INTRODUCTION

The first recorded evidence of chocolate as a food product goes back to Pre-Columbian
Mexico. The Mayans and Aztecs were known to make a drink called "Xocoatll from the beans of
the cocoa tree. In 1528, the conquering Spaniards returned to Spain with chocolate still
consumed as a beverage. A similar chocolate drink was brought to a royal wedding in France in
1615, and England welcomed chocolate in 1662. To this point "chocolate" as we spell it today,
had been spelled variously as "chocalatall, "jocolatte", "jacolatte", and "chockelet.11
In 1847, Fry & Sons in England introduced the first "eating chocolate," but did not attract
much attention due to its bitter taste. In 1874, Daniel Peter, a famed Swiss chocolateer,
experimented with various mixtures in an effort to balance chocolates rough flavor, and
eventually stumbled upon that abundant product -- milk. This changed everything and
chocolate's acceptance after that was quick and

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

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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 companys 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
Hersheys 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. Cadbury was controversially taken by Kraft
co.ltd in February 2010.Cadburys market share in India is 79%

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.

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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 worlds leading maker of chocolate. For three decades the company called Peter,
Cailler, Kohler relied on Nestle for milk and marketing expertise. In 1929, the almost inevitable
merge took place as Nestle acquired Peter, Cailler, and Kohler. Nestle chocolates has increased
its sales tremendously in India. Latest news for nestle chocolates India is,that it will not only be
undertaking selective price hikes, but will also be reducing the weight for its chocolate products
in order to combat rising raw material costs, reportsThe Economic Times .
According to company sources, the weight of Nestle's Kit Kat, Milkybar and Munch chocolate
bars will be reduced by around 5-7%, which implies a price hike of around 7%. Sources expect
this measure to pan out by April end, the report adds.
Although Nestle's milk product division generates the majority of its revenues, chocolates
generate nearly 15% of sales for the company.
Nestle's move follows market leader, Cadbury India's Rs 5 (9%) price hike of its flagship brand,
Cadbury Dairy Milk to Rs 60, the report says.Nestles market share in India is 14%.

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

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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, GCMMFs 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, Amuls topical ads for its butter products are
posted on its Web site, along with recipes fore Indian dishes featuring Amul products. Archives
of hundreds of topicals dating back to 1979 are available on the site. The topicals have also been
carried every day on the Indian World home page.amul chocolates market share in India is 5%.

CONSUMER BEHAVIOUR
It is a segment or part of human behaviour. Human behaviour refers to the total process whereby
the individual interacts with the environment. Every thought, feeling, or action that we have as
individuals is part of human behaviour.

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Definition:Consumer behaviour is the study of how individuals, groups and organizations select,
buy and dispose of goods, services, ideas or experiences to satisfy their needs and wants.

OBJECTIVE

1.

To study the brand preferences of consumers from the three brands of

chocolates i.e.

Amul, Cadbury, Nestle available in the market.

2.

To find the extent of brand loyalty of consumers that exists among different chocolate
brands.

3.

To study the influence of various aspects on buying behavior.

4.

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

5.

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

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RESEARCH METHODOLOGY

Research methodology in a way is a written game plan for conducting research. Research
methodology has many dimensions. It includes not only the research methods but also considers
the logic behind the methods used in the context of the study and complains why only a
particular method of technique has been used. It also helps to understand the assumption
underlying various techniques and the criteria by which they can decide that certain technique
will be applicable to certain problems and other will not. Therefore in order to solve a research
problem, it is necessary to design a research methodology for the problem as the some may differ
from problem to problem.
This chapter focuses on the various techniques, methods and assumptions used in this
study. It sheds light on the research problem, objectives of the study, and also its limitations. The
later part of the chapter explains the manner, in which the data is collected, classified, tabulated,
analyzed and interrupted so as to each to conclusive results.

The study is of diagnostic nature and thus the overall research design is going to be rigid.
The design should provide enough provision for protection against bias-ness and must maximize
reliability.

A) PROBLEM STATEMENT:Research work is management parlance is extremely important for a given close view of
the relatives of the real life business issues. For any management student who is striving to
perform outstandingly. It is of paramount importance that apart from theoretical knowledge he
must also gain some practical knowledge. Survey report deals specially with providing an
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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 Bhiwani Sample Survey Methods has been
employed through other methods are also important. This method is given prime significance in
modern research because of its extensive use to study the relationship of different factors,
attitudes and practices of society and to explore the problems that cannot be treated by
experimental methods.
To collect data, a number of techniques are employed under the sample survey method
i.e. questionnaire. The increasing use of questionnaire is probably due to increased emphasis by
social scientists on quantitative measurement to uniformly accumulated data.

a) Area of study
The area of the study is different Markets of Mohali in order to collect the Primary data from the
respondents.

b) Study area
Study area is Mohali

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

C) SELECTION OF SAMPLE:It becomes impossible to contact each and every individual of the population due to limitations
of essential resources like time and money. Therefore, the study is preferably allowed down to a
representation sample to make the study more manageable.
Keeping in the view the objectives and resource limitation of the study, 100 respondents were
considered.
Respondents

-100(Youths of age group 18-25)

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

D) SAMPLING PLAN:The following factors will be taken into consideration within the scope of sampling plan:

I) Sampling Unit: It defines the target population that will be sampled i.e. it answers who is
to be surveyed. In this study, the sampling unit is youth with in the age group of 18-25 years.

II Sampling Size: - It indicates the numbers of people to be surveyed. Though large samples
give more reliable results than small samples but due to constraints of time and money, the
sample size was restricted to 100 respondents.

Probability sampling can be of following types:

Simple random sampling

Stratified random sampling

Cluster (area) sample

In this case, stratified random sampling was done since the respondents will classified into well
defined classes or strata that were distinct from each other.

E) COLLECTION OF DATA:
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After the research problem has been defined and the research design has been chalked
out, the task of data collection begins. The data can be collected mainly through primary sources,
but it was supplement with secondary data.

I Primary data collection:

Primary data is the data which is collected through observation or direct communication with the
respondent in one form or another. These are several methods for primary data collection like
Observation Method, Interview Method, through schedules, through questionnaires and so on.
II Secondary data collection methods:
Secondary data is collected through

Magazines

Journals

Portals

Formation of Questionnaire
Quite often the questionnaire is considered as the heart of a survey operation. Hence it
should be carefully constructed. It is an investment that is widely used to collect various types of
data and consists of long lists of questions designed to collect any information. It has personally
been found that people are more frank in giving replies to a questionnaire than to an interview
schedule. Though being less expensive, it has certain limitations like incomplete entries and
erroneous responses. 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:

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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.

DATA ANALYSIS AND INTERPERTATION

Q1. Which companies chocolate do you prefer to purchase?
Brand Name

Percentage

Cadbury

40

Nestle

35

Amul

25

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As per shown in the Pie chart, the maximum market share is hold by Cadbury. And least share is
hold by Amul followed by Nestle. And this result is obtained from the response of customers
towards Questionnaire filled by them for the consumption of milk chocolate bars.

Q2. What is your pattern of consumption?

Pattern of consumption

Percentage of consumption

More than one per day

15

Daily one

25

3-4 chocolates per week

45

Weekly

10

Rarely

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

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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.

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Q3. Do you purchase the same chocolate every time?

Answer

Percentage

Yes

68

No

32

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 dont purchase the same chocolate every
time.

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Q4. If no, then while switch over to another brand of chocolate then what
factor you consider (tick any one)?
Factors
Price
Quality
Brand Name
Advt. and Ref. Group
Taste

Response
6
12
3
3
8

Percentage
18
38
9.5
9.5
25

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

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Q5. Which factor you consider the most while purchasing the chocolate?
Please tick any one.

Consumer's consideration

Percentage

Price

16

Taste

48

Brand

18

Packaging

Availability

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.

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Q6. Which mode of advertisement influence you most to buy a particular

Chocolate? Please tick any one.

Media

Percentage

Newspaper

22

Magazine

14

Radio

Television

54

Others(hoardings,banner,pamplets etc)

The buying behavior of consumers is also affected by the different type of advertisements. As
shown in the pie chart, the most influencing media is electronic media i.e. TV, and the second
most influencing factor is newspaper.

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

Percentage

Friends

55

Family

Retailers

Celebrity

39

Others

As shown in the pie chart, from reference group friends are the most influencing factor which
influence consumer to purchase a particular brand of milk chocolate. And this statement is
supported by 55% of consumers of milk chocolate bars. And the second most influencing factor
which influence customer to purchase a particular brand of milk chocolate bar are celebrities ,
and this statement is supported by 39% of consumers.

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8. Whether you check or consider manufacturing and expiry date while

buying any chocolate?
ANSWER

Percentage

YES

55

NO

45

Pie chart says that 55% of the consumer check or consider manufacturing and expiring date
while buying any chocolate. 45% of consumers dont go for that. This should be a matter of
concern

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

Satisfaction Level

Percentage

Highly satisfied

27

Satisfied

32

Undecided

21

Dissatisfied

12

Highly dissatisfied

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

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FINDINGS & CONCLUSION

The findings of the study of consumer buying behavior in chocolates states among all the three to
brands i.e. Cadbury, Nestle and Amul. The brand at first place is Cadbury, the Nestle (2nd) and
last is Amul. Among all these three Cadbury is having the largest market share i.e. 40, Nestle
35 and Amul 25. Among all these Brands Cadbury is the only company offering largest
number of brands in chocolates i.e. 6 (only for milk chocolate bars). As compared to Cadbury
Nestle Company is having 2 brands and Amul is with 4 brands of chocolates.
For 48% of the consumers the most important factor which is considered while purchasing
any milk chocolate bars is Taste of that chocolate. They give preference to other factors
also, but most important thing is taste.
The buying behavior of consumers is also affected by the different type of advertisements.
And the most influencing media is electronic media i.e. TV, and from reference group
friends are at most influencing position.
Quality is the most important factor which consumers consider while switching over to any
other brand of milk chocolate bars.
Consumers of Bhiwani are more attracted towards the foreign brands like Cadbury and
Nestle and demand that more number of foreign milk chocolate bars should be available in
the market, like some milk chocolate bars brands of Swiss and French chocolates. As this
thing shows that consumer of Bhiwani are more satisfied with the foreign brands and hence
demand more of it. But brands like Amul are not able to get proper place in the market in
spite that good advertisement is being done by Amul also.
68% of the consumers are brand loyal.
The buying behavior of consumer for different brands of milk chocolate bars is affected by
various factors like price, taste, packaging, brand etc.55% of the consumer check or
consider manufacturing and expiring date

while buying any chocolate. 45% of

consumers dont go for that. This should be a matter of concern.

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SUGGESTIONS
A detail study of the Consumers Buying Behavior of Age Group 18-25 For Milk
Chocolates Bars was done. Some important suggestions are as follows:
1.

The Indian company AMUL has to review its process so as to gain brand loyalty of the
consumers.

2.

The chocolates whose expiry dates goes off should be replaced at once and fresh stock
should be offered.

3.

The chocolate companies should think on the matter that why the consumers switch over
to the other brands.

4.

The chocolate companies should put more & more emphasis on the taste and quality of
the chocolate so as to gain brand loyalty.

5.

As factors other than TV and Newspaper are considered less so companies should use the
print and electronic media for advertisement in large extent.

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Questionnaire

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

Daily One

3-4 Chocolate per week

weekly

Rarely

Q3. Do you purchase same chocolate every time?

Yes

No

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Q4. If no, then while switch over to another brand of chocolate then what factor
you consider? Please tick any one.
Price
Name

Brand

Quality

Advert. 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
Retailer

Family
Other

Celebrity
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Q8. Whether you check or consider manufacturing and expiry date while buying
any chocolate?
Yes

No

Q9. How much you are satisfied with the present brand of chocolate which you
often purchase?
Highly Satisfied
Undecided

Satisfy
Dissatisfied

Highly Dissatisfied

Q10. What is your suggestion for the improvement of your preferred chocolate
Brand?
_______________________________________________________________

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BIBLOGRAPHY
BOOKS

Marketing Research, Donald T.S

Research Methodology, C.R kothari
Consumer Behaviour, Della A.J

MAGAZINES & JOUNALS

Advertising Express, September 2006,Traditional Mass Media, By K.Suresh

Business World, November 2006

Business Today, Trends

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

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