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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
8
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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RESEARCH METHODOLOGY
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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RESEARCH METHODOLOGY
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
31
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%
Soups Hot Drinks Sof t Drinks Fruit Juices
Graph 12.3
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Consumer choice when multiple choice are given
without price
23%
15%
37%
25%
Soups Hot Drinks Sof t Drinks Fruit Juices
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
Preferred Celebrities as Brand Ambassador
according to Females
27%
46%
20%
7%
Bollywood Sports Both Other
Graph15.3
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Preferred Celebrities as Brand Ambassador
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.
37% respondents fall into the age group of 21-30 years.
28% respondents fall into the age group of 31-40 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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15% of the consumers said that their consumption per week of
soft drink is 6-10 times.
2% of the consumers said that their consumption per week of soft
drink is more than 10 times.
13% of the consumers said that their consumption per week of
soft drink is Undecided.
9. Quantity of consumption at once:
37% of the consumers like to drink 200 ml. of soft drinks at once.
40% of the consumers like to drink 300 ml. of soft drinks at once.
23% of the consumers like to drink 500 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.
64% of the consumers said that they get information regarding
different brands of soft drinks through T.V. Ads.
17% of the consumers said that they get information regarding
different brands of soft drinks through hoardings.
5% of the consumers said that they get information regarding
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
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Books:
I. C.R. Kothari