Contents Pages Number
Contents Pages Number
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The studies have shown that most of the time chocolate buying is an impulse action
i.e. when one sees the chocolates on the shelf of the shop so, it is very important for
the manufacturer to package them attractively.
Now a day chocolate are positioned as a thing which can be eaten by each and
everyone.
We had to gauge the strength and weaknesses of establish players in the chocolate
market. So, we regard top players like ‘Cadbury’s’, ‘Nestle’, ‘Amul’ and some
Foreign Chocolates.
Out there in the chocolate market Cadbury has had the market share of about 71%
followed by Nestle at about 23% followed by Amul 4% & about 2% by rest small
players.
There were various reasons due to which there was such a large gap between the
market leader and the rest such as: -
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Cadbury’s main strength is fast reaction is every time the competitors launch a
product they immediately launch a rival product with far lower prices like eg. When
Nestle launched “Kit-Kat” Cadbury’s soon followed with “Perk” with far lower
prices. So as to retain its market share in which they have succeeded.
The other strength, which we feel, is distribution network. Cadbury’s has a far better
distribution network than Nestle and Amul. Its chocolates can be found in every nook
and corner of the country where as the competitors have not been able to do so.
Another interesting strength, which we found out during the market research, was the
packaging strategy, we found out that all.
Big players especially Cadbury’s keep on changing the packaging of its chocolates
after every six months. Most of people decide to buy the chocolate only if they find
the packaging attractive. But there are some weaknesses also attached with the
chocolate industry like we all know that chocolate as such is a perishable commodity,
so, if there is no proper maintenance the chocolate can easily perish due to which the
company can run into severe losses.
As the Indian company economy is coming out of age and per capita income as well
as spending is increasing, there is a lot of opportunity in the chocolate market. The per
person consumption of chocolates of Indian is very low as well as there are very few,
established players in the market.
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HISTORY OF CADBURY
Cadbury has been synonymous with chocolate since 1824, when John Cadbury
opened his first shop, establishing a flourishing dynasty that today provides the world
with many of its favourite brands of chocolate.
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FOUNDING OF THE CADBURY
BUSINESS
The founding of the Cadbury business dates back to 1831 when John Cadbury first
made cocoa products on a factory scale in an old malt house in Crooked Lane,
Birmingham.
In 1847 the business moved to larger premises in Bridge Street, which had its own
private canal spur linking the factory via the Birmingham Navigation Canal to the
major ports of Britain.
Business continued at the Bridge Street site for 32 years and by 1878 the workforce
had expanded to 200, so more space was needed. This heralded the move to
Bourneville and the building of what is now one of the largest chocolate factories in
the world.
John Cadbury retired in 1861 handing over the business to his eldest sons Richard
and George. It is to their leadership that the success of the enterprise is owed as the
company prospered.
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OBJECTIVE OF THE STUDY
➢ SWOT analysis.
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RESEARCH METHODOLOGY
Cadbury India ltd. is which is marketing products having different brands. Thus a
survey method of marketing research is essentially exploratory in nature.
Marketing research has its importance not only for consumers market but also it
survey effectively to the producer of goods and services. The use of marketing
research in consumer market may be explained on the basis of following services
rendered by it.
2. It indicates the present, future trend of Industry and point out how the company’s
affairs are being turned up.
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OBJECTIVE OF STUDY
▪ The objective of the research is to find out the consumer preference and
perception of Cadbury chocolates in Delhi. .
SCOPE:
The study is restricted to South Delhi only. Efforts have been to have consumers
surveyed in South Delhi.
DATA COLLECTION:
Data collection is most important part of research because the research is based on it.
There are several ways of collecting data which differs considerably in terms of cost,
time and other resources at the disposal of the researchers.
The data collection method for this research work is from primary source as well as
secondary. The survey is carried out through a non probability convenience sampling
in Delhi through a structured questionnaire.
TYPE OF DATA
1) Primary
2) Secondary
Primary Source: Source from where first hand information gathered directly are
called primary source and thus information collected is called Primary data.
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Primary Data: - The techniques available for collecting primary data are:
▪ Interview method
▪ Observation method
▪ Questionnaire method
Secondary Source: The source of information already gathered for some other
purpose are available is called secondary data, with regard to my study secondary
sources of my study where records of the company, magazines and papers.
The Secondary data was collected on the basis of requirement, conveniences and
reliability of the data.
Out of these I have chosen questionnaire method to collect the data because of low
cost, free from the bias of other interviewer and respondent.
This method of data collection is quite popular particularly in case of big enquires,
private individuals, research workers, private and public organizations and even is
adopting it by governments. In this method I want to the retailers, personally and
asked them to fill the questionnaire.
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MERITS OF THIS METHOD
1. Low Cost
2. It is free from the bias of the interviewer because answers are in respondent’s
own words.
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BRIEF REVIEW OF RESEARCH
METHODOLOGY
SAMPLING PLAN :
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COMPANY INFORMATION
Fifty years ago, the real taste of chocolate as we know it today, landed on Indian
shores. An event that carried forward the entrepreneurship and vision born as far back
as 1824, when John Cadbury set up shop in Birmingham (UK) to sell among other
things - his own cocoa concoction. From these modest beginnings emerged Cadbury
Schweppes - that is today the leading manufacturer of confectionery and beverages in
the United Kingdom. A company that has its presence in over 200 countries
worldwide and has made the name 'Cadbury' synonymous with cocoa products in
countries across the planet.
This is the brand that came to India in 1947 - to a nation that was in its infancy, a
market that was ready for the world and a people that were open to new ideas, new
products.
Over the years, the company attempted several diversifications in food category,
albeit with little success. In 1986, Cadbury forayed into biscuits with Cadbury Butter,
Glucose and Bournvita brands. The business however, could not take off and was
discontinued 3-4 years later. In 1989, Cadbury diversified into ice creams with
Dollops and Lopstop brands, which were sold off to Brooke Bond in 1994.
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Group Cadbury Schweppes is one of the leading global companies in beverages and
confectionery businesses. It has operations in over 190 countries.
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ITS LEADING GLOBAL BRANDS ARE:
Beverages - Crush, Dr Pepper, And Indian Tonic Water, Canada Dry, Crystal Light.
Confectionery/ chocolate - Dairy Milk, Mr. Big, Timeout, Twirl, Perk, Sour Patch,
Hazel Nut, Temptations, Celebration, 5 Star, Double deck, Byte, Fruits and
Nuts,Chocobix.
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PLANT LOCATIONS:
Cadbury’s manufacturing operations started in Mumbai in 1946, which was
subsequently transferred to Thane. In 1964, Induri Farm at Talegaon, near Pune was
set up with a view to promote modern methods as well as improve milk yield. In
1981-82, a new chocolate manufacturing unit was set up at the same location in
Talegaon. The company, way back in 1964, pioneered cocoa farming in India to
reduce dependence on imported cocoa beans. The parent company provided cocoa
seeds and clonal materials free of cost for the first 8 years of operations. Cocoa
farming is done in Karnataka, Kerala and Tamil Nadu. In 1977, the company also
took steps to promote higher production of milk by setting up a subsidiary Induri
Farms Ltd near Pune. In 1989, the company set up a new plant at Malanpur, MP, to
derive benefits available to the backward area. In 1995, Cadbury expanded Malanpur
plant in a major way. The Malanpur plant has modernized facilities for Gems, Éclairs,
and Perk etc. Cadbury also operates third party operations at Phalton, Warana and
Nasik in Maharashtra.
BUSINESS:
Cadbury dominates the Indian chocolate market with a 65% market share. Besides, it
has a 10% market share in the organized sugar confectionery market and a 25%
market share in milk/ malted foods segment.
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For more than five decades now, Cadbury has enjoyed leadership position in the
Indian chocolate market to the extent that 'Cadbury’ has become a generic name for
chocolate products. Cadbury has leading brands in all the segments viz bars (Dairy
Milk, Crackle, Temptations), count lines (5 star, Milk Treat), panned confectionery
(Gems) and wafer chocolates (Perk), éclairs (Cadburys' Éclairs), toffees (English
Toffee).
Cadbury entered the hard-boiled sugar confectionery market with the launch of
Googly in 1996. In 1997, the company launched a coffee based sugar confectionery
product Mocka. Cadbury has a 4% market share in the confectionery segment, largely
contributed by Éclairs. Other confectionery brands such as Gollum, Frutus, Nice
Cream, etc launched in the last two years did not receive a good market response and
the company has decided to minimize focus on those brands. Éclairs was relaunched
with unique packaging in cartons during 2007.Recent global acquisition of Adams,
brands like Halls, Clorets & many other international brands are already a part of
Cadbury.
Cadbury’s Bournvita is the leading brand in the brown drinks segment of milk/ malted
food products. Overall share in the malted food drinks market is estimated at 15%.
Brown drinks earlier positioned as taste enhancers were losing market to white drinks
during the last few years. Cadbury relaunched Bournvita with a new formulation and
advertising campaign positioning it on the health benefit platform to compete with
white drinks. The brand was relaunched in the South – the largest food drink market
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in the country, during 2007. Bournvita sales registered a 12% growth in value terms in
2007 to Rs, contributing 24% to total turnover.
DISTRIBUTION
STRATEGY
Increasing the consumer base by focusing on the twin proposition of affordability and
availability is being followed to drive future growth. Small affordable priced packs
have been launched, which have helped improve penetration. Also advertising for
chocolates is aimed at changing consumer perception and eating habits by creating
new reasons for consumption.
Excise duties: Changes in excise levied on malt and chocolate influences end product
prices and thereby volume growth as well as margins.
Changes in custom duties and foreign exchange fluctuations, as 20% of raw material
is imported.
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Competition from MNC’s like Nestle as well as imported brands. Increasing
competition puts pressure on advertisement budget and margins. However on the
positive side, it helps in expanding the market.
The study showed that on any given day, people who had eaten Cadbury Dairy Milk
that day were significantly happier than those who had not. The findings also prove
that the more routinely you eat chocolate, the happier you feel: those who ate
chocolate every day were happier than everyone else, and significantly happier than
those who ate no chocolate at all. Those who ate chocolate 'at some time today' were
significantly more likely to be happy than those whose last bite of chocolate was
'yesterday or before'.
Participants in the weeklong study were each assigned to one of three study groups.
69 per cent of the pilot study group 'A', who had to eat at least one 49g bar of Cadbury
Dairy Milk each day, said they felt 'happy' when asked to describe their mood. By
contrast only 41 per cent of group 'C', who were not allowed to eat any chocolate at
all, said they felt 'happy'. People in-group 'B' could choose whether or not to eat
chocolate but even so only 64 per cent of them reported that they were 'happy'.
• The mood-enhancing effects of chocolate last at least several hours, which is a lot
longer than most scientists have thought up to now.
• Again, contrary to expectations, men and women did not differ significantly in the
effect that chocolate had on their mood. Depriving women of chocolate did have a
- - 20 - -
slightly greater negative effect than depriving men of chocolate, but this
difference was not statistically significant.
• Surprisingly, relationship difficulties did not make people more likely to consume
chocolate. The study also challenges the idea of he so-called Monday blues as the
day of the week did not affect mood or chocolate consumption.
He explains "We started with the hypothesis that chocolate has a more significant
influence on people's mood or emotional state than other foods, based on a popular
mythology of chocoholics, chocolate 'highs' and chocolate cravings. We asked a
neuroscientist, Dr. Adrian Owen, of the MRC Cognition and Brain Sciences Unit,
Cambridge, to survey the relevant scientific literature. The conclusion of this report is
that, so far, neuroscientists have been unable to explain fully chocolate's apparent
mood-enhancing properties.
Dr. Dylan Evans continues: "Brain imaging techniques such as magnetic resonance
imaging (MRI) show that chocolate has powerful sensory qualities - taste, smell and
texture - which activate 'pleasure centres' in the brain. These effects can be found to
some degree in other foods, when a sensation of pleasantness is experienced. The
intense effects of chocolate on these parts of the brain, however, is most similar to the
effects of listening to pleasant music and receiving a surprise reward of money -
which also seem to share chocolate's ability to enhance our mood. The particular
sensory qualities of chocolate, therefore, seem to activate the same parts of the brain
associated with other mood enhancing experiences. We wanted to investigate in more
detail chocolate's mood enhancing quality and its emotional significance. The
simplest way to do this is to ask people."
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HIEARACHY OF CADBURY INDIA LTD.
Chairperson
Chairman
Vice chairman
Managing director
Director
General Manager
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SOME CADBURY'S PRODUCT
TEMPTATIONS
Cadbury uses blue background with golden inscription, which adds on to the visual
appeal, the blue is then margined by a contrasting golden wave line and again a
contrasting blue Temptation, which then draws down to the color of the flavor being
represented as well as chocolate flakes and the flavor, is displayed.
The basic division has been 20% Cadbury brand visibility, 20% Temptation visibility
and the rest for the flavor and impulse appeal.
The back of the packing uses the space for content description, trademarks and
standards pricing dates etc.
The chocolate is wrapped in foil to protect it from moisture and minimize temperature
fluctuation effects.
When Cadbury Dairy Milk chocolate was first introduced in the early 1900s it made
an immediate impact quickly becoming the market leader. The success story has
continued. It is still the top selling chocolate brand in the country and the Cadbury
Mega Brand's broad family of products today has an international retail value
approaching US$1billion.
As an international brand Cadbury Dairy Milk carries the same distinctive image all
over the world. Wherever you buy a bar of Cadbury Dairy Milk the pack design will
be exactly the same, only the language will be different.
The famous slogan "glass and a half of full cream milk in every half pound" with
the picture of milk pouring into the chocolate bar, is one of the all-time greats of
British advertising.
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The first two additions to the Cadbury Mega brand family were Fruit & Nut in 1928
followed by Whole Nut in 1933. The family has since been extended and there are
now 10 varieties of Cadbury Dairy Milk bars in the range. You can see more details
by clicking on the links at the left hand side of this page.
In addition to Cadbury Dairy Milk, Fruit & Nut and Whole Nut are two of the best
loved varieties of the Cadbury Mega-brand. Australia, for example, offers 23 varieties
including Snack, Caramello and Breakaway.
We can enjoy Dairy Milk in many different ways including as miniatures, snack size
multiple packs, treat size in bags, pocket packs, standard bars, 125g, 200g or 400g
bars (for sharing, of course!), or as giant 1kg or 1.25kg bars. Cadbury Dairy Milk is
enjoyed in over 30 countries.
BYTES
Bytes is the first foray of Cadbury into the rapidly growing Bagged Snack Category of
Snacking. Largely dominated by Salted products, the lead brands in this category
includes Lays, Cheetos, Kurkure, Picnic, Uncle Chips, Peppy etc. In this arena of
salted products, Bytes positions itself as a unique offering of wafer biscuits filled with
chocolate.
GEMS
The saying "Good things come in small packets" has been proven right many a times
and it couldn't have been truer for the pretty chocolate buttons called Gems. Who can
forget the unique, brightly colored chocolate buttons with crispy shells, encased in a
pack that's as colorful as the product itself? Unrivalled in all these years, Cadbury
Gems has captured every kid's fantasy for almost 4 decades and the adults are not too
far behind. Little wonder that Cadbury Gems, the brand that came into India in 1968
is still going strong.
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TARGET AUDIENCE
Teenagers 13-19 yrs in the SEC A/B/C Classes and Children 8-12 yrs old in the SEC
A/B/C Class
PRODUCT OFFERING
The basic product offering is baked wafers that are filled with Cadbury Chococream.
The manufacturing process involves making of the wafer, preparation of rolls of the
wafer filled with the cream, and then making pillows from these rolls. The wafers thus
formed are filled into polybags and in order to keep the product fresh and crisp, the
bags are flushed with nitrogen gas.
There are 2 SKUs being marketed today - a Rs. 5 SKU which weighs 18gm and a Rs.
10 SKU which weighs 40gm. Benchmarked to other bagged snacks in the market,
Bytes provides the largest weight, and is unmatched in its unique chocolate taste.
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THE CADBURY FAMILY OF BRANDS
Research data shows that the Cadbury brand equity is highly differentiated from
other brands with consumers. Brand equity is the value consumer loyalty brings to a
brand, and reflects the likelihood that a consumer will repeat purchase. This is a major
source of competitive advantage. The Cadbury umbrella brand has endured in a
highly competitive market, and has established the link, in the mind of the consumer,
that Cadbury equals chocolate. An umbrella brand is a parent brand that appears on
a number of products that may each have separate brand images. The Cadbury
umbrella brand image consists of four icons namely the Cadbury script, the glass and
a half, dark purple color and the swirling chocolate image. These elements create a
visual identity for Cadbury that communicates the ultimate in chocolate pleasure.
Consumer research is conducted regularly so managers can learn more about how the
market perceives the brand. This research has confirmed that the swirling chocolate
and ‘glass and a half’ are powerful images. Both clearly portray a desire for chocolate
while the half full glass suggests core values of goodness and quality.
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that carries Cadbury branding. The relationship between Cadbury and individual
brands is symbiotic with some brands benefiting more from the Cadbury relationship,
i.e. pure chocolate brands such as Dairy Milk. Other brands have a more distant
relationship, as the consumer motivation to purchase is ingredients other than
chocolate, e.g. Crunchie.
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IDENTIFYING BRAND VALUES
We are all consciously and unconsciously affected by brands in our daily lives. When
we go to purchase a pair of training shoes we rarely make a purely practical decision.
There are numerous branded and non-branded options available. For many people, a
pair of trainers must sport a brand logo because that will communicate certain values
to other people.
Branded products command premium prices. Consumers will happily pay that
premium if they believe that the brand offers levels of quality and satisfaction that
competing products do not. The most enduring brands have become associated with
both tangible and intangible properties over time. The most successful provoke a
series of emotional or aspirational associations and values in our minds that go way
beyond the physical product.
Cadburys has identified these brand values and adjusts its advertising strategies to
reflect these values in different markets. Its strategy can vary from increasing brand
awareness, educating potential customers about a new product, increasing seasonal
purchases, or as is currently the case in the ‘Choose Cadbury’ campaign to highlight
the positive emotional value of the brand.
After identifying brand values the marketing manager must match these to the specific
market. For this reason it is important to identify possible segments that have specific
needs, and to highlight appropriate brand values that will promote the brand in that
market.
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CONSUMPTION & CONSUMER
In Ireland, Cadbury has identified three key consumer segments of ‘impulse’, ‘take
home’ and ‘gift’. These segments reflect consumers’ decision-making processes. For
example, impulse purchases are typically products bought for immediate
consumption, e.g. single bars. Take Home confectionery is generally bought in a
supermarket and is most often driven by a specific need. A specific need or usage can
be an occasion, e.g. ‘I need something for the lunchbox’. Here consumers make more
rational decisions, e.g. brand influence, price/value relationship. These areas are
further subdivided, for example the ‘gift’ sector comprises special occasions
(birthdays, Christmas, etc.) and token or spontaneous gifts. If marketers successfully
identify and isolate consumer segments in this way, it becomes easier to target
products and advertising in a more meaningful way to increase consumption
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NEW PRODUCTS REFLECTING CONSUMER LIFESTYLES
New product development has played a key role in developing markets as brands
strive to offer something to a consumer that is truly different. We take a crumbly flake
texture or honeycomb for granted but, when introduced, they were remarkably
innovative. Changing lifestyle patterns; eating on the go, and impulse snacking has
and continues to play a pivotal role in the confectionery market. Continued snacking
or ‘grazing’ has replaced traditional mealtimes for many people.
The Cadbury product range addresses the needs of each and every consumer, from
childhood to maturity, from impulse purchase to family treats. For example an
analysis of the ‘gift’ sector highlights the importance of developing innovative
products to address specific markets. Cadbury designs products to coincide with
Christmas, Easter, Valentine’s, Mother’s and Father’s Day and other calendar
landmarks. Cadbury use marketing strategies such as the ‘Choose Cadbury’ strategy
to encourage a link between chocolate and these events ensuring there is a Cadbury
chocolate product suitable and available for every occasion.
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WHY ADVERTISING IS USED TO PROMOTE A BRAND
The confectionery market is full of brands that need to fight for our attention. The role
of advertising is to keep a brand in the mind of the consumer.
We are constantly presented with countless brand images and
messages on a daily basis. During the lifetime of a brand,
companies will develop marketing strategies that communicate
brand identity and core values to gain our attention. In order to
keep its product competitive and contemporary, these
messages need to change over time.
Cadbury provides one of the most successful examples of how an advertising message
can be modified from one campaign to the next to attribute new values to a brand
giving consumers more reasons to buy Cadburys. Healthy brand equity or brand
strength is critical in an impulse-driven, competitive market. Advertising plays a key
role in maintaining this strength. Cadbury employs all types of advertising from the
internet to posters, from TV, radio and cinema to print media. This same creative
message is then communicated through point of sale, merchandising, package design
and public relations.
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THE ‘CHOOSE CADBURY’ MARKETING STRATEGY
The ‘glass and a half ’, corporate purple and flowing script has become synonymous
with Cadbury: these design elements have been used to great effect in developing the
connotation of goodness that this imagery suggests. In the 1980s another vital
attribute - taste - was highlighted. Regardless of national preferences about how
chocolate should taste (e.g. dark chocolate is traditionally more popular in Europe
whereas Australians prefer creamier milk chocolate) the implication was clear -
Cadbury offers taste and texture that appeals to all. In 1990s further emphasis was
placed on ‘taste’. The strap line ‘Chocolate is Cadbury’, which was built upon
previous brand values and allowed Cadbury to stake its claim and taking ownership of
the word ‘chocolate’ and the chocolate eating experience.
Earlier this year, Cadbury introduced a new global marketing strategy called ‘Choose
Cadbury’. This strategy came about as a result of extensive research into consumer
behaviour and perception. It is a campaign that perfectly illustrates how a brand can
evolve and how different messages can be communicated without losing the core
strength and brand values that are already established.
The classic icons have played a major role in establishing the look and feel of how
Cadbury’s advertisements should look through successive campaigns. These key
‘look and feel’ icons were heavily researched to ensure that the messages they impart
are always relevant to the Cadbury consumer. In depth customer research is
conducted to ‘test’ these messages. Research results confirmed that color recognition
of dark purple is strongly associated with Cadbury. Its logo is readily recognized and
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scores a ninety six per cent recognition level alongside other global brands such as
Coca Cola and McDonalds. The glass and a half symbol, which plays a key role in the
current ‘Choose Cadbury’ strategy, continues to communicate the quality and superior
taste of Cadbury’s chocolate.
The central message of the ‘Choose Cadbury’ strategy hinges on the established glass
and a half symbol. Is the glass half full or half empty? Cadbury suggests that the glass
is always half full appealing to our emotions. Therefore, in choosing Cadbury we are
taking a decision to embrace the positive. This optimistic metaphor is, according to
consumer testing in the UK and Australia, well understood amongst consumers.
In this ‘Choose Cadbury’ campaign, the product ingredient of milk has been elevated
from a practical, rational platform to an emotional one Cadbury can deliver on
optimism, happiness and a feel-good factor. If a brand can do all this, the decision to
purchase this brand over all other chocolate brands seems to be logical and inevitable.
The ‘Choose Cadbury’ strap line is a call to action designed to motivate us. We are
not expected to simply absorb the advertising message; we are being called upon to
make a conscious purchase decision. We are reassured that the Cadbury product will
remain unchanged, (Cadbury is Chocolate and it still tastes good), but we are given
more reasons to remain brand loyal (Cadbury is Chocolate – feels good i.e. positive,
uplifting, mood enhancing, providing enjoyment and happiness). At no stage in the
evolution of the Cadbury brand has there been as much reliance on taking ownership
of the emotional side of eating chocolate as there is now. Owning the emotional
territory for chocolate helps Cadbury to elevate its product in the mind of the
consumer. With the ‘Choose Cadbury’ campaign consumers are being offered both
logical and emotional reasons to buy a Cadbury product as a first option on every
occasion.
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ADVERTISING DILEMMAS
• Products which are different from each other create an advertising problem. For
example, a successful advertisement for 'a finger of fudge' may boost sales of
Cadbury's Fudge, but is unlikely to lift sales of Cadbury's Curly Wurly.
• One approach is to promote the firm as a whole, that is, raise awareness of
Cadbury's, in the hope that this in itself will boost sales across Cadbury's product
range. However, like a pantomime cast's attempts to throw Cadbury's products to
its audiences, a catch-all approach can be rather hit or miss and may produce a
poor return.
• Obtaining good returns from advertising has been made harder by the
fragmentation of television audiences. When only one UK television channel
showed advertisements, advertisers knew that their efforts would be seen by a
huge audience and might well become a talking point nationwide. Nowadays a
firm knows that to reach a high proportion of potential customers it will need to
place its advertisement with several TV channels. This is expensive.
• In line with its adding-value approach, the challenge to Cadbury promotes more
than one product at once but without the large financial outlay normally associated
with such a venture? A team was put together and was asked to produce a
convincing proposal.
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Constructive thinking
From within Cadbury came an interesting, attractive proposal based on some solid
propositions:
• The company has 'a place where chocolate is made' - Cadbury World - that is a
huge attraction to thousands of visitors each year. It is an asset that can be
further developed. Out of this line of thinking came a new Cadbury creation:
Cadbury LAND.
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PROMOTIONAL STRATEGY
To step-up chocolate penetration in India across strata, the Rs 538.18- crore Cadbury
India Ltd has relaunched 5 Star with a new brand proposition of “non-stop energy”,
an extension of the earlier proposition of “an energy bar”.
In an attempt to leverage the brand proposition amongst youth — who form the core
target segment — the company plans to undertake a series of on-ground promotional
activities combined with extensive outdoor advertising and television campaigns.
The new television commercial shows a towering skyscraper as the montage. From
there the camera zooms straight to a mid close-up of a teenaged girl who is anxiously
awaiting the arrival of her boyfriend. As the boyfriend gets delayed, the scene gets cut
to the next shot where the girl rushes into a lift. In a series of quick continuous visual
cuts the girl is displayed as going from one floor to the other. Every floor the girl
opens the door she is sure to spot her boyfriend ready to welcome her with a bouquet.
In the parting scene the girl finally gives up and the boy hugs her and the lovers unite
for a romantic retreat. The camera immediately zooms to a close-up of the 5 Star with
its striking new package.
As an effort to communicate the core ethos of the brand to a broader youth audience,
the company has also tied-up with youth Websites such as www.hungama.com,
www.indya.com and www.cricinfo.com as a part of the promotional strategy.
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The company also plans to consolidate its penetration strength by means of hardcore
distribution-driven product development strategies. The distribution networking too
forms a part of the integrated brand development plan. The impulse market is growing
at the rate of around 4 to 6 per cent annually.
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SWOT ANALYSIS OF CADBURY INDIA LTD.
STRENGTHS:
The chocolate industry is not affected by any slump of recession in business activity.
Chocolate are such kinds of product, which can be consumed anytime. Children, teen,
adults anytime one can have it
❖ Cadbury is the most popular brand in India.
❖ Cadbury is enjoying maximum market share in the Indian market.
❖ Taste of Cadbury is better than other brands.
❖ Advertising of Cadbury is more aggressive than other brands.
❖ Inclination of new generation is towards Cadbury more than other brands because
of celebrity endorsing.
❖ Writing style of Cadbury is more attractive.
WEAKNESS:
❖ Perishable in nature.
❖ With regard to price
❖ With regard to price.
❖ Proper storage required.
❖ Many competitor, so extensive sales promotion technique required. Cultural
barriers.
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OPPORTUNITIES:
The chocolate industry is a sunrise, one yet to see its saturation level. The variety
offered in terms of chocolate type and evens packaging and probably at some later
stage in terms of brands, makes chocolates a lucrative offer for the consumers at
large.
❖ The market growth rate is very high.
❖ The punch line of Cadbury is at the top of mind among customer.
❖ Large middle class family.
THREATS:
The existing player in the industry may feel threatened by entry of prospective
competitors, by the MNC’s or big Indian players. One of the major problems that are
faced by the chocolate industry is the high price of cocoa.
❖ Health problems especially teeth.
❖ Local players.
❖ High cocoa prices.
- - 39 - -
COMPETITIVE ANALYSIS
Indian chocolate has three major market players Cadbury India LTD. dominating the
market by capturing 71% of the markets share, followed by Nestle having 23% of
markets share, Amul having a niche market of 4% and remaining 1% was other
markets.
Cadbury India ltd face the tough competition from Nestle however when viewed in
light of the historical growth rates in earnings, Cadbury India appears to posses a
superior track record. Over the past three years to 2007, Cadbury India has definitely
outpaced Nestle India, both in profit and sales growth.
Since 2007, Cadbury India has managed a compounded annual sales growth of around
18 per cent and an impressive profit growth of around 40 per cent. In contrast, Nestle
India's sales have grown at a sedate 4 per cent while profits have grown at around 18
per cent. Nestle India's sedate growth is partly to the cyclically of its coffee business.
If one goes entirely by the track record of the past three years, Cadbury would deserve
a better share than Nestle. However, the question is one of whether Cadbury will be in
a position to sustain its impressive growth rates of past three years.
- - 40 - -
MARKETING OF CADBURY BRAND
PRODUCT
Cadbury’s range of Chocolate is the premium brand under the product range of
Cadbury’s Chocolates. Its an assortment of a range of raisins, fruits and other flavours
with a Chocolate quoting, the range are a translation of different up market consumer
preferences into a premium range of flavored chocolates. The products has been
specifically placed in the segment of assorted and gift chocolates, gives the consumer
the goodness of chocolate with flavours of honey, black forest, cashew etc. and its ad
says “Too Good to Share”.
PACKAGING
During the Market Research I found out that the packaging is also one of important
reason buyers consider before the buy chocolates. I found out that all the big players
keep on changing there packaging after every six month or they change it according to
festivals and other different occasions. This is due to the fact that most of the
chocolates buying decisions are impulse momentary decision when one sees a
chocolate in a shop then he makes an on the spot decision to buy or not to buy. Most
of the people decide to buy the chocolate only if they find the packaging attractive.
So, what the companies benefit the most by changing the packaging every 6-month is
that, the chocolate doesn’t go stale. It always looks like a new product. Like in case of
Celebration only after seeing the packaging of chocolate buyers feel tempted to buy it.
- - 41 - -
PRICE
2. PERK Rs. 10
4. CHOCKI Rs10
5. GEMS Rs. 5
6. BYTES Rs. 10
7. TEMPTATION Rs. 35
- - 42 - -
PROMOTION
ADVERTISING
Father-daughter duo plan a surprise... they keep a pack of Cadbury Celebrations next
to the phone "Sunoh, tumhara phone hai", informs the husband as she rushes to
attend it...
but there's no one on the line. Her eyes wander to the pack of chocolates. She walks
back and nonchalantly Announces that it was Usha auntie's call. Perplexed the
husband...
goes back to the phone, only to find another pack of chocolates for him.
- - 43 - -
TEMPTATION STORY BOARD – 2
The man gives her a sly look..and slides the newspaper over a bar of Cadbury
Temptations, shielding it from her eyes.
He punches in their phone number on his mobile phone resting by the side table. As a
shrill ring pierces the silence, the woman..springs up to take the call. While she is out
of sight, he unwraps the chocolate and digs his teeth in, relishing the taste.
Cut to the other side of the room, she is seen enjoying her bar of Cadbury
Temptations. As he sneaks up from behind and... ...confronts she finds some
chocolate smeared across his cheek as well. Both get caught at their own game.
Temptation Story Board - 3
- - 44 - -
A couple lounging in their drawing ... to miss your magic that's in your
room. In the background a jazz score eyes." The husband asks, "Have you
drawls, "I, I must be blind... seen my glasses?"
"Honey your glasses", the wife calls out "Found it", he goes just as he finds
after finishing her chocolate bar his bar of Cadbury Temptations.
- - 45 - -
SALES PROMOTION
I. DIWALI PROMOTION
▪ Gift Pack with special packing was launched at various retail counters as well
as websites at a special mrp of Rs100.
- - 46 - -
PLACE
Range of Chocolate can be bought from almost any where; Cadbury’s has placed the
chocolates through its huge all India networks of Distributor & Retailers apart from
that the range can be bought on line from a number of websites including its own.
The Placement of has been keeping in mind the perishable nature of chocolates, which
need a special freezer to survive which is provided by the company to the retailers.
The shelf space & visibility is very important to achieve the targeted off take for the
company therefore the freezer is almost always visible at retailers selling Cadbury’s
range also it can be stated that is almost always visible.
- - 47 - -
PURCHASE DECISION BEHAVIOUR
The market today is flooded with chocolates of various companies’ brands. Most of
these chocolates come in different weights and sizes. The buyer has a very large range
to choose from. Different buyers have different reasons for there particular choice.
Because of the large number of chocolates in the market it becomes very difficult to
find out exactly why people buy a particular chocolate. The best way to answer this
question is to look at how people buy?
This is how the purchase decision behaviour of the buyer. The purchase decision
behaviour doesn’t only mean what to buy? But also from where to buy?
- - 48 - -
I.) PREDETERMINED DECISION:
Predetermined decision is when the buyer is decided about the choice of what he has
to buy. This pre-determined decision of his a lot to do with Motivation, learning,
Income Group, Lifestyle, Social Class and exposure to promotional campaigns.
Each one of these factors has influence of varying degree on the purchase decision
behaviour of the buyer.
(2). Like in case of Mr. Saurabh, he buys and present chocolates to people who
they love or with whom they want to build a relationship with.
(3). Some people eat chocolates because they find it a show off kind of a thing for
eating expensive chocolates, although these people are few in numbers but
cannot be neglected.
(5). Some people eat chocolates only because they like it and for no other reason at
all; brand loyalty is the strongest among these types of buyers.
(6). Like Mr. D. K. Sharma, a retired old man eats only 5 Star and very often
because he likes it. He says he is addicted to it and can eat it anytime
anywhere; he does not eat any other chocolate.
(7). This case is very well identifiable with the self actualization needs in the
Maslow’s theory of motivation.
(8). Here Mr. B. K. Singh, is not concerned with what people think of him. He eats
the 5-Star unconcerned for views and perceptions about him just because he
enjoys a 5-Star.
- - 49 - -
(9). Learning: Previous experience about the chocolate plays a very important
role in pre-determined decisions of a buyer. Any repurchase, acceptance,
rejection of a chocolate or a related brand will have an effect on a person’s
decision to buy a chocolate.
(10). Lifestyle and Social class: Lifestyle and social class also play a very
important role in a buyer’s decision to buy a particular chocolate. This is
where positioning becomes a very important issue.
(11). Income Group (disposable money): This is one of the most important and an
obvious reason for a buyer’s predetermined decision. A buyer is going to buy
a given chocolate in a given price range only when he has that much money to
spend (disposable money) or that his income is so much that he can justify the
purchase.
Point of purchase decision is where the buyer decides about the product on the spot.
These on the spot decision are basically dependent on:
1. Visibility
2. Packaging
3. Price
- - 50 - -
(1). Visibility: The product should be visible so that the productive buyer can be
attracted and induced to buy.
(3). Price: Price is another very important factor. Some people decide on buying a
particular chocolate because they think its price to be good according to the
product, some want to buy expensive chocolates. So they go for the ones, which
cost lesser. These decisions are dependent to a great extent on motivation and
disposable money. This is why companies have chocolates in different weights
and in different price slots.
III.) INFLUENCERS:
Influencer is someone who can influence to buy a particular chocolate. Influences can
be personal and non personal (non-living).
a. The shopkeeper – The shopkeeper acts as a very big influencer, he can make your
decision to buy a particular chocolate by stressing on its strength or break your
particular decision by discouraging your decision.
b. Others (Parents, Friends etc.) – These are the influencers like parent or friends
who can accord their perceptions, influence a buyer’s decision.
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PRODUCT Pre-determined PLACE
decision
Point of
Purchase
Decision
Personal
Influence
NonPersonal
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- - 53 - -
FINDING AND ANALYSIS
1. INTERVIEW
This study was conducted to find out why people buy a particular (Cadbury)
Chocolate. The people undergoing the test were divided into 7 categories.
1. School Students
2. College Students
5. Housewives
6. Elderly
7. Businessmen
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School Chocolate Picked Up Reason
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Desk Work Professional Chocolate Picked Up Reason
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- - 76 - -
PIE CHART SHOWING PERCENTAGE SHARE OF CADBUY'S
PRODUCT
80
70
60
EXCELLENT
50
GOOD
40 BAD
30 NEUTRAL
20
10
0
CADBURY
29%
44%
12%
7% 8%
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BAR GRAPH SHOWING BRANDS OF CHOCOLATE
CONSUMERS LIKE MOST.
90
80
70
60
50
40
30
20
10
0
CADBURY NESTLE AMUL OTHERS
Series1
4% 2%
23%
71%
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BAR GRAPH SHOWING SATISFACTION LEVEL OF
CONSUMERS WITH REGARD TO QUALITY
90
80
70
60
50
Series1
40
30
20
10
0
CADBURY NESTLE AMUL OTHERS
90
80
70
60
50
40
30
20
10
0
CADBURY NESTLE AMUL OTHERS
HIGH REASONABLE
- - 79 - -
GRAPH SHOWING DIFFERENT FACTORS AFFECTING
PURCHASE BEHAVIOR OF CONSUMERS
100% 90%
80%
80% 75%
70%
60%
40%
20%
0%
TASTE PRICE QUALITY AVALIBILITY
RESPONSE
100
95
90
85
80
75
CADBURY NESTLE AMUL OTHERS
YES NO
- - 80 - -
GRAPH SHOWING AVALIABILITY OF DIFFERENT BRAND OF
CHOCOLATE TO CONSUMERS
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
CADBURY NESTLE AMUL OTHERS
100% 95%
90% 85%
80%
80%
70% 65%
60%
50%
40%
30%
20%
10%
0%
CADBURY NESTLE AMUL OTHERS
Series1
- - 81 - -
- - 82 - -
CONCLUSION
Cadbury’s have tried to position its chocolates as a light snack between meals
(PERK), also targeted some of its chocolates for gift purpose (DAIRY MILK)
specially.
There have been efforts to create differentiation through packaging, flavor additions
and advertising but apart from the structure i.e., the shape, size and packaging there
hasn’t been much difference in the product value delivery.
Through survey we found that people like to see their ideal personality in
advertisements.
Through survey we come to know that Cadbury has a good name and reputation
because of its existence in the market for so many years and has a very good potential
in the market.
Cadbury has an excellent taste, quality & packaging and its future path is very bright.
Cadbury chocolate is easily available to consumers and it has maximum market share
in chocolate business.
- - 83 - -
- - 84 - -
LIMITATIONS
❖ Because of time constraint sample size was the scope of this project is limited to
areas in New Delhi only.
❖ The project had scope for future research, which was beyond my resource due to
time constraint and work pressure.
❖ Some were biased towards their brand, which might not be giving them good
service.
❖ Some times even if the retailers were not using Cadbury but he used to say that the
brand he is using is Pepsi because of low awareness level of other brands.
- - 85 - -
- - 86 - -
SUGGESSTIONS
Cadbury can improve on their brand by adding some new flavours as well as changing
its packaging.
Cadbury can also capture a large market by lowering its price. By some price
reduction and keeping some small gifts likes Tattoos, Small Cars etc. they can
also target kids.
Cadbury can also improve by giving new shapes and different appeals to
consumer. Little bit, it should improve the packaging of few brands also to
make its look attractive.
From the study it has been found that majority of the people do not have any
brand preference. The company should establish brand image in chocolate
with the help of advertisement & better service to the customers.
Cadbury can also introduce 'Buy two get one' like offers in order to gain
market share.
The frequent fluctuations in the price must be stopped as it creates bad and
unstable image in the minds of the consumer.
The company should come up with consumer schemes. They can put forth a
questionnaire is the newspaper and offer for the winners. This can help the
company in creating awareness for their products.
- - 87 - -
As Cadbury is market leader in chocolates it should protect its existing market
share by developing new product ideas, improve customer service, reduce
costs & improve distribution effectiveness. It should expand its market share
by targeting one or more competitor, new uses & users of the product.
- - 88 - -
- - 89 - -
APPENDIX
QUESTIONNAIRE
Name:
Area/Location:
Address:
Contact No.:
Untitled section
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Ques. 1 : E -mail ID102 responses
[email protected]
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- - 93 - -
Ques. 2 :Name 105 responses
Ravi Shekhar Singh
Khushboo patel
Piyush Kumar
SHUBHANGI KUMARI
Aditya Vishwakarma
Yashwant Raj Singh
Yash
Ayan kashyap
Masoom kumari
Shubham
Riya Rani
Aayn kashyap
Nisha Singh
Priya
Himanshu patel
Shivam Singh
Pratibha singh
Ramesh chandra Singh
Khushi singh
Priyansh singh
Sahadat Islam
Saurabh samrat
Shagun singh
Komal
Sonam priya
Antara choudhary
Nagmani . K Singh
- - 94 - -
suman ramani
Shalini
Shambhavi Gautam
Atul kumar
Sujeet Kumar
NKR. Singh
Anurag kumar
Sonal
Pallavi Ranjan
Pankaj bhavsar
Sangita Ranjan
Kreeti singh
Ajay Tarachandani
Shubham Raj Singh
Suruchi Singh
Vishal U Gala
Basuki Nath Pathak
Niket
Ajay Jain
Suvarn Ranjan
Alok
Sanaya
Diksha pandey
Viraj Jain
Manav Kumar Gupta
Ravi Shekhar Singh
Sneha Srivastava
Darji Bhavin
- - 95 - -
Manoj mundhada
Jossy
Shweta kumari
Darryl Pinto
Atul
Anamika singh
Neha kumari
Pramod
Anju Kumari
Shankar Sherkhane
Yogesh Kumar
Jyoti kumari
Subham
Mahesh Patil
Nishith Raj
Nikita
alison
Gourav Tripathy
AMAN GUPTA
Rupak Kumar
Suryakant
Ritu kumari
Rajendra Vibhande
Padmnabham
Gitanjali kumari
Vikram
Gautam Kumar
Harshvardhan
- - 96 - -
Rajeev Nayan
Kishor
Mitthu
Atul singh
Alok Kumar
Dharmesh Pathak
Kajal Patel
Mili
Nidhi
Gaurav kumar
Arvind singh
Himanshu Kumar
Rajveer
Birendra kr singh
Chirag Gala
Akash
Manoj kumar
View 4 more responses in Sheets
Ques. 3: Age104 responses
Copy
Below 2021 -4041 - 6061 - 801828197.7%29.8%58.7%
Below 20 8
21 -40 61
41 - 60 31
61 - 80 0
18 2
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28 1
19 1
Ques. 4 : Gender105 responses
Copy
MaleFemalePrefer not to say36.2%63.8%
Male 67
Female 38
Prefer not to say 0
Ques. 5 : Occupation 105 responses
Copy
StudentEmployeesBusiness ManHouse wifeHousewifeHomemakerHome
makerService14.3%27.6%48.6%
Student 51
Employees 29
Business Man 15
House wife 3
2
Housewife 1
Homemaker 1
Home maker 1
Service 2
Ques. 6: Qualifications105 responses
Copy
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IntermediateGraduationPost graduationMBA marketingfrom
Maharastra5th classMBA7.6%44.8%42.9%
Intermediate 8
Graduation 45
Post graduation 47
2
MBA marketing from Maharastra 1
5th class 1
MBA 1
Ques. 7: Have you ever tried cadbury chocolates before? 103 responses
Copy
YesNo6.8%92.2%
Yes 95
No 7
1
Ques. 8 :How often do you Consume Chocolate products? 105
responses
Copy
DailyWeeklyMonthlyRarelyNeverIf any one offer freethen I am
eating13.3%22.9%21.9%40%
Daily 14
Weekly 42
Monthly 23
- - 99 - -
Rarely 24
Never 1
If any one offer free then I am eating 1
Ques. 9 :Which type of cadbury chocolate products have you tried
before? 104 responses
Copy
Dairy MilkBournville5 StarPerkSilkAllAll CadburychocolatesNeverAll
brand13.5%17.3%55.8%
Dairy Milk 58
Bournville 5
5 Star 18
Perk 4
Silk 14
All 2
All Cadbury chocolates 1
Never 1
All brand 1
Ques. 10: How would you rate the taste of cadbury chocolates? 104
responses
Copy
ExcellentGoodAveragePoorNo tasted6.7%45.2%46.2%
Excellent 48
Good 47
- - 100 - -
Average 7
Poor 1
No tasted 1
Ques 11: What factors influence your decision to purchase cadbury
chocolates? 102 responses
Copy
PriceBrand ReputationPackagingHealth BenefitsTasteNot
likeTestGiftingNice TasteTemptation15.7%8.8%9.8%9.8%51%
Price 16
Brand Reputation 52
Packaging 10
Health Benefits 10
Taste 9
Not like 1
Test 1
Gifting 1
Nice Taste 1
Temptation 1
Ques. 12: How do you perceive the quality of cadbury chocolates? 105
responses
Copy
High qualityAverage qualityLow qualityNot required29.5%65.7%
High quality 69
- - 101 - -
Average quality 31
Low quality 4
Not required 1
Ques. 13: Have you ever recommended cadbury chocolates to someone
else? 104 responses
Copy
YesNoI alwaysrecommend to buyCadburychocolates22.1%76.9%
Yes 80
No 23
I always recommend to buy Cadbury chocolates 1
Ques 14 :How important is the brand reputation of cadbury chocolates
for you to purchase their products? 105 responses
Copy
Very importantSomewhatimportantNot important31.4%63.8%
Very important 67
Somewhat important 33
Not important 5
Ques. 15: How likely are you to puchase cadbury chocolates in the
future? 105 responses
Copy
Very likelySomewhat likelyNot likelyDepends on thequality of
chocolatein future35.2%60%
Very likely 63
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Somewhat likely 37
Not likely 4
Depends on the quality of chocolate in future 1
Ques. 16: Do you find the packaging of cadbury chocolates informative
in terms of product details and ingredients? 105 responses
Copy
Yes, it provides allthe necessaryinformationSomewhatinformative,
butcould be betterNo, it lacksimportant detailsI don't knowNot
relevant7.6%33.3%57.1%
Copy
Very importantSomewhatimportantNot important5.7%24.8%69.5%
Very important 73
Somewhat important 26
Not important 6
Ques. 18 : Would you be more inclined to purchase Cadbury
Chocolates if they were packaged in sustainable materials? 105
responses
- - 103 - -
Copy
Yes, it wouldpositively influencemy purchasingdecisionsNo, it would
notimpact my decisionI'm not sure7.6%17.1%75.2%
Copy
Excellent value formoneyFair value formoneyPoor value
formoneyidk5.8%65.4%27.9%
Copy
Eye- catching andappealingAverage, nothingspecialUnattractive
andoutdatedNot requiredNever noticed35.6%58.7%
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Not required 1
Never noticed 1
Ques. 21 : Which flavours of Cadbury Chocolate sdo you enjoy the
most? 105 responses
Copy
Milk ChocolateDark ChocolateWhite ChocolateFruit and NutNot
like24.8%31.4%37.1%
Milk Chocolate 39
Dark Chocolate 33
White Chocolate 6
Fruit and Nut 26
Not like 1
Ques. 22: How important is the availability of different sizes and
packaging options when purchasing chocolate products? 105 responses
Copy
- - 105 - -
4. If no, then why not?
(a) Price (b) Health conscious
(c) Taste (d) Can't say
- - 106 - -
(a) Easily (b) Not easily
(c) Rarely
13. If the price of another brand of Chocolate were reduced would you shift your
brand?
(a) Yes (b) No
Thanking You
Date:_________ ( )
Signature
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BIBLIOGRAPHY
WEBSITE:
2. Indiainfoline.com.
3. Google.com.
NEWS PAPER:
MAGAZINES:
2. Business India.
JOURNALS:
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