Institute for Integrated Learning in Management

Graduate School of Management

TITLE

ANALYSIS OF CONSUMER BEHAVIOUR FOR CHOCOLATE INDUSTRY

INTRODUCTION
In this research we have surveyed the product performance and buying behavior of consumer toward various chocolate brands which are consumed by people of all ages. During this research we have interacted with people of Noida and Greater Noida. After this research we came to know how people perceives these products on the variables like price, quality, advertisement, satisfaction, taste, packaging, brand loyalty etc. We also came to know which particular brand of chocolate is most preferred by people of different age groups. In this research we have surveyed that how frequently and how much chocolate they consume, whether they buy small, big or family pack. Trend of ongoing changes in their likings has been shown in the report. In this report we have tried to explain the entire research and facts product wise. SCOPE OF THE STUDY As learning is a human activity and is as natural, as breathing. Despite of the fact that learning is all pervasive in our lives, psychologists do not agree on how learning takes place. How individuals learn is a matter of interest to marketers. They want to teach consumers in their roles as their roles as consumers.

They want consumers to learn about their products, product attributes, potential consumers benefit, how to use, maintain or even dispose of the product and new ways of behaving that will satisfy not only the consumers needs, but the marketers objectives. The scope of our study restricts itself to the analysis of consumer preferences, perception and consumption of different chocolates brands. The scope of our study restricts itself to Noida and Greater Noida region only.

OBJECTIVES OF THE STUDY This project is based on the comparative study of consumer behaviour towards different chocolates brands. Objectives of the study are: 1. The other objective is to know about the customer satisfaction level associated with the product and the customer preference level. 2. To capture the market share by fulfilling the customer needs. 3. To study the factors affecting the consumption pattern.

LIMITATIONS OF THE STUDY In attempt to make this project authentic and reliable, every possible aspect of the topic was kept in mind. Nevertheless, despite of fact constraints were at play during the formulation of this project. The main limitations are as follows: 1. Due to limitation of time only few people were selected for the study. So the sample of consumers was not enough to generalize the findings of the study.

The main source of data for the study was primary data with the help of self-administered questionnaires. Hence, the chances of unbiased information are less. 3. People were hesitant to disclose the true facts. 4. The chance of biased response cant be eliminated though all necessary steps were taken to avoid the same.
2.

CONSUMER PREFERENCE All marketing starts with the consumer. So consumer is a very important person to a marketer. Consumer decides what to purchase, for whom to purchase, why to purchase, from where to purchase, and how much to purchase. In order to become a successful marketer, he must know the liking or disliking of the customers. He must also know the time and the quantity of goods and services, a consumer may purchase, so that he may store the goods or provide the services according to the likings of the consumers. Gone are the days when the concept of market was let the buyers beware or when the market was mainly the sellers market. Now the whole concept of consumers sovereignty prevails. The manufacturers produce and the sellers sell whatever the consumer likes. In this sense, consumer is the supreme in the market. As consumers, we play a very vital role in the health of the economy local, national or international. The decision we make concerning our consumption behavior affect the demand for the basic raw materials, for the transportation, for the banking, for the production; they effect the employment of workers and deployment of resources and success of some industries and failures of others. Thus marketer must understand this. Preference (or "taste") is a concept, used in the social sciences, particularly economics. It assumes a real or imagined "choice" between alternatives and the possibility of rank ordering of these alternatives, based on happiness, satisfaction, gratification, enjoyment, utility they provide. More generally, it can be seen as a source of motivation. In cognitive sciences, individual preferences enable choice of objectives/goals. The study of the consumer preference not only focuses on how and

why consumers make buying decision, but also focuses on how and why consumers make choice of the goods they buy and their evaluation of these goods after use. So for success of any company or product promotion it is very necessary to depart its concentration towards consumer preference.

History of chocolate:
The origin of chocolate can be traced back to the ancient Maya and Aztec civilizations in Central America, who first enjoyed chocolati a muchprized spicy drink made from roasted cocoa beans. Throughout its history, whether as cocoa or drinking chocolate beverage or confectionary treat, chocolate has been a much sought after food.

CONSUMPTION OF CHOCOLATES IN INDIA

Chocolate consumption in India is extremely low. Per capita consumption is around 160 gms in the urban areas, compared to 8-10kg in the developed countries. In rural areas, it is even lower. Chocolates in India are consumed as indulgence and not as a snack food. A strong volume growth was witnessed in the early 90s when Cadbury repositioned chocolates from children to adult consumption. The biggest opportunity is likely to stem from increasing the consumer base. Leading players like Cadbury and Nestle have been attempting to do this by value for money offerings, which are affordable to the masses.

NESTLE
Nestle India
Nestle India is a subsidiary of Nestle S.A. of Switzerland. The company insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships.

Nestle India- Presence Across India

Beginning with its first investment in Moga in 1961, Nestls regular and substantial investments established that it was here to stay. In 1967, Nestl set up its next factory at Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the area into soluble tea. The Nanjangud factory (Karnataka), became operational in 1989, the Samalkha factory (Haryana), in 1993 and in 1995 and 1997,Nestl commissioned two factories in Goa at Ponda and Bicholim respectively. Nestl India is now putting up the 7th factory at Pant Nagar in Uttaranchal.

CHOCOLATES & CONFECTIONARY NESTL KIT KAT NESTL KIT KAT LITE NESTL MUNCH NESTL MUNCH POP CHOC NESTL MILKYBAR NESTL BAR-ONE NESTL FUNBAR NESTL Milk Chocolate

COMPANY OVERVIEW OF CADBURY INDIA

Cadbury began its operations in 1948 by importing chocolates and then re-packing them before distribution in the Indian market. After 59 years of existence, it today has five company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). The corporate office is in Mumbai. Currently Cadbury India operates in three sectors viz. Chocolate Confectionery, Milk Food Drinks and in the Candy category. In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, 5 Star, Perk, clairs and Celebrations. Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world! Their flagship brand Cadbury Dairy Milk is considered the "gold standard" for chocolates in India. The pure taste of CDM defines the chocolate taste for the Indian consumer. In the Milk Food drinks segment their main product is Bournvita - the leading Malted Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is the undisputed leader. The Cadbury India Brand Strategy has received consistent support through simple but imaginative extensions to product categories and distribution. A good example of this is the development of Bytes. Crispy wafers filled with coca cream in the form of a bagged snack, Bytes is positioned as "The new concept of sweet snacking". It delivers the taste of chocolate in the form of a light snack, and thus heralds the entry

of Cadbury India into the growing bagged Snack Market, which has been dominated until now by Salted Bagged Snack Brands. Bytes was first launched in South India in 2003. Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over two decades, it has worked with the Kerala Agriculture University to undertake cocoa research and released clones, hybrids that improve the cocoa yield. Today, Cadbury is poised in its leap towards quantum growth and new categories of business, namely gums, mints, snacking and gifting. It is a part of the Cadbury Schweppes Group, world's No.1 Confectionery Company. CHOCOLATES Dairy Milk 5 Star Perk Celebrations Temptation

AMUL:
Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It is a brand name managed by an apex cooperative organisation, Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk producers in Gujarat, India[1]. AMUL is based in Anand, Gujarat and has been a sterling example of a co-operative organization's success in the long term. It is one of the best examples of co-operative achievement in the developing economy. "Anyone who has seen ... the dairy cooperatives in the state of Gujarat, especially the highly successful one known as AMUL, will naturally wonder what combination of influences and incentives is needed to multiply such a model a thousand times over in developing regions everywhere."[2] The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world[citation needed]. It is also the world's biggest vegetarian cheese brand
[3]

Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual turnover of US $1050 million (2006-07)
[4]

. Currently Amul has 2.6 million

producer members with milk collection average of 10.16 million litres per day. Besides India, Amul has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, China, Singapore, Hong Kong and a few South African countries. Its bid to enter Japanese market in 1994 had not succeeded, but now it has fresh plans of flooding the Japanese markets considered include Sri Lanka. Dr Verghese Kurien, former chairman of the GCMMF, is recognised as the man behind the success of Amul. On 10 Aug 2006 Parthi Bhatol, chairman of the Banaskantha Union, was elected chairman of GCMMF.
[5]

. Other potential markets being

CHOCOLATES
Milk Chocolate Almond bar Bindazz Fundoo Fruit n Nut

FERRERO ROCHER:Ferrero Rocher is a spherical chocolate sweet made

by Italian chocolatier Ferrero SpA, the producer of Tic Tac and Nutella. The sweets consist of a whole roasted hazelnut encased in a thin wafer shell filled with hazelnut cream and covered in milk chocolate and chopped hazelnuts and walnuts. The sweets contain 72 Calories (304 kJ), and are individually packaged inside a gold-coloured wrapper. In Australia, Canada, Brazil, Hong Kong, Singapore, Egypt, and Malaysia[citation needed], Ferrero Rocher is a popular gift during the holidays, especially during Chinese New Year. Chinese culture associates the gold of the packaging with good fortune and wealth

CHOCOLATES

RESEARCH METHODOLOGY

This chapter describes the methodology of the study. This project is based on information collected from primary sources. After the detailed study, an attempt has been made to present comprehensive analysis of consumption of different brands of chocolates consumed by the people. The data had been used to cover various aspects like consumption, consumers preference and customers satisfaction regarding different chocolates. In collecting requisite data and information regarding the topic selected, I went to the residents of Ludhiana and collected the data.

Survey design:

The study is a cross sectional study because the data were collected at a single point of time. For the purpose of present study a related sample of population was selected on the basis of convenience.

Sample Size and Design: Research Period:

A sample of 110 people was taken on the basis of convenience. The actual consumers were contacted on the basis of random sampling. Research work is only carried for 2 or 3 weeks.

Research Instrument:

This work is carried out through self-administered questionnaires. The questions included were open ended, dichotomous and offered multiple choices.

Data Collection:

The data, which is collected for the purpose of study, is divided into 2 bases: Primary Source: The primary data comprises information survey of Comparative study of consumer behavior towards chocolates. The data has been collected directly from respondent with the help of structured questionnaires. Secondary Source: The secondary data was collected from internet, References from Library.

Data Analysis:

The data is analyzed on the basis of suitable tables by using mathematical techniques. The technique that we have used is bar technique.

Table 1:

Liking for the chocolates

Liking of chocolate No. Of Respondents

YES 100 10

NO

TABLE2: DIFFERENT AGE GROUP

AGE GROUPS

0-10

10-20 42

20-30 33

ABOVE 30 11

NUMBER OF 14 RESPONDEN TS

TABLE-3

PREFERENCE ACCORDING TO AGE GROUPS AGE GROUPS 0 TO 10 10 TO 20 20 TO 30 ABOVE 30 CADBUR Y 7 34 24 5 NESTLE 5 6 7 2 AMUL 0 3 2 2 OTHERS 0 0 3 0

TABLE 4: BRAND PREFERENCE BRANDS CADBURY NESTLE AMUL OTHERS

PREFERENCE OF CONSUMERS 70 20 7 3

TABLE 5: PURCHASE OF NESTLE CHOCOLATES SUB-BRANDS KIT KAT MUNCH MILKY BAR BAR ONE MILK CHOCOLATE NESTLE CHOCOLATES NO OF RESPONDENTS 17 19 18 15 11

TABLE 6: PURCHASE OF CADBURY CHOCOLATES CADBURY CHOCOLATES NO OF RESPONDENTS 69 64 61 49 41

SUB-BRANDS DAIRY MILK 5 STAR PERK CELEBRATIONS TEMPTATIONS

TABLE 7: PURCHASE OF AMUL CHOCOLATES AMUL CHOCOLATES NO OF RESPONDENTS 6 3 2 0 1

SUB-BRANDS FRUIT N NUTS FUNDOOZ BINDAAZ ALMOND BAR MILK CHOCOLATE

TABLE 8: PURCHASE OF OTHER BRAND OF CHOCOLATES OTHER SUB-BRANDS NO OF RESPONDENTS 1 3 0 0 0

SUB-BRANDS NUTELLA ROCHER TIC TAC KINDER JOY LEONIDAS

TABLE 9: OVERALL PURCHASE OF CHOCOLATES OVERALL PURCHASE OF MAJOR SUBBRANDS SUB-BRANDS DAIRY MILK 5 STAR PERK CELEBRATIONS TEMPTATIONS KIT KAT MUNCH MILKY BAR BAR-ONE MILK CHOCOLATE FRUIT N NUT ROCHER PERCENTAGE OF PURCHASE 13 12 10 8 7 10 11 11 9 6 2 1

TABLE 10: PREFERENCE OF SUB-BRANDS OF CADBURY CHOCOLATES CADBURY CHOCOLATES SUB-BRANDS GRAND AVERAGE(GRA ND TOTAL/NO OF TOTAL OF RESPONDENTS) PREFERENC E RANK S

DAIRY MILK 5 STAR PERK CELEBRATION S TEMPTATION S

FORM PREFERENCE FORM OF CHOCOLATE HARD NUTTIES CRUNCHY CHEW NO OF RESPONDENTS 33 22 27 18

PROMOTIONAL OFFERS

PROMOTIONAL OFFERS FREE GIFTS PRICE OFFER ANY OTHER

NO OF RESPONDENTS 52 28 20

FACTORS AFFECTING PURCHASE FACTORS ADVERTISEMENT SUGGESTION FROM FRIENDS AND RELATIVES ATTRACTIVE DISPLAY NO OF RESPONDENTS 43 14 11

DOCTORS ADVICE BRAND AMBASSADORS INGREDIENTS

7 16 9

FREQUENCY OF CONSUMPTION

FREQUENCY OF CONSUMPTION

NO OF RESPONDENTS

ONCE IN A FORTNIGHT DAILY WEEKLY MONTHLY QUARTERLY

17 19 40 18 6

REASONABLE PRICE

PRICE OF CHOCOLATE BELOW Rs5

NO OF RESPONDENTS 7

Rs5 TO Rs10 Rs10 TO Rs20 Rs20 TO Rs30 ABOVE Rs30

25 52 5 11

CONSUMERS BRAND LOYALTY

BRAND LOYALTY ACTIONS POSTPONE YOUR

NO OF RESPONDENTS 27

PURCHASE SWITCH OVER TO OTHER BRANDS GO TO OTHER SHOP FOR SEARCH OF PREFERED BRAND 23 50

REACTION OF CONSUMERS IF NEW BRAND IS INTRODUCED

SHIFT TO NEW BRAND OF THE PREFERED PRODUCT

NO OF RESPONDENTS

NO, NOT AT ALL MAY CONSIDER NO, SHALL NOT CANT SAY

37 28 5 30