A

RESEARCH PROJECT
ON
“A study of consumer buying behaviour towards
chocolate bars with special reference to: cadbury,
nestle, amul”
(Submitted in partial fulfilment of the requirement of
Master of Business Administration, Distance Education,
Guru Jambheshwar University of Science & technology, Hisar)

Supervisor: Submitted by:

Name : Sonika Bansal Name of Student: Deepak

Designation : Lecturer Enrollment no. : 06061128052
Specialization : Marketing Management Specialization : Marketing

Session 2006-2008

Directorate of distance education

Guru Jambheshwar University of Science & technology
Hisar 125001
 STUDENT DECLARATION

I.hereby declare that the research project report entitled by “A study of

consumer buying behaviour towards chocolate bars with special reference
to : Cadbury,Nestle,Amul,”submitted in the partial fulfilment of the
requirement of Master of Business Administration, Distance Education ,
Guru Jambheshwar university of science & technology, hisar,is my
original work and the same has not been submitted to any other
institution for the award of any other degree and the suggestions as
approved by the project guide are duly incorporated.

( Deepak)
 Certificate

This is certify that the research project “A study consumer buying

behaviour towards chocolate bars with special reference
to:Cadbury,Nestle,Amul” has been completed by Mr. Deepak, a student
of MBA(Marketing) final year in the department of Business
Management,Distance Education, Guru Jambheswar University of
Science & TechnologyHisar, under my supervision.

This project report has been submitted in partial fulfillment of the

requirement of the award of postgraduate degree in Master of Business
and Administration. He has shown tremendous zeal enthusiasm &
innovations and has worked painstakingly for the successful completion
of this project.

I there fore recommend that the research project be sent for evaluation.

I wish him all the best in all his endeavors.

Ms. Sonika Bansal

Lecturer
 Acknowledgement

Market survey is now a days becomes very essential for any M.B.A.
program. It exposes the students to real business situations and the
environmental conditions of a business.
I like to thank Ms. Sonika Bansal Lecturer, Department of Business and
Administration, who provides us such a platform to prove our self. This
survey project helps us in gaining our confidence & market experience
which well be very helpful in future.

I like to thank my parents,family members,friends for Their effective

response and their kind help in completing our project.

I also like to thank our faculty members for their effective guidance
which helped me a lot in the completion of my project.

( Deepak)
Roll No. 06061128052
MBA (Final Year)
 Preface

For any organization the most important is to earn returns and become
leader of the market. For this any form needs to be consumer oriented and
take care of competition’s it needs to plan its strategy and anticipate
future needs and requirements. The firm needs to take care of the market
changes, environmental condition and latest technology.

Market strategy is a company’s wide philosophy. In order to be

successful, a firm has to follow some strategy. A proper marketing
mixture is needed to be designed.

Survey is an essential part of any management program. It is any essential

part of any business. Today business is totally based on marketing of any
organization. It exposes the student to real business situation and
environmental conditions and also about the latest technology that affects
its working. For the students of M.B.A. program, getting in touch with
practical marking practices of companies is must. Survey helps the
students to develop an insight into practical aspects of industry and to
understand the concepts better.

(Deepak)
 Contents (Index)

 Introduction to the study

 Review of Literature

 Consumer Behaviour

 Objective of 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

 Conclusions

 Suggestions

 Annexure

• Questionnaire
 • Referenc

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 17th
century writer called “the only true food of the gods” has been a fine art,
a delicate mixture of alchemy and science. Centuries ago it was
discovered that fermenting and roasting the beans could create an almost
otherworldly flavor. In 1875, after years of trying, a 31-year-old candy
maker in vevey named Daniel peter figured out how to combine milk and
cocoa power. The ancient Aztecs believed chocolate
To be the “FOOD OF THE GOD ”
Firstly, there is a need to know about the chocolate…that what is
chocolate. Why chocolate is the most popular dessert flavoring around.

MEANING OF CHOCOLATE:-
1. A preparation of the seed of cocoa, roasted, husked, and ground
(without removing any of the fat), often sweetened and flavored, as
with vanilla.
2. A beverage or confection made from this.
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. 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.
 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 17th
century writer called “the only true food of the gods” has been a fine art,
a delicate mixture of alchemy and science. Centuries ago it was
discovered that by fermenting and roasting the beans, an almost
otherworldly flavor could be created. In 1875, after tears of trying, a 31-
year-old candy maker in Vevey named Daniel Peter figured out how to
combine milk and cocoa powder. The result-milk chocolate. Peter, a
friend and neighbor of Henri Nestle, started a company that would
quickly become the world’s leading maker of chocolate. For three
decades the company called Peter, Cailler, Kohler relied on Nestle for
milk and marketing expertise. In 1929, the almost inevitable merge took
place as Nestle acquired Peter, Cailler, and Kohler.
 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.
REVIEW OF
LITERATURE
 REVIEW OF LITERATURE

Once the problem is formulated, the researcher has to undertake an

extensive literature survey related to problem. The literature survey
undertaken here includes books and different websites from the internet.
The research project was to know the Consumer preference and
Consumer satisfaction regarding Chocolate bars
(Cadbury,Nestle,Amul) on the basis of Price, quality, packaging and
Brand name.
.
1
• Schiffman. G. Leon and kanuk lazare Leslie - Study of the
customer behaviour is the study of how individuals make decisions
to spend their available resources (Time, Money and Efforts) on
consumption related items. It includes the study what they buy,
whey they buy it, when they buy it, where they buy it, how often
they buy it and how often they use it. The primary purpose for the
study consumer behaviour as apart of marketing curriculum is to
understand how and how customers make their purchase decisions.
There insights enable marketers to design more effective marketing
strategies.

2
• Gupta.C .B and Dr. Nair. N.Rajan - A business is based on
understanding the customer and providing the kind of products that
the customer wants.
3
• Mamoria C.B. and Mamoria Satish - Consumer behaviour is
the process where by individuals decide what, when, where, how
and from whom to purchase goods and services. Buying behaviour
may be viewed as an orderly process here by individual interacts
 with his environment for the purpose of making market decision on
products and services.
• Nair Suja. R.4 - The success of the firm will be determined by how
effective it has been in meeting the diverse customer needs and
wants by treating each customer as unique and offering products
and services to suit his/her needs.
5
• Bennett Peter.D. And Kassarjian Haroldh - A great deal of
research activity in marketing is design to shed light on the
customer decision process.
• Kothari C.R.6 For data analysis different statistical techniques are
being used such as scaling techniques, correlation, hypothesis
testing.
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
 CONSUMER DECISION MAKING PROCESS
External influences

Firm’s Marketing Efforts Socio culture Environment

• Family
• Product
• Reference Group
• Price
Input • Other non-commercial
• Place
influence
• Promotion
• Social class
• Culture and sub-
culture influences

Consumer Decision Making

• Need recognition Psychological Factors

• Information search
• Valuation • Perception
alternatives • Motivation
• Attitude
Process
• Learning
• Personality

Experience

Post Purchase Behavior

Purchase
• Trial
Output
• Repurchase

Post purchase evaluation

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.
OBJECTIVE OF
STUDY
 OBJECTIVE OF STUDY

1. To study the buying behaviour regarding the various brands of

chocolates

2. To study the popularity of various brands of chocolates

3. To study frequency of using chocolates

4. To study the brand loyality of the consumers

5. To study the frequency of changing the taste of chocolates.

6. To determine the factors those affect the purchase decision of
respondents.

7. To study the factors that lead to the selection of a particular brand.

8. To know the reasons for switching over from one brand to another.

9. To find out the most effective appeal in the Chocolates under the
study and media to be used.
10.To determine the extent to which advertisements play role in
purchase.

11.To study the motives behind the purchase of chocolates.

12.To suggest to the policy makers of chocolate bars industries for
further improvements in the industry to apply at global level.
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 Sirsa 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.

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

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 15-25 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

 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 = N ∑ fdxdy - ∑fdx∑fdy
√ N∑fdx2-(∑fdx)2 √ N∑fdy2-(∑fdy)2

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 Sirsa 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.
 Analysi
s
&
Interpretation
Q1. Which companies’ chocolate do you purchase? Please rank them
according to your preference.

Brand Name Percentage

Cadbury 40

Nestle 35

Amul 25

25%
40% Cadbury
Nestle
Amul
35%

As per shown in the Pie chart, the maximum market share is hold by
Cadbury. And least share is hold by Amul followed by Nestle. And this
result is obtained from the response of customers towards Questionnaire
filled by them for the consumption of milk chocolate bars.
Q2. What is your pattern of consumption?

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

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

Rarely

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

bars as 3-4 per week, which represent 45% of the total number of
surveyed consumers. And second most percentage of consumers
consumes milk chocolate bars are of daily one. 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
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

Price

9% 16% Taste
9%

Brand
18%
48% 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. 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

2 Friends

39 Family
Retailers
55
Celebrity
13 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.
Q5. 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

Strongly Agree
4%2%
28% Agree
37% Neutral
Disagree
29%
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.
Q6. Are you satisfy with the present brand of chocolate in Sirsa______

Satisfaction Level Percentage

Strongly satisfied 27
Satisfied 32
Neutral 21
Dissatisfied 12
Strongly dissatisfied 8

Consideration on manufacturing
and Expiry date Strongly
satisfied
Satisfied

8% Neutral
12% 27%
Dissatisfied
21%
Strongly
32%
dissatisfied
About 27%of consumers are satisfied with the present brands of Milk
chocolate bars in Sirsa and 32% are satisfied. As calculate with the tool if
we consider brand wise then milk chocolate bar of Cadbury is the most
preferred brand in Sirsa 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 CADBURY AMUL NESTLE

+1 0 -1 f fdy fdy2 fdxdy
Dx

Y
Dy
PRICE +2 8 4 4 16 32 64 8
(16) (0) (-8)
TASTE +1 19 3 16 48 48 48 3
(19) (0) (-16)
PACKAGING 0 3 5 1 9 0 0 0
(0) (0) (0)
BRAND NAME -1 7 1 10 18 -18 18 3
 (-7) (0) (10)`
OTHER -2 3 2 4 9 -18 36 2
(-6) (0) (8)
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 = N ∑ fdxdy - ∑fdx∑fdy
√ N∑fdx2-(∑fdx)2 √ N∑fdy2-(∑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.

RELEVANCE OF
STUDY
 RELEVANCE OF STUDY

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

of chocolates i.e. Amul, Cadbury, Nestle available in the market.

2. To find the extent of brand loyalty of consumers that exists among

different chocolate brands.
3. To study the influence of various aspects on buying behavior.
These factors are:-
 Price
 Taste
 Brand name
 Packaging
4. To study the usage & brand awareness of chocolates product in
among the residents of Sirsa.
5. To study the consumer preference for different chocolate products.
Conclusion
 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
 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 15-25 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 Sirsa 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
 Questionnaire
On

“Buying behavior of consumer for

Milk chocolate bar of age group
15-25
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 Sirsa_______

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 ____________________________________
 REFERENCES
BOOKS

• Marketing Management - Kotler Philip (1st edition

reprint)
• Marketing Research – Donald T.S (6th edition)
• Marketing Research – Beri G.C (3rd edition)
• Marketing Research – Boyd H.W (7th edition)
• Research Methods – Donald C.R (8th edition)
• Consumer Behaviour – Gupta S.L (2nd edition)
• Consumer Behaviour – Schiffman & Kanauk (3rd edition)

MAGAZINES & JOUNALS

• Advertising Express- February 2008

• Marketing Mastermind – March 2007 By Barada Prasad
Panigrhy
• Indian Journal Of Marketing - January 2006 by K.suresh
 chandra
• Business World –,2008
• Business India – Advertising 2006
• Business Today –2007
• Business Research – June 2007

Websites
www.amul.com
www.nestle.com
www.cadburyindia.com
www.consumerpsychology.co