A SURVEY ON THE CONSUMER PREFERENCES OF PEPSI(FIZZY DRINKS)

(In Naval Base, Visakhapatnam)

BACHELOR OF BUSINESS MANAGEMENT (2011-2014)

SUBMITTED BY S.SWAROOP KUMAR Regd no:- (1214112243)

UNDER THE ESTEEMED GUIDANCE OF Dr.P.ASHA(Ph.D) (ASSISTANT PROFESSOR)

GITAM INSTITUTE OF MANAGEMENT GITAM UNIVERSITY

(Declared as deemed to be university u/s 3 of the UGC Act 1956) (Accredited with A Grade by NAAC)

VISAKHAPATNAM

DECLARATION

I SWAROOP KUMAR, student of Bachelor of Business Management (B.B.M.), GITAM Institute of Management (GIM), GITAM University, hereby declare that the project work initiated on Survey Sheet and the conduction of this survey is a genuine work done by me in partial fulfillment for the requirement of the degree of Bachelors of Business Administration. I confirm that this project has not been published or submitted elsewhere for the award of any degree in part or in full.

Date

Signature:

Place:

Certificate

This is to certify that the project report titled CONSUMER PREFERENCE ON PEPSI is an original work carried out by Swaroop Kumar (Enrollment No: 1214112243), under my guidance and supervision, in partial fulfillment for the award of the degree of Bachelors of Business Administration by GITAM Institute of Management, GITAM University, Visakhapatnam, during the Academic year 2012-13. This project report has not been submitted to any other University or Institution for the award of any Degree/Diploma/Certificate.

Place:

Signature of Guide:

Date:

Acknowledgement:

I like to express my profound gratitude to Prof. K. Siva Rama Krishna,Dean & Principal, GIM, and GITAM UNIVERSITY for giving me the opportunity to do this project work I extend my heartfelt thanks to Prof. P. Sheela, Vice Principal GIM, and GITAM University who has been a staunch pillar of support to do the project. I take this opportunity to acknowledge my sincere thanks to Mrs.Dr.Manju jose,Programme Coordinator of BBM whose cooperation and valuable guidance helped me to enhance my knowledge in completing my project report. With my immense pleasure I would like to express my sincere thanks to my project guide Dr. P.Asha for giving me this opportunity to successfully complete my project work. I would humbly thank the representatives and employees of and all those individuals who made this study making it a success, giving their support directly and indirectly.

Contents

Page No.

Chapter - 1

Introduction to consumer preferences and Marketing management Consumer preference Topic related concepts

7-10 8 9 10 12-16 12 13 14 15 17-24 17 20 24 25-33 34-37 35 36 37 39 40

Chapter- 2

Methodology Need of the study Objectives of the study Scope of the study Research Design

Chapter 3

Profile of PepsiCo. Profile of food and beverage industry Profile of PepsiCo Profile of consumer preference

Chapter - 4 Chapter- 5

Analysis Findings, Suggestions and Conclusion Findings Suggestions Conclusion annexure bibilography

EXECUTIVE SUMMARY

This project was performed for the partial fulfillment of the requirements of Bachelor of Business Management. The topic for the project is A study of the sales of Pepsi products in Naval Base, Visakhapatnam. The aim of this project is to find out which snack and beverage products of PepsiCo Company are most popular in the survey area. Also to find out whether customers look at nutritional value while purchasing snack and beverage products. The aim of this project is also to find out what qualities makes customers go for Pepsi products, and also to find out whether customers prefer Pepsi products over products by Coca Cola.

Chapter 1

Introduction to consumer preferences and marketing management

Marketing Management:

Definition 1:
Marketing can be defined as an organizational function & a set of processes for creating, communicating &delivering value to the customers & for managing customers relations in ways that benefit the organization & the stake holders.

Definition 2:
It has also been defined as the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value.

Importance of marketing:
Financial success of any organization depends upon the marketing ability of that organization. There should be sufficient demand for products and services of a company, so that it can make profit. Thus many companies created chief marketing officer (CMO) position to put marketing on a more equal footing with other e-level executives. Marketing is tricky, and large well known business such as Levis, Kodak, Xerox etc. had to rethink their business models. Even Microsoft, Wal-Mart, Nike, who are market leaders cannot relax. Thus, we can say that making the right decision is not easy and marketing managers must take major decisions about the features of the product prices and design of the product, where to sell products and expenditure on sales and advertising. Good marketing is no accident. It is a result of careful planning and execution. Marketing practices must be refined continuously to increase the chances of success. But marketing excellence is rare and difficult to achieve and is a never ending task. E.g. NIRMA The brand icon of the young girl has adorned the package of Nirma washing powder. The jingle has become one of the enduring times in Indian advertising.

Difference between marketing and selling

S. No 1.

Selling starts with the seller and the Marketing starts with the buyer and needs of needs of the seller buyer Seeks to quickly convert products into Seeks to convert customer needs into cash. products Seller is the centre of business universe Buyer is the centre of the business universe

2.

3.

4.

Views Business as a goods producing Views businesses as a customer satisfying process process. Seller preference determines the formulation of marketing mix. Selling is product oriented Buyer determines the shape marketing mix should take. Marketing is customer oriented.

5.

6.

7.

Sellers motives dominate marketing communication

Marketing communication is looked upon as a tool for communicating the benefits / satisfactions provided by the product.

Consumer Preference:

The individual consumer has a set of preferences and values whose determination are outside the realm of economics. They are no doubt dependent upon culture, education, and individual tastes, among a number of other factors. The measure of these values in this model for a particular good is in terms of the real opportunity cost to the consumer who purchases and consumes the good. If an individual purchases a particular good, then the opportunity cost of that purchase is the forgone goods the consumer could have bought instead.

Theory of consumer preference:

Consumer preferences are defined as the subjective (individual) tastes, as measured by utility, of various bundles of goods. They permit the consumer to rank these bundles of goods according to the levels of utility they give the consumer. These preferences are independent of income and prices. Ability to purchase goods does not determine a consumers likes or dislikes. One can have a preference for Porsches over Fords but only have the financial means to drive a Ford.

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Topic Related Concepts:

a:) Customer Satisfaction: The project tries to find out whether the customers are satisfied with Pepsi products, and how well do they rate a Pepsi product. b:) Brand image: The project also tries to find about Pepsis brand image, and whether People go for Pepsi products, because it is a popular and trustworthy brand. c:) Price Sensitivity: The project also tries to find, whether price of Pepsi products affects their sales. d:) Sensitivity to quality: The project also tries to determine whether people look at quality, while purchasing Pepsi products e:) Influence of Advertisements: The project also tries to determine whether people are influenced by advertisements, to go for Pepsi products f:) Competition: The project also tries to determine, whether people prefer some of the Pepsi products, over products by Coca Cola.

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Chapter 2 Methodology

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Need of the Study:

-Very few surveys on the sales of Pepsi products in Naval Base, Visakhapatnam have been carried out.

- Also, very little data on the popularity of various Snack and Beverage products is available.

- Also, there is also very little information on what qualities do customers look at while buying such products and whether they look at nutritional value, price, or popularity of brand.

- There is no clear information about the popularity of the Pepsi brand in the survey area.

- Lastly, this survey is a part of the project to be carried as part of the minor project. The main aim of this survey is to give the student performing it experience and practical knowledge, which will help the student in his career as a future manager.

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Objectives of the Study: - To find out which fizzy drinks by PepsiCo are most popular among the customers in the survey area - To find out what factors do they look at while purchasing fizzy drinks.

- To find out whether look at nutritional value while purchasing snacks and beverages. To find out whether they were people were influenced by the youngisthan advertisements to go for Pepsi.

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Scope of the Study:

The survey was carried inside a limited area, and data for the project was obtained from that area only.

The number of questionnaires distributed is limited, and thus the data obtained for a larger number of people could differ.

The aim of the project is to find out which snack and beverage products by PepsiCo are most popular. Also to find out whether customers look at nutritional value while purchasing snack and beverage products.

And to find out what qualities make customers go for Pepsi products.

15

Research Design:

Data Collection Method: The data was collected through questionnaires, which were prepared online. Requests were sent, and people were asked to fill up the questionnaires online. The questionnaires were also put up in facebook, where people were told about the survey, and were told to give their replies.

Data Tabulation Method: Once the data was collected, it was organized in the form of pie charts, and the respective values were entered.

Analysis Method: After being put up in the form of pie charts, an analysis of 5-6 lines was written for each question was written.

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Chapter 3 Profile of PepsiCo.

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Profile of food and beverage industry:

Industry: Foods, Beverages -Over the past few years, the food and beverages industry has grown into a multi trillion dollar industry. - The entry of multinationals, rise in commodity branding and low cost of technology has changed the economics of the industry. -The fast growth rates in countries such as India, China, Brazil and Vietnam has resulted in billions of people being able to consume more food and beverage products. - Names like Coca Cola, Starbucks and McDonalds have become familiar to most people.

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Subsets of the Industry: A:) Production:

Consists of those businesses, which are involved in the production and collection of commodities such as wheat, soya beans and rice. E.g. Tyson foods.

B:) Processing:
Dedicated to processing raw material foods into forms that may be more easily distributed and sold to consumers. Food related companies: i:) Kraft Foods ii:) H.T Heinz Company Beverage Companies: i:) Coca-Cola Company ii:) Pepsico

C:) Distribution:
Responsible for putting finished products in the hands of customers. E.g. McDonalds, Yum!Brands, etc.

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Profile of PepsiCo:
Organization PepsiCo

Traded as

NYSE :PEP NASDAQ:PEP S&P 500 Component North Carolina, USA Indra Nooyi (Chairman & CEO)

Founded Key People

Revenue

US$ 57.8 Billion

Operating Income

US $ 8.332 Billion(2010)

Net Income

US$ 6.338 Billion (2010)

Total Assets

US$ 68.153 Billion

Total Equity Employees Website

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US$ 21.476 Billion 294,000 (2010) www.pepsico.com

Vision Statement: PepsiCos responsibility is to be continually improving all aspects

of the world in which we operate- environment, social-creating a better tomorrow than today. - Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

Mission Statement: Our mission is to be the worlds premier consumer Products

Company focused on convenient foods and beverages. - We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate and in everything we do, we strive for honesty, fairness and integrity.

Objective: At PepsiCo, were committed to achieving business and financial success

while leaving a positive imprint on society-delivering what we call performance with purpose. -Our approach to superior financial performance is straightforward- drive shareholder value. - By addressing social and environmental issues, we also deliver our purpose agenda, which consists of human, environmental issues; we also deliver on our purpose agenda, which consists of human, environmental, and talent sustainability

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About PepsiCo:

-Based on net revenue, PepsiCo is the second largest food and beverage business in the world. -Within North America, it is ranked as the largest food and beverage business. -As OF 2009, 19 of PepsiCos product lines generated retail sales of more than $1 billion each, And The companys products were distributed across more than 200 countries, resulting in annual net revenues of $ 43.3 billion.

List of Subsidiaries:
1:) Frito-Lay 2:) Gatorade 3:) Quaker Oats 4:) Tropicana 5:) Elma Chips (Brazil)

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Divisions:

1:) PepsiCo Americas 2:) Foods PepsiCo 3:) Americas Beverages 4:) PepsiCo Europe 5:) PepsiCo Asia 6:) Middle East and Africa

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Topic Profile of the Organization:

-This project is a general survey on customer preferences towards Pepsi products in naval base, Visakhapatnam. -The aim of this project is to find out the popularity of Pepsi products among the customers. -Also, to see whether customers look at nutritional value while purchasing snacks and beverages. -Also, the project aims to find out which snack products, produced by the company are most popular among customers in the survey area. -The project also tries to find out how the customers rate a Pepsi Product and whether they are fully satisfied with the product or not. -The project also tries to find out what makes the customers go for a Pepsi product, whether it is the brand image, the cost or the fact that they are easily available in stores. -Also, to find out whether the youngisthan advertisements influenced people to go for Pepsi. -Lastly to find out whether customers prefer Pepsi products over those of coca cola.

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Chapter 4 Analysis

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Q1: Whats your favorite fizzy drink brand?

A:) Pepsi B:) Coke C:) Others

Favourate Fizzy Drink Brand

60 50 40 30 20 10 0 Pepsi Coke Others

According to the Data collected, Coke have been voted as the most popular Fizzy drinks with 50 people. Pepsi has been voted as the second most popular drink with 40 people.

Others has been voted as the third most popular drink with 10 people.
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Q2: Do you look at nutritional value while purchasing fizzy drinks?

A:) Yes B:) No

Do you look at nutritional value while purchasing fizzy drinks?

70 60 50 40 30 20 10 0 YES NO YES , 34 NO , 63 Do you look at nutritional value while purchasing fizzy drinks?

Out the total people Surveyed, 34 said they looked at nutritional value while purchasing fizzy drinks. 63 people said that they did not look at nutritional value while purchasing fizzy drinks. Yes 35.05% No 64.95%

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Q3: Which of the following attributes makes you to purchase Pepsi?

A:) Brand

B:) Fizzyness C:)Sweetness

D:)Thirst quenching

Which of the following attributes makes you to purchase pepsi ?

30 25 20 15 10 5 0

Which of the following attributes compel you to purchase pepsi ?

-26 people have said that Fizzyness compels them to purchase Pepsi -20 people have said that they consume Pepsi for Thirst Quenching. -14 people have said that they consume Pepsi because of the Brand. -13 people have said that they consume Pepsi because of the sweetness. -11 people have said that that the reputation of the drink makes them go for Pepsi. -6 people go for Pepsi because of the shape and size of the bottle, 6 for the price, and 8 because of the availability.

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Q4: What type of Pepsi do you usually consume?

A:) Diet Pepsi B:) Pepsi (Regular)

Which type of Pepsi do you usually consume ?

70 60 50 40 30 20 10 0 Diet Pepsi 32.65% Pepsi(Regular) 67.35 Which type of Pepsi do you usually consume ?

-32 people said that they preferred Diet Pepsi. -66 people that they preferred the regular Pepsi. These results indicate that a majority of the people in the survey area do not look at nutritional value before purchasing Pepsi.

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Q5: Which size bottle of Pepsi do you usually consume?

A) Small B) Medium C) Large

60 50 40 30 20 10 0

Which size bottle of Pepsi do you usually consume?

Which size bottle of Pepsi do you usually consume?

- Small 26.42%

Medium 51.89%

Large 21.70

28 People have said that they usually go for a small sized Pepsi bottle. A majority of 55 people have said that they go for a medium sized Pepsi bottle. 23 People have said that they usually go for a large sized Pepsi bottle.

From the replies, we can conclude that a majority of people in the survey area prefer to go for a medium sized Pepsi bottle.
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Q6: How would you rate a Pepsi product?

A:) Excellent B:) Very Good C:) Good D:) Satisfactory How would you rate a Pepsi product?
40 35 30 25 20 15 10 5 0 Excellent 26.26% Very good 13.13% Good 38.38% Satisfactory Poor 7.07% 15.15% How would you rate a Pepsi product?

E:) Poor

A majority of people have rated Pepsi products to be good. 26 people have rated Pepsi products excellent. 15 people have rated Pepsi products Satisfactory. 13 people have voted Pepsi products as very good, and only 7 people have voted them as Poor.

Thus from the above data, we can conclude that a majority of the people have rated Pepsi products as Good, and are thus fairly satisfied with the products.

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Q7: Which drink do you prefer the most?

A) Health drink B) Cool drink C) Fruit juice

Which drink do you prefer the most?

50 45 40 35 30 25 20 15 10 5 0 Health drink Cool drink Fruit juice Which drink do you prefer the most?

-43 People said that they prefer health drink the most. it was clearly voted as the most preferred snack brand. - 29 People said that they preferred cool drink the most. it was voted as the second most popular food brand. - Fruit juice was chosen as the most preferred snack by 16 people each.

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Q8: Did the Youngisthan advertisements motivate you to go for Pepsi?

A) Yes B) No

Did the youngisthan advertisments encourage you to go for Pepsi?

53 52 51 50 49 48 47 46 45 44 Yes 52.53% No 47.47% Did the youngisthan advertisments encourage you to go for Pepsi?

- 52 People said that the Youngisthan advertisements encouraged them to go for Pepsi, and 47 people said that they were not influenced by the advertisements. -Thus the number of people who say that they were influenced by the advertisements is marginally greater than the people who werent.

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Chapter 5 Findings, suggestions, Conclusion, Bibliography and Annexure

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Findings:

-7UP and Coca Cola and Pepsi are the most popular fizzy drinks in the survey. - A majority of the people preferred Fanta over Mirinda. - A majority of the people preferred 7UP over Sprite. - A majority of the people surveyed have voted Lays as their preferred snack brand. Kurkure is the second most preferred snack brand. - Around 65% of the people surveyed DO NOT look at nutritional value while purchasing fizzy drinks. - Around 67% of the people surveyed prefer the regular Pepsi over Diet Pepsi. -56.57% of the people said that they DID NOT prefer the new baked lay over the old one. - Thirst Quenching and Fizzyness is the main reason which compels customers to purchase fizzy drinks. - A majority of the people said that they liked products like Pepsi, Lays, Tropicana and 7UP because they are reasonable priced, and they are popular and trustworthy brands. -38.38% of the rated Pepsi products as good. - 52% of the people surveyed were influenced by the youngisthan advertisements to go for Pepsi. - Around 51% of the people usually purchase the medium sized Pepsi bottle.

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Suggestions:
7UP and Pepsi have been voted as the most popular fizzy drinks in the area. They should sell more, and their stocks must be adequately maintained in the market. A majority of the people surveyed prefer the usual Pepsi over the diet Pepsi. Thus usual Pepsi can be promoted.

Lays and kurkure have been chosen as the most popular snack brands. However Cheetos and Uncle Chips are not doing very well. Therefore the company can focus on Lays and Kurkure in the area, and the other two snack products can be disinvested in. A significant number of people have said they were influenced by the Youngisthan advertisements, which indicates that it is popular among the young. As we know that Pepsi always tries to show itself as something that is new, and for the young. They have always endorsed the youth icons (Katy Perry of late) to reinstate this.

Since more than half of the people surveyed prefer the medium sized Pepsi bottler, the supplies for that size can be increased.

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Conclusions:
7UP and Pepsi have been voted as the most popular fizzy drink brands. A majority of the people surveyed do not look at nutritional value while purchasing snacks and beverages.

Lays has been voted as the most popular snack brand in the survey area, followed by Kurkure. Fanta is preferred over Mirinda, and 7UP is preferred over Sprite.

A majority of people were influenced by the youngisthan advertisements to go for Pepsi. Thirst Quenching and Fizzyness are the main reasons why people want to go for Pepsi.

A majority of the people usually go for the medium sized Pepsi bottle. A majority of the people rate Pepsi products as good.

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Annexure

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Q1: Whats your favorite fizzy drink brand?

A:) Pepsi B:) Coke C:) Others

Q2: Do you look at nutritional value while purchasing fizzy drinks?

A:) Yes B:) No

Q3: Which of the following attributes compel you to purchase Pepsi

A:) Brand B:) Fizzyness C:)Sweetness D:)Thirst quenching

Q4: What type of Pepsi do you usually consume?

A:) Diet Pepsi B:) Pepsi (Regular)

Q5: Which size bottle of Pepsi do you usually consume?

A) Small B) Medium C) Large

Q6: How would you rate a Pepsi product?

A:) Excellent B:) Very Good C:) Good D:) Satisfactory E:) Poor

Q7: Which drink do you prefer the most?

A) Health drink B) Cool drink C) Fruit juice

Q8: Did the Youngisthan advertisements motivate you to go for Pepsi?

A) Yes B) No

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Bibliography:
1) Industrial Profile: Sites visited: A) Wikipedia encyclopedia B) www.rncos.com C) www.wikinvest.com 2) Organization Profile Sites visited: A) www.pepsico.com B) Wikipedia Encyclopedia C) www.bitpipe.com

3) Marketing management

A) http://www.gurukpo.com/admin/bookpdf/56.pdf

4) Consumer preference A) http://www.usi.edu/business/cashel/331/consumer.pdf

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