mbr project kashaff (1)

8/13/2019 MBR Project Kashaff (1)

1/66

Methods in Business Research 0

Kashaf Ud Duja Ali | Muhammad Osama Sakha |Mohammad

Shehmir | Muhammad Furqan Tamoor | Usman Azam |

Mohammad Ali Iqbal

Methods in Business Research

Submitted to: Ms. Nida Aslam

Fall 2013

Candyland


2/66


Table of Contents

About the Research ................................................................................................................................4

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

Research Questions ................................................................................................................................4

Current Corporate Conditions ................................................................................................................4

Overview of the Opportunity.................................................................................................................5

Significance of the Opportunity .............................................................................................................5

Limitations of Research ..........................................................................................................................6

Research Design..................................................................................................................................... 6

Type of Research ................................................................................................................................. 6

Sample and Size .................................................................................................................................. 7

Secondary Data Collection .................................................................................................................. 7

Primary Data Collection ...................................................................................................................... 7

Data Categorization ............................................................................................................................ 7

Data Analysis ....................................................................................................................................... 8

Research Methods and Tools .............................................................................................................. 8

Data Gathered ........................................................................................................................................ 9

Analysis of Data ......................................................................................................................................9

Chi-square Testing ..................................................................................................................................9

Binomial Testing ...................................................................................................................................10

Blind Tests.............................................................................................................................................16

Graphs ...................................................................................................................................................16

Inferences and Findings.......................................................................................................................17

From Surveys ..................................................................................................................................... 18

From Retailer Interviews ................................................................................................................... 19

From Blind Tests ................................................................................................................................ 20

Recommendations...............................................................................................................................20

Appendix A: Literature Review ............................................................................................................24

Appendix B: Definitions.......................................................................................................................28

Socioeconomic Classes ...................................................................................................................... 28

Stores ................................................................................................................................................ 29

Chocolates ......................................................................................................................................... 29

Appendix C: Questionnaires................................................................................................................30

Market Survey ................................................................................................................................... 30


3/66


Retailer Interview .............................................................................................................................. 33

Focus Group Guide ............................................................................................................................ 35

Appendix D: Snapshots of Data Gathered ...........................................................................................37

Customer Survey ............................................................................................................................... 37

Data from Focus Group ..................................................................................................................... 42

Appendix E: Transcribes and Complete Responses.............................................................................44

Focus Group Transcripts ................................................................................................................... 44

Blind Tests ......................................................................................................................................... 65


4/66


A c k n o w l e d g e m e n t

We would like to take this opportunity to express our gratitude to Ms. Nida Aslam, for being

a constant source of help, encouragement and feedback, and for guiding the group when itcould not find (and later, decide on) a project. Thank you also, for the counselling, the

extensions, and the in-person reviews of the initial report.

We would also like to thank Anum Baig, the Teaching Assistant for the course, for the in-

depth tutorials and feedback. We literally could not have conducted this research without the

continuous monitoring, evaluation and guidance she provided.

Last but not least, we are obliged to Candyland and Mr. Saad Ahmed, our contact person for

this project, for the valuable information and feedback provided to us for the facilitation of

this research. We are grateful for their cooperation during the project.

Kashaf Ud Duja Ali

Mohammed Shehmir

Muhammad Osama Sakha

Mohammad Furqan Tamoor

Usman Azam

Mohammad Ali Iqbal

BBA V

Fall 2013


5/66


A b o u t t h e R e s e a r c h

This project is being undertaken for Candyland, which wants to enter the milk chocolate

market in Pakistan. It was tailored to the companys needs, in light of discussions with Mr.

Saad Ahmed. The research supervisors were Nida Aslam, Assistant Professor at the Instituteof Business Administration, Karachi; and Anum Baig, Teaching Assistant for the course,

Methods in Business Research, at the same institute.

R e s e a r c h O b j e c t i v e s

This research project has the following research objectives:

To explore the Pakistani chocolate market for consumers aged 8-21 years, in terms of

opportunities, problems and consumer taste preferences.

To study the viability of Candyland as an entrant in the milk chocolate market for

consumers aged 8-21, and the optimal price range for a chocolate bar in this target

segment

To offer recommendations regarding Candylands current chocolate products and

associated strategies, based on insight gleaned through the research

R e s e a r c h Q u e s t i o n s

How often does the target segment buy chocolates?

What kinds of chocolates are bought, in terms of

o Taste

o Fillings

o Price

Which factors associated with the chocolate itself influence the decision-making

process, and to what extent?

Who are the major players in the Pakistani milk chocolate market?

How is Candylands current chocolate portfolio performing, in general?

C u r r e n t C o r p o r a t e C o n d i t i o n1

Ismail Industries Ltd. was incorporated as a public limited company in 1989. The company

manufactures high quality confectionery products under the brand name Candyland. In 2002,

they acquired a biscuit company from IBL (Meiji) and expanded their portfolio into biscuits

under the brand name BISCONNI. With increasing competition from small-scale

manufacturers, in 2003 they launched FIRST, another confectionery company, to cater to

1Based on information provided by the contact person, Mr. Saad Ahmed


6/66


7/66


(e.g. Top Milk by Mitchells), but their market share and quality are both minimal. Therefore,

this segment presents a lucrative opportunity for Candyland to capture this market from a

single player, instead of competing with several ones.

Secondly, there has been a trend observed in Pakistani children, teenagers and young adults,to purchase chocolates as gifts or to distribute, on occasions such as birthdays. If Candyland

can capitalize on this trend by offering a relevant product, it can expand its sales in urban

areas.

Finally, an initial response survey found that consumers feel constrained in their choice for a

single milk chocolate offering, Dairy Milk. It was discovered that these consumers would be

willing to give a new milk chocolate brand a try, provided it offers good quality.

Therefore milk chocolate presents a huge market which, coupled with Candylands historic

presence and extensive product ranges, presents a significant and lucrative opportunity.

L i m i t a t i o n s o f t h e R e s e a r c h

The findings of this research are limited to urban Karachi, because time and financial

constraints meant the research could not cover rural areas, or any other city.

The result also does not account for the taste preferences and buying behaviour of consumers

from SECs D and E, because these were hard to locate, and hence not surveyed or

interviewed.

For the electronic survey, more consumers from SEC A were surveyed, as opposed to

consumers from SECs B and C, due to time constraints. This is reflected in the high standard

deviation, for the preferred price range of chocolate.

R e s e a r c h D e s i g n

Type of ResearchThis is an exploratory business research, on the consumption of chocolate bars by 8 - 21 year

olds in Pakistan. It aims to study the Pakistani chocolate market, particularly the milk

chocolate market, and gauge any business problems and opportunities in it. It also uses

descriptive tools, to cross-validate the qualitative findings.

Sampling Techni que

The research used Cluster Sampling. For different tools, respondents were divided into

clusters according to SECs, age groups and store types. Simple random samples were then

drawn from each cluster.


8/66


Sample and Sample size:

Consumer surveys

Areas covered:Gulshan-e-Iqbal, North

Nazimabad, Defence, Malir.Age groups: 8-23

SEC A SEC B SEC C

30 30 30

Retail surveys


Nazimabad, Defence, Malir.

A type B type C type

2 4 4

Focus groups


Nazimabad, North Karachi, PECHS.

Age groups: 12-19

SEC A SEC B SEC C

2 2 2

Blind tests and conversations

Areas covered:Gulshan-e-Iqbal, North Nazimabad, North Karachi, Malir

Age group 8-11 12-15 16-18 19-21

6No. of respondents 7 7 5

Secondary Data Collection

For secondary data, internet databases such as WARC and JSTOR were used to conduct a

literature review on the global and regional chocolate market in general, and the milk

chocolate market in particular. The literature review focused on gauging consumer

preferences, and identifying top-selling chocolate brands and their marketing strategies.

Because literature on the Pakistani chocolate market is scarce, the literature review looked at

regional information, especially research on the Indian chocolate market.

Primary Data Coll ection

Primary data was collected through five means: surveys, focus groups, structured interviews,

blind tests and conversations. The section on tools employed provides a more detailed

breakdown of primary data collection.

Data Categori zation

Qualitative data was categorized, based on recurrent themes in the focus group and interview

transcripts. Quantitative data was categorized using Excel pivot tables, and IBM-SPSS

software. This hybrid approach allowed for the structuring, documentation and standardizing

of both qualitative and quantitative data, into an interactive whole.

Data Analysis


9/66


Qualitative data was analysed through a hermeneutics approach: recurrent themes were

identified from focus group and interview transcriptions, for both consumers and retailers.

These were used to draw inferences, and offer recommendations.

Quantitative data was analysed in two ways: through advanced Excel, and IBM-SPSS. Theanalysis was used to gauge relationships amongst variables, based on pivot tables and

statistical tests.

Research Methods and Tools

The research methodology employed the following five research tools:

1) Surveys

2) Focus Group Interviews

3) Structured Interviews4) Blind Tests

5) Conversations

1)SurveysTo target consumers in all socio-economic classes, a consumer survey was conducted

in two ways: mall interceptand electronic.The objective was to get a general feel of

the chocolate market and consumer preferences therein, based on which a targeted

focus group outline could be developed. The mall intercept surveys catered to

consumers from SECs B and C, while the electronic surveys targeted consumers from

SECs A and B.

2) Focus Group InterviewsFocus groups were conducted in six schools, two each from SECs A, B and C. For

these, people aged 12-19 were targeted. The qualitative data gained through these

discussions, reflected more elaborate perspectives and insights than the quantitative

data gained through the initial survey.

3) I n-depth Structured I nterviewsThe target of employing this tool was to get a better insight of chocolate consumption

and preference from the retailers viewpoint. In this phase, over ten in-depth,structured interviews were conducted, in A, B and C type stores, across Karachi. The

results also threw light on the supply chain activities and trade offers given to retailers

and shopkeepers, by chocolate manufacturers.

4) Bl ind Tests

Blind testing was used as the final tool in the research, to cross-validate the consumer

preference information gained through the surveys, focus groups and interviews, and

filter out any intentional or unconscious biases in the responses. Blind tests were

conducted on 25 individuals, from all age groups. Based on insight gleaned through

the previous tools, three chocolates in the optimal price range - a pure milk chocolate,


10/66


Dairy Milk; a caramel chocolate, Now; and a wafer chocolate, Cloud 9 - were used

for these tests.

5) Conversations

To gain insight into the results of the blind tests, the blind tests were accompanied by

semi-structured conversations, which discussed the reasons a consumer liked or

disliked a particular chocolate.

D a t a G a t h e r e d

For an overview of the data gathered, please see Appendix C. For an in-depth look at the

data, including complete responses to the survey and interview questionnaires, focus group

transcripts, and blind test results, please see Appendix D.

A n a l y s i s o f D a t a

This section discusses the tests run on gathered data, and gives the statistical inferences. To

see what these inferences mean in layman or business terms, please proceed to the

section on Inferences & Findings.

C h i S q u a r e T e s t i n g

Type of Chocolate and Fil li ng

Type of Chocolate Total

Caramel Dark Milk I don't prefer

any of these

Filling

Be pure chocolate 2 8 26 0 36

Have nuts, raisins or fruits 8 6 19 0 33

Have wafer 7 2 6 2 17

I don't prefer any of these 0 1 2 1 4Total 17 17 53 3 90

Chi-Square Tests

Value df Asymp. Sig. (2-

sided)

Pearson Chi-Square 24.188a 8 .004

Likelihood Ratio 22.849 8 .007

N of Valid Cases 90


11/66


58% of the respondents prefer milk chocolate,while 18% each prefer caramel and dark.

Of those that prefer milk chocolate, 49% prefer their milk chocolates to be pure, while 35%

prefer that their chocolate have nuts, raisins or fruits.

Of respondents that prefer caramel chocolates, 11% want their chocolates to be pure, while

83% prefer their caramel chocolates to have some kind of embellishment.

Because the Pearson Chi-Square value is less than 0.05, it can be concluded there is no

association between the type of chocolate and the kind of filling. However, because the

likelihood ratio is greater than 0.05, it can be inferred that the dependent outcomes are likelier

under this current model, than without it.

Age and Type of Chocolate

Type of Chocolate TotalCaramel Dark I don't prefer

any of these

Milk

Age

Below 12

12 - 15

0

5

0

5

0

0

3

14

3

24

16 - 18 5 6 0 16 27

19 - 23 7 6 3 19 35

Above 23 0 0 0 1 1

Total 17 17 3 53 90

Chi-Square Tests


sided)



N of Valid Cases 90

a. 13 cells (65.0%) have expected count less than 5. The minimum

expected count is .03.

Milk chocolate is the most popular, in all age groups. The Pearson Chi-Square and

Likelihood Ratio significance values are both much greater than 0.05, which shows that the

chocolate preferences shown here are highly dependent on age groups.

Price Range and Type


Caramel Dark I don't prefer

any of these

Milk

Price range More than Rs. 25 1 6 0 9 16


12/66


Rs. 10 - 15 4 5 2 20 31

Rs. 16 - 20 6 4 1 10 21

Rs. 21 - 25 5 1 0 10 16

Rs. 5 - 9 1 1 0 4 6

Total 17 17 3 53 90

Chi-Square Tests


sided)



N of Valid Cases 90

a. 14 cells (70.0%) have expected count less than 5. The minimumexpected count is .20.

Frequency of Purchases


Caramel Dark I don't prefer

any of these

Milk

Frequency

1-2 times per week 6 6 1 25 38



Less than once a week 7 7 2 11 27

More than six times a week 0 0 0 2 2

Total 17 17 3 53 90

Chi-Square Tests


sided)



N of Valid Cases 90



Milk chocolates are the most frequently purchased, with 47% of respondents buying

them at least once a week, and 19% of respondents buying them at least thrice a week.

Caramel chocolates are the second most purchased, with 11% of respondents purchasingthem at least once a week.


13/66


The Pearson Chi-Square and Likelihood Ratio significance values are both greater than 0.05,

which shows that the type of chocolate and frequency of purchases are associated.

Tendency to Tr y Out New Chocolates(Af ter they are Made Avail able in the Market)

Do you try out new chocolates? Total

Never Often Rarely Sometimes

Type of Chocolate

Caramel 1

0

1

3

5

3 4 9 17

Dark 3 7 7 17

I dont prefer any of these 1 1 0 3

Milk 14 12 24 53

Total 21 24 40 90

Chi-Square Tests


sided)



N of Valid Cases 90



74% of the respondents who prefer milk chocolates, are inclined towards trying out new

chocolates, sometimes or often; while 71% of respondents who prefer caramel chocolates,

and 58% of respondents who prefer dark chocolate, exhibit the same behaviour.

The Pearson Chi-Square and Likelihood Ratio significance values are both greater than 0.05,

which shows an association between the type of chocolate, and the willingness to try out new

chocolates.

Consumer Behaviour Total

Change brands

frequently

I don't consume

chocolates

Stick to

same one

Type of Chocolate

Caramel 9

8

0

25

42

1 7 17

Dark 0 9 17

I don't prefer any of these 2 1 3

Milk 0 28 53

Total 3 45 90


14/66


53% of caramel chocolate consumers change brands frequently, while 47% of milk darn dark

chocolate consumers exhibit the same behaviour.

Factors Considered When Purchasing Chocolates

Age

Taste Total

1 2 3 4 5

Age

12 - 15 1 1 0 1 21 24

16 - 18 2 1 0 4 20 27

19 - 23 3 0 1 4 27 35

Above 23 0 0 0 0 1 1

Below 12 0 0 0 0 3 3

Total 6 2 1 9 72 90

Chi-Square Tests


sided)



N of Valid Cases 90

a. 22 cells (88.0%) have expected count less than 5. The minimum expected

count is .01.

Price

Price Total

1 2 3 4 5

Age

12 - 15 6 1 7 4 6 24

16 - 18 5 4 5 6 7 27

19 - 23 2 4 9 13 7 35

Above 23 0 0 0 0 1 1

Below 12 1 0 1 1 0 3

Total 14 9 22 24 21 90

Chi-Square Tests


sided)




15/66


N of Valid Cases 90


count is .10.

ConvenienceConvenience Total

1 2 3 4 5

Age

12 - 15 1 0 10 10 3 24

16 - 18 2 3 12 7 3 27

19 - 23 0 2 15 13 5 35

Above 23 0 0 1 0 0 1

Below 12 0 0 1 2 0 3

Total 3 5 39 32 11 90

Chi-Square Tests


sided)



N of Valid Cases 90


count is .03.

Condition

Condition Total

1 2 3 4 5

Age

12 - 15 1 2 2 9 10 24

16 - 18 3 2 3 4 15 27

19 - 23 2 1 6 9 17 35

Above 23 0 1 0 0 0 1Below 11 0 1 1 0 1 3

Total 6 7 12 22 43 90

Chi-Square Tests


sided)



N of Valid Cases 90


16/66



count is .07.

Packaging

Packaging Total

1 2 3 4 5

Age

12 - 15 2 1 0 6 15 24

16 - 18 1 7 7 5 7 27

19 - 23 4 9 5 6 11 35

Above 23 0 1 0 0 0 1

Below 11 2 0 1 0 0 3

Total 9 18 13 17 33 90

Chi-Square Tests


sided)



N of Valid Cases 90

The Pearson Chi-Square and Likelihood Ratio significance values for the last test are both

less than 0.05, which shows a lack of association between packaging and purchases. Breakingdown the results, packaging is the most important to children aged 12-15, 88% of whom

consider it when making a purchase.

Binomial Testing

Category N Observed Prop. Test Prop. Exact Sig. (2-

tailed)

Taste

Group 1 3 81 .90

Total 90 1.00

Price

Group 1 3 45 .50

Total 90 1.00

Convenience

Group 1 3 43 .48

Total 90 1.00

Condition

Group 1 3 65 .72

Total 90 1.00


17/66


Packaging

Group 1 3 50 .56

Total 90 1.00

B l i n d T e s t s

Category N Observed Prop. Test Prop. Exact Sig. (2-

tailed)

Now

Group 1 3 3 .12

Total 25 1.00

Dairy Milk

Group 1 3 23 .92

Total 25 1.00

Cloud 9

Group 1 3 18 .72

Total 25 1.00

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Now 25 1 4 2.44 .961

Dairy Milk 25 3 5 4.48 .653

Cloud 9 25 2 5 4.00 .957

Valid N (listwise) 25

G r a p h s

When do you or your fami ly buy chocolates?


18/66


Who or what general ly inf luences your decision to buy chocolates?

I n f e r e n c e s & F i n d i n g s

(I n Layman Terms)

F r o m S u r v e y s

1. Chocolates are high on the list of junk food items purchased, with 55% ofrespondents listing them as the convenience food they purchase most often.

0 10 20 30 40 50 60 70 80

Routine - whenever I feel like it

When younger siblings ask or insist

Festivals such as Eid

As gifts for friends on birthdays,

graduations etc.

On occasions (when guests are coming

over, when you have to treat your

friends)

0 10 20 30 40 50 60 70

Mother

Father

Friends

Older siblings

Younger siblings

TV or print ads

Word-of-mouth advertisement or hype

My own personal choice

I don't consume chocolates


19/66


2. Chocolate purchases are generally impulsive. However, planned purchases are made

as birthday gifts.

3. Milk chocolates are the most preferred type of chocolate. When fillings are

weighed into the decision process, pure milk chocolate without any

embellishments is the most preferred.

4. The preference for a type of chocolate (milk, dark or caramel) is superior to the

preference for filling. Someone who prefers wafer-based milk chocolate, may be

willing to purchase pure milk chocolate. However, just because this respondent

prefers wafer-based milk chocolate, does not mean she or he will be willing to

purchase wafer-based caramel chocolate.

5. Taste preferences are the most important factor in a consumers decision to

purchase a chocolate. 90% of consumers rate it 4 or above, on a rating scale.2

6. The condition of a chocolate is the second most important factor in a consumers

decision to purchase chocolate. 72% of consumers rate it 4 or above, on a rating scale.

This means a chocolate that is melted or deshaped at the point of purchase, will

hardly ever be purchased.

7. Packaging does not influence purchases, except in the case of children aged 12-15,

88% of whom consider it highly important when buying a chocolate.

8. Convenience is an important factor, across all age groups. The importance of how

easily a chocolate is available, does not change with age. In general:

o Even if consumers like the taste of a chocolate, it will not sell much if is

not conveniently available.

o If consumers do not like the taste, the chocolate will not sell, even if it is

conveniently available.

9. Consumers who purchase milk chocolates, purchase chocolates most frequently.

Caramel chocolate consumers purchase caramel chocolates less frequently, while dark

chocolate consumers purchase dark chocolate very rarely.

10.It is easiest to convince milk chocolate consumers to try out a new milk

chocolate, and caramel chocolate consumers to try out a new caramel chocolate.

It is much harder to convince a milk chocolate consumer to try out a caramel or dark

chocolate; a caramel chocolate consumer to try out a milk or dark chocolate; or a dark

chocolate consumer to try out any type of chocolate at all. This means that a

company introducing a new milk chocolate, must target existing milk chocolate

consumers.

Fr o m F o c u s G r o u p s

1. Dairy Milk is the most preferred chocolate brand in the Rs. 5-9 and Rs. 10-15

categories, because it offers the highest quality in the category.

2. Almost all consumers dislike the thinness of the Rs. 10 Dairy Milk.However, they

continue to purchase it because it offers the best value for money, in the category.

3. The optimal price range for SECs B and C is Rs. 10 - 15.

2With 1 representing least important; and 5, most important.


20/66


4. Even though milk chocolate is the most purchased, consumers in SECs B and C

would prefer caramel chocolate to milk chocolate, if they could find an easily

available Rs. 5 - 15 chocolate that is high on caramel content.

5. The availability of a chocolate has a strong impact on sales.

6. The variety of chocolates that is available in school canteens, strongly influencesthe purchase decisions of 12-15 year olds.

7. Candyland is considered a brand whose chocolates are low-priced and targeted

at children.

8. Now has 100% brand awareness in all three SECs. However, it is considered low on

caramel content, and hard to chew.

9. Consumers from all three SECs who have tasted Cloud 9, like its taste. However,

Cloud 9 is not availablein most shops and stores.

10.Chocolate purchases in the Rs. 5-20 category are generally impulsive.

11.Chocolate purchases are planned on occasions such as birthdays. Buying gift packs

or cartons, ranging from Rs. 50 - Rs. 200, on these occasions, is popular in all three

SECs.

12.Word-of-mouth advertising plays a huge role in attracting customers. Almost all

consumers in the 8-19 years old target segment will try out a chocolate, if a friend or

someone they know well recommends it.

F r o m R e t a i l e r I n t e r v i e w s

1. Chocolates are generally purchased from Type A, B and C stores by children aged 8

- 15.

2. The price range at which chocolates in all three types of stores sell the most, is Rs.

10-15.

3. Young adults, aged 16-19 tend to purchase chocolates in the Rs. 21-25 range.

4. Pure milk chocolate sells the mostin all three types of stores.

5. Dairy Milk is the most selling brand of chocolate in all three types of stores.

6. The sale of chocolates decreases in summers, due to melting.

7. Consumers buy gift packs and cartons of chocolates on occasions, such as

festivals and approaching birthdays.

8. For a fast-moving consumer good like chocolate, public demand is the most

important factor for retailers, when deciding share of shelf.

9. Profit margins are important for retailers, in general. However, they are less important

when it comes to low-priced chocolates, because most chocolates offer similar profit

margins.

10.In comparison to public demand and profit margins, the advertising campaign and

quality of a chocolate do not matter at all to retailers.

11.However, retailers believe that advertising campaigns play a role in creating public

demand.

12.Retailers are happy with Candylands supply chain, and have no complaints.

13.Retailers stock Candylands jellies and toffees heavily, but the same retailers do

not stock Candyland chocolates extensively or at all, due to a lack of public demand.


21/66


14.Some retailers do not stock Candyland chocolates, because Cadbury offers

excellent trade offers,in return for stocking only Cadbury chocolates.

15.Now is available at Type C stores, but is hard to find in Type B and A stores.

16.Cloud 9 is not available at most stores, irrespective of their type.

F r o m B l i n d T e s t s

Quanti tative fi ndings

1. Pure milk chocolate and Dairy Milk are the most preferred type and brand of

chocolate respectively, in the Rs. 10 - 15 category.

2. The average consumer finds Cloud 9 completely satisfying - the most frequent

taste rating Cloud 9 received on a rating scale was 5.

3. Now is received most favourably by children aged 8-15, the same age group that

showed a preference for caramel chocolates, in focus groups.

Qualitative findings

1. Dairy Milk is liked by consumers for its smooth texture, rich, milky taste, and

creaminess. This cross-validates the earlier quantitative and qualitative findings, that

the average Pakistani chocolate consumer has a well-developed preference for

pure milk chocolate.

2. Now is recognized as a low-quality caramel chocolate, because it is low on caramel

content. Most consumers also said that it was hard to bite. This shows three things:

that the Pakistani chocolate consumer is sufficiently used to caramel chocolate, for theinference that caramel chocolate is popular in Pakistan; that Now is disliked, because

its caramel content is not high; and that, comparing the comments received on Now

and Dairy Milk, the average Pakistani prefers to consume soft, rich chocolate.

3. Cloud 9 is very well-liked, for its thick layer of chocolate and wafer.Those who

disliked it pointed out its hardness, which they felt detracted from it.

R e c o m m e n d a t i o n s

Based on the findings and their analyses, the following recommendations are made toCandyland.

I.Not launching a premium mil k chocolate.Although the research makes it clear that milk

chocolate dominates the Pakistani chocolate market, it is advised that Candyland not launch a

premium milk chocolate. This is for two reasons:

Candyland is not considered a premium brand. The findings show that consumers do

not perceive Candyland products - even those that receive high taste ratings in blind

tests - as high-quality products, when they are placed on shelves. In general,

Candyland is considered a company whose confectionary products cater to children in


22/66


low-income groups. This makes it unfeasible for the company to launch a product that

caters to SEC A, unless the company repositions or modifies its brand image.

Consumer brand consciousness, the above-the-line marketing strategies employed by

international brands, and Cadbury Dairy Milks comprehensive market coverage

result in high barriers to entry in the milk chocolate market, which cannot be

overcome without extensive spending on both push and pull strategies. Considering

the resources Candyland can allot to a new product launch, it is not advised that the

company seek to compete in the premium milk chocolate market.

II. Targeting the milk chocolate market in SECs B and C. It is recommended that

Candyland launch a Rs. 10 milk chocolate positioned for these SECs because:

Routine milk chocolate consumers in these SECs are not brand-conscious. This means

Candyland can target them, without having to reposition its own image.

Because the average milk chocolate consumer is willing to try out and adopt a newmilk chocolate brand, the probability that Candyland can engage in below-the-line

marketing to capture market share in these socioeconomic classes is high.

Milk chocolate consumers in all three socioeconomic classes are highly dissatisfied

with the thinness of Rs. 10 Dairy Milk. If Candyland can offer a thicker, pure milk

chocolate for the same price, the research results show that milk chocolate consumers

would be willing to switch.

III.Consolidating its curr ent portfolio.The research findings show that, while consumers

are aware of the differences between the chocolates Candyland offers, this awareness has not

been sufficient to encourage them to consume these. In other words, Candyland chocolates

sell based on their price, rather than on their tastes or perception of quality. Since, price-wise,

all of Candylands chocolates cater to the same socioeconomic classes, this leaves little

differentiation between them. Based on these findings, this report recommends

Researching whether the companys chocolates may be cannibalizing each other,

because the people who consume them are consumers who are more concerned about

price than taste

Identifying which Candyland chocolates have the greatest and least market demand

and marketability

Consolidating the companys current chocolate portfolio into the two best-liked

brands, so that the company may pool its resources, to market a few winning brands.

Focusing on retaining chocolate brands that are priced between Rs. 10 - 15, which

findings show is the optimal price range for a chocolate in SECs B and C.

Establishing an optimal scale of production,by doing away with chocolates that are

shown to have little market demand, and hence cutting down on the costs of

production and packaging.

IV.Researchi ng Cloud 9. Blind tests show that Cloud 9, one of Candylands more recent

offerings, is a clear winner - people prefer its taste as much as that of the overall market


23/66


leader, Dairy Milk. Considering that Cloud 9 is also priced in the optimal price range, this

report recommends:

Researching the claim that Cloud 9 is not easily available, as easy availability is

shown to be an important factor in a customers decision to purchase a chocolate.

Utilizing the cost-savingsachieved through portfolio consolidation to advertise this

brand, since findings show advertising plays a very important role in attracting

customers

V.Revamping Now. Qualitative research shows that caramel chocolate has a massive

market in SECs B and C - in fact, actual demand for caramel chocolates in these

socioeconomic classes is greater than that for milk chocolate. However, people opt for

milk chocolate, because existing, low-priced milk chocolates offer better value for money,

than existing caramel chocolates. In addition to this, Now has 100% brand awareness in all

three SECs. Based on this, this report recommends:

Leveraging the demand for caramel chocolate, by pushing Now to consumers through

the trade promotionsand below-the-line marketing strategies discussed below.

Addressing the major issue with Now - its low caramel content - to convert users who

opt for Dairy Milk, because no low-priced caramel chocolate offers a good amount of

caramel content, into Now users.

V. Focusing on trade promotions.The research has shown that retailers tend to give Cadbury

Dairy Milk more shelf space than any other chocolate, in part due to the trade incentives

Cadbury provides them. Because Candylands marketing budget is restricted, and it cannot

compete with big name chocolate brands on the basis of above-the-line (ABL) advertising, itis recommended that the company utilize trade promotions to push its winning products to

consumers. For this, this report suggests

Incentivizing in-store displays. Because this researchs findings show that most

purchases of chocolates are impulse buying, which is encouraged if the product is

placed near cash registers or the front of stores, Candyland can encourage impulse

buying of its chocolates by offering retailers incentives to place Candyland chocolates

at Poin t of Sale displays.

Offering greater profit margins.While Candyland may not be able to offer retailersthe kind of incentives Cadbury does, Candyland can push its chocolates through

retailer, by offering them greater profit margins. Findings show that while profit

margins are less important to retailers than public demand, they are still important. If

Candyland can offer even twice the profit margin most other chocolates brands offer -

Rs. 2 instead of Rs. 1, on a Rs. 10 chocolate - it can catalyze on this finding, to

capture much greater shelf space.

Offering commissions. Candyland can also push its chocolates to consumers, by

setting commission-linked sales targets for retailers. This approach also allows the

company to recover the expenses it incurs in the form of commission payments,through an increase in sales volume.


24/66


VI. Engaging in below-the-line (BTL) marketing. It is clear that Candyland cannot spend

extensively on ATL marketing. Therefore, the report recommends following a four-step BTL

marketing approach, which includes:

Pushing its products through school canteens. The qualitative research shows that

the variety of chocolates available in school canteens, has a massive influence on the

purchase decisions of children in SECs B and C. Children aged 12-15 are more

likely to both try out and regularly purchase chocolates, that are available in

their school canteens.It is hence recommended that Candyland push its products to

consumers, by ensuring they are supplied in school canteens. It can combine this push

strategy with trade promotions, to ensure that school canteens predominantly or

exclusively supply Candyland chocolates.

Creating avenues for increased publicity and word-of-mouth-recommendations,

which are the single most important factor in a consumers decision to try out a new

chocolate, through:

a) Sampling. Research shows that, while there is a huge potential market for Cloud

9, not many chocolate consumers have tried it. To increase publicity for the brand,

it is recommended that Candyland set up stalls that allow free sampling. This

would also result in word-of-mouth recommendations, which are the single

most important factor in a consumers decision to try out a new chocolate.

b) Sweepstakes and contests. Sweepstakes and contests are popular in SECs B and

C, especially among children. Because a sweepstake or contest often does not

require more than one grand prize, or involves a large number of small prizes, it

makes for cost-effective marketing - especially in elementary schools, where such

activities are popular.

c) Event sponsorships. To engage older children and young adults, Candyland can

catalyze on the trend of sponsoring free product giveaways, at college and

university level events. This allows Candyland to set up stalls, where its

representatives can interact with students throughout the event. In most cases,

such sponsorships will also result in Candyland representatives being allowed to

speak at the events welcoming or closing ceremonies. This is a two-pronged

approach: it does not just increase awareness of the product in its target market,

but also allows consumers to taste the product, right there and then, an activity

they might not have engaged in on their own, later on.


25/66


APPENDIX A

Literature Review

Chocolate has been around for centuries, but it was not until the nineteenth century that now-famous brands such as Cadbury introduced it to the fast-moving consumer goods market

(Business 2000, 2012). Since then, the desire for chocolate products has risen around the

globe, with cocoa supplies falling short of demand in 2010, and 2013 (Josephs 2013). Given

the nature of this research, which focuses on clarifying the current situation in the Pakistani

chocolate market, and finding business opportunities therein, this literature review addresses

the following questions:

1) What is the market for chocolate, both globally and in the region?

2) What is the market for milk chocolate in the coming years, especially in South

Asia?

3) How have leading chocolate brands stayed competitive in the Asian chocolate

market?

There can be no doubt that there is a massive market for chocolate products, and it is growing

- according to a 2012 report published by the KPMG, chocolate may well be recession -

resistant, as consumers choose to spend on it, even as they cut down on luxury products (p. 2

of 12). North America and Western Europe account for 50% of global chocolate demand

right now, though research suggests both are reaching saturation. In the light of this, the

BRIC nations - who account for over half of the worlds confectionary demand in general -are expected to capture a larger and steadily increasing share of the chocolate market.

Demand in Asia, too, is expected to rise (pp. 3-5). While demand for chocolate in Pakistan

itself is still in the early stages of development, sales are increasing each year, and saw a 19%

rise in 2012 (Euromonitor International, 2013).

This does not, however, mean that chocolate manufacturers can sit back and take it easy:

European Head of Consumer Markets, John Morris, is quick to point out that this rise in

demand presents its own unique challenges, as consumers do not just want chocolate, but

indeed want a wide variety of chocolate products, that are available for the right price, at theright place and time (KPMG, 2012, p. 2 of 12) Globally, then, KPMG suggests three kinds of

buyers for chocolate - convenience buyers, who grab chocolate on impulse; value buyers,

who want good value for their money, and account for a large share of the market in

developing economies with ill-defined or large middle classes, like India and Pakistan; and

luxury buyers, who are often seasonal, and tend to go for dark chocolate products (p. 7 of 12).

While sweet chocolate or milk chocolate has been the traditional favourite, trends have begun

to change of late, as consumers in the West - especially the USA and Europe - begin to shift

towards darker varieties of chocolate. According toThe Wall Street Journal, dark chocolates

share in the chocolate market has risen to 20% in the US, a 2-percentage point increase infive years, while its share in Switzerland has seen a massive 8-percentage point jump, in the


26/66


same period of time (Josephs & Rai, 2013). This has been coupled with a decrease in the

market share of milk chocolate, which has been falling since 2008 (Josephs 2013). Chocolate

manufacturers in the West are therefore striving to develop and market new dark chocolate

products, not only because of the shift in tastes, but also because the premium pricing

attribute of dark chocolates results in higher profits for them.

There are a number of factors driving this change in demand of dark chocolates. According

to Thomas (2008), these include a trend towards health-conscious food choices, as the high

percentage of cocoa present in dark chocolates leads to heart health and protection of the

body; premium pricing, which makes it a favourite for sophisticated shoppers; ethical

consumerism, as dark chocolates are single-origin chocolates, and better address consumer

issues regarding free trade and organic production; and new product development, as dark

chocolate products are being effectively developed in terms of health, taste, positioning and

consideration of ethics in their packaging. As Thomas points out, these factors have also

resulted in significant brand extensions from milk chocolate brands, such as Cadbury, which

introduced the dark chocolate version of its Flake brand. Thomas hence argues that the

market for dark chocolates will continue to grow at a good pace providing opportunities to

the players in the market.

Even so, it is important to notice how the regional chocolate market differs from dominant

global demand. South Asians, in general, prefer sweeter chocolates. The result is that milk

chocolate brands are popular in economies like India and Pakistan. In fact, Pinnacle (2013)

argues that the largest market for chocolate products in South Asia is located in its most

sweet-loving areas, such as Bengal. The Euromonitor Internationals report on chocolate

sales in Pakistan (2013) gives the same results, showing that the Pakistani chocolate-

consumer prefers milk chocolate - in 2012, for example, Mars, Cadbury Pakistan and Nestle

Pakistan led the chocolate confectionary market with retail share values of 26.1%, 26% and

16.5% respectively, all with milk chocolate brands.

This leads us to our final question of how these brands have maintained a strong presence in

the regional and local chocolate markets. The BBC (2010) attributes the success of leading

global and local brands such as Nestle, Kraft Foods, Cadbury, Mars, Hershey and Ferrero, to

mergers and restructuring. In the case of Kraft and Cadbury, the two companies decided to

merge the firms in order to generate competition. The chief executive Kraft Foods, Irene

Rosenfeld, expected this combination to create a global powerhouse in snacks, confectionery

and quick meals. She also thought that this combination had a tremendous growth potential

(BBC News, 2010). This combination was taken as a major threat by Mars, which

restructured its own global chocolate operations in response, realigning them to make them

more focused on consumers and competition within each separate region. According to

Alison Clarke, corporate affairs director for Mars UK (as cited in Russell, 2010), the changes

were not just in the Europe and the UK, but also focused on the Asian market, which is

becoming increasingly significant in terms of chocolate consumption. Therefore, this

restructuring revived the previously existing competition between Kraft/Cadbury and Mars

not only in Asia, but across the globe (Russell, 2010).


27/66


On a smaller and more marketing-oriented scale, Pinnacle (2013) outlines the case of

Cadbury Dairy Milk in India, which identified consumer loyalty to the traditional

sweet/mishti of Bengal as an opportunity to increase its market share. To achieve its goal of

capturing a greater portion of the market, the company organized a Cadbury dairy milk

sweet/ mishti competition for traditional sweetshop chains in Bengal. The company gave the

competition a flavor of the general election, as Bengalis were identified as vote loving

people, asking them vote for their favorite dairy milk mishti through a voting machine. The

campaign was very successful, as it managed to integrate Cadbury dairy milk into the Bengal

culture, and created a space for chocolates in the traditional mishti loving people of Bengal.

According to Pinnacle, the consumer metric for Dairy milk as preferred sweet increased by

32% through this campaign.

In short, we can conclude that demand for chocolate products is growing globally, with

demand in South Asia - and therein, Pakistan - focused on milk chocolate brands and

products. This demand is affected by taste, pricing, and availability of chocolate, among other

factors, and the marketing, operations and supply chain functions all possess the potential to

play significant roles in increasing or inhibiting it.


28/66


REFERENCES

BBC News. (2010, February 2).Kraft Foods completes Cadbury takeover. Retrieved October

29, 2013 from http://news.bbc.co.uk/2/hi/8492572.stm

Business 2000. (2012) Cadbury - Brand development through packaging. Retrieved October

29, 2013 from http://www.business2000.ie/pdf/pdf_3/cadbury_3rd_ed.pdf

Euromonitor International. (2013, May). Chocolate confectionary in Pakistan.Retrieved

October 29, 2013 from http://www.euromonitor.com/chocolate-confectionery-in-

pakistan/report

Josephs, L. (2013, September 23). Brazil's chocolate demand heats up. The Wall Street

Journal.Retrieved October 29, 2013 from

http://blogs.wsj.com/moneybeat/2013/09/23/brazils-chocolate-demand-heats-up/

Josephs, L. & Rai, N. (2013, September 22). Chocolate prices soar in dark turn. The Wall

Street Journal.Retrieved October 30, 2013 from

online.wsj.com/news/articles/SB10001424052702303983904579091120112729130

KPMG. (2012, June). The chocolate of tomorrow: What today's market can tell us about the

future.KPMG LLP.Retrieved October 29, 2013 from

http://www.kpmg.com/UK/en/IssuesAndInsights/ArticlesPublications/Documents/PD

F/Market%20Sector/Retail_and_Consumer_Goods/chocolate-of-tomorrow.pdf

Pinnacle, T. (2013). Cadbury Dairy Milk: Happily married - chocolate and mishti. WARC.

Russell, M. (2010). In the spotlight - Mars' global restructuring.Just-Food.

Thomas, J. (2008). Competing for the dark chocolate market. WARC Exclusive.


29/66


APPENDIX B

Definitions

S o c i o e c o n o m i c C l a s s e s

34

Education of Chief Earner

Occupation

of Chief EarnerIlliterate

Less than

Primary

School 5-9

YearsMatric Intermediate Graduate Postgraduate

Unskilled worker E2 E2 E1 E1 D D C

Petty trader E2 E2 E1 E1 D C C

Skilled worker E2 E2 E1 D D C C

Nonexecutive staff E2 E2 D D D C C

Supervisory level D D C C B B B

Small shopkeeper/

businessmanD D C C B B A

Lower/middle:

Executive, officer D C C C B B A

Self-employed/

employed

professional

B B A A A A A

Medium

businessmanB A A A A A A

Senior executive/

officerB A A A A A A

Large businessman/

factory owner A A A A A A A

3

Adapted from Kotler, P. (2010).Principles of marketing: A South Asian perspective(13th

ed.).Delhi: PearsonIndia.4For focus groups, SECs were allotted based on the mean SEC of children in the focus group.


30/66


S t o r e s5

Type C: Neighbourhood stores, where all dealing is done over-the-counter. The customercannot enter the store to select an item; all items are accessed by the shopkeeper.

Type B:Neighbourhood stores, where most dealing is done over-the-counter. The customer

can enter the store and access a few items; however, most items are behind the counter, and

can only be accessed by the shopkeeper.

Type A:Stores which customers can enter and move around in. No items are accessed by the

shopkeeper - the customer selects all the items, and then takes them to the point of sale.

C h o c o l a t e s6

Milk: Solid chocolate, made with sugars and milk products, which contains

a) at least 10% by weight of chocolate liquor

b) at least 12% dry milk solids, obtained by partly or wholly dehydrating whole milk,

semi- or full-skimmed milk, cream, or from partly or wholly dehydrated cream, butter

or milk fat

c) not less than 3.5 % by weight of milk fat

Dark:Solid chocolate, made with sugars and milk products, which contains

a) at least 15% by weight of chocolate liquor

b) less than 12% dry milk solids, obtained from evaporated, sweetened condensed, or

dried milk; concentrated, evaporated, or sweetened condensed skim milk; non-fat dry

milk; concentrated or dried buttermilk, malted milk; or emulsifying agents, the total

amount of which does not exceed 1.0% by weight;

Caramel:Solid chocolate, made with sugars and milk products, which

a) intimately mixes or grinds chocolate liquor with natural caramel, or artificial caramel

flavouring

b) contains at least 10% by weight of chocolate liquor

c) contains less than 12% dry milk solids, obtained from evaporated, sweetened

condensed, or dried milk; concentrated, evaporated, or sweetened condensed skim

milk; non-fat dry milk; concentrated or dried buttermilk, malted milk; or emulsifying

agents, the total amount of which does not exceed 1.0% by weight.

5

Adapted from work by Phillip Kotler. It is important to note that this does not apply to IMTs. 6US Food and Drug Administration (2013, June 1). CFR - Code of Federal Regulations Title 21. Retrieved

from http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/CFRSearch.cfm?CFRPart=163


31/66


APPENDIX C

Questionnaires

M a r k e t S u r v e y

* Required

You are: *

Male

Female

Your age is *

Below 12

12 - 15

16 - 18

19 - 23

Above 23

The convenience foods you consume the most are*

Check the top three. For 'other,' please specify.

ToffeesChocolates

Biscuits

Chips

Other:

When buying chocolates, do you l ike them to be*

Milky

CaramelDark

None of the above

Do you prefer your chocolates to*

Be pure chocolate

Have wafer

Have nuts, raisins or fruits

I don't prefer any of these


32/66


What is the price range of the chocolates you general ly buy?*

Rs. 5 - 9

Rs. 10 - 15

Rs. 16 - 20

Rs. 21 - 25

More than Rs. 25

How often do you consume an average chocolate pack, per week?*

Average chocolate pack: 25 grams (Rs. 10-15)

Less than once a week

1-2 times per week

3-4 times per week

5-6 times per week

More than six times a week

When do you or your fami ly buy chocolates?*

Please check all that apply.

Routine - whenever I feel like it

When younger siblings ask or insist

Festivals such as Eid

As gifts for friends on birthdays, graduations etc.

On occasions (when guests are coming over, when you have to treat your

friends)

What factor s do you consider the most when buying chocolates? Rate on a scale of

1-5, with 1 being least important and 5 being most important.*

1 2 3 4 5

Taste

Price

Convenience

Condition

(such as if

it's melted or

frozen)

Packaging


33/66


Do you f requentl y change brands of chocolate, or stick to the same ones?

Change brands frequently

Stick to same one

I don't consume chocolates

Do you try out a new chocolate after seeing i ts advertisement?

Often

Sometimes

Rarely

Never


34/66


R e t a i l e r I n t e r v i e w Q u e s t i o n n a i r e

1. Which convenience foods are most demanded at your store?

2. Which age group is the major customer of chocolates in your store? 8-12, 12-15, 16-

19, 20-23, above that?

3. Do children come with their parents, or on their own? Generally, who makes the

buying decision?

4. When it comes to chocolate, on what basis do you prioritize product placement and

share of shelf?

Probe for: profit margin, public demand, perception of quality, attractiveness of

advertisements, and offers from companies.

5. Why do you stock (whatever chocolates they stock the most)?

Probe for:

Any reasons other than public demand.

What kind of profit margins they receive.

What kind of offers companies make to them, the incentives theyre given by different

companies.

6. What kind of chocolate is the most demanded at your shop?

Probe for:Brand names, type (milk, caramel, dark), fillings (pure, wafer, nuts andraisins, fruits).

7. Which SKUs are the most demanded at your store?

Rank for: Rs. 5-9, Rs. 10-15, Rs. 16-20, Rs. 21-25, above Rs. 25

8. Is the sale of chocolate sensitive to the change in season?

If yes, probe for:What seasons and how.

9. Is the sale of chocolate related to occasions?

If yes, probe for:What occasions - festivals such as Eid? Birthdays?

If theres a different in the kind of chocolates demanded at these occasions, and the

chocolates people normally purchase. Does the brand or type of chocolate change?

What kind of SKUs do people go for? Is there a change in packaging preferences?

10.In your opinion, what has the strongest negative impact on customer buying decision,

when it comes to purchasing chocolates?

11.Is it easy for you to obtain Candyland products?

Probe for:Company offers and relationship with the company.


35/66


Any supply chain issues.

12.What kind of Candyland products do you stock? Why these?

Probe for:Why or why not they stock certain Candyland chocolates.

13.In general, which is the most selling brand of chocolate?

For a chocolate that has several SKUs, ask for the SKU and price range that matters

most.


36/66


F o c u s G r o u p G u i d e

1 - 10 minutes:

Set up and introduction

For the introduction, give:

Your name, your degree, how you connect to these students, how you were a student like

them. Be nice. Tell them that youre here to research consumption patterns in junk food (or,

in easier words, what kind of junk food people eat). Do NOT mention chocolates. Thats

called a leading question - a question which tells the interviewer what you want to hear, and

what to think about - and you absolutely dont want to do that, at most points in the focus

group. Tell them how much of their time youll take (people like to know that) and STICK to

it. Ask them if they have any questions before you begin.

You should be taking ninety minutes, maximum. Forty-five minutes, minimum.

You dont have to ask only whats on the list. Rule of thumb, with focus groups: Based on

how people respond, you should typically be asking more/ different questions than

whats on the focus group questionnaire.

With each question, explain it. We know a lot of jargon (impulse buying vs. pre-planned, say)

which they might not. These questions are not supposed to be asked as is. Theyre just things

your focus group should provide answers to, or cover. Break them down and ask them in

parts, if you want.

Before you start asking questions, and after the introductions, tell them youre going to voice-

record the whole thing. Id suggest not videotaping, because Im not sure how many people

would be comfortable saying no to a videotape, in a peer pressurewalisetting, but you can do

that too, if you want. Whatever you choose, make sure to get their consent. Pass a consent

sheet around, and get all their names and signatures on it.

10-20:

1) What kind of junk food do you consume? What kind of titbits do you buy, when in ashop or a store?

(Ideally, someone will mention chocolates. If no one does, feel free to bring them to

sweets. If no one mentions it still, then bring chocolates in yourself. This helps us

know how high chocolates are on their list of junk food items.)

2) On what occasions do you eat chocolate? How often?

3) Is purchasing chocolates mostly impulsive, or mostly pre-planned?

20-30:4) What brands of chocolate have you tasted?


37/66


i) Which ones did you like the most? Why?

ii) Have you tried out a chocolate, and decided you didnt like it? Why didnt you

like it? (Ask for specific names and examples. Explore for taste, packaging,

ingredients, everything under the sun.)

30-35:

5) Do you try out new brands of chocolate? Or do you tend to stick to the same brand

that you prefer?

i) What was the last time you tried out a new brand of chocolate?

6) How soon do you try out a chocolate, after it comes into the market? Is that a

conscious decision or an impulsive one?

35-40:

7) What are the price ranges for the chocolates you buy most often? (For example, on

special occasions, people might buy Rs. 200 chocolate packs but, generally, they

might buy Rs. 10 Dairy Milk.)

40-45:

8) Have you ever tried a chocolate because of its name or packaging?

i) If yes, which one? What was it about it that attracted you? What did it remind

you of? What were your expectations, after looking at the name and

packaging?

ii) Have you ever left a chocolate because of its name or packaging? Why?

9) If you could find lower-priced milk chocolates, would you go for them instead of your

favourite brand? (Rs. 5 milk chocolate, compared to Rs. 10 Dairy Milk bar)

10)What do you think current chocolates lack? What would you change in them?

11)How do you define your ideal low-priced chocolate? Is there a brand right now that

you find perfect? Which one?

75 - 85 (including closing)

12)Is there anything youd like to add? Any feedback or suggestions, or anything you

feel we might have missed?

13)

Close politely. Thank them for their time. Give them an email address and/ or contact

number, and tell them to get in touch with you, if they come up with any new ideas.

Have fun! ^___^


38/66


APPENDIX D

Snapshots of Data Gathered

C o n s u m e r S u r v e y

You are

Your age is

When buying chocolates, you like them to be

56%

44% Male

Female

3%

27%

27%

42%

1%

Below 12

Dec-15

16 - 18

19 - 23

Above 23

59%19%

19%

3%

Milky

Caramel

Dark

I don't prefer any of

these


39/66


Your prefer your chocolates to

What is the price range of the chocolates you generally buy?

Which factors do you consider most when buying chocolates? Rate on a scale of 1-5, with 1

being least important and 5 being most important.

40%

19%

37%

4%

Be pure chocolate

Have wafer

Have nuts, raisins

or fruits

I don't prefer any

of these


40/66



41/66


42/66


Do you try out a new chocolate after seeing its advertisement?

23%

45%

26%

6%

Often

Sometimes

Rarely

Never


43/66


D a t a F r o m F o c u s G r o u p s

Findings from SEC A

Consumer preferences.The majority of the people in the two focus groups preferred Dairy

Milk chocolates, over any other brand produced locally. The findings also show that SECA

consumes prefer international brands like Snickers, Twix, Bounty, Butlers Chocolate, and

Toblerone.

In the low price category of chocolates, the participants preferred Dairy Milk over any other

chocolate, because they felt it was the only low-priced chocolate which offered good quality.

However, these participants were not happy about the quantity Dairy Milk gives.

Buying behaviour. The buying behaviour of this SEC is generally impulsive, where

chocolates in the Rs 11 - 20 price range are concerned. For international brands, however, the

purchase decisions are planned. Planned purchases are also made on special occasions such

as birthdays; these are brand conscious purchases.

Pricing. Participants were price conscious, but not to the extent of compromising on taste -

consumers from SEC A will not spend money on lower quality chocolates, just because these

chocolates are cheap. In general, they purchase chocolates in the Rs. 11 - 20 price range. For

special occasions, they buy larger SKUs, or chocolate boxes or gift packs.

Advertising. Consumers in SEC A respond to advertisements; a good ad will pull them

towards a chocolate, and the brand power of company launching a new chocolate plays a

strong role in their decision to try out a new chocolate. The general perception amongst these

consumers was that advertisement campaigns of local companies are not very effective,

because they do not leave a very strong image of the brand on their minds.

Packaging. One of the groups showed an inclination towards the packaging of the

chocolates, and discussed that international chocolate brands are very well-packed. It was

seen that the quality of the packaging, reflected the quality of the product inside their minds.

Findings from SEC B

Consumer preferences. Though chocolates do not top the junk food priority list of SEC B

consumers - chips and biscuits do - this class still goes for chocolates once or twice a week.

The findings show that SEC B consumers most purchase local chocolate brands, such as

Dairy Milk, Sonnet, Jubilee, Choc Day, Now and Cloud 9.

These participants seemed to like caramel chocolates very much, but still preferred Dairy

Milk in the low-priced category, because Dairy Milks high quality provided better value for

money, than the low-quality caramel chocolates available for the same price. They mentioned

that the taste of low-priced coconut-filled chocolates was not good, because the filling tasted

oily, which they consider a sign of low quality. Where tastes are concerned, the participants


44/66


45/66


APPENDIX E

Tr anscribed and Complete Responses

F o c u s G r o u p T r a n s c r i p t s

Institute of Business Administration, Karachi

Location: Gulshan-e-Iqbal

SEC A

Age group of participants: 17 - 19 years

Number of participants: 4

Breakdown: 2 males, 2 females

What kind of junk food do you consume? What kind of titbits do you buy, when in a

shop or a store?

R1: Chocolates

R2: Chips, chocolates

R3: Chips, chocolates

R4: Chocolates

How often do you have chocolates?

R1: Twice in a week

R2: Once or twice a week

R3: Once in two weeks

R4: Twice a week

Is purchasing chocolates mostly impulsive, or mostly pre-planned?

R1: I have chocolates whenever I feel like it.

R2: Its mostly pre-planned. Especially for occasions, I decide what kind of chocolate I want

to buy, based on the price and brand, and the kind of chocolate the guests or the person Im

giving it to would like.

R3: Itsgenerally pre-planned.

R4: If I feel like having a chocolate, Ill have it. Or if Im picking up groceries or food, and Isee chocolates, Ill pick a few up if I feel like having them.

What brands of chocolate do you like the most?

R1: KitKat, Dairy Milk

R2: Dairy Milk, Galaxy, Twix

R3: Dairy Milk, Butlers Chocolate

R4: KitKat, Dairy Milk, Galaxy

What about local brands?

R1: Dairy Milk is great. Perk is good, too.R2: Ive tried out Paradise.


46/66


47/66


R2: When the packaging is very unique, you want to try it out. I dont contin ue if the taste

isnt good, though.

R3: The packaging is important, especially if Im buying it for an occasion, like giving

someone a gift. For occasions, I only buy chocolates that have very nice packaging.

R4: The brand name is important. Especially if its an international chocolate, the name will

make me try it out. And if its local, you dont want to give it to your friends or on an

occasion. The same goes for the packaging. In routine life, though, the taste is more

important than the name or the packaging. So if I like a chocolate, even if its local or the

packaging isnt that great, Ill continue to purchase it.

R1 and R3 agreed.

If you could find lower-priced milk chocolates, would you go for them instead of your

favourite brand?

R1: No, I wont.

R2: No, its very doubtful that something worth Rs. 5 could offer good quality.

R1: I would try it out, but I wouldnt stick to unless the quality is much better, or at least the

same.

R3 and R4 agreed.

What do you think current chocolates lack? What would you change in them?

R1: The quality of local brands, most of all. Even for Rs. 15 or so, most local chocolates

wont offer a good taste or experience.

R2: Quality, taste. You dont have a lot of choice, if you want good chocolates. Not in local

shops, anyway. Dairy Milk is good, but the Rs. 10 Dairy Milk is pretty thin. Not much in

terms of filling. The advertising for most local brands - other than Dairy Milk, of course - ispretty ineffective too.

R3: Local brands like Now and Jubilee are hard to chew. With Dairy Milk, one major issue is

that it melts really quickly, especially the Rs. 10 one. In a place like Karachi, thats not very

good.

R4: Quality, taste. Im willing to pay Rs. 20 instead of Rs. 10, but the quality should be good.

In Pakistan, if you want quality, you mostly cant go for local chocolates.

Is there anything else youd like to add?Any questions or suggestions?

Everyone: Nope.


48/66


Beaconhouse School System

Location: PECHS

SEC A

Age group of participants: 14 - 15 years

Number of participants: 6

Breakdown: 4 females, 2 males

What kind of junk food do you consume? What kind of titbits do you buy, when in a

shop or a store?

R1: Fries, burgers

R2: Fries

R3: Chocolates, fries, burgers

R4: Chocolates

R5: Cold drinks, fries, chocolatesR6: Chips, chocolates

On what occasions do you eat chocolate?

R1: Not really planned, at random or while watching movies.

R2 and R3 agreed.

R4: When I see them in a shop and feel like having them. While watching movies, like she

said.

R5: Whenever I feel like having them. Special occasions would be maybe birthdays or

parties. Chocolates are more of a routine thing, though. Like chips or drinks. You get them

whenever you feel like them.

R6 agreed.

How often do you have chocolates?

R1: On a daily basis!

R2: Twice a day.

R3: Twice or thrice a week.

R4: Quite a lot. Almost every day.

R5: A couple of times a week, really. Maybe thrice a week.

R6: Once or twice a week.

Is purchasing chocolates mostly impulsive, or mostly pre-planned?

Everyone: Impulsive, who would plan on buying a chocolate?

What about on occasions? When youre buying chocolates for, say, someone else?

R1: That has to be the only time. When Im buying chocolates for someone else, Im

conscious about what brand, what price range of chocolate, I buy. I plan the decision, then.

R2: When my brother is coming from abroad, hell call and ask what kind of chocolates we

want. If that counts for pre-planned.

R3: When Im giving them to someone else, like as a gift, or when theyre going to be servedto guests or their children, something like that, then theyre planned. But not in routine life.


49/66


R4, R5 and R6 agreed.

What chocolates have you tried?

R1: KitKat, Dairy Milk, Snickers

R2: Twix, Dairy Milk, KitKatR3: Dairy Milk, Butlers Chocolate, Toblerone,

R4: Dairy Milk, KitKat, Toblerone, Snickers

R5: Dairy Milk, Sonnet, Twix

R6: What everyone else said, pretty much.

What about local chocolates? Have you guys tried out those?

R1: Yes. Off the top of my head, I can think of Paradise.

R2: Now, Jubilee.

R3: Dairy Milk is a local brand. Now is pretty popular too

R4: Paradise, Now

R5: Cloud 9, Now, Paradise

You mentioned Cloud 9. What does everyone think of it?

Nobody except R5 had tried it. R1, R2 and R3 said it wasnt available in the shops or stores

near their houses.

Have you tried out a chocolate, and decided you didnt like it? Why didnt you like it?

R1: Ive never totally disregarded a chocolate, after trying it just once. Sometimes, its an

acquired taste and you just have to get used to it.R2 agreed.

R3: The purchasing decision depends a lot on the availability and price. Sometimes, the taste

is fine, but its not worth the price. Other times, it tastes bad because its cheap. I think

chocolates like Now, Ive left them because they werent good, but if they were a bit higher-

priced, theyd have a better taste, so they could work very well in the local market.

R4: Id agree about that part, that pricematters a lot. KitKat and Dairy Milk are available at a

lot of prices. I didnt like the Rs. 5 Dairy Milk, but I understand that is because its so low-

priced, you cant really expect a lot of filling or something grand.

R5: Most local brands. They compromise on quality, just to keep the price low.

R6: Yes, Now because it was kind of hard to chew. The Rs. 10 Dairy Milk, because it isntvery fulfilling, and it melts very quickly, too.

Do you try out new brands of chocolate? Or do you tend to stick to the same brand that

you prefer?

R1: I try out new brands frequently, but I also have certain favourites that Ive always stuck

to.

R2, R3 and R4 and R5 agreed.

R6: I try out new brands when I get tired of the old ones, tasting the same thing over and over

again can get boring. Id say I switch every one or two months. But there are definitely some

brands that are just too good to give up on.


50/66


Youre all talking about some brands that you wouldnt give up on. Which are these?

Everyone, more or less: Nestle, Cadbury, Mars.

What was the last time you tried out a new chocolate?Most of them could not recall.

R1: I tried out Cadbury Bournville recently.

R2: I tried KitKat Dark.

How soon do you try out a chocolate, after it comes into the market? Is that a conscious

decision or an impulsive one?

R1: It depends on the brand name. If the brand has a great name, or if its internationally

accepted, then I try it out as soon as possible.

R2 and R3 agreed.

R4: The advertisement campaign has a lot to do with it. If the campaigns very classy or fun,if its something that makes me curious about the chocolate, then Ill definitely try the

chocolate as soon as it hits shelves.

R5: The decision is sometimes impulsive, if I walk into a shop and I see this new chocolate, I

might want to try it out. But its mostly pre-planned, depending on TV advertisements or

what friends recommend.

R3: What friends or family says matters a lot. Sometimes, a cousin whos over will mention

how good a new brand or chocolate is, and then you have to try it out.

R6 agreed with R5.

What are the price ranges for the chocolates you buy most often?

R1: Rs. 5-20

R2: Rs 10-20

R3: Rs. 10-20, willing to spend up to Rs. 60 on chocolates, on the day I get my pocket

money!

R4: Rs. 10-25 generally, but Ill go above that on occasions, or when I want to treat myself.

R5: Rs. 10-20, mostly.

R6: Rs. 10-20 most of the times, sometimes Rs. 5 chocolates when I just want to have a quick

bite. But mostly, Rs. 10-20.

Does the price range change, on any occasion? How so?

R1: I buy gift packs, on special occasions. Sometimes, for up to Rs. 500

R2: I do too, but for Rs. 100 to Rs. 200.

R3, R4, R5 and R6 agreed that Rs. 100-200 was a suitable range to spend on chocolates for

others.

Have you ever tried a chocolate because of its name or packaging?

R1: Yes, the brand name matters a lot. The packaging is usually secondary.

R2: If a brand has great chocolates in the market, then if they come up with something new,

Ill definitely try that. The ads have a lot to do with the name as well, for me, because if theads are attractive, Id want to try out the chocolate.


51/66


R3 and R4 agreed.

R4: Dairy Milks Kitna Maza Aye Rey campaign was pretty good, in terms of attracting

people.

R5: I think the advertisements are a really big factor in the purchase decision, at least as far as

the first purchase in concerned. I tried out Candylands Fanty because it had a really catchy

jingle. Where the packaging is concerned, international brands tend to be really well-packed,

so its something you have in mind, when youre making purchases for gifts.

R3: I look at the packaging when Im planning to give the chocolates to someone else, too. If

theyre well-packed, that reflects on the quality. Local chocolates dont have very great

packaging.

R4: Except Dairy Milk. If you look at Now or Jubilee, the packaging is really bright. It

doesnt look fun or sophisticated.

R6: But the colours of the packaging can affect the purchase decision sometimes, if its too

dark or too bright, I wont go for it. If the brand has a good name, though, or if its current

portfolio is doing well, Ill try out its new SKUs irrespective of the packaging. So in the end,

packaging is secondary. I wouldnt leave a great chocolate, just because it had bad packaging.

R1, R2 and R3 agreed that taste matters more than packaging.

If you could find lower-priced milk chocolates, would you go for them instead of your

favourite brand?

R1: Not really. I dont think the taste could be much better.

R2: Price does matter, but not more than taste. If a brand can offer good quality milk

chocolate for a lower price, then Ill switch. Otherwise, I wont.

R3: Buying low-priced chocolate is a waste of money, if the taste isnt good. In the end, most

of us buy chocolates for the taste. So even though I dont buy very expensive chocolates, Rs.

10 - 20 generally, I wouldnt buy a cheap chocolate, just to save Rs. 5.

R4: Taste is more important. Especially because you can get Dairy Milk for pretty low prices,

and its not a bad milk chocolate. Its fine, at Rs. 10.

Everyone else agreed that they would only buy the lower-priced chocolate, if its taste was

better than or at least comparable to Rs. 10 Dairy Milk.

What do you think current chocolates lack? What would you change in them?

R1: There isnt much filling. Especially the Rs. 5 and Rs. 10 ones, the actual quantity of the

chocolate is pretty low.

R2: That even happens with Dairy Milk, which is a pretty good chocolate overall.

R3: Some of them have availability issues. Now is popular, but its still hard to get.

R1 and R4 agreed that Now was hard to get.

R5: Now is low on caramel content, too. It could be a good chocolate, if it had more caramel.

R4: I think the biggest issue is the quality. You have a lot of low-priced chocolates, but I

wouldnt want to buy any of them, because the taste is bad, some of them are too sweet, and

some arent sweet at all. With Dairy Milk, the Rs. 10 bar is too thin.

R6: They need to work on their quantity and fillings. I think availability is secondary,

because if theres demand, shopkeepers will automatically start getting those chocolates.

How do you define your ideal low-priced chocolate? Is there a brand right now that you

find perfect? Which one?


52/66


Everyone said a Rs. 15 - 20 chocolate bar, with a reasonable quantity wou