Chapter 1 INTRODUCTION
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1.1INTRODUCTION Marketing strategy
Marketing strategy is defined by David Aaker as a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and Achieving a sustainable competitive advantage. Marketing strategy includes all basic and longterm activities in the field of marketing that deal with the analysis of the strategic initial situat situation ion of a compa company ny and the formul formulati ation, on, evalu evaluati ation on and selec selectio tionn of market market-ori -orient ented ed strategies and therefore contributes to the goals of the company and its marketing objectives .
Advantages and Disadvantages of a Marketing Strategy
Developent
n order to develop a marketing strategy, each aspect must be e!amined for both advantages and disadvantages. "uring the process, cost is usually factored into weighing the pros against the cons of a strategy. Although an advantage might be to bring in new customers.
Distri!"tion
f a marketing strategy concerns itself with distribution, e!amining and accessing the cost of different distribution methods will reveal if the strategy should be implemented. #or e!ample, one way to distribute information is through email marketing. Although the advantage is email marketing is relatively ine!pensive, the disadvantage is that because of the high volume of spam junk mail, many nternet service providers have set up elaborate filters to keep out unsolicited emails.
#iral
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1.1INTRODUCTION Marketing strategy
Marketing strategy is defined by David Aaker as a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and Achieving a sustainable competitive advantage. Marketing strategy includes all basic and longterm activities in the field of marketing that deal with the analysis of the strategic initial situat situation ion of a compa company ny and the formul formulati ation, on, evalu evaluati ation on and selec selectio tionn of market market-ori -orient ented ed strategies and therefore contributes to the goals of the company and its marketing objectives .
Advantages and Disadvantages of a Marketing Strategy
Developent
n order to develop a marketing strategy, each aspect must be e!amined for both advantages and disadvantages. "uring the process, cost is usually factored into weighing the pros against the cons of a strategy. Although an advantage might be to bring in new customers.
Distri!"tion
f a marketing strategy concerns itself with distribution, e!amining and accessing the cost of different distribution methods will reveal if the strategy should be implemented. #or e!ample, one way to distribute information is through email marketing. Although the advantage is email marketing is relatively ine!pensive, the disadvantage is that because of the high volume of spam junk mail, many nternet service providers have set up elaborate filters to keep out unsolicited emails.
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%ne marketing strategy that has gained popularity in the new media world is &viral marketing.& n viral marketing, a clever or emotional campaign begins to spread 'uickly through the nternet. (his is usually accomplished through word-of-mouth means, as well as through social networks such as #acebook and (witter. (witter. (he advantage to this marketing strategy is that it gets a widespread awareness of the product or service, but the disadvantage is that there is no control over how the material spreads.
De$isions
n deciding on a marketing strategy to use )or a combination*, it is necessary to e!amine the advantages of each strategy and the disadvantages. n many cases, if there is a greater advantage over a disadvantage to a strategy, it could probably be implemented. +owever, it is also a matter of personal choice in some cases. #or e!ample, although an effective marketing strategy for a product might include ( advertising with programs that have high audience ratings, a disadvantage to that could entail sponsoring a program that some might find fi nd offensive or in 'uestionable taste, which might lead to a boycott of the product or service. "eciding whether to alienate one group over enticing another group would need to be determined by the team behind the marketing strategy and the company itself.
1.1.% &' Step Strategi$ Marketing (ro$ess
Mission
(he first step in strategic marketing is to articulate the reason why the enterprise e!ists and how it can benefit target consumers over the long term. n particular, this mission statement is intended to anticipate the future and describe an ongoing role for the organizations product, service or e!pertise. #or e!ample, the mission of an airline might be to provide continuing innovation in global transportation. A hospital could state a mission to take the lead in improving public health and education.
Sit"ation Analysis
%rganizations conduct a situation analysis, also known as a /0%(, to evaluate and prioritize their strengths, weaknesses, opportunities and threats. (his second step in the strategic marketing process helps managers understand the resources they can build on and the challenges they face. /trengths and weaknesses are internal factors, under the firms control. #or e!ample, a good image in the fashion press would be a key strength for a dress manufacturer, while a poor relationship with clothing retailers would be a weakness. %pportunities and threats arise from the e!ternal environment, like a strong economy or new payroll ta!.
O!)e$tives
(he third step in strategic marketing is to set marketing objectives. (hese are clear, measurable goals that give decision makers a basis for making choices and assessing progress. %bjectives are typically e!pressed in terms of one or more 'uantitative targets like revenue, profit, sales or market share. mportantly, each objective must be achievable within a fi!ed period of time. #or e!ample, aiming for a five-percent increase in profits might be realistic within a year, but probably not within one 'uarter.
Strategy and *val"ation
(he fourth step in strategic marketing is strategy development. (his involves selecting a target market, a distinct group of consumers who are highly likely to buy the firms product. lanners 2
must also choose implementation tactics, specifically, effective ways to use the marketing mi! tools of product, promotion, price and distribution to reach and influence prospective buyers. (he fifth step, evaluation, means specifying how, when and by whom these tactics are to be monitored and assessed over time .
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1.1.+ The , (s of Marketing %nce youve developed your marketing strategy, there is a &/even #ormula& you should use to continually evaluate and reevaluate your business activities. (hese seven are5 product, price, promotion, place, packaging, positioning and people. As products, markets, customers and needs change rapidly, you must continually revisit these seven s to make sure youre on track and achieving the ma!imum results possible for you in todays marketplace . 1. (rod"$t
(o begin with, develop the habit of looking at your product as though you were an outside marketing consultant brought in to help your company decide whether or not its in the right business at this time. Ask critical 'uestions such as, &s your current product or service, or mi! of products and services, appropriate and suitable for the market and the customers of today6& 0henever youre having difficulty selling as much of your products or services as youd like, you need to develop the habit of assessing your business honestly and asking, &Are these the right products or services for our customers today6& s there any product or service youre offering today that, knowing what you now know, you would not bring out again today6 7ompared to your competitors, is your product or service superior in some significant way to anything else available6 f so, what is it6 f not, could you develop an area of superiority6 /hould you be offering this product or service at all in the current marketplace6 %. (ri$es
(he second in the formula is price. "evelop the habit of continually e!amining and ree!amining the prices of the products and services you sell to make sure theyre still appropriate to the realities of the current market. /ometimes you need to lower your prices. At other times, it may be appropriate to raise your prices. Many companies have found that the profitability of certain products or services doesnt justify the amount of effort and resources that go into producing them. 8y raising their prices, they may lose a percentage of their
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customers, but the remaining percentage generates a profit on every sale. 7ould this be appropriate for you6 /ometimes you need to change your terms and conditions of sale. /ometimes, by spreading your price over a series of months or years, you can sell far more than you are today, and the interest you can charge will more than make up for the delay in cash receipts. /ometimes you can combine products and services together with special offers and special promotions. /ometimes you can include free additional items that cost you very little to produce but make your prices appear far more attractive to your customers. n business, as in nature, whenever you e!perience resistance or frustration in any part of your sales or marketing activities, be open to revisiting that area. 8e open to the possibility that your current pricing structure is not ideal for the current market. 8e open to the need to revise your prices, if necessary, to remain competitive, to survive and thrive in a fast-changing marketplace. +. (rootion
(he third habit in marketing and sales is to think in terms of promotion all the time. romotion includes all the ways you tell your customers about your products or services and how you then market and sell to them. /mall changes in the way you promote and sell your products can lead to dramatic changes in your results. :ven small changes in your advertising can lead immediately to higher sales. :!perienced copywriters can often increase the response rate from advertising by 3;; percent by simply changing the headline on an advertisement.
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-. (la$e
(he fourth in the marketing mi! is the place where your product or service is actually sold. "evelop the habit of reviewing and reflecting upon the e!act location where the customer meets the salesperson. /ometimes a change in place can lead to a rapid increase in sales. >ou can sell your product in many different places. /ome companies use direct selling, sending their salespeople out to personally meet and talk with the prospect. /ome sell by telemarketing. /ome sell through catalogs or mail order. /ome sell at trade shows or in retail establishments. /ome sell in joint ventures with other similar products or services. /ome companies use manufacturers representatives or distributors. Many companies use a combination of one or more of these methods. n each case, the entrepreneur must make the right choice about the very best location or place for the customer to receive essential buying information on the product or service needed to make a buying decision. 0hat is yours6 n what way should you change it6 0here else could you offer your products or services6 &. (a$kaging
(he fifth element in the marketing mi! is the packaging. "evelop the habit of standing back and looking at every visual element in the packaging of your product or service through the eyes of a critical prospect. ?emember, people forms their first impression about you within the first ; seconds of seeing you or some element of your company. /mall improvements in the packaging or e!ternal appearance of your product or service can often lead to completely different reactions from your customers. 0ith regard to the packaging of your company, your product or service, you should think in terms of everything that the customer sees from the first moment of contact with your company all the way through the purchasing process. ackaging refers to the way your product or service appears from the outside. ackaging also refers to your people and how they dress and groom. t refers to your offices, your waiting rooms, your brochures, your correspondence and every single visual element about your
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company. :verything counts. :verything helps or hurts. :verything affects your customers confidence about dealing with you. 0hen 8M started under the guidance of (homas . 0atson, /r., he very early concluded that fully @@ percent of the visual contact a customer would have with his company, at least initially, would be represented by 8M salespeople. 8ecause 8M was selling relatively sophisticated high-tech e'uipment, 0atson knew customers would have to have a high level of confidence in the credibility of the salesperson. +e therefore instituted a dress and grooming code that became an infle!ible set of rules and regulations within 8M. As a result, every salesperson was re'uired to look like a professional in every respect. :very element of their clothing-including dark suits, dark ties, white shirts, conservative hairstyles, shined shoes, clean fingernails-and every other feature gave off the message of professionalism and competence. %ne of the highest compliments a person could receive was, &>ou look like someone from 8M.& . (ositioning
(he ne!t is positioning. >ou should develop the habit of thinking continually about how you are positioned in the hearts and minds of your customers. +ow do people think and talk about you when youre not present6 +ow do people think and talk about your company6 0hat positioning do you have in your market, in terms of the specific words people use when they describe you and your offerings to others6 n the famous book by Al ?eis and ack (rout, Positioning , the authors point out that how you are seen and thought about by your customers is the critical determinant of your success in a competitive marketplace. Attribution theory says that most customers think of you in terms of a single attribute, either positive or negative. /ometimes its &service.& /ometimes its &e!cellence.& /ometimes its &'uality engineering,& as with Mercedes 8enz. /ometimes its &the ultimate driving machine,& as with 8M0. n every case, how deeply entrenched that attribute is in the minds of your customers and prospective customers determines how readily theyll buy your product or service and how much theyll pay. "evelop the habit of thinking about how you could improve your positioning. 8egin by determining the position youd like to have. f you could create the ideal impression in the 1;
hearts and minds of your customers, what would it be6 0hat would you have to do in every customer interaction to get your customers to think and talk about in that specific way6 0hat changes do you need to make in the way interact with customers today in order to be seen as the very best choice for your customers of tomorrow6 ,. (eople
(he final of the marketing mi! is people. "evelop the habit of thinking in terms of the people inside and outside of your business who are responsible for every element of your sales and marketing strategy and activities. ts amazing how many entrepreneurs and businesspeople will work e!tremely hard to think through every element of the marketing strategy and the marketing mi!, and then pay little attention to the fact that every single decision and policy has to be carried out by a specific person, in a specific way. >our ability to select, recruit, hire and retain the proper people, with the skills and abilities to do the job you need to have done, is more important than everything else put together. n his best-selling book, Good to Great , im 7ollins discovered the most important factor applied by the best companies was that they first of all &got the right people on the bus, and the wrong people off the bus.& %nce these companies had hired the right people, the second step was to &get the right people in the right seats on the bus.& (o be successful in business, you must develop the habit of thinking in terms of e!actly who is going to carry out each task and responsibility. n many cases, its not possible to move forward until you can attract and put the right person into the right position. Many of the best business plans ever developed sit on shelves today because the Bpeople who created themC could not find the key people who could e!ecute those plans.
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1.% O/0*CTI#* O T2* STUD3
1. (o analyze the consumer perception of 7adbury 7hocolates . $. (o gauge customer e!pectations from 7adbury. . (o analyse the product, pricing, availability and advertising of 7adbury 7hocolates. 2. (o understand consumers outlook towards 7adbury in terms of taste D 'uality. 3. (o know the stg. Adopted by the company for marketing 4. (o know about the taste and preferences of the customers 9. (o know the fre'uency of visit of the customers
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1.+ 4IT*RATUR* R*#I*5
Introd"$tion
8usiness organizations are constantly seeking ways to enhance their performances in order to compete actively and aggressively in the market. rofit-seeking organizations have long recognized the importance of creating value in the products and services they offer to the customers, all in the common objective to deliver commercial goods efficiently in order to keep the current customer-base satisfied. Aside from inculcating loyalty among the members of the clients and customers of a business organization, companies are likewise aware of the need to widen and e!tend the reach of the companyEs products and services to new markets in order to increase its share on clients and customers. /trategies, plans and techni'ues in the areas of operations, communication and marketing, sales, supply chain, logistics, research and development, performance measurements as well as social and corporate obligations and responsibility are continuously improved all for the benefit of the target market. %nce companies become successful in these organizational and managerial areas, sustained economic development is envisioned. (his literature review aims to present a criti'ue of e!isting, published literatures that analyze the relationship between marketing strategies and the firmEs performance. +istorically, marketing strategy formulation is viewed as an antecedent to performance outcomes. t is the modus operandi that allows an organization to concentrate its limited resources on the best available opportunities to increase sales and achieve a sustainable competitive advantage. Marketing strategy
+as been a salient focus of academic in'uiry since the 1@=;s. (here are numerous definitions of marketing strategy in the literature and such definitions reflect different perspectives .A traditional definition of marketing strategyis a plan for pursuing the firmEs objectives or how the company is going to obtain its marketing goalswith a specific market segment , while 8rodrechtova e!plains that marketing strategy is a roadmap of how a firm assigns its resource and relates to its environment and achieves corporate objective in order to generate economic value and keep the firm ahead of its competitors. n laymen terms it is to determine the nature, strength, direction, and interaction between the marketing mi!-elements and then
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environmental factors in a particular situation. According to
%n the other hand, is a well-established measure in marketing literature. 0e measure it through sales volume, profitability and market share for the current period )current firm performance*, and perceived satisfaction with these measures when considering the previous year. )ast firm performance* #our papers that are discussed in this review, discuss different strategies and their effect on a firms performance. *'arketing Strategy and firm’s perforan$e
5-As of 1 "ecember $;11, $.$49 billion people worldwide had access to the internet according to t has assumed an important channel for marketing and distribution of products and services. (hat is, primarily, due to the cost effectiveness of the internet as well as convenience for customers when it comes to ordering and browsing. A company can also reach out to a broader customer base at a relatively low cost. (he first paper, The Relationship !et7een *'arketing Strategy and (erforan$e8 A Con$ept"al rae7ork in a 5e! Conte9t
roposes a conceptual framework that links the five factors that are internal forces, the e!ternal forces, past web and firm performances, current web )including firm performance*. /ome authors appear in different years ) for e!ample, ain*, t is understand that they have added new comments or redefined the term after the years. (he table and the definitions have been ordered by year of publication
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Dr"$ker 1:,+ G/trategic marketing as seen
as a process consisting of5 analyzing
environmental, market competitive and business factors affecting the corporation and its business units, dentifying market opportunities and threats and forecasting future trends in business areas of interest for the enterprise, and participating in setting objectives and formulating 7orporate and business unit strategies. /electing market target strategies for the productmarkets in each business unit, establishing marketing objectives as well as developing , mplementing and managing the marketing program positioning strategies in order to meet market target needsH. 2art ; Stapleton 1:,, & a
statement in very general terms of how the marketing objective is
to be achieved, e.g. ac'uiring a competitive company, by price reductions, by product improvement, or by intensive advertising. (he strategy becomes the basis of the marketing plan& 4a!in 1:,, G(he role of strategic marketing is
to lead the firm towards attractive economic
opportunities, that is, opportunities that are adapted to its resources and know how and offer a otential for growth and profitabilityH. /aker 1:<- Gthe
establishment of the goal or purpose of a strategic business unit and the
means by which it is to be achieved trough management of the marketing function& Cravens 1:<
Gunderstanding the strategic situation confronting an organization is an
essential starting point in developing a marketing strategyH 2aper ;/a"gh 1::= GAlthough definitions for
the term vary, we define marketing
8augh strategy as a consistent, appropriate and feasible set of principles through which a particular company hopes to achieve its long-run customer and profit objectives in a articular competitive environmentH. Araario ; 4a!in 1::1 Galthough marketing has basically an strategic conception of
(he selling activity, we use to distinguish between strategic marketing and operational marketing, depending on long term or short term objectives. /trategic marketing starts in
thoughts about current situation of the company and situational analysis and possible evolution of the markets and the environment, with the goal of detecting opportunities which can establish objectivesH
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S$hnaars 1::1 G(here is no unified definition upon which marketers agree. nstead, there are
nearly as many definitions of it as there are uses of the term. 7learly, marketing strategy is a commonly used term, but no one is really sure what it meansH. /radley 1::1 &
the strategic marketing process, therefore implies deciding the marketing
strategy based on a set of objectives, target market segments, positioning and policies&
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C2A(T*R'% COM(AN3 (ROI4*
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%.1 INTRODUCTION (odayEs scenario in the chocolate industry is a highly competitive one. n the wake of liberalization as the economy opens up more and more international brands of chocolate are entering into the ndian Market giving to are coming the competition to capture the ndian Market is hotling up. Ione are the days when the chocolates were considered to be a lu!ury item only to be consumed by the rich people. (he chocolates appeal to all the classes irrespective of age, se! or status. Jow the chocolates are positioned as a light meal to be consumed between heavy meals. /ome of the e!amples of this type of positioning are >(erk6 and >?it ?at6 with chocolate companies having intense competition and with reducing shelf space only those companies who market their chocolates as well as advertise and package them will have a chance to survive in the market. (he studies have shown that most of the time chocolate buying is an impulse action i.e. when one sees the chocolates on the shelf of the shop so, it is very important for the manufacturer to pack them attractively. Jow a day chocolate are positioned as a thing which can be eaten by each and everyone. 0e had to gauge the strength and weaknesses of establish players in the chocolate market. /o, we regard top players like K7adburyEsE, KJestleE, KAmulE and some #oreign 7hocolates. %ut there in the chocolate market Cad!"ry has the market share of about 91F followed by Jestle at about $F followed by Amul 2F D about $F by rest small players. (here were various reasons due to which there was such a large gap between the market leader and the rest such as5 7adburyEs main strength is fast reaction is every time the competitors launch a product they immediately launch a rival product with far lower prices like eg. 0hen Nestle launched @?it' ?at 7adburyEs
soon followed with GerkH with far lower prices. /o as to retain its market
share in which they have succeeded. (he other strength, which we feel, is distribution network. 7adburyEs has a far better distribution network than Jestle and Amul. ts chocolates can be found in every nook and corner of the country where as the competitors have not been able to do so. 1=
Another interesting strength, which we found out during the market research, was the packaging strategy, we found out that all. 8ig players especially 7adburyEs keep on changing the packaging of its chocolates after every si! months. Most of people decide to buy the chocolate only if they find the packaging attractive. 8ut there are some weaknesses also attached with the chocolate industry like we all know that chocolate as such is a perishable commodity, so, if there is no proper maintenance the chocolate can easily perish due to which the company can run into severe losses. As the ndian company economy is coming out of age and per capita income as well as spending is increasing, there is a lot of opportunity in the chocolate market. (he per person consumption of chocolates of ndian is very low as well as there are very few, established players in the market.
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%.% 2ISTOR3 O CAD/UR3 Cad!"ry has !een synonyo"s 7ith $ho$olate sin$e 1<%- , when ohn 7adbury opened his
first shop, establishing a flourishing dynasty that today provides the world with many of its favourite brands of chocolate. The Cad!"ry story is a fas$inating st"dy of
industrial and social development, covering
well over a century and a half. t shows how a small family business developed into an international company combining the most sophisticated technology with the highest standards of 'uality, technical skills and innovation. A one'an !"sinessB opened in 1<%- !y a yo"ng "aker ,
ohn 7adbury, in 8ull /treet
8irmingham, was to be the foundation of 7adbury
confectionery division
of 7adbury /chweppes plc, a major force in the confectionery and soft drinks international market. Luality has been the focus of the 7adbury business from the very beginning, as generations have worked to produce chocolate with the taste, smoothness and snap characteristic of 7adbury chocolate.
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%.+ OUNDIN O T2* CAD/UR3 /USIN*SS
The fo"nding of the Cad!"ry !"siness dates
back to 1=1 when ohn 7adbury first made
cocoa products on a factory scale in an old malt house in 7rooked
canal spur linking the factory via the 8irmingham Javigation 7anal to the major ports of 8ritain. /"siness $ontin"ed at the /ridge Street site for
$ years and by 1=9= the workforce had
e!panded to $;;, so more space was needed. (his heralded the move to 8ourneville and the building of what is now one of the largest chocolate factories in the world. 0ohn Cad!"ry retired in 1<1 handing
over the business to his eldest sons ?ichard and
Ieorge. t is to their leadership that the success of the enterprise is owed as the company prospered.
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%.- COM(AN3 INORMATION
#ifty years ago, the real taste of chocolate as we know it today, landed on ndian shores. An event that carried forward the entrepreneurship and vision born as far back as 1=$2, when ohn 7adbury set up shop in 8irmingham )N* to sell among other things - his own cocoa concoction. #rom these modest beginnings emerged 7adbury /chweppes - that is today the leading manufacturer of confectionery and beverages in the nited Ningdom. A company that has its presence in over $;; countries worldwide and has made the name 7adbury synonymous with cocoa products in countries across the planet. (his is the brand that came to ndia in 1@29 - to a nation that was in its infancy, a market that was ready for the world and a people that were open to new ideas, new products. 7adbury was originally incorporated as a wholly owned subsidiary of 7adbury /chweppes %verseas |
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ITS 4*ADIN 4O/A4 /RANDS AR*8 /everages ' 7rush, "r epper, And ndian (onic 0ater, 7anada "ry, 7rystal
Confe$tioneryE $ho$olate ' "airy
Milk, Mr. 8ig, (imeout, (wirl, erk, /our atch, +azel
Jut, (emptations, 7elebration, 3 /tar, "ouble deck, 8yte, #ruits and Juts, /ilk, 7rackle and 7hocobi!.
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(4ANT 4OCATIONS8
7adburyEs manufacturing operations started in Mumbai in 1@24, which was subse'uently transferred to (hane. n 1@42, nduri #arm at (alegaon, near une was set up with a view to promote modern methods as well as improve milk yield. n 1@=1-=$, a new chocolate manufacturing unit was set up at the same location in (alegaon. (he company, way back in 1@42, pioneered cocoa farming in ndia to reduce dependence on imported cocoa beans. (he parent company provided cocoa seeds and clonal materials free of cost for the first = years of operations. 7ocoa farming is done in Narnataka, Nerala and (amil Jadu. n 1@99, the company also took steps to promote higher production of milk by setting up a subsidiary nduri #arms |
/USIN*SS8
7adbury dominates the ndian chocolate market with a 43F market share. 8esides, it has a 1;F market share in the organized sugar confectionery market and a $3F market share in milkP malted foods segment. Changing (rod"$t Mi9.
7ontribution to
7ontribution to
turnover %==
turnover %==,
7hocolate
3@F
43F
/ugar 7onfectionery
@F
1;F
#ood "rinks
$F
$3F
Cho$olates and $onfe$tionery prod"$ts F,&G of t"rnoverH
#or more than five decades now, 7adbury has enjoyed leadership position in the ndian chocolate market to the e!tent that 7adburyE has become a generic name for chocolate products. 7adbury has leading brands in all the segments viz bars )"airy Milk, 7rackle,
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(emptations*, count lines )3 star, Milk (reat*, panned confectionery )Iems* and wafer chocolates )erk*, Qclairs )7adburys Oclairs*, toffees ):nglish (offee*. "uring $;;9, 7adburyEs chocolate sales )43F turnover* registered a @F value growth, aided primarily by growth in the flagship brand "airy Milk. "airy Milk contributes an estimated ;F to 7adburyEs sales. Iems and #ive /tar were relaunched during the year to stem their growth. erk registered a growth during $;;9 despite launch of new variants. Jew brand initiatives included the launch of (emptations in the premium segment and 7hocki a low priced chocolate confectionery targeted at children. ?ecently 7adbury has launched 8ytes. 7adbury entered the hard-boiled sugar confectionery market with the launch of Ioogly in 1@@4. n 1@@9, the company launched a coffee based sugar confectionery product Mocka. 7adbury has a 2F market share in the confectionery segment, largely contributed by Oclairs. %ther confectionery brands such as Iollum, #rutus, Jice 7ream, etc launched in the last two years did not receive a good market response and the company has decided to minimize focus on those brands. Oclairs was relaunched with uni'ue packaging in cartons during $;;9.?ecent global ac'uisition of Adams, brands like +alls, 7lorets D many other international brands are already a part of 7adbury.
OOD DRIN?S F%&G O TURNO#*RH
7adburyEs 8ournvita is the leading brand in the brown drinks segment of milkP malted food products. %verall share in the malted food drinks market is estimated at 13F. 8rown drinks earlier positioned as taste enhancers were losing market to white drinks during the last few years. 7adbury relaunched 8ournvita with a new formulation and advertising campaign positioning it on the health benefit platform to compete with white drinks. (he brand was relaunched in the /outh R the largest food drink market in the country, during $;;9. 8ournvita sales registered a 1$F growth in value terms in $;;9 to ?s, contributing $2F to total turnover. 7adburyEs other products include 7adburyEs "rinking 7hocolate and 7adburyEs 7ocoa powder. (hese account for only 1F of 7adburyEs turnover. ?ecently 7adbury has launched "elite.
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DISTRI/UTION
7adburys distribution network encompasses $1;; distributors and 3,3;,;;; retailers. (he company has a total consumer base of over 43mn. 8esides use of ( to improve distribution logistics, 7adbury is also attempting to improve distribution 'uality. (o address the issues of product stability, it has installed isi coolers at several outlets. (his helps in maintaining consumption in summer, when sales usually dip due to the fact that the heat affects product 'uality and thereby off take. STRAT*3
ncreasing the consumer base by focusing on the twin proposition of affordability and availability is being followed to drive future growth. /mall affordable priced packs have been launched, which have helped improve penetration. Also advertising for chocolates is aimed at changing consumer perception and eating habits by creating new reasons for consumption. *ARNINS S*NSITI#IT3 ACTORS Co$oa !ean pri$es8 "omestic
as well as international prices of key raw material - cocoas
have significant impact on margins. *9$ise d"ties8 7hanges in e!cise levied on malt and chocolate influences end product prices
and thereby volume growth as well as margins. 7hanges in custom duties and foreign e!change fluctuations, as $;F of raw material is imported. 7ompetition from MJ7Es like Jestle as well as imported brands. ncreasing competition puts pressure on advertisement budget and margins. +owever on the positive side, it helps in e!panding the market.
Is $ho$olate a ood enhan$er n early uly $;;9, 7adbury "airy Milk carried out a pilot trial of the ?eal 7hocolate, ?eal #eelings /cientific /tudy of 1,;;; people, which produced some fascinating results. (he study showed that on any given day, people who had eaten 7adbury "airy Milk that day were significantly happier than those who had not. (he findings also prove that the more routinely you eat chocolate, the happier you feel5 those who ate chocolate every day were $4
happier than everyone else, and significantly happier than those who ate no chocolate at all. (hose who ate chocolate at some time today were significantly more likely to be happy than those whose last bite of chocolate was yesterday or before. articipants in the weeklong study were each assigned to one of three study groups. 4@ per cent of the pilot study group A, who had to eat at least one 2@g bar of 7adbury "airy Milk each day, said they felt happy when asked to describe their mood. 8y contrast only 21 per cent of group 7, who were not allowed to eat any chocolate at all, said they felt happy. eople in-group 8 could choose whether or not to eat chocolate but even so only 42 per cent of them reported that they were happy. (he study dispels several popularly held beliefs about chocolate. •
7ontrary to popular opinion, chocolates mood enhancing 'ualities do not stem from any psychoactive ingredients. t is the sensory 'ualities of chocolate bars - the taste, te!ture and smell - as well as emotional associations built up over time, which deliver the emotional benefits.
•
(he mood-enhancing effects of chocolate last at least several hours, which is a lot longer than most scientists have thought up to now.
•
Again, contrary to e!pectations, men and women did not differ significantly in the effect that chocolate had on their mood. "epriving women of chocolate did have a slightly greater negative effect than depriving men of chocolate, but this difference was not statistically significant.
2o7 7as the st"dy designed (he study has been designed by "r. "ylan :vans a psychologist at the niversity of 8ath and author of the book :motion - the science of sentiment )%!ford niversity ress, $;;9*. +e e!plains &0e started with the hypothesis that chocolate has a more significant influence on peoples mood or emotional state than other foods, based on a popular mythology of chocoholics, chocolate highs and chocolate cravings. 0e asked a neuroscientist, "r. Adrian %wen, of the M?7 7ognition and 8rain /ciences nit, 7ambridge, to survey the relevant
$9
scientific literature. (he conclusion of this report is that, so far, neuroscientists have been unable to e!plain fully chocolates apparent mood-enhancing properties. "r. "ylan :vans continues5 &8rain imaging techni'ues such as magnetic resonance imaging )M?* show that chocolate has powerful sensory 'ualities - taste, smell and te!ture - which activate pleasure centres in the brain. (hese effects can be found to some degree in other foods, when a sensation of pleasantness is e!perienced. (he intense effects of chocolate on these parts of the brain, however, is most similar to the effects of listening to pleasant music and receiving a surprise reward of money - which also seem to share chocolates ability to enhance our mood. (he particular sensory 'ualities of chocolate, therefore, seem to activate the same parts of the brain associated with other mood enhancing e!periences. 0e wanted to investigate in more detail chocolates mood enhancing 'uality and its emotional significance. (he simplest way to do this is to ask people.&
2I*ARAC23 O CAD/UR3 INDIA 4TD. $=
7hairperson 7hairman
ice chairman
Managing director
"irector
7ompany secretary D Mgr. #inancial planning
Ieneral Manager
$@
SOM* CAD/UR3JS (RODUCT T*M(TATIONS
7adbury uses blue background with golden inscription, which adds on to the visual appeal, the blue is then margined by a contrasting golden wave line and again a contrasting blue (emptation, which then draws down to the color of the flavor being represented as well as chocolate flakes and the flavor, is displayed. (he basic division has been $;F 7adbury brand visibility, $;F (emptation visibility and the rest for the flavor and impulse appeal. (he back of the packing uses the space for content description, trademarks and standards pricing dates etc. (he chocolate is wrapped in foil to protect it from moisture and minimize temperature fluctuation effects.
CAD/UR3 DAIR3 MI4?
0hen 7adbury "airy Milk chocolate was first introduced in the early 1@;;s it made an immediate impact 'uickly becoming the market leader. (he success story has continued. t is still the top selling chocolate brand in the country and the 7adbury Mega 8rands broad family of products today has an international retail value approaching /S1billion. As an international brand 7adbury "airy Milk carries the same distinctive image all over the world. 0herever you buy a bar of 7adbury "airy Milk the pack design will be e!actly the same, only the language will be different. (he famous slogan Kglass and a half of f"ll $rea ilk in every half po"ndK with the picture of milk pouring into the chocolate bar, is one of the all-time greats of 8ritish advertising. (he first two additions to the 7adbury Mega brand family were #ruit D Jut in 1@$= followed by 0hole Jut in 1@. (he family has since been e!tended and there are now 1; varieties of ;
7adbury "airy Milk bars in the range. >ou can see more details by clicking on the links at the left hand side of this page. n addition to 7adbury "airy Milk, #ruit D Jut and 0hole Jut are two of the best loved varieties of the 7adbury Mega-brand. Australia, for e!ample, offers $ varieties including /nack, 7aramello and 8reakaway. 0e can enjoy "airy Milk in many different ways including as miniatures, snack size multiple packs, treat size in bags, pocket packs, standard bars, 1$3g, $;;g or 2;;g bars )for sharing, of courseT*, or as giant 1kg or 1.$3kg bars. 7adbury "airy Milk is enjoyed in over ; countries.
/3T*S
8ytes is the first foray of 7adbury into the rapidly growing 8agged /nack 7ategory of /nacking.
*MS
(he saying &Iood things come in small packets& has been proven right many a times and it couldnt have been truer for the pretty chocolate buttons called Iems. 0ho can forget the uni'ue, brightly colored chocolate buttons with crispy shells, encased in a pack thats as colorful as the product itself6 nrivalled in all these years, 7adbury Iems has captured every kids fantasy for almost 2 decades and the adults are not too far behind.
TAR*T AUDI*NC*
(eenagers 1-1@ yrs in the /:7 AP8P7 7lasses and 7hildren =-1$ yrs old in the /:7 AP8P7 7lass
1
(RODUCT O*RIN
(he basic product offering is baked wafers that are filled with 7adbury 7hococream. (he manufacturing process involves making of the wafer, preparation of rolls of the wafer filled with the cream, and then making pillows from these rolls. (he wafers thus formed are filled into polybags and in order to keep the product fresh and crisp, the bags are flushed with nitrogen gas. (here are $ /Ns being marketed today - a ?s. 3 /N which weighs 1=gm and a ?s. 1; /N which weighs 2;gm. 8enchmarked to other bagged snacks in the market, 8ytes provides the largest weight, and is unmatched in its uni'ue chocolate taste.
$
T2* CAD/UR3 AMI43 O /RANDS T2* UM/R*44A /RAND
n the chocolate market the 7adbury brand has in e!cess of fifty per cent market share, selling 1; of the top $; selling chocolate singles. /ingles are individual bars sold over the counter. ?esearch data shows that the 7adbury !rand eL"ity is highly differentiated from other brands with consumers. 8rand e'uity is the value consumer loyalty brings to a brand, and reflects the likelihood that a consumer will repeat purchase. (his is a major source of competitive advantage. (he 7adbury umbrella brand has endured in a highly competitive market, and has established the link, in the mind of the consumer, that 7adbury e'uals chocolate. An "!rella !rand is a parent brand that appears on a number of products that may each have separate brand images. (he 7adbury umbrella brand image consists of four icons namely the 7adbury script, the glass and a half, dark purple color and the swirling chocolate image. (hese elements create a visual identity for 7adbury that communicates the ultimate in chocolate pleasure. 7onsumer research is conducted regularly so managers can learn more about how the market perceives the brand. (his research has confirmed that the swirling chocolate and Kglass and a halfE are powerful images. 8oth clearly portray a desire for chocolate while the half full glass suggests core values of goodness and 'uality. T2* (RODUCT /RAND
(he 7adbury brand has a profound impact on individual product brands. 8rands have individual personalities aimed at specific target arkets for specific needs e.g. (imeout, for e!ample, is an ideal snack to have with a cup of tea. (hese brands derive benefit from the 7adbury parentage, including 'uality and taste credentials. (o ensure the success of product brands every aspect of the parent brand is focused on. A #lake, 7runchie or (imeout are clearly different and are manufactured to appeal to a variety of consumer segments. +owever, the strength of the umbrella brand supports the brand value of each chocolate bar. 7onsumers know they can trust a chocolate bar that carries 7adbury branding. (he relationship between 7adbury and individual brands is symbiotic with some brands benefiting more from the 7adbury relationship, i.e. pure chocolate brands such as "airy Milk. %ther brands have a
more distant relationship, relationship, as the consumer consumer motivation motivation to purchase purchase is ingredien ingredients ts other than chocolate, e.g. 7runchie.
/imilarly issues such as specific advertising or product 'uality of a packet of 7adbury biscuits or a single 7rUme :gg will, in turn, impact on the perception of the parent brand. /imilarly the umbrella brand has a strong brand value and a reputation that must be supported by its individual brands. brands.
2
ID*NTI3IN /RAND #A4U*S 0e are all consciously and unconsciously affected by brands in our daily lives. 0hen we go to purchase a pair of training shoes we rarely make a purely practical decision. (here are numerous branded and non-branded options available. #or many people, a pair of trainers must sport a brand logo because that will communicate certain values to other people. (he confectionery market elicits similar conscious and unconscious feelings of passion, loyalty and enthusiasm. #or many people, chocolate is 7adbury, and no other brand will do. (his consumer loyalty is critical because of the value of the chocolate confectionery market and because, in all markets, a small number of consumers account for a large proportion of sales.
3
CONSUM(TION ; CONSUM*R
4I*ST34* C2OCO4AT* CONSUM(TION
7adburyEs are markets are currently N, reland, Australia and Jew Vealand. (he 7adbury brand is very well known in these markets and consumers
have
established patterns of chocolate consumption. reland has
one
of
the the larg larges estt cons consum umpt ptio ionn rate ratess in the the wo worl rldd alon alongg with with /witzerland. n reland alone, the average person eats =kg of chocolate and 4kg of sweets each year. n key areas such as
these,
the 7adbury brand has secured significant brand status.
n reland, 7adbury has identified three key consumer segments of KimpulseE, Ktake homeE and KgiftE. KgiftE. (hese (hese segments segments reflect reflect consume consumersE rsE decision-mak decision-making ing processes processes.. #or e!ample, e!ample, impulse purchases are typically products bought for immediate consumption, e.g. single bars. (ake +ome confectionery is generally bought in a supermarket and is most often driven by a specific need. A specific need or usage can be an occasion, e.g. K need something for the lunchbo!E. +ere consumers make more rational decisions, e.g. brand influence, pricePvalue relationship. (hese areas are further subdivided, for e!ample the KgiftE sector comprises special occasions )birthdays, 7hristmas, etc.* and token or spontaneous gifts. f marketers successfully identify and isolate consumer segments in this way, it becomes easier to target products and advertising advertising in a more meaningful meaningful way to increase increase consumption consumption
4
N*5 (RODUCTS R*4*CTIN CONSUM*R 4I*ST34*S
Ne7 prod"$t developent has
played a key role in developing markets as brands strive to
offer something to a consumer that is truly different. 0e take a crumbly flake te!ture or honeycomb for granted but, when introduced, they were remarkably innovative. 7hanging lifestyle patternsW eating on the go, and impulse snacking has and continues to play a pivotal role in the confectionery market. 7ontinued snacking or KgrazingE has replaced traditional mealtimes for many people.
(he 7adbury product range addresses the needs of each and every consumer, from childhood to maturity, from impulse purchase to family treats. #or e!ample an analysis of the KgiftE sector highlights the importance of developing innovative products to address specific markets. 7adbury designs products to coincide with 7hristmas, :aster, alentineEs, MotherEs and #atherEs "ay and other calendar landmarks. 7adbury use marketing strategies such as the K7hoose 7adburyE strategy to encourage a link between chocolate and these events ensuring there is a 7adbury chocolate product suitable and available for every occasion.
9
AD#*RTISIN DI4*MMAS •
/ince different chocolate-based products appeal to different age groups, 7adbury needs to offer a wide product range. :ach product needs promotion, which implies an advertising budget for each product line, which is very e!pensive.
•
roducts which are different from each other create an advertising problem. #or e!ample, a successful advertisement for a finger of fudge may boost sales of 7adburys #udge, but is unlikely to lift sales of 7adburys 7urly 0urly.
•
%ne approach is to promote the firm as a whole, that is, raise awareness of 7adburys, in the hope that this in itself will boost sales across 7adburys product range. +owever, like a pantomime casts attempts to throw 7adburys products to its audiences, a catch-all approach can be rather hit or miss and may produce a poor return.
•
Another way around this is to promote chocolate consumption in general. (his approach would re'uire co-operation between competitive producers and implies some loss of control for 7adburys.
•
%btaining good returns from advertising has been made harder by the fragmentation of television audiences. 0hen only one N television channel showed advertisements, advertisers knew that their efforts would be seen by a huge audience and might well become a talking point nationwide. Jowadays a firm knows that to reach a high proportion of potential customers it will need to place its advertisement with several ( channels. (his is e!pensive.
•
n line with its adding-value approach, the challenge to 7adbury promotes more than one product at once but without the large financial outlay normally associated with such a venture6 A team was put together and was asked to produce a convincing proposal.
=
Constr"$tive thinking
#rom within 7adbury came an interesting, attractive proposal based on some solid propositions5 •
#or children, consumption is linked to having fun. Any consumption that children regard as fun will also appeal to their parents, who do the spending.
•
%ther companies manage to associate consumption with children having fun. #or e!ample, "isney offers "isneyland, where, in the course of having a good time, children meet loveable characters whom they link with the purchases that parents make on their behalf, such as cinema tickets, videos, cuddly toys.
•
Iood ideas may be transferable. #or confectionery consumption to be viewed not merely as pleasurable but also fun, the companys products need to take on some characteristics of the entertainment industry.
•
(he company has a place where chocolate is made - 7adbury 0orld - that is a huge attraction to thousands of visitors each year. t is an asset that can be further developed. %ut of this line of thinking came a new 7adbury creation5 7adbury
@
(ROMOTIONA4 STRAT*3 (o step-up chocolate penetration in ndia across strata, the ?s 3=.1=- crore 7adbury ndia |
n an attempt to leverage the brand proposition amongst youth X who form the core target segment X the company plans to undertake a series of on-ground promotional activities combined with e!tensive outdoor advertising and television campaigns.
(he new television commercial shows a towering skyscraper as the montage. #rom there the camera zooms straight to a mid close-up of a teenaged girl who is an!iously awaiting the arrival of her boyfriend. As the boyfriend gets delayed, the scene gets cut to the ne!t shot where the girl rushes into a lift. n a series of 'uick continuous visual cuts the girl is displayed as going from one floor to the other. :very floor the girl opens the door she is sure to spot her boyfriend ready to welcome her with a bou'uet. n the parting scene the girl finally gives up and the boy hugs her and the lovers unite for a romantic retreat. (he camera immediately zooms to a close-up of the 3 /tar with its striking new package.
As an effort to communicate the core ethos of the brand to a broader youth audience, the company has also tied-up with youth 0ebsites such as 777.indya.$o and 777.$ri$info.$o as a
777.h"ngaa.$o ,
part of the promotional strategy.
:laborating the rationale behind the current series of integrated communication initiatives that the company has embarked, the spokesperson of 7adbury ndia informs5 G%ur principle objective is to modernize 3 /tarEs brand image and enhance youth connect. (hrough effectively communicating the functional attribute of 3 /tar along with the fun elements associated with chocolate, we intend to make the brand the Gtop of mindH energy enhancer in 2;
the youthEs life space. (hus, making 3 /tar the constant companion of the constantly charged ndian youthH. (he company also plans to consolidate its penetration strength by means of hardcore distribution-driven product development strategies. (he distribution networking too forms a part of the integrated brand development plan. (he impulse market is growing at the rate of around 2 to 4 per cent annually.
21
MAR?*TIN O CAD/UR3 /RAND (RODUCT
7adburyEs range of 7hocolate is the premium brand under the product range of 7adburyEs 7hocolates. ts an assortment of a range of raisins, fruits and other flavours with a 7hocolate 'uoting, the range are a translation of different up market consumer preferences into a premium range of flavored chocolates. (he products has been specifically placed in the segment of assorted and gift chocolates, gives the consumer the goodness of chocolate with flavours of honey, black forest, cashew etc. and its ad says G(oo Iood to /hareH. (AC?AIN
"uring the Market ?esearch found out that the packaging is also one of important reason buyers consider before the buy chocolates. found out that all the big players keep on changing there packaging after every si! month or they change it according to festivals and other different occasions. (his is due to the fact that most of the chocolates buying decisions are impulse momentary decision when one sees a chocolate in a shop then he makes an on the spot decision to buy or not to buy. Most of the people decide to buy the chocolate only if they find the packaging attractive. /o, what the companies benefit the most by changing the packaging every 4-month is that, the chocolate doesnEt go stale. t always looks like a new product.
Sales (rootion I. DI5A4I (ROMOTION
Iift ack with special packing was launched at various retail counters as well as websites at a special M? of ?s1;;.
II8 "antity p"r$hase s$hee for $"stoers8
%n purchase of 3 pcs of (emptations one special pen with 7adbury inscription free.
2$
III. "antity p"r$hase s$hee for retailers8
?etailers for a one time purchase of ?s=;;; or more worth of chocolates would get a mini fridge for storing 7hocolates in their shop which would remain with them as company property till they retail 7adbury 7hocolates.
I#.
"antity p"r$hase s$hee for Distri!"tors
0ith purchase of ?s 3;;; or more worth of 7adbury 7hocolates and a minimum of 2;F of this as (emptations the distributor can claim an additional $F.
(4AC*
?ange of 7hocolate can be bought from almost any whereW 7adburyEs has placed the chocolates through its huge all ndia networks of "istributor D ?etailers apart from that the range can be bought on line from a number of websites including its own. (he lacement of has been keeping in mind the perishable nature of chocolates, which need a special freezer to survive which is provided by the company to the retailers. (he shelf space D visibility is very important to achieve the targeted off take for the company therefore the freezer is almost always visible at retailers selling 7adburyEs range also it can be stated that is almost always visible .
2
(URC2AS* D*CISION /*2A#IOUR (he market today is flooded with chocolates of various companiesE brands. Most of these chocolates come in different weights and sizes. (he buyer has a very large range to choose from. "ifferent buyers have different reasons for there particular choice. 8ecause of the large number of chocolates in the market it becomes very difficult to find out e!actly why people buy a particular chocolate. (he best way to answer this 'uestion is to look at how people buy6
(his is how the purchase decision behavior of the buyer. (he purchase decision behavior doesnEt only mean what to buy6 8ut also from where to buy6 ssues in the purchase decision behavior5 ).*
redetermined decision
).*
oint of purchase decision
).* nfluencer
22
I.H (R*D*T*RMIN*D D*CISION:
redetermined decision is when the buyer is decided about the choice of what he has to buy. (his pre-determined decision of his a lot to do with Motivation, learning, ncome Iroup,
23
)@*. 4earning8 revious e!perience about the chocolate plays a very important role in predetermined decisions of a buyer. Any repurchase, acceptance, rejection of a chocolate or a related brand will have an effect on a personEs decision to buy a chocolate. )1;*. 4ifestyle and So$ial $lass8
In$oe ro"p Fdisposa!le oneyH8 (his
is one of the most important and an
obvious reason for a buyerEs predetermined decision. A buyer is going to buy a given chocolate in a given price range only when he has that much money to spend )disposable money* or that his income is so much that he can justify the purchase. )1$*. *9pos"re to prootional $apaigns8 :!posure to promotional campaigns also play a very important role in predetermined decisions for purchase, e.g. repeated e!posure to a very appealing advertisement is more likely to effect oneEs purchase decision behaviour e.g. most of the people who under want this test attributed their decision on to good advertising and promotional campaigns.
II.H (OINT O (URC2AS* D*CISION:
oint of purchase decision is where the buyer decides about the product on the spot. (hese on the spot decision are basically dependent on5 1. isibility $. ackaging . rice
)1*. #isi!ility8 (he product should be visible so that the productive buyer can be attracted and induced to buy.
24
)$*. (a$kaging8 ackaging is very critical to a particular brandEs success or failure. (he packaging, the brand name, the logo etc. assist in the visibility of the product, makes it stand out against the competition. Most of the buyers that underwent the perception test attributed their decision to purchase a particular product to the packaging. (he importance that the companies have been giving to the packaging of their chocolates is the strongest evidence to this point.
)*. (ri$e8
rice is another very important factor. /ome people decide on buying a
particular chocolate because they think its price to be good according to the product, some want to buy e!pensive chocolates. /o they go for the ones, which cost lesser. (hese decisions are dependent to a great e!tent on motivation and disposable money. (his is why companies have chocolates in different weights and in different price slots.
III.H IN4U*NC*RS8
nfluencer is someone who can influence to buy a particular chocolate. nfluences can be personal and non personal )non-living*. 1.
(ersonal Infl"en$ers8 (he personal influencers can be classified into
a. The shopkeeper (he
two categories.
shopkeeper acts as a very big influencer, he can make your
decision to buy a particular chocolate by stressing on its strength or break your particular decision by discouraging your decision. !. Others F(arentsB riends et$.H (hese
are the influencers like parent or friends who can
accord their perceptions, influence a buyerEs decision.
29
?%"7(
re-determined decision
oint of urchase ersonal nfluence Jonersonal
2=
Chapter'+ R*S*ARC2 M*T2ODO4O3
2@
R*S*ARC2 M*T2ODO4O3
+.1 Introd"$tion
?esearch is an art of scientific investigation through search for new facts in any branch of knowledge. t is a moment from known to unknown. ?esearch always starts with a 'uestion or a problem. ts purpose is to find answers to 'uestions through the application of the scientific method. t is a systematic and intensive study directed towards a more complete knowledge of the subject studied. As marketing does not address itself to basic or fundamental 'uestion, it does not 'ualify as basic research. %n the contrary, it tackles problems, which seem to have immediate commercial potential. n view of the major consideration, marketing research should be regarded as applied research. 0e may also say that marketing research is of both types problem solving and problem oriented. Marketing research is as systematic and objectives study of the problems pertaining to the marketing of the goods and services. t may be emphasized that it is not restricted to any particular area of marketing, but is applied to all the phases and aspects.
+.1.1 Resear$h Design
t is the master plan specifying the methods and procedures for collecting and analyzing the needed information. A research design is the arrangement of conditions for the collection and analysis of data that aims to combine relevance to the research purpose with economy in procedure.
3;
+.% M*T2OD O DATA CO44*CTION
1H Data to !e $olle$ted.
"ata includes facts and figures, which are re'uired to be collected to achiever the objectives of the project.
aH (riary Data
(he data that is being collected for the first time or to particularly fulfill the objectives of the project is known as primary data. (hese types of data were, - ?esponses of consumer. (he above primary data were collected through responses of consumer was conducted through 'uestionnaires prepared for them.
!H Se$ondary Data
/econdary data are that type of data, which are already assembled and need not to collected from outside. (hese types of data were i* 7ompany rofile ii* roduct rofile iii* 7ompetitors rofile (he aforesaid data were collected through nternet and companyEs financial report.
31
%H Data Colle$tion Te$hniL"e
#or given project, the primary data, which needed to collect for the first time, were much significant. (his type of information gathered through /urvey techni'ue, which is the most popular and effective techni'ue for correct data collection. (he survey was completed with the use of 'uestionnaires. "estionnaire for $ons"er.
A L"estionnaire is a research instrument consisting of a series of 'uestions and other prompts for the purpose of gathering information from respondents. Although they are often designed for statistical analysis of the responses, this is not always the case. Luestionnaires have advantages over some other types of surveys in that they are cheap, do not re'uire as much effort from the 'uestioner as verbal or telephone surveys, and often have standardized answers that make it simple to compile data.
+H Sapling
/ample is the small group taken under consideration from the total group. (his small group represents the total group. n the project the market research, which was ask to be studied was "elhi market but as it was possible to approach all the respondent s customer of the city, hence a sample was selected which represents the whole city. (he areas selected for the sample are present further in the appendi!.
Sapling Sie
(he survey was done using non-probability convenience sampling. (he survey has been done by filling of the 'uestionnaire by the different general people according to the convenience. (he sample size has been fi!ed up to 1;; out of which @ 'uestionnaires were found to be complete and the rest 9 were incomplete hence, rejected. /o the research is conducted on the data collected through @ 'uestionnaires to know about customerEs attitude D mindset towards 7adbury.
3$
+.+ 4IMITATIONS
1. 8ecause of time constraint sample size was the scope of this project is limited to areas in Jew "elhi only. $. (he estimates are done on average basis. . (he project had scope for future research, which was beyond my resource due to time constraint and work pressure. 2. 8ecause of time constraint sample size was restricted on 1;;. 3. /ome of the respondents did not respond due to lack of time. 4. /ome were biased towards their brand, which might not be giving them good service.
3
Chapter'DATA ANA43SIS ; INT*R(R*TATION
DATA ANA43SIS AND INT*R(R*TATION
L1. "o you like chocolates6
>es
J% 32
ig"re 1.
INT*R(R*TATION (o this 'uestion 3 consumers reported yes, 13 reported Jo. (his shows that most of the people like eating chocolates.
L$. +ave you heard of 7adbury chocolates6 FaH 3es
F!H No
33
ig"re %
INT*R(R*TATION
(o this 'uestion 23 consumers heard of 7adbury 7hocolate, 3 consumers are not aware of 7adbury chocolates.(his shows that consumers are aware of 7adbury chocolates.
34
L.+ave you ever bought a 7adburys chocolate6 )a* >es
)b* Jo
ig"re +
INT*R(R*TATION
(o this 'uestion 3 consumer reported >es and 13 reported J%. (his shows that most of the consumers buys 7adbury chocolates.
39
L2. f yes, then why 7adbury6 )a* (aste
)b* Luality
)c* rice
)d* Availability
ig"re -
INT*R(R*TATION
(o this 'uestion 2;F consumers like 7adbury chocolates because of its taste . whereas $$F like it because of its 'uality,$;F because of its reasonable price and 1=F because of its availability.this shows that most of the consumers likes 7adbury because of taste.
3=
L3. f no, then why not6 )a* rice
)b* +ealth conscious
)c* (aste
)d* 7ant say
ig"re &
INT*R(R*TATION
(o this 'uestion 22F consumers reported that they do not buy chocolates because of price. 0hereas 4F consumer reported that because of health consciousness,1;F because of taste. (his shows that consumers do not buy 7adbury chocolates because of price and health consciousness.
3@
L4. +ow often do you buy 7adburys chocolate6 )a* #re'uently
)b* %ccasionally
)c* ?arely
)d* Jever
ig"re
INT*R(R*TATION
(o this 'uestion 42F consumers reported that they buy 7adburyEs chocolates fre'uently. 0hereas 14F consumer reported that they buy chocolates occasionally ,12F reported that they buy chocolates rarely and 4F canEt say.
4;
L9. +ow do you feel about Luality of 7adbury chocolates6 )a* Iood
)b* ery Iood
)c* Jeutral
)d* 8ad
ig"re ,
INT*R(R*TATION
t is observed that $3 consumers found 'uality of 7adbury very good while 13 consumer found it good. ?emaining 1; consumer find the 'uality as neutral or bad. (his shows that 433 consumer find 7adbury chocolates as of good 'uality.
41
L=. %n what occasions do you buys 7adburys chocolate6 )a* #estivals
)b* 8irthdays
)c* Iift
)d* no occasion
ig"re <
INT*R(R*TATION
(o this 'uestion 2;F consumer reported that they buy chocolates without occasions, $4F on birthdays,$;F for gifts and rest buy on festivals. (his shows that customers do not see any occasion for buying 7adbury chocolates.
4$
L@. +ow do you feel regarding price of different brands of chocolate6 )a* 7adbury- +ighP
Cons"er6s per$eption a!o"t the pri$es of different !rands
#igure @ 90 80 70 60 50 40 30 20 10 0 CADBURY
NESTLE HIGH
AMUL
OTHERS
REASONABLE
INT*R(R*TATION
(o this 'uestion @;F consumers find other chocolates as reasonable as compared to other brands like 7adbury i.e =;, Jestle- 93F and Amul-9;F. %n the other hand ;F consumers find price of Amul very high as compared to 7adbury i.e $;F, Jestle-$3 and others-1;F.
4
L1;. +ow do you feel about the taste of 7adbury 7hocolate6 )a* Iood
)b* ery Iood
)c* Jeutral
)d* 8ad
ig"re 1=
INT*R(R*TATION
(o this 'uestion 2;F consumers find taste of 7adbury chocolates very good,22F finds good,1;F neutral and 4F bad .(his shows that consumer find 7adbury chocolates of good taste.
42
11. "o you find 7adburyEs advertisements attractive6
)a* >es
)b* Jo
ig"re 11
INT*R(R*TATION
(o this 'uestion 23 consumers find 7adburyEs advertisement attractive 0hereas 3 consumers do not find advertisement attractive. (his shows that 7adburyEs advertisements are attractive.
43
L1$. Are 7adbury chocolates easily available6 )aH 3es
F!H No
ig"re 1%
INT*R(R*TATION
(o this 'uestion =4F consumers reported that 7adburyEs chocolates are easily available whereas 12F consumers reported that 7adburyEs chocolates are not easily available. (his shows that 7adbury chocolates are easily available to the consumers.
44
Chapter '& INDINS ; CONC4USION
49
&.1 INDINS AND ANA43SIS
1. Majority of the customer s belonged to age group of 1$-3 years. t shows that this age group likes chocolates and knows about 7adbury. $. 7onsumers are ma!imum satisfied with the 'uality of 7adbury. #ollowed by Jestle, then Amul and then other competitors . 7onsumers find price of 7adbury reasonable. 0hereas they find price of other brands high as compared to 7adbury chocolates. 2. urchase behavior of consumers depends mostly on taste, then price, 'uality and availability. 3. ?ole of advertisement in attracting consumers is high. 4. (here is easily availability of 7adbury chocolates.
4=
&.% CONC4USION
7adburyEs have tried to position its chocolates as a light snack between meals ):?N*, also targeted some of its chocolates for gift purpose )"A?> M
4@
Chapter ' R*COMM*NDATIONS ; /I/4IORA(23
9;
.1R*COMM*NDATIONS
7adbury can improve on their brand by adding some new flavours as well as changing its packaging. 1. 7adbury can also capture a large market by lowering its price. 8y some price reduction and keeping some small gifts likes (attoos, /mall 7ars etc. they can
also target kids.
$. 7adbury can also improve by giving new shapes and different appeals to consumer.
91
.% /I/4IORA(23
R**R*NC*S 8' •
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9$
ANN*UR*
L1. "o you like chocolates6 )a* >es
)b* Jo
L$ +ave you heard of 7adbury chocolates6 )a* >es
)b* Jo
L +ave you ever bought a 7adburys chocolate6 )a* >es
)b* Jo
L2 f yes, then why 7adbury6 )a* (aste
)b* Luality
)c* rice
)d* Availability
L3 f no, then why not6 )a* rice
)b* +ealth conscious
)c* (aste
)d* 7ant say
L4 +ow often do you buy 7adburys chocolate6 )a* #re'uently
)b* %ccasionally
)c* ?arely
)d* Jever
L9 +ow do you feel about Luality of 7adbury chocolates6 )a* Iood
)b* ery Iood
)c* Jeutral
)d* 8ad
L=. %n what occasions do you buys 7adburys chocolate6 )a* #estivals
)b* 8irthdays
)c* Iift
)d* no occasion
9
