CONSUMER BEHAVIOUR.

Submitted by

Nikhil. Thomas – 03

Prajakta. Pawar –21

Pritha. Chaterjee – 22

Sainath. Kashikedar – 23

Aniket. Bhonsale – 24

Sharanya. Devanand – 43

Of Joshi-Bedekar College Thane under the guidance of Prof. Rinki Gada faculty of BMM.

ACKNOWLEDGEMENT.

We the students of Joshi-Bedekar College of Arts & Commerce would like to thank our professor Mrs. Rinki Gada for her kind guidance and support in completing the project in the season 2010-2011. We would also like to extend a word of thanks to all the respondents who co-operated us in our

research and giving out their honest opinions.

INDEX

IntroductionChocolate comes from the seeds of the cacao plant, which is native to South America''s tropical rain forest. At least 3000 years ago, the Mesoamericans discovered how to process the beans to release the distinctive chocolate flavor, and drank it as a sacred beverage. Cacao is now grown all over the world, which annually consumes more than a million tons of processed chocolate.

Many chocolate manufacturers have created products from chocolate bars to fudge, hoping to attract more consumers with each creation. Both The Hershey Company and Mars have become the largest manufacturers in the world. Other significant players include Cadbury, Nestlé, Kraft Foods and Lindt.

Food conglomerates Nestlé SA and Kraft Foods both have chocolate brands. Nestlé acquired Rowntree's in 1988 and now market chocolates under their own brand, including Smarties and Kit Kat; Kraft Foods through its 1990 acquisition of Jacobs Suchard, now own Milka and Suchard. In February 2010, Kraft also acquired British-based Cadbury plc, the world's largest

confectionery manufacturer.[57] Cadbury is well known for its Dairy Milk range and Creme Egg; Fry's, Trebor Basset, the fair-trade brand Green & Black's also belong to the group.

Players

CADBURYCadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft Foods and Cadbury creates a global powerhouse in snacks, confectionery and quick meals.

With annual revenues of approximately $50 billion, the combined company is the world's second largest food company, making delicious products for billions of consumers in more than 160 countries. They employ approximately 140,000 people and have operations in more than 70 countries. In India, Cadbury began its operations in 1948 by importing chocolates. After 60 years of existence, it today has five company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). The corporate office is in Mumbai.

Currently, Cadbury India operates in four categories viz. Chocolate Confectionery, Milk Food Drinks, Candy and Gum category. In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years. Some of the key brands in India are Cadbury Dairy Milk, 5 Star, Perk, Éclairs and Celebrations. In the Milk Food drinks segment our main product is Bournvita - the leading Malted Food Drink (MFD) in the country. Similarly in the medicated candy category Halls is

the undisputed leader. They recently entered the gums category with the launch of our worldwide dominant bubble gum brand Bubbaloo. Bubbaloo is sold in 25 countries worldwide.

NESTLENestlé S.A. is the largest nutrition and foods company in the world, founded and headquartered in Vevey, Switzerland. Nestlé originated in a 1905 merger of the Anglo-Swiss Milk Company, which was established in 1866 by brothers George Page and Charles Page, and the Farine Lactée Henri Nestlé Company, which was founded in 1866 by Henri Nestlé. The company grew significantly during the First World War and following the Second World War, eventually expanding its offerings beyond its early condensed milk and infant formula products. Today, the company operates in 86 countries around the world and employs nearly 283,000 individuals.

Nestle has a range of products in chocolates. They are from Nestle milk chocolate, Kit-Kat, Milkybar, Bar-One, Polo, Munch and Eclairs. It even has its own range of beverages like Nescafe, Nestea & Milo.

AMULAmul ("priceless" in Sanskrit). The brand name "Amul," from the Sanskrit "Amoolya," (meaning Precious) was suggested by a quality control expert in Anand.)[1], formed in 1946, is a dairy cooperative in India. It is a brand name managed by an apex cooperative organization, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.8 million milk producers in Gujarat, India.

Amul's product range includes milk powders, milk, butter, ghee, cheese, Masti Dahi, Yoghurt, Buttermilk chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, flavored milk, basundi,

Nutramul brand and others. In January 2006, Amul plans to launch India's first sports drink Stamina, which will be competing with Coca Cola's Powerade and PepsiCo's Gatorade.

In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its product offering in the milk products segment. Other Amul brands are Amul Kool, a low calorie thirst quenching drink; Masti Butter Milk; Kool Cafe, ready to drink coffee and India's first sports drink Stamina.

Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation Marketing Award for 2007.

RulersThe chocolate market is estimated to be around 1500 crores (ACNielson) growing at 18-20% per annum. The chocolate market in India has only three big players, Cadbury (79%), Nestle (14%) and Amul (5%).New brands

Candico India is aiming for 400 locations across malls and multiplexes in the country by 2010.

Cadbury is the market leader with 79% market share. The per capita consumption of chocolate in India is 300 gram compared with 1.9 kilograms in developed markets such as the United Kingdom. Over 70 per cent of the consumption takes place in the urban markets. As per Euro monitor study, Indian candy market is currently valued at around USD 664 million, with about 70%, or USD 461 million, in sugar confectionery and the remaining 30%, or USD 203 million, in chocolate confectionery. Entire Celebrations range market share is 6.5%.

Target audienceEveryone

Youths, kids, Teenagers, Old.

Different products for different age group.

Marketing Strategy & Market PositioningA new product portfolio. Strategy was to identify the market gaps and try and fill them as done in the past. Concentrating on the niche segment such as health chocolates.

Corporate Image advertisement.

Mithai- is getting substituted by chocolates - Convenient packaging and better shelf life.

Sudden spurt in advertisement between July & Sep in festival seasons.

The range and variety of chocolates available in malls seems to be growing day by day, which leads to lot of impulse sales for chocolate companies.

Chocolates which used to be unaffordable, is now considered mid-priced.

Designer chocolates have become status symbols.

Consumers can choose from wide range of chocolates. so many SKUs with almonds, raisins and all sort of nuts. Latest 5 star crunchy and Ulta Perk.

Maximum chocolate advertising was during Raksha Bandhan.

As expected chocolate advertising skewed towards kids channels and regional GEC took the second position

Cadbury India Ltd rules chocolate advertising on television

In past, consumers had negligible inclination for dark chocolates. But now we have seen a change in the Indian palate, which is increasing the base of this sub-segment.

Cadbury India Ltd was way ahead of its peers with 66 per cent share followed by Nestle India Ltd and Parle Products Pvt Ltd.

During January-November 2008 the number of new chocolate brands advertised decreased to seven from 12 during 2007.

Nestle Munch Pop Chocolate led the chart of new chocolate brands advertised on television during January-November 2008.

Amul in 1993 Shifted focus in 1990’s towards other milk products & had competition from multinationals. Market share down to 2-3%.Launch of ‘Chocó zoo’ - chocolates in shapes of motorcycles, aeroplanes, animals and comic characters .Targeted Kids.

Sales Graph / Pie Charts

Chocolate Global market

Kraft/Cadbury Mars Nestle Ferrero0

2

4

6

8

10

12

14

16

18

15.5

14.6

12.8

7.4

Chart Title

Euro monitor

Market share of Amul chocolates.

Perceptual Map

A New line of Chocolates. Introduction of new range of chocolates to suit different targeted segments

Variety

Design – Plain bars, filled, chocolate covered wafers,

Sizes and Packages – wide range to suit key price points and occasions.

The Types

1. Regular sized bar – 2. Magic Pops bar – Crumble3. Fruit Flavored – Hodge Podge4. Dark Chocolate – Genoise

Target Audience

The target audience will be universal. It will be targeted to children, youth, old etc. The different products will be targeted to different audiences as per the products.