PAPER – 331

CONSUMER BEHAVIOUR ASSIGNMENT

A STUDY ON CONSUMER
BEHAVIOUR OF NESTLE KIT-KAT

1. INTRODUCTION
 Chocolates and candies are one of the best loved gourmets in
the world. The attractive tastes and textures of chocolates and
candies delight the senses of all ages.
As far as nestle chocolate Kit-Kat is concerned, the product
developed as Wafer Crisp, was initially launched in London, UK
in Sept. 1935 as Rowntree’s Chocolate Crisp.
Within 2 years of launch Kit-Kat was established as Rowntree’s
leading product, a position that it has maintained ever since.
In India, 2 producers dominate the chocolate market – Cadbury
and Nestle. Other brands are also available in the market.
Nestle is now world’s largest food company.

2. ABOUT THE PRODUCT

2.1. USAGE: Nestle Kit-Kat is crisp wafer fingers covered with
chocolayer. It has a unique finger format with a ‘breaking’ ritual
attached to it. The new Kit-Kat is available in an exciting new
format – a single finger with three portions.
Since Kit-Kat comes under wafer category chocolate, most of the
customers prefer it almost anywhere and anytime. Kit-Kat
provides both the taste of smooth chocolate and the crunchy
and crispy wafers.

2.2. BRAND NAME: Kit-Kat fingers are consumed around the globe
as it is known that it comes from the world known brand Nestle.
Apart from Kit-Kat, Nestle also provides many other products in
Chocolate and Confectionary category. Some of them are Munch,
Polo, Eclairs, Bar-One, Munch Pop-Choc, Milk Chocolate etc.

2.3.COMPETITOR’S ANALYSIS

The biggest competitor of Nestle is Cadbury. Cadbury not only

competes with Nestle in terms of largest market share in
chocolate industry but it is also much wider in providing varieties
and ranges of chocolates. The following table shows the products
of Cadbury and Nestle in wafer category:

CADBURY NESTLE
Perk Kit-Kat
Perk Glucose Kit-Kat Chunky
 Ulta Perk Munch
Munch Pop-Choc
Milky Bar Crispy Wafers
Both Cadbury and Nestle offers their wafer chocolate products
at prices quite similar to their each other. But Cadbury has an
advantage of high prices with other categories of chocolates like
Diary Milk, Temptations, Celebrations etc. over Nestle.

2.4.ATTRIBUTES OF THE PRODUCT

Price: The amount of money charged for a product/ service, or

the sum of the values that consumers exchange for the benefits
of using or having the product/service. The price of Nestle Kit-Kat
varies with respect to size i.e., as the size of the wafer increases
price also increases simultaneously.
Product: The shape and colour of Kit-Kat is quite for the
customers. The labelling and packaging of Kit-Kat includes the
brand name and logo of Nestle. Like any of the FMCG product,
Kit-Kat’s packaging also includes the details of manufacturing
and expiry. It also includes the quantity of product in grams
along with ingredients used to prepare the chocolate and
nutritional facts.
Place: Nestle’s distribution is using the direct distribution
channel to supply confectionary products weekly to the retailers.
Promotion: Modern era is the era of communication with
customers, assuring customers satisfaction, which demands for
both personal and non-personal communication with the target
customers to build customer relations. The latest promotional
venture on Kit-Kat is the musical jig featuring squirrels dancing
in a park. The basic purpose of promotion is to explore the area
that is being unexposed and to bring awareness among the
people.

3. EMOTIONAL ASPECTS RELATED TO PURCHASE OF

CHOCOLATES

During the last decades marketing practices have been subject to a

rather radical shift towards emotional elements of marketing
 communication. Previously traditional practices like Kotler’s 4Ps
were adopted by companies when developing strategic positioning
and communication. This somewhat static approach has however
been doomed insufficient for the increasingly competitive
environment, which is characterised by fragmentation and
information overload.
Nowadays brand position is more important. Products have thus
become brands, which serves to offer added value to the
consumers. Consumers are increasingly looking for brands that
corresponds to their self perceptions and which they can use to
express their individuality and values. The customers are buying
chocolates not just because it is cheaper or they don’t have any
other choice, consumers are emotionally attached with this brand
and the taste of the chocolate. People mostly buy the chocolate at
the time of celebration, certain occasions and festivities; they eat
chocolates to express joy and happiness.

4. RESEARCH DETAILS
The data has been used to cover the various aspects like
consumption, consumer preference and customer’s satisfaction
regarding chocolates with special emphasis on Kit-Kat. Random
sampling method was used for this research. The sample size taken
for this study is 25.

5. DATA ANALYSIS & FINDINGS

Liking for the chocolates

Table 5.1 Ye N
s o
No. of 25 0
respondents

Analysis: All the 25 respondents taken during the survey likes

chocolates.
 Age No. of
Groups respondents

0-10 4
Preference according to age
11-20 9
groups
21-30 7
Brands Age Groups
Above 5
0-10 11-20 21-30 Above 30
30
years years years years
Cadbury 3 4 3 3
Nestle 1 5 3 1
Other 0 0 1 1
Brands

Analysis: The above chart shows that the different age groups prefer
different brands. Cadbury is mostly preferred by the age groups 0-10
years and Above 30 years. While is Nestle is preferred mostly by the
age group 11-20 years. Both Nestle and Cadbury are equally preferred
by the age group 21-30 years.

Brand Preference by the

s customers
Brand Preference
Cadbu 14
ry
Nestle 11
Analysis: More than 55% of the
customers prefer Cadbury over Nestle Chocolates.
A question was asked to all the respondents that whether they
bought/tasted Nestle Kit-Kat atleast once and all the 25 respondents
that they bought/tasted Nestle Kit-Kat. This shows the awareness of
the consumers regarding Kit-Kat.

Factors influencing customers during purchasing a chocolate

Factors Pric Packagi Quali Quanti Flavou Brand Sha

 e ng ty ty rs Image pe

No. of 8 2 5 3 3 3 1
Respondents

Rank 1 4 2 3 3 3 5

Analysis: Most of the customers are influenced by the price

followed by quality. The factors quantity, flavours and brand image
equally influence the customers. Packaging also influences some
customers.

Mean Rating Score of certain factors of Kit-Kat

Analysis: The mean rating score shows the responses of the

customers regarding the various factors of Kit-Kat. It shows that the
respondents are satisfied with the price, taste, quality of the
product. While packaging is not that satisfactory among the
respondents.
Offers No. of
Respondents
Promotional offers
Price Offers 7
Free Gifts 8
Analysis: Most of the respondents Any Other 10
would like to get any other offers Offers
while purchasing the product. Free
gifts and price offers are also preferred by some of the customers.

Factors affecting purchase

Analysis: The chart shows that most of the respondents are

influenced by the advertisements of Kit-Kat pre-purchase. Some
respondents are also influenced by the factors like suggestions from
friends and relatives , attractive display and ingredients.
 Media of Advertisement

Analysis: It can be analysed from the chart that television emerges

to be the best media to compel the customers to buy Kit-Kat.
Hoardings and Newspaper also compels customers to purchase to
some extent.
Frequency of No. of
Frequency of Consumption consumption responde
nts

Once in a 5
fortnight

Daily 5
Analysis: According to the chart, most Weekly 4
of the respondents consume Kit-Kat
Monthly 6
monthly. Many other customers also
consume it daily or once in a fortnight. Quarterly 3

Rarely 2
Brand Loyalty

Analysis: It can be concluded from the chart that most people are
loyal to the brand as they are ready to search it or postpone their
purchase. But the degree of switching over to other brands is also
there.

6. HOWARD SHETH MODEL WITH RESPECT TO NESTLE KIT-KAT

Howard Sheth in 1969 came up with a model of the buying
behaviour of the people. This model came up with a conclusion that
the 5 of the most important things that people would consider
before buying any product:

Attention: Attention of the consumer is the most important step of

the buying behaviour. This is because the consumer first needs to
be aware the product which needs to be sold. In Kit-Kat’s case the
consumer has already been aware of this product since a long time
but new packaging and cheap prices would also divert the minds of
the consumers to this product.
Brand Comprehension: With respect to Kit-Kat there is no issue of
brand comprehension as the brand behind this product is Nestle,
and this company has a good brand image globally. A consumer
who wants to buy chocolate would not think
twice before buying Kit-Kat because it is a product of Nestle and
moreover, Kit-Kat is also well known due to its presence for such a
long time.

Attitude: There has to be the right attitude of the consumer to buy

the product. In Kit-Kat’s case it can be said that there would mostly
be a positive attitude as the rankings shown above and the brand
name does play a vital role in the attitude of the buyer.

Intention: the intention of the consumer towards a product is said

when the consumer is willing to the pay a price for the product and
 has the spending power. In Kit-Kat’s case the intention of the
consumer would be strong as everyone in this world likes chocolate
and Kit-Kat is no exception. So the intention of the consumer would
only change to another chocolate but there would be an intention by
almost every buyer to buy a chocolate. Since prices of Kit-Kat are
low and consumers like chocolate, any buyer of Kit-Kat would have
an intention of buying this product.

Purchase: After all these factors have been considered by a

particular buyer, he/she would then proceed to buy this product. In
Kit-Kat’s case the product has done good sales. So a consumer who
likes chocolates and has never tried out Kit-Kat would buy this
product because it is inexpensive and have a good brand image and
brand name.

7. CONCLUSION
Nestle Kit-Kat is preferred by most of the customers due to its
combination of crisp and crunchy wafers with smooth chocolate. It
has an advantage because its rival doesn’t have any such kind of
identical product. Customers love Kit-Kat and are looking for more
such kind of product in different colours, tastes or varieties.