A PROJECT REPORTOn “Buying Behavior of consumers of age group 18-25 for milk chocolate bars with special reference to:(A study in Bhiwani) “ Submitted In partial fulfillment of the requirement for the award of degree of Master of Business Administration Session 2005-2007 Supervisor: Mr. Girish Taneja Lecturer Deptt. Of Management Studies TIT&S, Bhiwani Scholar: Surya. P. Chauhan MBA- IV Semester Department of Management Studies The Technological Institute of Textiles & Sciences Bhiwani DECLARATION I SURYA PRAKASH CHAUHAN Roll No.33 of class MBA IV sem of THE TECHNOLOGICAL INSTITUTE OF TEXTILE & SCIENCES, BHIWANI here by declare the project entitled “BUYING BEHAVIOR OF CONSUMER OF AGE GROUP 18-25 FOR MILK CHOCOLATE BARS” is an original work and same has not been submitted to any other institution for awards of any other degree partially or wholly. (Signature of Candidate) CERTIFICATE It is certified that the project entitled “BUYING BEHAVIOR OF CONSUMERS OF AGE GROUP 18-25 FOR MILK CHOCOLATE BARS” submitted to T.I.T&S (M.D.U), Bhiwani in partial fulfillment of the requirement for M.B.A (IV Semester) course has been carried out under my supervision. It is further certified that is a record of bonafide & original work done by for the award of the said degree. Mr.Girish Taneja Lecturer Department Of Management Studies TIT&S, Bhiwani Forwarded By: Director of Institute ACKNOWLEDGEMENT Preservation, inspiration and motivation have always played a key role in the success of any venture. In the present world of cut throat competition project is likely a bridge between theoretical and practical working, willingly I have prepared this particular project. First of all I would like to thank the supreme power, the almighty God who is obviously the one who has always directed me to work on the right path of my life. With his grace this project could become a reality. I feel highly delighted with the way my dissertation report on topic “Buying Behavior of consumers of age group 18-25 for milk chocolate bars with special reference to:(A case study of Bhiwani) “ Any accomplishment requires the effort of many people and this work is not different. Firstly, I would like to extend my sincere thanks to Mr. Girish Taneja (Lecturer, MBA, TIT&S) for his able guidance, regular counseling, keen interest and constant encouragement, without this the project would not have a successful end. I am highly thankful to him for his helpful attitude, regular coaching and inspiration. I sincerely thank to all the faculty members and the staff associated for their support given to me time to time. Also, I would like to thank to all my friends and family members for their support given to me time to time. I don’t have words to express my thanks, but still my heart is full of gratitude for the favors received by me from the every person. (Surya.P.Chauhan) PREFACE The customer is king. Finally ten years after the liberalization of India’s economy began. The market place has, suddenly become tightening competitive. Not only have new players stormed into the country, there are more brands available then ever before in every segment of every market. The customer today buys only that which meets his/her every desire. This demands more intimate understanding of the customer by the “Smart Companies” the study has been divided into six parts. First part contains briefly the CHOCOLATES, history of chocolates, along with the development of passion for chocolates. Second part presents an overview of evolution of chocolates, chocolate industrygrowth and competition in various categories. Major players in this industry. Third and Forth part includes a brief profile about the consumer behavior & Research Methodology for the study. This part describes the term consumer behavior and its importance. Part five deals with the Analysis & Discussion. Important findings have been discussed at last for better understanding. Lastly, Part six namely “Findings & Recommendation” highlights the major findings during the course of the study. Accordingly, recommendations have been made. SURYA PRAKASH CHAUHAN Research Design • Area of Study • Objective of the Study C. Problem Statement B.CONTENTS Introduction to the study Objectives of the study Research Methodology A. Data Collection • Data Collection Methods • Data Collection Techniques D. Sampling Design • Sampling Unit • Sample Size • Sampling Techniques • Limitations of the study Analysis & Interpretation Findings Conclusions Suggestions Annexure • • Questionnaire Bibliography . INTRODUCTION TO THE STUDY . who introduced chocolate to the world. and also the word chocolate comes from the Mayan word xocoatl. Dark brown. A divine substance inspiring passion in those who consume it. they offered cocoa beans to Cortez. Centuries ago it was discovered that fermenting and roasting the beans could create an almost otherworldly flavor. the Aztec consumed chacahoua and used the cocoa bean for currency. A preparation of the seed of cocoa. after years of trying. and ground (without removing any of the fat). The ancient Aztecs believed chocolate To be the “FOOD OF THE GOD” Firstly. In 1523. 3. 4. turning raw. as with vanilla. roasted. bitter cocoa beans into what one 17 th century writer called “the only true food of the gods” has been a fine art. who drank a dark brew called cacahuaquchtl. . a delicate mixture of alchemy and science. often sweetened and flavored. where it swiftly became a favorite food among the rich and noble of Europe. From the beginning. chocolates in domestic market (in special context of nestle. a 31-year-old candy maker in vevey named Daniel peter figured out how to combine milk and cocoa power. A beverage or confection made from this. there is a need to know about the chocolate…that what is chocolate. Later. husked. and the word cocoa from the azlec cacahuati. 2. Cadbury & Amul chocolates) The story of chocolate began in the new world with the Mayans. MEANING OF CHOCOLATE:1.e.INTRODUCTION This project is about preference of the consumers towards FMCG products i. Why chocolate is the most popular dessert flavoring around. In 1875. highly nutritive (about 550 kkal in 100gm of a product). the beverage was called chocolath. Chocolath. grinding is the only small part of stages of production cycle transforming cocoa beans in chocolate. 32-35% of fat. crushing. Mg. stimulators-the bromine and caffeine (1-1. It contains 50-55% of carbohydrates.5%). clearing. chocolath. from lath (water) and choco.ORIGIN OF CHOCOLATE The word chocolate comes from the Mayan word xocoatl. . And also tannin substances (4-5%). and the word ‘cocoa’ from the Aztec cacahuatl. frying. K. See? I did it! (But let’s stick to cocoa) *LoI* From cocoa to chocolate Sorting. which we eat. Puff puff. & B2. Fe and vitamins B1. Chocolate is really the unique product. In Mexico. microelements Na. Supposedly the Spaniard found the Mexican word har to pronounce and called it cacao. 5-6% of fibers. chocolath. tasty. capable to be stored by years without change of properties. P. . During one of his conquest in the New World he met the Aztecs. However the conquistadors pizzaro and. Cortes did show interest in the bean. Before the Spanish explorers discovered the New World. The Aztecs adopted the ides of cocoa consumption from the Mayas. Columbus was the first European to become acquainted with cocoa. chocolates and other “exotic” foods were totally unknown in Europe. Fernando Cortes reached the east coast of Mexico in 1519. the use of cocoa was kept to a minimum by the emperors. The Mayas were the first to cultivate the cocoa bean for the fruits it yielded. pepper and other herbs. as an honored guest of Montezuma (Aztec emperor and inveterate chocolate fanatic) he was offered xocotlatl –a small portion of aromatic chocolate drink mixed eith vanilla. They used the beans as an ingredient in their favorite chocolate drink ‘xocotlatl’. they drank an infusion of grilled seeds and spices. but he wasn’t exactly impressed. Legend suggests that the first beans came out of paradise and lent wisdom and power to the person that ate them. not only were they a poplar means of exchange. The Mayas sacrificed cocoa beans at the funerals of the upper class. in particular.HISTORY OF CHOCOLATE The discovery of cocoa was only a first step in the direction of chocolate. they also had a religious value. cocoa beans were very important. This mixture tasted disgusting and it also contained cocoa beans. For the Mayas. For obvious reasons. For many generations. while not provable. 1765 In 1765 the Englishman James Watt invented the steam engine and in doing so set in motion what we now refer to as the industrial revolution. and they were known chocolate drinkers. The name of the company subsequently changed to the Baker Company. The pope died after consuming a chocolate beverage. Around the same time in the colony of Massachusetts one of the first machine oriented chocolate manufacturing businesses was being established. The partnership of John Hannon. Through there is no proof. 1774 The mysterious rumors that surrounded the death of pope clement XIV. pressed into cakes of paste for eventual use as a chocolate beverage. Cacao refers back to the original native language. Hannon was presumed dead when his ship failed to returned. During a routine trading mission to the West Indies. is not unfounded. . give credence to the notion that chocolate had become a favorable way of distinguish poison.EVOLUTION OF CHOCOLATE (1753-1849) 1753 Swedish biologist Carolus Linnaeus revealed his feeling for chocolate while attending to the task of classifying organisms in a binomial system. which also killed the unwritten confectioner who shared in the consumption. and Dr. James Banker of the Massachusetts colony formed the company Hannon’s Best chocolate. To the chocolate tree he gave the botanical name of theobroma cacao. It was not until 1927 that the Baker family sold their business to General Foods. cacao beans were ground into chocolate liquor. the Jesuits are suspected to have arranged his demise. an Irishman. Through the use of an old grist mill. So the conclusion. The pope had been in opposition to the Jesuits. Theobroma is a Latin term that translates to “food of the gods”. Hoe found that by remixing some of the cocoa butter back into the processed “Dutched” cocoa powder and adding sugar.1819 Francois Louis Cailler opened a chocolate factory on lake Geneva near Vevey. another Joseph Fry. planned early on having a chocolate business. A great-grandson of the original Joseph Fry led the business toward the development of edible chocolate. However. The cake could then be crushed into a powder. 1849 Ghirardelli. This invention would be the key in the development of chocolate as a confection. 1847 Joseph Fry was a Quaker who began manufacturing chocolate under the name of Joseph Fry & Sons. a paste was formed that could be pressed into molds. Though he had been attracted by the Gold Rush. The use of alkaline salt allowed for easier mixing with warm water. purchased a Watts steam engine in 1789 to more efficiently grind cacao. he soon learned that there was more reliable profit to be had selling tents to other gold miners than in actual . The effect of this was a chocolate bar that gathered as much attention as chocolate beverages had. the hard cake that was let from this process had a fat content of only Twenty-Five percent. The removal of the cocoa butter resulted in a commensurate decrease in fat content. It also made the color darker and had the pleasing affect of a less bitter taste. Instead of fifty percent. 1828 Chocolate maker and chemist Coenraad Van Houten developed the process now known as “Dutching. he traveled first to Uruguay and then to Peru before setting in California in 1849. making him a pioneer in the evolution of Swiss chocolate. One of his sons. his sons continued the business. an Italian native. He used machinery he had developed himself.” His patented invention involved the removal of close to half of the cocoa butter from chocolate liquor through the use of hydraulic pressure. While the original Joseph Fry left the company to become a type founder. allowing British manufacturers to expand their market. 1879 During the same period that Cadbury was developing into a formidable chocolate force. a Swiss chocolate manufacturer was struggling to find a way to combine chocolate with milk. In 1824 he had opened a Grocery store in Birmingham. In time he realized the interest and profitability in changing his focus to manufacturing of chocolate. and in 1879 they took over the Birmingham suburb of Bourneville. Cadbury became so renowned that he received a Royal Warrant in 1854 to be the single cocoa and chocolate provider for Queen Victoria. Daniel Peter could not produce something with a smooth consistency . Their business continues to flourish. A British journal called the Lancet discovered that many chocolate manufacturers were employing various methods of “Cutting” chocolate with something less expensive. The factory they built there supported a town. 1868 John Cadbury was another Qyaker who became interested in chocolate production. Cadbury featured cacao beans that he would roast and grind himself. in an effort to boost the economy. the Cadbury Company produced the first box of chocolate candies. England. the British government passed its first food and drug act in 1860. They began to market Cadbury cocoa powder. (1850-1986) 1850’s Prime Minister William Gladstone. Richard and George Cadbury took over their father’s business and in 1866 purchase a Van Houton machine. which is still located in San Francisco. He used the money he saved and started the Ghirardelli chocolate factory. By 1868. Stirred to respond. lowered the taxes on cacao beans. providing both worker housing and recreational facilities. 1860 British FDA is founded.mining. One report revealed that cocoa powder was being thinned with brick powder. sugar. the rollers in conching machines are kept at a controlled temperature for an even higher quality. Pennsylvania and renamed it Hershey. His interest changed course after visiting Europe and researching the many chocolate manufacturers there. Today. The new milk. Milton Hershey took over the town of Derry Church. Cuba around a sugar mill he owned. Today Hershey. the largest food company in the world is Nestle.because the milk could be made more shelf-stable for use a baby formula. Hershey then decided to focus his business on chocolate production and in 1900 he introduced to the world the milk chocolate Hershey bar. Today. and milk if desired. The product of Nestle’s experimentation was a sweetened condensed milk. It was followed five years later by the Hershey kiss. was mixable with chocolate and made a product that would not spoil easily. The process of conching soon became a part of common chocolate manufacturing. Henri Nestle and Daniel Peter formed a company in 1879. Milton Hershey was focused out of Cuba in1959 when Castro gained control. When he visited the world Colombian Exposition in Chicago his interest was initially to purchase and use machines to make chocolate covered candies. Lindt named his chocolate Fondants because their texture was as smooth as the popular creamy candies. which had lesser water. would be ground back and forth by heavy rollers. 1879 A conching machine was created in 1879 that allowed for the smoothest chocolate yet. 1893 Milton Suavely Hershey was a Mennonite from Pennsylvania who owned a caramel manufacturing plant. In addition. Rudolf Lindt used a concave granite bed where chocolate liquor. Thought he also developed a Hershey. With business expanding beyond expectation. . Pennsylvania is an impressive tourist attraction. the friction of the rollers produced a heat that made roasting an unnecessary steps. on West Broadway and canal. 1940’s As the United States geared up for a war in Europe.” While from today’s perspective this may seem odd. after they have been fermented and dried. 1986 When Jim Walsh left his life as an adventures executive in Chicago.1908 1913 The triangular Toblerone chocolate bar was created and launched into market by Swiss chocolate maker Jean Tobler. He purchased plantations on Kea’au and Kona. the Aztecs had used chocolate for the edification of their own warriors. Today. as malnourished holocaust survivors were rescued by American troops offering chocolate. In 1936 he created a thick. In addition to lifting the energy and spirits of the troops during World War II. the chocolate bars became associated with peace. while the other confectioneries have disappeared. nut and raisin filled chocolate bar. was a part of many factories that made up New York City’s confectionary district. and decided to use the fine criollo cacao beans for his foundation. . Cella’s remains. the chocolate is used primarily by pastry chefs. Swiss chocolate maker Jules Sechaud invented the chocolate filled bonbon. Only available through mail order. he decided to move to Hawaii to start a chocolate business. In 1929 their candy factory began manufacturing chocolate-covered cherries. known as the Chunky Bar. The beans he harvested are sent to California. 1929 At the end of the twentieth century Cella’s Confections. Militon Hershey suggested an addition be made to the standard soldier’s “D-Ration. 600 calorie chocolate bars in each “D-Ration. 1936 Philip Silverstein owned a candy company on Delancey Street in New York City. and are processed into high quality chocolate.” The American military began to include three 4 ounce. Cadbury (India). the stock may hold good potential for steady returns over the long term. this is not likely to be a drag on the profitability. However.drink segment has failed to lead support to the company’s bottom-line in the recent past. Bournvita is one among the popular brands. Cadbury (India) has for long been the leading player in the chocolate industry. With good growth protects ahead and a strong financial background.850. However. 981 in March 2000. Competition may stem from players such as nestle in the near term. is one of the leading players in the chocolate and sugar confectionary segment. Cadbury (India) has levered on its marketing strengths and product range. The parent has a 51 percent stake in the company.MAJOR PLAYER IN THE MARKET CADBURY (INDIA) Trading at rs. After hitting a high of Rs. The current price discounts the latest EPS 49 times. For the year-ended December 1999. subsidiary of Cadbury Schweppes Overseas. the company has been flooding the market with new launches. the Cadbury (India) stock presents a good long-term investment option. In the malted food segmented. the health. the stock retraced to its present level. other new players such as Mars and Hershey’s may have an impact on the level of competition. However. close to 76 percent of the sales turnover was derived from chocolate followed by malted foods (22 percent). Apart from this. the reduction in the excise duty on malted drinks . Volumes in Bournvita have been deciding for some time. It is virtually a household name with leading brands such as Five Star and Dairy Milk. Among the successes of recent years are Perk and Picnic. Of late. 34 crores. Post-tax earnings rose an 11. The earnings performance of 2000 first quarter was impressive. . Sales revenue rose 20 per cent to Rs. Shareholders can stay invested. it could provide a boost and growth over the long term. If the top line growth is sustained at this level. 139.and chocolates and the lower import duties on cocoa is likely to have a positive impact on the cost-structure of the firm. Operating margins declined marginally from 16.5 per cent to Rs.7 per cent. 10.34 crores compared to the corresponding previous period.4 per cent to 15. Cailler. bitter cocoa beans into what one 17 th century writer called “the only true food of the gods” has been a fine art. after tears of trying. Centuries ago it was discovered that by fermenting and roasting the beans. Kohler relied on Nestle for milk and marketing expertise.NESTLE The story of chocolate began in the new World with the Mayans. a 31-year-old candy maker in Vevey named Daniel Peter figured out how to combine milk and cocoa powder. The result-milk chocolate. In 1875. they offered cocoa beans to Cortez. where it swiftly became a favorite food among the rich and noble of Europe. a delicate mixture of alchemy and science. and Kohler. In 1523. . the almost inevitable merge took place as Nestle acquired Peter. a friend and neighbor of Henri Nestle. From the beginning. Peter. started a company that would quickly become the world’s leading maker of chocolate. Cailler. an almost otherworldly flavor could be created. Later. who introduced chocolate to the world. who drank a dark brew called cacahuaquchtl. For three decades the company called Peter. tuning raw. the Aztecs consumed chacahoua and used the cocoa bean for currency. In 1929. lamp kisos and billboards for over thirty years. Milk Solids. Cocoa Butter. and the Netherlands to Singapore and New Zealand-thanks to an innovative marketing campaign on the World Wide Web. Archives of hundreds of topicals dating back to 1979 are available on the site. a fitting recognition of the “Thorough bred. Amul’s topical ads for its butter products are posted on its Web site. Today. .5% Milk Solids 20% Product Specifications: Meets all requirements under the PFA for boiled sugar confectionary.33% (Milk fat + Cocoa Fat) Cocoa Solids 7. “A gift foe someone you love”. Amul Chocolate has chosen the phrase “A gift of someone for love” to market their chocolate products. The ultimate compliment to the butter came when a British company recently launched a butter and called it Utterlt Butterly. along with recipes fore Indian dishes featuring Amul products. The round-eyed. ranging fron the U. utterly Butterly Delicious Amul. GCMMF’s Amul brand of milk products receives business queries from dozens of countries.AMUL AMUL CHOCOLATE is made from Sugar.” Every week. with its punchy one-liners amusing Indian viewers from bus stands. The topicals have also been carried every day on the Indian World home page.S. Chubby-Cheeked Amul Moppet has been a wildly popular advertising fixture. Chocolate mass Composition Milk Fat 2% Sugar 55% Total fat 32. Consumer Behavior . or whether it was poorly planned and missed the mark. and effective.INTRODUCTION The term consumer behavior refers to the behavior that consumers display in searching for. Information about the pattern of consumption in various segments of society and dynamics of consumer behavior are central to the understanding for developing new concepts in marketing. It includes the study of what they buy. Thus. The essence of modern marketing concept is that all elements of business should be geared towards identifying and satisfying the needs of the consumers. We would be discussing a simple model of consumer decision making that emotional consumer. money. where they buy it. how often they buy it and how often they use it. using.source (time. effort) on consumption related items. has three major components: 1) 2) 3) Inputs Process Output . insightful. The study of consumer behavior is the study of how individuals make decisions to spend their available re. when they buy it. why they buy it. It signifies whether the marketing strategy has been wise. The modal. evaluating and disposing of products and services that they expect will satisfy their needs. marketers are particularly interested in consumer’s decision-making process. purchasing. Decision Making Process The consumer’s decision to purchase or reject a product is a moments of final truth for marketer. CONSUMER DECISION MAKING PROCESS External influences Firm’s Marketing Efforts • • • • Product Price Place Promotion Socio culture Environment • Family • Reference Group • Other non-commercial influence • Social class • Culture and subculture influences Input Consumer Decision Making • Need recognition • Information search • Valuation alternatives Process Psychological Factors • • • • • Perception Motivation Attitude Learning Personality Experience Post Purchase Behavior Purchase • Trial • Repurchase Post purchase evaluation Output . . the buyer indulges in prepurchase activity. perception. His psychological field comprises of his past learning. Need arousal drives the consumer to collect information about the required product. and attitudes) that effect the consumer’s decision making processes. Prepurchase Activity: After the problem is identified. the person is energized and is likely to be influenced by various factors. There generally remains a time lag when a person thinks to buy and the actual incidence of buying. The degree of perceived risk can also influence this stage of the decision process. which. personality and past experience. In high – risk situation they are likely to engage in complex information search and evaluation tactics. learning. Of key interest to marketer are the various sources of information that the consumer will return to and the relative influence that they will have on his buying behavior. He first indulges in internal search. Chief among these input factors are the marketing – mix activities of organizations that attempt to communicate the benefits of their products and services to their potential customer. The psychological field represents. scans his psychological field so as to recollect of retrieve any information or past experience related to particular need. Perception. During this time. If he is not satisfied he then goes in for external search and looks for various sources of information. It is under stood that need is a father of a deed. affects the consumer’s purchase decision. when internalized.INPUTS The input component draws on external influences that serve as sources of information about a particular product and influence a consumer’s productrelated values and behavior. personality. and the no marketing sociocultural influences. The internal influences (motivation. PROCESS The process component of the modal is concerned with how consumers make decisions. Consumers’ decision rules have been broadly classified into two major categories compensatory and non compensatory decision rules. If a consumer purchase a product (or brand) for the first time. Output The output portion of consumer decision – marking model concerns two closely associated kinds of post decision activity. If the new brand is established product category (cola. Purchase Behavior: Consumer make two types of purchase and repeat purchase. 2. which firms try to encourage because it contributes to greater stability in the marketplace. chewing gum. The objective of both activities is to increase the consumer’s satisfaction with his/her purchase. Purchase behavior and post purchase evaluation. .Evaluation of Alternatives: when evaluating potential alternatives consumers tend to use two types of information: 1. consumers are likely to repeat the purchase. Repeat purchase behavior is closely related to the concept of brand loyalty. Thus. candies) is found by trail to be more satisfactory or better than other brands. Consumers use certain procedures or rules to facilitate a choice among multi – attribute objects. An understanding of which decision rules consumer apply in selecting a particular service or product is useful to marketers concerned with formulating a promotional programme. a trail is the exploratory phase of purchase behavior in which consumers attempt to evaluate a product through direct use. The criteria consumers use to evaluate the brands that constitute their evoked sets usually are expressed in terms of important product attributes. and The criteria they will use to evaluate each brand. this purchase would be considered a trail. and buys a smaller quantity than usual. A “list” of brands from which they plan to make their selection (the evoked set). 5.OBJECTIVE OF THE STUDY 1. To study the brand preferences of consumers from the three brands of chocolates i.e. To study the influence of various aspects on buying behavior. To checkout the satisfaction level of the consumers for chocolate bars they are using. Amul. Cadbury. Nestle available in the market. To find the extent of brand loyalty of consumers that exists among different chocolate brands. 2. 3. 4. . To study the usage & brand awareness of chocolates product in among the residents of Bhiwani. Research Methodology RESEARCH METHODOLOGY Research methodology in a way is a written game plan for conducting research. . classified. It also helps to understand the assumption underlying various techniques and the criteria by which they can decide that certain technique will be applicable to certain problems and other will not. The study is of diagnostic nature and thus the overall research design is going to be rigid. It sheds light on the research problem. in which the data is collected. A)PROBLEM STATEMENT:Research work is management parlance is extremely important for a given close view of the relatives of the real life business issues. This chapter focuses on the various techniques. objectives of the study. analyzed and interrupted so as to each to conclusive results. It includes not only the research methods but also considers the logic behind the methods used in the context of the study and complains why only a particular method of technique has been used. It is of paramount importance . and also its limitations. The design should provide enough provision for protection against bias-ness and must maximize reliability. The later part of the chapter explains the manner. Therefore in order to solve a research problem. methods and assumptions used in this study. tabulated. For any management student who is striving to perform outstandingly.Research methodology has many dimensions. it is necessary to design a research methodology for the problem as the some may differ from problem to problem. As chocolate is regarded as one of the biggest Fast Moving Consumer Good (FMCG). My study topic deals with Consumer Behavior and different factors that influence consumer to purchase a particular brand of chocolates. Survey report deals specially with providing an opportunity to management students to have some exposure in real business world. questionnaire. a number of techniques are employed under the sample survey method i. Taste. Packaging. there are many factors in mind of consumer which induce them to purchase a particular brand of chocolate.that apart from theoretical knowledge he must also gain some practical knowledge. The prime objective of my study is to analyze the effect of various factors on buying behavior of consumers. a) Area of study The area of the study is different Markets of Bhiwani in order to collect the Primary data from the respondents. To collect data. attitudes and practices of society and to explore the problems that cannot be treated by experimental methods. Brand name. Ever changing behavior of consumer. The increasing use of questionnaire is probably due to increased emphasis by social scientists on quantitative measurement to uniformly accumulated data. b) Study area . This method is given prime significance in modern research because of its extensive use to study the relationship of different factors. Some of these factors are Price. B) RESEARCH DESIGN:To analysis the buying behaviors of the residents of Bhiwani Sample Survey Methods has been employed through other methods are also important.e. dominance of different brands in the market compelled me to undertake a research work in this segment. the sampling unit is youth with in the age group of 18-25 years.It indicates the numbers of people to be surveyed.Study area is Bhiwani. it answers who is to be surveyed. In this study.e. Therefore. II Sampling Size: . 100 respondents were considered. the study is preferably allowed down to a representation sample to make the study more manageable. Though large samples give more reliable results than small samples but due to constraints of time and money. Respondents and practicable. c) Target Segment Consumers of Milk chocolates bars of age group 18-25 C) SELECTION OF SAMPLE:It becomes impossible to contact each and every individual of the population due to limitations of essential resources like time and money. Keeping in the view the objectives and resource limitation of the study. the sample size was restricted to 100 respondents. Probability sampling can be of following types: • • Simple random sampling Stratified random sampling . 100(Youths of age group 18-25) The selected sample is representative of the population and is accurate D) SAMPLING PLAN:The following factors will be taken into consideration within the scope of sampling plan: I Sampling Unit: It defines the target population that will be sampled i. the task of data collection begins. stratified random sampling was done since the respondents will classified into well defined classes or strata that were distinct from each other. Though being less expensive. These are several methods for primary data collection like Observation Method. E) COLLECTION OF DATA: After the research problem has been defined and the research design has been chalked out. Hence it should be carefully constructed. The data can be collected mainly through primary sources. through questionnaires and so on. Interview Method. through schedules.• Cluster (area) sample In this case. It has personally been found that people are more frank in giving replies to a questionnaire than to an interview schedule. it has certain limitations like incomplete entries and erroneous responses. but it was supplement with secondary data. It is an investment that is widely used to collect various types of data and consists of long lists of questions designed to collect any information. . I Primary data collection: Primary data is the data which is collected through observation or direct communication with the respondent in one form or another. But the educational qualification of the respondents is an additional factor which renders this technique the most relied upon. II Secondary data collection methods: Secondary data is collected through • • • Magazines Journals Portals Formation of Questionnaire Quite often the questionnaire is considered as the heart of a survey operation. LIMITATIONS OF THE STUDY . The questionnaire framed for the purpose of the study consists of a limited number of questions placed in logical order. that the objective of the question is clear to the respondents. Statistical processors are used this complex data into some significant understandable form. All the questions are centered on the problem keeping in the mind. The term analysis refers to the computation of certain measures along with searching for patterns of relationship that exist among data groups. after collection.Formation of a good questionnaire involves intensive thinking and deliberation of the problem with predetermined objective and aims properly placed in the questionnaires. Data presented in raw state appear unrecognized and complex. Analysis of Data: Data. has to be analyzed in accordance will the outline laid for the time of developing the research plan. The questions were both open and close ended as well as multiple choices. So. While collecting data some of the consumers are not willing to fill the questionnaire. . 3) 4) Sample for the study taken is of only 100 consumers. so they might not fill their true behavior. But to do a completer research a wide area is required. This can also act as a constraint in the study.The project was successfully completed with certain inherent limitations. These limitations were: 1) 2) The time of research was short due to which many fact has been left untouched The Area undertaken in research in Bhiwani only. This can also be a constraint of the study. so the area is also a constraint of the study. Data Analysis & Interpretation . ANALYSIS AND INTERPRETATION Q1. Which companies’ chocolate do you prefer to purchase? Brand Name Cadbury Nestle Amul Percentage 40 35 25 25% 40% Cadbury Nestle Amul 35% As per shown in the Pie chart. . And least share is hold by Amul followed by Nestle. And this result is obtained from the response of customers towards Questionnaire filled by them for the consumption of milk chocolate bars. the maximum market share is hold by Cadbury. . And second most percentage of consumers consumes milk chocolate bars are of daily one. most of the consumers consume milk chocolate bars as 3-4 per week. What is your pattern of consumption? Pattern of consumption More than one per day Daily one 3-4 chocolates per week Weekly Rarely Percentage of consumption 15 25 45 10 5 Percentage of consumption More than one per day Daily one 3-4 chocolates per week Weekely Rarely 10% 5% 15% 25% 45% As shown in Pie chart. which represent 45% of the total number of surveyed consumers.Q2. .Q3.32% of consumers don’t purchase the same chocolate every time. Do you purchase the same chocolate every time? Answer Yes No Percentage 68 32 Percentage 32% Yes No 68% As pie chart shows. it means that mostly consumers are brand loyal. 68% of the consumer purchase the same chocolate every time. and Ref. and Ref. 38% of consumers consider “Quality” as most important factor while switching over to any other brand of milk chocolate bars.5 9. Group Taste As shown by the pie chart. Group Taste Response 6 12 3 3 8 Percentage 18 38 9. and the second most preferred factor is “Taste” . If no. then while switch over to another brand of chocolate then what factor you consider (tick any one)? Factors Price Quality Brand Name Advt.Q4.5 25 Percentage Price 25% 9% 10% 18% Quality Brand Name 38% Advt. .Q5. And the least interested factor is Packaging and Availability. Which factor you consider the most while purchasing the chocolate? Please tick any one. Consumer's consideration Price Taste Brand Packaging Availability Percentage 16 48 18 9 9 Percentage Price 9% 18% 48% 9% 16% T aste Brand Packaging Other 48% of the consumer of milk chocolate bars said that the most considering factor by them on the basis of which they purchase a particular brand of milk chocolate bars is Taste of that milk chocolate bars. Q6.pamplets etc) Percentage 22 14 4 54 6 Percentage Newspaper 6% 22% 14% 4% Magazine Radio 54% Television Others(hoardings.pamplets etc) The buying behavior of consumers is also affected by the different type of advertisements. As shown in the pie chart. and the second most influencing factor is newspaper. TV. .e.banner. the most influencing media is electronic media i.b anner. Which mode of advertisement influence you most to buy a particular Chocolate? Please tick any one. Media Newspaper Magazine Radio Television Others(hoardings. . And this statement is supported by 55% of consumers of milk chocolate bars. Reference Groups Friends Family Retailers Celebrity Others Percentage 55 3 1 39 2 Percentage 2 39 55 13 Friends Family Retailers Celebrity Others As shown in the pie chart. from reference group friends are the most influencing factor which influence consumer to purchase a particular brand of milk chocolate. Which reference group influence you most to buy a particular chocolate? Please tick any one. and this statement is supported by 39% of consumers. And the second most influencing factor which influence customer to purchase a particular brand of milk chocolate bar are celebrities .Q7. Whether you check or consider manufacturing and expiry date while buying any chocolate? ANSWER YES NO Percentage 55 45 Percentage 45% 55% Yes N o Pie chart says that 55% of the consumer check or consider manufacturing and expiring date while buying any chocolate. This should be a matter of concern . 45% of consumers don’t go for that.Q8. How much you are satisfied with the present brand of chocolate which you often purchase? Satisfaction Level Highly satisfied Satisfied Undecided Dissatisfied Highly dissatisfied Percentage 27 32 21 12 8 Percentage Highly satisfied Satisfied Undecided 21% 32% 12% 8% 27% Dissatisfied Highly dissatisfied About 27%of consumers are highly satisfied with the present brands of Milk chocolate bars in Bhiwani and 32% are satisfied. if we consider brand wise then milk chocolate bar of Cadbury is the most preferred brand in Bhiwani which holds 40% of the market share and after that Nestle has second position with a holding of 35% of the market share and the least preferred brand from the take brand to make report is Amul with a holding of 25% of market share .Q9. Findings & Conclusion . and from reference group friends are at most influencing position. Quality is the most important factor which consumers consider while switching over to any other brand of milk chocolate bars. But brands like Amul are not able to get proper place in the market in spite that good advertisement is being done by Amul also. 6 (only for milk chocolate bars). The buying behavior of consumer for different brands of milk chocolate bars is affected by various factors like price.e. For 48% of the consumers the most important factor which is considered while purchasing any milk chocolate bars is Taste of that chocolate. As compared to Cadbury Nestle Company is having 2 brands and Amul is with 4 brands of chocolates. like some milk chocolate bars brands of Swiss and French chocolates. They give preference to other factors also. The buying behavior of consumers is also affected by the different type of advertisements. brand etc. taste. Cadbury.FINDINGS & CONCLUSION The findings of the study of consumer buying behavior in chocolates states among all the three to brands i.e. 68% of the consumers are brand loyal. .e. Consumers of Bhiwani are more attracted towards the foreign brands like Cadbury and Nestle and demand that more number of foreign milk chocolate bars should be available in the market. Nestle and Amul. Nestle 35% and Amul 25%. 40%. TV. The brand at first place is Cadbury. packaging.e. As this thing shows that consumer of Bhiwani are more satisfied with the foreign brands and hence demand more of it. Among all these Brands Cadbury is the only company offering largest number of brands in chocolates i. the Nestle (2nd) and last is Amul. Among all these three Cadbury is having the largest market share i. And the most influencing media is electronic media i. but most important thing is taste. This should be a matter of concern SUGGESTIONS . 55% of the consumer check or consider manufacturing and expiring date while buying any chocolate. 45% of consumers don’t go for that. Some important suggestions are as follows: 1. As factors other than TV and Newspaper are considered less so companies should use the print and electronic media for advertisement in large extent. 3. The chocolate companies should think on the matter that why the consumers switch over to the other brands.SUGGESTIONS A detail study of the “Consumer’s Buying Behavior of Age Group 18-25 For Milk Chocolates Bars” was done. 4. The chocolate companies should put more & more emphasis on the taste and quality of the chocolate so as to gain brand loyalty. 5. 2. The Indian company AMUL has to review its process so as to gain brand loyalty of the consumers. . The chocolates whose expiry dates goes off should be replaced at once and fresh stock should be offered. Annexure Questionnaire On . Price Quality Brand Name Advertisement and Reference group Taste Q5. Which factor you consider the most while purchasing the chocolate (tick any one)? . What is your pattern of consumption? More than one per day 3-4 Chocolate per week Rarely Q3. Do you purchase same chocolate every time? Yes No Daily One weekly Amul Q4.“Buying behavior of consumer for Milk chocolate bar of age group 18-25 Name of the consumer Age Sex Income ____________________________________ ____________________________________ ____________________________________ ________________________________ Q1. Which companies’ chocolate do you prefer to purchase? Cadbury Nestle Q2. then while switch over to another brand of chocolate then what factor you consider? Please tick any one. If no. Magazine Radio Other Q7. How much you are satisfied with the present brand of chocolate which you often purchase? Highly Satisfied Undecided Highly Dissatisfied Q10. Whether you check or consider manufacturing and expiry date while buying any chocolate? Yes No Q9. Friends Celebrity Family Other Retailer Newspaper Television Q8.Price Brand Availability Taste Packaging Q6. What is your suggestion for the improvement of your preferred chocolate Brand? _______________________________________________________________ Satisfy Dissatisfied BIBLOGRAPHY . Which reference group influence you most to buy a particular chocolate? Please tick any one. Which mode of advertisement influence you most to buy a particular Chocolate? Please tick any one. Kotler Philip Marketing Research.Traditional Mass Media.S Research Methodology.altavist. November 2006 Business India. Article By Dr. Schiffman & Kanauk MAGAZINES & JOUNALS • • • • • Advertising Express. Advertising Business Today.com .J Consumer Behaviour.com www.BOOKS • • • • • Marketing Management.Suresh Indian Journal of Marketing. Della A. C.com www.com www.nestle. By K. Trends WEBSITES www.R kothari Consumer Behaviour.Banusmathy Business World.consumerpsychology.amul.com www. September 2006.cadburyindia. Donald T. March 2006.