A

PROJECT REPORT
ON
BRAND PREFERENCE TOWARDS SOFT DRINKS
AT
COCA COLA PVT. LTD
Submitted
BY
SAVARAM SAMBASIVA AKHIL
H.T.NO: 1302-17-672-207
Project submitted in partial fulfillment for the award of Degree of
MASTER OF BUSINESS ADMINISTRATION

By
Department of Business Administration
AURORA’S PG COLLEGE (MBA)
RAMANTHAPUR
(Affiliated to Osmania University)
 A STUDY ON BRAND PREFERENCE OF SOFT DRINKS”

INTRODUCTION

In our modern world living pattern and life style of the people have changed a lot. Soft drinks

were common preference among all the individuals with the changing life style and income

levels, people are shifting their consumption patterns. Market research is based on

consumer’s buying preference towards soft drinks. Soft drink is an important product item in

modern society both urban and rural and becoming more popular in the consumer world. At

present soft drink market is one of the most competitive markets in the world. In which crores

of rupees on advertisement and other promotion activities are being spent. In India the soft

drink industry is flourishing well with a wide range of brand comprising both popular

international, national and regional branded soft drinks. In present investigation, the impact

of globalization on brand preference of soft drinks and the factor determining the brand

preference is studied. The study on brand preference becomes necessary.  The purchase

decision largely depends upon Taste, Quality, Quantity, Price, Availability and the like. Due

to globalization, there are many soft drink brands available in the market such as Coca- cola,

Pepsi-cola, Sprite, Fanta etc..

In current scenario, where the competition is tough, consumer choose preferred brand

according to their pleasure. The company can achieve and complete in the market, only when

they satisfy the needs of the customer by taking in to account their reason for brand

preference. This study examines key attitude of buying and branding perception that are

considered as important cues, which lead youth to select particular brand of soft drink. The

primary data has been collected through questionnaire.

NEED OF THE STUDY:

The study was conducted to know the brand preference and factors influencing young

consumers of packaged soft drink. Soft drink is an important product item in the modern

society. It is mainly concentrated on the consumption among youth. It is found that a great

important for the study. The study examines key attitude of buying and brand perception with

preference that are considered as important cues, which lead youth to select particular brand

of soft drink. In modern world due to the development of science and technology many new

brands of soft drink products flood the market every year. When the new brands enter in to

the market, some consumers switch over to it. So the study was conducted to know the brand

preference and consumption among youth in soft drinks.  

OBJECTIVES OF THE STUDY:

·        To identify the brand preference of soft drinks coca cola.

·        To know the factors influencing their purchase decision.

SCOPE OF THE STUDY:

The study was conducted among  young consumers. The study is intended to assess level of

soft drink consumption. It help us to understand the various factors influencing the young

consumers of packaged soft drinks. It also provides various information to us regarding the

attitude of youth towards soft drinks.

RESEARCH METHODOLOGY

According to Robert Ross, “Research is essentially an investigation, a recording and an

analysis of evidence for the purpose of gaining knowledge”. Research can be generally

defined as systematic methods of finding solution to problems. Research is an art of scientific

information. It involves gathering data, use of statistical techniques, interpretation and

drawing conclusion about the research data. Methodology is a method of solving problems

systematically. It is based on both primary data and secondary data collected, mainly from

Journals, books, internet and previous studies.

RESEARCH DESIGN

The success of any business research depends upon a sound research design. Research design

is used as a guide in collecting and analysis of data. Research design is the arrangement of

condition for collection and analysis of data in a manner that aims to combine to the research

purpose with economy in procedure. It constitutes the blue print for the collection,

measurement and analysis of data.

SOURCE OF DATA

1.     Primary data.

Primary data are those data, which are collected for the first time. Primary data was collected

by conducting survey through a questionnaire which seeks answer to a set of preconceived

question in a structured way. The questionnaire consists of 21 questions.

2.     Secondary data.

The secondary data are those data which have already been collected. It means data that was

already available. Secondary data was collected from sources like Journals, internet and

previous studies.

Sampling Design

Sampling may be defined as the selection of some part of an aggregate or totality on the basis

of which a judgement or inference about the aggregate or totalities is made

A sample design is a definite plan for obtaining a sample from the sampling frame. It refers to

the technique or procedure the search would adopt in selecting sampling units from which

inference about the population drawn

The sampling technique used in the study is convenience sampling. This method includes

purposive and deliberated selection of a particular unit of the universe for consulting a sample

which represents the universe. Sample size is 50 for this study.

Tools of Analysis

1. Questionnaire

2. Percentage Analysis

Analytical Tools

1. Graphs

2. Tables
3. Diagrams

LITERATURE REVIEW

However a number of studies have been conducted in the form of surveys and research work

done on. Consumption pattern and brand preference towards soft drink product. An attempt

has been made to understand and acknowledge the work of various researchers in the field of

brand preference and consumption pattern of soft drinks.

In their studies soft drink industry in India is one of the most competitive with many

international and domestic players operating in the market. Initially domestic player like pare

group dominated the Indian soft drink market. However with the re-entry of MNC players

like pepsin 1991 and coca-cola in 1993, the market took a decisive shift in favour of these

MNCs and over the years coca-cola and pepsi have become the prominent players in the

market.

Studies of soft drink market Indian soft drinks market grew 7.7% in 2008 to reach a value

of$3.4 billion. In 2013,the Indian soft drinks market is forecast to have a value of $4.6

billion. An increase of 36.9% since 2008. All the major players in cola market put their best

strategies to capture more and more out of this lucrative progress. In the modern arena of

information, it takes something or someone special to please the consumer. A celebrity is

often considered to be the vital basis for the brand association of a product and this fact

becomes stronger when it comes to soft drinks industry in India. India is one country, which

has always idolized the stars of the celluloid world. Therefore in the words of Mccracken, a

celebrity endorser is someone who besides enjoying popularity and public recognition, uses

this recognition to promote a consumer good or service by appearing in the advertisements

for the same. It is not essential (rather it is seldom the case) that a celebrity in a particular

field promotes the products only in that particular domine. It is the credibility of the endorser

which helps in the repurchase or first time purchase of the product. It may be said that the

celebrity transfers some of his/her traits to the product or service (or atlest it is so perceived

by the customer). Even the studies conducted by Agrwal, Kamakura & Mathur and Mathur &

Ranjan, emphasized the effectiveness of using a celebrity endorsers. In India there is an

exponential potential for a celebrity endorsement to be perceived as genuinely relevant,

thereby motivating consumers to go in for the product. No wonder India’s and market which

has an estimated worth of more than $3000 million consists of around 30% of spending on

ads featuring celebrities.

 With amplification in number of mass media option and competition for consumers

attention, cola giants are increasingly using celebrity endorsement strategies to break

through the clutter and enhance the equity for their brand. Although celebrity

endorsement has emerged as a popular advertising practice, not much research has

been done to evaluate the effectiveness of it in India. some of the facts which support

the trend of celebrity endorsement in general and across soft drinks market in India

are:

 Celebrity endorsement advertisement on TV up 49% in 2007

 Pepsi ropes in Chiranjeevi Jr to take on thums up in AP

Marketers overtly acknowledge the power of celebrities in influencing consumer-purchasing

decisions. It is an ubiquitiously accepted fact that celebrity endorsement can bestow special

attributes upon a product that it may have lacked otherwise. Although celebrity advertising

celebrity advertising for soft drinks brands is popular in India. Little is known about its

effectiveness in India. Thus the primary motive behind this research project is to measure this
effectiveness using some of the existing scale and methodologies and try and establish the

relationships which exist between the attitude of the youths towards celebrity endorsement

and their brand loyalty towards a low involvement product soft drink brand while paying

special attention on the personality traits of the celebrity endorsing the soft drink brand. This

should give us an insight into the consumer behavior in response to celebrity endorsement in

case of carbonated soft drinks.

What is soft drink?

A non-alcoholic, flavour, carbonated beverage, usually commercially prepared and sold in

bottles or cans. Nonalcoholic beverage, usually carbonated, consisting of water (soda water),

flavoring, and a sweet syrup or artificial sweetener. Today there are hundreds of varieties of

flavored soft drinks. Coca-cola and pepsico are the world’s largest corporation founded their

business on soft drink manufacturing

Soft drinks can trace their history back to the mineral water found in natural spring. bathing

in natural springs has long been considered a healthy thing to do; and mineral water was said

to have curative power. Scientists soon discovered that gas arbonium or carbon dioxide was

behind the bubbles in natural mineral water.

The marketed soft drinks (non-carbonated) appeared in the 17th century. They were made

from water and lemon juice sweetened with honey. In 1679, the compagine delimonadiers

Paris were granted a monopoly for the sale of lemonade soft drinks.
Anderson and Vileassim (2001) in their study on “Soft drinks structural demand model for
retail category pricing” concluded that the derivation of carbonated for soft drinks demand
from consumer theory ensures that aggregate demand is “well behaved”. Such that a retailer’s
corresponding profit function satisfied all the conditions necessary for deriving an optimal
price vector. Once this specification is used to study category.

Matraves (2002) in his study on “European integration and market structure in the soft
drinks industry” concluded that the evidence is consistent with the market size increased, this
raised the incentive for pepsi to and other concentrate producers to escalate their soft drinks
advertising expenditure. However, no such escalation was observed by later entrants, indeed
the evidence suggested that Coco-cola was increasingly their advertising expenditure even
faster. This implies that the first-mover advantage is stronger than the market size expansion
effect in the EU soft drinks industry.

Carton, and Perloff (2005) in their study titled, “Modern Industrial Organisation”, states
that strong brand competes on two fronts: with other strong brands through price and non-
price competition, and with weak brand in a competitive fringe. Fringe supply of soft drinks
is a function of the price ser by the dominant frim. By focussing on retailer contracted
promotions that encourage asynchronous promotions by dominant brands, the soft drink
study described here differs from Steenkamp et al (2005); specifically, the interplay between
strong brand and weak brands may be explored.

Berker (2008) in his study on “Comparing strategies, innovation trajectories and knowledge
sources in Dutch soft drink production” concluded that their supplier and the business need
for product diversification. He decided to enter the market for nonalcoholic beverage with a
new kind of soft drink almost at the same time. He also managed to ewer the market for soft
drinks in the late 1930. It was more than just the difference in financial backing that led to
this alternative innovation strategy, for it seems there was also a disparity in business culture.
Their main suppliers suggested they develop fruit and vegetable based soft drinks, which
seemed an interesting path. The horticulturists contacted the food preserving industry, both
individually and through their existing horticultural networks. He was probably attracted to
the idea as a result of the promotional activities of the national horticultural network, which
had been activated by the regional network.
 BIBLIOGRAPHY
BOOKS:
1) Anderson, E. and N. Vilcassim, “Soft Drinks Structural Demand Models for Retail
Category Pricing,” Working Paper, University of Chicago, 2001.
2) Carlton, D.W., and J.M.Perloff, Modern Industrial Organisation, (Fourth Edition),
Boston, MA Addition Wesley, 2005.
3) Erick Berkers, “Comparing company strategies innovation trajectories and knowledge
source in Dutch soft drink production in the 1930”, Business History, Vol.50, No.3,
May 2008, pp.351-367.
4) Catherine Matraves, “European Integration and Market Structure in the Soft Drinks
Industry in Economic of Business”, Vol.9, No.3, 2002, pp.295-310.