Consumer Behaviour

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A STUDY ON CONSUMER BEHAVIOUR

INTRODUCTION

Non-alcoholic soft drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks are available in glass bottles, aluminum cans, PET bottles or disposal containers can be divided into carbonated and non-carbonated drinks. Soft drinks are being manufactured since so long. There are various flavors in soft drinks that are lemon, orange, mango and cola. In India, aerated water also known as SODA was introduced since time in memorial.

Soft drinks may be divided into two classes namely

1. Aerated table waters

2. Efficient beverages.

The efficient beverages are flavored and are known as Soda Water. In 1972 in producing dated mineral spring water large scale manufacturers of accurate water was started by PAUL at Geneva after wars by SHOW EPPE in London.

In United States of America, spokesman added fruit juice as flavor and soft drinks industry from them.

From the original conception of the irritation of the natural carbonate waters from springs, the industry has broad needed to include the production of created sweet drinks and substitutes for beverages such as idea, which are decorated by fermentation. The techniques of large detached water were considerably improved as time being.

Scientific and technological progress has charged the phase of every day life of man and soft drink industry is not in exception. The latest science and technology has improved the quality as well as the quantity of production. The incredible progress is also achieved in transportation of soft drinks that is distribution to every mask and corner of the country. In view of the rapid progress and the spread of soft drink productions, the industry dates to the tastes and needs of consumers and industry are large dimensions.

Cola, Lemon and oranges are carbonated drinks and non-carbonated drinks include mango drinks .Soft drinks can also be divided into Cola products and non-cola products. Cola products like Pepsi, Coca-Cola, Thumps Up, and Diet Coke, Diet Pepsi etc. Account for nearly 61-62% of the total soft drinks market. Non-Cola products constitute 36%, and based on the types of flavors available can be divided into Orange, Cloudy Lime, Clear Lime and Mango.

NEED FOR THE STUDY

The present study is conducted considering the following aspects. Firstly Vijayawada is a perspective of soft drink marketing in the country, which is highly promising with a lot of potential, which is to be tapped. Secondly, the behaviors of the target consumers are highly vibrant showing the past movement in this life that are also market drive. The marketing has accompanied to representations, both formal and informal marketing.

Having considered one by one of both consumer and retailer in present day market an attempt was made to study the perception of both consumers and retailers on the marketing of Pepsi brands in general and market share of coke in Vijayawada.

Soft drink industry has got a special place in products marketing consumer product. World over, the market rivalry between international giants like Coke and Pepsi and widely known as cold wars.

Indian soft drink industry is dominated few players like Parle drinks etc That with the liberalization in 1990s in the Indian Economy, the competitors in this industry have increased tremendously and the end consumer had got the wide range of chief choices among.

It is the time to take the steps to improve the market share of the Coke products; it is necessary to conduct market survey.

SCOPE OF THE STUDYThe marketing as many branches including marketing, advertising, sales promotion, branding, consumer behavior, retailer survey etc.

But the study is confined to consumer behavior survey. The focus of the stud on selection of bottles, opinion about prices, impact on advertisement etc.

The geographical scope of the present study of consumer behavior survey is limited to only Vijayawada City

OBJECTIVES OF THE STUDY1. To examine the soft drinks industrys evolution and growth, and recent Government policy.

2. To find out the weak area or areas which are untapped?

3. To know about the percentage of promotional activities like retail outlet Painting, glow sign boards, high image boards and visualized coolers.

4. To evaluate the market potential and SWOT Analysis of soft drink products.

5. To make necessary suggestions for the improvement of the organization.

RESEARCH METHODOLOGYMARKETING RESEARCH

The American marketing association defines marketing research as the systematic gathering, recording and analyzing of data about problem related to the marketing of goods and services

DATA COLLECTION

The study is based on both primary and secondary data.

PRIMARY DATA

The information, which is followed in fresh for the first, time and thus happen to be original in character. Primary data is collected through survey and the method used for, Questionnaire.

SECONDARY DATA

Secondary data are those which have already been collected by some one else and which have already been passed through the statistical process. Some of the sources are as follows.

Company internal records

News papers

Magazines Other published sources

Directories

Web sites etc

RESEARCH INSTRUMENT Questionnaire

Questionnaire construction is a crucial part of the survey and once the questionnaire is up to the mark, then that it self is an indicates of success of the project. A good questionnaire will make the respondents feel easy and generate interest to fill up the questionnaire, which also minimizes rejection of questionnaire by the respondents to a grater extent.

The survey was conducted using structured questionnaire, questions belongs to both open ended and multiple choice patterns.

SAMPLE SIZE

The survey contains a sample of 100 consumers belong to the Vijayawada.

LIMITATIONS Time and expenses are major constraints.

Unavailability of recent information due to lack of awareness of the respondents.

The study is limited to Vijayawada city only.

The sample which has been taken for the study is too small to study the Market share in Vijayawada.

The duration of the study for two months is constraint to get accurate results.

INTRODUCTION ABOUT THE SOFT DRINKSWhat is soft-drink????

A soft drink is a non-alcoholic, flavored, carbonated beverage. Usually commercially prepared and sold in bottles or cans. In both sense also called soda pop also called regionally COLD DRINK, DRINK, POP, SODA, SODAWATER, and TONIC.BRIEF HISTORY

There was no foreign market before 15 years. It was only when our Prime Minister Mr. MANMOHAN SINGH and our Finance Minister paved the way of Globalization and allowed the foreign markets to trade liberally with India.There was a monopoly of Parle Exports Ltd.., who ruled in India with Beverages namely GOLD SPOT, LIMCA, MAAZA, KISMAT, THUMSUP and BISLERI SODA. It was headed by Mr. Ramesh Shohan with the introduction of Globalization in India, there grew a tough competition between Pepsi Company and PARLE exports couldnt with stunt the sophistication, Parle sold its patient rights to the coca-cola company from North Atlanta spread.

THE CURRENT SOFT-DRINK INDUSTRY

The soft-drink industry has changed far more than its largest players would care. It has changed more than competitors, stockholders have enjoyed, and it is a far different industry than it was only a decade ago. Changes were apparent even then but few under-stood the breadth of change that would be taking place. The industry currently is restricting and consolidating while raising prices without raising value. Not income is greatly reduced, but revenue has increased far most and analyses believe that growth will soon resume.

Soft drinks buoyant due to sales of fruit/vegetable juice and bottled water Soft drinks experienced another good year in 2006. The positive growth in soft drinks in India was primarily driven by the increased demand for fruit/vegetable juice and bottled water. With rising disposable incomes and a preference for healthy and natural products, fruit/vegetable juice was in great demand in 2006. Bottled water also continued its fast growth, with demand stemming from the rising populations in cities and the crumbling public infrastructure for tap water.Carbonates growth limited by the pesticides controversy

The concerns about the safety of carbonates were renewed in the wake of the pesticides controversy in August 2006. Similar concerns were voiced in 2003. The alleged harmful effects of pesticide residues in carbonates affected the image and consumption of carbonates negatively. Within carbonates, consumers increasingly preferred non-cola carbonates to cola carbonates. The pesticides controversy resulted in an increasing number of consumers shifting towards perceived healthier beverages.

Indian consumers were slow to accept new soft drink options such as functional drinks and RTD tea, although these beverages produced dynamic growth rates from a low base in 2005 and 2006. On the other hand, carbonates, bottled water and fruit/vegetable juice have long been popular beverages in India. The relatively low consumer awareness of functional drinks and RTD tea stems mainly from the lack of promotional activity. Manufacturers have marketed and positioned these products in large metropolitan cities. Thus, the combination of high prices, restricted product availability and a lack of promotional activity led to the slow uptake of emerging soft drinks.

Coca-Cola India Pvt. Ltd maintains its leading positionCoca-Cola India Pvt. Ltd maintained its leading position in soft drinks in India, followed by PepsiCo India Holdings Pvt. Ltd in 2006. Whilst the retail volume shares of Coca-Cola India and PepsiCo India slipped in 2006, as a result of the growing health concerns caused by the aftermath of the pesticides controversy, both maintained a comfortable lead over the other manufacturers. Parle Bisleri Ltd has steadily gained shares from the carbonates giants over the review period, to emerge as the third ranked company in 2006. The battleground for beverages has moved from carbonates to bottled water and fruit/vegetable juice, with manufacturers turning their attention towards these healthier beverages, as consumer interest continues to surge forward. A number of new players have entered fruit/vegetable juice and bottled water, vying for a slice of the growing pie.Future soft drinks growth to come from healthier beveragesSoft drinks are expected to grow at a healthy pace over the forecast period. Much of the demand for soft drinks is expected to be for healthier beverages. With consumer preferences shifting towards healthier options worldwide, India is following suit. Growing consumer awareness about healthier soft drinks and the effects of the pesticides controversy mean that consumers are likely to opt for healthier alternatives over the forecast period. Thus, sales of carbonates are expected to stagnate over the forecast period while fruit/vegetable juice and bottled water are projected to experience robust growth. Functional drinks and RTD tea are expected to reproduce the dynamic growth of 2005-2006, albeit from a low base.

MARKET SHARE (IN%)

BRAND NAMEMARKET SHARE (IN%) (ORG fig)MARKET SHARE (IN%) (IMRB figures)

PEPSI4149

COCA COLA5748

BRANDS AVAILABLE WITH COCA COLA & ITS COMPETITIORS

companyColaOrangeMangoCloudy lemonClear lemonSoda

cokeCokeFantaMaazaLimcaSpriteKinely

PepsiPepsiMirindaSlice7upMountain dew

Mc donaldsThrillRush-SpritSparklingBagpiper

MAJOR PLAYERS

The Global major COCA-COLA & PEPSI dominate the soft drink market in India. Coca Cola, which had wound up its India operations during the introduction of the FERA regime and re-entered 16 years later in 1993. Coca Cola acquired major chunk of the soft drink market by buying local brands Thumps-up, Limca and Gold Spot from Parle beverages. Coca Cola had also acquired Cadbury Schweppes soft drink brands Crush, Canada Dry and Sport Cola in 1999 and now recently in Oct 2000; it acquired distribution rights of these brands from IFB Agro Limited. Pepsi although started a couple of years before Coca-Cola in 1991, has a lower market share today. It has bought over Mumbai based Dukes range of soft drink brands.

SOFT-DRINK MANUFACTURING PROCESS Soft drink may be carbonated or non-carbonated. For carbonated drinks carbonation forms a critical part of the process. In carbonation carbon di-oxide beverage dissolved in the water, which is used in manufacturing the drink : Normally the ingredients in Soft drinks are as follows and acidulate (citric, nalic or phosphoric acid), sweetener, flavor and perspective.

In a bottling plant, soft-drink company supply concentrates in the bottlers, where it is diluted in distilled water along with other ingredients in specific proportions. The quality of this mixture is minted through strict controls.

CLASSIFICATION OF SOFT DRINKS BASED ON PACKING:The classification of soft drinks based on packing is as follows:

TETRA-PACKS

DISPENSES

CANS

PET BOTTLESPEPSI FOODS PRIVATE LTD.,

PepsiCos beverage business was founded 1898 by Caleb Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi-Cola.

Today, Brand Pepsi is part of a portfolio of beverage brands that includes carbonated soft drinks, juices and juice drinks, ready-to-drink teas and coffee drinks, isotonic sports drinks, bottled water and enhanced waters. PBNA has well known brand such as Mountain Dew, Diet Pepsi, Gatorade, Tropicana Pure Premium, Aquafina water, Sierra Mist, Mug, Tropicana juice drinks, Propel, Sobe, Slice, Dole, Tropicana Twister and Tropicana Seasons Best.

PepsiCo offers product choices to meet a broad variety of needs and preference -- from fun-for-you items to product choices that contribute to healthier lifestyles.

PepsiCos mission is To be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

PepsiCo is a world leader in convenient snacks, foods and beverages, with revenues of more than $39 billion and over 185,000 employees.

The company consists of PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB) and PepsiCo International (PI).PAF includes Frito-Lay North America, Quaker Foods North America and all Latin America food and snack businesses, including Sabritas and Gamesa businesses in Mexico. PAB includes PepsiCo Beverages North America and all Latin American beverage businesses. PI includes all PepsiCo businesses in the United Kingdom, Europe, Asia, Middle East and Africa. PepsiCo brands are available in nearly 200 countries and generate sales at the retail level of more than $98 billion. Some of PepsiCo's brand names are more than 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001.

profile of coca - colaTHE COMPANY

The Atlanta (US) based $ 18.55 billion The Coca-Cola Company is a transnational giant operating in the soft drinks and related business. It enjoys the strongest brand awareness in the world and its flagship brand Coca-Cola (Coke) is consumed by the young and the old alike across nations. The company shares are held by financial institutions, employees and the general public with no single entity enjoying a majority stake. At present, the company is headed by Mr. Isdal Neville, Chairman John and CEO.

MISSION

The Coca-Cola company's first and foremost responsibility is towards its share holders. The company defines its mission in the following words "We exist to create value for our share owners on a long term basis". According to the company " when we create value for our customers, we create preference for our products and our company and ultimately value for our share owners.

CORPORATE CITIZENSHIP

The Coca-Cola company has a long tradition of corporate philanthropy and community involvement. Since 1990, it has focused on supporting education. The Coca-Cola foundation, the company's philanthropic arm supports schools, colleges and universities around the world. The company also offers scholarships to high school seniors through the Coca-Cola scholars foundations, a joint initiative with many Coca-Cola bottlers.

THE COCA-COLA QUALITY SYSTEM

Quality is more than just something we taste or see or measure or manage. Quality shows it.

The company's quality system can be stated in 3 broad principles.Principle 1: The symbol of quality Every thing associated with the trademarks of Coca-Cola company reflects the company's position of leadership & quality.

Principle 2: Customer & consumer satisfaction Internet in the products and services associated with the Coca-Cola company is a desire to attain the highest level of customer & consumer satisfaction.

Principles 3: A responsible citizen of the world. The Coca-Cola company is a responsible corporate citizen in all activities associated with its products and trademarks. The decentralised operating philosophy is the foundation for the company's past and future success. It operates in markets with dramatically different consumer preferences, economic conditions, product delivery systems, retail trade customers, environmental regulations and market place opportunities. Within this decentralised structure, the local managers make decisions based on the specific opportunities available in their markets. The company's commitment to the local community ensures that they hire a work force that reflects the diversity of the local consumers and customers. The decentralised operating culture allows the company to recognise trends in consumer preferences and to respond with appropriate brand and package combinations.

It is this marketplace focus that has enabled the company's core brands to consistently rank among the top performing soft drinks in the world. Their investments in people, information systems, and technology have created a resource base not easily matched by the competitors.

INDIAN OPERATIONS

Coca-Cola first entered India during the 1970s. However adverse political climate forced the company to call off its operations in India. It later staged a comeback when the liberalization wave swept through the country. However the going was not smooth for the company. Its world wise arch rival Pepsi had already entered India and had carved out a reasonable market share. The company also had to contend with the top Indian brand hi beverages - Parle soft drinks which had powerful brands like Thums Up, Limca, Gold spot, Citra and Maaza. The Parle products alone made up 69% of the total market. Coca-Cola India entered into a strategic alliance with Parle soft drinks so as to take advantage of the letters wide distribution network and large number of bottling units spread across the length and breadth of the country. Gradually the company bought out all the Parle brands including the leading brand Thums Up.

Today the products of Coca-Cola India are Coke, Thums up, Fanta, Limca, Citra (which is slowly being replaced by Sprite), Maaza (a fruit juice) and Kinley soda. These are marketed through 300 ml bottles, 1 liter bottles, 1.5 liter Pet bottles, fountains and cans. Coca-Cola India faces stiff competition from arch rival Pepsi Company India which has products like Pepsi, Mirinda, 7 up, Slice & Dukes soda. It also faces some competition from brands like Crush and Canada Dry which are owned by Cadbury Schweppes.

Coca-Cola India has floated two subsidiaries - Bharat Coca-Cola and Hindustan Coca-Cola, which act as holding companies for most of its bottling operations. This gives the transnational ownership and control over this crucial pact of its operations. When Coca-Cola first entered India, it conducted its operations through franchised bottling units. The company is now acquiring full financial and operational control of these units.

OPERATIONS IN ANDHRA PRADESH

There are 9 business units in A.P according to their order of establishment are;

1. HYDERABAD

2. VIJAYAWADA

3. VIJAYAWADA4. RAJAHMUNDARY

5. SECUNDERABAD

6. GUNTUR

7. NELLORE

8. KHAMMAM

9. NANDYAL

10. KESAVARAMThe targets regarding sales, marketing inputs are fixed by thumps up CCI to its franchise holders and be followed up throughout the year. The marketing program is handed over to the respective franchise holders at the beginning of the year. The control of CCI over its franchise exits through quality marketing program and production. It plans the promotional activities, which have to be implemented by the franchise holders. It directly or indirectly controls each and every aspect of their operations.

The present coca cola unit has sophisticated equipments that can produce 600 bottles per minute. From this unit were coca cola products are produced by there are

1. COKE

2. FANTA

3. SPRITE

4. LIMCA

5. MAAZA

6. THUMS UP

7. KINLEY-SODA

8. DIET COKE

The above were products supplied to coastal district, like Vijayawada, Vijayanagaram and Srikakulam, and also its products is supplied to some of the district, of Orissa state.

BHARAT COCA-COLA BOTTLING SOUTH EAST PRIVATE LIMITED (VIJAYAWADA)The organization study was conducted at Bharat Coca-cola Bottling Southeast Pvt. Ltd. which came into being when VBC Industries (which was a franchised bottling unit) was acquired by Coca-Cola India on 10th Oct, 1998. This unit serves the districts of Vijayawada, Vizianagaram and parts of Orissa State.

The main plant is situated at Manchukonda Gardens while the smaller Maaza unit is situated 1 km down the road. The plant produces 300 ml bottles of Coke, Thums Up, Fanta and Limca and their canisters while the Maaza unit produces the 250 ml Maaza fruit drink.

After acquiring the unit, the company is trying to mould the organization so that it becomes consistent with the Coca-Cola work culture. The top level management has already been professionalized and change is expected at the middle level also. A total reorganization is around the corner.

Bharat Coca-Cola Bottling Southeast Private Limited is headed by an Area General Manager. The various departments are the Finance department, the Sales department, the Plant, the Quality Assurance department and the Personnel department. QUALITY ASSURANCE DEPARTMENT

The quality assurance department is headed by a deputy manager. In addition to him there are chemists. The deputy manager reports to the AGM.

The department tests and controls the quality of water, caustic solution and the final beverage. The final beverage is tested for gas & brix (i.e., the sugar content).

Samples are taken every half an hour. Any deviation from the specified standards is reported & rectified immediately.

In the micro testing lab the water & beverage is tested for contamination. If any indication of contamination is found out, the QA department has the right to stop production immediately.

In the general lab, the products are tested for flavor & freshness. In addition to this, the department does a shelf test. 5 bottles are collected per day & they are kept the shelf for a period of 3 months. Later they are tested. Any complaints from the market is promptly attended to . The batch number & months is noted & a corresponding sample is tested from the shelf. Any complaint from the market is received by the sales team who in turn informs the QA department. One chemist is in charge of spot checking of fountains.

The deputy general manager or any of his subordinates in the QA department have the right to stop production & order a sterilisation process for the entire plant. They can even bypass the plant manager in this regard.

The department sends daily reports to the AGM & the plant manager, hi case of any urgent need, he meets the AGM, personally and sorts out the issue.

SALES DEPARTMENT

The sales department has a senior sales manager and 3 sales managers. Of the three sales managers, one person is in charge of city sales while the others look after district and Orissa sales. All of them report to the AGM directly who interact with the sales department on a daily basis and virtually leads the team.

District Sales

In addition to the sales manager, there is a deputy sales manager, 4 assistant sales managers and below them 2 sales men each. Each distributor has a target which is fixed by the sales manager in consultation with the distributor. From the distributor, it reaches the retailer outlet. The company sales force helps the retailers and distributors achieve their targets through promotions and other incentives.

The sales force in far locations report to the sales manager once a week. Based on their reports, new incentive schemes and offers are made. The previous weeks performance is evaluated and targets for the next week are discussed. City Sales

Under the Sales manager (city) there are 13 supervisory staff and 113 field force. The company has no distributors in the city of Vijayawada. They directly supply to the retailers. There are twenty routes with a truck covering each route. Each truck is accompanied by a sales man and two sales helpers. There is a sales officer for every two routes. He moves around on a bike and sees to it that all outlets are covered. Any urgent message is communicated to the sales force through pagers.There are approximately 2500 outlets in Vizag city. In loop areas i.e. areas where the company truck cannot go, a fat dealer is appointed. He supplies to these areas and gets about 5% discount.

Bottles and crates are provided to a retailer after a certain deposit is paid. In peak season when there is excess demand, crates are also provided on loan. This does not involve money transactions & retailer may take 10 crates on loan, which he will return later.

Coolers are installed at retail outlets depending on the retailers requirement and sales volume. The sales man on his visit sees to it that the coolers are properly maintained. Any serious problem is rectified by the service engineers who are on a contract basis with the company.

Targets are fixed & the sales men and sales helpers get incentives for achieving and exceeding the targets. On returning to the sales depot, he submits the load sheets the cash sales invoice; cash detail form and the settlement sheet.

The sales manager interacts with his sales team in the depot every morning where the latest market situation is discussed. The SM does not hand over charge to any one person during his absence. The AGM manages me show.

Recruitment and selection to this department is done by the personnel department. There is no regular training programme and the department is well staffed.

Advertising and merchandising is handled by a person who reports to the SM. The budget is fixed at Bangalore. This is split up and allocated to different departments. The art work, the location, the type of display etc., is decided by the advertising in charge. The medium used include canopy, glow signs hoardings paints etc.CUSTOMERS SERVICE SUPPORT SYSTEM

There is a customer service support system (CSSS) which functions under the CSSS for entire Andhra Pradesh. Locally it reports to the AGMIn the soft drinks industry, the customer and the consumer is defined separately. The customer is one who resells for profit. This includes the retailer and the distributor. By consumer we mean the end user of the products.

The CSSS studies the distribution network and suggest improvements were necessary. The viability of existing routes, developing new routes, distribution and merchandising planning are all functions of CSSS. It even suggests training programmes for the sales force depending on the need. The function of CSSS can be briefly summed up as Managing the Middlemen".CONSUMER RESPONSE CO-ORDINATION UNIT (CRC)

The consumer response co-ordination unit functions under the sales manager. This unit is temporarily handled by the CSSS.

The CRC unit receives complaints and grievance from the market either through phone calls or through the sales force. It sends regular reports to the corporate office. These reports are useful for dealing with similar situations arising in Different parts of the country.FINANCE DEPARTMENT

The finance department is headed by a finance manager. This is a very powerful post in the company and the finance manager is the second in command of the unit. He reports to the CFO for functional matters-who is Based in Bangalore-and to the AGM for administrative matters.

The entire plant and operations keep him abreast of their daily functioning, while the AGM mainly attends to the sales function. The finance department can be broadly segmented into two. The accounting sections and Bie Payables Receivables i.e., the working capital. In addition to this sections like shipping stores, purchase, administration and taxes report to the FM.

The annual budgets is prepared at Banglore. The Fm makes allocation for the different departments in consultation with the department heads.Stores:

There is a stores in-charge and four other people to assist him. All materials used for production are under the stores in charge once they enter the company premises. This includes sugar, essence, crown etc.

The stores department reports to the finance manager and daily reports are sent to him. Materials are stocked in accordance with the production schedule and sales targets.Shipping

This functions under the shipping in-charge who notes the fulls position in godown, empty position, fulls movement and empty movement. This units reports to the FM.Purchase

This sections functions with two people including the purchase in-charge who reports to the FM. The plant informs the stores of the requirements who in turn make a purchase request to the purchase department. Every purchase matter whether concerning the plant or office is handled by the purchase department.

PERSONNEL DEPARTMENT

The personnel department is headed by a manager- personnel and legal. There is a deputy manager and three accounts assistant reporting to the manager. The department handles all administrative and legal matters.

Matters like recruitment, selection, wage structure etc. is decided at Bangalore. Leave for the staff is sanctioned by the respective department heads. The department is conducting training programs in computers and spoken English so as to better equip its people to handle the change the organisation is under going. It reports to the FM and the AGM on a daily basis.

Security

There is a security officer who is an employee of Bharat Coca-Cola. He reports to the Area General Manager. There is a security officer and four security guard pershift. They are group four employees and are taken on a contract basis.

MAN POWER PARTICULARSThe man power particulars of Hindustan Coca Cola beverages Pvt, Ltd., Vijayawada unit is as follows

Department Managers StaffWorkmen Total

Administration1113

Finance 110011

Human resource 2103

Information system0101

GA0101

Production145358

Maintenance02911

Electrical & instrumentation0134

Quality181827

Forces0404

Supply chain0303

Plant shipping0171835

Logistics 035760

Sales 6381458

Total1294173279

Total

: 279

Trainees

: 3

Temporary hires: 2

Casual labour: 126

Apprentice

: 34

Total

: 444

CONSUMEREverybody in this world is a consumer. Everyday of our life we are buying and consuming an incredible variety of goods and services. However, we all have different tastes, likes and dislikes and adopt different behaviour patterns while making purchase decisions. Many factors affect how we, as individuals and as societies, live, buy, and consume. External influences such as culture, ethnicity, and social class influence how individual consumers buy and use products, and help explain how groups of consumers behave. The study of culture encompasses all aspects of a society such as its religion, knowledge, language, laws, customs, traditions, music, art, technology, work patterns, products, etc. Culture is an extremely critical and all pervasive influence in our life.

CONSUMER BEHAVIOUR

Consumer behavior is the study of how people buy, what they buy, when they buy and why they buy. It blends elements from psychology, sociology, socio psychology, anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

Belch and Belch define consumer behaviour as 'the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires'.

Consumer behaviour is comparatively a new field of study which evolved just after the Second World War. The sellers market has disappeared and buyers market has come up. This led to paradigm shift of the manufacturers attention from product to consumer and specially focused on the consumer behaviour. The evaluation of marketing concept from mere selling concept to consumer oriented marketing has resulted in buyer behaviour becoming an independent discipline. The growth of consumerism and consumer legislation emphasizes the importance that is given to the consumer. Consumer behaviour is a study of how individuals make decision to spend their available resources (time, money and effort) or consumption related aspects (What they buy? When they buy?, How they buy? etc.).

The heterogeneity among people makes understanding consumer behaviour a challenging task to marketers. Hence marketers felt the need to obtain an in-depth knowledge of consumers buying behaviour. Finally this knowledge acted as an imperative tool in the hands of marketers to forecast the future buying behavior of customers and devise four marketing strategies in order to create long term customer relationship.

It is broadly the study of individuals, or organizations and the processes consumers use to search, select, use and dispose of products, services, experience, or ideas to satisfy needs and its impact on the consumer and society.

Consumer behaviour also called as Consumer Psychology is a branch of applied Psychology, marketing and Organizational Behaviour. It examines consumer decision making process and ways in which they gather and analyze information from the environment. See the consumer behaviour article for an overview. Consumer behaviour is a multidisciplinary field which is integral to Industrial Psychology and aspects of household economy studied in microeconomics. Consumer behaviour also means the actions shows by consumers while making decision to select household and consumer items.

There are three fundamental patterns which a consumer can follow and they could be:

(I) Brand first, retail outlet second

(ii) Retail outlet first, brand second

(iii) Brand and retail outlet simultaneously.

Retail outlet first and brand second: When a number of consumers follow this sequence of decision-making, display of point-of-purchase material and building the image of the outlet becomes important. The manufacturer of the brand may have to ensure that the brand (and the variants demanded) will be available at the key outlets in a locality. Point-of-purchase materials which are to be used at the retail outlet may require primary research - should visuals be used, should product features be used, should the POP material be in the regional language. There may also be a need to monitor competition from other retail outlets to ensure that consumers are kept satisfied in terms of service, price, promotional deals and ambience. This is especially applicable to durables retailing in India (in cities). Retailers attempt to increase consumer traffic by providing a number of `add-ons'.

Brand first and outlet second: The brand was probably thought of by the consumers because (i) the consumers may not have developed a relationship with any retailer which is strong enough to get into the `evoked retail set' or (ii) the brand has got into the evoked set because of advertising or positive word of mouth. Local advertising with the mention of brand names which have already got into the evoked set would enable consumers to be `pulled' to the outlet.

Brand and retail outlet simultaneously: When consumers think of the brand and retail outlet together, it means that they have a certain preference for the outlet and would like to check the evoked set of brands there. The marketer would have to carry out primary research to find out specific markets where consumers have a very positive relationship with retailers. This is important because of the influence of retailers over the purchase behaviour of consumers in the Indian context.

Primary research may be required to identify the brands in the evoked set. This feedback may have to be provided by the manufacturers of a brand to retailers in various regions (especially if it is a brand with a major chunk of the market and one which is nationally advertised). Even multinational outlets could make use of this approach and mention the brands in the evoked set (in a given geographical area). This is likely to improve traffic to the outlet. Besides, the evoked set could also change from time to time depending on the strategies of brands.Customers versus ConsumersThe term customer is specific in terms of brand, company, or shop. It refers to person who customarily or regularly purchases particular brand, purchases particular companys product, or purchases from particular shop. Thus a person who shops at Bata Stores or who uses Raymonds clothing is a customer of these firms. Whereas the consumer is a person who generally engages in the activities - search, select, use and dispose of products, services, experience, or ideas.Need for Study of Consumer BehaviourThe study of consumer behaviour helps everybody as all are consumers. It is essential for marketers to understand consumers to survive and succeed in these competitive marketing environment. The following reasons highlight the importance of studying consumer behaviour as a discipline.

Importance in day to day lifeThe purpose of studying a discipline is to help oneself to better appreciate its contributions. The reason to study consumer behaviour is because of the role it plays in the lives of humans. Most of the free time is spent in the market place, shopping or engaging in other activities. The extra time is usually passed in knowing and thinking about products and services, discussing with friends about them, and watching advertisements related to them. The usage of them significantly reveals our life styles. All these reasons suggest the need for study. However, the purpose may be to attend immediate and tangible reasons.

Pertinence to Decision MakingConsumer behaviour is said to be an applied discipline as some decisions are significantly affected by their behaviour or expected actions. The two perspectives that seek application of its knowledge are micro and societal perspectives.

The micro perspectives involve understanding consumer for the purpose of helping a firm or organization to achieve its objectives. The people involved in this field try to understand consumers in order to be more effective at their tasks. Whereas the societal or macro perspective applies knowledge of consumers to aggregate- level faced by mass or society as a whole. The behaviour of consumer has significant influence on the quality and level of the standard of living.CONSUMER INVOLVEMENT

Some consumers are characterized as being more involved in products and shopping than others. A consumer who is highly involved with a product would be interested in knowing a lot about it before purchasing. Hence he reads brochures thoroughly, compares brands and models available at different outlets, asks questions, and looks for recommendations. Thus consumer involvement can be defined as heightened state of awareness that motivates consumers to seek out, attend to, and think about product information prior to purchase.

CAUSES OF CONSUMER INVOLVEMENT

The factors that influences consumer involvement include personal, product and situational.Personal Factors

Self-concept, needs, and values are the three personal factors that influence the extent of consumer involvement in a product or service. The more product image, the value symbolism inherent in it and the needs it serves are fitting together with the consumer self- image, values and needs, the more likely the consumer is to feel involved in it. Celebrities for example share a certain selfimage, certain values, and certain needs. They tend to use products and services that reflect their life style. They get highly involved in purchasing prestigious products like designer wear, imported cars, health care products etc.Product Factors

The consumer involvement grows as the level of perceived risk in the purchase of a good or service increases. It is likely that consumers will feel more involved in the purchase of their house than in the purchase of tooth paste, it is a much riskier purchase.

Product differentiation affects involvement. The involvement increases as the number of alternatives that they have to choose from increases. This may be due to the fact that consumers feel variety which means greater risk.

The pleasure one gets by using a product or service can also influence involvement. Some products are a greater source of pleasure to the consumer than others. Tea and coffee have a high level of hedonic (pleasure) value compared to, say household cleaners. Hence the involvement is high. Involvement increases when a product gains public attention. Any product that is socially visible or that is consumed in public, demands high involvement. For example, involvement in the purchase of car is more than the purchase of household items.Situational Factors

The situation in which the product is brought or used can generate emotional involvement. The reason for purchase or purchase occasion affects involvement. For example, buying a pair of socks for yourself is far less involved than buying a gift for a close friend. Social pressure can significantly increase involvement. One is likely to be more self conscious about the products and brands one looks at when shopping with friends than when shopping alone. The need to make a fast decision also influences involvement. A consumer who needs a new refrigerator and sees a one- day- only sale at an appliances retailer does not have the time to shop around and compare different brands and prices. The eminence of the decision heightens involvement.

The involvement is high when the decision is irrevocable, for example when the retailer does not accept return or exchange on the sale items. Thus involvement may be from outside the individual, as with situational involvement or from with in the individual as with enduring involvement. It can be induced by a host of personal-product-and situation related factors, many of which can be controlled by the marketer. It affects the ways in which consumers see, process, and send information to others.

CULTURE

Culture can be defined as the sum total of learned beliefs, values and customs that serve to guide and direct the consumer behaviour of all members of that society. Thus, culture consists of traditional ideas and in particular the values, which are attached to these ideas. It includes knowledge, belief, art, morale, law, customs and all other habits acquired by man as a member of society. An accepted concept about culture is that includes a set of learned beliefs, values, attitudes, habits and forms of behaviour that are shared by a society and are transmitted from generation to generation within that society.

Culture is learned through the following three ways:

1. Formal learning: parents and elders teach children the proper way to behave. For instance, you have been taught that you need to study to be successful and happy in life. This learning may influence your response both as a student and individual towards education.

2. Informal learning: we learn by imitating the behaviour of our parents, friends, or by watching TV and film actors in action

3. Technical learning: instructions are given about the specific method by which certain things to done such as painting, dancing, singing etc.CULTURAL INFLUENCES

Culture is that complex whole which includes knowledge, belief, art, law, morals, customs and any other capabilities and habits acquired by humans as members of society.

Culture influences the pattern of living, of consumption, of decision-making by individuals. Culture is acquired. It can be acquired from the family, from the region or from all that has been around us while we were growing up and learning the ways of the world. Culture forms a boundary within which an individual thinks and acts. When one thinks and acts beyond these boundaries, he is adopting a cross-cultural behaviour and there are cross-cultural influences as well.The nature of cultural influences is such that we are seldom aware of them. One feels, behaves, and thinks like the other members of the same culture. It is all pervasive and is present everywhere. Material culture influences technology and how it brings cultural changes like use of telephones, mobile phones, clothing styles and fashions, gives the marketers a chance to improve the product, packing, etc. to meet the needs of the customers.Norms are the boundaries that culture sets on the behaviour. Norms are derived from cultural values, which are widely told beliefs that specify what is desirable and what is not. Most individuals obey norms because it is natural to obey them. Culture outlines many business norms, family norms, behaviour norms, etc. How we greet people, how close one should stand to others while conducting business, the dress we wear and any other patterns of behaviour. Culture keeps changing slowly over time; and is not static. Changes take place due to rapid technologies. In case of emergency, war, or natural calamities, marketers and managers must understand the existing culture as well as the changing culture and culture of the country where the goods are to be marketed. Major companies have adapted themselves to international culture and are accepted globally.1. Regional, Ethnic, and Religious Influences on Consumer Behavior

The three major aspects of culture that have important effects on consumer behavior are regional, ethnic, and religious differences. Firstly, consumption patterns may differ in various regions of India and the world, and marketing strategy can sometimes be tailored specifically to these regions.Secondly, our country has a number of different ethnic groups, and population trends will dramatically alter the demographic profile of the country in the next 50 years. The very diverse Asian American subculture is described as young and having higher socioeconomic status, placing strong value on the family and the group, and being strongly brand loyal. In spite of its diversity, marketing strategies can be developed for this group.

Finally, religious beliefs and values can influence consumer. Many marketers are now becoming multicultural in their marketing activities by trying to appeal to a variety of cultures at the same time. Although the diversity of the Indian melting pot may be unique, there are many important ethnic groups in other areas of the world.2. Age, Gender, and Household Influences on Consumer Behavior

Among the four major age groups, Teens, who need to establish an identity, are the consumers of tomorrow and have an increasing influence on family decisions. The somewhat disillusioned Generation X consists of smart and cynical consumers who can easily see through obvious marketing attempts. Baby boomers grew up in a very dynamic and fast-changing world, and this has affected their values for individualism and freedom. The 50 and older segment can be divided into two groups-the young again and the gray market. Neither group likes to be thought of as old. The affect of gender differences on consumer behavior is examined next. Sex roles are changing. Women are becoming more professional and independent, and men are becoming more sensitive and caring. Also, men and women can differ in terms of traits, information processing, decision styles, and consumption patterns.Gender is consistent throughout lifetime, influencing customer values and preferences. Gender shows different consumption patterns and perceptions of consumption situations E.g. the wedding ceremony. Households play a key role in consumer behavior. The proportion of nontraditional households has increased due to factors such as

(1) later marriages,

(2) Cohabitation,(3) Dual-career families,

(4) Increased divorce, and

(5) Fewer children.

Households also exert an important influence on acquisition and consumption patterns. First, household members can play different roles in the decision process (gatekeeper, influencer, decider, buyer, and user). Second, husbands and wives vary in their influence in the decision process, depending on the situation husband-dominant, wife-dominant, autonomic, or syncratic.

3. Psychographics: Values, Personality, and Lifestyles

The roles of psychographics in affecting consumer behaviour are detailed below. Values are enduring beliefs about things that are important. They are learned through the processes of socialization and acculturation. Our values exist in an organized value system, with some values being viewed as more important than others. Some are regarded as terminal values and reflect desired end states that guide behavior across many different situations. Instrumental values are those needed to achieve these desired end states. Domain-specific values are those that are relevant within a given sphere of activity. Western cultures tend to place a relatively high value on material goods, youth, the home, family and children, work and play, health, hedonism, and technology. Marketers use tools like value segmentation to identify consumer groups with common values. Personality consists of the distinctive patterns of behaviors, tendencies, qualities, and personal dispositions that make people different from one another. Approaches to the study of personality include

1. The psychoanalytic approach, which sees personality arising from unconscious internal struggles within the mind at key stages of development;

2. Trait theories, which attempt to identify a set of personality characteristics that describe and differentiate individuals, such as introversion, extroversion, and stability;

3. Phenomenological approaches, which propose that personality is shaped by an individuals interpretation of life events

4. Social-psychological theories, which focus on how individuals act in social situations (e.g., compliant, detached, or aggressive); and

5. Behavioral approaches, which view an individuals personality in terms of past rewards and punishments.

Marketers also measure lifestyles, which are patterns of behavior (or activities, interests, and opinions). These lifestyles can provide some additional insight into consumers consumption patterns. Finally, some marketing researchers use Psychographic techniques that involve all of these factors to predict consumer behavior. One of the most well known Psychographic tools is the Values and Lifestyle Survey (VALS). The newer VALS2 identifies eight segments of consumers who are similar in their resources and self-orientations..CONSUMER-RELEVANT GROUPSTo more fully comprehend the kind of impact that specific groups have on individuals, we will examine six basic consumer-relevant groups: the Family, Friendship groups, Formal social groups, Shopping groups, Consumer action groups and Work groups.The Family

An individual's family is the most important group to influence his or her consumer decisions. The family's importance in this regard is due to the frequency of contact that the individual has with other family members and that the family has a greater extent of influence on the establishment of a wide range of values, attitudes, and behavior.Friendship GroupsFriendship groups are informal groups because they are, usually unstructured and lack specific authority levels. In terms of relative influence, after an individual's family, it is friends who are most likely to influence the individual's purchase decisions.Seeking and maintaining friendships is a basic drive of most people. Friends fulfill a wide range of needs: they provide companionship, security, and opportunities to discuss problems that an individual may be reluctant to discuss with members of his or her own family. Friendships are also a sign of maturity and independence, for they represent a breaking away from the family and the forming of social ties with the outside world. Consumers are more likely to seek information from those friends they feel have values or outlooks similar to their own.Formal Social Groups

In contrast to the relative intimacy of friendship groups, formal social groups are more remote and serve a different function for the individual. A person joins a formal social group to fulfill such specific goals as making new friends, meeting "important" people (e.g., for career advancement), or promoting a specific cause.

Because members of a formal social group often consume certain products together, such groups are of interest to marketers. For example, the membership list of a men's club would be of interest to local men, Insurance agents, automobile agents, tax accountants.

Membership in a formal social group may influence a consumer's behavior in several ways. For example, members of such groups have frequent opportunity to informally discuss products, services, or stores. Some members may copy the, consumption behavior of other members whom they admire.Shopping Groups

Two or more people who shop together-whether for food, for clothing, or simply to pass the time, can be called a shopping group. Such groups are often offshoots of family or friendship groups. People like to shop with others who they feel have more experience with or knowledge about a desired product or service. Shopping with others also provides an element of social fun to an often boring but necessary task. In addition, it reduces the risk that a purchase decision will be socially unacceptable.

Relatively few marketing or consumer behavior studies have examined the nature of shopping groups. However, one study of the in-store behavior of shoppers revealed some differences between group and individual shopping. The research found that shopping parties of at least three persons deviated more from their original purchase plans (they bought either more or less than originally planned) than did either single shoppers or two-party groups. The study also found that shopping groups tended to cover more territory in the store than individuals shopping alone, and thus had more opportunity to see and examine merchandise and to make unplanned purchases.

A special type of shopping group is the in-home shopping group, which typically consists of a group of women who gather together in the home of a friend, to attend a "party" devoted to the marketing of a specific line of products. The in-home party approach provides marketers with an opportunity to demonstrate the features of their products simultaneously to a group of potential customers. The undecided guests often overcome a reluctance to buy when they see their friends make positive purchase decisions. Furthermore, some of the guests may feel obliged to buy because they are guests in the home of the sponsoring hostess.Consumer Action Groups

A particular kind of consumer group-a consumer action group- has emerged in response to the consumerist movement. This type of consumer group has become increasingly visible since the 1960s and has been able to influence product design and marketing practices of both manufacturers and retailers. Consumer action groups can be divided into two broad categories: those that organize to correct a specific consumer abuse and then disband, and those that organize to address broader, more pervasive, problem areas and operate over an extended or indefinite period of time. A group of tenants who band together to dramatize their dissatisfaction with the quality of service provided by their landlord, or a group of irate community members who unite to block the entrance of a fast-food outlet into their middle-class neighborhood, are examples of temporary, cause-specific consumer action groups.

Work Groups

The sheer amount of time that people spend at their jobs, frequently more than thirty-five hours per week, provides ample opportunity for work groups to serve as a major influence on the consumption behavior of members.

Both the formal work group and the informal friendship/work group have the potential for influencing consumer behavior. The formal work group consists of those individuals who work together as a team. Their direct and sustained work relationship offers substantial opportunity for one or more members to influence the consumer-related attitudes and activities of other team members. Members of informal work groups may influence the consumption behavior of other members during coffee or lunch breaks or after-hours meetings.

Social Class

Social class is more of a continuum, i.e., a range of social positions, on which each member of society can be place. But, social researchers have divided this continuum into a small number of specific classes. Thus, we go by this framework, social class is used to assign individuals or families to a social-class category.

Social class can be defined as The division of members of a society into a hierarchy of distinct status classes, so that members of each class have relatively the same status and the members of all other classes have either more or less status.

REFERENCE GROUPS

Reference groups are groups that serve as a frame of reference for individuals in their purchase decisions. This basic concept provides a valuable perspective for understanding the impact of other people on an individual's consumption beliefs, attitudes, and behavior. It also provides some insight into methods that Groups can be used to effect desired changes in consumer behavior.

A reference group is any person or group that serves as a point of companion (or reference) for an individual in the formation of either general or specific values, attitudes, or behavior. The usefulness of this concept is enhanced by the fact that it places no restrictions on group size or membership, nor does it require that consumers identify with a tangible group (i.e., the group can be symbolic: prosperous business people, rock stars, and sports heroes).

Reference groups that influence general values or behavior are called normative reference groups. An example of a child's normative reference group is the immediate family, which is likely to play an important role in molding the child's general consumer values and behavior (e.g., which foods to select for good nutrition, appropriate ways to dress for specific occasions, how and where to shop, what constitutes "good" value).

Reference groups that serve as benchmarks for specific or narrowly defined attitudes or behavior are called comparative reference groups. A comparative reference group might be a neighboring family whose lifestyle appears to be admirable and worthy of imitation (the way they maintain their home, their choice of home furnishings and cars, the number and types of vacations they take).

Both normative and comparative reference groups are important. Normative reference groups influence the development of a basic code of behavior; comparative reference groups influence the expression of specific consumer attitudes and behavior. It is likely that the specific influences of comparative reference groups are to some measure dependent upon the basic values and behavior patterns established early in a person's development by normative reference groups.

Reference Group Impact on Product and Brand Choice

In some cases, and for some products, reference groups may influence both a person's product category and brand (or type) choices. Such products are called pro- duct-plus, brand-plus items. In other cases, reference groups influence only the product category decision. Such products are called product-plus, brand minus items. In still other cases, reference groups influence the brand (or type) decision. These products are called product-minus, brand-Plus items. Finally, in some cases, reference groups influence neither the product category nor the brand decision; these products are called product-minus, brand-minus items. The idea of classifying products and brands into four groups in terms of the suitability of a reference group appeal was first suggested in the mid-1950s, along with an initial classification of a small number of product categories.

FAMILY INFLUENCES & DECISION MAKING

The family is a major influence on the consumer behaviour of its members. There are many examples of how the family influences the consumption behaviour of its members. A child learns how to enjoy candy by observing an older brother or sister; learns the use and value of money by listening to and watching his or her parents. Decisions about a new car, a vacation trip, or whether to go to a local or an out-of-town college are consumption decisions usually made within the context of a family setting. As a major consumption unit, the family is also a prime target for the marketing of many products and services.

(3) Suitable Family Lifestyles

Another important family function in terms of consumer behaviour is the establishment of a suitable lifestyle for the family. Family lifestyle commitments, including the allocation of time, greatly influence consumption patterns. For example, the increase in the number of married women working outside the home has reduced the time they have available for household chores, and has created a market for convenience products and fast-food restaurants.

Also, with both parents working, an increased emphasis is placed on the notion of quality time, rather than the quantity of time spent with children and other family members. Realizing the scarcity of quality family time, Hotels feature a variety of weekend packages targeted to couples and their children.

FAMILY DECISION-MAKING

Families use products even though individuals usually buy them. Determining what products should be bought, which retail outlet to use, how and when products are used, and who should buy them is a complicated process involving a variety or roles and actors.

Role Behavior

Families and other groups exhibit what sociologist Talcott Parsons called instrumental and expressive role behaviors.

Instrumental roles, also known as functional or economic roles, involve financial, performance, and other functions performed by group members.

Expressive roles involve supporting other family members in the decision making process and expressing the familys aesthetic or emotional needs, including upholding family norms.

Individual Roles in Family Purchases

Family consumption decisions involve at least five definable roles, which may be assumed by spouses, children, or other members of a household. Both multiple roles and multiple actors are normal. Marketers need to communicate with consumers assuming each of these roles, remembering that different family members will assume different roles depending on the situation and product. Children, for example, are users of cereals, toys, clothing, and many other products but may not be the buyers. One or both of the parents may be the decider and the buyer, although the children may be important as influencers and users.

Family Roles

For a family to function as a cohesive unit, roles or tasks-such as doing the laundry, preparing meals, setting the dinner table, taking out the garbage, walking the dog must be carried out by one or more family members. In our dynamic society, etc. family-related roles are constantly changing.

Key Family Consumption Roles

The roles played by the different family members will vary from product to product. While shopping in the market, a housewife comes across a new variety of juice that she buys for the family. Her decision to purchase does not directly involve the influence of other family members. She is the decider, buyer; but she may or may not be the preparer and is not the only user. In case of products such as television, car, music systems, furniture or any other product which is likely to be used by some or all the family members, the purchase decision is likely to be joint or group decision.

There are eight distinct roles in the family decision-making process. A look at these roles provides further insight into how family members act in their various consumption-related roles:

1. Influencers: Those family members who provide information and advice and thus influence the purchase. The housewife tells her family about the new eatery that has opened in the neighborhood and her favorable description about it influences her husband and teenaged children.2. Gatekeepers: Those family members who control the flow of information about a product/service thus influencing the decisions of other family members. The teenaged son, who wants a racing bicycle, may withhold from his father much of the relevant information on all brands except the one that he fancies, thereby influencing his fathers decision in flavor of his preferred brand.

3. Deciders: Family members who have the power to unilaterally or jointly decide whether or not to buy a product or service. The husband and wife may jointly decide about the purchase of a new refrigerator.

4. Buyers: Those family members who actually buy a particular product or service. A housewife may be the person who actually buys all the foodstuffs, rations and toiletries, which are consumed by all the family members.

5. Preparers: Those family members who transform or prepare the product into the form in which it is actually consumed. The housewife may prepare the family meal using raw vegetables, lentils, spices, oil and other ingredients.

6. Users: Those family members who use or consume a particular product or service. All family members may use the car, watch the television, and listen to the stereo music system

7. Maintainers: Family member(s) who service or repair the product so that it will provide continued satisfaction.PSYCHOGRAPHICS, VALUES AND LIFESTYLES

Psychographic segmentation divides the market into groups based on social class, lifestyle and personality characteristics. It is based on the assumption that the types of products and brands an individual purchases will reflect that persons characteristics and patterns of living. The following are examples of psychographic factors used in market segmentation:

Social class Is the single most used variable for research purposes, and divides the population into groups based on a socio-economic scale.

Lifestyle Involves classifying people according to their values, beliefs, opinions, and interests. There is no one standardised lifestyle segmentation model, instead market research firms, and advertising agencies are constantly devising new categories, which will best help target possible consumers of their clients products.

Personality The innate characteristics in an individual that make him or her unique. It is a picture of how a person is looked upon by others around him.Psychographic segmentation Provides information on personality, motives, lifestyles, geo-demographics

Groups consumers based on

Activities: work, hobbies, entertainment, shopping

Interests: family, home, community, fashion, media

Opinions: themselves, politics, economics, cultureConsumer lifestyle

It is a constellation of individual characteristics that reflect certain behaviors Participation in groups, activities, hobbies, volunteer activities

Commitments to certain behaviors Product constellationsSocial Class

Higher positions imply higher status. We can say that Social class is more of a continuum, i.e., a range of social positions, on which each member of society can be place. But, social researchers have divided this continuum into a small number of specific classes. Thus, we go by this framework, social class is used to assign individuals or families to a social-class category. We can now define social class as The division of members of a society into a hierarchy of distinct status classes, so that members of each class have relatively the same status and the members of all other classes have either more or less status.Factors showing social class differences

1. Authority

2. Income

3. Occupations and Achievement

4. Education

Characteristics of Social Classes:

1. Persons within a given social class tend to behave more alike

2. Social class is hierarchical

3. Social class is not measured by a single variable but is measured as a weighted unction of ones occupation, income, wealth, education, status, prestige, etc.

4. Social class is continuous rather than concrete, with individuals able to move into a higher social class or drop into a lower class.

PHYCHOLOGICAL FACTORS:

A persons buying choices are influenced by four major psychological factors ---motivation, perception, learning and beliefs and attributes.A. MOTIVATION

A person has many needs at any given time. Most psychogenesis needs are not intense enough to motive the person to act on immediately. A motive is a need that is sufficiently pressing to drive the person to act.

B. PERCEPTION

A motivated person is ready to act. How the motivated person actually acts is influenced by his or her perception of the situation. Perception is the process by which an individual selects, organizes and interprets in formation inputs to create meaningful picture of the world.

C. LEARNING

When people act, they learn. Learning involves changes in an individuals behavior arising from experience.

D. BELIEFS AND ATTRIBUTES

Through doing and learning, people acquire beliefs and attributes. They in turn influence their buying behavior. A belief is a descriptive through that a person holds about something. An attribute is a persons enduring favorable or unfavorable evaluations, emotional feelings and action tendencies toward some object or idea.

TYPES OF INVOLVEMENT

The two types of involvement are:

A) Situation

B) Enduring

Involvement has various facets of consumer behaviour such as search for information, information processing, and information transmission.

Situational Involvement

Situational involvement is temporary and refers to emotional feelings of a consumer, experiences in a particular situation when one thinks of a specific product.

Enduring Involvement

Enduring involvement is persistent over time and refers to feelings experienced toward a product category across different situations. For example, holidaymakers renting a resort for their trip are highly involved in their choice, but their involvement is temporary. Whereas involvement of a person whose hobby is bike racing endures overtime and affects his responses in any situation related to pre-purchase, purchase and post- purchase of sport bikes. It is observed that involvement is triggered by special situation in the case of holiday makers, but in the second case, in comes from, and is a part of the consumer.

The contrast between situational and enduring involvement is important. When marketers measure involvement they examine the extent to which it can be induced by the product or selling situation. After noticing the type of involvement they are facing, marketers work to control products or selling situations.

Information Transmission

Transmission of information is the extent to which greatly involved customers send information about the product to others. This is done usually through word of-mouth communication. The researchers have shown that if consumers are highly involved they talk about the product frequently than others. Satisfied consumers are likely to speak favourable about the product, while unsatisfied speak negatively. Therefore, marketers catering to highly involved consumers should attempt to enhance consumer satisfaction and decrease dissatisfaction. For example, customer happy with ONIDA television communicates the same to others through word-of-mouth.LEVELS OF CONSUMER DECISION MAKING

The consumer decision making process is complex with varying degree. All purchase decisions do not require extensive effort. On continuum of effort ranging from very high to very low, it can be distinguished into three specific levels of consumer decision making:

1 Extensive Problem Solving ( EPS )

2. Limited Problem Solving ( LPS )

3. Routine Problem Solving ( RPS )

1.Extensive Problem Solving ( EPS ) : When consumers buy a new or unfamiliar product it usually involves the need to obtain substantial information and a long time to choose. They must form the concept of a new product category and determine the criteria to be used in choosing the product or brand.

2.Limited Problem Solving ( LPS ) : Sometimes consumers are familiar with both product category and various brands in that category, but they have not fully established brand preferences. They search for additional information helped them to discriminate among various brands.

3.Routine Problem Solving ( RPS ) : When consumers have already purchased a product or brand , they require little or no information to choose the product. Consumers involve in habitual and automatic purchases.

Studying consumer behaviour enables marketing researchers to predict how consumers will react to promotional messages and to understand why they make the purchase decision they do. Marketers realized that if they know more about the consumer decision making criteria, they can design marketing strategies and promotional messages that will influence consumers more effectively. The importance of consumer behaviour made marketers to think of a separate branch in marketing research - Consumer research, to deal exclusively for consumer related issues. The current focus of consumer research is on study of underlying needs and motives in taking purchase decisions, consumer learning process and attitude formation process

CONSUMER DECISION MAKING PROCESS

The most important environment in which firms operate is their customer environment because the basic belief of marketing oriented company that the customer is the centre around which the business revolves. Therefore, marketing people need to understand the processes that their customers go through when making decision.

The consumer decision making process involves series of related and sequential stages of activities. The process begins with the discovery and recognition of an unsatisfied need or want. It becomes a drive. Consumer begins search for information. This search gives rise to various alternatives and finally the purchase decision is made. Then buyer evaluates the post purchase behaviour to know the level of satisfaction. The process is explained below with the help of diagram.

1. Need Recognition

When a person has an unsatisfied need, the buying process begins to satisfy the needs. The need may be activated by internal or external factors. The intensity of the want will indicate the speed with which a person will move to fulfill the want. On the basis of need and its urgency, forms the order of priority. Marketers should provide required information of selling points.

2. Information Search

Identified needs can be satisfied only when desired product is known and also easily available. Different products are available in the market, but consumer must know which product or brand gives him maximum satisfaction. And the person has to search out for relevant information of the product, brand or location. Consumers can use many sources e.g., neighbors, friends and family.

Marketers also provide relevant information through advertisements, retailers, dealers, packaging and sales promotion, and window displaying. Mass media like news papers, radio, and television provide information. Now a days internet has become an important and reliable source of information. Marketers are expected to provide latest, reliable and adequate information.

3. Evaluation of Alternatives

This is a critical stage in the process of buying. Following are important elements in the process of alternatives evaluation

a. A product is viewed as a bundle of attributes. These attributes or features are used for evaluating products or brands. For example, in washing machine consumer considers price, capacity, technology, quality, model and size.

b. Factors like company, brand image, country, distribution network and after-sales service also become critical in evaluation.

c. Marketers should understand the importance of these factors to consumers of these factor to consumers while manufacturing and marketing their products.

4. Purchase Decision

Outcome of the evaluation develops likes and dislikes about alternative products or brands in consumers. This attitude towards the brand influences a decision as to buy or not to buy. Thus the prospective buyer heads towards final selection. In addition to all the above factors, situational factors like finance options, dealer terms, falling prices etc., are also considered.5. Post- Purchase Behaviour

This behaviuor of consumer is more important as for as marketer is concerned. Consumer gets brand preference only when that brand lives up to his expectation. This brand preference naturally repeats sales of marketer. A satisfied buyer is a silent advertisement. But, if the used brand does not yield desired satisfaction, negative feeling will occur and that will lead to the formation of negative attitude towards brand. This phenomenon is called cognitive dissonance. Marketers try to use this phenomenon to attract user of other brands to their brands. Different promotional-mix elements can help marketers to retain his customers as well as to attract new customers.1. CONSUMPTION OF COKE PRODUCTS

A) Yes

B) No

SnoCriteriaResponsePercentage

1Yes9696%

2No44%

Total100100%

Interpretation:

Out of 100 samples, 96% of the people consume soft drink in which more of them are college going students. The remaining 4% of the people will never consume any soft drink. With the change in occupation and economic circumstances now a days people would like to have soft drinks.

2. DECISION IN BUYING THE PRODUCT

A) My self

B) Friend

C) Family D) Others

Sno Influencing factorResponse Percentage

1My self5454%

2Friend1919%

3Family2222%

4Others55%

Total100100%

Interpretation:

From the above graphical study it is observed that the maximum number of people take decisions on there own in buying the product and are not influenced by any reference groups like family or friends.

There are very few who take decision by their friends or family members.

Majority (54%) take decisions on their own.

3. BRAND PREFERENCE OF THE RESPONDENTSA) Thums up B) Coke C) Limca D) Sprite E) Fanta F) Maaza

SnoBrandsResponsePercentage

1Thums up1616%

2Coke1010%

3Limca1717%

4Sprite2222%

5Fanta1111%

6Maaza2424%

Total100100%

Interpretation:

From the above graphical study it is absorbed that Male have a good interest for the Cola flavors. COKE, THUMS-UP, are their favorite soft drinks. Alternatively they are choosing SPRITE and FANTA.

Fairly low percentage of the male segment is choosing the orange and lemon flavors. Here it is observed that the people who prefer the cola flavors alternatively they are choosing the clear lemon flavors.

Majority of the consumers (24%) prefer MAAZA

4. OCCASION TO PURCHASE SOFT DRINKA) SeasonsB) Birthdays C) Festivals D) PartiesE) Others

SnoOccasionResponsePercentage

1Seasons3030%

2Birthdays1616%

3Festivals1313%

4Parties2929%

5Others1212%

Total100100%

Interpretation:

From the above graphical study it is absorbed that mostly people intended for the purpose of party and also in seasons. Rest of the times, they buy at the time of Birthday parties and in festivals. For the household and other purpose it is 12%. They purchase this both for the guests and household.

Majority 59% of the people purchase for parties and also at the time of summer season.

5. PACKAGE PEOPLE PREFER

A) RGBB) TetraC) Pet

D) Can

SnoPackageResponsePercentage

1RGB4949%

2Tetra3030%

3Pet1313%

4Can88%

Total100100%

Interpretation:

Out of 100 people who preferred the packing of coca-cola 30% of the people preferred Tetra packing and all of them are school students, 49% of the people prefer RGB (return glass bottle) who want to consume there it self. 13% of the people prefer Pet bottles and 8% of the people CAN for using in the parties.

6. OPINION OF CONSUMERS ON COKE PRODUCTS A) Excellent

B) GoodC) SatisfyD) Poor

SnoCriteriaResponsePercentage

1Excellent1010%

2Good5050%

3Satisfy3636%

4Poor44%

Total100100%

Interpretation:

Out of 100 samples, 50% of the people appreciated the efforts of the coca-cola company is very good in making the drink very taste from others. They said that whenever they drink coca-cola they feel very happy. 36% has satisfied the consumers and the others 4% of the people said poor.

Majority (50%) of the people have very good opinion about the Coke products.

7. REASON FOR CONSUMPTION OF SOFT DRINK A) Social Status

B) Personal factors

C) Cultural factors

D) Economic Circumstances

SnoInfluencing factorResponsePercentage

1Social Status1414%

2Personal factors6464%

3Cultural factors1818%

4Economic Circumstances44%

Total100100%

Interpretation:

From the above graphical study it is absorbed that mostly people consume coke products because of personal factors like age occupation and life styles. Very few % of consumers think that consuming soft drink is a symbol of social status. Cultural factors & Economic Circumstances does not influence the consumption of soft drink.

Majority (64%) of the consumers are influenced by personal factor.

8. PURCHASE BEHAVIOR OF SOFT DRINKSA) AvailabilityB) FlavorC) PriceD) Brand

SnoCriteriaResponsePercentage

1Availability1616%

2Flavor5656%

3Price1010%

4Brand1818%

Total100100%

Interpretation:

From the above graphical study it is absorbed that mainly people prefer flavor of coke products. Very few consumers prefer brand. 10% of people buy based on price. There are also some people who are purchasing the soft drink according to the availability.

They dont mind about the brand although look for promotions.

Majority of the consumers (56%) purchase soft drinks based on flavors.

9. AVAILABILITY OF COKE PRODUCTS IN THE MARKET.

A) Excellent

B) Good

C) Satisfy

D) Poor

SnoCriteriaResponsePercentage

1Excellent1818%

2Good4949%

3Satisfy2626%

4Poor77%

Total100100%

Interpretation:

From the above graphical study it is absorbed that consumers are very happy with the availability of the coke products in the market. 49% of the consumers are happy with the distribution of coke products by the company.

26% of the consumers are satisfied by the availability of coke products. Only 7% of the consumers are disappointed with the availability of coke products.

10. ADVERTISEMENT IN BUYING OF COKE PRODUCTS.A) Strongly Agree

B) Agree

C) Disagree D) Strongly Disagree

E) Neutral

SnoCriteriaResponsePercentage

1Strongly Agree1818%

2Agree5252%

3Disagree1010%

4Strongly Disagree99%

5Neutral1111%

Total100100%

Interpretation:

Out of 100 samples, 52% of the people agreed that advertisements help the consumers to buy soft drinks. Very few % of people disagreed to the impact of advertisements in buying of coke products. Many people appreciated the advertisements of the Coca Cola products.

They said that advertisements are very impressive.

11. ACTIVITIES THAT HELP IN THE INCREASE OF CONSUMPTION OF COKE PRODUCTS.

A) Decrease in price

B) Increase in advertisement C) New product

D) All

SnoCriteriaResponsePercentage

1Decrease in price4040%

2Increase in advertisement2222%

3New product3232%

4All66%

Total100100%

Interpretation:

From the above graphical study it is absorbed that mainly people are concentrating on price and form my study it is noticed that mainly people expressed their opinion that they will increase their buying behavior if the company decreases the price.32% of the consumers interested in new products. 22% of the consumers have an opinion that advertisements help in the increase of consumption of coke products.

12. CHANGE OF BRAND IN THE FUTURE.

A) Yes

B) No

SnoCriteriaResponsePercentage

1Yes6060%

2No4040%

Total100100%

Interpretation:

From the above graphical study it is absorbed that mostly of the consumers are loyal to brand. Out of the 100 samples collected 60% of the consumers said that they would buy coke products only in the future.

40% of the consumers may change their brand in the future.

13. PLACE WHERE PEOPLE LIKE TO CONSUME.

A) Hotels

B) Cool Points C) General stores D) Restaurants

E) Home

SnoPlaceResponsePercentage

1Hotels2929%

2Cool Points3131%

3General stores2525%

4Restaurants77%

5Home88%

Total100100%

Interpretation:

From the above graphical study it is absorbed that consumers prefer cool points rather than other sources. This is easy and eye catching to find there favorite soft drinks. Hotels and general stores are the places where people can get all types of soft drinks. Very few % of consumers would like to consume at restaurants and at homes.

Majority of the consumers (31%) pickup soft drinks from racks in cool points so that they can choose the preferred one.

14. PURCHASE OF COKE PRODUCTS.

A) Daily

B) Weekly

C) Monthly

D) Very Rare

SnoPurchaseResponsePercentage

1Daily1212%

2Weekly2626%

3Monthly3131%

4Very Rare3131%

Total100100%

Interpretation:

From the above graphical study it is absorbed that 31% of the consumers purchase monthly and 31% very rarely. 26% of the people are purchasing weekly they are young segment and it is also noticed that majority of them are male. 12% of people purchase daily.

FindingsThe following findings have taken from data analysis and interpretations

96% of the people consume coke products than any other soft drinks.

Out of the 100 samples collected Maaza and Sprite are having maximum mar