FINAL PROJECT WORK ON

“Consumer Behavior towards Soft Drinks and In Particular towards

Coca-Cola“

THE PROJECT SUBMITTED TO THE

UNIVERSITY OF MUMBAI

IN PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF DEGREE OF

MASTER OF MANAGEMENT STUDIES (MMS)

BY

SARGAM NILESH AMBADAS ASHA

PARLE TILAK VIDYALAYA ASSOCIATION’S INSTITUTE OF

MANAGEMENT

VILE PARLE (E), MUMBAI – 400057.

2012-2014
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 UNIVERSITY OF MUMBAI

Parle Tilak Vidyalaya Association’s

Institute Of Management

(AICTE Approved)

CERTIFICATE

I Prof. Utpal Samant hereby certify that Mr. Sargam Nilesh Ambadas Asha, MMS
Student of Parle Tilak Vidyalaya Association’s Institute Of Management, has
completed a project titled “Consumer Behavior towards Soft Drinks and In
Particular towards Coca-Cola” in the academic year 2014. The work of the
student is original and the information included in the project is true to the best of
my knowledge.

Signature of Guide with Date Director of PTVA’s IM

Guide: Prof. Utpal Samant Dr. Harish kumar S. Purohit

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 DECLARATION

I, Mr. Sargam Nilesh Ambadas Asha MMS Student of Parle Tilak Vidyalaya
Association’s Institute of Management, hereby declare that I have completed
the project titled Consumer Behavior towards Soft Drinks and In Particular
towards Coca-Cola during the academic year 2012-14.

The report work is original and the information/data and the references included
in the report are true to the best of my knowledge. Due credit is extended on the
work of Literature by endorsing it in the Bibliography as per the prescribed
format.

Sargam Nilesh Ambadas Asha

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 ACKNOWLEDGEMENT

A project is a golden opportunity for learning and self-development. I consider

myself very lucky and honored to have so many wonderful people lead me through
in completion of this project.

My grateful thanks to Prof. Utpal Samant whose patience I have probably tested
to the limit. He was always so involved in the entire process, shared his
knowledge, and encouraged me to think. Thank you, Dear Sir. I would like to
thankDr. Harish kumar S. Purohit (Director, PTVA’S IM) for his help to give
me such an excellent opportunity.

Last but not the least there were so many who shared valuable information that
helped in the successful completion of this project thanks to all those.

TABLE OF CONTENTS

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 Sr. No Particulars Page no.
1 Soft Drinks Industry Profile 2
2 Soft Drinks Industry In India 5
3 Coca Cola Company Profile 9
4 Executive Summery 14
5 Literature Review On Coca Cola 15
6 Objectives And Need For The Study 19
7 Research Methodology 20
8 Findings, Analysis And Interpretation 22
9 Recommendation 31
10 Limitations Of The Project 32
11 Conclusion 33
12 Bibliography & Websites 34

SOFT DRINKS INDUSTRY PROFILE

A soft drink (also called soda, pop, coke, soda pop, fizzy drink, tonic, seltzer, mineral, sparkling
water, lolly water or carbonated beverage) is a beverage that typically contains water (often, but
not always carbonated water), usually a sweetener and usually a flavoring agent. The sweetener
may be sugar, high-fructose corn syrup, fruit juice, sugar substitutes (in the case of diet drinks)

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or some combination of these. Soft drinks may also contain caffeine, colorings, preservatives and
other ingredients.

Soft drinks are called "soft" in contrast to "hard drinks" (alcoholic beverages). Small amounts
of alcohol may be present in a soft drink, but the alcohol content must be less than 0.5% of the
total volume if the drink is to be considered non-alcoholic. Fruit juice, tea, and other such non-
alcoholic beverages are technically soft drinks by this definition but are not generally referred to
as such.

Soft drinks may be served chilled or at room temperature, and some, such as Dr. Pepper, can be
served warm. The first marketed soft drinks in the Western world appeared in the 17th century.
They were made of water and lemon juice sweetened with honey. In 1676, the Companies
Lemonades of Paris was granted a monopoly for the sale of lemonade soft drinks. Vendors
carried tanks of lemonade on their backs and dispensed cups of the soft drink to thirsty Parisians.

Carbonated drinks:
In the late 18th century, scientists made important progress in replicating naturally carbonated mineral
waters. In 1767, Englishman Joseph Priestley first discovered a method of infusing water with carbon
dioxide to make carbonated water when he suspended a bowl of distilled water above a beer vat at a local
brewery in Leeds, England. His invention of carbonated water (also known as soda water) is the major
and defining component of most soft drinks.

Priestley found that water treated in this manner had a pleasant taste, and he offered it to friends
as a refreshing drink. In 1772, Priestley published a paper entitled Impregnating Water with
Fixed Air in which he describes dripping oil of vitriol (or sulfuric acid as it is now called)
onto chalk to produce carbon dioxide gas, and encouraging the gas to dissolve into an agitated
bowl of water.

Another Englishman, John Mervin Nooth, improved Priestley's design and sold his apparatus for
commercial use in pharmacies. Swedish chemist Torbern Bergman invented a generating
apparatus that made carbonated water from chalk by the use of sulfuric acid. Bergman's
apparatus allowed imitation mineral water to be produced in large amounts. Swedish chemist Jon

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Jacob Berzelius started to add flavors (spices, juices, and wine) to carbonated water in the late
eighteenth century.

Soda fountains vs. bottled sodas:

In 19th century America, the drinking of either natural or artificial mineral water was considered

a healthy practice. The American pharmacists selling mineral waters began to add herbs and
chemicals to unflavored mineral water. They used birch bark (see birch
beer), dandelion, sarsaparilla, fruit extracts, and other substances. Flavorings were also added to
improve the taste. Pharmacies with soda fountains became a popular part of American culture.
Many Americans frequented the soda fountain on a daily basis. Due to problems in the U.S. glass
industry, bottled drinks were a small portion of the market in the 19th century. (However, they
were known in England. In The Tenant of Wild fell Hall, published in 1848, the caddish
Huntingdon, recovering from months of debauchery, wakes at noon and gulps a bottle of soda-
water.) In America, most soft drinks were dispensed and consumed at a soda fountain, usually in
a drugstore or ice cream parlor. In the early 20th century, sales of bottled soda increased
exponentially. In the second half of the 20th century, canned soft drinks became an important
share of the market.

Soft drink bottling industry:

Over 1,500 U.S. patents were filed for a cork, cap, or lid for the carbonated drink bottle
tops during the early days of the bottling industry. Carbonated drink bottles are under great
pressure from the gas. Inventors were trying to find the best way to prevent the carbon dioxide or
bubbles from escaping. In 1892, the "Crown Cork Bottle Seal” was patented by William Painter,
a Baltimore, Maryland machine shop operator. It was the first very successful method of keeping
the bubbles in the bottle.

Automatic production of glass bottles:

In 1899, the first patent was issued for a glass-blowing machine for the automatic production of
glass bottles. Earlier glass bottles had all been hand-blown. Four years later, the new bottle-
blowing machine was in operation. It was first operated by the inventor, Michael Owens, an

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employee of Libby Glass Company. Within a few years, glass bottle production increased from
1,400 bottles a day to about 58,000 bottles a day.

Soft drink production:

Soft drinks are made by mixing dry ingredients and/or fresh ingredients (for example, lemons,
oranges, etc.) with water. Production of soft drinks can be done at factories or at home.

Soft drinks can be made at home by mixing either a syrup or dry ingredients with carbonated
water. Carbonated water is made using a soda siphon or a home carbonation system or by
dropping dry ice into water. Syrups are commercially sold by companies such as Soda-Club; dry
ingredients are often sold in pouches, in the style of the popular U.S. drink mix Kool-Aid.

Ingredient quality:

Of most importance is that the ingredient meets the agreed specification on all major parameters.
This is not only the functional parameter (in other words, the level of the major constituent), but
the level of impurities, the microbiological status, and physical parameters such as color, particle
size, etc.

SOFT DRINKS INDUSTRY IN INDIA

Soft Drinks in India industry profile provide top-line qualitative and quantitative summary
information including: market size. The profile also contains descriptions of the leading players
including key financial metrics and analysis of competitive pressures within the market.
Essential resource for top-line data and analysis covering the India soft drinks market.

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The soft drinks market consists of retail sale of bottled water, carbonates, concentrates,
functional drinks, juices, RTD tea and coffee, and smoothies. However, the total market volume
for soft drinks market excludes the concentrates category. The market is valued according to
retail selling price (RSP) and includes any applicable taxes. Any currency conversions used in
the creation of this report have been calculated using constant 2012 annual average exchange
rates. The Indian soft drinks market generated total revenues of $3.8 billion in 2012, representing
a compound annual growth rate (CAGR) of 11% for the period spanning 2009-2012.

Producers: In India

 Appy Fizz by Parle

 Agua Blue (Natural Mineral Water By LR Beverages PvtLttd)
 Banta (lemon-flavored soft drink
 Bovonto (grape soda produced by Kali Mark)
 Campa Cola (popular Indian soda introduced in 1977)
 Cloud 9 (energy drink)
 Frooti (mango-flavored drink from Parle Agro)
 Frams (Local drink from Pune)
 Gold Spot
 Grappo Fizz
 Ganga (Local drink of Haryana)
 Guptas (8 flavored soft drinks introduced in 1947)
 Juicila (Powdered Soft Drink Concentrate available in Orange, Mango, Lemon, Cola,
Masala, Jaljira )
 Limca (lemon-lime soda)
 LMN (lemon drink produced by Parle Agro)
 Kalimark
 Duke's Mangola (mango drink from Dukes bought by PepsiCo)
 Duke's Lemonade
 Maaza (mango drink from Parle bought by Coca-Cola)
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 Rasna (powdered soft drink)
 Real (fruite juice from Dabur)
 Red bull (energy drink)
 Thums Up (Cola drink from parleargo then bought by coca cola)
 777 (soft drink) (Panner,Cola,Orange,Lemon,Clear Lemon Lime,Mango)

Soft drinks time line:

 1798 The term "soda water" first coined.

 1810 First U.S. patent issued for the manufacture of imitation mineral waters.
 1819 The "soda fountain" patented by Samuel Fahnestock.
 1835 The first bottled soda water in the U.S.
 1851 Ginger ale created in Ireland.
 1861 The term "pop" first coined.
 1874 The first ice-cream soda sold.
 1876 Root beer mass produced for public sale.
 1881 The first cola-flavored beverage introduced.
 1885 Charles Aderton invented "Dr Pepper" in Waco, Texas.
 1886 Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia.
 1892 William Painter invented the crown bottle cap.
 1898 "Pepsi-Cola" is invented by Caleb Bradham.
 1899 The first patent issued for a glass blowing machine, used to produce glass bottles.
 1913 Gas motored trucks replaced horse drawn carriages as delivery vehicles.
 1919 The American Bottlers of Carbonated Beverages formed.
 1920 The U.S. Census reported that more than 5,000 bottlers now exist.
 Early 1920's the first automatic vending machines dispensed sodas into cups.
 1929 The Howdy Company debuted its new drink "Bib-Label Lithiated Lemon-Lime
Sodas" later called "7 Up". Invented by Charles LeiperGrigg.
 1957 The first aluminum cans used.

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  1959 The first diet cola sold.
 1962 The pull-ring tab first marketed by the Pittsburgh Brewing Company of Pittsburgh,
PA. The pull-ring tab was invented by Alcoa.
 1963 The Schlitz Brewing company introduced the "Pop Top" beer can to the nation in
March, invented by ErmalFraze of Kettering, Ohio.
 1965 Soft drinks in cans dispensed from vending machines.
 1965 The reseal abletop invented.
 1966 The American Bottlers of Carbonated Beverages renamed The National Soft Drink
Association.
 1970 Plastic bottles are used for soft drinks.
 1973 The PET (Polyethylene Terephthalate) bottle created.
 1974 The stay-on tab invented. Introduced by the Falls City Brewing Company of
Louisville, KY.
 1979 Mello Yello soft drink is introduced by the Coca Cola company as competition
against Mountain Dew.
 1981 The "talking" vending machine invented.

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. 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 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
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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.

COCA COLA COMPANY PROFILE

Coca Cola was founded in the year 1886. In India its headquarters in Haryana. Coca-Cola
Company re-entered India through its wholly owned subsidiary, Coca-Cola India Private Limited
and re-launched Coca-Cola in 1993 after the opening up of the Indian economy to foreign
investments in 1991. In India their CEO was Atul Singh. Since then its operations have grown
rapidly through a model that supports bottling operations, both company owned as well as
locally owned and includes over 7,000 Indian distributors and more than 1.7 million retailers.
Today, our brands are the leading brands in most beverage segments.

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Hindustan Coca-Cola Beverages Private Ltd has thirteen authorized bottling partners of the
Coca-Cola Company, who are authorized to prepare, package, sell and distribute beverages
under certain specified trademarks of the Coca-Cola Company; and an extensive distribution
system comprising of our customers, distributors and retailers. Coca-Cola India Private Limited
sells concentrate and beverage bases to authorized bottlers who are authorized to use these to
produce our portfolio of beverages. These authorized bottlers independently develop local
markets and distribute beverages to grocers, small retailers, supermarkets, restaurants and
numerous other businesses. In turn, these customers make our beverages available to consumers
across India.

The Coca-Cola system in India directly employs over 25,000 people including those on contract.
As a Company, our products are an integral part of the micro economy particularly in small
towns and villages, contributing to creation of jobs and growth in GDP. Coca-Cola in India is
amongst the largest domestic buyers of certain agricultural products. As an industry which has
strong backward and forward linkages, our operations catalysis growth in demand for products
like glass, plastic, refrigeration, transportation, and Industrial and agricultural products. The
Coca-Cola Company has always placed high value on good citizenship. Our basic proposition
entails that our Company's business should refresh the market; enrich the workplace; protect and
preserve the environment; and strengthen the community.

We have used our distribution network for disaster relief, our marketing prowess to raise
awareness on issues such as PET recycling, and our presence in communities to improve access
to education and potable water. Their main competitor is Pepsi Co.

Product Profile:

Coca Cola: It was launched in the year 1886. It is the flagship brand of the largest manufacturer,
marketer and distributor of nonalcoholic beverages in the world.

Variety: Cans: 330ml

RGB: 200ml, 300ml,

PET: 500ml, 600ml, 1250ml, 1500ml, 2000ml, 2250ml

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 Fountain glass: Various sizes

Diet coke: Diet coke contains plenty of taste but no calories. Diet coke is also known as Coke
light in some countries. It was launched in 1982 in America has become the third largest soft
drink.

Variety: PET: 600ml

Can: 300ml, 330ml

Thums Up: Originally introduced in 1977. Thums Up was acquired by the Coca Coal company
in 1993.

Variety: Cans: 300ml, 330ml

RGB: 200ml, 300ml, 330ml

PET: 500ml, 600ml, 1250ml, 1500ml, 2000ml, 2250ml

Sprite: Since its inception is 1999, Sprite has not only established itself as a brand which
successfully boasts it's 'cut-thru' perspective with an authentic, edgy, irreverent, urban and
straight forward style, but has also achieved status of an undisputed youth 'badge' brand. Today
Sprite is the most preferred and fastest growing soft drink in India and has become the second
largest soft drink in 2009, aiming for the No.1 spot.

Variety: Cans: 300ml, 330ml

RGB: 200ml, 300ml, 330ml

PET: 500ml, 600ml, 1250ml, 1500ml, 2000ml, 2250ml

Fountain glass: Various sizes

Fanta: Fanta entered the Indian market in the year 1993. Perceived as a fun youth brand. Fanta
stands for its vibrant color, tempting taste and tingling bubbles.

Variety:

Cans: 300ml, 330ml

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 RGB: 200ml, 300ml, 330ml

PET: 500ml, 600ml, 1250ml, 1500ml, 2000ml, 2250ml

Fountain glass: Various sizes

Limca: It was launched in1971. Limca has remained unchallenged as the No.1 Sparkling Drink
in the Cloudy lemon Segment. The success formula is the sharp fizz and lemoni bite combined
with the single minded proposition of the brand as the provider of "Freshess".

Variety: Cans: 300ml, 330ml

RGB: 200ml, 300ml, 330ml

PET: 500ml, 600ml, 1250ml, 1500ml, 2000ml, 2250ml

Fountain glass: Various sizes

Maaza: It was introduced in the year 1970. Universally loved for its taste, color, thickness and
wholesome properties.Maaza is the mango lover’s first choice. In India introduced in 1976.

Variety: RGB: 200ml, 250ml

PET: 600ml, 1.2lt

Pocket pack: 200ml

Minute maid Pulpy Orange: The history of the Minute Maid brand goes as far back as 1945
when the Florida Food Corporation developed orange juice powder. They branded it Minute
Maid, a name connoting the convenience and the ease of preparation (In a minute).Launched in
2009.

Variety: PET: 400ml, 1lt, 1.25lt

Minute maid NimbuFresh: It was launched first in South of India in January 2010. Minute
Maid Nimbu Fresh started refreshing the whole India by April 2010.

Variety: PET: 400ml

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 RGB: 200ml

Tetrapack: 200ml

Burn: Burn is the Coca cola Company’s most successful energy drink brand. Successful world
over sold in over 80 countries across the world. Launched in North Europe in the year 2000 and
it has expanded to over 80 countries over a short 10 year period.

Variety: Can: 300ml

KinleyWater: kinley water comes with the assurance of safety from The Coca-Cola Company.
That is why we introduced Kinley with reverse osmosis along with the latest technology to
ensure purity of our product. Because we believe that right to pure, safe drinking water is
fundamental.

Variety: PET: 500ml, 1000ml, 2lt, 20lt, 25lt

KinleySoda: Launched in 2002 Kinley soda today no:1 national soda brand.

Variety: PET: 500ml

Schweppes: Schweppes was launched in India in 1999 after the international takeover of the
brand from Cadbury schweppes.

Variety: Bitter Lemon: (Glass bottle 250ml)

Tonic Water: (Glass bottle 250ml)

Ginger Ale: (Glass bottle 250ml)

Soda Water: (Glass bottle 250ml)

Georgia Gold: Introduced in 2004, Georgia Gold range of tea and coffee beverages is the
perfect solution for your office and restaurant needs.

Variety: Hot beverages: Coffee, Tea, Hot chocolate. Available in 90-150ml.

Cold beverages: Lemon Iced tea, Peach Iced tea, Cold coffee. Available in 200-400ml.

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Bottlers: In general, The Coca-Cola Company (TCCC) and/or subsidiaries only produces (or
produce) syrup concentrate which is then sold to various bottlers throughout the world who hold
a Coca-Cola franchise. Coca-Cola bottlers, who hold territorially exclusive contracts with the
company, produce finished product in cans and bottles from the concentrate in combination with
filtered water and sweeteners.
The bottlers then sell, distribute and merchandise the resulting Coca-Cola product to retail stores,
vending machines, restaurants and food service distributors.
One notable exception to this general relationship between TCCC and bottlers is fountain syrups
in the United States, where TCCC bypasses bottlers and is responsible for the manufacture and
sale of fountain syrups directly to authorized fountain wholesalers and some fountain retailers.
In 2005, The Coca-Cola Company had equity positions in 51 unconsolidated bottling, canning
and distribution operations which produced approximately 58% of volume. Significant investees
include: 36% of Coca-Cola Enterprises which produces (by population) for 78% of USA, 98% of
Canada and 100% of Great Britain (but not Northern Ireland), continental France and the
Netherlands, Luxembourg, Belgium and Monaco.

EXECUTIVE SUMMARY

This project is based on understanding the concept of consumer behavior towards soft drinks and
particularly towards brand Coca Cola. Even though every company identifies their target
customer and frames their advertising policies accordingly there is a need to know what people
think about the brand and how frequently they buy it.

Coca Cola is well known for its innovative advertisements and huge customer base. Even though
the company has their own loyal customers there is a need to identify what is the current market
pulse. It will help in developing all together a new brand or extending an existing brand.

The objective of this project is very clear that to know the consumption of soft drinks according
the income level, taste and brand preference of the consumers. Coca Cola not only has just cola
drinks but it is into many other types of drinks e.g. fruit based drinks, mineral water etc.

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Another important objective here is to find out the success of advertising and celebrity
campaigns which were run by the company. Everyone knows the Aamir’s TV commercial of
“Thanda Matlab Coca Cola” and “Sirf Panch Rupai Me”. In the similar manner company has
many other celebrity campaigns with Katrina Kaif, Kareena Kapoor and some other. So, it
become very important to know which advertisement has drawn maximum attention and what is
the conversion rate of TV commercials.

This project is based on a quantitative research where questionnaire was prepared for both
customers as well as retailers. 225 people were intervened from different areas of Mumbai. The
data of 120 respondents was collected online by sending them a virtual questionnaire. The
responses which were found online were also with different demographics.

Based on the responses by the respondents conclusion are drawn. All the data which was
collected and the conclusions were drawn is explained in detail in the further part of the project.

Literature Review
Coca-Cola is a non-alcoholic drink that is
marketed as a joyful and refreshing drink for
all age groups. Coca-Cola Company’s mission
statement is to refresh the world, inspire
moments of optimism and create value (“Our
Company,” 2009).  Coca-Cola’s values
include leadership, collaborations, integrity
and accountability but Coca-Cola’s practices
have serious implications that contradict its
values. Prospect theory gives marketers the
chance to use the customers’ risk-averse
behavior to steer their decision toward a
profitable choice for the company. Company practices are legal and ethical because the choice was made
by the customers who build it on their internal risk-averse behavior (Novemsky&Kahneman, 2005).

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Coca-Cola Company has more than 400 non-alcoholic beverages that include Coke, with
distribution and bottling operations in 200 countries (Holcomb, 2008). Coca-Cola brand strength
is supported by its worldwide distribution and availability (Peter & Donnelly, 2006). Coke is the
most famous soft drink produced by Coca-Cola Company and is consumed around the world.
Coca-Cola Company stated that their products are tested using European standards and did not
break any laws in India. However, Coke was found containing pesticides 24 times higher than
the European standard by an Indian
laboratory, which Coca-Cola discredit
(Burnett & Welford, 2007). The Indian
bottling plants consume large quantities of
water, which is much needed by the
farmers especially during seasonal
droughts (Burnett & Welford, 2007).
The principle “let the buyer beware” is
opposite to the relationship marketing
principle in which the seller seeks long-
lasting relationship with the customer. The relationship is maintained by stating the facts and
giving the necessary information to the customer. Relationship marketing takes part of the risk to
prevent any risk that the buyer may encounter from the selling and buying experience. “The
relationship marketing strategies are concerned with the development and enhancement of
relationships with a number of key markets” (Šimberová, 2007, p. 207). Marketers should not
subscribe to the caveat emptor principal because it makes the relationship between the seller and
the buyer deteriorate. Inks, Avila and Chapman (2004) found that buyers are more ethically
sensitive to unethical behavior. Buyers have stronger negative reaction to lying when this lying
was from the seller; however, the buyers were less sensitive to their deceit (lying) because they
justify it with the resulting low price.
Companies seek customer’s commitment by deferent means; however customer commitment can
result from satisfying the customer by offering him or her good product or service in exchange
for his or her money. Satisfaction comes from product quality and service quality, which is
supported by price fairness (Worrall, Parkes& Cooper, 2004). Polk (2008) state that managers
should be accountable for the company’s innovations and the change it leads to
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successfully. Managers should abandon old ideas when they become a threat to the organization
but learn that failures are opportunities to learn.  Peter Drucker stated that the organizations
profit is necessary to supply capital for future innovation and expansion (Drucker, 2004).

Chiung-Ju
and Wen-Hung (2008) listed different tactics the retailers use to enhance customer loyalty
that branch from financial, social and structural bonding activities. Financial bonding includes
discounts and interest rate. Social bonding is the relationship created between the two parties
during a business interaction and follow up interactions (Chiung-Ju& Wen-Hung, 2008). The
final tactic is structural in which the organization set up rules, policies and procedures to
structure its relationship with the customers.
Survey of 205 companies reported that more than 50% of surveyed companies are generating
75% of their sale from the existing customers (Carter, 2008). Customer loyalty is important
because almost all of the companies had lost a top customer to a competitor in the last three years
(Carter, 2008). The surveyed companies measure their customers retention that indicates the
company’s awareness of the customer retention importance (Carter, 2008). The most important
finding of Carter (2008) survey was the strong link between customer retention and customer
satisfaction. Companies would benefit of generating 75% of their sale from a satisfied and
retained customer.  On the contrary, East, Hammond, and Gendall (2006) state that customer
retention importance is overvalued and companies should target customer acquisition strategy.
Customer retention strategy gains are less than customer acquisition according to East,
Hammond, and Gendall (2006).
Palmatier et al. (2009) state that loyal customers will
experience strong pressure to reciprocate the benefits
they received from others when they receive good
service. People take the gratitude role when they
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receive benefits and suffer the guilt of not repaying the favor to the other party so the at least
remain loyal to the favor maker. Roehm and Brady (2007) state that half of the researched
customers switched brands because of a service failure or inappropriate response from the.
Relationship marketing strengthen the relation with the customers but these customers have
higher desire to revenge the brand when their complains are not addressed appropriately
(Grégoire, Tripp, & Legoux, 2009).
Customer Relationship Management (CRM) main function is to increase the profitable
customers’ retention effectively by building and maintaining positive relationships (Payne &
Frow, 2006). One of the main functions of CRM is to provide the organization with a single view
of the customer, in which view the information may be split into different disciplines and
categories (Tuck, 2008). Payne and Frow (2006) research on implementing a successful CRM
resulted in identifying four elements that start with assessing the organization’s readiness for a
CRM initiative to estimate the effort needed to establish CRM; and help in the next step of
managing the change wanted for the organization to adopted and implement CRM project. CRM
implementations should be treated as a project and managed as a project that necessitates
employees’ engagement (Payne & Frow, 2006). Tuck (2008) state that CRM should be
managing customer relationship but lately CRM became associated with software packages and
the difficulty of setting one up. Tuck (2008) claims that CRM projects shifted the organizational
focus to deploying and operating the software package instead of targeting business processes
that would deliver the segmented information in a useful way to the organization.
Crosby and Caroll III (2008) realized the difficulty in the customer management and suggested
the following guidelines to help the organization better manage its customers:
1. Stated customer goal: state customers expectations or what they would like to receive
from their relationship with the organization, and match them with the organizations internal
goals.
2. Set clear customer strategy to better serve the customer. The organizations can excel in
“operational excellence” like Southwest airline does or “product leadership” like Apple’s
innovative products or “customer intimacy” in the way Ritz-Carlton treat their customers.
These strategies would help serve and retain the customers.
3. Define customer governance by appointing a chief customer officer with a team and
resources to govern the customer’s needs.
21 | P a g e
4. Create roadmap for the customer’s external and internal goals and support them with a
strategy that ensures an adequate budget to the communication and motivation plans.
The three articles discuss the ease in losing the CRM focus to other unrelated issues like setting
up the CRM software package or forcing the CRM program into an organization although it is
not ready for the change required for CRM program.

OBJECTIVES & NEED FOR STUDY

 To understand impact of income on consumption of soft drinks in a month.

 To know the frequency of consumers buying soft drinks in a month.

 To know the kind of purchase (Planned\Impulse).

 To find out the most important factor while buying soft drinks.

 To know the preferences of people related to category of drinks available.

 To know what matters the most among Brand, Taste and Price/Discount/Offers.

 To know the quantity people buy every month.

 To know the advertisement effectiveness of Coca Cola (advertisement efforts being constant)

 To know which celebrity campaign people like/love the most.

22 | P a g e
 RESEARCH METHODOLOGY
The preparation of the report included extensive study of the organization and market research,
which was the primary source of the report. I have collected information from consumers by
preparing questionnaire.

Research design:

Descriptive research design:

Descriptive research design is a scientific method which involves observing and describing the
behavior of a subject without influencing it in any way. The importance of descriptive research
is:

 To describe characteristics of a population or a phenomenon.

 To determine the answers to who, what, when, where and how questions.
 To analyze the segment and target markets.
Research Design Descriptive research
Research Method Survey method
Research Instrument Structured questionnaire
Sample size 225
Sample area Mumbai
Sampling method Non-Probability/Convenience Sampling

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Sampling Design: Sample denotes only a part of the universe/ population. The sample
represents the population and is having the same characterizing as the population.

Sampling method: This type of sampling technique gives no assurance that every element has
some specific change of being included. It is clear that for the non-probability samples, there is
no way of calculating the margin of error and the confidence level.
Data collection design: A marketing researcher has to make a plan for collecting data which
may be primary data, secondary data or both.

Primary data: The primary data was obtained by administering survey method, guided by
questionnaire to the consumers. The following type of questions, were asked in the questionnaire

1. Multiple choice questions.

Secondary data: The secondary data are collected through various sources like

1. Secondary data are collected through internet related to company, competitors etc.
2. Review of articles being published on the topic in various magazines and newspapers

Questionnaire: The best way to collect data is to personally administer the questionnaires. The
advantage of this method is, the data can be collected from the respondent within short period of
time. Any doubts that the respondent might have on any questions could be clarified on the spot.

24 | P a g e
 FINDINGS, ANALYSIS AND INTERPRETATION
OF DATA

Findings/Facts about data:

Gender Occupation
Male 167 Student 151
Female 58 Professional 43
Total 225 Businessmen 14
Housewife 13
Other 4
Total 225

Income
Below Rs.5000 118 Consumption Pattern
Rs.5001-15000 29 Daily 16
Rs.15001-30000 29 Weekly 74
Rs.30001-45000 7 in 15 days 64
Rs.45000 and above 42 Monthly 71
Total 225 Total 225

Occasion
Purchase Type
Self will 100
Planned 69
Social Group 71
Impulse 156
Party 25 |48P a g e
Total 225
Other 6
Total 225
Type of soft drinks preference
Cola drinks 126
Orange drinks 29
Lemon drinks 34
Mango drinks 29
Other 7
Total 225

What consumer wants Motivation factors

Brand 88 Thirst 83
Taste 116 Occasions 57
Price/Offer/Discount 21 Festivals 16
Total 225 Parties 41
Offers 28
Total 225

P.M Consumption Place of purchase

Below 5 Liters 181 Super Market 32
5-10 Liters 43 Retail Shop 135
11-15 Liters 1 Bakery 35
More than 15 Liters 0 Other 23
Total 225 Total 225

Advertisement effectiveness
Fruit drink advertisement
Coca Cola 44 effectiveness
Sprite 57
Minute maid Pulpu orange 24
Thums Up 100
Minutemaid Mixed fruit 38
7Up 8
Maaza 90
Pepsi 5
Slice 30
Other 11
Frooti 43
Total 225
Total 225

Celebrity Campaign
Advertisement and sales Aamir Khan 69
Yes 91 Vijay 26 | Page
23
No 134 Katrainakaif 34
Total 225 Salman Khan 53
KareenaKapoor 46
Total 225
 INCOME WISE CONSUMPTION OF SOFT
DRINKS

70

60

50

40

30
Daily
Weekly
20 15 days
Monthly
10

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As all the marketing aspects being constant, in the above table we see that the people earning
below Rs. 5000 are the maximum consumers of soft drinks. Result also highlights this way

27 | P a g e
because most of the respondents are students. But even if you consider the other respondents the
consumption of soft drinks is very low.

We can see the sudden fall in the consumption of soft drinks when the income goes up. Same is
the situation till we reach the income level of 15001-30000 range above that we can see slight
changes but if we consider the average of daily, weekly, 15 days and monthly consumption it
comes to somewhat constant number.

The major finding here is the age group and income wise consumption pattern of soft drinks
consumers. Soft drink is what is closely related to youth and the consumption of the same in
youth is comparably high.

TYPE OF PURCHASE

Type of Purchase

Planned
31%

Impluse
69%

Whenever we have a festival any special occasion or a party, buying soft drinks for such events
is preplanned. In the similar manner were one is on go or in a retail store to purchase something
else and bought a soft drink is termed as unplanned or impulse purchase.

Identifying planned and impulse purchase is very important because we can know the impact of
BTL activities and merchandising done at store level.

28 | P a g e
Impulse includes both the aspects (personal will, merchandising effect) and also some other
aspects too. Planned purchase is mainly occasion based at it accounts to 31% of sales and the rest
i.e. 69% of sales is impulse.

FACTORS CONSIDERED WHILE PURCHASING

SOFT DRINKS

Factor considered while purchasing soft drinks

9%

Taste
Brand
Price/Offer/Discounts
52%
39%

The 3 important factors consumers consider while purchasing soft drinks is Taste, Brand and
Price. From the above table we find that half of the soft drink consumers are very particular with
the taste (52%). 39% of consumers are found to be very loyal to the brand and are very closely
associated with the brand they prefer.

People who are concerned for brands cannot be easily shifted from one brand to another because
for consumers brand is a trust, assurance of quality and much more and they will never ever want

29 | P a g e
to compromise with the same unless and until some other brand delivers superior value and
builds a good reputation.

9% of the consumers are concerned for price and are price sensitive these are the people who
tend to consume the soft drink only when they find special discounts, offers and price cut-offs.
This factor highlights that though the soft drink companies try to attract the customers by
offering them a discount price will not considerably help them in boosting the sales.

CONSUMPTION OF SOFT DRINKS IN THE

MARKET ACCORDING TO CATEGORY (DRINK
TYPE/FLAVOR)

Category
3%
Cola Drinks
28% Mango Drinks
Lemon Drinks
Other
56%

13%

Above diagram reflects the consumption of soft drinks according to the category. 56%
respondents have the preference to consume cola drinks that includes Coca Cola, Pepsi, Thums
up etc. The second most preferred category is the lemon based or lemon flavored drink with the
preference of 28% respondents. Mango drinks is preferred by only 13% respondents. When we
compare the number of brands available in lemon based and mango based the number of mango
basted drinks is considerably high. Though the market offerings of mango based drink are high
consumers for them are low. With the result of 28% respondents preferred lemon drinks there is
a scope for introducing new brands in this segment. On the other hand market for cola based
drinks is gradually growing and is just to reach the saturation stage. One thing to notice is that
among the entire respondents only 3% of them have said that they go for other than cola based,
30 | P a g e
mango and lemon. The apple flavor which is present in market with more than 5 to 6 variants
comes in 3% it tells that the market for apple based flavored drinks is so niche.

CONSUMPTION QUANTITY OF SOFT DRINKS IN

A MONTH

Consumption Quantity
0%

19%

Below 5 liters
5-10 liters
10-15 liters

80%

The above data show 80% of the respondents are the consume less than 5 liters in a month and
19% respondents are those who consume soft drink between 5-10 liters a month and hardly it
was found that the respondents consuming more than 10 liters of soft drinks a month. This data is
collected with the intention to know the per capita consumption of soft drinks in Indian market.
In 1990’s the per capita consumption of Cola based soft drinks was just above 30 ml a month but
the current trend show that it is definitely increased. This we can find from the above data that
every respondent at least consumes 500 ml and above.

If we compare Indian consumption quantity of cola based soft drinks to western countries it
seems to be very different. The per capita consumption of cola drinks in western countries is

31 | P a g e
between 30-40 liters a month. This show the difference of consumption quantity pattern of
Indian consumers.

We can say that even if at current state it is less than western countries it is gradually growing
this we can say from the per capita difference we achieved at current state to the previous state in
1990’s. (1990 = 30 ml, current 500 ml and above).

DIRECT IMPACT OF ADVERTISEMENT ON

SALES OF COCA COLA CONSUMERS

Impact of Advertisement on Sales

180
160
Number of customers

140
120
100
80
60
40
20
0
Yes NO
Response

ATL activities including TV advertisements are done with the intention to increase the sales but
not all the time. Television Advertisement not only has the objective of boosting the sale but it
also has other objective like increasing the awareness, building a brand, differentiating own
brand from competitors, creating the image in the minds of the customer, repositioning etc. But
from all the above helping the sales by ATL activities is one of the important aspect.

Companies spend huge amount on advertisement and promotions and discounts so as to increase
their customer base and generate more revenue. From the above table we come to know that TV
advertisement as created a direct impact on the minds of the respondents and they have chosen to
go and have Coca Cola after watching the advertisement. Whereas on the other hand more than

32 | P a g e
140 respondents from 225 were found negative as they dent have that much impact of
advertisement to go and have a Coca Cola. So the conversion ratio is 1:4 approximately.

COCA COLA CELEBRITY CAMPAIGNS AND ITS

RATE OF SUCCESS

Celebrity Campaigns
11%
Aamir Khan
31% Katreena kaif
20% Salman Khan
Kareena Kapoor
Vijay

15%
24%

Coca Cola came’s up with many commercial advertisements on TV some of them with models,
general public, with its consumers and some with Bollywood celebrities. Company pays huge
amount for hiring celebrities to endorse the brand and in return it expects to have a successful
campaign.

The success of the campaign is when it achieves the entire objective or sometimes exceeds the
same. Though the company has spent unequal amount on all the celebrities the duration of the
campaign is the same except Aamir Khan’s “5Rs. me Coca Cola” campaign which was the
longest running campaign for Coca Cola.

From the above table we can see the success of all the celebrity campaigns. Ranking at the top is
the campaign done with Aamir khan followed by the second most successful campaign with
Salman Khan. More than 50% success from celebrity campaigns and TV advertisement comes
from both the Khans.

33 | P a g e
Campaign with Kareena Kapoor has the success rate of 20% followed by Katrina Kaif with 15%
success rate. Campaign with Vijay was also successful but not that much if we compare it with
other celebrities who endorsed Coca Cola, Vijay stays with the success rate of 11%.

RECOMMENDATION & SUGGESTIONS

 From the study we come to know that income doesn’t matter in consumption of soft
drinks. I fact we saw a stable demand as the income rises.
 When we buy a durable or any other thing we plan for it compare it with other offerings
in the market and then buy but this is not the situation here. Most of the consumers of soft
drinks show the trend of impulse buying and it is never planned unless and until it’s a
party or special occasion.
 Study showed that taste and brand has the maximum impact on the consumers and to
which they are very concerned. But taste came to be the most important factor while
buying a soft drink. So we can say that it’s important to consider taste while introducing a
new variant and also to develop a good brand image.
 Study shows that consumption of different categories within soft drinks does not depend
on number of offerings and unexpectedly it was found that the lemon based market is the
second larger market following Cola based soft drinks. So it gives a great opportunity to
explore the lemon based soft drinks market by introducing a new brand.
 Consumption quantity of per capita is gradually increasing and the rate at which it is
increasing is higher than what it was before the year 2000. So even more number of
competitors entering the soft drinks market there is a huge scope to get the business and
establish a strong brand.
 Whenever a TV commercial is made the objectives of it should be very clear and should
ensure that proper and complete message is communicated to the consumers and then
analyze the outcome accordingly.
 TV commercials if were made with top priority to boost the sales than any other
objectives then it should be considered and should make the appropriate changes as the
conversion rate is 1:4 which can be improved.

34 | P a g e
 Celebrity campaigns will surely have an impact on consumers mind but a proper cost
benefit analysis should be done before having any such campaign because the cost of
having a celebrity in making a TV commercial is too high.

LIMITATIONS OF THE PROJECT

 This entire project is based on the study of only 2 months i.e. February and March of
2014. So the data may not be applicable in other seasons.

 Only few areas were covered from entire Mumbai so things may be different where the
study was not conducted.

 Some conclusions drawn by me based on the data are my own personal interpretation it
can be contradicting to some other expert’s opinion.

 Sample size of consumers i.e. 225 is less for the company to come to a conclusion and
take a major decision.

 The primary data obtained in just 2 months cannot be said completely valid in the same
period for next year due to changing trend.

35 | P a g e
 CONCLUSION
 Income is not the factor to be considered by all the soft drink companies because it hardly
is considered by consumers until and unless the brand is too premium and is not
affordably for an average earning individual.
 Making people more and more aware of the soft drinks and increasing the availability of
soft drinks can boos the sales and be the reason for overall increase in per capita
consumption of soft drinks.
 Availability is the most important factor is the sales comes from impulse buying so it
should be ensures that it is available at maximum number of places and in all the
appropriate quantities.
 Lemon based soft drinks showed a great impact on consumers having the second largest
soft drinks consumer base. So the one who wants to enter into soft drinks this category is
the best opportunity and can bring in good business.
 Name the company that doesn’t run behind to build a great brand? But here the study
shows that before thinking of a building a brand there is a need to look at the taste as
well. To introduce a new soft drinks a pilot study need to be done and it must come out
with the taste which is liked by the most. And then by introducing the same company can
come up with great marketing programs to build a good brand and differentiate it from
other revelries.
 It is not that by having most famous celebrity ensures the success of the TV commercial
but in fact it is the way he/she enacts and communicates the message to the consumers.
So a proper care should be taken and factors like theme of the advertisement, objectives,
style of delivering messages etc should be considered.
 Whenever we study consumer behavior towards anything there is a difference in results
because no one can control the behavior of consumers and no one can easily change the
behavior of the consumers.
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 BIBLIOGRAPHY & WEBSITES

Indian Infoline News Service,09:21, Mar 28, 2013

Websites:

http://www.in-beverage.org/

http://www.indiainfoline.com/Markets/News

http://smalallah.com/research

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 APPENDIX (QUESTIONNAIRE)
1. Personal Information:

Name: Gender M/F:

Age:
a.
b. < 20 years d. 31-40 years
c. 21-30 years e. 40 years and above

Occupation: Monthly Income :

a. Professional a. Below Rs.5000

b. Businessman b. Rs. 5001-15000
c. Student c. Rs. 15001-30000
d. House wife d. Rs. 30001-45000
e. Above Rs. 45000

2. Frequency of buying soft drinks. 3. What kind of purchase is it usually?

a. Monthly purchase a. Planned purchase
b. Weekly purchase b. Unplanned/Impulse
c. Daily purchase purchase

4. Usually you buy soft drinks for: 5. What kind of a soft drink you would
a. Yourself prefer?
b. Social Group(Partner, friend etc)
c. Party Cola Orange Lemon Mango
drinks drinks drinks drinks

Others (Please specify)

________________

6. What do you look for when you buy b. Taste

a soft drink? c. Price/Offer/Discount
a. Brand
38 | P a g e
 Occasions
Festivals
Parties
Offers
`Others (specify)
______________
7. Thing that motivates you for buying
a soft drink: (Tick only one)

Thirst- personal will

8. How much quantity do you purchase 9. Where do you purchase the soft
regularly? drinks?
a. Below 5litres a. Super markets
b. 5-10litres b. Retail shop
c. 11-15litres c. Bakery
d. More than 15litres d. Others ____________

39 | P a g e
10. Which cola drinks advertisement attracts you most? (Tick only one)

Coca cola
Sprite
ThumsUp
7up
Pepsi

11. Which fruit drinks advertisement attracts you most? (Tick only one)

Minute maid Pulpy orange

Minute maid Mixed fruit
Maaza
Slice
Frooti
12. Have you decided to purchase Coca cola product after watching advertisement?
a. Yes b. No
13. Which of celebrities endorsing Coca cola products do you like?
Rate according to your opinion: 5= Like most
4= Like
3= Neutral
2= Dislike
1= Dislike most

Celebrities Opinion Why?

Aamir Khan
Vijay
Katrina Kaif
Salman Khan
KareenaKapoor

14. Suggestions if any:

Thank You!

40