Analysis of MARS Chocolate's Market in INDIA

BUSINESS RESEARCH METHOD
PROJECT REPORT
ON
“IDENTIFY MARKET POTENTIAL FOR MARS FOREIGN
CHOCOLATES IN INDIA”
SUBMITTED BY
GROUP-5
ASIM KUMAR VERMA - 2010056
FAHAD KHAN - 2010071
GAUTAM BANSAL - 2010075
JAI SHANKAR - 2010083
KISHAN KUMAR - 2010096
NIDHI GUPTA - 2010260
PRATEEK CHATURVEDI - 2010295
INSTITUTE OF MANGEMENT TECHNOLOGY, NAGPUR
1
Introduction
Mars, Incorporated is a worldwide manufacturer of confectionery, pet food and other

food products with US$30 billion in annual sales in 2008, and is ranked as the 5th largest
privately-held company in the United States by Forbes. Headquartered in McLean,
unincorporated Fairfax County, Virginia, USA the company is entirely owned by the
Mars family. Mars operates in six business segments in the U.S.: Chocolate
(Hackettstown, New Jersey), Petcare (Franklin, Tennessee), Wm. Wrigley Jr. Company
(Chicago, Illinois), Food (Los Angeles, California), Drinks (West Chester, Pennsylvania),
and Symbioscience (Rockville, Maryland). Seeing huge potential of the Indian Chocolate
Industry the company is planning to enter into the foreign chocolates market in a big way.
It has its presence in India in the form of candy bars and confectionary. Many Indian
enjoy the foreign chocolates offered by Mars through imports.
2
Imported chocolates are gaining popularity in India especially from the mature and
affluent population despite high prices. An annual growth of 15 percent has been noticed
in the demand for imported chocolates in India with the market size for the overseas
brands estimated to be about Rs35 crore. Business in the unorganized sector is estimated
to be valued at half the business achieved through organized channels.
The objective of this study is to explore the market potential of Mars foreign chocolates
in India. A proportional study of the consumers and non-consumers of foreign chocolates
was conducted to understand the buying behavior of potential customers. Demographic
and psychographic analysis was conducted to segment the market and identify the target
market. Brand wise analysis was conducted, supplemented through secondary research,
to understand the competitive scenario and suggest preliminary positioning strategies to
Mars. The data collected was analyzed to suggest a feasible marketing mix.
The findings indicate that a larger percentage of the people buying foreign chocolates
from India belong to the middle income group as compared to the broader segment of the
more affluent consumers of foreign chocolates who are buying even from abroad. This
indicates that this middle income group segment is currently experiencing a lack of
opportunity to buy foreign chocolates from abroad but has a latent desire to consume
foreign chocolates. Hence this is a very lucrative market segment since foreign
chocolates from a leading brand like Mars will be well received by this group.
75% of the non-consumers are open to the idea of buying foreign chocolates in the future.
This is also a potential market. A very promising segment that is willing to buy foreign
chocolates is the affluent, young professionals with the spending power.
The most popular chocolate categories consumed are milk, fruit and nut, wafer, dark and
truffle chocolates. Taste and brand are the most important attributes that a consumer
looks at while buying chocolates. Pricing is something that Mars needs to be very careful
about as the consumer is value conscious. Also, peculiar about the Indian market is that it
is a land of festivals, especially, during the long gifting season from Dussehra to New
3
Year; Assorted/ Gifting packs of foreign chocolates are becoming increasingly popular.
This is a big opportunity for Mars and it get cash on this consumer mind set shift from
mithai to the contemporary gifts like chocolates. Major consumer dissatisfaction in this
segment is arising from date of expiry, damaged chocolates, lack of both depth and width
in the range available, lack of innovative packaging, and all such problems can be
addressed by Mars very effectively due to already existing distribution muscle in India
and chocolate expertise.
Based on the analysis, it is observed that the market is feasible for Mars to launch foreign
chocolates from a preliminary research perspective.
A second stage research must be carried out to understand the Marketing mix of the top
competition brands that Mars has to take cues from. Also, a detailed study of the
consumer decision making process maybe carried out to supplement the above. All this
will eventually help Mars take its decision on positioning its foreign chocolates as mass
or niche products.
4
Problem Definition
a. Background to the problem/ Rationale for the project
While Mars was unaffected by the price wars that plagued the FMCG industry two years
ago, thanks to its urban consumer focus, it still faced a challenging environment. In
chocolates, the revenues have surged, led by volume growth. Volumes have been robust,
thanks to the launch of products at the Rs 5 price point. This makes it harder for the
company to affect price hikes, without affecting volume growth.
In this backdrop, Mars has had to tread cautiously in raising product price hikes. Input
costs, on the other hand, have been soaring. Prices of green coffee and milk solids, which
account for most of its raw material costs, have been on a firm uptrend over the past year.
It is expected that gradually custom duties for imported chocolates will come down
overall. Probably in the next three to four years, they will be around 20 per cent, and in
seven years they may be nil. So, it is very critical that Mars becomes as competitive as
possible, offering international quality chocolates and become the best in terms of cost
structure and margins. Foreign chocolates, especially as gift packs give opportunities for
higher margins. This will help us not only in gearing up to face competition, but also in
becoming a source for supplies. If, over a period of time, the business climate improves,
then it will be good from the point of view of consumers, domestic producers and
importers. India has a long festive season from dussehra to New Year, special festivals
etc. which can help Mars capitalize by selling foreign chocolates as gift packs.
In the backdrop of this environment, this project aims to identify the market potential,
consumer behavior, appropriate marketing strategies etc. with respect to Mars foreign
chocolates in India.
b. Statement of the problem

Management Problem:
Should Mars start importing its foreign chocolates and sell them in India.
5
Marketing Research Problem:
Is there a market potential for Mars foreign chocolates?
Components:
What can be crudely said about the Market Potential?
Who are our Current and Potential buyers?
What is the Consumer Buying Behavior?
What is the Competitive Scenario?
What would be the right marketing strategy for selling foreign chocolates? What are the
consumer’s wish list vis-à-vis foreign chocolates?
c. Approach to the problem
1. What can be crudely said about the Market Potential?
o Proportional analysis of Consumers and Potential consumers and examining their

consumption frequencies, patterns etc. Analysis of Secondary data
2. Who are our Current and Potential buyers?
o Through Demographic and Psychographic analysis of these buyers.
3. What is the Consumer Buying Behavior?
o Attitude Interests Opinion Analysis (AIO)

o 7Os
Who constitutes the market? Occupants
What does the Market buy? Objects
Why does the Market Buy? Objectives
Who Participates in the Buying? Organizations
How does the Market Buy? Operations
When does the Market Buy? Occasions
Where does the Market buy? Outlets
o
4. What is the Competitive Scenario?
o Brand-wise Analysis through Multi Dimensional Scaling and Secondary

Data Analysis
5. What would be the right marketing strategy for selling foreign chocolates? What are
the consumer’s wish list vis-à-vis foreign chocolates?
6
o Marketing Mix
Product related: Desired features: pref size, packaging etc
Price related: Brand wise price brand study
Place/Distribution related
Promotion related: Media habits to ascertain media mix and media
vehicles
7
Research Design
a) Type of research design: the research design that we have made is a conclusive
research. The information needs were clearly defined and the sample that we have
taken is large. Moreover we need more quantitative analysis for finding out the
basic objectives of sales potential. These findings will be further used by Mars in
their decision making whether to come with their foreign chocolates in India and
which type of chocolates. The research is descriptive as we are trying to find the
market segments and their characteristics, their demographic information, etc.
further it’s a single cross-sectional design as we have taken each sample once
from the target population, which is the person who buys or consumes chocolates.
b) Information Needs: from the problem statement we recognize the information

that would be required to carry out analysis and the decision. The objective is to
find the sales potential for Mars foreign chocolates in India. The information that
we are seeking is as follows:
 Tentative market share of various Indian chocolate brands and foreign chocolate
brands.
 Consumer Buying Behavior where we are looking at three main aspects, which
are
o Triggers for purchase
o Frequency of purchase/consumption
o AIO statements of the consumers and purchasers of chocolates.
o 7 O’s
 Marketing Mix
o Product: the features that a customer is looking at in a chocolate, example
preference, size, packaging, assortment, etc
o Price: we are collecting the information of the kind of price the customer
is most comfortable with and what is his likely price brand for foreign
chocolates.
8
o Place/Distribution: where does the customer purchase the chocolates
mostly and do they influence his selection of chocolate.
o Promotion: Media habits to ascertain media mix and media vehicles
Therefore, this information with the above will enable us to segment the target market
 Brand-wise Analysis: Competition Scenario, as to how the other brands are

performing in the chocolate market.
 What is it that the consumer is looking at when he/ she is buying a chocolate
c) Data collection from secondary sources: the data collected from secondary
sources covered the overall Chocolate Market in India, the Foreign Chocolate
Market in India and data on Mars Chocolates. IndiaStat.com was a major resource
provider. Since data on Foreign Chocolates was not readily available we used
newspaper articles to get a better understanding.
d) Questionnaire development and pretesting
Questionnaire development:
The questionnaire was developed based on the secondary data analysis done as above.
After defining the objectives of the study the questionnaire was developed to meet all
information needs required to conduct analysis and reach conclusions. The questionnaire
was developed in two sets: Consumers and Non-Consumers. Most of the questions were
structured though a few unstructured questions were provided to understand get
qualitative insights.
Pretesting:
A sample of 5 consumers and 10 non-consumers were taken for this study to identify the
flaws in the questionnaire. Here the questionnaire administration was aided and in depth
discussion with the respondent was conducted. The sample population composed of IMI
students.
9
The following problems were seen and hence corrected:
1. Definition of consumers and non-consumers was unclear
The two qualifying questions developed thereafter were–
1. Do you consume chocolates?
2. Do you consume foreign chocolates on a regular basis?
I only have foreign chocolates
I mostly consume foreign chocolates (Out of every 10 chocolates that I
consume, 7 or more are foreign chocolates)
I have equal level of consumption for Foreign and Indian chocolates
(Out of every 10 chocolates that I consume, 4 to 6 are foreign chocolates)
I rarely consume foreign chocolates (Out of every 10 chocolates that I
consume 3 or less are foreign chocolates)
I don’t consume foreign chocolates at all
Here, first chocolate consumers were filtered out and then in the second question
consumers were defined by first and second option and non-consumers be last 3 options.
3. The demographic data questions that were positioned in the beginning of the
questionnaire were repositioned at the end to increase comfort levels and
concentration of the respondent.
4. Question based on Psychographics was introduced.
5. In consumer questionnaire q16 was changed from visual bar rating to a tabular
rating.
6. In consumer questionnaire, Q9 was introduced for a further refined analysis of the
sample population and in non-consumer questionnaire Q8 was introduced.
7. The questionnaire was made more user friendly by introducing boxes for ticking
and the overall visual effect of the questionnaires was worked upon.
8. Wording of certain questions was changed to make them easier to understand.
10
e) Sampling techniques
Overall a sample size of 200 was chosen which would be quite a representative sample
considering the target segment Mars is already looking at.
Overall Proportional Sampling: The Mars India Marketing Department was contacted to
understand the ratio of consumers to non-consumers of foreign chocolates in the current
scenario. Based on this a ration of 4:1(non consumers: consumers) was taken to split the
sample population of 200 into 160 non consumers and 40 consumers.
Simple Random Sampling: Within each category of consumers and non-consumers

simple random sampling was conducted to select respondents.
f) Fieldwork
The Pre-testing was done in the IMI Campus, through aided questionnaire filling and
discussions.
Understanding that the target consumer is most likely the urban, educated consumer, we
conducted Convenient Sampling at MBA colleges, at urban markets like Priyas,
Connaught Place, outside corporate houses, and through Mall intercepts in Gurgaon. The
group was split into two sub groups with 2-3 members each and intercepts were
conducted at the entrances, in the open spaces, and near chocolate shops and vendors.
Motivation needs of the respondent were fulfilled by distributing chocolates as an

incentive to fill the questionnaire.
11
Data Analysis, Observations and Results
A. Analysis of Secondary data
Chocolate Market in India
The chocolates market is estimated at around 33,000 tonnes valued at approximately Rs

8.0 bn. The counter market is estimated at about nearly Rs 2.5 to 3.5 bn and the rest is
made up of chocolate bars. Chocolates make up less than a fourth of the sweet-tooth
products including sugar-boiled confectionery, mints and chewing gums. Sugar
confectionery is by far the largest segment. To push sales, chocolate majors have
been targeting adult audiences. Chocolates are being presented as snack food for the new
target audiences. Another strategy sought was the introduction of smaller editions.
Although the players resorted to very aggressive promotional drives, the overall
penetration levels in 1999 and 2000 did not register any significant increase. Perhaps, the
increases by 5% to 15% in selling prices due to increase in cocoa prices caused the
stagnation.
After the worm controversy in October 2003, there was a meltdown in chocolate sales.
Cadbury India appears to be on a recovery path.
Statistics: Chocolate Market
Demand : Past & Future Market Segmentation

Year th MT Segment Share (%)
2000-01 22.1 2 to 8 years old 16
2001-02 24 8 to 25 years old 53
2002-03 30 25 to 54 years old 22
2003-04 32.7 Over 55 years old 7
2004-05 35.5 North 35
2005-06 38.4 East 12
2006-07 41.3 West 33
Product Variation2007-08 44.2 South 20
Market Growth Rates
1990-91 - 1996-97 6.9%
1996-97 - 2001-02 8.9% Segment Share (%)
2001-02 - 2006-07 11.5% Molded Chocolates 50
2004-05 - 2009-10 7.2% Count line bars 33 12
Sugar panned 13
2009-10 - 2014-15 6.0% Choco panned 4

7.8
Sensitivity Coefficient
%
Yr. 2006
Leading Players
While Cadbury leads in both the segments of the chocolates market, Nestle is the other
major player. Amul and Campco (producing for Amul) have, however, managed to
corner significant Amul Others
8% 2%
shares of the market.
Nestle
Cadbury has actually 22%
become the generic

name for chocolates
Cadbury's
in India. Cadbury 68%
with its Dairy Milk,
Five Star, Milk Treat,
Eclairs, Golden, is ruling the roost. It proposed to introduce a host of its global offerings
like Flake, Timeout, Wispa, Caramel, Fuse and Cherry Ripe into the Indian market.
Cadbury dominates the chocolate segment with a share of around 70%. In chocolate-
based drinks, it claims nearly 50% of the market. Cadbury India's market share in cocoa-
based products is 35%, with Dairy Milk brand alone accounting for 29%. Perk and Five
13
Star account for another 20%. Cadbury derives 76% of its revenues from chocolates and
other confectionery sales.
Foreign Chocolate Market
Imported chocolates are gaining popularity in India especially from the mature and
affluent population despite high prices. Indians do not prefer dark bitter chocolates but
these have found favor with expats and foreigners. Five-star kitchens are also demanding
chocolates of the cooking variety like Lindt Couverture and Belgian Calibaut as
chocolate mousse and soufflés are becoming popular.
An annual growth of 15 percent has been noticed in the demand for imported chocolates
in India with the market size for the overseas brands estimated to be about Rs35 crore.
Business in the unorganized sector is estimated to be valued at half the business achieved
through organized channels.
Many foreign chocolates brands are flood Indian metropolitan cities with the
commencement of the festive season. They are Swiss brands Ferraro Rocher, Fox's and
Lindt and Australian brands Walter Heindl and Macadamia. Sales of officially imported
chocolates are high during the
festive season despite their high
prices. MB International Private
Limited is an exclusive
distributor for Walter Heindl and
Macadamia and expects to realise
a turnover of Rs1.5 crore from
Walter Heindl brand chocolates
during Oct-Jan 2001.
Indian chocolate companies Cadbury India and Mars India have observed that their net
profits were not affected by foreign chocolate brands. The latest Exim policy has
14
provided means for foreign brands like Hershey, Lindt and Quality Macintosh to enter the
country and Cadbury is faced with the task of maintaining its marketing share.
Indian shops are now selling more and more imported food products. Droste of Holland
has introduced 22 varieties of chocolates in various pack sizes. Lindt of Switzerland is
offering nearly 45 varieties of chocolates throughout the country. Customers in the
country now have a wide range of quality products to choose from. Due to the high
import duty of there is a growing grey market in these products.
Nestle India Ltd (NIL) had imported two brands, Quality Street and After Eight, into
India in 1997. As of now, the 40 percent import duty on the imported chocolates is
making it uncompetitive. Cadbury's Overtures, a premium priced brand has not
penetrated the market in volumes sale.
B. Analysis of Primary Data
B1. Market Potential Analysis
Mars when planning to come with its foreign chocolates in India should have a fair idea
of the market potential or the possible sales volume that can be achieved in the market.
For the above objective we have tried to calculate the market potential for Mars. Lets
look at the cross tab below:
For Consumers:
15
often u consume chocolates - foreign chocolates
* how many choclates u buy at a go
Crosstabulation
how many choclates u buy at a go

Single 2-3 4-5 Gift/Assorted Total
often u consume More than once a week Count 3 6 9
chocolates - foreign % within often u
chocolates consume chocolates 33.3% 66.7% 100.0%
- foreign chocolates
Once a week Count 1 4 2 4 11
% within often u
consume chocolates 9.1% 36.4% 18.2% 36.4% 100.0%
Once a fortnight Count 2 1 3
% within often u
consume chocolates 66.7% 33.3% 100.0%
Once a month Count 3 3 3 9
% within often u
consume chocolates 33.3% 33.3% 33.3% 100.0%
Special Occasion Count 8 2 6 16
% within often u
consume chocolates 50.0% 12.5% 37.5% 100.0%
Total Count 12 14 2 20 48
% within often u
consume chocolates 25.0% 29.2% 4.2% 41.7% 100.0%
We have taken a conservative aspect, if a respondent is consuming more than 1 chocolate

per week then we have taken 2 chocolates per week. For special occasions we have
considered about 4 chocolates in a year.
The respondents who buy 2-3 and 4-5 units bought we have taken mean value and for gift
packs we have taken 5 chocolate units.
Using the above assumptions we have multiplied the frequency with number of units
bought on a yearly basis and added for all the respondents interested in buying foreign
chocolates.
Using these assumptions, market potential comes out to be 6718 chocolates per 50
consumers, which can be an upper limit for Mars.
Therefore if we see broadly Mars has a market potential of 6718 chocolates yearly
per 50 consumers
16
This shows that Mars has a huge market potential for its foreign chocolates
Limitations:
 The consumers may use the Mars foreign chocolates as a substitute and not really
switch from their favorite brand.
 Respondents may not be interested in Mars brand at all. The study is just a broad
figure on an optimistic note.
B2. Consumer decision making Process
7Os Analysis
1.Who participates in the buying? Organizations
Consumer Media Habits:
17
how did u come to know - in-store
Cumulative
Frequency Percent Valid Percent Percent
Valid No 15 30.0 31.9 31.9
Yes 32 64.0 68.1 100.0
Total 47 94.0 100.0
Missing 9 3 6.0
Total 50 100.0
how did u come to know - WOM
Cumulative
Valid No 14 28.0 29.2 29.2
Yes 34 68.0 70.8 100.0
Total 48 96.0 100.0
Missing 9 2 4.0
Total 50 100.0
how did u come to know - magazines
Cumulative
Valid No 37 74.0 77.1 77.1
Yes 11 22.0 22.9 100.0
Total 48 96.0 100.0
Missing 9 2 4.0
Total 50 100.0
These are the three main media vehicles to create awareness about foreign chocolates
presently. Where in two of them are most effective which are word of mouth and the in
store display.
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Occupation
* how did u come to know - WOM
* Gender
Crosstabulation
how did u come to

Gender know - WOM
No Yes Total
Male Occupation Student Count 7 11 18
% within Occupation 38.9% 61.1% 100.0%
Service Count 1 3 4
Professional Count 2 2
% within Occupation 100.0% 100.0%
Total Count 8 16 24
Female Occupation Student Count 2 12 14
Service Count 1 1
Professional Count 2 3 5
Housewife Count 2 1 3
Total Count 6 17 23
The cross tab shows that the females rely more on WOM but when they are working
somewhere whereas house wives do not rely much on WOM, probably because they are
not constantly interacting with their peer group.
Monthly household Income
* how did u come to know - in-store
Crosstabulation
how did u come to

know - in-store
No Yes Total
Monthly household Under 20,000 Count 1 2 3
Income % within Monthly
33.3% 66.7% 100.0%
household Income
20,000-50,000 Count 6 10 16
% within Monthly
37.5% 62.5% 100.0%
household Income
50,000and above Count 8 19 27
% within Monthly
29.6% 70.4% 100.0%
household Income
Total Count 15 31 46
% within Monthly
32.6% 67.4% 100.0%
household Income
19
* how did u come to know - in-store
* like to try new products
Crosstabulation
how did u come to

like to try new products know - in-store
No Yes Total
Completely Agree Monthly household Under 20,000 Count 1 1
100.0% 100.0%
household Income
20,000-50,000 Count 1 1
% within Monthly
100.0% 100.0%
household Income
% within Monthly
27.3% 72.7% 100.0%
household Income
Total Count 4 9 13
% within Monthly
30.8% 69.2% 100.0%
household Income
Agree Monthly household 20,000-50,000 Count 4 6 10
40.0% 60.0% 100.0%
household Income
% within Monthly
25.0% 75.0% 100.0%
household Income
Total Count 7 15 22
% within Monthly
31.8% 68.2% 100.0%
household Income
Neutral Monthly household Under 20,000 Count 2 2
100.0% 100.0%
household Income
20,000-50,000 Count 1 2 3
% within Monthly
33.3% 66.7% 100.0%
household Income
% within Monthly
50.0% 50.0% 100.0%
household Income
Total Count 3 6 9
% within Monthly
33.3% 66.7% 100.0%
household Income
Disagree Monthly household 20,000-50,000 Count 1 1
100.0% 100.0%
household Income
Total Count 1 1
% within Monthly
100.0% 100.0%
household Income
We know that a large number of consumers are from the segment with monthly
household income greater than 20K. Therefore the in store display is very important for
foreign chocolates and they should be attractive so that the people get attracted to
purchase them. Since the advertising for foreign chocolates has been close to nil therefore
the awareness through this channel is low but if advertising is done on television then it
can create awareness fast as compared to WOM which is an important channel here but is
slower. Also advertising in magazines can be a good medium.
20
2. How does the market buy? Operations
Consumer: the frequency and quantity of purchase for them is
Age
* often u consume chocolates
Crosstabulation
often u consume chocolates

More than Once a Special
once a week Once a week fortnight Once a month Occasion Total
Age 21-35yrs Count 18 9 8 1 4 40
% within Age 45.0% 22.5% 20.0% 2.5% 10.0% 100.0%
36-50yrs Count 1 3 2 1 1 8
% within Age 12.5% 37.5% 25.0% 12.5% 12.5% 100.0%
51 and above Count 1 1
% within Age 100.0% 100.0%
Total Count 19 12 11 2 5 49
% within Age 38.8% 24.5% 22.4% 4.1% 10.2% 100.0%
Occupation
Crosstabulation

Occupation Student Count 16 7 7 3 33
% within Occupation 48.5% 21.2% 21.2% 9.1% 100.0%
Service Count 3 1 1 5
% within Occupation 60.0% 20.0% 20.0% 100.0%
Professional Count 3 1 1 1 1 7
% within Occupation 42.9% 14.3% 14.3% 14.3% 14.3% 100.0%
Housewife Count 2 1 3
Other Count 1 1
Total Count 19 12 11 2 5 49
% within Occupation 38.8% 24.5% 22.4% 4.1% 10.2% 100.0%
21
Crosstabulation

33.3% 66.7% 100.0%
household Income
20,000-50,000 Count 7 4 2 1 2 16
% within Monthly
43.8% 25.0% 12.5% 6.3% 12.5% 100.0%
household Income
50,000and above Count 12 7 9 1 1 30
% within Monthly
40.0% 23.3% 30.0% 3.3% 3.3% 100.0%
household Income
Total Count 19 12 11 2 5 49
% within Monthly
38.8% 24.5% 22.4% 4.1% 10.2% 100.0%
household Income
The frequency of consumption is the highest amongst the younger age group which is 21-
35 years and amongst the students and professionals. Similarly the higher income groups
the higher is the frequency of consumption of foreign chocolates. Since the prices of
foreign chocolates are higher therefore with increasing incomes the frequency of
consumption is going up.
Occupation
Crosstabulation

Occupation Student Count 7 9 1 15 32
Service Count 2 1 2 5
% within Occupation 40.0% 20.0% 40.0% 100.0%
Professional Count 2 5 7
Housewife Count 3 3
With rising disposable incomes the number of units bought at a go; go up. But the
number of gift/ assorted packs remains same across various occupations.
The frequency of consumption and quantity bought at a go for Consumers is:
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Crosstabulation

often u More than once a week Count 1 11 8 20
consume % within often u
chocolates 5.0% 55.0% 40.0% 100.0%
consume chocolates
Once a week Count 3 1 2 4 10
% within often u
30.0% 10.0% 20.0% 40.0% 100.0%
consume chocolates
Once a fortnight Count 6 1 4 11
% within often u
54.5% 9.1% 36.4% 100.0%
consume chocolates
Once a month Count 1 1 2
% within often u
50.0% 50.0% 100.0%
consume chocolates
Special Occasion Count 1 1 3 5
% within often u
20.0% 20.0% 60.0% 100.0%
consume chocolates
% within often u
25.0% 29.2% 4.2% 41.7% 100.0%
consume chocolates
Here we notice that the total quantity of consumption is more compared to the non
consumers. The consumers who have foreign chocolates more than once a week buy
about 2-3 units mostly followed by gifting packs or assorted packs. But the consumers
who have fewer chocolates also buy lower quantity a trend similar to that of non
consumers. But a contrasting trend is that most of the consumers buy gift/ assorted packs
maybe to gift or even enjoy more variety through a package. The ones who have
chocolates on special occasions usually buy assorted chocolates to get the most from a
package.
The preferences of attributes for consumers are:
Attribute Score Attribute Score
Assortment 5.48 Packaging 6.08
Availability 5.28 Price 4.46
Brand 3.98 Softness/ Texture 4.34
Pack Size 5.72 Taste 2.12
The score is out of 8. Here also the most important attribute is taste followed by brand,
softness and price.
3. When does the market buy? Occasion
23
The consumers buy foreign chocolates for below reasons:
Reason Percentag Reason Percentage
e
Self Consumption 93.75% Gifting 79.17%
Festivals 18.75% Baking Food Ingredient 6.25%
In lieu of sweets/ desserts 10.42% Anytime snack 20.83%
Special Occasion 37.50%
Here also the foreign chocolates are primarily bought for self consumption followed by
gifting, special occasion and anytime snack.
foreign chocolates make good gifts

* Pupose of buying - gifting
Crosstabulation
Pupose of buying -
gifting
No Yes Total
foreign Completely Agree Count 1 13 14
chocolates % within foreign
make good chocolates 7.1% 92.9% 100.0%
gifts make good gifts
Agree Count 5 20 25
% within foreign
chocolates 20.0% 80.0% 100.0%
make good gifts
Neutral Count 2 2
% within foreign
chocolates 100.0% 100.0%
make good gifts
Disagree Count 1 2 3
% within foreign
chocolates 33.3% 66.7% 100.0%
make good gifts
Completely Disagree Count 1 1 2
% within foreign
chocolates 50.0% 50.0% 100.0%
make good gifts
% within foreign
chocolates 21.7% 78.3% 100.0%
make good gifts
T
he respondents who agree to the statement that “foreign chocolates make good gifts” buy
foreign chocolates a lot for gifting. Infact, even the consumers who disagree buy a lot of
foreign chocolates for gifting.
24
Therefore, the main occasions for buying the foreign and Indian chocolates are for
gifting, during festivals as gifts and on special occasion else both Indian and foreign
chocolates are mainly used for self consumption.
4. Where does the market buy? Outlets
Source Percentag Source Percentage

e
Retail Shops, India 60.00% Bakeries/ coffee shops, India 24.00%
Duty free shops 22.00% During Foreign Trips 32.00%
Friends and relatives abroad 36.00% Gifts 64.00%
Never buy get as gifts only 4.00% Others 2.00%
We see that the respondents get the chocolates mainly as gifts followed by buying from
retail shops, friends and relatives abroad and during foreign trips.

* where do u get foreign choclates - buy from retail shops
Crosstabulation
where do u get foreign

choclates - buy from
retail shops
No Yes Total
Monthly household Under 20,000 Count 3 3
100.0% 100.0%
household Income
20,000-50,000 Count 5 11 16
% within Monthly
31.3% 68.8% 100.0%
household Income
% within Monthly
40.0% 60.0% 100.0%
household Income
% within Monthly
40.8% 59.2% 100.0%
household Income
25
* where do u get foreign choclates - get as gifts
Crosstabulation

choclates - get as gifts
No Yes Total
66.7% 33.3% 100.0%
household Income
20,000-50,000 Count 9 7 16
% within Monthly
56.3% 43.8% 100.0%
household Income
% within Monthly
23.3% 76.7% 100.0%
household Income
% within Monthly
36.7% 63.3% 100.0%
household Income

* where do u get foreign choclates - buy during foreign trips
Crosstabulation

choclates - buy during
foreign trips
No Yes Total
Monthly household Under 20,000 Count 3 3
100.0% 100.0%
household Income
20,000-50,000 Count 14 2 16
% within Monthly
87.5% 12.5% 100.0%
household Income
% within Monthly
53.3% 46.7% 100.0%
household Income
% within Monthly
67.3% 32.7% 100.0%
household Income
Gifting of foreign chocolates is more prevalent amongst the higher income groups with a
monthly household income above 20K. The income group from 20K to 50K prefers to
buy foreign chocolates from the retail stores in India. The households with income more
than 50K prefer to buy foreign chocolates during their trip abroad.
5.Who constitutes the market?
26
This was analyzed by looking at the consumers. The respondents among the consumers,
the respondents who are either already buying from India are open to the idea of buying
in the future are the potential consumers. Analyzing their demographics gives us the
potential market segment and the consumer demographic profile.Also analyzed are the
consumers who are not going to buy foreign chocolates from India. The reasons for the
same have been analyzed later in the qualitative analysis.
Analyzing the consumer of foreign chocolates:
 Demographic analysis of the consumers of foreign chocolates:
Age
Frequency Percent Valid Cumulative
Percent Percent
Valid 21-35yrs 40 80.0 81.6 81.6
36-50yrs 8 16.0 16.3 98.0
51 and above 1 2.0 2.0 100.0
Total 49 98.0 100.0
Missing 9 1 2.0
Total 50 100.0
Gender
Percent Percent
Valid Male 26 52.0 53.1 53.1
Female 23 46.0 46.9 100.0
Total 49 98.0 100.0
Missing 9 1 2.0
Total 50 100.0

Frequency Percent Valid Percent Cumulative Percent
Valid Under 20,000 3 6.0 6.1 6.1
27
20,000-50,000 16 32.0 32.7 38.8
50,000and above 30 60.0 61.2 100.0
Total 49 98.0 100.0
Missing 9 1 2.0
Total 50 100.0
Education
Valid Less than 3 6.0 6.1 6.1

graduation
Graduate 29 58.0 59.2 65.3
Postgraduat 17 34.0 34.7 100.0

e and above
Total 49 98.0 100.0
Missing 9 1 2.0
Total 50 100.0
Occupation
Valid Student 33 66.0 67.3 67.3
Service 5 10.0 10.2 77.6
Professional7 14.0 14.3 91.8
Housewife 3 6.0 6.1 98.0
Other 1 2.0 2.0 100.0
Total 49 98.0 100.0
Missing 9 1 2.0
Total 50 100.0
Based on the above tables, the profile of a typical consumer of foreign chocolates in India
is as follows:
28
The consumer is a man/ woman aged between 21-35 years. She/he has household
monthly income in excess of Rs.50,000. The person is at least a graduate or above. One
limitation of the questionnaire is that the number of students interviewed is
disproportionately high. Hence from this particular sample it appears that most of the
consumers of foreign chocolates are students which may be misleading.
 Demographic analysis of the consumers of foreign chocolates who are already

buying foreign chocolates from India:
People buying foreign chocolates from retail shops in India

Percent Percent
Valid No 20 40.0 40.0 40.0
Yes 30 60.0 60.0 100.0
Total 50 100.0 100.0
People buying foreign chocolates from bakeries in India

Percent Percent
Valid No 38 76.0 76.0 76.0
Yes 12 24.0 24.0 100.0
Total 50 100.0 100.0
35 out of 50 (70%) of the consumers of foreign chocolates are buying foreign

chocolates from India (either retail shops or bakeries). 30% are not currently buying
from India. This shows that a market for foreign chocolates exists in India as well.
Age
Percent Percent
Valid 21-35yrs 28 80.0 82.4 82.4
36-50yrs 6 17.1 17.6 100.0
Total 34 97.1 100.0
Missing 9 1 2.9
Total 35 100.0
29
Gender
Percent Percent
Valid Male 19 54.3 55.9 55.9
Female 15 42.9 44.1 100.0
Total 34 97.1 100.0
Missing 9 1 2.9
Total 35 100.0

Percent Percent
Valid 20,000- 14 40.0 41.2 41.2
50,000
50,000and 20 57.1 58.8 100.0
above
Total 34 97.1 100.0
Missing 9 1 2.9
Total 35 100.0
Education
Percent Percent
Valid Less than 2 5.7 5.9 5.9
graduation
Graduate 22 62.9 64.7 70.6
Postgraduat 10 28.6 29.4 100.0

e and above
Total 34 97.1 100.0
Missing 9 1 2.9
Total 35 100.0
Occupation
Percent Percent
Valid Student 22 62.9 64.7 64.7
30
Service 3 8.6 8.8 73.5
Professional7 20.0 20.6 94.1
Housewife 2 5.7 5.9 100.0
Total 34 97.1 100.0
Missing 9 1 2.9
Total 35 100.0
A consumer who is already buying foreign chocolates from India, is aged between 21-
35years belonging to the middle and upper income groups (Rs.20,000 and above). A
larger percentage of the people buying foreign chocolates from India belong to the
middle income group as compared to the broader segment of consumers of foreign
chocolates. This indicates a lack of opportunity to buy from abroad but a desire to
consume foreign chocolates. Hence this is a very lucrative market segment since foreign
 Analysis of the consumers who are not currently buying from India but are
willing to buy from India in the future:
This suffers from non response error. 60% of the consumers who do not buy foreign
chocolates from India haven’t answered this question indicating that either they are
unsure about whether they want to buy from India or an error in the framing of the
question. Hence this has not been considered while analyzing the market potential.
Analyzing the non-consumer of foreign chocolates:
 Demographic analysis of the non-consumers of foreign chocolates:

Age
Percent Percent
Valid <20 yrs 10 6.7 6.7 6.7
21-35 yrs 115 76.7 76.7 83.3
36-50 17 11.3 11.3 94.7
31
51 and 8 5.3 5.3 100.0
above
Total 150 100.0 100.0
Gender
Percent Percent
Valid Male 75 50.0 50.0 50.0
female 75 50.0 50.0 100.0
Total 150 100.0 100.0

Percent Percent
Valid <20000 7 4.7 4.7 4.7
20001 - 56 37.3 37.6 42.3

50000
50001 and 77 51.3 51.7 94.0
above
NA 9 6.0 6.0 100.0
Total 149 99.3 100.0
Missing 9 1 .7
Total 150 100.0
Education
Percent Percent
Valid <graduation 9 6.0 6.0 6.0
graduate 82 54.7 54.7 60.7
Postgraduat 59 39.3 39.3 100.0

e & above
Total 150 100.0 100.0
Occupation
Percent Percent
32
Valid Student 87 58.0 58.0 58.0
Service 12 8.0 8.0 66.0
Professional 24 16.0 16.0 82.0
Businessman 10 6.7 6.7 88.7
Housewife 16 10.7 10.7 99.3
Other 1 .7 .7 100.0
Total 150 100.0 100.0
A typical non consumer of foreign chocolates is aged between 21-35years. Nearly half
the respondent base had monthly household income less than Rs.50,000. This shows that
this segment might be relatively less affluent and more price conscious. Hence in order to
attract this segment it is essential to look at the pricing policies. The non consumer has
most likely done her/his graduation. Professionals and housewives are also an important
segment among the non-consumers besides the students.
5. What does the market buy?

The consumers have been analyzed to find out which type of chocolates do they buy and
the brands that they prefer. This also gives us an insight into which is the most popular
type of chocolate amongst the consumers. This is later supplemented by what they look
for in a chocolate in terms of the importance of various attributes.
Analyzing the consumers of foreign chocolates:
Type of Chocolate Frequency

Milk chocolate 23
Truffle (with smooth center) 19
Dark chocolate 25
Fruit and nut 23
Exotic flavours e.g.Mint 14
Wafer 20
Caramel 16
Liquor 14
Others 3
No Preference/ Any 0
33
The most popular chocolate categories are milk, fruit and nut, wafer, dark and truffle. The
frequency of consumption has been analysed below for the people who consume these
chocolates.
Milk Chocolate by Recoded frequency of consumption of Milk chocolate

Recoded frequency of Total
consumption_Milk chocolate
Heavy Medium Light
Milk Chocolate No Count 1 1 12 14
% within type 7.1% 7.1% 85.7% 100.0%

of chocolate -
Milk
Chocolate
Yes Count 15 6 21
% within type 71.4% 28.6% 100.0%

of chocolate -
Milk
Chocolate
Total Count 16 1 18 35
% within type 45.7% 2.9% 51.4% 100.0%

of chocolate -
Milk
Chocolate
Majority of the consumers of milk chocolates are heavy users, consuming the particular
chocolate at least once a week or more.
Truffle Chocolate by Recoded frequency of consumption of Truffle chocolate

Heavy Medium Light
Truffle No Count 3 3 5 11
% within 27.3% 27.3% 45.5% 100.0%

type of
chocolate -
truffle
Yes Count 12 3 3 18
% within 66.7% 16.7% 16.7% 100.0%

type of
chocolate -
truffle
% within51.7% 20.7% 27.6% 100.0%
34
type of
chocolate -
truffle
Majority (66.7%) of the consumers of truffle are heavy users, consuming the particular
chocolate at least once a week or more.
Fruit and Nut by Recoded frequency of consumption of fruit and nut chocolate
Heavy Medium Light
Fruit and nut No Count 2 1 7 10
% within 20.0% 10.0% 70.0% 100.0%

type of
chocolate -
fruit and nut
Yes Count 10 5 6 21
% within 47.6% 23.8% 28.6% 100.0%

type of
chocolate -
fruit and nut
% within 38.7% 19.4% 41.9% 100.0%

type of
chocolate -
fruit and nut
Less than 50% of the consumers of fruit and nut are heavy consumers. So even though
this category of chocolates is popular with most people liking it, it is not consumed that
frequently. This could partly be attributed to the generally higher prices of this category
of chocolates.
Dark Chocolate by Recoded frequency of consumption of Dark Chocolate

Heavy Medium Light
Dark No Count 1 1 7 9
chocolate
% within 11.1% 11.1% 77.8% 100.0%
dark
chocolate
Yes Count 12 4 9 25
% within 48.0% 16.0% 36.0% 100.0%

dark
35
chocolate
% within 38.2% 14.7% 47.1% 100.0%

dark
chocolate
Again for this category less than 50% of the consumers are heavy consumers. So even
though this category of chocolates is popular with most people liking it, it is not
consumed that frequently. This could partly be attributed to the generally higher prices
and also lesser availability of this category of chocolates.
Wafer Chocolate by Recoded frequency of consumption of Wafer Chocolate

Heavy Medium Light
Wafer No Count 4 4 8 16
% within 25.0% 25.0% 50.0% 100.0%

wafer
Yes Count 11 3 3 17
% within 64.7% 17.6% 17.6% 100.0%

wafer
% within 45.5% 21.2% 33.3% 100.0%

wafer
A substantial (64.7%) proportion of the consumers of wafer chocolates are heavy

consumers. This can be attributed to greater variety, availability and lower price points.
The analysis of the chocolate category consumed the most and the frequency of
consumption for the chosen categories, reveals a drawback of the questionnaire where the
consumer has not just given the chocolates that he consumes the most but actually the
chocolates he likes/ prefers the most. This is a limitation of the questionnaire which is
leading to slight discrepancies witnessed in case of dark chocolates and fruit and nut
Type of chocolate Frequency (out of 50)

Toblerone 38
Mars 36
Hersheys 32
Snickers 27
Bounty 14
Lindt 18
After 8 20
M&M 15
36
Ferro Roche 40
Others 6
The brands that are consumed the most are Toblerone, Mars, Hersheys and Ferro Roche.
These brands have the easiest recall and greatest visibility. The reasons as to why these
brands are bought have been analyzed in the subsequent part.
6. Why does the market buy?

This takes a look at the reasons for chocolate purchase for both consumers. This has been
analyzed by looking at the ranks that have been given by the various consumers to the
various attributes.
Analyzing the consumers:
Taste 1.83
Brand 3.77
Softness / texture 4.15
Price 4.27
Availability 5.13
Assortment 5.33
Packsize 5.58
Packaging 5.96
Taste and brand emerged to be the most important attributes among the consumers. But
taste has received a substantially higher rating in case of consumers reflecting a greater
importance attached to taste in this segment of consumers of foreign chocolates.
For the consumers of foreign chocolates the performance of the most popular brands on
the various attributes were studied: Ferro Roche, Toblerone, Mars
toblerone – assortment 2.56
toblerone – availability 1.95
toblerone – brand 1.52

toblerone – packsize 1.93
toblerone – packaging 1.93
toblerone – price 2.21

toblerone – softness 2.07
Toblerone
37
toblerone – taste 1.62
mars – assortment 2.73
mars – availability 2.19
mars – brand 1.93
mars – packsize 2.14
mars – packaging 2.38
mars – price 2.4
mars – softness 1.76
Mars mars – taste 1.62
Ferro roche – assortment 2.36
ferro roche – availability 1.98
ferro roche – brand 1.74

ferro roche – packsize 1.98
Ferro roche – packaging 1.6
ferro roche – price 2.67

ferro roche – softness 1.74
Ferro
Roche ferro roche – taste 1.47
Toblerone has scored the maximum on brand and taste and performed the worse on
assortment. Hence the reasons for popularity amongst the customer who looks for a good
brand and great taste and ranks assortment as the least important attribute. The same is
true for Mars. While the above is true for Ferro Roche as well, it performs really well on
another attribute which is the packaging. Ferro Roche is popular for its sleek packaging
for gifting and which the customers appreciate and adds to its brand value
C. Attitude Interests Opinion Analysis (AIO)
The analysis has been done in 2 ways :

On the whole respondents group
First the AIO analysis is done on whole of respondents group. The Psychographic
statements, given in Q. No 19 of consumers Questionnaire and, is taken into
consideration for this analysis. First, a factor analysis is run on these segments to reduce
the data and to find out 2-3 dominant factors which sum up the psychographic statements.
After that factor scores are saved in respective data sheets and a cluster analysis is done
38
to segment the respondents. After that cluster wise demographic analysis is done to
identify the clusters and the respondent profiles in respective clusters.
All Consumers of Foreign Chocolates

Four factors emerge out after running the factor analysis. These four factors explain 65%
of the total variance. The rotated component matrix of the factor analysis is as shown
The four factors are:
a
Rotated Com ponent Matrix
Component
1 2 3 4
prefer eating on festive
.242 .575 -3.49E-02 -5.26E-02
occasions
like buying foreign brands -.540 7.023E-02 .636 2.044E-02
buying chocolates is
.856 .233 8.724E-02 -3.45E-02
was te
foreign chocolates are
.806 -.174 -9.17E-02 -4.98E-02
expensive
foreign chocolates make
-3.40E-02 2.499E-02 .113 .853
good gifts
indian are better in taste .310 .378 -.551 .354
consume chocolates
-2.05E-02 .597 -4.25E-02 .234
oncaasionally
I buy only indian
.578 .135 3.236E-02 -.608
chocolates
foreign choclates have
.278 7.256E-03 .818 .213
high quality standards
like to try new products -.229 .720 4.135E-02 -.264
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 8 iterations.
1. Chocolates are waste of money

2. Like to try new products
3. Foreign Products have good quality
4. Foreign chocolates are good gifts
The cluster analysis shows that there are only two dominant clusters which are emerging.
Running a 2-cluster solution on these factor scores gives us following clusters:
39
Final Cluster Centers
Clus ter
1 2
REGR fac tor s c ore
-1.08705 .12640
1 for analy s is 1
-1.00687 .11708
2 for analy s is 1
-1.42894 .16616
3 for analy s is 1
.62819 -.07304
4 for analy s is 1
Number of Cases in each Cluster

Cluster 1 5.000
2 43.000
Valid 48.000
Missing 2.000
Cluster 1
The dominant factor which is in this cluster is factor 4 and this cluster has only 5
members. That means this cluster believes in that foreign chocolates are good gifts and
but they themselves will not buy them. They will still prefer buying Indian chocolates.
The demographic analyses of this cluster show us that all of the respondents lie within
21-35 yrs age group. Majority (4 out of 5) are males and students who are graduate and
having a MHI of Rs 50,000 and above. Thus this justifies for their belief that foreign
chocolates make good gifts.
Cluster 2
This cluster has 43 members and the dominant factors which emerge out in this cluster
are factors 1, 2 and 3. That means they believe in trying out new products and think they
are of good quality but on the other hand think that foreign chocolates are expensive and
buying them is a waste of money. The demographic analyses of this cluster show that
majority of them are students in the age group of 21-35 yrs and there is mix of both males
and females. But here in this case majority of them lies in 20,000 – 50,000 MHI category
40
which explains there ambitions of liking foreign products abut still believing that foreign
chocolates are expensive and waste of money. Perhaps they want to spend there money
on some other products.
D. Qualitative Data Analysis
The questionnaire that was designed contained the following open-ended question :
Are you open to buying foreign chocolates in the future?
If Yes … Why?
If No…..Why?
The main objective behind this objective was to find out what the consumers wishlist is
and what would actually trigger his purchase. The quantitative data is indicative of the
purchase and non-purchase scenario. However, on analyzing the responses, the following
picture emerged…
(a) If Yes, why……………
Why would you be open to buying Foreign

Chocolates
Perception
2% Gifting
Quality
Texture 1% Availability
7%
1% 10%
Affordable
11%
Experimenting
9% taste
Variety 43%
16%
Some respondents filled in this question with their comments. Based on these comments,
the above pie-chart was drawn.
41
 The four predominant factors that are reasons for consumers being open to the
purchase of foreign chocolates are:
o Taste: Foreign chocolates taste better than Indian chocolates
o Variety: Foreign chocolates have a greater variety of flavours than Indian
chocolates
o Affordability: Expectation of foreign chocolates being more affordable
o Availability: Expectation of better availability.
Inferences
 It is evident that the consumer would go ahead and buy the foreign chocolates
because of the taste factor primarily.
 Another factor that lures them is the variety that foreign chocolates have.
 Following this is the availability and affordability factors, which are supported
by10% and 11% of the respondents.
Demographics:
 Income: With regard to the four predominant factors , we see that all the
respondents fall within the income group of 20000 to 50000 and 50,000 and
above. There seems to be no difference in the income groups of respondents
supporting a specific factor.
42
Income Groups
20
18
16
14 Inc -a
12 Inc-b
10
8 Inc-c
6
4 Inc-d
2
0
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 Gender : With regards to gender, the data shows that women are more
demanding than men on almost all parameters!!
Gender
25
20
15 Male
10 Female
0
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 Occupation : The dominating group is definitely the ‘Student’ group on all

parameters.
43
Occupation
30
25 Housewife
20 Businessman
15 Service
10 Professional
5 Student
0
le
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(b) If NO, why….

The next part of the question was on why the respondents would not be open to buying
foreign chocolates..
The following factors were the primary reasons for non-purchase by the respondents.
Total
Taste is poor
18%
Low personal
Consumption Expensive
4% 46%
Satisfied with
Indian
Chocolates
32%
Inferences:
 Expensive : The respondents feel that these chocolates will continue to be
expensive
44
 Satisfied with Indian Chocolates : The respondents feel that there is no reason
to buy foreign chocolates since Indian chocolates are good enough.
 Taste is poor : The respondents are of the opinion that Indian chocolates taste a
lot better than the foreign ones.
Demographics :
Gender : Here, too it is seen that it is the women who are more apprehensive about
buying foreign chocolates.
Gender
8
7
6
5
Male
4
3 Female
2
1
0
Expensive Satisfied with Low personal Taste is poor
Indian Consumption
Chocolates
Occupation :
Occupation
7
6
Housewife
5
Businessman
4
Service
3
Professional
2
Student
1
0
Expensive Satisfied with Low personal Taste is poor
Indian Consumption
Chocolates
It is evident that students are a dominating group here as well and this has obvious
relevance as well known to common perception , especially when it comes to chocolates
45
being expensive. Students also seem to be the ones who are rather touchy about the taste
factor as well.
What They Said…

 “Foreign Chocolates are softer and tastier than Indian ones.”
 “More Foreign flavours must be introduced..”
 “Reduce the price”
 “Bring chocolate candies here…”
 “Foreign chocolates in stores are inferior in taste than those bought from
abroad”
 “I believe they (foreign chocolates) are better in quality and will get cheaper..”
 “Must keep a check on prices, must be available and must be in sync with
Indian taste”
 “I’m not sure which chocolate is a foreign one…there should be better
promotion”
 “Current prices don’t justify the value desired.”
Would you buy foreign chocolates from India if a major foreign chocolate brand
started selling them in the country.
If not, why?
This is what they said….
 “Foreign chocolates should be as easily available in India as Dairy milk
is.”
 “Lindt is too expensive…..The chocolates must be in smaller sizes”
 “Price is the only issue , barring which the popularity of these chocolates
would be high”
 “The major consideration is that sometimes the packaging date of foreign
chocolates is old…”
Some key points brought out by the consumers of foreign chocolates are :
46
- They believe that foreign chocolates aren’t as expensive when they
are paid for in Dollars!
- Also, they are skeptical about ease of availability, variety, pricing and
above all , whether the taste would be comparable with the chocolates
available abroad.
47
The Wishlist
From the above analysis it is evident that a bulk of consumers are open to the idea of
buying foreign chocolate.
~What definitely seems to have won them over is the taste factor. This is a key factor
and will probably even determine their decision of re-purchase.
~These consumers are looking for variety and different flavours. This is going to be
quite a lure for them.
~But, then again, price tends to be a restraining factor. For some there is an expectation
of lower prices, while for some others there is a perception that the high prices are a
deterrent to purchase.
~Another perception that must be looked into is that of availability.
~ Promotion is very important. People are unaware of which brands are authetic Foreign
chocolates and they feel that adequate promotion would dispel their fears.
~ There must be a clear communication to the prospective consumers that the chocolates
are authentic and genuine.
~ The respondents attribute a lot of importance to quality and believe that foreign
chocolates are definitely superior on that front. This expectation must be met
consistently.
48
Limitations and caveats
 Consumers haven’t answered q10, which questions them on whether they are
going to buy foreign chocolates from India in the future. There is substantial non
response error as 15 people should have answered this question but only 6 people
have given a response (40%).
 A limitation of the questionnaire is that the number of students interviewed is
disproportionately high. Hence from this particular sample it appears that most of
the consumers of foreign chocolates are students which may be misleading.
 The analysis of the chocolate category consumed the most and the frequency of
consumption for the chosen categories, reveals a drawback of the questionnaire
where the consumer has not just given the chocolates that he consumes the most
but actually the chocolates he likes/ prefers the most. This is a limitation of the
questionnaire which is leading to slight discrepancies witnessed in case of dark
chocolates and fruit and nut
 The questionnaire has not given us data to understand whether the non-
consumers who are ready to buy foreign chocolates , will actually cut-down their
consumption of Indian brands and start consuming foreign brands or whether their
consumption of Indian chocolates will remain unaffected while they increase their
total consumption by adding on foreign chocolates.
 The questionnaire hasn’t been able to find out how the consumer of foreign
chocolates perceives Indian brands vis-à-vis foreign brands. There are a few
qualitative statements to support this, but more quantitative analysis is required.
 The questionnaire has predominantly nominal data, thereby limiting the scope of
analysis.
 Also, the consumers of chocolates haven’t been asked to rank their preferred
brands.The only indicators are the ranks allotted to the brands on various
attributes.
 Finally, we haven’t asked the consumers to explicitly discuss their ideal brand.
The only way we have garnered some information is from the qualitative and
quantitative analysis drawn above.
49
Conclusions and Recommendations
WHO IS MARS’S POTENTIAL AND PROSPECTIVE CONSUMER ?
A larger percentage of the people buying foreign chocolates from India belong to the
middle income group as compared to the broader segment of consumers of foreign
chocolates. This indicates a lack of opportunity to buy from abroad but a desire to
consume foreign chocolates. Hence this is a very lucrative market segment since foreign
A very promising segment that is willing to buy foreign chocolates is the affluent, young
professionals with the spending power.
What They Like!

The most popular chocolate categories are milk, fruit and nut, wafer, dark and truffle
chocolates
Preffered Attributes
Taste and brand emerged to be the most important attributes among the consumers as.
But taste has received a substantially higher rating in case of consumers reflecting a
greater importance attached to taste in this segment of consumers of foreign chocolates.
A cluster analysis done shows the emergence of two clusters which are very lucrative
for Mars. In terms of demographics there is no significant difference since majority of
the respondents are students. However, what emerges very clearly is that:
 the age group of the target group is between 20 to 35 years

 With monthly household incomes of Rs. 50,000 plus for the consumers.
50
It is very essential for Mars to keep in mind PRICE as a factor as this has emerged not
only in the mean scores calculated but also in the qualitative data analysis.
THE MARKETING MIX

By looking at the position of the foreign brands being consumed in India currently,
Mars will need to take cues from the top brands as rated by the consumers on various
parameters.
 Price and Product

In terms of product attributes such as softness, taste, assortment and packsize,
Toblerone wins hands down.
 Availability
Here, too Mars must look into its own distribution of Toblerlone, because despite
being a foreign brand it seems to score well in this aspect.
 Packaging And Branding

The forerunner here is the bright- gold -paper wrapped Ferrero Rocher chocolate.
 Most common Reasons for Purchase

The three key reasons for purchase are :
- Self consumption
- Gifting
- Special occassions
Therefore, Mars must focus on these areas when deciding SKU size and positioning,
considering the fact that it will have an advantage over the current foreign brands.
Currently, it should be noted that only 2 brands have gift packs- Cadburys’ and
Ferrero Rocher
51
 Preferred Pack Type
Respondents prefer foreign chocolates for the purpose of gifting. However, it is also
to be noted that they prefer assorted packs. This is also validated by the qualitative
data analysis as well wherein consumers are looking for variety and believe it is a
parameter where foreign chocolates score over Indian chocolates. Therefore, Mars
must come out with a wide product line ranging from single units for an any-time
snack, to assortment packs for special/gifting occasions.
 Media Habits & Communication

Across segments, the dominant media options that have emerged are :
- Television
- Magazines ( to some extent)
No foreign brands have advertised in India as of now. Whereas, when it comes to
Indian chocolates we see that the awareness is created mainly by TV commercials.
What also gets the consumer thinking is word- of- mouth promotion and in-store
displays.
At this juncture it is important for Mars to avail the benefits of being one of the first
mover. Being an FMCG product, the main media of communication would be TV
followed by print and radio. Mars will have to develop integrated marketing
communication plan.
 Triggers For Purchase and the consumers’ Wishlist

~What definitely seems to have won the consumers over is the taste factor. This is
a key factor and will probably even determine their decision of re-purchase.
~These consumers are looking for variety and different flavours. This is going to
be quite a lure for them.
52
~But, then again, price tends to be a restraining factor. For some there is an
expectation of lower prices, while for some others there is a perception that the high
prices are a deterrent to purchase.
~Another perception that must be looked into is that of difficulty of availability.
~ Promotion is very important. People are unaware of which brands are authetic
Foreign chocolates and they feel that adequate promotion would dispel their fears.
~ There must be a clear communication to the prospective consumers that the

chocolates are authentic and genuine.
~ The respondents attribute a lot of importance to quality and believe that foreign
chocolates are definitely superior on that front. This expectation must be met
consistently.
WHAT WE FEEL….
Based on all the above analysis and recommendations, we are of the opinion that the
market is feasible for Mars to launch foreign chocolates from a preliminary research
perspective.
A second stage research must be carried to out to understand the Marketing mix of
the top competition brands that Mars has to take cues from.
Also, a detailed study of the consumer decision making process maybe carried out to
supplement the above.
All this will eventually help Mars take its decision on positioning its foreign
chocolates as mass or niche products.
53
Bibliography
www.mars.com
IndiaStat.com
Foreign Chocolates Flood Shop Shelves, Business Line. Oct 16, 2001; pg 1
Foreign Chocolates, Juices Crowd Indian Shelves, Business Line. Jul 7, 2001; pg 6
Chocolate Imports, A Sweet Tale, Economic Times. Dec 5, 2002; pg 1
Chocolate Imports Will Make No Dent On Players, Financial Express. Oct 10, 1997; pg 7
Cadbury India, Beverage & Food World. Feb 28, 2006; pg 91
Chocolate Market Gears Up For A Sweet Time, Impact. Mar 6, 2005; pg 7
A Chocolate A Day, Pitch. Dec 15, 2004; pg 60
Sweet Success, USP Age. Nov 30, 2004; pg 44
Cadbury Dairy Milk: Real Taste Of Meetha, Brand Reporter. Aug 15, 2004; pg 30
Hershey To Set Up Own Subsidiary, Economic Times. May 13, 1995; pg 13
What's sweet and what isn't , Business Line, July 22, 2001
Nestle India: Pare exposures Business Line, Aug 15, 2004
54
Exhibits
a. CONSUMER QUESTIONNAIRE
Qualifying Question
1. Do you consume chocolates?
2. Do you consume foreign chocolates on a regular basis?

I only have foreign chocolates
I mostly consume foreign chocolates (Out of every 10 chocolates that I consume, 7 or more
are foreign chocolates)
I have equal level of consumption for Foreign and Indian chocolates
(Out of every 10 chocolates that I consume, 4 to 6 are foreign chocolates)
I rarely consume foreign chocolates (Out of every 10 chocolates that I consume 3 or less are
foreign chocolates)
I don’t consume foreign chocolates at all
Questions:
1. Do you purchase packaged snack food from the market? Yes / No
2. Which are the packaged snack food items that you purchase regularly (at least once a month)
(Tick one or more)
Biscuits/ Cakes Namkeens/ Salted Snacks Chips/ Wafers
Cold Drinks/Juices Ice Creams Sugar Confectionary
Chocolates Others ______________
3. Which of the following packaged snack food items are you most likely to purchase impulsively?
(Tick one or more)
Biscuits/ Cakes Namkeens/ Salted Snacks Chips/ Wafers
Cold Drinks/Juices Ice Creams Sugar Confectionary
Chocolates Others ______________
4. How often do you consume chocolates?

More than once a week Once a week Once in a fortnight
Once a month Only on special occasions
5. What type of chocolates do you consume the most?(Tick one or more)

Milk chocolate Truffle (with smooth center) Dark chocolate
Fruit and nut Exotic flavours e.g.Mint Wafer
Caramel Liquor Others ___________
No preference/ Any
6. Frequency of consumption:
Type of Chocolate More than once a Once a week Once a Fortnight Once a Month Only on special
week occasions
Milk chocolate
Dark chocolate
Truffle (with smooth
center)
Caramel
Fruit and nut
Wafer
55
Exotic flavours
e.g.Mint
Liquor
No Preference/ Any
Others____________
_
7. How often do you consume foreign chocolates? (Tick only one)

More than once a week Once a week Once in a fortnight
Once a month Only on special occasions
8. From where do you get foreign chocolates for consumption? (Tick which ever is applicable)
Buy from retail shops in India
Buy from Bakeries/ Coffee shops in India (including the ones in hotels)
Buy from Duty Free shops at International airports
Buy during foreign trips
Ask friends/ relatives going abroad to buy chocolates for you (pay them)
Get as gifts from people, company etc.
Never buy and only get as gifts
Others______________________
9. (For people who chose don’t buy option in Q.No.8 only)
If you don’t buy foreign chocolates (Answer this question and then move to Question 14)
a. Why don’t you buy foreign chocolates?
Don’t like it that much to spend money on it
I prefer Indian chocolates
Availability is very poor in the country
There isn’t a marked difference in the quality and taste of foreign and Indian
chocolates
They are too expensive
b. If you stop getting foreign chocolates as gifts

Would stop eating foreign chocolates (Move to Question 15)
Would ask people going abroad to get me foreign chocolates (pay them)
Would start buying foreign chocolates either from India or abroad
10. For people who buy foreign chocolates but have never bought them from India,
a. Would you buy foreign chocolates from India if a major foreign chocolate brand started
selling them in the country? Yes/ No
b. If No, Why______________________________________________________________
11. If you buy foreign chocolates, how many foreign chocolates do you buy at a go?
Single unit 2-3 4-5 Gift pack and Assorted packs
12. For what purpose do you buy foreign chocolates?(Tick one or more)
Self consumption
Gifting
Festivals
Baking foods ingredient
In Lieu of sweets/ desserts
Anytime Snack
Special Occasions
56
13. How did you come to know about the foreign chocolates you buy? (Tick one or more)
Newspapers Television Commercials Magazines

Billboards Word of mouth In-store
Others______________________
14. Rank the importance of the following attributes in order of preference while buying foreign
chocolates (1-Most important, 8- Least important)
Attribute Rank
Assortment
Availability
Brand
Pack size
Packaging
Price
Softness/ Texture
Taste
15. Which of the following brands of foreign chocolates do you consume?(Tick one or more)
Toblerone Mars Hersheys
Snickers Bounty Lindt
After 8 M&M Ferro Roche
No brand preference Others______________________
16. Rate each of the following brands for effectiveness on each criteria
(1-Very Good, 2-Good, 3-Neutral, 4-Poor, 5-Very Poor)
Softness/
Assortment Availability Brand Pack size Packaging Price Texture Taste
Toblerone
Mars
Hersheys
Snickers
Ferro Roche
Bounty
Lindt
After 8
M&M
Others
__________
17. Any suggestions/ comments.

.....................................................................................................................................................................
.....................................................................................................................................................................
18. Please rate the following on a scale of 1 to 5

1 = Completely Agree, 2 = Agree, 3 = Neutral, 4 = Disagree, 5 = Completely Disagree
a. I prefer eating/gifting Indian sweets on festive occasions

b. I like buying foreign brands over Indian Brands
c. Buying chocolates is a waste of money
d. Foreign chocolates are unnecessarily expensive
57
e. Foreign chocolates make good gifts
f. Indian chocolates are better in taste than foreign chocolates
g. I consume chocolates only occasionally since they are fattening
h. Since I was in born in India, I should buy only Indian Chocolates
i. I believe that foreign brands have very high quality standards
j. I like to try new products
19. Are you open to buying foreign chocolates in the future?(Tick)

a. If Yes, why_____________________________________________
b. If No, why______________________________________________
20. Age: < 20 yrs 20-35 yrs 35-50 yrs 50 yrs and above
21. Gender: Male Female
22. Monthly Household Income in Rupees

Under 20,000 20,000-50,000 50,000 & Above Not Applicable
23. Education: Less than graduation Graduate Postgraduate &above
24. Occupation (Tick)

Student T Service Professional
Businessman Housewife Other____________
THANK YOU
58
THANK YOU
b. Coding Sheet
Mars Chocolates Coding scheme (Consumers)

QNo Coding Symbol used for
. Variable name Instruction variable name
1 Purchse snack food Yes = 1, No = 0 1
2a type of packaged food purchsed regularly - biscuits/cakes Yes = 1, No = 0 2a
2b type of packaged food purchsed regularly - namkeens Yes = 1, No = 0 2b
2c type of packaged food purchsed regularly- chips Yes = 1, No = 0 2c
2d type of packaged food purchsed regularly- cold drinks Yes = 1, No = 0 2d
2e type of packaged food purchsed regularly- ice creams Yes = 1, No = 0 2e
type of packaged food purchsed regularly- sugar
2f confectionary Yes = 1, No = 0 2f
2g type of packaged food purchsed regularly- chocolates Yes = 1, No = 0 2g
2h type of packaged food purchsed regularly- others Yes = 1, No = 0 2h
type of packaged food purchsed impulsively -
3a biscuits/cakes Yes = 1, No = 0 3a
3b type of packaged food purchsed impulsively - namkeens Yes = 1, No = 0 3b
3c type of packaged food purchsed impulsively- chips Yes = 1, No = 0 3c
3d type of packaged food purchsed impulsively- cold drinks Yes = 1, No = 0 3d
3e type of packaged food purchsed impulsively- ice creams Yes = 1, No = 0 3e
type of packaged food purchsed impulsively- sugar
3f confectionary Yes = 1, No = 0 3f
3g type of packaged food purchsed impulsively- chocolates Yes = 1, No = 0 3g
3h type of packaged food purchsed Impulsively- others Yes = 1, No = 0 3h
>once a week = 1,
once a week = 2,
once a fortnight =
3, once a month =
4, special occasion
4 often u consume chocolates =5 4
5a type of chocolate - Milk Chocolate Yes = 1, No = 0 5a
5b type of chocolate - truffle Yes = 1, No = 0 5b
5c type of chocolate - dark chocolate Yes = 1, No = 0 5c
5d type of chocolate - fruit and nut Yes = 1, No = 0 5d
5e type of chocolate - exotic flavors Yes = 1, No = 0 5e
5f type of chocolate - wafer Yes = 1, No = 0 5f
5g type of chocolate - caramel Yes = 1, No = 0 5g
5h type of chocolate - liquor Yes = 1, No = 0 5h
5i type of chocolate - others Yes = 1, No = 0 5i
5j type of chocolate - any / no pref Yes = 1, No = 0 5j
59
>once a week = 1,
once a week = 2,
once a fortnight =
3, once a month =
4, special occasion
6a frequency of consumption - milk chocolate =5 6a
>once a week = 1,
once a week = 2,
once a fortnight =
3, once a month =
4, special occasion
6b frequency of consumption - dark chocolate =5 6b
>once a week = 1,
once a week = 2,
once a fortnight =
3, once a month =
4, special occasion
6c frequency of consumption - truffle =5 6c
>once a week = 1,
once a week = 2,
once a fortnight =
3, once a month =
4, special occasion
6d frequency of consumption - caramel =5 6d
>once a week = 1,
once a week = 2,
once a fortnight =
3, once a month =
4, special occasion
6e frequency of consumption - fruit and nut =5 6e
>once a week = 1,
once a week = 2,
once a fortnight =
3, once a month =
4, special occasion
6f frequency of consumption - wafer =5 6f
>once a week = 1,
once a week = 2,
once a fortnight =
3, once a month =
4, special occasion
6g frequency of consumption - exotic =5 6g
>once a week = 1,
once a week = 2,
once a fortnight =
3, once a month =
4, special occasion
6h frequency of consumption - liquor =5 6h
60
>once a week = 1,
once a week = 2,
once a fortnight =
3, once a month =
4, special occasion
6i frequency of consumption - others =5 6i
>once a week = 1,
once a week = 2,
once a fortnight =
3, once a month =
4, special occasion
6j frequency of consumption - any / no pref =5 6j
>once a week = 1,
once a week = 2,
once a fortnight =
3, once a month =
4, special occasion
7 often u consume chocolates - foreign chocolates =5 7
8a where do u get foreign choclates - buy from retail shops Yes = 1, No = 0 8a
8b where do u get foreign choclates - buy from bakeries Yes = 1, No = 0 8b
8c where do u get foreign choclates - buy from duty free Yes = 1, No = 0 8c
8d where do u get foreign choclates - buy during foreign trips Yes = 1, No = 0 8d
8e where do u get foreign choclates - ask friends to get Yes = 1, No = 0 8e
8f where do u get foreign choclates - get as gifts Yes = 1, No = 0 8f
where do u get foreign choclates - never buy and only as
8g gifts Yes = 1, No = 0 8g
8h where do u get foreign choclates - others Yes = 1, No = 0 8h
don’t like to spend
money = 1, prefer
indian chocolates =
2, poor avaiability
= 3, no marked diff
= 4, too expensive
9a why don’t u buy foreign choclates =5 9a
stop eating foreign
choclates = 1, ask
people abroad to
get = 2, start
9b if u stop getting chocloates as gifts buying = 3 9b
10a would u buy from india Yes = 1, No = 0 10a
single unit = 1, 2-3
= 2, 4-5 = 3, gift
11 how many choclates u buy at a go pack = 4 11
12a Pupose of buying - self consumption Yes = 1, No = 0 12a
12b Pupose of buying - gifting Yes = 1, No = 0 12b
12c Pupose of buying - festivals Yes = 1, No = 0 12c
12d Pupose of buying - baking foods ingredient Yes = 1, No = 0 12d
12e Pupose of buying - in lieu of sweets Yes = 1, No = 0 12e
12f Pupose of buying - anytime snack Yes = 1, No = 0 12f
12g Pupose of buying - special occasions Yes = 1, No = 0 12g
13a how did u come to know - newspapers Yes = 1, No = 0 13a
61
13b how did u come to know - TVC Yes = 1, No = 0 13b
13c how did u come to know - magazines Yes = 1, No = 0 13c
13d how did u come to know - billboards Yes = 1, No = 0 13d
13e how did u come to know - WOM Yes = 1, No = 0 13e
13f how did u come to know - in-store Yes = 1, No = 0 13f
13g how did u come to know - others Yes = 1, No = 0 13g
14a importance of attribute - assortment Write the Rank 14a
14b importance of attribute - availability Write the Rank 14b
14c importance of attribute - brand Write the Rank 14c
14d importance of attribute - packsize Write the Rank 14d
14e importance of attribute - packaging Write the Rank 14e
14f importance of attribute - price Write the Rank 14f
14g importance of attribute - softness / texture Write the Rank 14g
14h importance of attribute - taste Write the Rank 14h
15a which brand do u consume - toblerone Yes = 1, No = 0 15a
15b which brand do u consume - mars Yes = 1, No = 0 15b
15c which brand do u consume - hersheys Yes = 1, No = 0 15c
15d which brand do u consume - snickers Yes = 1, No = 0 15d
15e which brand do u consume - bounty Yes = 1, No = 0 15e
15f which brand do u consume - lindt Yes = 1, No = 0 15f
15g which brand do u consume - after 8 Yes = 1, No = 0 15g
15h which brand do u consume - M & M Yes = 1, No = 0 15h
15i which brand do u consume - ferro roche Yes = 1, No = 0 15i
15j which brand do u consume - No brand Pref Yes = 1, No = 0 15j
15k which brand do u consume - others Yes = 1, No = 0 15k
16a1 toblerone - assortment write the rating 16a1
16a2 toblerone - availability write the rating 16a2
16a3 toblerone - brand write the rating 16a3
16a4 toblerone - packsize write the rating 16a4
16a5 toblerone - packaging write the rating 16a5
16a6 toblerone - price write the rating 16a6
16a7 toblerone - softness write the rating 16a7
16a8 toblerone - taste write the rating 16a8
16b1 mars - assortment write the rating 16b1
16b2 mars - availability write the rating 16b2
16b3 mars - brand write the rating 16b3
16b4 mars - packsize write the rating 16b4
16b5 mars - packaging write the rating 16b5
16b6 mars - price write the rating 16b6
16b7 mars - softness write the rating 16b7
16b8 mars - taste write the rating 16b8
16c1 Hersheys - assortment write the rating 16c1
16c2 hersheys - availability write the rating 16c2
16c3 hersheys - brand write the rating 16c3
16c4 hersheys - packsize write the rating 16c4
16c5 hersheys - packaging write the rating 16c5
16c6 hersheys - price write the rating 16c6
16c7 hersheys - softness write the rating 16c7
16c8 hersheys - taste write the rating 16c8
16d1 snickers - assortment write the rating 16d1
62
16d2 snickers - availability write the rating 16d2
16d3 snickers - brand write the rating 16d3
16d4 snickers - packsize write the rating 16d4
16d5 snickers - packaging write the rating 16d5
16d6 snickers - price write the rating 16d6
16d7 snickers - softness write the rating 16d7
16d8 snickers - taste write the rating 16d8
16e1 ferro roche - assortment write the rating 16e1
16e2 ferro roche - availability write the rating 16e2
16e3 ferro roche - brand write the rating 16e3
16e4 ferro roche - packsize write the rating 16e4
16e5 ferro roche - packaging write the rating 16e5
16e6 ferro roche - price write the rating 16e6
16e7 ferro roche - softness write the rating 16e7
16e8 ferro roche - taste write the rating 16e8
16f1 Bounty - assortment write the rating 16f1
16f2 Bounty - availability write the rating 16f2
16f3 Bounty - brand write the rating 16f3
16f4 Bounty - packsize write the rating 16f4
16f5 Bounty - packaging write the rating 16f5
16f6 Bounty - price write the rating 16f6
16f7 Bounty - softness write the rating 16f7
16f8 Bounty - taste write the rating 16f8
16g1 Lindt - assortment write the rating 16g1
16g2 Lindt - availability write the rating 16g2
16g3 Lindt - brand write the rating 16g3
16g4 Lindt - packsize write the rating 16g4
16g5 Lindt - packaging write the rating 16g5
16g6 Lindt - price write the rating 16g6
16g7 Lindt - softness write the rating 16g7
16g8 Lindt - taste write the rating 16g8
16h1 after 8 - assortment write the rating 16h1
16h2 after 8 - availability write the rating 16h2
16h3 after 8 - brand write the rating 16h3
16h4 after 8 - packsize write the rating 16h4
16h5 after 8 - packaging write the rating 16h5
16h6 after 8 - price write the rating 16h6
16h7 after 8 - softness write the rating 16h7
16h8 after 8 - taste write the rating 16h8
16i1 M&M - assortment write the rating 16i1
16i2 M&M - availability write the rating 16i2
16i3 M&M - brand write the rating 16i3
16i4 M&M - packsize write the rating 16i4
16i5 M&M - packaging write the rating 16i5
16i6 M&M - price write the rating 16i6
16i7 M&M - softness write the rating 16i7
16i8 M&M - taste write the rating 16i8
16j1 others - assortment write the rating 16j1
16j2 others - availability write the rating 16j2
16j3 others - brand write the rating 16j3
63
16j4 others - packsize write the rating 16j4
16j5 others - packaging write the rating 16j5
16j6 others - price write the rating 16j6
16j7 others - softness write the rating 16j7
16j8 others - taste write the rating 16j8
18a prefer eating on festive occasions write the rating 18a
18b like buying foreign brands write the rating 18b
18c buying chocolates is waste write the rating 18c
18d foreign chocolates are expensive write the rating 18d
18e foreign chocolates make good gifts write the rating 18e
18f indian are better in taste write the rating 18f
18g consume chocolates oncaasionally write the rating 18g
18h I buy only indian chocolates write the rating 18h
18i foreign choclates have high quality standards write the rating 18i
18j like to try new products write the rating 18j
19 Openness to buying foreign chocolates in future Yes=1,no=0 19
<20 = 1, 20-35 = 2,
20 Age 35-50 = 3, >50 = 4 20
male = 1, female =
21 Gender 2 21
<20K = 1, 20K-50k
= 2, >50k = 3, NA
22 Monthly household Income =4 22
<Graduate = 1,
Graduate = 2, PG
23 Education & Above = 3 23
Student = 1,
Service = 2,
Professional = 3,
Businessman = 4,
Housewife = 5,
24 Occupation Other = 6 24
64

Analysis of MARS Chocolate's Market in INDIA

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Analysis of MARS Chocolate's Market in INDIA

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BUSINESS RESEARCH METHOD

INSTITUTE OF MANGEMENT TECHNOLOGY, NAGPUR

Mars, Incorporated is a worldwide manufacturer of confectionery, pet food and other

a. Background to the problem/ Rationale for the project

b. Statement of the problem

c. Approach to the problem

1. What can be crudely said about the Market Potential?

o Proportional analysis of Consumers and Potential consumers and examining their

2. Who are our Current and Potential buyers?

o Through Demographic and Psychographic analysis of these buyers.

3. What is the Consumer Buying Behavior?

o Attitude Interests Opinion Analysis (AIO)

4. What is the Competitive Scenario?

o Brand-wise Analysis through Multi Dimensional Scaling and Secondary

b) Information Needs: from the problem statement we recognize the information

 Brand-wise Analysis: Competition Scenario, as to how the other brands are

d) Questionnaire development and pretesting

Simple Random Sampling: Within each category of consumers and non-consumers

Motivation needs of the respondent were fulfilled by distributing chocolates as an

A. Analysis of Secondary data

Chocolate Market in India

The chocolates market is estimated at around 33,000 tonnes valued at approximately Rs

Statistics: Chocolate Market

Demand : Past & Future Market Segmentation

become the generic

Foreign Chocolate Market

B. Analysis of Primary Data

B1. Market Potential Analysis

how many choclates u buy at a go

We have taken a conservative aspect, if a respondent is consuming more than 1 chocolate

B2. Consumer decision making Process

how did u come to know - WOM

how did u come to know - magazines

how did u come to

how did u come to

how did u come to

Consumer: the frequency and quantity of purchase for them is

often u consume chocolates

often u consume chocolates

often u consume chocolates

how many choclates u buy at a go

how many choclates u buy at a go

3. When does the market buy? Occasion

foreign chocolates make good gifts

4. Where does the market buy? Outlets

Source Percentag Source Percentage

Monthly household Income

where do u get foreign

where do u get foreign

Monthly household Income

where do u get foreign

5.Who constitutes the market?

Analyzing the consumer of foreign chocolates:

 Demographic analysis of the consumers of foreign chocolates:

36-50yrs 8 16.0 16.3 98.0

51 and above 1 2.0 2.0 100.0

Total 49 98.0 100.0

Female 23 46.0 46.9 100.0

Total 49 98.0 100.0

Monthly household Income

Valid Under 20,000 3 6.0 6.1 6.1

50,000and above 30 60.0 61.2 100.0

Total 49 98.0 100.0