Final Soft Drinks Cb

7/29/2019 Final Soft Drinks Cb

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CONSUMER BUYING BEHAVIOR

TOWARDS SOFT DRINKS

GROUP 5

Jatin Jain 147Nitasha Basu 158

Manika Dhamija 164

Priyanka Malhotra 183

Vibhu Sharma 186

Anusha Gupta 194


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MANAGEMENT PROBLEM

A multinational soft drink company is planning to establish

their business operations in India.

Facilitate decision making of top management by collectingprimary data on consumer buying behaviour in the soft drink

category, which will help in decision making process of top

management.

Product category taken: Soft drinks.


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INTRODUCTION

The soft-drink industry comprises companies that

manufacture non-alcoholic beverages and carbonated

mineral waters, concentrates and syrups for carbonated

beverages.

Soft drinks can be further divided into carbonated and non-

carbonated drinks.

The government has adopted liberalized policies for the soft

drink trade to give the industry a boast and also to promote

the Indian brands internationally.

With FMCG companies experiencing the slow down, however

the soft-drink industry is leading the way with staggering

increase in growth rates.


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SOFT DRINK INDUSTRY - INDIA

The 50-billion-rupee soft drink industry is growing at 6 to 7%annually at present in India. In India, Coke and Pepsi have acombined market share of around 95% directly or throughfranchisees.

There are about 110 soft drink producing units (60% being ownedby Indian bottlers) in the country, employing about 125,000

people. The per capita consumption of soft drinks in India is around 5 to 6

bottles, compared to Pakistan's 17 bottles, Thailand's 73, the

Philippines 173 and Mexico 605. The industry contributes over Rs 12 bn to the exchequer and

exports goods worth Rs 2 bn. It also supports growth of industrieslike glass, refrigeration, transportation, paper and sugar.


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0

50

100

150

200

250

300

350400

450

500

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2014-15

Demand of Soft-drinks

Million Bottles

24%

18%

32%

26%

Market Structure

North

East

West

South

0

5

10

15

20

25

30

35

Thumbs Up Coca Cola Pepsi

Cola Drinks - Segmentation

Percentage

0

1

2

3

4

56

7

8

9

10

Gold Spot Fanta Mirinda Limca

Non-Cola - Segmentation

percentage

MARKET STATISTICS

Source: www.researchandmarkets.com


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OBJECTIVES OF THE STUDY

Identification of the factors that affect the buying behaviour

of consumer with respect to soft drink category.

Impact of external factors like firm's marketing efforts andsocio-cultural environment in consumer buying behaviour.

Impact of psychological field (motivation, perception,

learning, personality, attitudes) in decision making process ofconsumer with respect to soft drink category.


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RESEARCH METHODOLOGY

Data collected through articles and researchpapers on soft drink industry, containinginformation about the brands.

SECONDARY

RESEARCH

Quantitative Research - A survey using aquestionnaire to analyze different aspects ofthe brand like its awareness, recall andperception.

PRIMARYRESEARCH


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SAMPLING PROCESS

Sample Size: 110 samples across Delhi (Tier 1)

Target Population: Consumers of soft drinks

Sampling Unit: house-makers, school and college students and

professionals.

Sampling Frame: Malls, Contacts and E-mail.

Sampling Technique: Convenience & Judgemental Sampling


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Data Analysis & Interpretation


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Demographics

58%

42% Male

Female

GENDER

Below 18 18-24 25-35 Above 35

17%

36%

26%21%

AGE

8%

34%

58%Rs 1-5 Lakhs

Rs 5-10 lakhs

Above 10 lakhs

YEARLY FAMILY INCOME


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0

5

10

15

20

25

30

35

40

45

50

Carbonated Non-carbonated Both

FemalesMales

KIND OF BEVERAGE PREFERENCE


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Type of Non Alocoholic Drink

0 5 10 15 20 25 30 35

Others

Milk Shakes

Diet Cola

Lemon-Lime Sodas

Health drinks

Regular Cola


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Purchase Pattern

Everyday Thrice a week Twice a week Once a week Rarely

14 26 29 34 7

0

5

10

15

20

25

30

35

Everyday Thrice a

week

Twice a

week

Once a

week

Rarely

Percentage %


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Type of Packaging

Tetra pack

12%

Pet bottle49%

Can

20%

Glass bottle

19%


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Factors influencing consumer topurchase soft drinks


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Factors considered while purchasing soft drinks

Taste

Quality

Price

Packaging

Advertisements


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Brand Name

Brand Personality / Image

Promotional Offers

Influence by friends and family

Availability

Retailers Suggestion


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VeryImportant

31%

Important

44%

Neutral11%

less important

12%

Not at all

important

2%

Taste


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Very Important

47%

Important33%

Neutral

17%

less important

2%

Not at all

important

1%

Quality


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28%

39%

15%

12%

6%

PriceVery Important Important

Neutral less important

Not at all important

19%

25%

36%

9%

11%

PackagingVery Important Important




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VeryImportant

15%

Important

35%

Neutral25%

less

important

14%

Not at allimportant

11%

Advertisement


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24%

44%

15%

9%

8%

Brand NameVery Important Important



12%

14%

48%

12%

14%

Brand

Personality/ImageVery Important

Important

Neutral

less important


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29%

27%

18%

12%

14%

Promotional OffersVery Important Important



42%

31%

12%

10%

5%

AvailabilityVery Important Important




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7%

10%

36%26%

21%

Retailer's SuggestionVery Important Important



15%

19%

26%

26%

14%

Influence of

friends/FamilyVery Important Important




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Impact of external factors like firm'smarketing efforts and socio-cultural

environment in consumer buying

behaviour.

C id ti f B d hil P h i


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yes

44%

no33%

maybe23%

I understand the features of soft

drinks well enough to evaluate thebrands.

I have a preference for one or

more brands in the soft drink

class.

yesno

maybe

65%

15 %20 %

Majority of consumers are inclined to a particular brand and have evaluated its

features thoroughly.

Consideration of Brand while Purchasing


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yes

66%

no

22%

maybe

12%

I usually purchase the same brand within

the soft drink class.

If I received information that was contrary to

my preferred soft drink, I would still keep my

preferred brand.

yesno

maybe

30

45

25

Even the brand loyal customers consider critics

of their chosen brand.


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Effects of Advertisements

Advertisements - most influencing factor in attracting customer

Celebs endorsing a soft drink comes next

Sales promotion and sponsoring events are other attracting factors

All the factors are quite close, so no factor can be ignored


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Medium of Advertising

Outdoor advertising and Television are the main source of advertising

Followed by Window Display


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Sources of Purchase

Nearby Convenience Stores are main purchase point for customers

Supermarkets and Local Pan Shops are next


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Impact of psychological field in

consumer decision making processwith respect to soft drink category.


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What kind ofattitude do you have towards carbonateddrinks?

positive

45%

negative33%

neutral

22%

Attitude


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Brand Loyalty

Most of the customers are not too brand loyal

Availability is a strong point for sales


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I would prefer Indian soft

drinks(jaljeera, nimbu paani , lassi) to

western soft drinks (flavoured water,colas etc).

Yes No Maybe

15%

23%

20%

18%

13%

11% Male

Female


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Scope for new products

9%

14%15%

9%

12%11%

6%

9%

3%

7%

5%


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In your opinion what could be the reason for consuming softdrinks?

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

gives prestige Gives Refreshment /

Quenches thirst

Economical Reflects Life Style Tastes Good

Motivation


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yes

33%

no

32%

maybe

35%

This soft drink helps me express the I

within myself and makes me happy.


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Buying Behavior Influencer

Customers tend to buy the brand they like and not get influenced by

others

Family influences the buying behavior of majority of the rest


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Purchase Behavior at a Restaurant

Customers show a different purchase behavior when in a restaurant

They most of the times they go with the group while ordering a soft

drink


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Learning

Classical conditioning : ensure certain behaviourthrough repetition.

Eg :Coca-Cola's "happiness machine: evokeshappiness and togetherness.

Pepsi associated with fun and happy times by useof cricketers and celebrities.

Subliminal advertising : At movie theatre toincrease sales of popcorn and Coke.

Instrumental conditioning : learn by trial and error

Informal learning is most often mimickedbehaviour and has an impact on soft drinks.


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Top of Mind Recall

Coca cola

39%

Pepsi

33%

Thums up

11%

Fanta

5%

Limca

3%

Red bull

2%

Others Fruity,real

juice, tropicana,

maazaa

7%


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Perception - Word association

Thanda

Spread happiness

Coke

Refreshing

Best

Harmful/hazardous

Global co.

Original recipe

Youthful , energetic

American/western brand

Sweet taste

Popular

12%

11%

13%

8%

13%

4%

7%

5%

9%

8%

4%

6%

COCA COLA


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PEPSI

4%

7%

10%9%

6%7%

14%

8% 8%9%

7%

11%


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Conclusion

The most important factors for purchase behaviourwere taste, price, brand name and quality.

Independent small grocers/convenience stores lead thedistribution of soft drinks.

Outdoor advertising and Television are the mostpopular mediums of advertising.

Celebrity advertising has a powerful effect onconsumer.

Brand switching cost is low hence most consumers arenot too loyal.

Buying behaviour is contradictory in situations ofisolation and while socialising.


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The most important reason cited for purchasingsoft drinks is for quenching thirst and attainingrefreshment.

Coca Cola and PepsiCo are in the top of mind ofpeople.

Pepsi has stuck with its high energy and comedy-driven strategy while Coke has been projecting its

core values of happiness and togetherness Consumers have become increasingly aware of

health and fitness-related issues.


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Managerial Implications

Launch a differentiated product in the saturated softdrink market.

Need for integrated marketing campaigns to make amark in the highly competitive soft drink industry.

Endorsement by celebrities also creates top of the mindrecall.

Convenience stores are the most important purchasepoint, hence must be an important distribution partner.

Focus on taste, branding and price. Target growing market for health and wellness

products. Consumers are seeking healthier beverageseven if they are more expensive, due to theirpositioning.


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Documents

Final Soft Drinks Cb