Brand Preferences of Mango Soft Drinks among Consumers
Executive Summary
The study on “Brand Preferences of Mango Soft Drinks among consumers� was undertaken to develop the understanding about the consumers’ brand preferences of mango soft drinks. The study presents the comparative analysis of Slice & Maaza. These are the two toughest competitors in the bottled mango soft drinks market. The study covers the urban markets of Hubli & Dharwad. The retailers & consumers selected for the study were questioned on various parameters of both the brands. This report is divided into two parts. The first part contains the theoretical framework of the Consumer Behaviour; its meaning and importance, the Concepts of Consumer Behaviour, Brands and competition strategies for consumer products. The second part is on the research work of Brand Preferences of Mango Soft Drinks among consumers. It contains the introduction of the problem & the company, Research Methodology, Tabulation & Analysis and Suggestions & Conclusions etc.
Babasabpatilfreepptmba.com
Page 1
Brand Preferences of Mango Soft Drinks among Consumers
Sl No
Contents
Page No
Part 1: Theoretical Background 1
The Four P Components Of The Marketing Mix 3
2
The Buyer Decision Process
4
3
Types Of Buying-Decision Behavior
6
4
Factors Affecting Consumer Behavior
7
5
Brands & The Role Of Brands
9
6
Competitive Advantage & Strategies
11
Part 2: Research Work 1
About the Problem
14
2
About Pepsi
14
3
About Nectar Beverages Pvt Ltd
24
4
Research Methodology
30
5
Tabulation & Analysis
33
6
Findings
48
7
Suggestions & Conclusions
51
8
Bibliography
54
9
Annexure
55
Babasabpatilfreepptmba.com
Page 2
Brand Preferences of Mango Soft Drinks among Consumers
THEORITICAL BACKGROUND
Babasabpatilfreepptmba.com
Page 3
Brand Preferences of Mango Soft Drinks among Consumers
THE FOUR P COMPONENTS OF THE MARKETING MIX PRODUCT: Product Variety Quality Design Features Brand name
Sizes Services Warranties Returns Packaging
PLACE: Channels Coverage Assortments
Inventory Transport Locations
PROMOTION: Sales promotion Advertising Sales people
Direct Marketing Public Relations
PRICE: List Price Discounts Allowances
Credit Terms Payment Period
Babasabpatilfreepptmba.com
Page 4
Brand Preferences of Mango Soft Drinks among Consumers
THE BUYER DECISION PROCESS The Five Stage Model of the Consumer Buying Process:
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Postpurchase behavior
Babasabpatilfreepptmba.com
Page 5
Brand Preferences of Mango Soft Drinks among Consumers
Need recognition •
Needs can be triggered by: •
Internal stimuli •
•
Normal needs become strong enough to drive behavior
External stimuli •
Advertisements
•
Friends of friends
Information search •
Consumers exhibit heightened attention or actively search for information.
•
Sources of information:
•
•
Personal
•
Commercial
•
Public
•
Experiential
Word-of-mouth
Evaluation of alternatives •
Evaluation procedure depends on the consumer and the buying situation.
•
Most buyers evaluate multiple attributes, each of which is weighted differently.
•
At the end of the evaluation stage, purchase intentions are formed.
Purchase decision •
Two factors intercede between purchase intentions and the actual decision: •
Attitudes of others
•
Unexpected situational factors
Babasabpatilfreepptmba.com
Page 6
Brand Preferences of Mango Soft Drinks among Consumers
Postpurchase behavior •
Satisfaction is important: •
Delighted consumers engage in positive word-of-mouth.
•
Unhappy customers tell on average 11 other people.
•
It costs more to attract a new customer than it does to retain an existing customer.
•
Cognitive dissonance is common
TYPES OF BUYING-DECISION BEHAVIOR
brandsDifference between
Involvement Level High Low Significant Differences
Complex buying behavior
Variety-seeking buying behavior
Few Differences
Dissonancereducing buying behavior
Habitual buying behavior
Babasabpatilfreepptmba.com
Page 7
Brand Preferences of Mango Soft Drinks among Consumers
FACTORS AFFECTING CONSUMER BEHAVIOR 1. 2. 3. 4.
Cultural Factors Social Factors Personal Factors Psychological Factors
Cultural Factors •
Culture: It is the fundamental determinant of a person’s wants & behaviour.
•
Subculture: It provides more specific identification and socialization for their members. It includes nationalities, religions, racial groups, and geographical regions.
•
Social Class: It is relatively homogenous and enduring divisions in a society.
Social Factors •
Groups •
Membership groups: They have direct influence on the buyer.
•
Reference groups: They have a direct or indirect influence on buyer’s attitudes
•
Opinion leaders: They are the persons who offer advice or information about product or a product category.
•
Family: It is the most important consumer buying organisation in the society and the family members constitute the most important primary reference group.
•
Roles and Status: A role consists of the activities a person is expected to perform. Each role carries a status.
Babasabpatilfreepptmba.com
Page 8
Brand Preferences of Mango Soft Drinks among Consumers
Personal Factors •
Age and life cycle: People buy different goods and services over a lifetime.
•
Occupation: It also influences the consumption patterns. Persons of different occupations have different needs.
•
Economic situation: A country’s or region’s economic situation influences the spending patterns of the consumers.
•
Lifestyle: It is a person’s pattern of living in the world as expressed in activities, interests and opinions
•
Personality and self-concept: Personality is a set of distinguishing human psychological traits.
Psychological Factors •
•
Motivation •
Needs provide motives for consumer behavior
•
Motivation research
•
Maslow’s hierarchy of needs
Perception •
•
Learning •
•
Selective attention, selective distortion, selective retention Drives, stimuli, cues, responses and reinforcement
Beliefs and attitudes
Babasabpatilfreepptmba.com
Page 9
Brand Preferences of Mango Soft Drinks among Consumers
BRANDS A brand is defined as “name, term, sign, symbol, or design, or a combination of them intended to identify the goods or services of one seller or group of sellers and to differentiate them from those competitors.” Thus a brand adds dimensions that differentiate it in some way from products or services designed to satisfy the same need. These differences may be functional, rational, or tangible- related to product performance of the brand. Brands are powerful assets that must be carefully developed / managed. Brands with strong equity have many competitive advantages:
High consumer awareness
Strong brand loyalty
Helps when introducing new products
Less susceptible to price competition
THE ROLE OF BRANDS 1. Brands identify the source or maker of a product and allow consumers to assign responsibility to a particular manufacturer or distributor. 2. They simplify product handling or tracing & organize inventory. 3. They offer legal protection for unique features or aspects of the product. 4. They can signal a certain level of quality so that satisfied buyers can easily choose the product again.
Babasabpatilfreepptmba.com
Page 10
Brand Preferences of Mango Soft Drinks among Consumers
Brand Equity is the added value endowed to products or services. This value may be reflected in how consumers think, feel and act with respect to the brand, as well as the prices, market share, and profitability that brand commands for the firm. Brand equity is an important intangible asset that has psychological and financial value to the firm. Good brand names suggest something about the product or its benefits. They are easy to say, recognize and remember. They are distinctive and are extendable. They translate well into other languages. They can be registered and legally protected.
Babasabpatilfreepptmba.com
Page 11
Brand Preferences of Mango Soft Drinks among Consumers
COMPETITIVE ADVANTAGE & STRATEGIES Competitive Advantage is defined an advantage over competitors gained by offering consumers greater value than competitors offer. Competitive Analysis is defined as the process of identifying key competitors; assessing their objectives, strategies, strengths and weaknesses, and reaction patterns; and selecting which competitors to attack or avoid. Competitive strategies for Market Leader •
•
•
Expanding the total demand •
Finding new users
•
Discovering and promoting new product uses
•
Encouraging greater product usage
Protecting market share •
Many considerations
•
Continuous innovation
Expanding market share •
Profitability rises with market share
Competitive strategies for Market Challenger •
Challenge the market leader •
High-risk but high-gain
•
Sustainable competitive advantage over the leader is key to success
•
Challenge firms of the same size, smaller size or challenge regional or local firms
•
Full frontal vs. indirect attacks
Babasabpatilfreepptmba.com
Page 12
Brand Preferences of Mango Soft Drinks among Consumers
Competitive strategies for Market Follower •
Follow the market leader
Focus is on improving profit instead of market share
Many advantages: Learn from the market leader’s experience Copy or improve on the leader’s offerings Strong profitability
Competitive strategies for Market Nicher •
Serving market niches means targeting subsegments
•
Good strategy for small firms with limited resources
•
Offers high margins
Specialization by market, customer, product, or marketing mix lines is the key
Babasabpatilfreepptmba.com
Page 13
Brand Preferences of Mango Soft Drinks among Consumers
RESEARCH WORK
Babasabpatilfreepptmba.com
Page 14
Brand Preferences of Mango Soft Drinks among Consumers
ABOUT THE PROBLEM Pepsi & Coca Cola are the fiercest competitors in almost all the dimensions of the global soft drink market. Each company has at least one product in every flavour against its competitor. There fore, Nectar Beverages Pvt Ltd, Dharwad (franchisee of Pepsi) was interested to know the consumer preferences of the mango soft drinks in the urban markets of Hubli & Dharwad. This encouraged me to undertake a comparative analysis of Slice & Maaza. These are the only two prominent bottled mango soft drinks in the above said markets.
ABOUT PEPSI
Soft drinks have been described as making the “most extensive dietary impact of foreign corporations in the developed world”. They are usually priced just within the reach of the poorest in these countries and may represent, via their glossily advertised images, symbols of an enviable western lifestyle. A Mexican priest wrote, in 1974, that Mexican villagers believed soft drinks should be consumed every day, leading to lower consumption of natural products such as fruit. Some families were even seen to be selling their natural products in order to buy soft drinks. The spread of Coca-Cola and PepsiCo operation is truly global. Coca-Cola distributes its branded Products in over 155 countries. In Mexico, Coca-Cola and PepsiCo control 77% of the soft drinks market. Cola drinks usually contain about 10% sugars – some 13 lumps in a 330ml Can. Ribena contains approximately 15% sugars – 15 lumps in a 250ml carton.
Babasabpatilfreepptmba.com
Page 15
Brand Preferences of Mango Soft Drinks among Consumers
These proportion seem the norm for most soft drinks (except of course the ‘diet’ varieties).
Babasabpatilfreepptmba.com
Page 16
Brand Preferences of Mango Soft Drinks among Consumers
CORPORATE VIEW PepsiCo is a world leader in convenient foods and beverages, with revenues of about $27 billion and over 1 43,000 employees. The company consists of the snack businesses of Frito- Lay North America and Frito-Lay International; the beverage businesses of PepsiCola North America, Gatorade/Tropicana North America and PepsiCo Beverages International; and Quaker Food North America, manufacturer and marketer of ready-toeat cereals and other food products. PepsiCo brands are available in nearly 200 countries and territories. It also has a joint venture in India and bottling plants in China. Many of PepsiCo’s brand names are over 100-years –old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. PepsiCo’s success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of our people. Our overriding objective is to increase the value of our shareholders’ investment through integrated operating, investing and financing activities. Our strategy is to concentrate our resources on growing our businesses, both through internal growth and carefully selected acquisitions. Our strategy is continually fine-tuned to address the opportunities and risks of the global marketplace. The corporation’s success reflects our continuing commitment to growth and a focus on those businesses where we can drive our own growth and create opportunities.
Babasabpatilfreepptmba.com
Page 17
Brand Preferences of Mango Soft Drinks among Consumers
PEPSI’s MISSION “Our mission is to be the world’s premier consumer products company focused on convenience foods & beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in every thing we do, we strive for honesty, fairness and integrity”.
PepsiCo’s overall mission is to increase the value of their share holders’ investment. They do this through sales growth, cost controls and wise investment of resources. They believe their commercial success depends upon offering quality and value to their consumers & costumers; providing products
that
are
safe,
wholesome,
economically
efficient
and
environmentally sound; And providing a fair return to their investors while adhering to the highest standards of integrity.
Babasabpatilfreepptmba.com
Page 18
Brand Preferences of Mango Soft Drinks among Consumers
ENVIRONMENTAL COMMITMENT FROM PEPSI
Message form the Chairman PepsiCo is defined by its relationships including our relationship with environment. We view our environmental responsibility as covering all areas of our business. Each of our divisions and facilities is empowered to find solutions to its unique environmental challenges. Each of our employees is encourages to act as an environmental steward. We, at PepsiCo are proud of our environmental record and our relationship with the environment. As any successful relationship, we’re working continually to improve it.
Steven S. Reinemund Chairman & Chief Executive Officer
Babasabpatilfreepptmba.com
Page 19
Brand Preferences of Mango Soft Drinks among Consumers
SHAREHOLDERS PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in the United States. The company is also listed on the Amsterdam, Chicago, Swiss and Tokyo stock exchanges. PepsiCo has consistently paid cash dividends since the corporation was founded. CORPORATE CITIZENSHIP PepsiCo believes that as a corporate citizen, it has a responsibility to contribute to the quality of life in communities. This Philosophy is put into action through support of social agencies, projects and programs. The scope of this support is extensive -- ranging from sponsorship of local programs and support of employee volunteer activities, to contribution of time, talent and funds to programs of national impact. Each division is responsible for its own giving program. Corporate giving is focused on giving where PepsiCo employees volunteer. PEPSICO HEADQUARTERS PepsiCo World Headquarters is located in Purchases, New York, approximately 45 minutes from New York City. The building occupies 10 acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a world acclaimed sculpture collection in a garden setting.
Babasabpatilfreepptmba.com
Page 20
Brand Preferences of Mango Soft Drinks among Consumers
BEVERAGES Caleb Bradham, a New Bern, N.C druggist who first formulated Pepsi-Cola, founded PepsiCo’s beverage business at the turn of the century. Today consumers spend about $28 billion on Pepsi-Cola beverages. Brand Pepsi and other Pepsi-Cola products including Diet Pepsi, Mountain Dew slice and Mug brands account for nearly one-third of total soft drinks sales in the United States, a consumer market totaling about $54 billion. In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest selling ready –to-drink tea brand in the United States. Outside the United States, Pepsi-Cola Company’s soft drink operators include the business of seven –up International. Pepsi-Cola beverages are available in more than 190 countries and territories. Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola bottlers and food service customers. This includes some of the world’s best-loved and most recognized advertising. New advertising and exciting promotions keep Pepsi-Cola brands young. The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers. The company also provides fountain products.
Babasabpatilfreepptmba.com
Page 21
Brand Preferences of Mango Soft Drinks among Consumers
HONORS OF PEPSI COMPANY IN 2005 1. 2005 Hispanic Magazine names PepsiCo one of the “100 Companies Providing the Most Opportunity for Hispanics”. 2. PepsiCo included on Div50 list of the Top 50 Corporate Buyers of Diversity Products and Service in the U.S. awarded by Diversity Business .com 3. Fortune names PepsiCo # 1 in Consumer Food Products in its survey of America’s Most Admired Companies. 4. The National Association for Female Executives (NAFE) names PepsiCo among the “NAFE 2005 Top 30 Companies for Executives Women”. 5. Governance Metrics International released its semiannual corporate governance ratings for 3,200 companies. PepsiCo scored 10 out of 10. Only three companies in the US have achieved the highest overall score for four consecutive semiannual reporting periods – PepsiCo, Colgate-Palmolive and Praxair. 6. California Waste Reduction Awards Program (WRAP) , Frito-lay’s Modesto plant is a Top-10 WRAP of the Year winner for 2004. 7. Second Annual CPG & Retail Excellence Awards names PepsiCo Manufacturer Innovation of the Year. 8. Pepsi’s “Cindy Crawford” Commercial Most Viewed 2005 Super Bowl Ad on the America Online Service. 9. Institutional Investor Magazine Ranks America’s Best CFOs Under Consumer, Beverages, Indra Nooyi, PepsiCo. 10. Global 100 Most Sustainable Corporations in the World, 2005 List Innovest Strategic Value Advisors Inc. lists PepsiCo. Barrons, “Top 30 CEOs” names PepsiCo’s Steven S Reinemund.
Babasabpatilfreepptmba.com
Page 22
Brand Preferences of Mango Soft Drinks among Consumers
MILESTONES OF SOFTDRINKS INDUSTRY
1798 The term “soda water” first coined. 1810 1st U.S. Patent issued for the manufacture of imitation mineral waters. 1819 The “soda fountain” patented by Samuel Fahnestock. 1835 The first bottle soda water in the U.S. 1850 A manual hand & foot operated filling & corking device, first used for bottling soda water. 1850 Ginger ale created in Ireland. 1861 The term “pop” first coined. 1874 The first ice-cream soda sold. 1875 Root beer mass produced for public sale. 1881 The first cola-flavored beverage introduced. 1885 Charles Aderton invented “Dr Pepper” in Waco, Texas. 1886 Dr. John S. Pemberton invented “Coca-Cola” in Atlanta, Georgia.
Babasabpatilfreepptmba.com
Page 23
Brand Preferences of Mango Soft Drinks among Consumers
1892 William Painter invented the crown bottle cap. 1898 “Pepsi-Cola” is invented by Caleb Brandham. 1899 The first patent issued for a glass blowing machine , used to produce Glass bottles. 1913 Gas motored trucks replaced horse drawn carriages as delivery
vehicles.
1919 The American Bottlers of Carbonated Beverages formed. 1920 The U.S. Census reported that more than 5,000 bottlers now exist. 1920’s The first automatic vending machine dispensed sodas into cups. 1923 Six-pack soft drinks cartons called “Home-Packs” created. 1929 The Howdy Company debuted its new drink “Bib-Label Lithiated Lemon-Lime Sodas” later called “7Up”. Invented by Charles Leiper Grigg. 1934 Applied color labels first used on sort drink bottles , the coloring was Baked on the face of the bottle. 1952 The first diet soft drink sold called the “No-Cal Beverage” a ginger ale sold by Kirsch. 1957 The first aluminum cans used.
Babasabpatilfreepptmba.com
Page 24
Brand Preferences of Mango Soft Drinks among Consumers
1959 The first diet cola sold. 1962 The pull-ring tab first marketed by the Pittsburgh Brewing Company of Pittsburgh , PA. The pull-ring tab was invented by Alcoa. 1963 The Schlitz Brewing Company introduced the “Pop Top” beer can to the nation in March, invented by Ermal Fraze of Kettering , Ohio. 1964 Soft drinks in cans dispensed from vending machines. 1965 The reseal able top invented. 1970 Plastic bottles are used for soft drinks. 1973 The PET (Polyethylene Terephthalate) bottle created. 1974 The stay-on tab invented . Introduced by the Fall City Brewing Company of Louisville, KY. 1979 Mello Yello soft drink is introduced by the Coca Cola Company as Competition against Mountain Dew. 1980 The “talking” vending machine invented .
Babasabpatilfreepptmba.com
Page 25
Brand Preferences of Mango Soft Drinks among Consumers
ABOUT NECTAR BEVERAGES PVT LTD, DHARWAD Nectar Beverages Pvt Ltd started in the year 1984 by Late Shri Modhubab Timblo, a prominent industrialist & entrepreneur of Goa. It belongs to Fomento Group, one of the recognized business houses of Goa. Nectar Beverages is headed by Mr Prashant Timblo, son of Late Shri Modhubab Timblo. Earlier it was the franchisee of Parle Products. Then in the year 1990 it became the franchisee of Coca Cola. Later in the year 1997 it became the franchisee of Pepsi Foods Pvt Ltd. Thus Nectar Beverages Pvt Ltd started producing Pepsi range of products viz Pepsi, Mirinda (Orange), Mirinda (Lemon), 7 UP, Slice, Everess Soda & Teem Soda. Through out the country there are 50 franchisees of Pepsi. The main office of Pepsi is situated in Delhi. The sales and marketing function of Nectar Beverages Pvt Ltd is carried out by its sister concern M/s Mahakoshal Beverages Pvt Ltd, Dharwad. Nectar Beverages Pvt Ltd operates 13 districts from Bijapur to Hassan and there are 75 distributors. The capacity of this company is 600 bottles per minute. The annual sales target is 18 lakh pieces per year.
Babasabpatilfreepptmba.com
Page 26
Brand Preferences of Mango Soft Drinks among Consumers
NECTAR BEVERAGES PVT LTD’s MANAGEMENT MISSION “We are committed to produce and deliver top quality products to our consumers” 1. To achieve this every batch of incoming raw materials are checked for quality by our Quality Assurance Dept. 2. We use only high grade sugar. 3. Apart from this, online & final product checks are carried out at regular intervals. 4. We purchase raw materials only from approved sources, approved by independent laboratories of international repute. 5. The entire range of equipments is made out of superior grade Stainless steel material. 6. We give attention to a) Personnel Hygiene & Sanitation. b) House Keeping c) Good Manufacturing Process. 7. Special attention is also given to keep the factory surrounding clean & green by growing lawn.
Babasabpatilfreepptmba.com
Page 27
Brand Preferences of Mango Soft Drinks among Consumers
Organisation Chart of Nectar Beverages Pvt Ltd, Dharwad Resident Director (CEO)
General Manager (Plant)
Manager (HR)
Manager (Finance)
Assistant Manager (A/c)
Executive Accountant
Sr. Executive Accountant
Shipping (Executive)
Store (Executive)
Executive (Q.C.)
Babasabpatilfreepptmba.com
Executive HR
Manager (QC)
Chemist
Manager (QC)
Assistant
Manager (Production)
Manager (Sales & Mktg /TDM)
Executive Administrator
Clerk
CE/Executive Marketing
Executive (Production)
Page 28
Executive General
Security
Area Sales Manager
Brand Preferences of Mango Soft Drinks among Consumers
MANUFACTURING PROCESS Manufacturing process comprises of four main processes as follows: 1. Water treatment process 2. Syrup making process 3. Bottle washing process 4. Mix Processing & Filling process The functions of the process are as follows 1. Water Treatment Process: Water Treatment may be Batch Treatment or Continious Treatment. The method employed in this company is Batch Treatment. Raw water is collected in tanks and dosage for chemical treatment is given according to the characteristics of raw water. The source of raw water is borewell. Chemicals used for the water treatment are Lime, Bleaching Powder and Ferrow sulphate. Lime is added to remove alkaline compounds from water to an acceptable level and to reduce temporary hardness. Bleaching Powder is added for cholorination. Ferrow sulphate is added for coagulation and flocculation i.e. to remove the suspended solids and insoluble materials created by cholorination and alkalinity reduction is removed. 2. Syrup Making Process: Simple syrup is prepared from granulated sugar and treated water. Finished syrup is prepared by adding concentrated ingredients to simple. The finished syrup in then combined with water and carbon dioxide to prepare finished beverage. Preparation of finished syrup is a critical step and must be properly controlled. Machineries & Equipments used in syrup preparation are made of stainless steel and are of acceptable design.
Babasabpatilfreepptmba.com
Page 29
Brand Preferences of Mango Soft Drinks among Consumers
3. Bottle Washing Process: The bottle washers clean and sanitize returnable bottles that have been brought back from the trade. The empty bottles are sent into a jet washer, which sprays the bottles both inside and outside with washing solution from a series of jets. This removes foreign matters and left overs drinks from used bottles. A typical wash cycle is as follows: i). Hot soft water rinse. ii). Low strength chemical solution spray. iii). High strength rinse. iv). Low strength chemical solution spray. v). Prefinal and final soft water rinse. This cycle completes the bottle washing process and renders the bottles perfectly clean and disinfected. 4. Mix Processing & Filling process: The production process is the central point in plant operation. Ingredients such as water, finished syrup and carbon dioxide are combined and filled into sanitary containers closed and packed. In mix processing, the beverage is prepared. The mix processor combines the finished syrup, treated water & carbon dioxide in the correct proportion and transfers the blended final beverage to the filler. The filler accepts the clean bottles container and fills it with beverage to the correct level automatically transferring it to the crowner of closure.
Babasabpatilfreepptmba.com
Page 30
Brand Preferences of Mango Soft Drinks among Consumers
SALES & MARKETING DEPARTMENT: Marketing dept is looked after by Manager (Sales & Marketing). Retailers are supported by bottle coolers, sales incentives, advertisement materials, glow sign boards and various sales schemes. Various sales linked promotion offers are also conducted by company to increase sales for both retailers and consumers. Few of such offers are Product premiums, Gifts and Sweep skates, Point of purchase, Shelf space buying, Commissions against displays. Nectar Beverages also sponsors some of the local events. The Sales arm is entrusted with the responsibility of looking after the day to day physical sales of the company. It also looks after the appointment of distributors in the market. Every year the company conducts survey known as Trading Survey to know efficiency of the trading activity of the company. This survey is conducted by Indian Market Research Bureau. Company makes the Operations Planning in the month of October/ November of every year. Targets are set depending upon industry size, volume of the previous year, market potential, new product plan etc. Looking at the sales volume of the city or town and if the area is dry i.e. where Pepsi has not reached, distributors are allowed to invest.
Babasabpatilfreepptmba.com
Page 31
Brand Preferences of Mango Soft Drinks among Consumers
RESEARCH METHODOLOGY
TITLE “Brand Preferences of Mango Soft Drinks among consumers, a comparative analysis between Slice & Maaza”. A Study of Hubli & Dharwad Market.
OBJECTIVES OF THE STUDY 1. To study the consumers’ preferences for Mango Soft Drinks. 2. To study the factors influencing the purchase of Mango Soft Drinks. 3. To know the consumption occasions & usual places of purchase of the consumers. 4. To study the factors considered by retailers while choosing amongst mango soft drinks 5. To suggest the strategies to Nectar Beverages (Pepsi franchisee)
SCOPE OF STUDY The area selected for this study is the urban markets of Hubli & Dharwad
TARGET RESPONDANTS: 1. Consumers in Hubli & Dharwad in the age group of 18-50 years. 2. Retailers in Hubli & Dharwad who sell Mango Soft Drinks.
Babasabpatilfreepptmba.com
Page 32
Brand Preferences of Mango Soft Drinks among Consumers
SAMPLING UNIT: 1. Individual falling in the age group of 18-50 yrs who consume Mango Soft Drinks. 2. Each retailer outlet who sell Mango Soft Drinks.
SAMPLING METHOD: 1. Individuals selected through Convenience Sampling. 2. Retail outlet selected through Simple Random Sampling.
SAMPLE SIZE: 1. 200 consumers 2. 50 retailers
Babasabpatilfreepptmba.com
Page 33
Brand Preferences of Mango Soft Drinks among Consumers
SOURCES OF DATA: Primary Data: Data collected through questionnaires from the consumers & the retail outlets as well. Secondary Data: Information collected from the company records, the retailers’ records & the company website. TOOLS OF DATA ANALYSIS: Percentage Method
Babasabpatilfreepptmba.com
Page 34
Brand Preferences of Mango Soft Drinks among Consumers
TABULATION & ANALYSIS
Babasabpatilfreepptmba.com
Page 35
Brand Preferences of Mango Soft Drinks among Consumers
ANALYSIS FOR OBJECTIVES 1. Consumers’ preferences for Mango Soft Drinks What consumers usually ask for...?
Of the 50 retailers, 32 (64%) say that consumers ask for Slice at their outlets & 18 retailers say that consumers ask for Maaza.
36%
64%
Slice (32)
Maaza (18)
Consumers' preferences of Non Carbonated Beverages
43%
Slice 57%
Mazaa
57% of consumers prefer Slice as compared to 43 % of Maaza.
Babasabpatilfreepptmba.com
Page 36
Brand Preferences of Mango Soft Drinks among Consumers
2. Factors influencing the purchase of Mango Soft Drinks by consumers.
Purchase is influenced... Conscious about health Brand name Dislike for carbonated drinks Retailers Displays Avlblty Friends & Family Taste Offers Advts
0
20
40
60
80
100
120
No of respondants
Slice
Slice Advts Offers Taste Friends & Family Avlblty Displays Retailers Dislike for carbonated drinks Brand name Conscious about health
Maaza
Maaza 50 4 90 92 56 26 52 40 22 44
12 4 98 42 56 26 42 58 46 36
Taste is a factor influencing the purchase of more number of Maaza consumers. In addition, the brand name Maaza itself is the influencer for the purchase. More of Slice consumers are
Babasabpatilfreepptmba.com
Page 37
Brand Preferences of Mango Soft Drinks among Consumers
influenced by Advertisements, Retailers, Family & Friends and are more Conscious about health.
Babasabpatilfreepptmba.com
Page 38
Brand Preferences of Mango Soft Drinks among Consumers
3. Consumption occasions & usual places of purchase of the consumers.
No of responses
Consumptions occasions 100 90 80 70 60 50 40 30 20 10 0
Parties & Get togathers With breakfast To beat the heat Drink w hile gossiping To get relaxed
Slice
Parties & Get togethers With breakfast To beat the heat Drink while gossiping To get relaxed
Maaza
Slice 94 12 32 36 66
Maaza 54 34 20 46 70
For more of the Slice consumers, ‘Parties & Get together’ remains the prime occasion of consumption. While for the Maaza consumers ‘To get relaxed’ is the major occasion. But strangely Slice has taken a bigger chunk when it comes to Parties & Get together occasions. Most of times bulk buyers who buy occasionally are reached & served in time by Pepsi franchisee itself.
Babasabpatilfreepptmba.com
Page 39
Brand Preferences of Mango Soft Drinks among Consumers
Usual places of purchase 80 No of responses
70 60
Cinema Halls
50
Restaurants
40
Juice Centres
30
Bakeries
20
Groceries
10 0 Slice
Cinema Halls Restaurants Juice Centres Bakeries Groceries
Maaza
Slice 74 72 58 46 36
Maaza 70 70 46 44 36
Of the two brands, Slice is purchased more in Cinema Halls, Restaurants & Juice Centers. This shows that Slice is widely available in these retail outlets. As per the survey, the Pepsi products are available in more places than the Coca Cola products. The Pepsi franchisee being situated in the out skirts of Dharwad is more reachable to the market of Hubli & Dharwad.
Babasabpatilfreepptmba.com
Page 40
Brand Preferences of Mango Soft Drinks among Consumers
4. Factors considered by retailers while choosing amongst mango soft drinks.
Retailers prefer to sell...
20%
48% Slice (24)
32%
Maaza (16) Both (10)
Factors considered by retailers selling either Slice or Maaza 30 No of responses
25 Credit Terms
20
Timely Product Supply
15
Better Sales Margin
10
Supply of coolers/racks
5 0 Slice
Credit Terms Timely Product Supply Better Sales Margin Supply of coolers/racks
Maaza
Slice 24 20 22 18
Maaza 12 12 14 6
For more number of Slice sellers, Credit Terms & Sales Margin are the factors considered. No of Slice sellers in Hubli & Dharwad are more as compared to Maaza. There fore the number of responses is more for Slice. Babasabpatilfreepptmba.com
Page 41
Brand Preferences of Mango Soft Drinks among Consumers
12 10 8
Maaza
6 4 2 0
Slice 4 8 4 2
ra ck s co ol er s/
Su pp ly
of
al es
up pl y Be tte rS
Ti m
el y
Pr od uc tS
Te rm Cr ed it
Credit Terms Timely Product Supply Better Sales Margin Supply of coolers / racks
M ar gi n
Slice
s
No of responses
Factors considered by retailers selling both the brands
Maaza 6 2 6 8
For the sellers who sell both the brands, more vote for Slice’s timely product supply. Similarly Maaza gets more votes for Supply of coolers & racks.
Babasabpatilfreepptmba.com
Page 42
Brand Preferences of Mango Soft Drinks among Consumers
OTHER INFORMATION ABOUT CONSUMERS & RETAILERS
Consumers' brand recall... Slice
52%
Maaza
48%
Consumers’ Brand Recall Slice 52% Maaza 48% Total 100% 52% of the consumer respondents recalled SLICE, when asked about the brand of Mango Soft Drink.
Babasabpatilfreepptmba.com
Page 43
Brand Preferences of Mango Soft Drinks among Consumers
Proportion of consumers who prefer Carbonated & Non Carbonated Drinks
43% 57%
Carbonated
Non Carbonated
Proportion of consumers of carbonated & Non Carbonated Carbonated
57%
Non Carbonated
43%
Of the total of 200 respondents, 57% of consumers prefer Carbonated Soft Drinks. Male consumers in the age group of 18-30 years are more inclined to carbonated beverages. Males above 30 years & the female consumers do not prefer carbonated beverages.
Babasabpatilfreepptmba.com
Page 44
Brand Preferences of Mango Soft Drinks among Consumers
Consumers' frequency of consumptiom (200 respondants) 7%
10%
Daily
31%
Weekly Monthly Occasionally 52%
More than 50% of the consumers consume mango soft drinks weekly followed by consumers who consume monthly.
Babasabpatilfreepptmba.com
Page 45
Brand Preferences of Mango Soft Drinks among Consumers
Ratings given by Slice consumers to the mentioned attributes
No of respondants
120 100 80
Excellent
60
Best
40
Better Good
20
Fair
0 Avlblty
Advts
Offrs
Taste
Price
Ratings given by Slice consumers to the below attributes Fair Good Better Best Excellent Availability 0 38 30 24 12 Advts 54 22 8 8 12 Offrs 72 12 10 6 4 Taste 0 18 34 16 36 Price 12 38 38 4 12
Contd‌
Babasabpatilfreepptmba.com
Page 46
Brand Preferences of Mango Soft Drinks among Consumers
Ratings given by Maaza consumers to the mentioned attributes
No of respondants
120 100 80
Excellent
60
Best
40
Better Good
20
Fair
0 Avlblty
Advts
Offrs
Taste
Price
Ratings given by Maaza consumers to the below attributes Fair Good Better Best Excellent Availability 0 48 32 16 0 Advts 52 40 4 0 0 Offrs 74 18 4 0 0 Taste 0 12 20 28 36 Price 18 38 22 10 8 Consumers of Maaza are more pleased by its sweetness, mango taste of the juice, Slice, on the other hand is less sweet and thick. Among the consumers, the brand name ‘MAAZA’ is more familiar with them. The reason being Maaza is older than Slice in the Indian soft drinks market. Offers have not made much difference to the brands, because both the brands offer premium product at same price as promotional offers.
Babasabpatilfreepptmba.com
Page 47
Brand Preferences of Mango Soft Drinks among Consumers
Qty of bottles usually purchased 80
70
No of responses
70
64
60
60 50
Slice
40 30 20
Maaza 14 16
10
0
0
200ml
250ml
500ml
Most of the consumers usually go for 250ml bottles of either brand of Mango Soft Drinks. Maaza is not available in 1ltr packs and not in 500ml packs.
Babasabpatilfreepptmba.com
Page 48
Brand Preferences of Mango Soft Drinks among Consumers
Types of retailers chosen for study
8% 12%
32%
Restaurants (16) Bakeries (10) Juice Centres (8)
12%
Grocery Stores (6) Cinema Halls (6) Others (4)
16%
1 2 3 4 5 6
Restaurants (16) Bakeries (10) Juice Centres (8) Grocery Stores (6) Cinema Halls (6) Others (4)
Babasabpatilfreepptmba.com
20%
16% 10% 8% 6% 6% 4%
Page 49
Brand Preferences of Mango Soft Drinks among Consumers
Do consumers accept other brands, if theirs' is not available 8%
92% Yes
No
92% of retailers say that consumers accept other brands, if the brand they have asked is not available.
Babasabpatilfreepptmba.com
Page 50
Brand Preferences of Mango Soft Drinks among Consumers
FINDINGS
Babasabpatilfreepptmba.com
Page 51
Brand Preferences of Mango Soft Drinks among Consumers
FINDINGS 1. Of the 50 retailers, 32 (64%) say that consumers ask for Slice at their outlets & 18 retailers say that consumers ask for Maaza. 2. 57% of consumers prefer Slice as compared to 43 % of Maaza. 3. Taste is a factor influencing the purchase of more number of Maaza consumers. In addition, the brand name Maaza itself is the influencer for the purchase. More of Slice consumers are influenced by Advertisements, Retailers, and Family & Friends and are more Conscious about health. 4. For more of the Slice consumers, ‘Parties & Get together’ remains the prime occasion of consumption. While for the Maaza consumers ‘To get relaxed’ is the major occasion. But strangely Slice has taken a bigger chunk when it comes to Parties & Get together occasions. Most of times bulk buyers who buy occasionally are reached & served in time by Pepsi franchisee itself. 5. Of the two brands, Slice is purchased more in Cinema Halls, Restaurants & Juice Centers. This shows that Slice is widely available in these retail outlets. As per the survey, the Pepsi products are available in more places than the Coca Cola products. The Pepsi franchisee being situated in the out skirts of Dharwad is more reachable to the market of Hubli & Dharwad. 6. For more number of Slice sellers, Credit Terms & Sales Margin are the factors considered. No of Slice sellers in Hubli & Dharwad are more as compared to Maaza. There fore the number of responses is more for Slice. 7. For the sellers who sell both the brands, more vote for Slice’s timely product supply. Similarly Maaza gets more votes for Supply of coolers & racks. 8. 52% of the consumer respondents recalled SLICE, when asked about the brand of Mango Soft Drink.
Babasabpatilfreepptmba.com
Page 52
Brand Preferences of Mango Soft Drinks among Consumers
9. Of the total of 200 respondents, 57% of consumers prefer Carbonated Soft Drinks. Male consumers in the age group of 18-30 years are more inclined to carbonated beverages. Males above 30 years & the female consumers do not prefer carbonated beverages. 10. More than 50% of the consumers consume mango soft drinks weekly followed by consumers who consume monthly. 11. Consumers of Maaza are more pleased by its sweetness, mango taste of the juice, Slice, on the other hand is less sweet and thick. Among the consumers, the brand name ‘MAAZA’ is more familiar with them. The reason being Maaza is older than Slice in the Indian soft drinks market. Offers have not made much difference to the brands, because both the brands offer premium product at same price as promotional offers. 12. Most of the consumers usually go for 250ml bottles of either brand of Mango Soft Drinks. Maaza is not available in 1ltr packs and not in 500ml packs. 13. 92% of retailers say that consumers accept other brands, if the brand they have asked is not available.
Babasabpatilfreepptmba.com
Page 53
Brand Preferences of Mango Soft Drinks among Consumers
SUGGESTIONS & CONCLUSIONS
Babasabpatilfreepptmba.com
Page 54
Brand Preferences of Mango Soft Drinks among Consumers
SUGGESTIONS 1. Provide coolers & racks to the retailers so as to encourage them to sale the products 2. Provide adequate & timely service for the existing coolers. 3. Encourage the retailers by giving them sales incentives on achieving the sales targets. 4. Negotiate with retailers for proper credit limits 5. Do not cut the product supply if the retailers default the payments. 6. Provide the retailers with enough of sales schemes.
Babasabpatilfreepptmba.com
Page 55
Brand Preferences of Mango Soft Drinks among Consumers
CONCLUSIONS 1. 64% of retailers say that consumers usually ask for Slice at their outlets. 2. 57% of the non carbonated beverages consumers prefer Slice. 3. Taste is a factor influencing the purchase of more number of Maaza consumers. In addition, the brand name Maaza itself is the influencer for the purchase. 4. More of Slice consumers are influenced by Advertisements, Retailers, Family & Friends and are more Conscious about health. 5. For more of the Slice consumers, ‘Parties & Get together’ remains the prime occasion of consumption. Most of times bulk buyers who buy occasionally are reached & served in time by Pepsi franchisee itself. 6. Slice is purchased more in Cinema Halls, Restaurants & Juice Centers. This shows that Slice is widely available in these retail outlets. 7. Credit Terms & Sales Margin are the factors considered by more number of Slice sellers. 8. As per analysis, 52% of the consumer respondents have recalled SLICE. 9. 43% of consumers prefer Non Carbonated Soft Drinks. Most of the consumers are males of the age group 30-55years and females of age group 18-45. 10. Most of the consumers usually go for 250ml bottles. 11. Consumers who consume mango soft drinks weekly are more than 50%. 12. Mango soft drinks are usually consumed by females & college going males. 13. Slice is more preferred to be sold by retailers as the price is less as compared to Maaza. 14. As per retailers the consumers have the tendency to go for other brand, if the brand of their choice is not available.
Babasabpatilfreepptmba.com
Page 56
Brand Preferences of Mango Soft Drinks among Consumers
BIBILOGRAPHY 1. MARKETING RESEARCH by DONALD S. TULL & DEL I.HAWKINS 2. MARKETING MANAGEMENT by PHILIP KOTLER 3. CONSUMER BEHAVIOUR by SCHIFFMAN & KANUK 4. CORPORATE WEBSITE: http://www.pepsico.com
Babasabpatilfreepptmba.com
Page 57
Brand Preferences of Mango Soft Drinks among Consumers
ANNEXURE
Babasabpatilfreepptmba.com
Page 58
Brand Preferences of Mango Soft Drinks among Consumers
Questionnaire to assess the Brand Preferences of Mango Soft Drinks Dear Respondent,
Name: Address: Age (years):
18-25
26-35
36-45
46 & Above
1. Which brand name comes to your mind when you ask for a Mango soft drink? _______________ 2. Do you consume soft drinks? Yes
No
3. If YES Carbonated (Flavoured)
Non Carbonated (Juice)
4. If NON CARBONATED, then Slice
Maaza
5. Which size do you usually go for? 200ml
250ml
500ml
Tetra pack
6. How often do you consume Mango soft drink? Daily
Babasabpatilfreepptmba.com
Weekly
Monthly
Occasionally
Page 59
Brand Preferences of Mango Soft Drinks among Consumers
7. What influences your purchase of a particular brand? Advertisement
Offers
Taste
Friends/ Family
Availability
The way it is displayed
Retailer
Dislike for carbonated drinks
Brand name itself
Conscious about health
8. In which of the following occasions you prefer the soft drink. Parties/ Get together
As a drink with breakfast in restaurant
To beat the heat
Just as a drink while chit chatting
To get relaxed 9. From where do you purchase the soft drinks? Cinema Hall
Restaurant
Juice centers
Bakeries
Grocery stores 10. Rate the following attributes about your brand Fair
Good
Better
Best
Excellent
Availability Advertisement Offers Taste Price Thank You for your co operation
Babasabpatilfreepptmba.com
Page 60
Brand Preferences of Mango Soft Drinks among Consumers
Questionnaire to assess the Brand Preferences of Mango Soft Drinks Dear Respondent,
Name of the outlet: Address: Contact Person:
Type(R/C/K): Phone No:
1. Which Mango soft drink do consumers usually ask for? __________________ 2. Do consumers ask for other brand if their choice is not available? Yes
No
3. Which of the below brands do you usually prefer to sell? Slice
Maaza
Both
4. If your answer for Q3 is ‘Slice/Maaza’ , then state the reasons Credit terms Timely Product Supply Better Sales Margin Supply of coolers/racks 5. If your answer for Q3 is ‘Both’. then Slice
Maaza
Credit terms Timely product supply Better sales margin Supply of coolers/ racks
Babasabpatilfreepptmba.com
Page 61
Brand Preferences of Mango Soft Drinks among Consumers
6. Do the consumers purchase the product which you have, if their choice is not available? Yes
No
7. Do you have any suggestions for the improvement of the brands? a. _____________________________________________ b. _____________________________________________ c. _____________________________________________ Thank you for your co operation
Babasabpatilfreepptmba.com
Page 62