MARKETING RESEARCH

CONSUMER PREFERNCES

AND

CONSUMTION HABITS

IN SOFT DRINKS INDUSTRY

Research Proposal :

Scope of introduction of a lemon-lime soft drink a local soft drink firm. The product would to be positioned as a change of pace soft drink to be consumed by all soft drink users, including heavy cola drinkers.

Objective definition:

The objectives of this research are:

We have to find out the perception and the expectations of the existing consumers from the soft-drink industry.

To analyze whatever the factors that will affect the introduction of this new soft drink in the market including the target audience , competitors etc.

To implement the research methodology and research design in order to gather and understand the data received.

Research objective:

The objective of the research is to understand the concept of the introducing the lemon-lime soft drink in the market by perceiving its idea of methodology, sampling plan, time and cost.

Background of the soft drink industry:

The 50-bn-rupee soft drink industry is growing now at 6 to 7% annually. In India, Coke and Pepsi have a combined market share of around 95% directly or through franchisees. Campa Cola has a 1% share, and the rest is divided among local players.

There are two distinct segments of the market, cola and non-cola drinks. The cola segment claims a share of 62%, while the non-cola segment includes soda, clear lime, cloudy lime and drinks with orange and mango flavours.

Soft and aerated drinks were considered products for the middle class and the affluent. That segregation is no more valid. Soft and aerated drinks are consumed by all except those who cannot afford to buy any drink. An NCAER study says that 91% soft drink sales are made to the lower, middle and upper middle classes.The soft drink industry has been urging the government to categorise aerated waters (soft drinks) equitably with other consumer products of mass consumption and remove special excise duty.

The industry estimates that the beverage market should grow at twice the rate of GDP growth. The Indian market should have, therefore, grown by atleast 12%. However, it has been growing at a rate of about 6%. In contrast, the Chinese market grew by 16% a year, while the Russian market expanded at almost four times the rate of growth of the Indian market.

Research design:

Exploratory Research -

Secondary data research

Descriptive research -

Structured questionnaire for quantitative analysis

Personal interviews

Sampling design :

Target population: people ranging between 16-40 years of age.

Sampling techniques : Quota sampling

Total sample size : 30

Data analysis :

Once the surveys are complete, data will be analysed using SPSS software.

Data will be analyzed for prospects, insights and will be presented.

Data collection :

A team of students will float the questionnaire in the form of a Google Doc.

Data will also be collected by conducting personal interviews with in the institute and of people in the near by area.

These students would undergo mock interviews.

30% of data will be back checked through calling the respondents.

100% scrutiny of the questionnaire.

Limitations of the study:

Mainly respondents, have high rate of refusal and persuasion has to be done for filling up the questionnaire.

Time constraint

Careless responses by unwilling respondents.

Resources required :

Stationary expenses for printing of questionnaire, report and binding of the report.

Transportation expenses for employees high and take in negative.

Timeline :

S.No.

Submission

Date

1.

Stage I : Names of your group members and one-page note on topic

12/01/2014

2.

Stage II : Complete Research Proposal

(Problem definition, sampling plan, methodology etc.)

21/01/2014

3.

Stage III : Exploratory Research Findings & Questionnaire Design

30/01/2014

4.

Stage IV: Data Collection and Analysis

16/02/2014

5.

Stage V : Final Report

20/02/2014

6.

Stage VI: Report Presentation

23/02/2014- 02/03/2014

Cost of the research :

S.no .

Particulars

Samples (30)

Amount

1)

Photocopy questionnaire

30 x 60 paise

Rs 18

2)

Manhour travelling

Rs 300

Rs 300

3)

Final report (hard copy)

Rs 200

Rs 200

4)

Misc.

Rs 100

Rs 100

Total

Rs - 618

Deliverables :

A power point report on the findings of the study.

Detailed project report with analysis and suggestions.