Acknowledgements

As we complete this project we praise God the Almighty Father for giving us
mental strength and good health, which we consider very important for our successful
completion.

We thank our director Rev. Fr. Basani Prakash for allowing us to take up a useful
project in an industrial establishment so that we may gain first hand experience.

We sincerely thank our respected principal, Mr. R. L. Murthy for his

encouragement and for recommending us for the project.

We express our gratitude to our external guide Mr. ……………

In a special way for readily accepting our request for doing this project at his esteemed
organization and assigning a very useful and challenging project. He has taken special
interest in supervising our project and evaluating our work from time to time. We also
thank him for allowing us to freely use the company resources.

We thank Mr. Kalyan Reddy, Lecturer CJITS, for accepting to be our internal
guide and supporting all the way. He took pains for understanding our project and
suggested ways to improve the project.
His encouragement and guidance are invaluable.

We thank our Head of the Department Mrs. Uma N. Dulharre, for accepting our
project and organizing internal seminars for our project. Her deadlines were instrumental
for the timely completion of the project.

We thank Mr. M. Vijay Chandra Rao, Software Engineer, Wipro Technologies

for evaluating us by assigning a mini-project prior to the actual project, which helped us
gain self-confidence and team spirit.

We also thank the entire faculty and students at CJITS who participated in the
project seminars and indirectly helped us by the way of their encouragement and
constructive criticism.
 Finally we acknowledge the support and encouragement we received from our
family members without which the project work might not have been so smooth.
 Hyderabad Beverages Private Limited
PEPSI Regd. Off. : 105, 2nd Floor, E – Block,
Surya Towers, S.P.Road, Secunderabad. – 500 003
«: 26326222 (6 lines) Fax: 040 – 7894188

Dt: 26-04-2003

TO WHOM SO EVER IT MAY CONCERN

This is to certify that K. RAMESH, is a bonafide student of the

Aurora School Of Business Management, Chikkadapally, Hyderabad.
He has completed his project work titled “ Consumer Perception on
Soft Drinks with special reference to PEPSI Co. ” under my
guidance successfully through Hyderabad Beverages Pvt. Ltd., in our
organization from 15-03-2002 to 25-04-2003. He is found to be very
dynamic and hardworking, we wish him a bright future and success.

(K.V.KISHORE)
G.M. Sales & Marketing.
 Table of Contents

1. ABSTRACT OF THE STUDY 1

2. INTRODUCTION TO SOFT DRINK INDUSTRY 4

3. PROFILE OF HYDERABAD BEVERAGES (P) Ltd. 15

4. AN OVERVIEW OF CONSUMER BUYING BEHAVIOUR 19

5. OBJECTIVE OF THE STUDY 30

6. RESEARCH METHODOLOGY 31

7. CONCLUSIONS 32

8. SUGGESTIONS 34

9. LIMITATIONS 36

10. APPENDAGES 37

11. SURVEY ANALYSIS AND INTERPRETATION 40

12. BIBLIOGRAPHY 54
 A Project Report
On

CONSUMER PERCEPTION ON
SOFT DRINKS WITH SPECIAL
REFERENCE TO PEPSI CO.

A Dissertation submitted in partial fulfillment of the

requirement for the award of the Degree of

“MASTER OF BUSINESS
ADMINISTRATION”

By

K. RAMESH
(ROLL NO. 4201112)

Under the Guidance of

MS. AATHIYA

AURORA SCHOOL OF BUSINESS

(Affiliated to OSMANIA University)
Chikkadapally, Hyderabad.

2001 - 2003
 ABSTRACT OF THE STUDY

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.

Soft drink includes all type of non-alcoholic, carbonated

flavored or otherwise sweetened beverages. The entry PEPSI and
the re-entry of COCA-COLA in the Indian market are inevitably
facing stiff competition but the ultimate winner is

-1-
customer/consumer. This as lead the researcher to study the
perception of consumers towards different brands of soft drinks
and to gauge out the promotional strategies being adapted by
marketers to lure promiscuous buyers and win a large share in the
markets.

The Cola wars are intensifying and bringing manifold

changes in the soft drink industry. The researcher has conducted a
detail survey, interpreting the responses to study the perceptions of
the consumers. Now the people with changing life styles and
increase income labours have made the soft drink a comman man
drink.

Even though the existing system of marketing of soft drink

has not tapped such a big market in the interiors of the countries
specially the rural areas, as marketing in the sub urban and rural
areas is developing slowly.

Despite the soft drink industry is growing at a very healthy

pace and stands at 18% per annum. The market for cool drinks
comprises of teens and youngsters in the 16-25 years age group
who are largest consumers of the soft drinks in the country
followed by 26-35 years age group people and adults in the age

-2-
 group of 35 and above, followed by the age group of below 15
years hence, companies must develop their product and marketing
strategies to suit their wants and needs.

-3-
 INTRODUCTION TO
SOFT DRINKS INDUSTRY

HISTORY
The history of soft drink market in India started way back in
1949 with the introduction of soft drink by parle group, followed
by other manufactures of the soft drinks like pure drinks Coca-
Cola, Mc-Dowell, Duke, etc, after the exist of Coca-Cola in 1978,
parle become the undisputed market leader till recent past and
early nineties. In 1990’s reemerges of Pepsi gave new dimension
to soft drink industry.

CHANGING FACTS OF SOFT DRINK INDUSTRY

Initially when soft drinks were introduced in the 19th century
it was positioned as a thirst quenching drink but due to the
changing times it is now positioned as a fun drink. Soft drinks are
consumed by almost every section of the society for their cool and
tasty attributes. The soft drinks in India were available only in
200ml with Thums-Up, first 250ml was to counter the entry of
Pepsi and secondly to increase the market share. The 250ml
Thums-Up was introduced before the summer of 1989 as a Maha
Cola with simple and clear position as more Cola, in same price. It
was the clear conveying of a consumer of benefit and that did the

-4-
trick hands the sales soared. The Campacola reacted by introducing
300ml bottle in Delhi but this did not work as the price was not
same and consumer’s benefit was not clear. But with the success of
the 250ml bottle Parle to decided to carry on the attract to its
logical conclusion in 1990’s, by then Lehar Pepsi made its entry
and was doing well in Delhi. So Thums-Up came with a jumbo
offer of 500ml. Concept developed by Pale group in India was
followed by Pepsi and later on such tricks were common in soft
drink industry in India, for their bottle supremacy, defaulting
benefits for consumers and increasing their market share. Pepsi
foods are now a head of their competitor by introducing 200ml and
2.5 liter plastic bottle (economy pack).

In 1993 Coca-Cola again re-introduced himself in Agra, and

after that they purchased Parle soft drink group with unbelievable
price. The massive entry was threatened the Pepsi cola who was
the market leader at that time and Pepsi was introduced himself
again as a most preferred Cola but the strategies of Coca-Cola was
so wrong due to that up to now the company is in the loss. But the
strongest weapon in its hand is Thums-Up. In starting the Coca-
Cola Co’s, try to dominate upon Thums-Up, so that they were
changes in taste and slow down the promotional activities. But

-5-
later they changed their strategies and again trying to position it
with slogan of “I WANT MY THUNDER”.

In case of Lemon’s drink Limca was the only brand available

in cloudy lemon flavor with enjoyed monopoly for almost two
decades, because the consumers associated this drink with the
traditional Nimbu Pani, and isotonic salts it contains do indeed
help quench thirst. The Pepsi attacked the Gold Spot in 1990 and
1991 by introducing Lehar 7up and Marinda, also felt the need of
attacking its competitor parle Limca by introducing Lehar Marinda
also felt the need of attacking its competitor Parle Limca by
introducing Lehar Team, actually the year 1993 saw the emergence
of Lehar teem 250ml bottle.

PRESENT SENERIO IN INDIA

The government considered soft drink as a industry due to
this the excise duty levied by the government of soft drink is very
high. The bottle cost from Rs 10-15, while pet bottles costing from
Rs 20-45. The soft drink industry has an annual sale exceeds to
about 800 cores and most of the bottling company have been
flourishing.

-6-
 Since the last decade all the soft drink companies have grown
and expanded their particular brand in the market for better
consumer services.

According to IMRB retails tracking study share of bottle soft

drink market in May 2003, Pepsi brands have 47.6%, Coca-Cola
brands have 49.5% and others have 2.9%.

Share of Cola Segment Share of Orange Share of Lemon

Segment Segment
Pepsi – 48.7% Mirinda Orange–54% Limca – 74%
Coke – 27.1% Fanta – 44% Mirinda Lemon – 26%
Thums up – 23.1% Gold Spot – 2% -
Campa Cola – 1.1% - -

The capacity of present India soft drink market is around 150

million cases.
The per capita consumption in India is 6 bottles per annum.

COMPLEXCITIES IN THE SOFT DRINK MARKET

The soft drink business in among the most complicated
because of following reasons:
1. At the most basic level, it is a two way business in way
that when a consumers buys a cigarette or soap, that

-7-
 ends the marketing story, where the soft drink bottles
have to be collected back.
2. It is a seasonal product and sells strongly just for six
months.
3. Value edition is done by retailer by way of chilling the
bottle
4. It is impulse by consumer loyalty is uncertain.

INDUSTRY TO THE COMPANY

Pharmacist Calerb D.Bradham invented Pepsi Cola in 1893.

Pepsi is a U.S $ 28 billion company with headquarters in New
York.

PEPSI CO. WORLD WIDE OPERATIONS

Pepsi Co operates on a global basis. 170 + countries with an
employ force of 338000. Pepsi Co. is the third largest company in
the U.S and amongst the 15th largest in the world.

U.S fortune 50 rank in their companies annual revenue at $28

billion and world wide operations more than 150 countries with
annual profit of $ 2.5 billion.

-8-
PEPSI CO’S OPERATING COMPANIES ARE

1. PEPSI Cola North America.

2. PEPSI Cola International.
3. PEPSI Co Wine Sprits.
4. PEPSI Co foods International.
5. Fritolay.
6. Pizza Hut
7. Kentucky Fried Chicken.
8. Taco Bell.

Having the $ 28 billion+ annual sales.

PEPSI : THE PAST AND THE PRESENT

In the Century since James Henry king, first gave his nod of
approval millions of people all over the world have enjoyed the
great taste of Pepsi-cola today, Pepsi –Cola is sold is more then
170 countries and accounts for about one quarter of the world’s
soft drink. More the 70% of Pepsi’s sales are from North America,
where it enjoyed strong growth and increased volume.

-9-
 Our well-known brands include Pepsi, Diet Pepsi, Pepsi
One, Mountain Drew, Mug, All sport, Lipton Brisk and Aquafina.
In addition, salty snacks and juices are staples of out sister
divisions, Frito-lay and Tropicana. One of the biggest factors in
long-term success of consumers Products Company is whether
more people fall in love with your products. Each year Pepsi-cola
account for nearly one –third of total soft drink sales in the US, a
consumer market totaling about 454 billion .in 11992 Pepsi –Cola
formed a partnership with Thomas J.Lipton Co. today Lipton is the
biggest selling ready-to-drink tea brand in the united states.

Outside the United States, Pepsi-Cola company’s soft drink

operations include the business of 7-up international. Pepsi-Cola
began its selling its products internationally in 1934 with is
operations in Canada. Operations grew rapidly beginning in the
1950’s. Today Pepsi-Cola products account to brands about
A quarter of all soft drink sold internationally. In addition to
brands about marketed in the United States, major products include
Mirinda and Pepsi Max, Saudi Arabia, Spain, Thailand, United
Kingdom. The company has also established operations in the
emerging markets of the Hungary, India, Poland, Slovskis and
Russia, where Pepsi-Cola was the first US consumer product

- 10 -
to be marketed. Pepsi-Cola provides advertising, marketing, sales,
and promotional, support to Pepsi-Cola bottlers and food service
customers. This include some of the world’s best loved and must
recognized advertising. New Advertising and exciting promotions
keep Pepsi-Cola brands young. The company manufactures and
sells soft drink concentrate to Pepsi-Cola bottlers. The company
also provides fountain beverage products.

PEPSI CO. MISSION STATEMENT

“Pepsi Co overall mission is to increase the value of our
shareholder’s investment. We do this through sales growth, cost
control and wise investment of resources. We believe our
commercial success depends up on offering quality and value to
our customers and environmentally sound, and providing a fair
return to out investors while adhering to the highest standrards of
integrity”.

THE PEPSI POWER:

The year was 1993,and ‘the real thing’ was about to stage a
come back in the Indian market after a16 –year absence. At Pepsi
Foods headquarters in Mohan Deo Building in New Delhi, the
hearts of Pepsi’s top brass were knocking furiously at their Ribs.
An internal market research report by Pepsi had shown that if Coke

- 11 -
were to be made to be available in the country –more than 70% of
Pepsi’s customers would shift to four years of an indifferent
presence, after which it had barely begun to establish itself in the
India bottled soft drink market.

The going gotten tough many a time, but the tough had been
on the roll. Eight years have passed by Pepsi still exists, with its
head high. Ron Coughlin .VP, International marketing, Pepsi-Cola
says “the India marketing Team is the Pepsi world” It’s been
blood, toil, tears and sweat of all stake holders, Pepsi executives,
bottlers, ad agency, Hindustan Thompson Associates and Yes,
Sachin Tendulker and Shahrukh Khan and, “yeh dil still maange
more”

Ever since Pepsi uncorked its fizz- are you ready for the
magic? It did in styles .it was grand unveiling, much like the icon
Pepsi used back in 1932, to discover what brand stood for. The
icon never played cricket, it never got its hair burnt like Michael
Jackson, it never dated post spice like David Beckham ….. Pepsi
and P, the Pepsi cops. It was Pepsi, which was first to introduce a
marketing jungle, the first to foray into musical marketing. So what
they did way back then is still paying off.

- 12 -
 The Coke’s second coming changed the attitude pf Pepsi
towards the way it looked of the entire marketing battle and its
own existence in India. It became competitive; it started to believe
in direct attack. While coke may have found it difficult to find a
common theme that ran through all its advertising, it got
aggressive in India with its take over of parle brands ThumsUp,
Gold Spot and Limca. Another big blow, another time: Pepsi lost
out in its bid for the rights to the cricket world cup 1996.What
followed is history; the high – decibel, out-of-the box advertising
by Pepsi- “nothing official about it”

The real growth for both Pepsi and Coke can come from
increasing the market. Though the battles over market share
continue to rage and Hrithik Roshan and Shahrukh Khan will fight
it out, the future will belong to the one that has its eye on per capita
consumption. It’ll obviously be market growth over market share.

Looking at the different strategies adopted by both these

companies one can that Pepsi has adopted challenged strategy to
counter its ‘competitor’ the Coke. Whatever the outcome of the
clash between the soft drink giants. There is no doubt that both
Pepsi, that has declared bankruptcy twice in the past, and coke, that

- 13 -
launched as a caramel colored syrup in 1886.Will spring many
more surprises on the Indian consumer leaving him wondering
whether his cola is the “Right Choice” or whether “it’s the real
thing”?

- 14 -
 PROFILE OF HYDERABAD
BEVERAGES PVT .LTD

Pepsi mostly supplies its products through franchises. It has tie-

ups with the local bottling companies.

Hyderabad beverages Pvt .Ltd, is an operating franchises for

Pepsi foods India Limited since 1991, when Pepsi was launched in
Hyderabad on 7th march 1991.It undertakes the bottling and
distribution functions for the company. Mr. S.K. Jaipuria,
chairman, heads Hyderabad Beverages Pvt. Ltd.

Hyderabad Beverages Pvt. Ltd under takes production

operations such as “Bottling of soft drinks”. They have their own
products units. Hyderabad Beverages Pvt. Ltd, is also responsible
for local advertising and other promotional activities .The day to
day administrative activities is also carried out on an independent
basis, sales, marketing, and distribution of the product depends on
the sole discretion of Hyderabad Beverages Pvt Ltd.

Hyderabad Beverages Pvt Ltd. uses the indirect market

channel. It supplies its products through various outlets by the

- 15 -
retail system. It adopts 3-way market distribution for supply of
brands.

Market distribution of various brands of Hyderabad

Beverages Pvt. Ltd.,
1. City market
2. Up country markets [districts]
3. Credit outlets

Hyderabad Beverages Pvt. Ltd. uses almost the same type of

distribution channels in the various market with slight variations in
the mode of transportation etc. The distribution channels for
various markets can be outlined thus

1. Distribution Channels for city market:

Factory –carrying forward agents- Dealer or
distributor-retailer-consumer

2. Distribution channels for the country market:

Factory-Carrying forward agents-Local distribution-
Retailers-consumer.

3. Distribution channels for credit outlets:

- 16 -
 Factory-outlets-consumers

ORGANISATION PROFILE OF PEPSI:

Pepsi Company Inc., Limited was launched over a hundred

years ago, in the US, though it entered the international market
with a move to Russia only in 1959.

Today Pepsi is one of the largest Multinational companies

with a turnover of 22 billion dollars of allots business worldwide.
Pepsi Co Inc., Limited owns Pepsi foods.

Pepsi foods entered the Indian Market in 1990’s is a joint

venture with Voltas and Punjab Agro. In1992-1993 the total
investment in India Organics Ltd., Pepsi has introduced Rs 75
crores for pet bottles.

The head quarters of Pepsi foods is situated in down town

Delhi, since Pepsi’s market reach is small, the company plans to
bridge this gap quickly by adding its own bottling plants an at the
same time increasing the capacities of the existing plants.

- 17 -
 The company plans have 4 company-managed operations at
Mumbai, Kolkata, Chennai, and Ahmedabad. It has bottling
facilities (both owned & franchised) located in various parts of the
country. The company intends to spend RS. 900 crores or more in
lieu of its plans to increase its market share.

The company has three business divisions.

• Beverages
• Exports
• Foods

Pepsi foods Ltd., has its concentrate, Snacks, fruits

processing facilities in the Punjab state, Pepsi claims to be “The
worlds favorite salty snacks company always providing great value
to consumers.”

- 18 -
 AN OVERVIEW OF
CONSUMER BUYING BEHAVIOR

Consumer buying behavior refers to the buying behavior of

the final consumer, individuals and households and who buy the
goods and services for personal consumption.

The consumers for the selection of the soft drink either go for
brand loyalty or they choose a brand based on retailer’s advice.
There are few buyers who buy in bulk for parties. In this way the
individual might be trying to choose or cater to his perception of
his guests preference. A brand can convey up to six levels of
meanings

1. Attributes
2. Benefits
3. Values
4. Culture
5. Personality
6. User

Consumer is the heart of any marketing agency, hence

marketers are now spending money on consumers research that

- 19 -
includes the study of what they buy, when they buy, how often
they buy, and how often the consume or use it.

A MODEL OF BUYING BEHAVIOR:

A consumer’s decision to purchase a particular product or
service is the result of complex interplay of variables. Marketing
and environmental stimuli enter the buyer’s consciousness. The
buyer’s characteristics task decision process leads to certain
purchase decisions. The marketer’s task is to understand what
happens in the buyer’s black box or consciousness between the
arrival of outside stimuli and the buyers purchase decision
(buyer’s black box model). They must answer two questions-

1. How do the buyers characteristic- cultural, social,

personal, psychological influence buying behavior?

2. How does the buyer make purchasing decision?

Marketing Other Stimuli

Stimuli
Product Economic
Price Technological
Place Political
Promotion Cultural

- 20 -
 Buyer’s Black Box
Buyer Buyer
Charact- Decision
eristics process

Buyer’s Response
Product choice
Brand choice
Dealer choice
Purchase timing
Purchase amount

CHARACTERISTICS AFEECTING THE CONSUMER

BEHAVIOR:
Consumer behavior is affected by a host of variables ranging
from personal motivations, needs attitudes & values, personality
characteristics, socio-economic and cultural backgrounds, age, sex,
professional status to social influences of various kinds exerted by
family friends, colleagues and society as a whole. The
combinations of these various factors produce a different impact
on each one of us manifested in our different behavior as
consumers. Psychological factors such as individual consumer
needs and motivations, perceptions, attitudes, the learning process
and personality characteristics are the similarities, which operate

- 21 -
across the different types of people and influence their behavior.
Among the social influences affecting behavior we can classify the
influences of family friends, leaders and social class to which the
consumer belongs.

MODEL OF FACTORS INFLUENCING CONSUMER

BEHAVIOUR
B
CULTURAL
U
Culture SOCIAL Y
Sub-Culture
Social Class Reference PERSONAL E
groups
Family Personality PSYCHOLO- R
GICAL
Roles & Age & Life
Status cycle stages C
Motivation
Occupation
Perception H
Income
Learning
Lifestyle
Beliefs & A
Attitudes
R
A

A. CULTURAL FACTORS: These exert broadcast and

influence on consumer behavior.

- 22 -
1. Culture: The set of basic values, perception, wants and
behavior learned by a member of society from family
and other important institutions. Markets should always
try to spot cultural shifts in order to discover new
products that might be wanted.

2. Subculture: Each culture contains small subculture i.e.,

group of people with shared value system based on
common life experiences and situations.
Ex: Nationalities – Indian, Italian, American, and
European.

Religion – Hinduism, Jainism, Christianity, Islam.

3. Social Class: These are relatively homogenous and

enduring division in a society which are hierarchically
ordered and whose members share similar values,
interests and behavior such as upper, middle and lower
class.

- 23 -
B. SOCIAL FACTORS: A consumer’s behavior is also
influence by social factors like reference groups, family,
roles & status.

1. Reference Groups: A person’s reference group

consists of all the groups that have a direct or an
indirect influence on the person’s attitude or behavior.
These include primary group, secondary group,
aspirational group, dissociative group and opinion
leaders. The importance of reference group influence
varies across products and brands.

2. Family: Family members constitute the most influential

primary reference groups shaping up buyer’s behavior.
a. Family of orientation consists of one’s parents.
b. Family of procreation consists of one’s spouse
and children.

3. Roles & Status: A role consists of activities that a

person is expected to perform according to the persons
around him or her. Each role carries a status reflecting
the general esteem given to it by the society. People

- 24 -
 choose products that communicate their role and status
in society.

C. PERSONAL FACTORS: Consumer’s purchase decisions

are also affected by his personal characteristics such as age,
sex, and stage in family life cycle, his overall self-concept.

1. Age & Life Cycle Stage: People buy different goods &
services over their lifetime. Marketers often define
markets in terms of the life cycle stage.

2. Occupation: A person’s consumption pattern is

influenced by his/her occupation whether it include
blue-collar workers and white-collar workers.

3. Income: Borrowing power, attitude towards spending

verses saving, personal income determines the
purchasing motive of the customer.

4. Life Style: A person’s pattern of living as expressed by

his activities, interests and opinions influence consumer
behavior.

- 25 -
 5. Personality & Self Concept: By personality and self-
concept, we mean the person’s distinguishing
psychological foundations that lead to relatively
consistent and responses to his or her environment.

D. PSYCHOLOGICAL FACTORS: A person’s buying

choices are also influenced by four major psychological
factors – motivation, perception, learning, beliefs & attitudes.

1. Motivation: A person has many needs at any given

time. Some needs are biogenic and others are
psychogenic. These needs are useful for the marketer to
identify what generic level needs; his product is capable
of fulfilling and accordingly positions his product and
backs it up with relevant marketing inputs.

2. Perception: Perception is the process by which an

individual selects, organizes and interprets information
inputs to create a meaningful picture of the world.
There are three aspects of perception – selective
exposure, selective distortion, and selective retention.

- 26 -
 3. Learning: When people act, they learn. Learning
describes changes in an individual’s behavior arising
from experience.

4. Beliefs and Attitudes: Through acting and learning

acquit their beliefs and attitudes that is a descriptive
thought that an individual has about a product, service,
idea or practice is belief and enduring and learning to
act in a particular consistent way with regard to a given
object or idea is attitude.

CONSUMER DECISION PROCESS

A decision is the selection of an action from two or more
choices. There are five stages in buyers decision process-

1. Problem Recognition: The consumer buying process starts

when the buyer recognizes a problem or need. The buyer
senses a difference between his existing state and his actual
state desired. The need can be triggered by internal stimuli
like hunger, thirst or external stimuli like advertisement.

2. Information Search: An aroused consumer will be inclined

to search for more information through personal,

- 27 -
 commercial, public or experiential sources. Through
gathering information the consumer learns about competing
brands and their features. Competing brands and their
features. A company must strategies to get its brand into
consumer’s choice set.

3. Evaluation of Alternatives: Consumer evaluates product

judgments based on conscious and rational basis. The
consumer develops brand beliefs about where each brands
stands on each attribute i.e., brand image.

4. Purchase Decision: In the evaluation stage, the consumer

forms preferences among the brands in the choice set. The
consumer may also form an intention to buy the most
preferred intention and purchase decision –a) Attitude of
others. b) Unanticipated situational factors.

5. Post purchase Satisfaction Or Cognitive Dissonance:

After purchasing the product, the consumer will experience
some level of satisfaction or dissatisfaction. The marketer’s
job doesn’t end when the product is bought but continues
into the post purchase actions, post purchase product use and

- 28 -
 disposal. A dissatisfied consumer may either take public or
private action.

MODEL OF BUYER DECISION PROCESS

Problem Information Evaluation of

Recognition search alternatives

Attitudes of
others
Purchase Purchase
Decision intention
Unexpected
situational
factors

Post purchase
Behavior

- 29 -
 OBJECTIVE OF THE STUDY

The study has been conducted in twin cites and the

respondents chosen randomly. The sample size has been limited to
100, which may restrict the scope and complexity of the study. The
scope of the project could be broadened if the project duration is
extended and the team strength be raised. The primary objective of
the report is to study the attributes, which a consumer considers
important while taking decision to purchaser soft drink.

1. To find out the relative position of various brands in market.

2. To find out the top of the mind awareness level of soft drink
among consumers.
3. To find out the medium which is most effective in reaching
the consumers.
4. To find out the most popular point of purchase.
5. To identify the age group which consume the soft drink
more.
6. To know what are the factors, which influence towards brand
choice.
7. To identify the factors influencing the consumption pattern.

- 30 -
 RESEARCH METHODOLOGY

¾ RESEARCH DESIGN – It involves survey of

consumers, understanding the market and changing
trends by Data Survey

¾ DATA SOURCE – The primary data was collected

from the consumers and secondary data through various
mediums.

¾ RESEARCH INSTRUMENT – The research

instrument used was a questionnaire backed by personal
interview for data collection.

¾ SAMPLE SIZE – 100 for consumers.

¾ SAMPLE AREA – Sample size of 100 members

comprised of and different areas of twin cities.

¾ SAMPLING METHOD – Convenience and

judgmental.

- 31 -
 LIMITATIONS

9 The survey was conducted in twin cities only, so the data

collected can be generalized.

9 The survey was conducted in starting of summer, due to

which consumption of soft drink was influenced. So there
was a seasonal constraint.

9 The consumers/customers sample size is 100 (male-60 and

female-40), because of time and financial constraints. Hence
the data may not be representation on the entire population.

9 Even though every care is taken to formulate the

questionnaire, some errors may have been crept in.

- 32 -
 ANALYSIS & INTERPRETATION
1. AWARENESS OF BRANDS:

BRANDS MALE FEMALE

PEPSI 18 12
THUMS UP 22 15
COKE 7 3
MIRINDA 4 2
MAAZA 5 5
7 UP 2 2
SPRITE 2 1
TOTAL 60 40

AWARENESS OF BRANDS
S
O
F SPRITE
T
MAAZA FEMALE
D MALE
R
I COKE
N
K PEPSI
S
0 5 10 15 20 25

NO. OF RESPONDENTS

- 33 -
A high percentage of all brand awareness has been noticed and few
consumers were unaware of less popular brands.

2. MOST CONSUMED BRAND

BRANDS MALE FEMALE
PEPSI 16 7
THUMS UP 26 11
COKE 7 6
MIRINDA 1 2
MAAZA 2 7
7 UP - -
SPRITE 3 2

POSITION OF DIFFERENT BRANDS

N 30
O
. 25
O
F
R 20
E
S 15
P MALE
O FEMALE
N
10
D
E 5
N
T 0
PEPSI COKE MAAZA SPRITE

BRANDS

- 34 -
THUMS UP has been the favorite brand both among the
consumers of either sex, followed by PEPSI.

3. FACTORS INFLUENCING PURCHASE DECISION:

Attributes MALE FEMALE

AVAILABILITY 5 4
PRICE 3 3
TASTE 39 27
ADVERTISEMENT 3 3
FLAVOUR 9 4

PURCHASE INFLUENCING FACTORS

15% 8% 5% AVALIABILITY
5%
PRICE
TASTE
ADVERTISEMENT
67% FLAVOUR

The attributes accorded the highest priority are taste with 67% and
flavor & availability followed recording 15% & 8% respectively.

- 35 -
 4. BRAND PREFERENCES:

Ratings MALE FEMALE

EXCLEMENT 15 14
VERY GOOD 17 17
GOOD 28 9

RATING OF PREFFERED BRAND

25%
47% EXCELLENT
VERY GOOD
GOOD
28%

Most consumers have rated their preferred brand good but not very
good (or) excellent.

- 36 -
 5. FREQUENCY OF CONSUMPTION:

Frequency of MALE FEMALE

Consumption
DAILY 12 3
THRICE A WEEK 15 8
WEEKLY 12 13
OCCASIONALLY 14 13
SEASONALLY 6 4

FREQUENCY OF CONSUMING

10% 22% DAILY

23% THRICE A WEEK
WEEKLY
OCCASIONALLY
25%
20% SEASONALLY

Occasional consumption frequency has been found to be on a high

note. A transition has been identified in their frequency of
consumption from being consumed seasonally to being consumed
weekly.

- 37 -
6. BRAND SWITCHING:

Brand Switching MALE FEMALE

YES 34 24
NO 27 15

Reasons MALE FEMALE

Due to non-availability of regular 10 8
brand
Due to non-availability of chilled 6 2
drink
For tasting different flavor 15 11
Influenced by friends 3 3
Other reasons - -

- 38 -
 SHIFTING OF BRANDS

N 35
U
M
B 30
E
R 25
O
F
R 20
E YES
S
15 NO
P
O
N 10
D
E
N 5
T
0
MALE FEMALE

GENDER

Brand switching have been identified and the primary reason has
been the propensity to taste different flavors.

- 39 -
7. PACKING:
Packing MALE FEMALE
200 ml 27 16
300 ml 5 7
500ml 3 -
1 lt 3 2
1.5 lt 8 3
2 lt - 1
TINS 3 2
TETRA PACK - 1
FOUNTAIN GLASS 1 3

TYPE OF PACKAGE
% 30
O
F 25
R
ES 20
P 15
O
N 10
D
E
5
N 0
200 ml

500 ml

1.5 lt

FOUNTAIN
TINS

MALE
FEMALE

- 40 -
200 ml is fast moving quantity, 300 ml is loosing popularity.

8. PRICE RATINGS:

Rating MALE FEMALE

HIGH 24 14
REASONABLE 35 25
LOW 1 1

40
30 NO. OF
RESPONDENTS
20
10
0 MALE
HIGH LOW
RATINGS
MALE
FEMALE

Majority consumers have said the price as reasonable and

considerable chunk have rated price as being high which is of
concern.

- 41 -
9. EFFECTIVE MEDIUM FOR ADVERTISEMENT:

MEDIUM MALE FEMALE

NEWS PAPER 9 4
TELEVISION 43 32
MAGAZINE 1 -
HOARDINGS 1 2
POSTERS 2 2
GLOW SIGN 3 1
BOARDS

N 45
U
M 40
B
E 35
R
O
30
F
R
25
E 20
S
P 15
O
N 10
D
E 5
N
T
0
NEWS MAGAZINE POSTERS MALE
PAPERS FEMALE
MEDIA TYPE

- 42 -
TELEVISION has been rated the most effective medium with
NEWSPAPERS (print media) following up.
10. ADVERTISEMENT APPEAL :

AD APPEAL MALE FEMALE

MODEL/CELEBRITY IS 12 7
GOOD
SLOGAN IS GOOD 18 13
THEME IS GOOD 16 12
SPONSERED EVENT IS 4 5
GOOD
EXECUTION IS GOOD 9 4

- 43 -
 LIKING ASPECT IN AN AD

15% 20%

7%

27% 31%

MODEL/CELEBRITY IS GOOD
SLOGAN IS GOOD
THEME IS GOOD
SPONSERED EVENT IS GOOD
EXECUTION IS GOOD

Good catchy slogan is the most likable Ad appeal, with theme of

concept next most appealing.

11. PHRASE INFLUENCE:

Phrase Influence MALE FEMALE

YES 53 36
NO 7 4

- 44 -
Brands MALE FEMALE
PEPSI 19 4
THUMS UP 10 6
COKE 7 8
MIRINDA 4 3
MAAZA 2 1
7 UP 1 -
SPRITE 10 4

IMPRESSIVE SLOGANS

60
50
40
NO. OF
30
RESPONDENTS
20
10
0
MALE FEMALE YES
NO

- 45 -
 MOST LIKED SLOGANS
[Male Respondents]
10
19
21

4
7 10
PEPSI THUMS UP COKE MIRINDA MAAZA 7 UP SPRITE

MOST LIKED SLOGANS

[Female Respondents]

1 4
3 14

8
6
PEPSI THUMS UP COKE MIRINDA MAAZA 7 UP SPRITE

Present slogans are found to be catchy hence impressive. PEPSI

slogan is voted the most effective, THUMS UP & COKE followed
respectively.

- 46 -
 SUGGESTIONS

Keeping in view the limitations and findings the following

suggestions are put forth.
™ Since taste is the most important criteria the drink can be
made palatable to Indian taste by bringing out more
effervescent version of price.

™ More knowledgeable and health conscious consumers didn’t

consider the drink a good value for money.

™ Compulsive buying has been found generating negative

feelings and is weaving away potentials that are not loyalists.

™ Diet conscious consumers should be provided low caloric

drinks at reasonable cost.

™ Rusting of crows has been noticed which led to broken edges.

™ Bottling plant are to be set hygiene standards ensuring the

brand image does not suffer any onslaught.

- 47 -
™ Instead of tall promises, on the spot gifts is preferred
considering Indian culturing.

™ Frequent buyers should be recorded and rewarded

accordingly.

™ There has been a demand for umbrellas from retailers, which

were not available from the company.

™ Pepsi clubs should be established in college canteen thus

promoting his brand also sponsoring of college fete at various
levels would establish the brand among youth, as the habits
tend to continue for life.

™ Ad films are displayed in film shows, as switching problem

doesn’t arise in theaters.

™ Inadequate product promotion in case of 7-up has been

noticed which could be a good potential.

- 48 -
 CONCLUSIONS

• From the findings of the study it can be inferred that the

demand for soft drinks is occasional with the maximum sales
being in summer.

• 15-24 age group contributes a large percentage of sales and

hence younger generation is the focus of soft drink
consumption.

• Television is the most effective medium followed by

newspapers.

• Taste has been found to be the most important factor

influencing purchase decisions High brand awareness has
been noticed among consumers.

• Bakeries have grown to be the popular outlets for soft drink

consumption.

• The company’s catchy slogan is the most appealing in ad

films.

- 49 -
• Sales promotion programs of the company are popular
among consumers with gifts being the most preferred.

• The company’s brand has been rated low on fuzziness and

hence less suitable to south Indian palate accustomed to
spices.

• 300 ml pack is popular among consumers, 500 ml, 2 lt.

Disliked.

• Brand switching is prevalent among majority consumers.

• Consumers preferred film stars and cricketers endorsing their

preferred brand.

• Retailers were reluctant for exclusive outlets.

• Retailers rate behavior of company’s sales people very good.

• Retailers abstained from recommending any brand of soft

drink to customers.

- 50 -
 APPENDAGES
QUESTIONNARIE
FOR CUSTOMERS/CONSUMERS

1. Which brands of soft drinks are you aware of?

Pepsi [ ] Thums Up [ ] Coke [ ] Mirinda [ ]
Maaza [ ] 7 UP [] Sprite [ ] All []

2. Which brand of soft drink you have consumed the most?

Pepsi [ ] Thums Up [ ] Coke [ ] Mirinda [ ]
Maaza [ ] 7 UP [] Sprite [ ]

3. What attributes and factors influence your purchase of soft

drinks? (Order of Preference).
Availability [] Price [ ] Taste [ ]
Advertisement [ ] Flavor [ ]
4. How do you rate the preferred brand of soft drink?
Excellent [ ] Very Good [ ] Good [ ]
5. How often do you consume soft drinks?
Daily [] Thrice a week [ ] Weekly [ ]
Occasionally [ ] Seasonally []
6. Do you shift from one brand to another brand?
Yes [ ] No [ ]

- 51 -
 If Yes, state the reason:
a) Due to non-availability of your regular brand [ ]
b) Due to non-availability of chilled drink []
c) For tasting different flavors []
d) Influenced by friends []
e) Other Reasons __________________________

7. Which is the package that you prefer most?

200ml [ ] 300ml [ ] 500ml [ ] 1 Litre [ ] 1.5 Litre [ ]
2 Litre [ ] Tins [ ] Tetra Pack [ ] Fountain Glass [ ]
8. How do you rate the present price of soft drinks?
High [ ] Reasonable [ ] Low [ ]
9. Rank the media in the order of effectiveness for advertising
of soft drinks
Newspapers [ ] Television [ ] Magazines []
Hoardings [ ] Posters [] Glow Sign Boards [ ]

10. What appeals to you in the advertisement of the

preferred brand?
Model/Celebrity is good [ ] Slogan is good [ ]
Theme of concept is good [ ] Sponsored event is good [ ]
Execution (Photography/still) is good [ ]

- 52 -
11. Do you think the present slogans are impressive?
Yes [ ] No [ ]
If Yes, which of the following
PEPSI Yeh Dil Mange More Aahaa! []
COKE Jo Chahe Ho Jaye Coca Cola Enjoy! [ ]
THUMS UP Taste the Thunder []
MIRINDA Zor Ka Jhatka Dheere Se Lage []
SPRITE Dikhavon pe na jao, apni akal lagao [ ]
MAAZA Taaza Mango, Maaza Mango []
7 UP Cool, Light & Easy []

NAME OF RESPONDENT: ________________________

GENDER: Male [ ] Female [ ]
OCCUPATION: ___________ EDUCATION: ___________
INCOME APPROX: ________________________________
ADDRESS: _______________________________________
_______________________________________
_______________________________________
Ph No: Off: _____________ Res: __________________

Please ‘tick’ your age

10 – 15 15 - 24 25 - 34 35 & above

- 53 -
BIBILOGRAPHY

1. Principles of Marketing

………….Philip Kotler & Gary Armstrong.

2. Marketing Management

………….V.S. Ramaswamy & S. Namakumari

3. Marketing Research

………….Tull Donald & Hawkins

4. Consumer Behavior

…………Schiffman Leon & Kanuk Leslie

5. Internet:

………..www.pepsico.com

………..www.pepsi.com

6. Newspaper:

………..The Economic Times

- 54 -