2int Crunch, Alac#
?orest and 6ld Lamaica.
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RESE,RCH
METHODOLO1Y
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RESE,RCH METHODOLO1Y
%his chapter describes the methodology of the study. %his pro0ect is based on information
collected from primary 8 (econdary sources. "fter the detailed study, an attempt has
been made to present analysis of consumption of Cadbury and nestle chocolates
consumed by the people. %he data had been used to cover various aspects li#e
consumption, consumer+s preference and customer+s satisfaction regarding Cadbury and
Nestle chocolates. In collecting re$uisite data and information regarding the topic
selected.
S$rvey de#(/n*
%he study is a cross sectional study because the data were collected at a single point of
time. ?or the purpose of present study a related sample of population was selected on the
basis of convenience.
S!.'e S(-e !nd De#(/n*
" sample of 1FF people was ta#en on the basis of convenience. %he actual consumers
were contacted on the basis of random sampling.
Re#e!rch Per(od*
Qesearch wor# is only carried for ' or wee#s.
Re#e!rch In#%r$en%*
%his wor# is carried out through selfEadministered $uestionnaires. %he $uestions included
were open ended, dichotomous and offered multiple choices.
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D!%! Co''ec%(on*
%he data, which is collected for the purpose of study, is divided into ' bases7
Pr(!ry So$rce* %he primary data comprises information survey of
“Comparative study of consumer behavior towards Nestle and Cadbury
chocolates!. %he data has been collected directly from respondent with the help
of structured $uestionnaires.
Second!ry So$rce* %he secondary data was collected from internet,
Qeferences from Hibrary.
D!%! ,n!'y#(#*
%he data is analy@ed on the basis of suitable tables by using mathematical techni$ues.
%he techni$ue that I have used is bar techni$ue.
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D,T, ,N,LYSIS
>
INTERPRET,TION
5:
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0$e=& Do yo$ e!% choco'!%e
LI2IN1 FOR THE CHOCOL,TES
T!5'e*=
L("(n/ for %he Choco'!%e Ye# No
N$5er of Re#.onden%# 5 5
Liking For the Chocolate
%&
&'
('
)'
*'
+'
,''
,Response
N u m
b e r o f P e r s o n
-es
No
Chart:1
?rom the above analysis of the given sample of 1FF respondents it is concluded that out
of 1FF people 5 people li#es to eat chocolate while only 5 people don+t prefer to eat
chocolate.
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0$e <& Ah(ch defren% (# /ro$.# re#.nden% do '("e %he choco'!%e
DIFFERENT ,1E 1ROUPS
T!5'e*<
,1E 1ROUPS 94=9 =94<9 <9439 ,BOVE 39
NUMBER OF
RESPONDENTS
14 4' 11
AGE GROP!
,)
)(..
,,
'
,'('
.')'
&'
,
AGE GROP!
N " # E R O F
R
E ! P O N $ E N %
'/,'
,' to ('
(' to .'
A"ove .'
Ch!r%*<
"ccording to the above analysis it is concluded that I have surveyed 1FF respondents out
of which 14, 4', , 11 belongs to age group FE1F, 1FE'F, 'FEF, aboveF respectively.
0$e3& Ah(ch 5r!nd of choco'!%e do yo$ .refer
5
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PREFERENCE ,CCORDIN1 TO ,1E 1ROUPS
T!5'e*3
,1E 1ROUPS
BR,NDS 94=9 =94<9 <9439 ,BOVE 39C,DBURY : 5 '4 5NESTLE 5 9 ; 5
NO CONSUMTION ' 1 1 1
PREFERENCE ACCOR$&NG %O AGE
GROP!
0
.&
()
&
&
*
+
&
(
,
,
,
'
&
,'
,&
('
(&
.'
.&
)')&
'/,' ,' to
('
(' to
.'
A"ove
.'
A1E 12345S
N " # E R O F C O N ! " E R
N3NE
NESTLE
6A7842-
Ch!r%*3
"ccording to the above analysis it is concluded that people of different age groups prefer
mostly Cadbury brand of chocolate while Nestle brand is least preferred by the age group
between 1FE'F. Geople of age group above F e$ually li#es to have both brands.
BR,ND PREFERENCE
0$e& 8& Ah(ch 5r!nd of choco'!%e do con#$er .refer
9F
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T!5'e*8
BR,NDS PREFERENCE BY CONSUMERS
C,DBURY :NESTLE ''
#ran' Preference
0
((
'
('
)'
*'
+'
,Chocolate #ran's
N o ( o f P e r s o n
6ad"ury
Nestle
Ch!r%*8
?rom the above analysis of given sample of respondents who eat chocolates it is
concluded that only '' people prefer to eat Nestle chocolates while : people li#es to eat
Cadbury chocolates.
0$e& & Ah(ch .rod$c% of ced5ery do '("e 5y con#$er
PURCH,SE OF CHOCOL,TES
91
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PURCH,SE OF C,DBURY CHOCOL,TES
T!5'e*
C,DBURY CHOCOL,TES
SUB4 BR,NDS NUMBER OF RESPOND,NTSD,IRY MIL2 9 ST,R 94PER2 91CELEBR,TIONS 4TEMPT,TIONS 41
9'
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Ca'bur) chocolates Purchase' #) People
*%*) *,
)% ),
'
('
)'
*'
+'
,!ub*bran's of Ca'bur) Chocolate
N u m b e r o f P e r s o n s
7airy 9il# & Star 5er# 6ele"rations Teptation
Ch!r%*
?rom the above analysis of given sample of : respondents who eat Cadbury chocolates
it is concluded that mostly people has purchased Dairy 2il# subEbrand of Cadbury while
%emptation is least purchased by the people.
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0$e @& Ah(ch Prod$c% of ne#%'e do '("e 5y con#$er
PURCH,SE OF NESTLE CHOCOL,TES
T!5'e*@
NESTLE CHOCOL,TES
SUB4 BR,NDS NUMBER OF RESPOND,NTS
2IT 2,T 1:MUNCH 1MIL2Y B,R 1;B,R4 ONE 19MIL2 CHOCOL,TE 11
94
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Nestle chocolates Purchase' b) People
,0
,%,+
,&
,,
'
(
)
*
+
,'
,(
,)
,*
,+
('
!ub*bran's of Nestle Chocolates
N u m b e r o f P e r s o n s
Kit Kat 9unch 9il#y 8ar 8ar/3ne 9il# 6hocolate
Ch!r%*@
?rom the above analysis of given sample of '' respondents who eat Nestle chocolates it
is concluded that mostly all subEbrands are purchased by people but top most is 2unch
followed by 2il#y Aar and it at. Bhile surveying we have found that many people are
not aware of 2il# Chocolate.
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0$e& & Over!'' .$rch!#e of 5r!nd of choco'!%e !ccord(n/ %o con#$er
OVER,LL PURCH,SE OF CHOCOL,TES
T!5'e*
OVER,LL PURCH,SE OF SUB4 BR,NDS OF CHOCOL,TES
SUB4BR,NDS PERCENT,1E OF PURCH,SE
D,IRY MIL2 1 ST,R 1'PER2 11
CELEBR,TIONS TEMPT,TIONS :2IT 2,T 1FMUNCH 11MIL2Y B,R 11B,R ONE MIL2 CHOCOL,TE :
99
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!ub*bran's of Chocolates purchase' #) People
,:
,(:
,,:
%:0:,':
,,:
,,:%:
0:
7airy 9il#
& Star
5er#
6ele"rationsTeptation
Kit Kat
9unch
9il#y 8ar
8ar/3ne
9il# 6hocolate
Ch!r%*
?rom the above analysis it is concluded that overall Dairy 2il# is purchased by people
followed by 5 (tar while %emptation and 2il# Chocolate is least purchased by people.
9:
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0$e& ?& R!n" %he #$5 5r!nd# of c!d5ery choco'!%e !cco$d(n/ %o
con#$er .refence
PREFERENCE OF SUBR,NDS OF CHOCOL,TES
PREFERENCE OF SUBR,NDS OF C,DBURY CHOCOL,TES
T!5'e* ?
C,DBURY CHOCOL,TESSUB4 BR,NDS 1R,ND TOT,L
OF
PREFERENCE
,VER,1E
61R,ND TOT,L No&
OF RESPOND,NTS7
R,N2S
D,IRY MIL2 15 4. 1 ST,R ''F 'PER2 1:9 '.4 CELEBR,TIONS 19 1.;9 4TEMPT,TION 1 1.'4 5
"ccording to the above analysis it is concluded that in Cadbury Arand, Dairy mil# is the
most preferred subEbrand as it is ran#ed first by the respondents. Bhile %emptation is the
least preferred subEbrand of Cadbury chocolates.
0$e& & R!n" %he #$5 5r!nd# of Ne#%'e choco'!%e !cco$d(n/ %o con#$er
.refence
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PREFERENCE OF SUB4BR,NDS OF NESTLE CHOCOL,TES
T!5'e*
NESTLE CHOCOL,TES
SUB4 BR,NDS 1R,ND
TOT,L OF
PREFERENCE
,VER,1E
61R,ND TOT,L No& OF
RESPOND,NTS7
R,N2S
2IT 2,T :F .1; 1MUNCH 94 '. MIL2Y B,R 95 '.5 'B,R4ONE 45 '.F5 4MIL2
CHOCOL,TE
F 1.9 5
"ccording to the above analysis it is concluded that in Nestle Arand, 2unch is the most
preferred subEbrand as it is ran#ed first by the respondents. Bhile 2il# Chocolate is the
least preferred subEbrand of Cadbury chocolates.
0$e& =9& How $ch (.or%!nce do yo$ /(ve %o %he fo''ow(n/ f!c%or#
when yo$ .$rch!#e ! choco'!%e
INFLUENCIN1 F,CTORS DURIN1 PURCH,SE
OVER,LL INFLUENCE
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T!5'e *=9
F,CTORS 1R,ND TOT,L ,VER,1E R,N2
FL,VORT,STE 45 4.5; 1PRICE '5 .1
0U,LITY 1 4.1' 'P,C2,1IN1 44 .9' 4FORM F1 .1: :BR,ND 54 .: IM,1E 44 .9' 4COLOR ': .1 ;SH,PE '9; '.;' 1F0U,NTITY 4' .9 9
"ccording to the above analysis it is concluded that on an average mostly people are
influenced by flavor3taste followed by $uality, brand and image. It is surprised to #now
that very few people are influenced by price followed by shape of the chocolate.
0$e& ==& Ah(ch f!c%or# (nff'$nc(n/ of %he con#$er d$r(n/ .$rch!#e of
c!d5ery choco'!%e ,nd /(ve %he r!n"
INFLUENCIN1 F,CTORS DURIN1 PURCH,SE OF C,DBURY
CHOCOL,TES
T!5'e*==
F,CTORS 1R,ND TOT,L ,VER,1E R,N2
FL,VORT,STE 5 4.9 1PRICE '5 .' :0U,LITY F: 4.' 'P,C2,1IN1 ':: .: FORM '1 .19 ;BR,ND ':1 .:1 4IM,1E '9' .5 5COLOR ''4 .F:
:F
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SH,PE '1 '.' 1F0U,NTITY '9' .5 5
"ccording to the above analysis it is concluded that on an average mostly people are
influenced by flavor3taste followed by $uality, pac#aging and brand. )ere color and
shape are not all influencing people while purchasing Cadbury chocolates.
0$e& =<& Ah(ch f!c%or# (nf'$c(n/ of %he con#$er# d$r(n/ .$rch!#e of
ne#%'e choco'!%e /(ve %he r!n"
INFLUENCIN1 F,CTORS DURIN1 PURCH,SE OF NESTLE
CHOCOL,TES
T!5'e*=<
F,CTORS 1R,ND TOT,L ,VER,1E R,N2
FL,VORT,STE 1FF 4.5 1PRICE 9F '.:' 50U,LITY ;4 .;' 'P,C2,1IN1 9: .F4 FORM :F .1; ;BR,ND ; .:: IM,1E ;' .: 4COLOR : .' :SH,PE 55 '.5 1F0U,NTITY ;F .94 9
:1
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"ccording to the above analysis it is concluded that on an average mostly people are
influenced by flavor3taste followed by $uality, brand and image. )ere pac#aging and
shape are not all influencing people while purchasing Nestle chocolates.
0$e& =3& How $ch !re %he con#$er# #!%(#f(ed w(%h %he f!c%or# (n %he(r
.refered choco'!%e > /(ve %he r!n"
F,CTORS 1IVIN1 MOST S,TISF,CTION TO CONSUMERS
OVER,LL
T!5'e*=3
F,CTORS 1R,ND TOT,L ,VER,1E R,N2
FL,VORT,STE 4': 4.;1 1PRICE : .9 40U,LITY 9: .;9 'P,C2,1IN1 ; .59 5FORM ' .4 :BR,ND 5; .:: IM,1E '; .45 COLOR ' .4 :SH,PE 5 .5' 90U,NTITY '; .45
"ccording to the above analysis it is concluded that on an average people are most
satisfied with the flavor3taste of a chocolate followed by $uality and brand. It is
surprising to #now that although people are satisfied with $uality but unsatisfied with the
$uantity.
0$e& =3& How $ch !re %he con#$er# #!%(#f(ed w(%h %he (n .refrence of
C!d5$ry Choco'!%e
:'
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IN C,DBURY CHOCOL,TE
T!5'e*=8
F,CTORS 1R,ND TOT,L ,VER,1E R,N2
FL,VORT,STE 4 4.9 1PRICE '9 .9; 50U,LITY ';' .;9 'P,C2,1IN1 ':' .: 4FORM '94 .9' 9BR,ND ';' .;9 'IM,1E '4: .; 1FCOLOR '5 .55 :SH,PE '5; .5 ;0U,NTITY '55 .4
"ccording to the above analysis it is concluded that on an average people are most
satisfied with the flavor3taste of a chocolate followed by $uality and brand. It is
surprising to #now that although people are satisfied with $uality but unsatisfied with the
$uantity and image.
0$e& =8& How $ch !re %he con#$er# #!%(#f(ed w(%h %he (n .refrence of
Ne#%'e Choco'!%e
IN NESTLE CHOCOL,TE
T!5'e*=
F,CTORS 1R,ND TOT,L ,VER,1E R,N2
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FL,VORT,STE 4.' 1PRICE 9; .F ;0U,LITY ;5 .;9 'P,C2,1IN1 99 1FFORM 9; .F ;
BR,ND :9 .45 5IM,1E ;1 .9; COLOR : .' 9SH,PE :: .5 40U,NTITY : .' 9
"ccording to the above analysis it is concluded that on an average people are most
satisfied with the flavor3taste of a chocolate followed by $uality and image. It is
surprising to #now that although people are satisfied with $uality but unsatisfied with the
form and pac#aging.
0$e& =& Ah!% for of choco'!%e do con#$er '("e
FORM PREFERENCE
T!5'e*=@
FORM OF CHOCOL,TE NUMBER OF
RESONDENTS
H,RD NUTTIES '5
CRUNCHY 'CHEA 'F
:4
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Form of a Chocolate Prefere' b) People
(&(%
('
'
,'
('
'
)'
,Forms
N u m b e
r o f
C o n s u m
e r s ;A27
N4TTIES624N6;-
6;E<
Ch!r%*?
"ccording to the above analysis it is concluded that most of the people li#es to eat hard
chocolate and chew form of a chocolate is least preferred.
0$e& =@& Ah!% .!c" do re#.onden% .$rch!#e
P,C2 OF CHOCOL,TES PREFERED
T!5'e*=
P,C2 SIGE NUMBER OF RESPONDENTS
SM,LL ';BI1 4;F,MILY P,C2 1
:5
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(+
)+
,%
'
,'
('
.')'
&'
*'
,
N u m b e r o f C o n s u m e r s
Pack
Pack of Chocolate Prefere'
S9ALL8I1
=A9IL- 5A6K
Ch!r%*
"ccording to the above analysis it is concluded that out of sample of 5 people who eat
chocolates li#es to buy big pac#. ?amily pac# is mostly preferred by aged people only.
0$e& =& Ah(ch .roo%(on!' offer# !%%r!c% re#.onden% o#%
PROMOTION,L OFFERS
T!5'e*=?
PROMOTION,L OFFERS NUMBER OF RESPONDENTSFREE 1IFTS 5'PRICE OFFER ',NY OTHER 'F
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Effect of Promotional Offers +hile
Purchase
&(
(. ('
'
,'
('
.'
)'
&'
*'
,Promotional Offers N u m b e r o f C o n s u m
e r s
=2EE 1I=TS
52I6E 3==E2
AN- 3T;E2
Ch!r%* =9
"ccording to the above analysis it is concluded that out of sample of 5 people who eat
chocolate 5' are attracted by free gifts, ' by price offers while 'F were attracted by
some other reasons.
0$e& =?& Ah(ch of %he#e f!c%or# !%%r!c% of re#.onden% .$rch!#e
F,CTORS ,FFECTIN1 PURCH,SE
T!5'e*=
F,CTORS NUMBER OF
RESPONDENTS
,DVERTISEMENT 95SU11ESTION FROM FRIENDS ,ND
REL,TIVES
19
,TTR,CTIVE DISPL,Y 11DOCTORS ,DVICE 15
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BR,ND ,MB,SS,DORS IN1REDIENTS '5
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Factors Affecting Purchase
*&
,* ,, ,&%
(&
'
('
)'*'
+'
,Factors
N u m b e r o f C o n s
u m e r s
A7>E2TISE9ENT
S411ESTI3N
=239 =2IEN7S
AN7 2ELATI>ES ATT2A6TI>E
7IS5LA-
736T32$S
A7>I6E
82AN7
A98ASS732S
IN12E7IENTS
Ch!r%* ==
"ccording to the above analysis it is concluded that "dvertisement is the best measure to
attract customers to purchase more. Its impact is much more than other factors. Bhile
friends and relatives and brand ambassadors also play a significant role in this regard.
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0$e& =& Ah(ch ed(! of !dver%(#een% (nf'$ence of re#.onden%
.$rch!#e
MEDI, OF ,DVERTISEMENT
MEDI, OF ,DVERTISEMENT NUMBER OF RESPONDENTS
TELEVISION ;'NEASP,PERS :BROCHURES HO,RDIN1 4DISPL,Y 15
+(
0 . ),&
'
('
)'
*'
+'
,''
,
N u m b e r o f C u s t o m e r s
"e'ia Of A',ertising
"e'ia of A',ertisement influencing the Purchase
Television
Newspapers
8rochers
;oarding
7isplay
Ch!r%*=<
"ccording to the above analysis it is concluded that television emerges as the best media
for advertisement of chocolates that compel consumers to buy. It is much more than other
ways as out of 5 respondents ;' are attracted to by through television media while
brochures are the least attracting media.
0$e& <9& How fre$en%'y do re#.onden% .$rch!#e choco'!%e
;F
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FRE0UENCY OF CONSUMPTION
T!5'e*<=
FRE0UENCY OF CONSUMPTION NUMBER OF RESPONDENTS
ONCE IN , FORTNI1HT 19D,ILY 1:AEE2LY MONTHLY 1;0U,RTERLY 5
Fre-uenc) of Consumption
,* ,0
%
,+
&
'
,'
('
'
)'&'
,Fre-uenc)
N u m b e r o f
C o n s u m e r s 3nce in a
fortnight7aily
<ee#ly
9onthly
?uarterly
Ch!r%*=3
"ccording to the above analysis it is concluded that mostly people purchase chocolates
wee#ly. 6nly 15 out of 5 purchase chocolates $uarterly.
0$e& <=& Ah!% !/e %o re#.onden%# (# %he re!#on!5'e .r(ce of choco'!%e
RE,SON,BLE PRICE
T!5'e*<<
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PRICE OF CHOCOL,TE NUMBER OF RESPONDENTS
BELOA 94=9 '=94<9 51<9439 4
,BOVE 39 11
Reasonable Price
*
(
&,
)
,,
','
('')'&'*'
,Price
N u m b e r o f
C
o n s u m e r s
8elow&
& to ,'
,' to ('
(' to '
A"ove '
Ch!r%* =8
"ccording to the above analysis it is concluded that the consumer thin#s 1FE'F Qs is the
reasonable price of a chocolate. (o it must be worthwhile to #now this as it may effect thesale of chocolates.
0$e& <<& If re#.onden%+# .referred 5r!nd (# no% !v!('!5'e for re.e!%
.$rch!#e %h!n wh!% w('' re#.onden% do
CONSUMER+S BR,ND LOY,LTY
T!5'e*<3
BR,ND LOY,LTY ,CTIONS NUMBER OF RESPONDENTS
POSTPONE YOUR PURCH,SE '9SAITCH OVER TO OTHER BR,NDS '41O TO OTHER SHOP FOR SE,RCH
OF PREFERED BR,ND
45
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#ran' Lo)alt)
(* ()
)&
'
,'
('
.')'
&'
,Action of Consumers in
absence of Prefere' #ran'
N u m b e r o f c o n s u m e r
5ostpone 5urchase
Switch 8rand
Search in other
Shop
Ch!r%*=
"ccording to the above analysis it is concluded that mostly people are loyal to the brand
as in the absence of availability of their preferred brand mostly people li#e to search for it
or they are ready to postpone their purchase.
0$e& <3& If !no%her 5r!nd of %he #!e .rod$c% !..e!r# (n %he !r"e%
%hen wh!% w('' %he re!c%(on of %he re#.onden%
RE,CTION OF CONSUMERS IF NEA BR,ND IS INTRODUCED
T!5'e*<8
SHIFT TO NEA BR,ND OF THE
PREFERED PRODUCT
NUMBER OF RESPONDENTS
NO NOT ,T ,LL 5M,Y CONSIDER ':NO SH,LL NOT 4
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C,N+T S,Y '
Reaction of consumers if ne+ bran'
is intro'uce'
.&
(0
)
(%
'
,'
('
.'
)'
, Reactions
N
u m b e r o f C o n s u m e r s
No@ Not at all
9ay 6onsider
Shall Not
6an$t Say
Ch!r%*=@
"ccording 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 5 respondents 5 are not
ready to try new brand at any cost.
RE,SONS FOR NOT SAITCHIN1 OVER TO OTHER BR,NDS
"ll the consumers why they continue to buy the old brand gave various important
reasons. %he most important reasons given by the consumers were7
%aste3?lavor
;4
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Arand
Image
Kuality
Gac#aging
;5
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FINDIN1S
CONSUMER RESE,RCH* Consumer research deals with consumer and their
problems and solution to the problems. In this I came to #now about the consumers need
and e&pectation levels regarding products and ascertainable levels of consumer
satisfaction.
PRODUCT RESE,RCH* nder product research I came to #now about the
modification which consumers wants as to the $uality, pac#ing, shape, color, and $uantity
etc of their favorite chocolate.
PRICIN1 RESE,RCH* %his includes ability to consume, to pay for the product, how
much a person can spend on his3her favorite chocolate. In this I have tried to find out
consumer+s price e&pectations and reactions.
,DVERTISIN1 RESE,RCH* nder this I have concluded that whether the
advertisement appeals the consumers or not. %his also includes evaluating and selecting
the proper mediaEmi& and measuring advertising effectiveness.
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CONCLUSION
" survey of the people has been conducted to #now the li#ing pattern of
the two products Cadbury and Nestle. It is observed that overall people li#e to eat
Cadbury brand rather than Nestle. It is concluded that mostly people preferred
Dairy 2il# of Cadbury due to its flavor3taste, $uality and image and due to its
hard form. (ome people often li#e to have a chocolate with good flavor, $uality
and crunchiness so they are going towards it at and 2unch of Nestle due to its
taste and crunchiness.
It is thus concluded from the facts collected that mostly people refer to
buy big pac# of their favorite chocolate, and sometimes some of them go for
small and family pac#.
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SU11ESTIONS
Company should concentrate more on television for advertisement, as mostly
people get attracted through television only.
?or promotional offers, company should go for free gifts rather than going for
other ways.
Nestle company should concentrate on its pac#ing as people are least satisfied
with it while Cadbury should concentrate on the shape of a chocolate.
Geople are unsatisfied with the price and $uantity of chocolate so companies
should concentrate in this regard also.
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0UESTIONN,IRE
PROJECT REPORT ON CONSUMER PREFERENCETOA,RDS NESTLE ,ND
C,DBURY CHOCOL,TES
Kue1. Do you eat chocolateO
Ses No
Kue'. Bhich brand of chocolate do you preferO
Cadbury Nestle
Kue. Bhich subEbrand you have purchasedO
Cadbury Nestle
Dairy 2il# it at
5(tar 2unch
Ger# 2il#y Aar
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Celebrations AarE6ne
%emptation 2il# Chocolate
Kue4. Qan# the subEbrands of chocolates according to your preferenceO -1 for most
preferred/
Cadbury Nestle
Dairy 2il# it at
5(tar 2unch
Ger# 2il#y Aar
Celebrations AarE6ne
%emptation 2il# Chocolate
Kue5. )ow much importance do you give to the following factors when you purchase a
chocolateO -%ic# in the desired column/
4
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?actors Mery
Important
Important Normal Heast
Important
None
?lavor3tasteGrice
KualityGac#aging?ormArandImageColor (hapeKuantity
Kue9. )ow much are you satisfied with the following factors in your preferred
chocolateO -%ic# in the desired column/
?actors Mery
(atisfied
(atisfied Normal Heast
(atisfied
Can+t (ay
?lavor3tasteGriceKualityGac#aging?orm
ArandImageColor (hapeKuantity
Kue:. Bhich form of a chocolate do you li#eO
)ard Nutties
Crunchy Chew
Kue;. Bhat pac# do you purchaseO
5
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(mall Aig ?amily Gac#
Kue. Bhich promotional offers attract you mostO
?ree gifts Grice 6ffer "ny other
Kue1F.Bhich of these factors affect your purchaseO
"dvertisement
(uggestion from friends and relatives
"ttractive Display
Doctors "dvice
Arand "mbassadors
Ingredients
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Kue11. Bhich media of advertisement influence your purchaseO
%elevision Newspapers Arochures
)oarding Display
Kue1'. )ow fre$uently do you purchase chocolatesO
6nce in a fortnight Daily
Bee#ly 2onthly
Kuarterly
Kue1. Bhat according to you is the reasonable price of chocolateO
Aelow5 5E1F 1FE'F
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Kue14. If your preferred brand is not available for repeat purchase then what will you doO
Gostpone your purchase
(witch over to other brand
*o to the other shop to search for your preferred brand
:
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Kue15. If another brand of the same product appears in the mar#et, will you prefer to stop
buying this brand and buy the new brandO
No, not at all I may consider
No, I shall not can+t say
Kue19. If you don+t li#e to change to the new brand, then what are the reasons for
continuing to purchase the old brandO
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BIBLIO1R,PHY
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BIBLIO1R,HY
http733www.cadburyindia.com
http733www.nestle.com
http733www.aphroditeEchocolates.co.u#3historyUchocolate.htm
http733www.google.com
http733www.cadbury.co.n@3carnival3inde&.htm
http733www.pac#agingEtechnology.com3V3cadbury4.html
http733www.chocolatereview.co.u#
http733en.wi#ipedia.org3wi#i3preference
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