Major Project Report On “A STUDY OF CONSUMER PREFERENCES BETWEEN COKE & PEPSI IN NORTH –WEST DELHI REGION” Submitted In Partial Fulfilment of the Requirement Of Bachelor of Business Administration Internal Guide Submitted By Dr. Deepali Saluja Anubhav gupta Assistant Professor 06161201711 2011-14
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Major Project Report
On
“A STUDY OF CONSUMER PREFERENCES BETWEEN COKE & PEPSI IN NORTH –WEST DELHI REGION”
Submitted In Partial Fulfilment
of the Requirement
Of Bachelor of Business Administration
Internal Guide Submitted By
Dr. Deepali Saluja Anubhav guptaAssistant Professor 06161201711
2011-14
Submitted to:Banarsidas Chandiwala Institute of Professional Studies, Dwarka, New Delhi
(Affiliated to Guru Gobind Singh Indraprastha University)
BONAFIDE CERTIFICATE
This is to certify that the project work done on “A STUDY OFCONSUMER PREFERENCES
BETWEEN COKE & PEPSIIN NORTH - WEST DELHI REGION” Submitted to Guru
Govind Singh Indraprastha University, Delhi by ANUBHAV GUPTA in Partial fulfillment of
the requirement for the award of degree of Bachelor of Business Administration, is a bonafide
work carried out by him under my supervision and guidance. This work has not been submitted
anywhere else for any other degree. The original work was carried during _____________to
______________
He has worked under my guidance.
-----------------------
Dr Deepali Saluja
PROJECT GUIDE (INTERNAL)
DATE:
COUNTER SIGNED BY:
------------------------
DR. SATISH TANEJA
DIRECTOR
DATE:
ACKNOWLEDGEMENT
It is my proud privilege to put on record my gratitude to all those who have been the source of
guidance, co-operation and held during my course curriculum.
This project has been a great learning experience for me. It has helped to apply my theoretical
knowledge into practical field.
I would like to thank Dr Deepali Saluja project guide who taught me various things and gave me
necessary information to accomplish this project.
I would also like to thank my friends who have assisted me in the process where ever I got stuck.
The learning during the period was immense and valuable.
Anubhav gupta
06161201711
TABLE OF CONTENTS
S.NO PARTICULARS PAGE NO.
1Executive Summary
2
Plan of the Research (Chapters)1.1 Introduction1.2 Objective of the study1.3 Literature review
3
Research Methodology: Universe & Sources of data Sample size Methods of data collection Instrument used Tools and techniques of analysis
4 Data Collection and Data Analysis
5 Findings & Conclusions
6 Suggestion/ Recommendation
7 Bibliography,
8 Annexures
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
This project is an extensive research on the marketing strategies of the two carbonated beverages
giants Pepsi and Coca Cola. It covers an extensive survey and depicts all graphs, fact and figures
of two companies. It begins with the introduction of carbonated beverages industry and
introduction of these two companies of carbonated beverages industry. It covers some of the
major strategies adopted by Pepsi and Coca-Cola like their pricing policy, sales promotion and
advertising policy, distribution policy etc. The project has been made interesting with the
inclusion of the topics, which covers the 4P’s of marketing.
The major players in the carbonated beverages industry in India are Coke and Pepsi. Pepsi holds
the major market share followed by Coke. They have a cut throat competition between
themselves. Whatever strategy is followed by one company, it is copied by the other. Sample of
to brands were selected on the basis of there uses and notice capability.
The most basic objectives of surveying program include the following:
To determine the customer perception towards the carbonated beverages.
To determine the number of people who prefer to buy any of the carbonated beverages.
To know about the percentage of males and females aware about the brands.
To create a top of mind awareness about COCA COLA and PEPSI in NORTH-WEST
DELHI REGION, by providing the information to consumers.
i) Primary research: A primary research was conducted. Questionnaire was prepared
and covers the following areas Rohini sector- 3,4,5 and sector 11, Pitampura etc.. of
North west Delhi Region.
ii) Secondary research: Data was conducted from websites and catalogues to understand
the product of the different players. The data collected from the websites and books
was good enough to be included in the study analyzed.
FINDINGS AND CONCLUSIONS
These are based on the data analysis presented in earlier chapter and in the later half of this chapter recommendations are given. Also Conclusions are made on the basis of this project.
INTRODUCTION
INTRODUCTION
In the modern urban culture consumption of carbonated beverages particularly among younger
generation has become very popular. Carbonated beverages in various flavors and tastes are
widely patronized by urbane population at various occasions like dinner parties, marriages, social
get together; birthday calibration etc. People of all ages and groups are especially attracted by the
mere mention of the word carbonated beverages.
With the growing popularity of carbonated beverages, the technology of its production,
preservation, transportation and or marketing in the recent years has witnessed phenomenal
changes.
The so-called competition for this product in the market is from different other brands. Mass
media, particularly the emergence of television, has contribute to a large extent of the ever
growing demand for carbonated beverages the attractive jingles and sport make the large
audience remember this product at all times.
It is expected that with the sort of mass advertising, reaching almost the entire country and
offering various varieties annual demand for the product is expected to rise sharply in the times
to come.
In any marketing situation, the behavioral / environmental variables relating to consumers,
competition and environment are constantly influx. The competitors in a given industry may be
making many tactical maneuvers in market all the time. They may introduce or initiate an
aggressive promotion campaign or announce a price reduction. The marketing man of the firm
has to meet all these maneuver and care of competitive position of his firm and his brand in the
market. The only route open to him for achieving this is the manipulation of his marketing
tactics.
In today’s highly competitive market place, three players have dominated the industry; The New
York based Pepsi Company Inc. The Atlanta based coca- cola and U.K. based Cadbury
Schweppes.
Through the globe, these major players have been battling it out for a bigger chunk of the ever –
growing carbonated beverages market. Now this battle has been evolved up to India too with the
arrival of these three giants.
Carbonated beverages industry is on amazing growth; ultimately these are only one person who
will determine their fortunes. The Indian consumer the real
War to quench his thirst has just begun.
THE RIVARLY BEGINS:
Coke Comes to India
Coca-Cola comes to India with fanfare in the fifties. For a number of days, The Hindustan Times
and other newspapers of New Banaras carried full page advertisement showing a big boy in
uniform with a carbonated beverages crown as the cap. There was no indication of the product.
After a few days, Coke was introduced. It was an entirely new drink which fascinated people. It
soon became the national drink. For the first time, a carbonated beverages was available from
one corner of the country to another. The person who brought Coca-Cola to India was the father
of late Sardar Charanjit Singh, Sardar Mohan Singh. A practical man Mohan Singh realized that
to popularize Coca-Cola, and make it a best seller it was necessary to “catch them young.” So he
focused on youngsters in the society.
The company realized that to become a mass consumption product, one has to go to the village.
They gave much importance to the distributive network. The company trucks supplied coke to
even the remotest village.
Few products appears to be more similar than carbonated beverages, yet the Cola wars that mark
the competition between Coke and Pepsi show how even organizations with highly similar
product can be differentiated by their business strategies. Then comes battles over the issue of
bottle size standardization. Coke the arch rival tried to offering more Cola at a lower price. Pepsi
which had some of its early investment tied up in 250ml bottles, went the fountain way.
The General bottle size freed has settled at 300 ml. 100 ml more than the pre MNC standard.
Fountain mix dispensers, carry home bottles, even 1.50 plastic bottle with caps good enough to
keep them lying down and still preserve the fizz.
It poured in vast sums to whip up its visibility at the retail level, so that consumers were greeted
virtually at every street corner by Pepsi’s blue, red and white colors, because they have
perception “the thing on display sells more.” Coca-Cola is, finally, redoing the real thing to the
replicate the success that it’s arch-rival, PepsiCo. Has achieved with its fast and furious
marketing. But to win them, Coke is copying Pepsi.
OBJECTIVE OF THE STUDY
The basic objective of the study is to know about the consumers’ preferences for COCA
COLA and PEPSI.
To know the percentage of males and females those are aware about the brands.
To know which brand’s advertisement mostly people have seen.
To know the reason to buy carbonated beverages.
To know whether the advertisement being noticed by the consumer or not.
To create a top of mind awareness about COCA COLA and PEPSI in NORTH-WEST
DELHI REGION, by providing the information to consumers.
LITERATURE REVIEW
The coke and Pepsi settle trademarks lawsuit : The Coca-Cola Company and PepsiCo have
settled a trademark lawsuit over PepsiCo’s Trop50 juice packaging design, which Coca-Cola had
claimed was too similar to that of its Simply juice range. Terms of the settlement were not
disclosed, but US District Judge Sim Lake signed an order to dismiss the suit late last week.
Coca-Cola had alleged that PepsiCo was trying to piggyback on the success of its billion-dollar
Simply brand by confusing consumers with similar packaging, while diluting the quality of the
Coke juice brand. Coca-Cola introduced its Simply juice line in 2001 with Simply Orange, and
Simply Grapefruit and Simply Apple juices followed. The design is a carafe-style bottle with an
oversized green cap. (Beverage daily in regulation-safety on 10-May-2011)
Reformaulation of carbonated drinks could slash more than 6000 calories per year:Using stevia
to reformulate just 20% of carbonated soft drinks could slash more than 6,000 calories peryear
from the diet of consumers, says Diana Cowland of Euromonitor International. If manufacturers
were to reformulate around one fifth of carbonated drinks to containless sugar using stevia, it can
be estimated that consumers could achieve an annualreduction of between 6,000 and 10,000 kcal
per person. Euromonitor International has estimated that if full-sugar carbonates were
reformulatedto contain stevia and hence saw a 30% calorie reduction, a 330ml can of
colacarbonates, which contains 139kcal, could be reduced down to 97kcal. If 20% of all regular
carbonates were reformulated, a person who consumed two cansper day – an amount not wholly
inconceivable – would see a reduction of 6,132 kcalannually. If the proportion of sugar removed
increased to 50%, which is now a clear opportunitydue to recent innovations such as the steviol
glycoside blend Reb X – developedthrough a partnership between PureCircle and The Coca-Cola
Co (TCCC) – it wouldresult in a calorie reduction of 10,147 kcal annually - based on the same
one personconsuming two cans per day. Additionally, if 20% of conventional carbonates were
repositioned as reduced-sugar carbonates, the latter couldsee consumption of almost 60 billion
litres by 2017, representing equivalent to 34% of all carbonates in volumeterms.
Why soft drinks? Soft drinks are the most widely used vehicle for stevia, and the category offers
the best opportunity formanufacturers to have an impact on an individual’s sugar intake and
hence calorie intake; which is an area of highinterest to consumers and manufacturers alike.As
reduced-sugar carbonates are the largest contributor to reduced-sugar soft drinks consumption,
substitutingstandard carbonates for reduced-sugar versions is one of the most obvious ways for
consumers to reduce theirsugar intake.
Weight loss without changing dietary habits Whilst this reduction alone might appear small and,
singlehandedly, would not curb the growth in the overweightand obese population, it could still
have an impact. If, for example, the loose and highly debated formula of a calorie deficit of
3,500kcal is equivalent to a loss of 1lb inbody weight per year, and 20% of full-sugar carbonates
are reformulated, it could lead to a per capita weight loss of1.7lb annually without any change in
dietary habits. When it comes to weight management, this is a proposition many consumers
would be pleased to accept.
Focus on countries with high reduced-sugar soft drinks consumption However, demand for
reduced-sugar soft drinks is not universal. Therefore, formanufacturers looking for potential
opportunities to reformulate with stevia, thefocus should be on markets with high consumption
of reduced-sugar soft drinkvariants. It is evident that, to some extent, this strategy has already
been adopted bymanufacturers, as TCCC has piloted its first stevia-sweetened Coca-Cola,Coca-
Cola Life, in Argentina, the top market for reduced-sugar soft drinks, interms of per capita
consumption. There have also been recent developments in the US. In February 2014, DrPepper
Snapple announced that it is going to launch stevia-sweetenedvariants of its 7-Up, Dr Pepper and
Canada Dry brands in the US later in the year.
Reducing sugar intake can target the mass market :However, the recent concern from scientists
and consumers over sugar demonstrates how a low-sugar diet is nolonger limited to more health-
conscious consumers, and hence stevia-sweetened beverages have the potential totarget the mass
market.Indeed, a growing number of reports, both in the scientific press as well as the media, are
now linking a high sugardiet not just to weight gain but also to the rapid growth of diet-related
chronic diseases such as type 2 diabetes. In early 2014, some protagonists went as far as to say
that sugar can have the same dangers as tobacco.Stevia is, therefore, set to gain further traction
from the demise of sugar, and is almost becoming mainstream asmanufacturers see the benefits
in lowering the calorie content of a product whilst still retaining a 'natural' image
(Beverage daily, sector- soft drinks and water ,By Diana Cowland, 21-march-2014 page 10)
A study of factor responsible for brand preference in fmcg sectors: The purpose of this paper is
the study of factors responsible for brand preference in fmcg products, increasing competition,
more due to globalization, is motivating many companies to base their strategies almost entirely
on building brands. Brand preference means to compare the different brands and opt for the most
preferred brand. This brand preference is influenced by various factors. According to this study
many factors were find out for preferring a brand like Brand persona, Brand constancy, Brand
loftiness, Brand value. In the identification of factors affecting the brand preference, it was
concluded that brand persona is the most effective factor that affects the brand preference. This
brand persona deals with the personality aspects or the external attributes of brand, thus it can be
said that consumer prefer any brand by looking at the external attributes of a brand.
(ims, noida journal vol 5 no.1, june 2008 by Dr. Jayant Sonwalkar, page-5)
Colour and flavour rule of consumer preference study: The intensity of colour and the flavour
are the key drivers behind consumer acceptance of beverages, says a new study involving
DANONE. But packaging and labelling are not as important for winning over consumers,
according to findings published in the journal Food Quality and Preference, The study involved
consumers at different stages of development and highlights the importance of adopting a
“sensory marketing approach,” said the researchers from French research organisation Adriant,
the University of Rennes 1, DANONE R&D, and Institute Paul Bocuse. “Companies need to
continuously innovate to maintain market leadership,” wrote the researchers. “When the market
is overloaded the challenge consists in creating innovative products able to attract and satisfy
consumers.”“This experiment showed the feasibility of the proposed multi-sensory design
method based on mixed qualitative and quantitative approaches.” The study also demonstrates
the importance of flavour and colour selection for new products. The global flavours market was
been valued at some US$18bn in 2006 (Business Insights). Meanwhile, the value of the
international colourings market was estimated at around $1.15bn in 2007 (€731m), up 2.5 per
cent from $1.07bn (680m) in 2004, according to Leatherhead Food International (LFI). Natural
colours now make up 31 per cent of the colourings market, compared with 40 per cent for
synthetics, according to LFI. Bombarding the senses : By choosing to formulate a new beverage,
the researchers noted that the new product would need to be differentiated by improving the
sensory characteristics.
Four factors were identified for the formulation: four colour intensities), three flavourings, two
label types (soft versus hard), and two pack sizes (standard versus oversize). By using both
quantitative (hedonic testing) and qualitative (focus groups) approaches, the researchers found
that “the main factors which drive consumer preference for this concept are colour intensity and
flavouring”. Indeed, colour intensity accounted for 43 per cent and flavour 32 per cent of the
consumers’ overall liking. “Pack size and label type are taken into account by the consumer to a
lesser extend,” they added. “This methodology of a qualitative screening associated to a conjoint
analysis on relevant sensory attributes has shown good performances to fit consumers’
expectation: it has now to be reproduced, as every brand, concept and product is a unique
combination designed for a specific consumer group,” concluded the researchers
(Food quality and preference vol 19, issue 8, pages 719-726 by Stephen Daniells 07-Oct-2008)
Taste or health a study on consumer acceptance of carbonated beverages: This study examined
the relative contributions of taste and health considerations on consumer liking and purchase
intent of carbonated beverages. Eight types of commercial carbonated beverages 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 carbonated beverages was
strongly related to degree of liking and to several key sensory attributes including saltiness,
drinks flavor and greasiness. These variables emerged as the first factor in the analysis,
suggesting that consumers perceive these characteristics as being most important in their choice
of carbonated beverages. Factor 2 described a health dimension and was related to respondents'
attitudes toward fat in the diet. Factor 3 comprised two remaining sensory attributes (color and
crunchiness), which apparently were of minor importance to the respondents. These data suggest
that in spite of current concern about reducing dietary fat, health remains secondary to taste in
the selection of carbonated beverages for consumers in this population. (Beverly J. Tepper and
Amy C. Trail Journal of Food Science and Technology, 15 September 1998
Consumer awareness and Consumption pattern of food products: This paper aims to investigate
the degree of brand awareness of various food products in relation to background and education
of the household, the consumption pattern of various food products consumed by respondents in
the light of their areas, income levels and education. a sample of200 respondents comprising 100
form rural area and 100 from urban area were taken. Data are analyzed with the help of
mean.SD, co –efficient of variance-test and f-test. The finding of this study reveals that there is
low degree of brand awareness in rural areas, whereas there is a moderate degree of brand
awareness in urban India. The highly educated rural and urban respondents have high degree of
brand awareness for many food products, and the less educated rural and urban respondents have
low degree of brand awareness for many food products. (Journal of ims vol 3 no.1,june 2007 by
Singh h ,page-24-33)
COMPANY’S
PROFILE
COCA –COLA COMPANY PROFILE
Keeping in view of tapping the Indian carbonated beverages market and also developing
carbonated beverages as a drinking product among Indians. The Coca-Cola in India has setup an
independent organizations which is H.C.C & B.C.C with a capital of 350 U.S.$ each by virtue of
sellout decision of the passed managing director Sh. S. C. Aggarwal.
Hindustan Coca-Cola bottling (N-W) Pvt. Ltd. Najibabad took the complete possession of this
plant, land, machinery, & intellectuals on February 14’ 1998 and since then H.C.C, looking after
all its affairs under company owned bottling plant to establish integrated marketing system in the
area.
The world is changing all around us. To continue to thrive as a business over the next ten years
and beyond, we must look ahead, understand the trends and forces that will shape our business in
the future and move swiftly to prepare for what's to come. We must get ready for tomorrow
today. That's what our 2020 Vision is all about. It creates a long-term destination for our
business and provides us with a "Roadmap" for winning together with our bottling partners.
CORE BRANDS:
Coca-Cola: Developed in a brass pot in 1886, coca-cola is the most recognized and admired
trademark around the globe. Not to mention the best selling carbonated beverages in the world.
Sprite: In 1961, a citrus-flavored drink made its U.S debut, using“Sprite Boy “as inspiration for
its name. This elf with silver hair and a big smile was used in 1940s advertising for Coca-Cola.
Sprite is now the fastest growing major carbonated beverages in U.S and the world’s most
popular lemon-lime carbonated beverages.
Fanta : The name “fanta “ was first registered as a trademark in Germany in 1941 ,when it was
used for a few year for a carbonated beverages created from available materials and flavors .
The name was then revived in 1955 in Naples, Italy, when it was used for the:” fanta “orange
drink we know today. It is now the trademark name for a line of flavored drinks around the
world.
Diet coke: The extension of the coca-cola name began in 1982 with the introduction of diet
coke (also called coca-cola light in some countries). Diet coke quickly becomes the number –
one selling low –calorie carbonated beverages in the world.