Nestle Report
Nestle Report
Nestle Report
“Analysis of the buying pattern of Cadbury chocolate in the market with respect to its
competitors”
The Cadbury‟s INS has taken the opportunity to offer as a broader view of chocolate
Cadbury. The Cadbury‟s “India‟s no.1 chocolate, is able to share their market inside based
unparalleled breath of chocolate experience. Cadbury has gone from strength to strength with
new technologies being introduced to make the Cadbury confectionary business, one of the
most efficient in the world. This report studies about buying behavior of consumers in case of
chocolates.
1
DECLARATION
I under signed Aman Singh, student of BBDU LUCKNOW studying in BBA hereby declare
that the project work represented in this report is my own work and has been created by me
under the supervision of our guide and lecturer Pankhuri Shrivastava of BBDU LUCKNOW.
This report has not been submitted to any other university for any examination.
DATE: signature
Place
TABLE OF CONENT
Serial no index Page No.
02
Acknowledgement 03
Executive Summary S. NO.
Declaration
1 Chapter-01: Introduction 07-12
Introduction 08
Chocolate production 19- 11
Consumption of chocolate in India 11
Chocolate 12
2 Chapter-02 Introduction of company profile 13-41
Industry profile Nestle Kit Kat & Cadbury 14-27
History of chocolate 28-29
History of Kit Kat 29-30
Ingredients 31
Global confection 32-33
Design 33-36
History of Cadbury 37-38
Ingredients 38-40
Design 41
3 Chapter-03 Objective of the study 42-43
Objectives 43
4 Chapter-04 Research methodology 44-46
Research methodology 45
Method of data collection 45
Data source 45
Sample design 45
Sample type 46
Sample size 46
Statistical tools to be used 46
Data analysis 46
5 Chapter-05 Limitation of the study 47-48
6 Chapter:06 Analysis of the study 49-64
7 Chapter:07 Swat analysis of the study 65-66
8 Chapter:08 Suggestions/Recommendations 67-68
9 Chapter:09 Conclusion 69-70
17 Chapter: 10 Bibliography 71-72
18 Chapter:11 Appendix 73-75
CHAPTER: 1
INTRODUCTION OF THE
STUDY
INTRODUCTION
hocolate production
The cocoa- bean -- the heart of the sw eetes t delicac y in the world -- is
bitter! This is why, up to the 18th century some native tribes ate only the sw eetis h flesh of the
cocoa fruit. The yregarded the precious bean as waste or used it, as was the case
among the Aztecs, as a form of currency.
The varieties
There are two quite different basic classifications of cocoa, under which
practically all varieties can be categorized : Criollo and Forastero cocoas. The pure variety
of the Criollo tree is found mainly in its native Equador and Venezuela. The seeds are of
finer quality than those of the Forastero variety. They have a particularly fine, mild aroma
and are, therefore, used only in the production of high-quality chocolate and for blending.
However, Criollo cocoa accounts for only 10 % of the world crop. The
remaining 90 % is harves ted from trees of the F oras tero family, with its many
hybrids and varieties. The main growing area is West Africa. The cocoa tree can flourish only
in the hottest regions of the world.
The Harvest
Immediately after harvesting, the fruit is treated to prevent it from rotting. At
fermentation sites either in the plantation or at, collecting point s, the fruit is opened.
Fermentation
The fermentation process is decisive in the production of high quality raw
cocoa. The technique varies depending on the growing region.
Drying
After fermentation, the raw cocoa still contains far too much water; in fact
about 60%.Most of this has to be removed. What could be more natural than to spread the
beans out to dry on the sun-soaked groundor on mats? After a week or so, all but a small
percentage of the water has evaporated.
Cleaning
Before the real processing begins, the raw cocoa is thoroughly cleaned by passing
through sieves , and by brushing . Finally , the last vestiges o f wood, jute fibres,
sand and even the finest dust are extracted by powerful vacuum equipment.
Roasting
His subsequent roasting process is primarily designed to develop the
aroma. The entire roasting process , during which the air in then early10
feet high furnace reaches temperature of 130 °C, is carried out automatically.
Crushing and shelling
The roasted beans are now broken into medium sized pieces in the crushing
machine.
Blending
Before grinding, the crushed beans are weighed and blended according to special
recipes. T h e secret of every chocolate factory lies in the special mixing ratios ,
whichithas developed for different types of cocoa.
Cocoa Butter
The cocoa butter has important functions. It not only forms part of every
recipe , but italso later gives the chocolateits fine structure , beautiful luster and
delicate, attractive glaze.
Kneading
In the case of milk chocolate for example , t h e cocoa paste , cocoa butter
, powdered or condensed milk, sugar and flavouring - maybe vanilla - go into the mixer,
where they are pulverized and kneaded.
Grinding
The crushed cocoa beans, which are still fairly coarse are now pre -
ground by special milling equipment and then fed on to rollers where they are ground into
A fine paste
Cocoa Powder
After the coca butter has lef t the press ; cocoa cakes are left which
Still containa 10 to 20% proportion of fat depending on the intensity of compression.
Conching
But still the chocolate paste is not smooth enough to satisfy our palates .
But within two or three days all that will have been put right . For during his
period the chocolate paste will be refined to suchan extent in the conches that it
will flatter even the most discriminating palate.
Conches ( from the Span i s h word " concha " , Meaning a shell ) i s t he n a
m e given t o t h e troughs in which 100 to 10 00 kilograms of chocolate pasteata
time can beheated up to 80 °C and, while being constantly stirred, is given velvet
smoothness by the addition of certain amounts of cocoa butter .
A k i n d o f aeration of the liquid chocolate paste then takes place in the conches
: its bitter taste gradual ly disappears and the flavor is fully developed. The chocolate
no longer seems sandy, but dissolves meltingly on the tongue. It has attained the outstanding
purity, which gives it its reputation.
Chocolates! Chocolates!
NESTLE KITKAT
Kit Kat is a chocolate-covered wafer bar confection created by Row trees of York, United
Kingdom, trademarked the term Kit Cat and Kit Kat.
The names were not used immediately and Kit Kat first appeared in 1920‟s when Row tree‟s
lunched a brand of boxed chocolate entitled Kit Cat. This continued into the 1930‟s when
Row trees shifted focus and production onto its Black magic and Dairy box brands
.”A man could take to work in his pack” the bar launched on 29 august 1935, under the title
of Row trees chocolate crisp (priced at 2D), and was sold in London and throughout southern
England.
Row trees chocolate crisp was renamed Kit Kat chocolate crisp in 1937 the same year that
Kit Kat began to incorporate “Break” into its recognizable advertising strategy.
The colure scheme and first flavor variation to the brand came in 1942, owing to World War
II when food shortages prompted an alteration in recipe.
In June 1988, Swiss company Nestle acquired Kit Kat through the purchase of Row trees,
giving Nestle global control over the brand.
And closed it in 2006 with the exception of the United States where it is made under license
by H.B. Reese Candy Company, A division of Hershey Company.
The Hershey Company has a license to produce Kit Kat bars in the United States which dates
from 1970; When Hershey executed a licensing agreement with Row trees which allowed
Hershey to retain the Kit Kat license so long as Hershey was not sold.
The standard bars consist of two or four pieces composed of three layer of chocolate. Each
finger can be snapped from the bar separately.
There are many different flavors of Kit Kat including Milk, White and Dark Chocolate.
Nestle India- presence across India
Beginning with its first investment in Moga in 1961,
Nestle‟ regular and substantial investment established that it was here to stay. In 1967,
Nestle‟ set up its next factory at Choladi (Tamil Nadu) as a pilot plant to process the tea
grown in the area into soluble tea. The Nanjangud factory (Karnataka), became operational in
1989, the Samalkha factory (Haryana), in 1993 and in 1995 and 1997, Nestle‟ commissioned
two factories in Goa at ponda and Bicholim respectively. Nestle‟ India is now putting up the
7th factory at Pant Nagar in Uttaranchal.
Nestle’ Brands
Milk product and Nutrition
Beverages
Prepared Dishes and cooking Aids
Chocolate & Confectionary
Milk Products and Nutrition
Nestle‟ everyday Dairy Whitener
Nestle everyday slim
Nestle everyday Ghee
Nestle Milkmaid
Nestle Fresh „n‟ Natural Dahi
Nestle Fresh „n‟ Natural slim Dahi
Nestle Jeera Raita
Nestle Milkmaid fruit Yoghurt
Nestle Milk
Beverages
Nestle Classic
Nescafe Sunrise
Nestle Milo
Nescafe 3 in 1
Nescafe Koolerz
John Cadbury
Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder
John paste to the dark chocolate recipe of cocoa mass, cocoa butter and sugar. By today‟s
standards this chocolate was not particularly good: it was coarse and dry and not sweet or
milky enough for public tastes.
There was a great deal of competition from continental manufactures, not only the French,
but also the Swiss, renowned for their milk chocolate. Led by George Cadbury junior, the
Bourneville expert set out to meet out the challenges.
A considerable amount of time and money was spent on research on new plant designed to
product the chocolate in larger quantities.
A recipe was formulated incorporating fresh milk, and production process were developed to
produce a milk chocolate „not merely as good as, but better than‟ the imported milk
chocolate. Four years of hard work were invested in the project and in the 1905what was to
be Cadbury‟s top selling brand was launched.
Three names were considered: Jersey, Highland Milk and Dairy Maid. Dairy Maid became
Dairy Milk and Cadbury Dairy Milk, with its unique flavor and smooth creamy texture, was
ready to challenge the Swiss domination of the milk chocolate market.
By 1913Dairy Milk had became the company‟s bestselling, line and in the mid twenties
Cadbury‟s Dairy Milk gained its status as the brand leader, a position it has held ever since.
OVERVIEW OF CADBURY INDIA COMPANY
Cadbury began its operation in 1948 by importing chocolate and then re-packaging them
before distribution in Indian market. After 59 years of existence, it‟s today has five company
owned manufacturing facilities at Thane, Induri (PUNE) and Malanpur (GWALIOR) ,
Bangalore and Baddi (HIMACHAL PRADESH) and 4 sales offices (New Delhi, Mumbai,
Kolkata And Chennai). The corporate office is in Mumbai.
Currently Cadbury India operates in three sector viz. chocolate confectioneries, Milk, Food,
Drinks and in the candy category. In the confectionery business, Cadbury has maintained its
undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, 5 Star,
Perk, Eclairs and Celebrations.
Cadbury enjoys a value market share of over 70% the highest Cadbury brand share in the
world! Their flagship brand Cadbury Dairy Milk is considered the “Gold Standard” for
chocolate in India.
Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For
over two decades, it has worked with the Kerala Agriculture University of undertake cocoa
research and released clones, hybrids that improve the cocoa yield.
Today Cadbury is poised in its leap toward quantum growth and new categories of business,
namely gums, mints, snacking and gifting. It is a part of the Cadbury
Schweppes group, world no. 1 Confectionery Company.
CADBURY WORLD WIDE
Cadbury id the world‟s largest confectionery company and have a strong regional presence in
beverages in the Americas and Australia. With origins stretching back over 20 years, today
their products which include brand such as:
Cadbury, Schweppes, Halls, Trident, Dr. Pepper, Snapple, Trebor, Dentyne, Bubblicious and
Bassett- are enjoyed in almost every country around the world. We employ around 60,000
people.
Their heritage start back in 1783 when Jacob Schweppe perfects his process for
manufacturing carbonated mineral water in Geneva, Switzerland. And in 1824 John Cadbury
opened in Birmingham selling cocoa and chocolate. These two household names merged in
1969 to form Cadbury Schweppes plc. Since then they have expended their business
throughout the world by a program of organic and acquisition led growth.
Concentrating on their core brands in beverages of confectionery since the 1980s, they have
strengthened their portfolio through almost 50 acquisition including brand icons such as
Mott‟s, Canada Dry, Halls Trident, Dentyne, Bubblicious, Trebor, Bassett, Dr. Pepper, 7up
and Snapple.
- It employ 60,000 people in over 200countries
- World‟s no. 1 confectionery
- World‟s no. 2 Gums company
- World‟s no 3 beverages company
Cadbury Dairy Milk has been the market leader in the chocolate
category for years. And has participated and been a part of every Indian's
moments of happiness, joy and celebration. Today, Cadbury Dairy Milk alone holds
30% value share of the Indian chocolate market.
In the early 90's , chocolates were seen as ' meant for kids' , usually a r e
w a r d o r a b r i b e f o r children. In the Mid 90's the category was re-
defined by the very popular `Real Taste of Life' campaign, shifting the
focus from `just for kids' to the `kid in all of us'. It appealed to the child in every
adult. And Cadbury Dairy Milk became the perfect expression of 'spontaneity' and
'shared good feelings.
In the late 90 's, to further expand the category, the focus shifted
towards widening chocolate consumption amongst the masses, through
the 'Khanewalon Ko Khane Ka Bahana Chahiye' campaign. This campaign
built social acceptance for chocolate consumption amongst adults, by showcasing
collective and shared moments.
More recently , the ' Kuch Meetha Ho Jaaye ' campaignas so ciated Cadbury
Dairy Milk with celebratory occasions and the phrase "Pappu Pass Ho
Gaya" became part of street language. It has been adopted by consumers
and today is used extensively to express joy in a moment of achievement
/ success.
The Pappu Pass Ho Gaya Campaign also went on to winsilver for the best integrated
marketing. Campaign and Gold in the Consumer Products category at the EFFIES
2006 (global benchmark for effective advertising campaigns) awards.
Did You Know?
Cadbury Dairy Milk emerged as the No. 1 most trusted brand in Mumbai for the 2005 edition
of Brand Equity's Most Trusted Brands survey. During the 1st World War, Cadbury
Dairy Milk supported the war effort. Over 2,000 male employees joined the armed
forces and Cadbury sent books, warm clothes and chocolates to the front.
Chocolates
Dairy Milk
5 star
Perk
Celebrations
Temptation
Eclairs
Gems
Cadbury brands
Chocolates
Snacks
Beverages
Candy
Snacks
Bytes
Beverages
Bournvita
Candy
Halls
Dairy Milk
The story of Cadbury dairy milk started way back in 1905 at Bournville, U.K., but
the journey of chocolates in India began in 1948.
The variants fruits and nuts, Crackle and Roast, Almond, combine the classic taste of
Cadbury dairy milk with a verity of ingredient and a very popular amongst teens & adults.
Today Cadbury dairy milk alone holds 30% value share of the Indian chocolate market.
5Star
The second largest after Cadbury dairy milk with a market share of 14% Cadbury
5star moves from the strength to strength every year by increasing its user base.
Launched in 1969 as a bar of chocolate that was hard outside with soft caramel nougat inside,
Cadbury 5star has re- invented itself over the years to keep satisfying the consumer taste for a
high quality and different chocolate eating experience.
Perk
Cadbury launched Perk in 1996. With its light chocolate and wafer construct, Cadbury
perk targeted casual snacking space that was dominated primarily by chips and wafer. With
the rise of more value- for –money brands in the wafer chocolate segment, Cadbury perk
unveiled two new offering s – Perk XL and XXL. In 2004, with an add dose of „real Cadbury
Dairy Milk‟ and an „improve wafer‟ Perk became even more irresistible.
Celebrations
Cadbury Celebrations was aimed at replacing traditional gifting option like
Mithai and dry- fruits during festive seasons. Cadbury Celebrations is available in several
assortments: assortment of chocolate like 5star, Perk, Gems, Dairy Milk and Nutties and rich
dry fruits enrobed in Cadbury dairy milk chocolate in 5 variants, Almond magic, raisin
magic, cashew magic, nut butterscotch and caramels.
Temptation
Cadbury temptation is a range of delicious premium chocolate in a five flavors
variants- roast Almond coffee, Honey apricot, Mint crunch, Black forest and old Jamaica.
HISTORY OF CHOCOLATE
The origin of chocolate can be traced back to the ancient Maya and Aztec civilization in
Central America, who first enjoyed “chocolati” a much-prized spicy drink made from roasted
cocoa beans. Throughout its history, whether as cocoa or drinking chocolate beverage or
confectionary treat, chocolate has been a much sought after food.
The Aztec Empire
“Chocolate” (in the form of luxury drink) was consumed in large quantities
by the Aztecs: the drink was describe as ”finely ground, soft, foamy, reddish, bitter with chili
water, aromatic, flowers, vanilla and wild bee honey.
The dry climate meant the Aztecs were unable to grow cocoa trees, and had to obtain supplies
of cocoa beans from “tribute” or trade.
Don Cortes
The Spanish invaded Mexico in the 16th century, by this time the Aztecs had
created a powerful empire, and the Spanish armies conquered Mexico. Don Cortes was made
captain general and governor of Mexico.
When he returned to Spain in 1528he loaded his galleons with cocoa beans and equipment for
making the chocolate drink. Soon “chocolate” became a fashionable drink enjoyed by the rich
in Spain.
Chocolate across Spain
An Italian traveler, Francesco carletti, was the first to break the
Spanish monopoly. He had visited Central America and seen how the Indian prepared the
cocoa beans and how they made the drink, and by 1606 chocolate was well established in
Italy.
Drinking chocolate
The secret of chocolate was taken to French in 1615, when Anne,
daughter of Phillip 2 of Spain married king Louis 13 of French.
The French court enthusiastically adopted his new exotic drink, which was considered to
have medicinal benefits as well as being a nourishing food. Gradually the custom of drinking
chocolate spread across Europe, reaching England in the 1650‟s.
First chocolate for eating
Up until this point all chocolate recipes were based on plain
chocolate, it was an English doctor, Sir Hans‟s Sloane, who- after traveling south America-
focused on cocoa and food values, bringing a milk chocolate recipe back to England. The
original Cadbury milk chocolate was prepared to his recipe.
Rowntree's Chocolate Crisp was renamed Kit Kat Chocolate Crisp in 1937, the same year
that Kit Kat began to incorporate "Break" into its recognisable advertising strategy. The
colour scheme and first flavour variation to the brand came in 1942, owing to World War II,
when food shortages prompted an alteration in the recipe. The flavour of Kit Kat was
changed to dark chocolate; the packaging abandoned its Chocolate Crisp title, and was
coloured blue. After the war the name became Kit Kat, with the original milk chocolate
recipe and red packaging.
The brand further expanded in the 1970s when Rowntree created a new distribution factory
in Germany to meet European demand, and established agreements to distribute the brand in
the US through the Hershey Company, and in Japan through Fujiya.
In June 1988, Swiss company Nestlé acquired Kit Kat through the purchase of Rowntree's,
giving Nestlé global control over the brand, except in the US, and production and distribution
increased with new facilities in Japan and additional manufacturing operations set up in
Malaysia, India and China.
The Hershey Company has a licence to produce Kit Kat bars in the United States which dates
from 1970, when Hershey executed a licensing agreement with Rowntree which allowed
Hershey to retain the Kit Kat licence so long as Hershey was not sold.
Nestlé, which has a substantial presence in the US, had to honour the licensing agreement
when it bought Rowntree in 1988. As Kit Kat is one of Hershey's top five brands in the US
market, the Kit Kat licence was a key factor in Hershey's failed attempt to attract a serious
buyer in 2002.
Variants in the traditional chocolate bar first appeared in 1996 when Kit Kat Orange, the first
flavour variant, was introduced in the United Kingdom. Its success was followed by several
varieties including mint and caramel, and in 1999 Kit Kat Chunky was launched and received
favourably by international consumers. Variations on the traditional Kit Kat have continued
to be developed since then.
In 2000 Nestlé acquired Fujiya's share of the brand in Japan, and also expanded its
marketplace in Japan, Russia, Turkey, and Venezuela, in addition to markets in Eastern and
Central Europe. Throughout the decade Kit Kat introduced dozens of flavours and line
extensions within specific consumer markets. It celebrated its 75th anniversary on 10 October
2009.
The traditional bar has four fingers which each measure approximately 1 centimetre (0.4 in)
by 9 centimetres (3.5 in). A two-finger bar was launched in the 1930s, and has remained the
company's best-selling biscuit brand ever since. The 1999 Kit Kat Chunky (known as Big Kat
and Kit Kat Extra Crispy in the US) has one large finger approximately 2.5 centimetres (1 in)
wide.
Kit Kat bars contain varying numbers of fingers depending on the market, ranging from the
half-finger sized Kit Kat Petit in Japan, to the three-fingered variants in Arabia, and the
twelve-finger family-size bars in Australia and France. Kit Kat bars are sold individually and
in bags, boxes and multi-packs. In Ireland, France, the UK and America Nestlé also produces
a Kit Kat ice cream, and in Australia and Malaysia, Kit Kat Drumstick.
Ingredients
Original Kit Kat ingredients unless otherwise stated, listed by decreasing
weight: milk chocolate (sugar, milk ingredients, cocoa butter, cocoa mass, whey
powder, lactose, soya lecithin, polyglycerol polyricinoleate, natural flavour), wheat flour,
sugar, modified palm oil, cocoa, sodium bicarbonate, soya lecithin, yeast, and natural flavour.
Milk chocolate (sugar, modified milk ingredients, cocoa butter, cocoa mass, whey powder,
lactose, soya lecithin, polyglycerol polyricinoleate, natural flavour), wheat flour, sugar,
modified palm oil, cocoa, sodium bicarbonate, soya lecithin, yeast, Natural Flavour. Dark
chocolate (sugar, unsweetened chocolate, cocoa butter, milk ingredients, soya lecithin, salt,
artificial flavour), wheat flour, sugar, modified palm oil, unsweetened chocolate or cocoa
powder, sodium bicarbonate, soya lecithin, artificial flavour.
Europe
Milk chocolate (66%) (sugar, cocoa butter, cocoa mass, dried whole milk, cocoa
mass, lactose and proteins from whey, whey powder, emulsifier (sunflower lecithin),
butterfat, flavouring), wheat flour, sugar, vegetable fat, cocoa mass, yeast, raising agent
(sodium bicarbonate), salt, emulsifier (soya lecithin), flavourings.
In 2006, the UK four-finger Kit Kat contained 233 dietary calories (kcal) (975 kilojoules). In
2009, the two-finger Kit Kat contained 107 calories.
In 2013, the UK Kit Kat Chunky contained 247 calories which reduced to 207 calories in
2015. This correlated to a reduction in weight by 19% from 48 g to 40 g.
United States
Hershey's Kit Kat Crisp Wafers in Chocolate contain sugar, wheat flour, cocoa
butter, nonfat milk, chocolate, refined palm kernel oil, lactose (milk), milk fat, contains 2% or
less of: soy lecithin, (emulsifier), yeast, artificial flavor, salt, and sodium bicarbonate.
Asia
In Japan, Kit Kats are produced at Nestlé-owned factories in Himeji and Kasumigaura.
The milk chocolate used for Kit Kats is made from whole-milk powder and Nestlé buys most
of its cacao beans from West Africa.
Nestlé has factories in various locations in China, to supply to China and Hong Kong. During
the 2008 Chinese milk scandal, where melamine was found to have tainted some milk
suppliers in China, importers in Hong Kong chose to import bars manufactured in the United
Kingdom.
Global confection
Kit Kat bars are produced in 16 countries by Nestlé: Brazil, Mexico, United Kingdom,
Canada, Australia, New Zealand, South Africa, Germany, Russia, Japan, China, Malaysia,
Thailand, India, Turkey, United Arab Emirates, Bulgaria and Algeria. Kit Kat bars in the
United States are produced under licence by The Hershey Company, a Nestlé competitor, due
to a prior licensing agreement with Rowntree.
The year 2003 was a turning point for the Kit Kat bar as well as the confectionery industry in
general. The popularity of low carb diets and the push to healthier eating stifled sales growth
in many parts of the world.
In addition, fierce competition from Cadbury‟s newly formed Dairy Milk superbrand also
contributed to Kit Kat sales decreasing considerably in its home market of the UK, and
threatened to depose it from its No.1 position. The solution adopted by Nestlé and others was
to increase dramatically the number of new and unique variations of their confections and
market them as limited or special editions, usually only available for a few months at a time
so as not lose sales of their standard products.
The strategy initially reversed the decline of the Kit Kat and has been adopted worldwide by
Nestlé, Hershey, Mars, and others with similar success.
This has resulted in many new flavours and varieties of the Kit Kat and other confections
appearing globally since then. While some flavours succeeded, many failed, alienating some
consumers in the process, causing Nestlé to scale back on new releases.
In September 2006, Nestlé announced that they would be cutting 645 jobs in their York
factory and moving all Smarties production to their Hamburg factory, which had already been
producing two-thirds. They stated that this move would allow for a £20 million investment to
modernise the antiquated York factory and improve Kit Kat production.
As dark chocolate has seen increased demand and favour worldwide because of its purported
health benefits, in September 2006 the four-finger Kit Kat Fine Dark was launched in the
United Kingdom as a permanent product, and packaging for the entire brand was
changed. Hershey had sold the four-finger Kit Kat Dark in the US several years previously as
a limited edition, and began doing so again.
Nestlé now manufactures two-finger Kit Kats with natural flavourings, and for the first time,
Kit Kats in this format are suitable for vegans. It is not known at this date whether or not
other varieties will follow suit. In 2014, Kit Kat was ranked the third best selling chocolate
bar in the United Kingdom, after Dairy Milk.
Preference
(Or "taste") is a concept, used in the social sciences, particularly economics. It assumes a
real or imagined "choice" between alternatives and the possibility of rank ordering
of these alternatives, based on happiness, satisfaction, gratification, enjoyment, utility they
provide.
More generally, it can be seen as a source of motivation. In cognitive sciences, individual
preferences enable choice of objectives/goals. The study of the consumer preference not only
focuses on how and why consumers make buying decision, but also focuses on how
and why consumers make choice of the goods they buy and their evaluation of these
goods after use.
So for success of any company or product promotion it is very necessary to depart its
concentration towards consumer preference.
Design
When first introduced, the original Rowntree's Chocolate Crisp bar had a red wrapper,
which briefly became blue between1945–1947. As a result of milk shortages after the end of
World War II, dark chocolate was used instead of milk chocolate during that period.
Since its introduction in the 1970s, the Hershey's Kit Kat packaging and advertising in the
United States differed from the branding used in every other country where it was sold. In
2002, Hershey Kit Kats adopted the slanted ellipse logo used worldwide by Nestlé, though
the ellipse was red and the text white. The US version of "Kit Kat Chunky" is known as "Big
Kat".
In the United Kingdom, the product was traditionally wrapped in silver foil and an outer
paper band. In 2001 this was changed to flow wrapplastic. Foil and paper wrapping is still
used for Kit-Kats sold as part of a multipack.
Points of parity
1. Affordability
In comparison to other major brands, Kit Kat being lower in price is affordable to a wide
range of customers.
2. Milk / Dark / White Chocolate
Kit Kat‟s use of milk, dark and white chocolate variances in its products is a POP for the
brand as it is one of the features which helps Kit Kat target a range of different
consumers.
3. Lucrative packaging and variations
Kit Kat‟s two-stick and four-stick versions come in varying package sizes and types. For
the last couple of years, Nestle has been producing numerous limited editions for Kit
Kat, such as Kit Kat Chunky Peanut Butter and Kit Kat Green Tea Chocolate.
1. Wafer stick
Kit Kat team feels that the facts that wafer stick is one of the key PODs for the brand among
its chief competitors. Though M&M and Fererro-Rocher have versions that incorporate
wafer, they feel that being a chocolate wafer stick is a unique attribute for Kit Kat.
Kit Kat is often associated with the word “snack”, as opposed to others which are primarily
associated with being chocolates. Kit Kat was able to achieve the “snack” status as a result of
its highly recognized tagline “Have a Break, Have a Kit Kat”.
3. Uniqueness of taste
The main difference between Kit Kat and other competitors lies in the taste it holds, the
reason why Kit Kat is successfully holding a wide portion of the market worldwide for ages.
4. Ice-cream production
Unlike any other chocolate brands, Kit Kat produces Ice-creams keeping up with the same
great taste and satisfying ice-cream lovers as well.
5. Association with Android
Android 4.4 Kit Kat is an android operating system launched in collaboration with android
without any trade of cash. This is the first ever chocolate brand labeled for an android
operating system.
International Kit Kat logo
Markets World
Website kitkat.com
History of Cadbury
In June 1905 in Birmingham, England, Cadbury made its first Dairy Milk bar, with a higher
proportion of milk than previous chocolate bars, and it became the company's best-selling
product by 1914. George Cadbury Junior, responsible for the development of the bar, has said
"All sorts of names were suggested: Highland Milk, Jersey and Dairy Maid. But when a
customer‟s daughter suggested Dairy Milk, the name stuck.
“Fruit and Nut was introduced as part of the Dairy Milk line in 1926, soon followed by
Whole Nut in 1930. By this point, Cadbury's was the brand leader in the United Kingdom. In
1928, Cadbury's introduced the "glass and a half" slogan to accompany the Dairy Milk bar, to
advertise the bar's higher milk content.
In September 2012, Cadbury made the decision to change the shape of the bar chunks to a
more circular shape in order to reduce the weight. The bar had not seen such a significant
change in shape since 1905.
Since 2007 Cadbury had a trademark in the United Kingdom for the distinctive purple colour
(Pantone 2865C) of its chocolate bar wrappers, originally introduced in 1914 as a tribute
to Queen Victoria. In October 2013, however, an appeal by Nestlé succeeded in overturning
that court ruling. In July 2018, Cadbury announced it would launch a new Dairy Milk version
with 30% less sugar. The chief nutritionist of Public Health England, Dr Alison Tedstone,
said she was "pleased that Mondelez is the latest … name" to offer "healthier" products.
The original Dairy Milk bar ("with a glass and a half of fresh milk") was launched in 1905.
Variant bars include Caramel, "Fruit & Nut" (a bar with raisins and almonds), "Whole Nut"
(with hazelnuts), "Dairy Milk Silk" and a bar with a Turkish delight centre. Dairy Milk Ritz,
a bar with salty Ritz crackers was launched in the United Kingdom in 2014. Alongside this
new bar, Dairy Milk with LUbiscuits was also launched.
A Vegemite flavored bar, which consists of milk chocolate, caramel, and Vegemite (5%),
was launched in Australia in 2015. In 1986 the glass and a half symbol appeared on the front
of the Irish Dairy Milk wrapper.
After the First World War, Cadbury Brothers undertook a financial merger with J. S. Fry &
Sons, which completed in 1919.As a result of the merger, Egbert Cadbury joined the Fry side
of the business. Along with Cecil Roderick Fry he was instrumental in the relocation and of
the Bristol operations of Fry from Union Street to a 228-acre (0.92 km2) green field site
called Somerdale Garden City, after a national competition in 1923.
As Quakers, the factory was built with social facilities, including playing fields and large
recreational sports grounds, which still today serve the town of Keynsham. This transfer took
11 years as production was gradually transferred as the modern blocks erected. Finally
completed in 1935, at its height the Somerdale workforce was in excess of 5,000. It had its
own power station and railway, with connection to the Great Western Railway via sidings
at Keynsham railway station. During World War II, with chocolate production reduced due to
war time rationing, spare floor capacity was taken over by Rolls Royce to produce Merlin
engines.
In April 2011, a fifth advert aired, known as 'Charity Shop' or 'Dancing Clothes', featuring
dancing clothes at a charity shop to the tune of "We Don't Have to Take Our Clothes Off"
by Jermaine Stewart. This exposed the song to a new generation who downloaded the track
and returned the song to the UK Top 40so far reaching no. 29. This ad also marks the return
of the Glass and a Half Full title card.
Glass and a Half Full Records
A new 'record label' was launched as part of the Glass and a
Half Full Productions campaign. The first song released was Zingolo featuring Tinny, to
promote Fairtrade Dairy Milk. A full music video was made incorporating the 60-second ads,
as well as a Facebook page.
Joyville (2012–present)
The 2012 campaign focuses on an 'organisation made to bring joy to
people'. Chocolate fountains were put in shopping centres such as Westfield Londonand the
first ad focused on the relaunch of Dairy Milk Bubbly.
During the campaign in 2012, Cadbury Dairy Milk was launched in new flavours such as
Toffee Popcorn, Golden Biscuit Crunch (an exclusive to Sainsburys), Nutty Caramel and also
Cadbury Dairy Milk with Oreo. Along with the new flavours, Cadbury also launched two
new Bubbly bars including a mini version and a Mint Bubbly. Cadbury has also launched
Crispello and, most recently, launched "Marvellous Creations" in the UK.
In addition, Cadbury also brought the Joyville concept into Asia where Singapore Bloggers
were invited to join in and spread the love.
In 2014, Joyville was replaced with the "Free The Joy" campaign. The song in a television
advert is "Yes Sir, I Can Boogie" by Baccara. A new design was launched for Dairy Milk
(and its variants) inviting consumers to scan an on-pack QR code and visit a website
featuring "Free The Joy" moments.
Type Subsidiary
Industry Confectionery
Website
Design
Cadbury has been making delicious chocolate for over 100 years, but for the first time ever,
they are opening their doors and inviting the nation to „go madbury for Cadbury‟ this July,
by giving chocolate fans the chance to create their very own Cadbury Dairy Milk bar, which
could become the newest addition to the iconic Cadbury Dairy Milk.
To take part in this chocoholics dream challenge, simply enter your dream bar
at cadburyinventor.com where you can pick from a huge range of tasty ingredients which will
be added to a delicious Cadbury Dairy Milk.
From melt in the mouth caramel, gooey brownie, crazy popping candy, spicy chilli, tangy
orange, fiery mustard, crunchy cashews, there‟s over a whopping 90,000 different available
combinations to choose from.
Once the ingredients are chosen (up to three), entrants will name their bar and explain a bit
about what inspired their creation before hitting send on their entry.
The competition closes on 31st July and then all the entries will be put through a rigorous
judging process, with the finalists being selected based on two very important elements: taste
and creativity.
The three lucky finalists will then have the opportunity to visit Cadbury‟s Chocolate Centre
of Excellence in Bournville, the home of Cadbury, where they will work with chocolate
experts to experiment with their creations and make their bar a reality.
All three bars will then be available for fans everywhere to try out in 2019 where the UK will
be able to vote and purchase their favorite creation to decide which of the finalists will
be crowned the ultimate winner.
To enter your Cadbury Inventor creation visit www.cadburyinventor.com or
visitwww.facebook.com/cadburyuk for more details.
CHAPTER: 3
OBJECTIVE OF THE STUDY
OBJECTIVE OF THE STUDY
This project is based on the consumer preference of Nestle Kit Kat with respect of Cadbury
dairy milk. Objective of the study are:-
1. To study the consumer preference towards Cadbury and Nestle
chocolates.
2. T o k now t h e consumers v i e w towards the c ho co la t e s .
This chapter describes the methodology of the study this project is based on information
collected from primary sources. After the detailed study, an attempt has been made to the
present comprehensive analysis of consumption of Cadbury and nestle chocolates consumed
by the people. The data had been used to cover various aspects like consumption, consumer‟s
preference and customer‟s satisfaction 0regarding Cadbury and Nestle chocolates. In
collecting requisite data and information regarding the topic selected, I went to the resident of
Lucknow and collect the data.
Method of data collection:
The data which is collected for the purpose of study is
divided into 2 bases:
Primary source:
Primary data is the data which is new we use the primary source to
collect the primary data. The primary data comprises information survey of “Consumer
preference of Nestle Kit Kat with the respect of Cadbury dairy milk” the data would be
collected directly from the respondent with the help of questionnaires.
Secondary sources:
The secondary data which is already in existence is known as secondary
data. Secondary source includes website, various papers, and magazine published from time
to time. Historical documents and other sources of published information.
The study is a cross sectional study because the data were collected at a single point of time.
For the purpose of present study a related sample of population was selected on the basis of
convenience.
Data source
The secondary data is collected from the internet, Reference from library. Few data
would be taken from the websites, various papers and magazine.
Sample Design
It include size of the sample & the technique that we used for selecting the
different items from the sample a sample design is definite plan for obtaining a sample from a
given population.
Sample type
. Some people often like to have a chocolate with good flavor, quality and
crunchiness so they are going towards Kit Kat and Munch of Nestle due to its taste and
crunchiness. The data had been used to cover various aspects like consumption, consumer‟s
preference and customer‟s satisfaction 0regarding Cadbury and Nestle chocolates.
Sample size
The samples of 100 people are taken on the basis of convenience. The actual
consumer was contacted on the basis of random sample. For the purpose of present study a
related sample of population was selected on the basis of convenience.
Statistical tools to be used
This works carried out through self-administrated
questionnaires. The question included were open ended, dichotomous and offered multiple
choices.
Data Analysis
The data is analysis on the basis of suitable table by using mathematical technique.
The technique that I have used is bar technique. Despite the decrease in Nestlé‟s company
shares in confectionary market since 2007, the brand share of Kit Kat has increased from
2007, from 3.2% to 3.7%, it still lags behind competitors such as Ferrero Rocher, Ricola,
Fisherman‟s Friend and Mentos in the confectionary market. However, through filtering
out of products such as Ricola, Fisherman‟s Friend and Mentos, which are not chocolate
brands, it can be seen that Kit Kat is second behind Ferrero Rocher.
CHAPTER: 5
LIMITATION OF THE STUDY
LIMITITION OF THE STUDY
In attempt to make this project authentic and reliable, every possible aspect of the topic was
kept in mind. Nevertheless, despite of the fact constraints were at play during the formulation
of the project. The main limitations are as follows:
Due to limitation of time only few people were selected for the study. So the
sample of the consumers was not enough to generalize the finding of the study.
The main sources of the data for the study were primary data with the help of
self-administrated questionnaires. Hence, the changes of unbiased information
are less.
People were hesitant to disclose the true fact.
The chance of biased response can‟t be eliminated though all necessary steps
were taken to avoid the some.
CHAPTER: 6
ANALYSIS OF THE STUDY
ANALYSIS OF THE STUDY
Number of Respondent 95 5
100 95
90
80
70
60 Yes
50
No
40
30
20
10 5
0
Number of Respondent
From the above analysis of the given sample of 100 respondents it is conclude that out of 100
people 95 people like to eat chocolate while 5 only people don‟t prefer to eat chocolate.
2. Brand preference of chocolate?
22
Cadbury
Nestle
73
Preference by consumers
From the above analysis of given sample of 93 respondents who eat chocolates it is
concluded that only 22 people prefer to eat nestle chocolate while 73people likes to eat
Cadbury chocolates.
3. Which form of chocolate do you like?
20
33
Hard Nutties
29 25Crunchy
Chew
Number of respondent
According to the above analysis there has 4 forms of chocolate Hard, Nutties, Crunchy,
Chew, where customers are mostly preferred the hard form of chocolate and Chew form of
chocolate is least preferred.
4. What pack do you purchased?
60
50 48
40
30 28
19
20 pack size
10
0
Small Big Family pack
pack size
According to the above analysis it is concluded that out of sample of 95 people who eat
chocolate likes to buy big pack. Family pack is mostly preferred by aged people only. Mostly
it depends on the preference on the customer and its needs. But the company has all the types
of pack for the customers. Mostly consumers want to big pack and small pack, but there are
few consumers are want to family packs of chocolate.
5. Which promotional offers attract you most?
21%
55%
Free gifts
24%
Price offer Any other
Number of Respondents
According to the above analysis it is concluded that out of sample of 95 people who eat
chocolate 52 are attracted by free gifts. 23 price offers while 20were attracted by some other
reasons. There have different brands has different offers to promote his product like gifts and
less price. Mostly brands use to discount rate and gifts on the product.
6. Which of these factors affect your purchase?
22%
8%
57%
Advertisement Doctor advise Brand ambassador
Ingredient
13%
Number of Respondents
According to the above analysis it is concluded that advertisement is the best measure to
attract consumer to purchase more. It impact much more than other factors. While friends and
relatives and brand ambassadors also play a significant role in this regard. When a company
have a good advertisement way then the selling of that company‟s product increased.
7. What according you to reasonable price of chocolate?
60
51
50
40
30
23 20-Oct 20-30
Above-30
20
11
10 6
4
0
1 2 3
price of chocolate
According to the above analysis it is concluded that the consumer thinks 10-20Rs is the
reasonable price of a chocolate. So it must be worthwhile to know this as it may affect
the sale of chocolates .
8. How frequently do you purchase chocolate?
5
17
18
39
Number of Respondent
From the above analysis it is concluded that haw frequently purchase the chocolate weekly is
the average of the purchase of chocolate. A chocolate lover purchase the chocolate weekly,
where the costumer is least purchase the chocolate in quarterly.
9. A sale promotion scheme like Rs2/- off, 10gram extra, free candies etc. would affect
your purchase decision?
60
54
50
40
30 26
20
20 Number of respondent
10
0
DiscountExtra chocolateFree candies
According to the above analysis which sale promotion scheme would affect your purchase
decision like Extra chocolates, Discount, free candies etc. then the customer are mostly
purchase the chocolate when company offered discount rate and least purchased when
provide free candies.
10. Preference according to age groups of chocolate?
40
35
35
30
25 24
0-10
10-20
20
20-30
Above-30
15
10 8
7
5 6
55
5
2111
0
1 2 3 4
According to the above analysis it is conclude that people of different age group prefer
mostly Cadbury brand of chocolate while nestle brand is least preferred by the age group
between 10-20. People of age group above 30 equally like to have both brands.
Cadbury chocolate mostly like by the teens where Nestle chocolates mostly like by the
adults‟ children and teen prefer eat to dairy milk of Cadbury and adults like to eat Kit Kat
chocolate most.
11. Are you happy with the kind of chocolate brands available in India?
27%
Yes No
73%
Number of respondent
From the above analysis it is concluded that the consumer are happy with the kind of
chocolate brand available in India 73% people are happy with different chocolate brand in
India are available and 27% people are not to satisfy.
12. What are the factors influencing during purchase?
450
400 391
350
300 344 344 342
250
200 295 301 297 Grand total
150 268
100 Average
50
0
Rank
According to the above analysis it is concluded that on an average mostly people are
influenced by flavor/taste followed by quality, brand and image. It is surprised to know that
very few people are influenced by price followed by shape of the chocolate.
13. Which media of advertisement influence your purchase?
45
42
40
35
30
27
25
20 19 Number of respondent
16
15
11
10
According to the above analysis it is concluded that mostly people are influence by the
Television type of Advertisement and the people are less influence by the display for the
advertisement of the product.
14. Consumer‟s Brand Loyalty for purchasing of chocolate?
50
45 45
40
35
30
25
20 26
15 24
10
5
Number of Respondent
0
According 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 like to search for it or they are ready to
postpone their purchase.
Reasons for not switching over to other brands
All the consumers why they continue to buy the old brand gave various important reasons.
The most important reasons given by the consumers were:
Taste/Flavor
Brand
Image
Quality
Packaging
At such times, the customer gives very less time and attention to your brand. You have to
attract the customer within seconds. Thus, your brand building starts much before the
customer enters the final buying stage.
Equally important is the fact, that at the buying stage, the customer can switch brands easily.
Instead of deciding to go ahead with your brand, he can decide to finalise a
competitor‟s product or their brand. So what are the reasons for brand switching? Let us
dwell deeper in the customer‟s mind
One of the major reasons for brand switching is “not enough value” being provided by your
brand against the price being offered to the customer. This value can be monetary, it can be
an emotional value or it can be targeted towards the personality of the buyer.
CHAPTER: 7
SWAT ANALYSIS
SWOT ANALYSIS
Strengths:
Environmental sustainability efforts.
Unmatched research and development capability.
Strong distribution channel.
Strong research & development.
Strong geographic presence, with one of the best geographically diversified
revenue sources.
Weakness:
Row material supply- volatile prices.
Lack of penetration of chocolates in the rural market.
Criticism over high water usages selling contaminated food, anti-unionism,
forced child labor and using other unethical practices.
Opportunities:
Clear and accurate labeling indicating of any harmful products.
Transparency in material sourcing.
Growing number of small Silicon Valley based food startups.
Low penetration, consumption.
Launch of brands from international portfolio.
Threats:
Poor quality water and its scarcity.
Increased competition in the beverage and food industry.
The price of coffee beans could significant rise due to major weather disaster.
Foreign imports.
Changing consumer trends.
CHAPTER: 8
SUGGESTIONAND
RECOMMENDATION
SUGGETION AND RECOMMENDATIONS
A survey of the people has been conducted to know liking pattern of the two products
Cadbury and Nestle. It is observed that overall people like to eat Cadbury brand rather than
Nestle. It is concluded than mostly people preferred Dairy milk of Cadbury due to its
flavor/taste, quality and image and due to its hard form. Some people often like to have a
chocolate with good flavor, quality and crunchiness so they are going towards Kit Kat and
Munch of Nestle due to its taste and crunchiness.
It is thus concluded from the fact collected that mostly people refer to buy big pack of their
favorite chocolate, and sometimes some of them go for small and family pack.
CHAPTER:
10
BIBILIOGRAPHY
BIBLIOGRAPHY
1. http://www.cadburyindia.com
2. http://www.nestle.com
3. https://www.nestleusa.com/
4. http://www.aphrodite chocolates.co.uk/history_chocolate.htm
5. http://www.cadbury.co.nz/carnival/index.htm
6. https://en.wikipedia.org/wiki/List_of_Nestl%C3%A9_brands
7. http://www.packaging-technology .com/…/cadbury4.html
8. https://www.nestleskinhealth.com/manufacturing
9. http://www.chocolatereview.co.uk
10. http://en.wikipedia.org/wiki/preference
CHAPTER: 11
ANNEXURE
QUESTIONNAIRE
9. A sale promotion scheme like Rs2/- off, 10gram extra, free candies etc. would
affect your purchase decision?
Yes [ ] No [ ]
10. Are you happy with the kind of chocolate brands available in
India? Yes [ ] No [ ]