Consumer Behaviour Towards Chocolate

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A

PROJECT REPORT

On

Consumer Behavior towards chocolate Brands

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DECLARATION

(Signature of Candidate)

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CERTIFICATE

It is certified that the project entitled CONSUMER BEHAVIOR TOWARDS

CHOCOLATE BRANDS submitted

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PREFACE

The customer is king. Finally ten years after the liberalization of Indias 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 its

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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CONTENTS

Introduction to the study

Objectives of the study

Research Methodology

A. Problem Statement

B. Research Design

Area of Study

Objective of the StudyC. Data Collection

Data Collection Methods

Data Collection Techniques

D. Sampling Design

Sampling Unit

Sample Size

Sampling Techniques

Limitations of the study

Analysis & Interpretation

Findings

Conclusions

Suggestions

Annexure

Questionnaire

Bibliography

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INTRODUCTION TO THE STUDY

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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 wordchocolate 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 chocolate to be theFOOD OF THE GOD

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Firstly, there is a need to know about the chocolatethat what is chocolate. Whychocolate 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, as with vanilla.

2. A beverage or confection made from this.

3. Dark brown.

4. A divine substance inspiring passion in those who consume it.

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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 lets 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 wasnt 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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EVOLUTION OF CHOCOLATE

Chocolate is created from the cocoa bean. A cacao tree with fruit pods in various stages

of ripening

(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 Hannons Best chocolate.

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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 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 throughthe 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

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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 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.

(1850-1986)

1850s 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 revealedthat 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 renowned 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

fathers 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 continues to

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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 Nestles

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 controlledtemperature 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 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

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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 Cellas Confections, on West

Broadway and canal, was a part of many factories that made up New York

Citys confectionary district. In 1929 their candy factory began

manufacturing chocolate-covered cherries. Today, while the other

confectioneries have disappeared, Cellas 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.

1940s As the United States geared up for a war in Europe, Militon Hershey

suggested an addition be made to the standard soldiers D-Ration. The

American military began to include three 4 ounce, 600 calorie chocolate

bars in each D-Ration. While from todays perspective this may seem

odd, the Aztecs had used chocolate for the edification of their ownwarriors. 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 Keaau 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.

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MAJOR PLAYER IN THE MARKET

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

players in the chocolate and sugar confectionary segment. The parent has a 51 percent

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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 companys 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 Hersheys 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.

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 to15.7 per cent. Post-tax earnings rose

an 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.

Cadbury was controversially taken by Kraft co.ltd in February 2010.Cadburys market

share in India is 79%

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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,

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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 worlds 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 acquiredPeter, Cailler, and Kohler. Nestle chocolates has increased its sales tremendously in

India. Latest news for nestle chocolates India is,that it will not only be undertaking

selective price hikes, but will also be reducing the weight for its chocolate products in

order to combat rising raw material costs, reportsThe Economic Times.

According to company sources, the weight of Nestle's Kit Kat, Milkybar and Munch

chocolate bars will be reduced by around 5-7%, which implies a price hike of around 7%.

Sources expect this measure to pan out by April end, the report adds.

Although Nestle's milk product division generates the majority of its revenues, chocolates

generate nearly 15% of sales for the company.Nestle's move follows market leader, Cadbury India's Rs 5 (9%) price hike of its flagship

brand, Cadbury Dairy Milk to Rs 60, the report says.Nestles market share in India is

14%.

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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, GCMMFs 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

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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,

Amuls 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.amul chocolates market share in India is 5%.

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Consumer

Behavior

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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 resource (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 consumers 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 consumers 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

Firms Marketing Efforts

Psychological Factors

Perception

Motivation

Attitude

Learning

Personality

Family Reference Group

Other non-commercial

influence

Social class

Culture and sub-

Socio culture Environment

Purchase

Trial

Repurchase

Post purchase evaluation

Need recognition

Information search

Valuation

alternatives

Input

ocess

utput

CONSUMER DECISION MAKING PROCESS

External influences

Consumer Decision Making

Post Purchase Behavior

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INPUTS

The input component draws on external influences that serve as sources of

information about a particular product and influence a consumers 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 consumers 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 consumers 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 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:

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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 consumers satisfaction with

his/her purchase.

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.

OBJECTIVE OF THE STUDY

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1. 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.

4. To study the usage & brand awareness of chocolates product in

among the residents of Lucknow.

5. To checkout the satisfaction level of the consumers for chocolate bars

they are using.

Research Methodology

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RESEARCH METHODOLOGY

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 itslimitations. 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.

A) PROBLEM STATEMENT:-

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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 Bhiwani 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.

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a) Area of study

The area of the study is different Markets of Bhiwani in order to collect the Primary data

from the respondents.

b) Study area

Study area is Lucknow.

c) Target Segment

Consumers of Milk chocolates bars of age group 18-25

C) SELECTION OF SAMPLE:-

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 18-25)

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.

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IISampling 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: 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

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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 aquestionnaire 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. Data presented in raw state appear unrecognized and complex. Statistical

processors are used this complex data into some significant understandable form.

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LIMITATIONS OF THE STUDY

The project was successfully completed with certain inherent limitations. These

limitations were:

1) The time of research was short due to which many fact has been left

untouched

2) The Area undertaken in research in Lucknow only. But to do a complete

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. This 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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Data Analysis

&Interpretation

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ANALYSIS AND INTERPRETATION

Q1. Which companies chocolate do you prefer to purchase?

Brand Name Percentage

Cadbury 40

Nestle 35

Amul 25

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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.

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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

Weekly 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.

38

Percentage of consumption

15%

25%

45%

10% 5%

More than one

per day

Daily one

3-4 chocolates

per week

Weekely

Rarely


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Q3. Do you purchase the same chocolate every time?

Answer Percentage

Yes 68

No 32

Percentage

68%

32%

Yes

No

As pie chart shows, 68% of the consumer purchase the same chocolate every time, it

means that mostly consumers are brand loyal.32% of consumers dont purchase the same

chocolate every time.

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Q4. If no, then while switch over to another brand of chocolate then what factor you

consider (tick any one)?

Factors Response Percentage

Price 6 18

Quality 12 38

Brand Name 3 9.5Advt. and Ref. Group 3 9.5

Taste 8 25

Percentage

18%

38%10%9%

25%

Price

Quality

Brand Name

Advt. and Ref.Group

Taste

As shown by the pie chart, 38% of consumers consider Quality as most important

factor while switching over to any other brand of milk chocolate bars, and the second

most preferred factor is Taste

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Q5. Which factor you consider the most while purchasing the chocolate? Please tick

any one.

Consumer's consideration Percentage

Price 16

Taste 48

Brand 18

Packaging 9

Availability 9

Percentage

16%

48%

18%

9% 9%

Price

Taste

Brand

Packaging

Other

48% of the consumer of milk chocolate bars said 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 least interested factor is Packaging and Availability.

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Q6. Which mode of advertisement influence you most to buy a particular

Chocolate? Please tick any one.

Media Percentage

Newspaper 22

Magazine 14

Radio 4

Television 54

Others(hoardings,banner,pamplets etc) 6

Percentage

22%

14%

4%54%

6%

Newspaper

Magazine

Radio

Television

Others(hoardings,b

anner,pamplets etc)

The buying behavior of consumers is also affected by the different type of

advertisements. As shown in the pie chart, the most influencing media is electronic media

i.e. TV, and the second most influencing factor is newspaper.

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Q7. Which reference group influence you most to buy a particular chocolate? Please

tick any one.

Reference Groups Percentage

Friends 55

Family 3

Retailers 1

Celebrity 39

Others 2

Percentage

55

31

39

2 Friends

Family

Retailers

Celebrity

Others

As shown in the pie chart, 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.

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Q8. Whether you check or consider manufacturing and expiry date while buying

any chocolate?

ANSWER Percentage

YES 55

NO 45

Percentage

55%

45% Yes

No

Pie chart says that 55% of the consumer check or consider manufacturing and expiring

date while buying any chocolate. 45% of consumers dont go for that. This should be a

matter of concern

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Q9. How much you are satisfied with the present brand of chocolate which you often

purchase?

Satisfaction Level Percentage

Highly satisfied 27

Satisfied 32

Undecided 21

Dissatisfied 12

Highly dissatisfied 8

Percentage

27%

32%

21%

12%8%

Highlysatisfied

Satisfied

Undecided

Dissatisfied

Highlydissatisfied

About 27%of consumers are highly satisfied with the present brands of Milk chocolate

bars in Bhiwani and 32% are satisfied. if we consider brand wise then milk chocolate barofCadbury is the most preferred brand in Bhiwani which holds 40% of the market

share and after that Nestle has second position with aholding of 35% of the market

share and the least preferred brand from the take brand to make report is Amul with a

holding of 25% of market share.

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Findings

& Conclusion

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FINDINGS & CONCLUSION

The findings of the study of consumer 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 (2

nd

) and last is Amul. Among all these three Cadbury is having the largest marketshare 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.

For 48% of the consumers the most important factor which is considered 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 i.e. TV, and

from reference group friends are at most influencing position.

Quality is the most important factor which consumers consider while switching

over to any other brand of milk chocolate bars.

Consumers of Bhiwani 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 Bhiwani 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.

68% of the consumers are brand loyal.

The buying behavior of consumer for different brands of milk chocolate bars is

affected by various factors like price, taste, packaging, brand etc.55% of the

consumer check or consider manufacturing and expiring date while buying any

chocolate. 45% of consumers dont go for that. This should be a matter of concern.

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SUGGESTIONS

SUGGESTIONS

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A detail study of the Consumers Buying Behavior of Age Group 18-25 For

Milk Chocolates Bars was done. Some important suggestions are as follows:

1. The Indian company AMUL has to review its process so as to gain brand loyalty

of the consumers.

2. The chocolates whose expiry dates goes off should be replaced at once and fresh

stock should be offered.

3. The chocolate companies should think on the matter that why the consumers

switch over to the other brands.

4. The chocolate companies should put more & more emphasis on the taste and

quality of the chocolate so as to gain brand loyalty.

5. As factors other than TV and Newspaper are considered less so companies should

use the print and electronic media for advertisement in large extent.

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Annexure

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Questionnaire

Q1. Which companies chocolate do you prefer to purchase?

Cadbury Amul

Nestle

Q2. What is your pattern of consumption?

More than one per day Daily One

3-4 Chocolate per week weekly

Rarely

Q3. Do you purchase same chocolate every time?

Yes No

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Name of the consumer ____________________________________

Age ____________________________________

Sex ____________________________________

Income ________________________________


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Q4. If no, then while switch over to another brand of chocolate then what factor youconsider? Please tick any one.

Price Quality Brand

Name

Advertisement and Reference group Taste

Q5. Which factor you consider the most while purchasing the chocolate (tick anyone)?

Price Taste

Brand Packaging

Availability

Q6. Which mode of advertisement influence you most to buy a particularChocolate? Please tick any one.

Magazine Newspaper

Radio Television

Other

Q7. Which reference group influence you most to buy a particular chocolate? Please tickany one.

Friends Family

Retailer

Celebrity Other

Q8. Whether you check or consider manufacturing and expiry date while buying

any chocolate?

Yes No

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Q9. How much you are satisfied with the present brand of chocolate which you oftenpurchase?

Highly Satisfied Satisfy

Undecided Dissatisfied

Highly Dissatisfied

Q10. What is your suggestion for the improvement of your preferred chocolate

Brand?

_____________________________________________________

__________

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BIBLOGRAPHY

BOOKS

Marketing Research, Donald T.S

Research Methodology, C.R kothari

Consumer Behaviour, Della A.J

MAGAZINES & JOUNALS

Advertising Express, September 2006,Traditional Mass Media, By

K.Suresh

Business World, November 2006

Business Today, Trends

WEBSITES

www.amul.com

www.nestle.com

www.cadburyindia.com

www.consumerpsychology.com

www.altavist.com

Consumer Behaviour Towards Chocolate

Documents