ACKNOWLEDGEMENT

The successful completion of any work would

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

1
 PREFACE

The Cadburys, Indias number one chocolate, is able

to share their market insights based upon unparallel
breath of chocolate experience.
The merger in 1969 with Schweppes and the
subsequent development of the business have led
to Cadbury Schweppes taking the lead in both, the
confectionery and soft drink market and becoming a
major force in the international market. Cadbury
Schweppes today manufactures product in 60 countries
and trades in staggering 120.
This project is a sincere effort to study the buying
behavior of consumers when they buy chocolates. A
descriptive research procedure had been applied to come
to the conclusions of the project.
A detailed questionnaire had been prepared and the
responses of the samples had been collected for the
analysis. The project later ended with the analysis of the
responses keeping the limitations under consideration.

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

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

3
 CONTENTS
1. INTRODUCTION TO THE STUDY
05-17

Introduction of Cadbury
05-06
History and development of Cadbury
07-10
Introduction of Nestle
11-16
Objective of study
16
Hypothesis
17
2. PRODUCT PROFILE
18-27

Cadbury product
19
Market segmentation
21
3. RESEARCH METHODLOGY
28-30
4. DATA ANALYSIES AND INTERPRETION
31-43
5. CONCLUSION AND LIMITATIONS
44-45

4
APPENDIX
46-51
QUESTIONNAIRE
BIBLOGRAPHY

INTRODUCTION

5
 INTRODUCTION

The Cadburys Inc has taken the opportunity to offer us a

broader view of chocolate category. The Cadburys, Indias no.1
6
Chocolate, is able to share their market insights based upon
unparalleled breath of chocolate experience.
Cadbury has grown from strength to strength with new
technologies being introduced to make the Cadbury confectionary
business, one of the most efficient in the world. The merger in
1969 with Schweppes and the subsequent development of the
business have led to Cadbury Schweppes taking the lead in both,
the confectionary and soft drink market and becoming a major
force in the international market. Cadbury Schweppes today
manufactures product in 60 countries and trades in staggering
120. The Cadbury story is a fascinating story of a family business
that grew in one of the biggest, most loved chocolate brand in
the world.
This project is a sincere effort to study the buying
behavior of consumers when they buy chocolates. A descriptive
research procedure had been applied to come to the conclusions
of the project.
A detailed questionnaire had been prepared and the
responses of the samples had been collected for the analysis. The
project later concluded with analysis of the responses keeping the
limitations under consideration.

The legend called Cadbury

7
1824 A business was opened in 1824 by a young Quaker,
John Cadbury, in Bull street Birmingham which was to be the
foundation of Cadbury Limited, now one of the worlds
largest producer of chocolate.

1831 By this year the business had changed from a grocery

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

1861 John Cadbury resigned his business and handed over to

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

1866 Saw a turning point for the company with the

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

1879 Business prospered from this time and Cadbury

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

1899 In this year the business private limited company

Cadbury Brothers Limited. Progress since the start of the century
through the inter war years onwards has been rapid. Chocolate

8
has moved being a luxury item to well within the financial reach
of everyone.

1905 Cadbury has many famous brands with one of major

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

9
 Cadburys Dairy Milk Story
Chocolate has been enjoyed by successive generation
since the manufacturing process was developed in the Victorian
Times. Good chocolatiers is an art form depending on recipe
traditions, which have grown over the years. Chocolatiers have
use their skills to make balanced recipe in which all the
ingredients combine to produced chocolate with all the
characteristics that enable full delicious taste to be enjoyed by
the consumers.
By todays standards the first chocolate for eating would have
been considered quite unpalatable. It was the introduction of
the Van Houten cocoa press from Holland that was the major
breakthrough in the chocolate production as it provided extra
cocoa butter needed to make a smooth glossy chocolate.

Cadburys Milk Tray 1915

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

10
By the end mid thirties the Cadburys Milk Tray assortment
outsold all its competitions and today it is still one of the most
popular boxes of chocolates in this country.

The secret of Cadburys

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

11
 NESTLE INDIA
THE NESTLE India stock has been bubbling with activity in
an otherwise listless equity market.
Till date, the stock has surged 77 per cent from its low of Rs 304
in May 2000 and now commands a valuation 39 times the
expected earnings for 2000. This is steep by FMCG standards.
The recent surge in the stock is partly driven by the
announcement by the parent, Nestle SA, that it would use the
creeping acquisition route to mop up another five per cent in
Nestle India through open-market purchases. But improving the
stock's valuation can also be traced to good financial performance
in a market starved of healthy earnings numbers.

On a comeback trail
The resumption of its coffee exports to Russia and a favorable
input price environment pepped up Nestle India's net profit
growth to 28 per cent in the first nine months of 2000. Sales
growth in this period was 10.4 per cent, with domestic sales rising
9.8 per cent and export sales 13.8 percent. In reality, the growth
in sustainable net profits was higher than reported as the
company took an additional one-time charge of Rs 14.70
crore in the first nine months of 2000 for provisions
against contingencies.

12
Unusually, low input prices may have contributed considerably
to margin expansion. Continuing surpluses in global production
have pushed both coffee and cocoa prices (the two key inputs for
Nestle India, apart from milk) to historic lows in 2000. While
coffee prices are hovering close to their seven-year lows,
cocoa prices recently bounced off their lowest levels in three
decades.

With global agencies forecasting high carry-in stocks for

the next season, the soft input price advantage could be with
Nestle for the time being. Does this mean Nestle India will
sustain its healthy earnings performance over the next couple
of years? This will depend on its ability to revive sales growth in
its domestic product categories.

Greener pastures at home

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

13
Nestum, Lactogen); chocolates/confectionery and malted
beverages (Milo, KitKat, Charge, Munch, Polo); and food
products (Maggi noodles, soups).

Cash cows slow down

Of these, weaning foods and milk products are the cash cows,
with dominant market shares in both businesses. But as these are
mature products, they appear likely to deliver steady, and
not scorching, growth rates. Sales growth in these businesses
was less than five per cent in 1999-2000.
In chocolates and instant coffee, the growth prospects
appear brighter, but Nestle faces intense competition from the
players with the dominant market shares. While Unilever and
Tata Coffee are significant threats in the coffee market, the
market leader Cadbury India has been a potent threat in the
chocolate confectionery market.
Nestle's Kitkat has actually ceded market share to Cadbury's Perk
in the past year. The market for specialized food products such as
soups and noodles holds healthy growth potential. But the
market is relatively small and players such as International
Bestfoods, Unilever and Dabur are vying with a host of
imported brands and regional players for a share of the pie.

Stretching existing businesses

Over the past year, Nestle has devoted considerable attention to
the expansion of its domestic businesses. It has drawn brands
such as Coffeemate coffee creamer, Frappe cold coffee and
Nescafe Gold from the Swiss parent's portfolio to expand its milk
products and beverages range. Incidentally, the inputs from
the parent do not come free. Nestle India paid its parent a
Rs 53.69-crore royalty in 1999 (net profits for the year were
Rs 98.47 crore). Royalty payments accounted for 3.5-4 per cent of
sales over the past three years.

14
Nestle has used the soft input prices to reduce prices of its coffee
and chocolate brands. Products such as KitKat and Munch in
low-unit price packs have been used to encourage trial and
bolster flagging volumes. But these moves will take time to pay
off.
However, the revival in the 2000 third quarter domestic
sales is heartening. For the quarter ended September 2000,
Nestle reported an 18 per cent growth in domestic sales (export
sales declined 8 per cent due to lower realizations). Considering
that Nestle has reduced both coffee and chocolate prices over the
past year and held other product prices, this indicates volume
growth of a higher order.
A plan to expand the network of Nescafe vending machines
and establish coffee bars to encourage out-of-home consumption
of coffee is also on the cards.

Testing the waters

Over the past year, the company has also announced forays into
three new areas -- liquid milk, bottled water and biscuits. The
foray into biscuits is through the joint venture Excelsia
Foods, so the contribution to Nestle's revenues may at
best be in the form of dividends for now.
Liquid milk and bottled water are businesses that hold
immense growth potential. Larger players can expand
through higher penetration levels and at the expense of the
unorganized segment. However, both these segments are quite
crowded with feature listed and unlisted players which have
considerable financial muscle.

15
In the liquid milk segment, Nestle will be up against the
formidable Amul, apart from a host of private dairies with
established clientele.
In the bottled water market, the market leader, Bisleri (of
Parle Products), has had to contend with competition from scores
of me-too brands, apart from Pepsi's Aquafina, Coca-Cola's
Kinley. Going forward, competition is only likely to
increase, with Britannia planning to launch more bottled
water brands from its foreign collaborator Danone's portfolio
(Evian, one of the largest bottled water brands, is already on shop
shelves).

Striving for niches

Nestle India has already launched two bottled water brands in
the domestic market -- the internationally renowned Perrier,
followed recently by its sparkling mineral water brand, San
Pellegrino (reputed to be sourced from the Swiss Alps).
However, both products are for upmarket consumers. The
premium pricing suggests that the products will remain niche
products with relatively small target markets. Pure Life, the
mass market bottled water brand to be launched shortly,
will determine the success or failure of Nestle's bottled water
foray.
Nestle India has also shied away from the mass market for liquid
milk in plastic pouches, and instead restricted itself to ultra heat
treated (UHT) milk in Tetrapacks. The product is priced at a
substantial premium to the other local brands.
Investment outlook: Nestle's new product forays are into
extremely competitive markets and investments in the new
businesses are likely to be high over the next few years.
In this respect, the advantage of soft input prices, high cash
flows available from the stable businesses (such as weaning
cereals and coffee) and the financial might of the parent,
Nestle SA, will stand Nestle India in good stead.

16
The royalty to the parent should ensure that Nestle India
continues to enjoy ungrudging access to the parent's product
portfolio. In many respects, in India Nestle is pitted against
its key adversaries worldwide -- Groupe Danone and Unilever.
In the foods business at the global level, both companies are
considerably smaller than Nestle SA.
But marketing prowess, rather than size is likely to
determine the success of Nestle India's new product forays
in the next couple of years. Since the high growth rates of this
are partly on account of the low base of last year, the growth
rates are likely to reach more moderate levels next year.
The stock continues to be a good investment option for
investors with a three-year horizon. But since the recent uptrend
is partly on account of factors unrelated to the fundamentals,
there could be some downside to the stock in the near-term.

OBJECTIVE OF THE PROJECT

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

Following are the some of the main objective of our

report:
17
 Analyze the buying behavior of consumers regarding
chocolate.
Comparative study of Cadbury chocolate in the
market with its main competitors.
To study about the customer taste and
preference in the confectionary item.
To find out the market share of the different
competitors in the
Chocolate industry.
And also to find out the satisfaction level of
customer about their product.
To find advertisement effect consumer buying
behavior.
To find which promotion scheme affect more.

This report gives the help to the marketers for analyzing

the different opportunities in the chocolate industry.

HYPOTHESIES

18
 Cadbury are more preferred brand than other
brand.

Diary milk is number 1 sub brand of Cadbury.

Price is most important factor of consumer

buying behavior.

Most of customer recalls advertisement at a

time of purchasing chocolate.

Attractive display inside store more affects at

the time of purchase a chocolate.

Most of people like HARD chocolate.

19
PRODUCT
PROFILE

Cadbury Product

20
1. Dairy Milk

2. 5 Star

3.Perk

4. Celebration

21
5. Temptation

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

22
Cadburys Market Segment
Market place for any product is comprised of many different
segments of consumers, each with different needs and
wants. Markets segmentation can be defined in a number of
ways such as:

Demographic variables (e.g. Consumers are groups,

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

23
 Take home segment this describes product that are
normally purchased in supermarkets, taken home consumed
at a later stage.

To meet the objectives of our project, we segmented

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

The Real Taste of Rejuvenation

It was the market leader, but sales inched along. It focused
firmly on its target segment, but the real buyer lay beyond. For
seven long years, Cadburys Dairy Milk chocolate suffered
stagnancy even as other consumer products boomed. Just
how did the company rejuvenate an old brand to create the
marketing megs-hit of the 199s?
It Stand First Among Second coming. And it wasnt so much a re-
launch as it was a process of rejuvenation. Over a period
of 12 months, starting February, 1994, the Rs. 314 crore
confectionery makers Cadbury embarked on the most
outrageous repositioning exercise in the recent history of
Indian marketing. For, it systematically dismantled the
franchise that the company had built over 30 years of its
flagship brand, Cadburys Dairy Milk (CDM)-Cadburys Milk
chocolate until 1986-destroying the very fundamentalof generic

24
association that had made million of Indians refer to a bar of a
chocolate as a Cadbury.
More proof of the chocolate is in the eating: two years into
process, CDMs market share at 25%, with sale rising by an
average 40% per annum.

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

25
The Tests
Despite the Need To Clear The residual memory of CDMs
former
Association, caution prevented a big break with the past,
forcing
Cadbury to experiment with a combination of continuity and
change. The process entailed understanding the foundation
of the brand, since it was these that would support the new
structure. Out went the caring - and - sharing element, but
the family context stayed.
Cadbury had two pillars, so it made sense to change one.
Chocolate should be eaten whenever you feel like. It was an
impulse item, so why shouldnt it be sold as one?. The
first of the two commercial focused on functionality, purging
the emotional element. Is the storyline, The father watches TV,
engrossed, gnawing away of CDM. The children enter, followed by
the mother-but, by that time, the father has completed the
distinctly un paternal act of devouring the entire bar. The
children are shocked, where upon the produces another bar for
them-only to eat that up too. Finally, the mother brings another
bar out of her bag. The last shot more CDM bars strew around
casually.
The second commercial conveyed the same message,
depicting four member of a family doing their own thing on
a Sunday afternoon, each casually munching away on
chocolates. The less than subtle
message: eating chocolates just an everyday affair, without
special occasion or relationship coming into play. Despite
their strategic intent, both ads failed on pre airing tests. Why
for stators, children were outraged at the idea of a parent
consuming chocolate, while adults were down right angry at
the notion of the father depriving his children of chocolate bar.
Just as important, consumer rejected the idea that chocolate-
eating could be equated with mechanical activities like combing
26
ones hair. After all, chocolates were about feelings. There had to
be magic, romance, love and emotion. These elements had
been ripped away from the advertising. It was sans
emotion.

Parent Are Different From Adults

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

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

27
The Ads Had To Be Linkable
The consumer will always tell what his current belief system is,
not what it should be Cadburys job to mould has habits and
behavior in a way that would increase consumption for product
and brand.

Impulse Drives Chocolate Sales

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

The Elixir
Having decided to barter the distinctly use selfish values of
sharing and caring for the suspiciously self-centered one of self-
expression, Cadburys people insisted that the rejuvenate
be enriched with compensation and equally enduring
positive values: universal truths, enduring human values, and
universal moment of joy. To translate the brief into the
commercial, they decide to simply portray occasion of childlike-
but not childish-behavior from adults, without explicitly
identifying adults as the target customer.
They left the connection to be made by the customer In the
process they were able to get viewer involvement and high levels
of empathy. Nowhere did they actually say, youre an adult,
you can eat it. Because nobody wants to be told. Thus it was
28
that, the montage of the child in the man-the old man kicking the
football; the pregnant woman carving a chocolate; young girl
breaking into a spirit; the young man tossing a bar of
chocolate at his sweet-heart departing in a bus-was created.
That the consumption had to be liked before it could penetrate
the cultural resistance to chocolate consumption by adults was
obvious. Taking a contrition stance, Cadbury decided to test the
commercial being devised by O&Ms creative team not for
the tire battery of likeability, comprehension, credibility and
behavior modification but only for the first two. If asked
upfront, the consumer was hardly likely to consider the
dramatically-different idea credible. Nor was there much
chance of her announcing an immediate change in
behavior. But why likeability and comprehension? Simple: the
first was meant to be the vehicle on which the daring idea-
that adults should enjoy chocolate-would ride into the
consumers psyche. In other words, the commercial was meant to
make him smile at first-and only then realize the import once of
the message, which is where the comprehension had to be tested.
What was clear in this case wasthat likeability would have to
include identification and feeling warmth.

The Real Taste of Life

Campaign
The very first ad in the campaign in 94 was block
Buster. It depicted the essence of one and a half glass of milk
pouring in to a boy Dairy Milk unique glass and half in to a chunk
icon shows the glass and a half of full cream milk flowing in to the
chunk of dairy milk conveying the deliciousness and taste
appeal of the gooey, creamy, smooth chocolate inside the
pack that children like. The mnemonic of 1 glass
reached to consumer through every magazines, poster, T.V,
newspaper.
The second ad was montage of vignettes from everyday lives of
young and old which focused on showing a series of

29
emotions. The ad created a being out the child in the man
created to bring out the child in the. The old man kicking the
football, the pregnant women craving chocolate, young girls
breaking into a spirit, the young man tossing a bar chocolate at
his sweet heart departing into a bus. The common refrain linking
them was the adult in a free child mode spottiness, impulsive
and carefree.
The ad was protested among adults trough focus groups.
The ad received an overwhelming response. It was high on
likeability, evoked a great degree of empathy and identification
consumers response were those me Feel like that..
Every feels like this..accessions. Consumers described
dairy milk as of all agesEat, when ever you feel like
ityou do not have to wait for an occasion.
Dairy Milk had successfully enabled the free child in the consumer
subsequent adverting used the same communication strategy.In
other words, the commercial was meant to make him smile at
first-and only then realize the import once of the message, which
is where the comprehension had to be tested. What was clear in
this case was that likeability would have to include
identification and feeling warmth.

The New Campaign

And finally, with the launch of the new colloquial
advertising campaign Khaannein Wallon Khaannein Ka
Bahana Chahiya featuring MTV VJ Cyrus Broacha, Cadbury
India aimed to substantially increase penetration level of the
chocolate category in the next few years.
The New campaign is worth noting as it clearly differ from the
earlier one in terms of rectifying the consumer perception about
chocolate being an up market impulse driven product. The
attempt now is to change the image, to make chocolate eating a
regular habit.The current estimated penetration level of the
chocolate category is 19% in the urban market. The

30
objective behind tne new communication on Cadbury Dairy
Milk is to make the chocolate category more socially and
culturally relevant and drive penetration in the process.
The new campaign has been launched in tandem with the old
ar@@ Winning Kuch Khass Hai campaign and the media strategy
is to let the two co exist towards a common vision providing a
Cadbury in every pocket.

RESEARCH
METHODOLOGY

31
 RESEARCH METHODOLOGY
Achieving accuracy in any research requires in depth study
regarding the subject. As the prime objective of the project
is to know buying behavior of consumers regarding Cadbury with
the existing competitors in the market and the impact on
Cadbury. The research methodology adopted is basically based on
primary data via which the most recent and accurate piece of first
hand information could be collected. Secondary data has been
used to support primary data wherever needed.
Primary data was collected using the following technique
Questionnaire Method

Procedure of research methodology

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

32
Sources of secondary data
Used to obtain information on, Cadbury and its competitor history,
current issues, policies, procedures etc, wherever required.

Internet
Magazines
Newspaper

Sampling Method
Sample size- 60
Sampling involved selecting units from a population of
interest so that by studying the sample we can fairly
generalize the results back to the population from which
they were chosen. In the present course work,
convenience sampling was used and an aggregate
sample size was 60.

Sampling procedure-
We have taken simple random sampling.

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

33
DATA ANALYSIS
AND FINDINGS

34
 DATA ANALYSIS AND
FINDINGS
Data was tabulated manually and was also analyzed manually.
Excel was used to make graphs had pie charts.

FINDINGS AND SURVEY

1. Which brand of Chocolate do you prefer?

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

35
 Prefer brand Brand preffer by different age group
cadbury nestle 20

15
cadbury
10
25% nestle
5
75%
0

2. Which sub-brand you have purchased?

Cadbury Below 16.1- Above Nestle >1 16.1- <2

16 25 25 6 25 5
Diary 9 10 8 Kit Kat 2 1 6
Milk
5 Star 1 7 3 Munch 3 0 1
Perk 4 1 2 Milky Bar 1 1 0
Celebrati 0 0 0 Bar-One 0 0 0
on
Temptati 0 o 0 Milk o 0 0
on Chocolate
Total 14 18 13 Total 6 2 7

36
 12

10

8
Below16
6
16.1-25
4 Above25

0
Diary Milk 5 Star Perk Celebration Temptation

7
6
5
4 >16
3 16.1-25
<25
2
1
0
Kit Kat Munch Milky Bar Bar-One Milk Chocolate

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

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

25 25
Diary 59 65 52 Kit Kat 26 7 33
Milk
5 Star 45 56 38 Munch 24 5 22
Perk 51 50 43 Milky 18 6 19
Bar
Celebrati 32 48 33 Bar- 14 2 14
on One

37
Temptati 18 50 28 Milk 8 6 13
on Chocola
te

70
60
50
40 >16
30 16.1-25

20 <25

10
0
Diary Milk 5 Star Perk Celebration Temptation

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

4. How much importance do you give to the following factors

when you purchase a chocolate?

(Below 16)

38
 Factors Very Importan Normal Least None
Importan t Importan
t t
Flavor/ta 13 6 1 0 0
ste
Price 5 10 5 0 0
Quality 8 9 3 0 0
Packagin 5 12 4 1 0
g
Brand 6 9 2 3 0
Quantity 2 11 6 1 0

14
12
10 Very Important
8 Important
6 Normal

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

(Between 16.1 to 25)

Factors Very Importan Normal Least None
Importan t Importan
t t
Flavor/ta 17 1 2 0 0
ste
Price 2 8 5 5 0
Quality 9 4 3 2 2
Packagin 4 7 7 2 0
g
Brand 7 12 1 0 0
Quantity 8 7 3 2 0

39
 18
16
14
Very Important
12
10 Important
8 Normal
6 Least Important
4
None
2
0
Flavor/taste Price Quality Packaging Brand

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

Very Important
10
Important
Normal
5
Least Important
None
0
Flavor/taste Price Quality Packaging Brand

40
5. At the time of purchasing chocolate, do you recall
advertisement?

YES 34
NO 26

Number of customer recall advertisement

NO; 43%
YES; 57%

More Effect Somewh Not

Factors Effect at
Effect
effect
Attractive Display inside store 7 11 2 0
Advertisement 6 10 4 0
Suggestion from friends and 5 8 7 0
relatives
Brand Ambassadors 5 6 1 8
Ingredients 4 7 8 1

41
6. Please tick the following sources of information in term of
effect, when you purchase a chocolate? (Below 16)

12
10
8
6
4
2 More Effect
0
Effect
Somewhat
Not

More Effect Somewh Not

Factors Effect at
Effect
effect
Attractive Display inside store 5 10 1 4
Advertisement 5 12 2 1
Suggestion from friends and 3 7 7 3
relatives
Brand Ambassadors 0 6 7 7
Ingredients 10 4 4 2
(Between 16.1 to 25)

42
 15
10
5 More Effect
0 Effect
Somewhat
Not

More Effect Somewh Not

Factors Effect at
Effect
effect
Attractive Display inside store 10 6 4 0
Advertisement 4 11 3 2
Suggestion from friends and 2 13 4 1
relatives
Brand Ambassadors 2 5 6 7
Ingredients 7 11 1 1
(Above 25)

43
 14
12
10
8
6
4
2
0 More Effect
Effect
Somewhat
Not

7. Which form of chocolate do you like?

Hard 15
Nutties 19
Crunchy 25
Chew 1

Forms Of Prefered Chocolate

Chew; 2%
Hard; 25%
Crunchy; 42%

Nutties; 32%

44
 Below 16 Between 16.1 to Above 25
25
Hard 7 5 3
Nutties 4 7 8
Crunchy 9 7 9
Chew 0 1 0

10

6 Below 16
4 Between 16.1 to 25
Above 25
2

0
Hard Nutties Crunchy Chew

8. What pack do you purchase?

Below 16 Between 16.1 to Above 25

25
Small 11 12 5
Big 9 8 12
Family Pack 0 0 3

15

10 Below 16
Between 16.1 to 25
5
Above 25
0
Small Big Family Pack

45
9. Which promotional offers attract most?

Below 16 Between 16.1 Above 25

to 25
Free gifts 14 4 8
Price offer 6 15 12
Any other 0 1 0

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

11. Where do you purchase chocolates from?

Option 1 Option 2 Option 3 Option 4

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

14
12
10 Option 1
8
Option 2
6
Option 3
4
2 Option 4
0
Below 16 16 to 25 Above 25

46
12. How frequently do you purchase chocolates?

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

14
12
10
8 Below 16
6 16 to 25
4 Above 25

2
0
Once in a fortnight Daily Weekly Monthly Quarterly

13. If your preferred brand is not available for repeat purchases

then what will you do?

Below Between 16.1 to Above 25

16 25
Postpone your 2 6 6
purchase
Switch over to other 9 6 11
brand
Go to the other shop 9 8 3
to search for your
preferred brand

47
 CONCLUSION

Cadbury is the most preferred brand than other brands in

India and Dairy Milk is the most preferred product from Cadbury.

Flavor and packaging are most important factors that affect

the buying behavior of customer. 57% of customer recalls
advertisement before buying the product. So by our research it is
concluded that advertisement affects the buying behavior.

48
 41% people like crunchy and 32% people like nutties
chocolate. And most of the people like small packs. Free gift are
more attracting for children and price offer schemes attracts
middle group more.

Limitation
1. Segmentation was based on age group only.

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

whole cant be appropriately judge.

3. The research was restricted to a small geographical

area.

49
4. Minimum age among respondent was 5 year and
maximum 35 years.

5. The study dont consider occasion of buying chocolate.

50
 APPENDIX

QUESTIONNAIRE

NAME-

GENDER- MALE FEMALE

AGE- Below 16 16.1 - 25

Above 25

Que1. Do you eat chocolate?

Yes No

51
Que2. Which brand of chocolate do you prefer?

Cadbury Nestle

Que3. Which sub-brand you have purchased?

Cadbury Nestle

Dairy Milk Kit Kat

5Star Munch

Perk Milky Bar

Celebrations Bar-One

Temptation Milk Chocolate

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

(5 for most and 1 for least preferred).

Cadbury Nestle

Dairy Milk Kit Kat

5Star Munch

52
 Perk Milky Bar

Celebrations Bar-One

Temptation Milk Chocolate

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

(Tick in the desired column)

Factors Very Important Normal Least None

Important Important

Flavor/tast
e

Price

Quality

Packaging

Brand

Quantity

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

Yes NO

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

53
 Factors More Effect Somewhat Not
Effect
effect Effect

Attractive Display inside store

Advertisement

Suggestion from friends and

relatives

Brand Ambassadors

Ingredients

Que8. Which form of a chocolate do you like?

Hard Nutties Crunchy Chew

Que9. What pack do you purchase?

Small Big Family Pack

Que10. Which promotional offers attract you most?

Free gifts Price Offer Any other (specify)

___________________

Que11. Where do you purchase chocolates from?

Neighborhood shop where chocolates are kept in bottles

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

Que12. How frequently do you purchase chocolates?

Once in a fortnight Daily

Weekly Monthly

54
 Quarterly

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

Postpone your purchase

Switch over to other brand

Go to the other shop to search for your preferred brand

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

No, not at all I may consider

No, I shall not Cant say

Thank You

BIBLOGRAPHY
1. www.cadburyindia.com
2. www.nestle.in
3. Marketing Management - Philip kotler

55