A Market Survey Report

on

“CUSTOMER PREFERENCE TOWARDS PEPSI” Submitted To:

COLLEGE OF MANAGEMENT AND COMPUTER APPLICATION, MORADABAD

In Partial Fulfillment of the Requirement of the Degree of Bachelor of Business Administration (BBA)

SESSION: 2009-2012

College of Management & Computer ApplicationsTEERTHANKER MAHAVEER UNIVERSITY

DELHI ROAD, MORADABAD

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Project Guide:Mr. Avinash rajkumar

Project Incharge: Mr. Avinash Raj Kumar Mr. Abhinav Shrivastav

(Course Co-ordinator, B.B.A.)Submitted By:KRISHAN KANHAIYA MISHRA

Roll No. : R0912011146B.B.A. V Semester

CERTIFICATE

This is to certify that Mr./Ms.

_________________________________________ student of BBA 5TH

Semester (2009-12) at TMU has completed his/her dissertation under the

guidance of ______________________________________________________

on the topic “ CUSTOMER PREFENCE TOWARDS PEPSI ”

The dissertation is a part of BBA Vth semester curriculum of Teerthanker

Mahaveer University, Moradabad.

The student has genuinely carried out the project work. He/She has made

sincere efforts in the completion of the dissertation.

Project Guide

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KRISHAN KANHAIYA MISHRA

Mr. AVINASH RAJ KUMAR

AVINASH RAJ KUMAR

STUDENT DECLARATION

I KRISHAN KANHAIYA MISHRA hereby declare that the research work

presented in this project report entitled “” for the fulfillment of the award of

Bachelor of Business Administration from “CUSTOMER PREFERENCE

TOWARDS PEPSI” Teerthanker Mahaveer University, Moradabad is based

on my work is based on my work during the Training”. The dissertation

embodies the result of original work and studies carried out by me and the

contents of the project do not form the basis for the award of any other degree to

me or to anybody else.

KRISHAN KANHAIYA MISHRA

BBA Vth SEM

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ACKNOWLEDGEMENT

It gives me immense pleasure and privilege to acknowledge my

deepest sense of gratitude towards all those who helped me in the

successful execution of this project.

I would like to thanks Chancellor Sir, Sh. Suresh Jain, Group Vice

Chairman Mr. Manish Jain, and Additional Director Dr. Vipin Jain

for their able guidance. I also extend my gratitude towards the H.O.D.

Dr. M.P. Singh and my course coordinator Mr. Abhinav Shrivastav

and Mr. Avinash Raj Kumar who entrusted me for the completion

of this project. I am highly indebted to my project guide Mr. Avinash

raj kumar whose constructive counseling and able guidance helped

me immensely in bringing out this project in the present form. And

lastly the entire faculty member and Mr. Sanjeev Singh (Librarian)

& the entire Lab staff for providing me this opportunity and expose

me to industrial culture.

The acknowledgement would be incomplete without thanking my

family and friend who were a big support throughout.

KRISHAN KANHAIYA MISHRA

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TABLE OF CONTENTS

1. Introduction

2. Objective Of The Study

3. Company profile

4. Scope of The Study

5. Assumption

6. Research Methodology

7. Data Analysis & Interpretation

8. Findings

9. Suggestions And Recommendation

10. Limitation

11. Conclusions

12. Bibliography

13. Annexure

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INTRODUCTIO

N

6

INTRODUCTION

On the partial fulfillment of the B.B.A. degree, I was asked to make an market

survey report on the topic ‘CONSUMER PREFERENCE TOWARD PEPSI’

given by the college and get familiar with the various activities in the market.

Cold-drink Retailing industry in INDIA

Non alcoholic soft drink beverage market can be divided into fruit drink

and soft drink. Soft drinks can be further divided into carbonated and non

carbonated drinks. Colas, lemon and oranges are carbonated drinks while

mango drinks come under non-carbonated drinks.. The soft drinks market till

early 1990’s was in hands of domestic players like Coke, Thumps Up, Limca

etc. But with the opening up of economy and coming of MNC players Pepsi and

Cock the market has totally under their control. Worldwide, Cock is the leader

in carbonated drinks market. In India it is Pepsi, which scores over cock but this

difference is fast decreasing. Pepsi entered Indian market in 1991. Cock re-

entered (after they were thrown out in 1977, by then central government) in

1993.

Pepsi has been targeting the youth and the sales have been doing well by

sticking to this youth segment. Cock on the other hand struggled initially in

establishing itself in the market. In a span of 7 years of its operations in the

country it changed its CEO four times they seem to have started understanding

the pulse of Indian consumers

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Buying Behavior in Soft Drink Industry:

Soft drinks come under the category of products on impulse. This attitude of

impulse buying is slowly changing to occasion-led buying and also to some

extent consumption through home refrigeration particularly in urban areas.

The market is slowly moving from non-alcoholic carbonated drinks to fruit

based drinks and also to plain bottled water due to lower price and ready

availability.

Consumers purchase soft drinks primarily quench thirst therefore people

traveling and not having access to hygienic water reach out for soft drink.

This accounts for a large part of the sales.

Brand awareness plays a crucial rule in purchase decisions.

Availability in the chilled from also plays a crucial role in purchase

decisions. This has made both the companies to push its sales and to increase

its retail distribution by offering Visi cooler to retailers.

Why there is no aversion to consumption of soft drinks buys any age group,

the main consumer of this market are people in the age group of 30 and

below.

Product differentiation is very low, as all the products taste the same. But

brand loyalty is high in the case of kids and people in the age group of 20-30

years.

According to NCAER survey, lower, lower-middle, upper-middle class

people do 91% of the total consumption of soft drinks in the country

• This project report is based on the consumer preferences towards PEPSI in Moradabad area. The sample will collect by using convenience sampling techniques.

• The sample size of the respondents will be 50.

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INTRODUCTION TO COMPANY

Soft drinks by definition are carbonated drinks that are non-alcoholic. Carbonated soft drinks are also referred to as soda, soda pop, pop, or tonic.

1798 The term "soda water" first coined.

1810 First U.S. patent issued for the manufacture of imitation mineral waters.

1819 The "soda fountain" patented by Samuel Fahnestock.

1835 The first bottled soda water in the U.S.

1850 A manual hand & foot operated filling & corking device, first used for bottling soda water.

1851 Ginger ale created in Ireland.

1861 The term "pop" first coined.

1874 The first ice-cream soda sold.

1876 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.

1892 William Painter invented the crown bottle cap.

1898 "Pepsi-Cola" is invented by Caleb Bradham.

1899 The first patent issued for a glass blowing machine, used to produce glass bottles.

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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.

Early 1920's The first automatic vending machines dispensed sodas into cups.

1923 Six-pack soft drink cartons called "Hom-Paks" created.

1929 The Howdy Company debuted its new drink "Bib-Label Lithiated Lemon-Lime Sodas" later called "7 Up". Invented by Charles Leiper Grigg.

1934 Applied color labels first used on soft 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 gingerale sold by Kirsch.

1957 The first aluminum cans used.

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.

1965 Soft drinks in cans dispensed from vending machines.

1965 The resealable top invented.

1966 The American Bottlers of Carbonated Beverages renamed The National Soft Drink Association.

1970 Plastic bottles are used for soft drinks.

1973 The PET (Polyethylene Terephthalate) bottle created.

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1974 The stay-on tab invented. Introduced by the Falls City Brewing Company of Louisville, KY.

1979 Mello Yello soft drink is introduced by the Coca Cola company as competition against Mountain Dew.

1981 The "talking" vending machine invented.

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OBJECTIVE OF

THE STUDY

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Objective of the study

• To analyze the customers preference for PEPSI.

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COMPANY

PROFILE

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Company Profile

As Company Profile: PepsiCo

Jun 1, 2001 - © George E. Banks Jr.

Company Profile: Pepsi co.

PepsiCo is one of the largest companies there is that is engaged in the food, beverage, and snack industries. Their address is 700 Anderson Hill Road, Purchase, N.Y. 10577. Their phone number is 914-253-2000 and their fax number is 914-253-2070. Their stock symbol is PEP and they are listed on the NYSE. Business Summary: PepsiCo, Inc. is engaged in the snack food, soft drink, juice, and fast food franchise businesses. The Company, through its subsidiaries, markets, sells and distributes various snacks in the United States and internationally, manufactures concentrates of Pepsi, Mountain Dew and other brands for sale to franchised bottlers in the United States and international markets and produces, markets, sells and distributes juices under several Tropicana trademarks in the United States and internationally. Pepsi co.’s domestic snack food business is conducted by Frito-Lay North America, and its international snack food business is conducted through Frito-Lay International. The Company's soft drink business operates as the Pepsi-Cola Company and is comprised of two business units, Pepsi-Cola North America (PCNA) and Pepsi-Cola International (PCI). In December 2000, the Company announced an agreement under which a subsidiary of PepsiCo will merge with The Quaker Oats Company, and Quaker will become a wholly owned

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subsidiary of PepsiCo. Quaker is a large worldwide marketer of foods and beverages. It manufactures and markets Gatorade thirst quencher, along with hot cereals; snacks pancake syrups, grain-based, cornmeal, hominy grits and value-added rice products. The proposed merger is subject to certain closing conditions, including approval by shareholders of both companies and regulatory approvals. The transaction is expected to close in the first half of 2001. PepsiCo also operates several food franchises including Pizza Hut, KFC, and Taco Bell.

2.2 ORGANISATIONAL STRUTURE

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H. R .D.Manager

FinanceManager

MarketingManager

GeneralManagerWard

TimeOfficer

Security Officer

StoresOfficer

Marketing Trainee Pilot Salesmen

Area DevelopmentManager

Market DevelopmentManager

VICE PRESIDENT

CHAIRMAN

ProductionManager

PurchasingManager

QualityManager

PlantManager

MANAGING DIRECTOR

Headquartered in Purchase, New York, with Research and Development Headquarters in Valhalla, The Pepsi Cola Company began in 1898 by a Pharmacist and Industrialist Caleb Brad ham, but it only became known as PepsiCo when it merged with Frito Lay in 1965. Until 1997, it also owned KFC, Pizza Hut, and Taco Bell, but these fast-food restaurants were spun off into Tricon Global Restaurants, now Yum! Brands, Inc. PepsiCo purchased Tropicana in 1998 and Quaker Oats in 2001. In December 2005, PepsiCo surpassed Coca-Cola Company in market value for the first time in 112 years since both companies began to compete. Pepsi-Cola, Venezuela

PepsiCo in India

PepsiCo gained entry to India in 1988 by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. Others claim that firstly Pepsi was banned from import in India, in 1970, for having refused to release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards. These controversies are a reminder of "India's sometimes acrimonious relationship with huge multinational companies." Indeed, some argue that PepsiCo and The Coca-Cola Company have "been major targets in part because they are well-known foreign companies that draw plenty of attention."

.Soft drinks market in India

India is one of the top five markets in terms of growth of the soft drinks market. The per capita consumption of soft drinks in the country is estimated to be around 6 bottles per annum in the year 2003. It is very low compared to the corresponding figures in US (600+ bottles per annum). But being one of the

17

fastest growing markets and by the sheer volumes, India is a promising market for soft drinks.

The major players in the soft drinks market in India are PepsiCo and Coca-Cola Co, like elsewhere in the world. Coca-Cola acquired a number of local brands like Limca, Gold Spot and Thums Up when it entered Indian market for the second time. Pepsi Co’s soft drink portfolio also consists of Miranda and 7Up along with Pepsi. The market share of each of the company is more or less the same, though there is a conflict in the estimates quoted by different sources

Chairman and CEO

IndraK.Nooyi

Chairman,

CEO

Massimo.F.d'Amore

CEOPepsiCoAmericas

Beverages

John.C.Compton

CEO,PepsiCo

Americas Foods

Michael D.

White

CEO,PepsiCo

Intl.

&Vice

Chairman,

PepsiCo

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As Company Profile: PepsiCo

Jun 1, 2001 - © George E. Banks Jr.

Company Profile: Pepsi co.

PepsiCo is one of the largest companies there is that is engaged in the food, beverage, and snack industries. Their address is 700 Anderson Hill Road, Purchase, N.Y. 10577. Their phone number is 914-253-2000 and their fax number is 914-253-2070. Their stock symbol is PEP and they are listed on the NYSE. Business Summary: PepsiCo, Inc. is engaged in the snack food, soft drink, juice, and fast food franchise businesses. The Company, through its subsidiaries, markets, sells and distributes various snacks in the United States and internationally, manufactures concentrates of Pepsi, Mountain Dew and other brands for sale to franchised bottlers in the United States and international markets and produces, markets, sells and distributes juices under several Tropicana trademarks in the United States and internationally. Pepsi co.’s domestic snack food business is conducted by Frito-Lay North America, and its international snack food business is conducted through Frito-Lay International. The Company's soft drink business operates as the Pepsi-Cola Company and is comprised of two business units, Pepsi-Cola North America (PCNA) and Pepsi-Cola International (PCI). In December 2000, the Company announced an agreement under which a subsidiary of PepsiCo will merge with The Quaker Oats Company, and Quaker will become a wholly owned subsidiary of PepsiCo. Quaker is a large worldwide marketer of foods and beverages. It manufactures and markets Gatorade thirst quencher, along with hot cereals; snacks pancake

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syrups, grain-based, cornmeal, hominy grits and value-added rice products. The proposed merger is subject to certain closing conditions, including approval by shareholders of both companies and regulatory approvals. The transaction is expected to close in the first half of 2001. PepsiCo also operates several food franchises including Pizza Hut, KFC, and Taco Bell.

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SCOPE OF

THE

STUDY

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The purpose of the study is to make an in-depth analysis of the current problem relating to consumer attitude towards Pepsi under the current scenario of the Indian industry.

Through this study company can know about its growth.

This study will also help to the company to know about their new concept position in the market.

The study will also help to the company to know about promotional activity.

Through this study company will know about the availability of product in the market.

.

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ASSUMPTIONS

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ASSUMPTION

Assumption 1

Customers prefer PEPSI.

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RESEARCH

METHODOLOGY

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Methodology

To understand the Indian consumer, a proper research methods need to be applied to get the correct results. A research process consists of stages or steps that guide the project from its conception through the final analysis, recommendations and ultimate actions. The research process provides a systematic, planned approach to the research project and ensures that all aspects of the research project are consistent with each other. Research studies evolve through a series of steps, each representing the answer to a key question. This chapter aims to understand the research methodology establishing a framework of evaluation and revaluation of primary and secondary research. The techniques and concepts used during primary research in order to arrive at findings; which are also dealt with and lead to a logical deduction towards the analysis and results. From the prescribed methodology followed, following would be obtained.

Research Design

I propose to first conduct a intensive secondary research to understand the full impact and implication of the industry, to review and critique the industry norms and reports, on which certain issues shall be selected, which I feel remain unanswered or liable to change, this shall be further taken up in the next stage of exploratory research. This stage shall help me to restrict and select only the important question and issue, which inhabit growth and segmentation in the industry. The various tasks that I have undertaken in the research design process are:-

• Defining the information need

• Design the exploratory, descriptive and causal research.

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Research Process

The research process has four distinct yet interrelated steps for research analysis. It has a logical and hierarchical ordering:

• Determination of information research problem.

• Development of appropriate research design.

• Execution of research design.

• Communication of results.

Each step is viewed as a separate process that includes a combination of task, step and specific procedure. The steps undertake are logical, objective, systematic, reliable, valid, impersonal and ongoing.

Exploratory Research

The method I used for exploratory research wasØ Primary DataØ Secondary data

1. Primary Data

New data gathered to help solve the problem at hand. As compared to secondary data which is previously gathered data. An example is information gathered by a questionnaire. Qualitative or quantitative data that are newly collected in the course of research. In the report the primary data source are questionnaires filled by 100 respondents.

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2. Secondary Data

Information that already exists somewhere, have been collected for another purpose. Sources include census reports, trade publications, and subscription services. In my report, I had many sources for secondary data. The data available on the websites of both Pepsi were used as the secondary data, as well as brochures of the company very useful for the research. I also used information published in Times of India and The Economic Times. Before writing the report a thorough secondary data research was also done.

Data Collection

Data collection took place with the help of filling of questionnaires. The questionnaire method has come to the more widely used and economical means of data collection. The common factor in all varieties of the questionnaire method is this reliance on verbal responses to questions, written or oral. I found it essential to make sure the questionnaire was easy to read and understand to all spectrums of people in the sample. It was also important as researcher to respect the samples time and energy hence the questionnaire was designed in such a way, that its administration would not exceed 4-5 minutes. These questionnaires were personally administered. The first hand information was collected by making the people fill the questionnaires. The primary data collected by directly interacting with the people.

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Population and Sampling

It is a description of the characteristics of that group of people from whom a course is intended. It attempts to describe them as they are rather than as the describer would like them to be. Also called the audience the audience to be served by our project includes key demographic information (i.e.; age, sex etc.).The specific population intended as beneficiaries of a program. The target population is the population I want to make conclude an ideal situation; the sampling frames to matches the target population. A specific resource set that is the object or target of investigation. The audience defined in age, background, ability, and preferences, among other things, for which a given course of instruction is intended. I have selected the sample trough Simple random Sampling.

Sample Size

This involves figuring out how many samples one need. The numbers of samples you need are affected by the following factors:

• Project goals

• How you plan to analyze your data

• How variable your data are or are likely to be

• How precisely you want to measure change or trend

• The number of years over which you want to detect a trend

• How many times a year you will sample each point.

I have targeted 100 people for the purpose of the research. The target population influences the sample size. The target population represents Moradabad/ Delhi region. The people were from different professional backgrounds.

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DATA ANALYSIS

AND

INTERPRETATION

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1. Do you drink Cold drink ?

a. YES

b. NO

INTERPRETATION;- 81% people says that they drink cold drink.

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2. Which cold drink do you prefer?

a. PEPSI

b. COKE

c. Limca

d. Fanta

INTERPRETATION;- Most of the consumers prefer Coca Cola rather then PEPSI.

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3. . Have you seen any advertisement of PEPSI?

a. YES

b. NO

INTERPRETATION;- Through the survey I found that most of the consumers had seen any advertisement of any cold drink.

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4. . Advertisement of which Cold drinks do you remember the most?

a. PEPSI

b. COKE

c. Limca

d. othe

INTERPRETATION;- I found that peoples mostly remember the advertisement of Coca cola.

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5. Which cold drink do you get easily available?

a. PEPSI

b. COKE

c. Limca

d. Fanta

INTERPRETATION;- Through the survey I found that consumers easily get Coca cola as compare to Pepsi.

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6. Why do you like PEPSI?

a. Refreshment

b. Time pass

c. Liking

INTERPRETATION;- Most of the peoples said that they like cold

drink just for refreshment.

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7. Which factor influences you to drink PEPSI?

a. Brand Image

b. Price

c. taste

INTERPRETATION;- Peoples said that the factor which most influence them to buy Pepsi is its Brand image.

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8. Are you aware about the promotional strategies of PEPSI ?

a. Yes

b. No

INTERPRETATION;- From survey I found that most of the consumer knows the promotional strategy of Pepsi.

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9. Which factor do you suggest the company should lay emphasis to enhance its sales ?

a. Quality improvement

b. Awareness

c. Advertisement campaign

INTERPRETATION;- Most of the consumer said that Pepsi should improve its quality for increase its sale.

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10. How much are you satisfied with PEPSI ?

a. Very much satisfied

b. Satisfied

c. Average

d. Dissatisfied

e. Very much dissatisfied

INTERPRETATION;- Most of the consumers are at last satisfy by the Pepsi and no one is Very much dissatisfy.

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FINDINGS

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Findings.Out of the sample size of 50 customers , 81% people says that they drink cold drink.

.Most of the consumers prefer Coca Cola rather then Pepsi.

.Through the survey I found that most of the consumers had seen any advertisement of any cold drink.

.I found that peoples mostly remember the advertisement of Coca

cola.

.Through the survey I found that consumers easily get Coca cola as compare to Pepsi.

.Most of the peoples said that they like cold drink just for refreshment.

.Peoples said that the factor which most influence them to buy Pepsi is its Brand image.

.From survey I found that most of the consumer knows the promotional strategy of Pepsi.

.Most of the consumer said that Pepsi should improve its quality for increase its sale.

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SUGGESTION

AND

RECOMMENDATION

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Suggestions and Recommendatation

Suggestions:-

New Product Development.

Advertising and innovative promotion.

Produce a range of ‘healthy’ alternatives under the brand name

‘Pepsi Fresh’.

Increase distribution chanal.

Increase quantity.

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LIMITATION

Limitations45

There is shortage of time to consumer because of their work.

The views of the people are biased.

The finding entirely depends upon the willingness of the respondent.

respondents It was not possible for the researcher to cover al the due to the time and cost consideration.

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CONCLUSION

47

Conclusion

From the analysis of the data collected , I have reached the following conclusions :

1. PEPSI is most popular amongst its users mainly because of its TASTE, BRAND NAME, INNOVATIVENESS .

2. Mostly consumers remember the advertisement because of the frequency of add and brand ambassadors, creativity.

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BIBLIOGRAPHY

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BIBLIOGRAPHY

Kotler , Philip 2002, PHI (I) P.ltd. , Marketing management

Kothari, C.R.2001, Himayalayan Publications, ResearchMethodology

Websites :

www.google.comwww.wiki.comwww.yahoo.co

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ANNEXURE

51

1. Do you drink Cold drink? a. YES b. NO

2. Which cold drink do you prefer? a. PEPSI b. COKE c. LIMCA d. FANTA

3. Have you seen any advertisement of PEPSI?   a. YES b. NO

4. Advertisement of which cold drink brand do you remembers the most?

a. PEPSIb. COKEc. LIMCAd. FANTAe. OTHERS

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6. Why do you like PEPSI?

a. REFRESHMENTb. TIME PASSc. LIKING

7. Which factor influences you to drink PEPSI?

a. BRAND IMAGE b. PRICE c.TASTE

8. Are you aware about the promotional strategies of PEPSI?

a. YES b. No

9. Which factor do you suggest the company should lay emphasis to enhance its sales?

a. QUALITY IMPROVEMENT b. AWARENESS

c. ADVERTISEMENT CAMPAIGN

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10.How much are you satisfied with Pepsi?

a. VERY MUCH SATISFIED b. SATISFIEDc. AVERAGEd. DISSATISFIED

e. VERY MUCH DISSATISFIED

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