ACKNOWLEDGEMENT
Preparing a project of this nature is an arduous task and I was fortunate
enough to get support from a large number o persons. I wish to express my
deep sense of gratitude to all those who generously helped in successful
completion of this report by sharing their invaluable time and knowledge.
2
MOHD. ASIF
MBA IST SEM.
I declare that the project report titled " MARKETING STRATEGY OF TOP
FIVE BRANDS OF CHOCOLATES." on Market Segmentation is nay own work
conducted under the supervision of MISS RITU KHATRI
Department of
3
Management Studies, SVNU, SAGAR To the best of my knowledge the report does
not contain any work , which has been submitted for the award of any degree ,
anywhere.
MOHD. ASIF
MBA IST SEM.
CERTIFICATE
The project report titled " MARKETING STRATEGY OF TOP FIVE
BRANDS OF CHOCOLATE" been prepared by MOHD. ASIF
MBA IST
4
SEM., under the guidance and supervision of MISS RITU KHATRI for the
partial fulfillment of the Degree of MBA.
Signature of the
Signature of the
Signature of the
Supervisor
Examiner
CONTENTS
PREFACE
ACKNOWLEDGEMENT
CERTIFICATE
DECLARATION
CHAPTER I INTRODUCTION
ABOUT PROJECT
5
INTRODUCTION
In this research I have surveyed the product performance and buying behavior
of the famous brands of chocolates Nestle,Cadbury and Amul,which are
consumed by people of all ages. During this research I have interacted with
people of kolkataat different areas.After this research I came to know how
people perceives these products on the variables like price,quality,
6
tropical Theobroma cacao tree. Cacao has been cultivated for at least three
millennia inMexico, Central America and Northern South America. Its earliest
documented use is around 1100 BC. The majority of the Mesoamerican people
made chocolate beverages, including the Aztecs, who made it into a beverage
known as xocoltl [o'kolat], aNahuatl word meaning "bitter water". The seeds of
the cacao tree have an intense bittertaste, and must be fermented to develop the
flavor.
After fermentation, the beans are dried, then cleaned, and then roasted, and the
shell is removed to produce cacao nibs. The nibs are then ground to cocoa mass,
pure chocolate in rough form. Because this cocoa mass usually is liquefied then
molded with or without other ingredients, it is called chocolate liquor. The liquor also
may be processed into two components: cocoa solids and cocoa butter.
Unsweetened baking chocolate (bitter chocolate) contains primarily cocoa solids
and cocoa butter in varying proportions. Much of the chocolate consumed today is in
the form of sweet chocolate, combining cocoa solids, cocoa butter or other fat, and
sugar. Milk chocolate is sweet chocolate that additionally contains milk powder or
condensed milk. White chocolatecontains cocoa butter, sugar, and milk but no
cocoa solids.
Cocoa solids contain alkaloids such as theobromine and phenethylamine, which
have physiological effects on the body. It has been linked to serotonin levels in the
brain. Some research found that chocolate, eaten in moderation, can lower blood
pressure.[1] The presence of theobromine renders chocolate toxic to some animals,
[2]
especially dogs and cats.
Chocolate has become one of the most popular food types and flavors in the world.
Gifts of chocolate molded into different shapes have become traditional on certain
7
holidays: chocolate bunnies and eggs are popular on Easter, chocolate coins
on Hanukkah, Santa Clausand other holiday symbols on Christmas, and
chocolate hearts or chocolate in heart-shaped boxes on Valentine's Day. Chocolate
is also used in cold and hot beverages, to produce chocolate milk and hot
chocolate.
Cocoa mass was used originally in Mesoamerica both as a beverage and as an
ingredient in foods. Chocolate played a special role in both Maya and Aztec royal
and religious events. Priests presented cacao seeds as offerings to the deities and
served chocolate drinks during sacred ceremonies. All of the areas that were
conquered by the Aztecs that grew cacao beans were ordered to pay them as a tax,
or as the Aztecs called it, a "tribute".[3]
The Europeans sweetened and fattened it by adding refined sugar and milk, two
ingredients unknown to the Mexicans. By contrast, the Europeans never infused it
into their general diet, but have compartmentalized its use to sweets and desserts.
In the 19th century, Briton John Cadbury developed an emulsification process to
make solid chocolate, creating the modern chocolate bar. Although cocoa is
originally from the Americas, today Western Africa produces almost two-thirds of the
world's cocoa, with Cte d'Ivoire growing almost half of it.
History
Mesoamerica history
Chocolate has been used as a drink for nearly all of its history. The earliest record of
using chocolate dates back before the Olmec. In November 2007, archaeologists
reported finding evidence of the oldest known cultivation and use of cacao at a site
in Puerto Escondido,Honduras, dating from about 1100 to 1400 BC.[9] The residues
found and the kind of vessel they were found in indicate the initial use of cacao was
not simply as a beverage, but the white pulp around the cacao beans was likely
8
used as a source of fermentable sugars for an alcoholic drink. [9] The Maya
civilization grew cacao trees in their backyards, [10] and used the cacao seeds it
produced to make a frothy, bitter drink. [11] Documents in Maya hieroglyphsstated
chocolate was used for ceremonial purposes, in addition to everyday life. [12] The
chocolate residue found in an early ancient Maya pot in Ro Azul, Guatemala,
suggests the Maya were drinking chocolate around 400 AD.
The sweet chocolate residue found in jars from the site of Puerto Escondido in
Honduras from around 1100 BC is the earliest found evidence of the use of cacao to
date.[13] An early Classic (460480 AD) period Mayan tomb from the site of Rio Azul,
Guatemala, had vessels with the Maya glyph for cacao on them with residue of a
chocolate drink.[14] The Maya are generally given credit for creating the first modern
chocolate beverage over 2,000 years ago, despite the fact that the beverage would
undergo many more changes in Europe.[15]
By the 15th century, the Aztecs gained control of a large part of Mesoamerica, and
adopted cacao into their culture. They associated chocolate with Xochiquetzal, the
goddess of fertility,[16] and often used chocolate beverages as sacred offerings.
[14]
The Aztec adaptation of the drink was a bitter, frothy, spicy drink called xocolatl,
made much the same way as the Mayan chocolate drinks. It was often seasoned
with vanilla, chile pepper, and achiote, and was believed to fight fatigue, which is
probably attributable to the theobromine content, a mood enhancer. Because cacao
would not grow in the dry central Mexican highlands and had to be imported,
chocolate was an important luxury good throughout the Aztec empire, and cocoa
beans were often used as currency.[17] For example, the Aztecs used a system in
which one turkey cost one hundred cacao beans and one fresh avocado was worth
three beans.[18] South American and European cultures have used cocoa to treat
diarrhea for hundreds of years. [19] All of the areas ruled by the Aztecs were ordered
to pay a tax, leading those that grew the beans to offer cacao seeds as tribute. [20]
European adaptation
See also: History of chocolate in Spain
Chocolate soon became a fashionable drink of the nobility after the discovery of the
Americas. The morning chocolateby Pietro Longhi; Venice, 17751780.
The
first
European
contact
with
chocolate
introduced Hernn
came
Corts,
Spanish conquistador, to xocolatl in the 16th century.[14] Antonio de Sols, Philip IV's
official Chronicler of the Indies, described Montezuma customarily taking a
chocolate beverage after meals, as part of a sumptuous daily ritual:
He had Cups of Gold, and Salvers of the same; and sometimes he drank out of
Cocoas [i.e., coconut shells], and natural Shells, very richly set with Jewels.
[...] When he had done eating, he usually took a Kind of Chocolate, made
after the Manner of the Country, that is, the Substance of the Nut beat up with
the Mill till the Cup was filled more with Froth than with Liquor; after which
he used to smoak Tobacco perfum'd with liquid Amber.[21]
Jose de Acosta, a Spanish Jesuit missionary who lived in Peru and then Mexico in
the later 16th century, wrote of it:
Loathsome to such as are not acquainted with it, having a scum or froth that is
very unpleasant taste. Yet it is a drink very much esteemed among the
Indians, where with they feast noble men who pass through their country. The
Spaniards, both men and women that are accustomed to the country are very
10
greedy of this Chocolate. They say they make diverse sorts of it, some hot,
some cold, and some temperate, and put therein much of that "chili"; yea, they
make paste thereof, the which they say is good for the stomach and against
the catarrh.[22]
The first recorded shipment of chocolate to Europe for commercial purposes was in
a shipment from Veracruz to Sevilla in 1585.[16] It was still served as a beverage, but
the Europeans added cane sugar to counteract the natural bitterness and removed
the chili pepper while retaining the vanilla, in addition they added cinnamon as well
as other spices.[14]
What the Spaniards then called "chocolatl" was said to be a beverage consisting of
a chocolate base flavored with vanilla and other spices that was served cold. [23]
[24]
Montezuma's court reportedly drank about 2,000 cups of xocolatl per day, 50 of
The situation was different in England. Put simply, anyone with money could buy
it.[29] The first chocolate house opened in London in 1657. [29] In 1689, noted
physician
and
in Jamaica which
collector Hans
was
initially
Sloanedeveloped
used
by apothecaries,
milk
but
chocolate
later
drink
sold
to
Industrial Revolution that these mills were put to bigger use. Not long after the
revolution cooled down, companies began advertising this new invention to sell
many of the chocolate treats we see today. [32] When new machines were produced,
people began experiencing and consuming chocolate worldwide. [33]
At the end of the 18th century, the first form of solid chocolate was invented
in Turin by Doret. This chocolate was sold in large quantities from 1826 by Pierre
Paul Caffarel in Italy. In 1819, F. L. Cailler opened the first Swiss chocolate factory.
In 1828, DutchmanCoenraad Johannes van Houten patented a method for
extracting the fat from cocoa beans and making powdered cocoa and cocoa butter.
Van Houten also developed the "so-called" Dutch process of treating chocolate
with alkali to remove the bitter taste. This made it possible to form the modern
chocolate bar. The German company Jordan & Timaeus sold the first known
chocolate bar made from cocoa, sugar and goat's milk in 1839. [34] In England, the
company, J. S. Fry & Sons discovered a way to mix some of the cocoa butter back
into the Dutched chocolate, and added sugar, creating a paste that could be
moulded. This led to the first British chocolate bar in 1847, followed in 1849 by
the Cadbury brothers.
In 1865, an unknown employee at the Ghirardelli Chocolate Company discovered
the Broma process of separating cocoa butter from cocoa solids (namely, that if
chocolate is hung in a bag in a warm room, the butter will drip out naturally over
time).
Daniel Peter, a Swiss candle maker, joined his father-in-law's chocolate business. In
1867, he began experimenting with milk as an ingredient. He brought his new
product, milk chocolate, to market in 1875. He was assisted in removing the water
content from the milk to prevent mildewing by a neighbour, a baby food
manufacturer
named Henri
Nestl.
Rodolphe
Lindt
invented
the
process
calledconching, which involves heating and grinding the chocolate solids very finely
to ensure that the liquid is evenly blended. This enabledMilton Hershey to make
chocolate even more popular by mass producing affordable chocolate bars.
Types
Main article: Types of chocolate
12
Chocolate is commonly used as a coating for various fruits and fillings, such ascherries.
Disk of chocolate (about 4cm in diameter), as sold in Central America, for making hot cocoa.
Note that the chocolate pictured here is soft, can easily be crumbled by hand, and already has
sugar added.
Chocolate
which have some physiological effects in humans, but the presence of theobromine
renders it toxic to some animals, such as dogs and cats. [36] It has been linked to
serotonin levels in the brain. Dark chocolate has been promoted for unproven health
benefits[37], as it seems to possess substantial amount of antioxidants that reduce
the formation of free radicals.
White chocolate is formed from a mixture of sugar, cocoa butter and milk solids.
Although its texture is similar to milk and dark chocolate, it does not contain any
cocoa solids. Because of this, many countries do not consider white chocolate as
chocolate at all.[38] Although first introduced by Hebert Candies in 1955, Mars,
Incorporated was the first to produce white chocolate within the United States.
Because it does not contain any cocoa solids, white chocolate does not contain any
13
some
sugar
(typically
third),
more
cocoa
butter,
vanilla
and
sometimes lecithin have been added. It has less sugar and more liquor than
semisweet chocolate, but the two are interchangeable in baking.
Unsweetened chocolate is pure chocolate liquor, also known as bitter or baking
chocolate. It is unadulterated chocolate: the pure, ground, roasted chocolate beans
impart a strong, deep chocolate flavor.
Raw chocolate, often referred to as raw cacao, is always dark and a minimum of
75% cacao. Because the act of processing results in the loss of certain vitamins and
minerals (such as magnesium), some consider raw cacao to be a more nutritious
form of chocolate.[40]
Some people who purchase chocolate off the store shelf can be disappointed when
they see whitish spots on the dark chocolate part. This is called chocolate
bloom and is not an indication of chocolate gone bad. Instead, this is just an
indication that sugar and/or fat has separated due to poor storage.
14
15
RESEARCH METHODOLOGY
According to Green and Tall A research design is the specification of
the methods and procedures for acquiring the information needed. It is the
overall operational pattern or framework of the project that stipulates which
information is to be collected, from where it is to be collected and by what
procedures
16
This research process based on primary data analysis and secondary data
analysis will be clearly defined to meet the objectives of the study.
I chose the primary sources to get the data. A questionnaire was designed
in accordance with our mentor in Chocolate. I chose a sample of about
30 corporate customers
I collected some data from the secondary sources like published
Company documents, internet etc.
Research Design
A research design is the arrangement of conditions for collections and analysis
of data in a manner that aims to combine relevance to the research purpose with
economy in procedures. It is a descriptive cross sectional design .It is the
conceptual structure with in which research is conducted; it constitutes the
blueprint for the collection, measurement and analysis of data.
It is needed because it facilitates the smooth sailing of the various research
operations, thereby making research as efficient as possible yielding maximal
information with minimal expenditure of effort, time and money.
In the preliminary stage, my research stage constituted of exploratory study
by which it is clear that the existence of the problem is obvious .So, I can
directly head for the conclusive research.
Sampling Plan
Sampling plan is a distinct phase of research process. In this stage I have to
determine who is to be sampled, how large should be the needed sample and
how sampling unit is to be selected.
Population
In my research, I have defined my population as a complete set of customers of
Sagar City.
Sample Survey
17
CONSUMER BEHAVIOUR
All marketing starts with the consumer. So consumer is a very important person
to a .marketer. Consumer decides what to purchase, for whom to purchase, why
to purchase,from where to purchase, and how much to purchase. In order to
become a successfulmarketer, he must know the liking or disliking of the
customers. He must also know the Time and the quantity of goods and services,
a consumer may purchase, so that he may store the goods or provide the
18
PRODUCT PROFILE
Cadbury
19
over
the
business
in
1861,
John
Cadbury's
sons Richard and George decided in 1878 that they needed new premises.
20
Better transport access for milk that was inward shipped by canal, and cocoa
that was brought in by rail from London, Southampton and Liverpool docks
was taken into consideration. With the development of the Birmingham West
Suburban Railway along the path of theWorcester and Birmingham Canal, they
acquired the Bournbrook estate, comprising 14.5 acres (5.9 ha) of countryside 5
miles (8.0 km) south of the outskirts of Birmingham. Located next Stirchley
Road railway station, which itself was opposite the canal, they renamed the
estate Bournville and opened the Bournville factory the following year.
In 1893, George Cadbury bought 120 acres (49 ha) of land close to the works
and planned, at his own expense, a model village which would 'alleviate the
evils of modern more cramped living conditions'. By 1900 the estate included
313 cottages and houses set on 330 acres (130 ha) of land. As the Cadbury
family were Quakers there were no pubs in the estate;[7] in fact, it was their
Quaker beliefs that first led them to sell tea, coffee and cocoa as alternatives to
alcohol.[8]
Nestl
Nestl S.A. is a Swiss multinational nutritional, snack food, and healthrelatedconsumer goods company headquartered in Vevey, Switzerland. It is the
largest food company in the world measured by revenues.[3][4]
Nestl's products include baby food, bottled water, breakfast cereals, coffee,
confectionery, dairy products, ice cream, pet foods and snacks. 29 of Nestl's
brands have annual sales of over 1 billion Swiss francs (about $ 1.1 billion), [3]
[5]
and Maggi. Nestl has around 450 factories, operates in 86 countries, and
employs around 328,000 people. It is one of the main shareholders of L'Oral,
the world's largest cosmeticscompany.[6]
21
Nestl was formed in 1905 by the merger of the Anglo-Swiss Milk Company,
established in 1866 by brothers George Page and Charles Page, and Farine
Lacte Henri Nestl, founded in 1866 by Henri Nestl. The company grew
significantly during the First World War and again following the Second World
War, expanding its offerings beyond its early condensed milk and infant
formula products. The company has made a number of corporate acquisitions,
including Crosse
&
Blackwell in
1950, Findus in
1963,Libby's in
The company owns a major subsidiary in the United States, (Perfetti Van Melle
USA), as well as several others in large markets around the world.
Parle Agro
From Wikipedia, the free encyclopedia
Parle Agro is an Indian private limited company that owns several popular
brands including Frooti, Appy, LMN, Hippo and Bailley.
Several
Parle
soda
brands
Spot and Maaza were sold to Coca Cola in 1993 for a reported $40 million.[1]
[2]
At the time of sale, the Parle brands together had a 60% market share in the
industry.[3] The brand was strong in South India.[4] Citra was phased out by
2000 to make way for Coke's international brand,Sprite.[5]
23
History
Parle Products was founded in 1929 in British India. It was owned by
the Chauhan family of Vile Parle, Mumbai. The Parle brand became well
known in India following the success of products such as the Parle-G biscuits
and Thums Up soft drink.
The original Parle company was split into three separate companies owned by
the different factions of the original Chauhan family:[6]
Parle Products, led by Vijay, Sharad and Anup Chauhan (owner of the
brands Parle-G, Melody, Mango Bite, Poppins, Monaco and KrackJack)
Parle Agro, led by Prakash Chauhan and his daughters Schauna, Alisha
and Nadia (owner of the brands such as Frooti and Appy)
All three companies continue to use the family trademark name "Parle".
24
AMUL CHOCOLATE
25
Amul
This article is about the Indian dairy cooperative. For the ancient city of
mul along the Oxus, see Trkmenabat. For the city in Iran, see Amol.
The Amul Plant at Anand featuring the Milk Silos
Amul is an Indian dairy cooperative, based at Anand in the state
of Gujarat,
India.[2] The
word Amulis
derived
from
26
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.
MARKETING STRATEGY
27
PRODUCT:
Satisfaction suffices. But delight dazzles the average company will compete for
customer byconforming to her expectation consistently. But the winner will
surpass them by constantlyexceeding her expectation, delivering to her door
step additional benefits which she would never have imagined possible.
Cadburys offer such product. The wide variety products offered by thecompany
include
PRICING
Second P of marketing is not another name for blindly lowering prices and
relying on thisstrategy alone to increase sales dramatically. The strategy used
by Cadburys is for matching thevalue that customer pays to buy the product
with the expectation they have about what the production is worth to them.
AMUL has launched various products which cater to all customer segments.
So everycustomer segment has different price expectation from the product.
Thereforemaximizing the returns involves identifying right price level for each
segment, and then progressively moving through them.
Place
In a product and price parity situation, the brand that sells more is the one that
reaches thehighest number of customers. India 1 billion people, 155 million
household has over 4 millionretail outlets in 5351 urban markets and 552725
villages, spread cross 3.28 million sq.
Promotion
If an advertisement is to communicate effectively, the receiver must at least
half want it to, and be prepared too take step toward the sender. Effective
advertising is rarely hectoring or loudlyexplicit. It often both attracts and
generates arm feelings. More often than not, a successfulcampaign has a
stronger element of the unexpected a quality that good advertising shares
28
\
DATA ANALYSIS AND INTERPRETATION
Que1. Do you eat chocolate?
29
Yes
83%
No
17%
64%
30
Nestle
36%
31
32
CADBURY
Taste/ Flavor
Quantity
Very Imp.
88
Important
9
Normal
2
Least
Imp.
1
Price
Packaging
1
3
96
12
6
4
81
12
6
78
47%
34
Crunchy
29%
Nutties
Chew
18%
6%
73%
35
Big
17%
Family Pack
10%
12%
36
Price Offer
84%
Any Other
4%
62%
37
Attractive Display
5%
Brand Ambassador
26%
Doctor Advise
0%
Ingredients
7%
66%
38
Hoarding
6%
Newspaper
4%
Display
24%
Que11. If your preferred brand is not available for repeat purchases then
what will
you do?
39
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
41
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.
BIBLIOGRAPHY
REFERENCES
Web sites:
www.nestle.in
www.business-standard.com
42
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
QUESTIONNAIRE
(Please tick wherever necessary)
1. Personal Profile:Name :
Address :
43
Age :
Between 0-10
Between10-20
Between 20-30
Above 30
Gender :
Male
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
Nestle
Dairy Milk
Kit Kat
5Star
Perk
Munch
Milky Bar
Celebrations
Bar-One
Female
Temptation
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
Perk
Milky Bar
Celebrations
Bar-One
Temptation
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
Normal
Least
Flavor/taste
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?
44
Free gifts
Price Offer
Any other: ___________
Que9. Are you influenced by advertisements to buy or change a particular
brand of chocolate?
Yes
No
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 other shop to search for your preferred brand
Que12. Do you feel that the product characteristics match with those mentioned
in the advertisement?
Yes
No
Que13. Any Suggestions if you want to give us:
_______________________________________________________________
_______________________________________________________________
_________________
45