ACKNOWLEDGEMENT

The successful completion of any work would be always

be incomplete unless we mention the valuable
cooperation and assistance of those people who were a
source of constant guidance and encouragement , they
served as bacon light and crowned our efforts with
success.
I would like to extend our sincere gratitude to our
Prof. VIJAY NAGRANI for his guidance.

1
 PREFACE

The Cadburys, Indias number one chocolate, is able to share

their market insights based upon unparallel breath of chocolate
experience.

The merger in 1969 with Schweppes and the subsequent

development of the business have led to Cadbury Schweppes
taking the lead in both, the confectionery and soft drink market and
becoming a major force in the international market. Cadbury
Schweppes today manufactures product in 60 countries and trades in
staggering 120.

This project is a sincere effort to study the buying behavior of

consumers when they buy chocolates. A descriptive research procedure
had been applied to come to the conclusions of the project.

A detailed questionnaire had been prepared and the responses of

the samples had been collected for the analysis. The project later
ended with the analysis of the responses keeping the limitations under
consideration.

2
 EXECUTIVE SUMMARY
TITLE: ANALYSIS OF THE BUYING PATTERN OF
CADBURY CHOCOLATE IN THE MARKET WITH
RESPECT TO ITS COMPETITORS.

Rationale of study:
The Cadburys Inc has taken the opportunity to offer us a broader view
of chocolate category. The Cadburys, Indias no.1 Chocolate, is able to
share their market insights based upon unparalleled breath of
chocolate experience. Cadbury has grown from strength to strength
with new technologies being introduced to make the Cadbury
confectionary business, one of the most efficient in the world. This
report studies about buying behavior of consumers in case of
chocolates.

3
 CONTENTS
1. INTRODUCTION TO THE STUDY 05-17

Introduction of Cadbury 05-06

History and development of Cadbury 07-10
Introduction of Nestle 11-16
Objective of study 16
Hypothesis 17

2. PRODUCT PROFILE 18-27

Cadbury product 19
Market segmentation 21

3. RESEARCH METHODLOGY 28-30

4. DATA ANALYSIES AND INTERPRETION 31-43

5. CONCLUSION AND LIMITATIONS 44-45

APPENDIX 46-51

QUESTIONNAIRE
BIBLOGRAPHY

4
INTRODUCTION

5
 INTRODUCTION

The Cadburys Inc has taken the opportunity to offer us a broader view of
chocolate category. The Cadburys, Indias no.1 Chocolate, is able to share their
market insights based upon unparalleled breath of chocolate experience.
Cadbury has grown from strength to strength with new technologies being
introduced to make the Cadbury confectionary business, one of the most efficient
in the world. The merger in 1969 with Schweppes and the subsequent
development of the business have led to Cadbury Schweppes taking the lead in
both, the confectionary and soft drink market and becoming a major force in
the international market. Cadbury Schweppes today manufactures product in
60 countries and trades in staggering 120. The Cadbury story is a fascinating story
of a family business that grew in one of the biggest, most loved chocolate brand
in the world.
This project is a sincere effort to study the buying behavior of
consumers when they buy chocolates. A descriptive research procedure had been
applied to come to the conclusions of the project.
A detailed questionnaire had been prepared and the responses of the
samples had been collected for the analysis. The project later concluded with
analysis of the responses keeping the limitations under consideration.

6
 The legend called Cadbury

1824 A business was opened in 1824 by a young Quaker, John Cadbury, in

Bull street Birmingham which was to be the foundation of Cadbury Limited,
now one of the worlds largest producer of chocolate.

1831 By this year the business had changed from a grocery shop and John
Cadbury had become a manufacturer of drinking chocolate and cocoa. This was
the start of Cadbury manufacturing business as it is known today. A larger factory
in Bridge Street Birmingham was rented in 1847, John Cadbury was joined by his
brother Birmingham and the business became Cadbury Brother of Birmingham.

1861 John Cadbury resigned his business and handed over to his sons, Richard,
25 and George, 21 who after 5 difficult years almost shut down the business to
take up other vocation. Fortunately for generation of chocolate lovers, they
didnt.

1866 Saw a turning point for the company with the introduction of a process
for pressing the cocoa butter from the coca beans. This not only enabled Cadbury
Brothers to produce pure coca essence, but the plentiful supply of coca butter
remaining was also used to make new kind of eating chocolate. The essence was
advertised as Absolutely pure, therefore best.

1879 Business prospered from this time and Cadbury Brother outgrew
the Bridge Street factory, moving in 1879 to a Greenfield site some miles from
the center of Birmingham which came to call Bourneville. The opening of
the Cadbury factory in a garden also heralded a new era in industrial relations
and employee welfare with joint consultation being just one of the introduced by
the pioneering Cadbury Brothers.

1899 In this year the business private limited company Cadbury Brothers
Limited. Progress since the start of the century through the inter war years
onwards has been rapid. Chocolate has moved being a luxury item to well
within the financial reach of everyone.

7
1905 Cadbury has many famous brands with one of major success story being
Cadburys Dairy Milk chocolate launched in 1905, today Britains favorite moduled
chocolate bar.
Cadbury today is the market leader in the U.K chocolate confectionary market,
employing the most advanced processing technology and management
information and control techniques. The company is the confectionary division of
Cadbury Schweppes plc which is major force in the confectionary and soft drinks
international market. World - wide Cadbury is one of the pre eminent
names in confectionary with impressive range of famous brands.
Quality has been the focus of the Cadbury business from the very beginning as
generations have worked to produce chocolate with that very special taste,
smoothness and snap, so characteristics of Cadburys chocolate.

8
 Cadburys Dairy Milk Story
Chocolate has been enjoyed by successive generation since the
manufacturing process was developed in the Victorian Times. Good chocolatiers is
an art form depending on recipe traditions, which have grown over the years.
Chocolatiers have use their skills to make balanced recipe in which all the
ingredients combine to produced chocolate with all the characteristics that
enable full delicious taste to be enjoyed by the consumers.
By todays standards the first chocolate for eating would have been considered
quite unpalatable. It was the introduction of the Van Houten cocoa press
from Holland that was the major breakthrough in the chocolate production as it
provided extra cocoa butter needed to make a smooth glossy chocolate.

Cadburys Milk Tray 1915

Milk Tray has maintained its popularity in the changing world since the milk
chocolate assortment made with the famous Cadburys Dairy Milk chocolate was
first introduced in 1915. The name tray derived from the way in which the
original assortment was delivered to the shops. Originally Milk Tray was packed in
five and as half pound boxes, arranged on trays from which it was sold loose o
customers. The half pound deep lidded box with the traditional purple
background and gold script was introduced in 1916, followed by one pound
box in 1924.With its stylish, without frills presentation Milk Tray was the
assortment for everyday, not just special occasion and it represented the best buy
in the chocolate for millions of people. The pack design has been regularly
updated and the assortment itself has changed in line with consumers taste and
preferences.
By the end mid thirties the Cadburys Milk Tray assortment outsold all its
competitions and today it is still one of the most popular boxes of chocolates in
this country.

9
 The secret of Cadburys success
What is the secret of Cadburys continuing success first theres the careful
selection of the finest coca beans from west Africa, as well as tasty hazel nuts
from Turkey and the fine sheet and choicest natural ingredient available to us
anywhere. Finally theres skillful marketing Cadbury always takes extreme care in
selecting and marketing the right range of product in every cause.
The right product, the right partners, the right marketing, the
promotional back up and the right employees. These are the ingredients in
Cadburys latest recipes for success.
Right from the stand Cadbury Dairy Milk Chocolate success has been based on 3
factors:-
Quality
Value for money
Advertising

10
 NESTLE INDIA
THE NESTLE India stock has been bubbling with activity in an otherwise
listless equity market.
Till date, the stock has surged 77 per cent from its low of Rs 304 in May 2000 and
now commands a valuation 39 times the expected earnings for 2000. This is
steep by FMCG standards.
The recent surge in the stock is partly driven by the announcement by the parent,
Nestle SA, that it would use the creeping acquisition route to mop up another five
per cent in Nestle India through open-market purchases. But improving the
stock's valuation can also be traced to good financial performance in a market
starved of healthy earnings numbers.

On a comeback trail
The resumption of its coffee exports to Russia and a favorable input price
environment pepped up Nestle India's net profit growth to 28 per cent in the first
nine months of 2000. Sales growth in this period was 10.4 per cent, with domestic
sales rising 9.8 per cent and export sales 13.8 percent. In reality, the growth in
sustainable net profits was higher than reported as the company took an
additional one-time charge of Rs 14.70 crore in the first nine months of
2000 for provisions against contingencies.
Unusually, low input prices may have contributed considerably to margin
expansion. Continuing surpluses in global production have pushed both coffee
and cocoa prices (the two key inputs for Nestle India, apart from milk) to historic
lows in 2000. While coffee prices are hovering close to their seven-year lows,
cocoa prices recently bounced off their lowest levels in three decades.

With global agencies forecasting high carry-in stocks for the next season,
the soft input price advantage could be with Nestle for the time being. Does
this mean Nestle India will sustain its healthy earnings performance over the

11
next couple of years? This will depend on its ability to revive sales growth in its
domestic product categories.

Greener pastures at home

Nestle's 10.4 per cent sales growth in the first nine months of 2000 is partly
magnified by the low base of comparison. The cessation of coffee exports to
Russia due to the economic crisis there, led to a 38 per cent drop in export sales
(and a 5 per cent drop in net sales) for Nestle India in 1999.
Instant coffee exports to Russia resumed this year, but the business remains poor
because realizations have fallen in line with green coffee prices. Since realizations
in the export market are unlikely to look up in the next year, Nestle will continue
to look to its domestic product portfolio to sustain earnings growth.
In recent times, as with other FMCG companies, Nestle India's topline growth in
the domestic market was unimpressive, at around 8 per cent in 1999 and 9.8
per cent in the first nine months of 2000. In the domestic market, Nestle India has
traditionally derived its revenues from five product baskets -- coffee
(Nescafe Select, Sunrise); milk products (Milkmaid condensed milk and
ready mixes, Coffeemate coffee creamer, Everyday Dairy Whitener); weaning
foods for infants (Cerelac, Nestum, Lactogen); chocolates/confectionery and
malted beverages (Milo, KitKat, Charge, Munch, Polo); and food products
(Maggi noodles, soups).

Cash cows slow down

Of these, weaning foods and milk products are the cash cows, with dominant
market shares in both businesses. But as these are mature products, they
appear likely to deliver steady, and not scorching, growth rates. Sales growth
in these businesses was less than five per cent in 1999-2000.
In chocolates and instant coffee, the growth prospects appear brighter,
but Nestle faces intense competition from the players with the dominant market
shares. While Unilever and Tata Coffee are significant threats in the coffee
market, the market leader Cadbury India has been a potent threat in the
chocolate confectionery market.

12
Nestle's Kitkat has actually ceded market share to Cadbury's Perk in the past year.
The market for specialized food products such as soups and noodles holds
healthy growth potential. But the market is relatively small and players such
as International Bestfoods, Unilever and Dabur are vying with a host of
imported brands and regional players for a share of the pie.

Stretching existing businesses

Over the past year, Nestle has devoted considerable attention to the expansion of
its domestic businesses. It has drawn brands such as Coffeemate coffee creamer,
Frappe cold coffee and Nescafe Gold from the Swiss parent's portfolio to expand
its milk products and beverages range. Incidentally, the inputs from the
parent do not come free. Nestle India paid its parent a Rs 53.69-crore
royalty in 1999 (net profits for the year were Rs 98.47 crore). Royalty payments
accounted for 3.5-4 per cent of sales over the past three years.
Nestle has used the soft input prices to reduce prices of its coffee and chocolate
brands. Products such as KitKat and Munch in low-unit price packs have
been used to encourage trial and bolster flagging volumes. But these moves will
take time to pay off.
However, the revival in the 2000 third quarter domestic sales is
heartening. For the quarter ended September 2000, Nestle reported an 18 per
cent growth in domestic sales (export sales declined 8 per cent due to lower
realizations). Considering that Nestle has reduced both coffee and chocolate
prices over the past year and held other product prices, this indicates volume
growth of a higher order.
A plan to expand the network of Nescafe vending machines and establish
coffee bars to encourage out-of-home consumption of coffee is also on the cards.

13
Testing the waters
Over the past year, the company has also announced forays into three new areas
-- liquid milk, bottled water and biscuits. The foray into biscuits is through the
joint venture Excelsia Foods, so the contribution to Nestle's revenues
may at best be in the form of dividends for now.
Liquid milk and bottled water are businesses that hold immense growth
potential. Larger players can expand through higher penetration levels
and at the expense of the unorganized segment. However, both these
segments are quite crowded with feature listed and unlisted players which have
considerable financial muscle.
In the liquid milk segment, Nestle will be up against the formidable Amul, apart
from a host of private dairies with established clientele.
In the bottled water market, the market leader, Bisleri (of Parle Products),
has had to contend with competition from scores of me-too brands, apart from
Pepsi's Aquafina, Coca-Cola's Kinley. Going forward, competition is only
likely to increase, with Britannia planning to launch more bottled water
brands from its foreign collaborator Danone's portfolio (Evian, one of the
largest bottled water brands, is already on shop shelves).

Striving for niches

Nestle India has already launched two bottled water brands in the domestic
market -- the internationally renowned Perrier, followed recently by its
sparkling mineral water brand, San Pellegrino (reputed to be sourced from the
Swiss Alps).
However, both products are for upmarket consumers. The premium pricing
suggests that the products will remain niche products with relatively small
target markets. Pure Life, the mass market bottled water brand to be
launched shortly, will determine the success or failure of Nestle's bottled
water foray.
Nestle India has also shied away from the mass market for liquid milk in plastic
pouches, and instead restricted itself to ultra heat treated (UHT) milk in

14
Tetrapacks. The product is priced at a substantial premium to the other local
brands.
Investment outlook: Nestle's new product forays are into extremely
competitive markets and investments in the new businesses are likely to be high
over the next few years.
In this respect, the advantage of soft input prices, high cash flows available
from the stable businesses (such as weaning cereals and coffee) and the
financial might of the parent, Nestle SA, will stand Nestle India in good stead.
The royalty to the parent should ensure that Nestle India continues to enjoy
ungrudging access to the parent's product portfolio. In many respects, in India
Nestle is pitted against its key adversaries worldwide -- Groupe Danone
and Unilever. In the foods business at the global level, both companies are
considerably smaller than Nestle SA.
But marketing prowess, rather than size is likely to determine the success
of Nestle India's new product forays in the next couple of years. Since the
high growth rates of this are partly on account of the low base of last year,
the growth rates are likely to reach more moderate levels next year.
The stock continues to be a good investment option for investors with a
three-year horizon. But since the recent uptrend is partly on account of factors
unrelated to the fundamentals, there could be some downside to the stock in the
near-term.

15
 OBJECTIVE OF THE PROJECT
Our main objective of the study on this project was to analyze the buying
pattern of Cadbury chocolate in the market against its
competitors.

Following are the some of the main objective of our report:

Analyze the buying behavior of consumers regarding chocolate.

Comparative study of Cadbury chocolate in the market with its
main competitors.
To study about the customer taste and preference in
the confectionary item.
To find out the market share of the different competitors in the
Chocolate industry.
And also to find out the satisfaction level of customer
about their product.
To find advertisement effect consumer buying behavior.
To find which promotion scheme affect more.

This report gives the help to the marketers for analyzing the different
opportunities in the chocolate industry.

16
 HYPOTHESIES

Cadbury are more preferred brand than other brand.

Diary milk is number 1 sub brand of Cadbury.

Price is most important factor of consumer buying behavior.

Most of customer recalls advertisement at a time of purchasing

chocolate.

Attractive display inside store more affects at the time of

purchase a chocolate.

Most of people like HARD chocolate.

17
PRODUCT PROFILE

18
 Cadbury Product

1. Dairy Milk

2. 5 Star

3.Perk

4. Celebration

5. Temptation

19
Cadbury Schweppes
Cadbury Schweppes plc, a global beverage and confectionary giant with
annual sale of Rs 20,000 crores,is the worlds number one non cola soft drink
company having bottling and partnership operations in 14 countries and
franchises of its brand in a further 86 countries around the world. Its
Hundred Percent subsidiary in India named Cadbury Schweppes Beverage
India (private) Limited (CSBIL) started operation in March 1995. The first brand
was launched was crush which was later followed by Canada Dry, Schweppes
Tonic Water, Schweppes Bitter Lemon.
CSBIL with its franchise agreement with 19 bottles throughout India proposes to
be a household name. It has a policy for FOBOs (Franchise owned
bottling operations unlike Coke and Pepsi which prefer COBO,s (Company
owned bottling operations). In FOBO the beverages company only supplies
the concentrate and the marketing support to build brand equity. The other
aspects like machinery, bottling line, land and distribution is the responsibility of
the bottler.
As its CEO Mr. Ashok Jain says, we are the software, they are the hardware.

20
Cadburys Market Segment
Market place for any product is comprised of many different segments of
consumers, each with different needs and wants. Markets segmentation
can be defined in a number of ways such as:

Demographic variables (e.g. Consumers are groups, gender, material

states income etc)
The lifestyle of consumers (i.e. their interests and activities) the benefits
which consumers look for in a product or on the occasions when the
product might be consumed.
Cadbury takes into account all these factors when producing a range of
products. It targets different segments within the market, such as the.
Break segment products which are normally consume as a snatched
break and often with tea and coffee, for example Cadburys Perk and
snack range.
Impulse segment these products are often purchase on impulse,
eating these and then. They include product such as Cadburys Dairy Milk.
Take home segment this describes product that are normally purchased
in supermarkets, taken home consumed at a later stage.

To meet the objectives of our project, we segmented the market on the

basis of age and focused on age group 5 o 35 yrs.

21
 The Real Taste of Rejuvenation
It was the market leader, but sales inched along. It focused firmly on its target
segment, but the real buyer lay beyond. For seven long years, Cadburys Dairy
Milk chocolate suffered stagnancy even as other consumer products
boomed. Just how did the company rejuvenate an old brand to create the
marketing megs-hit of the 199s?
It Stand First Among Second coming. And it wasnt so much a re-launch as it
was a process of rejuvenation. Over a period of 12 months, starting
February, 1994, the Rs. 314 crore confectionery makers Cadbury embarked
on the most outrageous repositioning exercise in the recent history of
Indian marketing. For, it systematically dismantled the franchise that the
company had built over 30 years of its flagship brand, Cadburys Dairy Milk
(CDM)-Cadburys Milk chocolate until 1986-destroying the very fundamentalof
generic association that had made million of Indians refer to a bar of a chocolate
as a Cadbury.
More proof of the chocolate is in the eating: two years into process, CDMs
market share at 25%, with sale rising by an average 40% per annum.

The Diagnosis
Today, The Real Taste of Life campaign, which served Up chocolate in general,
and COM in particular, into the consciousness of adult, has already become
a classic of advertising and marketing. By 1993, Cadbury was desperately seeking
growth for the brand With a market share of 70%, trying to win
away customers from competitors in this stagnant market wouldnt help. They
had to find new customers, people whod never bought chocolate before. Or,
they had to increase consumption levels. The obvious solution, in a
peculiar predicament. Despite low penetration, both the brand and the category
were displaying symptoms of age: faltering growth, high recognition, and lack
of excitement. The market research revealed the cause of the graying: chocolate
wasnt a snack in India.
In mature markets, chocolate straddle a continuum, from boutique
Product packaged raw indulgence to a casual food. So, Cadbury whipped up
a growth solution that involved associating the brand with snacking and

22
functionally, which inevitably go together with high consumption rates in the
Western markets.
The next step: identify the barriers preventing consumers from chocolate
as a snack. A battery of test, both quantitative and qualitative,
comparing chocolate consumption to a basket of competitive products
revealed an unmistakable answer.

The Tests
Despite the Need To Clear The residual memory of CDMs former
Association, caution prevented a big break with the past, forcing
Cadbury to experiment with a combination of continuity and change. The process
entailed understanding the foundation of the brand, since it was these that
would support the new structure. Out went the caring - and - sharing
element, but the family context stayed.
Cadbury had two pillars, so it made sense to change one.
Chocolate should be eaten whenever you feel like. It was an impulse item, so
why shouldnt it be sold as one?. The first of the two commercial focused
on functionality, purging the emotional element. Is the storyline, The father
watches TV, engrossed, gnawing away of CDM. The children enter, followed by
the mother-but, by that time, the father has completed the distinctly un
paternal act of devouring the entire bar. The children are shocked, where upon
the produces another bar for them-only to eat that up too. Finally, the mother
brings another bar out of her bag. The last shot more CDM bars strew around
casually.
The second commercial conveyed the same message, depicting four member
of a family doing their own thing on a Sunday afternoon, each casually
munching away on chocolates. The less than subtle
message: eating chocolates just an everyday affair, without special occasion
or relationship coming into play. Despite their strategic intent, both ads
failed on pre airing tests. Why for stators, children were outraged at the
idea of a parent

23
consuming chocolate, while adults were down right angry at the notion of the
father depriving his children of chocolate bar. Just as important, consumer
rejected the idea that chocolate-eating could be equated with mechanical
activities like combing ones hair. After all, chocolates were about feelings. There
had to be magic, romance, love and emotion. These elements had been
ripped away from the advertising. It was sans emotion.

Parent Are Different From Adults

Even as the ad failed, however, they generated a valuable byproduct, in the form
of a new insight, into adult behavior. Using transactional analysis on response,
Cadburys found that adult as parents behave very differently from adults as
adults. People forbid their children from having chips, but gorge themselves.
The implication:-The moment the adult was shown in the context of his
role as a parent, all his cognitive preconception about the product would come to
the fore. Hed think about the reasons why, and the block would automatically
come up. Tap child-ego state within the adult, stimulating desire,
spontaneity, and the craving for instant gratification.

The Prescription
The crucial question that Cadbury was confronted with: what strategy should it
deploy to rejuvenate COM in a way that would appeal to the child lurking within
the adult? To inject a modern flavor into COM, they chose to create a new
brand identity, borrowing a leaf from marketing guru David Aaker, who
decrees that brand identity should establish a relationship between the brand
and the customer by generating value proposition involving functional,
emotional, or self-expressive benefits.

24
The Ads Had To Be Linkable
The consumer will always tell what his current belief system is, not what it
should be Cadburys job to mould has habits and behavior in a way that would
increase consumption for product and brand.

Impulse Drives Chocolate Sales

One of the tools Cadburys used was Jean Neal Kapferers Brand Prism model to
examine whether contemporary value systems offered a peg on which the
brand could be judge. The study disclosed, interlaid, a distinct shift from
collectivism to individualism, with the pre 1990s sacrosanct values of filial
and family love being overshadowed by the manifestation of a larger
need for self expression. There was a definite yearning to be free child.
There inlay the opportunity for both unshackling consumption and creating all-
new association for CDM.

The Elixir
Having decided to barter the distinctly use selfish values of sharing and caring for
the suspiciously self-centered one of self-expression, Cadburys people insisted
that the rejuvenate be enriched with compensation and equally
enduring positive values: universal truths, enduring human values, and
universal moment of joy. To translate the brief into the commercial, they
decide to simply portray occasion of childlike-but not childish-behavior from
adults, without explicitly identifying adults as the target customer.
They left the connection to be made by the customer In the process they were
able to get viewer involvement and high levels of empathy. Nowhere did they
actually say, youre an adult, you can eat it. Because nobody wants to be
told. Thus it was that, the montage of the child in the man-the old man kicking
the football; the pregnant woman carving a chocolate; young girl breaking
into a spirit; the young man tossing a bar of chocolate at his sweet-heart
departing in a bus-was created.
That the consumption had to be liked before it could penetrate the cultural
resistance to chocolate consumption by adults was obvious. Taking a contrition
25
stance, Cadbury decided to test the commercial being devised by O&Ms
creative team not for the tire battery of likeability, comprehension,
credibility and behavior modification but only for the first two. If asked
upfront, the consumer was hardly likely to consider the dramatically-
different idea credible. Nor was there much chance of her announcing an
immediate change in behavior. But why likeability and comprehension?
Simple: the first was meant to be the vehicle on which the daring idea-that
adults should enjoy chocolate-would ride into the consumers psyche. In other
words, the commercial was meant to make him smile at first-and only then realize
the import once of the message, which is where the comprehension had to be
tested. What was clear in this case wasthat likeability would have to include
identification and feeling warmth.

The Real Taste of Life Campaign

The very first ad in the campaign in 94 was block Buster. It depicted
the essence of one and a half glass of milk pouring in to a boy Dairy Milk unique
glass and half in to a chunk icon shows the glass and a half of full cream milk
flowing in to the chunk of dairy milk conveying the deliciousness and taste
appeal of the gooey, creamy, smooth chocolate inside the pack that
children like. The mnemonic of 1 glass reached to consumer through
every magazines, poster, T.V, newspaper.
The second ad was montage of vignettes from everyday lives of young and old
which focused on showing a series of emotions. The ad created a being out
the child in the man created to bring out the child in the. The old man kicking the
football, the pregnant women craving chocolate, young girls breaking into a spirit,
the young man tossing a bar chocolate at his sweet heart departing into a bus.
The common refrain linking them was the adult in a free child mode spottiness,
impulsive and carefree.
The ad was protested among adults trough focus groups. The ad received
an overwhelming response. It was high on likeability, evoked a great degree of
empathy and identification consumers response were those me Feel like
that.. Every feels like this..accessions. Consumers described dairy
milk as of all agesEat, when ever you feel like ityou do not have to
wait for an occasion.

26
Dairy Milk had successfully enabled the free child in the consumer subsequent
adverting used the same communication strategy.In other words, the commercial
was meant to make him smile at first-and only then realize the import once of the
message, which is where the comprehension had to be tested. What was clear in
this case was that likeability would have to include identification and
feeling warmth.

The New Campaign

And finally, with the launch of the new colloquial advertising campaign
Khaannein Wallon Khaannein Ka Bahana Chahiya featuring MTV VJ Cyrus
Broacha, Cadbury India aimed to substantially increase penetration level of
the chocolate category in the next few years.
The New campaign is worth noting as it clearly differ from the earlier one in terms
of rectifying the consumer perception about chocolate being an up market
impulse driven product. The attempt now is to change the image, to make
chocolate eating a regular habit.The current estimated penetration level of the
chocolate category is 19% in the urban market. The objective behind tne
new communication on Cadbury Dairy Milk is to make the chocolate
category more socially and culturally relevant and drive penetration in the
process.
The new campaign has been launched in tandem with the old ar@@ Winning
Kuch Khass Hai campaign and the media strategy is to let the two co exist
towards a common vision providing a Cadbury in every pocket.

27
 RESEARCH
METHODOLOGY

28
 RESEARCH METHODOLOGY
Achieving accuracy in any research requires in depth study regarding the subject.
As the prime objective of the project is to know buying behavior of
consumers regarding Cadbury with the existing competitors in the market and the
impact on Cadbury. The research methodology adopted is basically based on
primary data via which the most recent and accurate piece of first hand
information could be collected. Secondary data has been used to support primary
data wherever needed.
Primary data was collected using the following technique
Questionnaire Method

Procedure of research methodology

Target geographic area was Saket and Sangam Vihar.
For this geographical area we asked closed ended questions.
The period during which questionnaires were filled was two weeks.
Finally the collected data and information was analyzed and
compiled to arrive at the conclusion.

Sources of secondary data

Used to obtain information on, Cadbury and its competitor history, current issues,
policies, procedures etc, wherever required.

Internet
Magazines
Newspaper

29
Sampling Method
Sample size- 60

Sampling involved selecting units from a population of interest so that

by studying the sample we can fairly generalize the results back to the
population from which they were chosen. In the present course work,
convenience sampling was used and an aggregate sample size was 60.

Sampling procedure-

We have taken simple random sampling.

Data analysis-

The data collected through survey was analyzed with help of simple
percentages. Tabular and graphic methods, which included pie charts
and bar graphs, were used to analyze data.

30
DATA ANALYSIS AND
FINDINGS

31
 DATA ANALYSIS AND FINDINGS
Data was tabulated manually and was also analyzed manually. Excel was used to
make graphs had pie charts.

FINDINGS AND SURVEY

1. Which brand of Chocolate do you prefer?

Cadbury % Nestle %
Below 16 yr 14 31% 6 40%
16.1-25 yr 18 40% 2 13%
Above 25 yr 13 29% 7 47%
Total 45 15

Prefer brand Brand preffer by

cadbury nestle different age group
20

15
25%
10 cadbury
75% 5 nestle

0
Below 16 16.1-25yr Above 25
yr yr

32
2. Which sub-brand you have purchased?

Cadbury Below16 16.1-25 Above25 Nestle >16 16.1-25 <25

Diary Milk 9 10 8 Kit Kat 2 1 6
5 Star 1 7 3 Munch 3 0 1
Perk 4 1 2 Milky Bar 1 1 0
Celebration 0 0 0 Bar-One 0 0 0
Temptation 0 o 0 Milk Chocolate o 0 0
Total 14 18 13 Total 6 2 7

12

10

8
Below16
6
16.1-25
4 Above25

0
Diary Milk 5 Star Perk Celebration Temptation

7
6
5
4 >16

3 16.1-25
2 <25
1
0
Kit Kat Munch Milky Bar Bar-One Milk Chocolate

33
3. Rank the sub-brand of chocolate according to your preference?

Cadbury >16 16.1-25 <25 Nestle >16 16.1-25 <25

Diary Milk 59 65 52 Kit Kat 26 7 33
5 Star 45 56 38 Munch 24 5 22
Perk 51 50 43 Milky Bar 18 6 19
Celebration 32 48 33 Bar-One 14 2 14
Temptation 18 50 28 Milk 8 6 13
Chocolate

70
60
50
40 >16
30 16.1-25
20 <25
10
0
Diary Milk 5 Star Perk Celebration Temptation

35
30
25
20 >16
15
16.1-25
10
5 <25
0
Kit Kat Munch Milky Bar Bar-One Milk
Chocolate

34
4. How much importance do you give to the following factors when you purchase
a chocolate?

(Below 16)

Factors Very Important Normal Least None

Important Important
Flavor/taste 13 6 1 0 0
Price 5 10 5 0 0
Quality 8 9 3 0 0
Packaging 5 12 4 1 0
Brand 6 9 2 3 0
Quantity 2 11 6 1 0

14
12
10 Very Important

8 Important
6 Normal
4 Least Important
2 None
0
Flavor/taste Price Quality Packaging Brand

(Between 16.1 to 25)

Factors Very Important Normal Least None

Important Important
Flavor/taste 17 1 2 0 0
Price 2 8 5 5 0
Quality 9 4 3 2 2
Packaging 4 7 7 2 0
Brand 7 12 1 0 0
Quantity 8 7 3 2 0

35
 20

15 Very Important
Important
10
Normal

5 Least Important
None
0
Flavor/taste Price Quality Packaging Brand

(Above 25)
Factors Very Important Normal Least None
Important Important
Flavor/taste 13 5 1 1 0
Price 3 14 3 0 0
Quality 7 12 1 0 0
Packaging 4 7 5 4 0
Brand 1 9 7 1 2
Quantity 4 8 6 1 1
15
Very Important
10 Important
Normal
5
Least Important
None
0
Flavor/taste Price Quality Packaging Brand

36
5. At the time of purchasing chocolate, do you recall advertisement?

YES 34
NO 26

Number of customer recall

advertisement
NO
43%

YES
57%

6. Please tick the following sources of information in term of effect, when you
purchase a chocolate? (Below 16)

More Effect Somewhat Not

Effect
Factors effect Effect

Attractive Display inside store 7 11 2 0

Advertisement 6 10 4 0

Suggestion from friends and relatives 5 8 7 0

Brand Ambassadors 5 6 1 8

Ingredients 4 7 8 1

37
 12
10
8
More Effect
6
4 Effect
2 Somewhat
0
Not
Attractive Advertisement Suggestion Brand
Display inside from friends Ambassadors
store and relatives

(Between 16.1 to 25)

More Effect Somewhat Not

Effect
Factors effect Effect

Attractive Display inside store 5 10 1 4

Advertisement 5 12 2 1

Suggestion from friends and relatives 3 7 7 3

Brand Ambassadors 0 6 7 7

Ingredients 10 4 4 2

15
10 More Effect
5 Effect
0 Somewhat
Attractive Advertisement Suggestion Brand Not
Display inside from friends Ambassadors
store and relatives

38
(Above 25)

More Effect Somewhat Not

Effect
Factors effect Effect

Attractive Display inside store 10 6 4 0

Advertisement 4 11 3 2

Suggestion from friends and relatives 2 13 4 1

Brand Ambassadors 2 5 6 7

Ingredients 7 11 1 1

14
12
10
8 More Effect
6 Effect
4 Somewhat
2 Not
0
Attractive Advertisement Suggestion Brand
Display inside from friends Ambassadors
store and relatives

39
7. Which form of chocolate do you like?

Hard 15
Nutties 19
Crunchy 25
Chew 1

Chew Forms Of Prefered

2%
Chocolate
Hard
25%
Crunchy
41%
Nutties
32%

Below 16 Between 16.1 to 25 Above 25

Hard 7 5 3
Nutties 4 7 8
Crunchy 9 7 9
Chew 0 1 0

10

6 Below 16

4 Between 16.1 to 25
Above 25
2

0
Hard Nutties Crunchy Chew

40
8. What pack do you purchase?

Below 16 Between 16.1 to 25 Above 25

Small 11 12 5
Big 9 8 12
Family Pack 0 0 3

15

10 Below 16

5 Between 16.1 to 25
Above 25
0
Small Big Family Pack

9. Which promotional offers attract most?

Below 16 Between 16.1 to 25 Above 25

Free gifts 14 4 8
Price offer 6 15 12
Any other 0 1 0

16
14
12
10 Below 16
8
Between 16.1 to 25
6
4 Above 25
2
0
Free gifts Price offer Any other

41
11. Where do you purchase chocolates from?

Option 1 Option 2 Option 3 Option 4

Below 16 3 12 3 2
16 to 25 6 8 3 3
Above 25 2 9 6 3

15

10 Option 1
Option 2
5 Option 3
Option 4
0
Below 16 16 to 25 Above 25

12. How frequently do you purchase chocolates?

Below 16 16 to 25 Above 25
Once in a fortnight 0 1 1
Daily 6 11 13
Weekly 12 1 1
Monthly 2 5 4
Quarterly 0 2 1

14
12
10
8 Below 16
6 16 to 25
4
Above 25
2
0
Once in a Daily Weekly Monthly Quarterly
fortnight

42
13. If your preferred brand is not available for repeat purchases then what will
you do?

Below 16 Between 16.1 to 25 Above 25

Postpone your purchase 2 6 6
Switch over to other brand 9 6 11
Go to the other shop to 9 8 3
search for your preferred
brand

43
 CONCLUSION

Cadbury is the most preferred brand than other brands in India and Dairy
Milk is the most preferred product from Cadbury.

Flavor and packaging are most important factors that affect the buying
behavior of customer. 57% of customer recalls advertisement before buying the
product. So by our research it is concluded that advertisement affects the buying
behavior.

41% people like crunchy and 32% people like nutties chocolate. And most
of the people like small packs. Free gift are more attracting for children and price
offer schemes attracts middle group more.

44
 Limitation
1. Segmentation was based on age group only.

2. As sample size of 60 is small so the buying behavior of whole cant be

appropriately judge.

3. The research was restricted to a small geographical area.

4. Minimum age among respondent was 5 year and maximum 35 years.

5. The study dont consider occasion of buying chocolate.

45
APPENDIX

46
 QUESTIONNAIRE

NAME-

GENDER- MALE FEMALE

AGE- Below 16 16.1 - 25

Above 25

Que1. Do you eat chocolate?

Yes No

Que2. Which brand of chocolate do you prefer?

Cadbury Nestle

Que3. Which sub-brand you have purchased?

Cadbury Nestle

Dairy Milk Kit Kat

5Star Munch

Perk Milky Bar

Celebrations Bar-One

Temptation Milk Chocolate

47
Que4. Rank the sub-brands of chocolates according to your preference?

(5 for most and 1 for least preferred).

Cadbury Nestle

Dairy Milk Kit Kat

5Star Munch

Perk Milky Bar

Celebrations Bar-One

Temptation Milk Chocolate

Que5. How much importance do you give to the following factors when you purchase a chocolate?

(Tick in the desired column)

Factors Very Important Normal Least None

Important Important

Flavor/taste

Price

Quality

Packaging

Brand

Quantity

48
Que6. At a time of purchasing chocolate, do you recall advertisement?

Yes NO

Que7. Please tick the following sources of information in term of effect, when you purchase a
chocolate?

Factors More Effect Effect Somewhat Not

effect Effect

Attractive Display inside store

Advertisement

Suggestion from friends and relatives

Brand Ambassadors

Ingredients

Que8. Which form of a chocolate do you like?

Hard Nutties Crunchy Chew

Que9. What pack do you purchase?

Small Big Family Pack

Que10. Which promotional offers attract you most?

Free gifts Price Offer Any other (specify)

___________________

49
Que11. Where do you purchase chocolates from?

Neighborhood shop where chocolates are kept in bottles

Neighborhood shop where chocolates are kept in cold storages
Neighborhood shop where chocolates are kept in special boxes
Malls and convenience store

Que12. How frequently do you purchase chocolates?

Once in a fortnight Daily

Weekly Monthly

Quarterly

Que13. If your preferred brand is not available for repeat purchases then what will you do?

Postpone your purchase

Switch over to other brand

Go to the other shop to search for your preferred brand

Que14. If another brand of the same product appears in the market, will you prefer to stop buying this
brand and buy the new brand?

No, not at all I may consider

No, I shall not Cant say

Thank You

50
 BIBLOGRAPHY
1. www.cadburyindia.com

2. www.nestle.in

3. Marketing Management - Philip kotler

51