A

Research Project Report

ON“Buying Behavior of consumers of age group

18-25 for milk chocolate bars with special reference to:-

(A case study of Yamuna Nagar)

Submitted in the partial fulfillment for

the degree of Master of Business Administration

Session (2009-2011)

Under The Guidance Of: Submitted By :

Mrs. Anju Anand Balraj Saini

Department Of Management MBA 4rth Sem.

SIMT Roll No: 109007

Exam Roll No………..

1

Sarswati Institute of Management &Technology Kaithal

Kurukshetra University, Kurukshetra092543-291000172-5002920

Fax : 0172-4616994Mobile : 98767-38000

SARASWATI INSTITUTE OF MANAGEMENT & TECHNOLOGY

Teek, Distt. Kaithal-136027 (Haryana)Run by : Shiv Bhola Hi-Tech Education Society# 99, SECTOR 7, PANCHKULA (HARYANA)

Present Correspondence Address : Plot No. 994, Ind. Area, Phase-II, Chandigarh-160002, E-mail : sbht.educationsociety@yahoo.com

Ref. No. _______________ Dated _______________

To whomsoever it may concern

This is to certify that the Research Project of MBA entitled, “Buying Behavior of consumers

of age group 18-25 for milk chocolate bars with special reference to Cadbury, Nestle, &

Amul”, done by Mr. Balraj Saini, Roll No. 109007 is a benefited work carried out by him

under my guidance. The matter embodied in this project work has not been submitted in our

college earlier for award of any degree or diploma to the best of my knowledge and belief.

Mrs. Anju Anand Lecturer

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DECLARATION

I Balraj Saini Roll No. 109007, here by declare that this project report entitle “Buying

Behavior of consumers of age group 18-25 for milk chocolate bars with special reference

to Cadbury, Nestle & Amul ” has not been presented as a par of any other academic except to

get my MBA from Sarswati Institute of Management &Technology, Kaithal

(BALRAJ SAINI)

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ACKNOWLEDGEMENTS

In this present world of competition there is a race of existence in which those who are having

will to come forward will succeed. Project is a bridge between practical and theoretical

working, with this will I have joined the project. I really wish to express my gratitude towards

all those people who have helped me.

My project guide Mrs. ANJU ANAND (lecturer) who provided me her expert advise,

inspiration & moral support in spite of her busy schedule & assignments, has mainly provided

my understanding of this project. I am very grateful to her kindhearted approach &

encouragement, which helped me immensely in completion of this project report.

I take this opportunity to express my gratitude to Mr. K.K AGGARWAL (Director), for

his invaluable help & guidance throughout the course.

Last, but not the least, I say only this much that all are not to be mentioned but none is forgotten and I will like to extend my special thanks and gratitude to all my classmates who always encourage me in pursuit of excellence.

( BALRAJ SAINI )

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PREFACE

This project has been prepared, as a part of our MBA Program. This will also serve as basis

knowledge of “Buying Behavior of consumers of age group 18-25 for milk chocolate bars

with special reference to Cadbury, Nestle, Amul.” The Project Report is accompanied with

number of Formats, charts & flow diagram, which will be helpful in understanding the subject

matter. We are thankful to Mrs. ANJU ANAND ; Lastly we are grateful to all the seen and

unseen hands that have been kind enough to help me in preparing the above project report from

the beginning to end.

( BALRAJ SAINI )

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Contents Particulars Page No.

Introduction to the study 01

Consumer Behavior 16

Research Methodology 22

A. Problem Statement 25 B. Research Design 26

Area of Study Objective of the Study

C. Sampling Design 27 Sampling Unit Sample Size Sampling Techniques Constraints of the study

D. Data Collection 28 Data Collection Methods Data Collection Techniques

E. Statistical & Analytical Tools 29

Analysis & Interpretation 32

Findings 42

Limitation 45

Suggestions 47

Conclusions 49

Bibliography 51

Questionnaire 53

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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 17 th 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 chocolateTo 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.

2. A beverage or confection made from this.

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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.

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HISTORY OF CHOCOLATE

The discovery of cocoa was only a first step in the direction of chocolate. The

Mayas were the first to cultivate the cocoa bean for the fruits it yielded. They

used the beans as an ingredient in their favorite chocolate drink ‘xocotlatl’.

Legend suggests that the first beans came out of paradise and lent wisdom and

power to the person that ate them. For obvious reasons, the use of cocoa was kept

to a minimum by the emperors.

Before the Spanish explorers discovered the New World, chocolates and other

“exotic” foods were totally unknown in Europe. Columbus was the first European

to become acquainted with cocoa, but he wasn’t exactly impressed.

During one of his conquest in the New World he met the Aztecs. For many

generations, they drank an infusion of grilled seeds and spices. This mixture

tasted disgusting and it also contained cocoa beans. The Aztecs adopted the ides

of cocoa consumption from the Mayas.

However the conquistadors pizzaro and, in particular, Cortes did show interest in

the bean. Fernando Cortes reached the east coast of Mexico in 1519. as an

honored guest of Montezuma (Aztec emperor and inveterate chocolate fanatic) he

was offered xocotlatl –a small portion of aromatic chocolate drink mixed 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.

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PREFACE

The customer is king. Finally ten years after the liberalization of India’s

economy began. The market place has, suddenly become tightening competitive.

Not only have new players stormed into the country, there are more brands

available then ever before in every segment of every market. The customer today

buys only that which meets his/her every desire. This demands more intimate

understanding of the customer by the “Smart Companies” the study has been

divided into six parts.

First part contains briefly the CHOCOLATES, history of chocolates, along with

the development of passion for chocolates.

Second part presents an overview of evolution of chocolates, chocolate industry-

growth and competition in various categories. Major players in this industry.

Third and Forth part includes a brief profile about the consumer behavior &

Research Methodology for the study. This part describes the term consumer

behavior and it’s importance.

Part five deals with the Analysis & Discussion. Important findings have been

discussed at last for better understanding.

Lastly, Part six namely “Findings & Recommendation” highlights the major

findings during the course of the study. Accordingly, recommendations have

been made.

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INTRODUCTION

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

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a chocolate beverage, which also killed the unwritten confectioner

who shared in the consumption. Through there is no proof, the

Jesuits are suspected to have arranged his demise. The pope had

been in opposition to the Jesuits, and they were known chocolate

drinkers. So the conclusion, while not provable, is not unfounded.

1819 Francois Louis Cailler opened a chocolate factory on lake Geneva

near Vevey. He used machinery he had developed himself, making

him a pioneer in the evolution of Swiss chocolate.

1828 Chocolate maker and chemist Coenraad Van Houten developed the

process now known as “Dutching.” His patented invention involved

the removal of close to half of the cocoa butter from chocolate liquor

through the use of hydraulic pressure. The removal of the cocoa

butter resulted in a commensurate decrease in fat content. Instead of

fifty percent, the hard cake that was let from this process had a fat

content of only Twenty-Five percent. The cake could then be

crushed into a powder. The use of alkaline salt allowed for easier

mixing with warm water. It also made the color darker and had the

pleasing affect of a less bitter taste. This invention would be the key

in the development of chocolate as a confection.

1847 Joseph Fry was a Quaker who began manufacturing chocolate under

the name of Joseph Fry & Sons. While the original Joseph Fry left

the company to become a type founder, his sons continued the

business. One of his sons, another Joseph Fry, purchased a Watts

steam engine in 1789 to 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 13

molds. The effect of this was a chocolate bar that gathered as much

attention as chocolate beverages had.

1849 Ghirardelli, an Italian native, planned early on having a chocolate

business. However, he traveled first to Uruguay and then to Peru

before setting in California in 1849. Though he had been attracted

by the Gold Rush, he soon learned that there was more reliable profit

to be had selling tents to other gold miners than in actual mining. He

used the money he saved and started the Ghirardelli chocolate

factory, which is still located in San Francisco.

1849-1986

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 renown 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 14

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 continue

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 15

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.

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.”

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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.

Major Players in the Market

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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 player in the chocolate and sugar confectionary segment. The parent has

a 51 percent stake in the company. For the year-ended December 1999, close to

76 percent of the sales turnover was derived from chocolate followed by malted

foods (22 percent).

Cadbury (India) has for long been the leading player in the chocolate industry. It

is virtually a household name with leading brands such as Five Star and Dairy

Milk. Of late, the company has been flooding the market with new launches.

Among the successes of recent years are Perk and Picnic.

In the malted food segmented, Bournvita is one among the popular brands.

However, the health- drink segment has failed to lead support to the company’s

bottom-line in the recent past. Volumes in Bournvita have been deciding for

some time. However, this is not likely to be a drag on the profitability.

Cadbury (India) has levered on its marketing strengths and product range.

Competition may stem from players such as nestle in the near term. Apart from

this, other new players such as Mars and Hershey’s may have an impact on the

level of competition. However, the reduction in the excise duty on malted drinks

and chocolates and the lower import duties on cocoa is likely to have a positive

impact on the cost-structure of the firm.

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The earnings performance of 2000 first quarter was impressive. Sales revenue

rose 20 per cent to Rs. 139.34 crores compared to the corresponding previous

period. Operating margins declined marginally from 16.4 per cent to 15.7 per

cent. Post-tax earnings rose a 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.

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NESTLE

The story of chocolate began in the new World with the Mayans, who drank a

dark brew called cacahuaquchtl. Later, the Aztecs consumed chacahoua and used

the cocoa bean for currency. In 1523, they offered cocoa beans to Cortez, who

introduced chocolate to the world, where it swiftly became a favorite food among

the rich and noble of Europe.

From the beginning, tuning raw, bitter cocoa beans into what one 17 th 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.

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AMUL

AMUL CHOCOLATE is made from Sugar, Cocoa Butter, Milk Solids,

Chocolate mass Composition Milk Fat 2% Sugar 55% Total fat 32.33% (Milk fat

+ Cocoa Fat) Cocoa Solids 7.5% Milk Solids 20% Product Specifications: Meets

all requirements under the PFA for boiled sugar confectionary. “A gift foe

someone you love”. Amul Chocolate has chosen the phrase “A gift of someone

for love” to market their chocolate products.

Today, GCMMF’s Amul brand of milk products receives business queries from

dozens of countries, ranging fron the U.S. and the Netherlands to Singapore and

New Zealand-thanks to an innovative marketing campaign on the World Wide

Web.

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.

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INTRODUCTION

The term consumer behavior refers to the behavior that consumers display

in searching for, purchasing, using, evaluating and disposing of products and

services that they expect will satisfy their needs. The study of consumer behavior

is the study of how individuals make decisions to spend their available re- source

(time, money, effort) on consumption related items. It includes the study of what

they buy, why they buy it, when they buy it, where they buy it, how often they

buy it and how often they use it.

Information about the pattern of consumption in various segments of

society and dynamics of consumer behavior are central to the understanding for

developing new concepts in marketing. The essence of modern marketing

concept is that all elements of business should be geared towards identifying and

satisfying the needs of the consumers.

Decision Making Process

The consumer’s decision to purchase or reject a product is a moments of

final truth for marketer. It signifies whether the marketing strategy has been wise,

insightful, and effective, or whether it was poorly planned and missed the mark.

Thus, marketers are particularly interested in consumer’s decision-making

process. We would be discussing a simple model of consumer decision making

that emotional consumer. The modal, has three major components:

1) Inputs

2) Process

3) Output

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Product Price Place Promotion

Firm’s Marketing Efforts

Psychological Factors

Perception Motivation Attitude Learning Personality

Family Reference Group Other non-commercial

influence Social class Culture and sub-

culture influences

Socio culture Environment

Purchase Trial Repurchase

Post purchase evaluation

Need recognition Information search Valuation

alternatives

Input

Process

Output

CONSUMER DECISION MAKING PROCESSExternal influences

Consumer Decision Making

Post Purchase Behavior

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Experience

INPUTS

The input component draws on external influences that serve as sources of

information about a particular product and influence a consumer’s product-

related values and behavior. Chief among these input factors are the marketing –

mix activities of organizations that attempt to communicate the benefits of their

products and services to their potential customer, and the no marketing socio-

cultural influences, which, when internalized, affects the consumer’s purchase

decision.

PROCESS

The process component of the modal is concerned with how consumers

make decisions. The psychological field represents. The internal influences

(motivation, perception, learning, personality, and attitudes) that effect the

consumer’s decision making processes.

Prepurchase Activity

After the problem is identified, the buyer indulges in prepurchase activity. It is

under stood that need is a father of a deed.

There generally remains a time lag when a person thinks to buy and the

actual incidence of buying. During this time, the person is energized and is likely

to be influenced by various factors. Need arousal drives the consumer to collect

information about the required product. He first indulges in internal search, scans

his psychological field so as to recollect of retrieve any information or past

experience related to particular need. His psychological field comprises of his

past learning. Perception, personality and past experience. If he is not satisfied he

then goes in for external search and looks for various sources of information. The

degree of perceived risk can also influence this stage of the decision process. In

25

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.

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Purchase Behavior

Consumer make two types of purchase and repeat purchase. If a consumer

purchase a product (or brand) for the first time, and buys a smaller quantity than

usual, this purchase would be considered a trail. Thus, a trail is the exploratory

phase of purchase behavior in which consumers attempt to evaluate a product

through direct use.

If the new brand is established product category (cola, chewing gum,

candies) is found by trail to be more satisfactory or better than other brands,

consumers are likely to repeat the purchase, Repeat purchase behavior is closely

related to the concept of brand loyalty, which firms try to encourage because it

contributes to greater stability in the marketplace.

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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.

HYPOTHESIS

29

Ho= Various factors (image of product, paying capacity, price of product, packaging of

product brand awareness, influence of advertisement) effect the consumer buying behavior

for milk chocolates bar.

H1= NO effect of various factors (image of product, paying capacity, price of

product, packaging of product, brand awareness, influence of advertisement) on

consumer purchase in milk chocolate bars.

A) PROBLEM STATEMENT

30

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 Yamuna Nagar Sample

Survey Methods has been employed through other methods are also important.

This method is given prime significance in modern research because of its

extensive use to study the relationship of different factors, attitudes and practices

of society and to explore the problems that cannot be treated by experimental

methods.

To collect data, a number of techniques are employed under the sample

survey method i.e. questionnaire. The increasing use of questionnaire is probably

due to increased emphasis by social scientists on quantitative measurement to

uniformly accumulated data.

A) Area of study31

The area of the study is different Markets of Yamuna Nagar in order to collect

the Primary data from the respondents.

B) Objective1. 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. These

factors are:-

Price

Taste

Brand name

Packaging

4. To study the usage & brand awareness of chocolates product in among the

residents of Yamuna Nagar.

5. To study the consumer preference for different chocolate products.

Study area : Yamuna Nagar.

Target Segment : Consumers of Milk chocolates bars of age group 18-25

C) SELECTION OF SAMPLE32

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 18-35)

The selected sample is representative of the population and is accurate and

practicable.

D) SAMPLING PLAN

The following factors will be taken into consideration within the scope of

sampling plan:

I Sampling Unit It defines the target population that will be sampled i.e.

it answers who is to be surveyed. In this study, the sampling unit is youth with in

the age group of 18-25 years.

II Sampling Size It indicates the numbers of people to be surveyed.

Though large samples give more reliable results than small samples but due to

constraints of time and money, the sample size was restricted to 100 respondents.

Probability sampling can be of following types

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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

Portals

F) STATISTICAL & ANALYTICAL TOOLS

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CHI – SQUARE TEST:- For measuring the affect of price on

purchase of milk chocolate bars of different brands.

V= (r-1)*(c-1)

Expected Frequency = Row Total * Column Total / Total frequency

If , Table Value > Calculated Value, Hypothesis is accepted.

GROUP CORRELATION:- For measuring the correlation between

various influencing factors like price, taste, packaging, brand name

etc. and buying behavior of consumers for milk chocolate bars the

Group Correlation is used and the formula is:

r = Nfdxdy - fdxfdy

Nfdx2-(fdx)2 Nfdy2-(fdy)2

T-TEST (Student’s Distribution):- for measuring the

consumption level of consumers of milk chocolate bars of

three brands.

S=√ ∑X2

n-1

If , Table Value > Calculated Value, Hypothesis is accepted.

LIKERT SCALE:- For the ranking of milk chocolate bars according to consumer preferences

Analytical tools:- Like Pie graphs etc.

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Formation of Questionnaire

Quite often the questionnaire is considered as the heart of a survey

operation. Hence it should be carefully constructed. It is an investment that is

widely used to collect various types of data and consists of long lists of questions

designed to collect any information. It has personally been found that people are

more frank in giving replies to a questionnaire than to an interview schedule.

Though being less expensive, it has certain limitations like incomplete entries and

erroneous responses. But the educational qualification of the respondents is an

additional factor which renders this technique the most relied upon.

Formation of a good questionnaire involves intensive thinking and

deliberation of the problem with predetermined objective and aims properly

placed in the questionnaires.

The questionnaire framed for the purpose of the study consists of a

limited number of questions placed in logical order. So, that the objective of the

question is clear to the respondents. All the questions are centered on the problem

keeping in the mind. The questions were both open and close ended as well as

multiple choices.

Analysis of Data

Data, after collection, has to be analyzed in accordance will the outline laid

for the time of developing the research plan. The term analysis refers to the

computation of certain measures along with searching for patterns of relationship

that exist among data groups.

CONSTRAINT OF THE STUDY

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There are following constraints of the study which can be explained as:-

1) The time of research was short due to which many fact has been left

untouched.

2) The Area undertaken in research in Yamuna Nagar 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. Which 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.

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ANALYSIS AND INTERPRETATION

Q1. Which companies’ chocolate do you purchase? Please rank them

according to your preference.

Brand Name Percentage

Cadbury 40

Nestle 35

Amul 25

40%

35%

25%Cadbury

Nestle

Amul

As per shown in the Pie chart, the maximum market share is hold by Cadbury.

And least share is hold by Amul followed by Nestle. And this result is obtained

from the response of customers towards Questionnaire filled by them for the

consumption of milk chocolate bars.

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Q2. What is your pattern of consumption?

Pattern of consumption Percentage of consumption

More than one per day 15

Daily one 25

3-4 chocolates per week 45

Weekely 10

Rarely 5

As shown in Pie chart, most of the consumers consume milk chocolate bars as 3-

4 per week, which represent 45% of the total number of surveyed consumers.

And second most percentage of consumers consumes milk chocolate bars are of

daily one. As calculated by Tool Of T-Test for every brand of milk chocolate

bars, in which the hypothesis is taken that more than 60% of population

consumes milk chocolate bars more than one a week. And in these three brands

i.e. Cadbury, Nestle and Amul the result was positive

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Percentage of consumption

15%

25%45%

10% 5%

More than oneper dayDaily one

3-4 chocolatesper weekWeekely

Rarely

Q3. Which factor you consider the most while purchasing the chocolate?

Consumer's consideration Percentage

Price 16

Taste 48

Brand 18

Packaging 9

Other 9

Percentage

16%

48%

18%

9% 9%

Price

Taste

Brand

Packaging

Other

Most of the consumer of milk chocolate bars says 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 lest interested factor

is Packaging. As analyzed with the help of Correlation Tool in which the

correlation between different factors that influence consumer to purchase a

particular brand of milk chocolate bar is +.132, which shows that there is

positive correlation between different influencing factors and buying behavior of

consumers.

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Q4. What extent of price tag influences your purchase decision of chocolate?

Extent of influence Percentage

High 13

High average 23

Average 27

Low average 19

Low average 18

Percentage

13%

23%

27%

19%

18%

High

High average

Average

Low average

Low average

Shown by the Pie chart, price has an influencing effect on the purchasing

behavior of consumers for milk chocolate bars, as 23% and 27 % of consumers

lies in high average and average parameter. And to prove the same Chi-Square

Test has been used,to prove the same observed values are compared with the

expected once. And calculated chi-square is as:-

2 Calculated = 0.437

But the calculate value was lesser than table value. Hence null hypothesis is

selected that change in price has influencing effect on buying behavior of

consumer for milk chocolate bars.

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Q5. Which reference group influence you most to buy a particular chocolate?

Reference Groups Percentage

Friends 55

Family 3

Retailers 1

Celebrity 39

Others 2

As shown in the bar graph, 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.

Q6. You consider manufacturing and expiry date while buying any chocolate________

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Consumer's View Percentage

Strongly Agree 28

Agree 29

Neutral 37

Disagree 4

Strongly Agree 2

Consideration on manufacturing and Expiry date

28%

29%

37%

4%2%Strongly Agree

Agree

Neutral

Disagree

Strongly Agree

As shown in Pie chart, about 37% of consumers are neutral while considering the

manufacturing and expiry date of milk chocolate bars. But if talk about those who

strongly agree on the consideration of manufacturing and expiry date represented

by 28% of population and 29% of population represent those who are agree on

the statement that they consider manufacturing and expiry date while purchasing

any milk chocolate bar.

By applying Chi-Square……

OBSERVED

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Price Influence on Chocolate purchase

CHOCOLATE

BRANDS

High High

Avg.

Average Avg.

Low

Low

Cadbury 5 9 11 8 7

Nestle 5 8 9 7 6

Amul 3 6 7 4 5

Total 13 23 27 19 18

EXPECTED

Price Influence on Chocolate purchase

CTV

Brand

High High Avg. Average Avg. Low Low

Cadbury 5.2 9.2 10.8 7.6 7.2

Nestle 4.5 8.05 9.45 6.65 6.3

Amul 3.25 5.75 6.75 4.75 4.5

Total 13 23 27 19 18

Observed Value

Expected value(O-E)2 (O-E)2/E

5 5.2.01 .01

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5 4.5.25 .06

3 3.25.125 .04

9 9.2.04 .004

8 8.05.025 .003

6 5.75.125 .022

11 10.8.04 .004

9 9.45.2025 .02

7 6.75.125 .02

8 7.6.16 .02

7 6.65.1225 .02

4 4.75.5625 .12

7 7.2.04 .01

6 6.3.09 .014

5 4.5.25 .04

2 Calculated = 0.437

V = (r-1) (c-1) = (5-1) (3-1) = 8

for V = 8 2 0.05 table value = 15.58

So, 2 0.05 table value greater than 2 calculated value so hypothesis is

accepted and there is positive relation between change in price level and

purchasing decision.

Let us take the hypothesis that customer are satisfied with the present brands of

chocolate in Yamuna Nagar.

By applying Likert Scale……….

Cadbury Nestle Amul

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Fully satisfied 11x5 = 55 10x5 = 50 7x5 = 35

Satisfied 13x4 = 25 11x4 = 44 8x4 = 32

Neutral 8x3 = 24 6x3 = 18 5x3 = 15

Dissatisfied 5 x 2 = 10 5x2 = 10 3x2 = 6

Fully dissatisfied 3 x1 = 3 3x1= 3 2x1 = 2

144 125 90

So as per the scale obtained the ranking of various brands of chocolate is as under

:-

= Rank 1

= Rank 2

= Rank 3

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FINDINGS

The findings of the study of consumer are buying behavior in chocolates states

among all the three to brands i.e. Cadbury, Nestle and Amul. The brand at first

place is Cadbury, the Nestle (2nd) and last is Amul. Among all these three

Cadbury is having the largest market share i.e. 40, Nestle 35 and Amul 25.

Among all these Brands Cadbury is the only company offering largest number of

brands in chocolates i.e. 6 (only for milk chocolate bars). As compared to

Cadbury Nestle Company is having 2 brands and Amul is with 4 brands of

chocolates.

The buying behavior of consumer for different brands of milk chocolate

bars is effected by various factors like price, taste, packaging, brand etc. as

shown in Analysis and Interpretation part, in the form of group correlation.

With the help of t-test it has also been proved that more than 60% of

consumers consume milk chocolate bars more than once in a week. It has

been calculated for all the three brands separately which has been taken in

the study.

If there will be change in price level of milk chocolate bars, then it will

affect the buying behavior of consumers and this finding has been proved

with the help of Chi-Square Test (2).

The most important factor which consumers consider 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, and

from reference group friends are at most influencing position.

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Quality is the most important factor which consumers consider while

switching over to any other brand of milk chocolate bars.

Consumers of Yamuna Nagar are more attracted towards the foreign

brands like Cadbury and Nestle and demand that more number of foreign

milk chocolate bars should be available in the market, like some milk

chocolate bars brands of Swiss and French chocolates. As this thing shows

that consumer of Yamuna Nagar 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.

One another finding of the research is that consumers of milk chocolate

bars of Yamuna Nagar are quite hesitant towards the use of unfamiliar

brands, whose advertisement they do not see on different type medias.

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51

LIMITATION

1. The time of research was short due to which many fact has been left

untouched.

2. The Area undertaken in research in Yamuna Nagar 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. Which 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.

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SUGGESTIONS

A detail study of the “Consumer’s Buying Behavior of Age Group 18-25

For Milk Chocolates Bars” was done. Some important suggestions are as

follows:

1. Dealers should keep chocolates in cold storage in summers, and try to save

chocolates from sun light as they melt in hot place, which will ultimately

affect the buying behavior of consumer if he/she not feel satisfied.

2. The chocolates whose expiry dates goes off should be replaced at once and

fresh stock should be offered.

3. The retailers and distributors must be provided “Dispensers” and

company’s freezers or defreeze for storing chocolates, so that they can

offer good quality chocolates to consumers.

4. In Yamuna Nagar there is a scarcity of foreign chocolates. Here some of

customers are ready to pay premium prices but due to non availability they

have to satisfy with available brands.

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Conclusion

Every research activity ends with some conclusion and same happens with this

report also. By analyzing the collected data the conclusion which is arrived is as

follows:

Foreign Brands like Cadbury and Nestle has an edge over Indian brand like

Amul. Which is calculate as with the help Likert scale And the Value

comes out for Cadbury brand is 144 . But if we talk about Nestle Brand the

value comes out is 125. And for Amul this value comes out to be 90.

Which grades foreign brands to be Higher as compare to Indian brand of

milk chocolate bar.

Another conclusion of the study is that change in price has a substantial

effect on the buying behavior of consumer for milk chocolate bars as the

calculated value in Chi-Square test was .437and the table value comes out

to be 15.58 which shows that calculated value is lesser than table value,

hence the null hypothesis is selected that there is positive relation between

change in price level and purchasing decision of the consumers for milk

chocolate bars.

Different factors like Price, Taste , Brand Name , Packaging have an influencing

effect on the buying behavior of consumers for milk chocolate bars as shown

with the help of Group Correlation tool in which the correlation comes out to be

Positive.

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BIBLOGRAPHY

BOOKS

Marketing Management -Kotler Philip (1st edition reprint)o Chapter 7, Page 183

Marketing Research – Donald T.S (6th edition), Page 49 Marketing Research – Beri G.C (3rd edition), Page 79 Marketing Research – Boyd H.W (7th edition) Research Methods – Donald C.R (8th edition), Page 120 Basic Marketing – Pereaurt W.D (2nd edition), Page 450 Consumer Behaviour – Della A.J (4th edition), Page 15 Consumer Behaviour – Gupta S.L (2nd edition), Page 144 Consumer Behaviour – Schiffman & Kanauk (3rd edition) , Page 306

MAGAZINES & JOUNALS

Advertising Express- February 2006, Traditional Mass Media, By K.Suresh, Page 35

Marketing Mastermind – March 2006, Advertising Reaction ,By Barada Prasad Panigrhy, Research Associate , ICFAI Centre, Page 36

Indian Journal of Marketing – March 2006, Article By Dr.Banusmathy, Page 31

Business World – April 24,2006 , Page 8 Business India – Advertising , April 23,2006 Business Today – Trends, April 23,2006 Synergy - Article By Mittal Alok, January 2006,Page 74-85 Business Research – June 2005, Page 31

Websites

www.amul.com

www.nestle.com

www.cadburyindia.com

www.consumerpsychology.com

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QuestionnaireOn

“Buying behavior of consumer for Milk chocolate bar of age group 18-25

With special reference to 3 companies i.e.

Cadbury, Nestle and Amul”

Q. Do you like chocolate ?

Q1. Which companies’ chocolate do you purchase? Please rank them according to your preference.

Cadbury Nestle Amul RANK 1

RANK 2

RANK 3 RANK 4 RANK 5

Q2. What is your pattern of consumption?

More than one per day Daily One

3-4 Chocolate per week

Weekly Rarely

Q3. You purchase same chocolate every time…

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Name of the consumer ____________________________________

Age ____________________________________

Sex ____________________________________

Strongly Agree Agree

Neutral

Disagree Strongly Disagree

Q4. Which factor you consider the most while purchasing the chocolate?

Price Taste

Brand Packaging

Other

Q5. What extent of price tag influences your purchase decision of chocolate?

High High Average Average

Low Average Low

Q6. Which mode of advertisement influence you most to buy a particular chocolate? Magazine _______ Newspaper _______ Radio _______ Television _______ Other _______

Q7. Which reference group influence you most to buy a particular chocolate? Friends _______

Family _______ Retailer _______ Celebrity _______

Other _______

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Q8. You consider manufacturing and expiry date while buying any chocolate________

Strongly agree Agree

Neutral

Disagree Strongly Disagree

Q9. If you switch over to another brand of chocolate then what factor you consider?

Price Quality Brand Name

Advertisement and Reference group Taste

Q.10 What quality of chocolate attracts you ?

Quantity of sugar. Chocolate Flavor

Quantity of Milk.

Q11. Are you satisfy with the present brand of chocolate in Yamuna Nagar_______

Strongly Satisfy Satisfy

Neutral

Dissatisfy Strongly Dissatisfy

Q12. What is your suggestion for the improvement of your preferred chocolate brand?

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