A Report On

THE BUYING BEHAVIOR For CADBURY Chocolates

By:

Anushree Salike

1
 A Report On

THE BUYING BEHAVIOR For CADBURY Chocolates

By:

Anushree Salike

Roll No.10104

A report submitted in partial fulfillment of the requirements of

PGDM

(BATCH-XVIII)

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Table of Contents
Acknowledgments:......................................................................................................................................4
Summary:....................................................................................................................................................5
Introduction:...............................................................................................................................................6
About Consumer Buying Behavior:..........................................................................................................6
CADBURY.................................................................................................................................................7
CADBURY INDIA.......................................................................................................................................7
Objectives:...............................................................................................................................................9
Scope of the report:.................................................................................................................................9
Limitations of the report:......................................................................................................................10
Methods of collecting the data:.............................................................................................................10
Methodology:........................................................................................................................................10
Use of Statistics:................................................................................................................................11
Table 1...............................................................................................................................................12
Table 2...............................................................................................................................................15
Table 3...............................................................................................................................................17
Table 4:..............................................................................................................................................19
Conclusion:............................................................................................................................................21
References:............................................................................................................................................21
Appendices:...........................................................................................................................................22
Questionnaire....................................................................................................................................22

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Acknowledgments:

I acknowledge all those who made it possible for me to complete this project, by extending their
support and continuous cooperation. I would like to acknowledge the encouragement extended
by The Director-Dr. Kamal Ghosh Ray, and The Dean-Academic Planning- Dr. Ch. S. Durga
Prasad, of Vignana Jyothi Institute of Management.

I would also like to thank Mr.A. Ramesh and Mr. Durga Prasad Sadhu , Associate Professor
whose constant guidance, efforts, heartfelt support, suggestions and consideration helped me in
the successful completion of this project.
Finally, I would like to thank my friends and family for patiently answering the questionnaire,
without whom this project might have been difficult to complete successfully

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Summary:

The study deals with the buying behavior of various age groups of Cadbury chocolate. It
also deals with the factors that influence their buying behavior. The buying behavior varies from
product to product and person to person. The questionnaire was sent to different ages in order to
know to now what are the various factors that has influenced their buying behavior. Sometimes
more than one factor can influence their buying behavior. Buying behavior for any product is
important, based on the factors the marketers play a role in further influencing their buying
behavior. For the age group 10-15 years the factors cannot be correct as in this age group it
consists of children who may or may not know the actual factors that have influenced their
buying behavior. The factors considered here are the Social factors, Cultural factors and the
Personal factors. In the Social factor it is majorly the family, friends and the co-workers that
influence the buying behavior, in the cultural factor it is the preferences, the mood, the taste, the
status that have influenced the buying behavior of the consumer, in the personal factor it is the
personality, the age and stage of the life cycle, the occupation etc. In this report it is clear that
social factor is the major factor that has influenced the buying behavior of various ages. That is
the family, the friends and the co-workers have influenced the consumers to buy the product. In
some cases it may not be always, but the major factor that has influenced is the social factor.
The consumers between the age group 50-55 years and above do not eat much chocolate but if
they do then it is Cadbury they prefer. The reason that these consumers do not prefer or do not
eat chocolate is because of diabetics and also can be various other reasons that they do not prefer
eating sweet.

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Introduction:

About Consumer Buying Behavior:

Consumer buying behavior is how individuals, groups and organizations select, buy, use
and dispose of goods, services, ideas, or even experience to satisfy their needs and wants. There
are various factors that influence the buying behavior of a person. These factors are:-

Cultural Factors: The growing child acquires a set of values, perceptions, preferences and
behavior through his or her family and other key institutions. Cultural factors are again classified
into sub-cultures and social class. Subcultures include geographical regions, nationalities,
religions and racial groups. Social class are categorized into A1, A2, B1, B2, C, D, E1 and E2,
with A1 being the highest purchase potential and E2 being the lowest.

Social Factors: These factors are based on the reference groups that have direct or indirect
influence on their attitudes or behavior, groups that have direct influence are called the
membership groups and the primary groups are those with whom the person interacts fairly
continuously and informally like the family, friends, neighbors and coworkers.

Personal Factors: the person’s behavior is influenced by personal characteristics. It includes the
age and stage in the life cycle, occupation and economic circumstances and finally the
personality and self-concept.

Buying Decision Process: It is the process of how a consumer decides on buying a particular
product. The consumer first recognizes the problem or the need for the product. Then he searches
for the information based on the product, the information can be collected from his friends,
advertisement, or he can use the product and decide, then comes the evaluation of alternatives-
here the consumer compares the product with the competitors’ product. The consumers include
various factors like, the colour, taste, package, price, quality etc.

In this report I have taken Cadbury chocolate as the product and found out the factors that
have influenced the persons.

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CADBURY
Milk chocolate for eating was first made by Cadbury in 1897 by adding milk powder John paste
to the dark chocolate recipe of cocoa mass, cocoa butter and sugar. By today's standards this
chocolate was not particularly good: it was coarse and dry and not sweet or milky enough for
public tastes.
There was a great deal of competition from continental manufacturers, not only the French, but
also the Swiss, renowned for their milk chocolate. Led by George Cadbury Junior, the Bournville
experts set out to meet the challenge. A considerable amount of time and money was spent on
research and on new plant designed to produce the chocolate in larger quantities.
A recipe was formulated incorporating fresh milk, and production processes were developed to
produce a milk chocolate 'not merely as good as, but better than' the imported milk chocolate'.
Four years of hard work were invested in the project and in 1905 what was to be Cadbury's top
selling brand was launched.

CADBURY INDIA
Cadbury began its operations in 1948 by importing chocolates and then re-packing them before
distribution in the Indian market. After 59 years of existence, it today has five company-owned
manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi
(Himachal Pradesh) and 4 sales offices (New Delhi, Mumbai, Kolkota and Chennai). The
corporate office is in Mumbai.

In the Chocolate Confectionery business, Cadbury has maintained its

undisputed leadership over the years. Some of the key brands are Cadbury Dairy Milk, 5 Star,
Perk, Éclairs and Celebrations. Cadbury enjoys a value market share of over 70% - the highest
Cadbury brand share in the world! Their flagship brand Cadbury Dairy Milk is considered the
"gold standard" for chocolates in India. The pure taste of CDM defines the chocolate taste for the
Indian consumer.

In the Milk Food drinks segment their main product is Bournvita - the leading Malted Food
Drink (MFD) in the country. Similarly in the medicated candy category Halls is the undisputed
leader.

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The Cadbury India Brand Strategy has received consistent support through simple but
imaginative extensions to product categories and distribution. A good example of this is the
development of Bytes. Crispy wafers filled with coca cream in the form of a bagged snack, Bytes
is positioned as "The new concept of sweet snacking". It delivers the taste of chocolate in the
form of a light snack, and thus heralds the entry of Cadbury India into the growing bagged Snack
Market, which has been dominated until now by Salted Bagged Snack Brands. Bytes was first
launched in South India in 2003.
Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over
two decades, it has worked with the Kerala Agriculture University to undertake cocoa research
and released clones, hybrids that improve the cocoa yield.

Company Overview:
Cadbury India is a fully owned subsidy of Kraft Foods Inc. The combination of Kraft
Foods and Cadbury creates a global powerhouse in snacks, confectionery and quick meals. 
With annual revenues of approximately $50 billion, the combined company is the world's second
largest food company, making delicious products for billions of consumers in more than 160
countries. Our core purpose "make today delicious" captures the spirit of what we are trying to
achieve as a business. We make delicious foods you can feel good about. Whether watching your
weight or preparing to celebrate, grabbing a quick bite or sitting down to family night, we pour
our hearts into creating foods that are wholesome and delicious. 

The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K., but the journey
with chocolate lovers in India began in 1948. The pure taste of Cadbury Dairy Milk is the taste
most Indians crave for when they think of Cadbury Dairy Milk. The variants Fruit & Nut,
Crackle and Roast Almond, combine the classic taste of Cadbury Dairy Milk with a variety of
ingredients and are very popular amongst teens & adults. Recently, Cadbury Dairy Milk Desserts
was launched, specifically to cater to the urge for 'something sweet' after meals. Cadbury Dairy
Milk has exciting products on offer - Cadbury Dairy Milk Wowie, chocolate with Disney
characters embossed in it, and Cadbury Dairy Milk 2 in 1, a delightful combination of milk
chocolate and white chocolate. Giving consumers an exciting reason to keep coming back into
the fun filled world of Cadbury.

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Objectives:

The objective of this report is to know the buying behavior of consumers based on
different age groups and to know the various factors that have influenced these various age
groups to buy the same product. This report is based on the buying behavior of consumers
towards Cadbury chocolates based on different age groups. Different age groups have different
factors that influence them to buy the same Cadbury chocolate, these factors can be the cultural
factors, social factors or personal factors. The factors influencing the age group from 10-15 years
can be family, friends and also the need to eat a chocolate, as this is a group of children, they
would like to eat chocolates. While doing the survey many children of this age preferred
Cadbury over other companies, some children didn’t have a specific reason, some said it is
because everybody in their family prefer Cadbury. For this age group the major factor can be the
cultural and the sub-cultural factors influencing their buying behavior. The next age group is 15-
20, the same factors influence their buying behavior. In the same way the factors influencing the
consumers to buy a product is done for all the age groups till the age of 50 years. Once the data
was collected the statistical tool has been used-Coefficient of Variation.

Scope of the report:

The scope of the report is limited only to few people living in Hyderabad and the scope is
limited only to few people. It is also limited only to one company reason being Cadbury being
the major player in the chocolate industry. The report is restricted to the factors influencing the
buying behavior of the consumer towards Cadbury only, and so the scope is not wide enough.

Limitations of the report:

The respondents for each age group are 20 and this cannot be considered to generalize the
study. The respondents may or may not give the correct data. The respondents of the age group
10-15 are very young and they may not know the actual reason or factor influencing their buying
behavior, so we cannot completely rely on the data.

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Methods of collecting the data:
In this report I have prepared a questionnaire to know the factors that have influenced the
people to buy Cadbury, so this is the primary data that is collected. Here I have considered the
age group from 10 years to 50 years, and divided it accordingly, like-10-15 years, 15-20 years
and so on. There is no major difference of the factors influencing the people falling between the
age group 10-15, because here the consumers are children who depend majorly on their parents
or the adults and sometimes friends. The consumers between age group 15-20 also depend on
their family or friends. This age group also depends on their pocket money, their taste and
sometimes their lifestyle. Now the age groups from 20 years to 50 years and above, have various
factors that influence their buying behavior, these factors can be cultural factors, social factors,
personal factors, age and lifecycle, occupation, psychological etc.

Methodology:
Once the questionnaire was prepared it was mailed to friends and family. It consists of
various groups. I had gone in person to the consumers above the age 50 years to find out the
factors that have influenced their buying behavior towards Cadbury. Consumers of this age also
preferred Cadbury over other chocolate companies. The reason or the factors didn’t differ much.
Not many consumers of this age group eat chocolates but, if they did they said they preferred
Cadbury.

Use of Statistics:

The word statistics mean different to different people. To a football fan, statistics are
rushing, passing; to the managers of power station, statistics are the amounts of pollution being
released into the atmosphere . Managers apply some statistical technique to virtually every
branch of public and private enterprise.

In this report I have used Coefficient Variation as a statistical tool to the factors that have
influenced the buying behavior. The standard deviation cannot be the sole basis for comparing
two distributions. If we have a standard deviation of 10 and a mean of 5, the values vary by an
amount twice as large as the mean itself. On the other hand, if we have a standard deviation of 10

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and a mean of 5000, the variation relative to the mean is insignificant. Therefore we cannot know
the dispersion of data until we know the standard deviation, the mean and how the standard
deviation compares with the mean. The Coefficient of Variation is one such relative measure of
dispersion. It relates to standard deviation and mean by expressing the standard deviation as a
percentage of the mean.

In the tables the first column represents the age groups of the consumers, and in the second
column it shows number of consumers from this age group buy Cadbury chocolate, the number
of consumers influenced by a factor that influenced their buying behavior. In this report the
factors considered are Cultural Factors, Social Factors and Personal Factors. Reason for not
considering other factors is, because the product selected for the study is chocolate and these are
the factors that influenced the consumers’ buying behavior.

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Table 1
Number of persons who have chosen Cadbury chocolate in each age group

Comparit Frequenc Cumulative MidVal fX X2 fX2

ive Index y Frequency ue
(x)
(f) (Cf) (X)

10-15 20 20 12.5 250 156.25 3125

15-20 20 40 17.5 350 306.25 6125

20-25 18 58 22.5 405 506.25 9112.5

25-30 19 77 27.5 495 756.25 14368.75

30-35 19 96 32.5 617.5 1056.25 20068.75

35-40 17 113 37.5 637.5 1406.25 23906.25

40-45 15 128 42.5 637.5 1086.25 27093.75

45-50 15 143 47.5 712.5 2256.25 33843.75

50-55 7 150 52.5 367.5 2756.25 19293.75

150 4472.5 11006.25 156937.5

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 Consumers Prefer Cadbury

5%
13%
10%

10-15
10% 15-20
13%
20-25
25-30
30-35
35-40
40-45
45-50
50-55

11%

12%

13%
13%

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Table 2
Number of consumers influenced by the Social Factor (Family, Friends and Co-workers,)in
each age group.

Compariti Frequency Cumulative MidV X2 fX fX2

ve Index Frequency alue
(f)
(Cf) (X)

10-15 16 16 12.5 156.25 200 2500

15-20 19 35 17.5 306.25 332.5 5818.75

20-25 17 52 22.5 506.25 382.5 8606.25

25-30 19 71 27.5 756.25 522.5 14368.75

30-35 15 86 32.5 1056.25 487.5 15843.75

35-40 15 101 37.5 1406.25 562.5 21093.75

40-45 13 114 42.5 1806.25 552.5 14121.25

45-50 11 125 47.5 2256.25 522.5 24818.75

50-55 1 126 52.5 2756.25 52.5 2756.25

126 11006.25 3615 109927.5

Using Statistical Tool: Coefficient Of Variation

Standard Deviation=√∑f(X-x)2/N

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x=fX/n
CV=SD/x
x=mean
x=3615/126
x=28.69
SD=√∑fX2/N-x2
SD=√109927.5/126-(28.69)2
SD=√872.44-823.11
SD=7.02
Coefficient of Variation=(SD/x)*100
CV=(7.02/28.69)*100
CV=24.46%

Influence of Social Factor On the Age Groups

1%
9% 13%
10-15
15-20
10%
20-25
25-30
15%
30-35
35-40
12% 40-45
45-50
50-55
13%
12%

15%

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Table 3
Number of consumers influenced by the Cultural Factor (Preferences, Religions, Status )
in each age group.

Compariti Frequency Cumulative MidV X2 fX fX2

ve Index Frequency alue
(f)
(Cf) (X)

10-15 0 0 12.5 156.25 0 156.25

15-20 1 1 17.5 306.25 17.5 306.25

20-25 1 2 22.5 506.25 22.5 506.25

25-30 0 2 27.5 756.25 0 0

30-35 2 2 32.5 1056.25 65 2112.5

35-40 1 4 37.5 1406.25 37.5 1406.25

40-45 0 5 42.5 1806.25 0 0

45-50 0 7 47.5 2256.25 0 0

50-55 0 9 52.5 2756.25 0 0

9 11006.25 142.5 4487.5

Using Statistical Tool:

Standard Deviation=√∑f(X-x)2/N

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x=fX/n
CV=SD/x
x=mean
x=142.5/9
x=15.83
SD=√∑fX2/N-x2
SD=√4487.5/9-(15.83)2
SD=√498.61-250.58
SD=15.74
Coefficient of Variation=(SD/x)*100
CV=(15.74/15.83)*100
CV=99.43%

Influence of Cultural Factor on the Age Groups

20% 20% 10-15

15-20
20-25
25-30
30-35
35-40
40-45
45-50
20% 50-55

40%

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Table 4:
Number of consumers influenced by the Personal Factor (Personality, Age and Stage in
Life Cycle ) in each age group.

Compariti Frequency Cumulative MidV X2 fX fX2

ve Index Frequency alue
(f)
(Cf) (X)

10-15 0 0 12.5 156.25 0 0

15-20 0 0 17.5 306.25 0 0

20-25 1 1 22.5 506.25 22.5 506.25

25-30 0 1 27.5 756.25 0 0

30-35 2 3 32.5 1056.25 65 2112.5

35-40 1 4 37.5 1406.25 37.5 1406.25

40-45 2 6 42.5 1806.25 85 2172.5

45-50 4 10 47.5 2256.25 190 9025

50-55 6 16 52.5 2756.25 315 16537.5

16 11006.25 715 29858.75

Using Statistical Tool:

Standard Deviation=√∑f(X-x)2/N

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 x=fX/n
CV=SD/x
x=mean
x=715/16
x=44.68
SD=√∑fX2/N-x2
SD=√29858.75/16-(44.68)2
SD=√1866.17-1996.30
SD=11.40
Coefficient of Variation=(SD/x)*100
CV=(11.40/44.68)*100
CV=25.5%

Influence of Personal Factors on the Age Groups

6%
10-15
13% 15-20
20-25
38% 25-30
6% 30-35
35-40
40-45
45-50
13% 50-55

25%

Table 2 CV=24.4%, Table 3 CV=99.43%, Table 4 CV= 25.5%

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 Comparing CV of table 2 and table 3, table 2 CV has more absolute variation and less
relative variation than table 3.

Comparing CV of table 3 and table 4, table 4 CV has more absolute variation and less relative
variation than table 3.

Comparing table 2 and table 4, CV of table 2 has more absolute variation and less relative
variation than table 4.

Conclusion:
The buying behavior for any product depends on various factors even for a small product.
Each person buying the same product will have different factors that influenced them to buy that
particular product. It depends which factor is high or low on influence. From the questionnaire
we can see that the consumers of different ages, have different factors that influences their
buying behavior.

References:

www.Wikipedia.com

www.google.com

Marketing Management-13th Edition-Philip Kotler, Kevin Lane Keller, Abraham Koshy and
Mithileshwar Jha.

Statistics For Management-7th Edition-Richard I Levin, David S Rubin.

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Appendices:

Questionnaire
1. Your age
a. 10-15
b. 15-20
c. 20-25
d. 25-30
e. 30-35
f. 35-40
g. 40-45
h. 45-50
i. 50-55

2. Do you like Cadbury Chocolate

a. Yes
b. No

3. What influences you to buy Cadbury Chocolate

a. Family
b. Friends
c. Co-workers
d. Status
e. Mood
f. Personaliy
g. Others
4. Does advertisement also Influence you?
a. Yes
b. No
5. On what basis do you buy the chocolate?
a. Quality
b. Price
c. Variety
6. Does eating Cadbury lift your spirits?
a. Yes
b. No
7. How frequently do you buy the chocolate?
a. Once a week
b. Once in a month
c. Once in three months

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 d. Others
8. If not Cadbury then?
a. Amul
b. Nestle
c. Others
9. Are you happy with Cadbury?
a. Yes
b. No
10. Your Name

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