PROJECT REPORT ON

A STUDY OF FACTOR INFLUENCING CHOICE OF SOFT DRINKS IN JAIPUR CITY

YEAR: 2012

UDAI INSTITUTEOF MANAGEMENT STUDIES

SUBMITTED BY ANKIT PUNDIR

GUIDED BY VISHVASH GUPTA

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

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.

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.

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 consumer expenditure 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 5

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 of increasing 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
6

EMERGING BEVERAGE TRENDS:- The beverage industry is a shifting landscape as volume leading categories such as soft drinks and beer continue to experience share erosion while functional and health & wellness oriented categories enjoy double-digit volume growth:

Soft Drinks Domestic Beer Energy Drinks Bottled Water RTD Tea Sports Drinks

-3.9% -1.2% +53% +25% +23% +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 growing market niche led by Honest Tea (http://www.honesttea.com/) and Republic of Tea (http://www.republicoftea.com/).

PROJECT BACKGROUND Beverage Market

The Indian Beverage Market

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

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 selfreliance. 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

COMPANY PROFILE

11

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 Duke and 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 focus considerable 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. 12

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 has leveraged 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.

13

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 in the 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 below1. 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 followsSoft 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 Pepsi Quantity 200ml, 300ml, 600ml, 1lt, 2lt. 16

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

20

RESEARCH METHODOLOGY
Scope of the study:
The research pertains to the study of consumer choice for soft drinks at Jaipur market. 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 are1. 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 have creped in. 3. The sample of convenience, thus it is not the true representative of the complete.

MEASUREMENT ERROR
There was certain degree of misinterpretation by the respondents about the points raised in the interview. 24

ANALYSIS & INTERPRETAYION

25

Data Analysis and Interpretation

1. Gender wise profile: No. of Respondents 70 60 130 In% 54% 46% 100%

Males Females Total

Graph 1.1

Gender w ise P rofile

Female 46%

M ale 54%

M ale Fem ale

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:

10-20 years In % 21-30 years In % 31-40 years In % More than 40 years In % Total

Male Female Total

12 14 26

17% 23% 20%

28 20 48

40% 33% 37%

21 16 37

30% 27% 28%

9 10 19

13% 17% 15%

70 60 130

Graph 2.1

26

Age W ise Profile of Males Respondents

10-20 years 21-30 years 31-40 years More then 40 years 13% 17%

30% 40%

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
10-20 years 21-30 years 17% 31-40 years More then 40 years 23%

27% 33%

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:

27

Service

In % 40% 17% 28.%

Business

In % 20% 0% 10%

Professionals

In % 13.% 13.% 13.%

Other [Students housewives etc.]

In % 27% 70% 47%

Male Female Total

28 10 38

14 0 14

9 8 17

19 42 61

Occupation Wise Profile of Males

Service 27% 40% Business Professionals Students

13%

Graph 3.1

20%

Interpretation:
As the above graph clearly shows that there were most of males respondents [40%] were service category

Occupation Wise Profile of Females Service Students Professionals Housew ife 17% 43%

27%

Graph 3.2

13%

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

28

Rs. 10,000

15,000 53% 70% 61%

20,000 13% 7% 10%

20,000 13% 13% 13%

Male Female Total

37 42 79

9 4 13

9 8 17

15 6 21

21% 10% 16%

70 60 130

Graph 4.1
Incom e Wise Profile of Males Less then Rs. 10,000 15,000-20,000 21% 10,000-15,000 More then Rs. 20,000

13% 13%

53%

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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Incom e Wise Profile of Fem ales Less then Rs. 10,000 15,000-20,000 10% 13% 10,000-15,000 More then Rs. 20,000

7% 70%

Interpretation:
As the above graph clearly shows that there were most of females respondents [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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R anking of Soft D rinks Flavors of R espondents M ales Fem ales

Lemon Mango Orange Cola 0 1 1 1 2 2 2

3 4 3 4

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 Recall Top of the mind recall Unaided recall

Cola

Pepsi

Thums up

Fanta

Slice

Mirinda

Limca

Fruity

Maza

70%

60%

60%

65%

60%

40%

45%

55%

60%

30%

40%

40%

35%

40%

60%

55%

45%

40%

Graph 6.1

31

Brand Recall of different soft drink brands 70 60 Persent 60 65

Top of the mind recall Unaided recall

60

60 45

55 55 45

60

40 30

40

35

40

40

40

Pe ps i Th um s up

nd a

Li m ca

ok e

Fa nt a

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 Taste Price Health Weather Social Gathering Packaging Ads & offers Status Graph 7.1 Male 1 2 3 4 5 6 7 8 Female 1 5 3 2 4 6 8 7

M i ri

Fr ui ty

M az a

Sl ic

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Factors that influence the consum er Male

Status Ads & offers Packaging Social Gathering Weather Health Price Taste 0 1 1 1 2 3 4 5 6 7 8 2 2 3 3 5 4 5 6 6

Female
7

8 8

Rank

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:

Less than 5 times More than 10 times

In% 67% 74% 70%

6-10 times

In% 17% 13% 15%

In% 3% 0% 2%

Undecided

In% 13% 13% 13%

Total

Male Female total

47 44 91

12 8 20

2 0 2

9 8 17

70 60 130

Graph 8.1

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Average consumption per week by Males Less than 5 times 6-10 times 13% 3% 17% More than 10 tim es Undecided

67%

Graph 8.2

34

Average consumption per week by Females Less than 5 tim es 0% 13% 6-10 tim es 13% M than 10 tim ore es Undecided

74%

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:

More than 500ml.

200ml.

In% 33% 40% 37%

300ml.

In% 40% 40% 40%

500ml.

In% 27% 20% 23%

In% 0% 0% 0%

Total

Male Female Total

23 24 47

28 24 52

19 12 31

0 0 0

70 60 130

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Graph 9.1

Quantity of consumption at once by Males 200 m l. 300 ml. 500 m l. 0% 27% 33% More than 500 m l.

40%

36

Graph 9.2

Quantity of consumption at once by Females 200 ml. 20% 300 ml. 500 ml. 0% 40% More than 500 ml.

40%

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% 82.86% 90% 87.69% Alone In% 17.14% 10% 12.31% Total

Male Female Total

58 54 112

12 6 18

70 60 130

Graph 10.1
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Drinking Pattern of Males

Alone

17.14%

With group

82.85%

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

Graph 10.2
Drinrking Pattern of Females

Alone

10%

With group 0% 20% 40% 60% 80%

90% 100%

Graph 10.3

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Drinking Pattern of all Respondents

Alone

12.30%

With group

87.69%

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

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 Male Female Total 14 20 34 In % 20% 33% 26% Outside location 30 18 48 In % 43% 30% 37% Cinema Halls 12 18 30 In % 17% 30% 23% Social Gathering 5 4 9 In % 7% 7% 7% B/C parties 9 0 9 In % 13% 0% 7%

Graph 11.1
Area of consumption for Males At hom e/office At cinem halls a At corporate/business parties At outside locations At social gathering

13% 7%

20%

17% 43%

Graph 11.2
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Area of Consumption for F emales At hom e/office At cinem halls a At corporate/business parties At outside locations At social gathering

7% 30%

0% 33%

30%

Graph 11.3
Area of Consumption At home/office At cinema halls At corporate/business parties 7% 7% At outside locations At social gathering

26%

23%

37%

Interpretation:
As the about graphs show that mostly [37%] customers prefer drinking at outside location & at home/office and cinema halls. This means customer drink these drink whenever they go for outing locations.

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

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Soups

In % 20% 27% 23%

Hot drinks

In % 13% 17% 15%

Soft Drinks

In % 40% 33% 37%

Fruit juices

In % 27% 23% 25%

Total

Male Female Total

14 16 30

9 10 19

28 20 48

19 14 33

70 60 130

Graph 12.1
Consumer choice when multiple choices are given without price for Males Soups 27% Hot Drinks Soft Drinks Fruit Juices 20%

13% 40%

Graph 12.2
Consumer choice when multiple choices are given w ithout price for Females Soups 23% Hot Drinks Soft Drinks Fruit Juices 27%

33%

17%

Graph 12.3
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Consumer choice when multiple choice are given without price Soups 25% Hot Drinks Soft Drinks Fruit Juices 23%

15% 37%

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

13. Sources of Information:

News Paper In % T.V. ads In % Hoarding In % By retailers In %

Total 70 60 130

Male Female Total

12 6 18

17% 10% 14%

42 42 84

60% 70% 64%

12 10 22

17% 17% 17%

4 2 6

7% 3% 5%

Graph 13.1
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Source of inform ation for Males New spapers T.V. ads. 6% 17% Hoardings 17% By retailers

60%

Graph 13.2
Source of information for Females New spapers 17% T.V. ads. 3% Hoardings 10% By retailers

70%

Graph 13.3
Source of inform ation New spapers 17% T.V. ads. 5% Hoardings By retailers

14%

64%

Interpretation:
From the above graph it is clearly visible that main source of information to 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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Male Female Total

Yes 49 24 73

In % 70% 40%

No 21 36 57

In % 30% 60%

Total 70 60 130

Graph14.1
Influence of Brand Ambassador consumer choice of Soft drinks

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

30% 60% No 70% 40% Males Females Yes

Interpretation:
From the above graph clearly depicts that here is a big difference among the response of male & female customer, as in the opinion of most of the male customers [70%] Brand ambassador influences their choice whereas in the opinion of female majority [60%] said that there is no impact of any Brand Ambassador upon their choice.

15. Preferred Celebrities as Brand Ambassador according to Consumers:

Bollywood Celebrities In % Sports Celebrities In % Both In % Other celebrities In %

Total 70 60 130

Male Female Total

30 16 46

43% 27% 35%

12 28 40

17% 46% 31%

23 12 35

33% 20% 27%

5 4 9

7% 7% 7%

Graph15.1
44

P referred C elebrities as B rand A mbassador according to Males B ollywood 7% 33% 43% S ports B oth O ther

17%

Graph 15.2
P referred Celebrities as B rand Ambassador according to F emales B ollywood 7% 20% S ports B oth O ther 27%

46%

Graph15.3
45

Preferred Celebrities as Brand Ambassador Bollyw ood 7% 27% 35% Sports Both Other

31%

Interpretation:
As the graph depicts that highest 35% people said that bollywood celebrities should be the brand ambassador of soft drinks and than 27% were with both but here is big difference among the choice of male & female customers.

16. Most preferred sales promotion tools/techniques:

Scratch/ Magic cards 7 8 15 Extra Quantity offer 14 10 24

Buy 2 get 1 free Male Female Total 12 14 26

Price discounts 30 22 52

Something free 7 6 13

Total 70 60 130

Graph 16.1
46

Most preferred sales promotion tools/techniques by Males Buy 2 get 1 free Extra quantity offer Scratch/Magic card Something free 10% 20% Price Discount

17% 10%

43%

Graph 16.2
Most preferred sales promotion tools/techniques by Females Buy 2 get 1 free Extra quantity offer Scratch/Magic card Something free
1 0% 1 7% 23%

Price Discount

1 3% 37%

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M os t pre fe r re d s ale s prom otion tools /te chnique s Buy 2 get 1 f ree Scratch/Magic card Price Discount

Extra quantity of fer Something free 10% 18% 12% 40%

Graph 16.3

20%

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

17. Brand Loyalty among Consumers of Soft drinks:

Not Brand loyal 42 42 84

Brand loyal Male Female Total 28 18 46

In % 40% 30% 35%

In % 60% 70% 65%

Total 70 60 130

Graph 17.1

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B rand Loyalty among Consumers of Soft drinks

100% 80% 60% 40% 20% 0% 40% 30% Fem ales 60% 70% N o Yes

M ales

Interpretation:
As the above graphs show there are 35% customers who brand loyal but males 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 drink due 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: 49

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 10,00015,000. 13% of the respondents fall into the income group of 15,00020,000. 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. 50

 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 is excluded.

13. Source of information:

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 14% of the consumers said that they get information different brands of soft drinks through News paper Ads. 64% of the consumers said that they get information different brands of soft drinks through T.V. Ads. 17% of the consumers said that they get information different brands of soft drinks through hoardings. 5% of the consumers said that they get information different brands of soft drinks through by retailers.

regarding regarding regarding regarding

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 & female consumer 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. 52

 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 brand ambassador 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 be very 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 : 53

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 but companies 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 55

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: Age group: [ ] Male [ ] Female [ ] 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 56

[ ] 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 these beverages available in the market? [ ] Newspapers ads. [ ] T.V. ads. [ ] Hoardings & Banners [ ] By retailers 57

[ ] 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

BIBLIOGRAPHY

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Bibliography
Websites: I. www.google.co.in II. www.pepsico.com III. www.cocacola.com 59

Books: I. C.R. Kothari

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