MBR Project Kashaff

Methods in Business Research 0
Candyland
Methods in Business Research Submitted to: Ms. Nida Aslam Fall 2013
Kashaf Ud Duja Ali | Muhammad Osama Sakha |Mohammad Shehmir | Muhammad Furqan Tamoor | Usman Azam | Mohammad Ali Iqbal
Table of Contents
About the Research ................................................................................................................................ 4 Research Objectives ............................................................................................................................... 4 Research Questions ................................................................................................................................ 4 Current Corporate Conditions................................................................................................................ 4 Overview of the Opportunity................................................................................................................. 5 Significance of the Opportunity ............................................................................................................. 5 Limitations of Research .......................................................................................................................... 6 Research Design ..................................................................................................................................... 6 Type of Research ................................................................................................................................. 6 Sample and Size .................................................................................................................................. 7 Secondary Data Collection .................................................................................................................. 7 Primary Data Collection ...................................................................................................................... 7 Data Categorization ............................................................................................................................ 7 Data Analysis ....................................................................................................................................... 8 Research Methods and Tools .............................................................................................................. 8 Data Gathered ........................................................................................................................................ 9 Analysis of Data ...................................................................................................................................... 9 Chi-square Testing .................................................................................................................................. 9 Binomial Testing ................................................................................................................................... 10 Blind Tests............................................................................................................................................. 16 Graphs................................................................................................................................................... 16 Inferences and Findings ....................................................................................................................... 17 From Surveys..................................................................................................................................... 18 From Retailer Interviews ................................................................................................................... 19 From Blind Tests................................................................................................................................ 20 Recommendations ............................................................................................................................... 20 Appendix A: Literature Review ............................................................................................................ 24 Appendix B: Definitions ....................................................................................................................... 28 Socioeconomic Classes...................................................................................................................... 28 Stores ................................................................................................................................................ 29 Chocolates ......................................................................................................................................... 29 Appendix C: Questionnaires ................................................................................................................ 30 Market Survey ................................................................................................................................... 30
Methods in Business Research 2 Retailer Interview.............................................................................................................................. 33 Focus Group Guide............................................................................................................................ 35 Appendix D: Snapshots of Data Gathered ........................................................................................... 37 Customer Survey ............................................................................................................................... 37 Data from Focus Group ..................................................................................................................... 42 Appendix E: Transcribes and Complete Responses............................................................................. 44 Focus Group Transcripts ................................................................................................................... 44 Blind Tests ......................................................................................................................................... 65
Acknowledgement
We would like to take this opportunity to express our gratitude to Ms. Nida Aslam, for being a constant source of help, encouragement and feedback, and for guiding the group when it could not find (and later, decide on) a project. Thank you also, for the counselling, the extensions, and the in-person reviews of the initial report. We would also like to thank Anum Baig, the Teaching Assistant for the course, for the indepth tutorials and feedback. We literally could not have conducted this research without the continuous monitoring, evaluation and guidance she provided. Last but not least, we are obliged to Candyland and Mr. Saad Ahmed, our contact person for this project, for the valuable information and feedback provided to us for the facilitation of this research. We are grateful for their cooperation during the project.
Kashaf Ud Duja Ali Mohammed Shehmir Muhammad Osama Sakha Mohammad Furqan Tamoor Usman Azam Mohammad Ali Iqbal BBA V Fall 2013
About the Research This project is being undertaken for Candyland, which wants to enter the milk chocolate market in Pakistan. It was tailored to the companys needs, in light of discussions with Mr. Saad Ahmed. The research supervisors were Nida Aslam, Assistant Professor at the Institute of Business Administration, Karachi; and Anum Baig, Teaching Assistant for the course, Methods in Business Research, at the same institute. Research Objectives This research project has the following research objectives: To explore the Pakistani chocolate market for consumers aged 8-21 years, in terms of opportunities, problems and consumer taste preferences. To study the viability of Candyland as an entrant in the milk chocolate market for consumers aged 8-21, and the optimal price range for a chocolate bar in this target segment To offer recommendations regarding Candylands current chocolate products and associated strategies, based on insight gleaned through the research Research Questions How often does the target segment buy chocolates? What kinds of chocolates are bought, in terms of o Taste o Fillings o Price Which factors associated with the chocolate itself influence the decision-making process, and to what extent? Who are the major players in the Pakistani milk chocolate market? How is Candylands current chocolate portfolio performing, in general? C u r r e n t C o r p o r a t e C o n d i t i o n1 Ismail Industries Ltd. was incorporated as a public limited company in 1989. The company manufactures high quality confectionery products under the brand name Candyland. In 2002, they acquired a biscuit company from IBL (Meiji) and expanded their portfolio into biscuits under the brand name BISCONNI. With increasing competition from small-scale manufacturers, in 2003 they launched FIRST, another confectionery company, to cater to
1
Based on information provided by the contact person, Mr. Saad Ahmed
lower priced segment. Recently, Ismail Industries Limited has pursued a strategy of backward integration and portfolio diversification with the establishment of ASTRO PACK, a unit for manufacturing of Cast Polypropylene. Ismail Industries employ more food technologists than any other confectionery company in Pakistan, and have an extremely modern laboratory capable of developing innovative products and testing products and ingredients for quality and consistency. As a company they recognize the importance of efficiency and creativity to achieve growth in a competitive environment. They hold ISO 9001-2000 certification benchmark. Apart from serving local confectionary demand, ISL exports confectionary products worldwide in 26 countries around the world. Some major confectionary brands include: ChilliMilli jelly, NOW chocolate, Paradise chocolate, Sonnet chocolate, Cloud-9 chocolate wafers, ABC jelly, Butter Scotch Toffee, Beri-O toffee, Bottles jelly, Bear jelly, Dewy Chewy & Bubble Your Name, Rite biscuit, Butter Bites biscuit, Cocomo, Chocolate Chip, Chocolatte are some of their renowned brand names. Overview of the Opportunity Candyland is currently present in the chocolate business, and has 8 brands of chocolate available in the market. But, it does not market pure milk chocolates as of yet. Pure milk chocolate is currently available in the market, but it is manufactured by multinationals like Cadbury - no big, local company markets pure milk chocolate. Dairy Milks allure as an international brand has helped it emerge as a market leader, making it one of the major players in the confectionery business. Dairy Milk promises a good quality and taste and is available in the market in a range of SKUs, easily available at all types of retail stores. Therefore, while there is an opportunity for Candyland to launch a new product in a market with few direct rivals, entering a segment dominated by a major market player can be a tough challenge. Because of this, it is important for Candyland to know whether it can enter the market. The company must understand the Pakistani milk chocolate market, and develop a deep insight of consumer behaviour and thinking, if it wants to achieve a competitive advantage. Moreover, it faces unique constraints as a local player competing with an international brand. Significance of the Opportunity The pure milk segment in the chocolate market is an area where there is only one major competitor at present - Cadbury. There are other local brands also present in this segment
(e.g. Top Milk by Mitchells), but their market share and quality are both minimal. Therefore, this segment presents a lucrative opportunity for Candyland to capture this market from a single player, instead of competing with several ones. Secondly, there has been a trend observed in Pakistani children, teenagers and young adults, to purchase chocolates as gifts or to distribute, on occasions such as birthdays. If Candyland can capitalize on this trend by offering a relevant product, it can expand its sales in urban areas. Finally, an initial response survey found that consumers feel constrained in their choice for a single milk chocolate offering, Dairy Milk. It was discovered that these consumers would be willing to give a new milk chocolate brand a try, provided it offers good quality. Therefore milk chocolate presents a huge market which, coupled with Candylands historic presence and extensive product ranges, presents a significant and lucrative opportunity. Limitations of the Research The findings of this research are limited to urban Karachi, because time and financial constraints meant the research could not cover rural areas, or any other city. The result also does not account for the taste preferences and buying behaviour of consumers from SECs D and E, because these were hard to locate, and hence not surveyed or interviewed. For the electronic survey, more consumers from SEC A were surveyed, as opposed to consumers from SECs B and C, due to time constraints. This is reflected in the high standard deviation, for the preferred price range of chocolate. Research Design Type of Research This is an exploratory business research, on the consumption of chocolate bars by 8 - 21 year olds in Pakistan. It aims to study the Pakistani chocolate market, particularly the milk chocolate market, and gauge any business problems and opportunities in it. It also uses descriptive tools, to cross-validate the qualitative findings. Sampling Technique The research used Cluster Sampling. For different tools, respondents were divided into clusters according to SECs, age groups and store types. Simple random samples were then drawn from each cluster.
Sample and Sample size: Consumer surveys Areas covered: Gulshan-e-Iqbal, North Nazimabad, Defence, Malir. Age groups: 8-23 SEC A 30 SEC B 30 SEC C 30 Retail surveys Areas covered: Gulshan-e-Iqbal, North Nazimabad, Defence, Malir. A type 2 B type 4 C type 4
Focus groups Areas covered: Gulshan-e-Iqbal, North Nazimabad, North Karachi, PECHS. Age groups: 12-19 SEC A 2 SEC B 2 SEC C 2
Blind tests and conversations Areas covered: Gulshan-e-Iqbal, North Nazimabad, North Karachi, Malir Age group No. of respondents 8-11 7 12-15 7 16-18 5 19-21 6
Secondary Data Collection For secondary data, internet databases such as WARC and JSTOR were used to conduct a literature review on the global and regional chocolate market in general, and the milk chocolate market in particular. The literature review focused on gauging consumer preferences, and identifying top-selling chocolate brands and their marketing strategies. Because literature on the Pakistani chocolate market is scarce, the literature review looked at regional information, especially research on the Indian chocolate market. Primary Data Collection Primary data was collected through five means: surveys, focus groups, structured interviews, blind tests and conversations. The section on tools employed provides a more detailed breakdown of primary data collection. Data Categorization Qualitative data was categorized, based on recurrent themes in the focus group and interview transcripts. Quantitative data was categorized using Excel pivot tables, and IBM-SPSS software. This hybrid approach allowed for the structuring, documentation and standardizing of both qualitative and quantitative data, into an interactive whole. Data Analysis
Qualitative data was analysed through a hermeneutics approach: recurrent themes were identified from focus group and interview transcriptions, for both consumers and retailers. These were used to draw inferences, and offer recommendations. Quantitative data was analysed in two ways: through advanced Excel, and IBM-SPSS. The analysis was used to gauge relationships amongst variables, based on pivot tables and statistical tests. Research Methods and Tools The research methodology employed the following five research tools: 1) 2) 3) 4) 5) Surveys Focus Group Interviews Structured Interviews Blind Tests Conversations
1) Surveys To target consumers in all socio-economic classes, a consumer survey was conducted in two ways: mall intercept and electronic. The objective was to get a general feel of the chocolate market and consumer preferences therein, based on which a targeted focus group outline could be developed. The mall intercept surveys catered to consumers from SECs B and C, while the electronic surveys targeted consumers from SECs A and B. 2) Focus Group Interviews Focus groups were conducted in six schools, two each from SECs A, B and C. For these, people aged 12-19 were targeted. The qualitative data gained through these discussions, reflected more elaborate perspectives and insights than the quantitative data gained through the initial survey. 3) In-depth Structured Interviews The target of employing this tool was to get a better insight of chocolate consumption and preference from the retailers viewpoint. In this phase, over ten in-depth, structured interviews were conducted, in A, B and C type stores, across Karachi. The results also threw light on the supply chain activities and trade offers given to retailers and shopkeepers, by chocolate manufacturers. 4) Blind Tests Blind testing was used as the final tool in the research, to cross-validate the consumer preference information gained through the surveys, focus groups and interviews, and filter out any intentional or unconscious biases in the responses. Blind tests were conducted on 25 individuals, from all age groups. Based on insight gleaned through the previous tools, three chocolates in the optimal price range - a pure milk chocolate,
Dairy Milk; a caramel chocolate, Now; and a wafer chocolate, Cloud 9 - were used for these tests. 5) Conversations To gain insight into the results of the blind tests, the blind tests were accompanied by semi-structured conversations, which discussed the reasons a consumer liked or disliked a particular chocolate.
Data Gathered For an overview of the data gathered, please see Appendix C. For an in-depth look at the data, including complete responses to the survey and interview questionnaires, focus group transcripts, and blind test results, please see Appendix D. Analysis of Data This section discusses the tests run on gathered data, and gives the statistical inferences. To see what these inferences mean in layman or business terms, please proceed to the section on Inferences & Findings. Chi Square Testing Type of Chocolate and Filling
Type of Chocolate Caramel Dark Milk I don't prefer any of these Be pure chocolate Have nuts, raisins or fruits Filling Have wafer I don't prefer any of these Total 7 0 17 2 1 17 6 2 53 2 1 3 17 4 90 2 8 8 6 26 19 0 0 36 33 Total
Chi-Square Tests Value df Asymp. Sig. (2sided) Pearson Chi-Square Likelihood Ratio N of Valid Cases 24.188
a
8 8
.004 .007
22.849 90
58% of the respondents prefer milk chocolate, while 18% each prefer caramel and dark. Of those that prefer milk chocolate, 49% prefer their milk chocolates to be pure, while 35% prefer that their chocolate have nuts, raisins or fruits. Of respondents that prefer caramel chocolates, 11% want their chocolates to be pure, while 83% prefer their caramel chocolates to have some kind of embellishment. Because the Pearson Chi-Square value is less than 0.05, it can be concluded there is no association between the type of chocolate and the kind of filling. However, because the likelihood ratio is greater than 0.05, it can be inferred that the dependent outcomes are likelier under this current model, than without it. Age and Type of Chocolate
Type of Chocolate Caramel Dark I don't prefer any of these Below 12 12 - 15 Age 16 - 18 19 - 23 Above 23 Total 0 5 5 7 0 17 0 5 6 6 0 17 0 0 0 3 0 3 3 14 16 19 1 53 3 24 27 35 1 90 Milk Total
a
12 12
.798 .608
10.093 90
a. 13 cells (65.0%) have expected count less than 5. The minimum expected count is .03.
Milk chocolate is the most popular, in all age groups. The Pearson Chi-Square and Likelihood Ratio significance values are both much greater than 0.05, which shows that the chocolate preferences shown here are highly dependent on age groups. Price Range and Type
Type of Chocolate Caramel Dark I don't prefer any of these Price range More than Rs. 25 1 6 0 9 16 Milk Total
Rs. 10 - 15 Rs. 16 - 20 Rs. 21 - 25 Rs. 5 - 9 Total
4 6 5 1 17
5 4 1 1 17
2 1 0 0 3
20 10 10 4 53
31 21 16 6 90
a
12 12
.465 .379
12.858 90
Frequency of Purchases
Type of Chocolate Caramel Dark I don't prefer any of these 1-2 times per week 3-4 times per week Frequency 5-6 times per week Less than once a week More than six times a week Total 6 4 0 7 0 17 6 4 0 7 0 17 1 0 0 2 0 3 25 14 1 11 2 53 38 22 1 27 2 90 Milk Total
a
12 12
.872 .765
8.249 90
Milk chocolates are the most frequently purchased, with 47% of respondents buying them at least once a week, and 19% of respondents buying them at least thrice a week. Caramel chocolates are the second most purchased, with 11% of respondents purchasing them at least once a week.
The Pearson Chi-Square and Likelihood Ratio significance values are both greater than 0.05, which shows that the type of chocolate and frequency of purchases are associated. Tendency to Try Out New Chocolates (After they are Made Available in the Market)
Do you try out new chocolates? Never Caramel Dark Type of Chocolate I dont prefer any of these Milk Total 1 0 1 3 5 Often 3 3 1 14 21 Rarely 4 7 1 12 24 Sometimes 9 7 0 24 40 17 17 3 53 90 Total
a
12 12
.683 .665
9.442 90
74% of the respondents who prefer milk chocolates, are inclined towards trying out new chocolates, sometimes or often; while 71% of respondents who prefer caramel chocolates, and 58% of respondents who prefer dark chocolate, exhibit the same behaviour. The Pearson Chi-Square and Likelihood Ratio significance values are both greater than 0.05, which shows an association between the type of chocolate, and the willingness to try out new chocolates.
Consumer Behaviour Change brands frequently Caramel Dark Type of Chocolate I don't prefer any of these Milk Total 9 8 0 25 42 I don't consume chocolates 1 0 2 0 3 Stick to same one 7 9 1 28 45 17 17 3 53 90 Total
53% of caramel chocolate consumers change brands frequently, while 47% of milk darn dark chocolate consumers exhibit the same behaviour. Factors Considered When Purchasing Chocolates
Age
Taste 1 12 - 15 16 - 18 Age 19 - 23 Above 23 Below 12 Total 1 2 3 0 0 6 2 1 1 0 0 0 2 3 0 0 1 0 0 1 4 1 4 4 0 0 9 5 21 20 27 1 3 72 24 27 35 1 3 90 Total
a
16 16
.985 .945
8.125 90
Price
Price 1 12 - 15 16 - 18 Age 19 - 23 Above 23 Below 12 Total 6 5 2 0 1 14 2 1 4 4 0 0 9 3 7 5 9 0 1 22 4 4 6 13 0 1 24 5 6 7 7 1 0 21 24 27 35 1 3 90 Total
Chi-Square Tests Value df Asymp. Sig. (2sided) Pearson Chi-Square Likelihood Ratio 13.707
a
16 16
.621 .538
14.815
N of Valid Cases
90
Convenience
Convenience 1 12 - 15 16 - 18 Age 19 - 23 Above 23 Below 12 Total 1 2 0 0 0 3 2 0 3 2 0 0 5 3 10 12 15 1 1 39 4 10 7 13 0 2 32 5 3 3 5 0 0 11 24 27 35 1 3 90 Total
a
16 16
.897 .739
12.075 90
Condition
Condition 1 12 - 15 16 - 18 Age 19 - 23 Above 23 Below 11 Total 1 3 2 0 0 6 2 2 2 1 1 1 7 3 2 3 6 0 1 12 4 9 4 9 0 0 22 5 10 15 17 0 1 43 24 27 35 1 3 90 Total
a
16 16
.122 .473
15.715 90
Packaging
Packaging 1 12 - 15 16 - 18 Age 19 - 23 Above 23 Below 11 Total 2 1 4 0 2 9 2 1 7 9 1 0 18 3 0 7 5 0 1 13 4 6 5 6 0 0 17 5 15 7 11 0 0 33 24 27 35 1 3 90 Total
a
16 16
.006 .006
33.687 90
The Pearson Chi-Square and Likelihood Ratio significance values for the last test are both less than 0.05, which shows a lack of association between packaging and purchases. Breaking down the results, packaging is the most important to children aged 12-15, 88% of whom consider it when making a purchase. Binomial Testing
Category N Observed Prop. Test Prop. Exact Sig. (2tailed) Group 1 Taste Group 2 Total Group 1 Price Group 2 Total Group 1 Convenience Group 2 Total Group 1 Condition Group 2 Total <= 3 >3 <= 3 >3 <= 3 >3 <= 3 >3 9 81 90 45 45 90 47 43 90 25 65 90 .10 .90 1.00 .50 .50 1.00 .52 .48 1.00 .28 .72 1.00 .50 .000 .50 .752 .50 1.000 .50 .000
Group 1 Packaging Group 2 Total
<= 3 >3
40 50 90
.44 .56 1.00
.50
.343
Blind Tests
Category
Observed Prop.
Test Prop.
Exact Sig. (2tailed)
Group 1 Now Group 2 Total Group 1 Dairy Milk Group 2 Total Group 1 Cloud 9 Group 2 Total
<= 3 >3
22 3 25
.88 .12 1.00 .08 .92 1.00 .28 .72 1.00
.50
.000
<= 3 >3
2 23 25
.50
.000
<= 3 >3
7 18 25
.50
.043
Descriptive Statistics N Now Dairy Milk Cloud 9 Valid N (listwise) 25 25 25 25 Minimum 1 3 2 Maximum 4 5 5 Mean 2.44 4.48 4.00 Std. Deviation .961 .653 .957
Graphs
When do you or your family buy chocolates?
On occasions (when guests are coming over, when you have to treat your friends) As gifts for friends on birthdays, graduations etc. Festivals such as Eid
When younger siblings ask or insist
Routine - whenever I feel like it 0 10 20 30 40 50 60 70 80
Who or what generally influences your decision to buy chocolates?

I don't consume chocolates My own personal choice Word-of-mouth advertisement or hype TV or print ads Younger siblings Older siblings Friends Father Mother 0 10 20 30 40 50 60 70
Inferences& Findings (In Layman Terms)
From Surveys 1. Chocolates are high on the list of junk food items purchased, with 55% of respondents listing them as the convenience food they purchase most often.
2. Chocolate purchases are generally impulsive. However, planned purchases are made as birthday gifts. 3. Milk chocolates are the most preferred type of chocolate. When fillings are weighed into the decision process, pure milk chocolate without any embellishments is the most preferred. 4. The preference for a type of chocolate (milk, dark or caramel) is superior to the preference for filling. Someone who prefers wafer-based milk chocolate, may be willing to purchase pure milk chocolate. However, just because this respondent prefers wafer-based milk chocolate, does not mean she or he will be willing to purchase wafer-based caramel chocolate. 5. Taste preferences are the most important factor in a consumers decision to purchase a chocolate. 90% of consumers rate it 4 or above, on a rating scale.2 6. The condition of a chocolate is the second most important factor in a consumers decision to purchase chocolate. 72% of consumers rate it 4 or above, on a rating scale. This means a chocolate that is melted or deshaped at the point of purchase, will hardly ever be purchased. 7. Packaging does not influence purchases, except in the case of children aged 12-15, 88% of whom consider it highly important when buying a chocolate. 8. Convenience is an important factor, across all age groups. The importance of how easily a chocolate is available, does not change with age. In general: o Even if consumers like the taste of a chocolate, it will not sell much if is not conveniently available. o If consumers do not like the taste, the chocolate will not sell, even if it is conveniently available. 9. Consumers who purchase milk chocolates, purchase chocolates most frequently. Caramel chocolate consumers purchase caramel chocolates less frequently, while dark chocolate consumers purchase dark chocolate very rarely. 10. It is easiest to convince milk chocolate consumers to try out a new milk chocolate, and caramel chocolate consumers to try out a new caramel chocolate. It is much harder to convince a milk chocolate consumer to try out a caramel or dark chocolate; a caramel chocolate consumer to try out a milk or dark chocolate; or a dark chocolate consumer to try out any type of chocolate at all. This means that a company introducing a new milk chocolate, must target existing milk chocolate consumers. Fr o m F o c u s G r o u p s 1. Dairy Milk is the most preferred chocolate brand in the Rs. 5-9 and Rs. 10-15 categories, because it offers the highest quality in the category. 2. Almost all consumers dislike the thinness of the Rs. 10 Dairy Milk. However, they continue to purchase it because it offers the best value for money, in the category. 3. The optimal price range for SECs B and C is Rs. 10 - 15.
With 1 representing least important; and 5, most important.
4. Even though milk chocolate is the most purchased, consumers in SECs B and C would prefer caramel chocolate to milk chocolate, if they could find an easily available Rs. 5 - 15 chocolate that is high on caramel content. 5. The availability of a chocolate has a strong impact on sales. 6. The variety of chocolates that is available in school canteens, strongly influences the purchase decisions of 12-15 year olds. 7. Candyland is considered a brand whose chocolates are low-priced and targeted at children. 8. Now has 100% brand awareness in all three SECs. However, it is considered low on caramel content, and hard to chew. 9. Consumers from all three SECs who have tasted Cloud 9, like its taste. However, Cloud 9 is not available in most shops and stores. 10. Chocolate purchases in the Rs. 5-20 category are generally impulsive. 11. Chocolate purchases are planned on occasions such as birthdays. Buying gift packs or cartons, ranging from Rs. 50 - Rs. 200, on these occasions, is popular in all three SECs. 12. Word-of-mouth advertising plays a huge role in attracting customers. Almost all consumers in the 8-19 years old target segment will try out a chocolate, if a friend or someone they know well recommends it. Fro m Retailer Interviews 1. Chocolates are generally purchased from Type A, B and C stores by children aged 8 - 15. 2. The price range at which chocolates in all three types of stores sell the most, is Rs. 10-15. 3. Young adults, aged 16-19 tend to purchase chocolates in the Rs. 21-25 range. 4. Pure milk chocolate sells the most in all three types of stores. 5. Dairy Milk is the most selling brand of chocolate in all three types of stores. 6. The sale of chocolates decreases in summers, due to melting. 7. Consumers buy gift packs and cartons of chocolates on occasions, such as festivals and approaching birthdays. 8. For a fast-moving consumer good like chocolate, public demand is the most important factor for retailers, when deciding share of shelf. 9. Profit margins are important for retailers, in general. However, they are less important when it comes to low-priced chocolates, because most chocolates offer similar profit margins. 10. In comparison to public demand and profit margins, the advertising campaign and quality of a chocolate do not matter at all to retailers. 11. However, retailers believe that advertising campaigns play a role in creating public demand. 12. Retailers are happy with Candylands supply chain, and have no complaints. 13. Retailers stock Candylands jellies and toffees heavily, but the same retailers do not stock Candyland chocolates extensively or at all, due to a lack of public demand.
14. Some retailers do not stock Candyland chocolates, because Cadbury offers excellent trade offers, in return for stocking only Cadbury chocolates. 15. Now is available at Type C stores, but is hard to find in Type B and A stores. 16. Cloud 9 is not available at most stores, irrespective of their type. From Blind Tests Quantitative findings 1. Pure milk chocolate and Dairy Milk are the most preferred type and brand of chocolate respectively, in the Rs. 10 - 15 category. 2. The average consumer finds Cloud 9 completely satisfying - the most frequent taste rating Cloud 9 received on a rating scale was 5. 3. Now is received most favourably by children aged 8-15, the same age group that showed a preference for caramel chocolates, in focus groups. Qualitative findings 1. Dairy Milk is liked by consumers for its smooth texture, rich, milky taste, and creaminess. This cross-validates the earlier quantitative and qualitative findings, that the average Pakistani chocolate consumer has a well-developed preference for pure milk chocolate. 2. Now is recognized as a low-quality caramel chocolate, because it is low on caramel content. Most consumers also said that it was hard to bite. This shows three things: that the Pakistani chocolate consumer is sufficiently used to caramel chocolate, for the inference that caramel chocolate is popular in Pakistan; that Now is disliked, because its caramel content is not high; and that, comparing the comments received on Now and Dairy Milk, the average Pakistani prefers to consume soft, rich chocolate. 3. Cloud 9 is very well-liked, for its thick layer of chocolate and wafer. Those who disliked it pointed out its hardness, which they felt detracted from it.
Re commendations Based on the findings and their analyses, the following recommendations are made to Candyland. I. Not launching a premium milk chocolate. Although the research makes it clear that milk chocolate dominates the Pakistani chocolate market, it is advised that Candyland not launch a premium milk chocolate. This is for two reasons: Candyland is not considered a premium brand. The findings show that consumers do not perceive Candyland products - even those that receive high taste ratings in blind tests - as high-quality products, when they are placed on shelves. In general, Candyland is considered a company whose confectionary products cater to children in
low-income groups. This makes it unfeasible for the company to launch a product that caters to SEC A, unless the company repositions or modifies its brand image. Consumer brand consciousness, the above-the-line marketing strategies employed by international brands, and Cadbury Dairy Milks comprehensive market coverage result in high barriers to entry in the milk chocolate market, which cannot be overcome without extensive spending on both push and pull strategies. Considering the resources Candyland can allot to a new product launch, it is not advised that the company seek to compete in the premium milk chocolate market.
II. Targeting the milk chocolate market in SECs B and C. It is recommended that Candyland launch a Rs. 10 milk chocolate positioned for these SECs because: Routine milk chocolate consumers in these SECs are not brand-conscious. This means Candyland can target them, without having to reposition its own image. Because the average milk chocolate consumer is willing to try out and adopt a new milk chocolate brand, the probability that Candyland can engage in below-the-line marketing to capture market share in these socioeconomic classes is high. Milk chocolate consumers in all three socioeconomic classes are highly dissatisfied with the thinness of Rs. 10 Dairy Milk. If Candyland can offer a thicker, pure milk chocolate for the same price, the research results show that milk chocolate consumers would be willing to switch. III. Consolidating its current portfolio. The research findings show that, while consumers are aware of the differences between the chocolates Candyland offers, this awareness has not been sufficient to encourage them to consume these. In other words, Candyland chocolates sell based on their price, rather than on their tastes or perception of quality. Since, price-wise, all of Candylands chocolates cater to the same socioeconomic classes, this leaves little differentiation between them. Based on these findings, this report recommends Researching whether the companys chocolates may be cannibalizing each other, because the people who consume them are consumers who are more concerned about price than taste Identifying which Candyland chocolates have the greatest and least market demand and marketability Consolidating the companys current chocolate portfolio into the two best-liked brands, so that the company may pool its resources, to market a few winning brands. Focusing on retaining chocolate brands that are priced between Rs. 10 - 15, which findings show is the optimal price range for a chocolate in SECs B and C. Establishing an optimal scale of production, by doing away with chocolates that are shown to have little market demand, and hence cutting down on the costs of production and packaging.
IV. Researching Cloud 9. Blind tests show that Cloud 9, one of Candylands more recent offerings, is a clear winner - people prefer its taste as much as that of the overall market
leader, Dairy Milk. Considering that Cloud 9 is also priced in the optimal price range, this report recommends: Researching the claim that Cloud 9 is not easily available, as easy availability is shown to be an important factor in a customers decision to purchase a chocolate. Utilizing the cost-savings achieved through portfolio consolidation to advertise this brand, since findings show advertising plays a very important role in attracting customers
V. Revamping Now. Qualitative research shows that caramel chocolate has a massive market in SECs B and C - in fact, actual demand for caramel chocolates in these socioeconomic classes is greater than that for milk chocolate. However, people opt for milk chocolate, because existing, low-priced milk chocolates offer better value for money, than existing caramel chocolates. In addition to this, Now has 100% brand awareness in all three SECs. Based on this, this report recommends: Leveraging the demand for caramel chocolate, by pushing Now to consumers through the trade promotions and below-the-line marketing strategies discussed below. Addressing the major issue with Now - its low caramel content - to convert users who opt for Dairy Milk, because no low-priced caramel chocolate offers a good amount of caramel content, into Now users. V. Focusing on trade promotions. The research has shown that retailers tend to give Cadbury Dairy Milk more shelf space than any other chocolate, in part due to the trade incentives Cadbury provides them. Because Candylands marketing budget is restricted, and it cannot compete with big name chocolate brands on the basis of above-the-line (ABL) advertising, it is recommended that the company utilize trade promotions to push its winning products to consumers. For this, this report suggests Incentivizing in-store displays. Because this researchs findings show that most purchases of chocolates are impulse buying, which is encouraged if the product is placed near cash registers or the front of stores, Candyland can encourage impulse buying of its chocolates by offering retailers incentives to place Candyland chocolates at Point of Sale displays. Offering greater profit margins. While Candyland may not be able to offer retailers the kind of incentives Cadbury does, Candyland can push its chocolates through retailer, by offering them greater profit margins. Findings show that while profit margins are less important to retailers than public demand, they are still important. If Candyland can offer even twice the profit margin most other chocolates brands offer Rs. 2 instead of Rs. 1, on a Rs. 10 chocolate - it can catalyze on this finding, to capture much greater shelf space. Offering commissions. Candyland can also push its chocolates to consumers, by setting commission-linked sales targets for retailers. This approach also allows the company to recover the expenses it incurs in the form of commission payments, through an increase in sales volume.
VI. Engaging in below-the-line (BTL) marketing. It is clear that Candyland cannot spend extensively on ATL marketing. Therefore, the report recommends following a four-step BTL marketing approach, which includes: Pushing its products through school canteens. The qualitative research shows that the variety of chocolates available in school canteens, has a massive influence on the purchase decisions of children in SECs B and C. Children aged 12-15 are more likely to both try out and regularly purchase chocolates, that are available in their school canteens. It is hence recommended that Candyland push its products to consumers, by ensuring they are supplied in school canteens. It can combine this push strategy with trade promotions, to ensure that school canteens predominantly or exclusively supply Candyland chocolates. Creating avenues for increased publicity and word-of-mouth-recommendations, which are the single most important factor in a consumers decision to try out a new chocolate, through: a) Sampling. Research shows that, while there is a huge potential market for Cloud 9, not many chocolate consumers have tried it. To increase publicity for the brand, it is recommended that Candyland set up stalls that allow free sampling. This would also result in word-of-mouth recommendations, which are the single most important factor in a consumers decision to try out a new chocolate. b) Sweepstakes and contests. Sweepstakes and contests are popular in SECs B and C, especially among children. Because a sweepstake or contest often does not require more than one grand prize, or involves a large number of small prizes, it makes for cost-effective marketing - especially in elementary schools, where such activities are popular. c) Event sponsorships. To engage older children and young adults, Candyland can catalyze on the trend of sponsoring free product giveaways, at college and university level events. This allows Candyland to set up stalls, where its representatives can interact with students throughout the event. In most cases, such sponsorships will also result in Candyland representatives being allowed to speak at the events welcoming or closing ceremonies. This is a two-pronged approach: it does not just increase awareness of the product in its target market, but also allows consumers to taste the product, right there and then, an activity they might not have engaged in on their own, later on.
APPENDIX A
Literature Review Chocolate has been around for centuries, but it was not until the nineteenth century that nowfamous brands such as Cadbury introduced it to the fast-moving consumer goods market (Business 2000, 2012). Since then, the desire for chocolate products has risen around the globe, with cocoa supplies falling short of demand in 2010, and 2013 (Josephs 2013). Given the nature of this research, which focuses on clarifying the current situation in the Pakistani chocolate market, and finding business opportunities therein, this literature review addresses the following questions: 1) What is the market for chocolate, both globally and in the region? 2) What is the market for milk chocolate in the coming years, especially in South Asia? 3) How have leading chocolate brands stayed competitive in the Asian chocolate market? There can be no doubt that there is a massive market for chocolate products, and it is growing - according to a 2012 report published by the KPMG, chocolate may well be recessionresistant, as consumers choose to spend on it, even as they cut down on luxury products (p. 2 of 12). North America and Western Europe account for 50% of global chocolate demand right now, though research suggests both are reaching saturation. In the light of this, the BRIC nations - who account for over half of the worlds confectionary demand in general are expected to capture a larger and steadily increasing share of the chocolate market. Demand in Asia, too, is expected to rise (pp. 3-5). While demand for chocolate in Pakistan itself is still in the early stages of development, sales are increasing each year, and saw a 19% rise in 2012 (Euromonitor International, 2013). This does not, however, mean that chocolate manufacturers can sit back and take it easy: European Head of Consumer Markets, John Morris, is quick to point out that this rise in demand presents its own unique challenges, as consumers do not just want chocolate, but indeed want a wide variety of chocolate products, that are available for the right price, at the right place and time (KPMG, 2012, p. 2 of 12) Globally, then, KPMG suggests three kinds of buyers for chocolate - convenience buyers, who grab chocolate on impulse; value buyers, who want good value for their money, and account for a large share of the market in developing economies with ill-defined or large middle classes, like India and Pakistan; and luxury buyers, who are often seasonal, and tend to go for dark chocolate products (p. 7 of 12). While sweet chocolate or milk chocolate has been the traditional favourite, trends have begun to change of late, as consumers in the West - especially the USA and Europe - begin to shift towards darker varieties of chocolate. According to The Wall Street Journal, dark chocolates share in the chocolate market has risen to 20% in the US, a 2-percentage point increase in five years, while its share in Switzerland has seen a massive 8-percentage point jump, in the
same period of time (Josephs & Rai, 2013). This has been coupled with a decrease in the market share of milk chocolate, which has been falling since 2008 (Josephs 2013). Chocolate manufacturers in the West are therefore striving to develop and market new dark chocolate products, not only because of the shift in tastes, but also because the premium pricing attribute of dark chocolates results in higher profits for them. There are a number of factors driving this change in demand of dark chocolates. According to Thomas (2008), these include a trend towards health-conscious food choices, as the high percentage of cocoa present in dark chocolates leads to heart health and protection of the body; premium pricing, which makes it a favourite for sophisticated shoppers; ethical consumerism, as dark chocolates are single-origin chocolates, and better address consumer issues regarding free trade and organic production; and new product development, as dark chocolate products are being effectively developed in terms of health, taste, positioning and consideration of ethics in their packaging. As Thomas points out, these factors have also resulted in significant brand extensions from milk chocolate brands, such as Cadbury, which introduced the dark chocolate version of its Flake brand. Thomas hence argues that the market for dark chocolates will continue to grow at a good pace providing opportunities to the players in the market. Even so, it is important to notice how the regional chocolate market differs from dominant global demand. South Asians, in general, prefer sweeter chocolates. The result is that milk chocolate brands are popular in economies like India and Pakistan. In fact, Pinnacle (2013) argues that the largest market for chocolate products in South Asia is located in its most sweet-loving areas, such as Bengal. The Euromonitor Internationals report on chocolate sales in Pakistan (2013) gives the same results, showing that the Pakistani chocolateconsumer prefers milk chocolate - in 2012, for example, Mars, Cadbury Pakistan and Nestle Pakistan led the chocolate confectionary market with retail share values of 26.1%, 26% and 16.5% respectively, all with milk chocolate brands. This leads us to our final question of how these brands have maintained a strong presence in the regional and local chocolate markets. The BBC (2010) attributes the success of leading global and local brands such as Nestle, Kraft Foods, Cadbury, Mars, Hershey and Ferrero, to mergers and restructuring. In the case of Kraft and Cadbury, the two companies decided to merge the firms in order to generate competition. The chief executive Kraft Foods, Irene Rosenfeld, expected this combination to create a global powerhouse in snacks, confectionery and quick meals. She also thought that this combination had a tremendous growth potential (BBC News, 2010). This combination was taken as a major threat by Mars, which restructured its own global chocolate operations in response, realigning them to make them more focused on consumers and competition within each separate region. According to Alison Clarke, corporate affairs director for Mars UK (as cited in Russell, 2010), the changes were not just in the Europe and the UK, but also focused on the Asian market, which is becoming increasingly significant in terms of chocolate consumption. Therefore, this restructuring revived the previously existing competition between Kraft/Cadbury and Mars not only in Asia, but across the globe (Russell, 2010).
On a smaller and more marketing-oriented scale, Pinnacle (2013) outlines the case of Cadbury Dairy Milk in India, which identified consumer loyalty to the traditional sweet/mishti of Bengal as an opportunity to increase its market share. To achieve its goal of capturing a greater portion of the market, the company organized a Cadbury dairy milk sweet/ mishti competition for traditional sweetshop chains in Bengal. The company gave the competition a flavor of the general election, as Bengalis were identified as vote loving people, asking them vote for their favorite dairy milk mishti through a voting machine. The campaign was very successful, as it managed to integrate Cadbury dairy milk into the Bengal culture, and created a space for chocolates in the traditional mishti loving people of Bengal. According to Pinnacle, the consumer metric for Dairy milk as preferred sweet increased by 32% through this campaign. In short, we can conclude that demand for chocolate products is growing globally, with demand in South Asia - and therein, Pakistan - focused on milk chocolate brands and products. This demand is affected by taste, pricing, and availability of chocolate, among other factors, and the marketing, operations and supply chain functions all possess the potential to play significant roles in increasing or inhibiting it.
REFERENCES
BBC News. (2010, February 2). Kraft Foods completes Cadbury takeover. Retrieved October 29, 2013 from http://news.bbc.co.uk/2/hi/8492572.stm
Business 2000. (2012) Cadbury - Brand development through packaging. Retrieved October 29, 2013 from http://www.business2000.ie/pdf/pdf_3/cadbury_3rd_ed.pdf
Euromonitor International. (2013, May). Chocolate confectionary in Pakistan. Retrieved October 29, 2013 from http://www.euromonitor.com/chocolate-confectionery-inpakistan/report
Josephs, L. (2013, September 23). Brazil's chocolate demand heats up. The Wall Street Journal. Retrieved October 29, 2013 from http://blogs.wsj.com/moneybeat/2013/09/23/brazils-chocolate-demand-heats-up/
Josephs, L. & Rai, N. (2013, September 22). Chocolate prices soar in dark turn. The Wall Street Journal. Retrieved October 30, 2013 from online.wsj.com/news/articles/SB10001424052702303983904579091120112729130
KPMG. (2012, June). The chocolate of tomorrow: What today's market can tell us about the future. KPMG LLP. Retrieved October 29, 2013 from http://www.kpmg.com/UK/en/IssuesAndInsights/ArticlesPublications/Documents/PD F/Market%20Sector/Retail_and_Consumer_Goods/chocolate-of-tomorrow.pdf
Pinnacle, T. (2013). Cadbury Dairy Milk: Happily married - chocolate and mishti. WARC.
Russell, M. (2010). In the spotlight - Mars' global restructuring. Just-Food.
Thomas, J. (2008). Competing for the dark chocolate market. WARC Exclusive.
APPENDIX B Definitions
S o c i o e c o n o m i c C l a s s e s34
Education of Chief Earner Occupation of Chief Earner

Unskilled worker Petty trader Skilled worker Nonexecutive staff Supervisory level Small shopkeeper/ businessman Lower/middle: Executive, officer Self-employed/ employed professional Medium businessman Senior executive/ officer Large businessman/ factory owner Illiterate E2 E2 E2 E2 D D Less than Primary E2 E2 E2 E2 D D School 5-9 Years E1 E1 E1 D C C Matric E1 E1 D D C C Intermediate D D D D B B Graduate D C C C B B Postgraduate C C C C B A
B A
A A
A A
A A
A A
A A
A A
Adapted from Kotler, P. (2010). Principles of marketing: A South Asian perspective (13th ed.). Delhi: Pearson India. 4 For focus groups, SECs were allotted based on the mean SEC of children in the focus group.
S t o r e s5 Type C: Neighbourhood stores, where all dealing is done over-the-counter. The customer cannot enter the store to select an item; all items are accessed by the shopkeeper. Type B: Neighbourhood stores, where most dealing is done over-the-counter. The customer can enter the store and access a few items; however, most items are behind the counter, and can only be accessed by the shopkeeper. Type A: Stores which customers can enter and move around in. No items are accessed by the shopkeeper - the customer selects all the items, and then takes them to the point of sale. C h o c o l a t e s6 Milk: Solid chocolate, made with sugars and milk products, which contains a) at least 10% by weight of chocolate liquor b) at least 12% dry milk solids, obtained by partly or wholly dehydrating whole milk, semi- or full-skimmed milk, cream, or from partly or wholly dehydrated cream, butter or milk fat c) not less than 3.5 % by weight of milk fat Dark: Solid chocolate, made with sugars and milk products, which contains a) at least 15% by weight of chocolate liquor b) less than 12% dry milk solids, obtained from evaporated, sweetened condensed, or dried milk; concentrated, evaporated, or sweetened condensed skim milk; non-fat dry milk; concentrated or dried buttermilk, malted milk; or emulsifying agents, the total amount of which does not exceed 1.0% by weight; Caramel: Solid chocolate, made with sugars and milk products, which a) intimately mixes or grinds chocolate liquor with natural caramel, or artificial caramel flavouring b) contains at least 10% by weight of chocolate liquor c) contains less than 12% dry milk solids, obtained from evaporated, sweetened condensed, or dried milk; concentrated, evaporated, or sweetened condensed skim milk; non-fat dry milk; concentrated or dried buttermilk, malted milk; or emulsifying agents, the total amount of which does not exceed 1.0% by weight.
5 6
Adapted from work by Phillip Kotler. It is important to note that this does not apply to IMTs. US Food and Drug Administration (2013, June 1). CFR - Code of Federal Regulations Title 21. Retrieved from http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/CFRSearch.cfm?CFRPart=163
APPENDIX C Questionnaires Market Survey
* Required You are: * Male Female Your age is * Below 12 12 - 15 16 - 18 19 - 23 Above 23 The convenience foods you consume the most are * Check the top three. For 'other,' please specify. Toffees Chocolates Biscuits Chips Other: When buying chocolates, do you like them to be * Milky Caramel Dark None of the above Do you prefer your chocolates to * Be pure chocolate Have wafer Have nuts, raisins or fruits I don't prefer any of these
What is the price range of the chocolates you generally buy? * Rs. 5 - 9 Rs. 10 - 15 Rs. 16 - 20 Rs. 21 - 25 More than Rs. 25 How often do you consume an average chocolate pack, per week? * Average chocolate pack: 25 grams (Rs. 10-15) Less than once a week 1-2 times per week 3-4 times per week 5-6 times per week More than six times a week When do you or your family buy chocolates? * Please check all that apply. Routine - whenever I feel like it When younger siblings ask or insist Festivals such as Eid As gifts for friends on birthdays, graduations etc. On occasions (when guests are coming over, when you have to treat your friends) What factors do you consider the most when buying chocolates? Rate on a scale of 1-5, with 1 being least important and 5 being most important. * 1 Taste Price Convenience Condition (such as if it's melted or frozen) Packaging 2 3 4 5
Do you frequently change brands of chocolate, or stick to the same ones? Change brands frequently Stick to same one I don't consume chocolates Do you try out a new chocolate after seeing its advertisement? Often Sometimes Rarely Never
Retailer Interview Questionnaire
1. Which convenience foods are most demanded at your store? 2. Which age group is the major customer of chocolates in your store? 8-12, 12-15, 1619, 20-23, above that? 3. Do children come with their parents, or on their own? Generally, who makes the buying decision? 4. When it comes to chocolate, on what basis do you prioritize product placement and share of shelf? Probe for: profit margin, public demand, perception of quality, attractiveness of advertisements, and offers from companies. 5. Why do you stock (whatever chocolates they stock the most)? Probe for: Any reasons other than public demand. What kind of profit margins they receive. What kind of offers companies make to them, the incentives theyre given by different companies. 6. What kind of chocolate is the most demanded at your shop? Probe for: Brand names, type (milk, caramel, dark), fillings (pure, wafer, nuts and raisins, fruits). 7. Which SKUs are the most demanded at your store? Rank for: Rs. 5-9, Rs. 10-15, Rs. 16-20, Rs. 21-25, above Rs. 25 8. Is the sale of chocolate sensitive to the change in season? If yes, probe for: What seasons and how. 9. Is the sale of chocolate related to occasions? If yes, probe for: What occasions - festivals such as Eid? Birthdays? If theres a different in the kind of chocolates demanded at these occasions, and the chocolates people normally purchase. Does the brand or type of chocolate change? What kind of SKUs do people go for? Is there a change in packaging preferences? 10. In your opinion, what has the strongest negative impact on customer buying decision, when it comes to purchasing chocolates? 11. Is it easy for you to obtain Candyland products? Probe for: Company offers and relationship with the company.
Any supply chain issues. 12. What kind of Candyland products do you stock? Why these? Probe for: Why or why not they stock certain Candyland chocolates. 13. In general, which is the most selling brand of chocolate? For a chocolate that has several SKUs, ask for the SKU and price range that matters most.
Focus Group Guide 1 - 10 minutes: Set up and introduction For the introduction, give: Your name, your degree, how you connect to these students, how you were a student like them. Be nice. Tell them that youre here to research consumption patterns in junk food (or, in easier words, what kind of junk food people eat). Do NOT mention chocolates. Thats called a leading question - a question which tells the interviewer what you want to hear, and what to think about - and you absolutely dont want to do that, at most points in the focus group. Tell them how much of their time youll take (people like to know that) and STICK to it. Ask them if they have any questions before you begin. You should be taking ninety minutes, maximum. Forty-five minutes, minimum. You dont have to ask only whats on the list. Rule of thumb, with focus groups: Based on how people respond, you should typically be asking more/ different questions than whats on the focus group questionnaire. With each question, explain it. We know a lot of jargon (impulse buying vs. pre-planned, say) which they might not. These questions are not supposed to be asked as is. Theyre just things your focus group should provide answers to, or cover. Break them down and ask them in parts, if you want. Before you start asking questions, and after the introductions, tell them youre going to voicerecord the whole thing. Id suggest not videotaping, because Im not sure how many people would be comfortable saying no to a videotape, in a peer pressure wali setting, but you can do that too, if you want. Whatever you choose, make sure to get their consent. Pass a consent sheet around, and get all their names and signatures on it. 10-20: 1) What kind of junk food do you consume? What kind of titbits do you buy, when in a shop or a store? (Ideally, someone will mention chocolates. If no one does, feel free to bring them to sweets. If no one mentions it still, then bring chocolates in yourself. This helps us know how high chocolates are on their list of junk food items.) 2) On what occasions do you eat chocolate? How often? 3) Is purchasing chocolates mostly impulsive, or mostly pre-planned? 20-30: 4) What brands of chocolate have you tasted?
i) ii)
Which ones did you like the most? Why? Have you tried out a chocolate, and decided you didnt like it? Why didnt you like it? (Ask for specific names and examples. Explore for taste, packaging, ingredients, everything under the sun.)
30-35: 5) Do you try out new brands of chocolate? Or do you tend to stick to the same brand that you prefer? i) What was the last time you tried out a new brand of chocolate? 6) How soon do you try out a chocolate, after it comes into the market? Is that a conscious decision or an impulsive one? 35-40: 7) What are the price ranges for the chocolates you buy most often? (For example, on special occasions, people might buy Rs. 200 chocolate packs but, generally, they might buy Rs. 10 Dairy Milk.) 40-45: 8) Have you ever tried a chocolate because of its name or packaging? i) If yes, which one? What was it about it that attracted you? What did it remind you of? What were your expectations, after looking at the name and packaging? ii) Have you ever left a chocolate because of its name or packaging? Why? 9) If you could find lower-priced milk chocolates, would you go for them instead of your favourite brand? (Rs. 5 milk chocolate, compared to Rs. 10 Dairy Milk bar) 10) What do you think current chocolates lack? What would you change in them? 11) How do you define your ideal low-priced chocolate? Is there a brand right now that you find perfect? Which one? 75 - 85 (including closing) 12) Is there anything youd like to add? Any feedback or suggestions, or anything you feel we might have missed? 13) Close politely. Thank them for their time. Give them an email address and/ or contact number, and tell them to get in touch with you, if they come up with any new ideas. Have fun! ^___^
APPENDIX D Snapshots of Data Gathered Consumer Survey
You are
44% 56%
Male Female
Your age is
1% 3% Below 12 27% 42% Dec-15 16 - 18 19 - 23 27% Above 23
When buying chocolates, you like them to be

3% Milky 19% Caramel Dark I don't prefer any of these
19%
59%
Your prefer your chocolates to

4% Be pure chocolate 40% Have wafer Have nuts, raisins or fruits I don't prefer any of these
37%
19%
What is the price range of the chocolates you generally buy?
Which factors do you consider most when buying chocolates? Rate on a scale of 1-5, with 1 being least important and 5 being most important.
How often do you consume an average chocolate pack, per week?

1% 2% Less than once a week 30% 1-2 times per week 3-4 times per week 5-6 times per week 42% More than six times a week
24%
Do you frequently change brands of chocolate or stick to the same ones?

3% Change brands frequently 47% 50% I don't consume chocolates Stick to same one
Do you try out a new chocolate after seeing its advertisement?
6% 23% 26% Often Sometimes Rarely Never 45%
Data F rom Focus Groups Findings from SEC A Consumer preferences. The majority of the people in the two focus groups preferred Dairy Milk chocolates, over any other brand produced locally. The findings also show that SECA consumes prefer international brands like Snickers, Twix, Bounty, Butlers Chocolate, and Toblerone. In the low price category of chocolates, the participants preferred Dairy Milk over any other chocolate, because they felt it was the only low-priced chocolate which offered good quality. However, these participants were not happy about the quantity Dairy Milk gives. Buying behaviour. The buying behaviour of this SEC is generally impulsive, where chocolates in the Rs 11 - 20 price range are concerned. For international brands, however, the purchase decisions are planned. Planned purchases are also made on special occasions such as birthdays; these are brand conscious purchases. Pricing. Participants were price conscious, but not to the extent of compromising on taste consumers from SEC A will not spend money on lower quality chocolates, just because these chocolates are cheap. In general, they purchase chocolates in the Rs. 11 - 20 price range. For special occasions, they buy larger SKUs, or chocolate boxes or gift packs. Advertising. Consumers in SEC A respond to advertisements; a good ad will pull them towards a chocolate, and the brand power of company launching a new chocolate plays a strong role in their decision to try out a new chocolate. The general perception amongst these consumers was that advertisement campaigns of local companies are not very effective, because they do not leave a very strong image of the brand on their minds. Packaging. One of the groups showed an inclination towards the packaging of the chocolates, and discussed that international chocolate brands are very well-packed. It was seen that the quality of the packaging, reflected the quality of the product inside their minds. Findings from SEC B Consumer preferences. Though chocolates do not top the junk food priority list of SEC B consumers - chips and biscuits do - this class still goes for chocolates once or twice a week. The findings show that SEC B consumers most purchase local chocolate brands, such as Dairy Milk, Sonnet, Jubilee, Choc Day, Now and Cloud 9. These participants seemed to like caramel chocolates very much, but still preferred Dairy Milk in the low-priced category, because Dairy Milks high quality provided better value for money, than the low-quality caramel chocolates available for the same price. They mentioned that the taste of low-priced coconut-filled chocolates was not good, because the filling tasted oily, which they consider a sign of low quality. Where tastes are concerned, the participants
also mentioned that Dairy Milk is creamier and richer than other chocolates, which makes it better. In general, they showed a preference for soft, smooth chocolates; it was pointed out that Cadbury clairs are very hard to chew. The participants had tried most of the international chocolate brands available, such as Mars, Sneakers, Bounty and Kit Kat, and were well aware of the quality differences that exist between them and local brands. They complained about the quantity of chocolates in local brands, as well as the small amount of fillings inside them. Buying behaviour. Like SEC A consumers, SEC B consumers also purchase chocolates on occasions, in addition to their routine purchases. But the buying pattern varies a little. These children mostly buy cartons of Rs. 5 or Rs. 10 chocolates, and distribute these in their classes on their birthdays. Pricing. These consumers tend to buy chocolates in the Rs. 11 - 20 price range, and do not consume international brands often, because of the high prices associated with these brands. Advertising. There is no doubt that advertisements influence these participants buying decision. The participants remembered the advertisement of the chocolate Now (Candyland ki chocolate Now, sab se achi chocolate Now) and said that it was very catchy. They also complained that Mitchells Luxury and CandyLands Paradise were copies of Bounty. Their buying decision is highly influenced by their friends and word of mouth; they usually try a new chocolate when they hear someone appreciating it. Findings from SEC C Consumer preferences. Chocolates were not very high on the priority list of junk food items participants from this SEC consumed. However, all participants had tried out most of the chocolate brands, and knew them by name. Most of them preferred Diary Milk to all other local brands. It was also found that these children would rather not have wafer or nuts or fruits inside their chocolate, and prefer pure chocolates. Buying behaviour. Because these children do not buy chocolates very often (once or less than once a week), their purchases were mostly pre-planned. Pricing. The price range these participants prefer is Rs. 5 - 10, the lowest price range. Advertising. Most of the participants pointed out the TVCs for Dairy Milk, which attracted them towards the chocolate. Their decision to buy new brands is also very much influenced by what their friends say and what they see on TV. An interesting insight was that these children have the perception that chocolate is not good for health, and adversely affects health. Packaging. It was seen that packaging affects the buying decision; most participants said that they liked Dairy Milks packaging, and were attracted by it.
APPENDIX E Transcribed and Complete Responses Focus Grou p Transcripts
Institute of Business Administration, Karachi Location: Gulshan-e-Iqbal SEC A Age group of participants: 17 - 19 years Number of participants: 4 Breakdown: 2 males, 2 females What kind of junk food do you consume? What kind of titbits do you buy, when in a shop or a store? R1: Chocolates R2: Chips, chocolates R3: Chips, chocolates R4: Chocolates How often do you have chocolates? R1: Twice in a week R2: Once or twice a week R3: Once in two weeks R4: Twice a week Is purchasing chocolates mostly impulsive, or mostly pre-planned? R1: I have chocolates whenever I feel like it. R2: Its mostly pre-planned. Especially for occasions, I decide what kind of chocolate I want to buy, based on the price and brand, and the kind of chocolate the guests or the person Im giving it to would like. R3: Its generally pre-planned. R4: If I feel like having a chocolate, Ill have it. Or if Im picking up groceries or food, and I see chocolates, Ill pick a few up if I feel like having them. What brands of chocolate do you like the most? R1: KitKat, Dairy Milk R2: Dairy Milk, Galaxy, Twix R3: Dairy Milk, Butlers Chocolate R4: KitKat, Dairy Milk, Galaxy What about local brands? R1: Dairy Milk is great. Perk is good, too. R2: Ive tried out Paradise.
R3: Ive tried Jubilee and Now. Perk as well. R1: Ive tried both of them, too. R4: Now, Jubilee, Perk. Except that Now isnt available in the market. Has anyone else faced difficulty getting Now? R1: Its a pretty famous local chocolate, but it is difficult to get. R2: Yes, its not normally available in the market. Most shops near my house dont have it. R3: Its available very selectively. Some stores near my house, you can get Now there, but I think most small shops just have Dairy Milk. What do you think of Candylands chocolates, overall? What is your image of them? R1: Low-priced. R2: Theyre aimed at children, like Candylands toffees and candies. Not very high on quality. But that makes sense, because Candyland is a brand for the masses. R3: I dont see them as very high on quality. If theres a Candyland product, chocolate, on shelves, I tend to think it will be cheap. Not very grand or anything. Their ads are catchy, though. R4: Cheap chocolates, something to go for if youre bored or want a quick chocolate. They mostly attract children. But Now is good. In general, which chocolates do you like? Which ones do you like? What are the reasons? R1: I prefer international brands, because the taste, packaging, everything is much better. They dont skimp on fillings either. Most Pakistani brands do. R2: Dairy Milk is great, but only if you buy the higher-priced packs. The Rs. 10 Dairy Milk isnt that great, in terms of quantity. Its still much better than other local brands, though, which dont taste good at all. I would never go for them. R3: Local brands like Now, Jubilee, you can tell theyre not good-quality chocolate on the first bite. Now is also hard to chew. Butlers Chocolate has an amazing taste and texture. There isnt much here, in terms of milk chocolate, but the Rs. 25 and above packs of Dairy Milk are pretty good. R4: Dairy Milk is good pure milk chocolate, even the Rs. 20 packs. Its soft, rich, and easy to chew. Cloud 9 has a very nice layer of chocolate. I dislike most local brands, not because theyre local, but because the taste isnt that good. They compromise on quality, so they can sell cheap. What is the price range for the chocolates you buy most often? R1: Rs. 20-30. R2: Rs. 10-30. On special occasions, I buy much more expensive chocolate. R3: In general, anything from Rs. 10 - Rs. 30. R4: Rs. 10, Rs. 20 chocolates in general. Have you ever tried a chocolate because of its name or packaging? R1: Yes, because of the name, especially international brands.
R2: When the packaging is very unique, you want to try it out. I dont continue if the taste isnt good, though. R3: The packaging is important, especially if Im buying it for an occasion, like giving someone a gift. For occasions, I only buy chocolates that have very nice packaging. R4: The brand name is important. Especially if its an international chocolate, the name will make me try it out. And if its local, you dont want to give it to your friends or on an occasion. The same goes for the packaging. In routine life, though, the taste is more important than the name or the packaging. So if I like a chocolate, even if its local or the packaging isnt that great, Ill continue to purchase it. R1 and R3 agreed. If you could find lower-priced milk chocolates, would you go for them instead of your favourite brand? R1: No, I wont. R2: No, its very doubtful that something worth Rs. 5 could offer good quality. R1: I would try it out, but I wouldnt stick to unless the quality is much better, or at least the same. R3 and R4 agreed. What do you think current chocolates lack? What would you change in them? R1: The quality of local brands, most of all. Even for Rs. 15 or so, most local chocolates wont offer a good taste or experience. R2: Quality, taste. You dont have a lot of choice, if you want good chocolates. N ot in local shops, anyway. Dairy Milk is good, but the Rs. 10 Dairy Milk is pretty thin. Not much in terms of filling. The advertising for most local brands - other than Dairy Milk, of course - is pretty ineffective too. R3: Local brands like Now and Jubilee are hard to chew. With Dairy Milk, one major issue is that it melts really quickly, especially the Rs. 10 one. In a place like Karachi, thats not very good. R4: Quality, taste. Im willing to pay Rs. 20 instead of Rs. 10, but the quality should be good . In Pakistan, if you want quality, you mostly cant go for local chocolates. Is there anything else youd like to add? Any questions or suggestions? Everyone: Nope.
Beaconhouse School System Location: PECHS SEC A Age group of participants: 14 - 15 years Number of participants: 6 Breakdown: 4 females, 2 males What kind of junk food do you consume? What kind of titbits do you buy, when in a shop or a store? R1: Fries, burgers R2: Fries R3: Chocolates, fries, burgers R4: Chocolates R5: Cold drinks, fries, chocolates R6: Chips, chocolates On what occasions do you eat chocolate? R1: Not really planned, at random or while watching movies. R2 and R3 agreed. R4: When I see them in a shop and feel like having them. While watching movies, like she said. R5: Whenever I feel like having them. Special occasions would be maybe birthdays or parties. Chocolates are more of a routine thing, though. Like chips or drinks. You get them whenever you feel like them. R6 agreed. How often do you have chocolates? R1: On a daily basis! R2: Twice a day. R3: Twice or thrice a week. R4: Quite a lot. Almost every day. R5: A couple of times a week, really. Maybe thrice a week. R6: Once or twice a week. Is purchasing chocolates mostly impulsive, or mostly pre-planned? Everyone: Impulsive, who would plan on buying a chocolate? What about on occasions? When youre buying chocolates for, say, someone else? R1: That has to be the only time. When Im buying chocolates for someone else, Im conscious about what brand, what price range of chocolate, I buy. I plan the decision, then. R2: When my brother is coming from abroad, hell call and ask what kind of chocolates we want. If that counts for pre-planned. R3: When Im giving them to someone else, like as a gift, or when theyre going to be served to guests or their children, something like that, then theyre planned. But not in routine life.
R4, R5 and R6 agreed. What chocolates have you tried? R1: KitKat, Dairy Milk, Snickers R2: Twix, Dairy Milk, KitKat R3: Dairy Milk, Butlers Chocolate, Toblerone, R4: Dairy Milk, KitKat, Toblerone, Snickers R5: Dairy Milk, Sonnet, Twix R6: What everyone else said, pretty much. What about local chocolates? Have you guys tried out those? R1: Yes. Off the top of my head, I can think of Paradise. R2: Now, Jubilee. R3: Dairy Milk is a local brand. Now is pretty popular too R4: Paradise, Now R5: Cloud 9, Now, Paradise You mentioned Cloud 9. What does everyone think of it? Nobody except R5 had tried it. R1, R2 and R3 said it wasnt available in the shops or stores near their houses. Have you tried out a chocolate, and decided you didnt like it? Why didnt you like it? R1: Ive never totally disregarded a chocolate, after trying it just once. Sometimes, its an acquired taste and you just have to get used to it. R2 agreed. R3: The purchasing decision depends a lot on the availability and price. Sometimes, the taste is fine, but its not worth the price. Other times, it tastes bad because its cheap. I think chocolates like Now, Ive left them because they werent good, but if they were a bit higher priced, theyd have a better taste, so they could work very well in the local market. R4: Id agree about that part, that price matters a lot. KitKat and Dairy Milk are available at a lot of prices. I didnt like the Rs. 5 Dairy Milk, but I understand that is because its so lowpriced, you cant really expect a lot of filling or something grand. R5: Most local brands. They compromise on quality, just to keep the price low. R6: Yes, Now because it was kind of hard to chew. The Rs. 10 Dairy Milk, because it isnt very fulfilling, and it melts very quickly, too. Do you try out new brands of chocolate? Or do you tend to stick to the same brand that you prefer? R1: I try out new brands frequently, but I also have certain favourites that Ive always stuck to. R2, R3 and R4 and R5 agreed. R6: I try out new brands when I get tired of the old ones, tasting the same thing over and over again can get boring. Id say I switch every one or two months. But there are definitely some brands that are just too good to give up on.
Youre all talking about some brands that you wouldnt give up on. Which are these? Everyone, more or less: Nestle, Cadbury, Mars. What was the last time you tried out a new chocolate? Most of them could not recall. R1: I tried out Cadbury Bournville recently. R2: I tried KitKat Dark. How soon do you try out a chocolate, after it comes into the market? Is that a conscious decision or an impulsive one? R1: It depends on the brand name. If the brand has a great name, or if its internationally accepted, then I try it out as soon as possible. R2 and R3 agreed. R4: The advertisement campaign has a lot to do with it. If the campaigns very classy or fun, if its something that makes me curious about the chocolate, then Ill definitely try the chocolate as soon as it hits shelves. R5: The decision is sometimes impulsive, if I walk into a shop and I see this new chocolate, I might want to try it out. But its mostly pre-planned, depending on TV advertisements or what friends recommend. R3: What friends or family says matters a lot. Sometimes, a cousin whos over will mention how good a new brand or chocolate is, and then you have to try it out. R6 agreed with R5. What are the price ranges for the chocolates you buy most often? R1: Rs. 5-20 R2: Rs 10-20 R3: Rs. 10-20, willing to spend up to Rs. 60 on chocolates, on the day I get my pocket money! R4: Rs. 10-25 generally, but Ill go above that on occasions, or when I want to treat myself. R5: Rs. 10-20, mostly. R6: Rs. 10-20 most of the times, sometimes Rs. 5 chocolates when I just want to have a quick bite. But mostly, Rs. 10-20. Does the price range change, on any occasion? How so? R1: I buy gift packs, on special occasions. Sometimes, for up to Rs. 500 R2: I do too, but for Rs. 100 to Rs. 200. R3, R4, R5 and R6 agreed that Rs. 100-200 was a suitable range to spend on chocolates for others. Have you ever tried a chocolate because of its name or packaging? R1: Yes, the brand name matters a lot. The packaging is usually secondary. R2: If a brand has great chocolates in the market, then if they come up with something new, Ill definitely try that. The ads have a lot to do with the name as well, for me, because if the ads are attractive, Id want to try out the chocolate.
R3 and R4 agreed. R4: Dairy Milks Kitna Maza Aye Rey campaign was pretty good, in terms of attracting people. R5: I think the advertisements are a really big factor in the purchase decision, at least as far as the first purchase in concerned. I tried out Candylands Fanty because it had a really catchy jingle. Where the packaging is concerned, international brands tend to be really well-packed, so its something you have in mind, when youre making purchases for gifts. R3: I look at the packaging when Im planning to give the chocolates to someone else, too. If theyre well-packed, that reflects on the quality. Local chocolates dont have very great packaging. R4: Except Dairy Milk. If you look at Now or Jubilee, the packaging is really bright. It doesnt look fun or sophisticated. R6: But the colours of the packaging can affect the purchase decision sometimes, if its too dark or too bright, I wont go for it. If the brand has a good name, though, or if its current portfolio is doing well, Ill try out its new SKUs irrespective of the packaging. So in the end, packaging is secondary. I wouldnt leave a great chocolate, just because it had bad packaging. R1, R2 and R3 agreed that taste matters more than packaging. If you could find lower-priced milk chocolates, would you go for them instead of your favourite brand? R1: Not really. I dont think the taste could be much better. R2: Price does matter, but not more than taste. If a brand can offer good quality milk chocolate for a lower price, then Ill switch. Otherwise, I wont. R3: Buying low-priced chocolate is a waste of money, if the taste isnt good. In the end, most of us buy chocolates for the taste. So even though I dont buy very expensive chocolates, Rs. 10 - 20 generally, I wouldnt buy a cheap chocolate, just to save Rs. 5. R4: Taste is more important. Especially because you can get Dairy Milk for pretty low prices, and its not a bad milk chocolate. Its fine, at Rs. 10. Everyone else agreed that they would only buy the lower-priced chocolate, if its taste was better than or at least comparable to Rs. 10 Dairy Milk. What do you think current chocolates lack? What would you change in them? R1: There isnt much filling. Especially the Rs. 5 and Rs. 10 ones, the actual quantity of the chocolate is pretty low. R2: That even happens with Dairy Milk, which is a pretty good chocolate overall. R3: Some of them have availability issues. Now is popular, but its still hard to get. R1 and R4 agreed that Now was hard to get. R5: Now is low on caramel content, too. It could be a good chocolate, if it had more caramel. R4: I think the biggest issue is the quality. You have a lot of low-priced chocolates, but I wouldnt want to buy any of them, because the taste is bad, some of them are too sweet, and some arent sweet at all. With Dairy Milk, the Rs. 10 bar is too thin. R6: They need to work on their quantity and fillings. I think availability is secondary, because if theres demand, shopkeepers will automatically start getting those chocolates. How do you define your ideal low-priced chocolate? Is there a brand right now that you find perfect? Which one?
Everyone said a Rs. 15 - 20 chocolate bar, with a reasonable quantity would do. All of them said Rs. 20 Dairy Milk was near perfect. R1, R2 and R3 said KitKat was pretty good too - not that expensive, and easily available. Is there anything youd like to add about how you consume chocolates, or what affects your decision to buy them? Any feedback or suggestions, or anything you feel we might have missed? R1: About packaging, if the packaging of an existing chocolate changes, I try it out of curiosity. R2, R3 and R4 agreed. R5: None of the chocolates weve talked about are available in our school canteen. R6: Yes! The only one there is this unattractive chocolate. I cant even recall the name. [None of the six respondents could recall the name.] R1: Id compromise on price, if the quantity and quality are great. Even though Id prefer something in the Rs. 10-20 range, if a chocolate is selling for Rs. 30, and it has a great taste, Id go for it. R2 and R4 agreed, though R4 said that the purchases would be less frequent, in this case. .
Metropolitan School Location: North Nazimabad SEC B Age group of participants: 12 - 15 years Number of participants: 6 Breakdown: 3 females, 3 males What kind of junk food do you consume? What kind of titbits do you buy, when in a shop or a store? Everyone: Chips and biscuits Probing: What else? Sweets? R1: Toffees R2: Chocolates R3: Toffees and chocolates R4: Toffees, bunties R5: Toffees and chocolates R6: Chocolates How often do you eat chocolates in a week? R1: Twice a week R2: Once every two days R3: Twice or thrice a week R4: Once in two or three days R5: Two or three times a week R6: Once every two days Do you just buy chocolates when you feel like it, or is your purchase planned? R1: When I go out to buy stuff, I pick chocolates too. R2: If I see chocolates on the shelves of a shop or store, I often buy one or two. R3: Same. I dont plan on buying chocolates. If I feel like eating one, then Ill buy it from a shop or store nearby. Or if Im at a store and I see chocolates, sometimes Ill feel like having one, and purchase it. R4: Usually, I buy them whenever I feel like it. Sometimes, though, when my younger siblings want to have chocolates, I go out specifically with the intention of buying them. R5: Its usually unplanned, but sometimes when my parents or siblings ask for them, I go out specifically to purchase chocolates. R6: I dont generally plan my chocolate purchases. If theyre in a shop and Im buying something else, I might buy them as well. However, if I really feel like having a chocolate, Ill go out just to purchase it. What chocolates have you tried? Which ones did you like the most? Everyone: Dairy Milk Everyone had tried international brands like Galaxy, Bounty and Mars In local brands, R1, R2 and R3 mentioned Jubilee, R2, R3 and R6 mentioned Sonnet. R1, R2 and R4 also mentioned Choco-dip, a biscuit dipped in chocolate.
In favourites, all of them named Dairy Milk. The unanimous response was that the taste of other local chocolates was not good, in comparison to that of international brands. What about Cloud 9? Have you tried that? R1: No. R2: Yes, it has a thick layer of chocolate. Its very good. R3: I like the taste. Its different from most of the other chocolates available. R4: Yes, Ive tried it. [Its a] new type of chocolate in the market. R5: No, I havent tried it. R6: No, I havent tried it, but Ive heard from friends that its good and plan to. Have you ever tried out a chocolate, and decided you didnt like it? Why didnt you like it? R1: Yes. In chocolates like Now, the caramel content is very low. R2 [in agreement with R1]: The fillings in Pakistani chocolates skimp on things like nuts, fruits and caramel. Otherwise, the chocolates in Pakistan are good. R3: On their own. But when you compare them to international brands, they arent that good. R4: I dont like hard chocolates. Eclairs are very hard to chew! [R2, R3 and R6 agreed that Eclairs are hard to chew, which is frustrating] R5: I dislike it when chocolates dont have a lot of filling, or are hard to bite. R6: When a chocolate tastes cheap, I dont go for it again. Chocolates should be soft and rich. Do you try out new brands of chocolate? Or do you tend to stick to the same brand that you prefer? Most of them stick to the same brands, unless there is a lot of hype about a new chocolate, thats its really good. Only R2 and R3 said they try out new brands of chocolate, on their own. What was the last time you tried out a new brand of chocolate? Most of them could not recall. R3 and R5 mentioned trying out Dairy Milk Fruits and Nuts, and said they liked it a lot. How soon do you try out a chocolate, after it comes into the market? Is that a conscious decision or an impulsive one? Everyone said that they tried out chocolates if the hype among their friends or on television was great. None of them could give a specific time. What are the prices ranges for the chocolates you buy most often? Except for R5, everyone said Rs. 10 chocolate bars. R5 said Rs. 20. All of them said that they buy chocolate bars that cost more than Rs. 25, very rarely. Do you buy chocolates on occasions? Are they different from the ones you generally buy? R1: Yes, to give to friends on their birthdays. R2: On our own birthdays, too. In our class, we buy cartons of Rs. 5 or Rs. 10 chocolates, and distribute it to the class.
R3: To give to friends. Dairy Milk has gift packs that look good, but arent too expensive. R4: On birthdays, I also distribute chocolate to the class. And my friends give me chocolates on my birthday, too. R5: On special occasions, like when someone gets a really good result, we buy chocolates in the family. Its either a collection of chocolates, or a carton or Rs. 5, Rs. 10 chocolates. R6: As gifts on birthdays. Rs. 50 or Rs. 100 chocolate packs. Have you ever tried a chocolate because of its name or packaging? R1: I tried the liquid version of Now because of its packaging. R2: There was a lot of hype about Now, due to its advertisements. The tune (Candyland ki chocolate Now, sb se achi chocolate Now) was very famous in our group. [Everyone else agreed on two points: that Nows advertisements was very catchy, and had made them want to try out the chocolate; and the thin, liquid-chocolate packet was fun for them, because they liked squeezing the chocolate out] R5: Dairy Milk has very good advertisements and packaging. Its taste is good too, though, so I tried it mostly because the taste was so good. Have you ever left a chocolate because of its name or packaging? Why? R1, R4, R5 and R6 all mentioned Mitchells Luxury and Candylands Paradise, which they tried because the packaging resembled that of Bounty. However, they left it because the quality was nowhere near it. On probing why they left it, R4: The filling tasted low-quality. R5: The coconut filling wasnt up to the mark. Didnt taste good. R1: It was very oily. What would the ideal price of your routine chocolate be? Everyone: Rs. 5 - 10 If you could find lower-priced milk chocolates, would you go for them instead of your favorite brand? R1: Yes, if the taste is good. R2: I wouldnt leave my favourite milk chocolate, because it tastes very good. If the price were lower [than Rs. 10], I dont think it could taste very good. R3, R4 and R5 preferred caramel chocolates to milk chocolates. R6: No, Dairy Milk is already available for Rs. 5 and Rs. 10. So the price ranges suit me. What do you think current chocolates lack? What would you change in them? Everyone said that the quantity of chocolates and amount of filling in by Rs. 5 and Rs. 10 chocolate bars needed to be increased. How do you define your ideal Rs. 5 or Rs. 10 chocolate? Is there a brand right now that you find perfect? Which one? R1: I like Dairy Milk, Now and Sonnet. I like thick fillings, but I dont expect that in lowpriced chocolates - they usually have very little fillings.
R2: I would like a good caramel chocolate. However, right now, Dairy Milk is the only good brand for a low price. [So I would go for it, even though it isnt caramel chocolate.] R3: My favourite is caramel chocolate. But for Rs. 5 or Rs. 10, I would prefer Dairy Milk to caramel chocolate, because the caramel chocolates available arent that good. R4: I like Dairy Milk, Now and Jubilee. Dairy Milk is my favourite. R5: Dairy Milk and Sonnet. R6: Dairy Milk, Sonnet and Jubilee. If Now had more caramel, it would be very good. Right now, I buy Dairy Milk because of its high quality. Other low-priced chocolates dont taste that good. But you cant expect that for such low prices. Is there anything youd like to add? R3: I think children prefer milk chocolate to caramel chocolate, because the caramel chocolates for Rs. 5 or Rs. 10 arent good caramel chocolates. R5: Wafer and biscuit-dipped chocolates are very nice, the kids at my home like them a lot.
Usman Public School Location: North Nazimabad SEC B Age group of participants: 12- 14 years Number of participants: 5 Breakdown: All male What kind of junk food do you consume? What kind of titbits do you buy, when in a shop or a store? R1: Chips R2: Chips, toffees R3: Toffees, jellies R4: Toffees, chips R5: Jellies, toffees, sometimes chips How often do you have chocolates? R1: Twice in a week R2: Thrice a week R3: Once a week R4: Twice or thrice a week R5: Twice a week Is purchasing chocolates mostly impulsive, or mostly pre-planned? R1: I dont plan it. When I go out with my parents, when were in a shop that has chocolates, I buy chocolates if I feel like eating them. R2: When I ask for them, sometimes my father will get me chocolates. Or when I go shopping with him, I get them for myself. R3: Its more of a routine thing. If I feel like having a chocolate and I have money, I will get it. R4 and R5 agreed that it was impulsive. R1: Sometimes, when Im purchasing it for my birthday, to distribute to class, I decide beforehand that Im going to get chocolates. R2 and R4 agreed. What chocolates have you tried out? R1: Dairy Milk, Mars R2: Dairy Milk, Bounty, Snickers R3: Dairy Milk, Now, Mars R4: Now, Dairy Milk, Snickers R5: Dairy Milk, Bounty, Now Which ones do you like the most? Why? R1: Dairy Milk is very tasty. R2: I like Now, it has a good caramel taste, but there isnt enough caramel. R3: Snickers tastes really good!
R1, R4 and R5 agreed. R5: Dairy Milk has a delicious flavour. Its not expensive either. Other chocolates [that taste good] are pretty expensive. When you say it has a nice taste, what do you mean? What kind of taste is nice? R1: Dairy Milk is sweet. There is a lot of chocolate. [Its rich] R2: Snickers has a very satisfying filling. There is a lot of chocolate in it. The amount of the filling is good and it tastes rich. R3: The chocolate in Snickers is very thick and nice. The top layer is very rich and creamy. R4: Now and Jubilee have caramel. So the taste is different from other chocolates. But theres something lacking. I think it could have more caramel. R2: Dairy Milk is the best, for a low price. Its smooth and light. Its easy to chew as well. R5: Snickers melts in the mouth. Its very rich. Do you try out new chocolates? Or do you tend to stick to the ones you prefer? R1: If I see a new chocolate in shops, Ill try it out if its cheap. R2: It has to be available. Sometimes, people talk about a chocolate, but it isnt available in the shops where I live. Or in the school canteen. R3: If there is a new chocolate in the school canteen, if its cheap, then Ill try it out. R4: I dont switch a lot. But if my friends recommend a new chocolate, I usually try it out. R5: If its cheap and easily available. Especially when theres a new chocolate in the store where I live or in the school canteen, I often have a taste. What was the last time you tried out a new brand of chocolate? R1: Last week, I tried Toblerone. R2, R3, R4: I dont remember. R5: I tried M&Ms two weeks ago. How soon do you try out a chocolate, after it comes into the market? Is that a conscious decision or an impulsive one? R1: Im not sure. If its easily available, Ill try it out if Im curious. R2: If I see a new chocolate, and the packaging is attractive, then Ill buy it if I have money. R3: It depends a lot on the packaging. Ill try it as soon as possible if my friends have recommended it. Otherwise, Ill try it if the packaging is attractive. R4 agreed with R3. R5: I dont try out new chocolates often. Only when my friends recommend them. What is the price ranges for the chocolates you buy? Which price range chocolates do you buy most often? R1: Rs. 10 or Rs. 15. R2: Rs. 10 - 20 R3: Generally, Rs. 10 chocolates. Sometimes, I also buy Rs. 20 or Rs. 25 chocolates. R4: Rs. 10 chocolates. On special occasions, Rs. 20 or above. R5: Mostly Rs. 10.
Have you ever tried a chocolate because of its name or packaging? R1: Yes, when its from a very famous company. R2: Yes, when I see a new type of Dairy Milk. I know Dairy Milk tastes good, so I like trying out new variants. R3: Dairy Milk Hazelnut, because the packaging was very beautiful. The taste is brilliant too, but it isnt easily available. So if a chocolate isnt easily available, youll leave it? R1: Yes! If it isnt available where I live, then I switch to some other brand. R2: Sometimes, if its available in the school canteen, Ill buy it from there. So its okay, even if it isnt available near my home. R3: In Rs. 5, Rs. 10 chocolates, most of them are very similar to each other. If you cant get Now, you can go for Jubilee. So its not hard to switch. Except for Dairy Milk, but that is very widely available so there isnt much of an issue there. R4: I tend to stick to the same chocolates. So it has to be cheap and easily available. R5: Yes! But if I can get it from school, that is fine as well. Youre all talking a lot about price. To what extent does that matter? Would you buy Rs. 20 chocolate, instead of Rs. 10, if it tasted much better? R1: Sometimes, but I get limited pocket money, so not often. R2: Id go for Rs. 10 chocolates, in routine, because I cant buy Rs. 20 chocolate several times a week. I dont get that much pocket money. R3: Id compromise on price, if the taste was very great. But then Id buy it less often. R4: In school, I also have to buy other food items, like chips or biscuits, because chocolates dont fill ones stomach. So I would prefer to have Rs. 10 chocolate. Because a lot of Rs. 10 chocolates taste fine. Like Dairy Milk. R5: I have to spend money cautiously, so price matters. Rs. 10 would be better. If you could find lower-priced milk chocolates, would you go for them instead of your favourite chocolate? R1: Ill try it once. If the taste isnt that good, I wont try it again. R2: If its available and friends recommend it. R3: Ill try it, but if the taste isnt good, I wont go for it again. Because Rs. 10 Dairy Milk is fine. [The new chocolate] should be thicker than that. Otherwise, Dairy Milk is fine. R4 and R5 agreed. What do you think current chocolates lack? What would you change in them? R1: The taste is fine. The real problem is with the quantity. R2: They should increase the quantity. Even the Rs. 10 Dairy Milk, which is pretty good, is very thin. R3: The amount of fillings should be greater. Snickers is good, because the filling is so rich. R4 and R5 agreed that the quantity needed to be increased, especially in the low-priced category. How do you define your ideal low-priced chocolate? Is there a brand right now that you find perfect? Which one?
R1: Dairy Milk is perfect. If they increase the quantity, that would be great. R2: Now for caramel, and Dairy Milk for pure chocolate. R3: I like Now very much. It has a nice taste. If they can increase the contents, the caramel in it, it would be great. Jubilee tastes nice too. R4: Paradise has amazing filling. Something like that. R5: Dairy Milk is the best in the Rs. 10 category, even though its rather thin. Now and Jubilee are good, but not when compared to Dairy Milk.
Government Boys Middle School Leemo Gabol Location: Gulshan-e-Iqbal SEC C Age group of participants: 13 - 14 years Number of participants: 5 Breakdown: All male What kind of junk food do you consume? What kind of titbits do you buy, when in a shop or a store? R1: Chips, fries R2: Chips, chewing gums R3: Fries, burgers R4: Chips, fries, burgers R5: Biscuits What kind of sweets do you buy? Everyone mentioned chocolates. On what occasions do you eat or purchase chocolate? Everyone: To gift to friends on special occasions or birthdays. How often do you eat chocolates in a week or day? R1: Once a day R2: Once or twice in a week R3: Once or twice in a week R4: Thrice a day R5: Three times a week Is purchasing chocolates mostly impulsive, or mostly pre-planned? R1: I generally buy them when going home from school. R2: Same. R3: I buy chocolates whenever I feel like having one. Its usually not planned. R4: I get chocolates when going home from school, from the school canteen. Its usually planned, because I buy them when I feel like having chocolates. Sometimes, when I see a new chocolate on shelves, Ill buy it to see what it tastes like. R5: I have chocolates whenever I feel like having them. I generally pick them up on my way home, or when my younger siblings ask for them. What chocolates have you tried out? Everyone: Dairy Milk and Eclairs. R2 mentioned Sonnet, R4 mentioned Now and Jubilee. Which ones did you like the most? Which is your favourite? Everyone: Dairy Milk.
Which ones dont you like? R2: Sonnet, because of the nuts and almonds. They dont taste good. [R3 and R4 agreed] What are the price ranges for the chocolates you buy? Which price range chocolates do you buy most often? R1: Rs. 5 - 10 R2: Rs. 5 - 10, but sometimes Ill buy Rs. 25 chocolate bar. Thats not very often, though. R3: Rs. 5 - 10, because those are the most affordable in my pocket money. R1: On my birthday, I buy the Dairy Milk carton with lots of Rs. 5 Dairy Milk, to distribute to my friends. [R2 agreed.] R4: Mostly Rs. 5 - 10 R5: Rs. 10 - 20 Have you ever tried a chocolate because of its name or packaging? R1: Yes, if friends are talking about a chocolate a lot, I will try it out too. R2: If friends or cousins talk about it, or if the packaging is very attractive. R3: If the chocolate isnt very popular, I will try it out if I see it and the packaging is very good. R4: If everyone is talking about it. R5: If the packaging is colourful, then the packaging makes me try chocolates out. If you could find lower-priced milk chocolates, would you go for them instead of your favourite brand? Everyone: Only if they were better than Rs. 5 Dairy Milk. What do you think current chocolates lack? What would you change in them? R1, R3: Most of them are too sweet. R2: The extreme sweetness hurts teeth. But Dairy Milk is good [its sweet but it doesnt hurt the teeth] R3: Some of them melt very quickly, too. In summers, you cant keep a chocolate in your bag because it will melt. R4: If caramel chocolates like Now had more caramel. R5: White milk chocolates would be more preferable. There arent many in the market. How do you define your ideal low-priced chocolate? Is there a brand right now that you find perfect? Which one? R1: It should be rich. Dairy Milk is good R2: Chocolates with wafer are good. Perk is very good, because its affordable. It isnt very hard, either [as compared to some other wafer-containing chocolates]. R3: It should be milk chocolate with fair quantity. Rs. 5 Dairy Milk has very little amount of chocolate in it. Rs. 10 Dairy Milk is good, but very thin. R4: For caramel chocolates, they should have more caramel. None of the caramel chocolates right now are nice. The low-priced ones taste bad.
R5: White milk chocolate that is easy to chew. North Star Public School Location: North Karachi SEC C Age group of participants: 10 - 12 years Number of participants: 6 Breakdown: 3 females, 3 males
What kind of junk food do you consume? What kind of titbits do you buy, when in a shop or a store? R1: Chocolate! R2: Chocolates, chips R3: Chocolates, toffees, jellies R4: Jellies, toffees, chips R5: Toffees, chocolates, jellies R6: Chips, chocolates On what occasions do you eat chocolate? How often? R1: Once a week R2: Once a week R3: Two times a week R4: Once a week R5: Once a month R6: Once or twice a week Is purchasing chocolates mostly impulsive, or mostly pre-planned? R1: Pre-planned. R2: Usually I go out to buy chocolates, when my parents ask. R1: I buy chocolates when my parents ask, too. Sometimes, the little kids at home ask for chocolates as well. Then I sometimes go out to shop for them. R3: Its generally planned. However, sometimes when Im buying groceries or something else, and I see a chocolate that I like, I will buy it. R4: Its generally a conscious decision. I know Im going to a shop to purchase a chocolate. R5: I plan what chocolate to buy. Sometimes, I save up for it. R6: If I see a chocolate I like and I feel like having it, Ill buy it. I dont plan it very much. What brands of chocolate do you like? R1: Dairy Milk R2: Dairy Milk, Now, Jubilee R3: Dairy Milk, Paradise, Sonnet R4: Dairy Milk, Now, Paradise R5: Dairy Milk R6: Dairy Milk, Sonnet
Have you ever tried out a chocolate, and decided you didnt like it? Why didnt you like it? R1: I like all chocolates. R2: Teddy Bear! The quality is very low. R3: Teddy Bear isnt sweet at all. Its almost bitter. It doesnt taste like chocolate. Most other chocolates are very good. R4 agreed with R2 and R3. R5: I like all the chocolates Ive tasted. R6: Chocolates are good, when theyre sweet. Do you try out new chocolates? Or do you tend to stick to the same brand that you prefer? R1: I try out new chocolates when my friends recommend them. Or if I see them in the market, and get curious. R2: When my cousins or friends talk about a chocolate they like, I will go and purchase it too, to see what it tastes like. I dont want to waste money trying out all the new chocolates, because I dont get a lot of pocket money. R3: I purchase new chocolates when they come to the market, if theyre not very expensive. Like Rs. 5 or Rs. 10 chocolates, Ill buy the new ones to see the taste. R4: I dont buy a new chocolate, when it comes to the market. But I will, if my friends urge me to. R5: I dont try out new chocolates. Generally, I only buy chocolates that I like. R6: I stick to the chocolates I like, unless my friends recommend a different one. Then I will try it out, at least once. If I really like the taste, I will buy it again. What was the last time you tried out a new brand of chocolate? Most of them couldnt recall when they had had a new chocolate. R3 said that he had tried a chocolate called Top Milk the week before. How soon do you try out a chocolate, after it comes into the market? R1: When I see a new chocolate, if I have money to spare at that moment, I will try it out. R2: I generally dont try out new chocolates, unless my friends or cousins are talking about it, and they say that it tastes good. R3: Within one week. R4: I generally dont try out new chocolates. R5: If I see a new chocolate, Ill try it that day, or in a few days, whenever I feel like having a chocolate. Especially if its in the school canteen. You mentioned trying out chocolates that are in the school canteen. Do you guys often purchase chocolates from the canteen? Everyone: Yes, usually we buy our chocolates from the school canteen in lunch time, or when going home. What are the prices ranges for the chocolates you buy most often? R1: Rs. 5 - 10
R2: Rs. 5 - 10 R3: Rs. 5 - 10 R4: Mostly Rs. 5 chocolates, because I dont get a lot of pocket money. R5: Rs. 5 chocolate packs. If I buy more expensive chocolates, then I have less money to spend, because my pocket money isnt very much. R6: Rs. 10 Dairy Milk. Have you ever tried a chocolate because of its name or packaging? Everyone mentioned Dairy Milk, because its advertisements on TV were catchy, and because all their friends talked about it. Have you ever left a chocolate because of its name or packaging? Why? Everyone said that they had never left a chocolate because of its name or packaging, if the taste was good. What would the ideal price of your routine chocolate be? Everyone: Rs. 5 - 10 If you could find lower-priced milk chocolates, would you go for them instead of your favorite chocolate? R1: If I know about the company, or if its a smaller packet from an existing brand, then yes. R2: Id do the same. If its a new chocolate altogether, I will ask my friends what they think of it. R3 and R4 said the same, that they would ask their friends if it were an all-new brand. R5: If its a lower-priced chocolate of an old brand, a company I already know about, I will try it out. Otherwise, I wont. R6: I will, but if the taste isnt good, then I would rather buy the high er priced one. Because Rs. 10 Dairy Milk is very good. So I would stick to that, if the lower-priced chocolate tastes bad. What do you think current chocolates lack? What would you change in them? None of them wanted to change anything. They all seemed to like Dairy Milk very much. However, R3 and R4 said that Diary Milk was too thin. How do you define your ideal low-priced chocolate? Is there a brand right now that you find perfect? Which one? Everyone named Dairy Milk, and said it was perfect. R1, R2 and R6 said its taste was the best in the market. R1 and R2 also pointed out that it had a pure, milky taste. R4 liked that it wasnt hard to chew.
Blind Tests Taste Ratings (on a scale of 1-5, with 1 being worst and 5 being best) Chocolates Now Dairy Milk 4 4 3 5 2 5 2 5 2 4 4 5 3 5 3 4 1 5 1 4 1 5 2 5 1 3 3 4 2 4 3 3 3 4 3 5 3 5 1 5 3 4 2 5 3 5 4 5 2 4
Respondents 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Age Group 8-11 12-15 16-18 19-21 8-11 12-15 12-15 8-11 19-21 19-21 19-21 19-21 16-18 12 - 15 16-18 19-21 8 - 11 8-11 8-11 16-18 12-15 12-15 8-11 12-15 16-18
Cloud 9 5 4 4 3 5 5 4 3 4 3 3 2 4 4 3 5 2 5 5 4 4 5 5 5 4

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Based on information provided by the contact person, Mr. Saad Ahmed

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Rs. 10 - 15 Rs. 16 - 20 Rs. 21 - 25 Rs. 5 - 9 Total

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Group 1 Packaging Group 2 Total

.44 .56 1.00

Exact Sig. (2tailed)

.88 .12 1.00 .08 .92 1.00 .28 .72 1.00

When do you or your family buy chocolates?

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When younger siblings ask or insist

Routine - whenever I feel like it 0 10 20 30 40 50 60 70 80

Who or what generally influences your decision to buy chocolates?

Inferences& Findings (In Layman Terms)

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With 1 representing least important; and 5, most important.

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Russell, M. (2010). In the spotlight - Mars' global restructuring. Just-Food.

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Education of Chief Earner Occupation of Chief Earner

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APPENDIX C Questionnaires Market Survey

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Retailer Interview Questionnaire

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APPENDIX D Snapshots of Data Gathered Consumer Survey

When buying chocolates, you like them to be

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Your prefer your chocolates to

What is the price range of the chocolates you generally buy?

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How often do you consume an average chocolate pack, per week?

Do you frequently change brands of chocolate or stick to the same ones?

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