A COMPARATIVE STUDY ON CONSUMPTION PATTERNS OF SOFT

Submitted By Nizakat Ali

University of lahore

Acknowledgement
I would like to thanks Zulfqir Moeen who has been a constant source of inspiration and my special thanks to my group members that the give me guidance, cooperation and support. Finally, I wish to express my gratitude to all those who have in one way or other helped me in the successful completion of my project report.

EXECUTIVE SUMMARY
Soft Drinks were common preference among all the individuals before juices were being introduced, With the changing lifestyle and income levels, people are shifting their consumption patterns and have therefore become more health conscious thus leading to increase in demand of juices. Market Research is based on some underlying parameters like: Changing consumption pattern Health factor Status consciousness

Varying lifestyle The basic subject matter of the research, comparative analysis of Soft Drinks and Juices is focused to study the mind/taste of different age group of people. The study starts with determining the major players in the soft drinks and the juices market, their overall consumption pattern among the people and ends up with the conclusion as per the state of mind of the average rational human being.

INTRODUCTION
A drink, or beverage, is a liquid specifically prepared for human consumption. In addition to basic needs, beverages form part of the culture of human society. or any liquid suitable for drinking; "may I take your beverage order?" or A liquid to consume, usually excluding water; a drink. This may include tea, coffee, , milk, or soft drinks

Kind of product
The various types of beverage are: Soft drinks Fruit juice Hot beverages Other

3. Soft drinks
. Beverages like colas, sparkling water, iced tea, lemonade, squash, and fruit are among the most common types of soft drinks, while hot chocolate, hot tea, coffee, milk, tap water, alcohol, and milkshakes do not fall into this classification. Many carbonated soft drinks are optionally available in versions sweetened with sugars or with non-caloric sweeteners.

4. Fruit juice
Juice is a liquid naturally contained in fruit or vegetable tissue. Juice is prepared by mechanically squeezing or macerating fresh fruits or vegetables without the application of heat or solvents. For example,orange juice is the liquid extract of the fruit of the orange tree. Juice may be prepared in the home from fresh fruits and vegetables using variety of hand or electric juicers. Many commercial juices are filtered to remove fiber or pulp, but high pulp fresh orange juice is a popular beverage. Juice may be marketed inconcentrate form, sometimes frozen, requiring the user to add water to reconstitute the liquid back to its "original state"

5.Hot beverages
Hot beverages, including infusions. Sometimes drunk chilled. Coffee-based beverages

Coffee Flavored coffees (mocha etc.) Hot chocolate Tea-based beverages Flavored teas (chai etc.) Green tea Tea Herbal teas

OVERVIEW OF THE INDUSTRY

The beverage market is worth $55 billion worldwide. The tides are turning for many beverage categories. While the carbonated soft drink is merely treading water with flat sales, the energy drink category is surging ahead like never before. Bottled water, ready-to-drink coffee, ready-to-drink tea and sports drinks follow close behind with substantial sales increase- drinks without

added sugar, no beer, along with developments in juice drinks and dairy-based drinks, are helping to turn around sales in these categories. What follows is a category-by-category look at the state of the beverage industry, including the top brands, new products, innovations and future trendsetters. In order to be successful in the marketplace, one has to think in terms of health innovation, flavor innovation, ingredient innovation and specific age groups. These are the factors that will shape the future of the beverage industry like gourmet. Todays consumers are concerned with overall health and wellness. As a result, there significant impact on food and beverage purchases. Many studies have shown that consumers are as concerned with good health as they are about maintaining a high quality of life. Beverage Industry wanted to know the answers to these questions and to delve deeper into the ever-increasing number of new product launches in the beverage market. The soft drink industry is training people to seek out new products, even the big guys are coming out with limited-edition flavors, and consumers are beginning to see that there is more flavor activity going on in the category. Whether that really nets anybody any sales gains is another thing, but it is teaching consumers to seek out and try new products. Its also trying to create some excitement there. In spite of several challenges and restrictions faced by this industry, it is a roll like never before. Customer preferences may have shifted, but they are still always on the look out for a can of coke or a new flavored drink to quench their thirst. connecting Delhi to Jaipur, Dehradun, Agra to drive trails and consumer education.

7. Coke launches fruit-flavoured Fanta Apple nationall

, Coca-Cola Pakistan has launched its fruit-flavoured soft drink 'Fanta Apple' nationally. The product is available in 200 ml and 300 ml returnable glass bottles and also in 500 ml PET pack priced at Rs 20 Rs 25 and Rs 30 respectively. During the Fanta Apple launch in October 2008, Venkatesh Kini, marketing vicepresident,

Coca-Cola Pakistan, said that the company had planned to reach about 3.5 lakh customers with sample apple flavoured drink to extend its market leadership in the fruit flavoured segment in Andhra Pradesh and Tamil Nadu. "As per consumer research, we have found that after orange, apple is the most preferred fruit in the country and Fanta Apple has been developed specially for the pakistan palate," Kini said on. According to experts, the nationwide launch of Fanta Apple is a part of the company's $250 million business plan for the country. Fanta Apple is the second flavour after Fanta Orange under "Fanta" brand of the company. "We have had an excellent response down south with a reused value to the drink and with the national launch of Fanta Apple, we are stepping stones to extend Coca Cola pakistan's market leadership in the fruit-flavoured sparkling drink segment. According to reports, the current expected pakistan soft drink market is about Rs 6,000 crore, in which the company shares about 50% market with its various brands like Coke, 7 Up, Fanta, Sprite and .

Promotions
SOFT DRINKS
Carbonated drinks are dominated by artificial flavors based on cola, orange and lime with Pepsi and coca-cola dominating the market. The entire part of the drink is based on its artificial flavors and sweetening agents as no natural juice is used.

MARKET
Cola products account for nearly 61-62% of the total soft drinks market. Two global majors Pepsi and coke dominate the soft drink market. NCAER survey says 91% of soft drink in the country is in the lower, lower middle and upper middle class people. The market is worth around Rs.5000 crores with growth rate of around 10-15%. The production as soft drinks has increased from 5670 million bottles in 1998-99

to 6230 million bottles in 1999-2000 and 9450 in 2006-2007 industry source. Growth market this year is expected to be 10-15% in value terms and 20-22% in volume terms. However, the market for carbonated drinks is stagnating and not growing as expected

MAJOR PLAYERS IN SOFT DRINKS SEGMENT

COCA COLA:
Coca cola has truly remarkable heritage. From a humble beginning in 1886 it has now become the flagship brand of largest manufacturer, distributor of non alcoholic beverages in the world. In pakistan, coca cola was the leading soft drink till 1977 when govt. policies necessitated its departure. Coca cola has made its return to the country in 1993.and made significant investment to ensure that the beverage is available to more and more people in remote as well as inaccessible parts of the world. Coca cola in pakistan captured then imagination of the nation, building strong association with cricket, the thriving cinema industry, music etc. coca cola has been very strongly associated with cricket, sponsoring the world cup in 1996. In 2002, coca cola launched the campaign,Thanda Matlab coca cola. in 2003,coke was available for just rs,5 crores in the country.

FANTA :
Fanta entered the pakistan market in year 1996 under the coca cola brand .over the years, Fanta has occupied a strong market place and is identified as the fun catalyst. Fanta stands for its vibrant color, tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment .

SPIRITE:
World wide sprite ranked as no.4 soft drink and is sold in more than 190 countries it has grown to be one of the fastest growing soft drinks, leading clear lime category. Today sprite is perceived as a youth icon. With strong appeal to youth sprite has stood for a straight forward and honest attitude. Its clear crisp hingtaste encourages todays youth to trust their instincts, influence them to be true who they are and to obey their thirst.

PEPSI:
Pepsi cola is a carbonated beverage that is produced and manufactured by Pepsi co. It issold in stores, restaurants and from vending machines. The drink was first made in the 1890s in North Carolina. The brand was trademarked on June 16, 1903.There have been many Pepsi variants produced over the years. Diet Pepsi Pepsi twist Pepsi max

STUDY OF GROWTH OF FRUIT DRINK MARKET

FRUIT JUICES
Branded fruit juice market in Pakistan holds an immense potential. Usually confused and considered synonymous with non-aerated drinks, fruit pulps, juices and squash are high sugar beverages, which are centrifuged and filtered to give a semiclear appearance. In the past, this sector enjoyed an excise exemption, keeping cost at minimal. However the withdrawal of exemption has inflated costs and can affect growth, with dramatic change possible on reintroduction of excise exemption.

MARKET
The organized fruit beverage market is estimated at Rs.500 crores market. drinks and juices combined).

The market has grown at a 20% to 25% rate. Of this, more expensive juices segment has grown at rate of 40%this year. It accounted for only 15% of the fruit beverage 3 years back. In home consumption of juices has gone up from 30%, three years back to 80%today. Mango based drinks account for two thirds of fruit drinks industry.

MAJOR PLAYERS IN THE FRUIT DRINK SEGMENT

Nestle brand real fruit juice is a market leader in packaged fruit juice category. Real was launched in 1996 and the brand has carved a niche for itself by claiming to be the only fruit juice in packaged form .i.e.100%preservative free. Real, with market share of 57% comes in nine flavors: Pineapple mango Mix fruit Grape Guava Apple Orange- carrot Pineapple Apple Orange Godrejs xs is a range of fruit nectar with more fruits. Its available in following flavors: Orange Apple Grape

Prices of product

They target all classes upper level to low level classes with reasonable prices in which they can easily afford the orange joice is Rs 15 apple joice Rs 18 in joice segment and segment of soft drink they uses different price accouding to utility of product

Socioculture environments
In socioculture envinment the target different age group such like joice is best for good healthin the cause of deases the people want the joice in sammar the people want this so due to these ability they attract the consumer and consumer and advertise it television for motivate the consumer they run the add on t.v suger free joice so that the consumer take the decion to buy it.

RESEARCH METHODOLOGY METHODOLOGY

Every project work is based on certain methodology, which is a way to systematically solve the problem or attain its objectives. It is a very important guideline and lead to completion of any project work through observation, data collection and data analysis.

According to Clifford Woody,

Research Methodology comprises of defining & redefining problems, collecting, organizing &evaluating data, making deductions &researching to conclusions. Accordingly, the methodology used in the project is as follows: Defining the objectives of the study Framing of questionnaire keeping objectives in mind (considering the objectives) Feedback from the respondents Analysis of feedback Conclusion, findings and suggestions.

PURPOSE OF THE STUDY

The main aim of this research study is to analyze the preference of people (of different

age groups) on consumption patterns of Soft Drinks and Fruit Juices. 35

OBJECTIVE OF THE STUDY

To study the preferences of the people for soft drinks and fruit juices. To find out the factor(s) that influences the consumers consumption of soft drinks and fruit juices. To test the know-how of the consumers regarding the various existing brands of soft drinks and fruit juices. To explore the next best beverage after soft drinks and fruit juices. To find out how the beverage is positioned in the mind of the consumers.

SCOPE OF THE STUDY

This study is confined to Lahore covering the ereas of thokar Niaz baig hafeez center barkat market and achra Seasonal drinks are not considered in the study. We are considering only canned juices. We are not considering water & alcoholic drinks.

RESEARCH DESIGN
A research design is a framework or blueprint for conducting the marketing research project. It specifies the details of the procedures necessary for obtaining the information needed to structure and/or solve marketing research problem. On the basis of fundamental objectives of the research we can classify research design into two general types: external research Once the consumer has decided they have a need, they search through their mind for information on the product or service. After this, they may use the Internet, contact friends, or go to retail locations to learn more about a product. Some consumers will search for information for a long time, whereas others will make the search as short as possible. The time of the search can be related to the complexity and price of the

product, the situation, experience with the product, or the social acceptability tied to the product.

EXPLORATORY RESEARCH
Exploratory research is one type of research design, which has its primary objective the provision of insights into, and comprehension of, the problem situation confronting the researcher. Conclusive research is designed to assist the decision maker in determining evaluating and selecting the best course of action to take in a given situation. Conclusive research can be further divided into two types:Descriptive Experimental The research design used in this project is a DESCRIPTIVE DESIGN. Descriptive study as the name implies is designed to describe something-for example the characteristics of users of a given product, the degree to which the product use the varies with income, age, etc.

SAMPLING TECHNIQUE USED:

This research has used convenience sampling technique. 1) Convenience sampling technique: Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient.

SELECTION OF SAMPLE SIZE:

For the study, a sample size of 100 has been taken into consideration.

SOURCES OF DATA COLLECTION:

Research will be based on two sources: 1. Primary data 2. Secondary data

1) PRIMARY DATA:

Questionnaire: Primary data was collected by preparing questionnaire and the

people were randomly being requested to fill them.

2) SECONDARY DATA:
Secondary data will consist of different literatures like books which are published, articles, internet and websites. In order to reach relevant conclusion, research work needed to be designed in a proper way.

STATISTICAL TOOLS USED

The main statistical tools used for the collection and analyses of data in this project are: Questionnaire Pie Charts Bar Diagrams

DATA ANALYSIS & FINDINGS

Q1. What do you prefer to drink? (Tick any 1)

Particulars Soft Drinks Fruit Juices

Total

No. of Respondents
57 43 100

Percentage
57% 43% 100%

60 50 40 30 20 10 0 fruit joice
ANALYSIS:
100 50

soft drink

From the survey it was found that amongst 100 respondents

0 1st Qtr

a) 57% of the respondents prefer Soft Drinks to drink. b) 43% of the respondents prefer Fruit Juices to drink.

Q2. Frequency of consumption of your preferred drink in a week?

Soft Drink Particulars Daily 2-6 times Above 7

ANALYSIS:

No. of Respondents 28 23
6 57

Percentage 49% 40%

11% 100%

From the survey it was found that amongst 57 respondents. a) 49% of the respondents consume Soft Drinks daily. b) 43% of the respondents consume Soft Drinks 2-6 times. c) 11% of the respondents consume Soft Drinks more than 7 times.

Soft drink

60% 50% 40% 30% 49% 20% 10% 11% 0% Daily 2-6 time above 7 40%

ANALYSIS: From the survey it was found that amongst 100 respondents. a) 18% of the respondents consume Soft Drinks when they feel thirsty. b) 45% of the respondents consume Soft Drinks at the time of celebrations. c) 25% of the respondents consume Soft Drinks without any reason. d) 12% of the respondents consume Soft Drinks on other occasions.

Q4. On what occasions, do you often consume the Fruit Juices? Frout Joice

Particulars Daily 2-7time Above7 Total

No. of Respondents 10 30 3 43

Percentage 23% 70% 7% 100%

ANALYSIS: From the survey it was found that amongst 100 respondents.

35 30 25 20 15 10 5 0 daily
ANALYSIS: From the survey it was found that amongst 43 respondents. a) 23% of the respondents consume Fruit Juices daily. b) 70% of the respondents consume Fruit Juices 2-6 times. c) 07% of the respondents consume Fruit Juices more than 7 times.

30

10 3 5-7 time above 7

Q3. On what occasions, do you often consume the Soft Drinks?

Particulars Feeling Thirsty

Parties / Celebrations Without any reason (just like that

No. of Respondents
18 45 25 12 100

Percentage
18% 45% 25% 12% 100%

Others
Total

12%

18%

Feeling Thirsty Parties / Celebrations Without any reason (just others

25%

45%

ANALYSIS: From the survey it was found that amongst 100 respondents. a) 18% of the respondents consume Soft Drinks when they feel thirsty. b) 45% of the respondents consume Soft Drinks at the time of celebrations. c) 25% of the respondents consume Soft Drinks without any reason. d) 12% of the respondents consume Soft Drinks on other occasions. Q4. On what occasions, do you often consume the Fruit Juices?

Particulars Feeling Thirsty

Parties / Celebrations Without any reason (just like that)

No. of Respondents
17 32 24 27 100

Percentage
17% 32% 24% 27% 100%

Others
Total

feeeling Thirsty 17% 27% parties /celebration without any reason (just like that) others

32% 24%

ANALYSIS: From the survey it was found that amongst 100 respondents. a) 17% of the respondents consume Fruit Juices when they feel thirsty. b) 32% of the respondents consume Fruit Juices at the time of celebrations. c) 24% of the respondents consume Fruit Juices without any reason. d) 27% of the respondents consume Fruit Juices on other occasions.

Q5. What induces you to buy Soft Drinks?

Particulars
Price with quantity Health Drink Status symbol Taste Variety Total

No. of Respondents
30 4 8 32 26 100

Percentage
30% 4% 8% 32% 26% 100%

35 30 25 20 15 10 5 0 price with quantity 4 Health Drink 8 Status Symbol Taste variety 30 32 26 West

ANALYSIS: From the survey it was found that amongst 100 respondents. a) 30% of the respondents consume soft drinks because of its price. b) 04% of the respondents consume soft drinks because it is a health drink. c) 08% of the respondents consume soft drinks because it is a status symbol. d) 32% of the respondents consume soft drinks because of its taste. e) 26% of the respondents consume soft drinks because of its variety.

Q6. What induces you to buy Fruit Juices?

Particulars
Price with quantity Health Drink Status symbol Taste Variety Total

No. of Respondents

Percentage

13 40 15 22 10 100

13% 40% 15% 22% 10% 100%

45 40 35 30 25 20 15 10 5 0

40 13
price with quanity Health Drink

West

15
Status Sumbol

22 10
Taste variety

ANALYSIS From the survey it was found that amongst 100 respondents. a) 13% of the respondents consume fruit juices because of its price. b) 40% of the respondents consume fruit juices because it is a health drink. c) 15% of the respondents consume fruit juices because it is a status symbol. d) 22% of the respondents consume fruit juices because of its taste. e) 10% of the respondents consume fruit juices because of its variety.

CONCLUSION
An important finding that emerged out of the survey was that 57%of people like to have soft drinks while 43% go for juices. Through the research it was conveyed that weekly consumption of soft drinks is higher than the weekly consumption of juices. A majority of the respondents consume soft drinks and fruit juices at the time of parties & celebrations. Most of the respondents consume soft drinks because of its taste and price. Most of the respondents consume fruit juices because it is healthy.

As it is seen that canned Juices enjoys the largest market share though they do contain some preservatives but majority of the respondents consider it healthy. Most of the respondents view soft drinks as an aid to put off thirst and fruit juice as a health drink. Most of the respondents (77%) were of the strong view that advertisements affect their purchases and the rest (23%) were not at all affected by

SUGGESTIONS
With the changing lifestyle, people have started becoming more health conscious. Therefore, the fruit juice companys should use appropriate marketing techniques thereby reducing the demand for soft drink in the future. The survey shows that parties/celebrations are the places where these drinks are consumed mostly. The companys must try to increase the sales by creating and focusing on more utilities so that their product is used more frequently. As it is seen that people consider canned juices to be healthy with preservatives. This shows that awareness level of the people is low and needs to be corrected. Therefore, various methods like campaigns by government, help by media, etc can be taken to change this.

. Q1. What do you prefer to drink? (Tick any 1) a) Soft Drinks b) Fruit Juices Q2. Frequency of consumption of your preferred drink in a week? a) Soft Drinks, Daily b) Fruit Juices, Daily 2-6 times 2-6 times Above 7 Above 7 Q3. On what occasions, do you often consume the Soft Drinks? a) Feeling Thirsty b) Parties / Celebrations

c) Without any reason (just like that) d) Others, please specify ________ Q4. On what occasions, do you often consume the Fruit juices? a) Feeling Thirsty 58 b) Parties / Celebrations c) Without any reason (just like that) d) Others, please specify ________ Q5. What induces you to buy Soft Drinks? a) Price with quantity ______ b) Health Drink ______ c) Status symbol ______ d) Taste ______ e) Variety ______ Q6. What induces you to buy Fruit Juices? a) Price with quantity ______ b) Health Drink ______ c) Status symbol ______ d) Taste ______ e) Variety ______ Q7. If not a Soft Drink or a Fruit juice, which other beverage (other than water) tops your mind? a) Coffee b) Tea c) Shakes (Milk/Ice-cream/Fruit) d) Lassi e) Sharbat Q8. How do you rate canned juices as compared to fresh juices? a) Equivalent to fresh juices b) Have artificial added flavor c) Healthy with preservatives

BIBLIOGRAPHY
http://en.wikipedia.org/wiki/Beverage www.foodindustriespakistan.com www.google.com