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1.0 Introduction To The Topic

The document provides a comprehensive overview of the soft-drink industry, detailing its historical development, major players, and market dynamics, particularly in Canada and India. It highlights the evolution of carbonated beverages, key brands like Coca-Cola and Pepsi, and the impact of diet drinks on the market. Additionally, it discusses recent industry challenges and innovations, including new product launches and regulatory issues.

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Gajendra Garg
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0% found this document useful (0 votes)
40 views64 pages

1.0 Introduction To The Topic

The document provides a comprehensive overview of the soft-drink industry, detailing its historical development, major players, and market dynamics, particularly in Canada and India. It highlights the evolution of carbonated beverages, key brands like Coca-Cola and Pepsi, and the impact of diet drinks on the market. Additionally, it discusses recent industry challenges and innovations, including new product launches and regulatory issues.

Uploaded by

Gajendra Garg
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 64

1.

0 INTRODUCTION TO THE TOPIC

1
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 275-550 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

1
away, they were manufactured with rounded bottoms. By the mid-1800s, 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.

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; Québec, 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

3
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 diet-drink 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, 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.
2

MAJOR PLAYERS IN SOFT DRINKS SEGMENT

4
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

5
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

6
“ 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

7
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

8
“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 today’s youth to trust their instincts, influence them to be true who
they are and to obey their thirst.

MAAZA

9
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!!!

10
Pepsi cola is a carbonated beverage that is produced and manufactured by Pepsi
co. It is sold in stores, restaurants and from vending machines. The drink was first
made in the 1890’s in North Carolina.
The brand was trademarked on June 16, 1903.There have been many Pepsi
variants produced over the years.

 Diet Pepsi
 Crystal Pepsi
 Pepsi twist
 Pepsi max
 Pepsi samba
 Pepsi blue
 Pepsi gold
 Pepsi holiday spice
 Pepsi jazz
 Pepsi x(available in Finland & brazil)
 Pepsi next(available in Japan & south Korea)

11
2.0 INTRODUCTION TO THE ORGANIZATION/INDUSTRY

12
STUDY OF GROWTH OF SOFT DRINK MARKET

SOFT DRINKS
Carbonated drinks are dominated by artificial flavors based on cola, orange and
lime with Pepsi and coca-cola dominating the market. The entire part of the drink
is based on its artificial flavors and sweetening agents as no natural juice is used.

MARKET

 Cola products account for nearly 61-62% of the total soft drinks market.
 Two global majors’ Pepsi and coke dominate 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.

8
RECENT ISSUES

13
1. China rejects Coke bid to take-over major juice maker

China has rejected Coca-Cola's $2.5 billion bid to buy a major Chinese juice
maker. The purchase of Huiyuan Juice Group Ltd would have been the biggest
foreign acquisition of a Chinese company to date. The proposed purchase was
rejected on anti-monopoly grounds, the Chinese commerce ministry announced on
its website.
Coca-Cola's bid in September prompted an outcry by nationalists who urged the
government to bar foreigners from acquiring one of China's most successful
homegrown brands. Rival juice producers warned that the acquisition would give
Coca-Cola too dominant a position in China's beverage market. A Coca-Cola
spokesman in Hong Kong learned of the rejection of the sale had no immediate
comment. Huiyuan's founders and major shareholders already had endorsed the
sale.
If Coke were to take over Huiyuan, it will dominate the soft drinks market in China,
which not only hurts consumers, but also other sector participants. Huiyuan
controls more than a tenth of the Chinese fruit and vegetable juice market that
grew 15% last year to $2 billion. Coca-Cola has a 9.7% share and dominates in
diluted juices.

2. Pepsi's Slice kicks off the new season with 'Aamsutra'


PepsiCo's popular mango juice drink brand- Slice kicks off the 2009 season with
it's new ‘Aamsutra’ concept.
According to Homi Battiwalla, business head, juice & juice drinks, PepsiCo India,
Slice had seen powerful consumer momentum post the re-launch of 2008. The
new winning formulation has been appreciated by consumers. Aamsutra has
driven strong disruption in the juice and juice drink category. All of this has made
Slice the fastest growing mango drink brand in the country.
"South India is the lead market for mango drinks in the country. Andhra Pradesh is
the biggest mango market and also the fastest growing market for Slice and
mango drinks in the country. Tamil Nadu is amongst the top three states and Slice

14

9
isthe market-leader in Tamil Nadu," he added Pepsi has now opted for a new
brand ambassador, Katrina Kaif.
The creative thought behind the new communication was to further enhance the
Slice experience into dimensions of pleasure, sensuality and indulgence. Last
year's commercial was about enumerating the principles of 'Aamsutra' or the art of
experiencing pure mango pleasure with the new Slice. This year, the commercial
portrays the next level to bring alive the mango indulgence, stated Hari Krishnan,
Vice president, JWT.
The company has now opted for a 360 multimedia campaigns involving digital,
print, radio, impact outdoors and sampling in core markets.

3. Parle Agro launches lemon flavoured drink "LMN"


Parle Agro, one of the leading food & beverage companies in India, has launched
a new fruit-based lemon drink LMN in the non-carbonated segment. The new
brand is a natural lemon juice drink and the only brand in India with a taste closest
to home made, fresh lime water (Nimbu pani). According to the company, LMN will
offer consumers a healthy, refreshing drink with the goodness of vitamin C. Every
summer, the Indian beverage market has seen cola majors battle it out. This
summer, the launch of LMN will see the cola wars taking a back seat and the
battle spilling over to the non-cola segment, to be more precise in the nimbu paani
category. PepsiCo India last week launched a nimbu pani drink, Nimbooz, under
the 7Up brand.
On the occasion of LMN's launch, Nadia Chauhan, joint managing director and
CMO, Parle Agro, said, "Nimbu pani has traditionally been India's most commonly
consumed cold beverage. In fact the idea of a branded lemon drink is so simple
that you would wonder why nobody thought of it earlier. The challenge for us was
packaging a natural product while retaining its fresh, original taste throughout its
shelf life”
LMN will be available in 110 ml Tetra, 200 ml Tetra and 500 ml PET packs priced
at Rs 5, Rs 10 and Rs 23 respectively. The company aims to touch a turnover of
Rs 3000-3500 crore by 2011.

15
The company will target both (youth and adult) segments of consumers to turn
them into branded consumers of nimbu pani. Besides this LMN will also target an
emerging segment of consumers who are looking for a healthy and refreshing
beverage in the country. "For the last 20 years, Parle Agro has been the market
10
leader in fruit based beverages, we have constantly worked keeping in mind Indian
preferences while formulating products that cater to the Indian palate. It is without
any doubt that only an Indian company can understand what real nimbu pani
tastes like and what the Indian consumer wants in a packaged offering," Chauhan
added.
Further, the company claims that packaged nimbu pani will have tremendous
growth potential, higher than other packaged drinks mainly because of a major
shift in consumer behavior. Today, the beverage consumer is looking for hygiene,
convenience, refreshing taste, affordability and year-round availability. The name
LMN is derived from the SMS version of the word lemon. Parle Agro also owns
other fruit drink brands like Frooti, Appy Fizz and packaged drinking water, Bailey.

4. PepsiCo launches 'Nimbooz,' packaged lemon juice with no fizz and


artificial flavors.
Pepsico India has launched its packaged nimbu paani, Nimbooz, under its 7Up
brand. The home-made nimbu paani or lime juice has been specially created to
suit Indian tastes.
The lemon juice, no fizz and artificial flavours, is available in trendy, convenient
packs.
The drink offers great value to consumers in three packaging formats of 200 ml
returnable glass bottles (RGB), 350 ml PET and 200 ml Tetra attractively priced at
Rs 10, Rs 15 and Rs 10, respectively.

According to Ms Punita Lal, Executive Director- Marketing, PepsiCo India,


Nimbooz, is specially developed to suit Indian tastes and preferences.
"Nimbooz is an affordable offering for consumers on the go because of its ready-
to-drink format that is both convenient and hygienic. The proposition of the Indian

16

11
refresher perfectly captures the mass appeal of this product and will certainly drive
consumer connect, stated Ms Alpana Titus, Executive VP-Flavours, PepsiCo
India.
PepsiCo has drawn up an intensive consumer activation campaign to market
Nimbooz. The 360 degree marketing communication plan will revolve around
building awareness through multi-city launches and road shows, comprehensive
3D activation, leveraging Out-of-Home (OOH) media, radio, press and outdoors.
Aggressive trial generation and sampling initiatives will also be taken forward
across major cities of the country. A special 'Nimbooz Highway Gadi' has been
created that will visit the four major highways connecting Delhi to Jaipur,
Dehradun, Agra to drive trails and consumer education.

5. Coke launches fruit-flavoured Fanta Apple nationally


After successfully introducing it in southern markets last year, Coca-Cola India has
launched its fruit-flavoured soft drink 'Fanta Apple' nationally. The product is
available in 200 ml and 300 ml returnable glass bottles and also in 500 ml PET
pack priced at Rs 8, Rs 10 and Rs 22 respectively. During the Fanta Apple launch
in October 2008, Venkatesh Kini, marketing vice-president, Coca-Cola India, said
that the company had planned to reach about 3.5 lakh customers with sample
apple flavoured drink to extend its market leadership in the fruit flavoured segment
in Andra Pradesh and Tamil Nadu.
"As per consumer research, we have found that after orange, apple is the most
preferred fruit in the country and Fanta Apple has been developed specially for the
Indian palate," Kini said on Monday. According to experts, the nationwide launch
of Fanta Apple is a part of the company's $250 million business plan for the
country.
Fanta Apple is the second flavour after Fanta Orange under "Fanta" brand of the
company. "We have had an excellent response down south with a reused value to
the drink and with the national launch of Fanta Apple, we are stepping stones to
extend Coca Cola India's market leadership in the fruit-flavoured sparkling drink

17
segment," Kini added. The company has also announced Bollywood actress
Genelia D'Souza as the new brand ambassador of the Fanta brand.
According to reports, the current expected Indian soft drink market is about Rs
6,000 crore, in which the company shares about 50% market with its various
brands like Coke, 7 Up, Fanta, Sprite and Thums Up.

HEALTH ISSUES CAUSED BY SOFT DRINKS

1) CERTAIN SOFT DRINKS AND CANCER MAY BE RELATED

18
Francisco Contraries, M.D., of the Contraries Cancer Clinic in Kiajuana, Mexico
said, "Cancer is like a plant cell; it can't live in an oxygen-rich environment. cola
drinks make our bodies poor in oxygen. cancer is the second cause of death in
America. The average American is consuming 800 Or more soft drinks annually.
Be more responsible for your own life; doctors have no responsibility for another's
health."

2) SOFT DRINKS OFFEND THE KIDNEYS

A three year study of over 1,000 men with a history of kidney stones showed:
"There was a clear-cut difference in the group's experiences, with much less renal
colic in the men who had avoided soft drinks. Of those who continued to use soft
drinks, there was also a big difference in outcome depending upon the nature of
the soft drink consumed. Soft drinks acidified with phosphoric acid were the worst
offenders. Colas of all kinds, of course, are well known for their high phosphoric
acid content."

3) COLA DRINKS PROVIDE ZERO NUTRIENTS

As pointed out by Beatrice Hunter in her book, CONSUMER BEWARE (published


in 1971), "Nutritionally, soft drinks are low in value. Their food energy comes solely
from refined sugar. Every element of nutritional importance, except calories, is
zero. Soft drinks have much in common with hard liquor, claimed the co-discoverer
of insulin, Dr. Charles Best. Cirrhosis of the liver has been found among teenagers
who drink large quantities of soft drinks, as well as among chronic alcoholics." Can
we live without a functioning liver? No. And do doctors have a cure for cirrhosis of
the liver? Not really!

4) CAFFEINE IS ADDICTIVE; COLAS PROVIDE IT

19
Soft drinks, including the cola and pepper-type drinks that have caffeine in them,
are the number one beverage of Americans today, with coffee second. Caffeine is
a drug and it acts as a stimulant to the central nervous system. "In the amounts
presently being consumed, it can cause insomnia, nervousness, irritability, anxiety
and disturbances in the heart rate and rhythm. Cola and pepper-type drinks
account for 80-90 percent of the caffeine added to foods today. Its long term
effects on people are not clearly known."

5) BIRTH DEFECTS AREA POSSIBILITY

Here is advice on caffeine from the FDA. "In making the public announcement in
September of caffeine's possible dangers to unborn children, FDA commissioner
Dr. Jere E. Goyan urged prudence by pregnant women in the use of caffeine
products. Goyan's words to mothers-to-be: "So while further evidence is being
gathered on the possible relationship between caffeine and birth defects, a
prudent and protective mother-to-be will want to put caffeine on her list of
unnecessary substances which she should avoid." The old saying that a pregnant
woman is "eating for two" has a special meaning in regard to caffeine.

The Commissioner also noted that studies to date support the wisdom passed
down from generation to generation that caffeine is not for pregnant women or
children. "We hope some day to have better scientific assessments," Goyan said,
"but for now adhering to the guidance of our parents seems to be the most prudent
course."

6) ANOTHER PROBLEM: CARAMEL COLORING

"Cola drinks contain caramel coloring which, according to some researchers, has
genetic effects and is a cancer-causing suspect. Polyethylene glycol is used as an
ingredient sometimes. Glycol is used in anti-freeze in automobiles and as an oil
solvent." Perhaps you have noticed that pouring cola drinks on your windshield in
a snow or ice storm will keep the windshield from freezing over with ice.

20
7) BUBBLES AND FIZZ - NOT INNOCENT

"The bubbles and fizz in soft drinks can potently burn human insides; this is
caused by the phosphoric acid and carbon dioxide. The phosphorus in the acid
upsets the body's calcium-phosphorus ratio and dissolves calcium out of the
bones. This can eventually result in osteoporosis, a weakening of the skeletal
structure, which can make one susceptible to broken bones. Also, the phosphorus
fights with the hydrochloric acid in human stomachs and renders it ineffective. This
promotes indigestion, bloating and gassiness in many individuals. Carbon dioxide
is a waste product exhaled by humans, but they ingest it when they drink cola
drinks."

8) METABOLISM CAN BE ALTERED: THAT SPELLS TROUBLE


Heavy soft drink consumption can interfere with your body's metabolization of iron
and diminish nerve-impulse transmission. Sodas may contain - but are not
required to disclose - such ingredients as ethyl alcohol, sodium alginate (possibly
hazardous for pregnant women), brominated vegetable oil (found harmful to vital
organs of animals and considered a health risk to heavy consumers of beverages
containing it) and caffeine.

9) BLOOD PRESSURE ALTERATION: ON THE HIGH SIDE

Diet sodas that are low in calories are high in sodium. Six ounces of regular Pepsi
cola has 5 mg of sodium; Diet Pepsi has 31 mg (But who only drinks 6 oz at a time
now? - classic Coke Cola has 19 mg sodium. High blood pressure is very common
ailment in our society, I wonder why And who shouldn't have high sodium in their
diets? My personal answer to that question, is that the condition which causes a
person to have high blood pressure should be considered a condition where
limiting sodium intake would be helpful. Here are a few of those; certain tumors,
kidney disease, adrenal or thyroid or pituitary gland malfunction, even diabetes
and arteriosclerosis or hardening of the arteries. Soft drinks should be off limits to
persons with these conditions.

21
10) HEALTH DANGERS OF REUSING PLASTIC
Many are unaware of poisoning caused by re-using plastic bottles.
Some of you may be in the habit of using and re-using your disposable SOFT
DRINK BOTTLES (eg. Pepsi. Coke, Sprite etc), keeping them in your car or at
work. Not a good idea. In a nutshell, the plastic (called polyethylene terephthalate
or PET) used in these bottles contains a potentially carcinogenic element
(something called diethyl hydroxylamine or DEHA).
The bottles are safe for one-time use only; if you must keep them longer, it should
be or no more than a few days, a week max, and keep them away from heat as
well. Repeated washing and rinsing can cause the plastic to break down and the
carcinogens (cancer- causing chemical agents)can leach into the water that YOU
are drinking. Better to invest in water bottles that are really meant for multiple
uses. This is not something we should be scrimping on. Those of you with family -
please advise them, especially for their children's sake."

22
3.0 OBJECTIVES OF THE STUDY

The objectives of this project are as under:

23
1. To study the preferences of the people for soft drinks.

2. To find whether the consumers are aware regarding the adverse effect of soft

drinks concerning their health

3. To find out the factor(s) that influences the consumer’s consumption of soft

drinks.

4. To test the know-how of the consumers regarding the various existing brands

of soft drinks and fruit juices.

5. To find out how the beverage is positioned in the mind of the consumers.

24
`

4.0 SCOPE OF THE STUDY

25
Scope of the study means the area of the study to which this project is limited. In
other words, Scope means the length and breadth of the study.

1. This study is confined to Mathura Town region covering areas of radius of 5

Kms.

2. Seasonal drinks are not considered in the study.

3. We are considering only canned and bottled drinks

4. We are not considering water & alcoholic drinks.

26
5.0 USE & IMPORTANCE OF THE STUDY

27
Study provide what will be the effect of advertisement on soft drink companies

1. To adopt proper strategy for making best promotional planning.

2. To compare and benchmarking with competitors.

3. To increase market share and profit maximization.

4. To maintaining market share.

28
6.0 METHODOLOGY ADOPTED

29
Research methodology may be understood as all those methods/techniques that
are used for conduction of research. Thus it refers to the methods the researchers
use in performing research operations. In other words, all those methods, which
are used by the researchers during the course of studying his research problem,
are termed as research methods. Since the object of research is to arrive at a
solution for a given problem, the available data and the unknown aspects of the
problem have to be related to each other to make a solution possible.

6.1 UNIVERSE OF THE STUDY


The Universe for the purpose of this study will include Mathura Region.
6.2 SAMPLE SIZE
The sample size for the purpose of this study will include 80 persons.
6.3 SAMPLING UNIT
Consumers
6.4 SAMPLING METHOD
Simple random sampling
6.5 RESEARCH INSTRUMENT
Structured Questionnaire

SOURCES OF DATA COLLECTION:

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.
STATISTICAL TOOLS USED

30
The main statistical tools used for the collection and analyses of data in this
project are:
 Questionnaire
 Pie Charts
 Bar Diagrams

31
7.0 DATA ANALYSIS AND INTERPRETATION

32
The data, after collection, has to be processed and analyzed in accordance with
the objective laid down for the purpose of the research work. This is essential for
ensuring that we have all relevant data for making contemplated comparisons and
analysis. The term analysis refers to the computation of certain measures like
editing, coding, classification and tabulation of collected data so that they are
amenable to analysis along with searching for patterns of relationship that exist
among data-groups. The term interpretation refers to the task of drawing
inferences from the collected data after an analytical and/or experimental study. In
fact, it is a search for broader meaning of research findings.

There are various methods of analyzing the data. But in this project work, I used
Bar charts & Pie charts for analyzing the collected data, which is prepared by
using Excel Sheet. In this project work, Pie charts & Bar charts are prepared with
the help of collected data, which is being collected through Primary and Secondary
Source. The graphical presentation of the data is helpful in understanding the each
& every aspect of the collected data very easily.

33
DATA ANALYSIS

34
1) Do you like soft drinks?

YES NO
83% 17%

Interpretation:
From the survey it was found that amongst 80 respondents.

a) 83% of the respondents likes soft drinks.

b) 17% of the respondents don’t likes soft drinks.

35
2-Frequency of consumption of soft drink in a week?

Daily 2-4 Times More than 4 times once in a week


6% 3% 11% 58%

Interpretation:
From the survey it was found that amongst 80 respondents.
a) 6% of the respondents consume Soft Drinks daily.
b) 25% of the respondents consume Soft Drinks 2-6 times.
c) 11% of the respondents consume Soft Drinks more than 4 times.
d) 58% of the respondents consume Soft Drinks once in a week.

36
3- In what occasions, do you do you often consume the soft drinks?

Feeling Without any Parties Hard


thirsty reason Celebrations work
38% 36% 36% 1%

Interpretation:
From the survey it was found that amongst 100 respondents.
a) 38% of the respondents consume Soft Drinks when they feel thirsty.
b) 36% of the respondents consume Soft Drinks at the time of celebrations.
c) 36% of the respondents consume Soft Drinks without any reason.
d) 1% of the respondents consume Soft Drinks on other occasions.

37
4- What induces you to buy Soft Drinks?

Price & Health Status Taste Variety Advertisemen


Quantity Drink symbol t
8% 5% 5% 50% 13% 13%

Interpretation:
From the survey it was found that amongst 100 respondents.
a) 08% of the respondents consume soft drinks because of its price.
b) 05% of the respondents consume soft drinks because it is a health drink.
c) 05% of the respondents consume soft drinks because it is a status symbol.
d) 50% of the respondents consume soft drinks because of its taste.
e) 13% of the respondents consume soft drinks because of variety.
f) 13% of the respondents consume soft drinks because of Advertisement
g) 26% of the respondents consume soft drinks because of its variety.

38
5- Do advertisements affect your purchases?

To Greater To Lesser
To Great Extend Neutral To Less Extend
Extend Extend
13% 30% 35% 13% 10%

Interpretation:

From the survey it was found that amongst 80 respondents.

a) 13% of the respondents think that advertisements affect their purchases to


greater extend
b) 30% of the respondents think that advertisements affect their purchases to
great extend.
c) 35% of the respondents thinks that advertisement affects their purchases to
neutral
d) 13% of the respondents thinks that advertisement affect their purchases to
less extend
e) 10% of the respondents thinks that advertisement affect their purchases to
lesser extend.

39
6- Which soft drink do you like more?

Coca cola Pepsi Miranda Limca Maaza Other


10% 21% 28% 5% 18% 19%

Interpretation:
From the survey it was found that amongst 80 respondents.
a) 10% of the respondents consume Cocacola.
b) 21% of the respondents consume pepsi.
c) 28% of the respondents consume miranda.
d) 5% of the respondents consume Limca
e) 18% of the respondents consume Maaza
f) 19% of the respondents consume other soft drink

40
7-These are the other soft drink which are preferred by people

7-UP Dew Tropicano Slice Frooti Fanta Sprite


5 3 1 2 1 1 2

41
8-Do you take the soft drink every time?

YES NO
31% 69%

Interpretation:

From the survey it was found that amongst 80 respondents.

a) 31% of the respondents consume soft drink every time.


b) 69% of the respondents doesn’t consume soft drink every time.

42
9-Which Flavor do you like most?

Mango Orange Lemon Apple Others


24% 31% 21% 10% 14%

Interpretation:
From the survey it was found that amongst 80 respondents.
a) 24% of the respondents like mango flavor.
b) 31% of the respondents like orange flavor
c) 21% of the respondents like lemon flavor.
d) 10% of the respondents like apple flavor
e) 14% of the respondents like some other flavor
f) Other flavours include strawberry, vanilla, grape, etc

43
10-How do you rate canned juices as compared to fresh juices?

Equivalent to Have artificial healthy with


not as healthy
fresh juice added flavor preservatives
8% 33% 10% 50%

Interpretation:
From the survey it was found that amongst 80 respondents.
a) 8% of the respondents think canned juices are Equivalent to fresh juices.
b) 33% of the respondents think canned juices Have artificial added flavor.
c) 10% of the respondents think canned juices are Healthy but have
preservatives.
d) 50% of the respondents think canned juices are not as healthy

44
11-Do you think taking too much soft drink would cause health problems?

Yes No No comment
65% 15% 20%

Interpretation:
From the survey it was found that amongst 80 respondents

a) 65% of the respondents think that too much consumption would cause
health problem.
b) 33% of the respondents think that soft drink consumption will not cause any
health problem.
c) 10% of the respondents didn’t have any opinion on this.

45
12-Have these drinks caused any health problems for you?

Yes No
15 65

Interpretation:
From the survey it was found that amongst 80 respondents

a) 81% of the respondents didn’t have any health problem after having soft
drink.
b) 33% of the respondents did have some health problem after the
consumption of soft drink.

46
13- Are you aware that you are priced more than 10 times than of the real price of
the drink?

Yes No
50% 50%

Interpretation:

From the survey it was found that amongst 80 respondents

Only 50% of the respondents know that they are priced 10 times more than of
real price

47
14-Considering the TV ad. Which soft drink ad do you like more?

Other
Coca cola Pepsi Mirinda Thumsup Maaza specify
13% 23% 20% 29% 5% 11%

Interpretation:
From the survey it was found that amongst 80 respondents.
a) 13% of the respondents like the advertisement of cocacola.
b) 23% of the respondents like the advertisement of pepsi
c) 20 % of the respondents like the advertisement of Miranda
d) 29% of the respondents like the advertisement of thumpsup
e) 5% of the respondents like the advertisement of maaza
f) 11% of the respondents like the advertisement of other softdrink .

48
15-After seeing the ad did you like to switch on to that one?

Yes No
38% 63%

Interpretation:

From the survey it was found that amongst 80respondents.

a) 41% of the respondents didn’t switch to other soft drink after seeing the ad .
b) 39% of the respondents did switch to other soft drink after seeing the ad .

49
16-After the plachimada incident have you reduced consuming soft drinks?

Yes No
49% 51%

Interpretation:

From the survey it was found that amongst 80 respondents.

a) 51% of the respondents did reduce consumption after plachimada incident.


b) 49% of the respondents didn’t reduce consumption after plachimada
incident.

50
17-Do you think the superstar should stop promoting unhealthy soft drinks?

Yes No No comments
46% 23% 31%

Interpretation:
From the survey it was found that amongst 80 respondents.

a) 46% of the respondents feel that super star should stop promoting
unhealthy soft drinks.
b) 23% of the respondents don’t have any problem.
c) 31% of the respondents don’t have any comment.

51
18-What all changes do you want the manufacture to make in it to promote sale?

Quality Price Advertisement More flavour Other


specified
48% 33% 14% 10% 0%

Interpretation:

From the survey it was found that amongst 80 respondents


a) 48% of the respondents want manufacture to increase quality to promote
sale.
b) 33% of the respondents want manufacture to change price to promote sale.
c) 14% of the respondents want manufacture to put more concentration on
advertisement to promote sale.
d) Only 10% of respondent want manufacture to add more flavour to soft drink
so as to promote sale.

52
19-In your opinion which all deceases could the pesticides in the soft drinks
cause?

Pregnancy
Cancer Paralysation Tooth decaying issues Don’t know
25% 13% 26% 11% 25%

Interpretation:
From the survey it was found that amongst 80 respondents.
a) 25% of the respondents think that cancer is caused by the pesticides in soft
drinks
b) 13% of the respondents think that paralysation is caused
c) 26% of the respondents think that tooth decaying is caused by the
pesticides in the soft drinks.
d) Out of this about 7% of the respondents thinks that all the above deceases
are caused by pesticides.
e) 25% of the respondents don’t know what decease is caused by the
pesticides in the soft drinks.

53
20- Soft drinks such as colas contain significant quantities of?

Caffeine Nicotine Tannin Rennin Don’t know


40% 10% 3% 4% 43%

Interpretation:

From the survey it was found that amongst 80 respondents

a) 40% of the respondents know that soft drinks contain caffeine.


b) 10% of the respondent thinks that there is nicotine in soft drinks.
c) 3% of the respondents know that soft drinks contain tannin.
d) 4% of the respondents know that soft drinks contain rennin.
e) 43% of the respondents don’t have any knowledge what soft drink contain.

54
21-What are the things that govt. need to do, to stop the unhealthy practices
carried down by soft drink companies?

Control on
Increase standards Frequent quality check Advertisement
30% 59% 11%

Interpretation:
From the survey it was found that amongst 80 respondents.
a) 30% of the respondents feel that government should increase the
standards.
b.) 59% of the respondents feel that there should be frequent quality check.
c) 11% of the respondents feel that there should be control on advertisement.

55
22-Do you prefer the usage of plastic bottles of soft drinks?

Yes No
64% 36%

Interpretation:
From the survey it was found that amongst 80 respondents

a) 64% of the respondents prefer the usage of plastic bottles.


b) 36% of the respondents do not prefer the after use of plastic bottles.

56
57
8.0 FINDINGS

After analyzing & interpreting the data received from the respondents, following
findings have been drawn:

1. 83% people like soft drinks.

2. 58% people use soft drink in a week.

3. 38% people drink soft drinks when they thirsty,36% drink without reason.

4. 50% people purchase soft drinks because they attract with taste.

5. 35% people purchase soft drinks because they affect with advertisement.

6. Most likeable brand is mirinda then pepsi.

7. 31% people use soft drinks everytime.

8. Flavor like most orange-31%,mango-24%,lemon-21%.

9. 33% people says soft drinks added artificial flavor.

10. 50% says it became unhealthy.

11. 50% people says it charge 10 times than real price.

12. Most likeable ads on TV is thumsup then pepsi and mirinda.

13. 38% people switchover after ads.

14. 46% says that superstar should not advertise for soft drinks because it become
unhealthy.

15. 64% people says plastic bottle should use for soft drinks.

58
59
9.0 CONCLUSION

On the basis of the findings obtained from the study we may conclude that

1. An important finding that emerged out of the survey was that 83% of people

like to have soft drinks while 17% not like.

2. Through the research it was conveyed that weekly consumption of soft drinks

is more than daily consumption

3. Most of the respondents view soft drinks as an aid to put off thirst

4. A majority of the respondents consume soft drinks at the time of parties &

celebrations.

5. Most of the respondents consume soft drinks because of its taste.

6. Most of the respondents were of the strong view that advertisements affect

their purchases.

7. Considering the TV ad thums up is liked mere but TV ad does not made most

of the consumer switch on to that one.

8. About half of the respondent told that taking too much of the soft drink would

cause health problems but very few of them caused health problem before.

9. Most of the respondent like Miranda since they like orange flavor.

10. 49% of them reduced consuming soft drinks after plachimada incidents.

11. Most of them concluded while saying that the govt. to do frequent quality check

in order to increase sale without causing harm to consumers.

60
61
10.0 RECOMMENDATIONS & SUGGESTIONS

1. In the survey conducted, it was suggested by most of the respondent that govt.

should have frequent quality check in order to promote sales and to attain

consumer satisfaction.

2. Frequent consumption of soft drink will cause health problems.

3. From the survey more than half of the respondent suggested that they prefer

use of plastic bottles instead of other.

4. Advertisement acts as a very important role here. So if heavy advertisements

are carried out it will definitely increase purchase.

5. It is also to be noted that govt. should also take guard of health of the

consumer, so appropriate measures are to be taken.

6. Prices are to be reduced to increase sales, since the consumers are aware that

they are charged 10times more than the price of the drink.

7. If the quality is not improved than its better that superstar should stop

promoting unhealthy products.

62
63
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

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