![final report onComparative study on consumption patterns of Soft drinks and Fruit juices In partial fulfillment of the requirement On the degree of Bachelor of Business Administration Session (2008-2011) SUBMITTED BY: NISHU SHARMA<br /> <br /> Chapter-1<br /> Introduction<br />EXECUTIVE SUMMARY <br />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. <br />Market Research is based on some underlying parameters like: <br />• Changing consumption pattern <br />• Health factor <br />• Status consciousness <br />• Varying lifestyle <br />The basic subject matter of the research, comparative analysis of Soft Drinks and <br />Juices are 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. <br />OVERVIEW OF THE INDUSTRY <br />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. <br />“Today’s consumers are concerned with overall health and wellness. As a result, there is significant impact on food and beverage purchases. Many studies have shown that consumers are as concerned with good health as they are about maintaining a high quality of life.” <br />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. <br />INDIAN BEVERAGE MARKET <br />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 icecreams 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/sorbitol 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 tones 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 a 65 million crates ($50 million) industry. On an average, the monthly consumption is estimated at 4.9 million crates, which increases to 5.2 million during peak season. <br />RECENT ISSUES <br />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 crore, 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 forth largest energy drink inthe 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 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 Brasil 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.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 Huiyuan 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 homegrown 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. Huiyuan's founders and major shareholders already had endorsed the sale. If Coke were to take over Huiyuan, it will dominate the soft drinks market in China, which not only hurts consumers, but also other sector participants. Huiyuan 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. <br />PepsiCo launches 'Nimbooz,' packaged lemon juice with no fizz and Artificial flavours PepsiCo India has launched its packaged nimbu paani, Nimbooz, under its 7Up brand. The home-made nimbu paani or lime juice has been specially created to suit Indian tastesThe 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, Nimbooz, is specially developed to suit Indian tastes and preferences. quot;
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. <br />PepsiCo has drawn up an intensive consumer activation campaign to market Nimbooz. The 360 degree marketing communication plan will revolve around building awareness through multi-city launches and road shows, 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. 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. quot;
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,quot;
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 quot;
Fantaquot;
brand of the company. quot;
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 Cola India's market leadership in the fruit-flavoured sparkling drink segment,quot;
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. <br />STUDY OF GROWTH OF SOFT DRINK MARKET <br />SOFT DRINKS <br />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. <br />MARKET <br />• Cola products account for nearly 61-62% of the total soft drinks market. <br />• Two global majors’ Pepsi and coke dominate the soft drink market. <br />• The market is worth around Rs.5000 crores with growth rate of around 10-15%. <br />• The annual per capita consumption in India is only about 6 bottles vis- a- Vis 340 <br />bottles in the U.S. <br />• The production as soft drinks has increased from 5670 million bottles in 1998-99 <br />to 6230 million bottles in 1999-2000 industry source. <br />• Growth market this year is expected to be 10-15% in value terms and 20-22% in <br />volume terms. <br />MAJOR PLAYERS IN THE SOFT DRINKS SEGMENT <br />COCA COLA:<br />1) thanda matlab coca cola!!! <br />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. <br />In 2002, coca cola launched the campaign,”Thanda Matlab coca cola”. in 2003,coke <br />was available for just rs,5 crores in the country<br />2)FANTA: GHOONTH BHAR SHARARAT KAR LEY!!! <br />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. <br />3)LIMCA: LIME AND LEMONI!!! <br />Drink that can cast a tangy refreshing spell on anyone, anywhere. Born in 1971, Limca <br />has been the original thirst choice, of millions of consumers for over three decades. <br />The brand has been displaying healthy volume growing year on year and limca <br />continues to be leading flavoring soft drinks in the country. <br />Dive into the zingy refreshment of limca and walk away a new person<br />4)SPRITE: SPRITE BHUJAYE PYAAS BAKI SAB BAKWAAS!!! <br />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. <br />5) THUMS UP: TASTE THE THUNDER!!! <br />Strong cola taste, exciting personality. <br />Thums up is a leading carbonated soft drink and most trusted brand in India. Originally <br />Introduced in 1977, thums up was acquired by the coca cola company in 1993. <br />Thums up, is, known for strong, fizzy taste and its confident, mature and uniquely <br />Masculine attitude. This brand clearly seeks to separate the man from the boys<br />6) MAAZA: YAARI DOSTI TAAZA MAAZA!!! <br />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. <br />“Taaza Mango, Maaza mango, Botal mei aam, maaza hai naam”.consumers regard <br />maaza as 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”. <br />7)PEPSI: YEH DIL MAANGE MORE!!! <br />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. <br />The brand was trademarked on June 16, 1903.There have been many Pepsi variants <br />produced over the years. <br />• Diet Pepsi <br />• Crystal Pepsi <br />• Pepsi twist <br />• Pepsi max <br />• Pepsi samba <br />• Pepsi blue <br />• Pepsi gold <br />• Pepsi holiday spice <br />• Pepsi jazz <br />• Pepsi x(available in Finland & brazil) <br />• Pepsi next(available in Japan & south Korea<br />STUDY OF GROWTH OF FRUIT DRINK MARKET <br />FRUIT JUICES <br />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. <br />MARKET <br />• The organized fruit beverage market is estimated at Rs.500 crores market. <br />(Nectars, drinks and juices combined). <br />• The market has grown at a 20% to 25% rate. <br />• 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. <br />• In –home consumption of juices has gone up from 30%, three years back to <br />80%today. <br />• Mango based drinks account for two thirds of fruit drinks industry<br />MAJOR PLAYERS IN THE FRUIT DRINK SEGMENT <br />1)DABUR REAL <br />Dabur’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. <br />Real, with market share of 57% comes in nine flavors: <br />• Orange <br />• Mango <br />• Pineapple <br />• Mix fruit <br />• Grape <br />• Guava <br />• Litchi <br />• Tomato <br />• Cranberry <br />Real Active is 100%fruit juice with no added sugar and is available in following variants: <br />• Orange <br />• Apple <br />• Orange- carrot <br />2)GODREJ- JUMPIN & “xs” <br />The food division of godrej industry produces and market fruit drinks, fruit nectar and <br />sofit soymilk. Godrej’s brand JUMPIN comes in the following flavor: <br />• Mango <br />• Pineapple <br />• Apple <br />• Litchi <br />• Orange <br />3)PEPSI’S TROPICANA <br />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: <br />• Orange <br />• Apple <br />• Grape <br />• Cranberry <br />4)LEH BERRY <br />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 flavors: <br />• Pineapple <br />• Apple <br />• Mixed fruit <br />• Orange <br />• Blackcurrant <br />• Mango <br />• Guava <br />5)PARLE’S FROOTI and APPY <br />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<br />PURPOSE OF THE STUDY <br />The main aim of this research study is to analyze the preference of people (of different <br />age groups) on consumption patterns of Soft Drinks and Fruit Juices. <br />OBJECTIVE OF THE STUDY <br />• To study the preferences of the people for soft drinks and fruit juices. <br />• To find out the factor(s) that influences the consumer’s consumption of soft drinks <br />and fruit juices.<br /> SCOPE OF THE STUDY <br />• This study is confined to the Ludhiana city covering areas of <br /> Jeevan preet nagar,Rajguru nagar and srabha nagar. <br />• Seasonal drinks are not considered in the study. <br />• We are considering only canned juices. <br />• We are not considering water & alcoholic drinks<br />Review of literature<br />1) A literature review is a body of text that aims to review the critical points of current knowledge . Literature review are secondary sources and as such , do not report any new experimental work.<br />2) Kretter,Kadekova et al (2010) “ country of the origin of food and consumer preference in segment of university students” consumers prefer the attributes like freshness, flavour and also the price. Consumer prefers fruit juices because of their flavour and freshness.<br />3) Charles (2009) “ market news service: fruit juices report” in his studies discussed that the fruit juice market is presently relatively quiet, provided one ignores the continued collapse in the price of FCOJ.<br />4) Bharadwaj (2008) “ consumer behaviour in health drink” discussed that consumer behaviour is divided into three sub categories,consumption behaviour,purchase behaviour and attitude perception. The consumer behaviour differ with age and the life style. For kids health drink is a supplement with added calciums,minerals and vitamins.<br />5) Gupta & gupta (2008) “ fruit drinks: how healthy and safe” discussed that fruit drinks are popularly used in most urban households todaymarkets are flooded with a large variety of juices eg; mango,apple.guava,litchi.the main reason for increased consumption is changing lifestyles & rising level of health consciousness among consumers and parents. They believe that these drinks provide superior nutrition because of their status & high beverage cost.<br />6) Gupta parul (2003),studied the coke & pepsi’s rural drive to push sales.soft drink giants coca-cola & pepsi have signed on thousands of new retailers in a drive into rural india that has pushed up sales steeply. Coca-cola has made its beverages available in 40,000 additional villages in the last 3 years.<br />7) Jyoti k arun (2002),studies the coca-cola india’s marketing plan for the summer peak sales season is vested with a rural thrust & rides on the back of its newly launched 200-ml bottle, priced between Rs. 5 to Rs 6 across the country. While the soft drinks sales showed flat growth last year, sales in the that year are up by 80% for the company.<br /> CHAPTER -2 <br /> RESEARCH <br /> METHODOLOGY <br />RESEARCH METHODOLOGY<br />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. <br />According to Clifford Woody: <br />“Research Methodology comprises of defining & redefining problems, collecting, organizing &evaluating data, making deductions &researching to conclusions.”.<br />RESEARCH DESIGN<br />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. <br />On the basis of fundamental objectives of the research we can classify research design into <br />1)EXPLORATORY 2)CONCLUSIVE RESEARCH<br />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. <br />Conclusive research is designed to assist the decision maker in determining <br />evaluating and selecting the best course of action to take in a given situation. <br />Conclusive research can be further divided into two types:- <br />• Descriptive <br />• Experimental <br />The research design used in this project is a DESCRIPTIVE DESIGN. <br />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. <br /> <br />SAMPLING PLAN<br />1) SAMPLING TECHNIQUE USED: <br />This research has used convenience sampling technique. <br />,[object Object],2) SELECTION OF SAMPLE SIZE: 100<br />For the study, a sample size of 100 has been taken into consideration. <br />3) POPULATION: Concumers of soft drink and fruit juices<br />4) SAMLING FRAME: Ludhiana<br /> <br />DATA COLLECTION<br />As it is already to be known that there are two types of Data Collection methods which are as following:-Primary Research & Secondary Research.<br />Primary Research<br />Primary research (also called field research) involves the collection of data that does not already exist. This can be through numerous forms, including Questionnaires and telephone interviews amongst others.<br />Secondary Research<br />Secondary research ( also called desk research) involves the summary, collation and/or synthesis of existing research rather than primary research, where data is collected from, for example, research subjects or experiments. <br />,[object Object]](https://image.slidesharecdn.com/researchproject-110913122229-phpapp01/85/Research-project-1-320.jpg)
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- 2. The Questionnaires are being prepared and filled through the selected sample size from the selected field.
- 5. Data Analysis & Interpretation:
- 6. It is clear that 70% people consume soft drink when they feel thirsty, 20% people consume soft drink during parties and 10% people consume soft drink without any reason.
- 8. Data Analysis & Interpretation: It is concluded that 70% people consume fruit juice when they feel thirsty, 20% consume fruit juice without any reason and 10% people consume fruit juice during parties.
- 10. According to the survey 60% people of Ludhiana prefer Tropicana as a healthy fruit juice.
- 11. 90% people are affected by advertisements.
- 12. Most preferred brand of soft drink is coke and least preferred brand is fanta.
- 13. It is clear that 50% people like mix fruit juice.
- 14. Most of the Ludhiana people prefer fruit juice and soft drink as a aid to put of thirst.
- 15. According to the survey 40% people of Ludhiana consider fruit juice as a healthy with preservatives drink.
- 16. Most of the people consume soft drink on daily basis.
- 18. Soft drink b) fruit juice
- 19. What is frequency of consumption of your preferred drink in a week.
- 20. Fruit juiceSoft drinka) Daily b) 2-6 timesc)After week
- 22. On what occasions do you often consume the soft drink and fruit juice?
- 24. Fruit juiceSoft drinka) Feeling thirstyb) During partiesc) Without any reason
- 26. If any please specify .....................................................................
- 27. Rank the following characteristics of fruit juice and soft drink ,which induces you to buy soft drink and fruit juice.(give rank of 1 for most preferred and give rank of 5 for least preferred)
- 28. Soft drinkFruit juicea) Priceb) Quantityc) Tasted) Brand
- 29. How do you view canned juices as compared to fresh juices?( Please tick any1 option)
- 30. a) Equivalent to fresh juice b) Have artificial added flavour
- 32. c) Mix d) Litchi
- 36. b) Soft drink 1).............................
- 41. If any, please specify.............................................................................Personal Details:<br />Name ________________________<br />Age ________________________<br />Address ________________________<br />