AN EMPIRICAL STUDY ON RETAILERS PERCEPTION TOWARDS PEPSI IN

TIRUCHIRAPPALLI DISTRICT
Author Name (Corresponding Author): S.P.KARUPPASAMY PANDIAN
Qualification
: MBA,(Ph.D)
Additional Qualification
: PG Diploma in labour law & administration law
PG Diploma in effective communication skills in English
Institution at present Working: Cyryx School of Business, Male, Maldives.
Designation
: Lecturer
Address for Communication : S/O Mr. S.Paramasivam,
C3/228 kailasapuram,
BHEL township,
Trichy 620014,
Tamilnadu, India.
Mail id: spkpandian@yahoo.co.in
Mobile: +9607536024
Author Name (Co Author1): S.P. NIVETHA VARTHANI
Qualification
: B.com, MBA (pursuing)
Additional Qualification
: PGDCA
Institution at present studying: Ist Year MBA, Saranathan College of Engineering, Trichy,
India.
Department
: Department of management studies
Address for Communication : D/O Mr. S.Paramasivam,
C3/228 kailasapuram,
BHEL township,
Trichy 620014,
Tamilnadu, India.
Mail id: nivethabalu27@gmail.com
Mobile: (0)9944614084

AN EMPIRICAL STUDY ON RETAILERS PERCEPTION TOWARDS PEPSI IN

TIRUCHIRAPPALLI DISTRICT
Abstract:
Retail is an emerging sector in India. Marketers are leaving no stone unturned to
influence the customers by offering them in various ways, at various locations, in
various forms resulting in emergence of various retail formats throughout the country.
Customers are highly influenced by image of the retail outlet, its attributes, product
range, variety, services, employees behaviour, dcor, music and marketing strategies.
In this study the researcher wants to know the factors influencing retailers perception
and expectation towards Pepsi in Tiruchirappalli, Tamilnadu. This study is a
descriptive one. Primary data was collected by the researcher with the help of
structured questionnaire administered to the retailers in Tiruchirappalli District. 251
retailers constitute the sample size. Fifteen questionnaires were distributed for the
purpose of pre-testing the questionnaire's contents a complete questionnaire was
developed based on the comments collected during the pre-testing period. Type of
sampling method used was Convenience sampling. Using statistical package for
social science (SPSS) the following test were administered 1.Factor Analysis and
2.Multiple Regression. To check the reliability and validity of the data collected
Cronbachs alpha test administered. Based on the test results, some of the relevant
findings were derived that will be significant and relevant to the present Indian
scenario.
Key words: Retailing, Perception, Outlets

AN EMPIRICAL STUDY ON RETAILERS PERCEPTION TOWARDS PEPSI IN

TIRUCHIRAPPALLI DISTRICT
Introduction
Retail is an emerging sector in India. Marketers are leaving no stone unturned to
influence the customers by offering them in various ways, at various locations, in various
forms resulting in emergence of various retail formats throughout the country. Customers
are highly influenced by image of the retail outlet, its attributes, product range, variety,
services, employees behaviour, dcor, music and marketing strategies. Retailing
includes all the activities involved in selling goods or services directly to final consumers
for personal, nonbusiness use. A retailer or retail store is any business enterprise whose
sales volume comes primarily from retailing. Any organization selling to final consumers
whether it is a manufacturer, wholesaler, or retaileris doing retailing. It does not
matter how the goods or services are sold (by person, mail, telephone, vending machine,
or Internet) or where they are sold (in a store, on the street, or in the consumer's home). In
this study the researcher wants to know the various factors that influence the perception
of retailers towards Pepsi soft drinks in Tiruchirappalli City.
Review of Literature
Blattberg, Peacock, and Sen (1976, 1978) describe 16 purchasing strategy segments
based on three purchase dimensions: brand loyalty (single brand, single brand shifting,
many brands), type of brand preferred (national, both national and private label), and
price sensitivity (purchase at regular price, purchase at deal price). Kretter,Kadekova et
al (2010) country of the origin of food and consumer preference in segment of
university students consumers prefer the attributes like freshness, flavour and also the
price. Consumer prefers fruit juices because of their flavour and freshness. Gupta &
gupta (2008) fruit drinks: how healthy and safe discussed that fruit drinks are
popularly used in most urban households today markets are flooded with a large variety
of juices e.g.; mango, apple, guava, litchi. The main reason for increased consumption is
changing lifestyles & rising level of health consciousness among consumers and parents.
They believe that these drinks provide superior nutrition because of their status & high
beverage cost. Gupta parul (2003), studied the coke & Pepsis rural drive to push sales
soft drink giants coca-cola & Pepsi have signed on thousands of new retailers in a drive
into rural India that has pushed up sales steeply. Coca-cola has made its beverages
available in 40,000 additional villages in the last 3 years. Jyoti k arun (2002), studies the
coca-cola Indias marketing plan for the summer peak sales season is vested with a rural
thrust & rides on the back of its newly launched 200-ml bottle, priced between Rs. 5 to
Rs 6 across the country. While the soft drinks sales showed flat growth last year, sales in
that year are up by 80% for the company. Nishu Sharma (2011), Comparative study on
consumption patterns of soft drinks and fruit juices studies how different consumers
consume soft drinks and fruit juices with respect to different patterns of consumption.

Deepak Kumar Chechani (2008), A study of FACTOR influencing choice of soft

Drinks in Udaipur City studies different factors influencing the choice of soft drinks
consumption. Bhushanmehta (2012) Project Report Organized Retailing in India reveals
important aspects of retail sector in India. Bhushanmehta (2012) Analysis of Brand
Preference of Soft Drinks in Global Market provides details regarding consumers
preference on soft drinks.
Consumer behaviour is a key success of any Company. Consumer behaviour is depending
upon culture, value, traditions. When marketers offer unique benefits in a new
product they encourage consumer to subtype. When Pepsi Co introduced a new product
in a market it will change the consumer behaviour. When Pepsi attempted to introduce
another category breakfast colas by introduced Pepsi AM, it was less successful.
Report on Indian Beverage Industry (2012) discloses the following things regarding
beverage market.A Beverage is a drink specifically prepared for human consumption.
Beverages almost always largely consist of water. Drinks often consumed include: Water
(both flat or carbonated),Juice based drinks, Soft drinks, Sports and Energy drinks,
Alcoholic beverages like Coffee, tea ,Dairy products like milk. Commonly, drinks are
filled into containers, like glass or plastic bottles, steel or aluminum cans as well as
cardboard supported packages, like the "Tetra Pak" or others. India has a population of
more than 1.150 Billion which is just behind China. According to the estimates, by 2030
India population will be around 1.450 Billion and will surpass China to become the
World largest in terms of population. Beverage Industry which is directly related to the
population is expected to maintain a robust growth rate.
Research Questions

To study the factors influencing retailers perception and expectation towards

Pepsi in Tiruchirappalli, Tamilnadu.

To find out whether advertisements have an impact on retailers perception

towards Pepsi.

Hypotheses:
Hypothesis 1
There is a relationship among different factors that influences perception and expectation
of retailers towards Pepsi.
Hypothesis 2
Advertisement, quality and offers can enhance the retailers perception and expectation.

Research design
The researcher carried out the study with descriptive research. The descriptive
research is concerned with describing the characteristics of a particular individual, or of a
group. Five point likert-type scale was used and that varied from 1 = strongly disagree to
5 = strongly agree. Likert scale is being adapted to measure and quantity Factors
influencing perception and expectation of retailers.
Pilot study
Fifteen questionnaires were distributed for the purpose of pre-testing the questionnaire's
contents a complete questionnaire was developed based on the comments collected
during the pre-testing period.
Data source
Primary data has collected through questionnaire administered to retailers,
Questionnaires were used to find out Perception and expectation of Pepsi among
retailers in Trichy city with the help of the questionnaire, filled by 251 retailers, the
result was analyzed. The sample data was collected through interview from retailers in
convenience stores, supermarkets and departmental stores. The secondary data was
collected from updated journals, magazine and websites. The sample size was 251.
Sampling technique used is convenient sampling.
Statistical tools
The researcher analyzed the data by using the SPSS Statistical Package For
Social science. The following tests were administered, 1)Factor analysis 2)Multiple
regression 3)Reliability
Cronbachs (alpha) is a statistical used in this study. It is commonly used as a
measure of the internal consistency or reliability of a psychometrics test score for a
sample of examinees.
Table.1 Reliability Test

Cronbach's Alpha

N of Items

.715

30

An examination had been made from the reliability of the data to check whether
random error causing inconsistency and in turn lower reliability is at a manageable level
or not, by running reliability test. From the above table, it is clear that values of

coefficient alpha (Cronbachs Alpha) have been obtained, the minimum value of
coefficient alpha was. This shows data has satisfactory internal consistency reliability.

FACTOR ANALYSIS
Hypothesis 1 is being tested using factor analysis.
Hypothesis 1 - There is a relationship among the factors that influences perception and
expectation of retailers.
Table 2 KMO and Bartletts Test
Kaiser-Meyer-Olkin Measure of
Sampling Adequacy.

.577

Bartlett's Test of
Sphericity

639.443

Approx. ChiSquare
Df
Sig.

253
.000

KMO measure of sampling adequacy is an index to examine the appropriateness

of factor analysis. High values 0.5 and 1.0 indicate factor analysis is appropriate. Values
below 0.5 imply that factor analysis may not be appropriate. From the above table it is
seen that Kaiser-Meyer-olkin measure of sampling adequacy index is 0.577 and hence the
factor analysis is appropriate for the given data set. Bartletts test of Sphericity is used to
uncorrelated. It is based on chi-square transformation of the determinant of correlation
matrix. A large value hypothesis. In turn, this would indicate that factor analysis is
appropriate. Bartletts test of Sphericity Chi-square statistics is 639.443, that shows
statements are correlated and hence as inferred in KMO, factor analysis is appropriate for
the given data set.

Rotated Component Matrix

This table (called the pattern matrix for oblique rotation) reports the factor loading
for each variable on the component or factor after rotation. Each number represents the
partial correlation between the item and the rotated factor. These correlations can help us
to formulate an interpretation of the factor or components. From the below table, each
factor loading values represent the partial correlation between the variables the rotated
factor by inferring a common thread among the variables that have large loading above
0.5 values for a particular factor.
Table 3 Rotated Component Matrix
1
ADVERTISEMENT
PROMOTION
MSRS

.845
.586

AVAILABILITY

.903

TASTE

.824

OFFERS BY PEPSI

.844

UNBIASED

.812

PREFERENCE

.857

ATTRACTION

.854

AMBASSADOR
DIFFERENT
PACKS

.594
.716

QUALITY

.721

SATISFIES THAN
OTHER

.437

CLIMATE
CONDITION

.548

REFIDGERATOR

.586

DELIVERING THE
STOCK

.690

EXACT

.675

QUANTITY
PRICING
STRATEGY

.782

APPROACH THAN
COMPETITOR

.803

PRODUCT LINE

.452

QUALITY OF
PEPSI

.832

TASTE OF PEPSI

.788

PACKING OF
PEPSI
STOCK DELIVERY

.823
.821

ADVERTISEMENT
AND PROMOTION
PEPSI BRAND
FACILITIES
INTRODUCE
MORE FLAVOURS

.523

.715
.575
.885

MORE OFFERS

.730

PROMOTE PEPSI
IN STORES

.480

HELP IN
ARRANGING

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.
a Rotation converged in 12 iterations.

.530

MULTIPLE REGRESSIONS
Hypothesis 2 is being tested using multiple regressions.
Hypothesis 2 Advertisement, quality and offers can predict the retailers perception and
expectation.
Regression analysis is used to assess the relationship between a dependent variable
(DV) and several independent variables (IVs). This is one of the most commonly used
techniques in much of the social science research.

REGRESSION ANALYSIS
Enter method in multiple regression analysis used for this study. Engagement
variables under various dimensions were regressed with the overall satisfaction of the
employees.

Table 4 Model summary

Model R

.978a

R Square

Adjusted
Square

.957

.951

R Std. Error of
the Estimate
.270

From the above table, model summary table shows R-Square for this model is .957. This
means that 95.7 present of the variation in overall satisfaction (dependent variable) can be
explained from the 24 independent variables. This table also shows the adjusted R-square
for the model as .951.

Table 5 ANOVA
Model

Sum
of df
Mean Square F
Sig.
Squares
Regression 359.625
28
12.844
175.664 .000b
1
Residual
16.232
222
.073
Total
375.857
250
The ANOVA table as displayed above, shows the F ratio for the regression model that
indicates the statistical of the overall regression model. The larger the F ratio there will be
more variance in the dependent variable that is associated with the independent variable.
The F ratio = 175.664. The statistical significance is .000- sig. There is relationship
between independent and dependent variables.
CORRELATIONS
Table 6 Coefficients
Model

(Constant)
AVAILABILITY
TASTE
OFFERS BY PEPSI
UNBIASED
PREFERENCE
ATTRACTION
AMBASSADOR
DIFFERENT PACKS
QUALITY
SATISFIES THAN
OTHER
CLIMATE
CONDITION
VISI COOLER
DELIVERING THE
STOCK

Unstandardized
Standardized
Coefficients
Coefficients
B
Std. Error
Beta
.399
.146
-.043
.036
-.042
.025
.027
.021
.018
.032
.017
-.009
.023
-.010
.023
.023
.023
.000
.029
.000
.026
.028
.028
-.069
.030
-.066
.012
.030
.012

Sig.

2.734
-1.183
.947
.554
-.407
.991
-.004
.912
-2.320
.412

.007
.238
.345
.580
.684
.323
.997
.363
.021
.681

-.028

.031

-.026

-.905

.366

.014

.028

.017

.486

.628

.124
-.017

.027
.031

.158
-.017

4.633
-.541

.000
.589

EXACT QUANTITY
PRICING STRATEGY
APPROACH THAN
COMPETITOR
PRODUCT LINE
QUALITY OF PEPSI
TASTE OF PEPSI
PACKING OF PEPSI
STOCK DELIVERY
ADVERTISEMENT
AND PROMOTION
PEPSI BRAND
FACILITIES
INTRODUCE MORE
FLAVOURS
MORE OFFERS
PROMOTE PEPSI IN
STORES

.005
.039

.029
.027

.005
.040

.187
1.433

.852
.153

-.003

.032

-.002

-.084

.933

.029
-.051
.017
-.013
.976

.030
.030
.027
.022
.035

.029
-.041
.013
-.012
.976

.980
-1.711
.649
-.597
27.611

.328
.089
.517
.551
.000

-.042

.035

-.034

-1.194

.234

-.044
.015

.036
.029

-.050
.014

-1.251
.517

.212
.606

-.011

.026

-.013

-.411

.681

.005

.028

.005

.164

.870

-.100

.036

-.072

-2.769

.006

To determine if one or more of the independent variables are significant predictors

of retailers perception and expectation score, we examine the information provided in the
coefficient table. From the above ten independent variable only two independent
variables are having larger beta value and statistically significant.
The standardized coefficient beta column reveals that delivery of sock in time has
a beta coefficient .976, which is significant (0.000provision of visi cooler has a beta
coefficient .158, which is significant (0.000).

CONCLUSION
Retailers are the important marketing channels paving way to better customer
relationship. Retailers play important role in increasing companys profit and product

preference. They are the end of the marketing communication process providing effective
reach of the product and thus increasing brand value of the company. Hence retailer need
to be motivated for the effectiveness of organisations marketing practises. In case of
Pepsi retailers are motivated only to certain level. Hence Pepsi need to focus on
satisfying the retailers in selling Pepsi products as they are the valuable assets to the
organisation. Pepsi should come out with more offers to satisfy the retailers. They need to
focus on building positive image regarding the product on retailers mind. Hence they
need to concentrate on taste of the product and introducing new product line. Retailers
need to be rewarded with respect to the performance to the sales. Satisfied retailer will
always be the worthy asset to the organisation and thus increasing competitive advantage
over the rivalries.
References:
Baker, Erdogan and Tagg, 2001, Selecting Celebrity Endorsers: The
Practitioners Perspective, Journal of Advertising Research, Vol. 41, No. 3, pp 39
-58
David A. Aaker and James M. Carman, "Are You Overadvertising?" Journal of
Advertising Research (August-September 1982): 57-70.
George S. Low and Jakki J. Mohr, "Brand Managers' Perceptions of the
Marketing Communications Budget Allocation Process" (Cambridge, MA:
Marketing Science Institute, Report No. 98-105, March 1998)
Gabriel J. Beihal and Daniel A. Sheinen, "Managing the Brand in a Corporate
Advertising

Environment:

Decision-Making

Framework

for

Brand

Managers," Journal of Advertising 17 (June 22, 1998): 99.

James B. Amdorfer, "Absolute Ads Sans Bottle Offer a Short-Story Series,"
Advertising Age, January 12, 1998, p. 8
Shelly Branch, "Absoluts Latest Ad Leaves Bottle Behind," Wall Street Journal,
May 3, 2001, p. B9.
King, S. (1991), " Brand-building in the 1990s", Journal of Consumer Marketing,
Vol. 8 No.4, pp.43-52

Parker, K. (1991), " Sponsorship the research contribution", European Journal of

Marketing, Vol. 25 No.11 , pp.22-30
Wells, B. (1989), " Branding, (part II), order out of chaos", Marketing and Media
Decisions, Vol. 24 No.6, pp. 99-100
WEBSITES
http://www.marketingmasters.co.uk/communications.htm

http://www.allwords.com/word-communication+mix.html

http://marketingteacher.com/lesson-store/lesson-marketing-communications.html

http://qundeel.com/comparison-of-advertising-strategy-of-pepsi-with-that-of-coke

http://www.pepsiindia.co.in