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MARKETING
RESEARCH

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PRESENTED BY:
ANUJA SHAH 39
DIPARNA SHETYE 45

INDEX
SR CONTENTS PAGE
N NOS
O. .
1 MEANING OF RESEARCH 1
2 MARKETING RESEARCH PROCESS 2
3 RESEARCH DESIGN 4
4 DATA COLLECTION 6
5 STEPS IN QUESTIONNAIRE 12
CONSTRUCTION
6 SAMPLING 16
7. CONSUMER BEHAVIOUR 19
8. FACTORS INFLUENCING CONSUMER 20
BEHAVIOUR
9. THE PURCHASE DECISION PROCESS 22
10. ELEMENTS INFLUENCING THE 23
PURCHASE PROCESS
11. PARTIES INFLUENCING PURCHASE 24
DECISION
12. CADBURY 26
13. MARKET SURVEY 32
14. DATA ANALYSIS 37
14. LIMITATIONS IN RESEARCH 46
15. BIBLIOGRAPHY 47

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 MEANING OF RESEARCH
Research in common parlance refers to a search for knowledge. One can also
define research as a scientific and systematic search for pertinent
information on a specific topic. In fact, research is an art of scientific
investigation. The Advanced Learner’s Dictionary of Current English lays
down the meaning of research as a careful investigation or inquiry especially
through search for new facts in any branch of knowledge. Redman and Mory
define research as a “systematized effort to gain new knowledge.” Some
people consider research as a movement from the known to the unknown. It
is actually a voyage of discovery.

Research is an academic activity and such a term should be used in a

technical sense. According to Clifford Woody research comprises defining
and redefining problems, formulating hypothesis or suggested solutions;
collecting, organizing and evaluating data; making deductions and reaching
conclusions to determine whether they fit the formulating hypothesis.
D.Slesinger and M.Stephenson in the Encyclopedia of Social Sciences
define research as “the manipulation of things, concepts or symbols for the
purpose of generalizing to extend, corrector verify knowledge, whether that
knowledge aids in construction of theory or in the practice of art.” Research
is thus an original contribution to the existing stock of knowledge making
for its advancement. It is the pursuit of truth with the help of study,
observation, comparison and experiment. In short, the search for knowledge
through objective and systematic method of finding solution to a problem is
research. The systematic approach concerning generalization and the
formulation of a theory is also research. As such the term ‘research’ refers to
the systematic method consisting of enunciating the problem, formulating a
hypothesis, collecting facts or data, analyzing the facts and reaching certain
conclusion either in the form of solutions towards the concerned problem or
in certain generalization for some theoretical formulation.

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 MARKETING RESEARCH PROCESS
Marketing research is the systematic design, collection, analysis an reporting
of data and findings relevant to a specific marketing situation facing the
company.

Marketing research process

Define the problem and research objective

Develop the research plan

Collect the information

Analyze the information

Present the findings in Report

Make decisions

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Step 1: Define the problem and the research objectives

The 1st step in research is formulating a research problem. It is most

important stage as poorly defined problems will not yield useful results.
Also the marketing management must be careful not to define the problem
too broadly or too narrowly. In order to identify the research problem, three
categories of symptomatic situations, namely, overt difficulties, latent
difficulties and unnoticed opportunities should be studied. Overt difficulties
are hose which are quite apparent and which manifest themselves. Latent
difficulties are those which are not so apparent and which, if not checked,
would soon become evident. Unnoticed opportunities indicate the potential
for growth in a certain area of marketing. Such opportunities are not clearly
seen and dome effort is required to explore them.

Step 2: Develop the research plan

Designing a research plan calls for decisions on data sources, choice of

research design, research approaches, research instruments, sampling plan
and contact methods.

Step 3: Collect the information

Our research group collected the information over a period of 15 days and
from various locations such as malls, residential complexes, colleges and
schools and also retailers.

Step 4: Analyze the information

After the process of gathering information was completed we tabulated the

data and developed frequency distributions and extracted the findings from
the survey.

Step 5: Present the findings

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Finally we prepared a project report on our survey and along with the
findings we also presented our recommendations.

Step 6: Make the decision

RESEARCH DESIGN
A research design is the detailed blueprint used to guide a research study
toward its objectives. The process of designing a research study involves
many interrelated decisions. The most significant decision is the choice of
research approach, because it determines how the information will be
obtained.

To design something also means to ensure that the pieces fit together. The
achievement of this fit among objective, research approach, and research
tactics is inherently an iterative process in which earlier decisions are
constantly reconsidered in light of subsequent decisions.

Types of Research Designs

The different research designs can be categorized into research design in

case of:
1. Hypothesis- Testing Research Studies (Experimental Studies)
2. Exploratory Research Studies.
3. Descriptive And Diagnostic Research Studies

Hypothesis- Testing Research Studies

• Hypothesis-tested research studies (experimental
studies) are those where the researcher tests the
hypothesis of casual relationship between variables.
• Such studies require procedures that will not only reduce
bias and increase reliability, but will permit drawing
inferences about casuality.
• Professor R.A. Fisher begun such designs when he was
working at Rothamsted Experimental Station (Centre for
Agricultural Research in England).
• Professor Fischer found that by dividing agricultural fields
or plots into different blocks and then by conducting
experiments in each of these blocks, the information

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 collected and inferences drawn happen to be more
reliable.
• This fact inspired him to develop certain experimental
designs for testing hypotheses concerning scientific
investigation.
Difference between exploratory and descriptive research

RESEARCH Types of study

DESIGN

Exploratory of Descriptive /
formulative DIAGNOSTIC

Overall design Flexible design (design must Rigid design (design must
provide opportunity for make enough provision for
considering different aspects protection against and must
of the problem) maximize reliability)

(i) sampling Non- probability sampling Probability sampling design

design design (purposive or (random sampling)
judgement sampling)

(ii) statistical No pre-planned design for Pre-planned design for

design analysis analysis

(iii) Unstructured instruments for Structured or well thought out

observational collection of data instruments for collection of
design data

(iv) operational No fixed design about the Advanced decisions about

design operational procedure operational procedures

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 DATA COLLECTION
The task of data collection begins after problem has been identified. While
deciding about the method of data collection to be used for the study the
researcher should keep in mind two types of data viz, primary data and
secondary.

The primary data are those, which are collected afresh and for first time and
thus happen to be original in character. The secondary are those which have
been collected by someone else and which have already been passed through
statistical process.

The researcher would have to decide which sort of data he would be using
for his study. The method collecting primary and secondary data differ since
primary data are to be originally collected while in case of secondary data
the nature of data collection work is merely that of compilation.

There are several ways of collecting primary data. They are as follows:

1. Observation method
2. Interview method
3. Through questionnaires
4. Through schedules

OBSERVATION METHOD

Observation becomes a scientific tool and the method of data

collection for the researcher when it serves a formulated research.
Purpose is systematically planned and recorded and is subjected to
checks and controls on validity and reliability. Under the observation
method the information is sought by way of investigators own direct
observation without asking from respondent

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SURVEYS [Questionnaire to public]

Surveys are concerned with describing, recording, analyzing and interpreting

conditions that exist or existed. The researcher does not manipulate the
variable or arrange for events to happen Surveys are only concerned with
conditions or relationships that exist, opinions that are held, processes that
are going on, effects that are evident or trends that are developing. They are
primarily concerned with present but at times do consider past events and
influences as they relate to current conditions.
 Survey type researches usually have larger samples because
percentages of responses generally happen to be low, as low as 20 to
30%, especially in mailed questionnaire studies. Thus, the survey
method gathers data relatively from the large number of cases at a
peculiar time; it is essentially cross-sectional.
 Surveys are conducted in case of descriptive research studies, usually
appropriate in case of social and behavioral sciences because many
types of behavior that interest researcher cannot be arranged in
realistic setting.
 Surveys are example of field research and are concerned with
hypothesis formulation and testing analysis of the relationship
between non-manipulated variables.
 Surveys may either be census or sample surveys. They may also be
classified as social surveys, economic surveys, public opinion
surveys. Whatever be their type, the method of data collection
happens to be either observation or interview or questionnaire or
opinionnaire or some projective technique. Case method may as well
be used.
 In case of surveys, research design must be rigid, must make
economical provision for protection against bias and must maximize
reliability, the aim happens to be to obtain complete and accurate
information.
 Possible relationships between the data and the unknowns in the
universe can be studied through surveys.

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COLLECTION OF SECONDARY DATA

Secondary data means that are already available that is they refer to the data,
which have already been collected and analyzed by someone else. When the
researcher utilizes secondary data, then he has to look into various sources
from where he can obtain them. In this case he is certainly not confronted
with the problems that are usually associated with the collection of original
data. Secondary data may be either published or unpublished data. Usually
published data are available in:

 Various publications of the central, state and local government

 Various publications of foreign government or of international bodies
and their subsidiary organization.
 Technical and trade journals
 Books magazines and newspapers
 Reports publication of various associations connected with business
and industry, banks, stocks exchanges etc
 Reports prepared by various scholars’ universities economists etc in
different field
 Public records and statistics, historical documents and other sources of
publish information. The sources of unpublished data are many; they
may be found in diaries, letters unpublished biographies and
autobiographies and also may be available with scholar’s research
workers. Trade organization, labor bureaus and other public/private
organizations

Researcher must be careful in using data. He must make a minute because it

is just possible that the secondary data may be unsuitable or maybe be
inadequate in the context of a problem which the researcher wants to study.

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Selection of appropriate methods for data collection

Nature scope and object of enquiry: This constitutes the most important
factor affecting the choice of a particular method .the method selected
should be such that it suits the type of enquiry that is to be conducted in the
researcher, this factor is also important in deciding whether the data already
available are to be used not yet available are to be collected.

Availability of funds: Availability of funds for the research project

determines to a large extent the method to be used for the collection of data.
When the funds at the disposal of the researcher are very limited, he will
have to select a comparatively cheaper method. Finance in fact is big
constraint in practice and the researcher has to act within this limitation

Time factor: Availability of time has also to be taken into account in

deciding particular method of data collection. Some methods take relatively
more time whereas with others the data can be collected in a comparatively
shorter duration. The time at the disposal of the researcher thus affects the
selection of the method by which the data is collected.

Precision required: Precision required is yet another important factor to be

considered at the time of selecting the method of collection of data.

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Data Collection Instruments

1) PERSONAL INTERVIEW
An interviewer asking questions generally face-to-face to other persons
conducts personal interview. This sort of interview may be in the form of
direct personal investigation or it may be an indirect oral investigation. This
method is particularly suitable for intensive investigations.

2) TELEPHONE INTERVIEWS
This method of collecting information consists contacting information
consists contacting respondents on telephone itself. It is not a very widely
used method, but plays important role in industrial surveys in developed
regions.

3) COMMERCIAL SURVEYS
Commercial surveys can be divided into three types: Periodic, Panel and
Shared surveys. Each of them are discussed below

Periodic surveys
Periodic surveys are conducted at regular intervals, ranging from weekly to
annually held surveys. They use a new sample of respondents for each
survey, focusing on the same topic and allowing the analysis of trends over a
period. Periodic surveys are conducted by mail, personal interview and
telephone.

Panel surveys
Panel surveys, sometimes called interval panels, are conducted among a
group of respondents who have agreed to respond to a number of mail,
telephone or occasionally personal interviews over time. These need not
occur regularly. But a continuous panel or panel data (explained more in
panels) refers to a group of individuals who agree to report specified
behaviors over time.

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Shared surveys
Shared surveys, sometimes referred to as omnibus surveys, are administered
by a research firm and consist of questions supplied by multiple clients.
Such surveys can involve mail, telephone, or personal interviews. The
respondents may be drawn from either an interval panel or random selection.
The main advantage here is the cost factor.

4) AUDITS
Audits involve the physical inspection of inventories, sales receipts, shelf
facing and other aspects of marketing mix to determine sales, market share,
relative price, distribution and other relevant information. The different
types of audits are store audits, product audits and retail distribution audits.

5) PANELS
A panel is a group of individuals or organizations that have agreed to
provide information to researcher over a period of time. A continuous panel,
the focus of this section, has agreed to report specified behaviors on regular
basis. There are 2 types of panels: retail and consumer, consumer further
divided into diary panels and electronic panels.

6) MAIL QUESTIONNAIRE

A mail questionnaire is free from any interviewer’s bias and errors, which
may undermine the reliability and validity of the results emerging from the
survey. A mail questionnaire will not have any distribution bias as it will not
show any particular preference or dislike for a certain individual or
household. When the questions asked to the respondents need time to be
answered and needs some thinking, mail questionnaire is ideal. Mail
Questionnaire saves time in collecting the desired information as a large no.
Of respondents can be approached all over the country. It saves money as
cost of traveling, boarding and lodging of interviewers is not to be incurred.
There is no difficulty in having central supervision and control over the
survey operations over a large region. It avoids the bias arising from any
inhibitions in answering questions. (During some personal questions the
respondents may hesitate to answer them in the presence of the interviewer).
It will not have the problem of non-contacts in the strict sense, as might be
the case in personal interviews when the interviewer finds that the
respondent, being away from home is not available.

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 STEPS IN QUESTIONNAIRE CONSTRUCTION
A Questionnaire is often the heart of a survey operation. If the heart is not
properly set up then the whole operation is bound to fail. Thus studying the
main objective of the questionnaire is important. There are two main
objectives in designing a questionnaire:

1. To maximize the proportion of subjects answering our

questionnaire that is, the response rate: To maximize our response
rate, we have to consider carefully how we administer the questionnaire,
establish rapport, and explain the purpose of the survey. The length of the
questionnaire should be appropriate.

2. To obtain accurate relevant information for our survey: In order

to obtain accurate relevant information, we have to give some thought to
what questions we ask, how we ask them, the order we ask them in, and
the general layout of the questionnaire.

Thus the most important parameters in questionnaire designing can be

described as:
1. Question Content
2. Question Phrasing
3. Question Sequencing
4. Question Layout

1. Question content: For each question in the questionnaire, we should pay

attention to how well it addresses the content we are trying to get at.

Deciding what to ask there are three potential types of information:

Information we are primarily interested in that is, dependent variables.
Information which might explain the dependent variables-that is,

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independent variables. Other factors related to both dependent and
independent factors, which may distort the results and have to be adjusted
for - that is, confounding variables.

Thus while forming the question content the following question must be
answered appropriately.

1. Is the Question Necessary/Useful?

Examine each question to see if there is a need to ask it at all and if
you need to ask it at the level of detail you currently have.
2. Do Respondents Have the Needed Information?
Look at each question to see whether the respondent is likely to have
the necessary information to be able to answer the question.
3. Does the Question Need to be More Specific?
Sometimes the questions are too general and the information we
obtain is more difficult to interpret.
4. Is Question Biased or Loaded?
One danger in question writing is that your own biases and blind spots
may affect the wording.
5. Will Respondents Answer Truthfully?
For each question see whether the respondent will have any difficulty
answering the question truthfully. If there is some reason why they
may not, consider rewording the question.

2. Question phrasing: The way questions are phrased is important and there
are some general rules for constructing good questions in a
questionnaire.

Use short and simple sentences

Short, simple sentences are generally less confusing and ambiguous than
long, complex ones. As a rule of thumb, most sentences should contain one
or two clauses.

Ask for only one piece of information at a time

For example, "Please rate the lecture in terms of its content and
presentation" asks for two pieces of information at the same time. It should

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be divided into two parts: "Please rate the lecture in terms of (a) its content,
(b) its presentation."

Avoid negatives if possible

Negatives should be used only sparingly. For example, instead of asking
students whether they agree with the statement, "Small group teaching
should not be abolished," the statement should be rephrased as, "Small group
teaching should continue." Double negatives should always be avoided.

Ask precise questions

Questions may be ambiguous because a word or term may have a different
meaning.

3. Question sequencing: In order to make the questionnaire effective and to

ensure quality to the replies received, a researcher must pay attention to the
question-sequence in preparing the questionnaire.
• A proper question sequence reduces the chances of the questions
being misunderstood
• The question sequence must be clear and smooth- moving, with
questions that are easiest to answer being put in the beginning.
• The first few questions are particularly important because they are
likely to influence the attitude of the respondent and in seeking his
desired cooperation.
• Following the opening questions are the question that are rally vital to
the research problem and a connecting thread should run through
successive questions.
• Relatively difficult questions must be relegated towards the end so
that even if the respondent decides not to answer such questions,
considerable information would have been obtained.
• The order of the questions is also important. Some general rules are:
-Go from general to particular.
-Go from easy to difficult.
-Go from factual to abstract.
-Start with closed format questions.
-Start with questions relevant to the main subject.
-Do not start with demographic and personal questions.

4.Question layout:

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 • Questions should form a logical part of a well thought out tabulation
plan.

• Questions should basically meet the following standards

-Should be easily understood
-Should be simple
-Should be concrete and should conform as much as possible to the
respondent’s way of thinking.
• Items on a questionnaire should be grouped into logically coherent
sections. Grouping questions that are similar will make the
questionnaire easier to complete, and the respondent will feel more
comfortable. Questions that use the same response formats, or those
that cover a specific topic should appear together.

• Each question should follow comfortably from the previous question.

Writing a questionnaire is similar to writing anything else. Transitions
between questions should be smooth. Questionnaires that jump from
one unrelated topic to another feel disjointed and are not likely to
produce high response rates.

Conclusion: Questionnaire design is a long process that demands careful

attention. Design begins with an understanding of the capabilities of a
questionnaire and how they can help the research. If it is determined that a
questionnaire is to be used, the greatest care goes into the planning of the
objectives. Questionnaires are like any scientific experiment. One does not
collect data and then see if they found something interesting. One forms a
hypothesis and an experiment that will help prove or disprove the
hypothesis.

Questionnaires are versatile, allowing the collection of both subjective and

objective data through the use of open or closed format questions. However,
a questionnaire is only as good as the questions it contains. Mindful review
and testing is necessary to weed out minor mistakes that can cause great
changes in meaning and interpretation. When these guidelines are followed,
the questionnaire becomes a powerful and economic evaluation tool.

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 SAMPLING
Census versus Sample
 Census in simple terms means to measure each element in the group
or population of interest.
 A part of a population, or a subset from a set of units, which is
provided by some process or other, usually by deliberate selection
with the object of investigating the properties of the parent population
or set.
 Surveys of industrial consumers or of distributors of consumer
products are frequently in the form of a census.
 However there are certain reasons, which make census impractical or
even impossible. The reasons are as follows:
1. Cost: Cost is an obvious constraint on the determination of
whether a census should be taken. If information is desired
on grocery purchase and use behaviour (frequencies and
amounts of purchase of each product category, average
amount kept at home and the like) and the population of
interest is all households in a country, the cost will
preclude a census being taken. Thus a sample is the only
logical way of obtaining new data from a population of this
size.
2. Time: The kind of cost we have just considered is an outlay cost.
The time involved in obtaining information from either a
census or a sample involves the possibility of also
incurring an opportunity cost. That is, the decision until
information is obtained may result in a smaller gain or a
larger loss than would have been the case from making the
same decision earlier. The opportunity to make more (or
save more, as the case may be) is, therefore, foregone.
3. Accuracy: A study using a census, by definition, contains no
sampling error. A study using a sample may involve

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 sampling error in addition to other types of error. Other
things being equal, a census will provide more accurate
data than a sample.

However it has been argued that a more accurate estimate of the population
of a country could be made from a sample than from a census. Taking a
census of a population on a “mail out – mail back” basis requires that the
names and addresses of almost all households be obtained, census
questionnaires mailed, and interviews conducted of those not responding.
The questionnaires are sent to a population of which only about half have
completed high school. The potential for errors in a returned questionnaire is
therefore high.

Destructive nature of the measurement: Measurements are sometimes

destructive in nature. When they are, it is apparent that taking a census
would usually defeat the purpose of a measurement. If one were producing
firecrackers, electrical fuses, or gas seed, performing a functional use test on
all products for quality control purposes would not be considered from an
economic standpoint. A sample is then the only practical choice. On the
other hand, if the light bulbs, bicycles, or electrical appliances are to be
tested, a 100% sample (census) may be entirely reasonable.

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The Sampling Process

Step Description
1. Define the population The population is defined in terms of a) element, b)
units, c) extent and d) time.
2. Specify sampling frame The means of representing the elements of the
population – for example telephone book, map, or
city directory – are described.
3. Specify sampling unit The unit for sampling – for example, city block,
company, or household – is selected. The sampling
unit may contain one or several population
elements.
4. Specify sampling method The method by which sampling units are to be
selected is described.
5. Determine sample size The number of elements of the population to be
sampled is chosen.
6. Specify sampling plan The operational procedures for selection of the
sampling units are selected.
7. Select the sample The office and fieldwork necessary for the selection
of the sample are carried out.

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 CONSUMER BEHAVIOUR
Consumer behaviour is the study of how people buy, what they buy, when
they buy and why they buy. It is a subcategory of marketing that blends
elements from psychology, sociology, sociopsychology, anthropology and
economics. It attempts to understand the buyer decision making process,
both individually and in groups. It studies characteristics of individual
consumers such as demographics, psychographics, and behavioral variables
in an attempt to understand people's wants. It also tries to assess influences
on the consumer from groups such as family, friends, reference groups, and
society in general.

Consumption is the “process of production, acquisition, utilization and

destruction of goods, services, experiences or places”

Why should we care?

 In Short run - To understand the behaviors and attitudes of the

consumers when choosing a product or a Brand
 In long run - To detect trends, develop new products and find the
language adapted to the target

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 FACTORS INFLUENCING CONSUMER
BEHAVIOUR

Personal
Social Psychological
Cultural
Age & life
Reference cycle stage Motivation Buyer
Culture Groups Occupation Perception
Subculture Family Economic Learning
Social Class Roles and situation Beliefs &
status Lifestyle Attitudes
Personality

1. Cultural factor
Subculture
 People with shared value systems based on common life experiences
and situations. Subcultures include nationalities, religions, racial
 Groups, and geographic areas.
 The HSBC bank in Canada, web site in Mandarin and Cantonese [in
addition to English and French] to court the growing and
 Affluent Asian community.

2. Social factor
Family

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  Family members can strongly influence buyer behaviour. Husbands,
wives, and children have varying influences on different product and
services.
 Family buying influences: Lowe’s targets women shoppers who
initiate 80% of all home improvement decisions. Lure women and
they will drag their husbands behind them.

3. Personal factor

Lifestyle
 A person’s pattern of living as expressed in their activities, interests,
and opinions. It profiles a person’s whole pattern of acting and
interacting in the world.
 To promote its premium image to a new target market, Sleeman beer
ads reveal a dynamic and sophisticated city image.

4. Psychological factor

Attitude
 A person’s consistently favorable or unfavorable evaluations, feelings,
and tendencies toward an object or idea.
 Attitudes are difficult to change, but the Milk processor’s wildly
popular milk moustache campaign succeeded in changing attitudes
towards milk.

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THE PURCHASE DECISION PROCESS

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 4.
PURCHA
SE

3. EVALUATION OF 5. POST-PURCHASE
ALTERNATIVES EVALUATION

2. INFORMATION
SEARCH LOYALTY

1. NEED [PROBLEM RECOGNITION]

ELEMENTS INFLUENCING THE PURCHASE

PROCESS

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 PURCHA
SE

INVOLMENT SATISFACTION

MEMORIZATION
LOYALTY

PERCEPTION

NEED

1. Need is different from motivation

- Need is a state of tension, while motivation is the force
that pushes to reduce this state of tension

2. It’s difficult to create a need

3. Needs can be
- Conscious but not declared
- Unconscious

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 PARTIES INFLUENCING THE PURCHASE
PROCESS

FRIENDS

FAMILY OPINION
LEADERS

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Family

Household:

– A group of persons who share a same principal residence,

whatever the links, of kinship or others, that unite them. A
household can be reduced to a single person.

Family:

– Part of a household constituted either by a couple (married or not),

and, if need be, their children or by a person without spouse and
his/ her children.

Friends and Opinion leaders

Friends:

– Group of belonging
– Reference group
– From group to tribe

Opinion leaders:

– “One is considered as leader when he/ she are recognized as such by

the others”
– A leader in a category of products is not necessarily leader in
another

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“THE SWEET TOOTH OF THE WORLD”

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 CADBURY INDIA
Background

Cadbury Schweppes is the No.1 confectionery and third largest soft drinks
company in the world. The origin of the group goes back to over two
centuries. Some of the popular international brands of the company are
Cadbury Dairy Milk, Dr Pepper, Flake, Trebor Basset, Snapple and Motts.
The company also has Halls, Clorets, Trident, Dentyne and Bubbas bubble
gum range in its portfolio with acquisition of Adams in December 2002.

Since 1969, Cadbury Schweppes’ has focused on confectionery and non-

alcoholic beverages. In 2004, 60 per cent of the Group’s net sales came from
confectionery and 40 per cent from beverages. The company employees
around 55,000 people in over 200 countries around the world.

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Cadbury in India

Cadbury India is a wholly owned subsidiary of Cadbury Schweppes which

has operated in the country for more than 55 years. It was originally
incorporated as a wholly owned subsidiary of Cadbury Schweppes Overseas
Ltd in 1948. The company today employs nearly 2,000 people across India.
Cadbury India is the No. 1 confectionery company with a 70 per cent market
share in India. It is a dominating player in the Indian chocolate market with
strong brands like Dairy Milk, Five Star, Perk, Gems, etc. Dairy milk is the
largest chocolate brand in India.

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Cadbury is mainly into three segments

1. Chocolates - Cadbury India is the market leader in the chocolate

confectionery market in India with over 70 per cent market share. The
leading brands in this category are Cadbury’s Dairy Milk, Fruit & Nut,
Crackle, Temptations, 5 Star, Perk & Celebrations Gift boxes. For more than
five decades now, Cadbury has enjoyed leadership position in the Indian
chocolate market to the extent that 'Cadbury’ has become a generic name for
chocolate products. Cadbury has leading brands in all the segments viz bars
(Dairy Milk, Crackle, Temptations), count lines (5 star, Milk Treat), panned
confectionery (Gems) and wafer chocolates (Perk), éclairs (Cadburys'
Eclairs), toffees (English Toffee).

2. Sugar Confectionery – Cadbury Dairy Milk Eclairs is one of the leading

brands in this category. It is amongst the largest éclair brands in the market
in terms of value share. Cadbury also owns Halls (which was acquired as a
part of the global acquisition of the Adams business from Pfizer in 2003).
Halls is amongst the largest brands in its segment of Minty / Breath
freshness brands in India.

3. Food Drinks – Cadbury’s Bournvita is a leading brand in the brown

drinks segment of milk / malted food products. Cadbury’s other products
include Drinking Chocolate and Cocoa powder. Overall share in the malted
food drinks market is estimated to be around 19 per cent.

The company has recently made a foray into snacking category with
Cadbury Bytes, its sweet snacking brand. The company has been performing
well in India. The net sales of the company have increased from around US$
131.6 million in 2000 to US$ 166.3 million in 2004.

33
Factors for Success
1. Extensive distribution network
Cadbury’s brands are available in over a million outlets across the
country. The distribution network directly covers almost the entire
urban population. The company has invested significantly in building
such an extensive network. The company uses Information
Technology to improve its logistics and distribution competitiveness.
Cadbury has improved the distribution quality of its products with the
installation of refrigerators at several outlets. This helps in
maintaining product quality in summer, when sales usually dip due to
the fact that the heat affects product quality and thereby consumption.

2. Creation of strong brands

Cadbury owes its success to strong brand equity and resultant
consumer preference that it enjoys in India. The company has built
strong brand equity through consistently high product quality,
relevant, insightful and entertaining communication. Cadbury has
developed new channels for marketing its brands such as Gifting and
Snacking. The company places great emphasis in ensuring display
dominance at the point of purchase

3. Customization of products for India

Cadbury India has spent time in understanding the Indian consumers.
Leveraging its 55 years of experience in India, the company has
customized its products to the Indian markets. It also offers products
at affordable price points so as to increase its market penetration.

4. Leveraging the India Advantages

Though, India contributes to less than 5 per cent of the global
revenues today, India is critical to the global strategy of the company

5. Managerial Talent
Cadbury has begun recruiting management graduates in India to serve
its global operations.

34
6. Huge market potential
India offers huge market potential and is a priority market for
Cadbury. The company also leverages India as a manufacturing base
for producing products for the overseas market. Cadbury India has 4
company owned factories and as many third party manufacturing
contractors. It also has a wide Sales & Distribution infrastructure
consisting of 33 depots managed by 4 regional sales branches across
India.

35
 MARKET SURVEY FOR CHOCLATES
QUESTIONNAIRE FOR CONSUMERS

Name : ____________________________________________

Gender : _____________

Age group :

 16-20 yrs
 21- 30 yrs

What do you normally prefer to eat as a sweet item

___________________________

Do you like chocolates?

 Very much
 Okay
 Not much
 Not at all

How many times you buy chocolates?

 Once every day

 2- 3 times a week
 Once a week
 On special occasions only
 Others, please specify

What do chocolates signify to you?

________________________________________

36
Where do you normally buy chocolates from?

 Your local kirana shops

 Supermarkets like Big Bazaar

Rate your preferences in choice of chocolates on a scale of 1-5 (5 being

highest rank)

 Taste
 Sweetness
 Price
 Calories
 Brand of the chocolate
 Packaging
 Ingredients/ flavors

Which brand of chocolates you prefer?

 Nestle
 Cadbury’s
 Amul
 Foreign brands like Hershey’s
 Any other, please specify
_______________________________________________

Why do you prefer that particular brand?

_____________________________________________________________
_____________________________________________________________

Is there anything that you feel is lacking in your preferred brand of

chocolates? If yes, please describe
_____________________________________________________________
_____________________________________________________________

Do you think that the present choices available in chocolates are costly?
If yes, what will be your ideal price range?

37
Would you prefer to switch to chocolates of another brand if it is
cheaper than your preferred brand without any change in quality &
taste?
_____________________________________________________________
_____________________________________________________________

Do continue eating chocolates of a company if it has some controversy in

market or do you lose trust?

 Yes
 No

Does a Personality like AMITABH BACHHAN or RANI MUKHERJI

or PREITY ZINTA influences your decision of buying a particular
brand of chocolate?

 Yes
 No
 Not completely

38
 MARKET SURVEY FOR CHOCOLATES
QUESTIONNAIRE FOR RETAILERS

Name of the shop :

________________________________________________________

Location :
_____________________________________________________________

Which brands of chocolates does the shop sell?

_____________________________________________________________
_____________________________________________________________

Highest sales of which brand of chocolates (i.e. how many in 1 day)

_____________________________________________________________
___________

What are customer’s preferences in the choice of chocolates?

 Taste
 Sweetness
 Price
 Calories
 Brand of the chocolate
 Packaging
 Ingredients/ flavors

Sales of chocolates are highest during which period?

_____________________________________________________________
___________

39
Are there any customer complaints about the existing brands of
chocolates?

_____________________________________________

Has the demand for chocolates risen in the past few years?

_____________________________________________________________
___________

40
 DATA ANALYSIS FOR CONSUMERS
Sample Size: 25 respondents
20 consumers – 82%
5 retailers – 18%

SAMPLE SIZE

Retailers
18%

Consumers
Retailers

Consumers
82%

20 Consumers:
9 males – 46%
11 females – 54%

CONSUMERS

Males
46% Males
Females
Females
54%

41
Age group: 16-20 years: 10 respondents
Males: 4 respondents
Females: 6 respondents

AGE GROUP : 16 - 20

Females Males
40% Males
60% Females

Age group: 21-30 years: 10 respondents

Males: 5 respondents
Females: 5 respondents

AGE GROUP: 21-30

Females Males Males

Females
50% 50%

42
Normally prefer as a sweet item

Chocolates: 53%
Ice creams: 11%
Traditional Sweets: 28%
Cake: 6%

PREFERENCE AS A SWEET ITEM

6% Chocolates
29% Ice creams
54% Traditional Sweets
11% Cake

Do you like chocolates?

Very much: 59%

Okay Okay: 28%
Not much: 11%
Not at all: 2%

43
 LIKE AND DISLIKE OF CHOCOLATES

2%
11%

Very much
Okay Okay
28% Not much
59%
Not at all

How many times do you buy chocolates?

Once every day: 33%

2-3 times a week: 30%
Once a week: 12%
Special occasions: 25%

BUYING PATTERN

Special
occasions Once every
25% day Once every day
33%
2-3 times a week
Once a Once a week
week
Special occasions
12%
2-3 times a
week
30%

Where do you normally buy chocolates from?

Kirana shop: 79%

Supermarkets: 9%
Both: 12%

44
 PREFFERED DISTRIBUTION
CHANNEL

12%

9%
Kirana shop
Supermarkets
Both

79%

Which are the top attributes a consumer looks for while making his decision?

28% respondents said taste was the most important factor of selection
27% respondents said brand was the most important factor of selection
25% respondents said ingredients/ flavours was the most important factor of selection
20% respondents said packaging was the most important factor of selection

PREFERENCES

Packaging
Taste
20%
28% Taste
Brand
Ingredients
Ingredients
Packaging
25% Brand
27%

On an average the scale of preference was as follows:

1st priority: Taste
2nd priority: Brand
3rd priority: Packaging

45
4th priority: Flavors
5th priority: Sweetness/less sweet
6th priority: Calories
7th priority: Price

Which brand of chocolates you prefer?

Cadbury’s: 57%
Nestle & Cadbury: 18%
Cadbury & Foreign Brands: 10%
Only Foreign Brands: 9%
Amul: 2%
Nestle: 2%
Nestle & Foreign Brands: 2%

MARKET LEADER
2% Cadbury’s

2%
Nestle & Cadbury
2%
9% Cadbury & Foreign
Brands
10%
Only Foreign Brands

57%
18% Amul

Nestle

Nestle & Foreign

Brands

46
Why do you prefer your choice of brand?

Majority of the respondents said that they liked a particular brand of their choice
especially Cadbury because of taste, quality and most importantly brand name and
packaging.

Is there anything lacking according to you in your preferred brand? (amongst the
existing varieties)

No: 84%
Yes:16%
SATISFACTION GRAPH

Yes
16%

No
Yes

No
84%

The respondents who replied yes, have stated the following attributes as lacking in the
existing varieties of chocolates:
• Lack of chocolates in attractive shapes
• High price
• Not enough crunchier
• Not good as compared to foreign brands

47
Are the present choices available in chocolates, costly? If yes, what will be your ideal
price range?

Yes: 45%
No: 55%
PRICES: HIGH OR LOW

Yes
45% No
No
Yes
55%

Would you prefer to switch to another brand?

Yes: 53%
No: 43%
Indifferent: 4%

48
 PRICE SENSITIVITY OF CONSUMERS

Indifferent
4%
No No
43%
Yes
Yes
53% Indifferent

DATA ANALYSIS OF RETAILERS

Which brand of chocolates does shop sell?

22% of retailers stock cadbury’s

19% or retailers stock Nestle
13% of retailers stock Amul
3% of retailers stock imported brands.

Which brand has the highest sales?

HIGHEST SALES

Nestle, 3, 14%

Cadbury's
Nestle
Cadbury's, 19,
86%

When is the sale of chocolates the highest?

49
 All Time, 3,
14%

Festivals
All Time

Festivals, 19,
86%

Sales are normally higher during Festivals. Special occasions like Valentines Day,
Friendship day.

LIMITATIONS OF THE RESEARCH

1. Large size of target population

The target population of chocolates is each and every person with teeth right
from children to old people. Our sample size of 25 thus cannot be said to be
the correct representation of the target market.

2. Fragmentation

Chocolates are not only sold in exclusive shops but also sold in simple retail
shops. Thus it is very difficult to estimate the sales and buying pattern of
consumers in general.

50
 BIBLIOGRAPHY

BOOKS REFERRED

BOOK NAME AUTHOR’S NAME

MARKETING MANAGEMENT PHILIP KOTLER

WEBSITES

www.cadburysindia.com
www.cadbury.com
www.cadburydairymilk.com
www.cadburyltd.com
www.google.com
www.wikipedia.com
www.ask.com
www.rediff.com

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www.yahoo.com

NEWSPAPERS REFERRED MAGAZINES REFERRED

1. BRAND LINE 1.COMPETITION SUCCESS REVIEW

2. ECONOMIC TIMES

52