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BY NAYAN KUMAR ORAM (Reg. No. -5094) Of VISHWA VISHWANI INSTITUTE OF SYSTEM AND MANAGEMENT
Under the Guidance of Prof. Sasmita Misra
A PROJECT REPORT Submitted to the FACCULTY OF BUSINESS MANAGEMENT In partial fulfillment of the requirements For the award of the
POST GRADUATE DIPLOMA IN MANAGEMENT July 2010
I Nayan Kumar Oram, hereby declare that this project titled “Consumer and Retailer perception towards energy drink” is an original work carried out by me, under the guidance of Prof. Sasmita The report submitted by me is a bonafide work carried by me of my own efforts and it has not been submitted to any other University or published any time before.
Signature of the Student (Nayan Kumar Oram)
CERTIFICATE Certified that the project titled “Consumers and Retailers Perception towards Energy Drink” is the bonafide work of “Nayan Kumar Oram”, who carried out the research under my supervision, certified further, that to the best of my knowledge the work reported here does not form part of any other thesis or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.
Signature of the Faculty Guide (Faculty Guide Name) Date: Place:
ACKNOWLEDGEMENT With immense pleasure, I would like to present this project report for XXX Energy drinks, GT&T India Pvt Ltd.It has been an enriching experience for me to undergo my summer training at GT&T, which would not have possible without the goodwill and support of the people around. As a student of Vishwa Vishwani institute of system and management I would like to express my sincere thanks to all those who helped me during my practical training program.
Words are insufficient to express my gratitude toward Mr. Gourav Shah, the Business Development Manager of XXX energy, Hyderabad,Imran Sidiqquee Project Guide and Prof. Sasmita Misra Faculty Guide.
My heartfelt thanks go to all who helped me to gain knowledge about the actual working and the processes involved in various departments.
However, I accept the sole responsibility for any possible error of omission and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice.
CONTENTS Chapter Particular Page no
Introduction Objectives Need for the study Scope & Limitations
8 9 9 10
Industry Overview Company Overview Literature Overview
16 21 28
Finding, Recommendations & Conclusion Annexure Questionnaire Bibliography
Introduction Objective Need For the Study Scope and Limitation INTRODUCTION
Every individual has his or her own perception of different situations. Again two individuals may not have the same perception about a similar situation. People also tend to believe what they perceive to be true irrespective of the objective truth. Perception thus is a major driving force in shaping the behavior of a person. Therefore, perception forms an important part of the study of organization behavior.
Perception is essentially Cognition. We cannot perceive without perceiving something. Thus perception essentially involves that reference to an object which we disregarded in treating of sensation. But perceiving is a special mode of cognition; it is that special mode which immediately depends on the actual presence of an object to the senses. It may in fact be defined as the cognitive function of sensation. It is contrasted with that mode of cognition which takes place through ideal images. Such images are not dependent on the actual presence of an object to the senses. They are representations of absent objects which have already been perceived. Thus the existence of perception is a precondition of the existence of ideal images
Even in the direct cognition of present objects, association and reproduction play a very important part. But in perception, taken in the strictest sense of the word, only those forms of association and reproduction enter which we have called complication and acquirement of meaning, together with that peculiar mode of free reproduction by which general states of nervous and mental excitement and their concomitant organic sensations are revived.
To find out the average no of customers in various demographic
segmentation taking energy drinks.
The main objective is consumer perception towards SJ XXX energy
My third objective is found out the retailer perception towards SJ XXX
To understand the marketing strategy of energy drinks in the twin city
Hyderabad and Secunderbad to efforts their product.
Need for the study:
To understand the marketing strategy of energy drinks and try to
position the new industry of energy drinks.
For the company it is important because they can use different
marketing strategy and apply them to market for future growth of company.
This study would provide the primary cause for the low market share
of SJ XXX energy drinks in the city like Hyderabad.
Scope of the study:
This study will provide us data and information about XXX energy
drinks and its competitor’s position in the market and this will help us to analyze the market potential and consumer needs.
For the company, Hyderabad is a big market with large no. of potential
customers the company has enormous scope to capture the maximum market share.
We have to visit more than 200 retailers, 100 customers and approach
them about energy energy drinks.
This project is limited to the region of Hyderabad and Secunderabad in
Local people were not very comfortable with other languages. We were not assigned to get any orders without consulting the area
Research Methodology RESEARCH METHODOLOGY Research Methodology: The research include meeting with the retailers and consumers. It included preparation of the questionnaire to be answered by the people. Objective of the research: The main objective of the research was to determine the impact of sale and promotion offer on the buying behavior of the consumer of energy drinks. Information based on previous information is research.
Research is the search or find out new information based on previous
Research is a scientific and systematic search for pertinent information
on a specific topic.
Research is a careful investigation or inquiry especially through search
for new facts in any branch of knowledge.
Research comprises defining and redefining problems, formulating
hypothesis or suggested solutions: collecting, organizing and evaluating data; making deductions and reaching conclusions; and last carefully testing the conclusions to determine whether they fit the formulating hypothesis.
Research design: A research design is the determination and statement of the general research approach or Strategy adopted for the particular project. The study used an exploratory research design and was conducted for the period 10th MAY To 20th JUNE 2009.
Sample size The number of sample is 226 for retailer and 118 consumers from twin city Hyderabad and Secunderabad.
Sampling design Convenience sampling is used for this study. 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. This non probability method is often used during preliminary research efforts to get a gross estimate of the results, without incurring the cost or time required to select a random sample. Types of data collection based on aim and study: There are mainly two types of data: 1) Primary data collection:
The primary data are those which are collected afresh and for the first time, and thus happen to be original in character. I prepare the questionnaire and collect the primary data. 2) Secondary data collection: The secondary data are those which already have been published earlier in Journal or Paper or Thesis or Books or Report, newspaper etc i.e. any form of publication. Major data collection procedure:
Interview Questionnaire survey
Method varies from person to person. It depends on our aim and
Based on some selective question. Ask a particular person about a
We get both positive and negative data. We should be a trained person and also have the idea about the
locality. Personal interviews:
Personal interview method requires a person known as the interviewer asking questions generally in a face-to-face contact to the other person or persons.
It is done by based on some selected question.
This sort of interview may be in the form of direct personal investigation or it may be indirect oral investigation.
2) Questionnaire survey: This method of data collection is quite popular, particularly in case of big enquiries. It is being adopted by private individuals, research workers, private and public organizations and even by governments. - By developing some question based on our objective step by step.
Industry Overview Company Overview Literature Overview INDUSTRY OVERVIEW Energy drinks are beverages which contain legal stimulants, vitamins, and minerals, including caffeine, guarana, and taurine, various forms of ginseng, maltodextrin, carnitine, creatine, and ginkgo biloba. Some may contain high levels of sugar or glucose. It may well have come from Scotland in the form of Irn-Bru, first produced in the form of "Iron Brew" in 1901. In Japan, the energy drink phenomenon dates at least as far back as the early 1960s, with the release of the Lipovitan. Most such products in Japan bear little resemblance to soft drinks, and are sold instead in small brown glass medicine bottles or cans styled to resemble such containers. These "genki drinks", which are also produced in South Korea, are marketed primarily to the salaryman set, to help them work long hours, or to stay awake on the late commute home.
In UK, Lucozade Energy was originally introduced in 1929 as a hospital drink for "aiding the recovery;" in the early 1980s, it was promoted as an energy drink for "replenishing lost energy." In 1995, PepsiCo launched Josta, the first energy drink introduced by a major US beverage company.
In Europe, energy drinks were pioneered by Dietrich Mateschitz, an Austrian entrepreneur who developed Red Bull based on the Thai drink Krating Daeng, itself based on Lipovitan. Red Bull was introduced to the US in 1997 and is the dominant brand there, with a market share of approximately 47%. By the year 2001, the US energy drink market had grown to nearly 8 million per year in retail sales. Over the last 5 years, it grew an average of over 50% per year, totaling over $3 billion in 2005. Diet energy drinks are growing at nearly twice that rate within the category, as are 16-ounce sized energy drinks. It is estimated to hit nearly 4 billion in 2006, and both Goldman Sachs and Mintel predict that the energy drink market will hit $10 billion by 2010. Major players such as Pepsi, Coca-Cola, Molson, and Labatt have tried to match the small companies' innovative and different approach, with marginal success. Energy drinks have also become popular as mixers. Many malt beverages such as Sparks, 3sum and Max capitalized on the effects of caffeine while drinking alcohol. Globally it is estimated to be a $ 9-billion segment, which is expected to become $14 billion by 2012.
Today there are many international brands doing business in different countries which includes brands like RockStar, Red Bull, Burn, Monster, Full Throtle, Nos, Battery, Sting, Rage, SJ XXX, RipIt, BooKoo, Crunk, Hype, Blast, Lightning Bolt, Hooah!, Xenergy, Duff, QF, Tiger, Von Dutch, Race, Tab, MG Puma, Shark, SoBe, Pussy, XL, Cloud 9, Power Horse, etc.
Energy drink industry in India is growing with very convincing speed. It can be said that the foundation pillars of this industry was put forth by Red Bull. It entered the Indian market sometimes back in the year 2003 and since then the energy drink market took its way. Energy drink market was of Rs.100 Cr. till 2005 but it gained acceleration from then on and the energy drink market in India is growing rapidly above 50%. It estimated that the metros are populated by young, trend setting adults which are also the largest energy drink consuming markets in India. Today it has a market potential of Rs.500 Cr. + in India. The energy drinks market in India is expected to double in size till the end of 2010 as a host national and international players venture into the segment. The market for such drinks is expected to double in size to Rs.1,000 Cr. from Rs.500 Cr. presently. Energy drinks in India till a year back were dominated by players such as Rhino’s, Bullet, Cloud 9 and Red Bull among others has suddenly spruced. Sales, however, started picking up post the entry of established players such as Pepsi, Amway and the latest entry of Coca Cola & GT&T in this segment has shown the market potential of the Energy Drink segment.
Pepsi has been marketing its energy drink So Be since November 2008, while Amway XL has been around since September 2009, Red Bull and Power Horse, who have been around for some years now, perhaps were the only existing players to be marketing such products aggressively. It is believed that the fun drinks such as colas segment has declined by 5% since 2007. “With the positive changes in the perception of health and fitness in India, the industry foresees a huge potential for supplementary drinks like the Energy Drinks. Amway sells health drinks under the Amway XL label which comes in 2 flavors Citrus Blast and Tropical Blast, priced at Rs.450 for a pack of 6. The energy drink segment is the fastest growing segment in the ready to drink category. The reason being that India has a youth centric population and we are urbanising very fast. Players are taking to unique marketing strategies to expand the market for energy drinks in India. Red Bull, for instance, started free sampling at schools and colleges before launching their product. Even after the launch, the free sampling continues to enhance brand recall. They do free sampling at colleges. There are many companies who entered into this energy drink segment after Red Bull. Some of them are Power Horse, Burn (Coca Cola), Cloud 9, SJ XXX (JMJ launched this year). Among these brands Red Bull holds the market share of about 83%, followed by Power Horse with 9%, Cloud 9 and RockStar with 3.2% and 3% and the rest by other brands including SJ XXX, Burn, So Be, etc.
SJ XXX Energy is a sensational product by the renowned JMJ group, marketed by GT&T (a part of JMJ group). It is a global brand manufactured in Dubai. It has been a successful brand since it’s inception in Middle East. So they decided to launch it in Indian market, which is a huge potential market. JMJ Group founded by Jagadish M. Joshi, has core business strengths in perfumery blending and manufacturing of herbal extracts. Started its business in the tobacco sector with brand name Goa Panmasala. Their product is the well known brand Goa Gutkha. It is the leading brand in this segment of gutkha. Goa gutkha is marketed in several countries including Middle East, Africa, South Asia, etc. JMJ Group in the new millennium wanted expansion in their product and manufacturing variables. Therefore they decided to enter in variety of manufacturing and other sectors. JMJ Group is Rs.1000 Cr. group with 29 business entities engaged in diversified activities, ranging from Manufacturing:
The JMJ Group manufactures ‘Attar Hina’, and a range of herbal extracts, which has export market, and has packaging product manufacturing facilities at Silvassa.
Trading : JMJ Industries (Nepal) is a joint venture forged between JMJ (India) and Shanker Group to produce and market its premium quality pan masala for the region of Nepal and some parts of India. At present Goa, of this industry, holds a major share of Nepalese chewing tobacco market. Construction (JMJ Infrastructure (P) Ltd.): UIE is located at Shikarpur, Roorkee about 172 km from Delhi. JMJ Infrastructure (P) Ltd owns the land. The land is notified for industrial use extending all fiscal and other benefits & concessions to eligible industrial units being set up in Uttarakhand. Hotels & Hospitality : The company is building five-star hotels in New Delhi, Jaipur, Dehradun and Hyderabad, three-four star hotels in Pune, Raipur and Udaipur. The company has acquired the required land in all these locations. The total investment for these projects is estimated at around Rs.2,000 Cr. It has raised Rs.125 Cr. through FDI from GT&T of UK that has invested in Asrani Inns and Resorts, which it acquired recently, to focus on hotel business. Leasing & Financing, Technical Services.
They have also entered the potential Retail sector: In the retail sector, the company is already into ‘convenience stores’, with 8 of the typical 300 sq.ft. area stores in Mumbai. Plans are to establish a national chain of such stores, with products that include the company’s own confectioneries and packaged drinking water. Currently the group has launched SJ XXX – Energy Drink in two flavors under the subsidiary GT&T India Pvt. Ltd.’. Goa Technology and Trade (GT&T) headed by Sachin Joshi a young and optimistic entrepreneur from Goa has visioned to capture maximum of the Energy drink market in India and Asia. SJ XXX is a sensational product by the renowned JMJ Group, marketed by GT&T (a subsidiary and part of JMJ Group). It is a brand manufactured in Dubai, UAE. They had decided to launch it in the Indian consumer market which has huge potential customers. XXX will be made available in London and Dubai. The firm has earmarked Rs.20 Cr. for promotional activities and advertising for XXX in India. SJ XXX is a premium brand targeting the niche market of youths and trendy consumers with high income. They entered in India with a bang being a primary sponsor for the Kolkata Knight Riders (KKR) in the DLF IPL T20 cricket tournament. They are also official and
primary sponsor for the prestigious Commonwealth Boxing Championship which is to be held in the forthcoming year hosted by India. The Parx Super Car Show is an ostentatious parade of the most expensive highperformance automobiles in the city. It reflects the passion for premium niche cars by the members of Super Car Club of India. Only the crème de la crème of the society have such cars. The cars are valued at Rs.1crore or more. These fast, powerful cars are all about “Xperiencing Xtreme Xcitement” as one zips past at a speed of 100km p/h in just few seconds. And that’s what XXX energy drink is about. As the Title Sponsor of Parx Super Car Show 2010, the XXX energy drink reflects sheer excitement and pure power unleashing raw energy. The adrenalin rush that one experiences after having a XXX energy drink is the same as driving these super fast cars. Everything about these cars is extreme from power, size, speed to price. They entered in Indian market with a bang being a primary sponsor for Kolkata Knight Riders (KKR) in the DLF IPL T20 cricket tournament. They are also official and primary sponsor for Commonwealth Boxing Championship which is to be held in the forthcoming year. It is being launched with the objective of providing an alternative energy drink to the consumer and hence giving him a winder extremely high on energy and high on life. The brand XXX energy comes in two variants currently- REJUVE and NICOFIX. The USP of “NICOFIX" is that it is formulated with NPR which reduces the Nicotine urge and “REJUVE" is an exciting energy drink specially formulated to suit Indian
taste buds." REJUVE” rejuvenates your mind and body and enhances your immunity, thus increasing your stamina. Both the cans are very competitively priced at Rs.75/- for 250 ml. These exciting products come from Goa Trade and Technology India Pvt. Ltd. (GT&T a part of JMJ Group) which is a Rs.1000 Cr. company and are a strong reflection of the passion of its young Vice Chairperson, Sachin Joshi. Over five years of meticulous research coupled with the dynamism and sheer enthusiasm of Sachin Joshi has given birth to SJ XXX- the energy drink for the new generation. About Us GT & T India Pvt Ltd: We are a young go getter company with an unstoppable force. A force that is aggressively paving the way with zest and vigour. A force that reflects the spirit of dynamism and growth. At GT & T we are driven by one single passion – the passion to excel through quality. We are known for our strategic thinking and innovative vision. Our foray into the beverage sector in the FMCG sector has made waves across the Indian market. On December 23rd 2009, GT & T launched XXX Energy Drink at Grand Hyatt. It was a much talked about event. It was an exciting moment that captured the 3 XXXs i.e Xperience Xtreme Xcitement, which is also the mantra of our company at GT &T. The management Sachin Joshi: XXX energy drink is the brainchild of a young, enthusiastic and aggressive entrepreneur - Mr. Sachin Joshi. It was his sharp business acumen
combined with creative ideas that led to the success of XXX energy drink brand within a short span of time. In a niche segment At GT & T, we believe in recruiting high caliber professionals who are committed to performance and are result-oriented. They come with a wealth of knowledge, experience and expertise and combine strategic thinking and market analysis to achieve the best. A team of young and enthusiastic professionals go out of their way to work together shoulder to shoulder and churn out ideas that work. SWOT analysis Strength: a. Well reputation of the marketing group, b. Growing market potential, c. d. Launch success in Mumbai & Goa, XXX is seen as the young and trend setting brand in Mumbai and Goa followed by Other major cities, e. Attractive design and name, f. XXX ties up with Café Coffee Day across India. g. Brand endorsed by Bollywood King Sharukh Khan, Neha Dhupia and Kolkata Knight Riders, h. Span of Control and Hierarchy. Weakness:
a. Full concentration in Mumbai & Goa market and not realizing the potential of
Hyderabad, b. Low investment in AP market, c. d. e. f. Low investment in advertisement, Not very attractive schemes Very less awareness of the product among energy drinks consumers, Huge market share gap compared to existing market leaders,
Opportunities: a. XXX-Nicofix can be a good option for reducing tobacco craze especially in India, b. XXX-Rejuve can be a good option for consumers who takes care about their immune system, c. Primary sponsorship to Kolkata Knight Riders and Commonwealth Boxing Championship, d. Entry of global players in Indian retail industry, thus increasing the retail outlets, e. Due to very hot climate during summer XXX can be well positioned in the market.
Threat: a. Well established competitors like Red Bull, Power Horse, Cloud 9,
etc. in Hyderabad, b. c. d. More consumer demand for competitor’s product, More awareness and demand for Soft drinks than Energy drinks, Health drinks (such as Glucon-D, Amul Energy, Fruit juices, etc.).
Meaning and Significance of Perception: Perception is a cognitive process where in an individual collects, organizes, and interprets data from the environment to obtain a meaning from it. In fact, perception differs from person to person for the same situation. Each person interprets the data in their own way and may come up with different meanings. For instance, when the boss comes to each employee’s desk, one employee might think that he/she is trying to be friendly with the employees; another might think that the boss is keeping an eye on the employees. It is also possible that people’s perception of events or situations is nowhere close to reality. People react to situations based upon their perception of reality rather than the reality itself. Therefore, understanding the variations in the
perceptions of individuals will help in understanding their organizational behavior better. Sensation vs. Perception: Often confusion arises over the relationship between sensation and perception. Behavioral theorists believe that individuals interpret situations based upon their senses and stimulation and that this was how they gained knowledge of the world. Individuals use their sensory organs to sense – for instance, eyes to see, ears to hear, skin to feel, nose to smell, and tongue to taste. Therefore, sensation is the basic behavior of individuals caused by their physiological functions. Perception, on the other hand, involves people’s assimilation of raw data through their senses, after which they organize and modify the data with the help of cognitive thinking to form a coherent picture of the situation. External Attention Factors: The external attention factors are: Intensity According to this principle, the intensity of the external stimulus decides the probability of its being perceived. For instance, a bright light is more likely to be noticed than a dim one. Size According to this principle, a large object is more likely to be noticed than a smaller one. For instance, a big super market is more easily noticed than a small grocery store. Contrast
According to this principle, a stimulus that stands out against the expectations of people is bound to attract more attention. For instance, employees working at airports get so used to the noise that they may not notice the sounds made during the takeoff and landing of planes. However, if on any day there is some reduction in air traffic, they will notice the reduction in noise level. Repetition According to this principle, a stimulus is more likely to be noticed if it is repeated several times.
Motion This principle states that individuals notice objects that are in motion more than those that are stationary. Novelty and familiarity According to this principle, new objects in a familiar situation and familiar objects in a new situation attract people’s attention more. Internal Set Factors The internal set factors are: Learning and Perception
The process of learning creates some expectations in individuals. As a result, they tend to Perceive things in a particular way. What people see and hear is influenced by their expectations. Perceptual set in the workplace: Employees working in an organization for a certain period tend to interpret situations and events in a similar way. They might use certain phrases that are unique to their department or organization to symbolize certain things. However, in general, learning leads to substantial individual differences. Every employee Interprets a particular situation based upon his/her perception. For example, it has been observed that in general, the perceptions of the trade union and the management regarding the prevailing working conditions in an organization differ. Motivation and perception Perceptual selectivity is also influenced by motivation. Primary motives such as hunger and thirst have an impact on the perception of individuals. For instance, while walking on the road a person who is very thirsty might pay more attention to a store selling soft drinks. Secondary motives such as the need for power, affiliation, and achievement also have a major influence on perceptual selectivity. For instance, employees who feel that they have the need to attain power, affiliation, and achievement might be more attentive to the different situations in the organizations, as they are constantly on the look-out for opportunities.
Perception may also have an influence on motivation. For instance, some employees who are dedicated to their work might not mind attending office even when sick as they perceive the work to be more important than their health. Personality and perception Differences in the personality of individuals due to variances in age, gender, experience, etc. also might influence the perception of individuals. For instance, young managers might complain that senior managers are resistant to change in technology, management practices, etc. Similarly senior managers might complain that young managers take hasty decisions and implement unnecessary changes. Factors Influencing Perception The factors that help in shaping perception are the perceiver, the target which is being perceived, and the situation in which perception occurs. Although these factors help in shaping the perception of individuals, they also sometimes distort their perceptions. The Perceiver People’s personal characteristics play an important role in the way they perceive situations, events, objects, people, etc. The various personal characteristics can be a person’s motives, attitudes, past experiences, interests, and expectations. Those who have a positive attitude toward a particular thing or situation might view it in a completely different way from people having a negative attitude toward it. Studies conducted in the field of OB have also shown that people’s perception is greatly influenced by their unfulfilled goals and needs.
It has been observed that people who are engrossed by their personal problems might not be able to concentrate on their work properly. This shows that personal interests of individuals also have an impact on perceptions. People’s perceptions might also be influenced by their past experiences. For instance, an employee who has been reprimanded in the past by his/her superior for a minor mistake might perceive that superior to be a strict official. Expectation is another characteristic that has a major impact on the perception of individuals. For instance, people generally perceive the products sold by reputed companies to be of good quality. However, expectations might also lead to distortion of perception. For instance, policemen are perceived as fearless and authoritative, which might not be true in all cases. The Target The attributes of the target (stimulus) such as motion, sound, size, etc. also affect perception. For instance, people who are very tall get more attention in a crowd. Sometimes people might not perceive the target in isolation but associate it with some other aspects or events similar to it. In doing so, they might group unrelated objects. This grouping is largely done on the basis of physical proximity of the objects in consideration. It has also been observed that the tendency to group objects or events is more if individuals notice a greater proximity between them. The Situation Situational factors in the environment such as time, location, climate, a person’s state of mind, and other factors play a vital role in shaping the perception of individuals. Social Perception
Social perception is a cognitive process through which other individuals are perceived by the perceiver. Social perception also involves the study of how an individual gets to know other individuals. Research has indicated that social perception is influenced by the characteristics of both the perceiver and the perceived. Social perception is influenced by the:
• • •
personality of the perceiver personal characteristics of the perceiver self-esteem of the perceiver fact that an individual perceives others
depending upon many skills and not just one skill
The characteristics of the person being perceived that influence social perception:
Status of the individual (of person being perceived) Role played by an individual in the organization.
The following factors help in understanding the social perceptual process in organizations better: Attribution Attribution is the way in which people explain the causes for their own or others’ behavior. With the help of attribution, individuals try to understand the reasons behind the behavior of one another and also draw conclusions about the factors that influenced that behavior. There are two types of attributions. They are dispositional
attribution and situational attribution. In dispositional attribution, people’s behavior is explained with the help of internal factors such as their personality traits, their motivation, ability, etc. In situational attribution, people’s behavior is attributed to the external factors in the environment. These could be the social influences they are subject to, equipment being handled, etc. Stereotyping Stereotyping refers to the generalization of the characteristics of all members belonging to a certain group. People judge others based on the perception they have about the group to which these individuals belong and do not consider the unique characteristics of the person in question. For instance, politicians are considered to be manipulative and corrupt. However, judging a person based upon the characteristics of a group is unfair because every individual is unique and different from others. In the organizational context, stereotyping often takes place based upon gender, race, ethnicity, etc.
The Halo Effect In the halo effect, the perceiver tends to judge a person depending upon a dominant trait which can be either positive or negative. The various traits could be intelligence, sociability, aggressiveness, etc. The halo effect is generally found in performance appraisal. Often appraisers rate the performance of employees based on one particular trait rather than by taking all aspects into consideration. Halo effect
• • •
Is a common error made in performance appraisals Has two components viz. true and illusory Emphasizes only a particular trait of an employee and does not take
into account the overall picture.
Have negative consequences which have to be avoided.
Conditions under which halo effect might occur:
When the perceiver is not familiar with certain traits or does not
frequently encounter them.
When the traits are ambiguous and cannot be clearly expressed in
When the traits have moral implications.
DATA ANALYSIS Graphical analysis of consumer’s perception towards energy drinks: The analysis and interpretation is based on the data collected through questionnaire:
Below mentioned are the no. of respondents in percentage out of total 118 respondents:-
From the above figure it can be interpreted that only 44% (51) of the consumers know the presence of energy drinks in the market and 56% (67) of the consumers had never heard of it before.
From the above analysis it can interpreted that majority of consumers have heard about energy drinks.
Below mentioned are the no. of respondents in percentage out of total 51 respondents:-
From the above figure it can be interpreted that 75% (38) of the previous respondents have said they have tasted energy drinks and 25% of the respondents said that they had heard about it but not tasted yet.
Majority of consumers they tested energy drinks.
From the above figure it can be interpreted that 66% (33) said that they consume energy drink in weekends, 24% (12) said that they consume regularly, 8% (4) said they consume twice a month and 2% said they consume occasionally.
Majority of consumers said that they prefer to drink in weekends.
From above figure it can be interpreted that only 2% consume SJ XXX regularly, other consuming brands are Red Bull 78%, Cloud 9 14% and 6% others.
Majority of consumers that they preferred Red Bull regularly.
From the above figure it can be analyzed that 9% of the consumers like ingredients in their preferred brand, 64% like the quality, 23% like the taste and 4% like some other features.
From the above figure it can be interpreted that majority of the consumers like the quality in their preferred brands.
It can be analyzed that 41 % of consumers think that energy drinks are costly, 43% think that energy drinks are good for health, 9% take it just for fun and 7% have other opinion.
From the above figure it can be interpreted that majority of the consumer think that energy drinks are good for health and at the same time costly.
From above figure it can be analyzed that 14% said that there is no need for energy drinks, 54% said that yes energy drinks are needed and 32% said that they can’t say.
From above figure it can be interpreted that majority of them think that Energy Drinks are needed.
It can be analyzed that 36% of the consumer think that XXX is energetic, similarly 14% said that it is good, 34% said that it is highly energetic, 5% said that it is just another one drink and 11% said that they can’t say.
The above figure interprets that majority of the consumers think that SJ XXX is energetic drink.
From above figure it can be analyzed that 68% of the consumers said that energy drinks are scientifically tested, 12% said that no they are not and 20% replied they can’t say.
From the above data it can be interpreted that majority (35) of the consumers think that energy drinks are scientifically tested.
From above figure it can be analyzed that 46% said there is no need to add ingredients, similarly, 15% said yes and 39% said can’t say.
Majority of the consumers think that no need more ingredient in energy drinks.
Graphical analysis of retailer’s perception towards energy drinks: The analysis and interpretation is based on the data collected through questionnaire: Below mentioned is the no. of respondents in percentage out of total 226 respondents:
From the above figure it can be analyzed that 74% retailer sales Red Bull, 15% Cloud 9, 7% Sj Xxx and rest are other brands.
Majority of retailer prefer Red Bull energy drinks.
From the above figure it can be conclude that 62% retailer said that they are giving good offers and 24 % giving good promotion. Majority of retailer like offers of energy drinks.
It can be analyzed that 64% of the retailers said energy drinks are doing good business, whereas 36% said against it.
The above data interprets that majority of the retailers think that energy drinks are doing good business in this region.
From above figure it can be analyzed that 2% of the retailers are fully satisfied, 9% are satisfied, 32% are neither satisfied nor dissatisfied, 23% are dissatisfied and 34% are fully dissatisfied.
The above figure shows that majority of retailers are dissatisfied with the promotional activities of SJ XXX.
From the above figure it can be analyzed that 84% said that more activities are needed to be done, 1% said against it and 15% said they can’t say.
The above figure shows that 84% of the retailers think that more thing or activities are needed to be done by the companies to attract customers.
Finding, Recommendations & Conclusion
The observation was that SJ XXX energy drink have tough
competition with Red Bull and Cloud 9.
Red Bull being the no.1 brand worldwide has the maximum market
In the twin cities of Hyderabad/Secunderabad consumers are mostly
modern, young, adventurous, ready to spend quite sum of amount and full of excitement.
Whenever there is any occasion where the consumer wants to buy the
energy drink, the first name comes in his/her mind is Red Bull.
The company should focus on more promotion. Give some advertisement through media.
Recruit more and more sales executive. The company should apply pull strategy to capture the market rather
than push strategy as it is following now.
It can be conclude that the company GT & T give more and more promotion for SJ XXX and it will be increase their sales.
I also learned how and when to apply raw ideas and strategies following the situations other than the way it is planned.
Consumers Perception towards Energy Drink:-
Q1] Have you heard about energy drinks available in the market?
[Note: If the answer is yes then proceed further or else stop questioning]
Q2] Have you tasted any of them?
Q3] How often do you prefer to drink Energy Drink?
a] Regularly/Daily d] Occasionally
b] Week Ends
c] Twice a month
Q4] Which energy drink do you consume regularly?
a] Red Bull
b] Cloud 9
d] any other specify__________.
Q5] What is that you like most in your Energy Drinks?
d] any other specify__________.
Q6] What is your perception about energy drinks?
a] Good for health
b] Just for fun
d] any other specify__________.
Q7] Do you think energy drinks are needed?
c] Can’t say
Q8] What is your perception about XXX Energy Drink?
Q9] Do you really think that Energy drinks are scientifically tested energizers?
c] Can’t say
Q10] Do you think more things need to be added in energy drinks to improve health?
c] Can’t say
Retailers Perception towards Energy Drinks:
Q1] Which Energy drink doing well business?
a] Red Bull
b] Cloud 9
c] SJ XXX
Q2] Why it is doing well?
Q3] Do you think that Energy Drinks have good business?
Q4] Are you satisfied with the promotional activities of SJ XXX?
a] Fully satisfied
c] Niether satisfied nor Dissatisfied d] Disatisfied e] Fully dissatisfied
Q5] Do you think that more things are needed to be done to attract customers?
c] Can’t say
Philip Kotler (2009), PRINCIPLES OF MARKETING, 13th Edition, Pearson Dennis Adcock, Ray Brad field (1995) MARKETING PRINCIPLES AND PRACTICES 2nd Edition Pitman Publishing
Lamb, Hair, Mc Daniel ((2004), MARKETING 7th Edition,Thomson, South Western
E Jerome Mc Carthy (1987),BASIC MARKETING-A MANAGERIAL APPROACH,Irwin Publication
Pitman Publishing • Subhash C Jain (2007) 7th Edition,BASIC MARKETING ,Tata Mcgrill
http://www.Energydrink.com http://www.thexxxenergy.com http://www.cloud9.com http://www.redbull.com http://www.learnmarketing.com
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