A

RESEARCH 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 toKurukshetra University, Kurukshetra

In partial fulfillment of the requirementfor the degree of

Master of Business Administration (M.B.A)

Session 2004-2006

Contents (Index)Page No.

Introduction to 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 Constraints of the study

E. Statistical & Analytical Tools

Analysis & Interpretation

Findings

Conclusions

Suggestions

Annexure

Questionnaire Bibliography

AcknowledgementPreservation, inspiration and motivation have always played a key role in the success of any venture. In the present world of cut throat competition project is likely a bridge between theoretical and practical working, willingly I have prepared this particular project.

First of all I would like to thank the supreme power, the almighty God who is obviously the one who has always directed me to work on the right path of my life. With his grace this project could become a reality.

I feel highly delighted with the way my dissertation report on topic

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

special reference to:-

“(A case study of Yamuna Nagar)

Any accomplishment requires the effort of many people and this work is not different. Firstly, I would like to extend my sincere thanks to Dr. Vikas Daryal (Assistant Professor, TIMT) for his able guidance, regular counseling, keen interest and constant encouragement, without this the project would not have a successful end. I am highly thankful to him for his helpful attitude, regular coaching and inspiration.

I sincerely thank to all the faculty members and the staff associated for their support given to me time to time. Also, I would like to thank to all my friends and family members for their support given to me time to time. I don’t have words to express my thanks, but still my heart is full of gratitude for the favors received by me from the every person.

(Hitesh Bhalla)

INTRODUCTION TO THE STUDY

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, as

with vanilla.

2. A beverage or confection made from this.

3. Dark brown.

4. A divine substance inspiring passion in those who consume it.

Origin of chocolate

The word chocolate comes from the Mayan word xocoatl, and the word

‘cocoa’ from the Aztec cacahuatl. In Mexico, the beverage was called

chocolath, from lath (water) and choco. Supposedly the Spaniard found the

Mexican word har to pronounce and called it cacao. Chocolath, chocolath,

chocolath. Puff puff. See? I did it! (But let’s stick to cocoa) *LoI*

From cocoa to chocolate

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.

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.

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.

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 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 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 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 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.” 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

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.

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.

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.

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.

Consumer Behavior

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

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

Experience

INPUTS

The input component draws on external influences that serve as

sources of information about a particular product and influence a consumer’s

product-related values and behavior. Chief among these input factors are the

marketing – mix activities of organizations that attempt to communicate the

benefits of their products and services to their potential customer, and the no

marketing socio-cultural influences, which, when internalized, affects the

consumer’s purchase decision.

PROCESS

The process component of the modal is concerned with how

consumers make decisions. The psychological field represents. The internal

influences (motivation, perception, learning, personality, and attitudes) that

effect the consumer’s decision making processes.

Prepurchase Activity: After the problem is identified, the buyer indulges in

prepurchase activity. It is under stood that need is a father of a deed.

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

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

is likely to be influenced by various factors. Need arousal drives the

consumer to collect information about the required product. He first indulges

in internal search, scans his psychological field so as to recollect of retrieve

any information or past experience related to particular need. His

psychological field comprises of his past learning. Perception, personality

and past experience. If he is not satisfied he then goes in for external search

and looks for various sources of information. The degree of perceived risk

can also influence this stage of the decision process. In high – risk situation

they are likely to engage in complex information search and evaluation

tactics.

Of key interest to marketer are the various sources of information that

the consumer will return to and the relative influence that they will have on

his buying behavior.

Evaluation of Alternatives: when evaluating potential alternatives

consumers tend to use two types of information:

1. A “list” of brands from which they plan to make their selection (the

evoked set), and

2. The criteria they will use to evaluate each brand.

The criteria consumers use to evaluate the brands that constitute their

evoked sets usually are expressed in terms of important product

attributes. Consumers use certain procedures or rules to facilitate a

choice among multi – attribute objects. Consumers decision rules have

been broadly classified into two major categories compensatory and

non compensatory decision rules.

An understanding of which decision rules consumer apply in

selecting a particular service or product is useful to marketers

concerned with formulating a promotional programme.

Output

The output portion of consumer decision – marking model concerns

two closely associated kinds of post decision activity. Purchase behavior and

post purchase evaluation. The objective of both activities is to increase the

consumer’s satisfaction with his/her purchase.

Purchase Behavior: Consumer make two types of purchase and repeat

purchase. If a consumer purchase a product (or brand) for the first time, and

buys a smaller quantity than usual, this purchase would be considered a trail.

Thus, a trail is the exploratory phase of purchase behavior in which

consumers attempt to evaluate a product through direct use.

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

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

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

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

because it contributes to greater stability in the marketplace.

Research

Methodology

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.

HYPOTHESIS:-

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:-

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 study:-

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

collect the Primary data from the respondents.

B) 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. 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 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 18-35)

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:

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

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.

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. Data presented in raw

state appear unrecognized and complex. Statistical processors are used this

complex data into some significant understandable form.

CONSTRAINT OF THE STUDY

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.

Analysis&

Interpretation

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.

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

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.

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.

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

Percentage

55

31

39

2 Friends

Family

Retailers

Celebrity

Others

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________

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.

Q7. Are you satisfy with the present brand of chocolate in Yamuna Nagar_______

Satisfaction Level Percentage

Strongly satisfied 27

Satisfied 32

Neutral 21

Dissatisfied 12

Strongly dissatisfied 8

Consideration on manufacturing and Expiry date

27%

32%21%

12% 8%

StronglysatisfiedSatisfied

Neutral

Dissatisfied

Stronglydissatisfied

About 27%of consumers are satisfied with the present brands of Milk

chocolate bars in Yamuna Nagar and 32% are satisfied. As calculate with the

tool of LIKERT SCALE, if we consider brand wise then milk chocolate bar

of Cadbury is the most preferred brand in Yamuna Nagar 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

Analysis

Let us take the hypothesis as:-

H0 = There is correlation between various influencing factors like

price, taste, packaging, brand name etc. on buying behavior of consumers for

chocolate.

H1 = There is no correlation between various factors like price, taste,

packaging, brand name etc on buying behavior of consumers for chocolate.

X

Dx

Y

Dy

CADBURY AMUL NESTLE

+1 0 -1 f fdy fdy2 fdxdy

PRICE +2 8

(16)

4

(0)

4

(-8)

16 32 64 8

TASTE +1 19

(19)

3

(0)

16

(-16)

48 48 48 3

PACKAGING 0 3

(0)

5

(0)

1

(0)

9 0 0 0

BRAND NAME -1 7

(-7)

1

(0)

10

(10)`

18 -18 18 3

OTHER -2 3

(-6)

2

(0)

4

(8)

9 -18 36 2

f 40 25 35 100 44 166 16

fdx 40 0 -35 5

fdx2 40 0 35 75

fdxdy 22 0 -6 16

Coefficient of Correlation =

r = Nfdxdy - fdxfdy

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

r = 100x16 – (44)(5)__________

100x75-(05)2 100x66-(44)2

r = 1600-220_

146.6 x 149.62

r 1380___ = +0.132

10470.3

Hence it has been proved that there is a correlation between various

factors and buying behavior of consumers.

T-Test (Student’s Distribution)

For CadburyLet us take the hypothesis that customer 60% of consumers consumes chocolate more than once a week.

Frequency X (x)2 =

(X-X)2

More than one per day 6x5 30 10.24

Daily one 10x4 40 174.24

3-4 per week 18x3 54 739.84

Weekly 4x2 8 354.44

Rarely 2x1 2 615.04

TOTAL 134 1736.8

X1 = 10.4

s = √ ∑X2

n-1

S = √1736.8 = 20.84

4

t = X1- µ n

S

= 26.8-24 √5

20.84

=2.8 / 20.84x 5

= 0.301

t cal = 0.301

v=n-1

=5-1

v =4

t table 0.05 = 4.60

so t table > t calculated.

Hence hypothesis is accepted. This proves that 60% of

consumer consumes more than one chocolate of Cadbury per week.

For NestleLet us take the hypothesis that customer 60% of consumers consumes chocolate more than once a week.

Frequency X (x)2 =

(X-X)2

More than one per day 5x5 25 5.76

Daily one 9x4 36 73.96

3-4 per week 16x3 48 424.36

Weekly 3x2 6 457.96

Rarely 2x1 2 654.16

TOTAL 132 1607.2

X1 = 27.4

s = √ ∑X2

n-1

S = √1607.2 = 20.05

4

t = X- µ n

S

= 27.4-21 √5

20.05

=6.4 / 20.05 x 5

= 0.715

t cal = 0.715

v=n-1

=5-1

v =4

t table 0.05 = 4.604

so t table > t calculated.

Hence hypothesis is accepted. This proves that 60% of

consumer consumes more than one chocolate of Nestle per week.

For AmulLet us take the hypothesis that customer 60% of consumers consumes chocolate more than once a week.

Frequency X (x)2 =

(X-X)2

More than one per day 4x5 20 10.24

Daily one 6x4 32 51.84

3-4 per week 11x3 33 262.44

Weekly 3x2 6 116.64

Rarely 1x1 1 249.64

TOTAL 84 690.8

X = 16.8

s = √ ∑X2

n-1

S = √690.8 = 13.14

4

t = X- µ n

S

= 16.8-15 √5

13.14

=1.8 / 13.14 x 5

= 0.306

t cal = 0.306

v=n-1

=5-1

v =4

t table 0.05 = 4.604

so t table > t calculated.

Hence hypothesis is accepted. This proves that 60% of

consumer consumes more than one chocolate of Amul per week.

Let us take the hypothesis that there is association .

By applying Chi-Square……

OBSERVED

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

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

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

Findings

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.

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.

Conclusion

ConclusionEvery 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, this means that the

null hypothesis is selected and there is correlation between various

influencing factors like price, taste, packaging, brand name etc. on

buying behavior of consumers for milk chocolate bars.

SUGGESTIONS

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 defreezers 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.

Annexure

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”

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…

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 _______

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

Q10. Are you satisfy with the present brand of chocolate in Yamuna Nagar_______

Strongly Satisfy Satisfy

Neutral

Dissatisfy Strongly Dissatisfy

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

Name of the consumer ____________________________________

Age ____________________________________

Sex ____________________________________

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 306MAGAZINES & 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 Indian Journal Of Marketing – xxxv edition of January 2006

by K.suresh chandra 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

www.altavist.com