Synopsis of End Term Project On Comparative study on consumer behavior towards premium chocolates

Submitted By Abdur Rahman Prof. Shelendra K. Tyagi Class: Section-C (2012-14) Roll No. 157

Supervisor: Area: Marketing

LAL BAHADUR SHASTRI INSTITUTE OF MANAGEMENT NEW DELHI

Detailed analysis of Premium Chocolate Brands in India

INTRODUCTION The literature review that I have done is on the article that talks about premium chocolates taking off in India. At 10 per cent of the overall Rs 2,000-crore chocolate market, the premium segment is small. Yet, it is growing at a steady 30-40 per cent per annum; according to industry estimates. Premium refers to those products whose average price is Rs 100 and above. Quite a few chocolates fall in this segment, including brands such as Lindt, Ferrero, Godiva, Mars, etc. Mostly imported and distributed in the country, some of them such as Ferrero are going a step further, by setting up local manufacturing facilities. A 100 grams bar of Lindt, costs anywhere between Rs 195 and Rs 255. It will soon introduce smaller packs of 38 gm. This will be priced between Rs 90 and Rs 120. Lindt is not the only one doing this. When leading chocolate maker Cadburys launched a rich chocolate variant of its Cadbury Dairy Milk called Silk earlier this year, it did so at Rs 99 for a 169 grams pack. Ferrero has its gift boxes, competitively priced at Rs 290 for a pack of five to over Rs 1,000 for a large 24-piece pack. According to industry sources, price points of Ferrero could fall further after its second manufacturing facility takes off in the middle of next year. Hence from the above we can conclude that due to the increase in the disposable income, the purchasing power of the people has increased and hence the indulgence in premium chocolates has increased.

OBJECTIVES OF THE STUDY To study the reasons of purchase of Premium Chocolates in India To find means of increasing customer satisfaction and recapture the market share by fulfilling the customer needs. To study the factors affecting the consumption pattern.

RESEARCH METHODOLOGY The research will be started by analyzing various secondary data available in websites, journals etc. Key insights from industry experts and some officials would be taken through interview. Some of the existing chocolate brands will be contacted to understand the various aspects of the industry. Findings and suggestions would be given after analyzing all issues related to the subject. Mainly, Microsoft Excel & SPSS research tools will be employed for the study and the study period would be of 5-6 months. The sampling frame would be limited to the residents of Delhi and NCR. Sampling technique used will be simple random sampling and cluster sampling. Sample Size Calculation The sample consisted of 360 respondents. Sample size calculated by means method. Sample Size (n) = [(z * ) / e]2 , Where z = 1.96 at 95% confidence interval, = Standard Deviation and e = Allowable error Calculation for Standard deviation: 99.7% of the elements fall within the range from -3 to +3 and considered scale length is 5(Maximum = 5 and Minimum = 1) b = (Maximum Minimum)/Range => 4/6 = 0.67

Allowable error (e) = 0.07 Putting all these values in the above formula, sample size was coming out to be 351. But to get best results a sample size of 360 will be considered. Sampling Plan Since it is not possible to study the whole sample representative sampling technique will be used. Sampling Element: Men, Women and Children Sampling Technique: Representative Sampling Sample Size: 360 Data Collection The data shall be collected through primary and secondary sources. Existing reports and previous studies done on premium chocolate segment shall be used as secondary data. For primary data a questionnaire shall be administered to the respondents to access their perception and buying behaviour pertaining to premium chocolates. Questionnaire Design The questionnaire shall consist of both structured and unstructured questions. Basic general information shall also be collected from the respondents through the questionnaire. Five point likert scale shall be used for scaling purpose.

SIGNIFICANCE OF THE STUDY This paper is an attempt to understand the premium chocolate industry in India and understand the consumer buying behavior. The study will throw light on the buying pattern and consumer behavior and preference of premium chocolates among the Indian consumers. The study will also help the players in the industry to know the current trends in the in the industry and what are the future growth prospects and opportunities in the industry.

BIBLIOGRAPHY

www.ebscohost.com Rosner L. (Feb 2013). Brand Passion Index: Valentines Chocolates: Hersheys Hordes the Buzz, but Ferrero Rocher Gets the Gold from http://www.netbase.com/sentiment/brand-passion-index-valentines-chocolateshersheys-hordes-the-buzz-but-ferrero-rocher-gets-the-gold/

Morris A. John (June 2012). Report : Chocolate of Tomorrow published by KPMG Orman S. (April 2013). Can slashed prices and a heavy marketing push improve Mondelz subsidiary Cadbury's Toblerone sales in India? Retrieved from http://www.fooddigital.com/retail/mondelez-international-and-cadbury-indiamaking-toblerone-happen

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