CHAPTER- I

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INTRODUCTION
Consumer behavior has changed dramatically in the past decade. Today, consumer can order online-customized products ranging from sneakers to computers. The term consumer behavior defined as the behavior that consumers display in searching for, purchasing, using evaluating and disposing of products and services that they expect will satisfy their needs. Consumer behavior focuses on how individuals make decisions to spend their available resources (time, money, effort) on consumption related items. That include what they buy it, how often they use it, how they evaluate it after the purchase, the impact of such evaluations on future purchases, and how they dispose of it. Clearly, as individuals, we are all unique. However, one of the most important constants among all of us, despite our differences, is that, above all, we are consumers. We use or consume on a regular basis food, clothing, shelter, transportations, education, equipment, vacations, necessities, luxuries, services and even ideas. As consumers, we play a vital role on the health o the economy local, national, and international. The purchase decisions we make affect the demand for basic raw materials, for transportation, for production, for banking; they affect the employment of workers and the deployment of resources, the success of some industries and the failure of others. In order to succeed in any business, and especially in todays dynamic and rapidly involving market place, marketers need to know everything they can about Consumers what they want, what they think, how they work, how they spend their leisure time. They need to understand the personal and group influences that affect consumer decisions and how these decisions made. A consumer is the ultimate use of a producer of service. The overall consumer market consists of all buyers of goods and services for personal or family use, more than 270 million people (including children) spending trillions of dollars in the United States as of the late 1990s. Consumer behavior essentially refers to how and why people make the purchase decisions they do. Marketers strive to understand this behavior so they can better formulate appropriate marketing stimuli that will result in increased sales and brand loyalty. There are a vast number of goods available for purchase, but consumers tend to attribute this volume to the industrial worlds massive production capacity. Rather, the giant known as the marketing profession is responsible for the variety of goods on the market. The science of evaluating and
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influencing consumer behavior is foremost in determining which marketing efforts will be used and when. To understand consumer behavior, experts examine purchase decision processes, especially any particular triggers that compel consumers to buy a certain product. For example, one study revealed that the average shopper took less than 21 minutes to purchase groceries and covered only 23 percent o the store, giving marketers a very limited amount of time to influence consumers and 59 percent of all supermarket purchasers were unplanned. Marketers spend a great deal of time and money discovering what compels consumers to make such on-the-spot purchasers. Market researchers obtain some of the best information through in-store research, and will often launch new products only in select small venues were they expect a reasonable test of the products success can executed. In this manner, they can determine whether a products success is likely before investing excessive company resources to introduce that product nationally or even internationally. The most obvious is for marketing strategy i.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 advertisement late in the afternoon. By understanding those new products are usually initially adopted by a few consumers and only spread later, and the only gradually, and to the rest of the population. We learn that companies that introduce new products must well finance. So that they can stay afloat until their products become a commercial success and it is important to please initial customers, since they will in turn influence many subsequent customers brand choices. A second application is public policy. In the 1980s, Acutance, a near miracle cure for acne, introduced. Unfortunately, Acutance resulted in severe birth defects if taken by pregnant women. Although physicians 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 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 Centers for Disease Control trying to reduce the incidence of transmission of diseases through illegal drug use. The best solution, obviously, would be if we would get illegal drug users to stop. This,
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however, deemed infeasible. It was also determined that the practice of sharing needles too ingrained in the drug culture to be stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbein created a campaign hat encouraged that cleaning of needles in bleach before sharing them, a goal that believed to be more realistic. As a final benefit, studying consumer behavior should make us better consumers. Commonsense suggests, for example that if you buy a 64 liquid once 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. There are several units in the market can analyze. Our main thrust in this course is the consumer. However, we will also need to analyze our own firms strengths, 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, and awareness of its brands) against pressures it faces from the market. 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.

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THEORITICAL FRAME WORK ON CONSUMER BEHAVIOR

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INTRODUCTION TO CONSUMER BEHAVIOR CONSUMER BEHAVIOR A THEORETICAL STUDY

CB refers to the actions and decision processes of people who purchase goods and services for personal consumption James F. ENGEL, Roger D. Blackwell and Paul Miniard. CB reflects the totality of consumers decisions with respect to the acquisition, consumption, and disposition of goods, services, time, and ideas by human decision-making units (over time) Wayne D. Hoyer. The behavior that consumers display in searching for purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs Leon. Schiff Man and Leslie Kanuk.

Selected Consumer Behavior Roles:

Role Initiator Description The initiator is the individual who determines that some need or want not fulfilled and authorizes a purchase to rectify the situation. Gatekeeper An influence the family is processing of information. The gatekeeper has the greatest expertise in acquiring and evaluating the information. Influencer The influencer is a person who, by some intentional or unintentional word action, influences the buying decision, actual purchase, and/or the use of the product or service. Decider The person or persons who actually determine which product or service will choose. Buyer User(r) The buyer is an individual who actually makes the purchase transaction. The user is a person most directly involved in the use or consumption of the purchased product.

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THE DIVERSITY OF CONSUMER BEHAVIOUR

Human being differs from one to another. It is not easy to predict human behavior. Human beings differ in their taste, needs, wants, and preferences. However, one constant thing is that, we all are consumers. Consumer behavior is a vast and complex subject. Understanding Consumer behavior and knowing consumers are not very simple. It is almost impossible to predict with one hundred per cent accuracy how consumer(s) will behave in a given situation. Marketers are interested in watching people shopping, flirting, parading, playing, and entertaining, as they are keenly interested in the wide variety of behavior that they display. The efforts of all marketers are to influence the behavior of consumers in a desired manner. The success or failure in this pursuit determines the difference between the success and the failure of the marketing efforts or even the business itself.

MODEL OF CONSUMER BEHAVIOUR

BUYERS BLACK BOX BUYERS CHARACTERISTICS Problem recognition Product Price Place Promotion Economical Technological Political Cultural Cultural Social Personal Psychological Information search Evaluation Decision Post purchase behavior Brand choice Dealer choice Purchase Timing Purchase Amount BUYERS DECISION PROCESS BUYERS DECISION

OUTSIDE STIMULUS MARKETING STIMULI OTHER STIMULI

This is a simple model of consumer behavior. When consumers make a decision for a purchase, they do not just go the shop and purchase. The above-mentioned factors influence the decision of the buyer. There are some outside stimulus, as well as internal factors, which influence the decision. The internal factors known as the Buyers Black Box does not see.
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MAJOR FACTORS INFLUENCING CONSUMER BEHAVIOUR

Culture: Values and beliefs in which one is born and grows up. Sub-Culture: Differences in life-style, food-habit between different parts of India. India as well as has one culture and again there is different sub-culture in different parts of India. Even a particular age group, male, female segments, etc., are also known as sub-culture. Social Class: Economics, caste, profession.

Reference Group: The group of people whom one consults before purchasing something; family, friends etc. Family: It defined as two or more persons related by blood, marriage, or adoption who reside together. Although families sometimes referred to as households, not all households are families. For example, a household might in clue individuals who neither are nor related by blood, marriage, or adoption, such as unmarried couples, family friends, roommates, or boarders. However, within the context of CB, households and family usually treated as synonymous and we will continue with this convention.

CULTURE SOCIAL CULTURE REFERENCE GROUPS SUB-CULTURE PERSONAL

AGE AND LIFE CYCLE STAGES OCCUPATIONS ECONOMIC CIRCUMSTANCE S LIFE-STYLES PERSONALITY AND SELF CONCEPT PSYCHOLOGICAL MOTIVATION PERCEPTION BUYER LEARNING BELIEFS AND ATTITUDES

FAMILY

SOCIAL CLASS

ROLES AND STATUS

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Functions of the family:

Economic well-being: Economic security, providing financial means to its dependents is unquestionably a basic family function. Emotional support: Love, affection, support, intimacy, are and courage. Suitable family life styles: Another important family function in terms of consumer behavior is the establishment of a suitable life-style for the family. Upbringing, experience, and the personal and jointly held goals of the spouses determine the importance placed on education or career, on reading, on television viewing, on the learning of computer skills, on the frequency and quality of dining out, and on the selection of other entertainment and recreational activities. Socialization of family members: It encompasses young children and adults, and is a central function. In the case of young children, this process includes imparting to children the basic values and modes of behavior, which are consistent with the culture. These generally include moral and religious principles, interpersonal skills, dress, and grooming standards, appropriate manner and speech and the selection of suitable educational and occupational or career goals.

(a)Traditional Family Life Cycle:

Stage-1: Stage-2: Stage-3: Stage-4: Stage-5: Bachelorhood - Young single adult living apart from parents. Honeymoons Young married couple. Parenthood Married couples with at least one child living at home. Post-parenthood An older married couple with no children living at home. Dissolution One surviving spouse.

(b) Non-Traditional Family Life Cycle Stages:

Childless Couple: It is increasingly acceptable for married couples to elect not to have children. Contributing forces are more careers oriented married women and delayed marriages. Couples who marry late in life (in their late 30s or later): More career oriented men and women and greater occurrence of couples living together living together.

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Couples who have first child late in life (in their late 30s later): Fewer children. Emphasis on life styles. Single Parent-1: Single Parent-2: Single Parent-3: High divorce rates contribute to a portion of single parent households. Young man and woman who have one or more children out of wedlock. A single parent who adopts one or more children.

Extended Family:

Young single adult children who return home to avoid the expenses of

living alone while establishing their careers. Divorced daughter and son returning home. Newlyweds living with in-laws.

Non-Family Households:
Unmarried Couples: Increased acceptance of heterosexual and homosexual couples. Divorced person (Non-Children): Men and women who never marry. Widowed person (Most are elderly): Longer life expectancy, especially for woken, means moreover 75, single person households.

BUYING BEHAVIOUR:
Complex Buying Behavior: Consumers are highly involved in a purchase and aware of significant differences among the brands. This is usually the case when the product is expensive, bought infrequently, and risky and highly self- expressive. Typically, the consumers do not know much about the product category and have much to learn. Example: Personal Computers.
High volume Low involvement COMPLEX BUYING BEHAVIOUR Significant VARIETY SEEKING BUYING BEHAVIOUR High involvement

Differences

DISSONANCE REDUCING BUYING BEHAVIOUR

HABITUAL BUYING BEHAVIOUR

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Dissonance- Reading: Sometimes, the consumer is highly involved in a purchase but sees little difference in the brands. The high involvement is because the purchase is expensive, infrequent, and risky. Example: Carpets. Habitual Buying Behavior: Many products have bought under conditions without consumer involvement and the absence of significant brand differences. Consider salt. Variety Seeking Buying: Some buying situations have characterized by low consumer involvement but significant brand differences. Hence, consumers often do a lot of brand switching. Consumers do the brand switching for the sake of variety rather than dissatisfaction. Example: Potato chips.

BUYERS MOTIVATION AND MASLOWS THEORY:

What motivates a buyer? The earliest understanding of the rationale of buyer behavior was providing by the well-known economist Adam Smith. According to him, a human being is a rational individual. He or she evaluates various alternatives and will buy or select alternatives where the marginal utility is more than the marginal price he or she paid for it. Consider the case of Priti, a homemaker. After spending a few hours on her shopping, she is tired and walks over to a nearby restaurant. She has the choice of buying a fruit juice, a soft drink a tea or a coffee. A glass of fresh fruit juice costs her Rs.7.50/- a soft drink also costs her Rs.7.509/- and a tea or coffee costs Rs.3.50/-. Now if she decides to buy a soft drink, then the utility of these soft drinks is more than the marginal price she is paying to get it. In this case, she is paying to get it. In this case, she is paying almost Rs.4.00/- more than a cup of tea or coffee. The utility of the soft drink to her at this time is more than tea or coffee or fruit juice. The assumption in the economic version of buyer behavior is that the lowest priced product will sell, as its marginal utility will always be higher than others will. Price therefore is the critical factor in determining customer choice. Another assumption is that all products are alike and no differentiation is possible between them. Finally, the customer is aware of the alternatives available to him to her. The economic model can explain human behavior to a limited extent only because humans are not always rational beings. We all have known to indulge in acts and shopping
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behavior, which are not necessarily rational. For example, a young man who loves his wife very dearly, and works in a different town aw2ay from his wife and family, may make a long distance call almost every day not caring for the cost. The economist would like to us to believe that this young man will consider the marginal cost and utility of making a long distance call and writing a letter (buying postage and stationery). Besides, rather never is the information on alternatives complete. Marketers create differentiation ion their products. Branding is common in manufactured consumer goods. Moreover, each brand communicates a different image. However, the limits to product differentiation through technology, features, packaging, and intangibles, like guarantee or warrantees have reached. In todays wo rld or technology and standardization, there is hardly and differentiation between two brands of the same product on a feature-to-feature basis. Price then becomes important, yet not the crucial factor. Hence, the economic model does provide a limited but useful insight into buyer behavior.

PSYCHOLOGICAL FACTORS:
To get a better understanding of consumer behavior, we need to examine three major psychological factors. These are:

(a) Motivation (b) Learning (c) Perception

MOTIVATION:
The well-known psychoanalyst, Sigmund Freud, provided the earliest explanation of human motivation. According to him, man learns from his environment. Taking a cue from a child, Freud said that a child is uninhibited in his behavior until the time her or she is taught eh worldly way by him or her parents. Gradually, as the child grows, he starts behaving in a manner, which is socially acceptable. This obviously means that his basic urges and instincts have suppressed and what we see is the socially approved behavior pattern. Freud says that the human psyche would understand as comprising of Id, Ego and superego. It is the reservoir of all
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the basic instincts and urges whereas the superego consist of socially approved behavior patterns. Ego is the conscious self and often acts as a balancing wheel between the Id and the Superego. Freud also believed that the most basic instinct that has suppressed is sex and he traces much of human behavior to this motive. For example, the way a person dresses is often to attract the opposite sex. The problem with Freudian theory it has too much focused on sexual need. Not allhuman behavior is sex-motivated. Often, the need to influence others or the need for power is an important need guiding human behavior. Some products tend to give this power to individuals. Credit cards, for example, give the individual to influence others as in most cases it gives to him/her a higher social status. Abraham Maslow provided another understanding and a more comprehensive view. According to Maslow, all individuals have needs, which have placed in a hierarchy as shown below

SELF

ESTEEM

AFFILIATION

SECURITY NEEDS

BASIC NEEDS

Maslows Hierarchy of Need

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According, to Maslow, human beings first satisfy their lower order needs, i.e., basic and security needs before moving up the hierarchy to satisfy the needs for esteem and selfactualization. Applying Maslows theory, we find that we can have different groups of customers with different needs buying products. Consider for example, the case of toilet soap. An individual, motivated by basic need, may just buy nay soap so long as it serves the core need of cleaning. May be to him at this point, the price is important. However, an individual high on belonging or affiliation or esteem may look for premium priced soap. He or she would look for fragrance, shape, packaging, brand name, lathering effect, and the like, before selecting the brand. Modern cars, do-it-yourself kits, or lean-by-yourself are some of the products that satisfy esteem and self-actualization needs. It may recall the esteem need is a learned psychological need while security is a learned physiological need. Marketers often tend to invoke the esteem need of the customer. Nothing illustrates this better than the Onida campaign, which has centered on the envy concept. The contribution of Maslows theory is that is helps the marketer to segment his market and develop product-marketing strategies accordingly.

CONSUMPTION AND POST-PURCHASE BEHAVIOUR Post-Purchase Evaluation

After purchase, the consumer also engages in an evaluation of the purchase decision. Because the consumer is uncertain of the wisdom of his decision, he rethinks this decision in the post-purchase stage. There are several functions, which this state serves. First, it serves to broaden the consumers set of experiences stored in memory. Second, it provides a check on how well he is doing as a consumer in selecting products, stores, and so on. Third, the feedback that the consumer receives from this stage helps to make adjustments in future purchasing strategies.

Consumer Satisfaction / Dissatisfaction

Once consumers purchases and use of product, they may then become either satisfied or dissatisfied with it. Research has uncovered several determinants that appear to influence satisfaction, including demographic variables, personality variables, and expectations to be more
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satisfied. Higher education tends to be associated with lower satisfaction. Men and tend to be more satisfied than women. The more confidence one has in purchase decision making and the more competence in a given product area, the greater ones satisfaction tends to be. There is also greater satisfaction when the relevant others are perceived to be more satisfied. Persons who are more satisfied with their lives as a whole, that is, by persons with more favorable attitudes toward the consumer domain, the market place, business firms, and consumerism also indicate higher levels of products satisfaction.

The interaction between expectations and actual product performance produces either satisfaction or dissatisfaction. However, there does not appear to be merely a direct relationship between the level of expectations and level of satisfaction. Instead, a modifying variable known as the disconfirmation of expectations thought to be a significant mediator of this situation. When a consumer does not get what is expected, the situation is one of the disconfirmation occurs when what is received is better than expected, and a negative disconfirmation occurs when things turn out worse than anticipated. Thus, any situation in which the consumers judgment has proven wrong is a disconfirmation. Confirmation occurs if the expectations of performance have met.

Consumer Complaint Behavior

Dissatisfaction Occurs

Voice Responses e.g., seek redress from seller: no action

Private Responses e.g., word of mouth communication

Third party Responses e.g., take legal action

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Dissonance:
Cognitive dissonance occurs as result of a discrepancy between a consumers decision and the consumers prior evaluation. From a review of research findings on cognitive dissonance, it appears that dissonance is likely to occur under the following conditions. Once a minimum threshold of dissonance tolerance had passed. That is, consumers may tolerate a certain level of inconstancy in their lives until this point reached. The action is irrecoverable. For instance, when the consumer purchases a new car, there is little likelihood that he will be able to reverse his decision and get his money back. Unselected alternatives have desirable features. There are several desirable alternatives. Todays car buyer, for example has an abundance of choices among similar attractive models. In fact, research indicates that those consumers who experience greater difficulty in making purchase decisions, or who consider a wider range of store and brand options, more likely to experience greater magnitudes of post purchase dissonance. Available alternatives are quite dissimilar in their qualities. For instance, although there are many automobile models, each one may have some unique characteristics. The buyer is committed to his decision because it has psychological significance. A large and important living room furniture purchase is likely to have great psychological significance to the buyer because of its dramatic reflection of ones decorating tastes, philosophy, and life style. Ego involvement will be quite high. There is no pressure applied to the consumer to make the decision. If the consumer is subject to outside pressure, he will do what he has forced to do without letting his own viewpoint or preference has really challenged. It is clear that dissonance is likely to be the strongest for the purchase of durables, although it can exist for almost every purchase.

DISSONANCE REDUCTION:
(I)
Change Product Evaluation: One of the ways consumers seek to reduce dissonance is to reevaluate product alternatives. This accomplished by the consumers enhancing the attributes of the products selected while decreasing the importance of the unselected
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products attributes. That is, consumers seek to polarize alternatives in order to reduce their dissonance. (II) Seeking New Information: A second way consumers may reduce dissonance is by seeking additional information in order to confirm the wisdom of their product choice. According to dissonance theory, dissonant individuals would expect actively avoid information that would tend to increase their dissonance and seek information supporting their decision. (III) Changing Attitudes: Because of dissonance, the consumer may change his attitudes to make them consonant with his behavior.

PRODUCT DISPOSITION
PRODUCT After Useful Life

Keep It

Get rid of it permanentl y

Get rid of temporarily

Use it to serve original

Rent it

Loan it

Convert to serve new purpose

Throw it away

Give it way

Trade it

Sell it Direct to consumer

Store it

To be (re) sold To be sold

Through middleman To Middleman

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CONSUMER BUYING PROCESS

Problem Purchase Recognition Behavior

Information

Evaluation of

Purchase

Post-

Search

Alternatives

Decision

A Basic Model of Consumer Decision Making

Post Problem Information Alternative Purchase Purchase

Motivation

Perception

Attitude

Integration

Learning

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Consumers go through a five- stage buying decision process:

(1) Need recognition. (2) Information search. (3) Evaluation of alternatives. (4) Purchase decision and (5) Post-purchase behavior. The consumer selects an involvement level or how much effort to exert in satisfying a need. The more effort exerted, the higher the involvement. For some purchases, consumers may go through these stages very quickly or may actually even skip stages or reverse some of the steps. Most buying decisions for products sold in supermarkets, drugstores, and discount stores are low involvement. These products have close substitutes and are relatively low-priced. The consumer will be more involved when he or she lacks information about the purchase, views the product as important, and thinks that the product has considerable social importance, and sees the product as having a potential for providing significant benefits. Need recognition occurs when buyers perceive a significant difference between their actual state and their desired state. Marketers are very interested in the factors that trigger a conscious recognition of a need. After the need has triggered, consumers search for information that will satisfy the need. This may be as simple as a memory scan or as complex as an extensive search. In other words, the information search may be internal (the consumer scans his or her memory for alternatives that would satisfy the need) or external (the consumer actively engages in a search for information that would assist in the decision). In an active search, consumers are very likely to read ads (commercial resources) and articles (public sources), talk to friends and relatives (personal sauces), and visit a store (experiential sources). Marketers are interested in the kinds of sources searched by consumers. The information search leads the consumer to evaluate the alternatives in order to reach a purchase decision. The evaluation of alternatives involves establishing the criteria with which to evaluate each alternative before making a purchase decision. Often, a consumers evaluation may be incorrect due to inexperience are biased information. Marketers must monitor choice criteria in order to identify changes and to correct any misconceptions.

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The purchase decision is a series of related decisions that consumers must make before making a purchase. These decisions include such things as the specific features of the product attributes, where and when to make the actual purchase, how to take possession, and the method of payment. Patronage motives have determined by such factors as location, convenience, and speed of service, merchandise accessibility, prices, merchandise assortment, services, offered, and sales personnel. Successful marketers evaluate their customers patronage motives and carefully design the shipping experience accordingly. The purchase process does not end with the purchase. Post-purchase behavior can influence future purchases and what the buyers tell others about the product. You may recommend the brand to everyone who asks you about your purchase. On the other hand, you may tell everyone about your unhappy experience with the product. In many purchases, consumers may experience anxieties known as cognitive dissonance. This occurs anytime there is inconsistency in a persons cognition such as knowledge, attitudes, beliefs, and values. Each product considered by the consumer has both advantages and disadvantages. Thus, the

purchased producer has both advantages and disadvantages. The rejected products have some advantages. Given the importance of post-purchase behavior in influencing future purchases, marketers want to help to reduce dissonance. They can reassure buyers through their advertising and personal selling, while giving quality service after the sale.

ONLINE DECISION-MAKING IN CONSUMER PURCHASE PROCESS:

Consumers keep making decisions to buy the products of their choice. The steps included in the decision-making are the same as discussed earlier. 1. Problem recognition 2. Information search 3. Evaluation of alternatives 4. Purchase 5. Post-purchase behavior.

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Decision making, as we have seen earlier, influenced by the internal determinants, which include learning, memory, personality, self-concepts, attitude motivation, and involvement. The external determinants consist of cultural and sub-cultural influences, social group influences, family influences, social influences, and other influences. External and internal influences, thus, together influence the decision-making process and most customers follow these steps in logical manner. E-Business enhances this process, and saves the time of the consumer by providing all the relevant information on the internet that is required.

Problem Recognition
The consumer recognizes a problem when there is a gap between the existing and the desired position in the use of a product. A number of factors may cause this gap and it has to reduce for the satisfaction of the consumer. E-business provides the customer with more information regarding products and services. The customer, therefore, has a better understanding of the solving of these problems and starts demanding products that were earlier not available locally. He has higher aspirations and fulfils needs in a better way. For example, microwave ovens and automatic dishwasher, which were not available locally, now made available to the Indian consumers.

Information Search and the evaluation of alternatives

Once the problem is recognized, the customer can find the alternatives to solve the problem on the computer. It gibes sufficient information to help a consumer to choose. It provides many alternatives which can also be evaluated by mathematical models in the case of extensive problem solving, where more money and time is at stake. The evaluation of

alternatives can do speedily, and the advantages and the disadvantages of various brands and products can recognize. This also depends on the weight age given to the different desired attributes in a product making assumption on a comparative scale. The internet can give comparative charts for making the evaluation easier and rational. The computer can also help in deciding the choice heuristics (rules that guide that decision in area of high probability). Information processing becomes easier and the area of information has enlarged greatly.

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Purchase
The E-consumer is a fully informed consumer and is aware of the various products offering by all the competitors. His purchase decision cannot influence easily. He takes rational decisions and usually decides to go for a product that offers good value for money. He also knows the advantages and the disadvantages of when to buy, how to buy, from where to buy, what to buy, and from whom to buy.

Post-Purchase Behavior
After using, the product/ service consumers can electronically interact with the manufacture or marketer giving valuable feedback. The critical feedback is to the company regarding the improvement of the product. If the customer is dissatisfied, he may communicate his anger against the company to lakhs of people worldwide instantly this may affect the reputation and good will of the company and tarnish its image. A satisfied customer acts as the best advantage and promotional means of worldwide publicity at no cost. The theoretical study of consumer behavior cannot overlook and remains an important aspect, in spite of the development of E-business. The theoretical framework of consumer behavior has to understood and applied in the applications of E-business for proper marketing results. E-business does not replace, but supplements, the theoretical foundation of consumer behavior. Consumers go through a five-stage buying decision process: (1) Need recognition. (2) Information search. (3) Evaluation of alternatives (4) Purchase decision and (5) Post-purchase behavior. The consumer selects an involvement level or how much effort to exert in satisfying a need. The more effort exerted, the higher the involvement. For some purchasers, consumers may go through these stages very quickly or may actually even skip stages or reverse some of the steps. Most buying decisions for products sold in supermarkets, drugstores, and discount stores are low involvement. These products have close substitutes and are relatively low-priced. After the need triggered, consumers search for information that will satisfy the need. This may be as

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simple as a memory scan or as complex as an extensive search. In other words, the information search may be internal (the consumer scans his or her memory for alternatives that would satisfy the need) or external (the consumer actively engages in a search for information that would assist in the decision). In an active search, consumers are very likely to read ads (commercial sources) and articles (public sources), talk to friends and relatives (personal sauces), and visit a store (experiential sources). Marketers are interested in the kinds of sources searched by consumers. The information search leads the consumer to evaluate the alternatives in order to reach purchase decision. The evaluation of alternatives involves establishing th4e criteria with which to evaluate each alternative before making a purchase decision. Often, a consumers evaluation may be incorrect due to inexperience are biased information. Marketers must monitor choice criteria in order to identify changes and to correct any misconceptions. The purchase decision is a series of related decisions that consumers must make before making a purchase. These decisions include such things as the specific features of the product attributes, were and when to make the actual purchase, how to take possession, and the method of payment. Patronage motives has determined by such factors as location, convenience, and speed of service, merchandise accessibility, prices, merchandise assortment, services offered, and sales personnel. Successful marketers evaluate their customers patronage motives and carefully design the shipping experience accordingly. The purchases process does not end with the purchase. Post-purchase behavior can influence future purchase and what the buyers tell others about the product. You may recommend the brand to everyone who asks you about your purchase. On the other hand, you may tell everyone about your unhappy experience with the product. In many purchases, consumers may experience anxieties known as cognitive dissonance. This occurs anytime there is inconsistency in a persons cognitions such as knowledge, attitudes, beliefs, and values. Each product considered by the consumer has both advantages and disadvantages. Thus, the purchased product has both advantages and disadvantages. The rejected products have some advantages. Given the importance of post-purchase behavior in influencing future purchases, marketers want to help to reduce dissonance. They can reassure buyers through their advertising and personal selling, while giving quality service after the sale.

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CHAPTER-II INDUSTRY PROFILE

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SOFT DRINK INDUSTRY Soft Drink:

A soft drink is a drink that does not contain alcohol, as opposed to hard drinks, that do. In general, the term has used only for cold beverages. Hot chocolate, tea, and coffee have not considered as soft drinks. The term originally referred exclusively to carbonated drinks (soda), and still commonly used in this manner.

Marketing:
Soft drinks have commonly sold in stores in bottles and cans. Sales earn a significant amount of money for the producers and distributors. Most famous name-brand soft drinks have produced and bottled by local or regional independent bottling companies. These companies license the name, and they usually sold the main ingredients, with syrup made by the main manufacturing plants of the trademark holders. In the past, most cola flavor and other soft drink ha sweetened with ordinary sugar (sucrose), but to save on production costs, most companies in the USA have turned to the more economical HFCS (High-Fructose Corn Syrup) as a sweetener, because of the high price of sugar in the USA due to sugar quotas. In some countries outside the United States, sugar is still used. Competition in the industry among soft drink producers is widely referred to as the Cola Wars.

Diet Soft Drinks:

In recent years, there has been a growing demand for alternatives to sugar-heavy soft drinks. Regular soft drinks largely contain sugar or corn syrup, and been blamed in recent years for contributing to obesity. Sugars, like other carbohydrates stimulate the production of the hormone insulin, which causes the body to store far rather than burn it. Diet soft drinks are sweetened with chemicals, such as aspartame and saccharin, which are perceived as sweet by most people, yet do not stimulate insulin production or have any food energy or nutritional value. In some other areas, these drinks called Soda pops, while in and around Boston, Massachusetts, they often called tonic, particularly among older generations.

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In North Carolina, the terms drink and soft drink commonly used along with soda and coke to refer to non-alcoholic cold drinks. Some older generations of Southerners refer to such drinks as dope. See the Great Pop Vs Soda Controversy for maps and geographical trends. At many restaurants in the U.S., One finds that the products of only a single major beverage producer such as The Coca-Cola Company or PepsiCo are available. While a patron who requests a Coke may be truly indifferent as to which cola brand he receives, the careful order taker will confirm intent with a question like Is Pepsi OK? Similarly, 7 Up or Sprite may indicate whichever clear, carbonated, citrus-flavored drink happens to be at hand. The generic use of these brands does not affect the local usage of the works pop or soda, to mean any carbonated beverage.

Mixed Soft Drinks:

A graveyard/ suicide/ pop bomb/ swamp water/ garbage soda is made by mixing many soft drinks together, usually from a soda fountain. A float created by dropping a scoop of ice cream into a soft drink. In the Midwestern United States, a soft drink with ice cream added most often called a soda thus leading to quizzical looks from wait staff when people ask for a soda instead of pop. The most common of these is the root beer float. In Australia and New Zealand, it has known as a Spider. In Brazil, a scoop of ice cream into a soft drink may have different names: Vaca preta (black cow) ice cream in cola. Vaca amarela (yellow cow) ice cream in guarana flavored soft drink.

Pantera cor de Rosa (the Pink Panther) Strawberry ice cream in lemon lime soft drink. In the U.S., some floats have specific names as a Brown Cow or Black Cow, vanilla ice cream in root beer, or Boston cooler, vanilla ice cream in Vernors ginger ale.

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Controversy: Studies showing a correlation between soft drinks and obesity

A study from Harvard shows that soft drinks may be responsible for the doubling of obesity in children over the last 15 years. From 1991 ad 1995, adolescent boys, in the US, on the average, increased their intake of soft drinks from 345 ml to 570 ml. Most soft drinks have sweetened with sugar or corn syrup, and not artificial sweeteners. Dr. David Ludwig of the Boston Childrens Hospital showed that schoolchildren drinking at least eight U.S. fluid ounces (240 ml) or more of regularly sweetened drinks daily. Moreover, they are consuming 835 calories (3,500 kilojoules) more than those avoiding soft drinks, i.e., children who drink soft drinks loaded with sugar tend to eat much more food than those who avoid soft drinks. Either those taking sugared drinks lack the same restraint on foods, or sugared drinks cause a rise in insulin that makes adolescents hungrier, causing them to eat more. Soft drinks (including diet soft drinks) also typically consumed with other high-calorie foods such as fast food. Children who drink soft drinks regularly are therefore fatter on average, in addition to being more likely to develop diabetes later in life (see below). This finding is controversial, because children in much of the Third World also consume large number of soft drinks with even more sugar, and do not share the same obesity rates as American children, suggesting that other factors are involved aside from sugar consumption in soft drinks. Suggested factors include physical activity, and the fact that American soft drinks sweetened with high fructose corn syrup instead of cane sugar. Monosodium glutamate (MSG), which used to enhance the sweetness of some soft drink beverages, could also play a role by stimulating appetite.

Availability:
Some argue that soft drinks are too widely available, from every restaurant, Movie Theater, vending machine, and similar locations. The wide availability has said to cause young people to somewhat mistake soft drinks for a major food group. Other believe that the high price of soft drinks should offer a significant disincentive to impulse buy such beverages and prevents sale to children without parental approval. They also believe that a small amount of will power on the part of the individual is all that is required to reduce consumption and that one should take personal responsibility for their own purchasing decisions.
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Soft Drink Formula: Disclaimer:

Making soft drinks is not for the faint of heart, nor the dirty of finger. It is a solemn enterprise not to enter into lightly, as with marriage or buying used farm machinery. With any food-prep, failure to observe basic hygienic principles, follow directions, and exercise common sense can have grave consequences. Open Cola assumes no liability for any problems that arise out of the use of this document, proceed at your own risk. No one is putting a gun to your head, so do not bother if you cannot boil water. Improper use of cola might result in blunt trauma, puncture wounds physical illness, mental illness, caffeine dependency, dental necrosis, acid reflux, death, devastation, and random tax audits. Alternatively, it might not. A list of warnings been provided below. We did not include them or our health- we included them for yours. Read them. Know them. Follow them. Tattoo them to your backside. Just in case you have any doubt, following the directions below may be hazardous to your health and property. You assume any rick arising from the manufacture and consumption of cola. An important note: this is not the receipt for Open Cola- that is, the canned beverage from Open Cola that you may have received at a trade show, or other venue or outlet. Making canned cola requires millions of dollars in abstruse gear and manufacturing gizmos. It is easier to make nerve gas than manufacture cola. You can make a kitchen-sink recipe all on your own. It is our kitchen-sink recipe. We figured it out somewhere between coding the COLA SDK and debugging the Linux build of the clever. Anyway, we have tried to be nice about the disclaimer. If it is not good enough for your health, heres what our lawyers have said about the whole shooting match. By copying and/ or distributing the program, you hereby agree to the following: Indemnity: You should indemnify, defend, and hold harmless Open Cola, its affiliates, directors, officers, and employees from and against ay third-party claim, demand, cause of action, debt, liability, cost or expense (including, but not limited to, reasonable attorneys fees) arising out of your use of the recipe, or any derivative thereof. Including, but not limited to, any claims arising from your distribution of soft drink based on the recipe or any derivatives thereof.

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How soft drinks made?

Water, Water, Everywhere:

Soft drinks are mostly water. Therefore, the quality of the water going into your favorite soft drink is very important. A series of filtration systems produces the high quality water that is fresh, clean, and clear.

The Flavor Secret:

Here is where the magic happens. From secret recipes, flavorings have added to give each soft drink its unique taste. By combing sweeteners, herbs, berries, and many other ingredients, a syrup base has created which have added to the pure water.

Adding Bubbles is a Gas:

After the flavors have added to the water, the result is a great taste, but slightly boring beverage. Now, the bottler brings it to life by adding carbon dioxide, a tasteless, odorless, natural gas, with machine called a carbonator.

Filler Up:
Now we are ready to put the great tasting bubbly into a container. It has transferred under pressure to a filling machine. The filling machine squirts just the right amount into squeakyclean containers, which has immediately sealed for freshness.

Now for the Warm-up:

Throughout the manufacturing process, soft drinks are usually chilled. If they transferred this way, condensation would form on the outside of the container and make cartons and cases wet. Therefore, every container has sprayed with warm water to bring it to room temperature and dried before moving on to shipping.

Name it and Send it Packing:

Many soft drink containers have labels pre-printed before they arrive at the soft drink plant. If not, they have applied, placed in cartons or trays, bundled into large pallets, and whisked away to you.

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SOFT DRINKS NORMS & CONTENTS Product Information Ingredients

We only use the finest ingredients to make Pepsi-Cola products. To guarantee our consumers consistent quality, each ingredient must pass our high standards, rigorous quality control tests, and strict bottling procedures. All ingredients have listed on the label in order of decreasing amount. Pepsi-Cola products contain natural flavors, including extracts of the kola nut, vanilla beans and flavor oils derived from natural sources such as citrus and other fruits. Caramel (made from corn sugar) adds color and flavor to our colas. Other ingredients add a refreshing taste: phosphoric acid in colas; citric acid and sodium citrate in Mountain Dew, Slice, and Diet Pepsi. We also put a freshness date on every can and bottle. Soft drinks may lose some flavor over time so our freshness date tells consumers when the product is freshest and best tasting. Every can and bottle of Pepsi-Cola products has a Nutrition Facts panel, which shows the number o calories and other nutrients per serving. There is essentially no fat in any Pepsi-Cola products. The main ingredients found in Pepsi-Cola products include carbonated water, carbohydrates, sugar, sodium, potassium, and caffeine. For a complete breakdown by ingredients by product, see our product information for Pepsi, Diet Pepsi, Pepsi ONE, Mountain Dew, Slice, Mug Root Beer, or Aquafina.

Acesulfame-K
Also known as Acesulfame-K, ASK and the brand name Sunett. A non-nutritive, calorie-free sweetener discovered in 1967. Since AcesulfamePotassium is 200 times sweetener than sucrose (table sugar), only a small amount needed to sweeten a product. Acesulfame-Potassium is currently used in some of our diet beverages and in more than 1,000 products around the world i.e., desserts, baked goods, soft drinks, candies, canned foods and pharmaceutical products) and has been the subject of approximately 90 scientific studies to ensure is safety.

Ascorbic Acid:
Another name for Ascorbic Acid is Vitamin C. The ascorbic acid used in our carbonated soft drinks functions as an antioxidant to protest the flavors, color, and taste. In some beverages,
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we also add it to provide the nutritive value found in Vitamin C. Check out of the amount of Vitamin C that Aquafina Essentials provides by clicking onto its website.

Aspartame:
Aspartame is a sugar substitute used in our diet beverages and many other food products. Aspartame is made of the same building blocks as protein, so has considered a nutritive sweetener, but the very small amounts used in diet drinks contribute no calories.

Blue-1:
Blue-1 is an FDA-approved food coloring used in a variety of products such as jellies, condiments, puddings, and beverages. For the past 50 years, health professionals have carefully evaluated the safety and suitability of colors for use in foods. The types of food colorings we use here at Pepsi have been review by reputable scientific organizations and are safe for consumers to use. Here at Pepsi, in our products we only use ingredients that have fully approved and deemed safe for use in foods by the Food and Drug Administration. For more information about Blue-1, we encourage you to contact to following organization.

Brominated Vegetable Oil (BVO):

Brominated Vegetable Oil had been use by the soft drink industry since 1931. A widely used food additive have extensively tested and approved by the U.S. Food & Drug Administration. Brominated Vegetable Oil derived from soybean oil that has modified in order to keep the flavoring oils well blended.

Caffeine:
People have enjoyed foods and beverages contain caffeine for thousands of years. Caffeine is a substance that occurs naturally in more than 60 plants including coffee beans, tealeaves, kola nuts and cocoa beans, where caffeine is actually not occurring in a beverage, caffeine has added to certain soft drinks as part of the flavor profile. Caffeine has a classic bitter taste that enhances some flavors and balances the sweetness of other flavors. The amount of caffeine in a soft drink is only a fraction of that found in an equal amount of coffee or tea. The long history of caffeines use confirms that it is safe when consumed in moderation. Moderate
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amounts of caffeine intake have deemed safe by the American Medical Association, the American Cancer Society, and the U.S. Food and Drug Administration. For people who wish to restrict their caffeine intake, many caffeine-free soft drinks are available.

Carbonated Soft Drinks:

More than 5,560 million liters of carbonated soft drinks have consumed every year in the U.K. Such drinks are crammed full of sugars and acid that attack our teeth and may result in dental decay. Tooth decay happens when teeth have attacked by acid, and this can happen in two ways. Acid attacks can happen because of plaque bacteria acting on the sugars in our diet, or as a direct result of the acids in food dissolving away the enamel on the surfaces of our teeth. As carbonated soft drinks tend to contain high amounts of both sugars and acids, they are the worst possible combination for dental health. Not only are sugary drinks detrimental for oral health, they are caloric and provide little in the way of nutrients. Even those drinks that have labeled as sugar free, reduced sugar or low sugar can still contain enough sugar to cause damage to your teeth, d have the same acids as the standard carbonated drinks. Therefore, it has recommended replacing carbonated drinks in the diet with other options where possible.

Energy Drinks:
There are three basic types of energy drinks: Refreshment energy formulated to replenish energy levels for someone who had perhaps run down or recovering from illness. Sports drinks formulated to rapidly replace fluids during exercise and maintain the bodys blood glucose levels. Functional energy aimed at anyone who wants to gain a quick burst of energy and alertness. Energy drinks contain complex carbohydrates a blend of slow, medium- and fast-acting sugars and are able supply energy to the body over an extended period. They may also contain energy enhancing ingredients such as caffeine or turbine to boost alertness. The safety of energy drinks, in particular their energy enhancing ingredients, has investigated by a European committee. When it comes to caffeine, the majority o energy drinks

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have found to contain the same amount as a cup of filter coffee. The committee therefore felt there was no concern about the contribution of energy drinks for non-pregnant adults. However, it is recommended that pregnant women should moderate their caffeine intake overall and this means not more than four cans of energy drink per day. Caffeine in energy drinks may also lead to overexposure in children, who do not normally consume much tea or coffee and are therefore more susceptible to the effects of caffeine on the body. In relation to other energy enhancing ingredients, such as turbine, the committee was unstable to conclude that the level reported in energy drinks was within any upper safety limit. It concluded that further studies are required in order to establish an upper safe level for daily intake.

Soft Drinks Linked to Diabetes:

In 2004, a study of 50,000 nurses over a period of 8 years found that drinking one or more sugar-sweetened soft drinks per day increases ones risk of developing diabetes by 80%, when compared to those who drank less than one soft drink per month. This finding was independent of other lifestyle factors. In the same study, a similar observation has made for fruit juice consumption. This finding is controversial.

Soft Drinks in India

Euro monitor Internationals Soft Drinks in India report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market- be the new product developments, packaging innovations, economic/ lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.

Soft Drinks in Indian Market Introduction

Soft drink market size for FY00 was around 270 m.n. cases (6480 mn bottles). The market witnessed 5-6% growth in the early 90s. Presently the market growth has growth rate of 7-8% per annum compared to 22% growth rate in the previous year. The market size for FY01 expected to be 7000 mn bottles.
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Soft Drink Production Area

The market presentence is regional based. While cola drinks have main markets in metro cities and northern states of UP, Punjab, Haryana, etc., Orange flavored drinks are popular in southern states. Sodas too have sold largely in southern states besides sales through bars. Western markets have preference towards mango-flavored drinks. Diet coke presently constitutes just 0.7% of the total carbonated beverage market.

Growth promotional activities:

The government has adopted liberalized policies for the soft drink trade to give the industry a boast and promote the Indian brands internationality. Although the import and manufacture of international brands like Pepsi and Coke have enhanced in India, the local brands are being stabilized by advertisements good quality and low cost. The soft drinks market until early 1990s was in hands of domestic players like Campa, Thumps Up, Limca etc., but with opening of economy and coming of MNC players Pepsi and Coke the market has come totally under their control. The distribution network of Coca Cola had 6.5 lakhs outlets across the country in FY00, which the company is planning to increase to 8.0 lakhs by FY01. On the other hand, Pepsi Cos distribution network had 6.0 lakhs outlets across the country during FY00 which it is planning to increase to 7.5 lakhs by FY01.

Types:
Soft drinks are available in glass bottles, aluminum cans and PET bottles for home consumption. Fountains also dispense them in disposable containers Non-alcoholic soft drink beverage market has divided into fruit drinks and soft drinks. Soft drinks have further divided into carbonated and non-carbonated drinks. Cola, Lemon and Oranges are carbonated drinks while mango drinks come under non-carbonated category. The market can also segment based on types of products into Cola products and non-cola products. Cola products account for nearly 61-62% of the total soft drinks market. The brands that fall in this category are Pepsi, Coca-Cola, Thumps Up, Diet Coke, Diet Pepsi etc., Non-Cola segment which constituents 36% can divided into 4 categories based on the types of flavors available, namely: Orange, Cloudy Lime, Clear Lime, and Mango.

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CHAPTER-III PEPSI PROFILE

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PEPSI COMPANY PROFILE

Pepsi-Cola North America, Headquartered in Purchase, N.Y., is the refreshment beverage unit of PepsiCo Beverage and Foods North America, a division of PepsiCo, Inc. PepsiCo Beverage and Foods North America also comprises PepsiCos Tropicana, Gatorade and Quaker Foods business in the United States and Canada. Pepsi-Cola North America has carbonated soft drinks, including Pepsi, Diet Pepsi, Pepsi Twist, Mountain Dew, Mountain Dew Code Red, Sierra Mist, and Mug Root Beer account for nearly one-third of total soft drink sales in the United States. Pepsi-Cola North Americas non-carbonated beverage portfolio includes; Aquafina, which is the number one brand of bottled water in the United States, Dole single-serve juices, and SoBe, which offers a wide range of drinks with herbal ingredients. The company also makes and markets North Americas bestselling, ready-to-drink iced teas and coffees via joint ventures with Lipton and Starbucks, respectively. PepsiCo, Inc. is one of the worlds largest food and beverage companies. The companys principal businesses include: Frito-Lay snacks Pepsi-Cola beverages Gatorade sports drinks Tropicana juices Quaker foods

PepsiCo, Inc. founded in 1965 through the merger of Pepsi Cola and Frito-Lay. Tropicana has acquired in 1998. In 2001, PepsiCo merged with the Quaker Oats Company, creating the worlds fifth-largest food and beverage company, with 15 brands each generating more than $ 1 billion in annual retail sales. PepsiCos success is the result of superior products, high standards of performance, distinctive competitive strategies and the high level of integrity of our people.

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OVER VIEW
PepsiCo is a world leader in convenient foods and beverages with 2004 revenues of more than $ 29 billion and 153,000 employees. The company consists of Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International, and Quaker Foods North America. PepsiCo brands are available in nearly 200 countries and territories and generate sales at the retail level of about $ 78 billion. Many of PepsiCos brand names are more than 100- years old, but the corporation is relatively young. PepsiCo has founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana has acquired in 1998 and PepsiCo merged with the Quaker Oats Company, including Gatorade, in 2001. PepsiCo offers product choices to meet a broad variety of needs and preferences from fun-for-you items product choices that contribute to healthier lifestyles. PepsiCos mission is To be the worlds premier consumer Products Company focused on convenient foods and beverages. We seek produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

PepsiCo Headquarters
PepsiCo World is located in Purchase, New York, approximately 45 minutes from New York City. The seven-building headquarters complex has designed by Edward Durrell Stone, one of Americas foremost architects. The building occupies 10 acres of a 144-acre complex that includes the Donald M. Mendel Sculpture Gardens, a world-acclaimed sculpture collection in a garden setting. Masters such as Augusta Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Olden berg, focus the collection of works on major twentieth century art, and features works. The gardens originally has designed by the world famous garden planner, Russell Page and have been extended by Francois Goff net. The grounds are open to the public, and a visitors booth is in operation during the spring and summer.

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PEPSI PRODUCTS

Pepsi The Joy of Pepsi. Product Information www.pepsico.com Pepsi Lime Have the Lime of Your Life. Product Information www.pepsilime.com Diet Pepsi Lime Have the Lime of Your life Product Information www.pepsilime.com

Mountain Dew Product Information www.mountaindew.com

Diet Mountain Dew Product Information www.mountaindew.com

Code Red A sensation As real as the Streets. Product Information www.codered.com

Diet Pepsi O carbs. O calories. Its the diet cola Product Information www.dietpepsi.com Pepsi Twist A Twist on a Great Thing Product Information www.pepsitwist.com Diet Pepsi Twist Product Information A Twist on a Great Thing Mountain Dew Product Information www.mountaindew.com

Diet Code Red Product Information www.codered.com

Livewire Product Information www.mountaindew.com/ livewire AMP Mmmm.Energy Product Information www.ampenergy.com Pepsi Vanilla The Not-So-Vanilla Vanilla Product Information www.pepsivanilla.com

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Diet Pepsi Vanilla The Not-So-Vanilla Vanilla Product Information

Aquafina Purity Guaranteed Product Information www.aquafina.com

Wild Cherry Pepsi Check Out The Cherry Product Information

Mug Root Beer The Taste You Carve. Product Information www.mugrootbeer.com Diet Mug Root Beer Product Information www.mugrootbeer.com Mirinda Orange Savor Your Mirinda Product Information Other Mirinda Flavors

Diet Wild Cherry Pepsi Product Information Pepsi ONE Bring together great taste with one calorie. One if. Product Information www.oneify.com Sierra Mist Shockingly Refreshing Product Information www.sierramist.com

Tropicana Juice Drinks Product Information www.tropicana.com

Sierra Mist Free Product Information www.sieramist.com

Frappuccino The taste that makes the break. Product Information www.starbucks.com

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Starbucks Double sot Is the only get you going beverage that has the delicious intensity of chilled Starbucks espresso and cream? Product Information www.soubleshot.com

Tropicana Twister Soda Tropicana Twister TM Soda gives you the intense fruit flavors you are looking for. Available in Orange, Diet Orange Strawberry and Grape.

Aquafina Flavor Splash Purity Guaranteed Product Information www.flayorspalsh.co m Aquafina Sparkling Purity Guaranteed Product Information www.aquafina.com

Lipton Brisk Product Information www.liptonbrisk.c om

SoBe Product Information

Lipton Iced Tea Product Information www.liptont.com

Quaker Milkier Chillers Product Information www.milkchillers. com

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PROFILE OF PEPSI FOODS INDIA LIMITED AND PEARL BOTTLING PRIVATE LIMITED
Pepsi Food Indian Limited drinks is owned by multinational giant of beverages of company incorporation; of New York, USA which has a turnover of $ 28 billion and an average sales volume of $ 10 billion in the world. Prior of liberalization in 1990, corporation entered into a joint venture with TATA group company Voltas with 24% equity under the Punjab agro industry corporation with 36% equity and with an investment of $ 98 million. After LIBERLISATION of our economy, Voltas share has acquired by leaving only 8% to the Punjab agro industries and later on, it bought all the equity shares and converted food from a three way joint venture to a fully owned subsidiary. Pepsi Foods Indian Limited is head quartered in New Delhi. It has 11 companies owned bottling plants and 15 franchises throughout the country. Company earlier used Lehar as a prefix to each of its brand names. Later it had asked by the government to drop the prefix. Another challenge is that Parle has come from Coca-cola. The Parle and Coke dominated the Indian soft drink market in the ensuing days. CocaCola purchased Parles brand such as Thumps Up, Limca, etc., along with its distribution network in 1993, at present has a market share of 48.5% and ranks number one in total sales of soft drinks, where as Pepsi has a market share of 47.8% and ranks next.

PROFILE OF PEARL BOTTLING PRIVATE LIMITED

PBPL incorporated in 1982 at Madhurawada in Visakhapatnam District of Andhra Pradesh for the purpose of manufacturing soft drinks. It was since then the company had started commercial production of company cola products. It produced cola, orange and lemon flavors under the brand names of thrill, rush, and sprint. It also produces, Mc-Dowell, Bagpiper soda. It produced these drinks under franchise agreement, but the company could not exist in the market due to the stiff competition from parley products. In February 1992, the company signed to manufacture and market products under franchise agreements. Franchise is a contract,

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which gives the company the right to do the business under the name and image of principals. According to this agreement, PBCL has given its consent To manufacture soft drinks using the concentrate supplied by Pepsi foods. To sell soft drinks and prices fixed by. To advertise and market within specified areas for the products. From 23rd April, PBPL started distributing the stocks received from Cuttack Plant. Commercial production started in PBPL from June 1992 onwards. Initially four brands viz., Seven-Up, Mirinda, and Lehar soda were bottled and distributed where as slice have supplied by Cuttack plant. In May 1993, a cloudy lemon flavor called TEEM was introduced which was not very well received by consumers because of the well established LIMCA. In April 1998 a new cloudy lemon flavor, namely Miranda Lemon has introduced after discounting TEAM. PBPL limited appointed as franchise by foods limited, in activities originally constructed by Campa-Cola soft drinks in 1980 at Madhurawada due to losses suffered by Campa-Cola, the unit became insolvent. As a result, Andhra Pradesh State Finance Corporation auctioned the premises, in 1990, after which it has purchased by PBPL. It started production in 1991. Initially it produced McDowell companys brands THRILL, RUSH, SPRINT, MC-DOWELLS SODA and BAGPIPER SODA. In February 1992, PBPL signed a memorandum of understanding with foods. The product has launched in 1992. From April 23rd, it started its distribution on receiving stocks from Cuttack. However, commercial production started at Visakhapatnam from June 1992 onwards. In the beginning FOUR drinks were bottled namely; PEPSI, MIRINDA, LEHAR SODA, SEVEN-UP were bottled and distributed were as SLICE continued to be supplied from Guntur Plant. The company distributes its products in five districts, they are: VISAKHAPATNAM SRIKAKULAM VIZIANAGARAM EAST GODAVARI WEST GODAVARI
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FINANCIAL STRUCTURE
Any company, which has to start and operate its business, has to invest its capital in fixed assets and floating assets and it is has to meet the daily requirements of the company. However, depending on the nature of the business and the product offered by the company, the ratio of investment of capital in fixed and floating assets differs. The following shows the financial structure of the pearl bottling limited

TYPES OF CAPITAL Funds employed Working capital Institution finance

AMOUNT (IN LAKHS) 60 15 40

PLANT LAYOUT
The layout of the bottling plant of PBPL confines for all the products based on the line layout. The machines and equipment have imported from Germany, which produces the best capital equipment in the world. The machinery and all the equipment has arranged as per the sequence of operations. The machines and workers are specialized in operations such as the preparations of syrup, cleaning the bottles, filling the bottles, aerating and sealing the bottles with crowns. All these carried on a continuous movement. The reasons for choosing the product layout are There is continuous supply of material. The brands are all standardized products. The demand for the products brand is reasonably stable. The volume of production is adequate for the reasonable utilization of equipment. Due to the above reasons, the product layout offers certain advantages. The product cycle speeded up since the company follows a continuous operation movement; the cost of material handling goes low. The total floor space is required by the machine is less than for other types of plant layout.

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PLANT CAPACITY
The company installed latest up to date automatic plant confirming to plant layout. The capacity of the plant is 24000 bottles per hour i.e., at the speed of 400 bottles per minute. The months from March to June, the plant is used to its full capacity by running three shifts every day. Each shift consists of eight hrs of so, during the summer season, the plant runs round the clock. This is because the demand reaches its peak in these summer months hence the company has to produce enough bottles of soft drinks at a speed to keep in pace with the disappearance of soft drinks from the shelves of the retailers.

PRODUCTION SCHEDULE
The production schedule has fixed by taking into consideration the present or current market demand. It also caters to the availability of empty bottles and the inventory position of filled up bottles of varying flavors. The production schedule for each brand fixed daily i.e., filling up of the bottles of each brand and flavor. This has an advantage wherein the banded products can manufactured one at a time. The glass bottles used for filling the soft drink are of the volumes capable of containing 300 ml of soft drink. There are also bottle of 200ml, 500ml 1 ltr, 1.5 ltr and 2 ltr capacities to fill by soft drinks.

QUALITY CONTROL
PBPL takes great care to maintain the quality by controlling the products in their factory. The bottles have usually examined for impurities continuously as the bottles move out. Samples have checked after every 10 minutes of the production time by the chemist for its quality and hygienic condition. The chemical analysis has made for flavors and the gas content checked. If any defects have noticed, the production is suspended and the corrective and the corrective

measures have taken to set right the bottling, process irregularities. Samples have taken from each week for quality checkup. Moreover, the agency of the company also lifts samples from the market at random for quality check up at anytime to make sure that the quality has maintained to the exact standard of the parent company. At the end of the production schedule, daily all the equipment plant floor and we patches cleared with bleaching powder or some other solution. The standard of hygiene maintained inside the production steps is commendable.
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SYRUP MAKING
In this process the syrup of a particular type is prepared by heating sugar with activated carbon powder and filter aid (by flousuper cell) in the treatment tank for a specified time and up to a particular temperature. During the treatment, most of the color, odor, and some organic impurities have removed from the sugar syrup. This treated syrup then passes through the filter press, fitted with; filter papers and heat exchanges, and then the clear syrup has collected in the syrup-making tank. The essence of particular products will be added for which a required amount of sugar is taken treatment Sugar syrup and essence are then mixed in the tank with the help of a mechanical stirrer and eventually the favor syrup is ready to be used in the end use of the product.

WATER TREATMENT
This is the second stage. In the process of soft, drink manufacture. Water is the basic ingredient in the soft drink, which comprised up to 90% of the quantity. Hence, the quality of water is of great significance to the soft drinks manufacturer. Here, when water has brought to the treatment tank, it has treated with a few chemicals such as hydrated lime, bleaching power and ferrous sulphate, which have mixed thoroughly with the help of a mechanical stirrer.

The reasons for water treatment are as follows:

It removes the hardness of water and converts it into soft water. It frees the water from microorganisms. It reduces the alkalinity to a required level. This treated water passes through the specially designed filtration plant containing chemicals such as activated carbon (granular) and finally the manufacturer will get the water suitable for soft drink bottling. Soda bicarbonate used for maintaining the equipments in hygiene conditions.

BOTTLING
In this process, both the concentrate and the purified water has mixed along will carbon dioxide gas and then bottled. In the soft drink field, only reasonable glass bottles are sterilized to
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make them sparkling clean, before the beverage is filled in the for this purpose, the company makes use of machine known as BOTTLED WORKER. For cleaning up of the bottles, washing chemicals such as caustic soda sand tri-sodium phosphate are used. In the bottle washing system, through one end of eh worker the dirty bottles has fed which are washed automatically while passing through various designed chambers containing chemical solutions at different temperatures and concentration. Hot water has used for cleaning the bottles. The bottles, after sterilization are collected at the other end of the washer. They have sent towards the filter on conveyor belts. Before the beverage reaches the filling machine, it saturated with carbon dioxide gas. This carbon dioxide gas gives fizz to the soft drinks and alongside prolongs the shelf life of the products. The bottlers and then moved on the conveyor belts to the filling machines where the beverage is filled under pressure. From there the bottles are sent to the crowner where sealing of the bottle in done with the help of crowns. The crowns have used to retain the carbon dioxide flavors as well as to protect the products from spoilage and contamination.

CRATING
The bottles collected from conveyor belts have placed manually into plastic crates. Each plastic case has a capacity of 24 bottles only. These crates protect the bottles form breakage as well as it ensures easy handling of the bottle. These crates put on specially designed vans for carrying the bottles to their various consumption points.

PERCENTAGE OF FLAVOR MOVEMENT IN THE MARKET

PEPSI THUMS UP LIMCA 7 UP MANGO 46.65% 19.45% 12.44% 12.22% 9.22%

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MANUFACTURING PROCESS OF A SOFT DRINK

For manufacturing a soft drink, the following raw materials are required. 1. Water 2. Sugar 3. Activate carbon powered 4. Hyflousuper cell 5. Filter paper 6. Essence 7. Hydrated line 8. Bleaching power 9. Ferrous sulphate 10. Activate carbon (granular) 11. Soda-bio-carbonate 12. Carbon- dioxide gas 13. Tri sodium phosphate 14. Plastic crates 15. Caustic soda The process of manufacturing soft drinks has mainly divided into four parts, they are: 1. Syrup making 2. Water treatment 3. Bottling 4. Crating In syrup making process, the syrup of a particular product is prepared by heating sugar with activated carbon power and filter (Hyflousuper cell) in the treatment tank for a specified time up to a particular temperature. During treatment, most of the color, odor, and some organic impurities have removed from the sugar syrup. This treated passes through the filter press filter with papers and heat exchanges and the clear syrup is collected in the syrup moving tank where the essence of a particular product will be added for which a required amount of sugar is taken for treatment. The essence and sugar syrup has mixed into the tank with the help a mechanical stirred and finally the flavor syrup is ready for use in finished products.
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The second process is water treatment. As an added ingredient, water can compromise up to 90% of a soft drink. The quality of water is thus of a particular importance to the soft drinks manufacturers. In this process, water has brought to the treatment tank and then water treatment chemicals such as hydrated lime, bleaching power and ferrous sulphate has added to the tank and moved thoroughly by the help of mechanical stirrer. The treated water-is then passed through the specially designed filtration plant containing chemicals such as activated carbon (granular) and finally the manufactured will get the standard water i.e., suitable for soft and then bottles are moved towards crowner where the sealing is done w3ith the help of crowns. The crowns used in order to retain the carbonation flavors as well as to protect the products from outside contamination and spoilage. The bottles have checked for maintaining the required standard. Finally, the filled bottles have checked for maintaining the required standard. Finally, the filed bottles have collected in plastic crates from the conveyor. The marketable le lot is only comprised of a crate and filled with 24 bottles in each plastic crate. This crate is mainly useful to protect the bottles and keep them in good condition and eliminates breakage and collected back in the same crates. Then the finished products have transferred to the shipping department of shipment.

ORGANIZATION STRUCTURE AND MANAGEMENT

The word organization has two common meanings. The first meaning signifies institution or functional group, and the second one refers to the process of organizing the way of work, which has arranged and allocated among members of the organization, so that the goal of the organization can achieved efficiently. The organizing process involves balancing the companys need; both for stability on one hand and change on t3he other hand. Na organization structure gives stability and reliability of its goals. While altering an organization structure can be a means of adopting and bringing in about a change, which could otherwise be a source of resistance to change. Organizing involves analysis of activities to be performed for achieving organizational objectives grouping them into various individuals and delegation them with appropriate authority so that they can carry on their work properly. Organization structure can defined as an arrangement and relationship of component parts, which also helps to determine the position or

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company. An organization structure specifies the division of work activities and shows us how different activities linked. Organization structure is a basic framework within which the managers decision-making behavior takes place. Structure deals with relationships. It is an important scientific concept. In simple terms-it has defined as a pattern in which various parts or compounds are inter-related or inter-connected. Five elements comprise an organization structure: Specialization of activities Standardization of activities Coordination of activities Centralization and decentralization of activities Size of the work unit

The Managing Director, Mr. Haranath Reddy, is the Head of the organization, which had assisted by a team of Senior, well-qualified and experienced managing personnel.

LIST OF STAFF Sl. No.

1 2 3 4 5 6 7 8 VICE PRESIDENT

Description
- FINANCE

No. of Employees
1 1 1 1 4 3 1 1

COMMERCIAL MANAGER MARKETING DEVELOPMENT MANAGER SENIOR GENERAL MANAGER SALES TERRITORY DEVELOPMENT MANAGER ACCOUNTS DEVELOPMENT COORDINATOR TRADING MANAGER ASSISTANT TRADING MANAGER

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9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

MARKET EQUIPMENT MANAGER GENERAL MANAGER (OPERATIONS) ASSISTANT PERSONAL MANAGER STORE EXECUTIVES CUSTOMER CENTRAL EXECUTIVE TERRITORY COORDINATOR ROUTE AGENTS SALES TRAINEE CHEMISTS ACCOUNTS SUPERVISORS CLERKS OPERATIONS ELECTRICALS FITTERS COMPUTER CUM TELEPHONE OPERATORS SECURITY GUARDS OFFICE BOYS SWEEPERS AND HELPERS

1 1 1 3 25 1 50 1 3 5 8 8 10 3 2 12 6 13 3

(NOTE: ACCORDING TO 2011 COMPANYS INFORMATION)

The above table shows the descriptions of employees along with their designation and the total no. of employees that constitute each designation.
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CHAPTER- IV METHODOLOGY

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SCOPE OF THE STUDY

1. The study has conducted in Visakhapatnam and the respondents chosen randomly. 2. The sample size has been limited to100, which may restrict the scope and complexity of the study. 3. The scope of the project could be broadened if the project duration is extended and. 4. The primary objective of the report is to study the attributes, which a consumer considers important while taking decision to purchase soft drink.

OBJECTIVES OF THE STUDY

1. To ensure the customers satisfaction level after consuming the product. 2. To study the consumption patterns among the different classes of the Consumers. 3. To study buying motive and behavior of the consumers. 4. To assess the tastes and preferences of different consumers. 5. To know the image of Pepsi with other brands. 6. To study the profile of Pepsi and Pearl bottling company. 7. To make recommendations in all areas for promotions.

LIMITATIONS OF THE STUDY

Data collection had some hurdles due to large size of organization. First, there was time constraint since this study had to complete in a limited period of 45 days. A more detailed study of consumer satisfaction level of soft drinks could not carry on due to the limitations of the time. Disclosure of the distribution network is hard due to its internalized nature. The study of is confined to Vizag City Only.

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METHODOLOGY
Research: Investigation and analysis focused on a better or fuller understanding of a subject, phenomenon, or a basis law of nature instead of on a specific practical application of the results. Collection of data: Generating or bringing together information that has been systematically observed, recorded, organized, categorized, or defined, in such a way that logical processing and inferences may occur. The requisite data been gathered through two important sources: Primary Data Secondary Data Primary Data: The primary data are those, which are collected afresh and for the first time, and thus happen to be original in character. There are several methods of collecting primary data, particularly in surveys and descriptive researches. Those are: (i) observation method, (ii) interview method, (iii) through questionnaires, (iv) through schedules. In this, I collected the data through questionnaires.

Secondary Data: The secondary data, on the other hand, are those which have already been collected by someone else and which have already been passed through the statistical process. Usually secondary data available in various publications of the central, state are local governments, technical and trade journals, reports and historical documents, and other sources of published information. Here I collected the secondary data through company annual reports, magazines, company websites.

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CHAPTER-V ANALYSIS AND TABULATION

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Q1. Type of drink you consume most TABLE: 1 Most Consumption Category Carbonated Drinks Fruit Based Drinks Total No. of respondents 48 52 100 Percentage 48% 52% 100%

CHART: 1

Most Consumption

48%
52% Carbonated Drinks Fruit based Drinks

INTERPRETATION: 52 percent of consumers are more willingly to consume fruit drinks rather than the 48 percent carbonated drinks. Therefore, the company has to introduce more flavors in their fruit drinks.

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Q2. Type of brand you rely upon TABLE: 2 Favorite opted drink No. of respondents 48 52 100

Category Pepsi Coke Total

Percentage 48% 52% 100%

CHART: 2

Favorite Opted Drink

48% 52%

Pepsi Coke

INTERPRETATION: 52 percent consumers reply more on Coke than Pepsi which of only at 48 percent. Therefore, company has to take the necessary steps in order to remain in the market.

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Q3. Drinks you consume daily TABLE: 3 Daily Consumption No. of respondents 72 21 7 100

Category Once Twice Trice Total

Percentage 72% 21% 7% 100%

CHART: 3

Daily Consumption
7% 21% Once Twice Trice 72%

INTERPRETATION: 72percent consumers are having drinks only once where as the 21percent, consumers are having drinks twice and 7percent consumers are having drinks trice a day. This tells us how consumer will change from time to time.

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Q4.What matters you the most TABLE: 4 Your prior importance Category Taste Quality Price Total No. of respondents 56 39 5 100 Percentage 56% 39% 5% 100%

CHART: 4

Your prior importance

5% Taste 39% 56% Quality Price

INTERPRETATION: 56percent consumers have opted taste, 39percent opted for quality, and 5percent opted for price. Therefore, company has to improve their taste of the syrup.

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Q5. You prefer to drink soft drinks on TABLE: 5 Preferable Consumption No. of respondents 42 58 100

Category On occasion as such

Percentage 42% 58% 100%

I drink them as and when I feel like Total

CHART:5

Preferable Consumption

42% 58%

On occasion as such I drink them as and when I feel like

INTERPRETATION: 58percent consumer will have the drink as and when they want to drink and 42percent will have on occasions. According to this, they do not want any occasions to have the drinks.

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Q6. Preferred channel for purchasing drinks TABLE: 6 Place you buy Category Super market Pan shop Retail/Grocery store Restaurant Others Total No. of respondents 25 39 13 12 11 100 Percentage 25% 39% 13% 12% 11% 100%

CHART: 6

Place you buy

11% 25% 12% Super market

Pan shop
Retail / Grocery store Restaurant others 39%

13%

INTERPRETATION: 39percent consumers buys in pan shops, 25percent buys in super markets, 13percent buys in retail stores, 12percentbuys in restaurants and 11percent buys in others places. Company has to focus to improve this channel.

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Q7. Brands you pick up in the grocery/retail store TABLE: 7 Your favorite pick up Category PepsiCo Coca-Cola Total No. of respondents 49 43 100 Percentage 49% 43% 100%

CHART: 7

Your favorite pick up

8%

49% 43%

PepsiCo Coke-Cola others

INTERPRETATION: 49percentconsumers are interested to have Pepsi products, 43percentconsumer has interested in Coke products, and rest 8percent is interested in other products in their shopping.

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Q8. Quantity you prefer to buy TABLE: 8 Category 200 ml 300 ml 600 ml 1 litre Total Preferable Quality No. of respondents 46 15 19 20 100 Percentage 46% 15% 19% 20% 100%

CHART: 8

Preferable Quantity
20% 200ml

46%
19%

600 ml 300 ml 1 litre

15%

INTERPRETATION: 46percent consumers prefer to buy 200 ml, 20percent prefer 1 litre, 19percent preferred 300 ml, and 15percentprefer 600ml.

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Q9. Best promotions offered by the company TABLE: 9 Percentage change Category Pepsi Coke Total No. of respondents 57 43 100 Percentage 57% 43% 100 %

CHART: 9

Percentage change in promotion

43% 57%

Pepsi Coke

INTERPRETATION: 57percentconsumers are interested in the Pepsi promotions when compared with the coke, which is at 43percent.

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Q10. Advertisements help in increasing sales of soft drinks. TABLE: 10 Category Yes No Total Advertisements No. of respondents 85 15 100 Percentage 85% 15% 100 %

CHART: 10

Advertisements
15%

Yes No 85%

INTERPRETATION: 85percentof the consumers feel that the advertisements will definitely increases the sales of drinks where 15percent feels it will not increase the sales.

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Q11. Opinion about Pepsi. TABLE: 11 Opinion about pepsi No. of respondents 44 52 4 100

Category Good Satisfactory Bad Total

Percentage 44 % 52% 4% 100%

CHART: 11

Opinion about Pepsi

4% Good 44% 52% Satisfactory Bad

INTERPRETATION: 52percentconsumer feels that the Pepsi products are satisfactory; 44percent feels it is good and 4percent feels it is bad.

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Q12.Responses given to Q.No.12-17 basing on a scale of 1-5 TABLE: 12 Rating Responses Category No. of respondents Availability & convenience 43 Price 35 Advertisement 37 Packing 32 Brand ambassador 27 Visual appeal of packaging 43 Total 100 CHART: 12

Percentage 20% 16% 17% 15% 12% 20% 100%

Rating Responses
20% 20% Availability & convenience Price 12% Advertisement 16% 15% Packing Brand ambassador 17% Visual appeal of packaging

INTERPREATATION: 20percent gave importance to both availability & Visual appeal of packaging, 17percentgave importance to advertisements, 16percent gave importance to price, 15percent gave importance to packing, and 12percent gave importance to brand ambassadors.

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CHAPTER-VI SUGGESTIONS, FINDINGS AND CONCLUSIONS

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SUGGESTIONS:
1. Pepsi have to introduce new flavors with new brands. 2. Pepsi have to concentrate on regional, promotional, and advertising also. 3. Make affective advertisements. 4. Need to change the brand ambassadors. 5. Need to introduce more varieties. 6. Make the availability of Tropicana at each store in the market like other juices and soft drink, Most of the consumers switch over to other brand because of the non-availability of the required product. 7. Market of Tropicana covered not only from the modern trade stores so company has to make the same efforts to fulfill the availability in traditional stores. 8. In order to attract youth and childrens and lower in come consumer, company should focus more on availability of small packs. 9. Company should make its promotional channel stronger in order to generate more awareness.

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FINDINGS:
1. Pepsi is regularly consumed brand is it has wide area of geographical coverage and people feel comfortable to have it in any place. 2. Pepsi is preferred for its taste. 3. People prefer to have Pepsi regularly. 4. People preferred 250ml for its quality at reasonable price. 5. People preferred soft drinks as it saves time & can carried out to any place as it can store safely. 6. People are more influenced by media and get awareness about the product & some are influenced by celebrates. 7. When compared to coke Pepsi is tastier so people preferred to take Pepsi.

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CONCLUSIONS:
Proper approach to the retailers at the time of tie-ups is required. The retailers satisfaction is low. Company does not provide schemes properly. No provision for regular replacement of damage of bottles. Many complains of retailers does not listen by the company. Many retailers want monopoly but company does not provide. During my summer training, I found that there is so many competitors of Tropicana in the market but there is a very tough competition between Tropicana and real packed juice. I found that the price of Tropicana 1lt. premium gold (sugar free) juice is expensive than other packed juice. There is large number of medium class family and they are not able to pay much money for packed juice. When the customer comes to the shopkeeper for buying packed juice in modern trade, they observe that there are so many brands are available which are less expensive than Tropicana, so they want to buy other brand, which are cheaper than Tropicana.

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BIBLIOGRAPHY:
Philip Kotler (2002), Marketing management Prentice Hall of India, New Delhi, Eleventh Edition. Kotler and Armstrong (2001), Principles of marketing Prentice Hall of India, New Delhi. Gupta and Rajan Nair (2002),Marketing Management Sultan Chand & Sons, New Delhi, Seventh Edition. Memoria and joshi (1987), Principles and practice of marketing Mc Graw Hill Company, Ryerson, Eighth Edition. C.R. Kothari (2003), Research methodology Wishwa Prakashan, Mumbai. Leon G.schiffman & Leslie Lazar Kanuk (20030, Consumer Behaviour Pearson Education, New Delhi.

Web site:
http://www.pepsi.com http://www.tropicana.com http://www.pepsicoindia.com www.google.com www.pepsico.com

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ANNEXTURE

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QUESTIONNAIRE ON CONSUMER BEHAVIOUR ON SOFT DRINKS:

Name: Age: (a) 15-20 (b) 21-25 (c) 26-30 (d) 31 & above

Gender: (a) male (b) Female Occupation: Income: (a) 1 3 Lakhs (b) 3 5 Lakhs (c) 5 Lakhs & above Q1. Which of the following drinks you drink the most? Carbonated drinks Q2. At which brand would you rely? Pepsi Coke Fruit based drinks

Q3. How many times you take drinks daily. 1time 2times 3times 4times

Q4.What matters you the most. Taste Quality Price

Q5. On what occasions you prefer to drink soft drinks. On occasion as such I drink them as and when I feel like Q6. Which is your most preferred channel for purchasing soft drinks? Supermarket Pan shop Retail/Grocery store Q7. You have visited a grocery/retail store and it has the following brands stacked up in the refrigerator. What will you buy? PepsiCo [Pepsi, 7Up, Mountain Dew, Miranda] Restaurant others

Coca-Cola [Coke, Sprite, Fanta]

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Others Q8. What quantity you usually prefer to buy? 200-250 ml (Tetra pack) 600 ml Q9.Promotions offered by which company are the best? Pepsi Coke 300ml 1 litre

Q10. Television advertisement by drink companies help in increasing sales of soft drinks. Yes No

Q11.What is your opinion about Pepsi. Good Satisfactory Bad

For Q12- Q17, rate the importance of following for purchasing a soft drinks on a scale of 1 to 5, where 1 2 3 4 5

Least important Q12. Q13. Q14. Q15. Q16. Q17. Availability & convenience Price Advertisement Packing Brand ambassador Visual appeal of packaging 1 1 1 1 1 1 2 2 2 2 2 2

Most important 3 3 3 3 3 3 4 4 4 4 4 4 5 5 5 5 5 5

Q18.Kindly offers your suggestions:

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