A COMPARITIVE STUDY ON PREFERENCE OF SOFT DRINKS IN YOUTH

REPORT

Submitted to: DR. RAJKUMAR

Submitted by: CHIRAG GUPTA Roll no. 5382 MBA 5.4

MASTER OF BUSINESS ADMINISTRATION

INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

MDU,ROHTAK

2010-2011

DECLARATION

I Chirag Gupta, student of 5 year M.B.A 4 th semester of Institute of Management Studies and Research hereby declare that the project report titled Preference of soft drink in youth is a code of critical & independent work carried out by me under supervision & guidance of Dr. Raj Kumar. This has not been previously submitted for the award of any other diploma, degree or other similar degree. The feasibility suggestion has been duly incorporated in the consultation with the supervisor.

Signature of the Candidate

EXECUTIVE SUMMARY
Soft Drinks were common preference among all the individuals, irrespective of their age groups as it had great brand value and great advertisement. Market Research is based on some underlying parameters like: Changing consumption pattern Advertisements Taste Status consciousness Varying lifestyle

The study starts with determining the major players in the soft drinks, their overall consumption pattern among the people and ends up with the conclusion as per the state of mind of the average rational human being. Consumer preferences are changing towards healthier food, and thus such a trend will carry on for some time to come. In the soft drinks market of late, most recent new products launched have been focused on the health benefits of the soft drinks, like pomegranate juices, calcium-fortified bottled water and a series of reduced-sugar alternatives, with such features not previously so readily available to or heavily promoted at the target audience.

TABLE OF CONTENTS SERIAL NO. 1) 1.1) 1.2) 1.3) TITLE INTRODUCTION Industrial profile Major 04 Study 09 2) 2.1) 2.2) 2.3) 2.4) 2.5) 2.6) 2.7) 2.8) 3) 13 4) 24 LIMITATION OF THE STUDY 10 Objectives of the study Scope of the study 10 Research Design Sampling Technique used 12 Selection of Sample Size 12 Sources of Data collection 12 Statistical Tools Used 12 11 10 RESEARCH METHODOLOGY Purpose of the study of growth of soft drink market players in soft drinks 01 segment PAGE NO.

DATA ANALYSIS AND FINDINGS

5) 25 6) ANNEXURE 6.1) Questionnaire 7) 28

CONCLUSION

26 BIBLIOGRAPHY

INTRODUCTION

INDUSTRIAL PROFILE
The soft-drink industry comprises companies that manufacture nonalcoholic beverages and carbonated mineral waters or concentrates and syrups for the manufacture of carbonated beverages. Naturally occurring bubbling or sparkling mineral waters have been popular for thousands of years: the ancient Greeks believed that such waters had medicinal properties and bathed in them regularly; the Romans established resorts around mineral springs throughout Europe. In the 1500s the village of Spa in Belgium became famous for its waters, which by the early 1600s were sold, in bottles, as far away as London, Eng. Development of the first man-made sparkling or carbonated water is credited to Joseph Priestley, the British scientist who discovered oxygen. In 1772 he invented a method of "pushing" carbon dioxide into water by dissolving it under pressure, thus creating fairly long-lasting bubbles. The technique led to development of the soft-drink industry. By the beginning of the 19th century, carbonated water was being made commercially in France and North America; shortly thereafter, flavours (normally fruit concentrates) were added to enliven the taste. In the 1820s, small carbonated bottling operations were established in Canada, producing carbonated drinks in refillable bottles which were merchandised as medicinal elixirs or tonics. Most soft drinks are still carbonated to give drinks a "tangy bite"

and to stimulate the tongue. Furthermore, because scent is an important part of taste, the flavours carried as vapours in the bubbles enhance taste. The principle of "pushing" carbon dioxide is still used, but now the water is first purified in a process known as "polishing." Cooled carbon dioxide is then injected at pressures of 275550 kilopascals. Some of the early drinks bottled in Canada were called Birch Beer, Ginger Beer, Sarsaparilla, Sour Lemon, None-Such Soda Water and Cream Soda. The first carbonated beverage or "pop" bottles were sealed with corks held tightly in place with a wire binding. Because they had to be stored neck down so that the cork would not dry and allow the carbonation to leak away, they were manufactured with rounded bottoms. By the mid1800s, soft drinks sold in Canada were packaged in 8-ounce (227.2 ml) round-bottom bottles for about 25 cents a dozen, except ginger beer, which was sold in draught form from wooden kegs. Wired cork closures were used until about 1884 with Codd's Patented Globe Stoppers (25 types in all). Such closures were replaced by the Hutcheson Spring Stopper. The crown cap was introduced around 1905 and improved versions are still widely used, although they are gradually being replaced, especially on larger containers, with reclosable screw caps. 1 Other packaging innovations since the mid-1960s include canned carbonated beverages, nonreturnable glass bottles and containers made from rigid plastics. However, an effort is being made, often through provincial legislation, to increase the use of returnable glass containers. In the industry's early years the number of carbonated-beverage plants increased steadily, most serving small regional markets. In 1929 the industry was made up of 345 production plants and the value of shipments reached $12.3 million. By 1960 the number of plants had increased to 502 and the value of sales to $172.7 million. Subsequently, consolidation began, prompted by improved production, packaging and distribution facilities. By 1973, 337 plants were in production and the value of shipments was $484 million. In 1985, with sales of about $1.8 billion, the industry had 187 plants in production: Newfoundland had 3; PEI, 1; Nova Scotia, 7; New Brunswick, 8; Qubec, 66; Ontario, 58; Manitoba, 7; Saskatchewan, 10; Alberta, 13; and BC, 14. Production volume has also increased dramatically: in 1939, soft-drink bottlers produced about 162 million litres of carbonated beverages; by 1967, production passed 758 million litres; in 1986, shipments were estimated at over 2.1 billion litres; and in 1998 that figure rose to 3.5 billion litres.

The industry is regulated by both federal and provincial agencies, 3 of the most important being CONSUMER AND CORPORATE AFFAIRS (responsible for the Consumer Packaging and Labelling Act), HEALTH CANADA (which administers the Food and Drugs Act) and Environment Canada (which focuses on environmental matters). The industry is represented by the Canadian Soft Drink Association in Toronto and by several provincial associations. The introduction of diet carbonated beverages has changed the industry's profile. Several years ago, in response to increasing consumer diet consciousness, the industry introduced the first successful sugar-free diet drinks using the artificial sweetener cyclamate. But questions were raised about the safety of this additive and, based on existing scientific data, Health Canada banned its use in Canadian commercial FOODS AND BEVERAGES. This decision, estimated to have cost the industry more than $15 million, was a setback to dietdrink development. The industry turned to saccharin, but this too was eventually banned. Now, a new sugar-free additive, aspartame, has been approved for use in diet soft drinks, 2 and the cyclamate/saccharin situation is not expected to recur because aspartame consists of amino acids, which occur naturally. Aspartame-sweetened diet drinks have had a dramatic effect on the Canadian carbonated-beverage industry. Just before the saccharin ban in 1977, diet drinks accounted for about 10% of the soft-drink market; following the ban the diet share dropped to about 2%, consisting of beverages partially sweetened with small amounts of sugar. In 1982, the first full year that aspartame was used in Canada, diet drinks increased by 15.2% of total soft-drink sales, while the total soft-drink industry grew 8%. In 1987 total soft-drink sales increased 5.3% over 1986, while diet soft-drink sales increased by 10.7%. This single development has encouraged strong growth in the industry.

MAJOR PLAYERS IN 3 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.

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 one to indulge in the moment.

LIMCA

 LIME AND LEMONI!!!

Drink that can cast a tangy refreshing spell on anyone, anywhere. Born in 1971, Limca has been the original thirst choice, of millions of consumers for over 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. Dive into the zingy refreshment of limca and walk away a new person.

THUMS UP

TASTE THE THUNDER!!!

Strong cola taste, exciting personality. Thums up is a leading carbonated soft drink and most trusted brand in India. Originally introduced in 1977, thums up was acquired by the coca cola company in 1993.

Thums up, is, known for strong, fizzy taste and its confident, mature and uniquely masculine attitude. This brand clearly seeks to separate the man from the boys.

SPRITE SPIRITE BHUJAYE PYAAS BAKI SAB BAKWAAS!!!

World wide sprite ranked as no.4 soft drink and is sold in more than 190 countries In India, sprite was launched in year 1999 and today it has grown to be one of the fastest growing soft drinks, leading clear lime category. Today sprite is perceived as a youth icon. With strong appeal to youth sprite has stood for a straight forward and honest attitude. Its clear crisp hingtaste encourages todays youth to trust their instincts, influence them to be true 6 who they are and to obey their thirst.

MAAZA YAARI DOSTI TAAZA MAAZA!!!

Maaza was launched in 1976. In 1993, maaza was acquired by coca cola India. Maaza currently dominates the fruit drink category. Over the years, maaza has become 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.

PEPSI YEH DIL MAANGE MORE!!!

Pepsi cola is a carbonated beverage that is produced and manufactured by Pepsi co. It is sold 7 in stores, restaurants and from vending machines. The drink was first made in the 1890s 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)

STUDY OF GROWTH OF SOFT DRINK MARKET

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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 the soft drink market. NCAER survey says 91% of soft drink in the country is in the lower, lower middle and upper middle class people. The market is worth around Rs.5000 crores with growth rate of around 10-15%.

The annual per capita consumption in India is only about 6 bottles vis- a- Vis 340 bottles in the U.S. The production as soft drinks has increased from 5670 million bottles in 1998-99 to 6230 million bottles in 1999-2000 industry source. Growth market this year is expected to be 10-15% in value terms and 20-22% in volume terms. However, the market for carbonated drinks is stagnating and not growing as expected.

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RESEARCH METHODOLOGY

PURPOSE OF THE STUDY

The main aim of this research study is to analyze the preference of youth on consumption patterns and preference of Soft Drinks.

OBJECTIVE OF THE STUDY

To study the preferences of the youth for soft drinks.

To find out the factor(s) that influences the consumers consumption of soft drinks. To test the know-how of the consumers regarding the various existing brands of soft drinks. To know the size of the soft drink purchase for personal and household purpose. To know the frequency of consumption of soft drink.

SCOPE OF THE STUDY

This study is confined MDU campus Rohtak. Seasonal drinks are not considered in the study. We are considering only canned and bottled drinks. We are not considering health & alcoholic drinks.

RESEARCH DESIGN
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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: 1) EXPLORATORY RESEARCH

2) 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. 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 varies with income, age, etc.

SAMPLING TECHNIQUE USED: 11

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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 convenient.

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SELECTION OF SAMPLE SIZE:

For the study, a sample size of 60 has been taken into consideration.

SOURCES OF DATA COLLECTION:

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:
Secondary data will consist of different literatures like books which are published, 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 Bar Diagrams 12

DATA ANALYSIS & FINDINGS

Statistics On what Frequency of Where do you Do you like soft drink? N Valid Missing Mean Median Mode Variance 60 0 .9333 1.0000 1.00 .063 mosty consume soft drink? 60 0 2.0333 2.0000 2.00 .473 consumption of soft drink in a week? 60 0 2.5500 2.0000 2.00 1.167 occasions, do you often consume the soft What induce you drink? 60 0 2.0167 2.0000 2.00 .559 to buy soft drink? 60 0 3.7667 4.0000 4.00 .826

Statistics Do you agree Do Which soft drink do you like more? N Valid Missing Mean Median Mode Variance 60 0 3.5000 4.0000 1.00 5.203 advertisement influence your purchase? 60 0 2.6833 3.0000 2.00a .966 that packaging influence your purchase decision? 60 0 2.4167 2.0000 2.00 .891 Please tick the size of soft drink you purchase for personal consumption? 60 0 2.8333 3.0000 3.00 .921 Which soft drink is served to the guest in your home? 60 0 3.9833 4.0000 1.00 4.423

a. Multiple modes exist. The smallest value is shown

Statistics Who decide the drink for household? N Valid Missing Mean Median Mode Variance 60 0 2.8167 3.0000 3.00 .356 Do you read on the packaging of soft drink? 60 0 1.6167 2.0000 2.00 .240

selection of soft instruction written

Do you like soft drink? Cumulative Frequency Valid No Yes Total 4 56 60 Percent 6.7 93.3 100.0 Valid Percent 6.7 93.3 100.0 Percent 6.7 100.0

Where do you mosty consume soft drink? Cumulative Frequency Valid Party Cafe Home Total 13 32 15 60 Percent 21.7 53.3 25.0 100.0 Valid Percent 21.7 53.3 25.0 100.0 Percent 21.7 75.0 100.0

Frequency of consumption of soft drink in a week? Cumulative Frequency Valid Daily 2-4 times More than 4 times Once in a week Total 10 24 9 17 60 Percent 16.7 40.0 15.0 28.3 100.0 Valid Percent 16.7 40.0 15.0 28.3 100.0 Percent 16.7 56.7 71.7 100.0

On what occasions, do you often consume the soft drink? Cumulative Frequency Valid Feeling Thirsyt Without any reason Parties/celebretions other Total 14 33 11 2 60 Percent 23.3 55.0 18.3 3.3 100.0 Valid Percent 23.3 55.0 18.3 3.3 100.0 Percent 23.3 78.3 96.7 100.0

What induce you to buy soft drink? Cumulative Frequency Valid Price with quality Health drink Taste Variety Total 4 3 49 4 60 Percent 6.7 5.0 81.7 6.7 100.0 Valid Percent 6.7 5.0 81.7 6.7 100.0 Percent 6.7 11.7 93.3 100.0

Which soft drink do you like more? Cumulative Frequency Valid Dew Sprite Cocacola Pepsi Limca Maaza Other Total 21 7 1 6 7 13 5 60 Percent 35.0 11.7 1.7 10.0 11.7 21.7 8.3 100.0 Valid Percent 35.0 11.7 1.7 10.0 11.7 21.7 8.3 100.0 Percent 35.0 46.7 48.3 58.3 70.0 91.7 100.0

Does advertisement influence your purchase? Cumulative Frequency Valid Strongly agree Agree Neutral Disagree Strongly Disagree Total 6 21 21 10 2 60 Percent 10.0 35.0 35.0 16.7 3.3 100.0 Valid Percent 10.0 35.0 35.0 16.7 3.3 100.0 Percent 10.0 45.0 80.0 96.7 100.0

Do you agree that packaging influence your purchase decision? Cumulative Frequency Valid Strongly agree Agree Neutral Disagree Strongly Disagree Total 7 30 17 3 3 60 Percent 11.7 50.0 28.3 5.0 5.0 100.0 Valid Percent 11.7 50.0 28.3 5.0 5.0 100.0 Percent 11.7 61.7 90.0 95.0 100.0

Please tick the size of soft drink you purchase for personal consumption? Cumulative Frequency Valid 2ooml 250ml 300ml 500ml other Total 6 14 25 14 1 60 Percent 10.0 23.3 41.7 23.3 1.7 100.0 Valid Percent 10.0 23.3 41.7 23.3 1.7 100.0 Percent 10.0 33.3 75.0 98.3 100.0

Which soft drink is served to the guest in your home? Cumulative Frequency Valid Dew Sprite Cocacola Pepsi Limca Maaza other Total 16 1 3 11 12 11 6 60 Percent 26.7 1.7 5.0 18.3 20.0 18.3 10.0 100.0 Valid Percent 26.7 1.7 5.0 18.3 20.0 18.3 10.0 100.0 Percent 26.7 28.3 33.3 51.7 71.7 90.0 100.0

Who decide the selection of soft drink for household? Cumulative Frequency Valid Father Mother Himself/herself Other Total 2 11 43 4 60 Percent 3.3 18.3 71.7 6.7 100.0 Valid Percent 3.3 18.3 71.7 6.7 100.0 Percent 3.3 21.7 93.3 100.0

Do you read instruction written on the packaging of soft drink? Cumulative Frequency Valid Yes No Total 23 37 60 Percent 38.3 61.7 100.0 Valid Percent 38.3 61.7 100.0 Percent 38.3 100.0

LIMITATIONS OF THE STUDY

LIMITATION OF THE STUDY

The study was confined to University Campus MDU Rohtak only. Chances of some biasness could not be eliminated. Youth are assumed to be between the age 15 to 25 Time was the major constrain. Only limited sample size (60) was possible for such a vast research on such a period of time .i.e. one month Interaction with the respondents was also limited due to their busy work. Due to the changing life style and preferences, it was not necessary that they will consume same soft drink every time. There was a chance that respondent will make assumptions while filling the questionnaire.

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CONCLUSION

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 91%of youth like to have soft drinks while 9% not like. Through the research it was conveyed that weekly consumption of soft drinks is more than daily consumption. Most of the respondents took soft drink without any reason. Remaining majority of the respondents consume soft drinks at the time of parties & celebrations. Most of the respondents consume soft drinks because of its taste. Most of the respondents were of the neutral view that advertisements affect their purchases. Most of the respondent likes Dew. Most of them consume 300ml pack for personal usage. Packaging doesnt influence the purchase of most of the respondents. Most of them dont read instruction written on the package of soft drink.

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ANNEXURE

QUESTIONNAIRE
Respected Sir/Madam A Research Project is being pursued in IMSAR on Preference of soft drink in youth. Kindly extend your cooperation & enable us doing the project successfully. This information is used for academic purpose.
PERSONAL DETAILS

Name Age Gender Qualification

. . Female Under Graduate Post Graduate

- Male - Graduate Other (Specify)

1) Do you like soft drinks? Yes No

2) Where do you mostly consume soft drink? Party Caf Home

3) Frequency of consumption of soft drink in a week? Daily 2-4times more than 4 times once in a week

4) On what occasions, do you often consume the Soft Drinks? Feeling Thirsty Parties / Celebrations Without any reason (just like that) Others, please specify..

5) What induces you to buy Soft Drinks?

Price with quantity Taste

Health Drink Variety

Status symbol Advertisement

6) Which soft drink do you like more? Dew Limca Sprite Maaza Cocacola Pepsi Other (specify)

7) Do advertisements influence your purchases? Strongly Agree Strongly Disagree 8) Do you agree that packaging influence consumer purchase decision? Strongly agree Disagree Strongly disagree Agree Neutral Agree Neutral Disagree

9) Please tick the size of soft drink you purchase for personal consumption? 200 ml 250ml 300ml 500ml other (specify) 10) Which soft drink is served to the guest in your home? Dew Limca Sprite Maaza Cocacola Pepsi Other (specify)..

11) Who decide the selection of soft drink for household? Father Mother Himself/Herself Other(Specify).

12) Do you read instruction written on the packaging of soft drink? Yes No

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BIBLIOGRAPHY

BIBLIOGRAPHY
http://en.wikipedia.org/wiki/Beverage www.foodindustryindia.com http://fnbnews.com/article/detarchive.asp?articleid=25105&sectionid=3 http://fnbnews.com/article/detarchive.asp?articleid=24983&sectionid=3 http://fnbnews.com/article/detarchive.asp?articleid=24965&sectionid=3 http://fnbnews.com/article/detarchive.asp?articleid=24849&sectionid=3 http://fnbnews.com/article/detarchive.asp?articleid=25039&sectionid=3 http://www.foodindustryindia.com/newfood/detailnews.jsp?n=Xtazy,%20another %20energy%20drink%20for%20the%20Indian%20market&id=598 http://fnbnews.com/redfr.asp?fn=/other/aboutus.asp&title=About %20Us#Food&beverage www.google.com Kothari C R, Research and Methodology- Methods & Techniques, New Age International (P) Ltd., 2004