Consumer Behaviour

A Comparative study of the Consumer Behaviour of Fruit Juices/Soft Drinks

NIFT MUMBAI April 24, 2012 Authored by: Abhishek Sinha, Abik Hirawat, Swati Jaiswal

Faculty Guide: Ms. Sonali Saldanha

ACKNOWLEDGEMENT It is great pleasure for me to express our hearty and sincere gratitude to our faculty guide, Mrs. Sonali Saldanha under whose genuine and inspiring guidance the present piece of investigation could get its present shape within such a limited range of time. I am highly thankful to Mr. Sushil Raturi who guided us in detail how to conduct a market research project and carry out the present research work. Special thanks are also due to all the friends, customers, retailers and distributors related to soft drinks for their precious co-operation provided to the investigator during the period of data collection. We would like to thank Google for helping us create an online form or questionnaire where respondents could fill and the responses were recorded on their servers. Such a wonderful initiative by Google. Thanks to all our friends, colleagues or acquaintances who spent time in filling the questionnaire and giving their valuable responses without which we could not have known consumer behavior. Thank You All.



(At the onset, We would like to make it clear that the ‗Consumer Behavior‘ part of this project comprises of confidential facts that any company which is a part of study in any case could not be divulged & hence only a brief description of the same is constituted in this report.) Soft Drinks were common preference among all the individuals before juices were being introduced. With the changing lifestyle and income levels, people are shifting their consumption patterns and have therefore become more health conscious thus leading to increase in demand of juices.

Market Research is based on some underlying parameters like:     Changing Buying Behavior Health factor Brand Loyalty Varying lifestyle

The basic subject matter of the research, comparative analysis of Soft Drinks and Juices is focused to study the mind/taste of different age group of people. The study starts with determining the major players in the soft drinks and the juices market, their overall consumption pattern among the people and ends up with the conclusion as per the state of mind of the average rational human being. The response has been analysed though an online questionnaire and recorded on Google. We find that fruit juices are on top of the mind of the consumers although they expect it to contain more vitamins and give more energy as well as them also want the prices to be reduced by a little.


The Process of finding consumer behavior Consumer behaviour is the study of when, why, how, and where people do or do not buy product. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for customer behaviour analysis as it has a keen interest in the rediscovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalisation, customisation and one-to-one marketing. Social functions can be categorized into social choice and welfare functions. Each method for vote counting is assumed as a social function but if Arrow‘s possibility theorem is used for a social function, social welfare function is achieved. Some specifications of the social functions are decisiveness, neutrality, anonymity, monotonicity, unanimity, homogeneity and weak and strong Pareto optimality. No social choice function meets these requirements in an ordinal scale simultaneously. The most important characteristic of a social function is identification of the interactive effect of alternatives and creating a logical relation with the ranks. Marketing provides services in order to satisfy customers. With that in mind, the productive system is considered from its beginning at the production level, to the end of the cycle, the consumer (Kioumarsi et al., 2009).


Chapter 1
INTRODUCTION1.1 Fruit juice & Soft Drink Juice is the liquid that is naturally contained in fruit or vegetable tissue. Juice is prepared by mechanically squeezing or macerating fresh fruits or vegetables flesh without the application of heat or solvents. For example, orange juice is the liquid extract of the fruit of the orange tree. Juice may be prepared in the home from fresh fruits and vegetables using a variety of hand or electric juicers. Many commercial juices are filtered to remove fiber or pulp, but high-pulp fresh orange juice is a popular beverage. Juice may be marketed in concentrate form, sometimes frozen, requiring the user to add water to reconstitute the liquid back to its "original state". However, concentrates generally have a noticeably different taste from that of their "freshsqueezed" counterparts. Other juices are reconstituted before packaging for retail sale. Common methods for preservation and processing of fruit juices include canning, pasteurization, freezing, evaporation and spray drying . A soft drink (widely referred to as pop, soda, or soda pop) is a drink that contains no alcohol but is usually referred to as a sugary drink. Soft drinks are often carbonated and commonly consumed while cold and or room temperature. Some of the most common soft drinks include cola, flavored water, sparkling water, iced tea, sweet tea, sparkling lemonade (or other lemon-lime sodas), squash, fruit punch, root beer, orange soda, grape soda, cream soda, and ginger ale. The term "soft" is employed in opposition to "hard", i.e. alcoholic drinks. Generally it is also implied that the drink does not contain milk or other dairy products. Hot chocolate, hot tea, coffee, tap water, juice and milkshakes also do not fall into this classification. Many carbonated soft drinks are optionally available in versions sweetened with sugars or with non-caloric sweeteners. 1.2 Labeling Most nations define a standard purity for a beverage to be considered a "fruit juice." This name is commonly reserved for beverages that are 100% pure fruit juice. In the United Kingdom the name of a fruit or fruits followed by juice can only legally be used to describe a product which is 100% fruit juice, as required by the Fruit Juices and Fruit Nectars (England) Regulations and the Fruit Juices & Fruit Nectars (Scotland) Regulations 2003. However a juice made by reconstituting concentrate can be called

juice. A product described as the "nectar" of a fruit must contain a minimum of juice between 25% and 50% for different fruits. A juice or nectar including concentrate must state that it does. The term "juice drink" is not defined in the Regulations and can be used to describe any drink which includes juice, however little. Comparable rules apply in all EU member states in their respective languages. In the USA fruit juice can only legally be used to describe a product which is 100% fruit juice. A blend of fruit juice(s) with other ingredients, such as high-fructose corn syrup, is called a juice cocktail or juice drink. According to the Food and Drug Administration (FDA), the term "nectar" is generally accepted in the U.S. and in international trade for a diluted juice to denote a beverage that contains fruit juice or puree, water, and which may contain artificial sweeteners. In New Zealand and Australia particularly (and others) juice denotes a sweetened fruit extract, whereas nectar denotes a pure fruit or vegetable extract. Fruit juice labels may be misleading, with juice companies actively hiding the actual content. "No added sugar" is commonly printed on labels, but the products may contain large amounts of naturally occurring sugars; however, sugar content is listed with other carbohydrates on labels in many countries. Some carbonated beverages may or may not contain fruit juice. They contain sugar and carbonated water. 1.3 Carbonated Drinks In late 18th century, scientists made important progress in replicating naturally carbonated mineral waters. In 1767, Englishman Joseph Priestley first discovered a method of infusing water with carbon dioxide to make carbonated water when he suspended a bowl of distilled water above a beer vat at a local brewery in Leeds, England. His invention of carbonated water, (also known as soda water), is the major and defining component of most soft drinks. Priestley found water thus treated had a pleasant taste, and he offered it to friends as a refreshing drink. In 1772, Priestley published a paper entitled Impregnating Water with Fixed Air in which he describes dripping oil of vitriol (or sulfuric acid as it is now called) onto chalk to produce carbon dioxide gas, and encouraging the gas to dissolve into an agitated bowl of water. Another Englishman, John Mervin Nooth, improved Priestley's design and sold his apparatus for commercial use in pharmacies. Swedish chemist Torbern Bergman invented a generating apparatus that made carbonated water from chalk by the use of sulfuric acid. Bergman's apparatus allowed imitation mineral water to be produced in large amounts. Swedish chemist Jöns Jacob Berzelius started to add flavors (spices, juices and wine) to carbonated water in the late 18th century.


1.4 Soft drink packaging sizes In the United States, soft drinks are sold in 3, 2, 1.5, 1 liter, 500 ml, 8, 12, 20 and 24 U.S. fluid ounce plastic bottles, 12 U.S. fluid ounce cans, and short eight-ounce cans. Some Coca-Cola products can be purchased in 8 and 12 U.S. fluid ounce glass bottles. Jones Soda and Orange Crush are sold in 16 U.S. fluid ounce (1 U.S. pint) glass bottles. Cans are packaged in a variety of quantities such as six packs, 12 packs and cases of 24, 36 and 360. With the advent of energy drinks sold in eight-ounce cans in the US, some soft drinks are now sold in similarly sized cans. It is also common for carbonated soft drinks to be served as fountain drinks in which carbonation is added to a concentrate immediately prior to serving. In Europe, soft drinks are typically sold in 2, 1.5, 1 litre, 330 ml plastic or 500 ml glass bottles; aluminium cans are traditionally sized in 330 ml, although 250 ml slim cans have become popular since the introduction of canned energy drinks and 355 ml variants of the slim cans have been introduced by Red Bull more recently. Cans and bottles often come in packs of six or four. Several countries have standard recyclable packaging with a container deposit, typically ranging from € 0.15 to 0.25. The bottles are smelted, or cleaned and refilled; cans are crushed and sold as scrap aluminium. In Australia, soft drinks are usually sold in 375 ml cans or glass or plastic bottles. Bottles are usually 390 ml, 600 ml, 1.25 or 2 litre. However, 1.5 litre bottles have more recently been used by the the Coca-Cola Company. South Australia is the only state to offer a container recycling scheme, recently having lifted the deposit from 5 cents to 10 cents. This scheme is also done in the Philippines; people usually buy glass bottles and return them in exchange for a small amount of money. In Canada, soft drinks are sold in cans of 236 ml, 355 ml, 473 ml, and bottles of 591 ml, 710 ml, 1 l, 1.89 l, and 2 l. The odd sizes are due to being the metric near-equivalents to 8, 12, 16, 20, 24 and 64 U.S. fluid ounces. This allows bottlers to use the same-sized containers as in the U.S. market. This is an example of a wider phenomenon in North America. Brands of more international soft drinks such as Fanta and Red Bull are more likely to come in round-figure capacities. In India, soft drinks are available in 200 ml and 300 ml glass bottles, 250 ml and 330 ml cans, and 600 ml, 1.25 l, 1.5 l and 2 l and 2.5 l plastic bottles. 1.5 Health effects The consumption of sugar-sweetened soft drinks is associated with obesity, type 2 diabetes, dental cavities, and low nutrient levels. Experimental studies tend to support a

causal role for sugar-sweetened soft drinks in these ailments, though this is challenged by other researchers. Many soft drinks contain ingredients that are themselves sources of concern: caffeine is linked to anxiety and sleep disruption when consumed in excess, and the health effects of high-fructose corn syrup and artificial sweeteners remain controversial. Sodium benzoate has been investigated as a possible cause of DNA damage and hyperactivity. Other substances have negative health effects, but are present in such small quantities that they are unlikely to pose any substantial health risk. Benzene belongs to this category: the amount of benzene in soft drinks is small enough that it is unlikely to pose a health risk. In 1998, the Center for Science in the Public Interest published a report entitled Liquid Candy: How Soft Drinks are Harming Americans' Health. The report examined statistics relating to the soaring consumption of soft drinks, particularly by children, and the consequent health ramifications, including tooth decay, nutritional depletion, obesity, type-2 (formerly known as "adult-onset") diabetes, and heart disease. It also reviewed soft drink marketing and made various recommendations aimed at reducing soft drink consumption. Juices are often consumed for their perceived health benefits. For example, orange juice is rich in vitamin C, folic acid, potassium, is an excellent source of bio available antioxidant phytochemicals and significantly improves blood lipid profiles in people affected with hypercholesterolemia .Prune juice is associated with a digestive health benefit. Cranberry juice has long been known to help prevent or even treat bladder infections, and it is now known that a substance in cranberries prevents bacteria from binding to the bladder. The high sugar content of fruit juices is often not realized—many fruit juices have a higher sugar (fructose) content than sweetened soft drinks; e.g., typical grape juice has 50% more sugar than Coca Cola. Fruit juice consumption overall in Europe, Australia, New Zealand and the USA has increased in recent years, probably due to public perception of juices as a healthy natural source of nutrients and increased public interest in health issues. Indeed, fruit juice intake has been consistently associated with reduced risk of many cancer types, might be protective against stroke and delay the onset of Alzheimer's disease. The perception of fruit juice as equal in health benefit to fresh fruit has been questioned, mainly because it lacks fiber and has often been highly processed. High-fructose corn syrup, an ingredient of many juice cocktails, has been linked to the increased incidence of type II diabetes. High consumption of juice is also linked to weight gain, but fruit juice consumption in moderate amounts can help children and adults meet daily recommendations for fruit consumption, nutrient intake and calories.


Chapter 2
Literature Review 2.1 Introduction of fruit Juice Company in India India is a market of diversity diverse with regards to incomes, price points of products, culture and preferences and a marketer has to get use to these diverse characteristics of the market. Drinking juice is not a part of our culture. We drink water with our meals but in the West one starts the day with breakfast and a glass of juice. Juice is to a great extent considered as a luxury not a necessity in our society, surely but slowly things are changing mainly in the urban and semi urban areas, where the population is getting more and more health conscious and are realizing the important nutrient values of fruit and are making them a part of their daily diet. The companies in this Rs. 100 crore industry will have to organize various promotional activities from time to time mainly to increase sampling and to educate the consumers about packaged fruit juice that it is as pure and nutritious as fresh juice which is perceived as fresh as it is extracted in their presence i.e. actual or assumed .There are two main brands in this segment of noncarbonated drink markets; they are ‗Real‘ from Dabur and ‗Tropicana‘ from PepsiCo. These two players command around 80% market share in the organized sector. We can observe this industry growing and new players entering the market. In recent times we have seen the entries of some international brands, like Berri [Australia], Ballantyne [Australia], and Tipco [Thailand], with the intention to strengthen their hold in India and to grow with the market India is the second largest for foods and vegetables in the world. The total production of food and vegetables is estimated to be around 148.5 million tones, out of which fruit account for only 48.5 million tones and the rest 100 million tones is accounted for by vegetables. However, the fruit juice market has not been fully tapped because of poor infrastructure, poor storage facility, and highly unorganized market, chiefly constituted by road side vendors. Consumer still prefers to buy juice from road side vendors even if juices are unhygienic. The major growth drivers in fruit juice market are, increase in health consciousness among consumers, increase in disposable incomes, and more sophisticated cocktail culture.


2.2 Leading Manufacturers of Fruit Beverages in India: Company 1. Parle Agro Brand Frooti Flavours Mango, Guava, Pineapple, Strawberry & Orange Apple Orange, Nature Sweet, Apple, Grape, Fruit. Slice 3. Dabur Real Pineapple, Tomato, Mixed

Appy 2. PepsiCo Ltd. Tropicana

Mango, Litchi, Orange & Guava. Grape, Guava, Orange, Pineapple, Tomato, Mixed Fruit, Litchi, Mango. Orange, Apple Orange, Apple Orange, Apple Orange, Apple Mango Mango

Real Active 4, Godrej Foods Jumpin Re Xs 5. Coca Cola 6. BBI. II Maaza Tree Top

7. Voltas 8. Hindustan 9. HP Agri

Volfruit Grapy HPMC

Mango Red Grapes, Litchi, etc. Apple Marketing


10. North East Agro Mkt. Ltd. 11. Kerala Milk Mkt. 12. Salstar Foods 13. Mohan Meakins 14. Modern Foods 15. Eastern Fruit 16. NAFEED

NERAMAC Milma Regold Gold Coin Rasika Efil Nafed

Pineapple Mango, Pineapple Mango, Apple Mixed Apple Juice Mango, Guava Mango, Litchi Apple, Mango, Processed Pineapple, Orange Mango, Pineapple, Orange Mango, Pineapple, Orange Mango, Pineapple, Orange Tropical Fruits Kioces Mango, Pineapple, Orange, Guava Mango, Mixed Fruit Juices Pineapple Agro. Guava,

17. Vadilal Industries Ltd. 18. Himgiri Foods 19. Lakhanpal Foods 20. WIMCO Ltd. 21. Tims Products 22. BEC foods 23. The Maharashtra Inds. Development Corp. Ltd.

Vadilal Himgiri VAFA Sunsip TIMS ROLZ NOGA


Coca-Cola, the corporation nourishing the global community with the world‘s largest selling soft drink concentrates since 1886, returned to India in 1993 after a 16 year hiatus, giving a new thumbs up to the Indian soft drink market. In the same year, the Company took over ownership of the nation‘s top soft-drink brand and bottling network. It‘s no wonder their brands have assumed an iconic status in the minds of the world‘s consumers.

2.3 INDIAN BEVERAGE MARKET The size of the Indian food processing industry is around $ 65.6 billion, including $20.6 billion of value added products. Of this, the health beverage industry is valued at $230 million; bread and biscuits at $1.7 billion; chocolates at $73 million and ice creams at $188 million. The size of the semi-processed/ready-to-eat food segment is over $1.1 billion. Large biscuits & confectionery units, Soya processing units and starch/ glucose/ sorbitol producing units have also come up, catering to domestic and international markets. The three largest consumed categories of packaged foods are packed tea, biscuits and soft drinks. The Indian beverage industry faces over supply in segments like coffee and tea. However, more than half of this is available in unpacked or loose form. Indian hot beverage market is a tea dominant market. Consumers in different parts of the country have heterogeneous tastes. Dust tea is popular in southern India, while loose tea in preferred in western India. The urban-rural split of the tea market was 51:49 in 2000. Coffee is consumed largely in the southern states. The size of the total packaged coffee market is 19,600 tones or $87 million. The total soft drink (carbonated beverages and juices) market is estimated at 284 million crates a year or $1 billion. The market is highly seasonal in nature with consumption varying from 25 million crates per month during peak season to 15 million during off-season. The market is predominantly urban with 25 per cent contribution from rural areas. `Coca cola and Pepsi dominate the Indian soft drinks market. Mineral water market in India is a 65 million crates ($50 million) industry. On an average, the monthly consumption is estimated at 4.9 million crates, which increases to 5.2 million during peak season.


2.4 RECENT ISSUES 1. Xtazy, another energy drink for the Indian market The Indian market for energy drinks was estimated recently to have a size of Rs 500 crore, about 90 million Euros. The market which is so far dominated by Red Bull, is attracting various new players which want to get a share in a growing business. One of the aspirants is Xtazy, an energy drink from the US. ―Xtazy is the forth largest energy drink inthe US‖, says Rohan Malhotra, Managing Director of R. M. Indian Liquor Pvt. Ltd., the exclusive importer for Xtazy. Malhotra has launched Xtazy already in Eastern India, and was looking now for a distributor in the Delhi area, when FII spoke to him during IFE fair in Delhi recently.

In order to take on Red Bull and get a share of 20% from their business, Malhotra wants to offer better conditions to distributors.―We provide a margin of 6-8% to a distributor, who thus can earn about Rs 6 a can‖, Malhotra says. ― This is more than what Red Bull offers which is only about 2 - 3 Rs per can.‖ Xtazy is available in cans of 350 ml, thus more than the usual 250 ml of other energy drinks, and will be priced with a MRP of Rs.85. Four variants are offered, Cranberry Blast, Sugar Free Passion Fruit-Pineapple, Orange Blast and Lime Blast. Malhotra has planned several marketing measures to promote Xtazy, like POS actions, coupons and direct marketing in a first round, and night parties in a second round. In marketing communication, he is highlighting not only the variants, but also health effects as the USPs of Xtazy, which are derived from ancient herbs used in the drink like gingko and guarana. The extract of gingko biloba leaf has been shown to dilate blood vessels and has the ability to increase peripheral blood circulation, especially to the brain, the company writes in a leaflet. Guarana from Brasil would serve to promote weight loss by increasing the metabolic rate and reducing the appetite. Besides the US, Malhotra says, Xtazy would be marketed also in Israel, Ukraine and in Turkey and would soon be launched in China.


2. Australia-based "Aromas" launches first coffee store in India. Australia-based "Aromas," one of the leading coffee chain shops, launched its first café outlet in India at Hiranandani, Powai, and Mumbai. The company also tied up with Ideal Hospitality Private Ltd (IHPL), which would own the brand in the country and south-east Asia. Jayant Mahiskar, chairman and MD, IHPL, said, "Aromas is being launched keeping in mind the true coffee connoisseurs. We aim at targeting the youth and corporate at our outlets and Powai with a mix of residential and office complexes was a natural choice. The coffee has been created from selection of the original beans and blended to suit all tastes. Aromas ensures freshness and fullness of flavor." According to the agreement with Aromas, IHPL will pay about 1.5% of the gross revenue earned. Further, the company has decided to invest about Rs.50-75 crore in the next three years to expand its footprint with 99 outlets in India.

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


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

"The creative thought behind the new communication was to further enhance the Slice experience into dimensions of pleasure, sensuality and indulgence. Last year's commercial was about enumerating the principles of 'Aamsutra' or the art of experiencing pure mango pleasure with the new Slice. This year, the commercial portrays the next level to bring alive the mango indulgence, stated Hari Krishnan, Vice President, JWT. The company has now opted for a 360 multimedia campaigns involving digital, print, radio, impact outdoors and sampling in core markets. 5. Parle Agro launches lemon flavoured drink "LMN" Parle Agro, one of the leading food & beverage companies in India, has launched a new fruit-based lemon drink LMN in the non-carbonated segment. The new brand is a natural lemon juice drink and the only brand in India with a taste closest to home made, fresh lime water (Nimbu pani). According to the company, LMN will offer consumers a healthy, refreshing drink with the goodness of vitamin C. Every summer, the Indian beverage market has seen cola majors battle it out. This summer, the launch of LMN will see the cola wars taking a back seat and the battle spilling over to the non-cola segment, to be more precise in the nimbu paani category. PepsiCo India last week launched a nimbu pani drink, Nimbooz, under the 7Up brand.

On the occasion of LMN's launch, Nadia Chauhan, joint managing director and CMO, Parle Agro, said, "Nimbu pani has traditionally been India's most commonly consumed cold beverage. In fact the idea of a branded lemon drink is so simple that you would wonder why nobody thought of it earlier. The challenge for us was packaging a natural product while retaining its fresh, original taste throughout its shelf life." LMN will be available in 110 ml Tetra, 200 ml Tetra and 500 ml PET packs priced at Rs 5, Rs 10 and Rs 23 respectively. The company aims to touch a turnover of Rs 30003500 crore by 2011.

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

6. PepsiCo launches 'Nimbooz,' packaged lemon juice with no fizz and artificial flavours PepsiCo India has launched its packaged nimbu paani, Nimbooz, under its 7Up brand. The home-made nimbu paani or lime juice has been specially created to suit Indian tastes. The lemon juice, no fizz and artificial flavours, is available in trendy, convenient packs. The drink offers great value to consumers in three packaging formats of 200 ml returnable glass bottles (RGB), 350 ml PET and 200 ml Tetra attractively priced at Rs 10, Rs 15 and Rs 10, respectively.According to Ms Punita Lal, Executive DirectorMarketing, PepsiCo India, Nimbooz, is specially developed to suit Indian tastes and preferences.

"Nimbooz is an affordable offering for consumers on the go because of its ready-to-drink format that is both convenient and hygienic. The proposition of the Indian refresher perfectly captures the mass appeal of this product and will certainly drive consumer connect, stated Ms Alpana Titus, Executive VP-Flavours, PepsiCo India. PepsiCo has drawn up an intensive consumer activation campaign to market Nimbooz. The 360 degree marketing communication plan will revolve around building awareness through multi-city launches and road shows, comprehensive 3D activation, leveraging Out-of-Home (OOH) media, radio, press and outdoors. Aggressive trial generation and sampling initiatives will also be taken forward across major cities of the country. A special 'Nimbooz Highway Gadi' has been created that will visit the four major highways connecting Delhi to Jaipur, Dehradun, Agra to drive trails and consumer education. 7. Coke launches fruit-flavoured Fanta Apple nationally After successfully introducing it in southern markets last year, Coca-Cola India has launched its fruit-flavoured soft drink 'Fanta Apple' nationally. The product is available in 200 ml and 300 ml returnable glass bottles and also in 500 ml PET pack priced at Rs 8, Rs 10 and Rs 22 respectively. During the Fanta Apple launch in October 2008, Venkatesh Kini, marketing vice-president, Coca-Cola India, said that the company had planned to reach about 3.5 lakh customers with sample apple flavoured drink to extend its market leadership in the fruit flavoured segment in Andhra Pradesh and Tamil Nadu. "As per consumer research, we have found that after orange, apple is the most preferred fruit in the country and Fanta Apple has been developed specially for the Indian palate," Kini said on Monday. According to experts, the nationwide launch of Fanta Apple is a part of the company's $250 million business plan for the country. Fanta Apple is the second flavour after Fanta Orange under "Fanta" brand of the company. "We have had an excellent response down south with a reused value to the drink and with the national launch of Fanta Apple, we are stepping stones to extend Coca Cola India's market leadership in the fruit-flavoured sparkling drink segment," Kini added. The company has also announced Bollywood actress Genelia D'Souza as the new brand ambassador of the Fanta brand.

According to reports, the current expected Indian soft drink market is about Rs.7,500 crore, in which the company shares about 50% market with its various brands like Coke, 7 Up, Fanta, Sprite and Thums Up. 2.5 STUDY OF GROWTH OF SOFT DRINK MARKET SOFT DRINKS: Carbonated drinks are dominated by artificial flavors based on cola, orange and lime with Pepsi and coca-cola dominating the market. The entire part of the drink is based on its artificial flavors and sweetening agents as no natural juice is used. MARKET: Cola products account for nearly 61-62% of the total soft drinks market. Two global majors‘ Pepsi and coke dominate the soft drink market. NCAER survey says 91% of soft drink in the country is in the lower, lower middle and upper middle class people.  The market is worth around Rs.7500 crores with growth rate of around 30-31%.  The production as soft drinks has increased from 5670 million bottles in 1998-99 to 6230 million bottles in 1999-2000 industry source. Market growth this year is expected to be even more as the cola giants apumping up huge funds to boost sales.   


COCA COLA: thanda matlab coca cola!!! Coca cola has truly remarkable heritage. From a humble beginning in 1886 it has now become the flagship brand of largest manufacturer, distributor of non alcoholic beverages in the world. In India, coca cola was the leading soft drink till 1977 when govt. policies necessitated its departure. Coca cola has made its return to the country in 1993.and made significant investment to ensure that the beverage is available to more and more people in remote as well as inaccessible parts of the world. Coca cola returned to India in 1993 and over the past ten years has captured the imagination of the nation, building strong association with cricket, the thriving cinema

industry, music etc. coca cola has been very strongly associated with cricket, sponsoring the world cup in 1996. In 2002, coca cola launched the campaign, ‖Thanda Matlab coca cola‖. in 2003, coke was available for just Rs. 5 across the country. FANTA: GHOONTH BHAR SHARARAT KAR LEY!!! Fanta entered the Indian market in year 1996 under the coca cola brand .over the years, Fanta has occupied a strong market place and is identified as ―the fun catalyst‖. Fanta stands for its vibrant color, tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment.

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

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


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

MAAZA: YAARI DOSTI TAAZA MAAZA!!! Maaza was launched in 1976. In 1993, maaza was acquired by coca cola India. Maaza currently dominates the fruit drink category. Over the years, maaza has become synonymous with mango. ―Taaza Mango, Maaza mango, Botal mei aam, maaza hai naam‖.consumers regard maaza as wholesome, natural, fun loving drink real experience of fruit. The campaign builds on the existing equity of the brand and delivers a relevant emotional benefit to the moms rightly captured in tagline, ―yaari dosti, and taaza maaza‖. PEPSI: YEH DIL MAANGE MORE!!! Pepsi cola is a carbonated beverage that is produced and manufactured by Pepsi co. It is sold in stores, restaurants and from vending machines. The drink was first made in the 1890‘s in North Carolina. The brand was trademarked on June 16, 1903.There have been many Pepsi variants produced over the years.            Diet Pepsi Crystal Pepsi Pepsi twist Pepsi max Pepsi samba Pepsi blue Pepsi gold Pepsi holiday spice Pepsi jazz Pepsi x(available in Finland & Brazil) Pepsi next(available in Japan & South Korea)

STUDY OF GROWTH OF FRUIT DRINK MARKET FRUIT JUICES: Branded fruit juice market in India holds an immense potential. Usually confused and considered synonymous with non-aerated drinks, fruit pulps, juices and squash are high sugar beverages, which are centrifuged and filtered to give a semi- clear appearance. In the past, this sector enjoyed an excise exemption, keeping cost at minimal. However the withdrawal of exemption has inflated costs and can affect growth, with dramatic change possible on reintroduction of excise exemption. MARKET:     The organized fruit beverage market is estimated at Rs.500 crores market. ( Nectars, drinks and juices combined ). The market has grown at a 20% to 25% rate. Of this, more expensive juices segment has grown at rate of 40% this year. It accounted for only 15% of the fruit beverage 3 years back. Domestic consumption of juices has gone up from 30%, three years back to 80% today. Mango based drinks account for two thirds of fruit drinks industry.


Dabur‘s flagship brand real fruit juice is a market leader in packaged fruit juice category. Real was launched in 1996 and the brand has carved a niche for itself by claiming to be the only fruit juice in packaged form .i.e.100%preservative free. Real, with market share of 57% comes in nine flavors:       Orange Mango Pineapple Mix fruit Grape Guava

  

Litchi Tomato Cranberry

Real Active is 100%fruit juice with no added sugar and is available in following variants:    Orange Apple Orange- carrot

GODREJ The food division of godrej industry produces and market fruit drinks, fruit nectar and sofit soymilk. Godrej‘s brand JUMPIN comes in the following flavor:  Mango  Pineapple  Apple  Litchi  Orange  Godrej‘s x‘s is a range of fruit nectar with more fruits. It‘s available in following flavors:    Orange Apple Grape

PEPSI’S TROPICANA Tropicana brand fruit juice enjoys a market share of 25% and has registered a double digit growth and has outpaced the growth of fruit juice market in India. It is available in following flavors:     Orange Apple Grape Cranberry


PARLE’S FROOTI and APPY Frooti was launched back in 1985 and enjoys market dominance with 85% of market share. Parle Agro‘s APPY, in 1996 had a market share of 5% in the fruit drink segment; in 2003 its new variant-APPY FIZZ was launched.

Industry analysis: The Rs 100 crore packaged fruit juice market is estimated to be growing at 20% to 25% annually, with Tropicana and Real holding 40% market share each. The market can be categorized in terms of product content and there are three major product contents available.    Drinks: Juice with pulp content less than 40%, Nectars: Juice with pulp content between 40 - 80%, Juices: Juice with pulp content more than 80%,

The canned juice market initially covered brands like NAFED, Noga, Midland, Gold Coin and Druk. These were fruit juices and nectars and not drinks. But they did not make a mark in the market due to reasons such as high price, unattractive packaging and lack of right promotion programme. Parle Agro‘s Frooti, a mango drink, was introduced in the tetra pack in 1985 and since then has been a leader in its segment. The market has suddenly picked up since 199495 and a few players have emerged as market leaders 2.6 Market Analysis Summary: One can sense an evolution that the industry has seen with development in the tetrapack market, there also has been a natural progression from drinks to nectars to juices and while traditionally fruit drinks were aimed at children, the new brands like ‗Onjus, Real, and Life‘ have focused on young adults and professionals. Although fruit drinks focus strongly on out of home consumption, the juices and nectars have been concentrating on takeaways or in-home consumption with more choice coming in, the tetra- pack market is likely to witness further segmentation. Packaged fruit juices are getting recognized as social drinks now, with dominant consumption being observed in the company of family and friends. People have started

to perceive fruit juices as anytime beverages, with consumption being spread more or less evenly between the mid mornings, afternoons and evenings. And generation now is as much inclined to sipping fruit juices as colas, with teenagers driving the maximum trials. If the findings of a usage and attitude study conducted by market research agency Indica Research across 1200 adults in Sec A and Sec B households in Delhi and Mumbai are anything to go by, then its not just champagnes and colas that qualify as social beverages. Flushed with funds after selling of its portfolio of soft drink brands, Thumps Up, Limca and Mazza and bottling facilities to Coca-Cola the company has enough cash and this is evident since it has not got listed. It also has a massive distribution network to reach its end consumer. Besides, the goodwill of the Parle brand is a great help in its new ventures. The ‗fresh n juicy‘ Frooti brand, is dominating the packaged fruit based drinks category since its launch in 1985. Frooti Mango, which has 75% market share in tetra packs, grew by a modest 4% in 2001 according to ORG-Marg data. Larger pack sizes (1 liter) and more pure juices (such as orange and pineapple) would soon appear under the Frooti brand, taking on the existing competitors in these flavours and sizes – brands such as Tropicana, Real and Onjus. Frooti has always been positioned as a drink for kids but now the company is looking forward to position it as a drink for the youth, especially, the college going teenagers. This was the basic rationale behind the Digen Verma Campaign, where a real life, down to earth person, who, like any college student likes to bunk classes, is a good sportsman and is a popular figure in the college, with whom the teenagers could actually associate themselves with Digen Verma. Parle Agro‘s product portfolio includes Appy, Frooti and N-Joi (a milk base drink, which are priced at Rs 10. New PET bottles have been introduced in 1 liter and 500 ml for mango Frooti at a price of Rs 28 and Rs 18 respectively. It has recently introduced a green mango flavour in the tetra pack and is also priced at Rs. 10. Parle Agro‘s has an enormous distribution reach of 10 lakh outlets, including leading hotels and restaurants, eateries, super – markets, and paan-shops. Meanwhile, Parle Agro is planning to tap the rural markets with its strongest brand Frooti. There are plans to set up a separate distribution in the product itself. In keeping with market sentiments, cola biggies Coca Cola and Pepsi, too, are focusing on innovation in their non-cola portfolio. Coca Cola has launched Maaza in pineapple and orange variants in 125 ml tetra packs and large family packs. It recently started a

new facility in Bareilly to cater to the growing demand for Maaza in north and central India. It is learnt that the company is also set to launch some "niche" products. Parle Agro has seen a trend towards fruit-based products. Parle Agro spent Rs 5 crore (Rs 50 million) to relaunched its flagship mango drink, Frooti, with modified packaging and a new ad campaign. It launched a guava drink, Frooti Guava, in Mumbai and other western regions in 65ml packs priced at Rs 2.50. The company is now out with Appy Fizz, an aerated apple drink in champagne-shaped PET bottles. Launched in Bangalore, it is being rolled out in Kolkata and Chennai in 500 ml and 300 ml packs retailing at Rs 25 and Rs 18, respectively. The 60 million case fruit beverage market never had it so good. Of the Rs 7,000-8,000 crore (Rs 70-80 billion) drinks market, fruit beverages account for Rs 500 crore (Rs 5 billion), growing at 25- 30 per cent annually. Like most drinks, summer accounts for 65 per cent of total sales. 2.7 Market Research  Among packaged fruit beverages, the ‗awareness to trial, ratio of PepsiCo‘s Tropicana juice brand has been rated the highest. Up to 17% of the respondents were aware of Tropicana, while the brand‘s trial stood at 11%, also, 8% of the respondents stocked the brand at their homes. Other parameters where Tropicana edged out competitors included taste, health, purity and nutrition, according to the study, Tropicana was also perceiver as ‗reasonably priced‘. The average Indian may have a legendary weakness for mango, but when it comes to preference of fruit-based juices; his choices are in tune with international trends. Therefore it is orange juice that is the most preferred fruit juice flavour in India, followed by apple, sweet orange and mixed fruit. The findings indicate that most packaged juice drinking consumers travel abroad on holidays. Other attributes of branded juice consumers include employment of domestic help, ownership of assets and credit cards, and health consciousness with 80% respondents going to aerobic classes or working out at gymnasiums. Understandably therefore, awareness and trial levels of packaged juices are higher within the Sec A category, than among Sec B consumers, the majority of whom rated these as aspirational. Awareness levels are similar in both Mumbai and Delhi; more trials are generated by Delhities than their counterparts in Mumbai. The consumers are starting to perceive fruit juices at home. While 55% of the respondents consumed 1- litre packs at home, 45% consumed 200ml packs. The fruit beverage market has more acceptances in Northern and Western India, which is due to the climatic conditions prevailing there with relations to the rest of the country.

 

  

Chapter 3
Research Methodology:

Every project work is based on certain methodology, which is a way to systematically solve the problem or attain its objectives. It is a very important guideline and lead to completion of any project work through observation, data collection and data analysis. According to Clifford Woody, ―Research Methodology comprises of defining & redefining problems, collecting, organizing & evaluating data, making deductions & researching to conclusions.‖ For the purpose of this study, we prepared a research tool, a questionnaire, to find out the relevant primary data pertaining to the mindset of the students about coffee and Café Coffee Day. The research design was descriptive in nature and the sample set was 32. The data was collected based on information provided by: Navi Mumbai and South Mumbai– Besides the primary data collected with the help of the questionnaire, we have also collected the relevant secondary data from various sources like magazines, books and internet and newspapers. Accordingly, the methodology used in the project is as follows:      Defining the objectives of the study Framing of questionnaire keeping objectives in mind (considering the objectives) Feedback from the respondents Analysis of feedback Conclusion, findings and suggestions.

3.1 Purpose Of The Study The main aim of this research study is to analyze the preference of people of different age groups on consumption patterns of Soft Drinks and Fruit Juices.


3.2 Objective Of The Study  

To study the preferences of the people for soft drinks and fruit juices. To find out the factor(s) that influences the consumer‘s consumption of soft drinks and fruit juices.

To test the know-how of the consumers regarding the various existing brands of soft drinks and fruit juices.

 

To explore the next best beverage after soft drinks and fruit juices.

To find out how the beverage is positioned in the mind of the consumers.

3.3 Scope Of The Study

This study is confined to the Mumbai city region covering areas under Thane Municipal Corporation limits.

  

Seasonal drinks are not considered in the study.

We are considering only canned juices.

We are not considering water & alcoholic drinks.


3.4 Research Design A research design is a framework or blueprint for conducting the marketing research project. It specifies the details of the procedures necessary for obtaining the information needed to structure and/or solve marketing research problem. On the basis of fundamental objectives of the research we can classify research design into two general types:   EXPLORATORY RESEARCH CONCLUSIVE RESEARCH

Exploratory research is one type of research design, which has its primary objective the provision of insights into, and comprehension of, the problem situation confronting the researcher. Conclusive research is designed to assist the decision maker in determining evaluating and selecting the best course of action to take in a given situation.

Conclusive research can be further divided into two types: Descriptive  Experimental The research design used in this project is a DESCRIPTIVE DESIGN. Descriptive study as the name implies is designed to describe something-for example the characteristics of users of a given product, the degree to which the product is used varies with the income, age, etc.

SAMPLING TECHNIQUE USED This research has used convenience sampling technique. 1) Convenience sampling technique: Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient. SELECTION OF SAMPLE SIZE For the study, a sample size of 32 has been taken into consideration. SOURCES OF DATA COLLECTION

Research will be based on two sources: 1. Primary data 2. Secondary data 1) PRIMARY DATA: Questionnaire: Primary data was collected by preparing questionnaire and the people were randomly being requested to fill them. 2) SECONDARY DATA: Secondary data will consist of different literatures like books which are published, articles, internet and websites. In order to reach relevant conclusion, research work needed to be designed in a proper way.

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



1. What do you prefer to drink?
          

Soft Drinks Fruit Jiuces Pepsi Coke Thums Up Mountain Dew Limca Maaza Frooti Tropicana Other:

2. How many times in a week do you consume your favorite soft drink/fruit juice?
     

Daily Once in 2 days Rarely More than once daily Weekly Other:

3. Why did you select your most preferred brand as answered in Q. 1?

If your most preferred brand, for example, Pepsi, raises its price, will you switch to the next preferred brand?
 

Yes No

4. What induces you to buy soft drinks?

Any other

5. What other factors make you switch from your present brand to a new one? (Tick as many as you want).
     

Change in price If a better taste is made available You feel better and smarter to use the new brand I want to change as I am fed up with the old one. Difficulty in availability Other:

6. What quality you expect from your favorite cold drink?
      

It should be more strong in taste. It should be light. It should contain vitamins. It should have a pleasant fragrance. It should give me more energy. It should make match my personality. Other:

7. What do you expect from your favorite cold drink in terms of quantity?
   

They should give more for the same price. I am satisfied with the quantity I am not satisfied with the quantity. Other: 8. Are you satisfied with the price of your favorite cold drink? 1 I am extremely unsatisfied. 2 3 4 5 I am extremely satisfied.


9. What price would you be comfortable buying a cold drink of your choice for a bottle of 200 ml?

10. How easily is your favorite cold drink available with the retailers?
    

Its available everywhere easily. It‘s not available easily, I have to do some extra effort to find it. Its available with extreme difficulty, the distribution channel should be improved. Its available only in hypermarkets or malls. Other:

11. Do advertisements affect your purchase?


12. Name any three brands of Fruit juices & Soft Drinks that are there in your mind at present? 13. Your name please 14. your age as on 2012 15. Gender 16. Occupation
     

Student Housewife Professional Service Business Other:


17. Your monthly income/budget
   

Rs. 5000 -Rs. 10000 Rs. 10000 - Rs. 15000 Rs. 15000 - Rs. 30000 Above Rs. 30000


Chapter 4
Data Analysis and Interpretation


We got a total of 34 responses for the questionnaire by different people. 1. The answer to question “What do prefer to drink?” answered as follows: first you was

Fruit juices and Maaza was the most preferred drink among the consumers, thus giving the result that people are surely health conscious and it was followed by Frooti, Thums Up and soft drinks which gives us the preferences of consumers in soft drinks market.

Soft Drinks Fruit Juices Pepsi Coke Thums Up Mountain Dew Limca Maaza Frooti

5 12 2 4 5 3 2 12 6

16% 39% 6% 13% 16% 10% 6% 39% 19%


Tropicana Other

3 2

10% 6%

People may select more than one checkbox, so percentages may add up to more than 100%. 2. The response to the second question was as follows:

Daily Once in 2 days Rarely More than once daily Weekly Other

11 8 7 1 5 1

33% 24% 21% 3% 15% 3%

Maximum number of respondents said they preferred their favorite soft drink daily. We will analyze through next questions why people consume their favorite cold drinks daily. This was followed by people who consume at least once in 2 days. These two options make more than half of the population which gives us an idea how addicted to soft drinks people are.


3. Why did you select your most preferred brand as answered in Q. 1? Exact Responses: Coz its healthy and tasty Tasty and healthy it tastes good healthy and feasible Coz I like the taste and flavour Health Taste Its good for the health Taste Taste is great Coke Taste Health conscious The responses can be summarized as follows: Reason for selection Healthy and Tasty Due to only taste To quench the thirst Brand Name Brand Personality Its not aerated Because I love it

Owing to its nutritional value and taste. Taste moutain dew Maaza Taste I love the brand personality To quench the thirst Because its strong Fresh Taste, quality Taste Its healthy

No. of people 17 4 2 5 1 1 2

The pie chart below shows that most of the people select their favorite soft drink for its quality of being healthy and tasty, very few number of people related it to other qualities like love for the brand, brand personality or just to quench the thirst.


No. of people
1 5 17 2 4 1 2 Due to only taste To quench the thirst Brand Name Brand Personality Its not aerated Because I love it Healthy and Tasty

4. Brand loyalty If your most preferred brand, for example, Pepsi, raises its price, will you switch to the next preferred brand? Yes No 12 21 38% 66%

People may select more than one checkbox, so percentages may add up to more than 100%. This response shows that most of the respondents are brand loyal i.e. even if the price of their favorite brand is increased, they will not switch to another brand.


5. What induces you to buy soft drinks? Price with quantity Health drink Taste Status symbol Variety Addiction Any other 4 7 18 0 1 3 1 12% 21% 53% 0% 3% 9% 3%

We can see the largest percentage of people 53% buy their cold drinks because of taste only while 21 % are cautious about their health.

6. What other factors make you switch from your present brand to a new one? (Tick as many as you want). Change in price If a better taste is made available You feel better and smarter to use the new brand I want to change as I am fed up with the old one. Difficulty in availability Other 3 19 2 1 6 3 9% 56% 6% 3% 18% 9%


As a contradiction to the question of brand loyalty in Q. 4, we can see here that 56 % of the people are ready to change the brand, if a better taste is made available by another brand. While 18 % will change the brand if they find difficulty in availability of their preferred brand.

7. What quality you expect from your favorite cold drink? It should be more strong in taste. It should be light. It should contain vitamins. It should have a pleasant fragrance. It should give me more energy. It should make match my personality. Other 7 6 13 6 8 0 2 23% 20% 43% 20% 27% 0% 7%

People may select more than one checkbox, so percentages may add up to more than 100%.

Most of the respondents felt that their cold drink should contain vitamins. Most of the consumers are cautious about their health while consuming cold drinks. They also feel

that they should get more energy from their soft drinks. As usually, a 250 ml. of cold drink gives only 100 K Cal of energy which is only due to the sugar contained in it. Thus this point is really noticeable. 8. What do you expect from your favorite cold drink in terms of quantity? As we can see from the below chart, nearly half of the respondents are not satisfied with the price in terms of quantity and they felt that they should give more for the same price.

9. Are you satisfied with the price of your favorite cold drink?

1 - I am extremely unsatisfied. 2 3 4 5 - I am extremely satisfied.

4 2 15 9 1

12% 6% 44% 26% 3%

I am extremely unsatisfied.

I am extremely satisfied.

In this case, we can see that most of the consumers are neutral in this range. More are satisfied with the price of their favorite cold drink while few are unsatisfied. But response to the next question says something else.

10. What price would you be comfortable buying a cold drink of your choice for a bottle of 200 ml.? 8 30 10 Rs.15/- Rs. 5 -6 6 10 10 5 rs 8 rupees Any Rs. 8 Rs. 8 25 10 8 rs15 20 7 Rs. 5 Rs. 5-7 10 rs for frooti Rs.. 8/- 30 Rs. 5 15 8 rs5 rs30 15 rs We can see that most of the people want a cold drink currently priced at Rs. 10 at Rs. 8, thus we can conclude that consumers are not satisfied with the price. One respondent says 10 Rs. For Frooti, which has a price of 12 Rs. Currently which means that people want a decrease of 20 % from the current price. 11. How is your favorite cold drink available with the retailers? Its available everywhere easily. It‘s not available easily, I have to do some extra effort to find it. 27 3 87% 10% 3% 0% 0%

Its available with extreme difficulty, the distribution channel should be 1 improved. Its available only in hypermarkets or malls. Other 0 0

People may select more than one checkbox, so percentages may add up to more than 100%. In terms of availability, we find that 87 % of the respondents say that their favorite cold drink is easily available at the local shop which means there are no problems in access to soft drinks at the local store.


12. Do advertisements affect your purchase? Yes No 22 12 65% 35%

It shows that more people are affected and attracted by advertisements that means consumers are largely influenced by advertisement. 13. Name any three brands of Fruit juices & Soft Drinks that are there in your mind at present? Real, Fanta, Minute Maidfrooti,amul kool,tropicanamazaReal, minute maid, pulpy orangeMazaa, Slice, FrootiPepsi, Coca Cola, Mazapepsi coke frootimaaza, frooti, slicemaza,frooti,mountain dewmaaza,appy Occupation of the respondents Student Housewife Professional Service Business Other 23 0 3 5 0 3 68% 0% 9% 15% 0% 9%


Respondents’ monthly income/budget

Rs. 5000 -Rs. 10000 Rs. 10000 - Rs. 15000 Rs. 15000 - Rs. 30000 Above Rs. 30000 Pivot Table 1 (Cross Tabulation)

12 5 6 4

35% 15% 18% 12%

This table shows the preferences of people over the reason why they buy their favorite cold drink with the quantity they will buy that cold drink. We find that Maaza is the highest voted i.e. 15 followed by fruit juices i.e. 11. Most of the people prefer to drink Maaza or a fruit juice.


Chapter 5
Findings from the data

This project aims to find out the various factors influencing the consumer behaviour while making a purchase of a soft drink in India. Background talks about various factors that have led us to undertake this study and how and to whom this report will benefit. Objectives talks of types of data the research project will generate and how these data is relevant. Research approach gives a non-technical description of the data collection method, measurement instrument, sample and analytical techniques.

The beverage market in India is worth 2074.67 Million INR. Though the major portion of the market is still dominated by the carbonated soft drinks there is major shift towards the Juice segment. There was a growth of 31.52% in the Juice segment from 2010 to 2011. As a result of this phenomenal growth, a lot of competition has entered the market. A number of new brands have flooded the market.

Soft Drinks were common preference among all the individuals before juices were being introduced, with the changing lifestyle and income levels, people are shifting their consumption patterns and have therefore become more health conscious thus leading to increase in demand of juices.

Due to these changes in the Fruit drink market there is a need to identify and evaluate consumer behaviour. This study aims to determine the factors influencing the consumer behaviour while buying Coca Cola‘s Maaza, Parle Agro‘s product Frooti; Appy Fizz in India. We also need to study the factors that are now driving the consumer‘s consumption pattern. Also, due to the increase in the competition there is a need to determine the awareness levels for the various brands in fruit juice market amongst the consumers.

The study of the consumer preference not only focuses on how and why consumers make buying decision, but also focuses on how and why consumers make choice of the fruit juice they buy and their evaluation of these products after use. So for success of Coca Cola‘s Maaza or Parle Agro or its product Frooti & Appy Fizz it is very necessary to depart its concentration towards consumer preference.

All marketing starts with the consumer. So consumer is a very important person to a marketer. Consumer decides what to purchase, for whom to purchase, why to purchase, from where to purchase, and how much to purchase. In order to become a successful marketer, he must know the liking or disliking of the customers. He must also know the time and the quantity of goods and services, a consumer may purchase, so that he may store the goods or provide the services according to the likings of the consumers. Gone are the days when the concept of market was let the buyer‘s beware or when the market was mainly the seller‘s market. Now the whole concept of consumer‘s sovereignty prevails. The manufacturers produce and the sellers sell whatever the consumer likes. In this sense, ―consumer is the supreme in the market‖.


Chapter 6

• Maaza is the most preferred fruit juice solely because of its taste, it need not change its advertising strategy while Frooti can go for Salman Khan as a brand ambassador as he is very popular in India and symbolizes good health. (Punch line can be something like ―After gym, have a Frooti‖) Along with him, Frooti should also go for a famous cartoon. •Character like Scooby Doo or Pokémon to target the kids and both of them should feature together in the advertisement. •The survey shows that parties/celebrations are the places where these drinks are consumed mostly. Other cold drinks which are lacking behind Maaza must try to increase the sales by creating and focusing on more utilities so that their product is used more frequently. •As it is seen that people consider canned juices to be healthy with preservatives. This shows that awareness level of the people is low and needs to be corrected. Therefore, various methods like campaigns by government, help by media, etc can be taken to change this.


Chapter 7

•By taking some initiatives, other soft drink brans can compete with the fruit juice segment comprising of Maaza, Real and Tropicana, and can maintain its position as a market leader in the NCSD category. •The consumers response to the pricing of the product says they are a little extra priced. •A majority of the respondents consume soft drinks and fruit juices daily and few at the time of parties & celebrations. •Most of the respondents consume soft drinks because of its taste, health and price. •Most of the respondents consume fruit juices because it is healthy. •Most of the respondents were of the strong view that advertisements affect their purchases and the rest were not at all affected by the advertisements.


Chapter 8

•The study was confined to some areas of Mumbai and Navi Mumbai only. •Chances of some biasness could not be eliminated. •A Samples size of 34 has been used due to time limitations. •The survey was conducted online so it contains the view of only the educated users who use internet.



Case example: drinks manufacturer Let‘s use SWOT analysis to consider the strategy of a hypothetical prominent soft drinks manufacturer called Coca-Cola. Coke is currently the market leader in the manufacture and sale of sugary carbonated drinks and has a strong brand image. Sugary carbonated drinks are currently an extremely profitable line of business. The company‘s goal is to develop strategies to achieve sustained profit growth into the future. 1. Strengths A firm‘s strengths are its resources and capabilities that provide the firm with a competitive advantage in the market place, and help the firm achieve its strategic objective. Coke‘s strengths might include:
    

strong product brand names, large number of successful drink brands, good reputation among customers, low cost manufacturing, and a large and efficient distribution network.

2. Weaknesses Weaknesses include the attributes of a business that may prevent the business from achieving its strategic objective. Coke‘s weaknesses might include:
 

lack of a large number of healthy beverage options, and large manufacturing capacity makes it difficult to change production lines in order to respond to changes in the market.

3. Opportunities Changing business conditions may reveal certain new opportunities for profit and growth. Coke‘s opportunities might include:
 

new countries and markets that Coke might expand into, and a lack of any strong global fruit juice or other healthy beverage manufacturer leaves a gap in the market.

4. Threats Changing business conditions may present certain threats. Coke‘s threats might include:

 

shifting consumer preferences away from Coke‘s core products, and new government competition regulations that prevent the acquisition of large competing soft drink companies.

5. Proposed strategy The main opportunity for Coca-Cola is the rising popularity of healthy beverage alternatives, such as water and fruit juice. The dominance of Coca-Cola and the increasing number of competition regulations that prevent Coke‘s acquisition of competing drink manufacturers presents a threat to Coke‘s objective to obtain profit and growth. A proposed strategy may therefore be to find small healthy beverage manufacturers with quality products. Purchasing these small companies will not raise competition concerns. Coke might use its strong brand name, manufacturing capacity and distribution networks to obtain strong market penetration for its newly acquired healthy beverages.


Annexure II Collected Data Sample



Annexure III
Bottled and Canned Soft Drinks and Carbonated Water Industry report: This category includes establishments primarily engaged in manufacturing soft drinks and carbonated waters. Establishments primarily engaged in manufacturing fruit and vegetable juices are classified in various canned, frozen, and preserved food classifications. Those manufacturing fruit syrups for flavoring are classified in SIC 2087: Flavoring Extracts and Flavoring Syrups, Not Elsewhere Classified; those manufacturing nonalcoholic cider are classified in SIC 2099: Food Preparations, Not Elsewhere Classified. Establishments primarily engaged in bottling natural water are classified in SIC 5149: Groceries and Related Products, Not Elsewhere Classified.

Industry Snapshot Soft drink companies manufacture and sell beverage syrups and bases to bottling operations that add sweeteners or carbonated water to produce the final product. Independent bottlers work under contract with various soft drink manufacturers and are allotted specific territories to serve. The manufacturers provide the bottlers with syrups and bases and with a variety of business services, including product quality control, marketing, advertising, engineering, and financial and personnel training. In turn, the bottlers supply the required capital investment for land, buildings, machinery, equipment, trucks, bottles, and cases. The soft drink industry sells its product in two forms, packaged and fountain service. With fountain service, the soft drink product is dispensed and served in cups, typically in a restaurant or any location with a food service station. The carbonated soft drink industry declined 2.1 percent in volume in 2009 to 9.4 billion cases, according to Beverage Digest. The Coca-Cola Company continued to hold the largest market share at 41.9 percent, followed by PepsiCo with 29.9 percent and Dr Pepper Snapple Group with 16.4 percent. Retail dollar value of the industry totaled $73.9 billion. Coke remained the most popular soft drink in the United States in 2009, with a 17 percent market share. Regular Pepsi and Diet Coke were tied for second at 9.9 percent each. Mountain Dew (6.7 percent market share) and Dr Pepper (6.1 percent market share) rounded out the top five. Sales in the bottled water sector were also down in 2009, according to a report by Beverage World. Total U.S. sales dropped 2.7 percent to 8.4 billion gallons. Private label brands led in revenue, with $884.3 million in sales in 2009 (excluding WalMart), followed by Aquafina ($763.7 million) and Dasani ($735.0 million). Industry experts

blamed the decline in sales on the slow economy and noted that many consumers were opting for tap water to save money. Background and Development The soft drink industry began in the mid-1880s with the creation of a syrup that was mixed with carbonated water and served at drug store lunch counters. During the early years, soft drinks were sold only in stores that could provide fountain service. Increasing distribution was tied to building additional syrup manufacturing plants.

With the advent of bottling machinery, soft drinks began to be distributed beyond the town drug store. The first merchant to bottle Coca-Cola was Joseph A. Biedenharn of Vicksburg, Mississippi, who installed a bottling machine in his candy store in 1894. The development of large-scale bottling assisted the proliferation of Coca-Cola, and by 1895, the drink was sold in nearly every part of the United States. An infrastructure of independent bottlers working under contract with Coca-Cola, producing the drink to exact specifications, and distributing it within a specific region, soon became the model distribution method for Coke and was emulated by others.

The 1960s and 1970s brought acquisitions and diversification for Coca-Cola and PepsiCola. In 1960, Coke purchased Minute Maid and later acquired Duncan Foods. The Coca-Cola Company Foods Division was created in 1967 and was later renamed CocaCola Foods. Meanwhile, Pepsi-Cola merged with Frito-Lay in 1965, changing its name to PepsiCo but maintaining its beverage division under the name Pepsi-Cola. PepsiCo soon ventured into food service and snack foods with the acquisition of Pizza Hut, Taco Bell, and Kentucky Fried Chicken restaurants.

During the 1980s, as consumers became more interested in health and fitness, the soft drink industry faced stiff competition from the makers of bottled water. In response, soft drink manufacturers developed low-calorie and caffeine-free beverages, such as Diet Coke and Diet Pepsi. The start of the 1990s ushered in a new kind of competition focused on "New Age" beverages such as ready-to-drink teas, fruit juice beverages, and flavored waters. Gatorade, the perennial leader among sports drinks, also saw new competition during the 1990s.

The number of independent bottlers began to decline as major soft drink manufacturers consolidated bottling operations by acquiring independent companies and combining them to make one large operation. For example, by early 1999, the number of CocaCola bottlers in the United States had dropped to 96, from 353 in 1980. The mergers of

the independent bottlers occurred partly because of the amount of capital and equipment needed to modernize and update manufacturing facilities.

It appeared that there was little room for new products in consumers' hearts in the late 1990s. In a move reminiscent of Coke's disastrous New Coke campaign, Pepsi rolled out a diet cola called Pepsi One in October 1998. Hyped by the company as a better tasting diet cola, sales started strong, with Pepsi One capturing 2 percent of the market. It soon faltered as consumers decided it did not taste all that different from Diet Pepsi. Pepsi One's share soon fell to 1.4 percent of the market.

Aggressive marketing paid off for the industry in the late 1990s. In 1999, American teenagers drank twice as much soda as milk. By contrast, in 1979, those figures were reversed. Alarmed at the trends, educators and legislators in Washington enacted laws keeping soft drink manufacturers from selling products in the nation's schools before and during lunch. Principals at some schools began allowing companies to offer free drinks at lunch, thereby getting around the law. Congress introduced the Better Nutrition for School Children Act of 1999, banning the giveaways. Industry spokesmen said the industry remained neutral on the legislation, saying they were for school choice on the matter. They pointed out that some principals were in favor of the free soft drinks as it kept some students on school grounds eating nutritional lunches, instead of leaving campus to eat at fast-food establishments.

Current Conditions Soft drink manufacturers struggled at the start of the second decade of the twenty-first century, largely due to the economic downturn, but also due in part to negative publicity in the industry, causing consumers to switch to healthier beverage choices like reday to drink teas and functional waters.

Government action also posed a problem for the soft drink industry. In an effort to reduce obesity in the United States, the U.S. government proposed a tax on sugared soft drinks, and sugared beverages were increasingly unwelcome in certain venues across the country. For example, in 2010, San Francisco's mayor Gavin Newsom initiated a ban on sugared soft drinks, including soda, sports drinks, and artificially sweetened water, in vending machines on city property.


In response to concerns about the health effects of soft drinks on the American public, in 2009, the Coca-Cola Company came out with the 7.5-ounce, 90-calorie "slim can," which was available in Coke, Cherry Coke, Sprite, Fanta Orange, and Barq's Root Beer. The company also launched Sprite Green, which was the first soft drink sweetened with the newly government-approved stevia-based rebaudioside A (reb A). PepsiCo also jumped on the bandwagon and released Pepsi Natural, which was made with sparkling water, natural sugar, caramel, and kola nut extra. Additional efforts to cooperate with government initiatives came when the American Beverage Association (formerly the National Soft Drink Association) announced in February 2010 that major soft drink companies would, in cooperation with the Food and Drug Administration, start listing the calories in their products on the front of the cans as well as on vending and fountain machines. Completion of the project was set for 2012.

Industry Leaders The Coca-Cola Company was the global leader in the industry in 2010 and owned four of the top five best-selling soft-drink brands in the world (Coca-Cola, Diet Coke, Fanta, and Sprite). By 2009, worldwide sales for the company were $30.99 billion. The company employed 92,800 people that year. Using a franchise system for distribution, Coca-Cola and its subsidiaries sold 3,000 drinks under 500 brand names in more than 200 countries.



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