Acknowledgements

As we complete this project we praise God the Almighty Father for giving us mental strength and good health, which we consider very important for our successful completion.

We thank our director Rev. Fr. Basani Prakash for allowing us to take up a useful project in an industrial establishment so that we may gain first hand experience.

We sincerely thank our respected principal, Mr. R. L. Murthy for his encouragement and for recommending us for the project.

We express our gratitude to our external guide Mr. ……………

In a special way for readily accepting our request for doing this project at his esteemed organization and assigning a very useful and challenging project. He has taken special interest in supervising our project and evaluating our work from time to time. We also thank him for allowing us to freely use the company resources.

We thank Mr. Kalyan Reddy, Lecturer CJITS, for accepting to be our internal guide and supporting all the way. He took pains for understanding our project and suggested ways to improve the project.

His encouragement and guidance are invaluable.

We thank our Head of the Department Mrs. Uma N. Dulharre, for accepting our project and organizing internal seminars for our project. Her deadlines were instrumental for the timely completion of the project.

We thank Mr. M. Vijay Chandra Rao, Software Engineer, Wipro Technologies for evaluating us by assigning a mini-project prior to the actual project, which helped us gain self-confidence and team spirit.

We also thank the entire faculty and students at CJITS who participated in the project seminars and indirectly helped us by the way of their encouragement and constructive criticism.

Finally we acknowledge the support and encouragement we received from our family members without which the project work might not have been so smooth.

Dt: 26-04-2003

TO WHOM SO EVER IT MAY CONCERN This is to certify that K. RAMESH, is a bonafide student of the

Aurora School Of Business Management, Chikkadapally, Hyderabad.

He has completed his project work titled “ Consumer Perception on

Soft Drinks with special reference to PEPSI Co. ” under my

guidance successfully through Hyderabad Beverages Pvt. Ltd., in our

organization from 15-03-2002 to 25-04-2003. He is found to be very

dynamic and hardworking, we wish him a bright future and success.

(K.V.KISHORE)

G.M. Sales & Marketing.

PEPSI Hyderabad Beverages Private Limited Regd. Off. : 105, 2nd Floor, E – Block, Surya Towers, S.P.Road, Secunderabad. – 500 003

: 26326222 (6 lines) Fax: 040 – 7894188

T a b l e o f C o n t e n t s

1. ABSTRACT OF THE STUDY 1

2. INTRODUCTION TO SOFT DRINK INDUSTRY 4

3. PROFILE OF HYDERABAD BEVERAGES (P) Ltd. 15

4. AN OVERVIEW OF CONSUMER BUYING BEHAVIOUR 19

5. OBJECTIVE OF THE STUDY 30

6. RESEARCH METHODOLOGY 31

7. CONCLUSIONS 32

8. SUGGESTIONS 34

9. LIMITATIONS 36

10. APPENDAGES 37

11. SURVEY ANALYSIS AND INTERPRETATION 40

12. BIBLIOGRAPHY 54

A Project Report On

CONSUMER PERCEPTION ON SOFT DRINKS WITH SPECIAL

REFERENCE TO PEPSI CO.

A Dissertation submitted in partial fulfillment of the requirement for the award of the Degree of

“MASTER OF BUSINESS

ADMINISTRATION”

By

K. RAMESH (ROLL NO. 4201112)

Under the Guidance of MS. AATHIYA

AURORA SCHOOL OF BUSINESS (Affiliated to OSMANIA University)

Chikkadapally, Hyderabad.

2001 - 2003

- 1 -

ABSTRACT OF THE STUDY

The new economic policies of the Government of India

adopted in the mid eighties were further impetus by the early

nineties. The Indian market has under gone considerable change,

as a direct consequence of many of these policies and soft drink

industry is no exception to this.

Keeping the above mention perspective in the background,

the researcher has selected soft drink market, since the marketing

task has become more challenging and intensive competition as

opened up new vistas.

Companies are evolving marketing strategies by studying the

demands of the market place increasingly penetrating in to

appropriate market segments introducing differentiated products to

improve their market share. The soft drink market has achieved an

accelerated growth in the past decade.

Soft drink includes all type of non-alcoholic, carbonated

flavored or otherwise sweetened beverages. The entry PEPSI and

the re-entry of COCA-COLA in the Indian market are inevitably

facing stiff competition but the ultimate winner is

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customer/consumer. This as lead the researcher to study the

perception of consumers towards different brands of soft drinks

and to gauge out the promotional strategies being adapted by

marketers to lure promiscuous buyers and win a large share in the

markets.

The Cola wars are intensifying and bringing manifold

changes in the soft drink industry. The researcher has conducted a

detail survey, interpreting the responses to study the perceptions of

the consumers. Now the people with changing life styles and

increase income labours have made the soft drink a comman man

drink.

Even though the existing system of marketing of soft drink

has not tapped such a big market in the interiors of the countries

specially the rural areas, as marketing in the sub urban and rural

areas is developing slowly.

Despite the soft drink industry is growing at a very healthy

pace and stands at 18% per annum. The market for cool drinks

comprises of teens and youngsters in the 16-25 years age group

who are largest consumers of the soft drinks in the country

followed by 26-35 years age group people and adults in the age

- 3 -

group of 35 and above, followed by the age group of below 15

years hence, companies must develop their product and marketing

strategies to suit their wants and needs.

- 4 -

INTRODUCTION TO

SOFT DRINKS INDUSTRY

HISTORY

The history of soft drink market in India started way back in

1949 with the introduction of soft drink by parle group, followed

by other manufactures of the soft drinks like pure drinks Coca-

Cola, Mc-Dowell, Duke, etc, after the exist of Coca-Cola in 1978,

parle become the undisputed market leader till recent past and

early nineties. In 1990’s reemerges of Pepsi gave new dimension

to soft drink industry.

CHANGING FACTS OF SOFT DRINK INDUSTRY

Initially when soft drinks were introduced in the 19th century

it was positioned as a thirst quenching drink but due to the

changing times it is now positioned as a fun drink. Soft drinks are

consumed by almost every section of the society for their cool and

tasty attributes. The soft drinks in India were available only in

200ml with Thums-Up, first 250ml was to counter the entry of

Pepsi and secondly to increase the market share. The 250ml

Thums-Up was introduced before the summer of 1989 as a Maha

Cola with simple and clear position as more Cola, in same price. It

was the clear conveying of a consumer of benefit and that did the

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trick hands the sales soared. The Campacola reacted by introducing

300ml bottle in Delhi but this did not work as the price was not

same and consumer’s benefit was not clear. But with the success of

the 250ml bottle Parle to decided to carry on the attract to its

logical conclusion in 1990’s, by then Lehar Pepsi made its entry

and was doing well in Delhi. So Thums-Up came with a jumbo

offer of 500ml. Concept developed by Pale group in India was

followed by Pepsi and later on such tricks were common in soft

drink industry in India, for their bottle supremacy, defaulting

benefits for consumers and increasing their market share. Pepsi

foods are now a head of their competitor by introducing 200ml and

2.5 liter plastic bottle (economy pack).

In 1993 Coca-Cola again re-introduced himself in Agra, and

after that they purchased Parle soft drink group with unbelievable

price. The massive entry was threatened the Pepsi cola who was

the market leader at that time and Pepsi was introduced himself

again as a most preferred Cola but the strategies of Coca-Cola was

so wrong due to that up to now the company is in the loss. But the

strongest weapon in its hand is Thums-Up. In starting the Coca-

Cola Co’s, try to dominate upon Thums-Up, so that they were

changes in taste and slow down the promotional activities. But

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later they changed their strategies and again trying to position it

with slogan of “I WANT MY THUNDER”.

In case of Lemon’s drink Limca was the only brand available

in cloudy lemon flavor with enjoyed monopoly for almost two

decades, because the consumers associated this drink with the

traditional Nimbu Pani, and isotonic salts it contains do indeed

help quench thirst. The Pepsi attacked the Gold Spot in 1990 and

1991 by introducing Lehar 7up and Marinda, also felt the need of

attacking its competitor parle Limca by introducing Lehar Marinda

also felt the need of attacking its competitor Parle Limca by

introducing Lehar Team, actually the year 1993 saw the emergence

of Lehar teem 250ml bottle.

PRESENT SENERIO IN INDIA

The government considered soft drink as a industry due to

this the excise duty levied by the government of soft drink is very

high. The bottle cost from Rs 10-15, while pet bottles costing from

Rs 20-45. The soft drink industry has an annual sale exceeds to

about 800 cores and most of the bottling company have been

flourishing.

- 7 -

Since the last decade all the soft drink companies have grown

and expanded their particular brand in the market for better

consumer services.

According to IMRB retails tracking study share of bottle soft

drink market in May 2003, Pepsi brands have 47.6%, Coca-Cola

brands have 49.5% and others have 2.9%.

Share of Cola Segment Share of Orange

Segment

Share of Lemon

Segment

Pepsi – 48.7% Mirinda Orange–54% Limca – 74%

Coke – 27.1% Fanta – 44% Mirinda Lemon – 26%

Thums up – 23.1% Gold Spot – 2% -

Campa Cola – 1.1% - -

The capacity of present India soft drink market is around 150

million cases.

The per capita consumption in India is 6 bottles per annum.

COMPLEXCITIES IN THE SOFT DRINK MARKET

The soft drink business in among the most complicated

because of following reasons:

1. At the most basic level, it is a two way business in way

that when a consumers buys a cigarette or soap, that

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ends the marketing story, where the soft drink bottles

have to be collected back.

2. It is a seasonal product and sells strongly just for six

months.

3. Value edition is done by retailer by way of chilling the

bottle

4. It is impulse by consumer loyalty is uncertain.

INDUSTRY TO THE COMPANY

Pharmacist Calerb D.Bradham invented Pepsi Cola in 1893.

Pepsi is a U.S $ 28 billion company with headquarters in New

York.

PEPSI CO. WORLD WIDE OPERATIONS

Pepsi Co operates on a global basis. 170 + countries with an

employ force of 338000. Pepsi Co. is the third largest company in

the U.S and amongst the 15th largest in the world.

U.S fortune 50 rank in their companies annual revenue at $28

billion and world wide operations more than 150 countries with

annual profit of $ 2.5 billion.

- 9 -

PEPSI CO’S OPERATING COMPANIES ARE

1. PEPSI Cola North America.

2. PEPSI Cola International.

3. PEPSI Co Wine Sprits.

4. PEPSI Co foods International.

5. Fritolay.

6. Pizza Hut

7. Kentucky Fried Chicken.

8. Taco Bell.

Having the $ 28 billion+ annual sales.

PEPSI : THE PAST AND THE PRESENT

In the Century since James Henry king, first gave his nod of

approval millions of people all over the world have enjoyed the

great taste of Pepsi-cola today, Pepsi –Cola is sold is more then

170 countries and accounts for about one quarter of the world’s

soft drink. More the 70% of Pepsi’s sales are from North America,

where it enjoyed strong growth and increased volume.

- 10 -

Our well-known brands include Pepsi, Diet Pepsi, Pepsi

One, Mountain Drew, Mug, All sport, Lipton Brisk and Aquafina.

In addition, salty snacks and juices are staples of out sister

divisions, Frito-lay and Tropicana. One of the biggest factors in

long-term success of consumers Products Company is whether

more people fall in love with your products. Each year Pepsi-cola

account for nearly one –third of total soft drink sales in the US, a

consumer market totaling about 454 billion .in 11992 Pepsi –Cola

formed a partnership with Thomas J.Lipton Co. today Lipton is the

biggest selling ready-to-drink tea brand in the united states.

Outside the United States, Pepsi-Cola company’s soft drink

operations include the business of 7-up international. Pepsi-Cola

began its selling its products internationally in 1934 with is

operations in Canada. Operations grew rapidly beginning in the

1950’s. Today Pepsi-Cola products account to brands about

A quarter of all soft drink sold internationally. In addition to

brands about marketed in the United States, major products include

Mirinda and Pepsi Max, Saudi Arabia, Spain, Thailand, United

Kingdom. The company has also established operations in the

emerging markets of the Hungary, India, Poland, Slovskis and

Russia, where Pepsi-Cola was the first US consumer product

- 11 -

to be marketed. Pepsi-Cola provides advertising, marketing, sales,

and promotional, support to Pepsi-Cola bottlers and food service

customers. This include some of the world’s best loved and must

recognized advertising. New Advertising and exciting promotions

keep Pepsi-Cola brands young. The company manufactures and

sells soft drink concentrate to Pepsi-Cola bottlers. The company

also provides fountain beverage products.

PEPSI CO. MISSION STATEMENT

“Pepsi Co overall mission is to increase the value of our

shareholder’s investment. We do this through sales growth, cost

control and wise investment of resources. We believe our

commercial success depends up on offering quality and value to

our customers and environmentally sound, and providing a fair

return to out investors while adhering to the highest standrards of

integrity”.

THE PEPSI POWER:

The year was 1993,and ‘the real thing’ was about to stage a

come back in the Indian market after a16 –year absence. At Pepsi

Foods headquarters in Mohan Deo Building in New Delhi, the

hearts of Pepsi’s top brass were knocking furiously at their Ribs.

An internal market research report by Pepsi had shown that if Coke

- 12 -

were to be made to be available in the country –more than 70% of

Pepsi’s customers would shift to four years of an indifferent

presence, after which it had barely begun to establish itself in the

India bottled soft drink market.

The going gotten tough many a time, but the tough had been

on the roll. Eight years have passed by Pepsi still exists, with its

head high. Ron Coughlin .VP, International marketing, Pepsi-Cola

says “the India marketing Team is the Pepsi world” It’s been

blood, toil, tears and sweat of all stake holders, Pepsi executives,

bottlers, ad agency, Hindustan Thompson Associates and Yes,

Sachin Tendulker and Shahrukh Khan and, “yeh dil still maange

more”

Ever since Pepsi uncorked its fizz- are you ready for the

magic? It did in styles .it was grand unveiling, much like the icon

Pepsi used back in 1932, to discover what brand stood for. The

icon never played cricket, it never got its hair burnt like Michael

Jackson, it never dated post spice like David Beckham ….. Pepsi

and P, the Pepsi cops. It was Pepsi, which was first to introduce a

marketing jungle, the first to foray into musical marketing. So what

they did way back then is still paying off.

- 13 -

The Coke’s second coming changed the attitude pf Pepsi

towards the way it looked of the entire marketing battle and its

own existence in India. It became competitive; it started to believe

in direct attack. While coke may have found it difficult to find a

common theme that ran through all its advertising, it got

aggressive in India with its take over of parle brands ThumsUp,

Gold Spot and Limca. Another big blow, another time: Pepsi lost

out in its bid for the rights to the cricket world cup 1996.What

followed is history; the high – decibel, out-of-the box advertising

by Pepsi- “nothing official about it”

The real growth for both Pepsi and Coke can come from

increasing the market. Though the battles over market share

continue to rage and Hrithik Roshan and Shahrukh Khan will fight

it out, the future will belong to the one that has its eye on per capita

consumption. It’ll obviously be market growth over market share.

Looking at the different strategies adopted by both these

companies one can that Pepsi has adopted challenged strategy to

counter its ‘competitor’ the Coke. Whatever the outcome of the

clash between the soft drink giants. There is no doubt that both

Pepsi, that has declared bankruptcy twice in the past, and coke, that

- 14 -

launched as a caramel colored syrup in 1886.Will spring many

more surprises on the Indian consumer leaving him wondering

whether his cola is the “Right Choice” or whether “it’s the real

thing”?

- 15 -

PROFILE OF HYDERABAD

BEVERAGES PVT .LTD

Pepsi mostly supplies its products through franchises. It has tie-

ups with the local bottling companies.

Hyderabad beverages Pvt .Ltd, is an operating franchises for

Pepsi foods India Limited since 1991, when Pepsi was launched in

Hyderabad on 7th march 1991.It undertakes the bottling and

distribution functions for the company. Mr. S.K. Jaipuria,

chairman, heads Hyderabad Beverages Pvt. Ltd.

Hyderabad Beverages Pvt. Ltd under takes production

operations such as “Bottling of soft drinks”. They have their own

products units. Hyderabad Beverages Pvt. Ltd, is also responsible

for local advertising and other promotional activities .The day to

day administrative activities is also carried out on an independent

basis, sales, marketing, and distribution of the product depends on

the sole discretion of Hyderabad Beverages Pvt Ltd.

Hyderabad Beverages Pvt Ltd. uses the indirect market

channel. It supplies its products through various outlets by the

- 16 -

retail system. It adopts 3-way market distribution for supply of

brands.

Market distribution of various brands of Hyderabad

Beverages Pvt. Ltd.,

1. City market

2. Up country markets [districts]

3. Credit outlets

Hyderabad Beverages Pvt. Ltd. uses almost the same type of

distribution channels in the various market with slight variations in

the mode of transportation etc. The distribution channels for

various markets can be outlined thus

1. Distribution Channels for city market:

Factory –carrying forward agents- Dealer or

distributor-retailer-consumer

2. Distribution channels for the country market:

Factory-Carrying forward agents-Local distribution-

Retailers-consumer.

3. Distribution channels for credit outlets:

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Factory-outlets-consumers

ORGANISATION PROFILE OF PEPSI:

Pepsi Company Inc., Limited was launched over a hundred

years ago, in the US, though it entered the international market

with a move to Russia only in 1959.

Today Pepsi is one of the largest Multinational companies

with a turnover of 22 billion dollars of allots business worldwide.

Pepsi Co Inc., Limited owns Pepsi foods.

Pepsi foods entered the Indian Market in 1990’s is a joint

venture with Voltas and Punjab Agro. In1992-1993 the total

investment in India Organics Ltd., Pepsi has introduced Rs 75

crores for pet bottles.

The head quarters of Pepsi foods is situated in down town

Delhi, since Pepsi’s market reach is small, the company plans to

bridge this gap quickly by adding its own bottling plants an at the

same time increasing the capacities of the existing plants.

- 18 -

The company plans have 4 company-managed operations at

Mumbai, Kolkata, Chennai, and Ahmedabad. It has bottling

facilities (both owned & franchised) located in various parts of the

country. The company intends to spend RS. 900 crores or more in

lieu of its plans to increase its market share.

The company has three business divisions.

• Beverages

• Exports

• Foods

Pepsi foods Ltd., has its concentrate, Snacks, fruits

processing facilities in the Punjab state, Pepsi claims to be “The

worlds favorite salty snacks company always providing great value

to consumers.”

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AN OVERVIEW OF

CONSUMER BUYING BEHAVIOR

Consumer buying behavior refers to the buying behavior of

the final consumer, individuals and households and who buy the

goods and services for personal consumption.

The consumers for the selection of the soft drink either go for

brand loyalty or they choose a brand based on retailer’s advice.

There are few buyers who buy in bulk for parties. In this way the

individual might be trying to choose or cater to his perception of

his guests preference. A brand can convey up to six levels of

meanings

1. Attributes

2. Benefits

3. Values

4. Culture

5. Personality

6. User

Consumer is the heart of any marketing agency, hence

marketers are now spending money on consumers research that

- 20 -

includes the study of what they buy, when they buy, how often

they buy, and how often the consume or use it.

A MODEL OF BUYING BEHAVIOR:

A consumer’s decision to purchase a particular product or

service is the result of complex interplay of variables. Marketing

and environmental stimuli enter the buyer’s consciousness. The

buyer’s characteristics task decision process leads to certain

purchase decisions. The marketer’s task is to understand what

happens in the buyer’s black box or consciousness between the

arrival of outside stimuli and the buyers purchase decision

(buyer’s black box model). They must answer two questions-

1. How do the buyers characteristic- cultural, social,

personal, psychological influence buying behavior?

2. How does the buyer make purchasing decision?

Marketing Stimuli

Other Stimuli

Product Economic Price Technological Place Political Promotion Cultural

- 21 -

CHARACTERISTICS AFEECTING THE CONSUMER

BEHAVIOR:

Consumer behavior is affected by a host of variables ranging

from personal motivations, needs attitudes & values, personality

characteristics, socio-economic and cultural backgrounds, age, sex,

professional status to social influences of various kinds exerted by

family friends, colleagues and society as a whole. The

combinations of these various factors produce a different impact

on each one of us manifested in our different behavior as

consumers. Psychological factors such as individual consumer

needs and motivations, perceptions, attitudes, the learning process

and personality characteristics are the similarities, which operate

Buyer’s Black Box Buyer Buyer Charact- Decision eristics process

Buyer’s Response Product choice Brand choice Dealer choice Purchase timing Purchase amount

- 22 -

across the different types of people and influence their behavior.

Among the social influences affecting behavior we can classify the

influences of family friends, leaders and social class to which the

consumer belongs.

MODEL OF FACTORS INFLUENCING CONSUMER

BEHAVIOUR

A. CULTURAL FACTORS: These exert broadcast and

influence on consumer behavior.

CULTURAL Culture Sub-Culture Social Class

SOCIAL Reference groups Family Roles & Status

PERSONAL Personality Age & Life cycle stages Occupation Income Lifestyle

PSYCHOLO-GICAL Motivation Perception Learning Beliefs & Attitudes

B

U

Y

E

R C

H

A

R

A

- 23 -

1. Culture: The set of basic values, perception, wants and

behavior learned by a member of society from family

and other important institutions. Markets should always

try to spot cultural shifts in order to discover new

products that might be wanted.

2. Subculture: Each culture contains small subculture i.e.,

group of people with shared value system based on

common life experiences and situations.

Ex: Nationalities – Indian, Italian, American, and

European.

Religion – Hinduism, Jainism, Christianity, Islam.

3. Social Class: These are relatively homogenous and

enduring division in a society which are hierarchically

ordered and whose members share similar values,

interests and behavior such as upper, middle and lower

class.

- 24 -

B. SOCIAL FACTORS: A consumer’s behavior is also

influence by social factors like reference groups, family,

roles & status.

1. Reference Groups: A person’s reference group

consists of all the groups that have a direct or an

indirect influence on the person’s attitude or behavior.

These include primary group, secondary group,

aspirational group, dissociative group and opinion

leaders. The importance of reference group influence

varies across products and brands.

2. Family: Family members constitute the most influential

primary reference groups shaping up buyer’s behavior.

a. Family of orientation consists of one’s parents.

b. Family of procreation consists of one’s spouse

and children.

3. Roles & Status: A role consists of activities that a

person is expected to perform according to the persons

around him or her. Each role carries a status reflecting

the general esteem given to it by the society. People

- 25 -

choose products that communicate their role and status

in society.

C. PERSONAL FACTORS: Consumer’s purchase decisions

are also affected by his personal characteristics such as age,

sex, and stage in family life cycle, his overall self-concept.

1. Age & Life Cycle Stage: People buy different goods &

services over their lifetime. Marketers often define

markets in terms of the life cycle stage.

2. Occupation: A person’s consumption pattern is

influenced by his/her occupation whether it include

blue-collar workers and white-collar workers.

3. Income: Borrowing power, attitude towards spending

verses saving, personal income determines the

purchasing motive of the customer.

4. Life Style: A person’s pattern of living as expressed by

his activities, interests and opinions influence consumer

behavior.

- 26 -

5. Personality & Self Concept: By personality and self-

concept, we mean the person’s distinguishing

psychological foundations that lead to relatively

consistent and responses to his or her environment.

D. PSYCHOLOGICAL FACTORS: A person’s buying

choices are also influenced by four major psychological

factors – motivation, perception, learning, beliefs & attitudes.

1. Motivation: A person has many needs at any given

time. Some needs are biogenic and others are

psychogenic. These needs are useful for the marketer to

identify what generic level needs; his product is capable

of fulfilling and accordingly positions his product and

backs it up with relevant marketing inputs.

2. Perception: Perception is the process by which an

individual selects, organizes and interprets information

inputs to create a meaningful picture of the world.

There are three aspects of perception – selective

exposure, selective distortion, and selective retention.

- 27 -

3. Learning: When people act, they learn. Learning

describes changes in an individual’s behavior arising

from experience.

4. Beliefs and Attitudes: Through acting and learning

acquit their beliefs and attitudes that is a descriptive

thought that an individual has about a product, service,

idea or practice is belief and enduring and learning to

act in a particular consistent way with regard to a given

object or idea is attitude.

CONSUMER DECISION PROCESS

A decision is the selection of an action from two or more

choices. There are five stages in buyers decision process-

1. Problem Recognition: The consumer buying process starts

when the buyer recognizes a problem or need. The buyer

senses a difference between his existing state and his actual

state desired. The need can be triggered by internal stimuli

like hunger, thirst or external stimuli like advertisement.

2. Information Search: An aroused consumer will be inclined

to search for more information through personal,

- 28 -

commercial, public or experiential sources. Through

gathering information the consumer learns about competing

brands and their features. Competing brands and their

features. A company must strategies to get its brand into

consumer’s choice set.

3. Evaluation of Alternatives: Consumer evaluates product

judgments based on conscious and rational basis. The

consumer develops brand beliefs about where each brands

stands on each attribute i.e., brand image.

4. Purchase Decision: In the evaluation stage, the consumer

forms preferences among the brands in the choice set. The

consumer may also form an intention to buy the most

preferred intention and purchase decision –a) Attitude of

others. b) Unanticipated situational factors.

5. Post purchase Satisfaction Or Cognitive Dissonance:

After purchasing the product, the consumer will experience

some level of satisfaction or dissatisfaction. The marketer’s

job doesn’t end when the product is bought but continues

into the post purchase actions, post purchase product use and

- 29 -

disposal. A dissatisfied consumer may either take public or

private action.

MODEL OF BUYER DECISION PROCESS

Problem Recognition

Information search

Evaluation of alternatives

Purchase intention

Attitudes of others Unexpected situational factors

Purchase Decision

Post purchase Behavior

- 30 -

OBJECTIVE OF THE STUDY

The study has been conducted in twin cites and the

respondents chosen randomly. The sample size has been limited to

100, which may restrict the scope and complexity of the study. The

scope of the project could be broadened if the project duration is

extended and the team strength be raised. The primary objective of

the report is to study the attributes, which a consumer considers

important while taking decision to purchaser soft drink.

1. To find out the relative position of various brands in market.

2. To find out the top of the mind awareness level of soft drink

among consumers.

3. To find out the medium which is most effective in reaching

the consumers.

4. To find out the most popular point of purchase.

5. To identify the age group which consume the soft drink

more.

6. To know what are the factors, which influence towards brand

choice.

7. To identify the factors influencing the consumption pattern.

- 31 -

RESEARCH METHODOLOGY

RESEARCH DESIGN – It involves survey of

consumers, understanding the market and changing

trends by Data Survey

DATA SOURCE – The primary data was collected

from the consumers and secondary data through various

mediums.

RESEARCH INSTRUMENT – The research

instrument used was a questionnaire backed by personal

interview for data collection.

SAMPLE SIZE – 100 for consumers.

SAMPLE AREA – Sample size of 100 members

comprised of and different areas of twin cities.

SAMPLING METHOD – Convenience and

judgmental.

- 32 -

LIMITATIONS

The survey was conducted in twin cities only, so the data

collected can be generalized.

The survey was conducted in starting of summer, due to

which consumption of soft drink was influenced. So there

was a seasonal constraint.

The consumers/customers sample size is 100 (male-60 and

female-40), because of time and financial constraints. Hence

the data may not be representation on the entire population.

Even though every care is taken to formulate the

questionnaire, some errors may have been crept in.

- 33 -

ANALYSIS & INTERPRETATION 1. AWARENESS OF BRANDS:

BRANDS MALE FEMALE

PEPSI 18 12

THUMS UP 22 15

COKE 7 3

MIRINDA 4 2

MAAZA 5 5

7 UP 2 2

SPRITE 2 1

TOTAL 60 40

0 5 10 15 20 25

PEPSI

COKE

MAAZA

SPRITE

FEMALEMALE

NO. OF RESPONDENTS

SOFT DRINKS

AWARENESS OF BRANDS

- 34 -

A high percentage of all brand awareness has been noticed and few

consumers were unaware of less popular brands.

2. MOST CONSUMED BRAND

BRANDS MALE FEMALE

PEPSI 16 7

THUMS UP 26 11

COKE 7 6

MIRINDA 1 2

MAAZA 2 7

7 UP - -

SPRITE 3 2

0

5

10

15

20

25

30

PEPSI COKE MAAZA SPRITE

MALEFEMALE

NO. OF RESPONDENT

BRANDS

POSITION OF DIFFERENT BRANDS

- 35 -

THUMS UP has been the favorite brand both among the

consumers of either sex, followed by PEPSI.

3. FACTORS INFLUENCING PURCHASE DECISION:

Attributes MALE FEMALE

AVAILABILITY 5 4

PRICE 3 3

TASTE 39 27

ADVERTISEMENT 3 3

FLAVOUR 9 4

8% 5%

67%

5%15% AVALIABILITY

PRICETASTEADVERTISEMENTFLAVOUR

The attributes accorded the highest priority are taste with 67% and

flavor & availability followed recording 15% & 8% respectively.

PURCHASE INFLUENCING FACTORS

- 36 -

4. BRAND PREFERENCES:

Ratings MALE FEMALE

EXCLEMENT 15 14

VERY GOOD 17 17

GOOD 28 9

25%

28%

47% EXCELLENTVERY GOODGOOD

Most consumers have rated their preferred brand good but not very

good (or) excellent.

RATING OF PREFFERED BRAND

- 37 -

5. FREQUENCY OF CONSUMPTION:

Frequency of

Consumption

MALE FEMALE

DAILY 12 3

THRICE A WEEK 15 8

WEEKLY 12 13

OCCASIONALLY 14 13

SEASONALLY 6 4

22%

25%20%

23%

10% DAILYTHRICE A WEEKWEEKLYOCCASIONALLYSEASONALLY

Occasional consumption frequency has been found to be on a high

note. A transition has been identified in their frequency of

consumption from being consumed seasonally to being consumed

weekly.

FREQUENCY OF CONSUMING

- 38 -

6. BRAND SWITCHING:

Brand Switching MALE FEMALE

YES 34 24

NO 27 15

Reasons MALE FEMALE

Due to non-availability of regular

brand

10 8

Due to non-availability of chilled

drink

6 2

For tasting different flavor 15 11

Influenced by friends 3 3

Other reasons - -

- 39 -

0

5

10

15

20

25

30

35

MALE FEMALE

YESNO

Brand switching have been identified and the primary reason has

been the propensity to taste different flavors.

GENDER

NUMBER OF RESPONDENT

SHIFTING OF BRANDS

- 40 -

7. PACKING:

Packing MALE FEMALE

200 ml 27 16

300 ml 5 7

500ml 3 -

1 lt 3 2

1.5 lt 8 3

2 lt - 1

TINS 3 2

TETRA PACK - 1

FOUNTAIN GLASS 1 3

05

1015202530

200

ml

500

ml

1.5

lt

TIN

S

FOU

NTA

IN

MALEFEMALE

TYPE OF PACKAGE % OF RESPONDENT

- 41 -

200 ml is fast moving quantity, 300 ml is loosing popularity.

8. PRICE RATINGS:

Rating MALE FEMALE

HIGH 24 14

REASONABLE 35 25

LOW 1 1

0

10

20

30

40

HIGH LOWMALE

MALEFEMALE

Majority consumers have said the price as reasonable and

considerable chunk have rated price as being high which is of

concern.

RATINGS

NO. OF RESPONDENTS

- 42 -

9. EFFECTIVE MEDIUM FOR ADVERTISEMENT:

MEDIUM MALE FEMALE

NEWS PAPER 9 4

TELEVISION 43 32

MAGAZINE 1 -

HOARDINGS 1 2

POSTERS 2 2

GLOW SIGN

BOARDS

3 1

05

1015202530354045

NEWSPAPERS

MAGAZINE POSTERS MALEFEMALE

MEDIA TYPE

NUMBER OF RESPONDENT

- 43 -

TELEVISION has been rated the most effective medium with

NEWSPAPERS (print media) following up.

10. ADVERTISEMENT APPEAL :

AD APPEAL MALE FEMALE

MODEL/CELEBRITY IS

GOOD

12 7

SLOGAN IS GOOD 18 13

THEME IS GOOD 16 12

SPONSERED EVENT IS

GOOD

4 5

EXECUTION IS GOOD 9 4

- 44 -

20%

31%27%

7%

15%

MODEL/CELEBRITY IS GOODSLOGAN IS GOODTHEME IS GOODSPONSERED EVENT IS GOODEXECUTION IS GOOD

Good catchy slogan is the most likable Ad appeal, with theme of

concept next most appealing.

11. PHRASE INFLUENCE:

Phrase Influence MALE FEMALE

YES 53 36

NO 7 4

LIKING ASPECT IN AN AD

- 45 -

Brands MALE FEMALE

PEPSI 19 4

THUMS UP 10 6

COKE 7 8

MIRINDA 4 3

MAAZA 2 1

7 UP 1 -

SPRITE 10 4

0

10

20

30

40

50

60

MALE FEMALE YESNO

NO. OF RESPONDENTS

IMPRESSIVE SLOGANS

- 46 -

19

1074

2110

PEPSI THUMS UP COKE MIRINDA MAAZA 7 UP SPRITE

14

68

31 4

PEPSI THUMS UP COKE MIRINDA MAAZA 7 UP SPRITE

Present slogans are found to be catchy hence impressive. PEPSI

slogan is voted the most effective, THUMS UP & COKE followed

respectively.

MOST LIKED SLOGANS [Female Respondents]

MOST LIKED SLOGANS [Male Respondents]

- 47 -

SUGGESTIONS

Keeping in view the limitations and findings the following

suggestions are put forth.

Since taste is the most important criteria the drink can be

made palatable to Indian taste by bringing out more

effervescent version of price.

More knowledgeable and health conscious consumers didn’t

consider the drink a good value for money.

Compulsive buying has been found generating negative

feelings and is weaving away potentials that are not loyalists.

Diet conscious consumers should be provided low caloric

drinks at reasonable cost.

Rusting of crows has been noticed which led to broken edges.

Bottling plant are to be set hygiene standards ensuring the

brand image does not suffer any onslaught.

- 48 -

Instead of tall promises, on the spot gifts is preferred

considering Indian culturing.

Frequent buyers should be recorded and rewarded

accordingly.

There has been a demand for umbrellas from retailers, which

were not available from the company.

Pepsi clubs should be established in college canteen thus

promoting his brand also sponsoring of college fete at various

levels would establish the brand among youth, as the habits

tend to continue for life.

Ad films are displayed in film shows, as switching problem

doesn’t arise in theaters.

Inadequate product promotion in case of 7-up has been

noticed which could be a good potential.

- 49 -

CONCLUSIONS

• From the findings of the study it can be inferred that the

demand for soft drinks is occasional with the maximum sales

being in summer.

• 15-24 age group contributes a large percentage of sales and

hence younger generation is the focus of soft drink

consumption.

• Television is the most effective medium followed by

newspapers.

• Taste has been found to be the most important factor

influencing purchase decisions High brand awareness has

been noticed among consumers.

• Bakeries have grown to be the popular outlets for soft drink

consumption.

• The company’s catchy slogan is the most appealing in ad

films.

- 50 -

• Sales promotion programs of the company are popular

among consumers with gifts being the most preferred.

• The company’s brand has been rated low on fuzziness and

hence less suitable to south Indian palate accustomed to

spices.

• 300 ml pack is popular among consumers, 500 ml, 2 lt.

Disliked.

• Brand switching is prevalent among majority consumers.

• Consumers preferred film stars and cricketers endorsing their

preferred brand.

• Retailers were reluctant for exclusive outlets.

• Retailers rate behavior of company’s sales people very good.

• Retailers abstained from recommending any brand of soft

drink to customers.

- 51 -

APPENDAGES

QUESTIONNARIE

FOR CUSTOMERS/CONSUMERS

1. Which brands of soft drinks are you aware of?

Pepsi [ ] Thums Up [ ] Coke [ ] Mirinda [ ]

Maaza [ ] 7 UP [ ] Sprite [ ] All [ ]

2. Which brand of soft drink you have consumed the most?

Pepsi [ ] Thums Up [ ] Coke [ ] Mirinda [ ]

Maaza [ ] 7 UP [ ] Sprite [ ]

3. What attributes and factors influence your purchase of soft

drinks? (Order of Preference).

Availability [ ] Price [ ] Taste [ ]

Advertisement [ ] Flavor [ ]

4. How do you rate the preferred brand of soft drink?

Excellent [ ] Very Good [ ] Good [ ]

5. How often do you consume soft drinks?

Daily [ ] Thrice a week [ ] Weekly [ ]

Occasionally [ ] Seasonally [ ]

6. Do you shift from one brand to another brand?

Yes [ ] No [ ]

- 52 -

If Yes, state the reason:

a) Due to non-availability of your regular brand [ ]

b) Due to non-availability of chilled drink [ ]

c) For tasting different flavors [ ]

d) Influenced by friends [ ]

e) Other Reasons __________________________

7. Which is the package that you prefer most?

200ml [ ] 300ml [ ] 500ml [ ] 1 Litre [ ] 1.5 Litre [ ]

2 Litre [ ] Tins [ ] Tetra Pack [ ] Fountain Glass [ ]

8. How do you rate the present price of soft drinks?

High [ ] Reasonable [ ] Low [ ]

9. Rank the media in the order of effectiveness for advertising

of soft drinks

Newspapers [ ] Television [ ] Magazines [ ]

Hoardings [ ] Posters [ ] Glow Sign Boards [ ]

10. What appeals to you in the advertisement of the

preferred brand?

Model/Celebrity is good [ ] Slogan is good [ ]

Theme of concept is good [ ] Sponsored event is good [ ]

Execution (Photography/still) is good [ ]

- 53 -

11. Do you think the present slogans are impressive?

Yes [ ] No [ ]

If Yes, which of the following

PEPSI Yeh Dil Mange More Aahaa! [ ]

COKE Jo Chahe Ho Jaye Coca Cola Enjoy! [ ]

THUMS UP Taste the Thunder [ ]

MIRINDA Zor Ka Jhatka Dheere Se Lage [ ]

SPRITE Dikhavon pe na jao, apni akal lagao [ ]

MAAZA Taaza Mango, Maaza Mango [ ]

7 UP Cool, Light & Easy [ ]

NAME OF RESPONDENT: ________________________

GENDER: Male [ ] Female [ ]

OCCUPATION: ___________ EDUCATION: ___________

INCOME APPROX: ________________________________

ADDRESS: _______________________________________

_______________________________________

_______________________________________

Ph No: Off: _____________ Res: __________________

Please ‘tick’ your age

10 – 15 15 - 24 25 - 34 35 & above

- 54 -

BIBILOGRAPHY

1. Principles of Marketing

………….Philip Kotler & Gary Armstrong.

2. Marketing Management

………….V.S. Ramaswamy & S. Namakumari

3. Marketing Research

………….Tull Donald & Hawkins

4. Consumer Behavior

…………Schiffman Leon & Kanuk Leslie

5. Internet:

………..www.pepsico.com

………..www.pepsi.com

6. Newspaper:

………..The Economic Times