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CHAPTER-I

INTRODUCTION

1.1 Introduction
Soft drink consumption has become a highly visible and controversial public
health and public policy issue. Soft drinks are viewed by many as a major contributor to
obesity and related health problems and have consequently been targeted as a means to
help curtail the rising prevalence of obesity, particularly among children. Soft drinks have
been banned from schools in Britain and France, and in the United States, school systems
as large as those in Los Angeles, Philadelphia, and Miami have banned or severely
limited soft drink sales. Many US states have considered statewide bans or limits on soft
drink sales in schools, with California passing such legislation in 2005. A key question is
whether actions taken to decrease soft drink consumption are warranted given the
available science and whether decreasing population consumption of soft drinks would
benefit public health. The issue is not new.

In 1998, the Center for Science in the Public Interest published a report entitled
Liquid Candy: How Soft Drinks are Harming Americans' Health. The report examined
statistics relating to the soaring consumption of soft drinks, particularly by children, and
the consequent health ramifications including tooth decay, nutritional depletion, obesity,
diabetes, and heart disease. It also reviewed soft drink marketing and made various
recommendations aimed at reducing soft drink consumption. These beverages lead to
energy over consumption; whether they displace other foods and beverages and, hence,
nutrients; whether they contribute to diseases such as obesity and diabetes; and whether
soft drink marketing practices represent commercial exploitation of children.

Similar positions have been taken by other trade associations such as the British
Soft Drinks Association and the Australian Beverages Council. Legislative and legal
discussions focusing on soft drinks sales often take place on political and philosophical
grounds with scant attention to existing to existing science.

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Our objectives were to review the available science, examine studies that involved
the use of a variety of methods, and address whether soft drink consumption is associated
with

 Increased energy intake,


 Increased body weight,
 Displacement of nutrients,
 Increased risk of chronic diseases.

Health Effects:

The consumption of sugar-sweetened soft drinks is associated with

 Obesity,
 Diabetes,
 Dental cavities,
 Low nutrient levels.

Experimental studies tend to support a causal role for sugar-sweetened soft drinks
in these ailments, though this is challenged by other researchers.

Many soft drinks contain ingredients that are themselves sources of concern:
caffeine is linked to anxiety and sleep disruption when consumed in excess, and the
health effects of high-fructose corn syrup and artificial sweeteners remain controversial.
Sodium benzoate has been investigated as a possible cause of DNA damage and
hyperactivity. Other substances have negative health effects, but are present in such small
quantities that they are unlikely to pose any substantial health risk. Benzene belongs to
this category: the amount of benzene in soft drinks is small enough that it is unlikely to
pose a health risk.

1.2 Industry Profile


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A soft drink is a beverage, often carbonated, that does not contain alcohol.
Carbonated soft drinks are more commonly known as soda, pop, tonic, or soda pop in
parts of the United States and Canada, or fizzy drinks in the U.K.; sometimes called
minerals in Ireland.

A soft drink is a non-alcoholic beverage. It is artificially flavored and contains no


fruit or pulp. India with population of more than 100 crores is potentially one of the
largest consumers markets in the world after China. The consumer market can be defined
as the market for products and services that are purchased by individuals as households
goods for their personal consumption. Soft drink is a typical consumer product purchased
by individuals to quench thirst and secondly for refreshment. Searching for the point of
Indian soft drinks we first document on Gold Spot, this was the first brand soft drink in
India.

1.2.1 Carbonated beverages


In late 18th Century, scientists made important progress in replicating naturally
carbonated mineral waters. In 1767 Englishman Joseph Priestley first discovered a
method of infusing water with carbon dioxide to make Carbonated water. When he
suspended a bowl of distilled water above a beer vat at a local brewery in Leeds,
England. His invention of Carbonated water, is the major and defining component of
most soft drinks. Priestley found water thus treated had a pleasant taste and he offered it
to friends as a refreshing drink. In 1772 Priestley published a paper entitled Impregnating
Water with Fixed Air in which he describes dripping oil of vitriol onto chalk to produce
carbon dioxide gas, and encouraging the gas to dissolve into an agitated bowl of water
Another Englishman, John Mervin Nooth, improved Priestley’s design and sold his
apparatus for commercial use in pharmacies. Swedish chemist Torbern Bergman invented
a generating apparatus that made Soft drink carbonated water from chalk by the use of
sulfuric acid.

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Bergman’s apparatus allowed imitation mineral water to be produced in large
amounts. Swedish chemist Jöns Jacob Berzelius started to add flavors (spices, juices and
wine) to carbonated water in the late 18th century.

1.2.2 Overview of the industry

The beverage market is worth $55 billion worldwide. The tides are turning for
many beverage categories. While the carbonated soft drink and beer categories are
merely treading water with flat sales, the energy drink category is surging ahead like
never before. Bottled water, ready-to drink coffee, ready-to-drink tea and sports drinks
follow close behind with substantial sales increase- drinks without added sugar, no beer,
along with developments in juice drinks and dairy-based drinks, are helping to turn
around sales in these categories. What follows is a category-by-category look at the state
of the beverage industry, including the top brands, new products, innovations and future
trendsetters.

In order to be successful in the marketplace, one has to think in terms of health


innovation, flavor innovation, ingredient innovation and specific age groups. These are
the factors that will shape the future of the beverage industry.
“Today’s consumers are concerned with overall health and wellness. As a result,
there is significant impact on food and beverage purchases. Many studies have shown
that consumers are as concerned with good health as they are about maintaining a high
quality of life.”
“The soft drink industry is training people to seek out new products, even the big
guys are coming out with limited-edition flavors, and consumers are beginning to see that
there is more flavor activity going on in the category. Whether that really nets anybody
any sales gains is another thing, but it is teaching consumers to seek out and try new
products. It’s also trying to create some excitement there.”

In spite of several challenges and restrictions faced by this industry, it is a ‘roll’


like never before. Customer preferences may have shifted, but they are still always on the
look out for a can of ‘coke’ or a new ‘flavored’ drink to quench their thirst.
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1.2.3 Soft drinks
Carbonated drinks are dominated by artificial flavors based on cola, orange and
lime with Pepsi and Coca-cola dominating the market. The entire part of the drink is
based on its artificial flavors and sweetening agents as no natural juice is used.

a) Soft Drink Industry at Global Level

The earliest soft drinks were sherbets developed by Arabic chemists and
originally served in the medieval Near East. These were juiced soft drinks made of
crushed fruit, herbs, or flowers. From around 1265, a popular drink known as Dandelion
& Burdock appeared in England, made from fermented dandelion (Taraxacum officinale)
and burdock (Arctium lappa) roots, and is naturally carbonated. The drink (similar to
sarsaparilla) is still available today, but is made with flavorings and carbonated water,
since the safrole in the original recipe was found to be carcinogenic.

The first marketed soft drinks (non-carbonated) in the Western world


appeared in the 17th century. They were made from water and lemon juice sweetened
with honey. In 1676, the Compagnie des Limonadiers of Paris was granted a monopoly
for the sale of lemonade soft drinks. Vendors carried tanks of lemonade on their backs
and dispensed cups of the soft drink to thirsty Parisians.

In the United States , soft drinks are sold in 3, 2, 1.5, 1 liter, 500 ml, 8,
12, 20 and 24 U.S. fluid ounce plastic bottles, 12 U.S. fluid ounce cans, and short eight-
ounce cans. Some Coca-Cola products can be purchased in 8 and 12 U.S. fluid ounce
glass bottles. Jones Soda and Orange Crush are sold in 16 U.S. fluid ounce (1 U.S. pint)
glass bottles. Cans are packaged in a variety of quantities such as six packs, 12 packs and
cases of 24, 36 and 360. With the advent of energy drinks sold in eight-ounce cans in the
US, some soft drinks are now sold in similarly sized cans. It is also common for
carbonated soft drinks to be served as fountain drinks in which carbonation is added to a
concentrate immediately prior to serving.

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In Europe, soft drinks are typically sold in 2, 1.5, 1 litre, 330 ml plastic
or 500 ml glass bottles; aluminums cans are traditionally sized in 330 ml, although 250
ml slim cans have become popular since the introduction of canned energy drinks and
355 ml variants of the slim cans have been introduced by Red Bull more recently. Cans
and bottles often come in packs of six or four. Several countries have standard recyclable
packaging with a container deposit, typically ranging from € 0.15 to 0.25. The bottles are
smelted, or cleaned and refilled; cans are crushed and sold as scrap aluminium.

In Australia, soft drinks are usually sold in 375 ml cans or glass or plastic
bottles. Bottles are usually 390 ml, 600 ml, 1.25 or 2 litres. However, 1.5 litres bottles
have more recently been used by the Coca-Cola Company. South Australia is the only
state to offer a container recycling scheme, recently having lifted the deposit from 5 cents
to 10 cents. This scheme is also done in the Philippines; people usually buy glass bottles
and return them in exchange for a small amount of money.

In Canada, soft drinks are sold in cans of 236 ml, 355 ml, 473 ml, and
bottles of 591 ml, 710 ml, 1 l, 1.89 l, and 2 l. The odd sizes are due to being the metric
near-equivalents to 8, 12, 16, 20, 24 and 64 U.S. fluid ounces. This allows bottlers to use
the same-sized containers as in the U.S. market. This is an example of a wider
phenomenon in North America. Brands of more international soft drinks such as Fanta
and Red Bull are more likely to come in round-figure capacities.

b) Soft Drinks in India

In India, soft drinks are available in 200 ml and 300 ml glass bottles, 250 ml
and 330 ml cans, and 600 ml, 1.25 l, 1.5 l and 2 l plastic bottles. The multinationals
Coca-Cola India and PepsiCo India Holdings saw their off-trade value shares of soft

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drinks in India decline over the review period, as other national and regional players
updated their brand portfolios and increased the penetration of their brands in India.
Bottled water players, such as Parle Bisleri and Dhariwal Industries, were particularly
successful in expanding their consumer base through a concerted effort to increase their
manufacturing capacity and move to newer regions within India. Dabur India and Parle
Agro benefited from their first mover advantage in being present in high-growth
emerging product categories, such as 100per cent juice and other non-cola carbonates.

Rising temperatures across the sub continent promises a hotter Indian summer
than the last, boosting sales of beverages and ice-cream and making sugar costly. Most
parts of the country recorded temperature 2-4 degrees Celsius above normal in the last 1-
1/2 months, and in certain places it exceeded 40 degrees C.

c) Market size and growth

• Cola products account for nearly 61-62 per cent of the total soft drinks
market.
• Two global majors’ Pepsi and coke dominate the soft drink market.
• The market is worth around Rs.5000 crores with growth rate of around
10-15 per cent.
• The production as soft drinks has increased from 5670 million bottles
in 1998-99 to 6230 million bottles in 1999-2000 industry sources.
• Growth market this year is expected to be 10-15per cent in value terms
and 20-22per cent in volume terms.
• However, the market for carbonated drinks is stagnating and not
growing as expected.

1.2.4 Statistical Growth Rates

Statistical analysis refers to a collection of methods used to process large amounts


of data and report overall trends. Statistical analysis is particularly useful when dealing

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with noisy data. Statistical analysis provides ways to objectively report on how unusual
an event is based on historical data.

1.2.4.1 Market growths of the Soft Drinks in India

An increase in the demand for a particular product or service over time. Market
growth can be slow if consumers do not adopt a high demand or rapid if consumers find
the product or service useful for the price level.

Table 1.1

Market growths of the Soft Drinks in India

Financial Year Market growth of soft drinks in Per cent

1990-91 - 1996-97 9

1996-97 - 2001-02 8

2001-02 - 2006-07 6

2004-05 - 2009-10 5

Source: www.mofpi.nic.in

This table shows that the market growth of the soft drinks from 1990-2010 in
India. The growth of soft drinks is not satisfied one because it is decreasing every seven
years. It is because the consumers are aware about the soft drinks.

1.2.6 Market Segmentation

A market segment is a sub-set of a market made up of people or organizations


sharing one or more characteristics that cause them to demand similar product and/or
services based on qualities of those products such as price or function.

1.2.6.1 Percentage growth of the Soft Drinks in various segments as well as in


various areas

Annualized growth rate of revenue expressed as a percentage, used in measuring


the performance of a new firm with little or no record of earnings.
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Table 1.2

Percentage growth of the Soft Drinks in various segments as well as in various areas

Segment Share (per cent)

North 24

East 18

West 32

South 26

Rural 30

Urban 70

Source: www.mofpi.nic.in

The above table shows that the Percentage growth of the Soft Drinks in various
segments as well as in various areas. In Urban area consumers percentage is really high
when compared to the rural area. It indicates that the urban people like soft drinks more
than rural people and also in west percentage of share value is increase

1.2.7 Product Variation

Development or incorporation of attributes that a product's intended customers


perceive to be different and desirable. Advertising and promotion of a product is based on
its differentiating characteristics.

1.2.7.1 Percentage growth of various Soft drink products

Annualized growth rate of revenue expressed as a percentage, used in measuring


the performance of a new firm with little or no record of earnings.

a) Cola Drinks:

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Table 1.3

Percentage growth of various Cola drink products

Company Share (per cent)

Thums Up 29

Coca Cola 25

Pepsi 18

Fanta 9

Mirinda 8

Limca 9

Overall Colas 62

Source: www.mofpi.nic.in

This table shows that the Percentage growth of various Soft drink
products. The share value of Pepsi is less than Coca cola. This indicates the product
variations in India.

b) Non-Cola Drinks

1.2.7.2 Percentage growth of various Non-Cola drink products

Annualized growth rate of revenue expressed as a percentage, used in measuring


the performance of a new firm with little or no record of earnings.

Table 1.4

Percentage growth of various Non-Cola drink products

Company Share (per cent)

Lemon 10

10
Orange 17

Mango 3

Source: www.mofpi.nic.in

This table shows that the Percentage growth of various Soft drink products. The
cola drinks have more share value than non-cola drinks. This indicates the product
variations in India

1.3 Company Profile

Pepsi International is a world renowned brand. It is a very well organized


multinational company, which operates almost all over the world. They produce, one of
best carbonated drinks in the world. Pepsi is a symbol of hygiene, quality and service, all
over the world. Pepsi is producing Cola for more than 100 years and it has dominated the
world market for a long time. Its head office is in New York. Its CEO is Steve
Reinemund and in India its CEO is Indira Nooyi.

Pepsi-Cola is a carbonated beverage that is produced and manufactured by


PepsiCo. It is sold in stores, restaurants and from vending machines. The drink was first
made in the 1890s by pharmacist Caleb Brad ham in New Bern, North Carolina in the
United States. On August 28, 1898 , "Brad's drink" was changed to "Pepsi-Cola" and
later trademarked on June 16, 1903 Caleb Brad ham bought the name "Pep Kola" from a
local competitor and changed it to Pepsi-Cola. "Pepsi-Cola" is an anagram for
"Episcopal" - a large church across the street from Brad ham’s drugstore. Caleb Brad ham
and his customers simply thought the name sounded well or the fact that the drink had
some kind of "pep" in it because it was a carbonated drink; they gave it the name "Pepsi".
As Pepsi was initially intended to cure stomach pains, many believe Brad ham coined the
name Pepsi from either the condition dyspepsia (stomach ache or indigestion) or the
possible one-time use of pepsin root as an ingredient (often used to treat upset stomachs).
It was made of carbonated water, sugar, vanilla, rare oils, and kola nuts. Whether the
original recipe included the enzyme pepsin is disputed.

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The brand was trademarked on June 16, 1903.There have been many Pepsi
variants produced over the years., including Diet Pepsi, Crystal Pepsi, Pepsi Twist, Pepsi
Max, Pepsi Samba, Pepsi Blue, Pepsi Gold, Pepsi Holiday Spice, Pepsi Jazz, Pepsi X
(available in Finland and Brazil), Pepsi Next (available in Japan and South Korea), Pepsi
Raw, Pepsi Retro in Mexico, Pepsi One, and Pepsi Ice Cucumber in Japan. Pepsi cola is
situated is an Industry that is dominator by two Competitors Coca Cola and of course
themselves. Although Pepsi and Coke basically go after all consumers who purchase soft
drink beverage Coca Cola targets it product at the head of household. According to the
beverage digest the customer base for soft drinks is whopping 95per cent of regular user
in United States. This represents the large number if potential customers for Pepsi Cola.

The Pepsi's advertising the campaigns are referring to the markets that marketers
refer to as Generation X. The Generation X consumer is profiled to be between the age of
18 to 29. They have high expectations in life and very active. They adopt a lifestyle of
living for today and not worry about long term goal. They also have a focus on the 12 to
18 year old market.

1.3.2 History
Pepsi is a world leader in convenient snacks, foods and beverages. Its revenue is
more than 39 billion Dollars and over 185, 000 employees. The company consists of
 Pepsi Co Americas Foods (PAF),
 Pepsi Co Americas Beverages (PAB) and
 Pepsi Co International (PI) Pepsi Co Americas
Foods include all Latin America Food and snacks businesses and all business in
Mexico. Pepsi Co America Beverages includes Pepsi Co Beverages all North America
and all Latin American Beverage Businesses. Pepsi Co International includes in the
United Kingdom, Europe, Africa Middle East and Asia. Pepsi Co Brands are available in
200 Countries .Some of the Pepsi Co Brands names are more than 100 year old but the
corporation is relative young. Pepsi Co was founded in 1965. Pepsi and Coca cola merge

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with each other and the name of the product is Pepsi Cola. Pepsi Co merged with the
Quaker oats Company in 2001.

1.3.3 PepsiCo Headquarters

PepsiCo World Headquarters is located in Purchase, New York, approximately 45


minutes from New York City. The seven-building headquarters complex was designed
by Edward Durrell Stone, one of America's foremost architects. The building occupies
10 acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens,
a world- acclaimed sculpture collection in a garden setting.

The collection of works is focused on major twentieth century art, and features
works by masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander
Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardens
originally were designed by the world famous garden planner, Russell Page, and have
been extended by François Goffinet. The grounds are open to the public, and a visitor's
booth is in operation during the spring and summer.

1.3.4 PepsiCo India Holdings Ltd

PepsiCo is the 18th largest American Company with an annual turnover of US$ 30
billion. PepsiCo has its worldwide operations in 190 countries. The Company employs
over half a million persons in its operations in Beverages and Snack Foods and
Restaurant across the world and is possible the largest employer.

1.3.5 Pepsi in India

PepsiCo has set up a fully integrated operation in India - manufacturing, research


and development, marketing, distribution, covering fruit / vegetable processing, exports,
snack foods and beverages, including franchising of Beverage territories for beverage
business and restaurants.

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It has set up a holding company to further accelerate growth in future through new
initiatives and joint ventures. PepsiCo started its operations in India in 1989 with the
formation of Pepsi Foods Limited. PepsiCo is fully committed to India and the national
objective of development of technology, and accelerating exports and employment.

Since its entry in 1989, it has brought in over Rs. 1000 Crores in foreign exchange,
as well as technology and know-how and used its global network to develop value-added
local and export businesses. The Company plans to invest Rs. 500 Crores in the next 2-3
years for its operations in India.

All of Pepsi’s businesses are employment intensive. PepsiCo employs over 35000
persons directly and indirectly in its beverage business and other operations. Pepsi and
its franchisees have over 44 Bottling Plants.

New projects have recently come up in West Bengal, Rajasthan, Gujarat,


Karnataka, Maharashtra and Uttar Pradesh. A project is coming up in Kerala. In addition,
the Company has two Food Processing Units in Punjab manufacturing - Snack Foods and
Soft Drink Concentrate. The Company also has a modern Rice Processing Unit in
Sonepat (Haryana).

The Company’s export turnover has risen from Rs. 9.5 Crores in 1989 to Rs. 200
Crores in 1996. The exports basket includes food items such as branded Basmati Rice,
Chili Paste, Tomato Paste, Soft Drink Concentrate, Glass Bottles, Custom made Trucks,
PET Performs, PET Resins, Plastic Crates and Packaging Material required by the
various PepsiCo system around the world.

PepsiCo today is the leader in the Cola and Orange segments of beverages in India
and enjoys leadership in soft drinks in many parts of the country. It has the following
brands – Pepsi Cola, 7-UP, Miranda, Dukes Mangola, Teem, Lehar Evervess, Dukes
Lemonade, Soda, Drinking water (Aquafina) & Pepsi Aha.

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The Snack Foods category includes Cheetos, Frito Lays Ruffles and Lehar range
of Snack Foods. Pepsi today has the best team of employees and franchisees in the
country and in a short span of 7 years has become a household name.

1. Vision and Mission

Our Vision articulates our dreams and goals for our business. It is our inspiration for
the results that we strive to achieve and our Mission articulates the purpose of our
business for us and the society at large. It can be considered in large measure as an
inflection point that will take the India business to new heights. No matter what location
or what function, we are all driven by the same vision to continue to be the fastest
growing convenient food company in India.

2. Organization Commitment

Organization values reflect our aspirations - the kind of company we want PepsiCo
to be. We express our values in the form of a commitment.

1. Sustained Growth
2. Empowered People
3. Responsibility and Trust
4. Care for Customers

3. Partnership with the Firm

PepsiCo also has formed partnerships with several brands it does not own, in
order to distribute these or market them with its own brands.

• Elma Chips, leader of the Brazilian chip’s market


• Frappuccino
• Starbucks Double Shot
• Starbucks Iced Coffee
• Mandarin (license)
• D&G (license)
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• Lipton Brisk
• Lipton Original Iced Tea
• Lipton Iced Tea
• Ben & Jerry’s Milkshakes
• Dole juices & juice drinks (license)
• Sunny Delight (produced by PepsiCo for Procter & Gamble) Enriching and
empowering lives.

4. Using local talent to run operations in India


Since its entry into India, PepsiCo has provided direct employment to more than
3,000 people in India. Indirect employment, including services, suppliers and distributors,
is estimated at more than 60,000 people.

• The project will create employment for 50000 people nationally


• 74 percent of the total investment will be in food and agro- processing.
Manufacturing of soft drinks will be limited to only 25 percent
• PepsiCo will bring advanced technology in food processing and provide thrust by
marketing Indian products abroad
• State of the art technology would be provided in the fields of food processing and
soft drink manufacturing at no foreign exchange outflow
• 50 percent of the total value of production will be exported
• The export-import ratio will be 5:1 over 10 years, which means that for every
dollar spends in foreign exchange on this project, the company will ensure an
export earning of 5 dollars for 10 years
• An agro-research center will be established by PepsiCo. No foreign brand name
will be used for domestic sales
• A substantial increase in government revenue due to consumer market expansion
and tax collection.

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The proposal concluded by stating how well the project fitted with broad
objectives of the economy and how it 'specifically supported national priorities in area
such as exports, agriculture, employment and technology.'

5. Sourcing and manufacturing base for exports


Today PepsiCo is amongst the major multinational exporters. Cumulative exports
over the last 10 years have crossed US$ 504 million. Pepsi’s export business today
supports the company’s core food and beverage businesses: Pepsi has emerged as a high
quality, competitive supplier to the worldwide.
6. Investment of the company

PepsiCo India and its partners have invested more than U.S.$1 billion since the
company was established in the country. PepsiCo provides direct and indirect
employment to 150,000 people including suppliers and distributors.

7. Sister Concern of PepsiCo

PepsiCo has built an expansive beverage and foods business. To support its
operations, PepsiCo has 43 bottling plants in India, of which 15 are company owned and
28 are franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3
state-of-the-art plants.

8. Employee Details

Madurai has a total workforce of 120 employees including workmen strength


of 85.

9. Workforce

• Executives & Managers – 43


• Associates - 124

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• TPBI - 40 & TPCI – 10
• NPCI – 600

10. Total Productive Maintenance

To aim at
• Zero failure
• Zero defects
• Zero disaster
To allow all the workers to participate
To improve over all equipments efficiency and reduction in cost
To build bright and clean work place
To make documents defined and clear
To reduce storage volumes and know the importance of cleaning
To train eyes and awareness for orderliness and fitness
To remove all necessary articles and eliminate personnel and duplicated files

1.3.6 Various functional departments


1. Production Department
Production department is producing the product in various processes. The
production team is deciding production plan. The production team is responsible for
planning the production & maintaining the resource availability i.e. (Men & Material).
The various activities in production are planning, water treatment syrup preparation bottle
inspection, filling, crowning, coding, filled bottle inspection and casings.

2. Marketing Department
• Finding the marketing demand
• Satisfying customers needs
• Maintaining proper relation between company and dealers
• Fulfilling the gap between the finished goods and sales

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3. Human Resource Department
Human Resource department plays a role in maintaining the industry and its
people to stay in peace & unity. This department has to take up the responsibility of
keeping the W.R. in a warm comfort, for which they have to look after all the work, is
starting from industrial relation to house keeping. Human Resources department is very
essential & as to be handled with care since it is a very sensitive area.

4. Finance Department
The finance department has to make payment whenever it is needed. The purchase
department purchase materials in consultation. The PepsiCo Company is automated and
follows the procedure in SAP (System Applications Product).

Functions of finance department are

• Purchase Accounting
• Material issue
• Distribution and Selling
• Branch Accounting
• Auditing
• Sales Tax

5. Quality Control Department


PepsiCo follows one quality standard across the globe. PepsiCo’s soft drinks
meet the local Indian standards (Health Ministry Standards for carbonated beverages
notified July 15, 2004) which compare to the best-in-class and most stringent
international standards being followed anywhere in the world.
PepsiCo products comply with the Prevention of Food Adulteration Act (PFA)
directive on the use of water in the preparation of soft drinks. PepsiCo also comply with
Bureau of Indian Standards (BIS) for packaged drinking water. PepsiCo use a six-stage
water purification process to deliver this standard consistently. PepsiCo products carry a

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quality assurance seal on them. The ‘One Quality Worldwide’ assurance seal appears on
the entire range of PepsiCo’s beverages.

6. Purchase Department
Purchasing refers to a business or organization attempting to acquire goods or
services to accomplish the goals of the enterprise. Though there are several organizations
that attempt to set standards in the purchasing process, processes can vary greatly
between organizations.

7. Shipping Department
• To receive order
• To maintain the record of glass bottles
• To appoint the fork lift operator
• To maintain the stock status report
• To prepare a production plan

1.3.7 ORGANISATION STRUCTURE

VICE
PRESIDENT

GENERAL MANAGER GENERAL


OPERATIONS MANAGER

FINANCE

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MANUFACTURING QC SHIPPING HR
MANAGER MANAGER MANAGER MANAGER

PRODUCTION QC SHIPPING HR
CO-ORDINATOR EXECUTIVE EXECUTIVE EXECUTIVE

FINANCE PRODUCTION
EXECUTIVE EXECUTIVE

FINANCE CO- PURCHASE STORES MIS


ORDINATOR EXECUTIVE EXECUTIVE EXECUTIVE

FINANCIAL
OPERATORS
EXECUTIVE

1.3.8 Ingredients
1. Carbonated water
2. Sugar
3. High fructose corn syrup
4. Color (Caramel)
5. Phosphoric acid
6. Caffeine
7. Emulsifier
8. Natural flavors.

1.3.9 Nutrients
1. Calories 100
21
2. Total fat (g) 0
3. Sodium (mg) 25
4. Potassium (mg) 10
5. Total carbohydrates (g) 27
6. Sugars (g) 27
7. Protein (g) 0
8. Caffeine (mg) 25

1.3.10 Competitors
1. Coca Cola
2. Parle
3. Kali mark

1.3.11 Product wise comparison of Pepsi with competitor Coca-Cola

• Pepsi Coke, Thumps Up


• Pepsi Aha
• Mirinda ( orange+lemon+apple) Fanta(orange),
• Teem Soda Limca
• Slice Maaza
• 7UP Sprite
• Mountain dew Kinley(soda)
• Diet Pepsi Diet Coke
• Aquafina(mineral water) Kinley (mineral water)

22
CHAPTER-II

REVIEW OF LITERATURE

2.1 Special concepts

1. Consumers

Consumers are the person who buys and utilize the final products.

2. Attitude

Attitude is a learned predisposition to behave in a consistently favourable or


unfavourable way with respect to a given object.

3. Consumer attitude

23
Consumer attitude is a learned predisposition to behave the consumer in a
consistently favourable or unfavourable way with respect to a given product.

4. Consumer Behaviour
Consumer behavior is a key success of any Company. Consumer behavior is
depending upon culture, value, traditions.
5. Brand

According to Keller what a distinguish a brand from its unbranded commodity


counter parts are the consumer perception and the feelings about the products
attributes and how they perform ultimately a brand resides in the minds of consumer.

6. Purchasing behaviour

A marketing firm must ascertain the nature of the customers buying behaviour, if
it is to market its product properly. In order to persuade a consumer to buy a product,
marketers try to determine the behavioural process of how a given product is purchased.

7. Post-Purchase Experience

Post-Purchase Experience is the experience that the consumer gets after using the
product. Consumer will use the product again if he feels that his satisfaction after use is
more or equal to the price of the product.

2.2 Literature Review

The review that follows covers with one exception, writings published in the last
years. The review is organized around the major themes that occur in literature on
consumer’s attitude. All the business is trying to make their products to succeed in the
market. But most of them do not attain their aim because of several reasons. Among them
most important reason is consumer attitude towards the product. To understand and
predict the consumer attitude is too difficult. There are many studies are conducted by the
researchers and the manufactures to understand the various consumer attitude. These
studies are very much helpful for our study also.

24
Noe (2000) says that the purpose of this paper is the study of factors responsible
for brand preference in FMCG products, increasing competition, more due to
globalization, is motivating many companies to base their strategies almost entirely on
building brands. Brand preference means to compare the different brands and opt for the
most preferred brand. This brand preference is influenced by various factors. In the
identification of factors affecting the brand preference, it was concluded that brand
persona is the most effective factor that affects the brand preference. This brand persona
deals with the personality aspects or the external attributes of brand, thus it can be said
that consumer prefer any brand by looking at the external attributes of a brand.

Stephen (2008) the intensity of colour and the flavour are the key drivers behind
consumer acceptance of beverages says a new study involving DANONE. But packaging
and labelling are not as important for winning over consumers, according to findings
published in the journal Food Quality and Preference, The study involved consumers at
different stages of development and highlights the importance of adopting a “sensory
marketing approach,” said the researchers from French research organisation Adriant.

Beverly (1998) said that the relative contributions of taste and health
considerations on consumer liking and purchase intent of cola drink. Eight types of
commercial cola drinks were evaluated by 305 adult consumers who also completed a
brief questionnaire on food habits. Data were analyzed using factor analysis. These data
suggest that in spite of current concern about reducing dietary fat, health remains
secondary to taste in the selection of cola drinks for consumers in this population.

Gibson (1998) Sugar-sweetened soft drinks are a special target of many obesity-
prevention strategies, yet critical reviews tend to be more cautious regarding the
etiological role of Sugar-sweetened soft drinks in promoting excess body weight.
Progress in reaching a definitive conclusion on the role of Sugar-sweetened soft drinks in
obesity is hampered by the paucity of good-quality interventions which reliably monitor
diet and lifestyle and adequately report effect sizes.

25
Libuda (2004) said that the replacement of soft drinks and other sugar-containing
beverages such as fruit juices by non-caloric alternatives seems to be a promising
approach for the prevention of overweight in childhood and adolescence. However, as the
cause of overweight and obesity is multifactorial, the limitation of soft drink consumption
needs to be incorporated in a complex strategy for obesity prevention. There is evidence
for a detrimental effect of soft drink consumption on body weight in childhood.

Watt (1997) says that a large proportion of pre-school children consume


considerable quantifies of soft drinks which have little or no nutritional value and are
high in carcinogenic non-milk extrinsic sugars. This has implications for children's dental
and general health. Recommendations for drinks consumption should be included in food
policy guidelines for pre-school children. Soft drinks were the most commonly consumed
drinks followed by whole milk and diet or low sugar varieties of soft drinks

CHAPTER-III

RESEARCH DESIGN

3.1 Scope of the study

The purpose of the study is to make an in-depth analysis of the current problem
relating to consumer attitude towards Pepsi under the current scenario of the Indian
industry.

3.2 Need for the study

• The need for this study is to find out the consumer attitudes towards company’s
products.
• To analyze the consumer perception about the product and impact of
advertisement of the company on the basis of questionnaire.
3.3 Objectives of the study

• To find out the consumer perception about the product

• To analyze the perception about Pepsi and its competitors

26
• To study the advertisement impact of the product

• To take advantage of the trend of health conscious consumers

• To deliver consumer value and satisfaction

• To convert our existing consumers into loyal consumers

• To increase market share and attract new consumers

3.4 Sample design

a) Sampling method

The sampling method used in the study on Consumer attitude towards Pepsi is
convenient sampling method

b) Sample size

The sample size selected for the study is 200 consumers.

3.5 Sources of Data Collection

Primary and Secondary methods of data collection was employed for getting
data’s for this study.

a) Primary data

Primary data’s were collected through questionnaires by direct interview and also
through online survey from the consumers.

b) Secondary data

Secondary data's were collected through journals, websites and other text books.

3.6 Area of the study


The area of the study covers the ultimate consumers all over the Tamil Nadu

3.7 Tools used for Analysis

• Simple Percentage method

27
• Weighted average method
• Multiple correlation

3.8 Period of the study

The period of the study is from 21st January 2010 to 15th May 2010

3.9 Limitations of the study

• Time constraints

• Some of the respondents refused to fill the questionnaires.

• The responses may vary as some people did not want to come up with real
answers.

• The people were busy in their own work so they might not have given
actual responses.

• The survey is conducted only in few areas of Chennai, Madurai,


Coimbatore, Tirunelveli, Nagercoil. Hence the results may vary in other
parts of the cities.

• Small sample size.

• And like any other research the limitation of personal bias of respondents
limits the scope of the study.

The findings are based on the survey conducted in the month of January to
March; the results may vary in other months.

28
CHAPTER-IV

ANALYSIS AND INTERPRETATIONS

4.1 Introduction

The following pages explain the analysis made based on the collected data’s. The
analysis regarding the following items are discussed, attitude of the consumers,
Demography wise analysis of the consumers, opinion of the consumers about the
variables. Various types of analysis are used. They are Simple percentage method,
weighted average method and multiple correlation analysis is expressed in the way of
tabulations.

4.2 Age group of Consumers


There are about 200 consumers taken in this survey to know the attitude about
Pepsi. This study was made to know the age of the consumers. This table shows the age
of the consumers since the age of the consumers vary from years shown below.

Table No.4.2

Age classification

Age group (in years) No. of consumers Percentage

15-18 6 3

19-22 29 14

29
22-25 80 40

25-28 37 15

28-39 8 4

Above 40 40 20

Total 200 100

Source: Primary data

The selected consumers of the study have been categorized based on the Age. The
Age of the consumers has been varied from the age 15 – above 40. Out of the samples
least percentage is three has been found in the category of 15-18 years and the neutral
percentage is 15 have been found in the category of 25-28 and the highest frequency 40
per cent have been found in the category 22-25 years.

From the above table it symbolizes that majority of the consumers are at the
youth level. The product covers only the young age of the people. 22-25 ages of the
consumers are like soft drinks because they do not bother about their health issues. They
just like to enjoy by having soft drinks and also they are consuming for quenching and to
satisfy their thirsty.

4.3 Gender of the Consumers


This study was made to know the number of male and female consumers. This
study was made to know the number of Male and Female consumers. This table shows
the gender of the consumers.

Table No.4.3

Gender Classification

Gender No. of consumers Percentage

Male 76 38

Female 124 62

Total 200 100

30
Source: Primary data

The selected consumers of the study have been categorized based on the Gender.
The Gender of the consumers has been varied as Male and Female. Out of the samples
least percentage 38 can be found in the category of Male and the highest percentage 62
have been found in the category Female.

Majority of the consumers are Female. This study’s main motive is to find out the
feedback of the females, Since they are the best to give nutritious foods to their families.

4.4 Salary of the consumers


Consumers are mainly with different designations and their salaries will differ
according to their designations they hold. This study was made to know the salary of the
consumers. This table shows the salary details of the consumers.

Table No 4.4

Salary wise Classification

Monthly Salary No. of consumers Percentage


(in Rupees)

5000-12000 76 38

12000-17000 38 19

17000-22000 51 25

22000-30000 17 8

30000-40000 12 6

Above 40000 6 3

Total 200 100

Source: Primary data

The selected consumers of the study have been categorized based on Salary. The
Salary of the consumers has been varied from Rs.5000 – above Rs.40000. Out of 200

31
samples least percentage is three can be found in the category of above Rs.40000 and the
neutral percentage is 25 have been found in the category of Rs.17000- Rs.22000.

Majority of the consumers are at the Salary of Rs.5000- Rs.12000. The


consumers in the salary group Rs.5000- Rs.12000 are consuming soft drinks because soft
drinks cost is lesser than the cost of fruit juices. Rs.17000- Rs.22000 of the salary group
consumers are consuming because of taste. Above Rs.40000 salaries group consumers
are health conscious consumers, so they are not interested to consume the soft drinks. The
consumers who are all consuming soft drinks above Rs.40000 salary group are all
depends in Software industries.

4.5 Education of the consumers


The consumers may be educated in different ways. This study was made to know
their educational qualifications. This table shows the Education of the consumers.

Table No 4.5

Education Classification

Educational Qualification No. of consumers Percentage

Post graduate 31 16

Professional degree 97 48

Under graduate 54 27

Up to 12th std 8 4

Up to SSLC 10 5

Total 200 100

Source: Primary data

The selected consumers of the study have been categorized based on Education.
The Education of the consumers has been varied from Post graduate-Uneducated. Out of
the samples least percentage two is found in the category up to SSLC and the neutral
percentage is 16 have been found in the category of Post graduate and the highest
percentage 48 have been found in the category Professional degree.
32
Majority of the consumers are at the education of Professional degree. Most of
the Professionals are consuming soft drinks because of the culture which prevailing in
Corporate. Under graduate are consuming soft drinks when they were with their friends.
Up to 12th std and Uneducated consumers are not interested to drink soft drinks because
of the cost. These kinds of consumers prefer mixed fruit juices, Salt lime, Sorbet etc.

4.6 Occupation of the consumers


The consumers may hold various professions. This study was made to know their
profession which they belongs to this table shows the Profession of the consumers.

Table No.4.6

Occupational Classification

Occupation No. of consumers Percentage

Student 20 10

Employee 141 70

Entrepreneur 20 10

House wife 11 6

Others 8 4

Total 200 100

Source: Primary data

The selected consumers of the study have been categorized based on occupation.
The occupation of the consumers have been varied from student-others. Out of the
samples least percentage is can be found in the category of others and the neutral
percentage is 10 have been found in the category of entrepreneur and student and the
highest percentage 70 have been found in the category employee.

Majority of the consumers are at the occupation of consumers. House wives are
not interested to consume soft drinks because they are really aware about the health
effects of soft drinks, so they are avoiding soft drinks. Employees are consuming soft

33
drinks because its act like refreshment for them and also some of the employees taken in
the survey are all working in Software industries.

4.7 Likeliness of Soft drinks


Consumers may have different likeliness based on their attitude. This study was
made to know their likeliness towards the soft drinks. This table shows the Likeliness of
Soft drinks of the consumers.

Table No.4.7

Likeliness of Soft drinks

Likeliness of soft drinks No. of consumers Percentage

Yes 57 28

No 143 72

Total 200 100

Source: Primary data

The selected consumers of the study have been categorized based on their
likeliness to soft drinks 28 per cent of consumers are favoured towards the statement 72
per cent of the consumers are unfavoured towards the statement.

Majority of consumers dislike the soft drinks because of the carbonated drink and
many have a thought that it will increases diabetes and body weight.

4.8 Factors induces the consumer to buy Soft Drinks


There are so many factors which induces the consumer to buy the soft drinks.
This study was made to identify the factors. This table shows the consumer preference to
buy Soft drinks.

34
Table No.4.8

Inducing factor

Inducing factor No. of consumers Percentage

Taste 28 20

Variety 50 36

Status symbol 43 30

Price with quantity 19 14

Total 200 100

Source: Primary data

Majority of the consumers said that the variety which induces the consumer to
buy soft drink 20 per cent of the consumers said that taste which induces to buy soft
drinks 14 per cent of the consumers inferred that they are buying soft drinks for the price.

Most of the consumers are in fond of variety because the soft drinks have more
number of varieties like mango, apple, lime, coke, orange etc. No one responds for health
drink because all of the consumers know soft drinks are hazardous for health even they
are consuming the soft drinks. Some of the consumers were said that they are buying soft
drinks for price with quantity because instead of buying 200 ml if they buy two litres they
are saving more money.

4.9 Soft drinks really give the consumers a lift

There is much type of drinks which the consumer prefers and hence the study was
made to know whether the Soft drinks really give the consumers lift during the day. This
table shows the Soft drinks really give lift to the consumers.

35
Table No.4.9

Soft drinks really give the consumers a lift

Soft drink give lifts really No. of consumers Percentage


give lift to the consumers

Strongly agree 56 28

Agree 26 13

Neutral 15 8

Disagree 61 30

Strongly agree 42 21

Total 200 100

Source: Primary data

Most of the consumers strongly agree that the soft drinks really give a lift during
the day and 28 per cent of the consumers were strongly disagreed and 8 per cent of the
consumers were in neutral.

Most of the consumers said that soft drinks really give you a lift during the day.
They are consuming soft drinks when they feel thirsty at that time soft drinks really give
a lift for them. Some of the consumers were strongly disagreed because most of the
consumers are at the age of above 40 and they don’t like to consume soft drinks; they are
really fond of the natural fruit juices.

4.10 Type of refreshment which experienced by the consumers

Normally drinks are preferred for the purpose of refreshment and the study was
made whether soft drinks really give refreshment to consumers. This table shows the type
of refreshment which experienced by the consumers.

Table No.4.10
36
Type of Refreshment

Type of refreshment No. of consumers Percentage

Quenching 123 62

Energetic 63 31

Happiness 14 7

Total 200 100

Source: Primary data

Most of the consumers said that they are consuming soft drinks for quenching; 31
per cent of the consumers were said consuming soft drinks really give energy. Some of
the consumers inferred that they are consuming for happiness.

Most of the consumers said that, during summer or during mid-noon they are
consuming soft drinks because of thirst, it’s really raise them and give energy when they
get tired. Some of the consumers consuming soft drinks when they meet their friends or
relatives at that time it gives happiness to them, so they are saying soft drinks are the
symbol of love.

4.11 Quantity of soft drinks consumed regularly by the consumers


Soft drinks are consumed in a greater frequency by the consumers. This study was
made to know the quantity of soft drinks consumed by the consumers. This table shows
the quantity of soft drinks consume regularly by the consumers.

Table No.4.11

Quantity of Soft drink

37
Quantity of soft drink No. of consumers Percentage

200 ml 99 49

300 ml 64 32

500 ml 3 1

2 litres 19 10

All 15 8

Total 200 100

Source: Primary data

Majority of the consumers are consuming 200 ml and 49 per cent of the
consumers are consuming 300ml, 10 per cent of the consumers are buying 2 litres.

Most of the people like 200 ml because it is a small quantity which is easy to
consume. Consumers are consuming 200 ml at the working place and also in the school
when they are tired. Some of the consumers drink two litres they are buying that for their
family, special occasions and celebrations. Most of the consumers drink 300 ml because
they are fond of soft drinks.

4.12 Favourite soft drink of consumers

Normally the consumers have their choice of their favourite soft drinks. This
study was made to know the soft drink of consumers. This table shows the favourite soft
drink of the consumers.

Table No.4.12

Favourite Soft Drink

Favourite soft drink No. of consumers Percentage


38
Pepsi 76 38

Coca cola 31 15

Both 7 4

Bovonto 47 24

Gold spot 2 1

Torino 37 18

Total 200 100

Source: Primary data

Most of the consumers are said Pepsi as their favourite drink, 15 per cent of the
consumers are like Coca Cola as their favourite drink, 24 per cent of the consumers are
like Bovonto as their favourite drink.

Majority of the consumers are having Pepsi because the brand has number of
varieties and also in consumers mind Pepsi has less health effects than other soft drinks.
Some of the consumers are consuming Torino when they are having Stomach upset or
during indigestion. Some of the consumers like the taste of Bovonto very much. Most of
the consumer said their second option is Bovonto because they like for the taste.

4.13 Mostly consuming product in Pepsi


Normally the consumers have their choice of their favourite soft drinks. This
study was made to know whether the drink is Pepsi. This table shows the consumers who
consume more in Pepsi product.

Table No.4.13

Products in Pepsi brand


39
Product in Pepsi brand No. of consumers Percentage

Pepsi 28 14

7up 25 13

Mirinda 22 11

Slice 92 46

Tropicana 9 5

Nimbooz 19 9

Pepsi diet 5 2

Total 200 100

Source: Primary data

Least percentage of consumers consuming Slice, 20 per cent consuming 7 up, 15


per cent of the consumers are consuming Nimbooz and seven per cent consuming
Tropicana, 4 per cent of the consumers are consuming Pepsi Diet.

Most of the consumers like Slice because they are in fond of Mango flavour, they
like the taste very much. Secondly the consumers are in fond of mirinda and 7 up because
these products are help for digestion. Some of the consumers like orange flavour so they
are in fond of Mirinda. For Nimbooz 19 consumers were responsed by this we can
conclude that advertisement for Nimbooz is really effective that’s why this much
consumers were aware about this product.

4.14 Preference of Brand


While preferring soft drinks the consumer may go for various choices. This study
was made to know the consumer preference of brand. This table shows the preference of
brand of the consumers.

Table No.4.14

Preference of Brand

Preference of brand No. of consumers Percentage

40
Brand 85 42

Taste 48 24

Price 23 12

Quantity 5 3

Flavour 21 10

Status 7 4

Others 11 9

Total 200 100

Source: Primary data

Most of the consumers inferred that they are prefer the Pepsi product because of
Taste, 42 per cent of the consumers prefer the Pepsi drink only for Brand. Ten per cent of
the consumers are in fond of Flavour.

Most of the consumers were said they prefer taste from Pepsi because they are
mostly in fond of Slice and then Tropicana, consumers like the taste of the drinks.
Secondly some of the consumers prefer Pepsi for price and also Pepsi has more number
of flavours.

4.15 Various occasions soft drinks are frequently used

There are different occasions for a consumer to prefer soft drinks. This study was
made to know the occasions during which the consumers consume more soft drinks. This
table inferred that the occasions during which the consumers consume more soft drinks.

Table No.4.15

Various occasions soft drinks are frequently used

Special occasions No. of Consumers Percentage

Feeling thirsty 102 51

Parties/celebration 66 33

Without any reason 32 16


41
Total 200 100

Source: Primary data

Large amount of the consumers said that they are consuming only when they feel
thirsty, 33 per cent of the consumers inferred they are consuming when they are at
parties. Some of them are drinking soft drinks without any reason.

Most of the consumers are consuming soft drinks when they are in parties or
celebration because it symbolize the status of the consumers. Some of the consumers are
drinking when they are feeling thirsty they are consuming drinks at their working
premises.

4.15 Places where soft drinks consumed.


Soft drinks may be consumed at different places. This study was made to know
the choice of places where they consumes.

Table No.4.16

Places where soft drinks consumed.

Places No. of consumers Percentage

At home 28 14

At work/school/college 52 26

In a bar/restaurant 35 18

At party 85 42

Total 200 100

Source: Primary data

Most of the consumers are consuming soft drinks usually at party, 26 per cent of
the consumers are consuming soft drinks usually at work/school/college home. Fourteen
per cent of the people are consuming at home.

42
The consumers are consuming soft drinks at their working premises or at school
or at college they consuming to satisfy their thirsty or to energize their body. 35 are
consuming at Bar or Restaurant, at thee they are using cola drinks only. 28 consumers are
buying soft drinks for their home to serve their relatives.

4.16 Consumption of soft drinks is more than water per day


Since water is consumed usually by the consumer. This study was made to know
the consumption of soft drinks is more than water per day. The table shows the
consumers consuming soft drinks more or less than water.

Table no.4.17

Consumption of soft drinks

Consumption of soft No. of consumers Percentage


drinks

Agree 84 42

Neutral 13 7

Disagree 41 20

Strongly disagree 62 31

Total 200 100

Source: Primary data

No one responds for strongly agree, 20 per cent of the consumers responds
disagree for consumption of soft drinks is more than water on an average day. 31 per cent
strongly disagreed for this question.

Most of the consumers are strongly disagree for this question; they are drinking
water more than soft drinks. Seventeen consumers are agreeing for this question they are
drinking soft drinks when they are having their lunch. Mostly females are drinking soft
drinks more than water a day. Their water consumption is ¼ litre and consumption of soft
drinks is averagely ½ litre.

43
4.17 Unit of soft drinks which consumed per day
The consumers may intake some average quantity of liquid items per day. This
study was made to know the unit of soft drinks which consume per day by the consumers.

Table No.4.18

Unit of soft drinks consumed per day

Unit of soft drinks No. of consumers Percentage

1 to 3 120 60

4 to 5 24 12

6 to 8 56 28

Total 200 100

Source: Primary data

Most of the consumers are drinking soft drinks 1 to 3 glasses in a day. Twelve per
cent of the consumers are drinking soft drinks 4 to 5 glasses in a day. 28 per cent of the
consumers are drinking soft drinks 6 to 8 glasses in a day.

Most of the consumers are consuming 1 to 3 glasses per day to lift their energy,
24 consumers are consuming 4 to 5 glasses per day because the like the taste of the soft
drinks, 56 consumers are consuming 6 to 8 glasses are fond of Flavour and taste of the
soft drinks.

4.19 Advertisement induces the consumers to purchase the soft drinks.

Advertisements are the most important factor which induces things. This study
was made to know whether the advertisement induces the consumers to purchase the soft
drinks consumers.

44
Table No.4.19

Advertisement induces the consumers to purchase the soft drinks

Advertisement induce the No. of consumers Percentage


consumers to purchase the
soft drinks

Yes 160 80

No 40 20

Total 200 100

Source: Primary data

Some of the consumers are said advertisement does not induce you to purchase
soft drinks, 80 per cent of the consumers are said advertisement also induces you to
purchase soft drinks.

Most of the consumers are purchase the products due to advertisements, most of
the consumers are induce due to television, some of them are buying soft drinks due to
the Brand ambassador.

4.20 Type of advertisement induces you to purchase soft drinks

Advertisements are of different types. Each advertisement has its creativity which
induces the consumer. This study was made to know whether the advertisement induces
the consumers to purchase the soft drinks consumers.

45
Table No.4.20

Type of advertisement induces you to purchase soft drinks

Advertisement media No. of consumers Percentage

Television 166 83

Magazines 21 11

Display 13 6

Total 200 100

Source: Primary data

Most of the consumers are induced to purchase the soft drinks, 6 per cent of the
consumers are induced by display, and 11 percent are induced by magazines.

Most of the consumers are buying soft drinks due to television. They are really
attracted by the advertisement and also by the brand ambassador. The consumers are
watching the advertisements carefully and they capture the message which is given by the
company. Very few consumers only said due to display they are buying the Pepsi drinks.
21 consumers are buying the soft drinks due to the Magazines.

4.21 Word of mouth induces neighbours or friends or relatives to buy Pepsi

Great way of purchasing a product is through the recommendations and this


study was made whether the consumers of Pepsi will recommend the usage of Pepsi
product to your neighbours or friends or relatives.

Table No.4.21

Word of mouth induces neighbours or friends or relatives to buy Pepsi

46
Recommendation of the No. of consumers Percentage
usage of Pepsi to their
neighbours

Yes 144 72

No 56 28

Total 200 100

Source: Primary data

Most of the consumers have said they will recommend the usage of Pepsi product
to their neighbours or friends or relatives. Some of the consumers have said they will not
recommend the usage of Pepsi product to their neighbours or friends or relatives.

Large number of consumers will recommend about the Pepsi products neighbours
or friends or relatives. Through Word of Mouth they are recommend the products Brand,
Variety, Price etc., 56 consumers will not recommend the Pepsi products because they are
thinking that the product is hazardous to health.

4.22 Satisfaction level of consumers

Consumer plays vital role to buy the product. This study was made to know the
satisfaction level of Pepsi product.

Table No.4.22

Satisfaction level of Pepsi product

Satisfaction level No. of consumers Percentage

Yes 151 65
47
No 49 35

Total 200 100

Source: Primary data

Most of the consumers are satisfied with the products and 35 per cent of the
consumers are not satisfied with the consumers.

Most of the consumers said they are satisfied with Pepsi, because the company
fulfills the need of the consumers. But 49 consumers are said that they are not satisfied
with Pepsi products because the consumer expectation is more and that should be known
by the company.

4.23 Expected changes in Pepsi by consumers


Since Pepsi is one of the most preferable product. This study was made to know
the changes which expect in Pepsi by the consumers.

Table No.4.23

Expected changes in Pepsi by consumers

Changes expect in Pepsi No. of consumers Percentage

Taste 20 6

Price 6 7

48
Quantity 23 27

Flavour 26 17

Packages 103 27

Any other 24 28

Total 200 100

Source: Primary data

Most of the consumers are asking about the quantity and secondly 17 per cent of
the consumers are said that they need the flavour. Fifteen per cent were said they want
some changes in packaging, and also they are expecting good taste and price.

Some of the consumers want changes in packages because the package will attract
the consumer to buy the product. Some of the consumers are saying that the quantity of
the products is so less so consumer’s expectation is to increase the quantity.

4.24 Soft drink is healthy or not.


In consumer’s mind soft drinks is the substitute which energizes the body. This
study was made to know the consumer attitude towards Pepsi and in consumer mind soft
drinks is healthy or not.

Table No.4.24

Soft drink is healthy or not.

Position of soft drinks No. of consumers Percentage

Yes 0 0

No 200 100

Total 200 100

Source: Primary data

No one answer soft drinks are healthy. Two hundred consumers were said soft
drinks are not healthy.
49
Most of the consumers said that soft drinks is unhealthy to human health but most
of the consumers are drinking soft drinks even they are aware about the products because
the taste and variety is the reason which makes the consumer to buy soft drinks.

Hazardous effects that the consumers are aware about consuming such product.

Hazardous effect which is in the product affects the health. This study was made
to know the hazardous effects that the consumers are aware about consuming such
product.

Table No.4.25

Hazardous effects that the consumers are aware about consuming such product.

Hazardous Effect No. of consumers Percentage

Obesity 66 33

Diabetes 73 36

Dental Cavities 23 11

Low nutrient level 6 3

All the 4 21 10

Any other 11 5

Total 200 100

Source: Primary data

50
Most of the consumers responded that the soft drink causes Obesity and Diabetes.
Ten per cent of the consumers said that they are aware about the hazardous effect.
Twenty three per cent of the consumers said they are aware about the dental cavities.

Most of the consumers aware about the effects which cause hazard to our health.
Even after they are very eager to consuming the soft drinks. Most of the consumers are
drinking soft drinks for making joy with their friends. Even though there is a lot of health
hazardous they are buying soft drinks and consuming it.

4.25 Consumer’s preferable drink other than Soft drinks and water
Consumer’s preferable drink other than Soft drinks and water because the
new trend of the consumers is health conscious. So they are preferring fresh juices
other than soft drinks and water.

Table No.4.26

Consumer’s preferable drink other than Soft drinks and water

Preferred drinks No. of consumers Percentage

Fresh juices 45 22

Shakes 68 34

(Milk/Ice cream/Fruit)

Lassie 39 20

Sorbet 48 24

Total 200 100

Source: Primary data

Most of the consumers are in fond of Fresh juice. Thirty four per cent of the
consumers are in fond of Milk shakes. Twenty per cent of the consumers are like to
consume Lassie and 24 per cent of the consumers are like to have Sorbet

51
Comparing these details most of the consumers are in fond of Milk shakes, ice
creams and fruit juices. The consumers like the taste of milk shakes. Secondly equal
numbers of consumers are in fond of Fresh juices and Sorbet. Consumers are in fond of
these items because of the taste and also it is healthy.

4.27 Consumers give more value to which type of juices.

The consumers will normally juices as a drink and this study was made to know
that which type of juice will be more value to the consumer. This table will show the type
of juices.

Table No.4.27

Consumers give more value to which type of juices.

Fresh juices No. of consumers Percentage

Slice 63 31

Tropicana 30 15

Maaza 45 22

Frooti 28 14

Real 18 9

Jumping 16 8

Total 200 100

Source: Primary data

Most of the consumers are inferring that slice gives them more value. Some of
consumers say Tropicana. Some of the consumer says that Maaza gives them more value.
Some of the consumers are in fond of Real fruit juice. Eight are in Jumping.

52
Most of the consumers are drinking slice and maaza because of the flavour and
taste. Most of the consumers are consuming Tropicana for orange flavour.

4.28 Various occasions fresh juices are frequently used


There are different occasions for a consumer to prefer fresh juices. This study was
made to know the occasions during which the consumers consume more fresh juices.
This table inferred that the occasions during which the consumers consume more fresh
juices.

Table No.4.28

Various occasions fresh juices are frequently used.

Special occasions No. of consumers Percentage

Feeling thirsty 164 82

Parties/celebration 36 18

Total 200 100

Source: Primary data

Most of the consumers said that they are consuming only at feeling thirsty, 18 per
cent of the consumers inferred they are consuming when they are in parties.

Consumers are drink fresh juices because in the consumer’s mind fresh juices are
god for health and for the taste. Consumers are drink fresh juices without reason because
it is healthy.

4.29 Frequency of Pepsi in shop with other products.


Normally the retailers will purchase soft drinks which are mostly preferred by the
consumers and this study was made to know whether Pepsi is the most preferable one by
them.

53
Table No.4.29

Frequency of Pepsi in shop with other products.

Frequently available No. of consumers Percentage


compare to other products

Yes 160 80

No 40 20

Total 200 100

Source: Primary data

Most of the consumers were said that they get Pepsi’s product frequently in shops
when comparing to other companies product. Some of the consumers were said that they
are not getting Pepsi’s product frequently in shops when comparing to other companies
product.

Some of the consumers said that if they want a specified quantity they have to go
a long distance and they cannot buy their preferred in the retailer shop. Some of the
retailer shop only having all the type of quantity.

4.30 Consumer can get their preferred quantity instantly


Normally the retailers will purchase soft drinks which are mostly preferred by the
consumers and this study was made to know whether the consumers get their preferable
quantity instantly.
54
Table No.4.30

Consumer can get their preferred quantity instantly

Preferred quantity No. of consumers Percentage

Yes 147 75

No 53 25

Total 200 100

Source: Primary data

Most of the consumers can get their preferred quantity instantly. Some of the
consumers cannot get your preferred quantity instantly.

Consumers agree that they can get their preferred quantity instantly. During
emergency they can get their preferred quantity at any time, at any places.

4.31 Attractive package enhancing the consumer to buy Pepsi.


Usually the companies will give attractive packages to enhance the consumers and
this study was made to know whether Pepsi has the attractive package to attract. This
table shows the acceptance level of the consumers.

55
Table No.4.31

Attractive package enhancing the consumer to buy Pepsi.

Attractive package No. of consumers Percentage

Strongly agree 5 3

Agree 97 47

Neutral 40 20

Strongly disagree 58 30

Total 200 100

Source: Primary data

Most of the consumers are agreed. Some of the consumers are neutral. Thirty per
cent of the consumers are strongly disagree.

Most of the consumers said packaging is an important one. It should be attractive


one. It will definitely enhancing the consumers to buy Pepsi. Forty consumers were in
neutral, they are saying this is also a factor to induce the customer to buy Pepsi. Some of
the consumers are saying strongly disagree because it is not a factor to induce consumer
to buy the products.

4.32 Comparison of soft drinks with fresh juices.


Usually Fresh juices are preferred by the consumers and this study was made to
know the comparison of Pepsi with fresh juices. This table shows the comparison levels
of Pepsi.

Table No.4.32
56
Comparison soft drinks with fresh juices.

Comparing soft drinks No. of consumers Percentage


with fresh juices

Equivalent to fresh juices 39 20

Have artificial added flavor 150 75

Healthy with preservatives 11 5

Total 200 100

Source: Primary data

Seventy five per cent said soft drinks have artificial added flavour. Some of the
consumers said it is equivalent to fresh juices. Least amount of the consumers said it has
healthy preservatives.

Least amount of consumers said soft drinks having healthy with preservatives
because they all are drinking newly entered Tropicana and Pepsi diet. Most of the
consumers were said soft drinks have artificial added flavour because they all are aware
about soft drinks are unhealthy for human. The consumers consuming slice and maaza
they are saying that the soft drinks are equivalent to fresh juices

4.33 WEIGHTED AVERAGE METHOD

Weighted average method is used as a third statistical tool. From this calculation
average was calculated and the weight is determined based on the highest value of them.
Weights are taken from the satisfactory levels computed from the tables.

4.36 Comparison between Soft drinks really give lift to the consumers, Consumption
of soft drinks and package enhancing the consumer to buy Pepsi package enhancing
the consumer to buy Pepsi

57
Comparison between Soft drinks really gives lift to the consumers, Consumption
of soft drinks and package enhancing the consumer to buy Pepsi package enhancing the
consumer to buy Pepsi because it helps to know the average consumers of Pepsi.

Table No.4.36

Factor W1(5) W2(4) W3(3) W4(2) W5(1) Total

Soft drinks really give lift to the 34 11 15 26 56 140


consumers

Consumption of soft drinks 62 41 13 17 0 133

Attractive package enhancing 58 0 40 97 0 195


the consumer to buy Pepsi

Source: Computed from Table No. 4.9, Table No.4.17 and Table No.4.31

Soft drinks really give = ((34*5)+(11*4)+(15*3)+(26*2)+(56*1))/140

lift to the consumers = (170+44+45+52+56)/140

= 2.62

Consumption of soft drinks = ((62*5) + (41*4) + (13*3) + (17*2) + (0*1))/133

= (310+164+39+34+0)/133

= 4.11

Attractive package = ((58*5)+(0*4)+(40*3)+(97*2)+(0*1))/195

enhancing the consumer = (290+0+120+194+0)/195

To buy Pepsi = 3.09

58
Results

From the above calculations it is inferred that Consumption of soft drinks rank
first with average weighted score of 4.11, Attractive package enhancing the consumer to
buy Pepsi second with average weighted score of 3.09 and Soft drinks really give lift to
the consumers third with average weighted score of 2.62.

4.42 MULTIPLE CORRELATION

Multiple correlation is used when three or more variables are studied


simultaneously

Table No.4.42

MULTIPLE CORRELATION

59
A B C D E F

Age 1

Gender .045 1

Salary 134(*) .059 1

Education .100 .250(**) .399(**) 1

Profession .096 .244(**) .124(*) .199(**) 1

Likeliness .096 .008 .094 .049 .079 1


of soft
drinks

Source: Computed from Table No 4.2, Table No 4.3, Table No 4.4, Table No 4.5,
Table No 4.6 and Table No 4.7

* Correlation is significant at the 0.05 level (1-tailed)

** Correlation is significant at the 0.01 level (1-tailed)

1. Correlation between Age and Salary


From the table depicts correlation matrix of socio economic data and
likeliness of soft drinks. It shows both positive and negative relation exhibits between
the variables. Ages and salary have significant at the 0.05 level. It implies
consumption of soft drinks is directly related to the age and level of salary of the
consumer.
60
2. Correlation between Gender and Education
From the table depicts correlation matrix of socio economic data and
likeliness of soft drinks. It shows both positive and negative relation exhibits between
the variables. Gender and Education have significant at the 0.01 level. It implies
consumption of soft drinks is indirectly related to the Gender and level of Education
of the consumer.

3. Correlation between Salary, Education and Profession


From the table depicts correlation matrix of socio economic data and
likeliness of soft drinks. It shows both positive and negative relation exhibits between
the variables. Salary and Education have significant at the 0.01 level, It implies
consumption of soft drinks is indirectly related to the Salary and level of Education of
the consumer and Salary and Profession have significant at the 0.05 level. It implies
consumption of soft drinks is directly related to the Salary and Profession of the
consumer.

4. Correlation between Education and Profession


From the table depicts correlation matrix of socio economic data and likeliness of
soft drinks. It shows both positive and negative relation exhibits between the variables.
Education and Profession have significant at the 0.01 level. It implies consumption of
soft drinks is indirectly related to the Education and Profession of the consumer.

Multiple Correlation Analysis

4.43 Age Vs Preference of soft drinks by consumers

There are about 200 consumers taken in this survey to know the attitude
about Pepsi. This study was made to know the age of the consumers. This table shows the
age of the consumers since the age of the consumers vary from years shown below. It
helps to know the consumers who are consuming soft drinks influenced by age.

Table No.4.43

Age Vs Preference of soft drinks by consumers

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Age Yes No Total

15-18 2 4 6
(4 per cent) (3 per cent) (3 per cent)

19-22 5 24 29
(9 per cent) (17 per cent) (15 per cent)

22-25 31 49 80
(54 per cent) (34 per cent) (40 per cent)

25-28 10 27 37
(18 per cent) (19 per cent) (19 per cent)

28-39 2 6 8
(3 per cent) (4 per cent) (4 per cent)

Above 40 7 33 40
(12 per cent) (23.1per cent) (20per cent)

Total 57 143 200

Source: Primary data

It can be observed that the respondent’s preferences on the likeliness of soft


drinks varied significantly based on Age. As the Age of the consumers ascends, the
preferences over the soft drinks come down. 4 per cent of the consumers are in 15-18 age
categories agree that they prefer soft drinks, as against 3 per cent consumers who said
that they do not prefer soft drinks. Conversely, while comparing the consumers who are
in the second category (19-22 years), it can be observed that majority of consumers 17per
cent did not prefer soft drinks as against 9 per cent who prefer soft drinks and obviously
as the consumers ascends with age, the majority of the consumers who were above 40
years said that they do not prefer soft drinks 23 per cent as against 12 per cent who
preferred the soft drinks.

Majority of the consumers are at the youth level. The product covers only the
young age of the people. 22-25 ages of the consumers are like soft drinks because they do
62
not bother about their health issues. They just like to enjoy by having soft drinks and also
they are consuming for quenching and to satisfy their thirsty.

4.44 Gender Vs Preference of soft drinks by consumers

This study was made to know the number of male and female consumers. This
study was made to know the number of Male and Female consumers. This table shows
the gender of the consumers. This table shows that the consumers who are consuming
soft drinks influenced by gender.

Table no.4.44

Gender Vs Preference of soft drinks by consumers

Gender Yes No Total

Male 22 54 76
(39 per cent) (38 per cent) (38 per cent)

Female 35 89 124
(61 per cent) (62 per cent) (62 per cent)

Total 57 143 200

Source: Primary data

63
It can be observed that the respondent’s preferences on the likeliness of soft
drinks varied significantly based on Gender. In gender Male, About 39 per cent of the
consumers agree with the soft drinks and 38 per cent of the consumers do not agree with
the soft drinks. In gender Female, About 61 per cent of the consumers agree with the soft
drinks and 62 per cent of the consumers do not agree with the soft drinks.

Majority of the consumers are Female. This study’s main motive is to find out the
feedback of the females, since they are the best to give nutritious foods to their families.

4.45 Occupation Vs Preference of soft drinks by consumers

The consumers may hold various professions. This study was made to know their
profession which they belongs to this table shows the Profession of the consumers.
Profession is the main source which enhances the identification of the consumers attitude.

Table 4.45

Occupation Vs Preference of soft drinks by consumers

Occupation Yes No Total

Student 6 14 20
(11 per cent) (10 per cent) (10 per cent)

Employee 44 97 141
(77 per cent) (68 per cent) (71 per cent)

Entrepreneur 2 18 20
(4 per cent) (13 per cent) (10 per cent)

House wife 4 7 11
(7 per cent) (5 per cent) (6 per cent)

Others 1 7 8

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(2 per cent) (5 per cent) (4 per cent)

Total 57 143 200

Source: Primary data

It can be observed that the respondent’s preferences on the likeliness of soft


drinks varied significantly based on Profession. In profession group of student, About 11
per cent of the consumers agree with the soft drinks and 10 per cent of the consumers do
not agree with the soft drinks. In profession group of Employee, About 77 per cent of the
consumers agree with the soft drinks and 68 per cent of the consumers do not agree with
the soft drinks. In profession group of Entrepreneur, About four per cent of the
consumers agree with the soft drinks and 13 per cent of the consumers do not agree with
the soft drinks. In profession group of House wife, about seven per cent of the consumers
agree with the soft drinks five per cent of the consumers do not agree with the soft drinks.
In profession group of others,

Majority of the consumers are at the Professional of Consumers. House wives are
not interested to consume soft drinks because they are really aware about the health
effects of soft drinks, so they are avoiding soft drinks. Employees are consuming soft
drinks because its act like refreshment for them and also some of the employees taken in
the survey are all working in Software industries.

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CHAPTER-V

FINDINGS, SUGGESTIONS AND CONCLUSION

5.1 Findings

• The product covers only the young age group of the people. Majority of the
consumers from 22-25 ages of the consumers are like soft drinks because they do not
bother about their health issues. They just like to enjoy by having soft drinks and also
they are consuming for quenching and to satisfy their thirsty.
• Majority of the consumers taken for the study are Female. This study’s main motive
is to find out the feedback of the females, since they are the best to give nutritious
foods to their families.
• Majority of the consumers are at the Salary of Rs.5000- Rs.12000. The consumers in
the salary group Rs.5000- Rs.12000 are consuming soft drinks because soft drinks
cost is lesser than the cost of fruit juices. Some of the respondents having Rs.17000-
Rs.22000 of the salary group consumers are consuming because of taste. Above
Rs.40000 salaries group consumers are health conscious consumers, so they are not

66
interested to consume the soft drinks. The consumers who are all consuming soft
drinks above Rs.40000 salary group are all depends in Software industries.
• Majority of the consumers are at the education of Professional degree. Most of the
Professionals are consuming soft drinks because of the culture which prevailing in
Corporate. Under graduate are consuming soft drinks when they were with their
friends. Up to 12th std and Uneducated consumers are not interested to drink soft
drinks because of the cost. These kind of consumers are preferring Mixed fruit juices,
Salt lime, Sorbet etc
• Majority of the consumers are at the Professional of Consumers. House wives are not
interested to consume soft drinks because they are really aware about the health
effects of soft drinks, so they are avoiding soft drinks. Employees are consuming soft
drinks because its act like refreshment for them and also some of the employees taken
in the survey are all working in Software industries.
• Majority of consumers dislike the soft drinks because of the carbonated drink and
many have a thought that it will increases diabetes and body weight.
• Most of the consumers are in fond of variety because the soft drinks have more
number of varieties like mango, apple, lime, coke, orange etc. No one responds for
health drink because all of the consumers know soft drinks are hazardous for health
even they are consuming the soft drinks. Some of the consumers were said that they
are buying soft drinks for price with quantity because instead of buying 200 ml if they
buy 2 litres they are saving more money.
• Most of the consumers said that soft drinks really give you a lift during the day. They
are consuming soft drinks when they feel thirsty at that time soft drinks really give a
lift for them. Some of the consumers were strongly disagreed because most of the
consumers are at the age of above 40 and they don’t like to consume soft drinks; they
are really fond of the natural fruit juices.
• Most of the consumers said that, during summer or during mid-noon they are
consuming soft drinks because of thirst, it’s really raise them and give energy when
they get tired. Some of the consumers consuming soft drinks when they meet their
friends or relatives at that time it gives happiness to them, so they are saying soft
drinks are the Symbol of Love.
67
• Most of the people like 200 ml because it is a small quantity which is easy to
consume. Consumers are consuming 200 ml at the working place and also in the
school when they are tired. Some of the consumers drink 2 litres they are buying that
for their family, special occasions and celebrations. Most of the consumers drink 300
ml because they are fond of soft drinks.
• Majority of the consumers are having Pepsi because the brand has number of varieties
and also in consumers mind Pepsi has less health effects than other soft drinks. Some
of the consumers are consuming Torino when they are having Stomach upset or
during indigestion. Some of the consumers like the taste of Bovonto very much. Most
of the consumer said their second option is Bovonto because they like for the taste.
• Most of the consumers like Slice because they are in fond of Mango flavour, they like
the taste very much. Secondly the consumers are in fond of mirinda and 7 up because
these products are help for digestion. Some of the consumers like orange flavour so
they are in fond of Mirinda. For Nimbooz some of the consumers were responsed by
this we can conclude that advertisement for Nimbooz is really effective that’s why
this much consumers were aware about this product.
• Most of the consumers were said they prefer taste from Pepsi because they are mostly
in fond of Slice and then Tropicana, consumers like the taste of the drinks. Secondly
some of the consumers prefer Pepsi for price and also Pepsi has more number of
flavours.
• Most of the consumers are consuming soft drinks when they are in Parties or
celebration because it symbolize the status of the consumers. Some of the consumers
are drinking when they are feeling thirsty they are consuming drinks at their working
premises.
• The consumers are consuming soft drinks at their working premises or at school or at
college they consuming to satisfy their thirsty or to energize their body. Thirty five
are consuming at Bar or Restaurant, at there they are using cola drinks only. The
consumers are buying soft drinks for their home to serve their relatives.
• Most of the consumers are strongly disagree for this question; they are drinking water
more than soft drinks. Some of the consumers are agreeing for this question they are
drinking soft drinks when they are having their lunch. Mostly females are drinking
68
soft drinks more than water a day. Their water consumption is ¼ litre and
consumption of soft drinks is averagely ½ litre.
• Some consumers are consuming 1 to 3 glasses per day to lift their energy, some of the
consumers are consuming 4 to 5 glasses per day because the like the taste of the soft
drinks, seven consumers are consuming 6 to 8 glasses are fond of Flavour and taste of
the soft drinks.
• Most of the consumers are purchase the products due to advertisements, most of the
consumers are induce due to television, some of them are buying soft drinks due to
the Brand ambassador.
• Most of the consumers are buying soft drinks due to television. They are really
attracted by the advertisement and also by the brand ambassador. The consumers are
watching the advertisements carefully and they capture the message which is given by
the company. Very few consumers only said due to display they are buying the Pepsi
drinks. The consumers are buying the soft drinks due to the Magazines.
• Consumers will recommend about the Pepsi products neighbours or friends or
relatives. Through word of mouth they are recommend the products Brand, Variety,
Price etc., consumers will not recommend the Pepsi products because they are
thinking that the product is hazardous to health.
• Most of the consumers said they are satisfied with Pepsi, because the company fulfills
the need of the consumers. But some of the consumers are said that they are not
satisfied with Pepsi products because the consumer expectation is more and that
should be known by the company.
• Some of the consumers want changes in packages because the package will attract the
consumer to buy the product. Some of the consumers are saying that the quantity of
the products is so less so consumer’s expectation is to increase the quantity.
• All the consumers included in this survey said that soft drinks is unhealthy to human
health but most of the consumers are drinking soft drinks even they are aware about
the products because the taste and variety is the reason which makes the consumer to
buy soft drinks. No one answer soft drinks are healthy.
• Most of the consumers aware about the effects which cause hazard to our health.
Even after they are very eager to consuming the soft drinks. Most of the consumers
69
are drinking soft drinks for making joy with their friends. Even though there is a lot
of health hazardous they are buying soft drinks and consuming it.
• Comparing these details most of the consumers are in fond of Milk shakes, ice creams
and fruit juices. The consumers like the taste of milk shakes. Secondly equal numbers
of consumers are in fond of Fresh juices and Sorbet. Consumers are in fond of these
items because of the taste and also it is healthy.
• Most of the consumers are drinking slice and maaza because of the flavour and taste.
Most of the consumers are consuming Tropicana for orange flavour.
• Most of the consumers are consuming fresh juices when they are in Parties or
Celebration because it symbolizes the status of the consumers. Some of the
consumers are drinking when they are feeling thirsty they are consuming drinks at
their working premises. It gives strength to the body and also it is not like soft drinks.
So consumers in all age like to drink fresh juices.
• Some of the consumers said that if they want a specified quantity they have to go a
long distance and they cannot buy their preferred in the retailer shop. Some of the
retailer shop only having all the type of quantity.
• Most of the consumers are saying that they are not getting 300 ml and 1.5 litre Pepsi.
Some of them are not getting Slice 300 ml. Sometimes Mirinda is not available in the
shops. Consumers are saying 300 ml and 500 ml of Nimbooz. Pepsi Diet drink is not
available in the shops not only in this particular area.
• Most of the consumers can get the preferred instantly. Some of the consumers cannot
get your preferred quantity instantly.
• A part of the consumers said packaging is an important one. It should be attractive
one. It wills definitely enhancing the consumers to buy Pepsi. Some of the consumers
were in neutral; they are saying this is also a factor to induce the customer to buy
Pepsi. Consumers are saying strongly disagree because it is not a factor to induce
consumer to buy the products.
• Most of the consumers said soft drinks have artificial added flavour. Some of them
said it is equivalent to fresh juices. Some of them said it has healthy preservative.
• An important finding that emerged out of the study was that 57 per cent of people like
to have soft drinks while 43% go for juices. (Economics Times, 17th march2009)
70
• Through the research it was conveyed that weekly consumption of soft drinks is
higher than the weekly consumption of juices.
• A majority of Indian consumers consume soft drinks and fruit juices at the time of
parties & celebrations.
• Most of the consumers in rural India consume soft drinks because of its taste and
price.
• Most of the consumers consume fruit juices because it is healthy.
• As it is seen that canned Juices enjoys the largest market share though they do contain
some preservatives but majority of the consumers consider it healthy.

5.2 Suggestions

• The company has to perform a detail demand survey at regular interval to know
about the unique needs and requirements of the customer.
• Standard drinks from the foreign countries must be taken to India, Since India has
consumers who prefer those kinds of quality products
• The company should make hindrance free arrangement for its customers/retailers
to make any feedback or suggestions as and when they feel.
• The entire Pepsi product should be displayed at one place so that the customers
can aware about the different brand of Pepsi
• In the bus stand, railway canteen, highway the Can and Pet bottles should be
made available every time because the public’s are busy there and the consumer
cannot wait
• Due to the high cost of soft drinks, a lot of times consumers prefer beverages like
tea, coffee or other drinks like sherbet and squashes.
• The company should focus to bring some more flavors and variety of schemes
rather then bring second and repeat same old one. It is always better to be first
than being better.
• The company must be aware of and keep at least the latest knowledge of its
primary competitors in market and try to make perfect anticipated efforts to meet
the same.
71
• The company should also use time to time some more and new attractive system
of word of mouth advertisement to keep alive the general awareness in the whole
market as a whole.
• The company should be always in a position to receive continuous feedback and
suggestions from its consumers as well as from distributors.
• The market tries to solve it without any delay to establish its own good credibility.
• The visibility of any product plays an important role in making the customer,
aware about it and is vital for the growth and development of any product.
• A strong watch should be kept on distributors also, because in some cases they are
found to be cheating the retailers and affecting the goodwill of the brand.
• In the survey conducted, it was suggested by most of the respondent that
government should have frequent quality check in order to promote sales and to
attain consumer satisfaction.
• Frequent consumption of soft drink will cause health problems.
• From the survey more than half of the respondent suggested that they prefer use
of plastic bottles instead of other.
• Advertisement acts as a very important role here. So if heavy advertisements are
carried out it will definitely increase purchase.
• It is also to be noted that government should also take guard of health of the
consumer, so appropriate measures are to be taken.
• Prices are to be reduced to increase sales, since the consumers are aware that they
are charged 10 times more than the price of the drink.
• If the quality is not improved than its better that superstar should stop promoting
unhealthy products.

5.3 Conclusion

• Pepsi is most popular amongst its users mainly because of its taste, brand
name, innovativeness Thus it should focus on good taste so that it can capture
the major part of the market. But most of the consumers prefer Slice as their
1st preference, and then Pepsi
72
• Visibility affects the sales of project in a very special way and in terms of the
advertisements lays is lacking behind mostly consumers remember the
advertisement because of the frequency of add and brand ambassadors,
creativity. After acquiring a new customer, there is lot of importance of its
retention also. This can be done only by providing extra flavours and good
taste.
• In today’s scenario, customer is the king because he has got various choices
around him. If the companies are not capable of providing him the desired
result the consumers will definitely switch over to the other provider.
Therefore to survive in this cut throat competition, the companies need to be
the best. Customer is no more loyal in today’s scenario, so the companies
need to be always on their toes.

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