A COMPARATIVE STUDY ON CONSUMPTION CONSUMPT ION PATTERNS OF SOFT DRINKS AND FRUIT JUICES
Submitted In partial fulfillment of the requirements requirements For the Award of the Degree of Bachelors of Business Administration Administration (2006-2009)
Guided By:
Submitted By:
(Ms. Poonam Chawla) (Lecturer )
Sachin Singal Roll No.: (0641471706) (0641471706)
MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIES (Affiliated from Guru Gobind Singh Indraprastha University )
1
Certificate This is to certify that the project entitled “A Comparative study on consumption pattern patternss of Soft Soft Drinks Drinks and Fruit Juices Juices ” done by Mr. Mr. Sachin Singal, Roll no. 0641471706 is an authentic work carried out by him at Maharaja Agrasen Institute of
Management Studies under my guidance. The matter embodied in this project work has not been submitted earlier for the award of any degree or diploma to the best of my knowledge and belief.
Date:
Signature of the guide (Ms. Poonam Chawla) (Lecturer)
2
Acknowledgement
I would like to thanks Dr. N.K Kakkar (Director) who has been a constant source of inspir inspirati ation on and my specia speciall thanks thanks to Ms. Poonam Chawla Chawla (proje (project ct guide guide from from the institute) for her extensive guidance, cooperation and support. Finally, I wish to express my gratitude to all those who have in one way or other helped me in the successful completion of my project report.
SACHIN SINGAL
3
EXECUTIVE SUMMARY Soft Drinks were common preference among all the individuals before juices were being introduced,
With the changing lifestyle and income levels, people are shifting their consumption patterns and have therefore become more health conscious thus leading to increase in demand of juices.
Market Research is based on some underlying parameters like: •
Changing consumption pattern
•
Health factor
•
Status consciousness
•
Varying lifestyle
The basic subject matter of the research, comparative analysis of Soft Drinks and Juices is focused to study the mind/taste of different age group of people. The study starts with determining the major players in the soft drinks and the juices market market,, their their overall overall consum consumpti ption on pattern pattern among among the people people and ends ends up with with the conclusion as per the state of mind of the average rational human being.
4
TABLE OF CONTENTS
Certificate from the Institute
Acknowledgement
Executive Summary
Chapter-1 Introduction
Page No
1.1 Beverage
8
1.2 Overview of the Industry
11
1.3 Recent issues
14
1.4 Study of growth of of Soft Drink market
20
1.5 Major players in Soft Drinks segment: Coca-cola
21
Fanta
22
Limca
23
Sprite
24
Thums up
25
Maaza
26
Pepsi
27
1.6 Study of growth of of Fru Fruit Dr Drink market
28
1.7 Major players in Fruit Drink segment:
Dabur Real
29
Godrej
30
Pepsi Tropicana
31
Leh berry From Ladakh Foods
32
Parle’s Frooti &Appy
33
Chapter-2 Research Methodology 2.1 Methodology
35
5
2.2 Purpose Purpose of the study
35
2.3 Objectives Objectives of the study
36
2.4 Scope of the study
37
2.5 Research Design
37
2.6 Sampling Technique used
38
2.7 Selection Selection of Sample Size
38
2.8 Sources of Data collection
38
2.9 Statistical Tools Used
39
Chapter-3 Data Analysis and Findings
40
Chapter-4 Conclusion and Suggestions
53
Annexure
57
Questionnaire
Bibliography
61
6
INTRODUCTION
7
BEVERAGE What is beverage? A drink , or beverage , i s a liquid specif specifica ically lly prepar prepared ed for human for human consumpt consumption ion.. 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 be verage order?" or A 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 beverages An alcohol alcoholic ic bevera beverage ge is a drink drink contai containin ning g ethanol, ethanol, common commonly ly known known as alcoho alcohol, l, althoug although h in chemist chemistry ry the defini definitio tion n of an alcohol includ includes es many other other compound compounds. s. Alcoholic beverages, such as wine, wine, beer , and liquor have been part of human culture and development for 8,000 years.
2. Non-alcohol beverages
8
NonNon-al alco cohol holic ic bever beverag ages es are are drin drinks ks that that woul would d norma normall lly y cont contai ain n alcoh alcohol ol,, such such as beer as beer and 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 drinks The 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 but often carries conn connot otat atio ions ns
of
alco alcoho holi licc
cont conten ent. t.
Beve Bevera rage gess
like like colas, colas, spar sparkli kling ng
wate water r , iced
tea, tea, lemonade, lemonade, squash, and frui fruitt are are among among the the most most commo common n types types of soft soft drin drinks ks,, while hot chocolate, chocolate, hot tea, coffee, coffee, milk , tap water, alcohol, alcohol, and milkshakes do not fall into this classification. Many carbonated soft drinks are optionally available in versions sweetened with sugars or with non-caloric sweeteners. sweeteners.
4. Fruit juice Juice Juice is a liquid natura naturally lly contain contained ed in fruit or vegetable or vegetable tiss tissue ue.. Juic Juicee is prepa prepare red d by mechanically mechanically squeezing or macerating or macerating fresh fruits or vegetables without the application of heat heat or solv solven ents ts.. For For examp example le,,orange orange juice juice is the the liqu liquid id extr extrac actt of the 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 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 inconcentrate form, sometimes frozen, requiring the user to add water to water to reconstitute the liquid back to its "original state"
9
5.Hot beverages Hot beverages, including infusions. Sometimes drunk chilled.
Coffee-based Coffee-based beverages
Cappuccino
Coffee
Espresso
Café au lait
Frappé
Flavored coffees (mocha etc.)
Latte
Hot chocolate
Hot cider
Tea-based beverages
Flavored teas (chai etc.)
Green tea
Pearl milk tea
Tea
Herbal teas
Mulled cider
Yerba Mate
Roasted grain beverages
Sanka
6.Other
Some 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 10
OVERVIEW OF THE INDUSTRY
Th e
beverage
market
is
worth
$55
billion
worldwide.
The tides are turning for many beverage categories. While the carbonated soft drink and beer categories are merely treading water with flat sales, the energy drink category is surging ahead like never before. Bottled water, ready-to-drink coffee, ready-to-drink tea and sports drinks follow close behind with substantial sales increase- drinks without added sugar, no beer, along with developments in juice drinks and dairy-based drinks, are helping to turn around sales in these categories. What follows is a category-by-category look look at the state state of the bevera beverage ge indust industry ry,, includ including ing the top brands, brands, new product products, s, innovations
and
future
trendsetters.
In order order to be succ succes essf sful ul in the the mark market etpla place ce,, one has has to thin think k in term termss of heal health th innovation, flavor innovation, ingredient innovation and specific age groups. These are t he
factors
that
will
shape
t he
future
of
the
beverage
industry.
“Today’s consumers are concerned with overall health and wellness. As a result, there is signif significa icant nt impact impact on food food and beverag beveragee purchas purchases. es. Many studies studies have shown shown that that consumers are as concerned with good health as they are about maintaining a high quality of life.”
Do you know what type of new beverage consumers are most likely to try? Do you know wher wheree they hey are are most most like likely ly to pick pick thos thosee prod produc uctts up? up? Do you know know why why?
Beverage Industry wanted to know the answers to these questions and to delve deeper into the ever-increasing number of new product launches in the beverage market. “The soft drink industry is training people to seek out new products, even the big guys are coming out with limited-edition flavors, and consumers are beginning to see that there is
11
more flavor activity going on in the category. Whether that really nets anybody any sales gains is another thing, but it is teaching consumers to seek out and try new products. It’s also
trying
to
create
some
excitement
there.”
In spite of several challenges and restrictions faced by this industry, it is a ‘roll’ like never before. Customer preferences may have shifted, but they are still always on the look out for a can of ‘coke’ or a new ‘flavored’ drink to quench their thirst.
INDIAN BEVERAGE MARKET The size of the Indian food processing industry is around $ 65.6 billion, including $20.6 billion of value added products. Of this, the health beverage industry is valued at $230 million; bread and biscuits at $1.7 billion; chocolates at $73 million and ice creams at $188 million. The size of the semi-processed/ready-to-eat food segment is over $1.1 billion. Large biscu biscuits its & confecti confectioner onery y units, units, Soya proces processin sing g units units and starch starch/gl /glucos ucose/s e/sorb orbito itoll producing units have also come up, catering to domestic and international markets. The three largest consumed categories of packaged foods are packed tea, biscuits and soft drinks. The Indian beverage industry faces over supply in segments like coffee and tea. However, more than half of this is available in unpacked or loose form. Indian hot beverage market is a tea dominant market. Consumers in different parts of the country have heterogeneous tastes. Dust tea is popular in southern India, while loose tea in preferred in western India. The urban-rural split of the tea market was 51:49 in 2000. Coffee Coffee is consumed consumed largely largely in the southern states. The size of the total packaged coffee market is 19,600 tones or $87 million. The total soft drink (carbonated beverages and juices) market is estimated at 284 million crates a year or $1 billion. The market is highly seasonal in nature with consumption varying from 25 million crates per month during peak season to 15 million during off-season. The market is predominantly urban with 25 per cent contribution from rural areas. Coca cola and Pepsi dominate the Indian soft drinks market. Mineral water market in India is a 65 million crates ($50 million) industry. On an average, the monthly consumption is estimated at 4.9 million crates, which increases to 5.2 million during peak season.
12
13
RECENT ISSUES
1. Xtazy, another energy drink for the Indian market The Indian market for energy drinks was estimated recently to have a size of Rs 500 crore, about 90 million Euros. The market which is so far dominated by Red Bull, is attra attract ctin ing g vario various us new new play player erss whic which h want want to get a shar sharee in a grow growin ing g busi busine ness ss..
One of the aspirants is Xtazy, an energy drink from the US. “Xtazy is the forth largest energy drink inthe US”, says Rohan Malhotra, Managing Director of R. M. Indian Liquor Pvt. Ltd., the exclusive importer for Xtazy. Malhotra has launched Xtazy already in Eastern India, and was looking now for a distributor in the Delhi area, when FII spoke to him
during
IFE
fair
in
Delhi
recently.
In order to take on Red Bull and get a share of 20% from their business, Malhotra wants to offer better conditions to distributors. “We provide a margin of 6-8% to a distributor, who thus can earn about Rs 6 a can”, Malhotra says. “ This is more than what Red Bull offers which is only about 2 – 3 Rs per can.” Xtazy is available in cans of 350 ml, thus more than the usual 250 ml of other energy drinks, and will be priced with a MRP of Rs 85. Four variants are offered, Cranberry Blast, Sugar Free Passion FruitPineapple,
Orange
Blast
and
Lime
Blast.
Malhotra has planned several marketing measures to promote Xtazy, like PoS actions, coupons and direct marketing in a first round, and night parties in a second round. In marketing communication, he is highlighting not only the variants, but also health effects as the USPs of Xtazy, which are derived from ancient herbs used in the drink like gingko and guarana. The extract of gingko biloba leaf has been shown to dilate blood vessels and has the abilit ability y to increa increase se periphe peripheral ral blood blood circul circulati ation, on, especi especiall ally y to the brain, brain, the company writes in a leaflet. Guarana from Brasil would serve to promote weight loss by increasing
t he
metabolic
rate
14
and
reducing
t he
appetite.
Besides the US, Malhotra says, Xtazy would be marketed also in Israel, Ukraine and in Turkey and would soon be launched in China.
2. Australia-based "Aromas" launches first coffee store in India. AustraliaAustralia-based based "Aromas," "Aromas," one of the leading leading coffee chain shops, shops, launched launched its first café outlet in India at Hiranandani, Powai, and Mumbai. The company also tied up with Ideal Hospitality Private Ltd (IHPL), which would own the brand in the country and south-east Asia.
Jayant Mahiskar Mahiskar,, chairman chairman and MD, IHPL, IHPL, said, "Aromas is being launched launched keeping in mind the true coffee connoisseurs. We aim at targeting the youth and corporate at our outlets and Powai with a mix of residential and office complexes was a natural choice. The coffee has been created from selection of the original beans and blended to suit all tastes. Aromas ensures freshness and fullness of flavor." flavor." According to the agreement with Aromas,
IHPL
will
pay
about
1.5%
of
t he
gross
revenue
earned.
Further, the company has decided to invest about Rs. 50-75 crore in the next three years to expand its footprint with 99 outlets in India.
3. China rejects Coke bid to take-over major juice maker China has rejected Coca-Cola's $2.5 billion bid to buy a major Chinese juice maker. The purchase of Huiyuan Juice Group Ltd would have been the biggest foreign acquisition of a Chinese company to date. The proposed purchase was rejected on anti-monopoly grounds,
t he
Chinese
commerce
ministry
announced
on
its
website.
CocaCoca-Co Cola la's 's bid bid in Sept Septem embe berr prom prompt pted ed an outc outcry ry by nati nation onal alis ists ts who who urged urged the the government to bar foreigners from acquiring one of China's most successful homegrown brands. Rival juice producers warned that the acquisition would give Coca-Cola too dominant a position in China's beverage market. A Coca-Cola spokesman in Hong Kong
15
learned of the rejection of the sale had no immediate comment. Huiyuan's founders and major
shareholders
already
had
endorsed
the
sale.
If Coke were to take over Huiyuan, it will dominate the soft drinks market in China, which not only hurts consumers, but also other sector participants. Huiyuan controls more than a tenth of the Chinese fruit and vegetable juice market that grew 15% last year to $2 billion.
Coca-Cola
has
a
9.7%
share
and
dominates
in
diluted
juices.
According According to analysts analysts China's ruling ruling on Coke could cut both ways in that Chinese firms that have been making increasingly high profile acquisitions abroad may run into trouble of their own.
4. Pepsi's Slice kicks off the new season with 'Aamsutra' PepsiCo's popular mango juice drink brand- Slice kicks off the 2009 season with it's new 'Aamsutra'
concept.
According to Homi Battiwalla, business head, juice & juice drinks, PepsiCo India, Slice had seen powerful consumer momentum post the re-launch of 2008. The new winning formulation has been appreciated ap preciated by consumers. Aamsutra has driven strong disruption in the juice and juice drink category. category. All of this has made Slice the fastest growing mango drink
brand
in
the
country.
"South India is the lead market for mango drinks in the country. Andhra Pradesh is the biggest mango market and also the fastest growing market for Slice and mango drinks in the country. Tamil Nadu is amongst the top three states and Slice is the market-leader in Tamil
Pepsi
Nadu,"
has
no w
opted
for
he
a
new
brand
ambassador,
added
Katrina
Kaif.
"The creative thought behind the new communication was to further enhance the Slice exper experie ienc ncee into into dime dimens nsio ions ns of pleas pleasur ure, e, sens sensual ualit ity y and and indul indulgen gence ce.. Last Last year year's 's commercial was about enumerating the principles of 'Aamsutra' or the art of experiencing pure mango pleasure with the new Slice. This year, the commercial portrays the next
16
level to bring alive the mango indulgence, stated Hari Krishnan, Vice President, JWT. The company has now opted for a 360 multimedia campaigns involving digital, print, radio, impact outdoors and sampling in core markets.
5. Parle Agro launches lemon flavoured drink "LMN" Parle Agro, Agro, one of the leading food & beverage beverage companies in India, has launched a new fruit-based lemon drink LMN in the non-carbonated segment. The new brand is a natural lemon juice drink and the only brand in India with a taste closest to home made, fresh lime lime water water (Nimbu (Nimbu pani). pani). Accordin According g to the company company,, LM LMN N will will offer offer consume consumers rs a healthy, refreshing drink with the goodness of vitamin C. Every summer, the Indian beverage market has seen cola majors battle it out. This summer, the launch of LMN will see the cola wars taking a back seat and the battle spilling over to the non-cola segment, to be more precise in the nimbu paani category. PepsiCo India last week launched a nimbu
pani
drink,
Nimbooz,
under
the
7Up
brand
On the occasion of LMN's launch, Nadia Chauhan, joint managing director and CMO, Parle Agro, said, "Nimbu pani has traditionally been India's most commonly consumed cold beverage. In fact the idea of a branded lemon drink is so simple that you would wonder why nobody thought of it earlier. The challenge for us was packaging a natural p prroduc oductt
whil whilee
ret retaini aining ng its its
fres resh, ori origina ginall
tast tastee
thro throug ugho hout ut its shel shelff
life life." ."
LMN will be available in 110 ml Tetra, 200 ml Tetra and 500 ml PET packs priced at Rs 5, Rs 10 and Rs 23 respectively. The company aims to touch a turnover of Rs 3000-3500 crore
by
2011.
The company will target both (youth and adult) segments of consumers to turn them into brande branded d consume consumers rs of nimbu nimbu pani. pani. Beside Besidess this this LMN will also also target target an emergi emerging ng segment of consumers who are looking for a healthy and refreshing beverage in the country. "For the last 20 years, Parle Agro has been the market leader in fruit based bevera beverages ges,, we have constan constantly tly worked worked keeping keeping in mind mind Indian Indian prefer preferenc ences es while while formulating products that cater to the Indian palate. It is without any doubt that only an Indian company can understand what real nimbu pani tastes like and what the Indian
17
consumer
wants
in
a
packaged
offering,"
Chauhan
added.
Further, the company claims that packaged nimbu pani will have tremendous growth potential, higher than other packaged drinks mainly because of a major shift in consumer behavior. Today, the beverage consumer is looking for hygiene, convenience, refreshing taste, affordability and year-round availability. The name LMN is derived from the SMS version of the word lemon. Parle Agro also owns other fruit drink brands like Frooti, Appy Fizz and packaged drinking water, Bailey.
6. PepsiCo launches 'Nimbooz,' packaged lemon juice with no fizz and artificial flavours PepsiCo India has launched its packaged nimbu paani, Nimbooz, under its 7Up brand. The home-made nimbu paani paa ni or lime juice has been specially created to suit Indian tastes.
The lemon juice, no fizz and artificial flavours, is available in trendy, convenient packs.
The drin drink k offe offers rs grea greatt valu valuee to cons consum umer erss in thre threee pack packagi aging ng form format atss of 200 200 ml returnable glass bottles (RGB), 350 ml PET and 200 ml Tetra attractively priced at Rs 10, Rs
15
and
Rs
1 0,
respectively.
According to Ms Punita Lal, Executive Director- Marketing, PepsiCo India, Nimbooz, is specially
developed
to
suit
Indian
tastes
and
preferences.
"Nimbooz is an affordable offering for consumers on the go because of its ready-to-drink format that is both convenient and hygienic. The proposition of the Indian refresher perfectly captures the mass appeal of this product and will certainly drive consumer conn connec ect, t,
state tated d
Ms
Alpa Alpana na
Titus itus,,
Exec Ex ecut utiive
VP-F VP-Fllavou avours rs,,
Peps PepsiiCo
Indi ndia.
PepsiCo has drawn up an intensive consumer activation campaign to market Nimbooz. The 360 degree marketing communication plan will revolve around building awareness through multi-city launches and road shows, comprehensive 3D activation, leveraging Out-of-Home (OOH) media, radio, press and outdoors. Aggressive trial generation and
18
sampling initiatives will also be taken forward across major cities of the country. A special 'Nimbooz Highway Gadi' has been created that will visit the four major highways connecting Delhi to Jaipur, Dehradun, Agra to drive trails and consumer education.
7. Coke launches fruit-flavoured Fanta Apple nationally After successfully introducing it in southern markets last year, Coca-Cola India has launched its fruit-flavoured soft drink d rink 'Fanta Apple' nationally. nationally. The product is available in 200 ml and 300 ml returnable glass bottles and also in 500 ml PET pack priced at Rs 8, Rs
10
and
Rs
22
respectively.
During During the Fanta Fanta Apple launch launch in October October 2008, 2008, Venkate enkatesh sh Kini, Kini, market marketing ing vicevice president, Coca-Cola India, said that the company had planned to reach about 3.5 lakh customers customers with sample apple flavoured flavoured drink to extend its market leadership leadership in the fruit flavoured
segment
in
Andhra
Pradesh
and
Tamil
Nadu.
"As per consumer research, we have found that after orange, apple is the most preferred fruit in the country and Fanta Apple has been developed specially for the Indian palate," Kini said on Monday. According to experts, the nationwide launch of Fanta Apple is a part
of
t he
company's
$250
million
business
plan
for
th e
country.
Fanta Fanta Apple Apple is the the secon second d flav flavour our afte afterr Fant Fantaa Oran Orange ge und under er "Fant "Fanta" a" bran brand d of the the company. "We have had an excellent response down south with a reused value to the drink and with the national launch of Fanta Apple, we are stepping stones to extend Coca Cola India's market leadership in the fruit-flavoured sparkling drink segment," Kini added. The company has also announced Bollywood actress Genelia D'Souza as the new brand
ambassador
of
t he
Fanta
brand.
According to reports, the current expected Indian soft drink market is about Rs 6,000 crore, in which the company shares about 50% market with its various brands like Coke, 7 Up, Fanta, Sprite and Thums Up.
19
STUDY OF GROWTH OF SOFT DRINK MARKET
SOFT DRINKS Carbonated drinks are dominated by artificial flavors based on cola, orange and lime with Pepsi and coca-cola dominating the market. The entire part of the drink is based on its artificial flavors and sweetening agents as no natural juice is used.
MARKET
•
Cola products account for nearly 61-62% of the total soft drinks market.
•
Two global majors’ Pepsi and coke dominate d ominate 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 c rores 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 in 1998-99 to 6230 million bottles in 1999-2000 industry source.
•
Growth Growth market this year is expected 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.
20
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 non alcoholic beverages in the world. In India, coca cola was the leading soft drink till 1977 when govt. policies necessitated its departure. Coca cola has made its return to the country in 1993.and made significant investment to ensure that the beverage is available to more and more people in remote as well as inaccessible parts of the world. Coca cola returned to India in 1993 and over the past ten years has captured the imagination of the nation, building strong association with cricket, the thriving cinema industry, music etc. coca cola has been very strongly associated with cricket, sponsoring the world cup in 1996. In 2002, coca cola launched the campaign,”Thanda Matlab coca cola”. in 2003,coke was available for just rs,5 crores in the country. country.
21
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 tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging on e to indulge in the moment.
22
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 three decades. The brand has been displaying healthy volume growing year on year and limca continues to be leading flavoring soft drinks in the country. country. Dive into the zingy refreshment of limca and walk away a new person.
23
SPIRITE: SPIRITE SPIRIT E BHUJA BHU JAYE YE PYAAS PYAAS BAKI BAK I SAB BAKWAAS!!! 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 they are and to obey their thirst.
24
THUMS UP: TASTE THE THUNDER!!!
Strong cola taste, exciting personality. 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.
25
MAAZA: YAARI YAARI DOSTI TAAZA MAAZA!!! MAAZA!! !
Maaza was launched in 1976. In 1993, maaza was acquired by coca cola India. Maaza curre current ntly ly domin dominat ates es the the frui fruitt drin drink k catego category ry.. Over Over the the years years,, maaz maazaa has has becom becomee synonymous with mango. “Taaza Mango, Maaza mango, Botal mei aam, maaza hai naam”.consumers regard maaza as wholesome, natural, fun loving drink real experience of fruit.
The campaign builds on the existing equity of the brand and delivers a relevant emotional benefit to the moms rightly captured in tagline, “yaari dosti, and taaza maaza”.
26
PEPSI: YEH DIL MAANGE MORE!!!
Pepsi cola is a carbonated carbonated beverage that is produced and manufactured 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)
27
STUDY OF GROWTH OF FRUIT DRINK MARKET FRUIT JUICES Branded fruit juice market in India holds ho lds an immense potential.
Usually confused and considered synonymous with non-aerated drinks, fruit pulps, juices and squash are high sugar beverages, which are centrifuged and filtered to give a semiclear appearance.
In the past, this sector enjoyed an excise exemption, keeping cost at minimal. However the withdrawal of exemption has inflated costs and can affect growth, with dramatic change possible on reintroduction of excise exemption.
MARKET
•
The organi organized zed fruit fruit beverage beverage market market is estim estimated ated at Rs.500 Rs.500 crores crores market market.. (Nectars, drinks and juices combined).
•
The market has grown at a 20% to 25% rate.
•
Of this, more expensive juices segment has grown at rate of 40%this year. It accounted for only 15% of the fruit beverage 3 years back.
•
In –home consumption of juices has gone up from 30%, three years back to 80%today.
•
Mango based drinks account for two thirds of fruit drinks industry.
28
MAJOR PLAYERS IN THE FRUIT DRINK SEGMENT
DABUR REAL
Dabur’s flagship brand real fruit juice is a market leader in packaged fruit juice category. Real was launched in 1996 and the brand has carved a niche for itself by claiming to be the only fruit juice in packaged form .i.e.100%preservative free. Real, with market share of 57% comes in nine flavors: •
Orange
•
Mango
•
Pineapple
•
Mix fruit
•
Grape
•
Guava
•
Litchi
•
Tomato
•
Cranberry
Real Active is 100%fruit juice with no added sugar and is ava ilable in following variants:
29
•
Orange
•
Apple
•
Orange- carrot
GODREJ
The food division of godrej industry produces and market fruit drinks, fruit nectar and sofit soymilk. Godrej’s brand JUMPIN comes in the following flavor:
•
Mango
•
Pineapple
•
Apple
•
Litchi
•
Orange
Godrej’s x’s x’s is a range of fruit nectar with more fruits. It’s available in following flavors:
•
Orange
•
Apple
•
Grape
30
PEPSI’S TROPICANA
Tropicana brand fruit juice enjoys a market share of 25% and has registered a double digit growth and has outpaced the growth of fruit juice market in India. It is available in following flavors:
•
Orange
•
Apple
•
Grape
•
Cranberry
31
LEH BERRY
It is a product from Ladakh Foods. Its first fruit juice in Delhi and it's selling it in the more affluent parts of town. It enjoys a market share of 4% and is available in a variety of flavors:
•
Pineapple
•
Apple
•
Mixed fruit
•
Orange
•
Blackcurrant
•
Mango
•
Guava
32
PARLE’S FROOTI and a nd APPY
Frooti was launched back in 1985 and enjoys market dominance with 85% of market share. Parle’s Agro’s APPY, in 1996 had a market share of 5% in the fruit drink segment; in 2003 its new variant-APPY FIZZ was launched.
33
RESEARCH METHODOLOGY
34
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
.
According to Clifford Woody, “Resea “Research rch Methodo Methodology logy compri comprises ses of defini defining ng & redefi redefinin ning g problem problems, s, collect collecting ing,, organizing &evaluating data, making deductions &researching to conclusions.” 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 and suggestions.
PURPOSE OF THE STUDY The main aim of this research study is to analyze the preference of people (of different age groups) on consumption patterns of Soft Drinks and Fruit Juices.
35
OBJECTIVE OF THE STUDY •
To study the preferences of the people for soft drinks and fruit juices.
•
To find out the factor(s) that influences the consumer’s consumption of soft drinks and fruit juices.
•
To test the know-how of the consumers regarding regarding the various various existing existing brands of soft drinks and fruit juices.
•
To explore the next best beverage b everage after soft drinks and fruit juices.
•
To find out how the beverage b everage is positioned in the mind of o f the consumers.
36
SCOPE OF THE STUDY
•
This study is confined to the North West Delhi region covering areas of Paschim Vihar, Vihar, Pitam Pura, Rohini area, Punjabi Bagh.
•
Seasonal drinks are not considered in the study. study.
•
We are considering con sidering only canned juices.
•
We are not considering water & alcoholic alcoho lic drinks.
RESEARCH DESIGN A research design is a framework or blueprint for conducting the marketing research project. It specifies the details of the procedures necessary for obtaining the information needed to structure and/or solve marketing research problem. On the basis of fundamental objectives of the research we can classify research design into two general types:
EXPLORATORY RESEARCH
37
CONCLUSIVE RESEARCH
Exploratory research is one type of research design, which has its primary objective the provision of insights into, and comprehension of, the problem situation confronting the researcher. researcher. Conclusive research is designed to assist the decision maker in determining evaluating and selecting the best course of action to take in a given situation.
Conclusive research can be further divided into two types:•
Descriptive
•
Experimental
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, etc.
SAMPLING TECHNIQUE USED: This research has used convenience sampling technique. 1) Convenience sampling technique: Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are conve nient.
SELECTION OF SAMPLE SIZE: For the study, a sample size of 100 has been taken into consideration.
SOURCES OF DATA COLLECTION: 38
Research will be based on two sources: 1. Primary data 2. Secondary data
1) PRIMARY DATA: Questionnaire: Primary data was collected by preparing questionnaire and the people were randomly being requested to fill them.
2) SECONDARY DATA: Secondar Secondary y data data will will consist consist of differ different ent litera literatur tures es like like books books which which are publish published, ed, articles, internet and websites. In order to reach relevant conclusion, research work needed to be designed in a proper way.
STATISTICAL TOOLS USED The main statistical tools used for the collection and analyses of data in this project are: •
Questionnaire
•
Pie Charts
•
Bar Diagrams
39
DAT DATA ANALYSIS ANALYSIS & FINDINGS FIND INGS
40
Q1. What do you prefer to drink? (Tick any 1)
Particulars
No. of Respondents
Soft Drinks Fruit Juices Total
60%
Percentage
57 43 100
57% 43% 100%
57%
50% 43%
n o 40% p s e R 30% f o . o 20% N
Series1
10% 0% Soft Drink s
Fruit juic es es
ANALYSIS:
From the survey it was found that amongst a mongst 100 respondents a) 57% of of the the respondent respondentss prefer prefer Soft Drinks Drinks to to drink. drink. b) 43% of the responde respondents nts prefer prefer Fruit Fruit Juices Juices to drink. drink. 41
Q2. Frequency of consumption of your preferred drink in a week?
SOFT DRINKS
Particulars
No. of Respondents
Daily 2-6 times Above 7 Total
Percentage
28 23 6 57
49% 40% 11% 100%
60% 50%
49%
o p 40% s e R 30% f o . 20% o N
40%
Series1
11.00%
10% 0% Daily
2-6 t imes
Above 7
Weekly Consumption
ANALYSIS:
From the survey it was found that amongst a mongst 57 respondents. a) 49% of the respondents consume Soft Drinks daily. daily. 42 b) 43% of the respondents consume Soft Drinks 2-6 times. c) 11% of the responde respondents nts consume consume Soft Soft Drinks Drinks more more than 7 times. times.
FRUIT JUICES
Particulars
No. of Respondents
Daily 2-6 times Above 7 Total
Percentage
10 30 3 43
23% 70% 7% 100%
35 30 30 d n 25 o p s 20 e r f 15 o . o 10 N
Series1 10
3
5 0 Daily
2-6 times
Above 7
weekly consumption
ANALYSIS:
From the survey it was found that amongst a mongst 43 respondents. a) 23% of the responde respondents nts consume consume Fruit Juices daily. daily. b) 70% of the respondents consume Fruit Juices 2-6 times. c) 07% of the the respondents respondents consume consume Fruit Juices more than than 7 times. times. 43
Q3. On what occasions, do you often consume the Soft Drinks?
Particulars
No. of Respondents
Feeling Thirsty Parties / Celebrations Without any reason (just like that)
Others Total
Percentage
18 45 25
18% 45% 25%
12 100
12% 100%
Feeling Thirst Thirsty y 12%
18% Parties / Celebrations
25% Without any reason reason (just (just like that) 45%
Others
ANALYSIS:
From the survey it was found that amongst 100 respondents. a) b) c) d)
18% of the responde respondents nts consume consume Soft Drinks Drinks when when they feel feel thirsty thirsty.. 45% of the responde respondents nts consume consume Soft Drinks Drinks at at the time time of celebrations celebrations.. 25% of the the respondents respondents consume consume Soft Drinks without without any reason. reason. 44Drinks 12% of the the respondents respondents consume consume Soft Drinks Drinks on other other occasions. occasions.
Q4. On what occasions, do you often consume the Fruit Juices?
Particulars
No. of Respondents
Feeling Thirsty Parties / Celebrations Without any reason (just like that)
Others Total
Percentage
17 32 24
17% 32% 24%
27 100
27% 100%
Feeling Thirsty 17% 27% Parties / Celebrations
32% 24%
Without any reason (just like that) Others
ANALYSIS:
From the survey it was found that amongst 100 respondents. a) b) c) d)
17% of the respond respondents ents consume consume Fruit Fruit Juices Juices when they they feel thirst thirsty y. 32% of the respond respondents ents consume consume Fruit Fruit Juices Juices at the time time of celebrati celebrations. ons. 45 24% of the the respondent respondentss consume consume Fruit Fruit Juices Juices without without any reason. reason. 27% of the the respondent respondentss consume consume Fruit Fruit Juices Juices on other other occasions occasions..
Q5. What induces you to buy Soft Drinks?
Particulars
No. of Respondents
Price with quantity Health Drink Status symbol Taste Variety Total
35
Percentage
30 4 8 32 26 100
30% 4% 8% 32% 26% 100%
32
30
30
26
e d 25 n o p 20 s e r f 15 o . 10 o N
Series1 8 4
5 0
Price with quantity
Health Drink
Status symbol
Tas te
Variety
Factors
ANALYSIS:
From the survey it was found that amongst 100 respondents. a) b) c) d) e)
30% of the the respondents respondents consume consume soft drinks drinks because of its price. price. 04% of the the respondents respondents consume consume soft soft drinks because it it is a health health drink. 46 08% of the the respondents respondents consume consume soft soft drinks because it it is a status status symbol. symbol. 32% of the the respondents respondents consume consume soft drinks drinks because of its taste. taste. 26% of the the respondents respondents consume consume soft soft drinks because of of its variety variety
Q6. What induces you to buy Fruit Juices?
Particulars
No. of Respondents
Price with quantity Health Drink Status symbol Taste Variety Total
45
Percentage
13 40 15 22 10 100
13% 40% 15% 22% 10% 100%
40
40 s t 35 n e d 30 n o p 25 s e r 20 f o 15 . o N 10
22
Series1
15
13
10
5 0 Price with quantity
Health Drink
Status symbol
Tas te
V ariety
Factors
ANALYSIS:
From the survey it was found that amongst 100 respondents. a) b) c) d) e)
13% of the the respondents respondents consume consume fruit juices juices because because of its price. 40% of the the respondents respondents consume consume fruit fruit juices juices because because it is a health health drink. drink. 47 15% of the the respondents respondents consume consume fruit fruit juices juices because because it is a status status symbol symbol.. 22% of the the respondents respondents consume consume fruit fruit juices juices because because of its taste. taste. 10% of the the respondents respondents consume consume fruit fruit juices juices because because of its variety variety
Q7. If not a Soft Drink or a Fruit juice, which other beverage (other than water) tops your mind?
Particulars
No. of Respondents
Coffee Tea Shakes(Milk/Ice cream/Fruit)
Percentage
30 25 8 12 25 100
Lassi Sharbat Total
30% 25% 8% 12% 25% 100%
Coffee 25%
30%
Tea Shakes(Milk/Icecream/Fruit)
12% 8.00%
Lassi 25%
Sharbat
ANALYSIS:
From the survey it was found that amongst a mongst 100 respondents. a) b) c) d) e)
30% of of the the respond respondent entss prefe preferr coffee coffee.. 25% of of the the respond respondent entss prefe preferr tea. tea. 48kes.. 08% of of the the respond respondent entss prefe preferr Shakes Sha 12% of of the resp responde ondents nts pref prefer er Lass Lassi. i. 25% of of the the respond respondent entss prefe preferr Sharbat Sharbat
Q8. How do you rate canned juices as compared to fresh juices?
Particulars Equivalent to fresh juices Have artificial added flavor Healthy with preservatives
Total
No. of Respondents
Percentage
24 36
24% 36%
40 100
40% 100%
24% Equivalent to fresh juices
40%
Have Have artificial artific ial added flavor Healthy with preservatives 36%
ANALYSIS:
From the survey it was found that amongst a mongst 100 respondents. a) 24% of the the respondents respondents think think canned juices juices are are Equivalent Equivalent to fresh fresh juices. juices. b) 36% of the respondent respondentss think canned canned juices Have Have artificial artificial added added flavor. flavor. 49 c) 40% of the responde respondents nts think think canned canned juices juices are Healthy Healthy but have have preservatives.
Q9. How do you view Soft Drinks?
Particulars
No. of Respondents
As a health drink As a status symbol As an aid to put off thirst Any other
Percentage
4 8 55 33 100
Total
60
4% 8% 55% 33% 100%
55
50 n o 40 p s e r 30 f o . 20 o N 10
33 Series1
8 4
0 As a health drink
As a status symbol
As an aid to put off thirst
Any other
ANALYSIS:
From the survey it was found that amongst a mongst 100 respondents. a) 04% of the responde respondents nts view view Soft Soft Drinks Drinks as a health health drink. drink. b) 08% of the the respondents respondents view Soft Soft Drinks Drinks as a status status symbol. symbol. 50 c) 55% of the the respondents respondents view Soft Soft Drinks Drinks as an an aid to put put off off thirst. thirst.
Q10. How do you view Fruit Juices?
Particulars
No. of Respondents
As a health drink As a status symbol As an aid to put off thirst Any other
40 15 32 13 100
Total
45
Percentage 40% 15% 32% 13% 100%
40
40 35
32
o p 30 s e r 25 f 20 o . 15 o N 10
Series1 15
13
5 0 As a health drink
As a As an aid status to put off symbol thirst
Any other
ANALYSIS:
From the survey it was found that amongst 100 respondents. a) 40% of the responden respondents ts view view Fruit Fruit Juices Juices as a health health drink. drink. b) 15% of the the respondents respondents view Fruit Fruit Juices Juices as a status status symbol. symbol. c) 32% of the the respondents respondents view Fruit Fruit Juices Juices as an aid to put off off thirst. thirst. 51
Q11. Do advertisements affect your purchases?
Particulars
No. of Respondents
Yes No Total
Percentage
77 23 100
77% 23% 100%
23%
Yes No
77%
ANALYSIS:
From the survey it was found that amongst a mongst 100 respondents. a) 77% of the the respondents respondents think think that adverti advertisemen sements ts affect affect their their purchases. purchases. b) 23% of the the respondents respondents think think that adverti advertisemen sements ts do not affect affect their their purchases. 52
CONCLUSION, SUGGESTIONS AND LIMITATIONS
53
CONCLUSION Following are the concluding points taken into consideration after the conduct of the research study:
•
An important finding that emerged out of the survey was that 57%of people like to have soft drinks while 43% go for juices.
•
Through the research it was conveyed that weekly consumption of soft drinks is higher than the weekly consumption of juices.
•
A majority of the respondents consume soft drinks and fruit juices at the time of parties & celebrations.
•
Most of the respondents consume soft drinks because of its taste and price.
•
Most of the respondents responden ts consume fruit juices because beca use it is healthy.
•
As it is seen that canned Juices enjoys the largest market share though they do contain some preservatives but majority of the respondents consider it healthy. healthy.
•
Most of the respondents view soft drinks as an aid to put off thirst and fruit juice as a health drink.
•
Most of the respondents (77%) were of the strong view that advertisements affect their purchases and the rest (23%) were not at all affected by the advertisements.
54
SUGGESTIONS
•
With the changing lifestyle, people have started becoming more health conscious. Therefore, the fruit juice company’s should use appropriate marketing techniques thereby reducing the demand for soft drink in the future.
•
The survey shows that parties/celebrations are the places where these drinks are consumed mostly. The company’s must try to increase the sales by creating and focusing on more utilities so that their product is used more frequently.
•
As it is seen that people consider canned juices to be healthy with preservatives. preservatives. This shows that awareness level of the people is low and needs to be corrected. Therefore, various methods like campaigns by government, help by media, etc can be taken to change this.
55
LIMITATIONS
•
The study was confined to some areas of New Delhi only.
•
The study does not take into account the sales affected affected of the soft drink segment due to the entry of juices.
•
Retailers view and the companies view to the questionnaire were not available.
•
Time and cost constraints were also there.
•
Chances of some biasness could not be eliminated.
•
A Samples size of 100 has been use due to time limitations.
56
ANNEXURE
57
QUESTIONNAIRE PERSONAL DET DE TAILS
Name
- _________________
Age
- 15-25
25-35
35-50
Gender
- Male
Female
Occupation
- Student
Housewife
Business Business
Service
Hello! I am Sachin, a student of management school and am required to submit project on a comparative study of consumption of Soft Drinks and Fruit Juices. For the purpose, I am conducting the survey. survey. Will you please take a few minutes to answer some questions? I assure you that your answers will be kept completely confidential.
Q1. What do you prefer to drink? (Tick any 1) a) Soft Drinks b) Fruit Juices
Q2. Frequency of consumption of your preferred drink in a week? a) Soft Drinks, Daily
b) Fruit Juices, Daily
2-6 times
2-6 times
Above 7
Above 7
Q3. On what occasions, do you often consume the Soft Drinks? a) Feeling Thirsty b) Parties / Celebrations c) Without any reason (just like that) d) Others, please specify
________
Q4. On what occasions, do you often consume the Fruit juices? a) Feeling Thirsty
58
b) Parties / Celebrations c) Without any reason (just like that) d) Others, please specify
________
Q5. What induces you to buy Soft Drinks? a) Price with quantity quantity
______
b) Health Drink
______
c) Status symbol
______
d) Taste
______
e) Variety
______ _____ _
Q6. What induces you to buy Fruit Juices? a) Price with quantity quantity
______
b) Health Drink
______
c) Status symbol
______
d) Taste
______
e) Variety
______ _____ _
Q7. If not a Soft Drink or a Fruit juice, which other beverage (other than water) tops your mind? a) Coffee b) Tea c) Shakes (Milk/Ice-cream/Fruit) d) Lassi e) Sharbat
Q8. How do you rate canned juices as compared to fresh juices? a) Equivalent to to fresh fresh juices b) Have artificial artificial added flavor c) Healthy with preservatives
59
Q9. 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 other,, pleas pleasee speci specify fy ___ _______ _____ _
Q10. How do you view Fruit Juices? a) As a health drink b) As a status symbol c) As an aid to put off thirst d) Any other other,, pleas pleasee speci specify fy ___ _______ _____ _
Q11. Do advertisements affect your purchases? a) Yes b) No
Q12. Name any three brands of Fruit juices & Soft Drinks that are there in your mind at present? Soft Drinks
Fruit Juices
______
______
______
______
______
______
60
BIBLIOGRAPHY •
http://en.wikipedia.org/wiki/Beverage
•
www.foodindustryindia.com
•
http://fnbnews.com/article/detarchive.asp?articleid=25105§ionid=3
•
http://fnbnews.com/article/detarchive.asp?articleid=24983§ionid=3
•
http://fnbnews.com/article/detarchive.asp?articleid=24965§ionid=3
•
http://fnbnews.com/article/detarchive.asp?articleid=24849§ionid=3
•
http://fnbnews.com/article/detarchive.asp?articleid=25039§ionid=3
•
•
•
•
http://www.foodindustryindia.com/newfood/detailnews.jsp?n=Xtazy http://www.foodindustryindia.com/newfood/detailnews.jsp?n=Xtazy,%20anot ,%20anot her%20energy%20drink%20for%20the%20Indian%20market&id=598 http://fnbnews.com/redfr.asp?fn=/other/aboutus.asp&title=About%20Us#Foo d&beverage www.google.com Kothari C R, “Research and Methodology- Methods & Techniques”, New Age International (P) Ltd., 2004
61
