EXECUTIVE SUMMARY

Soft Drinks were common preference among all the individuals. With the changing
lifestyle and income levels, people are shifting their consumption patterns.
Market Research is based on CONSUMPTION PATTERNS parameters like:
In consumption patterns, we want to highlight the factors which influence the co
nsumer to buy soft drinks. Various factor which influence the consumption of bev
erages are
1. Health drink
2. Status symbol.
3. Taste
4. Variety
5. Brand ambassador
6. Advertising campaign.
The basic subject matter of the research, analysis of Soft Drinks is focused to
study the mind/taste of different age group of people.
The study starts with determining the major players in the soft drinks, their ov
erall consumption pattern among the people and ends up with the conclusion as pe
r the state of mind of the average rational human being.

CHAPTER - 1
INTRODUCTION

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

Types of beverage
The various types of beverage are:
Alcoholic beverages
Non-Alcohol beverages
Soft drinks
Fruit juice
Hot beverages
Other
1. Alcoholic beverages
An alcoholic beverage is a drink containing ethanol, commonly known as alcohol,
although in chemistry the definition of an alcohol includes many other compounds
. Alcoholic beverages, such as wine, beer, and liquor have been part of human cu
lture 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 cate
gory includes drinks that have undergone an alcohol removal process such as non-
alcoholic beers and de-alcohol zed wines.
Non-alcoholic variants:
Low alcohol beer
Non-alcoholic wine
Sparkling cider
3. Soft drinks
The name "soft drink" specifies a lack of alcohol by way of contrast to the term
"hard drink" and the term "drink", the latter of which is nominally neutral but
often carries connotations of alcoholic content. Beverages like colas, sparklin
g water, iced tea, lemonade, squash, and fruit are among the most common types o
f soft drinks, while hot chocolate, hot tea, coffee, milk, tap water, alcohol, a
nd milkshakes do not fall into this classification. Many carbonated soft drinks
are optionally available in versions sweetened with sugars or with non-caloric s
weeteners.
4. Fruit juice
Juice is a liquid naturally contained in fruit or vegetable tissue. Juice is pre
pared by mechanically squeezing or macerating fresh fruits or vegetables without
the application of heat or solvents. For example, orange juice is the liquid ex
tract of the fruit of the orange tree. Juice may be prepared in the home from fr
esh fruits and vegetables using variety of hand or electric juicers. Many commer
cial juices are filtered to remove fiber or pulp, but high pulp fresh orange jui
ce is a popular beverage. Juice may be marketed inconcentrate form, sometimes fr
ozen, requiring the user to add water to reconstitute the liquid back to its "or
iginal state"

5. Hot beverages
Hot beverages, including infusions. Sometimes drunk chilled.
Coffee-based beverages
 Cappuccino
Coffee
Espresso
Caf au lait
Frapp
Flavored coffees (mocha etc.)
Latte
Hot chocolate
Hot cider
Mulled cider
Tea-based beverages
Flavored teas (chai etc.)
Green tea
Pearl milk tea
Tea
Herbal teas
Yerba Mate
Roasted grain beverages
Sanka
6. Other
Some substances may either be called food or drink, and accordingly be eaten wit
h a spoon or drunk, depending on solid ingredients in it and on how thick it is,
and on preference:
Soup
Yogurt
STUDY OF GROWTH OF SOFT DRINK MARKET

SOFT DRINKS
Carbonated drinks are dominated by artificial flavors based on cola, orange
and lime with Pepsi and coca-cola dominating the market. The entire part of the
drink is based on its artificial flavors and sweetening agents as no natural jui
ce is used.
MARKET
Cola products account for nearly 61-62% of the total soft drinks market.
Two global majors Pepsi and coke dominate the soft drink market.
NCAER survey says 91% of soft drink in the country is in the lower, lowe
r 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 20-2
2% in volume terms.
However, the market for carbonated drinks is stagnating and not growin
g as expected.

MAJOR PLAYERS IN SOFT DRINKS SEGMENT

COCA COLA: thanda matlab coca cola!!!

Coca cola has truly remarkable heritage. From a humble beginning in 1886 i
t 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 nec
essitated its departure. Coca cola has made its return to the country in 1993.an
d made significant investment to ensure that the beverage is available to more a
nd 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 thrivi
ng cinema industry, music etc. coca cola has been very strongly associated with
cricket, sponsoring the world cup in 1996.
In 2002, coca cola launched the campaign,Thanda Matlab coca cola. in 2003,coke
was available for just rs,5 crores in the country.

FANTA : GHOONTH BHAR SHARARAT KAR LEY!!!

Fanta entered the Indian market in year 1996 under the coca cola brand .ov
er the years, Fanta has occupied a strong market place and is identified as the
fun catalyst. Fanta stands for its vibrant color, tempting taste and tingling
bubbles that not just uplifts feelings but also helps free spirit thus encouragi
ng 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 th
ree decades.
The brand has been displaying healthy volume growing year on year and limca cont
inues to be leading flavoring soft drinks in the country.
Dive into the zingy refreshment of limca and walk away a new person.
SPRITE: SPRITE BHUJAYE PYAAS BAKI SAB BAKWAAS!!!

World wide sprite ranked as no.4 soft drink and is sold in more than 190 countri
es In India, sprite was launched in year 1999 and today it has grown to be one o
f the fastest growing soft drinks, leading clear lime category.
Today sprite is perceived as a youth icon. With strong appeal to youth sprite ha
s stood for a straight forward and honest attitude. Its clear crisp hingtaste en
courages todays youth to trust their instincts, influence them to be true who t
hey are and to obey their thirst.

THUMS UP: TASTE THE THUNDER!!!

Strong cola taste, exciting personality.

Thums up is a leading carbonated soft drink and most trusted brand in India. Ori
ginally introduced in 1977, thums up was acquired by the coca cola company in 19
93.
Thums up, is, known for strong, fizzy taste and its confident, mature and unique
ly masculine attitude. This brand clearly seeks to separate the man from the boy
s.

PEPSI: YEH DIL MAANGE MORE!!!

Pepsi cola is a carbonated beverage that is produced and manufactured by Pepsi c

o. It is sold in stores, restaurants and from vending machines. The drink was fi
rst made in the 1890s in North Carolina.
The brand was trademarked on June 16, 1903.There have been many Pepsi variants p
roduced 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)

CHAPTER - 2
RESEARCH METHODOLOGY
METHODOLOGY
Every project work is based on certain methodology, which is a way to systematic
ally solve the problem or attain its objectives. It is a very important guidelin
e and lead to completion of any project work through observation, data collectio
n and data analysis.
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 obj
ectives)
Feedback from the respondents
Analysis of feedback
Conclusion & findings
PURPOSE OF THE STUDY
The main aim of this research study is to analyze the preference of people (of d
ifferent age groups) on consumption patterns of carbonated Soft Drinks.
OBJECTIVE OF THE STUDY
To study the preferences of the people for soft drinks according to age
group.
To find out the factors that influences the consumers consumption of so
ft drinks.
To determine which alternative people prefer other than soft drink.
SCOPE OF THE STUDY
Seasonal drinks are not considered in the study.
We are not considering water & alcoholic drinks.
REVIEW OF LITERATURE
Taste or health: A study on consumer acceptance of cola drinks

This study examined the relative contributions of taste and health consideration
s on consumer liking and purchase intent of cola drinks. Eight types of commerci
al cola drinks were evaluated by 305 adult consumers who also completed a brief
questionnaire on food habits. Data were analyzed using factor analysis. Results
revealed that purchase intent of cola drinks was strongly related to degree of
liking and to several key sensory attributes including taste, drinks flavor and
greasiness. These variables merged as the first factor in the analysis, sugges
ting that consumers perceive these characteristics as being most important in th
eir choice of cola drinks. Factor 2 described a health dimension and was related
to respondents attitudest. Factor 3 comprised two remaining sensory attributes
(color and crunchiness), which apparently were of minor importance to the respo
ndents. These data suggest that in spite of current concern about reducing dieta
ry fat, health remains secondary to taste in the selection of cola drinks for co
nsumers in this population.
Source-Beverly J. Tepper and Amy C. Trail Journal of Food Science and Technology
, 15 September 1998
RESEARCH DESIGN
A research design is a framework or blueprint for conducting the marketi
ng research project. It specifies the details of the procedures necessary for ob
taining the information needed to structure and/or solve marketing research prob
lem.
The research design used in this project is a DESCRIPTIVE DESIGN.
DESCRIPTIVE STUDY as the name implies is designed to describe something-for exam
ple the characteristics of users of a given product, the degree to which the pro
duct use the varies with income, age.
SELECTION OF SAMPLE SIZE:
For the study, a sample size of 120 has been taken into consideration.
The aim was to collect 120 samples for the analysis. The samples should be such
that they are consumers of soft drinks. We also tried to get an adequate ratio o
f men and women in the samples. The main demographics targeted were the younger
age group as they are one who consumes more of soft drinks. Also we tried to foc
us more on the college going crowd and young professionals.
Buyers who have been consuming soft drinks were better able to answer the questi
ons regarding the influencing factors and the reasons for their consumption and
purchase.
SOURCES OF DATA COLLECTION:
PRIMARY DATA:
Questionnaire: Primary data was collected by preparing questionnaire and the peo
ple were requested to fill them.

DATA ANALYSIS
For this project we will use correlation analysis (chi-square test) for data ana
lysis. Correlation of the various variables was done with each other (for e.g. A
ge vs consumption, frequency vs quantity etc). This activity basically helped us
in identifying the perception and connotations of people towards various soft d
rinks brands.
CHEPTER - 3
DATA ANALYSIS & FINDINGS

OCCUPATION OF RESPONDENT vs OCCASION WHEN PEOPLE CONSUME SOFTDRINK CROSSTABULATI

ON.
Null hypothesis: There is no significant relationship between occupation and occ
asion.
Alternative hypothesis: There is significant relationship between occupation and
occasion.
Level of significance: 0.05
occasion when people consume softdrink Total
feel thirsty parties or celebration fast food or dinner
just like that
occupation of respondent student Count 21 17 29 34
101
Expected Count 19.4 19.4 26.9 35.4 101.0
business Count 1 3 0 4 8
Expected Count 1.5 1.5 2.1 2.8 8.0
service Count 1 3 3 4 11
Expected Count 2.1 2.1 2.9 3.9 11.0
Total Count 23 23 32 42 120
Expected Count 23.0 23.0 32.0 42.0 120.0
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 5.840(a) 6 .441
Likelihood Ratio 7.733 6 .258
Linear-by-Linear Association .249 1 .618
N of Valid Cases 120
a 8 cells (66.7%) have expected count less than 5. The minimum expected count i
s 1.53.
Symmetric Measures
Value Approx. Sig.
Nominal by Nominal Contingency Coefficient .215 .441
N of Valid Cases 120
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
Since p value is greater than alpha i.e. o.05 (95% confidence level), therefore
there is no association between occupation and occassion.

AGE OF RESPONDENT vs FREQUENCY OF CONSUMPTION IN A WEEK CROSSTABULATION

Null hypothesis: There is no significant relationship between age and frequency.
Alternative hypothesis: There is significant relationship between age and freque
ncy.
Level of significance: 0.05
frequency of consumption in a week Total
1-2 2-5 above 5
age of respondent 15-25 Count 52 40 13 105
Expected Count 52.5 41.1 11.4 105.0
26-35 Count 4 6 0 10
Expected Count 5.0 3.9 1.1 10.0
36-50 Count 4 1 0 5
Expected Count 2.5 2.0 .5 5.0
Total Count 60 47 13 120
Expected Count 60.0 47.0 13.0 120.0
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 4.570(a) 4 .334
Likelihood Ratio 6.007 4 .199
Linear-by-Linear Association 1.419 1 .234
N of Valid Cases 120
a 5 cells (55.6%) have expected count less than 5. The minimum expected count i
s .54.
Symmetric Measures
Value Approx. Sig.
Nominal by Nominal Contingency Coefficient .192 .334
N of Valid Cases 120
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.

Since p value is greater than alpha i.e. o.05 (95% confidence level), therefore
there is no association between purchase frequency and age.
AGE OF RESPONDENT vs QUANTITY PEOPLE PREFER TO BUY CROSSTABULATION
Null hypothesis: There is no significant relationship between age and quantity.
Alternative hypothesis: There is significant relationship between age and quanti
ty.
Level of significance: 0.05
quantity people prefer to buy Total
300 ml 500 ml 1 ltr 1.5 ltr
age of respondent 15-25 Count 62 31 9 3 105
Expected Count 57.8 34.1 9.6 3.5 105.0
26-35 Count 3 6 1 0 10
Expected Count 5.5 3.3 .9 .3 10.0
36-50 Count 1 2 1 1 5
Expected Count 2.8 1.6 .5 .2 5.0
Total Count 66 39 11 4 120
Expected Count 66.0 39.0 11.0 4.0 120.0
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 10.522(a) 6 .104
Likelihood Ratio 8.563 6 .200
Linear-by-Linear Association 5.785 1 .016
N of Valid Cases 120
a 8 cells (66.7%) have expected count less than 5. The minimum expected count i
s .17.
Symmetric Measures
Value Approx. Sig.
Nominal by Nominal Contingency Coefficient .284 .104
N of Valid Cases 120
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.

Since p value is greater than alpha i.e. o.05 (95% confidence level), therefore
there is no association between age and quantity.
FREQUENCY OF CONSUMPTION IN A WEEK vs QUANTITY PEOPLE PREFER TO BUY CROSSTABULAT
ION
Null hypothesis: There is no significant relationship between frequency and quan
tity.
Alternative hypothesis: There is significant relationship between frequency and
quantity.
Level of significance: 0.05
quantity people prefer to buy Total
300 ml 500 ml 1 ltr 1.5 ltr
frequency of consumption in a week 1-2 Count 38 17 4
1 60
Expected Count 33.0 19.5 5.5 2.0 60.0
2-5 Count 22 20 3 2 47
Expected Count 25.9 15.3 4.3 1.6 47.0
above 5 Count 6 2 4 1 13
Expected Count 7.2 4.2 1.2 .4 13.0
Total Count 66 39 11 4 120
Expected Count 66.0 39.0 11.0 4.0 120.0
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 13.255(a) 6 .039
Likelihood Ratio 10.877 6 .092
Linear-by-Linear Association 5.399 1 .020
N of Valid Cases 120
a 6 cells (50.0%) have expected count less than 5. The minimum expected count i
s .43.

Symmetric Measures
Value Approx. Sig.
Nominal by Nominal Contingency Coefficient .315 .039
N of Valid Cases 120
a Not assuming the null hypothesis.
b Using the asymptotic standard error assuming the null hypothesis.
Since p value is less than alpha i.e. .05 (95% confidence level), therefore h0 i
s rejected. This shows that there is high association between purchase frequency
and SKU or quantity packs. This is an indication of the fact that people prefer
ring smaller SKUs usually purchase more as compared to others.

CONCLUSION

Following are the concluding points taken into consideration after the conduct o
f the research study:
Maximum consumption of soft drink in a week is 1-2 times.
Most of the people prefer to buy 300 ml bottle.
Most of the people consume without any occasion(Just Like That)
The most favorable characteristic is taste, which induces people to buy
soft drink.
The most preferable alternative for soft drink is fruit juices.
By the research we found out that there is no effect of advertisement an
d brand ambassador on the purchase of soft drink.

ANNEXURE

QUESTIONNAIRE
PERSONAL DETAILS
Name - _________________
Age - 15-25 26-35 36-50
Gender - Male Female
Occupation - Student Business Service
Hello! We are the student of DBIM, VNSGU and we are required to submit project o
n a comparative study of consumption of Soft Drinks. For the purpose, we are con
ducting the survey. Will you please take a few minutes to answer some questions?
We assure you that your answers will be kept completely confidential.

Q1. Frequency of consumption of your preferred drink in a week?

a) 1-2 times b) 2-5 times c) Above 5

Q2. What quantity do you usually prefer to buy?

a) 300 ml b) 500 ml bottle c) 1 litre
d) 1.5 litre
Q3. On what occasions, do you often consume the Soft Drinks?
a) Feeling Thirsty b) Parties / Celebrations c) with fast foo
d/ dinner
d) Without any reason (just like that)
Q4. What induces you to buy Soft Drinks?
a) Price with quantity b) Health Drink c) Status symbol
d) Taste e) Variety
Q5. If not a Soft Drink, which other beverage (other than water) tops your mind?
a) hot beverages b) Milk based(shakes/lassi)
c) fruit juice

Q6. How do you view Soft Drinks?

a) As a health drink b) As a status symbol
c) As an aid to put off thirst d) Any other, please specify _
_______
Q7. Do advertisements affect your purchases?
a) Yes b) No
Q8.Through which medium did you come to know about your preferred soft drink bra
nd?
a) Hoardings and banners
b) Newspaper and magazines
c) TV/radio
d) Word of mouth
e) Others ..

Q9. Do brand ambassador affect your purchases?

a) Yes b) No
Q10. Name any three brands of Soft Drinks that are there in your mind at present
?
Soft Drinks: 1.________________ 2. ______________ 3. ________________

BIBLIOGRAPHY
http://en.wikipedia.org/wiki/Beverage
 www.foodindustryindia.com
http://fnbnews.com/article/detarchive.asp?articleid=25105&sectionid=3
http://fnbnews.com/article/detarchive.asp?articleid=24983&sectionid=3
http://www.foodindustryindia.com/newfood/detailnews.jsp?n=Xtazy,%20anoth
er %20energy%20drink%20for%20the%20Indian%20market&id=598
http://fnbnews.com/redfr.asp?fn=/other/aboutus.asp&title=About%20Us#Food
&beverage