A STUDY ON BRAND PREFERENCE OF SOFT DRINKS AMONG YOUTH

A STUDY ON BRAND PREFERENCE OF SOFT DRINKS AMONG YOUTH

DISSERTATION

Submitted in partial fulfillment of the requirement

For the award of the Degree of

BACHELOR OF BUSINESS ADMINISTRATION

UNIVERSITY OF CALICUT

BY

ARUNKRISHNAN.O.R

6^TH SEMESTER B.B.A

Reg. No.: GTAMBBA032

UNDER THE GUIDANCE OF

SMT.LEENA.K.P

ASSOCIATE PROFE

SSOR

(UG DEPARTMENT OF COMMERCE AND MANAGEMENT)

UG DEPARTMENT OF COMMERCE AND MANAGEMENT STUDIES

SRI.C.ACHUTHAMENON GOVERNMENT COLLEGE

THRISSUR-14     

2014-2015

CERTIFICATE

This is to certify that the project report titled “A STUDY ON BRAND PREFERENCE OF SOFT DRINKS AMONG YOUTH” is a bonafide record of the project carried by ARUNKRISHNAN.O.R under the supervision and guidance in partial fulfillment of the requirement for the award of the Degree of Bachelor of Business Administration of the University of Calicut.

Countersigned

DECLARATION

                                                     I ARUNKRISHNAN.O.R, do hereby declare that this project report “A STUDY ON BRAND PREFERENCE OF SOFT DRINKS AMONG YOUTH” is a bonafide record of the work done by me during the course of project and that the report has not previously formed the basis for the award of any degree, diploma, fellowship, associate ship or other similar title of recognition of any university or institution.

                                                I further declare that this project report is submitted on partial fulfillment of the requirement for the award of the degree of BBA from University of Calicut.

Place:

Date:                                                            

    

                                                                                                            ARUNKRISHNAN.O.R

ACKNOWLEDGEMENT

                                      I owe my sincere gratitude to T.R.NARAYANANKUTTY, Principal and Prof.U.S.MOHANAN, Head of the Department of Commerce and Management Studies, Sri.C.Achuthamenon Govt. College, Kuttanellur, for providing all the facilities in the college.

                                      I render my heartfelt thanks to Smt,LEENA.K.P Assistant Professor Dept. of Commerce and Management Studies, Sri.C.Achuthamenon Govt. College, Kuttanellur for his valuable guidance and supervision throughout the preparation of this project report. I am also thankful to all my professors and lecturers for their dear support.

                                     I would like to extend my gratitude towards my friends and family members especially my father and mother for their unique support and creative suggestions.

                                                                                                

                                                                                                           ARUNKRISHNAN.O.R

                  

                                                                                                    

List of contents

                              

CHAPTER – 1

INTRODUCTION

                                         

“A STUDY ON BRAND PREFERENCE OF SOFT DRINKS AMONG YOUTH”

1.     INTRODUCTION

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. 

                  This study examines key attitude of buying and branding perception that are considered as important cues, which lead youth to select particular brand of soft drink. The primary data has been collected through questionnaire.

1.2         Objectives of the study :

·        To identify the brand preference of soft drinks among youth.

·        To know the factors influencing their purchase decision.

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. So the study was conducted to know the brand preference and consumption among youth in soft drinks.  

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 help 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

According to Robert Ross, “Research is essentially an investigation, a recording and an analysis of evidence for the purpose of gaining knowledge”. Research can be generally defined as systematic methods of finding solution to problems. Research is an art of scientific information. It involves gathering data, use of statistical techniques, interpretation and drawing conclusion about the research data. Methodology is a method of solving problems systematically. It is based on both primary data and secondary data collected, mainly from Journals, books, internet and previous studies.

RESEARCH DESIGN

The success of any business research depends upon a sound research design. Research design is used as a guide in collecting and analysis of data. Research design is the arrangement of condition for collection and analysis of data in a manner that aims to combine to the research purpose with economy in procedure. It constitutes the blue print for the collection, measurement and analysis of data.

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 21 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.

Sampling Design

Sampling may be defined as the selection of some part of an aggregate or totality on the basis of which a judgement or inference about the aggregate or totalities is made

A sample design is a definite plan for obtaining a sample from the sampling frame. It refers to the technique or procedure the search would adopt in selecting sampling units from which inference about the population drawn

The sampling technique used in the study is convenience sampling. This method includes purposive and deliberated selection of a particular unit of the universe for consulting a sample which represents the universe. Sample size is 50 for this study.

Tools of Analysis

1.Questionnaire

2. Percentage Analysis

Analytical Tools

1.Graphs

2. Tables

3. Diagrams

 1.6 LIMITATIONS OF STUDY

1.     Very limited time available for this study

2.     Research is done through a sample survey, which is always prone to errors of bias and prejudice

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

CAPTER 2

LITERATURE REVIEW

REVIEW OF LITERATURE
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 favour of these MNCs and over the years coca-cola and pepsi have become the prominent players in the market.

                   Studies of soft drink market Indian soft drinks market grew 7.7% in 2008 to reach a value of$3.4 billion. In 2013,the Indian soft drinks market is forecast to have a value of $4.6 billion. An increase of 36.9% since 2008. All the major players in cola market put their best strategies to capture more and more out of this lucrative progress. In the modern arena of information, it takes something or someone special to please the consumer. A celebrity is often considered to be the vital basis for the brand association of a product and this fact becomes stronger when it comes to soft drinks industry in India. India is one country, which has always idolized the stars of the celluloid world. Therefore in the words of Mccracken, a celebrity endorser is someone who besides enjoying popularity and public recognition, uses this recognition to promote a consumer good or service by appearing in the advertisements for the same. It is not essential (rather it is seldom the case) that a celebrity in a particular field promotes the products only in that particular domine. It is the credibility of the endorser which helps in the repurchase or first time purchase of the product. It may be said that the celebrity transfers some of his/her traits to the product or service (or atlest it is so perceived by the customer). Even the studies conducted by Agrwal, Kamakura & Mathur and Mathur & Ranjan, emphasized the effectiveness of using a celebrity endorsers. In India there is an exponential potential for a celebrity endorsement to be perceived as genuinely relevant, thereby motivating consumers to go in for the product. No wonder India’s and market which has an estimated worth of more than $3000 million consists of around 30% of spending on ads featuring celebrities.

• With amplification in number of mass media option and competition for consumers attention, cola giants are increasingly using celebrity endorsement strategies to break through the clutter and enhance the equity for their brand. Although celebrity endorsement has emerged as a popular advertising practice, not much research has been done to evaluate the effectiveness of it in India. some of the facts which support the trend of celebrity endorsement in general and across soft drinks market in India are:

• Celebrity endorsement advertisement on TV up 49% in 2007
• Pepsi ropes in Chiranjeevi Jr to take on thums up in AP

Marketers overtly acknowledge the power of celebrities in influencing consumer-purchasing decisions. It is an ubiquitiously 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. Little is known about its effectiveness in India. Thus the primary motive behind this research project is to measure this effectiveness using some of the existing scale and methodologies and try and establish the relationships which exist between the attitude of the youths towards celebrity endorsement and their brand loyalty towards a low involvement product soft drink brand while paying special attention on the personality traits of the celebrity endorsing the soft drink brand. This should give us an insight into the consumer behaviour in response to celebrity endorsement in case of carbonated soft drinks.

CHAPTER 3

THEORETICAL FRAMEWORK

Every Research study is based on the theory. This theory is known as the theoretical framework of the study. That means the theoretical framework gives authentic support for successful completion of research work. One of the most competitive market in the world at present is the soft drink market in which cores of rupees on advertisement and other promotion activities are being spent. It is one of the many sectors, registering steady growth over a hundred years throughout the world. In India the soft drink industry is flourishing well with a wide range of brands 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 are studied.

What is soft drink?

A non-alcoholic, flavour, carbonated beverage,usually commercially prepared and sold in bottles or cans. Nonalcoholic beverage,usually carbonated, consisting of water (soda water), flavoring, and a sweet syrup or artificial sweetener. 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

Soft drinks can trace their history back to the mineral water found in natural spring.bathing in natural springs has long been considered a healthy thing to do; and mineral water was said to have curative power. Scientists soon discovered that gas arbonium or carbon dioxide was behind the bubbles in natural mineral water.

The marketed soft drinks (non-carbonated) appeared in the 17th century. They were made from water and lemon juice sweetened with honey. In 1679, the compagine delimonadiers Paris were granted a monopoly for the sale of lemonade soft drinks.

Raw materials used in soft drinks

There are different type of raw materials used in different soft drinks.most of the raw materials are :

Ø Water: the simple sweetened soft drink contains about 90% of water,while in diet drinks. It contains 95% of water.

Ø  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.

Ø  Acids: acids like citric acid & phosphoric acid are added to give refreshing tartness or bite & help in preserving the guality of a drink.

Ø Natural flavors: these are the flavors, which are extracted from fruits,vegetables,nuts,barks,leaves etc. in soft drink containing natural flavors& fruit juice.

Ø Artificial flavor: these are the flavors manufactured from natural extracts. This is used to give greater choice, in taste to consumers.

Ø 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.

Ø 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

Ø  Color: along with taste of soft drinks is also of very important, the company tries to maintain both taste & colur of the soft drink every where in the world.

Ø 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

Distributions of soft drinks

The soft drinks can be distributed on the basis of two concepts.

I. Distribution according to taste

2. Distribution according to taste

Ø Distribution according to taste:the soft drinks can be distributed in cola&nonc ola taste. Non cola taste consist of drink of orange, lime,mango etc. & clear lime.

Orange taste market is occupied by brands like fanta, mirinda orange&crush. Mango taste market occupied by brands like slice, maaza and frooti. Cloudly lime taste is occupied by 7 up, sprite. This is basically produced in green bottle as sunlight spoils the taste of the drinks.its color is transparent like water.

Ø Distribution according to the consumption: 80% of soft drinks are drinks are consumed on the spot, where it is sold at place like cinemas,railway stations etc. other 20% of the market of soft drinks is consumed at home or other place

TYPES OF SOFT DRINKS

FANTA

Fanta originated as a result of difficulties importing coca cola syrup into nazi germane during world War II due to trade embargo. To circumvent this, max Keith, the head of coca cola Deutschland(coca cola gmbh) during the second world war, decided to create a new project for the German market, using only ingredients  available in Germany at the time including whey and pomance – “leftovers of leftovers “ as Keith later recalled. The name was a result of a brief brain storming section, which started with Keith ‘s exhorting his team to “use their imagination (“fantasie” in German) to which one of his sales man, Joe Knipp, immediately retorted “fanta”

The plant was effectively cut off from coca cola head quarters during the war. After the war, the coca cola Corporation regained control of the plant, formula and trade mark to the new fanta product as well as the plant profit during the war.

Fanta was discontinued when the parent company was reunited with the German branch. Following the launch of several drinks by the Pepsi corporation in the 1950’s, coca cola competed by relaunching fanta in 1955. The drink was heavily marketed in Europe, Asia, Africa and South America.

SPRITE

Sprite is a colourless, lemon and lime flavoured, caffeine-free soft drink, created by the coca-cola company. It was developed in West Germany in 1959 as FANTA KLARE ZITRONE (“clear lemon fanta”) and introduced in the United States as sprite in 1961. This was coke’s response to the popularity of 7 up. It comes in a primary silver, green, and blue can or a green transparent bottle with a primarily green and blue label.

COCA-COLA

Coca-cola is a carbonated soft drink sold in stores, restaurant, and vending machines throughout the world. It is produced by the coca-cola referred to simply as coke (a registered trademark of the coca-cola company in the united states since march27, 1944). Originally indented as a patent medicine when it was invented in the late 19^th century by John Pemberton, coca-cola was brought out by businessman Asa Griggs Candler, whose marketing tactics led coke to its dominance of the world throughout the 20^th century.

The company produces concentrate, which is then sold to licensed coca-cola bottlers throughout the world. The bottlers , who hold territorially exclusive contracts with the company, produce finished products in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then sell and merchandise coca-cola to retail stores and vending machines. The coca-cola company also sells concentrate for soda fountains to major restaurants and food service distributors.

The coca-cola company has, on occasion, introduced other coca drinks under the coke brand name. The most common of these is diet coke, with others including caffeine – free coca-cola, diet coke caffeine-free,coca-cola cherry, coca-cola zero, coca-cola vanilla, and special versions with lemon, lime, or coffee. Inn 2013, coke products could be found in over 200 countries worldwide, with consumers downing more than 1.8 billion company beverage servings each day.

PEPSI

Pepsi is a carbonated soft drink that is produced and manufactured by pepsico. Created and developed in 1893 and introduced as brad’s drink, it was renamed as poepsi cola on aug 28, 1898 then to pepsi in 1961, and in select areas of north America, “pepsi-cola made with real sugar” as of 2014.

The drink pepsi was first introduced as “Brad’s Drink” in New Bern,North Carolina, United States, in 1893 by  Caleb Bradham, who made it at his drugstore where the drink was sold. It was renamed pepsi –cola in 1898,named after the digestive enzyme pepsin and kola nuts used in the recipe. The original recipe also included sugar and vanilla.Bradham sought to create a fountain drink  that was appealing and would  aid in digestion and boost energy .

In 1903,Bradham moved the bottling of pepsi-cola from his drugs stores to a rented warehouses that year, bradham sold 7968 gallons of syrup. The next year, pepsi was sold in six-ounce bottles, and sales increased to 19848 gallons. In 1909, auto mobile race pioneer Barney oldfield wasthe first celebrity to endorse pepsi cola,describing it as “A bully drink... refreshing, invigorating, fibracer before a race”. The advertising theme “delishes and healthful” was then used over to the next two decades. In 1926, pepsi received its first logo redesign since the original design of 1905. In 1929, the logo was changed again.

In 1931, at the depth of the great depression, the pepsi-cola company entered brankruptcy in large part due to financial losses incurred by speculating on the widely fluctuating sugsr prices as a result of World War I. Assets were sold and roy c. Megargel bought the pepsi trademark.Megargel was unsuccessful, and soon pespi’s assets were purchased by  Charles Guth, the president of Loft, inc. Loft was a candy manufacturer with retail stores that contained soda fountains. He sought to replace coco-cola at his stores fountains after coke refused to give him a discount on syrup. Guth then had lofts chemists reformulate the pepsi-cola syrup formula.

On three separate occasions between 1922 and 1933, the coco-cola company was offered the opportunity to purchase the pepsi-cola company, and it declined on each occasion.  

NATURE OF SOFT DRINK MARKET

Oligopoly

Indian soft-drink industry in an oligopoly market.coca-cola, Pepsi,parle agro etc
are the only producers.an oligopoly is a market dominated by a few large suppliers the degree of market concentration is very high (i.e.a large % of the
market is taken up by the leading firms).firms within an oligopoly produce
branded product (advertising and marketing is an important feature of
competition within such markets) and there are also barriers to entry.

Another important characteristic of an oligopoly is interdependence between
firms. this means that each firm must take into accounts the likely reactions of
other firms in the market when making pricing and investment decisions. This
creates un certainty in such markets which economists seek to model through the use of game theory.Economics in much is much like a game in which the
ayers anticipate one another’s moves.
 

By Promotional activities The ongoing interdependence between business can lead to implicit and explicit collusion between the major firms in the market. Collusion occurs when business agree to act as if they were in a monopoly position.

 
Key features of oligopoly market

Ø A few firms selling similar product

Ø Each firm produces branded products

Ø Likely to be significant entry barriers into the market in the long run which allows firms to make supernormal profits.

Ø Interdependence between competing firms. Business have to take into account likely reactions of rivals to any change in price and output.

Theories about oligopoly market

There are four major theories about oligopoly pricing:

1. Oligopoly firms collaborate to charge the monopoly price and get monopoly profits

2. Oligopoly firms compete on price so that price and profits will be the same as a competitive industry

3. Oligopoly price and profit will be between the monopoly and competitive ends of the scale

4. Oligopoly price and profits are “indeterminate” because of the difficulties in modeling interdependent price and output decisions

The several factors that make it very difficult for the competition to enter the soft drink

Market include

Barriers to entry:

Ø Cost of Establishment: Due to high capital intensive reguirement to establish new bottling plants, investors cannot entry into the market. This financial barrier can be a major barrier for new entrants

Ø Advertising expenses

Ø Brand image and loyalty

Ø Retailers shelf space and retail distribution channel

Ø Threats of substititute

Ø Switching cost: switching cost of the substitute product is very low.so customers Can easily switch to substitute products

Ø  Perceived price value: prerceived price value in this industry is very low because all products comparatively same and most of the times differentiated
Major market players

The Disadvantages of Soft Drinks

Dehydration

Sixty percent of our boady 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. Many sodas contain caeffine,which acts as a diuretic, increasing urination and leaving the body with less available fluid to carry out important function.addftionally, some diet sodas contain significant amounts of sodium,which may draw water from the cells and promote dehydration

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 elvates your blood glucose level and may increase your risk for cardiovascular disease. Additionally, may sodas contain high fructose corn syrup or HFCS as their primary sugar ingredient. HFCS may stress the pancreas and lead to fluctuating blood sugar levels. Consuming sugary sodas day after day can contribute to the onset of non-insulin dependent diabetes,or type 2 diabetes.

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 Weeksis equivalent to ingesting 3,920 extra calories,or a gain of 1.1 pounds if the calories are not burned. A 160-pound person must walk for 27 minutes at 3.5 miles per hour to burn off the calories in one can of cola, according to the calorie-expenditure analysis provided by the MayoClinic.com. If these calories are not burned, you may gain more than 12 pounds in one year. Additionally, sweet-flavored sodas may disrupt appetite signals and promote cravings for other sugary foods.

Calcium Depletion

Calcium is an essential mineral for strong bones and teeth. Consuming high amounts of phosphoric acid, a common ingredient in sodas, can deplete the calcium from your bones and decrease calcium absorption. Among women, this may lead to poor bone development or osteoporosis, a condition characterized by brittle and weak bones.

CHAPTER 3

DATA ANALYSIS & INTERPRETATION

Table-2

CLASSIFICATIO ON THE BASIS OF GENDER

SL.NO	GENDER	PERCENTAGE
1	Male	46 %
2	Female	54 %

  INTERPRETATION: The above table shows that 46 % of respondents are male and 54 % are females.

TABLE-3

CLASSIFICATION ON THE BASIS OF AGE

SL.NO	AGE OF RESPONDENTS	PERCENTAGE
1	15-20	64 %
2	21-25	10 %
3	26-30	14 %
4	30-35	12%

INTERPRETATION: Majority of the respondents are in the age between15 to 20, and minority of respondents are in the age of 21 to 25.

TABLE-4

PRESENT CONSUMER OF SOFT DRINKS

SL.NO	RESPONSE	PERCENTAGE
1	YES	100 %
2	NO	0 %

INTERPRETATION: The above table shows that 100 % of respondents are using soft drinks.

TABLE-5

SHOWING THE CONSUMER BRAND PREFERENCE OF SOFT DRINKS

SL.NO	BRANDS OF SOFT DRINKS	PERCENTAGE
1	Coco-cola	14 %
2	Pepsi-cola	12 %
3	Sprite	38 %
4	Fanta	10 %
5	Others	26 %

INTERPRETATION: The table shows that 38 % of customers are using Sprite, 14 % are using Coco-cola, 12 % prefer Pepsi-cola and 26 % prefer other brand.

TABLE-6

SHOWING THE SOURCE INFORMATION REGARDING SOFT DRINKS

SL.NO	SOURCE OF INFORMATION	PERCENTAGE
1	Media advertisement	52 %
2	Internet	10 %
3	Friends	16 %
4	News papers and magazines	10 %
5	others	12 %

INTERPRETATION: 52% of respondents get awareness through media advertisement and 10 % get awareness through internet, 16 % friends, 10 percentages get from news paper and magazines. 12 % get other sources like relatives, family, etc. .

TABLE-7

SHOWING THE CONSUMERS USING THE ABOVE STATED BRAND

SL.NO	NUMBER OF YEARS	PERCENTAGE
1	Last 5 months	14 %
2	1 year	12 %
3	1-2 years	24%
4	More than 2	50 %

INTERPRETATION: 50 % customers using the stated brand more than two years, 24 % suing the stated between the periods of 1 to 2 years. 14 % of customers are using the particular brand for last five months.

TABLE-8

SHOWING CONSUMER INFLUENCE TOWARDS ADVERTISEMENT

SL.NO	INFLUENCE OF ADVERTISEMENT	PERCENTAGE
1	Yes	70 %
2	No	30%

INTERPRETATION: 70 % are influenced by advertisement and 30 % are not-influenced by advertisement.

TABLE-9

SHOWING THE CONSUMERS’ OPINION OF THE BRANDS

SL.NO	BRAND	PERCENTAGE
1	Excellent	18 %
2	Good	62  %
3	No opinion	20 %
4	Bad	0 %
5	Poor	0 %

INTERPRETATION:  18% of customers say that their brands are excellent. The other 62 % are says that their brands are good. The remaining 20 % of respondents do not have any opinion about their brand. Nobody says that the brands that they preferred are bad or poor.

TABLE-10

SHOWING THE MOST COMMON PLACE FOR PURCHASE

SL.NO	COMMON PLACE	WEIGHTED AVERAGE
1	Convenience	4.56
2	Grocery	3.58
3	Stores	4.94
4	Wholesale warehouse	2.98
5	Restaurants	3.62
6	others	1.40

INTERPRETATION:  The above table shows that majority of respondents of purchase soft drinks from convenience stores and stores and its weighted average ( 4.56). Others purchase soft drinks from restaurants grocery etc. Minority of respondents purchase soft drinks from wholesale warehouse and other sources.

TABLE-11

SHOWING THE PURPOSE OF USING SOFT DRINKS AMONG CONSUMERS

SL.NO	PURPOSE	PERCENTAGE
1	Taste	14 %
2	Caffeine	6%
3	Refreshment	68%
4	Brand loyalty	6%
5	Others	6%

INTERPRETATION:  68% of respondents are using soft drinks for refreshments. 14% are for taste. Remaining customers give importance to caffeine, brand loyalty and other reasons. 

TABLE-12

SHOWING CONSUMERS BEHAVIOUR TOWARDS CHANGING THE BRAND

SL.NO	OPINION	PERCENTAGE
1	Yes	36%
2	No	64%

INTERPRETATION:  64% of respondents are not preferred to change the brand frequently. The 34% of respondents are preferred to change the brand.

TABLE-13

SHOWING THE PRICE OF CONSUMERS FAVOURITE BRAND IS REDUCED, WILL YOU BUY MORE OF IT

SL.NO	OPINION	PERCENTAGE
1	Yes	28%
2	No	72%

INTERPRETATION:  28% of respondents buy more soft drinks, when the price is reduced. 76% respondents do not buy more soft drinks, when the price is reduced.

          TABLE-14

SHOWING CONSUMER BRAND IS NOT AVAILABLE FOR PURCHASE WHAT WILL THEY DO

SL.NO	OPINION	PERCENTAGE
1	Post pone purchase	14%
2	Switch once to other brand	32%
3	Go to other shop	42%
4	Search for your preferred brand	12%

INTERPRETATION:  14% of respondents post pone their purchase when soft drinks not available for purchase. At this situation 32% respondents switch over to other brand. 42 % respondents go to other shops. Remaining 12 % respondents search for their preferred brand.

TABLE-15

SHOWING OTHER PRODUCT OF THE SOFT DRINK APPEAR IN THE MARKET WILL CONSUMER PREFER TO SHOP BUYING THIS BRAND AND NEW BRAND

SL NO	OPINION	PERCENTAGE
1	Not at all	14%
2	I may consider	48%
3	Yes	4%
4	Can’t say	34%

INTERPRETATION:  14% respondents not at all purchase other products of soft drinks which appeared in the market. 48% of respondents will consider the other product of soft drinks. 34% respondents can’t say anything about this situation. Remaining 4% will buy the other product of soft drink.

TABLE-16

SHOWING THE MOST FACTORS WHICH AFFECT THE BUYING DECISION

SL.NO	FACTORS	WEIGHTED AVERAGE
1	Quality and taste	6.56
2	Packaging	4.46
3	Celebrities	3.82
4	Price	4.44
5	Recommendations from friends and relatives	4.46
6	Medias	2.92
7	Others	1.34

INTERPRETATION:  Most of the people give importance to quality and taste with a weighted average of 6.56. Whereas second preference is give to packaging (W.A-4.46), price (4.44), recommendations from friends and relatives (4.46) and the least preference is given to medias (2.92).

TABLE-17

SHOWING THE COMSUMER PAY THE QUANDITY DO PREFER BUYING A PRODUCT

SL.NO	QUANDITY	PERCENTAGE
1	100ml-250ml	16%
2	250ml-500ml	42%
3	1 liter	32%
4	More than 1liter	10%

INTERPRETATION:  The table showing the consumers preference quantity for purchasing soft drinks. Majority of the respondents belongs 250ml-500ml. 32% choose the option 1 litre. 16% prefer 100ml-250ml and only 10% prefer more than 1 litre.

TABLE-18

SHOWING THE SATISFACTION LEVEL OF CONSUMERS

SL.NO	ITEMS	WEIGHTED AVERAGE
1	Price	3.70
2	Quality	3.82
3	Flavour and taste	3.86
4	Packaging	3.76
5	Brand	3.84
6	Advertisement frequency	3.56
7	Availability	3.72
8	Colour	3.22

INTERPRETATION: The above table shows that respondents are satisfied with price, quality, flavour and taste, packaging, brand, advertisement frequency, colour and availability of soft drinks as their weighted average (<3.5).

TABLE-19

STUDY THE CONSUMER VEIW OF SOFT DRINKS

SL.NO	VIEW	PERCENTAGE
1	As a health drink	10%
2	As an aid to put off thirst	68%
3	As a status symbol	12%
4	Other	10%

INTERPRETATION: The above table shows the views of consumer about soft drinks. 68% choose the option as an aid to put off thirst. 12% of respondents view is as status symbol. 10% view is as a health drink.

CHAPTER 4

FINDINGS, SUGGESTIONS AND CONCLUSION

FINDINGS

·        The majority of respondents are prefer sprite and secondly preferred others

·        Majority of the reason for preferring a selected brand is refreshment

·        Majority of respondent don’t like to change brand frequently.

·        Most of the respondents view soft drink as an aid to put off thirst

·        Majority of the consumer do not buy more soft drinks at the time of reducing the price

·        Media advertisement is the most influencing medium while purchase of soft drinks

·        Age between 15 to 20 prefer to buy more

·        In this survey major respondents are female

·        Majority of the consumers opinion of the brand is good

·        Majority of the consumers are satisfied with flavour and taste

·        Most of the consumers affected by quality and taste for buying decision

SUGGESTIONS

Comsumption 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:

Ø Reduce their consumption of regular sports drink, soda or pop and other sugar – sweetened beverages.

Ø Increase their consumption of water and low fat or fat milk

Ø Reduce youth’s access to sugar- sweetened beverages to decease consumption.   

Ø Encourage adolescents to drink water and low fat- free milk, or limited amounts of 100% fruit juices, as an option.

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 major part of the soft drink consumers are in 15-20 age groups. The most preferred brand is Sprite and second position to others. 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 competition between the brands lead to a high influence in buying behaviour of the consumers because their marketing strategy. 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 believe soft drink as a status symbol.

The nature oif soft drink markets are oligopoly .i.e.  oligopoly is a market dominated by a few large suppliers the degree of market concentration is very high (i.e a large % of the market is taken up by the leading firms) . Firms with in an oligopoly produce branded products (advertising and marketing is a important feature of competition with in such markets) and there are also barriers to entry.

Soft drink consumption is no good for health there are so many disease incur through soft drink consumption but our changes in life styles soft drinks consumption 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.  

BIBLIOGRAPHY

BOOKS

Ø Business research methods -  Dr. K . venugopalan

Marketing management – Philip kotler

Marketing management -   A. vinod

APPENDIX

A STUDY ON BRAND PREFERENCE OF SOFT DRINKS AMONG YOUTH

1. Name:                           

2. Gender:  Male                Female   

3. Age:   15 -20              21 – 25              26 – 30              30 – 35

4. Do you drink soft drinks?         Yes                 No

5. If yes which brand of soft drink do you prefer?

Coca –cola            Pepsi-cola            Sprite                Fanta              Others  

6. What is the source of information regarding soft drink?

Media advertisement             Internet            Friends              Newspaper & magazines              Others

7. How long you have been using the above stated brand?

Last 5 months             1year              1 to 2 year              more than 2

8. Do you think advertising influence you to drink soft drinks?

 Yes             No

9. What is your opinion of the brand?

Excellent             Good            No opinion            Bad             Poor(

10. Where is the most common place that you purchase soft drinks? (put ranks)

Convenience stores            Grocery             Stores            Wholesale ware house           Restaurants              Others (specify):

11. Why do you drink soft drinks?

Taste            Caffeine           Refreshment            Brand loyalty            Others

12. Do you like to change the brand frequently?    Yes             No

13. If the price of your favourite brand is reduced, will you buy more of it?

Yes             No

14. If your preferred brand is not available for purchase what will you do?

Post pone purchase            Switch over to other brand            Go to other shop           Search for your preferred brand

15. If another product of the soft drink appears  in the market will you prefer to stop buying this brand & buy new brand?

Not at all            I may consider            Yes            Can’t say

16. Which factor mostly affect your buying decision? (put ranks)

Quality & taste           Packaging            Celebrities             Price             Recommendation from

Friends & relatives               Medias             Others(specify)

17. How much quantity do you usually prefer to buy?

100ml-250m   l          250ml-500ml              1 litre            more than 1 litre

18. Rate the level of influence of following factors on your purchase decision (tick the desired column)

items	Very high	High	Average	Low	Very low
Price
Quality
Flavour &taste
Packaging
Brand
Advertisement frequently
Availability
Colour

19. Rate how much are you satisfied with the following factors in your preferred soft drinks?

Highly satisfied            Satisfied             No opinion           Dissatisfied             Highly dissatisfied

20. How do you view soft drinks?

As a health drink               As an aid to put off thirst             As a status symbol             Any other (specify)

21. Do you have any suggestions and recommendation for the usage of soft drink