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A Project Report On Cadbury

1) Consumer behavior is influenced by many factors including marketing, personal, psychological, social, and cultural factors. It varies between individuals and products. 2) Understanding consumer behavior is important for marketers to make decisions around product design, pricing, promotion, packaging, and distribution. 3) Positive consumer behavior can lead to purchase decisions and increased sales while meeting consumer needs and wants.

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67% found this document useful (3 votes)
4K views48 pages

A Project Report On Cadbury

1) Consumer behavior is influenced by many factors including marketing, personal, psychological, social, and cultural factors. It varies between individuals and products. 2) Understanding consumer behavior is important for marketers to make decisions around product design, pricing, promotion, packaging, and distribution. 3) Positive consumer behavior can lead to purchase decisions and increased sales while meeting consumer needs and wants.

Uploaded by

nihal shingade
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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A Project Report On

“Analyzing the Consumer Behavior and Buying


Pattern of Cadbury Chocolates in the Market.” 
1. INTRODUCTION

Consumer behavior is the study of how individual customers, groups or


organizations select, buy, use, and dispose ideas, goods, and services to satisfy
their needs and wants.
It refers to the actions of the consumers in the marketplace and the underlying
motives for those actions.

Marketers expect that by understanding what causes the consumers to buy


particular goods and services, they will be able to determine—which products
are needed in the marketplace, which are obsolete, and how best to present the
goods to the consumers.
The study of consumer behavior assumes that the consumers are actors in the
marketplace. The perspective of role theory assumes that consumers play
various roles in the marketplace. Starting from the information provider, from
the user to the payer and to the disposer, consumers play these roles in the
decision process.

The roles also vary in different consumption situations; for example, a mother
plays the role of an influencer in a child’s purchase process, whereas she plays
the role of a disposer for the products consumed by the family.

Some selected definitions of consumer behavior are as follows:


1. According to Engel, Blackwell, and Mansard, ‘consumer behavior is the
actions and decision processes of people who purchase goods and services for
personal consumption’.
2. According to Louden and Bitta, ‘consumer behavior is the decision process
and physical activity, which individuals engage in when evaluating, acquiring,
using or disposing of goods and services’.

Nature of Consumer Behavior:


1. Influenced by various factors:
The various factors that influence the consumer behavior are as follows:
a. Marketing factors such as product design, price, promotion, packaging,
positioning and distribution.

b. Personal factors such as age, gender, education and income level.

c. Psychological factors such as buying motives, perception of the product and


attitudes towards the product.

d. Situational factors such as physical surroundings at the time of purchase,


social surroundings and time factor.

e. Social factors such as social status, reference groups and family.

f. Cultural factors, such as religion, social class—caste and sub-castes.

2. Undergoes a constant change:


Consumer behavior is not static. It undergoes a change over a period of time
depending on the nature of products. For example, kids prefer colorful and
fancy footwear, but as they grow up as teenagers and young adults, they prefer
trendy footwear, and as middle-aged and senior citizens they prefer more sober
footwear. The change in buying behavior may take place due to several other
factors such as increase in income level, education level and marketing factors.

3. Varies from consumer to consumer:


All consumers do not behave in the same manner. Different consumers behave
differently. The differences in consumer behavior are due to individual factors
such as the nature of the consumers, lifestyle and culture. For example, some
consumers are techolics. They go on a shopping and spend beyond their means.

They borrow money from friends, relatives, banks, and at times even adopt
unethical means to spend on shopping of advance technologies. But there are
other consumers who, despite having surplus money, do not go even for the
regular purchases and avoid use and purchase of advance technologies.

4. Varies from region to region and country to county:


The consumer behavior varies across states, regions and countries. For example,
the behavior of the urban consumers is different from that of the rural
consumers. A good number of rural consumers are conservative in their buying
behaviors’.

The rich rural consumers may think twice to spend on luxuries despite having
sufficient funds, whereas the urban consumers may even take bank loans to buy
luxury items such as cars and household appliances. The consumer behavior
may also varies across the states, regions and countries. It may differ depending
on the upbringing, lifestyles and level of development.

5. Information on consumer behavior is important to the


marketers:
Marketers need to have a good knowledge of the consumer behavior. They need
to study the various factors that influence the consumer behavior of their target
customers.

The knowledge of consumer behavior enables them to take


appropriate marketing decisions in respect of the following
factors:
a. Product design/model
b. Pricing of the product
c. Promotion of the product
d. Packaging
e. Positioning
f. Place of distribution

6. Leads to purchase decision:


A positive consumer behavior leads to a purchase decision. A consumer may
take the decision of buying a product on the basis of different buying motives.
The purchase decision leads to higher demand, and the sales of the marketers
increase. Therefore, marketers need to influence consumer behavior to increase
their purchases.

7. Varies from product to product:


Consumer behavior is different for different products. There are some
consumers who may buy more quantity of certain items and very low or no
quantity of other items. For example, teenagers may spend heavily on products
such as cell phones and branded wears for snob appeal, but may not spend on
general and academic reading. A middle- aged person may spend less on
clothing, but may invest money in savings, insurance schemes, pension
schemes, and so on.

8. Improves standard of living:


The buying behavior of the consumers may lead to higher standard of living.
The more a person buys the goods and services, the higher is the standard of
living. But if a person spends less on goods and services, despite having a good
income, they deprive themselves of higher standard of living.

9. Reflects status:
The consumer behavior is not only influenced by the status of a consumer, but it
also reflects it. The consumers who own luxury cars, watches and other items
are considered belonging to a higher status. The luxury items also give a sense
of pride to the owners.

FACTORS AFFECTING CONSUMER BEHAVIOR:

1. CULTURAL FACTORS:
Consumer behavior is deeply influenced by cultural factors, such as buyer’s
culture, subculture and social class.

Essentially, culture is the share of each company and is the major cause of the
person who wants and behavior. The influence of culture on the purchasing
behavior varies from country to country; therefore sellers have to be very
careful in the analysis of the culture of different groups, regions or even
countries.
2. SOCIAL FACTORS :

Social factors also influence the purchasing behavior of consumers. Social


factors are: the reference groups, family, the role and status.
Buyer behavior is strongly influenced by a family member.
So vendors are trying to find the roles and influence of the husband, wife and
children. If the decision to purchase a particular product is influenced by the
wife then sellers will try to target women in their ads.
Here we should note that the purchase of roles change with changing lifestyles
of consumers.

3. PERSONAL FACTORS:
Personal factors may also affect consumer behavior. Some of the important
factors that influence personal buying behavior are: lifestyle, economic status,
occupation, age, personality and self esteem.

Age and life cycle have a potential impact on the purchasing behavior of
consumers. It is obvious that consumers change the purchase of goods and
services over time. Family life cycle consists of different stages as young
singles, married couples, and unmarried couples etc that help marketers to
develop suitable products for each stage.
The occupation of a person has a significant impact on their buying behavior.
For example, a marketing manager of an organization is trying to buy business
suits, while a low level worker in the same organization buy-resistant clothing
works.

Economic situation
Economic situation of the consumer has a great influence on their buying
behavior. If income and savings a customer is high, then going to buy more
expensive products. Moreover, a person with low income and savings buy
cheap products.
Lifestyle clients are another factor affecting import purchasing behavior of
consumers. Lifestyle refers to the way a person lives in a society and express
things in their environment. It is determined by the client’s interests, opinions,
etc and activities shapes their whole pattern of acting and interacting in the
world

Personality changes from person to person, time to time and place to place.
Therefore, it can greatly influence the buying behavior of customers. In fact,
personality is not what one has, but is the totality of the conduct of a man in
different circumstances. Has a different characteristic, such as dominance,
aggression, confidence etc that may be useful to determine the behavior of
consumers to the product or service.

4. PSYCHOLOGICAL FACTORS:
There are four major psychological factors that affect the purchasing behavior
of consumers. These are: perception, motivation, learning, beliefs and attitudes.

• Motivation
The level of motivation also affects the purchasing behavior of customers. Each
person has different needs, such as physiological needs, biological needs, social
needs, etc. The nature of the requirements is that some are more urgent, while
others are less pressing. Therefore, a need becomes a motive when it is most
urgent to lead the individual to seek satisfaction.

• Perception
Select, organize and interpret information in a way to produce a meaningful
experience of the world is called perception. There are three different perceptual
processes which are selective attention, selective distortion and selective
retention. In the case of selective attention, sellers try to attract the attention of
the customer. Whereas in case of selective distortion, customers try to interpret
the information in a way that supports what customers already believe.
Similarly, in the case of selective retention, marketers try to retain information
that supports their beliefs.

• Beliefs and Attitudes


Client has specific beliefs and attitudes towards different products. Because
such beliefs and attitudes shape the brand image and affect consumer buying
behavior so traders are interested in them. Marketers can change beliefs and
attitudes of customers with special campaigns in this regard.
2. COMPANY PROFILE

(John Cadbury: Founder of Cadbury)

Cadbury, formerly Cadbury's and Cadbury Schweppes, is a


British multinational confectionery company wholly owned by Mondelez
International (originally Kraft Foods) since 2010. It is the second-largest
confectionery brand in the world after Mars. Cadbury is internationally
headquartered in Uxbridge, West London, and operates in more than 50
countries worldwide. It is known for its Dairy Milk chocolate, the Creme
Egg and Roses selection box, and many other confectionery products. One of
the best-known British brands, in 2013 The Daily Telegraph named Cadbury
among Britain's most successful exports.
Cadbury was established in Birmingham, England in 1824, by John
Cadbury who sold tea, coffee and drinking chocolate. Cadbury developed the
business with his brother Benjamin, followed by his sons Richard and George.
George developed the Bourneville estate, a model village designed to give the
company's workers improved living conditions. Dairy Milk chocolate,
introduced in 1905, used a higher proportion of milk within the recipe compared
with rival products. By 1914, the chocolate was the company's best-selling
product. Cadbury, alongside Rowntree's and Fry, were the big three British
confectionery manufacturers throughout much of the nineteenth and twentieth
centuries.

Cadbury India:
In 1948, Cadbury India began its operations in India by importing chocolates.
On 19 July 1948, Cadbury was incorporated in India. It now has manufacturing
facilities in Thane, Induri (Pune) and Malanpur, (Gwalior), Hyderabad,
Bangalore and Baddi (Himachal Pradesh) and sales offices in New Delhi,
Mumbai, Kolkata and Chennai. The corporate head office is in Mumbai. The
head office is presently situated at Pedder Road, Mumbai, under the name of
"Cadbury House". This monumental structure at Pedder Road has been a
landmark for the citizens of Mumbai since its creation. Since 1965 Cadbury has
also pioneered the development of cocoa cultivation in India. For over two
decades, Cadbury has worked with the Kerala Agricultural University to
undertake cocoa research. Currently, Cadbury India operates in five categories –
Chocolate confectionery, Beverages, Biscuits, Gum and Candy. Its products
include Cadbury Dairy Milk, Dairy Milk Silk, Bournville, 5-Star, Temptations,
Perk, Eclairs, Bournvita, Celebrations, Gems, Bubbaloo, Cadbury Dairy Milk
Shots, Toblerone, Halls, Bilkul, Tang, and Oreo.
It is the market leader in the chocolate confectionery business with a market
share of over 70%. On 21 April 2014, Cadbury India changed its name to
Mondelez India Foods Limited.

Mission:
“Cadbury means quality; this is our promise. Our reputation is built upon
quality; our commitment to continuous improvement will ensure that our
promise is delivered.”

Vision:
“Working together to create brands people love.”

 The secret of Cadbury’s success:

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

SWOT Analysis:

Cadbury is one of the topmost FMCG brands in India and hence there is no
doubt that the strengths and opportunities of Cadbury are far more than its
weaknesses and threats. Let us delve deeper in the SWOT Analysis of Cadbury.

Strengths in the SWOT analysis of Cadbury:


World leader – Cadbury is the world’s leader in chocolates. Known to have the
best manufacturing and a wide distribution channel, Cadbury has a presence in
160 or more countries.

Powerhouse brands and Products – Cadbury has many strong brands in


its product portfolio such as dairy milk, Bournvita, Oreo, 5star and others. The
products are high quality products and some of them are cash cows for Cadbury.

Brand name, Brand equity and Brand loyalty – Cadbury products are blessed


with a fantastic brand loyalty. Due to its marketing and strong branding over the
years, the brand equity of Cadbury is also high and hence Cadbury is
comfortable charging a premium for its product because of the high brand
equity. Finally some brand names within the Cadbury family are known
worldwide and are desired by many.

Positioning as gift – The smartest tactic that Cadbury has done over the years
with products like dairy milk and celebrations is that these chocolates are
positioned for gifting. In fact the recent bournville, has a complete focus on the
gifting position. Due to this smart strategy Cadbury has safely differentiated
itself from majority of its competitors.

Promotions – With an amazing tag line of “Kuch Meetha Ho Jaye” along with
fantastic ATL and BTL activities, Cadbury has one of the strongest promotions
in the FMCG industry. This further imparts strength to Cadbury because it
provides excellent brand recall.

Indian connection– Cadbury is one of the few brands which connect so well
with the Indian Diaspora. For Indians, family, friends and love are all important
parts of their life. And Cadbury has always focused on emotional marketing to
connect with the Indian audience.

Placement and distribution – Cadbury has a superb distribution strategy in


place and like all FMCG companies, it uses the strategy of breaking the bulk.
Distributing to 200 countries with a variety of more than 40 variants is not a
small feat. And Cadbury has been achieving the same for the past many years. It
is known to have one of the best FMCG distribution channels in India.

Weaknesses in the SWOT analysis of Cadbury:


As mentioned previously, a brand like Cadbury is expected to have many
strengths and few weaknesses, and the same is the case. Cadbury’s weakness is
its rural distribution considering India has such a wide rural diaspora which can
be covered.

At the same time, A few cases here and there have happened based on the
quality of the product where cockroaches or other rodents were found in the
chocolate. It is inexcusable for a brand like Cadbury to show such ignorance
because such infected chocolates should not leave quality control at all. Thus
quality control needs to be strengthened.

Opportunities in the SWOT analysis of Cadbury:


Rural markets – What is a weakness can become an opportunity. Penetrating
rural markets and distribution in rural markets can be a large opportunity for
Cadbury. It is present in foreign countries and a rural presence is much needed
for Cadbury which will boost the brands presence and turnover.
New Tastes – Indian consumers have a sweet tooth and they frequently like to
eat small chocolates as well as chocolate bars. On top of it, there are various
flavors which consumers like. Thus, new tastes and new flavors are an
opportunity which Cadbury can generate regularly.

Threats in the SWOT analysis of Cadbury:


Cost and price increase – With an increase in fuel cost as well as cost of
transportation, distribution cost has gone up. At the same time, the cost of
procurement and manufacturing is high as well. Thus, over the years, the
constant increase in costing and thereby pricing of the product is a threat to
Cadbury as it creates a gap for other companies to enter.

Health consciousness on the rise – Health consciousness is on the rise amongst


the Indian population. Many people prefer drinking health juices as well as
fruits rather than having chocolates. Every week you will see articles on news
papers as well as on blogs which advice against eating chocolate and propagate
the benefits of staying healthy. At the same time, many parents have stopped
giving chocolates to their kids looking at the adverse affects.

Decreasing importance of festivals – Cadbury has spent years to get the


position of a gift on festivals and occasions. What happens when the importance
of these festivals drops? The buying of chocolates also drops.

Rising demand of people, growing purchasing power – Nowadays, if you gift


a chocolate to children, they are likely to demand a toy car, a bicycle or for a
young adult, a computer. Thus, with a rise in purchasing power, the demand of
gifts also has gone up in value and just a chocolate will not suffice. This is also
a threat for Cadbury.

PEST Analysis:

Political:

 Liberalization measures prompted by WTO affecting sales by way of


competition from imports; Direct imports from Cadbury Schweppes by
dollar stores might erode market share.
 Change in government policies has allowed entry of foreign players; US-
based chocolate maker Hershey’s is mulling a foray into the Indian
chocolate market through its joint venture with Godrej.
 “Too good to share” Kashmir ad campaign for ‘Temptations’ (2002) lead to a
major controversy; Political parties staged rallies outside its offices and
newspaper editorials lambasted the company for its insensitivity. The Ad
campaign was withdrawn and a public apology was issued.
 The Food Safety and Standard Bill, 2005 with penal provisions requires a
review as the same gives huge powers to the Inspecting Officers to seize
food articles without authorization and may create unwanted confusion
to the detriment of the company.

Economic:

 The prices of cocoa and milk, the chief ingredients used in chocolates,
have gone up by 50 per cent, while the price of sugar, another important
raw material, has come down. The overall input costs have gone up by 20
per cent. India imports most of its cocoa requirements and the prices of
cocoa have risen globally due to unavailability of cocoa. If the prices of
these commodities keep increasing, Cadbury will be forced to increase
the prices.
 Low margins, high volumes, price sensitivity of the industry and
competition from cheaper substitutes leave little room for
price maneuvering.

Social:

 In October 2003, seizure of chocolates stock from Pune plant after worms
were found by customers in Dairy Milk packages; Sales dropped by 30
percent where it was expected to grow by 15 percent owing to the festive
season; Advertisements went off air for a month and half; To regain the
lost faith of customers, Cadbury invested in technology to the tune of
Rs.15 Cr. roped in Amitabh Bachchan as the brand ambassador and
upped ad spends by 15 percent.
 “Indianization” of the brand to increase width of consumption by entering the
Indian mind space.
 Making Cadbury a part of Indian customs and traditions positioning
chocolates as a substitute to sweets.
Technological:

 Adoption of JDA software’s space and category management solution


resulted in 93.75% reduction in planning and processing time
and increase in productivity.
 e-Commerce has not picked up that well - not much turnover through this
route future growth prospects of this channel.

The 5C’s Model:


Company:

Cadbury dairy milk is a brand of chocolate made by Cadbury Plc. unit of Kraft Foods
and sold in several countries around the world. It first went on sale in 1905 in
the United Kingdom. The current parent is Mondelez International.

Customers:

The prospective customer of dairy milk range from 5 to 60 years of age. Since
dairy milk has a range of product suited for every member of the family. The
aim is to strengthen the brand relationship in the current consumer’s life. The
ranges vary for diary milk. Whereas some buy it as an alternative for sweet
others buy it as a gift item. The consumers mostly buy the product on impulse
and are influenced by taste/flavor and then by company/brand.

 Competitors:

The main competitors of Dairy milk in India are Nestle, Ferrero Rocher, Amul
chocolates & unbranded chocolate. The high end chocolates (Bourneville and
Silk) also face competition also face competition from the imported Swiss
chocolates. But one of the biggest advantages the dairy milk has over its
competitors is the brand loyalty that it has got. The excellent advertising, reach
and accessibility have made it the top of mind brand in the chocolate category.

Climate:

The climate for the chocolate industry and dairy milk in particular seems very
attractive in a country like India. With the size of the market being so big along
with encouraging category growth the prospects look very good. Since the
product is not seasonal and the margin is also good makes the climate for the
industry even better. With new innovations coming up in terms of product and
packaging the market is still on a growth curve.

Collaborators:

As already said Cadbury dairy milk manages a huge range of retailers and
whole sellers who make up the collaborators. Over the years the company has
partnered with various other companies like Adam Philippines in 2001 so that
diary milk has a much wider distribution network in the Philippines.

Segmentation, Targeting and Positioning:


Segmentation:

For more than six decades now, Cadbury has enjoyed leadership position in the
Indian chocolate market to the extent that 'Cadbury’ has become a generic name for
chocolate products. Cadbury has leading brands in all the segments viz bars
(Dairy Milk, Crackle, Temptations, 5 star, Milk Treat).

Market place for any product is comprised of many different segments of


consumers, each with different needs and wants. Market segmentation can be
defined in a number of ways such as:

Demographic variables:

(e.g. Consumers age groups, gender, states, income, etc…).Current Population


of India- with 1,270,272,105 (1.27billion) people is the second most populous
country in the world. With the population growth rate at 1.58%, India is
predicted to have more than 1.53billion people by the end of 2030. More than
50% of India's current population is below the age of 25 and over 65% below the age
of 35.

 Geography:

About 72.2% of the population lives in some 638,000 villages and the rest 27.8% in
about 5,480 towns and urban agglomerations. So India is the biggest market for
Chocolate in terms of population. The lifestyle of consumers (i.e. their interests
and activities) the benefits which consumers look for in a product or on the
occasions when the product might be consumed. Cadbury takes into account all
these factors when producing a range of products.

 Break segment:

 Products which are normally consume as a snatched break and often with tea and
coffee, for example Cadbury’s Perk and Oreo Biscuits.

 Impulse segment:  

These products are often purchase on impulse, eating these and then. They include
product such as Cadbury’s Dairy Milk.

 Take home segment:

 This describes product that are normally purchased from supermarkets, taken
home consumed at a later stage. The price of Cadbury dairy milk is reasonable
and affordable. So a person does not need to think much before purchasing it,
they can easily buy it any time when they want to buy. The income of a person
does not play any important role in it. Cadbury dairy milk will not be much
affected by the generation differences. All types of peoples like to purchase the
Cadbury dairy milk when they want to buy it.

Targeting:

Starting from 1905 the purchasers of dairy milk have changed from children
to all age groups. When Cadbury started its operation in India their main buyers
were children and the youth who brought chocolates to celebrate special
occasion. This limited the market for Cadbury dairy milk. This is a reason that
Cadbury came out with the campaign of (‘kuch meetha ho jaye’) to make dairy milk
synonymous with sweet so that it could target all the age groups. In India it was a
mentality that chocolates are for children and the adults were more inclined
towards to the conventional sweets. This campaign targeted them and saw a
change in the target market for the brand. Now the target market for dairy milk
is every member of the family.
Cadbury’s Dairy milk always aimed for the bigger bite of the Indian market. It has been
the market leader in the chocolate category for years.The main objective of
Cadbury’s dairy milk is very clear, reach the audience by showing them their
reflection. Showing small happiness and cheerful moment’s that we see in our
day to day life is cherished by enjoying a bite of Cadbury’s Dairy milk and by
adding an emotional touch to it, & has won the Indian audience thoroughly. They are
Positioning Diary milk as a successful alternative to the traditional Indian
sweets in unique way in order to cash in the rich tradition of Indian people
associated with desserts, birthday gifting through Facebook, gifting in schools
(15th August &26th January) & on birthdays, gifting in offices on birthday’s & gifting
with marriages invitation card & after marriage ceremony.

Positioning:

Cadbury Dairy Milk excels at positioning. Not only can the chocolate bars have
many different positions based on which segment they are in, but also none of
the positions damper the effects of other positions! Youth see with word
Cadbury as a synonym for chocolate, others see it as synonyms for sweet and
love and bliss. In India it positioned itself as “spontaneous, special, carefree, real
moments (‘Mazza aa gaya’) in the initial stage. But later it tried to position itself as
brand that is synonymous with sweet (‘Kuch meetha ho jaye’). The most recent
campaign (‘Shubh Aarambh’) tries to take forward the initial positioning of dairy
milk as an alternative for the traditional sweet and positions itself as something
that is as auspicious as the sweet which is generally offered as ‘bhog’ to gods.

The Product Life Cycle of CDM:


The product life cycle model helps marketers identify the different stages that
the sales and profits of a product go through during the course of its lifetime.
There are 4 stages to the product life cycle: introduction, growth, maturity and
decline.

1.Introduction:

Sales are slow as the product is not yet known. Costs are high due to heavy
marketing spend to create awareness. Emphasis is on advertising and
distribution. The Cadbury Dairy milk launched by Cadbury in 1905 is an
example of a brand at the introduction stage.

2. Growth:
This stage shows growing market acceptance and increasing profits.
Competitors begin to enter the marketplace. The business concentrates on
optimizing product availability. The Cadbury Dairy milk is the market leader in
chocolate market with 30 % market share example of brand at growth stage.3.

3. Maturity:

The rate of sales growth slows down as the product has been widely distributed
and sold. The company now focuses on creating brand extensions and
promotion offers to boost sales. New product research is critical to ensure future
sales. The Cadbury Dairy Milk Silk chocolate range is an example of creating
brand extensions brand at the maturity stage.

4. Decline:

Sales slow down dramatically and profits fall off. The product may be dropped
to make way for new products and the cycle recommences. So far CDM has not
reached at this stage because of extension in maturity stage.

Fig. PLC of Cadbury Dairy Milk


BCG Matrix:
Boston Consulting Group Matrix based on product life cycle approach to use
the charts, analyst plot a scattered graph to rank the product on the basis of
relative market share& growth rate. The BCG matrix is used in business to
under where to invest, harvest& divest. This matrix also shows the relationship
between cash-generating products & cash-caters.

1. Star:

Products in rapidly growing markets in which the company has high relative
market share. Star products generates the high amount cash but are expensive to
support. They are good investment as have high earning potentials both at
present & at future time. That investment is likely to be needed if the company
wants to retain its market positions, as competitors will be trying to emulate
stars .Cadbury India has two star products Cadbury Dairy Milk Chocolates with
30% market share

in chocolate market & Cadbury Bournvita 16.2 % share in malted foods


category(as per Nielsen data for the quarter ending March-13).
Fig. BCG Matrix.

2. Cash Cows:

 Products in slow growth, or even static, market in which they have relatively
high market share are called as Cash Cows. They require little promotion
although underinvestment can turn them into dogs so they should not be taken
for granted. The company’s objective is likely to be hold this position in order to
obtain maximum return on investment (ROI).Cadbury India has two cash cow
products Perk & Gums.

3. Dogs:

Dogs are in stagnant or slow-growing markets have relatively low market share.
One company’s dog can become another’s cash cow or even a star if they are operating
in different markets or market segments. Cadbury India has three dogs 5 Star,
GEMS & Eclairs.

4. Question mark:

Products in this quadrant are in rapid growing market but hold a relatively low


market share. Cadbury India has two dogs Toblerone & Bourneville.
3. OBJECTIVES OF THE STUDY

Our main objective of the study is to “analyze the consumer behavior and
buying pattern of Cadbury Chocolates in the market.” 
 
Following are the some of the main objective of our report:
 
 Analyze the buying behavior of consumers regarding Cadbury
Chocolates.
 
 To study about the customer taste and preference in the confectionary
item.
 
 And also to find out the satisfaction level of customer about their product.
 
 To find advertisement effect consumer buying behavior.

 To analyze the measures to improve the current consumer satisfaction.


4. RESEARCH METHODOLOGY

Generally research is considered as an endeavor to arrive at the answer to


intellectual and practical problem through the application of scientific methods
to the knowledge universe. It is movement from known to unknown. Research
is essentially a logical and an organized enquiry seeking facts through objective
verifiable methods in order to discover the relation among them and to refer
from the board principles or laws. It is really a method of critical thinking.

Research may be defined as a systematic and objective analysis and recording


of controlled observations that may lead to the development of generalization of
principles or theories resulting in predicting and possibly ultimate control of
events.

Methodology is often used in a narrow sense to refer to methods, technology or


tools employed for the collection data as well as it’s processing. This is also
used sometimes to designate data collection to arrive at the conclusion. Infects,
it describes that what should have been done. It provides answers to some of the
major questions while search like what must be done, how it will be employed,
how sources of data will be analyzed to arrive at the conclusion. For systematic
research scientific approach is necessary. It is therefore essential to follow
systematic methodology to arrive at a proper conclusion.

The procedures involved in the concept of research methodology are:-

1) Selection of subject.

2) Selection of project title.

3) Selection of time period.

4) Collection of data.

5) Reliability of data.

6) Analysis of data.
7) Reporting.

 METHODOLOGY OF ANALYSIS:-

Data which has been collected through various sources has to proceed and
analyzed the accepted relevant scientific method are used for analysed
processing is done by different graphs, which clearly show the finding and half
us to understand thing is more better way different table and comparative chart
also used for analyzed and the most important ways was case study and
illustration.

1. ANALYSIS: The data collected has to process and analysis is done in


accordance with the acceptable relevant scientific method processing of the
data covers editing loading classification.
2. EDITING: Editing is a routine task it is process of examining collected
data especially in survey to detest and animate error editing endures
completeness accuracy and uniformity.
3. CODING: It is process of assign numerical or other symbol to symbol to
answer so that response can be part in a limited number of categories.
4. CLASSIFICATION: The large volume of data collected for a search
study has to be reduced in homogenous gropes for getting a meaningful
relationship. This is known as classification of data. It condense data in
such way that similarities and dissimilarities can easily be apprehended, so
as to facilities comparison. Classification of data collected can be
categorized as by geographical grouping chronological grouping
qualitative and quantitative groupings.
5. TABULATION: It is a process of summarizing row data and displaying
the same in concept from for further analysis. The tabulation can be
simplified in rows and columns; it conserves space and minimizes
exploratory and descriptive statements. Tabulation facilities the process of
comparison. It assists in various statistical computations. It simplifies
complex data, and gives identify to data and reveals pattern.
6. GRAPHIC PRESENTATION: Graphic presentation of statistical data
gives a pictorial effect. It enables one to present data in simple, clear and
effective manner. It shows what is happening and what is likely to take
place just as quickly as the age is capable of working. A graph is a visual
form of presentation. It provides an attractive and impressive view. It also
provides easy comparison of two or more phenomena.

DATA COLLECTION

Collection of data refers to purposive gathering of information relevant to the


subject matter under study and the methods used depend mainly on the nature,
purpose and scope of the enquiry to be undertaken, as well as on the availability
of resources and time.

The data collection can be grouped under two types:-

 Primary data

 Secondary data

 PRIMARY DATA: Primary data are those which are collected for the
first time. They are original in character. They are collected by the
researcher for the first time for her own use.

The source of primary data includes:

1. Direct personal investigation

2. Interview

1. DIRECT PERSONAL INVESTIGATION- This implies the


situation where the researcher goes into the field of study in person for
the collection of required data. Also, the investigation of this nature is
normally confined to a single locality and the information gathered is
capital in nature.

2. INTERVIEW METHOD- Every interview has got its own balance


of revaluation and has withheld information, an interview can be
effective informal verbal and non-verbal conversation initiated for the
specific purpose focus on a certain planned contained areas.
 SECONDARY DATA: Secondary data are those which have already
been collected by others. When it is not possible to collect data in primary
form, the researcher may take the help of secondary data. They are thus
which have already been collected for serving the objectives other then
what the researcher might have in his mind.

The sources of secondary data includes:-

1) Books

2) Websites

3) Journals

5. DATA INTERPRETATION AND ANALYSIS

The purpose of the data analysis and interpretation phase is to transform


the data collected into credible evidence about the development of the
intervention and its performance.

Analysis can help answer some key questions: 


·
 
 Has the program made a difference?

 How big is this difference or change in knowledge, attitudes, or behavior?


This process usually includes the following steps:

 Organizing the data for analysis (data preparation)


 Describing the data
 Interpreting the data (assessing the findings against the adopted
evaluation criteria)
 

Where quantitative data have been collected, statistical analysis can:

 Help measure the degree of change that has taken place

 Allow an assessment to be made about the consistency of data 


Where qualitative data have been collected, interpretation is more
difficult

 Here, it is important to group similar responses into categories and


identify common patterns that can help derive meaning from what may
seem unrelated and diffuse responses.

Questionnaire Responses:

1.According to you which is the best Cadbury Silk Chocolate?


Chocolates
48
50
45
40
35
30 30
25 Chocolates
20
15
10 9 13
5
0
Fruit N Nut
Caramello
Oreo
Bubbly

Interpretation:
From the survey we found out that 48% people thinks Fruit N Nut is the best
Cadbury Silk Chocolate, followed by Oreo at 30%, Bubbly at 13% and
Caramello at 9%.

2. Which chocolate tastes better in Cadbury Silk?


Chocolate
50
45
40
35
30
Chocolate
25
20
15
10
5
0
Fruit N Nut Oreo Caramello Bubbly

Interpretation:

According to the Survey done, people loved the taste of Fruit N Nut more
compared to other chocolates. Oreo was the next best chocolate followed by
Bubbly and Caramello.
3. What is your review about Silk?

Response

50
45
40
35
30 Response

25
20
15
10
5
0
Not Good at All Good Very Good Excellent

Interpretation:

According to the Survey, people really love Cadbury Silk Chocolates as the
respondents responded with very good remark for the Chocolates.
4. In your opinion is Cadbury Chocolate harmful for kids?

Response
11

YES
NO

89

Interpretation:

According to the Survey, people don’t think that Cadbury Chocolates are
harmful for them, as 89% people answered ‘NO’ to the question.
5. Are you aware about the crisis which happened in the Indian operations of
Cadbury?

Response

40 YES
NO

60

Interpretation:

According to the Survey, people know about the crisis which happened in the
Indian operations of Cadbury and they still love the Cadbury Chocolates and
buy them and they don’t think that they are harmful in any way.

This proves that, Cadbury won the trust of the people and it shows in its sales as
Cadbury have 70% market share.

6. Are you satisfied with the new packaging of Cadbury Chocolates?


Response
100
90
80
70
60
Response
50
40
30
20
10
0
YES NO

Interpretation:

As we can see in the above graph, people clearly are satisfied with the new
packaging of Cadbury Chocolates.

7. Did Cadbury handled the challenges faced during the crisis well?
Response

19

YES
NO

81

Interpretation:

People felt that, Cadbury handled the challenges faced during the crisis very
well. As we can see 81% respondents responded ‘YES’.
8. Why do you prefer to eat Cadbury Silk?

Response
70

60

50

40
Response
30

20

10

0
Flavour
Price
Taste
Brand

Interpretation:

According to the Survey, 70 respondents prefer Cadbury Silk because of its


taste, 40 respondents prefer Cadbury Silk because of the Brand Name, 30
respondents prefer because of the varieties in the Cadbury Silk and 11
respondents prefer due to its price.

So to conclude we can say that Taste (Quality) and Brand Name is one the big
reason why consumers prefer Cadbury Silk Chocolates.
9. Do advertisements of Cadbury influence you to purchase the chocolates?

Response

29

YES
NO

87

Interpretation:

We can clearly see that 87% people do get influenced to purchase Cadbury Silk
Chocolates by watching the advertisements.

So it’s pretty evident that right advertisements do have impact on the sales.
10. How many chocolates would you buy in a week?

Response
60

50

40
Response
30

20

10

0
More Than Five Four Three Two None

Interpretation:

According to the Survey, more than 50 respondents buy two Cadbury


Chocolates in a week.
11. According to you, which is the most preferred chocolate after Cadbury?

Response
80

70

60

50
Response
40

30

20

10

0
AMUL NESTLE CAMPCO

Interpretation:

Nestle is the most preferred brand after Cadbury, followed by Amul and
Campco.
12. Do you think sugar free Cadbury Chocolate should be introduced to attract
health conscious people?

Response

21

YES
NO

94

Interpretation:

According to the Survey, people feel that Cadbury should introduce sugar free
chocolates.

Changing environment and customers awareness towards their health have


prompted this response.

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