REPORT

OF

WINTER PROJECT

ON

ANALYSIS OF BRAND PREFERENCE OF SOFTDRINKS IN THE GLOBAL MARKET

Submitted to:---- Submitted to:--MS.RUPALI SWATI KATHPAL MBA(FACULTY) MBA/05/49

N.C. COLLEGE OF ENGENEERING, ISRANA(PANIPAT)

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AKNOWLEDGEMENT

First & foremost, I am very thankful to Ms.Rupali (Project Guides) who shown keen interest in project and guided me in project work.

Further, I would also like to thank all the Peoples of Panipat and that all are responded to survey, without whom it would be impossible for me to complete the project.

Last but not the least, my sincere regards to Mrs. Pooja Walia (H.O.D, MBA Deptt.) and all faculty members of N.C College Of Engineering Israna (Panipat)for their pain stalking supervision and down right suggestions which brought a lot of confidence in me to complete this dissertation report.

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EXECUTIVE SUMMARY

One of the most competitive market in the world at present is the soft drink market in which crores of rupees on advertisement and other promotion activities are being spent.It is one of the many sectors ,registering steady growth over a hundred years throughout the world .In India the soft drink industry is flourishing well with a wide range of brands comprising both popular-international ,national & regional branded soft drinks. In present investigation , the impact of globalisation on brand preference of soft drinks & the factor determining the brand preference are studied.

Primary data has been collected regarding present study of soft drinks through questionnaire in Panipat city.

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DECLARATION

I, Swati Kathpal, hereby declare that the Dissertation on “Analysis of Brand Preference of Soft Drinks in Global Market”, Panipat assigned to me for the requirement of partial fulfillment of “Master of Business Administeration (MBA)” under Kurukshetra University, Kurukshetra. It is the original work conducted by me and data provided in this study is authentic to the best of my knowledge and belief.

This report is not submitted to any other institute or university for the award of any other degree.

Swati Kathpal MBA

NCCE, Israna.

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INDEX

CONTENTS PAGE NO

AKNOWLEDGEMENT 2

EXECUTIVE SUMMARY 3

DECLARATION 4

INTRODUCTION TO TOPIC 6

SOFT DRINK INDUSTRY & ITS BRANDS 9

OBJECTIVE OF STUDY 17

RESEARCH METHODOLOGY 19

ANALYSIS & INTERPRETATION 22

RESULTS & DISCUSSIONS 27

LIMITATIONS OF STUDY 30

CONCLUSIONS & SUGGESTIONS 32

BIBLIOGRAPHY 34

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INTRODUCTION TO TOPIC

6

INTRODUCTION TO TOPIC

The Indian soft market is very wide & big to control ,as India has all types of seasons & different locations with different cultures . Soft drink industry is a massive industry with a stiff competition. All people , irrespective of their age & earnings , consume soft drinks & are interested in making their own choice of soft drink brand.

In modern business world , due to the development of science & technology , many new brands of products flood the market every year. When the new brands enter into market , some consumer switch over to it.

Hence, a study on brand preference becomes necessary. The purchase decision largely depends upon taste, quality, quantity, price, availability & the like.

Due to globalisation , there are many soft drink brands available in the market such as:

INTERNATIONAL BRANDS

COCA COLA BRANDS Coca-cola Fanta Sprite Gold spot Limca Maaza Thumbs up

PEPSI BRANDS

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Pepsi Mirinda Slice Lehar 7up

NATIONAL BRANDS

TORINO BOVONTA

LOCAL BRANDS

EYE BRAND KALIMARK RUBY

In current scenario, where the competition is tough, consumer choose according to their own will & pleasure & hence there exists a preference of brand. The company can achieve the objectives & complete in the market, only when they satisfy the needs of the customer by taking into account their reasons for brand preference, factors influencing it, level of satisfaction, complaints & suggestions.

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INTRODUCTIONTO

SOFT DRINKS

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INTRODUCTION OF SOFT DRINKS

A detailed analysis of the soft drinks market, providing forecast data to 2007.The report examines key local trends in soft drinks , with an emphasis on providing quality primary research data , obtained directly from major

players in the industry . It establishes the market size & structure , provides analysis of current market trends , & profiles the industry’s major players .

The Soft Drinks industry & the childhood obesity debate – management briefing : The childhood obesity debate affects & is affected by the Soft

Drinks industry . This briefing provides both an account of current public health thinking on the problems & causes of rising childhood obesity , along

with the views & actions of the soft drinks industry in response to what is undeniably a serious problem in many countries . The report presents a brief overview of what public health community expects from the industry’s of

soft drinks . The report examines what the soft drinks industry has done , is doing & will have to do in future , both at a collective & a company level ,to address the problems , engage in the debate & counter negative publicity . In

particular , the report examines similarities between the situation the soft drinks industry find itself in & the alcohol companies position with in the debate surrounding the adverse social & health consequences of alcohol

misuse , & where best practice in the area of corporate social responsibility (CSR) might be shared between the two sector. As with alcohol companies , the soft drinks industry has to be & be seen to be part of the solution & not ,

as it is currently viewed by some , part of the problem .

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SOFT DRINK INDUSTRY & ITS

BRAND PREFERENCE

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SOFT DRINK INDUSTRY

Soft Drink Industry is one of the most familiar Industry , which is affected by the globalization process to a great extent . Due to the impact of globalization , many International Brands have entered into the local market . In Tamilnadu also the impact of globalization on different Brands of Soft Drink is expected to be very high & deserves to be studied . Today most of the International Companies are successful are in Soft Drink Market, Because they spend huge amount on Advertisement & provide attractive offer to customers. All people, especially Teenagers are stimulated by these factors. In this Scenario, Local Brands are not able to spend much amount for improving their sales to stand the competition. Local Brands are available only in petty shops. The People of both semi urban & Urban areas don’t like the Local Brands of Soft Drinks, because they prefer only International & National products of Soft Drinks .

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CLASSIFICATION OF SOFT DRINKS BRANDS AVAILABLE IN MARKET

Through Investigation a study is made about the Brand preference of Soft Drinks in Globalised Market.

BRANDS:

1. INTERNATIONAL BRAND :

The Investigation has classified the international brand users of soft drinks. Coca-Cola & Pepsi are the important players in MNCs.From survey it is analysed that :

58.06% respondents prefer Pepsi Brand

41..94% respondents prefer Coca-Cola

PEPSI BRAND PREFERENCE:

Pepsi company manufacture different Brands like:

PEPSI MIRINDA SLICE LEHAR 7UP

The Pepsi Brand meet heavy competition with other Brands.

44.44% respondents prefer Pepsi

25.56% respondents prefer Mirinda

22.22% respondents prefer Slice

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7.78% respondents prefer Lehar & 7up

COCA-COLA BRAND PREFERENCE:

Coca-cola company manufactures different Brands like:

FANTA MAAZA LIMCA THUMS UP SPRITE GOLD SPOT COCA-COLA

27.69% respondents prefer Fanta

23.08% respondents prefer Coca-cola

18.46% respondents prefer Sprite

15.38% respondents prefer Maaza

7.70% respondents prefer Limca

6.15% respondents prefer Thums up

1.54% respondents prefer Gold Spot

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2. NATIONAL BRAND PREFERENCE:

Through Investigation it is analysed the Brand preference of National Brand consumers of Soft Drinks . National Brand plays an important role in Soft Drinks Markets in India. These brands are also affected due to Globalisation.

NATIONAL BRANDS:

Torino Bovonta

Through Survey it is analysed that :

58.33% respondents prefer Torino

41.67% respondents prefer Bovonta

After Globalisation nearly 60% of respondents consume Torino among the National Brands.

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3. LOCAL BRAND PREFERENCE:

The Local Brands of Soft Drinks face stiff competition after Globalisation . Because of the Globalisation many International Brands havecome into Local Market . The Local Brand preference is studied .

LOCAL BRANDS:

EYE BRAND KALI MARK RUBY

Through survey it is analysed that:

57.14% respondents prefer Eye Brand

28.57% respondents prefer Kali Mark

14.29% respondents prefer Ruby

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FACTORS INFLUENCING BRAND PREFERENCE:

Today, the Business World is characterized by heavy competition . Many firms are manufacturing the same product with different Brand names & at the same time the same firm is producing different Brands of the same product . Brand preference among the consumers may be related to the Personal attributes like age , educational qualifications , occupational status & monthly income .

AGE WISE CLASSIFICATION

Different age groups have different Physiological & Psychological characteristics & have quiet dissimilar social-cultural roles. So, to identify their behaviour , the age of the respondents needs due consideration . The investigation have made an attempt to find out relationship between the respondent’s age groups & their Brand preference .

To test the Hypothesis that there is no relation between age group & Brands , ANOVA is used. The investigation have concluded that the Brand is not affected by the age group of the consumers .

Thus, F-Test shows that there is no association between age of the respondents & their Brand preference .

EDUCATION WISE CLASSIFICATION

The educational profile of the consumer will affect their Brand preference . It is a known fact that, the educated people have more awareness about the Business environment & different products & hence they may prefer a Brand . Identifying the educational level of the Soft Drink consumers & the Brand preference is one of the aims of the study . The investigation have made an attempt to find out the relationship between education of the respondents & their preferred Brands .

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To test the Hypothesis that there is no association between education & Brand , ANOVA is used .The investigation have concluded that between the Brands there is no difference .

Thus F-Test shows that , there is no association between education of the respondents & their Brand preference .

OCCUPATION WISE CLASSIFICATION

The consumer behaviour is often influenced by occupational status of the consumers . Occupation of consumers influences Brand preference & tends ton place consumers in cultural & social background categories at important times during their lives . The investigation have made an attempt to find out relation between occupation wise classification of the respondents & their preferred Brands .

To test the Hypothesis that there is no association between Occupation & Brands , ANOVA is used . The investigation have concluded that the Brand preference does not vary with the occupation of the Soft Drink consumers .

Thus the F-Test shows that , there is no association between occupation of the respondents & their Brand preference .

INCOME WISE CLASSIFICATION

The income level of the respondents is yet another factor which determines the Brand preference . Change in the consumer behaviour differs with the change in consumer income . The researchers have made an attempt to find out the relation between the monthly income of the respondents & their preferred Brands .

To test the Hypothesis that there is no association between income level & Brands , ANOVA is used . The investigation have concluded that between the Brands there is difference. The investigators have concluded that the income level of the consumers affects the Brand.

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Thus, the F- Test shows that there is association between income level of the respondents & their Brand preference .

INTERNATIONAL BRAND

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PEPSI

The company consist of frito-Lay North America , Pepsi co Beverages North America , Pepsi co International & Quaker Foods North America . Pepsi co brands are available in nearly 200 countries & territories & generate sales at the retail level of about $ 85 billion .

Many of Pepsi co’s Brand names are more than 100-years-old , but the corporation is relatively young . Pepsi co was founded in 1965 through the merger of Pepsi – Cola & Frito-lay . Tropicana was acquired in 1998 & Pepsi co merged with Quaker Oats Company , including Gatorade , in 2001.

Pepsi co offers product choices to meet a board variety of needs & preferences from Fun -for -you items to product choices that contribute to heathier lifestyles .

Pepsi co’s mission is “To be the world’s premier consumer products company focused on convenient foods & Beverages . They seek to produce healthy financial rewards to investors as they provide opportunities for growth & enrichment to their employees , their business partners & communities in which they operate . And in everything they strive for honesty , fairness & integrity .

Pepsi Co is founded by Donald M. Kendall , President & Chief Executive Officer of Pepsi Cola & Herman W.Lay , Chairman & Chief Executive Officer of Frito-Lay , through the merger of two companies . Pepsi – cola was created in the late 1890s by Caleb Bradham , a New Bern , N,C, Pharmacist . Frito-Lay , Inc. was formed by the 1961 merger of the Frito-Lay Company , founded by Elmer Doolin in 1932, & the H.W. Lay Company , founded by Herman W.Lay , also in 1932 . Herman Lay is Chairman of the Board of Directors of the new Company , Donald M . Kendall is President & Chief Executive Officer .The new Company reports sales $510 million & has 19000 employees .

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MAJOR PRODUCTS OF PEPSI

PEPSI-COLA COMPANY : Pepsi-Cola Company (formulated in 1898)

Diet Pepsi (1964)

Mountain Dew (introduced by Tip Corporation in 1948)

Frito-Lay , Inc. : Fritos brand corn chips ( created by Elmer Doolin in 1932)

Lay’s brand potato chips ( created by Herman W. Lay in 1938 )

Cheetos brand cheese flavoured snacks ( 1948 )

Ruffles brand potato chips ( 1958 )

Rold Gold brand pretzels ( acquired 1961 )

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COCA-COLA

The product that has given the world its best known taste in Atlanta , Georgia , on May 8 , 1886 . Dr. John Stith Permberton , a local pharmacist , produced the syrup for Coca-cola R & carried a jug of the new product down the street to Jacobs’ Pharmacy , where it was sampled , pronounced “excellent” & placed on sale for five cents a glass asa soda fountain drink . Carbonated water was teamed with the new syrup to produce a drink that was “ Delicious & Refreshing” a theme that continues to echo today wherever Coca-cola enjoyed .

Thinking that the two Cs look well in advertising , “ Dr. Pemberton’s partner & bookkeeper ‘ Frank M. Robinson , suggested the name & penned the now famous trademark “ Coca-cola” in his unique script . The first newspaper ad for Coca-cola soon appeared in The Atlanta Journal , inviting thirsty citizens to try “ the new & popular soda fountain Drink”. Hand – painted oilcloth signs reading “Coca-cola” appeared on store awnings , with the suggestion “Drink” added to inform passersby that new beverage was for soda foundation refreshment . During the first year , sales averaged a modest nine drinks per day .

Dr. Pemberton never realized the potential of the beverage he created .

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OBJECTIVE OF STUDY

OBJECTIVE OF STUDY

# To study the profile of soft drink consumers.

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# To determine brand preference of soft drinks in the global environment.

# To find out the factors influencing brand preference.

# To analyze the level of satisfaction of soft drink consumers.

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

Research Methodology in a way is systematic representation of research or any other problem. It is a written game plan for conducting research. It tends to describe the step taken by a researcher in studying the research problem along with a logical background.

1. SPECIFY THE RESEARCH OBJECTIVE

*To give information to customer.

*To study level of satisfaction.

*Determine brand preference of soft drinks.

2. PREFERENCE THE LIST OF NEEDED INFORMATION

Personal factors like age, educational qualification, occupational status & monthly income of consumer influence the brand preference & an association exists between the variables.

3. DESIGNING THE DATA COLLECTION PROCESS

PANIPAT district is one of main district of Haryana. Using convenient sampling technique from 250 respondents, during the period 2005-2006 , primary data was collected. All type of customers are included . Data collected were analysed statistically.

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4. SELECTING THE SAMPLE SIZE

Taking the sample of the study was not easy task. The objective and the limitation of the study have to be kept in mind before decided about the sample type.In the sample type all level of its consumers have with been covered. Basically the present customers as well as prospective customers were questioned help of the questionnaires.

5. ORGANIZING & CARRYING OUT FIELD WORK

After decided upon the sample size & preparing the questionnaire, the fieldwork has to be carried out. In the field work the place had to be chosen where you want to do your study. This project survey work was carried out in the Panipat city.

6. ANALYZING THE COLLECTED DATA

After the survey work was over & data had been collected the analyzing of the data must & its graphically representation was needed. So after the data collection process step by step analysis of data was done. On the basis of the analysis.

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ANALYSIS & INTERPRETATION

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ANALYSIS & INTERPRETATION

Profile of the Respondents

AGE NO. % EDUCATION NO. % OCCUPATION NO. % INCOME NO. %

0-20 110 44 ELEMENTARY 16 6.4 COOLIE 16 6.4 BELOW6000 122 49.8 20-30 80 32 HIGHER

SECONDARY105 42 GOVT. EMPLOYEE 18 7.2 6000-9000 64 25.6

30-40 34 13.6 GRADUATE 81 32.4 PVT. EMLOYEE 40 16 9000-12000 36 14.440 above 26 10.4 POST

GRADUATE26 10.4 BUSINESS MAN 20 8.0 12000-15000 20 8.0

22 8.8 PROFESSIONAL 12 4.8 ABOVE15000

8 3.2

STUDENT 116 46.4HOUSE- WIFE 18 7.2TECHNICAL 10

TOTAL 250 100 TOTAL 250 100 TOTAL 250 100 TOTAL 250 100

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Brand Preference of Soft Drinks

BRAND NO. OF RESPONDENTS

PERCENTAGE

LOCAL BRAND 35 14.00NATIONAL BRAND 60 24.00

INTRNATIONAL BRAND

155 62.00

TOTAL 250 100.00

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LEVEL OF SATISFACTION

To analyse the level of satisfaction of the consumers towards the Soft Drinks, an Investigation has been made .

%age LEVEL OF SATISFACTION40% Highly satisfied with quality of Soft Drinks.28.80% Highly satisfied.28% Moderately satisfied.3.20% Satisfied to lowest extent.

40% of the Consumers are very highly satisfied with the quality of Soft Drinks.

CORRELATION ANALYSIS

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The Price & satisfaction level play the most important role in the purchase of Soft Drinks . The level of Satisfaction of Consumers are measured as high, medium & low . The following Hypothesis is framed i.e. there is a close relationship between Price & Satisfaction level . To test this Hypothesis , the Correlation analysis is used .

The result of correlation analysis is r= 0.70 since, there is a fairly good Positive Correlation , the Hypothesis is accepted & the Price & level of satisfaction are closely associated . There exists linearity between the Price & level of satisfaction .

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RESULTS & DISCUSSION

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RESULTS & DISCUSSIONS

The Soft Drinks Market till early 1990s was in the hands of domestic players like Kalimark , Mappillai Vinayagar , Ruby & Eye Brand etc, but with the opening up of Multi National Companies , Pepsi & Coke Brands enter into the Market . Pepsi scores over Coke . Pepsi entered Indian Market in 1991 & Coke re – entered in 1993 . Pepsi has been targeting its products throughout the year * the sales reached Rs. 332.31 crores by 2004 itself . Coke on the other hand struggled initially in establishing itself in the market & sales could only reach Rs. 199 crores by 2005 .

Non-alcoholic Soft Drinks beverage Market can be divided into Soft Drinks & Fruit Drinks . Soft Drinks can be further divided into carbonated & Non- carbonated Drinks . Cola , lemon & Oranges are carbonated drinks , while Mango Drinks come under Non – carbonated category . The Soft Drink Market can also be segmented into Cola products & non-cola products . Cola products alone account for around 60 percent of the total Soft Drinks Market . The Brands that fall under this category are Pepsi , Coca-Cola & Thums up , Diet Coke & Diet Pepsi . Non-Cola segment based on flavour are orange , cloudy lime , clear lime & Mango.

Orange flavour based Soft Drinks constitute around 17 percent. The segment is largely dominated by National brands like Fanta of Coca-Cola & Mirinda Orange of Pepsi co , which collectively from 15 percent of the Market & rest of the Market is in the hands of smaller Brands like Crush , Gold Spot etc. Cloudy lime flavour is largely dominated by Limca of Coca-Cola & Mirinda lemon of Pepsi co. Clear time segment of the Market witnessed good growth initially . The Brands available in this segment are 7up of Pepsi & Sprite of Coca Cola . This segment constitutes 3 percent of the total Soft Drink Market . Mango flavour segment constitutes 2 percent of the total Soft Drinks Market & it directly competes with mango based fruit like Frooti . The leading Brands in this segment are Maaza of Coca Cola & Slice of Pepsi . Soft Drinks are available in glass bottles ,

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aluminum cans , pet bottles & disposable containers for domestic consumption.

The hot & humid climate of Tamil Nadu is a favourite ground for Soft Drink Market in India . The Soft Drink Market for both Coke & Pepsi , because it contributes upto 8 percent of their total sales on all India level . In 2003 , the Soft Drink industry posted a volume growth of only 6% overall , according to the new beverage Digest / Maxwell all- channel data. That growth rate represents a slight decrease from 2002’s growth rate range of 2% - 4% through out the 1990s. In 2003 , the industry’s total sales were Rs. 63.8 billion , & total volume was 10% billion cases .

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LIMITATIONS OF STUDY

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LIMITATIONS OF STUDY

It is very small research, which may be insufficient to give the real picture scope of the brand preference in panipat and its catchment area.

The research is based on collected data and the researcher is not responsible for any wrong inference drawn due to the incorrect filling of the questionnaire by the respondents.

The method of result is also limited to the reliability of method of investigations, measurement and analysis of data.

People were not interested in filling questionnaire properly.

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CONCLUSION & SUGGESTIONS

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CONCLUSIONS & SUGGESTIONS

After globalisation most of the respondents (155,82%) like the international brand . 58.06% of the respondents prefer Pepsi brand,

Fanta is liked the most . Among the Pepsi brands, Pepsi (44.44%) has more patronage. Among Coca-Cola brand Fanta is liked much.

Nearly 58.33% of the respondents take torino in national level brand. In local level soft drinks (57.14%) Eye has more sales. The F –TEST reveals that there is no association between age, education, occupation & the choice of brands. But there is association between monthly income & brand preference .

40% of the consumers are quite satisfied with the quality of the soft drink. The correlation analysis reveals that there is a close relationship between price & satisfaction level.

It is suggested that the companies manufacturing soft drinks must manufacture high quality soft drink with Orange taste, in order to compete with multi national companies.

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BIBLIOGRAPHY

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BIBLIOGRAPHY

www.brand republic.com

INDIAN JOURNAL OF MARKETING (Magazine)

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