Project On “A COMPARITIVE STUDY ON CONSUMER PREFERENCE ON SOFT DRINKS”Submitted by: Pramod Patel 32 Umesh Pathak 33 Sampath CH 36 Ajit Yadav 46 Rahul Singh 42 Class : S.Y.Bms Under the guidance of Priya Mam
ACKNOWLEDGEMENTA word of thanks…………….Before we get into the thick of the things we would like to add a few heartful words for thepeople who gave unending support right from the stage the idea of the research wasconceived. We express our deep sense of gratitude & sincere thanks to those who have helpedus in developing this research work. It is impossible to put out or classify the assistance; it isthe feeling that matters, & not the value.First of all we would like to express our sincere gratitude to our beloved Priya Mam forgiving us an opportunity to do this research & extent his kind co-operation.Deepest appreciation & thanks go to our respective families for their patience &understanding, friends & classmates for their insights comments throughout the research.Above all it is the grace & blessings of God Almighty, which made this, Endeavour asuccess. - Pramod Patel - Umesh Pathak - Sampath CH - Ajit Yadav - Rahul Singh
EXECUTIVE SUMMARYSoft Drinks were common preference among all the individuals, irrespective of their agegroups as it had great brand value and great advertisement.Market Research is based on some underlying parameters like: • Changing consumption pattern • Changing income levels • Advertisements • Taste • Status consciousness • Varying lifestyleThe study starts with determining the major players in the soft drinks, their overallconsumption pattern among the people and ends up with the conclusion as per the state ofmind of the average rational human being.Consumer preferences are changing towards healthier food, and thus such a trend will carryon for some time to come. In the soft drinks market of late, most recent new productslaunched have been focused on the health benefits of the soft drinks, like pomegranate juices,calcium-fortified bottled water and a series of reduced-sugar alternatives, with such featuresnot previously so readily available to or heavily promoted at the target audience. TABLE OF CONTENTS SERIAL NO. TITLE PAGE NO.
1) INTRODUCTION1.1) Industrial profile 011.2) Major players in soft drinks segment 041.3) Study of growth of soft drink market 081.4) Recent issues 092) RESEARCH METHODOLOGY2.1) Purpose of the study 162.2) Objectives of the study 162.3) Scope of the study 162.4) Research Design 172.5) Sampling Technique used 182.6) Selection of Sample Size 182.7) Sources of Data collection 182.8) Statistical Tools Used 183) DATA ANALYSIS AND FINDINGS 194) SUGGESTIONS 405) LIMITATION OF THE STUDY 416) CONCLUSION 427) ANNEXURE 7.1) Questionnaire 438) BIBLIOGRAPHY 44
INTRODUCTION INDUSTRIAL PROFILE
The soft-drink industry comprises companies that manufacture nonalcoholic beverages andcarbonated mineral waters or concentrates and syrups for the manufacture of carbonatedbeverages. Naturally occurring bubbling or sparkling mineral waters have been popular forthousands of years: the ancient Greeks believed that such waters had medicinal properties andbathed in them regularly; the Romans established resorts around mineral springs throughoutEurope. In the 1500s the village of Spa in Belgium became famous for its waters, which bythe early 1600s were sold, in bottles, as far away as London, Eng.Development of the first man-made sparkling or carbonated water is credited to JosephPriestley, the British scientist who discovered oxygen. In 1772 he invented a method of"pushing" carbon dioxide into water by dissolving it under pressure, thus creating fairly long-lasting bubbles. The technique led to development of the soft-drink industry. By thebeginning of the 19th century, carbonated water was being made commercially in France andNorth America; shortly thereafter, flavours (normally fruit concentrates) were added toenliven the taste. In the 1820s, small carbonated bottling operations were established inCanada, producing carbonated drinks in refillable bottles which were merchandised asmedicinal elixirs or tonics. Most soft drinks are still carbonated to give drinks a "tangy bite"and to stimulate the tongue. Furthermore, because scent is an important part of taste, theflavours carried as vapours in the bubbles enhance taste.The principle of "pushing" carbon dioxide is still used, but now the water is first purified in aprocess known as "polishing." Cooled carbon dioxide is then injected at pressures of 275-550kilopascals. Some of the early drinks bottled in Canada were called Birch Beer, Ginger Beer,Sarsaparilla, Sour Lemon, None-Such Soda Water and Cream Soda. The first carbonatedbeverage or "pop" bottles were sealed with corks held tightly in place with a wire binding.Because they had to be stored neck down so that the cork would not dry and allow thecarbonation to leak away, they were manufactured with rounded bottoms. By the mid-1800s,soft drinks sold in Canada were packaged in 8-ounce (227.2 ml) round-bottom bottles forabout 25 cents a dozen, except ginger beer, which was sold in draught form from woodenkegs. Wired cork closures were used until about 1884 with Codds Patented Globe Stoppers(25 types in all). Such closures were replaced by the Hutcheson Spring Stopper. The crowncap was introduced around 1905 and improved versions are still widely used, although theyare gradually being replaced, especially on larger containers, with reclosable screw caps. 1
Other packaging innovations since the mid-1960s include canned carbonated beverages,nonreturnable glass bottles and containers made from rigid plastics. However, an effort isbeing made, often through provincial legislation, to increase the use of returnable glasscontainers.In the industrys early years the number of carbonated-beverage plants increased steadily,most serving small regional markets. In 1929 the industry was made up of 345 productionplants and the value of shipments reached $12.3 million. By 1960 the number of plants hadincreased to 502 and the value of sales to $172.7 million. Subsequently, consolidation began,prompted by improved production, packaging and distribution facilities. By 1973, 337 plantswere in production and the value of shipments was $484 million. In 1985, with sales of about$1.8 billion, the industry had 187 plants in production: Newfoundland had 3; PEI, 1; NovaScotia, 7; New Brunswick, 8; Québec, 66; Ontario, 58; Manitoba, 7; Saskatchewan, 10;Alberta, 13; and BC, 14. Production volume has also increased dramatically: in 1939, soft-drink bottlers produced about 162 million litres of carbonated beverages; by 1967, productionpassed 758 million litres; in 1986, shipments were estimated at over 2.1 billion litres; and in1998 that figure rose to 3.5 billion litres.The industry is regulated by both federal and provincial agencies, 3 of the most importantbeing CONSUMER AND CORPORATE AFFAIRS (responsible for the ConsumerPackaging and Labelling Act), HEALTH CANADA (which administers the Food and DrugsAct) and Environment Canada (which focuses on environmental matters). The industry isrepresented by the Canadian Soft Drink Association in Toronto and by several provincialassociations.The introduction of diet carbonated beverages has changed the industrys profile. Severalyears ago, in response to increasing consumer diet consciousness, the industry introduced thefirst successful sugar-free diet drinks using the artificial sweetener cyclamate. But questionswere raised about the safety of this additive and, based on existing scientific data, HealthCanada banned its use in Canadian commercial FOODS AND BEVERAGES. This decision,estimated to have cost the industry more than $15 million, was a setback to diet-drinkdevelopment. The industry turned to saccharin, but this too was eventually banned. Now, anew sugar-free additive, aspartame, has been approved for use in diet soft drinks, and the 2cyclamate/saccharin situation is not expected to recur because aspartame consists of aminoacids, which occur naturally. Aspartame-sweetened diet drinks have had a dramatic effect on
the Canadian carbonated-beverage industry. Just before the saccharin ban in 1977, diet drinksaccounted for about 10% of the soft-drink market; following the ban the diet share dropped toabout 2%, consisting of beverages partially sweetened with small amounts of sugar. In 1982,the first full year that aspartame was used in Canada, diet drinks increased by 15.2% of totalsoft-drink sales, while the total soft-drink industry grew 8%. In 1987 total soft-drink salesincreased 5.3% over 1986, while diet soft-drink sales increased by 10.7%. This singledevelopment has encouraged strong growth in the industry. MAJOR PLAYERS IN SOFT DRINKS SEGMENT 3COCA 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 beverages inthe 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 as wellas inaccessible parts of the world.Coca cola returned to India in 1993 and over the past ten years has captured the imaginationof the nation, building strong association with cricket, the thriving cinema industry, musicetc. coca cola has been very strongly associated with cricket, sponsoring the world cup in1996.In 2002, coca cola launched the campaign,”Thanda Matlab coca cola”. in 2003,coke wasavailable for just rs,5 crores in the country.FANTA GHOONTH BHAR SHARARAT KAR LEY!!!Fanta entered the Indian market in year 1996 under the coca cola brand .over the years, Fantahas occupied a strong market place and is identified as “the fun catalyst”. Fanta stands for itsvibrant color, tempting taste and tingling bubbles that not just uplifts feelings but also helpsfree spirit thus encouraging one to indulge in the moment.LIMCA 4
“ LIME AND LEMONI!!!Drink that can cast a tangy refreshing spell on anyone, anywhere. Born in 1971, Limca hasbeen 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 continues tobe leading flavoring soft drinks in the country.Dive into the zingy refreshment of limca and walk away a new person.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 uniquely masculineattitude. This brand clearly seeks to separate the man from the boys. 5
SPRITE “SPIRITE BHUJAYE PYAAS BAKI SAB BAKWAAS!!!World wide sprite ranked as no.4 soft drink and is sold in more than 190 countries In India,sprite was launched in year 1999 and today it has grown to be one of the fastest growing softdrinks, leading clear lime category.Today sprite is perceived as a youth icon. With strong appeal to youth sprite has stood for astraight forward and honest attitude. Its clear crisp hingtaste encourages today’s youth to trusttheir instincts, influence them to be true who they are and to obey their thirst.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 become synonymouswith mango.“Taaza Mango, Maaza mango, Botal mei aam, maaza hai naam”.consumers regard maaza aswholesome, 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”.
PEPSI 6 YEH DIL MAANGE MORE!!!Pepsi cola is a carbonated beverage that is produced and manufactured by Pepsi co. It is soldin stores, restaurants and from vending machines. The drink was first made in the 1890’s inNorth Carolina.The brand was trademarked on June 16, 1903.There have been many Pepsi variants producedover 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)
STUDY OF GROWTH OF SOFT DRINK MARKET 7SOFT DRINKS Carbonated drinks are dominated by artificial flavors based on cola, orange and lime withPepsi and coca-cola dominating the market. The entire part of the drink is based on itsartificial 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 as expected.
RECENT ISSUES 81. 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 of aChinese company to date. The proposed purchase was rejected on anti-monopoly grounds,the Chinese commerce ministry announced on its website.Coca-Colas bid in September prompted an outcry by nationalists who urged the governmentto bar foreigners from acquiring one of Chinas most successful homegrown brands. Rivaljuice producers warned that the acquisition would give Coca-Cola too dominant a position inChinas beverage market. A Coca-Cola spokesman in Hong Kong learned of the rejection ofthe sale had no immediate comment. Huiyuans founders and major shareholders already hadendorsed the sale.If Coke were to take over Huiyuan, it will dominate the soft drinks market in China, whichnot only hurts consumers, but also other sector participants. Huiyuan controls more than atenth of the Chinese fruit and vegetable juice market that grew 15% last year to $2 billion.Coca-Cola has a 9.7% share and dominates in diluted juices.2. 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, Slice hadseen powerful consumer momentum post the re-launch of 2008. The new winningformulation has been appreciated by consumers. Aamsutra has driven strong disruption in thejuice and juice drink category. All of this has made Slice the fastest growing mango drinkbrand 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 in thecountry. Tamil Nadu is amongst the top three states and Slice is the market-leader in TamilNadu," he addedPepsi has now opted for a new brand ambassador, Katrina Kaif. 9
The creative thought behind the new communication was to further enhance the Sliceexperience into dimensions of pleasure, sensuality and indulgence. Last years commercialwas about enumerating the principles of Aamsutra or the art of experiencing pure mangopleasure with the new Slice. This year, the commercial portrays the next level to bring alivethe 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.3. Parle Agro launches lemon flavoured drink "LMN"Parle Agro, one of the leading food & beverage companies in India, has launched a new fruit-based lemon drink LMN in the non-carbonated segment. The new brand is a natural lemonjuice drink and the only brand in India with a taste closest to home made, fresh lime water(Nimbu pani). According to the company, LMN will offer consumers a healthy, refreshingdrink with the goodness of vitamin C. Every summer, the Indian beverage market has seencola majors battle it out. This summer, the launch of LMN will see the cola wars taking aback seat and the battle spilling over to the non-cola segment, to be more precise in the nimbupaani category. PepsiCo India last week launched a nimbu pani drink, Nimbooz, under the7Up brand. On the occasion of LMNs launch, Nadia Chauhan, joint managing director and CMO, ParleAgro, said, "Nimbu pani has traditionally been Indias most commonly consumed coldbeverage. In fact the idea of a branded lemon drink is so simple that you would wonder whynobody thought of it earlier. The challenge for us was packaging a natural product whileretaining 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 Rs 5,Rs 10 and Rs 23 respectively. The company aims to touch a turnover of Rs 3000-3500 croreby 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 emerging segment ofconsumers who are looking for a healthy and refreshing beverage in the country. "For the last20 years, Parle Agro has been the market leader in fruit based beverages, we have constantlyworked keeping in mind Indian preferences while formulating products that cater to theIndian palate. It is without any doubt that only an Indian company can understand what realnimbu pani tastes like and what the Indian consumer wants in a packaged offering," Chauhanadded.Further, the company claims that packaged nimbu pani will have tremendous growthpotential, higher than other packaged drinks mainly because of a major shift in consumer 10
behavior. 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, AppyFizz and packaged drinking water, Bailey.4. PepsiCo launches Nimbooz, packaged lemon juice with no fizz andartificial flavoursPepsiCo India has launched its packaged nimbu paani, Nimbooz, under its 7Up brand. Thehome-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 ml returnableglass bottles (RGB), 350 ml PET and 200 ml Tetra attractively priced at Rs 10, Rs 15 and Rs10, 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 refresher perfectlycaptures the mass appeal of this product and will certainly drive consumer connect, stated MsAlpana Titus, Executive VP-Flavours, PepsiCo India.PepsiCo has drawn up an intensive consumer activation campaign to market Nimbooz. The360 degree marketing communication plan will revolve around building awareness throughmulti-city launches and road shows, comprehensive 3D activation, leveraging Out-of-Home(OOH) media, radio, press and outdoors. Aggressive trial generation and sampling initiativeswill also be taken forward across major cities of the country. A special Nimbooz HighwayGadi has been created that will visit the four major highways connecting Delhi to Jaipur,Dehradun, Agra to drive trails and consumer education.
5. Coke launches fruit-flavoured Fanta Apple nationally 11After successfully introducing it in southern markets last year, Coca-Cola India has launchedits fruit-flavoured soft drink Fanta Apple nationally. The product is available in 200 ml and300 ml returnable glass bottles and also in 500 ml PET pack priced at Rs 8, Rs 10 and Rs 22respectively. During the Fanta Apple launch in October 2008, Venkatesh Kini, marketingvice-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 preferred fruitin the country and Fanta Apple has been developed specially for the Indian palate," Kini saidon Monday. According to experts, the nationwide launch of Fanta Apple is a part of thecompanys $250 million business plan for the country.Fanta Apple is the second flavour after Fanta Orange under "Fanta" brand of the company."We have had an excellent response down south with a reused value to the drink and with thenational launch of Fanta Apple, we are stepping stones to extend Coca Cola Indias marketleadership in the fruit-flavoured sparkling drink segment," Kini added. The company has alsoannounced Bollywood actress Genelia DSouza as the new brand ambassador of the Fantabrand.According to reports, the current expected Indian soft drink market is about Rs 6,000 crore, inwhich the company shares about 50% market with its various brands like Coke, 7 Up, Fanta,Sprite and Thums Up.
HEALTH ISSUES CAUSED BY SOFT DRINKS 121) CERTAIN SOFT DRINKS AND CANCER MAY BE RELATEDFrancisco Contraries, M.D., of the Contraries Cancer Clinic in Kiajuana, Mexico said,"Cancer is like a plant cell; it cant live in an oxygen-rich environment. cola drinks make ourbodies poor in oxygen. cancer is the second cause of death in America. The averageAmerican is consuming 800 Or more soft drinks annually. Be more responsible for your ownlife; doctors have no responsibility for anothers health."2) SOFT DRINKS OFFEND THE KIDNEYSA three year study of over 1,000 men with a history of kidney stones showed: "There was aclear-cut difference in the groups experiences, with much less renal colic in the men who hadavoided soft drinks. Of those who continued to use soft drinks, there was also a big differencein outcome depending upon the nature of the soft drink consumed. Soft drinks acidified withphosphoric acid were the worst offenders. Colas of all kinds, of course, are well known fortheir high phosphoric acid content."3) COLA DRINKS PROVIDE ZERO NUTRIENTSAs pointed out by Beatrice Hunter in her book, CONSUMER BEWARE (published in 1971),"Nutritionally, soft drinks are low in value. Their food energy comes solely from refinedsugar. Every element of nutritional importance, except calories, is zero. Soft drinks havemuch in common with hard liquor, claimed the co-discoverer of insulin, Dr. Charles Best.Cirrhosis of the liver has been found among teenagers who drink large quantities of softdrinks, as well as among chronic alcoholics." Can we live without a functioning liver? No.And do doctors have a cure for cirrhosis of the liver? Not really!4) CAFFEINE IS ADDICTIVE; COLAS PROVIDE ITSoft drinks, including the cola and pepper-type drinks that have caffeine in them, are thenumber one beverage of Americans today, with coffee second. Caffeine is a drug and it actsas a stimulant to the central nervous system. "In the amounts presently being consumed, itcan cause insomnia, nervousness, irritability, anxiety and disturbances in the heart rate andrhythm. Cola and pepper-type drinks account for 80-90 percent of the caffeine added to foodstoday. Its long term effects on people are not clearly known." 13
5) BIRTH DEFECTS AREA POSSIBILITYHere is advice on caffeine from the FDA. "In making the public announcement in Septemberof caffeines possible dangers to unborn children, FDA commissioner Dr. Jere E. Goyanurged prudence by pregnant women in the use of caffeine products. Goyans words tomothers-to-be: "So while further evidence is being gathered on the possible relationshipbetween caffeine and birth defects, a prudent and protective mother-to-be will want to putcaffeine on her list of unnecessary substances which she should avoid." The old saying that apregnant woman is "eating for two" has a special meaning in regard to caffeine.The Commissioner also noted that studies to date support the wisdom passed down fromgeneration to generation that caffeine is not for pregnant women or children. "We hope someday to have better scientific assessments," Goyan said, "but for now adhering to the guidanceof our parents seems to be the most prudent course."6) ANOTHER PROBLEM: CARAMEL COLORING"Cola drinks contain caramel coloring which, according to some researchers, has geneticeffects and is a cancer-causing suspect. Polyethylene glycol is used as an ingredientsometimes. Glycol is used in anti-freeze in automobiles and as an oil solvent." Perhaps youhave noticed that pouring cola drinks on your windshield in a snow or ice storm will keep thewindshield from freezing over with ice.7) BUBBLES AND FIZZ - NOT INNOCENT"The bubbles and fizz in soft drinks can potently burn human insides; this is caused by thephosphoric acid and carbon dioxide. The phosphorus in the acid upsets the bodys calcium-phosphorus ratio and dissolves calcium out of the bones. This can eventually result inosteoporosis, a weakening of the skeletal structure, which can make one susceptible to brokenbones. Also, the phosphorus fights with the hydrochloric acid in human stomachs and rendersit ineffective. This promotes indigestion, bloating and gassiness in many individuals. Carbondioxide is a waste product exhaled by humans, but they ingest it when they drink coladrinks."8) METABOLISM CAN BE ALTERED: THAT SPELLS TROUBLEHeavy soft drink consumption can interfere with your bodys metabolization of iron anddiminish nerve-impulse transmission. Sodas may contain - but are not required to disclose -such ingredients as ethyl alcohol, sodium alginate (possibly hazardous for pregnant women),brominated vegetable oil (found harmful to vital organs of animals and considered a healthrisk to heavy consumers of beverages containing it) and caffeine. 14
9) BLOOD PRESSURE ALTERATION: ON THE HIGH SIDEDiet sodas that are low in calories are high in sodium. Six ounces of regular Pepsi cola has 5mg of sodium; Diet Pepsi has 31 mg (But who only drinks 6 oz at a time now? - classic CokeCola has 19 mg sodium. High blood pressure is very common ailment in our society, Iwonder why!And who shouldnt have high sodium in their diets? My personal answer to that question, isthat the condition which causes a person to have high blood pressure should be considered acondition where limiting sodium intake would be helpful. Here are a few of those; certaintumors, kidney disease, adrenal or thyroid or pituitary gland malfunction, even diabetes andarteriosclerosis or hardening of the arteries. Soft drinks should be off limits to persons withthese conditions.10) HEALTH DANGERS OF REUSING PLASTICMany are unaware of poisoning caused by re-using plastic bottles. Some of you may be in thehabit of using and re-using your disposable SOFT DRINK BOTTLES (eg. Pepsi. Coke,Sprite etc), keeping them in your car or at work. Not a good idea. In a nutshell, the plastic(called polyethylene terephthalate or PET) used in these bottles contains a potentiallycarcinogenic element (something called diethylhydroxylamine or DEHA).The bottles are safe for one-time use only; if you must keep them longer, it should be or nomore than a few days, a week max, and keep them away from heat as well. Repeated washingand rinsing can cause the plastic to break down and the carcinogens (cancer- causingchemical agents)can leach into the water that YOU are drinking. Better to invest in waterbottles that are really meant for multiple uses. This is not something we should be scrimpingon. Those of you with family - please advise them, especially for their childrens sake." 15
PURPOSE OF THE STUDYThe main aim of this research study is to analyze the preference of people (of different agegroups) on consumption patterns of Soft Drinks and Consumer Awareness regarding thehazards of soft drinks. OBJECTIVE OF THE STUDY • To study the preferences of the people for soft drinks. • To find whether the consumers are aware regarding the adverse effect of soft drinks concerning their health • To find out the factor(s) that influences the consumer’s consumption of soft drinks. • To test the know-how of the consumers regarding the various existing brands of soft drinks and fruit juices. • To find out how the beverage is positioned in the mind of the consumers. SCOPE OF THE STUDY • This study is confined to Kannur Town region covering areas of Radius of 5 Kms • Seasonal drinks are not considered in the study. • We are considering only canned and bottled drinks • We are not considering water & alcoholic drinks. 16
RESEARCH DESIGN A research design is a framework or blueprint for conducting the marketing researchproject. It specifies the details of the procedures necessary for obtaining the informationneeded to structure and/or solve marketing research problem.On the basis of fundamental objectives of the research we can classify research design intotwo general types: 1) EXPLORATORY RESEARCH 2) 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 varies withincome, age, etc. 17
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 80 has been taken into consideration.SOURCES OF DATA COLLECTION: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 proper way.STATISTICAL TOOLS USEDThe main statistical tools used for the collection and analyses of data in this project are: • Questionnaire • Pie Charts • Bar Diagrams 18
DATA ANALYSIS & FINDINGS
DATA ANALYSIS1) Do you like soft drinks? YES NO 83% 17% 19
2) Frequency of consumption of soft drink in a week? Daily 2-4 Times More than 4 times once in a week 6% 3% 11% 58%
203) In what occasions, do you do you often consume the soft drinks? Feeling thirsty Without any reason Parties Celebrations Hard work 38% 36% 36% 1%
4) What induces you to buy Soft Drinks? 21 Price & Health Status Quantity Drink symbol Taste Variety Advertisement 8% 5% 5% 50% 13% 13%
225) Do advertisements affect your purchases? To Greater To Lesser To Great Extend Neutral To Less Extend Extend Extend 13% 30% 35% 13% 10%
6) Which soft drink do you like more? 23 Coca cola Pepsi Miranda Limca Maaza Other 10% 21% 28% 5% 18% 19%
These are the other soft drink which are preferred by people 24 7-UP Dew Tropicano Slice Frooti Fanta Sprite 5 3 1 2 1 1 27) Do you take the soft drink every time? YES NO 31% 69%
8) Which Flavor do you like most? 25 Mango Orange Lemon Apple Others 24% 31% 21% 10% 14%
9) How do you rate canned juices as compared to fresh juices? 26 Equivalent to Have artificial added healthy with not as healthy fresh juice flavor preservatives 8% 33% 10% 50%
2710) Do you think taking too much soft drink would cause health problems? Yes No No comment 65% 15% 20%
11) Have these drinks caused any health problems for you? 28 Yes No 15 65
12) Are you aware that you are priced more than 10 times than of the real price of the drink? 29 Yes No 50% 50%
3013) Considering the TV ad. Which soft drink ad do you like more? Coca cola Pepsi Mirinda Thumsup Maaza Other specify 13% 23% 20% 29% 5% 11%
3114) After seeing the ad did you like to switch on to that one? Yes No 38% 63%
15) After the plachimada incident have you32 reduced consuming soft drinks? Yes No 49% 51%
3316) Do you think the superstar should stop promoting unhealthy soft drinks? Yes No No comments 46% 23% 31%
17) What all changes do you want the manufacture to make in it to promote sale? 34 Quality Price Advertisement More flavour Other specified 48% 33% 14% 10% 0%
18) In your opinion which all deceases could35 pesticides in the soft drinks cause? the Cancer Paralysation Tooth decaying Pregnancy issues Don’t know 25% 13% 26% 11% 25%
3720) What are the things that govt. need to do, to stop the unhealthy practices carried down by soft drink companies? Increase standards Frequent quality check Control on Advertisement 30% 59% 11%
3821) Do you prefer the usage of plastic bottles of soft drinks? Yes No 64% 36%
SUGGESTIONS In the survey conducted, it was suggested by most of the respondent that govt. 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 govt. 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 10times more than the price of the drink. If the quality is not improved than its better that superstar should stop promoting unhealthy products.
40LIMITATION OF THE STUDY
LIMITATION OF THE STUDY The study was confined to some areas of KANNUR only. Chances of some biasness could not be eliminated. Time was the major constrain. Only limited sample size (80) was possible for such a vast research on such a period of time .i.e. one month Interaction with the respondents was also limited due to their busy work. Due to the changing life style and preferences, it was not necessary that they will consume same soft drink every time. There was a chance that respondent will make assumptions while filling the questionnaire.
CONCLUSIONFollowing are the concluding points taken into consideration after the conductof the research study: An important finding that emerged out of the survey was that 83%of people like to have soft drinks while 17% not like. Through the research it was conveyed that weekly consumption of soft drinks is more than daily consumption Most of the respondents view soft drinks as an aid to put off thirst A majority of the respondents consume soft drinks at the time of parties & celebrations. Most of the respondents consume soft drinks because of its taste. Most of the respondents were of the strong view that advertisements affect their purchases. Considering the TV ad thums up is liked mere but TV ad does not made most of the consumer switch on to that one. About half of the respondent told that taking too much of the soft drink would cause health problems but very few of them caused health problem before. Most of the respondent like Miranda since they like orange flavor. 49% of them reduced consuming soft drinks after plachimada incidents. Most of them concluded while saying that the govt. to do frequent quality check in order to increase sale without causing harm to consumers.
QUESTIONNAIREPERSONAL DETAILSName - …………………………………….Age - 15-25 25-35 35-50Gender - Male FemaleOccupation - Student Housewife Business Service 1) Do you like soft drinks? Yes No 2) Frequency of consumption of soft drink in a week? Daily 2-4times more than 4 times once in a week 3) On what occasions, do you often consume the Soft Drinks? Feeling Thirsty Without any reason (just like that) Parties / Celebrations Others, please specify………………….. 4) What induces you to buy Soft Drinks? Price with quantity Health Drink Status symbol Taste Variety Advertisement 5) Do advertisements affect your purchases? To greater extend To great extend Neutral To less extend To lesser extend 6) Which soft drink do you like more? Cocacola Pepsi Mirinda Limca Maaza Other (specify)…………………………… 7) Do you take the same soft drink every time? Yes No 8) Which flavor do you like most? Mango Orange lemon Apple Other(specify) ________ 9) How do you rate canned juices as compared to fresh juices?
E Equivalent to fresh juices Have artificial added flavor Healthy with preservatives Not as healthy10) Do you think taking too much soft drink would cause health problems? Yes No No comment11) Have these drinks caused any health problem for you before? 43 Yes No12) Are aware that you are being priced more than 10 times than of the real price of the drink? Yes No13) Considering the TV ad.which soft drink ad do you like more? Cocacola Pepsi Mirinda Thumsup Maaza Others specify…………………..14) After seeing the ad did you like to switch on to that one? Yes No15) After the Plachimada incident have you reduced consuming soft drinks? Yes No16) Do you think the super stars should stop promoting unhealthy soft drinks? Yes No No comment17) What all changes do you want the manufacturer to make in it to promote sale? Quality Price Advertisement More Flovour Others (specify)……………………….18) In your openion which all desesase could the pesticides in the soft drink cause? Cancer Paralisation Tooth decaying Pregnancy issues Don’t know Others specify19) Soft drinks such as colas contain significant quantities of Caffeine Nicotine Tannin Rennin Don’t know20) What are the things that govt. need to do, to stop the unhealthy practices carried down by soft drink companies? Increase standards Frequent quality checks Control on advertisement21) Do you prefer the after usage of plastic bottles of soft drinks/ Yes No
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,%20another %20energy%20drink%20for%20the%20Indian%20market&id=598 • http://fnbnews.com/redfr.asp?fn=/other/aboutus.asp&title=About %20Us#Food&beverage • www.google.com • Kothari C R, “Research and Methodology- Methods & Techniques”, New Age International (P) Ltd., 2004 45