PEPSI MINIPROJECT8

INTRODUCTION

Satisfaction is an important element in the evaluation stage.

Satisfaction refers to the buyer's state of being adequately rewarded in a

buying situation for the sacrifice he has made. Once the customers purchase

and use the product they may then either be satisfy or dissatisfied. Today's

market is buyer oriented where the customer is considered the king. He has

full power to choose the desired product according to his needs and wants.

His preference is most important. Because of the huge competition, every

manufacturer wants to survive in the market and earn profit. This is possible

only when the products manufactured are according to the tastes and

preferences of the customers and meet their expectations. Different

customers have different perceptions because no two customers have similar

wants and needs. Product with good features may attract a good number of

customers because good feature suits the requirement of the customers. They

make decisions based on their past experience and future contingencies.

Hence the company needs to analyze the customer perception, which helps

them in determining the various factors influencing consumer’s choice in

buying.

The Project “CUSTOMER SATISFACTION TOWARDS PEPSI”

deals with consumers preferences for Cola Drinks, to study the Market

Potential of PEPSI. The company PEPSI has interests in various sectors and

they provide consistent quality products to meet costumer’s requirement

worldwide. This report clearly mentions objective of the study and the

research methodology utilized, both primary data and secondary data. The

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data collection method used is structured nondisguised questionnaire in

which the types of questions used are open ended, multiple choice and close

ended. The report contains a detailed view of the PREFERENCES of

consumers towards PEPSI.

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COMPANY OVERVIEW

Caleb Bradham a New Bern N.C druggist who formulated Pepsi

Cola founded Pepsi Cola Beverage business at turn of the century. Pepsi

Cola Company now produces and markets nearly 200 refreshment beverages

to retail, restaurants and food service customers in more then 190 countries

and territories around the world and generates revenue of over 18 billion

dollars PepsiCo World Headquarters is located in Purchase, New York.

Pepsi Co. is the world leader in the food chain business. It consists of many

companies amongst which the prominent ones are Pepsi Cola, Frito-lay,

Pepsi food international, Pizza-hut, KFC and Taco bell. The group is

presently into three most profitable businesses namely, Beverages Snacks

foods and Restaurants. The beverages segment primarily market it Pepsi

diet, Pepsi Mountain Dew and other brands worldwide and 7UP outside the

U.S.market. They are positioned in close competition with Coca Cola inc. of

USA. The Snacks food divisions manufacture and distribute and markets

others snacks worldwide. The restaurant segment primarily consists of the

operations of the worldwide Pizza-Hut, Taco bell and KFC chains PFS,

PepsiCo’s restaurant distribution operation, supplies to Company owned and

Franchise restaurants in the U.S.

“Pepsi Co is going blue”. This was the new color adopted by the

company to strengthen its brand globally. Also the company is changed

colors from Generation X to GENERATION NEXT.

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Although Pepsi holdings over the years have become diverse in such

fields as the Snacks industry and Restaurants industry, this portfolio will

discuss its core business and its highly successful business of Beverages.

The soft drink industry customer base is probably the widest and deepest

base in a world that is flooded with some many categories. According to

Beverage Digest the customer base for soft drinks is a whopping 95% of

regular users in the United States. This represents a large field of potential

customers for Pepsi Cola.Pepsi prefers to segment itself as the beverage

choice of the “New Generation”, “Generation Next”, or just as the

“Pepsi Generation”. These terms adopted in Pepsi’s advertising campaigns

are referring to the markets that marketers refer to as Generation X. The

Generation X consumer is profiled to be between the ages of 18 to 29.

They have high expectations in life and are very mobile and active.

They adopt a lifestyle of living for today and not worrying about long-term

goals. Those Pepsi’s main emphasis on this segment they also have a focus

on the 12 to 18 year old market. Pepsi believes if they can get this market to

adopt their product then they could establish a loyal customer for life. Pepsi

Cola throughout its 100 years of existence has developed much strength.

One of the strengths that has developed Pepsi into such a large corporation is

a strong franchise system. The strong franchise system was the backbone of

success along with a great entrepreneur spirit. Pepsi’s franchise system and

distributors is credited to bring Pepsi from a 7,968 gallons of soda sold in

1903 to nearly 5 billion gallons in the year of 1997.

Pepsi also has the luxury to spend 225 million dollars in advertising a

year. This enormous ad budget allows Pepsi to reinforce their products with

reminder advertising and promotions. This large budget also allows Pepsi to

introduce new products and very quickly make the consumer become aware

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of their new products. Pepsi also has had the good fortune of making very

wise investments. Some of the best investments have been in their acquiring

several large fast food restaurants. They have also made wise investments in

snack food companies like Frito Lay, which at present time is the largest

snack company in the world. Probably high on the list of strengths is Pepsi’s

beverage line up. Pepsi has four soft drinks in the top ten beverages in the

world. These brands are Pepsi, Mountain Dew, Diet Pepsi, and Caffeine

Free Diet Pepsi. Some other strong brands are All Sport, Slice, Tropicana,

Starbucks, Aquafina and a license agreement with Ocean Spray Juices.

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OBJECTIVE OF THE STUDY

To study the consumers preferences for PEPSI.

To know the percentage of males and females that are aware about

PEPSI

To know whether the people like PEPSI’S advertisement.

To know the reason to buy PEPSI drinks.

To know the level of awareness about PEPSI

To study the consumer attitude towards PEPSI.

To know influencing factors to buy PEPSI

To know the satisfaction level of consumers.

To gather innovative ideas to improve the product quality.

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SCOPE OF THE STUDY

The scope of this study was to know the consumers attitude about the

various factors such as company image, quality etc and also to know their

brand awareness. Further it also helps to know the effective media to

advertise the product. The study can also be used to know customer

satisfaction level about price, discount basis; quality etc thus the main scope

of the study was to identify the Consumer satisfaction and consumer

expectations about the company and its products.

LIMITATIONS OF THE STUDY

Though the research has been properly planned and well executed,

there are certain limitations, which are inherent in nature and are out of the

researcher’s control. The effectiveness of the project is felt only when the

results are read along with the limitations and constraints faced during the

course of the study. The following are the limitations.

The responses from the respondents could be casual in nature. This

may be due to lack of interest or time on their part.

The correctness of information provided by the respondents in the

personal data could not be established.

Some of the information provided by the respondents might not be

correct.

Getting timely responses from the respondents was a difficult task.

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RESEARCH METHODOLOGY OF STUDY

SAMPLE SIZE:

The data has been collected from 60 people.

TARGET SAMPLE

Target sample has been picked in particular reference to the

consumer’s demographic variables.

SAMPLING METHOD:

The sampling method is the procedure or way in which the sampling

has been done. As no project or research can be done taking in to

consideration the whole of the population or universe, the concept of

sampling is used, as per the concept of sampling. Only some sample is taken

from the universe in order to find out the result.

Sampling technique used: convenience sampling.

SOURCES OF DATA:

PRIMARY DATA:

The data for study has been collected by well structured, yet easy to

understand questionnaire forms specially designed to cover aspects

regarding the background of the reader, his/her opinion on

PEPSI and finally about PEPSICO Company, visited wide section of people

for the survey and interviewed them to collect all the necessary information

which was filed and analyzed at a later time of the study.

SECONDARY DATA:

Data collected from journals, internal records of the company,

published data and Internet websites.

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FORMULATION OF QUESTIONNAIRE:

Structured questionnaire were formulated for the survey, with the help

of which data’s and other information’s were collected from consumers. A

sample copy of questionnaire has been given in the annexure of the reports

towards the end.

AREA AND PERIOD OF STUDY:

The project was carried out in Chennai City covering Government

sector, Private sector, students, professionals and businessmen as part of the

Survey and the study. The data collected has been tabulated and analyzed

with the help of simple statistical techniques and conclusion has been drawn.

Sufficient explanations are given wherever necessary for easy

understanding.

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REVIEW OF LITERATURE

Consumer

A consumer is an individual who purchase or has the capacity to purchase

goods and services offered for sale by marketing institutions in order to

satisfy personal or household needs, wants or desires.

According to a statement made by Mahatma Gandhi, ‘consumer refers to the

following,

“A consumer is the most important visitor on our premises. He is not

dependent on us. We are dependent on him. He is not an outsider to our

business. He is part of it. We are not doing him a favour by serving him. He

is doing us a favour by giving us an opportunity to do so”.

So consumer is like the blood of our business and also a satisfied customer is

a word of mouth advertisement of a product / services.

Attitude

A mental position consisting of a feeling, emotion, or opinion evolved in

response to an external situation. An attitude can be momentary or can

develop into a habitual position that has a long-term influence on an

individual's behavior. Attempts can be made to modify attitudes that

have a negative effect in the workplace, for example, through education and

training. The employee, the position of the body or way of carrying oneself.

Attitudes are evaluative statement favorable or unfavorable related to

person, object or event. They reflect that how one feel about something. For

example if someone says that I like my job. This statement expresses his

attitude towards his job. Each and every person hasdifferent attitude at

different conditions.

There are three components of attitude.

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1: Cognitive component:

It refers that's part of attitude which is related in general know how of a

person, for example, he says smoking is injurious to health. Such type of

idea of a person is called cognitive component of attitude.

2: Effective component:

This part of attitude is related to the statement which affects another person.

For example, in an organization a personal report is given to the general

manager. In report he point out that the sale staff is not performing their due

responsibilities. The general manager forwards a written

notice to the marketing manager to negotiate with the sale staff.

3: Behavioural Component:

The behavioural component refers to that part of attitude which reflects the

intension of a person in short run or in long run.

For example, before the production and launching process the product.

Report is prepared by the production department which consists of their

intention in near future and long run and this report is handed over to top

management for the decision.

If you have grown up in a loving and supporting family, your attitude to life

in general will be positive and you will meet all people with respect, the

support of your family also will make you overcome all difficulties of life

with ease. Positive thinking (attitude) is a strong motivator. If the opposite

happened, may turn out to be a mean and jealous person, holding most

people in low regard, not respecting laws of society or government, your

negative attitude will draw negative happenings to you. A very sad state,

indeed if your family failed, you can still turn to religion to discover why

nobody likes you – because of your attitude. All religions offer some

answer, and the rest you can figure out yourself! Leading a happy life has to

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do with attitude: where do I really stand – and where has my family put me

to stand? Where and what is the place I should take and how much space is

due to me – depending on my merits? Attitude is a reflection of your mind

as the way it attends to a problem. This is a relative term, because it changes

as per situation. Whether it is positive or negative depends upon its

suitability to the attitude of the receiver, and the ultimate result of the

decisions taken. All relative! It is influenced by your formative strengths &

weaknesses, grooming back-ground, maturity, and thorough knowledge of

the event.

CONSUMER SATISFACTION

Every human being is a consumer of different produces. If there is no

consumer, there is no business. Therefore, consumer satisfaction is very

important to every business person.According to Philip Kotler consumer

satisfaction is defined on,

“personal feeling of pleasure resulting from comparing a product’s pursued

performance in relation to his /her expectations”.

Consumer attitude measurements are taken on either potential buries or

existing client’s buries in order to identify their characteristics. Why should

the competent market engineer conduct consumer research? Consumer

surveys can provide the researcher with a wealth of information, valuable of

the marketing function. Detailed information regarding the customer in a

market will provide the basic platform for all marketing decisions.

Marketing decision maker needs descriptive information about the

total potential unit and dollar sales in each segment. Perhaps the most

important one is that a seller needs to be aware of the relevant objective and

need of consumer and how their objectives might best be served by the

products.

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Importance of consumer satisfaction

The needs to satisfy customer for success in any commercial enterprise is

very obvious. The income of all commercial enterprise is derived from the

payments received for the products and services supplied to its customers. If

there is no customer there is no income and there is no business. Then the

core activity of any company is to attract and retain customers. It is

therefore no surprise that Peter Drucker the renowned management Guru,

has said “to satisfy the customers is the mission and purpose of every

business”. Satisfaction of customer is essential for retention of customer’s

and for continuous sales of the products and services of the company to

customers. This establishes the needs for and the importance of customer

satisfaction. The satisfaction of consumers is different from one to

another. Became, each consumer has the different behaviour in their life. So,

the marketer satisfies the consumer, he must very well know the behaviour

of consumer.

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Ten Basic Rules For Customer Satisfaction

1. Involve top management.

2. Know the customers.

3. Let the customers define what attributes are important.

4. Know the customers' requirements, expectations, and wants.

5. Know the relative importance of customer decision criteria.

6. Gather and trust data

7. Benchmark the data against competitors, and identify competitive

strengths and weaknesses.

8. Develop cross-functional action plans that enhance strengths and correct

weaknesses.

9. Measure performance continually and spread the data throughout the

organization.

10. Be committed to getting better and better and better.

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DATA ANALAYSIS AND INTERPRETATION

Table – 1

AGE OF THE RESPONDENTS:

Options No. of Respondents Percentage (%)

Less than & equal to 20 31 52

21-30 14 23

31-40 14 23

41-50 1 2

51 and above - -

TOTAL 60 100.00

INFERENCE

It is clear from the above table that 52% of the respondents

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belong to the age group of less than or equal to 20 , percentage of the

respondents between the age group of 21-30 and 31-40 are 23 % each and

2% of the respondents belong to the age group of 41-50.

Table – 2

GENDER :


Male 49 82

Female 11 18

Total 60 100.00

INFERENCE

It is clear from the above table that 82% of the respondents are male and

18% of the respondents are female.

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Table – 3

OCCUPATION:


students 47 78

service 4 7

business 3 5Engineer 5 8

others 1 2

TOTAL 60 100.00

INFERENCE

It is clear from the above table that 78% of the respondents are

students.service,buiness,engineer and others form the remaining 22%.

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Table – 4

MARTIAL STATUS :


married 8 13

single 52 87

Total 60 100.00

INFERENCE

It is clear from the above table that 87% of the respondents are single and

13% of the respondents are married.

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Table – 5

INCOME :


Up to 5000 19 31

5000-10000 23 38

10000-20000 10 1720000-50000 4 7

50000 and above 4 7

TOTAL 60 100.00

INFERENCE

It is clear from the above table that 38% of the respondents have an

income between 5000-1000.31% of the respondents have an income up to

5000.

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Table – 6

DO YOU DRINK PEPSI:


Yes 55 92

No 5 8

Total 60 100.00

INFERENCE

It is clear from the above table that 92% of the respondents like PEPSI

and 8% of the respondents don’t like PEPSI.

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Table – 7

HOW DO YOU COME TO KNOW ABOUT PEPSI:


Parents 10 17

Friends 13 22

Advertisement 35 58others 2 3

TOTAL 60 100.00

INFERENCE

It is clear from the above table that 58% of the respondents came to know

about the product from advertisement, 22% from friends ,17% from parents

and 3% from others.

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`

Table – 8

DO YOU LIKE PEPSI ADVERTISEMENT:


Yes 50 83

No 10 17

Total 60 100.00

INFERENCE

It is clear from the above table that 83% of the respondents like PEPSI

advertisement and 17% of the respondents don’t like PEPSI advertisement.

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Table – 9

DO YOOU LIKE ITS PACKAGING:


Yes 45 75

No 15 25

Total 60 100.00

INFERENCE

It is clear from the above table that 83% of the respondents like packaging

of Pepsi and 17% of the respondents don’t like it.

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Table – 10

HOW DO YOU RATE PEPSI:


Bad 3 5

Satisfactory 27 45

Good 25 42Excellent 5 8

TOTAL 60 100.00

INFERENCE

It is clear from the above table that 45% of the respondents are satisfied

with the product,42% of the respondents are of the opinion that the product

is good ,8% of the respondents are of the opinion that the product is

excellent and 3% of the respondents are of the opinion that the product is

bad.

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Table – 11

DO YOU BELIEVE PEPSI IS WORTH ITS MONEY:


Yes 21 35

No 23 38

Don’t know 16 27

Total 60 100.00

INFERENCE

It is clear from the above table that 35% of the respondents believe that

pepsi is worth its money ,38% believe that pepsi is not worth its money and

27% of the respondents have no opinion about it.

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Table – 12

HOW FREQUENTLY DO YOU DRINK PEPSI:


Once in a day 8 13

Twice a day 12 20

Once in a week 25 42Others 15 25

TOTAL 60 100.00

INFERENCE

It is clear from the above table that 42% of the respondents drink pepsi

once in a week, 20% twice a day and 13% once in a day

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Table – 13

POPULARITY OF THE PRODUCT IN YOUR LOCALITY:


Less 9 15

Moderate 34 57

High 17 29

Total 60 100.00

INFERENCE

It is clear from the above table that 57% of the respondents are of the

opinion that pepsi is moderately popular in their locality,29% the

respondents are of the opinion that pepsi is highly popular in their locality

and 15% the respondents are of the opinion that pepsi is less popular in their

locality

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Table – 14

AVAILABILITY OF THE PRODUCT IN YOUR LOCALITY:


Less 4 7

Moderate 26 43

High 30 50

Total 60 100.00

INFERENCE

It is clear from the above table that 50% the respondents are of the

opinion that pepsi is highly popular in their locality,43% of the respondents

are of the opinion that pepsi is moderately popular in their locality, and 7%

the respondents are of the opinion that pepsi is less popular in their locality

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Table – 15

DO YOU THINK PEPSI IS SUPERIOR TO OTHER SIMILAR

BRANDS IN THE MARKET :


Yes 23 38

No 25 42

Don’t know 12 20

Total 60 100.00

INFERENCE

It is clear from the above table that 38% of the respondents believe that

pepsi is superior to other brands ,42% believe that pepsi is not SUPERIOR

TO OTHER BRANDS and 27% of the respondents have no opinion about it.

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FINDINGS AND SUGGESTIONS

FINDINGS

It is inferred from the analysis that maximum of the respondents

belongs to age group of 20 years and below.

It is noted from the analysis that maximum no of the respondents are

students.

It is noted from the analysis that maximum no of the respondents are

sinlge.

It is inferred from the analysis that maximum of the respondents are

having Rs5000-10000 family income per month.

From the survey I found that the consumers came to know about the

pepsi through advertisement this means that they have strong medium

of advertisement.

It was observed that most of the customers expressed their

unhappiness over the price of pepsi. despite this the consumers prefer

pepsi because of the quality and it shows that customers are very loyal

towards the pepsi brand.

During the study it is found that packaging of products is excellent,

so we can say that packaging is at its best level, which is also an

influencing factor to attract the customers.

It is inferred from the analysis that maximum no respondents agree

that promotional tools used by company are good and attractive.

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During the study it is found that the brand image of pepsi is as good

as other brands in the market.

During the study it is found that consumers have positive attitude

towards pepsi.

Through my survey, I came to know that most of the customers are

satisfied with pepsi.

Consumers do not differ in their opinion about the price of pepsi on

the basis of age.

Consumers do not differ in their opinion about the attitude towards

pepsi on the basis of age.

Consumers do not differ in their opinion about the satisfaction level

towards pepsi on the basis of age.

Consumers do not differ in their opinion about the loyalty towards

pepsi on the basis of occupation.

Consumers differ in their opinion about the price of pepsi on the

basis of occupation.

Consumers do not differ in their opinion about the quality of pepsi on

the basis of occupation.

SUGGETIONS

From the survey of consumers it is clear that not only brand positioning,

brand image and consumer demands are controlling factors of the sale of

product of the company but the attitude and satisfaction also play a major

role. Pepsi should thus focus on the following points:

During the analysis I found that company is having brand image and

people love the pepsi

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To retain existing customers means offering the best scheme. This

would automatically attract new customers.

Know the customer needs and understand them thoroughly before

they know them themselves.

There should be no compromise in quality and the availability of

pepsi.

Let the customers define what attributes are important. Know the

customer’s requirements, expectations, and wants.

Benchmark the data against competitors, and identify competitive

Strengths and weaknesses.

To use technology to improve customer service and enable a greater

degree of customer differentiation in order to deliver unique customer

interactions.

Be committed to getting better and better .

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CONCLUSION

It is concluded that brand equity might be influenced by attribute

knowledge more than consumer preference. This may be due to consumer

biasness and prejudice, Consumers’ product evaluations are influenced by

memory. The biasness can be reduced by having current information,

experience and knowledge. Therefore, it’s not surprising that brands that

consumers believe offer superior value are most preferred brands chosen

often. Brands with higher equity resulted in greater preferences and high

market shares.

Price is one of the attribute used by consumers to evaluate a product.

Price can sometimes be an indicator of quality; with a higher price indicating

higher quality. Consumers perceive that a higher price can be attributed to

the higher cost of quality control. Some consumers are highly price

sensitive; where by a high prices may shift consumers to Competitive

brands. Therefore price can have a positive or negative influence on

customers.

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BIBLIOGRAPHY

BOOKS :--

(1) Kothari C.R Research Methodology second revised edition , New Age

International publisher

(2) Philip Kotler Marketing Management Eleventh Revised Edition Eastern

Economy edition

NEWSPAPERS :--

The Hindustan times

The Times Of India

The Hindu

The Telegraph

Magazines :--

Advertising Management

Business India

Business Today

Business World

Website :--

www.pepsiworld.com

www.pepsico.com

www.google.com

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APPENDIX

QUESTIONNAIRE

A STUDY ON CUSTOMER SATISFACTION TOWARDS PEPSI

1. Name of the respondent(optional):…………………………........2. Age: less than or equal to 20 20-30 31-40 41-50 51 and above3. Sex: male female4. Occupation: student service business engineer others5. Marital status: married single 6. Income (per month): up to 5000 5000-10000 10000-20000 20000-

50000 50000 and above7. Do you drink pepsi: yes No8. How long have you been drinking pepsi:………….. Years9. How do you come to know about the product: parents friends

advertisement others10.Do you like pepsi advertisement: yes No11.Do you like its packaging: yes No12. How do you rate pepsi: Bad Satisfactory good excellent13.Do you believe pepsi is worth its money: Yes No Don’t know 14.Improvements that have to be made to the product ,if

any………………………………..................................................15.Popularity of the product in your locality: Less Moderate High16.Availability of the product in your locality: Less Moderate high17.Do you think pepsi is superior to other similar brands in the market: Yes No Don’t know

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PEPSI MINIPROJECT8

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