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A COMPARITIVE STUDY OF CONSUMER PREFERENCE TOWARDS CADBURY AND NESTLE CHOCOLATES. North Goa

PROJECT REPORT SUBMITTED TO ICFAI, IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

2009-2010

GUIDE:

SUBMITTED

BY:

Mrs .Mathala Juliet

Ms. ALPIKA .S. RAIKAR ENROLMENT No.8NBGP031

(0801215210)

INC (ICFAI National College) Porvorim Goa.

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DECLARATION ________________________ _

Hereby declare that the project report entitled “A COMPARITIVE STUDY OF CONSUMER PREFERENCE TOWARDS NESTLE AND CADBURY CHOCOLATES” submitted for the degree of Master of Business Administration, is my original work and the project report has not formed the basis for the award of any diploma, degree, associate ship, fellowship or similar other titles. It has not been submitted to any other university or institution for the award of any degree or diploma.

Place: Porvorim Date: 5 November 2009

Miss Alpika .S. Raikar MBA-III Semester

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TABLE OF CONTENTS ___________________

3

SR.

TOPIC

PAGE

NO.

 

NO.

1

ACKNOWLEDGEMENT

 

4

2

LITERATURE RIVIEW

 

5 to 9

3

INTRODUCTION

10 to 11

4

SCOPE OF STUDY

 

12

5

OBJECTIVE’S

 

13

6

METHODOLOGY

14

TO 15

7

RESULTS & ANALYSIS

16

TO 30

8

DISCUSSION OF IMPLICATION

 

31

9

CONCLUSION

 

32

10

APPENDICES

 

33

11

REFERENCES

 

34

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ACKNOWLEDGEMENT _________________ __

I would like to thank the centre head of INC Mr. Imran Ahmad for giving me the opportunity to do this management thesis. I would also like to thank my mentor and guide Mrs . Mathala Juliet for her consistent guidance and support.

I would

also

thank Mr. Chetan Hiremath for his

advice and for

providing the necessary inputs which were of great benefit to me.

Lastly I would like to thank my parents and friends Raksha Kalangutkar who motivated me and helped me complete my management thesis.

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Literature REVIEW ______________________

Literature review done to support the study –

1.

Title –To study the influence of packaging affecting brand selection in toothpaste industry. Author – C. Anandan Objective –To study the influence of packaging in brand of toothpaste. Methodology – Source of data for arriving at a conclusion is primary data. Hence the survey regarding the influence of packaging in selection of products for toothpaste was conducted at various retail outlets and some residence. Data was basically collected from housewives, students, family and shopkeepers. Data collation – Pilot test to ensure validity. Sampling- sample size of 125 out of which 70 were women and 55were men. Conclusion – Data collected fro users help to fin tune their marketing strategies for profitability and customer loyally. Reference- Brand management, vole-Ι No 3 page 45-57.

2.

T itle – Nestle v/s Cadbury Objective – To find out potential for new chocolate players To get familiar with their marketing strategies separately. To view the segments being targeted by these brands in the market. Up to what extent do the public respond to their products i.e. which chocolates are

preferred more.

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Methodology - Detailed information from both primary and secondary sources was collected and analyzed. This included:

Primary Sources

To analyse buying behavior and in order to gain an insight into the buyer need-

satisfaction level, a questionnaire was formulated and administered among 80 people. A distributor was also interviewed so as to get pertinent information regarding the most important ‘P’ of FMCG marketing – Place. Extensive interviews were conducted with retailers in the LUDHIANA area. These included pan shops, grocery shops, bakeries, departmental stores, etc. They

provided information on various facts of chocolate distribution such as Point-of – purchase material (dispensers etc.), infrastructure problems, critical informational regarding the policies of the present players in the market, etc.

Secondary Sources

A number of secondary sources of information were used. These were:

Information: Industry statistics, problems facing the industry, future outlook, etc. Also measures being adopted for cocoa production development. Internet websites Of Cadbury’s, Nestle and indiainfoline.com, askjeeves.com Extensive use of secondary information in the form of magazines/journals/newspapers clippings, such as Business World, Business Today, Business India, A&M, Brand Equity, Economic Times, etc. Sampling – random sampling was used wherein people were interviewed and questionnaire were filed around 100.

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C on clusion - The growth and expansion of the Indian chocolate market in the past has been hampered, due to stiff excise duties on chocolates (at 18 percent – while other agro based products are being charged as low as 8% and a few, even 0% excise) and non-availability of quality cocoa in the country. Also, import of chocolates has been put in the OGL category, with duties being reduced (in a phased manner). The industry has made recommendations to the Indian government to go back to the Special item list category, in order to safeguard the domestic industry. However, continuous marketing focus by the players in the market has resulted in the industry looking up like never before. These companies/brands have become much more market savvy. The Indian chocolate market is transforming and new players (Sara Lee is planning to set up base in India) are entering the market. Hence, considering the low per capita consumption of chocolates, the future of the industry seems to upbeat.

3.

Title Significant consideration in the purchase of consumer durables Author- B.S Hundal Objectives – To ascertain intensity of brand loyalty and offer useful implication for marketers. To analyze the planning of brand choice, time of purchase and choice of point of

purchase. Conclusion – the study reveled that the consumers have a preference toward particular brand of consume durables and are not ready to buy any other.

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4.

Title Use of Coercive Strategies in Purchase decisions: Relationship between influence strategies and the degree of Involvement. Objectives to find out weather coercive strategies are being used by couple (talking loudly, looking unhappy, Anger, Authority) in making purchase decision. Methodology A questionnaire was served to 100 married couples, of which 63 completely filled the questionnaires, of which 45 were usable. So the sample size was 90. Conclusion spouse decision behavior is the key to understand how families arrive at purchase decisions. It was found out that spouse do not use coercion consistently across purchase decisions. Moreover an understanding of spousal behavioral interaction in a decisions may guide marketers in designing particular communication massages.

5.

Title Research proposal on consumer decision analysis for Purchase of fruit Drinks. Author –Protik Basu

Reference-http://www.scribd.com/document_downloads/13103855?

extension=pdf&skic Objectives to determine the factors influencing the consumer decision while buying fruit drinks in the age group of 17-30 in the city of Pune. Methodology data collection methods are secondary and survey research by questionnaire.

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Sample size 100 sample were used for analysis. Analysis techniques – Factor analysis is conducted to dicerm out of the various reasons for purchasing any particular brand of fruit drink. The measurement instrument in the questionnaire was a five point likert scale. Conclusion with correlation test the attributes that were associated with consumer buying various fruit rinks and which in turn drive their purchase decision for the same were identified. In factor analysis the researcher found out 5 factors which mainly have an impact on the purchase of a fruit drink. There were 2factors which did not have any significant impact. Also, it was found out that the most preferred channel for purchase in retail stores. The most preferred SKU(quantity) is 200ml packs which could be due to convenience. The most preferred drink is Frooti followed by Tropicana and Real

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INTRODUCTION _______________________ __

In this research I have survey the product performance and buying behavior of two famous brands of chocolates– Nestle and Cadbury, which are consumed by people of all ages.

During this research I would be interacting with people of “North Goa”. After this research I would come to know how people perceives these products on the variables like price, quality, advertisement, satisfaction, taste, packaging, brand loyalty etc. I also would come to know which particular brand of chocolate is most preferred by people of different age groups.

In this research I would have to survey and find out how frequently and how much chocolate people consume, whether they buy small, big or family pack. Trend of ongoing changes in their likings would be shown in the report. In this report I would explain the entire research and facts product wise with the help of graphs and would compare both companies.

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CONSUMER PREFERENCE ________________

All marketing starts with the consumer. So consumer is a very important person to a marketer. Consumer decides what to purchase, for whom to purchase, why to purchase, from where to purchase, and how much to purchase.

In order to become a successful marketer, he must know the liking or disliking of the customers. He must also know the time and the quantity of goods and services, a consumer may purchase, so that he may store the goods or provide the services according to the likings of the consumers. Gone are the days when the concept of market was let the buyer’s beware or when the market was mainly the seller’s market. Now the whole concept of consumer’s sovereignty prevails.

The manufacturers produce and the sellers sell whatever the consumer likes. In this sense, “consumer is the supreme in the market”. As consumers, we play a very vital role in the health of the economy local, national or international. The decision we make concerning our consumption behavior affect the demand for the basic raw materials, for the transportation, for the banking, for the production; they effect the employment of workers and deployment of resources and success of some industries and failures of others. Thus marketer must understand this. Preference (or "taste") is a concept, used in the social sciences, particularly economics. It assumes a real or imagined "choice" between alternatives and the possibility of rank ordering of these alternatives, based on happiness, satisfaction, gratification, enjoyment, utility they provide. More generally, it can be seen as a source of motivation.

In cognitive sciences, individual preferences enable choice of objectives/goals. The study of the consumer preference not only focuses on how and why consumers make buying decision, but also focuses on how and why consumers make choice of the goods they buy and their evaluation of these goods after use.

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So for success of any company or product promotion it is very necessary to depart its concentration towards consumer preference.

SCOPE OF THE STUDY ___________________

As learning is a human activity and is as natural, as breathing. Despite of the fact that learning is all pervasive in our lives, psychologists do not agree on how learning takes place. How individuals learn is a matter of interest to marketers. They want to teach consumers in their roles as consumers. They want consumers to learn about their products, product attributes, potential consumers benefit, how to use, maintain or even dispose of the product and new ways of behaving that will satisfy not only the consumer’s needs, but the marketer’s objectives.

The scope of my study restricts itself to the analysis of consumer preferences and consumption of Cadbury and Nestle Chocolates. There are many other brands of chocolates available but my study is limited to two major players of chocolates leaving behind the others. The scope of my study is also restricts itself to North Goa region only.

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`

OBJECTIVES OF THE STUDY ______________

` OBJECTIVES OF THE STUDY ______________ This project is based on the comparative study consumer Preference

This project is based on the comparative study consumer Preference towards Nestle and Cadbury chocolates.

Objectives of the study are:

With respect to the chocolate selected and rated as no 1

To study sweetness affecting the purchasing decision of customers.

To study the packaging of chocolates affecting the purchasing decision of chocolate buyers.

Brand of chocolates affecting the purchase decision of chocolate buyer.

LIMITATIONS OF THE STUDY _____________

` OBJECTIVES OF THE STUDY ______________ This project is based on the comparative study consumer Preference

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In attempt to make this project authentic and reliable, every possible aspect of the topic is kept in mind. Nevertheless, despite of fact constraints were at play during the Formulation of this project. The main limitations are as follows:

Due to limitation of time only few people would be selected for the study. So the sample of consumers would not enough to generalize the findings of the study.

RESEARCH METHODOLOGY ______________

In attempt to make this project authentic and reliable, every possible aspect of the topic is

This chapter describes the methodology of the study. This project is based on information collected from primary sources as well as secondary sources. After the detailed study, an attempt would be made to present comprehensive analysis of consumption of Cadbury and nestle chocolates consumed by the people. The data would be used to cover various aspects like consumption, consumer’s preference and customer’s satisfaction regarding Cadbury and Nestle chocolates. In collecting requisite data and information regarding the topic selected, I would go to the residents of Mapusa city and also some retailers to collect the data.

Survey design:

A related sample of population was selected on the basis of the overall population

of North Goa and questionnaires were made.

Sample Size and Design:

A sample of 100 people was taken on the basis of the formula calculation. The

actual consumers would be contacted on the basis of random sampling. The target people will be anyone who eats Cadbury or nestle chocolate only.

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Sampling Frame:

All the customers who buy Cadbury chocolates and Nestle chocolates.

Research Instrument:

This work is carried out through questionnaires. The questions included are

multiple choice questions.

Data Collection:

The data, which is collected for the purpose of study, is divided into 2 bases:

Primary Source:

The primary data comprises information survey of “Comparative study of consumer behavior towards Nestle and Cadbury chocolates”. The data would be collected directly from respondent with the help of questionnaires.

Secondary Source:

The secondary data would be collected from internet, References from Library.

Data Analysis:

The data is analyzed on the basis of suitable tables by using mathematical techniques. The technique that I will use is bar technique for comparing the different chocolates under each brand i.e. Cadbury and nestle. And secondly hypothesis testing would is also used together with Chi Square test.

Hypothesis –

  • 1. For sweetness of chocolates - H

o

: p 1 ≠ p 2

H 1 : p 1 = p 2 Where p 1 = proportion of people preferring Cadbury chocolates due to sweetness.

P 2 = proportion of people preferring Nestle chocolates due to sweetness.

  • 2. For packaging of chocolates – H

o

: p 3 ≠ p 4

H 1 : p 3 = p 4

Where p 3 = proportion of people preferring Cadbury chocolates due to packaging.

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P 4 = proportion of people preferring Nestle chocolates due to packaging.

3.

For Brand – H

: p 5 ≠ p 6

o

H 1 : p 5 = p 6

Where p 5 = proportion of people preferring Cadbury chocolates due to the Brand. P 4 = proportion of people preferring Nestle chocolates due to the Brand.

Attributes

Cadbury

Nestle

Sweetness

p1

p2

price

p3

p4

Packaging

p5

p6

Analysis

The responses obtained were analyzed regarding how many customers prefer Cadbury and how many prefer Nestle.

Table No - 1

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Number Of Respondents Preference for chocolates.

 

Chocolate Brand

Number of Respondent

Percentage

   

Cadbury

  • 56 56%

     

Nestle

  • 44 44%

     
         

From the above table no 1, and above graph we can observe that 56% of respondents prefer Cadbury chocolates and 44% of respondents prefer Nestle chocolate’s.

18

ANALYSIS FOR CADBURY ONLY- In the next finding the 3 attribute in the study that is
ANALYSIS FOR CADBURY ONLY-
In the next finding the 3 attribute in the study that is Sweetness (taste), brand and
packaging are analyzed to find out which is the most dominant attribute with
respect to Cadbury chocolates.
Ta
bl
Fi
nd e
Ra
Br
Pa
in 2
No nk
10
an
14
ck
10
g -
No of in
20
×5
22
×5
d
ag
×5
19
th
Fo
of
No 1’ g’
=5
×4
17
=7
×4
=5
×4
in
e r
of s 2’ s
No
=8 0
×3
=8 0
3=
=7 0
3= g
14
do
Ca
of s 3’
No
=5 0
2=
2=
24
8
24
×2
6
TO
mi
db
of s 4’
12
1=
19
1
20
1=
16
=2
18
1=
ur
na
TA s 5’
3
6
4
2
3
8
5
nt y
L s
at
tr
ib
ut
e
by
ra
nk
From table 2 we can see that Brand is the most dominant attribute for Cadbury
(202) followed by Sweetness (196) and finally Packaging (183).
in
g
th
em
(1
hi
gh
The calculation is done by adding the rankings of the attributes, for example in
the above table the total number of 1’s received for Sweetness is 10 and these 10
responses are multiplied with 5 because it is the most preferred. Similarly for
sweetness the total number of 5’s received is 3 and it being the lowest value it is
multiplied by 1 since it’s the least preferred by those respondents.
es
t
an
d
5
lo
we
st
19
)

1)

The respondents were further divided into Sweetness preferring and non-sweetness preferring depending on whether they considered sweetness as a attribute in their purchase of Cadbury chocolate. Here we find whether Sweetness has any

Calculations with regard to Sweetness

 

ƒ o

 

ƒ e

 

ƒ o –ƒ e

o –ƒ e ) 2

o –ƒ e ) 2 / ƒ e

 

10

 

8.46

 

1.54

2.37

 

0.280

5

 

DAIRY-

5-STAR

0.97

PERK

4.03

TEMPTATION/

16.2

 

FRUIT

TOTAL

16.70

 

4

 

MILK

3.84

 

0.16

CLEBRATON

0.025

 

AND

0.00651

 

3

   

3.07

 

-0.07

 

0.049

 

NUT

0.0159

 
                     

SWEETNESS

8

10

 

8.46

5

4

-0.46

3

0.211

8

 

0.0249

30

1

   

2.53

 

-1.53

 

2.34

   

0.924

 

NO FOR

3

1

 

1.84

3

1

1.16

1

1.345

3

 

0.730

9

 

SWEETNESS

1

   

1.15

 

-0.15

 

1.1225

   

0.976

 

TOTAL

1

11

 

0.92

8

5

0.08

4

0.0064

11

 

0.006956

39

 

3

   

2.53

 

0.47

 

0.220

   

0.0869

 
         
 

Note: χ 2 = 19.7511 , for υ=4; Significant at 0.05 level

 

TOTAL

 

19.7511

 

association with the purchase of Cadbury chocolate. We test the relationship using chi-square method.

TABLE 3 Sweetness of Cadbury Chocolate’s

TABLE 4
TABLE 4

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9.488(tabulated value) χ 2 = 19.751 REGION ACCEPTED
9.488(tabulated value)
χ 2 = 19.751
REGION
ACCEPTED

Fig no 1

From the above tables we see that the calculated chi-square value is 19.751 and the table value is found to be 9.488 for 0.05 degree of freedom. If we compare it with figure1 we can observe that the calculated and the table value f does not all fall in the accepted region that is the un-shaded region, we can conclude that the null hypothesis is rejected and alternate is accepted.

Hence there is association between sweetness and Cadbury chocolate purchase. That is respondents purchase Cadbury chocolate due to sweetness. Where ƒ o is observed frequency and ƒ e expected frequency.

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2)The next is to find whether Brand of Cadbury has any association while chocolate purchase. We test the association with chi-square method.

TABLE 5 Brand of Cadbury Chocolate’s –

 

DAIRY-

5-

PERK

TEMPTATION/CLEBRATON

FRUIT

TOTAL

MILK

STAR

AND

NUT

BRAND

  • 6 9

 

7

6

8

36

NON

  • 4 2

 

0

1

5

12

BRANDED

TOTAL

10

11

7

7

13

48

Note: χ 2 = 6.725 , for υ=4; Significant at 0.05 level

 

TABLE 6 -

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Calculations with regard to Brand

 

ƒ o

ƒ e

ƒ o –ƒ e

o –ƒ e ) 2

o –ƒ e ) 2 / ƒ e

6

7.5

-1.5

2.25

0.3

9

8.25

0.75

 
  • 0.562 0.068

7

5.25

1.75

  • 3.062 0.583

 

6

5.25

0.75

 
  • 0.562 0.107

8

9.75

-1.75

  • 3.062 0.314

 

4

2.5

1.5

2.25

0.9

2

2.75

-0.75

0.56

0.204

0

1.75

-1.75

3.06

1.75

1

3.25

-2.25

5.06

1.557

5

3.35

1.75

3.06

0.942

 

TOTAL

6-725

FIGURE 2 9.488 (tabulated value) Accepted Region χ 2 = 6.725
FIGURE 2
9.488 (tabulated value)
Accepted Region
χ 2 = 6.725

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From the above tables we see that the calculated chi-square value is 6.725 and the table value is found to be 9.488 for 0.05 degree of freedom. If we compare it with figure2 we can observe that the calculated and the table value fall’s in the accepted region that is the un-shaded region, we can conclude that the null hypothesis is accepted and alternate is rejected.

Hence there is association between brand and Cadbury chocolate purchase. That is respondents purchase Cadbury chocolate due to its brand. Where ƒ o is observed frequency and ƒ e expected frequency.

3) The next is to find whether Packaging of Cadbury has any association while chocolate purchase. We test the association with chi-square method.

TABLE 7 Packaging of Cadbury Chocolate’s –

24

 

DAIRY-

5-

PERK

TEMPTATION/CLEBRATON

FRUIT

TOTAL

MILK

STAR

AND

NUT

ATTRACTED

8

6

  • 1 2

 

10

27

TO

PACKAGING

NOT

1

4

  • 6 3

 

5

19

ATTRACTED

TO

PACKAGING

TOTAL

9

10

  • 7 5

 

15

46

Note: χ 2 = 10.186 , for υ=4; Significant at 0.05 level

 

TABLE 8 -

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Calculations with regard to Packaging -

 

ƒ o

ƒ e

ƒ o –ƒ e

o –ƒ e ) 2

o –ƒ e ) 2 / ƒ e

8

5.28

2.72

7.39

1.40

6

5.86

0.14

0.0196

0.00334

1

4.108

-3.108

9.659

2.351

2

2.93

-0.93

0.864

0.295

10

8.80

1.2

1.44

0.163

1

3.71

-2.71

7.34

1.97

4

4.13

-0.13

0.0169

0.004092

6

2.89

3.11

9.67

3.346

3

2.06

0.937

0.877

0.426

5

6.19

-1.19

1.416

0.228

 

TOTAL

10.186

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FIGURE 3 9.488 (tabulated value) Rejected region Accepted Region χ 2 = 10.186
FIGURE 3
9.488 (tabulated value)
Rejected region
Accepted Region
χ 2 = 10.186

From the above tables we see that the calculated chi-square value is 10.186 and the table value is found to be 9.488 for 0.05 degree of freedom. If we compare it with figure3 we can observe that the calculated and the table value does not fall in the accepted region that is the un-shaded region, we can conclude that the null hypothesis is rejected and alternate is accepted.

Hence there is no association between packaging and Cadbury chocolate purchase. That is respondents do not purchase Cadbury chocolate due to its packaging. Where ƒ o is observed frequency and ƒ e expected frequency.

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ANALYSIS FOR NESTLE ONLY-

In the next finding the 3 attribute in the study that is Sweetness (taste), brand and packaging are analyzed to find out which is the most dominant attribute with respect to Nestle chocolates.

From table 9 we can see that Sweetness is the most dominant attribute for Nestle (156) followed by Packaging (148) and finally Brand (144).

The calculation is done by adding the rankings of the attributes, for example in the above table the total number of 1’s received for Sweetness is 8 and these 8 responses are multiplied with 5 because it is the most preferred. Similarly for sweetness the total number of 5’s received is 3 and it being the lowest value it is multiplied by 1 since it’s the least preferred by those respondents.

 

Table 9

- For Nestle

Finding the dominant attribute by ranking them (1 highest and

 

5 –lowest)

 

Ranking’s

Sweetness

Brand

Packaging

No of 1’s

8×5 =40

7×5=35

9×5=45

No of 2’s

19×4=76

12×4=48

16×4=64

No of 3’s

9×3=27

16×3=48

6×3=18

No of 4’s

5×2=10

6×2=12

8×2=16

No of 5’s

3×1=3

3×1=3

5×1=5

TOTAL

156

144

148

1)

The respondents were further divided into Sweetness preferring and non-sweetness preferring depending on whether they considered sweetness as a attribute in their purchase of Nestle chocolate. Here we find whether Sweetness has any association with the purchase of Nestle chocolate. We test the relationship using chi-square method.

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Calculations with regard to Sweetness

 

ƒ o

 

NESTLE

BAR-ONE

ƒ e

 

MUNCH

–ƒ e

ƒ

o

 

MILKY -BAR

o –ƒ )

KIT-KAT

2

e

o

–ƒ ) / ƒ e

TOTAL

2

e

 

4

 

-CLASSIC

6.17

 

-2.17

 

4.708

   

0.763

 

8

   

7.71

 

0.29

 

0.084

   

0.010

 
                       

SWEETNESS

7

   
  • 4 7

6.17

8

 

0.828

7

0.686

1

 

0.111

27

7

   

5.4

 

1.6

 

2.56

   

0.474

 

NO FOR

1

   
  • 4 -0.54

1.54

2

 

1

0

0.291

1

 

0.189

8

 

SWEETNESS

4

   

1.82

 

2.18

 

4.75

   

2.611

 

TOTAL

2

   
  • 8 -0.28

2.28

10

 

8

7

0.0784

2

 

0.034

35

 

1

   

1.82

 

-0.82

 

0.672

   

0.30

 
         

Note: χ 2 = 6.824

0

1.6

, for υ=4; Significant at 0.05 level

-1.6

2.56

 

1.6

 
           

1

 

0.45

 

0.55

0.302

 

0.672

     

TOTAL

χ 2 = 6.824

 

TABLE 10- Sweetness of Nestle Chocolate’s

TABLE 11 9.488(tabulated value) χ 2 = 6.824 REGION ACCEPTED
TABLE 11
9.488(tabulated value)
χ 2 = 6.824
REGION
ACCEPTED

Fig no 4

From the above tables we see that the calculated chi-square value is 6.824 and the

table value is found to be 9.488 for 0.05 degree of freedom. If we compare it with

figure4 we can observe that the calculated and the table value fall’s in the

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accepted region that is the un-shaded region, we can conclude that the null

hypothesis is accepted and alternate is rejected.

Hence there is association between sweetness and Nestle chocolate purchase. That

is respondents purchase Nestle chocolate due to sweetness.

Where ƒ o is observed frequency and ƒ e expected frequency.

2) The next is to find whether Brand of Nestle has any association while chocolate

purchase. We test the association with chi-square method.

TABLE 12

Brand of Nestle Chocolate’s –

 

NESTLE

BAR-ONE

MUNCH

MILKY -BAR

KIT-KAT

TOTAL

-CLASSIC

BRAND

 
  • 4 7

8

 

7

1

27

NO FOR

 
  • 4 1

2

 

0

1

8

BRAND

TOTAL

 
  • 8 8

10

 

7

2

35

Note: χ 2 = 6.808 , for υ=4; Significant at 0.05 level

 

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Calculations with regard to Brand

 

ƒ o

ƒ e

ƒ o –ƒ e

o –ƒ e ) 2

o –ƒ e ) 2 / ƒ e

4

6.171

-2.171

4.713

0.763

8

7.714

0.286

0.0817

0.0106

7

6.171

0.829

0.687

0.1113

7

5.4

1.6

2.56

0.474

1

1.54

-0.54

0.291

0.189

4

1.828

2.172

4.717

2.580

2

2.28

-0.28

0.078

0.034

1

1.828

-0.828

0.685

0.375

0

1.6

-1.6

2.56

1.6

1

0.45

0.55

0.30

0.672

 

TOTAL

χ 2 = 6.808

TABLE 13 -

31

FIGURE 5 9.488 (tabulated value) Accepted Region χ 2 = 6.808
FIGURE 5
9.488 (tabulated value)
Accepted Region
χ 2 = 6.808

From the above tables we see that the calculated chi-square value is 6.808 and the

table value is found to be 9.488 for 0.05 degree of freedom. If we compare it with

figure 5 we can observe that the calculated and the table value fall’s in the

accepted region that is the un-shaded region, we can conclude that the null

hypothesis is accepted and alternate is rejected.

Hence there is association between brand and Nestle chocolate purchase. That is

respondents purchase Nestle chocolate due to its brand.

Where ƒ o is observed frequency and ƒ e expected frequency.

32

3) The next is to find whether Packaging of Nestle has any association while

chocolate purchase. We test the association with chi-square method.

TABLE 14

Packaging of Cadbury Chocolate’s –

 

NESTLE

BAR-ONE

MUNCH

MILKY -BAR

KIT-KAT

TOTAL

-CLASSIC

PACKAGING

4

7

 
  • 3 5

6

 

25

NO FOR

4

3

 
  • 6 0

0

 

13

PACKAGING

TOTAL

8

10

 
  • 9 5

6

 

38

Note: χ 2 = 12.83 , for υ=4; Significant at 0.05 level

 

TABLE 15 –

Calculations with regard to Packaging -

 

ƒ o

ƒ e

ƒ o –ƒ e

o –ƒ e ) 2

o –ƒ e ) 2 / ƒ e

4

5.26

-1.26

1.58

0.301

7

6.57

0.43

0.184

0.0280

3

5.921

-2.921

8.53

1.441

6

3.94

2.06

4,243

1.077

5

3.28

1.72

2.958

0.901

4

2.73

1.27

1.612

0.590

3

3.42

-0.42

0.176

0.051

6

3.07

2.93

8.58

2.796

0

3.94

-3.94

15.52

3.94

0

1.710

-1.71

2.924

1.71

 

TOTAL

χ 2 = 12.83

33

FIGURE 6 9.488 (tabulated value) Rejected region Accepted Region χ 2 = 12.83
FIGURE 6
9.488 (tabulated value)
Rejected region
Accepted Region
χ 2 = 12.83

From the above tables we see that the calculated chi-square value is 12.83 and the

table value is found to be 9.488 for 0.05 degree of freedom. If we compare it with

figure 6 we can observe that the calculated and the table value does not fall in the

accepted region that is the un-shaded region, we can conclude that the null

hypothesis is rejected and alternate is accepted.

Hence there is no association between packaging and Nestle chocolate purchase.

That is respondents do not purchase Nestle chocolate due to its packaging.

Where ƒ o is observed frequency and ƒ e expected frequency.

34

DISCUSSION OF IMPLICATION _____________

Referring to Table 1 we can say that percentage of respondents preferring Cadbury

is 56% and respondents preferring Nestle is 44%.

The respondents were asked to rank the sub-chocolate’s of their preferred

Company (Cadbury or nestle) it was found out that from$ the survey that in

Cadbury brand more respondents prefer Cadbury Fruit and nut’s chocolate (17) ,

then followed by 5-star (12) , Dairy-milk (11) , Perk (9) and lastly Temptation (7).

Whereas in Nestle the most preferred chocolate is Nestle classic and Bar-one (11)

followed by Munch (9) , Milky-bar (7) and lastly Kit-kat (6).

Using the chi-square test we tried to find if there is any association of various

attributes of the study towards purchase of chocolate, but the results showed that

none of the attributes studied had single handedly any association with purchase of

chocolates.

35

CONCLUSION ________________________

The study proposes that the attributes Sweetness, Brand and packaging had

influence in the purchase of chocolates. The study showed that with regard to

sweetness respondents preferred to nestle chocolates. Whereas with respect to

Brand and packaging respondent prefer Cadbury chocolates over Nestle

From the survey it was also found out that in Cadbury brand more respondents

prefer Cadbury Fruit and nut’s chocolate (17) and in nestle Nestle classic and Bar-

one (11) were chosen by respondents.

36

APPENDICES

PROJECT REPORT ON CONSUMER PREFERENCE TOWARDS NESTLE AND CADBURY CHOCOLATES

Q1. Do you eat chocolate? Yes

Q1. Do you eat chocolate? Yes No
Q1. Do you eat chocolate? Yes No

No

Q2. Which brand of chocolate do you prefer?

Cadbury

Nestle

Cadbury Nestle
Cadbury Nestle
 
 

Q3. If Cadbury rank the following chocolates according to your preference. (1 for Best and 5 for Last) Dairy –Milk

Q3. If Cadbury rank the following chocolates according to your preference. (1 for Best and 5

5- star

5- star

Perk

Perk

Temptation or celebration

Temptation or celebration

Fruit and nuts

Fruit and nuts

If Nestle rank the following chocolates according to your preference. (1 for Best and 5 for Last)

 

Nestle classic

Nestle classic

Bar- one

Bar- one

Munch

Munch

Milky- bar

Milky- bar

Kit- Kat

Kit- Kat

WITH RESPECT TO THE CHOCLATE RANKED 1 ANS THE FOLLOWING -

Q4. What pack do you purchase?

Small

Medium

Medium
Medium

Big/ Large

Big/ Large

Q5. How frequently do you purchase chocolates?

Daily

Monthly

Monthly Hardly
Monthly Hardly

Hardly

Weekly

Q6. Does Sweetness (taste) attract you to purchase the selected chocolate?

 

Q7.Does packaging attracts you to buy chocolate?

  • Can’t say

Strongly Agree

Q7.Does packaging attracts you to buy chocolate? Can’t say Strongly Agree Agree

Agree

  • Strongly Disagree

Disagree

Strongly Disagree Disagree
Q7.Does packaging attracts you to buy chocolate? Can’t say Strongly Agree Agree Strongly Disagree Disagree

Strongly Agree

  • Can’t say

Can’t say Agree

Agree

Disagree

Disagree
Strongly Agree Can’t say Agree Disagree Strongly Disagree

Strongly Disagree

Strongly Agree Can’t say Agree Disagree Strongly Disagree

Q8. Does you purchase of chocolate depend on brand?

 

Strongly Agree

  • Can’t say

Can’t say Agree

Agree

  • Disagree

Strongly Agree Can’t say Agree Disagree Strongly Disagree

Strongly Disagree

Strongly Agree Can’t say Agree Disagree Strongly Disagree

Q9. Do you think the pricing done for the chocolate you buy is value for money?

Yes

APPENDICES PROJECT REPORT ON CONSUMER PREFERENCE TOWARDS NESTLE AND CADBURY CHOCOLATES Q1. Do you eat chocolate?

PERSONEL DETAILS –

No

  • Can’t say

APPENDICES PROJECT REPORT ON CONSUMER PREFERENCE TOWARDS NESTLE AND CADBURY CHOCOLATES Q1. Do you eat chocolate?

37

Name - __________________________________ City - _____________

  • 10-20

Age Group – 0-10

 
  • 30 and above

20-30

Gender – Male

Gender – Male

Female

Gender – Male Female
Name - __________________________________ City - _____________ 10-20 Age Group – 0-10 30 and above 20-30 Genderhttp://www.scribd.com/document_downloads/14817717? extension=doc&secret_password=&step_intrested=true 8. I:\nestle\Cadbury's, Nestle lose market share to imported chocolates - Business News - News - MSN India - News.htm 9. I:\nestle\Chocolate industry feel the pinch of fierce competition.htm 10. www.cadbury.com www.nestle.com 38 " id="pdf-obj-37-29" src="pdf-obj-37-29.jpg">

References _________________________

Literature –

  • 1. C. Anandan, To study the influence of packaging affecting brand selection in toothpaste industry, Brand management, vole-Ι No 3 page 45-57.

  • 2. Protik Basu, Research on consumer decision analysis for Purchase of fruit Drinks,http://www.scribd.com/document_downloads/13103855? extension=pdf&skic.

  • 3. Searching for buy button in the consumer’s brains, Advertising Express, vol-4, page 14.

  • 4. Consumer satisfaction, Marketing Mastermind vol 4, page 13.

  • 5. Retailing in India, Marketing mastermind vol 5, page 59.

  • 6. Buying Behavior, Marketing mastermind vol 4, page 21

  • 8. I:\nestle\Cadbury's, Nestle lose market share to imported chocolates - Business News - News - MSN India - News.htm

  • 9. I:\nestle\Chocolate industry feel the pinch of fierce competition.htm

38