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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

PROJECT REPORT ON

CONSUMER BEHAVIOUR TOWARDS SOFT


DRINKS

CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

A PROJECT ON

CONSUMER BEHAVIOUR TOWARDS SOFT DRINKS

SUBMITTED BY
MS. SNEHA DHARMARAJ
FOR THE DEGREE OF

THE BACHELOR OF MANAGEMENT STUDIES


UNDER THE GUIDANCE OF

MISS MANASI SHAH

SIES COLLEGE OF COMMERCE AND ECONOMICS


SION(EAST) , MUMBAI 4000____
ACADEMIC YEAR 2013 2014

CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

DECLARATION
I, SNEHA DHARMARAJ OF SIES COLLEGE OF COMMERCE AND ECONOMICS,
SION(E), HEREBY DECLARE THAT I HAVE COMPLETED THE PROJECT ENTITLED
CONSUMER BEHAVIOUR TOWARDS SOFT DRINKS IN PARTIAL FULFILLMENT
OF THE REQUIREMENT FOR THE THIRD YEAR OF THE BACHELOR OF
MANAGEMENT STUDIES COURSE FOR THE ACADEMIC YEAR 2013-2014

I FURTHER DECLARE THAT INFORMATION SUBMITTED BY ME IS TRUE AND


ORIGINAL TO THE BEST OF MY KNOWLEDGE.

DATED:

_________
SNEHA DHARMARAJ

CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

CERTIFICATE
I MS. MANASI SHAH HEREBY CERTIFY THAT MS.SNEHA DHARMARAJ STUDYING
IN TYBMS AT SIES COLLEGE OF COMMERCE AND ECONOMICS, SION(E) HAS
COMPLETED A PROJECT ON CONSUMER BEHAVIOUR TOWARDS SOFT DRINKS
IN THE ACADEMIC YEAR 2013-2014 UNDER MY GUIDANCE.

I FURTHER CERTIFY THAT THE INFORMATION SUBMITTED IS TRUE AND ORIGINAL


TO THE BEST OF MY KNOWLEDGE.

DATED:
PLACE:

--------------------------

----------------------------

PROJECT GUIDE

EXTERNAL GUIDE

---------------------------

------------------------

COURSE CO-ORDINATOR

PRINCIPAL

COLLEGE SEAL:
DATE:
PLACE:

CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

ACKNOWLEDEGEMENT
I EXPRESS MY SINCERE THANKS TO MS MANASI SHAH FOR HER VALUABLE
GUIDANCE IN DOING THIS PROJECT.

I WISH TO TAKE THE OPPORTUNITY TO EXPRESS MY DEEP SENCE OF GRATITUDE


TO PRINCIPAL Dr.

MINU THOMAS FOR HER INVALUABLE GUIDANCE AND

SUPPORT IN THIS ENDEAVOUR. THEY HAVE BEEN A CONSTANT SOURCE OF


INSPIRATION.

FINALLY IT IS THE FOREMOST DUTY TO THANK ALL MY RESPONDENTS, FAMILY &


FRIENDS WHO HAVE HELPED ME DIRECTLY OR INDIRECTLY IN COMPLETING MY
FIELD WORK, WITHOUT WHICH THIS PROJECT WOULD NOT HAVE BEEN
SUCCESSFUL.

MS. SNEHA DHARMARAJ


DATE:

CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

INDEX

SR.NO

1.

2.

PARTICULARS

PG.NO

CHAPTER 1:
1.1:- EXECUTIVE SUMMARY

10

1.2:- ABOUT THE STUDY

12

CHAPTER 2
2.1:- CONSUMER BEHAVIOUR

15

2.2:-DIVERSITY OF CONSUMER BEHAVIOUR

17

2.3:- NEED FOR STUDYING CONSUMER BEHAVIOUR

19

2.4:- STUDY OF CONSUMER BEHAVIOUR

21

2.5:- CONSUMER BEHAVIOUR-A TOOL FOR MARKETING

23

2.6:-PERCEPTION

26

CHAPTER 3
3.1:- BEVERAGES AND INTRODUCTION

29

3.2:- OVERVIEW OF THE INDUSTRY

33

3.3:- INDIAN BEVERAGE MARKET

35

3.4:-SOFT DRINK INDUSTRY

36

3.5:- GROWTH OF THE SOFT DRINK INDUSTRY

40

3.6:- RECENT ISSUES.

45
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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

4.

5.

CHAPTER 4
4.1:- TWO RIVALS.

51

4.2:- PEPSI-CO

55

4.3:- COCA-COLA

59

4.4:- STRATEGIES ADOPTED BY COKE AND PEPSI

61

CHAPTER 5
5.1:- METHODOLOGY

6.

62

CHAPTER 6
6.1:- CONCLUSION

81

6.2:- ANNEXURE

82

6.3:-BIBLIOGRAPHY

84

CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

CHAPTER 1

CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

1.1 EXECUTIVE SUMMARY


Marketing is too important to be left to the marketing department. David Packard of
Hewlett Packed. The Indian market is getting to be consumer-led. This is the reason
behind the unprecedented boom in advertising. Below the line marketing activities, fast
distribution system and more sophisticated consumer research. On the media front,
satellite proliferation has trigged of a new genre of media research, which is highly
viewer ship based. The dilemma that all marketers are facing is getting the maximum
done in the minimum possible time. And with brand loyalty becoming a thing of the past,
given the choice available to the consumer pull. The consumer could be a purchaser of
end products, or a financial investor, or even an industrial purchaser. Everywhere, there is
a new thrust on marketing and advertising. The hyper activity in the market place is
seeing a boom in support services, with a number of independent agencies mushrooming
to provide them. Co-related to the market book, services are well on their becoming a
major industry. The creative leap is increasingly being governed by market realities and
consumer research. And Clint interface is no longer limited to the Clint service people,
but including all specialists in agencies. The entry multinational products in to the
country are seeing more emphasis aid world- class quality. This along with the loosening
of regulations is seeing export gaining ground. From thinking along the lines of merely
exporting spares and raw material the exporters and now looking towards finished
products. A multiplier to this is the joint venture companies looking at becoming export
manufacturing bases.
It is well known fact that people in India do not just watch their favourite sport, film or
serial, many are watching to see the commercials. Regardless of how good the game was,
there are usually a few ads that people talk about the next day. But one thing that people
may not think about is how trustworthy an advertisement may be and, at a higher level,
how much trust one can, or cannot, place in an industry's advertisements. In Indian
scenario it is proved that advertisements from soft drink companies are most effective. As
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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

we know these days soft drink companies are advertising their product so much on
televisions and are spending so much money on the celebrities to endorse their products.
In soft drink industry the cost of advertising is nearly 35 % of the total cost. For
increasing the sale of their product they are taking film stars, cricket stars in their
advertisements of their products which are again very costly. The new economic policies
of the Government of India adopted in the mid eighties were further impetus by the early
nineties. The Indian market has under gone considerable change, as a direct consequence
of many of these policies and soft drink industry is no exception to this. Keeping the
above mention perspective in the background, the researcher has selected soft drink
market, since the marketing task has become more challenging and intensive competition
as opened up new vistas. Companies are evolving marketing strategies by studying the
demands of the market place increasingly penetrating in to appropriate market segments
introducing differentiated products to improve their market share. The soft drink market
has achieved an accelerated growth in the past decade.
Therefore we took this as opportunity to study consumer perception and behaviour
towards carbonated soft drinks.

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1.2 ABOUT THE STUDY


Need of the study: Prior to 1991, when there were restrictions on foreign companies to operate in the
country, brands like Thums up, Limca, Gold spot dominated the market. Their presence
into Indian market since 1960s shows the old age of Indian soft drink sector. With the
privatization and liberalization with 1991 policy reforms which invited brands like Coke
and Pepsi, Indian soft drink market staggered more growth than before. Indian soft drink
sector is very dynamic and ever changing, may be speedier than market place. It has
brought into lot of reforms and adjusted themselves according to the consumer
preferences. Today, with varied choices available in the sector consumer perceptions are
constantly changing. Thus I felt, there is a need to understand consumer perception
towards carbonated soft drinks. It would be worthwhile to understand what consumer
thinks about particular brand..
Scope of the study: Various inferences can be drawn on Indian soft drink market. This particular report tries
to accomplish above defined objectives and frames itself in form of various chapters and
sub chapters.
Limitation of the study: -

Study limits itself towards understanding of consumer perception towards soft drinks.
Primary research has been done in-order to find out most preferred soft drink brand.
Data collection: -

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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

Data has been collected with the help of primary as well as secondary sources. Primary
source include on field survey with questionnaire where as secondary source include
various journals, magazines, books and webliography

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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

CHAPTER 2

2.1 CONSUMER BEHAVIOUR


Consumer behaviour is the study of when, why, how, and where people do or do not buy
product. It blends elements from psychology, sociology, social anthropology and
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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

economics. It attempts to understand the buyer decision making process, both


individually and in groups. It studies characteristics of individual consumers such as
demographics and behavioural variables in an attempt to understand people's wants. It
also tries to assess influences on the consumer from groups such as family, friends,
reference groups, and society in general. Customer behaviour study is based on consumer
buying behaviour, with the customer playing the three distinct roles of user, payer and
buyer. Relationship marketing is an influential asset for customer behaviour analysis as it
has a keen interest in the re-discovery of the true meaning of marketing through the reaffirmation of the importance of the customer or buyer. A greater importance is also
placed on consumer retention, customer relationship management, personalization,
customization and one-to-one marketing. Social functions can be categorized into social
choice and welfare functions.
Understanding consumer behaviour is the key to success in the marketplace. Companies
are constantly looking at customer behavioural patterns to predict future trends. Among
the many tools is data analytics
As the twentieth century has come to a close and we have move into the third
millennium, we can see many developments and changes taking place around us with all
the industries and firms within each industry trying to keep pace with the changes and
diverse needs of the people. Though for decade together, marketers have regarded
customer as the king and evolved all activities to satisfy him or her, this concept is
gaining more momentum and importance today.

This can largely be attributed to the prevailing market situation. Not only has competition
become intense but over and above with the market being flooded with many me-too
products, the challenge before the marketer is to understand the diversity of consumer
behaviour and offer goods/services accordingly. Today the company image is built and
made known by its customers. Thus the success of the firm will be determined by how
effective it has been in meeting the diverse consumer needs and wants by treating each
customer as unique and offering products and services to suit his or her needs.
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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

More than a century ago, the father of our nation, Mahatma Gandhi, have made a
visionary and deep meaningful statement at Johannesburg, South Africa in 1890- A
CUSTOMER IS THE MOST IMPORTANT VISITOR ON OUR PREMISES. Though
this statement was not made in the marketing concept, there is a lot of wisdom and
insight into Mahatmas words.

2.2 DIVERSITY OF CONSUMER BEHAVIOUR


Traditionally the word customer was used to define people whom the organization dealt
with externally. Though the word customer is used as a single unit, purchases could be
made both by individuals and groups of people involved in the decision making process.
The term customer refers to the purchase of a product or service. They may or may not
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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

be the ultimate customer. Whereas the term customer refers to the end user of a product
or service. They may or may not be the customer. Thus, understanding of the term
customer and consumer is necessary especially in the event of the dramatic shifts that
have been witnessed at the market place in the 1990s. This is visible from the sharp
changes in demography, drastic variation in the lifestyle patterns of the consumers and
the revolution that has taken place in the field of communication technology. Marketers
are being exposed to a new generation of customers. These new generations of customers
have to be differentiated on the basis of the individual differences in consumer
expectation, preferences for more choice (options), not very brand loyal and even willing
to try the competing brands so as to obtain the perceived higher value satisfaction. From
the above discussion it is obvious, that marketers have to re-do the exercise of analyzing
the consumer behaviour. It would be difficult to classify the present generations of
customer by the conventional demographics variables. So marketers are engaged in
gauging the behaviour of the customers by trying to identify the sources, timing and
direction of the changes in the consumer behaviour and also the emerging new
competencies and perspective so as to enable them to respond to the changes in the most
effective manner. Thus the priority will be to develop a new paradigm to tackle the
emerging challenges at the market place.
To match the varying consumer taste and behaviour, marketers have also adopted
strategies like stressing on value pricing (high quality at a reasonable lower price) and
relationship marketing (servicing to add to customer delight which can in the long run
results in brand or store loyalty). They have also taken steps by moving away from the
traditional distribution channel to customize designed channels and now to direct
marketing (or filling directly to the consumers). This can be seen by the lot of glitter
shines on the shelves of exclusive and not so exclusive retail outlets around the country,
some in an attempt at imitating the giant super markets, departmental stores and places of
the affluent societies. This penetration has percolated deeper into other cities and smaller
towns right up to the rural habitats.

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2.3 NEED FOR STUDYING CONSUMER


BEHAVIOUR
Consumer behaviour can be said to be the study of how individuals make decisions on
how to spend their available resources (time, money, effort) on various consumptionrelated items. This simple definition of consumer behaviour tells marketers to resolve
every activity around the ultimate consumer and gauge their behaviour by specifically
focusing on:

Who buys the products or service?

How do they buy products or services?

How often do they buy them?

When do they buy them?

Why do they buy them? And

How often do they use them?

This questions will help in understanding better what factor influence the decision
making process of the consumers. The decision making process identifies the number of
people who are involved in this process and ascribes a role to them like the users,
decider, influencer, and buyer. It is believed that consumers or customers make purchase
decision on the basis of receipt of a small number of selectively chosen pieces of
information. Thus it will be very important to understand what and how much
information is required by the customer to help them to evaluate the goods and services
offerings. The involvement of the customer in the decision making process will vary with
the type of purchase involved like incase of complex product there will be high
involvement and so on. Thus it is very important to understand what customers feels will
help them to evaluate goods and services. The consumer decision making process goes
beyond the facts such as what features or the product design will be acceptable to
consumers, what benefits are they seeking from their products, what price will be suitable
etc.

Today consumer behaviour also includes the post purchase satisfaction or


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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

dissatisfaction behaviour. Because the post purchase behaviour will have repercussions
on the communication (word of mouth) they have with the firms prospective customers.
Usually there are two types of customers the personal consumer and organizational
consumer.
Personal consumer:
Right from the stimuli till the consumer response, there are many individual and
environment influencing the consumer purchase decisions.
Organizational consumer:
The type of buying situation will be different but the categorization in terms of low
involvement and high involvement purchases made by individual is similar.

The marketers look into the decision-making unit in both the cases i.e. personal purchases
as well as the industrial purchases. Then depending upon the role of the person who is
most likely to influence the decision they decide to more of the promotional efforts at
them.

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2.4 STUDY OF THE CONSUMER BEHAVIOUR


It has been aptly said that a field of consumer behaviour holds for various categories of
people such as consumers, marketers and students of marketing. All the firms have
started considering customers as the king or queen. Interestingly, eight years after
the liberalization of Indias economy, the market place is flooded with many new players
including the host of MNCs resulting in the availability of more number of brands in
every segment of the markets. On account of this the customer has started being choice
about what to buy. Thus all firms are becoming not only customer focused but are also
trying to build relationship between them. This is done by continuously updating
knowledge, information and understanding of the customers needs and expectation.
Awareness of such devotion from the firms has made customers to take more interest in
to their own consumption related decisions. They are keen to gain more knowledge about
taking various decisions related to products and the promotional influences that persuade
them to buy. Thus, the study of the consumer behaviour will unable them to become
better and wiser consumers.
Marketers have woken up to the reality that to exist in a competitive environment they
have to be more customers focused. On one hand, they (the firms) are facing a situation
of sustained liquidity crunch, followed by a rising rate of inflation along with the
increasing competition eating into their margins and sales. On the other side, marketers
have observed that the choice empowered cannot be taken for granted. This is particularly
true because of the rapidly rising consumer earnings, sharp drop in the savings rate
resulting in huge amount of disposable income to be lavished on customers products and
services. Simultaneously there are changes occurring in the personal, social and cultural
influences, with the leaps and bounds made in field of science and technology- making
the consumer more individualistic, conscious (about the product or services to fulfill their
needs) or choosy. So the study of consumer behaviour will help marketers to Asses the
consumers needs and wants, and make better strategic marketing decision.
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Having a better understanding of consumer behaviour will help them to become better
than their competitors. On understanding consume behaviour they will be able to predict
the consumer acceptance of their various informational and environmental cues and thus
plan their marketing programmes or strategies accordingly.
As students of marketing, one will be more concerned with the study of the consumer
behaviour. Such a study will help to gauge into the consumers mind and understand the
various consumption related aspects of individuals (consumers). As students of
marketing, understanding of consumer behaviour will make the study of marketing
management more interesting, understandable and increase awareness of its practical
implications.
Consumer behaviour has been referred to as all the psychological, social and physical
behaviour of all the potential consumers as they become aware, evaluate, purchase,
consume and tell others about products and services. Thus, understanding of consumer
behaviour will help them (students) to learn about the various internal and external
influences, which impel them to behave as they do.

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2.5 CONSUMER BEHAVIOR: TOOL FOR


MARKETING
The study of consumers helps firms and organizations improve their marketing strategies
by understanding issues such as how

The psychology of how consumers think, feel, reason, and select between different
alternatives (e.g., brands, products);

The psychology of how the consumer is influenced by his or her environment (e.g.,
culture, family, signs, media);

The behaviour of consumers while shopping or making other marketing decisions;

Limitations in consumer knowledge or information processing abilities influence


decisions and marketing outcome;

How consumer motivation and decision strategies differ between products that differ
in their level of importance or interest that they entail for the consumer; and

How marketers can adapt and improve their marketing campaigns and marketing
strategies to more effectively reach the consumer.

Understanding these issues helps us adapt our strategies by taking the consumer into
consideration. For example, by understanding that a number of different messages
compete for our potential customers attention, we learn that to be effective,
advertisements must usually be repeated extensively. We also learn that consumers will
sometimes be persuaded more by logical arguments, but at other times will be persuaded
more by emotional or symbolic appeals. By understanding the consumer, we will be able
to make a more informed decision as to which strategy to employ.

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One "official" definition of consumer behavior is "The study of individuals, groups, or


organizations and the processes they use to select, secure, use, and dispose of products,
services, experiences, or ideas to satisfy needs and the impacts that these processes have
on the consumer and society." Although it is not necessary to memorize this definition, it
brings up some useful points:

Behaviour occurs either for the individual, or in the context of a group (e.g., friends
influence what kinds of clothes a person wears) or an organization (people on the job
make decisions as to which products the firm should use).

Consumer behaviour involves the use and disposal of products as well as the study of
how they are purchased. Product use is often of great interest to the marketer, because
this may influence how a product is best positioned or how we can encourage
increased consumption. Since many environmental problems result from product
disposal (e.g., motor oil being sent into sewage systems to save the recycling fee, or
garbage piling up at landfills) this is also an area of interest.

Consumer behaviour involves services and ideas as well as tangible products.

The impact of consumer behaviour on society is also of relevance. For example,


aggressive marketing of high fat foods, or aggressive marketing of easy credit, may
have serious repercussions for the national health and economy.

There are four main applications of consumer behavior:

The most obvious is for marketing strategyi.e., for making better marketing
campaigns. For example, by understanding that consumers are more receptive to food
advertising when they are hungry, we learn to schedule snack advertisements late in
the afternoon. By understanding that new products are usually initially adopted by a
few consumers and only spread later, and then only gradually, to the rest of the
population, we learn that (1) companies that introduce new products must be well
financed so that they can stay afloat until their products become a commercial success
and (2) it is important to please initial customers, since they will in turn influence
many subsequent customers brand choices.
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A second application is public policy. In the 1980s, Accutane, a near miracle cure
for acne, was introduced. Unfortunately, Accutane resulted in severe birth defects if
taken by pregnant women. Although physicians were instructed to warn their female
patients of this, a number still became pregnant while taking the drug. To get
consumers attention, the Federal Drug Administration (FDA) took the step of
requiring that very graphic pictures of deformed babies be shown on the medicine
containers.

Social marketing involves getting ideas across to consumers rather than selling
something. Marty Fishbein, a marketing professor, went on sabbatical to work for the
Centres for Disease Control trying to reduce the incidence of transmission of diseases
through illegal drug use. The best solution, obviously, would be if we could get illegal
drug users to stop. This, however, was deemed to be infeasible. It was also
determined that the practice of sharing needles was too ingrained in the drug culture
to be stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbein
created a campaign that encouraged the cleaning of needles in bleach before sharing
them, a goal that was believed to be more realistic.

As a final benefit, studying consumer behaviour should make us better consumers.


Common sense suggests, for example, that if you buy a 64 liquid ounce bottle of
laundry detergent, you should pay less per ounce than if you bought two 32 ounce
bottles. In practice, however, you often pay a size premium by buying the larger
quantity. In other words, in this case, knowing this fact will sensitize you to the need
to check the unit cost labels to determine if you are really getting a bargain.

There are several units in the market that can be analyzed. Our main thrust in this course
is the consumer. However, we will also need to analyze our own firms strengths and
weaknesses and those of competing firms. Suppose, for example, that we make a product
aimed at older consumers, a growing segment. A competing firm that targets babies, a
shrinking market, is likely to consider repositioning toward our market. To assess a
competing firms potential threat, we need to examine its assets (e.g., technology, patents,
market knowledge, awareness of its brands) against pressures it faces from the market.
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Finally, we need to assess conditions (the marketing environment). For example, although
we may have developed a product that offers great appeal for consumers, a recession may
cut demand dramatically.

2.6 PERCEPTION
Background: Our perception is an approximation of reality. Our brain attempts to make
sense out of the stimuli to which we are exposed. This works well, for example, when we
"see" a friend three hundred feet away at his or her correct height; however, our
perception is sometimes "off"for example, certain shapes of ice cream containers look
like they contain more than rectangular ones with the same volume.
Factors in perception Several sequential factors influence our perception. Exposure
involves the extent to which we encounter a stimulus. For example, we are exposed to
numerous commercial messages while driving on the freeway: bill boards, radio
advertisements, bumper-stickers on cars, and signs and banners placed at shopping malls
that we pass. Most of this exposure is randomwe dont plan to seek it out. However, if
we are shopping for a car, we may deliberately seek out advertisements and "tune in"
when dealer advertisements come on the radio.
Exposure is not enough to significantly impact the individualat least not based on a
single trial (certain advertisements, or commercial exposures such as the "Swoosh" logo,
are based on extensive repetition rather than much conscious attention). In order for
stimuli to be consciously processed, attention is needed. Attention is actually a matter of
degreeour attention may be quite high when we read directions for getting an income
tax refund, but low when commercials come on during a television program. Note,
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however, that even when attention is low, it may be instantly escalatedfor example, if
an advertisement for a product in which we are interested comes on.
Interpretation involves making sense out of the stimulus. For example, when we see a
red can, we may categorize it as a Coke.
Webers Law suggests that consumers ability to detect changes in stimulus intensity
appear to be strongly related to the intensity of that stimulus to begin with. That is, if you
hold an object weighing one pound in your hand, you are likely to notice it when that
weight is doubled to two pounds. However, if you are holding twenty pounds, you are
unlikely to detect the addition of one pounda change that you easily detected when the
initial weight was one pound. You may be able to eliminate one ounce from a ten ounce
container, but you cannot as easily get away with reducing a three ounce container to two.
Several factors influence the extent to which stimuli will be noticed. One obvious issue is
relevance. Consumers, when they have a choice, are also more likely to attend to pleasant
stimuli (but when the consumer cant escape, very unpleasant stimuli are also likely to get
attentionthus, many very irritating advertisements are remarkably effective).
Surprising stimuli are likely to get more attentionsurvival instinct requires us to give
more attention to something unknown that may require action. A greater contrast
(difference between the stimulus and its surroundings) as well as greater prominence
(e.g., greater size, center placement) also tend to increase likelihood of processing.

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CHAPTER 3

3.1 BEVERAGE AN INTRODUCTION


3.1.1 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
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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
3.1.2 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
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.

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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 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 fibre 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"

5. Hot beverages
Hot beverages include coffee-based beverages and tea-based beverages. They are
sometimes drunk chilled.
Coffee-based beverages
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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

Cappuccino

Coffee

Espresso

Caf au lait

Frappe

Flavoured coffee (mocha etc.)

Latte

Hot chocolate

Hot cider

Mulled cider

Tea-based beverages

Flavoured teas (chai etc.)

Green tea

Pearl milk tea

Tea

Herbal teas

Yerba Mate

Roasted grain beverages

6. Other

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Some substances may either be called food or drink, or 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

3.2 OVERVIEW OF THE INDUSTRY


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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

The beverage market is worth $55 billion worldwide. 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, flavour innovation, ingredient innovation and specific age groups. These are
the factors that will shape the future of the beverage industry.
Todays 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 flavours, and consumers are beginning to see that there is
more flavour 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. Its
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 flavoured drink to quench their thirst.

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3.3 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 producing units
have also come up, catering to domestic and international markets.
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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

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.

3.4 SOFTDRINK INDUSTRY


It all began in 1886, when a tree legged brass kettle in Hohn Styth pembertons backyard
in Atlanta was brewing the first P of marketing legend Unaware the pharmacist has given
birth to a caramel colored syrup, which is now the chief ingredient of the worlds favorite
drink. The syrup combined with carbonated the soft drink market. It is estimated that this
drink is served more than one thousand million times in a day. Equally oblivious to the
historic value of his actions was Frank Ix. Robinson, his partner and book keeper.
Pemberton & Robinson laid the first foundation of this beverage when an average nine
drinks per day to begin with, upping volumes as sales grew. In 1894, this beverage got
into bottle, courtesy a candy merchant from Mississippi. By the 1950s Colas was a daily
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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

consumption item, stored in house hold fridges. Soon were born other non- cola variants
of this product like orange & Lemon. Now, the soft drink industry has been dominated by
three major player

The New York based Pepsi co. Inc.

The Atlanta based coca cola co.

The United Kingdom based Cadbury Schweppes.

Throughout the glove these major players have been battling it. Out for a bigger chunk of
the ever-growing cold drink market, now this battle has begun in India too. India is now
the part of cold drink war. Gone are days of Ramesh Chauhan, Indias one time cola king
and his bouts of pistol shooting. Expect now to hear the boon of cannons when the Coca
Cola & Pepsi co. battles it out for, as the Jordon goes a bigger share of throat.
Over local competition, the two American Cola giants have cleared up the arena and are
packing all their power behind building the Indian franchisee of their globe girdling
brands. The huge amount invested in fracture has never been seen before. Both players
seen an enormous potential in his country where swigging a carbonated beverage is still
considered a treat, virtually a luxury. Consequently, by world standards Indias per capita
consumption of cold drinks as going by survey results is rock bottom, less than over
Neighbours Pakistan & Bangladesh, where it is four times as much.
Behind the hype, in an effort invisible to consumer Pepsi pumps in Rs 3000 crores (1994)
to add muscle to its infrastructure in bottling and distribution. This is apart from money
that companys franchised bottles spend in upgrading their plants all this has contributed
to substantial gains in the market. In colas, Pepsi is already market leader and in certain
cities like Banaras, Pepsi outlets are on one side & all the other colas put together on the
other. While coke executive scruff at Pepsis claims as well as targets, industry observers
are of the view that Pepsi has definitely stolen a march over its competitor coke.
Apart from numbers, Pepsi has made qualitative gains. The foremost is its image. This
image turnaround is no small achievements, considering that since it was established in

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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

1989, taking the hardship route prior to liberalization and weighed down by export
commitments.
Now, at present as there are three major players coke, Pepsi and Cadbury and there is stiff
competition between first two, both Pepsi and coke have started, sponsoring local events
and staging frequent consumer promotion campaigns. As the mega event of this century
has started, and the marketers are using this event world cup football, cricket events and
many more other events.
Like Pepsi, coke is picking up equity in its bottles to guarantee their financial support;
one side coke is trying to increase its popularity through.
Eat Food, enjoy Food. Drink only coca cola. Eat cricket, sleep cricket. Drink only coca
cola. Eat movies, sleep movies. Drink only coca cola.
On the other side of coin Pepsi has introduced AMITABH BACHHAN for capturing the
lemon market through MIRINDA Lemon with zor ka jhatka dhere se lage.
But no doubt that UK based Cadbury is also recognizing its presence. So there is a real
crush in the soft drink market. with launch of the carbonated organize drink Crush, few
year ago in Banaras ., the first in a series of a launches , Cadbury Schweppes Beverage
India (CSBI)has planned:- The world third largest soft drink marketers all over the
country. Cadbury Schweppes is hoping that crush is going well and will not suffer the
same fate as the Rs. 175 crore Cadbury Indias apple drink Apella.
As orange drinks are the smallest of non-cola categories that is Rs. 1100 crore markets
with 10% market share and cola heaving 50% is followed by Lemon segment with 25%.
The success of soft drink industry depends upon 4 major factors viz.

Availability

Visibility

Cooling

Range

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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

Availability
Availability means the presence of a particular brand at any outlet. If a product is now
available at any outlet and the competitor brand is available, the consumer will go for it
because generally the consumption of any soft drink is an impulse decision and not
predetermined one.
Visibility
Visibility is the presence felt, if any outlet has a particular brand of soft drink say- Pepsi
cola and this brand is not displayed in the outlet, then its availability is of no use. The soft
drink must be shown off properly and attractively so as to catch the attention of the
consumer immediately Pepsi achieves visibility by providing glow signboards, hoarding,
calendars etc. to the outlets. It also includes various stands to display Pepsi and other
flavors of the company.
Cooling
As the soft drinks are consumed chilled so cooling them plays a vital role in boosting up
the sales. The brand, which is available chilled, gets more sales then the one which is not,
even if it is more preferred one.

Range
This is the last but not the least factor, which affects the sale of the products of a
particular company. Range availability means the availability of all flavors in all sizes.

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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

3.5 GROWTH OF SOFT DRINK MARKET


3.5.1 SOFT DRINKS
Carbonated drinks are dominated by artificial flavours 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 flavours and sweetening agents as no natural juice is used.
3.5.2 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.

National Council For Applied Economic Research 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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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

3.5.3 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.
FANTA: ghoonth bhar shararat kar le!!!

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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

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 colour, tempting taste and tingling bubbles that not just uplifts
feelings but also helps free spirit thus encouraging one to indulge in the moment.

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 flavouring soft drinks in the country. Dive into the zingy refreshment of limca
and walk away a new person.
SPIRITE: spirite bhujaye pyaas baki sab bakwaas!!!

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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

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.

THUMS UP: taste the thunder!!!

Strong cola taste, exciting personality.


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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

Thums up is a leading carbonated soft drink and most trusted brand in India. Originally
introduced in 1977, ThumsUp 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.
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.
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
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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

1890s 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)

3.6 RECENT ISSUES


3.6.1 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 fourth largest energy
drink in the 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. 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
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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

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.

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


Australia-based "Aromas," one of the leading coffee chain shops, launched its first caf
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 ensure freshness and fullness of flavour." 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.
3.6.3 Pepsi's Slice kicks off the new season with 'Aamsutra'.
PepsiCo's popular mango juice drink brand- Slice kicks off the 2009 season with its 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
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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

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. The company has now opted for a 360
multimedia campaigns involving digital, print, radio, impact outdoors and sampling in
core markets.
3.6.4 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."
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 taste. It is without any doubt that only an
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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

Indian company can understand what real nimbu pani tastes like and what the Indian
consumer wants in a packaged offering," Chauhan added.
Further, 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.

3.6.5 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 DirectorMarketing, 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 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.

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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

3.6.6 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. 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. The company claims that packaged nimbu paani will
have tremendous growth potential, higher than other packaged drinks mainly because of a
major shift in consumer behaviour. Today, the beverage consumer is looking for hygiene,
convenience, refreshing taste, affordability and year-round availability.

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CHAPTER 4

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4.1 TWO RIVALS

The history, the romance, the struggle, the courage, the endurance, the confidence and the
competition characterizes the presence of an industry which no one in their wildest
imagination had dreamt would last so long. Beginning in 1886, when a tumultuous,
inventive, clamorous and neurotic new America got a taste of a nerve tonic invented by
an obsessive chemist in the pursuit of the perfect medicine, to late 1890s when a worthy
adversary was born, and to the present; change, aggression and controversy have been the
order of the day. That nerve tonic was Coca-Cola, the obsessive chemist John
Pemberton and the worthy adversary Pepsi and the adversity has not decreased an iota
even after 100 years. Indian Soft Drinks Market 1970s and early 80sthe entry and
exit of Coke India has proved to be perhaps the toughest battle ground for the Cola
giants. Coca-Cola was the 1st international soft drinks brand to enter India in early
1970s. Indian market was dominated by domestic brands, with Limca being the largest
selling brand. Cola was the largest selling flavour with market share of 40%, Lemon
drinks 31% and orange drinks only 19%. Up till 1977, Coca-cola was the leading soft
drink brand in India. But due to norms set by the Foreign Exchange Regulation Act
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(FERA), Coca-Cola left India and did not return till 1993 after a 16 year absence from the
Indian beverage market. FERA needed Coca-Cola to reveal its secret concentrate formula
as well as reduce its equity stake which was not acceptable. A pure drink, Delhi launched
Campa-Cola, to take advantage of Cokes exit and by the end of 70s, was the only Cola
drink in the Indian market. In 1980, Parle, another major Indian player launched
ThumsUp, the drink which till date is most popular soft-drink in India. Pure Drinks
strongly objected to ThumsUp being called a soft drink as it felt its taste is too strong.
For over a decade, Parle led the Indian soft-drinks market, with its market share reaching
a peak of 70% in1990. Late 80s and early 90s Pepsis struggle to enter India
Pepsi saw the exit of Coke as a God send opportunity to capture then estimated 900 crore
market of India. India was then a highly regulated market with International trade
constituting only 6% of GDP in 1985. Foreign trade was subject to import tariffs, export
tariffs and quantitative restrictions. Foreign direct investment (FDI) was restricted by
barriers like upper limit equity participation, restrictions on technology transfer, export
obligations and government approvals. Any foreign investment had a lot of political
sensitivity to it. By the time PepsiCo began its negotiations, the upper cap for equity
holding in Indian companies was 40%. PepsiCo realized itll have to be creative to enter
the Indian markets.
Attempt 1: In May 1985, PepsiCo joined hands with the RPG group to form Agro
Product Export Limited. It planned to import Cola concentrate and sell soft-drinks under
the Pepsi label and in return offered to export Juice Concentrate from Punjab. The
government rejected the proposal due to its using a foreign name and importing the
concentrate.
Attempt 2: Pepsi decided to play the Punjab Card by promising to invest $15 million in
Punjab, establish an Agro Research centre (costing Rs 1.55 crores), a potato and grain
based processing unit (costing Rs 8 crores) and a fruit and vegetable processing unit
(costing Rs 5 crores). Benefits and proposal included better market for rice, wheat and
fruits in Punjab, creation of 25000 jobs in Punjab and 25000 more in other areas. In 1988,
government agreed. PepsiCo entered as Lehar Pepsi and by 1991, it was clear that most
of its promises were just on paper. The company did improve the productivity in India,
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introduced farmers to new technology, established agriculture research centres in Jallowal


and Channo (in Punjab) and Nelamangla in Karnataka and invested more capital than
promised (by the year 2000, total investment was Rs 18 billion), but the picture on many
other aspects was gloomy. The planned operations in Punjab were delayed and as a result,
local farmers had to bear a combined loss of Rs. 2.5 Million. Pepsi paid only 0.75 Rs/Kg
of Tomato compared to open market price of Rs 2/Kg. Employment was provided to only
783 people as compared to 50,000 promised (although company claimed it to be 26,000
due to direct and indirect operations). It began exporting tea, rice, shrimps, and glass
bottles, leather products as against fruits and vegetable products. There was an even a
show-cause notice to Pepsi by the ministry of commerce. Luckily for PepsiCo, in 1991,
the government of India liberated the economy on grounds of severe foreign exchange
crisis and Pepsi was freed from all the commitments it had made during entry.
Re-entry of Coca-Cola in 1993
On the 26th of October 1993, Coca-Cola re-entered the Indian market having acquired
some of the leading Indian soft drink brands from Parle, namely Thums-Up, Maaza,
Limca, Gold spot & Citra. These brands joined Cokes portfolio of international brands
i.e. Coca-Cola, Sprite, Fanta, Schweppes as Coca-Cola India took control of the top soft
drink brands in India from the very beginning. From 1993 to 2003, company invested US
$ 1 billion in India.
The beginning of Cola War
For the Cricket World Cup 1996, Pepsi was not the official sponsor of the tournament,
Coke was. But Pepsi had a whole pool of best players roped in as brand ambassadors
from the sub continent and abroad. The ad campaign of Nothing Official About it
rocked the country and despite Coke being the official sponsor, it was Pepsi which
hogged the publicity.
In 1998, with the release of blockbuster movie Kuch Kuch Hota Hai, Pepsi took out
another ace from its sleeve, featuring Shahrukh, Rani and Kajol in its ad. The punch line
was Yeh Dil Maange More which was an iconic line and struck a chord amongst the
people.
50

CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

Coca-Cola countered by spoofing the ad, using Sprite, to hilarious effect. Pepsi responded
with a spoof of its own, starring Azhar and Jadeja hitting on the Coke line of Eat
Cricket, Sleep Cricket, Drink Only Coca Cola with the punch line of More More
Cricket, More Pepsi. Coke again hit back, this time with Thumbs Up ad. They portrayed
the cricketers as monkeys and ended the ad with Dont be a bunder (monkey) Taste the
Thunder! Situation turned ugly with Pepsi going to court and finally ended with Coke
withdrawing the ad.
The Cola wars went on full-fledged till 2003, when a pesticide controversy forced Coke
and Pepsi to fight on the same side in so called India's New Cola Wars.

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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

4.2 PEPSICO

PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab
government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited.
This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign
brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994.
Others claim that firstly Pepsi was banned from import in India, in 1970, for having
refused to release the list of its ingredients and in 1993, the ban was lifted, with Pepsi
arriving on the market shortly afterwards. These controversies are a reminder of "India's
sometimes acrimonious relationship with huge multinational companies." Indeed, some
argue that PepsiCo and The Coca-Cola Company have "been major targets in part
because they are well-known foreign companies that draw plenty of attention." In 2003,
the Centre for Science and Environment (CSE), a non-governmental organization in New
Delhi, said aerated waters produced by soft drinks manufacturers in India, including
multinational giants PepsiCo and The Coca-Cola Company, contained toxins, including
lindane, DDT, malathion and chlorpyrifos pesticides that can contribute to cancer, a
breakdown of the immune system and cause birth defects. Tested products included
Coke, Pepsi, 7 Up, Miranda, Fanta, Thumps Up, Limca, and Sprite. CSE found that the
Indian-produced Pepsi's soft drink products had 36 times the level of pesticide residues
permitted under European Union regulations; Coca Cola's 30 times. CSE said it had
52

CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

tested the same products in the US and found no such residues. However, this was the
European standard for water, not for other drinks. No law bans the presence of pesticides
in drinks in India. The Coca-Cola Company and PepsiCo angrily denied allegations that
their products manufactured in India contained toxin levels far above the norms permitted
in the developed world. But an Indian parliamentary committee, in 2004, backed up
CSE's findings and a government-appointed committee, is now trying to develop the
world's first pesticides standards for soft drinks. Coke and PepsiCo opposed the move,
arguing that lab tests aren't reliable enough to detect minute traces of pesticides in
complex drinks. As of 2005, The Coca-Cola Company and PepsiCo together hold 95%
market share of soft-drink sales in India. PepsiCo has also been accused by the
Puthussery Panchayat in the Palakkad district in Kerala, India, of practicing "water
piracy" due to its role in exploitation of ground water resources resulting in scarcity of
drinking water for the Panchayat residents, who have been pressuring the government to
close down the PepsiCo unit in the village. In 2006, the CSE again found that soda
drinks, including both Pepsi and Coca-Cola, had high levels of pesticides in their drinks.
Both PepsiCo and The Coca-Cola Company maintain that their drinks are safe for
consumption and have published newspaper advertisements that say pesticide levels in
their products are less than those in other foods such as tea, fruit and dairy products. In
the Indian state of Kerala, sale and production of Pepsi-Cola, along with other soft drinks,
was banned by the state government in 2006, but this was reversed by the Kerala High
Court merely a month later. Five other Indian states have announced partial bans on the
drinks in schools, colleges and hospitals
Product Name / Package

200ml

300ml

500ml

1Ltr

1.5Ltr

2Ltr

Pepsi

Yes

Yes

Yes

No

No

Yes

Miranda

Yes

Yes

Yes

No

No

Yes

7-UP

Yes

Yes

Yes

No

No

Yes

Slice

Yes

Yes

Yes

No

No

Yes

Mountain Dew

Yes

Yes

Yes

No

No

Yes

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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

Aquafina (Mineral Water)

Yes

Yes

Yes

No

No

Yes

4.2.1 BRAND FACTS


PepsiCo nourishes consumers with a range of products from tasty treats to healthy eats
that deliver enjoyment, nutrition, convenience as well as affordability
The group has built an expansive beverage and foods business. To support its operations,
PepsiCo has 42 bottling plants in India, of which 13 are company owned and 29 are
franchisee owned. In addition to this, PepsiCos Frito Lay division has 3 state-of-the-art
plants. PepsiCos business is based on its sustainability vision of making tomorrow better
than today. PepsiCos commitment to living by this vision every day is visible in its
contribution to the country, consumers and farmers.

PepsiCo Indias expensive portfolio includes iconic refreshment beverages Pepsi, 7 UP,
Nimbooz, Miranda and Mountain Dew, in addition to low calorie options such as Diet
Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic
sports drinks - Gatorade, Tropicana100% fruit juices, and juice based. Drinks Tropicana
Nectars, Tropicana Twister and Slice. Local brands Lehar Evervess Soda, Dukes
Lemonade and Mangola add to the diverse range of brands. PepsiCo, which ranks among
the worlds five largest food and beverage companies with 16 brands, and its partners
have invested more than US$ 700 million in India - building businesses, which today
provide direct or indirect employment to more than 60,000 people. Since Pepsis entry
into the Indian market in 1989, several brands from its portfolio have become established
category leaders. Brand Pepsi is now the 2nd biggest brand in the country. PepsiCos
portfolio of beverage brands in India includes the flagship cola brand Pepsi; Diet Pepsi;
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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

two flavours of Miranda Orange and Lemon; 7UP; Mountain Dew; packaged drinking
water - Aquafina; variants of the fruit drink brand Slice; the 100 per cent fruit juice brand
Tropicana in several variants and the worlds leading sports drink Gatorade.
4.2.2 BRAND HISTORY
Pepsi is a hundred year old brand loved by over 200 million people worldwide. The
largest single selling soft drink brand in India is the ubiquitous'socialiser'at every
occasion.

Youngistan loves it. 200 million people worldwide love it. But what has made Pepsi
the single largest selling soft drink brand in India is actually a formula concocted a
century ago in a far away continent.

1886, United States of America. Caleb Brad man, the man with a plan, got on to
formulate a blockbuster digestive drink and decided to call it Brads drink. It was this
doctors potion that was to become Pepsi Cola in 1898, and eventually, Pepsi in 1903.

Pepsi has always played on the front foot and since its inception has come out with
revolutionary concepts like Diet, 2L bottles, recyclable plastic cola bottles and the
enviable My Can.

4.2.3 BRAND ADVANTAGE

Pepsi has become a friend to the youth and has led many youth cultures. Youngsters
over the generations have grown up with Pepsi and share an emotional connect with
it, unlike any other cola brand. Be it parties, hangouts, or just another day at home, a
day is never complete without the fizz of Pepsi!

Pepsi, Cricket and Bollywood have been joined at the hip since the beginning. Shah
Rukh Khan, Sachin Tendulkar, Saif Ali Khan, Amitabh Bachchan, Kareena Kapoor,
Priyanka Chopra, Virender Sehwag, M. S. Dhoni, John Abraham, Ranbir Kapoor and
Deepika Padukone are a few celebrities who will go any length for a chilled Pepsi.

The Pepsi My Can is undoubtedly the most popular cola pack of all times. It is not
just a pack but a style statement for todays youth.
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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

4.3 COCA-COLA
The Coca-Cola Company exists to benefit & refresh every one it touches. Founded in
1886, company is the worlds leading manufacturers, marketer, & distributor of non
alcoholic beverages concentrates & syrups, used to produce nearly 400 beverages brands.
Its corporate head Quarters are in Atlanta, with local operation in over 200 countries
around the worlds most widely recognised brands. It is the single global competitor of
PepsiCo. After a 16 years absence, Coca-Cola returned to India in 1993. the companys
presence in India was cemented in November that year in a deal that gave drink CocaCola ownership of the nations top soft brands and bottling network. Coca-cola India has
made significant investments to build and continually improve its business in India,
including new production facilities, waste water treatment plants, distribution system and
marketing equipment. During the past decade, the Coca-cola system has invented mote
than US$ 1 billion in India. Leading Indian brands Thums Up, Limca, Maaza, Citra and
Gold Spot join the companys international family of brands including Coca-cola, diet
coke, Sprite and Fanta, plus the Schweppes product range.
4.3.1 BRAND AVAILABLE IN THE MARKET
Product Name / Package

200ml

300ml

500ml

Coca-Cola

Yes

Yes

Yes

No

No

Yes

Thums-up

Yes

Yes

Yes

No

No

Yes

Sprite

Yes

Yes

Yes

No

No

Yes

Limca

Yes

Yes

Yes

No

No

Yes

Maaza

Yes

Yes

Yes

No

No

Yes

Kinley (Mineral Water)

No

No

Yes

Yes

No

No

Kinley Soda

No

No

Yes

Yes

No

No

56

1Ltr

1.5Ltr

2Ltr

CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

Coke

No

No

Yes

Yes

No

No

4.3.2 BRAND FACTS


1.

The worlds largest spherical coca-cola sign is in Nagoya, Japan a top the dial
Nagoya building in front of the Nagoya railway station. The sing is a double sphere
constructed from more then 46 tone of steel, more 940meter of neon tubing, and
more then, 879 light bulbs. The outer shape features the coca-cola logo and contour
bottle, while the inner sphere portrays a comic scene with twinkling planets and
stars.

2.

One of the worlds largest signs for coca-cola is located on a hill called
ELHACHA in America, Chile. It is 400 feet wide and 131 feet high and is made
from 70,000, 26 ounce bottles.

3.

The first out door paint sign advertising coca-cola still exists. It was painted in
1894 in Cartersville, Georgia.

4.

Coca-cola is one of the worlds most recognizable trademarks recognized in


countries that account for 98 percent of the worlds population.

5.

If all the coca-cola ever produced were in 8- ounce bottles. And these bottles were
distributed to each person in the world. There would be 678 bottles or over 42
gallons for each person.

6.

If all the coca-cola ever produced were in 8 ounce bottles, placed side by side and
end to end to from a lane highway, it would wrap around the earth 82 times.

7.

If all the coca-cola ever produced were flowing over Niagara fall at its normal rate
of 105 million gallons per second instead of water, the falls would flow for about a
day and a half 38 hours and 46 minutes.

8.

The largest representation of the worlds best known package 100 foot tall glass
contour bottle is located at world of coca-cola, LAS VEGAS

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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

4.4 STRATEGIES ADOPTED BY COKE AND PEPSI


4.4.1 PROCESS
Pepsi: Despite being a global brand, Pepsi has built its success on meeting the Indian
consumers needs, particularly in terms of making the brand synchronize with localized
events and traditions. Instead of harping on its global lineage, ergo, it tries to plug into
ethnic festivals, use the vernacular indifferent part of the country, and blend into the local
fabric. Pepsi is using both national campaigns-such as the Drink Pepsi, Get Stuff scheme,
which offers large discounts on other products to Pepsi-buyers as well as local.
The Coke Copy: Instead of creating a bond with the customers through small but highimpact events, Coca-Cola chose to associate itself with national and international mega
events like the World Cup Cricket, 1996, and world cup football 1998. But now coke is
also entering into local actions. Coke is also trying to make their brand synchronize with
localized events traditions and festivals. Coca-Cola new tag line in this advertisement is
Real shopping, real refresher. In this way Coke is copy Pepsi.
4.4.2 EMPOWERMENT
The Pepsi Process: One of the strongest weapons in Pepsis armoury is the flexibility it
has empowered its people with. Every manager and salesperson has the authority to take
whatever steps he, or she, feels will make consumers aware of the brand and increase its
consumption.
The Coke Copy: Flexibility is the weapon that Coca-Cola, fettered as it is by the need
for approvals from Atlanta for almost everything. In the past, this has shown up in its
stubborn insistence on junking the franchisee network it had acquired from Parle; in its
dependence on its own feedback mechanism over that of its bottlers; and on its
headquarters-led approach.

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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

4.4.3 PRICE
The Pepsi process: Pepsi has consistently wielded its pricing strategy as in invitation to
sample, aiming to turn trial into addiction. It launched the 500 ml bottle in 1994 at Rs. 8
versus Thumps Ups Rs. 9, in April, 1996, its 1.5 litres bottle followed Coke into the
marketplace at Rs.30 Rs 5 less than Cokes .But it couldnt continue the lower price
positioning for long.
The Coke Copy: Initially, coke carbon-copied the strategy by introducing its 330ml cans
in January 1996, at an invitation price of Rs. 15 before raising it to Rs. 18. By this time, it
had realized that the Coca-Cola brand did not hold enough attraction for customers to
fork out a premium. The 200ml Coke, launched so far in parts of eastern, western, and
northern India, is priced at Rs. 5, lowering the entry-barriers. To, really drive the market,
as Coke wants to, you must go down to Rs. 3.

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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

CHAPTER 5

5.1 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


60

CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

Objective of the study:

To understand theoretical aspect of consumer habits and behaviour

To study strategies played by two major rivals i.e. Pepsi and Coke.

To determine consumer perception towards different soft drinks in Indian Consumer


Soft Drink market, with the help of primary research

5.1.1 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

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

61

CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

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.

5.1.2 SAMPLING TECHNIQUE USED


This research has used convenience sampling technique.
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.

5.1.3 SELECTION OF SAMPLE SIZE


For the study, a sample size of 100 has been taken into consideration.

5.1.4 HYPOTHESIS

MOST PREFERRED SOFTDRINK BY CONSUMER

5.1.5 PRIMARY DATA


Questionnaire: Primary data was collected by preparing questionnaire and the people
were randomly being requested to fill them.

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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

5.1.6 STATISTICAL TOOLS USED


The main statistical tools used for the collection and analyses of data in this project are:

Questionnaire

Bar diagrams

5.1.7 LIMITATIONS

The study was confined to some areas of Mumbai only.

Time and cost constraints were also there.

Interaction with the respondents was also limited due to their busy work.

There may be a chance that the respondents might be making assumptions while
filling the questionnaire

Chances of some biasness could not be eliminated.

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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

5.1.8 ANALYSIS AND INTERPRETATION


1. Initial screening: Sex demographics
Particulars

No. of Respondents

Percentage

Male

52

63%

Female

30

37%

Total

82

100%

64

CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

ANALYSIS:
From the survey it was found that amongst 82 respondents

63% of the respondents were male.


37% of the respondent were female

2. Which of the following do you prefer to drink?


Particulars

No. of Respondents

Percentage

Soft Drinks

65

79%

Juices

14

17%

Energy drink

4%

Total

82

100%

ANALYSIS:
From the survey it was found that amongst 82 respondents (only those
respondents were selected who preferred
65 to drink soft drink)
a) 79% of the respondents prefer Soft Drinks to drink.
b) 17% of the respondent prefer to drink Juices
c) 4% respondent prefer to drink energy drinks

CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

3. Soft drinks preferred respondents demographics.


Particulars

No. of Respondents

Percentage

Male

60

73%

Female

22

27%

Total

82

100%

ANALYSIS:
From the survey it was found that amongst 82 respondents

73% of the respondents were male.


66
27% of the respondent were female

CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

4. When do you prefer drinking soft drinks?


Particulars

No. of Respondents

Percentage

Before meal

12

15

During meal

20

24

When you are thirsty

40

49

Others

10

12

Total

82

100%

ANALYSIS:
From the survey it was found that amongst 82 respondents

15% respondents prefer drinking soft drinks before meal

24% respondents prefer drinking during meal

49% respondents prefer when they are thirsty.

And rest 12% respondents have other reasons.

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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

5. Frequency of consumption of soft drink in a week.


Particulars

No. of Respondents

Percentage

Daily

60

73%

2-6 times

12

15%

Above 7

10

12%

Total

82

100%

ANALYSIS:
From the survey it was found that amongst 82 respondents.
a) 73% of the respondents consume Soft Drinks daily.
b) 15% of the respondents consume 68
Soft Drinks 2-6 times.
c) 12% of the respondents consume Soft Drinks more than 7 times.

CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

6. Which of the soft drinks do you prefer most?

Particulars
Thumps up
Limca
Fanta/Miranda
Sprite/7 UP
Coke
Pepsi
Others
Total

No. of Respondents
17
8
5
16
16
10
10
82

69

Percentage
21
10
6
19
20
12
12
100%

CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

ANALYSIS:
From the survey it was found that amongst 82 respondents.

21% of the respondents consume Thumps up.

10% of the respondents consume Limca.

6% of the respondents consume Fanta/ Mirinda.

19%respondents consume Sprite/7Up

20% respondents consume Coke

12 % respondents consume Pepsi

Other 12% prefer other soft drinks.


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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

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


Particulars

No. of Respondents

Percentage

Feeling Thirsty

18

22%

Parties / Celebrations

47

57%

Without any reason

17

21%

Total

82

100%

ANALYSIS:
From the survey it was found that amongst 82 respondents.
a) 22% of the respondents consume Soft Drinks when they feel thirsty.
b) 57% of the respondents consume Soft Drinks at the time of celebrations.
c) 21% of the respondents consume Soft Drinks without any reason.
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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

8. What induces you to buy Soft Drinks?


Particulars

No. of Respondents

Percentage

Advertising

12

15

Influence (pressure by
peers)

18

22

Status symbol

Taste

46

56

Total

82

100%

ANALYSIS:
From the survey it was found that amongst 82 respondents.
a) 15% of the respondents consume soft drinks because of Advertising.
b) 22% of the respondents consume soft drinks because of influence by peers.
c) 7% of the respondents consider it as status symbol.
d) 56% of the respondents consume soft drinks because of its taste.
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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

9. How do you view Soft drinks?


Particulars

No. of Respondents

Percentage

As a health drink

As impressive drink

21

26

As a status symbol

As an aid to put off thirst

55

67

Total

82

100%

ANALYSIS:
From the survey it was found that amongst 82 respondents.
a) 3% of the respondents view Soft Drinks as a health drink.
b) 26% of the respondents view Soft Drinks as a impressive drink
c) 4% of the respondents view Soft Drinks as a status symbol.
d) 67% of the respondents view Soft Drinks as an aid to put off thirst.
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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

10. Do advertisements affect your purchases?


Particulars

No. of Respondents

Percentage

No

50

61%

Yes

32

39%

Total

82

100%

ANALYSIS:
From the survey it was found that amongst 82 respondents.

39% of the respondents think that advertisements affect their purchases.

61% of the respondents think that advertisements do not affect their


purchases.

11. Do you take the same drink every time?

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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

Particulars

No. of respondents

Percentage %

Yes

47

57%

No

35

43%

Total

82

100%

ANALYSIS:
From the survey it was found that amongst 82 respondents.

57% respondents consume the same drink every time.

43% respondents do not consume the same drink every time.

5.1.8 RECOMMENDATIONS AND SUGGESTIONS:


Soft drinks are an impulse product. Availability is a major factor, which makes the
consumer buy a soft drink. Soft drinks should be made available more readily than
present.
75

CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

Innovations increase sales of company.


The companies should conduct studies to get to know about consumer habits.
It is seen In India, that people prefer having their drinks with or after food. Companies
could have commercials which show people enjoying their drink with a good meal, so
that consumers associate drinking soft drinks while having food.

Companies should try to educate the consumer about the health related subject. For e.g.:a) Limca is recommended to patients by doctors.
b) Cola drinks are known to be very fattening ,

Companies should try to build high brand equity. This provides a number of advantages
to the company
a) The company enjoys reduced marketing costs because of high level of consumer
brand awareness and loyalty.
b) The company will have more trade leverage in bargaining with distributors and
retailers since the customer expects them to carry the brand.
c) The company can change a higher price than its competitors because the brand has

higher perceived quality.

The companies should go in for diversification


Once the brand is known, it is easier to sell more of its products. For e.g. Coca-Cola
clothes have sold about $100 million worth of clothes and accessories. This would
increase revenues of the company.
The companies should not have competitor myopia. Pepsi and Coca-Cola are so busy
fighting with each other, that they have left the non-cola sector open for CadburySchweppes.
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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

Advertising is a way building brand image. It does not promote quick selling. Thus
companies should used advertising only for long advertising can be used for:
a) Brand image building
b) Reminder advertising: reminding people to buy these drinks.
c) Reinforcement advertising-Telling people that they have made the right choice.
Television advertising seems to make a impact on the consumers (based on questionnaire
answers) so companies should concentrate more on television advertisements.
Sales promotion tools create a stronger and quicker response. Thus sales promotion tools
such as coupons, contests, premiums and the like should be used to dramatize product
offers and to boost sales. Sales-promotion effects are usually short run and induce the
people to purchase soft drinks, now.

Parties/Celebrations as arising avenue


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

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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

CHAPTER 6

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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

6.1 CONCLUSION

Survey reveals that 79% respondents prefer to drink Soft drinks whereas 17%
respondents prefer to drink Juices and 4% prefer to drink energy drinks.

73% respondents consume soft drinks daily where as 15% respondents consume it
2-6 times in a week and 12% more than 7 times.

Thumps up as most preferred soft drink with 21% respondent preferring it


whereas; Coke was second most preferred and Pepsi was third most preferred soft
drink. Fanta/Miranda was least preferred.

Parties/celebration is consider as prime reason for consuming soft drink

Taste is prime reason that induces respondent to purchase soft drink

67% respondent sees soft drinks as an aid to put off thirst

Advertisement does not affect respondent buying decision.

57% respondents drink the same drink every time.

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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

6.2 ANNEXURE
QUESTIONAIRRE
PERSONAL DETAILS:
NAME

AGE

- 15 -25

GENDER - MALE
OCCUPATION - STUDENT
SERVICE

25

-35

35-50

FEMALE
HOUSEWIFE

1. Which of the following drinks do you prefer?


a. Soft drinks
b. Juices
c. Energy drinks
2. When do you prefer to drink soft drinks?
a. Before meal
b. During meal
c. When you are thirsty
d. Others
3. Frequency of consumption of soft drinks in a week.
a. daily
b.2-6 times
c. above 7
4. Which of the soft drinks do you prefer the most?
a.Thums up
b.Pepsi
c.Mirinda/ Fanta
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BUSINESS

CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

d.Sprite
e.Limca
5. On what occasions do you often consume soft drinks?
a. Feeling thirsty
b. Parties/celebrations
c. Without any reason
6. What induces you to buy the soft drink?
a. Advertising
b. Influence
c. Status symbol
d. Taste
7. How do you view a soft drink?
a. As a health drink
b. As an impressive drink
c. As a status symbol
d. As an aid to put off thirst
8. Do advertisements affect your purchases?
a. Yes
b. No

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CONSUMER PERCEPTION TOWARDS COLDDRINKS ANALYSIS OF TWO RIVALS

6.3 BIBLIOGRAPHY
6.3.1 BOOKS:

Marketing Management

Philip Kotler

Consumer Psychographics

Gordon r. Foxall

6.3.2 WEBLIOGRAPHY:

www.consumerpsycologist.com

www.consumer.com

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

www.foodindustryindia.com

www.pepsico.com

www.coca-cola.com

www.cola-wars.net

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

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