Market Research Proposal

Launch of White chocolate by Cadbury

Submitted to
Prof. Satya Bhushan Dash

Submitted by
GROUP 1A
Gaurav Singh PGP25017
Hariharan D PGP25018
Himanshu Garg PGP25019
Karthik S PGP25021
Girish Sahani PGP25042
Saradha NandhiniPGP25047

Indian Institute of Management

Indian Institute of Management
Table of Contents
Introduction...........................................................................................................3

Management Decision Problem.............................................................................3

Marketing Research Problem.................................................................................3

Research Objectives..............................................................................................4

Research Design and Methodology........................................................................4

Research Tools......................................................................................................8

Research Questions and Hypotheses.....................................................................9

Questionnaire......................................................................................................10

Data Analysis Plan...............................................................................................16

Appendix 1...........................................................................................................18

Appendix 2...........................................................................................................19

Appendix 3...........................................................................................................19

Appendix 4...........................................................................................................20
March, 2010
Appendix 5...........................................................................................................22

Appendix 5

Page Market Research Proposal

2
Indian Institute of Management
Introduction
The chocolate industry in India as it stands today is dominated by two companies,
both multinationals. The market leader is Cadbury with a lion's share of 70
percent. The company's brands (Five Star, Gems, Éclairs, Perk, Dairy Milk) are leaders
their segments. Till the early 90s, Cadbury had a market share of over 80 percent, but
its party was spoiled when Nestle appeared on the scene. The latter has introduced
its international brands in the country (Kit Kat, Lions), and now commands
approximately 15 percent market share. The Gujarat Co-operative Milk Marketing
Federation (GCMMF) and Central Arecanut and Cocoa Manufactures and Processors
Cooperative (CAMPCO) are the other companies operating in this segment.
Competition in the segment will get keener as overseas chocolate giants Hershey's
and Mars consolidate to grab a bite of the Indian chocolate pie.
Cadbury India is a food product company with interests in Chocolate Confectionery,
Milk Food Drinks, Snacks, and Candy. Cadbury is the market leader in Chocolate
Confectionery business with a market share of over 70%. Some of the key brands of
Cadbury are Cadbury Dairy Milk, 5 Star, Perk, Éclairs, Celebrations, Temptations, and
Gems. In Milk Food drinks segment, Cadbury's main product - Bournvita is the leading
Malted Food Drink in the country. Cadbury’s flagship brand Cadbury Dairy Milk is a
brown milk chocolate which is being positioned to cater to the needs of people in all
age groups. Cadbury Dairy Milk is marketed with number of brand extensions like

– Dairy Milk Lite

– Dairy Milk Fruit n Nut
– Dairy Milk Silk
– Dairy Milk Wowie
– Dairy Milk shots
– Dairy Milk Temptations
– Dairy Milk Crackle
– Dairy Milk Roasted Almond
– Dairy Milk Whole Nut

Despite having a wide brand portfolio Dairy Milk does not have a variant in the white
chocolate or milk chocolate segment in India. The white chocolate segment in India is
being led by Milky Bar, which is the flagship brand for Nestle chocolates in India.
Though Dairy Milk Wowie has some while chocolate in it, Dairy Milk has not been able
to capture the market share of Milky bar using Wowie.

Page Market Research Proposal

3
Indian Institute of Management
Management Decision Problem
The management decision problem faced by the management is

“Whether to launch a white chocolate variant of Dairy Milk to capture

further market share in chocolate industry”

Marketing Research Problem

The marketing research problems are

1. To analyze the need and demand for white chocolate compared to brown
chocolate
2. To identify the demographic and psychographic profiles of the target
consumers who are the current consumers of chocolate
3. To identify the drivers for sales of chocolate (white chocolate in particular)

Research Objectives
1. To understand the profile of current users and non-users of chocolate
customers

2. To understand the buying behaviour of the various age groups in purchasing

and consuming chocolates

3. To determine consumers mindset to current chocolate brands and scope for

new variants of chocolate

4. To determine the impact of pricing and promotion as a driver in purchase of

chocolates

Research Design and Methodology

As shown by the MDP and MRP obtained via the FGD and in depth interviews the
primary objective of Cadbury India Ltd is to explore the opportunity for a new
chocolate variant( white chocolate for e.g.) in the confectionary market. At present a
very small percentage of the confectionary market is white chocolate based.

Phases of the Research

The research will be carried out in the following distinct phases:

Page Market Research Proposal

4
Indian Institute of Management
1. Literature review to determine various factors influencing the selection of
chocolate and their consumption
2. Separate Focus Group Discussions of target users and prospective users (currently
non users) of brown and white chocolates to gain insights into differences between
preferences of users and non-users of chocolates.
3. In-depth interviews to determine consumers’ perception of the products and the
latent needs required to be satisfied by the new product
4. Research questions and hypotheses created by the preceding steps and research
tool (questionnaire) to be prepared and pre tested
5. Create a sampling plan, determine sample size and conduct survey using methods
mentioned in the survey plan section.
6. Analyze data obtained from survey in order to establish the opportunity and
expected product features.
7. Make recommendations on the basis of the research findings.

Exploratory Research
Market Share
Cadbury( Dairy Milk, Perk, Gems, 5 Star, Celebrations, Bytes, Dairy Milk
Éclairs, Éclairs Crunch): 70%
Nestle: 15%
Others:
GCMMF
CAMPCO
HLL
ITC

Per Capita Chocolate Consumption in India: 20gms per person

Annual consumption: 22,000 tons

The market size of chocolates was estimated to be around 16,000 tonnes, valued
around Rs. 4.16 billion in 1998. Volume growth which was over 20% pa in the 3 years
preceding 1998, slowed down thereafter. Both chocolate and sugar confectioneries
have abysmally low penetration levels, in fact, even lower than biscuits, which reach
56 per cent of the households. Market growth in the chocolate segment has hovered

Page Market Research Proposal

5
Indian Institute of Management
between 10 to 20%. In the last five years, the category has grown by 14-15% on an
average and will expect it to continue growing at a similar rate in the next five years.
The market presently has close to 60mn consumers and they are mainly
located in the urban areas. Growth will mainly come through an increase in
penetration as income levels improve. However, almost all of this consumption is
in the cities, and rural India is nearly ‘chocolate-free’. But the fact is that three
quarters of Indians live in Rural Areas. “Average summertime temperatures reach 43
degrees Celsius in India. Chocolate melts at body temperature of 36 degrees.”
Per capita consumption of chocolates in India is minuscule at 20gms in India as
compared to around 5-8 kg and 8-10 kg respectively in most European countries.
Awareness about
Chocolates are very high in urban areas at over 95%.
Growth of other lifestyle foods such as malted beverages and milk food have
actually declined by 3.7 per cent and 11.7 per cent, however the
CHOCOLATES continue to grow at the rate of 12.6%.

Chocolate Consumption Structure - 2004

Chocolate & Confectionery Market of India – 2004

Page Market Research Proposal

6
Indian Institute of Management
Source: AC Nielsen ORG Marg report

Market Size (by value & by volume)

The Indian chocolate market is valued at Rs. 650 crore (i.e. Rs. 6.50 billion) a year.
The Indian chocolate bazaar is estimated to be in the region of 22,000-24,000 tonnes
per annum, and is valued in excess of $ 80 million.
Chocolate penetration in the country is a little over 4 percent, with India's metros
proving to be the big draw clocking penetration in excess of 15 percent. Next comes
the relatively smaller cities/towns where consumption lags at about 8 percent.
Chocolates are a luxury in the rural segment, which explains the mere 2 percent
penetration in villages.
The market presently has close to 60mn consumers and they are mainly located in
the urban areas.

Focus Group Discussions

Separate focus group discussions can be conducted for users and non-users of
chocolates. The participants should be carefully selected from a pool of existing
consumers and potential consumers and also consumers who are against chocolate.
Such discussions can reveal useful insights into the important criteria which are used
by consumers while selecting chocolate. Also drivers/ barriers to the purchase of
chocolates will be revealed from such discussions. (Check Appendix 1)

In-depth Interviews
In-depth interviews with users and non-users of chocolate will provide information
about consumers’ perceptions about the products and their latent and secret needs.
The interviewer will be able to determine the key purchase drivers for purchase of
chocolate. The interview will also provide information about consumers’ various types
of usage

Sampling Design

Page Market Research Proposal

7
Indian Institute of Management
Define Target Population

The target audiences for the MR are divided on the basis of age, gender, marital
status, etc into various groups. They all are from Sec-A, Sec-B households in tier I and
tier II cities.

1. Children under 10 years of age

2. Teenagers from 12-19 years of age
3. Young adults from 20-28 years of age
4. Adults from 30-45 years of age
5. Middle aged people over 45 years of age

Also among these audiences is divided on the basis of gender, marital status, number
of children, educational level etc.

Determine Sampling Frame

The sampling frame used will be the household list obtained from the city corporation
or alternatively the mobile numbers obtained from a telecom company depending on
the survey method chosen

Select a Sampling Technique

We would pick a Stratified Random Sample which would meet our criteria in terms of
gender, age and social status.

The strata are mentioned in the definition of the target audience. There are a total of
5 strata. The variables used to divide the population into strata are age, gender,
marital status, number of children, educational level.

Determine Sample Size

All strata has to have equal no of respondents ( nh ) and ∑ nh = N(total sample size)

Sample size is calculated using the formula

nh = Z2 * p(1-p)/e2
Here, Z = the abscissa of the normal curve that cuts off an area at the tails (1 – the
desired confidence level, e.g., 95%) = 1.96 (from Statistical table)
p = estimated proportion of an attribute that is present in the population = 0.9
(proportion of chocolate users as obtained from FGD and in depth interviews)

Page Market Research Proposal

8
Indian Institute of Management
e = desired level of precision = 5%
Hence, SS = (1.96)2 * 0.9 * 0.1 / (0.05) = 138.2976 ~= 140
2

Execute the survey of the sample

The surveying methods intended to be used are

1. Mall intercept interviews

2. Internet surveys
3. In-Home interviews

Research Tools
For this purpose the research tool intended to be utilised is the questionnaire attached
as Appendix A. the main objectives of the questionnaire is to capture the following
data from the respondent

i) Demographic details

ii) Classification of users and non users of chocolate

iii) Frequency of chocolate consumption or purchase

iv) Preferences of chocolate consumers amongst current variants

v) Pricing effects on the current customers and consumers of chocolate

vi) Promotional effects on the current consumers and customers of chocolate

vii) Non users and the reasons behind their not consuming chocolate

viii) Brand awareness and brand loyalty of current consumers

ix) Consumer’s preference for new variants of chocolate

Page Market Research Proposal

9
Indian Institute of Management
Research Questions and Hypotheses
RQ1: What are the consumption and preference patterns of various age
groups in chocolates?
H0: Women consume more chocolate than men in the age group of greater
than 20

H1: Unmarried adults of age greater than 20 years consume more chocolate
than married adults

H2: Children below the age group of 10 years prefer white (sweeter) chocolate
over brown chocolates.

H3: Teenagers (Age groups – 13 to 20 years) have changing preferences in

chocolates and look out for newer varieties

H4: Young Adults (20-28) working in the IT sector consume chocolate as a

energy snack or as a quick meal

RQ2: What are the features in the product that are drivers/barriers in
consuming the product?
H5: Adults of age groups (30 – 45) are concerned about sugar levels and hence
do not prefer chocolates

H6: Adults (20-28) years look at calorie levels as a deciding factor

H7: Children of age less than 10 years prefer chocolates which have shapes and
different colors embedded (like cartoon characters, animals, pets, etc.)

H8: Children from age groups (less than 15 years) prefer bar chocolates to slab
form of chocolates

H9: Adults of age greater than 20 years perceive wafered chocolate as a

healthier and tastier variant to normal chocolates

H10: Children from age groups (less than 15 years) prefer add ons in the
chocolate (nuts etc.) over normal variety

RQ3: How does pricing impact various customer segments and their buying
patterns?
H11: Parents with children of age group less than 10 years do not care about
the pricing of the chocolate

Page Market Research Proposal

10
Indian Institute of Management
 H12: Frequency of buying chocolates is more with teenagers of age groups 13
to 20 years

H13: Teenagers of age groups 12 to 20 years think more on spending their

pocket money on a single big SKU of chocolate than on multiple small variants

H14: Adults of age groups of 24 – 30 years do not mind spending a premium

price for special chocolate variants (like Cadbury Bourneville, Dairy Milk Silk, etc)

RQ4: What are the promotion techniques popular among customers for
chocolate in the current market?
H15: Children of age groups less than 10 years relate to jingle advertisements
rather than print advertisements

H16: Children below the age group of 10 years prefer attractively packaged
chocolates (glittering packages of bright colors like gold, silver, yellow, purple)

H17: Peer group advice (opinion leaders) exert more buying influence than
family in case of young adults (20-28 years)

Questionnaire

1. Demographic Details
1.1 Age Groups
Less than 12 years

12 to 20 years

20 to 30 years

30 - 45 years

Greater than 45 years

1.2 Gender

Male Female

Page Market Research Proposal

11
Indian Institute of Management
 1.3 Education Level

1 - Illiterate

2 - Primary Education (5th Std)

Junior High School (10th std)

Secondary Education (12th Std)

Undergraduate/ Diploma

Post Graduation

1.4 Occupation

Student
Private Service
Software Industry
Business
Government Service
Unemployed

1.5 Marital Status

Single Married

1.6 If married, how many children do you have?

Less than 1
1 – 3 children
Greater than 3 children

2. Users of Chocolate
2.1Do you consume chocolates?
Yes No

(If the answer is Yes Proceed with Question 2.2 or else directly proceed to
Section 4)
2.2Which are the chocolate varieties that you generally purchase?

Page Market Research Proposal

12
Indian Institute of Management
 --------------------------------------------------------------------------------------
2.3Do you buy same varieties of chocolates every time?
Yes No
2.4What are the kinds of chocolates do you prefer to eat?
Brown Chocolate ( Dairy Milk, 5 Star, Bar One)

White Chocolate ( Milky Bar, Wowie)

Waffered Chocolate ( Kit Kat, Milky Bar Choo, Perk, Munch)

Dark Chocolates ( Bournville)

Mixed varieties

Others

If Others Please Specify ______________________________

2.5How often do you consume chocolate in a week?
Less or equal to one time
Two to four times a week
Greater than 4 times a week

3 Product Features/Attributes
3.1Please rank the following attributes of chocolates from 1 to 8 according to their
importance levels ( Rank 1 being the Most Important and Rank 8 being the
Least Important)
Taste
Purity
Packaging
Price
Healthy/ Nutritious
Add Ons (Nuts, Wafers, etc.)
Brand Image
Flavour
3.2Please rank the following chocolate brands on the attributes
(Rank 1 denotes the highest Rank and Rank 7 the lowest)
Attributes Chocolate Brands

Dairy 5 Bournevil Milky Perk Kit Bar

Page Market Research Proposal

13
Indian Institute of Management
 Milk Star le Bar Kat One

Taste

Purity

Packaging

Price

Health/Nutritio
n

Flavours

Add Ons
(Nuts, Wafers,
etc.)

Brand Image

3.3What kind of chocolates do you buy often?

Toffees (Éclairs, Coffee Bite)
Slabs (Diary Milk, Milky bar)
Bars (Bar One, 5 Star)
Wafers (Kit Kat, Munch, Perk)
3.4Please rank the following chocolate variants according to the attributes they
provide
(Rank 1 denotes highest Rank 4 denotes the Lowest)
Attributes
Toffees Slabs Bars Wafers

Taste

Purity

Packaging

Price

Health/Nutrition

Flavours

Page Market Research Proposal

14
Indian Institute of Management
 Add Ons (Nuts,
Wafers, etc.)

Brand Image

3.5Are you happy with current variants of chocolate available in the market?
Yes No
3.6If new flavours of chocolate are introduced would you be willing to try them?
Yes No
3.7Would you be willing to try a new variant of white chocolate?
Most Willing
Willing
Neutral
Unwilling
Will not try
3.8Do you often pick up chocolates when you purchase other items?
Yes No
3.9What influenced you to buy the above mentioned brand(s) of chocolates?
Advertising
Word of Mouth
Attractive Package
Shop Display
Family
Friends
Others Please Specify
_______________________________
3.10How would you like your chocolate to be packaged?
Golden Package
Silver Package
Bright Colours (Yellow, Purple, Red)
Packaging does not matter
3.11Would you like having your chocolates in different shapes and sizes?
Yes No
3.12If you would what are the different shapes and sizes?
Cartoon Characters embedded
Animal shapes
Celebrity faces

Page Market Research Proposal

15
Indian Institute of Management
 Famous buildings
Different Colours
Others
Please specify ____________________________________________
3.13 What do you remember most in the chocolate advertisements?
Jingles/ Songs/ Tunes

New variants introduced

Packaging

Celebrities

Story Line/ Theme

3.14Which of the following chocolate units do you generally prefer buying?

Greater than Rs. 20
Rs. 20
Rs. 15
Rs. 10
Rs. 5
Rs. 2 and Re 1
3.15If prices of these chocolate units are raised, would you still be happy to
purchase them?
Yes No
3.16How important is the price of a single chocolate unit to you on a scale of 1 to
5?
Most Important 1 2 3 4 5 Least Important
3.17On a single purchase how many chocolate units do you typically buy?
One or Less than one
Two to four units
Super Saver packs
Chocolates with limited offers bought in higher numbers
Small size chocolates in bulk
3.18If your preferred chocolate brand(s) is not available in the store what would
you consider doing?

Page Market Research Proposal

16
Indian Institute of Management
 Move to another shop to find the same brand of chocolate

Buy another variant of the same brand

Buy another brand of chocolate

Leave the idea of buying chocolate

4 Non Users – Reasons

4.1 Have you regularly consumed chocolate before deciding to stop
consuming?
Yes No
4.2Choose your reasons for stopping to consume chocolates
Doctor’s Advice
Taste differences
Diabetic traits
Calorie Consciousness
Dental Problems
Stopped liking chocolates
Others, please specify __________________________________
4.3 Would you consider consuming chocolates again?
Yes No
4.4If yes, rate the importance of each of the following parameters in a new white
chocolate on a scale of 1 to 5
Attributes 1 2 3 4 5

Taste

Less
Calories

Calcium
compoun
d

Sugar
Free

Purity

Page Market Research Proposal

17
Indian Institute of Management
 4.5Do you currently purchase chocolates for someone else?
Yes No
4.6If yes, whom do you purchase it for?
Spouse
Girl friend/ Boy friend
Friends
Children
Other, Please Specify ________________________

If the answer is for Children/Friends/Spouse continue questioning full of Section

3

End of Questionnaire

Page Market Research Proposal

18
Indian Institute of Management
Data Analysis Plan
Research Question Variabl Description Data Analysis
objective No e code of plan
Information

1. To understand
the profile of
current users and
non-users of Demographic Frequency count,
chocolate profile of the cumulative
customers 1 1-6 consumer percentage

Users/Non users
of chocolate - Frequency count,
Frequency of cumulative
2 7-15 Usage percentage

Preferences of
chocolate
consumers and Frequency count,
3.1 - 3.8 16-119 customers ANOVA

Frequency count,
Reasons for not cumulative
4.1 - 4.4 149-182 using chocolates percentage

Research Question Variabl Description Data Analysis

objective No e code of plan
Information

Page Market Research Proposal

19
Indian Institute of Management
2. To understand
the buying
behaviour of the
various age groups
in purchasing and Age groups of Median rank of
con-suming users/ non users attributes,Cross tab
chocolates 1.1 - 1.4 1-4 of chocolate analysis

Pricing and
packaging criteria
for users to buy
3.13 - 3.18 138-148 chocolates Stepwise regression

Non users buying

chocolates for Frequency
4.5 - 4.6 183-188 others Distribution

Research Question Variabl Description Data Analysis

objective No e code of plan
Information

3. To determine
consumers mindset
Consumption
to current chocolate preferences of
brands and scope current chocolate
for new variants of brands existing in
chocolate 3.1 - 3.4 16-115 the market Correlation

Assessment of
new opportunities
3.5 - 116- in the chocolate Frequency
3.7,3.18 118,148 market Distribution

Page Market Research Proposal

20
Indian Institute of Management
 Assement of
chocolate needs
for current non-
4.3 - 4.4 157-182 users Cross Tab Analysis

Research Question Variabl Description Data Analysis

objective No e code of plan
Information
4. To determine the Impact of
impact of pricing and promotion and
promotion as a driver new features on
in purchase of chocolate Correlation,Cross tab
chocolates 3.9 - 3.13 120-138 consumers analysis

Assement of price
points and pricing
needs of
consumers and Crosstab
3.14 - 3.16 107-110 customers analysis,ANOVA

Page Market Research Proposal

21
Indian Institute of Management
 Page Market Research Proposal
22
Indian Institute of Management
 Page Market Research Proposal
23
Indian Institute of Management
Variable Description Q.No. Scale Type
Nos.

1 to 6 Demographic information of 1 Nominal

respondent

7 to 15 Usage Information of chocolate 2 Nominal

16 to 23 Importance rank of eight attributes 3.1 Ordinal

in a chocolate

24 to 79 Importance rank of eight attributes 3.2 Ordinal

in choosing among 7 brands of
chocolate

80 to 83,131 to Form factors of chocolate 3.3, 3.11, Nominal

137 3.12

84-115 Importance rank of eight attributes 3.4 Ordinal

in choosing among 4 form factors

116 to 118 Market opportunity for new variant 3.5, 3.6, 3.7 Nominal

119 Impulse purchase decisions 3.8 Nominal

120 to130,138 Promotion of chocolate 3.9, 3.10, Nominal

3.13

139 to 145 Price senstivity in chocolate 3.14, 3.15 Nominal

purchases

146 Price senstivity in chocolate 3.16 Interval

purchases

147 Preference among SKU's 3.17 Nominal

148 Brand loyalty status 3.18 Nominal

149 Prior usage status if any for Non 4.1 Nominal

user

150 to 156 Reason for non usage 4.2 Nominal

157 Potential for usage by non users 4.3 Nominal

158-182 Ranking of Expected benefits by nn 4.4 Ordinal

users in new variant

183 to 188 Purchase by non users for others 4.5,4.6 Nominal

Page Market Research Proposal

24
Indian Institute of Management
Appendix 1
Code Sheet

Page Market Research Proposal

25
Indian Institute of Management
Appendix 2

Appendix 3

Page Market Research Proposal

26
Indian Institute of Management
Appendix 4
Focus Group Discussions: Group Size = 6
Group Size Age Range Occupation Education Gender
level

1 22 Student Graduate Male

2 24 Student Graduate Female

3 23 Student Graduate Male

4 26 Student Post Female

Graduate

5 25 Student Graduate Male

6 24 Student Graduate Male

Initial Topic: Liking of chocolates and choosing among various chocolate

brands
The group discussed their preferences for chocolate over other snack foods to begin
with. Then the discussion turned to various brands of chocolates and their perceived
benefits. The issue of brand loyalty was discussed upon. The topic was then diverted
to the different types of usage of chocolates as a gift, celebratory occasions, energy
snack etc. Then the group discussed the various features they like in the current
Cadbury dairy milk and its competitors and their latent needs. Finally the various ad
campaigns were discussed and the recall tested with a short quiz. The group then
discussed their preferences for white chocolates compared to brown chocolates and
discussed possible new features for the proposed new product.

Key Findings from the discussion

Product
• White chocolate is a sweeter alternative to brown chocolate
• Dark chocolate was a considered as a premier chocolate
• Chocolate considered as a source of quick energy
• Add ons in chocolates are preferred
• Chocolates ranked no 1 as an option for gifting

Page Market Research Proposal

27
Indian Institute of Management
Price
• Price was not considered an option
• Premium chocolates were preferred ahead of normal chocolate despite high
price differential

Promotion
• Brand ambassadors were not a primary source of influence
• TV ads were the major drivers of buying influence
• Attractive packaging did not matter

People
• Health consciousness was not a deciding factor among males
• Ladies felt chocolate induced weight gain

Focus Group Discussions: Group Size = 7

Group Size Age Range Occupation Education Gender
level

1 9 Student Primary Male

School

2 10 Student Primary Female

School

3 8 Student Primary Male

School

4 10 Student Primary Female

School

5 9 Student Primary Male

School

6 10 Student Primary Male

School

7 10 Student Primary Male

School

Page Market Research Proposal

28
Indian Institute of Management
Initial Topic: Liking of chocolates and choosing among various chocolate
brands
The groups of children were offered different brands of brown chocolate and were
asked to choose their favourite and reasons were asked for their selection. The
reasons given were colourful attractive packaging which they play with and sweet
taste. Add ons were not considered much. High brand recall was present for CDM
more than nestle. Milky bar was chosen when offered and reasons given were its full f
milk which indicated an effective reach of milky bar ads. Respondents were asked to
name advertising jingles and brand ambassadors and Amitabh Bachchan enjoyed a
huge level of popularity.

Key Findings from the discussion

Product
• White chocolate is full of milk
• Cadbury chocolate has better looks
• Chocolates in bar shapes was preferred
• Add ons in chocolates are not significant

Price
• Parents usually buy them small SKUs.

Promotion
• Brand ambassadors were a primary source of influence
• Attractive packaging did matter

People
• The more sweet the better
• Chocolate is considered as birthday celebrations and gifts.

Appendix 5
In Depth Interviews

The structure of the interview follows the flowchart given above.

Interviewee Details: Male, 34 years, Married, Post Graduate, 2 kids

The interviewee is a chocolate user from his childhood. The interviewee considers
white chocolate to be a healthier alternative to brown chocolate because of the
calcium content. He buys chocolate for his kids twice a week and to reward them for

Page Market Research Proposal

29
Indian Institute of Management
good grades. He also gifts chocolate for occasions. He believes price doesn’t play a
part in his decision making. He is brand conscious and makes a store choice rather
than a pre choice.

Interviewee Details: Female, 23 years, Single, Graduate

The interviewee is also a chocolate user although in her child hood she wasn’t allowed
by her parents to eat chocolate due to dental braces. The interviewee is indifferent
towards white chocolate and is price insensitive. She buys chocolates as an impulse
purchase and to celebrate occasions. She considers add ons as a non essential part of
chocolates. She is brand indifferent and buys chocolates once a week on average.

Interviewee Details: Male, 40 years, Married, Graduate, 2 kids

The interviewee is a chocolate non user due to health reasons although he will
consume if a sugar free variant comes up. The interviewee is against white chocolate
due to high sugar content and is price insensitive. He prefers nutritious chocolates for
his kids and buys chocolates for them very rarely.

Key Learning’s
• Parents prefer healthier versions of chocolates for their kids and they are willing
to pay a price premium for that.
• Price doesn’t play a part in chocolate consumption
• In recent years chocolate has gone from being just a snack to a gift, a
celebratory purchase and an energy snack.
• TV ads were the major drivers of buying influence
• There is very little brand loyalty

Page Market Research Proposal

30
Indian Institute of Management
Manageme Marketing Research Hypotheses Referen
nt Decision Research Questions ce
Problem Problem
Transcri
pt
Whether to H0: Women consume Focus GD 1
launch a more chocolate than
white men in the age group
chocolate of greater than 20 Focus GD 1
variant of H1: Unmarried adults
Dairy Milk to of age greater than 20
capture years consume more Focus GD 2
further chocolate than
market share married adults
in chocolate To analyze
H2: Children below the
industry the need and RQ1: What age group of 10 years
In-depth
demand for are the prefer white (sweeter)
Interview 1
white consumption chocolate over brown
chocolate patterns of chocolates.
compared to various groups
in chocolates? H3: Teenagers (Age Focus GD 1
brown
groups – 13 to 20
chocolate years) have changing
preferences in
chocolates and look
out for newer varieties

H4: Young Adults(20-

28) working in the IT
sector consume
chocolate as a energy
snack or as a quick
meal

To identify RQ2: What H5: Adults of age In-depth

Page Market Research Proposal

31
Indian Institute of Management
 the are the groups (30 – 45) are Interview 3
demographic features in the concerned about sugar
and product that levels and hence do
psychographi are not prefer chocolates Focus GD 1
drivers/barrier
c profiles of H6:Adults (20-28)
s in
the target years do not look at
consuming the
consumers product? calorie levels as a Focus GD 2
who are the deciding factor
current
H7: Children of age
consumers of
less than 10 years
chocolate prefer chocolates
which have shapes
and different colours Focus GD 2
embedded (like
cartoon characters,
animals, pets, etc.)
Focus GD 1
H8: Children from age
groups (less than 15
years) prefer bar
chocolates to slab
form of chocolates Focus GD 2

H9: Adults of age

greater than 20 years
perceive wafered
chocolate as a
healthier and tastier
variant to normal
chocolates

H10: Children from

age groups (less than
15 years) do not
prefer add ons in the
chocolate(nuts etc.)
over normal variety

Page Market Research Proposal

32
Indian Institute of Management
 To identify H11: Parents with In-depth
the drivers children of age group Interview 1
for sales of less than 10 years do
chocolate not care about the
pricing of the In-depth
(white
chocolate Interview 1
chocolate in
particular) H12: Frequency of
buying chocolates is
more with teenagers Focus GD 1
of age groups 13 to 20
RQ3: How years
does pricing H13: Teenagers of age
impact various groups 12 to 20 years
customer Focus GD 1
think more on
segments and spending their pocket
their buying money on a single big
patterns? SKU of chocolate than
on multiple small
variants

H14: Adults of age

groups of 20 – 30
years do not mind
spending a premium
price for special
chocolate variants (like
Cadbury Bournville,
Dairy Milk Silk, etc)

RQ4: What H15: Children of age Focus GD 2

are the groups less than 10
promotion years relate to jingle
techniques advertisements rather
popular than print
among advertisements Focus GD 2
customers for
chocolate in H16: Children below
the current the age group of 10

Page Market Research Proposal

33
Indian Institute of Management
 years prefer
attractively packaged
chocolates (glittering
packages of bright Focus GD 1
colours like gold,
silver, yellow, purple)
market?
H17: Peer group
advice (opinion
leaders) exert more
buying influence than
family n case of young
adults (20-28 years)

Page Market Research Proposal

34
Indian Institute of Management