About Soft Drink: Soft drink market size for FY00 was around 270 m.

n cases (6480mn bottles). The market witnessed 5- 6% growth in the early‘90s. Presently the growth rate of soft drink industries in India is 22% as compare to the previous year. The market size for FY01 was around 7000 mn bottles & the market size for FY07 is expected to be 11000 mn bottles. In Nagpur city, market size for FY00 was around 0.04 m.n cases (9.6 lacks). The market witnessed 7 – 8% in the early ‘90’s. Soft Drink Production area: The market preference is highly regional based. While cola drinks have main markets in metro cities and northern states of UP, Punjab, Haryana etc. Orange flavoured drinks are popular in southern states. Sodas too are sold largely in southern states besides sale through bars. Western markets have preference towards mango flavored drinks. Diet coke presently constitutes just 0.7% of the total carbonated beverage market. Growth promotional activities: The government has adopted liberalized policies for the soft drink trade to give the industry a boast and promote the Indian brands internationally. Although the import and manufacture of international brands like Pepsi and Coke is enhanced in India the local brands are being stabilized by advertisements, good quality and low cost. The soft drinks market till early 1990s was in hands of domestic players like campa, thumps up, Limca etc but with opening up of economy and coming of MNC players Pepsi and Coke the market has come totally under their control. The distribution network of Coca cola had6.5 lakh outlets across the country in FY00, which the company is planning to increase to 8 lakhs byFY01. On the other hand Pepsi Co's distribution network had 6 lakh outlets across the country during FY00 which it is planning to increase to 7.5 Lakh by FY01. Types Soft drinks are available in glass bottles, aluminium cans and PET bottles for home consumption. Fountains also dispense them in disposable containers Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be further divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are carbonated drinks while mango drinks come under non carbonated category. The market can also be segmented on the basis of types of products into cola products and non-cola products. Cola products account for nearly 61-62% of the total soft drinks market. The brands that fall in this category are Pepsi, Coca- Cola, Thumps Up, diet coke, Diet Pepsi etc. Non-cola segment which constitutes 36% can be divided into 4 categories based on the types of flavors available, namely: Orange, Cloudy Lime, Clear Lime and Mango. The Soft Drinks in India industry profile is an essential resource for top-level data and analysis covering the soft drinks industry. It includes detailed data on market size and segmentation, plus textual analysis of the key trends and competitive landscape, demographic information, and descriptions of the leading companies.

Nagpur & Indian Market Scenario: Market Definition: The soft drinks market consists of bottled water. The brands that fall in this category are Pepsi. Any currency conversions used in the creation of this report have been calculated using constant 2004 annual average exchange rates. It provides the latest retail sales data. fruit/vegetable juice was in great demand in 2006. Cloudy Lime. CocaCola. economic/lifestyle influences. Clear Lime and Mango. Non-cola segment which constitutes 36% can be divided into 4 categories based on the types of flavours available. Soft drinks experienced another good year in 2006.Evolution of Soft Drink in India: Euro monitor International's Soft Drinks in India market report offers comprehensive guide to the size and shape of the market at a national level. It identifies the leading companies. India's soft drinks market will continue to grow apace in 2003. diet coke. packaging innovations. aluminum cans and PET bottles for home consumption. . with demand stemming from the rising populations in cities and the crumbling public infrastructure for tap water. carbonates. The positive growth in soft drinks in India was primarily driven by the increased demand for fruit/vegetable juice and bottled water. With rising disposable incomes and preference for healthy and natural products.be they new product developments. Fountains also dispense them in disposable containers Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft drinks. Cola. overcoming the obstacles presented by the difficulty in marketing to such a large and diverse population and the relatively high cost of packaging as a proportion of selling price. Diet Pepsi etc. allowing you to identify the sectors driving growth. The market can also be segmented on the basis of types of products into cola products and non-cola products. Forecasts illustrate how the market is set to change. juices and ready-to-drink (RTD) tea & coffee. concentrates. The market is valued according to retail selling price (RSP) and includes any applicable taxes. namely: Orange. Soft drinks are available in glass bottles. the leading brands and offers strategic analysis of key factors influencing the market . distribution or pricing issues. Thumps Up. Cola products account for nearly 61-62% of the total soft drinks market. Soft drinks can be further divided into carbonated and non-carbonated drinks. Much of this continued growth is likely to come from bulk/HOD water with demand for carbonates and packaged water remaining strong but increasing a little more slowly. functional drinks. lemon and oranges are carbonated drinks while mango drinks come under non carbonated category. Bottled water also continued its fast growth.

although these beverages produced dynamic growth rates from a low base in 2005 and 2006. with exceptionally hot weather there driving sales growth. The relatively low consumer awareness of functional drinks and RTD tea stems mainly from the lack of promotional activity. Parle Bisleri Ltd has steadily gained shares from the carbonates giants over the review period. carbonates. Still drinks remain the largest single sector. the sector as a whole was held back by almost flat consumption of unpackaged or loose alternatives. The battleground for beverages has moved from carbonates to bottled water and fruit/vegetable juice. followed by PepsiCo India Holdings Pvt Ltd in 2006. gained considerable ground in 2002. Thus. This has also helped Major Market Players: Coca Cola: Coca-Cola India Pvt. and producers will clearly try to capitalise on this rapid advance in years to come. The alleged harmful effects of pesticide residues in carbonates affected the image and consumption of carbonates negatively.The concerns about the safety of carbonates were renewed in the wake of the pesticides controversy in August 2006. The pesticides controversy resulted in an increasing number of consumers shifting towards perceived healthier beverages. the combination of high prices. Ltd maintains its leading position. On the other hand. CocaCola India Pvt Ltd maintained its leading position in soft drinks in India. While soft drink producers in western Europe bemoaned yet another cold. This performance is even more impressive given the fact that Indians do not tend to consume carbonates with meals and home consumption is low. Indian consumers were slow to accept new soft drink options such as functional drinks and RTD tea. according to Canadean. their counterparts in India were struggling to keep up with demand.a move that enabled affordable pricing to be implemented and one that resulted in sales of the pack size more than doubling. with manufacturers turning their attention towards these healthier . Helped by strong sales through roadside vendors. Carbonates. Similar concerns were voiced in2003. the report shows. loose or unpackaged still drinks account for over 90 per cent of total still drinks consumption. both maintained a comfortable lead over the other manufacturers. to emerge as the third ranked company in 2006. with a20 per cent increase in consumption helping fizzy drinks narrow the gap with their still counterparts. Manufacturers have marketed and positioned these products in large metropolitan cities. consumers increasingly preferred non-cola carbonates to cola carbonates. A new report from beverage industry analysts Canadean estimates that consumption in India leapt by 13 per cent as a result of the heat wave. restricted product availability and a lack of promotional activity led to the slow uptake of emerging soft drinks. Whilst the retail volume shares of Coca-Cola India and PepsiCo India slipped in 2006. bottled water and fruit/vegetable juice have long been popular beverages in India. wet summer in 2002. and while sales of packaged still drinks grew strongly. Within carbonates. on the other hand. The major carbonate producers reverted back to offering 20cl refillable glass. as result of the growing health concerns caused by the aftermath of the pesticides controversy.

With twelve ounces a bottle instead of the six ounces Coca-Cola sold. that's a lot / Twice as much for a nickel.From 1936 to 1938. vying for a slice of the growing pie. Thus. Soft drinks are expected to grow at a healthy pace over the forecast period. Pepsi turned the price difference to its advantage with a slick radio advertising campaign. Coming at time of economic crisis. India is following suit.". the strategy was cited by Promo Magazine as one of 16"Ageless Wonders" that "helped redefine promotion marketing.beverages. featuring the "Pepsi cola hits the spot / Twelve full ounces. Customers buying behaviour & retailers sellingbehaviour will be provide by this study. Initially priced at 10 cents." Relevance of the Study: We will come to know about the service & responsibility towards customersof soft drink retail sectors. Pepsi introduced the Pepsi Challenge marketing campaign wherePepsiCo set up a blind tasting between Pepsi-Cola and rival Coca-Cola. The Soft Drinks in India industry profile isan essential resource for top-level data and analysis covering the soft drinksindustry.then immediately spun the Loft Company off.During these blind taste tests the majority of participants picked Pepsi as thebetter tasting of the two soft drinks. PepsiCo took great advantage of thecampaign with television commercials reporting the test results to the public. the near-bankrupt Loft Company sued Guth forpossession of the Pepsi Cola Company. Pepsi Cola's profits doubled. In 1975. sales were slow. instead of the twelve ounces Pepsi sold at the same price. the campaign succeeded in boosting Pepsi's status. too / Pepsi-Cola is the drink for you. It includes detailed data on market size and segmentation. A growing consumer awareness about healthier soft drinks and the effects of the pesticides controversy mean that consumers are likely to opt for healthier alternatives over the forecast period. as consumer interest continues to surge forward. Since he had initially used Loft's finances and facilities to establishthe new Pepsi success. A long legal battle then ensued. A number of new players have entered fruit/vegetable juice and bottled water. Loft now owned Pepsi. but when the price was slashed to 5 cents. With consumer preferences shifting towards healthier options worldwide. and the two companies did a merger. Future soft drinks growth to come from healthier beverages. encouraging price-watching consumers to switch to Pepsi. In 1996. albeit from a low base. Pepsi: Pepsi gained popularity following the introduction in 1934 of a 12ounce bottle. The study will help to analyse thecustomer’s exact needs & wants. PepsiCo launched the highly successful Pepsi Stuff marketingstrategy. sales went through the roof. Pepsi's success under Guth came while the Loft Candy business wasfaltering. while obliquely referring to the Coca-Cola standard of six ounces a bottle for the price of five cents (a nickel). plustextual analysis of the key trends and . Much of the demand for soft drinks is expected to be for healthier beverages. withGuth losing. By 2002. sales of carbonates are expected to stagnate over the forecast period whilefruit/vegetable juice and bottled water are projected to experience robustgrowth. Functional drinks and RTD tea are expected to reproduce thedynamic growth of 2005-2006.

Research Methodology always depends on the following points: A) The increasing complexity of the Business Environment •Technological changes. company records. •Product changes. . It providestextual analysis of the industries prospects. retail outlets & shop kiosk). ResearchMethodology is totally based on problem of research what we have alreadyhave defined.sales force reports.And secondary sources like govt & trade report. The report provides a keen insight of soft drinkindustry in India by analyzing various market segments and retail formatspresent in the industry.competitive landscape. etc. measured by bothvalue and volume of market shares which are covered by manufacturerand/or brand. competitive landscape andleading companies with a two-year forecast of the soft drink industry. and descriptions of the leading companies like Pepsi & Coca-Cola. butis intended as a rough guide to the direction in which the market is likely tomove. This forecast is based on a correlation between past market growth and present market growth. We havecollected data in a same ratio from each segment mention above sothat research has carried right information. demographicinformation. It helps clients to understand the various types’products available in soft drink industry and their future scope. Problem Formulation: We have done this research on the basis on soft drink industry inNagpur market. It issupported by the key macroeconomic and demographic data affecting themarket by including the detail information on market size. businessmen. •Research & Development. likeindustry performance. volume and segmentation of market in India. RESEARCH METHODOOGY INOLVED Research Method: It is the most relevant requirement for any market researcher. Theforecast given in this report is not based on a complex economic model. Theoverview on opportunities and future forecast on the soft drink retailindustry helps the clients analyze the future course of direction and majorgrowth areas of the industry. According to Indian market scenario CocaColais the leading company and Pepsi is at second position. The project contains an executive summary anddata on value. future prospects. Primary sources like theindividuals (students. •IT changes. Scope of the Study: The report talks about the soft drink retail industry in our country. growth opportunities. The information has been collected from bothprimary sources and secondary sources.

e. Sampling Tool Questionnaire for consumer. govt & trade report. It provides only the guideline to theresearcher to move forward. Coca Cola is the most preferable brand in soft drink industry andsecond preferable brand is Pepsi. . Research design isthe conceptual structure within which research is conducted. sales force reports etc. System Sampling The sampling method followed in non-probability sampling. industry growth. Sample Size Sample size taken for consumer is 100. Research Design: It is a model. a questionnaire being drafted and data beingcollected by meeting soft drink retailers directly. Formulation of Hypothesis Consumer preference of soft drink industry in India is growing day by day &as well as in Nagpur also. company records. measurement andanalysis of data. On the basis of my work I have assumed that inNagpur. Judgement Sample Selection of individual who are good prospects for accurate information. Data Collection Techniques: a)Primary source: Data has been mainly collected form primary sources.e. As such the design includes an outline of researcher work from the writing of hypothesis and the operational implementation to the final analysis of data.B)Increase complexity of decision maker. b)Secondary source: Data have obtained regarding the information relates to soft drink industry profile i. present status of industrial background. I have developed the research designon the basis of data which have been collected. The method was combination of direct personal interview backed byquestionnaires method i. indicates a plan of action to be carried out inconnection of this research. itconstitutes the blue print for the collection.

Chapter-4 Conclusion: Thus it can be concluded that soft drink industry in India is growing day byday. From the facts it is revealed that the market for coca cola as mentioned in the SWOT analysis segment is encouraging. According to me. Growth rate Coca Cola . It focusers on it deficiencies and try to over come it than it will definitely grow more than any other beverage company in Pakistan.margin of Coca Cola is higher than Pepsi as well as applicable for retailers also. According to the distributor’s point of view. Quality & taste of Coca Cola’s product got better response from respondents as compare to Pepsi. It covers the large market segment. Consumerpreference of Coca Cola is better because they owned some brand which hasvery good brand image in India. It is the second largest usage in Pakistan. if Pepsi want to increase their consumer preference theyshould provide better service to retailers as well as consumers in terms ofavailability of product in market & wider product range than now. Coca Cola is the most preferable brand in soft drink industry and second preferable brand is Pepsi. My hypothesis was based on the consumer preference of Pepsi & Coca Cola. Still it has a great potential in Pakistan market. So it has a large margin for growth. Market Analysis Coca Cola Market Size Coca Cola is one of the leading beverage companies in Pakistan. consumer preference of Coca Cola is better thanPepsi just because of Coca Cola’s wide product range & availability of theproduct in Nagpur market.This thing also applicable for all over the Indian market also. After gathering all the facts &figures I am concluding that consumer’s preference of Coca Cola is better than Pepsi. According to the my research I have observed that consumer preferenceas well as market share of Coca Cola is higher than Pepsi in Nagpur market. I have assumed that in Nagpur.Data Analysis Chapter-3 Recommendation & Suggestion: From the analysis of the data and information gathered in the market Surveyconducted through questionnaire and personal interview it was found that inthe soft drink segment.

in recent years its market share was 16% but in 2007 its market share increased up to 36%. If customers don’t find the taste of product according to their taste. increases the bargaining power of the customers and they can switch of to more suitable product. . Coca Cola is world leader in beverages.  Income Income level of the customers had a great impact on the demand of the product.In Pakistan market the growth rate is 22% which is a significant rate. Major factors influencing the level of demand of the product There are a lot of factors that affect the demand of the product.  Taste Taste of product is the major factor that affects the demand of the product. The list of these factors is given below  Price Price is the major factor that affects the demand of the product. and is on the way to success inPakistan and has crossed the Pepsi last year. Can the market be broken down in to segments? The coca Cola has a wide range of consumer. than they will not buy that product in future. on the other hand its competitors share is going down day by day. This is the reason they choose youngster in their advertisement as well. It directly relates to the purchasing power of the customer.  Quality If a company provides the quality services or products than the demand of the product also increases. So increased alternatives.  Supply Supply and the demand of the product are the market forces and played the main role in the product demand. Similarly In Asia region the amount of revenues which company earn is 5052 dollar. If customer has a purchasing power than definitely he can buy the product which he/she demand. If the supply of the product decreased than in some cases the demand of the product increase as well as the price f the product can also increased. Market Share Coca cola has doubled its market share in Pakistan. If the price Is not suitable to the consumers or customers than they will switch of the product.. If competitors offer the same products as the company offers than the customers got more alternatives.  Competitors Competitors are the biggest threat to the demand of product. In the quality of the product the consistency in the performance of the product is very important.  Number of users If the number of users increase in the market than the demand of the product also increases. Like if the product is of good taste than the future demand of the product will increase and vise versa. Though its market is very large and almost all are f its customers regardless of age and gender but the youngsters are it’s the largest most favorable target audiences.

Coca-Cola. Its ads stimulate its purchase regardless of weather or cyclic factors. The brands also have personality and thus also affected by the different situations like weather.02% compared to last year. it can force the product into the decline stage. . Coke knows that they must begin to acknowledge the shift in consumer tastes in order to remain competitive. Its advertisement removes the risk of no use of brands on different extreme weathers like in winters. Coke’s core product. the soft drink company is attempting to effectively seek new markets. This percentage has no comparison to the high level of growth Coca-Cola enjoyed during its growth stage. According to Coca-Cola’s 2001 annual report. sales have increased by 1. This is the stage in which the product in placed in the market for consumer use. Coca-Cola (Coke) is in maturity stage but gradually moving towards the declining stage of the product life cycle. find new uses for it. They have done this successfully many times in the past. Sales begin to increase and expenses tend to decrease during the growth phase. If a new product comes in at this point with new. Coca-Cola has been in the industry since the nineteenth century. In the introduction phase of the life cycle.Company can also largely focus on youngsters to set the target market. Consumers begin to take the product for granted and no longer necessarily choose it first. so if they continue with the same marketing strategy. change the soda. But their current strategy is most suitable because customers regardless of age factor like Coca Cola as soft drink. They are introduced. The company must now determine whether they will stop producing Coca-Cola. Management has to pay special attention to products during this stage of the product life-cycle. occasions. Eventually sales will begin to decline and the company must decide whether to continue with production or to part ways with the product. At the moment. has received many criticisms because of the health issues that arise from its use of caffeine and high fructose corn syrup. more attractive features. Demand of the product doesn’t remain consistent because it exists in the real world which is gradually changing. products usually go through a slowdown in sales growth. start-up expenses are high and sales are low. as can be seen with the introduction of their popular Diet Coke brand. This is the point in which the product becomes more known in the market and consumers begin purchasing. economical factors etc. Similarly on different events the buying patterns also changes. the company must re-examine the product and determine new ways to make it marketable. Product Life Cycle Products go through various steps throughout their useful lives. grow. Coca Cola advertisement has a great affect in its demand. 2006). seek new markets for the soft drink or if they will maintain their current strategy (Peter. then they will send themselves irrevocably into the decline stage. Company has a great strategy that they use those events as their strengths and advertise their product on right time which results in increase sale. mature and eventually decline. events. During the mature phase of the product life cycle. Coke must break into the noncarbonated drink market in order to acknowledge consumer’s new interest in healthy drinks During the maturity stage. Fluctuation in demand with cyclical factors Nothing is in isolation in this world.

change the soda. 2006). Its advertisement removes the risk of no use of brands on different extreme weathers like in winters. Similarly on different events the buying patterns also changes. They have done this successfully many times in the past. The brands also have personality and thus also affected by the different situations like weather. occasions. Coke must break into the non-carbonated drink market in order to acknowledge consumer’s new interest in healthy drinks During the maturity stage. Demand of the product doesn’t remain consistent because it exists in the real world which is gradually changing. as can be seen with the introduction of their popular Diet Coke brand.02% compared to last year. At the moment. sales have increased by 1. economical factors etc. According to Coca-Cola’s 2001 annual report. find new uses for it. Coca Cola advertisement has a great affect in its demand. . This percentage has no comparison to the high level of growth Coca-Cola enjoyed during its growth stage. seek new markets for the soft drink or if they will maintain their current strategy (Peter. Coke knows that they must begin to acknowledge the shift in consumer tastes in order to remain competitive. products usually go through a slowdown in sales growth. has received many criticisms because of the health issues that arise from its use of caffeine and high fructose corn syrup. Company has a great strategy that they use those events as their strengths and advertise their product on right time which results in increase sale. the soft drink company is attempting to effectively seek new markets. Its ads stimulate its purchase regardless of weather or cyclic factors. Coke’s core product. events. Coca-Cola. Fluctuation in demand with cyclical factors Nothing is in isolation in this world.they will stop producing Coca-Cola.