A COMPARITIVE STUDY OF CONSUMER PREFERENCE TOWARDS CADBURY AND NESTLE CHOCOLATES.

PROJECT REPORT SUBMITTED TO PTU, IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION 2012-2013

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SUBMITTED BY:

College name

DECLARATION
Hereby declare that the project report entitled A COMPARITIVE STUDY OF CONSUMER PREFERENCE TOWARDS NESTLE AND CADBURY CHOCOLATES submitted for the degree of Master of Business Administration, is my original work and the project report has not formed the basis for the award of any diploma, degree, associate ship, fellowship or similar other titles. It has not been submitted to any other university or institution for the award of any degree or diploma.

Place: Ludhiana Date:

TABLE OF CONTENTS
SR. NO. 1 ACKNOWLEDGEMENT 2 LITERATURE RIVIEW 3 INTRODUCTION 4 SCOPE OF STUDY 5 OBJECTIVES 6 METHODOLOGY 7 RESULTS & ANALYSIS 8 DISCUSSION OF IMPLICATION 9 CONCLUSION 10 11 REFERENCES APPENDICES 32 33 34 31 16 - 30 14 - 15 13 10 to 11 12 5 to 9 4 TOPIC PAGE NO.

ACKNOWLEDGEMENT
I would like to thank the centre head of _______________________for giving me the opportunity to do this management thesis. I would also like to thank my mentor and guide _________________________for her consistent guidance and support.

I would also thank ____________________________for his advice and for providing the necessary inputs which were of great benefit to me.

Lastly I would like to thank my parents and friends ________________ who motivated me and helped me complete my management thesis.

INTRODUCTION
In this research I have survey the product performance and buying behavior of two famous brands of chocolates Nestle and Cadbury, which are consumed by people of all ages. During this research I would be interacting with people of North Goa. After this research I would come to know how people perceives these products on the variables like price, quality, advertisement, satisfaction, taste, packaging, brand loyalty etc. I also would come to know which particular brand of chocolate is most preferred by people of different age groups.

In this research I would have to survey and find out how frequently and how much chocolate people consume, whether they buy small, big or family pack. Trend of ongoing changes in their likings would be shown in the report. In this report I would explain the entire research and facts product wise with the help of graphs and would compare both companies.

CONSUMER PREFERENCE
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 successful marketer, 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 services according to the likings of the consumers. Gone are the days when the concept of market was let the buyers beware or when the market was mainly the sellers market. Now the whole concept of consumers sovereignty prevails.

The manufacturers produce and the sellers sell whatever the consumer likes. In this sense, consumer is the supreme in the market. As consumers, we play a very vital role in the health of the economy local, national or international. The decision we make concerning our consumption behavior affect the demand for the basic raw materials, for the transportation, for the banking, for the production; they effect the employment of workers and deployment of resources and success of some industries and failures of others. Thus marketer must understand this. Preference (or "taste") is a concept, used in the social sciences, particularly economics. It assumes a real or imagined "choice" between alternatives and the possibility of rank ordering of these alternatives, based on happiness, satisfaction, gratification, enjoyment, utility they provide. More generally, it can be seen as a source of motivation.
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In cognitive sciences, individual preferences enable choice of objectives/goals. The study of the consumer preference not only focuses on how and why consumers make buying decision, but also focuses on how and why consumers make choice of the goods they buy and their evaluation of these goods after use. So for success of any company or product promotion it is very necessary to depart its concentration towards consumer preference.

SCOPE OF THE STUDY

As learning is a human activity and is as natural, as breathing. Despite of the fact that learning is all pervasive in our lives, psychologists do not agree on how learning takes place. How individuals learn is a matter of interest to marketers. They want to teach consumers in their roles as consumers. They want consumers to learn about their products, product attributes, potential consumers benefit, how to use, maintain or even dispose of the product and new ways of behaving that will satisfy not only the consumers needs, but the marketers objectives.

The scope of my study restricts itself to the analysis of consumer preferences and consumption of Cadbury and Nestle Chocolates. There are many other brands of chocolates available but my study is limited to two major players of chocolates leaving behind the others. The scope of my study is also restricts itself to North Goa region only.

OBJECTIVES OF THE STUDY

This project is based on the comparative study consumer Preference towards Nestle and Cadbury chocolates. Objectives of the study are: With respect to the chocolate selected and rated as no 1 To study sweetness affecting the purchasing decision of customers. To study the packaging of chocolates affecting the purchasing decision of chocolate buyers. Brand of chocolates affecting the purchase decision of chocolate buyer.

LIMITATIONS OF THE STUDY

In attempt to make this project authentic and reliable, every possible aspect of the topic is kept in mind. Nevertheless, despite of fact constraints were at play during the Formulation of this project. The main limitations are as follows: Due to limitation of time only few people would be selected for the study. So the sample of consumers would not enough to generalize the findings of the study.

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RESEARCH METHODOLOGY
This chapter describes the methodology of the study. This project is based on information collected from primary sources as well as secondary sources. After the detailed study, an attempt would be made to present comprehensive analysis of consumption of Cadbury and nestle chocolates consumed by the people. The data would be used to cover various aspects like consumption, consumers preference and customers satisfaction regarding Cadbury and Nestle chocolates. In collecting requisite data and information regarding the topic selected, I would go to the residents of Ludhiana city and also some retailers to collect the data. Survey design: A related sample of population was selected on the basis of the overall population of Ludhiana and questionnaires were made. Sample Size and Design: A sample of 100 people was taken on the basis of the formula calculation. The actual consumers would be contacted on the basis of random sampling. The target people will be anyone who eats Cadbury or nestle chocolate only. Sampling Frame: All the customers who buy Cadbury chocolates and Nestle chocolates. Research Instrument: This work is carried out through questionnaires. The questions included are multiple choice questions.

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

Data Analysis: The data is analyzed on the basis of suitable tables by using mathematical techniques. The technique that I will use is bar technique for comparing the different chocolates under each brand i.e. Cadbury and nestle. And secondly hypothesis testing would is also used together with Chi Square test. Hypothesis 1. For sweetness of chocolates Ho : p1 p2 H1 : p1 = p2 Where p1 = proportion of people preferring Cadbury chocolates due to sweetness. P2 = proportion of people preferring Nestle chocolates due to sweetness. 2. For packaging of chocolates Ho : p3 p4 H1 : p3 = p4
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Where p3 = proportion of people preferring Cadbury chocolates due to packaging. P4 = proportion of people preferring Nestle chocolates due to packaging. 3. For Brand Ho : p5 p6 H1 : p5 = p6 Where p5 = proportion of people preferring Cadbury chocolates due to the Brand. P4 = proportion of people preferring Nestle chocolates due to the Brand.
Attributes Sweetness price Packaging Cadbury p1 p3 p5 Nestle p2 p4 p6

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Analysis
ANALYSIS FOR CADBURY ONLYIn the next finding the 3 attribute in the study that is Sweetness (taste), brand and packaging are analyzed to find out which is the most dominant attribute with respect to Cadbury chocolates.
Table 2 - For Cadbury Finding the dominant attribute by ranking them (1 highest and 5 lowest) Rankings No of 1s No of 2s No of 3s No of 4s No of 5s TOTAL 105 =50 204=80 173=51 62=12 31=3 196 Brand 145=70 224=88 83=24 82=16 41=4 202 Packaging 105=50 194=76 83=24 142=28 51=5 183

From table 2 we can see that Brand is the most dominant attribute for Cadbury (202) followed by Sweetness (196) and finally Packaging (183). The calculation is done by adding the rankings of the attributes, for example in the above table the total number of 1s received for Sweetness is 10 and these 10 responses are multiplied with 5 because it is the most preferred. Similarly for sweetness the total number of 5s received is 3 and it being the lowest value it is multiplied by 1 since its the least preferred by those respondents.

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1) The respondents were further divided into Sweetness preferring and nonsweetness preferring depending on whether they considered sweetness as a attribute in their purchase of Cadbury chocolate. Here we find whether Sweetness has any association with the purchase of Cadbury chocolate. We test the relationship using chi-square method. TABLE 3 Sweetness of Cadbury Chocolates
DAIRYMILK 5-STAR PERK TEMPTATION/ CLEBRATON SWEETNESS NO FOR SWEETNESS TOTAL 10 1 5 3 4 1 3 1 8 3 30 9 FRUIT AND NUT TOTAL

11

11

39

Note: 2= 19.7511 , for =4; Significant at 0.05 level

TABLE 4 Calculations with regard to Sweetness

o 10 5 4 3 8 1 3 1 1 3

e 8.46 0.97 3.84 3.07 8.46 2.53 1.84 1.15 0.92 2.53

o e 1.54 4.03 0.16 -0.07 -0.46 -1.53 1.16 -0.15 0.08 0.47

(o e )2 2.37 16.2 0.025 0.049 0.211 2.34 1.345 1.1225 0.0064 0.220 TOTAL

(o e )2/ e 0.280 16.70 0.00651 0.0159 0.0249 0.924 0.730 0.976 0.006956 0.0869 19.7511

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ACCEPTED REGION

2 = 19.751

9.488(tabulated value) Fig no 1 From the above tables we see that the calculated chi-square value is 19.751 and the table value is found to be 9.488 for 0.05 degree of freedom. If we compare it with figure1 we can observe that the calculated and the table value f does not all fall in the accepted region that is the un-shaded region, we can conclude that the null hypothesis is rejected and alternate is accepted.

Hence there is association between sweetness and Cadbury chocolate purchase. That is respondents purchase Cadbury chocolate due to sweetness. Where o is observed frequency and e expected frequency.

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2) The next is to find whether Brand of Cadbury has any association while chocolate purchase. We test the association with chi-square method. TABLE 5 Brand of Cadbury Chocolates
DAIRYMILK 5STAR PERK TEMPTATION/CLEBRATON FRUIT AND NUT 8 5 TOTAL

BRAND NON BRANDED TOTAL

6 4

9 2

7 0

6 1

36 12

10

11

13

48

Note: 2= 6.725 , for =4; Significant at 0.05 level

TABLE 6 Calculations with regard to Brand

o 6 9 7 6 8 4 2 0 1 5

e 7.5 8.25 5.25 5.25 9.75 2.5 2.75 1.75 3.25 3.35

o e -1.5 0.75 1.75 0.75 -1.75 1.5 -0.75 -1.75 -2.25 1.75

(o e )2 2.25 0.562 3.062 0.562 3.062 2.25 0.56 3.06 5.06 3.06 TOTAL

(o e )2/ e 0.3 0.068 0.583 0.107 0.314 0.9 0.204 1.75 1.557 0.942 6-725

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Accepted Region

2 = 6.725 FIGURE 2

9.488 (tabulated value)

From the above tables we see that the calculated chi-square value is 6.725 and the table value is found to be 9.488 for 0.05 degree of freedom. If we compare it with figure2 we can observe that the calculated and the table value falls in the accepted region that is the un-shaded region, we can conclude that the null hypothesis is accepted and alternate is rejected.

Hence there is association between brand and Cadbury chocolate purchase. That is respondents purchase Cadbury chocolate due to its brand. Where o is observed frequency and e expected frequency.

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3) The next is to find whether Packaging of Cadbury has any association while chocolate purchase. We test the association with chi-square method. TABLE 7 Packaging of Cadbury Chocolates
DAIRYMILK 5STAR PERK TEMPTATION/CLEBRATON FRUIT AND NUT 10 TOTAL

ATTRACTED TO PACKAGING NOT ATTRACTED TO PACKAGING TOTAL

27

19

10

15

46

Note: 2= 10.186 , for =4; Significant at 0.05 level TABLE 8 Calculations with regard to Packaging -

o 8 6 1 2 10 1 4 6 3 5

e 5.28 5.86 4.108 2.93 8.80 3.71 4.13 2.89 2.06 6.19

o e 2.72 0.14 -3.108 -0.93 1.2 -2.71 -0.13 3.11 0.937 -1.19

(o e )2 7.39 0.0196 9.659 0.864 1.44 7.34 0.0169 9.67 0.877 1.416 TOTAL

(o e )2/ e 1.40 0.00334 2.351 0.295 0.163 1.97 0.004092 3.346 0.426 0.228 10.186

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Accepted Region

Rejected region

2 = 10.186

9.488 (tabulated value)

FIGURE 3 From the above tables we see that the calculated chi-square value is 10.186 and the table value is found to be 9.488 for 0.05 degree of freedom. If we compare it with figure3 we can observe that the calculated and the table value does not fall in the accepted region that is the un-shaded region, we can conclude that the null hypothesis is rejected and alternate is accepted.

Hence there is no association between packaging and Cadbury chocolate purchase. That is respondents do not purchase Cadbury chocolate due to its packaging. Where o is observed frequency and e expected frequency.

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ANALYSIS FOR NESTLE ONLYIn the next finding the 3 attribute in the study that is Sweetness (taste), brand and packaging are analyzed to find out which is the most dominant attribute with respect to Nestle chocolates. From table 9 we can see that Sweetness is the most dominant attribute for Nestle (156) followed by Packaging (148) and finally Brand (144). The calculation is done by adding the rankings of the attributes, for example in the above table the total number of 1s received for Sweetness is 8 and these 8 responses are multiplied with 5 because it is the most preferred. Similarly for sweetness the total number of 5s received is 3 and it being the lowest value it is multiplied by 1 since its the least preferred by those respondents.
Table 9 - For Nestle Finding the dominant attribute by ranking them (1 highest and 5 lowest) Rankings No of 1s No of 2s No of 3s No of 4s No of 5s TOTAL Sweetness 85 =40 194=76 93=27 52=10 31=3 156 Brand 75=35 124=48 163=48 62=12 31=3 144 Packaging 95=45 164=64 63=18 82=16 51=5 148

1) The respondents were further divided into Sweetness preferring and non-sweetness preferring depending on whether they considered sweetness as a attribute in their purchase of Nestle chocolate. Here we find whether Sweetness has any association with the purchase of Nestle chocolate. We test the relationship using chi-square method.

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TABLE 10- Sweetness of Nestle Chocolates

NESTLE CLASSIC BAR-ONE MUNCH MILKY -BAR KIT-KAT TOTAL

SWEETNESS NO FOR SWEETNESS TOTAL

4 4

8 2

7 1

7 0

1 1

27 8

10

35

Note: 2= 6.824 , for =4; Significant at 0.05 level

TABLE 11 Calculations with regard to Sweetness

o 4 8 7 7 1 4 2 1 0 1

e 6.17 7.71 6.17 5.4 1.54 1.82 2.28 1.82 1.6 0.45

o e -2.17 0.29 0.828 1.6 -0.54 2.18 -0.28 -0.82 -1.6 0.55

(o e )2 4.708 0.084 0.686 2.56 0.291 4.75 0.0784 0.672 2.56 0.302 TOTAL

(o e )2/ e 0.763 0.010 0.111 0.474 0.189 2.611 0.034 0.30 1.6 0.672 2 = 6.824

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ACCEPTED REGION

2= 6.824

9.488(tabulated value) Fig no 4

From the above tables we see that the calculated chi-square value is 6.824 and the table value is found to be 9.488 for 0.05 degree of freedom. If we compare it with figure4 we can observe that the calculated and the table value falls in the accepted region that is the un-shaded region, we can conclude that the null hypothesis is accepted and alternate is rejected.

Hence there is association between sweetness and Nestle chocolate purchase. That is respondents purchase Nestle chocolate due to sweetness. Where o is observed frequency and e expected frequency.

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2) The next is to find whether Brand of Nestle has any association while chocolate purchase. We test the association with chi-square method. TABLE 12 Brand of Nestle Chocolates
NESTLE CLASSIC BAR-ONE MUNCH MILKY -BAR KIT-KAT TOTAL

BRAND NO FOR BRAND TOTAL

4 4

8 2

7 1

7 0

1 1

27 8

10

35

Note: 2= 6.808 , for =4; Significant at 0.05 level

TABLE 13 Calculations with regard to Brand

o 4 8 7 7 1 4 2 1 0 1

e 6.171 7.714 6.171 5.4 1.54 1.828 2.28 1.828 1.6 0.45

o e -2.171 0.286 0.829 1.6 -0.54 2.172 -0.28 -0.828 -1.6 0.55

(o e )2 4.713 0.0817 0.687 2.56 0.291 4.717 0.078 0.685 2.56 0.30 TOTAL

(o e )2/ e 0.763 0.0106 0.1113 0.474 0.189 2.580 0.034 0.375 1.6 0.672 2 = 6.808

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Accepted Region

2= 6.808 FIGURE 5

9.488 (tabulated value)

From the above tables we see that the calculated chi-square value is 6.808 and the table value is found to be 9.488 for 0.05 degree of freedom. If we compare it with figure 5 we can observe that the calculated and the table value falls in the accepted region that is the un-shaded region, we can conclude that the null hypothesis is accepted and alternate is rejected.

Hence there is association between brand and Nestle chocolate purchase. That is respondents purchase Nestle chocolate due to its brand. Where o is observed frequency and e expected frequency.

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3) The next is to find whether Packaging of Nestle has any association while chocolate purchase. We test the association with chi-square method. TABLE 14 Packaging of Cadbury Chocolates
NESTLE CLASSIC BAR-ONE MUNCH MILKY -BAR KIT-KAT TOTAL

PACKAGING NO FOR PACKAGING TOTAL

4 4

7 3

3 6

6 0

5 0

25 13

10

38

Note: 2= 12.83 , for =4; Significant at 0.05 level

TABLE 15
Calculations with regard to Packaging -

o 4 7 3 6 5 4 3 6 0 0

e 5.26 6.57 5.921 3.94 3.28 2.73 3.42 3.07 3.94 1.710

o e -1.26 0.43 -2.921 2.06 1.72 1.27 -0.42 2.93 -3.94 -1.71

(o e )2 1.58 0.184 8.53 4,243 2.958 1.612 0.176 8.58 15.52 2.924 TOTAL

(o e )2/ e 0.301 0.0280 1.441 1.077 0.901 0.590 0.051 2.796 3.94 1.71 2 = 12.83

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Accepted Region

Rejected region

9.488 (tabulated value)

2= 12.83

FIGURE 6 From the above tables we see that the calculated chi-square value is 12.83 and the table value is found to be 9.488 for 0.05 degree of freedom. If we compare it with figure 6 we can observe that the calculated and the table value does not fall in the accepted region that is the un-shaded region, we can conclude that the null hypothesis is rejected and alternate is accepted. Hence there is no association between packaging and Nestle chocolate purchase. That is respondents do not purchase Nestle chocolate due to its packaging. Where o is observed frequency and e expected frequency.

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DISCUSSION OF IMPLICATION
Referring to Table 1 we can say that percentage of respondents preferring Cadbury is 56% and respondents preferring Nestle is 44%. The respondents were asked to rank the sub-chocolates of their preferred Company (Cadbury or nestle) it was found out that from$ the survey that in Cadbury brand more respondents prefer Cadbury Fruit and nuts chocolate (17) , then followed by 5-star (12) , Dairy-milk (11) , Perk (9) and lastly Temptation (7).

Whereas in Nestle the most preferred chocolate is Nestle classic and Bar-one (11) followed by Munch (9) , Milky-bar (7) and lastly Kit-kat (6).

Using the chi-square test we tried to find if there is any association of various attributes of the study towards purchase of chocolate, but the results showed that none of the attributes studied had single handedly any association with purchase of chocolates.

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CONCLUSION
The study proposes that the attributes Sweetness, Brand and packaging had influence in the purchase of chocolates. The study showed that with regard to sweetness respondents preferred to nestle chocolates. Whereas with respect to Brand and packaging respondent prefer Cadbury chocolates over Nestle

From the survey it was also found out that in Cadbury brand more respondents prefer Cadbury Fruit and nuts chocolate (17) and in nestle Nestle classic and Barone (11) were chosen by respondents.

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QUESTIONNAIRE
PROJECT REPORT ON CONSUMER PREFERENCE TOWARDS NESTLE AND CADBURY CHOCOLATES Q1. Do you eat chocolate? Yes

No

Q2. Which brand of chocolate do you prefer? Cadbury Nestle Q3. If Cadbury rank the following chocolates according to your preference. (1 for Best and 5 for Last) Dairy Milk 5- star Perk Temptation or celebration Fruit and nuts If Nestle rank the following chocolates according to your preference. (1 for Best and 5 for Last) Nestle classic Bar- one Munch Milky- bar Kit- Kat WITH RESPECT TO THE CHOCLATE RANKED 1 ANS THE FOLLOWING Q4. What pack do you purchase? Small Medium Big/ Large Q5. How frequently do you purchase chocolates? Daily Monthly Weekly Hardly Q6. Does Sweetness (taste) attract you to purchase the selected chocolate? Strongly Agree Agree Cant say Disagree Q7.Does packaging attracts you to buy chocolate? Strongly Agree Agree Cant say Q8. Does you purchase of chocolate depend on brand? Strongly Agree Agree Cant say

Strongly Disagree

Disagree

Strongly Disagree

Disagree

Strongly Disagree

Q9. Do you think the pricing done for the chocolate you buy is value for money? Yes No Cant say PERSONEL DETAILS Name - __________________________________ City - _____________ Age Group 0-10 20-30 Gender Male 10-20 30 and above Female

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BIBLIOGRAPHY
Literature 1. C. Anandan, To study the influence of packaging affecting brand selection in toothpaste industry, Brand management, vole- No 3 page 45-57. 2. Protik Basu, Research on consumer decision analysis for Purchase of fruit Drinks,http://www.scribd.com/document_downloads/13103855?extension= pdf&skic. 3. Searching for buy button in the consumers brains, Advertising Express, vol-4, page 14. 4. Consumer satisfaction, Marketing Mastermind vol 4, page 13. 5. Retailing in India, Marketing mastermind vol 5, page 59. 6. Buying Behavior, Marketing mastermind vol 4, page 21 7. Nestle v/s Cadbury http://www.scribd.com/document_downloads/14817717?extension=doc&se cret_password=&step_intrested=true 8. I:\nestle\Cadbury's, Nestle lose market share to imported chocolates Business News - News - MSN India - News.htm 9. I:\nestle\Chocolate industry feel the pinch of fierce competition.htm 10. www.cadbury.com www.nestle.com

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