Professional Documents
Culture Documents
Chapter 1 INTRODUCTION..........................................................................................3
1
Table 3.3 Factors affecting Buying Behavior......................................................23
HYPOTHESES 6- Consumers are aware of the new desert line of Cadbury’s and
have tried one or both of the flavors..................................................................30
Major Findings.......................................................................................................36
............................................................................................................................ 40
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Chapter 1 INTRODUCTION
1.1 INDUSTRY SCENARIO
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with biscuit/ other snack foods. India is still far away from using
chocolates as a snack food. You need to have an offer that adds value.
At the end of the day how many Indians can afford a snack food
priced at Rs 16-17 for 50gms?
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Cadbury India ltd.
Cadbury India began its operations as a trading concern in 1947. The
first taste of chocolate was defined by Cadbury in the Indian sub
continent. The company today employs nearly 2500 people across
India.
With brands like dairy milk, gems, 5 star, Bournvita, Perk,
Celebrations, Bytes Chocki, Delite and temptations, there is a
Cadbury offering to suit all occasions and moods.
VISION:
LIFE FULL OF CADBURY
Cadbury is an organization which impacts and interacts with the
consumers.
Cadbury is present in most happy occasions in the life of the
consumer.
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Objective:
Grow shareholder’s value over the long term.
Strategy:
Create robust and sustainable regional positions in the core categories of
confectionery and beverages through organic growth, acquisition and
disposal.
Distribution:
Cadbury’s distribution network encompasses 2100 distributors and
450000 retailers. The company has total consumer base of over 65 mn.
Besides use of IT to improve distribution logistics, Cadbury is also
attempting to I prove the distribution quality. To address the issues of
product stability it has installed visi coolers at several outlets. This helps
in maintaining consumption in summer, when sales usually dip due to
fact that the heat affects product quality and thereby off-take.
Methods:
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 and eating habits by creating new reasons for
consumption.
“Cadbury in every pocket –t heir marketing strategy is aimed at
achieving this vision by growing the market, by appropriate pricing
strategy that will create a mass market and to have offerings in every
category to widen the market.”
How are Cadbury’s chocolates positioned within the impulse category?
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In real life Cadbury’s products are fighting fro share of the consumer’s
pockets. They have realized that we are facing competition not only
from chocolates but also other impulse products such as soft drinks,
biscuits, salted snacks and ice cream. To maintain the share in the
impulse market, they have to make sure that they grow in line with the
impulse market or grow faster than that. Since the share of chocolates in
the impulse category is just 6 %, they believe that opportunities are
plenty here.
Competitors:
Cadbury India drives around 65% of its revenue from chocolate
confectionary, 12 % from sugar confectionery while the balance 24%
comes from malted food drinks.
Competition from Nestle has restricted the growth of the company,
which is a market leader in the chocolate confectionery market with
around 70 % share. There are the other multinational giants including
mars and Hershey’s which are evincing interest in this lucrative Indian
market and pose a threat to the company.
Dairy milk desserts:: Cadbury’s creative launch:
Cadbury has recently launched flavors of dairy milk silk and position
perk glucose. CDM desserts offer the perfect rounding off taste, after
meal that adds special “meetha” moments to the family. CDM desserts
positions itself as the perfect after meal, with the idea “khaane ke baad
kuch meetha ho jaye”.
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1.3 RATIONALE OF OUR STUDY
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Selecting a Brand Name
A products brand personality is a description of its characteristics in
relation to the target market for the product. It assists marketers to
develop suitable advertising and promotional campaigns for the
product. In the case of Cadbury’s dream the key elements of its brand
personality were designed so that they would appeal to female
consumers seeking style, confidence, sophistication and self-
assuredness in their lifestyles. Their research found that it would
make the product stand out.
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Shape, Size & Format
Consumers also had preferences fro squared block chocolate formats
as they are convenient bite sizes. This shape has proven to deliver a
good experience.
Packaging
The packaging for Cadbury’s product was also determined by
consumer research and influenced by the Cadbury’s brand
personality. It was designed to fit with the product’s image of being
soft and indulgent and had a particular appeal among the youngster
target market. Indeed the selected colors on the packaging of a
combination of blue and white were used for their attractiveness, as
reflecting indulgence to the youth and specially female purchaser.
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NO PERCEIVED
CONSUMERS
PERCEIVED NEED
NEED
NO/INACTIVE ACTIVE
EXPERIENCE, BAD ADVERTISING
EXPERIENCE
EXPERIENCE
NEGATIVE POSITIVE
PERCEPTION PERCEPTION
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The consumer must first have a perceived need or want. After exposure,
the consumer forms an opinion about the product. This perception
becomes the reality of that product to the consumer. It is possible that
this truth could change with exposure to competitive messages from a
wide variety of sources. If however, the product is perceived, and
therefore assigned the truth, of being positive it is then evaluated as to
whether or not it fills the need or want. If it does indeed fit the need, it is
likely that the consumer will proceed to the purchase stage of the model.
In the purchase at this stage the consumer decides to purchase or not to
purchase the product. Again, there are number of variables surrounding
this decision as surround each step and decision I the model.
“Communication is the primary tool for managing perceptions to
motivate the desired behavior”
If you want the target audience to buy something you must create a
need and mange the audience’s perception so that it feels that need and
belief that the product will satiate it.
There’s a difference between manipulation and giving people both the
opportunity to express a need and the best way to fulfill that need
through products, services etc.
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2.3 RESEARCH OBJECTIVES:
The objective of our study can be summarized as:
• To assess the consumer perception and preference of chocolates
and how far they consider them as a substitute to Indian sweets.
Co- objectives:
• To compare and analyze chocolate consumption preferences across
age groups.
Background
Cadbury has launched its dessert range which has dairy milk silk, perk
glucose and fruit and nuts. These flavors are soft and smooth in taste in
order to replace sweets. Through this, Cadbury aims at capturing the
market share of the traditional mithais of India because although it is the
market leader in chocolates, in the sweets market it just occupies about
10% market share.
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Can the desserts line of Cadbury be an alternative for Indian sweets?
Marketing researcher’s problem:
To evaluate the current preferences of consumers of chocolates and to
measure their perceptions about Cadbury’s new range of dessert
chocolates.
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2. How receptive are customers to radically new recipe ideas for
chocolates?
3. How well are the customers aware of the new product?
4. What factors influence a customer’s purchase decision regarding
chocolates?
5. Will customers of Cadbury chocolates consider the product as
something that can be suitable gift for friends and family?
6. What is the likelihood that consumer’s of chocolates who have tried
the new product will make a repeat purchase?
7. How do the consumer’s of chocolates relatively view the major
brands?
8. What is the extent of differences between the preference patterns of
consumers belonging to the two broad generations of respondents?
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3.2 Type of Study:
Our study begins with the study of broad dynamics in the consumer
market for chocolates in the Exploratory phase , followed by the
determination of consumer awareness , brand preference; preference of
chocolates varieties , the likeliness of product attributes influencing
purchase decision, concluding with the acceptability of the new product
in the descriptive phase.
3.3 Data Collection Methodology;
Secondary data
An extensive research over the internet helped us in obtaining
appreciatively relevant information on the market for chocolates, how
Cadbury’s used marketing research to successfully launch its new
product. We obtained the information about the consumption trends in
the Indian market and the company’s position in it.
Primary data
We conducted a pilot survey by means of which we could enhance the
quality of our questionnaire and eliminate redundancies. Following that,
we administered the questionnaire to 100 respondents. The survey was
conducted across the northern part of India including the Delhi,
Rajasthan, Haryana and other parts.
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3.5 Sampling Plan
The plan for sampling consists of population and sample definition.
Target Population:
Elements: individuals over the age group 18 years.
Sample Size: a total of 100 responses were collected.
Sampling Unit: Adult individuals.
Extent: New Delhi, Rajasthan, Haryana.
Time: January - march 2010.
Sampling technique:
Sampling without replacement, a formal questionnaire was administered
to respondents for the purpose of collecting primary data. The
respondents were given the questionnaire either as a printed sheet or
over the internet. Wherever required, their doubts were duly clarified.
The entire exercise took us 30 days. Proper efforts were made to
generate effective efforts.
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HYPOTHESIS 1- Cadbury’s is the most preferred brand of chocolates
among Indian Consumers.
To test this hypothesis, we use descriptive analysis. We will test the
responses of respondents in favor of different brand of chocolates.
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Fig.3.1
We can see that 86% of the respondents prefer the brand Cadbury’s.
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Table3.1c Amul Brand
Valid Cumulative
Frequency Percent Percent Percent
From the above table, it is clear that only 2% people prefer Amul brand.
Statistical Conclusion
Since 86% of the consumers prefer Cadbury’s, the null hypothesis stands
accepted.
Marketing Research Conclusion
The brand preference of the consumers is a clear indication that
Cadbury’s is the most favored brand. The company should cash in on the
factor to gain maximum advantage. However, 10% of the respondents
do prefer some other/ imported brand, so Cadbury’s must consider the
global competition. This survey is mainly conducted among the younger
generations so the company should focus on the older generation also.
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Table 3.2 What would you prefer for dessert
Valid Cumulative
Frequency Percent Percent Percent
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Total 100 100.0 100.0 100.0
From the above tables we can see that ice creams are the most preferred
deserts with the frequency of 61 responses. Chocolates come next with
21 responses. It is clear from the above tables that today people do not
much prefer to have Indian sweets for deserts because only 13 out of 100
have responded favorably to Indian Sweets being their favorite deserts.
From the data gathered through the survey which was conducted among
the youth, we find that out of 100 responses, there is a strong affinity
towards Ice creams as far as deserts are concerned.
Statistical Conclusion
From the above facts, we find that people do not prefer chocolates as
deserts. So the null hypothesis stands rejected.
Mark Research Conclusion
We find that chocolates are still not considered as deserts as compared to
ice creams. This may prove to be a problem for the company.
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Though it has substituted Indian sweets as deserts but that is only among
the younger generation. There would be a blatant difference between the
two generations with respect to the choice of deserts.
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Table 3.3a Taste
Valid Cumulative
Frequency Percent Percent Percent
Valid Cumulative
Frequency Percent Percent Percent
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Table 3.3c New flavor
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Table 3.3e Price
Statistical Conclusion
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Table 3.4 Willingness
The table shows that 69% of the respondents are to an extent, willing to
gift chocolates on festivals.
Statistical Conclusion
Since 69% of the respondents might prefer to gift chocolates on
festivals, the null hypothesis stands accepted.
Marketing research Conclusion
We see that 31% are strongly in favor of gifting chocolates on festivals
and 38% people also slightly agree to the same. Only 5% of the
respondents strongly disagree with the idea of gifting chocolates instead
of Local sweets on festivals.
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This is a very good opportunity for the company to promote its products.
Hence this shows that younger generation is more comfortable with the
idea of perceiving the chocolates as gifts items.
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Hybrid variety of chocolate
We can see from the above tables that 63% of the respondents are
willing to try hybrid varieties of chocolates. 13% of the respondents are
still not sure, i.e. they are indifferent towards it. Only 245 of the
respondents have given a negative response.
Statistical Conclusion
From the above analysis, we can conclude that consumers are willing to
try hybrid varieties of chocolates. Thus the null hypothesis stands
accepted.
Marketing research Conclusion
We can see that 63% of the respondents have given a positive response
towards trial of hybrid varieties of chocolates. This is good news for the
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company as this provides the company an opportunity to make a success
out of the new desert range of chocolates. There are 13% respondents
who are indifferent. Even these respondents can be converted to positive
responders with proper advertising and sales promotion measures.
Achieving a total of around 70% respondents who are willing to try
hybrid varieties of chocolates can be beneficial to the new desert range
of chocolates introduced by Cadbury’s.
HYPOTHESES 6- Consumers are aware of the new desert line of Cadbury’s
and have tried one or both of the flavors.
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Correlations
Are you
aware of Have you
the new tried the new
desert desert
Chocolates chocolates
N 100 100
N 100 100
Statistical conclusion
We conclude that consumers are moderately aware of the new desert line
of the chocolates. It is also seen that most of the consumers who are
aware have also tried the product. So the null hypothesis stands
accepted.
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Marketing research conclusion
The awareness level is around 68% among respondents. This is not
satisfactory. The awareness level should be increased through
advertising. It is good to note that most of the consumers who are aware
have tried it. So the priority of the company is to increase awareness
levels.
HYPOTHESIS 7- Consumers like the various attributes, like taste, texture,
packaging, price and sweetness of the new line of desert chocolates.
To test the hypothesis, we have to find the likeness of respondents
towards taste and texture of the product. To test this hypothesis, we will
use descriptive statistics. We will find the frequency of positive and
negative responses.
We can see from the above table that from the 68% of people aware of
the brand, more than 89% of the respondents find it worth eating.
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Table 3.9 Price
Valid Cumulative
Freq % Percent Percent
Valid Poor 1 1.0 1.5 1.5
mediocre 9 9.0 13.2 14.7
satisfactory 22 22.0 32.4 47.1
Good 23 23.0 33.8 80.9
excellent 13 13.0 19.1 100.0
Total 68 68.0 100.0
Missin System 32 32.0
g
Total 100 100.0
Out of the 68 respondents, 85.3% of the respondents think that the
product is priced appropriately.
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Table 3.11Texture
Valid Cumulative
Freq % Percent Percent
Valid Poor 2 2.0 2.9 2.9
Mediocre 1 1.0 1.5 4.4
satisfactory 15 15.0 22.1 26.5
Good 33 33.0 48.5 75.0
Excellent 17 17.0 25.0 100.0
Total 68 68.0 100.0
Missin System 32 32.0
g
Total 100 100.0
We can see from the above data that around 95% of the 68 respondents
think that the texture of the product is good.
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Statistical Conclusion
The percentage of respondents who like the attributes is more than 85%
for most of the attributes. So the null hypothesis stands accepted.
definitely yes probably yes undecided probably not definitely not Total
We can find from the above table that out of the 68% of the respondents
who have tried the new desert chocolate, 88.23% of the people would
like to try it again.
Statistical Conclusion
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Since 88.23% of the respondents who have tried the new desert, will
once again try it, therefore the null hypothesis stands accepted.
Marketing Research Conclusion
We can see that there is a high correlation between people who have
tried the new desert chocolate and those who would like to try it again.
The company will have to explore new ways to gain new customers and
retain the existing customers.
LIMITATIONS
1) Low recall on the part of the respondents regarding the specific
attributes of the product. Since we could not provide product
sample to the respondents, we received feedback that it is hard for
an average consumer to distinctively recall the taste, texture, flavor
etc of the product.
Major Findings
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Finding 1# Ice Creams are the most preferred deserts with the
frequency of 61 responses. Chocolates come next with 21
responses and there is a close call for Indian sweets which is being
preferred by 13 respondents.
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have tried the product. So the priority of the company is to increase
awareness levels among consumers.
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SUGGESTIONS AND RECOMMENDATIONS
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There is a need to change the product attributes.
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