PROJECT REPORT ON A STUDY OF “FACTOR INFLUENCING CHOICE OF SOFT DRINKS” IN UDAIPUR CITY SUMITTED IN PARTIAL FULFILLMENT FOR DEGREE OF MASTER OF BUSINESS ADMINISTRATION YEAR: 2008 PACIFIC INSTITUTE OF MANAGEMENT AFFILIATED TO RAJASTHAN TECHNICAL UNIVERSITY KOTA (RAJ.) 0
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PROJECT REPORTON
A STUDY OF“FACTOR INFLUENCING CHOICE OF SOFT DRINKS”
IN UDAIPUR CITY
SUMITTED IN PARTIAL FULFILLMENT FOR DEGREE OF MASTER OF BUSINESS ADMINISTRATION
YEAR: 2008
PACIFIC INSTITUTE OF MANAGEMENTAFFILIATED TO
RAJASTHAN TECHNICAL UNIVERSITYKOTA (RAJ.)
SUBMITTED BY GUIDED BY DEEPAK KUMAR CHECHANI MISS. AMITA SINGVIM.B.A SEM. IV
0
Preface
The beverages sector in India is one of the largest in terms of production,
consumption, export & growth prospects. These are two major sectors in the
beverages industry, i.e. Alcoholic Sector & Non Alcoholic Sector.
The purpose of this project is to find out the factors that affect the choice of
consumers when they purchase soft drinks (Non Alcoholic Beverages), the
brands preferred by the consumers for different flavors & about the
consumption pattern for different soft drinks.
Chapter one includes the introduction of the beverage industry framework of
India beverage industry & explains in detail about the non alcoholic
beverage sector.
Chapter two contains objectives of the research study & the research
methodology used for the project.
Chapter three also includes the analysis & interpretation of the research
study.
Chapter four has various finding, conclusion & suggestions.
1
Acknowledgement
Firstly, I thanks the all mighty by the grace of whom. This report was
undertaken and duly completed in time.
I take the opportunity to express my profound sense of gratitude and sincere
indebt ness to Miss. Amita Singvi, under sympathetic, pains taking, and kind
guidance of whom, I was able to complete this repot.
I am grateful to Director of our institute Dr. B.P.sharma who enabled me to
complete this report through their king guidance all the time.
I am very thank full to all the faculty member of the institute who helped me
a lot in it interpretation of date regarding my report without which this work
would never be completed.
I am also thankful to my parents who helped me morally and financially in
completion of this report.
2
Executive summary
Soft Drinks Bounces Back
After a somewhat subdued performance in 2006 due to a recurrence
of the pesticides controversy, soft drinks sales bounced back strongly to
record double-digit volume growth in 2007. With carbonates growth back on
a positive upward curve alongside burgeoning sales of fruit/vegetable juice
and bottles water, soft drinks showed impressive growth in 2007. Off-trade
volumes grew slightly faster than on-trade volumes, driven by higher
consumption of packaged and branded soft drinks at home and on the go.
The emergence of supermarkets/hypermarkets, heavy consumer
promotions and various new product launches played a key role in driving
off-trade volume growth.
Bottled Water and Fruit/vegetable Juice Continue to be Star
Performers
Soft drinks sales in 2007 were propelled by bottled water and
fruit/vegetable juice with their healthier positioning helping to drive sales of
soft drinks. While carbonates posted single-digit growth in 2007, rebounding
from the pesticides controversy of 2006, it was bottled water and
fruit/vegetable juice that stormed ahead with high double-digit growth rates.
Poor municipal infrastructure for tap water has pushed sales of bulk
packaged water to households. Fruit/vegetable juice is growing as a result
of increased consumer expenditure on naturally healthy (NH) beverages.
While functional drinks and RTD tea also posted impressive growth in 2007,
they were growing from a very small base and are yet to achieve a critical
mass in terms of establishing a loyal consumer base.
3
Coca-Cola India and PepsiCo India slip in shares
With consumers showing a growing preference for healthier soft
drinks such as bottled water and fruit/vegetable juice rather than carbonates
in 2007, the two carbonates giants suffered a marginal decline in share.
Although both players embarked on a change in strategy to focus more on
non-carbonated soft drinks in their portfolios, they were unable to maintain
share and lost out slightly too home-grown players Parle Bisleri and Dabur
India. Coca-Cola India launched Minute Maid and pushed the sales of its
juices while PepsiCo India heavily promoted Tropicana, Aquafina and
Gatorade during 2007. In addition, Coca-Cola India and PepsiCo India
embarked on re-branding themselves as total beverage players and not just
carbonates players.
Booming Modern Retail Brings Many Opportunities for Soft Drinks
Players
With the retail scene in India undergoing a rapid metamorphosis with
the establishment of supermarkets/ hypermarkets and convenience stores,
soft drinks sales have benefited positively. People in urban areas are
increasingly flocking to supermarkets to pick up specialty items that are not
available in the kirana stores that are found all over India. Modern retail
outlets have provided soft drinks players with many opportunities to push
their brands. Consumer promotions for fruit/vegetable juice and emerging
sectors such as RTD tea and functional drinks are driving product sampling.
Attractive point-of-sale (PoS) displays and gift packs of concentrates are
also drawing consumer attention in supermarkets/hypermarkets.
4
Healthy Drinks to Drive Forecast Growth
Soft drinks is expected to post a strong performance on the back of
increasing affluence amongst consumers and evolving lifestyles which lead
to consumers devoting less time to preparing fresh food and drink at home.
Competition from the unorganized sector will diminish gradually as
consumers show greater aversion to buying unpackaged and unbranded
soft drinks from street vendors due to health and hygiene concerns. Rising
health consciousness is also expected to drive sales of naturally healthy
(NH) soft drinks such as 100% juice and mineral water. In addition, soft
drinks such as sports drinks and juice-based carbonates are also expected
to fare well over the forecast period as consumers perceive them to be
healthy.
Beverage Industry
EMERGING BEVERAGE TRENDS
The beverage industry is a shifting landscape as volume leading
categories such as soft drinks and beer continue to experience share
erosion while functional and health & wellness oriented categories enjoy
double-digit volume growth:
Soft Drinks -3.9%
Domestic Beer -1.2%
Energy Drinks +53%
Bottled Water +25%
RTD Tea +23%
Sports Drinks +19%
5
Industry giants Coca Cola (http://www.coke.com/) and Pepsi
(http://www.pepsico.com/) continue to diversify their portfolios, as evidenced
with Coke’s recent acquisitions involving Glaceau’s vitaminwater
(http://www.glaceau.com/) and Fuze (http://www.drinkfuze.com/), as well as
Pepsi’s purchase of Izze Natural Soda (http://www.izze.com/).
Functional beverages continue to be the hottest segment in beverage,
driven by energy drinks (+53% growth in 2006). Red Bull
(http://www.redbull.com/) continues to lead the category, but challengers
Monster (http://www.monsterenergy.com/) and Rockstar
(http://www.rockstar69.com/) are realizing share leadership in select
markets.
Bottled water is experiencing resurgence, +25% versus year ago, and is
second only to energy drinks in volume growth. Segment growth is driven
largely by the introduction of enhanced/fortified/flavored waters, led by
Glaceau’s vitaminwater but featuring a slew of new entrants including:
Metromint (http://www.metromint.com/), Hint (http://www.drinkhint.com/),
Propel Fitness Water (http://www.propelwater.com/), SoBe Lifewater
Dow Jones CompositeDow IndustrialsS&P 100S&P 500S&P 1500 Super Comp
Sector: Consumer Goods
Industry: Beverages - Soft Drinks
Employees (last reported count): 92,400
OFFICERSPay Exercised
Mr. Muhtar Kent ,
58 Chief Exec. Officer, Pres, Director and Member of Exec. Committee
$ 5.60M$ 0
Mr. Gary P. Fayard ,
56 Chief Financial Officers and Exec. VP$ 1.83M $ 0
Mr. Alexander B. Cummings Jr.,
52 Chief Admin. Officer, Exec. VP, Pres of Africa Group and Chief Operating Officer of Africa Group
$ 1.59M $ 0
Mr. José Octavio Reyes ,
56 Pres of Latin America and Chief Operating Officer of Latin America
$ 1.86M $ 0
Mr. Irial Finan ,
51 Exec. VP and Pres of Bottling Investments & Supply Chain
$ 2.13M $ 0
Dollar amounts are as of 31-Dec-08 and compensation values are for the last fiscal year ending on that date. "Pay" is salary, bonuses, etc. "Exercised" is the value of options exercised during the fiscal year.
The Coca-Cola Company manufactures, distributes, and markets
nonalcoholic beverage concentrates and syrups worldwide. It principally offers
sparkling and still beverages. The company’s sparkling beverages include
nonalcoholic ready-to-drink beverages with carbonation, such as energy drinks,
and carbonated waters and flavored waters. Its still beverages consist of
nonalcoholic beverages without carbonation, including non-carbonated waters,
flavored waters and enhanced waters, juices and juice drinks, teas, coffees,
and sports drinks. The Coca-Cola Company also offers fountain syrups, syrups,
and concentrates, such as flavoring ingredients and sweeteners. The company
markets its nonalcoholic beverages under the Coca-Cola, Diet Coke, Fanta,
and Sprite brand names. The Coca-Cola Company also owns mineral water
brands Kildevaeld and Kurvand in Denmark and soft drink brand Hyvaa Paivaa
in Finland. It sells its finished beverage products primarily to distributors, and
beverage concentrates and syrups to bottling and canning operators,
distributors, fountain wholesalers, and fountain retailers. The company was
founded in 1886 and is headquartered in Atlanta, Georgia.
54
COKE IN INDIA
Coca-Cola was the leading soft drink brand in India until 1977 when it
left rather than reveals its formula to the government and reduces its equity
stake as required under the Foreign Exchange Regulation Act (FERA) which
governed the operations of foreign companies in India. After a 16-year
absence, Coca-Cola returned to India in 1993, cementing its presence with a
deal that gave Coca-Cola ownership of the nation's top soft-drink brands and
bottling network. Coke’s acquisition of local popular Indian brands including
Thums Up (the most trusted brand in India2 1), Limca, Maaza, Citra and Gold
Spot provided not only physical manufacturing, bottling, and distribution assets
but also strong consumer preference. This combination of local and global
brands enabled Coca-Cola to exploit the benefits of global branding and global
trends in tastes while also tapping into traditional domestic markets. Leading
Indian brands joined the Company's international family of brands, including
Coca-Cola, diet Coke, Sprite and Fanta, plus the Schweppes product range. In
2000, the company launched the Kinley water brand and in 2001, Shock
energy drink and the powdered concentrate Sunfill hit the market.
From 1993 to 2003, Coca-Cola invested more than US$1 billion in India,
making it one of the country’s top international investors.22 by 2003, Coca-
Cola India had won the prestigious Woodruf Cup from among 22 divisions of
the Company based on three broad parameters of volume, profitability, and
quality. Coca-Cola India achieved 39% volume growth in 2002 while the
industry grew 23% nationally and the Company reached break-even
profitability in the region for the first time.2 3 Encouraged by its 2002
performance, Coca-Cola India announced plans to double its capacity at an
investment of $125 million (Rs. 750 crore) between September 2002 and
March 2003.
55
Coca-Cola India produced its beverages with 7,000 local employees at
its twenty-seven wholly-owned bottling operations supplemented by seventeen
franchisee-owned bottling operations and a network of twenty-nine contract-
packers to manufacture a range of products for the company. The complete
manufacturing process had a documented quality control and assurance
program including over 400 tests performed throughout the process.
The complexity of the consumer soft drink market demanded a
distribution process to support 700,000 retail outlets serviced by a fleet that
includes 10-ton trucks, open-bay three wheelers, and trademarked tricycles
and pushcarts that were used to navigate the narrow alleyways of the cities.25
In addition to its own employees, Coke indirectly created employment for
another 125,000 Indians through its procurement, supply, and distribution
networks.
Sanjiv Gupta, President and CEO of Coca-Cola India, joined Coke in
1997 as Vice President, Marketing and was instrumental to the company’s
success in developing a brand relevant to the Indian consumer and in tapping
India’s vast rural market potential. Following his marketing responsibilities,
Gupta served as Head of Operations for Company-owned bottling operations
and then as Deputy President. Seen as the driving force behind recent
successful forays into packaged drinking water, powdered drinks, and ready-
to-serve tea and coffee, Gupta and his marketing prowess were critical to the
continued growth of the Company.
56
HISTORY OF COKE
The Early Days
Coca-Cola was created in 1886 by John Pemberton, a pharmacist in
Atlanta, Georgia, who sold the syrup mixed with fountain water as a potion for
mental and physical disorders. The formula changed hands three more times
before Asa D. Candler added carbonation and by 2003, Coca-Cola was the
world’s largest manufacturer, marketer, and distributor of nonalcoholic
beverage concentrates and syrups, with more than 400 widely recognized
beverage brands in its portfolio. With the bubbles making the difference, Coca-
Cola was registered as a trademark in 1887 and by 1895, was being sold in
every state and territory in the United States. In 1899, it franchised its bottling
operations in the U.S., growing quickly to reach 370 franchisees by 1910.10
Headquartered in Atlanta with divisions and local operations in over 200
countries worldwide, Coca-Cola generated more than 70% of its income
outside the United States by
2003.
International expansion
Coke’s first international bottling plants opened in 1906 in Canada,
Cuba, and Panama.11 By the end of the 1920’s Coca-Cola was bottled in
twenty-seven countries throughout the world and available in fifty-one more.
In spite of this reach, volume was low, quality inconsistent, and effective
advertising a challenge with language, culture, and government regulation all
serving as barriers. Former CEO Robert Woodruff’s insistence that Coca-Cola
wouldn’t buffer the stigma of being an intrusive American product,57 and
instead would use local bottles, caps, machinery, trucks, and personnel
contributed to Coke’s challenges as well with a lack of standard processes
and training degrading quality.
57
Coca-Cola continued working for over 80 years on Woodruff’s goal: to
make Coke available wherever and whenever consumers wanted it, an arm’s
reach of desire. The Second World War proved to be the stimulus Coca-Cola
needed to build effective capabilities around the world and achieve dominant
global market share. Woodruff’s patriotic commitment that every man in
uniform gets a bottle of Coca-Cola for five cents, wherever he is and at
whatever cost to our company was more than just great public relations. As a
result of Coke’s status as a military supplier, Coca-Cola was exempt from
sugar rationing and also received government subsidies to build bottling
plants around the world to serve.
Turn of the Century Growth Imperative
The 1990’s brought a slowdown in sales growth for the Carbonated Soft
Drink (CSD) industry in the United States, achieving only 0.2% growth by 2000
(just under 10 billion cases) in contrast to the 5-7% annual growth experienced
during the 1980’s. While per capita consumption throughout the world was a
fraction of the United States’, major beverage companies clearly had to look
elsewhere for the growth their shareholders demanded. The looming
opportunity for twenty-first century was in the world’s developing markets with
their rapidly growing middle class populations.
The World’s Most Powerful Brand
Inter brand’s Global Brand Scorecard for 2003 ranked Coca-Cola the
#1 Brand in the World and estimated its brand value at $70.45 billion. The
ranking’s methodology determined a brand’s valuation on the basis of how
58
much it was likely to earn in the future, distilling the percentage of revenues
that could be credited to the brand, and assessing the brand’s strength to
determine the risk of future earnings forecasts. Considerations included
market leadership, stability, and global reach, incorporating its ability to cross
both geographical and cultural borders.
From the beginning, Coke understood the importance of branding and
the creation of a distinct personality.1 8 Its catchy, well-liked slogans1 9 (it’s
the real thing59 (1942, 1969), things go better with Coke59 (1963), coke is its
(1982), can’t beat the Feeling (1987), and a 1992 return to can’t beat the real
thing59) 20 linked that personality to the core values of each generation and
established Coke as the authentic, relevant, and trusted refreshment of choice
across the decades and around the globe.
59
Marketing Cola in India
The post-liberalization period in India saw the comeback of cola but
Pepsi had already beaten Coca-Cola to the punch, creatively entering the
market in the 1980’s in advance of liberalization by way of a joint venture. As
early as 1985, Pepsi tried to gain entry into India and finally succeeded with
the Pepsi Foods Limited Project in 1988, as a JV of PepsiCo, Punjab
government-owned Punjab Agro Industrial Corporation (PAIC), and Voltas
India Limited. Pepsi was marketed and sold as Lehar Pepsi until 1991 when
the use of foreign brands was allowed under the new economic policy and
Pepsi ultimately bought out its partners, becoming a fully-owned subsidiary
and ending the JV relationship in 1994.
While the joint venture was only marginally successful in its own right, it
allowed Pepsi to gain precious early experience with the Indian market and
also served as an introduction of the Pepsi brand to the Indian consumer such
that it was well-poised to reap the benefits when liberalization came. Though
Coke benefited from Pepsi creating demand and developing the market,
Pepsi’s head-start gave Coke a disadvantage in the mind of the consumer.
Pepsi’s appeal focused on youth and when Coke entered India in 1993 and
approached the market selling an American way of life, it failed to resonate as
expected.
60
2001 Marketing Strategy
Coca-Cola CEO Douglas Daft set the direction for the next generation
of success for his global brand with a “Think local, act local” mantra.
Recognizing that a single global strategy or single global campaign wouldn’t
work, locally relevant executions became an increasingly important element of
supporting Coke’s global brand strategy.
In 2001, after almost a decade of lagging rival Pepsi in the region, Coke
India re-examined its approach in an attempt to gain leadership in the Indian
market and capitalize on significant growth potential, particularly in rural
markets. The foundation of the new strategy grounded brand positioning and
marketing communications in consumer insights, acknowledging that urban
versus rural India were two distinct markets on a variety of important
dimensions. The soft drink category’s role in people’s lives, the degree of
differentiation between consumer segments and their reasons for entering the
category, and the degree to which brands in the category projected different
perceptions to consumers were among the many important differences
between how urban and rural consumers approached the market for
refreshment.
In rural markets, where both the soft drink category and individual
brands were undeveloped, the task was to broaden the brand positioning while
in urban markets, with higher category and brand development, the task was
to narrow the brand positioning, focusing on differentiation through offering
unique and compelling value. This lens, informed by consumer insights, gave
Coke direction on the tradeoff between focus and breadth a brand needed in a
given market and made clear that to succeed in either segment, unique
marketing strategies were required in urban versus rural India.
61
Rural Success
Comprising 74% of the country's population, 41% of its middle class,
and 58% of its disposable income, the rural market was an attractive target
and it delivered results. Coke experienced 37% growth in 2003 in this
segment versus the 24% growth seen in urban are as.
Driven by the launch of the new Rs. 5 product, per capita consumption
doubled between 2001-2003. This market accounted for 80% of India’s new
Coke drinkers, 30% of 2002 volume, and was expected to account for 50% of
the company’s sales in 2003.
Brand Localization Strategy: The Two Indies
India A: “Life ho to aisi”
“India A,” the designation Coca-Cola gave to the market segment
including metropolitan areas and large towns, represented 4% of the country’s
population.3 3 This segment sought social bonding as a need and responded
to inspirational messages, celebrating the benefits of their increasing social
and economic freedoms. “Life ho to aisi,” (life as it should be) was the
successful and relevant tagline found in Coca-Cola’s advertising to this
audience.
India B: “Thanda Matlab Coca-Cola”
Coca-Cola India believed that the first brand to offer communication
targeted to the smaller towns would own the rural market and went after that
objective with a comprehensive strategy. “India B” included small towns and
rural areas, comprising the other 96% of the nation’s population. This
segment’s primary need was out-of-home thirst-quenching and the soft drink
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category was undifferentiated in the minds of rural consumers. Additionally,
with an average Coke costing Rs. 10 and an average day’s wages around Rs.
100, Coke was perceived as a luxury that few could afford.
In an effort to make the price point of Coke within reach of this high-
potential market, Coca-Cola launched the Accessibility Campaign, introducing
a new 200ml bottle, smaller than the traditional 300ml bottle found in urban
markets, and concurrently cutting the price in half, to Rs. 5. This pricing
strategy closed the gap between Coke and basic refreshments like lemonade
and tea, making soft drinks truly accessible for the first time. At the same time,
Coke invested in distribution infrastructure to effectively serve a disbursed
population and doubled the number of retail outlets in rural areas from 80,000
in 2001 to 160,000 in 2003, increasing market penetration from 13 to 25%.
Coke’s advertising and promotion strategy pulled the marketing plan
together using local language and idiomatic expressions. “Thanda,” meaning
cool/cold is also generic for cold beverages and gave “Thanda Matlab Coca-
Cola” delicious multiple meanings. Literally translated to “Coke means
refreshment,” the phrase directly addressed both the primary need of this
segment for cold refreshment while at the same time positioning Coke as a
“Thanda” or generic cold beverage just like tea, lassi, or lemonade. As a result
of the Thanda campaign, Coca-Cola won Advertiser of the Year and Campaign
of the Year in 2003.
63
CORPORATE SOCIAL RESPONSIBILITY
As one of the largest and most global companies in the world, Coca-
Cola took seriously its ability and responsibility to positively affect the
communities in which it operated. The company’s mission statement, called
the Coca-Cola Promise, stated: “The Coca-Cola Company exists to benefit
and refresh everyone who is touched by our business.” The Company has
made efforts towards good citizenship in the areas of community, by
improving the quality of life in the communities in which they operate, and the
environment, by addressing water, climate change and waste management
initiatives. Their activities also included The Coca-Cola Africa Foundation
created to combat the spread of HIV/AIDS through partnership with
governments, UNAIDS, and other NGOs, and The Coca-Cola Foundation,
focused on higher education as a vehicle to build strong communities and
enhance individual opportunity.
Coca-Cola’s footprint in India was significant as well. The Company employed
7000 citizens and believed that for every direct job, 30-40 more we re created
in the supply chain.
Like its parent, Coke India’s Corporate Social Responsibility (CSR)
initiatives were both community and environment-focused. Priorities included
education, where primary education projects had been set up to benefit
children in slums and villages, water conservation, where the Company
supported community-based rainwater harvesting projects to restore water
levels and promote conservation education, and health, where Coke India
partnered with NGOs and governments to provide medical access to poor
people through regular health camps. In addition to outreach efforts, the
company committed itself to environmental responsibility through its own
business operations in India including.
64
Environmental due diligence before acquiring land or starting projects.
Environmental impact assessment before commencing operations.
Ground water and environmental surveys before selecting sites.
Compliance with all regulatory environmental requirements.
Ban on purchasing CFC-containing refrigeration equipment.
Waste water treatment facilities with trained personnel at all company-
owned bottling operations.
Energy conservation programs.
50% water savings in last seven years of operations
65
RESEARCH METHODOLOGY
66
RESEARCH METHODOLOGY
Scope of the study:
The research pertains to the study of consumer choice for soft drinks at
Udaipur market. This study is attempt to analyze the present top brands
preferred by customer for soft drink in udaipur market, examine the product
factors that influence the purchasing decisions of buyers and to know the
relation between gender & preference for soft drinks & flavors.
Objectives of the study
As every research has some objective/s to achieve or problem/s to solve.
Because every research is conducted in order to achieve some objectives.
Objectives of this research stud y are-
1. To study the brand preference for different kind of soft drinks.
2. To determine the factors that influences the consumer choice of a
particular soft drink.
3. To study the consumption pattern & behavioral aspects of consumes
such as frequency of consumption, quantity of consumption, place of
consumption etc.
4. To study the sales promotion tool/techniques sources of media that
attracts consumers most.
67
METHODOLOGY
Data collection
The type of data collected for the research was primary as well as secondary.
Primary data was collected through:
Direct contact with the customers.
Questionnaires filled by the customers.
Secondary data was collected through:
Various journals
Internet survey reports
68
Field work and Sample
While developing and utilizing a sample for the research purpose, the following
steps were used:
Defining the universe
Developing the sample frame
Selecting a sampling frame
Determining the sample size
Selecting the research instrument
Universe
The universe or population is the specific group of people is the specific group
of people from conditions, activities, etc. which form the pivotal point of the
project.
For developing and using sample, it becomes the primary duty of researcher to
define the population from which she\he intends to draw the sample.
The universe of my project is about 130 consumers of Udaipur city, which
formed the pivotal point of my project.
Sampling frame
A sampling frame may be defined as the listing of the general components of
the individual unit that comprise the defined population.
In case of my project, sampling frame is various consumers frame is various
consumers including lower middle class, middle class and rich class.
69
Sampling procedure
After defining the sampling frame, other important point to be discussed is
which sampling procedure to be adopted.
A simple random sampling technique will be used to understand customer’s
outlook towards the soft drinks.
Sample size
130 consumers of Udaipur city an attempt will be made to make the sample
representative of the whole population under study.
Research instrument:
Questionnaires were used to find out “Factors influencing consumer choice of
soft drinks” in Udaipur city with the help of the questionnaire, filled by 130
consumers, the result was analyzed.
The process was followed to prepare a questionnaire:
1. Specify the information needed.
2. Determined the types of questions to be asked.
3. Deciding the number and sequence of questionnaire.
4. Preparing preliminary draft of questionnaire.
5. Revised and protested the questionnaire.
Limitations
70
Although the research was conducted in a way to ensure accurate results but
certain errors might have occurred due to some unavoidable reasons. Some of
the limitations of the project are:-
Data collection
1. Non-response by some of the respondents.
2. Since the population is not homogeneous, some biasness might have
creped in.
3. The sample of convenience, thus it is not the true representative of the
complete.
MEASUREMENT ERROR
There was certain degree of misinterpretation by the respondents about the
points raised in the interview.
71
No. of Respondents In%
Males 70 54%
ANALYSIS&
INTERPRETAYION
72
Females 60 46%
Total 130 100%
Data Analysis and Interpretation
1. Gender wise profile:
Graph 1.1
Gender wise Profile
Male54%
Female46%
Male
Female
Interpretation:
As the above graph shows that there were equal male and female respondents,
males were little higher than females by only 4%.
2. Age wise Profile:
73
10-20 years
In %21-30 years
In %31-40 years
In %More
than 40 years
In % Total
Male 12 17% 28 40% 21 30% 9 13% 70
Female 14 23% 20 33% 16 27% 10 17% 60
Total 26 20% 48 37% 37 28% 19 15% 130
Graph 2.1
Age Wise Profile of Males Respondents
17%
40%
30%
13%
10-20 years 21-30 years 31-40 years More then 40 years
Interpretation:
As the above graph clearly depicts that most of males respondents
[40%] were youth as fall into the category of 21-30 years.
74
Graph 2.2
Age Wise Profile of Females Respondents
23%
33%
27%
17%
10-20 years 21-30 years 31-40 years More then 40 years
Interpretation:
As the above graph clearly depicts that most of females respondents
[33%] were also youth as they fall into the category of 21-30 years.
3. Occupation wise Profile:
75
Service In % Business In % Professionals In %Other [Students
housewives etc.]
In %
Male 28 40% 14 20% 9 13.% 19 27%
Female 10 17% 0 0% 8 13.% 42 70%
Total 38 28.% 14 10% 17 13.% 61 47%
Graph 3.1
Occupation Wise Profile of Males
40%
20%
13%
27%
Service Business Professionals Students
Interpretation:
As the above graph clearly shows that there were most of males
respondents [40%] were service category
Graph 3.2
76
Occupation Wise Profile of Females
17%
27%
13%
43%
Service Students Professionals Housew ife
Interpretation:
As the above graph clearly shows that there were most of females
respondents [43%] were housewives category
4. Income group wise profile:
77
Less than
Rs. 10,000
In % 10,000-
15,000
In % 15,000-
20,000
In % More than
20,000
In %Total
Male 37 53% 9 13% 9 13% 15 21% 70
Female 42 70% 4 7% 8 13% 6 10% 60
Total 79 61% 13 10% 17 13% 21 16% 130
Graph 4.1
Income Wise Profile of Males
53%
13%
13%
21%
Less then Rs. 10,000 10,000-15,00015,000-20,000 More then Rs. 20,000
Interpretation:
As the above graph clearly shows that there were most of males
respondents [53%] were income group of Rs. Less than Rs. 10,000.
78
Graph 4.2
Income Wise Profile of Females
70%
7%
13%
10%
Less then Rs. 10,000 10,000-15,00015,000-20,000 More then Rs. 20,000
Interpretation:
As the above graph clearly shows that there were most of females
respondents [70%] were income group of Rs. Less than Rs. 10,000.
5. Ranking of different flavors of soft drinks according to
choice
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of consumers:
Graph 5.1
Interpretation:
The above graph shows that Mango Flavor is preferred most by the male
customers than next is Cola & Lemon is least preferred by them.
The above graph shows that Orange Flavor is preferred most by the
female customers than next is Mango & Cola is least preferred by them.
6. Brand recall of different soft drink brands:
Ranking of Soft Drinks Flavors of Respondents
2
3
1
4
4
1
2
3
0 1 2 3 4
Cola
Orange
Mango
Lemon
Males Females
80
Brand
RecallCola Pepsi Thums up Fanta Slice Mirinda Limca Fruity Maza
Top of
the mind
recall
70% 60% 60% 65% 60% 40% 45% 55% 60%
Unaided
recall30% 40% 40% 35% 40% 60% 55% 45% 40%
Graph 6.1
Brand Recall of different soft drink brands
70
60 6065
60
4045
5560
30
40 4035
40
6055
4540
Pers
ent
Top of the mind recall
Unaided recall
Interpretation:
As the above graph shows that comparatively coke is at the top of the
mind recall by most of customers [70%] and next is Pepsi. In Unaided brand
recall Maza and Fruity.
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7. Ranking of factors that influence the consumer choice of
soft drink:
Factors Male Female
Taste 1 1
Price 2 5
Health 3 3
Weather 4 2
Social Gathering 5 4
Packaging 6 6
Ads & offers 7 8
Status 8 7
Graph 7.1
Factors that influence the consumer
1
2
3
4
5
6
7
8
1
5
3
2
4
6
8
7
0 1 2 3 4 5 6 7 8
Taste
Price
Health
Weather
Social Gathering
Packaging
Ads & off ers
Status
Rank
Male Female
Interpretation:
Taste ranked as first factor affecting consumer choice by both male &
female consumers. Price is ranked second by male consumers whereas health
factor is ranked by female consumers which affect their choice of soft drinks.
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8. Consumption per week by consumers:
Less than 5 times
In%6-10 times
In%More
than 10 times
In% Undecided In% Total
Male 47 67% 12 17% 2 3% 9 13% 70
Female 44 74% 8 13% 0 0% 8 13% 60
total 91 70% 20 15% 2 2% 17 13% 130
Graph 8.1
Average consumption per week by Males
67%
17%
3%13%
Less than 5 times 6-10 times More than 10 times Undecided
83
Graph 8.2
Average consumption per week by Females
74%
13%
0%13%
Less than 5 times 6-10 times More than 10 times Undecided
Interpretation:
From the above graph we can say that most of the consumers [70%] are
not having any regular schedule of consuming soft drinks. Both males [13%] &
females [13%] consumer said that it is undecided and only 1.54% consumer
said that they drink more than 10 times in week so it is not definite.
84
9. Quantity of consumption at once:
200ml. In% 300ml. In% 500ml. In%More than
500ml.In% Total
Male 23 33% 28 40% 19 27% 0 0% 70
Female 24 40% 24 40% 12 20% 0 0% 60
Total 47 37% 52 40% 31 23% 0 0% 130
Graph 9.1
Quantity of consumption at once by Males
33%
40%
27%0%
200 ml. 300 ml. 500 ml. More than 500 ml.
85
Graph 9.2
Quantity of consumption at once by Females
40%
40%
20% 0%
200 ml. 300 ml. 500 ml. More than 500 ml.
Interpretation:
From the graphs we can say that [Both males & females] majority of the
consumers [40%] prefer to drink these soft drinks in the quantity of 300 ml. at
once & than next is 200 ml. with [37%] but there is big difference in consumer
response for the rests of the options.
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10. Drinking Pattern:
With group In% Alone In% Total
Male 58 82.86% 12 17.14% 70
Female 54 90% 6 10% 60
Total 112 87.69% 18 12.31% 130
Graph 10.1
82.85%
17.14%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
With group
Alone
Drinking Pattern of Males
Graph 10.2
90%
10%
0% 20% 40% 60% 80% 100%
With group
Alone
Drinrking Pattern of Females
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Graph 10.3
87.69%
12.30%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
With group
Alone
Drinking Pattern of all Respondents
Interpretation:
From the above it is clearly visible that mostly customers [87.69%]
enjoy drinking these soft drinks when they are with group.
88
11. Area of consumption:
Home In %Outside
locationIn %
Cinema
HallsIn %
Social
Gathering
In
%
B/C
partiesIn %
Male 14 20% 30 43% 12 17% 5 7% 9 13%
Female 20 33% 18 30% 18 30% 4 7% 0 0%
Total 34 26% 48 37% 30 23% 9 7% 9 7%
Graph 11.1
Area of consumption for Males
20%
43%
17%
7%13%
At home/off ice At outside locationsAt cinema halls At social gatheringAt corporate/business parties
Graph 11.1
Area of Consumption for Females
33%
30%
30%
7% 0%
At home/off ice At outside locationsAt cinema halls At social gatheringAt corporate/business parties
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Graph 11.3
Area of Consumption
26%
37%
23%
7% 7%
At home/off ice At outside locationsAt cinema halls At social gatheringAt corporate/business parties
Interpretation:
As the about graphs show that mostly [37%] customers prefer drinking at outside location & at home/office and cinema halls. This means customer drink these drink whenever they go for outing locations.
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12. Consumer choice when multiple choices are given without price.
Soups In %Hot
drinksIn %
Soft Drinks
In %Fruit
juicesIn % Total
Male 14 20% 9 13% 28 40% 19 27% 70
Female 16 27% 10 17% 20 33% 14 23% 60
Total 30 23% 19 15% 48 37% 33 25% 130
Graph 12.1
Consumer choice when multiple choices are given without price for Males
20%
13%
40%
27%
Soups Hot Drinks Soft Drinks Fruit Juices
Graph 12.2
Consumer choice when multiple choices are given without price for Females
27%
17%33%
23%
Soups Hot Drinks Soft Drinks Fruit Juices
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Graph 12.3
Consumer choice when multiple choice are given without price
23%
15%
37%
25%
Soups Hot Drinks Soft Drinks Fruit Juices
Interpretation:
From the above graph it is seen that when multiple choice are given to customers without any charge for that i.e. when price factor is excluded, then more than 37% customers prefer to drink soft drinks and next is Fruit juices, soups, tea/coffee respectively.
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13. Sources of Information:
News Paper
In %T.V. ads
In % Hoarding In %By
retailersIn % Total
Male 12 17% 42 60% 12 17% 4 7% 70
Female 6 10% 42 70% 10 17% 2 3% 60
Total 18 14% 84 64% 22 17% 6 5% 130
Graph 13.1
Source of information for Males
17%
60%
17%6%
New spapers T.V. ads. Hoardings By retailers
Graph 13.2
Source of information for Females
10%
70%
17% 3%
New spapers T.V. ads. Hoardings By retailers
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Graph 13.3
Source of information
14%
64%
17%5%
New spapers T.V. ads. Hoardings By retailers
Interpretation:
From the above graph it is clearly visible that main source of information to customers regarding soft drinks is T.V. ads according to 64% customers.
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14. Influence of Brand Ambassador Consumer choice of Soft drinks.
Yes In % No In % TotalMale 49 70% 21 30% 70
Female 24 40% 36 60% 60Total 73 57 130
Graph14.1
70%
30%
40%
60%
0%
20%
40%
60%
80%
100%
Males Females
Influence of Brand Ambassador consumer choice of Soft drinks
No
Yes
Interpretation:
From the above graph clearly depicts that here is a big difference among the response of male & female customer, as in the opinion of most of the male customers [70%] Brand ambassador influences their choice whereas in the opinion of female majority [60%] said that there is no impact of any Brand Ambassador upon their choice.
95
15. Preferred Celebrities as Brand Ambassador according to Consumers:
Preferred Celebrities as Brand Ambassador according to Males
43%
17%
33%
7%
Bollyw ood Sports Both Other
Graph 15.2
Preferred Celebrities as Brand Ambassador according to Females
27%
46%
20%7%
Bollyw ood Sports Both Other
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Graph15.3
Preferred Celebrities as Brand Ambassador
35%
31%
27%
7%
Bollyw ood Sports Both Other
Interpretation:
As the graph depicts that highest 35% people said that bollywood celebrities should be the brand ambassador of soft drinks and than 27% were with both but here is big difference among the choice of male & female customers.
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16. Most preferred sales promotion tools/techniques:
Buy 2 get 1 free
Scratch/ Magic cards
Price discounts
Extra Quantity
offer
Something free
Total
Male 12 7 30 14 7 70Female 14 8 22 10 6 60
Total 26 15 52 24 13 130
Graph 16.1
Most preferred sales promotion tools/techniques by Males
Companies should maintain the taste of it’s flavored drinks should keep
improving the taste & quality of it’s drinks, companies may also launched
some innovative mixed flavors of drinks where two flavors in one drink
can be provide like orange-pineapple etc. it will give a different taste of
customers.
Reduction in price :
Price is also major factor of consumer’s choice of soft drinks. So
companies should try to decrease it’s price by decreasing it’s
extravagant expenditure in advertisement to trap the market of those
customers whose choice is very much affected with the price of soft
drinks.
Diet drinks :
Health is also a major factor influencing consumer choices of many
consumers. So fruit juice are giving tough competition to soft drinks.
Companies should advertised its product in a manner in which it’s
reflects that consuming their drinks will not harm any body. As coke &
107
Pepsi have already lunched it’s drinks for the segment which is very
much health conscious i.e. Diet Coke & Diet Pepsi respectively which
are fat free. But companies should launch diet drinks in other flavors
also. Especially in mango flavor as it is preferred by most of the
consumers. Companies should try to win the trust of consumers that
these drinks are not having pesticides contents more than limits by
sponsoring some rational appeal based advertisement.
Quantity discounts :
Companies should try to increased the sales of it’s drinks for the purpose
of increasing it’s offering in parties. As in parties consumers mostly
prefer soft drinks even after having multiple choices, companies should
provide quantity discount as in parties more quantity is purchased at
once.
Humorous, creative & sensible ads :
As companies are already promoting their brands through T.V. ads but
companies should take very much care of the target segment & should
ensure that no ad should hurt the person directly or indirectly. Now a
day’s ad with humorous appeals are like by viewers very much so there
should be humorous creative ads on T.V.
Selection of brand ambassador :
Companies should get the endorsement from both Bollywood & Sports
celebrities as most as the people like those ads where both of these
celebrities endorse the product together.
Sales promotion :
For sales promotion companies should give the price discount as it is
preferred by most of the customers. In of seasons companies already
108
provide but if in the summer companies should price discount then it can
be boost up there sales both in Rupees & volume. Companies should
bye to get one free schemes also some complementary product also
may be given with big bottle i.e. like two ltr. Bottle of soft drinks
companies may give wafers & snakes etc.
Brand loyalty :
As there were not more customers who are brand loyal & easily switch
on to other brands. So companies should strengthen it’s distribution
network & ensure the proper supply & arability of there drinks to prevent
people switching on to other brands, companies should also organized
activities and should do programs, seminars for social & moral causes to
build it’s brand image & brand loyalty amongst the customers.
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SWOT ANALYSIS OF ORGANISATION
Strengths:
Those are large Organization Capturing a Broad Market It is Multinational Company Proper Utilization of Man Power Product are highly demanded in Market
Weaknesses:
Service is not up to the mark Unable to penetrate a large no. Of rural areas Unable to break up the monopoly of competition Reducing the brand loyalty of the consumer
Opportunities:
Large number of consumer Large Market segment By removing weaknesses company could be ultimate leader
Threats:
Existence of Local Soft Drink Boycott of soft drinks due to Swedishi Movement Different offers and Schemes provided by the other soft drink companies
110
Annexure
“Questionnaire for the study of factors affecting consumer choice of soft-drinks”
Name………………………………………………………………………Gender: [ ] Male [ ] FemaleAge group: [ ] 10-20 years [ ] 21-30 years
[ ] 31-40 years [ ] More than 40 yearsOccupation: [ ] Service [ ] Business
Income group (p.m.) [ ] Less than Rs.10,000 [ ] 10,000-15,000 [ ] 15,000-20,000 [ ] More than Rs. 20,000
1. Please rank the following flavors of soft drinks that you like most. Cola_______ Orange________ Mango_____ Lemon________
2. Please name the brands of soft drinks, which you remember.
_________________________________________________
3. Please name the brand/s of soft drinks that you like most for following flavors. Cola_______ Orange________ Mango_____ Lemon________
4. Please name the following that influence your decision when you purchase a soft drink? (On 1-8 scale, where 1 is highest & 8 is lowest rank)Taste________ After effects/Health_________Price________ Occasion/Social Gathering_______Packaging______ Advertisement & offers_________Weather/Heat_____ Status__________
5. How many times you drink these beverages in a week?[ ] Less than 5 times [ ] 6-10 times[ ] more than 10 times [ ] Undecided
6. How much quantity of these do beverages do you consume at once?[ ] 200 ml. [ ] 300 ml[ ] 500 ml. [ ] More than 500 ml..
7. You enjoy drinking these drinks?[ ] With group [ ] Alone
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8. Mostly where do you consume such drinks?[ ] At home/office [ ] At outside locations[ ] At cinema halls [ ] At social gathering[ ] At corporate/business parties [ ] others_____
9. In a party, if following drinks are offered to you then whom drink you would like to take?[ ] Soups [ ] Hot drinks/coffee/Tea[ ] Cold/Soft drinks [ ] Fruit juices
10. How do you get information regarding the different brand & flavors of these beverages available in the market?[ ] Newspapers ads. [ ] T.V. ads.[ ] Hoardings & Banners [ ] By retailers[ ] Other________
11. Dose any brand ambassador of these drinks influence your choice?[ ] Yes [ ] No
12. Please name any brand & its brand ambassador.Brand name_____________ Brand ambassador ____________
13. According to you, who should be the brand ambassador for soft drink?[ ] Bollywood celebrities [ ] Sports celebrities[ ] Both [ ] Other celebrities_______
14. Which of the following sales promotion tools/techniques do you like most for soft drink?[ ] Buy two get 1 free [ ] Scratch/Magic card[ ] Price discount [ ] Extra quantity offer[ ] Something free [ ] Others__________
15. Do you easily switch on to other brand when you do not get your favorite & desired brand/s for these drinks?[ ] Yes [ ] No
Thanks very much for your kind support & cooperation.