final soft drinks cb
TRANSCRIPT
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CONSUMER BUYING BEHAVIOR
TOWARDS SOFT DRINKS
GROUP 5
Jatin Jain 147Nitasha Basu 158
Manika Dhamija 164
Priyanka Malhotra 183
Vibhu Sharma 186
Anusha Gupta 194
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MANAGEMENT PROBLEM
A multinational soft drink company is planning to establish
their business operations in India.
Facilitate decision making of top management by collectingprimary data on consumer buying behaviour in the soft drink
category, which will help in decision making process of top
management.
Product category taken: Soft drinks.
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INTRODUCTION
The soft-drink industry comprises companies that
manufacture non-alcoholic beverages and carbonated
mineral waters, concentrates and syrups for carbonated
beverages.
Soft drinks can be further divided into carbonated and non-
carbonated drinks.
The government has adopted liberalized policies for the soft
drink trade to give the industry a boast and also to promote
the Indian brands internationally.
With FMCG companies experiencing the slow down, however
the soft-drink industry is leading the way with staggering
increase in growth rates.
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SOFT DRINK INDUSTRY - INDIA
The 50-billion-rupee soft drink industry is growing at 6 to 7%annually at present in India. In India, Coke and Pepsi have acombined market share of around 95% directly or throughfranchisees.
There are about 110 soft drink producing units (60% being ownedby Indian bottlers) in the country, employing about 125,000
people. The per capita consumption of soft drinks in India is around 5 to 6
bottles, compared to Pakistan's 17 bottles, Thailand's 73, the
Philippines 173 and Mexico 605. The industry contributes over Rs 12 bn to the exchequer and
exports goods worth Rs 2 bn. It also supports growth of industrieslike glass, refrigeration, transportation, paper and sugar.
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0
50
100
150
200
250
300
350400
450
500
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2014-15
Demand of Soft-drinks
Million Bottles
24%
18%
32%
26%
Market Structure
North
East
West
South
0
5
10
15
20
25
30
35
Thumbs Up Coca Cola Pepsi
Cola Drinks - Segmentation
Percentage
0
1
2
3
4
56
7
8
9
10
Gold Spot Fanta Mirinda Limca
Non-Cola - Segmentation
percentage
MARKET STATISTICS
Source: www.researchandmarkets.com
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OBJECTIVES OF THE STUDY
Identification of the factors that affect the buying behaviour
of consumer with respect to soft drink category.
Impact of external factors like firm's marketing efforts andsocio-cultural environment in consumer buying behaviour.
Impact of psychological field (motivation, perception,
learning, personality, attitudes) in decision making process ofconsumer with respect to soft drink category.
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RESEARCH METHODOLOGY
Data collected through articles and researchpapers on soft drink industry, containinginformation about the brands.
SECONDARY
RESEARCH
Quantitative Research - A survey using aquestionnaire to analyze different aspects ofthe brand like its awareness, recall andperception.
PRIMARYRESEARCH
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SAMPLING PROCESS
Sample Size: 110 samples across Delhi (Tier 1)
Target Population: Consumers of soft drinks
Sampling Unit: house-makers, school and college students and
professionals.
Sampling Frame: Malls, Contacts and E-mail.
Sampling Technique: Convenience & Judgemental Sampling
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Data Analysis & Interpretation
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Demographics
58%
42% Male
Female
GENDER
Below 18 18-24 25-35 Above 35
17%
36%
26%21%
AGE
8%
34%
58%Rs 1-5 Lakhs
Rs 5-10 lakhs
Above 10 lakhs
YEARLY FAMILY INCOME
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0
5
10
15
20
25
30
35
40
45
50
Carbonated Non-carbonated Both
FemalesMales
KIND OF BEVERAGE PREFERENCE
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Type of Non Alocoholic Drink
0 5 10 15 20 25 30 35
Others
Milk Shakes
Diet Cola
Lemon-Lime Sodas
Health drinks
Regular Cola
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Purchase Pattern
Everyday Thrice a week Twice a week Once a week Rarely
14 26 29 34 7
0
5
10
15
20
25
30
35
Everyday Thrice a
week
Twice a
week
Once a
week
Rarely
Percentage %
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Type of Packaging
Tetra pack
12%
Pet bottle49%
Can
20%
Glass bottle
19%
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Factors influencing consumer topurchase soft drinks
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Factors considered while purchasing soft drinks
Taste
Quality
Price
Packaging
Advertisements
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Brand Name
Brand Personality / Image
Promotional Offers
Influence by friends and family
Availability
Retailers Suggestion
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VeryImportant
31%
Important
44%
Neutral11%
less important
12%
Not at all
important
2%
Taste
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Very Important
47%
Important33%
Neutral
17%
less important
2%
Not at all
important
1%
Quality
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28%
39%
15%
12%
6%
PriceVery Important Important
Neutral less important
Not at all important
19%
25%
36%
9%
11%
PackagingVery Important Important
Neutral less important
Not at all important
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VeryImportant
15%
Important
35%
Neutral25%
less
important
14%
Not at allimportant
11%
Advertisement
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24%
44%
15%
9%
8%
Brand NameVery Important Important
Neutral less important
Not at all important
12%
14%
48%
12%
14%
Brand
Personality/ImageVery Important
Important
Neutral
less important
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29%
27%
18%
12%
14%
Promotional OffersVery Important Important
Neutral less important
Not at all important
42%
31%
12%
10%
5%
AvailabilityVery Important Important
Neutral less important
Not at all important
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7%
10%
36%26%
21%
Retailer's SuggestionVery Important Important
Neutral less important
Not at all important
15%
19%
26%
26%
14%
Influence of
friends/FamilyVery Important Important
Neutral less important
Not at all important
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Impact of external factors like firm'smarketing efforts and socio-cultural
environment in consumer buying
behaviour.
C id ti f B d hil P h i
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yes
44%
no33%
maybe23%
I understand the features of soft
drinks well enough to evaluate thebrands.
I have a preference for one or
more brands in the soft drink
class.
yesno
maybe
65%
15 %20 %
Majority of consumers are inclined to a particular brand and have evaluated its
features thoroughly.
Consideration of Brand while Purchasing
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yes
66%
no
22%
maybe
12%
I usually purchase the same brand within
the soft drink class.
If I received information that was contrary to
my preferred soft drink, I would still keep my
preferred brand.
yesno
maybe
30
45
25
Even the brand loyal customers consider critics
of their chosen brand.
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Effects of Advertisements
Advertisements - most influencing factor in attracting customer
Celebs endorsing a soft drink comes next
Sales promotion and sponsoring events are other attracting factors
All the factors are quite close, so no factor can be ignored
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Medium of Advertising
Outdoor advertising and Television are the main source of advertising
Followed by Window Display
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Sources of Purchase
Nearby Convenience Stores are main purchase point for customers
Supermarkets and Local Pan Shops are next
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Impact of psychological field in
consumer decision making processwith respect to soft drink category.
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What kind ofattitude do you have towards carbonateddrinks?
positive
45%
negative33%
neutral
22%
Attitude
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Brand Loyalty
Most of the customers are not too brand loyal
Availability is a strong point for sales
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I would prefer Indian soft
drinks(jaljeera, nimbu paani , lassi) to
western soft drinks (flavoured water,colas etc).
Yes No Maybe
15%
23%
20%
18%
13%
11% Male
Female
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Scope for new products
9%
14%15%
9%
12%11%
6%
9%
3%
7%
5%
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In your opinion what could be the reason for consuming softdrinks?
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
gives prestige Gives Refreshment /
Quenches thirst
Economical Reflects Life Style Tastes Good
Motivation
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yes
33%
no
32%
maybe
35%
This soft drink helps me express the I
within myself and makes me happy.
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Buying Behavior Influencer
Customers tend to buy the brand they like and not get influenced by
others
Family influences the buying behavior of majority of the rest
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Purchase Behavior at a Restaurant
Customers show a different purchase behavior when in a restaurant
They most of the times they go with the group while ordering a soft
drink
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Learning
Classical conditioning : ensure certain behaviourthrough repetition.
Eg :Coca-Cola's "happiness machine: evokeshappiness and togetherness.
Pepsi associated with fun and happy times by useof cricketers and celebrities.
Subliminal advertising : At movie theatre toincrease sales of popcorn and Coke.
Instrumental conditioning : learn by trial and error
Informal learning is most often mimickedbehaviour and has an impact on soft drinks.
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Top of Mind Recall
Coca cola
39%
Pepsi
33%
Thums up
11%
Fanta
5%
Limca
3%
Red bull
2%
Others Fruity,real
juice, tropicana,
maazaa
7%
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Perception - Word association
Thanda
Spread happiness
Coke
Refreshing
Best
Harmful/hazardous
Global co.
Original recipe
Youthful , energetic
American/western brand
Sweet taste
Popular
12%
11%
13%
8%
13%
4%
7%
5%
9%
8%
4%
6%
COCA COLA
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PEPSI
4%
7%
10%9%
6%7%
14%
8% 8%9%
7%
11%
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Conclusion
The most important factors for purchase behaviourwere taste, price, brand name and quality.
Independent small grocers/convenience stores lead thedistribution of soft drinks.
Outdoor advertising and Television are the mostpopular mediums of advertising.
Celebrity advertising has a powerful effect onconsumer.
Brand switching cost is low hence most consumers arenot too loyal.
Buying behaviour is contradictory in situations ofisolation and while socialising.
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The most important reason cited for purchasingsoft drinks is for quenching thirst and attainingrefreshment.
Coca Cola and PepsiCo are in the top of mind ofpeople.
Pepsi has stuck with its high energy and comedy-driven strategy while Coke has been projecting its
core values of happiness and togetherness Consumers have become increasingly aware of
health and fitness-related issues.
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Managerial Implications
Launch a differentiated product in the saturated softdrink market.
Need for integrated marketing campaigns to make amark in the highly competitive soft drink industry.
Endorsement by celebrities also creates top of the mindrecall.
Convenience stores are the most important purchasepoint, hence must be an important distribution partner.
Focus on taste, branding and price. Target growing market for health and wellness
products. Consumers are seeking healthier beverageseven if they are more expensive, due to theirpositioning.
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