Buying Behavior of Consumers of Age Group 18-25 for Milk Chocolate Bars With Special Reference
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A
Research Project Report
ON“Buying Behavior of consumers of age group
18-25 for milk chocolate bars with special reference to:-
(A case study of Yamuna Nagar)
Submitted in the partial fulfillment for
the degree of Master of Business Administration
Session (2009-2011)
Under The Guidance Of: Submitted By :
Mrs. Anju Anand Balraj Saini
Department Of Management MBA 4rth Sem.
SIMT Roll No: 109007
Exam Roll No………..
1
Sarswati Institute of Management &Technology Kaithal
Kurukshetra University, Kurukshetra092543-291000172-5002920
Fax : 0172-4616994Mobile : 98767-38000
SARASWATI INSTITUTE OF MANAGEMENT & TECHNOLOGY
Teek, Distt. Kaithal-136027 (Haryana)Run by : Shiv Bhola Hi-Tech Education Society# 99, SECTOR 7, PANCHKULA (HARYANA)
Present Correspondence Address : Plot No. 994, Ind. Area, Phase-II, Chandigarh-160002, E-mail : sbht.educationsociety@yahoo.com
Ref. No. _______________ Dated _______________
To whomsoever it may concern
This is to certify that the Research Project of MBA entitled, “Buying Behavior of consumers
of age group 18-25 for milk chocolate bars with special reference to Cadbury, Nestle, &
Amul”, done by Mr. Balraj Saini, Roll No. 109007 is a benefited work carried out by him
under my guidance. The matter embodied in this project work has not been submitted in our
college earlier for award of any degree or diploma to the best of my knowledge and belief.
Mrs. Anju Anand Lecturer
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DECLARATION
I Balraj Saini Roll No. 109007, here by declare that this project report entitle “Buying
Behavior of consumers of age group 18-25 for milk chocolate bars with special reference
to Cadbury, Nestle & Amul ” has not been presented as a par of any other academic except to
get my MBA from Sarswati Institute of Management &Technology, Kaithal
(BALRAJ SAINI)
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ACKNOWLEDGEMENTS
In this present world of competition there is a race of existence in which those who are having
will to come forward will succeed. Project is a bridge between practical and theoretical
working, with this will I have joined the project. I really wish to express my gratitude towards
all those people who have helped me.
My project guide Mrs. ANJU ANAND (lecturer) who provided me her expert advise,
inspiration & moral support in spite of her busy schedule & assignments, has mainly provided
my understanding of this project. I am very grateful to her kindhearted approach &
encouragement, which helped me immensely in completion of this project report.
I take this opportunity to express my gratitude to Mr. K.K AGGARWAL (Director), for
his invaluable help & guidance throughout the course.
Last, but not the least, I say only this much that all are not to be mentioned but none is forgotten and I will like to extend my special thanks and gratitude to all my classmates who always encourage me in pursuit of excellence.
( BALRAJ SAINI )
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PREFACE
This project has been prepared, as a part of our MBA Program. This will also serve as basis
knowledge of “Buying Behavior of consumers of age group 18-25 for milk chocolate bars
with special reference to Cadbury, Nestle, Amul.” The Project Report is accompanied with
number of Formats, charts & flow diagram, which will be helpful in understanding the subject
matter. We are thankful to Mrs. ANJU ANAND ; Lastly we are grateful to all the seen and
unseen hands that have been kind enough to help me in preparing the above project report from
the beginning to end.
( BALRAJ SAINI )
5
Contents Particulars Page No.
Introduction to the study 01
Consumer Behavior 16
Research Methodology 22
A. Problem Statement 25 B. Research Design 26
Area of Study Objective of the Study
C. Sampling Design 27 Sampling Unit Sample Size Sampling Techniques Constraints of the study
D. Data Collection 28 Data Collection Methods Data Collection Techniques
E. Statistical & Analytical Tools 29
Analysis & Interpretation 32
Findings 42
Limitation 45
Suggestions 47
Conclusions 49
Bibliography 51
Questionnaire 53
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Introduction
This project is about preference of the consumers towards FMCG products i.e.
chocolates in domestic market (in special context of nestle, Cadbury & Amul
chocolates)
The story of chocolate began in the new world with the Mayans, and also the
word chocolate comes from the Mayan word xocoatl, and the word cocoa from
the azlec cacahuati, who drank a dark brew called cacahuaquchtl. Later, the
Aztec consumed chacahoua and used the cocoa bean for currency. In 1523, they
offered cocoa beans to Cortez, who introduced chocolate to the world, where it
swiftly became a favorite food among the rich and noble of Europe.
From the beginning, turning raw, bitter cocoa beans into what one 17 th century
writer called “the only true food of the gods” has been a fine art, a delicate
mixture of alchemy and science. Centuries ago it was discovered that fermenting
and roasting the beans could create an almost otherworldly flavor. In 1875, after
years of trying, a 31-year-old candy maker in vevey named Daniel peter figured
out how to combine milk and cocoa power.
The ancient Aztecs believed chocolateTo be the “FOOD OF THE GOD ”
Firstly, there is a need to know about the chocolate…that what is chocolate. Why chocolate is the most popular dessert flavoring around.
MEANING OF CHOCOLATE:-1. A preparation of the seed of cocoa, roasted, husked, and ground (without
removing any of the fat), often sweetened and flavored.
2. A beverage or confection made from this.
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3. Dark brown.
4. A divine substance inspiring passion in those who consume it.
Origin of chocolate
The word chocolate comes from the Mayan word xocoatl, and the word ‘cocoa’
from the Aztec cacahuatl. In Mexico, the beverage was called chocolath, from
lath (water) and choco. Supposedly the Spaniard found the Mexican word har to
pronounce and called it cacao. Chocolath, chocolath, chocolath. Puff puff. See? I
did it! (But let’s stick to cocoa) *LoI*
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 (about 550 kkal in
100gm of a product), capable to be stored by years without change of properties.
It contains 50-55% of carbohydrates, 32-35% of fat, 5-6% of fibers. And also
tannin substances (4-5%), stimulators-the bromine and caffeine (1-1.5%),
microelements Na, K, Mg, P, Fe and vitamins B1, & B2.
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HISTORY OF CHOCOLATE
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 ingredient in their favorite chocolate drink ‘xocotlatl’.
Legend suggests that the first beans came out of paradise and lent wisdom and
power to the person that ate them. For 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 wasn’t exactly impressed.
During one of his conquest 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 ides
of cocoa consumption from the Mayas.
However the conquistadors pizzaro and, in particular, Cortes did show interest in
the bean. Fernando Cortes reached the east coast of Mexico in 1519. as an
honored guest of Montezuma (Aztec emperor and inveterate chocolate fanatic) he
was offered xocotlatl –a small portion of aromatic chocolate drink mixed eith
vanilla, pepper and other herbs.
For the Mayas, cocoa beans were very important, not only were they a poplar
means of exchange, they also had a religious value. The Mayas sacrificed cocoa
beans at the funerals of the upper class.
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PREFACE
The customer is king. Finally ten years after the liberalization of India’s
economy began. The market place has, suddenly become tightening competitive.
Not only have new players stormed into the country, there are more brands
available then ever before in every segment of every market. The customer today
buys only that which meets his/her every desire. This demands more intimate
understanding of the customer by the “Smart Companies” the study has been
divided into six parts.
First part contains briefly the CHOCOLATES, history of chocolates, along with
the development of passion for chocolates.
Second part presents an overview of evolution of chocolates, chocolate industry-
growth and competition in various categories. Major players in this industry.
Third and Forth part includes a brief profile about the consumer behavior &
Research Methodology for the study. This part describes the term consumer
behavior and it’s importance.
Part five deals with the Analysis & Discussion. Important findings have been
discussed at last for better understanding.
Lastly, Part six namely “Findings & Recommendation” highlights the major
findings during the course of the study. Accordingly, recommendations have
been made.
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INTRODUCTION
EVOLUTION OF CHOCOLATE
1753-1849
1753 Swedish biologist Carolus Linnaeus revealed his feeling for
chocolate while attending to the task of classifying organisms in a
binomial system. To the chocolate
tree he gave the botanical name of theobroma cacao. Cacao refers
back to the original native language. Theobroma is a Latin term that
translates to “food of the gods”.
1765 In 1765 the Englishman James Watt invented the steam engine and in
doing so set in motion what we now refer to as the industrial
revolution. Around the same time in the colony of Massachusetts
one of the first machine oriented chocolate manufacturing
businesses was being established. The partnership of John Hannon,
an Irishman, and Dr. James Banker of the Massachusetts colony
formed the company Hannon’s Best chocolate. Through the use of
an old grist mill, cacao beans were ground into chocolate liquor,
pressed into cakes of paste for eventual use as a chocolate beverage.
During a routine trading mission to the West Indies, Hannon was
presumed dead when his ship failed to returned. The name of the
company subsequently changed to the Baker company. It was not
until 1927 that the Baker family sold their business to General
Foods.
1774 The mysterious rumors that surrounded the death of pope clement
XIV, give credence to the notion that chocolate had become a
favorable way of distinguish poison. The pope died after consuming
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a chocolate beverage, which also killed the unwritten confectioner
who shared in the consumption. Through there is no proof, the
Jesuits are suspected to have arranged his demise. The pope had
been in opposition to the Jesuits, and they were known chocolate
drinkers. So the conclusion, while not provable, is not unfounded.
1819 Francois Louis Cailler opened a chocolate factory on lake Geneva
near Vevey. He used machinery he had developed himself, making
him a pioneer in the evolution of Swiss chocolate.
1828 Chocolate maker and chemist Coenraad Van Houten developed the
process now known as “Dutching.” His patented invention involved
the removal of close to half of the cocoa butter from chocolate liquor
through the use of hydraulic pressure. The removal of the cocoa
butter resulted in a commensurate decrease in fat content. Instead of
fifty percent, the hard cake that was let from this process had a fat
content of only Twenty-Five percent. The cake could then be
crushed into a powder. The use of alkaline salt allowed for easier
mixing with warm water. It also made the color darker and had the
pleasing affect of a less bitter taste. This invention would be the key
in the development of chocolate as a confection.
1847 Joseph Fry was a Quaker who began manufacturing chocolate under
the name of Joseph Fry & Sons. While the original Joseph Fry left
the company to become a type founder, his sons continued the
business. One of his sons, another Joseph Fry, purchased a Watts
steam engine in 1789 to more efficiently grind cacao. A great-
grandson of the original Joseph Fry led the business toward the
development of edible chocolate. Hoe found that by remixing some
of the cocoa butter back into the processed “Dutched” cocoa powder
and adding sugar, a paste was formed that could be pressed into 13
molds. The effect of this was a chocolate bar that gathered as much
attention as chocolate beverages had.
1849 Ghirardelli, an Italian native, planned early on having a chocolate
business. However, he traveled first to Uruguay and then to Peru
before setting in California in 1849. Though he had been attracted
by the Gold Rush, he soon learned that there was more reliable profit
to be had selling tents to other gold miners than in actual mining. He
used the money he saved and started the Ghirardelli chocolate
factory, which is still located in San Francisco.
1849-1986
1850’s Prime Minister William Gladstone, in an effort to boost the
economy, lowered the taxes on cacao beans, allowing British
manufacturers to expand their market.
1860 British FDA is founded. A British journal called the Lancet
discovered that many chocolate manufacturers were employing
various methods of “Cutting” chocolate with something less
expensive. One report revealed that cocoa powder was being thinned
with brick powder. Stirred to respond, the British government passed
its first food and drug act in 1860.
1868 John Cadbury was another Qyaker who became interested in
chocolate production. In 1824 he had opened a Grocery store in
Birmingham, England. Cadbury featured cacao beans that he would
roast and grind himself. In time he realized the interest and
profitability in changing his focus to manufacturing of chocolate.
Cadbury became so renown that he received a Royal Warrant in
1854 to be the single cocoa and chocolate provider for Queen
Victoria. Richard and George Cadbury took over their father’s 14
business and in 1866 purchase a Van Houton machine. They began
to market Cadbury cocoa powder. By 1868, the Cadbury company
produced the first box of chocolate candies. Their business continue
to flourish, and in 1879 they took over the Birmingham suburb of
Bourneville. The factory they built there supported a town,
providing both worker housing and recreational facilities.
1879 During the same period that Cadbury was developing into a
formidable chocolate force, a Swiss chocolate manufacturer was
struggling to find a way to combine chocolate with milk. Daniel
Peter could not produce something with a smooth consistency
because the milk could be made more shelf-stable for use a baby
formula. The product of Nestle’s experimentation was a sweetened
condensed milk. The new milk, which had lesser water, was mixable
with chocolate and made a product that would not spoil easily. Henri
Nestle and Daniel Peter formed a company in 1879. Today, the
largest food company in the world is Nestle.
1879 A conching machine was created in 1879 that allowed for the
smoothest chocolate yet. Rudolf Lindt used a concave granite bed
where chocolate liquor, sugar, and milk if desired, would be ground
back and forth by heavy rollers. Lindt named his chocolate Fondants
because their texture was as smooth as the popular creamy candies.
The process of conching soon became a part of common chocolate
manufacturing. In addition, the friction of the rollers produced a heat
that made roasting an unnecessary steps. Today, the rollers in
conching machines are kept at a controlled temperature for an even
higher quality.
1893 Milton Suavely Hershey was a Mennonite from Pennsylvania who
owned a caramel manufacturing plant. When he visited the world 15
Colombian Exposition in Chicago his interest was initially to
purchase and use machines to make chocolate covered candies. His
interest changed course after visiting Europe and researching the
many chocolate manufacturers there. Hershey then decided to focus
his business on chocolate production and in 1900 he introduced to
the world the milk chocolate Hershey bar. It was followed five years
later by the Hershey kiss. With business expanding beyond
expectation, Milton Hershey took over the town of Derry Church,
Pennsylvania and renamed it Hershey. Thought he also developed a
Hershey, Cuba around a sugar mill he owned, Milton Hershey was
focused out of Cuba in1959 when Castro gained control. Today
Hershey, Pennsylvania is an impressive tourist attraction.
1908 The triangular Toblerone chocolate bar was created and launched
into market by Swiss chocolate maker Jean Tobler.
1913 Swiss chocolate maker Jules Sechaud invented the chocolate filled
bonbon.
1929 At the end of the twentieth century Cella’s Confections, on West
Broadway and canal, was a part of many factories that made up New
York City’s confectionary district. In 1929 their candy factory began
manufacturing chocolate-covered cherries. Today, while the other
confectioneries have disappeared, Cella’s remains.
1936 Philip Silverstein owned a candy company on Delancey Street in
New York City. In 1936 he created a thick, nut and raisin filled
chocolate bar, known as the Chunky Bar.
1940’s As the United States geared up for a war in Europe, Militon Hershey
suggested an addition be made to the standard soldier’s “D-Ration.”
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The American military began to include three 4 ounce, 600 calorie
chocolate
bars in each “D-Ration.” While from today’s perspective this may
seem odd, the Aztecs had used chocolate for the edification of their
own warriors. In addition to lifting the energy and spirits of the
troops during World War II, the chocolate bars became associated
with peace, as malnourished holocaust survivors were rescued by
American troops offering chocolate.
1986 When Jim Walsh left his life as an adventures executive in Chicago,
he decided to move to Hawaii to start a chocolate business. He
purchased plantations on Kea’au and Kona, and decided to use the
fine criollo cacao beans for his foundation. The beans he harvested
are sent to California, after they have been fermented and dried, and
are processed into high quality chocolate. Only available through
mail order, the chocolate is used primarily by pastry chefs.
Major Players in the Market
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CADBURY (INDIA)
Trading at rs.850, the Cadbury (India) stock presents a good long-term
investment option.
After hitting a high of Rs. 981 in March 2000, the stock retraced to its present
level. The current price discounts the latest EPS 49 times. With good growth
protects ahead and a strong financial background, the stock may hold good
potential for steady returns over the long term.
Cadbury (India), subsidiary of Cadbury Schweppes Overseas, is one of the
leading player in the chocolate and sugar confectionary segment. The parent has
a 51 percent stake in the company. For the year-ended December 1999, close to
76 percent of the sales turnover was derived from chocolate followed by malted
foods (22 percent).
Cadbury (India) has for long been the leading player in the chocolate industry. It
is virtually a household name with leading brands such as Five Star and Dairy
Milk. Of late, the company has been flooding the market with new launches.
Among the successes of recent years are Perk and Picnic.
In the malted food segmented, Bournvita is one among the popular brands.
However, the health- drink segment has failed to lead support to the company’s
bottom-line in the recent past. Volumes in Bournvita have been deciding for
some time. However, this is not likely to be a drag on the profitability.
Cadbury (India) has levered on its marketing strengths and product range.
Competition may stem from players such as nestle in the near term. Apart from
this, other new players such as Mars and Hershey’s may have an impact on the
level of competition. However, the reduction in the excise duty on malted drinks
and chocolates and the lower import duties on cocoa is likely to have a positive
impact on the cost-structure of the firm.
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The earnings performance of 2000 first quarter was impressive. Sales revenue
rose 20 per cent to Rs. 139.34 crores compared to the corresponding previous
period. Operating margins declined marginally from 16.4 per cent to 15.7 per
cent. Post-tax earnings rose a 11.5 per cent to Rs. 10.34 crores. If the top line
growth is sustained at this level, it could provide a boost and growth over the
long term. Shareholders can stay invested.
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NESTLE
The story of chocolate began in the new World with the Mayans, who drank a
dark brew called cacahuaquchtl. Later, the Aztecs consumed chacahoua and used
the cocoa bean for currency. In 1523, they offered cocoa beans to Cortez, who
introduced chocolate to the world, where it swiftly became a favorite food among
the rich and noble of Europe.
From the beginning, tuning raw, bitter cocoa beans into what one 17 th century
writer called “the only true food of the gods” has been a fine art, a delicate
mixture of alchemy and science. Centuries ago it was discovered that by
fermenting and roasting the beans, an almost otherworldly flavor could be
created. In 1875, after tears of trying, a 31-year-old candy maker in Vevey named
Daniel Peter figured out how to combine milk and cocoa powder. The result-milk
chocolate. Peter, a friend and neighbor of Henri Nestle, started a company that
would quickly become the world’s leading maker of chocolate. For three decades
the company called Peter, Cailler, Kohler relied on Nestle for milk and marketing
expertise. In 1929, the almost inevitable merge took place as Nestle acquired
Peter, Cailler, and Kohler.
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AMUL
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 Specifications: Meets
all requirements under the PFA for boiled sugar confectionary. “A gift foe
someone you love”. Amul Chocolate has chosen the phrase “A gift of someone
for love” to market their chocolate products.
Today, GCMMF’s Amul brand of milk products receives business queries from
dozens of countries, ranging fron the U.S. and the Netherlands to Singapore and
New Zealand-thanks to an innovative marketing campaign on the World Wide
Web.
The round-eyed, Chubby-Cheeked Amul Moppet has been a wildly popular
advertising fixture, with its punchy one-liners amusing Indian viewers from bus
stands, lamp kisos and billboards for over thirty years. The ultimate compliment
to the butter came when a British company recently launched a butter and called
it Utterlt Butterly, a fitting recognition of the “Thorough bred, utterly Butterly
Delicious Amul.” Every week, Amul’s topical ads for its butter products are
posted on its Web site, along with recipes fore Indian dishes featuring Amul
products. Archives of hundreds of topicals dating back to 1979 are available on
the site. The topicals have also been carried every day on the Indian World home
page.
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INTRODUCTION
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, when they buy it, where they buy it, how often 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 and
satisfying the needs of the consumers.
Decision Making Process
The consumer’s decision to purchase or reject a product is a moments 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 consumer’s decision-making
process. We would be discussing a simple model of consumer decision making
that emotional consumer. The modal, has three major components:
1) Inputs
2) Process
3) Output
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Product Price Place Promotion
Firm’s Marketing Efforts
Psychological Factors
Perception Motivation Attitude Learning Personality
Family Reference Group Other non-commercial
influence Social class Culture and sub-
culture influences
Socio culture Environment
Purchase Trial Repurchase
Post purchase evaluation
Need recognition Information search Valuation
alternatives
Input
Process
Output
CONSUMER DECISION MAKING PROCESSExternal influences
Consumer Decision Making
Post Purchase Behavior
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Experience
INPUTS
The input component draws on external influences that serve as sources of
information about a particular product and influence a consumer’s product-
related values and behavior. Chief among these input factors are the marketing –
mix activities of organizations that attempt to communicate the benefits of their
products and services to their potential customer, and the no marketing socio-
cultural influences, which, when internalized, affects the consumer’s purchase
decision.
PROCESS
The process component of the modal is concerned with how consumers
make decisions. The psychological field represents. The internal influences
(motivation, perception, learning, personality, and attitudes) that effect the
consumer’s decision making processes.
Prepurchase Activity
After the problem is identified, the buyer indulges in prepurchase activity. It is
under stood that need is a father of 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 is energized and is likely
to be influenced by various factors. Need arousal drives the consumer to collect
information about the required product. He first indulges in internal search, scans
his psychological field so as to recollect of retrieve any information or past
experience related to particular need. His psychological field comprises of his
past learning. Perception, personality and past experience. If he is not satisfied he
then goes in for external search and looks for various sources of information. The
degree of perceived risk can also influence this stage of the decision process. In
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high – risk situation they are likely to engage in complex information search and
evaluation tactics.
Of key interest to marketer are the various sources of information that the
consumer will return to and the relative influence that they will have on his
buying behavior.
Evaluation of Alternatives
when evaluating potential alternatives consumers tend to use two types of
information:
1. A “list” of brands from which they plan to make their selection (the evoked
set), and
2. The criteria they will use to evaluate each brand.
The criteria consumers use to evaluate the brands that constitute their
evoked sets usually are expressed in terms of important product attributes.
Consumers use certain procedures or rules to facilitate a choice among
multi – attribute objects. Consumers decision rules have been broadly
classified into two major categories compensatory and non compensatory
decision rules.
An understanding of which decision rules consumer apply in
selecting a particular service or product is useful to marketers concerned
with formulating a promotional programme.
Output
The output portion of consumer decision – marking model concerns two
closely associated kinds of post decision activity. Purchase behavior and post
purchase evaluation. The objective of both activities is to increase the consumer’s
satisfaction with his/her purchase.
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Purchase Behavior
Consumer make two types of purchase and repeat purchase. If a consumer
purchase a product (or brand) for the first time, and buys a smaller quantity than
usual, this purchase would be considered a trail. Thus, a trail is the exploratory
phase of purchase behavior in which consumers attempt to evaluate a product
through direct use.
If the new brand is established product category (cola, chewing gum,
candies) is found by trail 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 because it
contributes to greater stability in the marketplace.
27
RESEARCH METHODOLOGY
28
Research methodology in a way is a written game plan for conducting research.
Research methodology has many dimensions. It includes not only the research
methods but also considers the logic behind the methods used in the context of
the study and complains why only a particular method of technique has been
used. It also helps to understand the assumption underlying various techniques
and the criteria by which they can decide
that certain technique will be applicable to certain problems and other will not.
Therefore in order to solve a research problem, it is necessary to design a
research methodology for the problem as the some may differ from problem to
problem.
This chapter focuses on the various techniques, methods and assumptions
used in this study. It sheds light on the research problem, objectives of the study,
and also its limitations. The later part of the chapter explains the manner, in
which the data is collected, classified, tabulated, analyzed and interrupted so as to
each to conclusive results.
The study is of diagnostic nature and thus the overall research design is
going to be rigid. The design should provide enough provision for protection
against bias-ness and must maximize reliability.
HYPOTHESIS
29
Ho= Various factors (image of product, paying capacity, price of product, packaging of
product brand awareness, influence of advertisement) effect the consumer buying behavior
for milk chocolates bar.
H1= NO effect of various factors (image of product, paying capacity, price of
product, packaging of product, brand awareness, influence of advertisement) on
consumer purchase in milk chocolate bars.
A) PROBLEM STATEMENT
30
Research work is management parlance is extremely important for a given
close view of the relatives of the real life business issues . For any management
student who is striving to perform outstandingly. It is of paramount importance
that apart from theoretical knowledge he must also gain some practical
knowledge. Survey report deals specially with providing an opportunity to
management students to have some exposure in real business world. My study
topic deals with Consumer Behavior and different factors that influence
consumer to purchase a particular brand of chocolates.
As chocolate is regarded as one of the biggest Fast Moving Consumer
Good (FMCG), there are many factors in mind of consumer which induce them
to purchase a particular brand of chocolate. Some of these factors are Price,
Taste, Packaging, Brand name. Ever changing behavior of consumer, dominance
of different brands in the market compelled me to undertake a research work in
this segment. The prime objective of my study is to analyze the effect of various
factors on buying behavior of consumers.
B) RESEARCH DESIGN
To analysis the buying behaviors of the residents of Yamuna Nagar Sample
Survey Methods has been employed through other methods are also important.
This method is given prime significance in modern research because of its
extensive use to study the relationship of different factors, attitudes and practices
of society and to explore the problems that cannot be treated by experimental
methods.
To collect data, a number of techniques are employed under the sample
survey method i.e. questionnaire. The increasing use of questionnaire is probably
due to increased emphasis by social scientists on quantitative measurement to
uniformly accumulated data.
A) Area of study31
The area of the study is different Markets of Yamuna Nagar in order to collect
the Primary data from the respondents.
B) Objective1. To study the brand preferences of consumers from the three brands of
chocolates i.e. Amul, Cadbury, Nestle available in the market.
2. To find the extent of brand loyalty of consumers that exists among
different chocolate brands.
3. To study the influence of various aspects on buying behavior. These
factors are:-
Price
Taste
Brand name
Packaging
4. To study the usage & brand awareness of chocolates product in among the
residents of Yamuna Nagar.
5. To study the consumer preference for different chocolate products.
Study area : Yamuna Nagar.
Target Segment : Consumers of Milk chocolates bars of age group 18-25
C) SELECTION OF SAMPLE32
It becomes impossible to contact each and every individual of the population due
to limitations of essential resources like time and money. Therefore, the study is
preferably allowed down to a representation sample to make the study more
manageable.
Keeping in the view the objectives and resource limitation of the study,
100 respondents were considered.
Respondents 100(Youths of age group 18-35)
The selected sample is representative of the population and is accurate and
practicable.
D) SAMPLING PLAN
The following factors will be taken into consideration within the scope of
sampling plan:
I 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 youth with in
the age group of 18-25 years.
II 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 respondents.
Probability sampling can be of following types
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Simple random sampling
Stratified random sampling
Cluster (area) sample
In this case, stratified random sampling was done since the respondents will
classified into well defined classes or strata that were distinct from each other.
E) COLLECTION OF DATA
After the research problem has been defined and the research design has
been chalked out, the task of data collection begins. The data can be collected
mainly through primary sources, but it was supplement with secondary data.
I Primary data collection
Primary data is the data which is collected through observation or direct
communication with the respondent in one form or another. These are several
methods for primary data collection like Observation Method, Interview Method,
through schedules, through questionnaires and so on.
II Secondary data collection methods
Secondary data is collected through
Magazines
Journals
Portals
F) STATISTICAL & ANALYTICAL TOOLS
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CHI – SQUARE TEST:- For measuring the affect of price on
purchase of milk chocolate bars of different brands.
V= (r-1)*(c-1)
Expected Frequency = Row Total * Column Total / Total frequency
If , Table Value > Calculated Value, Hypothesis is accepted.
GROUP CORRELATION:- For measuring the correlation between
various influencing factors like price, taste, packaging, brand name
etc. and buying behavior of consumers for milk chocolate bars the
Group Correlation is used and the formula is:
r = Nfdxdy - fdxfdy
Nfdx2-(fdx)2 Nfdy2-(fdy)2
T-TEST (Student’s Distribution):- for measuring the
consumption level of consumers of milk chocolate bars of
three brands.
S=√ ∑X2
n-1
If , Table Value > Calculated Value, Hypothesis is accepted.
LIKERT SCALE:- For the ranking of milk chocolate bars according to consumer preferences
Analytical tools:- Like Pie graphs etc.
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Formation of Questionnaire
Quite often the questionnaire is considered as the heart of a survey
operation. Hence it should be carefully constructed. It is an investment that is
widely used to collect various types of data and consists of long lists of questions
designed to collect any information. It has personally been found that people are
more frank in giving replies to a questionnaire than to an interview schedule.
Though being less expensive, it has certain limitations like incomplete entries and
erroneous responses. But the educational qualification of the respondents is an
additional factor which renders this technique the most relied upon.
Formation of a good questionnaire involves intensive thinking and
deliberation of the problem with predetermined objective and aims properly
placed in the questionnaires.
The questionnaire framed for the purpose of the study consists of a
limited number of questions placed in logical order. So, that the objective of the
question is clear to the respondents. All the questions are centered on the problem
keeping in the mind. The questions were both open and close ended as well as
multiple choices.
Analysis of Data
Data, after collection, has to be analyzed in accordance will the outline laid
for 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 exist among data groups.
CONSTRAINT OF THE STUDY
36
There are following constraints of the study which can be explained as:-
1) The time of research was short due to which many fact has been left
untouched.
2) The Area undertaken in research in Yamuna Nagar only. But to do a
completer research a wide area is required, so the area is also a
constraint of the study.
3) Sample for the study taken is of only 100 consumers. Which can also
act as a constraint in the study.
4) While collecting data some of the consumers are not willing to fill the
questionnaire, so they might not fill their true behavior. This can also be
a constraint of the study.
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ANALYSIS AND INTERPRETATION
Q1. Which companies’ chocolate do you purchase? Please rank them
according to your preference.
Brand Name Percentage
Cadbury 40
Nestle 35
Amul 25
40%
35%
25%Cadbury
Nestle
Amul
As per shown in the Pie chart, the maximum market share is hold by Cadbury.
And least share is hold by Amul followed by Nestle. And this result is obtained
from the response of customers towards Questionnaire filled by them for the
consumption of milk chocolate bars.
39
Q2. What is your pattern of consumption?
Pattern of consumption Percentage of consumption
More than one per day 15
Daily one 25
3-4 chocolates per week 45
Weekely 10
Rarely 5
As shown in Pie chart, most of the consumers consume milk chocolate bars as 3-
4 per week, which represent 45% of the total number of surveyed consumers.
And second most percentage of consumers consumes milk chocolate bars are of
daily one. As calculated by Tool Of T-Test for every brand of milk chocolate
bars, in which the hypothesis is taken that more than 60% of population
consumes milk chocolate bars more than one a week. And in these three brands
i.e. Cadbury, Nestle and Amul the result was positive
40
Percentage of consumption
15%
25%45%
10% 5%
More than oneper dayDaily one
3-4 chocolatesper weekWeekely
Rarely
Q3. Which factor you consider the most while purchasing the chocolate?
Consumer's consideration Percentage
Price 16
Taste 48
Brand 18
Packaging 9
Other 9
Percentage
16%
48%
18%
9% 9%
Price
Taste
Brand
Packaging
Other
Most of the consumer of milk chocolate bars says that the most considering
factor by them on the basis of which they purchase a particular brand of milk
chocolate bars is Taste of that milk chocolate bars. And the lest interested factor
is Packaging. As analyzed with the help of Correlation Tool in which the
correlation between different factors that influence consumer to purchase a
particular brand of milk chocolate bar is +.132, which shows that there is
positive correlation between different influencing factors and buying behavior of
consumers.
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Q4. What extent of price tag influences your purchase decision of chocolate?
Extent of influence Percentage
High 13
High average 23
Average 27
Low average 19
Low average 18
Percentage
13%
23%
27%
19%
18%
High
High average
Average
Low average
Low average
Shown by the Pie chart, price has an influencing effect on the purchasing
behavior of consumers for milk chocolate bars, as 23% and 27 % of consumers
lies in high average and average parameter. And to prove the same Chi-Square
Test has been used,to prove the same observed values are compared with the
expected once. And calculated chi-square is as:-
2 Calculated = 0.437
But the calculate value was lesser than table value. Hence null hypothesis is
selected that change in price has influencing effect on buying behavior of
consumer for milk chocolate bars.
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Q5. Which reference group influence you most to buy a particular chocolate?
Reference Groups Percentage
Friends 55
Family 3
Retailers 1
Celebrity 39
Others 2
As shown in the bar graph, from reference group friends are the most influencing
factor which influence consumer to purchase a particular brand of milk chocolate.
And this statement is supported by 55% of consumers of milk chocolate bars.
And the second most influencing factor which influence customer to purchase a
particular brand of milk chocolate bar are celebrities , and this statement is
supported by 39% of consumers.
Q6. You consider manufacturing and expiry date while buying any chocolate________
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Consumer's View Percentage
Strongly Agree 28
Agree 29
Neutral 37
Disagree 4
Strongly Agree 2
Consideration on manufacturing and Expiry date
28%
29%
37%
4%2%Strongly Agree
Agree
Neutral
Disagree
Strongly Agree
As shown in Pie chart, about 37% of consumers are neutral while considering the
manufacturing and expiry date of milk chocolate bars. But if talk about those who
strongly agree on the consideration of manufacturing and expiry date represented
by 28% of population and 29% of population represent those who are agree on
the statement that they consider manufacturing and expiry date while purchasing
any milk chocolate bar.
By applying Chi-Square……
OBSERVED
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Price Influence on Chocolate purchase
CHOCOLATE
BRANDS
High High
Avg.
Average Avg.
Low
Low
Cadbury 5 9 11 8 7
Nestle 5 8 9 7 6
Amul 3 6 7 4 5
Total 13 23 27 19 18
EXPECTED
Price Influence on Chocolate purchase
CTV
Brand
High High Avg. Average Avg. Low Low
Cadbury 5.2 9.2 10.8 7.6 7.2
Nestle 4.5 8.05 9.45 6.65 6.3
Amul 3.25 5.75 6.75 4.75 4.5
Total 13 23 27 19 18
Observed Value
Expected value(O-E)2 (O-E)2/E
5 5.2.01 .01
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5 4.5.25 .06
3 3.25.125 .04
9 9.2.04 .004
8 8.05.025 .003
6 5.75.125 .022
11 10.8.04 .004
9 9.45.2025 .02
7 6.75.125 .02
8 7.6.16 .02
7 6.65.1225 .02
4 4.75.5625 .12
7 7.2.04 .01
6 6.3.09 .014
5 4.5.25 .04
2 Calculated = 0.437
V = (r-1) (c-1) = (5-1) (3-1) = 8
for V = 8 2 0.05 table value = 15.58
So, 2 0.05 table value greater than 2 calculated value so hypothesis is
accepted and there is positive relation between change in price level and
purchasing decision.
Let us take the hypothesis that customer are satisfied with the present brands of
chocolate in Yamuna Nagar.
By applying Likert Scale……….
Cadbury Nestle Amul
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Fully satisfied 11x5 = 55 10x5 = 50 7x5 = 35
Satisfied 13x4 = 25 11x4 = 44 8x4 = 32
Neutral 8x3 = 24 6x3 = 18 5x3 = 15
Dissatisfied 5 x 2 = 10 5x2 = 10 3x2 = 6
Fully dissatisfied 3 x1 = 3 3x1= 3 2x1 = 2
144 125 90
So as per the scale obtained the ranking of various brands of chocolate is as under
:-
= Rank 1
= Rank 2
= Rank 3
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FINDINGS
The findings of the study of consumer are buying behavior in chocolates states
among all the three to brands i.e. Cadbury, Nestle and Amul. The brand at first
place is Cadbury, the Nestle (2nd) and last is Amul. Among all these three
Cadbury is having the largest market share i.e. 40, Nestle 35 and Amul 25.
Among all these Brands Cadbury is the only company offering largest number of
brands in chocolates i.e. 6 (only for milk chocolate bars). As compared to
Cadbury Nestle Company is having 2 brands and Amul is with 4 brands of
chocolates.
The buying behavior of consumer for different brands of milk chocolate
bars is effected by various factors like price, taste, packaging, brand etc. as
shown in Analysis and Interpretation part, in the form of group correlation.
With the help of t-test it has also been proved that more than 60% of
consumers consume milk chocolate bars more than once in a week. It has
been calculated for all the three brands separately which has been taken in
the study.
If there will be change in price level of milk chocolate bars, then it will
affect the buying behavior of consumers and this finding has been proved
with the help of Chi-Square Test (2).
The most important factor which consumers consider while purchasing any
milk chocolate bars is Taste of that chocolate. They give preference to
other factors also, but most important thing is taste.
The buying behavior of consumers is also affected by the different type of
advertisements. And the most influencing media is electronic media, and
from reference group friends are at most influencing position.
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Quality is the most important factor which consumers consider while
switching over to any other brand of milk chocolate bars.
Consumers of Yamuna Nagar are more attracted towards the foreign
brands like Cadbury and Nestle and demand that more number of foreign
milk chocolate bars should be available in the market, like some milk
chocolate bars brands of Swiss and French chocolates. As this thing shows
that consumer of Yamuna Nagar are more satisfied with the foreign brands
and hence demand more of it. But brands like Amul are not able to get
proper place in the market in spite that good advertisement is being done
by Amul also.
One another finding of the research is that consumers of milk chocolate
bars of Yamuna Nagar are quite hesitant towards the use of unfamiliar
brands, whose advertisement they do not see on different type medias.
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51
LIMITATION
1. The time of research was short due to which many fact has been left
untouched.
2. The Area undertaken in research in Yamuna Nagar only. But to do a
completer research a wide area is required, so the area is also a constraint
of the study.
3. Sample for the study taken is of only 100 consumers. Which can also act as
a constraint in the study.
4. While collecting data some of the consumers are not willing to fill the
questionnaire, so they might not fill their true behavior. This can also be a
constraint of the study.
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SUGGESTIONS
A detail study of the “Consumer’s Buying Behavior of Age Group 18-25
For Milk Chocolates Bars” was done. Some important suggestions are as
follows:
1. Dealers should keep chocolates in cold storage in summers, and try to save
chocolates from sun light as they melt in hot place, which will ultimately
affect the buying behavior of consumer if he/she not feel satisfied.
2. The chocolates whose expiry dates goes off should be replaced at once and
fresh stock should be offered.
3. The retailers and distributors must be provided “Dispensers” and
company’s freezers or defreeze for storing chocolates, so that they can
offer good quality chocolates to consumers.
4. In Yamuna Nagar there is a scarcity of foreign chocolates. Here some of
customers are ready to pay premium prices but due to non availability they
have to satisfy with available brands.
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Conclusion
Every research activity ends with some conclusion and same happens with this
report also. By analyzing the collected data the conclusion which is arrived is as
follows:
Foreign Brands like Cadbury and Nestle has an edge over Indian brand like
Amul. Which is calculate as with the help Likert scale And the Value
comes out for Cadbury brand is 144 . But if we talk about Nestle Brand the
value comes out is 125. And for Amul this value comes out to be 90.
Which grades foreign brands to be Higher as compare to Indian brand of
milk chocolate bar.
Another conclusion of the study is that change in price has a substantial
effect on the buying behavior of consumer for milk chocolate bars as the
calculated value in Chi-Square test was .437and the table value comes out
to be 15.58 which shows that calculated value is lesser than table value,
hence the null hypothesis is selected that there is positive relation between
change in price level and purchasing decision of the consumers for milk
chocolate bars.
Different factors like Price, Taste , Brand Name , Packaging have an influencing
effect on the buying behavior of consumers for milk chocolate bars as shown
with the help of Group Correlation tool in which the correlation comes out to be
Positive.
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BIBLOGRAPHY
BOOKS
Marketing Management -Kotler Philip (1st edition reprint)o Chapter 7, Page 183
Marketing Research – Donald T.S (6th edition), Page 49 Marketing Research – Beri G.C (3rd edition), Page 79 Marketing Research – Boyd H.W (7th edition) Research Methods – Donald C.R (8th edition), Page 120 Basic Marketing – Pereaurt W.D (2nd edition), Page 450 Consumer Behaviour – Della A.J (4th edition), Page 15 Consumer Behaviour – Gupta S.L (2nd edition), Page 144 Consumer Behaviour – Schiffman & Kanauk (3rd edition) , Page 306
MAGAZINES & JOUNALS
Advertising Express- February 2006, Traditional Mass Media, By K.Suresh, Page 35
Marketing Mastermind – March 2006, Advertising Reaction ,By Barada Prasad Panigrhy, Research Associate , ICFAI Centre, Page 36
Indian Journal of Marketing – March 2006, Article By Dr.Banusmathy, Page 31
Business World – April 24,2006 , Page 8 Business India – Advertising , April 23,2006 Business Today – Trends, April 23,2006 Synergy - Article By Mittal Alok, January 2006,Page 74-85 Business Research – June 2005, Page 31
Websites
www.amul.com
www.nestle.com
www.cadburyindia.com
www.consumerpsychology.com
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QuestionnaireOn
“Buying behavior of consumer for Milk chocolate bar of age group 18-25
With special reference to 3 companies i.e.
Cadbury, Nestle and Amul”
Q. Do you like chocolate ?
Q1. Which companies’ chocolate do you purchase? Please rank them according to your preference.
Cadbury Nestle Amul RANK 1
RANK 2
RANK 3 RANK 4 RANK 5
Q2. What is your pattern of consumption?
More than one per day Daily One
3-4 Chocolate per week
Weekly Rarely
Q3. You purchase same chocolate every time…
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Name of the consumer ____________________________________
Age ____________________________________
Sex ____________________________________
Strongly Agree Agree
Neutral
Disagree Strongly Disagree
Q4. Which factor you consider the most while purchasing the chocolate?
Price Taste
Brand Packaging
Other
Q5. What extent of price tag influences your purchase decision of chocolate?
High High Average Average
Low Average Low
Q6. Which mode of advertisement influence you most to buy a particular chocolate? Magazine _______ Newspaper _______ Radio _______ Television _______ Other _______
Q7. Which reference group influence you most to buy a particular chocolate? Friends _______
Family _______ Retailer _______ Celebrity _______
Other _______
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Q8. You consider manufacturing and expiry date while buying any chocolate________
Strongly agree Agree
Neutral
Disagree Strongly Disagree
Q9. If you switch over to another brand of chocolate then what factor you consider?
Price Quality Brand Name
Advertisement and Reference group Taste
Q.10 What quality of chocolate attracts you ?
Quantity of sugar. Chocolate Flavor
Quantity of Milk.
Q11. Are you satisfy with the present brand of chocolate in Yamuna Nagar_______
Strongly Satisfy Satisfy
Neutral
Dissatisfy Strongly Dissatisfy
Q12. What is your suggestion for the improvement of your preferred chocolate brand?
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