Acknowledgements

As we complete this project we praise God the Almighty Father for giving us mental strength and good health, which we consider very important for our successful completion. We thank our director Rev. Fr. Basani Prakash for allowing us to take up a useful project in an industrial establishment so that we may gain first hand experience. We sincerely thank our respected principal, Mr. R. L. Murthy for his encouragement and for recommending us for the project. We express our gratitude to our external guide Mr. In a special way for readily accepting our request for doing this project at his esteemed organization and assigning a very useful and challenging project. He has taken special interest in supervising our project and evaluating our work from time to time. We also thank him for allowing us to freely use the company resources. We thank Mr. Kalyan Reddy, Lecturer CJITS, for accepting to be our internal guide and supporting all the way. He took pains for understanding our project and suggested ways to improve the project. His encouragement and guidance are invaluable. We thank our Head of the Department Mrs. Uma N. Dulharre, for accepting our project and organizing internal seminars for our project. Her deadlines were instrumental for the timely completion of the project.

We thank Mr. M. Vijay Chandra Rao, Software Engineer, Wipro Technologies for evaluating us by assigning a mini-project prior to the actual project, which helped us gain self-confidence and team spirit. We also thank the entire faculty and students at CJITS who participated in the project seminars and indirectly helped us by the way of their encouragement and constructive criticism.

Finally we acknowledge the support and encouragement we received from our family members without which the project work might not have been so smooth.

PEPSI

Hyderabad Beverages Private Limited

Regd. Off. : 105, 2nd Floor, E Block, Surya Towers, S.P.Road, Secunderabad. 500 003 : 26326222 (6 lines) Fax: 040 7894188

Dt: 26-04-2003

TO WHOM SO EVER IT MAY CONCERN

This is to certify that K. RAMESH, is a bonafide student of the Aurora School Of Business Management, Chikkadapally, Hyderabad. He has completed his project work titled Consumer Perception on Soft Drinks with special reference to PEPSI Co. under my guidance successfully through Hyderabad Beverages Pvt. Ltd., in our organization from 15-03-2002 to 25-04-2003. He is found to be very dynamic and hardworking, we wish him a bright future and success.

(K.V.KISHORE) G.M. Sales & Marketing.

Table of Contents

1. ABSTRACT OF THE STUDY 2. INTRODUCTION TO SOFT DRINK INDUSTRY 3. PROFILE OF HYDERABAD BEVERAGES (P) Ltd. 4. AN OVERVIEW OF CONSUMER BUYING BEHAVIOUR 5. OBJECTIVE OF THE STUDY 6. RESEARCH METHODOLOGY 7. CONCLUSIONS 8. SUGGESTIONS 9. LIMITATIONS 10. APPENDAGES 11. SURVEY ANALYSIS AND INTERPRETATION 12. BIBLIOGRAPHY

1 4 15 19 30 31 32 34 36 37 40 54

A Project Report On

CONSUMER PERCEPTION ON SOFT DRINKS WITH SPECIAL REFERENCE TO PEPSI CO.

A Dissertation submitted in partial fulfillment of the requirement for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

By
K. RAMESH (ROLL NO. 4201112)

Under the Guidance of

MS. AATHIYA AURORA SCHOOL OF BUSINESS

(Affiliated to OSMANIA University)

Chikkadapally, Hyderabad.
2001 - 2003

ABSTRACT OF THE STUDY

The new economic policies of the Government of India adopted in the mid eighties were further impetus by the early nineties. The Indian market has under gone considerable change, as a direct consequence of many of these policies and soft drink industry is no exception to this.

Keeping the above mention perspective in the background, the researcher has selected soft drink market, since the marketing task has become more challenging and intensive competition as opened up new vistas.

Companies are evolving marketing strategies by studying the demands of the market place increasingly penetrating in to appropriate market segments introducing differentiated products to improve their market share. The soft drink market has achieved an accelerated growth in the past decade.

Soft drink includes all type of non-alcoholic, carbonated flavored or otherwise sweetened beverages. The entry PEPSI and the re-entry of COCA-COLA in the Indian market are inevitably facing stiff competition but
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the

ultimate

winner

is

customer/consumer. This as lead the researcher to study the perception of consumers towards different brands of soft drinks and to gauge out the promotional strategies being adapted by marketers to lure promiscuous buyers and win a large share in the markets.

The Cola wars are intensifying and bringing manifold changes in the soft drink industry. The researcher has conducted a detail survey, interpreting the responses to study the perceptions of the consumers. Now the people with changing life styles and increase income labours have made the soft drink a comman man drink.

Even though the existing system of marketing of soft drink has not tapped such a big market in the interiors of the countries specially the rural areas, as marketing in the sub urban and rural areas is developing slowly.

Despite the soft drink industry is growing at a very healthy pace and stands at 18% per annum. The market for cool drinks comprises of teens and youngsters in the 16-25 years age group who are largest consumers of the soft drinks in the country followed by 26-35 years age group people and adults in the age
-2-

group of 35 and above, followed by the age group of below 15 years hence, companies must develop their product and marketing strategies to suit their wants and needs.

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INTRODUCTION TO SOFT DRINKS INDUSTRY

HISTORY The history of soft drink market in India started way back in 1949 with the introduction of soft drink by parle group, followed by other manufactures of the soft drinks like pure drinks CocaCola, Mc-Dowell, Duke, etc, after the exist of Coca-Cola in 1978, parle become the undisputed market leader till recent past and early nineties. In 1990s reemerges of Pepsi gave new dimension to soft drink industry.

CHANGING FACTS OF SOFT DRINK INDUSTRY Initially when soft drinks were introduced in the 19th century it was positioned as a thirst quenching drink but due to the changing times it is now positioned as a fun drink. Soft drinks are consumed by almost every section of the society for their cool and tasty attributes. The soft drinks in India were available only in 200ml with Thums-Up, first 250ml was to counter the entry of Pepsi and secondly to increase the market share. The 250ml Thums-Up was introduced before the summer of 1989 as a Maha Cola with simple and clear position as more Cola, in same price. It was the clear conveying of a consumer of benefit and that did the
-4-

trick hands the sales soared. The Campacola reacted by introducing 300ml bottle in Delhi but this did not work as the price was not same and consumers benefit was not clear. But with the success of the 250ml bottle Parle to decided to carry on the attract to its logical conclusion in 1990s, by then Lehar Pepsi made its entry and was doing well in Delhi. So Thums-Up came with a jumbo offer of 500ml. Concept developed by Pale group in India was followed by Pepsi and later on such tricks were common in soft drink industry in India, for their bottle supremacy, defaulting benefits for consumers and increasing their market share. Pepsi foods are now a head of their competitor by introducing 200ml and 2.5 liter plastic bottle (economy pack).

In 1993 Coca-Cola again re-introduced himself in Agra, and after that they purchased Parle soft drink group with unbelievable price. The massive entry was threatened the Pepsi cola who was the market leader at that time and Pepsi was introduced himself again as a most preferred Cola but the strategies of Coca-Cola was so wrong due to that up to now the company is in the loss. But the strongest weapon in its hand is Thums-Up. In starting the CocaCola Cos, try to dominate upon Thums-Up, so that they were changes in taste and slow down the promotional activities. But

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later they changed their strategies and again trying to position it with slogan of I WANT MY THUNDER.

In case of Lemons drink Limca was the only brand available in cloudy lemon flavor with enjoyed monopoly for almost two decades, because the consumers associated this drink with the traditional Nimbu Pani, and isotonic salts it contains do indeed help quench thirst. The Pepsi attacked the Gold Spot in 1990 and 1991 by introducing Lehar 7up and Marinda, also felt the need of attacking its competitor parle Limca by introducing Lehar Marinda also felt the need of attacking its competitor Parle Limca by introducing Lehar Team, actually the year 1993 saw the emergence of Lehar teem 250ml bottle.

PRESENT SENERIO IN INDIA The government considered soft drink as a industry due to this the excise duty levied by the government of soft drink is very high. The bottle cost from Rs 10-15, while pet bottles costing from Rs 20-45. The soft drink industry has an annual sale exceeds to about 800 cores and most of the bottling company have been flourishing.

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Since the last decade all the soft drink companies have grown and expanded their particular brand in the market for better consumer services.

According to IMRB retails tracking study share of bottle soft drink market in May 2003, Pepsi brands have 47.6%, Coca-Cola brands have 49.5% and others have 2.9%.

Share of Cola Segment

Share Segment

of

Orange Share Segment

of

Lemon

Pepsi 48.7% Coke 27.1% Thums up 23.1% Campa Cola 1.1%

Mirinda Orange54% Fanta 44% Gold Spot 2% -

Limca 74% Mirinda Lemon 26% -

The capacity of present India soft drink market is around 150 million cases. The per capita consumption in India is 6 bottles per annum.

COMPLEXCITIES IN THE SOFT DRINK MARKET The soft drink business in among the most complicated because of following reasons: 1. At the most basic level, it is a two way business in way that when a consumers buys a cigarette or soap, that
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ends the marketing story, where the soft drink bottles have to be collected back. 2. It is a seasonal product and sells strongly just for six months. 3. Value edition is done by retailer by way of chilling the bottle 4. It is impulse by consumer loyalty is uncertain.

INDUSTRY TO THE COMPANY

Pharmacist Calerb D.Bradham invented Pepsi Cola in 1893. Pepsi is a U.S $ 28 billion company with headquarters in New York.

PEPSI CO. WORLD WIDE OPERATIONS Pepsi Co operates on a global basis. 170 + countries with an employ force of 338000. Pepsi Co. is the third largest company in the U.S and amongst the 15th largest in the world.

U.S fortune 50 rank in their companies annual revenue at $28 billion and world wide operations more than 150 countries with annual profit of $ 2.5 billion.

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PEPSI COS OPERATING COMPANIES ARE

1. PEPSI Cola North America. 2. PEPSI Cola International. 3. PEPSI Co Wine Sprits. 4. PEPSI Co foods International. 5. Fritolay. 6. Pizza Hut 7. Kentucky Fried Chicken. 8. Taco Bell.

Having the $ 28 billion+ annual sales.

PEPSI : THE PAST AND THE PRESENT

In the Century since James Henry king, first gave his nod of approval millions of people all over the world have enjoyed the great taste of Pepsi-cola today, Pepsi Cola is sold is more then 170 countries and accounts for about one quarter of the worlds soft drink. More the 70% of Pepsis sales are from North America, where it enjoyed strong growth and increased volume.

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Our

well-known brands include Pepsi, Diet Pepsi, Pepsi

One, Mountain Drew, Mug, All sport, Lipton Brisk and Aquafina. In addition, salty snacks and juices are staples of out sister divisions, Frito-lay and Tropicana. One of the biggest factors in long-term success of consumers Products Company is whether more people fall in love with your products. Each year Pepsi-cola account for nearly one third of total soft drink sales in the US, a consumer market totaling about 454 billion .in 11992 Pepsi Cola formed a partnership with Thomas J.Lipton Co. today Lipton is the biggest selling ready-to-drink tea brand in the united states.

Outside the United States, Pepsi-Cola companys soft drink operations include the business of 7-up international. Pepsi-Cola began its selling its products internationally in 1934 with is operations in Canada. Operations grew rapidly beginning in the 1950s. Today Pepsi-Cola products account to brands about A quarter of all soft drink sold internationally. In addition to brands about marketed in the United States, major products include Mirinda and Pepsi Max, Saudi Arabia, Spain, Thailand, United Kingdom. The company has also established operations in the emerging markets of the Hungary, India, Poland, Slovskis and Russia, where Pepsi-Cola was the first US consumer product

- 10 -

to be marketed. Pepsi-Cola provides advertising, marketing, sales, and promotional, support to Pepsi-Cola bottlers and food service customers. This include some of the worlds best loved and must recognized advertising. New Advertising and exciting promotions keep Pepsi-Cola brands young. The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers. The company also provides fountain beverage products.

PEPSI CO. MISSION STATEMENT Pepsi Co overall mission is to increase the value of our shareholders investment. We do this through sales growth, cost control and wise investment of resources. We believe our commercial success depends up on offering quality and value to our customers and environmentally sound, and providing a fair return to out investors while adhering to the highest standrards of integrity.

THE PEPSI POWER: The year was 1993,and the real thing was about to stage a come back in the Indian market after a16 year absence. At Pepsi Foods headquarters in Mohan Deo Building in New Delhi, the hearts of Pepsis top brass were knocking furiously at their Ribs. An internal market research report by Pepsi had shown that if Coke
- 11 -

were to be made to be available in the country more than 70% of Pepsis customers would shift to four years of an indifferent presence, after which it had barely begun to establish itself in the India bottled soft drink market.

The going gotten tough many a time, but the tough had been on the roll. Eight years have passed by Pepsi still exists, with its head high. Ron Coughlin .VP, International marketing, Pepsi-Cola says the India marketing Team is the Pepsi world Its been blood, toil, tears and sweat of all stake holders, Pepsi executives, bottlers, ad agency, Hindustan Thompson Associates and Yes, Sachin Tendulker and Shahrukh Khan and, yeh dil still maange more

Ever since Pepsi uncorked its fizz- are you ready for the magic? It did in styles .it was grand unveiling, much like the icon Pepsi used back in 1932, to discover what brand stood for. The icon never played cricket, it never got its hair burnt like Michael Jackson, it never dated post spice like David Beckham .. Pepsi and P, the Pepsi cops. It was Pepsi, which was first to introduce a marketing jungle, the first to foray into musical marketing. So what they did way back then is still paying off.

- 12 -

The Cokes second coming changed the attitude pf Pepsi towards the way it looked of the entire marketing battle and its own existence in India. It became competitive; it started to believe in direct attack. While coke may have found it difficult to find a common theme that ran through all its advertising, it got aggressive in India with its take over of parle brands ThumsUp, Gold Spot and Limca. Another big blow, another time: Pepsi lost out in its bid for the rights to the cricket world cup 1996.What followed is history; the high decibel, out-of-the box advertising by Pepsi- nothing official about it

The real growth for both Pepsi and Coke can come from increasing the market. Though the battles over market share continue to rage and Hrithik Roshan and Shahrukh Khan will fight it out, the future will belong to the one that has its eye on per capita consumption. Itll obviously be market growth over market share.

Looking at the different strategies adopted by both these companies one can that Pepsi has adopted challenged strategy to counter its competitor the Coke. Whatever the outcome of the clash between the soft drink giants. There is no doubt that both Pepsi, that has declared bankruptcy twice in the past, and coke, that
- 13 -

launched as a caramel colored syrup in 1886.Will spring many more surprises on the Indian consumer leaving him wondering whether his cola is the Right Choice or whether its the real thing?

- 14 -

PROFILE OF HYDERABAD BEVERAGES PVT .LTD

Pepsi mostly supplies its products through franchises. It has tieups with the local bottling companies.

Hyderabad beverages Pvt .Ltd, is an operating franchises for Pepsi foods India Limited since 1991, when Pepsi was launched in Hyderabad on 7th march 1991.It undertakes the bottling and distribution functions for the company. Mr. S.K. Jaipuria, chairman, heads Hyderabad Beverages Pvt. Ltd.

Hyderabad Beverages Pvt. Ltd under takes production operations such as Bottling of soft drinks. They have their own products units. Hyderabad Beverages Pvt. Ltd, is also responsible for local advertising and other promotional activities .The day to day administrative activities is also carried out on an independent basis, sales, marketing, and distribution of the product depends on the sole discretion of Hyderabad Beverages Pvt Ltd.

Hyderabad Beverages Pvt Ltd. uses the indirect market channel. It supplies its products through various outlets by the

- 15 -

retail system. It adopts 3-way market distribution for supply of brands.

Market distribution of various brands of Hyderabad Beverages Pvt. Ltd., 1. City market 2. Up country markets [districts] 3. Credit outlets

Hyderabad Beverages Pvt. Ltd. uses almost the same type of distribution channels in the various market with slight variations in the mode of transportation etc. The distribution channels for various markets can be outlined thus

1. Distribution Channels for city market: Factory carrying forward agents- Dealer or distributor-retailer-consumer

2. Distribution channels for the country market: Factory-Carrying forward agents-Local distributionRetailers-consumer.

3. Distribution channels for credit outlets:

- 16 -

Factory-outlets-consumers

ORGANISATION PROFILE OF PEPSI:

Pepsi Company Inc., Limited was launched over a hundred years ago, in the US, though it entered the international market with a move to Russia only in 1959.

Today Pepsi is one of the largest Multinational companies with a turnover of 22 billion dollars of allots business worldwide. Pepsi Co Inc., Limited owns Pepsi foods.

Pepsi foods entered the Indian Market in 1990s is a joint venture with Voltas and Punjab Agro. In1992-1993 the total investment in India Organics Ltd., Pepsi has introduced Rs 75 crores for pet bottles.

The head quarters of Pepsi foods is situated in down town Delhi, since Pepsis market reach is small, the company plans to bridge this gap quickly by adding its own bottling plants an at the same time increasing the capacities of the existing plants.

- 17 -

The company plans have 4 company-managed operations at Mumbai, Kolkata, Chennai, and Ahmedabad. It has bottling facilities (both owned & franchised) located in various parts of the country. The company intends to spend RS. 900 crores or more in lieu of its plans to increase its market share.

The company has three business divisions. Beverages Exports Foods

Pepsi foods Ltd., has its concentrate, Snacks, fruits processing facilities in the Punjab state, Pepsi claims to be The worlds favorite salty snacks company always providing great value to consumers.

- 18 -

AN OVERVIEW OF CONSUMER BUYING BEHAVIOR

Consumer buying behavior refers to the buying behavior of the final consumer, individuals and households and who buy the goods and services for personal consumption.

The consumers for the selection of the soft drink either go for brand loyalty or they choose a brand based on retailers advice. There are few buyers who buy in bulk for parties. In this way the individual might be trying to choose or cater to his perception of his guests preference. A brand can convey up to six levels of meanings

1. Attributes 2. Benefits 3. Values 4. Culture 5. Personality 6. User

Consumer is the heart of any marketing agency, hence marketers are now spending money on consumers research that
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includes the study of what they buy, when they buy, how often they buy, and how often the consume or use it.

A MODEL OF BUYING BEHAVIOR: A consumers decision to purchase a particular product or service is the result of complex interplay of variables. Marketing and environmental stimuli enter the buyers consciousness. The buyers characteristics task decision process leads to certain purchase decisions. The marketers task is to understand what happens in the buyers black box or consciousness between the arrival of outside stimuli and the buyers purchase decision (buyers black box model). They must answer two questions-

1. How do the buyers characteristic- cultural, social, personal, psychological influence buying behavior?

2. How does the buyer make purchasing decision?

Marketing Stimuli Product Price Place

Promotion

Other Stimuli Economic

Technological

Political Cultural

- 20 -

Buyers Black Box Buyer Buyer Charact- Decision eristics process Buyers Response Product choice Brand choice Dealer choice Purchase timing
Purchase amount

CHARACTERISTICS BEHAVIOR:

AFEECTING

THE

CONSUMER

Consumer behavior is affected by a host of variables ranging from personal motivations, needs attitudes & values, personality characteristics, socio-economic and cultural backgrounds, age, sex, professional status to social influences of various kinds exerted by family friends, colleagues and society as a whole. The combinations of these various factors produce a different impact on each one of us manifested in our different behavior as consumers. Psychological factors such as individual consumer needs and motivations, perceptions, attitudes, the learning process and personality characteristics are the similarities, which operate
- 21 -

across the different types of people and influence their behavior. Among the social influences affecting behavior we can classify the influences of family friends, leaders and social class to which the consumer belongs.

MODEL OF FACTORS INFLUENCING CONSUMER BEHAVIOUR B

CULTURAL

U
SOCIAL

Culture Sub-Culture Social Class

Y
PERSONAL

Reference groups Family Roles & Status

E
PSYCHOLOGICAL

Personality Age & Life cycle stages Occupation Income Lifestyle

R C H A R A

Motivation Perception Learning Beliefs & Attitudes

A. CULTURAL FACTORS: These exert broadcast and influence on consumer behavior.

- 22 -

1. Culture: The set of basic values, perception, wants and behavior learned by a member of society from family and other important institutions. Markets should always try to spot cultural shifts in order to discover new products that might be wanted.

2. Subculture: Each culture contains small subculture i.e., group of people with shared value system based on common life experiences and situations. Ex: Nationalities Indian, Italian, American, and European.

Religion Hinduism, Jainism, Christianity, Islam.

3. Social Class: These are relatively homogenous and enduring division in a society which are hierarchically ordered and whose members share similar values, interests and behavior such as upper, middle and lower class.

- 23 -

B. SOCIAL FACTORS: A consumers behavior is also influence by social factors like reference groups, family, roles & status.

1. Reference Groups: A persons reference group consists of all the groups that have a direct or an indirect influence on the persons attitude or behavior. These include primary group, secondary group, aspirational group, dissociative group and opinion leaders. The importance of reference group influence varies across products and brands.

2. Family: Family members constitute the most influential primary reference groups shaping up buyers behavior. a. Family of orientation consists of ones parents. b. Family of procreation consists of ones spouse and children.

3. Roles & Status: A role consists of activities that a person is expected to perform according to the persons around him or her. Each role carries a status reflecting the general esteem given to it by the society. People

- 24 -

choose products that communicate their role and status in society.

C. PERSONAL FACTORS: Consumers purchase decisions are also affected by his personal characteristics such as age, sex, and stage in family life cycle, his overall self-concept.

1. Age & Life Cycle Stage: People buy different goods & services over their lifetime. Marketers often define markets in terms of the life cycle stage.

2. Occupation: A persons consumption pattern is influenced by his/her occupation whether it include blue-collar workers and white-collar workers.

3. Income: Borrowing power, attitude towards spending verses saving, personal income determines the

purchasing motive of the customer.

4. Life Style: A persons pattern of living as expressed by his activities, interests and opinions influence consumer behavior.

- 25 -

5. Personality & Self Concept: By personality and selfconcept, we mean the persons distinguishing

psychological foundations that lead to relatively consistent and responses to his or her environment.

D. PSYCHOLOGICAL FACTORS: A persons buying choices are also influenced by four major psychological factors motivation, perception, learning, beliefs & attitudes.

1. Motivation: A person has many needs at any given time. Some needs are biogenic and others are psychogenic. These needs are useful for the marketer to identify what generic level needs; his product is capable of fulfilling and accordingly positions his product and backs it up with relevant marketing inputs.

2. Perception: Perception is the process by which an individual selects, organizes and interprets information inputs to create a meaningful picture of the world. There are three aspects of perception selective exposure, selective distortion, and selective retention.

- 26 -

3. Learning: When people act, they learn. Learning describes changes in an individuals behavior arising from experience.

4. Beliefs and Attitudes: Through acting and learning acquit their beliefs and attitudes that is a descriptive thought that an individual has about a product, service, idea or practice is belief and enduring and learning to act in a particular consistent way with regard to a given object or idea is attitude.

CONSUMER DECISION PROCESS A decision is the selection of an action from two or more choices. There are five stages in buyers decision process-

1. Problem Recognition: The consumer buying process starts when the buyer recognizes a problem or need. The buyer senses a difference between his existing state and his actual state desired. The need can be triggered by internal stimuli like hunger, thirst or external stimuli like advertisement.

2. Information Search: An aroused consumer will be inclined to search for more information
- 27 -

through

personal,

commercial, public or experiential sources. Through gathering information the consumer learns about competing brands and their features. Competing brands and their features. A company must strategies to get its brand into consumers choice set.

3. Evaluation of Alternatives: Consumer evaluates product judgments based on conscious and rational basis. The consumer develops brand beliefs about where each brands stands on each attribute i.e., brand image.

4. Purchase Decision: In the evaluation stage, the consumer forms preferences among the brands in the choice set. The consumer may also form an intention to buy the most preferred intention and purchase decision a) Attitude of others. b) Unanticipated situational factors.

5. Post purchase Satisfaction Or Cognitive Dissonance: After purchasing the product, the consumer will experience some level of satisfaction or dissatisfaction. The marketers job doesnt end when the product is bought but continues into the post purchase actions, post purchase product use and

- 28 -

disposal. A dissatisfied consumer may either take public or private action.

MODEL OF BUYER DECISION PROCESS

Problem Recognition

Information search

Evaluation of alternatives

Attitudes of others Purchase Decision Purchase intention

Unexpected situational factors

Post purchase Behavior

- 29 -

OBJECTIVE OF THE STUDY

The study has been conducted in twin cites and the respondents chosen randomly. The sample size has been limited to 100, which may restrict the scope and complexity of the study. The scope of the project could be broadened if the project duration is extended and the team strength be raised. The primary objective of the report is to study the attributes, which a consumer considers important while taking decision to purchaser soft drink.

1. To find out the relative position of various brands in market. 2. To find out the top of the mind awareness level of soft drink among consumers. 3. To find out the medium which is most effective in reaching the consumers. 4. To find out the most popular point of purchase. 5. To identify the age group which consume the soft drink more. 6. To know what are the factors, which influence towards brand choice. 7. To identify the factors influencing the consumption pattern.

- 30 -

RESEARCH METHODOLOGY
RESEARCH DESIGN It involves survey of consumers, understanding the market and changing trends by Data Survey

DATA SOURCE The primary data was collected from the consumers and secondary data through various mediums.

RESEARCH

INSTRUMENT

The

research

instrument used was a questionnaire backed by personal interview for data collection.

SAMPLE SIZE 100 for consumers.

SAMPLE AREA Sample size of 100 members comprised of and different areas of twin cities.

SAMPLING judgmental.

METHOD

Convenience

and

- 31 -

LIMITATIONS
The survey was conducted in twin cities only, so the data collected can be generalized.

The survey was conducted in starting of summer, due to which consumption of soft drink was influenced. So there was a seasonal constraint.

The consumers/customers sample size is 100 (male-60 and female-40), because of time and financial constraints. Hence the data may not be representation on the entire population.

Even though every care is taken to formulate the questionnaire, some errors may have been crept in.

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ANALYSIS & INTERPRETATION

1. AWARENESS OF BRANDS:

BRANDS PEPSI THUMS UP COKE MIRINDA MAAZA 7 UP SPRITE TOTAL

MALE 18 22 7 4 5 2 2 60

FEMALE 12 15 3 2 5 2 1 40

AWARENESS OF BRANDS S O F SPRITE T

MAAZA

D R I COKE N K PEPSI S
0 5 10 15 20 25

FEMALE MALE

NO. OF RESPONDENTS

- 33 -

A high percentage of all brand awareness has been noticed and few consumers were unaware of less popular brands.

2. MOST CONSUMED BRAND BRANDS PEPSI THUMS UP COKE MIRINDA MAAZA 7 UP SPRITE MALE 16 26 7 1 2 3 FEMALE 7 11 6 2 7 2

POSITION OF DIFFERENT BRANDS

N O . O F R E S P O N D E N T

30 25 20 15 10 5 0 PEPSI COKE MAAZA SPRITE MALE FEMALE

BRANDS
- 34 -

THUMS UP has been the favorite brand both among the consumers of either sex, followed by PEPSI.

3. FACTORS INFLUENCING PURCHASE DECISION:

Attributes AVAILABILITY PRICE TASTE

MALE 5 3 39

FEMALE 4 3 27 3 4

ADVERTISEMENT 3 FLAVOUR 9

PURCHASE INFLUENCING FACTORS

15% 5% 8% 5% AVALIABILITY PRICE TASTE ADVERTISEMENT FLAVOUR

67%

The attributes accorded the highest priority are taste with 67% and flavor & availability followed recording 15% & 8% respectively.

- 35 -

4. BRAND PREFERENCES:

Ratings EXCLEMENT VERY GOOD GOOD

MALE 15 17 28

FEMALE 14 17 9

RATING OF PREFFERED BRAND

25% 47% EXCELLENT VERY GOOD GOOD 28%

Most consumers have rated their preferred brand good but not very good (or) excellent.

- 36 -

5. FREQUENCY OF CONSUMPTION:

Frequency Consumption DAILY THRICE A WEEK WEEKLY OCCASIONALLY SEASONALLY

of MALE FEMALE

12 15 12 14 6

3 8 13 13 4

FREQUENCY OF CONSUMING
10% 23% 22% DAILY THRICE A WEEK WEEKLY 20% 25% OCCASIONALLY SEASONALLY

Occasional consumption frequency has been found to be on a high note. A transition has been identified in their frequency of consumption from being consumed seasonally to being consumed weekly.

- 37 -

6. BRAND SWITCHING:

Brand Switching YES NO

MALE FEMALE 34 27 24 15

Reasons

MALE FEMALE 8

Due to non-availability of regular 10 brand Due to non-availability of chilled 6 drink For tasting different flavor Influenced by friends Other reasons 15 3 -

11 3 -

- 38 -

SHIFTING OF BRANDS
N U M B E R O F R E S P O N D E N T

35 30 25 20 YES 15 10 5 0 MALE FEMALE NO

GENDER

Brand switching have been identified and the primary reason has been the propensity to taste different flavors.

- 39 -

7. PACKING: Packing 200 ml 300 ml 500ml 1 lt 1.5 lt 2 lt TINS TETRA PACK MALE 27 5 3 3 8 3 FEMALE 16 7 2 3 1 2 1 3

FOUNTAIN GLASS 1
TYPE OF PACKAGE % O F R ES P O N D E N T

30 25 20 15 10 5 200 ml 500 ml 1.5 lt FOUNTAIN TINS 0

MALE FEMALE

- 40 -

200 ml is fast moving quantity, 300 ml is loosing popularity.

8. PRICE RATINGS:

Rating HIGH REASONABLE LOW

MALE 24 35 1

FEMALE 14 25 1

40 30 20 10 0 HIGH LOW
RATINGS
NO. OF RESPONDENTS

MALE
MALE FEMALE

Majority consumers have said the price as reasonable and considerable chunk have rated price as being high which is of concern.

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9. EFFECTIVE MEDIUM FOR ADVERTISEMENT:

MEDIUM NEWS PAPER TELEVISION MAGAZINE HOARDINGS POSTERS GLOW BOARDS

MALE 9 43 1 1 2 SIGN 3

FEMALE 4 32 2 2 1

N U M B E R O F R E S P O N D E N T

45 40 35 30 25 20 15 10 5 0 NEWS PAPERS MAGAZINE

MEDIA TYPE

POSTERS

MALE FEMALE

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TELEVISION has been rated the most effective medium with NEWSPAPERS (print media) following up. 10. ADVERTISEMENT APPEAL :

AD APPEAL MODEL/CELEBRITY GOOD SLOGAN IS GOOD THEME IS GOOD SPONSERED GOOD EXECUTION IS GOOD EVENT

MALE IS 12

FEMALE 7

18 16 IS 4

13 12 5

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LIKING ASPECT IN AN AD
15% 7% 20%

27%

31%

MODEL/CELEBRITY IS GOOD SLOGAN IS GOOD THEME IS GOOD SPONSERED EVENT IS GOOD EXECUTION IS GOOD

Good catchy slogan is the most likable Ad appeal, with theme of concept next most appealing.

11.

PHRASE INFLUENCE:

Phrase Influence YES NO

MALE 53 7

FEMALE 36 4

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Brands PEPSI THUMS UP COKE MIRINDA MAAZA 7 UP SPRITE

MALE 19 10 7 4 2 1 10

FEMALE 4 6 8 3 1 4

IMPRESSIVE SLOGANS
60 50 40 30 20 10 0 MALE FEMALE
YES NO

NO. OF RESPONDENTS

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MOST LIKED SLOGANS

[Male Respondents]

10 1 2 4 7
PEPSI THUMS UP COKE MIRINDA

19

10
MAAZA 7 UP SPRITE

MOST LIKED SLOGANS

[Female Respondents]

1 3

4 14

8 6
PEPSI THUMS UP COKE MIRINDA MAAZA 7 UP SPRITE

Present slogans are found to be catchy hence impressive. PEPSI slogan is voted the most effective, THUMS UP & COKE followed respectively.

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SUGGESTIONS
Keeping in view the limitations and findings the following suggestions are put forth. Since taste is the most important criteria the drink can be made palatable to Indian taste by bringing out more effervescent version of price.

More knowledgeable and health conscious consumers didnt consider the drink a good value for money.

Compulsive buying has been found generating negative feelings and is weaving away potentials that are not loyalists.

Diet conscious consumers should be provided low caloric drinks at reasonable cost.

Rusting of crows has been noticed which led to broken edges.

Bottling plant are to be set hygiene standards ensuring the brand image does not suffer any onslaught.

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Instead of tall promises, on the spot gifts is preferred considering Indian culturing.

Frequent

buyers

should

be

recorded

and

rewarded

accordingly.

There has been a demand for umbrellas from retailers, which were not available from the company.

Pepsi clubs should be established in college canteen thus promoting his brand also sponsoring of college fete at various levels would establish the brand among youth, as the habits tend to continue for life.

Ad films are displayed in film shows, as switching problem doesnt arise in theaters.

Inadequate product promotion in case of 7-up has been noticed which could be a good potential.

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CONCLUSIONS
From the findings of the study it can be inferred that the demand for soft drinks is occasional with the maximum sales being in summer. 15-24 age group contributes a large percentage of sales and hence younger generation is the focus of soft drink consumption. Television is the most effective medium followed by newspapers. Taste has been found to be the most important factor influencing purchase decisions High brand awareness has been noticed among consumers. Bakeries have grown to be the popular outlets for soft drink consumption. The companys catchy slogan is the most appealing in ad films.

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 Sales promotion programs of the company are popular among consumers with gifts being the most preferred. The companys brand has been rated low on fuzziness and hence less suitable to south Indian palate accustomed to spices. 300 ml pack is popular among consumers, 500 ml, 2 lt. Disliked. Brand switching is prevalent among majority consumers. Consumers preferred film stars and cricketers endorsing their preferred brand. Retailers were reluctant for exclusive outlets. Retailers rate behavior of companys sales people very good. Retailers abstained from recommending any brand of soft drink to customers.

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APPENDAGES QUESTIONNARIE FOR CUSTOMERS/CONSUMERS

1. Which brands of soft drinks are you aware of? Pepsi [ ] Thums Up [ ] Maaza [ ] 7 UP [] Coke [ ] Mirinda [ ] Sprite [ ] All []

2. Which brand of soft drink you have consumed the most? Pepsi [ ] Thums Up [ ] Maaza [ ] 7 UP [] Coke [ ] Mirinda [ ] Sprite [ ]

3. What attributes and factors influence your purchase of soft drinks? (Order of Preference). Availability [] Price [ ] Flavor [ ] Taste [ ]

Advertisement [ ]

4. How do you rate the preferred brand of soft drink? Excellent [ ] Very Good [ ] Good [ ]

5. How often do you consume soft drinks? Daily [] Thrice a week [ ] Seasonally [] Weekly [ ]

Occasionally [ ]

6. Do you shift from one brand to another brand? Yes [ ] No [ ]

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If Yes, state the reason: a) Due to non-availability of your regular brand [ ] b) Due to non-availability of chilled drink c) For tasting different flavors d) Influenced by friends [] [] []

e) Other Reasons __________________________

7. Which is the package that you prefer most? 200ml [ ] 300ml [ ] 500ml [ ] 1 Litre [ ] 1.5 Litre [ ] 2 Litre [ ] Tins [ ] Tetra Pack [ ] Fountain Glass [ ]

8. How do you rate the present price of soft drinks? High [ ] Reasonable [ ] Low [ ]

9. Rank the media in the order of effectiveness for advertising of soft drinks Newspapers [ ] Television [ ] Hoardings [ ] Posters [] Magazines []

Glow Sign Boards [ ]

10.

What appeals to you in the advertisement of the

preferred brand? Model/Celebrity is good [ ] Theme of concept is good [ ] Slogan is good [ ] Sponsored event is good [ ]

Execution (Photography/still) is good [ ]

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11.

Do you think the present slogans are impressive? Yes [ ] No [ ]

If Yes, which of the following PEPSI COKE THUMS UP MIRINDA SPRITE MAAZA 7 UP Yeh Dil Mange More Aahaa! []

Jo Chahe Ho Jaye Coca Cola Enjoy! [ ] Taste the Thunder Zor Ka Jhatka Dheere Se Lage [] []

Dikhavon pe na jao, apni akal lagao [ ] Taaza Mango, Maaza Mango Cool, Light & Easy [] []

NAME OF RESPONDENT: ________________________ GENDER: Male [ ] Female [ ]

OCCUPATION: ___________ EDUCATION: ___________ INCOME APPROX: ________________________________ ADDRESS: _______________________________________ _______________________________________ _______________________________________ Ph No: Off: _____________ Res: __________________

Please tick your age 10 15 15 - 24 25 - 34 35 & above

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BIBILOGRAPHY

1. Principles of Marketing .Philip Kotler & Gary Armstrong. 2. Marketing Management .V.S. Ramaswamy & S. Namakumari 3. Marketing Research .Tull Donald & Hawkins 4. Consumer Behavior Schiffman Leon & Kanuk Leslie 5. Internet: ..www.pepsico.com ..www.pepsi.com 6. Newspaper: ..The Economic Times

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