INTRODUCTION TO THE TOPIC

MEANING OF CHOCOLATE
1. A preparation of the seeds of cacao, roasted, husked and ground (without removing any of the fat), often sweetened and flavored, as with vanilla. 2. A beverage or confection made from this. 3. Dark brown

ORIGIN OF CHOCLATE
The word chocolate comes from the Mayan word xocoatl, and the word cocoa from the Aztec chocolate .in Mexico, the beverage was called chocolate, from lath (water) and choco. Supposedly the Spaniards found the Mexican word hard to pronounce and called it cocao.

FROM COCOA TO CHOCOLATE

Sorting clearing, frying, crushing, grinding, is the only small part of stages of production cycle transforming cocoa beans in chocolate which we eat. Chocolate is really the unique product, tasty, highly nutritive, and capable to be stored by years without change of properties. It contains 50-55% of carbohydrates, 32-35% of fat, 56% of fibers and also tannin substances.

HISTORY
The discovery of cocoa was only a first step in the direction of chocolate. The Mayas were the first to cultivate the cocoa bean for the fruits it yielded .they used the beans as an ingredients in their favorite chocolate drink xocotlat. Legend suggests that the first beans came out of paradise and lent wisdom and power to the person that ate them. for the obvious reasons , the use of cocoa was kept to a minimum by the emperors. Before the Spanish explorers discovered the new world, chocolates and other exotic foods were totally unknown in Europe. Columbus was the first European to become acquainted with cocoa, but he wasnt actually impressed. During one of his conquests in the new world, he met the Aztecs. For many generations, they drank an infusion of grilled seeds and spices. This mixture tasted disgusting and it also contained cocoa beans. The Aztecs adopted the idea of cocoa consumption from the Mayas. For the mayas , cocoa beans were very important , not only were they a popular means of exchange , they also had a religious value . The Mayas sacrificed cocoa beans at the funerals of the upper class.

Fig no.1

EVOLUTION OF CHOCOLATES
The origin of chocolate can be traced back to the ancient Maya and Aztec civilizations in Central America, who first enjoyed chocolati a much-prized spicy drink made from roasted cocoa beans. Throughout its history, whether as cocoa or drinking chocolate beverage or confectionary treat, chocolate has been a much sought after food.

The Aztec empire

Chocolate(in the form of a luxury drink) was consumed in large quantities by the aztecs: the drink was described as finely ground, soft, foamy, reddish, bitter with chilli water, aromatic flowers, vanilla and wild bee honey. The dry climate meant the Aztecs were unable to grow cocoa trees, and had to obtain supplies of cocoa beans from tribute or trade

Don Cortes
The Spanish invaded Mexico in the 16th century, by this time the Aztecs had created a powerful empire, and the Spanish armies conquered Mexico. Don Cortes was made captain general and governor of Mexico. When he returned to Spain in1528 he loaded his galleons with cocoa beans and equipment for making the chocolate drink. Soon chocolate became a fashionable drink enjoyed by the rich in Spain.

Chocolate across Europe

An Italian traveler, Francesco carletti, was the first to break the Spanish monopoly. He had visited Central America and seen how the Indians prepared the cocoa beans and how they made the drink, and by 1606 chocolate was well established in Italy. 4

Drinking chocolate
The secret of chocolate was taken to France in 1615, when Anne, daughter of Phillip 2 of Spain married king Louis 13 of France The French court enthusiastically adopted this new exotic drink, which was considered to have medicinal benefits as well as being a nourishing food. Gradually the custom of drinking chocolate spread across Europe, reaching England in the 1650s

First chocolate for eating

Up until this point all chocolate recipes were based on plain chocolate. It was an English doctor, Sir Hanss sloane, who- after traveling in south America- focused on cocoa and food values, bringing a milk chocolate recipe back to England. The original Cadbury milk chocolate was prepared to his recipe.

History:
The earliest record of chocolate was over fifteen hundred years ago in the central America rain forests, where the tropical mix of high rain fall combined with high year round temperatures and humidity provide the ideal climate for cultivation of the plant from which chocolate is derived, the cacao tree. Chocolate is made from the cocoa bean, found in pods growing from the trunk and lower branches of the cacao tree, Latin name theobroma cacao meaning food of the gods Cacao was corrupted into the more familiar cocoa by the early European explorers. The Maya brewed a spicy, bittersweet drink by roasting and pounding the seeds of the cacao tree with maize and capsicum peppers and letting the mixture ferment. This drink was reserved for use in ceremonies as well as for drinking by the wealthy and religious elite; they also ate cacao porridge. The Aztecs, like the Mayans, also enjoyed cacao as a beverage fermented from the raw beans, which again featured prominently in ritual and as a luxury available only to the very 5

wealthy. The Aztecs called this drink xocolatl, the Spanish conquistadors found this almost impossible to pronounce and so corrupted it to the easier chocolate the English further changed this to chocolate. The Aztecs regarded chocolate as an aphrodisiac and their emperor, Montezuma reputedly drank it fifty times a day from a golden goblet and is quoted as saying of xocolatl: the divine drink, which builds up resistance and fights fatigue. A cup of this precious drink permits a man to walk for a whole day without food

Chocolate in Europe
Xocolatl! or chocolate or chocolate as it became known, was brought to Europe by Cortez, by this time the conquistadors had learned to make the drink more palatable to European tastes by mixing the ground roasted beans with sugar and vanilla ( a practice still continued today), thus offsetting the spicy bitterness of the brew the Aztecs drank. The first chocolate factories opened in Spain, where the dried fermented beans brought back from the new world by the Spanish treasure fleets were roasted and ground, and by the early 17th century chocolate powder from which the European version of the drink was made- was being exported to other parts of Europe. The Spanish kept the source of the drink- the beans- a secret for many years, so successfully in fact, that when English buccaneers boarded what they thought was a Spanish treasurer galleon in 1579, only to find it loaded with what appeared to be dried sheeps droppings, they burned the whole ship in frustration. If only they had known, chocolate was so expensive at that time, that it was worth its weight in silver ( if not gold), chocolate was treasure indeed ! Within a few years, the cocoa beverage made from the powder produced in Spain had become popular throughout Europe, in the Spanish Netherlands, Italy, France, Germany and in about 1520 it arrived in England. The first chocolate house in England opened in London in 1657 followed rapidly by many others. Like the already well established coffee houses, they were used as clubs where the wealthy and business community met to smoke a clay pipe of tobacco, conduct business and socialize over a cup of chocolate.

Back to the Americas

Events went full circle when English colonists carried chocolate (and coffee) with them to Englands colonies in North America. Destined to become the United States of America and Canada, they are now the worlds largest consumers by far of both chocolate and coffee, consuming over half of the words total production of chocolate alone.

The Quakers
The Quakers were, and still are, a pacifist religious sect, an offshoot of the puritans of English civil war and pilgrim fathers fame and a history of chocolate would not be complete without mentioning their part in it. Some of the most famous names in chocolate were Quakers, who for centuries held a virtual monopoly of chocolate making in the English speaking world fry, Cadbury and row tree are probably the best known. Its probably before the time of the English civil war between parliament and king Charles 1st that the Quakers who evolved from the puritans, first began their historic association with chocolate. Because of their pacifist religion, they were prohibited from many normal business activities, so as an industrious people with a strong belief in the work ethic (like the puritans), they involved themselves in food related businesses and did very well. Baking was a common occupation for them because bread was regarded as the biblical staff of life, and bakers in England were the first to add chocolate to cakes so it would be a natural progression for them to start making pure chocolate. They were also heavily involved in breakfast cereals but thats another story. What is certain is that the fry, row tree and Cadbury families in England among others, began chocolate making and in fact Joseph fry of fry &sons (founded 1728 in Bristol, England) is credited with producing and selling the worlds first chocolate bar. Frys have now all but disappeared (taken over by Cadbury) and row tree have merged Swiss company nestle, to form the largest chocolate manufacturer in the world. Cadbury have stayed with chocolate production and are now, if not quite the largest, probably one of the best-known chocolate makers in the world.

Chocolate as we know it
The first mention of chocolate being eaten in solid form is when bakers in England began adding cocoa powder to cakes in the mid 1600s. Then in 1828 a Dutch chemist, Johannes van houten, invented a method of extracting the bitter tasting fat or cocoa butter from the roasted ground beans, his aim was to make the drink smoother and more palatable, however he unknowingly paved the way for solid chocolate as we know it. Chocolate as we know it today first appeared in 1847 when fry & sons of Bristol, England mixed sugar with cocoa powder and cocoa butter (made by the van houten process) to produce the first solid chocolate bar then in1875 a Swiss manufacturer, Daniel peters, found a way to combine (some would say improve, some would say ruin) cocoa powder and cocoa butter with sugar and dried milk powder to produce the first milk chocolate.

CHOCOLATE PRODUCTION

The cocoa-bean -- the heart of the sweetest delicacy in the world -- is bitter! This is why, up to the 18th century some native tribes ate only the sweetish flesh of the cocoa fruit. They regarded the precious bean as waste or used it, as was the case among the Aztecs, as a form of currency. 8

TheVarieties
There are two quite different basic classifications of cocoa, under which practically all varieties can be categorized: Criollo and Forastero cocoas. The pure variety of the Criollo tree is found mainly in its native Equador and Venezuela. The seeds are of finer quality than those of the Forastero variety. They have a particularly fine, mild aroma and are, therefore, used only in the production of high-quality chocolate and for blending. However, Criollo cocoa accounts for only 10% of the world crop. The remaining 90% is harvested from trees of the Forastero family, with its many hybrids and varieties. The main growing area is West Africa. The cocoa tree can flourish only in the hottest regions of the world.

TheHarvest
immediately after harvesting, the fruit is treated to prevent it from rotting. At fermentation sites either in the plantation or at, collecting points, the fruit is opened.

Fermentation
The fermentation process is decisive in the production of high quality raw cocoa. The technique varies depending on the growing region.

Drying
After fermentation, the raw cocoa still contains far too much water; in fact about 60%. Most of this has to be removed. What could be more natural than to spread the beans out to dry on the sun-soaked ground or on mats? After a week or so, all but a small percentage of the water has evaporated.

Cleaning
Before the real processing begins, the raw cocoa is thoroughly cleaned by passing through sieves, and by brushing. Finally, the last vestiges of wood, jute fibers, sand and even the finest dust are extracted by powerful vacuum equipment. 9

Roasting
The subsequent roasting process is primarily designed to develop the aroma. The entire roasting process, during which the air in the nearly 10 feet high furnaces reaches a temperature of 130 C, is carried out automatically.

Crushingandshelling
The roasted beans are now broken into medium sized pieces in the crushing machine.

Blending
Before grinding, the crushed beans are weighed and blended according to special recipes. The secret of every chocolate factory lies in the special mixing ratios, which it has developed for different types of cocoa.

Grinding
The crushed cocoa beans, which are still fairly coarse are now pre-ground by special milling equipment and then fed on to rollers where they are ground into a fine paste. The heat generated by the resulting pressure and friction causes the cocoa butter (approximately 50% of the bean) contained in the beans to melt, producing a thick, liquid mixture. This is dark brown in color with a characteristic, strong odour. During cooling it gradually sets: this is the cocoa paste. At this point the production process divides into two paths, but which soon join again. A part of the cocoa paste is taken to large presses, which extract the cocoa butter. The other part passes through various blending and refining processes, during which some of the cocoa butter is added to it. The two paths have rejoined.

Cocoa Butter
The cocoa butter has important functions. It not only forms part of every recipe, but it also later gives the chocolate its fine structure, beautiful luster and delicate, attractive glaze.

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Cocoa Powder
After the cocoa butter has left the press; cocoa cakes are left which still contain a 10 to 20% proportion of fat depending on the intensity of compression. These cakes are crushed again, ground to powder and finely sifted in several stages and we obtain a dark, strongly aromatic powder, which is excellent for the preparation of delicious drinks - cocoa. Cocoa paste, cocoa butter, sugar and milk are the four basic ingredients for making chocolate. By blending them in accordance with specific recipes the three types of chocolate are obtained which form the basis of ever product assortment, namely:

Kneading
In the case of milk chocolate for example, the cocoa paste, cocoa butter, powdered or condensed milk, sugar and flavoring - maybe vanilla - go into the mixer, where they are pulverized and kneaded.

Rolling
Depending on the design of the rolling mills, three or five vertically mounted steel rollers rotate in opposite directions. Under heavy pressure they pulverize the tiny particles of cocoa and sugar down to a size of approx. 30 microns. (One micron is a thousandth part of a millimeter.)

Conching
But still the chocolate paste is not smooth enough to satisfy our palates. But within two or three days all that will have been put right. For during this period the chocolate paste will be refined to such an extent in the conches that it will flatter even the most discriminating palate. Conches (from the Spanish word "concha", meaning a shell) is the name given to the troughs in which 100 to 1000 kilograms of chocolate paste at a time can be heated up to 80 11

C and, while being constantly stirred, is given a velvet smoothness by the addition of certain amounts of cocoa butter. A kind of aeration of the liquid chocolate paste then takes place in the conches: its bitter taste gradually disappears and the flavor is fully developed. The chocolate no longer seems sandy, but dissolves meltingly on the tongue. It has attained the outstanding purity, which gives it its reputation.

CONSUMPTION OF CHOCLATES IN INDIA

Chocolate consumption in India is extremely low. Per capita consumption is around 160 gms in the urban areas, compared to 8-10kg in the developed countries. In rural areas, it is even lower. Chocolates in India are consumed as indulgence and not as a snack food. A strong volume growth was witnessed in the early 90s when Cadbury repositioned chocolates from children to adult consumption. The biggest opportunity is likely to stem from increasing the consumer base. Leading players like Cadbury and Nestle have been attempting to do this by value for money offerings, which are affordable to the masses.

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MAJOR PLAYERS

CADBURY (INDIA): A SWEET OPTION

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 teens & adults. 13

Recently, Cadbury Dairy Milk Desserts was launched, specifically to cater to the urge for 'something sweet' after meals.

Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy Milk 2 in 1, a delightful combination of milk chocolate and white chocolate. Giving consumers an exciting reason to keep coming back into the fun filled world of Cadbury.

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HISTORY

Cadbury Dairy Milk has been the market leader in the chocolate category for years. 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. In the early 90's, chocolates were seen as 'meant for kids', usually a reward or a bribe for children. In the Mid 90's the category was re-defined by the very popular `Real Taste of Life' campaign, shifting the focus from `just for kids' to the `kid in all of us'. It appealed to the child in every adult. And Cadbury Dairy Milk became the perfect expression of 'spontaneity' and 'shared good feelings'. The 'Real Taste of Life' campaign had many memorable executions, which people still fondly remember. However, the one with the "girl dancing on the cricket field" has remained etched in everyone's memory, as the most spontaneous & un-inhibited expression of happiness. In the late 90's, to further expand the category, the focus shifted towards widening chocolate consumption amongst the masses, through the 'Khanewalon KO Khane Ka Bahana Chahiye' campaign. This campaign built social acceptance for chocolate consumption amongst adults, by showcasing collective and shared moments. More recently, the 'Kuch Meetha Ho Jaaye' campaign associated Cadbury Dairy Milk with celebratory occasions and the phrase "Pappu Pass Ho Gaya" became part of street language. It has been adopted by consumers and today is used extensively to express joy in a moment of achievement / success.The interactive campaign for "Pappu Pass Ho Gaya" bagged a Bronze Lion at the prestigious Cannes Advertising Festival 2006 for 'Best use of internet and new media'. The idea involved a tie-up with Reliance India Mobile service and allowed students to check their exam results using their mobile service and encouraged those who passed their examinations to celebrate with Cadbury Dairy Milk.The 'Pappu Pass Ho Gaya' campaign also went on to win Silver for The Best Integrated Marketing.

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ITS PRODUCTS:
Cadbury diary milk 5star Perk Celebrations Temptation clairs Gems

S.W.O.T ANALYSIS
STRENGTH: Cadbury has a brand image. It has a high quality. It has a great purity. It has a pool of dedicated and hardworking workforce. Experienced market player. WEAKNESS: Company dose not provide credit to retailers Company. Company has no proper promotion strategy. Complex replacement procedure.
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 Fewer margins to retailers. There is Lack of availability. Distribution is not up to the mark in every area. Lack of salesmen and distributor in some areas in Delhi. There is a problem with storage of Cadbury Chocolate OPPORTUNITY: Sale can be increased by providing the replacement offer to retailers. Increase in retailer margin can enhance the sale of Cadbury Chocolate. Focused approach towards small market can also increase the sale of Cadbury Chocolate. New schemes can be provided to the retailers to attract them to push the sale of Cadbury Chocolate. Regular supply can be easily compete the competitors and increase its own sale. THREATS: More competitors are entering in the market. Competitors are providing more margins to retailers. Competitors also giving replacement facility to retailers. Competitors providing regular supply and strong distribution channel. Competitors also reaching to small market.

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NESTLE (INDIA)

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

Nestle India- Presence Across India Beginning with its first investment in Moga in 1961, Nestls regular and substantial investments established that it was here to stay. In 1967, Nestl set up its next factory at Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the area into soluble tea. The Nanjangud factory (Karnataka), became operational in 1989, the Samalkha factory (Haryana), in 1993 and in 1995 and 1997, Nestl commissioned two factories in Goa at

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Ponda and Bicholim respectively. Nestl India is now putting up the 7th factory at Pant Nagar in Uttaranchal.

Nestle Story
Nestl was founded in 1867 on the shores of Lake Geneva in Vevey, Switzerland and its first product was Farine Lacte Nestl, an infant cereal specially formulated by Henri Nestl to provide and improve infant nutrition. From its first historic merger with the Anglo-Swiss Condensed Milk Company in 1905, Nestl has grown to become the worlds largest and most diversified food Company, and is about twice the size. Nestls trademark of birds in a nest, derived from Henri Nestls personal coat of arms, evokes the values upon which he founded his Company. Namely, the values of security, maternity and affection, nature and nourishment, family and tradition. Today, it is not only the central element of Nestls corporate identity but serves to define the Companys products, responsibilities, business practices, ethics and goals. In 2004, Nestl had around 247,000 employees worldwide, operated 500 factories in approx. 100 countries and offered over 8,000 products to millions of consumers universally. The Companys transparent business practices, pioneering environment policy and respect for the fundamental values of different cultures have earned it an enviable place in the countries it operates in. Nestls activities contribute to and nurture the sustainable economic development of people, communities and nations. Above all, Nestl is dedicated to bringing the joy of Good Food, Good Life to people throughout their lives, throughout the world.

NESTLES PRODUCTS
Kit Kat Kit Kat lite Munch Milkybar 19

Bar one Fun bar

AMUL (a gift for someone you love)

Amul chocolate is made from sugar, cocoa butter, milk solids. Chocolate mass composition milk fat 2%sugar 55% total fat 32.33% (milk fat+ cocoa fat) cocoa solids 7.5% milk solids 20% product specification: meets all requirements under the PFA for boiled sugar confectionary. A GIFT FOR SOMEONE YOU LOVE The brand name AMUL, has taken from the Sanskrit Amoolya, meaning priceless, was suggested by a quality control expert in Anand. The first products with the Amul brand name were launched in 1955. Since then, they have been in use in millions of home in all parts of India and beyond. Today Amul is a symbol of many things: of high quality products sold at reasonable price, availability, service. Amul is the brand name of two million farmers, members of 10,000 village dairy cooperative societies throughout Gujarat. This is the heart of Amul; it vis what is so special about the Amul saga. Amul in 1946 was really an effort to carve out a truly Indian company that would have the involvement of millions of Indians and place direct control in the hands of the farmers. It was a mandate for producing, owning and marketing and above all, building your own truly Indian Brand. Amulss birth was thus a harbinger of the economic independence of our farmer brethren. Today, 173 milk producers cooperative unions and 22 federations play a major role in meeting the demand for packed milk and milk products. Quality packed milk is now available is more than 1,000 cities throughout the length and breadth of India. Amul, therefore, is a brand with a difference. That difference manifests itself in a larger than life purpose. The purpose freedom to farmers by giving total control over procurement, production and marketing.

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PRODUCT PROFILE
Bread spreads:
Amul Butter Amul Lite Low Fat Bread spread Amul Cooking Butter

Cheese Range:
Amul Pasteurized Processed Cheddar Cheese Amul processed Cheese Spread Amul Pizza (Mozzarella) Cheese Amul Shredded Pizza cheese Amul Emmental Cheese Amul Gouda cheese Amul malai Paneer(cottage cheese),Frozen,Refrigerated and Tinned Utterly Delicious Pizza

Curd Products:
Yogi Sweetened Flavored Dahi (Dessert) Amul masti Dahi (Fresh cured) Amul Butter Milk Amul lassee

Milk Drink: Amul cool flavored Milk

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 Amul Cool Kesar Amul Cool Elachi Amul Cool Coffee Amul Cool Rose Amul Cool Strawberry Amul Cool Mango

Health Beverage:
Amul Shakti White Food

Mithaee Range (Ethnic Sweets):

Amul Shrikhand (Mango,Saffron,Almond Pistachio,Cardamon) Amul Amrakhand Amul Mithaee Gulabjamuns Amul Mithaee Gulabjamuns Mix Amul Mithaee Kulfi Mix Avsar Ladoos

UHT Milk Range:

Amul Shakti 3% fat Milk Amul taaza 1.5% fat Milk Amul Gold 4.5% fat Milk Amul Lite Slim & Trim Milk 0% fat Milk 22

 Amul Shakti Toned Milk

Chocolate & Confectionery:

Amul Milk Chocolate Almond Bar Chocozoo

Milk Powder:
Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder

Fresh Milk:
Amul Taaza Toned Milk 3% fat Amul Gold Full Cream Milk 6% fat Amul Shakti Standardized Milk 4.5% fat Amul Slim & Trim Double Toned Milk 1.5% fat Amul Saathi Skimmed Milk 0% fat

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PRODUCT SPECIFICATION

Composition: Milk Fat 2% Sugar 55%

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 Total Fat 32.33% (Milk Fat + Cocoa Fat)

SALES FIGURE
Fig 3.1

Sales Turnover
1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Rs. (Million)
13790 15540 18840 22192 22185 22585 23365 27457 28941 29880

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Fig sales turnover

35000 30000 Rs. million 25000 20000 15000 10000 5000 0 Rs. (Million) year 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

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DISTRIBUTION CHANNEL

MEMBER UNION (PLANT)

DEPOT GODOWN

DISTRIBUTOR

RETAILERS

BOARD OF

CONSUMER

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BRAND PREFERENCE AND CONSUMER BEHAVIOUR

The term consumer behavior refers to the behavior that consumers display in searching for, purchasing, using evaluating and disposing of products and services that they expect will satisfy their needs. The study of consumer behavior is the study of how individuals make decisions to spend their available re-source (time, money, effort) on consumption related items. It includes the study of what they buy, why they buy it, and how often they use it. Information about the pattern of consumption in various segments of society and dynamics of consumer behavior are central to the understanding for developing new concepts in marketing. The essence of modern marketing concept is that all elements of business should be geared towards identifying & satisfying the needs of the consumers.

DECISION MAKING PROCESS

The consumers decision to purchase or reject a product is a moment of final truth for marketer. It signifies whether the marketing strategy has been wise, insightful and effective, or whether it was poorly planned and missed the mark. Thus, marketers are particularly interested in consumers decision making process. We would be discussing a simple model for consumer decision making process.

INPUTS
The input component draws on external influences that serve as a source of information about a particular product and influence a consumers product related values, attitudes and behavior. Chief among these input factors are the marketing mix activities of organizations 28

that attempt to communicate the benefits of their products and services to their potential customer. And the no marketing sociocultural influences which, when internalized affects the consumers decisions.

PROCESS
The process component of the model is concerned with how consumers make decisions. The psychological field represents the internal influences (motivation, perception, learning, personality and attitudes) that affect the consumers decision making processes.

PREPURCHASE ACTIVITY
After the problem is identified the buyer indulges in pre purchase activity. It is under stood that need is a father to a deed. There generally remains a time lag when a person thinks to buy and the actual incidence of buying. During this time the person energizes and is likely to be influenced by various factors. Need arousal drives the consumer to collect information about the required products

EVALUATION OF ALTERNATIVES
While evaluating the consumers tend to use two types of informations: 1. a list of brands from which they plan to make their selection ( the evoked set) 2. the criteria they will use to evaluate each brand The criteria consumers use is expressed in terms of important product attributes. Consumers use certain procedures or rules to facilitate a choice Among multi-attribute objects.

OUTPUT

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the output portion of consumers decision making model concerns two closely associated kinds of post decision activity: purchase behavior and post purchase behavior. The objective of both activities is to increase the consumers satisfaction with his/her purchase.

PURCHASE BEHAVIOUR
Consumers make two types of purchase and repeat purchase .if a consumer purchase a product for the first time and buy a smaller quantity than usual, this purchase would be considered a trial. Thus a trial is the exploratory phase of purchase behavior in which consumers attempt to evaluate a product through direct use.

POST PURCHASE BEHAVIOR

If the new brand is established product category (cola, chewing gum, candies) is found by trial to be more satisfactory or better than other brands, consumers are likely to repeat the purchase. Repeat purchase behavior is closely related to the concept of brand loyalty, which firms try to encourage.

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GROWTH IN CHOCOLATE INDUSTRY IN INDIA

Mega trends: yesterday, today & tomorrow It is worth to note that cocoa beans were introduced to Europe long before Coffee and tea. Columbus brought them as curiosities, but his countryman Don Cortes recognized their commercial value. He also sent the first recipes for the preparation of a new chocolate drink to Spain. Spaniards found the value of cocoa beans and kept a monopoly on its use and production for almost a century .They sweetened the chocolate drink accordingly to their preferences and soon after this drink gained high popularity. The cocoa beans were also introduced into Africa, Indonesia and Ceylon by the Dutchman. The popularity of the chocolate drink spread to the continent, especially to Italy, Holland and France in 1600s. That time the price of chocolate was extremely high so it was a product for wealthy people. In the beginning of the eighteenth century prices of cocoa became lower and the commercial manufacture started in Bristol, where in 1728 the firm of J.S. Fry established the first chocolate factory in England. Chocolate was produced here for drinking purposes. As the original chocolate, prepared from the roasted whole beans or nibs and sugar, was an extremely rich drink (because of high fat content) some manufacturers reduced it by the addition of farinaceous (starchy) substances. However, in 1828 Van Houten of Holland introduced the press machine that expressed some of cocoa butter (Minified, 1980). This way the quality of chocolate improved. It will be probably surprising for many of the readers that the eating chocolate was invented only 120 years ago. In 1876 Daniel Peters of Vavey in Geneva developed first milk solid chocolate, the product consumed until today in the highest quantities comparing to dark or 31

bitter chocolate. Two years later in 1879Rodolphe Lindt, as a first, implemented the conching machine into the chocolate Mass production (Hundert Jahre Schokoladenconche, 1979). Later on, the invention of milk crumb process introduced the popular caramelized milk flavor so much desired by many of us. Initially, only plain (dark) chocolate was used to coat nuts and other fruits but British firms, particularly Cadbury, pioneered in first boxes of milk chocolates and the chocolate bars for a wider market. About 1910 the first popular filled (composition) bar chocolate was created in the USA (Nuttall, 1994). It is well known that history of chocolate is a part of history of church. In the medieval convents the true chocolate orgies took place as the Pope recognized chocolate drink as the fast meal. After 1502 monks started the culinary experiments with brown beans but these are nuns who are responsible for development ofcacao drink made from the original bitter beverage with addition of honey, corn flour and vanilla. In 1569 the Pope Pius V was forced to take the official standpoint on the usage of chocolate drink. The enemies of chocolate demanded the prohibition of adevil drink that caused excitement reactions. In the twentieth century, scientific research revealed that the caffeine, Theo bromine and high content of Magnesium lead to aphrodisiac properties of the drink. Pope Pius V did not know these data but he also did not liked sweets. Therefore, after drinking a cup of chocolate he made a wry face and called a drink as swinish stuff. As a result chocolate drink was ordered for a strong penance. In seventeenth century the Pope prohibited chocolate drink again. The sweet business was soon noticed by Protestants from Switzerland such as Cailler, Suchard and Nestl who very soon made a chocolate as a symbol of their country.

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LIMITATIONS OF THE STUDY

Although all efforts were taken to make the result of survey as accurate as possible the survey had the following constraints: Retailers are not willing to give answers of the questions due to their busy schedules. Retailers hide the facts especially in the sales figure. A few retailers were not cooperating during the project survey. It was quite difficult to collect necessary data. Due to the time constraint and other imperative workload during the training period it could not be made possible to explore more areas of concern pertaining to project study. The employee of Cadbury India limited was very hesitant and reluctant to give all information which was vital for my project work because some information were confidential in nature.

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RESEARCH METHODOLOGY
RESEARCH Research is search for knowledge Or Research is systematic efforts to gain knowledge.

RESEARCH DESIGN
A Research design is the framework or plan for a study which is used as a guide in collecting and analyzing the data collected.

SELECTION OF SAMPLE: Keeping in view, the objectives and resource limitations of the study, 100 respondents were considered.( children , youth and old aged people)

SAMPLING PLAN
1. Sampling Unit: it defines the target population that will be sampled i.e. it answers who is to be surveyed .in this study , the sampling unit is universal within the age group of 12-55 years .

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2. Sampling Size: it indicates the numbers of people to be surveyed .though large samples give more reliable results than small samples but due to constraints of time and money , the sample size was restricted to 100 for respondents and 30 for dealers and retailers.

3. Sampling procedure: this refers to the procedure by which the respondent should be chosen .in order to obtain a representative sample. A probability sample of the population was drawn probability sampling can be of following types Simple random sample

TYPE OF RESEARCH DESIGN: Different types of research design have emerged on account of the different perspectives from which a research study can be viewed. There are three fundamental categories that we used frequently are given below. Descriptive research design Exploratory research design Experimental research design

In this project I have used descriptive research design because it describes new ideas and events. It is flexible and easily modify in nature. DATA COLLECTION:To achieve the objectives, the primary as well as secondary source of data are used..
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Primary source includes the retailers and companys officials through questionnaires. Secondary source of data includes the past records of company.

The data were collected through the following methodical techniques in the present project work. 1. Through questionnaires 2. Through interview 3. Through observation

TYPES OF DATA COLLECTION There are two types of data used. They are primary and secondary data. Primary data is defined as data that is collected from original sources for a specific purpose. Secondary data is data collected from indirect sources. PRIMARY SOURCES These include the survey or questionnaire method, telephonic interview as well as the personal interview methods of data collection. In this project I have used questionnaire and telephonic interview as primary source. SECONDARY SOURCES These include books, the internet, company brochures, product brochures, the company website, competitors websites etc, newspaper articles etc.
36

In this project I have used internet, company brochures, product brochures, and the company website as a secondary source.

FORMATION OF QUESTIONNAIRE
Formation of a good questionnaire involves intensive thinking and deliberation of the problem with predetermined objectives and aims properly placed in the questionnaire.

ANALYSIS OF DATA
Data, after collection, has to be analyzed will the outline laid for the purpose at the time of developing the research plan. The term analysis refers to the computation of certain measures along with searching for patterns of relationship that exists among data groups.

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Hypothesis Testing (By applying Chi-Square)

Chi-square test is used when the set of observed frequencies obtained after experimentation have to be supported by hypothesis or theory. The test is known as X2- test of goodness of fit and is used to test if the deviation between observation (experiment) and theory may be attributed to chance (fluctuations of sampling). Here we have the assumption of H0 and H1. If the values come in accordance to the depicted values then the hypothesis is accepted else its rejected. (O-E) 2 x2 = E O E = = observed frequency Expected frequency where,

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OBJECTIVE OF THE STUDY

The primary objective is To conduct an analysis of consumer preference towards chocolate in reference to Cadbury..

The other objectives are To study the consumer preference for different chocolate products. To find the extent of brand loyalty that exists among different chocolates To compare Cadbury chocolate with its competitors in terms of sales figure. To make an analysis of the shortcomings of Cadbury chocolate compared to its competitors. To conclude the findings and suggest the necessary corrective measures and recommendations Improving the market position of Cadbury chocolate.

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ANALYSIS AND INTERPRETATION

IT INCLUDES: GRAPHICAL ANALYSIS STATISTICAL ANALYSIS

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GRAPHICAL ANALYSIS AND INTERPRETATION Table no.5.1

1. MOST POPULAR KIND OF CHOCOLATE
SR. NO. 1 2 3 4 PRODUCT Candy Bar Toffee OTHERS RESPONDENTS 8 66 17 9 Fig no.5.1
MOST POPULAR KIND OF CHOCOLATE
9% 8%

PERCENTAGE 8 66 17 9

17%

Canndy Bar Toffey All

66%

INTERPRETATION:-

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Bar is most popular in consumer with 66; Toffee is the second popular chocolate in consumer with 17% following to the bar, 8% People like candy following to the toffee, 9% people like all kind of chocolates
Table no.5.2

2. CUSTOMER PERCEPTION WHILE PURCHASING

SR. NO. 1 2 3 PRODUCT FLAVOUR GIFT BOTH RESPONDENTS 66 4 30 PERCENTAGE 66 4 30

Fig no.5.2
CUSTOMER PERCEPTION WHILE PURCHASING

30%

Flavour

4%

Gift

66%

Both

INTERPRETATION:While Purchasing Chocolate 66% Customer Prefer Flavors, Only 4% Customer Prefer Gift as a Chocolate, 30% Customer Prefer Both Flavor and Gift While Purchasing Chocolate.

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Table no.5.3 3. TIME FOR CHOCOLATE

SR. NO. 1 2 3 TIME AFTER MEAL PARTY/BIRTHDAY ANYTIME RESPONDENTS 4 8 88 PERCENTAGE 4 8 88

Fig no.5.3 TIME FOR CHOCOLATE 4% 8%

After meal Party/Birthday Any Time 88%

INTERPRETATION:88% Customer Prefer Chocolate At Anytime, Only 8 % Customer like Chocolate During Party or Birth day ,Only 4% Customer Like Chocolate After Meal.

Table no.5.4 4. FLAVOUR PREFERENCE

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SR. NO. 1 2 3 4 5 6 7 8

PRODUCT MILKY COFFY FRUIT-N-NUT MILKY+COFFY MILKY+FRUIT-NNUT COFFE +FRUIT-NNUT ALL OTHER

RESPONDENTS 22 26 22 2 12 8 2 22 Fig no.5.4

PERCENTAGE 22 26 22 2 12 8 2 22

FLAVOUR PREFERANCE
2% 6% 8% 12% 2% 26% 22% 22% Milky Coffee Fruit-n-Nut Milky+Coffe Milky+Fruit-n-Nut Coffee+Fruit-n-Nut All Other

INTERPRETATION:According to Survey 22% Customer Prefer Milky Flavor, 26% Prefer Coffee, 22% Prefer Fruit-n-Nut,2% Prefer Milky and Coffee, 12% Prefer Milky and Fruit-n-Nut,8% Prefer Coffee and fruit-n-Nut, 2% prefer All Flavors and only 6% Prefer Other Flavors

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Table no.5.5 5. FIRST PREFERENCE OF CHOCOLATE

SR. NO. 1 2 3 4 BRAND AMUL CADBURY NESTLE OTHERS RESPONDENTS 8 66 17 9 Fig no.5.5 PERCENTAGE 8 66 17 9

FIRST PREFERANCE OF CHOCOLATE

13%

6%

15% Amul Cadbury Nestle Other 66%

INTERPRETATION:66% customer prefer Cadbury as a first preference, 15% customer prefer Amul as a first preference, 13% customer prefer Nestle as a first preference, 6% customer prefer Other as a first preference

Table no.5.6
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6. SECOND PREFERENCE OF CHOCOLATE

SR. NO. 1 2 3 4 BRAND AMUL CADBURY NESTLE OTHERS RESPONDENTS 14 38 28 20 Fig no.5.6 PERCENTAGE 14 38 28 20

SECOND PREFERANCE OF CHOCOLATE

20%

14% Amul Cadbury Nestle Other

28%

38%

INTERPRETATION:38% customer prefer Cadbury as a second preference, 28% customer prefer Nestle as a second preference, 20% customer prefer Amul as a second preference, 14% customer prefer other as a second preference

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Table no.5.7

7.
SR. NO. 1 2 3

WEEKLY PURCHASE
RESPONDENTS 70 20 10 Fig no.5.7 PERCENTAGE 70 20 10

RANGE BELOW RS-50 RS 50-100 ABOVE RS-100

WEEKLY PURCHASE(IN RS/-)

10% 20% Below Rs/- 50 Rs/- 50 -100 Above Rs/- 100 70%

INTERPRETATION:70% customer spend below Rs/- 50 on chocolate, 20% customer spend Rs/- 50-100 on chocolate, 10% customer spend above Rs/- 50 on chocolate

Table no.5.8
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8. AWARENESS OF AMUL CHOCOLATE IN CUSTOMER

SR. NO. 1 2 3 4 5 CADBURY CHOCOLATE DIARY MILK CHOCOLATE PERK 5 STAR TEMPTATION ECLAIRS Fig no.5.8 RESPONDENTS 58 23 4 5 10 PERCENTAGE 58 23 4 5 10

AWARENESS OF AMUL CHOCOLATE IN CUSTOMER

10% 5% 4%
Amul Milk Chocolate

23%

58%

Almond Bar Bindaaz Fundoo Chocozoo

INTERPRETATION:58% customer are well aware about the Cadbury milk chocolate, 23% customer are well aware about the Almond Bar, 10% customer are well aware about the Chocozoo, 5% customer are well aware about the Fundoo, 4% customer are well aware about the Bindaz

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Table no. 5.9

9. PROCUREMENT OF CADBURY CHOCOLATE (NORTH DELHI)

SR. NO. 1 2 3 TYPE OF CHANNEL DISTRIBUTOR WHOLESALER BOTH RESPONDENTS 70 13 17 PERCENTAGE 70 13 17

Fig no. 5.9 Procurment of Amul Chocolate (North Delhi)

17% 13% Distributor WholeSaler Both 70%

INTERPRETATION:Retailer Procure 70% Cadbury Chocolate from Distributor in North Delhi., Retailer Procure 13% Cadbury Chocolate from Wholesaler in North Delhi., Retailer Procure 17% Cadbury Chocolate from Distributor and Wholesaler in North Delhi.

Table no. 5.10 49

10. PROCUREMENT OF CADBURY CHOCOLATE (SOUTH DELHI)

SR. NO. 1 2 3 TYPE OF CHANNEL DISTRIBUTOR WHOLESALER BOTH RESPONDENTS 72 9 19 PERCENTAGE 72 9 19

Fig no.5.10 Procurment of Amul Chocolate(South Delhi)

19% 9% Distributor WholeSaler Both 72%

INTERPRETATION:Retailer Procure 72% Cadbury Chocolate from Distributor in South Delhi. Retailer Procure 9% Cadbury Chocolate from Wholesaler in South Delhi. Retailer Procure 19% Cadbury Chocolate from Distributor and Wholesaler in South Delhi. Table no.5.11 11. PROCUREMENT OF CADBURY CHOCOLATE (WEST DELHI)
SR. NO. TYPE OF CHANNEL RESPONDENTS 50 PERCENTAGE

1 2 3

DISTRIBUTOR WHOLESALER BOTH Fig no.5.11

31 52 17

31 52 17

Procurment of Amul Chocolate(West Delhi)

17%

31% Distributor WholeSaler Both

52%

INTERPRETATION:Retailer Procure 31% Cadbury Chocolate from Distributor in West Delhi. Retailer Procure 52% Cadbury Chocolate from Wholesaler in West Delhi. Retailer Procure 17% Cadbury Chocolate from Distributor and Wholesaler in West Delhi.

Table no.5.12 12. PROCUREMENT OF CADBURY CHOCOLATE (CENTRAL DELHI)

SR. NO. 1 2 3 TYPE OF CHANNEL DISTRIBUTOR WHOLESALER BOTH RESPONDENTS 27 26 47 PERCENTAGE 27 26 47

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Fig no. 5.12

Procurment of Amul Chocolate(Central Delhi)

27% 47% Distributor WholeSaler Both 26%

INTERPRETATION:Retailer Procure 27% Amul Chocolate from Distributor in Central Delhi. Retailer Procure 26% Amul Chocolate from Wholesaler in Central Delhi. Retailer Procure 47% Amul Chocolate from Distributor and Wholesaler in Central Delhi.

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Table no. 5.13 13. WEEKLY SALE OF CHOCOLATE(NORTH DELHI)

SR. NO. 1 2 3 BRAND CADBURY NESTLE AMUL RESPONDENTS 71 17 12 PERCENTAGE 71 17 12

Fig no. 5.13

Weekly Sale of Chocolate(North Delhi)

12% 17% Cadbury Nestle Amul 71%

INTERPRETATION:Weekly Sale of Cadbury in North Delhi is about 71%, Weekly Sale of Nestle in North Delhi is about 17%, Weekly Sale of Cadbury in North Delhi is about 12%

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Table no.5.14

14. WEEKLY SALE OF CHOCOLATE(SOUTH DELHI)

SR. NO. 1 2 3 BRAND CADBURY NESTLE AMUL RESPONDENTS 52 28 20 Fig no.5.14 PERCENTAGE 52 28 20

Weekly Sale of Chocolate(South Delhi)

20% Cadbury Nestle Amul 52% 28%

INTERPRETATION:Weekly Sale of Cadbury in South Delhi is about 52%, Weekly Sale of Nestle in South Delhi is about 28%, Weekly Sale of Cadbury in South Delhi is about 20%

Table no.5.15

15. WEEKLY SALE OF CHOCOLATE (CENTRAL DELHI)

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SR. NO. 1 2 3

BRAND CADBURY NESTLE AMUL

RESPONDENTS 62 25 14

PERCENTAGE 62 25 14

Fig no.5.15
Weekly Sale of Chocolate(Central Delhi )

14% Cadbury Nestle 25% Amul 62%

INTERPRETATION:Weekly Sale of Cadbury in Central Delhi is about 62%, Weekly Sale of Nestle in Central Delhi is about 25%, Weekly Sale of Cadbury in Central Delhi is about 14%

Table no.5.16 16. WEEKLY SALE OF CHOCOLATE(WEST DELHI)

SR. NO. 1 2 BRAND CADBURY NESTLE 55 RESPONDENTS 66 24 PERCENTAGE 66 24

AMUL

10

10

Fig no.5.16

Weekly Saleof Chocolate(West Delhi)

10%

24% Cadbury Nestle Amul 66%

INTERPRETATION:Weekly Sale of Cadbury in West Delhi is about 66%, Weekly Sale of Nestle in West Delhi is about 24%, Weekly Sale of Cadbury in West Delhi is about 10%

STATISTICAL ANALYSIS

17. H0: NULL HYPOTHESIS; Cadbury is the least preferred

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Table no. 5.17 OBSERVATION TABLE

Most Cadbury Nestle Amul Total preferred 45 10 5 60 preferred 7 10 5 22 least preferred 8 5 5 18 total 60 25 25 100

EXPECTED TABLE
Most Cadbury Nestle Amul Total preferred 36 15 9 60 preferred 13.2 5.5 3.3 22 least preferred 10.8 4.5 2.7 18 total 60 25 15 100

45 7 8 10 10 5 5 5 5 TOTAL

F 36 13.2 10.8 15 5.5 4.5 9 3.3 2.7

O-F 9 -6.2 -2.9 -5 4.5 .5 -4 1.7 2.3

(O-E)2 81 38.44 7.84 25 20.25 0.25 16 2.89 5.29

((O-E)2/E 2.2 5.4 0.7 1.6 3.6 0.05 1.7 0.87 1.9 17.98

DEGREE OF FREEDOM = 4 57

TABLE VALUE = 9.48 CALCULATED VALUE= 17.98

SO H0 REJECTED

The calculated value is greater than table value so the null hypothesis is rejected.

SUGGESTIONS & RECOMMENDATIONS

Company should concentrate more on television for advertisement, as mostly people get attracted through television only. For promotional offers, company should go for free gifts rather than going for other ways.

Nestle company should concentrate on its packing as people are least satisfied with it while Cadbury should concentrate on the shape of a chocolate. People are unsatisfied with the price and quantity of chocolate so companies should concentrate in this regard also 58

 On the basis of research and analysis of the study conducted in Panipat market, for the CADBURY Chocolate. The company should try to build some feed back mechanism from the retailer to check the wholesalers intervention in the CADBURYS distribution area because the wholesaler try to hamper the goodwill as well as the other benefit of the company and their most important part of distribution channel.

The company should maintain separate distribution channel for the chocolate because it is seem mostly during study that one single distribution deals all product, as it is not a hidden fact that the product line and product depth is very wide. In the other hand other product most importantly CADBURY butter is hot item for distributor as well as for retailers. Therefore they dont pay proper attention on to it. The company should provide new schemes on the regular basis to the retailers as well as to the consumers to increase its market share. During the project this fact become clear that the customer are not well aware about the all product item of Cadbury chocolate so through the strong advertisement company should try to increase the awareness of the CADBURY chocolate. The retailers main problem is storage of CADBURY Chocolate as well as nestle both company provide refrigerator and display box for proper storage as well as the promotion of their product so CADBURY should do something on this line.

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60

CONCLUSION

FROM THE ANALYSIS, THE FOLLOWING CONCLUSION CAN BE ARRIVED AT:

The findings of the study of building competitive strength in Indian market through brand preference of chocolates states that among all the three top brands i.e. Cadbury, nestle and Cadbury. The brand at first place is Cadbury. Among all these Cadbury is having largest market share then nestle. Cadbury Chocolate enjoys the trust of the retailers as well as the consumer because of its quality and huge brand image. Currently the stock of Cadbury Chocolate supplied by the company is not of fresh date. As a result of this situation is making an adverse impact on the market of Cadbury Chocolate There a big storage problem with Cadbury Chocolate it has needed to keep in certain temperature. Some distributors do not give proper information to the retailers about the product and offers given by the company for the promotion of the Cadbury Chocolate. Which leads bad image of the company? There is some problem with the packaging of the product. As a result the Chocolate puffed before its expiry period. The supply of Cadbury Chocolate is not proper in some specific areas .Which gives wrong massage about company. The competitors of some of the competitors of are providing easy replacement facility to the retailers which are attracting them towards those companies. Some of the competitors of some of the competitors are providing wider margins to the retailers. Wider margin is making the retailers to push the sales of the competitors.

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