Professional Documents
Culture Documents
Group 4 RMD Final Report - Amul
Group 4 RMD Final Report - Amul
OF AMUL CHOCOLATES
Submitted by:
Group -4
Industry Overview:
80 75
60
40
20
0
2013 2014 2015 2016 2017 2018
Chocolate Industry is growing at 12% in 2018. Customer preference is shifting towards premium
chocolates, which is showing a rise in sales. Chocolate pouches & bags records the highest growth of
22% in 2018. The popularity of premium chocolates is increasing due to improving the lifestyle of
consumers, growing influence of international cuisines & premium chocolates considered as a giftable
option. Major players like Mondelez India are focussing towards premium products with customers
ready to pay a higher price for premium chocolates.
Variety in terms of flavours, ingredients are becoming new trends in Indian chocolate industry & the
consumers appreciate those changes. In addition to Fruit & Nut, other ingredients like cashew,
caramel, almonds-based chocolates available in affordable price points are attracting more chocolate
lovers. Some of the new flavours like coffee, cinnamon is providing fresh taste from traditional flavours
like strawberry, orange, etc.
With growing health-conscious customers, customers are choosing dark chocolates (low sugar
content) as a substitute for milk & other high sugar content. Companies like Mondelez & Amul are
producing dark chocolates with the expectation that future trend shift towards dark chocolates.
Competitive Landscape:
Others 20.50%
Mondelez India is the market leader with 54% market share in 2018. In the case of the product,
Mondelez’s Dairy Milk holds the maximum market share of 27.3%. Amul chocolate market share is
around 1%. Many new players are entering the market like CAMPCO & Foreign players like Ferrero are
investing heavily on the Indian market since the steady growth of the chocolate industry expected
soon.
With Amul chocolate focussing on dark chocolate, its’ competitor Bournville market share is around
0.7%. Though Bournville is the famous dark chocolate brand, the market is in the nascent stage. There
is an opportunity for companies to gain significant market share by new products which cater to the
need of the customers.
Distribution Channels:
Forecourt Retailers
- 0.3% Food/Drink
specialists - 6.4%
Supermarkets -
8.4%
In chocolate Industry, Store Retailing channel plays a vital role in sales. Internet Retailing is close to
0%, which clearly explains chocolates are impulsive buying. Independent small groceries account for
70% of the total sales in India. Modern retailers like hypermarkets & supermarkets are slowly gaining
traction and increasing its’ share while the traditional is going down consistently.
Structure of Discussion: We have constructed the moderator’s outline with reference to our MRPs
sequenced in the following steps:
Depending on the nature of the question, we went around the group for a few questions and let the
group answer for others. Below section highlights the key insights obtained from the discussion.
Triggers for Consumption: Participants mentioned that they eat chocolates when under stress, when
hungry, after meal snack and because they generally like sweet foods. Group was distributed evenly
within these triggers for consumption.
Buying Behaviour: Majority of the group said they purchase smaller chocolates for self- consumption
and bigger and premium chocolates for gifting and they generally do not spend more than Rs. 40-60
for self-consumption.
Brand Preference: Cadbury is a clear favourite in chocolates for all the participants; they have also
mentioned other brands like Galaxy, Mars, and Nestle (Kit-kat) when asked about other brands they
prefer. If their preferred brand is not available in the store, only half the group said they would buy
other brands; others are very loyal to their preferred brands.
Participants strongly associated Amul with dairy products with high quality and trust as its value
proposition. They were very quick to recall the taglines utterly butterly delicious, Taste of India and
Amul girl mascot used in advertisements. Participants also mentioned Amul is their first preference
when it comes to dairy products, and the availability of Amul products is high in North India compared
to the south.
Taste and Experience: All participants felt Amul chocolates have high sugar content, which makes them
too sweet. Even the dark chocolates have higher sugar content compared to other dark chocolates.
Most participants felt Amul chocolates are chewy and do not melt easily in the mouth, which is one
of the prime attributes which people look for in chocolate. Participants also said that Amul chocolates
leave small crumbs while breaking the chocolate which they did not like.
Variant Awareness: Out of 10 variants of chocolates across 3 categories (milk chocolate, dark
chocolate, and tropical flavours), participants were aware of only 5 variants – dark chocolates, bitter
dark chocolates, orange flavoured, fruit n nut and tropical flavours.
Packaging: While half the group felt packaging gave a premium appeal, the other half said the
packaging is not very attractive. We have observed that there is an influence of variant awareness in
this response.
Size and Pricing: The group unanimously agreed that Amul chocolates are economical and offer more
size for the same price compared to other chocolate brands like Cadbury. Amul chocolates are
generally available in INR 25-30 range, and the next size is priced above INR 100. Participants felt that
a size offered in a mid-range between these two price points would be preferred.
Availability: Most of the participants were not aware of Amul chocolates before coming to IIMB. They
did not generally find Amul chocolates in retail and kirana stores. In certain stores where Amul
chocolates were available, visibility was low. They were not placed in places where it is easy to notice
for people.
Amul Chocolates for Gifting: Participants were generally hesitant in considering Amul chocolates for
gifting in general. However, 1 participant had gifted a chocominis version earlier because it was found
to be good value for money and was a pack of small chocolates. One other participant said she would
consider Amul chocolate for gifting because she felt the packaging is premium, offers a size which is
giftable, and is unique.
Tasting Exercise:
Given the low awareness of Amul chocolates among consumers, we thought all the participants would
not have tried many variants of Amul chocolates. To take feedback on different variants, we have
asked the participants to taste the chocolates and have discussed on various attributes of those
chocolates. We have done this exercise for Milk chocolate, Fruit n Nut dark chocolate, Almond bar and
Bindaaz (wafer based) chocolates, which are representative of Amul chocolate portfolio.
Taste
Pack size
Appeal
Advertisements: None of the participants have watched any Amul chocolate advertisement in any
form (TV, print media, or online) till now. Hence we have shown them an advertisement for dark
chocolates (AMUL Advertisement: https://www.youtube.com/watch?v=uqoDt0ygPas) to get their
feedback
After the tasting exercise, participants liked the Dark chocolate fruit n nut version and had some value
perception in their minds, but when they watched the advertisement, they felt the advertisement is
visually appealing with good graphics, but the values and benefits are not communicated.
DEPTH INTERVIEW
Quantity Experimentation
Packaging Giftable
Price
Availability
Brand association
Taste Too sugary- even in case of dark perfect mixture of cocoa and sugar
chocolates. content
Texture Hard and chewy- takes longer time Soft and melts easily
to melt
Observed Metrics Amul chocolates Cadbury
Quantity Available in small or large packs Available in all size packs from small,
only medium to large
Variety Large no of variants in dark Large no of variants in milk
chocolates compared to less chocolate compared to less no of
variants in milk chocolate variants in dark chocolate
Packaging Different colourful letters and Premium - gold inner packaging and
attractive rigid outer pack silky outside packaging
Price Relatively cheaper- value for Expensive
money
Availability Amul stores Kirana stores, supermarket
Awareness No promotions in stores or any Emotionally attached to the brand
other channels and no offer packs due to ads and promotions in
different stores
Type of customer Experimental Safe and loyal
Brand association Value for money Ease of availability and premium
• To understand the perception of AMUL brand & Amul Chocolates in the mind of consumers
• Positioning of AMUL brand & Amul Chocolate is in line with customer’s brand perception
• AMUL's primary focus is on dairy products and has high SKU assortment.
• Customers associate themselves AMUL tagline 'The Taste of India'.
AMUL craters to every Indian taste bud.
• The dark varieties of AMUL Chocolates are preferred over the others
• AMUL Chocolates have Low Awareness and Low availability
AMUL 20 Respondents
Elicitation Stage
AMUL Chocolates 20 Respondents
AMUL 16 Respondents
Mapping Stage
AMUL Chocolates 16 Respondents
1. Elicitation:
Salient associations for the brand are determined during this stage. The responded are asked open ended
questions such as what comes to their mind when they think of ‘AMUL/ AMUL Chocolates’. Brand associations
which occur more than 50% are selected for the next step.
The shortlisted associations are displayed in Annexure 1.
2. Mapping:
The participants were asked to map their associations with ‘AMUL/ AMUL Chocolates’ based on the
shortlisted brand attributes and show the strength of association (single, double or triple line).
Brand Concepts maps displayed in Annexure 2.
3. Aggregation:
The brand maps are aggregated, and the following information tabulated:
BRAND – AMUL
Indicative Table:
Ratio of
Frequency Frequency 1st
Brand No. of Subordinate Superordinate
of of 1st order
Attributes interconnection Connection connection
mention Mention Mention
%
Amul Girl 9 15 8 88.89% 1 12
Catchy ads 9 9 5 55.56% 4 4
Dairy Products
(Milk, Butter) 9 11 8 88.89% 0 8
Gujarat 7 6 2 28.57% 5 1
Tag lines 6 4 2 33.33% 4 3
Value for
Money 6 4 4 66.67% 2 0
Good quality 6 9 3 50.00% 3 6
Ice creams 6 6 5 83.33% 0 5
Childhood 6 4 2 33.33% 3 1
Desi 6 4 4 66.67% 0 4
Reliable 6 5 2 33.33% 4 1
Trust 6 1 4 66.67% 0 1
Cooperative 4 5 1 25.00% 2 3
Healthy 5 4 1 20.00% 2 3
Tasty 4 2 1 25.00% 2 0
Following are determined using Aggregation steps for BCM:
9
Point of Inflection.
Sudden increase in
the change of slope
Frequency
2
1 1
0
6 5 4 3 2 1
No.of Inter Connections
Sudden increase in
Frequency
2 2 2
1 1
0
7 6 5 4 3 2 1
No. of Inter Connections
Key Insights:
Amul Brand:
• People associate positively with Amul Brand. The Amul Girl and Tagline is very popular.
• There is high awareness about Amul products and ad campaigns are highly effective
• Amul serves as the benchmark for trust and quality. Products are value for money.
• The branding as a cooperative of Gujrati farmers plays well and people associate it as a social
enterprise rather than corporate.
Amul Chocolate:
• The awareness level of Amul chocolates is very low and respondents hardly recall watching any
advertising.
• The availability of Amul chocolates is also low and availability is low. Most of the respondents
had learnt about AMUL Chocolates only after coming to Campus.
However, respondents seem to love the dark chocolate variants, the taste, good/ premium packaging,
large packs and consider it for gifting. The fruit n nut variant is immensely popular.
BLIND TEST
Objective: To understand how consumers perceive the various attributes of Amul chocolates without
having any biases about the brand and comparing it with a competitor’s product on different
attributes.
Methodology followed:
Screening and Participant Composition: We wanted neutral participants who are not aware of the
project we are working on. Hence, we have selected 5 PGP1 students, 4 of them are regular consumers
of dark chocolate and 1 person is not a regular consumer.
Process: We have selected Amul dark chocolate 55% cocoa and Cadbury Bournville 50% cocoa for this
exercise. This exercise is performed separately with each of the 5 participants. Before the start of
activity, each participant is blind folded and following sequence of steps are followed
1) Asked the participant to smell both Amul and Cadbury chocolates and took feedback about
the same
2) Asked the participant to take a tiny bite and asked about taste, texture and feel of both
chocolates
3) Asked participant to take one normal sized bite and asked likes and dislikes on attributes of
taste, feel, hardness / chewiness and overall rating for both the chocolates
4) Gave two cubes of Amul chocolates and equivalent size of Cadbury and took the same
feedback as mentioned in point 3
Above mentioned sequence of steps are followed for all 5 participants by interchanging the order of
Amul and Cadbury chocolates for tasting. Between transitioning between chocolates, we have given
them water and other non-sweet snacks to neutralise the tastes. Results from the exercise are as
shown below
The most common answers for Amul after the tests are as follows:
Smell: The participants were asked to smell the product given to them these are some of the responses
“smells like milk Chocolate, might have Nuts and Raisins, has fruity smell”
Tiny Bite: After having a small bite these were some of the responses “Taste changes from Sweet to
bitter, lot bitter “.
First Bite: Responses after first bite “has fruity flavour, hard and has sensation of having particles,
Nuts and raisins may be present”
Like: Some of the reason for liking the product “Not Sticky, optimum bitter and sweet”
Dislikes: Some of the reason for disliking the product “Hard to break, texture not smooth, has
bitterness”
Aftertaste: Responses for after taste included “too Sweet, not Smooth, some hard particles may be
present, bitterness has decreased”
Like: Some of the reason for liking the product “Not Sticky sensation in mouth”
Dislikes: Some of the reason for disliking the product “too Sweet for dark chocolate, sensation of
presence hard particles”
The most common answers for Bournville after the tests are as follows:
Smell: The participants were asked to smell the product given to them these are some of the responses
“smells like milk chocolate, might have nuts “
Tiny Bite: After having a small bite these were some of the responses “Sweet, little bitter, has soft
texture”
First Bite: Responses after first bite” might be Bournville, has smooth sensation, optimum bitterness,
little sticky in mouth”
Likes: Reason for liking the product included “optimum bitterness and sweetness, taste, softness of
the product”
Aftertaste: Responses for after taste included “product is smooth, bitter, but bitterness has
decreased”
Likes: Reason for liking the product included “optimum bitterness and sweetness, taste, bitterness has
decreased”
To sum up the common responses were that Amul was on sweeter side after taking couple of bites.
On the other Bournville was smooth.
Demographics:
The following graphs show the age and gender distribution of the respondents who filled in the survey.
As most of respondents were from IIM Bangalore the respondents lie in the age group of 21-25, and
are students.
Male Female Student Employed Not employed <20 years 21-25 years
26-30years 31-35 years
1% 9%
20%
10%1%
37%
63%
89%
70%
Category need:
We tested for the category need, if maximum number of consumers still prefer chocolates and to
identify consumers for further analysis in different types of chocolates. Among 142 respondents, 92%
responded saying that they consume chocolate on different frequency for different reasons and 8%
responded saying that they do not consume chocolates.
NO
8%
YES
92%
11% 21% 8%
25% 9%
13%
7% 17%
6%
25% 24% 21% 15%
4
15%
1%
2% 28%
8% 3
10%
7% 17% 2
4 4 4 4 4
14% 4 4
3 3
Temptation
Galaxy
Snickers
kitkat
mars
Cadbury diary milk
amul chocolates
ferrorochers
snickers temptation
galaxy Mars
Others
Place of Purchase - Chocolate Category:
From this survey, we observe that 30% people purchase from supermarkets and 27% in kirana stores
and only 11% from Amul exclusive stores. Around 9% are purchasing from online we observe it may
be high end cholates which have discounts.
9%
11% 30%
23%
27%
2
3 3 3 3
3 3
3 3
1
0
Caramel
Nuts
Sugarless
Fruity
Low sugar
Dark chocolate
WafferHigh sweetness
Scenario’s when Chocolates are Consumed:
Respondents were asked what occasions they like to prefer chocolates. We could see there was no
13%
21%
CLUSTER ANALYSIS
Amul chocolates can target the cluster 1 segment, as they are more health conscious and they believe
in value for money in the product they consume. Being bigger size bar at comparatively low price and
also dark chocolate and low sugar variants, can attract this segment with a little improvement in the
chewiness of the chocolate.
Final Cluster Centers
What
factors are important for you with respect to chocolate 4 4 0 1
consumption? - Price (Pocket Friendliness)
What
factors are important for you with respect to chocolate 4 4 0 1
consumption? - Size (Quantity)
What
factors are important for you with respect to chocolate 4 4 0 5
consumption? - Smoothness - Melting Sensation
What
factors are important for you with respect to chocolate 4 4 0 1
consumption? - Brand image
What
factors are important for you with respect to chocolate 4 3 0 4
consumption? - Packaging
What
factors are important for you with respect to chocolate 5 4 0 5
consumption? - Availability
What
factors are important for you with respect to chocolate 4 3 0 5
consumption? - Chewiness (Hard)
What
factors are important for you with respect to chocolate 5 5 0 5
consumption? - Taste
What
factors are important for you with respect to chocolate 4 3 0 3
consumption? - Variety/ Flavors
What
factors are important for you with respect to chocolate 4 2 0 1
consumption? - Calories
What
factors are important for you with respect to chocolate 4 3 0 1
consumption? - Impact of advertisements
REGRESSION ANALYSIS
Linear regression between rating of favorite chocolate and various features:
Dependent variable is overall rating of the favorite band. Independent variables are features like price,
packaging etc. From the above regression analysis,
Overall rating = 0.79 + 0.221* Fruit Flavors – 0.339* High sweetness - 0.321* Sugarless variants +
0.339* Smoothness + 1.172* Taste + 0.329* Calories
Overall rating is positively affected by the fruit flavor, better taste, smoothness and calories factor.
Consumer deter away from high sweetness and sugarless variants. This implies consumer prefer mid-
level sugar variants.
Coefficientsa
Standardize
Unstandardized d
Coefficients Coefficients
a. Dependent Variable: What is the overall rating of your favorite chocolate on a scale of 1 to 5 (5 being
the highest)
Factor 1 is heavily loaded by variables like price, Size, Brand Image, Calories, Impact of advertisements
etc.
Factor 2 is heavily loaded by variables like smoothness, packaging, availability, chewiness, taste and
variety
Rotated Component Matrixa
Component
1 2
What
factors are important
for you with respect to
.880 .263
chocolate
consumption? - Price
(Pocket Friendliness)
What
factors are important
for you with respect to
.879 .286
chocolate
consumption? - Size
(Quantity)
What
factors are important
for you with respect to
chocolate .398 .690
consumption? -
Smoothness - Melting
Sensation
What
factors are important
for you with respect to
.837 .347
chocolate
consumption? - Brand
image
What
factors are important
for you with respect to
.424 .787
chocolate
consumption? -
Packaging
What
factors are important
for you with respect to .421 .808
chocolate
consumption? -
Availability
What
factors are important
for you with respect to
.097 .876
chocolate
consumption? -
Chewiness (Hard)
What
factors are important
for you with respect to .448 .744
chocolate
consumption? - Taste
What
factors are important
for you with respect to
.503 .677
chocolate
consumption? -
Variety/ Flavors
What
factors are important
for you with respect to
.638 .401
chocolate
consumption? -
Calories
What
factors are important
for you with respect to
.747 .349
chocolate
consumption? - Impact
of advertisements
1
7.131 64.830 64.830 7.131 64.830 64.830 4.190 38.090 38.090
2
1.138 10.348 75.178 1.138 10.348 75.178 4.080 37.088 75.178
AMUL CONSUMERS
In this part of the report we will be delving deep in to the questions regarding MRP 2 i.e. about Amul
chocolate consumers and we will be reporting our insights.
From the 142 people who have filled the questionnaire, around 92% have mentioned that they
consume chocolates. From these chocolates consumers around 84.8% were aware of Amul
chocolates. In the below marketing funnel, we can see that around 65.9% of the chocolate consumers
i.e around 87 have eaten Amul chocolates.
Market Funnelling
From the 87 respondents who have tried Amul chocolates, 31 people have tried only dark chocolates,
25 people have tried milk chocolate, and rest 31 have tried both the variants. We observe that because
Amul as various flavours in dark chocolates that may be the prime reason that most of people have
tried dark chocolates when compared to milk chocolates.
Around 40 respondents of 87 have mentioned that they consume Amul less than once in two weeks.
When we compare with the overall chocolate consumption frequency only 9% have mentioned that
they consume less than once every two weeks, but for Amul chocolate consumers it is around 50%, it
clearly highlights Amul needs to increase consumption frequency or repeat buy rate among
consumers.
Place of purchase shows that around 47 people that is around 55% buy from Amul exclusive stores.
This was expected since most of respondents were from IIM Bangalore. When we compare with in
general chocolate purchase habits, around 27% buy from kirana stores (Traditional Stores) and around
30% from supermarket (Modern Trade), and around 23% buy from Baker or confectionaries. This
implies that if Amul needs to improve sales they need to improve their distribution in locations of
Baker or Confectionaries where they are falling behind by a little margin. When compared to total
chocolates purchase points Amul has better presence in Online, we observe that if they position
themselves in gift giving packs they may have more sales, since most of the chocolates for self-
consumption are on impulse purchasing.
We tried to understand how respondents’ rate Amul chocolates to their favourite or other chocolates
they have consumed. When we compare this results and other qualitative results in milk chocolates
category most of them mentioned dairy milk as their main favourite and rate 4.06 when compared to
Amul Milk chocolate 3.58. They have mentioned other milk chocolates as well but we have considered
Dairy milk for ease of comparison. But one thing which we observed is in people who consume only
dark chocolates, around 90% have mentioned that the other dark chocolate they have consumed is
Cadbury Bournville. When we compare the rating from the survey it very marginally ahead of
Bournville. So we observe that in the category of dark chocolates Amul has only few competitors and
it is only falling marginally behind them.
We have calculated Net Promoter Score to understand brand loyalty of Amul chocolates, by asking
how willing are they to recommend Amul Chocolates to others, and tabulated the results in the below
image. When we did the same calculations for those who have consumed only dark chocolates, we
got an NPS of 43.48% this shows that the loyalty among those who only consume dark chocolates is
very good. This may also imply that when consumer eat other versions of Amul chocolates like Milk
or Wafer Variants there perception of the brand is decreasing.
From our respondents who have mentioned they were aware of Amul Chocolates but who never tried
Amul Chocolates, we have tried to find out the reasons behind it. We could find that the prime reasons
were that they are loyal towards other brands, other opted that they don’t perceive Amul as chocolate
brand. So to promote sales Amul needs to not only places themselves as chocolate brand among
consumers but also should work towards brand switching.
Similarly, we also tried to find the out the reason among the respondents who chose they stopped
consumption of Amul chocolates the reason they have mention that it was too hard to melt in mouth
and other reason was because that they did not like the taste. In our research we found that dark
chocolate has greater content or portion of cocoa than milk fat so it may be the reason that it has
higher melting point and might me taking more time to melt when compared to conventional
chocolates.
Discriminant Analysis
We have conducted discriminat analysis for two groups of people, one who have consumed only dark
choalates and the other gorup consisting of those who have consumed only milk choalates.
On first case we have conducted for we have consider variables such as price, size, brand and taste at
overall macro level analysis. In the second case we have considered only indgridents to see if we can
differentiate between the group.
Case 1:
Group 1 consists of 25 respondents belonging to those who have tried onlt milk choaltes and second
group cosnsiteing of 31 belonging to those who have tried only dark choalate.
On the first look we can say that price, size and brand are important to separate the groups. When we
look at the second group consisting of dark chocolate consumers the price is rated at 3.57 which might
reflect that they are not price conscious and are ready to pay higher price, Similar in the case of size
and brand they may not be conscious as long as they get best taste or quality.
Group Statistics
Valid N (listwise)
Final Mean Std. Deviation Unweighted Weighted
1.0 Price 4.20 .645 25 25.000
Size 4.28 .458 25 25.000
Melting 4.44 .712 25 25.000
Brand 4.28 .542 25 25.000
Packing 4.20 .500 25 25.000
Availability 4.68 .557 25 25.000
Chewiness 4.24 1.012 25 25.000
Taste 4.80 .408 25 25.000
Flavours 4.08 1.038 25 25.000
Calories 3.60 1.291 25 25.000
Ads 3.24 1.128 25 25.000
2.0 Price 3.06 1.526 31 31.000
Size 2.87 1.384 31 31.000
Melting 4.42 .620 31 31.000
Brand 3.16 1.485 31 31.000
Packing 4.13 .806 31 31.000
Availability 4.81 .477 31 31.000
Chewiness 4.48 .890 31 31.000
Taste 4.74 .682 31 31.000
Flavours 3.90 1.165 31 31.000
Calories 3.16 1.828 31 31.000
Ads 3.23 1.746 31 31.000
Total Price 3.57 1.333 56 56.000
Size 3.50 1.279 56 56.000
Melting 4.43 .657 56 56.000
Brand 3.66 1.283 56 56.000
Packing 4.16 .682 56 56.000
Availability 4.75 .513 56 56.000
Chewiness 4.38 .945 56 56.000
Taste 4.77 .572 56 56.000
Flavours 3.98 1.104 56 56.000
Calories 3.36 1.612 56 56.000
Ads 3.23 1.489 56 56.000
When we look at the individual variables again the same three variables that is price, size and brand
are significant.
Tests of Equality of Group Means
Wilks' Lambda F df1 df2 Sig.
Price .817 12.064 1 54 .001
Size .695 23.730 1 54 .000
Melting 1.000 .013 1 54 .908
Brand .809 12.771 1 54 .001
Packing .997 .148 1 54 .702
Availability .985 .837 1 54 .364
Chewiness .983 .920 1 54 .342
Taste .997 .140 1 54 .709
Flavours .994 .351 1 54 .556
Calories .981 1.026 1 54 .316
Ads 1.000 .001 1 54 .972
When we look at the eigen value and Wilks lambda we are getting good results so we can continue
to draw inference. The results can be seen in the below tables. The amount of variance that this
model can explain can be observed from canonical correlation which is equalling to 0.743. The Wilks
Lambda is around 0.448, which as chi square coefficient of 38.996, and is significant at that variable
value.
Eigenvalues
Canonical
Function Eigenvalue % of Variance Cumulative % Correlation
1 1.235a 100.0 100.0 .743
a. First 1 canonical discriminant functions were used in the analysis.
Wilks' Lambda
Test of Function(s) Wilks' Lambda Chi-square df Sig.
1 .448 38.996 11 .000
The structure matrix is indicating that size, brand and price are the three variable in decreasing
order that contribute to weights of discriminant function.
Structure Matrix
Function
1
Size .597
Brand .438
Price .425
Calories .124
Chewiness -.117
Availability -.112
Flavours .073
Packing .047
Taste .046
Melting .014
Ads .004
The cross validated table below explain that cross validated cases are correctly grouped by 82.1%,
which is 25 % greater than occurring by chance of 50%.
Classification Results
Predicted Group
Membership
Final 1.0 2.0 Total
Original Count 1.0 24 1 25
2.0 5 26 31
% 1.0 96.0 4.0 100.0
2.0 16.1 83.9 100.0
Cross-validated Count 1.0 21 4 25
2.0 6 25 31
% 1.0 84.0 16.0 100.0
2.0 19.4 80.6 100.0
a. 89.3% of original grouped cases correctly classified.
b. Cross validation is done only for those cases in the analysis. In cross
validation, each case is classified by the functions derived from all cases
other than that case.
c. 82.1% of cross-validated grouped cases correctly classified.
Case 2:
Similar analysis was done for ingredients such as flavours, such as fruit and nut variant, cocoa
content, sugarless variant and so on.
Of all the variants sugarless variant is the only variable which is significant among all the variables.
Eigen value shows that it is low, and Wilks Lambda is high. But the Chi Square coefficient has a value
of 25.3349 and is significant. But because of the low eigen value and high Wilks lambda we need to
be very cautious to make any further interpretation. But on inferring from structure matrix it shows
that sugarless variant contributes to most of the model. So, we may say that dark chocolate
consumers are health conscious as well.
Eigenvalues
Canonical
Function Eigenvalue % of Variance Cumulative % Correlation
a
1 .669 100.0 100.0 .633
a. First 1 canonical discriminant functions were used in the analysis.
Wilks' Lambda
Test of Function(s) Wilks' Lambda Chi-square df Sig.
1 .599 25.349 9 .003
Structure Matrix
Function
1
Sugarless variants .477
Fruit & Nut -.347
Nuts -.302
Fruit Flavours -.299
Wafer -.261
High Sweetness .260
Low sugar .200
High cocoa (dark
.200
chocolates)
What flavours do you
look for in chocolates? - -.020
Caramel
5.0
4.5
Advertising
4.0 Size Price
Importance of Attributes
3.5
3.0 Brand Image
2.5
2.50 3.00 3.50 4.00 4.50 5.00
2.0
1.5
1.0
0.5 Availability Taste
0.0
Performance of Attributes
While brand image and availability are important factors in terms of purchase of chocolates Amul
Chocolates rank very low. This implies that although Amul Chocolates as a brand is known availability
and advertising are very low. This inhibits brand penetration. We can also conclude that it is highly
rated on price, taste and portion size. The distribution and ad campaigns must be revamped to
increase penetration and tap onto the potential.
Factor Analysis
Factor analysis was carried out to remove multicollinearity in different attributes that customers rated
for Amul Chocolates. The result of factor analysis is shown below:
Rotated Component Matrixa
Component
Factor 1 Factor 2 Factor
Price- Pocket Friendly -.126 .320 .739
Pack Size -.106 .818 .319
Smoothness .073 .823 .372
Brand Image .743 -.330 .213
Packaging .108 .294 .834
Availability .808 -.113 -.005
Chewiness-Hard .190 .215 .720
Taste .108 .854 .341
Variety .727 .196 -.130
Calories .734 .282 .273
Gifting .825 -.186 .143
Advertisement .802 .387 -.076
Competitor Mapping
Smoothness/ Low Nuttiness
Pocket Friendly
Amul Chocolates is more pocket friendly than Cadbury but less than snickers. It is at par with Nestle.
However, Amul chocolate is considered smoother due to the lack of nut varieties. Nestle is
considered smothered due to popularity of Milky Bar. Ferrero Rocher and Snickers are more on the
crunchy side. Cadbury had a whole assortment of chocolates ranging from milk chocolates, nuts,
wafers etc.
Test shows that results are significant with a sample mean of 3.9535
Similarly, one sample t-test is performed for appeal of the idea, with a test value of 3,
results obtained are as shown below
Test results suggest that appeal of the idea is also significant. Hence it can be concluded that
increasing availability of Amul chocolates is both appealing and has willingness to buy and
may results in increase of sales of Amul chocolates.
Concept 2: Introduce Gift Packs
Amul currently does not have gift packs like Cadbury celebrations and temptations, hence
we wanted to test the perception of consumers about gifting Amul chocolates
Question asked: Amul plans to introduce gift packs in the lines of Cadbury celebrations, how
likely are you to buy them?
We have performed similar hypothesis test as concept 1 for both appeal of the idea and
willingness to buy and the results obtained indicate that they are significant
Mean Appeal of the idea = 3.91
Mean willingness to buy = 4.01
Concept 3: Launch Indigenous Flavours
With growing interest in indigenous flavours in consumers, we have presented the concept
of introducing new indigenous flavours to test to test their interest in the same for existing
Amul consumers
Question asked: Amul is introducing new unique indigenous flavours like coconut, coccum
fruit etc. how likely are you to buy them?
Hypothesis test conducted for this concept also indicate that results are significant for both
appeal of the idea and willingness to buy
Mean Appeal of the idea = 3.78
Mean willingness to buy = 3.91
Concept 4: Sugarless Variants
For the health-conscious consumers who were not aware of Amul sugarless variants of
chocolates, we have presented Amul’s sugarless variant of chocolate which already exists in
the market to understand their interest of this category of people. From the survey we
understood there are a smaller number of health-conscious customers, hence the responses
for this concept question were less
Question asked: Amul has sugarless dark chocolates which have the richness of cocoa with
added antioxidant – how likely are you to buy them?
Mean Appeal of the idea = 4
Mean willingness to buy = 4
Although the size of this category is less in the surveyed sample, this can be a good product
for market at large because the share of health-conscious consumers is increasing.
Strategy Canvas
From our qualitative analysis we have understood that dynamics for dark chocolate and milk
chocolate category are very different, they have different preference, appeal people from
different psychographics and the competing brands also differ. Hence, we have constructed
separate strategy canvas for dark and milk chocolates for Amul.
Amul Dark Chocolate:
We have mapped the attributes of Amul and Cadbury Bournville which is Amul’s primary competitor
in dark chocolate category, obtained from quantitative analysis.
Price Pack Size Brand Image Packaging Availablity Variety Gifting Advertising
It can be observed that Amul dark chocolates perform better than Bournville in price, pack size and
variety and perform lesser than Bournville on brand image, availability and advertising attributes.
Based on the above comparison, we have identified attributes which can be raised and reduced as
shown below
Price Pack Size Brand Image Packaging Availablity Variety Gifting Advertising
The dotted line shown in the above graph is our recommendation. Below are the changes
Raise:
It should be noted that Amul milk chocolates is consistently performing lower than Cadbury.
Hence, we recommend that Amul has to try reaching Cadbury in all the attributes mentioned
above. There is a strong emotional association of consumers with brands like Cadbury in this
category. Marketing communication which is targeted to create good perception is a key to
success in this category.
Summary of insights with respect to MRP generated from various qualitative and
quantitative techniques are as follows:
FINAL RECOMMENDATIONS
From the insights and observations obtained from various qualitative methods, quantitative
methods and concept tests, we give below recommendation to improve sales and market
share for Amul chocolates
Increase Purchase from Existing Customers:
• Promote Amul as a Healthy Brand: Owing to the increase in market potential for
health-conscious consumers and already a strong position of Amul dark chocolates,
Amul should position themselves as a heathy brand to attract this niche market.
Competition is also not as high as in milk chocolates segment. This positioning can
corroborate well with other product offerings from Amul as well.
Below are the recommendations given by current Amul chocolate consumers
Consumer Recommendations
64
43 48
38
12
Amul can discontinue their wafer variant of chocolates as they are not doing well on any of
the attributes. Such products may even work against the brand image created from other
good products.
Reference:
• http://www.portal.euromonitor.com
• https://amul.com/
• https://en.wikipedia.org/wiki/Amul
• https://gizmodo.com/why-dark-chocolate-melts-in-your-mouth-not-in-your-han-
1757708302
• https://www.advertgallery.com/newspaper/amul-dark-chocolates-a-little-more-
delicious-ad/
• https://www.business-standard.com/article/companies/amul-and-the-chocolate-
factory-118100501271_1.html
APPENDIX
Survey Questionnaire
Greetings!! The survey is designed to gather information on chocolates. It will take five minutes
to fill this questionnaire. Responses will be anonymous and strictly used for academic purposes.
Chocolates
1Q. Do you eat chocolates? ( Pie-chart qn)
o Yes
o No
(If the candidate selects “No”, he will be directed to Q36)
2Q. When do you consume chocolates?
o After meals
o For snacking
o While travelling
o While watching TV, studying or reading a book
o Late Night
3Q. How often do you purchase chocolates?
o More than once a day
o Once a day
o Several times a week
o Once a week
o Once every two weeks
o Less than once every two weeks
4Q. How frequently do you consume chocolates?
o More than once a day
o Once a day
o Several times a week
o Once a week
o Once every two weeks
o Less than once every two weeks
5Q. What factors are important for you with respect to chocolate consumption?
Extremely Somewhat Neither Important Of little
Factors Unimportant
Important Important nor unimportant Importance
Price (Pocket Friendly)
Size (Quantity)
Smoothness - Melting
Sensation
Brand image
Packaging
Availability
Chewiness (Hard)
Taste
Variety/ Flavors
Calories
Impact of
advertisements
8Q Rate the following chocolates on the scale of 5(5 being highest & 1 lowest)?
Factors 5 4 3 2 1
10 Q. Rate your favorite brand chosen in the above question on each of the following
factors.
11Q What is the overall rating of your favourite chocolate on a scale of 1 to 5? (5 being the
highest)
____________
Amul Chocolate
13Q Arrange these in the decreasing order of importance when someone mentions about
Amul chocolates (First being the most important option)
Supermarket
Kirana store
Bakery or
confectioneries
Amul
exclusive Store
Online
17Q Which variant of Amul Chocolates have you tried?
o Milk Chocolate
o Dark Chocolate
o Both
18Q Based on your experience how do you rate the factors for Amul Dark Chocolate?
19Q Based on your experience how do you rate the Amul Dark Chocolates on following taste
factors?
20Q How is your overall experience with Amul Chocolates on a scale of 1 to 5 (5 being highest and
1 lowest) ___________________
23QHow is your overall experience with dark chocolate mentioned in Q21 on a scale of 1 to 5 (5 being
highest and 1 lowest) ___________________
24Q Based on your experience how do you rate Amul Milk Chocolate on following factors?
25Q How is your overall experience with Amul Milk Chocolates on a scale of 1 to 5 (5 being highest
and 1 lowest) ___________________
26Q Did you consume any other milk chocolate?
o No
o Yes (mention the name) ___________________
27Q Based on your experience how do you rate milk chocolate (mentioned in Q26) on the
following factors?
28Q How is your overall experience with milk chocolate (mentioned in Q26) on a scale of 1 to 5 (5
being highest and 1 lowest) ___________________
29Q Rank the following Amul chocolates in the order of preference
o Amul Dark chocolates
o Amul Milk chocolates
o Amul wafer-based chocolates
30Q How likely are you to recommend Amul Chocolates to someone on a scale of 1 to 10 (10 being
highest & 1 lowest)? _____________
31Q Which of the following changes would you recommend in Amul chocolates?
o Decrease sweetness
o Increase sweetness
o Include another medium size between the currently offered Rs.30 and Rs. 100
ranges
o Improve smoothness to enhance melting
o Improve availability in stores
Do not consume Amul Chocolates
32QWhy have you not tried Amul Chocolates
Neither
Highly Highly
Appealing appealing nor Unappealing
appealing unappealing
unappealing
Overall appeal
of the idea
After Concept testing all candidates will be asked to fill the following questions
on Demographics
38Q. Gender
o Male
o Female
39Q. Age
o < 20 Years
o 21–25 Years
o 26-30 Years
o 30-35 Years
o >35 Years
40Q. Profession
o Employed
o Student
o Not Employed
41Q. Relationship Status
o Married
o In a Relationship
o Single
Psychographic Question:
42Q Please describe your level of agreement with the following statements
Neither agree Somewhat Strongly
Factors Strongly agree Somewhat agree
nor disagree disagree disagree
Indian Products are better
than foreign products
The products of Patanjali are
best in class
The profit of Amul products
to the poor Indian Farmers
I am a foodie I like to
experiment different flavours
Ghost Pepper chocolate
seems to be interesting
I usually buy chocolates at
the checkout counter in retail
outlets
I like to gift chocolates during
festivals
I am very conscious and wear
only branded clothes.
Robert Downy Jr. is the brand
ambassador for one plus 7. It
must be good phone
CONCEPTS
Concept 1: (People who have answered 36 a)
Amul has sugarless dark chocolates which have the richness of cocoa with added antioxidant properties
and are good for heart.
** Thank you for providing your feedback. We appreciate the time you spent for us **
0: No
12Q Are you aware of Amul Chocolates 0-1 Nominal
1: Yes
Arrange these in the decreasing order of importance when someone mentions about amul
Let’s go and purchase 1-5 Ordinal
Not a cool brand 1-5 Ordinal 1: Most Important
13Q
Pocket friendly product 1-5 Ordinal 5: Least Important
Large number of variants 1-5 Ordinal
Dark Chocolate 1-5 Ordinal
1: Yes
14Q Do you eat Amul Chocolates 1-3 Nominal
2: No
2: Once a day
15Q how often do you consume Amul chocolates? 1-6 Nominal 3: Several times a week
4: Once a week
5: Once every two weeks
6: Less than once every two
weeks
Where do you purchase Amul chocolates from?
5: Extremely Important
Supermarket 1-5 Interval 4.Somewhat Important
3: Neither Important nor
16Q Kirana store 1-5 Interval
unimportant
Specialty Store / Bakery 1-5 Interval
2: Of little Importance
Amul exclusive Store 1-5 Interval
1: Unimportant
Online 1-5 Interval
1:Milk Chocolate
17Q Which variant of Amul Chocolates have you tried? 1-3 Nominal 2: Dark Chocolate
3:Both
Based on your experience how do you rate Amul Dark Chocolate on the following factors?
Price (Pocket Friendly) 1-5 Interval
Packet Size (Quantity) 1-5 Interval
Smoothness - Melting Sensation 1-5 Interval
Brand image 1-5 Interval 5: Extremely Satisfied
Packaging 1-5 Interval 4.Somewhat Satisfied
Availability 1-5 Interval
18Q 3: Neutral
Chewiness - Hard 1-5 Interval
2: Somewhat Unsatisfied
Taste 1-5 Interval
Variety/ Flavors 1-5 Interval 1: Extremely Dissatisfied
Calories 1-5 Interval
Gifting Someone 1-5 Interval
After Tasting
23. Is the package good?
24. Quantity / Size?
25. What do you think of Amul chocolates value for money?
Brand Concept Mapping: