A Project Report on Contemporary Issue

Titled

“A Comparative Study On Consumption

of

Soft Drink and Fruit Juices “

International School Of Informatics &

Management (2010-2012)

Submitted to : Submitted by:

Mrs. Geeti Sharma Ar pit sh u kla

Lecturer, IIIM PGDM/10/40

PGDM SEM I,

A special THANKS to my senior (MAM):-

VAISHALI WADHWANI, IIM, JAIPUR

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Acknowledgement

Perseverance, inspiration and motivation have always played a key role in the success of any venture. A successful and satisfactory completion of any project is the outcome of the invaluable aggregate contribution of different personal fully in radical direction, explicitly or implicitly.

Whereas vast, varied and valuable reading efforts leads to substantial acquisition of knowledge via books and allied information sources, true expertise excludes from collateral practical works and experiences.

Words have never seemed as inadequate as now, when We are endeavoring to express our heartfelt gratitude at the culmination of the project, to all those made it possible. Even the best effort is waste without proper guidance and advice. We highly solicit to FACULTY NAME for launching us into this foray. We are indebted to Sir for giving time-to-time suggestion and his valuable guidance, co-operation, inspiration and keen supervision to project.

Last but not the least; We are grateful to god, our parents, elders and friends for encouraging us to take up this challenging task.

Arpit Shukla

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EXECUTIVE SUMMARY

Soft Drinks were common preference among all the individuals before juices were being introduced, With the changing lifestyle and income levels, people are shifting their consumption patterns and have therefore become more health conscious thus leading to increase in demand of juices. Market Research is based on some underlying parameters like:

Changing consumption pattern Health factor Status consciousness Varying lifestyle

The basic subject matter of the research, comparative analysis of Soft Drinks and Juices is 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 juices market, their overall consumption pattern among the people and ends up with the conclusion as per the state of mind of the average rational human being.

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TABLE CONTENT

Page no.

1. OBJECTIVE 5

2. About fruit juice market 6

3. About carbonated drink 9

4. Literature review 12

5. Beverage 14

6. Overview of industry 17

7. Indian beverage market 19

8. Recent issue 20

9. Study of growth 28

10. Major player in soft drink 29

11. study of growth of fruit drink market 32

12. Major player in fruit drink 33

13. Research methodology 36

14. Data analysis 41

15. Conclusion 53

16. Suggestion 55

17. Limitation 56

18. Bibliography 57

19. Annexure 58

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OBJECTIVE

1) To find demographic variations among juices & health drinks consumers.

2) To find relation between consumption pattern and

i) income of consumers

ii) suggestion given to others

3) To find various factors affecting there choices.

4) To find brands preferred by the consumer.

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About Fruit juices market

Different companies are now looking at different pack sizes and price points. New entrants are also expected to join the fray in the Rs 500-crore (Rs 5 billion) organized fruit beverage market (nectars, drinks and juices combined).

What's making all these players gung-ho about fruit beverages? For one, the fruit drink market (juice accounts for 30 per cent, nectar is 10 per cent and fruit drinks are 60 per cent of the market today) has grown at a 20 per cent to 25 per cent rate.

Of this, the more expensive juices segment has grown at a 40 per cent rate this year. It accounted for only 15 per cent of the fruit beverage market three years back. Consumer habits have changed drastically. They are looking for healthier options and nutritional value in the food they buy today.

But it's not just the health fad that has led to the growth spurt. Cola sales fell dramatically after the pesticide controversy and this seems to have benefited the fruit beverage industry. Soft carbonated drinks (colas) grew 17 per cent in 2002 but fell 15 per cent in 2003.

What also made the market work is the fact that tetrapaks offered a solution to provide fruit juice practically fresh and preservative free.

The proliferation of supermarkets and malls in metros and mini-metros (key markets for this category), added to the growth story as well. And then there is the income factor.

The other factors that have helped are the different pack sizes that players started offering in the last year. Tropicana launched a 500 ml pack at Rs 25 compared to a one litre pack for Rs 76.

These new price points and packs are aimed at getting more consumers to try the new product, and in turn increase the consumer base.

All of this has resulted in increased in-home consumption of juices, which has gone up from 30 per cent three years back to almost 80 per cent today. Consumers perceive this as the next best thing to having a fresh fruit.

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Convenience is no longer the selling point, the natural taste & essence matters. The Companies have big plans for the future. Dabur, which currently has a 55 per cent market share, wants to launch more Indian fruits and even fruit and vegetable juice combinations in the near future. It is also trying to bring down prices.

So, it has launched Coolers 15 per cent cheaper than Real because it has a lower pulp content. And by setting up a food processing plant in Siliguri, West Bengal, Dabur will source fruits directly from farmers and cut down raw material or pulp costs, which comprise almost 30 per cent of the finished product.

Similarly, other players like Godrej are also looking at launching new variants including combinations by year-end. Parle Agro, which has been experimenting with sugarcane juice for some time now, has launched mango Fruity in 65 ml packs in Pune, Gurgaon and Mumbai for Rs 5. A year back, it extended the Fruity brand into pineapple and orange variants as well as launching it in 250 ml and one-litre PET bottles.

Pepsi's Tropicana has tied up with equestrian sports and polo clubs to build bridges with the well-heeled young adults. Its recent sampling exercise included an interactive quiz reaching out to 200,000 students from 150 schools in Delhi.

Health drinks -

According to the research report, the Indian health drinks market was estimated at around Rs. 216 Billion in 2008 and is forecast to grow at a CAGR of around 15% during 2009-2012. The report covers various factors driving the growth of health drinks market in India.

India has witnessed radical shift in consumption of health drinks over the recent past. Fast expanding middle class population that is currently around 350 Million, increased urbanization and rising disposable income are some of the major reasons contributing to this change. Besides this, growing health

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consciousness among India’s young population has brought about a revolution in the Indian health drinks market. It has been seen that cola sales have fallen dramatically due to rising health concerns and this seems to have benefited the country’s non-carbonated drinks market such as energy drinks and juices.

There is a greater awareness of the ‘functional’ benefits of health beverages and a greater willingness to pay a premium for such beverages. With these strong drivers of growth, it is not surprising that the beverage industry in India has begun responding with products that are marketed clearly on a health and wellness platform.

The segment level analysis shows that the highest growth will be seen in the fruit juice market, which is forecast to growth at a CAGR of around 30% in value terms during 2010-2012. It will be closely followed by the energy drinks segment at a CAGR of around 29% during the same period.

There is a greater awareness of the ‘functional’ benefits of health beverages and a greater willingness to pay a premium for such beverages. With these strong drivers of growth, it is not surprising that the beverage industry in India has begun responding with products that are marketed clearly on a health and wellness platform.

Why market demand of energy drinks & fruit juices are growing in Indian market

In the recent years, India has been observing a sweeping shift in consumption of non-alcoholic drinks, like energy drinks and juices. The growing middle class that currently is around 350 million, rising urbanization and increase in purchasing parity are some of the primary reasons, prompting this change. Indian non-alcoholic drinks market which in 2008 stood around Rs 216 billion is projected to grow almost by 15% during 2010-2012.

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Furthermore, rising health consciousness among the masses has increased the popularity of these non-alcoholic drinks. And as expected, cola sales have been plummeting due to rising health issues and this seems to have boosted the growth of country's non-carbonated drinks like energy drinks and juices.

As per the segment level analysis, fruit juice market would witness the highest growth around 30 percent in value terms in 2010-2012, followed by energy drinks segment. In these changing times, a greater awareness towards health beverages and energy drinks is being witnessed and the best part being people don't mind coughing up a little more for them. Indian companies are undoubtedly cashing in on the health and wellness understanding/awareness among the masses by launching products that meet their requirements.

About Carbonated Drinks

Juices are often consumed for their perceived health benefits. For example, orange juice is rich in vitamin C, folic acid, potassium, is an excellent source of bioavailable antioxidant photochemical and significantly improves blood lipid profiles in people affected with hypercholesterolemia. Prune juice is associated with a digestive health benefit. Cranberry juice has long been known to help prevent or even treat bladder infections, and it is now known that a substance in cranberries prevents bacteria from binding to the bladder.

The high sugar content of fruit juices is often not realized—many fruit juices have a higher sugar (fructose) content than sweetened soft drinks; e.g., typical grape juice has 50% more sugar than Coca Cola.

Fruit juice consumption overall in Europe, Australia, New Zealand and the USA has increased in recent years, probably due to public perception of juices as a healthy natural source of nutrients and increased public interest in health issues. Indeed, fruit juice intake has been consistently associated with reduced risk of many cancer types, might be protective against stroke and delay the onset of Alzheimer's disease.

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The perception of fruit juice as equal in health benefit to fresh fruit has been questioned, mainly because it lacks fiber and has often been highly processed. High-fructose corn syrup, an ingredient of many juice cocktails, has been linked to the increased incidence of type II diabetes. High consumption of juice is also linked to weight gain, but fruit juice consumption in moderate amounts can help children and adults meet daily recommendations for fruit consumption, nutrient intake and calories.

A number of packaged juices contain added sugars and sweeteners. These make them more liked by children but the extra sugars can contribute to childhood obesity and infantile diabetes. Diabetes is a very common illness in India. Once a child develops a taste for extra-sweet packaged juices, it is hard for them to accept less sweet but natural juices. Most juices contain Vitamin C, and some contain added fortifiers like calcium, Vitamin A and Vitamin C and this can beneficial for children. However, juice with fortified calcium is not a replacement for milk. Milk contains a number of other ingredients that are good for children. Fruit juices must not be used as a substitute for milk.

Packaged fruit juices contain none of the natural fibers that are in fruit, unless they contain pulp also. Fiber is an important part of children's diets as it improves digestion. The act of washing, peeling, biting and chewing fruit teaches our children important physical skills. They young fingers learn how to be flexible and their mouth learns how to mash food before swallowing it. By taking longer to consume the same amount of calories, it reduces overconsumption and keeps them healthy. Behaviorally, eating a whole fruit helps children combat the need for "instant gratification". Instant gratification is the need to get satisfaction immediately and always. While poking open a fruit juice container seems efficient, we are teaching our kids that happiness comes out of a package.

Pediatricians recommend that juices must not be introduced into infant diets till they are 6 months old. Packaged fruit juices, if bought correctly, do help our children's hydration as they contain a lot of water.

These are packaged products that have a fruit sounding name or a fruity logo, but seldom contain 100% fruit juice. They are almost always made with artificial flavors, added synthetic sugars. They may also be aerated/carbonated

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Parents often think that packaged fruit juices and drinks have the same benefits as fruits and feed them to their children. Often there is also overconsumption as no limit is set on what is perceived to be a healthy source of nutrition. Unfortunately, the truth may be far from it.

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LITERATURE REVIEW

1) European Study Published By International Journal 2006

This past week, results of a European study, published in the International Journal of Food Science and Nutrition in 2006, made the news. This study was actually a comprehensive review of the literature on fruit and vegetable juices. This study does raise an interesting point. Here’s the crux of the study, according to the authors: “When considering cancer and coronary heart disease prevention, there is no evidence that pure fruit and vegetable juices are less beneficial than whole fruit and vegetables.”

Dietitians may find this study to be a double-edged sword. On the one hand, it’s good news. For people who dislike eating fruits or vegetables, downing a glass of grape juice or carrot juice is an easy way to get the vitamins, minerals, and antioxidants they need to help prevent heart disease and cancer. But, on the other hand, the issue of calories and carbohydrate surfaces when it comes to folks who are trying to watch their weight and/or who have diabetes.

2) Carbonated Drinks By Cadrik Manslon 2005

If one ever met with a dietitian for your diabetes, chances are he has been advised to limit fruit juices. Why? Well, a 4-ounce glass of orange juice, for example, contains about 60 calories and 15 grams of carbohydrate. In the carbohydrate counting method of diabetes meal planning, this is considered “one carb choice.” Most people don’t care, though, and end up drinking more like 8 or 12 ounces, since calories add up, and the additional carbohydrate is reflected in higher blood glucose readings shortly thereafter. And to make matters worse, some juice drinks have additional sugar added to them, often in the form of high fructose corn syrup (HFCS). This

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sweetener has its own set of problems, including possible links to obesity and high triglyceride levels. Cranberry juice cocktail and many fruit juice “blends” are examples of sweetened juices. Instead, using juice to treat hypoglycemia and, instead, eating fresh fruit. Fruit is higher in fiber and takes longer to eat, so it’s more filling and satisfying. Plus, it’s easier to control portions with fruit than it is with juice. Tomato or vegetable juice have fewer calories and less carbohydrate than fruit juice.

Now comes along this review of literature with its conclusions that juices are just as good as fruit. On the one hand, people can fight heart disease, cancer, and possibly even Alzheimer disease by drinking juice. Fresh (or frozen) fruits and vegetables offer something that juices don’t, and that’s the satisfaction of eating a tart Macintosh apple on a crisp fall day; a sweet, juicy peach in the heat of the summer; or a bright orange, crunchy carrot straight from the garden.

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BEVERAGE

What 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. Or any liquid suitable for drinking; "may I take your beverage order?"or A liquid to consume, usually excluding water; a drink. This may include tea, coffee, liquor, beer, milk, or soft drinks.

Types of beverage

The various types of beverage are :

Alcoholic beverages Non-Alcohol beverages Soft drinks Fruit juice Hot beverages Other

1. Alcoholic beverages

An 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 and development for 8,000 years.

2. Non-alcohol beverages

Non-alcoholic beverages are drinks that would normally contain alcohol, such as beer and wine but are made with less than .5 percent alcohol by volume.

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The category includes drinks that have undergone an alcohol removal process such as non-alcoholic beers and de-alcohol zed wines.

Non-alcoholic variants:

Low alcohol beer Non-alcoholic wine Sparkling cider

3. Soft drinks

The name "soft drink" specifies a lack of alcohol by way of contrast to the term "hard drink" and the term "drink", the latter of which is nominally neutral but often carries connotations of alcoholic content. Beverages like colas, sparkling water, iced tea, 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 fall into this classification. Many carbonated soft drinks are optionally available in versions sweetened with sugars or with non-caloric sweeteners.

4. Fruit juice

Juice is a liquid naturally contained in fruit or vegetable tissue. Juice is prepared by mechanically squeezing or macerating fresh fruits or vegetables without the application of heat or solvents. For example, orange juice is the liquid extract of the fruit of the orange tree. Juice may be prepared in the home from fresh fruits and vegetables using variety of hand or electric juicers. Many commercial juices are filtered to remove fibre or pulp, but high pulp fresh orange juice is a popular beverage. Juice may be marketed

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in concentrate form, sometimes frozen, requiring the user to add water to reconstitute the

liquid back to its "original state"

5.Hot beverages

Hot beverages, including infusions. Sometimes drunk chilled.

Coffee-based beverages Cappuccino Coffee Espresso Café au lait Frappé Flavored coffees (mocha etc.) Fatte Hot chocolate Hot cider Mulled cider Tea-based beverages Flavoured teas (chai etc.) Green tea Pearl milk tea Tea Herbal teas Yerba Mate Roasted grain beverages Sanka

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6.Other

Some substances may either be called food or drink, and accordingly be eaten with a spoon or drunk, depending on solid ingredients in it and on how thick it is, and on

Preference:

Soup Yogurt

OVERVIEW OF THE INDUSTRY

The beverage market is worth $55 billion worldwide.

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

In order to be successful in the marketplace, one has to think in terms of health innovation, flavour innovation, ingredient innovation and specific age groups. These are the factors that will shape the future of the beverage industry.

“Today’s consumers are concerned with overall health and wellness. As a result, there is significant impact on food and beverage

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purchases. Many studies have shown that consumers are as concerned with good health as they are about maintaining a high quality of life.”

Do you know what type of new beverage consumers are most likely to try? Do you know where 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 deeper into the ever-increasing number of new product launches in the beverage market. “The soft drink industry is training people to seek out new products, even the big guys are coming out with limited-edition flavours, and consumers are beginning to see that there is more flavour activity going on in the category. Whether that really nets anybody any sales gains is another thing, but it is teaching consumers to seek out and try new products. It’s also trying to create some excitement there.”

In spite of several challenges and restrictions faced by this industry, it is a ‘roll’ like never before. Customer preferences may have shifted, but they are still always on the lookout for a can of ‘coke’ or a new ‘flavoured’ drink to quench their thirst.

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INDIAN BEVERAGE MARKET

The size of the Indian food processing industry is around $ 65.6 billion, including $20.6 billion of value added products. Of this, the health beverage industry is valued at $230 million; bread and biscuits at $1.7 billion; chocolates at $73 million and ice creams at $188 million.

The size of the semi-processed/ready-to-eat food segment is over $1.1 billion. Large biscuits & confectionery units, Soya processing units and starch/glucose/orbital producing units have also come up, catering to domestic and international markets.

The three largest consumed categories of packaged foods are packed tea, biscuits and soft drinks. 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 hot beverage market is a tea dominant market. Consumers in different parts of the country have heterogeneous tastes. Dust tea is popular in southern India, while loose tea in preferred 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 coffee market is 19,600 tonnes or $87 million. The total soft drink (carbonated beverages and juices) market is estimated at 284 million crates a year or $1 billion. The market is highly seasonal in nature with consumption varying from 25 million crates per month during peak season to 15 million during off-season. The market is predominantly urban with 25 per cent contribution from rural areas. Coca cola and Pepsi dominate the Indian soft drinks market. Mineral water market in India is 65 million crates ($50

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million) industry. On an average, the monthly consumption is estimated at 4.9 million crates, which increases to 5.2 million during peak season.

RECENT ISSUES

1. Xtazy, another energy drink for the Indian market

The Indian market for energy drinks was estimated recently to have a size of Rs 500 crores, about 90 million Euros. The market which is so far dominated by Red Bull, is attracting 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 fourth largest energy drink in the US”, says Rohan Malhotra, Managing Director of R. M. Indian Liquor Pvt. Ltd., the exclusive importer for Xtazy. Malhotra has launched Xtazy already in Eastern India, and was looking now for a distributor in the Delhi area, when FII spoke to him during IFE fair in Delhi recently.

In order to take on Red Bull and get a share of 20% from their business, Malhotra wants to offer better conditions to distributors. “We provide a margin of 6-8% to a distributor, who thus can earn about Rs 6 a can”, Malhotra says. “This is more than what Red Bull offers which is only about 2 – 3 Rs per can.” Xtazy is available in cans of 350 ml, thus more than the usual 250 ml of other energy drinks, and will be priced with a MRP 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

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night parties in a second round. In marketing communication, he is highlighting not only the variants, but also health effects as the USPs of Xtazy, which are derived from ancient herbs used in the drink like gingko and guarana. The extract of gingko biloba leaf has been shown to dilate blood vessels and has the ability to increase peripheral blood circulation, especially to the brain, the company writes in a leaflet. Guarana from Brazil would serve to promote weight loss by increasing the metabolic rate and reducing the appetite.

Besides the US, Malhotra says, Xtazy would be marketed also in Israel, Ukraine and in 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 café outlet in India at Hiranandani, Poway, and Mumbai. The company also tied up with Ideal Hospitality Private Ltd (IHPL), which would own the brand in the country and south-east Asia.

Jayant Mahiskar, chairman and MD, IHPL, said, "Aromas is being launched keeping in mind the true coffee connoisseurs. We aim at targeting the youth and corporate at our outlets and Poway 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 all tastes. Aromas ensures freshness and fullness of flavour." According to the agreement with Aromas, IHPL will pay about 1.5% of the gross revenue earned.

Further, the company has decided to invest about Rs. 50-75 crores in the next three years to expand its footprint with 99 outlets in India.

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3. China rejects Coke bid to take-over major juice maker China has rejected Coca-Cola's $2.5 billion bid to buy a major Chinese juice maker. The purchase of Huainan Juice Group Ltd would have been the biggest foreign acquisition of a Chinese company to date. The proposed purchase was rejected on anti-monopoly grounds, the Chinese commerce ministry announced on its website.

Coca-Cola's bid in September prompted an outcry by nationalists who urged the government to bar foreigners from acquiring one of China's most successful home-grown brands. Rival juice producers warned that the acquisition would give Coca-Cola too dominant a position in China's beverage market. A Coca-Cola spokesman in Hong Kong learned of the rejection of the sale had no immediate comment. Huainan’s founders and major shareholders already had endorsed the sale.

If Coke were to take over Huainan, it will dominate the soft drinks market in China, which not only hurts consumers, but also other sector participants. Huainan controls more than a tenth 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.

According to analysts China's ruling on Coke could cut both ways in that Chinese firms that have been making increasingly high profile acquisitions abroad may run into trouble of their own.

4. Pepsi's Slice kicks off the new season with 'Aamsutra' PepsiCo's popular mango juice drink brand- Slice kicks off the 2009 season with its new 'Aamsutra' concept.

According to Home Battiwalla, business head, juice & juice drinks, PepsiCo India, Slice had seen powerful consumer momentum post

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the re-launch of 2008. The new winning formulation has been appreciated by consumers. Aamsutra has driven strong disruption in the juice and juice drink category. All of this has made Slice the fastest growing mango drink brand in the country.

"South India is the lead market for mango drinks in the country. Andhra Pradesh is the biggest mango market and also the fastest growing market for Slice and mango drinks in the country. Tamil Nadu is amongst the top three states and Slice is the market-leader in Tamil Nadu," he added Pepsi has now opted for a new brand ambassador, Katrina Kaif.

"The creative thought behind the new communication was to further enhance the Slice experience into dimensions of pleasure, sensuality and indulgence. Last year's commercial was about enumerating the principles of 'Aamsutra' or the art of experiencing pure mango pleasure with the new Slice. This year, the commercial portrays the next 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 new fruit-based lemon drink LMN in the non-carbonated segment. The new brand is a natural lemon juice drink and the only brand in India with a taste closest to homemade, fresh lime water (Nimbu pani). According to the company, LMN will offer consumers a healthy, refreshing drink with the goodness of vitamin C. Every summer, the Indian beverage market has seen cola majors

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battle it out. This summer, the launch of LMN will see 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 a nimbu pani drink, Nimbus, under the 7Up brand. On the occasion of LMN's launch, Nadia Chauhan, joint managing director and CMO, Parle Agro, said, "Nimbu pani has traditionally been India's most commonly consumed cold beverage. In fact the idea of a branded lemon drink is so simple that you would wonder why nobody thought of it earlier. The challenge for us was packaging a natural product 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 Rs 5, Rs 10 and Rs 23 respectively. The company aims to touch a turnover of Rs 3000-3500 crores by 2011.

The company will target both (youth and adult) segments of consumers to turn them into branded consumers of nimbu pani. Besides this LMN will also target an emerging segment of consumers who are looking for a healthy and refreshing beverage in the country. "For the last 20 years, Parle Agro has been the market leader in fruit based beverages, we have constantly worked keeping in mind Indian preferences while formulating products that cater to the Indian palate. It is without any doubt that only an Indian company can understand what real nimbu pani tastes like and what the Indian consumer wants in a packaged offering," Chauhan added.

Further, the company claims that packaged nimbu pani will have tremendous growth potential, higher than other packaged drinks mainly because of a major shift in consumer behaviour. Today, the beverage consumer is looking for hygiene, convenience, refreshing taste, affordability and year-round availability. The name LMN is

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derived from the SMS version of the word lemon. Parle Agro also owns other fruit drink brands like Fruity, Appy Fizz and packaged drinking water, Bailey.

6. PepsiCo launches 'Nimbus,' packaged lemon juice with no fizz and artificial flavours

PepsiCo India has launched its packaged nimbu paani, Nimbus, 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 ml returnable 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, Nimbus, is specially developed to suit Indian tastes and preferences.

"Nimbooz is an affordable offering for consumers on the go because of its ready-to-drink format that is both convenient and hygienic. The proposition of the Indian refresher perfectly captures the mass appeal of this product and will certainly drive consumer connect, stated Ms Alpana Titus, Executive VP-Flavours, PepsiCo India.

PepsiCo has drawn up an intensive consumer activation campaign to market Nimbus.

The 360 degree marketing communication plan will revolve around building awareness through multi-city launches and road shows,

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comprehensive 3D activation, leveraging Out-of-Home (OOH) media, radio, press and outdoors. Aggressive trial generation and sampling initiatives will also be taken forward across major cities of the country. A special 'Nimbooz Highway Gadi' has been created that will visit the four major highways connecting Delhi to Jaipur, Dehradun, Agra to drive trails and consumer education.

7. Coke launches fruit-flavoured Fanta Apple nationally

After successfully introducing it in southern markets last year, Coca-Cola India has launched its fruit-flavoured soft drink 'Fanta Apple' nationally. The product is available in 200 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 lakh customers with sample apple flavoured drink to extend its market leadership in the fruit flavoured segment in Andhra Pradesh and Tamil Nadu.

"As per consumer research, we have found that after orange, apple is the most preferred fruit 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 a part of the company's $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 the national launch of Fanta Apple, we are stepping stones to extend Coca

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Cola India's market leadership in the fruit-flavoured sparkling drink segment," Kini added. The company has also announced Bollywood actress Genelia D'Souza as the new brand ambassador of the Fanta brand.

According to reports, the current expected Indian soft drink market is about Rs 6,000 crore, in which the company shares about 50% market with its various brands like Coke, 7 Up, Fanta, Sprite and Thums Up.

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STUDY OF GROWTH OF SOFT DRINK MARKET

SOFT DRINKS:

Carbonated drinks are dominated by artificial flavors based on cola, orange and lime

with Pepsi and coca-cola dominating the market. The entire part of the drink is based on

its artificial flavors and sweetening agents as no natural juice is used.

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 34 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.

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MAJOR PLAYERS IN SOFT DRINKS

SEGMENT

1.COCA COLA : thanda matlab coca cola!!!

Coca cola has truly remarkable heritage. From a humble beginning in 1886 it has now become the flagship brand of largest manufacturer, distributor of non alcoholic beverages in the world.

In India, coca cola was the leading soft drink till 1977 when govt. policies necessitated its departure. Coca cola has made its return to the country in 1993.and made significant investment to ensure that the beverage is available to more and more people in remote as well as inaccessible parts of the world.

Coca cola returned to India in 1993 and over the past ten years has captured the imagination of the nation, building strong association with cricket, the thriving cinema industry, music etc. coca cola has been very strongly associated with cricket, sponsoring the world cup in 1996.

In 2002, coca cola launched the campaign,”Thanda Matlab coca cola”. in 2003,coke was available for just rs,5 crores in the country.

2. FANTA : GHOONTH BHAR SHARARAT KAR LEY!!!

Fanta entered the Indian market in year 1996 under the coca cola brand .over the years, 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 uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment.

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3. LIMCA: LIME AND LEMONI!!!

Drink that can cast a tangy refreshing spell on anyone, anywhere. Born in 1971, Limca has 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 continues to be leading flavoring soft drinks in the country. Dive into the zingy refreshment of limca and walk away a new person.

4. 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 soft drinks, leading clear lime category.

Today sprite is perceived as a youth icon. With strong appeal to youth sprite has stood for a straight forward and honest attitude. Its clear crisp hingtaste encourages today’s youth to trust their instincts, influence them to be true who they are and to obey their thirst.

5. THUMS UP: TASTE THE THUNDER!!!

Strong cola taste, exciting personality. Thums up is a leading carbonated soft drink and most trusted brand in India. Originally company in 1993.

Thums up, is, known for strong, fizzy taste and its confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the man from the boys.

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6. MAAZA: YAARI DOSTI TAAZA MAAZA!!!

Maaza was launched in 1976. In 1993, maaza was acquired by coca cola India. Maaza currently dominates the fruit drink category. Over the years, maaza has become synonymous 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 emotional benefit to the moms rightly captured in tagline, “yaari dosti, and taaza maaza”.

7. PEPSI: YEH DIL MAANGE MORE!!!

Pepsi cola is a carbonated beverage that is produced and manufactured by Pepsi co. It is sold in stores, restaurants and from vending machines. The drink was first made in the 1890’s in North Carolina.

The brand was trademarked on June 16, 1903.There have been many Pepsi variants produced 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)

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STUDY OF GROWTH OF FRUIT DRINK MARKET

FRUIT JUICES

Branded fruit juice market in India holds an immense potential. Usually confused and considered synonymous with non-aerated drinks, fruit pulps, juices and 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. However the withdrawal of exemption has inflated costs and can affect growth, with dramatic change 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.

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MAJOR PLAYERS IN THE FRUIT DRINK

SEGMENT

DABUR REAL

Dauber’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 be the only fruit juice in packaged form .i.e.100%preservative free. Real, with market share of 57% comes in nine flavours:

Orange Mango Pineapple Mix fruit Grape Guava Litchi Tomato Cranberry

Real Active is 100%fruit juice with no added sugar and is available in following variants:

Orange Apple Orange- carrot

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GODREJ

The food division of godrej industry produces and market fruit drinks, fruit nectar and soft soymilk. Godrej’s brand JUMPIN comes in the following flavour:

Mango Pineapple Apple Litchi Orange

Godrej’s x’s is a range of fruit nectar with more fruits. It’s available in following flavours:

Orange Apple Grape

PEPSI’S TROPICANA

Tropicana brand fruit juice enjoys a market share of 25% and has registered a double digit growth and has outpaced the growth of fruit juice market in India. It is available in following flavors:

Orange Apple Grape Cranberry

LEH BERRY

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It is a product from Ladakh Foods. Its first fruit juice in Delhi and it's selling it in the more affluent parts of town. It enjoys a market share of 4% and is available in a variety of flavours:

Pineapple Apple Mixed fruit Orange Blackcurrant Mango Guava

PARLE’S FROOTI and APPY

Frooti was launched back in 1985 and enjoys market dominance with 85% of market share. 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.

RESEARCH METHODOLOGY

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METHODOLOGY

Every project work is based on certain methodology, which is a way to systematically solve the problem or attain its objectives. It is a very important guideline and lead to completion 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 study

Framing of questionnaire keeping objectives in mind (considering the objectives)

Feedback from the respondents Analysis of feedback Conclusion, findings and suggestions.

PURPOSE OF THE STUDY

The main aim of this research study is to analyze the preference of people (of different age groups) on consumption patterns of Soft Drinks and Fruit Juices.

OBJECTIVE OF THE STUDY

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· 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.

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 marketing research project. It specifies the details of the procedures necessary for obtaining the information needed to structure and/or solve marketing research problem. On the basis of fundamental objectives of the research we can classify research design into two general types :

EXPLORATORY RESEARCH

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Exploratory research is one type of research design, which has its primary objective the provision of insights into, and comprehension of, the problem situation confronting the researcher.

CONCLUSIVE RESEARCH

Conclusive research is designed to assist the decision maker in determining evaluating and selecting the best course of action to take in a given situation.

Conclusive research can be further divided into two types:-

Descriptive Experimental

The research design used in this project is a DESCRIPTIVE DESIGN.

Descriptive study as the name implies is designed to describe something-for example the characteristics of users of a given product, the degree to which the product use the varies with income, age, etc.

SAMPLING TECHNIQUE USED:

This research has used convenience sampling technique.

1) Convenience sampling technique: Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient.

SELECTION OF SAMPLE SIZE:

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For the study, a sample size of 50 has been taken into consideration.

SOURCES OF DATA COLLECTION:

Research will be based on two sources:

1. Primary data

2. Secondary data

1) PRIMARY DATA:

Questionnaire: Primary data was collected by preparing questionnaire and the people were 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 USED

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The main statistical tools used for the collection and analyses of data in this project are:

· Questionnaire

· Pie Charts

· Bar Diagrams

Data analysis

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NAME:-AGE:-SEX:- OCCUPATION :-

Q1. What do you prefer to drink?(a) soft drink (b) fruit juice (c) both of the above (d) none of the above

Soft Drink Fruit Juice Both of the above None of the above0

5

10

15

20

25

Q2. How often do you drink your brand ?

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(a) daily (b) juice a week(c) once a week (d) occasionally

3010

10

Daily

Juice a week

Once a week

Occasionally

Q3. On what occasion , do you prefer to consume soft drink ?(a) feeling thirsty (b) parties/function(c) others, please specify

20

5

25

Column1

Feeling Thristy

Parties/function

Others

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Q4. On what occasion do you prefer to consume fruit juice ?(a) feeling thirsty (b) parties/function(c) others, please specify

3010

10

Feeling Thirsty Parties Others

Q5. Which drink do you like most ?

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(a)soft drink (b)fruit juice

Soft Drink Fruit Juice0

5

10

15

20

25

30

35

40

10

40

Q6. What induces you to buy soft drink ?(a) price with quality (b) taste (c) status symbol (d) brand ambassador of your choice

5

10

30

5

Price with qualitytastestatus symbolbrand ambassador of your choice

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Q7. What induce you to buy fruit juice ?(a) price (b) health drink(c) flavours (d) easy availability

price health drink flavours easy availability0

5

10

15

20

25

30

35

Column3Column1Column2

Q8. What do you prefer other than soft drink or fruit juice ?(a) coffee/tea (b) shakes(milk/ice cream/fruit)(c) lassi (d) others, please specify

10

30

10

Column1

Coffee/teashakeslassiOthers

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Q9. How do you rate the below following ?

EXECELLENT GOOD AVERAGECANNED JUICEFRESH JUICE

Q10. Why do you prefer soft drink ?(a) status symbol (b) to remove your thirst(b) easy availability (d) others, please specify

20

10

20

Column1

Status symbolto remove yur thristeasy availabilityothers

Q11. Why do you prefer fruit juice ?

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(a) health drink (b) to remove thirst(c) flavours (d) others. Please specify

health drink to remove thrist flavours others0

5

10

15

20

25

30

35

40

45

Series 1Column2Column1

Q12. Which one of the below is economy ?

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(a)soft drink (b) fruit juice

Column1

Soft drinkfruit juice

Q13. Do advertisement effect your purchase ?(a)yes (b) no

Column2

yes no

Q14. Name any three of yours favourite brand ?

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(a)………………………..(b)………………………….(c)…………………………

Q15. Name of any three of your favourite brad in soft drink ?(a)…………………………(b)………………………….(c)…………………………..

Q16. Which one is more hygienic ?(a)soft drink (b) fruit juice

soft drink fruit juice0

10

20

30

40

50

60

Series 1

Series 1

Q17. With whom you prefer to drink fruit juice ?

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(a) alone (b) family(c) friend (d) others, please specify

alone family friend others0

5

10

15

20

25

30

35

Q18. With whom you prefer to drink in soft drink ?

50

(a) alone (b) family (c) friend (d) others, please specify

alone family friend others0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Series 1

Series 1

Q.19 Which advertisement influence you to buy the drink ?

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(a) television advertisement (b) print advertisement(c) others, please specify

Column1

televisionprintothers

Q20. Are you aware of the offer available on the drink ?(a)yes (b) no

Column1

yesno

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Conclusion-

Energy drink is preferred by more number of males than females whereas females prefer juices more than energy drinks.

Population below 15 years love juices and a very close ratio between energy drink and juice consumers is in the age group of 16-45 years.

People with monthly income of 30000 and above consume more energy drinks.

Students prefer juices whereas a 1:1 ratio of preference of energy drinks and juices exits between business and service class people.

People consume energy drinks most on weekly basis whereas juices on fortnight basis.

Juices are preferred early morning and late-night whereas energy drinks are preferred throughout the day.

Energy drinks and juices will be referred on an equal basis to others whereas juice consumers are much more appeherent for the same.

People who consume both energy drink and juices on daily basis will suggest the same to others (strong correlation)

People with monthly income in range of 20,000 to 30,000 consume health drink and juices on a daily basis.

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For juices easy availability, health benefits, nutrient value and price considered as a common entity whereas for energy drinks easy availability, health benefits, nutrient value and taste.

Real ranked one in consumer among juices.

Gatorade ranked one in consumer among energy drink.

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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.

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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.

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BIBLIOGRAPHY-:

WEBSITES:

http://www.euindiaaviationsummit.com/health-drinks/

http://www.naturalnews.com/soft_drinks.html

http://www.the-infoshop.com/topics/FD14_en.shtml

www.foodindustryindia.com

http://en.wikipedia.org/wiki/Beverage

http://www.foodindustry.com/newfood/detailnews.jsp?n=Xtazy,%20another%20energy%20drink%20for%20the%20Indian%20market&id=598

BOOKS:

Malhotra . N.K, “Marketing Research” Fifth edition.

Kothari C R, “Research and Methodology- Methods & Technique”, New Age International (P) Ltd.,2004

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Questionnaire

NAME :-

AGE :-

SEX :- OCCUPATION :-

Q1. What do you prefer to drink ?

(a) soft drink (b) fruit juice

(c) both of the above (d) none of the above

Q2. How often do you drink your brand ?

(a) daily (b) juice a week

(c) once a week (d) occasionally

Q3. On what occasion , do you prefer to consume soft drink ?

(a) feeling thirsty (b) parties/function

(c) others, please specify

Q4. On what occasion do you prefer to consume fruit juice ?

(a) feeling thirsty (b) parties/function

(c) others, please specify

Q5. Which drink do you like most ?

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(a)soft drink (b)fruit juice

Q6. What induces you to buy soft drink ?

(a) price with quality (b) taste

(c) status symbol (d) brand ambassador of yourchoice

Q7. What induce you to buy fruit juice ?

(a) price (b) health drink

(c) flavours (d) easy availability

Q8. What do you prefer other than soft drink or fruit juice ?

(a) coffee/tea (b) shakes(milk/ice cream/fruit)

(c) lassi (d) others, please specify

Q9. How do you rate the below following ?

EXECELLENT GOOD AVERAGE

CANNED JUICE

FRESH JUICE

Q10. Why do you prefer soft drink ?

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(a) status symbol (b) to remove your thirst

(b) easy availability (d) others, please specify

Q11. Why do you prefer fruit juice ?

(a) health drink (b) to remove thirst

(c) flavours (d) others. Please specify

Q12. Which one of the below is economy ?

(a)soft drink (b) fruit juice

Q13. Do advertisement effect your purchase ?

(a)yes (b) no

Q14. Name any three of yours favourite brand ?

(a)………………………..(b)………………………….(c)…………………………

Q15. Name of any three of your favourite brad in soft drink ?

(a)…………………………(b)………………………….(c)…………………………..

Q16. Which one is more hygienic ?

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(a)soft drink (b) fruit juice

Q17. With whom you prefer to drink fruit juice ?

(a) alone (b) family

(c) friend (d) others, please specify

Q18. With whom you prefer to drink in soft drink ?

(a) alone (b) family

(c) friend (d) others, please specify

Q.19 Which advertisement influence you to buy the drink ?

(a) television advertisement (b) print advertisement

(c) others, please specify

Q20. Are you aware of the offer available on the drink ?

(a)yes (b) no

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