A research study on: Customer preference for chocolates in comparison from traditional sweet.

Significance
India is an emerging market for unique, high-end food concepts where the sale of chocolates has been increasing in the country o er the years! with a ma"or chunk of sales in the urban areas at #$% along with a rapidly growing rural market. Chocolate once being considered as an indulgence product in the country, has witnessed an increase in its consumer base.

&b"ecti ity 'o study the growth of chocolate in Indian market 'o study the growth of traditional sweets 'o study comparison of preference for chocolates Introduction
Companies admit that the market for chocolates and biscuits as gifts is still growing in the country and may take a few years to catch up with traditional sweets. (owe er, these products ha e found fa our with corporate in the last number of years and despite the lean economy, it is e)pected that there will be an upsurge in sale of corporate 'he industry body in an analysis on *Indian Chocolate +arket* concluded that the consumption of chocolates is steadily increasing in urban and semi urban areas, registering a compound annual growth rate,CA-./ of 01 per cent and is e)pected to cross .s #,1$$ crore by 0$21. 'he Indian Chocolate market, which is currently poised at o er .s 3,1$$ crore, has a bright future prospect due to rising income le els and attracti e packing coupled with pricing which is suitable to e ery pocket, said sur ey. As per sur ey report, the per-capita consumption of chocolates has also increased from 1$gm in 0$$1 to 4$$ gm now and there is a lot of scope to grow e en further. Commenting on the de elopment, ASS&C(A+, Secretary -eneral, 5 S .awat said, 6Ahead of the festi al, the demand of chocolates is increased by 41% than the last year in urban areas due to rising awareness about adulterated and high-priced traditional sweets a ailable in the market.6 Chocolate +arket has a long way to go in India as increasing awareness, rising disposable

income, shifting in consumer preference, and rapid de elopment in rural markets shows there is a huge untapped market that the chocolate manufactures can capture. 'he consumption of chocolates is steadily increasing in urban and semi urban areas, registering a compound annual growth rate , CA-./ of 01% and is e)pected to cross .s #,1$$ crore by 0$21, according to the estimates by ape) industry body ASS&C(A+. 'he Indian chocolate market is currently poised at o er .s 3,1$$ crore, according to an analysis of *Indian Chocolate +arket* by 'he Associated Chambers of Commerce and Industry of India ,ASS&C(A+/. 6Ahead of the festi al, the demand of chocolates is increased by 41% than the last year in urban areas due to rising awareness about adulterated and high-priced traditional sweets a ailable in the market6, said 5 S .awat ASS&C(A+, Secretary -eneral while releasing the findings of the chamber*s analysis. 'he key growth factors are tradition of gifting sweets in India, shift in consumer preference from traditional mithai to chocolates, rising income le els and attracti e packing coupled with pricing which is suitable to e ery pocket, adds +r. .awat. 6'he per-capita consumption of chocolates has also increased from 1$gm in 0$$1 to 4$$ gm now and there is a lot of scope to grow e en further,6 says the analysis. 'he industry caters to a ariety of consumers with o er 71% of the consumption being in the urban market. (owe er, o er the years, chocolate is increasingly becoming popular among Indians and gradually replacing traditional sweets. 'he ma"or key challenges that the chocolate market is facing in India are inflationary pressures on raw material prices, lack of go ernment initiati e, high entry barriers due to duopolistic market and price-sensiti e consumer, adds the paper. Chocolates competing with other categories like soft drinks, snacks and be erages for a share of the consumer*s wallet, but modern trade and other factors like liberalisation of the economy, growing income of middle class and macro-economic conditions ha e had a positi e impact on consumer spending6 , said .awat. Facts & figures Chocolate market is estimated to be around 3,1$$ crores growing at 01% per annum Cadbury is the market leader with #$% market share 'he per capita consumption of chocolate in India is 4$$ gram compared with 2.8 kilograms in de eloped markets such as the 9nited :ingdom

& er #$ per cent of the consumption takes place in the urban markets +argins in the chocolate industry range between 2$ and 0$ per cent, depending on the price point at which the product is placed Chocolate sales ha e risen by 21% in 0$$# to reach 3$,$$$ tonnes 'he global chocolate market is worth ;<1 billion annually Consumer trends +ithai- the traditional Indian sweats is getting e)pensi e and substituted by chocolates among upwardly mobile Indians. Instead of buying sweats on .aksha =andhan, 5iwali, people prefer to buy chocolates. 'he range and ariety of chocolates a ailable in malls seems to be growing day by day, which leads to lot of impulse sales for chocolate companies Chocolates which use to be unaffordable, is now considered mid-priced. 5esigner chocolates ha e become status symbols. Some of the key growth drivers 2. 'radition of gifting sweets 0. Shifting in consumer preference ,from traditional *mithai* to chocolates/ 4. Increasing awareness - demand for sugar-free and diet chocolates among consumers 3. >)pansion potential due to lesser penetration 1. .ising income le els and rapid de elopment in rural markets. Traditional sweets 'he hamper of sweetness this festi e season is seeing a shift back to a more traditional mi) but with a twist. +ithai makers are introducing new fla ours to pique the taste buds of customers thought to ha e been lost to foreign confectionery brands. In fact, some retailers are saying that the Indian *mithai* has already made a strong impression in the gifting market, with makers of snacks and ready-to-eat food items such as (aldiram, I'C and Ca in:are using fla our and packaging strategies similar to those of foreign chocolate brands. ?hile (aldiram and Ca in:are ha e complemented their e)isting range of *mithais* and desserts with chocolate, pineapple and sugar-free ariants, conglomerate I'C and 5elhi-based dairy products maker +other 5airy ha e launched traditional sweets in gift packs. 6Indian sweets were

always the fa ourite for gifting, but were losing fa our to chocolates due to lack of inno ation and hygiene, which is where companies ha e upped their ante,6 said I'C*s di isional chief e)ecuti e ,foods/ Chitran"an 5ar. 6Consumers want options, which is where packaged sweets ha e made a dent this year.6 5e endra Chawla, president of @uture -roup, the country*s largest retail conglomerate, said there is a clear preference for Indian sweets and dry fruits. 6-ift-ready packs, which are high on hygiene and inno ation in fla ours appealing to the Indian palette, ha e successfully engaged the consumers,6 Chawla said, adding domestic companies are using the same strategy that helped chocolate makers gain market share in India. @uture -roup said it is seeing a re ersal of trend of the last three years, with traditional sweets selling 7$%-<$% more than chocolates in gift packs. (owe er, hypermarket chain Spencer*s .etail said demand for chocolates for gifting has risen by o er 3$% this season, compared with a 01% growth in the traditional sweets segment. 6&ur obser ation was that consumers were turning away from traditional sweets because of adulteration. ?e hope to get consumers back to buying mithai,6 said +other 5airy*s business head for dairy products, Subhasis =asu. I'C has also launched three ready-toeat *halwas* under its :itchens of India brand, while Ca in:are has rolled out *soan papdi* in chocolate, orange, elaichi and pineapple fla ours under its -arden brand. +other 5airy, too, has launched *gulab "amuns* and *milk cake*. Ca in-:are chairman C: .anganathan said a twist in *mithai* fla ours was needed to woo younger consumers away from chocolates. According to Spencer*s .etail president and C>&, +ohit :ampani, while imported chocolates ha e started to de elop a pull factor e en in tier-II markets where Indian sweets account for almost #$% of gifting, the entry of companies like I'C in the traditional sweets segment and strengthening of business by regional companies are going to lead to a close fight. Aot to be left behind, foreign chocolate brands Bindt, @errero, +ars, Snickers and Cadbury ha e launched gift packs at multiple price points C enabling customisation branding for corporate bookings C and are undertaking in store acti ations. @or instance, Swiss brand Bindt entered India this year with packs ranging from .s 8$ to .s 0,1$$. A @errero India spokesperson said the company is focusing on all channels to dri e growth this 5iwali. 'he company is aiming to grow at a faster pace than the 0$% growth rate in the premium chocolate segment in India, the spokesperson said. Comparison @rom @+C- ?orld D

Cadbury was the first to try to capture a share of the sweet tooth of Indians. It first launched a festi e pack back in the early 288$s to switch consumers from mithai to chocolate. A ery western concept then, it has finally gained momentum now. Cadbury launched theRaksha bandhan pack to tap into the younger segment, then inno ated and introduced the Cadbury Celebrations .ich 5ry @ruits Collection D a combination of dry fruits and chocolate D ideal forDiwali gifting. Amul E Aestle also soon followed suit with their range of chocolates. 'he campaigns like Pappu Pass Ho Gaya, Kuch Meetha Ho Jaayeand Shubh a!ambh ha e tried to create new occasions for consumption and attempt to change the positioning of Cadbury from a regular chocolate to sweets ,Meetha/. In 0$$8, =ritannia launched "Shubh Kaamnayein#, a range of gift packsfor Raksha bandhan. 'he gift packs contain arious biscuits and cakes like =ritannia =ourbon, Fim-Fam and fruit fla ored cakes like =erry-Cherry and Gineapple. 'hey also launched a Christmas range with a ariety of cakes. Diwali and $nam are also e)pected to see acti e participation by =ritannia. 'hen there are others like Coca Cola and GepsiCo who introduced gift packs for multiple product lines. In 0$$#, GepsiCo introduced a range of 5iwali gifting packs of its popular CS5 brands. "%o make this Diwali e&citin', the packa'in' is desi'ned in such a way that one can make it into a Kandeel ,lantern/ o! use it as a stencil (o! c!eatin' att!acti)e Ran'oli patte!ns*# according to Gunita Bal, >)ecuti e 5irector-+arketing, GepsiCo India. Coca Cola also offered coke cans in similar packaging. GepsiCo now has a AimbooH 5iwali pack with 1 bottles of AimbooH and 4 decorated diyas ,traditional lamps/. It also launched its top-selling snack brand :urkure in a diwali pack. Garle Agro introduced Appy and (ippo in gift packs for Rakhi this year. @rom Specialty Stores D Chennai-based Cookie +an says that 4$% of its turno er comes fromDiwali sales. "%he pack is customi+ed and can include up to se)en p!emium )a!ieties o( chocolates and chocolate,dipped cookies, apa!t (!om othe! )a!ieties,# says Sandeep Sewal, Cookie +an senior ice-president, which bagged orders of Diwali gifts from nearly 4$$ companies in 0$$8. Griyanka -upta, owner of 5elhi-based Chocolics, which makes custom-made premium chocolates, says "%he!e has been a bi' chan'e in demand (o! chocolates in the last (i)e yea!s* People a!e inte!ested in 'i(tin' chocolate bo&es not -ust (o! (esti)als but also (o! occasions like weddin's and baby showe! pa!ties* %!aditional sweets ha)e taken a back seat*# Aow to the other question D Are other food items replacing e en the modern sweetmeatsI Are people finally getting more health and weight-conscious and opting for healthier alternati esI Gossibly amongst a certain segment. Aot only are these healthier foods substituting other products in the kitchen cabinet, but are also becoming popular gifting options.

Surely the manufactures ha e noticed this and ha e launched gift packs. Some e)amples include 5abur .eal, 'ropicana, etc. In 0$$7, 5abur introduced four gift packs of .eal and .eal Acti e "uices. ".e ha)e int!oduced -uices as 'i(table items keepin' in mind the '!owin' consciousness o( people towa!ds (itness and health/#said +r Amit =urman, C>&, 5abur @oods Btd. 'his range has now grown to 27 ariants. 5abur claims sales of its range of "uice gift packs in 0$2$ festi e season are almost 3$% more than the pre ious year. "%!opicana holds 012 sha!e in the Pepsi b!ands sold this 3(esti)e4 season,# +r. (omi =attiwala, JG-+arketing, GepsiCo India, said, as a proof to the growing importance of "uices as gift items. Also, :elloggKs introduced a festi e season pack for their brand of Chocos cereal. 5el +onte branded processed foods and be erages un eiled 5el +onte gift packs for 5iwali in 0$$8 comprising of its range of packaged fruits, ketchup E sauces, whole kernel corn, Italian pastas, table oli es and oli e oil. +ethodology .>S>A.C( +>'(&5S I will prefer inter iew and filling of questionnaire to ensure and encourage frank responses to the questions. ?hile framing a questionnaire I will try to list a series of questions, which can pro ide me the needed information. @or study purpose I also keep in mind the respondents understanding capacity, ability to recall the information and his e)perience limits. I will not include those questions, which can ha e misconceptions and promote non-co-operation. SOURCE OF !T! Source of data is classified in to two categories: 2. Grimary data 0. Secondary data "R#$!R% !T! Grimary data do not e)ist in records and publication. 'he researcher has to gather primary data afresh for the specific study under taken by him. +arket researchers are interested in primary data about demographicL socio economic characteristics, attitude L opinions L interests, moti ation and beha ior. 'hree basic means of primary data: 2. &bser ation 0. Sur ey

4. >)periment SECO& !R% !T! 'he data referred to those, which gathered for some other purpose and are already a ailable in the firm initial records and commercial, trade or go ernment publications are secondary data. Sources of secondary data 2. Gublished of secondary data. 0. -o ernment publication. 4. SpecialiHed libraries 3. -eneral library research sources Sample Si'e( I used 1$ respondents for my research report. $ET)O OF !T! CO**ECT#O&( @or getting the results of my research I used method which is questionnaire method that is under primary data A questionnaire ,also known as sel(,administe!ed su!)ey/ is a type of statistical sur ey handed out in paper form usually to a specific demographic to gather information in order to pro ide better ser ice or goods. 'he questionnaire was in ented by Sir @rancis -alton Muestionnaires ha e ad antages o er some other types of sur eys in that they are cheap, do not require as much effort from the questioner as erbal or telephone sur eys, and often ha e standardiHed answers that make it simple to compile data. (owe er, such standardiHed answers may frustrate users. Muestionnaires are also sharply limited by the fact that respondents must be able to read the questions and respond to them. 'hus, for some 5emographic groups conducting a sur ey by questionnaire may not be practical. A questionnaire consists of many types of questions, like direct question, in direct question, open-ended question ,free answer question/, and close ended question. In this report open and close-ended questions are used. 'he method was discussed questioning. >ach person was asked a set of question in gi en order and answer is limited to a list of alternati e. 'he studies are descripti e in nature. It is connected to study the present state of affair as it e)ists. 'he open study tries to e)plore the system at present and report on it. +hy ,uestionnaire methods has -een adopted

2. It is ersatile 0. Ideas related to the problem and its solution can be finding by asking the people in ol ed in arious industries. 4. :nowledge, opinions, and intention of people in ol ed can be easily founded. 3. It is usually faster and cheaper than other methods. It in ol es control o er the data gathering acti ities as compare to other method.

=ibliography 2. www.aygrt.isr".net 0. www.slideshare.net 4. www.kpmg.com 3. www.goggle.com 1. www.goodreturns.in 7. www.articles.timesofindia.indiatimes.com #. www.fnbnews.comLarticleLdetnews <. www.agrie)change.apeda.go .inL