35735409 Consumer Behaviour Towards Chocolates 1

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MARKETING RESEARCH

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PRESENTED BY:ANUJA SHAH 39DIPARNA SHETYE 45

INDEXSR

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CONTENTS PAGE NOS

.1 MEANING OF RESEARCH 12 MARKETING RESEARCH PROCESS 23 RESEARCH DESIGN 44 DATA COLLECTION 65 STEPS IN QUESTIONNAIRE

CONSTRUCTION12

6 SAMPLING 167. CONSUMER BEHAVIOUR 198. FACTORS INFLUENCING CONSUMER

BEHAVIOUR20

9. THE PURCHASE DECISION PROCESS 2210. ELEMENTS INFLUENCING THE

PURCHASE PROCESS23

11. PARTIES INFLUENCING PURCHASE DECISION

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12. CADBURY 2613. MARKET SURVEY 3214. DATA ANALYSIS 3714. LIMITATIONS IN RESEARCH 4615. BIBLIOGRAPHY 47

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MEANING OF RESEARCH

Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The Advanced Learner’s Dictionary of Current English lays down the meaning of research as a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Redman and Mory define research as a “systematized effort to gain new knowledge.” Some people consider research as a movement from the known to the unknown. It is actually a voyage of discovery.

Research is an academic activity and such a term should be used in a technical sense. According to Clifford Woody research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions to determine whether they fit the formulating hypothesis. D.Slesinger and M.Stephenson in the Encyclopedia of Social Sciences define research as “the manipulation of things, concepts or symbols for the purpose of generalizing to extend, corrector verify knowledge, whether that knowledge aids in construction of theory or in the practice of art.” Research is thus an original contribution to the existing stock of knowledge making for its advancement. It is the pursuit of truth with the help of study, observation, comparison and experiment. In short, the search for knowledge through objective and systematic method of finding solution to a problem is research. The systematic approach concerning generalization and the formulation of a theory is also research. As such the term ‘research’ refers to the systematic method consisting of enunciating the problem, formulating a hypothesis, collecting facts or data, analyzing the facts and reaching certain conclusion either in the form of solutions towards the concerned problem or in certain generalization for some theoretical formulation.

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MARKETING RESEARCH PROCESS

Marketing research is the systematic design, collection, analysis an reporting of data and findings relevant to a specific marketing situation facing the company.

Marketing research process

Define the problem and research objective

Develop the research plan

Collect the information

Analyze the information

Present the findings in Report

Make decisions

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Step 1: Define the problem and the research objectives

The 1st step in research is formulating a research problem. It is most important stage as poorly defined problems will not yield useful results. Also the marketing management must be careful not to define the problem too broadly or too narrowly. In order to identify the research problem, three categories of symptomatic situations, namely, overt difficulties, latent difficulties and unnoticed opportunities should be studied. Overt difficulties are hose which are quite apparent and which manifest themselves. Latent difficulties are those which are not so apparent and which, if not checked, would soon become evident. Unnoticed opportunities indicate the potential for growth in a certain area of marketing. Such opportunities are not clearly seen and dome effort is required to explore them.

Step 2: Develop the research plan

Designing a research plan calls for decisions on data sources, choice of research design, research approaches, research instruments, sampling plan and contact methods.

Step 3: Collect the information

Our research group collected the information over a period of 15 days and from various locations such as malls, residential complexes, colleges and schools and also retailers.

Step 4: Analyze the information

After the process of gathering information was completed we tabulated the data and developed frequency distributions and extracted the findings from the survey.

Step 5: Present the findings

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Finally we prepared a project report on our survey and along with the findings we also presented our recommendations.

Step 6: Make the decision

RESEARCH DESIGN

A research design is the detailed blueprint used to guide a research study toward its objectives. The process of designing a research study involves many interrelated decisions. The most significant decision is the choice of research approach, because it determines how the information will be obtained.

To design something also means to ensure that the pieces fit together. The achievement of this fit among objective, research approach, and research tactics is inherently an iterative process in which earlier decisions are constantly reconsidered in light of subsequent decisions.

Types of Research Designs

The different research designs can be categorized into research design in case of:

1. Hypothesis- Testing Research Studies (Experimental Studies)2. Exploratory Research Studies.3. Descriptive And Diagnostic Research Studies

Hypothesis- Testing Research Studies• Hypothesis-tested research studies (experimental

studies) are those where the researcher tests the hypothesis of casual relationship between variables.

• Such studies require procedures that will not only reduce bias and increase reliability, but will permit drawing inferences about casuality.

• Professor R.A. Fisher begun such designs when he was working at Rothamsted Experimental Station (Centre for Agricultural Research in England).

• Professor Fischer found that by dividing agricultural fields or plots into different blocks and then by conducting experiments in each of these blocks, the information

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collected and inferences drawn happen to be more reliable.

• This fact inspired him to develop certain experimental designs for testing hypotheses concerning scientific investigation.

Difference between exploratory and descriptive research

RESEARCHDESIGN

Types of study

Exploratory of

formulative

Descriptive /

DIAGNOSTIC

Overall design Flexible design (design must provide opportunity for considering different aspects of the problem)

Rigid design (design must make enough provision for protection against and must maximize reliability)

(i) sampling design

Non- probability sampling design (purposive or judgement sampling)

Probability sampling design (random sampling)

(ii) statistical design

No pre-planned design for analysis

Pre-planned design for analysis

(iii) observational design

Unstructured instruments for collection of data

Structured or well thought out instruments for collection of data

(iv) operational design

No fixed design about the operational procedure

Advanced decisions about operational procedures

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DATA COLLECTION The task of data collection begins after problem has been identified. While deciding about the method of data collection to be used for the study the researcher should keep in mind two types of data viz, primary data and secondary.

The primary data are those, which are collected afresh and for first time and thus happen to be original in character. The secondary are those which have been collected by someone else and which have already been passed through statistical process.

The researcher would have to decide which sort of data he would be using for his study. The method collecting primary and secondary data differ since primary data are to be originally collected while in case of secondary data the nature of data collection work is merely that of compilation.

There are several ways of collecting primary data. They are as follows:

1. Observation method 2. Interview method 3. Through questionnaires 4. Through schedules

OBSERVATION METHOD

Observation becomes a scientific tool and the method of data collection for the researcher when it serves a formulated research. Purpose is systematically planned and recorded and is subjected to checks and controls on validity and reliability. Under the observation method the information is sought by way of investigators own direct observation without asking from respondent

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SURVEYS [Questionnaire to public]

Surveys are concerned with describing, recording, analyzing and interpreting conditions that exist or existed. The researcher does not manipulate the variable or arrange for events to happen Surveys are only concerned with conditions or relationships that exist, opinions that are held, processes that are going on, effects that are evident or trends that are developing. They are primarily concerned with present but at times do consider past events and influences as they relate to current conditions.

Survey type researches usually have larger samples because percentages of responses generally happen to be low, as low as 20 to 30%, especially in mailed questionnaire studies. Thus, the survey method gathers data relatively from the large number of cases at a peculiar time; it is essentially cross-sectional.

Surveys are conducted in case of descriptive research studies, usually appropriate in case of social and behavioral sciences because many types of behavior that interest researcher cannot be arranged in realistic setting.

Surveys are example of field research and are concerned with hypothesis formulation and testing analysis of the relationship between non-manipulated variables.

Surveys may either be census or sample surveys. They may also be classified as social surveys, economic surveys, public opinion surveys. Whatever be their type, the method of data collection happens to be either observation or interview or questionnaire or opinionnaire or some projective technique. Case method may as well be used.

In case of surveys, research design must be rigid, must make economical provision for protection against bias and must maximize reliability, the aim happens to be to obtain complete and accurate information.

Possible relationships between the data and the unknowns in the universe can be studied through surveys.

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COLLECTION OF SECONDARY DATA

Secondary data means that are already available that is they refer to the data, which have already been collected and analyzed by someone else. When the researcher utilizes secondary data, then he has to look into various sources from where he can obtain them. In this case he is certainly not confronted with the problems that are usually associated with the collection of original data. Secondary data may be either published or unpublished data. Usually published data are available in:

Various publications of the central, state and local government Various publications of foreign government or of international bodies

and their subsidiary organization. Technical and trade journals Books magazines and newspapers Reports publication of various associations connected with business

and industry, banks, stocks exchanges etc Reports prepared by various scholars’ universities economists etc in

different field Public records and statistics, historical documents and other sources of

publish information. The sources of unpublished data are many; they may be found in diaries, letters unpublished biographies and autobiographies and also may be available with scholar’s research workers. Trade organization, labor bureaus and other public/private organizations

Researcher must be careful in using data. He must make a minute because it is just possible that the secondary data may be unsuitable or maybe be inadequate in the context of a problem which the researcher wants to study.

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Selection of appropriate methods for data collection

Nature scope and object of enquiry: This constitutes the most important factor affecting the choice of a particular method .the method selected should be such that it suits the type of enquiry that is to be conducted in the researcher, this factor is also important in deciding whether the data already available are to be used not yet available are to be collected.

Availability of funds: Availability of funds for the research project determines to a large extent the method to be used for the collection of data. When the funds at the disposal of the researcher are very limited, he will have to select a comparatively cheaper method. Finance in fact is big constraint in practice and the researcher has to act within this limitation

Time factor: Availability of time has also to be taken into account in deciding particular method of data collection. Some methods take relatively more time whereas with others the data can be collected in a comparatively shorter duration. The time at the disposal of the researcher thus affects the selection of the method by which the data is collected.

Precision required: Precision required is yet another important factor to be considered at the time of selecting the method of collection of data.

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Data Collection Instruments

1) PERSONAL INTERVIEWAn interviewer asking questions generally face-to-face to other persons conducts personal interview. This sort of interview may be in the form of direct personal investigation or it may be an indirect oral investigation. This method is particularly suitable for intensive investigations.

2) TELEPHONE INTERVIEWS This method of collecting information consists contacting information consists contacting respondents on telephone itself. It is not a very widely used method, but plays important role in industrial surveys in developed regions.

3) COMMERCIAL SURVEYSCommercial surveys can be divided into three types: Periodic, Panel and Shared surveys. Each of them are discussed below

Periodic surveysPeriodic surveys are conducted at regular intervals, ranging from weekly to annually held surveys. They use a new sample of respondents for each survey, focusing on the same topic and allowing the analysis of trends over a period. Periodic surveys are conducted by mail, personal interview and telephone.

Panel surveysPanel surveys, sometimes called interval panels, are conducted among a group of respondents who have agreed to respond to a number of mail, telephone or occasionally personal interviews over time. These need not occur regularly. But a continuous panel or panel data (explained more in panels) refers to a group of individuals who agree to report specified behaviors over time.

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Shared surveysShared surveys, sometimes referred to as omnibus surveys, are administered by a research firm and consist of questions supplied by multiple clients. Such surveys can involve mail, telephone, or personal interviews. The respondents may be drawn from either an interval panel or random selection. The main advantage here is the cost factor.

4) AUDITSAudits involve the physical inspection of inventories, sales receipts, shelf facing and other aspects of marketing mix to determine sales, market share, relative price, distribution and other relevant information. The different types of audits are store audits, product audits and retail distribution audits.

5) PANELSA panel is a group of individuals or organizations that have agreed to provide information to researcher over a period of time. A continuous panel, the focus of this section, has agreed to report specified behaviors on regular basis. There are 2 types of panels: retail and consumer, consumer further divided into diary panels and electronic panels.

6) MAIL QUESTIONNAIRE

A mail questionnaire is free from any interviewer’s bias and errors, which may undermine the reliability and validity of the results emerging from the survey. A mail questionnaire will not have any distribution bias as it will not show any particular preference or dislike for a certain individual or household. When the questions asked to the respondents need time to be answered and needs some thinking, mail questionnaire is ideal. Mail Questionnaire saves time in collecting the desired information as a large no. Of respondents can be approached all over the country. It saves money as cost of traveling, boarding and lodging of interviewers is not to be incurred. There is no difficulty in having central supervision and control over the survey operations over a large region. It avoids the bias arising from any inhibitions in answering questions. (During some personal questions the respondents may hesitate to answer them in the presence of the interviewer). It will not have the problem of non-contacts in the strict sense, as might be the case in personal interviews when the interviewer finds that the respondent, being away from home is not available.

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STEPS IN QUESTIONNAIRE CONSTRUCTION

A Questionnaire is often the heart of a survey operation. If the heart is not properly set up then the whole operation is bound to fail. Thus studying the main objective of the questionnaire is important. There are two main objectives in designing a questionnaire:

1. To maximize the proportion of subjects answering our questionnaire that is, the response rate: To maximize our response rate, we have to consider carefully how we administer the questionnaire, establish rapport, and explain the purpose of the survey. The length of the questionnaire should be appropriate.

2. To obtain accurate relevant information for our survey: In order to obtain accurate relevant information, we have to give some thought to what questions we ask, how we ask them, the order we ask them in, and the general layout of the questionnaire.

Thus the most important parameters in questionnaire designing can be described as:

1. Question Content2. Question Phrasing3. Question Sequencing4. Question Layout

1. Question content: For each question in the questionnaire, we should pay attention to how well it addresses the content we are trying to get at.

Deciding what to ask there are three potential types of information: Information we are primarily interested in that is, dependent variables. Information which might explain the dependent variables-that is,

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independent variables. Other factors related to both dependent and independent factors, which may distort the results and have to be adjusted for - that is, confounding variables.

Thus while forming the question content the following question must be answered appropriately.

1. Is the Question Necessary/Useful?Examine each question to see if there is a need to ask it at all and if you need to ask it at the level of detail you currently have.

2. Do Respondents Have the Needed Information?Look at each question to see whether the respondent is likely to have the necessary information to be able to answer the question.

3. Does the Question Need to be More Specific?Sometimes the questions are too general and the information we obtain is more difficult to interpret.

4. Is Question Biased or Loaded?One danger in question writing is that your own biases and blind spots may affect the wording.

5. Will Respondents Answer Truthfully?For each question see whether the respondent will have any difficulty answering the question truthfully. If there is some reason why they may not, consider rewording the question.

2. Question phrasing: The way questions are phrased is important and there are some general rules for constructing good questions in a questionnaire.

Use short and simple sentences Short, simple sentences are generally less confusing and ambiguous than long, complex ones. As a rule of thumb, most sentences should contain one or two clauses.

Ask for only one piece of information at a time For example, "Please rate the lecture in terms of its content and presentation" asks for two pieces of information at the same time. It should

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be divided into two parts: "Please rate the lecture in terms of (a) its content, (b) its presentation."

Avoid negatives if possible Negatives should be used only sparingly. For example, instead of asking students whether they agree with the statement, "Small group teaching should not be abolished," the statement should be rephrased as, "Small group teaching should continue." Double negatives should always be avoided.

Ask precise questions Questions may be ambiguous because a word or term may have a different meaning.

3. Question sequencing: In order to make the questionnaire effective and to ensure quality to the replies received, a researcher must pay attention to the question-sequence in preparing the questionnaire.

• A proper question sequence reduces the chances of the questions being misunderstood

• The question sequence must be clear and smooth- moving, with questions that are easiest to answer being put in the beginning.

• The first few questions are particularly important because they are likely to influence the attitude of the respondent and in seeking his desired cooperation.

• Following the opening questions are the question that are rally vital to the research problem and a connecting thread should run through successive questions.

• Relatively difficult questions must be relegated towards the end so that even if the respondent decides not to answer such questions, considerable information would have been obtained.

• The order of the questions is also important. Some general rules are: -Go from general to particular. -Go from easy to difficult. -Go from factual to abstract. -Start with closed format questions. -Start with questions relevant to the main subject. -Do not start with demographic and personal questions.

4.Question layout:

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• Questions should form a logical part of a well thought out tabulation plan.

• Questions should basically meet the following standards -Should be easily understood -Should be simple

-Should be concrete and should conform as much as possible to the respondent’s way of thinking.

• Items on a questionnaire should be grouped into logically coherent sections. Grouping questions that are similar will make the questionnaire easier to complete, and the respondent will feel more comfortable. Questions that use the same response formats, or those that cover a specific topic should appear together.

• Each question should follow comfortably from the previous question. Writing a questionnaire is similar to writing anything else. Transitions between questions should be smooth. Questionnaires that jump from one unrelated topic to another feel disjointed and are not likely to produce high response rates.

Conclusion: Questionnaire design is a long process that demands careful attention. Design begins with an understanding of the capabilities of a questionnaire and how they can help the research. If it is determined that a questionnaire is to be used, the greatest care goes into the planning of the objectives. Questionnaires are like any scientific experiment. One does not collect data and then see if they found something interesting. One forms a hypothesis and an experiment that will help prove or disprove the hypothesis.

Questionnaires are versatile, allowing the collection of both subjective and objective data through the use of open or closed format questions. However, a questionnaire is only as good as the questions it contains. Mindful review and testing is necessary to weed out minor mistakes that can cause great changes in meaning and interpretation. When these guidelines are followed, the questionnaire becomes a powerful and economic evaluation tool.

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SAMPLING

Census versus Sample Census in simple terms means to measure each element in the group

or population of interest. A part of a population, or a subset from a set of units, which is

provided by some process or other, usually by deliberate selection with the object of investigating the properties of the parent population or set.

Surveys of industrial consumers or of distributors of consumer products are frequently in the form of a census.

However there are certain reasons, which make census impractical or even impossible. The reasons are as follows:

1. Cost : Cost is an obvious constraint on the determination of whether a census should be taken. If information is desired on grocery purchase and use behaviour (frequencies and amounts of purchase of each product category, average amount kept at home and the like) and the population of interest is all households in a country, the cost will preclude a census being taken. Thus a sample is the only logical way of obtaining new data from a population of this size.

2. Time : The kind of cost we have just considered is an outlay cost. The time involved in obtaining information from either a census or a sample involves the possibility of also incurring an opportunity cost. That is, the decision until information is obtained may result in a smaller gain or a larger loss than would have been the case from making the same decision earlier. The opportunity to make more (or save more, as the case may be) is, therefore, foregone.

3. Accuracy : A study using a census, by definition, contains no sampling error. A study using a sample may involve

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sampling error in addition to other types of error. Other things being equal, a census will provide more accurate data than a sample.

However it has been argued that a more accurate estimate of the population of a country could be made from a sample than from a census. Taking a census of a population on a “mail out – mail back” basis requires that the names and addresses of almost all households be obtained, census questionnaires mailed, and interviews conducted of those not responding. The questionnaires are sent to a population of which only about half have completed high school. The potential for errors in a returned questionnaire is therefore high.

Destructive nature of the measurement: Measurements are sometimes destructive in nature. When they are, it is apparent that taking a census would usually defeat the purpose of a measurement. If one were producing firecrackers, electrical fuses, or gas seed, performing a functional use test on all products for quality control purposes would not be considered from an economic standpoint. A sample is then the only practical choice. On the other hand, if the light bulbs, bicycles, or electrical appliances are to be tested, a 100% sample (census) may be entirely reasonable.

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The Sampling Process

Step Description1. Define the population The population is defined in terms of a) element, b)

units, c) extent and d) time.2. Specify sampling frame The means of representing the elements of the

population – for example telephone book, map, or

city directory – are described.3. Specify sampling unit The unit for sampling – for example, city block,

company, or household – is selected. The sampling

unit may contain one or several population

elements.4. Specify sampling method The method by which sampling units are to be

selected is described.5. Determine sample size The number of elements of the population to be

sampled is chosen.6. Specify sampling plan The operational procedures for selection of the

sampling units are selected.7. Select the sample The office and fieldwork necessary for the selection

of the sample are carried out.

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CONSUMER BEHAVIOUR

Consumer behaviour is the study of how people buy, what they buy, when they buy and why they buy. It is a subcategory of marketing that blends elements from psychology, sociology, sociopsychology, anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

Consumption is the “process of production, acquisition, utilization and destruction of goods, services, experiences or places”

Why should we care?

In Short run - To understand the behaviors and attitudes of the consumers when choosing a product or a Brand

In long run - To detect trends, develop new products and find the language adapted to the target

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FACTORS INFLUENCING CONSUMER BEHAVIOUR

1. Cultural factor

Subculture People with shared value systems based on common life experiences

and situations. Subcultures include nationalities, religions, racial Groups, and geographic areas. The HSBC bank in Canada, web site in Mandarin and Cantonese [in

addition to English and French] to court the growing and Affluent Asian community.

2. Social factor

Family

Cultural

CultureSubculture

Social Class

Psychological

MotivationPerceptionLearningBeliefs &Attitudes

Personal

Age & lifecycle stageOccupationEconomicsituationLifestyle

Personality

Social

ReferenceGroupsFamily

Roles andstatus

Buyer

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Family members can strongly influence buyer behaviour. Husbands, wives, and children have varying influences on different product and services.

Family buying influences: Lowe’s targets women shoppers who initiate 80% of all home improvement decisions. Lure women and they will drag their husbands behind them.

3. Personal factor

Lifestyle A person’s pattern of living as expressed in their activities, interests,

and opinions. It profiles a person’s whole pattern of acting and interacting in the world.

To promote its premium image to a new target market, Sleeman beer ads reveal a dynamic and sophisticated city image.

4. Psychological factor

Attitude A person’s consistently favorable or unfavorable evaluations, feelings,

and tendencies toward an object or idea. Attitudes are difficult to change, but the Milk processor’s wildly

popular milk moustache campaign succeeded in changing attitudes towards milk.

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THE PURCHASE DECISION PROCESS

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ELEMENTS INFLUENCING THE PURCHASE PROCESS

2. INFORMATION SEARCH

1. NEED [PROBLEM RECOGNITION]

LOYALTY

3. EVALUATION OF ALTERNATIVES

5. POST-PURCHASE EVALUATION

4. PURCHA

SE

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1. Need is different from motivation- Need is a state of tension, while motivation is the force that pushes to reduce this state of tension

2. It’s difficult to create a need

3. Needs can be- Conscious but not declared- Unconscious

PERCEPTION

MEMORIZATIONLOYALTY

SATISFACTION

NEED

INVOLMENT

PURCHA

SE

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PARTIES INFLUENCING THE PURCHASE PROCESS

FAMILY

FRIENDS

OPINION LEADERS

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Family

Household:

– A group of persons who share a same principal residence, whatever the links, of kinship or others, that unite them. A household can be reduced to a single person.

Family:

– Part of a household constituted either by a couple (married or not), and, if need be, their children or by a person without spouse and his/ her children.

Friends and Opinion leaders

Friends:

– Group of belonging– Reference group– From group to tribe

Opinion leaders:

– “One is considered as leader when he/ she are recognized as such by the others”– A leader in a category of products is not necessarily leader in another

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“THE SWEET TOOTH OF THE WORLD”

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CADBURY INDIA

Background

Cadbury Schweppes is the No.1 confectionery and third largest soft drinks company in the world. The origin of the group goes back to over two centuries. Some of the popular international brands of the company are Cadbury Dairy Milk, Dr Pepper, Flake, Trebor Basset, Snapple and Motts. The company also has Halls, Clorets, Trident, Dentyne and Bubbas bubble gum range in its portfolio with acquisition of Adams in December 2002.

Since 1969, Cadbury Schweppes’ has focused on confectionery and non-alcoholic beverages. In 2004, 60 per cent of the Group’s net sales came from confectionery and 40 per cent from beverages. The company employees around 55,000 people in over 200 countries around the world.

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Cadbury in India

Cadbury India is a wholly owned subsidiary of Cadbury Schweppes which has operated in the country for more than 55 years. It was originally incorporated as a wholly owned subsidiary of Cadbury Schweppes Overseas Ltd in 1948. The company today employs nearly 2,000 people across India. Cadbury India is the No. 1 confectionery company with a 70 per cent market share in India. It is a dominating player in the Indian chocolate market with strong brands like Dairy Milk, Five Star, Perk, Gems, etc. Dairy milk is the largest chocolate brand in India.

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Cadbury is mainly into three segments

1. Chocolates - Cadbury India is the market leader in the chocolate confectionery market in India with over 70 per cent market share. The leading brands in this category are Cadbury’s Dairy Milk, Fruit & Nut, Crackle, Temptations, 5 Star, Perk & Celebrations Gift boxes. For more than five decades now, Cadbury has enjoyed leadership position in the Indian chocolate market to the extent that 'Cadbury’ has become a generic name for chocolate products. Cadbury has leading brands in all the segments viz bars (Dairy Milk, Crackle, Temptations), count lines (5 star, Milk Treat), panned confectionery (Gems) and wafer chocolates (Perk), éclairs (Cadburys' Eclairs), toffees (English Toffee).

2. Sugar Confectionery – Cadbury Dairy Milk Eclairs is one of the leading brands in this category. It is amongst the largest éclair brands in the market in terms of value share. Cadbury also owns Halls (which was acquired as a part of the global acquisition of the Adams business from Pfizer in 2003). Halls is amongst the largest brands in its segment of Minty / Breath freshness brands in India.

3. Food Drinks – Cadbury’s Bournvita is a leading brand in the brown drinks segment of milk / malted food products. Cadbury’s other products include Drinking Chocolate and Cocoa powder. Overall share in the malted food drinks market is estimated to be around 19 per cent.

The company has recently made a foray into snacking category with Cadbury Bytes, its sweet snacking brand. The company has been performing well in India. The net sales of the company have increased from around US$ 131.6 million in 2000 to US$ 166.3 million in 2004.

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Factors for Success

1. Extensive distribution network Cadbury’s brands are available in over a million outlets across the country. The distribution network directly covers almost the entire urban population. The company has invested significantly in building such an extensive network. The company uses Information Technology to improve its logistics and distribution competitiveness. Cadbury has improved the distribution quality of its products with the installation of refrigerators at several outlets. This helps in maintaining product quality in summer, when sales usually dip due to the fact that the heat affects product quality and thereby consumption.

2. Creation of strong brands Cadbury owes its success to strong brand equity and resultant consumer preference that it enjoys in India. The company has built strong brand equity through consistently high product quality, relevant, insightful and entertaining communication. Cadbury has developed new channels for marketing its brands such as Gifting and Snacking. The company places great emphasis in ensuring display dominance at the point of purchase

3. Customization of products for India Cadbury India has spent time in understanding the Indian consumers. Leveraging its 55 years of experience in India, the company has customized its products to the Indian markets. It also offers products at affordable price points so as to increase its market penetration.

4. Leveraging the India Advantages Though, India contributes to less than 5 per cent of the global revenues today, India is critical to the global strategy of the company

5. Managerial Talent Cadbury has begun recruiting management graduates in India to serve its global operations.

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6. Huge market potentialIndia offers huge market potential and is a priority market for Cadbury. The company also leverages India as a manufacturing base for producing products for the overseas market. Cadbury India has 4 company owned factories and as many third party manufacturing contractors. It also has a wide Sales & Distribution infrastructure consisting of 33 depots managed by 4 regional sales branches across India.

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MARKET SURVEY FOR CHOCLATESQUESTIONNAIRE FOR CONSUMERS

Name : ____________________________________________

Gender : _____________

Age group : 16-20 yrs 21- 30 yrs

What do you normally prefer to eat as a sweet item ___________________________

Do you like chocolates?

Very much Okay Not much Not at all

How many times you buy chocolates?

Once every day 2- 3 times a week Once a week On special occasions only Others, please specify

What do chocolates signify to you?

________________________________________

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Where do you normally buy chocolates from?

Your local kirana shops Supermarkets like Big Bazaar

Rate your preferences in choice of chocolates on a scale of 1-5 (5 being highest rank)

Taste Sweetness Price Calories Brand of the chocolate Packaging Ingredients/ flavors

Which brand of chocolates you prefer?

Nestle Cadbury’s Amul Foreign brands like Hershey’s Any other, please specify

_______________________________________________

Why do you prefer that particular brand?__________________________________________________________________________________________________________________________

Is there anything that you feel is lacking in your preferred brand of chocolates? If yes, please describe __________________________________________________________________________________________________________________________

Do you think that the present choices available in chocolates are costly? If yes, what will be your ideal price range?

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Would you prefer to switch to chocolates of another brand if it is cheaper than your preferred brand without any change in quality & taste?__________________________________________________________________________________________________________________________

Do continue eating chocolates of a company if it has some controversy in market or do you lose trust?

Yes No

Does a Personality like AMITABH BACHHAN or RANI MUKHERJI or PREITY ZINTA influences your decision of buying a particular brand of chocolate?

Yes No Not completely

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MARKET SURVEY FOR CHOCOLATESQUESTIONNAIRE FOR RETAILERS

Name of the shop : ________________________________________________________

Location : _____________________________________________________________

Which brands of chocolates does the shop sell?

__________________________________________________________________________________________________________________________

Highest sales of which brand of chocolates (i.e. how many in 1 day)

________________________________________________________________________

What are customer’s preferences in the choice of chocolates?

Taste Sweetness Price Calories Brand of the chocolate Packaging Ingredients/ flavors

Sales of chocolates are highest during which period?________________________________________________________________________

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Are there any customer complaints about the existing brands of chocolates?

_____________________________________________

Has the demand for chocolates risen in the past few years?

________________________________________________________________________

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DATA ANALYSIS FOR CONSUMERS

Sample Size: 25 respondents 20 consumers – 82% 5 retailers – 18%

SAMPLE SIZE

Consumers 82%

Retailers 18%

Consumers

Retailers

20 Consumers:9 males – 46%11 females – 54%

CONSUMERS

Males 46%

Females54%

Males

Females

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Age group: 16-20 years: 10 respondentsMales: 4 respondentsFemales: 6 respondents

Age group: 21-30 years: 10 respondentsMales: 5 respondentsFemales: 5 respondents

AGE GROUP : 16 - 20

Males 60%

Females 40%

MalesFemales

AGE GROUP: 21-30

Males

50%

Females

50%

Males Females

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Normally prefer as a sweet item

Chocolates: 53%Ice creams: 11%Traditional Sweets: 28%Cake: 6%

PREFERENCE AS A SWEET ITEM

54%

11%

29%

6% Chocolates

Ice creams

Traditional Sweets

Cake

Do you like chocolates?

Very much: 59%Okay Okay: 28%Not much: 11%Not at all: 2%

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LIKE AND DISLIKE OF CHOCOLATES

59%28%

11%2%

Very much

Okay Okay

Not much

Not at all

How many times do you buy chocolates?

Once every day: 33%2-3 times a week: 30%Once a week: 12%Special occasions: 25%

BUYING PATTERN

Once every day33%

2-3 times a week30%

Once a week12%

Special occasions

25% Once every day

2-3 times a week

Once a week

Special occasions

Where do you normally buy chocolates from?

Kirana shop: 79%Supermarkets: 9%Both: 12%

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PREFFERED DISTRIBUTION CHANNEL

79%

9%

12%

Kirana shop

Supermarkets

Both

Which are the top attributes a consumer looks for while making his decision?

28% respondents said taste was the most important factor of selection27% respondents said brand was the most important factor of selection25% respondents said ingredients/ flavours was the most important factor of selection20% respondents said packaging was the most important factor of selection

PREFERENCES

Taste28%

Brand27%

Ingredients25%

Packaging20%

Taste

Brand

Ingredients

Packaging

On an average the scale of preference was as follows: 1st priority: Taste2nd priority: Brand3rd priority: Packaging

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4th priority: Flavors5th priority: Sweetness/less sweet6th priority: Calories7th priority: Price

Which brand of chocolates you prefer?

Cadbury’s: 57%Nestle & Cadbury: 18%Cadbury & Foreign Brands: 10%Only Foreign Brands: 9%Amul: 2%Nestle: 2%Nestle & Foreign Brands: 2%

MARKET LEADER

57%18%

10%

9%

2%

2%

2% Cadbury’s

Nestle & Cadbury

Cadbury & ForeignBrands

Only Foreign Brands

Amul

Nestle

Nestle & ForeignBrands

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Why do you prefer your choice of brand?

Majority of the respondents said that they liked a particular brand of their choice especially Cadbury because of taste, quality and most importantly brand name and packaging.

Is there anything lacking according to you in your preferred brand? (amongst the existing varieties)

No: 84%Yes:16%

SATISFACTION GRAPH

No84%

Yes16%

No

Yes

The respondents who replied yes, have stated the following attributes as lacking in the existing varieties of chocolates:

• Lack of chocolates in attractive shapes• High price• Not enough crunchier• Not good as compared to foreign brands

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Are the present choices available in chocolates, costly? If yes, what will be your ideal price range?

Yes: 45%No: 55%

PRICES: HIGH OR LOW

No55%

Yes45% No

Yes

Would you prefer to switch to another brand?

Yes: 53%No: 43%Indifferent: 4%

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PRICE SENSITIVITY OF CONSUMERS

No43%

Yes53%

Indifferent4%

No

Yes

Indifferent

DATA ANALYSIS OF RETAILERS

Which brand of chocolates does shop sell?

22% of retailers stock cadbury’s19% or retailers stock Nestle13% of retailers stock Amul3% of retailers stock imported brands.

Which brand has the highest sales?

HIGHEST SALES

Cadbury's, 19, 86%

Nestle, 3, 14%

Cadbury's

Nestle

When is the sale of chocolates the highest?

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Festivals, 19, 86%

All Time, 3, 14%

Festivals

All Time

Sales are normally higher during Festivals. Special occasions like Valentines Day, Friendship day.

LIMITATIONS OF THE RESEARCH

1. Large size of target population

The target population of chocolates is each and every person with teeth right from children to old people. Our sample size of 25 thus cannot be said to be the correct representation of the target market.

2. Fragmentation

Chocolates are not only sold in exclusive shops but also sold in simple retail shops. Thus it is very difficult to estimate the sales and buying pattern of consumers in general.

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BIBLIOGRAPHY

BOOKS REFERRED

BOOK NAME AUTHOR’S NAME

MARKETING MANAGEMENT PHILIP KOTLER

WEBSITES

www.cadburysindia.comwww.cadbury.comwww.cadburydairymilk.comwww.cadburyltd.comwww.google.comwww.wikipedia.comwww.ask.comwww.rediff.com

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www.yahoo.com

NEWSPAPERS REFERRED MAGAZINES REFERRED

1. BRAND LINE 1.COMPETITION SUCCESS REVIEW

2. ECONOMIC TIMES

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