A COMPARITIVE STUDY ON CONSUMER PREFERENCE ON SOFT DRINKS & CONSUMER AWARENESS REGARDING THE ADVERSE EFFECT OF SOFT DRINKS

ON HEALTH
REPORT

Submitted by:

AZHAR K P

08308007 08308023 08308029 08308037

MOHAMMED FAHD MOHAMMED SADATH NIMISHA DEVANANDAN

Under the guidance of Dr. MADHU

MASTER OF BUSINESS ADMINISTRATION

DEPARTMENT OF MANAGEMENT SCIENCE MES COLLEGE OF ENGINEERING, KUTTIPURAM, MALAPPURAM

(Approved by AICTE, Affiliated to Calicut University, ISO 9001-2000 certified)

2008-2010

ACKNOWLEDGEMENT A word of thanks. Before we get into the thick of the things we would like to add a few heartful words for the people who gave unending support right from the stage the idea of the research was conceived. We express our deep sense of gratitude & sincere thanks to those who have helped us in developing this research work. It is impossible to put out or classify the assistance; it is the feeling that matters, & not the value. First of all we would like to express our sincere gratitude to our beloved Prof. Madhu for giving us an opportunity to do this research & extent his kind co-operation. Deepest appreciation & thanks go to our respective families for their patience & understanding, friends & classmates for their insights comments throughout the research. Above all it is the grace & blessings of God Almighty, which made this, Endeavour a success.

Azhar K P Mohammed Fahd Mohammed Sadath Nimisha Devanandan

EXECUTIVE SUMMARY
Soft Drinks were common preference among all the individuals, irrespective of their age groups as it had great brand value and great advertisement. Market Research is based on some underlying parameters like: Changing consumption pattern Changing income levels Advertisements Taste Status consciousness Varying lifestyle

The study starts with determining the major players in the soft drinks, their overall consumption pattern among the people and ends up with the conclusion as per the state of mind of the average rational human being. Consumer preferences are changing towards healthier food, and thus such a trend will carry on for some time to come. In the soft drinks market of late, most recent new products launched have been focused on the health benefits of the soft drinks, like pomegranate juices, calcium-fortified bottled water and a series of reduced-sugar alternatives, with such features not previously so readily available to or heavily promoted at the target audience.

TABLE OF CONTENTS SERIAL NO. 1) 1.1) 1.2) 1.3) 1.4) 01 Major 04 Study 08 Recent 09 2) 2.1) 2.2) 2.3) 2.4) 2.5) 2.6) 2.7) 2.8) 3) 19 16 Objectives of the study Scope of the study 16 Research Design Sampling Technique used 18 Selection of Sample Size 18 Sources of Data collection 18 Statistical Tools Used 18 17 16 RESEARCH METHODOLOGY Purpose of the study issues of growth of soft drink market players in soft drinks segment TITLE INTRODUCTION Industrial profile PAGE NO.

DATA ANALYSIS AND FINDINGS

4) 40 5) 41 6) 42 7) ANNEXURE 7.1) Questionnaire 8) 44 LIMITATION OF

SUGGESTIONS

THE

STUDY

CONCLUSION

43 BIBLIOGRAPHY

INTRODUCTION

INDUSTRIAL PROFILE
The soft-drink industry comprises companies that manufacture nonalcoholic beverages and carbonated mineral waters or concentrates and syrups for the manufacture of carbonated beverages. Naturally occurring bubbling or sparkling mineral waters have been popular for thousands of years: the ancient Greeks believed that such waters had medicinal properties and bathed in them regularly; the Romans established resorts around mineral springs throughout Europe. In the 1500s the village of Spa in Belgium became famous for its waters, which by the early 1600s were sold, in bottles, as far away as London, Eng. Development of the first man-made sparkling or carbonated water is credited to Joseph Priestley, the British scientist who discovered oxygen. In 1772 he invented a method of "pushing" carbon dioxide into water by dissolving it under pressure, thus creating fairly long-lasting bubbles. The technique led to development of the soft-drink industry. By the beginning of the 19th century, carbonated water was being made commercially in France and North America; shortly thereafter, flavours (normally fruit concentrates) were added to enliven the taste. In the 1820s, small carbonated bottling operations were established in Canada, producing carbonated drinks in refillable bottles which were merchandised as

medicinal elixirs or tonics. Most soft drinks are still carbonated to give drinks a "tangy bite" and to stimulate the tongue. Furthermore, because scent is an important part of taste, the flavours carried as vapours in the bubbles enhance taste. The principle of "pushing" carbon dioxide is still used, but now the water is first purified in a process known as "polishing." Cooled carbon dioxide is then injected at pressures of 275550 kilopascals. Some of the early drinks bottled in Canada were called Birch Beer, Ginger Beer, Sarsaparilla, Sour Lemon, None-Such Soda Water and Cream Soda. The first carbonated beverage or "pop" bottles were sealed with corks held tightly in place with a wire binding. Because they had to be stored neck down so that the cork would not dry and allow the carbonation to leak away, they were manufactured with rounded bottoms. By the mid1800s, soft drinks sold in Canada were packaged in 8-ounce (227.2 ml) round-bottom bottles for about 25 cents a dozen, except ginger beer, which was sold in draught form from wooden kegs. Wired cork closures were used until about 1884 with Codd's Patented Globe Stoppers (25 types in all). Such closures were replaced by the Hutcheson Spring Stopper. The crown cap was introduced around 1905 and improved versions are still widely used, although they are gradually being replaced, especially on larger containers, with reclosable screw caps. Other packaging innovations since the mid-1960s include canned carbonated beverages, nonreturnable glass bottles and containers made from rigid plastics. However, an effort is being made, often through provincial legislation, to increase the use of returnable glass containers. In the industry's early years the number of carbonated-beverage plants increased steadily, most serving small regional markets. In 1929 the industry was made up of 345 production plants and the value of shipments reached $12.3 million. By 1960 the number of plants had increased to 502 and the value of sales to $172.7 million. Subsequently, consolidation began, prompted by improved production, packaging and distribution facilities. By 1973, 337 plants were in production and the value of shipments was $484 million. In 1985, with sales of about $1.8 billion, the industry had 187 plants in production: Newfoundland had 3; PEI, 1; Nova Scotia, 7; New Brunswick, 8; Qubec, 66; Ontario, 58; Manitoba, 7; Saskatchewan, 10; Alberta, 13; and BC, 14. Production volume has also increased dramatically: in 1939, soft-drink bottlers produced about 162 million litres of carbonated

beverages; by 1967, production passed 758 million litres; in 1986, shipments were estimated at over 2.1 billion litres; and in 1998 that figure rose to 3.5 billion litres. The industry is regulated by both federal and provincial agencies, 3 of the most important being CONSUMER AND CORPORATE AFFAIRS (responsible for the Consumer Packaging and Labelling Act), HEALTH CANADA (which administers the Food and Drugs Act) and Environment Canada (which focuses on environmental matters). The industry is represented by the Canadian Soft Drink Association in Toronto and by several provincial associations. The introduction of diet carbonated beverages has changed the industry's profile. Several years ago, in response to increasing consumer diet consciousness, the industry introduced the first successful sugar-free diet drinks using the artificial sweetener cyclamate. But questions were raised about the safety of this additive and, based on existing scientific data, Health Canada banned its use in Canadian commercial FOODS AND BEVERAGES. This decision, estimated to have cost the industry more than $15 million, was a setback to dietdrink development. The industry turned to saccharin, but this too was eventually banned. Now, a new sugar-free additive, aspartame, has been approved for use in diet soft drinks, and the cyclamate/saccharin situation is not expected to recur because aspartame consists of amino acids, which occur naturally. Aspartame-sweetened diet drinks have had a dramatic effect on the Canadian carbonated-beverage industry. Just before the saccharin ban in 1977, diet drinks accounted for about 10% of the soft-drink market; following the ban the diet share dropped to about 2%, consisting of beverages partially sweetened with small amounts of sugar. In 1982, the first full year that aspartame was used in Canada, diet drinks increased by 15.2% of total soft-drink sales, while the total soft-drink industry grew 8%. In 1987 total soft-drink sales increased 5.3% over 1986, while diet soft-drink sales increased by 10.7%. This single development has encouraged strong growth in the industry.

MAJOR PLAYERS IN SOFT DRINKS SEGMENT

COCA COLA

thanda matlab coca cola!!!

Coca cola has truly remarkable heritage. From a humble beginning in 1886 it has now become the flagship brand of largest manufacturer, distributor of non alcoholic beverages in the world. In India, coca cola was the leading soft drink till 1977 when govt. policies necessitated its departure. Coca cola has made its return to the country in 1993.and made significant investment to ensure that the beverage is available to more and more people in remote as well as inaccessible parts of the world.

Coca cola returned to India in 1993 and over the past ten years has captured the imagination of the nation, building strong association with cricket, the thriving cinema industry, music etc. coca cola has been very strongly associated with cricket, sponsoring the world cup in 1996. In 2002, coca cola launched the campaign,Thanda Matlab coca cola. in 2003,coke was available for just rs,5 crores in the country.

FANTA GHOONTH BHAR SHARARAT KAR LEY!!!

Fanta entered the Indian market in year 1996 under the coca cola brand .over the years, Fanta has occupied a strong market place and is identified as the fun catalyst. Fanta stands for its vibrant color, tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment.

LIMCA LIME AND LEMONI!!!

Drink that can cast a tangy refreshing spell on anyone, anywhere. Born in 1971, Limca has been the original thirst choice, of millions of consumers for over three decades. The brand has been displaying healthy volume growing year on year and limca continues to be leading flavoring soft drinks in the country. Dive into the zingy refreshment of limca and walk away a new person.

THUMS UP TASTE THE THUNDER!!!

Strong cola taste, exciting personality. Thums up is a leading carbonated soft drink and most trusted brand in India. Originally introduced in 1977, thums up was acquired by the coca cola company in 1993. Thums up, is, known for strong, fizzy taste and its confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the man from the boys.

SPRITE SPIRITE BHUJAYE PYAAS BAKI SAB BAKWAAS!!!

World wide sprite ranked as no.4 soft drink and is sold in more than 190 countries In India, sprite was launched in year 1999 and today it has grown to be one of the fastest growing soft drinks, leading clear lime category. Today sprite is perceived as a youth icon. With strong appeal to youth sprite has stood for a straight forward and honest attitude. Its clear crisp hingtaste encourages todays youth to trust their instincts, influence them to be true who they are and to obey their thirst.

MAAZA YAARI DOSTI TAAZA MAAZA!!!

Maaza was launched in 1976. In 1993, maaza was acquired by coca cola India. Maaza currently dominates the fruit drink category. Over the years, maaza has become synonymous with mango. Taaza Mango, Maaza mango, Botal mei aam, maaza hai naam.consumers regard maaza as wholesome, natural, fun loving drink real experience of fruit. The campaign builds on the existing equity of the brand and delivers a relevant emotional benefit to the moms rightly captured in tagline, yaari dosti, and taaza maaza.

PEPSI YEH DIL MAANGE MORE!!!

Pepsi cola is a carbonated beverage that is produced and manufactured by Pepsi co. It is sold in stores, restaurants and from vending machines. The drink was first made in the 1890s in North Carolina. The brand was trademarked on June 16, 1903.There have been many Pepsi variants produced over the years. Diet Pepsi Crystal Pepsi Pepsi twist Pepsi max Pepsi samba Pepsi blue Pepsi gold Pepsi holiday spice Pepsi jazz Pepsi x(available in Finland & brazil) Pepsi next(available in Japan & south Korea)

STUDY OF GROWTH OF SOFT DRINK MARKET

SOFT DRINKS
Carbonated drinks are dominated by artificial flavors based on cola, orange and lime with Pepsi and coca-cola dominating the market. The entire part of the drink is based on its artificial flavors and sweetening agents as no natural juice is used.

MARKET
Cola products account for nearly 61-62% of the total soft drinks market. Two global majors Pepsi and coke dominate the soft drink market. NCAER survey says 91% of soft drink in the country is in the lower, lower middle and upper middle class people. The market is worth around Rs.5000 crores with growth rate of around 10-15%. The annual per capita consumption in India is only about 6 bottles vis- a- Vis 340 bottles in the U.S. The production as soft drinks has increased from 5670 million bottles in 1998-99 to 6230 million bottles in 1999-2000 industry source. Growth market this year is expected to be 10-15% in value terms and 20-22% in volume terms. However, the market for carbonated drinks is stagnating and not growing as expected.

RECENT ISSUES
1. China rejects Coke bid to take-over major juice maker
China has rejected Coca-Cola's $2.5 billion bid to buy a major Chinese juice maker. The purchase of Huiyuan Juice Group Ltd would have been the biggest foreign acquisition of a Chinese company to date. The proposed purchase was rejected on anti-monopoly grounds, the Chinese commerce ministry announced on its website. Coca-Cola's bid in September prompted an outcry by nationalists who urged the government to bar foreigners from acquiring one of China's most successful homegrown brands. Rival juice producers warned that the acquisition would give Coca-Cola too dominant a position in China's beverage market. A Coca-Cola spokesman in Hong Kong learned of the rejection of the sale had no immediate comment. Huiyuan's founders and major shareholders already had endorsed the sale. If Coke were to take over Huiyuan, it will dominate the soft drinks market in China, which not only hurts consumers, but also other sector participants. Huiyuan controls more than a tenth of the Chinese fruit and vegetable juice market that grew 15% last year to $2 billion. Coca-Cola has a 9.7% share and dominates in diluted juices.

2. Pepsi's Slice kicks off the new season with 'Aamsutra'

PepsiCo's popular mango juice drink brand- Slice kicks off the 2009 season with it's new 'Aamsutra' concept. According to Homi Battiwalla, business head, juice & juice drinks, PepsiCo India, Slice had seen powerful consumer momentum post the re-launch of 2008. The new winning formulation has been appreciated by consumers. Aamsutra has driven strong disruption in the juice and juice drink category. All of this has made Slice the fastest growing mango drink brand in the country. "South India is the lead market for mango drinks in the country. Andhra Pradesh is the biggest mango market and also the fastest growing market for Slice and mango drinks in the country. Tamil Nadu is amongst the top three states and Slice is the market-leader in Tamil

Nadu,"

he

added

Pepsi has now opted for a new brand ambassador, Katrina Kaif. The creative thought behind the new communication was to further enhance the Slice experience into dimensions of pleasure, sensuality and indulgence. Last year's commercial was about enumerating the principles of 'Aamsutra' or the art of experiencing pure mango pleasure with the new Slice. This year, the commercial portrays the next level to bring alive the mango indulgence, stated Hari Krishnan, Vice President, JWT. The company has now opted for a 360 multimedia campaigns involving digital, print, radio, impact outdoors and sampling in core markets.

3. Parle Agro launches lemon flavoured drink "LMN"

Parle Agro, one of the leading food & beverage companies in India, has launched a new fruit-based lemon drink LMN in the non-carbonated segment. The new brand is a natural lemon juice drink and the only brand in India with a taste closest to home made, fresh lime water (Nimbu pani). According to the company, LMN will offer consumers a healthy, refreshing drink with the goodness of vitamin C. Every summer, the Indian beverage market has seen cola majors battle it out. This summer, the launch of LMN will see the cola wars taking a back seat and the battle spilling over to the non-cola segment, to be more precise in the nimbu paani category. PepsiCo India last week launched a nimbu pani drink, Nimbooz, under the 7Up brand. On the occasion of LMN's launch, Nadia Chauhan, joint managing director and CMO, Parle Agro, said, "Nimbu pani has traditionally been India's most commonly consumed cold beverage. In fact the idea of a branded lemon drink is so simple that you would wonder why nobody thought of it earlier. The challenge for us was packaging a natural product while retaining its fresh, original taste throughout its shelf life."

LMN will be available in 110 ml Tetra, 200 ml Tetra and 500 ml PET packs priced at Rs 5, Rs 10 and Rs 23 respectively. The company aims to touch a turnover of Rs 3000-3500 crore by 2011.

The company will target both (youth and adult) segments of consumers to turn them into branded consumers of nimbu pani. Besides this LMN will also target an emerging segment of consumers who are looking for a healthy and refreshing beverage in the country. "For the last 20 years, Parle Agro has been the market leader in fruit based beverages, we have 10 constantly worked keeping in mind Indian preferences while formulating products that cater to the Indian palate. It is without any doubt that only an Indian company can understand what real nimbu pani tastes like and what the Indian consumer wants in a packaged offering," Chauhan added. Further, the company claims that packaged nimbu pani will have tremendous growth potential, higher than other packaged drinks mainly because of a major shift in consumer behavior. Today, the beverage consumer is looking for hygiene, convenience, refreshing taste, affordability and year-round availability. The name LMN is derived from the SMS version of the word lemon. Parle Agro also owns other fruit drink brands like Frooti, Appy Fizz and packaged drinking water, Bailey.

4. PepsiCo launches 'Nimbooz,' packaged lemon juice with no fizz and artificial flavours
PepsiCo India has launched its packaged nimbu paani, Nimbooz, under its 7Up brand. The home-made nimbu paani or lime juice has been specially created to suit Indian tastes. The lemon juice, no fizz and artificial flavours, is available in trendy, convenient packs. The drink offers great value to consumers in three packaging formats of 200 ml returnable glass bottles (RGB), 350 ml PET and 200 ml Tetra attractively priced at Rs 10, Rs 15 and Rs 10, respectively. According to Ms Punita Lal, Executive Director- Marketing, PepsiCo India, Nimbooz, is specially developed to suit Indian tastes and preferences. "Nimbooz is an affordable offering for consumers on the go because of its ready-to-drink format that is both convenient and hygienic. The proposition of the Indian refresher perfectly captures the mass appeal of this product and will certainly drive consumer connect, stated Ms Alpana Titus, Executive VP-Flavours, PepsiCo India.

11

PepsiCo has drawn up an intensive consumer activation campaign to market Nimbooz. The 360 degree marketing communication plan will revolve around building awareness through multi-city launches and road shows, comprehensive 3D activation, leveraging Out-of-Home (OOH) media, radio, press and outdoors. Aggressive trial generation and sampling initiatives will also be taken forward across major cities of the country. A special 'Nimbooz Highway Gadi' has been created that will visit the four major highways connecting Delhi to Jaipur, Dehradun, Agra to drive trails and consumer education.

5. Coke launches fruit-flavoured Fanta Apple nationally

After successfully introducing it in southern markets last year, Coca-Cola India has launched its fruit-flavoured soft drink 'Fanta Apple' nationally. The product is available in 200 ml and 300 ml returnable glass bottles and also in 500 ml PET pack priced at Rs 8, Rs 10 and Rs 22 respectively. During the Fanta Apple launch in October 2008, Venkatesh Kini, marketing vice-president, Coca-Cola India, said that the company had planned to reach about 3.5 lakh customers with sample apple flavoured drink to extend its market leadership in the fruit flavoured segment in Andhra Pradesh and Tamil Nadu.

"As per consumer research, we have found that after orange, apple is the most preferred fruit in the country and Fanta Apple has been developed specially for the Indian palate," Kini said on Monday. According to experts, the nationwide launch of Fanta Apple is a part of the company's $250 million business plan for the country. Fanta Apple is the second flavour after Fanta Orange under "Fanta" brand of the company. "We have had an excellent response down south with a reused value to the drink and with the national launch of Fanta Apple, we are stepping stones to extend Coca Cola India's market leadership in the fruit-flavoured sparkling drink segment," Kini added. The company has also announced Bollywood actress Genelia D'Souza as the new brand ambassador of the Fanta brand. According to reports, the current expected Indian soft drink market is about Rs 6,000 crore, in which the company shares about 50% market with its various brands like Coke, 7 Up, Fanta, Sprite and Thums Up.

12 HEALTH ISSUES CAUSED BY SOFT DRINKS 1) CERTAIN SOFT DRINKS AND CANCER MAY BE RELATED Francisco Contraries, M.D., of the Contraries Cancer Clinic in Kiajuana, Mexico said, "Cancer is like a plant cell; it can't live in an oxygen-rich environment. cola drinks make our bodies poor in oxygen. cancer is the second cause of death in America. The average American is consuming 800 Or more soft drinks annually. Be more responsible for your own life; doctors have no responsibility for another's health." 2) SOFT DRINKS OFFEND THE KIDNEYS A three year study of over 1,000 men with a history of kidney stones showed: "There was a clear-cut difference in the group's experiences, with much less renal colic in the men who had avoided soft drinks. Of those who continued to use soft drinks, there was also a big difference in outcome depending upon the nature of the soft drink consumed. Soft drinks acidified with phosphoric acid were the worst offenders. Colas of all kinds, of course, are well known for their high phosphoric acid content." 3) COLA DRINKS PROVIDE ZERO NUTRIENTS As pointed out by Beatrice Hunter in her book, CONSUMER BEWARE (published in 1971), "Nutritionally, soft drinks are low in value. Their food energy comes solely from refined sugar. Every element of nutritional importance, except calories, is zero. Soft drinks have much in common with hard liquor, claimed the co-discoverer of insulin, Dr. Charles Best. Cirrhosis of the liver has been found among teenagers who drink large quantities of soft drinks, as well as among chronic alcoholics." Can we live without a functioning liver? No. And do doctors have a cure for cirrhosis of the liver? Not really! 4) CAFFEINE IS ADDICTIVE; COLAS PROVIDE IT Soft drinks, including the cola and pepper-type drinks that have caffeine in them, are the number one beverage of Americans today, with coffee second. Caffeine is a drug and it acts as a stimulant to the central nervous system. "In the amounts presently being consumed, it can cause insomnia, nervousness, irritability, anxiety and disturbances in the heart rate and

13

rhythm. Cola and pepper-type drinks account for 80-90 percent of the caffeine added to foods today. Its long term effects on people are not clearly known." 5) BIRTH DEFECTS AREA POSSIBILITY Here is advice on caffeine from the FDA. "In making the public announcement in September of caffeine's possible dangers to unborn children, FDA commissioner Dr. Jere E. Goyan urged prudence by pregnant women in the use of caffeine products. Goyan's words to mothers-to-be: "So while further evidence is being gathered on the possible relationship between caffeine and birth defects, a prudent and protective mother-to-be will want to put caffeine on her list of unnecessary substances which she should avoid." The old saying that a pregnant woman is "eating for two" has a special meaning in regard to caffeine. The Commissioner also noted that studies to date support the wisdom passed down from generation to generation that caffeine is not for pregnant women or children. "We hope some day to have better scientific assessments," Goyan said, "but for now adhering to the guidance of our parents seems to be the most prudent course." 6) ANOTHER PROBLEM: CARAMEL COLORING

"Cola drinks contain caramel coloring which, according to some researchers, has genetic effects and is a cancer-causing suspect. Polyethylene glycol is used as an ingredient sometimes. Glycol is used in anti-freeze in automobiles and as an oil solvent." Perhaps you have noticed that pouring cola drinks on your windshield in a snow or ice storm will keep the windshield from freezing over with ice. 7) BUBBLES AND FIZZ - NOT INNOCENT "The bubbles and fizz in soft drinks can potently burn human insides; this is caused by the phosphoric acid and carbon dioxide. The phosphorus in the acid upsets the body's calciumphosphorus ratio and dissolves calcium out of the bones. This can eventually result in osteoporosis, a weakening of the skeletal structure, which can make one susceptible to broken bones. Also, the phosphorus fights with the hydrochloric acid in human stomachs and renders it ineffective. This promotes indigestion, bloating and gassiness in many individuals. Carbon dioxide is a waste product exhaled by humans, but they ingest it when they drink cola drinks."

8) METABOLISM CAN BE ALTERED: THAT SPELLS TROUBLE Heavy soft drink consumption can interfere with your body's metabolization of iron and diminish nerve-impulse transmission. Sodas may contain - but are not required to disclose such ingredients as ethyl alcohol, sodium alginate (possibly hazardous for pregnant women), brominated vegetable oil (found harmful to vital organs of animals and considered a health risk to heavy consumers of beverages containing it) and caffeine. 14 9) BLOOD PRESSURE ALTERATION: ON THE HIGH SIDE Diet sodas that are low in calories are high in sodium. Six ounces of regular Pepsi cola has 5 mg of sodium; Diet Pepsi has 31 mg (But who only drinks 6 oz at a time now? - classic Coke Cola has 19 mg sodium. High blood pressure is very common ailment in our society, I wonder why! And who shouldn't have high sodium in their diets? My personal answer to that question, is that the condition which causes a person to have high blood pressure should be considered a condition where limiting sodium intake would be helpful. Here are a few of those; certain tumors, kidney disease, adrenal or thyroid or pituitary gland malfunction, even diabetes and arteriosclerosis or hardening of the arteries. Soft drinks should be off limits to persons with these conditions. 10) HEALTH DANGERS OF REUSING PLASTIC Many are unaware of poisoning caused by re-using plastic bottles. Some of you may be in the habit of using and re-using your disposable SOFT DRINK BOTTLES (eg. Pepsi. Coke, Sprite etc), keeping them in your car or at work. Not a good idea. In a nutshell, the plastic (called polyethylene terephthalate or PET) used in these bottles contains a potentially carcinogenic element (something called diethylhydroxylamine or DEHA). The bottles are safe for one-time use only; if you must keep them longer, it should be or no more than a few days, a week max, and keep them away from heat as well. Repeated washing and rinsing can cause the plastic to break down and the carcinogens (cancercausing chemical agents)can leach into the water that YOU are drinking. Better to invest in water bottles that are really meant for multiple uses. This is not something we should be scrimping on. Those of you with family - please advise them, especially for their children's sake."

15

RESEARCH METHODOLOGY

PURPOSE OF THE STUDY

The main aim of this research study is to analyze the preference of people (of different age groups) on consumption patterns of Soft Drinks and Consumer Awareness regarding the hazards of soft drinks.

OBJECTIVE OF THE STUDY

To study the preferences of the people for soft drinks. To find whether the consumers are aware regarding the adverse effect of soft drinks concerning their health To find out the factor(s) that influences the consumers consumption of soft drinks. To test the know-how of the consumers regarding the various existing brands of soft drinks and fruit juices. To find out how the beverage is positioned in the mind of the consumers.

SCOPE OF THE STUDY

This study is confined to Kannur Town region covering areas of Radius of 5 Kms Seasonal drinks are not considered in the study. We are considering only canned and bottled drinks

We are not considering water & alcoholic drinks.

RESEARCH DESIGN
A research design is a framework or blueprint for conducting the marketing research project. It specifies the details of the procedures necessary for obtaining the information needed to structure and/or solve marketing research problem. On the basis of fundamental objectives of the research we can classify research design into two general types: 1) EXPLORATORY RESEARCH 2) CONCLUSIVE RESEARCH Exploratory research is one type of research design, which has its primary objective the provision of insights into, and comprehension of, the problem situation confronting the researcher. Conclusive research is designed to assist the decision maker in determining evaluating and selecting the best course of action to take in a given situation. Conclusive research can be further divided into two types: Descriptive Experimental

The research design used in this project is a DESCRIPTIVE DESIGN.

Descriptive study as the name implies is designed to describe something-for example the characteristics of users of a given product, the degree to which the product use the varies with income, age, etc.

SAMPLING TECHNIQUE USED:

This research has used convenience sampling technique. 1) Convenience sampling technique: Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient.

SELECTION OF SAMPLE SIZE:

For the study, a sample size of 80 has been taken into consideration.

SOURCES OF DATA COLLECTION:

Research will be based on two sources: 1. Primary data 2. Secondary data

1) PRIMARY DATA: Questionnaire: Primary data was collected by preparing questionnaire and the people
were randomly being requested to fill them.

2) SECONDARY DATA:

Secondary data will consist of different literatures like books which are published, articles, internet and websites. In order to reach relevant conclusion, research work needed to be designed in a proper way.

STATISTICAL TOOLS USED

The main statistical tools used for the collection and analyses of data in this project are: Questionnaire Pie Charts Bar Diagrams

DATA ANALYSIS & FINDINGS

DATA ANALYSIS
1) Do you like soft drinks? YES 83% NO 17%

ANALYSIS: From the survey it was found that amongst 80 respondents. a) 83% of the respondents likes soft drinks. b) 17% of the respondents dont likes soft drinks.

2) Frequency of consumption of soft drink in a week?

Daily 6%

2-4 Times 3%

More than 4 times 11%

once in a week 58%

ANALYSIS: From the survey it was found that amongst 80 respondents. a) 6% of the respondents consume Soft Drinks daily. b) 25% of the respondents consume Soft Drinks 2-6 times. c) 11% of the respondents consume Soft Drinks more than 4 times. d) 58% of the respondents consume Soft Drinks once in a week.

3) In what occasions, do you do you often consume the soft drinks? Feeling thirsty 38% Without any reason 36% Parties Celebrations 36% Hard work 1%

ANALYSIS: From the survey it was found that amongst 100 respondents. a) 38% of the respondents consume Soft Drinks when they feel thirsty. b) 36% of the respondents consume Soft Drinks at the time of celebrations. c) 36% of the respondents consume Soft Drinks without any reason. d) 1% of the respondents consume Soft Drinks on other occasions.

4) What induces you to buy Soft Drinks? Price & Quantity 8% Health Drink 5% Status symbol 5% Taste 50% Variety 13% Advertisem ent 13%

ANALYSIS: From the survey it was found that amongst 100 respondents. a) 08% of the respondents consume soft drinks because of its price. b) 05% of the respondents consume soft drinks because it is a health drink. c) 05% of the respondents consume soft drinks because it is a status symbol. d) 50% of the respondents consume soft drinks because of its taste. e) 13% of the respondents consume soft drinks because of variety. f) 13% of the respondents consume soft drinks because of Advertisement

5) Do advertisements affect your purchases?

To Greater Extend To Great Extend To Lesser Extend

Neutral

To Less Extend

13%

30%

35%

13%

10%

ANALYSIS: From the survey it was found that amongst 80 respondents. a) 13% of the respondents think that advertisements affect their purchases to greater extend b) 30% of the respondents think that advertisements affect their purchases to great extend. c) 35% of the respondents thinks that advertisement affects their purchases to neutral d) 13% of the respondents thinks that advertisement affect their purchases to less extend e) 10% of the respondents thinks that advertisement affect their purchases to lesser extend.

6) Which soft drink do you like more?

Coca cola

Pepsi

Miranda

Limca

Maaza

Other

10%

21%

28%

5%

18%

19%

ANALYSIS: From the survey it was found that amongst 80 respondents. a) 10% of the respondents consume Cocacola. b) 21% of the respondents consume pepsi. c) 28% of the respondents consume miranda. d) 5% of the respondents consume Limca e) 18% of the respondents consume Maaza f) 19% of the respondents consume other soft drink

These are the other soft drink which are preferred by people 7-UP Dew Tropicano Slice Frooti Fanta Sprite

7) Do you take the soft drink every time? YES 31% NO 69%

ANALYSIS: From the survey it was found that amongst 80 respondents. a) 31% of the respondents consume soft drink every time. b) 69% of the respondents doesnt consume soft drink every time.

8) Which Flavor do you like most?

Mango 24% Orange 31% Lemon 21% Apple 10% Others 14%

ANALYSIS: From the survey it was found that amongst 80 respondents. a) 24% of the respondents like mango flavor. b) 31% of the respondents like orange flavor c) 21% of the respondents like lemon flavor. d) 10% of the respondents like apple flavor e) 14% of the respondents like some other flavor f) Other flavours include strawberry, vanilla, grape, etc 9) How do you rate canned juices as compared to fresh juices?

Equivalent to fresh juice 8%

Have artificial added flavor 33%

healthy with preservatives 10%

not as healthy 50%

ANALYSIS: From the survey it was found that amongst 80 respondents. a) 8% of the respondents think canned juices are Equivalent to fresh juices. b) 33% of the respondents think canned juices Have artificial added flavor. c) 10% of the respondents think canned juices are Healthy but have preservatives. d) 50% of the respondents think canned juices are not as healthy.

10) Do you think taking too much soft drink would cause health problems?

Yes 65%

No 15%

No comment 20%

ANALYSIS: From the survey it was found that amongst 80 respondents a) 65% of the respondents think that too much consumption would cause health problem. b) 33% of the respondents think that soft drink consumption will not cause any health problem. c) 10% of the respondents didnt have any opinion on this.

11) Have these drinks caused any health problems for you?

Yes 15

No 65

ANALYSIS: From the survey it was found that amongst 80 respondents a) 81% of the respondents didnt have any health problem after having soft drink. b) 33% of the respondents did have some health problem after the consumption of soft drink.

Are you aware that you are priced more than 10 times than of the real price of the drink?

Yes 50%

No 50%

ANALYSIS: From the survey it was found that amongst 80 respondents Only 50% of the respondents know that they are priced 10 times more than of real price.

12) Considering the TV ad. Which soft drink ad do you like more?

Coca cola 13%

Pepsi 23%

Mirinda 20%

Thumsup 29%

Maaza 5%

Other specify 11%

ANALYSIS: From the survey it was found that amongst 80 respondents. a) 13% of the respondents like the advertisement of cocacola. b) 23% of the respondents like the advertisement of pepsi c) 20 % of the respondents like the advertisement of Miranda d) 29% of the respondents like the advertisement of thumpsup e) 5% of the respondents like the advertisement of maaza f) 11% of the respondents like the advertisement of other softdrink .

13) After seeing the ad did you like to switch on to that one?

Yes 38%

No 63%

ANALYSIS: From the survey it was found that amongst 80 respondents. a) 41% of the respondents didnt switch to other soft drink after seeing the ad . b) 39% of the respondents did switch to other soft drink after seeing the ad .

14) After the plachimada incident have you reduced consuming soft drinks?

Yes 49%

No 51%

ANALYSIS: From the survey it was found that amongst 80 respondents. a) 51% of the respondents did reduce consumption after plachimada incident. b) 49% of the respondents didnt reduce consumption after plachimada incident.

15) Do you think the superstar should stop promoting unhealthy soft drinks? Yes 46% No 23% No comments 31%

ANALYSIS: From the survey it was found that amongst 80 respondents. a) 46% of the respondents feel that super star should stop promoting unhealthy soft drinks. b) 23% of the respondents dont have any problem. c) 31% of the respondents dont have any comment. 16) What all changes do you want the manufacture to make in it to promote sale?

Quality 48%

Price 33%

Advertisement 14%

More flavour 10%

Other specified 0%

ANALYSIS: From the survey it was found that amongst 80 respondents a) 48% of the respondents want manufacture to increase quality to promote sale. b) 33% of the respondents want manufacture to change price to promote sale. c) 14% of the respondents want manufacture to put more concentration on advertisement to promote sale. d) Only 10% of respondent want manufacture to add more flavour to soft drink so as to promote sale.

17) In your opinion which all deceases could the pesticides in the soft drinks cause? Tooth decaying 26% Pregnancy issues 11%

Cancer 25%

Paralysation 13%

Dont know 25%

ANALYSIS: From the survey it was found that amongst 80 respondents. a) 25% of the respondents think that cancer is caused by the pesticides in soft drinks b) 13% of the respondents think that paralysation is caused c) 26% of the respondents think that tooth decaying is caused by the pesticides in the soft drinks. d) Out of this about 7% of the respondents thinks that all the above deceases are caused by pesticides. e) 25% of the respondents dont know what decease is caused by the pesticides in the soft drinks.

18) Soft drinks such as colas contain significant quantities of? Caffeine 40% Nicotine 10% 36 Tannin 3% Rennin 4% Dont know 43%

ANALYSIS: From the survey it was found that amongst 80 respondents a) 40% of the respondents know that soft drinks contain caffeine. b) 10% of the respondent thinks that there is nicotine in soft drinks. c) 3% of the respondents know that soft drinks contain tannin. d) 4% of the respondents know that soft drinks contain rennin. e) 43% of the respondents dont have any knowledge what soft drink contain.

19) What are the things that govt. need to do, to stop the unhealthy practices carried down 37 by soft drink companies? Increase standards 30% Frequent quality check 59% Control on Advertisement 11%

ANALYSIS: From the survey it was found that amongst 80 respondents. a) 30% of the respondents feel that government should increase the standards. b.) 59% of the respondents feel that there should be frequent quality check. c) 11% of the respondents feel that there should be control on advertisement.

38 20) Do you prefer the usage of plastic bottles of soft drinks? Yes 64% No 36%

ANALYSIS: From the survey it was found that amongst 80 respondents a) 64% of the respondents prefer the usage of plastic bottles. b) 36% of the respondents do not prefer the after use of plastic bottles.

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SUGGESTIONS

SUGGESTIONS In the survey conducted, it was suggested by most of the respondent that govt. should have frequent quality check in order to promote sales and to attain consumer satisfaction. Frequent consumption of soft drink will cause health problems. From the survey more than half of the respondent suggested that they prefer use of plastic bottles instead of other. Advertisement acts as a very important role here. So if heavy advertisements are carried out it will definitely increase purchase. It is also to be noted that govt. should also take guard of health of the consumer, so appropriate measures are to be taken. Prices are to be reduced to increase sales, since the consumers are aware that they are charged 10times more than the price of the drink. If the quality is not improved than its better that superstar should stop promoting unhealthy products.

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LIMITATION OF THE STUDY

LIMITATION OF THE STUDY

The study was confined to some areas of KANNUR only. Chances of some biasness could not be eliminated. Time was the major constrain. Only limited sample size (80) was possible for such a vast research on such a period of time .i.e. one month Interaction with the respondents was also limited due to their busy work. Due to the changing life style and preferences, it was not necessary that they will consume same soft drink every time. There was a chance that respondent will make assumptions while filling the questionnaire.

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CONCLUSION

CONCLUSION
Following are the concluding points taken into consideration after the conduct of the research study: An important finding that emerged out of the survey was that 83%of people like to have soft drinks while 17% not like. Through the research it was conveyed that weekly consumption of soft drinks is more than daily consumption Most of the respondents view soft drinks as an aid to put off thirst A majority of the respondents consume soft drinks at the time of parties & celebrations. Most of the respondents consume soft drinks because of its taste. Most of the respondents were of the strong view that advertisements affect their purchases. Considering the TV ad thums up is liked mere but TV ad does not made most of the consumer switch on to that one. About half of the respondent told that taking too much of the soft drink would cause health problems but very few of them caused health problem before. Most of the respondent like Miranda since they like orange flavor. 49% of them reduced consuming soft drinks after plachimada incidents.

 Most of them concluded while saying that the govt. to do frequent quality check in order to increase sale without causing harm to consumers.

42

ANNEXURE

QUESTIONNAIRE
PERSONAL DETAILS Name Age Gender Occupation . 25-35 Female Housewife Business Service 35-50

- 15-25 - Male - Student

1) Do you like soft drinks? Yes No 2) Frequency of consumption of soft drink in a week? Daily 2-4times more than 4 times 3) On what occasions, do you often consume the Soft Drinks? Feeling Thirsty Parties / Celebrations Price with quantity Taste Variety Without any reason (just like that) Others, please specify.. Health Drink Advertisement Neutral To less extend To Status symbol once in a week

4) What induces you to buy Soft Drinks?

5) Do advertisements affect your purchases? To greater extend lesser extend 6) Which soft drink do you like more? Cocacola Limca Yes Pepsi Maaza No Mirinda Other(specify) To great extend

7) Do you take the same soft drink every time?

8) Which flavor do you like most? Mango Apple Orange Other(specify) lemon ________ Have artificial added flavor Healthy with

9) How do you rate canned juices as compared to fresh juices? Equivalent to fresh juices preservatives Yes Yes drink? Yes Cocacola No Pepsi Mirinda Thumsup Maaza 13) Considering the TV ad.which soft drink ad do you like more? Others specify.. 14) After seeing the ad did you like to switch on to that one? Yes Yes Yes Quality No No No Price No comment Advertisement More Flovour 15) After the Plachimada incident have you reduced consuming soft drinks? 16) Do you think the super stars should stop promoting unhealthy soft drinks? 17) What all changes do you want the manufacturer to make in it to promote sale? Others (specify). 18) In your openion which all desesase could the pesticides in the soft drink cause? Cancer Dont know Caffeine know 20) What are the things that govt. need to do, to stop the unhealthy practices carried down by soft drink companies? Paralisation Others specify Nicotine Tannin Rennin Dont Tooth decaying Pregnancy issues No No Not as healthy No comment

10) Do you think taking too much soft drink would cause health problems? 11) Have these drinks caused any health problem for you before? 12) Are aware that you are being priced more than 10 times than of the real price of the

19) Soft drinks such as colas contain significant quantities of

Increase standards advertisement

Frequent quality checks

Control on

21) Do you prefer the after usage of plastic bottles of soft drinks/ Yes No

BIBLIOGRAPHY

BIBLIOGRAPHY
http://en.wikipedia.org/wiki/Beverage www.foodindustryindia.com http://fnbnews.com/article/detarchive.asp?articleid=25105&sectionid=3 http://fnbnews.com/article/detarchive.asp?articleid=24983&sectionid=3 http://fnbnews.com/article/detarchive.asp?articleid=24965&sectionid=3 http://fnbnews.com/article/detarchive.asp?articleid=24849&sectionid=3 http://fnbnews.com/article/detarchive.asp?articleid=25039&sectionid=3 http://www.foodindustryindia.com/newfood/detailnews.jsp?n=Xtazy,%20another %20energy%20drink%20for%20the%20Indian%20market&id=598 http://fnbnews.com/redfr.asp?fn=/other/aboutus.asp&title=About %20Us#Food&beverage www.google.com Kothari C R, Research and Methodology- Methods & Techniques, New Age International (P) Ltd., 2004

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