Download - Compartive Study on Pepsi & Coke
WINTER TRAINING PROJECT
On
CONSUMER PERCEPTION TO WORDS PEPSI AND
COKE’S BEVERAGES
In
Meerut
Submitted to: submitted by:Mr. V.S.Solanki sir Abhishek SinghIPM, Meerut 2nd semester
PGDM 2008-2010
Institute of Productivity & Management
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ACKNOWLEDEMENT
It is indeed a great pleasure and privilege for me to present “CONSUMER
PERCEPTION TO WORDS PEPSI AND COKE’S BEVERAGES” in Meerut in
year 2006 - 2008.
I take immense pleasure in thanking to Mr. V S Solanki Sir & Mr. Susant Mittal Sir for
giving me an opportunity to do this project and for their valuable suggestion and guidance.
It is pleasure to thank Mr. Parmindar Sir for allowing me to use the lab at odd hours in
the night.
I also wish to thank library madam for allowing me to use the library and for helping
colleting books and magazines. I also extend my thanks to all those who directly or
indirectly involved in my project completion.
At last I would like to thanks once again to our faculty Mr. V S Solanki Sir whose sincere
support has enable me at each and every step and his experience always give me the right
direction to achieve my goal.
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CONTENT
DECLARATION.....................................................................................................................5
GUIDE CERTIFICATE........................................................................................................6
INTODUCTION.....................................................................................................................7
CONTROVERSY ON PRESENCE OF PESTICIDES......................................................9
ABOUT MEERUT...............................................................................................................10
RESEARCH OBJECTIVES...............................................................................................11
METHODOLOGY...............................................................................................................12
SOURCE OF COLLECTION OF DATA..........................................................................13
ASSUMPTIONS...................................................................................................................13
REPRESENTATION OF DATA THROUGH CHART..................................................14
RATIO OF MALE & FEMALE RESPONDANT............................................................14
PROFILE OF RESPONDENT...........................................................................................15
PRODUCT DETAIL............................................................................................................16
MARKET SHARE OF PEPSI & COKE’S BEVERAGES..............................................17
PRODUCT SHARE OF PEPSI..........................................................................................18
PRODUCT SHARE OF COKE..........................................................................................19
OVERALL SHARE OF THE PRODUCTS......................................................................20
REASON BEHIND CHOOSING THE PRODUCT.........................................................21
EFFECT OF ADVERTISMENT........................................................................................22
BRAND LOYALTY.............................................................................................................23
PRESENCE OF PESTICIDES...........................................................................................24
CONSUMPTION OF BEVERAGRS.................................................................................25
INTERPRETATION...........................................................................................................26
RESEARCH FINDINGS.....................................................................................................27
RECOMMENDATION.......................................................................................................28
LIMITATIONS....................................................................................................................29
CONCLUSION.....................................................................................................................30
BIBLIOGRAPHY................................................................................................................31
Questionnaire.........................................................................................................................32
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PREFACE
“Learning categories you and practicing on that learning specializes you”
Practical aspect gives more knowledge and experience than the theory and no learning can
be completed without practical aspects.
Winter training is one of the most important parts of our curriculum for management
students, its basic idea is to strengthen the students’ concept through winter training and
make them equipped with recent development.
This project report has been in partial fulfillment of my post graduate diploma in
management (PGDM).
In days when it was business as usual companies could succeed by there new products
with concept and supported by hard selling and good advertisement and consider that
customer exhibit varying diverse requirement for product/Services combinations and price
consider that they have high and rising expectations of quality and services. In the face of
their vast choices. Customers will gravitate to the offering that best meet their individual
needs and expectation value.
And all this will come out as the positioning of the brand in the market.
Date:
Place: Meerut ABHISHEK SINGH
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DECLARATION
I do hereby declare that this project entitled with “Consumer Perception to Words
Pepsi and Coke’s Beverages” in Meerut Area is my own and original work. This is
for fulfilling the requirement of Post Graduate Diploma in Management as a winter
training project. It has never been submitted nor been published else where.
Date:
Place: Abhishek Singh
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GUIDE CERTIFICATE
This is to certify that this project report titled “CONSUMER PERCEPTION TO
WORDS PEPSI AND COKE’S BEVERAGES” has been submitted in partial
fulfillment of award of Post Graduate Diploma in Management (PGDM) of Institute
of Productivity and Management, Meerut.
It is a confide winter training project report carried out by Mr. Abhishek Singh, Roll
No. 02, Session 2008-2010
Date: Mr. V.S. Solanki
Place: Faculty of IPM, Meerut
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INTODUCTION
Pepsi was founded in New York in 1965. Its head quarter is in Purchase, New York. It is
Producing Non-alcoholic beverage and Food processing items. As my topic is Non-
alcoholic beverage so I am only focusing on that only. Pepsi is a carbonated beverage
that is produced and manufactured by PepsiCo. It is sold in retail stores, restaurants
cinemas and from vending machines. The drink was first made in the 1890s by
pharmacist Caleb Bradham in New Bern, North Carolina. The brand was trademarked on
June 16, 1903. Pepsi arrived on the market in India in 1988.PepsiCo gained entry to
India in 1988 by creating a joint venture with the Punjab government-owned Punjab
Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture
marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed;
PepsiCo bought out its partners and ended the joint venture in 1994. Others claim that
firstly Pepsi was banned from import in India, in 1970, for having refused to release the
list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market
shortly afterwards. These controversies are a reminder of "India’s sometimes
acrimonious relationship with huge multinational companies." Indeed, some argue that
PepsiCo and The Coca-Cola Company have "been major targets in part because they are
well-known foreign companies that draw plenty of attention."
Ingredients
Pepsi-Cola contains basic ingredients found in most other similar drinks including
carbonated water, high fructose corn syrup, sugar, colorings, phosphoric acid,
caffeine, citric acid, and natural flavors. The caffeine-free Pepsi-Cola contains the
same ingredients minus the caffeine.
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Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending machines
worldwide. The Coca-Cola Company in Atlanta, Georgia produces it. It was
incorporated in 1886. The Coca-Cola Company claims that it is sold in over 200
countries.
The US soft-drink giant, Coca-Cola, reentered India in the 1990s after abandoning its
businesses in the late 1970s in the wake of Foreign Exchange Regulation Act of 1973.
The Act, meant to 'Indianize' foreign companies, made it mandatory for foreign
companies to dilute their shareholdings to 40 per cent. Instead of diluting its
shareholdings to the required limit prescribed by the Act, Coca-Cola opted to discontinue
its operations in India.
Coca-Cola is a leading player in the Indian beverage market with an approximate 60 per
cent share in the carbonated soft drinks segment.
The US soft-drink giant, Coca-Cola, reentered India in the 1990s after abandoning its
businesses in the late 1970s in the wake of Foreign Exchange Regulation Act of 1973.
The Act, meant to 'Indianize' foreign companies, made it mandatory for foreign
companies to dilute their shareholdings to 40 per cent. Instead of diluting its
shareholdings to the required limit prescribed by the Act, Coca-Cola opted to discontinue
its operations in India.
Logo design
The famous Coca-Cola logo was created by John Pemberton's bookkeeper, Frank Mason
Robinson, in 1885. It was Robinson who came up with the name, and he also chose the
logo’s distinctive cursive script. The typeface used, known as Spenserian script, was
developed in the mid 19th century and was the dominant form of formal handwriting in
the United States during that period
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Controversy on presence of Pesticides
In 2003 and again in 2006, the Centre for Science and Environment (CSE), a
non-governmental organization in New Delhi, claimed that soda drinks
produced by manufacturers in India, including both Pepsi and Coca-Cola, had
dangerously high levels of pesticides in their drinks. Both PepsiCo and The
Coca-Cola Company maintain that their drinks are safe for consumption and
have published newspaper advertisements that say pesticide levels in their
products are less than those in other foods such as tea, fruit and dairy
products
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About Meerut
Meerut “The City of Revolution” is a major city of western U.P., located
around 65 Km. from the national capitol DELHI. It has a population more than
a million and it is considered to be one of the fastest developing cities in
western U.P. Since it is close to the National Capital so the effect of rapid
modernization can easily be seen in the lifestyle of the people
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Research Objectives
Comparative study to find out the market share of the Products in
Meerut.
To study the effect of Advertisement on the buying decision of the
Consumer.
To Study the Consumer Perception about the taste and availability of
product.
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METHODOLOGY
I have done Descriptive research to find out our objectives. In descriptive
research we use the primary and secondary data.
Research methodology is the way to systematically solve the research
problem. The method used for the research is Descriptive Research to find
out our objectives.
In descriptive research we use the primary and secondary both data,
Sample Design for primary data have been collected through probability
sampling. In which I have used convenient sampling.
Data is Collected through Market survey in Pallavpuram, Shastri
Nagar, Ganga Nagar, Golden Avenue, Paleda of Meerut City.
Data Collection Instrument: - Well prepared structured questionnaires
were used in this study, which includes both closed-ended and few open-
ended questions to get information based on the objective of the research
process. People of different age group from different economic
background were asked to fill the questionnaire containing 15 questions.
Sample Size is taken 85 out of which 5 questionnaires had been rejected
due to Mistakes, which was made by the respondents.
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SOURCE OF COLLECTION OF DATA
All the useful data which were require for this research has been collected
through Primary and secondary date.
Primary data collected through Questionnaire
Secondary data collected through Internet, Magazines and
Newspaper
ASSUMPTIONS
It is assumed that the chosen sample is the representation of whole
population.
It is assumed that information provided by the samples is accurate
and best of their knowledge.
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REPRESENTATION OF DATA THROUGH CHART
RATIO OF MALE & FEMALE RESPONDANT
Total numbers of respondent were 85 out of which 5 questionnaires is rejected. So
final date interpretation is done on the basis of only 80 questionnaires.
Total respondent were 80
Gender Number
male 67
Female 13
84%
16%
Male Female
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Profile of respondent
Total respondent were 80
Profile Number
Student 39
Service 18
Housewife 5
Professional 6
Businessman 8
others 4
48%
23%6%
8%
10%
5%
Student Service HousewifeProfessional Businessman Other
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PRODUCT DETAIL
Beverage product can be divided in two types:
Cola drinks
Soft drinks
Pepsi Products:
Pepsi (cola drink)
7UP (cola drink)
Mirinda (soft drinks)
Dew (cola drink)
Slice (soft drinks)
Coke Products:
Coke (cola drink)
Mazza (soft drinks)
Limca (cola drink)
Sprite (cola drink)
Fanta (soft drinks)
Thums up (cola drink)
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MARKET SHARE OF PEPSI & COKE’S BEVERAGES
Total respondent80
Company No of respondent
Pepsi 37
Coke 43
Market share
54%
46%
Coke Pepsi
On the basis of above data coke is leading with 54% market share
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PRODUCT SHARE OF PEPSI
Total respondent of Pepsi 37
Product Line No of Respondent
Pepsi 11
7up 6
Mirinda 7
Dew 6
Slice 7
29%
14%19%
16%
22%
Pepsi 7up Mirinda Dew Slice
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PRODUCT SHARE OF COKE
Total respondent of Coke 43
Product Line No of Respondent
Coke 9
Mazza 10
Limca 3
Sprite 6
Fanta 3
Thums up 12
21%
23%
7%14%
7%
28%
Coke Mazza LimcaSprite Fanta Thums up
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OVERALL SHARE OF THE PRODUCTS
Total respondent 80
Product Line No of Respondent
Pepsi 11
7up 6
Mirinda 7
Dew 6
Slice 7
Coke 9
Mazza 10
Limca 3
Sprite 6
Fanta 3
Thums up 12
13%
8%
9%
8%
9%11%
12%
4%
8%
4%
14%
Pepsi 7up Mirinda Dewslice Coke Mazza LimcaSp[rite Fanta Thums up
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REASON BEHIND CHOOSING THE PRODUCT
Total respondent 80
Preferences No of Respondent
Taste 61
Advertisements 8
Schemes 5
Easy availability 4
People Like 1
Others 1
77%
10%6% 5% 1%1%
Taste Advertisment schemeseasy availibility People like other
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EFFECT OF ADVERTISMENT
Total respondent 80
Influence of Advertisements No of Respondent
Yes 30
No 50
38%
62%
Yes No
62% respondent said that Advertisements Influence their buying decision,
While 38% said that it doesn’t influence them for buying
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Brand loyalty
If the desired verity of beverage is not available at particular shop, how does
consumer respond?
Total respondent 80
Respond No of Respondent
Take another verity 26
Visit next shop 35
Suggest to have same verity 13
Postpone decision 6
32%
45%
16%7%
Take another verityvisit next shopSuggest to have same verityPostpone decison
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PRESENCE OF PESTICIDES
Total respondent 80
Respond No of Respondent
Fully disagree 32
Agree to some extent 43
Fully agree 5
40%
54%
6%
Fully disagree Agree to some extentFully agree
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CONSUMPTION OF BEVERAGRS
How often people consume beverages?
Total respondent 80
Respond No of Respondent
Once a week 19
Twice a week 20
More than twice a week 14
Once in two week 3
When ever you required 24
24%
25%18%
4%
29%
once a week twice a weekmore than twice a week once in a weekwhen ever you need
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INTERPRETATION
On the basis research the facts which have come out are:
Coke is leading the market with 54% market share in Meerut, while
Pepsi is covering only 46% market in Meerut.
Under the brand name of Pepsi, Pepsi is the capturing highest market
share with 29% in Meerut, while slice is second market leader of Pepsi
with 22% market share.
Under the brand name of coke Thums up is market leader with 28%
market share and Fanta is second largest with 23% market share.
The population between 12- 30 year prefer the cola products, while
population above to 50 and below 12 prefer soft drinks, and population
prefer both in Meerut.
Only 38% population only influenced by advertisement, rest 62%
population belies that Advertisements are not much effective.
45% population are loyal to words there product.
54% population beliefs there cold drink have pesticide up to some
extent. Instead of that they are using cold drinks.
77% of population is being influenced by taste only, while 10 %
population by Advertisements only.
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Research Findings
As it was 1st research Project of my life, so it gave my lot of experience
which will be very helpful in my life as well as in my summer training.
On the basis of that research we find that in case of beverages people
are much influenced by taste rather than Advertisements and other
things.
I come to know that Young generation is the biggest consumer of cold
drinks than any other.
By this research we analyze that male prefer cola dinks, while female
prefer soft drinks.
Frequency of consume to cold drinks is higher of male than female.
By combining all the beverage verities I come to know that Thums up
is the market leader with 14 % total market share while Pepsi is the
second highest market leader with 13% market share.
If the Buying decision of consumer is rated -
1st preference will go to Taste, 2nd will go to Brand,
3rd preference will go to schemes, 4th preference will go to Price,
5th preferences will go to Packaging.
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Recommendation
Though the coke is enjoying about 54% of the total market share and it is
market leader in Indian beverage industry. While with the 46 % market
share Pepsi is on the second step.
If we are analyzing properly then we find Pepsi is small product portfolio
than coke, which is responsible for its second position.
Pepsi should increase its product portfolio to capture the Coke’s
market share.
Companies should focus on the taste of the product because 77%
population is influenced by taste only.
Young generation is the potential consumer so companies should
more focus on them.
As we find that 40 % population consumes 200ml cold drinks. Which
comes in glass bottles, these bottles are being retuned back for
refilling to companies. Which incurred again cost of re-
transportation. If company start to supply 200 ml cold drinks in pet
bottles (plastid bottles) it will be good for company because 40% of
population is using only 200ml.
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Limitations
It was my 1st research project so due to curiosity I put my whole heart on this project. But still are certain limitations while doing the research work. Some of the limitations are as follows.
One of the biggest limitations with this project work is the time factor. As we did our project in Meerut, which is not well known to me. So it become difficult to conduct survey in Meerut
The sample size of 80 respondents is too small to find out the consumer
perception. Because I was covering Pepsi & Coke both.
There might have been tendencies among the respondents to amplifying or filter their responses under the testing.
In some cases, the respondent was not giving me the proper reply. He/she might think that this is only wastage of time or this might create some problem etc. And as a result he/she has given some fake answers and fills the questionnaire very casually.
The area of study is limited and confined to certain limitation.
It is possible that some potential source might have remained untapped.
Since the result has been drawn on the basis of the information provided by the respondents therefore there is a chance of error.
The questioners were in English so many people were avoiding to fill the questioners
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Conclusion
After the completion of project I have seen the different aspects of this Winter
Training Project. Also I have gained some new experience about the consumer
research. While surveying I have met a large number people, with different
perceptions, with different nature, and as a result of this I have learnt a lot of things
like how to talk with the different people with different behavior. I am benefited a lot
and this will definitely help me a lot in my summer training as well as in the future.
Also the outcome that came out from this research work is that in city Meerut coke is
the market leader with 54% market share. Pepsi is having only 46% market share. I
come to know that Pepsi is the leading brand of Pepsi co. with 29% market share of
its total market share and Thums up is the leading brand of coke with 28% market
share of itself.
Through this research I also come to know that young generation is the potential
market for beverage industry, taste is the 1st preference to choosing the product and
one more important factor that below 12 years and above to 50years people like the
soft drinks while people between 12- 30 year prefer cola drinks and rest people who
comes in between 30 -50 year have common.
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BIBLIOGRAPHY
Internet:
www.pepsi.com
www.google.com
www.wikipidia.com
www.pepsicenter,com
www.agencyfaqs.com
www.indiainfoline.com
www.pepsicoworld.com
Books:
Magazines
Research papers
Research Methodology by C.R Kothari
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Questionnaire
Respected Sir/MadamI am MBA student of IPM Meerut. As of the course of my curriculum, I am doing the market research. Therefore, I need your valuable view for the question given below. I will be highly grateful to you.
1. Which brand of cold drink you like the most?
a) Pepsi b) 7up c) Mirinda
d) Dew e) Slice f) Coke
g) Mazza g) Limca h) Sprit
i) Fanta j) Thums up
2. What is the reason behind choosing your Brand?
a) Taste b) Advertisement
c) Easily available d) People like
3. How many times in a week, you take cold drink.
a) Once b) twice c) thrice d) More than three time
4. Which quantity of your cold drink you often purchase?
a) 200ml b) 300ml c) 500ml d) 2Lt
5. What is your Age?
Please specify ( )
6. What is your income per month?
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a) 0-10 thousands ( ) b) 10-15 thousands ( )
c) 15-20 thousands ( ) d) more than 20 thousands ( )
7. What is your profile?
a) Student b) Professional
c) Working d) Any other Specify
8. Since how much time you are using your brand?
a) 1-6 month b) 6-12-month c)1-2 year d) more than 2 year
9. If your desired brand of cold drink is not available at particular shop
a) Take any other brand b) visit next shop
c) Suggest to have that brand d) don’t take any brand
10. How many members in your family are?
Please specify ( )
11. Which brand of cold drinks often comes in your family?
Pepsi 7up Mirinda Dew Slice Coke Thums up Limca
Sprit Fanta Mazza
Name :- Age :- Occupation :-Address :- Contact No (If any) :-
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