Preface

An Industrial, Business or service organization by taking up a project study is most important part of our M.B.A course & is must as per the syllabus prescribed by aurashtra !niversity. "ur MBA course is of administrative and managerial activity of industrial, Business or service organization. #he main objective of this project study is to help the student to develop ability of research of the products and practical techni$ue to solve real life problem related to the products. According to the rules, I have taken my grand project report in and guidance of nestle to me. #he grand project programmed for student of M.B.A am+iv training is near about t*o months. #heoretically kno*ledge and class room discussion is not that much sufficient for the student, but training give them practical and day to day *orking of ,estle In this grand project report I had tried to analyze the needs of the customers and suggest them the most suitable product solutions. As *ell as I also analyzed the brand a*areness among the people. %&''(I

)I #&IB!#"& at junagadh. "ur gardeners and professors gives the kno*ledge

ACKNOWLEDGEMENT
'very piece of hard *ork re$uires the combined efforts and talents of many people. An ambitious *ork of this kind, providing analytical revie* to the subject *ould have remained a concept rather than the finished product *ithout cooperation of those *ho respondent to our re$uest to contribute. %o*ever, I alone is responsible for any shortcomings remained in this report. I am very much graceful to our respected .rof. )r. ,.M. /%A,)'01AA02)irector3 &/ 4ollege of Business Management *ho has enriched my kno*ledge and gave me a moral support to do this report. I am also highly thankful to him for sho*ing the right path and encouraging me for the preparation of this report. I am very much thankful to Mr. ,ilesh achaniya & Mr. 5ipul &ancch for allo*ing me

to take training in a reputed ,estle )istributor kno*s as 6 %&''(I )I #&IB!#"& 7.

I am very much thankful to Mr. ,ailesh 0imbasiya, 20ecturer of &./. 4ollege of Business Management3, the project *ork presented in this report is carried out under supervision and guidance of Mr. ,ailesh 0imbasiya. 0ast but not least, I am thankful to my entire staff member *ho have helped us directly or indirectly in preparing this report.

INDEX &. ,". 4",#AI, I,)! #&: "5'&5I'1 .A9' ,". ;

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Industry Overview

IND !T"# O$E"$IEW

%ist&ry &f c'&c&(ate) #he origin of chocolate can be traced back to the ancient Maya and Aztec civilizations in 4entral America, *ho first enjoyed CchocolatiD a much+prized spicy drink made from roasted cocoa beans. #hroughout its history, *hether as cocoa or drinking chocolate beverage or confectionary treat, chocolate has been a much sought after food. T'e A*tec e+,ire C4hocolateD2in the form of a luEury drink3 *as consumed in large $uantities by the aztecsF the drink *as described as C finely ground, soft, foamy, reddish, bitter *ith chilli *ater, aromatic flo*ers, vanilla and *ild bee honey. #he dry climate meant the Aztecs *ere unable to gro* cocoa trees, and had to obtain supplies of cocoa beans from C tributeD or trade D&n C&rtes #he panish invaded MeEico in the -A th century, by this time the Aztecs had created a po*erful empire, and the 1hen he returned to panish armies con$uered MeEico. )on 4ortes *as made captain general and governor of MeEico. pain in-@8G he loaded his galleons *ith cocoa beans and e$uipment for making the chocolate drink. oon CchocolateD became a fashionable drink enjoyed by the rich in pain. C'&c&(ate acr&ss Eur&,e An Italian traveler, <rancesco carletti, *as the first to break the panish monopoly. %e had visited 4entral America and seen ho* the Indians prepared the cocoa beans and ho* they made the drink, and by -AHA chocolate *as *ell established in Italy.

Drin-in. c'&c&(ate #he secret of chocolate *as taken to <rance in -A-@, *hen Anne, daughter of .hillip 8 of pain married king 0ouis -? of <rance #he <rench court enthusiastically adopted this ne* eEotic drink, *hich *as considered to have medicinal benefits as *ell as being a nourishing food. 9radually the custom of drinking chocolate spread across 'urope, reaching 'ngland in the -A@H7s /irst c'&c&(ate f&r eatin. !p until this point all chocolate recipes *ere based on plain chocolate. It *as an 'nglish doctor, sir %ans7s loane, *ho+ after traveling in south America+ focused on cocoa and food values, bringing a milk chocolate recipe back to 'ngland. #he original 4adbury milk chocolate *as prepared to his recipe. %ist&ry) #he earliest record of chocolate *as over fifteen hundred years ago in the central America rain forests, *here the tropical miE of high rain fall combined *ith high year round temperatures and humidity provide the ideal climate for cultivation of the plant from *hich chocolate is derived, the cacao tree. C 4hocolate is made from the cocoa bean, found in pods gro*ing from the trunk and lo*er branches of the cacao tree, 0atin name C theobroma cacaoD meaning C food of the godsD 4acao *as corrupted into the more familiar C cocoaD by the early 'uropean eEplorers. #he Maya bre*ed a spicy, bitters*eet drink by roasting and pounding the seeds of the cacao tree *ith maize and capsicum peppers and letting the miEture ferment. #his drink *as reserved for use in ceremonies as *ell as for drinking by the *ealthy and religious eliteI they also ate cacao porridge. #he Aztecs, like the Mayans, also enjoyed cacao as a beverage fermented from the ra* beans, *hich again featured prominently in ritual and as a luEury available only to the very *ealthy. #he Aztecs called this drink Eocolatl, the panish con$uistadors found this

almost impossible to pronounce and so corrupted it to the easier C chocolatD the 'nglish further changed this to chocolate. #he Aztec7s regarded chocolate as an aphrodisiac and their emperor, Montezuma reputedly drank it fifty times a day from a golden goblet and is $uoted as saying of EocolatlF C the divine drink, *hich builds up resistance and fights fatigue. A cup of this precious drink permits a man to *alk for a *hole day *ithout foodD C'&c&(ate in Eur&,e BocolatlJ or chocolat or chocolate as it became kno*n, *as brought to 'urope by 4ortez, by this time the con$uistadors had learned to make the drink more palatable to 'uropean tastes by miEing the ground roasted beans *ith sugar and vanilla 2 a practice still continued today3, thus offsetting the spicy bitterness of the bre* the Aztec7s drank. #he first chocolate factories opened in pain, *here the dried fermented beans brought back from the ne* *orld by the panish treasure fleets *ere roasted and ground, and by the early ->th century chocolate po*der K from *hich the 'uropean version of the drink *as made+ *as being eEported to other parts of 'urope. #he panish kept the source of the drink+ the beans+ a secret for many years, so successfully in fact, that *hen 'nglish buccaneers boarded *hat they thought *as a panish C treasurer galleonD in -@>L, only to find it loaded *ith *hat appeared to be C dried sheep7s droppings, they burned the *hole ship in frustration. If only they had kno*n, chocolate *as so eEpensive at that time, that it *as *orth it7s *eight in silver 2 if not gold3, chocolate *as treasure indeed J 1ithin a fe* years, the cocoa beverage made from the po*der produced in pain had become popular throughout 'urope, in the panish ,etherlands, Italy, <rance, 9ermany and K in about -@8H K it arrived in 'ngland. #he first chocolate house in 'ngland opened in 0ondon in -A@> follo*ed rapidly by many others. 0ike the already *ell established coffee houses, they *ere used as clubs *here the *ealthy and business community met to smoke a clay pipe of tobacco, conduct business and socialize over a cup of chocolate. >

0ac- t& t'e A+erica1s 'vent7s *ent full circle *hen 'nglish colonists carried chocolate 2and coffee3 *ith them to 'ngland7s colonies in north America. )estined to become the united states of America and 4anada, they are no* the *orlds largest consumers K by far K of both chocolate and coffee, consuming over half of the *ords total production of chocolate alone. T'e 2ua-ers #he Muakers *ere, and still are, a pacifist religious sect, an offshoot of the puritans of 'nglish civil *ar and pilgrim fathers fame and a history of chocolate *ould not be complete *ithout mentioning their part in it. ome of the most famous names in chocolate *ere Muakers, *ho for centuries held a virtual monopoly of chocolate making in the 'nglish speaking *orld K fry, 4adbury and ro* tree are probably the best kno*n. Its probably before the time of the 'nglish civil *ar bet*een parliament and king 4harles -st that the Muaker7s *ho evolved from the puritans, first began their historic association *ith chocolate. Because of their pacifist religion, they *ere prohibited from many normal business activities, so as an industrious people *ith a strong belief in the *ork ethic 2like the puritans3, they involved themselves in food related businesses and did very *ell. Baking *as a common occupation for them because bread *as regarded as the biblical Cstaff of lifeD, and bakers in 'ngland *ere the first to add chocolate to cakes so it *ould be a natural progression for them to start making pure chocolate. #hey *ere also heavily involved in breakfast cereals but that7s another story. 1hat is certain is that the fry, ro* tree and 4adbury families in 'ngland among others, began chocolate making and in fact (oseph fry of fry &sons 2founded ->8G in Bristol, 'ngland3 is credited *ith producing and selling the *orld7s first chocolate bar. <ry7s have no* all but disappeared 2taken over by 4adbury3 and ro* tree have merged *iss company nestle, to form the largest chocolate manufacturer in the *orld. 4adbury have stayed *ith chocolate production and are no*, if not $uite the largest, probably one of the best+kno*n chocolate makers in the *orld.

C'&c&(ate as we -n&w it #he first mention of chocolate being eaten in solid form is *hen bakers in 'ngland began adding cocoa po*der to cakes in the mid -AHH7s. #hen in -G8G a )utch chemist, (ohannes van houten, invented a method of eEtracting the bitter tasting fat or Ccocoa butterD from the roasted ground beans, his aim *as to make the drink smoother and more palatable, ho*ever he unkno*ingly paved the *ay for solid chocolate as *e kno* it. 4hocolate as *e kno* it today first appeared in -G;> *hen fry & sons of Bristol, 'ngland K miEed sugar *ith cocoa po*der and cocoa butter 2made by the van houten process3 to produce the first solid chocolate bar then in-G>@ a *iss manufacturer, )aniel peters, found a *ay to combine 2some *ould say improve, some *ould say ruin3 cocoa po*der and cocoa butter *ith sugar and dried milk po*der to produce the first milk chocolate.

C%OCOLATE P"OD CTION #he cocoa+bean ++ the heart of the s*eetest delicacy in the *orld ++ is bitterJ #his is *hy, up to the -Gth century some native tribes ate only the s*eetish flesh of the cocoa fruit. #hey regarded the precious bean as *aste or used it, as *as the case among the Aztecs, as a form of currency. T'e$arieties #here are t*o $uite different basic classifications of cocoa, under *hich practically all varieties can be categorisedF 4riollo and <orastero cocoas. #he pure variety of the 4riollo tree is found mainly in its native '$uador and 5enezuela. #he seeds are of finer $uality than those of the <orastero variety. #hey have a particularly fine, mild aroma and are, therefore, used only in the production of high+$uality chocolate and for blending. %o*ever, 4riollo cocoa accounts for only -HN of the *orld crop. #he remaining LHN is harvested from trees of the <orastero family, *ith its many hybrids and varieties. #he main gro*ing area is 1est Africa. #he cocoa tree can flourish only in the hottest regions of the *orld. T'e %arvest 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. /er+entati&n #he fermentation process is decisive in the production of high $uality ra* cocoa. #he techni$ue varies depending on the gro*ing region. Dryin. After fermentation, the ra* cocoa still contains far too much *aterI in fact about AHN. Most of this has to be removed. -H

1hat could be more natural than to spread the beans out to dry on the sun+soaked ground or on matsO After a *eek or so, all but a small percentage of the *ater has evaporated. C(eanin. Before the real processing begins, the ra* cocoa is thoroughly cleaned by passing through sieves, and by brushing. <inally, the last vestiges of *ood, jute fibres, sand and even the finest dust are eEtracted by po*erful vacuum e$uipment. "&astin. #he subse$uent roasting process is primarily designed to develop the aroma. #he entire roasting process, during *hich the air in the nearly -H feet high furnaces reaches a temperature of -?H P4, is carried out automatically. Crus'in. and s'e((in. #he roasted beans are no* broken into medium sized pieces in the crushing machine. 0(endin. Before grinding, the crushed beans are *eighed and blended according to special recipes. #he secret of every chocolate factory lies in the special miEing ratios, *hich it has developed for different types of cocoa. Grindin. #he crushed cocoa beans, *hich are still fairly coarse are no* pre+ground by special milling e$uipment and then fed on to rollers *here they are ground into a fine paste. #he heat generated by the resulting pressure and friction causes the cocoa butter 2approEimately @HN of the bean3 contained in the beans to melt, producing a thick, li$uid miEture. #his is dark bro*n in color *ith a characteristic, strong odour. )uring cooling it gradually setsF this is the cocoa paste. --

At this point the production process divides into t*o paths, but *hich soon join again. A part of the cocoa paste is taken to large presses, *hich eEtract the cocoa butter. #he other part passes through various blending and refining processes, during *hich some of the cocoa butter is added to it. #he t*o paths have rejoined. C&c&a0utter #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 glaze. C&c&a P&wder After the cocoa butter has left the pressI cocoa cakes are left *hich still contain a -H to 8HN proportion of fat depending on the intensity of compression. #hese cakes are crushed again, ground to po*der and finely sifted in several stages and *e obtain a dark, strongly aromatic po*der, *hich is eEcellent for the preparation of delicious drinks + cocoa. 4ocoa paste, cocoa butter, sugar and milk are the four basic ingredients for making chocolate. By blending them in accordance *ith specific recipes the three types of chocolate are obtained *hich form the basis of ever product assortment, namelyF Kneadin. In the case of milk chocolate for eEample, the cocoa paste, cocoa butter, po*dered or condensed milk, sugar and flavouring + maybe vanilla + go into the miEer, *here they are pulverized and kneaded. "&((in. )epending 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 do*n to a size of approE. ?H microns. 2"ne micron is a thousandth part of a millimetre.3 -8

C&nc'in. But still the chocolate paste is not smooth enough to satisfy our palates. But *ithin t*o or three days all that *ill have been put right. <or during this period the chocolate paste *ill be refined to such an eEtent in the conches that it *ill flatter even the most discriminating palate. 4onches 2from the panish *ord Qconch aQ, meaning a shell3 is the name given to the troughs in *hich -HH to -HHH kilograms of chocolate paste at a time can be heated up to GH P4 and, *hile being constantly stirred, is given a velvet smoothness by the addition of certain amounts of cocoa butter. A kind of aeration of the li$uid chocolate paste then takes place in the conchesF 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, *hich gives it its reputation.

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CON! MPTION O/ C%OCOLATE! IN INDIA 4hocolate consumption in India is eEtremely lo*. .er capita consumption is around -AH gms in the urban areas, compared to G+-Hkg in the developed countries. In rural areas, it is even lo*er. 4hocolates in India are consumed as indulgence and not as a snack food. A strong volume gro*th *as *itnessed in the early LH7s *hen 4adbury repositioned chocolates from children to adult consumption. #he biggest opportunity is likely to stem from increasing the consumer base. 0eading players like 4adbury and ,estle have been attempting to do this by value for money offerings, *hich are affordable to the masses.

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Overview &f Or.ani*ati&ns

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O$E"$IEW O/ O"GANI3ATION!

NE!TLE
Nest(e India
,estle7 India is a subsidiary of ,estle7 .A. of *itzerland. #he company insists on honesty, integrity and fairness in all aspects of its business and eEpects the same in its relationships.

Nest(e India4 Presence Acr&ss India

Beginning *ith its first investment in Moga in -LA-, ,estlR7s regular and substantial investments established that it *as here to stay. In -LA>, ,estlR set up its neEt factory at 4holadi 2#amil ,adu3 as a pilot plant to process the tea gro*n in the area into soluble tea. #he ,anjangud factory 2/arnataka3, became operational in -LGL, the amalkha factory 2%aryana3, in -LL? and in -LL@ and -LL>, ,estlR commissioned t*o factories in 9oa at .onda and Bicholim respectively. ,estlR India is no* putting up the >th factory at .ant ,agar in !ttaranchal.

-A

Nest(e1 !t&ry
,estlR *as founded in -GA> on the shores of 0ake 9eneva in 5evey, *itzerland and its first product *as C<arine 0actRe ,estlRD, an infant cereal specially formulated by %enri ,estlR to provide and improve infant nutrition. <rom its first historic merger *ith the Anglo+ *iss 4ondensed Milk 4ompany in -LH@, ,estlR has gro*n to become the *orld7s largest and most diversified food 4ompany, and is about t*ice the size of its nearest competitor in the food and beverage sector. ,estlR7s trademark of birds in a nest, derived from %enri ,estlR7s personal coat of arms, evokes the values upon *hich he founded his 4ompany. ,amely, the values of security, maternity and affection, nature and nourishment, family and tradition. #oday, it is not only the central element of ,estlR7s corporate identity but serves to define the 4ompany7s products, responsibilities, business practices, ethics and goals. In 8HH;, ,estlR had around 8;>,HHH employees *orld*ide, operated @HH factories in approE. -HH countries and offered over G,HHH products to millions of consumers universally. #he 4ompany7s 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. ,estlR7s activities contribute to and nurture the sustainable economic development of people, communities and nations. Above all, ,estlR is dedicated to bringing the joy of 69ood <ood, 9ood 0ife7 to people throughout their lives, throughout the *orld.

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Nest(e1 0rands
Milk .roducts & ,utrition Beverages .repared )ishes and 4ooking Aids 4hocolates & 4onfectionary MILK P"OD CT! AND N T"ITION)

,' #0' '5'&:)A: )airy 1inter ,' #0' '5'&:)A: lim ,' #0'7 '5'&#)A: 9hee ,' #0'7 MI0/ MAI) ,' #0'7 <resh and ,atural )ahi ,' #0'7 (eera &ita ,' #0'7 MI0/MAI) <ruit :oghurt ,' #0S Milk ,' #0S lim Milk

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0E$E"AGE!) ,' 4A<S 40A ,' 4A<S I4

!,&I '

,' #0S MI0" ,' 4A<S ? I, ,' 4A<S /""0&'=

P"EPA"ED DI!%E! AND COOKING AID! MA99I 8+MI,!#' ,"")'0 MA99I 5'9'#AB0' A##A ,"")'0 MA99I )A0 A##A ,"")'0 MA99I &I4' ,"")'0 MAI, MA99I A!4'

MA99I .I==A MA==A MA99I %'A0#%: "!. MA99I +%'A0#%: "!. A,(''5,I

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MA99I MA9I4 4!B' C%OCOLATE! 5 CON/ECTIONA"# ,' #0S /I# /A# ,' #0S /I# /A# 0I#' ,' #0S M!,4% ,' #0S M!,4% .". 4%"4 ,' #0S MI0/: BA& ,' #0S BA&+ ",' ,' #0S <!,BA& ,' #0S MI0/ 4%"4"0A#' ."0" ."1'& MI,# ,' #0S '40AI&

8H

NE!TLEKITKAT

are crisp wafer fingers covered with choco layer. NESTL KIT KAT has a unique finger for at with a !"rea#ing$ ritual attached to it. ,' #0S /I# /A# is one of the most successful brands in the *orld and every year over -8 billion ,' #0S /I# /A# fingers are consumed around the globe. NE!TLE M NC%

,' #0S M!,4% is *afer layer covered *ith delicious choco layer. ,' #0S M!,4% is so crisp, light and irresistible that you just 6canTt stop Munching.T ,' #0S M!,4% is the largest selling /! in the categoryJ NE!TLE MILK# 0A")

,' #0S MI0/:BA& is a delicious milky treat, *hich kids love. &elaunched in (anuary 8HHA *ith a 4alcium &ich recipe, ,' #0S MI0/:BA& is a favorite *ith parents to treat their kids *ith. NE!TLE 0A"4ONE

is a luscious nougat and caramel *ith delicious choco layer. ,' #0S BA&+",' constantly reminds you that it is 6#ime for ActionT.

8-

NE!TLE Mi(- C'&c&(ate)

,' #0S Milk 4hocolate is a milk chocolate *ith a delicious taste. /ids just love itJ

88

CAD0 "#
%&w Cad6ury C'&c&(ate is +ade

(ohn 4adbury Milk chocolate for eating *as first made by 4adbury in -GL> by adding milk po*der (ohn paste to the dark chocolate recipe of cocoa mass, cocoa butter and sugar. By todayTs standards this chocolate *as not particularly goodF it *as coarse and dry and not s*eet or milky enough for public tastes. #here *as a great deal of competition from continental manufacturers, not only the <rench,but also the *iss, reno*ned for their milk chocolate. 0ed by 9eorge 4adbury (unior, the Bournville eEperts set out to meet the challenge. A considerable amount of time and money *as spent on research and on ne* plant designed to produce the chocolate in larger $uantities. A recipe *as formulated incorporating fresh milk, and production processes *ere developed to produce a milk chocolate Tnot merely as good as, but better thanT the imported milk chocolateT. <our years of hard *ork *ere invested in the project and in -LH@ *hat *as to be 4adburyTs top selling brand *as launched. #hree names *ere consideredF (ersey, %ighland Milk and )airy Maid. )airy Maid became )airy Milk, and 4adburyTs )airy Milk, *ith its uni$ue flavour and smooth creamy teEture, *as ready to challenge the chocolate market. *iss domination of the milk

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By -L-? )airy Milk had become the companyTs best selling line and in the mid t*enties 4adburyTs )airy Milk gained its status as the brand leader, a position it has held ever since.

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COMPAN# O$E"$IEW O/ CAD0 "# INDIA

4adbury began its operations in -L;G by importing chocolates and then re+packing them before distribution in the Indian market. After @L years of eEistence, it today has five company+o*ned manufacturing facilities at #hane, Induri 2.une3 and Malanpur 29*alior3, Bangalore and Baddi 2%imachal .radesh3 and ; sales offices 2,e* )elhi, Mumbai, /olkota and 4hennai3. #he corporate office is in Mumbai.

4urrently 4adbury India operates in three sectors viz. 4hocolate 4onfectionery, Milk <ood )rinks and in the 4andy category. In the 4hocolate 4onfectionery business, 4adbury has maintained its undisputed leadership over the years. ome of the key brands are 4adbury )airy Milk, @ tar, .erk, Sclairs and 4elebrations. 4adbury enjoys a value market share of over >HN + the highest 4adbury brand share in the *orldJ #heir flagship brand 4adbury )airy Milk is considered the Qgold standardQ for chocolates in India. #he pure taste of 4)M defines the chocolate taste for the Indian consumer.

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In the Milk <ood drinks segment their main product is Bournvita + the leading Malted <ood )rink 2M<)3 in the country. imilarly in the medicated candy category %alls is the undisputed leader. #he 4adbury India Brand trategy has received consistent support through simple but imaginative eEtensions to product categories and distribution. A good eEample of this is the development of Bytes. 4rispy *afers filled *ith coca cream in the form of a bagged snack, Bytes is positioned as Q#he ne* concept of s*eet snackingQ. It delivers the taste of chocolate in the form of a light snack, and thus heralds the entry of 4adbury India into the gro*ing bagged nack Market, *hich has been dominated until no* by alted Bagged nack Brands. Bytes *as first launched in outh India in 8HH?. ince -LA@ 4adbury has also pioneered the development of cocoa cultivation in India. <or over t*o decades, it has *orked *ith the /erala Agriculture !niversity to undertake cocoa research and released clones, hybrids that improve the cocoa yield. #oday, 4adbury is poised in its leap to*ards $uantum gro*th and ne* categories of business, namely gums, mints, snacking and gifting. It is a part of the 4adbury ch*eppes 9roup, *orldTs ,o.- 4onfectionery 4ompany.

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CAD0 "# WO"LD WIDE

4adbury is the *orldTs largest confectionery company and have a strong regional presence in beverages in the Americas and Australia. 1ith origins stretching back over 8HH years, today their products + *hich include brands such as 4adbury, ch*eppes, %alls, #rident, )r .epper, napple, #rebor, )entyne, Bubblicious and Bassett + are enjoyed in almost every country around the *orld. 1e employ around AH,HH people. #heir heritage starts back in ->G? *hen (acob ch*eppe perfected his process for manufacturing carbonated mineral *ater in 9eneva, *itzerland. And in -G8; (ohn 4adbury opened in Birmingham selling cocoa and chocolate. #hese t*o great household names merged in -LAL to form 4adbury ch*eppes plc. ince then they have eEpanded their business throughout the *orld by a programme of organic and ac$uisition led gro*th. 4oncentrating on their core brands in beverages and confectionery since the -LGHs, they have strengthened their portfolio through almost fifty ac$uisitions, including brand icons such as MottTs, 4anada )ry, %alls, #rident, )entyne, Bubblicious, #rebor, Bassett, )r .epper, > !p and napple. + + + + It employ AH,HHH people in over 8HH countries 1orlds ,o - 4onfectionery company 1orldTs ,o 8 9ums company 1orldTs ,o ? beverage company

Cad6ury 0rands)
4hocolates 8>

nacks

Beverages 4andy !NACK!) Bytes 0E$E"AGE! Bournvita CAND# %alls

C%OCOLATE! )airy Milk @ tar .erk 4elebrations #emptation 'clairs 9ems

8G

DAI"# MILK

#he story of 4adbury )airy Milk started *ay back in -LH@ at Bournville, !./., but the journey *ith chocolate lovers in India began in -L;G. #he variants <ruit & ,ut, 4rackle and &oast Almond, combine the classic taste of 4adbury )airy Milk *ith a variety of ingredients and are very popular amongst teens & adults. 4adbury )airy Milk has eEciting products on offer + 4adbury )airy Milk 1o*ie, chocolate *ith )isney characters embossed in it, and 4adbury )airy Milk 8 in -, a delightful combination of milk chocolate and *hite chocolate. 9iving consumers an eEciting reason to keep coming back into the fun filled *orld of 4adbury. #oday, 4adbury )airy Milk alone holds ?HN value share of the Indian chocolate market. 7 !TA"

the second largest after 4adbury )airy Milk *ith a market share of -;N, 4adbury @ tar moves from strength to strength every year by increasing its user base.

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0aunched in -LAL as a bar of chocolate that *as hard outside *ith soft caramel nougat inside, 4adbury @ tar has re+invented itself over the years to keep satisfying the consumers taste for a high $uality & different chocolate eating eEperience. "ne of the key properties that 4adbury @ tar *as associated *ith *as its classic 9old colour. And through the passage of time, this *as 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 4adbury @ tar fold, 4adbury @ tar 4runchy *as launched. #he same delicious 4adbury @ tar *as no* available *ith a dash of rice crispies. PE"K

4adbury launched .erk in -LLA. 1ith its light chocolate and *afer construct, 4adbury .erk targeted the casual snacking space that *as dominated primarily by chips & *afers. 1ith the rise of more value+for+money brands in the *afer chocolate segment, 4adbury .erk unveiled t*o ne* offerings + .erk B0 and BB0. In 8HH;, *ith an added dose of T&eal 4adbury )airy MilkT and an Timproved *aferT, .erk became even more irresistible

CELE0"ATION!

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4adbury 4elebrations *as aimed at replacing traditional gifting options like Mithai and dry+ fruits during festive seasons. 4adbury 4elebrations is available in several assortmentsF An assortment of chocolates like @ tar, .erk, 9ems, )airy Milk and ,utties and rich dry fruits enrobed in 4adbury dairy milk chocolate in @ variants, Almond magic, raisin magic, cashe* magic, nut butterscotch and caramels. #he super premium 4elebrations &ich )ry <ruit 4ollection *hich is a festive offering is an eEotic range of chocolate covered dry fruits and nuts in various flavours and the premium dark chocolate range *hich is eEotic dark chocolate in luscious flavours. TEMPTATION

'ver see people hide a*ay their chocolate since they don7t *ant to share itJ If you have, then its likely to be a bar of 4adbury #emptationsJ 4adbury #emptations is a range of delicious premium chocolate in five flavours. &esearch revealed a niche segment of C chocoholicsD + those eEposed to international possibly lovers. ?#emptations chocolates the and those *ho love a variety of chocolates of international chocolates too high. but find price 4adbury

is a range targeted at this segment of discerning chocolate

#he 4adbury #emptations range is available in @ delicious flavour variants + &oast Almond 4offee, %oney Apricot, Mint 4runch, Black <orest and "ld (amaica. 1ith its international $uality chocolate #emptations soon became a popular brand for QchocoholicsQ.

?8

"E!EA"C% MET%ODOLOG#

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"E!EA"C% MET%ODOLOG# !". NO. PA"TIC LA"!

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8. "e(evance &f t'e !tudy #his research is been conducted to survey the product performance and buying behavior of consumer in selection of chocolates. #he relevance of the study is to survey the product performance and buying behavior of t*o famous brands of chocolates K ,estle and 4adbury, *hich are consumed by people of all ages. )uring this research I have interacted *ith people of (unagadh 4ity. #his research is to kno* *hich particular brand of chocolate is most preferred by people of different age groups.

9. "esearc' Pr&6(e+ 'very research has their o*n problem and limitation but good researcher have to overcome that problem by their skill. In this research problem I *ould like to understand and analyze about the chocolates products available at (unagadh and collect the feedback from group of people and I *anted to kno* the developments made in direction of chocolates industry.

:. O6;ective &f t'e study #his project is based on the comparative study consumer behavior to*ards ,estle and 4adbury chocolates. "bjectives of the study areF #he other objective is to kno* about the customer satisfaction level associated *ith the product and the customer preference level. #o increase customer satisfaction and recapture the market share by fulfilling the customer needs. #o study the factors affecting the consumption pattern. <. "esearc' Desi.n <or any researcher the research methodology is the most important criteria to decide before the actual research process starts. ?@

#here are many methods for conducting the research some of them are as underI a3 )escriptive vs. Analytical b3 Applied vs. <undamental c3 Muantitative vs. Mualitative d3 4onceptual vs. 'mpirical e3 <ield setting or laboratory testing research #he design of a research is a plan or a model that helps researcher to conduct a formal investigation and survey. It is an application of methods and procedures for ac$uiring the information needs for getting a desire out come. It decides the sources of data and methods for gathering data. A good design insures that the information obtained is relevant to the research $uestion and that it *as collected by objectives. ince, research design is simply the frame *ork or plan for a study. It is a blue print that of a house devised by an architect. My approach to research is descriptive and $uite specific. "ut of these all research methods the research method, *hich *as most suitable to my research, *as descriptive research because it provides me all the opportunities to cover the all the aspect that I re$uire to conduct the research and get an appropriate out come. Descri,tive "esearc') Descriptive research includes surveys and fact finding enquires of different kinds. The major purpose of descriptive research is description of the state of affairs as it exits at present. In social science and business research we often use the term Ex post facto research for descriptive research studies. The main characteristic of this method is that the researcher has no control over the variables he can only report what has happened or what is happening. 7. !c&,e &f t'e !tudy) As learning is a human activity and is as natural, as breathing. )espite of the fact that learning is all pervasive in our lives, psychologists do not agree on ho* learning takes place. %o* individuals learn is a matter of interest to marketers. #hey *ant to teach consumers in their roles as their roles as consumers. #hey *ant consumers to learn about their products, product attributes, potential consumers benefit, ho* to use, maintain or

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even dispose of the product and ne* *ays of behaving that *ill satisfy not only the consumer7s needs, but the marketer7s objectives. #he scope of my study restricts itself to the analysis of consumer preferences, perception and consumption of 4adbury and ,estle 4hocolates. #here are many other brands of chocolates available but my study is limited to t*o major players of chocolates leaving behind the others. #he scope of my study is also restricts itself to junagadh region only. #here are 8 sources of data i.e. A= Pri+ary Data #he data, *hich are collected for the first time, directly from the respondents to the base of kno*ledge & belief of the research, are called primary data. #he normal procedure is to intervie* some people individually or in a group to get a sense of ho* people feel about the topic. o far as this research is concerned, primary data is the main source of information provided by the respondents. 0= !ec&ndary Data 1hen the data is collected and compiled in the in a published nature it is called econdary data. o far as this research is concerned internet, many brochures and magazines have been referred too.

7. DATA COLLECTION

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a= !AMPLING DE!IGN It is true that it is very difficult to do research *ith *hole universe. As *e kno* that it is not feasible to go *ith population survey because of the numerous )octors and their scattered location. o for this purpose sample size has to be determined *ell in advanced and selection of the sample also has to be scientific so that it represents the *hole universe. o far as this research is concerned, the sample size is -HH. 6= IN!T" MENT #aking into consideration research instrument selected by me is $uestionnaire because it gives more fleEibility in terms of data and it has been asked to the responder personally and have an idea of getting an important unkno*n data that can be collected through their behavior.

c= MODE O/ DATA COLLECTION

)ata collection mode is personal visit and filling up of the $uestionnaire.

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In attempt to make this project authentic and reliable, every possible aspect of the topic *as kept in mind. ,evertheless, despite of fact constraints *ere at play during the formulation of this project. #he main limitations are as follo*sF )ue to limitation of time only fe* people *ere selected for the study. o the sample of consumers *as not enough to generalize the findings of the study. #he main source of data for the study *as primary data *ith the help of self+ administered $uestionnaires. %ence, the chances of unbiased information are less. .eople *ere hesitant to disclose the true facts. #he chance of biased response can7t be eliminated though all necessary steps *ere taken to avoid the same.

DATA ANAL#!I!

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2ue8. D& y&u eat c'&c&(ateA

Anay(sis 5 inter,retati&n) 4hocolate is a product *hich is like by the all age group of people. Accourding to the survey G?N of people says yes they eat chocolate and ->N say no they are not eating chocolate. May be the reason behind that is they are not eating chocolate on daily or *eakly basis or may be they are eating any other brand of chocolate. 2ue9. W'ic' 6rand &f c'&c&(ate d& y&u ,referA

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Ana(ysis 5 Inter,retati&n) #here are many brands available in the market. But the market leaders in India are basically t*o brands like 4adbury & ,estle. According to survey A;N of the market is captured by the 4adbury and only ?AN of the market is covered by the ,estle. #o capture the market the company should do more advertising and sales distribution. And also should maintain $uality of the product compare to the competitors. 2ue:. W'ic' su646rand y&u 'ave ,urc'asedA

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Ana(ysis 5 Inter,retati&n) In this survey nestle is having five sub+brands like kitkat, Munch, Milkybar, Barone,milk chocolates and their consumption are like kitkat -8N ,munch 8H ,milky bar -N ,bare one 8N ,and milk chocolate -N. And if *e talk about 4adbury the sub+brand of the 4adbury is dairymilk, @ star, perk, celebration and #emptation and their consumption are like dairymilk ;HN, @ star--N, perkLN, celebration-N and #emptation ?N. According to the survey the highest selling product is 4adbury. 2ue<. "an- t'e su646rands &f c'&c&(ates acc&rdin. t& y&ur ,referenceA B8 f&r +&st ,referred= NE!TLE

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Ana(ysis 5 Inter,retati&n In this survey I found that the most selling product is Munch the sub+brand of ,estle the Munch has capture the @HN of the market as compared to the 4adbury product the highest selling product of 4adbury is )airy milk *hich captured the market stake of ?HN *hich is as compared to Much 8HNless *hich is a good sigh for ,estle and the less consumption of the ,estle product is Milk bar & Milk 4hocolate the market share is only ?N and in 4adbury less selling product are 4elebration and #emptation the reason behind this is they are too 4ostly to consume. And it can only use occasionally.

2ue7. %&w +uc' i+,&rtance d& y&u .ive t& t'e f&((&win. fact&rs w'en y&u ,urc'ase a c'&c&(ateA BTic- in t'e desired c&(u+n=

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Ana(ysis 5 Inter,retai&n) 1henever *e are consuming any food product our main focus in on the $uality and price in India there is more concentrating on the $uality of product rather than other parameters of the product in this survey I found that the basic concentration of the consumer is on taste GGN says that they purchase if they like the taste of the product. LAN says if normal price *ould be there a taste is good than price dose not matter. >GN of the consumer says that if they are getting best $uality product at nominal price than

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the packaging is least important. >GN says that they are mainly seeing the $uality of the product if the product is $ualitative than they are ready to pay any price for that product. 2ue@. W'ic' f&r+ &f a c'&c&(ate d& y&u (i-eA

Ana(ysis 5 inter,retati&n) 'very person have there o*n taste and preferences to*ards the eatable product in chocolates there are four varieties available in the market among this ;>N of the consumer like hard chocolates, 8LN of the consumer like crunchy chocolates, -GN of the consumer like nutties chocolates & only AN of the consumer like 4he* chocolates.

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2ueC. W'at ,ac- d& y&u ,urc'aseA

Ana(ysis 5 Inter,retati&n) #he chocolates are available in the market in different packaging like small, big, & family pack, from the survey *e 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 >?N are using small pack, ->N are using big pack of the chocolates, -HN are consuming family pack because of there high price. o *e can easily see that the consumption of small pack is having boom in the market compare to other packaging. 2ueD. W'ic' ,r&+&ti&na( &ffers attract y&u +&stA

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Ana(ysis 5 Inter,retati&n) #o 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 -8N are giving the free gift offer 2scratch the card scheme3, G;N are directly giving the price offer, and ;N giving the any other kind of scheme.s 2ueE.W'ic' &f t'ese fact&rs affects y&ur ,urc'aseA

FACTORS AFFECTING PURCHASE

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Ana(ysis 5 Inter,retati&n) #here are many factors affecting at the time of purchase. o company is doing promotional activities to ac$uire the desired target of the product. Basically there are siE main type of the promotional activities like ALN of the advertisement, -N of the suggestions, 8N of the attractive display, HNof the doctors advice, 8-N of the companies are using Brand Ambassadors in there advertisement, >N of the ingredients. o all this factors are affecting the purchase. 2ue8?. W'ic' +edia &f advertise+ent inf(uence y&ur ,urc'aseA

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INFLUENCING MEDIA

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Ana(ysis 5 Inter,retati&n) In today7s competitive market advertisement is the main tool for selling the product because every single person is *atching or reading the advertisement. o it become easy to make people a*are about the product. o companies are using advertisement media like A>N of the television adds, >N of the %oardings, ?N of the advertisement given on local as *ell as national ne*spapers, & 8?N are using display adds. 2ue88. If y&ur ,referred 6rand is n&t avai(a6(e f&r re,eat ,urc'ases t'en w'at wi(( y&u d&A

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Ana(ysis 5 Inter,retati&n) 'very person is having there o*n taste & preferences. ome consumer are compromising *ith there taste and preferences and some are not according to the survey --N of the consumer are postponing the purchase of the product, ;H N of the consumer are s*itch over to any other product, & ;L N *ill search the product at any other place they don7t compromise for the same.

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<rom the one and half month eEperience of my research project *ith %&''(I

)I #&IB!#"& "< ,' #0' A# (!,A9A)%. I have come to kno* lot things and it has enhanced my kno*ledge to great eEtent. I found many things *hich are *ell eEecuted by distributors. %ere are some of the key findings given by me are purely based on my research. It doesn7t have any kind of bias from my side. #hey are given as under. By doing the comparison of ,estle and 4adbury chocolates I have found that the preference of the chocolates more preferred by the consumer is 4adbury <rom the analysis I have found that nestle some brand has covered @HN of the market in one product 2Munch3 of the chocolates *hich is a very good sign for the company. #hrough the research I found that consumer is very conscious about the $uality of the product in that matter they are not ready to compromise. And I found both company product are very $ualitative. In some cases I found that if a product is not available in the market than some consumer *ould to s*itchover to another product or brand. o from these survey I have found that the consumption of the chocolates are more in children and teenage group though having any occasion or not having any occasion. #he most selling product of both the company are in small size of chocolates and there market is >?N because its not much costlier. And also easily available & affordable.

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!u..esti&ns

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! GGE!TION! 4hocolates products at (unagadh city are available in comparison to previous years, but still there is re$uirement of development in 4hocolate products. %&''(I )I #&IB!#'& is regarded to be the best service distributors according to &etailer. )ue to increasing overall cost in 4hocolate .roducts every*here, cost format should be made as such that it is affordable to each and everyone in the society. In this I also found that if the demanded brand is not available, so at that time the customers s*itch over the brand of the chocolate so, here the company should build up the healthy distribution channel by *hich company can attract the customers and company loose the fear from the market.

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"eferences

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"E/E"ENCE!

We6 sites)
***.nestle.com ***.nestle.inchocoinfo.com ***.nestle bar+one.com www."usiness<standard.co www."a"y il#action.org

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2 E!TIONNAI"E
.'& ",A0 )'#AI0 ,ameF AddressF AgeF Bet*een H+-H Bet*een 8H+?H 9enderF .hone U Mob. F .rofessionF Mue-. )o you eat chocolateO :es ,o Bet*een-H+8H Above ?H

Mue8. 1hich brand of chocolate do you preferO 4adbury ,estle Mue?. 1hich sub+brand you have purchasedO 4adbury )airy Milk @ tar .erk 4elebrations #emptation ,estle /it /at Munch Milky Bar Bar+"ne Milk 4hocolate

Mue;. &ank the sub+brands of chocolates according to your preferenceO 2- for most preferred3 4adbury ,estle )airy Milk @ tar .erk 4elebrations #emptation /it /at Munch Milky Bar Bar+"ne Milk 4hocolate

Mue@. %o* much importance do you give to the follo*ing factors *hen you purchase a chocolateO 2#ick in the desired column3 @>

<actors <lavorUtaste .rice Muality .ackaging

5ery Important

Important

,ormal

0east Important

MueA. 1hich form of a chocolate do you likeO %ard 4runchy ,utties 4he*

Mue>. 1hat pack do you purchaseO mall Big <amily .ack

MueG. 1hich promotional offers attract you mostO <ree gifts .rice "ffer Any other

MueL.1hich of these factors affects your purchaseO Advertisement uggestion from friends and relatives Attractive )isplay )octors Advice Brand Ambassadors Ingredients

Mue-H. 1hich media of advertisement influence your purchaseO #elevision %oarding ,e*spapers )isplay Brochures

Mue--. If your preferred brand is not available for repeat purchases then *hat *ill you doO .ostpone your purchase *itch over to other brand 9o to the other shop to search for your preferred brand

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