Consumer Preference in Beverage Market RESEARCH METHODOLOGY

Flow of Presentation
‡ Introduction ‡ Research Purpose and Process ‡ Research Objective ‡ Research Design ‡ Data Analysis and Findings ‡ Limitations ‡ Conclusion

Introduction
‡ Beverage market in India is worth $2074.67 million ‡ Major portion of the market dominated by the carbonated soft drinks but major shift towards the Juice segment ‡ There was a growth of 31.52% in the Juice segment from 2009 to 2010 ‡ New brands have flooded the market ‡ Need to identify and evaluate the reasons for the shift in the consumer purchasing pattern

Research Process
‡ Objective ‡ Research Design ‡ Concept, Proposition, Variables, Hypothesis ‡ Gathering of data ‡ Analysis of data ‡ Test, revising of hypothesis ‡ Conclusion, iteration if necessary

Research Objective
‡ To study the preferences of the people for soft drink beverages, fruit juices, tea, coffee ‡ To find whether the consumers are aware regarding the adverse effect of soft drinks concerning their health ‡ To find out the factor(s) that influences the consumer s consumption of soft drinks ‡ To test the know-how of the consumers regarding the various existing flavors of soft drinks and fruit juices ‡To determine the preference of the consumer in the beverage consumption market

Research Design
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 beverages and consumer awareness regarding the health consciousness of consuming each of the beverages. Concept 1. Stimulus/Option 2. Consumers beverage preference

Research Design
Proposition Perception about the beverage will result in change in consumption of aerated soft drink beverages, Tea, Coffee, Fruit Juices and health drinks. Variables ‡Number of consumers ‡Age group ‡Beverage Preference ‡Monthly consumption ‡Pricing Hypotheses Beverage preference of people change based on health consciousness, price and packaging

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 have used: EXPLORATORY RESEARCH

EXPLORATORY RESEARCH
Secondary Research External secondary data has been generated to obtain volume of sales regarding beverage markets, fruit drinks, each of the brands and the positioning of each of the brands. Experience Survey Through questionnaire

Conclusion of Exploratory research
y

Tetra packing for the product Selected Fruit Juices over carbonated drinks Included Milk based Beverages for further research

y

y

Sampling Technique
This research has used convenience sampling technique. 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. SAMPLE SIZE: For the study, a sample size of 88 has been taken STATISTICAL TOOLS USED Questionnaire Pie Charts Bar Diagrams

Data Source
SOURCES OF DATA COLLECTION: Research will be based on two sources: 1) PRIMARY DATA: Questionnaire: Primary data was collected by preparing questionnaire and the people were requested to fill them

2) SECONDARY DATA: Secondary data consists of articles, internet and websites

Data Analysis
According to the Data Analysis of people belonging to the different age groups, gender, their beverage preferences, and consumption habits has been carried out

Age Group (in Years)
08-15 16-21 22-30 31-50 51+ 0 70 16 2 0

Beverage Preference
Fruit juices Aerated Soft drinks Tea/Coffee Fruit & Aerated Fruit & Tea/Coffee Aerated & Tea/Coffee All three 26 14 20 4 12 4 6

Weekly Consumption
<5 32

5 to 10

18

10 to 15

18

15+

20

Weekly Expense on Beverages
<50 50-100 100-200 200-300 300+ 8 20 30 6 24

Factors affecting purchase of Fruit Juices

Package size preference for a single oneonetime consumption for one individual

Aerated drinks causing Health Problems

Beverages Packaging Preferences

Calculation
H0: Proportion of juice opting people for health conscious reason is same as carbonated drink H1: No, the proportion if different
chi square test Carbonated drinks 45 15 60 3 25 28 48 40 88

juices health consciousness refreshing

Fo 45 3 15 25

Fe 24.54545 1.636364 6.818182 11.36364 X2

((Fo-Fe)^2)/Fe 17.04545455 1.136363636 9.818181818 16.36363636 44.36363636

Juices Health Consciousness Refreshing Total Aerated Drinks Health Consciousness Refreshing Total

45 15 60

3 25 28

at 0.01 level of significance we have accepted H1 as value of chi square is very high
NORMAL DISTRIBUTION TEST OF TWO SAMPLE TEST Health wt hi ³W´ Price 1 2 3 4 5 1 10 31 35 11 88 3 4 12 7 62 88 h bar (hihbar)^2 *W 1 20 93 140 55 309 3.511364 sig H sig of population level of significance = 0.1900 z= (Calc Value) 0.1868 1.322357 6.306947 22.8422 8.106276 8.356792 24.37642 69.98864 0.804467 pbar 0.896921 Price weight µP¶ 3 8 36 28 310 385 4.375 sig P (pipbar)^2* P 34.17188 22.5625 22.6875 0.984375 24.21875 104.625 1.202586 1.096625

weight h

0.022807

H0:mean of pricing is same as that of health consciousness H1:mean of pricing is greater than health consciousness Based on the level of significance of 19% he have accepted H1 as the value of Z is more than critical value of Z at 19%

Suggestions
‡Frequent consumption of aerated soft drinks will cause health problems. ‡From the survey almost half of the respondents suggested that they prefer use of tetra-packs as packaging ‡Advertisement acts as a very important role. So if heavy advertisements are carried out it will definitely increase purchase

Limitations of the Study
‡The study was confined to city of Mumbai only ‡Chances of some biasness could not be eliminated ‡Time was the major constrain. Only limited sample size (88) was possible for such a vast research in such a period of time ‡Interaction with the respondents was also limited due to their busy work ‡Due to the changing life style and preferences, it was not necessary that they will consume same soft drink every time ‡There was a chance that respondent will make assumptions while filling the questionnaire

‡An important finding that emerged out of the survey was that 16% of people like to have soft drinks while 84% prefer juices and other beverages ‡A majority of the respondents consume fruit juices to put off thirst or for refreshment ‡About half of the respondent felt taking too much of aerated soft drink would cause health problems ‡Most of the respondents like non carbonated Maaza since they like Mango flavor ‡Price is more important consideration than health consiousness

Conclusion

BIBLIOGRAPHY
‡http://en.wikipedia.org/wiki/Beverage ‡www.foodindustryindia.com ‡http://fnbnews.com/article/detarchive.asp?articleid=25105&sectionid=3 ‡http://fnbnews.com/article/detarchive.asp?articleid=24983&sectionid=3 ‡http://fnbnews.com/article/detarchive.asp?articleid=24965&sectionid=3 ‡http://fnbnews.com/article/detarchive.asp?articleid=24849&sectionid=3 ‡http://fnbnews.com/article/detarchive.asp?articleid=25039&sectionid=3 ‡http://www.foodindustryindia.com/newfood/detailnews.jsp?n=Xtazy,%20another ‡%20energy%20drink%20for%20the%20Indian%20market&id=598 ‡http://fnbnews.com/redfr.asp?fn=/other/aboutus.asp&title=About%20Us#Food& b ‡www.google.com ‡Zickmund, William G., Business Research Methods , Cengage Learning

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.