1.1 INTRODUCTION TO THE TOPIC
A study on the behavior of consumers in regard to consumption of soft drinks and healthy drinks with is a project aimed at studying the Perception about Soft Drinks, their Consumption Pattern and behavior and to check for the Possibility of converting them to Soft Drinks
From the investigation it was found that the respondents above 30 years of age don’t have a great feeling towards sodas.. Strategies have to used to change respondents attitude towards soft drinks. Radio’s can also be used to create awareness about the products.
Many of the respondents have a preference for Pepsi. It is been found out that there is a growing market for health and wellness products. Differentiation of products has to be done so that people should able to differentiate the products of Pepsi from its competitors.
The company has to constantly keep innovating different products. The study has brought out various factors, which PepsiCo should concentrate upon to target the office channel. The factors to be taken care are health, price and availability of the product.
The reason for this paper is the investigation of elements answerable for brand inclination in the drink business, the expanding rivalry, all the more because of globalization, is persuading numerous organizations to base their techniques practically totally on building brands. Brand inclination intends to think about the diverse brands and settle on the most favoured brand. Brand preference means to compare the different brands and opt for the most preferred brand. This brand preference is influenced by various factors. This study compares the brand preferences between Coca Cola and Tropicana (Pepsi Co.)
According to this study many factors were find out for preferring a brand like:
o Brand persona
o Brand constancy
o Brand loftiness
o Brand value.
In the identification of factors affecting the brand preference, it was concluded that brand persona is the most effective factor that affects the brand preference. This brand persona deals with the personality aspects or the external attributes of brand, thus it can be said that consumer prefer any brand by looking at the external attributes of a brand.
The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages. But packaging and labelling are not as important for winning over consumers, according to findings published in the journal Food Quality and Preference, The study involved consumers at different stages of development and highlights the importance of adopting a sensory marketing approach.
The socio-economic environment of the consumer, determine the brand name and loyalty of the company. The brands which create the value for the customer through their attractive and innovative strategies are always capable of sustaining and improving their strong brand name and value with the consumers. Consumer’s choice, taste and preferences are based upon his satisfaction level on the amount of money, he spend on the purchase of the product. Hence, the companies are always striving to offer something unique and special, which their competitors cannot match easily. In order to implement these types of marketing strategies, the company’s needs to examine deeply the changing needs, preferences, tastes and desires of the consumers. In the fast growing economies of the world like India, the socioeconomic status of the consumers is rapidly improving. These considerable changes in lifestyle of the average consumers of India have led to diversify and expand the scope of business for the fast food and soft drinks. Hence, the shoppers are the best judges, who survey the quality and amount of the last item or brand being offered to them by distinctive business sector players. Hence, it propels us to know, to what degree the showcasing methodologies of PepsiCo, who is regarded as a real player in the field of sodas business, have affected the demeanour of the shopper. In this backdrop, the present study was carried out to assess the consumer behaviour towards the latest PepsiCo product ‘Nimbooz’ in Shimla city of the State of Himachal Pradesh.
The study of Consumer Behaviour is quite complex, because of many variables involved and their tendency to interact with & influence each other. Hence the study of consumer buying behaviour is a very intricate process, as it involves not only the economic factors but also the emotional factors. The study of consumer behaviour is very important to the marketers because it enables them to understand and predict buying behaviour of consumers in the marketplace; it is concerned not only with what consumers buy, but also with why they buy it, when and where and how they buy it, and how often they buy it, and also how they consume it & dispose it. Consumer research is the methodology used to study consumer behaviour; it takes place at every phase of the consumption process: before the purchase, during the purchase, and after the purchase. Research shows that two different buyers buying the same product may have done it for different reasons; paid different prices, used in different ways, have different emotional attachments towards the things and so on.
Hence, marketers need to study the consumer behavior, as it helps them to position their products better and develop effective marketing strategies. Consumer buying behavior is influenced by the culture and subculture. Habits, likes and dislikes of the people belonging to a particular culture or subculture which can affect the marketing efforts of a firm to a great extent. The social class to which an individual belongs tells about the type of products the individual prefers. Other factors that influence the buying behavior are social factors like reference group and family, personal factors like the age, life cycle and occupation, and psychological factors like motivation, perception and attitude of the customers.
Buying Habits and buying decision constitute consumer’s decision-making behavior. A customer can play various roles such as Buyer, Decider, Influencer, Initiator and Disposer etc, in purchasing and using the product. Through buying behavior the marketer/seller understands when, why, how, and where people do or do not buy a product. Consumer buying behavior in relation to decision making is broadly classified as Extensive problem solving buying, that is when a consumer buys high involvement, expensive, but less frequently purchased products like Cars, ornaments etc. Consumes practice Routine problem solving Decision-making Process when he purchases products which have routine utility value, but the cost is low such as detergents tooth -paste etc. Customers purchase low involvement products which is known as Variety seeking behaviour.
Usually, awareness is expressed in terms of knowledge someone has for something and when someone show preference for different attributes of a particular product or different brands of the same product.. Juice consumers in India are well aware about their preference set regarding the brands. People in India are aware of all brands of tetra packed fruit juices, but in chronological order they are more aware of Real juice which is most popular followed by Tropicana and other juices.
They are also able to explore and express their experiences with different brands in use at ease. This indicates their concern for and the understanding of the product in use. This is reflected from the consumers’ ranking of their preference for different brands and the ranking of experience and satisfaction with respect to the product as well as brand thereof is the sign of preference level.
Buying Behavior consists of mental, emotional and and Physical efforts put into a marketing setup to make a search for the best solution to the problems of unfulfilled demand by joining the resources one has and the offer available in the market. The data collected clearly depicts the consumer preference towards different brands of tetra packed juices. The surveyed data clearly indicated that the people in Pune city prefer Real Juice brand to other brands such as Tropicana, Frooti, Slice, Mazza and Appy etc.. Though Tropicana brand of juices is not far behind in brand preference The study of consumer behavior is a very complex process, as it involves not only the economic factors, but also the emotional factors. However, marketers need to study the consumer behavior, as it helps them for better positioning of their products and develop effective marketing strategies. Customer’s satisfaction through net value delivery is the key for any marketing success. Customer satisfaction through the dynamic support like value addition to consumers has been ignored until recent past. Based on preliminary investigation, it is found that not only the facts mentioned above are the root cause of marketing failures, but also the perceptual differences that exist between consumers and marketers are more subtle and latent cause of concern.
The present study has been undertaken to examine the Consumers’ Buying behavior and Brand Loyalty with regard to Tetra packed juices in Pune city. The study of the overall objective poses the clear picture regarding consumers’ awareness and buying behavior regarding Tetra packed juices of different brands. From the study it has been observed that tetras packed juice consumers prefer packed juice to actual juices because of its freshness, convenience and storing capacity. The consumers in Pune City are well aware regarding the use of their brands among the available alternatives. The success of any marketing strategy lies in the post- purchase experience associated with the products/ services. In today’s competitive juice marketing environment where customers have many alternatives to choose and satisfy themselves, customer’s loyalty is crucial for all competing firms. It is right to say that today’s delight of the consumers is their tomorrow’s loyalty to the brand. At the same time, this becomes the base for tomorrow’s expectation from the brand also. Expectation and actual delivery of consumer’s satisfaction are the basic elements of marketing strategy. It is said and felt that achieving and maintaining customer’s satisfaction even at a higher cost would not be as costlier as that of the cost of customer’s dissatisfaction and losing the customers to the rivals. Consumer satisfaction is highly focused area of management because the key to consumer retention is consumer satisfaction. A highly satisfied consumer generally stays loyal longer, buys more as the company introduces new products and upgrades existing products, talks favourably about the company and its products, pays less attention to competing brands and is less sensitive to price; offers product or service ideas to the company, and costs less to serve than the new one because transactions are routine.
1.2 LITERATURE REVIEW
Mrs. Pallavi Kumari*. (2012). The way Indian shoppers are using their cash on different things has changed as of late. With the regularly expanding entrance of web and online networking, the buying conduct of Indian buyers has changed incredibly. Urbanization is occurring in India at a tragic pace and is impacting the life style and purchasing conduct of the purchasers. The present study is dependent upon the recognitions, purchasing conduct and fulfillment of the buyers in Indian market. The Indian customers are noted for the high level of quality introduction. India is a lucrative market despite the fact that the for every capita wage in India is low and it remains an immense business, actually for exorbitant items. Buyer conduct is perplexing and all the time not acknowledged judicious. The later inclines which are found in the Indian business sector are famous person impact, internet shopping, freebies and prevalence of eco-accommodating items.
Consumer behavior is complex and very often not considered rational. A further challenge will be consumer personalities which differ across borders and also between and within regions. The vulnerable consumer, who does not always have access to the same number of choices as the average consumer, also needs to be taken into account. From the market perspective, people of India comprise different segments of consumers, based on class, status, and income. An important and recent development in India’s consumerism is the emergence of the rural market and market for eco-friendly products for several consumer goods. Three-fourths of India’s population lives in rural areas, and contribute one-third of the national income so it should not be avoided .India is a lucrative market even though the per capita income in India is low and it remains a huge market, even for costly products. The retailers should spend on online marketing during recession. They should also indulge in cost cutting, reach their customers, target markets, build long term relationships, available at all hours, low cost for inventory, and increase sales promotion schemes. Lastly, creating value along with delivering delight to the customer is what is most important. We live in a digital age and thus need to keep up with new trends in the social media. The Internet has become the first medium in history to allow for complex interaction between networks of people via Facebook and YouTube, amongst many more. In a constantly changing society where citizens are more proactive and have better access to information, and where new norms are created over time, many challenges evolve that we need to keep up with for understanding our citizens.
M. H. R. Bhuiyan,. , M. Shams-Ud-Din, , & M. N. Islam, (2012). The useful refreshment holds diverse supplement, for example, ascorbic harsh corrosive, tocopherol, beta-carotene and so on and offer profits of dietary phytochemicals. Utilization of useful sustenance might convey health and wellness to purchaser and it has no cytotoxicity and mutagenicity impacts The fundamental segments of soda pops are water, acidulants, flavorings, nourishment shades, additives, and other practical fixing. The utilization of common part make the beverages more satisfactory. There is variety in item agreeableness around customer as the taste sightlessness happens in 22.2 % ladies and 25.9 % men. What’s more there is additionally contrast in refreshment utilization between men and ladies. So the useful sustenance necessity to be advertised as advantageous, nutritious and delicious plans with particular health profits for the target populace. The examination was led in the lab of the Department of Food Technology and Rural Industries, Bangladesh Agricultural University, Bangladesh. The significant fixings were gathered from nearby market. Diverse chemicals and materials were utilized from the lab stock. The arrangement of useful drink was resolved dependent upon the taste inclination of men and ladies. Men demonstrated likings for sweetness and ladies indicated likings for sharpness. The expansion in TSS was straightforwardly while sharpness and vitamin C fixation change was conversely related with space period. The RFT space guaranteed greatest maintenance of substance and tangible lands contrasted with RMT space. Noteworthy space life of practical refreshments for men and ladies was 5 to 6 and 4 to 5 months, separately
.Dr. Simranjeet Kaur Sandhar. , Dheeraj Nim, , & 2 Shikha Agrawal, (2013). Soft Drinks were common preference among all the individuals before juices were being introduced. With the changing lifestyle and income levels, people are shifting their consumption patterns and have therefore become more health conscious thus leading to increase in demand of juices.The study focused on the preference and consumption pattern of soft drink and fruit juice
on the basis of different age group of people living in Indore city. The study starts with determining the major factors affecting the consumption pattern of soft drinks and fruit juices, and ends up with the conclusion as per the state of mind of the average rational human being. The study concludes that there exists a significant difference between the consumption pattern of the soft drinks and fruit juices in all age groups. The study also remarked the frequency of consuming fruit juices is more than that of soft drinks due to health consciousness of people.
With the increased importance of health and nutrition, changing life styles and
higher incomes, the Indian food market offers numerous opportunities for new products and product modifications. The purpose of this study was to develop a better understanding of consumption pattern of soft drinks and fruit juices of consumers at Indore city. Results from descriptive statistics for the survey indicated that 42% of the respondents prefer Soft Drinks and 58% of the respondents prefer fruit juices. Through the survey it was conveyed that weekly consumption of soft drinks is lower than the weekly consumption of fruit juices. The majority of the respondents consume soft drinks and fruit juices at the time of parties & celebrations. The basis of soft drinks consumption is its taste, price and an aid to put off thirst and for that of fruit juices is the health consciousness of consumers. An important finding that emerged out of the survey was that 61% of the respondents think that advertisements affect their purchases and 39% of the respondents think that advertisements do not affect their purchases. The study concludes that there exists a significant difference between the consumption pattern of the soft drinks and fruit juices in all age groups. The study also remarked the frequency of consuming fruit juices is more than that of soft drinks due to health consciousness of people.
Brajdeep Singh. (2012). This paper broadens examination interfacing commercial variables which effecting purchaser Preference starting with one item then onto the next item . circulated air through beverages organizations are using a ton of cash on their Advertisements, stars and so forth. In the ballpark of 35% of the aggregate expense is Advertising expense for a circulated air through beverage organization. Hence Advertising is a paramount part of the organizations to advertise their item, and produce deals. It is likewise critical for the organizations to know if their promotions are powerful or not, to check the effect of the ads, we have taken this as our exploration issue.
Publicizing is more than a device for offering sustenance and administrations. It has one overriding undertaking, to position a brand in the plan observation or perceptual space in connection to contenders, to made uniqueness and inclination.
To detail the issue experimentally, and to bring up the criticalness of undertaking this study, it is vital to present a concise survey of Researches undertaking here. Despite the fact that the audit included countless just a couple of studies which have an immediate and circuitous bearing in the present study have been evaluated.
As there is merciless rivalry in the soda business essentially between the two huge titans i.e. Coca Cola and Pepsi and both are striving quite hard for their piece of the overall industry. Accordingly it gets to be quite hard for the organizations to hold their clients. It is likewise obvious that 34 % of the sum fetches, these organizations use on Advertisements. Along these lines Advertisements are the spine for this Industry, they go about as a paste to hold their purchasers and focus on the outline. Likewise the buyer’s inclination and the demeanor change with the entry of the time and age, Mediums of Advertisements additionally assume a significant part in advertising the items around the masses.
Hema Gupta. , & Piyush Gupta,, (2008). Fruit drinks are popularly used in most urban households. Historically, the use of fruit juices began with consumption of orange juice, as a source of vitamin C to prevent scurvy. However, today markets are flooded with a large variety of juices e.g., mango, apple, guava, litchi, grape, pineapple, etc. The main reason for increased consumption is changing lifestyles and rising level of health consciousness among consumers and parents. They believe that these drinks provide superior nutrition because of their fortified status and high beverage cost. Child preference, easy availability, convenience, naturalness and marketing strategies have given fruit drink industry a booming growth.
Recent pesticide issue of soft drinks has further augmented sales of fruit drinks. Fruit drinks, if consumed in appropriate quantity, can be a part of balanced diet for children, and are
not always harmful. Studies have shown that vitamin C and flavonoids in juices have beneficial long term health effects like decreasing the risk of cancer and heart disease (13). Vitamin C by increasing iron absorption to almost double can reduce the incidence of anemia in population consuming diet with low iron content and bioavailability(14). However, the awareness and education of these details is lacking among general population.
Fruits are one of the 5 major food groups in food pyramid. American Academy of Pediatrics (AAP) recommends that those who require 1600 Kilocalories (1-4 years of age) require 2 fruit servings and those who require 2800 Kilocalories (10-18 years of age) require 4 fruit servings(1). In them 50% can be provided as fruit juice (not fruit drink) with each serving of 6 oz. No juices are recommended for infants less than 6 months of age.
The committee advocates and encourages use of fruits as compared to juices to meet the daily requirements and energy balance. However, fruit intake in diet is found to be low. In American children, only 80% of the RDA is met for fruits and that too 54% from fruit juices. The pattern of juice consumption in one study was as follows: mixed (39%), apple (30%), orange (23%), grape (7%), and pear (1%)(8). Corresponding data are not available for Indian children.
Rob Wallace. (2009). This research was conducted by face-to-face in-hall interviewing, whereby respondents were screened according to their consumption of fruit juice. Only those who were buyers of orange, apple, grapefruit or pineapple juice on a regular basis (at least once a month) were interviewed. No quotas were set on gender or social grade; however, it was ensured that interviews amongst a representative range of ages were obtained. Each interview lasted approximately 15 minutes. Fieldwork was conducted from 15th ‘ 20th March 2002, in three locations in the UK (North, Midlands and South East). A total of 318 interviews were achieved. Fully experienced interviewers carried out all interviewing and prior to the start of fieldwork all interviewers were briefed on the project objectives. In order to enhance the quantitative findings and to look in more detail at some of the issues surrounding consumer understanding of the terms used to describe fruit juice, a small-scale qualitative study was also undertaken. A total of 17 mini-depth interviews were conducted at the halls, amongst respondents who had already taken part in the quantitative research. These interviews were conducted in two locations in the Midlands and the South East.
A mix of respondents was interviewed for the qualitative research in terms of age, social grade and gender. Interviews lasted approximately 20 minutes, with a ??5 voucher being offered as a token of appreciation for taking part in the research. Specialist qualitative research executives conducted all interviews, with each interview being tape-recorded and analysed.
All those who took part in the quantitative research were shown photographs of the various types of fruit juice packaging, in order to prompt for understanding of the type of juice each contained. Examples of these show cards can be found in Appendix 2 at the end of this report.
It is important to point out that throughout this report, any mention of the labels of fruit juice packaging refers to the packaging as a whole. As most of the information regarding the type of fruit juice is given on the front of the packaging, this is what most respondents refer to when deciding which type purchase. It does not refer to the ingredients listing. Also it is important to note is that where charts do not always add up to 100% exactly, this is due to
the rounding up of figures This report sets out the findings of both the quantitative and qualitative research. Where the qualitative results are referred to, it is important to bear in mind that only 17 people were interviewed, therefore, these results will not be statistically valid, but can be used to add depth to the quantitative findings. Understanding of the terms ‘not from concentrate’ and ‘from concentrate’ was poor, with the term ‘concentrate’ in particular causing confusion amongst consumers. There was a general feeling that a juice either ‘from concentrate’ or ‘not from concentrate’ has water either added or taken away. Juice, ‘from concentrate’ is perceived to be of a cheaper quality, with the addition of additives and/or flavourings and sugars. The term ‘pure’ was seen to signify a juice that does not contain additives, however, when this term is used alongside ‘from concentrate’ it was interpreted to mean a lower quality juice. ‘Freshly squeezed’ juice was seen as juice that has been squeezed and immediately packaged. This type of juice was recognised as a ‘pure’ juice
with no additives and was seen as a good quality, premium product. Despite a poor understanding of the terms used to describe fruit juice, the majority of respondents said they found the information contained on the labels of fruit juice relatively easy to understand. It would seem that there was some recognition about the type of juice based on the image of the product, for example, its packaging, where it is placed in the supermarket and the price. In this sense, consumers who are used to buying fruit juice already have pre-conceived ideas about what they are buying and so the process by which the fruit juice is made is not a consideration when deciding which to purchase. Given that consumers felt they had a reasonable understanding of the type of fruit juice they buy, it is not surprising that many did not refer to the labelling information on a regular basis. Regardless of this, however, most felt that this information is important to have.
Michele Simon. (2012). Pepsi Co is really the biggest sustenance organization in the United States and second biggest on the planet. Pepsico’s confounding scope stretches out far past simply fizzy soft drinks. Shaped in 1965 through a merger of Pepsi-Cola with Frito-Lay, the organization’s marriage of salty snacks with soda pops has been key to the organization’s prosperity, and sets it separated from industry contender Coca-Cola, which still just claims refreshments. Over the previous decade, numerous inquiries have been raised about the part of the nourishment business in helping a showcasing environment in which bad refreshments and snacks have turned into the standard. While industry reactions have come in different structures, Pepsico emerges, anyhow as far as advertising. The organization prides itself on being a guide in corporate social obligation. The objective of this article is to investigate what the organization says its doing, what its really doing, and the broader setting for these activities. By any measure of great health, sugary drinks and salty snacks are not precisely “a piece of an equalized eating methodology,” at any rate not on a general foundation. Add to that expanding weights in schools and nearby neighborhoods to lessen or take out garbage sustenance showcasing to youngsters. What’s more it gets clear that an organization like Pepsico has a really genuine advertising test staring it in the face. Concerning cases of thinking about individuals’ health and offering “wholesome sustenances and beverages,”15 Pepsico has a tremendous test staring it in the face. The greater part of the corporate benefits originate from offering the precise items that Americans requirement to be consuming less of: nutritiously lacking sugar-stacked sodas and salty, greasy snacks. Yet Pepsico has understood that by making a continuum of “fitness” in which the whole universe is characterized by the organization’s own particular items, this advertising issue could be succeeded. Pepsico obviously has no premium in anything the legislature need to say in regards to how to manage showcasing to youngsters.
Pepsi Co has everything resolved. Without a doubt, the organization’s site holds a show of “arrangements” with respect to showcasing to kids. In the same article, Nooyi recognized that she may have invested an unbalanced measure of time discussing healthier items, however that “Pepsico need to fulfill commentators about health concerns.”73 at the end of the day, Nooyi has a clash staring her in the face. She need to keep both moguls and pundits joyful. The best way to perform both is by boosting the organization’s center brands, while endeavoring to make things look great through sharp advertising. What this deciphers to is little change that will really profit open health. That is the reason we have an arrangement of laws and regulations intended to ensure general society from corporate overextend. Lamentably, in the present hostile to administrative atmosphere, that framework is under ambush and always being dissolved.
Laura Mayes. (2011). This paper explores social media marketing, its functions and best practices. By examining uses and gratifications theory and the ‘groundswell,’ this paper analyses how to best use social media. Two case studies of beverage giant Coca-Cola are examined and analyzed.
This paper explores the concept of social media and its users with a case study of Coca-Cola’s web presence. Two of the most recent social media campaigns,
Expedition 206 and 24-Hour Session with Maroon 5 will be examined. Questions that will be answered throughout the paper will identify the effects social media has, if companies can reach their audiences effectively through social media, and what will make social media better by research on best practices. Social media marketing helps a company form a relationship and connect with their audience. Tools such as Twitter, Facebook, various blog sites and Foursquare are used to fuse a connection. It is then up to the company to ensure that a relationship develops. Social media is widespread and it is imperative to remain ahead of the competition. Coca-Cola’s competitors, Pepsi Co., Nestl?? and Dr. Pepper Snapple Group all have a presence on social media sites and engage in social media marketing. This paper explores the concept of social media and its users with a case study of Coca-Cola’s web presence. Two of the most recent social media campaigns, Expedition 206 and 24-Hour Session with Maroon 5 will be examined. Questions that will be answered throughout the paper will identify the effects social media has, if companies can reach their audiences effectively through social media, and what will make social media better by research on best practices.
Social media marketing helps a company form a relationship and connect with their audience. Tools such as Twitter, Facebook, various blog sites and Foursquare are used to fuse a connection. It is then up to the company to ensure that a relationship develops. Social media is widespread and it is imperative to remain ahead of the competition. Coca-Cola’s competitors, Pepsi Co., Nestl?? and Dr. Pepper Snapple Group all have a presence on social media sites and engage in social media marketing. Coca-Cola’s social media presence and engagement with consumers can serve as a model for large organizations to follow. This paper explored social media marketing and featured case studies from Coca-Cola. The uses and gratifications theory was observed, as well as the theory of the groundswell. Best practices for communicating on social media as well as strategies for successful viral marketing campaigns were also examined. These theories and strategies were then analyzed by looking at Coca-Cola’s social media presence and involvement with two recent social media marketing campaigns.
Future research that can be conducted could be a detailed description of Coca- Cola’s presence on a daily basis, and not just large campaigns. Only one day is analyzed in this paper, but more would be beneficial. This research could help predict trends like when the most users are active on social media and if that is the best time to reach them, when users have the most complaints or issues regarding a product and if the company is responding more one month than the other.
Eva-Lena Andersson. , Evelina Arvidsson, , & Cecilie Lindstr??m, (2006). Today, advertising is a multi-billion industry, employing hundreds of thousands of people and affecting billions of people’s lives worldwide. Yet, seeing as advertising clutter has increased tremendously and is more intense than ever, it is vital that companies differentiate themselves from competitors by creating even more powerful, entertaining and innovative advertisement messages, as well as sponsoring different events. Examples of such companies that spend billion of dollars on marketing strategies in order to stay key players in their industry are The Coca-Cola Company and PepsiCo. The overall purpose of this paper is to gain a deeper understanding of different international and local factors affecting consumer preferences on a local market.
A quantitative method was applied, and thus a questionnaire with 150 respondents on the local market was conducted. The respondents were divided into three different age groups: ‘ 18, 19-34, and ‘ 35, and represent a diverse set of people who are at different stages in their lives.
International advertising and international sponsorship respectively influence the local target group in different ways, but they also affect international brand in that they have an impact on brand image and brand equity. Moreover, depending on a person’s age, consumers view brands differently, and thus have an effect on international brand alone, but also in combination with international advertisement and international sponsorship. Together, these factors influence the way in which a brand is perceived, and consequently influence consumer preferences.
From this study, it can be concluded that in order for international companies to be successful and gain competitive advantage on the local market, it is vital that they implement a combination of the studied factors in their marketing strategy so to best reach target groups. More specifically, the strategies should be tailored in accordance to the target groups’ age, seeing as consumer preferences vary depending on a person’s age. Lastly, although advertising campaigns are still efficient in reminding and persuading consumers of brands and products, companies must differentiate themselves in their messages and techniques, etc. as advertisement clutter is at a rise.
Abdul Munam Jamil Paracha,. , Muhammad Waqas,, , Ali Raza Khan, , & Sohaib Ahmad, (2012). This study is conducted between two global giants Coca Cola & Pepsi cola. This research paper is basically a comparative study of two well-known competitors in beverage industry of Pakistan which are Pepsi Cola & Coca Cola. The primary purpose of this paper is to find out which company is leading the market. This research required us to conduct the consumer research on why they chose the drink. To find out the factors & reasons that influence to choose their preferred drink. A total of 400 samples were selected from different population. The samples should be such that the consumer of cola drinks. We also tried to get an adequate ratio of men & women in the samples. The main demographic targeted were the younger age group as they are more conscious & aware about the brand. Also we tried to focus more on students & young professionals as they would be more interested in trying out new products & were more conscious. Buyers who have been consuming cola drinks were better able to answer the questions regarding the influencing factors & the reasons for their consumption & purchase. Simple random sampling was use in this study. coca cola out of 400 & 149 prefer Pepsi cola. One of the reasons is that people like Coca cola as it taste is very good. Another reason is that Coke also acts as refreshment to our sample which influence on them to preferred coke. Price is also very important factor that influence to choose their preferred brand. Frequency of advertisement is also important factor for coke customer to choose their brand. It will be also notice in our study that promotion scheme & discount are also important to purchase their preferred brand. Mostly people come to know about their preferred brand through advertisement on TV so people who watch TV are more aware of their preferred cola as compare to other medium of advertisement. Availability of convince is also important factor to choose the proffered brand. The customers of Coca Cola give importance to the brand ambassador while Pepsi-cola customers have no influence on brand ambassador. Coca cola customer are think that it is not only used to fill their basic thirst but also for other purposes while Pepsi cola customer think that there preferred cola is important because it fill their basic thirst. Both brand customer think that manufacture & expire date is very important so that they proffered there cola according to their perspective. Thus Pepsi have to work more to compete with Coke & to lead the market.
1.3 INTRODUCTION TO THE INDUSTRY
In India, beverages form an important part of the lives of people. It is an industry, in which the players constantly innovate, in order to come up with better products to gain more consumers and satisfy the existing consumers.
The beverage industry is vast and there various ways of segmenting it, so as to cater the right product to the right person. The different ways of segmenting it are as follows:
o Alcoholic, non-alcoholic and sports beverages
o Natural and Synthetic beverages
o In-home consumption and out of home on premises consumption.
o Age wise segmentation i.e. beverages for kids, for adults and for senior citizen
o Segmentation based on the amount of consumption i.e. high levels of consumption and low levels of consumption
In a duopoly like circumstance, the extent that cola industry in India is concerned, it could be said that it is absurd to cut costs unless, one of the two gatherings has a much lower expense base. However that is not the situation in India. Indeed, both the organizations, Coke and Pepsi, put vigorously in promoting and in appropriation through their establishment and in addition their frameworks. Nonetheless, an incredible arrangement of consideration is paid by both organizations to cost, especially in the improvement of a hard successful inventory network framework in which economies are crushed out and, wherever conceivable both overheads and working capital are regulated. Subsequently, it is to a great degree challenging to for both the gatherings to play with the costs. Rather, it is counter-profitable activity, as when costs are lessened in a specific territory by one of the cola marks, the second must take after. When we investigate the history of estimating of these two specific players of the carbonated beverages industry, we will see that the first significant activity in the value front occurred a few years back when the brand Coca-Cola returned to India. By then of time colas were accessible just in 200 ml jugs. Coca-Cola, in its comeback trail, broke the convention by starting Cola in the 300 ml size containers however at the same cost as Pepsi, which was then in a 200 ml container. With this method, Coke anticipated that will increase advantage in the business sector particularly in India, which is customarily a remarkably value touchy business sector. Then again, Pepsi, as being a wild contender was readied for it and soon started its colas in the 300 ml sizes. In this way, in India, it was the 300ml flask which turned into the standard in most parts of the nation, making the value an equality issue between the two brands. At that point, a couple of years back, one litre and 1.5 litre non-returnable PET containers at a rebate in correlation to, a 300 ml returnable glass jug, the customary bundling in this item class, was started by Pepsi. It was a great move bringing about critical build in the utilization level particularly around the reliable purchasers in the urban zones. What’s more some piece of the guideline of the amusement, Coke emulated Pepsi in the above move with a specific end goal to decrease the expense for every glass to the customer. At that point came the times of a 500 ml non-returnable PET flask which was publicized practically completely on the expense of the purchaser for every 100 ml of cola! In any case, the incredible point of interest that the PET jugs gave is that they have expanded home utilization level which was not of much centrality contrasted with out of home utilization work then. Also in exceptionally later times the Coke did a U-turn that is value cuts. The most recent move of diminishing cost to the purchaser is the exact inverse of what has been occurring to-date. It has now re-started a 200 ml jug at an unit cost of give or take 2/3rd of the 300 ml value, accordingly making retail buy look shabbier. This system was intended to battle utilization example of more modest towns and rustic zones where two individuals impart a 300 ml container. Essentially, by making the flask more diminutive it has just lessened unit cost without influencing the exchange edge. It has been accounted for that Pepsi has been cutting the cost of its 300 ml jug in a few spots, until a stock of 200 ml jugs was assembled, as a reply to the Coke’s strike. In any case, this demonstration of Pepsi may boomerang as there is an in number likelihood of having some negative impact on the store network and other stock cost in the long run.
The Indian beverage market offers hot options. So Dabur, the pioneer and one of the market leaders in the packaged fruit juices market, has recently launched a new drink which is called ‘Real Burrst’. This drink is a light fruit beverage with 4 flavors’ Mixed Fruit, Crispy Apple, Orange Bytez, & Mango Mania.
Real Burrst is targeted towards consumers in the Indian cities, Dabur says, and comes in a tetra pack highlighting the ‘Lite and Refreshing’ qualities of fruits. All 4 variants will be made available in 1 liter and 200 ml packs priced at Rs. 65 and Rs. 15, respectively, and would be made available everywhere in India.
According to Dabur, the fruit beverages industry in India now stands at Rs 1100 crores (approx. Euro 180 million) and the market has grown at the rate of 30% where Dabur India, through the new launch Real Burrst, is looking at establishing a market share of 4-5% in next 2-3 years.The 30%-growth rate is well-known figure also from other FMCG-sectors in India. The FMCG industry is set to grow 20-30% in 2009-10, up from 10-20% in 2008-09, as was reported recently by media quoting consultants for the Indian market.
The FMCG sector has grown consistently during the last three to four years, reaching a size of US$ 25 billion (Rs. 120,000 crore) at the retail level in 2008, FICCI, the industry body, has recently said when lobbying for a Goods & Services Tax which should replace the multiple indirect taxes currently levied on FMCG products. According to the market figures from FICCI, the industry is poised to grow at 10-12% for the next 10 years to reach US$ 43 billion (Rs. 206,000 crore) by 2013 and US$ 74 billion (Rs. 355,000 crore) by 2018.
Part of the industry of fast moving consumer goods is also the beverage industry. The total beverage industry in India is being estimated to grow at 17% this year, according to experts. ‘Food and beverages segment has not suffered despite the slowdown in the economy. FMCG in our stores has done very well. In fact, we registered 10-15% growth in this segment last year,’ said a spokesperson at Spencer’s Retail Ltd.
Beverage majors like Coca Cola India, for example, again reported growing sales, this time for the eleventh consecutive quarter. Coca-Cola in India reported a solid first quarter 2009 results not only despite a challenging economic environment, but also with unit case volume increasing by 31%, as was told by a Coca Cola India spokesperson to media. And eight quarters out of the 11 quarters had a double-digit growth. To remote onlookers of the business sector, these figures may sound amazing, as Western markets are immersed and have not seen such figures for long time. In any case in India, different positive variables drive the refreshment markets. One is the climbing number of individuals in the working class with additional cash to use on new refreshments like wine, new brands of transported in whiskey, or the extravagant caffeinated beverages, some of which are decent to empower individuals to work longer, to listen longer throughout meetings, and even to gathering longer and have a ton of fun. Guide in this section is Red Bull, yet some other great and extremely compelling beverages ‘ one even exceptionally sound – are as of now or soon entering the business sector
An alternate variable is the sheer size of the amount of individuals in India. Indeed the country families, as long as the storm is great, get acquiring power and can take an interest in purchaser markets. Where ever the obtaining force is still not enormous enough, organizations offer more diminutive packs for Rs. 10 or Rs. 5, particularly to be seen in the nibble market. Hot summers in India additionally help a spot to offer refreshments, however that phenomena we know likewise from Texas or Italy
1.4 INTRODUCTION TO THE COMPANY OF COCA COLA AND TROPICANA (PESPSI CO.)
ABOUT COCA COLA
The Coca-Cola Company (Coca-Cola), the world’s leading soft drink maker, operates in more than 200 countries and sells 400 brands of nonalcoholic beverages. Coca-Cola is also the most valuable brand in the world. Coca-Cola is a globally recognized successful company. The Coca-Cola was founded in May of 1886 and continues for more than a century through the times of war and peace, prosperity and depression and economic boom and bust. As late as the 1990s, Coca-Cola was one of the most respected companies in the world, building and known as a very successful management team. Since 1998, the company has been struggling with internal weaknesses and external threats.
Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain wholesalers. The Company’s beverage products comprises of bottled and canned soft drinks as well as concentrates, syrups and not-ready-to-drink powder products. In addition to this, it also produces and markets sports drinks, tea and coffee. The Coca-Cola Company began building its global network in the 1920s. Now operating in more than 200 countries and producing nearly 400 brands, the Coca-Cola system has successfully applied a simple formula on a global scale: Provide a moment of refreshment for a small amount of money-a billion times a day.
The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. More than anything, that system is dedicated to people working long and hard to sell the products manufactured by the Company.This unique worldwide system has made The Coca-Cola Company the world’s premier soft-drink enterprise. From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than anyother consumer product, has brought pleasure to thirsty consumers around the globe. For morethan 115 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day.The Company aims at increasing shareowner value over time. It accomplishes this by workingwith its business partners to deliver satisfaction and value to consumers through a worldwide system of superior brands and services, thus increasing brand equity on a global basis. They aim at managing their business well with people who are strongly committed to the Company value sand culture and providing an appropriately controlled environment, to meet business goals and objectives. The associates of this Company jointly take responsibility to ensure compliance with the framework of policies and protect the Company’s assets and resources whilst limiting business risks
The soda pop market everywhere throughout the world has been seeing a neck to neck fight between the two real players, Coca-Cola and Pepsi since the exact starting. The thirst quenchers are making a decent attempt to have the real lump of the pie of carbonated soda pop market. Both the players are using their energies in building limit, framework, and limited time exercises and so on. Coca-Cola being 11 years more senior than Pepsi has ruled the scene in a large portion of the soda pop markets on the planet and getting a charge out of authority regarding piece of the overall industry. At the same time the Coca-Cola individuals are thinking that it hard to keep away Pepsi, which has been narrowing the holes normally. The two are posturing dangers to one another in every hideout and corner of the world. While Coca-Cola has been winning a large portion of its bread and margarine through drink deals, Pepsi has a multi items portfolio with some bit from the same business. The two warriors are eye to eye at the end of the day here in India with diverse systems and strategies to assault the opponent. Coca-cola is focusing upon the joint wanders with the existing bottler establishment claimed packaging operations to improve its control on assembling and promoting of its items extend and achieve the quality norms of its class. Countering it Pepsi has taken the fight in its grasp by coasting as venture of $ 95billion to set Pepsi Company. India possessions, as subsidiary for organization possessed packaging operations. Both the organizations are emulating diverse way to achieve the same predetermination to get the greater bit of circulated air through soda pop market. Both think about India as a gigantic potential business, according to capita utilization here is a simple 3 serving every twelve-months against the world normal of 80. Along these lines, they are putting in their earnest attempts to charm the Indian buyer who need to work for 1.5 hours to purchase a jug of soda pop. In correlation to the worldwide standards minutes, amajor obstacle to traverse for both the competitors for getting no.1 position examination to the inter.coca-cola is decently situated with its 53 packaging locales through out the nation providing for it an edge overcompetition by preparing a well-assembled containing and circulation set. On theother hand, Pepsi, with two more years in India, has had the ability to set a picture of a champ in India and has had the capacity to get the beat of the India soda market. The soda pop titans are leaving on stone unturned and her for the long terms.
Coca-cola has been infiltrating the business sector through its wide item run with a determination to change utilization example of soda pop in India. Firstly, they overhauled the entire business by presentation 300 ml flasks, which thusly had given the industry a blasting development of 20% as contrasted with the prior 5%. They need to create a coca society here and are taking a shot at a system to offer soda pop in every conceivable bundle. In coca-cola camp, the thought of rivalry has not hailed from Pepsi, however from alternate refreshments, for example, tea, espresso, Nimbu-Pani, water and so on. Pepsi is truly combative in its approach to Indian shopper. They are urgently dealing with the procedure to be champs in the hot cola war between two enormous aristocrats. As per Pepsi rationality, its the franticness that urges official to think, to call upon those innovative plans to thump the bubble out their rivalry. Pepsi had plumbed an extensive on the perceivability of its blue red and white logo. They have been running with forceful promoting by putting Amir Khan, Gautam Gambhir, Genelia D’souza in their promotion to underwrite their brand, the good examples for its focused on buyer the teens. They have expanded the bubble in the commercial center by presenting the allocators called wellspring Pepsi and have been getting a charge out of a lead over its opponent there. The most recent correspondence showcases Aamir Khanas a storyteller, watching diverse circumstances in the lives of the individuals. Taking the group of onlookers through diverse minutes of life Aamir watches that however the things are different now yet the upbeat minutes are still praised together and not in detachment. The whole correspondence is a troupe of a lot of people such episodes in our lives. The correspondence closes with Aamir saying “Aap Muskuraingey, Bul Bule Gungunayaingey”- Open Happiness” (You grin, so do the Bubbles in a jug of Coca-Cola)
HISTORY OF COCA COLA
Coca-Cola?? originated as a soda fountain beverage in 1886 selling for five cents a glass.Early growth was impressive, but it was only when a strong bottling system developed thatCoca-Cola became the world-famous brand it is today.
1894 ‘ A modest start for a Bold Idea
In a candy store in Vicksburg, Mississippi, brisk sales of thenew fountain beverage called Coca-Cola impressed thestore’s owner, Joseph A. Biedenharn. He began bottlingCoca-Cola to sell, using a common glass bottle called aHutchinson.Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candlerthanked him but took no action. One of his nephews already had urged that Coca-Cola bebottled, but Candler focused on fountain sales.
1899– The first bottling agreement
Two young attorneys from Chattanooga, Tennessee believed they could build a business aroundbottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and JosephB. Whitehead obtained exclusive rights to bottle Coca-Cola across most of theUnited States (specifically excluding Vicksburg) — for the sum of one dollar. Athird Chattanooga lawyer, John T. Lupton, soon joined their venture.
1900-1909– Rapid growth
The three pioneer bottlers divided the country into territories and sold bottlingrights to local entrepreneurs. Their efforts were boosted by major progress inbottling technology, which improved efficiency and product quality. By 1909, nearly 400 Coca-Cola bottling plants were operating, most of them family-owned businesses. Some were openonly during hot-weather months when demand was high.
1916– Birth of the contour bottle
Bottlers worried that the straight-sided bottle for Coca-Cola was easily confused with imitators.A group representing the Company and bottlers asked glass manufacturers to offer ideas for adistinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana wonenthusiastic approval in 1915 and was introduced in 1916. The contour bottle became one of thefew packages ever granted trademark status by the U.S. Patent Office. Today, it’s one of the mostrecognized icons in the world – even in the dark!
1920s– Bottling overtakes fountain sales
As the 1920s dawned, more than 1,000 Coca-Cola bottlers wereoperating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a hugehit after their 1923 introduction. A few years later, open-top metal coolers became theforerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Colaexceeded fountain sales.
1920s and 30s– International expansion
Led by longtime Company leader Robert W. Woodruff, chief executiveofficer and chairman of the Board, the Company began a major push toestablish bottling operations outside the U.S. Plants were opened inFrance, Guatemala, Honduras, Mexico, Belgium, Italy, Peru, Spain, Australia and South Africa.By the time World War II began, Coca-Cola was being bottled in 44 countries.
1940s– Post-war growth
During the war, 64 bottling plants were set up around the world to supply the troops. Thisfollowed an urgent request for bottling equipment and materials from General Eisenhower’s basein North Africa. Many of these war-time plants were later converted to civilian use, permanentlyenlarging the bottling system and accelerating the growth of the Company’s worldwide business.
1950s– Packaging innovations
For the first time, consumers had choices of Coca-Cola package size and type — the traditional6.5-ounce contour bottle, or larger servings including 10-, 12- and 26-ounce versions. Cans werealso introduced, becoming generally available in 1960.
1960s– New brands introduced
Following Fanta?? in the 1950s, Sprite??, Minute Maid??, Fresca?? and TaB?? joined brand Coca-Cola in the 1960s. Mr. Pibb?? and Mello Yello?? were added in the 1970s. The 1980s broughtdiet Coke?? and Cherry Coke??, followed by POWERADE?? and DASANI?? in the 1990s.Today hundreds of other brands are offered to meet consumer preferences in local marketsaround the world.
1970s and 80s– Consolidation to serve customers
As technology led to a global economy, the retailers who sold Coca-Cola merged and evolvedinto international mega-chains. Such customers required a new approach. In response, manysmall and medium-size bottlers consolidated to better serve giant international customers. TheCompany encouraged and invested in a number of bottler consolidations to assure that its largestbottling partners would have capacity to lead the system in working with global retailers.
1990s– New and growing markets
Political and economic changes opened vast markets that were closed or underdeveloped fordecades. After the fall of the Berlin Wall, the Company invested heavily to build plants inEastern Europe. And as the century closed, more than $1.5 billion was committed to new bottlingfacilities in Africa.
21st Century– & Still Going Strong
The Coca-Cola bottling system grew up with roots deeply planted in local communities. Thisheritage serves the Company well today as people seek brands that honor local identity and thedistinctiveness of local markets. As was true a century ago, strong locally based relationshipsbetween Coca-Cola bottlers, customers and communities are the foundation on which the entirebusiness grows
COCA COLA GLOBALIZATION STRATEGIES
The coca-cola organization is worldwide player and roughly 70 % of its volume and 80 % of its benefit originated from outside the United States of America. Despite the fact that it was discerned as astandardized brand over the world, coca-cola had been quietly fine turning its internationalmarketing methodologies to suit the necessities of singular national markets. Just the brand coca-cola, Sprite and Fanta were showcased comprehensively. In Latin America and Europe, where substantial customer’s
favored existed for lemon lime and orange soda.coke had created an extensive variety of definitions and essences to cater the necessities of distinctive nations.
THE FUTURE OF COCA COLA
While doing business overseas offers coke wonderful growth opportunities it also has itsown disadvantages. The economic slowdown in various overseas markets and the strong dollarhad their impact on coca-cola revenues and bottom line in 1998. But the company is optimisticabout the future.M Douglas Investor, the Chief Executive Officer of the Coca-Cola Company says, ‘This past year 2006 has been a challenging period for the Coca-Cola Company as economicenvironment became more uncertain in the later part of 2006, and we strongly believe that our fundamental opportunities for long term growth have not changed’.As long as maximization of share-holder wealth remain Coke’s focus for its future isassured Goizueta had stated and proven to the world that focus on shareholder wealth does moregood to the company than focus on revenues and it is not that coke does not enjoy volumes for itis world’s No.1 soft drink manufacture. It is not content with this title and is aiming at highervolumes year after year. Surely coke will continue to grow. Point on Roberto had reduced thecompany basically to its trademark and the returns are so astronomical as to be off the boards. It just absolutely added a jet engine to their performance
ABOUT TROPICANA (PEPSI CO.)
PepsiCo Inc. is an American multinational food and beverage corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001’which added the Gatorade brand to its portfolio.
As of January 22, 2012 PepsiCo’s product lines generated retail sales of more than $1 billion each, and the company’s products were distributed across more than 200 countries, resulting in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second largest food & beverage business in the world. Within North America, PepsiCo is ranked (by net revenue) as the largest food and beverage business.
Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006, and the company employed approximately 297,000 people worldwide as of 2011. The company’s beverage distribution and bottling is conducted by PepsiCo as well as by licensed bottlers in certain regions. PepsiCo is aSIC 2080 (beverage) company.
With the re-entry of Coca-Cola in the Indian market, Pepsi-Cola had to goin for more aggressive marketing to sustain its market share.
HISTORY OF TROPICANA (PEPSI.CO)
‘1977: Parle launched Thums-up and pure drinks launched Coca-Cola.
‘1998: In September, final approval for the Pepsi Foods Ltd. Project granted by the’Cabinet Committee’ on economic affairs of the’Rajeev Gandhi Govt.’
‘1990: In March,’Pepsi-Cola and 7-up’ launched markets in north India.
‘1990: In May, The government cleared the Pepsi-Cola project again but with a changein brand name to’Lehar Pepsi’,simultaneously it rejects the Coca-Cola application’Citra’ from the Parle, stable hited the market.
‘1991: Pepsi-Cola extended its soft drinks business and reached at national scale. Pepsi-Cola launched its product in Delhi and Bombay.
‘1992: In January, Brito foods application is cleared by the FIPB. Pepsi-Cola and Parlestart initial negotiation for a strategic alliance but took break off after a while.
‘1993: Pepsi-Cola launched’Slice and Teem’ captured about 25-30% of the soft drink market in about 2 years.
‘1994: Pepsi bought ‘Dukes & Sones’.
‘1995: Pepsi-Cola lunched cans, having capacity of 330ml in various flavors
‘1996: Pepsi-Cola domestic and international operations combined into a Pepsi-Cola Company. International and domestic operations combined into onebusiness unit called ‘Frito-lay Company’.
1997: Pepsi-Cola brought ‘Mirinda Orange’ opposite to’Fanta’.
‘1998: Pepsi-Cola launched ‘Mirinda Lemon’ opposite to ‘Limca’.
‘1999: Pepsi-Cola launched ‘Diet Pepsi’ in can and 1.5 Lit.’PET’ bottle for healthconscious people.
‘2001: Pepsi-Cola launched Slice in ‘Tetra’ Pack.
‘2003: Pepsi-Cola launched ‘Pepsi Blue’ to get the favour of world cup season.
‘2005: Pepsi-Cola launched Mirinda in ‘Straw Berry’ flavour to get the favour of movieBatman.
‘2005: Pepsi-Cola launched 7-up as ‘7-up ice’. Pepsi-Cola launched ‘Mountain Dew’ to be more competitive with Coca-Cola
‘2009: Bangalore, March 9 PepsiCo India has launched itspackaged
nimbu paani ‘Nimbooz by 7Up.
PRODUCTS AND BRANDS
PepsiCo’s product mix as of 2012 (based on worldwide net revenue) consists of 63 percent foods, and 37 percent beverages. On a worldwide basis, the company’s current products lines include several hundred brands that in 2009 were estimated to have generated approximately $108 billion in cumulative annual retail sales.
The primary identifier of a food and beverage industry main brand is annual sales over $1 billion. As of 2009, 21 PepsiCo brands met that mark: Pepsi, Mountain Dew, Lay’s, Gatorade, Tropicana,7Up, Doritos, LiptonTeas, QuakerFoods, Cheetos, Mirinda, Ruffles, Aquafina, Pepsi Max,Tostitos, Sierra Mist, Fritos, and Walkers Global beverages and snacks major PepsiCotoday expanded its Tropicana range in India with the launch of three variants of Tropicana juices in powdered form.
Leveraging its global fruit expertise, the company has launched ‘Tropicana Fruit Powders’ in three variants–orange, lemon and mixed fruit in some select markets across the country.
“Initially, we have launched the new range in Chennai and Bangalore in South India and Mumbai and Pune in Maharashtra,” PepsiCo India Senior Director-Marketing (Colas, Juices & Hydration), Homi Battiwalla told PTI. He added that the new product range would be launched across the country in phases.
“With this new and innovative launch of Tropicana Fruit Powders, we are looking at expanding and diversifying our portfolio with offerings that fulfil the need gaps for Indian consumers, on the basis their local tastes and preferences,” Battiwalla said.
He added that the with the new launch the company hopes to increase accessibility and recruit more consumers into the packaged juice, juice-beverages category which will help it to expand the franchise of Tropicana in India. Battiwalla said Tropicana Fruit Powders contain real fruit juice with no added preservatives, artificial colours or artificial flavours. PepsiCo entered India in 1989 and has grown to become one of the largest food and beverage businesses in the country. The company has 38 beverage bottling plants and three food plants in India. It’s portfolio consists of various brands including Pepsi, Lay’s, Kurkure, Tropicana, Gatorade and Quaker
BRAND HISTORY OF TROPICANA
Tropicana was founded in Bradenton, Florida, USA, in 1947. It is now enjoyed almost everywhere in the world. Carefully nurtured for over 50 years, Tropicana has matured into one of the most respected beverage brands. Tropicana is the #1 brand in packaged 100% Juice* in the world in 2011 in off-trade volume. It is today available in 63 countries. Since 1998, Tropicana has been owned by PepsiCo, Inc. Tropicana Premium Gold was re-launched as TROPICANA 100% in 2008.
Tropicana continues to select the best fruit to manufacture high-quality juices and original products, pioneer innovative processes and explore new markets for its products. It is committed to fostering healthy lifestyles by ensuring that its products are naturally nutritious and provide the daily benefits that one needs.
In India, Tropicana comes in two categories: 100% Juices (sold as Tropicana 100%) and Juice Beverages (sold as Tropicana).
QUICK BRAND FACTS
Launched in India in 2004.
Available in two categories – 100 percent juice and juice-based drinks.
Sharpening its focus on making healthy breakfast options widely available for consumers, Food and Beverages major PepsiCo has launched a new campaign for its fruit juice brand Tropicana. This comes on the heels of the successful ‘100% Juice’ campaign that PepsiCo launched in late 2008. The new campaign focuses on Tropicana 100% fruit juice as an integral part of a complete breakfast.
Commenting on the new campaign, Homi Battiwalla, Director, Juice and Juice Drinks, PepsiCo India said, ‘Tropicana has been very successful with a slew of initiatives behind its 100% range of juices, which included the launch of the new Mixed Fruit Juicelast year. These have been pivotal in making Tropicana 100% India’s largest selling 100% Juice brand. The new Tropicana 100% Juice communication, aims to unlock the Juice category in India, by positioning it as a critical constituent of the Breakfast Menu. With the growing lifestyle trend of “Rushed Breakfast”, nutrition often tends to get compromised. The new Campaign, introduces the powerful functional benefit of 9 Natural Fruit Nutrients that is present in every 200ml serve of Tropicana 100% juice.
The new 2010 TVC takes a page out of the daily life of a typical urban household, showing a young couple rushing through breakfast, only to find food on the plate shrinking dramatically. This baffles the man but his smile returns when his wife restores parity by adding a glassful of Tropicana 100% juice to the breakfast. The TVC will be complimented by a powerful Print led surround campaign that aims to educate consumers about the effect of cutting short breakfast & how Tropicana with its 9 Fruit nutrients can add back nutrition to one’s breakfast.
Commenting on the campaign, Hari Krishnan, Vice President, JWT said, ‘Tropicana as a brand is all about nutrition. The new campaign “Let’s MakeBreakfast 100%” reinforces the wonders of a warm, nutritious, fulfilling breakfast and highlights the importance of a complete nutritious meal. This serious everyday life issue is tackled in an entertaining and engaging manner that will surely be appreciated by the consumer.
The campaign will also be associated with a host of innovative channel centric activities aimed at reinforcing the ‘Tropicana ‘ Complete breakfast’ association. Notable among them being some customized Modern trade initiatives. In addition, the brand has revamped its Back of Pack Graphics to highlight the Nutritional benefit that Tropicana 100% Juices bring to one’s Rushed Breakfast.
The Juice Category is growing at a healthy pace, and gathering momentum across the country. The North is the largest contributor to this category & Tropicana generates significant part of its business from the core markets of Delhi, Punjab & Maharashtra. Tropicana 100% is the market leader in the 100% Juice category.
Tropicana 100% Juices are available in 200ml & 1L packs priced at Rs. 22/- & 85/- respectively in Orange, Apple, Mixed Fruit & Grape flavours.
Looking to corner the market on America’s breakfast beverage, Tropicana Products wants to reduce the competition to a pulp — one juice glass at a time. A subsidiary of soda-and-snack behemoth PepsiCo, Tropicana, the best-selling orange juice in the US, makes orange juice at a facility in Bradenton, Florida, and sells it in the US and Canada through its PepsiCo Americas Beverages unit. Tropicana offers a variety of its flagship juices, including reduced-sugar, reduced-calorie, and calcium-fortified versions. Tropicana Pure, which is sold in the supermarket’s produce section, is the company’s premium juice line. Tropicana also makes Pepsi’s Naked Juice and juice for the Dole company under license.
Fruit juices are perceived as anytime beverages, with consumption being spread more or less evenly between the mid-mornings, afternoons and evenings. Moreover, Generation Now is as much inclined to sipping fruit juices as colas, with teenagers driving the maximum trials.
Among packaged fruit beverages, the `awareness to trial’ ratio of PepsiCo’s Tropicana juice brand has been rated the highest. Up to 17 per cent of the respondents were aware of Tropicana, while the brand’s trial stood at 11 per cent. In addition, eight per cent of the respondents stocked the brand at their homes.
Another interesting finding is that the average Indian may have a legendary weakness for mango, but when it comes to preference of fruit-based juices; his choices are in tune with international trends. Therefore, it is orange juice that is the most preferred fruit juice flavour in India, followed by apple, sweet orange and mixed fruit.
The findings indicate that most packaged juice-drinking consumers’ travel abroad on Holidays. Other attributes of branded juice consumers include employment of domestic help, ownership of assets and credit cards, and health consciousness with 80 per cent respondents going to aerobic classes or working out at gymnasiums.
Understandably, therefore, awareness and trial levels of packaged juices are higher within the SEC A category, than among SEC B consumers, the majority of whom rated these as aspirational.
As a clear indication that consumers perceive fruit juices as a grocery purchase, 60 per cent of the respondents consume fruit juices at home. While 55 per cent of the respondents consumed 1-litre packs at home, 45 per cent consumed 200-ml packs.
The Rs 100-crore packaged fruit juice market is estimated to be growing at 25-30 percent annually, with Tropicana and Dabur Foods’ Real holding about 40 per cent market share each.
Tropicana is a subsidiary of PepsiCo family, a leader in foods and beverages. Tropicana went Public in 1969. It was purchased by Beatrice in august 1978 for $490 million in cash and stock and then sold to The Seagram Company Ltd., the Canadian alcoholic beverage maker, for $1.2 billion in March 1988. Later, they sold it to PepsiCo in 1998.
The juice business was sold to the beverage giant for $3.3 billion in cash. Rodkin was then the President and CEO of the company. Tropicana Products, Inc.: the leading producer of chilled orange juice and claims the top spot in the overall U.S. orange juice market, with a share of 33 percent. Tropicana distributes its products in 23 countries.
Initially Tropicana was launched with a bitter taste but gradually they changed it to sweet to attract the Indian consumers. In a way, it revamped their products to suit the Indian palate. To target the people who feel health as ‘The Most Important’ factor to purchase a drink, Tropicana took on the health awareness and from now on ‘The Indian Medical Association (IMA)’ will endorse PepsiCo’s Tropicana fruit juices-‘partnership for health’! It Launch of ‘Tropicana Twister’ to target the young generation. In addition to this, it introduced new flavors i.e. mango nectar, guava pulp and litchi juice- tickling the Indian taste buds. Advertisements were a perfect mix of modern and traditional trade via trial generations, TV, radio, outdoors and consumer-trade promotion. Since, its market share is 30% – after Minute Maid and Real ‘ there is an opportunity to increase this and make Tropicana a leader in this segment.
At the start of the year, it all seemed to make perfect sense. PepsiCo decided that Tropicana, one of its biggest brands, was in need of a major brand overhaul. In January, the company told assembled journalists to expect an ‘historic integrated marketing campaign’ and a redesign that would ‘reinforce the brand and product attributes’ and ‘rejuvenate the category’.
Then PepsiCo introduced its secret weapon. In swept Peter Arnell, chief executive of brand and innovation agency the Arnell Group. In a rambling speech, he described a five-month ‘journey’ that had resulted in ‘dramatic’ changes leading to Tropicana’s packaging being ‘engineered’ to ‘imply ergonomically’ the ‘notion of squeezing’.
Those with prior exposure to Arnell were not surprised by the incoherent grandeur of his presentation that day. This was the designer who had made reference to the Mona Lisa, the Parthenon and the Golden Ratio in his explanation of the Pepsi logo he had created in 2008; who owns 1600 pairs of spectacles; and famously lost almost 18 stones (252 Pounds) in weight by eating carrots, cucumber and steamed cauliflower (dipped in mustard and sesame seeds) every day for two years. The guru c??l??bre was in the house.
There was just one problem. Arnell’s design for Tropicana was awful. Its clean lines and empty aesthetics achieved something Tropicana’s competitors had failed to in 20 years ‘ a degradation of its brand equity and an undermining of its status as market leader. Devoid of its signature design of an orange and a straw, the package looked like a bland, private-label juice. The deficiency was noted first by design students commenting on blogs and then angry consumers who could not find the brand in stores. Finally, it began to hit sales.
Overindulge the creative whim at the expense of the brief and the brand will always pay the price. The disastrous London 2012 logo solicited public disgust in 2007, but there was little, if any, way to calculate the lost impetus from Wolf Olins’ lacklustre design.
But the same mis-step in such an established, ultra-competitive and fast-moving category as fresh juices comes complete with an immediate and estimable impact on the bottom line. Tropicana’s new look has coincided with a sales slump of 20% for the brand this year ‘ $33m (??22.1m) in sales lost to competitors including Minute Maid, Florida Natural and private labels, all of which are reporting sizable share gains.
Understandably, after seven weeks, PepsiCo pulled the plug on the packaging. The integrated marketing campaign will continue, but with shots of the old packaging inserted. Neil Campbell, president of Tropicana North America, admitted: ‘I wouldn’t want to stop innovating as a result of this. At the same time, if consumers are speaking, you have to listen.’
Correct ‘ but what a shame this acknowledgement came six weeks too late. If it had properly pre-tested the disastrous design, consumers would have told PepsiCo that the brand and sales were going to take a hit. Blaming Arnell for this fiasco would be like spanking a dog for peeing on a new rug: he’s just doing what comes naturally. For me, the blame lies with the brand owner for losing sight of marketing’s central and enduring rule ‘ it’s all about the consumer, stupid.
There is no room in marketing for gurus, just good listeners. Creativity has its place in consumer goods, and that place is anchored by a short chain to the market research and brand positioning; I’ve got $33m and an ocean of unsold orange juice to prove the point.
Tropicana’s’current’demographical’focus’is’primarily’on’middle’aged moms’looking’to’increase’their’own’health’and’the’health’of’their families.’Because’orange’juice’is essentially’a’commodity,’brand’loyalty’is’crucial’to’the’revitalization’of’Tropicana’s’sales.’Their’recent’struggles’with’the’competition’proves’that’Tropicana’needs’to target’a’new’demographic.’Instead’of’mothers’and’their’families,’Tropicana’s’focus should’shift’to’a’virtually’untapped’market’of’orange’juice’consumers,’college’aged students.”Targeting’consumers’at’an’early’age’is’the’best’way’to’build’brand’loyalty and’maintain’it’over’time.’
The’new’target’market’will’have’some’expendable’revenue’and’will’likely’be receiving’financial’support’from’their’parents.”Many’college’aged’students’have shifted’to’becoming’more’health’conscious’and’are’looking’to’increase’their’overall health;’in’which’one’way’is’through’their’daily’fruit’intake.”They’are’looking’for’a brand’of’orange’juice’that’is’affordable,’100%’juice'(not’from’concentrate),’and’free of artificial’additives. By’gaining’the’loyalty’of’college’aged’students, Tropicana’will hopefully’be’remembered’down’the’road’when’these’students’stock’the’fridge’for their’own’households’and/or’families.
2.0 Research design
2.1 Title of the project report:
Comparative study on various factors influencing consumer preference with specific reference to Coca Cola and Tropicana (Pepsi Co.)
2.2 Statement of the problem:
Consumer buying behavior is influenced by the culture and subculture. Habits, likes and
Dislikes of the people which can affect the Marketing efforts of a firm to a great extent. The purchase behavior consists of mental, emotional and physical factors. The study of some of these factors in detail is carried out with respect to Coca Cola and Tropicana.
o What are the factors that influence consumer preference with respect to Coca Cola and Tropicana (Pepsi Co.)?
o What is the particular age group of people who are health conscious?
o Which brand has better marketing strategies and campaigns?
2.3 Scope of the study:
This study is applicable to all people of ages close to teenage to recognize their beverage consumption level and choice.
2.4 Objective of the study:
‘ To understand the consumer perception towards soft drinks and healthy fruit drinks
‘ To understand the consumer purchase behavior
‘ To understand what people prefer most towards soft drinks and juices.to find out how effective the marketing strategies of both the brands are.
‘ To find out if people of the targeted group is more or less health conscious
‘ Frequency of consumption of both beverages
2.5 Hypothesis Development
H1: There is no relationship between Product attributes and Brand preference for a Beverage
H2: There is no significant difference in the brand preferred and the advertisement medium selected by the consumers
H3: There is no relationship between the Coco-Cola advertisement campaign and Brand preference
H4: There is no relationship between the Tropicana advertisement campaign and Brand preference
H5: There is no significant difference among gender and Brand Preference for Beverages
H6: There is no relationship between Customer Loyalty and Brand Preference
H7: There is no relationship between customer being health conscious and Preference for Beverages
H8: There is no relationship between advertisements which focuses on importance of health and Preference for Beverages
H9: There is no significant difference in purchase place and Preference for Beverages
H10: There is no relationship between advertisement portrayed and Brand Preference
H11: There is no relationship between the type of purchase made and Preference of Beverages
i. Data collection tools
Data is collected through two methods- Primary and Secondary.
The primary method includes questionnaire method, telephonic method and face to face interviews the questionnaire includes both open ended and close ended questions.
Secondary method includes brochures collection and various other articles of reference.
ii. Sampling details
Universe population: includes people of all ages and of any gender.
Sample size: the respondents/ target group for this study will include people of ages 15 to 25. A group of 100 was questioned.
Purposive sampling techniques are used. In this type of technique there are a certain predefined groups in mind and attempt is made to seek members of this group to be included in the sample.
iii. Tools for data analysis:
‘ Descriptive Statistical Tools: Mean, Median, Skewness And Kutiosis
‘ Statistical Tools: Anova Tests, Paired T test, Correlation And Regression
‘ Graphical analysis
2.7 Limitations of the study:
o Time consuming
o The data is mainly from secondary sources
o Recent data was not available easily
o Subjectivity of each respondent customer
o Diverse range of products to compare from
o Due to the number of factors being too big in number only limited factors are considered
o Confined to a particular range of age groups.
2.8 Operational Definition:
This project studies the limited factors that influence the consumer purchase behaviour towards beverages of soft drink and healthy fruit juices in nature. It considers only the Indian market of consumers. The beverage in respect to which this analysis is done is Coca Cola and Tropicana (Pepsi Co.)
From this study we also analyse the success of the marketing strategies and campaigns of both the brands. The brand image of both brands and customer preference towards both is recorded and interpreted. The consumption patterns of both these beverages are also studied.
2.8 Key concepts/Glossary of terms
1. Brand preference: Brand preference is the measure of brand loyalty in which a consumer will choose a particular brand in presence of competing brands thus preferring one brand over another. It also represents preferred brands under assumptions of equality in price and availability.
2. Brand awareness: Brand awareness is an important way of promoting commodity-related products. This is because for these products, there are very few factors that differentiate one product from its competitors. Therefore, the product that maintains the highest brand awareness compared to its competitors will usually get the most sales.
3. Consumption pattern: In this unit we are going to discuss some fundamental questions regarding the nature of consumption, the social aspect of consumption and the relationship that it has with production. We will examine the patterns of consumption in both pre-industrial and industrial societies. It includes an account of the factors that affect consumption in technologically advanced societies.
4. Brand personality: A set of human characteristics that are attributed to a brand name. A brand personality is something to which the consumer can relate, and an effective brand will increase its brand equity by having a consistent set of traits. This is the added-value that a brand gains, aside from its functional benefits. There are five main types of brand personalities: excitement, sincerity, ruggedness, competence and sophistication.
5. Consumer behavior: The study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs; and the impacts that these processes have on the consumer and society. Consumer behavior focuses on how individuals make decisions to spend their available resources (time, money, effort) on consumption-related items that includes what they buy, why they buy, when they buy it, where they buy it, how often they buy it, how often they use it, how they evaluate it after the purchase and the impact of such evaluations on future purchases, and how they dispose of it.
6. Purchase power: General: The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you’d be able to purchase. It is the extent to which a person, firm, or group has available funds to make purchases.
7. Decision making process: Decision making is the mental process resulting in the selection of a course of action among several alternatives. Every decision making process produces a final choice in an action or an opinion of choice. If a person neither takes and action nor gives an opinion, this is also decision.
8. Customer satisfaction: is a term frequently used in marketing. It is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as “the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals. In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a customer satisfaction metric very useful in managing and monitoring their businesses. It is seen as a key performance indicator within business and is often part of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. Understanding what drives customer satisfaction and loyalty is crucial to your organization’s continued success. Customer insight can help you retain and deepen your relationships with your customers. It can also help you drive profitability through reduced sales costs and recurring revenue.
9. Social advertising: Consumers of social media actively provide information to the social domain they are visiting in order to get the most benefit and value from their online experience as they connect and interact with friends. Some of the information provided to the site is personal, while some is social or interpersonal. Social marketing seeks to develop and integrate marketing concepts with other approaches to influence behaviors that benefit individuals and communities for the greater social good. It seeks to integrate research, best practice, theory, audience and partnership insight, to inform the delivery of competition sensitive and segmented social change programs that are effective, efficient, equitable and sustainable.
10. Brand ambassador: Brand ambassador is a marketing term for a person employed by an organization or company to promote its products or services within the activity known as branding. The brand ambassador is meant to embody the corporate identity in appearance, demeanor, values and ethics. A brand ambassador is someone who is genuinely interested in your brand and is willing to spread the word for you. Brand ambassador programscan be structured differently according to goals. For startup companies the brand may want to use an ambassador program to spread the word about the brand itself. For larger companies brand ambassador programs are used to launch a new product or to target a new consumer market. For some companies they may want to add one to simply add more content to their site. There are many possibilities for use.
11. Market segmentation: Market segmentation basically means division of a market into small identifiable groups. This is usually done to increase the effectiveness of a marketing strategy. Few companies are big enough to supply the needs of an entire market; most must breakdown the total demand into segments and choose those that the company is best equipped to handle..
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