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Drink Market – Consumers Purchasing Behavior

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    Soft drinks are non-alcoholic water-based flavoured drinks that are optionally sweetened. acidulated and carbonated. Some carbonated soft drinks besides contain caffeine ; chiefly the brown-coloured Cola drinks. PROBLEM STATEMENT To happen out consumers purchasing behavior and to place spreads in the industry if any. RESEARCH OBJECTIVE To happen out the factors impacting soft drinks purchasing form. To happen out the consumers purchasing wonts. Seasonal alterations in the purchasing wonts. To happen out the consumer’s hereafter demands and gestate an advanced merchandise. To analyze the overall Beverages industry. Soft DRINKS MARKET – AN OVERVIEW.

    Global Scenario The planetary soft drink industry is extremely concentrated. being mostly controlled by the two transnational companies ; Coca Cola and PepsiCo. Coca Cola leads the carbonated soft drink market in most states in the universe with 60 % of the planetary Cola market with its flagship Coca-Cola trade name. Other noteworthy participants include Cadbury Schweppes. Indian Scenario In the flourishing soft drinks industry. multinationals seem to be the biggest victors in footings of market portion. The Coca-Cola Company led the extremely amalgamate market with a 42. 8 % volume portion. followed by PepsiCo at 28. 6 % in 2004. Danone is a minor participant in India with a 0.

    5 % portion. chiefly due to its late market entry and limited offerings. Harmonizing to authorities estimations soft drinks marketed in India were 6540 million bottles in March 2001. The market growing rate. which was around 2-3 % in ‘80s. increased to 5-6 % in the early ‘90s and is soon 7-8 % per annum. Most of the gross revenues of soft drinks take topographic point during summers while merely 5-6 % of entire gross revenues take topographic point in winters. In summers the high season stopping points for 70-75 yearss. which contributes more than 50 % of the entire annual gross revenues. In footings of regional distribution Cola drinks have chief markets in metro metropoliss and northern provinces of UP. Punjab. Haryana etc.

    Orange flavoured drinks and sodium carbonates are popular in southern provinces. Western markets have penchant towards mango-flavoured drinks. Non-alcoholic drink market can be divided into fruit drinks and soft drinks. Soft drinks available in glass bottles. aluminum tins. PET bottles or disposable containers can be divided into carbonated and non-carbonated drinks. Cola. lemon and oranges are carbonated drinks and non-carbonated drinks include mango drinks. Soft drinks can besides be divided into Cola merchandises and non-cola merchandises. Cola merchandises in Indian include trade names like Pepsi Cola. Diet Pepsi. Coca- Cola. Diet Coke. Thumps Up etc.

    Cola drinks history for about 61-62 % of the entire soft drinks market in India. Non-Cola merchandises account for 36 % the entire soft drink market. Until 1990s. domestic participants like Parle Group ( Thumps Up. Limca. Goldspot ) dominated the softdrink market in India. However. with the coming of the MNC participants like Pepsi ( 1991 ) and Coke ( re-entered in 1993 after it was banned in 1977 ) in the early 1990s. the market control shifted towards them by the late ninetiess. The per capita ingestion of soft drinks in India is among the lowest in the universe – 5 bottles per annum compared to the 800 bottles per annum in the USA.

    Delhi reports the highest per capita ingestion in the state – 50 bottles per annum. The ingestion of PET bottles is more in the urban countries ( 75 % of entire PET bottle [ plastic bottles ] ingestion ) whereas the gross revenues of 200ml bottles were higher in the rural countries. Harmonizing to a study. 91 % of the soft drink ingestion in India is in the lower. lower center and upper in-between category subdivision. After a slightly hushed public presentation in 2006 due to a return of the pesticides contention. soft drinks gross revenues bounced back strongly to enter double-digit volume growing in 2007.

    With carbonates growing back on a positive upward curve alongside burgeoning gross revenues of fruit/vegetable juice and bottles H2O. soft drinks showed impressive growing in 2007. Off-trade volumes grew somewhat faster than on-trade volumes. driven by higher ingestion of packaged and branded soft drinks at place and on the spell. The outgrowth of supermarkets/hypermarkets. heavy consumer publicities and assorted new merchandise launches played a cardinal function in driving off-trade volume growing. Soft drinks gross revenues in 2007 were propelled by bottled H2O and fruit/vegetable juice with their healthier positioning assisting to drive gross revenues of soft drinks.

    While carbonates posted single-digit growing in 2007. bouncing from the pesticides contention of 2006. it was bottled H2O and fruit/vegetable juice that stormed in front with high double-digit growing rates. Poor municipal substructure for tap H2O has pushed gross revenues of majority packaged H2O to families. Fruit/vegetable juice is turning as a consequence of increased consumer outgo on of course healthy ( NH ) drinks. While functional drinks and RTD tea besides posted impressive growing in 2007. they were turning from a really little base and are yet to accomplish a critical mass in footings of set uping a loyal consumer base.

    With consumers demoing a turning penchant for healthier soft drinks such as bottled H2O and fruit/vegetable juice instead than carbonates in 2007. the two carbonates giants suffered a fringy diminution in portion. Although both participants embarked on a alteration in scheme to concentrate more on non-carbonated soft drinks in their portfolios. they were unable to keep portion and lost out somewhat to home-grown participants Parle Bisleri and Dabur India. Coca-Cola India launched Minute Maid and pushed the gross revenues of its juices while PepsiCo India to a great extent promoted Tropicana. Aquafina and Gatorade during 2007.

    In add-on. Coca-Cola India and PepsiCo India embarked on re-branding themselves as entire drink participants and non merely carbonates participants. With the retail scene in India undergoing a rapid metabolism with the constitution of supermarkets/ hypermarkets and convenience shops. soft drinks gross revenues have benefited positively. Peoples in urban countries are progressively flocking to supermarkets to pick up forte points that are non available in the kirana shops that are found all over India. Modern retail mercantile establishments have provided soft drinks participants with many chances to force their trade names.

    Consumer publicities for fruit/vegetable juice and emerging sectors such as RTD tea and functional drinks are driving merchandise sampling. Attractive point-of-sale ( PoS ) shows and gift battalions of dressed ores are besides pulling consumer attending in supermarkets/hypermarkets. Heath drinks Soft drinks is expected to post a strong public presentation on the dorsum of increasing richness amongst consumers and germinating life styles which lead to consumers giving less clip to fixing fresh nutrient and drink at place.

    Competition from the unorganized sector will decrease bit by bit as consumers show greater antipathy to purchasing unpackaged and unbranded soft drinks from street sellers due to wellness and hygiene concerns. Rising wellness consciousness is besides expected to drive gross revenues of of course healthy ( NH ) soft drinks such as 100 % juice and mineral H2O. In add-on. soft drinks such as athleticss drinks and juice-based carbonates are besides expected to do good over the forecast period as consumers perceive them to be healthy. Softdrinks can be segmented on the footing of carbonation. spirit type or topographic point of ingestion.

    Based on carbonation. soft drinks are chiefly classified into carbonated and non-carbonated drinks. While the carbonated drinks chiefly include Cola. orange and lemon. the non-carbonated drinks include mango spirits. Cola merchandises account for over 60 % of the entire soft drink market and include popular trade names such as Coca-Cola. Pepsi. Thumps Up etc. Non-cola section constitutes for over 35 % of the market and can be divided into four bomber groups based on types of available spirits that include – *Orange: Popular trade names include Fanta. Mirinda Orange etc. *Clear calcium hydroxide: 7Up. Sprite *Cloudy calcium hydroxide: Limca. Mirinda Lemon.

    *Mango: Maaza. Slice Carbonates history for over 54 % of entire soft drinks gross revenues in volume footings in India. with gross revenues amounting to 2. 3 billion liters in 2004. CONSUMER’S PROFILE Soft drinks are impulse purchase merchandises. and there is an component of indulgence associated with them. It does non calculate really high on the shopping list. The consumer buys it merely to while away clip or as a replacement to H2O. Since. the older coevals is of the sentiment that nil can replace H2O. the companies by and large target the childs. adolescents. kids. employee of corporate offices.

    As these merchandises are general merriment drink. trade name truenesss are non strong for a peculiar trade name and consumers look for freshness and new spirits. Soft drinks consumption to a great extent relies on seasons. Though consumers are going wellness witting. fans of authoritative carbonated soft drinks ( CSDs ) still are on the big. Sampling DESIGN TARGET POPULATION Consumers are surveyed to cognize their penchant. The respondents are between the age group of 15 to 40. All the respondents are occupants of Mumbai metropolis. SELECTING A Sampling TECHNIQUE The sampling was done on a random footing whereby the respondents visited and primary informations is collected.

    The Respondents were selected as per convenience sampling. RESEARCH DESIGN The research design was Exploratory in nature. Secondary Data and the Data from the Questionnaire were used to make the Analysis. This Exploratory research was done to give the penetrations about Consumers purchasing behavior. The factors impacting their purchase of Soft- Drinks. DATA Collection: The Primary information was collected through questionnaire administered to Consumers. The Secondary Data was collected through Internet. Business diaries. The questionnaire was designed maintaining the overall aims and the information required.

    The questionnaire administered to the Consumers was aimed at happening out their penchant & A ; factors impacting their purchase determination for Soft drinks and besides to place how these bing merchandises can be improved harmonizing to the consumers. DATA Analysis: Data Analysis is being done set uping the information in tabular signifiers and utilizing graphical representations. The study conducted and the related findings. How many bottles ( see 350 milliliter ) of cold drinks do you devour? CONSUMPTION IN BOTTLES ( 350 milliliter ) 1 in a week1 in 4 days1 in 2 yearss & gt ; 1 in a twenty-four hours 25 % 42 % 27 % 6 % Analysis.

    Consumers proffered holding cold drinks one time in a hebdomad or 4 yearss. Regular consumers were few. Consumption increased during the summers. Consumption is more amongst adolescents and childs. Young professionals besides consumed cold drinks on a regular basis largely since it came complimentary with other nutrient points such as pizzas or Burgers. It is besides used by working professionals as lunch-time replacement for H2O. Do you by and large stick to trade names? YES89 % NO11 % Analysis: It is seen that. consumers are extremely trade name witting. The large trade names have been successful in making trueness towards their merchandises in the long tally.

    But. it is seen that. the consumers are non peculiar about one specific trade name. Equally long as the trade name is known to him/her. the merchandise would be consumed. Besides. the safety issues refering drinks are high. Hence. unbranded drinks are non popular. Make you lodge to a peculiar trade name? YES27 % NO73 % Analysis: It is seen that consumers look for branded drinks. but non for a peculiar merchandise as such. Equally long as the merchandise is from a well- known trade name. it will be consumed. It is besides seen that. whenever a peculiar soft-drink isn’t available. any other replacement plants.

    Hence. exchanging trade names is comparatively easy. Make you prefer ‘no fizz’ drinks ( e. g. Slice. Maaza ) or ‘strong fizz’ drinks e. g. ( Thumbs up or Pepsi ) ? Fizz LevelPercentage Strong Fizz16. 7 % Light Fizz25 % No Fizz58. 3 % Analysis A really important trend-shift towards no-carbonated drinks is seen. Previously. CSD ( carbonated Soft drinks ) have been really popular. Recently this tendency has been altering. Peoples now prefer ‘no fizz’ drinks. ‘Strong fizz’ i. e. cold drinks with high C concentration are running low on popularity. How Important are the undermentioned Factors? Analysis.

    Most of import factors as considered by consumers as per the study consequences. are Brand. spirit and nutritionary value. Shape of the bottle or packaging is the least of import standards. Flavour is besides an of import factor. Data tabular array is given below: FactorsLeast ImportantSomewhat ImportantAverageImportantCriticalN/ARating Average Color22. 2 % 44. 4 % 11. 1 % 0. 0 % 11. 1 % 11. 1 % 2. 25 Flavour0. 0 % 22. 2 % 22. 2 % 33. 3 % 22. 2 % 0. 0 % 3. 56 Quantity0. 0 % 16. 7 % 50. 0 % 33. 3 % 0. 0 % 0. 0 % 3. 17 Nutrition value0. 0 % 20. 0 % 10. 0 % 50. 0 % 20. 0 % 0. 0 % 3. 70 Shape of bottle42. 9 % 0. 0 % 28. 6 % 0. 0 % 14. 3 % 14. 3 % 2.

    33 Packaging50. 0 % 16. 7 % 0. 0 % 0. 0 % 0. 0 % 33. 3 % 1. 25 Brand11. 1 % 0. 0 % 11. 1 % 22. 2 % 44. 4 % 11. 1 % 4. 00 Exclusivity0. 0 % 16. 7 % 16. 7 % 16. 7 % 0. 0 % 50. 0 % 3. 00 Would you prefer alimentary drinks over others? YES72 % NO22 % Analysis: Peoples are turning more wellness witting due to the altering tendencies. turning awareness degrees. better instruction and criterion of life. This leads them towards more nutritionary drinks. Consumers are now looking for cold-drinks that besides satisfy other demands or supply added benefits along with being merely a cold drink. Do you like energy drinks more? YES68 % NO32 % Analysis:

    Energy drinks are rather popular in the Indian markets with Red Bull being the premier participant and a few other trade names. The monetary values are still high sing the Indian markets. Would you like a glucose induced packaged imbibing H2O? YES79. 3 % NO20. 7 % Analysis: Packaged imbibing H2O gross revenues have grown manifolds in the last decennary due to improper hygiene and improper municipal attention. Consumers seem lament on holding a merchandise that can supply them added benefits with the packaged imbibing H2O. such as. glucose induced H2O. Do you prefer the authoritative CSD ( carbonated soft drinks ) over anything else?

    YES41 % NO59 % Analysis There are a important per centum of consumers who have strong penchants towards carbonated soft drinks. Most of these respondents are male. Would you purchase a drink that comes in 3 fluctuations depending on its degree of ‘fizz’ ? YES79. 3 % MAYBE23. 1 % NO20. 7 % Analysis: In this inquiry. a conceptual merchandise with 3 degrees of fizz was put up to the respondents. The audience responded rather favorably towards the thought. Since there is a divide amongst consumers who prefer strong fizz and the others who prefer no fizz drinks. such a merchandise is given a pollex up by the consumers.

    Would you like to hold an extra merchandise ( e. g. french friess ) as a packaged merchandise along with your cold drinks? YES53. 8 % MAYBE30. 8 % NO15. 4 % Analysis: By and large. consumers have cold drinks along with wafers. french friess or some sort of bite. In this inquiry. the reaction of consumers is noted for how would they wish it if the companies could come up with some offer where in the bites come up bundled with the soft drink. These bites can be suited best for the gustatory sensation of the peculiar merchandise along with which it could be supplied. CONCLUSION AND RECCOMMENDATIONS:

    The soft drinks market is an attractive industry with batch of range for new entrants. Even if there are branded participants since decennaries. tendencies are switching now towards unconventional merchandises. New inventions sing spirit and nutritionary value are most welcomed by the consumers. Life styles are altering and stress degrees are high. This drives consumers to look for added benefits with the conventional ‘colas’ . Hence. now consumers prefer cold drinks with natural fruit infusions. flavoured milk or energy drinks. A certain disfavor towards carbonated drinks is seen particularly amongst female consumers.

    As compared to other soft drinks these nutritionary drinks are bit costly. Wayss should be thought of to cut down these rates and do them more low-cost. Besides. there are merely mango flavoured. lemon flavoured or orange flavoured drinks available in the no-fizz class. More spirits can be tried. Trade names should emphasize more on the nutritionary value of the cold-drink and stipulate precisely how much of the day-to-day nutrition will it supply them. A new merchandise particularly for females could be come up with. APPENDIX Cold drinks 1. Default Section 1.

    How many bottles ( see 350 milliliter ) of cold drinks do you devour? How many bottles ( see 350 milliliter ) of cold drinks do you devour? one in a hebdomad one in 4 yearss one in 2 yearss one in a twenty-four hours more than 1 bottle in a twenty-four hours Other ( delight stipulate ) 2. Make you by and large stick to one trade name or easy exchange trade names? Do you by and large stick to one trade name or easy exchange trade names? Yes No Possibly 3. Make you prefer ‘no fizz’ drinks ( e. g. Slice. Maaza ) or ‘strong fizz’ drinks like Thumbs up or Pepsi?

    Make you prefer ‘no fizz’ drinks ( e. g. Slice. Maaza ) or ‘strong fizz’ drinks like Thumbs up or Pepsi? no fizz light fizz strong fizz Other ( delight stipulate ) 4. Please choice harmonizing to your penchant ( 5 being the highest ) Least ImportantSomewhat ImportantAverageImportantCriticalN/A Color Please choose harmonizing to your penchant ( 5 being the highest )

    Color Least Important Somewhat Important Average Important Critical N/A Flavour Flavour Least Important Somewhat Important Average Important Critical N/A Quantity Quantity Least Important Somewhat Important Average Important Critical N/A Nutrition value Nutrition value Least Important Somewhat Important Average Important Critical N/A.

    Shape of bottle Shape of bottle Least Important Somewhat Important Average Important Critical N/A Packaging Packaging Least Important Somewhat Important Average Important Critical N/A Brand Brand Least Important Somewhat Important Average Important Critical N/A Exclusivity Exclusivity Least Important Somewhat Important Average Important Critical N/A 5. Would you like your cold drink bottle to come in varied sizes so that it can be accomodated anyplace? Would you like your cold drink bottle to come in varied sizes so that it can be accomodated anyplace? Yes No Maybe.

    Other ( delight stipulate ) 6. Would you purchase a drink that comes in 3 fluctuations depending on its degree of ‘fizz’ ? Would you purchase a drink that comes in 3 fluctuations depending on its degree of ‘fizz’ ? Yes No Possibly 7. Would you prefer your cold drink bottles to continue the fizz for several yearss after opening the bottle?

    Would you prefer your cold drink bottles to continue the fizz for several yearss after opening the bottle? Yes No Possibly 8. Would you like to hold an extra merchandise ( e. g french friess ) as a packaged merchandise along with your cold drinks? Would you like to hold an extra merchandise ( e. g french friess ) as a packaged merchandise along with your cold drinks? Yes No Possibly 9.

    Would you like to purchase cold drinks. if you will acquire some promotional offer along with your cold drinks? Would you like to purchase cold drinks. if you will acquire some promotional offer along with your cold drinks?

    Yes No Possibly 10. Gender? Gender? Male Female.

    BIBLIOGRAPHY hypertext transfer protocol: //resources. bnet. com/index. php? hypertext transfer protocol: //www. agriculture-industry-india. com/agricultural-commodities/soft-drinks. hypertext markup language hypertext transfer protocol: //www. foodindustryindia. com hypertext transfer protocol: //www. euromonitor. com hypertext transfer protocol: //www. icmrindia. org.

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