A COMPARATIVE STUDY ON

CONSUMPTION PATTERNS OF SOFT

DRINKS AND FRUIT JUICES

Submitted In partial fulfillment of the requirements

For the Award of the Degree of
Bachelors of Business Administration
(2006-2009)

Guided By: Submitted By:

(Ms. Poonam Chawla) Sachin Singal

(Lecturer) Roll No.: (0641471706)

MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIES

(Affiliated from Guru Gobind Singh Indraprastha University)

1
 Certificate
This is to certify that the project entitled “A Comparative study on consumption
patterns of Soft Drinks and Fruit Juices” done by Mr. Sachin Singal, Roll no.
0641471706 is an authentic work carried out by him at Maharaja Agrasen Institute of
Management Studies under my guidance. The matter embodied in this project work has
not been submitted earlier for the award of any degree or diploma to the best of my
knowledge and belief.

Date:

Signature of the guide

(Ms. Poonam Chawla)
(Lecturer)

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 Acknowledgement

I would like to thanks Dr. N.K Kakkar (Director) who has been a constant source of
inspiration and my special thanks to Ms. Poonam Chawla (project guide from the
institute) for her extensive guidance, cooperation and support.
Finally, I wish to express my gratitude to all those who have in one way or other helped
me in the successful completion of my project report.

SACHIN SINGAL

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 EXECUTIVE SUMMARY

Soft Drinks were common preference among all the individuals before juices were being
introduced,

With the changing lifestyle and income levels, people are shifting their consumption
patterns and have therefore become more health conscious thus leading to increase in
demand of juices.

Market Research is based on some underlying parameters like:

• Changing consumption pattern
• Health factor
• Status consciousness
• Varying lifestyle

The basic subject matter of the research, comparative analysis of Soft Drinks and Juices
is focused to study the mind/taste of different age group of people.
The study starts with determining the major players in the soft drinks and the juices
market, 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.

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 TABLE OF CONTENTS

 Certificate from the Institute

 Acknowledgement
 Executive Summary
 Chapter-1 Introduction Page No
1.1 Beverage 8
1.2 Overview of the Industry 11
1.3 Recent issues 14
1.4 Study of growth of Soft Drink market 20
1.5 Major players in Soft Drinks segment:
Coca-cola 21
Fanta 22
Limca 23
Sprite 24
Thums up 25
Maaza 26
Pepsi 27
1.6 Study of growth of Fruit Drink market 28
1.7 Major players in Fruit Drink segment:
Dabur Real 29
Godrej 30
Pepsi Tropicana 31
Leh berry From Ladakh Foods 32
Parle’s Frooti &Appy 33

 Chapter-2 Research Methodology

2.1 Methodology 35

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 2.2 Purpose of the study 35
2.3 Objectives of the study 36
2.4 Scope of the study 37
2.5 Research Design 37
2.6 Sampling Technique used 38
2.7 Selection of Sample Size 38
2.8 Sources of Data collection 38
2.9 Statistical Tools Used 39

 Chapter-3 Data Analysis and Findings 40

 Chapter-4 Conclusion and Suggestions 53

 Annexure 57
Questionnaire

 Bibliography 61

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INTRODUCTION

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 BEVERAGE

What is beverage?
A drink, or beverage, is a liquid specifically prepared for human consumption. In
addition to basic needs, beverages form part of the culture of human society.
or
any liquid suitable for drinking; "may I take your beverage order?"
or
A liquid to consume, usually excluding water; a drink. This may include tea, coffee,
liquor, beer, milk, or soft drinks

Types of beverage
The various types of beverage are:
• Alcoholic beverages
• Non-Alcohol beverages
• Soft drinks
• Fruit juice
• Hot beverages
• Other

1. Alcoholic beverages
An alcoholic beverage is a drink containing ethanol, commonly known as alcohol,
although in chemistry the definition of an alcohol includes many other compounds.
Alcoholic beverages, such as wine, beer, and liquor have been part of human culture and
development for 8,000 years.

2. Non-alcohol beverages

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Non-alcoholic beverages are drinks that would normally contain alcohol, such
as beer and wine but are made with less than .5 percent alcohol by volume. The category
includes drinks that have undergone an alcohol removal process such as non-alcoholic
beers and de-alcohol zed wines.

Non-alcoholic variants:
• Low alcohol beer
• Non-alcoholic wine
• Sparkling cider

3. Soft drinks

The name "soft drink" specifies a lack of alcohol by way of contrast to the term "hard
drink" and the term "drink", the latter of which is nominally neutral but often carries
connotations of alcoholic content. Beverages like colas, sparkling water, iced
tea, lemonade, squash, and fruit are among the most common types of soft drinks,
while hot chocolate, hot tea, coffee, milk, tap water, alcohol, and milkshakes do not fall
into this classification. Many carbonated soft drinks are optionally available in versions
sweetened with sugars or with non-caloric sweeteners.

4. Fruit juice
Juice is a liquid naturally contained in fruit or vegetable tissue. Juice is prepared by
mechanically squeezing or macerating fresh fruits or vegetables without the application
of heat or solvents. For example,orange juice is the liquid extract of the fruit of
the orange tree. Juice may be prepared in the home from fresh fruits and vegetables using
variety of hand or electric juicers. Many commercial juices are filtered to remove fiber or
pulp, but high pulp fresh orange juice is a popular beverage. Juice may be marketed
inconcentrate form, sometimes frozen, requiring the user to add water to reconstitute the
liquid back to its "original state"

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5.Hot beverages
Hot beverages, including infusions. Sometimes drunk chilled.

 Coffee-based beverages
 Cappuccino
 Coffee
 Espresso
 Café au lait
 Frappé
 Flavored coffees (mocha etc.)
 Latte
 Hot chocolate
 Hot cider
 Mulled cider
 Tea-based beverages
 Flavored teas (chai etc.)
 Green tea
 Pearl milk tea
 Tea
 Herbal teas
 Yerba Mate
 Roasted grain beverages
 Sanka

6.Other

Some substances may either be called food or drink, and accordingly be eaten with
a spoon or drunk, depending on solid ingredients in it and on how thick it is, and on
preference:
• Soup
• Yogurt

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 OVERVIEW OF THE INDUSTRY

The beverage market is worth $55 billion worldwide.

The tides are turning for many beverage categories. While the carbonated soft drink and
beer categories are merely treading water with flat sales, the energy drink category is
surging ahead like never before. Bottled water, ready-to-drink coffee, ready-to-drink tea
and sports drinks follow close behind with substantial sales increase- drinks without
added sugar, no beer, along with developments in juice drinks and dairy-based drinks, are
helping to turn around sales in these categories. What follows is a category-by-category
look at the state of the beverage industry, including the top brands, new products,
innovations and future trendsetters.

In order to be successful in the marketplace, one has to think in terms of health

innovation, flavor innovation, ingredient innovation and specific age groups. These are
the factors that will shape the future of the beverage industry.

“Today’s consumers are concerned with overall health and wellness. As a result, there is
significant impact on food and beverage purchases. Many studies have shown that
consumers are as concerned with good health as they are about maintaining a high quality
of life.”

Do you know what type of new beverage consumers are most likely to try? Do you know
where they are most likely to pick those products up? Do you know why?

Beverage Industry wanted to know the answers to these questions and to delve deeper
into the ever-increasing number of new product launches in the beverage market. “The
soft drink industry is training people to seek out new products, even the big guys are
coming out with limited-edition flavors, and consumers are beginning to see that there is

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more flavor activity going on in the category. Whether that really nets anybody any sales
gains is another thing, but it is teaching consumers to seek out and try new products. It’s
also trying to create some excitement there.”

In spite of several challenges and restrictions faced by this industry, it is a ‘roll’ like never
before. Customer preferences may have shifted, but they are still always on the look out
for a can of ‘coke’ or a new ‘flavored’ drink to quench their thirst.

INDIAN BEVERAGE MARKET

The size of the Indian food processing industry is around $ 65.6 billion, including $20.6
billion of value added products. Of this, the health beverage industry is valued at $230
million; bread and biscuits at $1.7 billion; chocolates at $73 million and ice
creams at $188 million.
The size of the semi-processed/ready-to-eat food segment is over $1.1 billion. Large
biscuits & confectionery units, Soya processing units and starch/glucose/sorbitol
producing units have also come up, catering to domestic and international markets.
The three largest consumed categories of packaged foods are packed tea, biscuits and soft
drinks. The Indian beverage industry faces over supply in segments like coffee and tea.
However, more than half of this is available in unpacked or loose form. Indian hot
beverage market is a tea dominant market. Consumers in different parts of the country
have heterogeneous tastes. Dust tea is popular in southern India, while loose tea in
preferred in western India. The urban-rural split of the tea market was 51:49 in 2000.
Coffee is consumed largely in the southern states. The size of the total packaged coffee
market is 19,600 tones or $87 million. The total soft drink (carbonated beverages and
juices) market is estimated at 284 million crates a year or $1 billion. The market is highly
seasonal in nature with consumption varying from 25 million crates per month during
peak season to 15 million during off-season. The market is predominantly urban with 25
per cent contribution from rural areas. Coca cola and Pepsi dominate the Indian soft
drinks market. Mineral water market in India is a 65 million crates ($50 million)
industry. On an average, the monthly consumption is estimated at 4.9 million crates,
which increases to 5.2 million during peak season.

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13
 RECENT ISSUES

1. Xtazy, another energy drink for the Indian market

The Indian market for energy drinks was estimated recently to have a size of Rs 500
crore, about 90 million Euros. The market which is so far dominated by Red Bull, is
attracting various new players which want to get a share in a growing business.

One of the aspirants is Xtazy, an energy drink from the US. “Xtazy is the forth largest
energy drink inthe US”, says Rohan Malhotra, Managing Director of R. M. Indian Liquor
Pvt. Ltd., the exclusive importer for Xtazy. Malhotra has launched Xtazy already in
Eastern India, and was looking now for a distributor in the Delhi area, when FII spoke to
him during IFE fair in Delhi recently.

In order to take on Red Bull and get a share of 20% from their business, Malhotra
wants to offer better conditions to distributors. “We provide a margin of 6-8% to a
distributor, who thus can earn about Rs 6 a can”, Malhotra says. “ This is more than what
Red Bull offers which is only about 2 – 3 Rs per can.” Xtazy is available in cans of 350
ml, thus more than the usual 250 ml of other energy drinks, and will be priced with a
MRP of Rs 85. Four variants are offered, Cranberry Blast, Sugar Free Passion Fruit-
Pineapple, Orange Blast and Lime Blast.

Malhotra has planned several marketing measures to promote Xtazy, like PoS actions,
coupons and direct marketing in a first round, and night parties in a second round. In
marketing communication, he is highlighting not only the variants, but also health effects
as the USPs of Xtazy, which are derived from ancient herbs used in the drink like gingko
and guarana. The extract of gingko biloba leaf has been shown to dilate blood vessels and
has the ability to increase peripheral blood circulation, especially to the brain, the
company writes in a leaflet. Guarana from Brasil would serve to promote weight loss by
increasing the metabolic rate and reducing the appetite.

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 Besides the US, Malhotra says, Xtazy would be marketed also in Israel, Ukraine and
in Turkey and would soon be launched in China.

2. Australia-based "Aromas" launches first coffee store in India.

Australia-based "Aromas," one of the leading coffee chain shops, launched its first café
outlet in India at Hiranandani, Powai, and Mumbai. The company also tied up with Ideal
Hospitality Private Ltd (IHPL), which would own the brand in the country and south-east
Asia.

Jayant Mahiskar, chairman and MD, IHPL, said, "Aromas is being launched keeping in
mind the true coffee connoisseurs. We aim at targeting the youth and corporate at our
outlets and Powai with a mix of residential and office complexes was a natural choice.
The coffee has been created from selection of the original beans and blended to suit all
tastes. Aromas ensures freshness and fullness of flavor." According to the agreement with
Aromas, IHPL will pay about 1.5% of the gross revenue earned.

Further, the company has decided to invest about Rs. 50-75 crore in the next three years
to expand its footprint with 99 outlets in India.

3. China rejects Coke bid to take-over major juice maker

China has rejected Coca-Cola's $2.5 billion bid to buy a major Chinese juice maker. The
purchase of Huiyuan Juice Group Ltd would have been the biggest foreign acquisition of
a Chinese company to date. The proposed purchase was rejected on anti-monopoly
grounds, the Chinese commerce ministry announced on its website.

Coca-Cola's bid in September prompted an outcry by nationalists who urged the

government to bar foreigners from acquiring one of China's most successful homegrown
brands. Rival juice producers warned that the acquisition would give Coca-Cola too
dominant a position in China's beverage market. A Coca-Cola spokesman in Hong Kong

15
learned of the rejection of the sale had no immediate comment. Huiyuan's founders and
major shareholders already had endorsed the sale.

If Coke were to take over Huiyuan, it will dominate the soft drinks market in China,
which not only hurts consumers, but also other sector participants. Huiyuan controls more
than a tenth of the Chinese fruit and vegetable juice market that grew 15% last year to $2
billion. Coca-Cola has a 9.7% share and dominates in diluted juices.

According to analysts China's ruling on Coke could cut both ways in that Chinese firms
that have been making increasingly high profile acquisitions abroad may run into trouble
of their own.

4. Pepsi's Slice kicks off the new season with 'Aamsutra'

PepsiCo's popular mango juice drink brand- Slice kicks off the 2009 season with it's new
'Aamsutra' concept.
According to Homi Battiwalla, business head, juice & juice drinks, PepsiCo India, Slice
had seen powerful consumer momentum post the re-launch of 2008. The new winning
formulation has been appreciated by consumers. Aamsutra has driven strong disruption in
the juice and juice drink category. All of this has made Slice the fastest growing mango
drink brand in the country.
"South India is the lead market for mango drinks in the country. Andhra Pradesh is the
biggest mango market and also the fastest growing market for Slice and mango drinks in
the country. Tamil Nadu is amongst the top three states and Slice is the market-leader in
Tamil Nadu," he added

Pepsi has now opted for a new brand ambassador, Katrina Kaif.

"The creative thought behind the new communication was to further enhance the Slice
experience into dimensions of pleasure, sensuality and indulgence. Last year's
commercial was about enumerating the principles of 'Aamsutra' or the art of experiencing
pure mango pleasure with the new Slice. This year, the commercial portrays the next

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level to bring alive the mango indulgence, stated Hari Krishnan, Vice President, JWT.
The company has now opted for a 360 multimedia campaigns involving digital, print,
radio, impact outdoors and sampling in core markets.

5. Parle Agro launches lemon flavoured drink "LMN"

Parle Agro, one of the leading food & beverage companies in India, has launched a new
fruit-based lemon drink LMN in the non-carbonated segment. The new brand is a natural
lemon juice drink and the only brand in India with a taste closest to home made, fresh
lime water (Nimbu pani). According to the company, LMN will offer consumers a
healthy, refreshing drink with the goodness of vitamin C. Every summer, the Indian
beverage market has seen cola majors battle it out. This summer, the launch of LMN will
see the cola wars taking a back seat and the battle spilling over to the non-cola segment,
to be more precise in the nimbu paani category. PepsiCo India last week launched a
nimbu pani drink, Nimbooz, under the 7Up brand

On the occasion of LMN's launch, Nadia Chauhan, joint managing director and CMO,
Parle Agro, said, "Nimbu pani has traditionally been India's most commonly consumed
cold beverage. In fact the idea of a branded lemon drink is so simple that you would
wonder why nobody thought of it earlier. The challenge for us was packaging a natural
product while retaining its fresh, original taste throughout its shelf life."

LMN will be available in 110 ml Tetra, 200 ml Tetra and 500 ml PET packs priced at Rs
5, Rs 10 and Rs 23 respectively. The company aims to touch a turnover of Rs 3000-3500
crore by 2011.
The company will target both (youth and adult) segments of consumers to turn them into
branded consumers of nimbu pani. Besides this LMN will also target an emerging
segment of consumers who are looking for a healthy and refreshing beverage in the
country. "For the last 20 years, Parle Agro has been the market leader in fruit based
beverages, we have constantly worked keeping in mind Indian preferences while
formulating products that cater to the Indian palate. It is without any doubt that only an
Indian company can understand what real nimbu pani tastes like and what the Indian

17
consumer wants in a packaged offering," Chauhan added.
Further, the company claims that packaged nimbu pani will have tremendous growth
potential, higher than other packaged drinks mainly because of a major shift in consumer
behavior. Today, the beverage consumer is looking for hygiene, convenience, refreshing
taste, affordability and year-round availability. The name LMN is derived from the SMS
version of the word lemon. Parle Agro also owns other fruit drink brands like Frooti,
Appy Fizz and packaged drinking water, Bailey.

6. PepsiCo launches 'Nimbooz,' packaged lemon juice with no fizz and

artificial flavours

PepsiCo India has launched its packaged nimbu paani, Nimbooz, under its 7Up brand.
The home-made nimbu paani or lime juice has been specially created to suit Indian tastes.

The lemon juice, no fizz and artificial flavours, is available in trendy, convenient packs.

The drink offers great value to consumers in three packaging formats of 200 ml
returnable glass bottles (RGB), 350 ml PET and 200 ml Tetra attractively priced at Rs 10,
Rs 15 and Rs 10, respectively.
According to Ms Punita Lal, Executive Director- Marketing, PepsiCo India, Nimbooz, is
specially developed to suit Indian tastes and preferences.

"Nimbooz is an affordable offering for consumers on the go because of its ready-to-drink

format that is both convenient and hygienic. The proposition of the Indian refresher
perfectly captures the mass appeal of this product and will certainly drive consumer
connect, stated Ms Alpana Titus, Executive VP-Flavours, PepsiCo India.

PepsiCo has drawn up an intensive consumer activation campaign to market Nimbooz.

The 360 degree marketing communication plan will revolve around building awareness
through multi-city launches and road shows, comprehensive 3D activation, leveraging
Out-of-Home (OOH) media, radio, press and outdoors. Aggressive trial generation and

18
sampling initiatives will also be taken forward across major cities of the country. A
special 'Nimbooz Highway Gadi' has been created that will visit the four major highways
connecting Delhi to Jaipur, Dehradun, Agra to drive trails and consumer education.

7. Coke launches fruit-flavoured Fanta Apple nationally

After successfully introducing it in southern markets last year, Coca-Cola India has
launched its fruit-flavoured soft drink 'Fanta Apple' nationally. The product is available in
200 ml and 300 ml returnable glass bottles and also in 500 ml PET pack priced at Rs 8,
Rs 10 and Rs 22 respectively.

During the Fanta Apple launch in October 2008, Venkatesh Kini, marketing vice-
president, Coca-Cola India, said that the company had planned to reach about 3.5 lakh
customers with sample apple flavoured drink to extend its market leadership in the fruit
flavoured segment in Andhra Pradesh and Tamil Nadu.

"As per consumer research, we have found that after orange, apple is the most preferred
fruit in the country and Fanta Apple has been developed specially for the Indian palate,"
Kini said on Monday. According to experts, the nationwide launch of Fanta Apple is a
part of the company's $250 million business plan for the country.

Fanta Apple is the second flavour after Fanta Orange under "Fanta" brand of the
company. "We have had an excellent response down south with a reused value to the
drink and with the national launch of Fanta Apple, we are stepping stones to extend Coca
Cola India's market leadership in the fruit-flavoured sparkling drink segment," Kini
added. The company has also announced Bollywood actress Genelia D'Souza as the new
brand ambassador of the Fanta brand.

According to reports, the current expected Indian soft drink market is about Rs 6,000
crore, in which the company shares about 50% market with its various brands like Coke,
7 Up, Fanta, Sprite and Thums Up.

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 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%.
• 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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 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.
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.

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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.

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LIMCA: 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.

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SPIRITE: 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 today’s youth
to trust their instincts, influence them to be true who they are and to obey their thirst.

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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.
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.

25
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.
“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 emotional
benefit to the moms rightly captured in tagline, “yaari dosti, and taaza maaza”.

26
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
1890’s in North 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)
• Pepsi next(available in Japan & south Korea)

27
STUDY OF GROWTH OF FRUIT DRINK MARKET

FRUIT JUICES

Branded fruit juice market in India holds an immense potential.

Usually confused and considered synonymous with non-aerated drinks, fruit pulps, juices
and squash are high sugar beverages, which are centrifuged and filtered to give a semi-
clear appearance.

In the past, this sector enjoyed an excise exemption, keeping cost at minimal. However
the withdrawal of exemption has inflated costs and can affect growth, with dramatic
change possible on reintroduction of excise exemption.

MARKET

• The organized fruit beverage market is estimated at Rs.500 crores market.

(Nectars, drinks and juices combined).
• The market has grown at a 20% to 25% rate.
• Of this, more expensive juices segment has grown at rate of 40%this year. It
accounted for only 15% of the fruit beverage 3 years back.
• In –home consumption of juices has gone up from 30%, three years back to
80%today.
• Mango based drinks account for two thirds of fruit drinks industry.

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 MAJOR PLAYERS IN THE FRUIT DRINK
SEGMENT

DABUR REAL

Dabur’s flagship brand real fruit juice is a market leader in packaged fruit juice category.
Real was launched in 1996 and the brand has carved a niche for itself by claiming to be
the only fruit juice in packaged form .i.e.100%preservative free.
Real, with market share of 57% comes in nine flavors:
• Orange
• Mango
• Pineapple
• Mix fruit
• Grape
• Guava
• Litchi
• Tomato

• Cranberry

Real Active is 100%fruit juice with no added sugar and is available in following variants:

29
 • Orange
• Apple
• Orange- carrot

GODREJ

The food division of godrej industry produces and market fruit drinks, fruit nectar and
sofit soymilk. Godrej’s brand JUMPIN comes in the following flavor:

• Mango
• Pineapple
• Apple
• Litchi
• Orange

Godrej’s x’s is a range of fruit nectar with more fruits. It’s available in following flavors:

• Orange
• Apple
• Grape

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PEPSI’S TROPICANA

Tropicana brand fruit juice enjoys a market share of 25% and has registered a double
digit growth and has outpaced the growth of fruit juice market in India. It is available in
following flavors:

• Orange
• Apple
• Grape
• Cranberry

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LEH BERRY

It is a product from Ladakh Foods. Its first fruit juice in Delhi and it's selling it in the
more affluent parts of town. It enjoys a market share of 4% and is available in a variety of
flavors:

• Pineapple
• Apple
• Mixed fruit
• Orange
• Blackcurrant
• Mango
• Guava

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PARLE’S FROOTI and APPY

Frooti was launched back in 1985 and enjoys market dominance with 85% of market
share. Parle’s Agro’s APPY, in 1996 had a market share of 5% in the fruit drink segment;
in 2003 its new variant-APPY FIZZ was launched.

33
RESEARCH METHODOLOGY

34
 METHODOLOGY

Every project work is based on certain methodology, which is a way to systematically

solve the problem or attain its objectives. It is a very important guideline and lead to
completion of any project work through observation, data collection and data analysis.
According to Clifford Woody,
“Research Methodology comprises of defining & redefining problems, collecting,
organizing &evaluating data, making deductions &researching to conclusions.”
Accordingly, the methodology used in the project is as follows: -
Defining the objectives of the study
Framing of questionnaire keeping objectives in mind (considering the objectives)
Feedback from the respondents
Analysis of feedback
Conclusion, findings and suggestions.

PURPOSE OF THE STUDY

The main aim of this research study is to analyze the preference of people (of different
age groups) on consumption patterns of Soft Drinks and Fruit Juices.

35
 OBJECTIVE OF THE STUDY

• To study the preferences of the people for soft drinks and fruit juices.

• To find out the factor(s) that influences the consumer’s consumption of soft drinks
and fruit juices.

• To test the know-how of the consumers regarding the various existing brands of
soft drinks and fruit juices.

• To explore the next best beverage after soft drinks and fruit juices.

• To find out how the beverage is positioned in the mind of the consumers.

36
 SCOPE OF THE STUDY

• This study is confined to the North West Delhi region covering areas of
Paschim Vihar, Pitam Pura, Rohini area, Punjabi Bagh.

• Seasonal drinks are not considered in the study.

• We are considering only canned juices.

• We are not considering water & 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:

EXPLORATORY RESEARCH

37
CONCLUSIVE RESEARCH

Exploratory research is one type of research design, which has its primary
objective 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 the 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 100 has been taken into consideration.

SOURCES OF DATA COLLECTION:

38
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
• Pie Charts
• Bar Diagrams

39
DATA ANALYSIS & FINDINGS

40
Q1. What do you prefer to drink? (Tick any 1)

Particulars No. of Respondents Percentage

Soft Drinks 57 57%

Fruit Juices 43 43%
Total 100 100%

60% 57%
No. of Respondents

50%
43%

40%

30% Series1

20%

10%

0%
Soft Drinks Fruit juices

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 57% of the respondents prefer Soft Drinks to drink.

b) 43% of the respondents prefer Fruit Juices to drink.

41
Q2. Frequency of consumption of your preferred drink in a week?

SOFT DRINKS

Particulars No. of Respondents Percentage

Daily 28 49%
2-6 times 23 40%
Above 7 6 11%
Total 57 100%
No. of Respondents

60%

49%
50%
40%
40%

30% Series1

20%
11.00%
10%

0%
Daily 2-6 times Above 7
Weekly Consumption

ANALYSIS:

From the survey it was found that amongst 57 respondents.

a) 49% of the respondents consume Soft Drinks daily.

42
b) 43% of the respondents consume Soft Drinks 2-6 times.
c) 11% of the respondents consume Soft Drinks more than 7 times.
FRUIT JUICES

Particulars No. of Respondents Percentage

Daily 10 23%
2-6 times 30 70%
Above 7 3 7%
Total 43 100%

35
30
No. of respondents

30

25

20
Series1
15
10
10

5 3

0
Daily 2-6 times Above 7
weekly consumption

ANALYSIS:

From the survey it was found that amongst 43 respondents.

a) 23% of the respondents consume Fruit Juices daily.

b) 70% of the respondents consume Fruit Juices 2-6 times.
c) 07% of the respondents consume Fruit Juices more than 7 times.

43
Q3. On what occasions, do you often consume the Soft Drinks?

Particulars No. of Respondents Percentage

Feeling Thirsty 18 18%

Parties / Celebrations 45 45%
Without any reason (just 25 25%
like that)
Others 12 12%
Total 100 100%

Feeling Thirsty
12% 18%

Parties /
Celebrations
25%
Without any
reason (just like
that)
Others
45%

ANALYSIS:

From the survey it was found that amongst 100 respondents.

a) 18% of the respondents consume Soft Drinks when they feel thirsty.
b) 45% of the respondents consume Soft Drinks at the time of celebrations.
c) 25% of the respondents consume Soft
44Drinks without any reason.
d) 12% of the respondents consume Soft Drinks on other occasions.
Q4. On what occasions, do you often consume the Fruit Juices?

Particulars No. of Respondents Percentage

Feeling Thirsty 17 17%

Parties / Celebrations 32 32%
Without any reason (just 24 24%
like that)
Others 27 27%
Total 100 100%

Feeling Thirsty
17%
27%
Parties /
Celebrations

Without any
reason (just like
32% that)
24% Others

ANALYSIS:

From the survey it was found that amongst 100 respondents.

a) 17% of the respondents consume Fruit Juices when they feel thirsty.
b) 32% of the respondents consume Fruit Juices at the time of celebrations.
c) 24% of the respondents consume45
Fruit Juices without any reason.
d) 27% of the respondents consume Fruit Juices on other occasions.
Q5. What induces you to buy Soft Drinks?

Particulars No. of Respondents Percentage

Price with quantity 30 30%

Health Drink 4 4%
Status symbol 8 8%
Taste 32 32%
Variety 26 26%
Total 100 100%

35 32
30
No. of respondents

30
26
25

20
Series1
15

10 8
4
5

0
Price with Health Status Taste Variety
quantity Drink symbol

Factors

ANALYSIS:

From the survey it was found that amongst 100 respondents.

a) 30% of the respondents consume soft drinks because of its price.

b) 04% of the respondents consume soft drinks because it is a health drink.
c) 46 drinks because it is a status symbol.
08% of the respondents consume soft
d) 32% of the respondents consume soft drinks because of its taste.
e) 26% of the respondents consume soft drinks because of its variety.
Q6. What induces you to buy Fruit Juices?

Particulars No. of Respondents Percentage

Price with quantity 13 13%

Health Drink 40 40%
Status symbol 15 15%
Taste 22 22%
Variety 10 10%
Total 100 100%

45 40
40
No. of respondents

35
30
25 22
Series1
20 15
15 13
10
10
5
0
Price with Health Status Taste Variety
quantity Drink symbol

Factors

ANALYSIS:

From the survey it was found that amongst 100 respondents.

a) 13% of the respondents consume fruit juices because of its price.

b) 40% of the respondents consume fruit juices because it is a health drink.
c) 47 juices because it is a status symbol.
15% of the respondents consume fruit
d) 22% of the respondents consume fruit juices because of its taste.
e) 10% of the respondents consume fruit juices because of its variety.
Q7. If not a Soft Drink or a Fruit juice, which other beverage (other than water) tops your
mind?

Particulars No. of Respondents Percentage

Coffee 30 30%
Tea 25 25%
Shakes(Milk/Ice cream/Fruit) 8 8%
Lassi 12 12%
Sharbat 25 25%
Total 100 100%

Coffee

25%
30% Tea

Shakes(Milk/Ice-
cream/Fruit)
12% Lassi

8.00% 25% Sharbat

ANALYSIS:

From the survey it was found that amongst 100 respondents.

a) 30% of the respondents prefer coffee.

b) 25% of the respondents prefer tea.
c) 48
08% of the respondents prefer Shakes.
d) 12% of the respondents prefer Lassi.
e) 25% of the respondents prefer Sharbat.
Q8. How do you rate canned juices as compared to fresh juices?

Particulars No. of Respondents Percentage

Equivalent to fresh juices 24 24%

Have artificial added 36 36%
flavor
Healthy with preservatives 40 40%
Total 100 100%

24%
Equivalent to fresh
40% juices
Have artificial
added flavor
Healthy with
preservatives
36%

ANALYSIS:

From the survey it was found that amongst 100 respondents.

a) 24% of the respondents think canned juices are Equivalent to fresh juices.
b) 36% of the respondents think canned juices Have artificial added flavor.
49 juices are Healthy but have
c) 40% of the respondents think canned
preservatives.
Q9. How do you view Soft Drinks?

Particulars No. of Respondents Percentage

As a health drink 4 4%
As a status symbol 8 8%
As an aid to put off thirst 55 55%
Any other 33 33%
Total 100 100%

60 55
No. of respondents

50

40
33
30 Series1

20

8
10 4

0
As a As a As an aid Any
health status to put off other
drink symbol thirst

ANALYSIS:

From the survey it was found that amongst 100 respondents.

a) 04% of the respondents view Soft Drinks as a health drink.

b) 08% of the respondents view Soft Drinks as a status symbol.
c) 55% of the respondents view Soft50Drinks as an aid to put off thirst.
Q10. How do you view Fruit Juices?

Particulars No. of Respondents Percentage

As a health drink 40 40%

As a status symbol 15 15%
As an aid to put off thirst 32 32%
Any other 13 13%
Total 100 100%
No. of respondents

45
40
40
35 32
30
25
Series1
20
15
15 13

10
5
0
As a As a As an aid Any
health status to put off other
drink symbol thirst

ANALYSIS:

From the survey it was found that amongst 100 respondents.

a) 40% of the respondents view Fruit Juices as a health drink.

b) 15% of the respondents view Fruit Juices as a status symbol.
c) 32% of the respondents view Fruit Juices as an aid to put off thirst.
51
Q11. Do advertisements affect your purchases?

Particulars No. of Respondents Percentage

Yes 77 77%
No 23 23%
Total 100 100%

23%

Yes
No

77%

ANALYSIS:

From the survey it was found that amongst 100 respondents.

a) 77% of the respondents think that advertisements affect their purchases.

b) 23% of the respondents think that advertisements do not affect their
purchases.
52
CONCLUSION, SUGGESTIONS AND LIMITATIONS

53
 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 57%of people like to
have soft drinks while 43% go for juices.

• Through the research it was conveyed that weekly consumption of soft drinks is
higher than the weekly consumption of juices.

• A majority of the respondents consume soft drinks and fruit juices at the time of
parties & celebrations.

• Most of the respondents consume soft drinks because of its taste and price.

• Most of the respondents consume fruit juices because it is healthy.

• As it is seen that canned Juices enjoys the largest market share though they do contain
some preservatives but majority of the respondents consider it healthy.

• Most of the respondents view soft drinks as an aid to put off thirst and fruit juice as a
health drink.

• Most of the respondents (77%) were of the strong view that advertisements affect
their purchases and the rest (23%) were not at all affected by the advertisements.

54
 SUGGESTIONS

• With the changing lifestyle, people have started becoming more health conscious.
Therefore, the fruit juice company’s should use appropriate marketing techniques
thereby reducing the demand for soft drink in the future.

• The survey shows that parties/celebrations are the places where these drinks are
consumed mostly. The company’s must try to increase the sales by creating and
focusing on more utilities so that their product is used more frequently.

• As it is seen that people consider canned juices to be healthy with preservatives.

This shows that awareness level of the people is low and needs to be corrected.
Therefore, various methods like campaigns by government, help by media, etc
can be taken to change this.

55
 LIMITATIONS

• The study was confined to some areas of New Delhi only.

• The study does not take into account the sales affected of the soft drink segment
due to the entry of juices.
• Retailers view and the companies view to the questionnaire were not available.
• Time and cost constraints were also there.
• Chances of some biasness could not be eliminated.
• A Samples size of 100 has been use due to time limitations.

56
ANNEXURE

57
 QUESTIONNAIRE
PERSONAL DETAILS
Name - _________________
Age - 15-25 25-35 35-50
Gender - Male Female
Occupation - Student Housewife Business Service

Hello! I am Sachin, a student of management school and am required to submit project on

a comparative study of consumption of Soft Drinks and Fruit Juices. For the purpose, I
am conducting the survey. Will you please take a few minutes to answer some questions?
I assure you that your answers will be kept completely confidential.

Q1. What do you prefer to drink? (Tick any 1)

a) Soft Drinks
b) Fruit Juices

Q2. Frequency of consumption of your preferred drink in a week?

a) Soft Drinks, Daily b) Fruit Juices, Daily
2-6 times 2-6 times
Above 7 Above 7
Q3. On what occasions, do you often consume the Soft Drinks?
a) Feeling Thirsty
b) Parties / Celebrations
c) Without any reason (just like that)
d) Others, please specify ________

Q4. On what occasions, do you often consume the Fruit juices?

a) Feeling Thirsty

58
b) Parties / Celebrations
c) Without any reason (just like that)
d) Others, please specify ________
Q5. What induces you to buy Soft Drinks?
a) Price with quantity ______
b) Health Drink ______
c) Status symbol ______
d) Taste ______
e) Variety ______

Q6. What induces you to buy Fruit Juices?

a) Price with quantity ______
b) Health Drink ______
c) Status symbol ______
d) Taste ______
e) Variety ______

Q7. If not a Soft Drink or a Fruit juice, which other beverage (other than water) tops your
mind?
a) Coffee
b) Tea
c) Shakes (Milk/Ice-cream/Fruit)
d) Lassi
e) Sharbat

Q8. How do you rate canned juices as compared to fresh juices?

a) Equivalent to fresh juices
b) Have artificial added flavor
c) Healthy with preservatives

59
Q9. How do you view Soft Drinks?
a) As a health drink
b) As a status symbol
c) As an aid to put off thirst
d) Any other, please specify ________

Q10. How do you view Fruit Juices?

a) As a health drink
b) As a status symbol
c) As an aid to put off thirst
d) Any other, please specify ________

Q11. Do advertisements affect your purchases?

a) Yes
b) No

Q12. Name any three brands of Fruit juices & Soft Drinks that are there in your mind at
present?
Soft Drinks Fruit Juices
______ ______
______ ______
______ ______

60
 BIBLIOGRAPHY

• http://en.wikipedia.org/wiki/Beverage

• www.foodindustryindia.com

• http://fnbnews.com/article/detarchive.asp?articleid=25105&sectionid=3

• http://fnbnews.com/article/detarchive.asp?articleid=24983&sectionid=3

• http://fnbnews.com/article/detarchive.asp?articleid=24965&sectionid=3

• http://fnbnews.com/article/detarchive.asp?articleid=24849&sectionid=3

• http://fnbnews.com/article/detarchive.asp?articleid=25039&sectionid=3

• http://www.foodindustryindia.com/newfood/detailnews.jsp?n=Xtazy,%20anot
her%20energy%20drink%20for%20the%20Indian%20market&id=598

• http://fnbnews.com/redfr.asp?fn=/other/aboutus.asp&title=About%20Us#Foo
d&beverage

• www.google.com

• Kothari C R, “Research and Methodology- Methods & Techniques”, New Age

International (P) Ltd., 2004

61