Consumer Purchase Behavior Analysis Of    Cadbury Bournvita And 5 Star (2012-13)Submitted by: Group No 11                 ...
TABLE OF CONTENTS     1. PROJECT BRIEF     2. COMPANY AND PRODUCT DETAILS     3. COMPANY ANALYSIS          3.1 HISTORY AND...
10. BIBLIOGRAPHY    1. PROJECT BRIEF            i.   The core aim of executing this project is to understand When, Why, Ho...
x.       All numbers on the graphs are represented as percentages.          xi.      Company analysis of Cadbury India(Kra...
3. COMPANY ANALYSIS      3.1 HISTORY AND GROWTH         3.1.1   CADBURY                  Cadbury, a confectionary company...
 Cadbury later acquired Royal Crown, Canada Dry, Snapple, Mistic and others              until the year 2000.            ...
3.1.3   KRAFT FOODS             Kraft Foods are the world’s second largest food company with annual revenues             ...
3.2 PRODUCT PORTFOLIO              Dairy Milk    Celebrations              Bournville           Perk              Gems    ...
3.2.1   Market Price of Products used in this study                 Product                                    Price      ...
3.4 FINANCIAL ANALYSIS       3.4.1     Sales       Sales has gone up from Rs 1006 Cr in 2005 to Rs 2045 Cr in 2009, an inc...
Net Profit             200             150             100                                                                ...
3.4.4       FINANCIAL STATEMENTS                  EXECUTIVE SUMMARY REPORT 2005-2010                                      ...
Total as sets                                     6,644.60   7,073.30   8,183.10   9,727.30   14,610.90   19,293.60 Net fi...
4. COMPETITIOR INFO             •   The major competitor of Cadbury India is Nestle.             •   Below table shows the...
5    MARKET RESEARCH METHODOLOGY       5.1 DATA COLLECTION            5.1.1   Primary Data            o   Pre-Purchase con...
o   We have also tapped the demographic details of consumers, namely Name, Age,                Location, household income ...
Purchase Decision                                        Purchase                                      Satisfaction     Di...
Health drinks largely cater to the                                                    children’s market and therefore,    ...
What kind of packaging do you prefer?                                           Refill packaging is most preferred due    ...
TOMA about Bournvita?         Health drink...nutrition and taste...creamy         lather...taste...yellow...children’s fav...
•   For the sample size of 18, we are using the Chi-square distribution value to develop interval         estimates and co...
Source of awareness about Bournvita     •   Reasons for buying Bournvita             This shows that the nutritional valu...
In general,                                                                          respondents areLeast satisfying attri...
 The advertisements have no influence on the purchase behaviour of the                         respondents. Just 6% (name...
25
6.3 CADBURY 5 STAR – ANALYSIS               6.3.1    5 Star Pre-PurchasePreferred flavor of chocolate?            5 star ...
 No respondent is willing to pay beyond Rs.20 for a normal bar of chocolate.Are the consumers interested in buying one pa...
 The times when chocolate used to be marketed as a kid’s product is passé as more and             more adults are indulgi...
Supermarkets                17                        55               Provision store                                    ...
Influence of advertisements         The respondents were asked to rate the level of          The general observation is th...
 A majority of respondents (89%) recollect some chocolate advertisement. The most             recalled were Dairy Milk ad...
 For most consumers of 5 star, the taste stands out as the motivator to purchase it over             other chocolates. Th...
f. If price increases from                               √              √√√          Rs.5 to Rs.10                        ...
Fruit and nut                  Classic                Crunchy                            0    10    20      30      40    ...
•       More than half of the people feel that the ideal price for the chocolate is from 5 Rs to 10 Rs.             People...
•Bournvita   • Based on the report, people prefer to have extra quantities as an offer. An extra 10% would help       incr...
http://www.cadburyindia.com/in/en/home/index.aspx.http://www.kraftfoodscompany.com/welcome.aspxProwess 4.0Books:     •   M...
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  1. 1. Consumer Purchase Behavior Analysis Of Cadbury Bournvita And 5 Star (2012-13)Submitted by: Group No 11 • Abhishek Jain (FT13301) • Abhishek Sharma (FT13300) • Booppathy Sundararaj (FT13317) • Guru Prasad (FT13332) • Rasika Sampath (FT13363) • Srivatsan Ramesh (FT13378)Recipient: Dr. Tapan K PandaDate of Submitting the Report: 7th June, 20121
  2. 2. TABLE OF CONTENTS 1. PROJECT BRIEF 2. COMPANY AND PRODUCT DETAILS 3. COMPANY ANALYSIS 3.1 HISTORY AND GROWTH 3.2 PRODUCT PORTFOLIO AND PRICING 3.3 MARKET SHARE 3.4 FINANCIAL ANALYSIS 3.4.1 NET SALES 3.4.2 NET PROFIT 3.4.3 NET PROFIT MARGIN 3.4.4 EXECUTIVE SUMMARY REPORT 4. COMPETITOR INFORMATION 5. MARKET RESEARCH METHODOLOGY 5.1 DATA COLLECTION 5.2 QUESTIONNAIRE DESIGN 5.3 MARKET SURVEY LOCATION 6. CONSUMER BEHAVIOR ANALYSIS 6.1 CONSUMER BEHAVIOR PROCESS 6.2 CADBURY BOURNVITA – ANALYSIS 6.3 CADBURY FIVE STAR – ANALYSIS 7. CONCLUSION 8. RECOMMENDATIONS 9. APPENDICES2
  3. 3. 10. BIBLIOGRAPHY 1. PROJECT BRIEF i. The core aim of executing this project is to understand When, Why, How and Where consumers purchase a product or do not purchase a product. ii. Consumer Decision Making process in purchasing a Health Drink and a Chocolate are analyzed. iii. Products used in this study are Cadbury Bournvita and Cadbury 5 Star in the price range Rs. 100 to Rs. 1000 and less than Rs. 10 respectively. iv. Consumer Behavior analysis (Pre-purchase and Post-purchase) for Cadbury Bournvita is completed by identifying a total of 36 consumer samples. v. Consumer Behavior analysis (Pre-purchase and Post-purchase) for Cadbury 5 Star is completed by identifying a total of 36 consumer samples. vi. Questionnaires used for analysis are basically focused on the 4 P’s of Marketing Product, Price, Place, and Promotion. vii. Face-to-Face interviews were conducted with every consumer. viii. Major parameters affecting consumer purchase behavior for both products are identified and inferences drawn. ix. Inferences are drawn separately for Pre-Purchase and Post-Purchase consumer behavior for both the products.3
  4. 4. x. All numbers on the graphs are represented as percentages. xi. Company analysis of Cadbury India(Kraft Foods) is completed by understanding the Market Share data, Financial Statements, Net Sales report, Net Profit report 2. COMPANY AND PRODUCT DETAILS2.1 COMPANY DETAILS a. Name of Company – Cadbury b. Year Founded – 1824, Birmingham, United Kingdom c. Industry – Confectionery d. Parent Company – Kraft Foods, USA e. Chairman & CEO – Irene Rosenfeld (Kraft Foods)2.2 PRODUCTS IN SCOPE OF THIS STUDY:- Cadbury Bournvita Price between Rs. 100 and Rs.1000 Cadbury 5 Star Price less than Rs. 104
  5. 5. 3. COMPANY ANALYSIS 3.1 HISTORY AND GROWTH 3.1.1 CADBURY  Cadbury, a confectionary company, is a subsidiary of Krafts Foods. The company’s headquarters is in London, UK. The company operates in about 50 countries across the world.  Cadbury’s history dates back to 1824 when John Cadbury started selling his own produce tea, coffee, drinking chocolate, cocoa.  Cadbury’s flagship product Dairy Milk was launched in 1905 followed by Fruit and Nut, Whole Nut, Flake, Crunchie, Roses.  In 1969, Cadbury merged with Schweppes, which was a drinks company, to form Cadbury Schweppes.5
  6. 6.  Cadbury later acquired Royal Crown, Canada Dry, Snapple, Mistic and others until the year 2000.  In 2010, Cadbury was acquired by Kraft Foods which obtained 71% of Cadbury’s Shares for $18.9 bn. 3.1.2 CADBURY INDIA  Cadbury India Ltd. is a part of Kraft Foods. Cadbury India operates in five categories: Chocolate confectionery, Beverages, Biscuits, Gum and Candy.  In India, Cadbury began its operations in 1948 by importing chocolates. After over 60 years of existence, it today has six company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) Hyderabad and 4 sales offices (New Delhi, Mumbai, Kolkata and Chennai). The corporate office is in Mumbai.  In the Chocolate Confectionery business, Cadbury has maintained its undisputed leadership over the years as it enjoys a value market share of over 70 percent in the category.  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. Cadbury India recently entered the biscuits category with the launch of the Worlds No 1 biscuit brand Oreo.  Some of the key brands are Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls, Éclairs, Bubbaloo, Tang and Oreo.6
  7. 7. 3.1.3 KRAFT FOODS  Kraft Foods are the world’s second largest food company with annual revenues of $49.2 billion. Kraft Foods ( KFT ) market share in the global chocolate and candy markets has traditionally trended in the range of 5-6%. The firms market share rose sharply in 2010, to 15%, driven by its acquisition of Cadbury for a whopping $19.5 billion. This acquisition strengthened Krafts presence in the global chocolate and candy market, particularly in emerging markets like India where Cadbury had maintained operations for many years.  Kraft Foods has its presence in approximately 170 countries.  Twelve of the company’s iconic brands—including Cadbury, Jacobs, Kraft, LU, Maxwell House, Milka, Nabisco, Oreo, Oscar Mayer, Philadelphia, Trident and Tang—generate revenue of more than $1 billion annually, and 40 of them are century old brands.  Kraft Foods primarily competes with Nestle, Kellogg Company ( K ) and General Mills ( GIS ) in the confectionery market.  More than 80 percent of Kraft Food revenues come from products that hold the No. 1 share position in their respective categories. And more than 50 percent of revenue is driven by categories where our market share is twice the size of the nearest competitor.  A leader in innovation, marketing, health & wellness and sustainability, Kraft Foods is a member of the Dow Jones Industrial Average, Standard & Poor’s 500, Dow Jones Sustainability Index and Ethibel Sustainability Index7
  8. 8. 3.2 PRODUCT PORTFOLIO Dairy Milk Celebrations Bournville Perk Gems Bournvita Tang Oreo8
  9. 9. 3.2.1 Market Price of Products used in this study Product Price Bournvita 85g Rs. 25 Bournvita 500g Rs. 171 5 Star 13g Rs. 5 5 Star 27g Rs. 10 3.3 MARKET SHARE Cadbury India market share in different segments in 2011 120 100 80 60 40 20 Others 0 Cadbury9
  10. 10. 3.4 FINANCIAL ANALYSIS 3.4.1 Sales Sales has gone up from Rs 1006 Cr in 2005 to Rs 2045 Cr in 2009, an increase of 103% Sales 2,500 2,000 1,500 Sales 1,000 500 0 Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 3.4.2 Net Profit Net profit has gone up from Rs 45.95 Cr to Rs 188.63 Cr, an increase of 310%10
  11. 11. Net Profit 200 150 100 Net Profit 50 0 Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 3.4.3 Net Profit Margin Net profit margin has gone up year on year from 2005 to 2008, while in 2009, it has Marginally reduced from 2008 to 2009 Net Profit Margin 12 10 8 6 Net Profit Margin 4 2 0 Dec 05 Dec 06 Dec 07 Dec 08 Dec 0911
  12. 12. 3.4.4 FINANCIAL STATEMENTS EXECUTIVE SUMMARY REPORT 2005-2010 Executive Summary Cadbury India Ltd. Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Currency: Rs. Million (Non-Annualised) 12 mths 12 mths 12 mths 12 mths 12 mths 12 mths - Total incom e 10,235.80 11,723.70 14,836.70 17,763.10 20,601.30 26,521.30 Sales 10,060.20 11,499.70 14,419.20 17,512.40 20,450.80 26,149.00 Income from financial services 111.6 176.4 171.2 219 94.6 164.4 Total expens es 9,880.50 11,010.20 13,833.10 16,550.00 18,552.20 25,267.70 Raw materials, stores & spares 2,515.80 3,022.00 4,010.20 5,311.30 6,264.80 9,138.90 Pow er, fuel & w ater charges 196.2 208.3 253 297 372.5 526.1 Compensation to employees 1,008.20 1,076.30 1,210.40 1,302.20 1,485.10 1,873.30 Indirect taxes 1,468.90 1,094.70 1,764.10 1,867.60 1,325.70 1,915.10 Selling & distribution expenses 1,724.60 2,190.40 2,600.30 2,940.60 3,718.00 5,108.40 Other operational exp. of industrial ent. Other operational exp. of non-f in. services ent. Interest paid 7.6 15.4 44 19.8 16.9 Depreciation 325.8 331.5 340 364.6 438.3 607.6 Profits PBDITA (Operating profit) 1,159.80 1,478.20 1,968.50 2,435.50 2,815.30 3,123.60 PBDITA net of P&E 1,164.40 1,444.70 1,777.70 2,434.90 2,794.80 3,099.30 Profit after tax (PAT) 459.6 688.1 1,176.50 1,657.80 1,886.30 2,087.80 PAT net of P&E 464.2 654.6 985.7 1,657.20 1,865.80 2,063.50 Total liabilities 6,644.60 7,073.30 8,183.10 9,727.30 14,610.90 19,293.60 Net w orth 4,064.50 3,784.10 4,061.30 4,644.00 5,307.90 7,323.50 Paid up equity capital (net of forf eited equity cap.) 357.1 343.6 332 321.8 310.7 310.7 Reserves and funds 3,980.90 3,577.30 3,729.30 4,322.20 4,997.20 7,012.80 Borrow ings 82.2 100.1 87.6 417 121.7 196.5 Fixed deposits Current liabilities & provisions 2,095.00 2,968.40 3,881.50 4,528.80 8,988.70 11,555.0012
  13. 13. Total as sets 6,644.60 7,073.30 8,183.10 9,727.30 14,610.90 19,293.60 Net fixed assets 1,606.10 1,650.80 2,455.90 2,513.90 3,526.40 5,064.30 Investments 2,582.00 2,534.20 2,984.80 29.2 180 579 Current assets 1,564.30 1,753.40 2,172.40 5,617.10 5,493.60 8,260.10 Loans & advances 257.6 128.4 229.7 234.9 3,801.90 4,231.00 Gross fixed assets 3,954.90 4,302.10 5,447.70 5,869.40 7,247.40 8,988.00Grow th (%) Total income 12.7 14.5 26.6 19.7 16 28.7 Total expenses 12.9 11.4 25.6 19.6 12.1 36.2 PBDITA 10.7 27.5 33.2 23.7 15.6 11 PAT -0.5 49.7 71 40.9 13.8 10.7 Net w orth 2.6 -6.9 7.3 14.3 14.3 38 Total assets 14.8 6.5 15.7 18.9 50.2 32Profitability ratios PBDITA net of P&E as % of Total inc net of P&E 11.4 12.4 12.1 13.7 13.6 11.7 PAT net of P&E as % of Total income net of P&E 4.5 5.6 6.7 9.3 9.1 7.8 PAT net of P&E as % of Avg. net w orth 11.6 16.7 25.1 38.1 37.5 32.7 PAT as % of Avg. net w orth 11.5 17.5 30 38.1 37.9 33.1 PAT net of P&E as % of Avg. total assets 7.5 9.5 12.9 18.5 15.3 12.2 PAT as % of Avg. total assets 7.4 10 15.4 18.5 15.5 12.3Liquidity ratios (tim es) Quick ratio 0.2 0.2 0.1 0.7 0.4 0.4 Current ratio 2 1.4 1.3 1.2 0.6 0.8 Debt to equity ratio 0 0 0 0.1 0 0 Interest cover 49.3 49.9 266.2 39.8 71.8 63.9 Debtors (days) 8.8 5.8 4.7 4.7 5.9 6.3 Creditors (days) 77.5 96.6 103.5 98.7 102.8 96.5Average cost of Funds 9.8 16.9 0 17.4 7.4 10.6Efficie ncy ratios (tim es) Total income / Avg. total assets 1.7 1.8 2 2 1.7 1.6 Total income / Compensation to employees 10.2 10.9 12.3 13.6 13.9 14.213
  14. 14. 4. COMPETITIOR INFO • The major competitor of Cadbury India is Nestle. • Below table shows the financial details of Nestle. Sales turn over 0.434603784 43.46037839Reported net profit 0.585956416 58.59564165 Net profit margin 0.105 10.514
  15. 15. 5 MARKET RESEARCH METHODOLOGY 5.1 DATA COLLECTION 5.1.1 Primary Data o Pre-Purchase consumer behavior is analyzed by identifying a total of 36 consumer samples for two product ranges. o Post-Purchase consumer behavior is analyzed by identifying a total of 36 consumer samples for two product ranges. o Face-to-Face interviews were conducted with every consumer o Interviews were conducted using semi-structured questionnaires prepared separately for each product range. 5.1.2 Secondary Data o Secondary data for Consumer Analysis and Company Analysis are collected from Internet, Prowess Database, and Magazines. 5.2 QUESTIONNAIRE DESIGN o Two separate questionnaires were prepared for Pre-purchase behavior and post- purchase behavior. o Questionnaires basically focused on the 4 P’s of Marketing Product, Price, Place, Promotion15
  16. 16. o We have also tapped the demographic details of consumers, namely Name, Age, Location, household income and family size. 5.3 MARKET SURVEY LOCATION o Face-to-Face interviews were conducted in Supermarkets in Anupuram, Mahabalipuram, and Chennai. 5.4 ANALYSIS TECHNIQUES USED o The customer responses for various questions are measured and are represented using descriptive charts such as Pie-charts, Bar charts, Venn Diagrams. o Statistical Analysis Technique Chi-Square distribution to identify interval estimates and conducted hypothesis test about a population variance.6 CONSUMER BEHAVIOR ANALYSIS 6.1 CONSUMER BEHAVIOR PROCESS Need Perception/Sensation Cognition Market Information Research Preferences16 Budget Constraints
  17. 17. Purchase Decision Purchase Satisfaction Dissatisfaction Habit Formation Referral 6.2 CADBURY BOURNVITA – ANALYSIS 6.2.1 Bournvita Pre-PurchaseWho plays a major role in buying decision17
  18. 18. Health drinks largely cater to the children’s market and therefore, kids have a major influence in the purchase.Do you decide to purchase a particular health drink based on the freebies that are offered with it ? Offering freebies does not make much of a difference to the buying behavior, in spite of Bournvita being a higher value brand.What kind of offers would you like to get along with the health drinks? Most consumers (67%) expect value for money from the health drink in the form of extra quantity offers rather than free gifts or discounts.18
  19. 19. What kind of packaging do you prefer? Refill packaging is most preferred due to reusability.Flavors expected out of a health drink? Chocolate is the most preferred flavor for health drinksWhat is the need to buy a health drink?19
  20. 20. TOMA about Bournvita? Health drink...nutrition and taste...creamy lather...taste...yellow...children’s favouriteStatistical Analysis Technique - Chi Square distribution20
  21. 21. • For the sample size of 18, we are using the Chi-square distribution value to develop interval estimates and conduct hypothesis test about a population variance. • The degrees of freedom are 17. • From the table, we see the limits are 7.564 and 30.191 and the calculated value is 9.77 which fall in the 95% coincidence level. • From this, we can infer that the purchasing decision is not influenced by the advertisements. 6.2.2 Bournvita Post-Purchase21
  22. 22. Source of awareness about Bournvita • Reasons for buying Bournvita  This shows that the nutritional value is of high consideration while buying a health drink like Bournvita. Taste is the only other factor. This is probably why all the advertisements for health drinks emphasize on these two factors22
  23. 23. In general, respondents areLeast satisfying attribute satisfied with all aspects of Bournvita and have nothing to complain about. A very few feel the nutritional value and the taste could be improved.Changes in consumption pattern: Increases Decreases No change a. If price is increased √ √√√ b. Advertisements √√√ √- above 20%, √√ - above 50%, √√√ - above 70%23
  24. 24.  The advertisements have no influence on the purchase behaviour of the respondents. Just 6% (namely, one respondent) said it was an influence. • What influenced the purchase of Bournvita?  Cadbury’s is a brand that has instilled a lot of trust in consumers over timeUSP of Bournvita according to the respondents Although we saw previously that most people purchase Bournvita for its nutritional aspects, they seem to think the USP of Bournvita lies in its taste.24
  25. 25. 25
  26. 26. 6.3 CADBURY 5 STAR – ANALYSIS 6.3.1 5 Star Pre-PurchasePreferred flavor of chocolate?  5 star - caramel flavored chocolate has an advantage that caramel has maximum preference as compared to other flavors of chocolates. 5 star also comes in “fruit and nut” flavor which is the second most preferred. Therefore, Cadbury has capitalized on the flavor preferences of consumers.Ideal purchase price?26
  27. 27.  No respondent is willing to pay beyond Rs.20 for a normal bar of chocolate.Are the consumers interested in buying one pack of Rs.10 or two packs of Rs.5 each ? The perception is that the quantity is more if two Rs.5 chocolates are bought compared to a single Rs.10 bar. Also, the feeling is that sharing with others is easier if there are more units.Chocolate consumers in the household:27
  28. 28.  The times when chocolate used to be marketed as a kid’s product is passé as more and more adults are indulging in these sweet treats. In fact their chocolate consumption is nearly as much as the children.Place where they purchase chocolates from:28
  29. 29. Supermarkets 17 55 Provision store WHY? 28 Others: pharmacy, paan shop Ease of access 67 Good service 17 Availability 11 Others 5  None of the respondents felt the freebies offered with chocolates changed their purchasing pattern. The taste is the primary influencing factor for them when it comes to chocolates.  Although the survey was largely conducted in the small towns of Mahabalipuram and Anupuram, the importance of offering traditional sweets is slowly fading away and more and more people prefer offering chocolates as it has more universal appeal. According to our data, 72% of respondents prefer giving chocolates as gifts during festive occasions rather than sweets.29
  30. 30. Influence of advertisements The respondents were asked to rate the level of The general observation is that influence that advertisements have on their purchase customers are not greatly influenced by advertisements. This could also be because advertisements more often work 1 56 on the sub conscious level and in an indirect way. Therefore, 2 5 customers may not be aware of the extent of influence 3 39 advertisements have on them. 4 0 behavior on a scale of 1-5, 5 being the 5 0 maximum influence and 1 the minimum.30
  31. 31.  A majority of respondents (89%) recollect some chocolate advertisement. The most recalled were Dairy Milk advertisements. Following were the things/ phrases that appealed to them about the advertisements (the ads recollected were all in Tamil as the respondents were all from small towns in Tamil Nadu): o “Sweet edu, kondaadu”: Dairy Milk – the message is that every celebration starts with a Dairy Milk. o “Kanna laddoo thinna aasaya?”: Dairy Milk shots- the message is about a man getting lucky twice. Has a humor quotient about it. 6.3.2 5 Star Post-PurchaseWhy choose 5 star over other chocolates? 60 60 40 30 Taste 20 10 10 Brand 0 Availability Price31
  32. 32.  For most consumers of 5 star, the taste stands out as the motivator to purchase it over other chocolates. The brand (Cadbury’s) is a major motivator too.  Ease of availability was the primary motivator behind the choice of the purchase point. All respondents except for one think 5 star is value for money. The respondent who felt otherwise felt a price of Rs.2 is ideal for a bar currently sold at Rs.5.  All respondents except for one would like to receive additional quantity as an added value in 5 star. One respondent feels free gifts add value to 5 starWhether they recollect any advertisements of 5 star? Ramesh-Suresh advertisement was most recollected. The advertisements did not influence them to purchase the product.Changes in consumption pattern: Increases Decreases No change c. Bulk purchasing if √√ √ given a discount d. If offered 10% extra √ √√ quantity in each bar e. If 5 star offered free √√ √ gifts32
  33. 33. f. If price increases from √ √√√ Rs.5 to Rs.10 √- above 20%, √√ - above 50%, √√√ - above 70%Advantages and disadvantages vis-a-vis other chocolate brands: Has % 5 star Brand 33 Quality 11 These are the attributes which the Reasonable price 33 respondents felt 5 star has but other brands lack. Nutrition 6 Taste 17 Other chocolate brands Better taste 22 Reasonable price 17 These are the attributes which the Quality 11 respondents felt other brands have but 5 star lacks. Nutrition 11 Crunchy biscuit 6 Brand 6 Nothing in 28 particular  The brand and price of 5 star is by and large an advantage for Cadbury’s over other competitors. However, not many seem to like the taste of 5 star when compared with other brands. On the whole, 5 star seems to be at a fairly advantageous position vis-a-vis other similar chocolate brands.Preferred flavor of 5 star33
  34. 34. Fruit and nut Classic Crunchy 0 10 20 30 40 50 60  Fruit and nut is clearly the most preferred existing flavor of 5 star. The 5 star crunchy is not preferred by any of the respondents.  Other flavor suggestions for 5 star - Coffee, mint and coconut were the choice of a few. However, a majority was happy with the existing choices and was not particular about any other flavors.5 star as a gift, replacing sweets? 33 The trend of gifting chocolates instead of traditional sweets has Yes not caught on in a big way in this No part of the country. 677 CONCLUSION5 STAR: • As per our report, almost three fourth of the people prefer caramel and fruit and nut flavors in chocolate.34
  35. 35. • More than half of the people feel that the ideal price for the chocolate is from 5 Rs to 10 Rs. People prefer to buy from supermarkets and local provisional stores because of ease of access. • The most important aspect that determines the purchasing behavior of a consumer is the chocolate’s taste. • Most people would like to gift chocolates instead of sweets.Based on the above facts, the market share that 5 star has can be attributed to the following propertiesof 5 star. • 5 star is readily available in almost all the supermarkets and provisional stores in both the caramel and Fruit and Nut flavors. • The low price of the chocolate makes 5 star a value for money. • Although it is not the best tasting chocolate, the lower price makes it one the highest selling chocolates. • Although people like to gift chocolates as replacement of sweets, they do not prefer to gift 5 star as a gift.BOURNVITA: • As per our report, almost two thirds of the decisions of choosing the brand of a health drink are done by adults in the family. • More than half of the people prefer to have extra quantities as promotional offers. • Nutrition is the major factor while choosing a health drink, which is followed by taste. • Almost two third of the people prefer the chocolate flavor in health drinks. • More than half of the people would prefer their health drinks to be in refill packs.Based on the above facts we can comprehend that Bournvita is one of the leading brands in the healthdrinks field because of the following reasons: • As the decision to purchase health drinks is done by adults and nutrition is major factor behind purchasing a health drinks, Bournvita , with its focus on nutrition , has a great advantage. • As people prefer to buy chocolate flavor in health drinks and taste being the second factor while purchasing a health drink, the chocolate flavor and better taste of Bournvita has really helped its case. • More than 80% of the people feel that that the brand name of Bournvita also plays a big part while choosing Bournvita as a health drink. • Almost everyone unanimously agreed that they were satisfied with the nutrition and taste offered by Bournvita8 RECOMMENDATIONS5 Star • Improve the market campaign and advertising strategy of the Fruit and Nut and Crunchy flavors of 5 Star as these flavors are lagging in the market. • Based on the suggestion for the new flavors, coffee seems to be a good option for a new flavor.35
  36. 36. •Bournvita • Based on the report, people prefer to have extra quantities as an offer. An extra 10% would help increase Bournvita consumption and thereby increasing the sales. • Word of mouth seems to be dominant factor of advertising. Bournvita needs to improve its advertising campaign as advertisements are not a leading factor behind people choosing Bournvita. • Majority of the people were unaware about the advertisements of Bournvita. The lack of advertisements of Bournvita in regional languages is an important factor that has led to this unawareness. More focus on advertisements in the regional languages could really help increase the sales for Bournvita.9 REFERENCESWebsites:http://www.moneycontrol.com/stocksmarketsindia/36
  37. 37. http://www.cadburyindia.com/in/en/home/index.aspx.http://www.kraftfoodscompany.com/welcome.aspxProwess 4.0Books: • Marketing management-second edition by Dr. Tapan K panda. • Statistics for business and economics by Anderson, Sweeney and Williams37

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