study of consumer behavior towards pepsi and coca cola

7/24/2019 study of consumer behavior towards pepsi and coca cola

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CHAPTER 1

INTRODUCTION


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1.1 INTRODUCTION:

Meaning of Consumer Buying bea!iour:

Consumer buying behaviour is the sum total of a consumer's attitudes, preferences,

intentions, and decisions regarding the consumer's behaviour in the marketplace when

purchasing a product or service. The study of consumer behaviour draws upon social science

disciplines of anthropology, psychology, sociology, and economics.

Abou" Pe#siCo

PepsiCo products are enjoyed by consumers one billion times a day in more than 2countries and territories around the world. PepsiCo generated more than !"" billion in net

revenue in 2#$, driven by a complementary food and beverage portfolio that includes %rito&

ay, (atorade, Pepsi&Cola, )uaker and Tropicana. PepsiCo*s product portfolio includes a

wide range of enjoyable foods and beverages, including 22 brands that generate more than !#

billion each in estimated annual retail sales.

+t the heart of PepsiCo is Performance with Purpose our goal to deliver top&tier financial

performance while creating sustainable growth and shareholder value. n practice,

Performance with Purpose means providing a wide range of foods and beverages from treats

to healthy eats- finding innovative ways to minimie our impact on the environment and

reduce our operating costs- providing a safe and inclusive workplace for our employees

globally- and respecting, supporting and investing in the local communities where we

operate.

$ea%ersi# "roug Performan&e 'i" Pur#ose:

PepsiCo entered ndia in #/0/ and in a short period, has grown into one of the largest 1C

food and beverage businesses in the country. PepsiCo*s growth in ndia has been guided by

3Performance with Purpose4, its goal to deliver top&tier financial performance while creating

sustainable growth and shareholder value. n practice, Performance with Purpose means

providing a wide range of foods and beverages from treats to healthy eats- finding innovative

ways to minimie our impact on the environment and lower our costs through energy and

water conservation, as well as reduced use of packaging material- providing a safe and


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inclusive workplace for our employees globally- and respecting, supporting and investing in

the local communities where we operate.

$arge in!es"or in In%ia 'i" s"rong bran%s:

PepsiCo has been consistently investing in ndia, in the areas of product innovation,

increasing manufacturing capacity, ramping up market infrastructure, strengthening supply

chain and e5panding company*s agriculture programme. The company has built an e5pansive

beverage and snack food business supported by 67 beverage plants and 6 food plants. n two

decades, the company has been able to organically grow eight brands each of which generate

8s. # crores or more in estimated annual retail sales and are household names, trusted

across the country.

A gro'ing #or"fo(io of en)oyab(e an% 'o(esome sna&*s an% be!erages:

PepsiCo ndia*s diverse portfolio reflects its commitment to nourish consumers with a diverse

range of fun and healthier products and includes iconic brands like Pepsi, ay*s, 9urkure,

Tropicana, (atorade and )uaker. n addition to the recently launched ay*s 1a55, 7:P

8evive and Tropicana ;lice +lphonso, the portfolio includes several healthier treats like

)uaker percent of these are

small and marginal farmers with a land holding of one acre or less. PepsiCo provides 6"&

degree support to the farmer through assured buy back of their produce at pre&agreed prices,

?uality seeds, e5tension services, disease control packages, bank loans, weather insurance,

and the latest technological practices. The association with PepsiCo ndia has not only raised

the incomes of small and marginal farmers, but also their social standing.


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/(oba( (ea%er in 'a"er &onser!a"ion:

n 2/, PepsiCo ndia achieved a significant milestone, by becoming the first business to

achieve @Positive =ater Aalance* in the beverage world, and has been =ater Positive since

then. Through 2#6, the company saved more that it consumed in its manufacturing

operations. The company made this possible through innovative irrigation practices like

direct seeding, community water recharging initiatives, and by reducing the consumption of

water in its manufacturing facilities. PepsiCo is lauded for its efforts for water conservation

and has received numerous awards such as C ational award for water management, =ater

Bigest award for water practices and (olden Peacock award for water conservation amongst

others.

Care for "e en!ironmen":

PepsiCo ndia is now focused on reducing its carbon footprint. 1ore than $ per cent of its

energy is today generated from renewable sources such as bio mass and rice husk boilers and

wind turbines. nitiatives such as reduction in use of chemicals, eco&friendly packaging

initiatives and efficient waste management help reduce load on the environment. PepsiCo in

partnership with the (< 5nora and local municipalities has also been working on a uni?ue

waste collection and treatment program called @=aste&to&=ealth*. The award winningprogramme has positively impacted more than >, , people.

E0em#(ary em#(oymen" #ra&"i&es:

PepsiCo ndia provides direct and indirect employment to almost 2, , people. The

company believes in providing employment and growth opportunities to local talent. ts@College of eadership*, ensures early identification of talent, and employees* focused


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development through critical e5periences. PepsiCo firmly believes that encouraging diversity

means encouraging policies and systems that respect people*s special needs. ot only does

PepsiCo have a vibrant and diverse workforce, it takes the utmost care to make dynamic

business leaders of its employees and foster their career and personal growth through

differentiated e5periences and a robust leadership development model.

Abou" Co&aCo(a:

Coca&Cola, the product that has given the world its best&known taste was born in +tlanta,

(eorgia, on 1ay 0, #00". Coca&Cola Company is the world*s leading manufacturer, marketer

and distributor of non&alcoholic beverage concentrates and syrups, used to produce nearly

$ beverage brands. t sells beverage concentrates and syrups to bottling and canning

operators, distributors, fountain retailers and fountain wholesalers. The Company*s beverage

products comprises of bottled and canned soft drinks as well as concentrates, syrups and not&

ready&to&drink powder products. n addition to this, it also produces and markets sports

drinks, tea and coffee. The Coca& Cola Company began building its global network in the

#/2s. ow operating in more than 2 countries and producing nearly $ brands, the Coca&

Cola system has successfully applied a simple formula on a global scaleD 3Provide a moment

of refreshment for a small amount of money& a billion times a day.4

The Coca&Cola Company and its network of bottlers comprise the most sophisticated and

pervasive production and distribution system in the world. 1ore than anything, that system is

dedicated to people working long and hard to sell the products manufactured by the

Company. This uni?ue worldwide system has made The Coca&Cola Company the world*s

premier soft&drink enterprise. %rom Aoston to Aeijing, from 1ontreal to 1oscow, Coca&Cola,

more than any other consumer product, has brought pleasure to thirsty consumers around the

globe. %or more than ##> years, Coca&Cola has created a special moment of pleasure for

hundreds of millions of people every day.

The Company aims at increasing shareowner value over time. t accomplishes this by

working with its business partners to deliver satisfaction and value to consumers through a

worldwide system of superior brands and services, thus increasing brand e?uity on a global


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basis. They aim at managing their business well with people who are strongly committed to

the Company values and culture and providing an appropriately controlled environment, to

meet business goals and objectives. The associates of this Company jointly take

responsibility to ensure compliance with the framework of policies and protect the

Company*s assets and resources whilst limiting business risks.

CON2UMER PRE3ERENCE2:

The consumer market amounts to a total of ".6 billion people, and thus there is great demand

for an enormous variety of goods and services, especially as consumers differ from one

another in that of age, gender, income, education level, and tastes. 1oreover, the relationships

between different consumers, as well as their contact with other elements of the world

surroundings, affect their choice of products, services, and companies.

The reason why consumers buy what they do is often deeply rooted in their minds,

conse?uently consumers do not truly know what affects their purchases as 3ninety&five

percent of the thought, emotion, and learning Ethat drive our purchasesF occur in the

unconscious mind& that is without our awareness. Consumers* purchase process is affected by

a number of different factors, some of which marketers cannot control, such as cultural,

social, personal, and psychological factors.

CU$TURA$ 3ACTOR2:

Culture is 3the set of basic values, perceptions, wants and behaviors learned by a member of

society from family and other important institutions4, and is the primary reason behind a


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person*s wants and behavior. +lthough different societal groups have their own culture that

affects consumers* buying behavior, the e5tent to which it influences the behavior might vary

from country to country. ach cultural group can be divided into groups consisting of people

with common life e5periences and situations, also known as subcultures, such as nationality,

racial groups, religion, and geographical areas. The third cultural factor is social class, which

is constituted upon among other variablesD occupation, income, education, and wealth.

2OCIA$ 3ACTOR2:

The second classification of factors affecting consumer behavior is social grouping, which is

composed of small groups, social roles and status, and family that affect all individuals to

some e5tent. ;ome of these groups have a direct influence on a person, i.e. membership

groups, groups that a person can belong to, and reference groups which 3serve as direct Gface&

to&faceH or indirect points of comparison or reference in forming a person*s attitudes or

beliefs4. Iowever, some people are affected by groups in which they do not belong to- these

reference groups include aspirational groups, groups that a person desires to belong to and a

fan*s admiration for an idol, etc. %inally, a wife, husband or a child have strong influences on

a consumer and thus the family is the most vital consumer buying organiation in society.

PER2ONA$ 3ACTOR2:

Consumers* personal characteristics, like for instance age and life&cycle stage, occupation,

economic situation, lifestyle, as well as personality and self&concept influence consumers*

buying behavior. 1oreover, depending on a person*s occupation and financial situation, as

well as the stage in life a person is in, hisJher demands for products shift. + person*s lifestyle

forms hisJher world and the way heJshe decides to act, thus a person*s activities, interests, and

opinions constitute their lifestyle, as well as affecting the choice of products.

1oreover, all people are individual- hence have a uni?ue personality of different

characteristics, which is often portrayed with traits, such as self&confidence, dominance,

sociability, autonomy, defensiveness, adaptability, and aggressiveness.

P24CHO$O/ICA$ 3ACTOR2:

%our objects constitute this group of factors, namely motivation, perception, learning, and

beliefs K attitudes. =hen a person is motivated, heJshe acts accordingly and the actions taken


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are affected by the person*s perception of the situation. Perception is the individual selection,

organiation and interpretation of the information which flows through people*s senses, and

conse?uently a meaningful picture of the world is formed. =hen people e5perience new

things, changes take place in their behavior, i.e. they learn new things when they take action.

+s a result, beliefs and attitudes are ac?uired and hence affect the buying behavior.

CHAPTER +

RE2EACH METHODO$O/4


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A. RE2EARCH METHODO$O/4:

1ethodology is the systematic analysis of the methods applied to a field of study. t

comprises the theoretical analysis of the body of methods and principles associated with the

branch of knowledge.

+ methodology does not set out to provide solutions. Therefore, it is not the same thing

methods. nstead, it offers the theoretical base for understanding which method, set of

methods or so called 3best practices4 can be applied to specific case.

1erriam&=ebster dictionary provide two definition on research methodology are as followD

1.5"e ana(ysis of "e #rin&i#(es of me"o%s- ru(e- an% #os"u(a"es em#(oye% by a

%is&i#(ine5

+.5"e sys"ema"i& s"u%y of- me"o%s "a" are- &an be- or a!e been a##(ie% 'i"in a

%is&i#(ine5

3EATURE2 O3 RE2EACH METHODO$O/4:

;ystematic process

Purpose of research methodology

8eliance on empirical evidence

Commitment to objectivity

Lerifiability

thical neutrality

Bevelopment of principles and theories 1ultipurpose activity

:se of induction and deduction methods

B. T4PE O3 THE RE2EARCH:

The research activity can be classified into different categories. ;ome of the main types of

research are as followD


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The secondary data are those which have already been collected by someone else and which

have been passed through the statical process

+nd have used the both the methods to collect the data majority of the data is collected from

primary source. ;econdary data collected from coca cola and Pepsi official websites.

3. 2AMP$E 2I8E:

;ampling sie refers to a part of the universe is selected for obtaining information. Therefore,

sampling offers several advantages to the researcher.

The sample for this study consisted of 6 respondents. The selected respondents in the agegroup of 2>&>> years belonged to varied employment, gender and income groups. Convenient

sampling techni?ue was applied in selecting respondents as sample.

/. $IMITATION O3 2TUD4:

Bue to the time constraint and the limitation in the number of people who conduct the field

sampling, this research study is limiting field sampling to three locations only.

H. RE7IE9 O3 $ITERATURE:

B(a""berg- Pea&o&*- an% 2en 1;


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Country of the origin of food and consumer preference in segment of university student*s

consumers prefer the attributes like freshness, flavor and also the price. Consumer prefers

fruit juices because of their flavor and freshness.

/u#"a gu#"a +>?:

%ruit drinksD how healthy and safe discussed that fruit drinks are popularly used in most

urban households today markets are flooded with a large variety of juices e.g.- mango, apple,

guava, litchi. The main reason for increased consumption is changing lifestyles K rising level

of health consciousness among consumers and parents. They believe that these drinks provide

superior nutrition because of their status K high beverage cost.

/u#"a #aru( +?:

;tudied the coke K Pepsi*s rural drive to push sales soft drink giants Coca&Cola K Pepsi have

signed on thousands of new retailers in a drive into rural ndia that has pushed up sales

steeply. Coca&Cola has made its beverages available in $, additional villages in the last 6

years.

6yo"i * arun ++?:

;tudies the Coca&Cola ndia*s marketing plan for the summer peak sales season is vested with

a rural thrust K rides on the back of its newly launched 2&ml bottle, priced between 8s. > to

8s " across the country. =hile the soft drinks sales showed flat growth last year, sales in that

year are up by 0M for the company.


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CHAPTER

ANA$42E2 AND INTERPRETATION

#. Bo you drink cola&soft drinksN

O#"ion Number of res#on%en" of res#onses

O; 27 /

o 6 #


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90%

10%

yes

no

In"er#re"a"ion:

+fter analysis concluded that majority of the people that means /M of the respondent are

drinking carbonate drinks in their daily life remaining #M of the respondent are not drinking

carbonate drinks.

2. Iow many glasses do you drink per weekN


# " 2

#&6 #$ $7

$&" / 6

7&/ # 6

Q #


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1 1-3 4-6 7-9 100%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

In"er#re"a"ion:

+fter the analysis conclude that majority of the respondent drink 6&> glasses of

carbonate drinks in a week. +nd 6M of the respondent drinks $&" glasses of carbonate

drinks in a week, 2M respondent drinks once in a week, only 6M of the respondent

drinks 7&/ glasses, and M in # glasses.

6. =hat cola&brand do you drink the mostN


Coca cola 0 27

Pepsi #/ "6


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coca cola; 27%

pepsi; 63%

other; 10%

coca cola pepsi other

In"er#re"a"ion:

+fter analysis find that majority of the respondent prefer Pepsi as a brand mostly for

drinking cola that means "6M and 27M of the respondent prefer coca cola and remaining

#M of them prefer other brand for drinking cola.

$. =hich brand do you preferN


Coca cola 7 26

Pepsi #0 "

neither > #7


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23%

60%

17%

coca cola pepsi neither

In"er#re"a"ion:

+fter analysis conclude that many of the respondent prefer Pepsi as a best brand and

reaming 26M of respondent prefer coca cola as a brand and #7M of the respondent prefer

both as a brand. %rom the above table and graph we can see that Pepsi is the most preferring

brand for carbonate drinks.

>. =hat is your view on Coca&Cola as a brandN


Lery good $ #6

(ood #/ "6

neither $ #$

bad 6 #

Lery bad


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13%

63%

14%

10%

very good good neither ad very ad

In"er#re"a"ion:

+fter analysis conclude that majority of the respondent that means "6M of them feel coca

cola brand as good and #M of them feel coca cola as brand is bad.

". =hat is your view on Pepsi as a brandN


Lery good $ #6(ood 2# "6

neither $ #$

bad # #

Lery bad


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13%

70%

13%

4%


In"er#re"a"ion:

%rom the above table and graph we can see that 7M of the respondent feel that Pepsi as a

good brand and #6M of the feel neither good nor bad and #6M of them feel it*s a very good as

a brand.

7. Bo you know what Coca&Cola advertisesN


O; 0 27

o 22 76


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27%

73%

yes no

In"er#re"a"ion:

+fter analysis conclude that 76M of the respondent are not aware about the coca cola

advertisement and remaining 27M of the respondent are aware about coca cola advertisement.

t indicate that majority of them are not aware about the coca cola advertisement that means

the company have to improve their advertising.

0. Bo you know what Pepsi advertisesN


O; 22 76

o 0 27


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73%

27%

yes no

In"er#re"a"ion:

%rom the above table and graph we can see that 76M of the respondent are aware about the

Pepsi advertisement and remaining 27M of them are not. t indicates that the advertisement of

the Pepsi is more popular than the coca cola advertisement.

/. Iow much influence does the advertisement have on your choice of cola&productN


Lery much # 6

+ lot 7 26

either $ #6

ittle ## 67

Lery little 7 2$


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3%

23%

13%

37%

24%

very !"ch a lot neither little very little

In"er#re"a"ion:

+fter analysis conclude that 67> of the respondent feel that advertisement about the cola

product affect them little and 26M of them feel it affect them a lot.

#. =hat do you think about the fact that companies use celebrities in their advertising

campaignsN


Lery good $ #$

(od 22 76

either 6 #

Aad

Lery bad # 6


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14%

73%

10%

3%


In"er#re"a"ion:

%rom the above table and graph we can see that majority of the respondent 76> are think

good about the companies using celebrities in their advertisement and #$> of them feel it very

good.

##. Iow does this affect your view of the brandN


Positively 2" 07

negatively $ #6


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positively

negatively

In"er#re"a"ion:

+fter analysis conclude that 07M of the respondent are feeling positively about celebrities in

the advertisement of the cola brand and remaining #6M of them are feeling negatively about

the same.

#2. =ould an advertisement with your idol affect your choice of cola&productN


Positively 2 "7

negatively # 66


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positively

negatively

In"er#re"a"ion:

%rom the above graph and table we can see that advertisement with the idol affect "7M of the

respondent and 66M of the respondent feel it does not affect the choice of cola brand.

#6. =hich logo do you preferN


#0 "

#2 $


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60%

40%

In"er#re"a"ion:

+fter analysis conclude that "M of the respondent prefer Pepsi logo and $M of them

prefer coca cola logo.

#$. =hich slogan appeals to you the mostN


Thanda matlab coca

cola

#6 $6

7


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60%

40%

thanda !atla coca cola oh yes ahi

In"er#re"a"ion:

%rom the above table and graph we can see that clearly slogan of Pepsi appeal the customer

most than the coca cola slogan.

#>. Bo you know what Coca&Cola sponsorsN


Oes 6 #

no


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100%

yes no

In"er#re"a"ion:

+fter analysis conclude that #M of the respondent are not aware about what the coca cola

company sponsors.

#". Bo you know what Pepsi sponsorsN


Oes $ #6

no 2" 07


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13%

#7%

yes no

In"er#re"a"ion:

+fter analysis conclude that 07M of the respondent are not aware about what the Pepsi

company sponsors and the remaining #6M of them aware about the same.


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CHAPTER ,

2UMMAR4- 3INDIN/- RECOMMENDATION

A. 2UMMAR4:

The soft drinks and beverages can be said to be as old as a civiliation of man. ;oft drinks are

known as refresher and man need to refresh himself in the time of his thirst, fatigue and

dullness.

The conventional ndian soft drink pattern includes lemon juice, butter milk, lassi etc. with

entry of Aritish ndia got westernied and synthetic soft drinks which were part of the

dominant life style of the western world came floating to ndia.


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8esearch is done through personal survey with ?uestionnaire for customers and found that

Pepsi has good market potential as compared to coca cola and consumer prefer this brand

because of taste and refreshing and they e5pect some more improved advertisement so that it

can compete more with Pepsi.

B. 3INDIN/:

1ajority of the consumers prefer Pepsi due to its Arand mage, Taste K

)uality.

1ost of the consumers of a Coca&Cola brand are not so satisfied and

consumers of Pepsi are satisfied with the offers provided by the company.

%rom the survey it has been observed that advertisements have shown a

greater impact on purchase decision.

Pepsi has got a greater market share compared to the coca cola because of its

product line K product range.


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%rom the survey observe that #M of the respondent are not aware about

what the coca cola sponsor.

1y hypothesis is proven because majority of the respondent prefer Pepsi thencoca cola and the advertisement of Pepsi is more attractive to the customer.

C. RECOMMENDATION:

The Pepsi Company should maintain its consistency and should introduce new models

according to the changing needs in the market.

Aoth companies should concentrate on consumer offers to retain the e5isting

consumers as well as to attract the new customers.

The companies have to pay a greater attention on its distribution activities to satisfy

the needs of all types of consumers.

The companies should redesign the packing models of the products to meet the

e5pectations of consumers.

The companies should come up with timely and updated advertisements, which

include sponsorships to different social responsibility campaigns


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$o in"ence the cons"!ers "ying ehavior& oth the co!panies

sho"ld !aintain good '"ality& availaility and create a(areness;

rand i!age to(ards their prod"cts in the !ind set o) cons"!ers&

ANNEURE


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BIB$IO/RAPH4:

httpDJJwww.pepsicoindia.co.inJmediaJfact&sheet.html

httpDJJgroovyganges.orgJ27J7Jhistory&of&coca&cola&in&indiaJ

httpDJJwww.businessdictionary.comJdefinitionJresearch&methodology.html

www.cocacolaindian.com
http://www.pepsicoindia.co.in/media/fact-sheet.htmlhttp://groovyganges.org/2007/07/history-of-coca-cola-in-india/http://www.businessdictionary.com/definition/research-methodology.htmlhttp://www.cocacolaindian.com/http://groovyganges.org/2007/07/history-of-coca-cola-in-india/http://www.businessdictionary.com/definition/research-methodology.htmlhttp://www.cocacolaindian.com/http://www.pepsicoindia.co.in/media/fact-sheet.html


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NAME:

A/E: MOBI$E NO:

#. Bo you drink cola&soft drinksN

Oes o

2. Iow many glasses do you drink per weekN

# #&6 $&" 7&/ Q #

6. =hat cola&brand do you drink the mostN

Coca&Cola Pepsi . =hat is your view on Coca&Cola as a brandN

Lery good (ood either Aad Lery bad

". =hat is your view on Pepsi as a brandN


7. Bo you know what Coca&Cola advertisesN

Oes o

0. Bo you know what Pepsi advertisesN


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Oes o

/. Iow much influence does the advertisement have on your choice of cola&productN

Lery much + lot either ittle Lery little

#. =hat do you think about the fact that companies use celebrities in their advertising

campaignsN


##. Iow does this affect your view of the brandN

Positively egatively

#2. =ould an advertisement with your idol affect your choice of cola&productN

Positively egatively

#6. =hich logo do you preferN

#$. =hich slogan appeals to you the mostN Thanda matalab Coca&ColaS . Bo you know what Coca&Cola sponsorsN

OesD RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR o

#". Bo you know what Pepsi sponsorsN

OesD RRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR o


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study of consumer behavior towards pepsi and coca cola

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