Acknowledgements
As we complete this project we praise God the Almighty Father for giving us mental strength and good health, which we consider very important for our successful completion.
We thank our director Rev. Fr. Basani Prakash for allowing us to take up a useful project in an industrial establishment so that we may gain first hand experience.
We sincerely thank our respected principal, Mr. R. L. Murthy for his encouragement and for recommending us for the project.
We express our gratitude to our external guide Mr. …………… In a special way for readily accepting our request for doing this project at his esteemed organization and assigning a very useful and challenging project. He has taken special interest in supervising our project and evaluating our work from time to time. We also thank him for allowing us to freely use the company resources.
We thank Mr. Kalyan Reddy, Lecturer CJITS, for accepting to be our internal guide and supporting all the way. He took pains for understanding our project and suggested ways to improve the project. His encouragement and guidance are invaluable.
We thank our Head of the Department Mrs. Uma N. Dulharre, for accepting our project and organizing internal seminars for our project. Her deadlines were instrumental for the timely completion of the project.
We thank Mr. M. Vijay Chandra Rao, Software Engineer , Wipro Technologies for evaluating us by assigning a mini-project prior to the actual project, which helped us gain self-confidence and team spirit.
We also thank the entire faculty and students at CJITS who participated in the project seminars and indirectly helped us by the way of their encouragement and constructive criticism.
Finally we acknowledge the support and encouragement we received from our family members without which the project work might not have been so smooth.
Hyderabad Beverages Private Limited Regd. Off. : 105, 2nd Floor, E – Block, Surya Towers, S.P.Road, Secunderabad. – 500 003 : 26326222 (6 lines) Fax: 040 – 7894188
Dt: 26-04-2003
TO WHOM SO EVER IT MAY CONCERN
This is to certify that K. RAMESH, is a bonafide student of the Aurora School Of Business Management, Chikkadapally, Hyderabad. He has completed his project work titled “ Consumer Perception on Soft Drinks with special reference to PEPSI Co. ” under my
guidance successfully through Hyderabad Beverages Pvt. Ltd., in our organization from 15-03-2002 to 25-04-2003. He is found to be very dynamic and hardworking, we wish him a bright future and success.
(K.V.KISHORE) G.M. Sales & Marketing.
Tabl e
of
Contents
1. ABSTRACT OF THE STUDY
1
2. INTRODUCTION TO SOFT DRINK INDUSTRY
4
3. PROFILE OF HYDERABAD BEVERAGES (P) Ltd.
15
4. AN OVERVIEW OF CONSUMER BUYING BEHAVIOUR
19
5. OBJECTIVE OF THE STUDY
30
6. RESEARCH METHODOLOGY
31
7. CONCLUSIONS
32
8. SUGGESTIONS
34
9. LIMITATIONS
36
10. APPENDAGES
37
11. SURVEY ANALYSIS AND INTERPRETATION
40
12. BIBLIOGRAPHY
54
A Project Report On
CONSUMER PERCEPTION ON SOFT DRINKS WITH SPECIAL REFERENCE TO PEPSI CO.
A Dissertation submitted in partial fulfillment of the requirement for the award of the Degree of
“MASTER OF BUSINESS ADMINISTRATION”
By K. RAMESH (ROLL NO. 4201112)
Under the Guidance of
MS. AATHIYA
AURORA SCHOOL OF BUSINESS (Affiliated to OSMANIA University)
Chikkadapally, Hyderabad. 2001 - 2003
ABSTRACT OF THE STUDY
The new economic policies of the Government of India adopted in the mid eighties were further impetus by the early nineties. The Indian market has under gone considerable change, as a direct consequence of many of these policies and soft drink industry is no exception to this.
Keeping the above mention perspective in the background, the researcher has selected soft drink market, since the marketing task has become more challenging and intensive competition as opened up new vistas.
Companies are evolving marketing strategies by studying the demands of the market place increasingly penetrating in to appropriate market segments introducing differentiated products to improve their market share. The soft drink market has achieved an accelerated growth in the past decade.
Soft drink includes all type of non-alcoholic, carbonated flavored or otherwise sweetened beverages. The entry PEPSI and the re-entry of COCA-COLA in the Indian market are inevitably facing
stiff
competition
but -1-
the
ultimate
winner
is
customer/consumer. This as lead the researcher to study the perception of consumers towards different brands of soft drinks and to gauge out the promotional strategies being adapted by marketers to lure promiscuous buyers and win a large share in the markets.
The Cola wars are intensifying and bringing manifold changes in the soft drink industry. The researcher has conducted a detail survey, interpreting the responses to study the perceptions of the consumers. Now the people with changing life styles and increase income labours have made the soft drink a comman man drink.
Even though the existing system of marketing of soft drink has not tapped such a big market in the interiors of the countries specially the rural areas, as marketing in the sub urban and rural areas is developing slowly.
Despite the soft drink industry is growing at a very healthy pace and stands at 18% per annum. The market for cool drinks comprises of teens and youngsters in the 16-25 years age group who are largest consumers of the soft drinks in the country followed by 26-35 years age group people and adults in the age -2-
group of 35 and above, followed by the age group of below 15 years hence, companies must develop their product and marketing strategies to suit their wants and needs.
-3-
INTRODUCTION TO SOFT DRINKS INDUSTRY
HISTORY
The history of soft drink market in India started way back in 1949 with the introduction of soft drink by parle group, followed by other manufactures of the soft drinks like pure drinks CocaCola, Mc-Dowell, Duke, etc, after the exist of Coca-Cola in 1978, parle become the undisputed market leader till recent past and early nineties. In 1990’s reemerges of Pepsi gave new dimension to soft drink industry.
CHANGING FACTS OF SOFT DRINK INDUSTRY
Initially when soft drinks were introduced in the 19 th century it was positioned as a thirst quenching drink but due to the changing times it is now positioned as a fun drink. Soft drinks are consumed by almost every section of the society for their cool and tasty attributes. The soft drinks in India were available only in 200ml with Thums-Up, first 250ml was to counter the entry of Pepsi and secondly to increase the market share. The 250ml Thums-Up was introduced before the summer of 1989 as a Maha Cola with simple and clear position as more Cola, in same price. It was the clear conveying of a consumer of benefit and that did the -4-
trick hands the sales soared. The Campacola reacted by introducing 300ml bottle in Delhi but this did not work as the price was not same and consumer’s benefit was not clear. But with the success of the 250ml bottle Parle to decided to carry on the attract to its logical conclusion in 1990’s, by then Lehar Pepsi made its entry and was doing well in Delhi. So Thums-Up came with a jumbo offer of 500ml. Concept developed by Pale group in India was followed by Pepsi and later on such tricks were common in soft drink industry in India, for their bottle supremacy, defaulting benefits for consumers and increasing their market share. Pepsi foods are now a head of their competitor by introducing 200ml and 2.5 liter plastic bottle (economy pack).
In 1993 Coca-Cola again re-introduced himself in Agra, and after that they purchased Parle soft drink group with unbelievable price. The massive entry was threatened the Pepsi cola who was the market leader at that time and Pepsi was introduced himself again as a most preferred Cola but the strategies of Coca-Cola was so wrong due to that up to now the company is in the loss. But the strongest weapon in its hand is Thums-Up. In starting the CocaCola Co’s, try to dominate upon Thums-Up, so that they were changes in taste and slow down the promotional activities. But
-5-
later they changed their strategies and again trying to position it with slogan of “I WANT MY THUNDER”.
In case of Lemon’s drink Limca was the only brand available in cloudy lemon flavor with enjoyed monopoly for almost two decades, because the consumers associated this drink with the traditional Nimbu Pani, and isotonic salts it contains do indeed help quench thirst. The Pepsi attacked the Gold Spot in 1990 and 1991 by introducing Lehar 7up and Marinda, also felt the need of attacking its competitor parle Limca by introducing Lehar Marinda also felt the need of attacking its competitor Parle Limca by introducing Lehar Team, actually the year 1993 saw the emergence of Lehar teem 250ml bottle.
PRESENT SENERIO IN INDIA
The government considered soft drink as a industry due to this the excise duty levied by the government of soft drink is very high. The bottle cost from Rs 10-15, while pet bottles costing from Rs 20-45. The soft drink industry has an annual sale exceeds to about 800 cores and most of the bottling company have been flourishing.
-6-
Since the last decade all the soft drink companies have grown and expanded their particular brand in the market for better consumer services.
According to IMRB retails tracking study share of bottle soft drink market in May 2003, Pepsi brands have 47.6%, Coca-Cola brands have 49.5% and others have 2.9%.
Share of Cola Segment
Share
of
Orange Share
of
Lemon
Segment
Segment
Pepsi – 48.7%
Mirinda Orange–54%
Limca – 74%
Coke – 27.1%
Fanta – 44%
Mirinda Lemon – 26%
Thums up – 23.1%
Gold Spot – 2%
-
Campa Cola – 1.1%
-
-
The capacity of present India soft drink market is around 150 million cases. The per capita consumption in India is 6 bottles per annum.
COMPLEXCITIES IN THE SOFT DRINK MARKET
The soft drink business in among the most complicated because of following reasons: 1. At the most basic level, it is a two way business in way that when a consumers buys a cigarette or soap, that -7-
ends the marketing story, where the soft drink bottles have to be collected back. 2. It is a seasonal product and sells strongly just for six months. 3. Value edition is done by retailer by way of chilling the bottle 4. It is impulse by consumer loyalty is uncertain.
INDUSTRY TO THE COMPANY
Pharmacist Calerb D.Bradham invented Pepsi Cola in 1893. Pepsi is a U.S $ 28 billion company with headquarters in New York.
PEPSI CO. WORLD WIDE OPERATIONS
Pepsi Co operates on a global basis. 170 + countries with an employ force of 338000. Pepsi Co. is the third largest company in the U.S and amongst the 15 th largest in the world.
U.S fortune 50 rank in their companies annual revenue at $28 billion and world wide operations more than 150 countries with annual profit of $ 2.5 billion.
-8-
PEPSI CO’S OPERATING COMPANIES ARE
1. PEPSI Cola North America. 2. PEPSI Cola International. 3. PEPSI Co Wine Sprits. 4. PEPSI Co foods International. 5. Fritolay. 6. Pizza Hut 7. Kentucky Fried Chicken. 8. Taco Bell.
Having the $ 28 billion+ annual sales.
PEPSI : THE PAST AND THE PRESENT
In the Century since James Henry king, first gave his nod of approval millions of people all over the world have enjoyed the great taste of Pepsi-cola today, Pepsi –Cola is sold is more then 170 countries and accounts for about one quarter of the world’s soft drink. More the 70% of Pepsi’s sales are from North America, where it enjoyed strong growth and increased volume.
-9-
Our
well-known brands include Pepsi, Diet Pepsi, Pepsi
One, Mountain Drew, Mug, All sport, Lipton Brisk and Aquafina. In addition, salty snacks and juices are staples of out sister divisions, Frito-lay and Tropicana. One of the biggest factors in long-term success of consumers Products Company is whether more people fall in love with your products. Each year Pepsi-cola account for nearly one –third of total soft drink sales in the US, a consumer market totaling about 454 billion .in 11992 Pepsi –Cola formed a partnership with Thomas J.Lipton Co. today Lipton is the biggest selling ready-to-drink tea brand in the united states.
Outside the United States, Pepsi-Cola company’s soft drink operations include the business of 7-up international. Pepsi-Cola began its selling its products internationally in 1934 with is operations in Canada. Operations grew rapidly beginning in the 1950’s. Today Pepsi-Cola products account to brands about A quarter of all soft drink sold internationally. In addition to brands about marketed in the United States, major products include Mirinda and Pepsi Max, Saudi Arabia, Spain, Thailand, United Kingdom. The company has also established operations in the emerging markets of the Hungary, India, Poland, Slovskis and Russia, where Pepsi-Cola was the first US consumer product
- 10 -
to be marketed. Pepsi-Cola provides advertising, marketing, sales, and promotional, support to Pepsi-Cola bottlers and food service customers. This include some of the world’s best loved and must recognized advertising. New Advertising and exciting promotions keep Pepsi-Cola brands young. The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers. The company also provides fountain beverage products.
PEPSI CO. MISSION STATEMENT
“Pepsi Co overall mission is to increase the value of our shareholder’s investment. We do this through sales growth, cost control and wise investment of resources. We believe our commercial success depends up on offering quality and value to our customers and environmentally sound, and providing a fair return to out investors while adhering to the highest standrards of integrity”.
THE PEPSI POWER:
The year was 1993,and ‘the real thing’ was about to stage a come back in the Indian market after a16 –year absence. At Pepsi Foods headquarters in Mohan Deo Building in New Delhi, the hearts of Pepsi’s top brass were knocking furiously at their Ribs. An internal market research report by Pepsi had shown that if Coke - 11 -
were to be made to be available in the country –more than 70% of Pepsi’s customers would shift to four years of an indifferent presence, after which it had barely begun to establish itself in the India bottled soft drink market.
The going gotten tough many a time, but the tough had been on the roll. Eight years have passed by Pepsi still exists, with its head high. Ron Coughlin .VP, International marketing, Pepsi-Cola says “the India marketing Team is the Pepsi world” It’s been blood, toil, tears and sweat of all stake holders, Pepsi executives, bottlers, ad agency, Hindustan Thompson Associates and Yes, Sachin Tendulker and Shahrukh Khan and, “ yeh dil still maange more”
Ever since Pepsi uncorked its fizz- are you ready for the magic? It did in styles .it was grand unveiling, much like the icon Pepsi used back in 1932, to discover what brand stood for. The icon never played cricket, it never got its hair burnt like Michael Jackson, it never dated post spice like David Beckham ….. Pepsi and P, the Pepsi cops. It was Pepsi, which was first to introduce a marketing jungle, the first to foray into musical marketing. So what they did way back then is still paying off.
- 12 -
The Coke’s second coming changed the attitude pf Pepsi towards the way it looked of the entire marketing battle and its own existence in India. It became competitive; it started to believe in direct attack. While coke may have found it difficult to find a common theme that ran through all its advertising, it got aggressive in India with its take over of parle brands ThumsUp, Gold Spot and Limca. Another big blow, another time: Pepsi lost out in its bid for the rights to the cricket world cup 1996.What followed is history; the high – decibel, out-of-the box advertising by Pepsi- “nothing official about it”
The real growth for both Pepsi and Coke can come from increasing the market. Though the battles over market share continue to rage and Hrithik Roshan and Shahrukh Khan will fight it out, the future will belong to the one that has its eye on per capita consumption. It’ll obviously be market growth over market share.
Looking at the different strategies adopted by both these companies one can that Pepsi has adopted challenged strategy to counter its ‘competitor’ the Coke. Whatever the outcome of the clash between the soft drink giants. There is no doubt that both Pepsi, that has declared bankruptcy twice in the past, and coke, that - 13 -
launched as a caramel colored syrup in 1886.Will spring many more surprises on the Indian consumer leaving him wondering whether his cola is the “Right Choice” or whether “it’s the real thing”?
- 14 -
PROFILE OF HYDERABAD BEVERAGES PVT .LTD
Pepsi mostly supplies its products through franchises. It has tieups with the local bottling companies.
Hyderabad beverages Pvt .Ltd, is an operating franchises for Pepsi foods India Limited since 1991, when Pepsi was launched in Hyderabad on 7th march 1991.It undertakes the bottling and distribution functions for the company. Mr. S.K. Jaipuria, chairman, heads Hyderabad Beverages Pvt. Ltd.
Hyderabad Beverages Pvt. Ltd under takes production operations such as “Bottling of soft drinks”. They have their own products units. Hyderabad Beverages Pvt. Ltd, is also responsible for local advertising and other promotional activities .The day to day administrative activities is also carried out on an independent basis, sales, marketing, and distribution of the product depends on the sole discretion of Hyderabad Beverages Pvt Ltd.
Hyderabad Beverages Pvt Ltd. uses the indirect market channel. It supplies its products through various outlets by the
- 15 -
retail system. It adopts 3-way market distribution for supply of brands.
Market distribution of various brands of Hyderabad Beverages Pvt. Ltd., 1. City market 2. Up country markets [districts] 3. Credit outlets
Hyderabad Beverages Pvt. Ltd. uses almost the same type of distribution channels in the various market with slight variations in the mode of transportation etc. The distribution channels for various markets can be outlined thus
1. Distribution Channels for city market: Factory –carrying forward agents- Dealer or distributor-retailer-consumer
2. Distribution channels for the country market: Factory-Carrying forward agents-Local distributionRetailers-consumer.
3. Distribution channels for credit outlets: - 16 -
Factory-outlets-consumers
ORGANISATION PROFILE OF PEPSI:
Pepsi Company Inc., Limited was launched over a hundred years ago, in the US, though it entered the international market with a move to Russia only in 1959.
Today Pepsi is one of the largest Multinational companies with a turnover of 22 billion dollars of allots business worldwide. Pepsi Co Inc., Limited owns Pepsi foods.
Pepsi foods entered the Indian Market in 1990’s is a joint venture with Voltas and Punjab Agro. In1992-1993 the total investment in India Organics Ltd., Pepsi has introduced Rs 75 crores for pet bottles.
The head quarters of Pepsi foods is situated in down town Delhi, since Pepsi’s market reach is small, the company plans to bridge this gap quickly by adding its own bottling plants an at the same time increasing the capacities of the existing plants.
- 17 -
The company plans have 4 company-managed operations at Mumbai, Kolkata, Chennai, and Ahmedabad. It has bottling facilities (both owned & franchised) located in various parts of the country. The company intends to spend RS. 900 crores or more in lieu of its plans to increase its market share.
The company has three business divisions. •
Beverages
•
Exports
•
Foods
Pepsi foods Ltd., has its concentrate, Snacks, fruits processing facilities in the Punjab state, Pepsi claims to be “The worlds favorite salty snacks company always providing great value to consumers.”
- 18 -
AN OVERVIEW OF CONSUMER BUYING BEHAVIOR
Consumer buying behavior refers to the buying behavior of the final consumer, individuals and households and who buy the goods and services for personal consumption.
The consumers for the selection of the soft drink either go for brand loyalty or they choose a brand based on retailer’s advice. There are few buyers who buy in bulk for parties. In this way the individual might be trying to choose or cater to his perception of his guests preference. A brand can convey up to six levels of meanings
1. Attributes 2. Benefits 3. Values 4. Culture 5. Personality 6. User
Consumer is the heart of any marketing agency, hence marketers are now spending money on consumers research that - 19 -
includes the study of what they buy, when they buy, how often they buy, and how often the consume or use it.
A MODEL OF BUYING BEHAVIOR:
A consumer’s decision to purchase a particular product or service is the result of complex interplay of variables. Marketing and environmental stimuli enter the buyer’s consciousness. The buyer’s characteristics task decision process leads to certain purchase decisions. The marketer’s task is to understand what happens in the buyer’s black box or consciousness between the arrival of outside stimuli and the buyers purchase decision (buyer’s black box model). They must answer two questions-
1. How do the buyers characteristic- cultural, social, personal, psychological influence buying behavior?
2. How does the buyer make purchasing decision?
Marketing Stimuli Product Price Place Promotion
Other Stimuli Economic Technological
Political Cultural
- 20 -
Buyer’s Black Box Buyer Buyer Charact- Decision eristics process Buyer’s Response Product choice Brand choice Dealer choice Purchase timing Purchase amount
CHARACTERISTICS
AFEECTING
THE
CONSUMER
BEHAVIOR:
Consumer behavior is affected by a host of variables ranging from personal motivations, needs attitudes & values, personality characteristics, socio-economic and cultural backgrounds, age, sex, professional status to social influences of various kinds exerted by family friends, colleagues and society as a whole. The combinations of these various factors produce a different impact on each one of us manifested in our different behavior as consumers. Psychological factors such as individual consumer needs and motivations, perceptions, attitudes, the learning process and personality characteristics are the similarities, which operate - 21 -
across the different types of people and influence their behavior. Among the social influences affecting behavior we can classify the influences of family friends, leaders and social class to which the consumer belongs.
MODEL OF FACTORS INFLUENCING CONSUMER BEHAVIOUR B CULTURAL
Culture Sub-Culture Social Class
U Y
SOCIAL
Reference groups Family Roles & Status
E
PERSONAL
Personality Age & Life cycle stages Occupation Income Lifestyle
PSYCHOLOGICAL
Motivation Perception Learning Beliefs & Attitudes
R C H A R A
A. CULTURAL FACTORS: These exert broadcast and
influence on consumer behavior.
- 22 -
1. Culture: The set of basic values, perception, wants and behavior learned by a member of society from family and other important institutions. Markets should always try to spot cultural shifts in order to discover new products that might be wanted.
2. Subculture: Each culture contains small subculture i.e., group of people with shared value system based on common life experiences and situations. Ex: Nationalities – Indian, Italian, American, and European.
Religion – Hinduism, Jainism, Christianity, Islam.
3. Social Class: These are relatively homogenous and enduring division in a society which are hierarchically ordered and whose members share similar values, interests and behavior such as upper, middle and lower class.
- 23 -
B. SOCIAL FACTORS: A consumer’s behavior is also
influence by social factors like reference groups, family, roles & status.
1. Reference Groups: A person’s reference group consists of all the groups that have a direct or an indirect influence on the person’s attitude or behavior. These include primary group, secondary group, aspirational group, dissociative group and opinion leaders. The importance of reference group influence varies across products and brands.
2. Family: Family members constitute the most influential primary reference groups shaping up buyer’s behavior. a. Family of orientation consists of one’s parents. b. Family of procreation consists of one’s spouse and children.
3. Roles & Status: A role consists of activities that a person is expected to perform according to the persons around him or her. Each role carries a status reflecting the general esteem given to it by the society. People
- 24 -
choose products that communicate their role and status in society.
C. PERSONAL FACTORS: Consumer’s purchase decisions
are also affected by his personal characteristics such as age, sex, and stage in family life cycle, his overall self-concept.
1. Age & Life Cycle Stage: People buy different goods & services over their lifetime. Marketers often define markets in terms of the life cycle stage.
2. Occupation: A person’s consumption pattern is influenced by his/her occupation whether it include blue-collar workers and white-collar workers.
3. Income: Borrowing power, attitude towards spending verses
saving,
personal
income
determines
the
purchasing motive of the customer.
4. Life Style: A person’s pattern of living as expressed by his activities, interests and opinions influence consumer behavior.
- 25 -
5. Personality & Self Concept: By personality and selfconcept,
we
mean
the
person’s
distinguishing
psychological foundations that lead to relatively consistent and responses to his or her environment.
D. PSYCHOLOGICAL
FACTORS:
A
person’s
buying
choices are also influenced by four major psychological factors – motivation, perception, learning, beliefs & attitudes.
1. Motivation: A person has many needs at any given time. Some needs are biogenic and others are psychogenic. These needs are useful for the marketer to identify what generic level needs; his product is capable of fulfilling and accordingly positions his product and backs it up with relevant marketing inputs.
2. Perception: Perception is the process by which an individual selects, organizes and interprets information inputs to create a meaningful picture of the world. There are three aspects of perception – selective exposure, selective distortion, and selective retention.
- 26 -
3. Learning: When people act, they learn. Learning describes changes in an individual’s behavior arising from experience.
4. Beliefs and Attitudes: Through acting and learning acquit their beliefs and attitudes that is a descriptive thought that an individual has about a product, service, idea or practice is belief and enduring and learning to act in a particular consistent way with regard to a given object or idea is attitude.
CONSUMER DECISION PROCESS
A decision is the selection of an action from two or more choices. There are five stages in buyers decision process-
1. Problem Recognition: The consumer buying process starts when the buyer recognizes a problem or need. The buyer senses a difference between his existing state and his actual state desired. The need can be triggered by internal stimuli like hunger, thirst or external stimuli like advertisement.
2. Information Search: An aroused consumer will be inclined to
search
for
more
information - 27 -
through
personal,
commercial, public or experiential sources. Through gathering information the consumer learns about competing brands and their features. Competing brands and their features. A company must strategies to get its brand into consumer’s choice set.
3. Evaluation of Alternatives: Consumer evaluates product judgments based on conscious and rational basis. The consumer develops brand beliefs about where each brands stands on each attribute i.e., brand image.
4. Purchase Decision: In the evaluation stage, the consumer forms preferences among the brands in the choice set. The consumer may also form an intention to buy the most preferred intention and purchase decision –a) Attitude of others. b) Unanticipated situational factors.
5. Post purchase Satisfaction Or Cognitive Dissonance: After purchasing the product, the consumer will experience some level of satisfaction or dissatisfaction. The marketer’s job doesn’t end when the product is bought but continues into the post purchase actions, post purchase product use and
- 28 -
disposal. A dissatisfied consumer may either take public or private action.
MODEL OF BUYER DECISION PROCESS
Problem Recognition
Information search
Evaluation of alternatives
Attitudes of others Purchase Decision
Unexpected situational factors
Post purchase Behavior
- 29 -
Purchase intention
OBJECTIVE OF THE STUDY
The study has been conducted in twin cites and the respondents chosen randomly. The sample size has been limited to 100, which may restrict the scope and complexity of the study. The scope of the project could be broadened if the project duration is extended and the team strength be raised. The primary objective of the report is to study the attributes, which a consumer considers important while taking decision to purchaser soft drink.
1. To find out the relative position of various brands in market. 2. To find out the top of the mind awareness level of soft drink among consumers. 3. To find out the medium which is most effective in reaching the consumers. 4. To find out the most popular point of purchase. 5. To identify the age group which consume the soft drink more. 6. To know what are the factors, which influence towards brand choice. 7. To identify the factors influencing the consumption pattern.
- 30 -
RESEARCH METHODOLOGY RESEARCH
DESIGN – It involves survey of
consumers, understanding the market and changing trends by Data Survey
DATA SOURCE
– The primary data was collected
from the consumers and secondary data through various mediums.
RESEARCH
INSTRUMENT
–
The
research
instrument used was a questionnaire backed by personal interview for data collection.
SAMPLE SIZE
– 100 for consumers.
SAMPLE AREA
– Sample size of 100 members
comprised of and different areas of twin cities.
SAMPLING
METHOD
judgmental.
- 31 -
–
Convenience
and
LIMITATIONS
The survey was conducted in twin cities only, so the data collected can be generalized.
The survey was conducted in starting of summer, due to which consumption of soft drink was influenced. So there was a seasonal constraint.
The consumers/customers sample size is 100 (male-60 and female-40), because of time and financial constraints. Hence the data may not be representation on the entire population.
Even though every care is taken to formulate the questionnaire, some errors may have been crept in.
- 32 -
ANALYSIS & INTERPRETATION 1. AWARENESS OF BRANDS:
BRANDS
MALE
FEMALE
PEPSI
18
12
THUMS UP
22
15
COKE
7
3
MIRINDA
4
2
MAAZA
5
5
7 UP
2
2
SPRITE
2
1
TOTAL
60
40
AWARENESS OF BRANDS S O F SPRITE T MAAZA
D R I N K S
FEMALE MALE
COKE
PEPSI 0
5
10
15
20
NO. OF RESPONDENTS
- 33 -
25
A high percentage of all brand awareness has been noticed and few consumers were unaware of less popular brands.
2. MOST CONSUMED BRAND
BRANDS
MALE
FEMALE
PEPSI
16
7
THUMS UP
26
11
COKE
7
6
MIRINDA
1
2
MAAZA
2
7
7 UP
-
-
SPRITE
3
2
POSITION OF DIFFERENT BRANDS N O . O F R E S P O N D E N T
30 25 20 15
MALE FEMALE
10 5 0 PEPSI
COKE
MAAZA
BRANDS
- 34 -
SPRITE
THUMS UP has been the favorite brand both among the consumers of either sex, followed by PEPSI.
3. FACTORS INFLUENCING PURCHASE DECISION:
Attributes
MALE
FEMALE
AVAILABILITY
5
4
PRICE
3
3
TASTE
39
27
ADVERTISEMENT 3
3
FLAVOUR
4
9
PURCHASE INFLUENCING FACTORS 15%
8%
5%
5%
AVALIABILITY PRICE TASTE ADVERTISEMENT FLAVOUR
67%
The attributes accorded the highest priority are taste with 67% and flavor & availability followed recording 15% & 8% respectively.
- 35 -
4. BRAND PREFERENCES:
Ratings
MALE
FEMALE
EXCLEMENT
15
14
VERY GOOD
17
17
GOOD
28
9
RATING OF PREFFERED BRAND
25% EXCELLENT
47%
VERY GOOD GOOD 28%
Most consumers have rated their preferred brand good but not very good (or) excellent.
- 36 -
5. FREQUENCY OF CONSUMPTION:
Frequency
of MALE
FEMALE
Consumption DAILY
12
3
THRICE A WEEK
15
8
WEEKLY
12
13
OCCASIONALLY
14
13
SEASONALLY
6
4
FREQUENCY OF CONSUMING 10%
22%
DAILY THRICE A WEEK
23%
WEEKLY OCCASIONALLY 25% 20%
SEASONALLY
Occasional consumption frequency has been found to be on a high note. A transition has been identified in their frequency of consumption from being consumed seasonally to being consumed weekly.
- 37 -
6. BRAND SWITCHING:
Brand Switching
MALE
FEMALE
YES
34
24
NO
27
15
Reasons
MALE FEMALE
Due to non-availability of regular 10
8
brand Due to non-availability of chilled 6
2
drink For tasting different flavor
15
11
Influenced by friends
3
3
Other reasons
-
-
- 38 -
SHIFTING OF BRANDS N U M B E R O F R E S P O N D E N T
35 30 25 20 YES 15
NO
10 5 0 MALE
FEMALE
GENDER
Brand switching have been identified and the primary reason has been the propensity to taste different flavors.
- 39 -
7. PACKING:
Packing
MALE
FEMALE
200 ml
27
16
300 ml
5
7
500ml
3
-
1 lt
3
2
1.5 lt
8
3
2 lt
-
1
TINS
3
2
TETRA PACK
-
1
FOUNTAIN GLASS 1
3
TYPE OF PACKAGE % O F R ES P O N D E N T
30 25 20 15 10 5 0 l
MALE
m 0 0 2
l m 0 0 5
t l 5 . 1
FEMALE
- 40 -
S N I T
N I A T N U O F
200 ml is fast moving quantity, 300 ml is loosing popularity.
8. PRICE RATINGS:
Rating
MALE
FEMALE
HIGH
24
14
REASONABLE
35
25
LOW
1
1
40 30
NO. OF RESPONDENTS
20 10 MALE
0 HIGH
LOW
RATINGS
MALE FEMALE
Majority consumers have said the price as reasonable and considerable chunk have rated price as being high which is of concern.
- 41 -
9. EFFECTIVE MEDIUM FOR ADVERTISEMENT:
MEDIUM
MALE
FEMALE
NEWS PAPER
9
4
TELEVISION
43
32
MAGAZINE
1
-
HOARDINGS
1
2
POSTERS
2
2
SIGN 3
1
GLOW BOARDS
N U M B E R O F R E S P O N D E N T
45 40 35 30 25 20 15 10 5 0 NEWS
MAGAZINE
PAPERS
POSTERS
MALE FEMALE
MEDIA TYPE
- 42 -
TELEVISION has been rated the most effective medium with NEWSPAPERS (print media) following up. 10.
ADVERTISEMENT APPEAL :
AD APPEAL
MALE
MODEL/CELEBRITY
IS 12
FEMALE 7
GOOD SLOGAN IS GOOD
18
13
THEME IS GOOD
16
12
SPONSERED
EVENT
IS 4
5
EXECUTION IS GOOD
9
4
GOOD
- 43 -
LIKING ASPECT IN AN AD 15%
20%
7%
27%
31%
MODEL/CELEBRITY IS GOOD SLOGAN IS GOOD THEME IS GOOD SPONSERED EVENT IS GOOD EXECUTION IS GOOD
Good catchy slogan is the most likable Ad appeal, with theme of concept next most appealing.
11.
PHRASE INFLUENCE:
Phrase Influence
MALE
FEMALE
YES
53
36
NO
7
4
- 44 -
Brands
MALE
FEMALE
PEPSI
19
4
THUMS UP
10
6
COKE
7
8
MIRINDA
4
3
MAAZA
2
1
7 UP
1
-
SPRITE
10
4
IMPRESSIVE SLOGANS 60 50 40
NO. OF RESPONDENTS
30 20 10 0 MALE
YES
FEMALE
NO
- 45 -
MOST LIKED SLOGANS Male Res ondents
10 19
1 2 4 7 PEPSI
THUMS UP
10 COKE
MIRINDA
MAAZA
7 UP
SPRITE
MOST LIKED SLOGANS Female Res ondents
1
4
3
14
8 6 PEPSI
THUMS UP
COKE
MIRINDA
MAAZA
7 UP
SPRITE
Present slogans are found to be catchy hence impressive. PEPSI slogan is voted the most effective, THUMS UP & COKE followed respectively.
- 46 -
SUGGESTIONS
Keeping in view the limitations and findings the following suggestions are put forth. Since
taste is the most important criteria the drink can be
made palatable to Indian taste by bringing out more effervescent version of price.
More
knowledgeable and health conscious consumers didn’t
consider the drink a good value for money.
Compulsive
buying has been found generating negative
feelings and is weaving away potentials that are not loyalists.
Diet
conscious consumers should be provided low caloric
drinks at reasonable cost.
Rusting
of crows has been noticed which led to broken edges.
Bottling
plant are to be set hygiene standards ensuring the
brand image does not suffer any onslaught.
- 47 -
Instead
of tall promises, on the spot gifts is preferred
considering Indian culturing.
Frequent
buyers
should
be
recorded
and
rewarded
accordingly.
There
has been a demand for umbrellas from retailers, which
were not available from the company.
Pepsi
clubs should be established in college canteen thus
promoting his brand also sponsoring of college fete at various levels would establish the brand among youth, as the habits tend to continue for life.
Ad
films are displayed in film shows, as switching problem
doesn’t arise in theaters.
Inadequate
product promotion in case of 7-up has been
noticed which could be a good potential.
- 48 -
CONCLUSIONS
•
From the findings of the study it can be inferred that the demand for soft drinks is occasional with the maximum sales being in summer.
•
15-24 age group contributes a large percentage of sales and hence younger generation is the focus of soft drink consumption.
•
Television is the most effective medium followed by newspapers.
•
Taste has been found to be the most important factor influencing purchase decisions High brand awareness has been noticed among consumers.
•
Bakeries have grown to be the popular outlets for soft drink consumption.
•
The company’s catchy slogan is the most appealing in ad films.
- 49 -
•
Sales promotion programs of the company are popular among consumers with gifts being the most preferred.
•
The company’s brand has been rated low on fuzziness and hence less suitable to south Indian palate accustomed to spices.
•
300 ml pack is popular among consumers, 500 ml, 2 lt. Disliked.
•
Brand switching is prevalent among majority consumers.
•
Consumers preferred film stars and cricketers endorsing their preferred brand.
•
Retailers were reluctant for exclusive outlets.
•
Retailers rate behavior of company’s sales people very good.
•
Retailers abstained from recommending any brand of soft drink to customers.
- 50 -
APPENDAGES QUESTIONNARIE FOR CUSTOMERS/CONSUMERS
1. Which brands of soft drinks are you aware of? Pepsi [ ] Thums Up [ ]
Coke [ ]
Maaza [ ] 7 UP
Sprite [ ] All
[]
Mirinda [ ] []
2. Which brand of soft drink you have consumed the most? Pepsi [ ] Thums Up [ ]
Coke [ ]
Maaza [ ] 7 UP
Sprite [ ]
[]
Mirinda [ ]
3. What attributes and factors influence your purchase of soft drinks? (Order of Preference). Availability
[]
Price [ ]
Advertisement [ ]
Flavor [ ]
Taste [ ]
4. How do you rate the preferred brand of soft drink? Excellent [ ]
Very Good [ ]
Good [ ]
5. How often do you consume soft drinks? Daily
[]
Occasionally [ ]
Thrice a week [ ] Seasonally
Weekly [ ]
[]
6. Do you shift from one brand to another brand? Yes [ ]
No [ ] - 51 -
If Yes, state the reason: a) Due to non-availability of your regular brand [ ] b) Due to non-availability of chilled drink
[]
c) For tasting different flavors
[]
d) Influenced by friends
[]
e) Other Reasons __________________________
7. Which is the package that you prefer most? 200ml [ ] 300ml [ ] 500ml [ ] 1 Litre [ ] 1.5 Litre [ ] 2 Litre [ ] Tins
[ ] Tetra Pack [ ]
Fountain Glass [ ]
8. How do you rate the present price of soft drinks? High [ ]
Reasonable [ ]
Low [ ]
9. Rank the media in the order of effectiveness for advertising of soft drinks Newspapers [ ] Television [ ]
Magazines
Hoardings
Glow Sign Boards [ ]
10.
[ ] Posters
[]
[]
What appeals to you in the advertisement of the
preferred brand? Model/Celebrity is good [ ]
Slogan is good [ ]
Theme of concept is good [ ]
Sponsored event is good [ ]
Execution (Photography/still) is good [ ]
- 52 -
11.
Do you think the present slogans are impressive? Yes [ ]
No [ ]
If Yes, which of the following PEPSI
Yeh Dil Mange More Aahaa!
[]
COKE
Jo Chahe Ho Jaye Coca Cola Enjoy! [ ]
THUMS UP
Taste the Thunder
[]
MIRINDA
Zor Ka Jhatka Dheere Se Lage
[]
SPRITE
Dikhavon pe na jao, apni akal lagao [ ]
MAAZA
Taaza Mango, Maaza Mango
[]
7 UP
Cool, Light & Easy
[]
NAME OF RESPONDENT: ________________________ GENDER:
Male [ ]
Female [ ]
OCCUPATION: ___________ EDUCATION: ___________ INCOME APPROX: ________________________________ ADDRESS: _______________________________________ _______________________________________ _______________________________________ Ph No:
Off: _____________ Res: __________________
Please ‘tick’ your age 10 – 15
15 - 24
25 - 34
- 53 -
35 & above
