1. A COMPARATIVE STUDY ON CONSUMPTION PATTERNS OF SOFT DRINKS AND FRUIT JUICES Submitted In partial fulfillment of the requirements For the Award of the Degree of Bachelors of Business Administration (2006-2009)Guided By: Submitted By:(Ms. Poonam Chawla) Sachin Singal(Lecturer) Roll No.: (0641471706)MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIES (Affiliated from Guru Gobind Singh Indraprastha University) 1
2. CertificateThis is to certify that the project entitled “A Comparative study on consumptionpatterns of Soft Drinks and Fruit Juices” done by Mr. Sachin Singal, Roll no.0641471706 is an authentic work carried out by him at Maharaja Agrasen Institute ofManagement Studies under my guidance. The matter embodied in this project work hasnot been submitted earlier for the award of any degree or diploma to the best of myknowledge and belief.Date:Signature of the guide(Ms. Poonam Chawla)(Lecturer) 2
3. AcknowledgementI would like to thanks Dr. N.K Kakkar (Director) who has been a constant source ofinspiration and my special thanks to Ms. Poonam Chawla (project guide from theinstitute) for her extensive guidance, cooperation and support.Finally, I wish to express my gratitude to all those who have in one way or other helpedme in the successful completion of my project report.SACHIN SINGAL 3
4. EXECUTIVE SUMMARYSoft Drinks were common preference among all the individuals before juices were beingintroduced,With the changing lifestyle and income levels, people are shifting their consumptionpatterns and have therefore become more health conscious thus leading to increase indemand of juices.Market Research is based on some underlying parameters like: • Changing consumption pattern • Health factor • Status consciousness • Varying lifestyleThe basic subject matter of the research, comparative analysis of Soft Drinks and Juicesis focused to study the mind/taste of different age group of people.The study starts with determining the major players in the soft drinks and the juicesmarket, their overall consumption pattern among the people and ends up with theconclusion as per the state of mind of the average rational human being. 4
5. TABLE OF CONTENTS Certificate from the Institute Acknowledgement Executive Summary Chapter-1 Introduction Page No 1.1 Beverage 8 1.2 Overview of the Industry 11 1.3 Recent issues 14 1.4 Study of growth of Soft Drink market 20 1.5 Major players in Soft Drinks segment: Coca-cola 21 Fanta 22 Limca 23 Sprite 24 Thums up 25 Maaza 26 Pepsi 27 1.6 Study of growth of Fruit Drink market 28 1.7 Major players in Fruit Drink segment: Dabur Real 29 Godrej 30 Pepsi Tropicana 31 Leh berry From Ladakh Foods 32 Parle’s Frooti &Appy 33 Chapter-2 Research Methodology 2.1 Methodology 35 5
6. 2.2 Purpose of the study 35 2.3 Objectives of the study 36 2.4 Scope of the study 37 2.5 Research Design 37 2.6 Sampling Technique used 38 2.7 Selection of Sample Size 38 2.8 Sources of Data collection 38 2.9 Statistical Tools Used 39 Chapter-3 Data Analysis and Findings 40 Chapter-4 Conclusion and Suggestions 53 Annexure 57Questionnaire Bibliography 61 6
7. INTRODUCTION 7
8. BEVERAGEWhat is beverage?A drink, or beverage, is a liquid specifically prepared for human consumption. Inaddition to basic needs, beverages form part of the culture of human society.orany liquid suitable for drinking; "may I take your beverage order?"orA liquid to consume, usually excluding water; a drink. This may include tea, coffee,liquor, beer, milk, or soft drinksTypes of beverageThe various types of beverage are: • Alcoholic beverages • Non-Alcohol beverages • Soft drinks • Fruit juice • Hot beverages • Other1. Alcoholic beveragesAn alcoholic beverage is a drink containing ethanol, commonly known as alcohol,although in chemistry the definition of an alcohol includes many other compounds.Alcoholic beverages, such as wine, beer, and liquor have been part of human culture anddevelopment for 8,000 years.2. Non-alcohol beverages 8
9. Non-alcoholic beverages are drinks that would normally contain alcohol, suchas beer and wine but are made with less than .5 percent alcohol by volume. The categoryincludes drinks that have undergone an alcohol removal process such as non-alcoholicbeers and de-alcohol zed wines.Non-alcoholic variants: • Low alcohol beer • Non-alcoholic wine • Sparkling cider3. Soft drinksThe name "soft drink" specifies a lack of alcohol by way of contrast to the term "harddrink" and the term "drink", the latter of which is nominally neutral but often carriesconnotations of alcoholic content. Beverages like colas, sparkling water, icedtea, lemonade, squash, and fruit are among the most common types of soft drinks,while hot chocolate, hot tea, coffee, milk, tap water, alcohol, and milkshakes do not fallinto this classification. Many carbonated soft drinks are optionally available in versionssweetened with sugars or with non-caloric sweeteners.4. Fruit juiceJuice is a liquid naturally contained in fruit or vegetable tissue. Juice is prepared bymechanically squeezing or macerating fresh fruits or vegetables without the applicationof heat or solvents. For example,orange juice is the liquid extract of the fruit ofthe orange tree. Juice may be prepared in the home from fresh fruits and vegetables usingvariety of hand or electric juicers. Many commercial juices are filtered to remove fiber orpulp, but high pulp fresh orange juice is a popular beverage. Juice may be marketedinconcentrate form, sometimes frozen, requiring the user to add water to reconstitute theliquid back to its "original state" 9
10. 5.Hot beveragesHot beverages, including infusions. Sometimes drunk chilled. Coffee-based beverages Cappuccino Coffee Espresso Café au lait Frappé Flavored coffees (mocha etc.) Latte Hot chocolate Hot cider Mulled cider Tea-based beverages Flavored teas (chai etc.) Green tea Pearl milk tea Tea Herbal teas Yerba Mate Roasted grain beverages Sanka6.OtherSome substances may either be called food or drink, and accordingly be eaten witha spoon or drunk, depending on solid ingredients in it and on how thick it is, and onpreference: • Soup • Yogurt 10
11. OVERVIEW OF THE INDUSTRYThe beverage market is worth $55 billion worldwide.The tides are turning for many beverage categories. While the carbonated soft drink andbeer categories are merely treading water with flat sales, the energy drink category issurging ahead like never before. Bottled water, ready-to-drink coffee, ready-to-drink teaand sports drinks follow close behind with substantial sales increase- drinks withoutadded sugar, no beer, along with developments in juice drinks and dairy-based drinks, arehelping to turn around sales in these categories. What follows is a category-by-categorylook 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 healthinnovation, flavor innovation, ingredient innovation and specific age groups. These arethe factors that will shape the future of the beverage industry.“Today’s consumers are concerned with overall health and wellness. As a result, there issignificant impact on food and beverage purchases. Many studies have shown thatconsumers are as concerned with good health as they are about maintaining a high qualityof life.”Do you know what type of new beverage consumers are most likely to try? Do you knowwhere they are most likely to pick those products up? Do you know why?Beverage Industry wanted to know the answers to these questions and to delve deeperinto the ever-increasing number of new product launches in the beverage market. “Thesoft drink industry is training people to seek out new products, even the big guys arecoming out with limited-edition flavors, and consumers are beginning to see that there is 11
12. more flavor activity going on in the category. Whether that really nets anybody any salesgains is another thing, but it is teaching consumers to seek out and try new products. It’salso trying to create some excitement there.”In spite of several challenges and restrictions faced by this industry, it is a ‘roll’ like neverbefore. Customer preferences may have shifted, but they are still always on the look outfor a can of ‘coke’ or a new ‘flavored’ drink to quench their thirst.INDIAN BEVERAGE MARKETThe size of the Indian food processing industry is around $ 65.6 billion, including $20.6billion of value added products. Of this, the health beverage industry is valued at $230million; bread and biscuits at $1.7 billion; chocolates at $73 million and icecreams at $188 million.The size of the semi-processed/ready-to-eat food segment is over $1.1 billion. Largebiscuits & confectionery units, Soya processing units and starch/glucose/sorbitolproducing units have also come up, catering to domestic and international markets.The three largest consumed categories of packaged foods are packed tea, biscuits and softdrinks. The Indian beverage industry faces over supply in segments like coffee and tea.However, more than half of this is available in unpacked or loose form. Indian hotbeverage market is a tea dominant market. Consumers in different parts of the countryhave heterogeneous tastes. Dust tea is popular in southern India, while loose tea inpreferred in western India. The urban-rural split of the tea market was 51:49 in 2000.Coffee is consumed largely in the southern states. The size of the total packaged coffeemarket is 19,600 tones or $87 million. The total soft drink (carbonated beverages andjuices) market is estimated at 284 million crates a year or $1 billion. The market is highlyseasonal in nature with consumption varying from 25 million crates per month duringpeak season to 15 million during off-season. The market is predominantly urban with 25per cent contribution from rural areas. Coca cola and Pepsi dominate the Indian softdrinks market. Mineral water market in India is a 65 million crates ($50 million)industry. On an average, the monthly consumption is estimated at 4.9 million crates,which increases to 5.2 million during peak season. 12
14. RECENT ISSUES1. Xtazy, another energy drink for the Indian marketThe Indian market for energy drinks was estimated recently to have a size of Rs 500crore, about 90 million Euros. The market which is so far dominated by Red Bull, isattracting various new players which want to get a share in a growing business. One of the aspirants is Xtazy, an energy drink from the US. “Xtazy is the forth largestenergy drink inthe US”, says Rohan Malhotra, Managing Director of R. M. Indian LiquorPvt. Ltd., the exclusive importer for Xtazy. Malhotra has launched Xtazy already inEastern India, and was looking now for a distributor in the Delhi area, when FII spoke tohim during IFE fair in Delhi recently. In order to take on Red Bull and get a share of 20% from their business, Malhotrawants to offer better conditions to distributors. “We provide a margin of 6-8% to adistributor, who thus can earn about Rs 6 a can”, Malhotra says. “ This is more than whatRed Bull offers which is only about 2 – 3 Rs per can.” Xtazy is available in cans of 350ml, thus more than the usual 250 ml of other energy drinks, and will be priced with aMRP of Rs 85. Four variants are offered, Cranberry Blast, Sugar Free Passion Fruit-Pineapple, Orange Blast and Lime Blast. Malhotra has planned several marketing measures to promote Xtazy, like PoS actions,coupons and direct marketing in a first round, and night parties in a second round. Inmarketing communication, he is highlighting not only the variants, but also health effectsas the USPs of Xtazy, which are derived from ancient herbs used in the drink like gingkoand guarana. The extract of gingko biloba leaf has been shown to dilate blood vessels andhas the ability to increase peripheral blood circulation, especially to the brain, thecompany writes in a leaflet. Guarana from Brasil would serve to promote weight loss byincreasing the metabolic rate and reducing the appetite. 14
15. Besides the US, Malhotra says, Xtazy would be marketed also in Israel, Ukraine andin Turkey and would soon be launched in China.2. Australia-based "Aromas" launches first coffee store in India.Australia-based "Aromas," one of the leading coffee chain shops, launched its first caféoutlet in India at Hiranandani, Powai, and Mumbai. The company also tied up with IdealHospitality Private Ltd (IHPL), which would own the brand in the country and south-eastAsia.Jayant Mahiskar, chairman and MD, IHPL, said, "Aromas is being launched keeping inmind the true coffee connoisseurs. We aim at targeting the youth and corporate at ouroutlets and Powai with a mix of residential and office complexes was a natural choice.The coffee has been created from selection of the original beans and blended to suit alltastes. Aromas ensures freshness and fullness of flavor." According to the agreement withAromas, IHPL will pay about 1.5% of the gross revenue earned.Further, the company has decided to invest about Rs. 50-75 crore in the next three yearsto expand its footprint with 99 outlets in India.3. China rejects Coke bid to take-over major juice makerChina has rejected Coca-Colas $2.5 billion bid to buy a major Chinese juice maker. Thepurchase of Huiyuan Juice Group Ltd would have been the biggest foreign acquisition ofa Chinese company to date. The proposed purchase was rejected on anti-monopolygrounds, the Chinese commerce ministry announced on its website.Coca-Colas bid in September prompted an outcry by nationalists who urged thegovernment to bar foreigners from acquiring one of Chinas most successful homegrownbrands. Rival juice producers warned that the acquisition would give Coca-Cola toodominant a position in Chinas beverage market. A Coca-Cola spokesman in Hong Kong 15
16. learned of the rejection of the sale had no immediate comment. Huiyuans founders andmajor shareholders already had endorsed the sale.If Coke were to take over Huiyuan, it will dominate the soft drinks market in China,which not only hurts consumers, but also other sector participants. Huiyuan controls morethan a tenth of the Chinese fruit and vegetable juice market that grew 15% last year to $2billion. Coca-Cola has a 9.7% share and dominates in diluted juices.According to analysts Chinas ruling on Coke could cut both ways in that Chinese firmsthat have been making increasingly high profile acquisitions abroad may run into troubleof their own.4. Pepsis Slice kicks off the new season with AamsutraPepsiCos popular mango juice drink brand- Slice kicks off the 2009 season with its newAamsutra concept.According to Homi Battiwalla, business head, juice & juice drinks, PepsiCo India, Slicehad seen powerful consumer momentum post the re-launch of 2008. The new winningformulation has been appreciated by consumers. Aamsutra has driven strong disruption inthe juice and juice drink category. All of this has made Slice the fastest growing mangodrink brand in the country."South India is the lead market for mango drinks in the country. Andhra Pradesh is thebiggest mango market and also the fastest growing market for Slice and mango drinks inthe country. Tamil Nadu is amongst the top three states and Slice is the market-leader inTamil Nadu," he addedPepsi has now opted for a new brand ambassador, Katrina Kaif."The creative thought behind the new communication was to further enhance the Sliceexperience into dimensions of pleasure, sensuality and indulgence. Last yearscommercial was about enumerating the principles of Aamsutra or the art of experiencingpure mango pleasure with the new Slice. This year, the commercial portrays the next 16
17. level to bring alive the mango indulgence, stated Hari Krishnan, Vice President, JWT.The company has now opted for a 360 multimedia campaigns involving digital, print,radio, impact outdoors and sampling in core markets.5. Parle Agro launches lemon flavoured drink "LMN"Parle Agro, one of the leading food & beverage companies in India, has launched a newfruit-based lemon drink LMN in the non-carbonated segment. The new brand is a naturallemon juice drink and the only brand in India with a taste closest to home made, freshlime water (Nimbu pani). According to the company, LMN will offer consumers ahealthy, refreshing drink with the goodness of vitamin C. Every summer, the Indianbeverage market has seen cola majors battle it out. This summer, the launch of LMN willsee the cola wars taking a back seat and the battle spilling over to the non-cola segment,to be more precise in the nimbu paani category. PepsiCo India last week launched animbu pani drink, Nimbooz, under the 7Up brandOn the occasion of LMNs launch, Nadia Chauhan, joint managing director and CMO,Parle Agro, said, "Nimbu pani has traditionally been Indias most commonly consumedcold beverage. In fact the idea of a branded lemon drink is so simple that you wouldwonder why nobody thought of it earlier. The challenge for us was packaging a naturalproduct while retaining its fresh, original taste throughout its shelf life."LMN will be available in 110 ml Tetra, 200 ml Tetra and 500 ml PET packs priced at Rs5, Rs 10 and Rs 23 respectively. The company aims to touch a turnover of Rs 3000-3500crore by 2011.The company will target both (youth and adult) segments of consumers to turn them intobranded consumers of nimbu pani. Besides this LMN will also target an emergingsegment of consumers who are looking for a healthy and refreshing beverage in thecountry. "For the last 20 years, Parle Agro has been the market leader in fruit basedbeverages, we have constantly worked keeping in mind Indian preferences whileformulating products that cater to the Indian palate. It is without any doubt that only anIndian company can understand what real nimbu pani tastes like and what the Indian 17
18. consumer wants in a packaged offering," Chauhan added.Further, the company claims that packaged nimbu pani will have tremendous growthpotential, higher than other packaged drinks mainly because of a major shift in consumerbehavior. Today, the beverage consumer is looking for hygiene, convenience, refreshingtaste, affordability and year-round availability. The name LMN is derived from the SMSversion of the word lemon. Parle Agro also owns other fruit drink brands like Frooti,Appy Fizz and packaged drinking water, Bailey.6. PepsiCo launches Nimbooz, packaged lemon juice with no fizz andartificial flavoursPepsiCo India has launched its packaged nimbu paani, Nimbooz, under its 7Up brand.The home-made nimbu paani or lime juice has been specially created to suit Indian tastes.The lemon juice, no fizz and artificial flavours, is available in trendy, convenient packs.The drink offers great value to consumers in three packaging formats of 200 mlreturnable glass bottles (RGB), 350 ml PET and 200 ml Tetra attractively priced at Rs 10,Rs 15 and Rs 10, respectively.According to Ms Punita Lal, Executive Director- Marketing, PepsiCo India, Nimbooz, isspecially developed to suit Indian tastes and preferences."Nimbooz is an affordable offering for consumers on the go because of its ready-to-drinkformat that is both convenient and hygienic. The proposition of the Indian refresherperfectly captures the mass appeal of this product and will certainly drive consumerconnect, stated Ms Alpana Titus, Executive VP-Flavours, PepsiCo India.PepsiCo has drawn up an intensive consumer activation campaign to market Nimbooz.The 360 degree marketing communication plan will revolve around building awarenessthrough multi-city launches and road shows, comprehensive 3D activation, leveragingOut-of-Home (OOH) media, radio, press and outdoors. Aggressive trial generation and 18
19. sampling initiatives will also be taken forward across major cities of the country. Aspecial Nimbooz Highway Gadi has been created that will visit the four major highwaysconnecting Delhi to Jaipur, Dehradun, Agra to drive trails and consumer education.7. Coke launches fruit-flavoured Fanta Apple nationallyAfter successfully introducing it in southern markets last year, Coca-Cola India haslaunched its fruit-flavoured soft drink Fanta Apple nationally. The product is available in200 ml and 300 ml returnable glass bottles and also in 500 ml PET pack priced at Rs 8,Rs 10 and Rs 22 respectively.During the Fanta Apple launch in October 2008, Venkatesh Kini, marketing vice-president, Coca-Cola India, said that the company had planned to reach about 3.5 lakhcustomers with sample apple flavoured drink to extend its market leadership in the fruitflavoured segment in Andhra Pradesh and Tamil Nadu."As per consumer research, we have found that after orange, apple is the most preferredfruit in the country and Fanta Apple has been developed specially for the Indian palate,"Kini said on Monday. According to experts, the nationwide launch of Fanta Apple is apart of the companys $250 million business plan for the country.Fanta Apple is the second flavour after Fanta Orange under "Fanta" brand of thecompany. "We have had an excellent response down south with a reused value to thedrink and with the national launch of Fanta Apple, we are stepping stones to extend CocaCola Indias market leadership in the fruit-flavoured sparkling drink segment," Kiniadded. The company has also announced Bollywood actress Genelia DSouza as the newbrand ambassador of the Fanta brand.According to reports, the current expected Indian soft drink market is about Rs 6,000crore, in which the company shares about 50% market with its various brands like Coke,7 Up, Fanta, Sprite and Thums Up. 19
20. STUDY OF GROWTH OF SOFT DRINK MARKETSOFT DRINKS Carbonated drinks are dominated by artificial flavors based on cola, orange and limewith Pepsi and coca-cola dominating the market. The entire part of the drink is based onits artificial flavors and sweetening agents as no natural juice is used.MARKET • Cola products account for nearly 61-62% of the total soft drinks market. • Two global majors’ Pepsi and coke dominate the soft drink market. • NCAER survey says 91% of soft drink in the country is in the lower, lower middle and upper middle class people. • The market is worth around Rs.5000 crores with growth rate of around 10-15%. • The annual per capita consumption in India is only about 6 bottles vis- a- Vis 340 bottles in the U.S. • The production as soft drinks has increased from 5670 million bottles in 1998-99 to 6230 million bottles in 1999-2000 industry source. • Growth market this year is expected to be 10-15% in value terms and 20-22% in volume terms. However, the market for carbonated drinks is stagnating and not growing asexpected. 20
21. MAJOR PLAYERS IN SOFT DRINKS SEGMENTCOCA COLA: thanda matlab coca cola!!! Coca cola has truly remarkable heritage. From a humble beginning in 1886 it has nowbecome the flagship brand of largest manufacturer, distributor of non alcoholic beveragesin the world.In India, coca cola was the leading soft drink till 1977 when govt. policies necessitated itsdeparture. Coca cola has made its return to the country in 1993.and made significantinvestment to ensure that the beverage is available to more and more people in remote aswell as inaccessible parts of the world.Coca cola returned to India in 1993 and over the past ten years has captured theimagination of the nation, building strong association with cricket, the thriving cinemaindustry, music etc. coca cola has been very strongly associated with cricket, sponsoringthe world cup in 1996.In 2002, coca cola launched the campaign,”Thanda Matlab coca cola”. in 2003,coke wasavailable for just rs,5 crores in the country. 21
22. FANTA : GHOONTH BHAR SHARARAT KAR LEY!!! Fanta entered the Indian market in year 1996 under the coca cola brand .over theyears, Fanta has occupied a strong market place and is identified as “the fun catalyst”.Fanta stands for its vibrant color, tempting taste and tingling bubbles that not just upliftsfeelings but also helps free spirit thus encouraging one to indulge in the moment. 22
23. LIMCA: LIME AND LEMONI!!!Drink that can cast a tangy refreshing spell on anyone, anywhere. Born in 1971, Limcahas been the original thirst choice, of millions of consumers for over three decades.The brand has been displaying healthy volume growing year on year and limca continuesto be leading flavoring soft drinks in the country.Dive into the zingy refreshment of limca and walk away a new person. 23
24. SPIRITE: SPIRITE BHUJAYE PYAAS BAKI SAB BAKWAAS!!!World wide sprite ranked as no.4 soft drink and is sold in more than 190 countries InIndia, sprite was launched in year 1999 and today it has grown to be one of the fastestgrowing soft drinks, leading clear lime category.Today sprite is perceived as a youth icon. With strong appeal to youth sprite has stood fora straight forward and honest attitude. Its clear crisp hingtaste encourages today’s youthto trust their instincts, influence them to be true who they are and to obey their thirst. 24
25. THUMS UP: TASTE THE THUNDER!!!Strong cola taste, exciting personality.Thums up is a leading carbonated soft drink and most trusted brand in India. Originallyintroduced in 1977, thums up was acquired by the coca cola company in 1993.Thums up, is, known for strong, fizzy taste and its confident, mature and uniquelymasculine attitude. This brand clearly seeks to separate the man from the boys. 25
26. MAAZA: YAARI DOSTI TAAZA MAAZA!!!Maaza was launched in 1976. In 1993, maaza was acquired by coca cola India. Maazacurrently dominates the fruit drink category. Over the years, maaza has becomesynonymous with mango.“Taaza Mango, Maaza mango, Botal mei aam, maaza hai naam”.consumers regard maazaas wholesome, natural, fun loving drink real experience of fruit.The campaign builds on the existing equity of the brand and delivers a relevant emotionalbenefit to the moms rightly captured in tagline, “yaari dosti, and taaza maaza”. 26
27. PEPSI: YEH DIL MAANGE MORE!!!Pepsi cola is a carbonated beverage that is produced and manufactured by Pepsi co. It issold in stores, restaurants and from vending machines. The drink was first made in the1890’s in North Carolina.The brand was trademarked on June 16, 1903.There have been many Pepsi variantsproduced over the years. • Diet Pepsi • Crystal Pepsi • Pepsi twist • Pepsi max • Pepsi samba • Pepsi blue • Pepsi gold • Pepsi holiday spice • Pepsi jazz • Pepsi x(available in Finland & brazil) • Pepsi next(available in Japan & south Korea) 27
28. STUDY OF GROWTH OF FRUIT DRINK MARKETFRUIT JUICESBranded fruit juice market in India holds an immense potential.Usually confused and considered synonymous with non-aerated drinks, fruit pulps, juicesand squash are high sugar beverages, which are centrifuged and filtered to give a semi-clear appearance.In the past, this sector enjoyed an excise exemption, keeping cost at minimal. Howeverthe withdrawal of exemption has inflated costs and can affect growth, with dramaticchange possible on reintroduction of excise exemption.MARKET • The organized fruit beverage market is estimated at Rs.500 crores market. (Nectars, drinks and juices combined). • The market has grown at a 20% to 25% rate. • Of this, more expensive juices segment has grown at rate of 40%this year. It accounted for only 15% of the fruit beverage 3 years back. • In –home consumption of juices has gone up from 30%, three years back to 80%today. • Mango based drinks account for two thirds of fruit drinks industry. 28
29. MAJOR PLAYERS IN THE FRUIT DRINK SEGMENTDABUR REALDabur’s flagship brand real fruit juice is a market leader in packaged fruit juice category.Real was launched in 1996 and the brand has carved a niche for itself by claiming to bethe only fruit juice in packaged form .i.e.100%preservative free.Real, with market share of 57% comes in nine flavors: • Orange • Mango • Pineapple • Mix fruit • Grape • Guava • Litchi • Tomato • CranberryReal Active is 100%fruit juice with no added sugar and is available in following variants: 29
30. • Orange • Apple • Orange- carrotGODREJThe food division of godrej industry produces and market fruit drinks, fruit nectar andsofit soymilk. Godrej’s brand JUMPIN comes in the following flavor: • Mango • Pineapple • Apple • Litchi • OrangeGodrej’s x’s is a range of fruit nectar with more fruits. It’s available in following flavors: • Orange • Apple • Grape 30
31. PEPSI’S TROPICANATropicana brand fruit juice enjoys a market share of 25% and has registered a doubledigit growth and has outpaced the growth of fruit juice market in India. It is available infollowing flavors: • Orange • Apple • Grape • Cranberry 31
32. LEH BERRYIt is a product from Ladakh Foods. Its first fruit juice in Delhi and its selling it in themore affluent parts of town. It enjoys a market share of 4% and is available in a variety offlavors: • Pineapple • Apple • Mixed fruit • Orange • Blackcurrant • Mango • Guava 32
33. PARLE’S FROOTI and APPYFrooti was launched back in 1985 and enjoys market dominance with 85% of marketshare. Parle’s Agro’s APPY, in 1996 had a market share of 5% in the fruit drink segment;in 2003 its new variant-APPY FIZZ was launched. 33
34. RESEARCH METHODOLOGY 34
35. METHODOLOGYEvery project work is based on certain methodology, which is a way to systematicallysolve the problem or attain its objectives. It is a very important guideline and lead tocompletion of any project work through observation, data collection and data analysis.According to Clifford Woody,“Research Methodology comprises of defining & redefining problems, collecting,organizing &evaluating data, making deductions &researching to conclusions.”Accordingly, the methodology used in the project is as follows: -Defining the objectives of the studyFraming of questionnaire keeping objectives in mind (considering the objectives)Feedback from the respondentsAnalysis of feedbackConclusion, findings and suggestions. PURPOSE OF THE STUDYThe main aim of this research study is to analyze the preference of people (of differentage groups) on consumption patterns of Soft Drinks and Fruit Juices. 35
36. OBJECTIVE OF THE STUDY• To study the preferences of the people for soft drinks and fruit juices.• To find out the factor(s) that influences the consumer’s consumption of soft drinks and fruit juices.• To test the know-how of the consumers regarding the various existing brands of soft drinks and fruit juices.• To explore the next best beverage after soft drinks and fruit juices.• To find out how the beverage is positioned in the mind of the consumers. 36
37. SCOPE OF THE STUDY • This study is confined to the North West Delhi region covering areas of Paschim Vihar, Pitam Pura, Rohini area, Punjabi Bagh. • Seasonal drinks are not considered in the study. • We are considering only canned juices. • We are not considering water & alcoholic drinks. RESEARCH DESIGN A research design is a framework or blueprint for conducting the marketingresearch project. It specifies the details of the procedures necessary for obtaining theinformation needed to structure and/or solve marketing research problem.On the basis of fundamental objectives of the research we can classify research designinto two general types:EXPLORATORY RESEARCH 37
38. CONCLUSIVE RESEARCH Exploratory research is one type of research design, which has its primaryobjective the provision of insights into, and comprehension of, the problem situationconfronting the researcher. Conclusive research is designed to assist the decision maker in determiningevaluating and selecting the best course of action to take in a given situation.Conclusive research can be further divided into two types:- • Descriptive • ExperimentalThe research design used in this project is a DESCRIPTIVE DESIGN.Descriptive study as the name implies is designed to describe something-for example thecharacteristics of users of a given product, the degree to which the product use the varieswith income, age, etc. SAMPLING TECHNIQUE USED:This research has used convenience sampling technique.1) Convenience sampling technique: Convenience sampling is used in exploratoryresearch where the researcher is interested in getting an inexpensive approximation of thetruth. As the name implies, the sample is selected because they are convenient. SELECTION OF SAMPLE SIZE:For the study, a sample size of 100 has been taken into consideration. SOURCES OF DATA COLLECTION: 38
39. Research will be based on two sources:1. Primary data2. Secondary data1) PRIMARY DATA:Questionnaire: Primary data was collected by preparing questionnaire and the peoplewere randomly being requested to fill them.2) SECONDARY DATA:Secondary data will consist of different literatures like books which are published,articles, internet and websites.In order to reach relevant conclusion, research work needed to be designed in a properway. STATISTICAL TOOLS USEDThe main statistical tools used for the collection and analyses of data in this project are: • Questionnaire • Pie Charts • Bar Diagrams 39
40. DATA ANALYSIS & FINDINGS 40
41. Q1. What do you prefer to drink? (Tick any 1)Particulars No. of Respondents PercentageSoft Drinks 57 57%Fruit Juices 43 43%Total 100 100% 60% 57% No. of Respondents 50% 43% 40% 30% Series1 20% 10% 0% Soft Drinks Fruit juices ANALYSIS: From the survey it was found that amongst 100 respondents a) 57% of the respondents prefer Soft Drinks to drink. b) 43% of the respondents prefer Fruit Juices to drink. 41
42. Q2. Frequency of consumption of your preferred drink in a week?SOFT DRINKSParticulars No. of Respondents PercentageDaily 28 49%2-6 times 23 40%Above 7 6 11%Total 57 100% No. of Respondents 60% 49% 50% 40% 40% 30% Series1 20% 11.00% 10% 0% Daily 2-6 times Above 7 Weekly Consumption ANALYSIS: From the survey it was found that amongst 57 respondents. a) 49% of the respondents consume Soft Drinks daily. 42 b) 43% of the respondents consume Soft Drinks 2-6 times. c) 11% of the respondents consume Soft Drinks more than 7 times.
43. FRUIT JUICESParticulars No. of Respondents PercentageDaily 10 23%2-6 times 30 70%Above 7 3 7%Total 43 100% 35 30 No. of respondents 30 25 20 Series1 15 10 10 5 3 0 Daily 2-6 times Above 7 weekly consumption ANALYSIS: From the survey it was found that amongst 43 respondents. a) 23% of the respondents consume Fruit Juices daily. b) 70% of the respondents consume Fruit Juices 2-6 times. c) 07% of the respondents consume Fruit Juices more than 7 times. 43
44. Q3. On what occasions, do you often consume the Soft Drinks?Particulars No. of Respondents PercentageFeeling Thirsty 18 18%Parties / Celebrations 45 45%Without any reason (just 25 25%like that)Others 12 12%Total 100 100% Feeling Thirsty 12% 18% Parties / Celebrations 25% Without any reason (just like that) Others 45% ANALYSIS: From the survey it was found that amongst 100 respondents. a) 18% of the respondents consume Soft Drinks when they feel thirsty. b) 45% of the respondents consume Soft Drinks at the time of celebrations. c) 25% of the respondents consume Soft Drinks without any reason. 44 d) 12% of the respondents consume Soft Drinks on other occasions.
45. Q4. On what occasions, do you often consume the Fruit Juices?Particulars No. of Respondents PercentageFeeling Thirsty 17 17%Parties / Celebrations 32 32%Without any reason (just 24 24%like that)Others 27 27%Total 100 100% Feeling Thirsty 17% 27% Parties / Celebrations Without any reason (just like 32% that) 24% Others ANALYSIS: From the survey it was found that amongst 100 respondents. a) 17% of the respondents consume Fruit Juices when they feel thirsty. b) 32% of the respondents consume Fruit Juices at the time of celebrations. c) 24% of the respondents consume45 Fruit Juices without any reason. d) 27% of the respondents consume Fruit Juices on other occasions.
46. Q5. What induces you to buy Soft Drinks?Particulars No. of Respondents PercentagePrice with quantity 30 30%Health Drink 4 4%Status symbol 8 8%Taste 32 32%Variety 26 26%Total 100 100% 35 32 30 No. of respondents 30 26 25 20 Series1 15 10 8 4 5 0 Price with Health Status Taste Variety quantity Drink symbol Factors ANALYSIS: From the survey it was found that amongst 100 respondents. a) 30% of the respondents consume soft drinks because of its price. b) 04% of the respondents consume soft drinks because it is a health drink. c) 46 08% of the respondents consume soft drinks because it is a status symbol. d) 32% of the respondents consume soft drinks because of its taste. e) 26% of the respondents consume soft drinks because of its variety.
47. Q6. What induces you to buy Fruit Juices?Particulars No. of Respondents PercentagePrice with quantity 13 13%Health Drink 40 40%Status symbol 15 15%Taste 22 22%Variety 10 10%Total 100 100% 45 40 40 No. of respondents 35 30 25 22 Series1 20 15 15 13 10 10 5 0 Price with Health Status Taste Variety quantity Drink symbol Factors ANALYSIS: From the survey it was found that amongst 100 respondents. a) 13% of the respondents consume fruit juices because of its price. b) 40% of the respondents consume fruit juices because it is a health drink. c) 47 15% of the respondents consume fruit juices because it is a status symbol. d) 22% of the respondents consume fruit juices because of its taste. e) 10% of the respondents consume fruit juices because of its variety.
48. Q7. If not a Soft Drink or a Fruit juice, which other beverage (other than water) tops yourmind?Particulars No. of Respondents PercentageCoffee 30 30%Tea 25 25%Shakes(Milk/Ice cream/Fruit) 8 8%Lassi 12 12%Sharbat 25 25%Total 100 100% Coffee 25% 30% Tea Shakes(Milk/Ice- cream/Fruit) 12% Lassi 8.00% 25% Sharbat ANALYSIS: From the survey it was found that amongst 100 respondents. a) 30% of the respondents prefer coffee. b) 25% of the respondents prefer tea. c) 48 08% of the respondents prefer Shakes. d) 12% of the respondents prefer Lassi. e) 25% of the respondents prefer Sharbat.
49. Q8. How do you rate canned juices as compared to fresh juices?Particulars No. of Respondents PercentageEquivalent to fresh juices 24 24%Have artificial added 36 36%flavorHealthy with preservatives 40 40%Total 100 100% 24% Equivalent to fresh 40% juices Have artificial added flavor Healthy with preservatives 36% ANALYSIS: From the survey it was found that amongst 100 respondents. a) 24% of the respondents think canned juices are Equivalent to fresh juices. b) 36% of the respondents think canned juices Have artificial added flavor. 49 c) 40% of the respondents think canned juices are Healthy but have preservatives.
50. Q9. How do you view Soft Drinks?Particulars No. of Respondents PercentageAs a health drink 4 4%As a status symbol 8 8%As an aid to put off thirst 55 55%Any other 33 33%Total 100 100% 60 55 No. of respondents 50 40 33 30 Series1 20 8 10 4 0 As a As a As an aid Any health status to put off other drink symbol thirst ANALYSIS: From the survey it was found that amongst 100 respondents. a) 04% of the respondents view Soft Drinks as a health drink. b) 08% of the respondents view Soft Drinks as a status symbol. 50 c) 55% of the respondents view Soft Drinks as an aid to put off thirst.
51. Q10. How do you view Fruit Juices?Particulars No. of Respondents PercentageAs a health drink 40 40%As a status symbol 15 15%As an aid to put off thirst 32 32%Any other 13 13%Total 100 100% No. of respondents 45 40 40 35 32 30 25 Series1 20 15 15 13 10 5 0 As a As a As an aid Any health status to put off other drink symbol thirst ANALYSIS: From the survey it was found that amongst 100 respondents. a) 40% of the respondents view Fruit Juices as a health drink. b) 15% of the respondents view Fruit Juices as a status symbol. c) 32% of the respondents view Fruit Juices as an aid to put off thirst. 51
52. Q11. Do advertisements affect your purchases?Particulars No. of Respondents PercentageYes 77 77%No 23 23%Total 100 100% 23% Yes No 77% ANALYSIS: From the survey it was found that amongst 100 respondents. a) 77% of the respondents think that advertisements affect their purchases. b) 23% of the respondents think that advertisements do not affect their purchases. 52
53. CONCLUSION, SUGGESTIONS AND LIMITATIONS 53
54. CONCLUSIONFollowing are the concluding points taken into consideration after the conduct of theresearch study:• An important finding that emerged out of the survey was that 57%of people like to have soft drinks while 43% go for juices.• Through the research it was conveyed that weekly consumption of soft drinks is higher than the weekly consumption of juices.• A majority of the respondents consume soft drinks and fruit juices at the time of parties & celebrations.• Most of the respondents consume soft drinks because of its taste and price.• Most of the respondents 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 respondents consider it healthy.• Most of the respondents view soft drinks as an aid to put off thirst and fruit juice as a health drink.• Most of the respondents (77%) were of the strong view that advertisements affect their purchases and the rest (23%) were not at all affected by the advertisements. 54
55. SUGGESTIONS• With the changing lifestyle, people have started becoming more health conscious. Therefore, the fruit juice company’s should use appropriate marketing techniques thereby reducing the demand for soft drink in the future.• The survey shows that parties/celebrations are the places where these drinks are consumed mostly. The company’s must try to increase the sales by creating and focusing on more utilities so that their product is used more frequently.• As it is seen that people consider canned juices to be healthy with preservatives. This shows that awareness level of the people is low and needs to be corrected. Therefore, various methods like campaigns by government, help by media, etc can be taken to change this. 55
56. LIMITATIONS• The study was confined to some areas of New Delhi only.• The study does not take into account the sales affected of the soft drink segment due to the entry of juices.• Retailers view and the companies view to the questionnaire were not available.• Time and cost constraints were also there.• Chances of some biasness could not be eliminated.• A Samples size of 100 has been use due to time limitations. 56
57. ANNEXURE 57
58. QUESTIONNAIREPERSONAL DETAILS Name - _________________ Age - 15-25 25-35 35-50 Gender - Male Female Occupation - Student Housewife Business Service Hello! I am Sachin, a student of management school and am required to submit project on a comparative study of consumption of Soft Drinks and Fruit Juices. For the purpose, I am conducting the survey. Will you please take a few minutes to answer some questions? I assure you that your answers will be kept completely confidential. Q1. What do you prefer to drink? (Tick any 1) a) Soft Drinks b) Fruit Juices Q2. Frequency of consumption of your preferred drink in a week? a) Soft Drinks, Daily b) Fruit Juices, Daily 2-6 times 2-6 times Above 7 Above 7 Q3. On what occasions, do you often consume the Soft Drinks? a) Feeling Thirsty b) Parties / Celebrations c) Without any reason (just like that) d) Others, please specify ________ Q4. On what occasions, do you often consume the Fruit juices? a) Feeling Thirsty 58
59. b) Parties / Celebrationsc) Without any reason (just like that)d) Others, please specify ________Q5. What induces you to buy Soft Drinks?a) Price with quantity ______b) Health Drink ______c) Status symbol ______d) Taste ______e) Variety ______Q6. What induces you to buy Fruit Juices?a) Price with quantity ______b) Health Drink ______c) Status symbol ______d) Taste ______e) Variety ______Q7. If not a Soft Drink or a Fruit juice, which other beverage (other than water) tops yourmind?a) Coffeeb) Teac) Shakes (Milk/Ice-cream/Fruit)d) Lassie) SharbatQ8. How do you rate canned juices as compared to fresh juices?a) Equivalent to fresh juicesb) Have artificial added flavorc) Healthy with preservatives 59
60. Q9. How do you view Soft Drinks?a) As a health drinkb) As a status symbolc) As an aid to put off thirstd) Any other, please specify ________Q10. How do you view Fruit Juices?a) As a health drinkb) As a status symbolc) As an aid to put off thirstd) Any other, please specify ________Q11. Do advertisements affect your purchases?a) Yesb) NoQ12. Name any three brands of Fruit juices & Soft Drinks that are there in your mind atpresent?Soft Drinks Fruit Juices ______ ______ ______ ______ ______ ______ 60
61. BIBLIOGRAPHY• http://en.wikipedia.org/wiki/Beverage• www.foodindustryindia.com• http://fnbnews.com/article/detarchive.asp?articleid=25105§ionid=3• http://fnbnews.com/article/detarchive.asp?articleid=24983§ionid=3• http://fnbnews.com/article/detarchive.asp?articleid=24965§ionid=3• http://fnbnews.com/article/detarchive.asp?articleid=24849§ionid=3• http://fnbnews.com/article/detarchive.asp?articleid=25039§ionid=3• http://www.foodindustryindia.com/newfood/detailnews.jsp?n=Xtazy,%20anot her%20energy%20drink%20for%20the%20Indian%20market&id=598• http://fnbnews.com/redfr.asp?fn=/other/aboutus.asp&title=About%20Us#Foo d&beverage• www.google.com• Kothari C R, “Research and Methodology- Methods & Techniques”, New Age International (P) Ltd., 2004 61