STUDY ON CONSUMER PREFERENCES TOWARDS CHOCOLATES

REPORT

ON

STUDY ON CONSUMER PREFERENCES

TOWARDS CHOCOLATES

Submitted By: Submitted To:

Mohammad Shariq (81) Prof. V. Nagrani

Ashish Kr. Singh (69)

New Delhi Institute of Management

50,60( B&C), Tughlakabad Institutional Area, New Delhi-110062

E-mail: [email protected] Website : www.ndimdelhi.org

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STUDY ON CONSUMER PREFERENCES TOWARDS CHOCOLATES

CONTENTS

Page No.
 Executive Summery 3

 Chocolate As we know it 7

 Chocolate Production 8

 Consumption in India 12

 Project Analysis 13
 Objectives of the Study 13
 Limitations of the Study 13
 Research Methodology 14
 Data Analysis 14

 Findings 21

 Recommendations 21

 Conclusion 21

 Bibliography 22

 Questionnaire 23

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STUDY ON CONSUMER PREFERENCES TOWARDS CHOCOLATES

EXECUTIVE SUMMERY

Introduction

In this project we have conducted a survey on buying behavior and consumption

pattern of people for chocolates. During this research we have interacted with
people of Delhi. After this research we came to know how people perceive
chocolate on the variables like price, quality, advertisement, satisfaction, taste,
packaging, brand loyalty etc. We also came to know which particular brand of
chocolate is most preferred by people of different age groups. In this research we
have surveyed that how frequently and how much chocolate they consume,
whether they buy small, big or family pack. Trend of ongoing changes in their
likings has been shown in the report.

Consumer Preference

All marketing starts with the consumer. So consumer is a very important person to
a marketer. Consumer decides what to purchase, for whom to purchase, why to
purchase, from where to purchase, and how much to purchase. In order to become
a successful marketer, he must know the liking or disliking of the customers. He
must also know the time and the quantity of goods and services, a consumer may
purchase, so that he may store the goods or provide the services according to the
likings of the consumers. Gone are the days when the concept of market was let the
buyer’s beware or when the market was mainly the seller’s market. Now the whole
concept of consumer’s sovereignty prevails. The manufacturers produce and the
sellers sell whatever the consumer likes. In this sense, “consumer is the supreme in
the market”.

As consumers, we play a very vital role in the health of the economy local, national
or international. The decisions we make concerning our consumption behavior
affect the demand for the basic raw materials, for the transportation, for the
banking, for the production; they effect the employment of workers and

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STUDY ON CONSUMER PREFERENCES TOWARDS CHOCOLATES

deployment of resources and success of some industries and failures of others.

Thus marketer must understand this.

The study of the consumer preference not only focuses on how and why consumers
make buying decision, but also focuses on how and why consumers make choice
of the goods they buy and their evaluation of these goods after use. So for success
of any company or product promotion it is very necessary to depart its
concentration towards consumer preference.

Scope Of The Study

As learning is a human activity and is as natural, as breathing. Despite of the fact

that learning is all pervasive in our lives, psychologists do not agree on how
learning takes place. How individuals learn is a matter of interest to marketers.
They want to teach consumers in their roles as their roles as consumers. They want
consumers to learn about their products, product attributes, potential consumers
benefit, how to use, maintain or even dispose of the product and new ways of
behaving that will satisfy not only the consumer’s needs, but the marketer’s
objectives.

The scope of our study restricts itself to the analysis of consumer preferences,
perception and consumption of Chocolates. The scope of our study also restricts
itself to South Delhi region only.

Objectives Of The Study

 To know about the customer satisfaction level associated with chocolates

and the customer preference level.

 To study the factors affecting the consumption pattern of chocolate.

 To suggest remedies for the weaker brand on how to recapture market share
and increase consumption level.

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STUDY ON CONSUMER PREFERENCES TOWARDS CHOCOLATES

Limitations Of The Study

In attempt to make this project authentic and reliable, every possible aspect
of the topic was kept in mind. Nevertheless, despite of fact constraints were
at play during the formulation of this project. The main limitations are as
follows:
 Due to limitation of time only few people were selected for the study.
So the sample of consumers was not enough to generalize the findings of
the study.

 The main source of data for the study was primary data with the help
of self-administered questionnaires. Hence, the chances of unbiased
information are less.

 People were hesitant to disclose the true facts.

 The chance of biased response can’t be eliminated though all necessary steps
were taken to avoid the same.

Research Methodology

Sample Size- 50 Consumers

Research Instrument

This work was carried out through self-administered questionnaire. The

questions included were dichotomous, open-ended and offered multiple
choices.

Data Type

The Primary data has been collected directly from respondent with the help
of structured questionnaires.

The secondary data has been collected from internet.

Findings

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STUDY ON CONSUMER PREFERENCES TOWARDS CHOCOLATES

 Mostly people are influenced by flavor/taste of chocolate.

 Mostly people prefer Cadbury’s Dairy Milk.

 The traditional Indian sweets is getting substituted by chocolates

among upwardly mobile Indians.
 Television is the best medium for the advertisement of chocolates.
 Nestle is the weaker brand as compared to Cadbury.
 Milk Chocolate is the least preferred sub-brand.

Recommendations

 For promotional offers, company should go for free gifts rather

than going for other ways.
 Nestle should concentrate on creating brand awareness and on
packing.
 Companies should concentrate more on television for
advertisement because mostly people get attracted through it.

CONCLUSION

A survey of the people has been conducted to know the liking

pattern of chocolates. It is observed that overall people like to eat
Cadbury brand rather than any other.

It is concluded that mostly people preferred Dairy Milk of

Cadbury due to its flavor/taste, quality and image and due to its
hard form.
Some people often like to have a chocolate with good flavor,
quality and crunchiness so they are going towards Kit Kat and
Munch of Nestle due to its taste and crunchiness .It is thus
concluded from the facts collected that mostly people prefer to buy
big pack of their favorite chocolate, and sometimes some of them
go for small and family pack.

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STUDY ON CONSUMER PREFERENCES TOWARDS CHOCOLATES

Chocolate as we know it

The first mention of chocolate being eaten in solid form is when bakers in England
began adding cocoa powder to cakes in the mid 1600’s. Then in 1828 a Dutch
chemist, Johannes van houten, invented a method of extracting the bitter tasting fat
or “cocoa butter” from the roasted ground beans, his aim was to make the drink
smoother and more palatable, however he unknowingly paved the way for solid
chocolate as we know it.

Chocolate as we know it today first appeared in 1847 when fry & sons of Bristol,
England – mixed sugar with cocoa powder and cocoa butter (made by the van
houten process) to produce the first solid chocolate bar then in1875 a Swiss
manufacturer,

Daniel peters, found a way to combine (some would say improve, some would say
ruin) cocoa powder and cocoa butter with sugar and dried milk powder to produce
the first milk chocolate.

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STUDY ON CONSUMER PREFERENCES TOWARDS CHOCOLATES

CHOCOLATE PRODUCTION

The cocoa-bean -- the heart of the sweetest delicacy in the world -- is bitter! This is
why, up to the 18th century some native tribes ate only the sweetish flesh of the
cocoa fruit. They regarded the precious bean as waste or used it, as was the case
among the Aztecs, as a form of currency.

The Varieties

There are two quite different basic classifications of cocoa, under which practically
all varieties can be categorised: Criollo and Forastero cocoas. The pure variety of
the Criollo tree is found mainly in its native Equador and Venezuela. The seeds are
of finer quality than those of the Forastero variety.

They have a particularly fine, mild aroma and are, therefore, used only in the
production of high-quality chocolate and for blending. However, Criollo cocoa
accounts for only 10% of the world crop. The remaining 90% is harvested from
trees of the Forastero family, with its many hybrids and varieties. The main
growing area is West Africa. The cocoa tree can flourish only in the hottest regions
of the world.

The Harvest

Immediately after harvesting, the fruit is treated to prevent it from rotting. At

fermentation sites either in the plantation or at, collecting points, the fruit is
opened.

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STUDY ON CONSUMER PREFERENCES TOWARDS CHOCOLATES

Fermentation

The fermentation process is decisive in the production of high quality raw cocoa.
The technique varies depending on the growing region.

Drying

After fermentation, the raw cocoa still contains far too much water; in fact about
60%. Most of this has to be removed. What could be more natural than to spread
the beans out to dry on the sun-soaked ground or on mats? After a week or so, all
but a small percentage of the water has evaporated.

Cleaning

Before the real processing begins, the raw cocoa is thoroughly cleaned by passing
through sieves, and by brushing. Finally, the last vestiges of wood, jute fibres, sand
and even the finest dust are extracted by powerful vacuum equipment.

Roasting

The subsequent roasting process is primarily designed to develop the aroma. The
entire roasting process, during which the air in the nearly 10 feet high furnaces
reaches a temperature of 130 °C, is carried out automatically.

Crushing and shelling

The roasted beans are now broken into medium sized pieces in the crushing
machine.

Blending

Before grinding, the crushed beans are weighed and blended according to special
recipes. The secret of every chocolate factory lies in the special mixing ratios,
which it has developed for different types of cocoa.

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STUDY ON CONSUMER PREFERENCES TOWARDS CHOCOLATES

Grinding

The crushed cocoa beans, which are still fairly coarse are now pre-ground by
special milling equipment and then fed on to rollers where they are ground into a
fine paste. The heat generated by the resulting pressure and friction causes the
cocoa butter (approximately 50% of the bean) contained in the beans to melt,
producing a thick, liquid mixture.

This is dark brown in color with a characteristic, strong odour. During cooling it
gradually sets: this is the cocoa paste

At this point the production process divides into two paths, but which soon join
again. A part of the cocoa paste is taken to large presses, which extract the cocoa
butter. The other part passes through various blending and refining processes,
during which some of the cocoa butter is added to it. The two paths have rejoined.

Cocoa Butter

The cocoa butter has important functions. It not only forms part of every recipe,
but it also later gives the chocolate its fine structure, beautiful lustre and delicate,
attractive glaze.

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STUDY ON CONSUMER PREFERENCES TOWARDS CHOCOLATES

Cocoa Powder

After the cocoa butter has left the press; cocoa cakes are left which still contain a
10 to 20% proportion of fat depending on the intensity of compression.

These cakes are crushed again, ground to powder and finely sifted in several stages
and we obtain a dark, strongly aromatic powder, which is excellent for the
preparation of delicious drinks - cocoa. Cocoa paste, cocoa butter, sugar and milk
are the four basic ingredients for making chocolate. By blending them in
accordance with specific recipes the three types of chocolate are obtained which
form the basis of ever product assortment, namely:

Kneading

In the case of milk chocolate for example, the cocoa paste, cocoa butter, powdered
or condensed milk, sugar and flavouring - maybe vanilla - go into the mixer, where
they are pulverized and kneaded.

Rolling

Depending on the design of the rolling mills, three or five vertically mounted steel
rollers rotate in opposite directions. Under heavy pressure they pulverise the tiny
particles of cocoa and sugar down to a size of approx. 30 microns. (One micron is
a thousandth part of a millimetre.)

Conching

But still the chocolate paste is not smooth enough to satisfy our palates. But within
two or three days all that will have been put right. For during this period the
chocolate paste will be refined to such an extent in the conches that it will flatter
even the most discriminating palate.

Conches (from the Spanish word "concha", meaning a shell) is the name given to
the troughs in which 100 to 1000 kilograms of chocolate paste at a time can be
heated up to 80 °C and, while being constantly stirred, is given a velvet
smoothness by the addition of certain amounts of cocoa butter. A kind of aeration
of the liquid chocolate paste then takes place in the conches: its bitter taste

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STUDY ON CONSUMER PREFERENCES TOWARDS CHOCOLATES

gradually disappears and the flavor is fully developed. The chocolate no longer
seems sandy, but dissolves meltingly on the tongue. It has attained the outstanding
purity, which gives it its reputation.

CONSUMPTION OF CHOCOLATES IN INDIA

Chocolate consumption in India is extremely low. Per capita consumption is

around 300 gms in the urban areas, compared to 8-10kg in the developed countries.
In rural areas, it is even lower. Chocolates in India are consumed as indulgence and
not as a snack food. A strong volume growth was witnessed in the early 90’s when
Cadbury repositioned chocolates from children to adult consumption. The biggest
opportunity is likely to stem from increasing the consumer base. Leading players
like Cadbury and Nestle have been attempting to do this by value for money
offerings, which are affordable to the masses

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STUDY ON CONSUMER PREFERENCES TOWARDS CHOCOLATES

PROJECT ANALYSIS

Title of the project:

“Study of Consumer Preferences Towards Chocolates”

OBJECTIVES OF THE STUDY

 To know about the customer satisfaction level associated with chocolates

and the customer preference level.

 To study the factors affecting the consumption pattern of chocolate.

 To suggest remedies for the weaker brand on how to recapture market share
and increase consumption level.

LIMITATIONS OF THE STUDY

In attempt to make this project authentic and reliable, every possible aspect
of the topic was kept in mind. Nevertheless, despite of fact constraints were
at play during the formulation of this project. The main limitations are as
follows:
 Due to limitation of time only few people were selected for the study.
So the sample of consumers was not enough to generalize the findings of
the study.

 The main source of data for the study was primary data with the help
of self-administered questionnaires. Hence, the chances of unbiased
information are less.

 People were hesitant to disclose the true facts.

 The chance of biased response can’t be eliminated though all necessary steps
were taken to avoid the same.

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STUDY ON CONSUMER PREFERENCES TOWARDS CHOCOLATES

Research Methodology

Sample Size- 50 Consumers

Research Instrument

This work was carried out through self-administered questionnaire. The

questions included were dichotomous, open-ended and offered multiple
choices.

Data Type

The Primary data has been collected directly from respondent with the help
of structured questionnaires.

The secondary data has been collected from internet.

Data Analysis

Liking for the chocolates

Table:1

Liking for Chocolates Yes No

No. of respondents 47 3

From the above analysis of the given sample of 50 respondents it is concluded that
out of 50 people 47 people likes to eat chocolate while only 3 people don’t prefer
to eat chocolate.
All of them who don’t like to eat chocolate are above 25years of age.

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STUDY ON CONSUMER PREFERENCES TOWARDS CHOCOLATES

Different Age Groups

Table: 2

Age groups 0-15 15-25 Above 25

No. of respondents 16 18 16

According to the above analysis it is concluded that we have surveyed 50

respondents out of which 16, 18 and 16 belong to age groups 0-15, 15-25 and
above 25 respectively.

Preference According to Age Groups

Table: 3
Age Groups
Brand 0-15 15-25 Above 25
Cadbury 12 14 12
Nestle 7 6 6
Any Other 1

According to the above analysis it is concluded that people of different age groups
prefer mostly Cadbury brand of chocolate while Nestle brand is comparatively less
preferred by all age groups.

Brand Preference

Table: 4

Brand Preference of Consumers

Cadbury 38
Nestle 19
Any Other 1

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STUDY ON CONSUMER PREFERENCES TOWARDS CHOCOLATES

From the above analysis of given sample of 47 respondents who eat chocolates it is
concluded that only 19 people prefer to eat Nestle chocolates while 38 people likes
to eat Cadbury chocolates. Thus we see that 11 respondents preferred both brands.

Purchase of Chocolates

Cadbury

Table: 5
Cadbury Chocolates
Sub-brand No. of Respondents
Dairy Milk 35
5 Star 24
Perk 25
Celebrations 15
Temptation 10

Nestle
Table: 6
Nestle Chocolates
Sub-brand No. of Respondents
Kit Kat 10
Munch 9
Milky Bar 8
Bar-One 6
Milk Chocolate 4

Preference of Sub-brands Of Chocolates

Preference of Sub-brands of Cadbury Chocolates

Table: 7
Cadbury Chocolates
Sub-brand % of Respondents Rank
Dairy Milk 32.1 1
5 Star 22.01 3
Perk 22.93 2
Celebrations 13.76 4
Temptation 9.17 5

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Preference of Sub-brands of Nestle Chocolates

Table: 8

Nestle Chocolates
Sub-brand % of Respondents Rank
Kit Kat 27.02 1
Munch 24.32 2
Milky Bar 21.62 3
Bar-One 16.21 4
Milk Chocolate 10.8 5

Influencing Factors During Purchase

Table: 9

Factors Rank
Flavour/Taste 1
Price 8
Quality 2
Packaging 4
Form 6
Brand Image 3
Color 7
Shape 9
Quantity 5

According to the above analysis it is concluded that on an average mostly people

are influenced by flavor/taste followed by quality, brand and image. It is surprised
to know that very few people are influenced by price followed by shape of the
chocolate.

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STUDY ON CONSUMER PREFERENCES TOWARDS CHOCOLATES

Table: 9 Form of Chocolate

Form of Chocolate No. of Respondents

Hard 18
Nutties 12
Crunchy 14
Chew 6

According to the above analysis it is concluded that most of the people likes to eat
hard chocolate and chew form of a chocolate is least preferred.

Table: 10 Pack of Chocolates Preferred

Pack Size No. of Respondents

Small 14
Big 24
Family Pack 9

Table: 12 Promotional Offers

Promotional Offers No. of Respondents

Free gifts 29
Price Discounts 21
Any other 0

Table: 13 Factors affecting Purchase

Factors No. of Respondents

Advertisement 45
Suggestion from friends and relatives 14
Attractive Display 18
Doctors Advice 2
Brand Ambassadors 24
Ingredients 2

According to the above analysis it is concluded that Advertisement is the best

measure to attract customers to purchase more. Its impact is much more than
other factors.
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STUDY ON CONSUMER PREFERENCES TOWARDS CHOCOLATES

Table: 14 Media of Advertisement

Media of Advertisement No. of Respondents

Television 40
Newspaper 12
Brochures 7
Hoardings 8
Display 6

According to the above analysis it is concluded that television emerges as the best
media for advertisement of chocolates that compel consumers to buy. It is much
more than other ways as out of 47 respondents 40 are attracted to by through
television media while brochures are the least attracting media.

Table: 15 Frequency of Consumption

Frequency of Consumption No. of Respondents

Once in a fortnight 8
Daily 10
Weekly 19
Monthly 9
Quarterly 3

According to the above analysis it is concluded that mostly people purchase

chocolates weekly. Only 3 out of 47 purchase chocolates quarterly.

Table: 16 Consumer’s Brand Loyalty

Brand Loyalty Action No. of Respondents

Postpone your purchase 20
Switch over to another brand 4
Go to other shop to search for preferred 28
brand

According to the above analysis it is concluded that mostly people are loyal to the
brand as in the absence of availability of their preferred brand mostly people like to
search for it or they are ready to postpone their purchase.
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STUDY ON CONSUMER PREFERENCES TOWARDS CHOCOLATES

Table :17 Reaction Of Consumers If New Brand Is Introduced

Shift to new brand of chcolate No. of respondent

No, not at all 21
I may consider 11
Can’t say 15

According to the above analysis it is concluded that mostly people are addicted to
the same flavor or taste and they don’t want to change it as out of 47 respondents
21 are not ready to try new brand at any cost.

Reasons For Not Switching Over To Other Brands

All the consumers why they continue to buy the old brand gave various important
reasons. The most important reasons given by the consumers were:

Taste/Flavor, Quality, Brand Image and packaging.

Findings

 Mostly people are influenced by flavor/taste of chocolate.

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STUDY ON CONSUMER PREFERENCES TOWARDS CHOCOLATES

 Mostly people prefer Cadbury’s Dairy Milk.

 The traditional Indian sweets is getting substituted by chocolates
among upwardly mobile Indians.
 Television is the best medium for the advertisement of chocolates.
 Nestle is the weaker brand as compared to Cadbury.
 Milk Chocolate is the least preferred sub-brand.

Recommendations

 For promotional offers, company should go for free gifts rather

than going for other ways.
 Nestle should concentrate on creating brand awareness and on
packaging.
 Companies should concentrate more on television for
advertisement because mostly people get attracted through it.
 Nestle should have a Brand ambassador in the likes of Amitabh
Bachchan for Dairy Milk.

CONCLUSION

A survey of the people has been conducted to know the liking

pattern of chocolates. It is observed that overall people like to eat
Cadbury brand rather than any other.

It is concluded that mostly people preferred Dairy Milk of

Cadbury due to its flavor/taste, quality and image and due to its
hard form. Some people often like to have a chocolate with good
flavor, quality and crunchiness so they are going towards Kit Kat
and Munch of Nestle due to its taste and crunchiness .It is thus
concluded from the facts collected that mostly people prefer to buy
big pack of their favorite chocolate, and sometimes some of them
go for small and family pack.

Bibliography

www.google.com
www.wikipedia.com

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STUDY ON CONSUMER PREFERENCES TOWARDS CHOCOLATES

QUESTIONNAIRE

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STUDY ON CONSUMER PREFERENCES TOWARDS CHOCOLATES

Que1. Do you eat chocolate?

Yes No

Que2. Which brand of chocolate do you prefer?

Cadbury Nestle Any Other Please specify___________

Que3. Which sub-brand do you purchase?

Cadbury Nestle Other

Dairy Milk Kit Kat

5Star Munch

Perk Milky Bar

Celebrations Bar-One

Temptation Milk Chocolate

Que4. Rank the sub-brands of chocolates according to your preference? (1 for most
preferred)

Cadbury Nestle Other

Dairy Milk Kit Kat

5Star Munch

Perk Milky Bar

Celebrations Bar-One

Temptation Milk Chocolate

Que5. How much importance do you give to the following factors when you purchase a
chocolate? (Tick in the desired column)

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STUDY ON CONSUMER PREFERENCES TOWARDS CHOCOLATES

Factors Very Important Normal Least None

Important Important

Flavour/Taste

Price

Quality

Packaging

Form

Brand Image

Color

Shape

Quantity

Que6. Which form of a chocolate do you like?

Hard Nutties Crunchy Chew

Que7. What pack size do you purchase?

Small Big Family Pack

Que8. Which promotional offers attract you most?

Free gifts Price Discounts Any other

Que9. Which of these factors affect your purchase?

Advertisement Suggestion from friends and relatives Attractive Display

Doctors Advice Brand Ambassadors Ingredients

Que10. Which media of advertisement influence your purchase?

Television Newspaper Brochures Hoardings Display

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Que11. How frequently do you purchase chocolates?

Once in a fortnight Daily Weekly Monthly Quarterly

Que12 If your preferred brand is not available for repeat purchase then you will…

Postpone your purchase Switch over to another brand

Go to other shop to search for your preferred brand

Que13. If another brand of the same product appears in the market, will you prefer to stop
buying this brand and buy the new brand?

No, not at all I may consider Can’t say

Que14. If you don’t like to change to the new brand, then what are the reasons for
continuing to purchase the old brand?

_________________________________________________________________
_________________________________________________________________
_________________________________________________________________

PERSONAL DETAILS :

Name: ____________________________________________________________________

Address: ___________________________________________________________________

Age: 0-15 years 15-25years Above 25 years

Gender: Male Female

Phone Number: _______________________________

Marital status: ________________________________

Education: ________________________________________________

Profession: _________________________________________________

THANK YOU

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