Comparative Study

CADBURY V/S NESTLE

The project puts a light on the comparison between the two most famous and popular chocolate brand in INDIA. Presented by POOJA RANGANATHAN 9/24/2009

PROJECT MEMBER:
Name: Pooja Ranganathan Class: B.M.S Roll No: 17

INDEX

PAGE NO:

Acknowledgement..............................4 Introduction....5 Evolution.7 Cadbury8 Table of Contents......................9-18 Nestle ....19 Table of Contents.20-21 Comparison.26-27 The Better One..28 Consumer feedback ..29

Acknowledgement
I, Pooja Ranganathan, thank my faculty Ms. Tejashree Medhekar (B.M.S), for giving me an opportunity to come up with this project. Its been a wonderful experience getting the nutritional information about the two most renowned chocolate brands in India. It allows me a detailed study on the factors which leads to the birth, the survival and the impression of these two

competiting rival brands, on the Indian market and on the Indian population.

INTRODUCTION:
People around the world have grown up enjoying

chocolate as a favourite treat for countless generations. Its the first edible thing which comes to our minds when we are happy because it makes us enjoy the taste of happiness with a mix blend of chocolate and also when we are sad as its a very good anti-depressant. But just how much does the average person really know about the potential benefits, beyond the great taste, that chocolate and its key ingredient- cocoa provides?

We all know that a bit of chocolate tends to make us feel good, but a wealth of research suggests that people can now have even more reasons to enjoy it. The last decade has seen a significant increase in the research and understanding of cocoa and chocolate. But

understanding the properties of chocolate is not just a recent development. For centuries, civilizations from

Mexico to Europe have recognized the benefits of cocoa and chocolate for medicinal and therapeutic uses as well as a food, beverage or treat. It has even been hailed as a reason to smile!

EVOLUTION:
Cocoa, from which chocolate is created, is said to have originated in the Amazon at least 4,000 years ago. Chocolate, derived from the seed of the cocoa tree, was used by the Maya Culture, as early as the Sixth Century AD. Maya called the cocoa tree cacahuaquchtl "Tree and the word chocolate comes from the Maya

word xocoatl which means bitter water. Chocolate has an antioxidant power which helps to reduce blood pressure and improves health. It is also used to boost brain power. As already mentioned above, it helps during mood swings from sad to happy in a matter of a second or two. Eating chocolate benefits the teeth (tannins in cocoa helps in avoiding plague formation), brain (endorphins in cocoa helps in boosting mental performance), throat (helps stopping circulation persistent (reduces cough), mild heart (antioxidants), and blood

hypertension

pressure in adults) and bones (contains calcium which helps in the formation of bones). The first chocolate house to the world was started in 1657 in London by a Frenchman.

Cadbury

Slogan:

The Real Taste of Life Kuch Meetha Ho Jaaye

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EVOLUTION OF CADBURY:
Cadbury started business in 1948 in India. The company was incorporated in the name Cadbury-Fry (India) Pvt. Ltd. The founder of the famous CADBURY company was John Cadbury in Birmingham, U.K in 1824. In 1824, John Cadbury began vending tea, coffee, and (later) chocolate at Bull Street in Birmingham in the UK and sometimes in India. The company was later known as "Cadbury Brothers Limited" The current Managing Director of the Cadbury Company in India is Mr. Rajiv Bakshi. Cadbury Indias first manufacturing in 1966. and facility Today was the set up in has Thane grown of

(Mumbai)

company a wide

magnificently

manufactures

range

products like Cadbury Dairy Milk, 5 Star, Nutties, Gems, Bournvita, Perk, clairs etc. it has been awarded the Consumer India. Superbrand for 2006-07 by Superbrands

PRODUCTS:
The story of Cadbury Dairy Milk started way back in 1905 at Bourneville, U.K., but the journey with chocolate lovers in India began in 1948. The pure taste of Cadbury Dairy Milk is the taste most Indians crave for when they think of Cadbury Dairy Milk. 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 children, teens & adults. Recently, Cadbury Dairy Milk Desserts was launched, specifically to cater to the urge for 'something sweet' after meals. KUCH MEETHA HO JAYE Cadbury Dairy Milk has exciting products to offer Cadbury Dairy Milk Wowie, its a chocolate with Disney characters embossed in it-much for the schooling kids,

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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. The Cadbury brand has launched many products among which the Cadbury Temptations are too tempting to resist. As the name says its inevitably tempting and also a massive hit among the people of various age groups but more prominently among school going kids and

teenagers. This product mainly comes into the spotlight during festive seasons and occasions. The companys brand ambassador Mr. Amitabh Bacchan promotes the brand during occasions like Diwali, Raksha Bandhan etc in order to rope in the population and leave them sweet-toothed after having eaten the forever sweet taste of chocolate so as to increase the demand and craveness towards the chocolate brand. In the 1990s Cadbury was meant to be a Just for kids product but as the course of time the focus shifted towards the statement There is a kid in all of us.

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It appealed to the child in every adult. Cadbury is the perfect expression of spontaneity and shared good

feelings. Its a perfect way to celebrate success, achievement and happiness so; the company started a campaign with the street language Pappu Pass Ho Gaya for this purpose. The Pappu pass ho gaya campaign fetched the Effie awards in the year 2006. The latest to its campaign of advertisement is Khush hain Zamana Aaj Pehli Tareek which actually hints to all those people who receive their salaries for a month and would want to treat themselves with a sweet delicacy.

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ADVERTISING AND SALES PROMOTION:

The slogans of advertising are the tools of sales promotion and are very important in order to attract the customer to purchase the product. The company introduced and launched its products with well furnished and meaningful advertising slogans like:

The Real Taste of India (DAIRY MILK) Thodi si Paet Pooja Kabhi Bhi Kahin Bhi (PERK) Whenever On Hunger Strike (PERK) Tan Ki Shakti Mann Ki Shakti (BOURNVITA) Kuch Zyaada Hi Solid (PICNIC) Yeh Chocolate Khae Aur Aap Inhe Khae (ECLAIRS) Thandi saas ka blast (HALLS)

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MARKET SHARE AND NET SALES:

Cadbury Dairy Milk has been the market leader in the chocolate category for years since 1824. 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. The turnover of this successful brand today stands at 450crores. Cadburys market share is currently at 70.4%. The net profit was seen at 28% for fy08.

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INGREDIENTS:
Cadbury Dairy Milk contains ingredients Milk, Sugar, Cocoa Mass, Cocoa Butter, -Full Cream Milk Solids,

Vegetable Fat, Emulsifiers (Soya Lecithin, 476), Flavours. It May contain traces of Nuts. Milk Chocolate contains Cocoa Solids 21%, Milk Solids 28%. The nutritional value per 100g is as follows- Energy 558kj, Protein 2g, Fat 7.4g, Saturated fat 4.5g, Carbohydrates 14.5g, Sugar 14.1g and Sodium 21mg. These key ingredients help in maintaining a balanced diet.

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TARGET AUDIENCES:
The target audiences are mostly the young generation from the age group of 4 to 25. The maximum number of chocolate eaters is from this group. The variety and flavours are so yummy that when one pops it into ones mouth one gets a heady feeling of goodness and power. When the oldies munch it they are transported to the world of childhood. There are many flavours which cater to the taste buds of every individual. The brand Cadbury targets every age group possible by launching new

products and services so as to provide the best taste and quality. Its the favourite toffee when it comes to popping in a chocolate. The brand is very popular among school going kids as its their reason to relish the ever relishing power of Cadbury chocolates. The brand is in more demand among them because its a part of their breakfast, lunch and dinner without which their day never starts and night never ends!

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PACKAGING:
After the setback, due to worms found in its range of chocolate products in October 2003, Cadbury started new packaging innovations so as to provide safe and

infestation free products to consumers.

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The packaging of Cadbury chocolates have gone through many stages of finest packing from the early 1980s to the latest 2004.

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Nestle

Slogan:

Good Food, Good Life Delight In Every Bite

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EVOLUTION:
Nestle India Ltd started business on 28th March 1959 and was incorporated in New Delhi. The company was

promoted by the Nestle SA of Switzerland. The founder of Nestle Company was Henri Nestle in Switzerland in 1867. The current Managing Director of Nestle India Ltd is Mr. Martial G. Rolland. Its first factory in India was setup in 1961 at Moga in Punjab for manufacturing milk products, infant milk food and weaning cereals culinary products and beverages. It is amongst Indias Most Respected Companies and amongst the Top Wealth creators of India.

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PRODUCTS:
The story of Nestle chocolates dates back to the Second World War. Nestle chocolates are available in the

following brands-Kit-Kat, Kit-Kat chunky, Munch Pop Choc, Munch, Milkybar, Milkybar clairs, Milkybar Choo Bar-One, Polo, clairs, Milk Chocolate and Selections. Nestle India manufactures products of truly International quality under brand names such as milkmaid, everyday, Cerelac, Lactogen, Maggi, Nescafe, Nescafe sunrise, Nestea, Milo, Nestle milk, Nestle dahi, Nestle fruit n milk and Nestle fruit n dahi. Company has launched a range of gift packs under the Fox confectionery brand name for festive seasons i.e. Nestle Selections. Nestle India is a vibrant company that provides consumers in India with products of global standards and is committed to longterm sustainable growth and shareholder satisfaction.

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ADVERTISING AND SALES PROMOTION:

The sale of a product depends upon the advertising and promotion of its sales. The brand ambassador is currently Rani Mukerjee who endorses its chocolate product Munch and Munch Pop-Choc. Kit-Kat which was launched a few years ago was the largest consumed product among the Nestls bag of chocolates. It was an instant hit among all the age group due its crisp nature. NESTL KITKAT has a unique finger format with a breaking' ritual

attached to it. NESTL KITKAT is one of the most successful brands in the world and every year over 12 billion NESTL consumers. As always slogans play a vital role in the promotion of a product. Nestle has its own attention seeking slogans which are as followsMera Munch Mahan (Munch) Have a break, Have a KIT-KAT (Kit-Kat) Dum Hain Toh Bahar Nikhal (Milkybar) The Mint with the Hole (POLO) Rolling Chewing and Phisloing (Nestle clairs)

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MARKET POSTION AND NET SALES:

Nestle has been in the Indian markets since 1959 and had currently achieved a 21% profit from the sales in the financial year 2008. The market share of Nestle in the Indian market is 29%. Today, Nestle holds 15% value share of the Indian

chocolate market. The turnover of this successful brand today stands at 390crores. The net sales in fy08 were seen at 23.4% with the net profit emerging out to be 24.1%.

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INGREDIENTS:
The basic composition of chocolate is mixture of cocoa products, milk and sugar bound together with an

emulsifier. It consists of whole milk powder, skimmed milk powder, milk fat, whey powder, lactose powder, or milk protein. Soy-based lecithin is then used to emulsify the ingredients. The nutritional information per 100g is as follows- energy 420kj, proteins 2.8g, carbohydrate 16.5g, fat 2.5g, saturates fat 1.5g, fibre 0.2g, sodium trace and salt equivalent trace.

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TARGET AUDIENCES:
The Nestle brand of chocolates generally caters to the younger generation in the age group of 4 to 16. Its milky taste is a hit among the school going kids. Parents love to treat their children with this product because the taste is friendlier to kids than to the older generation. Nestle is actually a milk chocolate and hence its milky ingredients helps in proper growth and concentration in children. It helps in boosting of energy to carry on any outdoor activity. Kit-Kat and Munch is the single pair product which has been the star of Nestls brand of chocolates and is being consumed by many teenagers and adults even today. The number consumers depend upon the taste of the product. The taste one relishes is different for the other. The delight in every bite cannot be same for all the consumers.

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COMPARISON:
 If we compare the icon Amitabh Bacchan endorsing Cadbury to Rani Mukerjees nestle endorsement,

Amitabh being an icon has got world wide fame compared to that of the bubbly actress. So Cadbury is more famous as it is endorsed by the icon himself.  Cadbury is the number one brand in the Indian market. However Nestle has still not made an

impression or mark in the Indian market among the population when it comes to its chocolate products.  The profits and turnover of Cadbury was seen at 450crs at the previous financial year which was much more that that of Nestls 350 crores. Cadbury shares 70% in the market share while the market of Nestle is around 29% which is half than that of Cadbury.  Cadbury enjoys 30% value share compared to that of 15% market share of Nestle.  Though the chocolates are made out of milk and other ingredients people still call it by the name Cadbury though it is a brand name. Nestls

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chocolates are also delicious but the brand Cadbury has been impressed in the minds in such a way that when people go to the shops asking for milk chocolates they ask for Cadbury which is a brand name. So the shopkeeper thinks the customer is asking for the Cadbury brand and does not offer Nestle.  Nestle being comparatively a new product in the Indian markets, it will take some time for it to heat up the competition and match its position with the Cadbury brand.  Moreover the flavours and products are comparatively less. Hence it does not seem to be noticed in the market when surrounded by the Cadbury brand.  There is a slight difference in the taste of both the chocolates so it will take time for the people to get accustomed to the new taste of Nestle, just like a person always compares the food which he eats with that of the food served by his mother since he is accustomed to her cooking taste.

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WHICH IS THE BETTER ONE?

Keeping products, in mind the comparison is much between in these two and

Cadbury

brand

demand

consumed by the population in large numbers all over. The number of products and quality packaging makes it the most trusted brand. Its the number one brand and has been also awarded the best brand in the financial year 2008.

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CONSUMER FEEDBACK:
According to some consumers Cadbury leaves a sticky taste in the mouth compared to the crisp chocolates of Nestle like Kit-Kat and Munch. Consumers vote in favour of Cadbury chocolates because it has a variety of flavours compared to Nestle. The majority of consumers feel

Cadbury has better taste and quality compared to any other chocolate brand in India. Cadburys two packaging makes the product safe and hygienic for consumption. Around 78% of the population vote for Cadbury and feel it is the safest product when it comes to buying chocolates.

(.Thank you..............)

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