CHAPTER-I

INTRODUCTION

Consumers play a very vital role in the health of the economy local, national or international.
The decision they make concerning their consumption behavior affect the demand for the basic
raw materials, for the transportation, for the banking, for the production; they effect the
employment of workers and deployment of resources and success of some industries and
failures of others. Thus marketer must understand this. In order to become a successful
marketer, he must know the liking or disliking of the customers. He must also know the time
and the quantity of goods and services, a consumer may purchase, so that he may store the
goods or provide the services according to the likings of the consumers. Based on the attribute
that different buyer seeks while making purchase decision, marketers has to device appropriate
marketing mix to position their product in the targeted market(s).

Through this descriptive study I have tried to analyze the various attribute that different buyer
seeks while making purchase of chocolates of different size and quantity for different purposes
altogether with significant differences in favorite brand; flavor; price and place of buying etc.
Also, I have tried to examine the various degree of relationship that exist between the different
attributes of the product that consumer favors and the brand loyalty that consumer have toward
his liked brand. Also main emphasis is laid to find out what results in brand loyalty and is this
relationship is significant with changing marketplace.

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Chocolate the very word makes your mouth water. Chocolate is more than just a food: it’s a state
of mind.

History of chocolate:

The origin of chocolate can be traced back to the ancient Maya and Aztec civilizations in
Central America, who first enjoyed “chocolati” a much-prized spicy drink made from roasted
cocoa beans. Throughout its history, whether as cocoa or drinking chocolate beverage or
confectionary treat, chocolate has been a much sought after food.

Types of Chocolates

Depending on what is added to (or removed from) the chocolate liquor, different flavors and
varieties of chocolate are produced. Each has a different chemical make-up, the differences are
not solely in the taste.

1. Unsweetened or Baking chocolate is simply cooled, hardened chocolate liquor. It is used

primarily as an ingredient in recipes, or as a garnish.

2. Semi-sweet chocolate is also used primarily in recipes. It has extra cocoa butter and sugar
added. Sweet cooking chocolate is basically the same, with more sugar for taste.

3. Milk chocolate is chocolate liquor with extra cocoa butter, sugar, milk and vanilla added.
This is the most popular form for chocolate. It is primarily an eating chocolate.

2
Categories of Chocolates

Commercial Chocolates are available in the following forms:

1. Bars or Moulded Chocolates

2. Counts

3. Panned Chocolates (Gems)

4. Éclairs

Bars or moulded chocolates (like Dairy Milk, Truffle, Amul Milk Chocolate, Nestle Premium,
and Nestle Milky Bar) comprise the largest segment, accounting for 37% of the total chocolate
market in volume terms. ... Wafer chocolates such as Kit-Kat and Perk also belong to this
segment. Panned chocolates accounts for 10% of the total chocolate market Wafer chocolates
such as Kit-Kat and Perk also belong to this segment. ..

Form of Consumption:

a. Pure Chocolates

b. Toffees

c. Cakes & Pastries

d. Malted Beverages

e. Wafer Biscuits & Baked Biscuits

f. Chocolate Desserts

3
Major Players & their Market Share:

The major players in the Indian Chocolate Industry are:

1. Cadbury’s India Limited

2. Nestle India

3. The Gujarat Co-operative Milk Marketing Federation (GCMMF) – AMUL

4. Ferrero Rochers

4
 COMPANY PROFILE

1. CADBURY COMPANY

The Story of Cadbury

Early Days - A One Man Business

Birmingham 1824

John Cadbury was one of ten children of Richard Tapper Cadbury, a prominent Quaker who had
moved to Birmingham, England from the West Country in 1794.

In 1824, 22-year-old John Cadbury opened his first shop at 93 Bull Street, next to his father's
drapery and silk business in the then fashionable part of Birmingham.

Apart from selling tea and coffee, John Cadbury sold hops, mustard and a new sideline - cocoa
and drinking chocolate, which he prepared using a mortar and pestle.

Cocoa and drinking chocolate had been introduced into England in the 1650s but remained a
luxury enjoyed by the elite of English society. Customers at John Cadbury's shop were amongst
the most prosperous Birmingham families, the only ones who could afford the delicacy. Cocoa
beans were imported from South and Central America and the West Indies.

Experimenting with his mortar and pestle, John Cadbury produced a range of cocoa and
chocolate drinks, the latter with added sugar. The products were sold in blocks: customers
scraped a little off into a cup or saucepan and added hot milk or water.

John Cadbury had a considerable flair for advertising and promotion. "John Cadbury is desirous
of introducing to particular notice 'Cocoa Nibs', prepared by himself, an article affording a most
nutritious beverage for breakfast," announced his first advertisement in the Birmingham Gazette
in March 1824.

5
He soon established himself as one of the leading cocoa and drinking chocolate traders in
Birmingham. The popularity and growing sales of John Cadbury's cocoa and drinking chocolate
of 'superior quality' determined the future direction of the business.
In 1831, John Cadbury rented a small factory in Crooked Lane not far from his shop. He became
a manufacturer of drinking chocolate and cocoa, laying the foundation for the Cadbury chocolate
business.

Cadbury Brothers Ltd

The business became a private limited company - Cadbury Brothers Limited - in 1899 following
Richard Cadbury's sudden death at the age of 63.
George Cadbury became chairman of the new board and his fellow directors were Barrow and
William A. Cadbury, sons of Richard and two of his own sons, Edward and George Cadbury
Junior.

By 1899, the Bournville factory had trebled in size with more than 2,600 employees. With the
formation of the limited company, Bournville entered a new era as the younger members of the
Board introduced new ideas - analytical laboratories, advertising and cost offices, a sales
department, works committee, medical department, pension funds, education and training for
employees.

The Bournville factory site became a series of factories within a factory, as everything needed
for the business was produced on site, including tin box pressing plants, carton making units, a
design studio and printing plant.

This policy continued until well after the Second World War when the rationalisation of the
business to mainstream activity - production and marketing of chocolate confectionery- led to the
use of outside specialised suppliers for ancillary items.

Brands of Cadbury

Dairy Milk and variants

5 Star
6
 Treat perk gems

Temptation

Celebrations

2. NESTLE COMPANY

Nestle India

Nestle’ India is a subsidiary of Nestle’ S.A. of Switzerland. The company insists on honesty,
integrity and fairness in all aspects of its business and expects the same in its relationships.

Nestle India- Presence Across India

Beginning with its first investment in Moga in 1961, Nestlé’s regular and substantial
investments established that it was here to stay. In 1967, Nestlé set up its next factory at Choladi
(Tamil Nadu) as a pilot plant to process the tea grown in the area into soluble tea. The
Nanjangud factory (Karnataka), became operational in 1989, the Samalkha factory (Haryana), in
1993 and in 1995 and 1997, Nestlé commissioned two factories in Goa at Ponda and Bicholim
respectively. Nestlé India is now putting up the 7th factory at Pant Nagar in Uttaranchal.

Nestle’ Story

Nestlé was founded in 1867 on the shores of Lake Geneva in Vevey, Switzerland and its first
product was “Farine Lactée Nestlé”, an infant cereal specially formulated by Henri Nestlé to
provide and improve infant nutrition. From its first historic merger with the Anglo-Swiss
Condensed Milk Company in 1905, Nestlé has grown to become the world’s largest and most
diversified food Company, and is about twice the size of its nearest competitor in the food and
beverage sector.
Nestlé’s trademark of birds in a nest, derived from Henri Nestlé’s personal coat of arms, evokes
the values upon which he founded his Company. Namely, the values of security, maternity and
affection, nature and nourishment, family and tradition. Today, it is not only the central element
of Nestlé’s corporate identity but serves to define the Company’s products, responsibilities,
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business practices, ethics and goals.
In 2004, Nestlé had around 247,000 employees worldwide, operated 500 factories in approx. 100
countries and offered over 8,000 products to millions of consumers universally. The Company’s

transparent business practices, pioneering environment policy and respect for the fundamental
values of different cultures have earned it an enviable place in the countries it operates in.
Nestlé’s activities contribute to and nurture the sustainable economic development of people,
communities and nations. Above all, Nestlé is dedicated to bringing the joy of ‘Good Food,
Good Life’ to people throughout their lives, throughout the world.

Nestle’ Brands

 Milky Bar

 Bar One

 Crunch

 Kitkat

 Munch nutties

3. AMUL COMPANY

Marketing Mix of Amul Company

Product in the marketing mix of Amul – Amul has a very very strong product portfolio. Amul
product portfolio is comprised mainly of Dairy products. Amul butter, Amul cheese and Amul
ice cream are cash cows for Amul as they have the major market share in their product category.
Amul ice cream is amongst the top 10 ice cream brands of India.

Price in the marketing mix of Amul – Amul has a strategy of low cost pricing. Some may call
it penetrative pricing. But penetrative pricing strategy is used when the market has a high level of
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competition and a player wants to establish itself in the market by giving low prices. However, in
the case of Amul, when Amul started, there were no national players and the dairy market was
unorganized. During the introduction stage itself, Amul had a vision to provide their products to
end customers at the best affordable rates. And the same vision is in place even today.

Today also, you will find that Amul butter, milk and cheese are available at affordable prices
keeping in mind the end customers. You may call these products costly, but the cost has nothing
to do with Amul’s strategy. Remember that transportation costs as well as storage and

distribution costs are very high in FMCG. Thus, as the cost of transportation, storage and
distribution has increased over the years, so has the cost of Amul products gone up. But
considering their value for the average India consumer, these products are still priced at an
affordable rate.

Place in the marketing mix of Amul – Amul has a massive distribution network because its ice
creams, milk, butter and cheese is found practically everywhere. As it is a FMCG product, Amul
follows the methodology of breaking the bulk. The initial factory output is in bulk. Later on this
bulk becomes smaller and smaller and finally one individual slab of butter or scoop of ice cream
is sold at the retail place.

There are two different channels through which Distribution happens in Amul. One is the
procurement channel which is responsible for collection of Milk through dairy co operatives. The
other is the distribution channel which is responsible for distributing the finalized product to the
end customers.

The distribution is as follows.

Amul >> Carrying and forwarding agent >> Distributor >> Dealer / Retailer / Amul Shoppe >>
Customer Amul >> Modern retail

Thus there is a lot of transportation involved for all of Amul’s products. However, the
distribution channel of Amul ensures that the products reach every nook and corner of India.

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Promotions in the marketing mix of Amul – Amul is responsible for one of the most unique
and longest running outdoor campaign as well as one of the most known outdoor advertising
characters – The Amul girl. We would like to take this opportunity to specially thank Mr
Eustace fernandes, the creative brain behind the sweet girl. But we should know by now that the
Amul girl is hardly sweet or cute. She is known to be the most naughty advertising girl ever.
Amul hoardings mainly feature the current news and are used to take a tongue in cheek
viewpoint at current happenings. However, each advertisement hits the nail on the head.

The major reason for Amul’s absence in hardcore advertising is that Amul does not want to give
away margins in advertising its products. As per Amul, their maximum budget for advertising is
1% of the turnover. Above and beyond that will directly affect the cost of the product. And the
major reason for Amuls strong presence in the market is its excellent quality combined with the
affordable price. Thus, overall promotions will always be low for Amul except for the outdoor
advertising of Amul butter.

This concludes the marketing mix of Amul. The bottom line is that we love that an Indian brand
like Amul has reached such staggering heights and that we are a part of the time when such a
white revolution took place.

1. FERRERO COMPANY

Marketing Strategy of Ferrero company

Category: - Food

Sector: - Food and Beverages

Tagline/ Slogan: - Share something special

USP: - Ferrero Rocher is whole roasted hazelnut encased in a thin wafer shell filled with hazelnut
cream and covered in milk chocolate

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 Segment: - People looking to have high quality premium chocolate

Target Group: - All age groups upper-middle and upper class people

Positioning: Ferrero Rocher is the premium chocolate brand used for the perfect gift

HISTORY

Ferrero is an Italian manufacturer of branded chocolate and confectionery products and it is the
second biggest chocolate producer and confectionery company in the world. It was founded in 1946
in Alba, Piedmont, Italy, by Pietro Ferrero, a confectioner and small-time pastry maker who laid the
groundwork for Nutella and famously added hazelnut to save money on chocolate. The company saw
a period of tremendous growth and success under Pietro's son Michele Ferrero, who in turn handed
over the daily operations to his sons. His son Pietro (the founder's grandson), who oversaw global
business, died on April 18, 2011, in a cycling accident in South Africa at the age of 47.

PRODUCTS

Ferrero produces several lines of confectionery goods under various brand names, as well as the
chocolate-hazelnut spread, Nutella. The company has produced Nutella since 1964. The production of
Nutella uses one-quarter of the world's annual hazelnut supply.
It also produces the line of Ferrero branded chocolate products, including Pocket Coffee,Mon
Chéri Confetteria Raffaello, Ferrero Küsschen and the Ferrero Prestige line, which comprises three
different brands of pralines: Ferrero Rocher, Ferrero Rondnoir, and Garden Coco.
Ferrero's Kinder brand line of chocolate products include Kinder Surprise, Kinder Joy, Kinder
Chocolate, Kinder Happy Hippo,Kinder Maxi, Kinder Duplo, Kinder Country, Kinder
Délice, and Kinder Bueno.
The company also produces Tic Tac candy,available in mint, cinnamon, and fruit flavors, along with
sugar free versions.Other Ferrero products include Raffaello, Giotto,Fiesta Ferrero, Hanuta chocolate
hazelnut-filled wafers and Gran Soleil frozen desserts,which won the company an innovation award in
March 2011.Ferrero has been producing Thorntons products since acquiring the company in 2015

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CONSUMER BUYING BEHAVIOUR TOWARDS CHOCOLATES

Chocolate consumption is gaining popularity in India due to increasing prosperity coupled with
a shift in food habits, pushing up the country's cocoa imports. Chocolate market in India is
pegged at Rs 2,000 crore and is growing at the rate of 18 - 20 per cent per annum. The global
chocolate market is estimated around $80 billion. The Indian chocolate market is seen growing
at a compounded annual growth rate of 15-20%. The Indian chocolate market is thought to be
worth some R1,500 crore and has been hailed as offering great potential for Western chocolate
manufacturers as the market is still in its early stages. Over 70% of chocolate consumption
takes place in the urban areas. Chocolate consumption in the rural areas is negligible in India.
Chocolate market is a highly concentrated market, with Cadbury having 70 per cent and Nestle
around 20 per cent. The two giants have been instrumental in building up the chocolate market
in India with huge investments in product development, advertising and brand building.
Modern trade constitutes about 10% of the overall chocolate category, or roughly Rs 320 crore,
according to Nielsen. Of this, brand Cadbury Dairy Milk has a share of 35%, while Bournville
and Silk together account for 18%.

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 CHAPTER-II
LITERATURE REVIEW

N Ramya, Akshaya C, Haripriya M in their study “A study on consumer perception towards

Cadbury chocolate with special reference to Coimbatore City” published in year 2014 -
concludes all chocolates brand of “CADBURY DAIRY MILK CHOCOLATE” should take
necessary promotional activities to increases their demand by introducing new flavour in small
quantities of pack. As cost was not a matter fact, the producers can with stand the chocolates
market in Coimbatore District. Again variety of Advertisement through television media will
increase the marketability of dairy milk chocolates. Consumer perception towards Cadbury
dairy milk chocolates in Coimbatore district was affected by Brand, Quality, Flavour, Taste and
Source of awareness upon the consumer perception factors. From the analyze of consumer perception
towards Cadbury dairy milk chocolate, the researcher concluded that, the consumer level of
satisfaction are good.

Assistant Professor in University College,K.U.K. in his study “Foreign Brands like Cadbury
and Nestle has an edge over Indian brand like Amul” published in 2015 States that as we
calculate with the help Likert scale And the Value comes out for Cadbury brand is 144 . But if we
talk about Nestle Brand the value comes out is 125. And for Amul this value comes out to be 90.
Which grades foreign brands to be Higher as compare to Indian brand of milk chocolate bar. Another
conclusion of the study is that change in price has a substantial effect on the buying behaviour of
consumer for milk chocolate bars as the calculated value in Chi-Square test was .437and the table
value comes out to be 15.58 which shows that calculated value is lesser than table value, hence the
null hypothesis is selected that there is positive relation between change in price level and purchasing
decision of the consumers for milk chocolate bars.

13
Svit Koren conducted a study on “THE IMPACT OF CONSUMER ATTITUDES
TOWARDS CHOCOLATE PRODUCTS WITH SUSTAINABILITY LABELS ON
BUYING PROCESS” published in 2015 says that We live in a time when sustainability
issues play an important role in a consumer’s life. A significant number of consumers in the
world are indeed willing to pay extra money for chocolate products with sustainability labels.
Lotz et al. have stated that previous studies have shown that sustainability labels might yield a
positive effect which is transferred to the product. In our study we found out that respondents
from urban areas, aged between 27 and 35, with higher income, healthy lifestyle and positive
attitudes towards sustainability issues, are more willing to buy sustainability-labelled chocolate
products. According to ranking of the determinants of consumers’ willingness to purchase
these products, the price plays the most important role. This fact was expected because in our
online survey took part students from Slovene HEIs who were mostly not employed and who
had quite low income compared to average monthly income in Slovenia. 706 We are
convinced that the majority of consumers in Slovenia have positive attitudes towards chocolate
products with sustainability labels.

Ekata Mahajan in her study “Consumer Preference and Perception Chocolates in North
Karnataka” published in year 2016 says that a significant number of consumers in the study
are indeed willing to pay extra money for chocolate products with sustainability. Further in
this study we found out that respondents from city areas with healthy lifestyle and positive
attitudes towards willing to buy better quality chocolate products. The consumer preference
and perception for Cadbury chocolate is with reference to the behavior of respondents towards
price, taste etc explored GST haven’t impacted significantly. Analysis of the product, pricing,
availability, quality, taste, advertising and packaging of Cadbury chocolates show is the leader
of the market.

Dr. S.Mythili1 , G.Sowmiya2 in their study “Consumer Behaviour and Brand Preference
of Chocolate in Thanjavur District” published in year 2016 says that Chocolates which were
considered expensive once have now become affordable by one and all. Most of the chocolate
brands in India produce chocolates in different sizes that are priced according to their sizes.
Chocolates like Diary Milk and Five Star can be got for just Rs.10. Chocolates in India are
slowly and steadily substituting the traditional Indian sweets. Due to the increasing levels of

14
social consciousness people prefer gifting well wrapped chocolate packets rather than sweets
on occasions and festivals. Taking advantage of this situation the top chocolate brands in India
are now concentrating on the quality and are introducing well packaged chocolates for specific
occasions.

D.Shanthi in his study “A comparitive study on consumer preference towards nestle and
cadbury chocolates with special reference to erode district” published in year 2017 says
that a survey of the people has been conducted to know the liking pattern of the two products
Cadbury and Nestle. It is observed that overall people like to eat Cadbury brand rather than
Nestle. It is concluded that mostly people preferred Dairy Milk of Cadbury due to its
flavour/taste, quality and image and due to its hard form. Some people often like to have a
chocolate with good flavour, quality and crunchiness so they are going towards Kit Kat and
Munch of Nestle due to its taste and crunchiness.

15
 CHAPTER-III
METHODOLOGY

OBJECTIVES OF THE STUDY

Following are the objectives of the study:-

To understand the consumer behavior and to identify the level of customer satisfaction
towards different brands of chocolates.
To study different factors effecting brand loyalty.

SCOPE OF THE STUDY

The scope of the study restricts itself to the analysis of consumer preference, perception and
consumption of chocolates. The study is limited to only four brands of chocolates- Cadbury,
Nestle, Amul and Ferrero. The scope is also restricts itself to Delhi region only.

SOURCES OF DATA COLLECTION

Primary data

As the name suggests, are first-hand information collected by the surveyor. The data so collected are pure
and original and collected for a specific purpose. They have never undergone any statistical treatment
before. The collected data may be published as well. The Census is an example of primary data.

Secondary data

Secondary data are opposite to primary data. They are collected and published already (by some
organization, for instance). They can be used as a source of data and used by surveyors to collect data
from and conduct the analysis. Secondary data are impure in the sense that they have undergone
statistical treatment at least once.
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 Data is one out of two types, either primary which is collected by the researchers or secondary
data which is gathered by other researchers. Project consist both secondary data and primary
data.
Universe/Population: The universe consists of all survey elements that qualify for inclusion in the
research study. The precise definition of the universe for a particular study is set by the research
question/objectives, which specifies who or what is of interest. The universe may be individuals,
groups of people, organizations, or even objects. For example, research about voting in an upcoming
election would have a universe comprising all voters.

In my project, population is Young people from age 18 to 50

Sampling Unit: It is a unit from where a respondent is selected.

In this project, sampling unit is college, school and households.

Sample Size: The characteristics of whole population are difficult to study in most of the researches.
In order to best analyse the results, sample is taken from the population which best describes the
characteristics of the population. A sample is a sub group of the population selected for the study and
best describes the population.

The sample size of this project is 50 because it is difficult to cover the whole population so this size
would be giving fair justice to the survey.

Sampling Technique: A sampling technique is the name of the technique or identification of the
specific process by which the entities/ respondents of the sample have been selected. There are
basically two type of sampling methods- probability sampling methods and non- probability sampling
methods which are further divided into different types.

The technique used is Convenient Sampling because picking people randomly is the best method.

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 CHAPTER-IV
DATA ANALYSIS AND INTERPRETATION
Data Analysis

This chapter is data analysis, in this chapter the data collected through questionnaires was
analysed. As the primary research method was survey, Questionnaires was distributed online via
Google forms.This chapter will first show the sample and analyse the targeted sample. Then
according to research objectives the finding was discussed and analysed.

18
1. For whom it is purchased?

Particulars Frequency Percent

For Self 10 20%

For child 20 40%

For gifting 15 30%

Occasionally 5 10%

FOR WHOM IT IS PURCHASED?

45

40

35

30

25

20 Series 1

15

10

0
FOR SELF FOR CHILD FOR GIFITNG OCCASIONALLY

Interpretation:

20% of the respondents buy chocolates for their self consumption, 40% buy for their children,
30% buy for gifting purposes and the rest buy it occasionally.

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2. What motivates you to buy chocolate?

Particulars Frequency Percent

TV commercials 2 4%

Print Ads and Hoardings 20 40%

Social Media 10 20%

Sales man 3 6%

Celebrity Endorsement 15 30%

What motivates to buy chocolates

45
40
35
30
25
20 What motivates to buy
chocolates
15
10
5
0
TV Print Ads and Social Media Sales man Celebrity
commercials Hoardings Endorsement

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3. Which brand of chocolate do you prefer?

Frequency Percent
Valid Amul 3 6.0

Cadbury 36 72.0

Nestle 4 8.0

Ferrero 7 14.0

Total 50 100.0

BRAND
80

70

60

50

40
BRAND
30

20

10

0
AMUL CADBURY NESTLE FERRERO

Interpretation:-

Most of the respondents prefer Cadbury chocolate. After Cadbury preferred brand is Ferrero and
least preferred brand is Amul.

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4. Important attribute of the chocolate?

Particulars Frequency Percent

Taste 25 50%

Availability 10 20%

Price 10 20%

Packaging 5 10%

Important attributes of the chocolates

60

50

40

30 Important attributes of the

chocolates
20

10

0
Taste Availability Price Packaging

Interpretation:

50% of the respondents prefer taste as an attribute of the chocolate, 20% of the respondents
prefer availability, 20% of respondents prefer price and the rest prefer packaging.

22
5. Which pack do you purchase?

Frequency Percent

Valid Small Pack 20 40.0

Big Pack 26 52.0

Family 4 8.0
Pack

Total 50 100.0

FAMILY PACK PACK

1%

SMALL
PACK
43%
BIG PACK
56%

Interpretation:

26 respondents purchase big pack, 20 respondents purchase small pack and 4 respondents
purchase family pack of chocolate.

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6. How frequently do you purchase the chocolate?

Frequency Percent
Valid Once a 3 6.0
fortnight

Daily 2 4.0

Weekly 22 44.0

Monthly 18 36.0

Quarterly 5 10.0

Total 50 100.0

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Interpretation:-

22 respondents purchase the chocolate weekly, 18 respondents purchase the chocolate monthly
and 5 respondents purchase the chocolate daily.

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 7. A) Do you like to change the brand frequently?

Frequency Percent
Yes 27 53.0

No 23 47.0

Total 50 100.0

Interpretation:-

Out of 50 respondents, 27 respondents says they change the brand frequently and 23 respondents
says they do not change the brand frequently.
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B) If yes, select the factors for change

Frequency Percent
Taste 12 44%
Price 4 14%
Offers and Discounts 6 22%
Availability 5 18%

Factors for change

50
45
40
35
30
25
20 Factors for change

15
10
5
0
Taste Price Offers and Availability
Discounts

27
 8. If the price of your brand is reduced, will you buy more of it?

Frequency Percent
Valid Yes 19 38.0

No 12 24.0

Maybe 19 38.0

Total 50 100.0

IF PRICE REDUCED, WILL YOU BUY MORE?

100%

80%

60%

40%

20%

0%
YES NO MAYBE

IF PRICE REDUCED, WILL YOU BUY MORE?

Interpretation:-

Out of 50 respondents, 19 respondents will buy more if the price of the brand is reduced, 19
respondents says that they do not have any idea what they will do and 12 respondents will not
buy more if the price of the brand is reduced.

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 9. What according to you is a reasonable price of chocolate?

Frequency Percent
Valid Below 10 2 4.0

10-20 18 36.0

20-30 19 38.0

above 30 11 22.0

Total 50 100.0

Interpretation:-

Out of 50 respondents, 19 respondents says 20-30 is the reasonable price of chocolate, 18

respondents says 10-20 is the reasonable price of chocolate and 2 respondents says below 10 is
the reasonable price of chocolate.

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 10. If your preferred brand is not available what will you do?

Frequency Percent
Valid Postpone your purchase 10 20.0

Change the retail shop 15 30.0

Switch over the another 25 50.0

brand

Total 50 100.0

Interpretation:-

Out of 50 respondents, 25 respondents will switch over to another brand, 15 respondents will
change the retail shop and 10 respondents will postpone the purchase.

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 CHAPTER-V
FINDINGS AND CONCLUSION

FINDINGS
 20% of the respondents buy chocolates for their self consumption, 40% buy for their children,
30% buy for gifting purposes and the rest buy it occasionally.
 Most of the respondents prefer Cadbury chocolate. After Cadbury preferred brand is Ferrero
and the least preferred is Amul.
 50% of the respondents prefer taste as an attribute of the chocolate, 20% of the respondents
prefer availability, 20% of respondents prefer price and the rest prefer packaging.
 26 respondents purchase big packs, 20 respondents purchase small packs and 4 respondents
purchase family pack of chocolates.
 22 respondents purchase chocolates weekly, 18 respondents purchase chocolates monthly and
5 respondents purchase chocolate daily.
 27 of the respondents change their brand frequently and that tool mainly due to taste and good
offers available and 23 do not change their brand frequently.

LIMITATIONS

 Some of the people were not responsive.

 Possibility of error in data collection because many of the respondents may have not
given a answer to the questionnaire.
 Sample size is less to represent the whole population.

 The time period of research was short.

 Respondent’s behaviour may be casual.

 Financial resources are not available.

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 CONCLUSION

A survey of the people has been conducted to know the liking pattern of the two products
Cadbury and Nestle. It is observed that overall people like to eat Cadbury brand rather than
Nestle. It is concluded that mostly people preferred Dairy Milk of Cadbury due to its flavor/taste,
quality and image and due to its hard form. Some people often like to have a chocolate with good
flavor, quality

For promotional offers, company should go for free gifts rather than going for other ways.
Company should concentrate more on television for advertisement, as mostly people get
attracted through television only and crunchiness so they are going towards Kit Kat and Munch
of Nestle due to its taste and crunchiness. It is thus concluded from the facts collected that mostly
people refer to buy big pack of their favorite chocolate, and sometimes some of them go for
small and family pack.

The Indian Chocolate Industry is a unique mix with extreme consumption patterns, attitudes
beliefs, income level and spending. At one hand, we have designer chocolates that are consumed
when priced at even Rs 2500/kg while there are places in India where people have never even
tasted chocolates once. Understanding the consumer demands and maintaining the quality will be
essential. Companies will have to keep themselves abreast with the developments in other parts
of the world.

Pricing is the key for companies to make their product reach consumers’ pockets. Right pricing
will make or break the product.

Economical distribution of the products will also be equally important. The companies’
strategies should focus on driving sales through a right product mix, efficient materials
procurement, reduced wastages, increased factory efficiencies and improved supply chain
management. There’s an immense scope for growth of chocolate industry in India -
geographically as well as in the product offering. The Indian Chocolate Industry is destined to
grow and will do so in the future.

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 SUGGESTION

 Consumers’ perception towards Nestle Company’s packaging is not good as they are least
satisfied with it so the company should focus on that while Cadbury should concentrate on the
shape of a chocolate.

 Mostly people get attracted through television only so Company should concentrate more on
television for advertisement.

 Consumer is worried about the taste so more focus should be there on taste rather than other
factors.

 People are unsatisfied with the price and quantity of chocolate so companies should
concentrate in this regard also.

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 BIBLIOGRAPHY

http://en.wikipedia.org/wiki/preference

http://www.chocolatereview.co.uk

http://www.cadbury.co.nz/carnival/index.htm

http://www.nestle.com

http://www.cadburyindia.com

http://www.packagingtechnology.com/…/cadbury4.html

https://www.researchgate.net/publication/259230003_Project_analysis_in_chocolate_confect
ionery_industry_evidence_from_Macedonia
www.Agencyfaqs.com

www.Equitymaster.com

www.indiantelevision.com

www.myiris.com

www.ibef.org

www.thehindubusinessline.com

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 ANNEXURE
Q.1 Name:
Q.2 Age :
Q.3 For whom the chocolates are purchased?
 For self
 For child
 Gifting
 Occasionally

Q.4 What motivates you to buy chocolates?

 Visual Ad
 Display Ad
 Family & friends
 Sales man
 Celebrity endorsement

Q.5 which brand of chocolate do you prefer?

 Amul
 Cadbury
 Nestle
 Ferrero

Q.6 Important attribute of chocolate?

 Taste
 Availability
 Price
 Packaging

Q.7 Which pack do you prefer?

 Small pack
 Big pack
 Family pack

Q.8 How frequently do you purchase the chocolate?

 Once a fortnight
 Daily
 Weekly
 Monthly
 Quarterly

Q.9 Do you like to change the brand frequently?

 Yes
 No
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Q.10 If the price of your brand is reduced, will you more of it?
 Yes
 No
 Maybe

Q.11 What according to you is the reasonable price of chocolates?

 Below 10
 10-20
 20-30

Q.12 If your favourite brand is not available, what will you do?
 Postpone your purchase
 Change the retail shop
 Switch over another brand

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