You are on page 1of 37

CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION:
Meaning of Consumer Buying behaviour:
Consumer buying behaviour is the sum total of a consumer's attitudes, preferences,
intentions, and decisions regarding the consumer's behaviour in the marketplace when
purchasing a product or service. The study of consumer behaviour draws upon social science
disciplines of anthropology, psychology, sociology, and economics.

About PepsiCo
PepsiCo products are enjoyed by consumers one billion times a day in more than 200
countries and territories around the world. PepsiCo generated more than $66 billion in net
revenue in 2014, driven by a complementary food and beverage portfolio that includes FritoLay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCos product portfolio includes a
wide range of enjoyable foods and beverages, including 22 brands that generate more than $1
billion each in estimated annual retail sales.
At the heart of PepsiCo is Performance with Purpose our goal to deliver top-tier financial
performance while creating sustainable growth and shareholder value. In practice,
Performance with Purpose means providing a wide range of foods and beverages from treats
to healthy eats; finding innovative ways to minimize our impact on the environment and
reduce our operating costs; providing a safe and inclusive workplace for our employees
globally; and respecting, supporting and investing in the local communities where we
operate.
Leadership through Performance with Purpose:
PepsiCo entered India in 1989 and in a short period, has grown into one of the largest MNC
food and beverage businesses in the country. PepsiCos growth in India has been guided by
Performance with Purpose, its goal to deliver top-tier financial performance while creating
sustainable growth and shareholder value. In practice, Performance with Purpose means
providing a wide range of foods and beverages from treats to healthy eats; finding innovative
ways to minimize our impact on the environment and lower our costs through energy and
water conservation, as well as reduced use of packaging material; providing a safe and

inclusive workplace for our employees globally; and respecting, supporting and investing in
the local communities where we operate.
Large investor in India with strong brands:
PepsiCo has been consistently investing in India, in the areas of product innovation,
increasing manufacturing capacity, ramping up market infrastructure, strengthening supply
chain and expanding companys agriculture programme. The company has built an expansive
beverage and snack food business supported by 37 beverage plants and 3 food plants. In two
decades, the company has been able to organically grow eight brands each of which generate
Rs. 1000 crores or more in estimated annual retail sales and are household names, trusted
across the country.

A growing portfolio of enjoyable and wholesome snacks and beverages:


PepsiCo Indias diverse portfolio reflects its commitment to nourish consumers with a diverse
range of fun and healthier products and includes iconic brands like Pepsi, Lays, Kurkure,
Tropicana, Gatorade and Quaker. In addition to the recently launched Lays Maxx, 7UP
Revive and Tropicana Slice Alphonso, the portfolio includes several healthier treats like
Quaker Oats, Tropicana juices, rehydrator Gatorade, Tata Water plus, Quaker flavoured oats
and Quaker Nutri Upma and Quaker Nutri Poha breakfast range with the power of
wholegrain.

Model partnership with over 24,000 farmers:


PepsiCo India has pioneered and established a model of partnership with farmers and now
works with over 24,000 happy farmers across nine states. More than 45 percent of these are
small and marginal farmers with a land holding of one acre or less. PepsiCo provides 360degree support to the farmer through assured buy back of their produce at pre-agreed prices,
quality seeds, extension services, disease control packages, bank loans, weather insurance,
and the latest technological practices. The association with PepsiCo India has not only raised
the incomes of small and marginal farmers, but also their social standing.

Global leader in water conservation:


In 2009, PepsiCo India achieved a significant milestone, by becoming the first business to
achieve Positive Water Balance in the beverage world, and has been Water Positive since
then. Through 2013, the company saved more that it consumed in its manufacturing
operations. The company made this possible through innovative irrigation practices like
direct seeding, community water recharging initiatives, and by reducing the consumption of
water in its manufacturing facilities. PepsiCo is lauded for its efforts for water conservation
and has received numerous awards such as CII National award for water management, Water
Digest award for water practices and Golden Peacock award for water conservation amongst
others.

Care for the environment:


PepsiCo India is now focused on reducing its carbon footprint. More than 40 per cent of its
energy is today generated from renewable sources such as bio mass and rice husk boilers and
wind turbines. Initiatives such as reduction in use of chemicals, eco-friendly packaging
initiatives and efficient waste management help reduce load on the environment. PepsiCo in
partnership with the NGO Exnora and local municipalities has also been working on a unique
waste collection and treatment program called Waste-to-Wealth. The award winning
programme has positively impacted more than 5, 00,000 people.

Exemplary employment practices:


PepsiCo India provides direct and indirect employment to almost 2, 00,000 people. The
company believes in providing employment and growth opportunities to local talent. Its
College of Leadership, ensures early identification of talent, and employees focused

development through critical experiences. PepsiCo firmly believes that encouraging diversity
means encouraging policies and systems that respect peoples special needs. Not only does
PepsiCo have a vibrant and diverse workforce, it takes the utmost care to make dynamic
business leaders of its employees and foster their career and personal growth through
differentiated experiences and a robust leadership development model.

About Coca-Cola:
Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,
Georgia, on May 8, 1886. Coca-Cola Company is the worlds leading manufacturer, marketer
and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly
400 beverage brands. It sells beverage concentrates and syrups to bottling and canning
operators, distributors, fountain retailers and fountain wholesalers. The Companys beverage
products comprises of bottled and canned soft drinks as well as concentrates, syrups and notready-to-drink powder products. In addition to this, it also produces and markets sports
drinks, tea and coffee. The Coca- Cola Company began building its global network in the
1920s. Now operating in more than 200 countries and producing nearly 400 brands, the CocaCola system has successfully applied a simple formula on a global scale: Provide a moment
of refreshment for a small amount of money- a billion times a day.
The Coca-Cola Company and its network of bottlers comprise the most sophisticated and
pervasive production and distribution system in the world. More than anything, that system is
dedicated to people working long and hard to sell the products manufactured by the
Company. This unique worldwide system has made The Coca-Cola Company the worlds
premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola,
more than any other consumer product, has brought pleasure to thirsty consumers around the
globe. For more than 115 years, Coca-Cola has created a special moment of pleasure for
hundreds of millions of people every day.
The Company aims at increasing shareowner value over time. It accomplishes this by
working with its business partners to deliver satisfaction and value to consumers through a
worldwide system of superior brands and services, thus increasing brand equity on a global

basis. They aim at managing their business well with people who are strongly committed to
the Company values and culture and providing an appropriately controlled environment, to
meet business goals and objectives. The associates of this Company jointly take
responsibility to ensure compliance with the framework of policies and protect the
Companys assets and resources whilst limiting business risks.

CONSUMER PREFERENCES:
The consumer market amounts to a total of 6.3 billion people, and thus there is great demand
for an enormous variety of goods and services, especially as consumers differ from one
another in that of age, gender, income, education level, and tastes. Moreover, the relationships
between different consumers, as well as their contact with other elements of the world
surroundings, affect their choice of products, services, and companies.
The reason why consumers buy what they do is often deeply rooted in their minds,
consequently consumers do not truly know what affects their purchases as ninety-five
percent of the thought, emotion, and learning [that drive our purchases] occur in the
unconscious mind- that is without our awareness. Consumers purchase process is affected by
a number of different factors, some of which marketers cannot control, such as cultural,
social, personal, and psychological factors.

CULTURAL FACTORS:
Culture is the set of basic values, perceptions, wants and behaviors learned by a member of
society from family and other important institutions, and is the primary reason behind a

persons wants and behavior. Although different societal groups have their own culture that
affects consumers buying behavior, the extent to which it influences the behavior might vary
from country to country. Each cultural group can be divided into groups consisting of people
with common life experiences and situations, also known as subcultures, such as nationality,
racial groups, religion, and geographical areas. The third cultural factor is social class, which
is constituted upon among other variables: occupation, income, education, and wealth.
SOCIAL FACTORS:
The second classification of factors affecting consumer behavior is social grouping, which is
composed of small groups, social roles and status, and family that affect all individuals to
some extent. Some of these groups have a direct influence on a person, i.e. membership
groups, groups that a person can belong to, and reference groups which serve as direct (faceto-face) or indirect points of comparison or reference in forming a persons attitudes or
beliefs. However, some people are affected by groups in which they do not belong to; these
reference groups include aspirational groups, groups that a person desires to belong to and a
fans admiration for an idol, etc. Finally, a wife, husband or a child have strong influences on
a consumer and thus the family is the most vital consumer buying organization in society.
PERSONAL FACTORS:
Consumers personal characteristics, like for instance age and life-cycle stage, occupation,
economic situation, lifestyle, as well as personality and self-concept influence consumers
buying behavior. Moreover, depending on a persons occupation and financial situation, as
well as the stage in life a person is in, his/her demands for products shift. A persons lifestyle
forms his/her world and the way he/she decides to act, thus a persons activities, interests, and
opinions constitute their lifestyle, as well as affecting the choice of products.
Moreover, all people are individual; hence have a unique personality of different
characteristics, which is often portrayed with traits, such as self-confidence, dominance,
sociability, autonomy, defensiveness, adaptability, and aggressiveness.
PSYCHOLOGICAL FACTORS:
Four objects constitute this group of factors, namely motivation, perception, learning, and
beliefs & attitudes. When a person is motivated, he/she acts accordingly and the actions taken

are affected by the persons perception of the situation. Perception is the individual selection,
organization and interpretation of the information which flows through peoples senses, and
consequently a meaningful picture of the world is formed. When people experience new
things, changes take place in their behavior, i.e. they learn new things when they take action.
As a result, beliefs and attitudes are acquired and hence affect the buying behavior.

CHAPTER 2
RESEACH METHODOLOGY

A. RESEARCH METHODOLOGY:
Methodology is the systematic analysis of the methods applied to a field of study. It
comprises the theoretical analysis of the body of methods and principles associated with the
branch of knowledge.
A methodology does not set out to provide solutions. Therefore, it is not the same thing
methods. Instead, it offers the theoretical base for understanding which method, set of
methods or so called best practices can be applied to specific case.
Merriam-Webster dictionary provide two definition on research methodology are as follow:
1.the analysis of the principles of methods, rule, and postulates employed by a
discipline
2.the systematic study of, methods that are, can be, or have been applied within a
discipline
FEATURES OF RESEACH METHODOLOGY:

Systematic process
Purpose of research methodology
Reliance on empirical evidence
Commitment to objectivity
Verifiability
Ethical neutrality
Development of principles and theories
Multipurpose activity
Use of induction and deduction methods

B. TYPE OF THE RESEARCH:


The research activity can be classified into different categories. Some of the main types of
research are as follow:

1.
2.
3.
4.
5.
6.
7.
8.

Basic research
Applied research
Descriptive research
Analytical research
Empirical research
qualitative research
quantitative research
other types of research

I have used descriptive research in this project the term descriptive research refers to provides
data about the population or universe being studied. But its only describe the who, what,
when, where and how of a situation. It does not describe what caused a particular situation.
The two most commonly types of descriptive research methods include observation method
and survey method. I am using survey method in this project.

C. OBJECTIVE OF THE RESEARCH:


The target of this research is to identify and discuss the two global companies, Coca Cola and
Pepsi Cola, which succeed to be the most known soft drinks companies in the world. And
also to know the consumer behaviour towards Pepsi and coca cola.

D. HYPOTHESIS:
The formulation of hypothesis is an important step in the formulation of research problem.
The hypothesis is a tentative proposition formulated to determine its validity. The hypothesis
may prove to be correct or incorrect. In any event, it lead to an empirical test. Whatever the
outcome, the hypothesis is a question put in such a way that an answer of some kind can be
forthcoming.
According to me Pepsi is more popular brand then the coca cola and many people prefer
Pepsi more than the coca cola.

E. DATA SOURCES:
There are two methods for collection of data
1. primary data
2. secondary data
The primary data are those, which are collected afresh and for the first time, and therefore it
happens to be original in character.

The secondary data are those which have already been collected by someone else and which
have been passed through the statical process
And I have used the both the methods to collect the data majority of the data is collected from
primary source. Secondary data collected from coca cola and Pepsi official websites.

F. SAMPLE SIZE:
Sampling size refers to a part of the universe is selected for obtaining information. Therefore,
sampling offers several advantages to the researcher.
The sample for this study consisted of 30 respondents. The selected respondents in the age
group of 25-55 years belonged to varied employment, gender and income groups. Convenient
sampling technique was applied in selecting respondents as sample.

G. LIMITATION OF STUDY:
Due to the time constraint and the limitation in the number of people who conduct the field
sampling, this research study is limiting field sampling to three locations only.

H. REVIEW OF LITERATURE:
Blattberg, Peacock, and Sen (1976, 1978):
Describe 16 purchasing strategy segments based on three purchase dimensions: brand loyalty
(single brand, single brand shifting, many brands), type of brand preferred (national, both
national and private label), and price sensitivity (purchase at regular price, purchase at deal
price).
Kretter,Kadekova et al (2010):

Country of the origin of food and consumer preference in segment of university students
consumers prefer the attributes like freshness, flavor and also the price. Consumer prefers
fruit juices because of their flavor and freshness.
Gupta & gupta (2008):
Fruit drinks: how healthy and safe discussed that fruit drinks are popularly used in most
urban households today markets are flooded with a large variety of juices e.g.; mango, apple,
guava, litchi. The main reason for increased consumption is changing lifestyles & rising level
of health consciousness among consumers and parents. They believe that these drinks provide
superior nutrition because of their status & high beverage cost.
Gupta parul (2003):
Studied the coke & Pepsis rural drive to push sales soft drink giants Coca-Cola & Pepsi have
signed on thousands of new retailers in a drive into rural India that has pushed up sales
steeply. Coca-Cola has made its beverages available in 40,000 additional villages in the last 3
years.
Jyoti k arun (2002):
Studies the Coca-Cola Indias marketing plan for the summer peak sales season is vested with
a rural thrust & rides on the back of its newly launched 200-ml bottle, priced between Rs. 5 to
Rs 6 across the country. While the soft drinks sales showed flat growth last year, sales in that
year are up by 80% for the company.

CHAPTER 3
ANALYSES AND INTERPRETATION

1. Do you drink cola-soft drinks?


Option
YES
No

Number of respondent
27
3

% of responses
90
10

10%

yes
no

90%

Interpretation:
After analysis I concluded that majority of the people that means 90% of the respondent are
drinking carbonate drinks in their daily life remaining 10% of the respondent are not drinking
carbonate drinks.

2. How many glasses do you drink per week?

Option
1
1-3
4-6
7-9
10

Number of respondent
6
14
9
1
0

% of responses
20
47
30
3
0

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
1

1-3

4-6

7-9

10

Interpretation:
After the analysis I conclude that majority of the respondent drink 3-5 glasses of
carbonate drinks in a week. And 30% of the respondent drinks 4-6 glasses of carbonate
drinks in a week, 20% respondent drinks once in a week, only 3% of the respondent
drinks 7-9 glasses, and 0% in 10 glasses.
3. What cola-brand do you drink the most?

Option
Coca cola
Pepsi
Other

Number of respondent
8
19
3

% of responses
27
63
10

other; 10%
coca cola; 27%

pepsi; 63%

coca cola

pepsi

other

Interpretation:
After analysis I find that majority of the respondent prefer Pepsi as a brand mostly for
drinking cola that means 63% and 27% of the respondent prefer coca cola and remaining
10% of them prefer other brand for drinking cola.

4. Which brand do you prefer?

Option
Coca cola
Pepsi
neither

Number of respondent
7
18
5

% of responses
23
60
17

coca cola

pepsi

17%

neither

23%

60%

Interpretation:
After analysis I conclude that many of the respondent prefer Pepsi as a best brand and
reaming 23% of respondent prefer coca cola as a brand and 17% of the respondent prefer
both as a brand. From the above table and graph we can see that Pepsi is the most preferring
brand for carbonate drinks.

5. What is your view on Coca-Cola as a brand?


Option
Very good
Good
neither
bad
Very bad

Number of respondent
4
19
4
3
0

% of responses
13
63
14
10
0

very good

good

neither

10%

bad

very bad

13%

14%

63%

Interpretation:
After analysis I conclude that majority of the respondent that means 63% of them feel coca
cola brand as good and 10% of them feel coca cola as brand is bad.

6. What is your view on Pepsi as a brand?


Option
Very good
Good
neither
bad
Very bad

Number of respondent
4
21
4
1
0

% of responses
13
63
14
10
0

very good

good

neither

4%

bad

very bad

13%

13%

70%

Interpretation:
From the above table and graph we can see that 70% of the respondent feel that Pepsi as a
good brand and 13% of the feel neither good nor bad and 13% of them feel its a very good as
a brand.

7. Do you know what Coca-Cola advertises?


Option
YES
No

Number of respondent
8
22

% of responses
27
73

27%

73%

yes

no

Interpretation:
After analysis I conclude that 73% of the respondent are not aware about the coca cola
advertisement and remaining 27% of the respondent are aware about coca cola advertisement.
It indicate that majority of them are not aware about the coca cola advertisement that means
the company have to improve their advertising.

8. Do you know what Pepsi advertises?


Option
YES
No

Number of respondent
22
8

% of responses
73
27

27%

73%

yes

no

Interpretation:
From the above table and graph we can see that 73% of the respondent are aware about the
Pepsi advertisement and remaining 27% of them are not. It indicates that the advertisement of
the Pepsi is more popular than the coca cola advertisement.

9. How much influence does the advertisement have on your choice of cola-product?

Option
Very much
A lot
Neither
Little
Very little

Number of respondent
1
7
4
11
7

% of responses
3
23
13
37
24

very much

a lot

neither

little

very little

3%
24%

23%

13%

37%

Interpretation:
After analysis I conclude that 375 of the respondent feel that advertisement about the cola
product affect them little and 23% of them feel it affect them a lot.

10. What do you think about the fact that companies use celebrities in their advertising
campaigns?
Option
Very good
God
Neither
Bad
Very bad

Number of respondent
4
22
3
0
1

% of responses
14
73
10
0
3

very good

good

10%

neither

3%

bad

very bad

14%

73%

Interpretation:
From the above table and graph we can see that majority of the respondent 735 are think
good about the companies using celebrities in their advertisement and 145 of them feel it very
good.
11. How does this affect your view of the brand?
Option
Positively
negatively

Number of respondent
26
4

% of responses
87
13

negatively

positively

Interpretation:
After analysis I conclude that 87% of the respondent are feeling positively about celebrities in
the advertisement of the cola brand and remaining 13% of them are feeling negatively about
the same.

12. Would an advertisement with your idol affect your choice of cola-product?
Option
Positively
negatively

Number of respondent
20
10

% of responses
67
33

negatively

positively

Interpretation:
From the above graph and table we can see that advertisement with the idol affect 67% of the
respondent and 33% of the respondent feel it does not affect the choice of cola brand.

13. Which logo do you prefer?


Option

Number of respondent
18

% of responses
60

12

40

40%

60%

Interpretation:
After analysis I conclude that 60% of the respondent prefer Pepsi logo and 40% of them
prefer coca cola logo.

14. Which slogan appeals to you the most?


Option
Thanda matlab coca

Number of respondent
13

% of responses
43

cola
Oh yes abhi

17

57

40%

60%

thanda matlab coca cola

oh yes abhi

Interpretation:
From the above table and graph we can see that clearly slogan of Pepsi appeal the customer
most than the coca cola slogan.

15. Do you know what Coca-Cola sponsors?

Option
Yes
no

Number of respondent
30
0

% of responses
100
0

100%

yes

no

Interpretation:
After analysis I conclude that 100% of the respondent are not aware about what the coca cola
company sponsors.

16. Do you know what Pepsi sponsors?

Option
Yes
no

Number of respondent
4
26

% of responses
13
87

13%

87%

yes

no

Interpretation:
After analysis I conclude that 87% of the respondent are not aware about what the Pepsi
company sponsors and the remaining 13% of them aware about the same.

CHAPTER 4
SUMMARY, FINDING, RECOMMENDATION

A. SUMMARY:
The soft drinks and beverages can be said to be as old as a civilization of man. Soft drinks are
known as refresher and man need to refresh himself in the time of his thirst, fatigue and
dullness.
The conventional Indian soft drink pattern includes lemon juice, butter milk, lassi etc. with
entry of British India got westernized and synthetic soft drinks which were part of the
dominant life style of the western world came floating to India.

Research is done through personal survey with questionnaire for customers and found that
Pepsi has good market potential as compared to coca cola and consumer prefer this brand
because of taste and refreshing and they expect some more improved advertisement so that it
can compete more with Pepsi.

B. FINDING:
Majority of the consumers prefer Pepsi due to its Brand Image, Taste &
Quality.
Most of the consumers of a Coca-Cola brand are not so satisfied and
consumers of Pepsi are satisfied with the offers provided by the company.
From the survey it has been observed that advertisements have shown a
greater impact on purchase decision.
Pepsi has got a greater market share compared to the coca cola because of its
product line & product range.

From the survey I observe that 100% of the respondent are not aware about
what the coca cola sponsor.
My hypothesis is proven because majority of the respondent prefer Pepsi then
coca cola and the advertisement of Pepsi is more attractive to the customer.

C. RECOMMENDATION:
The Pepsi Company should maintain its consistency and should introduce new models
according to the changing needs in the market.
Both companies should concentrate on consumer offers to retain the existing
consumers as well as to attract the new customers.
The companies have to pay a greater attention on its distribution activities to satisfy
the needs of all types of consumers.
The companies should redesign the packing models of the products to meet the
expectations of consumers.
The companies should come up with timely and updated advertisements, which
include sponsorships to different social responsibility campaigns

To influence the consumers buying behavior, both the companies


should maintain good quality, availability and create awareness;
brand image towards their products in the mind set of consumers,

ANNEXURE

BIBLIOGRAPHY:

http://www.pepsicoindia.co.in/media/fact-sheet.html

http://groovyganges.org/2007/07/history-of-coca-cola-in-india/

http://www.businessdictionary.com/definition/research-methodology.html

www.cocacolaindian.com

NAME: ____________________________________________________________
AGE: _______________ MOBILE NO: ___________________________________
1. Do you drink cola-soft drinks?
Yes

No

2. How many glasses do you drink per week?


1

1-3

4-6

7-9

10

3. What cola-brand do you drink the most?


Coca-Cola

Pepsi

Other: ____________________

4. Which brand do you prefer?


Coca-Cola

Pepsi

Neither

5. What is your view on Coca-Cola as a brand?


Very good

Good

Neither

Bad

Very bad

Bad

Very bad

6. What is your view on Pepsi as a brand?


Very good

Good

Neither

7. Do you know what Coca-Cola advertises?


Yes

No

8. Do you know what Pepsi advertises?

Yes

No

9. How much influence does the advertisement have on your choice of cola-product?
Very much

A lot

Neither

Little

Very little

10. What do you think about the fact that companies use celebrities in their advertising
campaigns?
Very good

Good

Neither

Bad

Very bad

11. How does this affect your view of the brand?


Positively

Negatively

12. Would an advertisement with your idol affect your choice of cola-product?
Positively

Negatively

13. Which logo do you prefer?

14. Which slogan appeals to you the most?


Thanda matalab Coca-Cola!

Oh yes abhi

15. Do you know what Coca-Cola sponsors?


Yes: _______________________________________________

No

16. Do you know what Pepsi sponsors?


Yes: ______________________________________________

No