chapter – iv consumer behaviour and marketing strategies...

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Chapter – IV

Consumer Behaviour And Marketing

Strategies of Soft Drinks

Introduction

Consumer behavior is defined as the behavior that consumer

display in searching for purchasing using. Evaluating and disposing of

product and services that they expect will satisfy their needs. Consumer

behavior focuses on how individuals make decisions to spend their

available resources (time, effort, money) on consumption related items.

This includes what they buy. Why they buy it, when they buy it, where

they buy it, how often they buy it, how often they use it, how they value it

after the purchase and the impact of such evaluation on future and how

they dispose it. In another words, Consumer behavior can be define as the

behavior of individual in regards to acquiring, using and disposing of

products, services, ideas or experiences. Consumer behavior also includes

the acquisition and use of information. Thus, communication with

consumer and receiving feedback for them is a crucial part of consumer

behavior which is of great interest to marketers.

The soft-drink industry comprises companies that manufacture

nonalcoholic beverages and carbonated mineral waters or concentrates

and syrups for the manufacture of carbonated beverages. Soft drink

products have been well accepted by consumers and gradually overtaking

hot drinks as the biggest beverage sector in the world. In the midst of the

rapidly growing soft drink demand, the industry on the whole is

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encountering new opportunities and challenges. Changing consumer

demands and preferences require new ways of maintaining current

customers and attracting new ones. A mid ever increasing competition,

beverage companies must intensely court customers, offer high quality

products, efficiently distribute them, ensure safety and keep prices low all

while staying nimble enough to exploit new markets by launching new

products. Recent developments in soft drink consumption and challenges

in marketing have heightened the need for searching the consumer’s

needs and preferences.

It is becoming increasingly difficult to ignore the existence of soft

drink in today’s market. Since the inception of soft drink in the 1830’s, its

consumption steadily increased with technological advances in

production and increased product availability. Recent statistics suggests

that despite India’s huge population and the fact that around 47% of the

population is composed of persons below 30 years of age, the per-capita

consumption of soft drinks in India remains very low at approximately at

5.2 liters which indicates huge potential for market of soft drinks in India.

Consumer Buying Preferences

Consumer preferences is used primarily to mean to select an option

that has the greatest anticipated value among a number of options by the

consumer in order to satisfy his needs or desires, Preferences indicate

choices among natural or more valued options available. The preferences

of the consumer are the result of their behavior they show during

searching, buying and disposing the products.

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Consumer preferences are defined as the subjective (individual)

tastes, as measured by utility, of various bundles of goods. They permit

the consumer to rank these bundles of goods according to the levels of

utility they give the consumer. The preferences are independent of

income and prices. Ability to purchase goods does not determine a

consumer’s likes or dislikes. In other words, the consumer has different

preferences over the different combinations of goods defined by the set of

commodity bundles.

Consumer preferences are measured in terms of the level of

satisfaction the consumer obtains from consuming various combination of

goods. The consumer’s objective is to choose the goods which provide

the greatest level of satisfaction as the consumer define it. But constraints

are defined by the consumer’s income, and the prices the consumer pays

for the goods. Consumer value is measured in terms of the relative

utilities between goods and these reflect the consumer’s preferences.1

Brand Preference

Brand Preferences represent a fundamental step in understanding

consumer choices. A deeper understanding of such preference dynamics

can help marketing managers ‘better design marketing program and build

a long term relationship with consumers.’ Despite the existence of some

studies investigating how brand preferences is built and changed. Most of

them focus ion examining factors from consumer behavior perspective or

advertising perspective.

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Customer satisfaction

Customer is always aiming to get maximum satisfaction from the

products or services that they buy. Winning in today’s market place

entails the need to build customer relationship and not just building the

products; building customer relationship means delivering superior value

over competitors to the target customer. Whether an organization

provides quality services or not will depend on the customer’s feedback

on the satisfaction they get from consuming the products. Since higher

levels of quality lead to higher levels of customer satisfaction.

Soft drinks

Soft drinks can be classified into major heads namely carbonated

and non-carbonated drinks on the basis of their composition. A soft drink

carbonated beverage is a non-alcoholic beverage that typically contains

water a sweetness, and a flavor of agent. The sweetness may be sugar,

high-fructose corn syrup or a sugar substitute (in the case of diet drinks)

for e.g. :- coca-cola, thumps Up, Mountain Dew, Sprite, 7Up, Mirinda,

Fanta, Limca. Whereas non-carbonated drinks can be further classified

into nectar and juices. Nectar is made from fruit or vegetables but with

25-99% juice content and usually with added sugar juice mostly contains

natural fruit or vegetables. It is prepared by mechanically squeezing or

macerating fresh fruits or vegetables. Juice is always 100% fruit juice for

example, saint juices, Real fruit and vegetables juices, Tropicana Juices

etc. to name a few.

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The term “customer” it typically used to refer to someone who

regularly purchases from a particular store or company. Thus, a person

who shops we use shopping Mail or who uses Taxco gasoline is viewed

as a customer of these firms. The term “customer” more generally refers

to anyone engaging in any of the activities used in our definition of

customer behavior. Therefore, a customer is defined in terms of a specific

firm while a consumer is not. The traditional view point has been to

define consumers strictly in terms of economic goods and services. This

position holds to define consumer are potential purchasers of products

and services offered for sale. 2

Marketing strategies of Soft Drinks

Marketing strategy is conceptually very simple. It begins with

analysis of the target market which includes company, condition,

competitors and consumers. Next, market segmentation: This involves

identifying product-related need sets, grouping customers with similar

sets. Describing each group and selecting an attractive segment to serve.

The marketing mix includes the product, price, communication,

distribution, and services provided to the target market. The final stage

outcomes involve analysis of firm’s production position and customer

satisfaction resulting from implementation of the strategy. 3

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Table No. 4.1

Consumer Behavior and Marketing Strategies of Pepsi Soft drinks

Sr.

No.

Products Quantity Colour Flavour

1. Pepsi 300 ml. 200ml. Brunt sugar Cola

2. Mirinda 300 ml. 200ml. Sun-set Orange

3. Mirinda 300 ml. 200ml. Tetrazine Lime

4. Mirinda 300 ml. 200ml. Tetrazine Mango

5. 7UP 300 ml. 200ml. Colorless Lemon

6. Mountain Dew 300 ml. 200ml. Colorless Lemon

7. Slice 300 ml. Sunset Mango

8. Lehar Soda 300 ml. Tetrazine Lemon

9. Pet 1.5 lt. Brunl sugar Cola

10. Pet 2 lt. Brunl sugar Cola

11. Can 330 ml. Brunl sugar Cola

12. Aquafina

(Mineral Water)

1 lt. Colorless White

Source:- PepsiCo Annual Report (2013-14)

According to the Table No. 4.1 it is clear that, the Importance of

Consumer behavior towards their preference to choice consumers are

preferred to Quantity, Colour, Flavour of soft drinks product.

Advertisement Effectiveness:

Advertising effectiveness pertains to how well a company’s

advertising accomplishes the intended. Small companies use many

different statistics or metrics to measure their advertising effectiveness.

These measurements can be used for all types of advertising, including

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television, radio, direct mail, Internet and even billboard advertising. A

company’s advertising effectiveness usually increases over time with

many message or exposures. But certain advertising objectives can be

realized almost immediately.

Table No. 4.2

Advertisement Impact and Buying Behavior

Sr. No. Advertisement No. of Respondents Percentage

1. TV 585 58.5

2. Hoardings 65 6.5

3. Radio 35 3.5

4. Newspaper 90 9.0

5. Relatives / Friends 76 7.6

6. Others 154 15.4

Total 1000 100

Source:- Field Survey (2013-14)

From the Table No. 4.2 it is clear that , 58.5% respondents had

TV advertisement more effective for buying the soft drinks, Secondly,

15% respondents views other mix advertisement , and Third position

were, 9% respondents preferred to Newspaper advertisement ,

Followed by 8% respondents said that relatives / friends are effectives

for buying motives of soft drink , then 6.5% respondents view

Hoardings advt. impact and lastly 3.5% respondents view radio

advertising Impact was effective.

Finally, it is clear that 585 respondents preferred TV advertisement

Impact was effective for motivation of consumer to purchase the soft

drinks.

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Brand awareness:

Brand awareness is a extent to which a brand is recognized by

potential customers, and is correctly associated with a particular products.

Expressed usually as a percentage of target market. Brand awareness is

the primary goal of advertising in the early months of years of a product’s

introduction.

Celebrity endorsement:

Celebrities are people who enjoy public recognition by a large

share of a certain group of people. Whereas attributes like attractiveness,

extraordinary lifestyle or special skills are just examples and specific

common characteristics cannot be observed. It can be said that within a

corresponding social group celebrities generally differ from the social

norm and enjoy a high degree of public awareness. Last but not least,

celebrities act as spokes people in advertising to promote products and

services. 4

Table No. 4.3

Consumer Buying Behavior of Soft drinks

Sr. No. Soft drink Respondents Percentage 1. Coca-Cola 254 25.4 2. Pepsi 252 25.5 3. Thums Up 312 31.2 4. Funta 25 2.5 5. Maaza 37 3.7 6. Slice 34 3.4 7. Mirinda 28 2.8 8. 7 UP 25 2.5 9. Sprite 19 1.9 10. Mountain Dew 14 1.4 Total 1000 100

Source:- Field survey 2013-14

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From the above Table 4.3 it is clear that, 31% Respondents bought

Thums up, it is the highest preference of consumer behavior of soft drink.

Secondly the 25% Respondents Preferred Coca-Cola soft drink, Thirdly

25% respondents preferred to Pepsi and 3.7% respondents consumer

behavior preference was to Maaza, and 3.4% respondents behavior

preferred to Slice, 2.8% consumer gave preference to Mirinda, 2.5%

respondents liked to Fanta and 7UP (2.5%), 1.9% respondents liked

sprite, and lastly 1.4% respondents interested in Mountain Dew.

After the Analysis of data, it is found that the highest consumer

Preference is to Thumps UP 31.2% and followed by Coca-cola 25.4%

and Pepsi is 25.2%.

Table No. 4.4

Preference to Consumer Behavior of the Soft drinks

Sr. No. Soft drink Preference Percentage

1. Taste 258 25.8

2. Color 162 16.2

3. Price 198 19.8

4. Packaging 104 10.4

5. Sweetness 112 11.2

6. Flavor 107 10.7

7. Calories 22 2.2

8. Need 05 0.5

9. Fashion 10 1.0

10. Thirst 22 2.2

Total 1000 100

Source:- Field survey 2013-14

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Table NO. 4.4 Indicating that , Preference to consumer behavior of

soft drinks is 25.8% The said respondents preferred to Taste , it is the

highest preference given by the consumers to the Taste. Secondly 19.8%

respondents Prefer to Price, and 16% respondents given Preference to

color, Fourthly11.2% respondents preferred to Sweetness of soft

drinks , where as 10.4% respondents preferred to Packaging ,

followed by 2.2% respondents preferred Calories and 1% respondents

preferred to Fashion , and lastly 0. 5 % respondents gave preference to

Needy.

25.8% Preference is given by the consumers to Taste 25.8%,

followed by 19.8% to price 19.8S and Colour 16.2%.

Soft Drink Industry In India

The 50-billion rupee soft drink is growing now at 6 to 71/2

annually, In India. Coke and Pepsi have a combined market share of

around 95% directly or through franchisees. Campa Cola has a 1% share.

and the rest is divided among local players. Industry watchers say, fake

products also account for a good share of the balance. There are about

110 soft drink producing units (60% being owned by Indian bottlers) in

the country, employing about 125,000 people. There are two distinct

segments of the market, cola and non-cola drinks. The cola segment

claims a share of 62%, while the non-cola segment includes soda, clear

lime, cloudy lime and drinks with orange and mango flavors.

The per capita consumption of soft drinks in India is around 5 to 6

bottles (same as Nepal’s) compared to Pakistan’s 17 bottles, Sri Lanka’s

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21, Thailand’s 73, The Philippines 173 and Mexico 605. The industry

contributes over Rs 12 billion to the exchequer and exports goods worth

Rs 2 bn. It also supports growth of industries like glass, refrigeration,

transportation, paper and sugar. The Department of food processing

Industries had stipulated that ‘contains-no-fruit-juice’ labels be pasted on

returnable glass bottles. About 85% of the soft drinks are currently sold in

returnable bottles. There was a floating stock of about 1000 million

bottles valued at Rs 6 bn. If the industry were to abide by the new

guidelines, it would have to invest in new bottles, resulting in a cost

outgo of Rs 5 bn. Neither Coke nor Pepsi is in a position to invest such a

large amount.

Around 400,000 tons of raw materials would be required to replace

the existing stock of bottles. Instead, the soft drink industry suggested

that a seven-year moratorium be extended to the industry so that it can

incorporate the change in a phased manner. There is no such mandatory

requirement anywhere In the world to specifically label the glass surface

of returnable bottles. The government has decided to extend the date for

replacing the bottles to end-march 2006. In the meantime, the products

have shifted substantially to the use of PET bottles.

Soft and aerated drinks were considered products for the middle

class and the affluent. That segregation is no more valid. Soft and aerated

drinks are consumed by all except those who cannot afford to buy any

drink. An NCAER study says that 91% soft drink sales are made to the

lower, middle and upper middle classes. The soft drink industry has been

urging the government to categories aerated waters.5

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Market of Soft Drinks in India

Today India is one of the most potential markets. With population

of around 900 million people, The Indian soft drinks market was only of

200 cases per year. This was very low even compared to Pakistan and

Philippines. Population and potential market are two major reasons for

major multinational companies of entering India. They feel that a huge

population coupled with low consumption can only lead to an increase in

the soft drinks in the scorching heat and the climate of India, Which is

suitable for high sale of soft drinks. All these factors together have

contributed to a 30% growth in the soft drinks industry. If the demand

continues growing at the same rate within two years the volume could

touch 1 billion cases. All these factors are the reasons for the entry two

giant of the soft drink industry of the world to enter the Indian market.

They share 96% of the soft drink market share. Rest is shared by

Cadbury’s Schweppes, Campa Cola and other soft drink brands. But was

the scene same 20 years ago? The answer is No. 1970 was the year of

pure soft drinks Campa Cola and Parle People (Thumps Up and Limca)6

Table No. 4.5

Market share of Coca-Cola and Other Soft drinks

Sr. No. Brand Market Share

1. Coca-Cola 25.9

2. PepsiCo Inc. 11.5

3. Nestle 3

4. Others 59.6

100

Source – Annual Report of Coca-Cola (2011)

According to the Table No. 4.5, Market share of Coca

25.9%, followed by the PepsiCo Inc. Market Share was 11.5%, and the

Nestle Company Market share was 3%, Market share of other companies

were 59.6%.

From the Table No. 4.5, it is clear that the Total Highest Market

Share of Coca-Cola was 25.9%, and othe

Mixed share of 59.6%.

Market Share of Coca

Soft drink companies, Based on Sales Value, 2011

The Statistic shows the global market share of the coca

company and other soft drink companies in 2011 ba

2011, the Coca-Cola company held a global market share of 25.9 percent.

The Coca-Cola company is a producer, retailer and marketer of no

alcoholic beverages and is well known for the soft drink Coca

0

10

20

30

40

50

60

Coca-Cola

25.9

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According to the Table No. 4.5, Market share of Coca




Cola was 25.9%, and others Soft drink companies were

Mixed share of 59.6%.

Market Share of Coca-Cola Company and Other


The Statistic shows the global market share of the coca

company and other soft drink companies in 2011 based on sales value, in

Cola company held a global market share of 25.9 percent.

Cola company is a producer, retailer and marketer of no

alcoholic beverages and is well known for the soft drink Coca

PepsiCo Inc. Nestle Others

11.53

59.6

Market Share

Market Share

According to the Table No. 4.5, Market share of Coca-Cola was




rs Soft drink companies were

Cola Company and Other


The Statistic shows the global market share of the coca-cola

sed on sales value, in

Cola company held a global market share of 25.9 percent.

Cola company is a producer, retailer and marketer of no-

alcoholic beverages and is well known for the soft drink Coca-Cola. The

Market Share

162

company was founded in 1892 and is currently headquartered in Atlanta,

Georgia in the United Stated.

Comparison of Soft drinks

Soft drinks belong to the non-alcoholic beverage industry.

Depending on the region, they are also known as soda, or carbonated

beverages, and cover drinks containing water, sugar or a type of artificial

sweetener, and a flavoring agent. These fizzy drinks are mostly available

in regular and diet varieties.

Multinational companies competing in the soft drink market are

comprised of The Coca-Cola Company, PepsiCo Inc. and Dr. Pepper

Snapple, to name a few. In the beverage segment the coca-cola company

and PepsiCo have been better revels for ages. PepsiCo always has to face

the so called ‘Pepsi challenge’ as competing with coca-cola. The ‘Pepsi

Challenge’ originally took place as a taste test. Consumers were invited to

try beverages out of two blank cups-one containing Pepsi Cola and one

containing Coca-Cola. Consumers were then asked to evaluate the taste

of these two beverages and to decide which one they would prefer. The

blind tests let most Americans surprisingly learn that they would prefer

Pepsi Cola over Coca-Cola, based on exclusive taste.

PepsiCo, Inc. is based in Purchase, NY, United States and was

founded in 1965. Their beverage product portfolio comprises soft drinks.

bottled water, fruit juices, iced tea and ready-to-drink coffee beverages.

Pepsi-Cola, Mountain Dew, and Aquafina are some of their best selling

global brands.7

Place of Purchase of Soft Drinks

Sr. No. Place of

1. Super Market

2. Malls

3. Retail Shop

4. Hotels

Total

Source:

Table No. 4.6 found that, 72% respondents purchased soft drink

from super market, it is highest buying place. Secondly 12.9%

respondents purchased from malls , followed by 8.5% from retail shops

and lastly with 6.5% respondents purchased soft drinks from hotels .

Finally, it is found that the highest soft drink purchasin

super market that i.e. (72.1%).

0

200

400

600

800

1000

1200

Super

Market

721

72.1

163

Table No. 4.6

Place of Purchase of Soft Drinks

Place of Buying Respondents Percentage

Super Market 721 72.1

Malls 129 12.9

Retail Shop 85 8.5

Hotels 65 6.5

Total 1000 100

Source: - Field Survey (2013-14)


market, it is highest buying place. Secondly 12.9%



Finally, it is found that the highest soft drink purchasin

super market that i.e. (72.1%).

Malls Retail

Shop

Hotels Total

129 85 65

1000

12.98.5 6.5

100

Percentage

Respondents

Percentage

72.1

12.9

8.5

6.5

100


market, it is highest buying place. Secondly 12.9%



Finally, it is found that the highest soft drink purchasing place is

Percentage

Respondents

Buying Preferences of Soft Drinks

Sr. No. Way of consuming1. Quality 2. Colour3. Packaging4. Taste Total

Source :

The above Table Indicates that , 47% respondents were interested

to buy soft drinks with the quality , 43% respondents preferred to buy

the soft drink because of taste, 7% respondents Preferred to packaging

and 3% respondents preferred to colour of soft drinks

Finally, the preference of soft drink is to quality, 47% preference

given by the customers to Quality of soft drink for buying.

Following table presents information with respect to purchase of

common Stock of the Company which is being made during the three

Months given below-

0

Quality

Colour

Packaging

Taste

Total

30

70

430

3

7

Quality

Respondents 470

Percentage 47

164

Table No. 4.7

Buying Preferences of Soft Drinks

Way of consuming Respondents PercentageQuality 470 47.00Colour 30 3.0

Packaging 70 7.0Taste 430 43.00Total 1000 100

Source :- Field Survey (2013-14)




respondents preferred to colour of soft drinks


given by the customers to Quality of soft drink for buying.


k of the Company which is being made during the three

500 1000 1500

470

430

1000

47

43

100

Quality ColourPackagin

gTaste Total

470 30 70 430 1000

3 7 43 100

Respondents

Percentage

Percentage 47.00 3.0 7.0

43.00 100






k of the Company which is being made during the three

Respondents

Percentage

165

Table No. 4.8

PepsiCo and Share Price

Sr.

No.

Period Total No. of

Share

purchased

Average

price

paid per

share

Total No. of

share

purchased as

part of

Publicly

Announced

plan

Maximum

Number of

shares that may

yet be

purchased

under the

publicly plan

1. 28 Sept.13 to

25 Oct.13

3,881,786 $38.54 3,88,0000 443,183,612

2. 26 Oct .13 to

22 Nov.13

9,837,987 39.93 9,795,500 433,388,112

3. 23Nov.13 to

31 Dec.13

11,628,797 40.14 11,609,306 421,778,806

Total 25,348,570 $39.81 25,284,806

Source- Annual report of PepsiCo (2012)

PepsiCo purchased of common stock for the company average

price of the per shares and total No. of share purchased by publicly as per

the plan and yet to be purchased under the plan, this information with

figure given by the company.

According to the Table No. 4.8 , PepsiCo share was 3,881,786

($38.54) per share, for the period of 28 September 2013 to 25 October

.2013 , then 9,837,987 share purchased ($39.93) per shares, for the

period of 26 October 2013 to 22 November 2013 , lastly 11,628,797

shares purchased by PepsiCo ($40.14) per share for the period of

23November 2013 to 20 31 December 2013.

166

Table No. 4.9

Stock Keeping Unit (SKU) availabilities carbonated soft drink (CSD) on

the basis of flavor PepsiCo Products

Flavor Brands Total SKU No. of

Packs

% of

availabilities

Cola Pepsi 145 6 24.16%

Clear Lime 7UP. Mt.

dew

234 12 19.50%

Orange Mirinda 46 6 7.66%

Coca-Cola Products

Flavor Brands Total SKU No. of

Packs

% of

availabilities

Cola Coca-Cola

Thums - UP

237 12 19.75%

Clear Lime Sprite 1820 6 30.33%

Cloudy

Lime

Limca 35 6 5.83%

Orange Fanta 56 6 9.33%

Source:- Soft drinks Annual Report (2011-12)

As per the difference stock keeping unit (SKU) and availabilities

carbonated soft drink (CSD) Coca-Cola company stock availability is

more than PepsiCo. From the survey it is found that, stock keeping unit in

cola flavor of Coca-Cola product was more than PepsiCo product. But

Coca-Cola has two type of product in cola flavor which was coca-cola

and Thums-UP where as PepsiCo has only one product Pepsi.

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Total SKU

Percentage of availabilities = ------------------------- 100

No. of Packs

Opportunities mean every outlet has at least one unit product of

each packs.

Percentage of opportunities = 100 – percentage of availabilities.

According to the above Table it is found that , cola flavor of

PepsiCo SKU was 145 and availabilities is 24.16% then 7up Mt. dew

234 SKU for that availabilities 19.50%. and Orange Mirinda SKU was

7.66%.

Whereas Coca-Cola and Thums up Cola Flavor SKU 237 Unit for

availabilities 19.75%. Cola flavor of PepsiCo and Sprite SKU was 1820

and Availabilities 30.33% Limca SKU 35 and CSD availability is 5.83%

and Fanta Orange Flavor SKU was 56 and availabilities 9.33%

opportunities 75.84%.

Table No. 4.10

Mineral Water Purchase and their Motto

Sr. No. Purpose No. of Respondents

Percentage

1. For Good Health

300 30.0

2. Safe Drinking 480 48.0 3. General water

is not hygienic water

70 7.0

4. Other 150 15.0 Total 1000 100

Source :- Field survey ( 2013 – 2014)

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From the above table it is found that, there were 480 respondents

who bought Mineral drinking water for the purpose of safe drinking

(48%) , Followed by 300 respondents bought mineral water for the

purpose of good health (30%), 150 respondents purchase mineral

drinking water for other purpose(15%). And 70 respondents bought

mineral water for the drinking purpose that General water is not hygienic

water (7%).

Finally it is found that, Maximum respondents bought mineral

drinking water for the purpose of safe drinking. Some were bought

mineral drinking water for the purpose of Good Health.

Table No. 4.11

Use of Soft Drinks

Sr. No.

Opinion No. of Respondents

Percentage

1. Family Use 773 77.3 2. Personal Use 117 11.7 3. Guest 50 5.0 4. Parties &Others 60 6.0 Total 1000 100

Source:- Field Survey (2013-2014)

300480

70 150

1000

30

48

715

100

0

200

400

600

800

1000

1200

For Good

Health

Safe

Drinking

General

water is

not

hygienic

water

Other Total

Percentage

No. of Respondents

According to Table No.4.11 , 77% respondents

for Family use , followed by 11.7% respondents used soft drinks for

Personal Use , 6% respondents used soft drinks for parties & others,

and 5% respondents used soft drink for the purpose of Guest ..

Finally, 77.3% respondents

the highest more than Personal use of soft drinks (11.7%.).

Consumer Preference of Coca

Sr. No.

1. Coca

2. Thums Up

3.

4.

Source :

Family Use

Personal Use

Guest

Parties &Others

Total

12

34

169

According to Table No.4.11 , 77% respondents used soft drinks




Finally, 77.3% respondents used soft drinks for family use that is

the highest more than Personal use of soft drinks (11.7%.).

Table No. 4.12

Consumer Preference of Coca-Cola soft drinks

Brands Respondents Percentage

Coca-Cola 371 37.1

Thums Up 113 11.3

7up 188 18.8

Pepsi 328 32.8

Total 1000 100

Source :- Field Survey (2013 – 2014)

0 200 400 600 800 1000

Family Use

Personal Use

Guest

Parties &Others

Total

773

117

50

60

1000

77.3

11.7

5

6

100

Percentage

No. of Respondents

used soft drinks




used soft drinks for family use that is

Percentage

37.1

11.3

18.8

32.8

100

No. of Respondents

170

According to Table No. 4.12, it is clear that, 37.1% respondents

Preferred Coca-Cola soft drink. Followed by 11.3% respondents gave

preference to Pepsi, Thirdly 18.8% respondents gave preference to 7up,

and lastly 11.3% respondents preferred to Thums UP.

Finally, 37.1% of the respondents preferred to Coca-Cola and

32.8% respondents preferred to Pepsi soft drink.

Table No. 4.13

List of Brands and Attributes

Sr. No. Brands Attributes 1. Pepsi Cola Color 2. Coca-Cola Taste 3. Tab Carbonation 4. Fresca Price 5. 7 – Up Calories 6. Dr. Pepper Sweetness 7. Hires root beer Thirst Quenching 8. Hi- C, grape Linking of flavor 9. Hawaiian Punch After – taste 10. Orange Crush Packaging

Source: - Annual Report (2013-14)

371

113

188

328

37.1

11.3

18.8

32.8

0 100 200 300 400 500

Coca-Cola

Thums Up

7up

Pepsi

Respondents

Percentage

171

Table No. 4.13 explaining the attributes of various brands, like as

Pepsi-Cola for Color, Coca-Cola for taste, Tab for carbonation and

fresco for price, some like 7up for calories , Dr. Pepper for sweetness,

Hires root beer for Thirst Quenching, The next brand Hi-C, grape for

Linking of flavor, Hawaiian Punch for After – Taste and lastly Orange

crush for Packaging.

Table No. 4.14

Preferences to drink mineral drinking water.

Sr. No. Prefer to mineral water

Respondents Percentage

1. Bottle 418 41.8 2. Pouch 582 58.2 Total 1000 100

Source: - Field survey (2013-2014)

According to the Table No. 4.14, 58.2% respondents preferred to

drink mineral water in cold pouch, followed by 41.8% to bottled mineral

water.

418582

1000

41.8 58.2 1000

200

400

600

800

1000

1200

Bottle Pouch Total

1 2

Respondents

Percentage

Finally, 58% of the respondents were the highest numbers who

gave preference to Pouch mineral drinking water.

Which kind of soft drink consumers prefer to drinks?

Sr. No.

1. 2. 3.

Source:

Table No. 4.15 found that , 53.8% respondents liked to prefer

Cola based soft drinks , followed by 32.2% respondents

based soft drinks , where as 14% respondents Preferred milk based soft

drinks .

Above analysis shares that 53.8% Respondents Prefer Cola based

soft drinks were as 32% preferred Juice based soft drinks

86%

88%

90%

92%

94%

96%

98%

100%

Juic

e-b

ase

d

1

322

32.2

172


gave preference to Pouch mineral drinking water.

Table No. 4.15


Base Customer’s Preference

Percentage

Juice-based 322 32.2 Cola-based 538 53.8 Milk-Based 140 14.0 Total 1000 100



Cola based soft drinks , followed by 32.2% respondents preferred Juice



soft drinks were as 32% preferred Juice based soft drinks

Co

la-b

ase

d

Milk

-Ba

sed

To

tal

23

538 1401000

53.8 14 100

Percentage

Customer’s Preference



Percentage


preferred Juice



Customer’s Preference

Frequently of

Sr.

No.

How Frequently

Taking Drink

1. Once a day

2. Twice a day

3. More than Twice

4. Not regular

drunker

Total

Source:

From the Table No. 4.16 it is clear that, 64.4% respondents were

not regular drunker , Followed by, 30.5% respondents drunk soft drink

Once a day , 3.5% respondents drink a soft drink Twice a day and

2.6% respondents more than twice .

Finally, 64.4% respondents were the highest consumer and Not

regular drunker, it is more than 30.5% those are drunk a soft drinks once

a day.

0

200

400

600

800

1000

1200

Once a

day

1

305

30.5

173

Table NO. 4.16

Frequently of Soft Drinks Purchase

How Frequently

Taking Drink

Respondents Percentage

Once a day 305 30.5

Twice a day 35 3.5

More than Twice 26 2.6

Not regular

drunker

644 64.4

Total 1000 100


the Table No. 4.16 it is clear that, 64.4% respondents were



2.6% respondents more than twice .

4% respondents were the highest consumer and Not


Twice a

day

More

than

Twice

Not

regular

drunker

Total

2 3 4

35 26

644

1000

3.5 2.6

64.4

100

Percentage

Respondents

Percentage

the Table No. 4.16 it is clear that, 64.4% respondents were



4% respondents were the highest consumer and Not


Percentage

Respondents

Age wise consumption of soft drinks

Sr. No.

Age of the respondents in year

1. 02 - 2. 06 – 3. 12- 194. 20-395. 40 - 596. 60 - above Total

Source: -

According to Table No. 4.17, Age wise consumption of

drinks, Male 20-39 age group was 28.3% , followed by 40

group was 25.8%, then 12

18.4%, then 60 years and above age group was 15.7%, and 6

group drinking soft drink was 9.2%, and las

was 2.6%.

The consumption of soft drink in female like as a young group of

12-19 was 29.7%. followed by 20

020406080

100120140160180200

02

-Ma

y

06

–1

1

1 2

2.6 9.215.3

174

Table NO. 4.17

Age wise consumption of soft drinks

Age of the respondents in year

Percentage Male

PercentageFemale

05 2.6 1.00 11 9.2 5.3 19 18.4 29.7 39 28.3 25.5 59 25.8 23.3 above 15.7 15.2

Total 100 100 - National Health Survey (2009 – 2010)

According to Table No. 4.17, Age wise consumption of

39 age group was 28.3% , followed by 40

group was 25.8%, then 12-19 age group consumption of soft drinks was

18.4%, then 60 years and above age group was 15.7%, and 6

group drinking soft drink was 9.2%, and lastly 2-5 age group of children


19 was 29.7%. followed by 20-39 age group , 25.5%, and 40

De

c-1

9

20

-39

40

-5

9

60

-a

bo

ve

To

tal

3 4 5 6

9.2 18.4 28.3 25.8 15.7

100

5.3

29.7 25.5 23.315.2

100

Percentage Female

Percentage Male

Percentage

According to Table No. 4.17, Age wise consumption of soft

39 age group was 28.3% , followed by 40-59 age

19 age group consumption of soft drinks was

18.4%, then 60 years and above age group was 15.7%, and 6-11 age

5 age group of children


39 age group , 25.5%, and 40-59 age

Percentage Female

Percentage Male

group was 23.3%, 60 and above age groups was 15.2%, and 6

was 5.3%, lastly 2-5 age groups girls were (1%).

Finally, according to above analysis of age wise consumption of

soft drinks highest consumption Male 20

12-19 group (25.5%).

Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Source:

0%10%20%30%40%50%60%70%80%90%

100%

Co

ca-C

ola

Pe

psi

1 2

26 15

175

group was 23.3%, 60 and above age groups was 15.2%, and 6

5 age groups girls were (1%).


soft drinks highest consumption Male 20-39 group (28.3%) and Female

19 group (25.5%).

Table No.4.18

Market Share of Soft Drinks

Brands Market Share % Coca-Cola 26 Pepsi 15 Thums up 15 Mountain Dew 10 Dr. Pepper 9 Diet Pepsi 8 Sprite 8 Fanta 3 Mirinda 3 Slice 3 Total 100

Source: - Annual Report (2013-14)

Pe

psi

Th

um

s u

p

Mo

un

tain

De

w

Dr.

Pe

pp

er

Die

t P

ep

si

Sp

rite

Fa

nta

Mir

ind

a

Slice

To

tal

2 3 4 5 6 7 8 9 10

15 15 10 9 8 8 3 3 3 100

Market Share %

Market Share %

group was 23.3%, 60 and above age groups was 15.2%, and 6-11 age


39 group (28.3%) and Female

Market Share %

176

Table No. 4.18 found that, Coca-Cola Soft drinks brand Market

Share is 26%, followed by Pepsi Market share 15%, Thums up 15%,

then Mountain dew share of market 10%, and then Dr. Pepper market

share 9%, Diet Pepsi 8%, Sprite market share 8%, and finally Fanta,

Mirinda ,and Slice market share is 3% respectively .

Finally, it is clear that Coca –Cola Market share is 26%, Pepsi and

Thums up market share is 15% respectively.

Coca-Cola and PepsiCo double-digit growth in July-September

After six quarters of back-to-back single digit volume growth, top

soft drinks makers coca-cola and PepsiCo have returned to double-digit

volume growth in the March, April, May and July-September quarter,

riding mainly on continued warm weather conditions in several parts of

India.

Industry officials however, remain cautious in their outlook for the

next couple of quarters, with the impact of the 5% excise duty increase on

new bottles announced in the Union budget kicking in from mid-

September.

The third quarter was supported primarily by an extended summer

and lesser rains. But we are not yet seeing it as a long term revival of the

industry. The exercise duty impact on new kicked in, and besides, the

truth quarter is lean season, “a top bottling partner of one of the cola

firms.

177

Summer months have a huge direct influence on industry sales,

contributing more than half of annual volumes. “Among key markets,

India delivered volume and value share gains with double-digit volume

growth, “Coca-Cola chairman and CEO Muhtar Kent said in an earnings

call late last week. “ Although weather was a benefit in India, it

negatively impacted the company’s performance. While Coca-Cola

declined to comment on the exact volume growth for India in the third

quarter, officials directly aware of the numbers say the maker of Thumps

Up and Sprite fizzy drinks has posted volume growth in the range of

13%-15% in the quarter.8

PepsiCo, which makes Pepsi cola, Tropicana juices and Kurkure

salty snacks, has also posted volume growth in the range of 15%, a top

official in direct knowledge of the development said. PepsiCo chairman

and CEO Indra Nooyi said in a third quarter earrings call that India along

with Egypt posted double-digit growth. “In developed markets, consumer

category demand continues to be sluggish.

In other key emerging markets, China, India and Brazil, even

though the political environments are relatively stable, GDP and

consumer spending growth remains mixed, “she had said.

Both firms have been investing ahead of the curve on higher

infrastructure and low prices, as their headquarters believe India is a key

growth bastion in a global environment which continues to see sluggish

sales across developed markets. Similar to most consumer goods firms,

the two beverages makers saw growth slowing down to single digits over

the past five-six quarters, due to overall slowdown in discretionary

spends as well as erratic weather conditions.8

178

Both Coca-Cola and PepsiCo have hiked prices of large packs 5%-

7% to offset the additional excise duty hike of 5% on aerated sugary

drinks. While prices of glass bottles and entry level packs of 200 ml and

300 ml have not been changed as the companies believe higher prices

could have a huge negative impact on sales, prices of fresh stocks of big

1.5 and 2 liter bottles have gone up starting test month.

“The actual impact of higher price could reflect in the next two

quarters,” said a beverage industry veteran, requesting not to be named.

Coca-Cola’s Kent had, in last week’s earnings call, said, “While we have

begun to see early signs of progress, we recognize that we need to

increase the scope and pace of change as we continues to face a

challenging macroeconomic environment,” globally, Coca-Cola reported

earnings below street expectations for the third quarter, with flat revenues

and global volumes growing 1%.8

Competitors of Coca-Cola In India

The Coca-Cola India is the country’s leading soft drink

manufacturer. But the company gets a tough competition through the

other global leaders as well as domestic companies. The leading

competitors of Coca-Cola in the country are PepsiCo. But beside PepsiCo

the other competitor of Coca-Cola in the country is PepsiCo Parle & Dr.

pepper Snappie Group which is establishing in India. Coca-Cola’s

product Thumps Up (India) gets a tough competition with the Pepsi.

179

The competition for Coca-Cola from PepsiCo is not so tough in the

Indian market, as the Thums-UP is becoming the generic name for Cola

in India. The huge demand for thumps up in the Indian Market is giving a

tough Competition to the Pepsi. The advertisement of the Thumps Up is

liked by many of the youngsters and the claim of Thumps Up is a mild

soft drink which is not as strong as Thumps up. The Coca-Cola’s brand

product Coca-Cola is not so much liked in the country and has a limited

market. So the company has started focusing on the Thumps Up so that

the companies market is maintained in the country. But the company is

trying its best to popularize market is maintained in the country,. But the

company is trying its best to popularize the coca-cola within Indian

market.9

Soft drink strategy

Pepsi is quit aggressive in approach to Indian consumer. They are

desperately working in the strategy to be winner side in the hot cola war

between two big barons. According to Pepsi philosophy it’s the madness

that encourages executive to thin to conjure up those creative tactics to

knock the fizz out of their competition. They have been pumped a large

amount on visibility of its blue-red-and white logo. They have been going

with aggressive marketing by putting Sachin Tendulkar and now

Shahrukh Khan in there advertisement to endorsees their brand. The role

models for its targeted consumer the teenagers. They have increase the

fizz in the market price by introducing the dispensers called fountain

Pepsi and been enjoying a lead over its rival three. 10

180

Advertising

Advertising is non-promotion of goods and services, by a sponsor

(a firm or person) who can be identified and who had paid for this

communication. This purpose of advertisement is to sell something a

good service, idea person or place, either now or later this goal, reached

by setting specific objective that can be expressed individual ads. Those

are incorporated into an advertising campaign recall again from the

buying decision process that buyers go through a series of stages from

unawareness to target customer to the stage in the stage in the hierarchy

say from awareness to internet.

Advertisement plays an important role in the success of Pepsi

product. Advertisement is a key of implementing a strategy over year old

to trigger desire as offer and in as many ways as possible.

Media of Promotional Strategies of Soft Drinks

All advertisement expenditure is incurred by PepsiCo India. but

only D.P. board, wall painting S.G.A.’s etc. company spends on it around

8.9% total sales company invested 305 crore in advertisement budget.11

Radio

T.V.

Hoardings

Road signs

Sticker

Neon light.

181

Table No. 4.19

Slogans for soft drinks Promotion and Marketing Strategy

Sr. No.

Soft Drinks Marketing Slogans % of Popular in Market and Recall

1. • Yehi Hai Right Choice Baby, Aha

96%

2. • Yeh Dil Mange More!

97%

3. • Pepsi Ye Pyaas Hai Badi

90%

4. • Yeh Hai Youngistaan Meri Jaan

95%

5. • My Pepsi My Way

82%

6. • Change The Game

77%

7. • Oh Yes Abhi

89%

8. • My Can

66%

9. • Chotta Matlab Panch

96%

10 • Coke Utha Le Dhoom Macha Le

94%

Source: Soft Drinks Annual Report (2013-2014)

According to Table No. 4.19 Clearing that, Promotion of soft drink

advertising Slogans are more effective for divert to consumers and

specially youngster, youth to purchase of soft drinks. From the above

table shown that they capture above 90% market to divert to consumer.

Slogans are converting the customers mind for buying the soft

drinks product. It is hammering again and again through advertising for

effect of customers and increased the sale.

182

Table No. 4.20

Soft Drink Industries Spend Market share for Advertising Media

Sr. No. Media Percentage 1. TV 38 2 Print 5 3. Radio 12 4. Internet 25 5. Mobile 20 Total 100

Source: - Annual Report (2013)

Sr. No. Media Percentage 1. TV 45 2 Print 19 3. Radio 10 4. Internet 22 5. Mobile 4 Total 100

Source:- Annual Report (2014)

From the above (Table No. 4.20 ) it is found that , Indian soft drink

Industries spend their share in media advertising as per the Annual

reports of soft drink, TV Advertising in 2013, 38% and 2014, 45% ,

Followed by Internet media is very popular in advertising . Soft drink

Industries Invested advertising market share in 2013-2014 , 25% and

22%, then Mobile advertising is also very popular and soft drink

industries invested their market share in 2013,2014 20% and 4%, then

Radio advertising also very popular in rural area in 2013,2014 12% and

10%, and lastly Print media advertising in 2013, 2014 is 5% and 19%

respectively .

183

Finally it is found that, soft drink Industries in India spent 38% and

45% in 2013 and 2014 on advertising. it is highest share spent on

advertising media after that Internet Media 25% and 22% respectively.

Table No. 4.21

Monthly Trend of Soft Drink Product Advertising during Jan – Dec. 2013

Sr. No. Month Percentage 1. January 6 2 February 13 3. March 18 4. April 20 5. May 13 6. June 5 7. July 4 8. August 5 9. September 6 10. October 3 11. November 3 12. December 3 Total 100

Source: - Adex India, a division of TMA Media research (2013)

Table No. 4.21, shows that monthly trend of advertising of 2013. In

the month of February, March April and May the Advertising increased

by 13%, 18%, 20%, and 13% respectively. Then in the month of January,

June, July, August & September. it increased normal 6%, 5%, 4%, 5%

and 6% respectively in the month of October ., November, December,

The Trend of advertising is very low, it means it was the slack season of

soft drink company.

Finally, February, March, April, May month are pick period of soft

drink advertising and the trend also increased.

184

Table No. 4.22

Most Attractive Factors in Advertisement

Sr. No. Factors Respondents Percentage

1. Picture 412 41.2

2 Symbol 250 25.0

3. Message 124 12.4

4. Slogan 214 21.4

Total 1000 100

Source: Field Survey (2013-14)

From the above Table (No. 4.22) it is found that, 412 respondents

preferred to most attractive factor in advertisement is picture (41.2%),

secondly 250 respondents preferred for symbol which is most attractive

factor (25%), followed by 214 respondents most attractive factor is

Slogan (21.4%), and 12.4% respondents were attracted through

Messages .

Finally, it is clear that 41.2% respondents preferred by most

attractive factor which is picture advertisement. It is the highest factor to

attract the consumer.

There is no doubt that the newspapers are the best and popular

medium for advertising. It reaches everywhere of the country. It is the

most powerful selling force. In India, there are many languages

Newspapers are being published in 91 languages. Different types of

newspapers are existing. They are National Dailies, Regional Dailies

Evening Dailies, and National Weeklies etc.

185

Table No. 4.23

Newspaper Advertisement

Sr. No. Particular Respondents Percentage 1. Never 435 43.5 2 Occasionally 440 44.0 3. Very often 115 11.5 4. Always 10 1.0 Total 1000


According to the Table No. 4.23 it is clear that, 43.5%

respondents Never read the Newspaper advertisement, 44%

respondents Occasionally read the newspapers advertisement, followed

by 11.5% respondents very often read the newspaper advertisement ,

and lastly 10 respondents are Always read the Newspaper advertisement.

Table No. 4.24

Television Advertisement

Sr. No.

Particular Respondents Percentage

1. Never 120 12.0 2 Occasionally 165 16.5 3. Very often 194 19.4 4. Always 521 52.1 Total 1000 100


According to Table No. 4.24 it is found that, 52% respondents

were Always watch the Television advertisement , Followed by 19%

respondents were Very Often watching the Television advertisement ,

16.5% respondents Occasionally watches the TV advertisement , and

12% respondents were Never watching the TV advertisement .

186

Finally, 52% respondent were highest watched Television

Advertisement.

Table No. 4.25

Internet Advertisement

Sr. No. Internet Respondents Percentage 1. Never 372 37.2 2 Occasionally 323 32.3 3. Very often 231 23.1 4. Always 74 7.4 Total 1000 100

Source: Field Survey (2013-14

Table No. 4.25 Found that, 37% of the respondents (372) Never

used Internet advertisement , followed by 32% respondents used

Internet Advertisement Occasionally , 23% respondents used Internet

advertising Very Often time , and lastly 7.4% respondents always used

Internet Advertisement .

The 37.2% highest respondents never used internet. After that

32.3% used occasionally. Only 7.4% people used always internet

advertisement.

Tools of Demand Creation

The term promotion means to push forward or to advance an idea

in such a way as to gain its approval and acceptance.

In business promotion has a narrower meaning. Promotion is tools

of marketing communication in order to move forward a product, a

service, or an idea in a channel of distribution promotion is used in

187

marketing to inform consumers (demand) of the availability and features

of products and services and to convince the consumers to purchase the

offering. Thus promotion is responsible for the creation of demand which

is one of the main functions of selling. All kinds of promotion can be

employed to create demand for products, to maintain their demand, and to

capture demand from competition. Price and promotion are the alternative

instrument for meeting competition and creation / maintenance of

consumer demand.

In any exchange activity, communication is absolutely necessary.

You may have the best product. It may have fair price. But people will

not buy your product, if they have never heard of it, and they are simply

unaware of its existence. The marketer, therefore must communicate to

his prospective buyers and provide them relevant information in a

persuasive language. People must know that the right product is available

at the right time, at the right place and at the right price. This is the work

of promotion in marketing.

Sales do not take place automatically without promotion or

persuasive marketing communication, even though our product is superb,

it can be in customer wants yet to be met, and we have at our disposal

proper channel of distribution . in essence promotion is the spark plug in

our marketing mix. It alone can provide aggressive method of selling. In

mass marketing mix it alone can provide aggressive methods of selling.

In mass marketing and mass distribution under keen competition,

promotion is the trump card of a marketer.

Promotion Objectives

Information

188

Persuasion

Reminder

Modifying Buyer

Promotion is the process of marketing communication involving

information distribution, persuasion and influence to help the sale of

goods or services. It has two basic purposes: 1. Persuasive

communication influencing the buyer behavior in favors of

purchase/repurchase. 2. Powerful tool of competition for aggressive

marketing.

Elements of Marketing promotion or strategy:-

There are five basic components of a promotion-mix

1. Personal selling.

2. Advertising

3. Packaging

4. Sales promotion and

5. Publicity and public relations.

Comments:-

1. Marketing mix is planned to achieve marketing objectives and

overall corporate objectives.

2. Entire marketing mix and all elements of promotion focus upon the

consumer-needs and wants of a specific market segment, called

target market. The inner circle ‘C’ stand for consumer.

3. All elements of promotion must be duly co-ordinate to ensure

united selling efforts for the creation of demand.

189

4. Promotion mix must be duly integrated with other elements of

marketing mix to ensure unity of action plan to create demand.

5. All marketing decision regarding the promotion mix and marketing

mix are made with the sole aim of consumer’s satisfaction the focal

point under the modern marketing concept.

Let us have a brief description of all the five elements of promotion.

1. Advertising: According to the American Marketing Association,

advertising may be defined as ‘…any paid form of non-personal

presentation and promotion of ideas, goods or services by an

identified sponsor’. It is non-personal as contrasted with personal

selling. It is paid by an identified sponsor as contrasted with

publicity. Advertising is impersonal (printed) salesmanship for

mass selling and a means of mass communication. In general for

low-cost mass-consumed goods, advertising is a good promotional

tool. For other types of products it is used as supporting means of

promotion.

2. Publicity: It is non-personal stimulation of demand for a product

or service or a business unit by placing commercially significant

news about it in a publication or obtaining favorable presentation

of it upon radio, television, or stage that is not paid for by the

sponsor.

3. Personal Selling: Personal selling is a unique type of promotion

presented on a personal basis. It is the most important type of

promotion. It is the best means of oral and face to face (direct)

communication and personal presentation with the prospect for the

purpose of making sales. It is the most effective (but most costly)

means of promotion for complex and expensive products. In selling

190

consumer durable goods and industrial goods it is a supreme form

of promotion.

4. Packaging: Packages is now considered as a powerful tool of

promotion. It is rightly called the ‘silent salesman’. in hardly a

minute or so , it can attract attention, create interest, arouse desire

by presenting a sales message and convince the buyer or prospect

to take purchase decision and action. Impulse selling is done by

packaging. In self-service retail stores or supermarkets, packaging

has replaced the counter salesman effectively. Package is also a

means of advertising.

5. Sales Promotion: Sales promotion covers those marketing

activities other than activities other than advertising, publicity and

personal selling , sales promotion offers aggressive methods of

selling or creating demand and these methods are supporting forms

of promotion Sales promotion supports and increases the

effectiveness of advertising and personal selling. We have sales

promotion to consumers, dealers and the companies own sales

force.

6. Public Relations: It is a form of promotion to create, develop and

maintain a bright public image of an organization in the

community so that the reputation or goodwill of the seller acts as a

good selling point to promote sale of goods under competition.

Under consumer-oriented marketing, publicity and public relations

constitute a part of promotion.

191

Six tools of promotion have definite role in all stages of the selling

process:

1. Advertising creates a favorable atmosphere for personal salesmanship

as the best supporting form of promotion. For low-cost mass-

consumption (convenience) goods, it is quite effective. It is the

cheapest form of mass communication.

2. Personal selling is much more effective for closing of sales and

securing orders. For industrial goods, for selling services like

insurance, for selling medical products, for selling costly consumer

durable goods, it works wonders when duly supported by advertising

and publicity.

3. Publicity is more effective for creating awareness in buyer’s buying

process. It can build up good corporate and product image. It assures

credibility and maintains good public relations with owners,

consumers, community, employees and government.

4. Packaging is the best form of promotion at the point of purchase. It

itself is the medium of advertising. Branding and packaging are

essential in mass markets.

5. All tools of sales promotion, or forms of supporting promotion act as a

bridge between personal selling and advertising, Sales promotion is

considered as aggressive selling or marketing as it can provide

additional powerful incentives for buyer’s action particularly at the

point of purchase, Free distribution of samples, window display,

coupon sales, offer of premium are the best examples of sales

promotion.

6. Public relations, i.e., good relations with consumers, employees,

government, shareholders and the community.

192

Consumer sales promotion:

These devices are as follows:

1. Sampling, usually called consumer sampling. Free samples are

given to consumers to introduce a new product or to expand the

market. The consumers can try to product.

2. Demonstrations or instructions educating the consumers in the

manner of using the products.

3. A coupon is a certificate that reduces price. When a buyer gives a

coupon to the dealer, he gets the product at a lower price (Regular

price is Rs. 20/- ; with a coupon it is Rs. 18/-) Coupon (same as

money) are accepted as cash by retailers.

4. Money-refund orders, i.e., full purchase price is refunded, if the

buyer is not satisfied, helping the introduction of a new product.

Refund offer creates additional interest and increases sales

considerably. It is a good device for creating new users and to

strengthen the brand loyalty.

5. Premium offers are temporary price reductions, which appeal to

bargain instinct, e.g., instant coffee sold in carafes by one company

was very successful. Towels, dinnerware, hair-brushes, key chains,

artificial flowers, ball pens, toilet soap, blades, were given as in

pack premiums. Attractive reusable jars costing separately Rs. 4/-

may be given at an extra charge of Rs. 2/- only. Liril gave a soap

box almost free with two toilet soaps.

6. Price-off e.g., Rs. 1/- off on a Brooke bond pack of 500 grams, the

price-off label is printed on the package. It gives a temporary

discount to the consumers.

193

7. Fashion show and parades are good promotion aids or helps in

men’s and women’s sophisticated clothing’s.

8. Contests or sweepstakes for consumers help to stimulate consumer

interest in the product. In these contests, participants compete for

prizes on the basis of their skill or creative ideas. In sweepstakes,

they submit their names to be included in a drawing of prize

winners. This type of sales promotion is not a lottery because there

is a chance or luck, prizes are offered and a payment to participate

is there.

9. Trading stamps are given for purchasing in particular shop.

Table No.4.26

Sales promotions of Soft drinks

Sr. No. Sales Promotion’s Respondents Percentage 1. Sample 356 35.6 2. Demonstration 46 4.6 3. Coupon 144 14.4 4. Money-refund orders 121 12.1 5. Premium offers 51 5.1 6. Price-off 160 16.0 7. Fashion show 70 7.0 8. Contests or sweepstakes 42 4.2 9. Trading stamps 11 1.1 Total 1000 100


From the Table (No. 4.26) it is seen that, Sales promotion is the

most important factor of Marketing. Without sales promotions soft drink

companies cannot improve their sales. 356 respondents liked the

sampling promotion of soft drink companies(35.6%), Followed by 160

respondents preferred to Price-off sales promotion strategy (16%), then

144 respondents liked the coupon sales promotion strategy (14.4%),

194

then 12.1% respondents preferred money-refund orders for sales

promotion strategies , and 5.1% respondents liked sales promotion , and

4.6% respondents preferred demonstration, 4.2% respondents liked

contests or sweepstakes , and lastly, 1.1% respondents like Trading

stamps .

Finally, Sample distribution sales promotion strategy is found more

popular and increase the sales promotion (35.5%) and then Coupon

(14.4%), then Price-off (16%) likes for the promotion of sales.

Table No.4.27

Sales performance of Soft drinks

Sr. No. Name of the Soft drinks

Average monthly sale

in Percentage

Average Annual

sale in %

Dealer

1. Pepsi 17 22 19 2. Thums up 15 16 14 3. Coca-Cola 13 15 15 4. Mirinda 11 8 8 5. Fanta 8 7 7 6. Slice 8 9 5 7. Sprite 9 8 3 8. 7up 10 7 4 9. Maaza 7 8 5 100 100 80


Table No. 4.27 showing that, Monthly and Annual sales

performance of soft drinks company from Marathwada region. as per the

survey of dealers and consumers here monthly sales of Pepsi soft drink

performance is of 17% , Annual average sales performance is 22% by

the 19 dealers sales view followed by 14 dealers sales performance of

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Thums up average monthly sales is 15% and Annual average sales is

16%, then 15 dealer sales view of Coca-Cola monthly average sales is

13% and annual average sale is 15%, then 8 dealers view Mirinda

monthly average sale is 11% and Annual average sale is 8%, and 7

dealer thought Fanta soft drinks monthly average sale is 8% and Annual

average sale was 7%, and then 5 dealers said that, Slice monthly

average sale is 8% and annual average sale is 9%, 3 dealers view for

Sprite is 9% and annual average sale is 8%, 4 dealer says that 7up

monthly average sale is 10% and annual average sale is 7%, 5 dealer

views that Maaza monthly average sale is 7% and annual average sale is

8%.

Finally it is clear that, Monthly sales performance of Pepsi is 17%

which is highest than others soft drinks , and Annual average sales

performance of Pepsi soft drinks is 22% it is quite highest than other

soft drinks

Table No.4.28

Income group and buying behavior of Soft drinks

Sr. No. Income Group No. of customers

Product preference

1. 1000 -5000 300 Pepsi, Mirinda, Thums up, Maza etc.

2. 5000 -10,000 400 Coca-Cola, Thums up, Fanta, Pepsi

3. 10,000 -15,000 120 Slice, Sprite Fanta, Mt.dew, coke

4. 15,000 – 20,000 075 7up, pepsi, Coke, slice 5. 20,000 – and

above 105 Pepsi, Thums up,

Coke Total 1000


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According to Table No. 4.28 , it is found that, the buying behavior

of different income group of soft drinks for 300 respondents were 1000-

5000 they said income group consumers who preferred product Pepsi,

Mirinda, Thums up, Maaza etc. and secondly, 5000-10000 income

groups, 400 respondents used Coca-Cola , Thums up, Fanta, Pepsi,

followed by 10000 – 15000 income group 120 respondents preferred

Slice, Sprite, Fanta, Mt. dew, coke and 15000 – 20000 income group’s

75 respondents liked 7up, Pepsi, Coke, Slice and lastly 20000 – and

above income group 105 respondents liked Pepsi, Thums up , Coke.

Dealer’s Strategic Sales Promotion:

These devices or helps are:

1. There is a provision of free display material ether at a point of

purchase (POP) or point of sale (POS), depending on one’s view-

point. Display reaches consumers when they are buying and

actually spending their money.

2. Retail demonstrators are supplied by manufacturers for preparing

and distributing the product as a retail sample, e.g., Nescafe instant

coffee to consumers for trying the sample on the spot or

demonstration regarding the method of using the product.

3. Trade deals are offered to encourage retailers to give additional

selling support to the product, e.g., to toothpaste sold with 30% to

40% margin.

4. Seller gives buying allowance of a certain amount of money for a

product bought.

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5. Buy-back allowance is given to encourage repurchase of a product

immediately after another trade deal. A buy-back is a resale

opportunity.

6. Push money (a special incentive, e.g., Rs. 10/- for selling one

pressure cooker) may be given to a retail salesman by a wholesaler

or manufacturer. It is a promotional allowance inducing the

salesman to push the sale of a particular brand of a product. It is a

device for adoption of aggressive selling. Customers are not aware

of such a push money deal. Strictly speaking it is not a fair trade

practice.

7. Seller gives free goods, e.g. one free with 11, or 2 free with 10 are

common free deals.

8. Advertising and display allowance may be given.

9. Sales contests of salesmen are held.

10. Dealer loader (a gift for an order) is a premium given to the retailer

for buying certain quantities of goods or premium for special

display done by a retailer.

11. Dealer and distributor training for salesmen, which may be

provided to give them a better knowledge of a product and how to

use it.

Reasons for sales promotion :

1. Introduction of a new product.

2. Stimulus for a new use of a product.

3. Encouragement for increasing frequency of purchase.

4. Appeal to a special area of the market.

5. Combination offer to encourage the use of other products.

6. Creation of a dealer interest and inducing thm to stock the articles.

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7. Securing shelf space in the retail window.

8. Counter balancing price competition .

9. Special training of salesmen.

10. Seasonal and grand reduction sales.

11. Capturing bargain hunting and non-brand conscious buyers through

bargain sales.

12. Acceleration to slow-selling lines.

Exhibition and Trade Fairs

An exhibition stand or stall is a form of showroom, but it is a very

distinctive form of showroom. It provides a temporary market place at

which buyers and sellers meet. There are various types of exhibitions,

international trade fairs, national and local fairs and exhibitions (usually

sponsored by a chamber of commerce or trade association). We may have

indoor or outdoor public exhibitions and fairs and shows, e.g.,

agricultural and industrial machinery and equipment, cottage industries

and handcrafts, fashion shows and parades, domestic electrical

appliances, office machines and appliances, etc.

An article shows at an exhibition at least makes a good impression

without creating actual demand. A man is greatly impressed with a

typewriter, time-clock or simple appliance. Its makes up his mind to buy

one sooner or later. Usually, people are in a buying mood when they visit

an exhibition.

A successful stand in an exhibition or a trade fair gives three

services to the owner: (1) It provides entirely new business which cannot

199

be secured by any other method. (2) Buyers unwilling to meet salesmen

or visit the shop or showroom will, on their own account, do a lot of

purchases at these fairs or exhibitions. These buyers are usually resellers.

(3) Competitors compete with each other for getting maximum business.

The conservative buyer can compare the competitive lines displayed in

close distance to one criticism of their regular suppliers only at such

exhibitions. Thus, at exhibitions constructive buyers (resellers) can be

easily handled and captured by rival sellers.

In many trades, exhibitions are held annually at the same period of

the year. These exhibitions attract a large number of many sales

campaigns. Buyers purchase all their requirements, e.g., utensils,

furnishings, appliances, clothing’s, fittings, at these exhibitions.

Publicity

Publicity is also called marketing public relations. Publicity is not

paid for by the organization. Publicity comes from news reporters,

columnists and journalist’s people. It comes to the receiver as the truth

rather than as a commercial. Public relations and publicity taken together

becomes the fourth major ingredient of the firm. Every firm tries to create

good public relations so as to give good publicity.

Defective products, unfair trade practices, anti-social activities

often result in unfavorable publicity, consumer ill-will, bad product

image, increased consumer protests, government regulations and so on.

The firm having a poor public image will have lower sales and lower

profits. Reducing the impact of bad news is as important as creating good

publicity.

200

Under the social marketing concept, publicity, and public relations

are assuming unique importance in the firms promotions mix.

Consumerism is altering consumer attitudes not only towards products,

but also toward the firm and dealers selling the products of the firm.

Public Relations: Public relations have now become an important

marketing function. The total process of building good will toward a

business enterprise and securing a bright public image of the company is

called public relations. It creates a favorable atmosphere for conducting

business. There are four groups of public; 1.customers. 2. Shareholders,

3.Employees, and 4. The community. The marketers should have the best

possible relations with these groups. Public relations complement

advertising by creating product and service credibility. Effective

marketing communication is not possible without establishing and

maintaining mutual understanding between the company and its

customers. The lubricant making the wheel of marketing run smoothly is

public relations. Bright image is created and maintained only by public

relations.11

Concluding Remark

Brand Preferences represent a fundamental step in understanding

consumer choices. Overall study of consumer behavior and preferences of

soft drinks product e.g. Coca-Cola, Thums UP, Pepsi, Mirinda, 7up,

Limca, Slice, & Soda etc. are used in Marathwada region. But the

Promotion of Product & Marketing strategies of soft drink is not more

effective. The advertising media TV, Newspaper, Messages, etc. are very

important for promotions of soft drinks sell. It is necessary to improve

201

advertisement of soft drink product as well as improve social media of

advertisement.

Most of the consumers are used soft drinks at the time of meal,

dinner, and Bar restaurant in city area. Soft drink companies not entered

in rural area. Rural area local seller’s are made their Local drinks. Rural

consumer’s are like the local brand because that is easily available and

cost is also very less than coca-cola and Pepsi soft drinks.

As per the study of soft drinks retailer’s, dealer’s are not interested

to provide consumer facilities at home delivery, discount, gift scheme.

Indian customer’s are the price minded, so when consumer’s are used soft

drinks in Restaurant Bar the outlet’s and retailers are sell it in double

price. So the consumer’s are thinking negative about the soft drink

product.

In Marathwada region PepsiCo soft drinks provide good facility to

consumer. PepsiCo soft drinks consumption is increase in Marathwada

region. In the month of February, March, April, May pick period of soft

drinks advertising and so the trend for advertising are increased. TV

advertisement were highest changed the consumer behavior .After that

Internet and Newspapers Media popular in middle class consumer. But it

is not for illustrate person.

Most of the Consumer buying soft drink for Family use. In India

Coca-Cola and PepsiCo have a combined market share of around 95%

directly or through franchisees. The per capita consumption of soft drinks

in India is around 5 to 6 bottles.

202

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