50541270 consumer behaviour towards chocolate
DESCRIPTION
an research on coclate behaviorTRANSCRIPT
PROJECT ON
“CONSUMER BEHAVIOR TOWARDS CHOCOLATEBRANDS”
BACHELOR OF MANAGEMENT STUDIES
SEMESTER VI
SUBMITTED:-
IN PART FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF BACHELOR OF MANAGEMENT
STUDIES
BY
NADEEM M. SHAFI
ROLL NO.107
K.JSOMAIYA COLLEGE OF ARTS & COMMERCEVIDYAVIHAR
1
K.J.SOMAIYA COLLEGE OF ARTS &COMMERCE
VIDYAVIHAR
CERTIFICATE
This is to certify that Mr.Nadeem M. Shafi of T.Y.B.M.S, Semester VI (2011-2012) has
successfully completed the project report on “CONSUMER BEHAVIOR TOWARDS
CHOCOLATE BRANDS” under the guidance of Prof.Smita Dayal.
PROJECT GUIDE PRINCIPAL
INTERNAL EXAMINER COURSE CO-
ORDINATOR
EXTERNAL EXAMINER
2
DECLARATION
I MR.NADEEM MAQSOOD SHAFI of class B.M.S SEMESTER VI (2011-2012)
hereby declare that I have completed the project on “CONSUMER BEHAVIOR
TOWARDS CHOCOLATE BRANDS” whatever the data/information have been taken
from any book or other sources the same have been mentioned in the bibliography.
The information submitted is true and original to the best of my knowledge.
(Signature of Student)
(Name of the Student)
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ACKNOWLEDGEMENT
A student always collects some bouquets and brickbats while collecting the information
about the project he/she has undertaken. If there is a bouquet, I would like to share them
with those who have played a part in its making. I would like to express my sincere
gratitude towards my project guide Prof.Smita Dayal who made me confident to
choose this topic and helped me in the preparation of this project. I really and thankingly
appreciate her effort for helping me in making this project, which has enhanced my
knowledge. I am also thankful for the insight that I have gained through numerous
discussion with her.
At the same time, I would also like to thank our principal Mrs.Sudha Vyas and
my professors for their motivation & support. I am also indebted to all my friends and
family members for their help and constant support.
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CONTENTS
Introduction to the study 6-8
Origin of chocolate 8-15
Cadbury 16-22
Nestle 23-27
Amul 28-40
Consumer behavior 41-45
Objectives of the study 46
Research Methodology 47-48
A. Problem Statement 49
B. Research Design 49-50 Area of Study Objective of the Study
C. Data Collection 50 Data Collection Methods Data Collection Techniques
D. Sampling Design 50-53 Sampling Unit Sample Size Sampling Techniques Limitations of the study
Analysis & Interpretation 54-65
Findings & Conclusion 66-67
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Suggestions 68
Annexure 69-75
Questionnaire Bibliography
INTRODUCTION TO THE STUDY
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INTRODUCTION
This project is about preference of the consumers towards FMCG products i.e. chocolates
in domestic market (in special context of nestle, Cadbury & Amul chocolates)
The story of chocolate began in the new world with the Mayans, and also the word
chocolate comes from the Mayan word xocoatl, and the word cocoa from the azlec
cacahuati, who drank a dark brew called cacahuaquchtl. Later, the Aztec consumed
chacahoua and used the cocoa bean for currency. In 1523, they offered cocoa beans to
Cortez, who introduced chocolate to the world, where it swiftly became a favorite food
among the rich and noble of Europe.
From the beginning, turning raw, bitter cocoa beans into what one 17th century writer
called “the only true food of the gods” has been a fine art, a delicate mixture of alchemy
and science. Centuries ago it was discovered that fermenting and roasting the beans could
create an almost otherworldly flavor. In 1875, after years of trying, a 31-year-old candy
maker in vevey named Daniel peter figured out how to combine milk and cocoa power.
“The ancient Aztecs believed chocolate to be the FOOD OF THE GOD” Firstly, there is a need to know about the chocolate…that what is chocolate. Why chocolate is the most popular dessert flavoring around.
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MEANING OF CHOCOLATE:-1. A preparation of the seed of cocoa, roasted, husked, and ground (without
removing any of the fat), often sweetened and flavored, as with vanilla.
2. A beverage or confection made from this.
3. Dark brown.
4. A divine substance inspiring passion in those who consume it.
ORIGIN OF CHOCOLATE
The word chocolate comes from the Mayan word xocoatl, and the word ‘cocoa’ from the
Aztec cacahuatl. In Mexico, the beverage was called chocolath, from lath (water) and
choco. Supposedly the Spaniard found the Mexican word har to pronounce and called it
cacao. Chocolath, chocolath, chocolath. Puff puff. See? I did it! (But let’s stick to cocoa)
*LoI*
From cocoa to chocolate
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Sorting, clearing, frying, crushing, grinding is the only small part of stages of production
cycle transforming cocoa beans in chocolate, which we eat.
Chocolate is really the unique product, tasty, highly nutritive (about 550 kkal in 100gm of
a product), capable to be stored by years without change of properties. It contains 50-55%
of carbohydrates, 32-35% of fat, 5-6% of fibers. And also tannin substances (4-5%),
stimulators-the bromine and caffeine (1-1.5%), microelements Na, K, Mg, P, Fe and
vitamins B1, & B2.
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HISTORY OF CHOCOLATE
The discovery of cocoa was only a first step in the direction of chocolate. The Mayas
were the first to cultivate the cocoa bean for the fruits it yielded. They used the beans as
an ingredient in their favorite chocolate drink ‘xocotlatl’.
Legend suggests that the first beans came out of paradise and lent wisdom and power to
the person that ate them. For obvious reasons, the use of cocoa was kept to a minimum by
the emperors.
Before the Spanish explorers discovered the New World, chocolates and other “exotic”
foods were totally unknown in Europe. Columbus was the first European to become
acquainted with cocoa, but he wasn’t exactly impressed.
During one of his conquest in the New World he met the Aztecs. For many generations,
they drank an infusion of grilled seeds and spices. This mixture tasted disgusting and it
also contained cocoa beans. The Aztecs adopted the ides of cocoa consumption from the
Mayas.
However the conquistadors pizzaro and, in particular, Cortes did show interest in the
bean. Fernando Cortes reached the east coast of Mexico in 1519. as an honored guest of
Montezuma (Aztec emperor and inveterate chocolate fanatic) he was offered xocotlatl –a
small portion of aromatic chocolate drink mixed either vanilla, pepper and other herbs.
For the Mayas, cocoa beans were very important, not only were they a poplar means of
exchange, they also had a religious value. The Mayas sacrificed cocoa beans at the
funerals of the upper class.
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EVOLUTION OF CHOCOLATE
Chocolate is created from the cocoa bean. A cacao tree with fruit pods in various stages
of ripening
(1753-1849)
1753 Swedish biologist Carolus Linnaeus revealed his feeling for chocolate
while attending to the task of classifying organisms in a binomial system.
To the chocolate
tree he gave the botanical name of theobroma cacao. Cacao refers back to
the original native language. Theobroma is a Latin term that translates to
“food of the gods”.
1765 In 1765 the Englishman James Watt invented the steam engine and in doing
so set in motion what we now refer to as the industrial revolution. Around
the same time in the colony of Massachusetts one of the first machine
oriented chocolate manufacturing businesses was being established. The
partnership of John Hannon, an Irishman, and Dr. James Banker of the
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Massachusetts colony formed the company Hannon’s Best chocolate.
Through the use of an old grist mill, cacao beans were ground into
chocolate liquor, pressed into cakes of paste for eventual use as a
chocolate beverage. During a routine trading mission to the West Indies,
Hannon was presumed dead when his ship failed to returned. The name of
the company subsequently changed to the Baker Company. It was not until
1927 that the Baker family sold their business to General Foods.
1774 The mysterious rumors that surrounded the death of pope clement XIV,
give credence to the notion that chocolate had become a favorable way of
distinguish poison. The pope died after consuming a chocolate beverage,
which also killed the unwritten confectioner who shared in the
consumption. Through there is no proof, the Jesuits are suspected to have
arranged his demise. The pope had been in opposition to the Jesuits, and
they were known chocolate drinkers. So the conclusion, while not
provable, is not unfounded.
1819 Francois Louis Cailler opened a chocolate factory on lake Geneva near
Vevey. He used machinery he had developed himself, making him a
pioneer in the evolution of Swiss chocolate.
1828 Chocolate maker and chemist Coenraad Van Houten developed the
process now known as “Dutching.” His patented invention involved the
removal of close to half of the cocoa butter from chocolate liquor through
the use of hydraulic pressure. The removal of the cocoa butter resulted in a
commensurate decrease in fat content. Instead of fifty percent, the hard
cake that was let from this process had a fat content of only Twenty-Five
percent. The cake could then be crushed into a powder. The use of alkaline
salt allowed for easier mixing with warm water. It also made the color
darker and had the pleasing affect of a less bitter taste. This invention
would be the key in the development of chocolate as a confection.
1847 Joseph Fry was a Quaker who began manufacturing chocolate under the
name of Joseph Fry & Sons. While the original Joseph Fry left the
company to become a type founder, his sons continued the business. One
of his sons, another Joseph Fry, purchased a Watts steam engine in 1789 to
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more efficiently grind cacao. A great-grandson of the original Joseph Fry
led the business toward the development of edible chocolate. Hoe found
that by remixing some of the cocoa butter back into the processed
“Dutched” cocoa powder and adding sugar, a paste was formed that could
be pressed into molds. The effect of this was a chocolate bar that gathered
as much attention as chocolate beverages had.
1849 Ghirardelli, an Italian native, planned early on having a chocolate
business. However, he traveled first to Uruguay and then to Peru before
setting in California in 1849. Though he had been attracted by the Gold
Rush, he soon learned that there was more reliable profit to be had selling
tents to other gold miners than in actual mining. He used the money he
saved and started the Ghirardelli chocolate factory, which is still located in
San Francisco.
(1850-1986)
1850’s Prime Minister William Gladstone, in an effort to boost the economy,
lowered the taxes on cacao beans, allowing British manufacturers to
expand their market.
1860 British FDA is founded. A British journal called the Lancet discovered
that many chocolate manufacturers were employing various methods of
“Cutting” chocolate with something less expensive. One report revealed
that cocoa powder was being thinned with brick powder. Stirred to
respond, the British government passed its first food and drug act in 1860.
1868 John Cadbury was another Qyaker who became interested in chocolate
production. In 1824 he had opened a Grocery store in Birmingham,
England. Cadbury featured cacao beans that he would roast and grind
himself. In time he realized the interest and profitability in changing his
focus to manufacturing of chocolate. Cadbury became so renowned that he
received a Royal Warrant in 1854 to be the single cocoa and chocolate
provider for Queen Victoria. Richard and George Cadbury took over their
father’s business and in 1866 purchase a Van Houton machine. They
began to market Cadbury cocoa powder. By 1868, the Cadbury Company
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produced the first box of chocolate candies. Their business continues to
flourish, and in 1879 they took over the Birmingham suburb of
Bourneville. The factory they built there supported a town, providing both
worker housing and recreational facilities.
1879 During the same period that Cadbury was developing into a formidable
chocolate force, a Swiss chocolate manufacturer was struggling to find a
way to combine chocolate with milk. Daniel Peter could not produce
something with a smooth consistency because the milk could be made
more shelf-stable for use a baby formula. The product of Nestle’s
experimentation was a sweetened condensed milk. The new milk, which
had lesser water, was mixable with chocolate and made a product that
would not spoil easily. Henri Nestle and Daniel Peter formed a company
in 1879. Today, the largest food company in the world is Nestle.
1879 A conching machine was created in 1879 that allowed for the smoothest
chocolate yet. Rudolf Lindt used a concave granite bed where chocolate
liquor, sugar, and milk if desired, would be ground back and forth by
heavy rollers. Lindt named his chocolate Fondants because their texture
was as smooth as the popular creamy candies. The process of conching
soon became a part of common chocolate manufacturing. In addition, the
friction of the rollers produced a heat that made roasting an unnecessary
steps. Today, the rollers in conching machines are kept at a controlled
temperature for an even higher quality.
1893 Milton Suavely Hershey was a Mennonite from Pennsylvania who owned
a caramel manufacturing plant. When he visited the world Colombian
Exposition in Chicago his interest was initially to purchase and use
machines to make chocolate covered candies. His interest changed course
after visiting Europe and researching the many chocolate manufacturers
there. Hershey then decided to focus his business on chocolate production
and in 1900 he introduced to the world the milk chocolate Hershey bar. It
was followed five years later by the Hershey kiss. With business
expanding beyond expectation, Milton Hershey took over the town of
Derry Church, Pennsylvania and renamed it Hershey. Thought he also
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developed a Hershey, Cuba around a sugar mill he owned, Milton Hershey
was focused out of Cuba in1959 when Castro gained control. Today
Hershey, Pennsylvania is an impressive tourist attraction.
1908 The triangular Toblerone chocolate bar was created and launched into
market by Swiss chocolate maker Jean Tobler.
1913 Swiss chocolate maker Jules Sechaud invented the chocolate filled
bonbon.
1929 At the end of the twentieth century Cella’s Confections, on West
Broadway and canal, was a part of many factories that made up New York
City’s confectionary district. In 1929 their candy factory began
manufacturing chocolate-covered cherries. Today, while the other
confectioneries have disappeared, Cella’s remains.
1936 Philip Silverstein owned a candy company on Delancey Street in New
York City. In 1936 he created a thick, nut and raisin filled chocolate bar,
known as the Chunky Bar.
1940’s As the United States geared up for a war in Europe, Militon Hershey
suggested an addition be made to the standard soldier’s “D-Ration.” The
American military began to include three 4 ounce, 600 calorie chocolate
bars in each “D-Ration.” While from today’s perspective this may seem
odd, the Aztecs had used chocolate for the edification of their own
warriors. In addition to lifting the energy and spirits of the troops during
World War II, the chocolate bars became associated with peace, as
malnourished holocaust survivors were rescued by American troops
offering chocolate.
1986 When Jim Walsh left his life as an adventures executive in Chicago, he
decided to move to Hawaii to start a chocolate business. He purchased
plantations on Kea’au and Kona, and decided to use the fine criollo cacao
beans for his foundation. The beans he harvested are sent to California,
after they have been fermented and dried, and are processed into high
quality chocolate. Only available through mail order, the chocolate is used
primarily by pastry chefs.
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MAJOR PLAYER IN THE MARKET
CADBURY (INDIA)
Trading at rs.850, the Cadbury (India) stock presents a good long-term investment option.
After hitting a high of Rs. 981 in March 2000, the stock retraced to its present level. The
current price discounts the latest EPS 49 times. With good growth protects ahead and a
strong financial background, the stock may hold good potential for steady returns over
the long term.
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Cadbury (India), subsidiary of Cadbury Schweppes Overseas, is one of the leading
players in the chocolate and sugar confectionary segment. The parent has a 51 percent
stake in the company. For the year-ended December 1999, close to 76 percent of the sales
turnover was derived from chocolate followed by malted foods (22 percent).
Cadbury (India) has for long been the leading player in the chocolate industry. It is
virtually a household name with leading brands such as Five Star and Dairy Milk. Of late,
the company has been flooding the market with new launches. Among the successes of
recent years are Perk and Picnic.
In the malted food segmented, Bournvita is one among the popular brands. However, the
health- drink segment has failed to lead support to the company’s bottom-line in the
recent past. Volumes in Bournvita have been deciding for some time. However, this is not
likely to be a drag on the profitability.
Cadbury (India) has levered on its marketing strengths and product range. Competition
may stem from players such as nestle in the near term. Apart from this, other new players
such as Mars and Hershey’s may have an impact on the level of competition. However,
the reduction in the excise duty on malted drinks and chocolates and the lower import
duties on cocoa is likely to have a positive impact on the cost-structure of the firm.
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The earnings performance of 2000 first quarter was impressive. Sales revenue rose 20 per cent to Rs. 139.34 crores compared to the corresponding previous period. Operating
margins declined marginally from 16.4 per cent to 15.7 per cent. Post-tax earnings rose an 11.5 per cent to Rs. 10.34 crores. If the top line growth is sustained at this level, it could provide a boost and growth over the long term. Shareholders can stay invested. Cadbury was controversially taken by Kraft co.ltd in February 2010.Cadbury’s market share in India is 79% History
Started business in 1948 in India. The company was incorporated as Cadbury-Fry (India) Pvt. Ltd.
Founder: John Cadbury in Birmingham, UK in 1824 Current MD: Mr. Rajiv Bakshi Turnover: 450 Cr. No. of offices: 4 Staff Strength – 2000 approx.
1. Branch Manager is responsible for the entire Branch Function
2. Promotional Materials – Network ad, Media, POS Materials like posters, danglers, dispensers etc.
3. Target – All age groups 4. Distribution: Through C&F Agents → Re-distributors → Retailers →
consumers Godown: 1 in Delhi Office: 1 in Delhi Avg. No. of calls per day by S.O.: 35 Sales Reporting – weekly basis
5. Sales Kit: Daily call report, product folder, price list, calculator, etc. 6. Organisational Structure: 7. Key products: Cadbury’s Dairy Milk, 5 Star, Fruit & Nut, Bournvita etc.,
Perk
COMPANY BACKGROUND
In 1930 R Hudson and Company finally joined with Cadbury. This gave the flourishing local firm a direct link with one of the greatest in international chocolate manufacturing and marketing. Over the years the company has been involved with many other long standing brands and entrepreneurs – names such as Fry – a chocolate brand dating back to 1756, and of course Schweppes which is still part of the Cadbury group internationally although not in New Zealand.
In 1969 Cadbury Fry and Schweppes merged internationally with the New Zealand Company becoming known as Cadbury Schweppes Hudson Limited in 1973.
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In 1986 Cadbury Schweppes Hudson merged with Cadbury Schweppes Australia. The result was a truly international operation with both the New Zealand and Australian companies supplying each other. Cadbury Schweppes Australia is a fully owned subsidiary of Cadbury Schweppes plc, the United Kingdom based parent company.
Most recently, in 1990 Cadbury required the Griffins confectionery business, and sold the Hudson biscuit operation in a reciprocal agreement. The Griffins business dates back to before the turn of the century. George Griffin established the company when he opened a small confectionery business at Nelson.
Finally, in 1991 we became known as Cadbury Confectionery Ltd, and can now boast dominance in New Zealand’s chocolate and sugar confectionery markets. With manufacturing bases in both Dunedin and Auckland, as well as sales offices in Wellington and Christchurch, the Company employs nearly 1,000 in total.
The Cadbury group has also flourished internationally. Cadbury Schweppes plc – the parent company – has manufacturing facilities in 20 countries and its famous brands are bought and enjoyed in more than 110 countries around the world. Cadbury is one of the world’s leading chocolate makers and is number one in England and Australia as well as in New Zealand.
PRODUCTION
Cadbury India’s first manufacturing facility was set up at Thane (Mumbai) in 1966. Today, the factory has grown manifold and manufactures a range of products that include Cadbury Dairy Milk, 5 Star, Nutties, Gems and Bournvita. The factory employs about 750 people and houses the R&D and engineering development facilities of the company.
In a move towards backward integration, Cadbury bought Induri Diary farm in Pune in 1964. Recently, a major investment program resulted in the installation of modern moulding, crumb and chocolate making facilities. Today, the Induri Factory manufactures intermediate products like milk crumb and a range finished chocolates.
In 1989, the company began operations in their newest and most modern plant at malanpur. Equipped with state-of-the-art technology and backed by constant investment, this unit manufactures Eclairs, Gems, Perk and Picnic.
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V I S I O N
The governing objective for Cadbury India is to deliver:
Superior Shareholder Value Cadbury in every pocket
The company believe this requires:
Broadening our consumer appeal and extending their reach to newer markets
Sustained growth of their market share through aggressive product development
Striving for international quality in their products and processes Focusing on cost competitiveness and productivity in their operations and
innovative utilisation of their assets Investing to develop people
Finding a Market Winner
Developing a successful new product which will stand the test of time and gain a permanent place in a company’s product portfolio is not easy. Much quoted figures estimate that it takes in the region of 58 new product ideas to end up with one successful new product and some people put the initial figure as high as 100. The majority of ideas fail early in the process – well before they reach the consumer. A further significant proportion fail to move from the test market into national distribution. With the tremendous investment required for totally new products, it is essential that the whole project is carefully researched. In fact, it may take several years for a new product to grow from concept stage to national distribution. The search for a new product usually beings with an evaluation of the opportunities or gaps in the market.
Successful new brands are targeted as far as possible to avoid taking market share from a company’s existing brands. A new sector must be created in the market or the new product must attack competitors’ brands.
Successful new product development is essentially team work involving research and development, marketing and sales, market research, production, engineering and finance. At Cadbury, in common with most companies, the marketing role is fulfilled by the Product/Brand Manager whose function is to coordinate and mastermind the project through from the initial brief to national launch, until the largest sales tonnage has been achieved. The initial impetus for embarking on a New Product Development project can be:
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Changes in consumer lifestyles Technology developments where new processing techniques have been
devised The need for market extension abroad, particularly into Asia Pacific, and
the demise of trade barriers.
However, products cannot be simply transferred from one market to another without review and possible adaptation to suit differing expectations and cultures.
Whether the product strategy is:
Existing product improvement New product development within the current range of activity Production diversification
Sales sheet summary of Cadbury India Ltd.
Product MRP (Rs.) Quantity Rate (Rs.)
DAIRY MILK F. PACK 140 GMS 40.00 OT 7.5 363.60
DAIRY MILK 160 GM Rs. 50.00 OT 6.0 Rs. 227.50
DAIRY MILK 15 GM Rs. 5.00 OT 16.25 Rs. 273.00
DAIRY MILK 30GM Rs. 10.00 OT 7.46 Rs. 436.80
DAIRY MILK 44 GM Rs. 15.00 OT 16.10 Rs. 546.00
DAIRY MILK 80 GM Rs. 26.00 OT 6.10 Rs. 473.00
BOURNVILLE DARK 40 GM Rs. 15.00 OT 2.10 Rs. 273.00
FRUIT & NUT 44GM Rs. 17.00 OT 18.5 Rs. 309.00
FRUIT & NUT 80 GM Rs. 40.00 OT 12.8 Rs. 273.00
ROAST ALMOND 80 GM Rs. 40.00 OT 8.5 Rs. 363.60
CADBURY’S GOLD 44 GM Rs. 17.00 PC 24.0 Rs. 15.45
CRACKLE 105 GM Rs. 38.00 OT 2.0 Rs. 345.50
CRACKLE 40 GM Rs. 15.00 OT 17.10 Rs. 273.00
5 STAR JUNIOR 15 GM Rs. 5.00 OT 12.25 Rs. 273.00
5 STAR REGULAR 33-7GM Rs. 10.00 OT 11.2 Rs. 273.00
BREAK COCOA 20 GM Rs. 5.00 OT 6.36 Rs. 182.00
RELISH 20GM Rs. 5.00 OT 10.20 Rs. 163.80
PICNIC 26GM Rs. 10.00 OT 12.2 Rs. 214.08
PICNIC 43 GM Rs. 15.00 OT 7.4 Rs. 327.60
PERK S.V.P. 105 GM Rs. 40.00 CS 0.78 Rs. 4363.2
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PERK 35 GM Rs. 13.00 OT 9.12 Rs. 425.52
GEMS 18 GM Rs. 7.00 OT 4.20 Rs. 384.00
GEMS 35 GM Rs. 12.00 OT 17.0 Rs. 327.00
NUT BUTTER SCOTCH 30 GM Rs. 15.00 OT 2.3 682.00
NUTTIES 40 GM Rs. 16.00 OT 13.10 Rs. 291.00
CARAMELS 350 GM Rs. 140.00 OT 1.3 Rs. 637.00
TIFFIN TIN 200 GM Rs. 110.00 OT 2.3 Rs. 500.00
TIFFINS 30 GM Rs. 12.00 OT 4.0 Rs. 218.20
ÉCLAIR 620 GM Rs. 100.00 CS 3.11 Rs. 2068.8
ÉCLAIR 93 gm Rs. 15.00 OT 16.0 Rs. 136.50
MR. POPS 600 GM Rs. 3.00 OT 7.48 Rs. 130.50
GOOGLY ORANGE 500 GM Rs. 69.00 CS 0.3 Rs. 1440.0
GOOGLY ORANGE 1 KG Rs. 135.00 CS 0.1 Rs. 1440.0
GOOLY LEMON 500GM Rs. 69.00 CS 0.3 Rs. 1440.0
ENGLISH TOFFEE 1 KG Rs. 170.00 CS 0.1 Rs. 1728.0
PERK LITE MANGO 28 GM Rs. 10.00 OT 22.18 Rs. 182.00
PERK LITE STRAWBARRY 28 GM Rs. 10.00 CS 19.125 Rs. 182.00
BOURNVITA GLASS JAR 200 GM Rs. 44.00 CS 5.1 Rs. 1614.0
BOURNVITA REFILL 500GM Rs. 85.00 CS 131.0 Rs. 78.00
BOURNVITA GLASS JAR 500 GM Rs. 92.00 CS 6.7 Rs. 1266.0
BOURNVITA PET JAR 500 GM Rs. 92.00 CS 6.7 Rs. 1266.0
BOURNVITA REFILL 500GM Rs. 85.00 PC 12.0 Rs. 78.00
BOURNVITA PET JAR 1 KG Rs. 175.00 PC 2.0 Rs. 160.55
DRINKING CHCOLATE 100 GM Rs. 25.00 OT 2.12 Rs. 465.00
DRINKING CHOCOLATE 200 GM Rs. 45.00 CS 1.3 Rs. 2514.0
DRINKING CHOCOLATE 500 GM Rs. 85.00 CS 0.25 Rs. 2373.0
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NESTLE
The story of chocolate began in the new World with the Mayans, who drank a dark brew
called cacahuaquchtl. Later, the Aztecs consumed chacahoua and used the cocoa bean for
currency. In 1523, they offered cocoa beans to Cortez, who introduced chocolate to the
world, where it swiftly became a favorite food among the rich and noble of Europe.
From the beginning, tuning raw, bitter cocoa beans into what one 17th century writer
called “the only true food of the gods” has been a fine art, a delicate mixture of alchemy
24
and science. Centuries ago it was discovered that by fermenting and roasting the beans,
an almost otherworldly flavor could be created. In 1875, after tears of trying, a 31-year-
old candy maker in Vevey named Daniel Peter figured out how to combine milk and
cocoa powder. The result-milk chocolate. Peter, a friend and neighbor of Henri Nestle,
started a company that would quickly become the world’s leading maker of chocolate.
For three decades the company called Peter, Cailler, Kohler relied on Nestle for milk and
marketing expertise. In 1929, the almost inevitable merge took place as Nestle acquired
Peter, Cailler, and Kohler. Nestle chocolates has increased its sales tremendously in
India. Latest news for nestle chocolates India is, that it will not only be undertaking
selective price hikes, but will also be reducing the weight for its chocolate products in
order to combat rising raw material costs, reportsThe Economic Times .
According to company sources, the weight of Nestlé’s Kit Kat, Milky bar and Munch
chocolate bars will be reduced by around 5-7%, which implies a price hike of around 7%.
Sources expect this measure to pan out by April end, the report adds.
Although Nestlé’s milk product division generates the majority of its revenues,
chocolates generate nearly 15% of sales for the company.Nestlé’s move follows market leader, Cadbury India's Rs 5 (9%) price hike of its flagship
brand, Cadbury Dairy Milk to Rs 60, the report says. Nestlé’s market share in India is
14%.
HISTORICAL HIGHLIGHTS
Incorporated in 1959 as Food specialties, Nest India (NIL) was promoted by Nestle Alimantana, Switzerland, which presently holds 51% equity stake in the company. Manufacturing in India began with the start up of the Moga Factory in 1962. Nestle's first unit at Moga, Punjab is manufacturing:
Milk products Infant milk formulae Weaning cereals Culinary products Beverages
It is the main manufacturing unit of Nestle India Limited. The second factory at Choladi, Tamil Nadu to produce beverages i.e. 100% EOU for instant tea was set up in 1967.
The third plant in Nanjangud, Karnataka was set up in 1989 to produce
Instant Coffee Health Beverages
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The fourth plant at Samalkha, Haryana, was set u in 1993, to produce
Weaning cereals Culinary products Health beverages Milk products
The fifth plant at Ponda, Goa was set up in 1994 to produce:
Wafers Waffles
The sixth plant at Bicholine, Goa commenced construction for manufacture of a range of culinary products and this was expected to be commissioned in the latter part of 1996.
Nestle India, the largest food company in the country is continuously looking at new niches in the market place for its various products.
In milk products Nestle has made a considerable mark. For instance, the company was the first to introduce a Dairy Whitener with its product 'Everyday'. And till today that product is a brand leader despite the presence of a host of other brands in the field. IN the case of Milkmaid condensed milk, Nestle relaunched the product as desert maker and has seen the sales graph climbing since.
In baby foods, Nestle has made its strong hold with Lactogen and Cerelac. Nestle is also popular in pure ghee segment. Its Everyday pure ghee has gained a quite satisfactory market share, Nestle has also entered into fitness food products. Nestle today is a household name. Nestle extended the product line in coffee by bringing in Dolco, and then Sunrise.
In 1990, NIL entered the chocolate business introducing Nestle Premium chocolate. Nestle's products are sold under brand names such as a Milkmaid, Everyday, Cerelac, Nescafe, Maggi, Lactogen, Eclairs etc. It launched the world famous Kitkat chocolates in 1995. During the year 1996 Milo the world's largest selling chocolate energy food drink was launched.
According to the chart shown, we can easily known as to which product were launched in which year:
Launch year Product's Name
1962 Milkmaid
1964 Nescafe
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1968 Lactogen
1972 Ricory
1974 Maggi, Cuber, Cerelac
1978 Nestum
1982 Nespray, Lactogen
1983 Sunrise, Maggi Noodles (Chicken Masala)
1985 Maggi Sauces - Tomato & Hot & Sweet
1986 Everyday Dairy Whitener
1987 Cerelac - Wheat Apple, Wheat Orange, Maggi Sauces, Chilli Garlc, Masala Chilli
1989 Everyday Ghee, Maggi Soups - Tomato, Chicken, Mushroom, Taster's Choice-Leaf Tea. Sunrise Extra (originally Ricory), Nestogen 2, Sunrise Premium (Originally Sunrise), Cerelac - Wheat vegetable
1990 Nestle Chocolate - Premium Milk, Milky bar and Crunch
1991 Nestle Eclairs, Bar-One, Maggi Soups – Mixed Vegetable, Chicken Noodles, Nestogen I
1992 Everyday Gold (originally Nespray)
1993 Maggi Super Seasoning (Originally Maggi Cubes) - Chicken, Vegetarian Lemon Malasa, Nestle Bonus, Polo, Bar-one-Roasted Peanut, Taster's Choice - Dust Tea, Contamina - Snack Pressing
1994 Cerelac - Wheat Soya, Milkmaid Desert Mixes - Custard Powder, Gulab Jamun, Shahi Rabri, Kesar Kulfi, Maggi Tonite's Special - Butter Chicken Gravy Sauce, Karahi Paneer Gragvy Sauce, Pizza Sauce Topping, Nescafe Pre-Mix, Everyday Pre-mix
1995 Nestle Bonus - Chocolate, Nestle Kitkat, Toffo - Coffee, Elacichi, Milk, Polo-Paan
1996 Nestle Milo, Milkmaid Dessert Mixes – Kalakand, Maggi Pickles - Lime, Lime Sweet, Mango, Mango Punjabi, Mixed, Maggi Dosa Mixes - Masala Plain, Sambhar, Maggi Soups - Chicken Sweet Corn, Hot & Sour and Rasam, Polo - Spearmint, Cerelac - Rice, Taser's Choice - Tea Bags.
1997 Mithai Magic, Splash Candy, Butter Scotch Candy, Toffee-Elaichoo, Koffees, Polo-Fruit Rings, Extra Strong, Maggi Rich Soups, Nestea, leaf/Dust Tea, Nescafe 3-in-1, Teamate Creamer, Maggi Pickles, Variants, Maggi Macroni Snack, Cerelac - Wheat Banaa, Wheat Honey
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1998 Maggi - Tamarina Sauce, Nestle Allan's Soother's, Sunrise Eclairs
2002 Nestle - Dahi & Imli Sauce
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AMUL
AMUL CHOCOLATE is made from Sugar, Cocoa Butter, Milk Solids, Chocolate mass
Composition Milk Fat 2% Sugar 55% Total fat 32.33% (Milk fat + Cocoa Fat) Cocoa
Solids 7.5% Milk Solids 20% Product Specifications: Meets all requirements under the
PFA for boiled sugar confectionary. “A gift foe someone you love”. Amul Chocolate has
chosen the phrase “A gift of someone for love” to market their chocolate products.
Today, GCMMF’s Amul brand of milk products receives business queries from dozens of countries, ranging fron the U.S. and the Netherlands to Singapore and New Zealand-thanks to an innovative marketing campaign on the World Wide Web. PRODUCT RANGE
AMUL – The Taste of India, a brand so distinctively Indian, has been a part of our lives for nearly five decades now and still is able to touch a chord in our hearts. As a brand Amul has grown from being merely a differentiating factor to protect the interests of producers and consumers, and has now become a critical success factor in the very existence and growth of a movement that started way back in the pre-independence India.
The Amul EraAmul came into being as a consequence of a revolution and it has continued to be revolutionary in every stage of its life. It initially started a as means to balance the fluctuating milk supply and grew at a phenomenal rate as a liquid milk supplier. The Kaira Union began pasteurizing milk for the Bombay Milk Scheme in 1948. However by the 1950s it was amply clear
29
that the future lay in manufactured dairy products. Amul responded by embarking on a wide range of dairy processing activities, involving newTechnologies, and by expanding its processing facilities. It challenged the established Polson brand in butter manufacturing, and then moved on to sweetened condensed milk in direct confrontation with the international giant Nestle. It also locked horns with Glaxo over the production of baby food in India. On all of these occasions Amul not only displayed feats of resilience but also in fact came out much stronger than ever before.Amul realized it as early as late 1960s that the only way it could increase the share of the market was by maintaining the reasonable prices of its products, but widening the range. During 1966-1970, Amul added sweet buttermilk powder, a second brand of baby food (Amulspray) and a high protein weaning food (Balamul). In 1974 the Amul Milk Chocolate was released
commercially and was followed by several varieties of chocolates and chocolate confectionaries. Also Nutramul, a malted cocoa beverage was launched in 1976.Cheese powder was released commercially in the early70s.
As district unions multiplied, Kaira Cooperative recognized the benefits of a marketing federation and thus the Gujarat Cooperative Milk Marketing Federation (GCMMF) was established in 1973. GCMMF commenced marketing on April 1, 1974under the single brand name of Amul. In 1978-79 it registered a turnover of Rs. 100 crore, which grew to Rs. 539.67 crore in 1987-89. In 2002-03 the turnover stood at Rs. 2745.70 crore. At present GCMMF have 2.28 million producer members with a total milk collection in 2002-03 being 1.86 billion litres. The success rate has been to the extent that GCMMF has now become India's largest food products marketing organization. GCMMF test marketed Amul Cheese spread in 1983 following it with a new softer cheese spread. In 1982, it introduced Amul Shrikhand in Bombay, and brought out new flavors between 1986 and 1989. Amul UHT milk in tetra packs, with a shelf life of days, was released in 1983 and by 1988-89 UHT milk with shelf life of 60 days had become available. Between 1987 and 1989, Amul Choco Shake, Amul Elaichi Shake, and Amul Lassi were successfully marketed in tetra bricks.
In the 1990s, Amul continued on an expansion path and several new product ranges were added to its portfolio. A much deeper Amul Cheese range with Amul Malai Paneer and Amul Pizza Cheese, extended Amul Mithaee range with Gulabjamuns and Kulfi mix, a wider UHT milk range
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Amul Taaza milk and Amul Fresh Cream, fresh milk range with brands like Amul Gold, Amul Smart and Amul Shakti, a new Curd range with Amul Masti Dahi, and a new Milk drink – Amul Shakti Flavored Milk. Amul also started aggressive marketing of its wide array of Ice creams posing stiff competition to established players like HLL’s Kwality Walls and Mother Dairy. Recently it also introduced ready to serve soups under the brand name of Masti Today Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made Amul a leading food brand in India. Amul has evolved from its traditional image and now is a symbol of many things. Of high-quality products sold at reasonable prices. Of the genesis of a vast co-operative network. Of the triumph of indigenous
technology. Of the marketing savvy of a farmers' organization. And have a proven model for dairy development.
LIST OF PRODUCTS MARKETED:
BREAD SPREADS:
Amul Butter Amul Lite Low Fat Bread spread Amul Cooking Butter
CHEESE RANGE:
Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread Amul Pizza (Mozzarella) Cheese Amul Shredded Pizza Cheese Amul Emmental Cheese Amul Gouda Cheese Amul Malai Paneer (cottage cheese) Frozen and Tinned Utterly Delicious Pizza
MITHAEE RANGE (ETHNIC SWEETS):
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Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) Amul Amrakhand Amul Mithaee Gulabjamuns Amul Mithaee Gulabjamun Mix Amul Mithaee Kulfi Mix
UHT MILK RANGE:
1) Amul Taaza 3% fat Milk 2) Amul Gold 4.5% fat Milk 3) Amul Slim-n-Trim 0% fat milk
4) Amul Chocolate Milk 5) Amul Fresh Cream 6) Amul Snowcap Softy Mix 7) Amul Taaza Double Toned Milk
PURE GHEE:
Amul Pure Ghee Sagar Pure Ghee Amul Cow Ghee
INFANT MILK RANGE:
Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 ( 6 months above) Amulspray Infant Milk Food
MILK POWDERS:
Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener
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SWEETENED CONDENSED MILK:
Amul Mithaimate Sweetened Condensed Milk
FRESH MILK:
Amul Taaza Toned Milk 3% fat Amul Gold Full Cream Milk 6% fat Amul Shakti Standardised Milk 3% fat Amul Smart Double Toned Milk 1.5% fat
CURD PRODUCTS:
Amul Masti Dahi (fresh curd) Amul Butter Milk Amul Lassee
AMUL ICECREAMS:
o Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti)
o Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival, Badshahi Badam Kulfi, Shista Pista Kulfi)
o Utsav Range (Anjir, Roasted Almond) o Simply Delicious Range (Vanilla, Strawberry, Pineapple, Rose,
Chocolate) o Nature's Treat (Alphanso Mango, Fresh Litchi, Anjir, Fresh
Strawberry, Black Currant) o Sundae Range (Mango, Black Currant, Chocolate, Strawberry) o Millennium Icecream (Cheese with Almonds, Dates with Honey) o Milk Bars (Chocobar, Mango Dolly, Raspberry Dolly, Shahi Badam
Kulfi, Shahi Pista Kulfi, Mawa Malai Kulfi, Green Pista Kulfi)
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AMUL TOPICALS FROM 2003-2004 Cool Candies (Orange, Mango) Cassatta Tricone Cones (Butterscotch, Chocolate) Megabite Almond Cone Frostik - 3 layer chocolate Bar Fundoo Range - exclusively for kids SlimScoop Fat Free Frozen Dessert (Vanilla, Banana, Mango,
Pineapple) Health : Isabcool
CHOCOLATE & CONFECTIONERY:
Amul Milk Chocolate Amul Fruit & Nut Chocolate Amul Eclairs Amul Fundoo Amul Bindaaz Amul Almondbar
BROWN BEVERAGE:
o Nutramul Malted Milk Food
MILK DRINK:
Amul Shakti Flavored Milk
Ready to Serve Soups:
Masti Tomato Soup Masti Hot & Sour Soup Masti chanch
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35
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The round-eyed, Chubby-Cheeked Amul Moppet has been a wildly popular advertising
fixture, with its punchy one-liners amusing Indian viewers from bus stands, lamp kisos
and billboards for over thirty years. The ultimate compliment to the butter came when a
British company recently launched a butter and called it Utterlt Butterly, a fitting
recognition of the “Thorough bred, utterly Butterly Delicious Amul.” Every week,
Amul’s topical ads for its butter products are posted on its Web site, along with recipes
fore Indian dishes featuring Amul products. Archives of hundreds of topicals dating back
to 1979 are available on the site. The topicals have also been carried every day on the
Indian World home page.amul chocolate’s market share in India is 5%.
PRODUCT PROFILE
37
Research for availability and acceptability of Amul Chocolate and their different variants including New Launched
CHOCOLATES: MAJOR TYPES & BRANDS
Types BrandMolded chocolates Dairy Milk, Truffle, Amul Milk
Chocolate, Nestle Premium, Nestle Milky Bar, Nestle Classic
Count lines 5 Star, Perk, Kit Kat, Picnic, Munch
Panned products Gems (Cadbury), Nutties, Marbles (Nestle)
AMUL CHOCOLATE“GIFT FOR SOMEONE YOU LOVE”
AMUL CHOCOLATE is made from Sugar, Cocoa Butter, Milk Solids, and Chocolate mass
Composition:
Milk Fat 2% Sugar 55% Total Fat 32.33% (Milk Fat + Cocoa Fat) Cocoa Solids 7.5% Milk Solids 20%
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AMUL MILK CHOCOLATEAMUL FRUIT AND NUT CHOCOLATE
Rich Milk Chocolates from the House of Amul.Upholding Decades of Trust and Satisfaction
AMUL FUNDOOChoti bite. Badi Masti.
Milk Chocolate Enriched with Glucose for Extra Energy.
AMUL BINDAAZ BINDAAZ KHAO HUNGAMA MACHAO
A Rare Blend of Dark Chocolate and Milk Chocolate laced with Crispy Chocolate Crumbs.
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ALMONDBARBITE BITE MEIN DUM
Rich and Chewy Almond Nougats Coated with Rich Milk Chocolate.
Product Specification:Meets all requirements under the PFA for boiled sugar confectionary.
DIFFERENT VARIANTS OF AMUL CHOCOLTES AND THEIR RELATIVE PRICING
SL.NO
BRAND/PACK MRP TRADEPRICE
DISCOUNTED PRICE
NETMARGIN
1. Amul Milk Chocolate 35g Rs.10 Rs. 9.13 Rs. 8.70 15 %
2. Amul Milk chocolate 18g Rs. 5 Rs. 4.56 Rs. 4.34 15.1 %
3. Amul F&N chocolate 30g Rs. 15 Rs. 13.87 Rs. 13.21 13.5 %
4. Amul Fundoo 30g Rs. 10 Rs. 9.00 Rs. 8.57 16.7%
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5. Amul Fundoo 15g Rs. 5 Rs. 4.50 Rs. 4.28 16.7 %
6.Amul Bindaaz chocolate 30g
Rs. 10 Rs. 9.00 Rs. 8.57 16.7 %
7.Amul Almond Bar 35g Rs. 10 Rs.9.00 Rs. 8.57 16.7 %
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42
CONSUMER BEHAVIOR
43
INTRODUCTION
The term consumer behavior refers to the behavior that consumers display in
searching for, purchasing, using, evaluating and disposing of products and services that
they expect will satisfy their needs. The study of consumer behavior is the study of how
individuals make decisions to spend their available re- source (time, money, effort) on
consumption related items. It includes the study of what they buy, why they buy it, when
they buy it, where they buy it, how often they buy it and how often they use it.
Information about the pattern of consumption in various segments of society and
dynamics of consumer behavior are central to the understanding for developing new
concepts in marketing. The essence of modern marketing concept is that all elements of
business should be geared towards identifying and satisfying the needs of the consumers.
Decision Making Process
The consumer’s decision to purchase or reject a product is a moments of final
truth for marketer. It signifies whether the marketing strategy has been wise, insightful,
and effective, or whether it was poorly planned and missed the mark. Thus, marketers are
particularly interested in consumer’s decision-making process. We would be discussing a
simple model of consumer decision making that emotional consumer. The modal, has
three major components:
1) Inputs
2) Process
3) Output
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Product Price Place Promotion
Firm’s Marketing Efforts
Psychological Factors
Perception Motivation Attitude Learning Personality
Family Reference Group Other non-commercial
influence Social class Culture and sub-
culture influences
Socio culture Environment
Purchase Trial Repurchase
Post purchase evaluation
Need recognition Information search Valuation
alternatives
Input
Process
Output
CONSUMER DECISION MAKING PROCESSExternal influences
Consumer Decision Making
Post Purchase Behavior
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Experience
INPUTS
The input component draws on external influences that serve as sources of
information about a particular product and influence a consumer’s product-related values
and behavior. Chief among these input factors are the marketing – mix activities of
organizations that attempt to communicate the benefits of their products and services to
their potential customer, and the no marketing socio-cultural influences, which, when
internalized, affects the consumer’s purchase decision.
PROCESS
The process component of the modal is concerned with how consumers make
decisions. The psychological field represents. The internal influences (motivation,
perception, learning, personality, and attitudes) that effect the consumer’s decision
making processes.
Prepurchase Activity: After the problem is identified, the buyer indulges in
prepurchase activity. It is under stood that need is a father of a deed.
There generally remains a time lag when a person thinks to buy and the actual
incidence of buying. During this time, the person is energized and is likely to be
influenced by various factors. Need arousal drives the consumer to collect information
about the required product. He first indulges in internal search, scans his psychological
field so as to recollect of retrieve any information or past experience related to particular
need. His psychological field comprises of his past learning. Perception, personality and
past experience. If he is not satisfied he then goes in for external search and looks for
various sources of information. The degree of perceived risk can also influence this stage
of the decision process. In high – risk situation they are likely to engage in complex
information search and evaluation tactics.
Of key interest to marketer are the various sources of information that the
consumer will return to and the relative influence that they will have on his buying
behavior.
Evaluation of Alternatives: when evaluating potential alternatives consumers tend
to use two types of information:
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1. A “list” of brands from which they plan to make their selection (the evoked set),
and
2. The criteria they will use to evaluate each brand.
The criteria consumers use to evaluate the brands that constitute their evoked sets
usually are expressed in terms of important product attributes. Consumers use
certain procedures or rules to facilitate a choice among multi – attribute objects.
Consumers’ decision rules have been broadly classified into two major categories
compensatory and non compensatory decision rules.
An understanding of which decision rules consumer apply in selecting a
particular service or product is useful to marketers concerned with formulating a
promotional programme.
Output
The output portion of consumer decision – marking model concerns two closely
associated kinds of post decision activity. Purchase behavior and post purchase
evaluation. The objective of both activities is to increase the consumer’s satisfaction with
his/her purchase.
Purchase Behavior: Consumer make two types of purchase and repeat purchase. If a
consumer purchase a product (or brand) for the first time, and buys a smaller quantity
than usual, this purchase would be considered a trail. Thus, a trail is the exploratory phase
of purchase behavior in which consumers attempt to evaluate a product through direct
use.
If the new brand is established product category (cola, chewing gum, candies) is
found by trail to be more satisfactory or better than other brands, consumers are likely to
repeat the purchase, Repeat purchase behavior is closely related to the concept of brand
loyalty, which firms try to encourage because it contributes to greater stability in the
marketplace.
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OBJECTIVE OF THE STUDY
1. To study the brand preferences of consumers from the three brands of
chocolates i.e. Amul, Cadbury, Nestle available in the market.
2. To find the extent of brand loyalty of consumers that exists among
different chocolate brands.
3. To study the influence of various aspects on buying behavior.
4. To study the usage & brand awareness of chocolates product in among
the residents of Bhiwani.
5. To checkout the satisfaction level of the consumers for chocolate bars
they are using.
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Research Methodology
RESEARCH METHODOLOGY
49
Research methodology in a way is a written game plan for conducting research. Research
methodology has many dimensions. It includes not only the research methods but also
considers the logic behind the methods used in the context of the study and complains
why only a particular method of technique has been used. It also helps to understand the
assumption underlying various techniques and the criteria by which they can decide that
certain technique will be applicable to certain problems and other will not. Therefore in
order to solve a research problem, it is necessary to design a research methodology for
the problem as the some may differ from problem to problem.
This chapter focuses on the various techniques, methods and assumptions used in
this study. It sheds light on the research problem, objectives of the study, and also its
limitations. The later part of the chapter explains the manner, in which the data is
collected, classified, tabulated, analyzed and interrupted so as to each to conclusive
results.
The study is of diagnostic nature and thus the overall research design is going to
be rigid. The design should provide enough provision for protection against bias-ness and
must maximize reliability.
A)PROBLEM STATEMENT:-
Research work is management parlance is extremely important for a given close
view of the relatives of the real life business issues. For any management student who is
striving to perform outstandingly. It is of paramount importance that apart from
theoretical knowledge he must also gain some practical knowledge. Survey report deals
specially with providing an opportunity to management students to have some exposure
in real business world. My study topic deals with Consumer Behavior and different
factors that influence consumer to purchase a particular brand of chocolates.
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As chocolate is regarded as one of the biggest Fast Moving Consumer Good
(FMCG), there are many factors in mind of consumer which induce them to purchase a
particular brand of chocolate. Some of these factors are Price, Taste, Packaging, Brand
name. Ever changing behavior of consumer, dominance of different brands in the market
compelled me to undertake a research work in this segment. The prime objective of my
study is to analyze the effect of various factors on buying behavior of consumers.
B) RESEARCH DESIGN:-
To analysis the buying behaviors of the residents of Bhiwani Sample Survey Methods
has been employed through other methods are also important. This method is given prime
significance in modern research because of its extensive use to study the relationship of
different factors, attitudes and practices of society and to explore the problems that
cannot be treated by experimental methods.
To collect data, a number of techniques are employed under the sample survey
method i.e. questionnaire. The increasing use of questionnaire is probably due to
increased emphasis by social scientists on quantitative measurement to uniformly
accumulated data.
a) Area of study
The area of the study is different Markets of Bhiwani in order to collect the Primary data
from the respondents.
b) Study area
Study area is Bhiwani.
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c) Target Segment Consumers of Milk chocolates bars of age group 18-25
C) SELECTION OF SAMPLE :-
It becomes impossible to contact each and every individual of the population due to
limitations of essential resources like time and money. Therefore, the study is preferably
allowed down to a representation sample to make the study more manageable.
Keeping in the view the objectives and resource limitation of the study, 100
respondents were considered.
Respondents -100(Youths of age group 18-25)
The selected sample is representative of the population and is accurate and
practicable.
D) SAMPLING PLAN:-
The following factors will be taken into consideration within the scope of sampling plan:
I Sampling Unit : It defines the target population that will be
sampled i.e. it answers who is to be surveyed. In this study, the sampling
unit is youth with in the age group of 18-25 years.
II Sampling Size: - It indicates the numbers of people to be surveyed. Though
large samples give more reliable results than small samples but due to constraints of time
and money, the sample size was restricted to 100 respondents.
Probability sampling can be of following types:
Simple random sampling
Stratified random sampling
Cluster (area) sample
In this case, stratified random sampling was done since the respondents will classified
into well defined classes or strata that were distinct from each other.
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E) COLLECTION OF DATA:
After the research problem has been defined and the research design has been
chalked out, the task of data collection begins. The data can be collected mainly through
primary sources, but it was supplement with secondary data.
I Primary data collection:
Primary data is the data which is collected through observation or direct communication
with the respondent in one form or another. These are several methods for primary data
collection like Observation Method, Interview Method, through schedules, through
questionnaires and so on.
II Secondary data collection methods:
Secondary data is collected through
Magazines
Journals
Portals
Formation of Questionnaire
Quite often the questionnaire is considered as the heart of a survey operation.
Hence it should be carefully constructed. It is an investment that is widely used to collect
various types of data and consists of long lists of questions designed to collect any
information. It has personally been found that people are more frank in giving replies to a
questionnaire than to an interview schedule. Though being less expensive, it has certain
limitations like incomplete entries and erroneous responses. But the educational
qualification of the respondents is an additional factor which renders this technique the
most relied upon.
Formation of a good questionnaire involves intensive thinking and deliberation of
the problem with predetermined objective and aims properly placed in the questionnaires.
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The questionnaire framed for the purpose of the study consists of a limited
number of questions placed in logical order. So, that the objective of the question is clear
to the respondents. All the questions are centered on the problem keeping in the mind.
The questions were both open and close ended as well as multiple choices.
Analysis of Data:
Data, after collection, has to be analyzed in accordance will the outline laid for the
time of developing the research plan. The term analysis refers to the computation of
certain measures along with searching for patterns of relationship that exist among data
groups. Data presented in raw state appear unrecognized and complex. Statistical
processors are used this complex data into some significant understandable form.
LIMITATIONS OF THE STUDY
The project was successfully completed with certain inherent limitations. These
limitations were:
1) The time of research was short due to which many fact has been left
untouched
2) The Area undertaken in research in Bhiwani only. But to do a completer
research a wide area is required, so the area is also a constraint of the study.
3) Sample for the study taken is of only 100 consumers. This can also act as a
constraint in the study.
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4) While collecting data some of the consumers are not willing to fill the
questionnaire, so they might not fill their true behavior. This can also be a
constraint of the study.
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Data Analysis&
Interpretation
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ANALYSIS AND INTERPRETATION
Q1. Which companies’ chocolate do you prefer to purchase?
Brand Name Percentage
Cadbury 40
Nestle 35
Amul 25
57
40%
35%
25%Cadbury
Nestle
Amul
As per shown in the Pie chart, the maximum market share is hold by Cadbury. And least
share is hold by Amul followed by Nestle. And this result is obtained from the response
of customers towards Questionnaire filled by them for the consumption of milk chocolate
bars.
Q2. What is your pattern of consumption?
Pattern of consumption Percentage of consumption
More than one per day 15
Daily one 25
3-4 chocolates per week 45
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Weekly 10
Rarely 5
As shown in Pie
chart, most of the consumers consume milk chocolate bars as
3-4 per week, which represent 45% of the total number of surveyed consumers. And
second most percentage of consumers consumes milk chocolate bars are of daily one.
Q3. Do you purchase the same chocolate every time?
Answer Percentage
Yes 68
No 32
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Percentage of consumption
15%
25%45%
10% 5%
More than oneper dayDaily one
3-4 chocolatesper weekWeekely
Rarely
Percentage
68%
32%
Yes
No
As pie chart shows, 68% of the consumer purchase the same chocolate every time, it
means that mostly consumers are brand loyal.32% of consumers don’t purchase the same
chocolate every time.
Q4. If no, then while switch over to another brand of chocolate then what factor you consider (tick any one)?
Factors Response PercentagePrice 6 18
Quality 12 38Brand Name 3 9.5
Advt. and Ref. Group 3 9.5Taste 8 25
60
Percentage
18%
38%10%9%
25%
Price
Quality
Brand Name
Advt. and Ref.Group
Taste
As shown by the pie chart, 38% of consumers consider “Quality” as most important
factor while switching over to any other brand of milk chocolate bars, and the second
most preferred factor is “Taste”
Q5. Which factor you consider the most while purchasing the chocolate? Please tick
any one.
Consumer's consideration Percentage
Price 16
Taste 48
Brand 18
Packaging 9
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Availability 9
Percentage
16%
48%
18%
9% 9%
Price
Taste
Brand
Packaging
Other
48% of the consumer of milk chocolate bars said that the most considering factor by them
on the basis of which they purchase a particular brand of milk chocolate bars is Taste of
that milk chocolate bars. And the least interested factor is Packaging and Availability.
Q6. Which mode of advertisement influence you most to buy a particular Chocolate? Please tick any one.
Media Percentage
Newspaper 22
Magazine 14
Radio 4
Television 54
Others(hoardings,banner,pamplets etc) 6
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Percentage
22%
14%4%
54%
6%
Newspaper
Magazine
Radio
Television
Others(hoardings,banner,pamplets etc)
The buying behavior of consumers is also affected by the different type of
advertisements. As shown in the pie chart, the most influencing media is electronic media
i.e. TV, and the second most influencing factor is newspaper.
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Q7. Which reference group influence you most to buy a particular chocolate? Please
tick any one.
Reference Groups Percentage
Friends 55
Family 3
Retailers 1
Celebrity 39
Others 2
Percentage
55
31
39
2 Friends
Family
Retailers
Celebrity
Others
As shown in the pie chart, from reference group friends are the most influencing factor
which influence consumer to purchase a particular brand of milk chocolate. And this
statement is supported by 55% of consumers of milk chocolate bars. And the second most
influencing factor which influence customer to purchase a particular brand of milk
chocolate bar are celebrities , and this statement is supported by 39% of consumers.
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Q8. Whether you check or consider manufacturing and expiry date while buying
any chocolate?
ANSWER Percentage
YES 55
NO 45
Percentage
55%
45% Yes
No
Pie chart says that 55% of the consumer check or consider manufacturing and expiring
date while buying any chocolate. 45% of consumers don’t go for that. This should be a
matter of concern
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Q9. How much you are satisfied with the present brand of chocolate which you often
purchase?
Satisfaction Level Percentage
Highly satisfied 27
Satisfied 32
Undecided 21
Dissatisfied 12
Highly dissatisfied 8
Percentage
27%
32%
21%
12%8%
Highlysatisfied
Satisfied
Undecided
Dissatisfied
Highlydissatisfied
About 27%of consumers are highly satisfied with the present brands of Milk chocolate
bars in Bhiwani and 32% are satisfied. if we consider brand wise then milk chocolate bar
of Cadbury is the most preferred brand in Bhiwani which holds 40% of the market
share and after that Nestle has second position with a holding of 35% of the market
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share and the least preferred brand from the take brand to make report is Amul with a
holding of 25% of market share.
Findings
& Conclusion
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FINDINGS & CONCLUSION
The findings of the study of consumer buying behavior in chocolates states among all the
three to brands i.e. Cadbury, Nestle and Amul. The brand at first place is Cadbury, the
Nestle (2nd) and last is Amul. Among all these three Cadbury is having the largest market
share i.e. 40, Nestle 35 and Amul 25. Among all these Brands Cadbury is the only
company offering largest number of brands in chocolates i.e. 6 (only for milk chocolate
bars). As compared to Cadbury Nestle Company is having 2 brands and Amul is with 4
brands of chocolates.
For 48% of the consumers the most important factor which is considered while
purchasing any milk chocolate bars is Taste of that chocolate. They give preference
to other factors also, but most important thing is taste.
The buying behavior of consumers is also affected by the different type of
advertisements. And the most influencing media is electronic media i.e. TV, and
from reference group friends are at most influencing position.
Quality is the most important factor which consumers consider while switching
over to any other brand of milk chocolate bars.
Consumers of Bhiwani are more attracted towards the foreign brands like Cadbury
and Nestle and demand that more number of foreign milk chocolate bars should be
available in the market, like some milk chocolate bars brands of Swiss and French
chocolates. As this thing shows that consumer of Bhiwani are more satisfied with
the foreign brands and hence demand more of it. But brands like Amul are not able
to get proper place in the market in spite that good advertisement is being done by
Amul also.
68% of the consumers are brand loyal.
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The buying behavior of consumer for different brands of milk chocolate bars is
affected by various factors like price, taste, packaging, brand etc.55% of the
consumer check or consider manufacturing and expiring date while buying any
chocolate. 45% of consumers don’t go for that. This should be a matter of concern.
SUGGESTIONS
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SUGGESTIONS
A detail study of the “Consumer’s Buying Behavior of Age Group 18-25 For
Milk Chocolates Bars” was done. Some important suggestions are as follows:
1. The Indian company AMUL has to review its process so as to gain brand loyalty of the consumers.
2. The chocolates whose expiry dates goes off should be replaced at once and fresh
stock should be offered.
3. The chocolate companies should think on the matter that why the consumers
switch over to the other brands.
4. The chocolate companies should put more & more emphasis on the taste and
quality of the chocolate so as to gain brand loyalty.
5. As factors other than TV and Newspaper are considered less so companies should
use the print and electronic media for advertisement in large extent.
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Annexure
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QuestionnaireOn
“Buying behavior of consumer for Milk chocolate bar of age group 18-25
Q1. Which companies’ chocolate do you prefer to purchase?
Cadbury Amul Nestle
Q2. What is your pattern of consumption?
More than one per day Daily One
3-4 Chocolate per week weekly
Rarely
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Name of the consumer ____________________________________
Age ____________________________________
Sex ____________________________________
Income ________________________________
Q3. Do you purchase same chocolate every time?
Yes No
Q4. If no, then while switch over to another brand of chocolate then what factor you consider? Please tick any one.
Price Quality Brand
Name
Advertisement and Reference group Taste Q5. Which factor you consider the most while purchasing the chocolate (tick any one)?
Price Taste
Brand Packaging
Availability
Q6.Rank the following brands of chocolates on the above mentioned attributes.(Rank them on a scale of 1-7(1-rated best, 7-rated worst)
Chocolate Brands
Attributes Perk Kit Kat
Cadbury’s Dairy Milk
5 Star Amul Foreign
Brand
(Pls.Spec.)
Any Other
Brand
(Pls.Spec.)
Taste
Quality
Packaging
Price
Flavour
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Add-ons (Wafers,etc.)
Brand Image
Q7. Which mode of advertisement influence you most to buy a particular Chocolate? Please tick any one. Magazine Newspaper
Radio Television
Other
Q8. Which reference group influence you most to buy a particular chocolate? Please tick any one.
Friends Family
Retailer Celebrity Other Q9. Whether you check or consider manufacturing and expiry date while buying any chocolate?
Yes No
Q10. How much you are satisfied with the present brand of chocolate which you often purchase?
Highly Satisfied Satisfy
Undecided Dissatisfied
Highly Dissatisfied
Q11. What is your suggestion for the improvement of your preferred chocolate Brand?
_______________________________________________________________
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BIBLOGRAPHY
BOOKS
Marketing Research, Donald T.S Research Methodology, C.R kothari Consumer Behaviour, Della A.J
MAGAZINES & JOUNALS
Advertising Express, September 2006,Traditional Mass Media, By K.Suresh
Business World, November 2006 Business Today, Trends
WEBSITES
www.amul.com
www.nestle.com
www.cadburyindia.com
www.consumerpsychology.com
www.altavist.com
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