33026505 Research Proposal for Soft Drinks 2 2

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EXECUTIVE SUMMARY

Soft Drinks were common preference among all the individuals. With the changinglifestyle and income levels, people are shifting their consumption patterns.

Market Research is based on CONSUMPTION PATTERNS parameters like:In consumption patterns, we want to highlight the factors which influence the consumer to buy soft drinks. Various factor which influence the consumption of beverages are1. Health drink2. Status symbol.3. Taste4. Variety5. Brand ambassador6. Advertising campaign.

The basic subject matter of the research, analysis of Soft Drinks is focused tostudy the mind/taste of different age group of people.The study starts with determining the major players in the soft drinks, 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.

CHAPTER - 1INTRODUCTION

BEVERAGE

What is beverage?

A drink, or beverage, is a liquid specifically prepared for human consumption. In addition to basic needs, beverages form part of the culture of human society.Or



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

Types of beverage

The various types of beverage are:• Alcoholic beverages• Non-Alcohol beverages• Soft drinks• Fruit juice• Hot beverages• Other

1. Alcoholic beveragesAn alcoholic beverage is a drink containing ethanol, commonly known as alcohol,although in chemistry the definition of an alcohol includes many other compounds. Alcoholic beverages, such as wine, beer, and liquor have been part of human cu

lture and development for 8,000 years.

2. Non-alcohol beverages

Non-alcoholic beverages are drinks that would normally contain alcohol, such asbeer and wine but are made with less than .5 percent alcohol by volume. The category includes drinks that have undergone an alcohol removal process such as non-alcoholic beers and de-alcohol zed wines.

Non-alcoholic variants:• Low alcohol beer• Non-alcoholic wine

• Sparkling cider

3. Soft drinksThe name "soft drink" specifies a lack of alcohol by way of contrast to the term"hard drink" and the term "drink", the latter of which is nominally neutral butoften carries connotations of alcoholic content. Beverages like colas, sparklin

g water, iced tea, lemonade, squash, and fruit are among the most common types of soft drinks, while hot chocolate, hot tea, coffee, milk, tap water, alcohol, and milkshakes do not fall into this classification. Many carbonated soft drinksare optionally available in versions sweetened with sugars or with non-caloric sweeteners.

4. Fruit juiceJuice is a liquid naturally contained in fruit or vegetable tissue. Juice is prepared by mechanically squeezing or macerating fresh fruits or vegetables withoutthe application of heat or solvents. For example, orange juice is the liquid ex

tract of the fruit of the orange tree. Juice may be prepared in the home from fresh fruits and vegetables using variety of hand or electric juicers. Many commercial juices are filtered to remove fiber or pulp, but high pulp fresh orange juice is a popular beverage. Juice may be marketed inconcentrate form, sometimes frozen, requiring the user to add water to reconstitute the liquid back to its "original state"

5. Hot beveragesHot beverages, including infusions. Sometimes drunk chilled. Coffee-based beverages



Cappuccino Coffee Espresso Café au lait Frappé Flavored coffees (mocha etc.) Latte

Hot chocolate Hot cider Mulled cider Tea-based beverages Flavored teas (chai etc.) Green tea Pearl milk tea Tea Herbal teas Yerba Mate Roasted grain beverages Sanka

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

• Soup• Yogurt STUDY OF GROWTH OF SOFT DRINK MARKET

SOFT DRINKSCarbonated drinks are dominated by artificial flavors based on cola, orange

and lime with Pepsi and coca-cola dominating the market. The entire part of thedrink is based on its artificial flavors and sweetening agents as no natural juice is used.

MARKET

• Cola products account for nearly 61-62% of the total soft drinks market.• Two global majors’ Pepsi and coke dominate the soft drink market.• NCAER survey says 91% of soft drink in the country is in the lower, lower middle and upper middle class people.• The market is worth around Rs.5000 crores with growth rate of around 10-15%.• The annual per capita consumption in India is only about 6 bottles vis-a- Vis 340 bottles in the U.S.• The production as soft drinks has increased from 5670 million bottles in1998-99 to 6230 million bottles in 1999-2000 industry source.

• Growth market this year is expected to be 10-15% in value terms and 20-22% in volume terms.

However, the market for carbonated drinks is stagnating and not growing as expected.

MAJOR PLAYERS IN SOFT DRINKS SEGMENT



COCA COLA: thanda matlab coca cola!!!

Coca cola has truly remarkable heritage. From a humble beginning in 1886 it has now become the flagship brand of largest manufacturer, distributor of nonalcoholic 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 theimagination of the nation, building strong association with cricket, the thrivi

ng cinema industry, music etc. coca cola has been very strongly associated withcricket, sponsoring the world cup in 1996.

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

FANTA : GHOONTH BHAR SHARARAT KAR LEY!!!

Fanta entered the Indian market in year 1996 under the coca cola brand .over the years, Fanta has occupied a strong market place and is identified as “the

fun catalyst”. Fanta stands for its vibrant color, tempting taste and tinglingbubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment.

LIMCA: LIME AND LEMONI!!!

Drink that can cast a tangy refreshing spell on anyone, anywhere. Born in 1971,Limca has been the original thirst choice, of millions of consumers for over th

ree decades.The brand has been displaying healthy volume growing year on year and limca continues to be leading flavoring soft drinks in the country.Dive into the zingy refreshment of limca and walk away a new person. SPRITE: SPRITE BHUJAYE PYAAS BAKI SAB BAKWAAS!!!

World wide sprite ranked as no.4 soft drink and is sold in more than 190 countries In India, sprite was launched in year 1999 and today it has grown to be one of the fastest growing soft drinks, leading clear lime category.

Today sprite is perceived as a youth icon. With strong appeal to youth sprite has stood for a straight forward and honest attitude. Its clear crisp hingtaste encourages today’s youth to trust their instincts, influence them to be true who t



hey are and to obey their thirst.

THUMS UP: TASTE THE THUNDER!!!

Strong cola taste, exciting personality.

Thums up is a leading carbonated soft drink and most trusted brand in India. Originally introduced in 1977, thums up was acquired by the coca cola company in 1993.Thums up, is, known for strong, fizzy taste and its confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the man from the boys.

PEPSI: YEH DIL MAANGE MORE!!!

Pepsi cola is a carbonated beverage that is produced and manufactured by Pepsi co. It is sold in stores, restaurants and from vending machines. The drink was first made in the 1890’s in North Carolina.The brand was trademarked on June 16, 1903.There have been many Pepsi variants produced over the years.

• Diet Pepsi• Crystal Pepsi• Pepsi twist• Pepsi max

• Pepsi samba• Pepsi blue• Pepsi gold• Pepsi holiday spice• Pepsi jazz• Pepsi x(available in Finland & brazil)• Pepsi next(available in Japan & south Korea)

CHAPTER - 2RESEARCH METHODOLOGY



METHODOLOGY

Every project work is based on certain methodology, which is a way to systematically solve the problem or attain its objectives. It is a very important guideline and lead to completion of any project work through observation, data collection and data analysis.

Accordingly, the methodology used in the project is as follows: -• Defining the objectives of the study• Framing of questionnaire keeping objectives in mind (considering the objectives)• Feedback from the respondents• Analysis of feedback

• Conclusion & findings

PURPOSE OF THE STUDYThe main aim of this research study is to analyze the preference of people (of different age groups) on consumption patterns of carbonated Soft Drinks.OBJECTIVE OF THE STUDY• To study the preferences of the people for soft drinks according to agegroup.• To find out the factors that influences the consumer’s consumption of soft drinks.• To determine which alternative people prefer other than soft drink.

SCOPE OF THE STUDY

• Seasonal drinks are not considered in the study.• We are not considering water & alcoholic drinks.REVIEW OF LITERATURETaste or health: A study on consumer acceptance of cola drinks

This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks. Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a briefquestionnaire on food habits. Data were analyzed using factor analysis. Resultsrevealed that purchase intent of cola drinks was strongly related to degree ofliking and to several key sensory attributes including taste, drinks flavor andgreasiness. These variables merged as the first factor in the analysis, sugges

ting that consumers perceive these characteristics as being most important in their choice of cola drinks. Factor 2 described a health dimension and was relatedto respondents

attitudest. Factor 3 comprised two remaining sensory attributes(color and crunchiness), which apparently were of minor importance to the respo

ndents. These data suggest that in spite of current concern about reducing dietary fat, health remains secondary to taste in the selection of cola drinks for consumers in this population.

Source-Beverly J. Tepper and Amy C. Trail Journal of Food Science and Technology, 15 September 1998



RESEARCH DESIGNA research design is a framework or blueprint for conducting the marketi

ng research project. It specifies the details of the procedures necessary for obtaining the information needed to structure and/or solve marketing research problem.The research design used in this project is a DESCRIPTIVE DESIGN.DESCRIPTIVE STUDY as the name implies is designed to describe something-for example the characteristics of users of a given product, the degree to which the product use the varies with income, age.SELECTION OF SAMPLE SIZE:For the study, a sample size of 120 has been taken into consideration.The aim was to collect 120 samples for the analysis. The samples should be such

that they are consumers of soft drinks. We also tried to get an adequate ratio of men and women in the samples. The main demographics targeted were the youngerage group as they are one who consumes more of soft drinks. Also we tried to focus more on the college going crowd and young professionals.Buyers who have been consuming soft drinks were better able to answer the questions regarding the influencing factors and the reasons for their consumption andpurchase.SOURCES OF DATA COLLECTION:PRIMARY DATA:

Questionnaire: Primary data was collected by preparing questionnaire and the people were requested to fill them.

DATA ANALYSISFor this project we will use correlation analysis (chi-square test) for data analysis. Correlation of the various variables was done with each other (for e.g. Age vs consumption, frequency vs quantity etc). This activity basically helped usin identifying the perception and connotations of people towards various soft d

rinks brands.



CHEPTER - 3DATA ANALYSIS & FINDINGS

OCCUPATION OF RESPONDENT vs OCCASION WHEN PEOPLE CONSUME SOFTDRINK CROSSTABULATION.Null hypothesis: There is no significant relationship between occupation and occasion.

Alternative hypothesis: There is significant relationship between occupation andoccasion.Level of significance: 0.05

occasion when people consume softdrink Totalfeel thirsty parties or celebration fast food or dinner

just like thatoccupation of respondent student Count 21 17 29 34101

Expected Count 19.4 19.4 26.9 35.4 101.0business Count 1 3 0 4 8

Expected Count 1.5 1.5 2.1 2.8 8.0service Count 1 3 3 4 11

Expected Count 2.1 2.1 2.9 3.9 11.0Total Count 23 23 32 42 120

Expected Count 23.0 23.0 32.0 42.0 120.0

Chi-Square Tests

Value df Asymp. Sig. (2-sided)Pearson Chi-Square 5.840(a) 6 .441Likelihood Ratio 7.733 6 .258Linear-by-Linear Association .249 1 .618N of Valid Cases 120

a 8 cells (66.7%) have expected count less than 5. The minimum expected count is 1.53.

Symmetric Measures

Value Approx. Sig.Nominal by Nominal Contingency Coefficient .215 .441N of Valid Cases 120a Not assuming the null hypothesis.b Using the asymptotic standard error assuming the null hypothesis.

Since p value is greater than alpha i.e. o.05 (95% confidence level), thereforethere is no association between occupation and occassion.

AGE OF RESPONDENT vs FREQUENCY OF CONSUMPTION IN A WEEK CROSSTABULATION



Null hypothesis: There is no significant relationship between age and frequency.Alternative hypothesis: There is significant relationship between age and frequency.Level of significance: 0.05

frequency of consumption in a week Total1-2 2-5 above 5

age of respondent 15-25 Count 52 40 13 105Expected Count 52.5 41.1 11.4 105.0

26-35 Count 4 6 0 10Expected Count 5.0 3.9 1.1 10.0

36-50 Count 4 1 0 5Expected Count 2.5 2.0 .5 5.0

Total Count 60 47 13 120Expected Count 60.0 47.0 13.0 120.0

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 4.570(a) 4 .334Likelihood Ratio 6.007 4 .199Linear-by-Linear Association 1.419 1 .234N of Valid Cases 120

a 5 cells (55.6%) have expected count less than 5. The minimum expected count is .54.

Symmetric Measures

Value Approx. Sig.Nominal by Nominal Contingency Coefficient .192 .334N of Valid Cases 120

a Not assuming the null hypothesis.b Using the asymptotic standard error assuming the null hypothesis.

Since p value is greater than alpha i.e. o.05 (95% confidence level), thereforethere is no association between purchase frequency and age.

AGE OF RESPONDENT vs QUANTITY PEOPLE PREFER TO BUY CROSSTABULATION

Null hypothesis: There is no significant relationship between age and quantity.Alternative hypothesis: There is significant relationship between age and quantity.Level of significance: 0.05

quantity people prefer to buy Total300 ml 500 ml 1 ltr 1.5 ltr

age of respondent 15-25 Count 62 31 9 3 105Expected Count 57.8 34.1 9.6 3.5 105.0

26-35 Count 3 6 1 0 10Expected Count 5.5 3.3 .9 .3 10.0

36-50 Count 1 2 1 1 5Expected Count 2.8 1.6 .5 .2 5.0

Total Count 66 39 11 4 120Expected Count 66.0 39.0 11.0 4.0 120.0

Chi-Square Tests

Value df Asymp. Sig. (2-sided)



Pearson Chi-Square 10.522(a) 6 .104Likelihood Ratio 8.563 6 .200Linear-by-Linear Association 5.785 1 .016N of Valid Cases 120a 8 cells (66.7%) have expected count less than 5. The minimum expected count is .17.

Symmetric Measures

Value Approx. Sig.Nominal by Nominal Contingency Coefficient .284 .104N of Valid Cases 120a Not assuming the null hypothesis.b Using the asymptotic standard error assuming the null hypothesis.

Since p value is greater than alpha i.e. o.05 (95% confidence level), thereforethere is no association between age and quantity.

FREQUENCY OF CONSUMPTION IN A WEEK vs QUANTITY PEOPLE PREFER TO BUY CROSSTABULATIONNull hypothesis: There is no significant relationship between frequency and quantity.Alternative hypothesis: There is significant relationship between frequency andquantity.Level of significance: 0.05

quantity people prefer to buy Total300 ml 500 ml 1 ltr 1.5 ltr

frequency of consumption in a week 1-2 Count 38 17 41 60

Expected Count 33.0 19.5 5.5 2.0 60.0

2-5 Count 22 20 3 2 47Expected Count 25.9 15.3 4.3 1.6 47.0

above 5 Count 6 2 4 1 13Expected Count 7.2 4.2 1.2 .4 13.0

Total Count 66 39 11 4 120Expected Count 66.0 39.0 11.0 4.0 120.0

Chi-Square Tests

Value df Asymp. Sig. (2-sided)Pearson Chi-Square 13.255(a) 6 .039Likelihood Ratio 10.877 6 .092Linear-by-Linear Association 5.399 1 .020N of Valid Cases 120a 6 cells (50.0%) have expected count less than 5. The minimum expected count is .43.

Symmetric Measures

Value Approx. Sig.Nominal by Nominal Contingency Coefficient .315 .039N of Valid Cases 120



a Not assuming the null hypothesis.b Using the asymptotic standard error assuming the null hypothesis.

Since p value is less than alpha i.e. .05 (95% confidence level), therefore h0 is rejected. This shows that there is high association between purchase frequencyand SKU or quantity packs. This is an indication of the fact that people prefer

ring smaller SKUs usually purchase more as compared to others.

CONCLUSION

Following are the concluding points taken into consideration after the conduct of the research study: Maximum consumption of soft drink in a week is 1-2 times. Most of the people prefer to buy 300 ml bottle. Most of the people consume without any occasion(Just Like That) The most favorable characteristic is taste, which induces people to buysoft drink. The most preferable alternative for soft drink is fruit juices.

By the research we found out that there is no effect of advertisement and brand ambassador on the purchase of soft drink.

ANNEXURE

QUESTIONNAIREPERSONAL DETAILSName - _________________ Age - 15-25 26-35 36-50

Gender - Male FemaleOccupation - Student Business Service



Hello! We are the student of DBIM, VNSGU and we are required to submit project on a comparative study of consumption of Soft Drinks. For the purpose, we are conducting the survey. Will you please take a few minutes to answer some questions? We assure you that your answers will be kept completely confidential.

Q1. Frequency of consumption of your preferred drink in a week?a) 1-2 times b) 2-5 times c) Above 5

Q2. What quantity do you usually prefer to buy?a) 300 ml b) 500 ml bottle c) 1 litred) 1.5 litre

Q3. On what occasions, do you often consume the Soft Drinks?a) Feeling Thirsty b) Parties / Celebrations c) with fast food/ dinner

d) Without any reason (just like that)

Q4. What induces you to buy Soft Drinks?a) Price with quantity b) Health Drink c) Status symbol

d) Taste e) Variety

Q5. If not a Soft Drink, which other beverage (other than water) tops your mind?a) hot beverages b) Milk based(shakes/lassi)c) fruit juice

Q6. How do you view Soft Drinks?

a) As a health drink b) As a status symbol c) As an aid to put off thirst d) Any other, please specify _ _______

Q7. Do advertisements affect your purchases?a) Yes b) No

Q8.Through which medium did you come to know about your preferred soft drink brand?a) Hoardings and bannersb) Newspaper and magazinesc) TV/radiod) Word of mouthe) Others ……………..

Q9. Do brand ambassador affect your purchases?a) Yes b) No

Q10. Name any three brands of Soft Drinks that are there in your mind at present?Soft Drinks: 1.________________ 2. ______________ 3. ________________

BIBLIOGRAPHY

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



www.foodindustryindia.com http://fnbnews.com/article/detarchive.asp?articleid=25105&sectionid=3 http://fnbnews.com/article/detarchive.asp?articleid=24983&sectionid=3 http://www.foodindustryindia.com/newfood/detailnews.jsp?n=Xtazy,%20another %20energy%20drink%20for%20the%20Indian%20market&id=598 http://fnbnews.com/redfr.asp?fn=/other/aboutus.asp&title=About%20Us#Food&beverage

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33026505 Research Proposal for Soft Drinks 2 2