Soumya Kanti Sarkar

 A STUDY ON THE IMPACT CONSUMER BEHAVIOUR TOWARDS LEADING CARBONATED SOFT DRINK BRANDS IN INDIA By Soumya Kanti Sarkar A Dissertation Submitted to the faculty of Globsyn Business School in Partial Fulfillments of the Requirements for the Post Graduate Diploma in Management April, 2017 DEDICATION I would like to dedicate this dissertation to my parents, all the faculty members of Globsyn Business School and all my classmates who have made these two years a memorable journey for me. A STUDY ON THE IMPACT CONSUMER BEHAVIOUR TOWARDS LEADING CARBONATED SOFT DRINK BRANDS IN INDIA By Soumya Kanti Sarkar Approved: Dr. Debraj Datta Internal Guide Associate Professor – Marketing Globsyn Business School CERTIFICATE FROM INTERNAL GUIDE Date: The Dean Globsyn Business School Kolkata West Bengal India Dear Sir, Sub: candidate for Post Graduate Management Course I have the pleasure of forwarding the following project dissertation. 1. Name of the Candidate: SOUMYA KANTI SARKAR 2. Title of Study: A study on the impact consumer behavior towards leading carbonated soft drink brands in India 3. Date of Submission: 4. Specialization Field: Marketing 5. Pages in Study: 28 I further certify the following: 1. The candidate has completed the work to my satisfaction. 2. This is an original work of the candidate and to the best of my knowledge has not been published anywhere else. 3. The use of existing works has been duly acknowledged. 4. The candidate has spent a minimum of 30 hours while conducting the study. The dissertation may now be evaluated for the purpose of awarding Postgraduate Diploma. Yours Sincerely, Internal Guide Name of the Guide: Dr. Debraj Datta DECLARATION OF ORIGINALITY This is to declare that the work is entirely my own and not of any other person, unless explicitly acknowledged (including citation of published and unpublished sources). The work has not previously been submitted in any form to Globsyn Business School, or to any other institution for assessment for any other purpose. I further declare that I have devoted a minimum of 30 hours to study this topic. Name: Soumya Kanti Sarkar Enrolment Number:- Signed: Date: ACKNOWLEDGEMENTS The author wishes to express his gratitude and deepest regards to his internal guide (Dr. Debraj Datta) for his exemplary guidance, monitoring and constant encouragement throughout the course of this dissertation. The author would also like to express his deep sense of gratitude to Globsyn Business School and the Registrar’s Office for giving this opportunity. The author is obliged to all his respondents for their valuable time and co-operation they showed to complete this survey. Lastly, the author wishes to thank the god, his parents and friends for their constant encouragement and support without which the dissertation would not have been possible. TABLE OF CONTENTS 1. Approval Note 2. Certificate from Internal Guide 3. Declaration of Originality 4. Acknowledgement 5. Table of Content 6. Abstract 7. Dissertation: Chapter 1 8. Dissertation: Chapter 2 9. Dissertation: Chapter 3 10. Dissertation: Chapter 4 11. Dissertation: Chapter 5 12. Webliography ABSTRACT Title of Study: A STUDY ON THE IMPACT OF CONSUMER BEHAVIOUR TOWARDS LEADING CARBONATED SOFT DRINK BRANDS IN INDIA Objective: The main objective of this study was to identify the brand preference of soft drinks among different age categories of people. The chosen topic has been investigated from the point of view of the consumer, so as to gain an understanding of their individual perspectives on the issue. Research Methodology: A primary research has been done by collecting data from 40 respondents aged between 15-30 and above years, both male and female with a questionnaire. Theory: The theoretical concept which has been addressed here is consumer acceptance or behavior. The aim was on one hand to offer a comprehensive view of the concept while also to study consumers’ attitudes towards carbonated soft drink brands in India. Research Limitations: The two most important limitations of this research are method and number. For this research study the method was the most appropriate and the number of consumer views assessed was acceptable. CHAPTER 1 1. INTRODUCTION 1.1 Study Background In our modern world living pattern and life style of the people have changed a lot. Soft drinks were common preference among all the individuals with the changing life style and income levels, people are shifting their consumption patterns. Market research is based on consumer’s buying preference towards soft drinks. Soft drink is an important product item in modern society both urban and rural and becoming more popular in the consumer world. At present soft drink market is one of the most competitive markets in the world. In which crores of rupees on advertisement and other promotion activities are being spent. In India the soft drink industry is flourishing well with a wide range of brand comprising both popular international, national and regional branded soft drinks. In present investigation, the impact of globalization on brand preference of soft drinks and the factor determining the brand preference is studied. The study on brand preference becomes necessary. The purchase decision largely depends upon Taste, Quality, Quantity, Price, Availability and the like. Due to globalization, there are many soft drink brands available in the market such as Coca- cola, Pepsi-cola, Sprite, Fanta etc.. In current scenario, where the competition is tough, consumer choose preferred brand according to their pleasure. The company can achieve and complete in the market, only when they satisfy the needs of the customer by taking in to account their reason for brand preference. 1.2 Objectives: The study is concerned with the following objectives: To identify the brand preference of soft drinks among different age categories of people. To know the factors influencing their purchase decision. To understand what people prefer most towards soft drinks. 1.3 Statement of the problem: The study was conducted to know the brand preference and factors influencing young consumers of packaged soft drink. Soft drink is an important product item in the modern society. It is mainly concentrated on the consumption among youth. It is found that a great important for the study. The study examines key attitude of buying and brand perception with preference that are considered as important cues, which lead youth to select particular brand of soft drink. In modern world due to the development of science and technology many new brands of soft drink products flood the market every year. When the new brands enter in to the market, some consumers switch over to it. 1.4 Scope of the study: The study was conducted among young consumers. The study is intended to assess level of soft drink consumption. It helps us to understand the various factors influencing the young consumers of packaged soft drinks. It also provides various information to us regarding the attitude of youth towards soft drinks. 1.5 Research methodology: 1.5.1 Source of data 1. Primary data Primary data are those data, which are collected for the first time. Primary data was collected by conducting survey through a questionnaire which seeks answer to a set of preconceived question in a structured way. The questionnaire consists of 14 questions. 2. Secondary data The secondary data are those data which have already been collected. It means data that was already available. Secondary data was collected from sources like Journals, internet and previous studies. 1.5.2 Tools of Analysis 1. Questionnaire 2. Percentage Analysis 1.5.3 Analytical Tools 1. Graphs 2. Tables 3. Diagrams 1.5.4 Limitations of study 1. Very limited time available for this study 3. Many of the questionnaires had irrelevant and incorrect answers filled in by the respondents leading to errors in the study 4. Sample size is comparatively small for a study of vast relevance 5. Lack of experience CHAPTER 2 2. LITERATURE REVIEW However a number of studies have been conducted in the form of surveys and research work done on Consumption pattern and brand preference towards soft drink product. An attempt has been made to understand and acknowledge the work of various researchers in the field of brand preference and consumption pattern of soft drinks. In their studies soft drink industry in India is one of the most competitive with many international and domestic players operating in the market. Initially domestic player like pare group dominated the Indian soft drink market. However with the re-entry of MNC players like pepsin 1991 and coca-cola in 1993, the market took a decisive shift in favor of these MNCs and over the years coca-cola and Pepsi have become the prominent players in the market. Marketers overtly acknowledge the power of celebrities in influencing consumer-purchasing decisions. It is an ubiquitously accepted fact that celebrity endorsement can bestow special attributes upon a product that it may have lacked otherwise. Although celebrity advertising celebrity advertising for soft drinks brands is popular in India. CHAPTER 3 3. THEORY 2.1 What is soft drink? Soft drink is commercially prepared non-alcoholic, flavored, usually carbonated beverage consisting of water (soda water) and a sweet syrup or artificial sweetener, usually sold in bottles, PET bottles or cans. Today there are hundreds of varieties of flavored soft drinks. Coca-cola and Pepsico are the world’s largest corporation founded their business on soft drink manufacturing. 2.2 Raw materials used in soft drinks There are different types of raw materials used in different soft drinks. Most of the raw materials are: Water: the simple sweetened soft drink contains about 90% of water, while in diet drinks. It contains 95% of water. Flavor: flavor is of great importance in soft drink. Even water from different places has different taste. The flavor for taste added can be natural or artificial, acidic, caffeine. Acids: acids like citric acid & phosphoric acid are added to give refreshing tartness or bite & help in preserving the quality of a drink. Natural flavors: these are the flavors, which are extracted from fruits, vegetables, nuts, barks, leaves etc. in soft drink containing natural flavors& fruit juice. Artificial flavor: these are the flavors manufactured from natural extracts. This is used to give greater choice, in taste to consumers. Caffeine: caffeine has special kind of taste makes the taste of soft drink a royal one. Caffeine was added to soft drink from its introduction to a commercial market but now caffeine free soft drinks are also available. Its quality is Y4 than compared with same amount of coffee. Carbon dioxide: carbon dioxide is a colorless & smell less gas, which is added to cold drink to get bubble & it also help in keeping drink strong &fresh Color: along with taste of soft drinks is also of very important, the company tries to maintain both taste & color of the soft drink everywhere in the world. Sugar: sugar syrup is added to the drink at around 75 degree C to the pure drinking water, this is to make soft drink taste sweet. Even artificial sweetness is also use 2.3 Top Soft Drink Brands in India India is the world's fastest growing major economy and has already made it to the list of 10 biggest economies of the world. According to the International Monetary Fund (IMF), India is the ninth largest economy with a nominal GDP estimated at around US$ 2.04 trillion. With US$ 7.96 trillion PPP in terms of the Purchasing Power Parity (PPP), India is the third largest economy with US$ 7.96 trillion, and that is what makes it one of the biggest markets in the world. According to official reports, the volume of soft drinks consumed in India stood at a whopping 11,755 million litres in 2013. These numbers suggest that there was an increase of about 170 percent in the consumption of soft drinks in comparison to 2008. It is further expected that the sale of soft drinks may go up by an annual 19 percent till until 2018. 2.4 List of major and most popular soft drinks in India Pepsi Pepsi is one of the most popular and most widely consumed soft drink brands in India. It is the flagship brand of the PepsiCo. India. Pepsi was introduced to India in 1990 and was an instant hit amongst the Indian youth. It grew in popularity rapidly and never looked back. According to the official website of PepsiCo, India - Pepsi is loved by over 200 million people worldwide and is the largest selling soft drink brand in India Coca-Cola Coca-Cola is the world's highest most selling and most popular soft drink brand by far. However, Coca-Cola has not been able to make the same impression over the Indian people masses. Nevertheless, Coca-Cola is one of the most sought- after and largest selling soft drink brands in India. It is the signature brand of Coca-Cola India. Coca-Cola was re-launched in India in 1993 after a span gap of 16 years. The Coca-Cola brand has been endorsed by celebrities such aslike Amir Khan, Virender Sehwag, Aishwarya Rai, Hrithik Roshan and Deepika Padukone. Sprite Sprite is a product of Coca-Cola India and was introduced in 1999 to the Indian soft-drinkers in India in 1999. This particular brand rapidly grew in terms of sale and popularity. Over the past decade and a half of its distribution in India, Sprite has contributed a considerable volume of revenue for Coca-Cola India. Thums Up Thums Up is considered synonymous to energy, enthusiasm and power of a youth because of an the intense and electrifying carbonated fizz that it creates upon consumption. Thums Up was launched in 1977 by Parle,; however, Parle but sold the its 85 percent stakes it held to Coca-Cola India in 1993. Thums Up never fell short of expectations of Indian youth and continued dominating the Indian soft drink industry till until late 2013. Limca Limca is a lime and lemon carbonated soft drink that gives you the flavours of both lime and lemon. It and is the most famous and biggest brand in the lime and lemon segment. Limca is yet another Indian b-born and Coca-Cola- acquired soft drink brand. It was launched by Parle Agro in 1971 and was bought by Coca-Cola in 1993. Noted Bollywood actress Kareena Kapoor has endorsed brand Limca. 2.5 The Disadvantages of Soft Drinks Dehydration Sixty percent of our bodily weight is comprised of water, report mayo clinic.com, we lose water when you sweat, urinate and breathe. For the body to continue functioning properly, we must replace the lost water with ingested fluids. Sodas are often consumed in the place of water or other hydrating fluids. High sugar content Many soft drinks contain significant quantities of sugar. One 12-ounce serving of cola, for example, includes 39 grams, or 3.3 tablespoon, of sugar. Consuming such large quantities of sugar elevates your blood glucose level and may increase your risk for cardiovascular disease. Weight Gain Weight gain result when you consume more calories than your body burns. A 12-ounce serving of cola contains 140 calories, often called “empty calories” Because they provide no nutritional value. Drinking one can of cola a day for four Week is equivalent to ingesting 3,920 extra calories, or a gain of 1.1 pounds if the calories are not burned. CHAPTER 4 4. DATA ANALYSIS AND REPRESENTATION 4.1 Classification on the basis of gender XAnswer Options Response Count Male 30 Female 10 The above table shows that 75 % of respondents are male and 25 % are females. 4.2 Present consumer of soft drinks XAnswer Options Response Count Yes 40 No 0 The above table shows that 100 % of respondents are using soft drinks. 4.3 Showing the consumer brand preference of soft drinks XAnswer Options Response Count Coca –cola 9 Sprite 14 Thumps Up 8 Mountain Dew 3 Pepsi 4 Other 2 The table shows that 35 % of customers are using Sprite, 22% are using Coco-cola, 10% prefer Pepsi, 8% of customers are using Mountain Dew, 20% are using Thums Up, and 5 % prefer other brand. 4.4 Showing the consumers using the above stated brand X 22 customers using the stated brand more than two years, no customer using the stated brand between the periods of 1 to 2 years, 7 of customers are using the particular brand for last five months and 11 customers are using the brand for 1 year. 4.5 Showing the consumers’ opinion of the brands 23 customers say that their brands are excellent. The other 17 are says that their brands are good. Nobody says that the brands that they preferred are bad or poor. 4. 6 showing the consumer pay the quantity do prefer buying a product XAnswer Options Response Count 100ml250ml 20 250ml500ml 13 1 litre 4 More than 1 litre 3 The table showing the consumers preference quantity for purchasing soft drinks. Majority of the respondents belongs 100ml-250ml. 10% choose the option 1 litre. 32% prefer 100ml-250ml and only 8% prefer more than 1 litre. 4.7 Study the consumer view of soft drinks The above table shows the views of consumer about soft drinks. 77% choose the option as an aid to put off thirst. 3% of respondents view is as status symbol. 7% view is as a health drink. 13% view as other options. 4.8 Showing the purpose of using soft drinks among consumers X 73% of respondents are using soft drinks for refreshments. 22% are for taste. Remaining customers give importance to, brand loyalty. CHAPTER 5 FINDINGS, SUGGESTIONS AND CONCLUSION 5.1 Findings The majority of respondents prefer sprite and secondly preferred Coca-cola Most of the respondents view soft drink as an aid to put off thirst In this survey major respondents are male Majority of the consumers opinion of the brand is excellent Majority of the reason for preferring a selected brand is refreshment 5.2 Suggestions Consumption of soft drinks are not good for health. There are so many health problems related with consumption of soft drinks. The major findings from this study, youth is the major consumers of soft drink product. Youth should: Reduce their consumption of regular sports drink, soda or pop and other sugar – sweetened beverages. Increase their consumption of water and low fat or fat milk Reduce youth’s access to sugar- sweetened beverages to decease consumption. Encourage adolescents to drink water and low fat- free milk, or limited amounts of 100% fruit juices, as an option. 5.3 Conclusion As stated in the objectives, this study is aimed at studying the b rand pretence and factors influencing young consumers of packaged soft drinks. The consumption of soft drinks products increase comparing with previous times. The changing living pattern and life style of the peoples are changed a lot so soft drinks where common preference among all the individuals with the change in life style and income level, peoples are shifting their consumption patterns. The quality and taste are influencing in consumer purchasing decisions. One of the major influencing medium of purchasing soft drink product is media advertisements. Major part of the consumer view about soft drink is as an aid to put off thirst. Another part of the consumer believes soft drink as a status symbol. 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