CONSUMER BEHAVIOR PROJECT PROPOSAL

Project Title: Study of consumer behaviour and attitude towards chocolates Introduction: Chocolates as a product have a rich history, with their origins dating back to the Mayan and Aztec civilizations. With time, the methods of consumption as well consumer perceptions about chocolates have changed drastically. They are not just a utilitarian product but also have certain hedonistic attributes. People associate to chocolates not just because of their taste but also other sensory attributes such as smell, emotional stimuli such as happiness and festivity etc. In India, the chocolate market is estimated to be around 4,500 crore growing at 25% per annum. Cadbury is the market leader with 70% market share. The per capita consumption of chocolate in India is 300 gram compared with 1.9 kilograms in developed markets such as the United Kingdom. Over 70 per cent of the consumption takes place in the urban markets. Rationale: Consumer preference towards chocolates in India has been changing continuously. Tradition of gifting sweets has given way to less expensive and better packaged chocolates on festive occasions such as Diwali and Raksha Bandhan. Rising income levels and rapid development in rural markets have led to an increase in the per capita consumption of chocolates from 50gm in 2005 to 300 gm in 2011. The advent of health conscious and innovative products in the food and beverage market has led to increased consumption. Innovation and diversification in this industry has led many new and foreign players to enter the Indian market. The regulatory environment, too, has become conducive for foreign players to operate in the country. Due to the above factors, there is an increased level of competition in the market and thus arises the need to study the evolving consumer preferences towards chocolates. Objectives: Through our study of the consumer behaviour towards chocolates, we aim to gain an insight into the following issues: To study the factors affecting consumption pattern of chocolates. 1. Age and Gender 2. Price 3. Ingredients 4. Occasion of Consumption 5. Type of Chocolate- Milk or Dark To study the motivating factors affecting the purchase behaviour of chocolates 1. Promotional Mix 2. Quality 3. Taste 4. Brand Image 5. Packaging and Display 6. Health consciousness To study the factors affecting post purchase consumer satisfaction. 1. Taste 2. Quality 3. Packaging- Ease of Usage To understand consumer perception and preference towards different chocolate variants offered by Cadbury

Research Design and Methodology: The research design we will be employing for our study has both exploratory as well as descriptive components. The study will comprise of the following aspects: Secondary Research: Preliminary research will be conducted to understand the dynamics of the chocolate industry in India and present a Porters 5 forces Analysis based on online research and literature review. This will be followed by a SWOT analysis of Cadbury based on available data sources. Primary Research: On the basis of the aforementioned secondary research, the following methods will be used to gain an in-depth understanding of the consumer preferences. The study is a cross sectional study because the data will be collected at a single point of time. For the purpose of present study a related sample of population will be selected on the basis of convenience.

1. Survey: We propose to conduct an online survey with nominal, ordinal and interval scale based questions to test consumer preferences in taste, quality, brand loyalty etc. 2. Personal Interview: To gain further insights into the decision making process of purchase and consumption of a chocolate, we propose to conduct personal interviews of 5-7 participants from our sample population. This will also enable us to find out the factors governing consumer perceptions towards different variants offered by Cadbury. 3. Data Analysis and Results: Using various statistical techniques such as Hypothesis Testing and ANOVA, we aim to come up with the extent to which different factors affect consumer behaviour towards chocolates. Timeline: We aim to finish our analysis over a 6 week timeline with the proposed breakup: Secondary Research 1 week Primary Research Questionnaire Design 1 week Data Collection 2 weeks Data Analysis 1 week Compilation of Findings 1 week Submitted by: Mayank Lodha: PGP28110 Mansi Dhamija: PGP28261 Deep Banerjee: PGP28207 Haoreithing Khangrah: PGP28197