“CONSUMER BEHAVIOUR & TODAY’S TREND’S REGARDING CHOCOLATE INDUSTRIES”

A PROJECT REPORT SUBMITTED TOSIKKIM MANIPAL UNIVERSITY

SIKKIM

IN PARTIAL FULFILLMENT OF THE REQIREMENTFOR THE AWARD OF DEGREE OF

MASTEROF BUSINESS ADMINISTRATION

SIKKIM MANIPAL UNIVERSITY, SIKKIM

LAKHWINDER GIRIROLL NO

ACKNOWLEDGEMENT

Last but not least I am also thankful to all those people with whom I

interacted during my project, all the respondents I am very grateful to MR

AJAY SINGH, (sales manager) CADBURY COMPANY Ltd BADDI under

whose guidance I did my project as a part of my MBA program. I am also

like to express my gratitude toward Mr. VIRENDER CHAUDHARY(asst.

sales manager of (CADBURY COMPANY Ltd BADDI) for his help and

guidance which I need during the project.

I am indebted to faculty of my college Dr Inderjeet, (HOD) of my college .I

would also like to thank all the faculty members of the branch who helped

me by providing assistance in making me to understand the basics of

marketing trend’s in chocolate industries.

from whom I collected the data for my study, without them it would

not have been possible for me to complete my training successfully. Mere

acknowledgement may not redeem the debt I owe to my parents and

friends for their direct/indirect support during the entire course of this

project.

LAKHVINDER GIRI

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INDEX

3

S.No. PARTICULARS

1. INTRODUCTION

(a) History of Cocoa Industry. (b) Chocolate market in India (c) SWOT Analysis of Chocolate Industry. (d) Market Share of Companies.

2. MAJOR MARKET PLAYERS IN INDIA. (a) Cadbury India Ltd. (b) Nestle India Ltd. (c) Amul India Ltd. (d) Expenditure on Advertisements.

3. REVIEW OF LITERATURE 4. RESEARCH METHODOLOGY. 5. MARKET SURVEY.

(a) Questionnaire analysis for consumers. (b) Questionnaire analysis for Retailers. (c) DATA ANALYSIS.

6. LIMITATIONS 7. FINDINGS AND SUGGESTIONS 8. CONCLUSION 9. BIBLIOGRAPHY 10. ANNEXURES

INTRODUCTION

“CHOCOLATES”

4

Chocolate and Cocoa :   A Rich History

5

Chocolate comprises a number of raw and processed foods that originate from the seed of the

tropical cacao tree. It is a common ingredient in many kinds of confections such as chocolate

bars, candy, ice cream, cookies, cakes, pies, chocolate mousse, and other desserts. It is one of the

most popular (or at least recognizable) flavours in the world.

Chocolate was created by the Mesoamerican civilization, from cacao beans, and cultivated by

pre-Columbian civilizations such as the Maya and Aztec, who used it as a basic component in a

variety of sauces and beverages. The cocoa beans were ground and mixed with water to produce

a variety of beverages, both sweet and bitter, which were reserved for only the highest noblemen

and clerics of the Mesoamerican world. Chocolate is made from the fermented, roasted, and

ground beans taken from the pod of the tropical cacao tree, Theobroma cacao, which was native

to Central America and Mexico, but is now cultivated throughout the tropics. The beans have an

intensely flavoured bitter taste. The resulting products are known as "chocolate" or, in some parts

of the world, cocoa.

Today, chocolate commonly refers to bars made from the combination of cocoa solids, fat, sugar

and other ingredients. Chocolate is often produced as small molded forms in the shape of

squares, animals, people, or inanimate objects to celebrate festivals worldwide. For example,

there are moulds of rabbits or eggs for Easter, coins for Hanukkah, Saint Nicholas (Santa Claus)

for Christmas, and hearts for Valentine's Day.

Chocolate can also be made into drinks (called cocoa and hot chocolate), as originated by the

Aztecs and the Mayas. In England, Samuel Pepys records in his diaries at least two entries

relating to "jocolatte" as early as the 1660s. Later, in 1689 Hans Sloane developed a milk

chocolate drink in Jamaica which was initially used by apothecaries, but later sold by the

Cadbury brothers.

Chocolate dates back to ancient America when the Mayans, and later the Aztecs, ground the

beans of the Theobroma cacao tree into a bitter beverage, which they prized for its mystical and

medicinal attributes. Chocolate’s name comes from the Aztec word, xocalatl, which means bitter

water. Cortés, the conqueror of the Aztecs, brought the beans to Europe in the 1500s, where they

were used to treat anemia, fever, gout, hemorrhoids, poor digestion, depression, and heart

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ailments. Today, chocolate is usually a highly processed blend of chocolate liquor, cocoa butter

(all fat), cocoa powder, sugar, emulsifiers, and milk—far different from its origins. White

chocolate contains no real chocolate at all—it’s just cocoa fat, sugar, and flavorings.

Pleasure of consuming

Part of the pleasure of eating chocolate is due to the fact that its melting point is slightly below

human body temperature: it melts in the mouth. Chocolate intake has been linked with release of

serotonin in the brain, which produces feelings of pleasure.A study reported on the BBC

indicated that melting chocolate in one's mouth produced an increase in brain activity and heart

rate that was more intense than that associated with passionate kissing, and also lasted four times

as long after the activity had ended Research has shown that heroin addicts tend to have an

increased liking for chocolate; this may be because it triggers dopamine release in the brain's

reinforcement system. — an effect, albeit a legal one, similar to that of opiates.

Potential health benefits and risks

Recent studies have suggested that cocoa or dark chocolate may possess certain beneficial effects

on human health. Dark chocolate, with its high cocoa content, is a rich source of the falconoid

epicatechin and Gallic acid, which are thought to possess cardio protective properties. Cocoa

possesses a significant antioxidant action, protecting against LDL oxidation, perhaps more than

other polyphone antioxidant-rich foods and beverages. Processing cocoa with alkali destroys

most of the falconoid. Some studies have also observed a modest reduction in blood pressure and

flow-mediated dilation after consuming approximately 100g of dark chocolate daily. There has

even been a fad diet, named "Chocolate diet", that emphasizes eating chocolate and cocoa

powder in capsules. However, consuming milk chocolate or white chocolate, or drinking milk

with dark chocolate, appears largely to negate the health benefit. Chocolate is also a calorie-rich

food with a high fat content, so daily intake of chocolate also requires reducing caloric intake of

other foods.

Chocolate market in India

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The size of the chocolate market in India is about 4,000 tonnes and is valued at Rupees 6500

million (US$ 130 million). Cadbury India has the biggest market share at 70 per cent while

Nestle is the second largest at 20 per cent. Cadbury’s reaches 0.6 million retail outlets.

Confectionary Unit 2006-

07

Growth 2007-

08

Growth

Sugar Confectionary / gums

(Volume)

Tones 163110 10 176170 8

Sugar Confectionary / gums

(Value)

Rs

Billion

16.8 10 18.5 6

Chocolates (Volume) Tones 27000 9 30000 10

Chocolates (Value) Rs

Billion

8.5 12 9.4 10

Chocolates is impulse category

The impulse category is finally driven by visibility and purchasing power of consumers.

Traditionally, this is how products are positioned within the impulse category. First come soft

drinks, which is a major market. They are followed by biscuits, sugar confectionery, ice creams

and salted snacks. In the past, chocolate companies used to consider only the different brands in

the chocolate market as their competitors. That was a mistake.

In real life, chocolate products are fighting for a share of the consumers' pockets. They are facing

competition not only from chocolates but also other impulse products such as soft drinks,

biscuits, salted snacks and ice-cream. To maintain the share of the chocolate market in the

impulse market, the chocolate industry has to make sure that it grows in line with the impulse

market or grows faster than that. Since the share of chocolates in the impulse category is just six

per cent, the opportunities are plenty here.

Despite the fact that Indians have strong affinity for sweets, the size of domestic confectionery

market is small on account of traditional consumer tastes and habits. The Chocolate market in

India is a niche market penetrated largely in urban areas and per capita consumption is low as

compared to those in developed countries of the West.

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As an addiction

Chocolate contains a variety of substances, some of which are addictive . These include:

Sugar: Chocolate bars (as opposed to cocoa) contain large amounts of sugar.

Theo bromine: This is the primary alkaloid found in cocoa and chocolate, and is one of

the causes for chocolate's mood-elevating effects. This mild stimulant belongs to the

methylxanthine family, which also includes the similar compound caffeine, with which

Theo bromine is frequently confused.

Anandamide: An endogenous cannabinoid.

Tryptophan: An essential amino acid that is a precursor to serotonin, an important

neurotransmitter involved in regulating moods.

Phenethylamine: An endogenous amphetamine. Often described as a 'love chemical'.

However, it is quickly metabolized by the enzyme MAO-B, preventing significant

concentrations from reaching the brain. It can cause endorphin releases in the brain.

Caffeine: This stimulant is present mainly in coffee and tea. Exists in chocolate in very

small amounts

SWOT ANALYSIS of Chocolate Industry

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Strengths

Customers of chocolates are not price sensitive

The consumer is not price sensitive. But the category is price sensitive. Downgrading does

happen in other FMCG products. Chocolate demand is however more a function of affordability.

Demand growth depends on shifts in income pyramid. When the economy grows at a lower pace,

the upward shift in income pyramid is slower. This affects the rate at which new consumers are

added. But existing consumers, who can afford the product do not downgrade. When we

introduce lower priced products in smaller sizes, we add to the consumer base. Our existing

consumers do not start buying the smaller chocolates.

Weakness

Building a direct network of retailers i.e weakness of storage and logistics

Chocolate needs to be distributed directly, unlike other FMCG products like soaps and

detergents, which can be sold through a wholesale network. 90% of our products are sold

directly to retailers. Building such a direct network in for distribution is a daunting task.

Chocolates are not viewed as a snack food

Behaviorally, chocolates are still consumed as a chocolate and not as a filler. Perk still competes

with a Dairy Milk and not with biscuits/ other snack foods. India is still far away from using

chocolates as a snack food. The chocolate consumers need to have an offer that adds value

before accepting chocolates as a snack. Because at the end of the day, how many Indians can

afford a snack food priced at Rs16-17 for 50gms?

Low levels of consumption

Compared to Western countries, chocolate consumption in India is considered to be on the low

side. Whilst per capita chocolate consumption is a buoyant 8 kilograms in the UK, it stands at a

rather modest 165 grams in urban India.

Opportunity

Huge untapped urban population (middle class population)

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Chocolate consumption in urban India itself is low. There is a large untapped demand in urban

market alone. Only 60mn people out of the urban middle class population of about 280mn

consume chocolates.

Threats

Threat from free availability of imported brands

The premium brands, which come through official channels, do not pose a threat to the chocolate

market, as these cater to a small niche market. However there is a lot of dumping from

neighboring countries like Dubai, Nepal, etc of inferior brand of imported chocolates. These are

not only of low quality, but are brought very near to their expiry dates. Most of the cheap

chocolate brands that are available do not meet Indian Food Regulations. A legislation is

required for these brands to conform to Indian disclosure norms on price, manufacture date,

ingredients, etc which has already been issued.

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MARKET SHARE OF VARIOUS PLAYERS IN

CHOCOLATE INDUSTRY

Cadbury

Nestle

Amul

Others69%

22%

7%

2%

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MAJOR MARKET PLAYERS IN

INDIA

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Cadbury India Ltd

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

2007-8, 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.

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, Temptations, Bounville, Five Star, Perk, Gems, etc. Dairy milk is the largest chocolate

brand in India.

Cadbury is mainly into three segments

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

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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), Eclairs (Cadburys' Eclairs),

toffees (English Toffee).

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 Mint/ Breath freshness brands in

India.

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 2004 to US$ 166.3 million in 2007-8.

Factors for Success

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.

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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

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.

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

Managerial Talent

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

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.

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Future Plans

Cadbury India expects strong growth in India in future. The company plans to increase the

franchise of its existing brands and continue to explore new product opportunities including

adjacent market opportunities. Cadbury India is also looking for more opportunities in the

SAARC region.

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Nestle India limited

Nestle India Ltd, 51% subsidiary of Nestle SA , is among the leading branded food player in the

country. It has a broad based presence in the foods sector with leading market shares in instant

coffee, infant foods, milk products and noodles. It has also strengthened its presence in

chocolates, confectioneries and other semi processed food products during the last few years.

The company has launched Dairy Products like UHT Milk, Butter and Curd and also ventured

into the mineral water segment in 2001. Nestle’s leading brands include Cerelac, Nestum,

Nescafe, Polo, Maggie, Everyday, Sauces, Kitkat, Munch, Milkmaid and Pure Life.

Nestle has a presence in the following categories - Baby Food, Milk products, Beverages

(Coffee, malted beverage), Chocolates & confectionery and other processed food products.

Category wise turnover breakup and growth

 

% Contribution

to turnover

2007

Rs mn

2008

Rs mn % yoy

Milk Products 43 8159 7375 10.6%

Beverages 29 5627 4903 14.8%

Culinary Products 14 2764 2310 19.7%

Chocolate & Confectionery 14 2646 2179 21.5%

Total   19197 16768 14.5%

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Chocolates & Confectionery

Nestle forayed into chocolates & confectionery in 1990 and has cornered a fourth share of the

chocolate market in the country. The category contributes 14% to Nestle ‘s turnover. It has

expanded its products range to all segments of the market The Kitkat brand is the largest selling

chocolate brand in the world. Other brands include Milky Bar, Marbles, Crunch, Nestle Rich

Dark, Bar-One, Munch etc. The sugar confectionery portfolio consists of Polo, Soothers, Frootos

and Milkybar Eclairs. All sugar confectionery products are sold under the umbrella brand

Allen's. Nestle has also markets some of its imported brands like Quality Street, Lions and After

Eight. New launches such as Nestle Choco Stick and Milky Bar Choo at attractive price points to

woo new consumers. Chocolate confectionery sales registered a strong 21.5% yoy growth in

2001 aided by good volume growth in Munch, Kitkat and Classic sales. Nestle relaunched Bar-

One during the year

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Amul India limited

Amul, formed in 1946, is a dairy cooperative movement in India. It is a brand name managed by

an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd.

(GCMMF), which today is jointly owned by some 2.41 million milk producers in Gujarat, India.

It is based in Anand town of Gujarat and has been a sterling example of a co-operative

organization's success in the long term. 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. It is also the

world's biggest vegetarian cheese brand.

Products:

Amul's product range includes milk powders, milk, butter, ghee, cheese, curd, chocolate, ice

cream, cream, shrikhand, paneer, gulab jamuns, basundi, Nutramul brand and others. In January

2006, Amul plans to launch India's first sports drink Stamina, which will be competing with

Coca Cola's Powerade and PepsiCo's Gatorade.

Amul is the largest food brand in India with an annual turnover of US $868 million (2005-06).

Currently Amul has 2.41 million producer members with milk collection average of 5.08 million

litres /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. Other potential markets being considered include Sri Lanka.

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Chocolates ad spends in TV saw 31% growth in

2008

(24 January, 2008)

Key Findings:

Chocolates advertising spends in TV grew 31 per cent in 2008 compared to 2007

Cadbury's India, the highest spender in chocolates in 2008

Cadbury Dairy Milk chocolate leads chocolates advertising in 2008

Focus on entertainment + kids channels

Just 11 per cent of advertising spends used to boost up sales

This week, AdEx India looks at the 'Chocolates' category. Let's look at the advertising spends in

chocolates category across the years 2007-08.

  Growth of 31 per cent in chocolates advertising spends in 2008 compared to 2007.

2003, the only year to observe a dip in chocolates advertising on TV.

Let's find out who contributes the maximum advertising in the year 2008 on television?

Top five spenders constitute 98 per cent of the advertising revenue

Cadbury's India, the highest spender in 2008

Let's look at top 10 Chocolates brands advertised on television in 2008

Top 10 chocolates brands constitute 81 per cent advertising spends

Cadbury Dairy Milk chocolate at first position with 15 per cent share

Nestle Munch at second position

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REVIEW OF LITERATURE

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Research conducted by Nicholas Piramal Ltd

Interesting things begin to happen at this time, in "chocolate" history! Chocolate begins to have

strange effects in the love life of people who consume it! Francisco Rauch publishes a treatise, in

which he declares that chocolate is "widely accountable for the committal of various excesses

especially in the case of monks!"

"What was this strange effect?" scholars asked. Dr. Duncan of the faculty of Montpelier writes

that chocolate, coffee and tea were first used as medicines, but since these were made delicious

by sugar, they became a poison! Scholars and scientists began to observe the aphrodisiac

properties of chocolate!

In 1712, The Spectator newspaper in London proclaimed " I shall advise my fair readers to be in

a particular manner careful how they meddle with romances and chocolate!"!"

The big names in chocolate began to spring up all over the world. Ghiradelli in California,

Cailler in Switzerland, Van Houten in Belgium, Peters in Holland. Bourneville was famous for

its cocoa, and Cadbury for its Milk chocolate, and Lindt for a special technology that made

chocolate smooth and melt in the mouth! Chocolate began to be added to pastry and Sprungli -

the place of pilgrimage for dessert addicts gave away 2 million bars of chocolate on it's 150

anniversary. The owners of Mars are still one of the richest families in the world!

Is chocolate healthy? This controversial question arouses much debate amongst doctors. Here is

the nutritional value of a 100 gm bar of chocolate - 100 gms

Calories Protein Carbohydrate Fat

Milk chocolate 588 8.7 54.5 37.6Dark chocolate 544 5.6 52.5 35.2Cocoa Powder 452 20.4 35.0 2.56

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According to Professor David Warburton ,head of psychopharmacology at the University

of Reading

For chocoholics the world over, here's another reason to unwrap yet another bar of the good

stuff. Fat content and calories notwithstanding, it appears that enjoying moderate amounts of rich

chocolate do not turn you into the proverbial slow slob. Rather, recent studies clearly show that

the consumption of chocolate helps make a person more clear-headed and tranquil. Three

standard-size milk chocolate pieces improve clarity of thought by around 30 per cent.

According to Professor David Warburton, head of psychopharmacology at the University of

Reading, on a standard troubled/tranquility scale, the consumption of moderate amounts of

chocolate shows an increase in tranquility of up to 52 per cent.

Dr Faiz Kermani

Compared to Western countries, chocolate consumption in India is considered to be on the low

side. Whilst per capita chocolate consumption is a buoyant 8 kilograms in the UK, it stands at a

rather modest 165 grams in urban India. The recent international release of the film 'Charlie and

the Chocolate Factory' should help manufacturers raise the profile of chocolate, but most

companies remain puzzled as to what they must do to bring their products to the attention of the

average Indian consumer.

A new dawn for chocolate research

Chocolate-based research cannot be ignored but until now it has been viewed as an academic

curiosity. Furthermore, most of the chocolate research has been sponsored by food companies

and observers have suggested that transforming chocolate into a health-related product is not a

new concept, but has resulted in little progress over the years. During 1995, Japan held an

International Symposium on Chocolate and Cocoa Nutrition, which led to a series of popular

television broadcasts called "the surprising effects of cocoa". This stimulated considerable

medical research into the potential health benefits of chocolate - as well as huge sales of cocoa

products.

Yet, the willingness of certain food companies to openly raise the idea that chocolate could have

healthcare benefits could change how this research is viewed. The main driver of recent events

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appears to be Mars Inc., which held a conference in Switzerland where researchers discussed

how pharmaceutical products could be derived from cocoa sources. It is not clear what is

stimulating its confidence in publicizing this work, but Mars Inc. is publicly upbeat about its

latest developments and believes it possesses intellectual property of interest to pharmaceutical

companies.

It claims to be discussing licensing deals and joint venture agreements based on developing

products from cocoa-derived flavanoids. As the second-largest chocolate manufacturer in the

USA and one of the world's largest food-processing companies, and with a reported value of

over US$30 billion, its move towards the pharmaceutical sector cannot be ignored. For the

pharmaceutical sector, which is seeking new sources of innovative products, this could be one of

the most unusual avenues to be explored in a long time.

Karvy research desk

The Chocolate market in India is a niche market penetrated largely in urban areas and per capita

consumption is low as compared to those in developed countries of the West. But future

prospects of the chocolate category looks good as the company plans to move into the arena of

snack foods, as it has done in the Western markets

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RESEARCH METHODOLOGY

26

RESEARCH METHODOLOGY

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

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 those 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.

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Our research problem:

Is there a scope for new brand of chocolates to enter into the chocolate market in India?

Research objectives:

Are there any unnoticed opportunities existing in chocolate market in India i.e. is there

any demand/need of consumers which is not being fulfilled by existing brands.

To see whether the new brand will be able to sustain its position against the market leader

& other competitors.

To know the buying pattern, consumer preference and the distribution channel used for

the Chocolates.

Will the consumers accept the new brand.

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.

Research Plan

Data SourcesResearch Design

Research Approaches

Research Instrument

Sampling Plan

Contact Methods

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Data Sources

The researcher can gather both secondary and primary data. Secondary data are data that were

collected earlier whereas primary data are data freshly gathered for a specific purpose or for a

specific research project.

In this market research i have used both secondary as well as primary data but my main focus is

on primary data (Through Questionnaires)

Choice of Research Design

Research design is the plan, structure and strategy of investigation conceived so as to obtain

answers to research questions and to control variance. A research design specifies the methods

and procedures for constructing a particular study. Broadly speaking the research design can be

grouped into three categories- exploratory research, descriptive research and causal research.

An exploratory research focuses on generation of new ideas and is generally based on secondary

data and is a preliminary investigation. A descriptive study is undertaken when the researcher

wants to know the characteristics of certain group and is well structured. A causal research is

undertaken when the researcher is interested in knowing the cause and effect relationship

between two or more variables.

Data Sources

Secondary Data Primary Data

29

In this research i have undertaken descriptive studies in which a cross sectional study was

conducted through means of a survey.

Research Approaches

Primary data can be collected in five ways: through observations, focus groups, surveys,

behavioral data and experiments.

In this research i have used surveys as our research approaches since it is best suited for

descriptive research and helps immensely in understanding the people’s knowledge, preferences

and satisfaction.

Research design

Exploratory design Descriptive design Causal design

Cross sectional

Surveys

Research Approaches

Observations Focus groups Surveys Behavioral data Experiments

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Research Instruments

Marketing researches have a choice of three main research instruments: questionnaires,

psychological tools and mechanical devices.

I will discuss in detail the format of the structured non-disguised questionnaire later in this

report.

Sampling Plan

After deciding on the research approach and instruments, the marketing researcher must design a

sampling plan. This calls for three decisions regarding sampling unit, sample size and sampling

procedure.

Research Instruments

Questionnaires Psychological tools Mechanical devices

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Sampling Unit: Who is to be surveyed? In our research we have taken the whole target market

as our sampling unit out of which samples would be selected and surveyed. The target market of

chocolates is right from children to old people.

Sample Size: How many people are to be surveyed? Our sample size is 100 respondents

(consumers) with approximately equal number of males and females. Also we surveyed 22

retailers

Sampling Procedure: How should the respondents be chosen? We have decided to base our

sample respondents on basis of quota sample in which a total of 100 respondents are to be

covered with the following inter related controls:

Age Group Male Female Total

5-10 & 11-15 12.5 12.5 25

16-20 12.5 12.5 25

21-35 12.5 12.5 25

35- 50 6.25 6.25 12.5

50 & above 6.25 6.25 12.5

Total 50 50 100

Sampling Plan

Sampling unit

Sample size50 consumers + 22 retailers

Sampling procedure i.e. sample design

Non- probability sampling

Quota Sample

32

The above figures are in percentages and are an approximate estimation done before the survey

was conducted so as to understand the average distribution of respondents across the various age

groups.

Contact methods

Once the sampling plan has been determined, the marketing researcher must decide how the

subject should be contacted: mail, telephone, personal or online interview.

In this survey i have made use of two forms of contact methods: Personal interview and

telephonic survey.

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.

Contact methods

Mail Survey Telephone interview Personal interview Online interview

Intercept interview

Mail SurveyTelephone interview

33

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

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

our recommendations.

34

MARKET SURVEY

35

ANALYSIS OF THE QUESTIONNAIRE

This questionnaire is a structured non-disguised questionnaire containing both open ended and

close ended questions. Let us now understand the significance of the various questions asked in

the questionnaire and what information i hoped to collect through each of the question.

QUESTIONNAIRE FOR CONSUMERS

Name: _______________________________________Gender: _____________

This question would help to achieve the conditions of sample of surveying 50% males and 50%

females.

Age group:

5-10 yrs

11-15 yrs

16-20 yrs

21- 30 yrs

31-40 yrs

40 yrs & above

This question would help me to understand the buying preferences and the demands of

consumers as per the age structure.

Place of residence: ____________________________________________________

Occupation: __________________________________________________________

Location of work/college/school: __________________________________________

Q.1 Monthly spending on clothes, eating out, hanging with friends etc

Less than 10,000 10,000-15,000

15,000- 20,000 More than 20,000

These questions were included so as to understand the correlation between the occupation,

lifestyle, social class and the influence of social environment i.e friends and family.

36

Q.2 In one word describe a foodstuff that says “Sharing your joy with people you love”

_____________________________________________________________________

(Word association question)

Through this question i wanted to know whether the consumers perceived chocolates as a symbol

of love, togetherness and happiness.

Q.3 What do you normally prefer to eat as a sweet item ___________________________-

__________________________________________

(Completely unstructured question)

Through this question i wanted to estimate the proportion of population who preferred chocolates

as their main sweet item.

Q.4 Do you like chocolates?

(Likert scale question)

Very much

Average

Not much

Not at al l

This question helps to understand the level of like and dislike for chocolates amongst the target

population.

Q.5 How many times you buy chocolates?

(Multiple choice question)

Once every day

2- 3 times a week

Once a week

On special occasions only

Others, please specify

This will help to understand the buying pattern and schedule.

Q.6 What do chocolates signify to you? ________________________________________-

___________________________-

37

(Unstructured question)

This question was designed to have an insight into the customers mind to understand the

emotions which he associates with chocolates.

Q.7 Where do you normally buy chocolates from?

(Dichotomous Question)

Your local kirana shops

Supermarkets like Big Bazaar

This question would help to understand which of the distribution channel is more effective and

preferred by the consumers.

Q.8 Rate your preferences in choice of chocolates on a scale of 1-5 (5 being highest rank)

(Importance scale)

Taste

Sweetness

Price

Calories

Brand of the chocolate

Packaging

Ingredients/ flavours

This question was designed so that one can understand the customers’ scale of importance to the

different attributes of chocolates.

Q.9 Which brand of chocolates you prefer?

(Multiple choice question)

Nestle

Cadbury’s

Amul

Foreign brands like Hershey’s etc

Any other, please specify _______________________________________________

The simple purpose of this question was to find out the customers preferred brand of chocolates.

38

Q.10 Why do you prefer that particular brand?

(Completely unstructured questions)

________________________________________________________________________________________________________________________________________________Q.11 Is there anything that you feel is lacking in your preferred brand of chocolates? If yes,

please describe ________________________________________________________________

________________________________________________________________________

These questions would help me to find out the reasons behind the customers preference of a

particular brand of chocolates and also to find out if the customers felt something lacking in the

existing varieties of chocolates.

Q.12 Do you think that the present choices available in chocolates are costly? If yes, what

will be your ideal price range?

Q.13 Would you prefer to switch to chocolates of another brand if it is cheaper than your

preferred brand without any change in quality & taste?

(Intention to buy scale)

________________________________________________________________________________________________________________________________________________

These questions were formed so as to take the customers opinion regarding the prices of the

existing brands of chocolates and also their ideal price range. As well as to find out the

customers intention to buy in case of a new brand of chocolate if it is priced cheaper.

Q.14 If you were given a chance to prepare a new variety of chocolates what would you

make? i.e Any new flavours or ingredients that you wish for in chocolates.

______________________________________________________________________________

__________________________________________________________________

39

This is the most important question for the survey which helps us to fulfill the research objective

of uncovering hidden opportunities i.e. to find out the demands of customers in terms of

ingredients and flavours of chocolates which are not available in the existing brands.

QUESTIONNAIRE FOR RETAILERS

Name of the shop: ________________________________________________________

Location: _______________________________________________________________

These 2 questions will help me to form a relationship between the chocolate sales of the retail

unit and its location i.e. geographical segmentation.

Q.1 Which brands of chocolates does the shop sell?

______________________________________________________________________________

__________________________________________________________________

Q.2 Highest sales of which brand of chocolates ( i.e. how many in 1 day)

________________________________________________________________________

These questions are formed to find out the different brands of chocolates stocked by the retailer

and also to find which brand has the highest sales.

Q.3 What are customers preferences in the choice of chocolates?

Taste

Sweetness

Price

Calories

Brand of the chocolate

Packaging

Ingredients/ flavours

40

This will help to get the retailers point of view to the importance given to the various attributes

of chocolates by consumers.

41

Q.4 Sales of chocolates are highest during which period?

________________________________________________________________________

This question helps to understand the buying pattern of consumers.

Q.5 Has the demand for chocolates risen in the past few years?

This question helps us in answering the question as to whether the market for chocolates has

increased or

42

DATA ANALYSIS

Sample Size: 122 respondents

100 consumers – 82%

22 retailers – 18%

SAMPLE SIZE

Consumers 82%

Retailers 18%

Consumers

Retailers

Males Females

46% 54%

Total consumers =100

43

CONSUMERS

Males 46%

Females54%

Males

Females

44

Age Group Respondents (%)

5-10 26 11-15

16-20 28 21-30 24 35- 50 ` 11

50 & above 11

AGE GROUP

26%

28%24%

11%11% 5-10 & 11-15

16-20

21-30

35- 50

50 & above

Interpretation:

This pie chart shows the % of the respondents who belong to the different age groups.285 belong

to the age of 16-20 years, 26% belong to the category of 5-10 yrs and so on.

Age group:

5-10 & 11-15 years : 26 respondents

Males: 16 respondents

Females: 10 respondents

45

AGE GROUP: 5-10 & 11-15

Males62%

Females38%

Males

Females

Age group: 16-20 years : 28 respondents

Males: 15 respondents

Females: 13 respondents

AGE GROUP : 16 - 20

Males, 15, 54%

Females, 13, 46%

Males

Females

Age group: 21-30 years: 24 respondents

Males: 12 respondents

Females: 12 respondents

46

AGE GROUP: 21-30

Males , 12, 50%

Females, 12, 50%

Males

Females

Age group: 35- 50 years: 11 respondents

Males: 2 respondents

Females: 9 respondents

AGE GROUP: 35- 50

Males, 2, 18%

Females, 9, 82%

Males

Females

Age group: 50 years & above: 11 respondents

Males: 2 respondents

Females: 9 respondents

47

AGE GROUP: 50 & above

Males, 2, 18%

Females, 9, 82%

Males

Females

OCCUPATION No. of respondents

Student: 53%

Service & Business: 25%

Housewife: 14%

Retired: 8%

OCCUPATION

53%25%

14%8%

Student

Service &Business

Housewife

Retired

Correlation between age group and monthly spending

Age group: 5-10 & 11-15

48

AGE GROUP: 5-15 & MONTHLY SPENDING

5, 19%

6, 23%

6, 23%

9, 35%0-50

50-100

100-500

500 and above

Age Group: 16-20

AGE GROUP: 16-20 & MONTHLY SPENDING

7, 25%

5, 18%12, 43%

4, 14%

100-500

500-1000

1000-5000

5000 & above

Age Group: 21-35

49

AGE GROUP: 21-35 & MONTHLY SPENDING

1, 4%

11, 45%

9, 38%

3, 13%

100-500

500-1000

1000-5000

5000 & above

Age Group: 35 & above

AGE GROUP: 35 & above & MONTHLY SPENDING

2, 9%

7, 32%

7, 32%

6, 27%

100-500

500-1000

1000-5000

5000 & above

Question 3

Normally prefer as a sweet item

50

Options No. of respondents

Chocolates: 53%

Ice creams 11%

Traditional Sweets: 28%

Cake 6%

PREFERENCE AS A SWEET ITEM

54%

11%

29%

6% Chocolates

Ice creams

Traditional Sweets

Cake

Interpretation:

This pie chart shows the preference of different people in relation to a sweet item. 54% consider

chocolates as a sweet item.29% consider traditional sweets as the preference.11% consider ice

creams and the remaining 6% consider cake as a preference of sweet item.

Question 4

Do you like chocolates?

51

Options No. of respondents (%)

Very much: 59%

Average : 28%

Not much: 11%

Not at all: 2%

LIKE AND DISLIKE OF CHOCOLATES

59%28%

11%2%

Very much

Okay Okay

Not much

Not at all

Interpretation:

This pie chart shows the likes and dislikes of chocolates 59% say they like chocolates very

much. 28% of the respondents say they find it average, 11% don’t like it much and the rest don’t

like it at all.

Question 5

52

How many times do you buy chocolates?

Options No. of Respondents

Once every day: 33%

2-3 times a week: 30%

Once a week: 12%

Special occasions: 25%

BUYING PATTERN

Once every day33%

2-3 times a week30%

Once a week12%

Special occasions

25% Once every day

2-3 times a week

Once a week

Special occasions

Interpretation:

This pie chart shows the buying pattern of the cosumers.33% of the respondents buy it once

every day.30% buy 2-3 times a week, 25% buy it on special occasions and the rest 12% buy it

once a week.

Question 6

Where do you normally buy chocolates from?

53

Options No. of respondents (%)

Kirana shop: 79%

Supermarkets: 9%

Both: 12%

PREFFERED DISTRIBUTION CHANNEL

79%

9%

12%

Kirana shop

Supermarkets

Both

Interpretation:

This pie chart shows the preferred distribution channel 79% from the Kirana Shops 95 from

the supermarkets and the rest of the 12% buy from both the stores.

Question 5

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

54

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

Taste28%

Brand27%

Ingredients25%

Packaging20%

Taste

Brand

Ingredients

Packaging

On an average the scale of preference was as follows:

1st priority: Taste

2nd priority: Brand

3rd priority: Packaging

4th priority: Flavours

5th priority: Sweetness/less sweet

6th priority: Calories

7th priority: Price

Question 6

Which brand of chocolates you prefer?

55

Options No. of respondents (%)

Cadbury’s: 57%

Nestle & Cadbury: 18%

Cadbury & Foreign Brands: 10%

Only Foreign Brands: 9%

Amul: 2%

Nestle: 2%

Nestle & Foreign Brands: 2%

MARKET LEADER

57%18%

10%

9%

2%

2%

2% Cadbury’s

Nestle & Cadbury

Cadbury & ForeignBrands

Only Foreign Brands

Amul

Nestle

Nestle & ForeignBrands

Interpretation:

This pie chart shows the Market leaders in the category of chocolates according to the

preferences of the Customers. 57% are in the favor of Cadbury, 18% of Nestle and Cadbury.

10% of Cadbury and the foreign brands 2% for Amul 2% for nestle alone and the remaining 2%

for Nestle and Foreign Brands.

Question 8

Why do you prefer your choice of brand?

56

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.

Question 9

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

existing varieties)

Options No. of respondents

No: 84%

Yes: 16%

SATISFACTION GRAPH

No84%

Yes16%

No

Yes

Interpretation:

This pie chart shows the satisfaction graph 84% of the respondents are satisfied with the existing

brands and the remaining 16% are not satisfied with the existing brands. (The target customers)

The respondents, who replied yes, have stated the following attributes as lacking in the existing

varieties of chocolates:

57

Lack of chocolates in attractive shapes

High price

Not enough crunchier

Not good as compared to foreign brand

Question 10

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

price range?

Options No. of respondents

Yes: 45%

No: 55%

PRICES: HIGH OR LOW

No55%

Yes45% No

Yes

Interpretation:

This pie chart shows whether the price of the chocolates are considered high or low.45% say

they find it high and the rest don’t find it high.

58

Ideal price range:

Quantity Existing prices Ideal price range

40 gm Rs 18-20 Rs 12-15

23 gm Rs10 Rs 6-8

15 gm Rs 5-7 Rs 3-5

Question 11

Would you prefer to switch to another brand?

Options No .of respondents

Yes: 53%

No: 43%

Indifferent: 4%

PRICE SENSITIVITY OF CONSUMERS

No43%

Yes53%

Indifferent4%

No

Yes

Indifferent

Interpretation:

This pie chart shows the price sensitivity of consumers. This pie chart shows whether any change

in the price of the product will lead to change of brand by the consumers.53% said they are price

sensitive.43% would not change the brand with the change in the price and the remaining 4%

remain indifferent towards the price sensitivity.

59

New flavors/ ingredients

98% of respondents said that they wanted a healthier, less sweet and lesser calories chocolates

which even diabetic people can eat.

Only 2% said that they wanted chocolates to be more sweeter.

54% of the respondents said that they wanted new flavours such as:

Vanilla- 10%

Butterscotch- 9%

Black forest- 2%

Strawberry- 10%

Coffee-5%

Mint-4%

Elaichi-1%

Swiss flavor- 1%

Cake flavours-1%

Kesar-2%

Caramel 5%

Bitter cocoa-2%

Ice cream chunks in between of chocolate balls

28% of respondents said that they want an abundant of nuts and dry fruits like cashews,

almonds, pistachios, anjeer, walnuts and so on.

27% of the respondents said that they want fresh fruits/ fruit flavored chocolates like:

Litchi- 1%

Orange-2%

Mango-6%

Fresh pineapple-3%

60

DATA ANALYSIS OF RETAILERS

Question 1

Which brand of chocolates does shop sell?

Retailers stock No. of respondents

Cadbury’s 22%

Nestle 19%

Amul1 3%

Imported brands. 3%

Brand of chocolates the shop sells

48%

40%

6%6%

Cadbury’s

Nestle

Amul1

Importedbrands.

Interpretation:

This pie chart shows the brand of the chocolates that the shop sells 48% sell Cadbury in their

shops, 40% sell Nestle ,6% sells Amul and the remaining 6% sell imported Brands.

61

Question 2

Which brand has the highest sales?

HIGHEST SALES

Cadbury's, 19, 86%

Nestle, 3, 14%

Cadbury's

Nestle

Interpretation:

This pie chart shows the highest sale in the brand of chocolates Cadbury wins the race with 86%

of the sales and Nestle holds the second place.

Question 3

When is the sale of chocolates the highest?

Festivals, 19, 86%

All Time, 3, 14%

Festivals

All Time

Interpretation:

This pie chart shows the sale of chocolates is highest in which season 14% say all the time and

remaining 86% say during the special occasions.

62

Sales are normally higher during

Festivals

Special occasions like Valentines Day, friendship day, Christmas etc.

Question 4:

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

No. of respondents

23%

45%

14%

18%

0-10% 10-20%

20-40% Above 40%

Interpretation:

This pie chart shows the percentage of increase in the sales of the chocolates in the chocolate

industry.45% of the retailers say there is an increase of 10-20% whereas 23% of the retailers say

the increase falls between 0-10percent. 18% say the increase is above 40% and the rest 14% say

from 20-40%.

63

Options (Sales) No; of respondents

0-10% 05 10-20% 10 20-40% 03 Above 40% 04

LIMITATIONS

64

LIMITATIONS OF THE RESEARCH

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 100 thus cannot be said to be the correct representation of the target

market.

Fragmentation

Chocolates are not sold in exclusive shops but in simple retail shops which number 1 million in

India. Thus it is very difficult to estimate the sales and buying pattern of consumers in general.

Time limitation :

Due to the time constraint the research would not be able to cover the entire City Chandigarh.

Exclusive study could not be carried out.

65

FINDINGS AND

SUGGESTIONS

66

FINDINGS

In the age group of 16-20 and 21-30, the average monthly spend is not influenced by the

place of residence/ social class but rather on, where a person studies/works i.e. by the

social circle of his friends and colleagues.

The consumers by and large are satisfied with the present choices available in chocolates

i.e. there are no complaints of consumers as regards to existing varieties of chocolates

However there are many new wants and demands of consumers in terms of new flavours

and ingredients of chocolates which the present brands of chocolates have not introduced

into the Indian markets.

There is a substantially low margin of difference in terms of people who are sensitive to

price of chocolates and hence it cannot be proved conclusively that introducing a

chocolate at a lesser price than the prevailing price will lead to capturing of market share.

Consumers attach more value to the brand of the chocolates as well as the packaging i.e.

the quality of the chocolates.

79% of chocolate sales happen through Kirana shops i.e. mom and pop shops which says

that chocolate is a commodity which has to be available to the consumer when and where

he wants it. The sales of chocolates largely depend on its availability to the consumer at

his convenience.

67

RECOMMENDATIONS

There is a lot of demand for chocolates the consumers and yet a lot of it remains

untapped by the existing brands. So introducing a new brand/ player in the chocolate

market is certainly a feasible idea to a fair extent.

However since the present varieties of chocolates in terms of flavours & ingredients are

suiting the consumer needs, the new brand must seek to cater to the untapped demands of

consumers by introducing new flavours/ ingredients.

Also, from the above analysis we can see that there is no sufficient proof to show that

customers are price sensitive. Thus introducing a cheaper variety of chocolates may not

necessarily help in capturing substantial market share. However for the price sensitive

consumers, a lower end version of chocolates can be introduced.

Brand is a very important criterion of purchasing for the consumers. Hence instead of

trying to compete with huge brands like Cadbury’s and nestle, the new brand should try

to position itself in a new demand market.

Also it should try to develop and introduce healthier, less calorific chocolates that are projected

not just a sweet item/dessert but as a complete wholesome snack.

68

CONCLUSION

The chocolate industry has been changing tremendously whereby the consumption pattern of

chocolates has been increasing. The Chocolate market in India is a niche market penetrated

largely in urban areas and per capita consumption is low as compared to those in developed

countries of the West. But future prospects of the chocolate category looks good as the company

plans to move into the arena of snack foods, as it has done in the Western markets.

The research problem was to find out that is there a scope for new brand of

chocolates to enter into the chocolate market in India? And the Research objectives are:-

Are there any unnoticed opportunities existing in chocolate market in India i.e. is there

any demand/need of consumers which is not being fulfilled by existing brands.

To see whether the new brand will be able to sustain its position against the market leader

& other competitors

To know the buying pattern, consumer preference and the distribution channel used for

the Chocolates.

Will the consumers accept the new brand?

According to the data analysis the consumers by and large are satisfied with the present

choices available in chocolates i.e. there are no complaints of consumers as regards to

existing varieties of chocolates. There is a substantially low margin of difference in terms of

people who are sensitive to price of chocolates and hence it cannot be proved conclusively

that introducing a chocolate at a lesser price than the prevailing price will lead to capturing of

market share.

However there are many new wants and demands of consumers in terms of

new flavors and ingredients of chocolates which the present brands of chocolates have not

introduced into the Indian markets.

So in the end I would like to conclude that a new brand with different new

flavors can be accepted by the consumers. The retailers also have helped to know the sales

pattern of the consumers and which company has the largest sales.

69

BIBLIOGRAPHY

WEB SITES

www.indiainfoline.com

www.ibef.org.

http://www.karvy.com/compresearch/company/Cadbury/Cadbury_Mohit_shiva_new.htm

BOOKS

Kotler Philip marketing management 11Edition

Malhotra N.K Marketing Reserch.

70

ANNEXURES

71

QUESTIONNAIRE FOR CONSUMERS

Name: ____________________________________________Gender: _____________

Age group: Family Size:

5-10 yrs 3 members

11-15 yrs 4 members

16-20 yrs More than 4 members

21- 30 yrs

31-40 yrs

40 yrs & above

Place of residence: ____________________________________________________

Social Class: _________________________________________________________

Occupation: __________________________________________________________

Location of work/college/school:__________________________________________

Q.1 Monthly spending on clothes, eating out, hanging with friends etc (In Rupees)

Less than 10,000 10,000-15,000

15,000- 20,000 More than 20,000

Q.2 In one word describe a foodstuff that says “Sharing your joy with people you love”

_____________________________________________________________________

72

Q.3 What do you normally prefer to eat as a sweet item ___________________________

Q.4 Do you like chocolates?

Very much

Average.

Not much

Not at all

Q.5 How many times you buy chocolates?

Once every day

2- 3 times a week

Once a week

On special occasions only

Others, please Specify

Q.6 what do chocolates signify to you?

_______________________________________________________________________

Q.7 Where do you normally buy chocolates from?

Your local kirana shops

Supermarkets like Big Bazaar

Q.8 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

73

Q.9 Which brand of chocolates you prefer?

Nestle

Cadbury’s

Amul

Foreign brands like Hershey’s

Any other, please specify _______________________________________________

Q.10 Why do you prefer that particular brand?

______________________________________________________________________________

__________________________________________________________________

Q.11 Is there anything that you feel is lacking in your preferred brand of chocolates? If yes,

plz describe ________________________________________________________________

________________________________________________________________________

Q.12 Do you think that the present choices available in chocolates are costly? If yes, what

will be your ideal price range?

Q.13 Would you prefer to switch to chocolates of another brand if it is cheaper than your

preferred brand without any change in quality & taste?

______________________________________________________________________________

__________________________________________________________________

Q.14 If you were given a chance to prepare a new variety of chocolates what would you

make? i.e any new flavours or ingredients that you wish for in chocolates.

74

QUESTIONNAIRE FOR RETAILERS

Name of the shop: ________________________________________________________

Location: _______________________________________________________________

Q.1 Which brands of chocolates does the shop sell?

______________________________________________________________________________

__________________________________________________________________

Q.2 Highest sales of which brand of chocolates ( i.e. how many in 1 day)

Q.3 What are customers preferences in the choice of chocolates?

Taste

Sweetness

Price

Calories

Brand of the chocolate

Packaging

Ingredients/ flavours

Q.4 Sales of chocolates are highest during which period?

________________________________________________________________________

Q.5 Are there any customer complaints about the existing brands of chocolates?

________________________________________________________________________

Q.6 Has the demand for chocolates risen in the past few years?

_____________________________________________________________________

75