Professional Documents
Culture Documents
ON
CUSTOMERS PERCEPTION TOWARDS FMCG (COKE &
PEPSI BREVAGES)
Academic session
[2009-2011]
Submitted For the partial fulfillment of pgdm 2ND
YEAR programme
Under Guidance of:
Submitted by:
Dr. SURINDER MIGLANI
PRIYANKA kushboo
KUMARI
(Faculty of AIT)
MS2009108
Roll No:
PGDM (GEN)
2nd YEAR
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DECLARATION
I herby certify that the survey, data collection and analysis work related to
research project on Consumer Perception of FMCG (Coke & Pepsi)
Brevages has been carried out exclusive on my own efforts under the
supervision of Dr.Surinder Miglani (Faculty of Management AIT, Greater
Noida).
I hereby declare that this work was neither published nor submitted to
any other institution.
(Signatur
e)
KUMARI
PRIYANKA KHUSBOO
Roll No:
MS2009108
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SUPERVISIORS
CERTIFICATE
I herby certify that the survey, data collection and analysis work related to
research project on Customer Perception of FMCG (Coke & Pepsi) for
creating has been carried out exclusive on my own efforts under the
supervision of Dr.Surinder Miglani (Faculty of Management AIT, Greater
Noida).
I hereby declare that this work was neither published nor submitted to
any other institution.
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DIRECTORS CERTIFICATE
This is to certify that research project title Consumer perception of
FMCG ( Coke & Pepsi Brevages ) is carried by KUMARI PRIYANKA
KHUSBOO student of PGDM II at AIT, School of Management, and
Greater Noida under the supervision of Dr. SURINDER MIGLANI.
This is an original work carried out by the said student to the best of my
recommended for the submission of this research project.
Executive-Director
(Prof.R.K.Verma)
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knowledge and I
ACKNOWLEDEMENT
Sometimes our light goes out,
But is blown into flame by another human being.
I owe deepest thanks,
To those who have rekindled this light
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Lastly, I would like to thank the almighty and my parents for their moral
support and my friends with whom I shared my day-to-day experience and
received lots of suggestions that improved my quality of work.
PREFACE
Learning categories you and practicing on that learning specializes you
Practical aspect gives more knowledge and experience than the theory and
no learning can be completed without practical aspects. This project report
has been in partial fulfillment of my post graduate diploma in management
(PGDM). In days when it was business as usual companies could succeed by
their new products with concept and supported by hard selling and good
advertisement
and
consider
that
customer
exhibit
varying
diverse
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Date:
Place:
CONTENTS
Serial
No
1.
2.
3.
4.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
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Topic
Declaration
Supervisor Certificate
Director Certificate
Acknowledgement
Preface
Introduction
Objective & Research Methodology
Company Profile An Overview
Product Detail
Limitation
Assumption
Data analysis & Interpretation
Findings
Recommendation
Conclusion
Bibliography
Annexure
Page No.
3
4
5
6
7
9-12
13-14
15-34
35
36
37
38-49
50
51
52
53
54-58
INTRODUCTIO
N
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Introduction
Now a days retailing is a biggest market in the world. Every man who living
in the society, he/she is also in need of purchasing any of the commodity
threw retailing Retailing is the worlds largest private sector contributing to
8% of the GDP and it employs one sixth of the labor force. The estimated
retail trade is expected to be 7 trillion US $. Many countries have developed
only due to retailing and presently we see there is a vast change in the retail
industry. As far as India is concerned it contributes to 14% of our GDP and it
is the second largest sector next to agriculture which provides employment
to more number of persons. Now according to a survey, India is classified in
to the fifth most attractive retail destination and second among the countries
in Asia. Worldwide it is ranked as fifth most attractive retail destination. The
word retail has come from a French word Retailer which means to cut off a
piece. Retailing includes all activities involved in selling the products and
services to the ultimate consumers. So this is said to be the last person in
the channel of distribution. Retail Sector can basically be classified in to two
segments. One is organized segment and another one is unorganized
segment. As far as India is concerned this organized segment contributes
only to 3% of the retail trade and the unorganized segment contributes to
remaining 97% of the retail trade. Why is it so?? Because all these days we
have been purchasing only from the street vendors and from the local shops
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and organized retailing was not in vogue in India. Only after 1991, after
opening up of economy and due to liberalization, this organized sector has
come to light and presently it exists in various formats like; Super markets,
Hypermarkets, Departmental stores, Specialty stores etc.
FMCG SECTOR
Products which have a quick turnover, and relatively low cost are known as
Fast Moving Consumer Goods (FMCG). FMCG products are those that get
replaced within a year. Examples of FMCG generally include a wide range of
frequently purchased consumer products such as toiletries, soap, cosmetics,
tooth cleaning products, shaving products and detergents, as well as other
non-durables such as glassware, bulbs, batteries, paper products, and plastic
goods. FMCG may also include pharmaceuticals, consumer electronics,
packaged food products, soft drinks, tissue paper, and chocolate bars. Indias
FMCG sector is the fourth largest sector in the economy and creates
employment for more than three million people in downstream activities. Its
principal constituents are Household Care, Personal Care and Food &
Beverages. The total FMCG market is in excess of Rs. 85,000 Crores. It is
currently growing at double digit growth rate and is expected to maintain a
high growth rate. FMCG Industry is characterized by a well established
distribution network, low penetration levels, low operating cost, lower per
capita consumption and intense competition between the organized and
unorganized segments. The Rs 85,000-crore Indian FMCG industry is
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Objective of Study
RESEARCH METHODOLOGY
The study mainly depended upon the primary data. However, some secondary sources of data
will also consult for the purpose of gathering background information supporting the study.
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Relevant primary data will be collected through a sample survey using a well-structured
questionnaire. The draft questionnaire will be given to 100 respondents.
Sampling region
Sampling region will be GREATER NOIDA of UTTAR PARDESH.
RESEARCH INSTRUMENT
Questionnaire
As the questionnaire is self administrated one, the survey will be simple and
user friendly. Words used in questionnaire will be readily understandable to
all respondent. Also technical jargons will be avoided to ensure that there is
no confusion for respondents.
Data Analysis
Data analysis is done with the help of different statistical tools :
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CHARTS
Column Charts
Bar Charts
Pie Charts
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COMPANY
PROFILE AN
OVERVIEW
OVERVIEW OF SECTOR AND COMPANY
PROFILE
The Indian retail industry is divided into organized and unorganized sectors.
Organized retailing refers to trading activities undertaken by licensed
retailers, that is, those who are registered for sales tax, income tax, etc.
These include the corporate-backed hypermarkets and retail chains, and also
the privately owned large retail businesses. Unorganised retailing, on the
other hand, refers to the traditional formats of low-cost retailing, for
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example, the local kirana shops, owner manned general stores, paan/beedi
shops, convenience stores, hand cart and pavement vendors, etc. Indias
retail sector is wearing new clothes and with a three-year compounded
annual growth rate of 46.64 per cent, retail is the fastest growing sector in
the Indian economy. Traditional markets are making way for new formats
such as departmental stores, hypermarkets, supermarkets and specialty
stores. Western-style malls have begun appearing in metros and second-rung
cities alike, introducing the Indian consumer to an unparalleled shopping
experience. The Indian retail sector is highly fragmented with 97 per cent of
its business being run by the unorganized retailers like the traditional family
run stores and corner stores. The organized retail however is at a very
nascent stage though attempts are being made to increase its proportion to
9-10 per cent by the year 2010 bringing in a huge opportunity for
prospective new players. The sector is the largest source of employment
after agriculture, and has deep penetration into rural India generating more
than 10 per cent of Indias GDP.
Now a days retailing is a biggest market in the world. Every man who living
in the society, he/she is also in need of purchasing any of the commodity
threw retailing Retailing is the worlds largest private sector contributing to
8% of the GDP and it employs one sixth of the labor force. The estimated
retail trade is expected to be 7 trillion US $. Many countries have developed
only due to retailing and presently we see there is a vast change in the retail
industry. As far as India is concerned it contributes to 14% of our GDP and it
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Retailing Formats
Modern retailing has entered India in form of sprawling malls and huge
complexes offering shopping, entertainment, leisure to the consumer as the
retailers experiment with a variety of formats, from discount stores to
supermarkets to hypermarkets to specialty chains. However, kiranas still
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service,
efficient
merchandising
and
timely
promotional
campaigns. The modern retail formats are encouraging development of wellestablished and efficient supply chains in each segment ensuring efficient
movement of goods from farms to kitchens, which will result in huge savings
for the farmers as well as for the nation. The Government also stands to gain
through more efficient collection of tax revenues. Along with the modern
retail formats, the non-store retailing channels are also witnessing action
with HLL initiating Sangam Direct, a direct to home service. Network
marketing has been growing quite fast and has a few large players today.
Gas stations are seeing action in the form of convenience\stores, ATMs, food
courts and pharmacies appearing in many outlets. In the coming years it can
be said that the hypermarket route will emerge as the most preferred format
for international retailers stepping into the country. At present, there are 50
hypermarkets operated by four to five large retailers spread across 67 cities
catering to a population of half-a-million or more. Estimates indicate that this
sector will have the potential to absorb many more hypermarkets in the next
four to five years.
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population, lower real estate costs, fewer power cuts and lower levels of
attrition. However, retailers need to adjust their product mix for smaller
cities, as they tend to be more conservative than the metros. In order for the
market to grow in modern retail, it is necessary that steps are taken for
rewriting laws, restructuring the tax regime, accessing and developing new
skills and investing significantly in India.
Retail Landscape
Modern retail development in India is focused on the following cities:
West
Mumbai
Pune
Ahmadabad
North
South
Chennai
Bangalore
Hyderabad
East
Kolkata
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Taiwan - 81%
Malaysia - 55%
Thailand - 40%
Brazil - 36%
Indonesia - 30%
Poland - 20%
China-20%
India - 3%
Detergents
The size of the detergent market is estimated to be Rs. 12,000 Cr. Household
care segment is characterized by high degree of competition and high level
of penetration. With rapid urbanization, emergence of small pack size and
sachets, the demand for the household care products is flourishing. The
demand for detergents has been growing but the regional and small
unorganized players account for a major share of the total volume of the
detergent market. In washing powder HUL is the leader with ~38 per cent of
mar-ket share. Other major players are Nirma, Henkel and Proctor & Gamble.
Personal Care
Skin Care
The total skin care market is estimated to be around Rs. 3,400 Cr. The skin
care market is at a primary stage in India. The penetration level of this
segment in India is around 20 per cent. With changing life styles, increase in
disposable incomes, greater product choice and availability, people are
becoming aware about personal grooming. The major players in this segment
are Hindustan Unilever with a market share of 54 per cent, followed by Cavin
Kare with a market share of 12 per cent and Godrej with a market share of 3
per cent.
Hair Care
The hair care market in India is estimated at around Rs. 3,800 Cr. The hair
care market can be segmented into hair oils, shampoos, hair colorants &
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conditioners, and hair gels. Marico is the leader in Hair Oil segment with
market share of 33 per cent; Dabur occu-pies second position at 17 per cent.
Shampoos
The Indian shampoo market is estimated to be around Rs. 2,700 Cr. It has the
penetration level of only 13 per cent in India. Sachet makes up to 40 per cent
of the total shampoo sale. It has low penetration level even in metros. Again
the market is dominated by HUL with around 47 per cent market share; P&G
occupies second position with market share of around 23 per cent.
Antidandruff segment constitutes around 15 per cent of the total shampoo
market. The market is further expected to increase due to increased
marketing by players and availability of shampoos in affordable sachets.MCG
SECTOR
Oral Care
The oral care market can be segmented into toothpaste - 60 per cent;
toothpowder - 23 per cent; toothbrushes - 17 per cent. The total toothpaste
market is estimated to be around Rs. 3,500 Cr. The penetration level of
toothpowder/toothpaste in urban areas is three times that of rural areas. This
segment is dominated by Colgate-Palmolive with market share of ~49 per
cent, while HUL occupies second position with market share of 30 per cent.
In toothpowders market, Colgate and Dabur are the major players. The oral
care market, especially toothpastes, remains under penetrated in India with
penetration level 50 per cent.
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Coffee
The Indian beverage industry faces over supply in segments like coffee and
tea. However, more than 50 per cent of the market share is in unpacked or
loose form. The major players in this segment are Nestl, HUL and Tata Tea.
set up by government approval and use of foreign brand names is now freely
permitted.
28ECTO
Sectoral Opportunities
Major Key Sectoral opportunities for Indian FMCG Sector are mentioned
below:
Dairy Based Products
India is the largest milk producer in the world, yet only around 15 per cent of
the milk is processed. The organized liquid milk business is in its infancy and
also has large long-term growth potential. Even investment opportunities
exist in value-added products like desserts, puddings etc.
Packaged Food
Only about 10-12 per cent of output is processed and consumed in packaged
form, thus highlighting the huge potential for expansion of this industry.
Oral Care
The oral care industry, especially toothpastes, remains under penetrated in
India with penetration rates around 50 per cent. With rise in per capita
incomes and awareness of oral hygiene, the growth potential is huge. Lower
price and smaller packs are also likely to drive potential up trading.
Beverages
Indian tea market is dominated by unorganized players. More than 50% of
the market share is capture by unorganized players highlighting high
potential for organized players.
Jan, 2MCG SECTOR
Company Prospects
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Dabur has acquired 72.15 per cent of Fem Care Pharma Ltd (FCPL), a
leading player in the womens skin care products market, for Rs 203.7
Crores in an all-cash deal. The Company is expected to create synergy
by this deal.
Dabur got approval from Government of Himachal Pradesh to set up
another medicine manufacturing unit. The project has an expected
investment of Rs. 130 Crores.
Colgate-Palmolive (India) Limited
Colgate Palmolive (India) Ltd, which is currently holding 75 per cent of
the share capital of SS Oral Hygiene Products Private Ltd, Hyderabad,
has acquired the remaining 25 per cent share capital from the local
shareholders at an aggregate price of Rs 77.70 lakh. Consequently, SS
Oral Hygiene Products has become a wholly owned subsidiary of the
company.
Nestle India Limited
Nestle is planning to invest Rs 6 billion in India in 2009 for expansion
of its business in the country. The company which has allotted an
investment of Rs 3 billion in the Indian market in 2008, would be
doubling the investment in 2009 as part of its business strategy.
Nestle International is reinvesting and expanding in India and Nestle
India will have all the financial resources to expand and grow from the
parent company.
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Nestle India reported a good increase in its standalone net profit for
the second quarter. During the quarter, the profit of the company rose
26.54% to Rs 1,210.90 million from Rs 956.90 million in the same
quarter, last year. The company posted earnings of Rs 12.56 a share
during the quarter, registering 26.61% growth over prior year period.
Net sales for the quarter rose 23.45% to Rs 10,356.30 million, while
total income for the quarter rose 23.78% to Rs 10,423.40 million,
when compared with the prior year period.
Pepsi was founded in New York in 1965. Its head quarter is in Purchase,New
York. It is Producing Non-alcoholic beverage and Food processing items. As
my topic is Nonalcoholic beverage so I am only focusing on that only. Pepsi is
a carbonated beverage that is produced and manufactured by PepsiCo. It is
sold in retail stores, restaurants,cinemas and from vending machines. The
drink was first made in the 1890s by pharmacist Caleb Bradham in New
Bern, North Carolina. The brand was trademarked on June 16, 1903. Pepsi
arrived on the market in India in 1988.PepsiCo gained entry to India in 1988
by creating a joint venture with the Punjab government-owned Punjab Agro
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Industrial Corporation (PAIC) and Voltas India Limited. This joint venture
marketed and sold Lehar Pepsi until 1991, when the use of foreign brands
was allowed; PepsiCo bought out its partners and ended the joint venture in
1994. Others claim that firstly Pepsi was banned from import in India, in
1970, for having refused to release the list of its ingredients and in 1993, the
ban was lifted, with Pepsi arriving on the market shortly afterwards. These
controversies are a reminder of "Indias sometimes acrimonious relationship
with huge multinational companies." Indeed, some argue that PepsiCo and
The Coca-Cola Company have "been major targets in part because they are
well-known foreign companies that draw plenty of attention."
SLOGAN :
1961-1964: "Now It's Pepsi for Those Who Think Young" (jingle sung by Joanie
Sommers )
19641967: "Come Alive, You're in the Pepsi Generation" (jingle sung by Joanie
Sommers)
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19671969: "(Taste that beats the others cold) Pepsi Pours It On".
19691975: "You've Got a Lot to Live, and Pepsi's Got a Lot to Give"
19871990: "Pepsi's Cool" (commercial with Michael Jackson, featuring Pepsi version of
Bad)
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19901991: "You got the right one Baby UH HUH" (sung by Ray Charles for Diet Pepsi)
19901991: "Yehi hai right choice Baby UH HUH" (Hindi - meaning "This is the right
choice Baby UH HUH") (India)
19931994: "Right Now" (Van Halen song for the Crystal Pepsi advertisement)
19961997: "Pepsi: There's nothing official about it" (During the Wills World Cup
(cricket) held in India/Pakistan/Sri Lanka)
19992000: "For Those Who Think Young"/"The Joy of Pepsi-Cola" (commercial with
Britney Spears/commercial with Mary J. Blige)
1999-2006: "Yeh Dil Maange More!" (Hindi - meaning "This heart asks for more")
(India)
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20062007: "Why You Doggin' Me"/"Taste the one that's forever young" (Mary J. Blige)
20072008: "More Happy"/"Taste the once that's forever young" (Michael Alexander)
2000present: "pepsi ye pyaas heh bari" ((Urdu) meaning "There is a lot of thrist"
(Pakistan) 2008: "Pepsi Stuff" Super Bowl Commercial (Justin Timberlake)
2009present: "Yeh hai youngistaan meri jaan" (Hindi - meaning "This is our young
country my baby")
2010present: "Pode ser bom, pode ser muito bom, pode ser Pepsi" (Can be good, can be
very good, can be Pepsi) - Brazil.
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2011present: "Change the game" (Bangladesh, India for the 2011 Cricket World Cup)
2011-present "Dunya Hai Dil Walon Ki" (Pakistan-meaning World is For Lovers by Ali
Zafar
Ingredients
Pepsi-Cola contains basic ingredients found in most other similar drinks including carbonated
water, high fructose corn syrup, sugar, colorings, phosphoric acid, caffeine, citric acid, and
natural flavors. The caffeine-free Pepsi-Cola contains the same ingredients minus the caffeine.
Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending machines worldwide.
The Coca-Cola Company in Atlanta, Georgia produces it. It was incorporated in 1886. The CocaCola Company claims that it is sold in over 200 countries. The US soft-drink giant, Coca-Cola,
reentered India in the 1990s after abandoning its businesses in the late 1970s in the wake of
Foreign Exchange Regulation Act of 1973. The Act, meant to 'Indianize' foreign companies,
made it mandatory for foreign companies to dilute their shareholdings to 40 per cent. Instead of
diluting its shareholdings to the required limit prescribed by the Act, Coca-Cola opted to
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discontinue its operations in India. Coca-Cola is a leading player in the Indian beverage market
with and approximate 60 percent share in the carbonated soft drinks segment.
The US soft-drink giant, Coca-Cola, reentered India in the 1990s after abandoning its businesses
in the late 1970s in the wake of Foreign Exchange Regulation Act of 1973. The Act, meant to
'Indianize' foreign companies, made it mandatory for foreign companies to dilute their
shareholdings to 40 per cent. Instead of diluting its shareholdings to the required limit prescribed
by the Act, Coca-Cola opted to discontinue its operations in India.
Logo design
The famous Coca-Cola logo was created by John Pemberton's bookkeeper, Frank Mason
Robinson, in 1885. It was Robinson who came up with the name, and he also chose the logos
distinctive cursive script. The typeface used, known as Spenserian script, was developed in the
mid 19th century and was the dominant form of formal handwriting in the United States during
that period.
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PRODUCT DETAIL
Beverage product can be divided in two types:
Cola drinks
Soft drinks
Pepsi Products:
Pepsi
7UP
Mirinda
Dew
Slice
(cola drink)
(cola drink)
(soft drinks)
(cola drink)
(soft drinks)
Coke Products:
Coke
Mazza
Limca
Sprite
Fanta
Thums up
(cola drink)
(soft drinks)
(cola drink)
(cola drink)
(soft drinks)
(cola drink
Limitations
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One of the biggest limitations with this project work is the time
factor.
The sample size of 100 respondents is too small to find out the
ASSUMPTIONS
It is assumed that the chosen sample is the representation of whole population.
It is assumed that information provided by the samples is accurate and best of their
knowledge.
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Analysis of data
& interpretation
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REPRESENTATION
OF
DATA
THROUGH
CHART
RATIO OF MALE & FEMALE RESPONDANT
Total numbers of respondent were 100. So final date interpretation is done on
the basis of only 100 questionnaire.
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It is been observed that 16% of respondents are male and rest is female.
PROFILE OF RESPONDENTS
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MARKET
SHARE
OF
PEPSI
&
COKES
BREVERAGES
On the basis of above data coke is leading with 54% market share.
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Under the brand name of Pepsi, Pepsi is the capturing highest market share
with 29%, while slice is second market leader of Pepsi with 22% market
share.
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Under the brand name of coke Thumps up is market leader with 28% market share and Fanta is
second largest with 23% market share.
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It has been observed that thumps up and Pepsi hold maximum share (14%)
in comparison to others.
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EFFECT OF ADVERTISMENT
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BRNAD LOYALTY
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If the desired verity of beverage is not available at particular shop, how does
consumer respond?
It has been observed that 43% population is loyal towards their product.
CONSUMPTION OF BEVERAGES
How often people consume beverages
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Findings
As it was 1st research Project of my life, so it gave my lot of experience
which will be very helpful in my life as well as in my summer training.
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Recommendation
Though the coke is enjoying about 54% of the total market share and it is market leader
in Indian beverage industry. While with the 46 % market share Pepsi is on the second
step.
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If we are analyzing properly then we find Pepsi is small product portfolio than coke,
which is responsible for its second position.
Pepsi should increase its product portfolio to capture the Cokes market share.
Companies should focus on the taste of the product because 77% population is
influenced by taste only.
Young generation is the potential consumer so companies should more focus on them.
As we find that 40 % population consumes 200ml cold drinks. Which comes in glass
bottles, these bottles are being retuned back for refilling to companies? Which incurred
again cost of retransportation? If company start to supply 200 ml cold drinks in pet
bottles (plastic bottles) it will be good for company because 40% of population is using
only 200ml.
Conclusion
After the completion of project I have seen the different aspects of this
Project. Also I have gained some new experience about the consumer
research. While surveying I have met a large number people, with different
perceptions, with different nature, and as a result of this I have learnt a lot of
things like how to talk with the different people with different behavior. I am
benefited a lot and this will definitely help me a lot in my summer training as
well as in the future.
Also the outcome that came out from this research work is that in city Meerut
coke is the market leader with 54% market share. Pepsi is having only 46%
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market share.I come to know that Pepsi is the leading brand of Pepsi co. with
29% market share of its total market share and Thums up is the leading
brand of coke with 28% market share of itself.
Through this research I also come to know that young generation is the
potential market for beverage industry, taste is the 1st preference to
choosing the product and one more important factor that below 12 years and
above to 50years people like the soft drinks while people between 12- 30
year prefer cola drinks and rest people who comes in between 30 -50 year
have common.
BIBLIOGRAPH
Internet:
www.pepsi.com
www.google.com
www.wikipidia.com
www.pepsicenter,com
www.agencyfaqs.com
www.indiainfoline.com
www.pepsicoworld.com
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Books:
Magazines
Research papers
Kothari C.R., Research methodology, Tata McGraw
Luthy, J. (1998, March). New keys to employee performance and productivity,
Public Management, 4-8
Paul, A.C. (1985, November). Motivating local government employees with
incentives, Public Management, 32, 20-22
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ANNEXURE
Questionnaire
Respected Sir/Madam
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a) Pepsi
b) 7up
d) Dew
e) Slice
g) Mazza
g) Limca
i) Fanta
c) Mirinda
f) Coke
h) Sprit
j) Thums up
a) Taste
b) Advertisement
c) Easily available
d) People like
a) Once
b) twice
c) thrice
d) More than
three time
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a) 200ml
b) 300ml
c) 500ml
d) 2Lt
Please specify ( )
a) 0-10 thousands ( )
b) 10-15 thousands (
)
c) 15-20 thousands ( )
d) more than 20
thousands ( )
a) Student
b) Professional
c) Working
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a) 1-6 month
b) 6-12-month
c)1-2 year
d) more
than 2 year
brand
Please specify ( )
- Pepsi
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-7up
-Mirinda
-Dew
-Slice
-Coke
-Thumsup
- Limca
-Mazza
Name
:-
Age
:-
Occupation
:-
Address
:-
:-
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-Sprite
- Fanta