FIELD STUDY REPORT

On

Effect of Advertisement on customers of

confectionery products with special reference to
CHOCOLATES

Toward partial fulfilment of

Integrated Master of Business Administration (IMBA)
(Babu Banarasi Das University, Lucknow)
Guided By: Submitted by:
Ms. Stuti Gupta Tasneem Subhan
IVth semester
Roll No. 1130675098

Session: 2014 2015

School of management

Babu Banarasi Das University

Sector 1, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (u.p.) India
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 PREFACE

As a part of our course curriculum I had to go through a field study report on any topic get
the right exposure to the practical aspects of business management.

I want to express my gratitude for the experience and practical knowledge that I earned
during the field study. In this project report I had presented my great experience in the form
of words. In making the project report theoretical knowledge was needed more than the
practical which was given to us by my professors in my institute.

The project flows logically consisting of a questionnaire. I hope that the findings and the
suggestions will help the company, confidently to formulate its strategy in comparison to its
competitors. I have enjoyed my report preparation and have learnt lots of new things. I have
tried my level best to make this report a reader friendly & also did my level best to fulfil the
objective of the study.

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 ACKNOWLEDGEMENT

No project report ever reflects the efforts of a single individual. The report owes its existence
to the constant support and guidance of a number of people. I am grateful to all of them.

I owe a never-ending debt of gratitude to Ms. Stuti Gupta for his expert guidance and
support.

I would like to thank all the respondents for giving their valuable time and providing useful
information.

I am also grateful to all those who have either directly or indirectly contributed towards the
completion of the project, for their support and encouragement.

Tasneem Subhan

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 DECLARATION

I hereby declare that the project work entitled of Effect of Advertisement on

customers of confectionery products with special reference to

CHOCOLATES

Submitted to the BABU BANARASI DAS UNIVERSITY, is a record of an original work

done by me under the guidance of Ms. Stuti Gupta and this project work is submitted in
the partial fulfilment of Integrated Master of Business Administration.

Tasneem Subhan

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 TABLE OF CONTENTS

SR.NO. INDEX PG.NO.

1. INTRODUCTION 6-7

2. INDUSTRY OVERVIEW 8 - 12

3. OBJECTIVES OF THE STUDY 13

4. RESEARCH METHODOLOGY 14 - 15

5. DATA ANALYSIS 16 - 20

6. FINDINGS 21

7. CONCLUSION 22

8. SUGGESTION & 23
RECOMMENDATIONS

9. BIBLIOGRAPHY 24

10. QUESTIONNAIRE
25 - 27

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 INTRODUCTION

Advertising is how a company encourages people to buy their products, services or ideas. An
advertisement is anything that draws good attention towards these things. Ads of products
appear on television, as well as radio, newspapers, magazines, etc. They try to get people to
buy their products, by showing them the good rather than bad of their products. Advertising
happens in many different ways. Many products are advertised on television, although not all
channels permit advertising. The advertisements usually appear during breaks between
televisions shows. They are usually for products, other television shows or movies and are
not normally much longer than 30 seconds. Some radio stations have audio advertisements
that play between programmes.

The purpose of advertising is to convince customers that a companys services or products

are the best, enhance the image of the company, point out and create a need for products or
services, demonstrate new uses for established products, announce new products and
programs, reinforce the salespeoples individual messages, draw customers to the business,
and to hold existing customers. Advertisement makes people aware about the products.
Without advertisement not a single firm or company can grow in this world of competition.
Advertising is the most debated topic now. Advertising is a mass marketing technique.
Advertisement has both positive and negative effect on the customers, it depends on us which
effect to consume, because advertisement is just a tool to enhance goods features.

Functions of Advertising

To differentiate the product from their competitors.

To communicate product information.
To urge product used.
To expand the product distribution.
To increase brand preference and loyalty.
To reduce overall sales cost.

Confectionery means sweet, and confectionery products are sweet food products. Products
like biscuits, chocolates, wafers, noodles, sauces, health drinks, etc are confectionery
products. Confectionery products are very much advertised so as to make customers know

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about it. Chocolate is a confectionery product (sweet food) which mostly every age group
people prefers whether we talk about children, teenagers, adults or even old people, everyone
likes chocolates. It is basically a sweet that is made of the mass of cocoa beans and cocoa
butter obtained by processing roasted cocoa beans and powdered sugar. Advertisement of
confectionery product like chocolates is very effective among the consumers. People get very
much influenced by the Ads. Advertisement plays an important role in the marketing of the
products.

Indian chocolate market is almost totally depended on purchases of kids. In recent times, the
chocolate majors, Cadburys and Nestle took major initiatives to bring in grown-ups into this
market. While Cadbury is trying to sell indulgence to adults, Kit Kat is selling ritualistic
break to teenagers/ young adults. This is reflected in the changing advertising patterns across
different channels.

Advantages of advertising

Introduces a new product in the market.

Expansion of the market.
Increased sales
Fights competitions
Enhances Good-will
Educate the consumers
Eliminate middlemen

Limitations of advertising

Adds to costs
Undermines social values
Confuses the buyers
Some advertisement is in bad taste
Encourages sales of Inferior products.

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 INDUSTRY OVERVIEW

Chocolates are liked by everyone due to its creamy and chocolaty taste. The Indian Chocolate
industry is booming day by day as in India people are more conscious about their social status
and they prefer to gift chocolates with cashew or almond flavours instead of Mithai on
special occasions to show elegance. Chocolate can resist for more days as compared to
sweets and are much tastier than sweets. In India there are several brands of chocolate. We
have taken three top most brands Cadbury, Amul, Nestle which most of the people like to eat.

Cadbury is a British multinational confectionery company owned by Mondelez

International. It was established in 1824 by John Cadbury. It is among the two biggest global
brands along with Mars and its head offices are Uxbridge, London. Right now it operates in
more than 50 countries across the world. Mondelez International is one of the biggest brands
in the world when it comes to chocolates, candies, and biscuits. Cadbury India began its
operations in India in 1948 by importing chocolates. It now has manufacturing facilities in
Thane, Pune, Gwalior, Hyderabad, Bangalore and Himachal Pradesh and sales offices in New
Delhi, Mumbai, Kolkata and Chennai. The corporate head office is in Mumbai under the
name of Cadbury House.

Its top chocolate products available in India are as follows:

Dairy Milk: Dairy milk is a milk chocolate brand made by Cadbury. Every product in this
line is created only with milk chocolate. It was launched during 1905 in the UK. In Indian

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market its advertisement deals with the sentiments which make people emotionally attached
to it as its tagline says Kuch meetha ho jaye

Bournville : Bournville is a dark chocolate bar. The chocolate derives its name from a
synonymous model village in Birmingham. It is primarily manufactured in France.

Advertisement of Bournville Dark Chocolate

Tagline : You dont just buy a bournville, you earn it

Duration : 55 seconds

First seen : December 08

Ad Message : Re-introducing the dark chocolate brand Bournville from Cadburys stable.

Target Audience : SEC A Higher income group (25+ years)

Frequency : Medium

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Crunchie : Crunchie is a chocolate bar and comes with a honey laced sugary center.The
product is available in several sizes such a snack size, which is basically a small cube like
variation, and the king size. The single serve bar is the most commonly available version and
comes with a length of 7 inches, width of an inch, and depth of 3/4th of an inch.

Advertising- The Cadbury signature logo is derived from the signature of William Cadbury.
It was adopted as the worldwide logo in the 1970s.

Amul is also one of the top chocolate brands in India which is a part of Gujarat Cooperative
Milk Marketing Federation Limited (GCMMF), which is the biggest organisation in the
domain of food product marketing in India. The company procures 13 million litters of milk
on a daily basis in the peak period and has 16,117 milk cooperative societies that are based in
villages, 3.18 million members who produce milk, and 17 members unions that cover 24
districts. In 2011-12 its aggregate turnover was 2.5 billion US dollars. Its slogan is The
Taste of India.

Amul chocolates are available in various forms such as

Amul Fruit n Nut

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Amul Bindass

Amul Chocozoo

Amul Milk Chocolate

These are available in several flavours like orange, milk, and chocolate.

Nestle is one of the top names in the world when it comes to nutrition, wellness, and health.
The organization was established by Henri Nestle at Vevey, Switzerland during 1866 and its
head officers are located over there. It has approximately 2,80,000 staff members and
operates in nearly all countries in the world. Its tagline also shows that Good Food, Good
Life.

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Its leading chocolate products in India are as follows:

Kit Kat: Created originally by Rowntree,s based in York, England. Kit Kat is produced on a
global scale by Nestle that had acquired the company during 1988. Kit Kat is a wafer biscuits
bar covered in chocolate. Every bar is made up of fingers that contain 3 layers of wafer that
are covered by chocolate on the outside. Each bar can be eaten separately. Kit Kat bars with
only one finger are fairly popular as well. Its tagline says Have a break, Have a Kit Kat the
brand change their famous tagline to Kit Kat Khao Khush Ho Jao.

Milky Bar : Made by Nestle, Milky Bar is composed of white chocolate. It is also available in
the several countries in addition to India.

Nestle Crunch : A Nestle product made from crisped rice and chocolate. It was launched
during 1937.

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 OBJECTIVE OF THE STUDY

To know the consumers awareness about chocolates and their advertisement -

Building brand awareness is a common starting point when it comes to marketing the
product.

To study the impact of advertisement of chocolates.

To know the effect of advertisement of chocolate on consumers.

To understand the process of persuading the customers in relation with chocolate.

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 RESEARCH METHODOLOGY

Research methodology is the process used to collect information and data for the purpose of
making business decisions. The methodology may include publication research, interviews,
surveys and other research techniques.

Research Type:

In this report I have used descriptive research technique.

Descriptive research includes surveys and fact-finding enquiries of different kinds. The major
purpose of descriptive research is description of the state of affairs as it exists at present. The
main characteristic of this method is that the researcher has no control over the variables.

Data Collection:

PRIMARY DATA is the data which has been collected through personal contact.

Through Questionnaire Questionnaire is a written set of questions, the

answers to which are recorded by the respondents.
Through Personal Interaction In personal interaction an interviewer ask
questions in a face to face contact to the other person.

SECONDARY DATA is the data which are available in the form of fact and figures. The
sources of secondary data are:

Websites
Magazines
Articles

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Sample Plan:

SAMPLING TECHNIQUE For my survey I have used Convenience sampling technique.

Convenience sampling is a non-probability sampling technique where subjects are selected
because of their convenient accessibility and proximity to the researcher.

SAMPLE SIZE - Sample of 30 people was taken in order to conduct the research.

UNIVERSE - In accordance to the specified research universe is Lucknow city.

STATISTICAL TOOL - For my survey I have used Pie chart.

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 DATA ANALYSIS

Q 1) Do you eat confectionery products?

6%

YES
NO
94%

From the above chart it has been shown that 94% customers eat confectionery products and
6% do not eat.

Q 2) Which confectionery product you like the most?

BISCUITS
20% 15%
5% CHOCOLATES

60% WAFERS

HEALTH
DRINKS

From the survey it has been found that 60% customers eat chocolates, 15% biscuits, 5%
wafers and 10% drinks health drinks.

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Q3) Do you eat chocolate?

20%

YES
NO
80%

From the above chart it has been shown that 80% customers eat chocolate while the rest 20%
does not eat.

Q 4) How frequently you like to eat chocolate?

17% 34% DAILY

23% WEEKLY

26% TWICE IN A WEEK

WITHIN 15 DAYS

It is shown that 34% customers eat chocolate daily, 26% weekly, 23% twice in a week, and
17% within 15 days.

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Q 5) Which chocolate brand you know about?

30% CADBURY
40%
NESTLE
20% AMUL
ALL THE ABOVE
10%

From the above chart it is shown that 30% customers knows about Cadbury, 20% about Nestle, 10%
about Amul and rest 40% knows about all the above brand.

Q 6) Which chocolate brand you like?

6%
10%

CADBURY
NESTLE
84%
AMUL

From the survey conducted it has been founded that 84% customers like Cadbury, 10%
Nestle, and 6% Amul.

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Q 7) Which brands chocolate is more tasty?

17%

17% CADBURY

66% NESTLE
AMUL

From the above chart it has been shown that 66% customers says that Cadburys chocolate is
more tasty, 17% says Nestles chocolate is more tasty, and 17% says Amuls chocolate is
more tasty.

Q 8) Through which source you get influenced?

3% 4%

ADVERTISEMENT
SALES PROMOTION
93%
PERSONAL SELLING

From the survey it has been founded that 93% customers get influenced through
advertisements, 4% through personal selling, and 3% through sales promotion.

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Q 9) Which chocolate advertisement you like the most ?

7%

33% CADBURY
60% NESTLE
AMUL

As it is shown from the above chart that 60% customers like Cadburys Ad, 33% like Nestle
Ad, and 7% like Amul Ad.

Q 10) Does the advertisement of chocolate makes any change on your buying

behaviour?

46%

54% YES
NO

As the above chart shows that 54% customers says that advertisement makes changes on
there buying behaviour and the rest 46% do not feel any changes on there buying behaviour.

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 FINDINGS

From the survey conducted I had find out the following result:

Most of the people in the survey eat confectionery products. The customers like
different types of confectionery products such as biscuits, chocolates, wafers, health
drinks, etc, but customers like chocolate more than other confectionery products.

In the survey conducted it has been founded out that almost all the customers eat
chocolate or likes to eat chocolate and in the survey it was found that most of the
customers like to eat chocolate daily and then weekly.

Customers know about various brands of chocolate like Cadbury, Nestle, Amul and
more than half of the customers likes Cadburys chocolate such as dairy milk,
bournville.

We have also finded out that Cadbury is the first choice of customers when it comes
to taste and then Nestle then Amul. Many customers like the advertisement of
chocolate made by Cadbury brand as they are always different and they easily attract
the customers attention towards their ads. The ads are short and eye catching.

Advertisement has a great effect on the buying behaviour of customers and they get
very much influenced from the ads as a result their buying habit gets affected from the
advertisement.

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 CONCLUSION

From the report we have come to the conclusion that advertisement has major and minor
effects on customers. With the help of advertisement we come to know about the various
verities of chocolates. Advertisement helps in introducing a new product in the market. It
creates awareness among the customers and help the brand to promote its product. Attractive
advertising of chocolate increases the demands of public which directly boost sales of the
brand.

The major consumers of chocolate apart from kids are teenagers and people between the age
of 15 35. 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 prized according to their sizes. Chocolates like dairy milk and five star can be got for
Rs 10. Chocolates in India are slowly and steadily substituting the mithai or traditional Indian
sweets.

Factors like modern trade, increasing levels of income among the middle class, economic
liberalization, and present microeconomic situations have been major contributors to the
prominent status enjoyed by the top chocolate brands in India.

The chocolate industry is presently valued at INR 3200 crore and 70% of the market is in
Cadburys control. Nestle is a distant second with 20% share and the remaining companies
together take up 10% of the available market. Advertisement plays an important role in
capturing the market share.

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 SUGGESTIONS & RECOMMENDATIONS

As it is obvious from the study that the advertisement of chocolate effects the customers
both in a positive or negative way. As it makes the customer aware about the product, it tells
us about the availability of the product. Sometimes advertisement showcases the good
features of their product and neglects the bad. A few suggestions can be made so that the
chocolate brands can improve their product and advertisement technique in order to create
more customers and lead the market. These can be summed up as follows:

An attempt should be made to advertise the chocolate on a more wider scale in order
to grab more customer.

The chocolate brand like Nestle and Amul should focus more like Cadbury to target
the youth/teenagers, adults in order to increase the sales in the Indian market.

An attempt should also be made to make the chocolate more health conscious.

Brands like Amul must carry out proper promotion activities and produce variety of
chocolates to give consumer more option.

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 BIBLIOGRAPHY

BOOKS:

Business Research Methods - by Cooper and Schindler (Tata Mc Graw Hill, 9th
edition)

Research Methodology - R C Kothari (New Age International Publishers, 2nd edition)

Marketing Management - Philip Kotler

WEBSITES:

www.cadbury.com

www.nestle.com

www.amul.com

www.wikipedia.com

www.slideshare.com

www.chron.com

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 QUESTIONNAIRE

NAME

GENDER..

AGE

OCCUPATION.

CONTACT NO.

EMAIL ID

1. Do you eat confectionery products?

o Yes
o No

2. Which confectionery product you like the most?

o Biscuits
o Chocolates
o Wafers
o Health Drinks

3. Do you eat chocolate?

o Yes
o No

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4. How frequently you like to eat chocolate?

o Daily
o Weekly
o Twice a week
o Within 15 days

5. Which chocolate brand you know about?

o Cadbury
o Nestle
o Amul

6. Which chocolate brand you like?

o Cadbury
o Nestle
o Amul

7. Which brands chocolate is more tasty?

o Cadbury
o Nestle
o Amul

8. Through which source you get influenced?

o Advertisement
o Personal selling
o Sales promotion

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9. Which chocolate advertisement you like the most?

o Cadbury
o Nestle
o Amul

10. Does the advertisement of chocolate makes any change on your

buying behaviour?

o Yes
o No

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