Chocolate Industry

29
CHOCOLATE INDUSTRY Management Research Project-1 Submitted In the partial fulfilment of the Degree of Master of Business Administration Semester-1 By Name: Mauli Y. Parekh Roll No.25 Name: Vandana Bhagchandani Roll No.2 Under the Guidance of: Prof. Rachita Jayswal Submitted To: A.M.P.I.C.S Institute of Management. Ganpat University, Kherva. 1

Transcript of Chocolate Industry

Page 1: Chocolate Industry

CHOCOLATE INDUSTRY

Management Research Project-1

Submitted

In the partial fulfilment of the Degree of

Master of Business Administration

Semester-1

By

Name Mauli Y Parekh Roll No25

Name Vandana Bhagchandani Roll No2

Under the Guidance of

Prof Rachita Jayswal

Submitted To

AMPICS Institute of Management

Ganpat University

Kherva

November 2010

1

Contents

SR NO

Particular

Executive SummaryObjective and ScopeObjectiveScopeResearch MethodologyIdentification of TopicResearch typeResearch DesignData collectionSample SizeSelection of BrandsResearch InstrumentsHistory of chocolate Chocolate industry- An OverviewNational brandsCadburyParleAmulNestle IndiaLocal brandsMichirsquosBaba kentLinkageSecondary objectiveMarket strategyTarget audiencePackaging amp labellingQuestionnaireAnalysisNational brands analysisLocal brands analysisOverall view Kids surveyFinding amp recommendationBibliography

PREFACE

2

As a part of MBA curriculum and in order to gain practical knowledge in fieldOf management we are required to make a report on any Business related topic

The basic objective behind this project is to gain the knowledge about the Consumer Behaviour and to interpret its various implications We have selected the topic Consumer Behaviour Regarding Chocolate Industry

The chocolate industry is an ever-growing industry and is expected to face a boom in the coming years too A large numbers of Chocolate industries have been established in Gujarat Also a majority of the Industrial Units are established at Naroda Narol and Kubernagar in Ahemdabad

The preparation of this project is mainly based on the facts and findings noted through the primary data collected by us from the visits to the companies and from various written and published documents

The objectives of the report are to understand the factors influencing the purchase decision of the brands of chocolate industry in ahemdabad and to find out the marketing strategies and problems of chocolates industry

The scope of our project is limited to the chocolates industry and is confined to the industrial units located in ahemdabad

Inspite of our best efforts there may be errors of omission and commissions in the project for which we as a group take full responsibility

3

ACKNOWLEDGEMENT

Though this acknowledement we express our sincere gratitude towards all those people who have helped us in the preparation of this project which has been learing exprience

We appreciate the co-operation extended by the marketing heads of all the companies in giving us all imformation that made it possible for us to make this project

We would like to thank the director Prof(Mrs)HDTrivedi the faculty the computer lab operator the librarian and the administative staff of BK majumdar institute of business administration-HLBBA for their support

Finally we express our sincere thanks to Prof Arun Prasad who guided us throughout the project and gave us valuable suggestions and encouragement

4

EXECUTIVE SUMMARY OFCHOCOLATE INDUSTRY

BACKGROUND

The origins of chocolate can be traced back to the ancient Maya and Aztec civilizations in Central America who first enjoyed chocolate a much-prized spicy drink made from roasted cocoa beans Chocolates bars are first manufactured at a confectionery level in the year 1765 Chocolate was first manufactured at Milan The chocolate industry has undergone a sea of changes in past years Advent of industrialization opened new avenues for chocolate industry There are many famous brands are available in chocolate industry Some imminent brands in chocolate are Nestle Cadbury Amul Gand many more The process of chocolate making is quite interesting The therapeutic uses of chocolates are established scientifically Many international brands of chocolates are available worldwide Depending upon what goes into it there are many types of chocolates available now These types of chocolate include cocoa powder dark chocolates bittersweet chocolate semi sweet chocolate sweet dark chocolate milk chocolate The chocolate industry has grown to a worldwide industry topping $50 Billion in retail sales worldwide and continues to show healthy growth Recently there has been an increasing trend towards high quality chocolates such as chocolates with high cocoa content and or chocolates flavored with natural flavors and rich spices

OBJECTIVE

The primary objective of our project is to study the factors influencing the purchase decision of rural and urban consumers consuming different types of national and local chocolates

The secondary objective of our project is to find out different types of marketing strategies used by retailers and wholesalers

5

SCOPE

The scope of our research is confined to the chocolate industry only We will be limiting our findings to only retail consumption The scope of our survey will be limiting to Ahmedabad city only For the purpose of our study we will choose four representatives of this industry viz

NATIONAL BRANDS LOCAL BRANDS

1) Cadbury 1) Kent

2) Nestle India 2) Michi

3) Amul 3) Pelican

4) Parle 4) Ayush

RESEARCH METHODOLOGY

RESEARCH TYPE

We will follow the descriptive type of research

RESEARCH DESIGN

We will adopt the survey method and observation method A survey research will help us in studying the extent to which the factors influence the purchase decisions

6

DATA SOURCES

PRIMARY SOURCES

We will collect a survey amongst consumers of different types of chocolates We will also collect information from various company offices

SECONDARY SOURCES

We will referring to various websites journals books magazines etc

RESEARCH INSTRUMENT

The research instrument will be questionnaire

CONCLUSION

From this project we will expect to find out the factors affecting the extent to which they affect the purchase decisions

7

ContentPreface 1Acknowledgement 2Executive summary 3

ParticularExecutive SummaryObjective and ScopeObjectiveScopeResearch MethodologyIdentification of TopicResearch typeResearch DesignData collectionSample SizeSelection of BrandsResearch InstrumentsHistory of chocolate Chocolate industry- An OverviewNational brandsCadburyParleAmulNestle IndiaLocal brandsMichirsquosBaba kentLinkageSecondary objectiveMarket strategyTarget audiencePackaging amp labellingQuestionnaireAnalysisNational brands analysisLocal brands analysisOverall view Kids surveyFinding amp recommendationBibliography

Bibliography

Books

8

Philip kotler and Gary Armstrong principle of marketing10th edition

News Papers

The economic times

The Hindu business line

Websites

wwwrediffcomwwwbusiness-standardcomwwwIndia-statscomwwwAgencyfaqscomwwwEquitymastercomwwwmyiriscomwwwthehindubusinesslinecom

9

Annexure 1

Types of Chocolates

Depending on what is added to (or removed from) the chocolate liquor different flavors andvarieties of chocolate are produced Each has a different chemical make-up the differences are notsolely in the taste1 Unsweetened or Baking chocolate is simply cooled hardened chocolate liquor It is usedprimarily as an ingredient in recipes or as a garnish2 Semi-sweet chocolate is also used primarily in recipes It has extra cocoa butter and sugaradded Sweet cooking chocolate is basically the same with more sugar for taste3 Milk chocolate is chocolate liquor with extra cocoa butter sugar milk and vanilla addedThis is the most popular form for chocolate It is primarily an eating chocolateCocoa is chocolate liquor with much of the cocoa butter removed creating a fine powder It canpick up moisture and odors from other products so you should keep cocoa in a cool dry placetightly covered

There are several kinds of cocoa1048707 Low-fat cocoa has the most fat removed It typically has less than ten percent cocoa butterremaining1048707 Medium-fat cocoa has anywhere from ten to twenty-two percent cocoa butter in it1048707 Drinking or Breakfast cocoa has over twenty-two percent left in it This is the cocoa used inchocolate milk powders like Nestles Quik1048707 Dutch process cocoa is cocoa which has been specially processed to neutralize the naturalacids in the chocolate It is slightly darker and has a much different taste than regular cocoaDecorators chocolate or confectioners chocolate isnt really chocolate at all but a sort of chocolateflavored candy used for things such as covering strawberries It was created to melt easily and hardenquickly but it isnt chocolate

Categories of Chocolates

Commercial Chocolates are available in the following forms1 Bars or Moulded Chocolates2 Counts3 Panned Chocolates (Gems)4 Eacuteclairs5 Assorted ChocolatesBars or moulded chocolates (like Dairy Milk Truffle Amul Milk Chocolate Nestle Premium andNestle Milky Bar) comprise the largest segment accounting for 37 of the total chocolate market involume terms Wafer chocolates such as Kit-Kat and Perk also belong to this segment Pannedchocolates accounts for 10 of the total chocolate market

10

MAJOR PLAYERS

In Ahmedabad In India1) Ravalgaon 1) Cadbury2) Palican 2) Nestle3) Rommy 3) Amul 4) Ayush 4) Parle5) Kim Kim 5) Candyman6) Micky 6) Parry

11

Annexure 2

MARKETING STRATEGY

PRODUCTS

Decision regarding appearance size shapes weight brand packing etc are taken

PRICE

Decision regarding prize policy credit policy are taken In Urja fabrics pvt ltd the price is governed by market value based price The customerrsquos queries have to be answered within 24 hours

PLACE

Decision regarding wholesale and retail merchants channels of distribution physical decision etc are taken

PROMOTION

Decision regarding advertisement personal selling publicity and sales promotion are taken

COMPETITORS

When competition is healthy it motivates and encourages the companies to bring about drastic change in its management to stand with the competition They are forced to improve the quality of goods and prove them at low rates

12

Followings are the marketing strategy adopted by different malls of Ahmedabad city

Place No of chocolates

Price Packaging Supply chain Advertisement

Big Bazzar

Cadbury Rs5 to 90

Box bottle wrapper

Head Office(Mumbai)

___

Gallops CadburyNestle

Rs 10 to 300

Wrapper BoxPaper packaging

Local suppliers ___

Amul (retail outlet)

Amul Rs 5 to 150

Box packetswrapper

Dairy TV advertisement

Reliance Fresh

Cadbury Rs 5 to 150

Box bottle wrappers

Head Office(Mumbai)

___

Place Majorcustomers

Profit Occasions Selling Units

Schemes

Big Bazzar All 7-10 Rakhi ampDiwali Single units __Gallops Collegians amp

Children20 Christmas

Diwali RakhiSingle Units __

Amul(retail outlet)

All (majority youngsters)

20 All time hit Single units __

Reliance fresh Cadbury __ Adults Single units __

Analysis

These are the information available from different malls and retail outlets of Ahmadabad From the above information we can clearly says that mostly all the malls are selling chocolates Cadbury brand only and very few are selling nestle brand All of them are chocolates between the ranges of Rs 5 to Rs 300 Mostly they are supplying chocolates from the head office of Bombay only Amul supplying chocolates from dairy The profit margin rate of all of them is between 7 to 20 All of them are selling chocolates in single unit only and none of them are providing any schemes on sale of chocolate

13

Following are the marketing strategies adopted by different types of Shops of Ahmedabad city

Place No of chocolates Price Packaging Supply ChainShrinath parlor Cadbury

NestleAmulParle

5 -5005-10Rs 5Rs 1

__Gokul DasVeer coAshok mrktngPrecise sell

Ambika Dairyfarm

CadburyNestleParle

1 to 1751 to 10050 to 5

Tin Boxes Gokul dasVeer coPrecise sell

Krishna dairy CadburyNestleParle

1-3001-10050-5

Tinboxes Gokul DasVeer coPrecise sell

RB stores CadburyNestleParle

5-302-12050-1

__Gokul DasVeer coPrecise sell

Place Major customers Profit Occasion SellingUnits

Schemes

Shrinath parlor Kids amp adults 7-8 Rakhi amp Diwali Single units __

Ambika dairy farm

Kids 5-8 All occasions Single units Discounts at festivals

Krishna dairy farm

Kids 10-25 All occasions Single units __

RB stores Kids amp Adults 7-10 Rakhi diwalibirthday

Single units __

Analysis

These are the different type of available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Cadbury nestle amul parleThey are selling chocolates between the price range of 050 paisa to Rs 300All the retailers are purchasing Cadbury chocolates from only one distributor and that is Gokul das Same as they are purchasing nestle chocolates from veer co Parle from precise sells and amul from ashok marketing Generally all the shops earning profit between 7-25 And they are selling chocolates in single units

Following are the marketing strategies of rural brands of chocolates adopted by different shops in Ahmedabad city

Place No of chocolates Price Packaging Supply Chain

14

Aashapura KentLemoMichi

Rs 25 to 2 Plastic Wrapper Kalupur

Jitubhai Kent PelicanAayushKim Kim

Rs 25 to 5 Wrapper Kalupur

Chamunda stores KentLemoMichiPelicanAayushKim KimAasha

Rs 10 to 30 Tin boxes Packets Jar

Naroda

Satyavijay KentLemoMichiPelicanAayushKim Kim

Rs 10 to 50 Tin boxes Packets Jar

Naroda

Place Major customers Profit Occasion SellingUnits

Schemes

Aashapura Kids amp adults 5-7 - Single units __

Jitubhai Kids 5-8 All occasions Single units __Chamunda stores

JashriDeepak storesSurajNaveenshah

8-11 All occasions except feb-march

Bulk __

Satyavijay Kids amp Adults 7-10 __ Bulk __

Analaysis

These are the different type of rural brand chocolates available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Kent Lemo Michi and Aayush They are selling chocolates between the price range of Rs 10 to Rs 30 All the wholesellers are purchasing Kent chocolates from only one distributor and that is Kent Food Product Naroda Same as they are purchasing

15

Michi chocolates from JRJ Products Ltd Madhupur etc and they are selling these chocolates in bulk to retailers Generally all the shops earning profit between 5-7 And they are selling chocolates in single unit between the price ranges of 25 to 2

16

Annexure 3

OVERALL REVIEW

Talking about chocolate market in a nutshell we came to know that now dayrsquos chocolates of national band are mostly popular within both local and urban people The main reason being that the availability of national brands of chocolates like Cadbury Amul Nestle and Parle are widely available even in slums Itrsquos becoming popular in both rural and urban areas

Generally observed phenomenon is that women prefer more chocolates than men do Youngster and children up to specific age are the target audience They are concentrated and their needs are taken into consideration

For urban area precisely Dairy milk 5 star eclair munch kit Kat celebrations temptations are more famous while in rural areas chocolates like kacha aam cokanaka aayush roomy pelican and roul gun are the most consumed

While we concuted a survey among the kids they preferred those chocolates with attractive wrappers They preferred those of different shapes and sizes and with those of transparent boxes

While we conducted a survey among the kids they prefered with attractive wrappers They preferred with those of different shapes and sizes and with those of transparent boxes

When we went for retail survey we went for retail survey we came to know what their selling strategies were and what were their mostly demanded chocolates We even went to Amul for survey where we identified that consumers of Amul chocolate are in plenty

When we surveyed about chocolate consumed in our college canteen all of them said that Dairymilks were in demand So from all the above information we come to know that Cadbury is most popular brand than other brands of chocolates

17

Annexure 4

FINDINGS

We have to various conclusions from this project We have found that

1 INCOME

Income as a factor affects purchase decision indirectly ie almost all brands of chocolate are at different prices Hence it might not affect consumers purchase decision then However the same brands of chocolate are priced more at Malls So consumers become more sensitive at such places

For a consumer who has an income less than Rs 10000 he will not always be able to afford 20-50 rupees for a chocolate Hence he might spend 5 rupees for a chocolate

2 BRAND PREFRENCE amp BRAND LOYALTY

A large number of consumers have a first preference of Cadbury followed by Nestle Amul and parle Yet if the preferred brand is not available then they would switch to other brands This shows that the level of brand loyalty among consumers is very low Although Cadbury is one of the most reputed brands it does not have brand loyalty

3 AVAILIBILITY

Availability is not a factor that a consumer keeps in mind while purchasing any brand of chocolate However now a days chocolates being necessity in many occasions a consumers will purchase any brand available if his preferred brand is not available This shows that availability affects a consumer to a great extent

Taste

Many consumers purchase a brand of chocolates on the basis of how the chocolate tastes consumers appeal that they find few of the chocolates bitter in taste Hence they tend to avoid purchasing those brands as far as possible Yet on the other hand there are consumers who love the bitter taste of chocolate Hence it is a matter of consumerrsquos percieverence

Size

We have seen that usually chocolates of rs 5 to rs 10 are consumed This is followed by chocolats of rs 203050 and so on However all brands are not available in all size

18

Hence consumer who want to purchase chocolates of rs 5 and 10 of a particular brand and if it is not available than they would switch to another brand in which that size is available

PricePrice is an important factor affecting the purchase decision of consumers However consumers were agreed that they are ready to buy a brand even if its price increase They were not ready to compromise their perceived quality of the brand

Packaging and Labeling

A large number of consumers said that packaging and labeling of a brand of chocolates does not affect the purchase decision While the consumer among the lower age group especially the kids gives priority to packaging and labeling Packaging can help brand volumes but cannot be the driver

Brand awareness

Consumers are well aware of the various brands in the market One of the brands that they were ever to recall the most was CADBURY While surveying we found that CADBURY today has become synonymous to chocolates

Advertisement

Advertisement plays a small role in influencing the purchase decision of consumer Advertisement has managed to make consumer aware of various brands It helps in influencing the purchase decision only when all the brands of chocolates are available Brands like CADBURY NESTLE AMUL spend lot of money on advertisement to increase their sales on the other hand local manufactures without advertisement manage to sell their products in the market

Own experienceA large no of consumers said that they would purchase a brand of chocolates based on their own experience of taste perceived quality and so on

Brand nameIt can be seen that various brand have created a brand image for themselves in the minds of consumers When all the brands are available they purchased chocolates on the basis of brand name

Word of mouthMost consumers felt that word of mouth does not affect their purchased decision

19

No brand differentiation

There is no brand differentiation in the market ie even though people ask for dairy milk they satisfied if they walk away with 5starkit-kat munch amul or any other chocolates of any brand

RECOMMENDATION

1 The national brands of chocolates should also be made easily available and consumable in rural areas too 2 The local chocolates are widely popular in specific localities They could even be supplied in a wider area3 As per public opinion the respondents even wanted to experience varities in taste in a specific brands The companies can look forward to that4 In the lower age group between 10 to 20 the teens even wanted different sizes in shapes in chocolate For eg free of our respondents even desire to have chocolats of heart shapes specially for gifting others5 No schemes are introduced in chocolates on regular basis Schemes should be their for few of the expensive brands6 For bringing inovvation chocolate should even be made of different colurs For eg chocolates of Black White Red pink blue and so on would be widely accepted by the children

20

21

Page 2: Chocolate Industry

Contents

SR NO

Particular

Executive SummaryObjective and ScopeObjectiveScopeResearch MethodologyIdentification of TopicResearch typeResearch DesignData collectionSample SizeSelection of BrandsResearch InstrumentsHistory of chocolate Chocolate industry- An OverviewNational brandsCadburyParleAmulNestle IndiaLocal brandsMichirsquosBaba kentLinkageSecondary objectiveMarket strategyTarget audiencePackaging amp labellingQuestionnaireAnalysisNational brands analysisLocal brands analysisOverall view Kids surveyFinding amp recommendationBibliography

PREFACE

2

As a part of MBA curriculum and in order to gain practical knowledge in fieldOf management we are required to make a report on any Business related topic

The basic objective behind this project is to gain the knowledge about the Consumer Behaviour and to interpret its various implications We have selected the topic Consumer Behaviour Regarding Chocolate Industry

The chocolate industry is an ever-growing industry and is expected to face a boom in the coming years too A large numbers of Chocolate industries have been established in Gujarat Also a majority of the Industrial Units are established at Naroda Narol and Kubernagar in Ahemdabad

The preparation of this project is mainly based on the facts and findings noted through the primary data collected by us from the visits to the companies and from various written and published documents

The objectives of the report are to understand the factors influencing the purchase decision of the brands of chocolate industry in ahemdabad and to find out the marketing strategies and problems of chocolates industry

The scope of our project is limited to the chocolates industry and is confined to the industrial units located in ahemdabad

Inspite of our best efforts there may be errors of omission and commissions in the project for which we as a group take full responsibility

3

ACKNOWLEDGEMENT

Though this acknowledement we express our sincere gratitude towards all those people who have helped us in the preparation of this project which has been learing exprience

We appreciate the co-operation extended by the marketing heads of all the companies in giving us all imformation that made it possible for us to make this project

We would like to thank the director Prof(Mrs)HDTrivedi the faculty the computer lab operator the librarian and the administative staff of BK majumdar institute of business administration-HLBBA for their support

Finally we express our sincere thanks to Prof Arun Prasad who guided us throughout the project and gave us valuable suggestions and encouragement

4

EXECUTIVE SUMMARY OFCHOCOLATE INDUSTRY

BACKGROUND

The origins of chocolate can be traced back to the ancient Maya and Aztec civilizations in Central America who first enjoyed chocolate a much-prized spicy drink made from roasted cocoa beans Chocolates bars are first manufactured at a confectionery level in the year 1765 Chocolate was first manufactured at Milan The chocolate industry has undergone a sea of changes in past years Advent of industrialization opened new avenues for chocolate industry There are many famous brands are available in chocolate industry Some imminent brands in chocolate are Nestle Cadbury Amul Gand many more The process of chocolate making is quite interesting The therapeutic uses of chocolates are established scientifically Many international brands of chocolates are available worldwide Depending upon what goes into it there are many types of chocolates available now These types of chocolate include cocoa powder dark chocolates bittersweet chocolate semi sweet chocolate sweet dark chocolate milk chocolate The chocolate industry has grown to a worldwide industry topping $50 Billion in retail sales worldwide and continues to show healthy growth Recently there has been an increasing trend towards high quality chocolates such as chocolates with high cocoa content and or chocolates flavored with natural flavors and rich spices

OBJECTIVE

The primary objective of our project is to study the factors influencing the purchase decision of rural and urban consumers consuming different types of national and local chocolates

The secondary objective of our project is to find out different types of marketing strategies used by retailers and wholesalers

5

SCOPE

The scope of our research is confined to the chocolate industry only We will be limiting our findings to only retail consumption The scope of our survey will be limiting to Ahmedabad city only For the purpose of our study we will choose four representatives of this industry viz

NATIONAL BRANDS LOCAL BRANDS

1) Cadbury 1) Kent

2) Nestle India 2) Michi

3) Amul 3) Pelican

4) Parle 4) Ayush

RESEARCH METHODOLOGY

RESEARCH TYPE

We will follow the descriptive type of research

RESEARCH DESIGN

We will adopt the survey method and observation method A survey research will help us in studying the extent to which the factors influence the purchase decisions

6

DATA SOURCES

PRIMARY SOURCES

We will collect a survey amongst consumers of different types of chocolates We will also collect information from various company offices

SECONDARY SOURCES

We will referring to various websites journals books magazines etc

RESEARCH INSTRUMENT

The research instrument will be questionnaire

CONCLUSION

From this project we will expect to find out the factors affecting the extent to which they affect the purchase decisions

7

ContentPreface 1Acknowledgement 2Executive summary 3

ParticularExecutive SummaryObjective and ScopeObjectiveScopeResearch MethodologyIdentification of TopicResearch typeResearch DesignData collectionSample SizeSelection of BrandsResearch InstrumentsHistory of chocolate Chocolate industry- An OverviewNational brandsCadburyParleAmulNestle IndiaLocal brandsMichirsquosBaba kentLinkageSecondary objectiveMarket strategyTarget audiencePackaging amp labellingQuestionnaireAnalysisNational brands analysisLocal brands analysisOverall view Kids surveyFinding amp recommendationBibliography

Bibliography

Books

8

Philip kotler and Gary Armstrong principle of marketing10th edition

News Papers

The economic times

The Hindu business line

Websites

wwwrediffcomwwwbusiness-standardcomwwwIndia-statscomwwwAgencyfaqscomwwwEquitymastercomwwwmyiriscomwwwthehindubusinesslinecom

9

Annexure 1

Types of Chocolates

Depending on what is added to (or removed from) the chocolate liquor different flavors andvarieties of chocolate are produced Each has a different chemical make-up the differences are notsolely in the taste1 Unsweetened or Baking chocolate is simply cooled hardened chocolate liquor It is usedprimarily as an ingredient in recipes or as a garnish2 Semi-sweet chocolate is also used primarily in recipes It has extra cocoa butter and sugaradded Sweet cooking chocolate is basically the same with more sugar for taste3 Milk chocolate is chocolate liquor with extra cocoa butter sugar milk and vanilla addedThis is the most popular form for chocolate It is primarily an eating chocolateCocoa is chocolate liquor with much of the cocoa butter removed creating a fine powder It canpick up moisture and odors from other products so you should keep cocoa in a cool dry placetightly covered

There are several kinds of cocoa1048707 Low-fat cocoa has the most fat removed It typically has less than ten percent cocoa butterremaining1048707 Medium-fat cocoa has anywhere from ten to twenty-two percent cocoa butter in it1048707 Drinking or Breakfast cocoa has over twenty-two percent left in it This is the cocoa used inchocolate milk powders like Nestles Quik1048707 Dutch process cocoa is cocoa which has been specially processed to neutralize the naturalacids in the chocolate It is slightly darker and has a much different taste than regular cocoaDecorators chocolate or confectioners chocolate isnt really chocolate at all but a sort of chocolateflavored candy used for things such as covering strawberries It was created to melt easily and hardenquickly but it isnt chocolate

Categories of Chocolates

Commercial Chocolates are available in the following forms1 Bars or Moulded Chocolates2 Counts3 Panned Chocolates (Gems)4 Eacuteclairs5 Assorted ChocolatesBars or moulded chocolates (like Dairy Milk Truffle Amul Milk Chocolate Nestle Premium andNestle Milky Bar) comprise the largest segment accounting for 37 of the total chocolate market involume terms Wafer chocolates such as Kit-Kat and Perk also belong to this segment Pannedchocolates accounts for 10 of the total chocolate market

10

MAJOR PLAYERS

In Ahmedabad In India1) Ravalgaon 1) Cadbury2) Palican 2) Nestle3) Rommy 3) Amul 4) Ayush 4) Parle5) Kim Kim 5) Candyman6) Micky 6) Parry

11

Annexure 2

MARKETING STRATEGY

PRODUCTS

Decision regarding appearance size shapes weight brand packing etc are taken

PRICE

Decision regarding prize policy credit policy are taken In Urja fabrics pvt ltd the price is governed by market value based price The customerrsquos queries have to be answered within 24 hours

PLACE

Decision regarding wholesale and retail merchants channels of distribution physical decision etc are taken

PROMOTION

Decision regarding advertisement personal selling publicity and sales promotion are taken

COMPETITORS

When competition is healthy it motivates and encourages the companies to bring about drastic change in its management to stand with the competition They are forced to improve the quality of goods and prove them at low rates

12

Followings are the marketing strategy adopted by different malls of Ahmedabad city

Place No of chocolates

Price Packaging Supply chain Advertisement

Big Bazzar

Cadbury Rs5 to 90

Box bottle wrapper

Head Office(Mumbai)

___

Gallops CadburyNestle

Rs 10 to 300

Wrapper BoxPaper packaging

Local suppliers ___

Amul (retail outlet)

Amul Rs 5 to 150

Box packetswrapper

Dairy TV advertisement

Reliance Fresh

Cadbury Rs 5 to 150

Box bottle wrappers

Head Office(Mumbai)

___

Place Majorcustomers

Profit Occasions Selling Units

Schemes

Big Bazzar All 7-10 Rakhi ampDiwali Single units __Gallops Collegians amp

Children20 Christmas

Diwali RakhiSingle Units __

Amul(retail outlet)

All (majority youngsters)

20 All time hit Single units __

Reliance fresh Cadbury __ Adults Single units __

Analysis

These are the information available from different malls and retail outlets of Ahmadabad From the above information we can clearly says that mostly all the malls are selling chocolates Cadbury brand only and very few are selling nestle brand All of them are chocolates between the ranges of Rs 5 to Rs 300 Mostly they are supplying chocolates from the head office of Bombay only Amul supplying chocolates from dairy The profit margin rate of all of them is between 7 to 20 All of them are selling chocolates in single unit only and none of them are providing any schemes on sale of chocolate

13

Following are the marketing strategies adopted by different types of Shops of Ahmedabad city

Place No of chocolates Price Packaging Supply ChainShrinath parlor Cadbury

NestleAmulParle

5 -5005-10Rs 5Rs 1

__Gokul DasVeer coAshok mrktngPrecise sell

Ambika Dairyfarm

CadburyNestleParle

1 to 1751 to 10050 to 5

Tin Boxes Gokul dasVeer coPrecise sell

Krishna dairy CadburyNestleParle

1-3001-10050-5

Tinboxes Gokul DasVeer coPrecise sell

RB stores CadburyNestleParle

5-302-12050-1

__Gokul DasVeer coPrecise sell

Place Major customers Profit Occasion SellingUnits

Schemes

Shrinath parlor Kids amp adults 7-8 Rakhi amp Diwali Single units __

Ambika dairy farm

Kids 5-8 All occasions Single units Discounts at festivals

Krishna dairy farm

Kids 10-25 All occasions Single units __

RB stores Kids amp Adults 7-10 Rakhi diwalibirthday

Single units __

Analysis

These are the different type of available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Cadbury nestle amul parleThey are selling chocolates between the price range of 050 paisa to Rs 300All the retailers are purchasing Cadbury chocolates from only one distributor and that is Gokul das Same as they are purchasing nestle chocolates from veer co Parle from precise sells and amul from ashok marketing Generally all the shops earning profit between 7-25 And they are selling chocolates in single units

Following are the marketing strategies of rural brands of chocolates adopted by different shops in Ahmedabad city

Place No of chocolates Price Packaging Supply Chain

14

Aashapura KentLemoMichi

Rs 25 to 2 Plastic Wrapper Kalupur

Jitubhai Kent PelicanAayushKim Kim

Rs 25 to 5 Wrapper Kalupur

Chamunda stores KentLemoMichiPelicanAayushKim KimAasha

Rs 10 to 30 Tin boxes Packets Jar

Naroda

Satyavijay KentLemoMichiPelicanAayushKim Kim

Rs 10 to 50 Tin boxes Packets Jar

Naroda

Place Major customers Profit Occasion SellingUnits

Schemes

Aashapura Kids amp adults 5-7 - Single units __

Jitubhai Kids 5-8 All occasions Single units __Chamunda stores

JashriDeepak storesSurajNaveenshah

8-11 All occasions except feb-march

Bulk __

Satyavijay Kids amp Adults 7-10 __ Bulk __

Analaysis

These are the different type of rural brand chocolates available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Kent Lemo Michi and Aayush They are selling chocolates between the price range of Rs 10 to Rs 30 All the wholesellers are purchasing Kent chocolates from only one distributor and that is Kent Food Product Naroda Same as they are purchasing

15

Michi chocolates from JRJ Products Ltd Madhupur etc and they are selling these chocolates in bulk to retailers Generally all the shops earning profit between 5-7 And they are selling chocolates in single unit between the price ranges of 25 to 2

16

Annexure 3

OVERALL REVIEW

Talking about chocolate market in a nutshell we came to know that now dayrsquos chocolates of national band are mostly popular within both local and urban people The main reason being that the availability of national brands of chocolates like Cadbury Amul Nestle and Parle are widely available even in slums Itrsquos becoming popular in both rural and urban areas

Generally observed phenomenon is that women prefer more chocolates than men do Youngster and children up to specific age are the target audience They are concentrated and their needs are taken into consideration

For urban area precisely Dairy milk 5 star eclair munch kit Kat celebrations temptations are more famous while in rural areas chocolates like kacha aam cokanaka aayush roomy pelican and roul gun are the most consumed

While we concuted a survey among the kids they preferred those chocolates with attractive wrappers They preferred those of different shapes and sizes and with those of transparent boxes

While we conducted a survey among the kids they prefered with attractive wrappers They preferred with those of different shapes and sizes and with those of transparent boxes

When we went for retail survey we went for retail survey we came to know what their selling strategies were and what were their mostly demanded chocolates We even went to Amul for survey where we identified that consumers of Amul chocolate are in plenty

When we surveyed about chocolate consumed in our college canteen all of them said that Dairymilks were in demand So from all the above information we come to know that Cadbury is most popular brand than other brands of chocolates

17

Annexure 4

FINDINGS

We have to various conclusions from this project We have found that

1 INCOME

Income as a factor affects purchase decision indirectly ie almost all brands of chocolate are at different prices Hence it might not affect consumers purchase decision then However the same brands of chocolate are priced more at Malls So consumers become more sensitive at such places

For a consumer who has an income less than Rs 10000 he will not always be able to afford 20-50 rupees for a chocolate Hence he might spend 5 rupees for a chocolate

2 BRAND PREFRENCE amp BRAND LOYALTY

A large number of consumers have a first preference of Cadbury followed by Nestle Amul and parle Yet if the preferred brand is not available then they would switch to other brands This shows that the level of brand loyalty among consumers is very low Although Cadbury is one of the most reputed brands it does not have brand loyalty

3 AVAILIBILITY

Availability is not a factor that a consumer keeps in mind while purchasing any brand of chocolate However now a days chocolates being necessity in many occasions a consumers will purchase any brand available if his preferred brand is not available This shows that availability affects a consumer to a great extent

Taste

Many consumers purchase a brand of chocolates on the basis of how the chocolate tastes consumers appeal that they find few of the chocolates bitter in taste Hence they tend to avoid purchasing those brands as far as possible Yet on the other hand there are consumers who love the bitter taste of chocolate Hence it is a matter of consumerrsquos percieverence

Size

We have seen that usually chocolates of rs 5 to rs 10 are consumed This is followed by chocolats of rs 203050 and so on However all brands are not available in all size

18

Hence consumer who want to purchase chocolates of rs 5 and 10 of a particular brand and if it is not available than they would switch to another brand in which that size is available

PricePrice is an important factor affecting the purchase decision of consumers However consumers were agreed that they are ready to buy a brand even if its price increase They were not ready to compromise their perceived quality of the brand

Packaging and Labeling

A large number of consumers said that packaging and labeling of a brand of chocolates does not affect the purchase decision While the consumer among the lower age group especially the kids gives priority to packaging and labeling Packaging can help brand volumes but cannot be the driver

Brand awareness

Consumers are well aware of the various brands in the market One of the brands that they were ever to recall the most was CADBURY While surveying we found that CADBURY today has become synonymous to chocolates

Advertisement

Advertisement plays a small role in influencing the purchase decision of consumer Advertisement has managed to make consumer aware of various brands It helps in influencing the purchase decision only when all the brands of chocolates are available Brands like CADBURY NESTLE AMUL spend lot of money on advertisement to increase their sales on the other hand local manufactures without advertisement manage to sell their products in the market

Own experienceA large no of consumers said that they would purchase a brand of chocolates based on their own experience of taste perceived quality and so on

Brand nameIt can be seen that various brand have created a brand image for themselves in the minds of consumers When all the brands are available they purchased chocolates on the basis of brand name

Word of mouthMost consumers felt that word of mouth does not affect their purchased decision

19

No brand differentiation

There is no brand differentiation in the market ie even though people ask for dairy milk they satisfied if they walk away with 5starkit-kat munch amul or any other chocolates of any brand

RECOMMENDATION

1 The national brands of chocolates should also be made easily available and consumable in rural areas too 2 The local chocolates are widely popular in specific localities They could even be supplied in a wider area3 As per public opinion the respondents even wanted to experience varities in taste in a specific brands The companies can look forward to that4 In the lower age group between 10 to 20 the teens even wanted different sizes in shapes in chocolate For eg free of our respondents even desire to have chocolats of heart shapes specially for gifting others5 No schemes are introduced in chocolates on regular basis Schemes should be their for few of the expensive brands6 For bringing inovvation chocolate should even be made of different colurs For eg chocolates of Black White Red pink blue and so on would be widely accepted by the children

20

21

Page 3: Chocolate Industry

As a part of MBA curriculum and in order to gain practical knowledge in fieldOf management we are required to make a report on any Business related topic

The basic objective behind this project is to gain the knowledge about the Consumer Behaviour and to interpret its various implications We have selected the topic Consumer Behaviour Regarding Chocolate Industry

The chocolate industry is an ever-growing industry and is expected to face a boom in the coming years too A large numbers of Chocolate industries have been established in Gujarat Also a majority of the Industrial Units are established at Naroda Narol and Kubernagar in Ahemdabad

The preparation of this project is mainly based on the facts and findings noted through the primary data collected by us from the visits to the companies and from various written and published documents

The objectives of the report are to understand the factors influencing the purchase decision of the brands of chocolate industry in ahemdabad and to find out the marketing strategies and problems of chocolates industry

The scope of our project is limited to the chocolates industry and is confined to the industrial units located in ahemdabad

Inspite of our best efforts there may be errors of omission and commissions in the project for which we as a group take full responsibility

3

ACKNOWLEDGEMENT

Though this acknowledement we express our sincere gratitude towards all those people who have helped us in the preparation of this project which has been learing exprience

We appreciate the co-operation extended by the marketing heads of all the companies in giving us all imformation that made it possible for us to make this project

We would like to thank the director Prof(Mrs)HDTrivedi the faculty the computer lab operator the librarian and the administative staff of BK majumdar institute of business administration-HLBBA for their support

Finally we express our sincere thanks to Prof Arun Prasad who guided us throughout the project and gave us valuable suggestions and encouragement

4

EXECUTIVE SUMMARY OFCHOCOLATE INDUSTRY

BACKGROUND

The origins of chocolate can be traced back to the ancient Maya and Aztec civilizations in Central America who first enjoyed chocolate a much-prized spicy drink made from roasted cocoa beans Chocolates bars are first manufactured at a confectionery level in the year 1765 Chocolate was first manufactured at Milan The chocolate industry has undergone a sea of changes in past years Advent of industrialization opened new avenues for chocolate industry There are many famous brands are available in chocolate industry Some imminent brands in chocolate are Nestle Cadbury Amul Gand many more The process of chocolate making is quite interesting The therapeutic uses of chocolates are established scientifically Many international brands of chocolates are available worldwide Depending upon what goes into it there are many types of chocolates available now These types of chocolate include cocoa powder dark chocolates bittersweet chocolate semi sweet chocolate sweet dark chocolate milk chocolate The chocolate industry has grown to a worldwide industry topping $50 Billion in retail sales worldwide and continues to show healthy growth Recently there has been an increasing trend towards high quality chocolates such as chocolates with high cocoa content and or chocolates flavored with natural flavors and rich spices

OBJECTIVE

The primary objective of our project is to study the factors influencing the purchase decision of rural and urban consumers consuming different types of national and local chocolates

The secondary objective of our project is to find out different types of marketing strategies used by retailers and wholesalers

5

SCOPE

The scope of our research is confined to the chocolate industry only We will be limiting our findings to only retail consumption The scope of our survey will be limiting to Ahmedabad city only For the purpose of our study we will choose four representatives of this industry viz

NATIONAL BRANDS LOCAL BRANDS

1) Cadbury 1) Kent

2) Nestle India 2) Michi

3) Amul 3) Pelican

4) Parle 4) Ayush

RESEARCH METHODOLOGY

RESEARCH TYPE

We will follow the descriptive type of research

RESEARCH DESIGN

We will adopt the survey method and observation method A survey research will help us in studying the extent to which the factors influence the purchase decisions

6

DATA SOURCES

PRIMARY SOURCES

We will collect a survey amongst consumers of different types of chocolates We will also collect information from various company offices

SECONDARY SOURCES

We will referring to various websites journals books magazines etc

RESEARCH INSTRUMENT

The research instrument will be questionnaire

CONCLUSION

From this project we will expect to find out the factors affecting the extent to which they affect the purchase decisions

7

ContentPreface 1Acknowledgement 2Executive summary 3

ParticularExecutive SummaryObjective and ScopeObjectiveScopeResearch MethodologyIdentification of TopicResearch typeResearch DesignData collectionSample SizeSelection of BrandsResearch InstrumentsHistory of chocolate Chocolate industry- An OverviewNational brandsCadburyParleAmulNestle IndiaLocal brandsMichirsquosBaba kentLinkageSecondary objectiveMarket strategyTarget audiencePackaging amp labellingQuestionnaireAnalysisNational brands analysisLocal brands analysisOverall view Kids surveyFinding amp recommendationBibliography

Bibliography

Books

8

Philip kotler and Gary Armstrong principle of marketing10th edition

News Papers

The economic times

The Hindu business line

Websites

wwwrediffcomwwwbusiness-standardcomwwwIndia-statscomwwwAgencyfaqscomwwwEquitymastercomwwwmyiriscomwwwthehindubusinesslinecom

9

Annexure 1

Types of Chocolates

Depending on what is added to (or removed from) the chocolate liquor different flavors andvarieties of chocolate are produced Each has a different chemical make-up the differences are notsolely in the taste1 Unsweetened or Baking chocolate is simply cooled hardened chocolate liquor It is usedprimarily as an ingredient in recipes or as a garnish2 Semi-sweet chocolate is also used primarily in recipes It has extra cocoa butter and sugaradded Sweet cooking chocolate is basically the same with more sugar for taste3 Milk chocolate is chocolate liquor with extra cocoa butter sugar milk and vanilla addedThis is the most popular form for chocolate It is primarily an eating chocolateCocoa is chocolate liquor with much of the cocoa butter removed creating a fine powder It canpick up moisture and odors from other products so you should keep cocoa in a cool dry placetightly covered

There are several kinds of cocoa1048707 Low-fat cocoa has the most fat removed It typically has less than ten percent cocoa butterremaining1048707 Medium-fat cocoa has anywhere from ten to twenty-two percent cocoa butter in it1048707 Drinking or Breakfast cocoa has over twenty-two percent left in it This is the cocoa used inchocolate milk powders like Nestles Quik1048707 Dutch process cocoa is cocoa which has been specially processed to neutralize the naturalacids in the chocolate It is slightly darker and has a much different taste than regular cocoaDecorators chocolate or confectioners chocolate isnt really chocolate at all but a sort of chocolateflavored candy used for things such as covering strawberries It was created to melt easily and hardenquickly but it isnt chocolate

Categories of Chocolates

Commercial Chocolates are available in the following forms1 Bars or Moulded Chocolates2 Counts3 Panned Chocolates (Gems)4 Eacuteclairs5 Assorted ChocolatesBars or moulded chocolates (like Dairy Milk Truffle Amul Milk Chocolate Nestle Premium andNestle Milky Bar) comprise the largest segment accounting for 37 of the total chocolate market involume terms Wafer chocolates such as Kit-Kat and Perk also belong to this segment Pannedchocolates accounts for 10 of the total chocolate market

10

MAJOR PLAYERS

In Ahmedabad In India1) Ravalgaon 1) Cadbury2) Palican 2) Nestle3) Rommy 3) Amul 4) Ayush 4) Parle5) Kim Kim 5) Candyman6) Micky 6) Parry

11

Annexure 2

MARKETING STRATEGY

PRODUCTS

Decision regarding appearance size shapes weight brand packing etc are taken

PRICE

Decision regarding prize policy credit policy are taken In Urja fabrics pvt ltd the price is governed by market value based price The customerrsquos queries have to be answered within 24 hours

PLACE

Decision regarding wholesale and retail merchants channels of distribution physical decision etc are taken

PROMOTION

Decision regarding advertisement personal selling publicity and sales promotion are taken

COMPETITORS

When competition is healthy it motivates and encourages the companies to bring about drastic change in its management to stand with the competition They are forced to improve the quality of goods and prove them at low rates

12

Followings are the marketing strategy adopted by different malls of Ahmedabad city

Place No of chocolates

Price Packaging Supply chain Advertisement

Big Bazzar

Cadbury Rs5 to 90

Box bottle wrapper

Head Office(Mumbai)

___

Gallops CadburyNestle

Rs 10 to 300

Wrapper BoxPaper packaging

Local suppliers ___

Amul (retail outlet)

Amul Rs 5 to 150

Box packetswrapper

Dairy TV advertisement

Reliance Fresh

Cadbury Rs 5 to 150

Box bottle wrappers

Head Office(Mumbai)

___

Place Majorcustomers

Profit Occasions Selling Units

Schemes

Big Bazzar All 7-10 Rakhi ampDiwali Single units __Gallops Collegians amp

Children20 Christmas

Diwali RakhiSingle Units __

Amul(retail outlet)

All (majority youngsters)

20 All time hit Single units __

Reliance fresh Cadbury __ Adults Single units __

Analysis

These are the information available from different malls and retail outlets of Ahmadabad From the above information we can clearly says that mostly all the malls are selling chocolates Cadbury brand only and very few are selling nestle brand All of them are chocolates between the ranges of Rs 5 to Rs 300 Mostly they are supplying chocolates from the head office of Bombay only Amul supplying chocolates from dairy The profit margin rate of all of them is between 7 to 20 All of them are selling chocolates in single unit only and none of them are providing any schemes on sale of chocolate

13

Following are the marketing strategies adopted by different types of Shops of Ahmedabad city

Place No of chocolates Price Packaging Supply ChainShrinath parlor Cadbury

NestleAmulParle

5 -5005-10Rs 5Rs 1

__Gokul DasVeer coAshok mrktngPrecise sell

Ambika Dairyfarm

CadburyNestleParle

1 to 1751 to 10050 to 5

Tin Boxes Gokul dasVeer coPrecise sell

Krishna dairy CadburyNestleParle

1-3001-10050-5

Tinboxes Gokul DasVeer coPrecise sell

RB stores CadburyNestleParle

5-302-12050-1

__Gokul DasVeer coPrecise sell

Place Major customers Profit Occasion SellingUnits

Schemes

Shrinath parlor Kids amp adults 7-8 Rakhi amp Diwali Single units __

Ambika dairy farm

Kids 5-8 All occasions Single units Discounts at festivals

Krishna dairy farm

Kids 10-25 All occasions Single units __

RB stores Kids amp Adults 7-10 Rakhi diwalibirthday

Single units __

Analysis

These are the different type of available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Cadbury nestle amul parleThey are selling chocolates between the price range of 050 paisa to Rs 300All the retailers are purchasing Cadbury chocolates from only one distributor and that is Gokul das Same as they are purchasing nestle chocolates from veer co Parle from precise sells and amul from ashok marketing Generally all the shops earning profit between 7-25 And they are selling chocolates in single units

Following are the marketing strategies of rural brands of chocolates adopted by different shops in Ahmedabad city

Place No of chocolates Price Packaging Supply Chain

14

Aashapura KentLemoMichi

Rs 25 to 2 Plastic Wrapper Kalupur

Jitubhai Kent PelicanAayushKim Kim

Rs 25 to 5 Wrapper Kalupur

Chamunda stores KentLemoMichiPelicanAayushKim KimAasha

Rs 10 to 30 Tin boxes Packets Jar

Naroda

Satyavijay KentLemoMichiPelicanAayushKim Kim

Rs 10 to 50 Tin boxes Packets Jar

Naroda

Place Major customers Profit Occasion SellingUnits

Schemes

Aashapura Kids amp adults 5-7 - Single units __

Jitubhai Kids 5-8 All occasions Single units __Chamunda stores

JashriDeepak storesSurajNaveenshah

8-11 All occasions except feb-march

Bulk __

Satyavijay Kids amp Adults 7-10 __ Bulk __

Analaysis

These are the different type of rural brand chocolates available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Kent Lemo Michi and Aayush They are selling chocolates between the price range of Rs 10 to Rs 30 All the wholesellers are purchasing Kent chocolates from only one distributor and that is Kent Food Product Naroda Same as they are purchasing

15

Michi chocolates from JRJ Products Ltd Madhupur etc and they are selling these chocolates in bulk to retailers Generally all the shops earning profit between 5-7 And they are selling chocolates in single unit between the price ranges of 25 to 2

16

Annexure 3

OVERALL REVIEW

Talking about chocolate market in a nutshell we came to know that now dayrsquos chocolates of national band are mostly popular within both local and urban people The main reason being that the availability of national brands of chocolates like Cadbury Amul Nestle and Parle are widely available even in slums Itrsquos becoming popular in both rural and urban areas

Generally observed phenomenon is that women prefer more chocolates than men do Youngster and children up to specific age are the target audience They are concentrated and their needs are taken into consideration

For urban area precisely Dairy milk 5 star eclair munch kit Kat celebrations temptations are more famous while in rural areas chocolates like kacha aam cokanaka aayush roomy pelican and roul gun are the most consumed

While we concuted a survey among the kids they preferred those chocolates with attractive wrappers They preferred those of different shapes and sizes and with those of transparent boxes

While we conducted a survey among the kids they prefered with attractive wrappers They preferred with those of different shapes and sizes and with those of transparent boxes

When we went for retail survey we went for retail survey we came to know what their selling strategies were and what were their mostly demanded chocolates We even went to Amul for survey where we identified that consumers of Amul chocolate are in plenty

When we surveyed about chocolate consumed in our college canteen all of them said that Dairymilks were in demand So from all the above information we come to know that Cadbury is most popular brand than other brands of chocolates

17

Annexure 4

FINDINGS

We have to various conclusions from this project We have found that

1 INCOME

Income as a factor affects purchase decision indirectly ie almost all brands of chocolate are at different prices Hence it might not affect consumers purchase decision then However the same brands of chocolate are priced more at Malls So consumers become more sensitive at such places

For a consumer who has an income less than Rs 10000 he will not always be able to afford 20-50 rupees for a chocolate Hence he might spend 5 rupees for a chocolate

2 BRAND PREFRENCE amp BRAND LOYALTY

A large number of consumers have a first preference of Cadbury followed by Nestle Amul and parle Yet if the preferred brand is not available then they would switch to other brands This shows that the level of brand loyalty among consumers is very low Although Cadbury is one of the most reputed brands it does not have brand loyalty

3 AVAILIBILITY

Availability is not a factor that a consumer keeps in mind while purchasing any brand of chocolate However now a days chocolates being necessity in many occasions a consumers will purchase any brand available if his preferred brand is not available This shows that availability affects a consumer to a great extent

Taste

Many consumers purchase a brand of chocolates on the basis of how the chocolate tastes consumers appeal that they find few of the chocolates bitter in taste Hence they tend to avoid purchasing those brands as far as possible Yet on the other hand there are consumers who love the bitter taste of chocolate Hence it is a matter of consumerrsquos percieverence

Size

We have seen that usually chocolates of rs 5 to rs 10 are consumed This is followed by chocolats of rs 203050 and so on However all brands are not available in all size

18

Hence consumer who want to purchase chocolates of rs 5 and 10 of a particular brand and if it is not available than they would switch to another brand in which that size is available

PricePrice is an important factor affecting the purchase decision of consumers However consumers were agreed that they are ready to buy a brand even if its price increase They were not ready to compromise their perceived quality of the brand

Packaging and Labeling

A large number of consumers said that packaging and labeling of a brand of chocolates does not affect the purchase decision While the consumer among the lower age group especially the kids gives priority to packaging and labeling Packaging can help brand volumes but cannot be the driver

Brand awareness

Consumers are well aware of the various brands in the market One of the brands that they were ever to recall the most was CADBURY While surveying we found that CADBURY today has become synonymous to chocolates

Advertisement

Advertisement plays a small role in influencing the purchase decision of consumer Advertisement has managed to make consumer aware of various brands It helps in influencing the purchase decision only when all the brands of chocolates are available Brands like CADBURY NESTLE AMUL spend lot of money on advertisement to increase their sales on the other hand local manufactures without advertisement manage to sell their products in the market

Own experienceA large no of consumers said that they would purchase a brand of chocolates based on their own experience of taste perceived quality and so on

Brand nameIt can be seen that various brand have created a brand image for themselves in the minds of consumers When all the brands are available they purchased chocolates on the basis of brand name

Word of mouthMost consumers felt that word of mouth does not affect their purchased decision

19

No brand differentiation

There is no brand differentiation in the market ie even though people ask for dairy milk they satisfied if they walk away with 5starkit-kat munch amul or any other chocolates of any brand

RECOMMENDATION

1 The national brands of chocolates should also be made easily available and consumable in rural areas too 2 The local chocolates are widely popular in specific localities They could even be supplied in a wider area3 As per public opinion the respondents even wanted to experience varities in taste in a specific brands The companies can look forward to that4 In the lower age group between 10 to 20 the teens even wanted different sizes in shapes in chocolate For eg free of our respondents even desire to have chocolats of heart shapes specially for gifting others5 No schemes are introduced in chocolates on regular basis Schemes should be their for few of the expensive brands6 For bringing inovvation chocolate should even be made of different colurs For eg chocolates of Black White Red pink blue and so on would be widely accepted by the children

20

21

Page 4: Chocolate Industry

ACKNOWLEDGEMENT

Though this acknowledement we express our sincere gratitude towards all those people who have helped us in the preparation of this project which has been learing exprience

We appreciate the co-operation extended by the marketing heads of all the companies in giving us all imformation that made it possible for us to make this project

We would like to thank the director Prof(Mrs)HDTrivedi the faculty the computer lab operator the librarian and the administative staff of BK majumdar institute of business administration-HLBBA for their support

Finally we express our sincere thanks to Prof Arun Prasad who guided us throughout the project and gave us valuable suggestions and encouragement

4

EXECUTIVE SUMMARY OFCHOCOLATE INDUSTRY

BACKGROUND

The origins of chocolate can be traced back to the ancient Maya and Aztec civilizations in Central America who first enjoyed chocolate a much-prized spicy drink made from roasted cocoa beans Chocolates bars are first manufactured at a confectionery level in the year 1765 Chocolate was first manufactured at Milan The chocolate industry has undergone a sea of changes in past years Advent of industrialization opened new avenues for chocolate industry There are many famous brands are available in chocolate industry Some imminent brands in chocolate are Nestle Cadbury Amul Gand many more The process of chocolate making is quite interesting The therapeutic uses of chocolates are established scientifically Many international brands of chocolates are available worldwide Depending upon what goes into it there are many types of chocolates available now These types of chocolate include cocoa powder dark chocolates bittersweet chocolate semi sweet chocolate sweet dark chocolate milk chocolate The chocolate industry has grown to a worldwide industry topping $50 Billion in retail sales worldwide and continues to show healthy growth Recently there has been an increasing trend towards high quality chocolates such as chocolates with high cocoa content and or chocolates flavored with natural flavors and rich spices

OBJECTIVE

The primary objective of our project is to study the factors influencing the purchase decision of rural and urban consumers consuming different types of national and local chocolates

The secondary objective of our project is to find out different types of marketing strategies used by retailers and wholesalers

5

SCOPE

The scope of our research is confined to the chocolate industry only We will be limiting our findings to only retail consumption The scope of our survey will be limiting to Ahmedabad city only For the purpose of our study we will choose four representatives of this industry viz

NATIONAL BRANDS LOCAL BRANDS

1) Cadbury 1) Kent

2) Nestle India 2) Michi

3) Amul 3) Pelican

4) Parle 4) Ayush

RESEARCH METHODOLOGY

RESEARCH TYPE

We will follow the descriptive type of research

RESEARCH DESIGN

We will adopt the survey method and observation method A survey research will help us in studying the extent to which the factors influence the purchase decisions

6

DATA SOURCES

PRIMARY SOURCES

We will collect a survey amongst consumers of different types of chocolates We will also collect information from various company offices

SECONDARY SOURCES

We will referring to various websites journals books magazines etc

RESEARCH INSTRUMENT

The research instrument will be questionnaire

CONCLUSION

From this project we will expect to find out the factors affecting the extent to which they affect the purchase decisions

7

ContentPreface 1Acknowledgement 2Executive summary 3

ParticularExecutive SummaryObjective and ScopeObjectiveScopeResearch MethodologyIdentification of TopicResearch typeResearch DesignData collectionSample SizeSelection of BrandsResearch InstrumentsHistory of chocolate Chocolate industry- An OverviewNational brandsCadburyParleAmulNestle IndiaLocal brandsMichirsquosBaba kentLinkageSecondary objectiveMarket strategyTarget audiencePackaging amp labellingQuestionnaireAnalysisNational brands analysisLocal brands analysisOverall view Kids surveyFinding amp recommendationBibliography

Bibliography

Books

8

Philip kotler and Gary Armstrong principle of marketing10th edition

News Papers

The economic times

The Hindu business line

Websites

wwwrediffcomwwwbusiness-standardcomwwwIndia-statscomwwwAgencyfaqscomwwwEquitymastercomwwwmyiriscomwwwthehindubusinesslinecom

9

Annexure 1

Types of Chocolates

Depending on what is added to (or removed from) the chocolate liquor different flavors andvarieties of chocolate are produced Each has a different chemical make-up the differences are notsolely in the taste1 Unsweetened or Baking chocolate is simply cooled hardened chocolate liquor It is usedprimarily as an ingredient in recipes or as a garnish2 Semi-sweet chocolate is also used primarily in recipes It has extra cocoa butter and sugaradded Sweet cooking chocolate is basically the same with more sugar for taste3 Milk chocolate is chocolate liquor with extra cocoa butter sugar milk and vanilla addedThis is the most popular form for chocolate It is primarily an eating chocolateCocoa is chocolate liquor with much of the cocoa butter removed creating a fine powder It canpick up moisture and odors from other products so you should keep cocoa in a cool dry placetightly covered

There are several kinds of cocoa1048707 Low-fat cocoa has the most fat removed It typically has less than ten percent cocoa butterremaining1048707 Medium-fat cocoa has anywhere from ten to twenty-two percent cocoa butter in it1048707 Drinking or Breakfast cocoa has over twenty-two percent left in it This is the cocoa used inchocolate milk powders like Nestles Quik1048707 Dutch process cocoa is cocoa which has been specially processed to neutralize the naturalacids in the chocolate It is slightly darker and has a much different taste than regular cocoaDecorators chocolate or confectioners chocolate isnt really chocolate at all but a sort of chocolateflavored candy used for things such as covering strawberries It was created to melt easily and hardenquickly but it isnt chocolate

Categories of Chocolates

Commercial Chocolates are available in the following forms1 Bars or Moulded Chocolates2 Counts3 Panned Chocolates (Gems)4 Eacuteclairs5 Assorted ChocolatesBars or moulded chocolates (like Dairy Milk Truffle Amul Milk Chocolate Nestle Premium andNestle Milky Bar) comprise the largest segment accounting for 37 of the total chocolate market involume terms Wafer chocolates such as Kit-Kat and Perk also belong to this segment Pannedchocolates accounts for 10 of the total chocolate market

10

MAJOR PLAYERS

In Ahmedabad In India1) Ravalgaon 1) Cadbury2) Palican 2) Nestle3) Rommy 3) Amul 4) Ayush 4) Parle5) Kim Kim 5) Candyman6) Micky 6) Parry

11

Annexure 2

MARKETING STRATEGY

PRODUCTS

Decision regarding appearance size shapes weight brand packing etc are taken

PRICE

Decision regarding prize policy credit policy are taken In Urja fabrics pvt ltd the price is governed by market value based price The customerrsquos queries have to be answered within 24 hours

PLACE

Decision regarding wholesale and retail merchants channels of distribution physical decision etc are taken

PROMOTION

Decision regarding advertisement personal selling publicity and sales promotion are taken

COMPETITORS

When competition is healthy it motivates and encourages the companies to bring about drastic change in its management to stand with the competition They are forced to improve the quality of goods and prove them at low rates

12

Followings are the marketing strategy adopted by different malls of Ahmedabad city

Place No of chocolates

Price Packaging Supply chain Advertisement

Big Bazzar

Cadbury Rs5 to 90

Box bottle wrapper

Head Office(Mumbai)

___

Gallops CadburyNestle

Rs 10 to 300

Wrapper BoxPaper packaging

Local suppliers ___

Amul (retail outlet)

Amul Rs 5 to 150

Box packetswrapper

Dairy TV advertisement

Reliance Fresh

Cadbury Rs 5 to 150

Box bottle wrappers

Head Office(Mumbai)

___

Place Majorcustomers

Profit Occasions Selling Units

Schemes

Big Bazzar All 7-10 Rakhi ampDiwali Single units __Gallops Collegians amp

Children20 Christmas

Diwali RakhiSingle Units __

Amul(retail outlet)

All (majority youngsters)

20 All time hit Single units __

Reliance fresh Cadbury __ Adults Single units __

Analysis

These are the information available from different malls and retail outlets of Ahmadabad From the above information we can clearly says that mostly all the malls are selling chocolates Cadbury brand only and very few are selling nestle brand All of them are chocolates between the ranges of Rs 5 to Rs 300 Mostly they are supplying chocolates from the head office of Bombay only Amul supplying chocolates from dairy The profit margin rate of all of them is between 7 to 20 All of them are selling chocolates in single unit only and none of them are providing any schemes on sale of chocolate

13

Following are the marketing strategies adopted by different types of Shops of Ahmedabad city

Place No of chocolates Price Packaging Supply ChainShrinath parlor Cadbury

NestleAmulParle

5 -5005-10Rs 5Rs 1

__Gokul DasVeer coAshok mrktngPrecise sell

Ambika Dairyfarm

CadburyNestleParle

1 to 1751 to 10050 to 5

Tin Boxes Gokul dasVeer coPrecise sell

Krishna dairy CadburyNestleParle

1-3001-10050-5

Tinboxes Gokul DasVeer coPrecise sell

RB stores CadburyNestleParle

5-302-12050-1

__Gokul DasVeer coPrecise sell

Place Major customers Profit Occasion SellingUnits

Schemes

Shrinath parlor Kids amp adults 7-8 Rakhi amp Diwali Single units __

Ambika dairy farm

Kids 5-8 All occasions Single units Discounts at festivals

Krishna dairy farm

Kids 10-25 All occasions Single units __

RB stores Kids amp Adults 7-10 Rakhi diwalibirthday

Single units __

Analysis

These are the different type of available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Cadbury nestle amul parleThey are selling chocolates between the price range of 050 paisa to Rs 300All the retailers are purchasing Cadbury chocolates from only one distributor and that is Gokul das Same as they are purchasing nestle chocolates from veer co Parle from precise sells and amul from ashok marketing Generally all the shops earning profit between 7-25 And they are selling chocolates in single units

Following are the marketing strategies of rural brands of chocolates adopted by different shops in Ahmedabad city

Place No of chocolates Price Packaging Supply Chain

14

Aashapura KentLemoMichi

Rs 25 to 2 Plastic Wrapper Kalupur

Jitubhai Kent PelicanAayushKim Kim

Rs 25 to 5 Wrapper Kalupur

Chamunda stores KentLemoMichiPelicanAayushKim KimAasha

Rs 10 to 30 Tin boxes Packets Jar

Naroda

Satyavijay KentLemoMichiPelicanAayushKim Kim

Rs 10 to 50 Tin boxes Packets Jar

Naroda

Place Major customers Profit Occasion SellingUnits

Schemes

Aashapura Kids amp adults 5-7 - Single units __

Jitubhai Kids 5-8 All occasions Single units __Chamunda stores

JashriDeepak storesSurajNaveenshah

8-11 All occasions except feb-march

Bulk __

Satyavijay Kids amp Adults 7-10 __ Bulk __

Analaysis

These are the different type of rural brand chocolates available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Kent Lemo Michi and Aayush They are selling chocolates between the price range of Rs 10 to Rs 30 All the wholesellers are purchasing Kent chocolates from only one distributor and that is Kent Food Product Naroda Same as they are purchasing

15

Michi chocolates from JRJ Products Ltd Madhupur etc and they are selling these chocolates in bulk to retailers Generally all the shops earning profit between 5-7 And they are selling chocolates in single unit between the price ranges of 25 to 2

16

Annexure 3

OVERALL REVIEW

Talking about chocolate market in a nutshell we came to know that now dayrsquos chocolates of national band are mostly popular within both local and urban people The main reason being that the availability of national brands of chocolates like Cadbury Amul Nestle and Parle are widely available even in slums Itrsquos becoming popular in both rural and urban areas

Generally observed phenomenon is that women prefer more chocolates than men do Youngster and children up to specific age are the target audience They are concentrated and their needs are taken into consideration

For urban area precisely Dairy milk 5 star eclair munch kit Kat celebrations temptations are more famous while in rural areas chocolates like kacha aam cokanaka aayush roomy pelican and roul gun are the most consumed

While we concuted a survey among the kids they preferred those chocolates with attractive wrappers They preferred those of different shapes and sizes and with those of transparent boxes

While we conducted a survey among the kids they prefered with attractive wrappers They preferred with those of different shapes and sizes and with those of transparent boxes

When we went for retail survey we went for retail survey we came to know what their selling strategies were and what were their mostly demanded chocolates We even went to Amul for survey where we identified that consumers of Amul chocolate are in plenty

When we surveyed about chocolate consumed in our college canteen all of them said that Dairymilks were in demand So from all the above information we come to know that Cadbury is most popular brand than other brands of chocolates

17

Annexure 4

FINDINGS

We have to various conclusions from this project We have found that

1 INCOME

Income as a factor affects purchase decision indirectly ie almost all brands of chocolate are at different prices Hence it might not affect consumers purchase decision then However the same brands of chocolate are priced more at Malls So consumers become more sensitive at such places

For a consumer who has an income less than Rs 10000 he will not always be able to afford 20-50 rupees for a chocolate Hence he might spend 5 rupees for a chocolate

2 BRAND PREFRENCE amp BRAND LOYALTY

A large number of consumers have a first preference of Cadbury followed by Nestle Amul and parle Yet if the preferred brand is not available then they would switch to other brands This shows that the level of brand loyalty among consumers is very low Although Cadbury is one of the most reputed brands it does not have brand loyalty

3 AVAILIBILITY

Availability is not a factor that a consumer keeps in mind while purchasing any brand of chocolate However now a days chocolates being necessity in many occasions a consumers will purchase any brand available if his preferred brand is not available This shows that availability affects a consumer to a great extent

Taste

Many consumers purchase a brand of chocolates on the basis of how the chocolate tastes consumers appeal that they find few of the chocolates bitter in taste Hence they tend to avoid purchasing those brands as far as possible Yet on the other hand there are consumers who love the bitter taste of chocolate Hence it is a matter of consumerrsquos percieverence

Size

We have seen that usually chocolates of rs 5 to rs 10 are consumed This is followed by chocolats of rs 203050 and so on However all brands are not available in all size

18

Hence consumer who want to purchase chocolates of rs 5 and 10 of a particular brand and if it is not available than they would switch to another brand in which that size is available

PricePrice is an important factor affecting the purchase decision of consumers However consumers were agreed that they are ready to buy a brand even if its price increase They were not ready to compromise their perceived quality of the brand

Packaging and Labeling

A large number of consumers said that packaging and labeling of a brand of chocolates does not affect the purchase decision While the consumer among the lower age group especially the kids gives priority to packaging and labeling Packaging can help brand volumes but cannot be the driver

Brand awareness

Consumers are well aware of the various brands in the market One of the brands that they were ever to recall the most was CADBURY While surveying we found that CADBURY today has become synonymous to chocolates

Advertisement

Advertisement plays a small role in influencing the purchase decision of consumer Advertisement has managed to make consumer aware of various brands It helps in influencing the purchase decision only when all the brands of chocolates are available Brands like CADBURY NESTLE AMUL spend lot of money on advertisement to increase their sales on the other hand local manufactures without advertisement manage to sell their products in the market

Own experienceA large no of consumers said that they would purchase a brand of chocolates based on their own experience of taste perceived quality and so on

Brand nameIt can be seen that various brand have created a brand image for themselves in the minds of consumers When all the brands are available they purchased chocolates on the basis of brand name

Word of mouthMost consumers felt that word of mouth does not affect their purchased decision

19

No brand differentiation

There is no brand differentiation in the market ie even though people ask for dairy milk they satisfied if they walk away with 5starkit-kat munch amul or any other chocolates of any brand

RECOMMENDATION

1 The national brands of chocolates should also be made easily available and consumable in rural areas too 2 The local chocolates are widely popular in specific localities They could even be supplied in a wider area3 As per public opinion the respondents even wanted to experience varities in taste in a specific brands The companies can look forward to that4 In the lower age group between 10 to 20 the teens even wanted different sizes in shapes in chocolate For eg free of our respondents even desire to have chocolats of heart shapes specially for gifting others5 No schemes are introduced in chocolates on regular basis Schemes should be their for few of the expensive brands6 For bringing inovvation chocolate should even be made of different colurs For eg chocolates of Black White Red pink blue and so on would be widely accepted by the children

20

21

Page 5: Chocolate Industry

EXECUTIVE SUMMARY OFCHOCOLATE INDUSTRY

BACKGROUND

The origins of chocolate can be traced back to the ancient Maya and Aztec civilizations in Central America who first enjoyed chocolate a much-prized spicy drink made from roasted cocoa beans Chocolates bars are first manufactured at a confectionery level in the year 1765 Chocolate was first manufactured at Milan The chocolate industry has undergone a sea of changes in past years Advent of industrialization opened new avenues for chocolate industry There are many famous brands are available in chocolate industry Some imminent brands in chocolate are Nestle Cadbury Amul Gand many more The process of chocolate making is quite interesting The therapeutic uses of chocolates are established scientifically Many international brands of chocolates are available worldwide Depending upon what goes into it there are many types of chocolates available now These types of chocolate include cocoa powder dark chocolates bittersweet chocolate semi sweet chocolate sweet dark chocolate milk chocolate The chocolate industry has grown to a worldwide industry topping $50 Billion in retail sales worldwide and continues to show healthy growth Recently there has been an increasing trend towards high quality chocolates such as chocolates with high cocoa content and or chocolates flavored with natural flavors and rich spices

OBJECTIVE

The primary objective of our project is to study the factors influencing the purchase decision of rural and urban consumers consuming different types of national and local chocolates

The secondary objective of our project is to find out different types of marketing strategies used by retailers and wholesalers

5

SCOPE

The scope of our research is confined to the chocolate industry only We will be limiting our findings to only retail consumption The scope of our survey will be limiting to Ahmedabad city only For the purpose of our study we will choose four representatives of this industry viz

NATIONAL BRANDS LOCAL BRANDS

1) Cadbury 1) Kent

2) Nestle India 2) Michi

3) Amul 3) Pelican

4) Parle 4) Ayush

RESEARCH METHODOLOGY

RESEARCH TYPE

We will follow the descriptive type of research

RESEARCH DESIGN

We will adopt the survey method and observation method A survey research will help us in studying the extent to which the factors influence the purchase decisions

6

DATA SOURCES

PRIMARY SOURCES

We will collect a survey amongst consumers of different types of chocolates We will also collect information from various company offices

SECONDARY SOURCES

We will referring to various websites journals books magazines etc

RESEARCH INSTRUMENT

The research instrument will be questionnaire

CONCLUSION

From this project we will expect to find out the factors affecting the extent to which they affect the purchase decisions

7

ContentPreface 1Acknowledgement 2Executive summary 3

ParticularExecutive SummaryObjective and ScopeObjectiveScopeResearch MethodologyIdentification of TopicResearch typeResearch DesignData collectionSample SizeSelection of BrandsResearch InstrumentsHistory of chocolate Chocolate industry- An OverviewNational brandsCadburyParleAmulNestle IndiaLocal brandsMichirsquosBaba kentLinkageSecondary objectiveMarket strategyTarget audiencePackaging amp labellingQuestionnaireAnalysisNational brands analysisLocal brands analysisOverall view Kids surveyFinding amp recommendationBibliography

Bibliography

Books

8

Philip kotler and Gary Armstrong principle of marketing10th edition

News Papers

The economic times

The Hindu business line

Websites

wwwrediffcomwwwbusiness-standardcomwwwIndia-statscomwwwAgencyfaqscomwwwEquitymastercomwwwmyiriscomwwwthehindubusinesslinecom

9

Annexure 1

Types of Chocolates

Depending on what is added to (or removed from) the chocolate liquor different flavors andvarieties of chocolate are produced Each has a different chemical make-up the differences are notsolely in the taste1 Unsweetened or Baking chocolate is simply cooled hardened chocolate liquor It is usedprimarily as an ingredient in recipes or as a garnish2 Semi-sweet chocolate is also used primarily in recipes It has extra cocoa butter and sugaradded Sweet cooking chocolate is basically the same with more sugar for taste3 Milk chocolate is chocolate liquor with extra cocoa butter sugar milk and vanilla addedThis is the most popular form for chocolate It is primarily an eating chocolateCocoa is chocolate liquor with much of the cocoa butter removed creating a fine powder It canpick up moisture and odors from other products so you should keep cocoa in a cool dry placetightly covered

There are several kinds of cocoa1048707 Low-fat cocoa has the most fat removed It typically has less than ten percent cocoa butterremaining1048707 Medium-fat cocoa has anywhere from ten to twenty-two percent cocoa butter in it1048707 Drinking or Breakfast cocoa has over twenty-two percent left in it This is the cocoa used inchocolate milk powders like Nestles Quik1048707 Dutch process cocoa is cocoa which has been specially processed to neutralize the naturalacids in the chocolate It is slightly darker and has a much different taste than regular cocoaDecorators chocolate or confectioners chocolate isnt really chocolate at all but a sort of chocolateflavored candy used for things such as covering strawberries It was created to melt easily and hardenquickly but it isnt chocolate

Categories of Chocolates

Commercial Chocolates are available in the following forms1 Bars or Moulded Chocolates2 Counts3 Panned Chocolates (Gems)4 Eacuteclairs5 Assorted ChocolatesBars or moulded chocolates (like Dairy Milk Truffle Amul Milk Chocolate Nestle Premium andNestle Milky Bar) comprise the largest segment accounting for 37 of the total chocolate market involume terms Wafer chocolates such as Kit-Kat and Perk also belong to this segment Pannedchocolates accounts for 10 of the total chocolate market

10

MAJOR PLAYERS

In Ahmedabad In India1) Ravalgaon 1) Cadbury2) Palican 2) Nestle3) Rommy 3) Amul 4) Ayush 4) Parle5) Kim Kim 5) Candyman6) Micky 6) Parry

11

Annexure 2

MARKETING STRATEGY

PRODUCTS

Decision regarding appearance size shapes weight brand packing etc are taken

PRICE

Decision regarding prize policy credit policy are taken In Urja fabrics pvt ltd the price is governed by market value based price The customerrsquos queries have to be answered within 24 hours

PLACE

Decision regarding wholesale and retail merchants channels of distribution physical decision etc are taken

PROMOTION

Decision regarding advertisement personal selling publicity and sales promotion are taken

COMPETITORS

When competition is healthy it motivates and encourages the companies to bring about drastic change in its management to stand with the competition They are forced to improve the quality of goods and prove them at low rates

12

Followings are the marketing strategy adopted by different malls of Ahmedabad city

Place No of chocolates

Price Packaging Supply chain Advertisement

Big Bazzar

Cadbury Rs5 to 90

Box bottle wrapper

Head Office(Mumbai)

___

Gallops CadburyNestle

Rs 10 to 300

Wrapper BoxPaper packaging

Local suppliers ___

Amul (retail outlet)

Amul Rs 5 to 150

Box packetswrapper

Dairy TV advertisement

Reliance Fresh

Cadbury Rs 5 to 150

Box bottle wrappers

Head Office(Mumbai)

___

Place Majorcustomers

Profit Occasions Selling Units

Schemes

Big Bazzar All 7-10 Rakhi ampDiwali Single units __Gallops Collegians amp

Children20 Christmas

Diwali RakhiSingle Units __

Amul(retail outlet)

All (majority youngsters)

20 All time hit Single units __

Reliance fresh Cadbury __ Adults Single units __

Analysis

These are the information available from different malls and retail outlets of Ahmadabad From the above information we can clearly says that mostly all the malls are selling chocolates Cadbury brand only and very few are selling nestle brand All of them are chocolates between the ranges of Rs 5 to Rs 300 Mostly they are supplying chocolates from the head office of Bombay only Amul supplying chocolates from dairy The profit margin rate of all of them is between 7 to 20 All of them are selling chocolates in single unit only and none of them are providing any schemes on sale of chocolate

13

Following are the marketing strategies adopted by different types of Shops of Ahmedabad city

Place No of chocolates Price Packaging Supply ChainShrinath parlor Cadbury

NestleAmulParle

5 -5005-10Rs 5Rs 1

__Gokul DasVeer coAshok mrktngPrecise sell

Ambika Dairyfarm

CadburyNestleParle

1 to 1751 to 10050 to 5

Tin Boxes Gokul dasVeer coPrecise sell

Krishna dairy CadburyNestleParle

1-3001-10050-5

Tinboxes Gokul DasVeer coPrecise sell

RB stores CadburyNestleParle

5-302-12050-1

__Gokul DasVeer coPrecise sell

Place Major customers Profit Occasion SellingUnits

Schemes

Shrinath parlor Kids amp adults 7-8 Rakhi amp Diwali Single units __

Ambika dairy farm

Kids 5-8 All occasions Single units Discounts at festivals

Krishna dairy farm

Kids 10-25 All occasions Single units __

RB stores Kids amp Adults 7-10 Rakhi diwalibirthday

Single units __

Analysis

These are the different type of available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Cadbury nestle amul parleThey are selling chocolates between the price range of 050 paisa to Rs 300All the retailers are purchasing Cadbury chocolates from only one distributor and that is Gokul das Same as they are purchasing nestle chocolates from veer co Parle from precise sells and amul from ashok marketing Generally all the shops earning profit between 7-25 And they are selling chocolates in single units

Following are the marketing strategies of rural brands of chocolates adopted by different shops in Ahmedabad city

Place No of chocolates Price Packaging Supply Chain

14

Aashapura KentLemoMichi

Rs 25 to 2 Plastic Wrapper Kalupur

Jitubhai Kent PelicanAayushKim Kim

Rs 25 to 5 Wrapper Kalupur

Chamunda stores KentLemoMichiPelicanAayushKim KimAasha

Rs 10 to 30 Tin boxes Packets Jar

Naroda

Satyavijay KentLemoMichiPelicanAayushKim Kim

Rs 10 to 50 Tin boxes Packets Jar

Naroda

Place Major customers Profit Occasion SellingUnits

Schemes

Aashapura Kids amp adults 5-7 - Single units __

Jitubhai Kids 5-8 All occasions Single units __Chamunda stores

JashriDeepak storesSurajNaveenshah

8-11 All occasions except feb-march

Bulk __

Satyavijay Kids amp Adults 7-10 __ Bulk __

Analaysis

These are the different type of rural brand chocolates available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Kent Lemo Michi and Aayush They are selling chocolates between the price range of Rs 10 to Rs 30 All the wholesellers are purchasing Kent chocolates from only one distributor and that is Kent Food Product Naroda Same as they are purchasing

15

Michi chocolates from JRJ Products Ltd Madhupur etc and they are selling these chocolates in bulk to retailers Generally all the shops earning profit between 5-7 And they are selling chocolates in single unit between the price ranges of 25 to 2

16

Annexure 3

OVERALL REVIEW

Talking about chocolate market in a nutshell we came to know that now dayrsquos chocolates of national band are mostly popular within both local and urban people The main reason being that the availability of national brands of chocolates like Cadbury Amul Nestle and Parle are widely available even in slums Itrsquos becoming popular in both rural and urban areas

Generally observed phenomenon is that women prefer more chocolates than men do Youngster and children up to specific age are the target audience They are concentrated and their needs are taken into consideration

For urban area precisely Dairy milk 5 star eclair munch kit Kat celebrations temptations are more famous while in rural areas chocolates like kacha aam cokanaka aayush roomy pelican and roul gun are the most consumed

While we concuted a survey among the kids they preferred those chocolates with attractive wrappers They preferred those of different shapes and sizes and with those of transparent boxes

While we conducted a survey among the kids they prefered with attractive wrappers They preferred with those of different shapes and sizes and with those of transparent boxes

When we went for retail survey we went for retail survey we came to know what their selling strategies were and what were their mostly demanded chocolates We even went to Amul for survey where we identified that consumers of Amul chocolate are in plenty

When we surveyed about chocolate consumed in our college canteen all of them said that Dairymilks were in demand So from all the above information we come to know that Cadbury is most popular brand than other brands of chocolates

17

Annexure 4

FINDINGS

We have to various conclusions from this project We have found that

1 INCOME

Income as a factor affects purchase decision indirectly ie almost all brands of chocolate are at different prices Hence it might not affect consumers purchase decision then However the same brands of chocolate are priced more at Malls So consumers become more sensitive at such places

For a consumer who has an income less than Rs 10000 he will not always be able to afford 20-50 rupees for a chocolate Hence he might spend 5 rupees for a chocolate

2 BRAND PREFRENCE amp BRAND LOYALTY

A large number of consumers have a first preference of Cadbury followed by Nestle Amul and parle Yet if the preferred brand is not available then they would switch to other brands This shows that the level of brand loyalty among consumers is very low Although Cadbury is one of the most reputed brands it does not have brand loyalty

3 AVAILIBILITY

Availability is not a factor that a consumer keeps in mind while purchasing any brand of chocolate However now a days chocolates being necessity in many occasions a consumers will purchase any brand available if his preferred brand is not available This shows that availability affects a consumer to a great extent

Taste

Many consumers purchase a brand of chocolates on the basis of how the chocolate tastes consumers appeal that they find few of the chocolates bitter in taste Hence they tend to avoid purchasing those brands as far as possible Yet on the other hand there are consumers who love the bitter taste of chocolate Hence it is a matter of consumerrsquos percieverence

Size

We have seen that usually chocolates of rs 5 to rs 10 are consumed This is followed by chocolats of rs 203050 and so on However all brands are not available in all size

18

Hence consumer who want to purchase chocolates of rs 5 and 10 of a particular brand and if it is not available than they would switch to another brand in which that size is available

PricePrice is an important factor affecting the purchase decision of consumers However consumers were agreed that they are ready to buy a brand even if its price increase They were not ready to compromise their perceived quality of the brand

Packaging and Labeling

A large number of consumers said that packaging and labeling of a brand of chocolates does not affect the purchase decision While the consumer among the lower age group especially the kids gives priority to packaging and labeling Packaging can help brand volumes but cannot be the driver

Brand awareness

Consumers are well aware of the various brands in the market One of the brands that they were ever to recall the most was CADBURY While surveying we found that CADBURY today has become synonymous to chocolates

Advertisement

Advertisement plays a small role in influencing the purchase decision of consumer Advertisement has managed to make consumer aware of various brands It helps in influencing the purchase decision only when all the brands of chocolates are available Brands like CADBURY NESTLE AMUL spend lot of money on advertisement to increase their sales on the other hand local manufactures without advertisement manage to sell their products in the market

Own experienceA large no of consumers said that they would purchase a brand of chocolates based on their own experience of taste perceived quality and so on

Brand nameIt can be seen that various brand have created a brand image for themselves in the minds of consumers When all the brands are available they purchased chocolates on the basis of brand name

Word of mouthMost consumers felt that word of mouth does not affect their purchased decision

19

No brand differentiation

There is no brand differentiation in the market ie even though people ask for dairy milk they satisfied if they walk away with 5starkit-kat munch amul or any other chocolates of any brand

RECOMMENDATION

1 The national brands of chocolates should also be made easily available and consumable in rural areas too 2 The local chocolates are widely popular in specific localities They could even be supplied in a wider area3 As per public opinion the respondents even wanted to experience varities in taste in a specific brands The companies can look forward to that4 In the lower age group between 10 to 20 the teens even wanted different sizes in shapes in chocolate For eg free of our respondents even desire to have chocolats of heart shapes specially for gifting others5 No schemes are introduced in chocolates on regular basis Schemes should be their for few of the expensive brands6 For bringing inovvation chocolate should even be made of different colurs For eg chocolates of Black White Red pink blue and so on would be widely accepted by the children

20

21

Page 6: Chocolate Industry

SCOPE

The scope of our research is confined to the chocolate industry only We will be limiting our findings to only retail consumption The scope of our survey will be limiting to Ahmedabad city only For the purpose of our study we will choose four representatives of this industry viz

NATIONAL BRANDS LOCAL BRANDS

1) Cadbury 1) Kent

2) Nestle India 2) Michi

3) Amul 3) Pelican

4) Parle 4) Ayush

RESEARCH METHODOLOGY

RESEARCH TYPE

We will follow the descriptive type of research

RESEARCH DESIGN

We will adopt the survey method and observation method A survey research will help us in studying the extent to which the factors influence the purchase decisions

6

DATA SOURCES

PRIMARY SOURCES

We will collect a survey amongst consumers of different types of chocolates We will also collect information from various company offices

SECONDARY SOURCES

We will referring to various websites journals books magazines etc

RESEARCH INSTRUMENT

The research instrument will be questionnaire

CONCLUSION

From this project we will expect to find out the factors affecting the extent to which they affect the purchase decisions

7

ContentPreface 1Acknowledgement 2Executive summary 3

ParticularExecutive SummaryObjective and ScopeObjectiveScopeResearch MethodologyIdentification of TopicResearch typeResearch DesignData collectionSample SizeSelection of BrandsResearch InstrumentsHistory of chocolate Chocolate industry- An OverviewNational brandsCadburyParleAmulNestle IndiaLocal brandsMichirsquosBaba kentLinkageSecondary objectiveMarket strategyTarget audiencePackaging amp labellingQuestionnaireAnalysisNational brands analysisLocal brands analysisOverall view Kids surveyFinding amp recommendationBibliography

Bibliography

Books

8

Philip kotler and Gary Armstrong principle of marketing10th edition

News Papers

The economic times

The Hindu business line

Websites

wwwrediffcomwwwbusiness-standardcomwwwIndia-statscomwwwAgencyfaqscomwwwEquitymastercomwwwmyiriscomwwwthehindubusinesslinecom

9

Annexure 1

Types of Chocolates

Depending on what is added to (or removed from) the chocolate liquor different flavors andvarieties of chocolate are produced Each has a different chemical make-up the differences are notsolely in the taste1 Unsweetened or Baking chocolate is simply cooled hardened chocolate liquor It is usedprimarily as an ingredient in recipes or as a garnish2 Semi-sweet chocolate is also used primarily in recipes It has extra cocoa butter and sugaradded Sweet cooking chocolate is basically the same with more sugar for taste3 Milk chocolate is chocolate liquor with extra cocoa butter sugar milk and vanilla addedThis is the most popular form for chocolate It is primarily an eating chocolateCocoa is chocolate liquor with much of the cocoa butter removed creating a fine powder It canpick up moisture and odors from other products so you should keep cocoa in a cool dry placetightly covered

There are several kinds of cocoa1048707 Low-fat cocoa has the most fat removed It typically has less than ten percent cocoa butterremaining1048707 Medium-fat cocoa has anywhere from ten to twenty-two percent cocoa butter in it1048707 Drinking or Breakfast cocoa has over twenty-two percent left in it This is the cocoa used inchocolate milk powders like Nestles Quik1048707 Dutch process cocoa is cocoa which has been specially processed to neutralize the naturalacids in the chocolate It is slightly darker and has a much different taste than regular cocoaDecorators chocolate or confectioners chocolate isnt really chocolate at all but a sort of chocolateflavored candy used for things such as covering strawberries It was created to melt easily and hardenquickly but it isnt chocolate

Categories of Chocolates

Commercial Chocolates are available in the following forms1 Bars or Moulded Chocolates2 Counts3 Panned Chocolates (Gems)4 Eacuteclairs5 Assorted ChocolatesBars or moulded chocolates (like Dairy Milk Truffle Amul Milk Chocolate Nestle Premium andNestle Milky Bar) comprise the largest segment accounting for 37 of the total chocolate market involume terms Wafer chocolates such as Kit-Kat and Perk also belong to this segment Pannedchocolates accounts for 10 of the total chocolate market

10

MAJOR PLAYERS

In Ahmedabad In India1) Ravalgaon 1) Cadbury2) Palican 2) Nestle3) Rommy 3) Amul 4) Ayush 4) Parle5) Kim Kim 5) Candyman6) Micky 6) Parry

11

Annexure 2

MARKETING STRATEGY

PRODUCTS

Decision regarding appearance size shapes weight brand packing etc are taken

PRICE

Decision regarding prize policy credit policy are taken In Urja fabrics pvt ltd the price is governed by market value based price The customerrsquos queries have to be answered within 24 hours

PLACE

Decision regarding wholesale and retail merchants channels of distribution physical decision etc are taken

PROMOTION

Decision regarding advertisement personal selling publicity and sales promotion are taken

COMPETITORS

When competition is healthy it motivates and encourages the companies to bring about drastic change in its management to stand with the competition They are forced to improve the quality of goods and prove them at low rates

12

Followings are the marketing strategy adopted by different malls of Ahmedabad city

Place No of chocolates

Price Packaging Supply chain Advertisement

Big Bazzar

Cadbury Rs5 to 90

Box bottle wrapper

Head Office(Mumbai)

___

Gallops CadburyNestle

Rs 10 to 300

Wrapper BoxPaper packaging

Local suppliers ___

Amul (retail outlet)

Amul Rs 5 to 150

Box packetswrapper

Dairy TV advertisement

Reliance Fresh

Cadbury Rs 5 to 150

Box bottle wrappers

Head Office(Mumbai)

___

Place Majorcustomers

Profit Occasions Selling Units

Schemes

Big Bazzar All 7-10 Rakhi ampDiwali Single units __Gallops Collegians amp

Children20 Christmas

Diwali RakhiSingle Units __

Amul(retail outlet)

All (majority youngsters)

20 All time hit Single units __

Reliance fresh Cadbury __ Adults Single units __

Analysis

These are the information available from different malls and retail outlets of Ahmadabad From the above information we can clearly says that mostly all the malls are selling chocolates Cadbury brand only and very few are selling nestle brand All of them are chocolates between the ranges of Rs 5 to Rs 300 Mostly they are supplying chocolates from the head office of Bombay only Amul supplying chocolates from dairy The profit margin rate of all of them is between 7 to 20 All of them are selling chocolates in single unit only and none of them are providing any schemes on sale of chocolate

13

Following are the marketing strategies adopted by different types of Shops of Ahmedabad city

Place No of chocolates Price Packaging Supply ChainShrinath parlor Cadbury

NestleAmulParle

5 -5005-10Rs 5Rs 1

__Gokul DasVeer coAshok mrktngPrecise sell

Ambika Dairyfarm

CadburyNestleParle

1 to 1751 to 10050 to 5

Tin Boxes Gokul dasVeer coPrecise sell

Krishna dairy CadburyNestleParle

1-3001-10050-5

Tinboxes Gokul DasVeer coPrecise sell

RB stores CadburyNestleParle

5-302-12050-1

__Gokul DasVeer coPrecise sell

Place Major customers Profit Occasion SellingUnits

Schemes

Shrinath parlor Kids amp adults 7-8 Rakhi amp Diwali Single units __

Ambika dairy farm

Kids 5-8 All occasions Single units Discounts at festivals

Krishna dairy farm

Kids 10-25 All occasions Single units __

RB stores Kids amp Adults 7-10 Rakhi diwalibirthday

Single units __

Analysis

These are the different type of available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Cadbury nestle amul parleThey are selling chocolates between the price range of 050 paisa to Rs 300All the retailers are purchasing Cadbury chocolates from only one distributor and that is Gokul das Same as they are purchasing nestle chocolates from veer co Parle from precise sells and amul from ashok marketing Generally all the shops earning profit between 7-25 And they are selling chocolates in single units

Following are the marketing strategies of rural brands of chocolates adopted by different shops in Ahmedabad city

Place No of chocolates Price Packaging Supply Chain

14

Aashapura KentLemoMichi

Rs 25 to 2 Plastic Wrapper Kalupur

Jitubhai Kent PelicanAayushKim Kim

Rs 25 to 5 Wrapper Kalupur

Chamunda stores KentLemoMichiPelicanAayushKim KimAasha

Rs 10 to 30 Tin boxes Packets Jar

Naroda

Satyavijay KentLemoMichiPelicanAayushKim Kim

Rs 10 to 50 Tin boxes Packets Jar

Naroda

Place Major customers Profit Occasion SellingUnits

Schemes

Aashapura Kids amp adults 5-7 - Single units __

Jitubhai Kids 5-8 All occasions Single units __Chamunda stores

JashriDeepak storesSurajNaveenshah

8-11 All occasions except feb-march

Bulk __

Satyavijay Kids amp Adults 7-10 __ Bulk __

Analaysis

These are the different type of rural brand chocolates available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Kent Lemo Michi and Aayush They are selling chocolates between the price range of Rs 10 to Rs 30 All the wholesellers are purchasing Kent chocolates from only one distributor and that is Kent Food Product Naroda Same as they are purchasing

15

Michi chocolates from JRJ Products Ltd Madhupur etc and they are selling these chocolates in bulk to retailers Generally all the shops earning profit between 5-7 And they are selling chocolates in single unit between the price ranges of 25 to 2

16

Annexure 3

OVERALL REVIEW

Talking about chocolate market in a nutshell we came to know that now dayrsquos chocolates of national band are mostly popular within both local and urban people The main reason being that the availability of national brands of chocolates like Cadbury Amul Nestle and Parle are widely available even in slums Itrsquos becoming popular in both rural and urban areas

Generally observed phenomenon is that women prefer more chocolates than men do Youngster and children up to specific age are the target audience They are concentrated and their needs are taken into consideration

For urban area precisely Dairy milk 5 star eclair munch kit Kat celebrations temptations are more famous while in rural areas chocolates like kacha aam cokanaka aayush roomy pelican and roul gun are the most consumed

While we concuted a survey among the kids they preferred those chocolates with attractive wrappers They preferred those of different shapes and sizes and with those of transparent boxes

While we conducted a survey among the kids they prefered with attractive wrappers They preferred with those of different shapes and sizes and with those of transparent boxes

When we went for retail survey we went for retail survey we came to know what their selling strategies were and what were their mostly demanded chocolates We even went to Amul for survey where we identified that consumers of Amul chocolate are in plenty

When we surveyed about chocolate consumed in our college canteen all of them said that Dairymilks were in demand So from all the above information we come to know that Cadbury is most popular brand than other brands of chocolates

17

Annexure 4

FINDINGS

We have to various conclusions from this project We have found that

1 INCOME

Income as a factor affects purchase decision indirectly ie almost all brands of chocolate are at different prices Hence it might not affect consumers purchase decision then However the same brands of chocolate are priced more at Malls So consumers become more sensitive at such places

For a consumer who has an income less than Rs 10000 he will not always be able to afford 20-50 rupees for a chocolate Hence he might spend 5 rupees for a chocolate

2 BRAND PREFRENCE amp BRAND LOYALTY

A large number of consumers have a first preference of Cadbury followed by Nestle Amul and parle Yet if the preferred brand is not available then they would switch to other brands This shows that the level of brand loyalty among consumers is very low Although Cadbury is one of the most reputed brands it does not have brand loyalty

3 AVAILIBILITY

Availability is not a factor that a consumer keeps in mind while purchasing any brand of chocolate However now a days chocolates being necessity in many occasions a consumers will purchase any brand available if his preferred brand is not available This shows that availability affects a consumer to a great extent

Taste

Many consumers purchase a brand of chocolates on the basis of how the chocolate tastes consumers appeal that they find few of the chocolates bitter in taste Hence they tend to avoid purchasing those brands as far as possible Yet on the other hand there are consumers who love the bitter taste of chocolate Hence it is a matter of consumerrsquos percieverence

Size

We have seen that usually chocolates of rs 5 to rs 10 are consumed This is followed by chocolats of rs 203050 and so on However all brands are not available in all size

18

Hence consumer who want to purchase chocolates of rs 5 and 10 of a particular brand and if it is not available than they would switch to another brand in which that size is available

PricePrice is an important factor affecting the purchase decision of consumers However consumers were agreed that they are ready to buy a brand even if its price increase They were not ready to compromise their perceived quality of the brand

Packaging and Labeling

A large number of consumers said that packaging and labeling of a brand of chocolates does not affect the purchase decision While the consumer among the lower age group especially the kids gives priority to packaging and labeling Packaging can help brand volumes but cannot be the driver

Brand awareness

Consumers are well aware of the various brands in the market One of the brands that they were ever to recall the most was CADBURY While surveying we found that CADBURY today has become synonymous to chocolates

Advertisement

Advertisement plays a small role in influencing the purchase decision of consumer Advertisement has managed to make consumer aware of various brands It helps in influencing the purchase decision only when all the brands of chocolates are available Brands like CADBURY NESTLE AMUL spend lot of money on advertisement to increase their sales on the other hand local manufactures without advertisement manage to sell their products in the market

Own experienceA large no of consumers said that they would purchase a brand of chocolates based on their own experience of taste perceived quality and so on

Brand nameIt can be seen that various brand have created a brand image for themselves in the minds of consumers When all the brands are available they purchased chocolates on the basis of brand name

Word of mouthMost consumers felt that word of mouth does not affect their purchased decision

19

No brand differentiation

There is no brand differentiation in the market ie even though people ask for dairy milk they satisfied if they walk away with 5starkit-kat munch amul or any other chocolates of any brand

RECOMMENDATION

1 The national brands of chocolates should also be made easily available and consumable in rural areas too 2 The local chocolates are widely popular in specific localities They could even be supplied in a wider area3 As per public opinion the respondents even wanted to experience varities in taste in a specific brands The companies can look forward to that4 In the lower age group between 10 to 20 the teens even wanted different sizes in shapes in chocolate For eg free of our respondents even desire to have chocolats of heart shapes specially for gifting others5 No schemes are introduced in chocolates on regular basis Schemes should be their for few of the expensive brands6 For bringing inovvation chocolate should even be made of different colurs For eg chocolates of Black White Red pink blue and so on would be widely accepted by the children

20

21

Page 7: Chocolate Industry

DATA SOURCES

PRIMARY SOURCES

We will collect a survey amongst consumers of different types of chocolates We will also collect information from various company offices

SECONDARY SOURCES

We will referring to various websites journals books magazines etc

RESEARCH INSTRUMENT

The research instrument will be questionnaire

CONCLUSION

From this project we will expect to find out the factors affecting the extent to which they affect the purchase decisions

7

ContentPreface 1Acknowledgement 2Executive summary 3

ParticularExecutive SummaryObjective and ScopeObjectiveScopeResearch MethodologyIdentification of TopicResearch typeResearch DesignData collectionSample SizeSelection of BrandsResearch InstrumentsHistory of chocolate Chocolate industry- An OverviewNational brandsCadburyParleAmulNestle IndiaLocal brandsMichirsquosBaba kentLinkageSecondary objectiveMarket strategyTarget audiencePackaging amp labellingQuestionnaireAnalysisNational brands analysisLocal brands analysisOverall view Kids surveyFinding amp recommendationBibliography

Bibliography

Books

8

Philip kotler and Gary Armstrong principle of marketing10th edition

News Papers

The economic times

The Hindu business line

Websites

wwwrediffcomwwwbusiness-standardcomwwwIndia-statscomwwwAgencyfaqscomwwwEquitymastercomwwwmyiriscomwwwthehindubusinesslinecom

9

Annexure 1

Types of Chocolates

Depending on what is added to (or removed from) the chocolate liquor different flavors andvarieties of chocolate are produced Each has a different chemical make-up the differences are notsolely in the taste1 Unsweetened or Baking chocolate is simply cooled hardened chocolate liquor It is usedprimarily as an ingredient in recipes or as a garnish2 Semi-sweet chocolate is also used primarily in recipes It has extra cocoa butter and sugaradded Sweet cooking chocolate is basically the same with more sugar for taste3 Milk chocolate is chocolate liquor with extra cocoa butter sugar milk and vanilla addedThis is the most popular form for chocolate It is primarily an eating chocolateCocoa is chocolate liquor with much of the cocoa butter removed creating a fine powder It canpick up moisture and odors from other products so you should keep cocoa in a cool dry placetightly covered

There are several kinds of cocoa1048707 Low-fat cocoa has the most fat removed It typically has less than ten percent cocoa butterremaining1048707 Medium-fat cocoa has anywhere from ten to twenty-two percent cocoa butter in it1048707 Drinking or Breakfast cocoa has over twenty-two percent left in it This is the cocoa used inchocolate milk powders like Nestles Quik1048707 Dutch process cocoa is cocoa which has been specially processed to neutralize the naturalacids in the chocolate It is slightly darker and has a much different taste than regular cocoaDecorators chocolate or confectioners chocolate isnt really chocolate at all but a sort of chocolateflavored candy used for things such as covering strawberries It was created to melt easily and hardenquickly but it isnt chocolate

Categories of Chocolates

Commercial Chocolates are available in the following forms1 Bars or Moulded Chocolates2 Counts3 Panned Chocolates (Gems)4 Eacuteclairs5 Assorted ChocolatesBars or moulded chocolates (like Dairy Milk Truffle Amul Milk Chocolate Nestle Premium andNestle Milky Bar) comprise the largest segment accounting for 37 of the total chocolate market involume terms Wafer chocolates such as Kit-Kat and Perk also belong to this segment Pannedchocolates accounts for 10 of the total chocolate market

10

MAJOR PLAYERS

In Ahmedabad In India1) Ravalgaon 1) Cadbury2) Palican 2) Nestle3) Rommy 3) Amul 4) Ayush 4) Parle5) Kim Kim 5) Candyman6) Micky 6) Parry

11

Annexure 2

MARKETING STRATEGY

PRODUCTS

Decision regarding appearance size shapes weight brand packing etc are taken

PRICE

Decision regarding prize policy credit policy are taken In Urja fabrics pvt ltd the price is governed by market value based price The customerrsquos queries have to be answered within 24 hours

PLACE

Decision regarding wholesale and retail merchants channels of distribution physical decision etc are taken

PROMOTION

Decision regarding advertisement personal selling publicity and sales promotion are taken

COMPETITORS

When competition is healthy it motivates and encourages the companies to bring about drastic change in its management to stand with the competition They are forced to improve the quality of goods and prove them at low rates

12

Followings are the marketing strategy adopted by different malls of Ahmedabad city

Place No of chocolates

Price Packaging Supply chain Advertisement

Big Bazzar

Cadbury Rs5 to 90

Box bottle wrapper

Head Office(Mumbai)

___

Gallops CadburyNestle

Rs 10 to 300

Wrapper BoxPaper packaging

Local suppliers ___

Amul (retail outlet)

Amul Rs 5 to 150

Box packetswrapper

Dairy TV advertisement

Reliance Fresh

Cadbury Rs 5 to 150

Box bottle wrappers

Head Office(Mumbai)

___

Place Majorcustomers

Profit Occasions Selling Units

Schemes

Big Bazzar All 7-10 Rakhi ampDiwali Single units __Gallops Collegians amp

Children20 Christmas

Diwali RakhiSingle Units __

Amul(retail outlet)

All (majority youngsters)

20 All time hit Single units __

Reliance fresh Cadbury __ Adults Single units __

Analysis

These are the information available from different malls and retail outlets of Ahmadabad From the above information we can clearly says that mostly all the malls are selling chocolates Cadbury brand only and very few are selling nestle brand All of them are chocolates between the ranges of Rs 5 to Rs 300 Mostly they are supplying chocolates from the head office of Bombay only Amul supplying chocolates from dairy The profit margin rate of all of them is between 7 to 20 All of them are selling chocolates in single unit only and none of them are providing any schemes on sale of chocolate

13

Following are the marketing strategies adopted by different types of Shops of Ahmedabad city

Place No of chocolates Price Packaging Supply ChainShrinath parlor Cadbury

NestleAmulParle

5 -5005-10Rs 5Rs 1

__Gokul DasVeer coAshok mrktngPrecise sell

Ambika Dairyfarm

CadburyNestleParle

1 to 1751 to 10050 to 5

Tin Boxes Gokul dasVeer coPrecise sell

Krishna dairy CadburyNestleParle

1-3001-10050-5

Tinboxes Gokul DasVeer coPrecise sell

RB stores CadburyNestleParle

5-302-12050-1

__Gokul DasVeer coPrecise sell

Place Major customers Profit Occasion SellingUnits

Schemes

Shrinath parlor Kids amp adults 7-8 Rakhi amp Diwali Single units __

Ambika dairy farm

Kids 5-8 All occasions Single units Discounts at festivals

Krishna dairy farm

Kids 10-25 All occasions Single units __

RB stores Kids amp Adults 7-10 Rakhi diwalibirthday

Single units __

Analysis

These are the different type of available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Cadbury nestle amul parleThey are selling chocolates between the price range of 050 paisa to Rs 300All the retailers are purchasing Cadbury chocolates from only one distributor and that is Gokul das Same as they are purchasing nestle chocolates from veer co Parle from precise sells and amul from ashok marketing Generally all the shops earning profit between 7-25 And they are selling chocolates in single units

Following are the marketing strategies of rural brands of chocolates adopted by different shops in Ahmedabad city

Place No of chocolates Price Packaging Supply Chain

14

Aashapura KentLemoMichi

Rs 25 to 2 Plastic Wrapper Kalupur

Jitubhai Kent PelicanAayushKim Kim

Rs 25 to 5 Wrapper Kalupur

Chamunda stores KentLemoMichiPelicanAayushKim KimAasha

Rs 10 to 30 Tin boxes Packets Jar

Naroda

Satyavijay KentLemoMichiPelicanAayushKim Kim

Rs 10 to 50 Tin boxes Packets Jar

Naroda

Place Major customers Profit Occasion SellingUnits

Schemes

Aashapura Kids amp adults 5-7 - Single units __

Jitubhai Kids 5-8 All occasions Single units __Chamunda stores

JashriDeepak storesSurajNaveenshah

8-11 All occasions except feb-march

Bulk __

Satyavijay Kids amp Adults 7-10 __ Bulk __

Analaysis

These are the different type of rural brand chocolates available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Kent Lemo Michi and Aayush They are selling chocolates between the price range of Rs 10 to Rs 30 All the wholesellers are purchasing Kent chocolates from only one distributor and that is Kent Food Product Naroda Same as they are purchasing

15

Michi chocolates from JRJ Products Ltd Madhupur etc and they are selling these chocolates in bulk to retailers Generally all the shops earning profit between 5-7 And they are selling chocolates in single unit between the price ranges of 25 to 2

16

Annexure 3

OVERALL REVIEW

Talking about chocolate market in a nutshell we came to know that now dayrsquos chocolates of national band are mostly popular within both local and urban people The main reason being that the availability of national brands of chocolates like Cadbury Amul Nestle and Parle are widely available even in slums Itrsquos becoming popular in both rural and urban areas

Generally observed phenomenon is that women prefer more chocolates than men do Youngster and children up to specific age are the target audience They are concentrated and their needs are taken into consideration

For urban area precisely Dairy milk 5 star eclair munch kit Kat celebrations temptations are more famous while in rural areas chocolates like kacha aam cokanaka aayush roomy pelican and roul gun are the most consumed

While we concuted a survey among the kids they preferred those chocolates with attractive wrappers They preferred those of different shapes and sizes and with those of transparent boxes

While we conducted a survey among the kids they prefered with attractive wrappers They preferred with those of different shapes and sizes and with those of transparent boxes

When we went for retail survey we went for retail survey we came to know what their selling strategies were and what were their mostly demanded chocolates We even went to Amul for survey where we identified that consumers of Amul chocolate are in plenty

When we surveyed about chocolate consumed in our college canteen all of them said that Dairymilks were in demand So from all the above information we come to know that Cadbury is most popular brand than other brands of chocolates

17

Annexure 4

FINDINGS

We have to various conclusions from this project We have found that

1 INCOME

Income as a factor affects purchase decision indirectly ie almost all brands of chocolate are at different prices Hence it might not affect consumers purchase decision then However the same brands of chocolate are priced more at Malls So consumers become more sensitive at such places

For a consumer who has an income less than Rs 10000 he will not always be able to afford 20-50 rupees for a chocolate Hence he might spend 5 rupees for a chocolate

2 BRAND PREFRENCE amp BRAND LOYALTY

A large number of consumers have a first preference of Cadbury followed by Nestle Amul and parle Yet if the preferred brand is not available then they would switch to other brands This shows that the level of brand loyalty among consumers is very low Although Cadbury is one of the most reputed brands it does not have brand loyalty

3 AVAILIBILITY

Availability is not a factor that a consumer keeps in mind while purchasing any brand of chocolate However now a days chocolates being necessity in many occasions a consumers will purchase any brand available if his preferred brand is not available This shows that availability affects a consumer to a great extent

Taste

Many consumers purchase a brand of chocolates on the basis of how the chocolate tastes consumers appeal that they find few of the chocolates bitter in taste Hence they tend to avoid purchasing those brands as far as possible Yet on the other hand there are consumers who love the bitter taste of chocolate Hence it is a matter of consumerrsquos percieverence

Size

We have seen that usually chocolates of rs 5 to rs 10 are consumed This is followed by chocolats of rs 203050 and so on However all brands are not available in all size

18

Hence consumer who want to purchase chocolates of rs 5 and 10 of a particular brand and if it is not available than they would switch to another brand in which that size is available

PricePrice is an important factor affecting the purchase decision of consumers However consumers were agreed that they are ready to buy a brand even if its price increase They were not ready to compromise their perceived quality of the brand

Packaging and Labeling

A large number of consumers said that packaging and labeling of a brand of chocolates does not affect the purchase decision While the consumer among the lower age group especially the kids gives priority to packaging and labeling Packaging can help brand volumes but cannot be the driver

Brand awareness

Consumers are well aware of the various brands in the market One of the brands that they were ever to recall the most was CADBURY While surveying we found that CADBURY today has become synonymous to chocolates

Advertisement

Advertisement plays a small role in influencing the purchase decision of consumer Advertisement has managed to make consumer aware of various brands It helps in influencing the purchase decision only when all the brands of chocolates are available Brands like CADBURY NESTLE AMUL spend lot of money on advertisement to increase their sales on the other hand local manufactures without advertisement manage to sell their products in the market

Own experienceA large no of consumers said that they would purchase a brand of chocolates based on their own experience of taste perceived quality and so on

Brand nameIt can be seen that various brand have created a brand image for themselves in the minds of consumers When all the brands are available they purchased chocolates on the basis of brand name

Word of mouthMost consumers felt that word of mouth does not affect their purchased decision

19

No brand differentiation

There is no brand differentiation in the market ie even though people ask for dairy milk they satisfied if they walk away with 5starkit-kat munch amul or any other chocolates of any brand

RECOMMENDATION

1 The national brands of chocolates should also be made easily available and consumable in rural areas too 2 The local chocolates are widely popular in specific localities They could even be supplied in a wider area3 As per public opinion the respondents even wanted to experience varities in taste in a specific brands The companies can look forward to that4 In the lower age group between 10 to 20 the teens even wanted different sizes in shapes in chocolate For eg free of our respondents even desire to have chocolats of heart shapes specially for gifting others5 No schemes are introduced in chocolates on regular basis Schemes should be their for few of the expensive brands6 For bringing inovvation chocolate should even be made of different colurs For eg chocolates of Black White Red pink blue and so on would be widely accepted by the children

20

21

Page 8: Chocolate Industry

ContentPreface 1Acknowledgement 2Executive summary 3

ParticularExecutive SummaryObjective and ScopeObjectiveScopeResearch MethodologyIdentification of TopicResearch typeResearch DesignData collectionSample SizeSelection of BrandsResearch InstrumentsHistory of chocolate Chocolate industry- An OverviewNational brandsCadburyParleAmulNestle IndiaLocal brandsMichirsquosBaba kentLinkageSecondary objectiveMarket strategyTarget audiencePackaging amp labellingQuestionnaireAnalysisNational brands analysisLocal brands analysisOverall view Kids surveyFinding amp recommendationBibliography

Bibliography

Books

8

Philip kotler and Gary Armstrong principle of marketing10th edition

News Papers

The economic times

The Hindu business line

Websites

wwwrediffcomwwwbusiness-standardcomwwwIndia-statscomwwwAgencyfaqscomwwwEquitymastercomwwwmyiriscomwwwthehindubusinesslinecom

9

Annexure 1

Types of Chocolates

Depending on what is added to (or removed from) the chocolate liquor different flavors andvarieties of chocolate are produced Each has a different chemical make-up the differences are notsolely in the taste1 Unsweetened or Baking chocolate is simply cooled hardened chocolate liquor It is usedprimarily as an ingredient in recipes or as a garnish2 Semi-sweet chocolate is also used primarily in recipes It has extra cocoa butter and sugaradded Sweet cooking chocolate is basically the same with more sugar for taste3 Milk chocolate is chocolate liquor with extra cocoa butter sugar milk and vanilla addedThis is the most popular form for chocolate It is primarily an eating chocolateCocoa is chocolate liquor with much of the cocoa butter removed creating a fine powder It canpick up moisture and odors from other products so you should keep cocoa in a cool dry placetightly covered

There are several kinds of cocoa1048707 Low-fat cocoa has the most fat removed It typically has less than ten percent cocoa butterremaining1048707 Medium-fat cocoa has anywhere from ten to twenty-two percent cocoa butter in it1048707 Drinking or Breakfast cocoa has over twenty-two percent left in it This is the cocoa used inchocolate milk powders like Nestles Quik1048707 Dutch process cocoa is cocoa which has been specially processed to neutralize the naturalacids in the chocolate It is slightly darker and has a much different taste than regular cocoaDecorators chocolate or confectioners chocolate isnt really chocolate at all but a sort of chocolateflavored candy used for things such as covering strawberries It was created to melt easily and hardenquickly but it isnt chocolate

Categories of Chocolates

Commercial Chocolates are available in the following forms1 Bars or Moulded Chocolates2 Counts3 Panned Chocolates (Gems)4 Eacuteclairs5 Assorted ChocolatesBars or moulded chocolates (like Dairy Milk Truffle Amul Milk Chocolate Nestle Premium andNestle Milky Bar) comprise the largest segment accounting for 37 of the total chocolate market involume terms Wafer chocolates such as Kit-Kat and Perk also belong to this segment Pannedchocolates accounts for 10 of the total chocolate market

10

MAJOR PLAYERS

In Ahmedabad In India1) Ravalgaon 1) Cadbury2) Palican 2) Nestle3) Rommy 3) Amul 4) Ayush 4) Parle5) Kim Kim 5) Candyman6) Micky 6) Parry

11

Annexure 2

MARKETING STRATEGY

PRODUCTS

Decision regarding appearance size shapes weight brand packing etc are taken

PRICE

Decision regarding prize policy credit policy are taken In Urja fabrics pvt ltd the price is governed by market value based price The customerrsquos queries have to be answered within 24 hours

PLACE

Decision regarding wholesale and retail merchants channels of distribution physical decision etc are taken

PROMOTION

Decision regarding advertisement personal selling publicity and sales promotion are taken

COMPETITORS

When competition is healthy it motivates and encourages the companies to bring about drastic change in its management to stand with the competition They are forced to improve the quality of goods and prove them at low rates

12

Followings are the marketing strategy adopted by different malls of Ahmedabad city

Place No of chocolates

Price Packaging Supply chain Advertisement

Big Bazzar

Cadbury Rs5 to 90

Box bottle wrapper

Head Office(Mumbai)

___

Gallops CadburyNestle

Rs 10 to 300

Wrapper BoxPaper packaging

Local suppliers ___

Amul (retail outlet)

Amul Rs 5 to 150

Box packetswrapper

Dairy TV advertisement

Reliance Fresh

Cadbury Rs 5 to 150

Box bottle wrappers

Head Office(Mumbai)

___

Place Majorcustomers

Profit Occasions Selling Units

Schemes

Big Bazzar All 7-10 Rakhi ampDiwali Single units __Gallops Collegians amp

Children20 Christmas

Diwali RakhiSingle Units __

Amul(retail outlet)

All (majority youngsters)

20 All time hit Single units __

Reliance fresh Cadbury __ Adults Single units __

Analysis

These are the information available from different malls and retail outlets of Ahmadabad From the above information we can clearly says that mostly all the malls are selling chocolates Cadbury brand only and very few are selling nestle brand All of them are chocolates between the ranges of Rs 5 to Rs 300 Mostly they are supplying chocolates from the head office of Bombay only Amul supplying chocolates from dairy The profit margin rate of all of them is between 7 to 20 All of them are selling chocolates in single unit only and none of them are providing any schemes on sale of chocolate

13

Following are the marketing strategies adopted by different types of Shops of Ahmedabad city

Place No of chocolates Price Packaging Supply ChainShrinath parlor Cadbury

NestleAmulParle

5 -5005-10Rs 5Rs 1

__Gokul DasVeer coAshok mrktngPrecise sell

Ambika Dairyfarm

CadburyNestleParle

1 to 1751 to 10050 to 5

Tin Boxes Gokul dasVeer coPrecise sell

Krishna dairy CadburyNestleParle

1-3001-10050-5

Tinboxes Gokul DasVeer coPrecise sell

RB stores CadburyNestleParle

5-302-12050-1

__Gokul DasVeer coPrecise sell

Place Major customers Profit Occasion SellingUnits

Schemes

Shrinath parlor Kids amp adults 7-8 Rakhi amp Diwali Single units __

Ambika dairy farm

Kids 5-8 All occasions Single units Discounts at festivals

Krishna dairy farm

Kids 10-25 All occasions Single units __

RB stores Kids amp Adults 7-10 Rakhi diwalibirthday

Single units __

Analysis

These are the different type of available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Cadbury nestle amul parleThey are selling chocolates between the price range of 050 paisa to Rs 300All the retailers are purchasing Cadbury chocolates from only one distributor and that is Gokul das Same as they are purchasing nestle chocolates from veer co Parle from precise sells and amul from ashok marketing Generally all the shops earning profit between 7-25 And they are selling chocolates in single units

Following are the marketing strategies of rural brands of chocolates adopted by different shops in Ahmedabad city

Place No of chocolates Price Packaging Supply Chain

14

Aashapura KentLemoMichi

Rs 25 to 2 Plastic Wrapper Kalupur

Jitubhai Kent PelicanAayushKim Kim

Rs 25 to 5 Wrapper Kalupur

Chamunda stores KentLemoMichiPelicanAayushKim KimAasha

Rs 10 to 30 Tin boxes Packets Jar

Naroda

Satyavijay KentLemoMichiPelicanAayushKim Kim

Rs 10 to 50 Tin boxes Packets Jar

Naroda

Place Major customers Profit Occasion SellingUnits

Schemes

Aashapura Kids amp adults 5-7 - Single units __

Jitubhai Kids 5-8 All occasions Single units __Chamunda stores

JashriDeepak storesSurajNaveenshah

8-11 All occasions except feb-march

Bulk __

Satyavijay Kids amp Adults 7-10 __ Bulk __

Analaysis

These are the different type of rural brand chocolates available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Kent Lemo Michi and Aayush They are selling chocolates between the price range of Rs 10 to Rs 30 All the wholesellers are purchasing Kent chocolates from only one distributor and that is Kent Food Product Naroda Same as they are purchasing

15

Michi chocolates from JRJ Products Ltd Madhupur etc and they are selling these chocolates in bulk to retailers Generally all the shops earning profit between 5-7 And they are selling chocolates in single unit between the price ranges of 25 to 2

16

Annexure 3

OVERALL REVIEW

Talking about chocolate market in a nutshell we came to know that now dayrsquos chocolates of national band are mostly popular within both local and urban people The main reason being that the availability of national brands of chocolates like Cadbury Amul Nestle and Parle are widely available even in slums Itrsquos becoming popular in both rural and urban areas

Generally observed phenomenon is that women prefer more chocolates than men do Youngster and children up to specific age are the target audience They are concentrated and their needs are taken into consideration

For urban area precisely Dairy milk 5 star eclair munch kit Kat celebrations temptations are more famous while in rural areas chocolates like kacha aam cokanaka aayush roomy pelican and roul gun are the most consumed

While we concuted a survey among the kids they preferred those chocolates with attractive wrappers They preferred those of different shapes and sizes and with those of transparent boxes

While we conducted a survey among the kids they prefered with attractive wrappers They preferred with those of different shapes and sizes and with those of transparent boxes

When we went for retail survey we went for retail survey we came to know what their selling strategies were and what were their mostly demanded chocolates We even went to Amul for survey where we identified that consumers of Amul chocolate are in plenty

When we surveyed about chocolate consumed in our college canteen all of them said that Dairymilks were in demand So from all the above information we come to know that Cadbury is most popular brand than other brands of chocolates

17

Annexure 4

FINDINGS

We have to various conclusions from this project We have found that

1 INCOME

Income as a factor affects purchase decision indirectly ie almost all brands of chocolate are at different prices Hence it might not affect consumers purchase decision then However the same brands of chocolate are priced more at Malls So consumers become more sensitive at such places

For a consumer who has an income less than Rs 10000 he will not always be able to afford 20-50 rupees for a chocolate Hence he might spend 5 rupees for a chocolate

2 BRAND PREFRENCE amp BRAND LOYALTY

A large number of consumers have a first preference of Cadbury followed by Nestle Amul and parle Yet if the preferred brand is not available then they would switch to other brands This shows that the level of brand loyalty among consumers is very low Although Cadbury is one of the most reputed brands it does not have brand loyalty

3 AVAILIBILITY

Availability is not a factor that a consumer keeps in mind while purchasing any brand of chocolate However now a days chocolates being necessity in many occasions a consumers will purchase any brand available if his preferred brand is not available This shows that availability affects a consumer to a great extent

Taste

Many consumers purchase a brand of chocolates on the basis of how the chocolate tastes consumers appeal that they find few of the chocolates bitter in taste Hence they tend to avoid purchasing those brands as far as possible Yet on the other hand there are consumers who love the bitter taste of chocolate Hence it is a matter of consumerrsquos percieverence

Size

We have seen that usually chocolates of rs 5 to rs 10 are consumed This is followed by chocolats of rs 203050 and so on However all brands are not available in all size

18

Hence consumer who want to purchase chocolates of rs 5 and 10 of a particular brand and if it is not available than they would switch to another brand in which that size is available

PricePrice is an important factor affecting the purchase decision of consumers However consumers were agreed that they are ready to buy a brand even if its price increase They were not ready to compromise their perceived quality of the brand

Packaging and Labeling

A large number of consumers said that packaging and labeling of a brand of chocolates does not affect the purchase decision While the consumer among the lower age group especially the kids gives priority to packaging and labeling Packaging can help brand volumes but cannot be the driver

Brand awareness

Consumers are well aware of the various brands in the market One of the brands that they were ever to recall the most was CADBURY While surveying we found that CADBURY today has become synonymous to chocolates

Advertisement

Advertisement plays a small role in influencing the purchase decision of consumer Advertisement has managed to make consumer aware of various brands It helps in influencing the purchase decision only when all the brands of chocolates are available Brands like CADBURY NESTLE AMUL spend lot of money on advertisement to increase their sales on the other hand local manufactures without advertisement manage to sell their products in the market

Own experienceA large no of consumers said that they would purchase a brand of chocolates based on their own experience of taste perceived quality and so on

Brand nameIt can be seen that various brand have created a brand image for themselves in the minds of consumers When all the brands are available they purchased chocolates on the basis of brand name

Word of mouthMost consumers felt that word of mouth does not affect their purchased decision

19

No brand differentiation

There is no brand differentiation in the market ie even though people ask for dairy milk they satisfied if they walk away with 5starkit-kat munch amul or any other chocolates of any brand

RECOMMENDATION

1 The national brands of chocolates should also be made easily available and consumable in rural areas too 2 The local chocolates are widely popular in specific localities They could even be supplied in a wider area3 As per public opinion the respondents even wanted to experience varities in taste in a specific brands The companies can look forward to that4 In the lower age group between 10 to 20 the teens even wanted different sizes in shapes in chocolate For eg free of our respondents even desire to have chocolats of heart shapes specially for gifting others5 No schemes are introduced in chocolates on regular basis Schemes should be their for few of the expensive brands6 For bringing inovvation chocolate should even be made of different colurs For eg chocolates of Black White Red pink blue and so on would be widely accepted by the children

20

21

Page 9: Chocolate Industry

Philip kotler and Gary Armstrong principle of marketing10th edition

News Papers

The economic times

The Hindu business line

Websites

wwwrediffcomwwwbusiness-standardcomwwwIndia-statscomwwwAgencyfaqscomwwwEquitymastercomwwwmyiriscomwwwthehindubusinesslinecom

9

Annexure 1

Types of Chocolates

Depending on what is added to (or removed from) the chocolate liquor different flavors andvarieties of chocolate are produced Each has a different chemical make-up the differences are notsolely in the taste1 Unsweetened or Baking chocolate is simply cooled hardened chocolate liquor It is usedprimarily as an ingredient in recipes or as a garnish2 Semi-sweet chocolate is also used primarily in recipes It has extra cocoa butter and sugaradded Sweet cooking chocolate is basically the same with more sugar for taste3 Milk chocolate is chocolate liquor with extra cocoa butter sugar milk and vanilla addedThis is the most popular form for chocolate It is primarily an eating chocolateCocoa is chocolate liquor with much of the cocoa butter removed creating a fine powder It canpick up moisture and odors from other products so you should keep cocoa in a cool dry placetightly covered

There are several kinds of cocoa1048707 Low-fat cocoa has the most fat removed It typically has less than ten percent cocoa butterremaining1048707 Medium-fat cocoa has anywhere from ten to twenty-two percent cocoa butter in it1048707 Drinking or Breakfast cocoa has over twenty-two percent left in it This is the cocoa used inchocolate milk powders like Nestles Quik1048707 Dutch process cocoa is cocoa which has been specially processed to neutralize the naturalacids in the chocolate It is slightly darker and has a much different taste than regular cocoaDecorators chocolate or confectioners chocolate isnt really chocolate at all but a sort of chocolateflavored candy used for things such as covering strawberries It was created to melt easily and hardenquickly but it isnt chocolate

Categories of Chocolates

Commercial Chocolates are available in the following forms1 Bars or Moulded Chocolates2 Counts3 Panned Chocolates (Gems)4 Eacuteclairs5 Assorted ChocolatesBars or moulded chocolates (like Dairy Milk Truffle Amul Milk Chocolate Nestle Premium andNestle Milky Bar) comprise the largest segment accounting for 37 of the total chocolate market involume terms Wafer chocolates such as Kit-Kat and Perk also belong to this segment Pannedchocolates accounts for 10 of the total chocolate market

10

MAJOR PLAYERS

In Ahmedabad In India1) Ravalgaon 1) Cadbury2) Palican 2) Nestle3) Rommy 3) Amul 4) Ayush 4) Parle5) Kim Kim 5) Candyman6) Micky 6) Parry

11

Annexure 2

MARKETING STRATEGY

PRODUCTS

Decision regarding appearance size shapes weight brand packing etc are taken

PRICE

Decision regarding prize policy credit policy are taken In Urja fabrics pvt ltd the price is governed by market value based price The customerrsquos queries have to be answered within 24 hours

PLACE

Decision regarding wholesale and retail merchants channels of distribution physical decision etc are taken

PROMOTION

Decision regarding advertisement personal selling publicity and sales promotion are taken

COMPETITORS

When competition is healthy it motivates and encourages the companies to bring about drastic change in its management to stand with the competition They are forced to improve the quality of goods and prove them at low rates

12

Followings are the marketing strategy adopted by different malls of Ahmedabad city

Place No of chocolates

Price Packaging Supply chain Advertisement

Big Bazzar

Cadbury Rs5 to 90

Box bottle wrapper

Head Office(Mumbai)

___

Gallops CadburyNestle

Rs 10 to 300

Wrapper BoxPaper packaging

Local suppliers ___

Amul (retail outlet)

Amul Rs 5 to 150

Box packetswrapper

Dairy TV advertisement

Reliance Fresh

Cadbury Rs 5 to 150

Box bottle wrappers

Head Office(Mumbai)

___

Place Majorcustomers

Profit Occasions Selling Units

Schemes

Big Bazzar All 7-10 Rakhi ampDiwali Single units __Gallops Collegians amp

Children20 Christmas

Diwali RakhiSingle Units __

Amul(retail outlet)

All (majority youngsters)

20 All time hit Single units __

Reliance fresh Cadbury __ Adults Single units __

Analysis

These are the information available from different malls and retail outlets of Ahmadabad From the above information we can clearly says that mostly all the malls are selling chocolates Cadbury brand only and very few are selling nestle brand All of them are chocolates between the ranges of Rs 5 to Rs 300 Mostly they are supplying chocolates from the head office of Bombay only Amul supplying chocolates from dairy The profit margin rate of all of them is between 7 to 20 All of them are selling chocolates in single unit only and none of them are providing any schemes on sale of chocolate

13

Following are the marketing strategies adopted by different types of Shops of Ahmedabad city

Place No of chocolates Price Packaging Supply ChainShrinath parlor Cadbury

NestleAmulParle

5 -5005-10Rs 5Rs 1

__Gokul DasVeer coAshok mrktngPrecise sell

Ambika Dairyfarm

CadburyNestleParle

1 to 1751 to 10050 to 5

Tin Boxes Gokul dasVeer coPrecise sell

Krishna dairy CadburyNestleParle

1-3001-10050-5

Tinboxes Gokul DasVeer coPrecise sell

RB stores CadburyNestleParle

5-302-12050-1

__Gokul DasVeer coPrecise sell

Place Major customers Profit Occasion SellingUnits

Schemes

Shrinath parlor Kids amp adults 7-8 Rakhi amp Diwali Single units __

Ambika dairy farm

Kids 5-8 All occasions Single units Discounts at festivals

Krishna dairy farm

Kids 10-25 All occasions Single units __

RB stores Kids amp Adults 7-10 Rakhi diwalibirthday

Single units __

Analysis

These are the different type of available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Cadbury nestle amul parleThey are selling chocolates between the price range of 050 paisa to Rs 300All the retailers are purchasing Cadbury chocolates from only one distributor and that is Gokul das Same as they are purchasing nestle chocolates from veer co Parle from precise sells and amul from ashok marketing Generally all the shops earning profit between 7-25 And they are selling chocolates in single units

Following are the marketing strategies of rural brands of chocolates adopted by different shops in Ahmedabad city

Place No of chocolates Price Packaging Supply Chain

14

Aashapura KentLemoMichi

Rs 25 to 2 Plastic Wrapper Kalupur

Jitubhai Kent PelicanAayushKim Kim

Rs 25 to 5 Wrapper Kalupur

Chamunda stores KentLemoMichiPelicanAayushKim KimAasha

Rs 10 to 30 Tin boxes Packets Jar

Naroda

Satyavijay KentLemoMichiPelicanAayushKim Kim

Rs 10 to 50 Tin boxes Packets Jar

Naroda

Place Major customers Profit Occasion SellingUnits

Schemes

Aashapura Kids amp adults 5-7 - Single units __

Jitubhai Kids 5-8 All occasions Single units __Chamunda stores

JashriDeepak storesSurajNaveenshah

8-11 All occasions except feb-march

Bulk __

Satyavijay Kids amp Adults 7-10 __ Bulk __

Analaysis

These are the different type of rural brand chocolates available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Kent Lemo Michi and Aayush They are selling chocolates between the price range of Rs 10 to Rs 30 All the wholesellers are purchasing Kent chocolates from only one distributor and that is Kent Food Product Naroda Same as they are purchasing

15

Michi chocolates from JRJ Products Ltd Madhupur etc and they are selling these chocolates in bulk to retailers Generally all the shops earning profit between 5-7 And they are selling chocolates in single unit between the price ranges of 25 to 2

16

Annexure 3

OVERALL REVIEW

Talking about chocolate market in a nutshell we came to know that now dayrsquos chocolates of national band are mostly popular within both local and urban people The main reason being that the availability of national brands of chocolates like Cadbury Amul Nestle and Parle are widely available even in slums Itrsquos becoming popular in both rural and urban areas

Generally observed phenomenon is that women prefer more chocolates than men do Youngster and children up to specific age are the target audience They are concentrated and their needs are taken into consideration

For urban area precisely Dairy milk 5 star eclair munch kit Kat celebrations temptations are more famous while in rural areas chocolates like kacha aam cokanaka aayush roomy pelican and roul gun are the most consumed

While we concuted a survey among the kids they preferred those chocolates with attractive wrappers They preferred those of different shapes and sizes and with those of transparent boxes

While we conducted a survey among the kids they prefered with attractive wrappers They preferred with those of different shapes and sizes and with those of transparent boxes

When we went for retail survey we went for retail survey we came to know what their selling strategies were and what were their mostly demanded chocolates We even went to Amul for survey where we identified that consumers of Amul chocolate are in plenty

When we surveyed about chocolate consumed in our college canteen all of them said that Dairymilks were in demand So from all the above information we come to know that Cadbury is most popular brand than other brands of chocolates

17

Annexure 4

FINDINGS

We have to various conclusions from this project We have found that

1 INCOME

Income as a factor affects purchase decision indirectly ie almost all brands of chocolate are at different prices Hence it might not affect consumers purchase decision then However the same brands of chocolate are priced more at Malls So consumers become more sensitive at such places

For a consumer who has an income less than Rs 10000 he will not always be able to afford 20-50 rupees for a chocolate Hence he might spend 5 rupees for a chocolate

2 BRAND PREFRENCE amp BRAND LOYALTY

A large number of consumers have a first preference of Cadbury followed by Nestle Amul and parle Yet if the preferred brand is not available then they would switch to other brands This shows that the level of brand loyalty among consumers is very low Although Cadbury is one of the most reputed brands it does not have brand loyalty

3 AVAILIBILITY

Availability is not a factor that a consumer keeps in mind while purchasing any brand of chocolate However now a days chocolates being necessity in many occasions a consumers will purchase any brand available if his preferred brand is not available This shows that availability affects a consumer to a great extent

Taste

Many consumers purchase a brand of chocolates on the basis of how the chocolate tastes consumers appeal that they find few of the chocolates bitter in taste Hence they tend to avoid purchasing those brands as far as possible Yet on the other hand there are consumers who love the bitter taste of chocolate Hence it is a matter of consumerrsquos percieverence

Size

We have seen that usually chocolates of rs 5 to rs 10 are consumed This is followed by chocolats of rs 203050 and so on However all brands are not available in all size

18

Hence consumer who want to purchase chocolates of rs 5 and 10 of a particular brand and if it is not available than they would switch to another brand in which that size is available

PricePrice is an important factor affecting the purchase decision of consumers However consumers were agreed that they are ready to buy a brand even if its price increase They were not ready to compromise their perceived quality of the brand

Packaging and Labeling

A large number of consumers said that packaging and labeling of a brand of chocolates does not affect the purchase decision While the consumer among the lower age group especially the kids gives priority to packaging and labeling Packaging can help brand volumes but cannot be the driver

Brand awareness

Consumers are well aware of the various brands in the market One of the brands that they were ever to recall the most was CADBURY While surveying we found that CADBURY today has become synonymous to chocolates

Advertisement

Advertisement plays a small role in influencing the purchase decision of consumer Advertisement has managed to make consumer aware of various brands It helps in influencing the purchase decision only when all the brands of chocolates are available Brands like CADBURY NESTLE AMUL spend lot of money on advertisement to increase their sales on the other hand local manufactures without advertisement manage to sell their products in the market

Own experienceA large no of consumers said that they would purchase a brand of chocolates based on their own experience of taste perceived quality and so on

Brand nameIt can be seen that various brand have created a brand image for themselves in the minds of consumers When all the brands are available they purchased chocolates on the basis of brand name

Word of mouthMost consumers felt that word of mouth does not affect their purchased decision

19

No brand differentiation

There is no brand differentiation in the market ie even though people ask for dairy milk they satisfied if they walk away with 5starkit-kat munch amul or any other chocolates of any brand

RECOMMENDATION

1 The national brands of chocolates should also be made easily available and consumable in rural areas too 2 The local chocolates are widely popular in specific localities They could even be supplied in a wider area3 As per public opinion the respondents even wanted to experience varities in taste in a specific brands The companies can look forward to that4 In the lower age group between 10 to 20 the teens even wanted different sizes in shapes in chocolate For eg free of our respondents even desire to have chocolats of heart shapes specially for gifting others5 No schemes are introduced in chocolates on regular basis Schemes should be their for few of the expensive brands6 For bringing inovvation chocolate should even be made of different colurs For eg chocolates of Black White Red pink blue and so on would be widely accepted by the children

20

21

Page 10: Chocolate Industry

Annexure 1

Types of Chocolates

Depending on what is added to (or removed from) the chocolate liquor different flavors andvarieties of chocolate are produced Each has a different chemical make-up the differences are notsolely in the taste1 Unsweetened or Baking chocolate is simply cooled hardened chocolate liquor It is usedprimarily as an ingredient in recipes or as a garnish2 Semi-sweet chocolate is also used primarily in recipes It has extra cocoa butter and sugaradded Sweet cooking chocolate is basically the same with more sugar for taste3 Milk chocolate is chocolate liquor with extra cocoa butter sugar milk and vanilla addedThis is the most popular form for chocolate It is primarily an eating chocolateCocoa is chocolate liquor with much of the cocoa butter removed creating a fine powder It canpick up moisture and odors from other products so you should keep cocoa in a cool dry placetightly covered

There are several kinds of cocoa1048707 Low-fat cocoa has the most fat removed It typically has less than ten percent cocoa butterremaining1048707 Medium-fat cocoa has anywhere from ten to twenty-two percent cocoa butter in it1048707 Drinking or Breakfast cocoa has over twenty-two percent left in it This is the cocoa used inchocolate milk powders like Nestles Quik1048707 Dutch process cocoa is cocoa which has been specially processed to neutralize the naturalacids in the chocolate It is slightly darker and has a much different taste than regular cocoaDecorators chocolate or confectioners chocolate isnt really chocolate at all but a sort of chocolateflavored candy used for things such as covering strawberries It was created to melt easily and hardenquickly but it isnt chocolate

Categories of Chocolates

Commercial Chocolates are available in the following forms1 Bars or Moulded Chocolates2 Counts3 Panned Chocolates (Gems)4 Eacuteclairs5 Assorted ChocolatesBars or moulded chocolates (like Dairy Milk Truffle Amul Milk Chocolate Nestle Premium andNestle Milky Bar) comprise the largest segment accounting for 37 of the total chocolate market involume terms Wafer chocolates such as Kit-Kat and Perk also belong to this segment Pannedchocolates accounts for 10 of the total chocolate market

10

MAJOR PLAYERS

In Ahmedabad In India1) Ravalgaon 1) Cadbury2) Palican 2) Nestle3) Rommy 3) Amul 4) Ayush 4) Parle5) Kim Kim 5) Candyman6) Micky 6) Parry

11

Annexure 2

MARKETING STRATEGY

PRODUCTS

Decision regarding appearance size shapes weight brand packing etc are taken

PRICE

Decision regarding prize policy credit policy are taken In Urja fabrics pvt ltd the price is governed by market value based price The customerrsquos queries have to be answered within 24 hours

PLACE

Decision regarding wholesale and retail merchants channels of distribution physical decision etc are taken

PROMOTION

Decision regarding advertisement personal selling publicity and sales promotion are taken

COMPETITORS

When competition is healthy it motivates and encourages the companies to bring about drastic change in its management to stand with the competition They are forced to improve the quality of goods and prove them at low rates

12

Followings are the marketing strategy adopted by different malls of Ahmedabad city

Place No of chocolates

Price Packaging Supply chain Advertisement

Big Bazzar

Cadbury Rs5 to 90

Box bottle wrapper

Head Office(Mumbai)

___

Gallops CadburyNestle

Rs 10 to 300

Wrapper BoxPaper packaging

Local suppliers ___

Amul (retail outlet)

Amul Rs 5 to 150

Box packetswrapper

Dairy TV advertisement

Reliance Fresh

Cadbury Rs 5 to 150

Box bottle wrappers

Head Office(Mumbai)

___

Place Majorcustomers

Profit Occasions Selling Units

Schemes

Big Bazzar All 7-10 Rakhi ampDiwali Single units __Gallops Collegians amp

Children20 Christmas

Diwali RakhiSingle Units __

Amul(retail outlet)

All (majority youngsters)

20 All time hit Single units __

Reliance fresh Cadbury __ Adults Single units __

Analysis

These are the information available from different malls and retail outlets of Ahmadabad From the above information we can clearly says that mostly all the malls are selling chocolates Cadbury brand only and very few are selling nestle brand All of them are chocolates between the ranges of Rs 5 to Rs 300 Mostly they are supplying chocolates from the head office of Bombay only Amul supplying chocolates from dairy The profit margin rate of all of them is between 7 to 20 All of them are selling chocolates in single unit only and none of them are providing any schemes on sale of chocolate

13

Following are the marketing strategies adopted by different types of Shops of Ahmedabad city

Place No of chocolates Price Packaging Supply ChainShrinath parlor Cadbury

NestleAmulParle

5 -5005-10Rs 5Rs 1

__Gokul DasVeer coAshok mrktngPrecise sell

Ambika Dairyfarm

CadburyNestleParle

1 to 1751 to 10050 to 5

Tin Boxes Gokul dasVeer coPrecise sell

Krishna dairy CadburyNestleParle

1-3001-10050-5

Tinboxes Gokul DasVeer coPrecise sell

RB stores CadburyNestleParle

5-302-12050-1

__Gokul DasVeer coPrecise sell

Place Major customers Profit Occasion SellingUnits

Schemes

Shrinath parlor Kids amp adults 7-8 Rakhi amp Diwali Single units __

Ambika dairy farm

Kids 5-8 All occasions Single units Discounts at festivals

Krishna dairy farm

Kids 10-25 All occasions Single units __

RB stores Kids amp Adults 7-10 Rakhi diwalibirthday

Single units __

Analysis

These are the different type of available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Cadbury nestle amul parleThey are selling chocolates between the price range of 050 paisa to Rs 300All the retailers are purchasing Cadbury chocolates from only one distributor and that is Gokul das Same as they are purchasing nestle chocolates from veer co Parle from precise sells and amul from ashok marketing Generally all the shops earning profit between 7-25 And they are selling chocolates in single units

Following are the marketing strategies of rural brands of chocolates adopted by different shops in Ahmedabad city

Place No of chocolates Price Packaging Supply Chain

14

Aashapura KentLemoMichi

Rs 25 to 2 Plastic Wrapper Kalupur

Jitubhai Kent PelicanAayushKim Kim

Rs 25 to 5 Wrapper Kalupur

Chamunda stores KentLemoMichiPelicanAayushKim KimAasha

Rs 10 to 30 Tin boxes Packets Jar

Naroda

Satyavijay KentLemoMichiPelicanAayushKim Kim

Rs 10 to 50 Tin boxes Packets Jar

Naroda

Place Major customers Profit Occasion SellingUnits

Schemes

Aashapura Kids amp adults 5-7 - Single units __

Jitubhai Kids 5-8 All occasions Single units __Chamunda stores

JashriDeepak storesSurajNaveenshah

8-11 All occasions except feb-march

Bulk __

Satyavijay Kids amp Adults 7-10 __ Bulk __

Analaysis

These are the different type of rural brand chocolates available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Kent Lemo Michi and Aayush They are selling chocolates between the price range of Rs 10 to Rs 30 All the wholesellers are purchasing Kent chocolates from only one distributor and that is Kent Food Product Naroda Same as they are purchasing

15

Michi chocolates from JRJ Products Ltd Madhupur etc and they are selling these chocolates in bulk to retailers Generally all the shops earning profit between 5-7 And they are selling chocolates in single unit between the price ranges of 25 to 2

16

Annexure 3

OVERALL REVIEW

Talking about chocolate market in a nutshell we came to know that now dayrsquos chocolates of national band are mostly popular within both local and urban people The main reason being that the availability of national brands of chocolates like Cadbury Amul Nestle and Parle are widely available even in slums Itrsquos becoming popular in both rural and urban areas

Generally observed phenomenon is that women prefer more chocolates than men do Youngster and children up to specific age are the target audience They are concentrated and their needs are taken into consideration

For urban area precisely Dairy milk 5 star eclair munch kit Kat celebrations temptations are more famous while in rural areas chocolates like kacha aam cokanaka aayush roomy pelican and roul gun are the most consumed

While we concuted a survey among the kids they preferred those chocolates with attractive wrappers They preferred those of different shapes and sizes and with those of transparent boxes

While we conducted a survey among the kids they prefered with attractive wrappers They preferred with those of different shapes and sizes and with those of transparent boxes

When we went for retail survey we went for retail survey we came to know what their selling strategies were and what were their mostly demanded chocolates We even went to Amul for survey where we identified that consumers of Amul chocolate are in plenty

When we surveyed about chocolate consumed in our college canteen all of them said that Dairymilks were in demand So from all the above information we come to know that Cadbury is most popular brand than other brands of chocolates

17

Annexure 4

FINDINGS

We have to various conclusions from this project We have found that

1 INCOME

Income as a factor affects purchase decision indirectly ie almost all brands of chocolate are at different prices Hence it might not affect consumers purchase decision then However the same brands of chocolate are priced more at Malls So consumers become more sensitive at such places

For a consumer who has an income less than Rs 10000 he will not always be able to afford 20-50 rupees for a chocolate Hence he might spend 5 rupees for a chocolate

2 BRAND PREFRENCE amp BRAND LOYALTY

A large number of consumers have a first preference of Cadbury followed by Nestle Amul and parle Yet if the preferred brand is not available then they would switch to other brands This shows that the level of brand loyalty among consumers is very low Although Cadbury is one of the most reputed brands it does not have brand loyalty

3 AVAILIBILITY

Availability is not a factor that a consumer keeps in mind while purchasing any brand of chocolate However now a days chocolates being necessity in many occasions a consumers will purchase any brand available if his preferred brand is not available This shows that availability affects a consumer to a great extent

Taste

Many consumers purchase a brand of chocolates on the basis of how the chocolate tastes consumers appeal that they find few of the chocolates bitter in taste Hence they tend to avoid purchasing those brands as far as possible Yet on the other hand there are consumers who love the bitter taste of chocolate Hence it is a matter of consumerrsquos percieverence

Size

We have seen that usually chocolates of rs 5 to rs 10 are consumed This is followed by chocolats of rs 203050 and so on However all brands are not available in all size

18

Hence consumer who want to purchase chocolates of rs 5 and 10 of a particular brand and if it is not available than they would switch to another brand in which that size is available

PricePrice is an important factor affecting the purchase decision of consumers However consumers were agreed that they are ready to buy a brand even if its price increase They were not ready to compromise their perceived quality of the brand

Packaging and Labeling

A large number of consumers said that packaging and labeling of a brand of chocolates does not affect the purchase decision While the consumer among the lower age group especially the kids gives priority to packaging and labeling Packaging can help brand volumes but cannot be the driver

Brand awareness

Consumers are well aware of the various brands in the market One of the brands that they were ever to recall the most was CADBURY While surveying we found that CADBURY today has become synonymous to chocolates

Advertisement

Advertisement plays a small role in influencing the purchase decision of consumer Advertisement has managed to make consumer aware of various brands It helps in influencing the purchase decision only when all the brands of chocolates are available Brands like CADBURY NESTLE AMUL spend lot of money on advertisement to increase their sales on the other hand local manufactures without advertisement manage to sell their products in the market

Own experienceA large no of consumers said that they would purchase a brand of chocolates based on their own experience of taste perceived quality and so on

Brand nameIt can be seen that various brand have created a brand image for themselves in the minds of consumers When all the brands are available they purchased chocolates on the basis of brand name

Word of mouthMost consumers felt that word of mouth does not affect their purchased decision

19

No brand differentiation

There is no brand differentiation in the market ie even though people ask for dairy milk they satisfied if they walk away with 5starkit-kat munch amul or any other chocolates of any brand

RECOMMENDATION

1 The national brands of chocolates should also be made easily available and consumable in rural areas too 2 The local chocolates are widely popular in specific localities They could even be supplied in a wider area3 As per public opinion the respondents even wanted to experience varities in taste in a specific brands The companies can look forward to that4 In the lower age group between 10 to 20 the teens even wanted different sizes in shapes in chocolate For eg free of our respondents even desire to have chocolats of heart shapes specially for gifting others5 No schemes are introduced in chocolates on regular basis Schemes should be their for few of the expensive brands6 For bringing inovvation chocolate should even be made of different colurs For eg chocolates of Black White Red pink blue and so on would be widely accepted by the children

20

21

Page 11: Chocolate Industry

MAJOR PLAYERS

In Ahmedabad In India1) Ravalgaon 1) Cadbury2) Palican 2) Nestle3) Rommy 3) Amul 4) Ayush 4) Parle5) Kim Kim 5) Candyman6) Micky 6) Parry

11

Annexure 2

MARKETING STRATEGY

PRODUCTS

Decision regarding appearance size shapes weight brand packing etc are taken

PRICE

Decision regarding prize policy credit policy are taken In Urja fabrics pvt ltd the price is governed by market value based price The customerrsquos queries have to be answered within 24 hours

PLACE

Decision regarding wholesale and retail merchants channels of distribution physical decision etc are taken

PROMOTION

Decision regarding advertisement personal selling publicity and sales promotion are taken

COMPETITORS

When competition is healthy it motivates and encourages the companies to bring about drastic change in its management to stand with the competition They are forced to improve the quality of goods and prove them at low rates

12

Followings are the marketing strategy adopted by different malls of Ahmedabad city

Place No of chocolates

Price Packaging Supply chain Advertisement

Big Bazzar

Cadbury Rs5 to 90

Box bottle wrapper

Head Office(Mumbai)

___

Gallops CadburyNestle

Rs 10 to 300

Wrapper BoxPaper packaging

Local suppliers ___

Amul (retail outlet)

Amul Rs 5 to 150

Box packetswrapper

Dairy TV advertisement

Reliance Fresh

Cadbury Rs 5 to 150

Box bottle wrappers

Head Office(Mumbai)

___

Place Majorcustomers

Profit Occasions Selling Units

Schemes

Big Bazzar All 7-10 Rakhi ampDiwali Single units __Gallops Collegians amp

Children20 Christmas

Diwali RakhiSingle Units __

Amul(retail outlet)

All (majority youngsters)

20 All time hit Single units __

Reliance fresh Cadbury __ Adults Single units __

Analysis

These are the information available from different malls and retail outlets of Ahmadabad From the above information we can clearly says that mostly all the malls are selling chocolates Cadbury brand only and very few are selling nestle brand All of them are chocolates between the ranges of Rs 5 to Rs 300 Mostly they are supplying chocolates from the head office of Bombay only Amul supplying chocolates from dairy The profit margin rate of all of them is between 7 to 20 All of them are selling chocolates in single unit only and none of them are providing any schemes on sale of chocolate

13

Following are the marketing strategies adopted by different types of Shops of Ahmedabad city

Place No of chocolates Price Packaging Supply ChainShrinath parlor Cadbury

NestleAmulParle

5 -5005-10Rs 5Rs 1

__Gokul DasVeer coAshok mrktngPrecise sell

Ambika Dairyfarm

CadburyNestleParle

1 to 1751 to 10050 to 5

Tin Boxes Gokul dasVeer coPrecise sell

Krishna dairy CadburyNestleParle

1-3001-10050-5

Tinboxes Gokul DasVeer coPrecise sell

RB stores CadburyNestleParle

5-302-12050-1

__Gokul DasVeer coPrecise sell

Place Major customers Profit Occasion SellingUnits

Schemes

Shrinath parlor Kids amp adults 7-8 Rakhi amp Diwali Single units __

Ambika dairy farm

Kids 5-8 All occasions Single units Discounts at festivals

Krishna dairy farm

Kids 10-25 All occasions Single units __

RB stores Kids amp Adults 7-10 Rakhi diwalibirthday

Single units __

Analysis

These are the different type of available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Cadbury nestle amul parleThey are selling chocolates between the price range of 050 paisa to Rs 300All the retailers are purchasing Cadbury chocolates from only one distributor and that is Gokul das Same as they are purchasing nestle chocolates from veer co Parle from precise sells and amul from ashok marketing Generally all the shops earning profit between 7-25 And they are selling chocolates in single units

Following are the marketing strategies of rural brands of chocolates adopted by different shops in Ahmedabad city

Place No of chocolates Price Packaging Supply Chain

14

Aashapura KentLemoMichi

Rs 25 to 2 Plastic Wrapper Kalupur

Jitubhai Kent PelicanAayushKim Kim

Rs 25 to 5 Wrapper Kalupur

Chamunda stores KentLemoMichiPelicanAayushKim KimAasha

Rs 10 to 30 Tin boxes Packets Jar

Naroda

Satyavijay KentLemoMichiPelicanAayushKim Kim

Rs 10 to 50 Tin boxes Packets Jar

Naroda

Place Major customers Profit Occasion SellingUnits

Schemes

Aashapura Kids amp adults 5-7 - Single units __

Jitubhai Kids 5-8 All occasions Single units __Chamunda stores

JashriDeepak storesSurajNaveenshah

8-11 All occasions except feb-march

Bulk __

Satyavijay Kids amp Adults 7-10 __ Bulk __

Analaysis

These are the different type of rural brand chocolates available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Kent Lemo Michi and Aayush They are selling chocolates between the price range of Rs 10 to Rs 30 All the wholesellers are purchasing Kent chocolates from only one distributor and that is Kent Food Product Naroda Same as they are purchasing

15

Michi chocolates from JRJ Products Ltd Madhupur etc and they are selling these chocolates in bulk to retailers Generally all the shops earning profit between 5-7 And they are selling chocolates in single unit between the price ranges of 25 to 2

16

Annexure 3

OVERALL REVIEW

Talking about chocolate market in a nutshell we came to know that now dayrsquos chocolates of national band are mostly popular within both local and urban people The main reason being that the availability of national brands of chocolates like Cadbury Amul Nestle and Parle are widely available even in slums Itrsquos becoming popular in both rural and urban areas

Generally observed phenomenon is that women prefer more chocolates than men do Youngster and children up to specific age are the target audience They are concentrated and their needs are taken into consideration

For urban area precisely Dairy milk 5 star eclair munch kit Kat celebrations temptations are more famous while in rural areas chocolates like kacha aam cokanaka aayush roomy pelican and roul gun are the most consumed

While we concuted a survey among the kids they preferred those chocolates with attractive wrappers They preferred those of different shapes and sizes and with those of transparent boxes

While we conducted a survey among the kids they prefered with attractive wrappers They preferred with those of different shapes and sizes and with those of transparent boxes

When we went for retail survey we went for retail survey we came to know what their selling strategies were and what were their mostly demanded chocolates We even went to Amul for survey where we identified that consumers of Amul chocolate are in plenty

When we surveyed about chocolate consumed in our college canteen all of them said that Dairymilks were in demand So from all the above information we come to know that Cadbury is most popular brand than other brands of chocolates

17

Annexure 4

FINDINGS

We have to various conclusions from this project We have found that

1 INCOME

Income as a factor affects purchase decision indirectly ie almost all brands of chocolate are at different prices Hence it might not affect consumers purchase decision then However the same brands of chocolate are priced more at Malls So consumers become more sensitive at such places

For a consumer who has an income less than Rs 10000 he will not always be able to afford 20-50 rupees for a chocolate Hence he might spend 5 rupees for a chocolate

2 BRAND PREFRENCE amp BRAND LOYALTY

A large number of consumers have a first preference of Cadbury followed by Nestle Amul and parle Yet if the preferred brand is not available then they would switch to other brands This shows that the level of brand loyalty among consumers is very low Although Cadbury is one of the most reputed brands it does not have brand loyalty

3 AVAILIBILITY

Availability is not a factor that a consumer keeps in mind while purchasing any brand of chocolate However now a days chocolates being necessity in many occasions a consumers will purchase any brand available if his preferred brand is not available This shows that availability affects a consumer to a great extent

Taste

Many consumers purchase a brand of chocolates on the basis of how the chocolate tastes consumers appeal that they find few of the chocolates bitter in taste Hence they tend to avoid purchasing those brands as far as possible Yet on the other hand there are consumers who love the bitter taste of chocolate Hence it is a matter of consumerrsquos percieverence

Size

We have seen that usually chocolates of rs 5 to rs 10 are consumed This is followed by chocolats of rs 203050 and so on However all brands are not available in all size

18

Hence consumer who want to purchase chocolates of rs 5 and 10 of a particular brand and if it is not available than they would switch to another brand in which that size is available

PricePrice is an important factor affecting the purchase decision of consumers However consumers were agreed that they are ready to buy a brand even if its price increase They were not ready to compromise their perceived quality of the brand

Packaging and Labeling

A large number of consumers said that packaging and labeling of a brand of chocolates does not affect the purchase decision While the consumer among the lower age group especially the kids gives priority to packaging and labeling Packaging can help brand volumes but cannot be the driver

Brand awareness

Consumers are well aware of the various brands in the market One of the brands that they were ever to recall the most was CADBURY While surveying we found that CADBURY today has become synonymous to chocolates

Advertisement

Advertisement plays a small role in influencing the purchase decision of consumer Advertisement has managed to make consumer aware of various brands It helps in influencing the purchase decision only when all the brands of chocolates are available Brands like CADBURY NESTLE AMUL spend lot of money on advertisement to increase their sales on the other hand local manufactures without advertisement manage to sell their products in the market

Own experienceA large no of consumers said that they would purchase a brand of chocolates based on their own experience of taste perceived quality and so on

Brand nameIt can be seen that various brand have created a brand image for themselves in the minds of consumers When all the brands are available they purchased chocolates on the basis of brand name

Word of mouthMost consumers felt that word of mouth does not affect their purchased decision

19

No brand differentiation

There is no brand differentiation in the market ie even though people ask for dairy milk they satisfied if they walk away with 5starkit-kat munch amul or any other chocolates of any brand

RECOMMENDATION

1 The national brands of chocolates should also be made easily available and consumable in rural areas too 2 The local chocolates are widely popular in specific localities They could even be supplied in a wider area3 As per public opinion the respondents even wanted to experience varities in taste in a specific brands The companies can look forward to that4 In the lower age group between 10 to 20 the teens even wanted different sizes in shapes in chocolate For eg free of our respondents even desire to have chocolats of heart shapes specially for gifting others5 No schemes are introduced in chocolates on regular basis Schemes should be their for few of the expensive brands6 For bringing inovvation chocolate should even be made of different colurs For eg chocolates of Black White Red pink blue and so on would be widely accepted by the children

20

21

Page 12: Chocolate Industry

Annexure 2

MARKETING STRATEGY

PRODUCTS

Decision regarding appearance size shapes weight brand packing etc are taken

PRICE

Decision regarding prize policy credit policy are taken In Urja fabrics pvt ltd the price is governed by market value based price The customerrsquos queries have to be answered within 24 hours

PLACE

Decision regarding wholesale and retail merchants channels of distribution physical decision etc are taken

PROMOTION

Decision regarding advertisement personal selling publicity and sales promotion are taken

COMPETITORS

When competition is healthy it motivates and encourages the companies to bring about drastic change in its management to stand with the competition They are forced to improve the quality of goods and prove them at low rates

12

Followings are the marketing strategy adopted by different malls of Ahmedabad city

Place No of chocolates

Price Packaging Supply chain Advertisement

Big Bazzar

Cadbury Rs5 to 90

Box bottle wrapper

Head Office(Mumbai)

___

Gallops CadburyNestle

Rs 10 to 300

Wrapper BoxPaper packaging

Local suppliers ___

Amul (retail outlet)

Amul Rs 5 to 150

Box packetswrapper

Dairy TV advertisement

Reliance Fresh

Cadbury Rs 5 to 150

Box bottle wrappers

Head Office(Mumbai)

___

Place Majorcustomers

Profit Occasions Selling Units

Schemes

Big Bazzar All 7-10 Rakhi ampDiwali Single units __Gallops Collegians amp

Children20 Christmas

Diwali RakhiSingle Units __

Amul(retail outlet)

All (majority youngsters)

20 All time hit Single units __

Reliance fresh Cadbury __ Adults Single units __

Analysis

These are the information available from different malls and retail outlets of Ahmadabad From the above information we can clearly says that mostly all the malls are selling chocolates Cadbury brand only and very few are selling nestle brand All of them are chocolates between the ranges of Rs 5 to Rs 300 Mostly they are supplying chocolates from the head office of Bombay only Amul supplying chocolates from dairy The profit margin rate of all of them is between 7 to 20 All of them are selling chocolates in single unit only and none of them are providing any schemes on sale of chocolate

13

Following are the marketing strategies adopted by different types of Shops of Ahmedabad city

Place No of chocolates Price Packaging Supply ChainShrinath parlor Cadbury

NestleAmulParle

5 -5005-10Rs 5Rs 1

__Gokul DasVeer coAshok mrktngPrecise sell

Ambika Dairyfarm

CadburyNestleParle

1 to 1751 to 10050 to 5

Tin Boxes Gokul dasVeer coPrecise sell

Krishna dairy CadburyNestleParle

1-3001-10050-5

Tinboxes Gokul DasVeer coPrecise sell

RB stores CadburyNestleParle

5-302-12050-1

__Gokul DasVeer coPrecise sell

Place Major customers Profit Occasion SellingUnits

Schemes

Shrinath parlor Kids amp adults 7-8 Rakhi amp Diwali Single units __

Ambika dairy farm

Kids 5-8 All occasions Single units Discounts at festivals

Krishna dairy farm

Kids 10-25 All occasions Single units __

RB stores Kids amp Adults 7-10 Rakhi diwalibirthday

Single units __

Analysis

These are the different type of available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Cadbury nestle amul parleThey are selling chocolates between the price range of 050 paisa to Rs 300All the retailers are purchasing Cadbury chocolates from only one distributor and that is Gokul das Same as they are purchasing nestle chocolates from veer co Parle from precise sells and amul from ashok marketing Generally all the shops earning profit between 7-25 And they are selling chocolates in single units

Following are the marketing strategies of rural brands of chocolates adopted by different shops in Ahmedabad city

Place No of chocolates Price Packaging Supply Chain

14

Aashapura KentLemoMichi

Rs 25 to 2 Plastic Wrapper Kalupur

Jitubhai Kent PelicanAayushKim Kim

Rs 25 to 5 Wrapper Kalupur

Chamunda stores KentLemoMichiPelicanAayushKim KimAasha

Rs 10 to 30 Tin boxes Packets Jar

Naroda

Satyavijay KentLemoMichiPelicanAayushKim Kim

Rs 10 to 50 Tin boxes Packets Jar

Naroda

Place Major customers Profit Occasion SellingUnits

Schemes

Aashapura Kids amp adults 5-7 - Single units __

Jitubhai Kids 5-8 All occasions Single units __Chamunda stores

JashriDeepak storesSurajNaveenshah

8-11 All occasions except feb-march

Bulk __

Satyavijay Kids amp Adults 7-10 __ Bulk __

Analaysis

These are the different type of rural brand chocolates available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Kent Lemo Michi and Aayush They are selling chocolates between the price range of Rs 10 to Rs 30 All the wholesellers are purchasing Kent chocolates from only one distributor and that is Kent Food Product Naroda Same as they are purchasing

15

Michi chocolates from JRJ Products Ltd Madhupur etc and they are selling these chocolates in bulk to retailers Generally all the shops earning profit between 5-7 And they are selling chocolates in single unit between the price ranges of 25 to 2

16

Annexure 3

OVERALL REVIEW

Talking about chocolate market in a nutshell we came to know that now dayrsquos chocolates of national band are mostly popular within both local and urban people The main reason being that the availability of national brands of chocolates like Cadbury Amul Nestle and Parle are widely available even in slums Itrsquos becoming popular in both rural and urban areas

Generally observed phenomenon is that women prefer more chocolates than men do Youngster and children up to specific age are the target audience They are concentrated and their needs are taken into consideration

For urban area precisely Dairy milk 5 star eclair munch kit Kat celebrations temptations are more famous while in rural areas chocolates like kacha aam cokanaka aayush roomy pelican and roul gun are the most consumed

While we concuted a survey among the kids they preferred those chocolates with attractive wrappers They preferred those of different shapes and sizes and with those of transparent boxes

While we conducted a survey among the kids they prefered with attractive wrappers They preferred with those of different shapes and sizes and with those of transparent boxes

When we went for retail survey we went for retail survey we came to know what their selling strategies were and what were their mostly demanded chocolates We even went to Amul for survey where we identified that consumers of Amul chocolate are in plenty

When we surveyed about chocolate consumed in our college canteen all of them said that Dairymilks were in demand So from all the above information we come to know that Cadbury is most popular brand than other brands of chocolates

17

Annexure 4

FINDINGS

We have to various conclusions from this project We have found that

1 INCOME

Income as a factor affects purchase decision indirectly ie almost all brands of chocolate are at different prices Hence it might not affect consumers purchase decision then However the same brands of chocolate are priced more at Malls So consumers become more sensitive at such places

For a consumer who has an income less than Rs 10000 he will not always be able to afford 20-50 rupees for a chocolate Hence he might spend 5 rupees for a chocolate

2 BRAND PREFRENCE amp BRAND LOYALTY

A large number of consumers have a first preference of Cadbury followed by Nestle Amul and parle Yet if the preferred brand is not available then they would switch to other brands This shows that the level of brand loyalty among consumers is very low Although Cadbury is one of the most reputed brands it does not have brand loyalty

3 AVAILIBILITY

Availability is not a factor that a consumer keeps in mind while purchasing any brand of chocolate However now a days chocolates being necessity in many occasions a consumers will purchase any brand available if his preferred brand is not available This shows that availability affects a consumer to a great extent

Taste

Many consumers purchase a brand of chocolates on the basis of how the chocolate tastes consumers appeal that they find few of the chocolates bitter in taste Hence they tend to avoid purchasing those brands as far as possible Yet on the other hand there are consumers who love the bitter taste of chocolate Hence it is a matter of consumerrsquos percieverence

Size

We have seen that usually chocolates of rs 5 to rs 10 are consumed This is followed by chocolats of rs 203050 and so on However all brands are not available in all size

18

Hence consumer who want to purchase chocolates of rs 5 and 10 of a particular brand and if it is not available than they would switch to another brand in which that size is available

PricePrice is an important factor affecting the purchase decision of consumers However consumers were agreed that they are ready to buy a brand even if its price increase They were not ready to compromise their perceived quality of the brand

Packaging and Labeling

A large number of consumers said that packaging and labeling of a brand of chocolates does not affect the purchase decision While the consumer among the lower age group especially the kids gives priority to packaging and labeling Packaging can help brand volumes but cannot be the driver

Brand awareness

Consumers are well aware of the various brands in the market One of the brands that they were ever to recall the most was CADBURY While surveying we found that CADBURY today has become synonymous to chocolates

Advertisement

Advertisement plays a small role in influencing the purchase decision of consumer Advertisement has managed to make consumer aware of various brands It helps in influencing the purchase decision only when all the brands of chocolates are available Brands like CADBURY NESTLE AMUL spend lot of money on advertisement to increase their sales on the other hand local manufactures without advertisement manage to sell their products in the market

Own experienceA large no of consumers said that they would purchase a brand of chocolates based on their own experience of taste perceived quality and so on

Brand nameIt can be seen that various brand have created a brand image for themselves in the minds of consumers When all the brands are available they purchased chocolates on the basis of brand name

Word of mouthMost consumers felt that word of mouth does not affect their purchased decision

19

No brand differentiation

There is no brand differentiation in the market ie even though people ask for dairy milk they satisfied if they walk away with 5starkit-kat munch amul or any other chocolates of any brand

RECOMMENDATION

1 The national brands of chocolates should also be made easily available and consumable in rural areas too 2 The local chocolates are widely popular in specific localities They could even be supplied in a wider area3 As per public opinion the respondents even wanted to experience varities in taste in a specific brands The companies can look forward to that4 In the lower age group between 10 to 20 the teens even wanted different sizes in shapes in chocolate For eg free of our respondents even desire to have chocolats of heart shapes specially for gifting others5 No schemes are introduced in chocolates on regular basis Schemes should be their for few of the expensive brands6 For bringing inovvation chocolate should even be made of different colurs For eg chocolates of Black White Red pink blue and so on would be widely accepted by the children

20

21

Page 13: Chocolate Industry

Followings are the marketing strategy adopted by different malls of Ahmedabad city

Place No of chocolates

Price Packaging Supply chain Advertisement

Big Bazzar

Cadbury Rs5 to 90

Box bottle wrapper

Head Office(Mumbai)

___

Gallops CadburyNestle

Rs 10 to 300

Wrapper BoxPaper packaging

Local suppliers ___

Amul (retail outlet)

Amul Rs 5 to 150

Box packetswrapper

Dairy TV advertisement

Reliance Fresh

Cadbury Rs 5 to 150

Box bottle wrappers

Head Office(Mumbai)

___

Place Majorcustomers

Profit Occasions Selling Units

Schemes

Big Bazzar All 7-10 Rakhi ampDiwali Single units __Gallops Collegians amp

Children20 Christmas

Diwali RakhiSingle Units __

Amul(retail outlet)

All (majority youngsters)

20 All time hit Single units __

Reliance fresh Cadbury __ Adults Single units __

Analysis

These are the information available from different malls and retail outlets of Ahmadabad From the above information we can clearly says that mostly all the malls are selling chocolates Cadbury brand only and very few are selling nestle brand All of them are chocolates between the ranges of Rs 5 to Rs 300 Mostly they are supplying chocolates from the head office of Bombay only Amul supplying chocolates from dairy The profit margin rate of all of them is between 7 to 20 All of them are selling chocolates in single unit only and none of them are providing any schemes on sale of chocolate

13

Following are the marketing strategies adopted by different types of Shops of Ahmedabad city

Place No of chocolates Price Packaging Supply ChainShrinath parlor Cadbury

NestleAmulParle

5 -5005-10Rs 5Rs 1

__Gokul DasVeer coAshok mrktngPrecise sell

Ambika Dairyfarm

CadburyNestleParle

1 to 1751 to 10050 to 5

Tin Boxes Gokul dasVeer coPrecise sell

Krishna dairy CadburyNestleParle

1-3001-10050-5

Tinboxes Gokul DasVeer coPrecise sell

RB stores CadburyNestleParle

5-302-12050-1

__Gokul DasVeer coPrecise sell

Place Major customers Profit Occasion SellingUnits

Schemes

Shrinath parlor Kids amp adults 7-8 Rakhi amp Diwali Single units __

Ambika dairy farm

Kids 5-8 All occasions Single units Discounts at festivals

Krishna dairy farm

Kids 10-25 All occasions Single units __

RB stores Kids amp Adults 7-10 Rakhi diwalibirthday

Single units __

Analysis

These are the different type of available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Cadbury nestle amul parleThey are selling chocolates between the price range of 050 paisa to Rs 300All the retailers are purchasing Cadbury chocolates from only one distributor and that is Gokul das Same as they are purchasing nestle chocolates from veer co Parle from precise sells and amul from ashok marketing Generally all the shops earning profit between 7-25 And they are selling chocolates in single units

Following are the marketing strategies of rural brands of chocolates adopted by different shops in Ahmedabad city

Place No of chocolates Price Packaging Supply Chain

14

Aashapura KentLemoMichi

Rs 25 to 2 Plastic Wrapper Kalupur

Jitubhai Kent PelicanAayushKim Kim

Rs 25 to 5 Wrapper Kalupur

Chamunda stores KentLemoMichiPelicanAayushKim KimAasha

Rs 10 to 30 Tin boxes Packets Jar

Naroda

Satyavijay KentLemoMichiPelicanAayushKim Kim

Rs 10 to 50 Tin boxes Packets Jar

Naroda

Place Major customers Profit Occasion SellingUnits

Schemes

Aashapura Kids amp adults 5-7 - Single units __

Jitubhai Kids 5-8 All occasions Single units __Chamunda stores

JashriDeepak storesSurajNaveenshah

8-11 All occasions except feb-march

Bulk __

Satyavijay Kids amp Adults 7-10 __ Bulk __

Analaysis

These are the different type of rural brand chocolates available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Kent Lemo Michi and Aayush They are selling chocolates between the price range of Rs 10 to Rs 30 All the wholesellers are purchasing Kent chocolates from only one distributor and that is Kent Food Product Naroda Same as they are purchasing

15

Michi chocolates from JRJ Products Ltd Madhupur etc and they are selling these chocolates in bulk to retailers Generally all the shops earning profit between 5-7 And they are selling chocolates in single unit between the price ranges of 25 to 2

16

Annexure 3

OVERALL REVIEW

Talking about chocolate market in a nutshell we came to know that now dayrsquos chocolates of national band are mostly popular within both local and urban people The main reason being that the availability of national brands of chocolates like Cadbury Amul Nestle and Parle are widely available even in slums Itrsquos becoming popular in both rural and urban areas

Generally observed phenomenon is that women prefer more chocolates than men do Youngster and children up to specific age are the target audience They are concentrated and their needs are taken into consideration

For urban area precisely Dairy milk 5 star eclair munch kit Kat celebrations temptations are more famous while in rural areas chocolates like kacha aam cokanaka aayush roomy pelican and roul gun are the most consumed

While we concuted a survey among the kids they preferred those chocolates with attractive wrappers They preferred those of different shapes and sizes and with those of transparent boxes

While we conducted a survey among the kids they prefered with attractive wrappers They preferred with those of different shapes and sizes and with those of transparent boxes

When we went for retail survey we went for retail survey we came to know what their selling strategies were and what were their mostly demanded chocolates We even went to Amul for survey where we identified that consumers of Amul chocolate are in plenty

When we surveyed about chocolate consumed in our college canteen all of them said that Dairymilks were in demand So from all the above information we come to know that Cadbury is most popular brand than other brands of chocolates

17

Annexure 4

FINDINGS

We have to various conclusions from this project We have found that

1 INCOME

Income as a factor affects purchase decision indirectly ie almost all brands of chocolate are at different prices Hence it might not affect consumers purchase decision then However the same brands of chocolate are priced more at Malls So consumers become more sensitive at such places

For a consumer who has an income less than Rs 10000 he will not always be able to afford 20-50 rupees for a chocolate Hence he might spend 5 rupees for a chocolate

2 BRAND PREFRENCE amp BRAND LOYALTY

A large number of consumers have a first preference of Cadbury followed by Nestle Amul and parle Yet if the preferred brand is not available then they would switch to other brands This shows that the level of brand loyalty among consumers is very low Although Cadbury is one of the most reputed brands it does not have brand loyalty

3 AVAILIBILITY

Availability is not a factor that a consumer keeps in mind while purchasing any brand of chocolate However now a days chocolates being necessity in many occasions a consumers will purchase any brand available if his preferred brand is not available This shows that availability affects a consumer to a great extent

Taste

Many consumers purchase a brand of chocolates on the basis of how the chocolate tastes consumers appeal that they find few of the chocolates bitter in taste Hence they tend to avoid purchasing those brands as far as possible Yet on the other hand there are consumers who love the bitter taste of chocolate Hence it is a matter of consumerrsquos percieverence

Size

We have seen that usually chocolates of rs 5 to rs 10 are consumed This is followed by chocolats of rs 203050 and so on However all brands are not available in all size

18

Hence consumer who want to purchase chocolates of rs 5 and 10 of a particular brand and if it is not available than they would switch to another brand in which that size is available

PricePrice is an important factor affecting the purchase decision of consumers However consumers were agreed that they are ready to buy a brand even if its price increase They were not ready to compromise their perceived quality of the brand

Packaging and Labeling

A large number of consumers said that packaging and labeling of a brand of chocolates does not affect the purchase decision While the consumer among the lower age group especially the kids gives priority to packaging and labeling Packaging can help brand volumes but cannot be the driver

Brand awareness

Consumers are well aware of the various brands in the market One of the brands that they were ever to recall the most was CADBURY While surveying we found that CADBURY today has become synonymous to chocolates

Advertisement

Advertisement plays a small role in influencing the purchase decision of consumer Advertisement has managed to make consumer aware of various brands It helps in influencing the purchase decision only when all the brands of chocolates are available Brands like CADBURY NESTLE AMUL spend lot of money on advertisement to increase their sales on the other hand local manufactures without advertisement manage to sell their products in the market

Own experienceA large no of consumers said that they would purchase a brand of chocolates based on their own experience of taste perceived quality and so on

Brand nameIt can be seen that various brand have created a brand image for themselves in the minds of consumers When all the brands are available they purchased chocolates on the basis of brand name

Word of mouthMost consumers felt that word of mouth does not affect their purchased decision

19

No brand differentiation

There is no brand differentiation in the market ie even though people ask for dairy milk they satisfied if they walk away with 5starkit-kat munch amul or any other chocolates of any brand

RECOMMENDATION

1 The national brands of chocolates should also be made easily available and consumable in rural areas too 2 The local chocolates are widely popular in specific localities They could even be supplied in a wider area3 As per public opinion the respondents even wanted to experience varities in taste in a specific brands The companies can look forward to that4 In the lower age group between 10 to 20 the teens even wanted different sizes in shapes in chocolate For eg free of our respondents even desire to have chocolats of heart shapes specially for gifting others5 No schemes are introduced in chocolates on regular basis Schemes should be their for few of the expensive brands6 For bringing inovvation chocolate should even be made of different colurs For eg chocolates of Black White Red pink blue and so on would be widely accepted by the children

20

21

Page 14: Chocolate Industry

Following are the marketing strategies adopted by different types of Shops of Ahmedabad city

Place No of chocolates Price Packaging Supply ChainShrinath parlor Cadbury

NestleAmulParle

5 -5005-10Rs 5Rs 1

__Gokul DasVeer coAshok mrktngPrecise sell

Ambika Dairyfarm

CadburyNestleParle

1 to 1751 to 10050 to 5

Tin Boxes Gokul dasVeer coPrecise sell

Krishna dairy CadburyNestleParle

1-3001-10050-5

Tinboxes Gokul DasVeer coPrecise sell

RB stores CadburyNestleParle

5-302-12050-1

__Gokul DasVeer coPrecise sell

Place Major customers Profit Occasion SellingUnits

Schemes

Shrinath parlor Kids amp adults 7-8 Rakhi amp Diwali Single units __

Ambika dairy farm

Kids 5-8 All occasions Single units Discounts at festivals

Krishna dairy farm

Kids 10-25 All occasions Single units __

RB stores Kids amp Adults 7-10 Rakhi diwalibirthday

Single units __

Analysis

These are the different type of available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Cadbury nestle amul parleThey are selling chocolates between the price range of 050 paisa to Rs 300All the retailers are purchasing Cadbury chocolates from only one distributor and that is Gokul das Same as they are purchasing nestle chocolates from veer co Parle from precise sells and amul from ashok marketing Generally all the shops earning profit between 7-25 And they are selling chocolates in single units

Following are the marketing strategies of rural brands of chocolates adopted by different shops in Ahmedabad city

Place No of chocolates Price Packaging Supply Chain

14

Aashapura KentLemoMichi

Rs 25 to 2 Plastic Wrapper Kalupur

Jitubhai Kent PelicanAayushKim Kim

Rs 25 to 5 Wrapper Kalupur

Chamunda stores KentLemoMichiPelicanAayushKim KimAasha

Rs 10 to 30 Tin boxes Packets Jar

Naroda

Satyavijay KentLemoMichiPelicanAayushKim Kim

Rs 10 to 50 Tin boxes Packets Jar

Naroda

Place Major customers Profit Occasion SellingUnits

Schemes

Aashapura Kids amp adults 5-7 - Single units __

Jitubhai Kids 5-8 All occasions Single units __Chamunda stores

JashriDeepak storesSurajNaveenshah

8-11 All occasions except feb-march

Bulk __

Satyavijay Kids amp Adults 7-10 __ Bulk __

Analaysis

These are the different type of rural brand chocolates available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Kent Lemo Michi and Aayush They are selling chocolates between the price range of Rs 10 to Rs 30 All the wholesellers are purchasing Kent chocolates from only one distributor and that is Kent Food Product Naroda Same as they are purchasing

15

Michi chocolates from JRJ Products Ltd Madhupur etc and they are selling these chocolates in bulk to retailers Generally all the shops earning profit between 5-7 And they are selling chocolates in single unit between the price ranges of 25 to 2

16

Annexure 3

OVERALL REVIEW

Talking about chocolate market in a nutshell we came to know that now dayrsquos chocolates of national band are mostly popular within both local and urban people The main reason being that the availability of national brands of chocolates like Cadbury Amul Nestle and Parle are widely available even in slums Itrsquos becoming popular in both rural and urban areas

Generally observed phenomenon is that women prefer more chocolates than men do Youngster and children up to specific age are the target audience They are concentrated and their needs are taken into consideration

For urban area precisely Dairy milk 5 star eclair munch kit Kat celebrations temptations are more famous while in rural areas chocolates like kacha aam cokanaka aayush roomy pelican and roul gun are the most consumed

While we concuted a survey among the kids they preferred those chocolates with attractive wrappers They preferred those of different shapes and sizes and with those of transparent boxes

While we conducted a survey among the kids they prefered with attractive wrappers They preferred with those of different shapes and sizes and with those of transparent boxes

When we went for retail survey we went for retail survey we came to know what their selling strategies were and what were their mostly demanded chocolates We even went to Amul for survey where we identified that consumers of Amul chocolate are in plenty

When we surveyed about chocolate consumed in our college canteen all of them said that Dairymilks were in demand So from all the above information we come to know that Cadbury is most popular brand than other brands of chocolates

17

Annexure 4

FINDINGS

We have to various conclusions from this project We have found that

1 INCOME

Income as a factor affects purchase decision indirectly ie almost all brands of chocolate are at different prices Hence it might not affect consumers purchase decision then However the same brands of chocolate are priced more at Malls So consumers become more sensitive at such places

For a consumer who has an income less than Rs 10000 he will not always be able to afford 20-50 rupees for a chocolate Hence he might spend 5 rupees for a chocolate

2 BRAND PREFRENCE amp BRAND LOYALTY

A large number of consumers have a first preference of Cadbury followed by Nestle Amul and parle Yet if the preferred brand is not available then they would switch to other brands This shows that the level of brand loyalty among consumers is very low Although Cadbury is one of the most reputed brands it does not have brand loyalty

3 AVAILIBILITY

Availability is not a factor that a consumer keeps in mind while purchasing any brand of chocolate However now a days chocolates being necessity in many occasions a consumers will purchase any brand available if his preferred brand is not available This shows that availability affects a consumer to a great extent

Taste

Many consumers purchase a brand of chocolates on the basis of how the chocolate tastes consumers appeal that they find few of the chocolates bitter in taste Hence they tend to avoid purchasing those brands as far as possible Yet on the other hand there are consumers who love the bitter taste of chocolate Hence it is a matter of consumerrsquos percieverence

Size

We have seen that usually chocolates of rs 5 to rs 10 are consumed This is followed by chocolats of rs 203050 and so on However all brands are not available in all size

18

Hence consumer who want to purchase chocolates of rs 5 and 10 of a particular brand and if it is not available than they would switch to another brand in which that size is available

PricePrice is an important factor affecting the purchase decision of consumers However consumers were agreed that they are ready to buy a brand even if its price increase They were not ready to compromise their perceived quality of the brand

Packaging and Labeling

A large number of consumers said that packaging and labeling of a brand of chocolates does not affect the purchase decision While the consumer among the lower age group especially the kids gives priority to packaging and labeling Packaging can help brand volumes but cannot be the driver

Brand awareness

Consumers are well aware of the various brands in the market One of the brands that they were ever to recall the most was CADBURY While surveying we found that CADBURY today has become synonymous to chocolates

Advertisement

Advertisement plays a small role in influencing the purchase decision of consumer Advertisement has managed to make consumer aware of various brands It helps in influencing the purchase decision only when all the brands of chocolates are available Brands like CADBURY NESTLE AMUL spend lot of money on advertisement to increase their sales on the other hand local manufactures without advertisement manage to sell their products in the market

Own experienceA large no of consumers said that they would purchase a brand of chocolates based on their own experience of taste perceived quality and so on

Brand nameIt can be seen that various brand have created a brand image for themselves in the minds of consumers When all the brands are available they purchased chocolates on the basis of brand name

Word of mouthMost consumers felt that word of mouth does not affect their purchased decision

19

No brand differentiation

There is no brand differentiation in the market ie even though people ask for dairy milk they satisfied if they walk away with 5starkit-kat munch amul or any other chocolates of any brand

RECOMMENDATION

1 The national brands of chocolates should also be made easily available and consumable in rural areas too 2 The local chocolates are widely popular in specific localities They could even be supplied in a wider area3 As per public opinion the respondents even wanted to experience varities in taste in a specific brands The companies can look forward to that4 In the lower age group between 10 to 20 the teens even wanted different sizes in shapes in chocolate For eg free of our respondents even desire to have chocolats of heart shapes specially for gifting others5 No schemes are introduced in chocolates on regular basis Schemes should be their for few of the expensive brands6 For bringing inovvation chocolate should even be made of different colurs For eg chocolates of Black White Red pink blue and so on would be widely accepted by the children

20

21

Page 15: Chocolate Industry

Aashapura KentLemoMichi

Rs 25 to 2 Plastic Wrapper Kalupur

Jitubhai Kent PelicanAayushKim Kim

Rs 25 to 5 Wrapper Kalupur

Chamunda stores KentLemoMichiPelicanAayushKim KimAasha

Rs 10 to 30 Tin boxes Packets Jar

Naroda

Satyavijay KentLemoMichiPelicanAayushKim Kim

Rs 10 to 50 Tin boxes Packets Jar

Naroda

Place Major customers Profit Occasion SellingUnits

Schemes

Aashapura Kids amp adults 5-7 - Single units __

Jitubhai Kids 5-8 All occasions Single units __Chamunda stores

JashriDeepak storesSurajNaveenshah

8-11 All occasions except feb-march

Bulk __

Satyavijay Kids amp Adults 7-10 __ Bulk __

Analaysis

These are the different type of rural brand chocolates available from the different shops of Ahmedabad city From the above information we can say that all the shops are selling mostly all the brands of chocolate which are Kent Lemo Michi and Aayush They are selling chocolates between the price range of Rs 10 to Rs 30 All the wholesellers are purchasing Kent chocolates from only one distributor and that is Kent Food Product Naroda Same as they are purchasing

15

Michi chocolates from JRJ Products Ltd Madhupur etc and they are selling these chocolates in bulk to retailers Generally all the shops earning profit between 5-7 And they are selling chocolates in single unit between the price ranges of 25 to 2

16

Annexure 3

OVERALL REVIEW

Talking about chocolate market in a nutshell we came to know that now dayrsquos chocolates of national band are mostly popular within both local and urban people The main reason being that the availability of national brands of chocolates like Cadbury Amul Nestle and Parle are widely available even in slums Itrsquos becoming popular in both rural and urban areas

Generally observed phenomenon is that women prefer more chocolates than men do Youngster and children up to specific age are the target audience They are concentrated and their needs are taken into consideration

For urban area precisely Dairy milk 5 star eclair munch kit Kat celebrations temptations are more famous while in rural areas chocolates like kacha aam cokanaka aayush roomy pelican and roul gun are the most consumed

While we concuted a survey among the kids they preferred those chocolates with attractive wrappers They preferred those of different shapes and sizes and with those of transparent boxes

While we conducted a survey among the kids they prefered with attractive wrappers They preferred with those of different shapes and sizes and with those of transparent boxes

When we went for retail survey we went for retail survey we came to know what their selling strategies were and what were their mostly demanded chocolates We even went to Amul for survey where we identified that consumers of Amul chocolate are in plenty

When we surveyed about chocolate consumed in our college canteen all of them said that Dairymilks were in demand So from all the above information we come to know that Cadbury is most popular brand than other brands of chocolates

17

Annexure 4

FINDINGS

We have to various conclusions from this project We have found that

1 INCOME

Income as a factor affects purchase decision indirectly ie almost all brands of chocolate are at different prices Hence it might not affect consumers purchase decision then However the same brands of chocolate are priced more at Malls So consumers become more sensitive at such places

For a consumer who has an income less than Rs 10000 he will not always be able to afford 20-50 rupees for a chocolate Hence he might spend 5 rupees for a chocolate

2 BRAND PREFRENCE amp BRAND LOYALTY

A large number of consumers have a first preference of Cadbury followed by Nestle Amul and parle Yet if the preferred brand is not available then they would switch to other brands This shows that the level of brand loyalty among consumers is very low Although Cadbury is one of the most reputed brands it does not have brand loyalty

3 AVAILIBILITY

Availability is not a factor that a consumer keeps in mind while purchasing any brand of chocolate However now a days chocolates being necessity in many occasions a consumers will purchase any brand available if his preferred brand is not available This shows that availability affects a consumer to a great extent

Taste

Many consumers purchase a brand of chocolates on the basis of how the chocolate tastes consumers appeal that they find few of the chocolates bitter in taste Hence they tend to avoid purchasing those brands as far as possible Yet on the other hand there are consumers who love the bitter taste of chocolate Hence it is a matter of consumerrsquos percieverence

Size

We have seen that usually chocolates of rs 5 to rs 10 are consumed This is followed by chocolats of rs 203050 and so on However all brands are not available in all size

18

Hence consumer who want to purchase chocolates of rs 5 and 10 of a particular brand and if it is not available than they would switch to another brand in which that size is available

PricePrice is an important factor affecting the purchase decision of consumers However consumers were agreed that they are ready to buy a brand even if its price increase They were not ready to compromise their perceived quality of the brand

Packaging and Labeling

A large number of consumers said that packaging and labeling of a brand of chocolates does not affect the purchase decision While the consumer among the lower age group especially the kids gives priority to packaging and labeling Packaging can help brand volumes but cannot be the driver

Brand awareness

Consumers are well aware of the various brands in the market One of the brands that they were ever to recall the most was CADBURY While surveying we found that CADBURY today has become synonymous to chocolates

Advertisement

Advertisement plays a small role in influencing the purchase decision of consumer Advertisement has managed to make consumer aware of various brands It helps in influencing the purchase decision only when all the brands of chocolates are available Brands like CADBURY NESTLE AMUL spend lot of money on advertisement to increase their sales on the other hand local manufactures without advertisement manage to sell their products in the market

Own experienceA large no of consumers said that they would purchase a brand of chocolates based on their own experience of taste perceived quality and so on

Brand nameIt can be seen that various brand have created a brand image for themselves in the minds of consumers When all the brands are available they purchased chocolates on the basis of brand name

Word of mouthMost consumers felt that word of mouth does not affect their purchased decision

19

No brand differentiation

There is no brand differentiation in the market ie even though people ask for dairy milk they satisfied if they walk away with 5starkit-kat munch amul or any other chocolates of any brand

RECOMMENDATION

1 The national brands of chocolates should also be made easily available and consumable in rural areas too 2 The local chocolates are widely popular in specific localities They could even be supplied in a wider area3 As per public opinion the respondents even wanted to experience varities in taste in a specific brands The companies can look forward to that4 In the lower age group between 10 to 20 the teens even wanted different sizes in shapes in chocolate For eg free of our respondents even desire to have chocolats of heart shapes specially for gifting others5 No schemes are introduced in chocolates on regular basis Schemes should be their for few of the expensive brands6 For bringing inovvation chocolate should even be made of different colurs For eg chocolates of Black White Red pink blue and so on would be widely accepted by the children

20

21

Page 16: Chocolate Industry

Michi chocolates from JRJ Products Ltd Madhupur etc and they are selling these chocolates in bulk to retailers Generally all the shops earning profit between 5-7 And they are selling chocolates in single unit between the price ranges of 25 to 2

16

Annexure 3

OVERALL REVIEW

Talking about chocolate market in a nutshell we came to know that now dayrsquos chocolates of national band are mostly popular within both local and urban people The main reason being that the availability of national brands of chocolates like Cadbury Amul Nestle and Parle are widely available even in slums Itrsquos becoming popular in both rural and urban areas

Generally observed phenomenon is that women prefer more chocolates than men do Youngster and children up to specific age are the target audience They are concentrated and their needs are taken into consideration

For urban area precisely Dairy milk 5 star eclair munch kit Kat celebrations temptations are more famous while in rural areas chocolates like kacha aam cokanaka aayush roomy pelican and roul gun are the most consumed

While we concuted a survey among the kids they preferred those chocolates with attractive wrappers They preferred those of different shapes and sizes and with those of transparent boxes

While we conducted a survey among the kids they prefered with attractive wrappers They preferred with those of different shapes and sizes and with those of transparent boxes

When we went for retail survey we went for retail survey we came to know what their selling strategies were and what were their mostly demanded chocolates We even went to Amul for survey where we identified that consumers of Amul chocolate are in plenty

When we surveyed about chocolate consumed in our college canteen all of them said that Dairymilks were in demand So from all the above information we come to know that Cadbury is most popular brand than other brands of chocolates

17

Annexure 4

FINDINGS

We have to various conclusions from this project We have found that

1 INCOME

Income as a factor affects purchase decision indirectly ie almost all brands of chocolate are at different prices Hence it might not affect consumers purchase decision then However the same brands of chocolate are priced more at Malls So consumers become more sensitive at such places

For a consumer who has an income less than Rs 10000 he will not always be able to afford 20-50 rupees for a chocolate Hence he might spend 5 rupees for a chocolate

2 BRAND PREFRENCE amp BRAND LOYALTY

A large number of consumers have a first preference of Cadbury followed by Nestle Amul and parle Yet if the preferred brand is not available then they would switch to other brands This shows that the level of brand loyalty among consumers is very low Although Cadbury is one of the most reputed brands it does not have brand loyalty

3 AVAILIBILITY

Availability is not a factor that a consumer keeps in mind while purchasing any brand of chocolate However now a days chocolates being necessity in many occasions a consumers will purchase any brand available if his preferred brand is not available This shows that availability affects a consumer to a great extent

Taste

Many consumers purchase a brand of chocolates on the basis of how the chocolate tastes consumers appeal that they find few of the chocolates bitter in taste Hence they tend to avoid purchasing those brands as far as possible Yet on the other hand there are consumers who love the bitter taste of chocolate Hence it is a matter of consumerrsquos percieverence

Size

We have seen that usually chocolates of rs 5 to rs 10 are consumed This is followed by chocolats of rs 203050 and so on However all brands are not available in all size

18

Hence consumer who want to purchase chocolates of rs 5 and 10 of a particular brand and if it is not available than they would switch to another brand in which that size is available

PricePrice is an important factor affecting the purchase decision of consumers However consumers were agreed that they are ready to buy a brand even if its price increase They were not ready to compromise their perceived quality of the brand

Packaging and Labeling

A large number of consumers said that packaging and labeling of a brand of chocolates does not affect the purchase decision While the consumer among the lower age group especially the kids gives priority to packaging and labeling Packaging can help brand volumes but cannot be the driver

Brand awareness

Consumers are well aware of the various brands in the market One of the brands that they were ever to recall the most was CADBURY While surveying we found that CADBURY today has become synonymous to chocolates

Advertisement

Advertisement plays a small role in influencing the purchase decision of consumer Advertisement has managed to make consumer aware of various brands It helps in influencing the purchase decision only when all the brands of chocolates are available Brands like CADBURY NESTLE AMUL spend lot of money on advertisement to increase their sales on the other hand local manufactures without advertisement manage to sell their products in the market

Own experienceA large no of consumers said that they would purchase a brand of chocolates based on their own experience of taste perceived quality and so on

Brand nameIt can be seen that various brand have created a brand image for themselves in the minds of consumers When all the brands are available they purchased chocolates on the basis of brand name

Word of mouthMost consumers felt that word of mouth does not affect their purchased decision

19

No brand differentiation

There is no brand differentiation in the market ie even though people ask for dairy milk they satisfied if they walk away with 5starkit-kat munch amul or any other chocolates of any brand

RECOMMENDATION

1 The national brands of chocolates should also be made easily available and consumable in rural areas too 2 The local chocolates are widely popular in specific localities They could even be supplied in a wider area3 As per public opinion the respondents even wanted to experience varities in taste in a specific brands The companies can look forward to that4 In the lower age group between 10 to 20 the teens even wanted different sizes in shapes in chocolate For eg free of our respondents even desire to have chocolats of heart shapes specially for gifting others5 No schemes are introduced in chocolates on regular basis Schemes should be their for few of the expensive brands6 For bringing inovvation chocolate should even be made of different colurs For eg chocolates of Black White Red pink blue and so on would be widely accepted by the children

20

21

Page 17: Chocolate Industry

Annexure 3

OVERALL REVIEW

Talking about chocolate market in a nutshell we came to know that now dayrsquos chocolates of national band are mostly popular within both local and urban people The main reason being that the availability of national brands of chocolates like Cadbury Amul Nestle and Parle are widely available even in slums Itrsquos becoming popular in both rural and urban areas

Generally observed phenomenon is that women prefer more chocolates than men do Youngster and children up to specific age are the target audience They are concentrated and their needs are taken into consideration

For urban area precisely Dairy milk 5 star eclair munch kit Kat celebrations temptations are more famous while in rural areas chocolates like kacha aam cokanaka aayush roomy pelican and roul gun are the most consumed

While we concuted a survey among the kids they preferred those chocolates with attractive wrappers They preferred those of different shapes and sizes and with those of transparent boxes

While we conducted a survey among the kids they prefered with attractive wrappers They preferred with those of different shapes and sizes and with those of transparent boxes

When we went for retail survey we went for retail survey we came to know what their selling strategies were and what were their mostly demanded chocolates We even went to Amul for survey where we identified that consumers of Amul chocolate are in plenty

When we surveyed about chocolate consumed in our college canteen all of them said that Dairymilks were in demand So from all the above information we come to know that Cadbury is most popular brand than other brands of chocolates

17

Annexure 4

FINDINGS

We have to various conclusions from this project We have found that

1 INCOME

Income as a factor affects purchase decision indirectly ie almost all brands of chocolate are at different prices Hence it might not affect consumers purchase decision then However the same brands of chocolate are priced more at Malls So consumers become more sensitive at such places

For a consumer who has an income less than Rs 10000 he will not always be able to afford 20-50 rupees for a chocolate Hence he might spend 5 rupees for a chocolate

2 BRAND PREFRENCE amp BRAND LOYALTY

A large number of consumers have a first preference of Cadbury followed by Nestle Amul and parle Yet if the preferred brand is not available then they would switch to other brands This shows that the level of brand loyalty among consumers is very low Although Cadbury is one of the most reputed brands it does not have brand loyalty

3 AVAILIBILITY

Availability is not a factor that a consumer keeps in mind while purchasing any brand of chocolate However now a days chocolates being necessity in many occasions a consumers will purchase any brand available if his preferred brand is not available This shows that availability affects a consumer to a great extent

Taste

Many consumers purchase a brand of chocolates on the basis of how the chocolate tastes consumers appeal that they find few of the chocolates bitter in taste Hence they tend to avoid purchasing those brands as far as possible Yet on the other hand there are consumers who love the bitter taste of chocolate Hence it is a matter of consumerrsquos percieverence

Size

We have seen that usually chocolates of rs 5 to rs 10 are consumed This is followed by chocolats of rs 203050 and so on However all brands are not available in all size

18

Hence consumer who want to purchase chocolates of rs 5 and 10 of a particular brand and if it is not available than they would switch to another brand in which that size is available

PricePrice is an important factor affecting the purchase decision of consumers However consumers were agreed that they are ready to buy a brand even if its price increase They were not ready to compromise their perceived quality of the brand

Packaging and Labeling

A large number of consumers said that packaging and labeling of a brand of chocolates does not affect the purchase decision While the consumer among the lower age group especially the kids gives priority to packaging and labeling Packaging can help brand volumes but cannot be the driver

Brand awareness

Consumers are well aware of the various brands in the market One of the brands that they were ever to recall the most was CADBURY While surveying we found that CADBURY today has become synonymous to chocolates

Advertisement

Advertisement plays a small role in influencing the purchase decision of consumer Advertisement has managed to make consumer aware of various brands It helps in influencing the purchase decision only when all the brands of chocolates are available Brands like CADBURY NESTLE AMUL spend lot of money on advertisement to increase their sales on the other hand local manufactures without advertisement manage to sell their products in the market

Own experienceA large no of consumers said that they would purchase a brand of chocolates based on their own experience of taste perceived quality and so on

Brand nameIt can be seen that various brand have created a brand image for themselves in the minds of consumers When all the brands are available they purchased chocolates on the basis of brand name

Word of mouthMost consumers felt that word of mouth does not affect their purchased decision

19

No brand differentiation

There is no brand differentiation in the market ie even though people ask for dairy milk they satisfied if they walk away with 5starkit-kat munch amul or any other chocolates of any brand

RECOMMENDATION

1 The national brands of chocolates should also be made easily available and consumable in rural areas too 2 The local chocolates are widely popular in specific localities They could even be supplied in a wider area3 As per public opinion the respondents even wanted to experience varities in taste in a specific brands The companies can look forward to that4 In the lower age group between 10 to 20 the teens even wanted different sizes in shapes in chocolate For eg free of our respondents even desire to have chocolats of heart shapes specially for gifting others5 No schemes are introduced in chocolates on regular basis Schemes should be their for few of the expensive brands6 For bringing inovvation chocolate should even be made of different colurs For eg chocolates of Black White Red pink blue and so on would be widely accepted by the children

20

21

Page 18: Chocolate Industry

Annexure 4

FINDINGS

We have to various conclusions from this project We have found that

1 INCOME

Income as a factor affects purchase decision indirectly ie almost all brands of chocolate are at different prices Hence it might not affect consumers purchase decision then However the same brands of chocolate are priced more at Malls So consumers become more sensitive at such places

For a consumer who has an income less than Rs 10000 he will not always be able to afford 20-50 rupees for a chocolate Hence he might spend 5 rupees for a chocolate

2 BRAND PREFRENCE amp BRAND LOYALTY

A large number of consumers have a first preference of Cadbury followed by Nestle Amul and parle Yet if the preferred brand is not available then they would switch to other brands This shows that the level of brand loyalty among consumers is very low Although Cadbury is one of the most reputed brands it does not have brand loyalty

3 AVAILIBILITY

Availability is not a factor that a consumer keeps in mind while purchasing any brand of chocolate However now a days chocolates being necessity in many occasions a consumers will purchase any brand available if his preferred brand is not available This shows that availability affects a consumer to a great extent

Taste

Many consumers purchase a brand of chocolates on the basis of how the chocolate tastes consumers appeal that they find few of the chocolates bitter in taste Hence they tend to avoid purchasing those brands as far as possible Yet on the other hand there are consumers who love the bitter taste of chocolate Hence it is a matter of consumerrsquos percieverence

Size

We have seen that usually chocolates of rs 5 to rs 10 are consumed This is followed by chocolats of rs 203050 and so on However all brands are not available in all size

18

Hence consumer who want to purchase chocolates of rs 5 and 10 of a particular brand and if it is not available than they would switch to another brand in which that size is available

PricePrice is an important factor affecting the purchase decision of consumers However consumers were agreed that they are ready to buy a brand even if its price increase They were not ready to compromise their perceived quality of the brand

Packaging and Labeling

A large number of consumers said that packaging and labeling of a brand of chocolates does not affect the purchase decision While the consumer among the lower age group especially the kids gives priority to packaging and labeling Packaging can help brand volumes but cannot be the driver

Brand awareness

Consumers are well aware of the various brands in the market One of the brands that they were ever to recall the most was CADBURY While surveying we found that CADBURY today has become synonymous to chocolates

Advertisement

Advertisement plays a small role in influencing the purchase decision of consumer Advertisement has managed to make consumer aware of various brands It helps in influencing the purchase decision only when all the brands of chocolates are available Brands like CADBURY NESTLE AMUL spend lot of money on advertisement to increase their sales on the other hand local manufactures without advertisement manage to sell their products in the market

Own experienceA large no of consumers said that they would purchase a brand of chocolates based on their own experience of taste perceived quality and so on

Brand nameIt can be seen that various brand have created a brand image for themselves in the minds of consumers When all the brands are available they purchased chocolates on the basis of brand name

Word of mouthMost consumers felt that word of mouth does not affect their purchased decision

19

No brand differentiation

There is no brand differentiation in the market ie even though people ask for dairy milk they satisfied if they walk away with 5starkit-kat munch amul or any other chocolates of any brand

RECOMMENDATION

1 The national brands of chocolates should also be made easily available and consumable in rural areas too 2 The local chocolates are widely popular in specific localities They could even be supplied in a wider area3 As per public opinion the respondents even wanted to experience varities in taste in a specific brands The companies can look forward to that4 In the lower age group between 10 to 20 the teens even wanted different sizes in shapes in chocolate For eg free of our respondents even desire to have chocolats of heart shapes specially for gifting others5 No schemes are introduced in chocolates on regular basis Schemes should be their for few of the expensive brands6 For bringing inovvation chocolate should even be made of different colurs For eg chocolates of Black White Red pink blue and so on would be widely accepted by the children

20

21

Page 19: Chocolate Industry

Hence consumer who want to purchase chocolates of rs 5 and 10 of a particular brand and if it is not available than they would switch to another brand in which that size is available

PricePrice is an important factor affecting the purchase decision of consumers However consumers were agreed that they are ready to buy a brand even if its price increase They were not ready to compromise their perceived quality of the brand

Packaging and Labeling

A large number of consumers said that packaging and labeling of a brand of chocolates does not affect the purchase decision While the consumer among the lower age group especially the kids gives priority to packaging and labeling Packaging can help brand volumes but cannot be the driver

Brand awareness

Consumers are well aware of the various brands in the market One of the brands that they were ever to recall the most was CADBURY While surveying we found that CADBURY today has become synonymous to chocolates

Advertisement

Advertisement plays a small role in influencing the purchase decision of consumer Advertisement has managed to make consumer aware of various brands It helps in influencing the purchase decision only when all the brands of chocolates are available Brands like CADBURY NESTLE AMUL spend lot of money on advertisement to increase their sales on the other hand local manufactures without advertisement manage to sell their products in the market

Own experienceA large no of consumers said that they would purchase a brand of chocolates based on their own experience of taste perceived quality and so on

Brand nameIt can be seen that various brand have created a brand image for themselves in the minds of consumers When all the brands are available they purchased chocolates on the basis of brand name

Word of mouthMost consumers felt that word of mouth does not affect their purchased decision

19

No brand differentiation

There is no brand differentiation in the market ie even though people ask for dairy milk they satisfied if they walk away with 5starkit-kat munch amul or any other chocolates of any brand

RECOMMENDATION

1 The national brands of chocolates should also be made easily available and consumable in rural areas too 2 The local chocolates are widely popular in specific localities They could even be supplied in a wider area3 As per public opinion the respondents even wanted to experience varities in taste in a specific brands The companies can look forward to that4 In the lower age group between 10 to 20 the teens even wanted different sizes in shapes in chocolate For eg free of our respondents even desire to have chocolats of heart shapes specially for gifting others5 No schemes are introduced in chocolates on regular basis Schemes should be their for few of the expensive brands6 For bringing inovvation chocolate should even be made of different colurs For eg chocolates of Black White Red pink blue and so on would be widely accepted by the children

20

21

Page 20: Chocolate Industry

No brand differentiation

There is no brand differentiation in the market ie even though people ask for dairy milk they satisfied if they walk away with 5starkit-kat munch amul or any other chocolates of any brand

RECOMMENDATION

1 The national brands of chocolates should also be made easily available and consumable in rural areas too 2 The local chocolates are widely popular in specific localities They could even be supplied in a wider area3 As per public opinion the respondents even wanted to experience varities in taste in a specific brands The companies can look forward to that4 In the lower age group between 10 to 20 the teens even wanted different sizes in shapes in chocolate For eg free of our respondents even desire to have chocolats of heart shapes specially for gifting others5 No schemes are introduced in chocolates on regular basis Schemes should be their for few of the expensive brands6 For bringing inovvation chocolate should even be made of different colurs For eg chocolates of Black White Red pink blue and so on would be widely accepted by the children

20

21

Page 21: Chocolate Industry

21