INTRODUCTION

INTRODUCTION TO CHOCOLATE INDUSTRY

Chocolate
The very word makes your mouth water.
Chocolate is more than just a food: its a state of mind.

Chocolate
Chocolates! Chocolates!
Everybody has a liking for them, be they in the form of bar
Or a tiny little gem,
Or shaped like a rectangle,
Or a sphere, a brick or an clair.
For chocolate lovers it is fun,
To have them during rain, breeze or sun.
They are white and brown in color,
And taste sweet and bitter
Some have them in a glass of cold coffee, or in the form of a toffee.
Some eat them when they are sad
Some relish them when they are happy or have sweet dreams,
But I feel, to have chocolates
We dont need a reason,
Cause we can have it
Anytime, any season!

HISTORY OF CHOCOLATE

The origin of chocolate can be traced back to the ancient Maya and Aztec civilizations in
Central America, who first enjoyed chocolaty a much-prized spicy drink made from roasted
cocoa beans.
Throughout its history, whether as cocoa or drinking chocolate beverage or confectionary
treat, chocolate has been a much sought after food.
The Aztec empire
Chocolate(in the form of a luxury drink) was consumed in large quantities by the aztecs:
the drink was described as finely ground, soft, foamy, reddish, bitter with chilli water,
aromatic flowers, vanilla and wild bee honey.
The dry climate meant the Aztecs were unable to grow cocoa trees, and had to obtain supplies
of cocoa beans from tribute or trade
Don Cortes
The Spanish invaded Mexico in the 16th century, by this time the Aztecs had created a
powerful empire, and the Spanish armies conquered Mexico. Don Cortes was made captain
general and governor of Mexico.
When he returned to Spain in1528 he loaded his galleons with cocoa beans and equipment
for making the chocolate drink. Soon chocolate became a fashionable drink enjoyed by the
rich in Spain.
Chocolate across Europe
An Italian traveler, Francesco carletti, was the first to break the Spanish monopoly. He had
visited Central America and seen how the Indians prepared the cocoa beans and how they
made the drink, and by 1606 chocolate was well established in Italy.
Drinking chocolate
The secret of chocolate was taken to France in 1615, when Anne, daughter of Phillip 2 of
Spain married king Louis 13 of France
The French court enthusiastically adopted this new exotic drink, which was considered to
have medicinal benefits as well as being a nourishing food. Gradually the custom of drinking
chocolate spread across Europe, reaching England in the 1650s

First chocolate for eating

Up until this point all chocolate recipes were based on plain chocolate. It was an English
doctor, sir Hanss sloane, who- after traveling in south America- focused on cocoa and food
values, bringing a milk chocolate recipe back to England.
The original Cadbury milk chocolate was prepared to his recipe.
History:
The earliest record of chocolate was over fifteen hundred years ago in the central America
rain forests, where the tropical mix of high rain fall combined with high year round
temperatures and humidity provide the ideal climate for cultivation of the plant from which
chocolate is derived, the cacao tree.
Chocolate is made from the cocoa bean, found in pods growing from the trunk and lower
branches of the cacao tree, Latin name the obroma cacao meaning food of the gods
Cacao was corrupted into the more familiar cocoa by the early European explorers. The
Maya brewed a spicy, bittersweet drink by roasting and pounding the seeds of the cacao tree
with maize and capsicum peppers and letting the mixture ferment. This drink was reserved
for use in ceremonies as well as for drinking by the wealthy and religious elite; they also ate
cacao porridge.
The Aztecs, like the Mayans, also enjoyed cacao as a beverage fermented from the raw
beans, which again featured prominently in ritual and as a luxury available only to the very
wealthy. The Aztecs called this drink xocolat, the Spanish conquistadors found this almost
impossible to pronounce and so corrupted it to the easier chocolat the English further
changed this to chocolate.
The Aztecs regarded chocolate as an aphrodisiac and their emperor, Montezuma reputedly
drank it fifty times a day from a golden goblet and is quoted as saying of xocolat the divine
drink, which builds up resistance and fights fatigue. A cup of this precious drink permits a
man to walk for a whole day without food
Chocolate in Europe
Xocolat or chocolat or chocolate as it became known, was brought to Europe by Cortez, by
this time the conquistadors had learned to make the drink more palatable to European tastes
by mixing the ground roasted beans with sugar and vanilla ( a practice still continued today),
thus offsetting the spicy bitterness of the brew the Aztecs drank.

The first chocolate factories opened in Spain, where the dried fermented beans brought back
from the new world by the Spanish treasure fleets were roasted and ground, and by the early
17th century chocolate powder from which the European version of the drink was madewas being exported to other parts of Europe. The Spanish kept the source of the drink- the
beans- a secret for many years, so successfully in fact, that when English buccaneers boarded
what they thought was a Spanish treasurer galleon in 1579, only to find it loaded with what
appeared to be dried sheeps droppings, they burned the whole ship in frustration. If only
they had known, chocolate was so expensive at that time, that it was worth its weight in
silver (if not gold), chocolate was treasure indeed!
Within a few years, the cocoa beverage made from the powder produced in Spain had
become popular throughout Europe, in the Spanish Netherlands, Italy, France, Germany and
in about 1520 it arrived in England.
The first chocolate house in England opened in London in 1657 followed rapidly by many
others. Like the already well-established coffee houses, they were used as clubs where the
wealthy and business community met to smoke a clay pipe of tobacco, conduct business and
socialize over a cup of chocolate.
Back to the Americas
Events went full circle when English colonists carried chocolate (and coffee) with them to
Englands colonies in North America. Destined to become the united states of America and
Canada, they are now the worlds largest consumers by far of both chocolate and coffee,
consuming over half of the words total production of chocolate alone.
The Quakers
The Quakers were, and still are, a pacifist religious sect, an offshoot of the puritans of English
civil war and pilgrim fathers fame and a history of chocolate would not be complete without
mentioning their part in it. Some of the most famous names in chocolate were Quakers, who
for centuries held a virtual monopoly of chocolate making in the English speaking world
fry, Cadbury and row tree are probably the best known.
Its probably before the time of the English civil war between parliament and King Charles
1st that the Quakers who evolved from the puritans, first began their historic association
with chocolate. Because of their pacifist religion, they were prohibited from many normal
business activities, so as an industrious people with a strong belief in the work ethic (like the
puritans), they involved themselves in food related businesses and did very well. Baking was
5

a common occupation for them because bread was regarded as the biblical staff of life, and
bakers in England were the first to add chocolate to cakes so it would be a natural progression
for them to start making pure chocolate. They were also heavily involved in breakfast cereals
but thats another story.
What is certain is that the fry, row tree and Cadbury families in England among others, began
chocolate making and in fact Joseph fry of fry &sons (founded 1728 in Bristol, England) is
credited with producing and selling the worlds first chocolate bar. Frys have now all but
disappeared (taken over by Cadbury) and row tree have merged Swiss company nestle, to
form the largest chocolate manufacturer in the world. Cadbury have stayed with chocolate
production and are now, if not quite the largest, probably one of the best-known chocolate
makers in the world.
Chocolate as we know it
The first mention of chocolate being eaten in solid form is when bakers in England began
adding cocoa powder to cakes in the mid 1600s. Then in 1828 a Dutch chemist, Johannes
van houten, invented a method of extracting the bitter tasting fat or cocoa butter from the
roasted ground beans, his aim was to make the drink smoother and more palatable, however
he unknowingly paved the way for solid chocolate as we know it.
Chocolate as we know it today first appeared in 1847 when fry & sons of Bristol, England
mixed sugar with cocoa powder and cocoa butter (made by the van houten process) to
produce the first solid chocolate bar then in1875 a Swiss manufacturer,
Daniel peters, found a way to combine (some would say improve, some would say ruin)
cocoa powder and cocoa butter with sugar and dried milk powder to produce the first milk
chocolate.

CHOCOLATE PRODUCTION
The cocoa-bean -- the heart of the sweetest delicacy in the world -- is bitter! This is why, up
to the 18th century some native tribes ate only the sweetish flesh of the cocoa fruit. They
regarded the precious bean as waste or used it, as was the case among the Aztecs, as a form of
currency.

The Varieties
There are two quite different basic classifications of cocoa, under which
practically all varieties can be categorized: Criollo and Forastero cocoas. The
pure variety of the Criollo tree is found mainly in its native Equador and
Venezuela. The seeds are of finer quality than those of the Forastero variety.
The Harvest
Immediately after harvesting, the fruit is treated to prevent it from rotting. At
fermentation sites either in the plantation or at, collecting

points, the fruit

is opened.
Fermentation
The fermentation process is decisive in the production of high quality raw cocoa. The
technique varies depending on the growing region.
Drying
After fermentation, the raw cocoa still contains far too much water; in fact about 60%. Most
of this has to be removed.
What could be more natural than to spread the beans out to dry on the sun-soaked ground or
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 of wood, jute fibres, sand and even the
finest dust are extracted by powerful vacuum equipment.
Roasting
The subsequent roasting process is primarily designed to develop the aroma. The entire
roasting process, during which the air in the nearly 10 feet high furnaces reaches a
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. The
secret of every chocolate factory lies in the special mixing ratios, which it has developed for
different types of cocoa.
Grinding
The crushed cocoa beans, which are still fairly coarse are now pre-ground by special milling
equipment and then fed on to rollers where they are ground into a fine paste. The heat
generated by the resulting pressure and friction causes the cocoa butter (approximately 50%
of the bean) contained in the beans to melt, producing a thick, liquid mixture.
This is dark brown in color with a characteristic, strong odour. During cooling it gradually
sets: this is the cocoa paste.
At this point the production process divides into two paths, but which soon join again. A part
of the cocoa paste is taken to large presses, which extract the cocoa butter. The other part
passes through various blending and refining processes, during which some of the cocoa
butter is added to it. The two paths have rejoined.
Cocoa Butter
The cocoa butter has important functions. It not only forms part of every recipe, but it also
later gives the chocolate its fine structure, beautiful lustre and delicate,
attractive glaze.

Cocoa Powder
After the cocoa butter has left the press; cocoa cakes are left which still contain a 10 to 20%
proportion of fat depending on the intensity of compression.
These cakes are crushed again, ground to powder and finely sifted in several stages and we
obtain a dark, strongly aromatic powder, which is excellent for the preparation of delicious
drinks - cocoa. Cocoa paste, cocoa butter, sugar and milk are the four basic ingredients for
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making chocolate. By blending them in accordance with specific recipes the three types of
chocolate are obtained which form the basis of ever product assortment,
namely:
Kneading
In the case of milk chocolate for example, the cocoa paste, cocoa butter, powdered or
condensed milk, sugar and flavouring - maybe vanilla - go into the mixer, where they are
pulverized and kneaded.
Rolling
Depending on the design of the rolling mills, three or five vertically mounted steel rollers
rotate in opposite directions. Under heavy pressure they pulverise the tiny particles of cocoa
and sugar down to a size of approx. 30 microns. (One micron is a thousandth part of a
millimetre.)
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 this period the chocolate
paste will be refined to such an extent in the conches that it will flatter even the most
discriminating palate.
Conches (from the Spanish word "concha", meaning a shell) is the name
given to the troughs in which 100 to 1000 kilograms of chocolate paste at a
time can be heated up to 80 C and, while being constantly stirred, is given a velvet
smoothness by the addition of certain amounts of cocoa butter. A kind of aeration of the
liquid chocolate paste then takes place in the conches: its bitter taste gradually disappears and
the flavor is fully developed.

GROWTH RATE
India's chocolate market is estimated at around Rs 3,000 crore while the organized
confectionery market is around Rs 2,000 crore. The overall chocolate market is growing 15%
a year, while the growth in modern retail is almost double of that. As per a recently published
report, India's chocolate market is expected to reach $3.2 billion by 2018 due to increasing
gifting culture in the country and increase in the income bracket.
The chocolate market in precedent years has been witnessing tremendous growth in terms of
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value as well as volume. Indian chocolate industry has registered a growth of 15% per annum
from 2008 to 2012 and is projected to grow even at a higher rate in future. The industry has a
positive outlook due to phenomenal growth in the confectionery industry.

According to India Chocolate Market Forecast & Opportunities, 2018, the per capita
consumption of chocolates is increasing in the country which will continue to flourish the
market revenues. It is expected that India chocolate industry will be growing at the CAGR
23% by volume between the years 2013-2018 and reach at 3,41,609 Tons. Dark Chocolates
are said to lead the milk chocolates in consumption and use of organic raw materials like
herbs in making chocolates is likely to boost the unorganized chocolate industry in India.

THE PLAYERS IN THE CHOCOLATE INDUSTRY

Cadbury
Cadbury is a British multinational chocolate major. It is handled by Mondelez India (earlier
Cadbury India). Cadbury was established in Birmingham, U.K. by John Cadbury in 1824.
Cadbury entered India in 1948 and started its operations by importing chocolates. Today,
Cadbury is the most loved and most widely sold in India. According to Euromonitor
International, Cadbury accounted for 55.5% of the total chocolate sales in India during 2014.
Dairy Milk is the flagship brand of Cadbury. Here are some of the most famous Cadbury
variants:
Dairy Milk
5 Star
Gems
Perk
Silk
Bournville
Celebrations

Nestle
Founded in 1866, Nestle is a multinational beverage and consumer food items company
based in Switzerland. Henry Nestle founded the company in Vevey, Switzerland. Nestle came
to India in the late 1950s. Nestle was the second best-selling chocolate brand in India in 2014
with 17% share of the total sales volume. Kit Kat, a bar of crisp wafer fingers covered with
chocolate layer, is Nestle's flagship variant in India. Some of the widely consumed Nestle
brands are as follows:

Extra Smooth
10

Kit Kat Senses

Kit Kat Dark Senses
Alpino
Kit Kat
Bar-One
Munch

Ferrero India

Ferrero is an Italian food and beverage company founded in 1946 by Michele Ferrero. The
company started its business in India in 2004 and has gained a considerable ground in the
Indian chocolate industry within a decade. It is famous for its unique taste defined by its main
ingredients creamy filling, a crunchy wafer and a hazelnut centre. Ferrero India was the
third biggest chocolate brand in India as it held 5% market share in 2014. Ferrero Rocher is
the flagship variant of Ferrero India. Here are some of the Ferrero variants:
Ferrero Rocher
Nutella
Kinder
Raffaello
Mon Cheri

Amul

Amul is India's indigenous dairy cooperative primarily dealing in dairy products. It is also
one of the biggest players involved in chocolate manufacturing industry of India. Amul is
owned by Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) and was founded
in 1946 by Dr. Verghese Kurien. The credit of making India the largest producer of milk and
dairy products by bringing about the 'White Revolution' goes to Amul. Milk chocolate is
Amul's most trusted brand amongst Indians. Accounting for 1.1% of India's overall chocolate
sales volume in 2014, Amul stands fourth. Some of its variants are as follows:
Milk Chocolate
Dark Chocolate
Fruit & Nut Chocolate
Tropical Orange Chocolate
Almond Bar

Mars India International

Mars was established in 1911 by Franc C. Mars in Washington, U.S.A. The first recognised
brand of Mars was Milky Way that was launched in 1920s. Mars has been popular in India as
well. Very recently, Mars has started its manufacturing in India. Snickers and Galaxy are the
most popular chocolates in India that are made by Mars. The company was the fifth biggest
seller of chocolates in India in 2014 as it got 1.1% share of the total sales. Some of its
products are as follows:
Snickers
Galaxy
Mars
11

Milky Way
Skittles
M&M's
Twix

KEY CHALLENGES

Competitive market
12

 Volatile cocoa prices

Health concerns
Supply chain management
Sustainability

13

COMPANY PROFILE

COMPANY PROFILE

NESTLE

14

Nestle India
Nestle India is a subsidiary of Nestle S.A. of Switzerland. The company insists on honesty,
integrity and fairness in all aspects of its business and expects the same in its relationships.

Nestle India- Presence Across India

Beginning with its first investment in Moga in 1961, Nestls regular and substantial
investments established that it was here to stay. In 1967, Nestl 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, Nestl commissioned two factories in Goa at
Ponda and Bicholim respectively. Nestl India is now putting up the 7th factory at Pant Nagar
in Uttaranchal.

Nestle Story
Nestl was founded in 1867 on the shores of Lake Geneva in Vevey, Switzerland and its first
product was Farine Lacte Nestl, an infant cereal specially formulated by Henri Nestl to
provide and improve infant nutrition. From its first historic merger with the Anglo-Swiss
Condensed Milk Company in 1905, Nestl has grown to become the worlds largest and most
diversified food Company, and is about twice the size of its nearest competitor
food

and

beverage

in

the

sector.

Nestls trademark of birds in a nest, derived from Henri Nestls personal coat of
arms, evokes the values upon which he founded his Company. Namely, the values of security,
maternity and affection, nature and nourishment, family and tradition. Today, it is not only the
central element of Nestls corporate identity but serves to define the Companys products,
responsibilities,

business

practices,

ethics

and

goals.
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In 2004, Nestl had around 247,000 employees worldwide, operated 500

factories in approx. 100 countries and offered over 8,000 products to millions of consumers
universally. The Companys 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. Nestls activities contribute to and nurture the sustainable
economic development of people, communities and nations. Above all, Nestl is dedicated to
bringing the joy of Good Food, Good Life to people throughout their lives, throughout the
world.

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

MILK PRODUCTS AND NUTRITION:

NESTL EVERYDAY Dairy Whitener
NESTL EVERYDAY Slim
NESTL EVERYDAY Ghee
NESTL MILKMAID
NESTL Fresh 'n' Natural Dahi
NESTL Fresh 'n' Natural Slim Dahi
NESTL Jeera Raita
NESTL MILKMAID Fruit yoghurt
NESTL Milk
NESTL Slim Milk
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BEVERAGES:

NESCAF CLASSIC
NESCAF SUNRISE
NESTL MILO
NESCAF 3 in 1
NESCAF Koolerz

PREPARED DISHES AND COOKING AIDS

MAGGI 2-MINUTE Noodles
MAGGI Vegetable Atta Noodles
MAGGI Dal Atta Noodles
MAGGI Rice Noodles Mania
MAGGI Sauces
MAGGI Pizza Mazza
MAGGI Healthy Soups
MAGGI Healthy Soup- Sanjeevni
MAGGI MAGIC Cubes

CHOCOLATES & CONFECTIONARY

NESTL KIT KAT
NESTL KIT KAT LITE
NESTL MUNCH
NESTL MUNCH POP CHOC
NESTL MILKYBAR
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NESTL MILKYBAR CHOO

NESTL BAR-ONE
NESTL FUNBAR
NESTL Milk Chocolate
POLO
POLO Powermint
NESTL Eclairs

NESTLEKITKAT

NESTL KIT KAT are crisp wafer fingers covered with choco layer. NESTL KIT
KAT has a unique finger format with a breaking' ritual attached to it.
NESTL KIT KAT is one of the most successful brands in the world and every year
over 12 billion NESTL KIT KAT fingers are consumed around the globe.
NESTLE MUNCH

NESTL MUNCH is wafer layer covered with delicious choco layer. NESTL MUNCH is
so crisp, light and irresistible that you just can't stop Munching.' NESTL MUNCH is the
largest selling SKU in the category!
NESTLE MILKY BAR:
NESTL MILKYBAR is a delicious milky treat, which kids love. Relaunched in January
2006 with a Calcium Rich recipe, NESTL MILKYBAR is a favorite with parents to treat
their kids with.

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NESTLE BAR-ONE
is a luscious nougat and caramel with delicious choco layer. NESTL BAR-ONE constantly
reminds you that it is Time for Action'.
NESTLE Milk Chocolate:
NESTL Milk Chocolate is a milk chocolate with a delicious taste. Kids just love it!

ORGANIZATION STRUCTURE

19

CADBURY
How Cadbury Chocolate is made

20

John Cadbury
Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder John
paste to the dark chocolate recipe of cocoa mass, cocoa butter and sugar. By today's standards
this chocolate was not particularly good: it was coarse and dry and not sweet or milky enough
for public tastes.
There was a great deal of competition from continental manufacturers, not only the
French,but

also

the

Swiss,

renowned

for

their

milk

chocolate.

Led by George Cadbury Junior, the Bournville experts set out to meet the challenge. A
considerable amount of time and money was spent on research and on new plant designed to
produce the chocolate in larger quantities.
A recipe was formulated incorporating fresh milk, and production processes were developed
to produce a milk chocolate 'not merely as good as, but better than' the imported milk
chocolate'.
Four years of hard work were invested in the project and in 1905 what was to be Cadbury's
top selling brand was launched.
Three names were considered: Jersey, Highland Milk and Dairy Maid.
Dairy Maid became Dairy Milk, and Cadbury's Dairy Milk, with its unique
flavour and smooth creamy texture, was ready to challenge the Swiss domination of the milk
chocolate market.
By 1913 Dairy Milk had become the company's best selling line and in the mid twenties
Cadbury's Dairy Milk gained its status as the brand leader, a position it has held ever since.

COMPANY OVERVIEW OF CADBURY INDIA

Cadbury began its operations in 1948 by importing chocolates and then re-packing them
before distribution in the Indian market. After 59 years of existence, it today has five
21

company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior),

Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota
andChennai).The corporate office is in Mumbai.

Currently Cadbury India operates in three sectors viz. Chocolate Confectionery, Milk Food
Drinks and in the Candy category.
In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership
over the years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk, clairs 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 chocolates in India. The pure taste of CDM defines the chocolate taste for the
Indian consumer.
In the Milk Food drinks segment their main product is Bournvita - the leading Malted Food
Drink (MFD) in the country. Similarly in the medicated candy category Halls is the
undisputed leader.
The Cadbury India Brand Strategy has received consistent support through simple but
imaginative extensions to product categories and distribution. A good example of this is the
development of Bytes. Crispy wafers filled with coca cream in the form of a bagged snack,
Bytes is positioned as "The new concept of sweet snacking". It delivers the taste of chocolate
in the form of a light snack, and thus heralds the entry of Cadbury India into the growing
bagged Snack Market, which has been dominated until now by Salted Bagged Snack Brands.
Bytes was first launched in South India in 2003.
Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For
over two decades, it has worked with the Kerala Agriculture University to undertake cocoa
research and released clones, hybrids that improve the cocoa yield.
Today, Cadbury is poised in its leap towards quantum growth and new categories of business,
namely gums, mints, snacking and gifting. It is a part of the Cadbury Schweppes Group,
world's No.1 Confectionery Company.

CADBURY WORLD WIDE

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Cadbury is the world's largest confectionery company and have a strong regional presence in
beverages in the Americas and Australia.
With origins stretching back over 200 years, today their products - which
include brands such as Cadbury, Schweppes, Halls, Trident, Dr Pepper,
Snapple, Trebor, Dentyne, Bubblicious and Bassett - are enjoyed in almost every country
around the world. We employ around 60,00 people.
Their heritage starts back in 1783 when Jacob Schweppe perfected his process for
manufacturing carbonated mineral water in Geneva, Switzerland. And in 1824 John Cadbury
opened in Birmingham selling cocoa and chocolate.
These two great household names merged in 1969 to form Cadbury
Schweppes plc. Since then they have expanded their business throughout
the world by a programme of organic and acquisition led growth.
Concentrating on their core brands in beverages and confectionery since the 1980s, they have
strengthened their portfolio through almost fifty acquisitions, including brand icons such as
Mott's, Canada Dry, Halls, Trident, Dentyne, Bubblicious, Trebor, Bassett, Dr Pepper, 7 Up
and Snapple.
-

It employ 60,000 people in over 200 countries

Worlds No 1 Confectionery company

World's No 2 Gums company

World's No 3 beverage company

Cadbury Brands:
Chocolates
Snacks
Beverages
Candy
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SNACKS:
Bytes

BEVERAGES
Bournvita

CANDY
Halls

CHOCOLATES
Dairy Milk
5 Star
Perk
Celebrations
Temptation
Eclairs
Gems

DAIRY MILK

The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K., but the
journey with chocolate lovers in India began in 1948.

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The variants Fruit & Nut, Crackle and Roast Almond, combine the classic taste of Cadbury
Dairy Milk with a variety of ingredients and are very popular amongst teens & adults.
Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie, chocolate
with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a delightful
combination of milk chocolate and white chocolate. Giving consumers an exciting reason to
keep coming back into the fun filled world of Cadbury.
Today, Cadbury Dairy Milk alone holds 30% value share of the Indian chocolate market.

5 STAR
The second largest after Cadbury Dairy Milk with a market share of 14%, Cadbury 5 Star
moves from strength to strength every year by increasing its user base.
Launched in 1969 as a bar of chocolate that was hard outside with soft caramel nougat inside,
Cadbury 5 Star has re-invented itself over the years to keep satisfying the consumers taste for
a high quality & different chocolate eating experience.
One of the key properties that Cadbury 5 Star was associated with was its classic Gold colour.
And through the passage of time, this was one property that both, the brand and the consumer
stuck to as a valuable association.
More recently, to give consumers another reason to come into the Cadbury 5 Star fold,
Cadbury 5 Star Crunchy was launched. The same delicious Cadbury 5 Star was now available
with a dash of rice crispies.
PERK
Cadbury launched Perk in 1996. With its light chocolate and wafer construct, Cadbury Perk
targeted the casual snacking space that was dominated primarily by chips & wafers.
With the rise of more value-for-money brands in the wafer chocolate segment, Cadbury Perk
unveiled two new offerings - Perk XL and XXL. In 2004, with an added dose of 'Real
Cadbury Dairy Milk' and an 'improved wafer', Perk became even more irresistible
CELEBRATIONS
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Cadbury Celebrations was aimed at replacing traditional gifting options like Mithai and dryfruits during festive seasons.
Cadbury Celebrations is available in several assortments: An assortment of chocolates like 5
Star, 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.
The super premium Celebrations Rich Dry Fruit Collection which is a festive offering is an
exotic range of chocolate covered dry fruits and nuts in various flavors and the premium dark
chocolate range which is exotic dark chocolate in luscious flavors.
TEMPTATION
Cadbury
flavors

Temptations

is

range

of

delicious

premium

chocolate

in

five

variants - Roast Almond Coffee, Honey Apricot, Mint Crunch, Black Forest

and Old Jamaica.

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Review of Literature

27

LITERATURE REVIEW
Importance of consumer behavior for marketers consumer behavior is helpful in
understanding the purchase behavior and preference of different consumer as consumer; we
differ in terms of gender, age, education, occupation, income, family setup, religion,
nationality, and social status. Because of these different background factors we have different
needs and we only buy those brands and services, which we think we satisfy our needs. In
todays work of rapidly changing technology, firm has to be constantly innovating and
understand the latest consumer trends and tastes consumer behavior provides invaluable clues
and guide lines to marketer and new technological frontiers, which they should explore.
A consumer decision to purchase a particular brand to service is result of complex
interplay of a consumer of variables the starting point for the company provides the decision
process marketing stimuli in the shape of brand, promotion, price and distribution strategy.
The potential consumer along with other stimuli already existing receives the marketing
stimuli in the environment. The stimuli may be social economic, cultural, technological and
political in nature.
At the point of receiving the marketing stimuli the consumer already has a certain mental,
emotional and psychological frame of mind developing over the years by culture, religious,
social, family and psychological background.

MAJOR FACTORS INFLUENCING BUYING

BEHAVIOUR

Consumer behavior is affected by a host of variables ranging from personal, professional

needs, attitudes and values, personality characteristics, social economic and cultural
background, age, gender, professional status to social influences of various kinds exerted a
family, friends, colleagues, and society as a whole. The combination of these variation factors
produce a different impact on each one to us a manifested in our different behavior as
consumer.
Psychological factors that as individual consumer needs, motivations, perceptions
attitudes, the learning process personality and personality characteristics are the similarities,
which operate across the different types of people and influence their behavior.
28

There are four major factors which influences on the buying behavior of consumers.
Cultural factors :
On consumer behavior culture can be defined as the sum total of learned belief, value
and custom that serves to guide and direct the consumer behavior of all members of that
society. Culture is a learned through the following three ways.
1. Formal learning
2. Informal learning
3. Technical learning
Culture is a most fundamental determinant persons wants and behavior, the growing
child acquires a set of values, perceptions, preferences and behavior through his family and
key institutions.
Social factors :
Consumer behavior is also influenced by such social factors as reference groups,
family and social roles and status
Reference groups: Many groups influence a persons behavior a person reference consist of
all the groups that have a direct or indirect influence on the persons attitude and behavior.
Roles and status: A role consists of the activities that a person is expected to perform. Each
role carries a status. Supreme court judge has more status than a sales manages and a sales
manages has more status than office clerk.
Personal factors :
Buyers decisions are also influenced by personal characteristics the buyers age and life
cycle stages, occupation, economic circumstances, lifestyle and personality and self-concept.
Psychological factors:
Abraham mallows needs can be ranked in order are importance from the low biological
needs to the higher levels of psychological needs.
29

MASLOWS hierarchy of human needs us understand consumer motivation it is useful

for the marketer who can identify what generic level need this brand is capable fulfilling and
accordingly position his brand and back it up with relevant marketing inputs. Brands such as
food and clothes are brought two fulfill psychological needs.

STAGES OF THE CONSUMER BUYING PROCESS

Six Stages to the Consumer Buying Decision Process (For complex decisions).
Actual purchasing is only one stage of the process. Not all decision processes lead to a
Purchase. All consumer decisions do not always include all 6 stages, determined by
the degree of complexity.
1. Problem Recognition (awareness of need)--difference between the desired state and
the actual condition. Deficit in assortment of products. Hunger--Food. Hunger
stimulates your need to eat. Can be stimulated by the marketer through product
information--did not know you were deficient? I.E., see a commercial for a new pair
of shoes, stimulates your recognition that you need a new pair of shoes.
2. Information search-- Internal search, memory. External search if you need more
information. Friends and relatives (word of mouth). Marketer dominated sources;
comparison shopping; public sources etc. A successful information search leaves a
buyer with possible alternatives, the evoked set. Hungry, want to go out and eat,
evoked set is chinese food, indian food, burger king, klondike kates etc
3. Evaluation of Alternatives--need to establish criteria for evaluation, features the
buyer wants or does not want. Rank/weight alternatives or resume search. May decide
that you want to eat something spicy, Indian gets highest rank etc. If not satisfied with
your choice then return to the search phase. Can you think of another restaurant?
Look in the yellow pages etc. Information from different sources may be treated
Differently. Marketers try to influence by "framing" alternatives.
4. Purchase decision--Choose buying alternative, includes product, package, store,
Method of purchase etc.
5. Purchase--May differ from decision, time lapse between 4 & 5, product availability.
6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction.Cognitive
Dissonance, have you made the right decision. This can be reduced by warranties,
30

after sales communication etc. After eating an indian meal, may think that really you
wanted a chinese meal instead.

TYPES OF CONSUMER BUYING BEHAVIOUR

Types of consumer buying behavior are determined by:
Level of Involvement in purchase decision. Importance and intensity of interest in a Product
in a particular situation. Buyers level of involvement determines why he/she is motivated to
seek information about a certain products and brands but virtually ignores others. High
involvement purchases--Honda Motorbike, high priced goods, Products visible to others, and
the higher the risk the higher the involvement.
Types of risk:- Personal risk, Social risk, Economic risk
The four type of consumer buying behavior are:
Routine Response/Programmed Behavior--buying low involvement frequently Purchased low
cost items; need very little search and decision effort; purchased Almost automatically.
Examples include soft drinks, snack foods, milk etc. Limited Decision Making--buying
product occasionally. When you need to obtain Information about unfamiliar brand in a
familiar product category, perhaps. Requires a moderate amount of time for information
gathering. Examples include Clothesknow product class but not the brand. Extensive
Decision Making/Complex high involvement, unfamiliar, expensive and/or Infrequently
bought products. High degree of economic/performance/psychological Information and
deciding. Information from the companies MM; friends and relatives, Store personnel etc. Go
through all six stages of the buying process. Impulse buying, no conscious planning.
The purchase of the same product does not always elicit the same Buying
Behavior. Product can shift from one category to the next. For example: Going out for dinnr
for one person may be extensive decision making (for someone that does not go out often at
all), but limited decision making for someone else. The reason for the dinner, whether it is an
anniversary celebration, or a meal with a couple of friends will also determine the extent of
the decision making.

31

RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY

32

RESEARCH METHODOLOGY
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 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, consumers
preference and customers satisfaction regarding Cadbury and Nestle chocolates. In collecting
requisite data and information regarding the topic selected, I went around and meet few
residents in Chandigarh (youngsters, senior citizens, childrens) contacted many through
networking sites like facebook, blogs, groups, spoke to many of my friends, family, office
collogues and collected the data from different parts of Chandigarh.
Survey design:
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.

Sample Size:
A sample of 50 people was taken on the basis of convenience. The actual consumers were
contacted on the basis of random sampling.

SAMPLING TECHNIQUE

I have selected the sample through convenience sample and random sampling.

SAMPLING UNIT

Sampling unit means a single section selected to research and gather statistics of the whole.
Here the main target were Random Peoples in which number of Females 17 And Males 33.

33

Research Instrument:
This work is carried out through self-administered questionnaires. The questions included
were open ended, dichotomous and offered multiple choices.

Data Collection:
The data, which is collected for the purpose of study, is divided into 2 bases:
Primary Source: The primary data comprises information survey of Comparative
study of consumer behavior towards Nestle and Cadbury chocolates. The data has
been collected directly from respondent with the help of structured questionnaires.
Secondary Source: The secondary data was collected from internet, References from
Library.

Data Analysis:
The data is analyzed on the basis of suitable tables by using mathematical techniques. The
technique that I have used is bar technique.

34

SCOPE OF THE STUDY

As learning is a human activity and is as natural, as breathing. Despite of the fact that
learning is all pervasive in our lives, psychologists do not agree on how learning takes place.
How individuals learn is a matter of interest to marketers. They want to teach consumers in
their roles as their roles as consumers. They want consumers to learn about their products,
product attributes, potential consumers benefit, how to use, maintain or even dispose of the
product and new ways of behaving that will satisfy not only the consumers needs, but the
marketers objectives.
The scope of my study restricts itself to the analysis of consumer preferences, perception and
consumption of Cadbury and Nestle Chocolates. There are many other brands of chocolates
available but our study is limited to two major players of chocolates leaving behind the
others. The scope of my study is also restricts itself to Chandigarh only.

35

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

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

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

People were hesitant to disclose the true facts.

36

The chance of biased response cant be eliminated though all necessary steps were
taken to avoid the same.

NEED OF THE STUDY

To get familiar with their marketing strategies separately.

37

 To view the segments being targeted by these brands in the market.

Up to what extent do the public respond to their products?
To prepare a marketing plan for any brand that is planning to enter the
India Chocolate Market.
To be a relevant guide for any brand launch in India.

OBJECTIVES OF THE STUDY

This project is based on the comparative study consumer behavior towards

Nestle and Cadbury chocolates. Objectives of the study are:

38

 The other objective is to know about the customer satisfaction

level associated with the product and the customer preference
level.
To increase customer satisfaction and recapture the market share by
fulfilling the customer needs.
To study the factors affecting the consumption pattern.

39

DATA ANALYSIS AND

INTERPRETATION

Data Analysis & Interpretation

40

Que1. Do you eat chocolate?

Yes

83%

No

17%

Analysis & interpretation:

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

Que2. Which brand of chocolate do you prefer?

Cadbury

64%

Nestle

36%
41

Analysis & interpretation:

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

Que3. Which sub-brand you have purchased?

42

Analysis & Interpretation:

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

Que4. Rank the sub-brands of chocolates according to your preference? (1 for most
preferred)

43

CADBURY

Analysis & Interpretation

In this survey I found that the most selling product is Munch the sub-brand of Nestle the
Munch has capture the 50% of the market as compared to the Cadbury product the highest
selling product of Cadbury is Dairy milk which captured the market stake of 47% which is as
compared to Much 20%less which is a good sigh for Nestle and the less consumption of the
Nestle product is Milk bar & Milk Chocolate the market share is only
3% and in Cadbury less selling product are Celebration and Temptation the reason behind this
is they are too Costly to consume. And it can only use occasionally.

Que5. How much importance do you give to the following factors when you
purchase a chocolate? (Tick in the desired column)
44

Very Imp.
Important
Normal
Least
Imp.

Taste/ Flavor
88
9
2

Price
1
3
96

Packaging
12
6
4
78

Quantity
81
12
6
1

Analysis & Interpretation:

Whenever we are consuming any food product our main focus in on the quality and price in
India there is more concentrating on the quality of product rather than other parameters of the
product in this survey I found that the basic concentration of the consumer is on taste 88%
says that they purchase if they like the taste of the product. 96% says if normal price would
be there a taste is good than price dose not matter. 78% of the consumer says that if they are
getting best quality product at nominal price than the packaging is least important. 78% says
that they are mainly seeing the quality of the product if the product is qualitative than they are
ready to pay any price for that product.

Que6. Which form of a chocolate do you like?

Hard

47%
45

Crunchy

29%

Nutties

18%

Chew

6%

Analysis & Interpretation:

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

Que7. What pack do you purchase?

Small

73%
46

Big

17%

Family Pack

10%

Analysis & Interpretation:

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

Que8. Which promotional offers attract you most?

Free Gifts

12%
47

Price Offer

84%

Any Other

4%

Analysis & Interpretation:

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

Que9.Which of these factors affects your purchase?

48

Advertisement

62%

Attractive Display

5%

Brand Ambassador

26%

Doctor Advise

0%

Ingredients

7%

Analysis & Interpretation:

There are many factors affecting at the time of purchase. So company is doing promotional
activities to acquire the desired target of the product. Basically there are six main type of the
promotional activities like 69% of the advertisement, 1% of the suggestions, 2% of the
attractive display, 0%of the doctors advice, 21% of the companies are using Brand
Ambassadors in there advertisement, 7% of the ingredients. So all this factors are affecting
the purchase.

Que10. Which media of advertisement influence your purchase?

Television

66%
49

Hoarding

6%

Newspaper

4%

Display

24%

Analysis & Interpretation:

In todays competitive market advertisement is the main tool for selling the product because
every single person is watching or reading the advertisement. So it becomes easy to make
people aware about the product. So companies are using advertisement media like 67% of the
television adds, 7% of the Hoardings, 3% of the advertisement given on local as well as
national newspapers, & 23% are using display ads.

Que11. If your preferred brand is not available for repeat purchases then what will
you do?
50

Analysis & Interpretation:

Every person is having there own taste & preferences. Some consumer are compromising
with there taste and preferences and some are not according to the survey 11% of the
consumer are postponing the purchase of the product, 40 % of the consumer are switch over
to any other product, & 49 % will search the product at any other place they dont
compromise for the same.

51

FINDINGS
AND
CONCLUSION

FINDINGS & CONCLUSIONS

CONSUMER RESEARCH
52

Consumer research deals with consumer and their problems and solution to the problems. In
this we came to know about the consumers need and expectation levels regarding products
and ascertainable levels of consumer satisfaction.
PRODUCT RESEARCH
Under product research I came to know about the modification which consumers wants
as to the quality, packing, shape, color, and quantity etc. of their favorite chocolate.
PRICING RESEARCH
This includes ability to consume, to pay for the product, how much a person can spend on
his/her favorite chocolate. In this I have tried to find out consumers price expectations
and reactions.
ADVERTISING RESEARCH
Under this I have concluded that whether the advertisement appeals the consumers or not.
This also includes evaluating and selecting the proper media-mix and measuring
advertising effectiveness.
From the one and half month experience of our research project with Consumer
preference towards Nestle and Cadbury Chocolates, We have come to know lot things
and it has enhanced our knowledge to great extent. We found many things which are well
executed by distributors. Here are some of the key findings given by us are purely based
on our research. It doesnt have any kind of bias from our side.

They are given as under:

By doing the comparison of Nestle and Cadbury chocolates, we have found that the
preference of the chocolates more preferred by the consumer is Cadbury.
From the analysis we have found that Nestls some brand has covered 50% of the
market in one product (Munch) of the chocolates which is a very good sign for the
company.
Through the research we found that consumer is very conscious about the quality of the
product in that matter they are not ready to compromise. And we found both company
product are very qualitative.
In some cases we found that if a product is not available in the market than some
consumer would to switchover to another product or brand.
So from these survey we have found that the consumption of the chocolates are more in
children and teenage group though having any occasion or not having any occasion.
The most selling product of both the companies is in small size of chocolates and there
market share is 73% because its not much costlier and is also easily available &
affordable.

53

CONCLUSION

A survey of the people has been conducted to know the liking pattern of the two products
Cadbury and Nestle. It is observed that overall people like to eat Cadbury brand rather
than Nestle. It is concluded that mostly people preferred Dairy Milk of Cadbury due to its
Flavor/taste, quality and image and due to its hard form. Some people often like to have a
Chocolate with good flavor, quality hard form. Some people often like to have a chocolate
with good flavor, quality taste and crunchiness.
It is thus concluded from the facts collected that mostly people refer to buy big pack of
their favorite chocolate, and sometimes some of them go for small and family pack.

54

RECOMMENDATIONS

55

SUGGESTIONS AND RECOMMENDATIONS

Chocolates products at Chandigarh city are available in comparison to previous years, but
still there is requirement of development in Chocolate products. Due to increasing overall
cost in Chocolate Products everywhere, cost format should be made as such that it is
affordable to each and everyone in the society. In this we also found that if the demanded
brand is not available, so at that time the customers switch over the brand of the
chocolate so, here the company should build up the healthy distribution channel by which
company can attract the customers and company loose the fear from the market.
Company should concentrate more on television for advertisement, as mostly people get
attracted through television only. For promotional offers, company should go for free gifts
rather than going for other ways. Nestle company should concentrate on its packing as
people are least satisfied with it while Cadbury should concentrate on the shape of a
chocolate. People are unsatisfied with the price and quantity of chocolate so companies
should concentrate in this regard also.

REFERENCES;
56

Web sites:
www.nestle.in
www.business-standard.com
www.cadburyindia.com
www.scribd.com
www.managementparadise.com
www.google.com

Books:
1. Marketing Management
- Philip Kotler

2. Research Methodology
- C. R. Kothari

APPENDIX

57

A STUDY OF CONSUMER PREFERENCE TOWARDS CADBURY

AND NESTLE CHOCOLATES IN CHANDIGARH
QUESTIONNAIRE
(Please tick wherever necessary)

1. Personal Profile:Name :
Address :
Age :
Between 0-10
Gender :

Male

Between10-20

Between 20-30

Above 30

Female

Educational Qualification:
Profession :
Que1. Do you eat chocolate?
Yes

No

Que2. Which brand of chocolate do you prefer?

Cadbury

Nestle

Que3. Which sub-brand you have purchased?

Cadbury
Dairy Milk
5Star
Perk
Celebrations
Temptation

Nestle
Kit Kat
Munch
Milky Bar
Bar-One
Milk Chocolate

Que4. Rank the sub-brands of chocolates according to your preference? (1 for most
preferred)
Cadbury
Nestle
Dairy Milk
Kit Kat
5Star
Munch
58

Perk
Celebrations
Temptation

Milky Bar
Bar-One
Milk Chocolate

Que5. How much importance do you give to the following factors when you purchase a
chocolate? (Tick in the desired column)
Factors
Very Important
Flavor/taste

Important

Normal

Least Important

Price
Quality
Packaging
Que6. Which form of a chocolate do you like?
Hard

Nutties

Crunchy

Chew

Que7. What pack do you purchase?

Small

Big

Family Pack

Que8. Which promotional offers attract you most?

Free gifts

Price Offer

Any other: _______________

Que9.Which of these factors affects your purchase?

Advertisement
Suggestion from friends and relatives
Attractive Display
Doctors Advice
Brand Ambassadors
Ingredients
Que10. Which media of advertisement influence your purchase?
Television

Newspapers Brochures

Hoarding Display

Que11. If your preferred brand is not available for repeat purchases then what will you
do?
Postpone your purchase
Switch over to other brand
Go to the other shop to search for your preferred brand
59

Que12. Do you feel that the product characteristics match with those mentioned in the
advertisement?
Yes

No

YOUR SUGGESTIONS:

..

THANK YOU

60