A

PROJECT REPORT
O
“Buying Behavior of consumers of agen

group 18-25 for milk chocolate bars

with special reference to:-

“
(A study in
Nanded)

Submitted In partial fulfillment of the requirement

for the award of degree of

Master of Business
Administration
Session 2005-2007

Supervisor: Scholar:
Mr. Girish Taneja Surya. P. Chauhan
Lecturer Deptt. Of Management Studies MBA- IV Semester
TIT&S, Nanded

Department of Management
Studies
The Technological Institute of Textiles & Sciences
Nanded
 DECLARATIO
N

I SURYA PRAKASH Roll No.33 of class MBA IV sem of THE

CHAUHAN
TECHNOLOGICAL INSTITUTE OF TEXTILE & SCIENCES, NANDED here by
declare the project entitled
“BUYING BEHAVIOR OF CONSUMER OF
AGE
GROUP 18-25 FOR MILK CHOCOLATE BARS” is an original work and same
has not been submitted to any other institution for awards of any other degree
partially or wholly.

(Signature of Candidate )
 CERTIFICAT
E

It is certified that the project entitled “ BUYING BEHAVIOR OF CONSUMERS OF

AGE GROUP 18-25 FOR MILK CHOCOLATE ” submitted to T.I.T&S
BARS
(M.D.U), Nanded in partial fulfillment of the requirement for M.B.A (IV Semester)
course has been carried out under my supervision.
It is further certified that is a record of bonafide & original work done by
for the award of the said degree.

Mr.Girish Taneja
Lecturer
Department Of Management Studies
TIT&S, Nanded

Forwarded By:

Director of Institute
 ACKNOWLEDGEMEN
T
Preservation, inspiration and motivation have always played a key role in the
success of any venture. In the present world of cut throat competition project is
likely a bridge between theoretical and practical working, willingly I have
prepared this particular project.

First of all I would like to thank the supreme power, the almighty God who
is obviously the one who has always directed m e to work on the right path of my
life. With his grace this project could become a reality.

I feel highly delighted with the way

my dissertation report on topic
“ Buying Behavior of consumers of age
group 18-25 for milk chocolate bars
with special reference to:-

“
(A case study of
Nanded)
Any accomplishment requires the effort of many people and this work is not
different. Firstly, I would like to extend my sincere thanks to Mrs.M.S.DESHPANDE
(Lecturer, MBA, SCMS) for his able guidance, regular counseling, keen interest
and constant encouragement, without this the project would not have a
successful end. I am highly thankful to him for his helpful attitude, regular
coaching and inspiration.

I sincerely thank to all the faculty members and the staff associated for
their support given to me time to time. Also, I would like to thank to all my friends
and fam ily members for their support given to me time to time. I don’t have words
to express my thanks, but still my heart is full of gratitude for the favors received
by me from the every person.

(ANAND M. BAIS)
 PREFAC
E
The customer is king. Finally ten years after the liberalization of India’s econom y
began. The market place has, suddenly become tightening competitive. Not only
have new players stormed into the country, there are more brands available then
ever before in every segment of every market. The customer today buys only
that which meets his/her every desire. This demands more intimate
understanding of the customer by the “Smart Companies” the study has been
divided into six parts.
First part contains briefly the CHOCOLATES, history of chocolates, along with
the development of passion for chocolates.
Second part presents an overview of evolution of chocolates, chocolate industry-
growth and competition in various categories. Major players in this industry.
Third and Forth part includes a brief profile about the consumer behavior &
Research Methodology for the study. This part describes the term consumer
behavior and its importance.
Part five deals with the Analysis & Discussion. Important findings have been
discussed at last for better understanding.
Lastly, Part six namely “Findings & Recommendation” highlights the major
findings during the course of the study. Accordingly, recommendations have
been made.

SURYA PRAKAS H CHAUHAN

 CONTENT
S

Introduction to the study

Objectives of the study

Research Methodology

A. Problem Statement

B. Research Design
• Area of Study
• Objective of the Study
C. Data Collection
• Data Collection Methods
• Data Collection Techniques
D. Sampling Design
• Sampling Unit
• Sample Size
• Sampling Techniques
• Lim itations of the study

Analysis & Interpretation

Findings

Conclusions

Suggestions

Annexure

• Questionnaire
• Bibliography
INTRODUCTION
TO THE STUDY
 INTRODUCTIO
N

This project is about preference of the consumers towards FMCG products i.e.
chocolates in domestic m arket (in special context of nestle, Cadbury & Amul
chocolates)
The story of chocolate began in the new world with the Mayans, and also the
word chocolate com es from the Mayan word xocoatl, and the word cocoa from
the azlec cacahuati, who drank a dark brew called cacahuaquchtl. Later, the
Aztec consumed chacahoua and used the cocoa bean for currency. In 1523, they
offered cocoa beans to Cortez, who introduced chocolate to the world, where it
swiftly became a favorite food among the rich and noble of Europe.

From the beginning, turning raw, bitter cocoa beans into what one 17 th century
writer called “the only true food of the gods” has been a fine art, a delicate
mixture of alchem y and science. Centuries ago it was discovered that fermenting
and roasting the beans could create an almost otherworldly flavor. In 1875, after
years of trying, a 31-year- old candy maker in vevey named Daniel peter figured
out how to combine m ilk and cocoa power.
The ancient Aztecs believed chocolate
To be the “ FOOD OF THE
GOD”
Firstly, there is a need to know about the chocolate…that what is chocolate. Why
chocolate is the most popular dessert flavoring around.

MEANING OF CHOCOLATE:-
1. A preparation of the seed of cocoa, roasted, husked, and ground (without
removing any of the fat), often sweetened and flavored, as with vanilla.
2. A beverage or confection made from this.
3. Dark brown.
4. A divine substance inspiring passion in those who consume it.
 ORIGIN OF
CHOCOLATE
The word chocolate comes from the Mayan word xocoatl, and the word ‘cocoa’
from the Aztec cacahuatl. In Mexico, the beverage was called chocolath, from
lath (water) and choco. Supposedly the Spaniard found the Mexican word har to
pronounce and called it cacao. Chocolath, chocolath, chocolath. Puff puff. See? I
did it! (But let’s stick to cocoa) *LoI*
From cocoa to chocolate
Sorting, clearing, frying, crushing, grinding is the only sm all part of stages of
production cycle transforming cocoa beans in chocolate, which we eat.
Chocolate is really the unique product, tasty, highly nutritive (about 550 kkal in
100gm of a product), capable to be stored by years without change of properties.
It contains 50-55% of carbohydrates, 32-35% of fat, 5-6% of fibers. And also
tannin substances (4-5%), stimulators-the bromine and caffeine (1-1.5%),
microelem ents Na, K, Mg, P, Fe and vitam ins B1, & B2.
 HISTORY OF
CHOCOLATE
The discovery of cocoa was only a first step in the direction of chocolate. The
Mayas were the first to cultivate the cocoa bean for the fruits it yielded. They
used the beans as an ingredient in their favorite chocolate drink ‘xocotlatl’.
Legend suggests that the first beans came out of paradise and lent wisdom and
power to the person that ate them. For obvious reasons, the use of cocoa was
kept to a minimum by the emperors.
Before the Spanish explorers discovered the New World, chocolates and other
“exotic” foods were totally unknown in Europe. Columbus was the first European
to become acquainted with cocoa, but he wasn’t exactly impressed.
During one of his conquest in the New World he met the Aztecs. For many
generations, they drank an infusion of grilled seeds and spices. This mixture
tasted disgusting and it also contained cocoa beans. The Aztecs adopted the
ides of cocoa consumption from the Mayas.
However the conquistadors pizzaro and, in particular, Cortes did show interest in
the bean. Fernando Cortes reached the east coast of Mexico in 1519. as an
honored guest of Montezuma (Aztec emperor and inveterate chocolate fanatic)
he was offered xocotlatl –a small portion of aromatic chocolate drink mixed eith
vanilla, pepper and other herbs.
For the Mayas, cocoa beans were very important, not only were they a poplar
means of exchange, they also had a religious value. The Mayas sacrificed cocoa
beans at the funerals of the upper class.
 EVOLUTION OF
CHOCOLATE

(1753-1849)
1753 Swedish biologist Carolus Linnaeus revealed his feeling for
chocolate while attending to the task of classifying organisms in a
binomial system. To the chocolate
tree he gave the botanical name of theobroma cacao. Cacao refers
back to the original native language. Theobroma is a Latin term that
translates to “food of the gods”.
1765 In 1765 the Englishman James Watt invented the steam engine and in
doing so set in motion what we now refer to as the industrial
revolution. Around the same time in the colony of Massachusetts
one of the first m achine oriented chocolate manufacturing
businesses was being established. The partnership of John
Hannon, an Irishman, and Dr. Jam es Banker of the Massachusetts
colony formed the company Hannon’s Best chocolate. Through the
use of an old grist mill, cacao beans were ground into chocolate
liquor, pressed into cakes of paste for eventual use as a chocolate
beverage. During a routine trading mission to the West Indies,
Hannon was presumed dead when his ship failed to returned. The
nam e of the company subsequently changed to the Baker
Com pany. It was not until 1927 that the Baker family sold their
business to General Foods.
1774 The mysterious rumors that surrounded the death of pope clement
XIV, give credence to the notion that chocolate had become a
favorable way of distinguish poison. The pope died after consuming
a chocolate beverage, which also killed the unwritten confectioner
who shared in the consumption. Through there is no proof, the
Jesuits are suspected to have arranged his demise. The pope had
been in opposition to the Jesuits, and they were known chocolate
drinkers. So the conclusion, while not provable, is not unfounded.
1819 Francois Louis Cailler opened a chocolate factory on lake Geneva
near Vevey. He used machiner y he had developed him self, making
him a pioneer in the evolution of Swiss chocolate.
1828 Chocolate maker and chemist Coenraad Van Houten developed
the process now known as “Dutching.” His patented invention
involved the removal of close to half of the cocoa butter from
chocolate liquor through the use of hydraulic pressure. The removal
of the cocoa butter resulted in a commensurate decrease in fat
content. Instead of fifty percent, the hard cake that was let from this
process had a fat content of only Twenty-Five percent. The cake
could then be crushed into a powder. The use of alkaline salt
allowed for easier mixing with warm water. It also made the color
darker and had the pleasing affect of a less bitter taste. This
invention would be the key in the development of chocolate as a
confection.
1847 Joseph Fry was a Quaker who began manufacturing chocolate
under the name of Joseph Fry & Sons. While the original Joseph
Fr y left the company to become a type founder, his sons continued
the business. One of his sons, another Joseph Fry, purchased a
Watts steam engine in 1789 to more efficiently grind cacao. A
great-grandson of the original Joseph Fry led the business toward
the development of edible chocolate. Hoe found that by remixing
some of the cocoa butter back into the processed “Dutched” cocoa
powder and adding sugar, a paste was formed that could be
pressed into molds. The effect of this was a chocolate bar that
gathered as much attention as chocolate beverages had.
1849 Ghirardelli, an Italian native, planned early on having a chocolate
business. However, he traveled first to Uruguay and then to Peru
before setting in California in 1849. Though he had been attracted
by the Gold Rush, he soon learned that there was more reliable
profit to be had selling tents to other gold miners than in actual
 mining. He used the money he saved and started the Ghirardelli
chocolate factory, which is still located in San Francisco.

(1850-1986)
1850’s Prime Minister William Gladstone, in an effort to boost the
economy, lowered the taxes on cacao beans, allowing British
manufacturers to expand their market.
1860 British FDA is founded. A British journal called the Lancet
discovered that many chocolate manufacturers were employing
various methods of “Cutting” chocolate with something less
expensive. One report revealed that cocoa powder was being
thinned with brick powder. Stirred to respond, the British
government passed its first food and drug act in 1860.
1868 John Cadbury was another Qyaker who became interested in
chocolate production. In 1824 he had opened a Grocery store in
Birmingham, England. Cadbury featured cacao beans that he
would roast and grind himself. In time he realized the interest and
profitability in changing his focus to manufacturing of chocolate.
Cadbury became so renowned that he received a Royal Warrant in
1854 to be the single cocoa and chocolate provider for Queen
Victoria. Richard and George Cadbury took over their father’s
business and in 1866 purchase a Van Houton machine. They
began to market Cadbury cocoa powder. By 1868, the Cadbury
Com pany produced the first box of chocolate candies. Their
business continues to flourish, and in 1879 they took over the
Birmingham suburb of Bourneville. The factory they built there
supported a town, providing both worker housing and recreational
facilities.
1879 During the same period that Cadbury was developing into a
formidable chocolate force, a Swiss chocolate manufacturer was
struggling to find a way to combine chocolate with milk. Daniel
Peter could not produce something with a smooth consistency
 because the milk could be made m ore shelf-stable for use a baby
formula. The product of Nestle’s experimentation was a sweetened
condensed milk. The new milk, which had lesser water, was
mixable with chocolate and made a product that would not spoil
easily. Henri Nestle and Daniel Peter form ed a company in 1879.
Today, the largest food company in the world is Nestle.
1879 A conching machine was created in 1879 that allowed for the
smoothest chocolate yet. Rudolf Lindt used a concave granite bed
where chocolate liquor, sugar, and milk if desired, would be ground
back and forth by heavy rollers. Lindt named his chocolate
Fondants because their texture was as sm ooth as the popular
cream y candies. The process of conching soon became a part of
common chocolate manufacturing. In addition, the friction of the
rollers produced a heat that made roasting an unnecessary steps.
Today, the rollers in conching machines are kept at a controlled
temperature for an even higher quality.
1893 Milton Suavely Hershey was a Mennonite from Pennsylvania who
owned a caramel manufacturing plant. When he visited the world
Colombian Exposition in Chicago his interest was initially to
purchase and use machines to make chocolate covered candies.
His interest changed course after visiting Europe and researching
the many chocolate manufacturers there. Hershey then decided to
focus his business on chocolate production and in 1900 he
introduced to the world the milk chocolate Hershey bar. It was
followed five years later by the Hershey kiss. With business
expanding beyond expectation, Milton Hershey took over the town
of Derry Church, Pennsylvania and renamed it Hershey. Thought
he also developed a Hershey, Cuba around a sugar mill he owned,
Milton Hershey was focused out of Cuba in1959 when Castro
gained control. Today Hershey, Pennsylvania is an impressive
tourist attraction.
1908 The triangular Toblerone chocolate bar was created and launched
into market by Swiss chocolate maker Jean Tobler.
1913 Swiss chocolate maker Jules Sechaud invented the chocolate filled
bonbon.

1929 At the end of the twentieth century Cella’s Confections, on West

Broadway and canal, was a part of many factories that made up
New York City’s confectionary district. In 1929 their candy factory
began manufacturing chocolate-covered cherries. Today, while the
other confectioneries have disappeared, Cella’s remains.
1936 Philip Silverstein owned a candy company on Delancey Street in
New York City. In 1936 he created a thick, nut and raisin filled
chocolate bar, known as the Chunky Bar.
1940’s As the United States geared up for a war in Europe, Militon
Hershey suggested an addition be made to the standard soldier’s
“D-Ration.” The American military began to include three 4 ounce,
600 calorie chocolate
bars in each “D-Ration.” While from today’s perspective this m ay seem
odd, the Aztecs had used chocolate for the edification of their own
warriors. In addition to lifting the energy and spirits of the troops
during World War II, the chocolate bars became associated with
peace, as m alnourished holocaust survivors were rescued by
American troops offering chocolate.
1986 When Jim Walsh left his life as an adventures executive in Chicago,
he decided to move to Hawaii to start a chocolate business. He
purchased plantations on Kea’au and Kona, and decided to use the
fine criollo cacao beans for his foundation. The beans he harvested
are sent to California, after they have been fermented and dried,
and are processed into high quality chocolate. Only available
through mail order, the chocolate is used primarily by pastr y chefs.
 MAJOR PLAYER IN THE
MARKET

CADBURY (INDIA)

Trading at rs.850, the Cadbury (India) stock presents a good long-term

investm ent option.
After hitting a high of Rs. 981 in March 2000, the stock retraced to its present
level. The current price discounts the latest EPS 49 times. With good growth
protects ahead and a strong financial background, the stock may hold good
potential for steady returns over the long term.

Cadbury (India), subsidiary of Cadbury Schweppes Overseas, is one of the

leading players in the chocolate and sugar confectionary segment. The parent
has a 51 percent stake in the company. For the year-ended December 1999,
close to 76 percent of the sales turnover was derived from chocolate followed by
malted foods (22 percent).

Cadbury (India) has for long been the leading player in the chocolate industry. It
is virtually a household name with leading brands such as Five Star and Dairy
Milk. Of late, the company has been flooding the market with new launches.
Among the successes of recent years are Perk and Picnic.

In the malted food segmented, Bournvita is one among the popular brands.
However, the health- drink segment has failed to lead support to the company’s
bottom-line in the recent past. Volumes in Bournvita have been deciding for
some time. However, this is not likely to be a drag on the profitability.

Cadbury (India) has levered on its marketing strengths and product range.
Com petition m ay stem from players such as nestle in the near term. Apart from
this, other new players such as Mars and Hershey’s may have an impact on the
level of competition. However, the reduction in the excise duty on malted drinks
and chocolates and the lower import duties on cocoa is likely to have a positive
impact on the cost-structure of the firm.
The earnings performance of 2000 first quarter was impressive. Sales revenue
rose 20 per cent to Rs. 139.34 crores compared to the corresponding previous
period. Operating margins declined marginally from 16.4 per cent to 15.7 per
cent. Post-tax earnings rose an 11.5 per cent to Rs. 10.34 crores. If the top line
growth is sustained at this level, it could provide a boost and growth over the long
term. Shareholders can stay invested.
 NESTLE

The story of chocolate began in the new World with the Mayans, who drank a
dark brew called cacahuaquchtl. Later, the Aztecs consumed chacahoua and
used the cocoa bean for currency. In 1523, they offered cocoa beans to Cortez,
who introduced chocolate to the world, where it swiftly became a favorite food
among the rich and noble of Europe.

From the beginning, tuning raw, bitter cocoa beans into what one 17 th century
writer called “the only true food of the gods” has been a fine art, a delicate
mixture of alchem y and science. Centuries ago it was discovered that by
fermenting and roasting the beans, an almost otherworldly flavor could be
created. In 1875, after tears of trying, a 31-year-old candy maker in Vevey
named Daniel Peter figured out how to combine milk and cocoa powder. The
result-milk chocolate. Peter, a friend and neighbor of Henri Nestle, started a
company that would quickly become the world’s leading maker of chocolate. For
three decades the company called Peter, Cailler, Kohler relied on Nestle for milk
and marketing expertise. In 1929, the almost inevitable merge took place as
Nestle acquired Peter, Cailler, and Kohler.
 AMU
L
AMUL CHOCOLATE is made from Sugar, Cocoa Butter, Milk Solids, Chocolate
mass Composition Milk Fat 2% Sugar 55% Total fat 32.33% (Milk fat + Cocoa
Fat) Cocoa Solids 7.5% Milk Solids 20% Product Specifications: Meets all
requirements under the PFA for boiled sugar confectionary. “A gift foe someone
you love”. Amul Chocolate has chosen the phrase “A gift of someone for love” to
market their chocolate products.

Today, GCMMF’s Amul brand of milk products receives business queries from
dozens of countries, ranging fron the U.S. and the Netherlands to Singapore and
New Zealand-thanks to an innovative marketing campaign on the World Wide
Web.

The round-eyed, Chubby-Cheeked Amul Moppet has been a wildly popular

advertising fixture, with its punchy one-liners amusing Indian viewers from bus
stands, lam p kisos and billboards for over thirty years. The ultimate compliment
to the butter came when a British company recently launched a butter and called
it Utterlt Butterly, a fitting recognition of the “Thorough bred, utterly Butterly
Delicious Amul.” Every week, Amul’s topical ads for its butter products are posted
on its Web site, along with recipes fore Indian dishes featuring Amul products.
Archives of hundreds of topicals dating back to 1979 are available on the site.
The topicals have also been carried every day on the Indian World home page.
Consumer
Behavior
 INTRODUCTIO
N
The term consumer behavior refers to the behavior that consumers
display in searching for, purchasing, using, evaluating and disposing of products
and services that they expect will satisfy their needs. The study of consumer
behavior is the study of how individuals make decisions to spend their available
re- source (time, money, effort) on consumption related items. It includes the
study of what they buy, why they buy it, when they buy it, where they buy it, how
often they buy it and how often they use it.

Information about the pattern of consumption in various segments of

society and dynamics of consum er behavior are central to the understanding for
developing new concepts in m arketing. The essence of modern marketing
concept is that all elements of business should be geared towards identifying and
satisfying the needs of the consumers.

Decision Making Process

The consumer’s decision to purchase or reject a product is a moments of
final truth for marketer. It signifies whether the marketing strategy has been wise,
insightful, and effective, or whether it was poorly planned and missed the mark.
Thus, marketers are particularly interested in consumer’s decision-making
process. We would be discussing a simple model of consumer decision making
that emotional consumer. The modal, has three major components:
1) Inputs
2) Process
3) Output
 CONSUMER DECISION MAKING
External
PROCESS influences

Firm’s Marketing Efforts Socio culture Environment

• Family
• Product
• Reference Group
• Price
Input • Other non-commercial
• Place
influence
• Promotion
• Social class
• Culture and sub-
culture influences

Consumer Decision Making

• Need recognition Psychological Factors

• Information search
• Valuation • Perception
alternatives • Motivation
• Attitude
Process
• Learning
• Personality

Experience

Post Purchase Behavior

Purchase
• Trial
Output
• Repurchase

Post purchase evaluation

INPUTS
The input component draws on external influences that serve as sources
of information about a particular product and influence a consumer’s product-
related values and behavior. Chief among these input factors are the marketing –
mix activities of organizations that attempt to communicate the benefits of their
products and services to their potential customer, and the no marketing socio-
cultural influences, which, when internalized, affects the consumer’s purchase
decision.

PROCESS
The process component of the modal is concerned with how consumers
make decisions. The psychological field represents. The internal influences
(motivation, perception, learning, personality, and attitudes) that effect the
consumer’s decision making processes.
Prepurchase Activity : After the problem is identified, the buyer indulges in
prepurchase activity. It is under stood that need is a father of a deed.
There generally remains a time lag when a person thinks to buy and the
actual incidence of buying. During this time, the person is energized and is likely
to be influenced by various factors. Need arousal drives the consumer to collect
information about the required product. He first indulges in internal search, scans
his psychological field so as to recollect of retrieve any information or past
experience related to particular need. His psychological field comprises of his
past learning. Perception, personality and past experience. If he is not satisfied
he then goes in for external search and looks for various sources of information.
The degree of perceived risk can also influence this stage of the decision
process. In high – risk situation they are likely to engage in complex information
search and evaluation tactics.
Of key interest to marketer are the various sources of information that the
consumer will return to and the relative influence that they will have on his buying
behavior.
Evaluation of Alternatives : when evaluating potential alternatives consumers
tend to use two types of inform ation:
1. A “list” of brands from which they plan to make their selection (the evoked
set), and
2. The criteria they will use to evaluate each brand.
The criteria consumers use to evaluate the brands that constitute their
evoked sets usually are expressed in terms of important product
attributes. Consumers use certain procedures or rules to facilitate a choice
among multi – attribute objects. Consumers’ decision rules have been
broadly classified into two major categories compensatory and non
compensator y decision rules.
An understanding of which decision rules consumer apply in
selecting a particular service or product is useful to marketers concerned
with formulating a promotional programme.

Output
The output portion of consumer decision – marking model concerns two
closely associated kinds of post decision activity. Purchase behavior and post
purchase evaluation. The objective of both activities is to increase the
consumer’s satisfaction with his/her purchase.
Purchase Behavior : Consumer make two types of purchase and repeat
purchase. If a consumer purchase a product (or brand) for the first time, and
buys a smaller quantity than usual, this purchase would be considered a trail.
Thus, a trail is the explorator y phase of purchase behavior in which consumers
attempt to evaluate a product through direct use.
If the new brand is established product category (cola, chewing gum ,
candies) is found by trail to be more satisfactory or better than other brands,
consumers are likely to repeat the purchase, Repeat purchase behavior is
closely related to the concept of brand loyalty, which firms try to encourage
because it contributes to greater stability in the marketplace.
 OBJECTIVE OF THE
STUDY
1. To study the brand preferences of consumers from the three brands of
chocolates i.e. Amul, Cadbury, Nestle available in the market.

2. To find the extent of brand loyalty of consumers that exists among

different chocolate brands.
3. To study the influence of various aspects on buying behavior.
4. To study the usage & brand awareness of chocolates product in among
the residents of Nanded.
5. To checkout the satisfaction level of the consumers for chocolate bars
they are using.
 Research
Methodology

RESEARCH
METHODOLOGY
Research methodology in a way is a written game plan for conducting research.
Research methodology has many dimensions. It includes not only the research
methods but also considers the logic behind the methods used in the context of
the study and complains why only a particular method of technique has been
used. It also helps to understand the assumption underlying various techniques
and the criteria by which they can decide that certain technique will be applicable
to certain problems and other will not. Therefore in order to solve a research
problem, it is necessar y to design a research methodology for the problem as the
some may differ from problem to problem.
This chapter focuses on the various techniques, methods and
assumptions used in this study. It sheds light on the research problem, objectives
of the study, and also its limitations. The later part of the chapter explains the
manner, in which the data is collected, classified, tabulated, analyzed and
interrupted so as to each to conclusive results.

The study is of diagnostic nature and thus the overall research design is
going to be rigid. The design should provide enough provision for protection
against bias-ness and must maximize reliability.

A)PROBLEM STATEMENT:-
Research work is management parlance is extremely important for a given
close view of the relatives of the real life business issues. For any management
student who is striving to perform outstandingly. It is of paramount importance
that apart from theoretical knowledge he must also gain some practical
knowledge. Survey report deals specially with providing an opportunity to
management students to have some exposure in real business world. My study
topic deals with Consumer Behavior and different factors that influence consumer
to purchase a particular brand of chocolates.
As chocolate is regarded as one of the biggest Fast Moving Consumer
Good (FMCG), there are many factors in m ind of consumer which induce them to
purchase a particular brand of chocolate. Some of these factors are Price, Taste,
Packaging, Brand name. Ever changing behavior of consumer, dominance of
different brands in the market compelled me to undertake a research work in this
segment. The prime objective of my study is to analyze the effect of various
factors on buying behavior of consumers .

B) RESEARCH DESIGN:-

To analysis the buying behaviors of the residents of Nanded Sample Survey

Methods has been employed through other m ethods are also important. This
method is given prime significance in modern research because of its extensive
use to study the relationship of different factors, attitudes and practices of society
and to explore the problems that cannot be treated by experimental methods.

To collect data, a number of techniques are employed under the sample

survey method i.e. questionnaire. The increasing use of questionnaire is probably
due to increased emphasis by social scientists on quantitative measurement to
uniformly accumulated data.

a) Area of study

The area of the study is different Markets of Nanded in order to collect the
Primary data from the respondents.

b) Study area
Study area is Nanded.

c) Target Segment

Consumers of Milk chocolates bars of age group 18-25

C) SELECTION OF SAMPLE :-
It becom es im possible to contact each and every individual of the population due
to limitations of essential resources like time and money. Therefore, the study is
preferably allowed down to a representation sample to make the study more
manageable.
Keeping in the view the objectives and resource limitation of the study,
100 respondents were considered.
Respondents - 100(Youths of age group 18-25)
The selected sample is representative of the population and is accurate
and practicable.

D) SAMPLING PLAN :-
The following factors will be taken into consideration within the scope of sampling
plan:

I Sampling Unit :It defines the target population that will be sampled i.e.
it answers who is to be surveyed. In this study, the sampling unit is youth with in
the age group of 18-25 years.

II Sampling Size: - It indicates the numbers of people to be surveyed.

Though large samples give more reliable results than small samples but due to
constraints of time and money, the sample size was restricted to 100
respondents.

Probability sampling can be of following types:

• Simple random sampling
• Stratified random sampling
• Cluster (area) sample
In this case, stratified random sampling was done since the respondents will
classified into well defined classes or strata that were distinct from each other.

E) COLLECTION OF DATA :
After the research problem has been defined and the research design has
been chalked out, the task of data collection begins. The data can be collected
mainly through primary sources, but it was supplement with secondary data.
I Primary data collection:
Primary data is the data which is collected through observation or direct
communication with the respondent in one form or another. These are several
methods for prim ary data collection like Observation Method, Interview Method,
through schedules, through questionnaires and so on.
II Secondary data collection methods:
Secondar y data is collected through
• Magazines
• Journals
• Portals

Formation of Questionnaire
Quite often the questionnaire is considered as the heart of a survey
operation. Hence it should be carefully constructed. It is an investment that is
widely used to collect various types of data and consists of long lists of questions
designed to collect any information. It has personally been found that people are
more frank in giving replies to a questionnaire than to an interview schedule.
Though being less expensive, it has certain limitations like incomplete entries
and erroneous responses. But the educational qualification of the respondents is
an additional factor which renders this technique the most relied upon.
 Formation of a good questionnaire involves intensive thinking and
deliberation of the problem with predetermined objective and aims properly
placed in the questionnaires.

The questionnaire framed for the purpose of the study consists of a

lim ited number of questions placed in logical order. So, that the objective of the
question is clear to the respondents. All the questions are centered on the
problem keeping in the m ind. The questions were both open and close ended as
well as multiple choices.

Analysis of Data :
Data, after collection, has to be analyzed in accordance will the outline laid
for the time of developing the research plan. The term analysis refers to the
computation of certain measures along with searching for patterns of relationship
that exist am ong data groups. Data presented in raw state appear unrecognized
and complex. Statistical processors are used this complex data into some
significant understandable form.

LIMITATIONS OF THE
STUDY
The project was successfully completed with certain inherent lim itations. These
lim itations were:

1) The time of research was short due to which many fact has been left
untouched
2) The Area undertaken in research in Nanded only. But to do a
completer research a wide area is required, so the area is also
a
constraint of the study.
3) Sample for the study taken is of only 100 consumers. This can also act
as a constraint in the study.
4) While collecting data some of the consumers are not willing to fill the
questionnaire, so they might not fill their true behavior. This can also
be a constraint of the study.
Data Analysis
&
Interpretation
 ANALYSIS AND
INTERPRETATION
Q1. Which companies’ chocolate do you prefer to purchase?

Brand Name Percentage

Cadbury 40

Nestle 35

Amul 25

25% Cadbury
40%
Nestle
Amul
35%

As per shown in the Pie chart, the maximum m arket share is hold by Cadbury.
And least share is hold by Amul followed by Nestle. And this result is obtained
from the response of customers towards Questionnaire filled by them for the
consumption of milk chocolate bars.
Q2. What is your pattern of consumption?

Pattern of consumption Percentage of consumption

More than one per day 15

Daily one 25

3-4 chocolates per week 45

Weekly 10

Rarely 5

Percentage of consumption
More than one
per day
Daily one
10% 5% 15%
3-4 chocolates
25% per week
45% Weekely

Rarely

As shown in Pie chart, most of the consumers consume milk chocolate bars as
3-4 per week, which represent 45% of the total number of surveyed consumers.
And second most percentage of consumers consumes milk chocolate bars are of
daily one.
Q3. Do you purchase the same chocolate every time?

Answer Percentage

Yes 68

No 32

Percentage

32%

Yes
No
68%

As pie chart shows, 68% of the consumer purchase the same chocolate every
time, it means that m ostly consum ers are brand loyal.32% of consumers don’t
purchase the same chocolate every time.
Q4. If no, then while switch over to another brand of chocolate then what
factor you consider (tick any one)?

Factors Response Percentage

Price 6 18
Quality 12 38
Brand Name 3 9.5
Advt. and Ref. Group 3 9.5
Taste 8 25

Percentage
Price

Qualit
25% 18% y
Brand Name
9%
10% 38% Advt. and Ref.
Group
Taste

As shown by the pie chart, 38% of consumers consider “Quality” as most

important factor while switching over to any other brand of milk chocolate bars,
and the second m ost preferred factor is “Taste”
Q5. Which factor you consider the most while purchasing the chocolate?
Please tick any one.

Consumer's consideration Percentage

Price 16

Taste 48

Brand 18

Packaging 9

Availability 9

Percentage

Price

16% Taste
9% 9%

Brand
18%
48% Packaging

Other

48% of the consumer of milk chocolate bars said that the most considering factor
by them on the basis of which they purchase a particular brand of milk chocolate
bars is Taste of that milk chocolate bars. And the least interested factor is
Packaging and Availability.
Q6. Which mode of advertisement influence you most to buy a particular
Chocolate? Please tick any one.

Media Percentage

Newspaper 22

Magazine 14

Radio 4

Television 54

Others(hoardings,banner,pamplets etc) 6

Percentage

Newspape
r
6% Magazine
22%

Radio
14%
54% Televisio
4%
n
Others(hoardings,
b
anner,pamplets
etc)

The buying behavior of consum ers is also affected by the different type of
advertisements. As shown in the pie chart, the most influencing media is
electronic media i.e. TV, and the second most influencing factor is newspaper.
Q7. Which reference group influence you most to buy a particular
chocolate? Please tick any one.

Reference Groups Percentage

Friends 55
Family 3
Retailers 1
Celebrity 39
Others 2

Percentage

2 Friends

39 Family
Retailers
55
Celebrity
13 Others

As shown in the pie chart, from reference group friends are the most influencing
factor which influence consumer to purchase a particular brand of milk chocolate.
And this statement is supported by 55% of consumers of milk chocolate bars.
And the second most influencing factor which influence customer to purchase a
particular brand of milk chocolate bar are celebrities , and this statement is
supported by 39% of consum ers.
Q8. Whether you check or consider manufacturing and expiry date while
buying any chocolate?

ANSWER Percentage

YES 55

NO 45

Percentage

45% Yes
55% No

Pie chart says that 55% of the consumer check or consider manufacturing and
expiring date while buying any chocolate. 45% of consumers don’t go for that.
This should be a m atter of concern
Q9. How much you are satisfied with the present brand of chocolate which
you often purchase?

Satisfaction Level Percentage

Highly satisfied
27
Satisfied
32
Undecided
21
Dissatisfied
12
Highly dissatisfied
8

Percentage

High ly
s atis fie d
Satisfied
12% 8% 27%

Undec ide d
21%
32%
D iss atisfie d

High ly
dissa tis fied

About 27%of consumers are highly satisfied with the present brands of Milk
chocolate bars in Nanded and 32% are satisfied. if we consider brand wise then
milk chocolate bar of Cadbury is the most preferred brand in Nanded which
holds 40% of the market share and after that Nestle has second position
with a holding of 35% of the market share and the least preferred brand from
the take brand to m ake report is Amul with a holding of 25% of market share
 Findings
&
Conclusion
 FINDINGS &
CONCLUSION
The findings of the study of consumer buying behavior in chocolates states
among all the three to brands i.e. Cadbury, Nestle and Amul. The brand at first
place is Cadbury , the Nestle (2 nd ) and last is Amul . Among all these three
Cadbury is having the largest market share i.e. 40 %, Nestle 35 %and Amul 25 %.
Among all these Brands Cadbury is the only company offering largest num ber of
brands in chocolates i.e. 6 (only for milk chocolate bars). As compared to
Cadbury Nestle Company is having 2 brands and Amul is with 4 brands of
chocolates.

For 48% of the consumers the most important factor which is considered
while purchasing any milk chocolate bars is Taste of that chocolate. They
give preference to other factors also, but most important thing is taste.
The buying behavior of consum ers is also affected by the different type of
advertisements. And the most influencing media is electronic media i.e. TV ,
and from reference group friends are at most influencing position.
Quality is the most important factor which consumers consider while
switching over to any other brand of milk chocolate bars.
Consumers of Nanded are more attracted towards the foreign brands like
Cadbury and Nestle and demand that more number of foreign milk
chocolate bars should be available in the market, like some milk chocolate
bars brands of Swiss and French chocolates. As this thing shows that
consumer of Nanded are more satisfied with the foreign brands and hence
dem and more of it. But brands like Amul are not able to get proper place in
the market in spite that good advertisem ent is being done by Amul also.
68% of the consumers are brand loyal.
The buying behavior of consumer for different brands of milk chocolate bars
is affected by various factors like price, taste, packaging, brand etc.
55% of the consum er check or consider manufacturing and expiring date
while buying any chocolate. 45% of consumers don’t go for that. This should
be a matter of concern

SUGGESTIONS
 SUGGESTION
S
A detail study of the “ Consumer’s Buying Behavior of Age Group 18-25
For Milk Chocolates Bars ” was done. Some important suggestions are as
follows:
1. The Indian company AMUL has to review its process so as to gain brand
loyalty of the consumers.

2. The chocolates whose expiry dates goes off should be replaced at once
and fresh stock should be offered.
3. The chocolate companies should think on the matter that why the
consumers switch over to the other brands.
4. The chocolate companies should put more & more emphasis on the taste
and quality of the chocolate so as to gain brand loyalty.
5. As factors other than TV and Newspaper are considered less so
companies should use the print and electronic media for advertisement in
large extent.
Annexure

Questionnaire
On
 “Buying behavior of consumer for
Milk chocolate bar of age group
18-25

Name of the consumer ____________________________________

Age ____________________________________

Sex ____________________________________

Income ________________________________

Q1. Which companies’ chocolate do you prefer to purchase?

Cadbury
Amul
Nestle

Q2. What is your pattern of consumption?

More than one per day Daily

One
3-4 Chocolate per week
weekly
Rarely

Q3. Do you purchase same chocolate every time?

Yes
No

Q4. If no, then while switch over to another brand of chocolate then what factor
you consider? Please tick any one.

Price Quality Brand

Name

Advertisement and Reference group Taste

Q5. Which factor you consider the most while purchasing the chocolate (tick any
one)?
Price Taste

Brand Packaging

Availability

Q6. Which mode of advertisement influence you most to buy a particular

Chocolate? Please tick any one.

Magazine
Newspaper

Radio Television

Other

Q7.Which reference group influence you most to buy a particular chocolate?

Please tick any one.

Friends Family
Retailer
Celebrity
Other

Q8. Whether you check or consider manufacturing and expiry date while buying
any chocolate?

Yes No

Q9. How much you are satisfied with the present brand of chocolate which you
often purchase?

Highly Satisfied Satisfy

Undecided
Dissatisfied
Highly Dissatisfied

Q10. What is your suggestion for the improvement of your preferred chocolate
Brand?
_______________________________________________________________

BIBLOGRAPH
Y
BOOKS

• Marketing Management, Kotler Philip

• Marketing Research, Donald T.S
• Research Methodology, C.R kothari
• Consumer Behaviour, Della A.J
• Consumer Behaviour, Schiffman & Kanauk

MAGAZINES & JOUNALS

• Advertising Express, September 2006,Traditional Mass Media, By

K.Suresh
• Indian Journal of Marketing, March 2006, Article By Dr.Banusmathy
• Business World, November 2006
• Business India, Advertising
• Business Today, Trends

WEBSITES
www.amul.com
www.nestle.com
www.cadburyindia.com
www.consumerpsychology.com
www.altavist.com