Ankit pepsi

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PROJECT REPORT

ONA STUDY OF

FACTOR INFLUENCING CHOICE OF SOFT DRINKS

IN JAIPUR CITY

YEAR: 2012

UDAI INSTITUTEOF MANAGEMENT STUDIES

SUBMITTED BY GUIDED BY

ANKIT PUNDIR VISHVASH GUPTA

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CONTENTS

1) Preface..

2) Acknowledgement....

3) Executive Summary..

4) Introduction..

5) Company Profile.

6) Research Methodology...

7) Data Analysis & Interpretation..

8) Conclusion & Recommendations

9) Appendix.

10) Bibliography

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Preface

The beverages sector in India is one of the largest in terms of production,

consumption, export & growth prospects. These are two major sectors in the

beverages industry, i.e. Alcoholic Sector & Non Alcoholic Sector.

The purpose of this project is to find out the factors that affect the choice of

consumers when they purchase soft drinks (Non Alcoholic Beverages), the

brands preferred by the consumers for different flavors & about the

consumption pattern for different soft drinks.

Chapter one includes the introduction of the beverage industry framework of

India beverage industry & explains in detail about the non alcoholic beverage

sector.

Chapter two contains objectives of the research study & the research

methodology used for the project.

Chapter three also includes the analysis & interpretation of the research study.

Chapter four has various finding, conclusion & suggestions.

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Acknowledgement

Firstly, I thanks the all mighty by the grace of whom. This report was undertaken

and duly completed in time.

I take the opportunity to express my profound sense of gratitude and sincere

ineptness to Mr.Vishvash Gupta, under sympathetic, pains taking, and kind

guidance of whom, I was able to complete this repot.

I am grateful to Director of our institute Dr. Neeran Gautam who enabled me to

complete this report through their king guidance all the time.

I am very thank full to all the faculty member of the institute who helped me a lot

in it interpretation of date regarding my report without which this work would

never be completed.

I am also thankful to my parents who helped me morally and financially in

completion of this report.

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Executive summary

Soft Drinks Bounces Back

After a somewhat subdued performance in 2006 due to a recurrence of

the pesticides controversy, soft drinks sales bounced back strongly to record

double-digit volume growth in 2007. With carbonates growth back on a positive

upward curve alongside burgeoning sales of fruit/vegetable juice and bottles

water, soft drinks showed impressive growth in 2007. Off-trade volumes grew

slightly faster than on-trade volumes, driven by higher consumption of packaged

and branded soft drinks at home and on the go. The emergence of

supermarkets/hypermarkets, heavy consumer promotions and various new

product launches played a key role in driving off-trade volume growth.

Bottled Water and Fruit/vegetable Juice Continue to be Star Performers

Soft drinks sales in 2007 were propelled by bottled water and

fruit/vegetable juice with their healthier positioning helping to drive sales of soft

drinks. While carbonates posted single-digit growth in 2007, rebounding from

the pesticides controversy of 2006, it was bottled water and fruit/vegetable juice

that stormed ahead with high double-digit growth rates. Poor municipal

infrastructure for tap water has pushed sales of bulk packaged water to

households. Fruit/vegetable juice is growing as a result of increased consumerexpenditure on naturally healthy (NH) beverages. While functional drinks and

RTD tea also posted impressive growth in 2007, they were growing from a very

small base and are yet to achieve a critical mass in terms of establishing a loyal

consumer base.

Coca-Cola India and PepsiCo India slip in shares

With consumers showing a growing preference for healthier soft drinks

such as bottled water and fruit/vegetable juice rather than carbonates in 2007,the two carbonates giants suffered a marginal decline in share. Although both

players embarked on a change in strategy to focus more on non-carbonated

soft drinks in their portfolios, they were unable to maintain share and lost out

slightly too home-grown players Parle Bisleri and Dabur India. Coca-Cola India

launched Minute Maid and pushed the sales of its juices while PepsiCo India

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heavily promoted Tropicana, Aquafina and Gatorade during 2007. In addition,

Coca-Cola India and PepsiCo India embarked on re-branding themselves as

total beverage players and not just carbonates players.

Booming Modern Retail Brings Many Opportunities for Soft Drinks Players

With the retail scene in India undergoing a rapid metamorphosis with the

establishment of supermarkets/ hypermarkets and convenience stores, soft

drinks sales have benefited positively. People in urban areas are increasingly

flocking to supermarkets to pick up specialty items that are not available in the

kirana stores that are found all over India. Modern retail outlets have provided

soft drinks players with many opportunities to push their brands. Consumer

promotions for fruit/vegetable juice and emerging sectors such as RTD tea and

functional drinks are driving product sampling. Attractive point-of-sale (PoS)

displays and gift packs of concentrates are also drawing consumer attention in

supermarkets/hypermarkets.

Healthy Drinks to Drive Forecast Growth

Soft drinks is expected to post a strong performance on the back ofincreasing affluence amongst consumers and evolving lifestyles which lead to

consumers devoting less time to preparing fresh food and drink at home.

Competition from the unorganized sector will diminish gradually as consumers

show greater aversion to buying unpackaged and unbranded soft drinks from

street vendors due to health and hygiene concerns. Rising health

consciousness is also expected to drive sales of naturally healthy (NH) soft

drinks such as 100% juice and mineral water. In addition, soft drinks such as

sports drinks and juice-based carbonates are also expected to fare well over the

forecast period as consumers perceive them to be healthy.

Beverage Industry

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EMERGING BEVERAGE TRENDS:- The beverage industry is a shiftinglandscape as volume leading categories such as soft drinks and beer continueto experience share erosion while functional and health & wellness orientedcategories enjoy double-digit volume growth:

Soft Drinks -3.9% Domestic Beer -1.2% Energy Drinks +53% Bottled Water +25% RTD Tea +23% Sports Drinks +19%

Industry giants Coca Cola (http://www.coke.com/) and Pepsi

(http://www.pepsico.com/) continue to diversify their portfolios, as evidenced

with Cokes recent acquisitions involving Glaceaus vitaminwater

(http://www.glaceau.com/) and Fuze (http://www.drinkfuze.com/), as well as

Pepsis purchase of Izze Natural Soda (http://www.izze.com/).

Functional beverages continue to be the hottest segment in beverage, driven by

energy drinks (+53% growth in 2006). Red Bull (http://www.redbull.com/)

continues to lead the category, but challengers Monster

(http://www.monsterenergy.com/) and Rockstar (http://www.rockstar69.com/)

are realizing share leadership in select markets.

Bottled water is experiencing resurgence, +25% versus year ago, and is second

only to energy drinks in volume growth. Segment growth is driven largely by the

introduction of enhanced/fortified/flavored waters, led by Glaceaus vitaminwater

but featuring a slew of new entrants including: Metromint

(http://www.metromint.com/), Hint (http://www.drinkhint.com/), Propel Fitness

Water (http://www.propelwater.com/), SoBe Lifewater

(http://www.sobelifewater.com/), Aquafina Alive (www.aquafina.com), among

many others.RTD tea is riding the antioxidant wave to 23% volume growth

versus prior year, driven by consumers growing awareness of the health

benefits associated with antioxidants. Arizona (http://www.arizonabev.com/)

leads the category, followed by Lipton (http://www.lipton.com/) and Snapple

(http://www.snapple.com/) brands. Organic RTD tea brands are a growingmarket niche led by Honest Tea (http://www.honesttea.com/) and Republic of

Tea (http://www.republicoftea.com/).

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http://www.coke.com/http://www.pepsico.com/http://www.glaceau.com/http://www.drinkfuze.com/http://www.izze.com/http://www.redbull.com/http://www.monsterenergy.com/http://www.rockstar69.com/http://www.metromint.com/http://www.drinkhint.com/http://www.propelwater.com/http://www.sobelifewater.com/http://www.arizonabev.com/http://www.lipton.com/http://www.snapple.com/http://www.honesttea.com/http://www.republicoftea.com/http://www.coke.com/http://www.pepsico.com/http://www.glaceau.com/http://www.drinkfuze.com/http://www.izze.com/http://www.redbull.com/http://www.monsterenergy.com/http://www.rockstar69.com/http://www.metromint.com/http://www.drinkhint.com/http://www.propelwater.com/http://www.sobelifewater.com/http://www.arizonabev.com/http://www.lipton.com/http://www.snapple.com/http://www.honesttea.com/http://www.republicoftea.com/


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The Indian Beverage Market

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PROJECT BACKGROUND-

Beverage Market


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Indias one billion people, growing middle class, and low per capita

consumption of soft drinks made it a highly contested prize in the global CSD

market in the early twenty-first century. Ten percent of the countrys population

lived in urban areas or large cities and drank ten bottles of soda per year while

the vast remainder lived in rural an eras, villages, and small towns where

annual per capita consumption were less than four bottles. Coke and Pepsi

dominated the market and together had a consolidated market share above

95%. While soft drinks were once considered products only for the affluent, by

2003 91% of sales were made to the lower, middle and upper middle classes.

Soft drink sales in India grew 76% between 1998 and 2002, from 5,670 million

bottles to over 10,000 million and were expected to grow at least 10% per year

through 2012.2 8 In spite of this growth, annual per capita consumption was

only 6 bottles versus 17 in Pakistan, 73 in Thailand, 173 in the Philippines and

800 in the United States.

With its large population and low consumption, the rural market

represented a significant opportunity for penetration and a critical battleground

for market dominance. In 2001, Coca-Cola recognized that to compete with

traditional refreshments including lemon water, green coconut water, fruit juices,

tea, and lassi, competitive pricing was essential. In response, Coke launched a

smaller bottle priced at almost 50% of the traditional package.

INDIAN HISTORY

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India is home to one of the most ancient cultures in the world dating

back over 5000 years. At the beginning of the twenty-first century, twenty-six

different languages were spoken across India, 30% of the population knew

English, and greater than 40% were illiterate. At this time, the nation was in

the midst of great transition and the dichotomy between the old India and the

new was stark. Remnants of the caste system existed alongside the worlds top

engineering schools and growing metropolises as the historically agricultural

economy shifted into the services sector. In the process, India had created the

worlds largest middle class, second only to China.

A British colony since 1769 when the East India Company gained

control of all European trade in the nation, India gained its independence in

1947 under Mahatma Ghandi and his principles of non-violence and self-

reliance. In the decades that followed, self-reliance was taken to the extreme

as many Indians believed that economic independence was necessary to be

truly independent. As a result, the economy was increasingly regulated and

many sectors were restricted to the public sector. This movement reached its

peak in 1977 when the Janta party government came to power and Coca-Cola

was thrown out of the country. In 1991, the first generation of economic

reforms was introduced and liberalization began.

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COMPANY PROFILE

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COMPANY PROFILE


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In 1902 the Pepsi Cola Company was launched in the back room of

pharmacy and was applied in patent office for a trademark. The business

begins to grow on June 16, 1903 Pepsi Cola was officially registered with the

US patent office. That year Cola sold 7,968 gallons of syrup using them in

exhilarating aids digestion. It also awarded for franchised to bottle Pepsi to

independent investors, where number grew from just two in 1905 in cities of

charlotte and Durham, to 15 the following year, and 40 by 1907.

Gold Spot is considered as the first branded soft drink in India. It was

introduced by Parle in early forties. Coca-Cola was the first foreign soft drink to

be introduced in Indian markets. The Coca-Cola Company entered India in the

early fifties, when four bottling plants were setup at Bombay, Calcutta, Delhi and

Kanpur. Coca-Cola enjoyed a good beginning and dominated the market. Parle

exports private Ltd. the major domestic player later in 1970 introduced Limca, a

lemon soft drink. Before Limca introduction, they had attentively introduced

Cola Pepino which was soon with from the market.

In July 1977 Coca Cola left India following a public dispute over share

holding structure and import permits. As per FERA regulations the company

was required to indicate or clear operation. Coca-Cola left a big gap, which was

filled by several companies who came forward pushing different brands in

market.Parle products introduced their cola Thums Up; pure drinks introduced

Campa Cola along with orange and lemon. Modern Bakeries introduced

Double Seven Thrill Rush and Aprint. At the same time various regional

soft brands played an independent role in their respective territories like Dukeand Mangola etc.

After Coke was asked to leave India Pepsi began to lay plans to enter

this huge market. Pepsi worked with an Indian business group in seeking govt.

approval for its entry over the objections of both domestic soft drink companies

and anti-multinational legislators, Pepsi saw the solution to lie in making an offer

that Indian Govt. would find hard to refuse. Pepsi offered to help India export

some of its agricultural products in a volume that would cover more than the

cost of importing soft drink concentrate. Pepsi also promised to focusconsiderable selling efforts on rural areas to help their economic development.

Pepsi further offered to transfer food processing packaging and water treatment

to India in the way Pepsi started its operations in April 1989 for beverages,

snack food and export business. In 1990 first Pepsi, Cola was produced in

India.

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PepsiCo entered India in 1989 and in the span of a little more than a

decade, has grown to become the country's largest selling soft drinks company.

The Company has invested heavily in India making it one of the largest

multinational investors. The group has built an expansive beverage, snack food

and exports business and to support the operations are the group's 39 bottling

plants in India, of which 17 are company owned and 22 are franchisee owned.

PepsiCo stays committed to providing its consumers with top quality

beverages. Its diverse portfolio of brands include the flagship cola brand -

Pepsi; Diet Pepsi; 7Up; Mirinda; Mountain Dew; Slice fruit drink; Tropicana

brand 100% fruit juices in various flavors; Aquafina packaged drinking water;

Gatorade plus local brands Lehar Evervess Soda, Dukes Lemonade and

Mangola.

PepsiCo is also a dominant player in the snack food segment in India.

PepsiCo's snack food company Frito-Lay is the leader in the branded potato

chip market. It manufactures Lay's Potato Chips; Cheetos extruded snacks,Uncle Chips; traditional namkeen snacks under the Kurkure and Lehar brands;

and Quaker Oats.

PepsiCo is one of the largest MNC exporters in India and its export

business consist of three categories - agri business, commodities and Pepsi

system sales. PepsiCo has made significant investments with the Punjab

Agriculture University to develop a comprehensive agro-technology

Programmed that has helped thousands of farmers across India improve the

yield of their farms and the quality of their agricultural products. PepsiCo hasleveraged its knowledge in contract farming to develop seaweed cultivation in

Tamil Nadu and has partnered with the Government of Punjab to help farmers

of the state through the utilization of developed technology for citrus farming.

As part of its sustainable development initiatives, PepsiCo India has

been a committed leader in the promotion of rain water harvesting, water

conservation recycling and the reduction of effluent discharge. PepsiCo has

also established zero waste centers and PET recycling supply chains and

assisted victims of natural disasters. PepsiCo stays dedicated in its endeavor to

develop community outreach programs by supporting rural water supply

schemes, administering medical camps in villages, providing computers to rural

schools and creating opportunities for women in rural areas through vocational

training as an alternate means of livelihood.

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PepsiCo India has worked closely with the Defense forces in

rehabilitation of Defense Personnel through projects like Mission Vijay-2. Under

this project Pepsi in association with Castrol helped soldiers set booths in rural

area to sell Pepsi and Castrol products there by helping them to not only earn a

decent living but to also add some color to their lives. Through this project

PepsiCo India also tries to give these soldiers distribution rights for its soft

drinks.

It gives PepsiCo India great pleasure in associating with Defense India and

Samvedna for an event to bring cheers and smiles for our Jawaans of BSF

(Border Security Force) at Wagah.

In the next year, 1991 production on Mirinda and 7 Up started. The

production of Slice, Teem and Fountain Pepsi started in 1993 Coca-Cola came

back again in October 1993 and launched in Agra. It joined hands with Parle

Export Pvt. Ltd. to enter India and gradually took over the same company. The

nineties also saw a new foreign entrant called Cadbury Schmeppes, which

rolled out Canada Dry and Crush in Metropolitan cities.

Pepsi entered the cloudy lemon category by launching its Mirinda Lemon

in 1998. In may 1999, a notification, presenting the presentation of food

Adulteration (Fourth Amendment) rules 1999, allowed the use of the blended

artificial sweeteners, as part time and a successful fame potassium in the

formulation of soft drinks, which in what made the entry of diet Pepsi and diet

coke. Coca-Cola also rolled out its popular clear lemon drink sprit in India at

same year, 1999.

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COMPANYS GLOBAL STRATEGY

Set a winner growth goals if you act like number two, you will always be

number two.

Hiring people who love change and thrive on risk taking.

Upset the rules of the market place. .

Always anticipate the response you may provoke.

Execution of a plan often derive success more then more marketing

Encourage Executives to think laterally.

Conjure Up those creative tactics to knack fizz out of its competition.

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BRAND PROFILE

PepsiCo Company provides five brands of Soft drinks. In all brands of

Pepsi one is Soda, Second Mineral water and other are running successfully inthe market. At present time Pepsi provides two new soft drinks. Dew Mountain

and Blue Pepsi and above marketed with reasonably good success. They are

completely defined below-

1. Pepsi

2. Blue Pepsi

3. Pepsi Diet

4. Miranda (Lemon + Mango)

5. Slice

6. 7up

7. Aquafina

8. Dew Mountain

Now here we will discuss about the market shares of each brands of soft

drinks. There market share are as follows-

Soft Drinks Market Share

Pepsi 57%

Mirinda (Orange) 16%Mirinda (Lemon) 2%

Slice 1.5%

Teem Soda Not Available

7UP 1.5%

Aquafina 3%

Blue Pepsi 2%

Dew Mountain 8%

Pepsi Diet 6%

Quantity Details of all brands of Soft drinks are given as below

SOFT DRINKS Quantity

Pepsi 200ml, 300ml, 600ml, 1lt, 2lt.

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Mirinda Orange

Mirinda Lemon

Slice

7up

Teem Soda

Pepsi Diet

Aquafina

Dew mountain

Blue Pepsi

200ml, 300ml, 600ml, 1lt, 2lt

200ml, 300ml, 600ml, 1lt, 2lt

250ml, 500ml

200ml, 300ml, 2lt

300ml, 600ml

330ml, 500ml

1lt

200ml

500ml

The PepsiCo company had provided its 300ml bottle soft drinks(B.S.D.)

in the month of June 95, 200ml launched in the year of 1999 and I lit, 1.5 lit

bottle launched in the year 1996 while 500ml and 2 it launched in 2000, Mineral

water, Aquafina had been launched in the year 2001.

Dew mountain, Blue Pepsi 200ml, 500, ml, has been launched in the year 2003.

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Pepsi's Products

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RESEARCH METHODOLOGY


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Scope of the study:

The research pertains to the study of consumer choice for soft drinks at Jaipurmarket. This study is attempt to analyze the present top brands preferred by

customer for soft drink in Jaipur market, examine the product factors that

influence the purchasing decisions of buyers and to know the relation between

gender & preference for soft drinks & flavors.

Objectives of the study

As every research has some objective/s to achieve or problem/s to solve.

Because every research is conducted in order to achieve some objectives.

Objectives of this research stud y are-

1. To study the brand preference for different kind of soft drinks.

2. To determine the factors that influences the consumer choice of a

particular soft drink.

3. To study the consumption pattern & behavioral aspects of consumes

such as frequency of consumption, quantity of consumption, place of

consumption etc.

4. To study the sales promotion tool/techniques sources of media that

attracts consumers most.

Hypothesis:-

Null Hypothesis: Promotions does not affect the sales.

Null Hypothesis: Factors does not affect sales of soft drinks people drink just to

quench the thirst.

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Data collection

The type of data collected for the research was primary as well as secondary.

Primary data was collected through:

Direct contact with the customers.

Questionnaires filled by the customers.

Secondary data was collected through:

Various journals

Internet survey reports

Field work and Sample

While developing and utilizing a sample for the research purpose, the following

steps were used:

Defining the universe

Developing the sample frame

Selecting a sampling frame

Determining the sample size

Selecting the research instrument

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Universe

The universe or population is the specific group of people is the specific group

of people from conditions, activities, etc. which form the pivotal point of the

project.

For developing and using sample, it becomes the primary duty of researcher to

define the population from which he intends to draw the sample.

The universe of my project is about 130 consumers of Jaipur city, which formed

the pivotal point of my project.

Sampling frame

A sampling frame may be defined as the listing of the general components of

the individual unit that comprise the defined population.

In case of my project, sampling frame is various consumers frame is various

consumers including lower middle class, middle class and rich class.

Sampling procedure

After defining the sampling frame, other important point to be discussed is

which sampling procedure to be adopted.

A simple random sampling technique will be used to understand customers

outlook towards the soft drinks.

Sample size

130 consumers of Jaipur city an attempt will be made to make the sample

representative of the whole population under study.

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Research instrument:

Questionnaires were used to find out Factors influencing consumer choice of

soft drinks in Jaipur city with the help of the questionnaire, filled by 130

consumers, the result was analyzed.

The process was followed to prepare a questionnaire:

1. Specify the information needed.

2. Determined the types of questions to be asked.

3. Deciding the number and sequence of questionnaire.

4. Preparing preliminary draft of questionnaire.

5. Revised and protested the questionnaire.

Limitations

Although the research was conducted in a way to ensure accurate results but

certain errors might have occurred due to some unavoidable reasons. Some of

the limitations of the project are:-

Data collection

1. Non-response by some of the respondents.

2. Since the population is not homogeneous, some biasness might havecreped in.

3. The sample of convenience, thus it is not the true representative of thecomplete.

MEASUREMENT ERROR

There was certain degree of misinterpretation by the respondents about the

points raised in the interview.

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ANALYSIS

&

INTERPRETAYION


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Data Analysis and Interpretation

1. Gender wise profile :

Graph 1.1

Gend er wise Profi

Male

54%

Femal

46%Male

Femal

Interpretation:

As the above graph shows that there were equal male and female respondents,

males were little higher than females by only 4%.

2. Age wise Profile:

10-20years

In %21-30years

In %31-40years

In %More

than 40years

In % Total

Male 12 17% 28 40% 21 30% 9 13% 70

Female 14 23% 20 33% 16 27% 10 17% 60Total 26 20% 48 37% 37 28% 19 15% 130

Graph 2.1

No. of Respondents In%

Males 70 54%

Females 60 46%

Total 130 100%

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Age Wise Profile of Males Responde

17%

40%

30%

13%

10-20 years 21-30 years 31-40 years More then 40 year

Interpretation:

As the above graph clearly depicts that most of males respondents [40%]were youth as fall into the category of 21-30 years.

Graph 2.2

Age Wise Profile of Females Respondents

23%

33%

27%

17%

10-20 years 21-30 years 31-40 years More then 40 years

Interpretation:

As the above graph clearly depicts that most of females respondents

[33%] were also youth as they fall into the category of 21-30 years.

3. Occupation wise Profile:

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Service In % Business In % Professionals In %Other [Students

housewivesetc.]

In %

Male 28 40% 14 20% 9 13.% 19 27%

Female 10 17% 0 0% 8 13.% 42 70%

Total 38 28.% 14 10% 17 13.% 61 47%

Graph 3.1

Occupation Wise Profile of Males

40%

20%

13%

27%

Serv ice Bus iness Professionals Students

Interpretation: As the above graph clearly shows that there were most of males

respondents [40%] were service category

Graph 3.2

Occupation Wise Profile of Females

17%

27%

13%

43%

Serv ice Students Professionals Housewife

Interpretation:

As the above graph clearly shows that there were most of females

respondents [43%] were housewives category

4. Income group wise profile:

Less than In % 10,000- In % 15,000- In % More than In % Total

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Rs. 10,000 15,000 20,000 20,000

Male 37 53% 9 13% 9 13% 15 21% 70

Female 42 70% 4 7% 8 13% 6 10% 60

Total 79 61% 13 10% 17 13% 21 16% 130

Graph 4.1

Income Wise Profile of Males

53%

13%

13%

21%

Less then Rs. 10,000 10,000-15,000

15,000-20,000 More then Rs. 20,000

Interpretation:

As the above graph clearly shows that there were most of males

respondents [53%] were income group of Rs. Less than Rs. 10,000.

Graph 4.2

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Income Wise Profile of Females

70%

7%

13%

10%

Less then Rs. 10,000 10,000-15,00015,000-20,000 More then Rs. 20,000

Interpretation:

As the above graph clearly shows that there were most of femalesrespondents [70%] were income group of Rs. Less than Rs. 10,000.

5. Ranking of different flavors of soft drinks according to

choice of consumers:

Graph 5.1

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Interpretation:

The above graph shows that Mango Flavor is preferred most by the male

customers than next is Cola & Lemon is least preferred by them.

The above graph shows that Orange Flavor is preferred most by the

female customers than next is Mango & Cola is least preferred by them.

6. Brand recall of different soft drink brands:

Brand

RecallCola Pepsi Thums up Fanta Slice Mirinda Limca Fruity Maza

Top of

the mind

recall

70% 60% 60% 65% 60% 40% 45% 55% 60%

Unaided

recall30% 40% 40% 35% 40% 60% 55% 45% 40%

Graph 6.1

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Ranking of Soft Drinks Flavors of Respondents

2

3

1

4

4

1

2

3

0 1 2 3 4

Cola

Orange

Mango

Lemon

Males Females


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Brand Recall of different soft drink brands

70

60 6065

60

4045

55

60

30

40 4035

40

60

5545

40

Coke

Pepsi

Thum

sup

Fanta

Slice

Miri

nda

Limca

Fruity

Maz

a

Persen

Top of the mind recall

Unaided recall

Interpretation:

As the above graph shows that comparatively coke is at the top of the

mind recall by most of customers [70%] and next is Pepsi. In Unaided brand

recall Maza and Fruity.

7.Ranking of factors that influence the consumer choice of soft

drink:

Factors Male Female

Taste 1 1

Price 2 5

Health 3 3

Weather 4 2

Social Gathering 5 4

Packaging 6 6

Ads & offers 7 8

Status 8 7

Graph 7.1

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Factors that influence the consumer

1

2

3

4

5

6

7

8

1

5

3

2

4

6

8

7

0 1 2 3 4 5 6 7 8

Taste

Price

Health

Weather

Social Gathering

Packaging

Ads & offers

Status

Rank

Male Female

Interpretation:

Taste ranked as first factor affecting consumer choice by both male &

female consumers. Price is ranked second by male consumers whereas health

factor is ranked by female consumers which affect their choice of soft drinks.

8. Consumption per week by consumers:

Lessthan 5times

In%6-10times

In%More

than 10times

In% Undecided In% Total

Male 47 67% 12 17% 2 3% 9 13% 70

Female 44 74% 8 13% 0 0% 8 13% 60

total 91 70% 20 15% 2 2% 17 13% 130

Graph 8.1

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Average consumption per week by Males

67%

17%

3%13%

Less than 5 times 6-10 times More than 10 times Undecided

Graph 8.2

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Average consumption per week by Females

74%

13%

0%13%

Less than 5 times 6-10 times More than 10 times Undecided

Interpretation:

From the above graph we can say that most of the consumers [70%] are

not having any regular schedule of consuming soft drinks. Both males [13%] &females [13%] consumer said that it is undecided and only 1.54% consumer

said that they drink more than 10 times in week so it is not definite.

9. Quantity of consumption at once:

200ml. In% 300ml. In% 500ml. In%

More than

500ml. In% TotalMale 23 33% 28 40% 19 27% 0 0% 70

Female 24 40% 24 40% 12 20% 0 0% 60

Total 47 37% 52 40% 31 23% 0 0% 130

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Graph 9.1

Quantity of consumption at once by Males

33%

40%

27%0%

200 ml. 300 ml. 500 ml. More than 500 ml.

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Graph 9.2

Quantity of consumption at once by Females

40%

40%

20%0%

200 ml. 300 ml. 500 ml. More than 500 ml.

Interpretation:

From the graphs we can say that [Both males & females] majority of the

consumers [40%] prefer to drink these soft drinks in the quantity of 300 ml. at

once & than next is 200 ml. with [37%] but there is big difference in consumer

response for the rests of the options.

10. Drinking Pattern:

With group In% Alone In% Total

Male 58 82.86% 12 17.14% 70Female 54 90% 6 10% 60

Total 112 87.69% 18 12.31% 130

Graph 10.1

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82.85%

17.14%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

With group

Alone

Drinking Pattern of Males

Graph 10.2

90%

10%

0% 20% 40% 60% 80% 100%

With group

Alone

Drinrking Pattern of Females

Graph 10.3

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87.69%

12.30%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

With group

Alone

Drinking Pattern of all Respondents

Interpretation:

From the above it is clearly visible that mostly customers [87.69%]

enjoy drinking these soft drinks when they are with group.

11. Area of consumption:

Home In %Outside

locationIn %

Cinema

HallsIn %

Social

Gathering

In

%

B/C

partiesIn %

Male 14 20% 30 43% 12 17% 5 7% 9 13%

Female 20 33% 18 30% 18 30% 4 7% 0 0%

Total 34 26% 48 37% 30 23% 9 7% 9 7%

Graph 11.1

Area of consumption for Males

20%

43%

17%

7%

13%

At home/office At outside locations

At cinema halls At social gatheringAt corporate/business parties

Graph 11.2

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Area of Consumption for Females

33%

30%

30%

7% 0%

At home/office At outside locationsAt cinema halls At social gatheringAt corporate/business parties

Graph 11.3

Area of Consumption

26%

37%

23%

7%7%

At home/office At outside locations

At cinema halls At social gathering

At corporate/business parties

Interpretation:

As the about graphs show that mostly [37%] customers prefer drinking at

outside location & at home/office and cinema halls. This means customer drinkthese drink whenever they go for outing locations.

12. Consumer choice when multiple choices are given without price.

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Soups In %Hot

drinksIn %

SoftDrinks

In %Fruit

juicesIn % Total

Male 14 20% 9 13% 28 40% 19 27% 70

Female 16 27% 10 17% 20 33% 14 23% 60

Total 30 23% 19 15% 48 37% 33 25% 130

Graph 12.1

Consumer choice when multiple choices are given

without price for Males

20%

13%

40%

27%

Soups Hot Drinks Sof t Drinks Fruit Juices

Graph 12.2

Consumer choice when multiple choices are given

without price for Females

27%

17%33%

23%


Graph 12.3

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Consumer choice when multiple choice are given

without price

23%

15%

37%

25%


Interpretation:

From the above graph it is seen that when multiple choice are givento customers without any charge for that i.e. when price factor is excluded, thenmore than 37% customers prefer to drink soft drinks and next is Fruit juices,soups, tea/coffee respectively.

13. Sources of Information:

NewsPaper

In %T.V.ads

In % Hoarding In %By

retailersIn % Total

Male 12 17% 42 60% 12 17% 4 7% 70Female 6 10% 42 70% 10 17% 2 3% 60

Total 18 14% 84 64% 22 17% 6 5% 130

Graph 13.1

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Source of inform ation for M ales

17%

60%

17%6%

Newspapers T.V . ads . Hoardings By retailers

Graph 13.2

Source of information for Females

10%

70%

17%3%

Newspapers T.V. ads. Hoardings By retailers

Graph 13.3

Source of information

14%

64%

17%5%

New spapers T.V . ads . Hoardings By retailers

Interpretation:

From the above graph it is clearly visible that main source of informationto customers regarding soft drinks is T.V. ads according to 64% customers.

14.Influence of Brand Ambassador Consumer choice of Soft drinks.

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Yes In % No In % Total

Male 49 70% 21 30% 70

Female 24 40% 36 60% 60

Total 73 57 130

Graph14.1

70%

30%

40%

60%

0%

20%

40%

60%

80%

100%

Males Females

Influence of Brand Ambassador consumer choice of

Soft drinks

No

Yes

Interpretation:

From the above graph clearly depicts that here is a big difference amongthe response of male & female customer, as in the opinion of most of the male

customers [70%] Brand ambassador influences their choice whereas in theopinion of female majority [60%] said that there is no impact of any BrandAmbassador upon their choice.

15. Preferred Celebrities as Brand Ambassador according toConsumers:

BollywoodCelebrities

In %Sports

CelebritiesIn % Both In %

Othercelebrities

In%

Total

Male 30 43% 12 17% 23 33% 5 7% 70

Female 16 27% 28 46% 12 20% 4 7% 60Total 46 35% 40 31% 35 27% 9 7% 130

Graph15.1

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Preferred Celebrities as Brand Ambassador

according to Males

43%

17%

33%

7%

Bollywood Sports Both Other

Graph 15.2


according to Females

27%

46%

20%

7%

Bollywood Sports Both Other

Graph15.3

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35%

31%

27%

7%

Bollyw ood Sports Both Other

Interpretation:

As the graph depicts that highest 35% people said that bollywoodcelebrities should be the brand ambassador of soft drinks and than 27% werewith both but here is big difference among the choice of male & femalecustomers.

16. Most preferred sales promotion tools/techniques:

Buy 2 get1 free

Scratch/Magic

cards

Pricediscounts

ExtraQuantity

offer

Somethingfree

Total

Male 12 7 30 14 7 70

Female 14 8 22 10 6 60

Total 26 15 52 24 13 130

Graph 16.1

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Most preferred sales promotion tools/techniques by

Males

17%

10%

43%

20%

10%

Buy 2 get 1 f ree Scratch/Magic card Price Discount

Extra quantity offer Something free

Graph 16.2

Most preferred sales promotion tools/techniques byFemales

23%

13%

37%

17%

10%

Buy 2 get 1 f ree Scratch/Magic card Price Discount

Extra quantity offer Something free

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Graph 16.3

Interpretation:

As per the analysis of above graphs that of the customers [40%] preferprice discounts then there is buy 2 get 1 free offer.

17. Brand Loyalty among Consumers of Soft drinks:

Brand loyal In % Not Brandloyal In % Total

Male 28 40% 42 60% 70

Female 18 30% 42 70% 60

Total 46 35% 84 65% 130

Graph 17.1

48

Mos t prefe rre d s ales prom otion tools/techniq

20%

12%

40%

18%

10%

Buy 2 get 1 f ree Scratch/Magic card Pr ice Discount

Extra quantity off er Something free


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40%

60%

30%

70%

0%

20%

40%

60%

80%

100%

Males Females

Brand Loyalty among Consumers of Soft drinks

No

Yes

Interpretation:

As the above graphs show there are 35% customers who brand loyal butmales are having much loyalty in comparison to females customers.

H1=we found that our null hypothesis rejected as majority of people are buying just

because of promotions and offers.

H1=we found that our second null hypothesis also rejected we found that people drinkdue to several factors like their choices or their favorite star is having the same not to

quench thirst.

Fact Findings

1. No. of Respondents:

There were total 130 respondents out of which 70 were males &

60 were females.

2. Age group:

20% respondents fall into the age group of 10-20 years.



15% respondents fall into the age group of more than 40years.

3. Occupation of respondents:

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28% of the respondents were Service.

10% of the respondents were Business

13% of the respondents were Professionals

47% of the respondents were Students & housewives etc.

4. Income group of respondents:

61% of the respondents fall into the income group of less than

Rs.10, 000.

10% of the respondents fall into the income group of 10,000-

15,000.

13% of the respondents fall into the income group of 15,000-

20,000.

16% of the respondents fall into the income group of more than

Rs.20, 000.

5. Ranking of factors that influence the consumer choice of soft drink:

Taste ranked as first factor affecting consumer choice by both

male & female consumers.

Price is ranked second by male consumers whereas health factor

is ranked by female consumers which affect their choice of soft

drinks.

6. Ranking of different flavors of soft drinks according to choice of

consumers: Mango Flavor is preferred most by the male customers than next

is Cola & Lemon is least preferred by them.

Orange Flavor is preferred most by the female customers than

next is Mango & Cola is least preferred by them.

7. Brand recall of different soft drink brands:

Comparatively coke is at the top of the mind recall by most of

customers [70%] and next is Pepsi. In Unaided brand recall

Maaza and Fruity.

8. Consumption per week by consumers:

70% of the consumers said that their consumption per week of

soft drink is less than 5 times.

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soft drink is 6-10 times.

2% of the consumers said that their consumption per week of soft

drink is more than 10 times.


soft drink is Undecided.

9. Quantity of consumption at once:

37% of the consumers like to drink 200 ml. of soft drinks at once.



Zero of the consumers like to drink more than 500 ml. of soft

drinks at once.

10.Drinking Pattern:

87.69% of the consumers enjoy drinking soft drinks in group.

12.31% of the consumers enjoy drinking soft drinks alone.

11.Area of consumption:

26% mostly consume these drinks at home/offices.

37% mostly consume these drinks at outside location.

23% mostly consume these drinks at cinema halls.

7% mostly consume these drinks at social gatherings.

7% mostly consume these drinks at business/corporate parties.

12.Consumer choice when multiple choices are given without price.

23% customers prefer to drink soups when price factor is

excluded.

15% customers prefer to drink hot drinks when price factor is

excluded.

37% customers prefer to drink soft drinks when price factor is

excluded.

25% customers prefer to drink Fruit juices when price factor isexcluded.

13.Source of information:

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14% of the consumers said that they get information regarding

different brands of soft drinks through News paper Ads.


different brands of soft drinks through T.V. Ads.


different brands of soft drinks through hoardings.


different brands of soft drinks through by retailers.

14.Influence of Brand Ambassador Consumer choice of Soft drinks.

70% of males consumers said that there choice is influenced by

brand ambassadors.

Whereas 60% of the females consumers said that there choice is

not influenced by any brand ambassadors.

15.Most preferred sales promotion tools/techniques:

20% of the consumers like Buy 2 get 1 free.

12% of the consumers like Scratch/ Magic cards.

40% of the consumer like Price discounts.

18% of the consumer like Extra Quantity offer.

10% of the consumers like something free.

16.Brand Loyalty among Consumers of Soft drinks:

40% male consumers were brand loyal and: Only 30% female consumers were brand loyal for soft drink.

Conclusion

Through this research study we conclude that

There many flavors but Mango flavor is liked most by the

consumer. Cola & mango are also popular among male & femaleconsumer respectively.

Generally people are not having any regular timing or drinking soft

drink but we can assume that on an average every customer drink

these drinks less than 5 times in a week.

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Generally people prefer to drink 300 ml. quantity of soft drink at

once.

Most of consumer s drinks such soft drinks in group.

Generally people drink these drinks at outside locations whenever

they go for outing & cinema halls.

If price factor is not taken into consideration & multiple choices are

given to consumer then they prefer soft drink most.

The most popular source of information regarding soft drink

brands is T.V.

Brand ambassador has the influence on choice of most of the

male consumer. But there is comparatively less influence on

female consumer.

According to most of the male consumers bollywood celebrities

should be the brand ambassador where as according to the most

of female consumers sports celebrities should be the brandambassador for endorsing soft drinks.

The three most preferred sales promotion techniques are price

discount, but to get one free & something free with product

respectively.

Half of the male consumers are brand loyal whereas female

consumers are comparatively less who the brand loyal is.

The most influencing factor is price. According male consumers

price is also having more influence but according to females

health factor is much more influencing than price as they may bevery health conscious.

Suggestions

Promotion of mango flavor :

Companies should focus more on the promotion of mango flavors of soft

drinks because comparatively to cola drinks mango flavored drinks are

very less advertised & promoted by soft drink brands where as according

to our result cola flavor is more preferred by most of the consumers.

Maintaining taste & keep launching innovative flavors :

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Companies should maintain the taste of its flavored drinks should keep

improving the taste & quality of its drinks, companies may also launched

some innovative mixed flavors of drinks where two flavors in one drink

can be provide like orange-pineapple etc. it will give a different taste of

customers.

Reduction in price :

Price is also major factor of consumers choice of soft drinks. So

companies should try to decrease its price by decreasing its extravagant

expenditure in advertisement to trap the market of those customers

whose choice is very much affected with the price of soft drinks.

Diet drinks :

Health is also a major factor influencing consumer choices of many

consumers. So fruit juice are giving tough competition to soft drinks.

Companies should advertised its product in a manner in which its

reflects that consuming their drinks will not harm any body. As coke &

Pepsi have already lunched its drinks for the segment which is very

much health conscious i.e. Diet Coke & Diet Pepsi respectively which are

fat free. But companies should launch diet drinks in other flavors also.

Especially in mango flavor as it is preferred by most of the consumers.

Companies should try to win the trust of consumers that these drinks are

not having pesticides contents more than limits by sponsoring some

rational appeal based advertisement.

Quantity discounts :

Companies should try to increased the sales of its drinks for the purpose

of increasing its offering in parties. As in parties consumers mostly prefer

soft drinks even after having multiple choices, companies should provide

quantity discount as in parties more quantity is purchased at once.

Humorous, creative & sensible ads :

As companies are already promoting their brands through T.V. ads butcompanies should take very much care of the target segment & should

ensure that no ad should hurt the person directly or indirectly. Now a

days ads with humorous appeals are like by viewers very much so there

should be humorous creative ads on T.V.

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Selection of brand ambassador :

Companies should get the endorsement from both Bollywood & Sports

celebrities as most as the people like those ads where both of these

celebrities endorse the product together.

Sales promotion :

For sales promotion companies should give the price discount as it is

preferred by most of the customers. In of seasons companies already

provide but if in the summer companies should price discount then it can

be boost up there sales both in Rupees & volume. Companies should

bye to get one free schemes also some complementary product also

may be given with big bottle i.e. like two ltr. Bottle of soft drinks

companies may give wafers & snakes etc.

Brand loyalty :

As there were not more customers who are brand loyal & easily switch

on to other brands. So companies should strengthen its distribution

network & ensure the proper supply & arability of there drinks to prevent

people switching on to other brands, companies should also organized

activities and should do programs, seminars for social & moral causes to

build its brand image & brand loyalty amongst the customers.

SWOT ANALYSIS OF ORGANISATION

Strengths:

Those are large Organization

Capturing a Broad Market

It is Multinational Company

Proper Utilization of Man Power

Product are highly demanded in Market

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Weaknesses:

Service is not up to the mark

Unable to penetrate a large no. Of rural areas

Unable to break up the monopoly of competition Reducing the brand loyalty of the consumer

Opportunities:

Large number of consumer

Large Market segment

By removing weaknesses company could be ultimate leader

Threats:

Existence of Local Soft Drink

Boycott of soft drinks due to Swedishi Movement

Different offers and Schemes provided by the other soft drink companies

Annexure

Questionnaire for the study of factors affecting consumer choice of soft-drinks

Gender: [ ] Male [ ] Female

Age group: [ ] 10-20 years [ ] 21-30 years[ ] 31-40 years [ ] More than 40 years

Occupation: [ ] Service [ ] Business

[ ] Professional [ ] Student[ ] Housewife [ ] Others________

Income group (p.m.) [ ] Less than Rs.10,000 [ ] 10,000-15,000

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[ ] 15,000-20,000 [ ] More than Rs. 20,000

1. Please rank the following flavors of soft drinks that you like most.

Cola_______ Orange________

Mango_____ Lemon________

2. Please name the brands of soft drinks, which you remember.

_________________________________________________

3. Please name the following that influence your decision when you purchase a soft

drink? (On 1-8 scale, where 1 is highest & 8 is lowest rank)Taste________ After effects/Health_________

Price________ Occasion/Social Gathering_______

Packaging______ Advertisement & offers_________

Weather/Heat_____ Status__________

4. How many times you drink these beverages in a week?

[ ] Less than 5 times [ ] 6-10 times[ ] more than 10 times [ ] Undecided

5. How much quantity of these do beverages do you consume at once?[ ] 200 ml. [ ] 300 ml

[ ] 500 ml. [ ] More than 500 ml..

6. You enjoy drinking these drinks?

[ ] With group [ ] Alone

7. Mostly where do you consume such drinks?[ ] At home/office [ ] At outside locations

[ ] At cinema halls [ ] At social gathering

[ ] At corporate/business parties [ ] others_____

8. In a party, if following drinks are offered to you then whom drink you would like

to take?

[ ] Soups [ ] Hot drinks/coffee/Tea[ ] Cold/Soft drinks [ ] Fruit juices

9. How do you get information regarding the different brand & flavors of thesebeverages available in the market?

[ ] Newspapers ads. [ ] T.V. ads.

[ ] Hoardings & Banners [ ] By retailers

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[ ] Other________

10. Dose any brand ambassador of these drinks influence your choice?

[ ] Yes [ ] No

11. According to you, who should be the brand ambassador for soft drink?[ ] Bollywood celebrities [ ] Sports celebrities

[ ] Both [ ] Other celebrities_______

12. Which of the following sales promotion tools/techniques do you like most for soft

drink?

[ ] Buy two get 1 free [ ] Scratch/Magic card[ ] Price discount [ ] Extra quantity offer

[ ] Something free [ ] Others__________

13. Do you easily switch on to other brand when you do not get your favorite &desired brand/s for these drinks?

[ ] Yes [ ] No

Thanks very much for your kind support & cooperation.

With Best Regards

Ankit Pundir

58BIBLIOGRAPHY


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Bibliography

Websites:

I. www.google.co.in

II. www.pepsico.com

III. www.cocacola.com

59
http://www.google.co.in/http://www.pepsico.com/http://www.cocacola.com/http://www.google.co.in/http://www.pepsico.com/http://www.cocacola.com/


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Books:

I. C.R. Kothari

Documents

Ankit pepsi