Sachin Report 4

7/31/2019 Sachin Report 4

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1. INTRODUCTION

Pepsi was founded in New York in 1965. It is Producing Non-alcoholic

beverage and Food processing items. Pepsi is a carbonated beverage that

is produced and manufactured by PepsiCo. It is sold in retail stores,

restaurants cinemas and from vending machines. The drink was first made in

the 1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The

brand was trademarked on June 16, 1903.

Pepsi arrived on the market in India in 1988.PepsiCo gained entry to India in

1988 by creating a joint venture with the Punjab government-owned Punjab

Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint

venture marketed and sold Lehar Pepsi until 1991, when the use of foreignbrands was allowed; PepsiCo bought out its partners and ended the joint

venture in 1994. Others claim that firstly Pepsi was banned from import in

India, in 1970, for having refused to release the list of its ingredients and in

1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards.

These controversies are a reminder of "Indias sometimes acrimonious

relationship with huge multinational companies." Indeed, some argue that

PepsiCo and The Coca-Cola Company have "been major targets in part

because they are well-known foreign companies that draw plenty of attention."

Ingredients

Pepsi-Cola contains basic ingredients found in most other similar drinks

including carbonated water, high fructose corn syrup, sugar, colorings,

phosphoric acid, caffeine, citric acid, and natural flavors. The caffeine-free

Pepsi-Cola contains the same ingredients minus the caffeine. Coca-Cola is a

carbonated soft drink sold in stores, restaurants and vending machines

worldwide. The Coca-Cola Company in Atlanta, Georgia produces it. It was

incorporated in 1886. The Coca-Cola Company claims that it is sold in over

200 countries. The US soft-drink giant, Coca-Cola, reentered India in the

1990s after abandoning its businesses in the late 1970s in the wake ofForeign Exchange Regulation Act of 1973.

The Act, meant to 'Indianite' foreign companies, made it mandatory for

foreign companies to dilute their shareholdings to 40 per cent. Instead of

diluting its shareholdings to the required limit prescribed by the Act, Coca-

Cola opted to discontinue its operations in India.

Coca-Cola is a leading player in the Indian beverage market with an

approximate 60 per cent share in the carbonated soft drinks segment.


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The US soft-drink giant, Coca-Cola, reentered India in the 1990s after

abandoning its businesses in the late 1970s in the wake of Foreign Exchange

Regulation Act of 1973.

The Act, meant to 'Indianize' foreign companies, made it mandatory for

foreign companies to dilute their shareholdings to 40 per cent. Instead ofdiluting its shareholdings to the required limit prescribed by the Act, Coca-

Cola opted to discontinue its operations in India.


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HISTORY OF SOFT DRINK

The manufacturing of soft drinks began in the 1830's. However, the evolution

of soft drinks took place over a much longer time period. The forerunners ofsoft drinks began more than 2,000 years ago when Hippocrates, the "Father

of Medicine," first suspected that mineral waters could be beneficial to our

well-being. But Hippocrates did not envision drinking the effervescent mineral

waters bubbling from the earth's crust. Instead, the Greeks and Romans used

them for bathing and relaxation. More than a thousand years passed before

mineral waters made the transition from therapeutic bath to refreshing

beverage.

In America, the transition resulted from the discovery of the natural springs in

New York. Many legends and myths developed about the earth's mysterious

waters, believed to be cures for everything from arthritis to indigestion. The

claims attracted physicians and scientists who began studying the tiny

bubbles fizzing from these waters.

Scientists eventually proclaimed the air being released as gas carbonium --

simple carbon dioxide. Soon afterwards they perfected a way of producing

artificially carbonated water in the laboratory. With that development, it was

only a matter of time before soft drinks made it into the hands of the American

public.

By the 1830's, both artificial and natural mineral waters were considered

healthy and refreshing products in America. But pharmacists, believing they

could improve upon their curative properties, experimented with a multitude of

ingredients from birch bark to dandelions. And while no miracle cures

developed, some very interesting flavors and tastes were discovered. Ginger

ale, root beer, sarsaparilla, lemon and strawberry were among the most

popular of the early flavors.


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The soft drink industry was a seasonal business in the early days, operating

primarily during the summer months. Sales were limited by few outlets for the

new carbonated beverages, and by the consumer's restricted mobility.

For many years, America's pharmacists were the driving force behind the

refinement of soft drinks and many of the flavors and combinations. Their

association with chemistry and medicine made them ideally suited for this

business, still part pharmacology and part refreshment.

The local pharmacy was the center attraction in many American towns in the

mid-1800's. It was customary to gather around the new soda fountains and

enjoy one's favorite refreshment mixed on the spot. However, as the corner

drugstore grew in popularity, the soft drink bottling industry was taking shape.

Gradually, demand grew for soft drinks to be consumed in the home. Bottling

the product proved difficult at first, since pressure from the carbon dioxide

forced corks right out of the bottles. Clearly, if soft drinks were ever to be sold

for consumption beyond the corner pharmacy, there would have to be a way

to keep them corked. Inventors worked for years to develop a solution,

patenting some 1,500 different corks, caps and lids for soft drink bottles.


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GLOBAL MARKET SCENARIO

Globally, carbonated soft drinks are third most consumed beverages. Per

capita annual consumption of carbonated soft drinks is nearly four times theper capita consumption of fruit beverages. (Source: Data from the Beverage

marketing Corporation, as reported by the Canadian Soft drink Association).

Soft drink consumption is growing by around 5% a year, according to Global

Soft drinks 2010. (Zenith International, 2010).

Total volume reached 412,000 million liters in 2011, giving a global per capita

consumption of around 67.5 liters per year.

Source: Zenith International, 2002 www.globaldrinks.com

Viewed on BevNET.com (www.bevnet.com/news/2002/11.1.2002-Zenith.asp
http://www.bevnet.com/news/2002/11.1.2002-Zenith.asphttp://www.bevnet.com/news/2002/11.1.2002-Zenith.asphttp://www.bevnet.com/news/2002/11.1.2002-Zenith.asphttp://www.bevnet.com/news/2002/11.1.2002-Zenith.asp


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Consumption Trends (global level) in some soft drinks over the

period 2010-2011 Gallons/Capita

2009 2010 2011

Carbonated soft drinks 54.0 53.6 53.0

Bottled water 11.8 12.6 13.2

Juices 10.0 10.2 10.4

Tea 6.9 7.0 7.0

Sports drinks 1.3 1.4 1.5

\Source: Zenith International, 2010 www. Globaldrinks.com


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Viewed on BevNET.com (www.bevnet.com/news/2010/11.1.2010-Zenith.asp

Soft drink market size for FY00 was around 270 mn cases (6480mn bottles).

The market witnessed 5- 6% growth in the early90s. Presently the market

growth has growth rate of 7- 8% per annum compared to 22% growth rate in

the previous year. The market size for FY01 is to be 7000 mn bottles.


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Overview of indian market

INDIAN MARKET SCENARIO

Production

Brand 08-09 09-10 2010-11

Coke 56.22 59.41 55.54

Thums up 26.22 27.98 39.00

Fanta 17.54 12.6 10.44

Pepsi 74.45 76.48 75.00

Mirinda 19.41 21.49 23.75

7 Up 6.12 2.02 1.2

Sales:

Brands 2008-09 09-10 10-11

Coca-Cola 38.15 36.37 35.05

Thumps Up 17.8 17.13 21.46

Fanta 11.9 7.72 6.59

Pepsi 21.64 25.65 25.79

Mirinda 5.64 7.21 8.18

7UP 1.78 0.68 0.42

Others 3.09 5.25 2.52


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Growth of the company

Soft drink market size for financial year 2010 was around 270mn cases

(6480mn bottles). The market, which was witnessing 5-6% growth in the early'90s and even slower growth at around 2-3% in late 80s. Presently the market

growth has slowed down with growth rate of 7-8% per annum compared to 22%

growth rate in the previous year. The market size for the Year 2011 was .7000

million bottles. In the Asian market India stands at the 4th Rank in the rating from

financial years 2007 to 2011. To maintain the 4 th position in the Asian market

India had to consume 207.3 million cases in 2007, 207.3 million cases in

2008, 252.1 million cases in 2009, 269.7 million cases in 2010 and finally 298.5million cases in the year of 2011. During these years of continuous market

India had gained an annual growth of 9.5% in the annual plan, which is more

than double of the total Asian market growth of 4.2%.

Carbonated Soft drinks has grown to get the market of Rs. 2000 crore by value

in the year 2011, which was a huge amount for any industry and it is also on the

growing form. The market is growing day by day as the teenagers like soft

drinks more than any other conventional drink. Researcher can further get a

view of the cola and non-cola drinks available in the market, as in the soft drink

industrythere aredifferent segmentations

The market size for the Year 2011 was 7000 mn bottles, as per the figures in

the below given table. The market has grown 11.0% in the financial year2008-

2009 in comparison to the results of financial year 2010-2011.


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Growth of Market share by Case Volume at global level

2008 2009 2010 2011E

Coca Cola Company 41.1% 42.3% 44.5% 44.1%

PepsiCo, Inc 32.4% 30.9% 31.4% 31.4%

Cadbury Schweppes 3.2% 15.1% 14.3% 14.7%

Others 23.3% 11.7% 9.8% 9.8%

Indian partnership in the growth of the Asian Market share of soft drink industry

Volume by Country

2011 2010Per 4-Year

Country Rank 2007 2008 2009 2010 2011 Gal. Annual

China 1 070.6 1,218.3 1,332.1 1,531.9 1,595.7 1.86 10.5%

Philippine

2 466.2 530.8 639.0 586.2 583.4 10.78 5.8

Japan 3 529.3 535.5 520.0 510.0 506.5 6.00 -1.1

India 4 207.3 207.3 252.1 269.7 298.5 0.44 9.5

Thailand 5 286.1 299.3 269.1 230.5 254.9 6.24 -2.9

South 6 232.4 247.1 232.5 239.5 240.9 7.61 0.9

Pakistan 7 65.4 69.7 92.9 108.1 121.1 1.28 16.6

Indonesia 8 91.5 96.0 76.6 83.4 115.9 0.77 6,1

Taiwan 9 77.1 83.5 84.4 77.6 74.2 5.02 -0.9

Malaysia 10 79.5 85.2 78.3 68.7 65.5 4.51 -4.7


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About major company

INDIAN MARKET PLAYERS

Coco-Cola India Ltd. and PepsiCo India Ltd. are the two major players of theIndian soft drink industry, where both are trying to lead the market by the

means of market share, in the industry. Coca-Cola is on the top demand and

Pepsi is its archrival. In the rural or interior parts of the country both companies

are holding their monopoly in area. Where the companies are ruling the

market in terms of sales figures.

. PepsiCo India Ltd

Pepsi is a multinational company and it is popularly known as Pepsi Co.

International. It is a U.S. based company, but at present it is operating in 195

countries. Its turnover was $31.6 billion in 2010 and ranked Twenty Firstamong fortune 500 U.S. companies. It has its own Bottling operations and has

28 bottlers approximately. It is a diversified company and it is operating

successfully in soft drinks industry as well as in fast foods and restaurant

business. There are several brands like Pepsi and mirinda, which have

market, share of 27.1&7.3% respectively and teem, 7 Up and slice contribute

10.8% collectively.


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Coca-Cola India Ltd.

Coca cola is the only rival of Pepsi at the international level. As far as soft drinks

market is concerned, Coca Cola is ahead of Pepsi. Coca Cola is also a U.S.

based company and at present it is operating in the same countries, where

Pepsi is operating. Coca Cola's turnover was $ 18.5 billion in 2011 and ranked

fifty-eighth among fortune 500 U.S. companies. Coca Cola has focused itself

only on soft drinks market. It was coca-cola, which pioneered the soft drinks

sector and from very beginning, it retain its No. 1 position. Coca Cola was born

11 years before Pepsi in 2000. Pepsi was established in 1898. Both have beenselling thirst quenchers for 100 years that are now global brands. It has

franchisee owned bottling operations. There are approximately 53 bottlers. It

has brands like coke, Thums Up, Fanta and Limca which contribute 10.8%,

16.8%, 5.0% and 10% respectively and Gold Spot, Maza and others market

share is 6.5% collectively.

By world standards, India's per capita consumption of three servings is rock

bottom, less even than our neighbors Pakistan and Bangladesh. If demand

continues to increase annually at an average of 20%, then volumes could

reach 1 billion cases within eight years. One case is equivalent to 24 bottles of

300 ml each.

There are 360,000 retailers stocking soft drinks in India, where as in the

Philippines with its population at 60 millions has 400,000 outlets. Also, soft

drinks, which retail at anywhere between Rs. 6 and Rs. 10, are expensive when

measured against purchasing power. It takes an average Indian, 1.5 hours of

work to be able to buy a bottle; in other countries, the norm is five minutes.


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Status of soft drink companies in Indian market

Coca-cola

(Cola, Thums-up, Fanta,

Maaza, diet-coke)

Pepsi Co.

(Cola, Mirinda & 7 up & other

products)

Turnover Rs 792 bn Rs 1260 bn

Beverage Sales Rs 720 bn Rs 450 bn

International Sales

as % of total sales

70% 32%

Package Variations Bottle-200ml, 300 ml, 500ml,

1 litre, 1.5 litre

Cans-330ml Fountain

Dispensers

Bottle-200ml, 300 ml, 500ml,

1 litre, 1.5 litre

Cans-330ml Fountain Dispensers

(Market Share: 30% by volume)

Investment in India Rs 250 bn. Rs 200 bn.

New Investments Rs 240 bn Rs 300 bn

Source: Indian Journal Of Marketing, May 2010.


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Product profile

(1) Coca cola

The world's favourite drink. The world's most valuable brand. The most

recognizable word across the world after OK.

Coca-Cola has a truly remarkable heritage. From a humble beginning in

1886, it is now the flagship brand of the largest manufacturer, marketer

and distributor of non-alcoholic beverages.

,

Coca-Cola had signed on various celebrities including movie stars such as

Karishma Kapoor, cricketers such as Srinath, Sourav Ganguly,

southern celebrities like Vijay in the past and today, its brand

ambassadors are Aamir Khan, Aishwarya Rai, Vivek Oberoi and

cricketer Virendra Sehwag.

(2) Thumsup

Thumsup is a leading carbonated soft drink and most trusted brand inIndia. Originally introduced in 1977, Thumsup was acquired by the coca

cola in 1993.


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(3) Limca

Lime n' lemoni Limca, the 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 3 decades.

,,,,,

The brand has been displaying healthy volume growths year on year and

Limca continues to be the leading flavour soft drink in the country

(4) Fanta

Internationally, Fanta - The 'orange' drink of The Coca-Cola Company, is

seen as one of the favorite drinks since 1940's. Fanta entered the Indian

market in the year 1993.

Over the years Fanta has occupied a strong market place and is identified

as "The Fun Catalyst". ,,


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(5) Sprite

Sprite advertised as Clear hai. Worldwide Sprite is ranked as the No. 4

soft drink and is sold in more than 190 countries. In India sprite was

launched in year 1999 and today it was grown to be one of the fastest

growing soft drinks, leading the clear lime category.

(6) Mazza

Mazza advertised as- yaari-dosti taaza mazza. Mazza was

launched in 1976. Mazza was offered same real taste of fruit juices and

was available throughout the year.

In 1993, Mazza was acquired by coca cola India. Mazza currently

dominates the fruit drink category.


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(7) Minute Maid Pulpy Orange fruit drink,

The history of the Minute Maid brand goes as far back as 1945 when the

Florida Foods Corporation developed orange juice powder. The company

developed a process that eliminated 80 percent of the water in orange

juice, forming a frozen concentrates that when reconstituted created

orange juice.

Minute Maid- One of the world's largest juice and juice drink brands

(8) Kinley

The importance of water can never be understated. Particularly in a nation

such as India where water governs the lives of the millions, be it as part of

everyday rituals or as the monsoon which gives life to the sub-continent.

Kinley water understands the importance and value of this life giving force.

Kinley water thus promises water that is as pure as it is meant to be.

Water you can trust to be truly safe and pure.


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4. Introduction of the study

In the present scenario the competitions between the soft drinks increased

very high. The companies are struggling a lot to keep up their market share in

the industry and to improve the sales of their products i.e. the turnover of the

company. For this the company has to know their position in the market and

the opinion and the loyalty of the customers and the retailers when compared

to their competitor.

Because of this reason the comparative analysis is very important and useful

to the Company. By the use of comparative analysis the companies can

understand the position of the company and the strength of the company in

the market.

Through the comparative analysis we can understand that what strategies

the competitors are using for the increase their sales volume. From the study

we can gather the information regarding the opinion of the retailers on the

companies comparatively and this will help to plans for the future to increase

the performance of the company and to gain the loyalty of the retailers when

compared to the competitors.


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4.2 Literature review

(a). Title: - Work place stress.

Publications type: - Me SH Terms

Journal details:-

School of Health Care Practice, Anglia Polytechnic University,

Chelmsford, Essex CM1 1SQ, UK.

Date details:-

2003 Dec; 44(6):633-42.ss

(b). Title: customer satisfaction at soft drink

Publication type: Harvard Health Publication

Detail:

It would be represented customer to most prefer taste and

quality of softdrink. And it is to get more groth in market.

Date detail :

(2011) ISBN 978-1-935555-60-5


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4.3 OBJECTIVES OF THE STUDY

To study the overview of Pepsi and coca cola Company.

To know and compare the merchandising of Pepsi and Coke in retail outlets.

To identify the retailers opinion towards Pepsi products when compared to

coke products.

To offer some finding and suggestions to the company for the improvement of

its performance.


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4.4 HYPOTHESIS TEST

Q. 1.

CROSSTABS

Notes

Output Created 06-May-2012 19:38:38

Comments

Input Active Dataset DataSet0

Filter

Weight

Split File

N of Rows in WorkingData File

2

Missing Value

Handling

Definition of Missing User-defined missing values

are treated as missing.

Cases Used Statistics for each table are

based on all the cases with

valid data in the specified

range(s) for all variables in

each table.

Syntax CROSSTABS/TABLES=VAR00001 BY

VAR00002

/FORMAT=NOTABLES

/STATISTICS=CHISQ

/COUNT ROUND CELL

/BARCHART.

Resources Processor Time 0:00:00.967

Elapsed Time 0:00:01.488

Dimensions

Requested

2

Cells Available 174762


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CROSSTABS

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

VAR00001 *

VAR00002

2 100.0% 0 .0% 2 100.0%

Chi-Square Tests

Value df

Asymp. Sig.

(2-sided)

Exact Sig.

(2-sided)

Exact Sig.

(1-sided)

Pearson Chi-

Square

2.000a 1 .157

Continuity

Correctionb

.000 1 1.000

Likelihood Ratio 2.773 1 .096

Fisher's Exact Test 1.000 .500

N of Valid Cases 2

a. 4 cells (100.0%) have expected count less than 5. The minimum expected

count is .50.

b. Computed only for a 2x2 table


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Q. 2.

CROSS TABS

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

VAR00001 *

VAR00002

6 100.0% 0 .0% 6 100.0%

Chi-Square Tests

Value df Asymp. Sig.(2-sided)

Pearson Chi-

Square

18.000a 16 .324

Likelihood Ratio 15.956 16 .456

N of Valid Cases 6

a. 25 cells (100.0%) have expected count less than

5. The minimum expected count is .17.


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RESEARCH METHDOLOGY

5.1 Research Design:-

Research design is the plan, structure, and strategy of investigation

conceived so as to obtained answers to research questions and control

variance.

Here, I have used the descriptive research design because this research is

done only one time and sample which is taken into this research will not

use again into the future. So, the research which is undertaken by me is

descriptive.

It is an exploratrary research design.

Data Type:

Secondary Data

Data Source:

Magazines like Indian Journal of Marketing, Business world etc.

5.2 Data collection method:-

The data has been collected from:

PRIMARY DATA

Survey method: In this method a questionnaire was prepared for

collecting relevant information from the consumers.

SECONDARY DATA

Secondary data was collected from Madhurs annual report and

through its web site.


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5.3 Research Objectives:

To study carbonated soft drink industry in India.

To study the status of different soft drink companies in Indian

market.

To study the external environmental factor affecting soft drink

industry in India.

To study the attractiveness of Indian soft drink industry.

To study the various trends happening in Indian soft drink market.


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5.4 Population

All items in any field of inquiry constitute a Universe or Population. It can be

presumed that in such an inquiry, when all items are covered, no element of

chance is left and highest accuracy in obtained. Many times it is not possible

to examine every item in the population and sometimes it is possible to obtain

sufficiently accurate results by studying only a part of total population.

Our population for the research was the people living in Ahemdabad. In this

research study we have taken the responses of 100 customers from

Ahemdabad each of three of us for questionnaire .Out of which maximum

were women.

5.5 Sampling Technique Used:

There are 2 main types of sampling technique

1. Probability sampling

2. Non-probability sampling

The probability sampling is divided in to 2 types one is simple random

sampling another is complex random sampling. The non probability sampling

in mainly divided into 2 types convenience sampling and purposive sampling.

The method used for sampling technique was non-probability convenience

sampling method. This method was used because it was not know previously

as to whether a particular person will be asked to fill the questionnaire.Convenient sampling is used because only those people were asked to fill the

questionnaires that were easily accessible and available to the researcher.


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Sample Size

The sample size was carefully selected in order to collect as much true and

accurate information as possible, the size of the sample was selected keeping

in mind the time available, the cost involved, nature of the study etc. Sample

Unit - Respondent

Sample Size - 100

Sample Frame - Respondent were from Ahemdabad

Sample unit - Respondent, customers

5.6 Data collection instrument

The instrument used for data collection is Questionnaire because quite

often questionnaire is considered as the heart of a survey operation.

Hence it should be very carefully constructed. If it is not property set up,

then the survey is bound to fail. This fact requires us to study the main

aspects of a questionnaire

Questionnaire Tools:-

Open-ended question

Close-ended question

Dichotomous

Multiple choice

Likert scale

Limitations of the survey:-

Sometimes it becomes difficult to get co-operation from respondent.

Due to territory consideration, sample size is limited to 100 samples.

If respondents are busy, than it is very difficult to get proper responses

from them.

Sometimes the timing of the survey needs to be adjusted according to

the timing of the respondent.


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DATA ANALYSIS & INTREPRETATION

Q2.GENDER -

Male 65

female 35

0

10

20

30

40

50

60

70

male female

Series1


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Q3.OCCUPATION

0

5

10

15

20

25

30

35

40

Series1

professional 10businessman 4

service 35

student 36

housewife 5

anyother 10


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Q4. AGE :

20-25 25

25-35 55

35-45 15

above

50 5

0

10

20

30

40

50

60

20-25 25-35 35-45 above 50

Series1


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Q5. Do you take any soft drink?

0

10

20

30

40

50

60

70

yes no

Series1

yes 65

no 35


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Q6. Do you take any soft drink regularly or occasionally?

regularly 45

occasionally 55

0

10

20

30

40

50

60

regularly occasionally

Series1


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Q7. Which brand of cold drink you like the most?

pepsi 18

7up 10

dew 12

miranda 20

mazza 25

limca 30

thumps

up 35

sprit 25

0

5

10

15

20

25

30

35

40

Series1


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Q8. What is the reason behind choosing your brand?

taste 55

advertisement 5

easily

available 35

people like 10

0

10

20

30

40

50

60

taste advertisement easily available people like

Series1


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Q9. How many times in a week you take cold drink?

once 35

thrice 25

twice 15

morethan 3

time 25

0

5

10

15

20

25

30

35

40

once thrice twice morethan 3

time

Series1


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Q10. Which quantity of your cold drink you often purchase?

200ml 70

300ml 20

500ml 10

0

10

20

30

40

50

60

70

80

200ml 300ml 500ml

Series1


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Q11. Which flavor do you generally prefer?

lemon 25

orange 40

cola 15

other 20

0

5

10

15

20

25

30

35

40

45

lemon orange cola other

Series1


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Q12. If cola which particular brand you like?

pepsi 50

thumps 50

0

10

20

30

40

50

60

pepsi thumps

Series1


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Q13. If orange which particular brand you like?

miranda 35

fanta 65

0

10

20

30

40

50

60

70

miranda fanta

Series1


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Q14. If lemon which particular brand you like?

limca 50

miranda 35

7up 15

0

10

20

30

40

50

60

limca miranda 7up

Series1


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Q15. Since how much time you are using your brand?

1-6 month 22

1-2 year 36

6-12 month 32

more than 2

tears 10

0

5

10

15

20

25

30

35

40

1-6 month 1-2 year 6-12 month more than 2

tears

Series1


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Q16. Advertisement of which cola drink you remember the most?

coke 10

pepsi 25

7 up 10

sprit 15

fanta 15

thumps

up 25

0

5

10

15

20

25

30

coke pepsi 7 up sprit fanta thumps up

Series1


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OT ANALYSIS:

Opportunities:

There is an immense opportunity in the rural market. As the strategy oflow price has worked for the companies the market share of rural has

increased. Companies like PepsiCo and coke has already acquired the

rural share up to 15% and 35%. There is a chance to grow for these

two MNCs by continuing the same strategy.

As the whole industry is governed by the major two company PepsiCo

and coke there less chances for the unorganized and local brand to eat

their market share. So there is a lot of opportunity for the companies togrow without any interference. Moreover there are opportunity for any

other company which works under same lines.

Country like India has a large domestic market, so the industry has a

lot of opportunity to grow. As the growth of the industry should be twice

that of countrys GDP so the industry has a chance to achieve the

growth.

Due to urbanization, people have become more health conscious;

company can extended their products to branches by introducing

lemonade flavors and low calorie drinks i.e. diet coke and Pepsi.

Ability to grow because of rising demand in one or more market

segment.

As there are only two major companies in the industry, there is a

competitive advantage of each of them to grab the market share of

their rivals.


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Threats:

The major threats that can occur from the demographics are the ageing

population of India. Consumers can even get health conscious and

drink less sugar and more natural drinks.

In India, consumers can consider buying a soft drinkas an occasional

purchase. This would be bad news as there would be a small

percentage of the market, which can purchase it.

There are major two MNCs operating in the Indian soft drink industry

so there is neck-to-neck competition between them. As a result they

have the same product characteristics, color and packing. So there is

continuous threat of unorganized market, which gives similar

characteristics at lower prices. Under such situation differences are

shown through different advertising images.

Increasing intensity of the competition among industry rivals may affect

on profit margins.

As mentioned earlier, there are only two major companies in the

industry it is likely for any other new potential competitors to enter.

There may be the loss of sales due to the substitute products.

The growing bargaining power of customers, because of low switching

cost.


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FINDINGS

India has immense latent demand. The firms are pursuing this latent

demand with increased vigor.

The per capita consumption of Indians is lower than even Pakistan and

Bangladesh.

Entry and exits for any firm is difficult in soft drink industry.

Due to low per capita consumption in India, soft drink players invest

more in advertisement and sales promotion activities.

Companies of the industry penetrated the urban market by cutting the

cost and in rural market by improving the distribution channel.

Earlier the soft drink was considered as an occasional product in India.Nowadays it is considered as normal product, and become necessary

product for lower, middle and upper-middle class. 91% of soft drinks

are made to above classes.


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RECOMMENDATION

Though the coke is enjoying about 54% of the total market share and it is

market leader in Indian beverage industry. While with the 46 % market share

Pepsi is on the

second step.

If we are analyzing properly then we find Pepsi is small product portfolio than

coke, which is responsible for its second position.

Pepsi should increase its product portfolio to capture the Cokes market

share. Companies should focus on the taste of the product because 77%

population is influenced by taste only.

Young generation is the potential consumer so companies should more focus

on them. As we find that 40 % population consumes 200ml cold drinks. Which

comes in glass bottles, these bottles are being retuned back for refilling to

companies? Which is incurred again cost of re-transportation. If company

start to supply 200 ml cold drinks in pet bottles (plastid bottles) it will be good

for company because 40% of population is using only 200ml.


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LIMITATIONS

It was our 1st research project so due to curiosity we put our whole heart on

this project. But still there are certain limitations while doing the research

work. Some of the limitations are as follows.

One of the biggest limitations with this project work is the time factor. As we

did our project in Tricity which is not well known to us So it become difficult to

conduct survey in Tricity.

The sample size of 100 respondents is too small to find out the

consumer perception. Because we both were covering Pepsi & Coke both.

There might have been tendencies among the respondents to amplifying or

filter their responses under the testing.

In some cases, the respondent was not giving us the proper reply. He/she

might think that this is only wastage of time or this might create some problem

etc. And as a result he/she has given some fake answers and fills the

questionnaire very casually.

The area of study is limited and confined to certain limitation. It is possible that

some potential source might have remained untapped. Since the result has

been drawn on the basis of the information provided by the respondents

therefore there is a chance of error.

The questioners were in English so many people were avoiding filling the

questioners


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CONCLUSION

After the completion of project we have seen the different

aspects of this Project.

Also we have gained some new experience about theconsumer research. While surveying we have met a large number people,

with different perceptions, with different nature, and as a result of this we

have learnt a lot of things like how to talk with the different people with

different behavior. We have benefited a lot and this will definitely help us a lot

in the future.

Also the outcome that came out from this research work is that in Tricity coke

is the market leader with 54% market share. Pepsi is having only 46% market

share. We come to know that Pepsi is the leading brand of Pepsi co. with

29% market share of its total market share and Thums up is the leading

brand of coke with 28% market share of itself. Through this research we also

come to know that young generation is the

potential market for beverage industry, taste is the 1st preference to choosing

the product and one more important factor that below 12 years and above to

50years people like the soft drinks while people between 12- 30 year prefer

cola drinks and rest people who comes in between 30 -50 year have

common.


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QUESTIONNAIRE

Dear sir/ madam,

We are the student of SIEM institute of management and technology Ahmedabad

conducting a market research on Comparative study of customer satisfaction toward

soft drinks with special reference to Pepsi and coca-cola. We request you to fill this

questionnaire and we will collect this data only for education purpose

Q1. NAME: ..

Q2.GENDER - MALE FEMALE

Q3.OCCUPATION -

PROFESSIONAL

BUSINESSMAN

SERVICE

STUDENT

HOUSEWIFE

ANY OTHER

Q4. AGE :

20-25 25-35

35-45 ABOVE 50

Q5. Do you take any soft drink?

a) no

b) yes

Q6. Do you take any soft drink regularly or occasionally?

a) regularly

b) occasionally


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Q13. If orange which particular brand you like?

a) Miranda

b) Fanta

Q14. If lemon which particular brand you like?

a) Dew c) limca

b) Miranda d) 7 up

Q15. Since how much time you are using your brand?

a) 1-6 month c) 1-2 year

b) 6-12-month d) more than 2 year

Q16. Advertisement of which cola drink you remember the most?

a) Coke c) Pepsi

c) 7 up d) spirit

e) fanta f) thumps up

Q17. If your desired brand of cold drink is not available at particular shop then

a) Take any other brand b) visit next shop

c) Suggest to have that brand d) dont take brand

Q18. Do you have any suggestions.


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BIBLIOGRAPHY

Books:

Philip Kotler Marketing Management, 11th

Edition, PearsonEducation page no. 168 to 177

Cooper & Schindler, Business Research Methodology, 6 th edition,

Tata McGraw hill publication page no 131 to 135

Web Sites:

www.google.com

www.Businesstandard.com

www.Globaldrinks.com

Magazines:

Indian Journal of Marketing, May 2010, page no3 to 9, 17.

Business World, July 2009, page 28-32.

News Paper:

Business Standard , Jan 2012.

Financial Express, August 2012.
http://www.google.com/http://www.google.com/http://www.businesstandard.com/http://www.businesstandard.com/http://www.globaldrinks.com/http://www.globaldrinks.com/http://www.globaldrinks.com/http://www.businesstandard.com/http://www.google.com/

Sachin Report 4

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