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1 About the Industry sectors

1.1.1. History of the industry
The beverage industry refers to the industry that produces drinks, in particular ready to drink
beverages. Beverage production can vary greatly depending on the beverage being made. explains that, "bottling facilities differ in the types of bottling lines
they operate and the types of products they can run". Other bits of required information include
the knowledge of if said beverage is canned or bottled (plastic or glass), hot-fill or cold-fill, and
natural or conventional. Innovations in the beverage industry, catalyzed by requests for nonalcoholic beverages, include: beverage plants, beverage processing, and beverage packing

1.1.2. Beverage Industry Overview

The food processing industry in India has a total turnover of around USD 65 billion which
includes value added products of around USD 20.6 billion. Coca cola, Pepsi, and Nestle are the
leading beverage brands that have been ruling the Indian beverage market since past few
decades. Among all the beverages, tea and coffee are manufactured as well as exported heavily in
the international markets succumbing to the individual demands around the world.

The beverage industry in India constitutes of around USD 230 million among the USD 65 billion
food processing industry. The major sectors in beverage industry in India are tea and coffee
which are not only sold heavily in the domestic market but are also exported to a range of
leading overseas markets. Half of the tea and coffee products are available in unpacked or loose
form. Among the hot beverages manufactured in India, tea is the most dominant beverage that is
ruling both the domestic and international market even today. The supply of tea and coffee is
insurmountable in the Indian beverage industry.

The taste factor in tea varies according to the taste of individuals in different countries and the
beverage companies in India manufacture the products in accordance with the taste of the
individuals. For example, the inhabitants in the southern parts of India prefer dust tea whereas
the inhabitants in the western part of India prefer loose tea. The Southern India also prefers
coffee a lot. The production capacity of the total packaged coffee market is 19,600 tones which is
approximately a USD 87 million market. The soft drink market such as carbonated beverages
and juices constitutes around USD 1 billion producing 284 million crates per year. In the peak
season, the consumption capacity reaches 25 million creates per month and during off season the
same goes down to 15 million crates in a month. Pepsi and Coca cola are the two leading brands
in the Indian market. The mineral water market in India is a USD 50 million industry and
produces 65 million crates. Around 4.9 million crates is usually consumed each month but it rises
to 5.2 million crates in the peak season.

1.1.3. About Beverage Companies in India

Fruit juices, pulp and concentrates, and sauces or ketchups are doing very well in the beverage
market in India for the past few years. Various milk products, health beverages, beer, and country
liquors have also been contributing largely in the rising demand of beverages in India. The
leading beverage companies in India are also exporting various products especially tea and
coffee to the international markets every year. Tea and coffee have registered an excellent growth
in the Indian beverage market as these are the most preferred drinks purchased excessively
around the world. Among all the leading beverage companies in India, Coca cola has accounted
for a thriving growth since its inception. It occupies around 60 percent of the carbonated drink
sector in the Indian beverage industry. Another predominant brand in beverages is Nestle India
Limited which occupies 61.85 percent of the total Nestle S.A. Switzerland. The Nestle products
are hugely exported to Russia apart from selling in the domestic market.

1.1.4. List of Top Beverage companies in India:

Ace continental Exports

Amalgam Enterprises
UB Group
Vinbros & Co
Indian beer
Agarmet Corporation
Apple Valley group
Cygnet India
Karnataka Plantation Coffee
Lonchan tea
North Western Cacher Tea
Tata Tea
Thunderbolt Tea
Dhunseri tea
McDowell & company
NHN Water technologies
Camellia Overseas Pvt. Ltd

1.2. About the company

1.2.1. About PepsiCo India

PepsiCo entered India in 1989 and has grown to become one of the largest food and beverage
businesses in India. PepsiCo India has been consistently investing in the country and has built an
expansive beverage and snack food business supported by 37 beverage bottling plants and 3 food
plants. PepsiCo India diverse portfolio includes iconic brands like Pepsi, Lays, Kurkure,
Tropicana 100%, Gatorade and Quaker. Within 2 decades, the company has been able to
organically grow eight brands each of which generate Rs. 1,000 crore or more in estimated
annual retail sales and are household names, trusted across the country.

PepsiCo India is driven by its global commitment to sustainable growth, Performance with
Purpose: PepsiCo promise to provide a wide range of foods and beverages from treats to healthy
eats; to find innovative ways to minimize our impact on the environment by conserving energy
and water and reducing packaging volume; to provide a great workplace for our associates; and
to respect, support and invest in the local communities where we operate. In 2009, PepsiCo India
achieved a significant milestone, by becoming the first business to achieve Positive Water
Balance in the beverage world, a fact verified by Deloitte Touch Tohmatsu India Pvt. Ltd. The
company has been Water Positive since then.

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 US $63 billion dollars in net
revenue in 2015, driven by a complementary food and beverage portfolio that includes Frito-Lay,
Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo's product portfolio includes a wide range
of enjoyable foods and beverages, including 22 brands that generate more than US $1 billion
dollars each in estimated annual retail sales.

1.2.2. Nimbooz Overview

7Up Nimbooz is a great taste and good refreshing
drink mixed into natural lime. It contains 10.1
percentage of sugar, Lemon, Acidity Regulators and Salt will gives tasty yummy refreshing
drink. It is also contains 5 percentage of Lemon Juice and there is no artificial flavour then no
added colour. It is best for all seasoning and also helps refreshing in your mind and body for
whole day. Nimbooz is comes in two different flavours Nimbooz Lemon and Masala Soda. It is
available in 350 ml pack.

1.2.3. Nimbooz Manufacturer Info

Manufacturer Name : PepsiCo
Available Countires : Bangladesh, India, New Zealand, South Africa, United Kingdom, United
Made In :

United States

Available Since:

2009 Directors & Board of directors

Shona L. Brown
Former Senior Advisor to Google Inc.

George W. Buckley
Former Chairman, President and Chief Executive Officer, 3 M Companies; Chairman, Smiths
Group plc

Cesar Conde
Chairman, NBC Universal International Group and NBC Universal Telemundo
Ian M. Cook
Chairman, President and Chief Executive Officer, Colgate-Palmolive Company

Dina Dublon
Former Executive Vice President and Chief Financial Officer, JP Morgan Chase & Co.

Richard W. Fisher
Former President and Chief Executive Officer, Federal Reserve Bank of Dallas

William R. Johnson
Operating Partner, Advent International Corporation; Former Chairman, President and Chief
Executive Officer, H.J. Heinz Company
Indra K. Nooyi
Chairman and Chief Executive Officer, PepsiCo

Robert C. Pohlad
President, Dakota Holdings, LLC

Lloyd G. Trotter
Managing Partner, GenNx360 Capital Partners

Daniel Vasella
Former Chairman and Chief Executive Officer, Novartis AG

Alberto Weisser
Former Chairman and Chief Executive Officer, Bunge Limited

1.2.4. History of Nimbooz

New Delhi, April 7, 2015 : Get ready to beat the heat as PepsiCo Indias 7UP Nimbooz Masala
Soda tingles your taste buds this summer. 7UP Nimbooz Masala Soda is made from real lemon
juice, soda and has a hint of masala that gives it a unique chatpataka taste. Created specially to
appeal to the Indian palette, the product is a result of extensive flavour development and
consumer testing. The product will be available in Northern and Westerns parts of India across
key markets like Delhi NCR, Punjab, Haryana, Rajasthan, Uttar Pradesh, Maharashtra and
Traditionally lemon soda drinks have remained a popular thirst quenching summer drink in
India. With 7UP Nimbooz Masala Soda, 7UP has taken this popular taste to the next level. Its
unbeatable refreshing taste combined with a hygienic, convenient and on-the-go format at an
attractive price promises to provide authentic Indian taste to consumers this summer

7UP Nimbooz Masala Soda has also launched an all-new chatpataka thematic featuring brand
ambassador and actor Anushka Sharma. Get ready to slurp up 7UP Nimbooz Masala Soda and

feel UP! 7UP Nimbooz Masala Soda is available in 200ml returnable glass bottles (RGB) and
500ml PET.

Commenting on the launch, Ruchira Jaitly, Sr. Director Marketing- Social Beverages, PepsiCo
India said, Refreshing nimbu paani is integral to us Indians to beat the summer heat. 7UP
Nimbooz Masala Soda has been developed in India, for Indians, with real lemon juice, soda and
a hint of masala giving a refreshing and authentic taste with an all family appeal. We are
confident that consumers will not only like the authentic refreshing taste of 7UP Nimbooz
Masala Soda, but also relate to the brand given its strong Indian chatpataka appeal.

1.2.5. Brand Advantage

With real lemon juice, 7UP Nimbooz adds to the lemon credentials of the 7UP portfolio and
firmly establishes it as a dominant player in the juice-based drinks category. Its bubblier and
tangier cousin 7UP Nimbooz Masala Soda is a lip-smacking explosion of taste that'll refresh
you like no other drink can. 7UP Nimbooz Masala Soda also has the goodness of real lemon
juice, which makes it a healthy option as well.

1.2.6. Quick Brand Facts

Indias first nationally-available packaged Nimbu Pani. It was launched in India in 2009.
7UP Nimbooz Masala Soda was launched in India in 2012. The product offering of Real lemon
juice + Masala + Soda gives a taste so refreshingly unique that we had to coin a new name for it
Even though the brand was launched in a small geography, the response that it has received from
consumers has been phenomenal

2.1. Literature Review

"Consumer behavior is the actions and decision processes of people who purchase goods
and services for personal consumption. Engel, Blackwell, and Mansard.

Consumer behavior is the decision process and physical activity, which individuals
engage in when evaluating, acquiring, using or disposing of goods and services. Louden and

"Consumer buying behaviour is itself is a complex, dynamic issue which cannot be

defined easily and commonly. Therefore, the concept of consumer buying behaviour has been
defined in different ways by different researchers Blackwell (2006)

Consumer buying behaviour as a process of choosing, purchasing, using and disposing

of products or services by the individuals and groups in order to satisfy their needs and wants.
Similar definition of consumer buying behaviour is offered by Schiffman and Kanuk (2000) in
which they describe it as behaviour that consumers express when they select and purchase the
products or services using their available resources in order to satisfy their needs and desires
Solomon (1995)

Consumer behaviour reflects the totally of consumer decision with respect to the
aquision usage & disposition of goods , services , time & ideas by human decision making unit.

Consumer behavior is the study of how people buy, what they buy, when they buy and
why they. Kotler (1994)

"Consumer buying behaviour is defined . as a set of activities which involves the

purchase and use of goods and services which resulted from the customers emotional and mental
needs and behavioural responses. It is further stated by Gabbot and Hogg (1998) that the process
may contain different activities and stages. Stallworth

Consumer behaviour consists of the act of the individual in obtaining and

using goods & services including the decision preceves & determine these act. Kurtz & Boone

Consumer behaviour is all psychological, social & physical behaviour of potential

consumer as they become aware of evaluate purchase, consume & tell other people about
product and services.Webster Dictionary


2.2. About the Topic

2.2.1. Introduction of Consumer behaviour
Consumer behaviour is the study of individuals, groups, or organizations and the processes they
use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs
and the impacts that these processes have on the consumer and society. It blends elements from
psychology, sociology, social anthropology, marketing and economics. It attempts to understand
the decision-making processes of buyers, both individually and in groups such as how emotions
affect buying behaviour. It's studies characteristics of individual consumers such as
demographics or personality 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,
sports, 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. Research has shown that consumer behaviour is
difficult to predict, even for experts in the field. Relationship marketing is an influential asset for
customer behaviour analysis as it has a keen interest in the re-discovery 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,
personalization, customization and one-to-one marketing. Social functions can be categorized
into social choice and welfare functions.

Each method for vote counting is assumed as social function but if Arrows 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).


2.2.2. Who is a Consumer ?

Any individual who purchases goods and services from the market for his/her end-use is called a
In simpler words a consumer is one who consumes goods and services available in the market.
Example - Tom might purchase a tricycle for his son or Mike might buy a shirt for himself. In the
above examples, both Tom and Mike are consumers.

2.2.3. Nature of Consumer Behaviour:

The various factors that influence the consumer behaviour are as follows:
1.Influence by various factor
a. Marketing factors such as product design, price, promotion, packaging, positioning and distribution.
b. Personal factors such as age, gender, education and income level.
c. Psychological factors such as buying motives, perception of the product and attitudes towards
the product.
d. Situational factors such as physical surroundings at the time of purchase, social surroundings
and time factor.
e. Social factors such as social status, reference groups and family.
f. Cultural factors, such as religion, social classcaste and sub-castes.

2. Undergoes a constant change:

Consumer behaviour is not static. It undergoes a change over a period of time depending on the
nature of products. For example, kids prefer colorful and fancy footwear, but as they grow up as
teenagers and young adults, they prefer trendy footwear, and as middle-aged and senior citizens
they prefer more sober footwear. The change in buying behaviour may take place due to several
other factors such as increase in income level, education level and marketing factors.


3. Varies from consumer to consumer:

All consumers do not behave in the same manner. Different consumers behave differently. The
differences in consumer behaviour are due to individual factors such as the nature of the
consumers, lifestyle and culture. For example, some consumers are technological. They go on a
shopping and spend beyond their means.
They borrow money from friends, relatives, banks, and at times even adopt unethical means to
spend on shopping of advance technologies. But there are other consumers who, despite having
surplus money, do not go even for the regular purchases and avoid use and purchase of advance

4. Varies from region to region and country to county:

The consumer behaviour varies across states, regions and countries. For example, the behaviour
of the urban consumers is different from that of the rural consumers. A good number of rural
consumers are conservative in their buying behaviors.
The rich rural consumers may think twice to spend on luxuries despite having sufficient funds,
whereas the urban consumers may even take bank loans to buy luxury items such as cars and
household appliances. The consumer behaviour may also varies across the states, regions and
countries. It may differ depending on the upbringing, lifestyles and level of development.

5. Information on consumer behaviour is important to the marketers:

Marketers need to have a good knowledge of the consumer behaviour. They need to study the
various factors that influence the consumer behaviour of their target customers.
The knowledge of consumer behaviour enables them to take appropriate marketing decisions in
respect of the following factors:
a. Product design/model
b. Pricing of the product
c. Promotion of the product
d. Packaging
e. Positioning
f. Place of distribution

6. Leads to purchase decision:

A positive consumer behaviour leads to a purchase decision. A consumer may take the decision
of buying a product on the basis of different buying motives. The purchase decision leads to
higher demand, and the sales of the marketers increase. Therefore, marketers need to influence
consumer behaviour to increase their purchases.

7. Varies from product to product:

Consumer behaviour is different for different products. There are some consumers who may buy
more quantity of certain items and very low or no quantity of other items. For example, teenagers
may spend heavily on products such as cell phones and branded wears for snob appeal, but may
not spend on general and academic reading. A middle- aged person may spend less on clothing,
but may invest money in savings, insurance schemes, pension schemes, and so on.

8. Improves standard of living:

The buying behaviour of the consumers may lead to higher standard of living. The more a person
buys the goods and services, the higher is the standard of living. But if a person spends less on
goods and services, despite having a good income, they deprives themselves of higher standard
of living.

9. Reflects status:
The consumer behaviour is not only influenced by the status of a consumer, but it also reflects it.
The consumers who own luxury cars, watches and other items are considered belonging to a
higher status. The luxury items also give a sense of pride to the owners

2.2.4. Evaluation of consumer behaviour

At this time the consumer compares the brands and products that are in their evoked set. The
evoked set refers to the number of alternatives that are considered by consumers during the
problem-solving process. Sometimes also known as consideration, this set tends to be small
relative to the total number of options available. How can the marketing organization increase
the likelihood that their brand is part of the consumer's evoked set? Consumers evaluate
alternatives in terms of the functional and psychological benefits that they offer. The marketing

organization needs to understand what benefits consumers are seeking and therefore which
attributes are most important in terms of making a decision. It also needs to check other brands
of the customers consideration set to prepare the right plan for its own brand.

The evaluation of the alternatives process is how the consumer determines the different products
available. According to Kotler et al., (2014) there appears to be no simple evaluation process
useful by consumers in all-buying situations. There are a few concepts that can explain the
consumer process. A consumer evaluates a product with different attributes, for example Kotler
et al., (2014) explains that restaurant attributes would be food quality, price, location,
atmosphere, quality of service and menu selection. Consumers depending on their geographic,
demographic, psychographic and behavioural characteristics will decide which attributes are
important to them. After evaluating the different attribute the product offers the consumer will
then priorities each attribute in the order from highly important to least important. As stated in
Kotler et al., (2014) these priorities are directly related to the consumers needs and wants. The
next process in brand image, Kotler et al., (2014) says the consumer applies certain beliefs to a
particular known brand. The consumers beliefs may differ depending on the consumers
experience and the effects of selective perception, distortion and retention. Kotler et al., (2014)
portrays that one or more of the processes suggest above is used depending on the customers
buying decision process. Purchase decision

Once the alternatives have been evaluated, the consumer is ready to make a purchase decision
Sometimes purchase intention does not result in an actual purchase. The marketing organization
must facilitate the consumer to act on their purchase intention. The organization can use a variety
of techniques to achieve this. The provision of credit or payment terms may encourage purchase,
or a sales promotion such as the opportunity to receive a premium or enter a competition may
provide an incentive to buy now. The relevant internal psychological process that is associated
with purchase decision is integration. Once the integration is achieved, the organization can
influence the purchase decisions much more easily.

There are 5 stages of a consumer buying process: The problem recognition stage, meaning the
identification of something a consumer needs. The search for information, which means you
search your knowledge bases or external knowledge sources for information on the product. The
possibility of alternative options, meaning whether there is another better or cheaper product
available. The choice to purchase the product and then finally the actual purchase of the product.


This shows the complete process that a consumer will most likely, whether recognisably or not,
go through when they go to buy a product. Post-purchase evaluation

The EKB (Engel, Kollat, Blackwell) model was further developed by Rice (1993) which
suggested there should be a feedback loop. Foxall (2005) further suggests the importance of the
post-purchase evaluation and that it is key because of its influences on future purchase patterns.
Post-purchase evaluation is the last stage that a consumer experiences, after purchasing the good
or service. This stage involves examining and comparing product features, such as price, brand,
and quality. It can be viewed as the steps taken by consumers to correlate their expectations to
perceived value, and thus influences the consumers next purchase decision for that good or
service. For example, if a consumer buys a new phone and his or her post-purchase evaluation is
positive, he/she will be encouraged to purchase the same brand or from the same company in the
future. This is also known as "post-purchase intention". On the contrary, if a consumer is
dissatisfied with the new phone, he or she may take actions to resolve the problem. This could
involve requesting a refund, making a complaint, or deciding not to purchase the same brand or
from the same company in the future.
After acquisition, consumption or disposition, consumers can feel some uncertainty in regards to
the decision made, generating in some cases regression. Post-decision dissonance is a feeling of
anxiety, feeling whether or not the correct decision was made after a purchase.
The anxiety can affect consumers' behaviour and there are some strategies to try to reduce it.
Consumers might look for opinion from other people in order to get some sense about their
purchase decision. Advertising can also be one good source of information as consumers pay
certain attention to advertising from the brands that they know and are familiar with.
When the situation occurs that a consumer can identify an unfavorable comparison between the
chosen option and the options not chosen it creates a post-decision regret. Consumers can also
feel short-term regret in a situation where there is a purchase opportunity and the action is not
made during this time however this regret can go away over time. Through their experiences
consumers can learn and also engage in a process thats called hypothesis testing. It enables
consumers to form hypothesis about the products or a service through their past experiences,
word of mouth or advertising. There are four stages that consumers go through in the hypothesis
testing: Hypothesis generation, exposure of evidence, encoding of evidence and integration of


evidence. The model of learning from experience suggests that through experiences consumers
can gain a lot of information about the products. The process can be affected by four factors:
Motivation - The stage of motivation enables consumers to generate hypotheses and look for
information to confirm or negate it, for that reason keeping consumers active in the process of
learning from experience. On the other hand, if the motivation is low consumers will not
generate much hypotheses therefore learning less during the learning process.
Prior knowledge or ability High knowledge provides to consumers the chance to a welldefined belief and expectation resulting in a low chance to create new hypotheses. Besides
consumers with low knowledge skills are likely to establish hypotheses to help in the learning
process, as consumers might find difficult to collect evidence without any guiding hypotheses.
Ambiguity of the information environment or lack of opportunity when consumers do not have
enough information available to confirm or disapprove hypotheses, ambiguity of information
occurs. The first choice under the context of ambiguity can influence consumers decisions,
resulting in preferences for the chosen option. On the other side when consumers have some
doubts about the product quality, they would search for some facts to support their hypotheses
through word of mouth or advertising.
Processing biases When the evidence is ambiguous and bias is confirmed it can interfere in the
learning process. It can cause consumers to turn aside negative and highly diagnostic
information. Negative information is also important to the learning process, contributing to a
better overview of the situation and allowing consumers to be more accurate towards test

2.2.5. Importance of studying consumer behaviour

Perhaps the most challenging concept in marketing deals with understanding why consumers do
what they do (or dont do). But such knowledge is critical for marketers since having a strong
understanding of consumer behaviour will help shed light on what is important to the consumer
and also suggest the important influences on consumer decision-making. Using this information,
marketers can create marketing programs that they believe will be of interest to consumers. The
reason for studying consumer behaviour seems very simple to understand the consumers
mindset and the factors that influence it. But, just that much is not enough; today, we need to

study consumer behaviour in detail, looking into the smallest nuances of it so as to identify what
exactly the consumer desires because in todays times with so much of competition in every
market segment we cannot afford to take the consumer for granted. With a range of choices in
every product, if the consumers desire is not looked after they will surely move on to any one of
the competitors. According to a recent study:

Out of 11000 products introduced by 77 companies, only 56% are present 5 years later.

Only 8% of product concepts offered by 112 leading companies reached the market. Out of
that 83% failed to meet marketing objectives.

Now, the question that comes to my mind here is Why exactly did this happen?

The answer is the lack of understanding of consumer behaviour. Not only is launching a new
product and getting the product noticed by the consumer important but what is more important is
to make sure that the consumer is hooked on to the product and comes back for it time and again
We can sell a product to a consumer again and again only if the consumer feels that this is the
best product in the market to satisfy his needs and maybe even give him some delight and in
order to design the best product, it is necessary to understand not just the physics and chemistry
of the product, but also the psychology of consumers and the sociology of consumer groups or
networks. This is exactly why all managers must become astute analysts of consumer motivation
and behaviour. A fundamental understanding of consumer behaviour underpins all marketing
activity and is a necessary prerequisite to organisations being marketing orientated and thus


2.2.5 . The study of consumer behaviour has proved that following are the
main factors which influence the behaviour:


2. Social




6. Others

1. Economic Factors:
Distribution of Income
Competition with substitutes
Consumer preferences

2. Social Factors:
Attitude of society
Social values
Life Style
Size of family
Health standards


Social class like upper class, middle class-urban, rural. It also includes tribes, professions and
In certain societies and tribes group decision is taken or influences the decision.
3. Psychology:
It decides the personality, taste, attitudes of individuals or groups, life style, preferences
especially on occasions like marriage. The demonstration influence is also dependent upon
psychology of an individual.
4. Anthropology & Geography:
Climate, region, history all effect, consumer behaviour. In hot countries like India certain
products which keep us cool like squashes, sarbatas, are demanded but they have no demand in
cold regions. The dress is also influenced by climate along with other factors. Culture is also
influenced by climate.

5. Technology:
In case of equipments whether for consumer use or industrial use is affected by technological
innovations and features. But it is not confined to durable goods only. Even in case of perishable
goods the shelf life etc are determined by technological developments. Innovations and
introduction of new product also depends upon technological development.
Innovations and introduction of new products also depend upon technological change.

6. Others:
Knowledge-technical or otherwise and information. Government decisions, laws, distribution
policies, production policies have also big affect on consumer behaviour. All these factors are
studied by consumer behaviour scientists and then they decide what production and marketing
strategy should be adopted to develop a particular product, change the existing product and what
pricing and marketing mix should be used to attract more customers towards the product/service
in question to optimize sales and profits.
The consumer behaviour study in India has been ignored except by MNCs and a few big
companies. It is because till recently say up to the beginning of 90s there was sellers market and
anything could be sold. Therefore, hardly any attention was paid to consumer. For instance
Hindustan Motors continued to produce same car for decades till Maruti appeared on the arena.

But with the competition emerging many cars, refrigerators, TVs to mention a few items
appeared on the scene.
This resulted into study of consumer behaviour and in future when competition is expected to be
fierce for many products and when not only American and European producers will be on the
scene but Japan and Korea are emerging big players there will be much greater emphasis on
study of consumer behaviour. The establishment of over 700 management institutes is also
helping greater use of the tool of consumer behaviour for marketing.

2.2.6. Advantages of Study of Consumer Behaviour:

The consumer science is largely used by marketer to find-out whether a particular product will be
purchased by consumers or not. The failure of a large number of products after II World War
compelled the producers and marketer to undertake consumer studies to market test the products.
Some of the advantages of study of consumer behaviour are as under:
Saves from Disaster:
The failure rate of new products is surprisingly high not only in highly competitive economies of
USA, Europe and Japan etc. but even in India. For instance, Roohafza of Hamdard succeeded
well but when other companies tried like Dabur to produce similar products they could not
succeed. Dabur had to stop production of Sharbat, because consumers did not like its taste.
Meghee became very popular with consumers but when other companies tried they failed, some
of them have become sick. There are many more such examples. If one tests the market before
launching a new product this type of disaster can be avoided or minimized.
Helps in Formulating Right Marketing Strategy:
If one studies well what factors will influence demand of a product accordingly production and
marketing strategies can be framed. Nirma in initial stages succeeded in its washing powder only
on account of its price. It gave tough competition to Hindustan Lever, Surf the market leader and
today Nirma has become a big producer.
In food items it is taste which decides whether consumer will buy it or not. Besides big names
even small producers have succeeded because of proper product. For instance, a small producer
of Sikanji (cold drink prepared by mixing syrup and lemon) at Modinagar has become a name in
the region and now he provides franchise to others. From a small pan shop he has become a well
known name in the area of Delhi-Modinagar and made huge profits. Helps in Sales Promotion
If through the study of consumer behaviour one is able to know correctly the factors which
influence buying decisions of the consumer one can promote sales of existing or new product.
The scheme of buying back old items has helped a lot LML in pushing sales.


This strategy was followed, by Akai T.V. and number of other companies like Bajaj Auto Akai.
T.V. Manufacturers of diesel generator sets, refrigerators, electric iron, pressure cookers etc. also
adopted the strategy and benefited.
Similarly, introduction of small packs of shampoos, washing powder and pan masala etc has
helped the companies to expand their market. When producers found that even a poor person
does not mind trying a new costly product if it is available in affordable price pack many
companies introduced such packaging and when the product was liked they became regular
Segmentation of Market is Helped:
The study of consumer behaviour suggested that everyone does not buy on price consideration or
utility consideration only. For high income groups high priced cloth, cars, etc have been
produced. In certain cases the price of such cloth is three to eight times of normal suiting price
but some section still buy it for prestige or show.
The producers of such items make heavy profits which would not have been possible without
study of consumer behaviour because it is against basic economic theory. Even some producers
to cater different segments produce varieties of products such as soaps, creams, toothpastes etc.
Helps in Development of New Products:
Before launching a new product proper study of consumer tastes i.e. behaviour avoids later
failure and loss. This is particularly true for food items and daily consumption products. It is
equally true for fashion goods like garments, cosmetics, cigarettes and new flavours of existing
products. In certain cases if a product is reintroduced after a long gap this type of study helps.
For instance, Coca-Cola was banned in India in 1977 and consumers by and large forget its taste
and liking. Thumps up and other drinks took its place. When Coca-Cola was reintroduced in 90s
it could as yet not reach the same supremacy. Life Bouy re-oriented its product and produced
different items like Life Bouy Gold, Life Bouy Plus to meet demand of different consumers.
Helps in Product Orientation:
The study of consumer behaviour helps to find-out why consumers are drifting away from a
product or why they are not liking it. For instance, some of Indian toothpastes are being
produced for long like Neem but it could not capture the market. There are many other instances
when a new product has been developed or reoriented to again capture its old glorious position.
Those who do it scientifically succeed and others who do not study consumer behaviour properly
or do not orient loose the market, merely by pretty faces or fancy claims he wants to be assured
that what is claimed is really true.


Therefore, based on consumer research new techniques are used Hindustan Lever and Procter &
Gamble for Surf Ultra and Ariel has brought in producers of cloth Bombay Dyeing and Reliance
to testify claims of producers of these washing powders. This is not an isolated case but this type
of study had paid good results to others also.
Helps in Reorientation of Packaging:
A great deal of importance is being given to packaging for quite some time by marketing
department and market research. But whether a particular packaging is liked by consumers or not
is a recent phenomenon. Consumer if likes a packing helps in pushing sales.
Producers of Vanaspati (hydrogenated oil), milk, drinks items, etc. have developed utility
packaging so that once container becomes empty they can be used for refilling. In certain cases
this fact is advertised also. But in many cases this has been done without study of consumer
behaviour and his attraction or disliking of a particular packaging. The fact however remains that
proper study can help in pushing sales.
Helps Consumers to Study their Behaviour:
The consumers often are guided by their income, emotions, opinion of others and they do not
undertake study of their behaviour whether it is scientific or not. The science, however, can help
them to study cost benefit of their buying decisions. The study can reveal them whether buying
an expansive item is rational, or not.
Whether they should buy Rs. 2 ball pen or fancy pen costing Rs. 100 or more. Whether they
should decide in favour of expensive cloth, car, consumer durables and other fashion goods or
should they buy on utility consideration. If there are competitive goods it can help them to make
consumer preference chart and then decide what to buy immediately and what to postpone and
what should be rejected. Disadvantages of Study of Consumer Behaviour:

The marketers study the behaviour of consumer to mold it in favour of their product and
sometimes make fancy claims and use objectionable techniques. They also take the help to
produce and market such products which have no utility. In many cases consumers are exploited
by sexy or otherwise attractive advertisements through the media.


They take full advantage of weaknesses of consumers to mold it in their favour whether it is
scheme of exchange, gifts, lotteries or otherwise. All over the world consumers have been
exploited by sales promotion schemes and campaigns. For instance producers certain producers
claim that use of their tooth paste will guard against germs and cavity.

Producers of medicines claim cure of certain diseases. Producers of hair oils claim that it will
stop falling of hairs and/or new hairs will start growing. Slim centres claim to reduce weight in
magic speedy manner. Someone claims that baldness can be cured by replanting of new hairs in
short period. Someone claims regeneration of vitality even in old person.

Any number of examples can be given but such claims sometimes even by big companies are
only partially true. High priced products are introduced to take advantage of consumers
weakness just by changing shape, packing etc. Customers are attracted by gifts, lotteries,
exchange schemes, etc.

In such cases often claims are exaggerated and benefits in the form of sales promotion scheme is
only to seller and not to buyer. The government in most of the countries has found that though
consumer is the king he is exploited. Hence most of countries have framed and enacted many
acts and regulations to safe guard the interest of consumers.

In India also there are a large number of laws in this direction like Monopoly and Restrictive
Trade Practices Act (MRTP)., Essential Commodities Act., Consumer Protection Act,
compulsory printing of maximum retail price on each packing, weights and Measures Act and
Code of Advertising.


The psychology of how consumers think, feel, reason, and select between different


How consumer motivation and decision strategies differ between products that differ in
their level of importance or interest that they entail for the consumer; and

How marketers can adapt and improve their marketing campaigns and marketing
strategies to more effectively reach the consumer.

2.2.8. Four main applications of consumer behaviour:

The most obvious is for marketing strategy i.e., for making better marketing campaigns. For
example, by understanding that consumers are more receptive to food advertising when they are
hungry, we learn to snack advertisements late in the afternoon. By understanding that new
products are usually initially adopted by a few consumers and only spread later, and then only
gradually, to the rest of the population, we learn that (1) companies that introduce new products
must be well financed so that they can stay afloat until their products become a commercial
success and (2) it is important to please initial customers, since they will in turn influence many
subsequent customers brand choices.

Social marketing involves getting ideas across to consumers rather than selling something. Marty
Fishbein, a marketing professor, went on sabbatical to work for the center for Disease Control
trying to reduce the incidence of transmission of diseases through illegal drug use. The best
solution, obviously, would be if we could get illegal drug users to stop. This, however, was
deemed to be infeasible. It was also determined that the practice of sharing needles was too
ingrained in the drug culture to be stopped. As a result, using knowledge of consumer attitudes,
Dr. Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing
them, a goal that was believed to be more realistic.

As a final benefit, studying consumer behaviour should make us better consumers. Common
sense suggests, for example, that if you buy a 64 liquid ounce bottle of laundry detergent, you
should pay less per ounce than if you bought 32 ounce bottles. In practice, however, you often

pay a size premium by buying the larger quantity. In other words, in this case, knowing this fact
will sensitize you to the need to check the unit cost labels to determine if you are really getting a

There are several units in the market that can be analyzed. Our main thrust in this course is the
consumer. However, we will also need to analyze our own firms strengths and weaknesses and
those of competing firms. Suppose, for example, that we make a product aimed at older
consumers, a growing segment. A competing firm that targets babies, a shrinking market, is
likely to consider repositioning toward our market. To assess a competing firm potential threat,
we need to examine its assets (e.g., technology, patents, market knowledge, awareness of its
brands) against pressures it faces from the market. Finally, we need to assess conditions (the
marketing environment). For example, although we may have developed a product that offers
great appeal for consumers, a recession may cut demand drama

3.1. Objectives of the Study:

To understand the consumer behavior of Nimbooz.
To find out the factors affecting consumer behavior.
To determine various parameter to collect information through questionnaire of
The scope of my study is to observe the degree of satisfaction levels of the Consumer
Behaviour as well as the technique adopted by nimbooz company

RESEARCH is a careful investigation or inquiry especially through search for new facts in
any branch of knowledge.

3.2. Methodology Of Study:



This chapter deals with the methodology adopted in conducting the study. The chapter is
organized as follows; research design, sources of data, population and sampling, research
instrument (data collection technique), administration of instrument and analysis of data.
The project is a systematic presentation consisting of the problem, collected facts of data,
analyzed facts and proposed conclusions in form of recommendations. The data has been
collected from both the sources primary and secondary sources.

3.2.1. Research Design

The research was based on assessing consumer behavior. The design was an exploratory study
which used closed observation in analyzing consumer behaviour. The study was based on the use
of questionnaires. These approaches were used because they were satisfactory tools for collecting
data for the sample population to investigate the topic under study.
A research design is the arrangement of the condition for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
A research design is the specification of methods and procedure for acquiring the information
needed to structure or to solve problems. It is the overall operation pattern or framework of the
project that stipulates what information is to be collected from which source and be what

What is study about?

What is study being made?

Where will the study be carried out?

What type of data is required?

Where can the required data be found?


What will be the sample design?

Technique of data collection.

How will data be analyzed?

3.2.2. Sources of Data

Both primary and secondary source of data were used in conducting the research. Primary Sources

In getting primary data there are several approaches available to gathering data. In order to
collect reliable and valid information, the researcher go to the market place and collect data from
different user of nimbooz. The method used in collecting the primary data was questionnaire.
The purpose of using questionnaire was to identify and assess the affect the Consumer Behavior.
A set of questionnaire was prepared with closeended questions. Secondary Sources

The study also made use of secondary data in collecting information. The sources of the
secondary data include books, internet search, articles, and journals among others. This helped to
identify how others have defined and measured key concepts, the data sources that of others used
and this helped to discover how this research project is related to other studies.

3.3.3. Sample Size

A sample size of 105 was chosen from the market. This was based on the Consumer behavior
and to ensure that the sampled was representative enough to draw conclusion through pie chart.

3.3.4. Sampling Techniques

The simple convince sampling technique was used to select respondents from the market.

3.3.5. Data Collection Instrument

The researcher used questionnaire. The researcher prepared the questionnaires to be responded
by the consumers. The questions were designed to make the purpose of the study successful after
the results have been ascertained. This instrument gave expected information about the consumer

3.3.6. Administration of Instruments

Copies of the questionnaire were distributed to consumers at market place. After some time, the
researcher went back and collected the answered questionnaires.

3.3.7.Data Analysis
The collected data were statistically analyzed, using the pie-chart and tables. Representations like
tables and charts were used to ensure easy and quick interpretation of data. Responses were
expressed in percentages. Data from the completed questionnaire were checked for consistency.
The items were grouped based on the responses given by the respondent. This method was used
because it is the best instrument to identify, compare, describe and reach a conclusion.



The analysis of the data is done as per the survey finding. The data is represented graphically in
percentage. The percentage of the people opinion were analyzed and expressed in the form of pie
Question 1:- Which of the following drinks you drink the most?
(a) Cola based (b) fruit based

















INTERPRETATION: 50% of respondent are drinking

respondent are drinking fruit based drink.

cola based drink and

Question 2:- Do you like the fruit based drink?

(a) Yes (b) No (c) Occasionally


















50% of

INTERPRETATION: 53.92% of respondent are drinking cold drink regularly , 17.64% of

respondent doesnt drink cold drink and 28.43% respondent are drinking cold drink occasionally.

Question:-3 Which cold drink do you like most ?

(a) Nimbooz

(b) Miranda (c) Limca (d) Others





















INTERPRETATION: 24.50% of respondent likes Nimbooz, 24.50% of respondent likes

Mirinda, 11.76% of respondent likes Limca and 40% of respondent like other drinks

Question:-4 What is the optimal amount of cold drink quantity that which you prefer ?
(a) 200ml

(b) 330ml (c) 500ml




















INTERPRETATION: 30.40% of respondent prefer to consume 200ml, 40.11% of respondent

prefer to consume 330ml and 25.49% of respondent prefer to consume 500ml.
Question:-5 Do you like fruit drink Nimbooz ?
(a) Yes (b) No

















INTERPRETATION: 70.58% of respondent are like fruit drink Nimbooz and 49.01% of
respondent are doest like fruit drink Nimbooz

Question:-6 Are you satisfied with the pricing of Nimbooz ?

(a) Highly satisfied (b) Dissatisfied (c) satisfied (d) Moderately satisfied (e)






















INTERPRETATION: 16.66% of respondent are highly satisfied with the price, 23.52% are
dissatisfied with the price, 36.37% are satisfied with the price, 13.72%are moderately satisfied
with the price and 9.80% respondent are undecided.
Question:- 7 What changes do you suggest for the product Nimbooz to make it more
popular ?
(a)Advertising (b) packaging (c) pricing (d) promotional schemes




















INTERPRETATION: 40% of respondent think that advertising is better option to make

nimbooz more popular,23.52% of respondent think that Packaging is better option to make
nimbooz more popular,23.52% of respondent think that Pricing is better option to make nimbooz
more popular, 13.72% of respondent think that Promotional scheme is better option to make
nimbooz more popular.
Question:- 8How will you rate the attributes that affect your decisions to buy the product
(a) Taste (b) pricing (c) Non-carbonate (d) Refreshing & Energy
S. No.





















INTERPRETATION: 16.66% respondents decisions to buy the nimbooz because it is very

tasty,26.47% respondents decisions to buy the nimbooz because its prcicing , 23.52%
respondents decisions to buy the nimbooz because it is Non Carbonate drink and 33.33%
respondents decisions to buy the nimbooz because it is Refreshing & Energy drink.
Question:-9 How did you get know about the Nimbooz ?
(a) Television (b) Friends (c) saw it available at store (d) others
S. No.






















INTERPRETATION: 50% respondent are get know about the Nimbooz from Television,
26.47% respondent are get know about the Nimbooz from Friends, 13.72% % respondent are
saw it available at the store and 9.80% respondent are get know about the Nimbooz from
others .
Question :- 10 Do you think that advertisement of Nimbooz should provide Full
information ?
(a) Yes (b) No

















INTERPRETATION: 63.72% respondent think that advertisement of Nimbooz should provide

Full information , 36.27 think that advertisement of Nimbooz doest provide Full information.
Question:- 11 Is there advertisement changed your performance towards Nimbooz ?
(a)Yes (b) No

















INTERPRETATION: 59.80% respondent are said the advertisement of Nimbooz attractive

and while other 40.20% respondents do not find it attractive .

50% of respondent are drinking cola based drink and 50% of respondent are drinking
fruit based drink.

The company uses this concept to gain its customers.

There are a lot of new companies entering in the insurance making it more competitive.

Much of the people are satisfied with the 200ml drink and some people are satisfied with
330ml and some people with 500ml.

70.58% of respondent are like fruit drink Nimbooz and 49.01% of respondent are doesnt
like fruit drink Nimbooz.


According to most of the customers the advertising and marketing strategies of the
company is good enough to attract the customer

The beverages sector helps in increasing the employment opportunities in India.

The PepsiCo uses this concept to gain its customers.

The PepsiCo is providing the products according the needs of the customers.

Majority of respondents thinks that advertisement of Nimbooz should provide Full


59.80 respondent are said the advertisement of Nimbooz attractive and while other
40.20% respondents do not find it attractive.


Company should prefer both cola based drink as well as Fruit based drink approach to

The company should also offer some more plans for the middle class of the society.

The company should provide better services to the customers so as to capture more and

more market.
Cheaper products

should be introduced by the company so that it can reach the middle

class public.

Companies must be focus on

promoting Nimbooz & approach costomers to drink


The company should stress much on its plans and sell the products according to the
customer needs.


The company should concentrate more on sales and marketing department so that more
and more products can be sold out.

The Pepsi company should make more and more plans according to the customers needs
Advertisements should be the best method to advertise the products and popular among
the public

Methods used for Promotion of Nimooz should be done carefully and systematically.

40.20% respondents do not find the advertisement is attractive respondents thinks that
advertisement of Nimbooz should provide Full information.

This study based on consumer behavior of Nimbooz. The conclusion is drawn on the
basis of analysis and interpretation. The business of soft drink Industry is significantly based
upon the impulse buying, so it is very necessary to Merchandise products of NIMBOOZ
efficiently and present them in such a manner so that it can motivate the consumer and generate a
thirst in consumer to consummate it. Nimbooz has a strong position in Dehradun with the
support of its distribution network., aggressive marketing efforts and advertising along with
attractive schemes but there still exists potential market in Dehradun to be expoilated and a
suitable its market share depending upon the under consideration.

Soft drink businesss behavior is not governed by brand loyalty so the emphasis is not
only on creating the market but also on retaining it. The availability of the right brand and flavor
pack, at the right place, at the right time is a key for winning the customer in soft drink business.
Public relation is also critically important in this industry.


The food and beverage industry has grown over the years he progress has been in
increasing order. This industry contributes around 10% in the GDP where PepsiCo is the second
largest food & beverages business in the world. The brand awareness and market share in the
world beverage market compared to coca cola is much weaker.

PepsiCos product mix of 2012 (based on world wide net revenue) consists if 63%
foods,and 37% beverages . On a worldwide basis, the companies currents products lines include
several hundred brands that in 2009 were estimated to have generated approximately $108
billion in cumulative annual retail sales. I concluded that Pepsi Company need to focus on
Advertisement and other means of Marketing. At the end of the study company should focus on
advertisement and promotion strategy.

BOOKS : K.V Mishra(1992), Principles & practices of Consumer Behaviour,,


publishing house Madras, 1992.

CHHABRA T.N.(2000), Inroduction of Consumer Behaviour, Dhanpat Rai and
co. (p) Ltd, Delhi, 2000.
Prasad, L.M(2008) , Marketing Management, New Delhi: Sultan Chand & Sons,
Kothari C.R., Research Methodology, 2nd edition,2003, Vikas Publishing House
Pvt. Ltd, New Delhi.
Singhla, R K, marketing strategy,
dariyaganj New Delhi


5 th edition, sultan & sons publications,

Fruit drink-inertia/so-article1-780440.aspx

Mobile no.:
Gender: (a) Male (b) Female

1) Which of the following drinks you drink the most ?

(a)Cola based (b) fruit based

2) Do you like the fruit based drink ?

(a) Yes (b) No (c) Occasionally
3) Which cold drink do you like most ?
(a) Nimbooz (b) Miranda (c) Limca (d) Others
4) What is the optimal amount of cold drink quantity that which you prefer ?

(a) 200ml

(b) 330ml (c) 500ml

5) Do you like fruit drink Nimbooz ?

(a) Yes (b) No
6) Are you satisfied with the pricing of Nimbooz ?
(a) Highly satisfied (b) Dissatisfied (c) satisfied (d) Moderately satisfied (e)
7) What changes do you suggest for the product Nimbooz to make it more popular ?
(a) Advertising (b) packaging (c) pricing (d) promotional schemes
8) How will you rate the attributes that affect your decisions to buy the product
(a) Taste (b) pricing (c) Non-carbonate (d) Refreshing & Energy
9) How did you get know about the Nimbooz ?
(a) Television (b) Friends (c) saw it available at store (d) other
10) Do you think that advertisement of Nimbooz should provide Full information ?
(a) Yes (b) No
11) Is there advertisement changed your performance towards Nimbooz ?
(a) Yes (b) No