kupdf.com_a-study-on-consumer-behaviour-towards-soft-drinks.pdf

STUDY OF CONSUMER BEHAVIOUR TOWARDS SOFT DRINKS

A

PROJECT REPORT ON STUDY OF CONSUMER BEHAVOIUR TOWARDS SOFT DRINKS

SUBMITTED BY PRADNYA SHETTY M.Com Part II- Semester IV !"#-"$

PROJECT %UIDE Pro&. PRASHANT SHINDE

SUBMITTED TO UNIVERSITY OF MUMBAI

BUNTS SAN%HA MUMBAI ANNA 'EE'A CO''E%E OF COMMERCE ( ECONOMICS SHOBHA JAYARAM SHETTY CO''E%E FOR B.M.S S)as)* Ma+mo)a+ S)ett, H*)er E/0at*o+ Com12e34 B/+tara B)a5a+a Mar4 K/r2a 6East74 M/m8a* #!! !9!

Cert*:0ate 1


BUNTS SAN%HA MUMBAI ANNA 'EE'A CO''E%E OF COMMERCE (ECONOMICS SHOBHA JAYARAM SHETTY CO''E%E FOR B.M.S SHASHI M ANMOHAN S HETTY H H I%HER E DUCATION C OMP'E;4

This is to certif th!t Miss" #RADNYA SHETTY of M"Co$ #!rt II Se$ester IV% h!s &'(ert!)e' * co$+,et co$+,ete( e( the +ro-e +ro-ect ct .or) .or) tit,e( tit,e( A STUD STUDY OF CONSUM CONSUMER ER BEHA BEHAVIOUR VIOUR TOWARDS TOWARDS SOFT DRINKS (&ri'/ the !c!(e$ic e!r 20113 &'(er the /&i(!'ce of #rof" #r!sh!'t Shi'(e s&4$itte( to this co,,e/e i' f&,5,$e't of the c&rric&,&$ of M!ster of Co$$erce% U'i6ersit of M&$4!i"

This is ! 4o'!5(e +ro-ect .or) * the i'for$!tio' +rese'te( is tr&e * ori/i'!, to the 4est of o&r )'o.,e(/e !'( 4e,ief"

PROJECT %UIDE

COURSE PRINCIPA'

E;TERNA'

CO-ORDINATOR

E;AMINER

DEC'ARATION I, Mrs.PRADNYA SHETTY of Anna Leela College Of Commerce & Economics, So!a So!a "a#ara "a#aram m Se$$ Se$$# # Colle College ge %or .M.S, .M.S, M.Com M.Com Par$ Par$ II Se Seme mes$e s$err I', I', ere!# ere!#

2


(eclare $a$ I a)e com*le$e( $e *ro+ec$ on S$(# of Consmer ea)ior $o-ar(s Nes$le an( Ca(!r# Cocola$e in aca(emic #ear /01203. Te informa$ion s!mi$$e( is $re an( original $o $e !es$ of m# 4no-le(ge.

Si/'!t&re of the St&(e't

8#RADNYA 8#RADNYA SHETTY9 SH ETTY9

ACKNOW'ED%MENT

7


I here4 !c)'o.,e(/e !,, those .ho (irect, or i'(irect, he,+e( $e to (r!ft the +ro-ect re+ort" It .o&,( 'ot h!6e 4ee' +ossi4,e for $e to co$+,ete the t!s) .itho&t their he,+ !'( /&i(!'ce

First of !,, I .o&,( ,i)e ,i)e to th!') the +ri'ci+!,% +ri'ci+!,% Dr" Dr" K"S" Chee$! Chee$! !'( the coor(i'!tor #rof" #r!sh!'t Shi'(e% .ho /!6e $e the o++ort&'it to (o this +ro-ect .or)" The !,so co'6ee( the i$+ort!'t i'str&ctio's fro$ the &'i6ersit fro$ ti$e to ti$e"

:!st 4&t 'ot the ,e!st; I !$ th!')f&, to the U'i6ersit of M&$4!i for o



CHA#TER 1 INTRODUCTION TO THE STUDY

"." NEED FOR THE STUDY ". OBJECTIVE OF THE STUDY ".< MEYHODO'O%Y OF THE STUDY ".# SCOPE OF THE STUDY 1"3 'IMITATION OF THE STUDY

1"1 NEED FOR THE STUDY

With the economic liberalization in India a number of global companies have been coming forward to invest in India and tapping perhaps and world's biggest growing market. As the floodgates have been opened up for Multinational Companies, the global giant Cocacola also decided to make an entr! into the Indian market. In India, the per capita consumption of soft drinks is at rock bottom level even less than our neighbouring countries "akistan and #angladesh, where it is four times as much. $he last summer was particularl! sweltering one, with temperatures hitting the high %&'s in some places !et bottles were disappearing from shelves faster than the! could be replaced. In the peak season, the! found themselves short of capacit! and having to turn around their trucks faster and faster to slake the greater Indian thirst. With growth rates zooming into the double digits, bottlers have been propelled into e(panding capacities. With their bigtime plans, the multinationals have changed the face of this business, long dominated b! small

3


time businessmen. If demand continues to increase annuall! at an average of )& percent, then volumes could reach one billion cases within ten !ears.

$hese arc ambitious targets and to reach them the cola makers will have to build capacit!, infrastructure, make their bottlers more available and more affordable. $here are *. &&,&&& retailers stocking soft drinks in India. Also, soft drinks which retail at an!where between +s..&& and +s.-).&& are e(pensive when measured against purchasing power. As the! concoct their strategies, keeping an e!e on each other all the time, ultimatel! there's onl! one gu! the! have to watch out for, who will determine their fortunes the consumer. $he real race to /uench his thirst has 0ust begun.

1"2 OB>ECTIVES OF THE STUDY

$his pro0ect is based on stud! consumer behaviour towards 1oft drinks. 2b0ectives of the stud! are

 $he ob0ective is to know about the customer satisfaction level associated with the product and the

customer preference level.

 $o increase customer satisfaction and recapture the market share b! fulfilling the customer needs.

 $o stud! the factors affecting the consumption pattern.  $o stud! about the consumer preference with regard to soft drink

1"7 METHODO:O?Y OF DATA CO::ECTION =


$he data, which is collected for the purpose of stud!, is divided into two bases

Primary Source: $he "rimar! data comprises information surve! of 31tud! of Consumer #ehaviour towards

4estle and Cadbur! Chocolates5. $he data has been collected directl! from respondent with the help of structured /uestionnaires. Secondary Source:

$he 1econdar! data was collected from Internet +eferences.

Data Analysis:

$he data is anal!sed on the basis of suitable tables b! using mathematical techni/ues. $he techni/ue that I have used is bar techni/ue.

1" SCO#E OF THE STUDY @


$he new economic policies of the 6ovt. of India adopted in the mid eighties were given further impetus b! the earl! nineties. $he Indian market has undergone considerable changed as a direct conse/uence of man! of these policies and soft drink industr! is no e(ception to this. 7eeping the above  mentioned perspective in the background, the researcher has selected soft drink market, since the marketing task his became more challenging and intensive competition has opened up new vistas. Companies are evolving marketing strategies b! stud!ing the demands of the market place increasingl! penetrating into appropriate market segments introducing differentiated products to improve their market share. $he soft drink market has achieved an accelerated growth in the past decade. 1oft drinks include all t!pes of non  alcohol carbonated flavoured or otherwise sweetened beverages. $he entr! of "epsi and the reentr! of Coca  Cola in the India market arc inevitabl! facing stiff competition but the ultimate winner is customer8consumer. $his has led the researcher to stud! me perception of consumers towards different brands of soft drinks and to gauge out the promotional strategic being adopted b! the marketers to lure promiscuous bu!ers and win a larger share in the markets. $he cola wars are intensif!ing and bringing manifold changes in the soft drink industr!. $he researcher has conducted a detailed surve!, interpreting the responses to stud! the perception of the consumers. 4ow the people with changing life st!les and increase in income levels have made the soft drink a common man drink. 9iven through the e(isting s!stem of marketing of soft drink has not tapped such a big market in the interiors of the countr! speciall! the rural areas, as marketing in the suburban and rural areas is developing slowl!. :espite the soft drink industr! is growing at a ver! health! pace and stands at -;< per annum. $he market for cool drinks comprises of adults in the =* !ears age group who are largest consumers of the soft drink in the countr! followed b! !oung adults in the age group of -*)* !ears and children in the age group of > -% !ears hence, companies must develop their product and marketing strategies to suit their needs.

1"3 :IMITATION OF THE STUDY 


In attempt to make this pro0ect authentic and reliable, ever! possible aspect of the topic was kept in mind. 4evertheless, despite of fact constraints were at pla! during the formulation of this pro0ect. $he main limitations are as follows

 :ue to limitation of time onl! few people were selected for the stud!. 1o the sample of consumers was

not enough to generalize the findings of the stud!.

 $he main source of data for the stud! was primar! data with the help of selfadministered

/uestionnaires. ?ence, the chances of unbiased information are less.

 "eople were hesitant to disclose the true facts.

 $he chance of biased response can@t be eliminated though all necessar! steps were taken to avoid the

same.




CHA#TER 2 INTRODUCTION TO COMPANY PROFI'E AND COCA-CO'A ." . .< .# .$

INDUSTRY PROFI'E SOFT DRINK INDUSTRY IN INDIA HISTORY OF COCA-CO'A COCA CO'A IN INDIA MARKET MISSION 4VISSION AND OBJECTIVE OF COCA-CO'A

2"1 INDUSTRY #ROFI:E

1oft drinks are t!pical and necessar! consumer products, which are generall! consumed b! the individuals to /uench the thirst and for a good flavour, and it is considered to be the s!mbol of social status. $he two main reasons, which classif! the soft drinks under consumer products, are their eas! availabilit! and their reasonable high degree standardization. Among the listed consumer goods i.e., perishable itemsB soft drinks is considered nonessential and as a lu(ur! item. 1oft drinks can be classified into two broad categories carbonated drinks and noncarbonated drinks. #oth have enormous market. In case of carbonated beverages the effectiveness of carbondio(ide is the main factor in determining the /ualit!. Cola, lemon and orange are carbonated drinks while mango drinks come under noncarbonated categor!. A prolonged visible and sparking effervescence is sought after to produce soda taste in such drinks. $he basic constituents of soft drinks are water, sweeteners, acidulates, flavourings, colourings, foaming agents and preservatives. $he soft drink market is dominated b! a few brands. Coca Cola and "epsi products for e(ample.

10


1oft drink industr! in India has witnessed phenomenal growth in the recent past, particularl! after the e(it of CocaCola. $he e(it of CocaCola from India during the late seventies gave a bolter scope to several Indian soft drink companies to grow. $hese were a rapid growth in this industr! but each one aggressivel! competed with one another to capture a ma0or share in the market. $he competition was ver! high even in terms of advertising. $he perishable items like soft drinks need a lot of advertisement, as the! are not necessar! for the consumer. Most of the consumer consume 0ust for fun  refreshment purpose and not and for an! other special reason. Dor that reason the soft drink marketers concentrate more on the advertisement part and the! keep on designing new advertisements, which con/uer the heart of the consumer. $he! take special care in casting the popular figures. $hese soft drink markets also include some offers like tours to someplace and so on. $hese soft drink companies will sponsor for man! of the sport events in order to have good edge over the competitor as per as the publicit! is considered.

2"2 SOFT DRINK INDUSTRY IN INDIA $he entr! of carbonated soil drink into the Indian soil is relativel! new. $he credit for introducing branded soil drink goes to pure drinks private 9td, :elhi. 9ater this compan! became the franchised bottler of Coca  Cola e(port corporation. Accordingl!, in -*&, Coca  Cola made its first debut in the Indian market. $his is the stor! about the origin of soft drinks in India. After Coca E Cola, "epsi entered into the market. $he e(it of "epsi made coke the undisputed leader in the soft drinks market. $his compan! too was forced to leave India due to its non compliance with the rules and regulations of the 6overnment in -FF. $he e(it of coke becomes a boom to national manufactures and all the pla!ers started increasing their business. Among the man! national pla!ers like pure drinks Me :owels, Modem foods, 1pencer's and parle!, "arle emerged as the leader in the Indian soft drink market. It is believed that b! the end of -;. "arle captured more than F*< of the national soft drink market. In -&. "epsi re entered India and started making more noise in the market. All the same, it grabbed considerable market share from parle!. #esides this. Coke also re entered India after -> !ears of e(ile, fearing that, it cannot cling to its market leadership. "arle sold itself to Coca Cola for G%& Million 4ovember, -=. #! bu!ing over local competition the two American Cola giant share cleared up the arena and are packing all their power behind building the Indian franchise of their global girdling brands. If "epsi 11


invests +s. =&& core, Coke will be investing more than that and vice versa. $he total investment is of a size and scale that the +s. =&%; cork soft drink businesses have never seen before. #oth pla!ers see enormous potential in this countr!. Where swigging a carbonated beverage is still considered a treat virtuall! a lu(ur!. Conse/uentl! b! world standards India's per capita consumption of three servings is rock bottom less even than over neighbours "akistan and #angladesh. Where is four times as much so, the cola giants feel that per caps can onl! go up and up. As incomes improve so do life st!les a pattern the! have seen in man! of the -* countries the! sell their universal products.

2"7

HISTORY OF COCACO:A

ATLANTA BEGINNINGS (1868  18!"#:

It was -;;> in 4HW 2+7 harbor, workers are constructing the statue of the libert!. ;&& miles awa! another great s!mbol was about to be unveiled. 9ike man! people who change the histor!, J2?A4 "HM#?+$24, a civil war veteran  Atlanta pharmacist, was inspired b! simple curiosit!. ?e loved tinkering with medicinal formulas, and one afternoon, searching for a /uick cure for headaches, his stipend up a fragrant Carmel coloured li/uid in a three legged pot. When it was done, he carried it a few doors down to Jacob's pharmac!. I Icrc. the mi(ture was combined with carbonated water and sampled b! customers who all agreed this new drink was something special. 1o Jacob's pharmac! put it on sale for five cents a glass. "HM#H+$24'1 book keeper D+A47 +2#I4124 named the mi(ture C2CA  C29A and wrote it out in his distinct script. $o this da!, C2CA  C29A is written in the, same wa!. In this first !ear the compan! sold about  glasses of coca

cola a da!. A centur! later the cocacola compan!

has produced over ten billion gallons of s!rup. Knfortunatel! for "emberton, he was more of an inventor than a businessman and had no idea that the had invented one of the greatest products of the world. 2ver the course of = !ears -;;-  -;-. "emberton sold the compan! to Atlanta businessman Asa 6riggs Candlcr for the total of about G )=&&. Candler would become the compan!'s first president and the first to bring real vision to the business and the brand.

12


BE$%ND A TLANTA (18!&  1!'# :

As a Candler, a natural born salesman transformed Coca

Cola from invention to a business. 9ie knew there

were thirst! people out there and Candler found brilliant and innovative wa!s to introduce them to this e(citing new refreshment. ?e gave awa! coupons for complimentar! first tastes of Coca E Cola brand. "eople saw coca  Cola ever!where and the aggressive promotion worked. #! -;*, Candler had built s !rup plants in Chicago, :allas and 9os Angeles. Inevitabl!, the soda's popularit! led to a demand for it to be en0o!ed in new wa!s. In -;%. a Mississippi businessman named Joseph #ernhard became the first to put the drink in bottles. ?e sent of them to Candler, who responded without enthusiasm. :espite being a brilliant and innovative businessman, he didn't realize then that the heart of Coca Cola would be with portable, bottled beverage customers could take an!where. ?e still didn't realize it five !ears later when in -;, two Chattanooga law!ers, #en0amin. $homas and Joseph b. Whitehead secured e(clusive rights from him to bottle and sell the beverage for the sum of one dollar. SA)EGA*+D1NG T,EB-AN%.l!'/1!18# :

Imitation ma! be the sincerest of flatter!, but the Coca  Cola Compan! was none too pleased about the proliferation of cop!cat beverages taking the advantage of its success. $his was great brand. #oth needed to be protected. Advertising focused on the authenticit! of Coca  Cola, urging can summers to Ldemand the genuine'' and Laccept no substituteL. $he compan! also created a distinct bottle shape to assure people the! were actuall! getting a real Coca Cola. In -->, the +oot glass compan! of $reat, Indiana began manufacturing the famous contour bottle. $he counter bottle for its attractive appearance, original design and the fact that, even in the drink, !ou could identif! the genuine article. As the countr! roared into the new centur!, the Coca

Cola Compan! grew rapidl! moving into Cuba. "uerto

+ico, Drance and other countries. In -&& there were two bottles of Coca

Cola, b! -)&, there would be

about -&&&. T,E 0%%D+*)) LEGA$

"erhaps no person has more impact on the Coca  Cola compan! the +obert Woodruff In -)=, five !ears after his father Hrnest purchased the compan! from Asa Candler, Woodruff become the compan! president. While Candler had introduced the K.1. Coca  Cola, he would nearl! spend >& !ears as compan! leader introducing the beverage to the world be!ond. Woodruff was marketing genius who saw opportunities for e(pansion ever! where the captivated foreign markets with his innovative campaigns. Coca Cola traveled with the K.1. team to the -); Amsterdam

17


2l!mpics to the logo was emblazed on racing dog sleds in Canada  the walls of bull fighting arenas in 1pain. ?e pushed development  distribution of the si(pack, the open top cooler and all innovations that made it easier for people to drink Coca

Cola. When it became clear to the compan! that housewives would

be more inclined top bu! si(packs the! could open easil! at home, women were sent door to door, installing branded Coca

Cola openers, this is e(actl! the kind of Lout side the bo('L thinking that thrived under

Woodruffs leadership and it made Coca

Cola not 0ust a huge success, but a big part! of people's lives.

T,E 0A+ 2 ITS LEGA$

In -%- America entered into World War II thousands of men  women were sent overseas. $he countr!  Coca  Cola rallied behind them. Woodruff ordered that ever! man in uniform gets a bottle of Coca  Cola for * cents, wherever he is, whatever it cost the compan! -%=, 6eneral :wight :.Hisenhower sent urgent cablegram to Coca  Cola re/uesting shipment of materials for -& bottling plant. :uring the war man! Huropeans en0o!ed their first taste of beverage and when peace finall! came, Coca  Cola be placed within ''arm's reach desire'L, was coming true from the rnidf%&'s until ->&, the number of countries with bottling operations nearl! doubled. "ost war America alive with optimism  prosperit!. Coca  Cola was a part of fun, carefree America lifest!le  the imager! of its advantage happ! couples at the drive in, carefree moms driving are !ellow convertibles

is a wonderful reflection of the spirit of the limes.

A 0%+LD %r *ST%3E+S (1!6' 1!81#:

After F* !ears of amazing success with brand Coca  Cola, the compan! decided to e(pand with new flavors sprite in ->-, $A# in ->= and Dresco in ->>. $he compan!'s presence worldwide was growing rapidl! !ear after !ear, Coca

Cola found a home in more  more places. Cambodia, Montserrat, "uce,

$urke! . more advertising for Coca  Cola alwa!s an important  e(citing part of its business reall! came into its own in the F&'s and reflects a brand totall! in tune with fun, pla!fulness and freedom. $he international appeal of Coca Cola was embodied bu! -F- commercial, where a group of !oung people from all over the world gathered on a hill top in Ital! to sing LI'd like to bu! the world a cokeL. In -F;, the 'oca

Cola

Compan! was selected as the onl! compan! allowed selling packaged cold drinks in the peoples +epublic of China. DIET%-ESA NE0%-E (1!8"  1!8!#:

$he ;&'s the era of legwarmers, head bands and the fitness craze and a time of much change and innovation at the Coca  Cola Compan!. In -;-. +oberto C. 6oizucta became chairman of the board of directors  CH2 of the Coca Cola Compan!. ?e who fled Castro's Cuba in ->-. completel! overhauled the compan! with a strateg! he called Lintelligent risk takingL among his bold moves was organizing the numerous K.1. bottling 1


operations into a new public compan!, Coca e(tension of the Coca

Cola trade mark within two !ears, it had become top low calorie drink in the world,

second in success onl! to Coca taste for Coca

Cola enterprises, Inc. he also released diet coke, the ver! first

Cola. 2ne of 6oi8ueta's other incentives in -;*, was the release of new

Cola, the first change in formulation in  !ears. In taste people loved the new formula.

In the real world the! had a deep emotional attachment to the original and the! had a deep emotional attachment to the original and the! bagged and pleaded to get it back. Critics called it the biggest marketing blunder ever. #ut 6oizueta, as Warren #uffet once said, had a knack for turning L lemins into lemonadeL. $he original formula was return to the market as Coca the competition

Cola classic, the product began to increase its lead over

a lead that continues to this da!.

%A  %LA N%0 (1!!'  N%0# :

In -;;>. Coca  Cola brought thrilling refreshment to patrons of a small Atlanta pharmac!. 4ow well at ) nt centur!, the compan!'s goal is to provide that magic ever! time, in )&& countries, with each of it's )=& and ever growing brands. Coca  Cola has customers from #oston to #ahrain, drinking brands like Ambassa, Neitabela and freseolita. In the remotest corners of the globe, !ou can still find Coca

Cola.In Debruar! )&&&,

:oug :aft was named compan! chairman. Coca  Cola a huge international compan!, but :raft's vision is to have the compan! operate as a collection of smaller, locall! run business. L4o oneL, :aft points out, Ldecides to en0o! one of our products globall!L. $ hat's wh! Coca Cola committed to local markets, to pa!ing attention to what people from different cultures and backgrounds like to drink and where and how the! want to drink, liver! ten seconds. -.)>,&& people choose to reach for one of the Coca

Cola compan! brands  it is

the compan!'s mission to make the choice e(iling  satisf!ing ever! single time.

2" COCACO:A IN INDIAN MARKET Coca  Cola has started its operation in Indian market in 2ctober -=. $his has been its reentr! in the India market after withdrawal of its operation in -F&s.$he Indian market offers a strong consumer potential as ma0orit! of the population is in middle class categor! which is a strong consumer base for an! DMC6 compan! like Coca  Cola to float its range of products. Coca Cola has ac/uired the soft drink brands like $humps Kp, 6old spot, l.imca, #isleri soda etc which were floated b! parle as these products have achieved a strong consumer base and formed a brand image in

13


Indian market during the reentr! of Coca Cola in -=. $hus these products became a part of range of products of Coca Cola.

2"= VISSION AND OB>ECTIVE OF COCACO:A 3ISSI%N %) %A  %LA:

"rovide LclientsL with appropriate Ls!stems solutionsL for Leffective  profitableL business use adopting a L /ualit! management approachL maintains a ''competitive edgeL with the help of latest and user friendl! information technolog!. 4ISI%N %) %A  %LA:

$o be a proactive  service oriented business partner for influencing change  contributing to increase share owner value through a dedicated  creative team. %B5ETI4E %) %A  %LA:

$o develop a business strateg! for s!stems implementation which is Lsimple, effective  practiced'L to e(ecute in a timel! manner for bottling s!stem.

CHA#TER 7

1=


THEORETICA' BACK%ROUND ABOUT THE TOPIC $he term consumer behaviour is defined as the behaviour that consumer displa! in searching for, purchasing using, evaluating and disposing of products and services that the! e(pect will satisf! their needs. Consumer behaviour focuses on how individuals make decisions to spend their available resources time, mone!, effortB on consumptionrelated items that includes what the! bu!, wh! the! bu!, when the! bu! it, where the! bu! it, how often the! bu! it, how often the! use it, how the! evaluate it after the purchase and the impact of such evaluations on future purchases, and how the! dispose of it. Consumer #ehaviour is the stud! of individuals, groups, or organizations and the processes the! use to select, secure, and dispose of products, services, e(periences, or ideas to satisf! needs and the impacts that these processes have on the consumer and societ!. It blends from ps!cholog!, sociolog!, social anthropolog!, marketing and economics. It attempts to understand the decisionmaking processes of bu!ers, both individuall! and in groups such as how emotions affect bu!ing behaviour. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as famil!, friends, reference groups, and societ! in general. Customer behaviour stud! is based on consumer bu!ing behaviour, with the customer pla!ing the three distinct roles of user, pa!er and bu!er. +esearch has shown that consumer behaviour is difficult to predict, even for e(perts in the field. +elationship marketing is an influential asset for customer behaviour anal!sis as it has a keen interest in the rediscover! of the true meaning of marketing through the reaffirmation of the importance of the customer or bu!er. A greater importance is also placed on consumer retention, customer relationship management, personalisation, customisation and onetoone marketing. 1ocial functions can be categorized into social choice and welfare functions. Hach method for vote counting is assumed as social function but if Arrow@s possibilit! theorem is used for a social function, social welfare function is achieved. 1ome specifications of the social functions are decisiveness, neutralit!, anon!mit!, monotonicit!,unanimit!, homogeneit! and weak and strong "areto optimalit!. 4o social choice function meets these re/uirements in an ordinal scale simultaneousl!. $he most important characteristic of a social function is identification of the interactive effect of alternatives and creating a logical relation with the ranks. Marketing provides services in order to satisf! customers. With that in mind the productive s!stem is considered from its beginning at the production level, to the end of the c!cle, the consumer. 1@


$wo different kinds of consuming entities the personal consumer and the organizational consumer. 

Personal onsumer 

#u!s goods and services for his or her own use, for the use of the household or as a gift for a friend. $he products are bought for final use b! individuals, who are referred to as end users or ultimate consumers. 

%r7aniational onsumer 

Includes profit and nonprofit businesses, government agencies local, state, nationalB and institutional e.g. schools, hospitals, and prisonsB, all of which bu! products, e/uipment, and services in order to run their organizations. MARKETING CONCEPT, A BUSINESS ORIENTATION:  $he field of consumer behaviour is rooted in the marketing concept, a business orientation that evolved in

the -*&s through several alternative approaches toward doing business referred to respectivel!  -B $he "roduction Concept. )B $he "roduct Concept. =B $he 1elling Concept. %B $he Marketing Concept. *B $he 1ocietal Marketing Concept.

1) T,E P+%D*TI%N %NEPT:  $he production concept assumes that consumers are mostl! interested in product availabilit! at low

prices its implicit marketing ob0ectives are cheap, efficient product and intensive distribution.  It makes sense when consumer are more interested in bu!ing what@s available rather than wait for what the! reall! want.  $he main ob0ective is to e(pand the market.

2) T,E P+%D*T %NEPT: 

$he product concept assumes that consumers will bu! the product that offers them the highest /ualit!, the best performance, and the most features.

1

STUDY OF CONSUMER BEHAVIOUR TOWARDS SOFT DRINKS  It ensures the compan! to improve the /ualit! of its product and add new features.  $he product concept often leads to 3marketing m!opia5 that is focusing on the product rather than the

customer needs.

3) T,E SELLING %NEPT:  $he assumption of the selling concept is that consumers are unlikel! to bu! the product unless the! are

aggressivel! persuaded to do so O mostl! through 3hard sell5 approach.  $he problem in this concept is that it fails to satisf! a customer.  "romotion can be done through advertisement, sales promotion and public relation.  $oda! the selling concept is utilize be marketers of unsought products O that is which people are not willing to bu! it such as life insuranceB.

4) T,E 3A+-ETING %NEPT:  It started in -*&@s when some marketers realized we can sell more products b! determining what

consumer would bu!.  Consumer need and wants became the firm@s primar! focus.  $he marketers should made product what t can sell, instead of what it has made.

STARTING POINT FOCUS MEANS ENDS

SELLING CONCEPT

Factory  Product  Selling & Promotion  Profit through sale volume MARKETING CONCEPT

Market  Needs  Marketing  Profit via customer satisfaction

5) T,E S%IETAL 3A+-ETING %NEPT: 

:eveloping that product which benefits the societ!. :oing marketing in such a wa! that it helps !ou in

increasing !our production  also giving benefits to societ!.  $he organization should determine the needs, wants and interest of target markets and deliver the desired satisfaction more effectivel! and efficientl! then do competitors in a wa! that maintains or improves the customers and societ!@s well being 1


IMPLEMENTING THE MARKETING CONCEPT:  $o identif! unsatisfied consumer need, companies had to engage in e(tensive marketing research. $he

marketing concept underscored the importance of consumer research.  $he strategic tools that are used to implement the marketing concept include segmentation, targeting, positioning and the marketing mi(.

THE ROLE OF CONSUMER RESEARCH: 

Consumer research describes the process and tools used to stud! consumer behaviour.  $wo theoretical perspectives that guides the development of consumer research   "ositive Approach P it tend to be ob0ective and empirical, to seek caused for behaviour, and to conduct research studies that can be generalized to larger population.  Interpretivists P the research done b! Interpretivists, on the other hand tends to be /ualitative and based on small samples.

SEGMENTATION, TARGETING, AND POSITIONING: 3A+-ET SEG3ENTATI%N:  :ividing a market into distinct groups of bu!ers with different needs, characteristics or behaviour who

might re/uire separate products or marketing mi(es.  Market consists of bu!ers and, bu!ers differ in one or more wa!s. $he! ma! differ in their wants, resources, locations, bu!ing attitudes, and bu!ing practices. 3A+-ET P%SITI%NING: 

Dormulating competitive positioning for a product and a detailed marketing mi(. :eveloping a distinct image for the product or service in the mind of the consumer, that will differentiate with the competitors.

3A+-ET TA+GETING:

20

STUDY OF CONSUMER BEHAVIOUR TOWARDS SOFT DRINKS 

$he process of evaluating each market segments attractiveness and selecting one or more segments to enter.

3A+-ETING 3I9:  $he marketing mi( consists of a compan!@s service and8or product offerings to consumers and the

methods and tools it selects to accomplish the e(change. $he marketing mi( consists of four elements 1) Te ;roduct or ser
purchase benefits such as warranties and return policies. 2) Te ;rice – the list price, including discounts, allowances, and pa!ment methods. 3) Te ;lace – the distribution of the product or service through specific store and non store outlets. 4) Promotion – $he advertising, sales promotion, public relations, ad sales efforts designed to build

awareness of and demand for the product or service. CUSTOMER VALUE, SATISFACTION, AND RETENTION:  1avv! marketers toda! realize that in order to outperform competitors the! must achieve the full profit

potential from each and ever! customer. $he three drivers of successful relationship between marketers and customers are customer value, high levels of customer satisfaction, and building a structure for customer retention. 1) P+%4IDING *ST%3E+ 4AL*E:  Customer value is defined as the ratio between the customers@ perceived benefits economic, functional

and ps!chologicalB and the resources monetar!, time, effort, ps!chologicalB used to obtain those benefits. "erceived value is relative and sub0ective.  Exa!"#: Mc:onald@s Corporation to deliver the compan!@s four core standards /ualit!, service, cleanliness, and value.

2) *ST%3E+ SATIS)ATI%N: 

Customer satisfaction is the individual@s perception of the performance of the product or service in

relation to his or her e(pectations.  $he linked levels of customer satisfaction with customer behaviour identified several t!pes of customers  21

STUDY OF CONSUMER BEHAVIOUR TOWARDS SOFT DRINKS 

Loyalists Who keeps purchasing, the! are satisfied completel!.  A;ostles Whose e(periences e(ceed their e(pectations and who provide ver! positive word of mouth

about the compan! to others.  De.ectors Who feel neutral or merel! satisfied and are likel! to stop doing business with the compan!.  Terrorists Who have had negative e(periences with the compan! and who spread negative word of mouth.  ,osta7es Who are unhapp! customers who sta! with the compan! because of a non plastic environment or low prices and who are difficult and costl! to deal with because of their fre/uent complaintsQ  3ercenaries Who are ver! satisfied customers but who have no real lo!alt! to the compan! and ma! defect because of a lower price elsewhere or on impulse, def!ing the satisfactionlo!alt! rationale.  $he researches purpose that companies should strive to create apostles, raise the satisfaction of defectors and turn them in to lo!alist avoid having terrorists or hostages and reduce the number of mercenaries.

3) *ST%3E+ +ETENTI%N:  Customer retention makes it in the best interest of customers to sta! with the compan! rather than

switch to another firm.  9o!al customers bu! more products.  9o!al customers are less prices sensitive and pa! less attention to competitor@s advertising.  1ervicing e(isting customers, who are familiar with the firm@s offerings and processes, is cheaper.  9o!al customers spread positive word of mouth and refer other customer.  Customer profitabilit!focused marketing tracks costs and revenues of individual customers@ ad then

categorizes them into tiers based on consumption behaviours that are specific to the compan!@s offerings.  +ecent 1tud! advocates using 3customer p!ramid5 where customers are grouped in % ties

22


1) T$# P"a%&'( T&#  Includes heav! users who are not price sensitive and who are willing to tr! new

offerings. 2) T$# G*"+ T&#  It consists of customers who are heav! user but not as profitable because the! are

more price sensitive than those in the higher ties. Ask for discount and bu! from several providers. 3) T$# I*' T&#  It consists of customers whose spending volume ad profitabilit! do no merit special

treatment from the compan!. 4) T$# L#a+ T&#  It includes customers who actuall! cost the compan! mone! because the! claim

more attention than is merited b! their spending. MARKETING ETHICS - SOCIAL RESPONSIBILIT.: 

$he societal marketing concept O It is ver! important components of organizational effectiveness. It helps us to build good image and also increase in sales. $he converse is also true O "erceptions of a compan!@s lack of social responsibilit! or unethical marketing strategies negativel! effect consumer purchase decision.

CONSUMER BEHAVIOUR - DECISION MAKING ARE INTERDISCIPLINAR.:  Consumer #ehaviour was a new field in the mid of late ->&, because the marketing theorists

borrowed the concepts from other scientific disciplinar! that is  Psycolo7y $he stud! of the individual, Sociolo7y$he stud! of groups, Social Psycolo7y$he stud! of how an individual operates in groups, Antro;olo7y  $he influence of societ! on the individual, and Economics $o form the basis of the new marketing discipline.  Man! Harl! theor! based on economic theor! on the notion that individuals are rationall! to ma(imize

their benefits. A SIMPLIFIED MODEL OF CONSUMER DECISION MAKING:  $he process of consumer decision making can be viewed as three distinct but interlocking stages the

input stage, the process stage, and the output stage. 

T$# I'!(% S%a/#  Influences the consumer@s recognition of a product need and consists of two

ma0or sources of information, the firm@s marketing efforts the product itself, its price, its promotion and where it is soldB and the e(ternal sociological influences on the consumers.

27

STUDY OF CONSUMER BEHAVIOUR TOWARDS SOFT DRINKS  T$# P*0# S%a/#  It is the model focuses on how consumers make decisions. $he ps!chological

factors inherent in each individual.  T$# O(%!(% S%a/#  It is the consumer decision making model consists of two closel! related post decision activities.

CHA#TER  RESEARCH METHODO'O%Y $his chapter describes the methodolog! of the stud!. $his pro0ect is based on information c ol le ct ed f ro m p ri ma r! s ou rc es . Af te r t he d et ai le d s tu d!, a n a tt emp t h as b ee n m ad e to present comprehensive anal!sis of consumption of Cadbur! and nestle chocolatesco n s u m e d b ! t h e p e o p l e . $he data had been used to cover various aspects like consumption, consumer@s preference and customer@s satisfaction regarding Cadbur! and 4estle chocolates. In collecting re/uisite data and information regarding the topicselected, I went to the residents of Chembur and collected the data. 2


 Sur
$he stud! is a cross sectional stud! because the data were collected at a single po in t of time. Dor the purpose of present stud! a related sample of population was selected on the basis of convenience.

 Sam;le Sie and Desi7n:

A sample of -&& people was taken on the basis of convenience. $he actual co ns um er s were contacted on the basis of random sampling.

 +esearc Period:

+esearch work is onl! carried for ) or = weeks.

 +esearc Instrument:

$his work is carried out through selfadministered /uestionnaires. $he /uestions included were open ended, dichotomous and offered multiple choices 

Data ollection:

$he data, which is collected for the purpose of stud!, is divided into ) bases

Primary Source:

$he "rimar! data comprises information surve! of 31tud! of Consumer #ehaviour towards 4estle and Cadbur! Chocolates5. $he data has been collected directl! from respondent with the help of structured /uestionnaires.

Secondary Source:

$he 1econdar! data was collected from Internet +eferences.

Data Analysis:

23


$he data is anal!sed on the basis of suitable tables b! using mathematical techni/ues. $he techni/ue that I have used is bar techni/ue.

CHA#TER  FINDIN%S AND ANA'YSIS #." #. #.< #.# #.$

ANA'YSIS OF DATA FINDIN%S CONC'USION SU%%ESTIONS AND RECOMMENDATIONS

"1 ANA:YSIS OF DATA -B Consume of the 1oft :rinks Ans Consumption of 1oft :rinks

es

4o

2=


4umber of +espondent

&

-&

Co+s/m1t*o+ o& So&t Dr*+=s 10 Yes

No

0

$he above table depicts that &< of the consumers consume soft drinks.

2 Fre&e'c of Co's&$+tio' Fre&e'c of Co's&$+tio'

4umber of +espondents

:ail!

=&

$wice in a week

%)

2nce in a week

-)

2nce in a month

&>

2@


Fre>/e+0, o& Co+s/m1t*o+

= 12

D!i, T.ice i' ! .ee)

70

O'ce i' ! .ee) O'ce i' ! $o'th

2

$he above table depicts that =&< of the consumers consume soft drink :ail! and the %) < of consumers consume soft drink $wice a week.

=B Davourite 1oft drinks Ans Attributes

"reference b! Consumers

Coca Cola

->

$umpsKp

==

1prite"epsi

=)

F up

)

:ew

)

2


2thers

*

Fa5o/r*te So&t Dr*+=s 22 Coc!Co,!

T&$+s U+

3

1=

S+rite#e+si

@ &+

De.

Others

72 77

$he above table depicts that == Consumers consume $humps Kp, =) Consumers consume 1prite, -> Consumers consume CocaCola

 #ro(&ct #rice is A
Attri4&tes


Affordable

>

Costl!

--

9esser

*

Can@t 1a!

*

2


A?ora82e Pr*0e 0 @0 =0 30

A
0 =

70 20 10

11

0 A
Cost,

3

3

:esser

C!'t S!

$he above table depicts that > respondents can afford, --respondents feel the product is costl!, * respondents feel the product is less costl! than it should be. * respondents cannot sa! about the product price"

*B Dactors Affecting "urchase

Dactors


$aste

%=

Ruenching $hirst

--

1trong

-&

6as Content

=

#rands Ambassadors

=

70


2thers

)&

Fa0tors A?e0t*+ P/r0)ase 30 3 0 73 70 23 20 13 10 3 0

7

F!ctors A
10

7

7

$he above table depicts that %= Consumers consume the product preferring the $aste, -consumers consume the product to /uench the thirst and = consumers consume the product for its gas content.

>B +ole of flavour in the "roduct "romotion

Attributes


Hfficient

>&

Ner! Hfficient

-%

4either Hfficient nor Inefficient

-=

Inefficient

=

71


F2a5o/r *+ t)e Pro/0t

17

Ecie't

7

Ver Ecie't Neither Ecie't 'or I'ecie't

1

I'ecie't =0

$he above table depicts that >& consumers feel the flavour is efficient, -%consumers feel the flavour is ver! efficient, -= consumers feel the flavour is neither efficient nor inefficient, = consumers feel the flavour is inefficient.

FB. 2pinion on packaging of the product

Attributes

4o of "reference

Ner! 6ood

-)

6ood

>

4either 6ood nor #ad

;

72


Pa0=a*+ o& t)e Pro/0t 

Ver ?oo(

12

?oo( Neither /oo( 'or B!(

=

$he above table depicts that -) consumers feel that "ackaging of the "roduct is ver! good, > consumers feel "ackaging of the "roduct is good, ; consumers feel the "ackaging of the "roduct is neither good nor bad

;B. "ack of 1oft :rinks "referred

"romotional 2ffers


Dree 6ifts

)>

"rice 2ffer

%;

An! other

->

77


Ser*es " =0 30 0 Series 1 70  20 2=

10

1=

0 Free ?ifts

#rice O
A' Other

According to the above anal!sis it is concluded that out of sample of & people who like to consume 1oft :rinks )> are attracted b! free gifts, %; b! prices offers while -> were attracted b! some other reasons.

B. Media of Advertisement

Media of Advertisement


$elevision

F&

4ewspaper

*

#rochures

*

?oarding

*

:ispla!

=

Ingredients

)

7


Me*a O& A5ert*seme+t 0 @0 =0 30 0 70 20 10 0

Me(i! Of A(6ertise$e't

@0

3

3

3

7

2

According to the above anal!sis it is concluded that out of sample of & people who like to consume 1oft :rinks F& are attracted b! $elevision, * b! 4ewspaper while * were attracted b! #rochures, * b! ?oarding, * b! :ispla! and ) b! ingredients.

-&B Consumers #rand 9o!alt!

Br!'( :o!,t Actio's


"ostpone !our "urchase

==

1witch 2ver to other #rands

-*

6o to 2ther 1hop for 1earch of %) "referred #rand

73


Bra+ 'o,a2t, 3 0 73 70 23 20 13 10 3 0

2

77 13

Br!'( :o!,t

According to the above anal!sis it is concluded that out of sample of & people who like to consume 1oft :rinks == will postpone !our purchase, -* will switch over to other brands, %) go to other shop

--B +eaction of Consumers if new #rands is Introduced

Shift to Ne. Br!'(s of the 4umber of +espondents #referre( #ro(&ct 4o, 4ot at all

)F

Ma! Consider

-&

4o, shall not

-=

Can@t 1a!

%&

7=


30 3 0 73 70 23

0

20 13

2@

10

10

17

3 0 No% Not !t !,,

M! Co'si(er

No% sh!,, 'ot

C!'t S!

-)B +easons for 4ot 1witching over to 2ther #rands Ans. All the consumers wh! the! continue to bu! the old #rand gave various reasons. $he most important reasons give b! the consumers were  $aste8Dlavour  #rand  Image  Rualit!  "ackaging

7@


"2 FINDIN?S

 Consumer +esearch

Consumer research deals with consumer and their problems and solution to the problems. In this I came to know about the consumers need and e(pectation levels regarding products and ascertainable levels of consumer satisfaction.  "roduct +esearch

Knder "roduct research I came to know about the Modification which consumers want as to the /ualit!, packing, shape, colour, and /uantit! etc of their favourite chocolate  "ricing +esearch

7


$his includes abilit! to consume, to pa! for the product, how much a person can spend on his8her favourite 1oft :rinks. In this i have tried to find out consumers price e(pectations and reactions.  Advertising +esearch

Knder this I have concluded that whether the advertisement appeals the Consumers or not. $his also includes evaluating and selecting the proper mediami( and measuring advertising effectiveness.

"7 CONC:USION

-. $he important factors that influence the purchase decisions for a soft drink is the taste and flavour.

). #esides the factors mentioned above the other important factors that Influence the purchase decisions were found to be advertising and "rice

&= 1ales promotion program taken up b! the compan! is also popular. Among the respondents. $he

product is ver! much popular for its eas! availabilit!

7


" SU??ESTIONS RECOMMENDATIONS

1uggestions have been made based on certain factors as highlighted b! the stud!. -. Hfficient "romotional activities pertaining to consumers are to be taken up.

).

Compan! should improve the /ualit! of packaging.

=.

Introduction of a new flavour is suggested to make the product promotion more efficient.

%. It is suggested that the compan! should increase the usage of Internet for further "romotional activities.

CHA#TER 3 B*82*ora1),

 http88www.scribd.com  http88www.cococola.com  http88www.google.com  http88en.wikipedia.org8wiki8preference

0

kupdf.com_a-study-on-consumer-behaviour-towards-soft-drinks.pdf

Recommend Documents