EXECUTIVE SUMMARY Soft Drinks were common preference among all the individuals. With the changing lifestyle and income levels, people are shifting their consumption patterns. Market Research is based on CONSUMPTION PATTERNS parameters like: In consumption patterns, we want to highlight the factors which influence the co nsumer to buy soft drinks. Various factor which influence the consumption of bev erages are 1. Health drink 2. Status symbol. 3. T a st e 4. V a ri e ty 5. Brand ambassador 6. Advertising campaign. The basic subject matter of the research, analysis of Soft Drinks is focused to study the mind/taste of different age group of people. The study starts with determining the major players in the soft drinks, their ov erall consumption pattern among the people and ends up with the conclusion as pe r the state of mind of the average rational human being.
CHAPTER - 1 INTRODUCTION
BEVERAGE What is beverage? A drink, or beverage, is a liquid specifically prepared for human consumption. I n addition to basic needs, beverages form part of the culture of human society. Or
Any liquid suitable for drinking; "may I take your beverage order?" Or A liquid to consume, usually excluding water; a drink. This may include tea, cof fee, liquor, beer, milk, or soft drinks Types of beverage The various types of beverage are: • Alcoholic beverages • Non-Alcohol beverages • Soft drinks • Fruit juice • Hot beverages • O th e r 1. Alcoholic beverages An alcoholic beverage is a drink containing ethanol, commonly known as alcohol, although in chemistry the definition of an alcohol includes many other compounds . Alcoholic beverages, such as wine, beer, and liquor have been part of human cu lture and development for 8,000 years. 2. Non-alcohol beverages Non-alcoholic beverages are drinks that would normally contain alcohol, such as beer and wine but are made with less than .5 percent alcohol by volume. The cate gory includes drinks that have undergone an alcohol removal process such as nonalcoholic beers and de-alcohol zed wines. Non-alcoholic variants: • Low alcohol beer • Non-alcoholic wine • Sparkling cider 3. Soft drinks The name "soft drink" specifies a lack of alcohol by way of contrast to the term "hard drink" and the term "drink", the latter of which is nominally neutral but often carries connotations of alcoholic content. Beverages like colas, sparklin g water, iced tea, lemonade, squash, and fruit are among the most common types o f soft drinks, while hot chocolate, hot tea, coffee, milk, tap water, alcohol, a nd milkshakes do not fall into this classification. Many carbonated soft drinks are optionally available in versions sweetened with sugars or with non-caloric s weeteners. 4. Fruit juice Juice is a liquid naturally contained in fruit or vegetable tissue. Juice is pre pared by mechanically squeezing or macerating fresh fruits or vegetables without the application of heat or solvents. For example, orange juice is the liquid ex tract of the fruit of the orange tree. Juice may be prepared in the home from fr esh fruits and vegetables using variety of hand or electric juicers. Many commer cial juices are filtered to remove fiber or pulp, but high pulp fresh orange jui ce is a popular beverage. Juice may be marketed inconcentrate form, sometimes fr ozen, requiring the user to add water to reconstitute the liquid back to its "or iginal state"
5. Hot beverages Hot beverages, including infusions. Sometimes drunk chilled. Coffee-based beverages
Cappuccino Coffee Espresso Café au lait Frappé Flavored coffees (mocha etc.) Latte Hot chocolate Hot cider Mulled cider Tea-based beverages Flavored teas (chai etc.) Green tea Pearl milk tea Tea Herbal teas Yerba Mate Roasted grain beverages Sanka
6. Other Some substances may either be called food or drink, and accordingly be eaten wit h a spoon or drunk, depending on solid ingredients in it and on how thick it is, and on preference: • S ou p • Y og u rt STUDY OF GROWTH OF SOFT DRINK MARKET SOFT DRINKS Carbonated drinks are dominated by artificial flavors based on cola, orange and lime with Pepsi and coca-cola dominating the market. The entire part of the drink is based on its artificial flavors and sweetening agents as no natural jui ce is used. MARKET • Cola Cola prod produc ucts ts acco accoun unt t for for near nearly ly 61-6 61-62% 2% of the the tota total l soft soft drin drinks ks mark market et. . • Two gl global ma majors’ Pe Pepsi an and co coke do dominate th the so soft dr drink ma market. • NCAE NCAER R surv survey ey says says 91% 91% of soft soft drin drink k in the the coun countr try y is in the the lowe lower, r, lowe lowe r middle and upper middle class people. • The The mark market et is wort worth h arou around nd Rs.5 Rs.500 000 0 cror crores es with with grow growth th rate rate of arou around nd 101015%. • The The annu annual al per per capi capita ta cons consum umpt ptio ion n in in Indi India a is only only abou about t 6 bott bottle les s visvisa- Vis 340 bottles in the U.S. • The The prod produc ucti tion on as soft soft drin drinks ks has has inc incre reas ased ed from from 5670 5670 mill millio ion n bott bottle les s in 1998-99 to 6230 million bottles in 1999-2000 industry source. • Grow Growth th mark market et this this year year is expe expect cted ed to be 10-1 10-15% 5% in valu value e term terms s and and 20-2 20-2 2% in volume terms. However, the market for carbonated drinks is stagnating and not growin g as expected.
MAJOR PLAYERS IN SOFT DRINKS SEGMENT
COCA COLA: thanda matlab coca cola!!!
Coca cola has truly remarkable heritage. From a humble beginning in 1886 i t has now become the flagship brand of largest manufacturer, distributor of non alcoholic beverages in the world. In India, coca cola was the leading soft drink till 1977 when govt. policies nec essitated its departure. Coca cola has made its return to the country in 1993.an d made significant investment to ensure that the beverage is available to more a nd more people in remote as well as inaccessible parts of the world. Coca cola returned to India in 1993 and over the past ten years has captured the imagination of the nation, building strong association with cricket, the thrivi ng cinema industry, music etc. coca cola has been very strongly associated with cricket, sponsoring the world cup in 1996. In 2002, coca cola launched the campaign,”Thanda Matlab coca cola”. in 2003,coke was available for just rs,5 crores in the country.
FANTA
: GHOONTH BHAR SHARARAT KAR LEY!!!
Fanta entered the Indian market in year 1996 under the coca cola brand .ov er the years, Fanta has occupied a strong market place and is identified as “the fun catalyst”. Fanta stands for its vibrant color, tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouragi ng one to indulge in the moment.
LIMCA: LIME AND LEMONI!!!
Drink that can cast a tangy refreshing spell on anyone, anywhere. Born in 1971, Limca has been the original thirst choice, of millions of consumers for over th ree decades. The brand has been displaying healthy volume growing year on year and limca cont inues to be leading flavoring soft drinks in the country. Dive into the zingy refreshment of limca and walk away a new person. SPRITE: SPRITE BHUJAYE PYAAS BAKI SAB BAKWAAS!!!
World wide sprite ranked as no.4 soft drink and is sold in more than 190 countri es In India, sprite was launched in year 1999 and today it has grown to be one o f the fastest growing soft drinks, leading clear lime category. Today sprite is perceived as a youth icon. With strong appeal to youth sprite ha s stood for a straight forward and honest attitude. Its clear crisp hingtaste en courages today’s youth to trust their instincts, influence them to be true who t
hey are and to obey their thirst. THUMS UP: TASTE THE THUNDER!!! Strong cola taste, exciting personality. Thums up is a leading carbonated soft drink and most trusted brand in India. Ori ginally introduced in 1977, thums up was acquired by the coca cola company in 19 93. Thums up, is, known for strong, fizzy taste and its confident, mature and unique ly masculine attitude. This brand clearly seeks to separate the man from the boy s.
PEPSI:
YEH DIL MAANGE MORE!!!
Pepsi cola is a carbonated beverage that is produced and manufactured by Pepsi c o. It is sold in stores, restaurants and from vending machines. The drink was fi rst made in the 1890’s in North Carolina. The brand was trademarked on June 16, 1903.There have been many Pepsi variants p roduced over the years. • • • • • • • • • • •
Diet Pepsi Crystal Pepsi Pepsi twist Pepsi max Pepsi samba Pepsi blue Pepsi gold Pepsi holiday spice Pepsi jazz Pepsi x(available in Finland & brazil) Pepsi next(available in Japan & south Korea)
CHAPTER - 2 RESEARCH METHODOLOGY
METHODOLOGY Every project work is based on certain methodology, which is a way to systematic ally solve the problem or attain its objectives. It is a very important guidelin e and lead to completion of any project work through observation, data collectio n and data analysis. Accordingly, the methodology used in the project is as follows: • Defining the objectives of the study • Fram Framin ing g of of que quest stio ionn nnai aire re keep keepin ing g obj objec ecti tive ves s in in min mind d (co (cons nsid ider erin ing g the the obj obj ectives) • Feedback from the respondents • Analysis of feedback • Conclusion & findings PURPOSE OF THE STUDY The main aim of this research study is to analyze the preference of people (of d ifferent age groups) on consumption patterns of carbonated Soft Drinks. OBJECTIVE OF THE STUDY • To stud study y the the pref prefer eren ence ces s of the the peop people le for for soft soft drin drinks ks acco accord rdin ing g to age age group. • To find find out out the the fact factor ors s that that infl influe uenc nces es the the cons consum umer er’s ’s cons consum umpt ptio ion n of so ft drinks. • To dete determ rmin ine e whic which h alte altern rnat ativ ive e peop people le pref prefer er othe other r than than soft soft drin drink. k. SCOPE OF THE STUDY • Seasonal drinks are not considered in the study. • We are not considering water & alcoholic drinks. REVIEW OF LITERATURE Taste or health: A study on consumer acceptance of cola drinks This study examined the relative contributions of taste and health consideration s on consumer liking and purchase intent of cola drinks. Eight types of commerci al cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits. Data were analyzed using factor analysis. Results revealed that purchase intent of cola drinks was strongly related to degree of liking and to several key sensory attributes including taste, drinks flavor and greasiness. These variables merged as the first factor in the analysis, sugges ting that consumers perceive these characteristics as being most important in th eir choice of cola drinks. Factor 2 described a health dimension and was related to respondents attitudest. Factor 3 comprised two remaining sensory attributes (color and crunchiness), which apparently were of minor importance to the respo ndents. These data suggest that in spite of current concern about reducing dieta ry fat, health remains secondary to taste in the selection of cola drinks for co nsumers in this population. Source-Beverly J. Tepper and Amy C. Trail Journal of Food Science and Technology , 15 September 1998
RESEARCH DESIGN A research design is a framework or blueprint for conducting the marketi ng research project. It specifies the details of the procedures necessary for ob taining the information needed to structure and/or solve marketing research prob lem. The research design used in this project is a DESCRIPTIVE DESIGN. DESCRIPTIVE STUDY as the name implies is designed to describe something-for exam ple the characteristics of users of a given product, the degree to which the pro duct use the varies with income, age. SELECTION OF SAMPLE SIZE: For the study, a sample size of 120 has been taken into consideration. The aim was to collect 120 samples for the analysis. The samples should be such that they are consumers of soft drinks. We also tried to get an adequate ratio o f men and women in the samples. The main demographics targeted were the younger age group as they are one who consumes more of soft drinks. Also we tried to foc us more on the college going crowd and young professionals. Buyers who have been consuming soft drinks were better able to answer the questi ons regarding the influencing factors and the reasons for their consumption and purchase. SOURCES OF DATA COLLECTION: PRIMARY DATA: Questionnaire: Primary data was collected by preparing questionnaire and the peo ple were requested to fill them.
DATA ANALYSIS For this project we will use correlation analysis (chi-square test) for data ana lysis. Correlation of the various variables was done with each other (for e.g. A ge vs consumption, frequency vs quantity etc). This activity basically helped us in identifying the perception and connotations of people towards various soft d rinks brands.
CHEPTER - 3 DATA ANALYSIS & FINDINGS
OCCUPATION OF RESPONDENT vs OCCASION WHEN PEOPLE CONSUME SOFTDRINK CROSSTABULATI ON. Null hypothesis: There is no significant relationship between occupation and occ asion. Alternative hypothesis: There is significant relationship between occupation and occasion. Level of significance: 0.05 occasi occasion on when when peop people le consume consume softdr softdrink ink feel th thirsty parties or or ce celebration just like that occupation of respondent 101 Expected Count bu s i ne s s C o un t Expected Count se r v ic e C o un t 1 Expected Count T ot a l C o un t 23 23 Expected Count 23.0
Total Total fast fo food or or di dinner
s t ud e nt C ou n t
21
17
29
1 9. 4 1 1 .5 3 2 .1 32 2 3 .0
2 6. 9 0 2.1 4 2.9 12 0 4 2. 0
3 5 .4 4 2.8 11 3.9
1 0 1. 0 8 8 .0
1 9.4 3 1 .5 3 2 .1 42 3 2. 0
34
1 1. 0
12 0 .0
Chi-Square Tests Va l u e df Asymp. Sig. (2-sided) Pearson Chi-Square 5. 8 40 ( a) 6 Likelihood Ratio 7 .7 3 3 6 . 25 8 Linear-by-Linear Association .2 4 9 1 N of Valid Cases 1 20
. 4 41 . 6 18
a 8 cells (66.7%) have expected count less than 5. The minimum expected count i s 1.53. Symmetric Measures Va l u e Approx. Sig. Nominal by Nominal Contingency Coefficient .215 . 44 1 N of Valid Cases 1 20 a Not assuming the null hypothesis. b Using the asymptotic standard error assuming the null hypothesis. Since p value is greater than alpha i.e. o.05 (95% confidence level), therefore there is no association between occupation and occassion. AGE OF RESPONDENT vs
FREQUENCY OF CONSUMPTION IN A WEEK CROSSTABULATION
Null hypothesis: There is no significant relationship between age and frequency. Alternative hypothesis: There is significant relationship between age and freque ncy. Level of significance: 0.05 frequency of consumption in a week 1 -2 2- 5 above 5 age of respondent 1 5 -2 5 Co u nt 52 40 Expected Count 52.5 4 1.1 1 1. 4 26 - 3 5 C o u nt 4 6 0 10 Expected Count 5.0 3 .9 1.1 36 - 5 0 C o u nt 4 1 0 5 Expected Count 2.5 2 .0 .5 T ot a l C o un t 60 47 13 1 20 Expected Count 60.0 4 7 .0 1 3. 0 1 20 . 0
To t a l 13 1 0 5. 0
105
1 0 .0 5 .0
Chi-Square Tests Va l u e df Asymp. Sig. (2-sided) Pearson Chi-Square 4. 5 70 ( a) 4 Likelihood Ratio 6 .0 0 7 4 . 19 9 Linear-by-Linear As Association 1. 4 19 1 N of Valid Cases 1 20
. 3 34 .2 3 4
a 5 cells (55.6%) have expected count less than 5. The minimum expected count i s .54. Symmetric Measures Va l u e Approx. Sig. Nominal by Nominal Contingency Coefficient .192 . 33 4 N of Valid Cases 1 20 a Not assuming the null hypothesis. b Using the asymptotic standard error assuming the null hypothesis. Since p value is greater than alpha i.e. o.05 (95% confidence level), therefore there is no association between purchase frequency and age. AGE OF RESPONDENT vs QUANTITY PEOPLE PREFER TO BUY CROSSTABULATION Null hypothesis: There is no significant relationship between age and quantity. Alternative hypothesis: There is significant relationship between age and quanti ty. Level of significance: 0.05 quan quanti tity ty peop people le 300 ml 500 ml age of respondent 1 5 -2 5 Expected Count 26 - 3 5 C o u nt 3 Expected Count 36 - 5 0 C o u nt 1 Expected Count T ot a l C o un t 66 39 Expected Count 66.0
pref prefer er to buy buy 1 l tr 1.5 ltr Co u nt 62 5 7. 8 3 4.1 6 1 5 .5 3 .3 2 1 2 .8 1 .6 11 4 3 9 .0 1 1. 0
Chi-Square Tests Va l u e
df
Asymp. Sig. (2-sided)
Tota Total l 31 9 .6 0 .9 1 .5 120 4 .0
9 3 .5 10 .3 5 .2 1 2 0. 0
3 10 5 .0 1 0 .0 5.0
105
Pearson Chi-Square 10 . 52 2 (a ) 6 .1 0 4 Likelihood Ratio 8 .5 6 3 6 . 20 0 Linear-by-Linear As Association 5. 7 85 1 .0 1 6 N of Valid Cases 1 20 a 8 cells (66.7%) have expected count less than 5. The minimum expected count i s .17. Symmetric Measures Va l u e Approx. Sig. Nominal by Nominal Contingency Coefficient .284 . 10 4 N of Valid Cases 1 20 a Not assuming the null hypothesis. b Using the asymptotic standard error assuming the null hypothesis. Since p value is greater than alpha i.e. o.05 (95% confidence level), therefore there is no association between age and quantity. FREQUENCY OF CONSUMPTION IN A WEEK vs QUANTITY PEOPLE PREFER TO BUY CROSSTABULAT ION Null hypothesis: There is no significant relationship between frequency and quan tity. Alternative hypothesis: There is significant relationship between frequency and quantity. Level of significance: 0.05 quan quanti tity ty peop people le pref prefer er to buy buy Tota Total l 300 ml 500 ml 1 ltr 1.5 ltr frequency of consumption in a week 1 -2 Co u nt 1 60 Expected Count 33.0 1 9.5 5 .5 2- 5 C ou n t 22 20 3 2 Expected Count 25.9 1 5.3 4 .3 above 5 Count 6 2 4 1 Expected Count 7.2 4 .2 1.2 T ot a l C o un t 66 39 11 4 120 Expected Count 66.0 3 9 .0 1 1. 0 4 .0
38
17
2 .0 47 1 .6 13 .4
60 . 0
4
47 . 0 13 . 0
1 2 0. 0
Chi-Square Tests Va l u e df Asymp. Sig. (2-sided) Pearson Chi-Square 13 . 25 5 (a ) 6 .0 3 9 Likelihood Ratio 1 0. 8 77 6 . 0 92 Linear-by-Linear As Association 5. 3 99 1 .0 2 0 N of Valid Cases 1 20 a 6 cells (50.0%) have expected count less than 5. The minimum expected count i s .43.
Symmetric Measures Va l u e Approx. Sig. Nominal by Nominal Contingency Coefficient .315 N of Valid Cases 1 20
. 03 9
a b
Not assuming the null hypothesis. Using the asymptotic standard error assuming the null hypothesis.
Since p value is less than alpha i.e. .05 (95% confidence level), therefore h0 i s rejected. This shows that there is high association between purchase frequency and SKU or quantity packs. This is an indication of the fact that people prefer ring smaller SKUs usually purchase more as compared to others.
CONCLUSION Following are the concluding points taken into consideration after the conduct o f the research study: Maximum consumption of soft drink in a week is 1-2 times. Most of the people prefer to buy 300 ml bottle. Most of the people consume without any occasion(Just Like That) The most favorable characteristic is taste, which induces people to buy soft drink. The most preferable alternative for soft drink is fruit juices. By the research we found out that there is no effect of advertisement an d brand ambassador on the purchase of soft drink.
ANNEXURE
QUESTIONNAIRE PERSONAL DETAILS Name Age Gender Occupation
- _________________ - 15-25 26-35 36 - 50 - Male Female - Student Business
Se r vi c e
Hello! We are the student of DBIM, VNSGU and we are required to submit project o n a comparative study of consumption of Soft Drinks. For the purpose, we are con ducting the survey. Will you please take a few minutes to answer some questions? We assure you that your answers will be kept completely confidential. Q1. Frequency of consumption of your preferred drink in a week? a) 1-2 1-2 time times s b) 2-5 2-5 time times s
Q 2. a) d)
What qu quantity do do yo you us usually pr prefer fer to to bu buy? 300 ml b) 500 ml bottle 1.5 litre
c)
Q3. On what occasions, do you often consume the Soft Drinks? a) Feeling Thirsty b) Parties / Celebrations d/ dinner d) Without any reason (just like that) Q4. What induces you to buy Soft Drinks? a) Price Price with with quanti quantity ty b) Health Health Drink Drink d) Taste
c) Abov Above e 5
1 l i t re
c) with fast foo
c) Status Status symbol symbol
e) Variety
Q5. If not a Soft Drink, which other beverage (other than water) tops your mind? a) hot beverages b) Milk based(shakes/lassi) c) fruit juice Q6. How do you view Soft Drinks? a) As a health drink c) As an aid to put off thirst _______
b) As a status symbol d) Any other, please specify
_
Q7. Do advertisements affect your purchases? a) Yes b) No Q8.Through which medium did you come to know about your preferred soft drink bra nd? a) Hoardings and banners b) Newspaper and magazines c) T V /r a di o d) Word of mouth e) Others …………….. Q9. Do brand ambassador affect your purchases? a) Yes b) No Q10. Name any three brands of Soft Drinks that are there in your mind at present ? Soft Soft Drin Drinks ks: : 1.__ 1.____ ____ ____ ____ ____ ____ ____ __ 2. _____ _______ ____ ____ ____ ___ _ 3. ____ ______ ____ ____ ____ ____ ____ __ BIBLIOGRAPHY
http://en.wikipedia.org/wiki/Beverage
www.foodindustryindia.com http://fnbnews.com/article/detarchive.asp?articleid=25105§ionid=3 http://fnbnews.com/article/detarchive.asp?articleid=24983§ionid=3 http://www.foodindustryindia.com/newfood/detailnews.jsp?n=Xtazy,%20anoth er %20energy%20drink%20for%20the%20Indian%20market&id=598 http://fnbnews.com/redfr.asp?fn=/other/aboutus.asp&title=About%20Us#Food &beverage
