A

PROJECT REPORT
On
Consumer Behavior towards chocolate Brands

DECLARATION

(Signature of Candidate)

CERTIFICATE

It is certified that the project entitled CONSUMER BEHAVIOR TOWARDS

CHOCOLATE BRANDS submitted

PREFACE

The customer is king. Finally ten years after the liberalization of Indias economy began.
The market place has, suddenly become tightening competitive. Not only have new
players stormed into the country, there are more brands available then ever before in
every segment of every market. The customer today buys only that which meets his/her
every desire. This demands more intimate understanding of the customer by the Smart
Companies the study has been divided into six parts.
First part contains briefly the CHOCOLATES, history of chocolates, along with the
development of passion for chocolates.
Second part presents an overview of evolution of chocolates, chocolate industry-growth
and competition in various categories. Major players in this industry.
Third and Forth part includes a brief profile about the consumer behavior & Research
Methodology for the study. This part describes the term consumer behavior and its
importance.
Part five deals with the Analysis & Discussion. Important findings have been discussed at
last for better understanding.
Lastly, Part six namely Findings & Recommendation highlights the major findings
during the course of the study. Accordingly, recommendations have been made.

CONTENTS

Introduction to the study

Objectives of the study
Research Methodology
A. Problem Statement
B. Research Design
Area of Study
Objective of the Study
C. Data Collection
Data Collection Methods
Data Collection Techniques
D. Sampling Design
Sampling Unit
Sample Size
Sampling Techniques
Limitations of the study
Analysis & Interpretation
Findings
Conclusions
Suggestions
Annexure
Questionnaire
Bibliography

INTRODUCTION TO THE STUDY

INTRODUCTION

This project is about preference of the consumers towards FMCG products i.e. chocolates
in domestic market (in special context of nestle, Cadbury & Amul chocolates)
The story of chocolate began in the new world with the Mayans, and also the word
chocolate comes from the Mayan word xocoatl, and the word cocoa from the azlec
cacahuati, who drank a dark brew called cacahuaquchtl. Later, the Aztec consumed
chacahoua and used the cocoa bean for currency. In 1523, they offered cocoa beans to
Cortez, who introduced chocolate to the world, where it swiftly became a favorite food
among the rich and noble of Europe.
From the beginning, turning raw, bitter cocoa beans into what one 17 th century writer
called the only true food of the gods has been a fine art, a delicate mixture of alchemy
and science. Centuries ago it was discovered that fermenting and roasting the beans could
create an almost otherworldly flavor. In 1875, after years of trying, a 31-year-old candy
maker in vevey named Daniel peter figured out how to combine milk and cocoa power.

The ancient Aztecs believed chocolate to be the FOOD OF THE GOD

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Firstly, there is a need to know about the chocolatethat what is chocolate. Why
chocolate is the most popular dessert flavoring around.

MEANING OF CHOCOLATE:1. A preparation of the seed of cocoa, roasted, husked, and ground (without
removing any of the fat), often sweetened and flavored, as with vanilla.
2. A beverage or confection made from this.
3. Dark brown.
4. A divine substance inspiring passion in those who consume it.

ORIGIN OF CHOCOLATE

The word chocolate comes from the Mayan word xocoatl, and the word cocoa from the
Aztec cacahuatl. In Mexico, the beverage was called chocolath, from lath (water) and
choco. Supposedly the Spaniard found the Mexican word har to pronounce and called it
cacao. Chocolath, chocolath, chocolath. Puff puff. See? I did it! (But lets stick to cocoa)
*LoI*

From cocoa to chocolate

Sorting, clearing, frying, crushing, grinding is the only small part of stages of production
cycle transforming cocoa beans in chocolate, which we eat.
Chocolate is really the unique product, tasty, highly nutritive (about 550 kkal in 100gm of
a product), capable to be stored by years without change of properties. It contains 50-55%
of carbohydrates, 32-35% of fat, 5-6% of fibers. And also tannin substances (4-5%),
stimulators-the bromine and caffeine (1-1.5%), microelements Na, K, Mg, P, Fe and
vitamins B1, & B2.

HISTORY OF CHOCOLATE

The discovery of cocoa was only a first step in the direction of chocolate. The Mayas
were the first to cultivate the cocoa bean for the fruits it yielded. They used the beans as
an ingredient in their favorite chocolate drink xocotlatl.
Legend suggests that the first beans came out of paradise and lent wisdom and power to
the person that ate them. For obvious reasons, the use of cocoa was kept to a minimum by
the emperors.
Before the Spanish explorers discovered the New World, chocolates and other exotic
foods were totally unknown in Europe. Columbus was the first European to become
acquainted with cocoa, but he wasnt exactly impressed.
During one of his conquest in the New World he met the Aztecs. For many generations,
they drank an infusion of grilled seeds and spices. This mixture tasted disgusting and it
also contained cocoa beans. The Aztecs adopted the ides of cocoa consumption from the
Mayas.
However the conquistadors pizzaro and, in particular, Cortes did show interest in the
bean. Fernando Cortes reached the east coast of Mexico in 1519. as an honored guest of
Montezuma (Aztec emperor and inveterate chocolate fanatic) he was offered xocotlatl a
small portion of aromatic chocolate drink mixed eith vanilla, pepper and other herbs.
For the Mayas, cocoa beans were very important, not only were they a poplar means of
exchange, they also had a religious value. The Mayas sacrificed cocoa beans at the
funerals of the upper class.

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EVOLUTION OF CHOCOLATE

Chocolate is created from the cocoa bean. A cacao tree with fruit pods in various stages
of ripening

(1753-1849)

1753

Swedish biologist Carolus Linnaeus revealed his feeling for chocolate

while attending to the task of classifying organisms in a binomial system.
To the chocolate
tree he gave the botanical name of theobroma cacao. Cacao refers back to
the original native language. Theobroma is a Latin term that translates to
food of the gods.

1765

In 1765 the Englishman James Watt invented the steam engine and in doing
so set in motion what we now refer to as the industrial revolution. Around
the same time in the colony of Massachusetts one of the first machine
oriented chocolate manufacturing businesses was being established. The
partnership of John Hannon, an

Irishman, and Dr. James Banker of the

Massachusetts colony formed the company Hannons Best chocolate.

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Through the use of an old grist mill, cacao beans were ground into
chocolate liquor, pressed into cakes of paste for eventual use as a
chocolate beverage. During a routine trading mission to the West Indies,
Hannon was presumed dead when his ship failed to returned. The name of
the company subsequently changed to the Baker Company. It was not until
1927 that the Baker family sold their business to General Foods.
1774

The mysterious rumors that surrounded the death of pope clement XIV,
give credence to the notion that chocolate had become a favorable way of
distinguish poison. The pope died after consuming a chocolate beverage,
which also killed the unwritten confectioner who shared in the
consumption. Through there is no proof, the Jesuits are suspected to have
arranged his demise. The pope had been in opposition to the Jesuits, and
they were known chocolate drinkers. So the conclusion, while not
provable, is not unfounded.

1819

Francois Louis Cailler opened a chocolate factory on lake Geneva near

Vevey. He used machinery he had developed himself, making him a
pioneer in the evolution of Swiss chocolate.

1828

Chocolate maker and chemist Coenraad Van Houten developed the process
now known as Dutching. His patented invention involved the removal
of close to half of the cocoa butter from chocolate liquor through the use
of hydraulic pressure. The removal of the cocoa butter resulted in a
commensurate decrease in fat content. Instead of fifty percent, the hard
cake that was let from this process had a fat content of only Twenty-Five
percent. The cake could then be crushed into a powder. The use of alkaline
salt allowed for easier mixing with warm water. It also made the color
darker and had the pleasing affect of a less bitter taste. This invention
would be the key in the development of chocolate as a confection.

1847

Joseph Fry was a Quaker who began manufacturing chocolate under the
name of Joseph Fry & Sons. While the original Joseph Fry left the
company to become a type founder, his sons continued the business. One
of his sons, another Joseph Fry, purchased a Watts steam engine in 1789 to
more efficiently grind cacao. A great-grandson of the original Joseph Fry
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led the business toward the development of edible chocolate. Hoe found
that by remixing some of the cocoa butter back into the processed
Dutched cocoa powder and adding sugar, a paste was formed that could
be pressed into molds. The effect of this was a chocolate bar that gathered
as much attention as chocolate beverages had.
1849

Ghirardelli, an Italian native, planned early on having a chocolate

business. However, he traveled first to Uruguay and then to Peru before
setting in California in 1849. Though he had been attracted by the Gold
Rush, he soon learned that there was more reliable profit to be had selling
tents to other gold miners than in actual mining. He used the money he
saved and started the Ghirardelli chocolate factory, which is still located in
San Francisco.
(1850-1986)

1850s

Prime Minister William Gladstone, in an effort to boost the economy,

lowered the taxes on cacao beans, allowing British manufacturers to
expand their market.

1860

British FDA is founded. A British journal called the Lancet discovered that
many chocolate manufacturers were employing various methods of
Cutting chocolate with something less expensive. One report revealed
that cocoa powder was being thinned with brick powder. Stirred to
respond, the British government passed its first food and drug act in 1860.

1868

John Cadbury was another Qyaker who became interested in chocolate

production. In 1824 he had opened a Grocery store in Birmingham,
England. Cadbury featured cacao beans that he would roast and grind
himself. In time he realized the interest and profitability in changing his
focus to manufacturing of chocolate. Cadbury became so renowned that he
received a Royal Warrant in 1854 to be the single cocoa and chocolate
provider for Queen Victoria. Richard and George Cadbury took over their
fathers business and in 1866 purchase a Van Houton machine. They began
to market Cadbury cocoa powder. By 1868, the Cadbury Company
produced the first box of chocolate candies. Their business continues to
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flourish, and in 1879 they took over the Birmingham suburb of

Bourneville. The factory they built there supported a town, providing both
worker housing and recreational facilities.
1879

During the same period that Cadbury was developing into a formidable
chocolate force, a Swiss chocolate manufacturer was struggling to find a
way to combine chocolate with milk. Daniel Peter could not produce
something with a smooth consistency because the milk could be made
more shelf-stable for use a baby formula. The product of Nestles
experimentation was a sweetened condensed milk. The new milk, which
had lesser water, was mixable with chocolate and made a product that
would not spoil easily. Henri Nestle and Daniel Peter formed a company
in 1879. Today, the largest food company in the world is Nestle.

1879

A conching machine was created in 1879 that allowed for the smoothest
chocolate yet. Rudolf Lindt used a concave granite bed where chocolate
liquor, sugar, and milk if desired, would be ground back and forth by
heavy rollers. Lindt named his chocolate Fondants because their texture
was as smooth as the popular creamy candies. The process of conching
soon became a part of common chocolate manufacturing. In addition, the
friction of the rollers produced a heat that made roasting an unnecessary
steps. Today, the rollers in conching machines are kept at a controlled
temperature for an even higher quality.

1893

Milton Suavely Hershey was a Mennonite from Pennsylvania who owned

a caramel manufacturing plant. When he visited the world Colombian
Exposition in Chicago his interest was initially to purchase and use
machines to make chocolate covered candies. His interest changed course
after visiting Europe and researching the many chocolate manufacturers
there. Hershey then decided to focus his business on chocolate production
and in 1900 he introduced to the world the milk chocolate Hershey bar. It
was followed five years later by the Hershey kiss. With business
expanding beyond expectation, Milton Hershey took over the town of
Derry Church, Pennsylvania and renamed it Hershey. Thought he also
developed a Hershey, Cuba around a sugar mill he owned, Milton Hershey
14

was focused out of Cuba in1959 when Castro gained control. Today
Hershey, Pennsylvania is an impressive tourist attraction.
1908

The triangular Toblerone chocolate bar was created and launched into
market by Swiss chocolate maker Jean Tobler.

1913

Swiss chocolate maker Jules Sechaud invented the chocolate filled

bonbon.

1929

At the end of the twentieth century Cellas Confections, on West

Broadway and canal, was a part of many factories that made up New York
Citys confectionary district. In 1929 their candy factory began
manufacturing chocolate-covered cherries. Today, while the other
confectioneries have disappeared, Cellas remains.

1936

Philip Silverstein owned a candy company on Delancey Street in New

York City. In 1936 he created a thick, nut and raisin filled chocolate bar,
known as the Chunky Bar.

1940s

As the United States geared up for a war in Europe, Militon Hershey

suggested an addition be made to the standard soldiers D-Ration. The
American military began to include three 4 ounce, 600 calorie chocolate
bars in each D-Ration. While from todays perspective this may seem
odd, the Aztecs had used chocolate for the edification of their own
warriors. In addition to lifting the energy and spirits of the troops during
World War II, the chocolate bars became associated with peace, as
malnourished holocaust survivors were rescued by American troops
offering chocolate.

1986

When Jim Walsh left his life as an adventures executive in Chicago, he

decided to move to Hawaii to start a chocolate business. He purchased
plantations on Keaau and Kona, and decided to use the fine criollo cacao
beans for his foundation. The beans he harvested are sent to California,
after they have been fermented and dried, and are processed into high
quality chocolate. Only available through mail order, the chocolate is used
primarily by pastry chefs.

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MAJOR PLAYER IN THE MARKET

CADBURY (INDIA)

Trading at rs.850, the Cadbury (India) stock presents a good long-term investment option.
After hitting a high of Rs. 981 in March 2000, the stock retraced to its present level. The
current price discounts the latest EPS 49 times. With good growth protects ahead and a
strong financial background, the stock may hold good potential for steady returns over
the long term.

Cadbury (India), subsidiary of Cadbury Schweppes Overseas, is one of the leading

players in the chocolate and sugar confectionary segment. The parent has a 51 percent

16

stake in the company. For

the year-ended December
1999, close to 76 percent
of the sales turnover was
derived from chocolate
followed by malted foods
(22 percent).
Cadbury (India) has for
long been the leading
player in the chocolate
industry. It is virtually a household name with leading brands such as Five Star and Dairy
Milk. Of late, the company has been flooding the market with new launches. Among the
successes of recent years are Perk and Picnic.
In the malted food segmented, Bournvita is one among the popular brands. However, the
health- drink segment has failed to lead support to the companys bottom-line in the
recent past. Volumes in Bournvita have been deciding for some time. However, this is not
likely to be a drag on the profitability.
Cadbury (India) has levered on its marketing strengths and product range. Competition
may stem from players such as nestle in the near term. Apart from this, other new players
such as Mars and Hersheys may have an impact on the level of competition. However,
the reduction in the excise duty on malted drinks and chocolates and the lower import
duties on cocoa is likely to have a positive impact on the cost-structure of the firm.
The earnings performance of 2000 first quarter was impressive. Sales revenue rose 20
per cent to Rs. 139.34 crores compared to the corresponding previous period. Operating
margins declined marginally from 16.4 per cent to 15.7 per cent. Post-tax earnings rose
an 11.5 per cent to Rs. 10.34 crores. If the top line growth is sustained at this level, it
could provide a boost and growth over the long term. Shareholders can stay invested.
Cadbury was controversially taken by Kraft co.ltd in February 2010.Cadburys market
share in India is 79%

17

NESTLE

The story of chocolate began in the new World with the Mayans, who drank a dark brew
called cacahuaquchtl. Later, the Aztecs consumed chacahoua and used the cocoa bean for
currency. In 1523, they offered cocoa beans to Cortez, who introduced chocolate to the
world, where it swiftly became a favorite food among the rich and noble of Europe.

From the beginning, tuning raw, bitter cocoa beans into what one 17 th century writer
called the only true food of the gods has been a fine art, a delicate mixture of alchemy

18

and science. Centuries ago it was discovered that by fermenting and roasting the beans,
an almost otherworldly flavor could be created. In 1875, after tears of trying, a 31-yearold candy maker in Vevey named Daniel Peter figured out how to combine milk and
cocoa powder. The result-milk chocolate. Peter, a friend and neighbor of Henri Nestle,
started a company that would quickly become the worlds leading maker of chocolate.
For three decades the company called Peter, Cailler, Kohler relied on Nestle for milk and
marketing expertise. In 1929, the almost inevitable merge took place as Nestle acquired
Peter, Cailler, and Kohler.
Nestle chocolates has increased its sales tremendously in
India. Latest news for nestle chocolates India is,that it will not only be undertaking
selective price hikes, but will also be reducing the weight for its chocolate products in
order to combat rising raw material costs, reportsThe Economic Times .
According to company sources, the weight of Nestle's Kit Kat, Milkybar and Munch
chocolate bars will be reduced by around 5-7%, which implies a price hike of around 7%.
Sources expect this measure to pan out by April end, the report adds.
Although Nestle's milk product division generates the majority of its revenues, chocolates
generate nearly 15% of sales for the company.
Nestle's move follows market leader, Cadbury India's Rs 5 (9%) price hike of its flagship
brand, Cadbury Dairy Milk to Rs 60, the report says.Nestles market share in India is
14%.

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AMUL
AMUL CHOCOLATE is made from Sugar, Cocoa Butter, Milk Solids, Chocolate mass
Composition Milk Fat 2% Sugar 55% Total fat 32.33% (Milk fat + Cocoa Fat) Cocoa
Solids 7.5% Milk Solids 20% Product Specifications: Meets all requirements under the
PFA for boiled sugar confectionary. A gift foe someone you love. Amul Chocolate has
chosen the phrase A gift of someone for love to market their chocolate products.
Today, GCMMFs Amul brand of milk products receives business queries from dozens of
countries, ranging fron the U.S. and the Netherlands to Singapore and New Zealandthanks to an innovative marketing campaign on the World Wide Web.

20

The round-eyed, Chubby-Cheeked Amul Moppet has been a wildly popular advertising
fixture, with its punchy one-liners amusing Indian viewers from bus stands, lamp kisos
and billboards for over thirty years. The ultimate compliment to the butter came when a
British company recently launched a butter and called it Utterlt Butterly, a fitting
recognition of the Thorough bred, utterly Butterly Delicious Amul. Every week,
Amuls topical ads for its butter products are posted on its Web site, along with recipes
fore Indian dishes featuring Amul products. Archives of hundreds of topicals dating back
to 1979 are available on the site. The topicals have also been carried every day on the
Indian World home page.amul chocolates market share in India is 5%.

21

Consumer
Behavior

22

INTRODUCTION

The term consumer behavior refers to the behavior that consumers display in searching
for, purchasing, using, evaluating and disposing of products and services that they expect
will satisfy their needs. The study of consumer behavior is the study of how individuals
make decisions to spend their available re- source (time, money, effort) on consumption
related items. It includes the study of what they buy, why they buy it, when they buy it,
where they buy it, how often they buy it and how often they use it.
Information about the pattern of consumption in various segments of society and
dynamics of consumer behavior are central to the understanding for developing new
concepts in marketing. The essence of modern marketing concept is that all elements of
business should be geared towards identifying and satisfying the needs of the consumers.
Decision Making Process
The consumers decision to purchase or reject a product is a moments of final truth for
marketer. It signifies whether the marketing strategy has been wise, insightful, and
effective, or whether it was poorly planned and missed the mark. Thus, marketers are
particularly interested in consumers decision-making process. We would be discussing a
simple model of consumer decision making that emotional consumer. The modal, has
three major components:
1)

Inputs

2)

Process

3)

Output

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CONSUMER DECISION MAKING PROCESS

External influences
Socio culture Environment

Firms Marketing Efforts

Input

Family
Reference Group
Other non-commercial
influence
Social class
Culture and subculture influences

Product
Price
Place
Promotion

Consumer Decision Making

Psychological Factors
Need recognition
Information search
Valuation
alternatives

Process

Perception
Motivation
Attitude
Learning
Personality

Experience

Post Purchase Behavior

Output

Purchase
Trial
Repurchase
24

Post purchase evaluation

INPUTS
The input component draws on external influences that serve as sources of
information about a particular product and influence a consumers product-related values
and behavior. Chief among these input factors are the marketing mix activities of
organizations that attempt to communicate the benefits of their products and services to
their potential customer, and the no marketing socio-cultural influences, which, when
internalized, affects the consumers purchase decision.

PROCESS
The process component of the modal is concerned with how consumers make
decisions. The psychological field represents. The internal influences (motivation,
perception, learning, personality, and attitudes) that effect the consumers decision
making processes.

Prepurchase Activity: After the problem is identified, the buyer indulges in

prepurchase activity. It is under stood that need is a father of a deed.
There generally remains a time lag when a person thinks to buy and the actual
incidence of buying. During this time, the person is energized and is likely to be
influenced by various factors. Need arousal drives the consumer to collect information
about the required product. He first indulges in internal search, scans his psychological
field so as to recollect of retrieve any information or past experience related to particular
need. His psychological field comprises of his past learning. Perception, personality and
past experience. If he is not satisfied he then goes in for external search and looks for
various sources of information. The degree of perceived risk can also influence this stage
of the decision process. In high risk situation they are likely to engage in complex
information search and evaluation tactics.
Of key interest to marketer are the various sources of information that the
consumer will return to and the relative influence that they will have on his buying
behavior.

25

Evaluation of Alternatives: when evaluating potential alternatives consumers tend

to use two types of information:
1.

A list of brands from which they plan to make their selection (the evoked set),
and

2.

The criteria they will use to evaluate each brand.

The criteria consumers use to evaluate the brands that constitute their evoked sets
usually are expressed in terms of important product attributes. Consumers use
certain procedures or rules to facilitate a choice among multi attribute objects.
Consumers decision rules have been broadly classified into two major categories
compensatory and non compensatory decision rules.
An understanding of which decision rules consumer apply in selecting a
particular service or product is useful to marketers concerned with formulating a
promotional programme.

Output
The output portion of consumer decision marking model concerns two closely
associated kinds of post decision activity. Purchase behavior and post purchase
evaluation. The objective of both activities is to increase the consumers satisfaction with
his/her purchase.

Purchase Behavior: Consumer make two types of purchase and repeat purchase. If a
consumer purchase a product (or brand) for the first time, and buys a smaller quantity
than usual, this purchase would be considered a trail. Thus, a trail is the exploratory phase
of purchase behavior in which consumers attempt to evaluate a product through direct
use.
If the new brand is established product category (cola, chewing gum, candies) is
found by trail to be more satisfactory or better than other brands, consumers are likely to
repeat the purchase, Repeat purchase behavior is closely related to the concept of brand
loyalty, which firms try to encourage because it contributes to greater stability in the
marketplace.

26

OBJECTIVE OF THE STUDY

1.

To study the brand preferences of consumers from the three brands of

chocolates i.e. Amul, Cadbury, Nestle available in the market.

2.

To find the extent of brand loyalty of consumers that exists among

different chocolate brands.

3.

To study the influence of various aspects on buying behavior.

4.

To study the usage & brand awareness of chocolates product in among

the residents of Lucknow.

5.

To checkout the satisfaction level of the consumers for chocolate bars

they are using.

27

Research Methodology

28

RESEARCH METHODOLOGY

Research methodology in a way is a written game plan for conducting research. Research
methodology has many dimensions. It includes not only the research methods but also
considers the logic behind the methods used in the context of the study and complains
why only a particular method of technique has been used. It also helps to understand the
assumption underlying various techniques and the criteria by which they can decide that
certain technique will be applicable to certain problems and other will not. Therefore in
order to solve a research problem, it is necessary to design a research methodology for
the problem as the some may differ from problem to problem.
This chapter focuses on the various techniques, methods and assumptions used in
this study. It sheds light on the research problem, objectives of the study, and also its
limitations. The later part of the chapter explains the manner, in which the data is
collected, classified, tabulated, analyzed and interrupted so as to each to conclusive
results.
The study is of diagnostic nature and thus the overall research design is going to
be rigid. The design should provide enough provision for protection against bias-ness and
must maximize reliability.

29

A) PROBLEM STATEMENT:Research work is management parlance is extremely important for a given close
view of the relatives of the real life business issues. For any management student who is
striving to perform outstandingly. It is of paramount importance that apart from
theoretical knowledge he must also gain some practical knowledge. Survey report deals
specially with providing an opportunity to management students to have some exposure
in real business world. My study topic deals with Consumer Behavior and different
factors that influence consumer to purchase a particular brand of chocolates.
As chocolate is regarded as one of the biggest Fast Moving Consumer Good
(FMCG), there are many factors in mind of consumer which induce them to purchase a
particular brand of chocolate. Some of these factors are Price, Taste, Packaging, Brand
name. Ever changing behavior of consumer, dominance of different brands in the market
compelled me to undertake a research work in this segment. The prime objective of my
study is to analyze the effect of various factors on buying behavior of consumers.

B) RESEARCH DESIGN:To analysis the buying behaviors of the residents of Bhiwani Sample Survey Methods
has been employed through other methods are also important. This method is given prime
significance in modern research because of its extensive use to study the relationship of
different factors, attitudes and practices of society and to explore the problems that
cannot be treated by experimental methods.

To collect data, a number of techniques are employed under the sample survey
method i.e. questionnaire. The increasing use of questionnaire is probably due to
increased emphasis by social scientists on quantitative measurement to uniformly
accumulated data.

30

a) Area of study
The area of the study is different Markets of Bhiwani in order to collect the Primary data
from the respondents.

b) Study area
Study area is Lucknow.

c) Target Segment
Consumers of Milk chocolates bars of age group 18-25

C) SELECTION OF SAMPLE:It becomes impossible to contact each and every individual of the population due to
limitations of essential resources like time and money. Therefore, the study is preferably
allowed down to a representation sample to make the study more manageable.
Keeping in the view the objectives and resource limitation of the study, 100 respondents
were considered.
Respondents

-100(Youths of age group 18-25)

The selected sample is representative of the population and is accurate and

practicable.

D) SAMPLING PLAN:The following factors will be taken into consideration within the scope of sampling plan:

I Sampling Unit: It defines the target population that will be sampled i.e.
it answers who is to be surveyed. In this study, the sampling unit is youth
with in the age group of 18-25 years.

31

II Sampling Size: - It indicates the numbers of people to be surveyed. Though large

samples give more reliable results than small samples but due to constraints of time and
money, the sample size was restricted to 100 respondents.

Probability sampling can be of following types:

Simple random sampling

Stratified random sampling

Cluster (area) sample

In this case, stratified random sampling was done since the respondents will classified
into well defined classes or strata that were distinct from each other.

E) COLLECTION OF DATA:
After the research problem has been defined and the research design has been
chalked out, the task of data collection begins. The data can be collected mainly through
primary sources, but it was supplement with secondary data.

I Primary data collection:

Primary data is the data which is collected through observation or direct communication
with the respondent in one form or another. These are several methods for primary data
collection like Observation Method, Interview Method, through schedules, through
questionnaires and so on.

II Secondary data collection methods:

Secondary data is collected through

Magazines

Journals

Portals

32

Formation of Questionnaire
Quite often the questionnaire is considered as the heart of a survey operation.
Hence it should be carefully constructed. It is an investment that is widely used to collect
various types of data and consists of long lists of questions designed to collect any
information. It has personally been found that people are more frank in giving replies to a
questionnaire than to an interview schedule. Though being less expensive, it has certain
limitations like incomplete entries and erroneous responses. But the educational
qualification of the respondents is an additional factor which renders this technique the
most relied upon.
Formation of a good questionnaire involves intensive thinking and deliberation of
the problem with predetermined objective and aims properly placed in the questionnaires.
The

questionnaire framed for the purpose of the study consists of a limited

number of questions placed in logical order. So, that the objective of the question is clear
to the respondents. All the questions are centered on the problem keeping in the mind.
The questions were both open and close ended as well as multiple choices.

Analysis of Data:
Data, after collection, has to be analyzed in accordance will the outline laid for the
time of developing the research plan. The term analysis refers to the computation of
certain measures along with searching for patterns of relationship that exist among data
groups. Data presented in raw state appear unrecognized and complex. Statistical
processors are used this complex data into some significant understandable form.

33

LIMITATIONS OF THE STUDY

The project was successfully completed with certain inherent limitations. These
limitations were:
1)

The time of research was short due to which many fact has been left
untouched

2)

The Area undertaken in research in Lucknow only. But to do a complete

research a wide area is required, so the area is also a constraint of the study.

3)

Sample for the study taken is of only 100 consumers. This can also act as a
constraint in the study.

4)

While collecting data some of the consumers are not willing to fill the
questionnaire, so they might not fill their true behavior. This can also be a
constraint of the study.

34

Data Analysis
&
Interpretation

35

ANALYSIS AND INTERPRETATION

Q1. Which companies chocolate do you prefer to purchase?

Brand Name

Percentage

Cadbury

40

Nestle

35

Amul

25

36

As per shown in the Pie chart, the maximum market share is hold by Cadbury. And least
share is hold by Amul followed by Nestle. And this result is obtained from the response
of customers towards Questionnaire filled by them for the consumption of milk chocolate
bars.

37

Q2. What is your pattern of consumption?

Pattern of consumption

Percentage of consumption

More than one per day

15

Daily one

25

3-4 chocolates per week

45

Weekly

10

Rarely

As shown in Pie chart, most of the consumers consume milk chocolate bars as
3-4 per week, which represent 45% of the total number of surveyed consumers. And
second most percentage of consumers consumes milk chocolate bars are of daily one.

38

Q3. Do you purchase the same chocolate every time?

Answer

Percentage

Yes

68

No

32

As pie chart shows, 68% of the consumer purchase the same chocolate every time, it
means that mostly consumers are brand loyal.32% of consumers dont purchase the same
chocolate every time.

39

Q4. If no, then while switch over to another brand of chocolate then what factor you
consider (tick any one)?
Factors
Price
Quality
Brand Name
Advt. and Ref. Group
Taste

Response
6
12
3
3
8

Percentage
18
38
9.5
9.5
25

As shown by the pie chart, 38% of consumers consider Quality as most important
factor while switching over to any other brand of milk chocolate bars, and the second
most preferred factor is Taste

40

Q5. Which factor you consider the most while purchasing the chocolate? Please tick
any one.

Consumer's consideration

Percentage

Price

16

Taste

48

Brand

18

Packaging

Availability

48% of the consumer of milk chocolate bars said that the most considering factor by them
on the basis of which they purchase a particular brand of milk chocolate bars is Taste of
that milk chocolate bars. And the least interested factor is Packaging and Availability.

41

Q6. Which mode of advertisement influence you most to buy a particular

Chocolate? Please tick any one.
Media

Percentage

Newspaper

22

Magazine

14

Radio

Television

54

Others(hoardings,banner,pamplets etc)

The buying behavior of consumers is also affected by the different type of

advertisements. As shown in the pie chart, the most influencing media is electronic media
i.e. TV, and the second most influencing factor is newspaper.

42

Q7. Which reference group influence you most to buy a particular chocolate? Please
tick any one.
Reference Groups

Percentage

Friends

55

Family

Retailers

Celebrity

39

Others

As shown in the pie chart, from reference group friends are the most influencing factor
which influence consumer to purchase a particular brand of milk chocolate. And this
statement is supported by 55% of consumers of milk chocolate bars. And the second most
influencing factor which influence customer to purchase a particular brand of milk
chocolate bar are celebrities , and this statement is supported by 39% of consumers.

43

Q8. Whether you check or consider manufacturing and expiry date while buying
any chocolate?

ANSWER

Percentage

YES

55

NO

45

Pie chart says that 55% of the consumer check or consider manufacturing and expiring
date while buying any chocolate. 45% of consumers dont go for that. This should be a
matter of concern

44

Q9. How much you are satisfied with the present brand of chocolate which you often
purchase?

Satisfaction Level

Percentage

Highly satisfied

27

Satisfied

32

Undecided

21

Dissatisfied

12

Highly dissatisfied

About 27%of consumers are highly satisfied with the present brands of Milk chocolate
bars in Bhiwani and 32% are satisfied. if we consider brand wise then milk chocolate bar
of Cadbury is the most preferred brand in Bhiwani which holds 40% of the market
share and after that Nestle has second position with a holding of 35% of the market
share and the least preferred brand from the take brand to make report is Amul with a
holding of 25% of market share.

45

Findings
& Conclusion

46

FINDINGS & CONCLUSION

The findings of the study of consumer buying behavior in chocolates states among all the
three to brands i.e. Cadbury, Nestle and Amul. The brand at first place is Cadbury, the
Nestle (2nd) and last is Amul. Among all these three Cadbury is having the largest market
share i.e. 40, Nestle 35 and Amul 25. Among all these Brands Cadbury is the only
company offering largest number of brands in chocolates i.e. 6 (only for milk chocolate
bars). As compared to Cadbury Nestle Company is having 2 brands and Amul is with 4
brands of chocolates.
For 48% of the consumers the most important factor which is considered while
purchasing any milk chocolate bars is Taste of that chocolate. They give preference
to other factors also, but most important thing is taste.
The buying behavior of consumers is also affected by the different type of
advertisements. And the most influencing media is electronic media i.e. TV, and
from reference group friends are at most influencing position.
Quality is the most important factor which consumers consider while switching
over to any other brand of milk chocolate bars.
Consumers of Bhiwani are more attracted towards the foreign brands like Cadbury
and Nestle and demand that more number of foreign milk chocolate bars should be
available in the market, like some milk chocolate bars brands of Swiss and French
chocolates. As this thing shows that consumer of Bhiwani are more satisfied with
the foreign brands and hence demand more of it. But brands like Amul are not able
to get proper place in the market in spite that good advertisement is being done by
Amul also.
68% of the consumers are brand loyal.
The buying behavior of consumer for different brands of milk chocolate bars is
affected by various factors like price, taste, packaging, brand etc.55% of the
consumer check or consider manufacturing and expiring date

while buying any

chocolate. 45% of consumers dont go for that. This should be a matter of concern.

47

SUGGESTIONS

48

SUGGESTIONS

A detail study of the Consumers Buying Behavior of Age Group 18-25 For
Milk Chocolates Bars was done. Some important suggestions are as follows:
1.

The Indian company AMUL has to review its process so as to gain brand loyalty of
the consumers.

2.

The chocolates whose expiry dates goes off should be replaced at once and fresh
stock should be offered.

3.

The chocolate companies should think on the matter that why the consumers
switch over to the other brands.

4.

The chocolate companies should put more & more emphasis on the taste and
quality of the chocolate so as to gain brand loyalty.

5.

As factors other than TV and Newspaper are considered less so companies should
use the print and electronic media for advertisement in large extent.

49

Annexure

50

Questionnaire

Name of the consumer

____________________________________

Age

____________________________________

Sex

____________________________________

Income

________________________________

Q1. Which companies chocolate do you prefer to purchase?

Cadbury

Amul

Nestle
Q2. What is your pattern of consumption?
More than one per day

Daily One

3-4 Chocolate per week

weekly

Rarely
Q3. Do you purchase same chocolate every time?
Yes

No

51

Q4. If no, then while switch over to another brand of chocolate then what factor you
consider? Please tick any one.
Price

Quality

Brand

Name
Advertisement and Reference group
Taste
Q5. Which factor you consider the most while purchasing the chocolate (tick any
one)?
Price

Taste

Brand

Packaging

Availability
Q6. Which mode of advertisement influence you most to buy a particular
Chocolate? Please tick any one.
Magazine

Newspaper

Radio

Television

Other
Q7. Which reference group influence you most to buy a particular chocolate? Please tick
any one.
Friends

Family

Retailer
Celebrity

Other

Q8. Whether you check or consider manufacturing and expiry date while buying
any chocolate?
Yes

No

52

Q9. How much you are satisfied with the present brand of chocolate which you often
purchase?
Highly Satisfied
Undecided

Satisfy
Dissatisfied

Highly Dissatisfied
Q10. What is your suggestion for the improvement of your preferred chocolate
Brand?

______________________________________________________
_________

53

BIBLOGRAPHY
BOOKS
Marketing Research, Donald T.S
Research Methodology, C.R kothari
Consumer Behaviour, Della A.J

MAGAZINES & JOUNALS

Advertising Express, September 2006,Traditional Mass Media, By
K.Suresh
Business World, November 2006
Business Today, Trends

WEBSITES
www.amul.com
www.nestle.com
www.cadburyindia.com
www.consumerpsychology.com
www.altavist.com

54