Nestle Chocolate

7/24/2019 Nestle Chocolate

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CHAPTER-I

INTRODUCTION

Consumer behavior is the study of how people buy, what they buy, when they buy and why they buy. It blends elements from psychology, sociology,

sociopsychology, anthropology and economics. It attempts to understand the buyer

decision processes |buyer decision making process, both individually and in groups. It

studies characteristics of individual consumers such as demographics,

psychographics, and behavioral variables in an attempt to understand people's wants.

It also tries to assess influences on the consumer from groups such as family, friends,

reference groups, and society in general.Belch and Belch define consumer behavior as 'the process and activities people

engage in when searching for, selecting, purchasing, using, evaluating, and disposing

of products and services so as to satisfy their needs and desires'.

Basic model of consumer decision making also referred to as EB model !Engel"

ollat # Black$ell" %&'&(

)tage Brief descri*tion

Pro+lem recognition

The consumer perceives a need and

becomes motivated to solve a problem. otivation

Information searc,The consumer searches for information

re!uired to make a purchase decision"erception

Information

ealuation

The consumer compares various brands and

products

#ttitude

formation

DecisionThe consumer decides which brand to

purchaseIntegration

Post-*urc,ase

ealuation

The consumer evaluates their purchase

decision

$earning

.Consumer Be,aior and /arketing )trateg0.

The study of consumers helps firms and organi%ations improve their marketing

strategies by understanding issues such as how

• The psychology of how consumers think, feel, reason, and select between

different alternatives &e.g., brands, products(

• The psychology of how the consumer is influenced by his or her environment

&e.g., culture, family, signs, media(

)



• The behavior of consumers while shopping or making other marketing decisions(

• $imitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome(

•

*ow consumer motivation and decision strategies differ between products thatdiffer in their level of importance or interest that they entail for the consumer( and

• *ow marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer.

+nderstanding these issues helps us adapt our strategies by taking the

consumer into consideration. or e-ample, by understanding that a number of

different messages compete for our potential customers attention, company learnt that

to be effective, advertisements must usually be repeated e-tensively. Company also

learn that consumers will sometimes be persuaded more by logical arguments, but at

other times will be persuaded more by emotional or symbolic appeals. By

understanding the consumer, Company will be able to make a more informed decision

as to which strategy to employ.

/ne 0official0 definition of consumer behavior is 0The study of individuals, groups, or

organi%ations and the processes they use to select, secure, use, and dispose of

products, services, e-periences, or ideas to satisfy needs and the impacts that these

processes have on the consumer and society.0 #lthough it is not necessary to

memori%e this definition, it brings up some useful points1

• Behavior occurs either for the individual, or in the conte-t of a group &e.g., friends

influence what kinds of clothes a person wears or an organi%ation &people on the

2ob make decisions as to which products the firm should use.

• Consumer behavior involves the use and disposal of products as well as the study

of how they are purchased. "roduct use is often of great interest to the marketer,

because this may influence how a product is best positioned or how company can

encourage increased consumption. 3ince many environmental problems result

from product disposal &e.g., motor oil being sent into sewage systems to save the

recycling fee, or garbage piling up at landfills this is also an area of interest.

• Consumer behavior involves services and ideas as well as tangible products.

4



• The impact of consumer behavior on society is also of relevance. or e-ample,

aggressive marketing of high fat foods, or aggressive marketing of easy credit,

may have serious repercussions for the national health and economy.

)erices /arketing Triangle.

CO/PAN1

!/ANA2E/ENT(

Internal E3ternal

/arketing /arketing

E/P4O1EE Interactie CU)TO/ER)

/arketing

5E3ternal /arketing6 is about setting the promise.

5Internal /arketing6 is about enabling the employees to deliver the promise.

5Interactie /arketing6 is about delivering the promise.

It has been emphasi%ed that Indian Insurance Industry is growing and customers today

have more choices than before. #nd thus the need for improved Customer 3ervice. To

have an edge in the competitive market, besides improving the customer base, it is

very important to retain the current customers. ost of the company profits are

derived from the e-isting customer base. This is so because, the more products a

company can sell to a given customer, the less apt he5she is to migrate to another

provider. urthermore, as policyholders tend to stick to one company, the ratio of

premiums paid to the cost of claims increases in favor of the former. $astly, statistics

show that the longer a policyholder remains a customer, the less fre!uently he5she

submits a claim. #ll of these factors contribute to improved profitability.

Thus, drawing from the significance of 6elationship arketing, every

organi%ation has its own set of policies and strategies, which it formulates for

capitali%ing on the customer service opportunity. 7hile doing this, it takes into

consideration two parameters as mentioned before, i.e.,

8



Customer )atisfaction

Em*lo0ee )atisfaction

7,at is C,ocolate8

Chocolate or comprises a number of raw and processed foods produced from

the seed of the tropical cacao tree. Cacao has been cultivated for at least three

millennia in e-ico, Central and 3outh #merica, with its earliest documented use

around ))99 BC. The ma2ority of the esoamerican peoples made chocolate

beverages, including the #%tecs and the aya, who made it into a beverage known

as -ocol:tl, a ;ahuatl word meaning 0bitter water0. The seeds of the cacao tree have

an intense bitter taste, and must be fermented to develop the flavor.

#fter fermentation, the beans are dried, cleaned, and roasted, and the shell is

removed to produce cacao nibs. The nibs are then ground and li!uified, resulting in

pure chocolate in fluid form1 chocolate li!uor . The li!uor can be further processed

into two components1 cocoa solids and cocoa butter . "ure, unsweetened chocolate

contains primarily cocoa solids and cocoa butter in varying proportions. uch of the

chocolate consumed today is in the form of sweet chocolate, combining chocolate

with sugar. ilk chocolate is sweet chocolate that additionally contains milk powder

or condensed milk. 07hite chocolate0 contains cocoa butter, sugar, and milk but no

cocoa solids &and thus does not !ualify to be considered true chocolate.

Chocolate contains alkaloids such as theobromine and phenethylamine, which

have physiological effects on the body. It has been linked to serotonin levels in the

brain. 3cientists claim that chocolate, eaten in moderation, can lower blood pressure.

<ark chocolate has recently been promoted for its health benefits, including a

substantial amount of antio-idants that reduce the formation of free radicals, though

the presence of theobromine renders it to-ic to some animals, such as dogs and cats.

Chocolate has become one of the most popular flavors in the world. =ifts of

chocolate molded into different shapes have become traditional on certain holidays1

chocolate bunnies and eggs are popular on >aster , chocolate coins on *anukkah,

3anta Claus and other holiday symbols on Christmas, and hearts on ?alentine's <ay.

Chocolate is also used in cold and hot beverages, to produce chocolate milk and hot

chocolate.

@

http://en.wikipedia.org/wiki/Cacao

http://en.wikipedia.org/wiki/Mesoamerican

http://en.wikipedia.org/wiki/Aztec

http://en.wikipedia.org/wiki/Maya_civilization

http://en.wikipedia.org/wiki/Nahuatl


http://en.wikipedia.org/wiki/Bitter_(taste)

http://en.wikipedia.org/wiki/Fermentation_(food)



http://en.wikipedia.org/wiki/Chocolate_liquor


http://en.wikipedia.org/wiki/Cocoa_solids


http://en.wikipedia.org/wiki/Cocoa_butter


http://en.wikipedia.org/wiki/Sweet_chocolate

http://en.wikipedia.org/wiki/Milk_chocolate

http://en.wikipedia.org/wiki/White_chocolate

http://en.wikipedia.org/wiki/Alkaloid

http://en.wikipedia.org/wiki/Theobromine

http://en.wikipedia.org/wiki/Phenethylamine

http://en.wikipedia.org/wiki/Serotonin

http://en.wikipedia.org/wiki/Brain

http://en.wikipedia.org/wiki/Dark_chocolate

http://en.wikipedia.org/wiki/Easter_egg


http://en.wikipedia.org/wiki/Easter


http://en.wikipedia.org/wiki/Hanukkah


http://en.wikipedia.org/wiki/Santa_Claus

http://en.wikipedia.org/wiki/Christmas

http://en.wikipedia.org/wiki/Valentine's_Day


http://en.wikipedia.org/wiki/Chocolate_milk

http://en.wikipedia.org/wiki/Hot_chocolate


http://en.wikipedia.org/wiki/Mesoamerican


http://en.wikipedia.org/wiki/Maya_civilization


http://en.wikipedia.org/wiki/Bitter_(taste)





http://en.wikipedia.org/wiki/Sweet_chocolate

http://en.wikipedia.org/wiki/Milk_chocolate

http://en.wikipedia.org/wiki/White_chocolate

http://en.wikipedia.org/wiki/Alkaloid

http://en.wikipedia.org/wiki/Theobromine

http://en.wikipedia.org/wiki/Phenethylamine

http://en.wikipedia.org/wiki/Serotonin

http://en.wikipedia.org/wiki/Brain

http://en.wikipedia.org/wiki/Dark_chocolate




http://en.wikipedia.org/wiki/Santa_Claus

http://en.wikipedia.org/wiki/Christmas


http://en.wikipedia.org/wiki/Chocolate_milk



http://en.wikipedia.org/wiki/Cacao



Et0molog0

The word 0chocolate0 entered the >nglish language from 3panish. *ow the

word came into 3panish is less certain, and there are multiple competing e-planations.

"erhaps the most cited e-planation is that 0chocolate0 comes from ;ahuatl, thelanguage of the #%tecs, from the word 0chocolatl0, which many sources derived from

the ;ahuatl word 0-ocolatl0 made up from the words 0-ococ0 meaning sour or bitter ,

and 0atl0 meaning water or drink. *owever, as 7illiam Bright noted the word

0chocolatl0 doesn't occur in central e-ican colonial sources making this an unlikely

derivation. 3antamaria gives a derivation from the Aucatec aya word 0chokol0

meaning hot, and the ;ahuatl 0atl0 meaning water. ore recently <akin and

7ichmann derive it from another ;ahuatl term, 0chicolatl0 from >astern ;ahuatl

meaning 0beaten drink0. They derive this term from the word for the frothing stick,

0chicoli0.

Histor0 of C,ocolate

The origins of chocolate can be traced back to the ancient aya and #%tec

civilisations in Central #merica, who first en2oyed 'chocolatl'( a muchpri%ed spicy

drink made from roasted cocoa beans.

Throughout its history, whether as cocoa or drinking chocolate beverage or

confectionery treat, chocolate has been a much sought after food.

Because cocoa beans were valuable, they were given as gifts on occasions such as a

child coming of age and at religious ceremonies. erchants often traded cocoa beans

for other commodities such as cloth, 2ade and ceremonial feathers.

C,ocolate Across Euro*e

#n Italian traveller, rancesco Carletti , was the first to break the 3panish monopoly.

*e had visited Central #merica and seen how the Indians prepared the cocoa beans

and how they made the drink, and by )9 chocolate was well established in Italy.

Drinking C,ocolate

The secret of chocolate was taken to rance in ))D, when #nne, daughter of "hilip II

of 3pain, married Eing $ouis FIII of rance.

The rench court enthusiastically adopted this new e-otic drink, which was

considered to have medicinal benefits as well as being a nourishing food. =radually

D

http://en.wikipedia.org/wiki/Spanish_language



http://en.wikipedia.org/wiki/Sour

http://en.wikipedia.org/wiki/Bitter

http://en.wikipedia.org/wiki/William_Bright

http://en.wikipedia.org/wiki/Colonisation

http://en.wikipedia.org/wiki/Francisco_J._Santamar%C3%ADa


http://en.wikipedia.org/wiki/Yucatec_Maya_language

http://en.wikipedia.org/wiki/S%C3%B8ren_Wichmann

http://en.wikipedia.org/wiki/Spanish_language



http://en.wikipedia.org/wiki/Sour

http://en.wikipedia.org/wiki/Bitter

http://en.wikipedia.org/wiki/William_Bright

http://en.wikipedia.org/wiki/Colonisation


http://en.wikipedia.org/wiki/Yucatec_Maya_language

http://en.wikipedia.org/wiki/S%C3%B8ren_Wichmann



the custom of drinking chocolate spread across >urope, reaching >ngland in the

)D9s.

9irst C,ocolate for Eating

+p until this point all chocolate recipes were based on plain chocolate. It was an>nglish doctor, 3ir *ans 3loane, who after travelling in 3outh #merica focused on

cocoa and food values, bringing a milk chocolate recipe back to >ngland. The original

Cadbury ilk Chocolate was prepared to his recipe.



INDU)TR1 PRO9I4E

The chocolate market in India has a production volume of 89,G99 tonnes. Thissegment is characteri%ed by high volumes, huge e-penses on advertising, low

margins, and price sensitivity.

C,allenges

The ma2or challenges faced by the players in chocolate industry are1

• "erishable nature of the product

• "oor distribution network

•

3carcity of milk• 6ising prices of milk

/a:or Pla0ers

The ma2or players in the chocolate market are1

• Cadbury India $td.

• ;estle India $td.

They both account for H9 of the market share.

Ot,er *la0ers are;

• ITC

• *$$

Cad+ur0

Cadbury is a leading global confectionery company with an outstanding portfolio of

chocolate, gum and candy brands. Company employ around D9,999 people and have

direct operations in over 9 countries, selling our products in almost every country

around the world.

J



In India, Cadbury began its operations in )H@G by importing chocolates. #fter 9

years of e-istence, it today has five companyowned manufacturing facilities at

Thane, Induri &"une and alanpur &=walior, Bangalore and Baddi &*imachal

"radesh and @ sales offices &;ew <elhi, umbai, Eolkota and Chennai. The

corporate office is in umbai.

/ur core purpose 0creating brands people love0 captures the spirit of what company is

trying to achieve as a business. Company collaborate and work as teams to convert

products into brands. 3imply put and spread happinessK

Currently Cadbury India operates in four categories vi%. Chocolate Confectionery,

ilk ood <rinks, Candy and =um category. In the Chocolate Confectionery

business, Cadbury has maintained its undisputed leadership over the years. 3ome of

the key brands are Cadbury <airy ilk , D 3tar , "erk , Lclairs and Celebrations.

Cadbury en2oys a value market share of over J9 the highest Cadbury brand share

in the worldK /ur flagship brand Cadbury <airy ilk is considered the 0gold

standard0 for chocolates in India. The pure taste of C< defines the chocolate taste

for the Indian consumer.

In the ilk ood drinks segment our main product is Bournvita the leading alted

ood <rink &< in the country. 3imilarly in the medicated candy category *alls is

the undisputed leader. Company recently entered the gums category with the launch

of our worldwide dominant bubble gum brand Bubbaloo. Bubbaloo is sold in 4D

countries worldwide.

G

http://www.cadburyindia.com/brands/choco1.asp








http://www.cadburyindia.com/brands/bev1.asp

http://www.cadburyindia.com/brands/conf1.asp






http://www.cadburyindia.com/brands/bev1.asp

http://www.cadburyindia.com/brands/conf1.asp



3ince )HD Cadbury has also pioneered the development of cocoa cultivation in India.

or over two decades, company has worked with the Eerala #griculture +niversity to

undertake cocoa research and released clones, hybrids that improve the cocoa yield.

/ur Cocoa team visits farmers and advises them on the cultivation aspects from

planting to harvesting. company also conduct farmers meetings M seminars to educate

them on Cocoa cultivation aspects. /ur efforts have increased cocoa productivity and

touched the lives of thousands of farmers. *ardly surprising then that the Cocoa tree

is called the Cadbury treeK

Today, company is poised in our leap towards !uantum growth. Company is a part of

the Cadbury "$C, world's leading Confectionery Company. Aes, like company said it

will continue spread happinessK

HI)TOR1 O9 CADBUR1

>ver since the Cadbury actory was set up in India in )H@J, the term 0Cadbury0 has

become synonymous with chocolates. #ny brand of Chocolate is called Cadbury and

7hy ;otN Considering the penchant Indians have for sweets, it's not surprising that

this sweet, smooth, milky and delicious brown bar is the best childhood gift any

Indian child could get. Thank =od for young Oohn Cadbury who ventured into the

chocolate business over )D9 years ago, way back in >ngland in )G4@.

Oohn Cadbury believed that alcohol was one of the causes of poverty and d8eprivation

amongst the working class, and by providing tea, coffee, cocoa and chocolate as an

alternative, her felt that he was helping to relieve some of the misery.

By today's 3tandards, the Chocolate produced by Cadbury in the late )GG9's was not

particularly palatable. Cocoa mass, cocoa butter, sugar and milk powder were mi-ed

together into a coarse dry mass. Competition from rance and 3wit%erland force the

Cadbury e-perts to improve their recipe, leading to new formulas which incorporated

fresh milk, and the development of a new production process. <airy ilk &then

known as <airy aid was the result. Cadbury were ready to challenge the 3wiss

domination of the milk chocolate market.

<airy ilk gradually gained its status as the brand leader and has held the

number one spot ever since. $ong gone is the dry chocolate supplied by Oohn Cadbury

in his Birmingham grocery store. Today more than 4D9 million bars of <airy ilk are

produced result. Cadbury were ready to challenge the 3wiss domination of the rnilk

Chocolate market. <airy ilk gradually gained its status as the brand leader, and has

H



held the number one spot ever since, long gone is the dry chocolate supplied by Oohn

Cadbury in his Birmingham grocery store. Today more than 4D9 million bars of <airy

ilk are produced and consumed every year.

Aears of chocolate making e-pertise and a carefully controlled process have

given the Cadbury brands the special taste and smoothness for which chocolate lovers

are eternally grateful.

A/U4

D9 years after it was first launched, #mul's sale figures have 2umped from

)999 tonnes a year in )H to over 4D,999 tonnes a year in )HHJ. ;o other brand

comes even close to it. #ll because a thumbsi%ed girl climbed on to the hoardings and

put a spell on the masses.

Bom+a01 3ummer of )HJ. # Chami 6oad flat. rs. 3heela ane, a 4Gyearold

housewife is out in the balcony drying clothes. rom her second floor flat she can see

her neighbours on the road. There are other people too.

The crowd seems to be growing larger by the minute. +nable to curb her

curiosity 3heela ane hurries down to see what all the commotion is about

3he e-pects the worst but can see no signs of an accident. It is her fouryear

old who draws her attention to the hoarding that has come up overnight. 0It was the

first #mul hoarding that was put up in umbai,0 recalls 3heela ane. 0"eople loved

it. I remember it was our favourite topic of discussion for the ne-t one weekK

>verywhere we went somehow or the other the campaign, always seemed to crop up

in our conversation. Call her the riday to riday star. 6ound eyed, chubby cheeked,

winking at you, strategically placed hoardings at many traffic lights. 3he is the #mul

moppet everyone loves to love &including prickly votaries of the 3hiv 3ena and BO".

*ow often have we stopped, looked, chuckled at the #mul hoarding that casts her

sometime as the coy, shy adhuri, a bold sensuous +rmila or simply as herself,

dressed in her little polka dotted dress and a red and white bow, holding out her

favourite packet of butter. or 89 odd years the +tterly Butterly girl has managed to

keep her fan following intact. 3o much so that the ads are now ready to enter the

=uinness Book of 7orld 6ecords for being the longest running campaign ever. The

ultimate compliment to the butter came when a British company launched butter and

called it +tterly Butterly, last year.

)9



It all began in )H when

3ylvester daCunha, then the managing director of the advertising agency, #3",

clinched the account for #mul butter. The butter, which had been launched in )H@D,

had a staid, boring image, primarily because the earlier advertising agency which was

in charge of the account preferred to stick to routine, corporate ads.

In India, food was something one couldn't afford to fool around with. It had

been taken too seriously, for too long. 3ylvester dacunha decided it was time for a

change of image.

The year 3ylvester daCunha took over the account, the country saw the birth

of a campaign whose charm has endured fickle public opinion, gimmickry and all

else.

The #mul girl who lends herself so completely to #mul butter, created as a

rival to the "olson butter girl. This one was se-y, village belle, clothed in a tantali%ing

choli all but covering her upper regions. 0>ustace ernande% &the art director and

decided that we needed a girl who would worm herway into a housewife's heart. #nd

who better than a little girlN0 says 3ylvester dacunha. #nd so it came about that the

famous #mul oppet was born. That /ctober, lamp kiosks and the bus sites of the

city were splashed with the moppet on a horse. The baseline simply said, Thorough

bread, +tterly Butterly <elicious #mul,. It was a matter of 2ust a few hours before the

daCunha office was ringing with calls. ;ot 2ust adults, even children were calling up

to say how much they had liked the ads. 0The response was phenomenal,0 recalls

3ylvester daCunha. 07e knew our campaign was going to be successful.0

))



or the first one year the ads made statements of some kind or the other but they had

not yet ac!uired the topical tone. In )HJ, 3ylvester decided that giving the ads a solid

concept would give them e-tra mileage, more dum, so to say. It was a decision that

would stand the daCunhas in good stead in the years to come.

In )HH, when the city first saw the beginning of the *are 6ama *are Erishna

movement, 3ylvester daCunha, ohammad Ehan and +sha Bandarkar, then the

creative team working on the #mul account came up with a clincher '*urry #mul,

*urry *urry'. Bombay reacted to the ad with a fervour that was almost as devout as

the Iskon fever.

That was the first of the many topical ads that were in the offing. rom then on

#mul began playing the role of a social observer. /ver the years the campaign

ac!uired that all important #mul touch. India looked forward to #mul's evocative

humour. If the ;a-alite movement was the happening thing in Calcutta, #mul would

be up there on the hoardings saying, 0Bread without #mul Butter, cholbe na cholbe na

&won't do, won't do. If there was an Indian #irlines strike #mul would be there again

saying, Indian #irlines 7on't ly 7ithout #mul.

There are stories about the butter that people like to relate over cups of tea.

0or over )9 years I have been collecting #mul ads. I especially like the ads on the

backs of the butter packets, 0says rs. 3umona ?arma. 7hat does she do with these

adsN 0I have made an album of them to amuse my grandchildren,0 she laughs. 0They

are almost part of our culture, aren't theyN y grandchildren are already beginning to

realise that these ads are not 2ust a source of amusement. They make them aware of

what is happening around

them.0

<espite some of the negative reactions that the ads have got, <aCunhas have

made it a policy not to play it safe. There are numerous ads that are ris!ue in tone.

0Company had the option of being sweet and playing it safe, or making an impact. #

fine balance had to be struck. Company has a campaign that is strong enough to make

a statement. I didn't want the hoardings to be pleasant or tame. They have to say

something,0 says 6ahul daCunha.

0Company ran a couple of ads that created !uite a furore,0 says 3ylvester daCunha.

0The Indian #irlines one really angered the authorities. They said if they didn't take

down the ads they would stop supplying #mul butter on the plane. 3o ultimatelycompany discontinued the ad,0 he says laughing. Then there was the time when the

)4



#mul girl was shown wearing the =andhi cap. The high command came down heavy

on that one. The =andhi cap was a symbol of independence, they couldn't have

anyone not taking that seriously. 3o despite their reluctance the hoardings were wiped

clean. 0Then there was an ad during the =anpati festival which said, =anpati Bappa

ore =hya ,

&=anpati Bappa take more. The 3hiv 3ena people said that if company didn't do

something about removing the ad they would come and destroy our office. It is

surprising how vigilant the political forces are in this country. >ven when the >nron

ads &>nr /n /r /ff were running, 6ebecca ark wrote to us saying how much she

liked them.0

#mul's point of view on the 6 coffee controversy

There were other instances too. *eroine #ddiction, #mul's little 2oke on

*ussain had the artist ringing the daCunhas up to re!uest them for a blow up of the

ad. 0*e said that he had seen the hoarding while passing through a small district in

+". *e said he had asked his assistant to take a photograph of himself with the ad

because he had found it so funny,0 says 6ahul daCunha in amused tones. Indians do

have a sense of humour, after all.

rom the 3i-ties to the ;ineties, the #mul ads have come a long way. 7hile

most people agree that the #mul ads were at their peak in the >ighties they still

maintain that the #mul ads continue to tease a laughter out of them. 7here does

#mul's magic actually lieN OP)any believe that the charm lies in the catchy lines. That

we laugh because the humour is what anybody would en2oy. They don't pander to

your nationality or certain sentiments. It is pure and simple, everyday fun.

)8



CO/PAN1 PRO9I4E

HENR1 NE)T4< !%=%> ? %=&@(

;estlQ India is a multinational company with its worldwide

operations in over J9 countries. The founder of ;estlQ 3. #.

was *enry ;estle who from a modest beginning founded

the company in )G at 3wit%erland for manufacturing milk

powders for babies. #t that time 3wit%erland faced one of

the highest infant mortality rate and the milk formula saved

the lives of many infants whose mothers were unable to

breast feed successfully.#t present ;estlQ is the worlds largest food company with its international

head!uarters at ?evey, 3wit%erland. 7ith almost D99 factories worldwide it employs

more than 4 $ac people.

;estlQ is often !uoted by most as Rmultinational of multinationals.S There is a good

reason, as less than 4 of the turnover comes from the domestic market in

3wit%erland.

;estlQ is very decentrali%ed in its operations and most of the markets are givenconsiderable autonomy in its operation. It is more of a people and products oriented

company rather than systems oriented company There are R unwritten guidelinesS

which are to be followed, based on common senses and a strong set of moral

principals emphasi%ing a lot of respect for fellow beings.

NE)T4< PHI4O)PH1

7hen *enri ;estle introduced the first commercial infant formula in )GJ, he alsocreated a symbol of the Birds nest, graphic translation of his name, which personifies

the companys business. The symbol, which is universally understood, evokes

security, motherhood and affection, nature and nourishment, family and tradition.

Today it is the central element of ;estlQs corporate identity and closely parallels the

companys corporate values and culture.

)@



PRODUCT RAN2E O9 NE)T4<

Its activities include manufacturing and marketing of1

Condensed milk

"owdered milk Ice creams

/ther dairy products

Infant foods

Chocolates M Confectionery items

Tea

Coffee

Culinary products

ro%en products

ruit 2uices

ineral water

"et foods

"harmaceuticals and Cosmetics

OPERATION) IN INDIA

)D



;estlQ set up its operations in India, as a trading company in )H)4 and began

manufacturing at the oga factory in )H4. The production started with the

manufacture of ilkmaid and other product were gradually brought into the fold.

Nestlé India Limited was formally incorporated in )HJG prior to which the

manufacturing license was issued in the name of the Food Specialties Limited . The

corporate office is located at =urgaon and the registered office at D#, Cannaught

Circus, and ;ew <elhi.

#t present ;estlQ has manufacturing units countrywide which are successfully

engaged in meeting the domestic as well as the e-ports demand. In addition there are

several co packing units.

The oga factory is the largest and the oldest producing the widest range of food

products.

The other factories are located at: -

C,oladi !Tamilnadu( Instant Tea >-port )HH

Nan:angud !arnatka( Coffee M ilo )HGH

)amalk,a !Har0ana( Cereals, ilkmaid <eserts )HH4

Ponda !2oa( Chocolates M Confectionery )HHD

Bic,olim !2oa( ;oodles and Cold 3auces )HHJ

Toda0" t,e com*an0 is manufacturing and /arketing t,e +rands in t,e follo$ing

*roduct categories; -

ilk and <ietetics

Culinary

Cereals

Instant <rinks Chocolates and Confectionery

Investor 6elations

Ru*ees in /illions

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/O2A 9ACTOR1

oga factory started production in )H4.Today(

oga contributes almost JD of ;estle Indias

total production volume, manufacturing G9,999

tons of food products. It employs )99 people. The

entire range of milks, culinary products and cereals

are manufactured in oga. oga is located in the

state of "un2ab about @99Ems.;orth of ;ew

<elhi. oga factory is the largest and oldest,

producing the widest range of food products.

CHO4ADI 9ACTOR1

The factory in Choladi started production in )HJ.

3ituated in south India, about 4JD kms from

Bangalore, the factory today has G9 employees. It

processes about D99 tons of soluble instant tea,

which is all e-ported.

NANAN2UD 9ACTOR1

"roduction in ;an2angud factory started in )HGH

with the manufacture of ;escafe and sunrise. ilo

manufacture at ;an2angud began in )HH. 3ituated

)9 kms south of Bangalore, the factory has 4@D

employees. Coffee capacity currently is )4,999 tons

and ilo )D99 tons per annum.

)A/A4HA 9ACTOR1

3amalkha factory started production in )HH8

situated J9kms from <elhi it has 498 employees

and manufactures about )),999 tons of food

)J



products comprising Cerelac, ;estum and ethnic deserts. RPure 4ifeS, treated water

and RNestl Da,iS are also being produced here.

PONDA 9ACTOR1

"onda actory began production of EitEat in)HHD. It is located @9kms from "an2i the capital

city of =oa .It is Being >-panded into other

confectionery products vi%., Oellies "astilles,

Eools and Chocolate based confectionery. "onda

currently employees )@9 people.

BICHO4I/ 9ACTOR1

Bicholim actory &3atellite factory of "onda

was set up 8D kms away from "onda, =oa to

manufacture Culinary "roducts vi%.. 3auces,

;oodles, 3oups and other products /perational

in )HHJ It has an installed capacity of around

G,999 tonnes appro-imately

INDIA HA) THE CO-PACIN2 ARRAN2E/ENT A4)O;

). ;estlQ "olo Bakemans &;agpur

4. ChocolatesCampco &"uttur

8. Tasters Choice7illiamson a2or company &3illiguri

@. Toffee;utrine &3urinder ;agar

D. "icklesChoride foods $td.&"una

. Cold 3auce 499 gm U ;i22er #gro "vt. $td. #mritsar

J. <osa M 3amber mi-UIndian foods M fermentation $td. ;agpur

;estle India is a subsidiary of ;estle 3.#. of 3wit%erland. 7ith si- factories

and a large number of co U packers, ;estle India is a vibrant company that provides

consumers in India with products of global standards and is committed to long term

sustainable growth and shareholder satisfaction. The company employs over 8D99

people are for the full year 4994 ;estle India recorded net sales of 6s. 49@JJ io.

)G



;estle has been a partner in Indias growth for the past time decades and has

built a very special relationship of trust and commitment with the people of India. The

culture of innovation and renovation within the company and access to the ;estle

=roups proprietary technology 5 Brands, e-pertise and the e-tensive centrali%ed

6esearch and <evelopment facilities helps the company to create value that can be

sustained over the long term. ;estle India manufacturers products of truly

international !uality under internationally famous Brand names such as ;escafe,Cerelac, aggi, ilky Bar, ilo, Bar/ne, ;estea and EitEat at and in the recent

years the company has also introduced products of daily consumption and use such as

;estle ilk, ;estle <ahi, ;estle Butter, ;estle ruitn milk ready to drink beverage

and ;estle "ure $ife bottled drinking water.

Nestle C,ocolates

• ;>3T$L EIT E#T

•

;>3T$L EIT E#T C*+;EA• ;>3T$L +;C*

• ;>3T$L +;C* "/" C*/C

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• ;>3T$L I$EAB#6 C*//

• ;>3T$L B#6/;>

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• ;>3T$L >clairs

• ;>3T$L I$EAB#6 >clairs

• ;>3T$L 3elections

NE)T4E INDIA 4TDD) subsidiary of ;estle 3#, is among the leading branded food player in the

country. It has a broad based presence in the foods sector with leading market shares

in instant coffee, infant foods, milk products and noodles. It has also strengthened the

presence in chocolates, confectioneries and other semi processed food products during

the last few years. The company has launched <airy "roducts like +*T ilk, Butter

and Curt and also ventured into the mineral water segment in 499). ;estles leading

brands include Cerelac, ;estum, ;escafe, aggi, Eitkat, unch and "ure $ife.

INDU)TR1 )CENARIO

The processed foods sector, which currently accounts for less than 4 of total

food consumption in the country, is slated to grow at a fast pace. The Indian

=overnment has identified ood "rocessing as a high potential industry and has been

creating a policy environment conducive to its growth. *istorically, the policy

framework favored small and unorgani%ed players while the ;C players were

restricted from adding capacities. This led to the mushrooming of a vast unorgani%edsector. $arge players with strong marketing network and brand e!uity, were forced to

sour@ce from third party producers. <uring the last few years, however, several food

products have been deserved from small U scale sector. ;Cs as well as domestic

players have made aggressive investments in the sector. Vuantitative restrictions on

import of several food products have been lifted, leading to greater availability of

imported products. ;Cs are able to offer a wider product range, without the need to

establish a manufacturing base.CO/PETITION

Baby food and instant coffee are categories where brand loyalties are very

strong and ;estle is the market leader. *$$ is a significant competitor to ;estle in

instant coffee, while *ein% is the main competitor in the baby foods market. The

market for culinary products, semi U processed foods such as noodles, ready mi-es for

Indian ethnic breakfast and sweets, is largely an urban market. *$$ and indo ;issin

oods are the main competitors in these product segments. ;estle has also achieved asignificant 4D share in the chocolate 5 confectionery market. The company has

49









recently e-panded its dairy products portfolio to include milk, curd and butter. The

company also forayed into the bottled water segment with the launch of its "errier

brand in the premium mineral segment and "ure $ife in the purified water segment.

NE)T4E HA) /AINTAINED IT) THRU)T/n improving availability of its products and on initiatives to increase the

freshness of stocks available to consumers. ;ew products are continuously launched

in all product segments. In the current year the company has launched mineral water.

+*T milk, butter, curd, new tomato and curry flavors in aggi noodles, a new

confectionary U ;estle Choco 3tick at an affordable price point of 6s 4, a soft chewy

fudge ilkybar Choc and ;estea iced tea. The company is also setting up WCare

;escafe and WCoffee Comers across metros and mini U metros.

IN9ANT 9OOD J /I4 PRODUCT)

ilk based products and party baby food contributes to @8 of ;estles

turnover. or ensuring regular procurement of good !uality milk, ;estle has

developed a network around its oga factory for collection of fresh milk everyday

from the farmers. ;estle has a dominating GJ market share in the baby weaning

foods with its Cerelac and ;eslum brands. Infant milk powder is sold under the

$actogen and ;estogen brands. Brand loyalties are very high in categories such as

infant food and weaning cereals, enabling the company to command a price premium.

/ther milk products include dairy whiteners &4) market share and sold

under eh >very<ay and Tee ate brands, sweetened condensed milk and ready to

cook mines for traditional Indian sweets sold under the ilkmaid brand. The

company also markets ghee & market share under the >very<ay brand. ;estle has

e-panded its milk product portfolio with the launch of new dairy products such as

+*T milk, Curd and Butter. *uge investments are being made in building a

diversified dairy business and the distribution infrastructure for the same. ilk

products sales registered a )9. yoy growth during 499).

CHOCO4ATE) # CON9ECTIONER1

;estle forayed into chocolates M confectionery in )HH9 and has cornered a

fourth share of the chocolate market in the country. The category contributes )@ to

;estles turnover. It has e-panded its products range to al segments of the market. The

Eitkat brand is the largest selling chocolate brand in the world. /ther brands include

ilky Bar, arbles, Crunch, ;estle 6ich <ark, Bar U /ne, unch etc. The sugar

4)



confectionary portfolio consists of "olo. 3oothers, rootos and ilkybar clairs. #ll

sugar confectionery products are sold under the umbrella brand #llens. ;estle has

also markets some of its imported brands like Vuality 3treet, $ions and #fter >ight.

;ew launches such as ;estle Choco 3tiick and sales registered a strong 4).D yoy

growth in 499) aided by good voHlume growth in unch, Eitkat and Classic sales.

;estle relaunched Bar U /ne during the year.

CU4INAR1 PRODUCT)

6eady to cook food 5 cooking aides are sold under the umbrella branded name

aggie. Culinary product account for about )@ of ;estles turnover. aggie is the

leader in the noodles &@D market share and the Eetchup &@8 market share

categories. /ther products, sold under the umbrella brand aggie, are ready to cook

gravy5 sauces, soups, seasonings as well as traditional Indian foods such as pickles

and instant snack mi-es. ;ew taste variants are continuously launched to add variety

to the product offerings. Culinary product sales registered a 49 yoy growth during

499).

BAC2ROUND

;estle was promoted by ;estle #limentana, 3wit%erland, a wholly owned

subsidiary of ;estle *oldings $td., ;assau, Bahama islands, ;estle is one of the

oldest food ;C operating in India, with a presence of over a century. or a long

time, ;estle Indias operations were restricted to importing and trading of condensed

milk and infant food. /ver the years, the Company e-panded its product range with

new products in instant coffee, noodles, sauces, pickles, culinary aids, chocolates and

confectionery, dairy products and mineral water.

;estle was incorporated as a limited company in )HDH. In )HJG, the company

issued shares to the Indian public to reduce its foreign holding to @9. Its name was

changed from oods 3pecialties $td. to the current name in )HG). The parent held

D) stake in the company as at 4999 end. It has I"B approval of hike stake by )9

and has been gradually ac!uiring shares from the open market. "arent stake in the

company as at 499) end stood at D8.GG. The parent plans to continue hiking stake

through open market purchases.

9UTURE PRO)PECT)

44



;estle is focused on product e-pansion and improvement of distribution

efficiency. The dairy business is being e-panded and is e-pected to drive growth in

the long run, although short U term profitability may be impacted in investment stage.

The companys entry into the mineral water segment is a concern, as the segment is

already overcrowded and the company faces stiff competition especially from the

Cola manufacturers. #c!uisition of an established brand could catapult ;estles

position in the segment. In categories like beverages, culinary products and chocolate

confectionery, the company is locking at driving growth through launch of smaller

3E+s thus enabling affordability to a wide section of the population.

EARNIN2) )EN)ITIKIT1 9ACTOR)

3uccess of new category launches &ilk and ineral 7ater which involves

considerable investment for promotional schemes and ad U spend and yield returns

only after a few years.

Continued e-ports to 6ussia, ;estles main market for coffee e-ports.

=ood monsoon ensures ade!uate availability or raw materials,which are mainly

agricultural in nature. 6aw material prices have significant influence on margins.

=overnment policies in terms of licensing, duties, movement of agricultural

commodities etc. arket growth driven by overall economic growth and urbani%ation.

6upee depreciation improves e-port reali%ations.

/ARET PO)ITIONIN2

>ach company and offering must represent a distinctive big idea in the mind

of the target, and each company must dream up new features services and guarantees,

special rewards for loyal users and new conveniences and en2oyments.

Aet even when a company succeeds in distinguishing itself, the differences areshort U lived. Competitors are !uicker than ever in copying good ideas( therefore

companies constantly need to think up new value U adding features are benefits to win

the attention and interest of choice U rich, price U prone consumers.

Companies normally reformulate their marketing strategies and offerings

several times. >conomic conditions change, competitors launch new assaults, and the

product passes through new stages of buyer interest and re!uirements. Conse!uently,

strategies appropriate to each stage in the products life cycle must be developed. Thegoal is to e-tend the products life and profitability, keeping in mind that the product

48



will not last forever. This chapter e-plores specific ways a company can effectively

position and differentiate its offerings is achieve competitive advantage throughout

the life cycle of a product or an offering.

#ll marketing strategy is built on 3T" U 3egmentation, Targeting, and

positioning. # company discovers different needs and groups in the market place,

targets those needs and groups that it can satisfy in the superior way, and then

positions its offering so that the target recogni%es the companys distinctive offering

and image. If a company does a poor 2ob of positioning, the market will be confused

as to what to e-pect. If a company does an e-cellent 2ob of positioning, then it can

work out of the rest of its marketing planning and differentiation from its positioning

strategy.

7e define positioning as follows. "ositioning is the act of designing the

companys offering and image to occupy a distinctive place in the mind of the target

market. The end result of positioning is the successful creation of customer Ufocused

value proposition, a cogent reason why the target market should buy the product.

4@



RE9ERENCE)

7EB)ITE);-

www.nestle.com

www.thehindubusiness.com www.etstrategicmarketing.com

www.forum.nestle.pl

/A2ALINE);-

?artalap aga%ine, ;estle India $imited

3ampark aga%ine, ;estle India $imited.

=lobe aga%ine, ;estle India $imited. ilwartan aga%ine, ;estle India $imited.

;estle employee information handbook, ;estle India $imited, oga.

BOO);-

NA/E AUTHOR arketing anagement E/T$>6 arketing# anagerial Introduction =#;<*I

CHAPTER -

4D

http://www.nestle.com/

http://www.thehindubusiness.com/

http://www.etstrategicmarketing.com/

http://www.forum.nestle.pl/







REKIE7 O9 4ITERATURE

4ic,tenstein" Neteme0er and Burton !%&&@( e-amined the impact of coupons on

consumers perception of ac!uisition utility and transaction utility. They found that a

coupon had greater impact on transaction utility than ac!uisition utility. Thishappened because the lower price offered by the coupon was contrasted against the

internal reference price. Buyers compared the price at which they were getting the

product to an internal reference price that led to the associated pleasure with the

financial terms of the deal.

2re$al and /onroe !%&==( e-amined the impact of price comparison advertising

&where a high advertised comparison price is compared to a lower advertised selling

pric

e on buyers perception of ac!uisition utility, transaction utility and behavioural

intention. They proposed that comparing a lower selling price to a higher advertised

referred price &e.g. 7as 6s. 499, ;ow 6s.)D9 would enhance buyers psychological

satisfaction or transaction utility obtained from the deal. The result indicated that

comparing a lower selling price to a higher e-ternal referred price enhanced perceived

transaction utility which in turn enhanced buyers perception of ac!uisition utility and

willingness to buy the promoted product.

/onroe !%&&( had proposed a theory called #daptation level theory or internal

referred price theory which said that consumers carry with them an adoption level

price or Winternal reference pricefor a given product. The internal reference price

represents the price a consumer e-pects to pay for a product and is formed on the

basis of post prices paid 5observed either for the same product or similar products.

The internal reference price is a standard against which market prices are compared

and 2udged as high, low or medium.

T,aler !%&=( developed the ental #ccounting Theory, which states that people

practice a form of cognitive bookkeeping or Wmental accounting to keep track of

transactions. ental accounting theory proposes that people set up mental accounts to

evaluate costs &losses and benefits &gains related to particular transactions.

Henderson and Peterson !%&&( demonstrated that people tend to group and label

different sources of income. 6esearchers have shown that people assign income,

e-penses and activities to specific mental accounts.

4



T,aler and o,nson !%&&@( have found that individuals perceive une-pected

monetaryinflows such as 3ales "romotion as Wgains and have a higher marginal

propensity of consumption as e-pected income. 6esearchers have proposed that

consumers respond to a price promotion based on the comparison between the internal

reference price and the promotional price !4attin and Buc,lin" %&=&M al$ani and

1im" %&&( re!uent price promotion has lead consumers to lower the reference

price for the promoted product. Consumers withlowered reference prices will be

unwilling to pay the full price of a product once the promotion is over.

7iner !%&='( investigated the nature of reference price effects on branded choice

through a lower probability model whereby the probability of purchase for a brand

was a function of the observed price and the difference between the observed price

and reference price. *e found that the model predicted probability of purchase better

than standard demand models that incorporated only brand prices.

4J



4G



CHAPTER-

RE)EARCH /ETHODO4O21

6esearch is finding facts M establishing relationships by practical method. "roperly

conducted M meticulous research can prove to be a valuable tool for top management

in making critical analysis M giving accurate results.

#s the importance, scope, functions M costs of business decisions have

increased steadily M dramatically over the years, 3o has the need for accurate M

ob2ective information increased. This is obtained only through e-tensive research

process.The present chapter has been subdivided in to two sections.

) 3cope of the study

4 6esearch <esign.

6esearch design has been further classified into three subsections.

#. 3ample selection M si%e

B. 3ampling "rocedure

C. <ata Collection

<. #nalytical Tools

#nd last thing which we need to discuss the limitations of the study.

% )COPE O9 THE )TUD11

The universe of the research was Consumers. The sample

6espondents have been selected from 3irsa City only.

RE)EARCH DE)I2N ;# research design is the overall framework of plan used for collection and

analysis of data. The research design should incorporate a problem definition, a plan

for gathering and analysis of data, a time framework and a budget estimate. The

research design presents an organi%ed, systematic approach to the formulation

implementation and control of research pro2ect. Infect a suitable research design

guards against collection of ineleval)t data and achieving result in more economical

way. In the present study descriptive research approach has been adopted. The data

has been collected through survey method.

4H



A )A/P4E )E4ECTION # )ILE

irst step of research is sample selection, for which respondents were

consumers in 3irsa city. Total consumers covered were )99.

B )A/P4E PROCEDURE

The Consumers are selected by the following methods1

&i Convenience 3ampling1

The researcher selects the most accessible population members from which to

obtain information.

E3*lorator0 Researc, $as used

C DATA CO44ECTION

#fter choosing the sample, the ne-t step in the research program is datacollection to ensure the relevance of the data collected, care is taken to minimi%e the

errors in methods of the data collection.

Primar0 Data;

or the present study, the researcher used the !uestionnaire method for

collecting "rimary data. # structured !uestionnaire was used for the purpose of

conducting the Interviews. The !uestionnaire included multiple choice !uestions.

)econdar0 Data 1

#ny data which is available prior to the commencement of a research study is

secondary data. It refers to the information that has been collected by someone else,

often this include printed or published data. The main source of secondary data for

this pro2ect has been0 0Business Today's M Booklet of various companies of

chocolates.

D ANA41TICA4 TOO4)

The data thus collected was tabulated, interpreted M analy%ed to make the

study meaningful.

OBECTIKE O9 THE )TUD1

The main ob2ect of the survey is to know about the liking for the Chocolates

deterrent people like kids, adults M parents which include students, teachers,

*ousewives, businessmen, doctors etc.

89



3ince the price war between various Companies manufacturing chocolates has

undergone a classic change, hence the various !ueries in this survey fulfill the under

mentioned ob2ectives are 1

To know the consumer perception regarding chocolates

To 3tudy the price consideration

To 3tudy the packaging effect

To 3tudy the different recognition as reasons to 6elish Chocolate

To 3tudy the #fter effects of Chocolate Consumption

To 3tudy the si%e of chocolate more demanded

4I/ITATION O9 )TUD1 # sample of )99 6espondents is so small to generalise the results for the entire

population. Thus, the results don't have much practical value.

$imited time available was not enough to do the survey without any error.

The resources at the disposal of the researcher were not ade!uate

7ide area of 3irsa was not possible to cover for the 6esearch.

8)



CHAPTER->

DATA ANA41)I) AND INTERPRETATION

% Do 0ou eat c,ocolate8

Aes ;o)99 9

/verruling perceptions of health ha%ardness of the chocolates, all the targeted

respondents echoed in one voice that they can't abstain from the magical taste of the chocolates. #ll the )99 respondents use to eat chocolates time to time.

84



7,ic, com*an0s c,ocolate 0ou *refer 8

#mul ;estle Cadbury #ny other )@ 44 4 4

Cadbury chocolates are dominating the chocolate industry as this fact has been

corroborated by 4 respondents out of )99 respondents followed by 44

respondents favouring ;estle, )@ respondents going with #mul. *owever there

were 4 respondents have their respective choice of brand.

7,ic, *roduct of c,ocolate 0ou eat most 8

88



;estle Eit Eat ;estle unch ;estle ilky Bar /ther )D ) 9

/ut of the 44 respondents usually taking ;estle Chocolate )D respondents like

unch, like Eit Eat and ) like ;estle ilky Bar, none went with any other option.

> If not Nestle" ,ae 0ou eer tried Nestle c,ocolates8

8@



Aes ;oG )9

/ut of the JG respondents who don't preferred ;estle, G respondents ever

tried ;estle products and )9 respondents have not ever tried ;estle chocolates.

If Nestle" ,o$ $ould 0ou rate t,e Nestle C,ocolate taste8

8D



Better than others ;o difference 7orse than others)G @ 9

There were 44 respondents preferring ;estle chocolate and out of 44

respondents )G respondents consider ;estle chocolates better than other, however

@ respondents found no difference of taste in comparison to other products.

' 7,ic, flaor of c,ocolate do 0ou like most8

8



Choco /range Crunchi ;uts ilk 7afersDG 9 )@ 4 )@ )4

3urvey enunciated that its the taste of choco which has tempted the youth and

kids as corroborated by DG respondents, however several other products have

made their place as )@)@ each respondents went with Crunchi and ilk, )4 went

with wafers, 4 like nuts.

7,0 do 0ou eat c,ocolate8

Taste *abit *unger 3tatus

8J



GH )9 ) 9

There is no other factor than its taste behind the sale of chocolates as out of )9

respondents GH admitted that they are slave of taste, however, )9 respondents havehabit of chocolates, only ) respondent told that he use to eat chocolate at the time of

hunger.

= 7,ic, factor makes 0ou to +u0 a *articular +rand of c,ocolate8

#dvertisement 3uggested

by friends

"rice

Consideration

Taste #ny other

8G



44 4 )@ ) )

?arious factors work for the any particular brand of chocolate, when the

respondents were asked to denote one which effect them to buy a particular brand )respondents admitted that its the taste for which they buy a particular brand, however

44 respondents are influenced by the advertisements, )@ respondents buy any

particular brand considering the price of the product.

& Ho$ often 0ou +u0 c,ocolates8

<aily /ccasionally)J G8

8H



*ow often consumer buy chocolates, is a factor to be considered by the

concerned players as the results the study tells that G8 respondents buy occasionally,

however )J respondents buy daily.

%@ According to 0ou $,at matters more *rice or ualit0 8

"rice Vuality Both)D D4 88

@9



This issue has always been that which matters more price or !uality, when the

respondents were asked to whom they will chose first D4 respondents went with

!uality, )D respondents chosen price, whereas, 88 respondents consider both factor

and after reconciliation between both they decide their product.

%% 7,ic, denomination c,ocolate 0ou +u0 most8

+pto )9 6s. ))49 6s. ore than 49 6sD )@ 4)

@)



There are various denominations of which most of the respondents buy

chocolates, D respondents mostly buy chocolates upto )9 6s. 4) respondents buy

more than 49 6s. chocolates or family pack. /nly )@ respondents buy upto 49 6s.

% Do 0ou t,ink c,ocolates are ,ealt, ,aard8

Aes ;oDJ @8

@4



It has been a conception that chocolates are health ha%ard. There is a concept

that these are not good for teeth. *owever in the study only DJ respondents consider it

health ha%ard. @8 respondents ruled out any possibility of such concept.

% Hae 0ou eer e3*erienced an0 t,ing aderse a+out Nestle C,ocolates8

Aes ;o4H J)

@8



6egarding the adverse e-perience with ;estle Chocolate, J) respondents

declined such e-perience however 4H respondents faced such e-perience.

%> If 0es" $,at $as t,e *ro+lem

6egarding taste 6egarding price #ny other G )) )9

@@



/ut of the 4H respondents having adverse e-perience )) complained about its

price followed by )9 respondents having respective complaints and G complained

about its taste.

% 7ould 0ou recommend Nestle c,ocolates to ot,er8

Aes ;o@4 DG

@D



/ut of the )99 respondents DG respondents flatly refused to recommend ;estle

chocolate to others, however @4 respondents acceded to recommend others.

CHAPTER-

9INDIN2) AND RECO//ENDATION)

9INDIN2)

@



;owadays, Chocolates have become much popular among Aoungsters. Eids

die of chocolates. # study has been conducted to fumble out the consumer's

perception about the ;estle chocolate. indings of survey are here as under 1

Cadbury's chocolates are dominating the chocolate industry and is most

preferred Chocolate.

;estle's chocolate is second largest preferred chocolate as the result of the

survey enunciates.

Though most of the respondents admit that this is health ha%ard but still the eat

and allow their kids too. *owever they consider that e-cuse use of chocolates

if health ha%ard.

Taste is the most considered factor at the time of buying.

#dvertisement put a big impact over the consumers.

Choco is the most preferred product of chocolates among all the chocolate

products.

<enomination of 6s. )9 is most preferred denomination. for purchasing

chocolates.

/nly a number of people buy chocolate for their family.

unch is not a popular chocolate of ;estles according to the survey.

RECO//ENDATION)

"rices of chocolates should be reduced so that it may reach each M every

pocket.

@J



<ifferent color M taste of chocolate should be introduced in market to attract a

large segment of customers.

#dvertisements should be made more attractive with the presence of more M

more celebrities. +pper age =roup &above @9 years should be targeted more M more as it is

still an untapped area by the chocolate industry.

"ackaging should be made more attractive because packaging has significant

impact on the buying behavior of chocolate customers

#ction should be taken against the retailers selling e-piry dated products and

are not only putting the health of consumer in dange but also defaming the

name of the company. There should be concessional pack on family pack chocolates.

Toll free number should be provided for the consumer for any information,

complaint or suggestion to the company at any moment.

6ural market is should also be targeted to e-pend the business.

QU)TIONNAIRE

<ear 3ir5adam

@G



I am Tarun /uk,i:a, an B# @th 3em. student of <epartment of Busines

#dministration, Ch. <evi $a +niversity, 3irsa. #s a part of my 6esearch "ro2ect, I am

conducting a survey on Consumer Perce*tion a+out Nestle C,ocolate in 3irsa City.

I assure you that all the information provided would be kept strictly confidential and

will be used only for research purposes only.

RE)PONDENT PRO9I4E

). #ge =roup &in yrs1 Below 49& 494H& 898H&

@9@H& D9 M above &

4. =ender &51 XXXXXXXXX

8. *ighest >ducation1 XXXXXXXXXXXXXXXXXXX

@. /ccupation1 XXXXXXXXXXXXXXXXXXXXXX

% Do 0ou eat c,ocolate8

Aes ᦥ ;o ᦥ

7,ic, com*an0s c,ocolate 0ou *refer 8

#mul ᦥ ;estle ᦥ

Cadbury ᦥ #ny other ᦥ

Ho$ $ould 0ou rate t,e Nestle C,ocolate taste8

Better than others ᦥ ;o difference ᦥ

7orse than others ᦥ

> 7,ic, flaor of c,ocolate do 0ou like most8

Choco ᦥ /range ᦥ Crunchi ᦥ

;uts ᦥ ilk ᦥ 7afers ᦥ

7,0 do 0ou eat c,ocolate8

Taste ᦥ *abit ᦥ *unger ᦥ

3tatus ᦥ

' 7,ic, factor makes 0ou to +u0 a *articular +rand of c,ocolate8

#dvertisement ᦥ 3uggested by friends ᦥ

Taste ᦥ "rice Consideration ᦥ #ny other ᦥ

@H



Ho$ often 0ou +u0 c,ocolates8

<aily ᦥ /ccasionally ᦥ

= Do 0ou *urc,ase c,ocolates for 0our o$n or for gift *ur*ose8

or own ᦥ or gift purpose ᦥ

& According to 0ou $,at matters more *rice or ualit0 8

"rice ᦥ Vuality ᦥ Both ᦥ

%@ 7,ic, denomination c,ocolate 0ou +u0 most8

+pto )9 6s. ᦥ ))49 6s. ᦥ

ore than 49 6s. ᦥ

%% Do 0ou t,ink c,ocolates are ,ealt, ,aard8

Aes ᦥ ;o ᦥ

% Hae 0ou eer e3*erienced an0 t,ing aderse a+out Nestle C,ocolates8

Aes ᦥ ;o ᦥ

% If 0es" $,at $as t,e *ro+lem

6egarding taste ᦥ 6egarding !uality ᦥ

#ny other YYYY

%> 7,ic, *roduct of c,ocolate 0ou eat most 8

;estle Eit Eat ᦥ ;estle unch ᦥ

;estle ilky Bar ᦥ

% 7ould 0ou recommend Nestle c,ocolates to ot,er8

Aes ᦥ ;o ᦥ

BIB4IO2RAPH1

D9



7EB)ITE);-

www.nestle.com

www.thehindubusiness.com

www.etstrategicmarketing.com www.forum.nestle.pl

/A2ALINE);-

?artalap aga%ine, ;estle India $imited

3ampark aga%ine, ;estle India $imited.

=lobe aga%ine, ;estle India $imited.

ilwartan aga%ine, ;estle India $imited.

;estle employee information handbook, ;estle India $imited, oga.

BOO);-

NA/E AUTHOR arketing anagement E/T$>6 arketing# anagerial Introduction =#;<*I









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