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  2. 2. AKNOWLEDGEMENTFirst & foremost, I am very thankful to Ms.Rupali (Project Guides) whoshown keen interest in project and guided me in project work.Further, I would also like to thank all the Peoples of Panipat and that all areresponded to survey, without whom it would be impossible for me tocomplete the project.Last but not the least, my sincere regards to Mrs. Pooja Walia (H.O.D, MBADeptt.) and all faculty members of N.C College Of Engineering Israna(Panipat)for their pain stalking supervision and down right suggestionswhich brought a lot of confidence in me to complete this dissertation report. 2
  3. 3. EXECUTIVE SUMMARYOne of the most competitive market in the world at present is the soft drinkmarket in which crores of rupees on advertisement and other promotionactivities are being spent.It is one of the many sectors ,registering steadygrowth over a hundred years throughout the world .In India the soft drinkindustry is flourishing well with a wide range of brands comprising bothpopular-international ,national & regional branded soft drinks. In presentinvestigation , the impact of globalisation on brand preference of soft drinks& the factor determining the brand preference are studied.Primary data has been collected regarding present study of soft drinksthrough questionnaire in Panipat city. 3
  4. 4. DECLARATIONI, Swati Kathpal, hereby declare that the Dissertation on “Analysis of BrandPreference of Soft Drinks in Global Market”, Panipat assigned to me for therequirement of partial fulfillment of “Master of Business Administeration(MBA)” under Kurukshetra University, Kurukshetra. It is the original workconducted by me and data provided in this study is authentic to the best ofmy knowledge and belief.This report is not submitted to any other institute or university for the awardof any other degree. Swati Kathpal MBA NCCE, Israna. 4
  7. 7. INTRODUCTION TO TOPICThe Indian soft market is very wide & big to control ,as India has all typesof seasons & different locations with different cultures . Soft drink industryis a massive industry with a stiff competition. All people , irrespective oftheir age & earnings , consume soft drinks & are interested in making theirown choice of soft drink brand. In modern business world , due to the development of science &technology , many new brands of products flood the market every year.When the new brands enter into market , some consumer switch over to it.Hence, a study on brand preference becomes necessary. The purchasedecision largely depends upon taste, quality, quantity, price, availability &the like.Due to globalisation , there are many soft drink brands available in themarket such as: INTERNATIONAL BRANDS COCA COLA BRANDS • Coca-cola • Fanta • Sprite • Gold spot • Limca • Maaza • Thumbs up PEPSI BRANDS 7
  8. 8. • Pepsi• Mirinda• Slice• Lehar 7upNATIONAL BRANDS• TORINO• BOVONTALOCAL BRANDS • EYE BRAND • KALIMARK • RUBYIn current scenario, where the competition is tough, consumer chooseaccording to their own will & pleasure & hence there exists a preferenceof brand. The company can achieve the objectives & complete in themarket, only when they satisfy the needs of the customer by taking intoaccount their reasons for brand preference, factors influencing it, level ofsatisfaction, complaints & suggestions. 8
  10. 10. INTRODUCTION OF SOFT DRINKS A detailed analysis of the soft drinks market, providing forecast data to 2007.The report examines key local trends in soft drinks , with an emphasis on providing quality primary research data , obtained directly from major players in the industry . It establishes the market size & structure , provides analysis of current market trends , & profiles the industry’s major players . The Soft Drinks industry & the childhood obesity debate – management briefing : The childhood obesity debate affects & is affected by the Soft Drinks industry . This briefing provides both an account of current publichealth thinking on the problems & causes of rising childhood obesity , along with the views & actions of the soft drinks industry in response to what isundeniably a serious problem in many countries . The report presents a brief overview of what public health community expects from the industry’s of soft drinks . The report examines what the soft drinks industry has done , isdoing & will have to do in future , both at a collective & a company level ,toaddress the problems , engage in the debate & counter negative publicity . In particular , the report examines similarities between the situation the soft drinks industry find itself in & the alcohol companies position with in the debate surrounding the adverse social & health consequences of alcohol misuse , & where best practice in the area of corporate social responsibility(CSR) might be shared between the two sector. As with alcohol companies ,the soft drinks industry has to be & be seen to be part of the solution & not , as it is currently viewed by some , part of the problem . 10
  12. 12. SOFT DRINK INDUSTRYSoft Drink Industry is one of the most familiar Industry , which is affectedby the globalization process to a great extent . Due to the impact ofglobalization , many International Brands have entered into the localmarket . In Tamilnadu also the impact of globalization on different Brandsof Soft Drink is expected to be very high & deserves to be studied . Todaymost of the International Companies are successful are in Soft Drink Market,Because they spend huge amount on Advertisement & provide attractiveoffer to customers. All people, especially Teenagers are stimulated by thesefactors. In this Scenario, Local Brands are not able to spend much amountfor improving their sales to stand the competition. Local Brands areavailable only in petty shops. The People of both semi urban & Urban areasdon’t like the Local Brands of Soft Drinks, because they prefer onlyInternational & National products of Soft Drinks . 12
  13. 13. CLASSIFICATION OF SOFT DRINKS BRANDS AVAILABLE IN MARKETThrough Investigation a study is made about the Brand preference of SoftDrinks in Globalised Market.BRANDS: 1. INTERNATIONAL BRAND: The Investigation has classified the international brand users of soft drinks. Coca-Cola & Pepsi are the important players in MNCs. From survey it is analysed that : 58.06% respondents prefer Pepsi Brand 41..94% respondents prefer Coca-Cola PEPSI BRAND PREFERENCE: Pepsi company manufacture different Brands like: • PEPSI • MIRINDA • SLICE • LEHAR • 7UP The Pepsi Brand meet heavy competition with other Brands. 44.44% respondents prefer Pepsi 25.56% respondents prefer Mirinda 22.22% respondents prefer Slice 13
  14. 14. 7.78% respondents prefer Lehar & 7upCOCA-COLA BRAND PREFERENCE:Coca-cola company manufactures different Brands like:• FANTA• MAAZA• LIMCA• THUMS UP• SPRITE• GOLD SPOT• COCA-COLA27.69% respondents prefer Fanta23.08% respondents prefer Coca-cola18.46% respondents prefer Sprite15.38% respondents prefer Maaza7.70% respondents prefer Limca6.15% respondents prefer Thums up1.54% respondents prefer Gold Spot 14
  15. 15. 2. NATIONAL BRAND PREFERENCE: Through Investigation it is analysed the Brand preference of National Brand consumers of Soft Drinks . National Brand plays an important role in Soft Drinks Markets in India. These brands are also affected due to Globalisation.NATIONAL BRANDS: • Torino • Bovonta Through Survey it is analysed that : 58.33% respondents prefer Torino 41.67% respondents prefer Bovonta After Globalisation nearly 60% of respondents consume Torino among the National Brands. 15
  16. 16. 3. LOCAL BRAND PREFERENCE:The Local Brands of Soft Drinks face stiff competition afterGlobalisation . Because of the Globalisation many International Brandshavecome into Local Market . The Local Brand preference is studied .LOCAL BRANDS: • EYE BRAND • KALI MARK • RUBYThrough survey it is analysed that:57.14% respondents prefer Eye Brand28.57% respondents prefer Kali Mark14.29% respondents prefer Ruby 16
  17. 17. FACTORS INFLUENCING BRANDPREFERENCE:Today, the Business World is characterized by heavy competition . Manyfirms are manufacturing the same product with different Brand names & atthe same time the same firm is producing different Brands of the sameproduct . Brand preference among the consumers may be related to thePersonal attributes like age , educational qualifications , occupational status& monthly income .AGE WISE CLASSIFICATIONDifferent age groups have different Physiological & Psychologicalcharacteristics & have quiet dissimilar social-cultural roles. So, to identifytheir behaviour , the age of the respondents needs due consideration . Theinvestigation have made an attempt to find out relationship between therespondent’s age groups & their Brand preference .To test the Hypothesis that there is no relation between age group &Brands , ANOVA is used. The investigation have concluded that the Brandis not affected by the age group of the consumers .Thus, F-Test shows that there is no association between age of therespondents & their Brand preference .EDUCATION WISE CLASSIFICATIONThe educational profile of the consumer will affect their Brand preference .It is a known fact that, the educated people have more awareness about theBusiness environment & different products & hence they may prefer aBrand . Identifying the educational level of the Soft Drink consumers & theBrand preference is one of the aims of the study . The investigation havemade an attempt to find out the relationship between education of therespondents & their preferred Brands . 17
  18. 18. To test the Hypothesis that there is no association between education &Brand , ANOVA is used .The investigation have concluded that between theBrands there is no difference .Thus F-Test shows that , there is no association between education of therespondents & their Brand preference .OCCUPATION WISE CLASSIFICATIONThe consumer behaviour is often influenced by occupational status of theconsumers . Occupation of consumers influences Brand preference & tendston place consumers in cultural & social background categories at importanttimes during their lives . The investigation have made an attempt to find outrelation between occupation wise classification of the respondents & theirpreferred Brands .To test the Hypothesis that there is no association between Occupation &Brands , ANOVA is used . The investigation have concluded that the Brandpreference does not vary with the occupation of the Soft Drink consumers .Thus the F-Test shows that , there is no association between occupation ofthe respondents & their Brand preference .INCOME WISE CLASSIFICATIONThe income level of the respondents is yet another factor which determinesthe Brand preference . Change in the consumer behaviour differs with thechange in consumer income . The researchers have made an attempt to findout the relation between the monthly income of the respondents & theirpreferred Brands .To test the Hypothesis that there is no association between income level &Brands , ANOVA is used . The investigation have concluded that betweenthe Brands there is difference. The investigators have concluded that theincome level of the consumers affects the Brand.Thus, the F- Test shows that there is association between income level of therespondents & their Brand preference . 18
  20. 20. PEPSIThe company consist of frito-Lay North America , Pepsi co Beverages NorthAmerica , Pepsi co International & Quaker Foods North America . Pepsi cobrands are available in nearly 200 countries & territories & generate sales atthe retail level of about $ 85 billion .Many of Pepsi co’s Brand names are more than 100-years-old , but thecorporation is relatively young . Pepsi co was founded in 1965 through themerger of Pepsi – Cola & Frito-lay . Tropicana was acquired in 1998 &Pepsi co merged with Quaker Oats Company , including Gatorade , in 2001.Pepsi co offers product choices to meet a board variety of needs &preferences from Fun -for -you items to product choices that contribute toheathier lifestyles .Pepsi co’s mission is “To be the world’s premier consumer productscompany focused on convenient foods & Beverages . They seek to producehealthy financial rewards to investors as they provide opportunities forgrowth & enrichment to their employees , their business partners &communities in which they operate . And in everything they strive forhonesty , fairness & integrity .Pepsi Co is founded by Donald M. Kendall , President & Chief ExecutiveOfficer of Pepsi Cola & Herman W.Lay , Chairman & Chief ExecutiveOfficer of Frito-Lay , through the merger of two companies . Pepsi – colawas created in the late 1890s by Caleb Bradham , a New Bern , N,C,Pharmacist . Frito-Lay , Inc. was formed by the 1961 merger of the Frito-Lay Company , founded by Elmer Doolin in 1932, & the H.W. LayCompany , founded by Herman W.Lay , also in 1932 . Herman Lay isChairman of the Board of Directors of the new Company , Donald M .Kendall is President & Chief Executive Officer .The new Company reportssales $510 million & has 19000 employees . 20
  21. 21. MAJOR PRODUCTS OF PEPSIPEPSI-COLA COMPANY : Pepsi-Cola Company (formulated in 1898) • Diet Pepsi (1964) • Mountain Dew (introduced by Tip Corporation in 1948) Frito-Lay , Inc. : Fritos brand corn chips ( created by Elmer Doolin in 1932) • Lay’s brand potato chips ( created by Herman W. Lay in 1938 ) • Cheetos brand cheese flavoured snacks ( 1948 ) • Ruffles brand potato chips ( 1958 ) • Rold Gold brand pretzels ( acquired 1961 ) 21
  22. 22. COCA-COLAThe product that has given the world its best known taste in Atlanta ,Georgia , on May 8 , 1886 . Dr. John Stith Permberton , a local pharmacist ,produced the syrup for Coca-cola R & carried a jug of the new product downthe street to Jacobs’ Pharmacy , where it was sampled , pronounced“excellent” & placed on sale for five cents a glass asa soda fountain drink .Carbonated water was teamed with the new syrup to produce a drink thatwas “ Delicious & Refreshing” a theme that continues to echo todaywherever Coca-cola enjoyed .Thinking that the two Cs look well in advertising , “ Dr. Pemberton’s partner& bookkeeper ‘ Frank M. Robinson , suggested the name & penned the nowfamous trademark “ Coca-cola” in his unique script . The first newspaper adfor Coca-cola soon appeared in The Atlanta Journal , inviting thirsty citizensto try “ the new & popular soda fountain Drink”. Hand – painted oilclothsigns reading “Coca-cola” appeared on store awnings , with the suggestion“Drink” added to inform passersby that new beverage was for sodafoundation refreshment . During the first year , sales averaged a modest ninedrinks per day .Dr. Pemberton never realized the potential of the beverage he created . 22
  23. 23. OBJECTIVE OF STUDY OBJECTIVE OF STUDY# To study the profile of soft drink consumers.# To determine brand preference of soft drinks in theglobal environment.# To find out the factors influencing brand preference. 23
  24. 24. # To analyze the level of satisfaction of soft drinkconsumers. 24
  26. 26. RESEARCH METHODOLOGYResearch Methodology in a way is systematic representation of research orany other problem. It is a written game plan for conducting research. It tendsto describe the step taken by a researcher in studying the research problemalong with a logical background.1. SPECIFY THE RESEARCH OBJECTIVE*To give information to customer.*To study level of satisfaction.*Determine brand preference of soft drinks.2. PREFERENCE THE LIST OF NEEDEDINFORMATIONPersonal factors like age, educational qualification, occupational status &monthly income of consumer influence the brand preference & anassociation exists between the variables.3. DESIGNING THE DATA COLLECTIONPROCESSPANIPAT district is one of main district of Haryana. Using convenientsampling technique from 250 respondents, during the period 2005-2006 ,primary data was collected. All type of customers are included . Datacollected were analysed statistically. 26
  27. 27. 4. SELECTING THE SAMPLE SIZETaking the sample of the study was not easy task. The objective and thelimitation of the study have to be kept in mind before decided about thesample type.In the sample type all level of its consumers have with been covered.Basically the present customers as well as prospective customers werequestioned help of the questionnaires.5. ORGANIZING & CARRYING OUT FIELD WORK After decided upon the sample size & preparing the questionnaire,the fieldwork has to be carried out. In the field work the place had to bechosen where you want to do your study. This project survey work wascarried out in the Panipat city.6. ANALYZING THE COLLECTED DATA After the survey work was over & data had been collected theanalyzing of the data must & its graphically representation was needed. Soafter the data collection process step by step analysis of data was done. Onthe basis of the analysis. 27
  29. 29. ANALYSIS & INTERPRETATION Profile of the RespondentsAGE NO. % EDUCATION NO. % OCCUPATION NO. % INCOME NO. % 0-20 110 44 ELEMENTARY 16 6.4 COOLIE 16 6.4 BELOW6000 122 49.820-30 80 32 HIGHER 105 42 GOVT. EMPLOYEE 18 7.2 6000-9000 64 25.6 SECONDARY 30-40 34 13.6 GRADUATE 81 32.4 PVT. EMLOYEE 40 16 9000-12000 36 14.440 above 26 10.4 POST 26 10.4 BUSINESS MAN 20 8.0 12000-15000 20 8.0 GRADUATE 22 8.8 PROFESSIONAL 12 4.8 ABOVE1500 8 3.2 0 STUDENT 116 46.4 HOUSE- WIFE 18 7.2 TECHNICAL 10TOTAL 250 100 TOTAL 250 100 TOTAL 250 100 TOTAL 250 100 29
  30. 30. Brand Preference of Soft Drinks BRAND NO. OF PERCENTAGE RESPONDENTS LOCAL BRAND 35 14.00NATIONAL BRAND 60 24.00 INTRNATIONAL 155 62.00 BRAND TOTAL 250 100.00 30
  31. 31. LEVEL OF SATISFACTIONTo analyse the level of satisfaction of the consumers towards the SoftDrinks, an Investigation has been made .%age LEVEL OF SATISFACTION40% Highly satisfied with quality of Soft Drinks.28.80% Highly satisfied.28% Moderately satisfied.3.20% Satisfied to lowest extent.40% of the Consumers are very highly satisfied with the quality of SoftDrinks. CORRELATION ANALYSIS 31
  32. 32. The Price & satisfaction level play the most important role in the purchaseof Soft Drinks . The level of Satisfaction of Consumers are measured ashigh, medium & low . The following Hypothesis is framed i.e. there is aclose relationship between Price & Satisfaction level . To test thisHypothesis , the Correlation analysis is used . The result of correlation analysis is r= 0.70 since, there is a fairly goodPositive Correlation , the Hypothesis is accepted & the Price & level ofsatisfaction are closely associated . There exists linearity between the Price& level of satisfaction . 32
  34. 34. RESULTS & DISCUSSIONSThe Soft Drinks Market till early 1990s was in the hands of domestic playerslike Kalimark , Mappillai Vinayagar , Ruby & Eye Brand etc, but with theopening up of Multi National Companies , Pepsi & Coke Brands enter intothe Market . Pepsi scores over Coke . Pepsi entered Indian Market in 1991 &Coke re – entered in 1993 . Pepsi has been targeting its products throughoutthe year * the sales reached Rs. 332.31 crores by 2004 itself . Coke on theother hand struggled initially in establishing itself in the market & salescould only reach Rs. 199 crores by 2005 . Non-alcoholic Soft Drinks beverage Market can be dividedinto Soft Drinks & Fruit Drinks . Soft Drinks can be further divided intocarbonated & Non- carbonated Drinks . Cola , lemon & Oranges arecarbonated drinks , while Mango Drinks come under Non – carbonatedcategory . The Soft Drink Market can also be segmented into Cola products& non-cola products . Cola products alone account for around 60 percent ofthe total Soft Drinks Market . The Brands that fall under this category arePepsi , Coca-Cola & Thums up , Diet Coke & Diet Pepsi . Non-Colasegment based on flavour are orange , cloudy lime , clear lime & Mango. Orange flavour based Soft Drinks constitute around 17percent. The segment is largely dominated by National brands like Fanta ofCoca-Cola & Mirinda Orange of Pepsi co , which collectively from 15percent of the Market & rest of the Market is in the hands of smaller Brandslike Crush , Gold Spot etc. Cloudy lime flavour is largely dominated byLimca of Coca-Cola & Mirinda lemon of Pepsi co. Clear time segment ofthe Market witnessed good growth initially . The Brands available in thissegment are 7up of Pepsi & Sprite of Coca Cola . This segment constitutes 3percent of the total Soft Drink Market . Mango flavour segment constitutes 2percent of the total Soft Drinks Market & it directly competes with mangobased fruit like Frooti . The leading Brands in this segment are Maaza ofCoca Cola & Slice of Pepsi . Soft Drinks are available in glass bottles ,aluminum cans , pet bottles & disposable containers for domesticconsumption. 34
  35. 35. The hot & humid climate of Tamil Nadu is a favourite ground for Soft DrinkMarket in India . The Soft Drink Market for both Coke & Pepsi , because itcontributes upto 8 percent of their total sales on all India level . In 2003 , theSoft Drink industry posted a volume growth of only 6% overall , accordingto the new beverage Digest / Maxwell all- channel data. That growth raterepresents a slight decrease from 2002’s growth rate range of 2% - 4%through out the 1990s. In 2003 , the industry’s total sales were Rs. 63.8billion , & total volume was 10% billion cases . 35
  37. 37. LIMITATIONS OF STUDY It is very small research, which may be insufficient to give the real picture scope of the brand preference in panipat and its catchment area. The research is based on collected data and the researcher is not responsible for any wrong inference drawn due to the incorrect filling of the questionnaire by the respondents. The method of result is also limited to the reliability of method of investigations, measurement and analysis of data. People were not interested in filling questionnaire properly. 37
  39. 39. CONCLUSIONS & SUGGESTIONS• After globalisation most of the respondents (155,82%) like the international brand . 58.06% of the respondents prefer Pepsi brand, Fanta is liked the most . Among the Pepsi brands, Pepsi (44.44%) has more patronage. Among Coca-Cola brand Fanta is liked much.• Nearly 58.33% of the respondents take torino in national level brand. In local level soft drinks (57.14%) Eye has more sales. The F –TEST reveals that there is no association between age, education, occupation & the choice of brands. But there is association between monthly income & brand preference .• 40% of the consumers are quite satisfied with the quality of the soft drink. The correlation analysis reveals that there is a close relationship between price & satisfaction level.• It is suggested that the companies manufacturing soft drinks must manufacture high quality soft drink with Orange taste, in order to compete with multi national companies. 39
  40. 40. BIBLIOGRAPHY 40
  41. 41. BIBLIOGRAPHYwww.brand republic.comINDIAN JOURNAL OF MARKETING (Magazine) 41