soft drinks project report

7/28/2019 soft drinks project report

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Alliance Business Academy……………………………………………………………….

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CHAPTER I

THEORITICAL BACKGROUND OF THE PROJECT STUDY

Consumer or buyer is central figure of all marketing activities. It is the consumer who

determines the growth, prosperity and even existence of an industry. Hence the marketer

should always feel the pulses of consumers. The mind decides and body acts. But what

goes on in the mind of a consumer is difficult to understand. The marketers need to

understand fully the working of buyer‘s mind and devise suitable strategies to crate a

favorable orientation in the mind of consumers.

The project has been titled ―A study on consumer buying behaviour towards soft

drinks in Bangalore metro is a comparison of leading brands.‖ As the titled indicates, itis an attempt to study consumer buying behaviour towards various soft drinks that is what

are the factors that influence the buying behaviour and an analysis of market position of

some of the leading brands existing in the market. These studies will help to find a

solution for some of the questions like who is the consumer. What motivates the

consumer? What induces him to buy? Why does he or she buy a specific brand? How

does he react to a new brand introduced in the market? His perception towards some of

the leading brands in soft drinks industry.

Consumer Behavior

Market consists of buyers. Hence it is the behaviour of buyers that is central to an

understanding of markets. Marketers must consider their customer‘s wants, preferences,

and buying behaviour. Such a study will provide clues for developing new products and

for making changes in the existing products; prices and other marketing mix elements. If

the producer disregards the wants and preferences of consumer and goes on producing

the goods, which do not satisfy the consumers, the goods cannot be sold in the market.

In the words of Walters and Paul, ―Consumer behaviour is the process where by

individuals decide, what when, where, how and from whom to purchase goods and

services‖ of all the different categories of human behaviour -eating, sleeping, reading,




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working, playing and so on – buying is one of the most complex and most important one.

This is because the buying involves parting with money, which may be part of a hard,

earned wage, profit of a riskful investment or even the entire savings of lifetime.

Buying Behavior

According to Webster, ―Buying behaviour is all psychological, social and

physical behaviour of potential customers as they become aware of, evaluate, purchase,

consume and tell other people about products and services.‖

Buying behavior involves a complicated series of stimulus and response reactions

to many factors or motives. These motives may be expressed or unexpressed and are

based up on deep-seated needs or more openly felt wants. When some one buys

something, he or she psychologically satisfies both a need and a want. He or she buys a

specific product out of a vast log, because it provides him or her with certain mental or

physical satisfactions.

Characteristics of consumer or buyer behaviour

1. Buyer behaviour comprises mental and physical activities of a buyer when he

wants to buy goods and services to satisfy his wants.

2. It includes both visible (physical activities like gong to market, buying the

product and using it) and invisible activities (mental activities like thinking about

product and deciding to buy or not to buy).

3. It is very complex and dynamic tax

4. An individuals buying behaviour is influenced by internal factors such as needs,

habits, attitudes, motives, and also by external or environmental factors like

family, social groups, culture, status, economic and business conditions.




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Factors affecting consumer behaviour

Cultural Factors - Cultural factors exert the broadest and deepest influence on

consumer‘s buying behaviour. The marketers need to understand the role played by the

culture, subculture and social class.

Culture - The set of basic values, perceptions, wants and behaviour learned by a number

of societies from family and other important institution.

Sub culture - A group of people with shared value systems based on common life

experience and situations.

Social class - Relatively permanent and ordered divisions in a society whose members

share similar values, interests and behaviour.

Social Factors - A consumer‘s behavior also in influenced by social factors, such as the

consumer‘s small group, family and social roles and status.

Family - The family is the most important consumer buying organization in society and

it has been researched extensively. Marketers are interested.

Groups - Groups, which have social, economic, professional or religious relationships.A group consists of family members‘ friends, co-workers, classmates, teenagers, sports

group, etc. A consumer buys those goods, which his reference group buys.

Role and status - A role consists of the activities people are expected to perform

according to persons around them. Each role carries on status reflecting the general

esteem given to it by society.

Age and life-cycles state - People change the goals and services they buy over their life

times. Tastes in food, clothes, furniture and recreation are often age related.

Occupation - A person‘s occupation affects the goal and services bought. Blue-collar

workers tend to buy more rugged work clothes; where as white-collar workers buy more

business suits.




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Economic situation - A person‘s economic situation will affect product choice.

Marketers of income sensitive goods watch trends in personal income, saving and interest

rates.

Life style - An individual‘s pattern of living as expressed in his or her activities interests

and opinions.

Personality and self concept - A person‘s distinguishing psychological characteristics

that led to relatively consistent and lasting responses to his or her own environment.

Motivation - A need that is sufficiently pressing to direct the person to seek satisfaction

or there need.

Perception - The processes, by which people select, organized on and interpret

information to form a meaningful picture of the world.

Leaning - The buyer behavior is strongly influenced by learning. Learning simply means

change in behaviour of person arising from experience.




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CHAPTER II

DESIGN OF THE STUDY

Statement of the problem

In today‘s market situation, there is a very tough competition existing in soft

drinks industry. The two companies, which mainly competing each other are Coca Cola

and Pepsi, as these companies are known world wide through various medias of

advertisement.

The project has been titled ―A study on consumer buying behaviour towards soft

drinks in Bangalore metro and a comparison of leading brands.‖ This study attempts to

analyze and determine the various factors that influence the buying behaviour of

consumer towards soft drinks. This study is also an attempt to compare the leading

brands in the soft drink industry. And how the customers react to various attributes like

brand image, price, quality, taste, availability, packaging, advertisement, etc. of their

favorite soft drinks i.e., how the consumer perceives the various brands in the soft drink

industry.

Objective of the study

To determine the factors that led the consumer to use a particular brand of soft

drink

To determine which brand of soft drink is widely used in Bangalore metro.

A critical comparison of the leading brands, namely Coco cola and Pepsi

To analyze the various factors that influences the buying behaviour with respect

to soft drinks.

To evaluate the consumption pattern of consumers with respect to soft drinks.




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Scope of the research

The study is exclusively conducted on the soft drinks industry to analyze and obtain

insights into the consumer buying behavior towards soft drinks. It was carried out within

Bangalore city over a period of three weeks and also to compare the leading brands in the

soft drink industry. The research also encompasses the usage pattern exhibited by the

consumers.

Research methodology

I. Type of Research

The type of research adopted for the project is descriptive research. It refers tostudies those used to describe phenomena associated with a subject population or to

estimate proportions of the population that have certain characteristics. Descriptive

research basically means discovery of association among different variables.

II. Sources of Data

Primary Data - The main tool that has been used in data collection is

questionnaire that has been constructed for this purpose. A respondent was interviewed

and data was collected.

Secondary Data - Secondary data was collected from various books; journals

research papers from magazines and also the internet.

II. Sampling Plan

a) Type of sampling – nonrandom sampling has been administered in the

project which is arbitrary and subjective. Each member does not have a known nonzero

chance of being included. Moreover a multi stage area sampling technique was adopted,

where by the Bangalore city map was divided into few blocks which spread all over the

city.

b) Sample Size - A sample of 100 respondents was considered as sample size

for the research. The sample size is selected by considering characteristics of interest and




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objectives of the study. Between this 100 sample of respondents and representatives of

sex, income groups, occupation group, etc. were included.

III. Research Instrument

The main tool that has been used in data collection is questionnaire that has

been constructed for this purpose. Primary data was collected by means of questionnaire,

which was distributed to respondents of different age, sex, occupation, income group.

IV. Methodology of Data Collection

The survey was conducted by way of personal interview wherein the

researcher gave the respondent the questionnaire and initiated a two- way conversation toobtain information from the participant.

V. Plan of Analysis

a) Hypothesis Testing - By hypothesis, we mean a statement about the population

parameters. Hypothesis testing deals with a procedure, which accepts or rejects

the hypothesis. There are two types of hypothesis.

1. Null Hypothesis: - It states that there is no significant difference

between the sample value and population value. This means that

the observed difference is due to the random fluctuations. Ho

denotes the null hypothesis.

2. Alternate Hypothesis: - In case the null hypothesis is rejected, we

should have an alternate hypothesis to accept. Alternate hypothesis

is denoted by HA.

Level of significance - It is nothing but the probability of rejecting a true

hypothesis. It represents the level of risk; the experiment is ready to take

in rejecting a true hypothesis and is denoted by. 1 - gives the level of

confidence of the experiment in taking the decision. It is always preferable




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to keep the level of significance at low percentage. It means that we

should not reject a true hypothesis. represents the risk of accepting a

false hypothesis. 1 - is called the power of test.

Acceptance region - This represents the region within which the

calculated value of the statistics must lie to accept the null hypothesis. If

calculated value lies in this region then the null hypothesis will be

rejected.

b) Chi- square Test - It is a non- parametric test. It describes the magnitude of

discrepancy between observed value and expected value. Higher the value of Chi-

square

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, greater the discrepancy between the observed values from sample tosample. It is a statistic whose value is always positive and varies from zero to

infinity. It is the sum of difference between the expected value and observed

value.

This distribution is a limiting approximation of multinomial distribution

with as the mean and 2 (nu) as the variance of the distribution. The test

depends on the set of observed values and the degree of freedom (nu). Itis a continuous distribution, which can be applied to discrete random

variables.

Degree of freedom

It is the number of classes to which the values can be assigned arbitrarily

with out violating the restrictions or limitations placed. It is calculated

using the following formulae.

DOF = (r- 1) (c – 1) where r is the no: of rows

c is the no: of columns

DOF = (n-1), where n is the no: pairs of observed and expected values.




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Limitations of the Study

Descriptive study tends to get cumbersome and they seem to be more complex

then they appear.

In the project, nonrandom sampling has been used which is a non probability

sampling method; it therefore does not provide estimates of precision.

In the testing of hypothesis, Type I and Type II errors may be encountered. These

errors are refer to

When a Type I error (α) is committed, a true null hypothesis is rejected.

The level of α value is called the level of significance and is the

probability of rejecting the true null.

With a Type II error (β), one fails to reject a false null hypothesis.

Hypothesis testing places a greater emphasis on Type I than on Type II errors.

Operational definitions of concepts

Consumer: - An individual who purchase or has the capacity to purchase goods

and services offered for sale by marketing institutions in order to satisfy personal

or household needs wants or desire.

Consumer behavior: - Behavior that consumers display is searching for

purchasing, using and evaluating products, services and ideas, which they expect,

will satisfy their needs.

Brand: - A name term, symbol or design, or a combination of them which is

intended to identify the goods or services of one seller or group of sellers and to

differentiate them from those of the competitors.




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Brand Awareness: - The knowledge of the consumer about the different brands

of products available in the market.

Brand preference: - The likely fair or important which is consumer gives to

particular brand of the product.

Customer satisfaction: - The degree to which the buyer finds the results of the

transaction acceptable or person‘s feelings of pleasure or disappointment resulting

from comparing a product perceived performance is relation to his or her

expectations.

Level of Satisfaction: - The aggregate of the actual level of performance of the

various products attribute against the expectations.

Perception: - Perception is the process by which an individual selects, organizes

and interprets information inputs to create a meaningful picture of the world.

Market: - A market consists of all the potential customers sharing a particular

need or want who might be willing and able to engage in exchange to satisfy that

need or want.

Marketing: - Marketing is a social and managerial process by which individual

and groups obtain what they need and want through creating offering and

exchanging products of value with others.

Marketing Research: - It is defined by the American Marketing Association as

the function which links the consumer, customer and public to the marketer

through information – which is used to identify and define marketing

opportunities and problems, generate, refine and evaluate marketing action,

monitor marketing performance, and improve understanding of marketing as a

process.




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CHAPTER III

INDUSTRY AND COMPANY PROFILE

THE SOFT DRINKS INDUSTRY

Soft drinks have been described as making the ―most extensive dietary impact

of foreign corporations in the developed world‖. They are usually priced just within

the reach of the poorest in these countries and may represent, via their glossily advertised

images, symbols of an enviable Western lifestyle.

Because of the relative poverty of many people in the Third World, staple foods

may be neglected in preference to soft drinks. In 1969 it was reported that babies inZambia had become malnourished because their mothers fed them coke and Fanta,

believing it was the best thing they could give their children. Around the time 54% of the

seriously malnourished children admitted to the children‘s hospital at Ndola had

‗Fantababy‘ written on their progress charts. The Zambian government subsequently

banned Fanta advertisements ―because of their influence on the poor”.

A study at the Nutrition Institute in Rio de Janeiro found high levels of

consumption of Coke, Fanta and Pepsi in its survey of school children between 6-14

years old. All the children showed signs of vitamin deficiency whilst the poorest of them

also showed protein/calorie malnutrition.

A Mexican priest wrote, in 1974, that Mexican villagers believed soft drinks

should be consumed every day, leading to lower consumption of natural products such as

fruit. Some families were even seen to be selling their natural products in order to buy

soft drinks.

The spread of Coca-Cola and Pepsi Co operates is truly global. Coca-Cola

distributes its branded products in over 155 countries. In Mexico, Coca-Cola and Pepsi

Co control 77% of the soft drinks market, while in Brazil, Coca-Cola alone has 55% of

the market.




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Cola drinks usually contain about 10% sugars – some 13 lumps in a 330ml can.

Ribena contains approximately 15% sugars – 15 lumps in a 250ml carton. These

proportions seem the norm for most soft drinks (except of course the ‗diet‘ varieties).

The Saccharin often found in the ‗diet‘ varieties has to carry a health warning in

the U.S. as it has been linked to the development of bladder cancer. The Food

Commission undertook a survey in 1991 of soft drinks brands and food a number of

them, not just those labeled ‗diet drinks, contained saccharin as well as sugar. They

found this a worrying trend given that MAFF research in 1990 found 1 in 6 children

between the ages of two and five were consuming more than 2.5mg of saccharin per kg

of body weight, which was then the UK maximum acceptable daily intake (and is still

that of EC and WHO recommendations).

According to the soft drinks industry, 90 per cent of consumption is by the

middle and lower income groups and this is the basis of the industry‘s plea to the Finance

Ministry for a rationalization of excise duty.

Apparently, the aerated soft drinks industry in India is at a nascent stage with a

per capita consumption of less than eight bottles, the Federation of Indian Chambers of

Commerce and Industry (FICCI) said in its pre-budget memorandum. This stands lower

than that in the neighboring countries such as Pakistan, Sri Lanka, Thailand, Indonesia

and the Philippines.

The industry has sought a rationalization of excise duty to enable it to exploit its

potential. Its main grouse is that the Budget promise made four years ago on doing away

with special excise duty (SED) on all mass-consumption items was implemented, with

the exclusion of aerated soft drinks.

It points out that when cosmetics, refrigerators and videocassettes were granted

waiver of SED, aerated beverages, which accounted for 90 per cent consumption by the

middle and lower income segments, were not shown the same favour.

To validate its observations, the industry points out that aerated beverage was

capital and employment-intensive and supported various ancillary offshoots such as




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manufacturing and service units – PET bottles, crates and visi-coolers, retail, etc.

Elaborating further, the industry says that extra production of every one million cases

generates additional employment for 1,300 people in the economy. Against this

background it has sought removal of SED. The industry currently employs directly or

indirectly 1.5 lakh people, it claims.

Further, it points out high excise duty results in massive production of spurious

products and pass-offs manufactured in unlicensed facilities and inflicts loss of revenue

to the exchequer.

Global soft drinking growing by 5% a year

Soft drinks consumption worldwide is growing by around 5% a year, according

to global Soft Drinks 2002, total volume reached 412,000 million liters in 2001,

equivalent to 67.5 liters per person.

North America is the largest soft drinks market with a 27% volume share in 2001.

Carbonates are the biggest soft drinks sector with 45% of global volume.

Bottled water is the highest growth sector, rising by 10% in 2001 and accounting

for 53% of total soft drinks growth from 1996 to 2001.

The five fastest growing countries between 1996 and 2001 were from Asia, East

Europe and the Middle East.

It is important to note the advance of Asia, East Europe and other developing

markets, commented Zenith Research Director Gary Roethenbaugh. ―Thanks to highly

populous and rapidly emerging markets such as China and India, consumption in Asia is

projected to overtake that of North America in 2006.‖

The five fastest growing countries between 2001 and 2006 are all expected to

come from Asia.

Pakistan is predicted to have the highest percentage growth rate of all.




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India is expected to make sizeable volume gains, as affluence spreads to more of

its huge population.

Indonesia, China and Vietnam complete the top five for future growth.

We can anticipate that the overall market should bit 523,000 million liters in

2006. A continuing 5% growth rate compares favorable with at best 1% for hot drinks,

2% for milk and 3% for alcohol. ―Economic obstacles and climate fluctuations will, of

course, present numerous challenges, but the outlook for global soft drinks is as strong

today as it has ever been,‖

Global soft drinks growth, 1996-2001

M. East 60

E. Europe 49

Asia-Aus 48

L. America 32

Africa 29

W. Europe 19

N. America 15

Average 28

Evolution of Soft drinks

The history of America and Soft Drinks go Hand in Hand

A uniquely American industry, the manufacturing of soft drinks began in the

1830‘s. However, the evolution of soft drinks took place over a much longer time period.

The forerunners of soft drinks began more than 2,000 years ago when Hippocrates, the

‗Father of Medicine, ―first suspected that mineral waters could be beneficial to out well-

being. But Hippocrates did not envision drinking the effervescent mineral waters

bubbling from the earth‘s crust. Instead, the Greeks and Romans used them for bathing

and relaxation. More than a thousand years passed before mineral waters made the

transition from therapeutic bath to refreshing beverage.




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In America, the transition resulted from the discovery of the natural springs in

New York. Many legends and myths developed about the earth‘s mysterious waters,

believed to be cures for everything from arthritis to indigestion. The claims attracted

physicians and scientists who began studying the tiny bubbles fizzing from these waters.

Scientists eventually proclaimed the air being released as gas carbonium –

simple carbon dioxide. Soon afterwards they perfected a way of producing artificially

carbonated water in the laboratory. With that development, it was only a matter of time

before soft drinks made it into the hands of the America public.

By the 1830‘s, both artificial and natural mineral waters were considered healthy

and refreshing products in America. But pharmacists, believing they could improve upon

their curative properties, experimented with a multitude of ingredients from birch bark to

dandelions. And while no miracle cures developed, some very interesting flavors and

tastes were discovered. Ginger ale, root beer, sarsaparilla, lemon and strawberry were

among the most popular of the early flavors.

The soft drink industry was a seasonal business in the early days, operating

primarily during the summer months. Sales were limited by few outlets for the new

carbonated beverages, and by the consumer‘s restricted mobility.

For many years, America‘s pharmacists were the driving force behind the

refinement of soft drinks and many of the flavors and combinations. Their association

with chemistry and medicine made them ideally suited for this business, still part

pharmacology and part refreshment.

The local pharmacy was the center attraction in many American towns in the

mid-1800‘s. It was customary to gather around the new soda foundations and enjoy

one‘s favorite refreshment mixed on the spot. However, as the corner drugstore grew in

popularity, the soft drink bottling industry was taking shape.

Gradually, demand grew for soft drinks to be consumed in the home. Bottling

the product proved difficult at first, since pressure from the carbon dioxide forced corks

right out of the bottles. Clearly, if soft drinks were ever to be sold for consumption




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beyond the corner pharmacy, there would have to be a way to keep them corked.

Inventors worked for years to develop a solution, patenting some 1,500 different corks,

caps and lids for soft drinks bottles.

Then, in 1892, the ‗crown cap‘ was invented. Tiny in design, the crown

completely revolutionized the soft drink industry by preventing the escape of carbon

dioxide from bottled beverages. In fact, it was the dominant soft drink closure for more

than 70 years.

Soon the crown cap‘s success was being felt at the corner pharmacy. As home

consumption of soft drinks grew, demand at the corner drug store began to dwindle.

Many pharmacists, realizing the promising future of soft drinks, abandoned their trade to

become full-time bottlers. Others began stocking soft drinks in their stores. Horse drawn

wagons traveled America‘s streets, loaded with brand-name soft drinks and headed for

growing retail outlets.

While the crown cap helped lead the way to soft drinks in the home, it was not

until the 1920‘s that the trend took hold. The invention of ―Hom-Paks,‖ the first six-pack

cartons, made it more convenient to carry products back to the house. Their use resulted

in the increased availability and the growing popularity of soft drinks across America.

The appearance of the automobile heralded a new era for the soft drink industry.

Roadside stands appeared across the country. Service stations became major outlets for

bottled refreshment, and large motorized delivery trucks were better able to satisfy the

country‘s growing taste for liquid refreshment.

Automatic vending machines began to appear in the 1920‘s, once again

changing the business of soft drinks. Vending machines and fountain dispensers led the

way to the expansion of soft drinks to industrial outlets. Americans could now consume

the popular beverage at home or at work.

New technology helped soft drink bottlers meet growing consumer demand by

significantly increasing the products‘ availability, Traditional 6-ounce ―split‖ bottles




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grew to 8-ounce and then larger and larger containers. Today, with more than 2 million

soft drink vending machines in the U.S., refreshment is literally right around the corner.

The mushrooming demand for product resulted in the growth of the soft drink

industry, from the pharmacies into a national industry; Inventors of soft drinks spread

their products across America by opening a few strategically placed bottling facilities.

America by opening a few strategically placed bottling facilities through

franchise agreements. Eventually it became clear that supplying a growing nation‘s thirst

for soft drinks would require more than a few additional bottling plants. But until the

1980‘s, the industry was primarily one of manual operations. Glass bottles were blown

individually, while filing, sealing, mixing, and packaging were almost totally manual

operations. Expansion could not occur without a more mechanized process.

The changed between 1890 and 1910: New automated machinery was

developed, making the soft drink industry more efficient and productive. The number of

plants bottling soft drinks increased from 1,377 to 4,916, as sales soared.

The industrial age was in full swing, America‘s population was exploding and

soft drink demand was booming. Together, the soft drink industry and the nation entered

the era of mass production and national marketing.

New, modern machinery turned out uniform products and significantly increased

the production of soft drinks. By the time The Great Depression hit, carbonated

beverages already were established as part of the American way of life. Consumers were

unwilling to give up soft drinks – one of the small pleasures they could still afford to

enjoy.

The Depression led the way to the creation of innovative new soft drink brandsand containers, which continued during the 1940‘s and 50‘s.

Responding to consumer demand, the industry rolled out soft drinks in cans and

introduced diet beverages to the market. Carriers were developed for convenience and

ease in taking soft drinks from the store to the home.




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Together, America and its soft drink industry suffered hardships caused by

World War II. Shortages of cork, sugar and steel significantly impacted the

manufacturing process, but soft drinks continued to be available to the public. The soft

drink industry participated in scrap metal collection drives and made significant efforts to

conserve natural resources in order to support the war effort. Soft drinks were classified

as ―essential to soldier morale‖ by the U.S. War Department and both the soft drink

industry and federal government made every effort to provide troops with products.

When unable to ship soft drinks directly to the soldiers, the government sent machinery

and materials so they could be made on the spot.

Since that time, the country has experienced significant progress-a man on the

moon, color TV, computers and compact disc players. For the soft drink industry, it has

meant the development of new flavors, the sale of canned products in vending machines,

and the invention of Polyethlene Terephthalate (PET) bottles.

Soft drink companies have kept pace with the nation‘s endless thirst for

refreshment. While many things have changed throughout the years, soft drinks continue

to be America‘s beverage of choice. Soft drinks are a good part of America.

Soft drinks industry in India

Introduction

Soft drink market size of FinancialYear2002 was around 270 million. cases

(6480 million bottles). The market witnessed 5-6% growth in the early ‗90s. Presently

the market growth has growth rate of 7-8% per annum compared to 22% growth rate in

the previous year. The market size for FinancialYear2004 is expected to be 7000 million

bottles.

Soft drink production area

The market preference is highly regional based. While Cola drinks have main

markets in metro cities and northern cities and northern states of UP, Punjab, Haryana

etc. Orange flavored drinks are popular in southern states. Sodas too are sold largely in




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southern states besides sale through bars. Western markets have preference towards

mango-flavored drinks. Diet coke presently constitutes just 0.7% of the total carbonated

beverage market.

Growth promotional activities

The government has adopted liberalized policies for the soft drink trade to give

the industry a boast and promote the Indian brands internationally. Although the import

and manufacture of international brands like Pepsi and Coke is enhanced in India the

local brands are being stabilized by advertisements, good quality and low cost.

The soft drinks market till early 1990s was in hands of domestic players like

Campa, Thumps Up, Limca etc. but with opening up of economy and coming of MNC

players Pepsi and Coke the market has come totally under their control.

The distribution network of Coca Cola had 6.5 lakhs outlets across the country

in FinancialYear2002, which the company is planning to increase to 8 lakhs by

FinancialYear2003. On the other hand Pepsi Company‘s distribution network had 6 lakh

outlets across the country during FinancialYear2002, which it is planning to increase to

7.5 lakh by FinancialYear2003.

Types

Soft drinks are available in glass bottles, aluminum cans and Pet bottles for

home consumption. Fountains also dispense them in disposable containers Non-alcoholic

soft drink beverage market can be divided into fruit drinks and soft drinks and soft drinks.

Soft drinks can be further divided into carbonated and on-carbonated drinks. Cola,

Lemon and Oranges are carbonated drinks while mango drinks come under non-

carbonated category.




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COCA COLA

Company profile

The coca cola company is the global soft drink industry leader, with world head

quarters in Atlanta, Georgia. The company and its subsidiaries employ nearly 30,000

people around the world. Syrups, concentrates and beverage bases for coca cola, the

company‘s flagship brand, and over 160 other company soft drink brands are

manufactured and sold by the coca cola company and its subsidiaries in nearly 200

countries around the world. Infact, approximately 70 percent of company volume and 80

percent of company profit come from outside the United States. The products of the coca

cola company touch lives everywhere. Their core brands have made an impact around the

world, brands such as Fanta, Sprite, and of course, coca cola are available and recognized

in many countries. Each of their brands is distributed in one or more countries and is

tailored to the culture and tastes of those consumers. So wherever you are, you are sure to

find a coca cola product to enjoy.

The story begins in Atlanta, Georgia on May 8, 1886, when a pharmacist called

Dr John Smith Pemberton first mixed coca cola in his back yard. The formula, which was

made from carbonated water, cane sugar syrup, caffeine, extracts of kola nuts and cola

leaves, was brought to the nearby Jacobs pharmacy where it made its debut as a soft drink

the same day, selling for only 5 cents. His bookkeeper named this drink ―coca cola‖ after

the first two ingredients. And the same distinctive script he wrote it in is the same logo

they use to this day.

In January 1893 coca cola was registered with the US patent office. Later on in

1915 the root glass company created the famous contour glass bottle for coca cola in1915.in 1917 coca cola was found to be the world‘s most recognized trademar k with a

record of 3 million Cokes sold per day. Unfortunately John Pemberton fell ill, and did not

live to see his product‘s success.




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Early growth

In 1893 Candler registered coca cola as a patented trademark. He also

responded to growing concerns over the dangers of cocaine by reducing the amount of

coca in the drink to a trace. However, he kept some coca extract in coca cola so the name

would accurately describe the drink. Candler only had a patent on the name, and not the

drink syrup that is, the drink‘s base, containing all the ingredients minus the carbonated

water. He figured that keeping the coca in his formula would legally allow the company

to distinguish its drink from imitations. Other companies also produced soda drinks made

with kola nut extracts. in particular, the Pepsi cola company and its cola of the same

name would become coca cola‘s major competitor over the next few decades.

Candler also spent more than $11,000 on his first massive advertising campaign

in 1892.the coca cola logo appeared across the country, painted as a mural on walls,

displayed on posters and soda fountains where the drink was served. And imprinted on

widely marketed, common household items, such as calendars and drinking glasses. In

addition, Candler was the first person ever to use coupons to gain customers for a

product. He distributed flyers offering free soda fountain glasses of coca cola to people

visiting his drugstore.

In 1894 the coca cola company opened its first coke syrup production plant

outside of Atlanta, in Dallas, Texas. That same year a candy store owner in Vicksburg,

Mississippi, installed bottling machines and produced the first bottled coke. It had

previously been sold only at soda fountains. By 1895 the drink was sold in all American

states and territories.

In 1899 lawyers Benjamin Thomas and Joseph whitehead of Chattanooga,

Tennessee, bought the exclusive rights to distribute coke syrup to bottlers throughout

most of the country for only one dollar. At the same time, Candler saw little profit in

bottling, and was more than willing to give up that part of the business.




22

In 1915 the root glass company created a contour glass bottle for coke, its design

based on the curvature of a coca cola bean. This bottle design became a coke trademark

worldwide. The same year, Candler retired from the company. In 1919 Candler family

sold coca cola to businessman Ernest Woodruff of Columbus, Georgia, for $25 million.

War time developments

During world war2 (1939 —1945), Woodruff also boosted coke‘s popular image

in the United States by pledging that his company would provide coke to every U S

soldier. The company did not limit itself, however, to only doing business that would

increase its success in America. In the period leading up to the war, between 1930 and

1936,it had set up a division of the company in Germany, and it continued that venture

during the war. It recreated its image as a German company and allowed the Germans to

produce all but two, secret, coca cola ingredients in their own factories.

In 1941 the German company‘s president, Maqx Keith, developed Fanta orange

soda using orange flavoring and all the German – made Coke ingredients. The coca cola

company‘s wartime efforts helped it expand its global market, often with the economic

support of the U.S government. By the end of the war in 1945, it had established 64

overseas bottling plants. That same year the company registered a patent on coca cola‘s popular nickname, Coke.

Post war growth

In 1955 Robert Woodruff retired as the Coca Cola company‘s president. Candler

and Woodruff are remembered as the two most important figures in the company‘s early

growth, both for their contribution to the company and their considerable fortunes

donated to the city of Atlanta. After Woodruf f‘s departure, the company began to

diversify by producing new products, acquiring new business, and entering new

international markets. In 1960 the Coca Cola Company purchased the minute maid

corporation, producer of fruit juices, and began offering coke in canes. Between 1960 and

1963 it also launched for new soft drinks in the United States. Fanta an orange soda,

Sprite, a lemon lime soda etc. in 1964 the company acquired the Duncan foods




23

corporation. In 1967 it created the coco cola foods division by merging its Duncan and

Minute maid operations.

In the late 1960‘s, coca cola faced difficulties in some of its foreign markets.

When the company built a bottling plant in Israel at the outset of of the Arab-Israeli War,

the government of all Arab league nations banned the production and sale of Coke. A

year later the company withdrew from its market in India when Indian government

requested that Coca cola reduce its equity in joint ventures to 40 percent. The company

refused to relinquish so much control over those operations. In 1977 Coca cola began

packaging Coke and other drinks in two liters plastic bottles. In 1982 the company

introduced Diet Coke, which soon became the best selling diet soft drink in the world.

In 1982 coca cola purchased the motion-picture company Columbia picture

industries, Inc, also known as Tri-Star Pictures, for almost $ 700 million. Two years later,

the company sold off its Columbia holdings and other media acquisitions to Sony

Corporation for over $1.5 billion.

Recent developments

In 1986 the Coca Cola Company consolidated all of its non franchised U.S bottling operations as Coca Cola enterprises, Ink. The new company began acquiring

independent bottling companies, a venture that grew in to the world‘s largest bottler of

soft drinks by 1988.While Coca-Cola Enterprises distributes over half of all Coca Cola

products in the united states, small franchise businesses continue to bottle, can, and

distribute the company‘s drinks worldwide.

In 1987 the Coca Cola Company was listed in the prestigious Dow Jones

industrial Average index of stock market performance. Its stock is traded on the New

York stock exchange. Coca Cola and Pepsi Company products occupied nine of the top

ten spots in the U.S. At present Coca Cola ranked first in soft drink sales, and the

company earned almost 80 percent of its profit from international sales.




24

PEPSI COLA COMPANY

Company profile

Pepsi cola North America, headquartered in purchase, New York, is the

refreshment beverage unit of Pepsi Company Beverages and foods North America; a

division of Pepsi Company, Inc. Pepsi company beverages and foods North America also

comprises Pepsi Company‘s Tropicana, Gatorade and Quaker Foods businesses in the

United States and Canada.

Pepsi cola North America‘s carbonated soft drinks, including: Pepsi, Diet Pepsi,

Pepsi Twist, Mountain Dew, Mountain Dew Code Red, Sierra mist, and Mug Root Beer

account for nearly one- third of total soft drink sales in the United States. Pepsi Cola

North America‘s non carbonated beverage portfolio includes Aquafina, which is the

number one brand of bottled water in the United States, The company also makes and

markets North America‘s best selling, ready to drink iced teas and coffees via joint

ventures with Lipton and Starbucks, respectively.

Pepsi company, Inc is one of the World‘s largest food and beverage companies.

The company‘s principal business includes:

Frito-lay snacks

Pepsi cola beverages

Gatorade sports drinks

Tropicana juices

Quaker foods

Brief overview of the companyPepsi company, Inc is a diversified consumer products company with 3 major

lines of business:




25

1. Beverages (Pepsi cola):- It is Pepsi‘s oldest and largest business. Includes drinks

like Pepsi, Diet Pepsi, Mountain dew, slice, mug, 7 up, etc-available in 194

countries.

2. Snack foods:-It includes the famous Frito-Lay brand in the United States and

other international brands- (example Smith Crisps Ltd. in UK) - available in 40

countries.

3. Restaurants:-Includes leading brands like pizza Hut, Taco Bell and KfC

(operating in 94 countries) and some relatively lesser known ones-

4. California Pizza kitchen, Chevy‘s Mexican Restaurants, Hot-n-Now mainly in the

U.S.

Pepsi Cola Company was founded in 1903 when Caleb D Braham, a pharmacist,

started to market his beverage invention in North Carolina. Today, Pepsi cola is the

second largest soft drink producer in the world. Also, it has been ranked 10-th most

recognized brand name in the world.

Pepsi Co, Inc was founded in 1965 through the merger of Pepsi-cola Company

and Frito-lay. Tropicana was acquired in 1998.in 2001, Pepsi Company merged with the

Quaker Oats Company, creating the world‘s fifth-largest food and beverage company,

with 15 brands-each generating more than $1 billion in annual retail sales. Pepsi

Company‘s success is the result of superior products, high standards of performance,

distinctive competitive strategies and the high level of integrity of their people.

Pepsi Company had been in the Indian market during the mid-1950s but pulled

out because of the lack of profitability. It re-entered in 1990 by negotiating a joint venture

agreement with Tata industries, India‘s largest private company and Government owned

Punjab Agro industries, realizing the rapidly growing incomes of Indian consumers.

Pepsi‘s decision to enter the Indian market was very wise indeed. The company today

enjoys a foothold of the Indian market and its market share surpasses its nearest rival-

Coca Cola. The Indian soft drink market has been growing rapidly-from a billion in 1977

to about 5 billion bottles in 2003.Another thing, which needs not to be forgotten, is that




26

India‘s middle class is much larger than china. Further more, many observers have

predicted that India will eventually become an economic giant, thus growing incomes

should support more sales.

Initially, Pepsi Company had to accept some limitations:

Limit ownership to 39.9 percentages; place the local ―Lehar‖ logo with its logo and to

export 75 percentage of its concentrate among others. But later, with liberalization of

FDI, these very limitations became Pepsi company‘s strengths, being the very first to be

in the Indian market, much to the dismay of Coca-Cola.




27

CHAPTER IV

ANALYSIS AND INTERPRETATION

Hypothesis

Null Hypothesis: Ho: People buy soft drinks not only because of its attributes.

Alternate Hypothesis: HA: People buy soft drinks because of its attributes.

Attributes Frequency (x) (x-x) X-X)2

Quality and Taste 54 39.7 1576.09

Price 12 -2.3 5.29

Brand Image 20 5.7 32.49

Advertisement 6 -8.3 68.89

Influence of celebrities 5 -9.3 86.49

Influence of friends relatives etc 1 -13.3 176.89

Quantity 2 -12.3 151.29

Total 100 2097.43

Here number of attributes, n = 7

Calculation of mean:

X = x/n = 100/7 = 14.3

Calculation of variance

n2 = 1/n X-X)2




28

Test statistic

cal) = [ X-X)2

] / n2

= 2097.43/299.63

= 7

Degree of freedom

D.O.F = n-1 = 7-1 = 6

Table value

At 5% level of significance with 6 degree of freedom, the table value is

(tab) = 12.592

Conclusion

Since (cal) is less than (tab). The null hypothesis Ho is accepted. There fore we

can conclude that people buy soft drinks not only because of its attributes but also it is

influenced by other factors such as income, occupation, age, climate, occasion and so on.




29

1. Preference of people when they get thirsty

Table 1: Preference of people when they get thirsty Particulars Frequency Percentage

Mineral water 24 24%

Branded soft drinks 44 44%

Fresh juice 22 22%

Butter milk 1 1%

Packed juice 1 1%

Others 8 8%

Total 100 100%

Graph 1

Interpretation:

The above table shows that out of 100 respondents, most of them used to consume

branded soft drinks. Out of 100, 44 used to consume branded soft drinks, 24 mineral

water, 22 fresh juices, one respondent each buttermilk and packed juice and others

constitute 8%.




30

2. Favorite soft drink company

Table 2: Favorite company in branded soft drinks

Particulars Frequency Percentage

Coca – Cola 59 59%

Pepsi 41 41%

Total 100 100%

Graph 2

Interpretation:

Out of 100 respondents, 59 people‘s favorite company is Coca Cola while 41 prefers

Pepsi Co.




31

3. Reasons for consumption of soft drinks

Table 3: Showing the reasons for consumption of soft drinks


Quench thirst 24 24%

Suits lifestyle & status 12 12%

Taste 30 30%

Fun sake 14 14%

Influence of celebrities 6 6%

Influence of advertisement 14 14%

Total 100 100%

Graph 3

Quench

thirst

Suits

lifestyle

and status

Taste Funsake Influence

of

celebrites

Influence

of ads

S10

5

10

15

20

25

30

Reason for selecting soft drinks

Series1

Interpretation:

Out of 100 respondents, 24 prefers soft drinks to quench thirst, 12 prefer due to life style

and status, 30 due to taste, 14 due to fun sake and influence of advertisement and six due

to influence of celebrities.




32

4. Ranking of attributes in the soft drink

Table 4: Showing ranking of various attributes

Attributes Frequency Percentage

1 2 3 4 5 6 7 Total 1 2 3 4 5 6 7 Total

Brand image 20 24 23 20 4 4 5 100 20 24 23 20 4 4 5 100

Price 12 32 25 9 3 15 4 100 12 32 25 9 3 15 4 100

Quality& taste 54 18 12 8 8 0 0 100 54 18 12 8 8 0 0 100

Advertisement 6 3 13 14 25 33 6 100 6 3 13 14 25 33 6 100

Influence of celebrities 5 7 2 21 25 15 25 100 5 7 2 21 25 15 25 100

Reference byfriends

1 4 6 9 24 17 39 100 1 4 6 9 24 17 39 100

Quantity 2 12 19 19 11 16 21 100 2 12 19 19 11 16 21 100

Graph 4.1

Various attributes respondents looking for

0

10

20

30

40

50

60

1 2 3 4 5 6 7

Ranking

N o . o

f r e s p o n d e n t

Brand image

Price

Quality and taste




33

Graph 4.2

Graph showing attributes respondents looking for

0

5

10

15

20

25

30

35

40

45

1 2 3 4 5 6 7

Ranking

N o . o f r e

s p o n d e n t

Advertisement

Influence of celebrities

Reference by friends

Quantity

Interpretation:

Out of 100 respondents, most of them ranked Quality & Taste as first. 54 out of 100

suggests they are looking for quality & taste while purchasing a soft drink. 20 prefer

brand image, 12 prices, six advertisements, five due to influence of celebrities, one due to

friends and remaining two due to quantity.




34

5. Favourite brand

Table 5: Favorite brand of respondents


Coca cola 31 31%

Pepsi 19 19%

Thums up 14 14%

Sprite 9 9%

Mirinda 7 7%

Maza 6 6%

Slice 4 4%

Dew 4 4%

Fanta 4 4%7 up 2 2%

Limca 0 0

Total 100 100%

Graph 5

Graph showing favourite brand of customers

0

5

10

15

20

25

30

35

Coca-

cola

Fanta Limca Maza Thums-

up

Sp rit e Pepsi M irinda Slice 7up Dew

Series1

Interpretation:

Most of customers selected Coca-cola as their favorite brand. It comes first with 31 and

next comes Pepsi with 19, Thums up with 14, Sprite with 9, Mirinda with 7, Maza with 6,

Slice with 4, Dew with 4, Fanta with 4, 7 up with 2 and Limca 0.




35

6. Duration of consumption of soft drink

Table 6: Duration of the consumption of a particular brand

Particulars Below one year 1-5 years 5 and above Total

Coca-cola 1 16 14 31

7 up 0 1 1 2

Fanta 1 2 1 4

Thums up 0 4 10 14

Pepsi 0 8 11 19

Mirinda 1 6 0 7

Dew 4 0 0 4

Maza 1 5 0 6

Sprite 0 9 0 9

Slice 0 4 0 4

Total 8 55 37 100

Graph 6

Duration of consumption

0

2

4

6

8

10

12

14

16

18

Coca-

cola

Fanta Maza Thums-

up

Sprite Pepsi Mir inda Slice 7up Dew

Below one year

1-5 years

5 and above

Interpretation:

The above table shows that 8% of respondents are consuming their favourite brand for

less then a year, 55% for 1-5 years and 37% more than 5 years.




36

7. Frequency of consumption

Table 7: Frequency of consumption

Brand Regularly Occasionally Total

Coca-cola 19 12 317 up 2 0 2

Fanta 1 3 4

Thums up 9 5 14

Pepsi 14 5 19

Mirinda 3 4 7

Dew 4 0 4

Maza 1 5 6

Sprite 2 7 9

Slice 1 3 4

Total 56 44 100

Graph 7

Graph showing frequency of consumption

0

2

4

6

8

10

12

14

16

1820

Coca-cola

Fanta Maza Thums-

up

Sprite Pepsi Mirinda Slice 7up Dew

Regularly

Occasionally

Interpretation:

The 56% of respondents are consuming their favourite brand regularly while 44% are

consuming occasionally.




37

8. Expectation of improvement

Table 8 : Expectation of improvement

Brand Yes No Total

Coca-cola 11 20 31

7 up 0 2 2

Fanta 0 4 4

Thums up 4 10 14

Pepsi 5 14 19

Mirinda 0 7 7

Dew 2 2 4

Maza 1 5 6

Sprite 4 5 9

Slice 1 3 4

Total 28 72 100

Graph 8

Improvement expectation by respondents

0

5

10

15

20

25

Coca-

cola

Fanta Maza Thums-

up

Sprite Peps i Mirinda Slice 7up Dew

Yes

No

Interpretation:

Out of 100 respondents, 28% are expecting improvement in their favourite brand

while 72% are satisfied with the existing one.




38

9. Quantity of purchase

Table 9: Quantity of purchase

Particulars 200ml 300ml 500ml 2ltr Total

Coca-cola 13 7 7 4 317 up 2 0 0 0 2

Fanta 0 3 1 0 4

Thums up 8 5 1 0 14

Pepsi 9 4 2 4 19

Mirinda 2 0 5 4 19

Dew 4 0 0 0 4

Maza 0 6 0 0 6

Sprite 3 2 3 1 9

Slice 0 4 0 0 4

Total 41 31 19 13 100

Graph 9

Quantity respondents us ed to purchase

0

2

4

6

8

10

12

14

Coca-cola Fant a M aza Thums-up Sprit e Pepsi M irinda Slice 7up Dew

200ml

300ml

500ml

2ltr

Interpretation:

The above shows that 41% of respondents purchase 200ml bottle of their favourite

brand, while 31% used to purchase 300ml, 19 % 500ml bottle and only 13% 2ltr

bottle.




39

10. Occasions of more purchase

Table 10: Occasions of more purchase

Particulars Frequency

Marriage 11

Kitty party 21

Celebrations 47

Sports events 16

Others 5

Total 100

Graph 10

Occasions of purchase

0

5

10

15

20

25

30

35

40

45

50

Marriage Kitty party Celebrations Sports events Others

Series1

Interpretations:

The above shows that respondents purchase more during celebrations, next comes kitty

party and finally sports event. Remaining 11 purchase during marriage occasion and

remaining five constitutes others.




40

11&12. Rating of attributes for Coca Cola

Table 11.1: Rating of attributes for Coca- ColaAttribute Price Reasonable

Price 7 24

Graph 11.1

Table 12.1: Rating of attributes other then price and quality

Excellent Good Average Poor

Brand image 20 11 0 0

Quality &

Taste

8 22 1 0

Packaging 9 16 6 0

Availability 18 12 1 0

Advertisement 20 11 0 0




41

Graph 12.1

Graph showing rating of Coca-cola on various attributes

0

5

10

15

20

25

Brand image Quality & Taste Packaging Availabilty Advertisement

Excellent

Good

Average

Interpretation:

While rating attributes of Coca-cola 7 have ranked it has cheap and 24 reasonable.

For Brand image 20 of the respondent have rated it as excellent and 11 rated it

good. Quality & Taste and Packaging most of them have rated it as good. While

majority have rated availability and advertisement as excellent.




42

Rating of attributes for Pepsi

Table 11.2: Rating of attributes of Pepsi

Attributes Cheap Reasonable

Price 6 13

Graph 11.2




Quality &

Taste

13 6 0 0

Packaging 7 9 3 0






43

Graph 12.2

Graph showing rating of Pepsi on various attributes

0

2

4

6

8

10

12

14

Brand image Quality & Taste Packaging Availability Advertisement

Excellent

Good

Average

Interpretation:

Majority of respondents rated the price of Pepsi as reasonable i.e. 13.most of them rated

brand image, Quality and Taste, availability and advertisement as excellent. Regarding

packaging most of them rated it as good.




44

Rating of attributes for Thums Up

Table 11.3: Rating of attributes of Thums up

Attributes Cheap Reasonable

Price 5 9

Graph 11.3




Quality &

Taste

3 11 0 0

Packaging 2 10 2 0






45

Graph 12.3

Graph showing rating of Thums-up on various attributes

0

2

4

6

8

10

12

Brand image Quality & Taste Packaging Availabilty Advertisement

Excellent

Good

Average

Interpretation:

Regarding price attribute most of them rated it as reasonable. Other attributes include

brand image, quality & taste and packaging are rated as good by majority of

respondents. Advertisement and availability are rated as excellent by most of them




46

13. Brand loyalty of consumers

Table 13: Brand loyalty of consumers

Coca

cola

Fanta Maaza Thums

up

Sprite Pepsi Miranda Slice7up Dew Total

Yes 6 1 1 0 4 4 4 1 1 1 23

No 25 3 5 14 5 15 3 3 1 3 77

Total 31 4 6 14 9 19 7 4 2 4

Graph 13

Graph showing Brand loyalty of respondents

0

5

10

15

20

25

30

Coca-

cola

Fanta Maza Thums-

up

Sprite Peps i Mirinda Slice 7up Dew

Yes

No

Interpretation:

Among the 100 respondents 77 percentages of respondents were loyal to their favorite

brand, 23 percentages may change their brand when they offered any kind of reductions.

The consumers of Thums up were very loyal to that particular brand.




47

14. Influencers of buying decision

Table 14: Influencers of buying decision

Influencers Frequency Percentage

Friends & peers 46 46

Family 18 18

Neighbors 4 4

Celebrities 17 17

Nobody 15 15

Total 100 100

Graph 14

Graph showing influencers of buying decision

0

5

10

15

20

25

30

35

40

45

50

Friends and

Peers

Family Neighbours Celebrities Nobody

Series1

Interpretation:

Most of the consumers influenced by friend and family influences peers regarding the

purchase of a particular brand of soft drink.18 percentage of respondents, 17 percentage

were influenced by celebrities, then 15 percentage of the respondents were not been

influenced by anybody.




48

15. Effective media of advertising

Table 15: Effective media of advertising

Media Frequency PercentageTelevision 60 60

Film slides 8 8

Radio 2 2

News papers 9 9

Hoardings 6 6

Magazines 8 8

Internet 7 7

Total 100 100

Graph 15

Graph showing effective media of advertisement

0

10

20

30

40

50

60

70

TV Filmslides Radio New spaper Hoarding Magazines Internet

Series1

Interpretation:

Among 100 respondents 60 percentage of the respondents mentioned that television is an

effective media of advertisement, 9 percentages prefer newspaper and remaining 31

percentages prefer film slides, magazines, internet and radio as effective media of

advertisement.




49

16. Favourite advertisement

Table 16: Favourite advertisement

Brand No of respondents Percentage

Coca Cola 40 40

Pepsi 30 30Sprite 4 4

Thums Up 12 12

Mirinda 9 9

Dew 5 5

Total 100 100

Graph 16

Graph showing favourite advertisements

0

5

10

15

20

25

30

35

40

45

Coca-cola Pepsi Sprite Thums-up Mirinda Dew

Series1

Interpretation:

40 percentage of the respondent‘s favorite advertisement regarding soft drinks are that of

Coca Cola.30 percentage of the respondents like the advertisement of Pepsi, 12

percentages like Thums Up and remaining likes the advertisements of Mirinda, Dew andSprite.




50

17. Is price war unethical

Table 17: Is price war unethical

Response No of respondents Percentage

YES 59 59

NO 41 41total 100 100

Graph 17

Interpretation:

Among 100 respondents 59 percentage of the respondents mentioned that attacking each

other through advertisement is unethical, and remaining 41 percentages felt that it is not.




51

CHAPTER V

SUMMARY OF FINDINGS

Stated below are the findings from the collected data

- When people get thirsty 44% of the respondents prefer branded soft drinks, 24%

prefer mineral water 22% prefer fresh juice and remaining 10% prefer butter milk,

packed juice, pure water, etc.

- 59% of the respondent‘s favorite company regarding soft drinks is Coca Cola and

remaining 41% of the respondents prefer Pepsi.

- 30% of the respondents go for soft drinks because of its taste, 24% have soft

drinks to quench thirst. 20% of the respondents are influenced by advertisement

and celebrities. 14% of the respondents have soft drinks for fun sake and 12% of

the respondents think it suits their lifestyle and status.

- While purchasing a soft drink 54% of the respondents prefer quality and taste

first. 20% of the respondents consider brand image. 12% of the respondents first

consider the price. 12% of the respondents look into the advertisement; influenceof celebrities etc. And only 2% of the respondents consider quality first.

- Out of 100 respondents 55% of respondents consume their favorite brand between

1 to 5 years. 37% of the respondents consume their favorite brand for 5 and

above years and remaining 8% of the respondents consume a particular brand

below one year.

- Among 100 respondents 56% of the respondents consume their favorite brand

frequently and where as 44% of the respondents consuming their favorite brand

occasionally.

-




52

- 28% of the respondents expect some improvements in their favorite brand but

72% of the respondents do not expect any improvement in their favorite brand.

- 41% of the respondents prefer 20ml quantity bottle of their soft drink. 31% prefer

300ml, 19% prefer 500ml and remaining 9% of the respondents prefer 21 liter

bottle.

- Among 100 respondents 47% of respondents purchase more quantity of soft

drinks on the occasion of celebrations. 21% purchase more on the occasion of

Kitty party, 16% of respondent‘s purchase more for sports events & remaining

16% of respondents purchase more on the occasion of marriage and other functions.

- It has been observed that many of them are loyal to their favorite brand of soft

drinks which constitute 77% and the remaining 23% are not loyal and have the

tendency to switch to other brands depending on taste and offers prevailing in the

market.

- Friends and peers, 46%, have a very strong influence on the buying decision 18%

are influenced by family, 17% by celebrities.15% of the respondent however

claim to be independent in making their purchase decision.

- It has been found that 60% of buyers opt for T.V as media for advertisement, 9%

prefer news papers and film slides. Magazine contribute 16%, internet 7% and the

rest have a preference for hoardings and radio.

- Many of the respondents feel that attacking each other through advertisement by

is unethical.




53

Coca Cola

- Among 31 consumers of Coca Cola 23% of respondent‘s rate its price as cheap as

77% of respondents rated its price as reasonable.

- Among 31 consumers 65% of respondents rated its brand image and

advertisement as excellent and 35% of respondents rated its brand image and

advertisement as good.

- Among 31 consumers 26% of respondents rated its quality and taste as excellent,

71% respondents rated as good and 3% respondents rated the attribute quality and

taste as average.

Pepsi

- Among 19 consumers, out of 100 respondents, 32% of respondents rated its price

as cheap and 68% of respondents rated it as reasonable.

- Among 19 consumers of Pepsi 53% of respondents rated its brand images are

excellent and remaining 47% of respondents rated its brand image as good.

- Among 19 consumers of Pepsi, 68% of respondents rated its quality and taste as

excellent whereas 32% of respondents rated it as good.

Thump UP

- Among 14 consumers of Thums Up, 36% of respondents rated its price as cheap

where as 64% of respondents rated it as reasonable.

- Among 14 consumers of Thums Up 29% of respondents rated its brand image as

excellent whereas 71% rated it as good.

- Among 14 consumers of Thumps Up, 21% of respondents rated its quality and

taste as excellent where as 79% of respondents rated it as good.




54

SUGGESTIONS & RECOMMENDATIONS

Based on the analysis and the views of respondents we can make the following

suggestions: -

- In today‘s competitive market the various soft drink companies should maintain

and give priority to quality and taste of the product which is the primary

consideration that customers sort while purchasing a soft drink.

- 90% of consumption is by the middle and lower income groups so various

strategies can be developed to satisfy this particular income groups.

- People buy more quantity of soft drinks usually on occasions like celebrations.Providing price discounts, lucky draws to attract more customers during such

occasions can increase the volume of sales.

- Celebrities def initely influence the consumer‘s buying behavior towards soft

drinks. Thus using celebrities in advertisements invariably boosts up sales.

- Packaging is another important factor that influences the success or failure of a

brand, therefore bottles should be made colorful and attractive.

- In India the market preference is highly regional based. While cola drinks have

been favoured in markets which are situated in metro cities and northern states of

UP, Punjab, Haryana, etc. Orange flavored drinks are popular in southern states.

Western markets have preference for mango-flavored drinks. So the soft drinks

companies should adopt different marketing strategies for different segments.

- Soft drinks companies should concentrate on distribution channel and should

provide various kinds of attractive gifts, discounts, etc. to the retailers, so that they

promote a particular brand.




CONCLUSION

According to the soft drinks industry, 90 per cent of consumption is by the

middle and lower income groups. Apparently, the aerated soft drinks industry in India is

at a nascent stage with a per capita consumption of less than eight bottles. The soft drink

industry was a seasonal business in the early days, operating primarily during the summer

months. Sales were limited by few outlets for the new carbonated beverages, and by the

consumer‘s restricted mobility.

But today, the scenario is different. Sales have reached magnanimous heights.

There are but a few of the complex mix of factors that have made the city's soft drink

consumption what it is today. The immediate term outlook appears good; one can look

forward to the future of soft drinks market in Bangalore with optimism, so long as the

present encouraging trends are nurtured and maintained

soft drinks project report

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