RESEARCH PROJECT

On
“Buying Behavior of consumers of age group 18-25
for milk chocolate bars with special reference to:-

(A study in AMBALA)

Submitted In partial fulfillment

Of degree of

Masters of Business Administration

Session 2009-2011
Paper Code (CP-402)

SUPERVISED TO: SUBMITTED BY:

Mrs. Pooja Anand Ankush Chander
Lecturer MBA- IV Semester
University Roll No.

SUBMITTED TO
ICL INSTITUTE OF MANAGEMENT AND TECHNOLOGY
SOUNTLI
(KURUKSHETRA UNIVERSITY, KURUKSHETRA)
 ACKNOWLEDGEMENT

“Gratitude is the hardest of emotions to express and one often does not find adequate words
to convey what one feels and trying to express it”
The present project file is an amalgamated of various thoughts and experiences .The successful
completion of this project report would have not been possible without the help and guidance of
number of people and specially to my project guide .I take this opportunity to thank all those
who have directly and indirectly inspired, directed and helped me towards successful
completion of this project report.

I am also immensely indebted to my project guide, Mrs. Pooja Anand Lecturer, ICL, for his
illumining observation, encouraging suggestions and constructive criticisms, which have helped
me in completing this research project successfully.

There are several other people who also deserve much more than a mere acknowledgement at
their exemplary help. I also acknowledge with deep sense of gratitude and wholehearted help
and cooperation intended to me by them.

ANKUSH CHANDER

2
 PREFACE

Research Project is the bridge for a student that takes him from his theoretical knowledge world
to practical industry world. The main purpose of it is to expose for industrial and business
environment, which cannot be possible in the classroom.

The advantages of this sort of integration, which promotes guided to corporate culture,
functional, social and norms along with formal teaching are numerous.

1) To bridge the gap between theory and practical.

2) To install the feeling of belongingness and acceptance.
3) To help the student to develop the better understanding of the concept and questions
already raised or to be raised subsequently during their research period.

“Buying Behavior of
The present report gives a detailed view of the
consumers of age group 18-25 for milk chocolate
bars with special reference to:-

. The research is definitely going to play an important role in developing an aptitude for hard
self-confidence.

3
 DECLARATION

“Buying Behavior of
I hereby declare that, the project entitled
consumers of age group 18-25 for milk chocolate
bars with special reference to:-

Assigned to me for the partial fulfillment of MBA degree from Kurukshetra University,
Kurukshetra. The work is originally completed by me and the information provided in the study
is authentic to the best of my knowledge.

This study has not been submitted to any other institution or university for the award of any
other degree.

ANKUSH CHANDER
MBA 4th SEM
. University Roll No.

4
 CERTIFICATE

This is to certify that ANKUSH CHANDER has completed the project entitled
“Buying Behavior of consumers of age group 18-25
for milk chocolate bars with special reference to:-

under my supervision. To the best of my knowledge, the report consists of result of the
empirical study conducted by the student. In my opinion, the work is of requisite standard
expected of an MBA student. Therefore, I recommend the same to be sent for evaluation.

Mrs. Pooja Anand

LECTURER

5
 CONTENTS

 Introduction to the study

 Objectives of the study

 Research Methodology

A. Problem Statement

B. Research Design
• Area of Study
• Objective of the Study
C. Data Collection
• Data Collection Methods
• Data Collection Techniques
D. Sampling Design
• Sampling Unit
• Sample Size
• Sampling Techniques
• Limitations of the study

 Analysis & Interpretation

 Findings

 Conclusions

 Suggestions

 Annexure

• Questionnaire

6
• Bibliography

INTRODUCTION TO
THE STUDY

7
 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.

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.

8
 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

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.

9
 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 eith 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.

10
 EVOLUTION OF CHOCOLATE

(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 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

11
 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 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

12
 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

13
 business and in 1866 purchase a Van Houton machine. They began to
market Cadbury cocoa powder. By 1868, the Cadbury Company
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

14
 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 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.

15
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.

16
 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.

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.

17
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.

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.

18
 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 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.

19
 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.

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.

20
Consumer
Behavior

21
 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

22
 CONSUMER DECISION MAKING PROCESS
External influences
Socio culture Environment
Firm’s Marketing Efforts • Family
• Reference Group
• Product • Other non-commercial
• Price influence
Input • Place • Social class
• Promotion • Culture and sub-
culture influences

Consumer Decision Making

Psychological Factors
• Need recognition
• Information search
• Perception
• Valuation
• Motivation
alternatives
• Attitude
Process • Learning
• Personality

Experience

Post Purchase Behavior

Purchase
• Trial
Output
• Repurchase

Post purchase evaluation

23
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

24
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:
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.

25
 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.

26
 OBJECTIVE OF 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
resident of AMBALA

5. To checkout the satisfaction level of the consumers for chocolate bars they
are using.

27
Research Methodology

RESEARCH METHODOLOGY

28
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:-

29
 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.
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 JAMMU 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.

30
a) Area of study

The area of the study is different Markets of AMBALA in order to collect the
Primary data from the respondents.

b) Study area

Study area is AMBALA

.
c) Target Segment
Consumers of Milk chocolates bars of age group 18-25

D) 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.

E) 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.

31
 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.

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 and Portals

Formation of Questionnaire

32
 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.

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:

33
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 AMBALA 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.
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.

34
 Data Analysis
&
Interpretation

35
 ANALYSIS AND INTERPRETATION

Q1. Which companies’ chocolate do you prefer to purchase?

Brand Name Percentage

Cadbury 40

Nestle 35

Amul 25

25%
40% Cadbury
Nestle
Amul
35%

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?

36
 Pattern of consumption Percentage of consumption
More than one per day 15
Daily one 25
3-4 chocolates per week 45
Weekly 10
Rarely 5

Percentage of consumption
More than one
per day
Daily one
10% 5% 15%
3-4 chocolates
25% per week
45% Weekely

Rarely

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?

37
 Answer Percentage

Yes 68

No 32

Percentage

32%

Yes
No
68%

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)?

38
 Factors Response Percentage
Price 6 18
Quality 12 38
Brand Name 3 9.5
Advt. and Ref. Group 3 9.5
Taste 8 25

Percentage
Price

Quality
25% 18%
Brand Name
9%
10% 38% 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.

39
 Consumer's consideration Percentage
Price 16
Taste 48
Brand 18
Packaging 9
Availability 9

Percentage

Price

9% 16% Taste
9%

Brand
18%
48% 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.

40
 Media Percentage
Newspaper 22
Magazine 14
Radio 4
Television 54
Others(hoardings,banner,pamplets
etc) 6

Percentage

Newspaper

6% Magazine
22%
Radio
14%
54% Television
4%

Others(hoardings,b
anner,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.

41
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

2 Friends

39 Family
Retailers
55
Celebrity
13 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.

42
Q8. Is it right to say that the taste of chocolate should be different for
different age groups?

ANSWER Percentage

YES 55

NO 45

Percentage

Pie chart says

45% Yes that 55% of the
55% No
consumer
prefers that
the taste
should be
different for
different age groups but 45% consumers prefer that the taste should be
same for all age groups. This is a matter of concern.

43
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
Highly
satisfied
8% Satisfied
12% 27%

Undecided
21%
32% Dissatisfied

Highly
dissatisfied

About 27%of consumers are highly satisfied with the present brands of Milk chocolate bars in
JAMMU and 32% are satisfied. if we consider brand wise then milk chocolate bar of Cadbury
is the most preferred brand in JAMMU which holds 40% of the market share and after that
Nestle has second position with a holding of 35% of the market share and the least preferred
brand from the take brand to make report is Amul with a holding of 25% of market share

44
Findings
&
Conclusion

45
 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 with4brands 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 AMBALA 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

46
 consumer of AMBALA 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.

 The buying behavior of consumer for different brands of milk chocolate bars
is affected by various factors like price, taste, packaging, brand etc.

47
SUGGESTIONS

48
 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.

49
Annexure

Questionnaire

On

50
 “Buying behavior of consumer for Milk chocolate bar
of age group 18-25
Name of the consumer ____________________________________

Age ____________________________________

Sex ____________________________________

Income ________________________________

Q1. Which companies’ chocolate do you prefer to purchase?

Cadbury Amul

Nestle

Q2. What is your pattern of consumption?

More than one per day 3-4 Chocolate per week

Weekly Rarely

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

51
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. Which mode of advertisement influence you most to buy a particular

Chocolate? Please tick any one.

Magazine Newspaper

Radio Television

Other

Q7. Which reference group influence you most to buy a particular chocolate?
Please tick any one.

Friends Family Retailer

Celebrity Other

Q8? Is it right to say that the taste of Chocolate should be different for different
age groups?

Yes No

52
Q9 How much you are satisfied with the present brand of chocolate which you
often purchase?

Highly Satisfied Satisfy

Undecided Dissatisfied

Highly Dissatisfied

Q10? Doyou agree with the statement that packaging of Chocolates helps in sales
promotion?

Yes No

Q11. What is your suggestion for the improvement of your preferred chocolate
Brand?

__________________________________________________________________

BIBLOGRAPHY

BOOKS

53
 • Marketing Management, Kotler Philip
• Marketing Research, Donald T.S
• Research Methodology, C.R kothari
• Consumer Behaviour, Della A.J
• Consumer Behaviour, Schiffman & Kanauk

MAGAZINES & JOUNALS

• Advertising Express, September 2006,Traditional Mass Media, By

K.Suresh
• Indian Journal of Marketing, March 2006, Article By Dr.Banusmathy
• Business World, November 2006
• Business India, Advertising
• Business Today, Trends

WEBSITES
www.amul.com
www.nestle.com
www.cadburyindia.com
www.consumerpsychology.com
www.altavist.com

www.google.com

54