Chocolates Mr

A MARKET RESEARCH ON “CHOCOLATES”

PRESENTED TO:Dr.V.Nagrani

PRESENTED BY:Mohan kant 05-jvi-610 Vivek Talati 05-jvi-639

CONTENTS

PAGE NO.

Acknowledgement…………………..…………………………..3 Introduction..……………………………………………………...4 Objectives ………………………………..……………………..….5 Research Methodology…………………………………….…...6 Executive Summary……………………………………………..7 Question wise Detailed Report…………………….……8-20 Findings ………………………………………………………21-22 Recommendations ………………….…………...……….23-26 Conclusion ………………………………….…………………....27 Bibliography …………………………………….…………….…28 Appendix(sample questionnaire)…………….………29-30

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ACKNOWLEDGEMENT: The report is the opportunity to thank those who contributed towards its fulfillment. We are thankful to AMIT CHAUHAN for their vital inputs and valuable suggestions and continuous guidance, which have gone a long way in providing necessary impetus to our efforts in consummating this report. We are thankful to the large number of consumers in saharanpur who have supported us and played a very important role in making this research physically happens of saharanpur. We are also thankful to our friends for providing their great suggestions. Without their guidance and help it was not possible to complete the report. We would also like to thanks all of those who directly or indirectly made this project successful and made it presentable in front of anybody.

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INTRODUCTION:Welcome to the world of chocolates, this is a product from the group FMCG. In chocolate market there is a vast competition between various brands for existence in market as well as for creating a benchmark. There are various companies like Cadburys, nestle etc but few of them are getting success. Again most of the cases rather then the whole brands some of the product gets success, So success of a brand is measured in terms of • Market share. • Duration(number of years of stay in the market). So there is no question of taking profit as a factor because profit is a function of • The staying power of the organization and • The objectives of the organization There are also some criteria for the success of a brand. These are: • At the product level it should deliver results. • It should offer some intangibles besides tangible benefits such as satisfaction and enjoyment. Then question arise about the success full product. A successful products display one or more of the following three characteristics. • A significant price or performance advantage • Some significant difference from the existing brands. • A new untried idea. This survey is on a specified target people which are eating chocolates. 4

OBJECTIVE 1:- To make a detailed study of chocolates market and determine the consumer behavior pattern of buyers. 2:-To know how much electronic media influences a consumer. 3:-To record the most preferred brand of chocolate. 4:-To study the tastes and preferences, satisfaction, expected improvement and suggestions by then consumers. 5:-To test consumer about the packaging of the chocolate. 6:-To understand what are the factors considered by a consumer while buying a chocolate. 7:-To see what happens with the demand of the chocolate if there is any change in price. 8:-To know the consumption rate of consumers.

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RESEARCH METHODOLOGY Our Research is based on purely external data which are given below:External data: External data is based on two primary sources which are as follows. Primary data collection:We have collected our all data from questionnaires and observation methods. Secondary data collection:We have collected our secondary information from News paper, Internet and journals.

Sample size 30

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EXECUTIVE SUMMARY 1. This project is based on market research of CHOCOLATES. We have

try to study and understand the Consumer Behavior of the chocolates. 2. Under this research, we have approach approx.55 different people in

which have tried to cover three income wise market segmentation. i.e. HIG, MIG AND LIG. 3. We have covered approx. 10 customer of 8 customer of bhagvati colony,

HIG

11 of halimar garden

MIG

and 16 of jail chungi

LIG.

4. We have taken two brands of Chocolates they are Cadbury’s and Nestle. 5. In the research we have analyzed the each brand of chocolates in detail according to the 4p’s of marketing mix. 6.According to this research we have try to assess the strong link of the brand and the weak link of the brand. 7 .Then we have formulated the findings the position of each brand in which we have told about grabbing the market on the basis of:• • • •

Quality product rendered to customer. To attain customer satisfaction. To increase the taste so as to attract new market customers. To advertise their product which is accepted by every age group.

8.On the basis of weakest link of the brand, we have given recommendation in which we mentioned how to strengthen the weakest point of the brand.

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CONSUMER RESPONSES Q1. WHICH BRAND OF CHOCOLATES DO YOU PREFER TO EAT? CADBURY’S—17

NESTLE—11

ANY OTHER--02

MARKET SHARE

CADBURY'S NESTLE OTHERS

INCOME WISE MARKET SEGMENTATION 18 16 14 12 10 8 6 4 2 0

LIG

MIG

HIG

CADBURY'S NESTLE ANY OTHER

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Q2. HOW MANY CHOCOLATES DO YOU EAT IN A WEEK? DAILY--05 TWICE--18 WEEKLY—14

THREE OR MORE--14

DAILY TWICE THREE OR MORE WEEKLY

10 9 8 7 6 5 4 3 2 1 0

DAILY TWICE THREE OR MORE WEEKLY

LIG

MIG

HIG

Q3. YOUR CHOCOLATE IS YOUR FAVORITE BECAUSE OF:-

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TASTE--22 FAVORITE CELEBRITY--06 ANY OTHER REASON--00

QUALITY—15

TASTE FAVORITE CELEBRITY QUALITY OTHER REASONS

INCOME-WISE MARKET SEGMENTATION 12 10 TASTE 8 FAVORITE CELEBRITY QUALITY

6 4

OTHER REASONS

2 0 LIG

MIG

HIG

Q4. HOW DO YOU RATE THE QUALITY OF YOUR CHOCOLATE?

10

EXCELLENT--17 OK—01

VERY GOOD--07

GOOD--05

EXCELLENT VERY GOOD GOOD OK

INCOME-WISE MARKET SEGMENTATION

10 8 EXCELLENT

6

VERY GOOD 4

GOOD OK

2 0 LIG

MIG

HIG

Q5. ARE YOU SATISFIED WITH THE COST OF YOUR CHOCOLATE?

11

YES-- 24

NO--06

YES NO

INCOME-WISE MARKET SEGMENTATION

20 15 YES NO

10 5 0

LIG

MIG

HIG

Q6. IF THE PRICE OF OTHER BRAND OF CHOCOLATES BECOMES LESS

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THAN YOUR FAVORITE CHOCOLATE THEN WHAT WOULD YOU DO? SHIFT TO OTHER BRAND-- 13 CHOCOLATE--39

STICK TO YOUR

SHIFT TO OTHER BRAND STICK TO YOUR CHOCOLATE

INCOME-WISE MARKET SEGMENTATION

16 14 12 10

SHIFT TO OTHER BRAND STICK TO YOUR CHOCOLATE

8 6 4 2 0 LIG

MIG

HIG

Q7. HOW DO YOU RATE THE ADVERTISEMENT OF YOUR CHOCOLATE?

13

PERFECT --14

GOOD--36

POOR—02

PERFECT GOOD POOR

INCOME-WISE MARKET SEGMENTATION

14 12 10 8

PERFECT GOOD POOR

6 4 2 0

LIG

MIG

HIG

Q8. WHAT DO YOU LIKE TO WATCH IN THE ADVERTISEMENT OF YOUR CHOCOLATE?

14

CELEBRITY APPEARANCE-- 10 HUMOROUS (COMEDY TYPE) -- 18

GOOD THEME AD--31 ANY OTHER THING--00

CELERITY APPEARANCE GOOD THEME AD HUMOROUS ANY OTHER

INCOME-WISE MARKET SEGMENTATION

14 12 8

CELEBRITY APPEARANCE GOOD THEME AD

6

HUMOROUS

10

4 OTHER

2 0

LIG

MIG

HIG

Q9. WHAT DO YOU THINK ABOUT THE PACKAGING AND BRANDING OF YOUR FAVORITE CHOCOLATE? EXCELLENT-- 15 POOR—01

GOOD--33

AVERAGE--03

15

EXCELLENT GOOD AVERAGE POOR

INCOME-WISE MARKET SEGMENTATION

14 12 10

EXCELLENT

8

GOOD

6

AVERAGE

4

POOR

2 0

LIG

MIG

HIG

Q10. DO YOU PREFER TO GIVE CHOCOLATES AS A GIFT PACK? YES--39

NO—13

16

YES NO

INCOME-WISE MARKET SEGMENTATION

16 14 12 10 YES

8 6

NO

4 2 0 LIG

MIG

HIG

Q11. HOW DO YOU RATE THE AVAILABILITY OF YOUR FAVORITE CHOCOLATE ON RATING SCALE OF 1 TO 5? 5--24

4--15

3--11

2--1

1--1 17

5(VERY EASILY) 4(EASILY) 3(SOMETIMES AVAILABLE) 2RARELY AVAILABLE) 1(NOT AVAILABLE)

INCOME-WISE MARKET SEGMENTATION 9 8

5(VERY EASILY)

7 4(EASILY)

6 5 4

3(SOMETIMES AVAILABLE) 2(RARELY AVAILABLE) 1(NOT AVAILABLE)

3 2 1 0

LIG

MIG

HIG

FINDINGS:-

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•

SURELY, CADBURY’S IS A MARKET LEADER, BUT HAND BY HAND NESTLE IS EMERGING AS A HEALTHY COMPETITOR FOR CADBURY. IN HIG MARKET CADBURY AND NESTLE ARE THE CLOSEST COMPETITOR.

•

AMUL IS WAY BEHIND FROM THESE TWO MAJOR PLAYERS IN ALL THE INCOME SEGMENT OF THE MARKET.

•

FOREIGN PLAYERS HAVE STARTED TAKING ENTRY IN THE INDIAN MARKET .THEY ARE IN THE INTRODUCTION STAGE OF THE PRODUCT LIFE CYCLE.

• MOSTLY PEOPLE EAT 2 TO 3 CHOCOLATES IN A WEEK. INCOME –WISE:IN HIG PEOPLE USUALLY EAT CHOCOLATES ONCE IN A WEEK THE REASON CAN BE HEALTH CONSCIOUSNESS OR THE OTHER REASONS LIKE DRINKING JUICES, EATING FAST FOODS(AS MONEY IS NOT A BIG PROBLEM HERE). IN MIG PEOPLE GENERALLY EAT 2 TO 3 CHOCOLATES IN A WEEK. AND IN LIG PEOPLE EAT MOST CHOCOLATES I.E. MORE THAN THREE IN A WEEK. IN ALL THE SEGMENT I.E. LIG, MIG, HIG TASTE IS THE GIVEN PREFERENCE OVER QUALITY. ALTHOUGH THE QUALITIES OF CHOCOLATES ARE GOOD BUT TO MAKE IS MORE DELICIOUS THERE IS STILL LONG WAY TO GO.

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GENERALLY PRICES ARE AFFORDABLE BY THE CONSUMERS BUT A LARGE NUMBER OF PEOPLE IN MIG WANTS TO LOWERING THE PRICE. ANY PRICE INCREASE IN THE CHOCOLATES WILL INFLUENCE THE HIG AND MIG CUSTOMERS TO SWITCH OVER TO LESS PRICED SUBSTITUTES AND WITH THE NO SWITCHING AND BRAND LOYALIST IN THE CASE OF HIG CUSTOMERS. CADBURY’S AND NESTLE AD’S ARE CONSTANTLY APPEARING IN THE ELECTRONIC MEDIA, BUT THERE IS NO SUCH CASE ABOUT AMUL AS FAR AS AD ARE CONCERNED. IN ALL THE SEGMENTS PEOPLE GENERALLY WANTS GOOD THEME AD WITH SOME HUMOROUS BYTES AND THERE IS NO HUGE DIFFERENCES ARE APPEARED BY THE CELEBRITY APPEARANCE. BRANDING AND PACKAGING ARE NO MAJOR CONCERN FOR THE COMPANIES BUT THE CRISIS OF PESTICIDES AND GERMS PRESENCE IN THE CHOCOLATE WHICH TOOK PLACE 2-3 YEARS BACK HAS CREATED A GAP BETWEEN QUALITY TRUST AND REALITY. THE GIFT PACKS OF CHOCOLATE HAD PROVEN TO BE THE BEST INNOVATION FOR THE COMPANY AS THE ENTIRE INCOME GROUP LIKED THIS CONCEPT. CADBURY’S AND NESTLE ARE GENERALLY EASILY REACHABLE TO THE CUSTOMERS BUT AMUL IS MOST RARELY AVAILABLE CHOCOLATE IN THE MARKET.

RECOMMENDATIONS:FOR CADBURY’S 20

“CUSTOMER IS THE KING, DELIGHTS THE CUSTOMER” DEFINITELY CADBURY IS RUNNING ON THIS PATTERN BUT THERE ARE SOME AREAS WHICH ARE TO BE CONSIDERED ARE: MARKET SHARE: THE MAJOR CONCERN OF CADBURY’S IS THAT IT IS LOSING IT MARKET SHARE. IT IS NOT ALWAYS THAT YOU HAVE DONE SOMETHING WRONG BUT SOMETIMES YOUR COMPETITOR DOES THE WORK TOO WELL THAT YOU CANT DO ANYTHING. AS THE OTHER FOREIGN COMPETITORS (E.G.TOURBULENE ETC.)ARE ENTERING INTO THE INDIAN MARKET CADBURY’S HAS TO BECOME MORE CONCIOUS ABOUT THEIR BRAND LOYALIST.

FOR NESTLE

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RESEARCH AND DEVELOPMENT:THEY MUST SPEND CONSIDERABLE AMOUNT ON THEIR R & D DEPARTMENT TO IMPROVE THEIR TASTE AND QUALITY OF THE EXISTING PRODUCT LINE (LIKE THE MAIN REASON OF FAILING OF MILKYBAR IS THE TASTE OF THE CHOCOLATE) AND MUST INTRODUCE NEW PRODUCTS IN THE MARKET AND MUST INCREASE THEIR PRODUCT LINE. MARKET SHARE:AS NESTLE HAS THE 2ND BEST MARKET SHAREOF THE CHOCOLATE MARKET, WHAT THEY CAN SPEND MORE MONEY ON ADVERTISING THEIR WHOLE PRODUCT LINE (NOT ONLY FEW PRODUCTS LIKE WE HARDLY SEE ANY PROMOTION OF BAR-ONE OR MILKYBAR) AND THEIR ADVERTISEMENT SHOULD BE MADE CONSIDERING ALL AGE GROUPS AND INCOME GROUPS.

FOR AMUL

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TASTE: FIRST OF ALL TASTE IS THE MAJOR WORRYING FACTOR FOR THEM, PEOPLE DON’T LIKE THEM EITHER THEY HAVE TO CHANGE THEIR TASTE OR THEY WILL BE THROWN AWAY DIRECTLY. PRODUCT LINE: MORE PRODUCTS ARE REQUIRED TO BE LAUNCHED, THEY CANNOT STICK TO ONE OR TWO PRODUCTS UNTILL AND UNLESS THEY ARE TOO GOOD FOR NO CLOSER SUBSTITUTE. BRANDING:ALTHOUGH AMUL ITSELF IS A BIG BRAND NAME IN THE MARKET BUT THAT IS NOT ENOUGH TO MAKE YOUR CHOCOLATE POPULAR, YOU HAVE TO GIVE THE PROPER BRANDING PRODUCT-WISE (AMUL BUTTER, AMUL MILK IS KNOWN TO EVERYONE BUT HARDLY NO ONE REMEMBER AMUL CHOCOLATES). PACKAGING: THEY ARE FAR BEHIND IN THE PACKAGING, PEOPLE ATTRACT TO THE PRODUCT ONLY WHEN THERE IS CATCHY PACKAGING.THAT MUST BE IMPROVED. ADVERTISEMENT:PEOPLE DON’T EVEN REMEMBER ANY AD OF AMUL CHOCOLATES IN ANY MEDIA (I.E. ELECTRONIC OR PRINT MEDIA) .TO MAKE REMEMBER THE PRODUCT THE AD ARE PLAYING IMPORTANT ROLE IN RETAINING THE NAME OF THE PRODUCT. DISTRIBUTION:AMUL SHOULD BE AVAILABLE AT ALL THE OUTLETS AS CADBURY’S AND NESTLE ARE EASILY REACHABLE TO EACH AND EVERY TYPE OF CUSTOMER.

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TRY AND INTRODUCE SOME PROMOTIONAL CAMPAIGNS SO AS TO MAKE THEIR PRODUCT RECOGANISABLE IN THE PUBLIC.

CONCLUSION:-

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In the end we would like to conclude that Cadbury’s is the market leader with 60% share of the total chocolates companies. Nestle is emerging as a big market player with currently 26% market share. Amul will fade away if no changes are made. New foreign companies are coming to dominate the Indian market.

BIBLIOGRAPHY

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Market research through questionnaires

Internet (company website).

Guidance taken from Prof. VIJAY NAGRANI.

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