FACTORS LEADING TO GROWTH OF

SOFT DRINK INDUSTRY IN INDIA

1
 INDEX

PAGE

I. Introduction
4
II. Purpose of the study
4
III. Objectives of study
5
IV. Scope of study
5
V.Methodology
6
VI. Assumptions & Limitations
7
VII. Research & Findings:
 What is a beverage?
8
 Study of growth of soft drink market
11
 Indian history
11
 Growth of soft drink market in India
12
 Present scenario of soft drink market
13
 Market statistics
15
 Major players in the soft drink market 16

2
 VIII. Research Design
20
IX. Sampling technique used
21
X. Sources of data collection
21
XI. Data analysis & findings
23
XII. Findings & analysis
29
XIII. Conclusion
31
XIV. Appendices
32
XV. Bibliography
33

3
INDEX OF TABLES &
ILLUSTRATIONS
1. TABLES: PAGE

1.1: Drink preference.

23
1.2: Frequency of consumption.
24
1.3: Reason for consumption of Soft Drink.
25
1.4: Reason for purchase of Soft Drink.
26
1.5: Alternative to Soft Drinks.
27
1.6: Effect of advertisement on purchase of Soft
Drinks. 28

2.GRAPHS:

2.1: Drink preference.

23
2.2: Frequency of consumption.
24
2.3: Reason for purchase of Soft Drink.
26

3.PIE - CHARTS:
4
 3.1: Reason for consumption of Soft Drink.
25
3.2: Alternative to Soft Drinks.
27
3.3: Effect of advertisement on purchase of Soft
Drinks. 28

4.

5
 INTRODUCTION
Soft Drinks are a common preference among all the
individuals. With the changing lifestyle and income levels,
people are shifting their consumption patterns. Market
Research is based on consumption patterns parameters like:
In consumption patterns, I want to highlight the factors which
influence the consumer to buy soft drinks. Various factors
which influence the consumption of beverages are:

1. Health drink
2. Status symbol.
3. Taste
4. Variety
5. Brand ambassador
6. Advertising campaign.
The basic subject matter of the research, analysis of Soft
Drinks is focused to study the mind/taste of different age
groups of people .The study starts with determining the major
players in the soft drinks, their overall consumption pattern
among the people and ends up with the conclusion as per the
state of mind of the average rational human being.

PURPOSE OF THE STUDY

The main aim of this research study is to analyse the

preference of people (of different age groups) on

6
consumption patterns of carbonated Soft Drinks, hence
leading to the growth of Indian soft drink industry.

OBJECTIVES OF THE STUDY

 To study the preferences of the people for the soft drinks

according to the different age groups.
 To find out the factors that influences the consumer’s
consumption of soft drinks.
 To determine which alternative people prefer other than
soft drinks.
 To test the know-how of the consumers regarding the
various existing brands of soft drinks.
 To find out how the soft drinks are positioned in the mind
of the consumers.

SCOPE OF THE STUDY

 Seasonal drinks are not considered in the study.

 Not considering water & alcoholic drinks.
 This study is confined to the areas of Santa Cruz, Khar
& Bandra.

This study examined the relative contributions of taste and

health considerations on consumer liking and purchase intent
of cola drinks. Consumers were asked

7
to complete a brief questionnaire on soft drinks. Data were
analysed using factor analysis. Results revealed that purchase
intent of cola drinks was strongly related to degree of liking and
to several key sensory attributes including taste, drinks flavour
and greasiness.
These variables merged as factors in the analysis: Factor 1
suggests that consumers perceive these characteristics as
being most important in their choice of cola drinks.

Factor 2 described a health dimension and was related to

respondent’s attitudes.
Factor 3 comprised two remaining sensory attributes (colour
and crunchiness), which apparently were of minor importance
to the respondents. These data suggest that in spite of current
concern about reducing dietary fat, health remains secondary
to taste in the selection of cola drinks for consumers in this
population.

METHODOLOGY

Every project work is based on certain methodology, which is a

way to systematically solve the problem or attain its objectives.
It is a very important guideline and lead to completion of any
project work through observation, data collection and data
analysis. Accordingly, the methodology used in the project is as
follows: -

•Defining the objectives of the study

•Framing of questionnaire keeping objectives in mind
(considering the objectives)
8
•Feedback from the respondents
•Analysis of feedback •Conclusion &
findings

Data is collected through Market survey in areas of

Mumbai – Santa Cruz, Khar and Bandra.
Data Collection Instrument:
Well prepared structured questionnaires were used in this
study, which includes both closed-ended and few open-ended
questions to get information based on the objective of the
research process. People of different age group from different
economic background were asked to fill the questionnaire
containing 10 questions. Sample Size is taken 100.

ASSUMPTIONS
 It is assumed that the chosen sample is the
representation of whole population.
 It is assumed that information provided by the samples
is accurate and best of their knowledge.

LIMITATIONS

 The study was confined to some areas of Mumbai only.

 Retailers view and the companies view to the

questionnaire were not available.

9
 Time and cost constraints were also there.

 Only few soft drinks have been taken into

consideration, the taken products are specified later
in the project.
 A Sample size of 100 has been taken due to time
limitations.
 Some respondents took the questionnaire as
wastage of time thus filing them very casually which
has been ignored.
 Since the result has been drawn on the basis of the
information provided by the respondents therefore there
is a chance of error.

10
 RESEARCH & FINDINGS

BEVERAGE
What is a beverage?
A drink, or beverage, is a liquid specifically prepared for human
consumption. In addition to basic needs, beverages form part
of the culture of human society. Or

Any liquid suitable for drinking; "may I take your

beverage order?"
Or
Beverage is a liquid to consume, usually excluding water.
This may include tea, coffee, liquor, beer, milk, or soft drinks.

Types of beverages:
The various types of beverage are:
•Alcoholic beverages •Non-Alcohol
beverages •Soft drinks

•Fruit juice
•Hot beverages
•Others

1. Alcoholic beverages:
An alcoholic beverage is a drink containing ethanol, commonly
known as alcohol, although in chemistry the definition of an
alcohol includes many other compounds. Alcoholic beverages,
such as wine, beer, and liquor have been part of human
culture and development for 8,000 years.

11
2. Non-alcohol beverages:
Non-alcoholic beverages are drinks that would normally
contain alcohol, such as beer and wine but are made
with less than 0.5 per cent alcohol by volume. The
category includes drinks that have undergone an
alcohol removal process such as non-alcoholic beers
and de-alcohol zed wines.
Non-alcoholic variants:
•Low alcohol beer
•Non-alcoholic wine
•Sparkling cider

3. Soft drinks:
The name "soft drink" specifies a lack of alcohol by way of
contrast to the term "hard drink" and the term "drink", the latter
of which is nominally neutral but often carries connotations of
alcoholic content. Beverages like colas, sparkling water, iced
tea, lemonade, squash, and fruit are among the most common
types of soft drinks, while hot chocolate, hot tea, coffee, milk,
tap water, alcohol, and milkshakes do not fall into this
classification. Many carbonated soft drinks are optionally
available in versions sweetened with sugars or with non-caloric
sweeteners. Carbonated drinks are dominated by artificial
flavours based on cola, orange and lime with Pepsi and Coca-
Cola dominating the market. The entire part of the drink is
based on its artificial flavours and sweetening agents as no
natural juice is used.

4. Fruit juice:

12
Juice is a liquid naturally contained in fruit or vegetable tissue.
Juice is prepared by mechanically squeezing or macerating
fresh fruits or vegetables without the application of heat or
solvents. For example, orange juice is the liquid extract of the
fruit of the orange tree. Juice may be prepared in the home
from fresh fruits and vegetables using variety of hand or electric
juicers. Many commercial juices are filtered to remove fibre or
pulp, but high pulp fresh orange juice is a popular beverage.
Juice may be marketed in concentrate form, sometimes frozen,
requiring the user to add water to reconstitute the liquid back to
its "original state"

5. Hot beverages:
There are many hot beverages available some of them are:

 Cappuccino
 Coffee
 Espresso
 Café au lait
 Frappé
 Flavoured coffees (mocha etc.)
 Latte
 Hot chocolate
 Hot cider
 Mulled cider
 Tea-based beverages
 Flavoured teas (chai etc.)
 Green tea
 Pearl milk tea
 Tea
 Herbal teas
 Yerba Mate
13
 Roasted grain beverages

6. Other
Some substances may either be called food or drink, or
accordingly be eaten with a spoon or drunk, depending
on solid ingredients in it and on how thick it is, and on
preference:
•Soup
•Yogurt

STUDY OF GROWTH OF SOFT DRINK MARKET

INDIAN HISTORY:
Around 1948 the first branded soft drink was introduced in the
Indian market. This soft drink was named as Gold Spot. Before
Coco Cola entered the country to dominate the scene in 1950,
Parle Exports Pvt. Ltd. was the first Indian company to
introduce a lemon soft drink and this drink was known as Limca
and it was introduced in 1970.In the year 1977 Coca Cola left
Indian market and this brought in an opportunity for various
Indian companies to show their calibre. At this time a new soft
drink was introduced by Parle products. This drink was
introduced with a mighty saying "happy days are here again".
As if happy days went away with Coca Cola. There was
another company named Pure Drink, which

14
introduced the soft drink named Campa Cola along with orange
and lemon flavours. Just after this many more companies
entered the soft drink market. A soft drink name double had
been introduced by company Modern bakers. Another
company Mohan Meakins also came up with a Soft drink
named Mary & Punch up, McDowell came with thrill, Push and
Sprint. Previously there was no competition in the Indian soft
drink market but with all companies coming in the Indian
market a huge competition was place with college
advertisements. But in the year 1988 Pepsi was given
permission to sell its soft drinks in the Indian market by the
Government of Indian. Coca Cola also come back in the year
1993.

GROWTH OF SOFT DRINK MARKET IN INDIA:

Today India is one of the most potential markets, with
population of around 100 crore on people; the Indian soft drink
market was only of 200 cases per year. This was very low even
compared to Pakistan and Philippines. Population and potential
market are two major reasons for major multinational
companies of entering India. They feel that huge population
coupled with low consumption can only lead to an increase in
the soft drink market. Another increase in the sale of soft drinks
in the scorching heat and the climate of

15
India, which is suitable for a high sale of the cold drink. All
these factors together have contributed to a 30-percent growth
in the soft drink industry. If the demand continues growing at
the same rate, with in few years the volume could touch 1
billion cases. All these factors are the reasons for the entry of
the soft drink market of the world to enter the Indian market.
These two giants Pepsi &Coca Cola themselves share 96% of
the soft drink market share. Rest is shared by Cadbury’s
Schweppes, campa –cola & Parle (Thums up & Limca). Soft
drink consist of a flavour base, sweetener and carbonated
water in general terms non-alcoholic drinks are considered as
soft drink this name soft drink was given by Americans are
against hard which is mainly alcoholic. The major participant
involves in the production and distribution of soft drink
concentrate and syrup producers, bottlers and retail channel.
Concentrate producers manufacture basic soft drink flavour and
sell them to bottlers. Bottlers purchased concentrate, at
carbonated water and sometime sweetener, and deliver it to the
customer accounts. Retail channel refers to business location
that sells or serves the products directly to the consumers. Soft
drink is not a product, which a person plans to buy beforehand,
but it is an impulse purchased. Lots of sale depends upon the
strength of merchandising done at the point of sale. It all begin
in 1977, a change in government at the centre led the exit of
Coca Cola which preferred to quit rather diluting its equity to
40% in compliance with the foreign exchange management act
(FEMA). The first national cola drink to pop up was double
seven. In the meantime, pure drinks, Delhi on

16
Coca Cola’s exit, switched over to Campa-Cola. The beginning
of 1980 s saw birth of another cola drink, Gold spot launched in
1978-79,AS “REFRESHING COLA “ by the mid- eighties “Mc
Dowell’ and by the late eighties there was “Double Cola” by the
Parle group, which entered in India market (share 33%) with its
Gold Spot and Limca brands. Later Thums up also started
thums up. At the same time threat to the Indian soft drink was
that of fruit drinks. In 1988, fruit drink market was valued at
Rs.40 crore &grew at the rate 20%. Coca Cola-cola entered
India buying up to 69% of the 18,000 crore soft drink market
(i.e. Parle expert brand of Thums up, limca, gold spot, Citra &
Mazza). Today the scene has changed making it a direct battle
between two giant Coca Cola-cola & Pepsi. The picture will
become clearer by looking at the Indian market shares in the
beverages industry.

PRESENT SCENARIO OF SOFT DRINK MARKET:

The soft drink market all over the world has been witnessing a
throat cut battle between two major players: Coca Cola &
Pepsi. The thirst quenchers are trying hard to have the major
piece of the apple of overall carbonated soft drink market. Both
the players are spending energies in building capacity,
infrastructure, promotional activities etc. Coca Cola, being 11
years older than Pepsi, has been dominating the scene in most
of the soft drink market of world and enjoying the leadership in
terms of the share. But the Coca Cola people are finding it hard
to deep away Pepsi, which has been narrowing the gaps
regularly. The

17
two are posing threats for each other in every nook and corner
of the world. While Coca Cola has been earning most of the
part of its bread and butter through beverages sales, but Pepsi
has a multi-product portfolio with a handsome portion from the
same business. The warriors are face to face once again here
in India with different strategies and tactics to attack the rival.
Coca Cola is focusing upon the joint ventures with the exiting
bottlers’ to enhance its control on manufacturing in marketing of
its products range and attain the equality standards of its class.
Countering it Pepsi has taken the battle in its own hands by
floating as investment of $9.5 billon to set Pepsi Co. India
holdings as a subsidiary for company owned bottling operations
(COBOL). Both the companies are following different path for
reach the same destiny, i.e., to fetch the bigger portion of the
aerated soft drink market in India. Both the competitors have a
distinct vision and properties about the Indian soft drink market.
Though having so much difference and distances with each
other, they both consider India a huge potential market, as per
capita consumption here is a mere three serving annually
against the world average therefore, they are putting in their
best effort to woe the India consumer who has to work for 1.5
hour to buy a bottle soft drink in comparison to the international
norms of 5 minutes, a major hurdle to cross over for both the
athletes on getting no.1 position. Coca Cola is well with its 53
bottling sites throughout the country giving it an edge over
competition by processing a well built and distribution set up.
On the other hand, Pepsi, with two more years in India, has
been able to set an image of

18
winner this time in India and get the pulse of Indian soft drink
market. The soft drink giants are leaving no stone unturned.
Coca Cola has been penetrating the market through its wide
product range with a determination to change consumption
pattern of soft drink in India.
Firstly, they upgraded the whole industry by introducing 300 ml
bottles, which in turn had given the industry a booming growth
of 20% as compared to the earlier 5%. They want to develop a
Coca culture and are working on a strategy to offer soft drink in
every possible package. In Coca Cola cap, the idea of
competition has not come from Pepsi, but from the other
beverages such as Tea, Coffee, Nimbu Pani, and Water etc.
Pepsi is quite aggressive in its approach to Indian consumer.
They are desperately working on the strategy to be winners in
the hot cola war between two big banners. According to Pepsi
philosophy, it’s the madness encourages executive to think, to
conjure up those creative tactics to knock the fizz out there
competition. Pepsi had plumbed a large on the visibility of its
blue red and white logo. They have been going with aggressive
marketing by putting Sachin Tendulkar, Akshay Kumar, and now
Shahrukh Khan in their advertisement to endorse their brand,
the role models for its targeted consumer, the teenagers. They
have increased the fizz in the market place by introducing the
dispensers called Fountain Pepsi and has been enjoying a lead
over its rival there.

Coca Cola on the other hand, has been working on the saying
‘slow and steady wins the race’, side by side retailing to every
more of its competitor. They have

19
produced the shield of Thums Up with a handsome market
share in Indian soft drink market. Countering Pepsi’s
international commercial that used two chimpanzees to cock a
snoop at Coca Cola. Thums Up has been positioned now very
near to that young image of Pepsi and giving it a tuff time.
These cool merchants have put everything on fire .If Coca Cola
get the status of the official drink of wills world cup, Pepsi
blushed as nothing official about it. As Thums up projected as
‘Sare jahan se accha’, Pepsi was passionate enough with
‘freedom to be’ and now the “yeh dil mange more”

MARKET STATISTICS:

 Cola products account for nearly 62% of the total soft drinks
market.
 Two global majors’ Pepsi and Coke dominate the soft drink
market.
 NCAER survey says 91% of soft drink in the country is in the

lower middle and upper middle class people.

 The market is worth around Rs.5000 crores with grow th rate
of around 10-15%.
 The annual per capita consumption in India is only about
6 bottles Vis-a-Vis 340 bottles in the U.S.
 India's non-alcoholic drinks market is set to grow by 20%
per year between now and 2015, according to a report by
The Associated Chambers of Commerce and Industry of
India (ASSOCHAM).
 Consumption of soft drinks in the country currently stands
at around 175,000bn litres per annum and is likely to
surpass 350,000bn litres by 2015.
20
MAJOR PLAYERS IN THE SOFT DRINKS
SEGMENT:

COCA COLA: “THANDA MATLAB COCA COLA!”

Coca cola has truly remarkable heritage. From a humble

beginning in 1886 it has now become the flagship brand of
largest manufacturer, distributor of non- alcoholic beverages in
the world. In India, coca cola was the leading soft drink till 1977
when govt. policies necessitated its departure. Coca cola has
made its return to the country in 1993.and made significant
investment to ensure that the beverage is available to more
and more people in remote as well as inaccessible parts of the
world. Coca cola returned to India in 1993 and over the past
ten years has captured the imagination of the nation, building
strong association with cricket, the thriving cinema industry,
music etc. coca cola has been very strongly associated with
cricket, sponsoring the world cup in 1996.In 2002, coca cola
launched the campaign, ”Thanda Matlab coca cola”.

PEPSI: “YEH DIL MAANGE MORE!”

21
Pepsi cola is a carbonated beverage that is produced and
manufactured by Pepsi co. It is sold in stores, restaurants and
from vending machines. The drink was first made in the
1890’s in North Carolina. The brand was trademarked on June
16, 1903.There have been many Pepsi variants produced
over the years. •Diet Pepsi

•Crystal Pepsi
•Pepsi twist
•Pepsi max
•Pepsi samba
•Pepsi blue
•Pepsi gold
•Pepsi holiday spice
•Pepsi jazz
•Pepsi x (available in Finland & Brazil)
Pepsi next (available in Japan & South Korea)

22
THUMS UP: “TASTE THE THUNDER!”

Strong cola taste, exciting personality. Thums up is a leading

carbonated soft drink and most trusted brand in India. Originally
introduced in 1977, thums up was acquired by the coca cola
company in 1993.Thums up, is, known for strong, fizzy taste
and its confident, mature and uniquely masculine attitude. This
brand clearly seeks to separate the man from the boys.

SPRITE: “SPRITE BHUJAYE PYAAS BAKI SAB

BAKWAAS!”

Worldwide sprite ranked as no.4 soft drink and is sold in more

than 190 countries In India, sprite was launched in year 1999
and today it has grown to be one of the fastest growing soft
drinks, leading clear lime category. Today sprite is perceived as
a youth icon. With strong appeal to youth sprite has stood for a
straight forward and honest attitude. It’s clear crisp hingtaste
23
encourages today’s youth to trust their instincts, influence
them to be true who they are and to obey their thirst.

FANTA: “GHOONTH BHAR SHARARAT KAR LEY!”

Fanta entered the Indian market in year 1996 under the coca
cola brand .over the years, Fanta has occupied a strong
market place and is identified as “the fun catalyst”. Fanta
stands for its vibrant colour, tempting taste and tingling bubbles
that not just uplifts feelings but also helps free spirit thus
encouraging one to indulge in the moment.

LIMCA: “LIME AND LEMONI!”

Limca is a drink that can cast a tangy refreshing spell on

anyone, anywhere. Born in 1971, Limca has been the
original thirst choice, of millions of consumers for over three
decades. The brand has been displaying healthy volume
growing year on year and Limca
24
continues to be leading flavouring soft drinks in the
country .Dive into the zingy refreshment of Limca and walk
away a new person.

RESEARCH DESIGN:

A research design is a framework or blueprint for conducting

the marketing research project. It specifies the details of the
procedures necessary for obtaining the information needed to
structure and/or solve marketing research problem. On the
basis of fundamental objectives of the research we can
classify research design into two general types:

 EXPLORATORY RESEARCH
 CONCLUSIVE RESEARCH

Exploratory research is one type of research design, which has

its primary objective the provision of insights into, and
comprehension of, the problem situation confronting the
researcher.

Conclusive research is designed to assist the decision maker in

determining, evaluating and selecting the best course of action
to take in a given situation.
Conclusive research can be further divided into two
types:-
•Descriptive
•Experimental

25
The research design used in this project is a
DESCRIPTIVE DESIGN.

Descriptive study as the name implies is designed to

describe something-for example the characteristics of users
of a given product, the degree to which the product use
varies with income, age, etc.

SAMPLING TECHNIQUE USED:

This research has used convenience sampling

technique.

Convenience sampling technique:

Convenience sampling is used in exploratory research where
the researcher is interested in getting an inexpensive
approximation of the truth. As the name implies, the sample
is selected because they are convenient.

SELECTION OF SAMPLE SIZE:

For the study, a sample size of 100 has been taken into
consideration. The aim was to collect 100 samples for the
analysis. The samples should be such that they are consumers
of soft drinks. I also tried to get an adequate ratio of men and
women in the samples. The main demographics targeted were
the younger age group as

26
they are one who consumes more of soft drinks. Also I tried to
focus more on the college going crowd and young
professionals. Buyers who have been consuming soft drinks
were better able to answer the questions regarding the
influencing factors and the reasons for their consumption and
purchase.
SOURCES OF DATA COLLECTION:
Research will be based on two sources:
1. Primary data
2. Secondary data

PRIMARY DATA:
Questionnaire: Primary data was collected by preparing
questionnaire and the people were randomly being requested
to fill them.

SECONDARY DATA:
Secondary data will consist of different literatures like books
which are published, articles, internet and websites. In order
to reach relevant conclusion, research work needed to be
designed in a proper way.

STATISTICAL TOOLS USED:

The main statistical tools used for the collection and
analyses of data in this project are: •Questionnaire

•Pie Charts
•Bar Diagrams

27
 DATA ANALYSIS & FINDINGS

Q1. What do you prefer to drink? (Tick any 1)

Particulars No. of Percentage

Soft drinks respondents 57%
57
Fruit juices 43 43%
Total 100 100%

Table 1.1: Drink preference

28
 Series 1
60%
50%
No. of Respondents Series 1
40%
30%
20%
10%
0%
Soft Drinks Fruit Juices

Graph 2.1: Drink preference

ANALYSIS:
From the survey it was found that amongst
100 respondents
a) 57% of the respondents prefer Soft Drinks
to drink.
b) 43% of the respondents prefer Fruit Juices
to drink.

Q2. Frequency of consumption of your preferred drink in a

week?

Particulars No. of Percentage

Daily respondents 49%
28
2 - 6 times 23 40%

29
 Above 7 6 11%
Total 57 100%
Table 1.2: Frequency of consumption

60%

50%

40%

30% Above 7
No. of Respondents
20%
10%

0%

Daily 2 - 6 times Above 7

Weekly Consumption

Graph 2.2: Frequency of consumption

ANALYSIS:
From the survey it was found that amongst 57
respondents.
a) 49% of the respondents consume Soft Drinks daily.
b) 43% of the respondents consume Soft Drinks 2-6
times.
c) 11% of the respondents consume Soft Drinks more than
7 times.

30
Q3. On what occasions, do you often consume the Soft
Drinks?

Particulars No. of Percentage

Feeling thirsty respondents 11%
11
Parties / 45 45%
Celebrations 25 25%
Without any
reason 12 12%
Others
Total 100 100%

Table 1.3: Reason for consumption of Soft Drink

12% 18% Feeling thirsty

25% Parties /
Celebrations
45% Without any reason

Others

Pie-Chart 3.1: Reason for consumption of Soft Drink

ANALYSIS:
From the survey it was found that amongst 100
respondents.

31
a) 18% of the respondents consume Soft Drinks when they
feel thirsty. b) 45% of the respondents consume
Soft Drinks at the time of celebrations.
c) 25% of the respondents consume Soft Drinks without any
reason.
d) 12% of the respondents consume Soft Drinks on other
occasions

Q4. What induces you to buy Soft Drinks?

Particulars No. of Percentage

Price with Respondents 30%
30
quantity 4 4%
Health Drink
Status Symbol 8 8%
Taste 32 32%
Variety 26 26%
Total 100 100%

Table 1.4: Reason for purchase of Soft Drink

35%
30%
25%
20%
15%
10%
5% series 1
No. of 0%

Graph 2.3: Reason for purchase of Soft Drink

32
ANALYSIS:
From the survey it was found that amongst 100
respondents.
a) 30% of the respondents consume soft drinks
because of its price.
b) 04% of the respondents consume soft drinks
because it is a health drink.
c) 08% of the respondents consume soft drinks because it is a
status symbol.
d) 32% of the respondents consume soft drinks
because of its taste.
e) 26% of the respondents consume soft drinks
because of its variety.

Q5. If not a Soft Drink or a Fruit juice, which other

beverage (other than water) tops your mind?

Particulars No. of Percentage

Coffee Respondents 30%
30
Tea 25 25%
Shakes 8 8%
Lassi 12 12%
Sharbat 25 25%
Total 100 100%

Table 1.5: Alternative to Soft Drinks

33
 25% 30% Coffee

12% Tea
Shakes
8% 25% Lassi
Sharbat

Pie–Chart 3.2: Alternative to Soft Drinks

ANALYSIS:

From the survey it was found that amongst 100

respondents:
a) 30% of the respondents prefer coffee.
b) 25% of the respondents prefer tea.
c) 08% of the respondents prefer Shakes.
d) 12% of the respondents prefer Lassi.
e) 25% of the respondents prefer Sharbat.

Q6. Do advertisements affect your purchases?

Particulars No. of Percentage

Yes Respondents 77%
77
No 23 23%
Total 100 100%

Table 1.6: Effect of advertisement on purchase of

Soft Drinks.

34
 19%
Yes

81% No

Pie-Chart 3.3: Effect of advertisement on purchase

of Soft Drinks.

ANALYSIS:
From the survey it was found that amongst 100
respondents:
a) 77% of the respondents think that advertisements affect
their purchases.
b) 23% of the respondents think that advertisements do not
affect their purchases.

FINDINGS & ANALYSIS

1. The Coca Cola holds no. 1 position in the market with its
mother brand.
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2. Its brand Sprite too holds a good grip over the
market in comparison to main competitor 7Up.
3. Thums-Up is having major market share as compared to
Pepsi.
4. Coca Cola is giving Rs.10 discount per crate and
Pepsi is giving Rs.12 per crate.
5. People have tendency to switch over to another brand
and because of duopoly (only two players are available in
the market Pepsi and Coca Cola) the competition is very
direct.
6. The demand of Coca Cola is high in comparison to Pepsi
but because of shortage of Coca Cola and poor distribution
the retailers prefer to sell Pepsi.
7. Total sales of Coca Cola are greater than Pepsi.

If the Buying decision of consumer is rated:

 1st preference will go to Taste,

 2nd will go to Brand,
 3rd preference will go to schemes,
 4Th preference will go to Price,
 5th preferences will go to Packaging.

Multinational soft drinks groups have built strong positions in

the growing Indian soft drinks market, in spite of relatively
high taxation and the setback of the pesticide row in 2003.
And with a huge amount of untapped potential remaining,
particularly in rural markets, industry analyst believes the
majors will continue to dominate.

Market size, growth rate and overall profitability are three

economic indicators that can be used to evaluate

36
the soft drink industry. The market size of this industry has
been changing.
Soft drink consumption has a market share of 46.8% within
the non-alcoholic drink industry. Clearly, the soft drink industry
is lucrative with a potential for high profits, but there are
several obstacles to overcome in order to capture the market
share.
Three leading companies have prominent presence in the
soft drink industry. The leaders include the Coca-Cola
Company, PepsiCo, and Cadbury Schweppes.
According to the Coca-Cola annual report (2004), it has the
most soft drink sales with $22 billion. The Coca-Cola product
line has several popular soft drinks including Coca-Cola, Diet
Coke, Fanta, and Sprite, selling over 400 drink brands in
about 200 nations. PepsiCo is the next top competitor with soft
drink sales grossing $18 billion for the two beverage
subsidiaries, PepsiCo Beverages North America and PepsiCo
International (PepsiCo Inc., 2004). PepsiCo’s soft drink
product line includes Pepsi, Mountain Dew, and Slice which
make up more than one quarter of its sales.

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 CONCLUSION

Following are the concluding points taken into consideration

after the conduct of the research study:
 Maximum consumption of soft drink in a week is 1-2 times.

 Most of the people prefer to buy 300 ml bottle.

 Most of the people consume without any occasion (Just
Like That)
 The most favourable characteristic is taste, which
induces people to buy soft drink.
 The most preferable alternative for soft drink is fruit juices.

The aerated soft drinks industry in India comprises over 100

plants across all states. It provides direct and indirect industry
related employment to over 1,25,000 employees. It has
attracted one of the highest foreign direct investments in the
country. It has strong forward and backward linkages with
glass, plastic, refrigeration, sugar and transportation industry.
Installed capacity of sweetened/aerated water as on January
2006 is reported to be 29.60 lakh tons p.a.

Indian soft drink market is valued to be Rs 6,000 crore. The

soft drink market can be broadly divided into two major
segments- carbonated soft drink and non-carbonated soft
drink. The carbonated drinks are the

38
mainstay and accounts for 85% of the total soft drink
market, however the growth rate has been stagnant and in
fact on declining trend on account of controversial issue of
pesticide. Non-carbonated soft drink category includes sub
category like fruit drink, juices, dairy drinks and more. The
preparatory soft drink market is around Rs 250 crores, out of
which Rasna has almost 90% volume share.

APPENDICES

SAMPLE QUESTIONNAIRE
Name:
Age:
Gender – Male / Female Occupation -
Student / Business / Service

1. Which soft drink do you generally consume?

Coke Pepsi Sprite Miranda Other (please
mention)

2. How many times do you consume a soft drink in a week?

1-2 times 2-5 times above 5

3. On what occasions, do you often consume the Soft Drinks?

Feeling Thirsty Parties / Celebrations
 With meals Without any reason (just like that)

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4. If not a Soft Drink, which other beverage (other than water) tops your
mind?
 Hot beverages Milk based (shakes / lassi) Fruit juice
5. Do advertisements affect your purchases?

 Yes No
6. What quantity do you usually prefer to buy?

 300 ml 500 ml bottle1 litre 1.5 litre

7. Do brand ambassador affect your purchases?

Yes No

ACKNOWLEDGEMENT
It is indeed a great pleasure and privilege for me to work
on:
“FACTORS LEADING TO GROWTH OF SOFT DRINK
INDUSTRY IN INDIA”
I also extend my thanks to all those who directly
or indirectly were involved in my project completion.

BIBLIOGRAPHY

 http://en.wikipedia.org/wiki/Beverage
 www.foodindustryindia.com
 http://fnbnews.com/article/detarchive.asp?
articleid=25105&sectioni =3
 %20energy%20drink%20for%20the%20Indian
%20market&id=598

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 http://fnbnews.com/redfr.asp?
fn=/other/aboutus.asp&title=About
%20Us#Food&beverage
 http://en.wikipedia.org/wiki/Beverage
 www.foodindustryindia.com
 http://www.foodindustryindia.com/newfood/detailnew
s.jsp?n=Xtazy,%20another%20energy%20drink
%20for%20the%20Indian%20market&id=598
 www.google.com
 Kothari C R, “Research and Methodology- Methods &
Techniques”

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