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A COMPARITIVE STUDY ON PREFERENCE
OF SOFT DRINKS IN YOUTH
REPORT
Submitted to: Submitted by:
DR. RAJKUMAR CHIRAG GUPTA
Roll no. 5382
MBA 5.4
MASTER OF BUSINESS ADMINISTRATION
INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH
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MDU,ROHTAK
2010-2011
DECLARATION
I Chirag Gupta, student of 5 year M.B.A 4th semester of Institute of Management
Studies and Research hereby declare that the project report titled Preference of soft drink
in youth is a code of critical & independent work carried out by me under supervision &
guidance ofDr. Raj Kumar. This has not been previously submitted for the award of any
other diploma, degree or other similar degree.
The feasibility suggestion has been duly incorporated in the consultation with the supervisor.
Signature of the Candidate
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EXECUTIVE SUMMARY
Soft Drinks were common preference among all the individuals, irrespective of their age
groups as it had great brand value and great advertisement.
Market Research is based on some underlying parameters like:
Changing consumption pattern
Advertisements
Taste
Status consciousness
Varying lifestyle
The study starts with determining the major players in the soft drinks, their overall
consumption pattern among the people and ends up with the conclusion as per the state of
mind of the average rational human being.
Consumer preferences are changing towards healthier food, and thus such a trend will carry
on for some time to come. In the soft drinks market of late, most recent new products
launched have been focused on the health benefits of the soft drinks, like pomegranate
juices, calcium-fortified bottled water and a series of reduced-sugar alternatives, with such
features not previously so readily available to or heavily promoted at the target audience.
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TABLE OF CONTENTS
SERIAL NO. TITLE PAGE NO.
1) INTRODUCTION
1.1) Industrial profile 01
1.2) Major players in soft drinks segment
04
1.3) Study of growth of soft drink market
09
2) RESEARCH METHODOLOGY
2.1) Purpose of the study
10
2.2) Objectives of the study 10
2.3) Scope of the study
10
2.4) Research Design 11
2.5) Sampling Technique used
12
2.6) Selection of Sample Size
12
2.7) Sources of Data collection
12
2.8) Statistical Tools Used 12
3) DATA ANALYSIS AND FINDINGS
13
4) LIMITATION OF THE STUDY
24
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5) CONCLUSION
25
6) ANNEXURE6.1) Questionnaire 26
7) BIBLIOGRAPHY
28
INTRODUCTION
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INDUSTRIAL PROFILE
The soft-drink industry comprises companies that manufacture nonalcoholic beverages and
carbonated mineral waters or concentrates and syrups for the manufacture of carbonated
beverages. Naturally occurring bubbling or sparkling mineral waters have been popular for
thousands of years: the ancient Greeks believed that such waters had medicinal properties
and bathed in them regularly; the Romans established resorts around mineral springs
throughout Europe. In the 1500s the village of Spa in Belgium became famous for its waters,
which by the early 1600s were sold, in bottles, as far away as London, Eng.
Development of the first man-made sparkling or carbonated water is credited to Joseph
Priestley, the British scientist who discovered oxygen. In 1772 he invented a method of
"pushing" carbon dioxide into water by dissolving it under pressure, thus creating fairly
long-lasting bubbles. The technique led to development of the soft-drink industry. By the
beginning of the 19th century, carbonated water was being made commercially in France
and North America; shortly thereafter, flavours (normally fruit concentrates) were added to
enliven the taste. In the 1820s, small carbonated bottling operations were established in
Canada, producing carbonated drinks in refillable bottles which were merchandised as
medicinal elixirs or tonics. Most soft drinks are still carbonated to give drinks a "tangy bite"
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and to stimulate the tongue. Furthermore, because scent is an important part of taste, the
flavours carried as vapours in the bubbles enhance taste.
The principle of "pushing" carbon dioxide is still used, but now the water is first purified in
a process known as "polishing." Cooled carbon dioxide is then injected at pressures of 275-
550 kilopascals. Some of the early drinks bottled in Canada were called Birch Beer, Ginger
Beer, Sarsaparilla, Sour Lemon, None-Such Soda Water and Cream Soda. The first
carbonated beverage or "pop" bottles were sealed with corks held tightly in place with a wire
binding. Because they had to be stored neck down so that the cork would not dry and allow
the carbonation to leak away, they were manufactured with rounded bottoms. By the mid-
1800s, soft drinks sold in Canada were packaged in 8-ounce (227.2 ml) round-bottom bottles
for about 25 cents a dozen, except ginger beer, which was sold in draught form from wooden
kegs. Wired cork closures were used until about 1884 with Codd's Patented Globe Stoppers
(25 types in all). Such closures were replaced by the Hutcheson Spring Stopper. The crown
cap was introduced around 1905 and improved versions are still widely used, although they
are gradually being replaced, especially on larger containers, with reclosable screw caps.
Other packaging innovations since the mid-1960s include canned carbonated beverages,
nonreturnable glass bottles and containers made from rigid plastics. However, an effort isbeing made, often through provincial legislation, to increase the use of returnable glass
containers.
In the industry's early years the number of carbonated-beverage plants increased steadily,
most serving small regional markets. In 1929 the industry was made up of 345 production
plants and the value of shipments reached $12.3 million. By 1960 the number of plants had
increased to 502 and the value of sales to $172.7 million. Subsequently, consolidation
began, prompted by improved production, packaging and distribution facilities. By 1973,
337 plants were in production and the value of shipments was $484 million. In 1985, with
sales of about $1.8 billion, the industry had 187 plants in production: Newfoundland had 3;
PEI, 1; Nova Scotia, 7; New Brunswick, 8; Qubec, 66; Ontario, 58; Manitoba, 7;
Saskatchewan, 10; Alberta, 13; and BC, 14. Production volume has also increased
dramatically: in 1939, soft-drink bottlers produced about 162 million litres of carbonated
beverages; by 1967, production passed 758 million litres; in 1986, shipments were estimated
at over 2.1 billion litres; and in 1998 that figure rose to 3.5 billion litres.
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The industry is regulated by both federal and provincial agencies, 3 of the most important
being CONSUMER AND CORPORATE AFFAIRS (responsible for the Consumer
Packaging and Labelling Act), HEALTH CANADA(which administers the Food and Drugs
Act) and Environment Canada (which focuses on environmental matters). The industry isrepresented by the Canadian Soft Drink Association in Toronto and by several provincial
associations.
The introduction of diet carbonated beverages has changed the industry's profile. Several
years ago, in response to increasing consumer diet consciousness, the industry introduced
the first successful sugar-free diet drinks using the artificial sweetener cyclamate. But
questions were raised about the safety of this additive and, based on existing scientific data,
Health Canada banned its use in Canadian commercial FOODS AND BEVERAGES. This
decision, estimated to have cost the industry more than $15 million, was a setback to diet-
drink development. The industry turned to saccharin, but this too was eventually banned.
Now, a new sugar-free additive, aspartame, has been approved for use in diet soft drinks,
and the cyclamate/saccharin situation is not expected to recur because aspartame consists of
amino acids, which occur naturally. Aspartame-sweetened diet drinks have had a dramatic
effect on the Canadian carbonated-beverage industry. Just before the saccharin ban in 1977,
diet drinks accounted for about 10% of the soft-drink market; following the ban the diet
share dropped to about 2%, consisting of beverages partially sweetened with small amounts
of sugar. In 1982, the first full year that aspartame was used in Canada, diet drinks increased
by 15.2% of total soft-drink sales, while the total soft-drink industry grew 8%. In 1987 total
soft-drink sales increased 5.3% over 1986, while diet soft-drink sales increased by 10.7%.
This single development has encouraged strong growth in the industry.
2
http://www.thecanadianencyclopedia.com/index.cfm?PgNm=TCE&Params=A1ARTA0001878http://www.thecanadianencyclopedia.com/index.cfm?PgNm=TCE&Params=A1ARTA0005622http://www.thecanadianencyclopedia.com/index.cfm?PgNm=TCE&Params=A1ARTA0005622http://www.thecanadianencyclopedia.com/index.cfm?PgNm=TCE&Params=A1ARTA0002883http://www.thecanadianencyclopedia.com/index.cfm?PgNm=TCE&Params=A1ARTA0001878http://www.thecanadianencyclopedia.com/index.cfm?PgNm=TCE&Params=A1ARTA0005622http://www.thecanadianencyclopedia.com/index.cfm?PgNm=TCE&Params=A1ARTA0002883 -
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MAJOR PLAYERS IN SOFT DRINKS SEGMENT
COCA COLA
thanda matlab coca cola!!!
Coca cola has truly remarkable heritage. From a humble beginning in 1886 it has now
become the flagship brand of largest manufacturer, distributor of non alcoholic beverages in
the world.
In India, coca cola was the leading soft drink till 1977 when govt. policies necessitated its
departure. Coca cola has made its return to the country in 1993.and made significant
investment to ensure that the beverage is available to more and more people in remote as
well as inaccessible parts of the world.
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Coca cola returned to India in 1993 and over the past ten years has captured the imagination
of the nation, building strong association with cricket, the thriving cinema industry, music
etc. coca cola has been very strongly associated with cricket, sponsoring the world cup in
1996.In 2002, coca cola launched the campaign,Thanda Matlab coca cola. in 2003,coke was
available for just rs,5 crores in the country.
FANTA
GHOONTH BHAR SHARARAT KAR LEY!!!
Fanta entered the Indian market in year 1996 under the coca cola brand .over the years,
Fanta has occupied a strong market place and is identified as the fun catalyst. Fanta stands
for its vibrant color, tempting taste and tingling bubbles that not just uplifts feelings but also
helps free spirit thus encouraging one to indulge in the moment.
LIMCA
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LIME AND LEMONI!!!
Drink that can cast a tangy refreshing spell on anyone, anywhere. Born in 1971, Limca has
been the original thirst choice, of millions of consumers for over three decades.
The brand has been displaying healthy volume growing year on year and limca continues to
be leading flavoring soft drinks in the country.
Dive into the zingy refreshment of limca and walk away a new person.
THUMS UP
TASTE THE THUNDER!!!
Strong cola taste, exciting personality.
Thums up is a leading carbonated soft drink and most trusted brand in India. Originally
introduced in 1977, thums up was acquired by the coca cola company in 1993.
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Thums up, is, known for strong, fizzy taste and its confident, mature and uniquely masculine
attitude. This brand clearly seeks to separate the man from the boys.
SPRITE
SPIRITE BHUJAYE PYAAS BAKI SAB BAKWAAS!!!
World wide sprite ranked as no.4 soft drink and is sold in more than 190 countries In India,
sprite was launched in year 1999 and today it has grown to be one of the fastest growing soft
drinks, leading clear lime category.
Today sprite is perceived as a youth icon. With strong appeal to youth sprite has stood for a
straight forward and honest attitude. Its clear crisp hingtaste encourages todays youth to
trust their instincts, influence them to be true who they are and to obey their thirst.
MAAZA
YAARI DOSTI TAAZA MAAZA!!!
Maaza was launched in 1976. In 1993, maaza was acquired by coca cola India. Maaza
currently dominates the fruit drink category. Over the years, maaza has become synonymous
with mango.
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Taaza Mango, Maaza mango, Botal mei aam, maaza hai naam.consumers regard maaza as
wholesome, natural, fun loving drink real experience of fruit.
The campaign builds on the existing equity of the brand and delivers a relevant emotionalbenefit to the moms rightly captured in tagline, yaari dosti, and taaza maaza.
PEPSI
YEH DIL MAANGE MORE!!!
Pepsi cola is a carbonated beverage that is produced and manufactured by Pepsi co. It is sold
in stores, restaurants and from vending machines. The drink was first made in the 1890s inNorth Carolina.
The brand was trademarked on June 16, 1903.There have been many Pepsi variants
produced over the years.
Diet Pepsi
Crystal Pepsi
Pepsi twist
Pepsi max
Pepsi samba
Pepsi blue
Pepsi gold
Pepsi holiday spice
Pepsi jazz
Pepsi x(available in Finland & brazil)
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Pepsi next(available in Japan & south Korea)
STUDY OF GROWTH OF SOFT DRINK MARKET
SOFT DRINKS
Carbonated drinks are dominated by artificial flavors based on cola, orange and lime with
Pepsi and coca-cola dominating the market. The entire part of the drink is based on its
artificial flavors and sweetening agents as no natural juice is used.
MARKET
Cola products account for nearly 61-62% of the total soft drinks market.
Two global majors Pepsi and coke dominate the soft drink market.
NCAER survey says 91% of soft drink in the country is in the lower, lower middle
and upper middle class people.
The market is worth around Rs.5000 crores with growth rate of around 10-15%.
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The annual per capita consumption in India is only about 6 bottles vis- a- Vis 340
bottles in the U.S.
The production as soft drinks has increased from 5670 million bottles in 1998-99 to
6230 million bottles in 1999-2000 industry source.
Growth market this year is expected to be 10-15% in value terms and 20-22% in
volume terms.
However, the market for carbonated drinks is stagnating and not growing as expected.
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RESEARCH
METHODOLOGY
PURPOSE OF THE STUDY
The main aim of this research study is to analyze the preference of youth on consumption
patterns and preference of Soft Drinks.
OBJECTIVE OF THE STUDY
To study the preferences of the youth for soft drinks.
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To find out the factor(s) that influences the consumers consumption of soft drinks.
To test the know-how of the consumers regarding the various existing brands of soft
drinks.
To know the size of the soft drink purchase for personal and household purpose.
To know the frequency of consumption of soft drink.
SCOPE OF THE STUDY
This study is confined MDU campus Rohtak.
Seasonal drinks are not considered in the study.
We are considering only canned and bottled drinks.
We are not considering health & alcoholic drinks.
RESEARCH DESIGN
A research design is a framework or blueprint for conducting the marketing research
project. It specifies the details of the procedures necessary for obtaining the information
needed to structure and/or solve marketing research problem.
On the basis of fundamental objectives of the research we can classify research design into
two general types:
1) EXPLORATORY RESEARCH
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2) CONCLUSIVE RESEARCH
Exploratory research is one type of research design, which has its primaryobjective the provision of insights into, and comprehension of, the problem situation
confronting the researcher.
Conclusive research is designed to assist the decision maker in determining
evaluating and selecting the best course of action to take in a given situation.
Conclusive research can be further divided into two types:-
Descriptive
Experimental
The research design used in this project is a DESCRIPTIVE DESIGN.
Descriptive study as the name implies is designed to describe something-for example the
characteristics of users of a given product, the degree to which the product use varies with
income, age, etc.
SAMPLING TECHNIQUE USED:This research has used convenience sampling technique.
1)Convenience sampling technique: Convenience sampling is used in exploratory
research where the researcher is interested in getting an inexpensive approximation of the
truth. As the name implies, the sample is selected because they are convenient.
SELECTION OF SAMPLE SIZE:
For the study, a sample size of 60 has been taken into consideration.
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SOURCES OF DATA COLLECTION:
Research will be based on two sources:
1. Primary data
2. Secondary data
1) PRIMARY DATA:
Questionnaire: Primary data was collected by preparing questionnaire and the people
were randomly being requested to fill them.
2) SECONDARY DATA:
Secondary data will consist of different literatures like books which are published, articles,
internet and websites.
In order to reach relevant conclusion, research work needed to be designed in a proper way.
STATISTICAL TOOLS USED
The main statistical tools used for the collection and analyses of data in this project are:
Questionnaire
Bar Diagrams
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DATA ANALYSIS &
FINDINGS
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Statistics
Do you like soft
drink?
Where do you
mosty consume
soft drink?
Frequency of
consumption of
soft drink in a
week?
On what
occasions, do
you often
consume the soft
drink?
What induce you
to buy soft drink?
N Valid 60 60 60 60 60
Missing 0 0 0 0 0
Mean .9333 2.0333 2.5500 2.0167 3.7667
Median 1.0000 2.0000 2.0000 2.0000 4.0000
Mode 1.00 2.00 2.00 2.00 4.00
Variance .063 .473 1.167 .559 .826
Statistics
Which soft drink
do you like
more?
Do
advertisement
influence your
purchase?
Do you agree
that packaging
influence your
purchase
decision?
Please tick the
size of soft drink
you purchase for
personal
consumption?
Which soft drink
is served to the
guest in your
home?
N Valid 60 60 60 60 60
Missing 0 0 0 0 0
Mean 3.5000 2.6833 2.4167 2.8333 3.9833
Median 4.0000 3.0000 2.0000 3.0000 4.0000
Mode 1.00 2.00a 2.00 3.00 1.00
Variance 5.203 .966 .891 .921 4.423
a. Multiple modes exist. The smallest value is shown
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Statistics
Who decide the
selection of soft
drink for
household?
Do you read
instruction written
on the packaging
of soft drink?
N Valid 60 60
Missing 0 0
Mean 2.8167 1.6167
Median 3.0000 2.0000
Mode 3.00 2.00
Variance .356 .240
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Do you like soft drink?
Frequency Percent Valid Percent
Cumulative
Percent
Valid No 4 6.7 6.7 6.7
Yes 56 93.3 93.3 100.0
Total 60 100.0 100.0
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Where do you mosty consume soft drink?
Frequency Percent Valid Percent
Cumulative
Percent
Valid Party 13 21.7 21.7 21.7
Cafe 32 53.3 53.3 75.0
Home 15 25.0 25.0 100.0
Total 60 100.0 100.0
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Frequency of consumption of soft drink in a week?
Frequency Percent Valid Percent
Cumulative
Percent
Valid Daily 10 16.7 16.7 16.7
2-4 times 24 40.0 40.0 56.7
More than 4 times 9 15.0 15.0 71.7
Once in a week 17 28.3 28.3 100.0
Total 60 100.0 100.0
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On what occasions, do you often consume the soft drink?
Frequency Percent Valid Percent
Cumulative
Percent
Valid Feeling Thirsyt 14 23.3 23.3 23.3
Without any reason 33 55.0 55.0 78.3
Parties/celebretions 11 18.3 18.3 96.7
other 2 3.3 3.3 100.0
Total 60 100.0 100.0
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What induce you to buy soft drink?
Frequency Percent Valid Percent
Cumulative
Percent
Valid Price with quality 4 6.7 6.7 6.7
Health drink 3 5.0 5.0 11.7
Taste 49 81.7 81.7 93.3
Variety 4 6.7 6.7 100.0
Total 60 100.0 100.0
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Which soft drink do you like more?
Frequency Percent Valid Percent
Cumulative
Percent
Valid Dew 21 35.0 35.0 35.0
Sprite 7 11.7 11.7 46.7
Cocacola 1 1.7 1.7 48.3
Pepsi 6 10.0 10.0 58.3
Limca 7 11.7 11.7 70.0
Maaza 13 21.7 21.7 91.7
Other 5 8.3 8.3 100.0
Total 60 100.0 100.0
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Does advertisement influence your purchase?
Frequency Percent Valid Percent
Cumulative
Percent
Valid Strongly agree 6 10.0 10.0 10.0
Agree 21 35.0 35.0 45.0
Neutral 21 35.0 35.0 80.0
Disagree 10 16.7 16.7 96.7
Strongly Disagree 2 3.3 3.3 100.0
Total 60 100.0 100.0
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Do you agree that packaging influence your purchase decision?
Frequency Percent Valid PercentCumulative
Percent
Valid Strongly agree 7 11.7 11.7 11.7
Agree 30 50.0 50.0 61.7
Neutral 17 28.3 28.3 90.0
Disagree 3 5.0 5.0 95.0
Strongly Disagree 3 5.0 5.0 100.0
Total 60 100.0 100.0
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Please tick the size of soft drink you purchase for personal consumption?
Frequency Percent Valid Percent
Cumulative
Percent
Valid 2ooml 6 10.0 10.0 10.0
250ml 14 23.3 23.3 33.3
300ml 25 41.7 41.7 75.0
500ml 14 23.3 23.3 98.3
other 1 1.7 1.7 100.0
Total 60 100.0 100.0
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Which soft drink is served to the guest in your home?
Frequency Percent Valid Percent
Cumulative
Percent
Valid Dew 16 26.7 26.7 26.7
Sprite 1 1.7 1.7 28.3
Cocacola 3 5.0 5.0 33.3
Pepsi 11 18.3 18.3 51.7
Limca 12 20.0 20.0 71.7
Maaza 11 18.3 18.3 90.0
other 6 10.0 10.0 100.0
Total 60 100.0 100.0
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Who decide the selection of soft drink for household?
Frequency Percent Valid Percent
Cumulative
Percent
Valid Father 2 3.3 3.3 3.3
Mother 11 18.3 18.3 21.7
Himself/herself 43 71.7 71.7 93.3
Other 4 6.7 6.7 100.0
Total 60 100.0 100.0
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Do you read instruction written on the packaging of soft drink?
Frequency Percent Valid Percent
Cumulative
Percent
Valid Yes 23 38.3 38.3 38.3
No 37 61.7 61.7 100.0
Total 60 100.0 100.0
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LIMITATIONS OFTHE STUDY
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LIMITATION OF THE STUDY
The study was confined to University Campus MDU Rohtak only.
Chances of some biasness could not be eliminated.
Youth are assumed to be between the age 15 to 25
Time was the major constrain. Only limited sample size (60) was
possible for such a vast research on such a period of time .i.e. one
month
Interaction with the respondents was also limited due to their busy
work.
Due to the changing life style and preferences, it was not
necessary that they will consume same soft drink every time.
There was a chance that respondent will make assumptions while
filling the questionnaire.
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CONCLUSION
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CONCLUSION
Following are the concluding points taken into consideration after the conduct
of the research study:
An important finding that emerged out of the survey was that 91%of
youth like to have soft drinks while 9% not like.
Through the research it was conveyed that weekly consumption of soft
drinks is more than daily consumption.
Most of the respondents took soft drink without any reason.
Remaining majority of the respondents consume soft drinks at the time
of parties & celebrations.
Most of the respondents consume soft drinks because of its taste.
Most of the respondents were of the neutral view that advertisements
affect their purchases.
Most of the respondent likes Dew.
Most of them consume 300ml pack for personal usage.
Packaging doesnt influence the purchase of most of the respondents.
Most of them dont read instruction written on the package of soft drink.
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ANNEXURE
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QUESTIONNAIRE
Respected Sir/Madam
A Research Project is being pursued in IMSARon Preference of soft drink in youth. Kindly extend
your cooperation & enable us doing the project successfully.This information is used for academic purpose.
PERSONAL DETAILS
Name - .
Age - .
Gender - Male Female
Qualification - Graduate Under Graduate Post Graduate
Other (Specify)
1) Do you like soft drinks?
Yes No
2) Where do you mostly consume soft drink?
Party Caf Home
3) Frequency of consumption of soft drink in a week?
Daily 2-4times more than 4 times once in a week
4) On what occasions, do you often consume the Soft Drinks?
Feeling Thirsty Without any reason (just like that)
Parties / Celebrations Others, please specify..
5) What induces you to buy Soft Drinks?
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Price with quantity Health Drink Status symbol
Taste Variety Advertisement
6) Which soft drink do you like more?Dew Sprite Cocacola Pepsi
Limca Maaza Other (specify)
7) Do advertisements influence your purchases?
Strongly Agree Agree Neutral Disagree
Strongly Disagree
8) Do you agree that packaging influence consumer purchase decision?
Strongly agree Agree Neutral
Disagree
Strongly disagree
9) Please tick the size of soft drink you purchase for personal consumption?
200 ml 250ml 300ml 500ml
other (specify)
10) Which soft drink is served to the guest in your home?
Dew Sprite Cocacola Pepsi
Limca Maaza Other (specify)..
11) Who decide the selection of soft drink for household?
Father Mother Himself/Herself Other(Specify).
12) Do you read instruction written on the packaging of soft drink?
Yes No
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BIBLIOGRAPHY
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BIBLIOGRAPHY
http://en.wikipedia.org/wiki/Beverage
www.foodindustryindia.com
http://fnbnews.com/article/detarchive.asp?articleid=25105§ionid=3
http://fnbnews.com/article/detarchive.asp?articleid=24983§ionid=3
http://fnbnews.com/article/detarchive.asp?articleid=24965§ionid=3
http://fnbnews.com/article/detarchive.asp?articleid=24849§ionid=3
http://fnbnews.com/article/detarchive.asp?articleid=25039§ionid=3
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