Changing mindsets in Consumption Pattern of SOFT DRINK in Rural Market
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Transcript of Changing mindsets in Consumption Pattern of SOFT DRINK in Rural Market
0
ldquoChanging mindsets in Consumption Pattern of SOFT DRINK in Rural Marketrdquo
Post-Graduate Diploma in Management
By
Ravi Kumar
Roll No(Pg08-080)
Under the guidance of
Prof Deepa AgnihotriFaculty Marketing
Inmantec Business School Ghaziabad
INMANTEC Integrated Academy of Management and Technology
Ghaziabad
DateOctober 2009
0
Table of ContentAcknowledgements 01
Preface 02
Objective of study 03
History of the Industry 04
Words of Ministry of Food Processing Industry for Soft Drink Industry 06
Robust growth continues 14
Companies reposition their brands and update product portfolios 14
Main Brands of the Industry 15
Rural Market Scenario 16
Key to success in Rural India 17
Literacy Review 19
Factors influencing buying behavior 22
Factors influencing buying behavior 23
Rural Branding 24
Research Design 25
Source of Data collection 26
Findings 27
Suggestions 28
Conclusion 29
Bibliography 30
0
Acknowledgements
I am highly indebted to my project mentor Prof Deepa
Agnihotri for her continuous support supervision
motivation and guidance through out the tenure of my
project in spite of her hectic schedule who truly remained
driving spirit in my project and her experience gave me the
light in handling research project and helped me in clarifying
the abstruse concepts requiring knowledge and perception
handling critical situations and in understanding the
objective of my work
(Ravi Garg)
0
Preface
Market provides a key to gain actual success only to those brands which match best to the current environment ie imperative which can be delivered what are the people needs and they are ready to buy at the right time without any delay It is perfectly true but this also depends on availability of good quality products and excellent taste and services which further attract and add a golden opportunity for huge sales
This also depends on the good planning approach and provide ample opportunity plus sufficient amount of products for sales in the coming next financial year
This project introduces study of consumerrsquos preferences for Soft Drink Industry After going through a detail analysis of market behavior and future prospect it may also provide an opportunity to the players those are playing a vital role in the industry to frame a good future plan to satisfy maximum needs of the customers and established its guiding role in throughout the country as a whole The study report will also provide an opportunity to delineate its market potential business areas products amp services are to be offered by the company to the customers
This study report also provides the various factors affecting the services Marketing Division of a soft drink company has to keep in mind various factors specially while preparing a plan for marketing its product or services Detail description along with analysis of surveyed data is being presented in this report
0
Aims and Objectives of the study
To study the profile of soft drink consumers
To study the behavioral pattern of rural consumer for soft drink products
To identify their level of satisfaction in the purchase of various soft drink products
To determine the various factors influencing the behavior of soft drink consumer
0
History of the Industry
SOFT DRINK INDUSTRIES IN INDIA- A soft drink is a non-alcoholic
beverage It is artificially flavored and contains no fruit or pulp India with population
of more than 100 crores is potentially one of the largest consumer markets in the
world after China The consumer market can be defined as the market for products
and services that are purchased by individuals as households goods for their personal
consumption Soft drink is a typical consumer product purchased by individuals to
quench thirst and secondly for refreshment Searching for the point of Indian soft
drinks we first document on Gold Spot this was the first brand soft drink in India It
was introduced by PARLE during later part of 40rsquos
Cola giant Coca-Cola was the first foreign soft drink to be introduced in India in
1965 Coca-Cola make a very good beginning and dominated the whole scheme right
from the word go It (Coca-Cola) faced no competition at that time COCA COLA
entered India in the year 1993 In collaboration with PARLE INDIA LTD
The marketing people did not even receive to publicize Coca-Cola for it sold first
like probability not-cakes This extraordinary success of soft drinks can be
attributed to the following factors-
Absence of contemporary competitive brand
Euphoric image built up in the Western countries proceeded the entry
into Indian Market and
Indians are very found by nature of foreign goods services etc due to
prolonged foreign rules
Parle Exports (P) Ltd later in 1970 introduced Limca Lemony Soft drinks Before
Limca introduce they had tentatively introduced Cola Pepino which they had to
soon withdraw in the face of battering confrontation with Coca-Cola
0
Three of four groups of Indians companies who had the required production capacity
started their own brands of Cola Lemon Orange but failed to achieve their goal on a
national basis India always has love and hate relationship with MNCrsquos which gave a
significant opportunities to soft drink industries in India when Coca-Cola decided to
windup its operation in 1977 rather than bowing to the Indian government insisting
on-
Dilution of equity as the government felt that lots of foreign currency was
being wasted
Manufacturing of the top-secret concentration in India
Disclose of the chemical composition of the essence
This left a large vacuum in the popular soft drink market and a vista was opened to
any company with the requisite technical marketing and organizational skills
The exit of Coca-Cola from India in 1977 accelerated the growth of several Indian
Soft Drink New soft drink in the form of Tetra pack entered the market among
Frooti Jump-In and Treetop were the prominent once Till 1977 their equipped
bottling plants and the distribution network a longing to be of no use It took them one
year to develop new formula to survive and gradually came up with Campa Lemon
Orange and Cola that order
However Parle the pioneer in the soft drinks blazed its way to national prominence
with their product ldquoThumps Uprdquo bearing the slogan ldquoHappy Days Are Here Againrdquo
This particular slogan helped to win over the loyalists or addicts to Coca-Cola who
was in the state of ldquoCola Shockrdquo or Cola Depression Soon the Indian Soft drink
industry started at a phenomenal rate and all Parle Products Gold Spot Limca and
Thumps Up became the brand leader in their own segment In spite of all these the
drink market still has large gap as claim by soft drink manufacturers To fill these
gaps there are many soft drinks concentrate and squashes flooded the market The
Indian soft markets basically offered three flavors ie Orange Lemon and Cola
0
Words of Ministry of Food Processing
Industry for Soft Drink Industry
The 50-bn-rupee soft drink industry is growing now at 6 to 7 annually In India
Coke and Pepsi have a combined market share of around 95 directly or through
franchisees Campa Cola has a 1 share and the rest is divided among local
players Industry watchers say fake products also account for a good share of the
balance There are about 110 soft drink producing units (60 being owned by
Indian bottlers) in the country employing about 125000 people There are two
distinct segments of the market cola and non-cola drinks The cola segment claims
a share of 62 while the non-cola segment includes soda clear lime cloudy lime
and drinks with orange and mango flavors
The per capita consumption of soft drinks in India is around 5 to 6 bottles (same as
Nepals) compared to Pakistans 17 bottles Sri Lankas 21 Thailands 73 the
Philippines 173 and Mexico 605 The industry contributes over Rs 12 bn to the
exchequer and exports goods worth Rs 2 bn It also supports growth of industries
like glass refrigeration transportation paper and sugar The Department of Food
Processing Industries had stipulated that contains-no-fruit-juice labels be pasted
on returnable glass bottles About 85 of the soft drinks are currently sold in
returnable bottles There was a floating stock of about 1000 mn bottles valued at
Rs 6 bn If the industry were to abide by the new guidelines it would have to
invest in new bottles resulting in a cost outgo of Rs 5 bn Neither Coke nor Pepsi
is in a position to invest such a large amount
0
Around 400000 tonnes of raw material would be required to replace the existing
stock of bottles Instead the soft drink industry suggested that a seven-year
moratorium be extended to the industry so that it can incorporate the change in a
phased manner There is no such mandatory requirement anywhere in the world to
specifically label the glass surface of returnable bottles The government has
decided to extend the date for replacing the bottles to end-march 2006 In the
meantime the producers have shifted substantially to the use of PET bottles
Soft and aerated drinks were considered products for the middle class and the
affluent That segregation is no more valid Soft and aerated drinks are consumed
by all except those who cannot afford to buy any drink An NCAER study says
that 91 soft drink sales are made to the lower middle and upper middle classes
The soft drink industry has been urging the government to categorize aerated
waters (soft drinks) equitably with other consumer products of mass consumption
and remove special excise duty
The industry estimates that the beverage market should grow at twice the rate of
GDP growth The Indian market should have therefore grown by at least 12
However it has been growing at a rate of about 6 In contrast the Chinese
market grew by 16 a year while the Russian market expanded at almost four
times the rate of growth of the Indian market
It may be recalled that Coca-Cola the worlds number one player was present in
India for a long time in collaboration with an Indian producer but was thrown out
in the late 1970s It reappeared in India following the economic liberalization era
- but after its rival worlds number two had already entered in a big way following
a long and tough fight against the opposition from the domestic producers When
Coca-Cola re-entered it installed a new milestone It acquired the well flourishing
0
Indias top player Parle Since then it is basically a fight between the two
American giants Others are playing a peripheral role as adjuncts to the two
MNCs Worlds third biggest player Cadbury Schweppes had also made an
entry but was gobbled up by Coca-Cola When Coca-Cola acquired Parle brands it
was in fact buying the bottling facilities the marketing network and the
established consumer preference during the market build-up The brands were a
drag on the global brand Since Coca-Cola was not interested in brands (like
Thumps Up) it did not promote them The result at least in the short run was a
loss of the market to the competitor Coca-Cola decided to market more effectively
the Parle brands It had in its armoury Coke Thumps Up Limca and Fanta The
latest to enter market was Parlersquos erstwhile Rimzim alongside Portello a black
currant flavoured drink very popular in Srilanka
Coca-Cola operates through 35 plants and 16 franchisees throughout the country
while PepsiCo has 20 plants but it has 7 more franchisees at 23 to 16 of its rival
Coca-Cola claims a market share of 51 while Pepsi has a share of 46 The
claims however remain disputed The other smaller players like Pure Drinks Ltd
claim the rest of the market The shares of the two lead players are consolidated
figures which include the respective bottlers Coca-Cola had approached the
government for a five year extension for divesting 49 equity in its bottling
subsidiary Hindustan Coca-Cola Holdings It had set up the marketing subsidiary
as part of its strategy to integrate all its bottling operations both company-
owned and franchisee bottlers apparently keeping in line with its global policy
All together it had bought initially over 38 franchisee bottlers
Kandhari Beverages coke bottlers for north have been eyeing to lift a stake in
Coca-Cola India Coca-Cola had filed an application to offload 49 stake of its
0
bottling operations in favour of their Indian operators Besides Kandhari three
other bottlers one each from Uttar Pradesh Gujarat and Jammu were lined up to
invest in Hindustan Coca-Cola Holding Kandhari has already invested Rs 300 mn
in 1999 and 2000 to upgrade its capacity The total investment by all the four
was expected to be Rs 1000 mn Both Coca-Cola and PepsiCo planned for the
launch of lemon-flavored versions of their products Both have been expanding
their non-carbonated drink line-ups as consumers seem to be shifting away from
carbonated soft drinks PepsiCo is deliberating whether to come out with Pepsi
Twist a cola mixed with lemon But while both companies have juice sports
drinks bottled water and other such drinks in their line-ups neither coke nor Pepsi
has launched a new national variety of a cola-flavoured carbonated soft drink in
years
PepsiCo had achieved Rs 3 bn worth of exports which include processed foods
basmati rice guar gum and soft drinks concentrate PepsiCo completed the second
phase of its expansion and with this expansion PepsiCo was to explore the
possibility of expanding the export of concentrates to more countries in addition to
the exports to Russia and other South Asian countries
Pepsi India has entered into a marketing tie up with Hindustan Lever to promote
sales of soft drinks through Pepsi-HLL network of vending machines and
fountains The major soft drink brand in the Pepsi stable are Pepsi 7UP Mirinda
Tropicana and Acquafina
As a major strategic departure both MNCs were expanding their brand range
Consequent to some diversifying moves at present the sales ratio of Coca-Cola
between soft drinks and other beverages is 955 The company intended to change
this to 8020 in the next three years Its juice brand Maaza - acquired from Parle a
0
few years ago - is being given a major thrust It has plans to go in for canned
coffee iced tea and purified categories under expansion schemes It has already
launched its bottled water brand Kinley in the Indian market Besides it is
intending to acquire domestic brands in the non-carbonated beverages segment
The global deal between Coca-Cola and PampG to form a snacks and beverages joint
venture company was reported to have slipped into rough weather The
PampG brand of potato wafer Pringles seemed to be faced with distribution
problems in India PampG had globally tied up with Coca-Cola to form a stand-alone
juice and snacks company The new firm is focused on developing and marketing
new juices juice based beverages and snacks on a global basis The Sharjah-based
Allied Beverages was pushing its Ahlan brand in India having entered the market
in mid-2000 Its target was carbonated drinks market in PET bottles Its plans
were to launch a PET bottle in the popular 300 ml category Ahlan expected to
gain a 12 share of the total PET bottle market in northern India Of the total
market PET bottle segment is approximately 12 Presently Allied Beverages
has a manufacturing unit at Dharuhera in Haryana The product range includes
carbonated drinks - cola orange lemon and soda in three pack sizes - 500 ml
1500 ml and 2000 ml Allied Beverages sells non-carbonated drinks in 200 ml
foodgrade cups priced at Rs 7 in its portfolio available in four different flavors
The companys future plans include pulp-based fruit drinks in flavors which will
be available in 200 ml non-returnable glass bottles
IFB Agro Industries has handed over the distribution rights of Cadbury Schweppes
in favour of Coco-Cola India following the global takeover of Schweppes
beverages by Coke The company still retains the bottling rights for the beverages
0
It was noticed for the first time during the summer of 2004 that soft drink
companies were registering a slower growth in the sale of bottled water at 20
compared to 35 in case of drinks
Lead Players amp Alliances
Company Share ()
Aradhana 34
Varun Beverages 15
Devyani Beverages 9
Kandhari Beverages 7
Ludhiana Beverages 7
Sri Sarvarya Sugars 6
Pearl Drinks 5
Pearl Beverages 6
0
Leading Brands
Coca Cola Thums Up Limca Fanta Gold Spot Rim Zim Maaza Pepsi Mirinda
7UP Mangola Slice Dukes Lemonada Crush Canada Dry Campa
Market Growth Rates
1990-91 - 1996-97 941996-97 - 2001-02 782001-02 - 2006-07 652004-05 - 2009-10 542009-10 - 2014-15 35 Sensitivity Coefficient 52Market Segmentation
Segment Share ()North 24East 18West 32South 26Rural 30Urban 70
0
Market Structure
Product Variation
Company Share ()Cola Drinks Thums Up 29Coca Cola 25Pepsi 18Non Cola Drinks Gold Spot 2Fanta 9Mirinda 8Limca 9Overall Colas 62Lemon Cloudy 7Clear 3Orange 17Mango 3Soda 8
(wwwmofpinicin)
0
Robust growth continues
The soft drinks industry continued on its path to recovery from the low growth seen between 2005 and 2006 with higher volume growth in 2008 than that seen in 2007 The mature sectors of bottled water fruitvegetable juice and carbonates saw a dynamic year with companies refreshing their productsrsquo brand image and packaging to attract new consumers Emerging product categories such as energy drinks and reconstituted 100 juice saw high double-digit growth rates as companies increased their productsrsquo penetration in India Off-trade volume growth was slightly higher than on-trade volume growth as convenient on-the-go packaging company sponsored chillers in kiranas and attractive supermarket displays fuelled off-trade sales across the market
Companies reposition their brands and update product portfolios
With the industry back on the upward growth curve companies refreshed their brands by introducing new and more premium packaging designs pack sizes and communication campaigns In 2008 bottled water was especially dynamic with all the major national brands following the cue of Bislerirsquos rebranding in late 2007 Carbonates and juice drinks were also reinvigorated with new pack sizes that targeted on-the-go consumption by young adults With ldquonaturally healthyrdquo becoming a key focus for consumers and manufacturers fruitvegetable drinks companies focused their efforts on highlighting their productsrsquo fresh fruit content and health attributes Companies put in motion plans to extend their product portfolios to emerging categories such as 100 juice energy drinks and flavoured water
Indian Product Range
0
Flavour Ingredients Pack Product Company
Cola Cola Flavour carbonated water sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Coke
Thumsup
RC
Pepsi
Coca-Coal
RC cola
Pepsi
Orange Orange Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Fanta
Mirinda
Coca-Cola
Pepsi
Fruit Juice Mango Pulp+ Treated water+ sugar
250 ML Maaza
Minute Maid Pullpy Orange
Slice
Tropicana
Appy Fizz
Real
Coca-Cola
Pepsi
Appy FizzDabur
Cloudy Lemon
Lemon Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Limca
LMN
Mirinda Lemon
Nimbooz
Coca-Cola
Parle agro
Pepsi
Clear Lemon Lemon Flavour+ Carbonated Water + Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Sprite
7rsquoUp
Dew
Coca-Cola
Pepsi
Rural Market Scenario
0
Indian Rural Market
The Indian growth story is now spreading itself to Indias hinterlands Rural India home to about two-thirds of the countryrsquos 1 billion population is not just witnessing an increase in its income but also in consumption and production The interim Budgets focus on extending the National Rural Employment Guarantee Act (NREGA) to all states with a US$ 583 billion outlay for 2009-10 would benefit the rural economy The rural economy got a further boost with the farmer loan waiver of US$ 1386 billion and the ambitious Bharat Nirman Programme with an outlay of US$ 3484 billion for improving rural infrastructure Additionally the rural economy has not been impacted by the global economic slowdown according to a recent study by the Rural Marketing Association of India (RMAI) The study found that the rural and small town economy which accounts for 60 per cent of Indiarsquos income has remained insulated from the economic slowdown Moreover rural incomes are on the rise driven largely due to continuous growth in agriculture for four consecutive years According to a McKinsey survey conducted in 2007 the rural India market would grow almost four times from its existing size in 2007 which was estimated at US$ 577 billion Furthermore high-end brands like Tommy Hilfiger are also bullish on small towns Small towns currently contribute around 20 per cent of the brandrsquos sales This could go up to one-third in two yearsrsquo time
lsquoRuralrsquo ndash 75 population engaged in agriculture related activity According to industry estimates 70 of population engaged in agricultural
activity1048699 700 million people (Aug 2002)1048699 13rd of countryrsquos GNP1048699 450 districts 630000 villages approx
Rural India is also characterized by growing affluenceagricultural output increasingly to early 215 millions tones in 2004 compared to 176 millions in 1991
Key to success in Rural India
0
Physical Distribution Channel Management Promotion and Marketing Communication
Rural Marketing Key Strategy
Three As
Availability Capacity expansion ndash 25 prod lines and doubled bottle capacity Unique and different distribution strategy ndash hub amp spoke
distribution Coverage of 158342 villages by Aug 2003 (81383 in 2001) 200000 refrigerators to rural retailers
Affordability Introduction of 200ml bottle Priced at Rs 7 closed the gap
between Coke and basic refreshments
Acceptability Mass media marketing Launched TVCs targeted at rural consumers
0
0
LITERATURE REVIEW
1-A study of factors responsible for brand preference in fmcg sectorrdquo The purpose of this paper is the study of factors responsible for brand preference in fmcg products increasing competition more due to globalization is motivating many companies to base their strategies almost entirely on building brands Brand preference means to compare the different brands and opt for the most preferred brand This brand preference is influenced by various factorsAccording to this study many factors were find out for preferring a brand likeBrand persona Brand constancyBrand loftinessBrand valueIn the identification of factors affecting the brand preference it was concluded that brand persona is the most effective factor that affects the brand preference This brand persona deals with the personality aspects or the external attributes of brand thus it can be said that consumer prefer any brand by looking at the external attributes of a brand
-journal of ims vol 5 no1 jan-june 2008
2-Colour and flavour rule consumer preferences Study
The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse ldquoCompanies need to continuously innovate to maintain market leadershiprdquo wrote the researchers ldquoWhen the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumersrdquo ldquoThis experiment
0
showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approachesrdquo The study also demonstrates the importance of flavour and colour selection for new products
The global flavours market was been valued at some US$18bn in 2006 (Business Insights) Meanwhile the value of the international colourings market was estimated at around $115bn in 2007 (euro731m) up 25 per cent from $107bn (680m) in 2004 according to Leatherhead Food International (LFI) Natural colours now make up 31 per cent of the colourings market compared with 40 per cent for synthetics according to LFI
Bombarding the senses
By choosing to formulate a new beverage the researchers noted that the new product would need to be differentiated by improving the sensory characteristics
Four factors were identified for the formulation four colour intensities) three flavourings two label types (soft versus hard) and two pack sizes (standard versus oversize) By using both quantitative (hedonic testing) and qualitative (focus groups) approaches the researchers found that ldquothe main factors which drive consumer preference for this concept are colour intensity and flavouringrdquo Indeed colour intensity accounted for 43 per cent and flavour 32 per cent of the consumersrsquo overall liking ldquoPack size and label type are taken into account by the consumer to a lesser extendrdquo they added ldquoThis methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumersrsquo expectation it has now to be reproduced as every brand concept and product is a unique combination designed for a specific consumer grouprdquo concluded the researchers
Source Food Quality and PreferenceVolume 19 Issue 8 Pages 719-726By Stephen Daniells 07-Oct-2008
0
3- Taste or health A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits Data were analyzed 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 saltiness drinks flavor and greasiness These variables emerged as the first factor in the analysis suggesting 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 respondents attitudes toward fat in the diet Factor 3 comprised two remaining sensory attributes (color 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
Source-Beverly J Tepper and Amy C Trail Journal of Food Science and Technology 15 September 1998
Rural Consumer BehaviorConsumer Buyer Behavior refers to the buying behavior of final consumers ndash individuals and households who buy goods and services for personal consumption All of these final consumers combined make up the consumer market The consumer market in this case is Rural India About 70 of Indias population lives in rural areas There are more than 600000 villages in the country as against about 300 cities and 4600 towns Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use Villagers react differently to different products colors sizes etc in different parts of India Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India Thus it is important to study the thought process that goes into making a purchase decision so that marketers can reach this huge untapped segment
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
Table of ContentAcknowledgements 01
Preface 02
Objective of study 03
History of the Industry 04
Words of Ministry of Food Processing Industry for Soft Drink Industry 06
Robust growth continues 14
Companies reposition their brands and update product portfolios 14
Main Brands of the Industry 15
Rural Market Scenario 16
Key to success in Rural India 17
Literacy Review 19
Factors influencing buying behavior 22
Factors influencing buying behavior 23
Rural Branding 24
Research Design 25
Source of Data collection 26
Findings 27
Suggestions 28
Conclusion 29
Bibliography 30
0
Acknowledgements
I am highly indebted to my project mentor Prof Deepa
Agnihotri for her continuous support supervision
motivation and guidance through out the tenure of my
project in spite of her hectic schedule who truly remained
driving spirit in my project and her experience gave me the
light in handling research project and helped me in clarifying
the abstruse concepts requiring knowledge and perception
handling critical situations and in understanding the
objective of my work
(Ravi Garg)
0
Preface
Market provides a key to gain actual success only to those brands which match best to the current environment ie imperative which can be delivered what are the people needs and they are ready to buy at the right time without any delay It is perfectly true but this also depends on availability of good quality products and excellent taste and services which further attract and add a golden opportunity for huge sales
This also depends on the good planning approach and provide ample opportunity plus sufficient amount of products for sales in the coming next financial year
This project introduces study of consumerrsquos preferences for Soft Drink Industry After going through a detail analysis of market behavior and future prospect it may also provide an opportunity to the players those are playing a vital role in the industry to frame a good future plan to satisfy maximum needs of the customers and established its guiding role in throughout the country as a whole The study report will also provide an opportunity to delineate its market potential business areas products amp services are to be offered by the company to the customers
This study report also provides the various factors affecting the services Marketing Division of a soft drink company has to keep in mind various factors specially while preparing a plan for marketing its product or services Detail description along with analysis of surveyed data is being presented in this report
0
Aims and Objectives of the study
To study the profile of soft drink consumers
To study the behavioral pattern of rural consumer for soft drink products
To identify their level of satisfaction in the purchase of various soft drink products
To determine the various factors influencing the behavior of soft drink consumer
0
History of the Industry
SOFT DRINK INDUSTRIES IN INDIA- A soft drink is a non-alcoholic
beverage It is artificially flavored and contains no fruit or pulp India with population
of more than 100 crores is potentially one of the largest consumer markets in the
world after China The consumer market can be defined as the market for products
and services that are purchased by individuals as households goods for their personal
consumption Soft drink is a typical consumer product purchased by individuals to
quench thirst and secondly for refreshment Searching for the point of Indian soft
drinks we first document on Gold Spot this was the first brand soft drink in India It
was introduced by PARLE during later part of 40rsquos
Cola giant Coca-Cola was the first foreign soft drink to be introduced in India in
1965 Coca-Cola make a very good beginning and dominated the whole scheme right
from the word go It (Coca-Cola) faced no competition at that time COCA COLA
entered India in the year 1993 In collaboration with PARLE INDIA LTD
The marketing people did not even receive to publicize Coca-Cola for it sold first
like probability not-cakes This extraordinary success of soft drinks can be
attributed to the following factors-
Absence of contemporary competitive brand
Euphoric image built up in the Western countries proceeded the entry
into Indian Market and
Indians are very found by nature of foreign goods services etc due to
prolonged foreign rules
Parle Exports (P) Ltd later in 1970 introduced Limca Lemony Soft drinks Before
Limca introduce they had tentatively introduced Cola Pepino which they had to
soon withdraw in the face of battering confrontation with Coca-Cola
0
Three of four groups of Indians companies who had the required production capacity
started their own brands of Cola Lemon Orange but failed to achieve their goal on a
national basis India always has love and hate relationship with MNCrsquos which gave a
significant opportunities to soft drink industries in India when Coca-Cola decided to
windup its operation in 1977 rather than bowing to the Indian government insisting
on-
Dilution of equity as the government felt that lots of foreign currency was
being wasted
Manufacturing of the top-secret concentration in India
Disclose of the chemical composition of the essence
This left a large vacuum in the popular soft drink market and a vista was opened to
any company with the requisite technical marketing and organizational skills
The exit of Coca-Cola from India in 1977 accelerated the growth of several Indian
Soft Drink New soft drink in the form of Tetra pack entered the market among
Frooti Jump-In and Treetop were the prominent once Till 1977 their equipped
bottling plants and the distribution network a longing to be of no use It took them one
year to develop new formula to survive and gradually came up with Campa Lemon
Orange and Cola that order
However Parle the pioneer in the soft drinks blazed its way to national prominence
with their product ldquoThumps Uprdquo bearing the slogan ldquoHappy Days Are Here Againrdquo
This particular slogan helped to win over the loyalists or addicts to Coca-Cola who
was in the state of ldquoCola Shockrdquo or Cola Depression Soon the Indian Soft drink
industry started at a phenomenal rate and all Parle Products Gold Spot Limca and
Thumps Up became the brand leader in their own segment In spite of all these the
drink market still has large gap as claim by soft drink manufacturers To fill these
gaps there are many soft drinks concentrate and squashes flooded the market The
Indian soft markets basically offered three flavors ie Orange Lemon and Cola
0
Words of Ministry of Food Processing
Industry for Soft Drink Industry
The 50-bn-rupee soft drink industry is growing now at 6 to 7 annually In India
Coke and Pepsi have a combined market share of around 95 directly or through
franchisees Campa Cola has a 1 share and the rest is divided among local
players Industry watchers say fake products also account for a good share of the
balance There are about 110 soft drink producing units (60 being owned by
Indian bottlers) in the country employing about 125000 people There are two
distinct segments of the market cola and non-cola drinks The cola segment claims
a share of 62 while the non-cola segment includes soda clear lime cloudy lime
and drinks with orange and mango flavors
The per capita consumption of soft drinks in India is around 5 to 6 bottles (same as
Nepals) compared to Pakistans 17 bottles Sri Lankas 21 Thailands 73 the
Philippines 173 and Mexico 605 The industry contributes over Rs 12 bn to the
exchequer and exports goods worth Rs 2 bn It also supports growth of industries
like glass refrigeration transportation paper and sugar The Department of Food
Processing Industries had stipulated that contains-no-fruit-juice labels be pasted
on returnable glass bottles About 85 of the soft drinks are currently sold in
returnable bottles There was a floating stock of about 1000 mn bottles valued at
Rs 6 bn If the industry were to abide by the new guidelines it would have to
invest in new bottles resulting in a cost outgo of Rs 5 bn Neither Coke nor Pepsi
is in a position to invest such a large amount
0
Around 400000 tonnes of raw material would be required to replace the existing
stock of bottles Instead the soft drink industry suggested that a seven-year
moratorium be extended to the industry so that it can incorporate the change in a
phased manner There is no such mandatory requirement anywhere in the world to
specifically label the glass surface of returnable bottles The government has
decided to extend the date for replacing the bottles to end-march 2006 In the
meantime the producers have shifted substantially to the use of PET bottles
Soft and aerated drinks were considered products for the middle class and the
affluent That segregation is no more valid Soft and aerated drinks are consumed
by all except those who cannot afford to buy any drink An NCAER study says
that 91 soft drink sales are made to the lower middle and upper middle classes
The soft drink industry has been urging the government to categorize aerated
waters (soft drinks) equitably with other consumer products of mass consumption
and remove special excise duty
The industry estimates that the beverage market should grow at twice the rate of
GDP growth The Indian market should have therefore grown by at least 12
However it has been growing at a rate of about 6 In contrast the Chinese
market grew by 16 a year while the Russian market expanded at almost four
times the rate of growth of the Indian market
It may be recalled that Coca-Cola the worlds number one player was present in
India for a long time in collaboration with an Indian producer but was thrown out
in the late 1970s It reappeared in India following the economic liberalization era
- but after its rival worlds number two had already entered in a big way following
a long and tough fight against the opposition from the domestic producers When
Coca-Cola re-entered it installed a new milestone It acquired the well flourishing
0
Indias top player Parle Since then it is basically a fight between the two
American giants Others are playing a peripheral role as adjuncts to the two
MNCs Worlds third biggest player Cadbury Schweppes had also made an
entry but was gobbled up by Coca-Cola When Coca-Cola acquired Parle brands it
was in fact buying the bottling facilities the marketing network and the
established consumer preference during the market build-up The brands were a
drag on the global brand Since Coca-Cola was not interested in brands (like
Thumps Up) it did not promote them The result at least in the short run was a
loss of the market to the competitor Coca-Cola decided to market more effectively
the Parle brands It had in its armoury Coke Thumps Up Limca and Fanta The
latest to enter market was Parlersquos erstwhile Rimzim alongside Portello a black
currant flavoured drink very popular in Srilanka
Coca-Cola operates through 35 plants and 16 franchisees throughout the country
while PepsiCo has 20 plants but it has 7 more franchisees at 23 to 16 of its rival
Coca-Cola claims a market share of 51 while Pepsi has a share of 46 The
claims however remain disputed The other smaller players like Pure Drinks Ltd
claim the rest of the market The shares of the two lead players are consolidated
figures which include the respective bottlers Coca-Cola had approached the
government for a five year extension for divesting 49 equity in its bottling
subsidiary Hindustan Coca-Cola Holdings It had set up the marketing subsidiary
as part of its strategy to integrate all its bottling operations both company-
owned and franchisee bottlers apparently keeping in line with its global policy
All together it had bought initially over 38 franchisee bottlers
Kandhari Beverages coke bottlers for north have been eyeing to lift a stake in
Coca-Cola India Coca-Cola had filed an application to offload 49 stake of its
0
bottling operations in favour of their Indian operators Besides Kandhari three
other bottlers one each from Uttar Pradesh Gujarat and Jammu were lined up to
invest in Hindustan Coca-Cola Holding Kandhari has already invested Rs 300 mn
in 1999 and 2000 to upgrade its capacity The total investment by all the four
was expected to be Rs 1000 mn Both Coca-Cola and PepsiCo planned for the
launch of lemon-flavored versions of their products Both have been expanding
their non-carbonated drink line-ups as consumers seem to be shifting away from
carbonated soft drinks PepsiCo is deliberating whether to come out with Pepsi
Twist a cola mixed with lemon But while both companies have juice sports
drinks bottled water and other such drinks in their line-ups neither coke nor Pepsi
has launched a new national variety of a cola-flavoured carbonated soft drink in
years
PepsiCo had achieved Rs 3 bn worth of exports which include processed foods
basmati rice guar gum and soft drinks concentrate PepsiCo completed the second
phase of its expansion and with this expansion PepsiCo was to explore the
possibility of expanding the export of concentrates to more countries in addition to
the exports to Russia and other South Asian countries
Pepsi India has entered into a marketing tie up with Hindustan Lever to promote
sales of soft drinks through Pepsi-HLL network of vending machines and
fountains The major soft drink brand in the Pepsi stable are Pepsi 7UP Mirinda
Tropicana and Acquafina
As a major strategic departure both MNCs were expanding their brand range
Consequent to some diversifying moves at present the sales ratio of Coca-Cola
between soft drinks and other beverages is 955 The company intended to change
this to 8020 in the next three years Its juice brand Maaza - acquired from Parle a
0
few years ago - is being given a major thrust It has plans to go in for canned
coffee iced tea and purified categories under expansion schemes It has already
launched its bottled water brand Kinley in the Indian market Besides it is
intending to acquire domestic brands in the non-carbonated beverages segment
The global deal between Coca-Cola and PampG to form a snacks and beverages joint
venture company was reported to have slipped into rough weather The
PampG brand of potato wafer Pringles seemed to be faced with distribution
problems in India PampG had globally tied up with Coca-Cola to form a stand-alone
juice and snacks company The new firm is focused on developing and marketing
new juices juice based beverages and snacks on a global basis The Sharjah-based
Allied Beverages was pushing its Ahlan brand in India having entered the market
in mid-2000 Its target was carbonated drinks market in PET bottles Its plans
were to launch a PET bottle in the popular 300 ml category Ahlan expected to
gain a 12 share of the total PET bottle market in northern India Of the total
market PET bottle segment is approximately 12 Presently Allied Beverages
has a manufacturing unit at Dharuhera in Haryana The product range includes
carbonated drinks - cola orange lemon and soda in three pack sizes - 500 ml
1500 ml and 2000 ml Allied Beverages sells non-carbonated drinks in 200 ml
foodgrade cups priced at Rs 7 in its portfolio available in four different flavors
The companys future plans include pulp-based fruit drinks in flavors which will
be available in 200 ml non-returnable glass bottles
IFB Agro Industries has handed over the distribution rights of Cadbury Schweppes
in favour of Coco-Cola India following the global takeover of Schweppes
beverages by Coke The company still retains the bottling rights for the beverages
0
It was noticed for the first time during the summer of 2004 that soft drink
companies were registering a slower growth in the sale of bottled water at 20
compared to 35 in case of drinks
Lead Players amp Alliances
Company Share ()
Aradhana 34
Varun Beverages 15
Devyani Beverages 9
Kandhari Beverages 7
Ludhiana Beverages 7
Sri Sarvarya Sugars 6
Pearl Drinks 5
Pearl Beverages 6
0
Leading Brands
Coca Cola Thums Up Limca Fanta Gold Spot Rim Zim Maaza Pepsi Mirinda
7UP Mangola Slice Dukes Lemonada Crush Canada Dry Campa
Market Growth Rates
1990-91 - 1996-97 941996-97 - 2001-02 782001-02 - 2006-07 652004-05 - 2009-10 542009-10 - 2014-15 35 Sensitivity Coefficient 52Market Segmentation
Segment Share ()North 24East 18West 32South 26Rural 30Urban 70
0
Market Structure
Product Variation
Company Share ()Cola Drinks Thums Up 29Coca Cola 25Pepsi 18Non Cola Drinks Gold Spot 2Fanta 9Mirinda 8Limca 9Overall Colas 62Lemon Cloudy 7Clear 3Orange 17Mango 3Soda 8
(wwwmofpinicin)
0
Robust growth continues
The soft drinks industry continued on its path to recovery from the low growth seen between 2005 and 2006 with higher volume growth in 2008 than that seen in 2007 The mature sectors of bottled water fruitvegetable juice and carbonates saw a dynamic year with companies refreshing their productsrsquo brand image and packaging to attract new consumers Emerging product categories such as energy drinks and reconstituted 100 juice saw high double-digit growth rates as companies increased their productsrsquo penetration in India Off-trade volume growth was slightly higher than on-trade volume growth as convenient on-the-go packaging company sponsored chillers in kiranas and attractive supermarket displays fuelled off-trade sales across the market
Companies reposition their brands and update product portfolios
With the industry back on the upward growth curve companies refreshed their brands by introducing new and more premium packaging designs pack sizes and communication campaigns In 2008 bottled water was especially dynamic with all the major national brands following the cue of Bislerirsquos rebranding in late 2007 Carbonates and juice drinks were also reinvigorated with new pack sizes that targeted on-the-go consumption by young adults With ldquonaturally healthyrdquo becoming a key focus for consumers and manufacturers fruitvegetable drinks companies focused their efforts on highlighting their productsrsquo fresh fruit content and health attributes Companies put in motion plans to extend their product portfolios to emerging categories such as 100 juice energy drinks and flavoured water
Indian Product Range
0
Flavour Ingredients Pack Product Company
Cola Cola Flavour carbonated water sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Coke
Thumsup
RC
Pepsi
Coca-Coal
RC cola
Pepsi
Orange Orange Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Fanta
Mirinda
Coca-Cola
Pepsi
Fruit Juice Mango Pulp+ Treated water+ sugar
250 ML Maaza
Minute Maid Pullpy Orange
Slice
Tropicana
Appy Fizz
Real
Coca-Cola
Pepsi
Appy FizzDabur
Cloudy Lemon
Lemon Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Limca
LMN
Mirinda Lemon
Nimbooz
Coca-Cola
Parle agro
Pepsi
Clear Lemon Lemon Flavour+ Carbonated Water + Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Sprite
7rsquoUp
Dew
Coca-Cola
Pepsi
Rural Market Scenario
0
Indian Rural Market
The Indian growth story is now spreading itself to Indias hinterlands Rural India home to about two-thirds of the countryrsquos 1 billion population is not just witnessing an increase in its income but also in consumption and production The interim Budgets focus on extending the National Rural Employment Guarantee Act (NREGA) to all states with a US$ 583 billion outlay for 2009-10 would benefit the rural economy The rural economy got a further boost with the farmer loan waiver of US$ 1386 billion and the ambitious Bharat Nirman Programme with an outlay of US$ 3484 billion for improving rural infrastructure Additionally the rural economy has not been impacted by the global economic slowdown according to a recent study by the Rural Marketing Association of India (RMAI) The study found that the rural and small town economy which accounts for 60 per cent of Indiarsquos income has remained insulated from the economic slowdown Moreover rural incomes are on the rise driven largely due to continuous growth in agriculture for four consecutive years According to a McKinsey survey conducted in 2007 the rural India market would grow almost four times from its existing size in 2007 which was estimated at US$ 577 billion Furthermore high-end brands like Tommy Hilfiger are also bullish on small towns Small towns currently contribute around 20 per cent of the brandrsquos sales This could go up to one-third in two yearsrsquo time
lsquoRuralrsquo ndash 75 population engaged in agriculture related activity According to industry estimates 70 of population engaged in agricultural
activity1048699 700 million people (Aug 2002)1048699 13rd of countryrsquos GNP1048699 450 districts 630000 villages approx
Rural India is also characterized by growing affluenceagricultural output increasingly to early 215 millions tones in 2004 compared to 176 millions in 1991
Key to success in Rural India
0
Physical Distribution Channel Management Promotion and Marketing Communication
Rural Marketing Key Strategy
Three As
Availability Capacity expansion ndash 25 prod lines and doubled bottle capacity Unique and different distribution strategy ndash hub amp spoke
distribution Coverage of 158342 villages by Aug 2003 (81383 in 2001) 200000 refrigerators to rural retailers
Affordability Introduction of 200ml bottle Priced at Rs 7 closed the gap
between Coke and basic refreshments
Acceptability Mass media marketing Launched TVCs targeted at rural consumers
0
0
LITERATURE REVIEW
1-A study of factors responsible for brand preference in fmcg sectorrdquo The purpose of this paper is the study of factors responsible for brand preference in fmcg products increasing competition more due to globalization is motivating many companies to base their strategies almost entirely on building brands Brand preference means to compare the different brands and opt for the most preferred brand This brand preference is influenced by various factorsAccording to this study many factors were find out for preferring a brand likeBrand persona Brand constancyBrand loftinessBrand valueIn the identification of factors affecting the brand preference it was concluded that brand persona is the most effective factor that affects the brand preference This brand persona deals with the personality aspects or the external attributes of brand thus it can be said that consumer prefer any brand by looking at the external attributes of a brand
-journal of ims vol 5 no1 jan-june 2008
2-Colour and flavour rule consumer preferences Study
The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse ldquoCompanies need to continuously innovate to maintain market leadershiprdquo wrote the researchers ldquoWhen the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumersrdquo ldquoThis experiment
0
showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approachesrdquo The study also demonstrates the importance of flavour and colour selection for new products
The global flavours market was been valued at some US$18bn in 2006 (Business Insights) Meanwhile the value of the international colourings market was estimated at around $115bn in 2007 (euro731m) up 25 per cent from $107bn (680m) in 2004 according to Leatherhead Food International (LFI) Natural colours now make up 31 per cent of the colourings market compared with 40 per cent for synthetics according to LFI
Bombarding the senses
By choosing to formulate a new beverage the researchers noted that the new product would need to be differentiated by improving the sensory characteristics
Four factors were identified for the formulation four colour intensities) three flavourings two label types (soft versus hard) and two pack sizes (standard versus oversize) By using both quantitative (hedonic testing) and qualitative (focus groups) approaches the researchers found that ldquothe main factors which drive consumer preference for this concept are colour intensity and flavouringrdquo Indeed colour intensity accounted for 43 per cent and flavour 32 per cent of the consumersrsquo overall liking ldquoPack size and label type are taken into account by the consumer to a lesser extendrdquo they added ldquoThis methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumersrsquo expectation it has now to be reproduced as every brand concept and product is a unique combination designed for a specific consumer grouprdquo concluded the researchers
Source Food Quality and PreferenceVolume 19 Issue 8 Pages 719-726By Stephen Daniells 07-Oct-2008
0
3- Taste or health A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits Data were analyzed 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 saltiness drinks flavor and greasiness These variables emerged as the first factor in the analysis suggesting 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 respondents attitudes toward fat in the diet Factor 3 comprised two remaining sensory attributes (color 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
Source-Beverly J Tepper and Amy C Trail Journal of Food Science and Technology 15 September 1998
Rural Consumer BehaviorConsumer Buyer Behavior refers to the buying behavior of final consumers ndash individuals and households who buy goods and services for personal consumption All of these final consumers combined make up the consumer market The consumer market in this case is Rural India About 70 of Indias population lives in rural areas There are more than 600000 villages in the country as against about 300 cities and 4600 towns Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use Villagers react differently to different products colors sizes etc in different parts of India Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India Thus it is important to study the thought process that goes into making a purchase decision so that marketers can reach this huge untapped segment
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
Acknowledgements
I am highly indebted to my project mentor Prof Deepa
Agnihotri for her continuous support supervision
motivation and guidance through out the tenure of my
project in spite of her hectic schedule who truly remained
driving spirit in my project and her experience gave me the
light in handling research project and helped me in clarifying
the abstruse concepts requiring knowledge and perception
handling critical situations and in understanding the
objective of my work
(Ravi Garg)
0
Preface
Market provides a key to gain actual success only to those brands which match best to the current environment ie imperative which can be delivered what are the people needs and they are ready to buy at the right time without any delay It is perfectly true but this also depends on availability of good quality products and excellent taste and services which further attract and add a golden opportunity for huge sales
This also depends on the good planning approach and provide ample opportunity plus sufficient amount of products for sales in the coming next financial year
This project introduces study of consumerrsquos preferences for Soft Drink Industry After going through a detail analysis of market behavior and future prospect it may also provide an opportunity to the players those are playing a vital role in the industry to frame a good future plan to satisfy maximum needs of the customers and established its guiding role in throughout the country as a whole The study report will also provide an opportunity to delineate its market potential business areas products amp services are to be offered by the company to the customers
This study report also provides the various factors affecting the services Marketing Division of a soft drink company has to keep in mind various factors specially while preparing a plan for marketing its product or services Detail description along with analysis of surveyed data is being presented in this report
0
Aims and Objectives of the study
To study the profile of soft drink consumers
To study the behavioral pattern of rural consumer for soft drink products
To identify their level of satisfaction in the purchase of various soft drink products
To determine the various factors influencing the behavior of soft drink consumer
0
History of the Industry
SOFT DRINK INDUSTRIES IN INDIA- A soft drink is a non-alcoholic
beverage It is artificially flavored and contains no fruit or pulp India with population
of more than 100 crores is potentially one of the largest consumer markets in the
world after China The consumer market can be defined as the market for products
and services that are purchased by individuals as households goods for their personal
consumption Soft drink is a typical consumer product purchased by individuals to
quench thirst and secondly for refreshment Searching for the point of Indian soft
drinks we first document on Gold Spot this was the first brand soft drink in India It
was introduced by PARLE during later part of 40rsquos
Cola giant Coca-Cola was the first foreign soft drink to be introduced in India in
1965 Coca-Cola make a very good beginning and dominated the whole scheme right
from the word go It (Coca-Cola) faced no competition at that time COCA COLA
entered India in the year 1993 In collaboration with PARLE INDIA LTD
The marketing people did not even receive to publicize Coca-Cola for it sold first
like probability not-cakes This extraordinary success of soft drinks can be
attributed to the following factors-
Absence of contemporary competitive brand
Euphoric image built up in the Western countries proceeded the entry
into Indian Market and
Indians are very found by nature of foreign goods services etc due to
prolonged foreign rules
Parle Exports (P) Ltd later in 1970 introduced Limca Lemony Soft drinks Before
Limca introduce they had tentatively introduced Cola Pepino which they had to
soon withdraw in the face of battering confrontation with Coca-Cola
0
Three of four groups of Indians companies who had the required production capacity
started their own brands of Cola Lemon Orange but failed to achieve their goal on a
national basis India always has love and hate relationship with MNCrsquos which gave a
significant opportunities to soft drink industries in India when Coca-Cola decided to
windup its operation in 1977 rather than bowing to the Indian government insisting
on-
Dilution of equity as the government felt that lots of foreign currency was
being wasted
Manufacturing of the top-secret concentration in India
Disclose of the chemical composition of the essence
This left a large vacuum in the popular soft drink market and a vista was opened to
any company with the requisite technical marketing and organizational skills
The exit of Coca-Cola from India in 1977 accelerated the growth of several Indian
Soft Drink New soft drink in the form of Tetra pack entered the market among
Frooti Jump-In and Treetop were the prominent once Till 1977 their equipped
bottling plants and the distribution network a longing to be of no use It took them one
year to develop new formula to survive and gradually came up with Campa Lemon
Orange and Cola that order
However Parle the pioneer in the soft drinks blazed its way to national prominence
with their product ldquoThumps Uprdquo bearing the slogan ldquoHappy Days Are Here Againrdquo
This particular slogan helped to win over the loyalists or addicts to Coca-Cola who
was in the state of ldquoCola Shockrdquo or Cola Depression Soon the Indian Soft drink
industry started at a phenomenal rate and all Parle Products Gold Spot Limca and
Thumps Up became the brand leader in their own segment In spite of all these the
drink market still has large gap as claim by soft drink manufacturers To fill these
gaps there are many soft drinks concentrate and squashes flooded the market The
Indian soft markets basically offered three flavors ie Orange Lemon and Cola
0
Words of Ministry of Food Processing
Industry for Soft Drink Industry
The 50-bn-rupee soft drink industry is growing now at 6 to 7 annually In India
Coke and Pepsi have a combined market share of around 95 directly or through
franchisees Campa Cola has a 1 share and the rest is divided among local
players Industry watchers say fake products also account for a good share of the
balance There are about 110 soft drink producing units (60 being owned by
Indian bottlers) in the country employing about 125000 people There are two
distinct segments of the market cola and non-cola drinks The cola segment claims
a share of 62 while the non-cola segment includes soda clear lime cloudy lime
and drinks with orange and mango flavors
The per capita consumption of soft drinks in India is around 5 to 6 bottles (same as
Nepals) compared to Pakistans 17 bottles Sri Lankas 21 Thailands 73 the
Philippines 173 and Mexico 605 The industry contributes over Rs 12 bn to the
exchequer and exports goods worth Rs 2 bn It also supports growth of industries
like glass refrigeration transportation paper and sugar The Department of Food
Processing Industries had stipulated that contains-no-fruit-juice labels be pasted
on returnable glass bottles About 85 of the soft drinks are currently sold in
returnable bottles There was a floating stock of about 1000 mn bottles valued at
Rs 6 bn If the industry were to abide by the new guidelines it would have to
invest in new bottles resulting in a cost outgo of Rs 5 bn Neither Coke nor Pepsi
is in a position to invest such a large amount
0
Around 400000 tonnes of raw material would be required to replace the existing
stock of bottles Instead the soft drink industry suggested that a seven-year
moratorium be extended to the industry so that it can incorporate the change in a
phased manner There is no such mandatory requirement anywhere in the world to
specifically label the glass surface of returnable bottles The government has
decided to extend the date for replacing the bottles to end-march 2006 In the
meantime the producers have shifted substantially to the use of PET bottles
Soft and aerated drinks were considered products for the middle class and the
affluent That segregation is no more valid Soft and aerated drinks are consumed
by all except those who cannot afford to buy any drink An NCAER study says
that 91 soft drink sales are made to the lower middle and upper middle classes
The soft drink industry has been urging the government to categorize aerated
waters (soft drinks) equitably with other consumer products of mass consumption
and remove special excise duty
The industry estimates that the beverage market should grow at twice the rate of
GDP growth The Indian market should have therefore grown by at least 12
However it has been growing at a rate of about 6 In contrast the Chinese
market grew by 16 a year while the Russian market expanded at almost four
times the rate of growth of the Indian market
It may be recalled that Coca-Cola the worlds number one player was present in
India for a long time in collaboration with an Indian producer but was thrown out
in the late 1970s It reappeared in India following the economic liberalization era
- but after its rival worlds number two had already entered in a big way following
a long and tough fight against the opposition from the domestic producers When
Coca-Cola re-entered it installed a new milestone It acquired the well flourishing
0
Indias top player Parle Since then it is basically a fight between the two
American giants Others are playing a peripheral role as adjuncts to the two
MNCs Worlds third biggest player Cadbury Schweppes had also made an
entry but was gobbled up by Coca-Cola When Coca-Cola acquired Parle brands it
was in fact buying the bottling facilities the marketing network and the
established consumer preference during the market build-up The brands were a
drag on the global brand Since Coca-Cola was not interested in brands (like
Thumps Up) it did not promote them The result at least in the short run was a
loss of the market to the competitor Coca-Cola decided to market more effectively
the Parle brands It had in its armoury Coke Thumps Up Limca and Fanta The
latest to enter market was Parlersquos erstwhile Rimzim alongside Portello a black
currant flavoured drink very popular in Srilanka
Coca-Cola operates through 35 plants and 16 franchisees throughout the country
while PepsiCo has 20 plants but it has 7 more franchisees at 23 to 16 of its rival
Coca-Cola claims a market share of 51 while Pepsi has a share of 46 The
claims however remain disputed The other smaller players like Pure Drinks Ltd
claim the rest of the market The shares of the two lead players are consolidated
figures which include the respective bottlers Coca-Cola had approached the
government for a five year extension for divesting 49 equity in its bottling
subsidiary Hindustan Coca-Cola Holdings It had set up the marketing subsidiary
as part of its strategy to integrate all its bottling operations both company-
owned and franchisee bottlers apparently keeping in line with its global policy
All together it had bought initially over 38 franchisee bottlers
Kandhari Beverages coke bottlers for north have been eyeing to lift a stake in
Coca-Cola India Coca-Cola had filed an application to offload 49 stake of its
0
bottling operations in favour of their Indian operators Besides Kandhari three
other bottlers one each from Uttar Pradesh Gujarat and Jammu were lined up to
invest in Hindustan Coca-Cola Holding Kandhari has already invested Rs 300 mn
in 1999 and 2000 to upgrade its capacity The total investment by all the four
was expected to be Rs 1000 mn Both Coca-Cola and PepsiCo planned for the
launch of lemon-flavored versions of their products Both have been expanding
their non-carbonated drink line-ups as consumers seem to be shifting away from
carbonated soft drinks PepsiCo is deliberating whether to come out with Pepsi
Twist a cola mixed with lemon But while both companies have juice sports
drinks bottled water and other such drinks in their line-ups neither coke nor Pepsi
has launched a new national variety of a cola-flavoured carbonated soft drink in
years
PepsiCo had achieved Rs 3 bn worth of exports which include processed foods
basmati rice guar gum and soft drinks concentrate PepsiCo completed the second
phase of its expansion and with this expansion PepsiCo was to explore the
possibility of expanding the export of concentrates to more countries in addition to
the exports to Russia and other South Asian countries
Pepsi India has entered into a marketing tie up with Hindustan Lever to promote
sales of soft drinks through Pepsi-HLL network of vending machines and
fountains The major soft drink brand in the Pepsi stable are Pepsi 7UP Mirinda
Tropicana and Acquafina
As a major strategic departure both MNCs were expanding their brand range
Consequent to some diversifying moves at present the sales ratio of Coca-Cola
between soft drinks and other beverages is 955 The company intended to change
this to 8020 in the next three years Its juice brand Maaza - acquired from Parle a
0
few years ago - is being given a major thrust It has plans to go in for canned
coffee iced tea and purified categories under expansion schemes It has already
launched its bottled water brand Kinley in the Indian market Besides it is
intending to acquire domestic brands in the non-carbonated beverages segment
The global deal between Coca-Cola and PampG to form a snacks and beverages joint
venture company was reported to have slipped into rough weather The
PampG brand of potato wafer Pringles seemed to be faced with distribution
problems in India PampG had globally tied up with Coca-Cola to form a stand-alone
juice and snacks company The new firm is focused on developing and marketing
new juices juice based beverages and snacks on a global basis The Sharjah-based
Allied Beverages was pushing its Ahlan brand in India having entered the market
in mid-2000 Its target was carbonated drinks market in PET bottles Its plans
were to launch a PET bottle in the popular 300 ml category Ahlan expected to
gain a 12 share of the total PET bottle market in northern India Of the total
market PET bottle segment is approximately 12 Presently Allied Beverages
has a manufacturing unit at Dharuhera in Haryana The product range includes
carbonated drinks - cola orange lemon and soda in three pack sizes - 500 ml
1500 ml and 2000 ml Allied Beverages sells non-carbonated drinks in 200 ml
foodgrade cups priced at Rs 7 in its portfolio available in four different flavors
The companys future plans include pulp-based fruit drinks in flavors which will
be available in 200 ml non-returnable glass bottles
IFB Agro Industries has handed over the distribution rights of Cadbury Schweppes
in favour of Coco-Cola India following the global takeover of Schweppes
beverages by Coke The company still retains the bottling rights for the beverages
0
It was noticed for the first time during the summer of 2004 that soft drink
companies were registering a slower growth in the sale of bottled water at 20
compared to 35 in case of drinks
Lead Players amp Alliances
Company Share ()
Aradhana 34
Varun Beverages 15
Devyani Beverages 9
Kandhari Beverages 7
Ludhiana Beverages 7
Sri Sarvarya Sugars 6
Pearl Drinks 5
Pearl Beverages 6
0
Leading Brands
Coca Cola Thums Up Limca Fanta Gold Spot Rim Zim Maaza Pepsi Mirinda
7UP Mangola Slice Dukes Lemonada Crush Canada Dry Campa
Market Growth Rates
1990-91 - 1996-97 941996-97 - 2001-02 782001-02 - 2006-07 652004-05 - 2009-10 542009-10 - 2014-15 35 Sensitivity Coefficient 52Market Segmentation
Segment Share ()North 24East 18West 32South 26Rural 30Urban 70
0
Market Structure
Product Variation
Company Share ()Cola Drinks Thums Up 29Coca Cola 25Pepsi 18Non Cola Drinks Gold Spot 2Fanta 9Mirinda 8Limca 9Overall Colas 62Lemon Cloudy 7Clear 3Orange 17Mango 3Soda 8
(wwwmofpinicin)
0
Robust growth continues
The soft drinks industry continued on its path to recovery from the low growth seen between 2005 and 2006 with higher volume growth in 2008 than that seen in 2007 The mature sectors of bottled water fruitvegetable juice and carbonates saw a dynamic year with companies refreshing their productsrsquo brand image and packaging to attract new consumers Emerging product categories such as energy drinks and reconstituted 100 juice saw high double-digit growth rates as companies increased their productsrsquo penetration in India Off-trade volume growth was slightly higher than on-trade volume growth as convenient on-the-go packaging company sponsored chillers in kiranas and attractive supermarket displays fuelled off-trade sales across the market
Companies reposition their brands and update product portfolios
With the industry back on the upward growth curve companies refreshed their brands by introducing new and more premium packaging designs pack sizes and communication campaigns In 2008 bottled water was especially dynamic with all the major national brands following the cue of Bislerirsquos rebranding in late 2007 Carbonates and juice drinks were also reinvigorated with new pack sizes that targeted on-the-go consumption by young adults With ldquonaturally healthyrdquo becoming a key focus for consumers and manufacturers fruitvegetable drinks companies focused their efforts on highlighting their productsrsquo fresh fruit content and health attributes Companies put in motion plans to extend their product portfolios to emerging categories such as 100 juice energy drinks and flavoured water
Indian Product Range
0
Flavour Ingredients Pack Product Company
Cola Cola Flavour carbonated water sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Coke
Thumsup
RC
Pepsi
Coca-Coal
RC cola
Pepsi
Orange Orange Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Fanta
Mirinda
Coca-Cola
Pepsi
Fruit Juice Mango Pulp+ Treated water+ sugar
250 ML Maaza
Minute Maid Pullpy Orange
Slice
Tropicana
Appy Fizz
Real
Coca-Cola
Pepsi
Appy FizzDabur
Cloudy Lemon
Lemon Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Limca
LMN
Mirinda Lemon
Nimbooz
Coca-Cola
Parle agro
Pepsi
Clear Lemon Lemon Flavour+ Carbonated Water + Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Sprite
7rsquoUp
Dew
Coca-Cola
Pepsi
Rural Market Scenario
0
Indian Rural Market
The Indian growth story is now spreading itself to Indias hinterlands Rural India home to about two-thirds of the countryrsquos 1 billion population is not just witnessing an increase in its income but also in consumption and production The interim Budgets focus on extending the National Rural Employment Guarantee Act (NREGA) to all states with a US$ 583 billion outlay for 2009-10 would benefit the rural economy The rural economy got a further boost with the farmer loan waiver of US$ 1386 billion and the ambitious Bharat Nirman Programme with an outlay of US$ 3484 billion for improving rural infrastructure Additionally the rural economy has not been impacted by the global economic slowdown according to a recent study by the Rural Marketing Association of India (RMAI) The study found that the rural and small town economy which accounts for 60 per cent of Indiarsquos income has remained insulated from the economic slowdown Moreover rural incomes are on the rise driven largely due to continuous growth in agriculture for four consecutive years According to a McKinsey survey conducted in 2007 the rural India market would grow almost four times from its existing size in 2007 which was estimated at US$ 577 billion Furthermore high-end brands like Tommy Hilfiger are also bullish on small towns Small towns currently contribute around 20 per cent of the brandrsquos sales This could go up to one-third in two yearsrsquo time
lsquoRuralrsquo ndash 75 population engaged in agriculture related activity According to industry estimates 70 of population engaged in agricultural
activity1048699 700 million people (Aug 2002)1048699 13rd of countryrsquos GNP1048699 450 districts 630000 villages approx
Rural India is also characterized by growing affluenceagricultural output increasingly to early 215 millions tones in 2004 compared to 176 millions in 1991
Key to success in Rural India
0
Physical Distribution Channel Management Promotion and Marketing Communication
Rural Marketing Key Strategy
Three As
Availability Capacity expansion ndash 25 prod lines and doubled bottle capacity Unique and different distribution strategy ndash hub amp spoke
distribution Coverage of 158342 villages by Aug 2003 (81383 in 2001) 200000 refrigerators to rural retailers
Affordability Introduction of 200ml bottle Priced at Rs 7 closed the gap
between Coke and basic refreshments
Acceptability Mass media marketing Launched TVCs targeted at rural consumers
0
0
LITERATURE REVIEW
1-A study of factors responsible for brand preference in fmcg sectorrdquo The purpose of this paper is the study of factors responsible for brand preference in fmcg products increasing competition more due to globalization is motivating many companies to base their strategies almost entirely on building brands Brand preference means to compare the different brands and opt for the most preferred brand This brand preference is influenced by various factorsAccording to this study many factors were find out for preferring a brand likeBrand persona Brand constancyBrand loftinessBrand valueIn the identification of factors affecting the brand preference it was concluded that brand persona is the most effective factor that affects the brand preference This brand persona deals with the personality aspects or the external attributes of brand thus it can be said that consumer prefer any brand by looking at the external attributes of a brand
-journal of ims vol 5 no1 jan-june 2008
2-Colour and flavour rule consumer preferences Study
The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse ldquoCompanies need to continuously innovate to maintain market leadershiprdquo wrote the researchers ldquoWhen the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumersrdquo ldquoThis experiment
0
showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approachesrdquo The study also demonstrates the importance of flavour and colour selection for new products
The global flavours market was been valued at some US$18bn in 2006 (Business Insights) Meanwhile the value of the international colourings market was estimated at around $115bn in 2007 (euro731m) up 25 per cent from $107bn (680m) in 2004 according to Leatherhead Food International (LFI) Natural colours now make up 31 per cent of the colourings market compared with 40 per cent for synthetics according to LFI
Bombarding the senses
By choosing to formulate a new beverage the researchers noted that the new product would need to be differentiated by improving the sensory characteristics
Four factors were identified for the formulation four colour intensities) three flavourings two label types (soft versus hard) and two pack sizes (standard versus oversize) By using both quantitative (hedonic testing) and qualitative (focus groups) approaches the researchers found that ldquothe main factors which drive consumer preference for this concept are colour intensity and flavouringrdquo Indeed colour intensity accounted for 43 per cent and flavour 32 per cent of the consumersrsquo overall liking ldquoPack size and label type are taken into account by the consumer to a lesser extendrdquo they added ldquoThis methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumersrsquo expectation it has now to be reproduced as every brand concept and product is a unique combination designed for a specific consumer grouprdquo concluded the researchers
Source Food Quality and PreferenceVolume 19 Issue 8 Pages 719-726By Stephen Daniells 07-Oct-2008
0
3- Taste or health A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits Data were analyzed 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 saltiness drinks flavor and greasiness These variables emerged as the first factor in the analysis suggesting 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 respondents attitudes toward fat in the diet Factor 3 comprised two remaining sensory attributes (color 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
Source-Beverly J Tepper and Amy C Trail Journal of Food Science and Technology 15 September 1998
Rural Consumer BehaviorConsumer Buyer Behavior refers to the buying behavior of final consumers ndash individuals and households who buy goods and services for personal consumption All of these final consumers combined make up the consumer market The consumer market in this case is Rural India About 70 of Indias population lives in rural areas There are more than 600000 villages in the country as against about 300 cities and 4600 towns Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use Villagers react differently to different products colors sizes etc in different parts of India Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India Thus it is important to study the thought process that goes into making a purchase decision so that marketers can reach this huge untapped segment
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
Preface
Market provides a key to gain actual success only to those brands which match best to the current environment ie imperative which can be delivered what are the people needs and they are ready to buy at the right time without any delay It is perfectly true but this also depends on availability of good quality products and excellent taste and services which further attract and add a golden opportunity for huge sales
This also depends on the good planning approach and provide ample opportunity plus sufficient amount of products for sales in the coming next financial year
This project introduces study of consumerrsquos preferences for Soft Drink Industry After going through a detail analysis of market behavior and future prospect it may also provide an opportunity to the players those are playing a vital role in the industry to frame a good future plan to satisfy maximum needs of the customers and established its guiding role in throughout the country as a whole The study report will also provide an opportunity to delineate its market potential business areas products amp services are to be offered by the company to the customers
This study report also provides the various factors affecting the services Marketing Division of a soft drink company has to keep in mind various factors specially while preparing a plan for marketing its product or services Detail description along with analysis of surveyed data is being presented in this report
0
Aims and Objectives of the study
To study the profile of soft drink consumers
To study the behavioral pattern of rural consumer for soft drink products
To identify their level of satisfaction in the purchase of various soft drink products
To determine the various factors influencing the behavior of soft drink consumer
0
History of the Industry
SOFT DRINK INDUSTRIES IN INDIA- A soft drink is a non-alcoholic
beverage It is artificially flavored and contains no fruit or pulp India with population
of more than 100 crores is potentially one of the largest consumer markets in the
world after China The consumer market can be defined as the market for products
and services that are purchased by individuals as households goods for their personal
consumption Soft drink is a typical consumer product purchased by individuals to
quench thirst and secondly for refreshment Searching for the point of Indian soft
drinks we first document on Gold Spot this was the first brand soft drink in India It
was introduced by PARLE during later part of 40rsquos
Cola giant Coca-Cola was the first foreign soft drink to be introduced in India in
1965 Coca-Cola make a very good beginning and dominated the whole scheme right
from the word go It (Coca-Cola) faced no competition at that time COCA COLA
entered India in the year 1993 In collaboration with PARLE INDIA LTD
The marketing people did not even receive to publicize Coca-Cola for it sold first
like probability not-cakes This extraordinary success of soft drinks can be
attributed to the following factors-
Absence of contemporary competitive brand
Euphoric image built up in the Western countries proceeded the entry
into Indian Market and
Indians are very found by nature of foreign goods services etc due to
prolonged foreign rules
Parle Exports (P) Ltd later in 1970 introduced Limca Lemony Soft drinks Before
Limca introduce they had tentatively introduced Cola Pepino which they had to
soon withdraw in the face of battering confrontation with Coca-Cola
0
Three of four groups of Indians companies who had the required production capacity
started their own brands of Cola Lemon Orange but failed to achieve their goal on a
national basis India always has love and hate relationship with MNCrsquos which gave a
significant opportunities to soft drink industries in India when Coca-Cola decided to
windup its operation in 1977 rather than bowing to the Indian government insisting
on-
Dilution of equity as the government felt that lots of foreign currency was
being wasted
Manufacturing of the top-secret concentration in India
Disclose of the chemical composition of the essence
This left a large vacuum in the popular soft drink market and a vista was opened to
any company with the requisite technical marketing and organizational skills
The exit of Coca-Cola from India in 1977 accelerated the growth of several Indian
Soft Drink New soft drink in the form of Tetra pack entered the market among
Frooti Jump-In and Treetop were the prominent once Till 1977 their equipped
bottling plants and the distribution network a longing to be of no use It took them one
year to develop new formula to survive and gradually came up with Campa Lemon
Orange and Cola that order
However Parle the pioneer in the soft drinks blazed its way to national prominence
with their product ldquoThumps Uprdquo bearing the slogan ldquoHappy Days Are Here Againrdquo
This particular slogan helped to win over the loyalists or addicts to Coca-Cola who
was in the state of ldquoCola Shockrdquo or Cola Depression Soon the Indian Soft drink
industry started at a phenomenal rate and all Parle Products Gold Spot Limca and
Thumps Up became the brand leader in their own segment In spite of all these the
drink market still has large gap as claim by soft drink manufacturers To fill these
gaps there are many soft drinks concentrate and squashes flooded the market The
Indian soft markets basically offered three flavors ie Orange Lemon and Cola
0
Words of Ministry of Food Processing
Industry for Soft Drink Industry
The 50-bn-rupee soft drink industry is growing now at 6 to 7 annually In India
Coke and Pepsi have a combined market share of around 95 directly or through
franchisees Campa Cola has a 1 share and the rest is divided among local
players Industry watchers say fake products also account for a good share of the
balance There are about 110 soft drink producing units (60 being owned by
Indian bottlers) in the country employing about 125000 people There are two
distinct segments of the market cola and non-cola drinks The cola segment claims
a share of 62 while the non-cola segment includes soda clear lime cloudy lime
and drinks with orange and mango flavors
The per capita consumption of soft drinks in India is around 5 to 6 bottles (same as
Nepals) compared to Pakistans 17 bottles Sri Lankas 21 Thailands 73 the
Philippines 173 and Mexico 605 The industry contributes over Rs 12 bn to the
exchequer and exports goods worth Rs 2 bn It also supports growth of industries
like glass refrigeration transportation paper and sugar The Department of Food
Processing Industries had stipulated that contains-no-fruit-juice labels be pasted
on returnable glass bottles About 85 of the soft drinks are currently sold in
returnable bottles There was a floating stock of about 1000 mn bottles valued at
Rs 6 bn If the industry were to abide by the new guidelines it would have to
invest in new bottles resulting in a cost outgo of Rs 5 bn Neither Coke nor Pepsi
is in a position to invest such a large amount
0
Around 400000 tonnes of raw material would be required to replace the existing
stock of bottles Instead the soft drink industry suggested that a seven-year
moratorium be extended to the industry so that it can incorporate the change in a
phased manner There is no such mandatory requirement anywhere in the world to
specifically label the glass surface of returnable bottles The government has
decided to extend the date for replacing the bottles to end-march 2006 In the
meantime the producers have shifted substantially to the use of PET bottles
Soft and aerated drinks were considered products for the middle class and the
affluent That segregation is no more valid Soft and aerated drinks are consumed
by all except those who cannot afford to buy any drink An NCAER study says
that 91 soft drink sales are made to the lower middle and upper middle classes
The soft drink industry has been urging the government to categorize aerated
waters (soft drinks) equitably with other consumer products of mass consumption
and remove special excise duty
The industry estimates that the beverage market should grow at twice the rate of
GDP growth The Indian market should have therefore grown by at least 12
However it has been growing at a rate of about 6 In contrast the Chinese
market grew by 16 a year while the Russian market expanded at almost four
times the rate of growth of the Indian market
It may be recalled that Coca-Cola the worlds number one player was present in
India for a long time in collaboration with an Indian producer but was thrown out
in the late 1970s It reappeared in India following the economic liberalization era
- but after its rival worlds number two had already entered in a big way following
a long and tough fight against the opposition from the domestic producers When
Coca-Cola re-entered it installed a new milestone It acquired the well flourishing
0
Indias top player Parle Since then it is basically a fight between the two
American giants Others are playing a peripheral role as adjuncts to the two
MNCs Worlds third biggest player Cadbury Schweppes had also made an
entry but was gobbled up by Coca-Cola When Coca-Cola acquired Parle brands it
was in fact buying the bottling facilities the marketing network and the
established consumer preference during the market build-up The brands were a
drag on the global brand Since Coca-Cola was not interested in brands (like
Thumps Up) it did not promote them The result at least in the short run was a
loss of the market to the competitor Coca-Cola decided to market more effectively
the Parle brands It had in its armoury Coke Thumps Up Limca and Fanta The
latest to enter market was Parlersquos erstwhile Rimzim alongside Portello a black
currant flavoured drink very popular in Srilanka
Coca-Cola operates through 35 plants and 16 franchisees throughout the country
while PepsiCo has 20 plants but it has 7 more franchisees at 23 to 16 of its rival
Coca-Cola claims a market share of 51 while Pepsi has a share of 46 The
claims however remain disputed The other smaller players like Pure Drinks Ltd
claim the rest of the market The shares of the two lead players are consolidated
figures which include the respective bottlers Coca-Cola had approached the
government for a five year extension for divesting 49 equity in its bottling
subsidiary Hindustan Coca-Cola Holdings It had set up the marketing subsidiary
as part of its strategy to integrate all its bottling operations both company-
owned and franchisee bottlers apparently keeping in line with its global policy
All together it had bought initially over 38 franchisee bottlers
Kandhari Beverages coke bottlers for north have been eyeing to lift a stake in
Coca-Cola India Coca-Cola had filed an application to offload 49 stake of its
0
bottling operations in favour of their Indian operators Besides Kandhari three
other bottlers one each from Uttar Pradesh Gujarat and Jammu were lined up to
invest in Hindustan Coca-Cola Holding Kandhari has already invested Rs 300 mn
in 1999 and 2000 to upgrade its capacity The total investment by all the four
was expected to be Rs 1000 mn Both Coca-Cola and PepsiCo planned for the
launch of lemon-flavored versions of their products Both have been expanding
their non-carbonated drink line-ups as consumers seem to be shifting away from
carbonated soft drinks PepsiCo is deliberating whether to come out with Pepsi
Twist a cola mixed with lemon But while both companies have juice sports
drinks bottled water and other such drinks in their line-ups neither coke nor Pepsi
has launched a new national variety of a cola-flavoured carbonated soft drink in
years
PepsiCo had achieved Rs 3 bn worth of exports which include processed foods
basmati rice guar gum and soft drinks concentrate PepsiCo completed the second
phase of its expansion and with this expansion PepsiCo was to explore the
possibility of expanding the export of concentrates to more countries in addition to
the exports to Russia and other South Asian countries
Pepsi India has entered into a marketing tie up with Hindustan Lever to promote
sales of soft drinks through Pepsi-HLL network of vending machines and
fountains The major soft drink brand in the Pepsi stable are Pepsi 7UP Mirinda
Tropicana and Acquafina
As a major strategic departure both MNCs were expanding their brand range
Consequent to some diversifying moves at present the sales ratio of Coca-Cola
between soft drinks and other beverages is 955 The company intended to change
this to 8020 in the next three years Its juice brand Maaza - acquired from Parle a
0
few years ago - is being given a major thrust It has plans to go in for canned
coffee iced tea and purified categories under expansion schemes It has already
launched its bottled water brand Kinley in the Indian market Besides it is
intending to acquire domestic brands in the non-carbonated beverages segment
The global deal between Coca-Cola and PampG to form a snacks and beverages joint
venture company was reported to have slipped into rough weather The
PampG brand of potato wafer Pringles seemed to be faced with distribution
problems in India PampG had globally tied up with Coca-Cola to form a stand-alone
juice and snacks company The new firm is focused on developing and marketing
new juices juice based beverages and snacks on a global basis The Sharjah-based
Allied Beverages was pushing its Ahlan brand in India having entered the market
in mid-2000 Its target was carbonated drinks market in PET bottles Its plans
were to launch a PET bottle in the popular 300 ml category Ahlan expected to
gain a 12 share of the total PET bottle market in northern India Of the total
market PET bottle segment is approximately 12 Presently Allied Beverages
has a manufacturing unit at Dharuhera in Haryana The product range includes
carbonated drinks - cola orange lemon and soda in three pack sizes - 500 ml
1500 ml and 2000 ml Allied Beverages sells non-carbonated drinks in 200 ml
foodgrade cups priced at Rs 7 in its portfolio available in four different flavors
The companys future plans include pulp-based fruit drinks in flavors which will
be available in 200 ml non-returnable glass bottles
IFB Agro Industries has handed over the distribution rights of Cadbury Schweppes
in favour of Coco-Cola India following the global takeover of Schweppes
beverages by Coke The company still retains the bottling rights for the beverages
0
It was noticed for the first time during the summer of 2004 that soft drink
companies were registering a slower growth in the sale of bottled water at 20
compared to 35 in case of drinks
Lead Players amp Alliances
Company Share ()
Aradhana 34
Varun Beverages 15
Devyani Beverages 9
Kandhari Beverages 7
Ludhiana Beverages 7
Sri Sarvarya Sugars 6
Pearl Drinks 5
Pearl Beverages 6
0
Leading Brands
Coca Cola Thums Up Limca Fanta Gold Spot Rim Zim Maaza Pepsi Mirinda
7UP Mangola Slice Dukes Lemonada Crush Canada Dry Campa
Market Growth Rates
1990-91 - 1996-97 941996-97 - 2001-02 782001-02 - 2006-07 652004-05 - 2009-10 542009-10 - 2014-15 35 Sensitivity Coefficient 52Market Segmentation
Segment Share ()North 24East 18West 32South 26Rural 30Urban 70
0
Market Structure
Product Variation
Company Share ()Cola Drinks Thums Up 29Coca Cola 25Pepsi 18Non Cola Drinks Gold Spot 2Fanta 9Mirinda 8Limca 9Overall Colas 62Lemon Cloudy 7Clear 3Orange 17Mango 3Soda 8
(wwwmofpinicin)
0
Robust growth continues
The soft drinks industry continued on its path to recovery from the low growth seen between 2005 and 2006 with higher volume growth in 2008 than that seen in 2007 The mature sectors of bottled water fruitvegetable juice and carbonates saw a dynamic year with companies refreshing their productsrsquo brand image and packaging to attract new consumers Emerging product categories such as energy drinks and reconstituted 100 juice saw high double-digit growth rates as companies increased their productsrsquo penetration in India Off-trade volume growth was slightly higher than on-trade volume growth as convenient on-the-go packaging company sponsored chillers in kiranas and attractive supermarket displays fuelled off-trade sales across the market
Companies reposition their brands and update product portfolios
With the industry back on the upward growth curve companies refreshed their brands by introducing new and more premium packaging designs pack sizes and communication campaigns In 2008 bottled water was especially dynamic with all the major national brands following the cue of Bislerirsquos rebranding in late 2007 Carbonates and juice drinks were also reinvigorated with new pack sizes that targeted on-the-go consumption by young adults With ldquonaturally healthyrdquo becoming a key focus for consumers and manufacturers fruitvegetable drinks companies focused their efforts on highlighting their productsrsquo fresh fruit content and health attributes Companies put in motion plans to extend their product portfolios to emerging categories such as 100 juice energy drinks and flavoured water
Indian Product Range
0
Flavour Ingredients Pack Product Company
Cola Cola Flavour carbonated water sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Coke
Thumsup
RC
Pepsi
Coca-Coal
RC cola
Pepsi
Orange Orange Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Fanta
Mirinda
Coca-Cola
Pepsi
Fruit Juice Mango Pulp+ Treated water+ sugar
250 ML Maaza
Minute Maid Pullpy Orange
Slice
Tropicana
Appy Fizz
Real
Coca-Cola
Pepsi
Appy FizzDabur
Cloudy Lemon
Lemon Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Limca
LMN
Mirinda Lemon
Nimbooz
Coca-Cola
Parle agro
Pepsi
Clear Lemon Lemon Flavour+ Carbonated Water + Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Sprite
7rsquoUp
Dew
Coca-Cola
Pepsi
Rural Market Scenario
0
Indian Rural Market
The Indian growth story is now spreading itself to Indias hinterlands Rural India home to about two-thirds of the countryrsquos 1 billion population is not just witnessing an increase in its income but also in consumption and production The interim Budgets focus on extending the National Rural Employment Guarantee Act (NREGA) to all states with a US$ 583 billion outlay for 2009-10 would benefit the rural economy The rural economy got a further boost with the farmer loan waiver of US$ 1386 billion and the ambitious Bharat Nirman Programme with an outlay of US$ 3484 billion for improving rural infrastructure Additionally the rural economy has not been impacted by the global economic slowdown according to a recent study by the Rural Marketing Association of India (RMAI) The study found that the rural and small town economy which accounts for 60 per cent of Indiarsquos income has remained insulated from the economic slowdown Moreover rural incomes are on the rise driven largely due to continuous growth in agriculture for four consecutive years According to a McKinsey survey conducted in 2007 the rural India market would grow almost four times from its existing size in 2007 which was estimated at US$ 577 billion Furthermore high-end brands like Tommy Hilfiger are also bullish on small towns Small towns currently contribute around 20 per cent of the brandrsquos sales This could go up to one-third in two yearsrsquo time
lsquoRuralrsquo ndash 75 population engaged in agriculture related activity According to industry estimates 70 of population engaged in agricultural
activity1048699 700 million people (Aug 2002)1048699 13rd of countryrsquos GNP1048699 450 districts 630000 villages approx
Rural India is also characterized by growing affluenceagricultural output increasingly to early 215 millions tones in 2004 compared to 176 millions in 1991
Key to success in Rural India
0
Physical Distribution Channel Management Promotion and Marketing Communication
Rural Marketing Key Strategy
Three As
Availability Capacity expansion ndash 25 prod lines and doubled bottle capacity Unique and different distribution strategy ndash hub amp spoke
distribution Coverage of 158342 villages by Aug 2003 (81383 in 2001) 200000 refrigerators to rural retailers
Affordability Introduction of 200ml bottle Priced at Rs 7 closed the gap
between Coke and basic refreshments
Acceptability Mass media marketing Launched TVCs targeted at rural consumers
0
0
LITERATURE REVIEW
1-A study of factors responsible for brand preference in fmcg sectorrdquo The purpose of this paper is the study of factors responsible for brand preference in fmcg products increasing competition more due to globalization is motivating many companies to base their strategies almost entirely on building brands Brand preference means to compare the different brands and opt for the most preferred brand This brand preference is influenced by various factorsAccording to this study many factors were find out for preferring a brand likeBrand persona Brand constancyBrand loftinessBrand valueIn the identification of factors affecting the brand preference it was concluded that brand persona is the most effective factor that affects the brand preference This brand persona deals with the personality aspects or the external attributes of brand thus it can be said that consumer prefer any brand by looking at the external attributes of a brand
-journal of ims vol 5 no1 jan-june 2008
2-Colour and flavour rule consumer preferences Study
The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse ldquoCompanies need to continuously innovate to maintain market leadershiprdquo wrote the researchers ldquoWhen the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumersrdquo ldquoThis experiment
0
showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approachesrdquo The study also demonstrates the importance of flavour and colour selection for new products
The global flavours market was been valued at some US$18bn in 2006 (Business Insights) Meanwhile the value of the international colourings market was estimated at around $115bn in 2007 (euro731m) up 25 per cent from $107bn (680m) in 2004 according to Leatherhead Food International (LFI) Natural colours now make up 31 per cent of the colourings market compared with 40 per cent for synthetics according to LFI
Bombarding the senses
By choosing to formulate a new beverage the researchers noted that the new product would need to be differentiated by improving the sensory characteristics
Four factors were identified for the formulation four colour intensities) three flavourings two label types (soft versus hard) and two pack sizes (standard versus oversize) By using both quantitative (hedonic testing) and qualitative (focus groups) approaches the researchers found that ldquothe main factors which drive consumer preference for this concept are colour intensity and flavouringrdquo Indeed colour intensity accounted for 43 per cent and flavour 32 per cent of the consumersrsquo overall liking ldquoPack size and label type are taken into account by the consumer to a lesser extendrdquo they added ldquoThis methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumersrsquo expectation it has now to be reproduced as every brand concept and product is a unique combination designed for a specific consumer grouprdquo concluded the researchers
Source Food Quality and PreferenceVolume 19 Issue 8 Pages 719-726By Stephen Daniells 07-Oct-2008
0
3- Taste or health A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits Data were analyzed 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 saltiness drinks flavor and greasiness These variables emerged as the first factor in the analysis suggesting 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 respondents attitudes toward fat in the diet Factor 3 comprised two remaining sensory attributes (color 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
Source-Beverly J Tepper and Amy C Trail Journal of Food Science and Technology 15 September 1998
Rural Consumer BehaviorConsumer Buyer Behavior refers to the buying behavior of final consumers ndash individuals and households who buy goods and services for personal consumption All of these final consumers combined make up the consumer market The consumer market in this case is Rural India About 70 of Indias population lives in rural areas There are more than 600000 villages in the country as against about 300 cities and 4600 towns Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use Villagers react differently to different products colors sizes etc in different parts of India Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India Thus it is important to study the thought process that goes into making a purchase decision so that marketers can reach this huge untapped segment
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
Aims and Objectives of the study
To study the profile of soft drink consumers
To study the behavioral pattern of rural consumer for soft drink products
To identify their level of satisfaction in the purchase of various soft drink products
To determine the various factors influencing the behavior of soft drink consumer
0
History of the Industry
SOFT DRINK INDUSTRIES IN INDIA- A soft drink is a non-alcoholic
beverage It is artificially flavored and contains no fruit or pulp India with population
of more than 100 crores is potentially one of the largest consumer markets in the
world after China The consumer market can be defined as the market for products
and services that are purchased by individuals as households goods for their personal
consumption Soft drink is a typical consumer product purchased by individuals to
quench thirst and secondly for refreshment Searching for the point of Indian soft
drinks we first document on Gold Spot this was the first brand soft drink in India It
was introduced by PARLE during later part of 40rsquos
Cola giant Coca-Cola was the first foreign soft drink to be introduced in India in
1965 Coca-Cola make a very good beginning and dominated the whole scheme right
from the word go It (Coca-Cola) faced no competition at that time COCA COLA
entered India in the year 1993 In collaboration with PARLE INDIA LTD
The marketing people did not even receive to publicize Coca-Cola for it sold first
like probability not-cakes This extraordinary success of soft drinks can be
attributed to the following factors-
Absence of contemporary competitive brand
Euphoric image built up in the Western countries proceeded the entry
into Indian Market and
Indians are very found by nature of foreign goods services etc due to
prolonged foreign rules
Parle Exports (P) Ltd later in 1970 introduced Limca Lemony Soft drinks Before
Limca introduce they had tentatively introduced Cola Pepino which they had to
soon withdraw in the face of battering confrontation with Coca-Cola
0
Three of four groups of Indians companies who had the required production capacity
started their own brands of Cola Lemon Orange but failed to achieve their goal on a
national basis India always has love and hate relationship with MNCrsquos which gave a
significant opportunities to soft drink industries in India when Coca-Cola decided to
windup its operation in 1977 rather than bowing to the Indian government insisting
on-
Dilution of equity as the government felt that lots of foreign currency was
being wasted
Manufacturing of the top-secret concentration in India
Disclose of the chemical composition of the essence
This left a large vacuum in the popular soft drink market and a vista was opened to
any company with the requisite technical marketing and organizational skills
The exit of Coca-Cola from India in 1977 accelerated the growth of several Indian
Soft Drink New soft drink in the form of Tetra pack entered the market among
Frooti Jump-In and Treetop were the prominent once Till 1977 their equipped
bottling plants and the distribution network a longing to be of no use It took them one
year to develop new formula to survive and gradually came up with Campa Lemon
Orange and Cola that order
However Parle the pioneer in the soft drinks blazed its way to national prominence
with their product ldquoThumps Uprdquo bearing the slogan ldquoHappy Days Are Here Againrdquo
This particular slogan helped to win over the loyalists or addicts to Coca-Cola who
was in the state of ldquoCola Shockrdquo or Cola Depression Soon the Indian Soft drink
industry started at a phenomenal rate and all Parle Products Gold Spot Limca and
Thumps Up became the brand leader in their own segment In spite of all these the
drink market still has large gap as claim by soft drink manufacturers To fill these
gaps there are many soft drinks concentrate and squashes flooded the market The
Indian soft markets basically offered three flavors ie Orange Lemon and Cola
0
Words of Ministry of Food Processing
Industry for Soft Drink Industry
The 50-bn-rupee soft drink industry is growing now at 6 to 7 annually In India
Coke and Pepsi have a combined market share of around 95 directly or through
franchisees Campa Cola has a 1 share and the rest is divided among local
players Industry watchers say fake products also account for a good share of the
balance There are about 110 soft drink producing units (60 being owned by
Indian bottlers) in the country employing about 125000 people There are two
distinct segments of the market cola and non-cola drinks The cola segment claims
a share of 62 while the non-cola segment includes soda clear lime cloudy lime
and drinks with orange and mango flavors
The per capita consumption of soft drinks in India is around 5 to 6 bottles (same as
Nepals) compared to Pakistans 17 bottles Sri Lankas 21 Thailands 73 the
Philippines 173 and Mexico 605 The industry contributes over Rs 12 bn to the
exchequer and exports goods worth Rs 2 bn It also supports growth of industries
like glass refrigeration transportation paper and sugar The Department of Food
Processing Industries had stipulated that contains-no-fruit-juice labels be pasted
on returnable glass bottles About 85 of the soft drinks are currently sold in
returnable bottles There was a floating stock of about 1000 mn bottles valued at
Rs 6 bn If the industry were to abide by the new guidelines it would have to
invest in new bottles resulting in a cost outgo of Rs 5 bn Neither Coke nor Pepsi
is in a position to invest such a large amount
0
Around 400000 tonnes of raw material would be required to replace the existing
stock of bottles Instead the soft drink industry suggested that a seven-year
moratorium be extended to the industry so that it can incorporate the change in a
phased manner There is no such mandatory requirement anywhere in the world to
specifically label the glass surface of returnable bottles The government has
decided to extend the date for replacing the bottles to end-march 2006 In the
meantime the producers have shifted substantially to the use of PET bottles
Soft and aerated drinks were considered products for the middle class and the
affluent That segregation is no more valid Soft and aerated drinks are consumed
by all except those who cannot afford to buy any drink An NCAER study says
that 91 soft drink sales are made to the lower middle and upper middle classes
The soft drink industry has been urging the government to categorize aerated
waters (soft drinks) equitably with other consumer products of mass consumption
and remove special excise duty
The industry estimates that the beverage market should grow at twice the rate of
GDP growth The Indian market should have therefore grown by at least 12
However it has been growing at a rate of about 6 In contrast the Chinese
market grew by 16 a year while the Russian market expanded at almost four
times the rate of growth of the Indian market
It may be recalled that Coca-Cola the worlds number one player was present in
India for a long time in collaboration with an Indian producer but was thrown out
in the late 1970s It reappeared in India following the economic liberalization era
- but after its rival worlds number two had already entered in a big way following
a long and tough fight against the opposition from the domestic producers When
Coca-Cola re-entered it installed a new milestone It acquired the well flourishing
0
Indias top player Parle Since then it is basically a fight between the two
American giants Others are playing a peripheral role as adjuncts to the two
MNCs Worlds third biggest player Cadbury Schweppes had also made an
entry but was gobbled up by Coca-Cola When Coca-Cola acquired Parle brands it
was in fact buying the bottling facilities the marketing network and the
established consumer preference during the market build-up The brands were a
drag on the global brand Since Coca-Cola was not interested in brands (like
Thumps Up) it did not promote them The result at least in the short run was a
loss of the market to the competitor Coca-Cola decided to market more effectively
the Parle brands It had in its armoury Coke Thumps Up Limca and Fanta The
latest to enter market was Parlersquos erstwhile Rimzim alongside Portello a black
currant flavoured drink very popular in Srilanka
Coca-Cola operates through 35 plants and 16 franchisees throughout the country
while PepsiCo has 20 plants but it has 7 more franchisees at 23 to 16 of its rival
Coca-Cola claims a market share of 51 while Pepsi has a share of 46 The
claims however remain disputed The other smaller players like Pure Drinks Ltd
claim the rest of the market The shares of the two lead players are consolidated
figures which include the respective bottlers Coca-Cola had approached the
government for a five year extension for divesting 49 equity in its bottling
subsidiary Hindustan Coca-Cola Holdings It had set up the marketing subsidiary
as part of its strategy to integrate all its bottling operations both company-
owned and franchisee bottlers apparently keeping in line with its global policy
All together it had bought initially over 38 franchisee bottlers
Kandhari Beverages coke bottlers for north have been eyeing to lift a stake in
Coca-Cola India Coca-Cola had filed an application to offload 49 stake of its
0
bottling operations in favour of their Indian operators Besides Kandhari three
other bottlers one each from Uttar Pradesh Gujarat and Jammu were lined up to
invest in Hindustan Coca-Cola Holding Kandhari has already invested Rs 300 mn
in 1999 and 2000 to upgrade its capacity The total investment by all the four
was expected to be Rs 1000 mn Both Coca-Cola and PepsiCo planned for the
launch of lemon-flavored versions of their products Both have been expanding
their non-carbonated drink line-ups as consumers seem to be shifting away from
carbonated soft drinks PepsiCo is deliberating whether to come out with Pepsi
Twist a cola mixed with lemon But while both companies have juice sports
drinks bottled water and other such drinks in their line-ups neither coke nor Pepsi
has launched a new national variety of a cola-flavoured carbonated soft drink in
years
PepsiCo had achieved Rs 3 bn worth of exports which include processed foods
basmati rice guar gum and soft drinks concentrate PepsiCo completed the second
phase of its expansion and with this expansion PepsiCo was to explore the
possibility of expanding the export of concentrates to more countries in addition to
the exports to Russia and other South Asian countries
Pepsi India has entered into a marketing tie up with Hindustan Lever to promote
sales of soft drinks through Pepsi-HLL network of vending machines and
fountains The major soft drink brand in the Pepsi stable are Pepsi 7UP Mirinda
Tropicana and Acquafina
As a major strategic departure both MNCs were expanding their brand range
Consequent to some diversifying moves at present the sales ratio of Coca-Cola
between soft drinks and other beverages is 955 The company intended to change
this to 8020 in the next three years Its juice brand Maaza - acquired from Parle a
0
few years ago - is being given a major thrust It has plans to go in for canned
coffee iced tea and purified categories under expansion schemes It has already
launched its bottled water brand Kinley in the Indian market Besides it is
intending to acquire domestic brands in the non-carbonated beverages segment
The global deal between Coca-Cola and PampG to form a snacks and beverages joint
venture company was reported to have slipped into rough weather The
PampG brand of potato wafer Pringles seemed to be faced with distribution
problems in India PampG had globally tied up with Coca-Cola to form a stand-alone
juice and snacks company The new firm is focused on developing and marketing
new juices juice based beverages and snacks on a global basis The Sharjah-based
Allied Beverages was pushing its Ahlan brand in India having entered the market
in mid-2000 Its target was carbonated drinks market in PET bottles Its plans
were to launch a PET bottle in the popular 300 ml category Ahlan expected to
gain a 12 share of the total PET bottle market in northern India Of the total
market PET bottle segment is approximately 12 Presently Allied Beverages
has a manufacturing unit at Dharuhera in Haryana The product range includes
carbonated drinks - cola orange lemon and soda in three pack sizes - 500 ml
1500 ml and 2000 ml Allied Beverages sells non-carbonated drinks in 200 ml
foodgrade cups priced at Rs 7 in its portfolio available in four different flavors
The companys future plans include pulp-based fruit drinks in flavors which will
be available in 200 ml non-returnable glass bottles
IFB Agro Industries has handed over the distribution rights of Cadbury Schweppes
in favour of Coco-Cola India following the global takeover of Schweppes
beverages by Coke The company still retains the bottling rights for the beverages
0
It was noticed for the first time during the summer of 2004 that soft drink
companies were registering a slower growth in the sale of bottled water at 20
compared to 35 in case of drinks
Lead Players amp Alliances
Company Share ()
Aradhana 34
Varun Beverages 15
Devyani Beverages 9
Kandhari Beverages 7
Ludhiana Beverages 7
Sri Sarvarya Sugars 6
Pearl Drinks 5
Pearl Beverages 6
0
Leading Brands
Coca Cola Thums Up Limca Fanta Gold Spot Rim Zim Maaza Pepsi Mirinda
7UP Mangola Slice Dukes Lemonada Crush Canada Dry Campa
Market Growth Rates
1990-91 - 1996-97 941996-97 - 2001-02 782001-02 - 2006-07 652004-05 - 2009-10 542009-10 - 2014-15 35 Sensitivity Coefficient 52Market Segmentation
Segment Share ()North 24East 18West 32South 26Rural 30Urban 70
0
Market Structure
Product Variation
Company Share ()Cola Drinks Thums Up 29Coca Cola 25Pepsi 18Non Cola Drinks Gold Spot 2Fanta 9Mirinda 8Limca 9Overall Colas 62Lemon Cloudy 7Clear 3Orange 17Mango 3Soda 8
(wwwmofpinicin)
0
Robust growth continues
The soft drinks industry continued on its path to recovery from the low growth seen between 2005 and 2006 with higher volume growth in 2008 than that seen in 2007 The mature sectors of bottled water fruitvegetable juice and carbonates saw a dynamic year with companies refreshing their productsrsquo brand image and packaging to attract new consumers Emerging product categories such as energy drinks and reconstituted 100 juice saw high double-digit growth rates as companies increased their productsrsquo penetration in India Off-trade volume growth was slightly higher than on-trade volume growth as convenient on-the-go packaging company sponsored chillers in kiranas and attractive supermarket displays fuelled off-trade sales across the market
Companies reposition their brands and update product portfolios
With the industry back on the upward growth curve companies refreshed their brands by introducing new and more premium packaging designs pack sizes and communication campaigns In 2008 bottled water was especially dynamic with all the major national brands following the cue of Bislerirsquos rebranding in late 2007 Carbonates and juice drinks were also reinvigorated with new pack sizes that targeted on-the-go consumption by young adults With ldquonaturally healthyrdquo becoming a key focus for consumers and manufacturers fruitvegetable drinks companies focused their efforts on highlighting their productsrsquo fresh fruit content and health attributes Companies put in motion plans to extend their product portfolios to emerging categories such as 100 juice energy drinks and flavoured water
Indian Product Range
0
Flavour Ingredients Pack Product Company
Cola Cola Flavour carbonated water sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Coke
Thumsup
RC
Pepsi
Coca-Coal
RC cola
Pepsi
Orange Orange Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Fanta
Mirinda
Coca-Cola
Pepsi
Fruit Juice Mango Pulp+ Treated water+ sugar
250 ML Maaza
Minute Maid Pullpy Orange
Slice
Tropicana
Appy Fizz
Real
Coca-Cola
Pepsi
Appy FizzDabur
Cloudy Lemon
Lemon Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Limca
LMN
Mirinda Lemon
Nimbooz
Coca-Cola
Parle agro
Pepsi
Clear Lemon Lemon Flavour+ Carbonated Water + Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Sprite
7rsquoUp
Dew
Coca-Cola
Pepsi
Rural Market Scenario
0
Indian Rural Market
The Indian growth story is now spreading itself to Indias hinterlands Rural India home to about two-thirds of the countryrsquos 1 billion population is not just witnessing an increase in its income but also in consumption and production The interim Budgets focus on extending the National Rural Employment Guarantee Act (NREGA) to all states with a US$ 583 billion outlay for 2009-10 would benefit the rural economy The rural economy got a further boost with the farmer loan waiver of US$ 1386 billion and the ambitious Bharat Nirman Programme with an outlay of US$ 3484 billion for improving rural infrastructure Additionally the rural economy has not been impacted by the global economic slowdown according to a recent study by the Rural Marketing Association of India (RMAI) The study found that the rural and small town economy which accounts for 60 per cent of Indiarsquos income has remained insulated from the economic slowdown Moreover rural incomes are on the rise driven largely due to continuous growth in agriculture for four consecutive years According to a McKinsey survey conducted in 2007 the rural India market would grow almost four times from its existing size in 2007 which was estimated at US$ 577 billion Furthermore high-end brands like Tommy Hilfiger are also bullish on small towns Small towns currently contribute around 20 per cent of the brandrsquos sales This could go up to one-third in two yearsrsquo time
lsquoRuralrsquo ndash 75 population engaged in agriculture related activity According to industry estimates 70 of population engaged in agricultural
activity1048699 700 million people (Aug 2002)1048699 13rd of countryrsquos GNP1048699 450 districts 630000 villages approx
Rural India is also characterized by growing affluenceagricultural output increasingly to early 215 millions tones in 2004 compared to 176 millions in 1991
Key to success in Rural India
0
Physical Distribution Channel Management Promotion and Marketing Communication
Rural Marketing Key Strategy
Three As
Availability Capacity expansion ndash 25 prod lines and doubled bottle capacity Unique and different distribution strategy ndash hub amp spoke
distribution Coverage of 158342 villages by Aug 2003 (81383 in 2001) 200000 refrigerators to rural retailers
Affordability Introduction of 200ml bottle Priced at Rs 7 closed the gap
between Coke and basic refreshments
Acceptability Mass media marketing Launched TVCs targeted at rural consumers
0
0
LITERATURE REVIEW
1-A study of factors responsible for brand preference in fmcg sectorrdquo The purpose of this paper is the study of factors responsible for brand preference in fmcg products increasing competition more due to globalization is motivating many companies to base their strategies almost entirely on building brands Brand preference means to compare the different brands and opt for the most preferred brand This brand preference is influenced by various factorsAccording to this study many factors were find out for preferring a brand likeBrand persona Brand constancyBrand loftinessBrand valueIn the identification of factors affecting the brand preference it was concluded that brand persona is the most effective factor that affects the brand preference This brand persona deals with the personality aspects or the external attributes of brand thus it can be said that consumer prefer any brand by looking at the external attributes of a brand
-journal of ims vol 5 no1 jan-june 2008
2-Colour and flavour rule consumer preferences Study
The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse ldquoCompanies need to continuously innovate to maintain market leadershiprdquo wrote the researchers ldquoWhen the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumersrdquo ldquoThis experiment
0
showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approachesrdquo The study also demonstrates the importance of flavour and colour selection for new products
The global flavours market was been valued at some US$18bn in 2006 (Business Insights) Meanwhile the value of the international colourings market was estimated at around $115bn in 2007 (euro731m) up 25 per cent from $107bn (680m) in 2004 according to Leatherhead Food International (LFI) Natural colours now make up 31 per cent of the colourings market compared with 40 per cent for synthetics according to LFI
Bombarding the senses
By choosing to formulate a new beverage the researchers noted that the new product would need to be differentiated by improving the sensory characteristics
Four factors were identified for the formulation four colour intensities) three flavourings two label types (soft versus hard) and two pack sizes (standard versus oversize) By using both quantitative (hedonic testing) and qualitative (focus groups) approaches the researchers found that ldquothe main factors which drive consumer preference for this concept are colour intensity and flavouringrdquo Indeed colour intensity accounted for 43 per cent and flavour 32 per cent of the consumersrsquo overall liking ldquoPack size and label type are taken into account by the consumer to a lesser extendrdquo they added ldquoThis methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumersrsquo expectation it has now to be reproduced as every brand concept and product is a unique combination designed for a specific consumer grouprdquo concluded the researchers
Source Food Quality and PreferenceVolume 19 Issue 8 Pages 719-726By Stephen Daniells 07-Oct-2008
0
3- Taste or health A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits Data were analyzed 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 saltiness drinks flavor and greasiness These variables emerged as the first factor in the analysis suggesting 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 respondents attitudes toward fat in the diet Factor 3 comprised two remaining sensory attributes (color 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
Source-Beverly J Tepper and Amy C Trail Journal of Food Science and Technology 15 September 1998
Rural Consumer BehaviorConsumer Buyer Behavior refers to the buying behavior of final consumers ndash individuals and households who buy goods and services for personal consumption All of these final consumers combined make up the consumer market The consumer market in this case is Rural India About 70 of Indias population lives in rural areas There are more than 600000 villages in the country as against about 300 cities and 4600 towns Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use Villagers react differently to different products colors sizes etc in different parts of India Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India Thus it is important to study the thought process that goes into making a purchase decision so that marketers can reach this huge untapped segment
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
History of the Industry
SOFT DRINK INDUSTRIES IN INDIA- A soft drink is a non-alcoholic
beverage It is artificially flavored and contains no fruit or pulp India with population
of more than 100 crores is potentially one of the largest consumer markets in the
world after China The consumer market can be defined as the market for products
and services that are purchased by individuals as households goods for their personal
consumption Soft drink is a typical consumer product purchased by individuals to
quench thirst and secondly for refreshment Searching for the point of Indian soft
drinks we first document on Gold Spot this was the first brand soft drink in India It
was introduced by PARLE during later part of 40rsquos
Cola giant Coca-Cola was the first foreign soft drink to be introduced in India in
1965 Coca-Cola make a very good beginning and dominated the whole scheme right
from the word go It (Coca-Cola) faced no competition at that time COCA COLA
entered India in the year 1993 In collaboration with PARLE INDIA LTD
The marketing people did not even receive to publicize Coca-Cola for it sold first
like probability not-cakes This extraordinary success of soft drinks can be
attributed to the following factors-
Absence of contemporary competitive brand
Euphoric image built up in the Western countries proceeded the entry
into Indian Market and
Indians are very found by nature of foreign goods services etc due to
prolonged foreign rules
Parle Exports (P) Ltd later in 1970 introduced Limca Lemony Soft drinks Before
Limca introduce they had tentatively introduced Cola Pepino which they had to
soon withdraw in the face of battering confrontation with Coca-Cola
0
Three of four groups of Indians companies who had the required production capacity
started their own brands of Cola Lemon Orange but failed to achieve their goal on a
national basis India always has love and hate relationship with MNCrsquos which gave a
significant opportunities to soft drink industries in India when Coca-Cola decided to
windup its operation in 1977 rather than bowing to the Indian government insisting
on-
Dilution of equity as the government felt that lots of foreign currency was
being wasted
Manufacturing of the top-secret concentration in India
Disclose of the chemical composition of the essence
This left a large vacuum in the popular soft drink market and a vista was opened to
any company with the requisite technical marketing and organizational skills
The exit of Coca-Cola from India in 1977 accelerated the growth of several Indian
Soft Drink New soft drink in the form of Tetra pack entered the market among
Frooti Jump-In and Treetop were the prominent once Till 1977 their equipped
bottling plants and the distribution network a longing to be of no use It took them one
year to develop new formula to survive and gradually came up with Campa Lemon
Orange and Cola that order
However Parle the pioneer in the soft drinks blazed its way to national prominence
with their product ldquoThumps Uprdquo bearing the slogan ldquoHappy Days Are Here Againrdquo
This particular slogan helped to win over the loyalists or addicts to Coca-Cola who
was in the state of ldquoCola Shockrdquo or Cola Depression Soon the Indian Soft drink
industry started at a phenomenal rate and all Parle Products Gold Spot Limca and
Thumps Up became the brand leader in their own segment In spite of all these the
drink market still has large gap as claim by soft drink manufacturers To fill these
gaps there are many soft drinks concentrate and squashes flooded the market The
Indian soft markets basically offered three flavors ie Orange Lemon and Cola
0
Words of Ministry of Food Processing
Industry for Soft Drink Industry
The 50-bn-rupee soft drink industry is growing now at 6 to 7 annually In India
Coke and Pepsi have a combined market share of around 95 directly or through
franchisees Campa Cola has a 1 share and the rest is divided among local
players Industry watchers say fake products also account for a good share of the
balance There are about 110 soft drink producing units (60 being owned by
Indian bottlers) in the country employing about 125000 people There are two
distinct segments of the market cola and non-cola drinks The cola segment claims
a share of 62 while the non-cola segment includes soda clear lime cloudy lime
and drinks with orange and mango flavors
The per capita consumption of soft drinks in India is around 5 to 6 bottles (same as
Nepals) compared to Pakistans 17 bottles Sri Lankas 21 Thailands 73 the
Philippines 173 and Mexico 605 The industry contributes over Rs 12 bn to the
exchequer and exports goods worth Rs 2 bn It also supports growth of industries
like glass refrigeration transportation paper and sugar The Department of Food
Processing Industries had stipulated that contains-no-fruit-juice labels be pasted
on returnable glass bottles About 85 of the soft drinks are currently sold in
returnable bottles There was a floating stock of about 1000 mn bottles valued at
Rs 6 bn If the industry were to abide by the new guidelines it would have to
invest in new bottles resulting in a cost outgo of Rs 5 bn Neither Coke nor Pepsi
is in a position to invest such a large amount
0
Around 400000 tonnes of raw material would be required to replace the existing
stock of bottles Instead the soft drink industry suggested that a seven-year
moratorium be extended to the industry so that it can incorporate the change in a
phased manner There is no such mandatory requirement anywhere in the world to
specifically label the glass surface of returnable bottles The government has
decided to extend the date for replacing the bottles to end-march 2006 In the
meantime the producers have shifted substantially to the use of PET bottles
Soft and aerated drinks were considered products for the middle class and the
affluent That segregation is no more valid Soft and aerated drinks are consumed
by all except those who cannot afford to buy any drink An NCAER study says
that 91 soft drink sales are made to the lower middle and upper middle classes
The soft drink industry has been urging the government to categorize aerated
waters (soft drinks) equitably with other consumer products of mass consumption
and remove special excise duty
The industry estimates that the beverage market should grow at twice the rate of
GDP growth The Indian market should have therefore grown by at least 12
However it has been growing at a rate of about 6 In contrast the Chinese
market grew by 16 a year while the Russian market expanded at almost four
times the rate of growth of the Indian market
It may be recalled that Coca-Cola the worlds number one player was present in
India for a long time in collaboration with an Indian producer but was thrown out
in the late 1970s It reappeared in India following the economic liberalization era
- but after its rival worlds number two had already entered in a big way following
a long and tough fight against the opposition from the domestic producers When
Coca-Cola re-entered it installed a new milestone It acquired the well flourishing
0
Indias top player Parle Since then it is basically a fight between the two
American giants Others are playing a peripheral role as adjuncts to the two
MNCs Worlds third biggest player Cadbury Schweppes had also made an
entry but was gobbled up by Coca-Cola When Coca-Cola acquired Parle brands it
was in fact buying the bottling facilities the marketing network and the
established consumer preference during the market build-up The brands were a
drag on the global brand Since Coca-Cola was not interested in brands (like
Thumps Up) it did not promote them The result at least in the short run was a
loss of the market to the competitor Coca-Cola decided to market more effectively
the Parle brands It had in its armoury Coke Thumps Up Limca and Fanta The
latest to enter market was Parlersquos erstwhile Rimzim alongside Portello a black
currant flavoured drink very popular in Srilanka
Coca-Cola operates through 35 plants and 16 franchisees throughout the country
while PepsiCo has 20 plants but it has 7 more franchisees at 23 to 16 of its rival
Coca-Cola claims a market share of 51 while Pepsi has a share of 46 The
claims however remain disputed The other smaller players like Pure Drinks Ltd
claim the rest of the market The shares of the two lead players are consolidated
figures which include the respective bottlers Coca-Cola had approached the
government for a five year extension for divesting 49 equity in its bottling
subsidiary Hindustan Coca-Cola Holdings It had set up the marketing subsidiary
as part of its strategy to integrate all its bottling operations both company-
owned and franchisee bottlers apparently keeping in line with its global policy
All together it had bought initially over 38 franchisee bottlers
Kandhari Beverages coke bottlers for north have been eyeing to lift a stake in
Coca-Cola India Coca-Cola had filed an application to offload 49 stake of its
0
bottling operations in favour of their Indian operators Besides Kandhari three
other bottlers one each from Uttar Pradesh Gujarat and Jammu were lined up to
invest in Hindustan Coca-Cola Holding Kandhari has already invested Rs 300 mn
in 1999 and 2000 to upgrade its capacity The total investment by all the four
was expected to be Rs 1000 mn Both Coca-Cola and PepsiCo planned for the
launch of lemon-flavored versions of their products Both have been expanding
their non-carbonated drink line-ups as consumers seem to be shifting away from
carbonated soft drinks PepsiCo is deliberating whether to come out with Pepsi
Twist a cola mixed with lemon But while both companies have juice sports
drinks bottled water and other such drinks in their line-ups neither coke nor Pepsi
has launched a new national variety of a cola-flavoured carbonated soft drink in
years
PepsiCo had achieved Rs 3 bn worth of exports which include processed foods
basmati rice guar gum and soft drinks concentrate PepsiCo completed the second
phase of its expansion and with this expansion PepsiCo was to explore the
possibility of expanding the export of concentrates to more countries in addition to
the exports to Russia and other South Asian countries
Pepsi India has entered into a marketing tie up with Hindustan Lever to promote
sales of soft drinks through Pepsi-HLL network of vending machines and
fountains The major soft drink brand in the Pepsi stable are Pepsi 7UP Mirinda
Tropicana and Acquafina
As a major strategic departure both MNCs were expanding their brand range
Consequent to some diversifying moves at present the sales ratio of Coca-Cola
between soft drinks and other beverages is 955 The company intended to change
this to 8020 in the next three years Its juice brand Maaza - acquired from Parle a
0
few years ago - is being given a major thrust It has plans to go in for canned
coffee iced tea and purified categories under expansion schemes It has already
launched its bottled water brand Kinley in the Indian market Besides it is
intending to acquire domestic brands in the non-carbonated beverages segment
The global deal between Coca-Cola and PampG to form a snacks and beverages joint
venture company was reported to have slipped into rough weather The
PampG brand of potato wafer Pringles seemed to be faced with distribution
problems in India PampG had globally tied up with Coca-Cola to form a stand-alone
juice and snacks company The new firm is focused on developing and marketing
new juices juice based beverages and snacks on a global basis The Sharjah-based
Allied Beverages was pushing its Ahlan brand in India having entered the market
in mid-2000 Its target was carbonated drinks market in PET bottles Its plans
were to launch a PET bottle in the popular 300 ml category Ahlan expected to
gain a 12 share of the total PET bottle market in northern India Of the total
market PET bottle segment is approximately 12 Presently Allied Beverages
has a manufacturing unit at Dharuhera in Haryana The product range includes
carbonated drinks - cola orange lemon and soda in three pack sizes - 500 ml
1500 ml and 2000 ml Allied Beverages sells non-carbonated drinks in 200 ml
foodgrade cups priced at Rs 7 in its portfolio available in four different flavors
The companys future plans include pulp-based fruit drinks in flavors which will
be available in 200 ml non-returnable glass bottles
IFB Agro Industries has handed over the distribution rights of Cadbury Schweppes
in favour of Coco-Cola India following the global takeover of Schweppes
beverages by Coke The company still retains the bottling rights for the beverages
0
It was noticed for the first time during the summer of 2004 that soft drink
companies were registering a slower growth in the sale of bottled water at 20
compared to 35 in case of drinks
Lead Players amp Alliances
Company Share ()
Aradhana 34
Varun Beverages 15
Devyani Beverages 9
Kandhari Beverages 7
Ludhiana Beverages 7
Sri Sarvarya Sugars 6
Pearl Drinks 5
Pearl Beverages 6
0
Leading Brands
Coca Cola Thums Up Limca Fanta Gold Spot Rim Zim Maaza Pepsi Mirinda
7UP Mangola Slice Dukes Lemonada Crush Canada Dry Campa
Market Growth Rates
1990-91 - 1996-97 941996-97 - 2001-02 782001-02 - 2006-07 652004-05 - 2009-10 542009-10 - 2014-15 35 Sensitivity Coefficient 52Market Segmentation
Segment Share ()North 24East 18West 32South 26Rural 30Urban 70
0
Market Structure
Product Variation
Company Share ()Cola Drinks Thums Up 29Coca Cola 25Pepsi 18Non Cola Drinks Gold Spot 2Fanta 9Mirinda 8Limca 9Overall Colas 62Lemon Cloudy 7Clear 3Orange 17Mango 3Soda 8
(wwwmofpinicin)
0
Robust growth continues
The soft drinks industry continued on its path to recovery from the low growth seen between 2005 and 2006 with higher volume growth in 2008 than that seen in 2007 The mature sectors of bottled water fruitvegetable juice and carbonates saw a dynamic year with companies refreshing their productsrsquo brand image and packaging to attract new consumers Emerging product categories such as energy drinks and reconstituted 100 juice saw high double-digit growth rates as companies increased their productsrsquo penetration in India Off-trade volume growth was slightly higher than on-trade volume growth as convenient on-the-go packaging company sponsored chillers in kiranas and attractive supermarket displays fuelled off-trade sales across the market
Companies reposition their brands and update product portfolios
With the industry back on the upward growth curve companies refreshed their brands by introducing new and more premium packaging designs pack sizes and communication campaigns In 2008 bottled water was especially dynamic with all the major national brands following the cue of Bislerirsquos rebranding in late 2007 Carbonates and juice drinks were also reinvigorated with new pack sizes that targeted on-the-go consumption by young adults With ldquonaturally healthyrdquo becoming a key focus for consumers and manufacturers fruitvegetable drinks companies focused their efforts on highlighting their productsrsquo fresh fruit content and health attributes Companies put in motion plans to extend their product portfolios to emerging categories such as 100 juice energy drinks and flavoured water
Indian Product Range
0
Flavour Ingredients Pack Product Company
Cola Cola Flavour carbonated water sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Coke
Thumsup
RC
Pepsi
Coca-Coal
RC cola
Pepsi
Orange Orange Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Fanta
Mirinda
Coca-Cola
Pepsi
Fruit Juice Mango Pulp+ Treated water+ sugar
250 ML Maaza
Minute Maid Pullpy Orange
Slice
Tropicana
Appy Fizz
Real
Coca-Cola
Pepsi
Appy FizzDabur
Cloudy Lemon
Lemon Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Limca
LMN
Mirinda Lemon
Nimbooz
Coca-Cola
Parle agro
Pepsi
Clear Lemon Lemon Flavour+ Carbonated Water + Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Sprite
7rsquoUp
Dew
Coca-Cola
Pepsi
Rural Market Scenario
0
Indian Rural Market
The Indian growth story is now spreading itself to Indias hinterlands Rural India home to about two-thirds of the countryrsquos 1 billion population is not just witnessing an increase in its income but also in consumption and production The interim Budgets focus on extending the National Rural Employment Guarantee Act (NREGA) to all states with a US$ 583 billion outlay for 2009-10 would benefit the rural economy The rural economy got a further boost with the farmer loan waiver of US$ 1386 billion and the ambitious Bharat Nirman Programme with an outlay of US$ 3484 billion for improving rural infrastructure Additionally the rural economy has not been impacted by the global economic slowdown according to a recent study by the Rural Marketing Association of India (RMAI) The study found that the rural and small town economy which accounts for 60 per cent of Indiarsquos income has remained insulated from the economic slowdown Moreover rural incomes are on the rise driven largely due to continuous growth in agriculture for four consecutive years According to a McKinsey survey conducted in 2007 the rural India market would grow almost four times from its existing size in 2007 which was estimated at US$ 577 billion Furthermore high-end brands like Tommy Hilfiger are also bullish on small towns Small towns currently contribute around 20 per cent of the brandrsquos sales This could go up to one-third in two yearsrsquo time
lsquoRuralrsquo ndash 75 population engaged in agriculture related activity According to industry estimates 70 of population engaged in agricultural
activity1048699 700 million people (Aug 2002)1048699 13rd of countryrsquos GNP1048699 450 districts 630000 villages approx
Rural India is also characterized by growing affluenceagricultural output increasingly to early 215 millions tones in 2004 compared to 176 millions in 1991
Key to success in Rural India
0
Physical Distribution Channel Management Promotion and Marketing Communication
Rural Marketing Key Strategy
Three As
Availability Capacity expansion ndash 25 prod lines and doubled bottle capacity Unique and different distribution strategy ndash hub amp spoke
distribution Coverage of 158342 villages by Aug 2003 (81383 in 2001) 200000 refrigerators to rural retailers
Affordability Introduction of 200ml bottle Priced at Rs 7 closed the gap
between Coke and basic refreshments
Acceptability Mass media marketing Launched TVCs targeted at rural consumers
0
0
LITERATURE REVIEW
1-A study of factors responsible for brand preference in fmcg sectorrdquo The purpose of this paper is the study of factors responsible for brand preference in fmcg products increasing competition more due to globalization is motivating many companies to base their strategies almost entirely on building brands Brand preference means to compare the different brands and opt for the most preferred brand This brand preference is influenced by various factorsAccording to this study many factors were find out for preferring a brand likeBrand persona Brand constancyBrand loftinessBrand valueIn the identification of factors affecting the brand preference it was concluded that brand persona is the most effective factor that affects the brand preference This brand persona deals with the personality aspects or the external attributes of brand thus it can be said that consumer prefer any brand by looking at the external attributes of a brand
-journal of ims vol 5 no1 jan-june 2008
2-Colour and flavour rule consumer preferences Study
The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse ldquoCompanies need to continuously innovate to maintain market leadershiprdquo wrote the researchers ldquoWhen the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumersrdquo ldquoThis experiment
0
showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approachesrdquo The study also demonstrates the importance of flavour and colour selection for new products
The global flavours market was been valued at some US$18bn in 2006 (Business Insights) Meanwhile the value of the international colourings market was estimated at around $115bn in 2007 (euro731m) up 25 per cent from $107bn (680m) in 2004 according to Leatherhead Food International (LFI) Natural colours now make up 31 per cent of the colourings market compared with 40 per cent for synthetics according to LFI
Bombarding the senses
By choosing to formulate a new beverage the researchers noted that the new product would need to be differentiated by improving the sensory characteristics
Four factors were identified for the formulation four colour intensities) three flavourings two label types (soft versus hard) and two pack sizes (standard versus oversize) By using both quantitative (hedonic testing) and qualitative (focus groups) approaches the researchers found that ldquothe main factors which drive consumer preference for this concept are colour intensity and flavouringrdquo Indeed colour intensity accounted for 43 per cent and flavour 32 per cent of the consumersrsquo overall liking ldquoPack size and label type are taken into account by the consumer to a lesser extendrdquo they added ldquoThis methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumersrsquo expectation it has now to be reproduced as every brand concept and product is a unique combination designed for a specific consumer grouprdquo concluded the researchers
Source Food Quality and PreferenceVolume 19 Issue 8 Pages 719-726By Stephen Daniells 07-Oct-2008
0
3- Taste or health A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits Data were analyzed 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 saltiness drinks flavor and greasiness These variables emerged as the first factor in the analysis suggesting 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 respondents attitudes toward fat in the diet Factor 3 comprised two remaining sensory attributes (color 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
Source-Beverly J Tepper and Amy C Trail Journal of Food Science and Technology 15 September 1998
Rural Consumer BehaviorConsumer Buyer Behavior refers to the buying behavior of final consumers ndash individuals and households who buy goods and services for personal consumption All of these final consumers combined make up the consumer market The consumer market in this case is Rural India About 70 of Indias population lives in rural areas There are more than 600000 villages in the country as against about 300 cities and 4600 towns Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use Villagers react differently to different products colors sizes etc in different parts of India Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India Thus it is important to study the thought process that goes into making a purchase decision so that marketers can reach this huge untapped segment
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
Three of four groups of Indians companies who had the required production capacity
started their own brands of Cola Lemon Orange but failed to achieve their goal on a
national basis India always has love and hate relationship with MNCrsquos which gave a
significant opportunities to soft drink industries in India when Coca-Cola decided to
windup its operation in 1977 rather than bowing to the Indian government insisting
on-
Dilution of equity as the government felt that lots of foreign currency was
being wasted
Manufacturing of the top-secret concentration in India
Disclose of the chemical composition of the essence
This left a large vacuum in the popular soft drink market and a vista was opened to
any company with the requisite technical marketing and organizational skills
The exit of Coca-Cola from India in 1977 accelerated the growth of several Indian
Soft Drink New soft drink in the form of Tetra pack entered the market among
Frooti Jump-In and Treetop were the prominent once Till 1977 their equipped
bottling plants and the distribution network a longing to be of no use It took them one
year to develop new formula to survive and gradually came up with Campa Lemon
Orange and Cola that order
However Parle the pioneer in the soft drinks blazed its way to national prominence
with their product ldquoThumps Uprdquo bearing the slogan ldquoHappy Days Are Here Againrdquo
This particular slogan helped to win over the loyalists or addicts to Coca-Cola who
was in the state of ldquoCola Shockrdquo or Cola Depression Soon the Indian Soft drink
industry started at a phenomenal rate and all Parle Products Gold Spot Limca and
Thumps Up became the brand leader in their own segment In spite of all these the
drink market still has large gap as claim by soft drink manufacturers To fill these
gaps there are many soft drinks concentrate and squashes flooded the market The
Indian soft markets basically offered three flavors ie Orange Lemon and Cola
0
Words of Ministry of Food Processing
Industry for Soft Drink Industry
The 50-bn-rupee soft drink industry is growing now at 6 to 7 annually In India
Coke and Pepsi have a combined market share of around 95 directly or through
franchisees Campa Cola has a 1 share and the rest is divided among local
players Industry watchers say fake products also account for a good share of the
balance There are about 110 soft drink producing units (60 being owned by
Indian bottlers) in the country employing about 125000 people There are two
distinct segments of the market cola and non-cola drinks The cola segment claims
a share of 62 while the non-cola segment includes soda clear lime cloudy lime
and drinks with orange and mango flavors
The per capita consumption of soft drinks in India is around 5 to 6 bottles (same as
Nepals) compared to Pakistans 17 bottles Sri Lankas 21 Thailands 73 the
Philippines 173 and Mexico 605 The industry contributes over Rs 12 bn to the
exchequer and exports goods worth Rs 2 bn It also supports growth of industries
like glass refrigeration transportation paper and sugar The Department of Food
Processing Industries had stipulated that contains-no-fruit-juice labels be pasted
on returnable glass bottles About 85 of the soft drinks are currently sold in
returnable bottles There was a floating stock of about 1000 mn bottles valued at
Rs 6 bn If the industry were to abide by the new guidelines it would have to
invest in new bottles resulting in a cost outgo of Rs 5 bn Neither Coke nor Pepsi
is in a position to invest such a large amount
0
Around 400000 tonnes of raw material would be required to replace the existing
stock of bottles Instead the soft drink industry suggested that a seven-year
moratorium be extended to the industry so that it can incorporate the change in a
phased manner There is no such mandatory requirement anywhere in the world to
specifically label the glass surface of returnable bottles The government has
decided to extend the date for replacing the bottles to end-march 2006 In the
meantime the producers have shifted substantially to the use of PET bottles
Soft and aerated drinks were considered products for the middle class and the
affluent That segregation is no more valid Soft and aerated drinks are consumed
by all except those who cannot afford to buy any drink An NCAER study says
that 91 soft drink sales are made to the lower middle and upper middle classes
The soft drink industry has been urging the government to categorize aerated
waters (soft drinks) equitably with other consumer products of mass consumption
and remove special excise duty
The industry estimates that the beverage market should grow at twice the rate of
GDP growth The Indian market should have therefore grown by at least 12
However it has been growing at a rate of about 6 In contrast the Chinese
market grew by 16 a year while the Russian market expanded at almost four
times the rate of growth of the Indian market
It may be recalled that Coca-Cola the worlds number one player was present in
India for a long time in collaboration with an Indian producer but was thrown out
in the late 1970s It reappeared in India following the economic liberalization era
- but after its rival worlds number two had already entered in a big way following
a long and tough fight against the opposition from the domestic producers When
Coca-Cola re-entered it installed a new milestone It acquired the well flourishing
0
Indias top player Parle Since then it is basically a fight between the two
American giants Others are playing a peripheral role as adjuncts to the two
MNCs Worlds third biggest player Cadbury Schweppes had also made an
entry but was gobbled up by Coca-Cola When Coca-Cola acquired Parle brands it
was in fact buying the bottling facilities the marketing network and the
established consumer preference during the market build-up The brands were a
drag on the global brand Since Coca-Cola was not interested in brands (like
Thumps Up) it did not promote them The result at least in the short run was a
loss of the market to the competitor Coca-Cola decided to market more effectively
the Parle brands It had in its armoury Coke Thumps Up Limca and Fanta The
latest to enter market was Parlersquos erstwhile Rimzim alongside Portello a black
currant flavoured drink very popular in Srilanka
Coca-Cola operates through 35 plants and 16 franchisees throughout the country
while PepsiCo has 20 plants but it has 7 more franchisees at 23 to 16 of its rival
Coca-Cola claims a market share of 51 while Pepsi has a share of 46 The
claims however remain disputed The other smaller players like Pure Drinks Ltd
claim the rest of the market The shares of the two lead players are consolidated
figures which include the respective bottlers Coca-Cola had approached the
government for a five year extension for divesting 49 equity in its bottling
subsidiary Hindustan Coca-Cola Holdings It had set up the marketing subsidiary
as part of its strategy to integrate all its bottling operations both company-
owned and franchisee bottlers apparently keeping in line with its global policy
All together it had bought initially over 38 franchisee bottlers
Kandhari Beverages coke bottlers for north have been eyeing to lift a stake in
Coca-Cola India Coca-Cola had filed an application to offload 49 stake of its
0
bottling operations in favour of their Indian operators Besides Kandhari three
other bottlers one each from Uttar Pradesh Gujarat and Jammu were lined up to
invest in Hindustan Coca-Cola Holding Kandhari has already invested Rs 300 mn
in 1999 and 2000 to upgrade its capacity The total investment by all the four
was expected to be Rs 1000 mn Both Coca-Cola and PepsiCo planned for the
launch of lemon-flavored versions of their products Both have been expanding
their non-carbonated drink line-ups as consumers seem to be shifting away from
carbonated soft drinks PepsiCo is deliberating whether to come out with Pepsi
Twist a cola mixed with lemon But while both companies have juice sports
drinks bottled water and other such drinks in their line-ups neither coke nor Pepsi
has launched a new national variety of a cola-flavoured carbonated soft drink in
years
PepsiCo had achieved Rs 3 bn worth of exports which include processed foods
basmati rice guar gum and soft drinks concentrate PepsiCo completed the second
phase of its expansion and with this expansion PepsiCo was to explore the
possibility of expanding the export of concentrates to more countries in addition to
the exports to Russia and other South Asian countries
Pepsi India has entered into a marketing tie up with Hindustan Lever to promote
sales of soft drinks through Pepsi-HLL network of vending machines and
fountains The major soft drink brand in the Pepsi stable are Pepsi 7UP Mirinda
Tropicana and Acquafina
As a major strategic departure both MNCs were expanding their brand range
Consequent to some diversifying moves at present the sales ratio of Coca-Cola
between soft drinks and other beverages is 955 The company intended to change
this to 8020 in the next three years Its juice brand Maaza - acquired from Parle a
0
few years ago - is being given a major thrust It has plans to go in for canned
coffee iced tea and purified categories under expansion schemes It has already
launched its bottled water brand Kinley in the Indian market Besides it is
intending to acquire domestic brands in the non-carbonated beverages segment
The global deal between Coca-Cola and PampG to form a snacks and beverages joint
venture company was reported to have slipped into rough weather The
PampG brand of potato wafer Pringles seemed to be faced with distribution
problems in India PampG had globally tied up with Coca-Cola to form a stand-alone
juice and snacks company The new firm is focused on developing and marketing
new juices juice based beverages and snacks on a global basis The Sharjah-based
Allied Beverages was pushing its Ahlan brand in India having entered the market
in mid-2000 Its target was carbonated drinks market in PET bottles Its plans
were to launch a PET bottle in the popular 300 ml category Ahlan expected to
gain a 12 share of the total PET bottle market in northern India Of the total
market PET bottle segment is approximately 12 Presently Allied Beverages
has a manufacturing unit at Dharuhera in Haryana The product range includes
carbonated drinks - cola orange lemon and soda in three pack sizes - 500 ml
1500 ml and 2000 ml Allied Beverages sells non-carbonated drinks in 200 ml
foodgrade cups priced at Rs 7 in its portfolio available in four different flavors
The companys future plans include pulp-based fruit drinks in flavors which will
be available in 200 ml non-returnable glass bottles
IFB Agro Industries has handed over the distribution rights of Cadbury Schweppes
in favour of Coco-Cola India following the global takeover of Schweppes
beverages by Coke The company still retains the bottling rights for the beverages
0
It was noticed for the first time during the summer of 2004 that soft drink
companies were registering a slower growth in the sale of bottled water at 20
compared to 35 in case of drinks
Lead Players amp Alliances
Company Share ()
Aradhana 34
Varun Beverages 15
Devyani Beverages 9
Kandhari Beverages 7
Ludhiana Beverages 7
Sri Sarvarya Sugars 6
Pearl Drinks 5
Pearl Beverages 6
0
Leading Brands
Coca Cola Thums Up Limca Fanta Gold Spot Rim Zim Maaza Pepsi Mirinda
7UP Mangola Slice Dukes Lemonada Crush Canada Dry Campa
Market Growth Rates
1990-91 - 1996-97 941996-97 - 2001-02 782001-02 - 2006-07 652004-05 - 2009-10 542009-10 - 2014-15 35 Sensitivity Coefficient 52Market Segmentation
Segment Share ()North 24East 18West 32South 26Rural 30Urban 70
0
Market Structure
Product Variation
Company Share ()Cola Drinks Thums Up 29Coca Cola 25Pepsi 18Non Cola Drinks Gold Spot 2Fanta 9Mirinda 8Limca 9Overall Colas 62Lemon Cloudy 7Clear 3Orange 17Mango 3Soda 8
(wwwmofpinicin)
0
Robust growth continues
The soft drinks industry continued on its path to recovery from the low growth seen between 2005 and 2006 with higher volume growth in 2008 than that seen in 2007 The mature sectors of bottled water fruitvegetable juice and carbonates saw a dynamic year with companies refreshing their productsrsquo brand image and packaging to attract new consumers Emerging product categories such as energy drinks and reconstituted 100 juice saw high double-digit growth rates as companies increased their productsrsquo penetration in India Off-trade volume growth was slightly higher than on-trade volume growth as convenient on-the-go packaging company sponsored chillers in kiranas and attractive supermarket displays fuelled off-trade sales across the market
Companies reposition their brands and update product portfolios
With the industry back on the upward growth curve companies refreshed their brands by introducing new and more premium packaging designs pack sizes and communication campaigns In 2008 bottled water was especially dynamic with all the major national brands following the cue of Bislerirsquos rebranding in late 2007 Carbonates and juice drinks were also reinvigorated with new pack sizes that targeted on-the-go consumption by young adults With ldquonaturally healthyrdquo becoming a key focus for consumers and manufacturers fruitvegetable drinks companies focused their efforts on highlighting their productsrsquo fresh fruit content and health attributes Companies put in motion plans to extend their product portfolios to emerging categories such as 100 juice energy drinks and flavoured water
Indian Product Range
0
Flavour Ingredients Pack Product Company
Cola Cola Flavour carbonated water sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Coke
Thumsup
RC
Pepsi
Coca-Coal
RC cola
Pepsi
Orange Orange Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Fanta
Mirinda
Coca-Cola
Pepsi
Fruit Juice Mango Pulp+ Treated water+ sugar
250 ML Maaza
Minute Maid Pullpy Orange
Slice
Tropicana
Appy Fizz
Real
Coca-Cola
Pepsi
Appy FizzDabur
Cloudy Lemon
Lemon Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Limca
LMN
Mirinda Lemon
Nimbooz
Coca-Cola
Parle agro
Pepsi
Clear Lemon Lemon Flavour+ Carbonated Water + Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Sprite
7rsquoUp
Dew
Coca-Cola
Pepsi
Rural Market Scenario
0
Indian Rural Market
The Indian growth story is now spreading itself to Indias hinterlands Rural India home to about two-thirds of the countryrsquos 1 billion population is not just witnessing an increase in its income but also in consumption and production The interim Budgets focus on extending the National Rural Employment Guarantee Act (NREGA) to all states with a US$ 583 billion outlay for 2009-10 would benefit the rural economy The rural economy got a further boost with the farmer loan waiver of US$ 1386 billion and the ambitious Bharat Nirman Programme with an outlay of US$ 3484 billion for improving rural infrastructure Additionally the rural economy has not been impacted by the global economic slowdown according to a recent study by the Rural Marketing Association of India (RMAI) The study found that the rural and small town economy which accounts for 60 per cent of Indiarsquos income has remained insulated from the economic slowdown Moreover rural incomes are on the rise driven largely due to continuous growth in agriculture for four consecutive years According to a McKinsey survey conducted in 2007 the rural India market would grow almost four times from its existing size in 2007 which was estimated at US$ 577 billion Furthermore high-end brands like Tommy Hilfiger are also bullish on small towns Small towns currently contribute around 20 per cent of the brandrsquos sales This could go up to one-third in two yearsrsquo time
lsquoRuralrsquo ndash 75 population engaged in agriculture related activity According to industry estimates 70 of population engaged in agricultural
activity1048699 700 million people (Aug 2002)1048699 13rd of countryrsquos GNP1048699 450 districts 630000 villages approx
Rural India is also characterized by growing affluenceagricultural output increasingly to early 215 millions tones in 2004 compared to 176 millions in 1991
Key to success in Rural India
0
Physical Distribution Channel Management Promotion and Marketing Communication
Rural Marketing Key Strategy
Three As
Availability Capacity expansion ndash 25 prod lines and doubled bottle capacity Unique and different distribution strategy ndash hub amp spoke
distribution Coverage of 158342 villages by Aug 2003 (81383 in 2001) 200000 refrigerators to rural retailers
Affordability Introduction of 200ml bottle Priced at Rs 7 closed the gap
between Coke and basic refreshments
Acceptability Mass media marketing Launched TVCs targeted at rural consumers
0
0
LITERATURE REVIEW
1-A study of factors responsible for brand preference in fmcg sectorrdquo The purpose of this paper is the study of factors responsible for brand preference in fmcg products increasing competition more due to globalization is motivating many companies to base their strategies almost entirely on building brands Brand preference means to compare the different brands and opt for the most preferred brand This brand preference is influenced by various factorsAccording to this study many factors were find out for preferring a brand likeBrand persona Brand constancyBrand loftinessBrand valueIn the identification of factors affecting the brand preference it was concluded that brand persona is the most effective factor that affects the brand preference This brand persona deals with the personality aspects or the external attributes of brand thus it can be said that consumer prefer any brand by looking at the external attributes of a brand
-journal of ims vol 5 no1 jan-june 2008
2-Colour and flavour rule consumer preferences Study
The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse ldquoCompanies need to continuously innovate to maintain market leadershiprdquo wrote the researchers ldquoWhen the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumersrdquo ldquoThis experiment
0
showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approachesrdquo The study also demonstrates the importance of flavour and colour selection for new products
The global flavours market was been valued at some US$18bn in 2006 (Business Insights) Meanwhile the value of the international colourings market was estimated at around $115bn in 2007 (euro731m) up 25 per cent from $107bn (680m) in 2004 according to Leatherhead Food International (LFI) Natural colours now make up 31 per cent of the colourings market compared with 40 per cent for synthetics according to LFI
Bombarding the senses
By choosing to formulate a new beverage the researchers noted that the new product would need to be differentiated by improving the sensory characteristics
Four factors were identified for the formulation four colour intensities) three flavourings two label types (soft versus hard) and two pack sizes (standard versus oversize) By using both quantitative (hedonic testing) and qualitative (focus groups) approaches the researchers found that ldquothe main factors which drive consumer preference for this concept are colour intensity and flavouringrdquo Indeed colour intensity accounted for 43 per cent and flavour 32 per cent of the consumersrsquo overall liking ldquoPack size and label type are taken into account by the consumer to a lesser extendrdquo they added ldquoThis methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumersrsquo expectation it has now to be reproduced as every brand concept and product is a unique combination designed for a specific consumer grouprdquo concluded the researchers
Source Food Quality and PreferenceVolume 19 Issue 8 Pages 719-726By Stephen Daniells 07-Oct-2008
0
3- Taste or health A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits Data were analyzed 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 saltiness drinks flavor and greasiness These variables emerged as the first factor in the analysis suggesting 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 respondents attitudes toward fat in the diet Factor 3 comprised two remaining sensory attributes (color 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
Source-Beverly J Tepper and Amy C Trail Journal of Food Science and Technology 15 September 1998
Rural Consumer BehaviorConsumer Buyer Behavior refers to the buying behavior of final consumers ndash individuals and households who buy goods and services for personal consumption All of these final consumers combined make up the consumer market The consumer market in this case is Rural India About 70 of Indias population lives in rural areas There are more than 600000 villages in the country as against about 300 cities and 4600 towns Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use Villagers react differently to different products colors sizes etc in different parts of India Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India Thus it is important to study the thought process that goes into making a purchase decision so that marketers can reach this huge untapped segment
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
Words of Ministry of Food Processing
Industry for Soft Drink Industry
The 50-bn-rupee soft drink industry is growing now at 6 to 7 annually In India
Coke and Pepsi have a combined market share of around 95 directly or through
franchisees Campa Cola has a 1 share and the rest is divided among local
players Industry watchers say fake products also account for a good share of the
balance There are about 110 soft drink producing units (60 being owned by
Indian bottlers) in the country employing about 125000 people There are two
distinct segments of the market cola and non-cola drinks The cola segment claims
a share of 62 while the non-cola segment includes soda clear lime cloudy lime
and drinks with orange and mango flavors
The per capita consumption of soft drinks in India is around 5 to 6 bottles (same as
Nepals) compared to Pakistans 17 bottles Sri Lankas 21 Thailands 73 the
Philippines 173 and Mexico 605 The industry contributes over Rs 12 bn to the
exchequer and exports goods worth Rs 2 bn It also supports growth of industries
like glass refrigeration transportation paper and sugar The Department of Food
Processing Industries had stipulated that contains-no-fruit-juice labels be pasted
on returnable glass bottles About 85 of the soft drinks are currently sold in
returnable bottles There was a floating stock of about 1000 mn bottles valued at
Rs 6 bn If the industry were to abide by the new guidelines it would have to
invest in new bottles resulting in a cost outgo of Rs 5 bn Neither Coke nor Pepsi
is in a position to invest such a large amount
0
Around 400000 tonnes of raw material would be required to replace the existing
stock of bottles Instead the soft drink industry suggested that a seven-year
moratorium be extended to the industry so that it can incorporate the change in a
phased manner There is no such mandatory requirement anywhere in the world to
specifically label the glass surface of returnable bottles The government has
decided to extend the date for replacing the bottles to end-march 2006 In the
meantime the producers have shifted substantially to the use of PET bottles
Soft and aerated drinks were considered products for the middle class and the
affluent That segregation is no more valid Soft and aerated drinks are consumed
by all except those who cannot afford to buy any drink An NCAER study says
that 91 soft drink sales are made to the lower middle and upper middle classes
The soft drink industry has been urging the government to categorize aerated
waters (soft drinks) equitably with other consumer products of mass consumption
and remove special excise duty
The industry estimates that the beverage market should grow at twice the rate of
GDP growth The Indian market should have therefore grown by at least 12
However it has been growing at a rate of about 6 In contrast the Chinese
market grew by 16 a year while the Russian market expanded at almost four
times the rate of growth of the Indian market
It may be recalled that Coca-Cola the worlds number one player was present in
India for a long time in collaboration with an Indian producer but was thrown out
in the late 1970s It reappeared in India following the economic liberalization era
- but after its rival worlds number two had already entered in a big way following
a long and tough fight against the opposition from the domestic producers When
Coca-Cola re-entered it installed a new milestone It acquired the well flourishing
0
Indias top player Parle Since then it is basically a fight between the two
American giants Others are playing a peripheral role as adjuncts to the two
MNCs Worlds third biggest player Cadbury Schweppes had also made an
entry but was gobbled up by Coca-Cola When Coca-Cola acquired Parle brands it
was in fact buying the bottling facilities the marketing network and the
established consumer preference during the market build-up The brands were a
drag on the global brand Since Coca-Cola was not interested in brands (like
Thumps Up) it did not promote them The result at least in the short run was a
loss of the market to the competitor Coca-Cola decided to market more effectively
the Parle brands It had in its armoury Coke Thumps Up Limca and Fanta The
latest to enter market was Parlersquos erstwhile Rimzim alongside Portello a black
currant flavoured drink very popular in Srilanka
Coca-Cola operates through 35 plants and 16 franchisees throughout the country
while PepsiCo has 20 plants but it has 7 more franchisees at 23 to 16 of its rival
Coca-Cola claims a market share of 51 while Pepsi has a share of 46 The
claims however remain disputed The other smaller players like Pure Drinks Ltd
claim the rest of the market The shares of the two lead players are consolidated
figures which include the respective bottlers Coca-Cola had approached the
government for a five year extension for divesting 49 equity in its bottling
subsidiary Hindustan Coca-Cola Holdings It had set up the marketing subsidiary
as part of its strategy to integrate all its bottling operations both company-
owned and franchisee bottlers apparently keeping in line with its global policy
All together it had bought initially over 38 franchisee bottlers
Kandhari Beverages coke bottlers for north have been eyeing to lift a stake in
Coca-Cola India Coca-Cola had filed an application to offload 49 stake of its
0
bottling operations in favour of their Indian operators Besides Kandhari three
other bottlers one each from Uttar Pradesh Gujarat and Jammu were lined up to
invest in Hindustan Coca-Cola Holding Kandhari has already invested Rs 300 mn
in 1999 and 2000 to upgrade its capacity The total investment by all the four
was expected to be Rs 1000 mn Both Coca-Cola and PepsiCo planned for the
launch of lemon-flavored versions of their products Both have been expanding
their non-carbonated drink line-ups as consumers seem to be shifting away from
carbonated soft drinks PepsiCo is deliberating whether to come out with Pepsi
Twist a cola mixed with lemon But while both companies have juice sports
drinks bottled water and other such drinks in their line-ups neither coke nor Pepsi
has launched a new national variety of a cola-flavoured carbonated soft drink in
years
PepsiCo had achieved Rs 3 bn worth of exports which include processed foods
basmati rice guar gum and soft drinks concentrate PepsiCo completed the second
phase of its expansion and with this expansion PepsiCo was to explore the
possibility of expanding the export of concentrates to more countries in addition to
the exports to Russia and other South Asian countries
Pepsi India has entered into a marketing tie up with Hindustan Lever to promote
sales of soft drinks through Pepsi-HLL network of vending machines and
fountains The major soft drink brand in the Pepsi stable are Pepsi 7UP Mirinda
Tropicana and Acquafina
As a major strategic departure both MNCs were expanding their brand range
Consequent to some diversifying moves at present the sales ratio of Coca-Cola
between soft drinks and other beverages is 955 The company intended to change
this to 8020 in the next three years Its juice brand Maaza - acquired from Parle a
0
few years ago - is being given a major thrust It has plans to go in for canned
coffee iced tea and purified categories under expansion schemes It has already
launched its bottled water brand Kinley in the Indian market Besides it is
intending to acquire domestic brands in the non-carbonated beverages segment
The global deal between Coca-Cola and PampG to form a snacks and beverages joint
venture company was reported to have slipped into rough weather The
PampG brand of potato wafer Pringles seemed to be faced with distribution
problems in India PampG had globally tied up with Coca-Cola to form a stand-alone
juice and snacks company The new firm is focused on developing and marketing
new juices juice based beverages and snacks on a global basis The Sharjah-based
Allied Beverages was pushing its Ahlan brand in India having entered the market
in mid-2000 Its target was carbonated drinks market in PET bottles Its plans
were to launch a PET bottle in the popular 300 ml category Ahlan expected to
gain a 12 share of the total PET bottle market in northern India Of the total
market PET bottle segment is approximately 12 Presently Allied Beverages
has a manufacturing unit at Dharuhera in Haryana The product range includes
carbonated drinks - cola orange lemon and soda in three pack sizes - 500 ml
1500 ml and 2000 ml Allied Beverages sells non-carbonated drinks in 200 ml
foodgrade cups priced at Rs 7 in its portfolio available in four different flavors
The companys future plans include pulp-based fruit drinks in flavors which will
be available in 200 ml non-returnable glass bottles
IFB Agro Industries has handed over the distribution rights of Cadbury Schweppes
in favour of Coco-Cola India following the global takeover of Schweppes
beverages by Coke The company still retains the bottling rights for the beverages
0
It was noticed for the first time during the summer of 2004 that soft drink
companies were registering a slower growth in the sale of bottled water at 20
compared to 35 in case of drinks
Lead Players amp Alliances
Company Share ()
Aradhana 34
Varun Beverages 15
Devyani Beverages 9
Kandhari Beverages 7
Ludhiana Beverages 7
Sri Sarvarya Sugars 6
Pearl Drinks 5
Pearl Beverages 6
0
Leading Brands
Coca Cola Thums Up Limca Fanta Gold Spot Rim Zim Maaza Pepsi Mirinda
7UP Mangola Slice Dukes Lemonada Crush Canada Dry Campa
Market Growth Rates
1990-91 - 1996-97 941996-97 - 2001-02 782001-02 - 2006-07 652004-05 - 2009-10 542009-10 - 2014-15 35 Sensitivity Coefficient 52Market Segmentation
Segment Share ()North 24East 18West 32South 26Rural 30Urban 70
0
Market Structure
Product Variation
Company Share ()Cola Drinks Thums Up 29Coca Cola 25Pepsi 18Non Cola Drinks Gold Spot 2Fanta 9Mirinda 8Limca 9Overall Colas 62Lemon Cloudy 7Clear 3Orange 17Mango 3Soda 8
(wwwmofpinicin)
0
Robust growth continues
The soft drinks industry continued on its path to recovery from the low growth seen between 2005 and 2006 with higher volume growth in 2008 than that seen in 2007 The mature sectors of bottled water fruitvegetable juice and carbonates saw a dynamic year with companies refreshing their productsrsquo brand image and packaging to attract new consumers Emerging product categories such as energy drinks and reconstituted 100 juice saw high double-digit growth rates as companies increased their productsrsquo penetration in India Off-trade volume growth was slightly higher than on-trade volume growth as convenient on-the-go packaging company sponsored chillers in kiranas and attractive supermarket displays fuelled off-trade sales across the market
Companies reposition their brands and update product portfolios
With the industry back on the upward growth curve companies refreshed their brands by introducing new and more premium packaging designs pack sizes and communication campaigns In 2008 bottled water was especially dynamic with all the major national brands following the cue of Bislerirsquos rebranding in late 2007 Carbonates and juice drinks were also reinvigorated with new pack sizes that targeted on-the-go consumption by young adults With ldquonaturally healthyrdquo becoming a key focus for consumers and manufacturers fruitvegetable drinks companies focused their efforts on highlighting their productsrsquo fresh fruit content and health attributes Companies put in motion plans to extend their product portfolios to emerging categories such as 100 juice energy drinks and flavoured water
Indian Product Range
0
Flavour Ingredients Pack Product Company
Cola Cola Flavour carbonated water sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Coke
Thumsup
RC
Pepsi
Coca-Coal
RC cola
Pepsi
Orange Orange Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Fanta
Mirinda
Coca-Cola
Pepsi
Fruit Juice Mango Pulp+ Treated water+ sugar
250 ML Maaza
Minute Maid Pullpy Orange
Slice
Tropicana
Appy Fizz
Real
Coca-Cola
Pepsi
Appy FizzDabur
Cloudy Lemon
Lemon Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Limca
LMN
Mirinda Lemon
Nimbooz
Coca-Cola
Parle agro
Pepsi
Clear Lemon Lemon Flavour+ Carbonated Water + Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Sprite
7rsquoUp
Dew
Coca-Cola
Pepsi
Rural Market Scenario
0
Indian Rural Market
The Indian growth story is now spreading itself to Indias hinterlands Rural India home to about two-thirds of the countryrsquos 1 billion population is not just witnessing an increase in its income but also in consumption and production The interim Budgets focus on extending the National Rural Employment Guarantee Act (NREGA) to all states with a US$ 583 billion outlay for 2009-10 would benefit the rural economy The rural economy got a further boost with the farmer loan waiver of US$ 1386 billion and the ambitious Bharat Nirman Programme with an outlay of US$ 3484 billion for improving rural infrastructure Additionally the rural economy has not been impacted by the global economic slowdown according to a recent study by the Rural Marketing Association of India (RMAI) The study found that the rural and small town economy which accounts for 60 per cent of Indiarsquos income has remained insulated from the economic slowdown Moreover rural incomes are on the rise driven largely due to continuous growth in agriculture for four consecutive years According to a McKinsey survey conducted in 2007 the rural India market would grow almost four times from its existing size in 2007 which was estimated at US$ 577 billion Furthermore high-end brands like Tommy Hilfiger are also bullish on small towns Small towns currently contribute around 20 per cent of the brandrsquos sales This could go up to one-third in two yearsrsquo time
lsquoRuralrsquo ndash 75 population engaged in agriculture related activity According to industry estimates 70 of population engaged in agricultural
activity1048699 700 million people (Aug 2002)1048699 13rd of countryrsquos GNP1048699 450 districts 630000 villages approx
Rural India is also characterized by growing affluenceagricultural output increasingly to early 215 millions tones in 2004 compared to 176 millions in 1991
Key to success in Rural India
0
Physical Distribution Channel Management Promotion and Marketing Communication
Rural Marketing Key Strategy
Three As
Availability Capacity expansion ndash 25 prod lines and doubled bottle capacity Unique and different distribution strategy ndash hub amp spoke
distribution Coverage of 158342 villages by Aug 2003 (81383 in 2001) 200000 refrigerators to rural retailers
Affordability Introduction of 200ml bottle Priced at Rs 7 closed the gap
between Coke and basic refreshments
Acceptability Mass media marketing Launched TVCs targeted at rural consumers
0
0
LITERATURE REVIEW
1-A study of factors responsible for brand preference in fmcg sectorrdquo The purpose of this paper is the study of factors responsible for brand preference in fmcg products increasing competition more due to globalization is motivating many companies to base their strategies almost entirely on building brands Brand preference means to compare the different brands and opt for the most preferred brand This brand preference is influenced by various factorsAccording to this study many factors were find out for preferring a brand likeBrand persona Brand constancyBrand loftinessBrand valueIn the identification of factors affecting the brand preference it was concluded that brand persona is the most effective factor that affects the brand preference This brand persona deals with the personality aspects or the external attributes of brand thus it can be said that consumer prefer any brand by looking at the external attributes of a brand
-journal of ims vol 5 no1 jan-june 2008
2-Colour and flavour rule consumer preferences Study
The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse ldquoCompanies need to continuously innovate to maintain market leadershiprdquo wrote the researchers ldquoWhen the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumersrdquo ldquoThis experiment
0
showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approachesrdquo The study also demonstrates the importance of flavour and colour selection for new products
The global flavours market was been valued at some US$18bn in 2006 (Business Insights) Meanwhile the value of the international colourings market was estimated at around $115bn in 2007 (euro731m) up 25 per cent from $107bn (680m) in 2004 according to Leatherhead Food International (LFI) Natural colours now make up 31 per cent of the colourings market compared with 40 per cent for synthetics according to LFI
Bombarding the senses
By choosing to formulate a new beverage the researchers noted that the new product would need to be differentiated by improving the sensory characteristics
Four factors were identified for the formulation four colour intensities) three flavourings two label types (soft versus hard) and two pack sizes (standard versus oversize) By using both quantitative (hedonic testing) and qualitative (focus groups) approaches the researchers found that ldquothe main factors which drive consumer preference for this concept are colour intensity and flavouringrdquo Indeed colour intensity accounted for 43 per cent and flavour 32 per cent of the consumersrsquo overall liking ldquoPack size and label type are taken into account by the consumer to a lesser extendrdquo they added ldquoThis methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumersrsquo expectation it has now to be reproduced as every brand concept and product is a unique combination designed for a specific consumer grouprdquo concluded the researchers
Source Food Quality and PreferenceVolume 19 Issue 8 Pages 719-726By Stephen Daniells 07-Oct-2008
0
3- Taste or health A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits Data were analyzed 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 saltiness drinks flavor and greasiness These variables emerged as the first factor in the analysis suggesting 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 respondents attitudes toward fat in the diet Factor 3 comprised two remaining sensory attributes (color 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
Source-Beverly J Tepper and Amy C Trail Journal of Food Science and Technology 15 September 1998
Rural Consumer BehaviorConsumer Buyer Behavior refers to the buying behavior of final consumers ndash individuals and households who buy goods and services for personal consumption All of these final consumers combined make up the consumer market The consumer market in this case is Rural India About 70 of Indias population lives in rural areas There are more than 600000 villages in the country as against about 300 cities and 4600 towns Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use Villagers react differently to different products colors sizes etc in different parts of India Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India Thus it is important to study the thought process that goes into making a purchase decision so that marketers can reach this huge untapped segment
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
Around 400000 tonnes of raw material would be required to replace the existing
stock of bottles Instead the soft drink industry suggested that a seven-year
moratorium be extended to the industry so that it can incorporate the change in a
phased manner There is no such mandatory requirement anywhere in the world to
specifically label the glass surface of returnable bottles The government has
decided to extend the date for replacing the bottles to end-march 2006 In the
meantime the producers have shifted substantially to the use of PET bottles
Soft and aerated drinks were considered products for the middle class and the
affluent That segregation is no more valid Soft and aerated drinks are consumed
by all except those who cannot afford to buy any drink An NCAER study says
that 91 soft drink sales are made to the lower middle and upper middle classes
The soft drink industry has been urging the government to categorize aerated
waters (soft drinks) equitably with other consumer products of mass consumption
and remove special excise duty
The industry estimates that the beverage market should grow at twice the rate of
GDP growth The Indian market should have therefore grown by at least 12
However it has been growing at a rate of about 6 In contrast the Chinese
market grew by 16 a year while the Russian market expanded at almost four
times the rate of growth of the Indian market
It may be recalled that Coca-Cola the worlds number one player was present in
India for a long time in collaboration with an Indian producer but was thrown out
in the late 1970s It reappeared in India following the economic liberalization era
- but after its rival worlds number two had already entered in a big way following
a long and tough fight against the opposition from the domestic producers When
Coca-Cola re-entered it installed a new milestone It acquired the well flourishing
0
Indias top player Parle Since then it is basically a fight between the two
American giants Others are playing a peripheral role as adjuncts to the two
MNCs Worlds third biggest player Cadbury Schweppes had also made an
entry but was gobbled up by Coca-Cola When Coca-Cola acquired Parle brands it
was in fact buying the bottling facilities the marketing network and the
established consumer preference during the market build-up The brands were a
drag on the global brand Since Coca-Cola was not interested in brands (like
Thumps Up) it did not promote them The result at least in the short run was a
loss of the market to the competitor Coca-Cola decided to market more effectively
the Parle brands It had in its armoury Coke Thumps Up Limca and Fanta The
latest to enter market was Parlersquos erstwhile Rimzim alongside Portello a black
currant flavoured drink very popular in Srilanka
Coca-Cola operates through 35 plants and 16 franchisees throughout the country
while PepsiCo has 20 plants but it has 7 more franchisees at 23 to 16 of its rival
Coca-Cola claims a market share of 51 while Pepsi has a share of 46 The
claims however remain disputed The other smaller players like Pure Drinks Ltd
claim the rest of the market The shares of the two lead players are consolidated
figures which include the respective bottlers Coca-Cola had approached the
government for a five year extension for divesting 49 equity in its bottling
subsidiary Hindustan Coca-Cola Holdings It had set up the marketing subsidiary
as part of its strategy to integrate all its bottling operations both company-
owned and franchisee bottlers apparently keeping in line with its global policy
All together it had bought initially over 38 franchisee bottlers
Kandhari Beverages coke bottlers for north have been eyeing to lift a stake in
Coca-Cola India Coca-Cola had filed an application to offload 49 stake of its
0
bottling operations in favour of their Indian operators Besides Kandhari three
other bottlers one each from Uttar Pradesh Gujarat and Jammu were lined up to
invest in Hindustan Coca-Cola Holding Kandhari has already invested Rs 300 mn
in 1999 and 2000 to upgrade its capacity The total investment by all the four
was expected to be Rs 1000 mn Both Coca-Cola and PepsiCo planned for the
launch of lemon-flavored versions of their products Both have been expanding
their non-carbonated drink line-ups as consumers seem to be shifting away from
carbonated soft drinks PepsiCo is deliberating whether to come out with Pepsi
Twist a cola mixed with lemon But while both companies have juice sports
drinks bottled water and other such drinks in their line-ups neither coke nor Pepsi
has launched a new national variety of a cola-flavoured carbonated soft drink in
years
PepsiCo had achieved Rs 3 bn worth of exports which include processed foods
basmati rice guar gum and soft drinks concentrate PepsiCo completed the second
phase of its expansion and with this expansion PepsiCo was to explore the
possibility of expanding the export of concentrates to more countries in addition to
the exports to Russia and other South Asian countries
Pepsi India has entered into a marketing tie up with Hindustan Lever to promote
sales of soft drinks through Pepsi-HLL network of vending machines and
fountains The major soft drink brand in the Pepsi stable are Pepsi 7UP Mirinda
Tropicana and Acquafina
As a major strategic departure both MNCs were expanding their brand range
Consequent to some diversifying moves at present the sales ratio of Coca-Cola
between soft drinks and other beverages is 955 The company intended to change
this to 8020 in the next three years Its juice brand Maaza - acquired from Parle a
0
few years ago - is being given a major thrust It has plans to go in for canned
coffee iced tea and purified categories under expansion schemes It has already
launched its bottled water brand Kinley in the Indian market Besides it is
intending to acquire domestic brands in the non-carbonated beverages segment
The global deal between Coca-Cola and PampG to form a snacks and beverages joint
venture company was reported to have slipped into rough weather The
PampG brand of potato wafer Pringles seemed to be faced with distribution
problems in India PampG had globally tied up with Coca-Cola to form a stand-alone
juice and snacks company The new firm is focused on developing and marketing
new juices juice based beverages and snacks on a global basis The Sharjah-based
Allied Beverages was pushing its Ahlan brand in India having entered the market
in mid-2000 Its target was carbonated drinks market in PET bottles Its plans
were to launch a PET bottle in the popular 300 ml category Ahlan expected to
gain a 12 share of the total PET bottle market in northern India Of the total
market PET bottle segment is approximately 12 Presently Allied Beverages
has a manufacturing unit at Dharuhera in Haryana The product range includes
carbonated drinks - cola orange lemon and soda in three pack sizes - 500 ml
1500 ml and 2000 ml Allied Beverages sells non-carbonated drinks in 200 ml
foodgrade cups priced at Rs 7 in its portfolio available in four different flavors
The companys future plans include pulp-based fruit drinks in flavors which will
be available in 200 ml non-returnable glass bottles
IFB Agro Industries has handed over the distribution rights of Cadbury Schweppes
in favour of Coco-Cola India following the global takeover of Schweppes
beverages by Coke The company still retains the bottling rights for the beverages
0
It was noticed for the first time during the summer of 2004 that soft drink
companies were registering a slower growth in the sale of bottled water at 20
compared to 35 in case of drinks
Lead Players amp Alliances
Company Share ()
Aradhana 34
Varun Beverages 15
Devyani Beverages 9
Kandhari Beverages 7
Ludhiana Beverages 7
Sri Sarvarya Sugars 6
Pearl Drinks 5
Pearl Beverages 6
0
Leading Brands
Coca Cola Thums Up Limca Fanta Gold Spot Rim Zim Maaza Pepsi Mirinda
7UP Mangola Slice Dukes Lemonada Crush Canada Dry Campa
Market Growth Rates
1990-91 - 1996-97 941996-97 - 2001-02 782001-02 - 2006-07 652004-05 - 2009-10 542009-10 - 2014-15 35 Sensitivity Coefficient 52Market Segmentation
Segment Share ()North 24East 18West 32South 26Rural 30Urban 70
0
Market Structure
Product Variation
Company Share ()Cola Drinks Thums Up 29Coca Cola 25Pepsi 18Non Cola Drinks Gold Spot 2Fanta 9Mirinda 8Limca 9Overall Colas 62Lemon Cloudy 7Clear 3Orange 17Mango 3Soda 8
(wwwmofpinicin)
0
Robust growth continues
The soft drinks industry continued on its path to recovery from the low growth seen between 2005 and 2006 with higher volume growth in 2008 than that seen in 2007 The mature sectors of bottled water fruitvegetable juice and carbonates saw a dynamic year with companies refreshing their productsrsquo brand image and packaging to attract new consumers Emerging product categories such as energy drinks and reconstituted 100 juice saw high double-digit growth rates as companies increased their productsrsquo penetration in India Off-trade volume growth was slightly higher than on-trade volume growth as convenient on-the-go packaging company sponsored chillers in kiranas and attractive supermarket displays fuelled off-trade sales across the market
Companies reposition their brands and update product portfolios
With the industry back on the upward growth curve companies refreshed their brands by introducing new and more premium packaging designs pack sizes and communication campaigns In 2008 bottled water was especially dynamic with all the major national brands following the cue of Bislerirsquos rebranding in late 2007 Carbonates and juice drinks were also reinvigorated with new pack sizes that targeted on-the-go consumption by young adults With ldquonaturally healthyrdquo becoming a key focus for consumers and manufacturers fruitvegetable drinks companies focused their efforts on highlighting their productsrsquo fresh fruit content and health attributes Companies put in motion plans to extend their product portfolios to emerging categories such as 100 juice energy drinks and flavoured water
Indian Product Range
0
Flavour Ingredients Pack Product Company
Cola Cola Flavour carbonated water sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Coke
Thumsup
RC
Pepsi
Coca-Coal
RC cola
Pepsi
Orange Orange Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Fanta
Mirinda
Coca-Cola
Pepsi
Fruit Juice Mango Pulp+ Treated water+ sugar
250 ML Maaza
Minute Maid Pullpy Orange
Slice
Tropicana
Appy Fizz
Real
Coca-Cola
Pepsi
Appy FizzDabur
Cloudy Lemon
Lemon Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Limca
LMN
Mirinda Lemon
Nimbooz
Coca-Cola
Parle agro
Pepsi
Clear Lemon Lemon Flavour+ Carbonated Water + Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Sprite
7rsquoUp
Dew
Coca-Cola
Pepsi
Rural Market Scenario
0
Indian Rural Market
The Indian growth story is now spreading itself to Indias hinterlands Rural India home to about two-thirds of the countryrsquos 1 billion population is not just witnessing an increase in its income but also in consumption and production The interim Budgets focus on extending the National Rural Employment Guarantee Act (NREGA) to all states with a US$ 583 billion outlay for 2009-10 would benefit the rural economy The rural economy got a further boost with the farmer loan waiver of US$ 1386 billion and the ambitious Bharat Nirman Programme with an outlay of US$ 3484 billion for improving rural infrastructure Additionally the rural economy has not been impacted by the global economic slowdown according to a recent study by the Rural Marketing Association of India (RMAI) The study found that the rural and small town economy which accounts for 60 per cent of Indiarsquos income has remained insulated from the economic slowdown Moreover rural incomes are on the rise driven largely due to continuous growth in agriculture for four consecutive years According to a McKinsey survey conducted in 2007 the rural India market would grow almost four times from its existing size in 2007 which was estimated at US$ 577 billion Furthermore high-end brands like Tommy Hilfiger are also bullish on small towns Small towns currently contribute around 20 per cent of the brandrsquos sales This could go up to one-third in two yearsrsquo time
lsquoRuralrsquo ndash 75 population engaged in agriculture related activity According to industry estimates 70 of population engaged in agricultural
activity1048699 700 million people (Aug 2002)1048699 13rd of countryrsquos GNP1048699 450 districts 630000 villages approx
Rural India is also characterized by growing affluenceagricultural output increasingly to early 215 millions tones in 2004 compared to 176 millions in 1991
Key to success in Rural India
0
Physical Distribution Channel Management Promotion and Marketing Communication
Rural Marketing Key Strategy
Three As
Availability Capacity expansion ndash 25 prod lines and doubled bottle capacity Unique and different distribution strategy ndash hub amp spoke
distribution Coverage of 158342 villages by Aug 2003 (81383 in 2001) 200000 refrigerators to rural retailers
Affordability Introduction of 200ml bottle Priced at Rs 7 closed the gap
between Coke and basic refreshments
Acceptability Mass media marketing Launched TVCs targeted at rural consumers
0
0
LITERATURE REVIEW
1-A study of factors responsible for brand preference in fmcg sectorrdquo The purpose of this paper is the study of factors responsible for brand preference in fmcg products increasing competition more due to globalization is motivating many companies to base their strategies almost entirely on building brands Brand preference means to compare the different brands and opt for the most preferred brand This brand preference is influenced by various factorsAccording to this study many factors were find out for preferring a brand likeBrand persona Brand constancyBrand loftinessBrand valueIn the identification of factors affecting the brand preference it was concluded that brand persona is the most effective factor that affects the brand preference This brand persona deals with the personality aspects or the external attributes of brand thus it can be said that consumer prefer any brand by looking at the external attributes of a brand
-journal of ims vol 5 no1 jan-june 2008
2-Colour and flavour rule consumer preferences Study
The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse ldquoCompanies need to continuously innovate to maintain market leadershiprdquo wrote the researchers ldquoWhen the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumersrdquo ldquoThis experiment
0
showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approachesrdquo The study also demonstrates the importance of flavour and colour selection for new products
The global flavours market was been valued at some US$18bn in 2006 (Business Insights) Meanwhile the value of the international colourings market was estimated at around $115bn in 2007 (euro731m) up 25 per cent from $107bn (680m) in 2004 according to Leatherhead Food International (LFI) Natural colours now make up 31 per cent of the colourings market compared with 40 per cent for synthetics according to LFI
Bombarding the senses
By choosing to formulate a new beverage the researchers noted that the new product would need to be differentiated by improving the sensory characteristics
Four factors were identified for the formulation four colour intensities) three flavourings two label types (soft versus hard) and two pack sizes (standard versus oversize) By using both quantitative (hedonic testing) and qualitative (focus groups) approaches the researchers found that ldquothe main factors which drive consumer preference for this concept are colour intensity and flavouringrdquo Indeed colour intensity accounted for 43 per cent and flavour 32 per cent of the consumersrsquo overall liking ldquoPack size and label type are taken into account by the consumer to a lesser extendrdquo they added ldquoThis methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumersrsquo expectation it has now to be reproduced as every brand concept and product is a unique combination designed for a specific consumer grouprdquo concluded the researchers
Source Food Quality and PreferenceVolume 19 Issue 8 Pages 719-726By Stephen Daniells 07-Oct-2008
0
3- Taste or health A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits Data were analyzed 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 saltiness drinks flavor and greasiness These variables emerged as the first factor in the analysis suggesting 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 respondents attitudes toward fat in the diet Factor 3 comprised two remaining sensory attributes (color 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
Source-Beverly J Tepper and Amy C Trail Journal of Food Science and Technology 15 September 1998
Rural Consumer BehaviorConsumer Buyer Behavior refers to the buying behavior of final consumers ndash individuals and households who buy goods and services for personal consumption All of these final consumers combined make up the consumer market The consumer market in this case is Rural India About 70 of Indias population lives in rural areas There are more than 600000 villages in the country as against about 300 cities and 4600 towns Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use Villagers react differently to different products colors sizes etc in different parts of India Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India Thus it is important to study the thought process that goes into making a purchase decision so that marketers can reach this huge untapped segment
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
Indias top player Parle Since then it is basically a fight between the two
American giants Others are playing a peripheral role as adjuncts to the two
MNCs Worlds third biggest player Cadbury Schweppes had also made an
entry but was gobbled up by Coca-Cola When Coca-Cola acquired Parle brands it
was in fact buying the bottling facilities the marketing network and the
established consumer preference during the market build-up The brands were a
drag on the global brand Since Coca-Cola was not interested in brands (like
Thumps Up) it did not promote them The result at least in the short run was a
loss of the market to the competitor Coca-Cola decided to market more effectively
the Parle brands It had in its armoury Coke Thumps Up Limca and Fanta The
latest to enter market was Parlersquos erstwhile Rimzim alongside Portello a black
currant flavoured drink very popular in Srilanka
Coca-Cola operates through 35 plants and 16 franchisees throughout the country
while PepsiCo has 20 plants but it has 7 more franchisees at 23 to 16 of its rival
Coca-Cola claims a market share of 51 while Pepsi has a share of 46 The
claims however remain disputed The other smaller players like Pure Drinks Ltd
claim the rest of the market The shares of the two lead players are consolidated
figures which include the respective bottlers Coca-Cola had approached the
government for a five year extension for divesting 49 equity in its bottling
subsidiary Hindustan Coca-Cola Holdings It had set up the marketing subsidiary
as part of its strategy to integrate all its bottling operations both company-
owned and franchisee bottlers apparently keeping in line with its global policy
All together it had bought initially over 38 franchisee bottlers
Kandhari Beverages coke bottlers for north have been eyeing to lift a stake in
Coca-Cola India Coca-Cola had filed an application to offload 49 stake of its
0
bottling operations in favour of their Indian operators Besides Kandhari three
other bottlers one each from Uttar Pradesh Gujarat and Jammu were lined up to
invest in Hindustan Coca-Cola Holding Kandhari has already invested Rs 300 mn
in 1999 and 2000 to upgrade its capacity The total investment by all the four
was expected to be Rs 1000 mn Both Coca-Cola and PepsiCo planned for the
launch of lemon-flavored versions of their products Both have been expanding
their non-carbonated drink line-ups as consumers seem to be shifting away from
carbonated soft drinks PepsiCo is deliberating whether to come out with Pepsi
Twist a cola mixed with lemon But while both companies have juice sports
drinks bottled water and other such drinks in their line-ups neither coke nor Pepsi
has launched a new national variety of a cola-flavoured carbonated soft drink in
years
PepsiCo had achieved Rs 3 bn worth of exports which include processed foods
basmati rice guar gum and soft drinks concentrate PepsiCo completed the second
phase of its expansion and with this expansion PepsiCo was to explore the
possibility of expanding the export of concentrates to more countries in addition to
the exports to Russia and other South Asian countries
Pepsi India has entered into a marketing tie up with Hindustan Lever to promote
sales of soft drinks through Pepsi-HLL network of vending machines and
fountains The major soft drink brand in the Pepsi stable are Pepsi 7UP Mirinda
Tropicana and Acquafina
As a major strategic departure both MNCs were expanding their brand range
Consequent to some diversifying moves at present the sales ratio of Coca-Cola
between soft drinks and other beverages is 955 The company intended to change
this to 8020 in the next three years Its juice brand Maaza - acquired from Parle a
0
few years ago - is being given a major thrust It has plans to go in for canned
coffee iced tea and purified categories under expansion schemes It has already
launched its bottled water brand Kinley in the Indian market Besides it is
intending to acquire domestic brands in the non-carbonated beverages segment
The global deal between Coca-Cola and PampG to form a snacks and beverages joint
venture company was reported to have slipped into rough weather The
PampG brand of potato wafer Pringles seemed to be faced with distribution
problems in India PampG had globally tied up with Coca-Cola to form a stand-alone
juice and snacks company The new firm is focused on developing and marketing
new juices juice based beverages and snacks on a global basis The Sharjah-based
Allied Beverages was pushing its Ahlan brand in India having entered the market
in mid-2000 Its target was carbonated drinks market in PET bottles Its plans
were to launch a PET bottle in the popular 300 ml category Ahlan expected to
gain a 12 share of the total PET bottle market in northern India Of the total
market PET bottle segment is approximately 12 Presently Allied Beverages
has a manufacturing unit at Dharuhera in Haryana The product range includes
carbonated drinks - cola orange lemon and soda in three pack sizes - 500 ml
1500 ml and 2000 ml Allied Beverages sells non-carbonated drinks in 200 ml
foodgrade cups priced at Rs 7 in its portfolio available in four different flavors
The companys future plans include pulp-based fruit drinks in flavors which will
be available in 200 ml non-returnable glass bottles
IFB Agro Industries has handed over the distribution rights of Cadbury Schweppes
in favour of Coco-Cola India following the global takeover of Schweppes
beverages by Coke The company still retains the bottling rights for the beverages
0
It was noticed for the first time during the summer of 2004 that soft drink
companies were registering a slower growth in the sale of bottled water at 20
compared to 35 in case of drinks
Lead Players amp Alliances
Company Share ()
Aradhana 34
Varun Beverages 15
Devyani Beverages 9
Kandhari Beverages 7
Ludhiana Beverages 7
Sri Sarvarya Sugars 6
Pearl Drinks 5
Pearl Beverages 6
0
Leading Brands
Coca Cola Thums Up Limca Fanta Gold Spot Rim Zim Maaza Pepsi Mirinda
7UP Mangola Slice Dukes Lemonada Crush Canada Dry Campa
Market Growth Rates
1990-91 - 1996-97 941996-97 - 2001-02 782001-02 - 2006-07 652004-05 - 2009-10 542009-10 - 2014-15 35 Sensitivity Coefficient 52Market Segmentation
Segment Share ()North 24East 18West 32South 26Rural 30Urban 70
0
Market Structure
Product Variation
Company Share ()Cola Drinks Thums Up 29Coca Cola 25Pepsi 18Non Cola Drinks Gold Spot 2Fanta 9Mirinda 8Limca 9Overall Colas 62Lemon Cloudy 7Clear 3Orange 17Mango 3Soda 8
(wwwmofpinicin)
0
Robust growth continues
The soft drinks industry continued on its path to recovery from the low growth seen between 2005 and 2006 with higher volume growth in 2008 than that seen in 2007 The mature sectors of bottled water fruitvegetable juice and carbonates saw a dynamic year with companies refreshing their productsrsquo brand image and packaging to attract new consumers Emerging product categories such as energy drinks and reconstituted 100 juice saw high double-digit growth rates as companies increased their productsrsquo penetration in India Off-trade volume growth was slightly higher than on-trade volume growth as convenient on-the-go packaging company sponsored chillers in kiranas and attractive supermarket displays fuelled off-trade sales across the market
Companies reposition their brands and update product portfolios
With the industry back on the upward growth curve companies refreshed their brands by introducing new and more premium packaging designs pack sizes and communication campaigns In 2008 bottled water was especially dynamic with all the major national brands following the cue of Bislerirsquos rebranding in late 2007 Carbonates and juice drinks were also reinvigorated with new pack sizes that targeted on-the-go consumption by young adults With ldquonaturally healthyrdquo becoming a key focus for consumers and manufacturers fruitvegetable drinks companies focused their efforts on highlighting their productsrsquo fresh fruit content and health attributes Companies put in motion plans to extend their product portfolios to emerging categories such as 100 juice energy drinks and flavoured water
Indian Product Range
0
Flavour Ingredients Pack Product Company
Cola Cola Flavour carbonated water sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Coke
Thumsup
RC
Pepsi
Coca-Coal
RC cola
Pepsi
Orange Orange Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Fanta
Mirinda
Coca-Cola
Pepsi
Fruit Juice Mango Pulp+ Treated water+ sugar
250 ML Maaza
Minute Maid Pullpy Orange
Slice
Tropicana
Appy Fizz
Real
Coca-Cola
Pepsi
Appy FizzDabur
Cloudy Lemon
Lemon Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Limca
LMN
Mirinda Lemon
Nimbooz
Coca-Cola
Parle agro
Pepsi
Clear Lemon Lemon Flavour+ Carbonated Water + Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Sprite
7rsquoUp
Dew
Coca-Cola
Pepsi
Rural Market Scenario
0
Indian Rural Market
The Indian growth story is now spreading itself to Indias hinterlands Rural India home to about two-thirds of the countryrsquos 1 billion population is not just witnessing an increase in its income but also in consumption and production The interim Budgets focus on extending the National Rural Employment Guarantee Act (NREGA) to all states with a US$ 583 billion outlay for 2009-10 would benefit the rural economy The rural economy got a further boost with the farmer loan waiver of US$ 1386 billion and the ambitious Bharat Nirman Programme with an outlay of US$ 3484 billion for improving rural infrastructure Additionally the rural economy has not been impacted by the global economic slowdown according to a recent study by the Rural Marketing Association of India (RMAI) The study found that the rural and small town economy which accounts for 60 per cent of Indiarsquos income has remained insulated from the economic slowdown Moreover rural incomes are on the rise driven largely due to continuous growth in agriculture for four consecutive years According to a McKinsey survey conducted in 2007 the rural India market would grow almost four times from its existing size in 2007 which was estimated at US$ 577 billion Furthermore high-end brands like Tommy Hilfiger are also bullish on small towns Small towns currently contribute around 20 per cent of the brandrsquos sales This could go up to one-third in two yearsrsquo time
lsquoRuralrsquo ndash 75 population engaged in agriculture related activity According to industry estimates 70 of population engaged in agricultural
activity1048699 700 million people (Aug 2002)1048699 13rd of countryrsquos GNP1048699 450 districts 630000 villages approx
Rural India is also characterized by growing affluenceagricultural output increasingly to early 215 millions tones in 2004 compared to 176 millions in 1991
Key to success in Rural India
0
Physical Distribution Channel Management Promotion and Marketing Communication
Rural Marketing Key Strategy
Three As
Availability Capacity expansion ndash 25 prod lines and doubled bottle capacity Unique and different distribution strategy ndash hub amp spoke
distribution Coverage of 158342 villages by Aug 2003 (81383 in 2001) 200000 refrigerators to rural retailers
Affordability Introduction of 200ml bottle Priced at Rs 7 closed the gap
between Coke and basic refreshments
Acceptability Mass media marketing Launched TVCs targeted at rural consumers
0
0
LITERATURE REVIEW
1-A study of factors responsible for brand preference in fmcg sectorrdquo The purpose of this paper is the study of factors responsible for brand preference in fmcg products increasing competition more due to globalization is motivating many companies to base their strategies almost entirely on building brands Brand preference means to compare the different brands and opt for the most preferred brand This brand preference is influenced by various factorsAccording to this study many factors were find out for preferring a brand likeBrand persona Brand constancyBrand loftinessBrand valueIn the identification of factors affecting the brand preference it was concluded that brand persona is the most effective factor that affects the brand preference This brand persona deals with the personality aspects or the external attributes of brand thus it can be said that consumer prefer any brand by looking at the external attributes of a brand
-journal of ims vol 5 no1 jan-june 2008
2-Colour and flavour rule consumer preferences Study
The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse ldquoCompanies need to continuously innovate to maintain market leadershiprdquo wrote the researchers ldquoWhen the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumersrdquo ldquoThis experiment
0
showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approachesrdquo The study also demonstrates the importance of flavour and colour selection for new products
The global flavours market was been valued at some US$18bn in 2006 (Business Insights) Meanwhile the value of the international colourings market was estimated at around $115bn in 2007 (euro731m) up 25 per cent from $107bn (680m) in 2004 according to Leatherhead Food International (LFI) Natural colours now make up 31 per cent of the colourings market compared with 40 per cent for synthetics according to LFI
Bombarding the senses
By choosing to formulate a new beverage the researchers noted that the new product would need to be differentiated by improving the sensory characteristics
Four factors were identified for the formulation four colour intensities) three flavourings two label types (soft versus hard) and two pack sizes (standard versus oversize) By using both quantitative (hedonic testing) and qualitative (focus groups) approaches the researchers found that ldquothe main factors which drive consumer preference for this concept are colour intensity and flavouringrdquo Indeed colour intensity accounted for 43 per cent and flavour 32 per cent of the consumersrsquo overall liking ldquoPack size and label type are taken into account by the consumer to a lesser extendrdquo they added ldquoThis methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumersrsquo expectation it has now to be reproduced as every brand concept and product is a unique combination designed for a specific consumer grouprdquo concluded the researchers
Source Food Quality and PreferenceVolume 19 Issue 8 Pages 719-726By Stephen Daniells 07-Oct-2008
0
3- Taste or health A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits Data were analyzed 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 saltiness drinks flavor and greasiness These variables emerged as the first factor in the analysis suggesting 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 respondents attitudes toward fat in the diet Factor 3 comprised two remaining sensory attributes (color 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
Source-Beverly J Tepper and Amy C Trail Journal of Food Science and Technology 15 September 1998
Rural Consumer BehaviorConsumer Buyer Behavior refers to the buying behavior of final consumers ndash individuals and households who buy goods and services for personal consumption All of these final consumers combined make up the consumer market The consumer market in this case is Rural India About 70 of Indias population lives in rural areas There are more than 600000 villages in the country as against about 300 cities and 4600 towns Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use Villagers react differently to different products colors sizes etc in different parts of India Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India Thus it is important to study the thought process that goes into making a purchase decision so that marketers can reach this huge untapped segment
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
bottling operations in favour of their Indian operators Besides Kandhari three
other bottlers one each from Uttar Pradesh Gujarat and Jammu were lined up to
invest in Hindustan Coca-Cola Holding Kandhari has already invested Rs 300 mn
in 1999 and 2000 to upgrade its capacity The total investment by all the four
was expected to be Rs 1000 mn Both Coca-Cola and PepsiCo planned for the
launch of lemon-flavored versions of their products Both have been expanding
their non-carbonated drink line-ups as consumers seem to be shifting away from
carbonated soft drinks PepsiCo is deliberating whether to come out with Pepsi
Twist a cola mixed with lemon But while both companies have juice sports
drinks bottled water and other such drinks in their line-ups neither coke nor Pepsi
has launched a new national variety of a cola-flavoured carbonated soft drink in
years
PepsiCo had achieved Rs 3 bn worth of exports which include processed foods
basmati rice guar gum and soft drinks concentrate PepsiCo completed the second
phase of its expansion and with this expansion PepsiCo was to explore the
possibility of expanding the export of concentrates to more countries in addition to
the exports to Russia and other South Asian countries
Pepsi India has entered into a marketing tie up with Hindustan Lever to promote
sales of soft drinks through Pepsi-HLL network of vending machines and
fountains The major soft drink brand in the Pepsi stable are Pepsi 7UP Mirinda
Tropicana and Acquafina
As a major strategic departure both MNCs were expanding their brand range
Consequent to some diversifying moves at present the sales ratio of Coca-Cola
between soft drinks and other beverages is 955 The company intended to change
this to 8020 in the next three years Its juice brand Maaza - acquired from Parle a
0
few years ago - is being given a major thrust It has plans to go in for canned
coffee iced tea and purified categories under expansion schemes It has already
launched its bottled water brand Kinley in the Indian market Besides it is
intending to acquire domestic brands in the non-carbonated beverages segment
The global deal between Coca-Cola and PampG to form a snacks and beverages joint
venture company was reported to have slipped into rough weather The
PampG brand of potato wafer Pringles seemed to be faced with distribution
problems in India PampG had globally tied up with Coca-Cola to form a stand-alone
juice and snacks company The new firm is focused on developing and marketing
new juices juice based beverages and snacks on a global basis The Sharjah-based
Allied Beverages was pushing its Ahlan brand in India having entered the market
in mid-2000 Its target was carbonated drinks market in PET bottles Its plans
were to launch a PET bottle in the popular 300 ml category Ahlan expected to
gain a 12 share of the total PET bottle market in northern India Of the total
market PET bottle segment is approximately 12 Presently Allied Beverages
has a manufacturing unit at Dharuhera in Haryana The product range includes
carbonated drinks - cola orange lemon and soda in three pack sizes - 500 ml
1500 ml and 2000 ml Allied Beverages sells non-carbonated drinks in 200 ml
foodgrade cups priced at Rs 7 in its portfolio available in four different flavors
The companys future plans include pulp-based fruit drinks in flavors which will
be available in 200 ml non-returnable glass bottles
IFB Agro Industries has handed over the distribution rights of Cadbury Schweppes
in favour of Coco-Cola India following the global takeover of Schweppes
beverages by Coke The company still retains the bottling rights for the beverages
0
It was noticed for the first time during the summer of 2004 that soft drink
companies were registering a slower growth in the sale of bottled water at 20
compared to 35 in case of drinks
Lead Players amp Alliances
Company Share ()
Aradhana 34
Varun Beverages 15
Devyani Beverages 9
Kandhari Beverages 7
Ludhiana Beverages 7
Sri Sarvarya Sugars 6
Pearl Drinks 5
Pearl Beverages 6
0
Leading Brands
Coca Cola Thums Up Limca Fanta Gold Spot Rim Zim Maaza Pepsi Mirinda
7UP Mangola Slice Dukes Lemonada Crush Canada Dry Campa
Market Growth Rates
1990-91 - 1996-97 941996-97 - 2001-02 782001-02 - 2006-07 652004-05 - 2009-10 542009-10 - 2014-15 35 Sensitivity Coefficient 52Market Segmentation
Segment Share ()North 24East 18West 32South 26Rural 30Urban 70
0
Market Structure
Product Variation
Company Share ()Cola Drinks Thums Up 29Coca Cola 25Pepsi 18Non Cola Drinks Gold Spot 2Fanta 9Mirinda 8Limca 9Overall Colas 62Lemon Cloudy 7Clear 3Orange 17Mango 3Soda 8
(wwwmofpinicin)
0
Robust growth continues
The soft drinks industry continued on its path to recovery from the low growth seen between 2005 and 2006 with higher volume growth in 2008 than that seen in 2007 The mature sectors of bottled water fruitvegetable juice and carbonates saw a dynamic year with companies refreshing their productsrsquo brand image and packaging to attract new consumers Emerging product categories such as energy drinks and reconstituted 100 juice saw high double-digit growth rates as companies increased their productsrsquo penetration in India Off-trade volume growth was slightly higher than on-trade volume growth as convenient on-the-go packaging company sponsored chillers in kiranas and attractive supermarket displays fuelled off-trade sales across the market
Companies reposition their brands and update product portfolios
With the industry back on the upward growth curve companies refreshed their brands by introducing new and more premium packaging designs pack sizes and communication campaigns In 2008 bottled water was especially dynamic with all the major national brands following the cue of Bislerirsquos rebranding in late 2007 Carbonates and juice drinks were also reinvigorated with new pack sizes that targeted on-the-go consumption by young adults With ldquonaturally healthyrdquo becoming a key focus for consumers and manufacturers fruitvegetable drinks companies focused their efforts on highlighting their productsrsquo fresh fruit content and health attributes Companies put in motion plans to extend their product portfolios to emerging categories such as 100 juice energy drinks and flavoured water
Indian Product Range
0
Flavour Ingredients Pack Product Company
Cola Cola Flavour carbonated water sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Coke
Thumsup
RC
Pepsi
Coca-Coal
RC cola
Pepsi
Orange Orange Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Fanta
Mirinda
Coca-Cola
Pepsi
Fruit Juice Mango Pulp+ Treated water+ sugar
250 ML Maaza
Minute Maid Pullpy Orange
Slice
Tropicana
Appy Fizz
Real
Coca-Cola
Pepsi
Appy FizzDabur
Cloudy Lemon
Lemon Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Limca
LMN
Mirinda Lemon
Nimbooz
Coca-Cola
Parle agro
Pepsi
Clear Lemon Lemon Flavour+ Carbonated Water + Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Sprite
7rsquoUp
Dew
Coca-Cola
Pepsi
Rural Market Scenario
0
Indian Rural Market
The Indian growth story is now spreading itself to Indias hinterlands Rural India home to about two-thirds of the countryrsquos 1 billion population is not just witnessing an increase in its income but also in consumption and production The interim Budgets focus on extending the National Rural Employment Guarantee Act (NREGA) to all states with a US$ 583 billion outlay for 2009-10 would benefit the rural economy The rural economy got a further boost with the farmer loan waiver of US$ 1386 billion and the ambitious Bharat Nirman Programme with an outlay of US$ 3484 billion for improving rural infrastructure Additionally the rural economy has not been impacted by the global economic slowdown according to a recent study by the Rural Marketing Association of India (RMAI) The study found that the rural and small town economy which accounts for 60 per cent of Indiarsquos income has remained insulated from the economic slowdown Moreover rural incomes are on the rise driven largely due to continuous growth in agriculture for four consecutive years According to a McKinsey survey conducted in 2007 the rural India market would grow almost four times from its existing size in 2007 which was estimated at US$ 577 billion Furthermore high-end brands like Tommy Hilfiger are also bullish on small towns Small towns currently contribute around 20 per cent of the brandrsquos sales This could go up to one-third in two yearsrsquo time
lsquoRuralrsquo ndash 75 population engaged in agriculture related activity According to industry estimates 70 of population engaged in agricultural
activity1048699 700 million people (Aug 2002)1048699 13rd of countryrsquos GNP1048699 450 districts 630000 villages approx
Rural India is also characterized by growing affluenceagricultural output increasingly to early 215 millions tones in 2004 compared to 176 millions in 1991
Key to success in Rural India
0
Physical Distribution Channel Management Promotion and Marketing Communication
Rural Marketing Key Strategy
Three As
Availability Capacity expansion ndash 25 prod lines and doubled bottle capacity Unique and different distribution strategy ndash hub amp spoke
distribution Coverage of 158342 villages by Aug 2003 (81383 in 2001) 200000 refrigerators to rural retailers
Affordability Introduction of 200ml bottle Priced at Rs 7 closed the gap
between Coke and basic refreshments
Acceptability Mass media marketing Launched TVCs targeted at rural consumers
0
0
LITERATURE REVIEW
1-A study of factors responsible for brand preference in fmcg sectorrdquo The purpose of this paper is the study of factors responsible for brand preference in fmcg products increasing competition more due to globalization is motivating many companies to base their strategies almost entirely on building brands Brand preference means to compare the different brands and opt for the most preferred brand This brand preference is influenced by various factorsAccording to this study many factors were find out for preferring a brand likeBrand persona Brand constancyBrand loftinessBrand valueIn the identification of factors affecting the brand preference it was concluded that brand persona is the most effective factor that affects the brand preference This brand persona deals with the personality aspects or the external attributes of brand thus it can be said that consumer prefer any brand by looking at the external attributes of a brand
-journal of ims vol 5 no1 jan-june 2008
2-Colour and flavour rule consumer preferences Study
The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse ldquoCompanies need to continuously innovate to maintain market leadershiprdquo wrote the researchers ldquoWhen the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumersrdquo ldquoThis experiment
0
showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approachesrdquo The study also demonstrates the importance of flavour and colour selection for new products
The global flavours market was been valued at some US$18bn in 2006 (Business Insights) Meanwhile the value of the international colourings market was estimated at around $115bn in 2007 (euro731m) up 25 per cent from $107bn (680m) in 2004 according to Leatherhead Food International (LFI) Natural colours now make up 31 per cent of the colourings market compared with 40 per cent for synthetics according to LFI
Bombarding the senses
By choosing to formulate a new beverage the researchers noted that the new product would need to be differentiated by improving the sensory characteristics
Four factors were identified for the formulation four colour intensities) three flavourings two label types (soft versus hard) and two pack sizes (standard versus oversize) By using both quantitative (hedonic testing) and qualitative (focus groups) approaches the researchers found that ldquothe main factors which drive consumer preference for this concept are colour intensity and flavouringrdquo Indeed colour intensity accounted for 43 per cent and flavour 32 per cent of the consumersrsquo overall liking ldquoPack size and label type are taken into account by the consumer to a lesser extendrdquo they added ldquoThis methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumersrsquo expectation it has now to be reproduced as every brand concept and product is a unique combination designed for a specific consumer grouprdquo concluded the researchers
Source Food Quality and PreferenceVolume 19 Issue 8 Pages 719-726By Stephen Daniells 07-Oct-2008
0
3- Taste or health A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits Data were analyzed 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 saltiness drinks flavor and greasiness These variables emerged as the first factor in the analysis suggesting 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 respondents attitudes toward fat in the diet Factor 3 comprised two remaining sensory attributes (color 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
Source-Beverly J Tepper and Amy C Trail Journal of Food Science and Technology 15 September 1998
Rural Consumer BehaviorConsumer Buyer Behavior refers to the buying behavior of final consumers ndash individuals and households who buy goods and services for personal consumption All of these final consumers combined make up the consumer market The consumer market in this case is Rural India About 70 of Indias population lives in rural areas There are more than 600000 villages in the country as against about 300 cities and 4600 towns Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use Villagers react differently to different products colors sizes etc in different parts of India Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India Thus it is important to study the thought process that goes into making a purchase decision so that marketers can reach this huge untapped segment
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
few years ago - is being given a major thrust It has plans to go in for canned
coffee iced tea and purified categories under expansion schemes It has already
launched its bottled water brand Kinley in the Indian market Besides it is
intending to acquire domestic brands in the non-carbonated beverages segment
The global deal between Coca-Cola and PampG to form a snacks and beverages joint
venture company was reported to have slipped into rough weather The
PampG brand of potato wafer Pringles seemed to be faced with distribution
problems in India PampG had globally tied up with Coca-Cola to form a stand-alone
juice and snacks company The new firm is focused on developing and marketing
new juices juice based beverages and snacks on a global basis The Sharjah-based
Allied Beverages was pushing its Ahlan brand in India having entered the market
in mid-2000 Its target was carbonated drinks market in PET bottles Its plans
were to launch a PET bottle in the popular 300 ml category Ahlan expected to
gain a 12 share of the total PET bottle market in northern India Of the total
market PET bottle segment is approximately 12 Presently Allied Beverages
has a manufacturing unit at Dharuhera in Haryana The product range includes
carbonated drinks - cola orange lemon and soda in three pack sizes - 500 ml
1500 ml and 2000 ml Allied Beverages sells non-carbonated drinks in 200 ml
foodgrade cups priced at Rs 7 in its portfolio available in four different flavors
The companys future plans include pulp-based fruit drinks in flavors which will
be available in 200 ml non-returnable glass bottles
IFB Agro Industries has handed over the distribution rights of Cadbury Schweppes
in favour of Coco-Cola India following the global takeover of Schweppes
beverages by Coke The company still retains the bottling rights for the beverages
0
It was noticed for the first time during the summer of 2004 that soft drink
companies were registering a slower growth in the sale of bottled water at 20
compared to 35 in case of drinks
Lead Players amp Alliances
Company Share ()
Aradhana 34
Varun Beverages 15
Devyani Beverages 9
Kandhari Beverages 7
Ludhiana Beverages 7
Sri Sarvarya Sugars 6
Pearl Drinks 5
Pearl Beverages 6
0
Leading Brands
Coca Cola Thums Up Limca Fanta Gold Spot Rim Zim Maaza Pepsi Mirinda
7UP Mangola Slice Dukes Lemonada Crush Canada Dry Campa
Market Growth Rates
1990-91 - 1996-97 941996-97 - 2001-02 782001-02 - 2006-07 652004-05 - 2009-10 542009-10 - 2014-15 35 Sensitivity Coefficient 52Market Segmentation
Segment Share ()North 24East 18West 32South 26Rural 30Urban 70
0
Market Structure
Product Variation
Company Share ()Cola Drinks Thums Up 29Coca Cola 25Pepsi 18Non Cola Drinks Gold Spot 2Fanta 9Mirinda 8Limca 9Overall Colas 62Lemon Cloudy 7Clear 3Orange 17Mango 3Soda 8
(wwwmofpinicin)
0
Robust growth continues
The soft drinks industry continued on its path to recovery from the low growth seen between 2005 and 2006 with higher volume growth in 2008 than that seen in 2007 The mature sectors of bottled water fruitvegetable juice and carbonates saw a dynamic year with companies refreshing their productsrsquo brand image and packaging to attract new consumers Emerging product categories such as energy drinks and reconstituted 100 juice saw high double-digit growth rates as companies increased their productsrsquo penetration in India Off-trade volume growth was slightly higher than on-trade volume growth as convenient on-the-go packaging company sponsored chillers in kiranas and attractive supermarket displays fuelled off-trade sales across the market
Companies reposition their brands and update product portfolios
With the industry back on the upward growth curve companies refreshed their brands by introducing new and more premium packaging designs pack sizes and communication campaigns In 2008 bottled water was especially dynamic with all the major national brands following the cue of Bislerirsquos rebranding in late 2007 Carbonates and juice drinks were also reinvigorated with new pack sizes that targeted on-the-go consumption by young adults With ldquonaturally healthyrdquo becoming a key focus for consumers and manufacturers fruitvegetable drinks companies focused their efforts on highlighting their productsrsquo fresh fruit content and health attributes Companies put in motion plans to extend their product portfolios to emerging categories such as 100 juice energy drinks and flavoured water
Indian Product Range
0
Flavour Ingredients Pack Product Company
Cola Cola Flavour carbonated water sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Coke
Thumsup
RC
Pepsi
Coca-Coal
RC cola
Pepsi
Orange Orange Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Fanta
Mirinda
Coca-Cola
Pepsi
Fruit Juice Mango Pulp+ Treated water+ sugar
250 ML Maaza
Minute Maid Pullpy Orange
Slice
Tropicana
Appy Fizz
Real
Coca-Cola
Pepsi
Appy FizzDabur
Cloudy Lemon
Lemon Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Limca
LMN
Mirinda Lemon
Nimbooz
Coca-Cola
Parle agro
Pepsi
Clear Lemon Lemon Flavour+ Carbonated Water + Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Sprite
7rsquoUp
Dew
Coca-Cola
Pepsi
Rural Market Scenario
0
Indian Rural Market
The Indian growth story is now spreading itself to Indias hinterlands Rural India home to about two-thirds of the countryrsquos 1 billion population is not just witnessing an increase in its income but also in consumption and production The interim Budgets focus on extending the National Rural Employment Guarantee Act (NREGA) to all states with a US$ 583 billion outlay for 2009-10 would benefit the rural economy The rural economy got a further boost with the farmer loan waiver of US$ 1386 billion and the ambitious Bharat Nirman Programme with an outlay of US$ 3484 billion for improving rural infrastructure Additionally the rural economy has not been impacted by the global economic slowdown according to a recent study by the Rural Marketing Association of India (RMAI) The study found that the rural and small town economy which accounts for 60 per cent of Indiarsquos income has remained insulated from the economic slowdown Moreover rural incomes are on the rise driven largely due to continuous growth in agriculture for four consecutive years According to a McKinsey survey conducted in 2007 the rural India market would grow almost four times from its existing size in 2007 which was estimated at US$ 577 billion Furthermore high-end brands like Tommy Hilfiger are also bullish on small towns Small towns currently contribute around 20 per cent of the brandrsquos sales This could go up to one-third in two yearsrsquo time
lsquoRuralrsquo ndash 75 population engaged in agriculture related activity According to industry estimates 70 of population engaged in agricultural
activity1048699 700 million people (Aug 2002)1048699 13rd of countryrsquos GNP1048699 450 districts 630000 villages approx
Rural India is also characterized by growing affluenceagricultural output increasingly to early 215 millions tones in 2004 compared to 176 millions in 1991
Key to success in Rural India
0
Physical Distribution Channel Management Promotion and Marketing Communication
Rural Marketing Key Strategy
Three As
Availability Capacity expansion ndash 25 prod lines and doubled bottle capacity Unique and different distribution strategy ndash hub amp spoke
distribution Coverage of 158342 villages by Aug 2003 (81383 in 2001) 200000 refrigerators to rural retailers
Affordability Introduction of 200ml bottle Priced at Rs 7 closed the gap
between Coke and basic refreshments
Acceptability Mass media marketing Launched TVCs targeted at rural consumers
0
0
LITERATURE REVIEW
1-A study of factors responsible for brand preference in fmcg sectorrdquo The purpose of this paper is the study of factors responsible for brand preference in fmcg products increasing competition more due to globalization is motivating many companies to base their strategies almost entirely on building brands Brand preference means to compare the different brands and opt for the most preferred brand This brand preference is influenced by various factorsAccording to this study many factors were find out for preferring a brand likeBrand persona Brand constancyBrand loftinessBrand valueIn the identification of factors affecting the brand preference it was concluded that brand persona is the most effective factor that affects the brand preference This brand persona deals with the personality aspects or the external attributes of brand thus it can be said that consumer prefer any brand by looking at the external attributes of a brand
-journal of ims vol 5 no1 jan-june 2008
2-Colour and flavour rule consumer preferences Study
The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse ldquoCompanies need to continuously innovate to maintain market leadershiprdquo wrote the researchers ldquoWhen the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumersrdquo ldquoThis experiment
0
showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approachesrdquo The study also demonstrates the importance of flavour and colour selection for new products
The global flavours market was been valued at some US$18bn in 2006 (Business Insights) Meanwhile the value of the international colourings market was estimated at around $115bn in 2007 (euro731m) up 25 per cent from $107bn (680m) in 2004 according to Leatherhead Food International (LFI) Natural colours now make up 31 per cent of the colourings market compared with 40 per cent for synthetics according to LFI
Bombarding the senses
By choosing to formulate a new beverage the researchers noted that the new product would need to be differentiated by improving the sensory characteristics
Four factors were identified for the formulation four colour intensities) three flavourings two label types (soft versus hard) and two pack sizes (standard versus oversize) By using both quantitative (hedonic testing) and qualitative (focus groups) approaches the researchers found that ldquothe main factors which drive consumer preference for this concept are colour intensity and flavouringrdquo Indeed colour intensity accounted for 43 per cent and flavour 32 per cent of the consumersrsquo overall liking ldquoPack size and label type are taken into account by the consumer to a lesser extendrdquo they added ldquoThis methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumersrsquo expectation it has now to be reproduced as every brand concept and product is a unique combination designed for a specific consumer grouprdquo concluded the researchers
Source Food Quality and PreferenceVolume 19 Issue 8 Pages 719-726By Stephen Daniells 07-Oct-2008
0
3- Taste or health A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits Data were analyzed 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 saltiness drinks flavor and greasiness These variables emerged as the first factor in the analysis suggesting 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 respondents attitudes toward fat in the diet Factor 3 comprised two remaining sensory attributes (color 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
Source-Beverly J Tepper and Amy C Trail Journal of Food Science and Technology 15 September 1998
Rural Consumer BehaviorConsumer Buyer Behavior refers to the buying behavior of final consumers ndash individuals and households who buy goods and services for personal consumption All of these final consumers combined make up the consumer market The consumer market in this case is Rural India About 70 of Indias population lives in rural areas There are more than 600000 villages in the country as against about 300 cities and 4600 towns Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use Villagers react differently to different products colors sizes etc in different parts of India Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India Thus it is important to study the thought process that goes into making a purchase decision so that marketers can reach this huge untapped segment
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
It was noticed for the first time during the summer of 2004 that soft drink
companies were registering a slower growth in the sale of bottled water at 20
compared to 35 in case of drinks
Lead Players amp Alliances
Company Share ()
Aradhana 34
Varun Beverages 15
Devyani Beverages 9
Kandhari Beverages 7
Ludhiana Beverages 7
Sri Sarvarya Sugars 6
Pearl Drinks 5
Pearl Beverages 6
0
Leading Brands
Coca Cola Thums Up Limca Fanta Gold Spot Rim Zim Maaza Pepsi Mirinda
7UP Mangola Slice Dukes Lemonada Crush Canada Dry Campa
Market Growth Rates
1990-91 - 1996-97 941996-97 - 2001-02 782001-02 - 2006-07 652004-05 - 2009-10 542009-10 - 2014-15 35 Sensitivity Coefficient 52Market Segmentation
Segment Share ()North 24East 18West 32South 26Rural 30Urban 70
0
Market Structure
Product Variation
Company Share ()Cola Drinks Thums Up 29Coca Cola 25Pepsi 18Non Cola Drinks Gold Spot 2Fanta 9Mirinda 8Limca 9Overall Colas 62Lemon Cloudy 7Clear 3Orange 17Mango 3Soda 8
(wwwmofpinicin)
0
Robust growth continues
The soft drinks industry continued on its path to recovery from the low growth seen between 2005 and 2006 with higher volume growth in 2008 than that seen in 2007 The mature sectors of bottled water fruitvegetable juice and carbonates saw a dynamic year with companies refreshing their productsrsquo brand image and packaging to attract new consumers Emerging product categories such as energy drinks and reconstituted 100 juice saw high double-digit growth rates as companies increased their productsrsquo penetration in India Off-trade volume growth was slightly higher than on-trade volume growth as convenient on-the-go packaging company sponsored chillers in kiranas and attractive supermarket displays fuelled off-trade sales across the market
Companies reposition their brands and update product portfolios
With the industry back on the upward growth curve companies refreshed their brands by introducing new and more premium packaging designs pack sizes and communication campaigns In 2008 bottled water was especially dynamic with all the major national brands following the cue of Bislerirsquos rebranding in late 2007 Carbonates and juice drinks were also reinvigorated with new pack sizes that targeted on-the-go consumption by young adults With ldquonaturally healthyrdquo becoming a key focus for consumers and manufacturers fruitvegetable drinks companies focused their efforts on highlighting their productsrsquo fresh fruit content and health attributes Companies put in motion plans to extend their product portfolios to emerging categories such as 100 juice energy drinks and flavoured water
Indian Product Range
0
Flavour Ingredients Pack Product Company
Cola Cola Flavour carbonated water sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Coke
Thumsup
RC
Pepsi
Coca-Coal
RC cola
Pepsi
Orange Orange Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Fanta
Mirinda
Coca-Cola
Pepsi
Fruit Juice Mango Pulp+ Treated water+ sugar
250 ML Maaza
Minute Maid Pullpy Orange
Slice
Tropicana
Appy Fizz
Real
Coca-Cola
Pepsi
Appy FizzDabur
Cloudy Lemon
Lemon Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Limca
LMN
Mirinda Lemon
Nimbooz
Coca-Cola
Parle agro
Pepsi
Clear Lemon Lemon Flavour+ Carbonated Water + Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Sprite
7rsquoUp
Dew
Coca-Cola
Pepsi
Rural Market Scenario
0
Indian Rural Market
The Indian growth story is now spreading itself to Indias hinterlands Rural India home to about two-thirds of the countryrsquos 1 billion population is not just witnessing an increase in its income but also in consumption and production The interim Budgets focus on extending the National Rural Employment Guarantee Act (NREGA) to all states with a US$ 583 billion outlay for 2009-10 would benefit the rural economy The rural economy got a further boost with the farmer loan waiver of US$ 1386 billion and the ambitious Bharat Nirman Programme with an outlay of US$ 3484 billion for improving rural infrastructure Additionally the rural economy has not been impacted by the global economic slowdown according to a recent study by the Rural Marketing Association of India (RMAI) The study found that the rural and small town economy which accounts for 60 per cent of Indiarsquos income has remained insulated from the economic slowdown Moreover rural incomes are on the rise driven largely due to continuous growth in agriculture for four consecutive years According to a McKinsey survey conducted in 2007 the rural India market would grow almost four times from its existing size in 2007 which was estimated at US$ 577 billion Furthermore high-end brands like Tommy Hilfiger are also bullish on small towns Small towns currently contribute around 20 per cent of the brandrsquos sales This could go up to one-third in two yearsrsquo time
lsquoRuralrsquo ndash 75 population engaged in agriculture related activity According to industry estimates 70 of population engaged in agricultural
activity1048699 700 million people (Aug 2002)1048699 13rd of countryrsquos GNP1048699 450 districts 630000 villages approx
Rural India is also characterized by growing affluenceagricultural output increasingly to early 215 millions tones in 2004 compared to 176 millions in 1991
Key to success in Rural India
0
Physical Distribution Channel Management Promotion and Marketing Communication
Rural Marketing Key Strategy
Three As
Availability Capacity expansion ndash 25 prod lines and doubled bottle capacity Unique and different distribution strategy ndash hub amp spoke
distribution Coverage of 158342 villages by Aug 2003 (81383 in 2001) 200000 refrigerators to rural retailers
Affordability Introduction of 200ml bottle Priced at Rs 7 closed the gap
between Coke and basic refreshments
Acceptability Mass media marketing Launched TVCs targeted at rural consumers
0
0
LITERATURE REVIEW
1-A study of factors responsible for brand preference in fmcg sectorrdquo The purpose of this paper is the study of factors responsible for brand preference in fmcg products increasing competition more due to globalization is motivating many companies to base their strategies almost entirely on building brands Brand preference means to compare the different brands and opt for the most preferred brand This brand preference is influenced by various factorsAccording to this study many factors were find out for preferring a brand likeBrand persona Brand constancyBrand loftinessBrand valueIn the identification of factors affecting the brand preference it was concluded that brand persona is the most effective factor that affects the brand preference This brand persona deals with the personality aspects or the external attributes of brand thus it can be said that consumer prefer any brand by looking at the external attributes of a brand
-journal of ims vol 5 no1 jan-june 2008
2-Colour and flavour rule consumer preferences Study
The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse ldquoCompanies need to continuously innovate to maintain market leadershiprdquo wrote the researchers ldquoWhen the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumersrdquo ldquoThis experiment
0
showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approachesrdquo The study also demonstrates the importance of flavour and colour selection for new products
The global flavours market was been valued at some US$18bn in 2006 (Business Insights) Meanwhile the value of the international colourings market was estimated at around $115bn in 2007 (euro731m) up 25 per cent from $107bn (680m) in 2004 according to Leatherhead Food International (LFI) Natural colours now make up 31 per cent of the colourings market compared with 40 per cent for synthetics according to LFI
Bombarding the senses
By choosing to formulate a new beverage the researchers noted that the new product would need to be differentiated by improving the sensory characteristics
Four factors were identified for the formulation four colour intensities) three flavourings two label types (soft versus hard) and two pack sizes (standard versus oversize) By using both quantitative (hedonic testing) and qualitative (focus groups) approaches the researchers found that ldquothe main factors which drive consumer preference for this concept are colour intensity and flavouringrdquo Indeed colour intensity accounted for 43 per cent and flavour 32 per cent of the consumersrsquo overall liking ldquoPack size and label type are taken into account by the consumer to a lesser extendrdquo they added ldquoThis methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumersrsquo expectation it has now to be reproduced as every brand concept and product is a unique combination designed for a specific consumer grouprdquo concluded the researchers
Source Food Quality and PreferenceVolume 19 Issue 8 Pages 719-726By Stephen Daniells 07-Oct-2008
0
3- Taste or health A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits Data were analyzed 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 saltiness drinks flavor and greasiness These variables emerged as the first factor in the analysis suggesting 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 respondents attitudes toward fat in the diet Factor 3 comprised two remaining sensory attributes (color 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
Source-Beverly J Tepper and Amy C Trail Journal of Food Science and Technology 15 September 1998
Rural Consumer BehaviorConsumer Buyer Behavior refers to the buying behavior of final consumers ndash individuals and households who buy goods and services for personal consumption All of these final consumers combined make up the consumer market The consumer market in this case is Rural India About 70 of Indias population lives in rural areas There are more than 600000 villages in the country as against about 300 cities and 4600 towns Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use Villagers react differently to different products colors sizes etc in different parts of India Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India Thus it is important to study the thought process that goes into making a purchase decision so that marketers can reach this huge untapped segment
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
Leading Brands
Coca Cola Thums Up Limca Fanta Gold Spot Rim Zim Maaza Pepsi Mirinda
7UP Mangola Slice Dukes Lemonada Crush Canada Dry Campa
Market Growth Rates
1990-91 - 1996-97 941996-97 - 2001-02 782001-02 - 2006-07 652004-05 - 2009-10 542009-10 - 2014-15 35 Sensitivity Coefficient 52Market Segmentation
Segment Share ()North 24East 18West 32South 26Rural 30Urban 70
0
Market Structure
Product Variation
Company Share ()Cola Drinks Thums Up 29Coca Cola 25Pepsi 18Non Cola Drinks Gold Spot 2Fanta 9Mirinda 8Limca 9Overall Colas 62Lemon Cloudy 7Clear 3Orange 17Mango 3Soda 8
(wwwmofpinicin)
0
Robust growth continues
The soft drinks industry continued on its path to recovery from the low growth seen between 2005 and 2006 with higher volume growth in 2008 than that seen in 2007 The mature sectors of bottled water fruitvegetable juice and carbonates saw a dynamic year with companies refreshing their productsrsquo brand image and packaging to attract new consumers Emerging product categories such as energy drinks and reconstituted 100 juice saw high double-digit growth rates as companies increased their productsrsquo penetration in India Off-trade volume growth was slightly higher than on-trade volume growth as convenient on-the-go packaging company sponsored chillers in kiranas and attractive supermarket displays fuelled off-trade sales across the market
Companies reposition their brands and update product portfolios
With the industry back on the upward growth curve companies refreshed their brands by introducing new and more premium packaging designs pack sizes and communication campaigns In 2008 bottled water was especially dynamic with all the major national brands following the cue of Bislerirsquos rebranding in late 2007 Carbonates and juice drinks were also reinvigorated with new pack sizes that targeted on-the-go consumption by young adults With ldquonaturally healthyrdquo becoming a key focus for consumers and manufacturers fruitvegetable drinks companies focused their efforts on highlighting their productsrsquo fresh fruit content and health attributes Companies put in motion plans to extend their product portfolios to emerging categories such as 100 juice energy drinks and flavoured water
Indian Product Range
0
Flavour Ingredients Pack Product Company
Cola Cola Flavour carbonated water sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Coke
Thumsup
RC
Pepsi
Coca-Coal
RC cola
Pepsi
Orange Orange Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Fanta
Mirinda
Coca-Cola
Pepsi
Fruit Juice Mango Pulp+ Treated water+ sugar
250 ML Maaza
Minute Maid Pullpy Orange
Slice
Tropicana
Appy Fizz
Real
Coca-Cola
Pepsi
Appy FizzDabur
Cloudy Lemon
Lemon Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Limca
LMN
Mirinda Lemon
Nimbooz
Coca-Cola
Parle agro
Pepsi
Clear Lemon Lemon Flavour+ Carbonated Water + Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Sprite
7rsquoUp
Dew
Coca-Cola
Pepsi
Rural Market Scenario
0
Indian Rural Market
The Indian growth story is now spreading itself to Indias hinterlands Rural India home to about two-thirds of the countryrsquos 1 billion population is not just witnessing an increase in its income but also in consumption and production The interim Budgets focus on extending the National Rural Employment Guarantee Act (NREGA) to all states with a US$ 583 billion outlay for 2009-10 would benefit the rural economy The rural economy got a further boost with the farmer loan waiver of US$ 1386 billion and the ambitious Bharat Nirman Programme with an outlay of US$ 3484 billion for improving rural infrastructure Additionally the rural economy has not been impacted by the global economic slowdown according to a recent study by the Rural Marketing Association of India (RMAI) The study found that the rural and small town economy which accounts for 60 per cent of Indiarsquos income has remained insulated from the economic slowdown Moreover rural incomes are on the rise driven largely due to continuous growth in agriculture for four consecutive years According to a McKinsey survey conducted in 2007 the rural India market would grow almost four times from its existing size in 2007 which was estimated at US$ 577 billion Furthermore high-end brands like Tommy Hilfiger are also bullish on small towns Small towns currently contribute around 20 per cent of the brandrsquos sales This could go up to one-third in two yearsrsquo time
lsquoRuralrsquo ndash 75 population engaged in agriculture related activity According to industry estimates 70 of population engaged in agricultural
activity1048699 700 million people (Aug 2002)1048699 13rd of countryrsquos GNP1048699 450 districts 630000 villages approx
Rural India is also characterized by growing affluenceagricultural output increasingly to early 215 millions tones in 2004 compared to 176 millions in 1991
Key to success in Rural India
0
Physical Distribution Channel Management Promotion and Marketing Communication
Rural Marketing Key Strategy
Three As
Availability Capacity expansion ndash 25 prod lines and doubled bottle capacity Unique and different distribution strategy ndash hub amp spoke
distribution Coverage of 158342 villages by Aug 2003 (81383 in 2001) 200000 refrigerators to rural retailers
Affordability Introduction of 200ml bottle Priced at Rs 7 closed the gap
between Coke and basic refreshments
Acceptability Mass media marketing Launched TVCs targeted at rural consumers
0
0
LITERATURE REVIEW
1-A study of factors responsible for brand preference in fmcg sectorrdquo The purpose of this paper is the study of factors responsible for brand preference in fmcg products increasing competition more due to globalization is motivating many companies to base their strategies almost entirely on building brands Brand preference means to compare the different brands and opt for the most preferred brand This brand preference is influenced by various factorsAccording to this study many factors were find out for preferring a brand likeBrand persona Brand constancyBrand loftinessBrand valueIn the identification of factors affecting the brand preference it was concluded that brand persona is the most effective factor that affects the brand preference This brand persona deals with the personality aspects or the external attributes of brand thus it can be said that consumer prefer any brand by looking at the external attributes of a brand
-journal of ims vol 5 no1 jan-june 2008
2-Colour and flavour rule consumer preferences Study
The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse ldquoCompanies need to continuously innovate to maintain market leadershiprdquo wrote the researchers ldquoWhen the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumersrdquo ldquoThis experiment
0
showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approachesrdquo The study also demonstrates the importance of flavour and colour selection for new products
The global flavours market was been valued at some US$18bn in 2006 (Business Insights) Meanwhile the value of the international colourings market was estimated at around $115bn in 2007 (euro731m) up 25 per cent from $107bn (680m) in 2004 according to Leatherhead Food International (LFI) Natural colours now make up 31 per cent of the colourings market compared with 40 per cent for synthetics according to LFI
Bombarding the senses
By choosing to formulate a new beverage the researchers noted that the new product would need to be differentiated by improving the sensory characteristics
Four factors were identified for the formulation four colour intensities) three flavourings two label types (soft versus hard) and two pack sizes (standard versus oversize) By using both quantitative (hedonic testing) and qualitative (focus groups) approaches the researchers found that ldquothe main factors which drive consumer preference for this concept are colour intensity and flavouringrdquo Indeed colour intensity accounted for 43 per cent and flavour 32 per cent of the consumersrsquo overall liking ldquoPack size and label type are taken into account by the consumer to a lesser extendrdquo they added ldquoThis methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumersrsquo expectation it has now to be reproduced as every brand concept and product is a unique combination designed for a specific consumer grouprdquo concluded the researchers
Source Food Quality and PreferenceVolume 19 Issue 8 Pages 719-726By Stephen Daniells 07-Oct-2008
0
3- Taste or health A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits Data were analyzed 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 saltiness drinks flavor and greasiness These variables emerged as the first factor in the analysis suggesting 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 respondents attitudes toward fat in the diet Factor 3 comprised two remaining sensory attributes (color 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
Source-Beverly J Tepper and Amy C Trail Journal of Food Science and Technology 15 September 1998
Rural Consumer BehaviorConsumer Buyer Behavior refers to the buying behavior of final consumers ndash individuals and households who buy goods and services for personal consumption All of these final consumers combined make up the consumer market The consumer market in this case is Rural India About 70 of Indias population lives in rural areas There are more than 600000 villages in the country as against about 300 cities and 4600 towns Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use Villagers react differently to different products colors sizes etc in different parts of India Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India Thus it is important to study the thought process that goes into making a purchase decision so that marketers can reach this huge untapped segment
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
Market Structure
Product Variation
Company Share ()Cola Drinks Thums Up 29Coca Cola 25Pepsi 18Non Cola Drinks Gold Spot 2Fanta 9Mirinda 8Limca 9Overall Colas 62Lemon Cloudy 7Clear 3Orange 17Mango 3Soda 8
(wwwmofpinicin)
0
Robust growth continues
The soft drinks industry continued on its path to recovery from the low growth seen between 2005 and 2006 with higher volume growth in 2008 than that seen in 2007 The mature sectors of bottled water fruitvegetable juice and carbonates saw a dynamic year with companies refreshing their productsrsquo brand image and packaging to attract new consumers Emerging product categories such as energy drinks and reconstituted 100 juice saw high double-digit growth rates as companies increased their productsrsquo penetration in India Off-trade volume growth was slightly higher than on-trade volume growth as convenient on-the-go packaging company sponsored chillers in kiranas and attractive supermarket displays fuelled off-trade sales across the market
Companies reposition their brands and update product portfolios
With the industry back on the upward growth curve companies refreshed their brands by introducing new and more premium packaging designs pack sizes and communication campaigns In 2008 bottled water was especially dynamic with all the major national brands following the cue of Bislerirsquos rebranding in late 2007 Carbonates and juice drinks were also reinvigorated with new pack sizes that targeted on-the-go consumption by young adults With ldquonaturally healthyrdquo becoming a key focus for consumers and manufacturers fruitvegetable drinks companies focused their efforts on highlighting their productsrsquo fresh fruit content and health attributes Companies put in motion plans to extend their product portfolios to emerging categories such as 100 juice energy drinks and flavoured water
Indian Product Range
0
Flavour Ingredients Pack Product Company
Cola Cola Flavour carbonated water sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Coke
Thumsup
RC
Pepsi
Coca-Coal
RC cola
Pepsi
Orange Orange Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Fanta
Mirinda
Coca-Cola
Pepsi
Fruit Juice Mango Pulp+ Treated water+ sugar
250 ML Maaza
Minute Maid Pullpy Orange
Slice
Tropicana
Appy Fizz
Real
Coca-Cola
Pepsi
Appy FizzDabur
Cloudy Lemon
Lemon Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Limca
LMN
Mirinda Lemon
Nimbooz
Coca-Cola
Parle agro
Pepsi
Clear Lemon Lemon Flavour+ Carbonated Water + Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Sprite
7rsquoUp
Dew
Coca-Cola
Pepsi
Rural Market Scenario
0
Indian Rural Market
The Indian growth story is now spreading itself to Indias hinterlands Rural India home to about two-thirds of the countryrsquos 1 billion population is not just witnessing an increase in its income but also in consumption and production The interim Budgets focus on extending the National Rural Employment Guarantee Act (NREGA) to all states with a US$ 583 billion outlay for 2009-10 would benefit the rural economy The rural economy got a further boost with the farmer loan waiver of US$ 1386 billion and the ambitious Bharat Nirman Programme with an outlay of US$ 3484 billion for improving rural infrastructure Additionally the rural economy has not been impacted by the global economic slowdown according to a recent study by the Rural Marketing Association of India (RMAI) The study found that the rural and small town economy which accounts for 60 per cent of Indiarsquos income has remained insulated from the economic slowdown Moreover rural incomes are on the rise driven largely due to continuous growth in agriculture for four consecutive years According to a McKinsey survey conducted in 2007 the rural India market would grow almost four times from its existing size in 2007 which was estimated at US$ 577 billion Furthermore high-end brands like Tommy Hilfiger are also bullish on small towns Small towns currently contribute around 20 per cent of the brandrsquos sales This could go up to one-third in two yearsrsquo time
lsquoRuralrsquo ndash 75 population engaged in agriculture related activity According to industry estimates 70 of population engaged in agricultural
activity1048699 700 million people (Aug 2002)1048699 13rd of countryrsquos GNP1048699 450 districts 630000 villages approx
Rural India is also characterized by growing affluenceagricultural output increasingly to early 215 millions tones in 2004 compared to 176 millions in 1991
Key to success in Rural India
0
Physical Distribution Channel Management Promotion and Marketing Communication
Rural Marketing Key Strategy
Three As
Availability Capacity expansion ndash 25 prod lines and doubled bottle capacity Unique and different distribution strategy ndash hub amp spoke
distribution Coverage of 158342 villages by Aug 2003 (81383 in 2001) 200000 refrigerators to rural retailers
Affordability Introduction of 200ml bottle Priced at Rs 7 closed the gap
between Coke and basic refreshments
Acceptability Mass media marketing Launched TVCs targeted at rural consumers
0
0
LITERATURE REVIEW
1-A study of factors responsible for brand preference in fmcg sectorrdquo The purpose of this paper is the study of factors responsible for brand preference in fmcg products increasing competition more due to globalization is motivating many companies to base their strategies almost entirely on building brands Brand preference means to compare the different brands and opt for the most preferred brand This brand preference is influenced by various factorsAccording to this study many factors were find out for preferring a brand likeBrand persona Brand constancyBrand loftinessBrand valueIn the identification of factors affecting the brand preference it was concluded that brand persona is the most effective factor that affects the brand preference This brand persona deals with the personality aspects or the external attributes of brand thus it can be said that consumer prefer any brand by looking at the external attributes of a brand
-journal of ims vol 5 no1 jan-june 2008
2-Colour and flavour rule consumer preferences Study
The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse ldquoCompanies need to continuously innovate to maintain market leadershiprdquo wrote the researchers ldquoWhen the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumersrdquo ldquoThis experiment
0
showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approachesrdquo The study also demonstrates the importance of flavour and colour selection for new products
The global flavours market was been valued at some US$18bn in 2006 (Business Insights) Meanwhile the value of the international colourings market was estimated at around $115bn in 2007 (euro731m) up 25 per cent from $107bn (680m) in 2004 according to Leatherhead Food International (LFI) Natural colours now make up 31 per cent of the colourings market compared with 40 per cent for synthetics according to LFI
Bombarding the senses
By choosing to formulate a new beverage the researchers noted that the new product would need to be differentiated by improving the sensory characteristics
Four factors were identified for the formulation four colour intensities) three flavourings two label types (soft versus hard) and two pack sizes (standard versus oversize) By using both quantitative (hedonic testing) and qualitative (focus groups) approaches the researchers found that ldquothe main factors which drive consumer preference for this concept are colour intensity and flavouringrdquo Indeed colour intensity accounted for 43 per cent and flavour 32 per cent of the consumersrsquo overall liking ldquoPack size and label type are taken into account by the consumer to a lesser extendrdquo they added ldquoThis methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumersrsquo expectation it has now to be reproduced as every brand concept and product is a unique combination designed for a specific consumer grouprdquo concluded the researchers
Source Food Quality and PreferenceVolume 19 Issue 8 Pages 719-726By Stephen Daniells 07-Oct-2008
0
3- Taste or health A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits Data were analyzed 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 saltiness drinks flavor and greasiness These variables emerged as the first factor in the analysis suggesting 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 respondents attitudes toward fat in the diet Factor 3 comprised two remaining sensory attributes (color 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
Source-Beverly J Tepper and Amy C Trail Journal of Food Science and Technology 15 September 1998
Rural Consumer BehaviorConsumer Buyer Behavior refers to the buying behavior of final consumers ndash individuals and households who buy goods and services for personal consumption All of these final consumers combined make up the consumer market The consumer market in this case is Rural India About 70 of Indias population lives in rural areas There are more than 600000 villages in the country as against about 300 cities and 4600 towns Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use Villagers react differently to different products colors sizes etc in different parts of India Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India Thus it is important to study the thought process that goes into making a purchase decision so that marketers can reach this huge untapped segment
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
Robust growth continues
The soft drinks industry continued on its path to recovery from the low growth seen between 2005 and 2006 with higher volume growth in 2008 than that seen in 2007 The mature sectors of bottled water fruitvegetable juice and carbonates saw a dynamic year with companies refreshing their productsrsquo brand image and packaging to attract new consumers Emerging product categories such as energy drinks and reconstituted 100 juice saw high double-digit growth rates as companies increased their productsrsquo penetration in India Off-trade volume growth was slightly higher than on-trade volume growth as convenient on-the-go packaging company sponsored chillers in kiranas and attractive supermarket displays fuelled off-trade sales across the market
Companies reposition their brands and update product portfolios
With the industry back on the upward growth curve companies refreshed their brands by introducing new and more premium packaging designs pack sizes and communication campaigns In 2008 bottled water was especially dynamic with all the major national brands following the cue of Bislerirsquos rebranding in late 2007 Carbonates and juice drinks were also reinvigorated with new pack sizes that targeted on-the-go consumption by young adults With ldquonaturally healthyrdquo becoming a key focus for consumers and manufacturers fruitvegetable drinks companies focused their efforts on highlighting their productsrsquo fresh fruit content and health attributes Companies put in motion plans to extend their product portfolios to emerging categories such as 100 juice energy drinks and flavoured water
Indian Product Range
0
Flavour Ingredients Pack Product Company
Cola Cola Flavour carbonated water sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Coke
Thumsup
RC
Pepsi
Coca-Coal
RC cola
Pepsi
Orange Orange Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Fanta
Mirinda
Coca-Cola
Pepsi
Fruit Juice Mango Pulp+ Treated water+ sugar
250 ML Maaza
Minute Maid Pullpy Orange
Slice
Tropicana
Appy Fizz
Real
Coca-Cola
Pepsi
Appy FizzDabur
Cloudy Lemon
Lemon Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Limca
LMN
Mirinda Lemon
Nimbooz
Coca-Cola
Parle agro
Pepsi
Clear Lemon Lemon Flavour+ Carbonated Water + Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Sprite
7rsquoUp
Dew
Coca-Cola
Pepsi
Rural Market Scenario
0
Indian Rural Market
The Indian growth story is now spreading itself to Indias hinterlands Rural India home to about two-thirds of the countryrsquos 1 billion population is not just witnessing an increase in its income but also in consumption and production The interim Budgets focus on extending the National Rural Employment Guarantee Act (NREGA) to all states with a US$ 583 billion outlay for 2009-10 would benefit the rural economy The rural economy got a further boost with the farmer loan waiver of US$ 1386 billion and the ambitious Bharat Nirman Programme with an outlay of US$ 3484 billion for improving rural infrastructure Additionally the rural economy has not been impacted by the global economic slowdown according to a recent study by the Rural Marketing Association of India (RMAI) The study found that the rural and small town economy which accounts for 60 per cent of Indiarsquos income has remained insulated from the economic slowdown Moreover rural incomes are on the rise driven largely due to continuous growth in agriculture for four consecutive years According to a McKinsey survey conducted in 2007 the rural India market would grow almost four times from its existing size in 2007 which was estimated at US$ 577 billion Furthermore high-end brands like Tommy Hilfiger are also bullish on small towns Small towns currently contribute around 20 per cent of the brandrsquos sales This could go up to one-third in two yearsrsquo time
lsquoRuralrsquo ndash 75 population engaged in agriculture related activity According to industry estimates 70 of population engaged in agricultural
activity1048699 700 million people (Aug 2002)1048699 13rd of countryrsquos GNP1048699 450 districts 630000 villages approx
Rural India is also characterized by growing affluenceagricultural output increasingly to early 215 millions tones in 2004 compared to 176 millions in 1991
Key to success in Rural India
0
Physical Distribution Channel Management Promotion and Marketing Communication
Rural Marketing Key Strategy
Three As
Availability Capacity expansion ndash 25 prod lines and doubled bottle capacity Unique and different distribution strategy ndash hub amp spoke
distribution Coverage of 158342 villages by Aug 2003 (81383 in 2001) 200000 refrigerators to rural retailers
Affordability Introduction of 200ml bottle Priced at Rs 7 closed the gap
between Coke and basic refreshments
Acceptability Mass media marketing Launched TVCs targeted at rural consumers
0
0
LITERATURE REVIEW
1-A study of factors responsible for brand preference in fmcg sectorrdquo The purpose of this paper is the study of factors responsible for brand preference in fmcg products increasing competition more due to globalization is motivating many companies to base their strategies almost entirely on building brands Brand preference means to compare the different brands and opt for the most preferred brand This brand preference is influenced by various factorsAccording to this study many factors were find out for preferring a brand likeBrand persona Brand constancyBrand loftinessBrand valueIn the identification of factors affecting the brand preference it was concluded that brand persona is the most effective factor that affects the brand preference This brand persona deals with the personality aspects or the external attributes of brand thus it can be said that consumer prefer any brand by looking at the external attributes of a brand
-journal of ims vol 5 no1 jan-june 2008
2-Colour and flavour rule consumer preferences Study
The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse ldquoCompanies need to continuously innovate to maintain market leadershiprdquo wrote the researchers ldquoWhen the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumersrdquo ldquoThis experiment
0
showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approachesrdquo The study also demonstrates the importance of flavour and colour selection for new products
The global flavours market was been valued at some US$18bn in 2006 (Business Insights) Meanwhile the value of the international colourings market was estimated at around $115bn in 2007 (euro731m) up 25 per cent from $107bn (680m) in 2004 according to Leatherhead Food International (LFI) Natural colours now make up 31 per cent of the colourings market compared with 40 per cent for synthetics according to LFI
Bombarding the senses
By choosing to formulate a new beverage the researchers noted that the new product would need to be differentiated by improving the sensory characteristics
Four factors were identified for the formulation four colour intensities) three flavourings two label types (soft versus hard) and two pack sizes (standard versus oversize) By using both quantitative (hedonic testing) and qualitative (focus groups) approaches the researchers found that ldquothe main factors which drive consumer preference for this concept are colour intensity and flavouringrdquo Indeed colour intensity accounted for 43 per cent and flavour 32 per cent of the consumersrsquo overall liking ldquoPack size and label type are taken into account by the consumer to a lesser extendrdquo they added ldquoThis methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumersrsquo expectation it has now to be reproduced as every brand concept and product is a unique combination designed for a specific consumer grouprdquo concluded the researchers
Source Food Quality and PreferenceVolume 19 Issue 8 Pages 719-726By Stephen Daniells 07-Oct-2008
0
3- Taste or health A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits Data were analyzed 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 saltiness drinks flavor and greasiness These variables emerged as the first factor in the analysis suggesting 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 respondents attitudes toward fat in the diet Factor 3 comprised two remaining sensory attributes (color 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
Source-Beverly J Tepper and Amy C Trail Journal of Food Science and Technology 15 September 1998
Rural Consumer BehaviorConsumer Buyer Behavior refers to the buying behavior of final consumers ndash individuals and households who buy goods and services for personal consumption All of these final consumers combined make up the consumer market The consumer market in this case is Rural India About 70 of Indias population lives in rural areas There are more than 600000 villages in the country as against about 300 cities and 4600 towns Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use Villagers react differently to different products colors sizes etc in different parts of India Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India Thus it is important to study the thought process that goes into making a purchase decision so that marketers can reach this huge untapped segment
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
Flavour Ingredients Pack Product Company
Cola Cola Flavour carbonated water sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Coke
Thumsup
RC
Pepsi
Coca-Coal
RC cola
Pepsi
Orange Orange Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Fanta
Mirinda
Coca-Cola
Pepsi
Fruit Juice Mango Pulp+ Treated water+ sugar
250 ML Maaza
Minute Maid Pullpy Orange
Slice
Tropicana
Appy Fizz
Real
Coca-Cola
Pepsi
Appy FizzDabur
Cloudy Lemon
Lemon Flavour + Carbonated Water+ Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Limca
LMN
Mirinda Lemon
Nimbooz
Coca-Cola
Parle agro
Pepsi
Clear Lemon Lemon Flavour+ Carbonated Water + Sugar
200Ml
300Ml
500Ml
1 Litre
15 Litre
2 Litre
Sprite
7rsquoUp
Dew
Coca-Cola
Pepsi
Rural Market Scenario
0
Indian Rural Market
The Indian growth story is now spreading itself to Indias hinterlands Rural India home to about two-thirds of the countryrsquos 1 billion population is not just witnessing an increase in its income but also in consumption and production The interim Budgets focus on extending the National Rural Employment Guarantee Act (NREGA) to all states with a US$ 583 billion outlay for 2009-10 would benefit the rural economy The rural economy got a further boost with the farmer loan waiver of US$ 1386 billion and the ambitious Bharat Nirman Programme with an outlay of US$ 3484 billion for improving rural infrastructure Additionally the rural economy has not been impacted by the global economic slowdown according to a recent study by the Rural Marketing Association of India (RMAI) The study found that the rural and small town economy which accounts for 60 per cent of Indiarsquos income has remained insulated from the economic slowdown Moreover rural incomes are on the rise driven largely due to continuous growth in agriculture for four consecutive years According to a McKinsey survey conducted in 2007 the rural India market would grow almost four times from its existing size in 2007 which was estimated at US$ 577 billion Furthermore high-end brands like Tommy Hilfiger are also bullish on small towns Small towns currently contribute around 20 per cent of the brandrsquos sales This could go up to one-third in two yearsrsquo time
lsquoRuralrsquo ndash 75 population engaged in agriculture related activity According to industry estimates 70 of population engaged in agricultural
activity1048699 700 million people (Aug 2002)1048699 13rd of countryrsquos GNP1048699 450 districts 630000 villages approx
Rural India is also characterized by growing affluenceagricultural output increasingly to early 215 millions tones in 2004 compared to 176 millions in 1991
Key to success in Rural India
0
Physical Distribution Channel Management Promotion and Marketing Communication
Rural Marketing Key Strategy
Three As
Availability Capacity expansion ndash 25 prod lines and doubled bottle capacity Unique and different distribution strategy ndash hub amp spoke
distribution Coverage of 158342 villages by Aug 2003 (81383 in 2001) 200000 refrigerators to rural retailers
Affordability Introduction of 200ml bottle Priced at Rs 7 closed the gap
between Coke and basic refreshments
Acceptability Mass media marketing Launched TVCs targeted at rural consumers
0
0
LITERATURE REVIEW
1-A study of factors responsible for brand preference in fmcg sectorrdquo The purpose of this paper is the study of factors responsible for brand preference in fmcg products increasing competition more due to globalization is motivating many companies to base their strategies almost entirely on building brands Brand preference means to compare the different brands and opt for the most preferred brand This brand preference is influenced by various factorsAccording to this study many factors were find out for preferring a brand likeBrand persona Brand constancyBrand loftinessBrand valueIn the identification of factors affecting the brand preference it was concluded that brand persona is the most effective factor that affects the brand preference This brand persona deals with the personality aspects or the external attributes of brand thus it can be said that consumer prefer any brand by looking at the external attributes of a brand
-journal of ims vol 5 no1 jan-june 2008
2-Colour and flavour rule consumer preferences Study
The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse ldquoCompanies need to continuously innovate to maintain market leadershiprdquo wrote the researchers ldquoWhen the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumersrdquo ldquoThis experiment
0
showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approachesrdquo The study also demonstrates the importance of flavour and colour selection for new products
The global flavours market was been valued at some US$18bn in 2006 (Business Insights) Meanwhile the value of the international colourings market was estimated at around $115bn in 2007 (euro731m) up 25 per cent from $107bn (680m) in 2004 according to Leatherhead Food International (LFI) Natural colours now make up 31 per cent of the colourings market compared with 40 per cent for synthetics according to LFI
Bombarding the senses
By choosing to formulate a new beverage the researchers noted that the new product would need to be differentiated by improving the sensory characteristics
Four factors were identified for the formulation four colour intensities) three flavourings two label types (soft versus hard) and two pack sizes (standard versus oversize) By using both quantitative (hedonic testing) and qualitative (focus groups) approaches the researchers found that ldquothe main factors which drive consumer preference for this concept are colour intensity and flavouringrdquo Indeed colour intensity accounted for 43 per cent and flavour 32 per cent of the consumersrsquo overall liking ldquoPack size and label type are taken into account by the consumer to a lesser extendrdquo they added ldquoThis methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumersrsquo expectation it has now to be reproduced as every brand concept and product is a unique combination designed for a specific consumer grouprdquo concluded the researchers
Source Food Quality and PreferenceVolume 19 Issue 8 Pages 719-726By Stephen Daniells 07-Oct-2008
0
3- Taste or health A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits Data were analyzed 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 saltiness drinks flavor and greasiness These variables emerged as the first factor in the analysis suggesting 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 respondents attitudes toward fat in the diet Factor 3 comprised two remaining sensory attributes (color 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
Source-Beverly J Tepper and Amy C Trail Journal of Food Science and Technology 15 September 1998
Rural Consumer BehaviorConsumer Buyer Behavior refers to the buying behavior of final consumers ndash individuals and households who buy goods and services for personal consumption All of these final consumers combined make up the consumer market The consumer market in this case is Rural India About 70 of Indias population lives in rural areas There are more than 600000 villages in the country as against about 300 cities and 4600 towns Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use Villagers react differently to different products colors sizes etc in different parts of India Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India Thus it is important to study the thought process that goes into making a purchase decision so that marketers can reach this huge untapped segment
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
Indian Rural Market
The Indian growth story is now spreading itself to Indias hinterlands Rural India home to about two-thirds of the countryrsquos 1 billion population is not just witnessing an increase in its income but also in consumption and production The interim Budgets focus on extending the National Rural Employment Guarantee Act (NREGA) to all states with a US$ 583 billion outlay for 2009-10 would benefit the rural economy The rural economy got a further boost with the farmer loan waiver of US$ 1386 billion and the ambitious Bharat Nirman Programme with an outlay of US$ 3484 billion for improving rural infrastructure Additionally the rural economy has not been impacted by the global economic slowdown according to a recent study by the Rural Marketing Association of India (RMAI) The study found that the rural and small town economy which accounts for 60 per cent of Indiarsquos income has remained insulated from the economic slowdown Moreover rural incomes are on the rise driven largely due to continuous growth in agriculture for four consecutive years According to a McKinsey survey conducted in 2007 the rural India market would grow almost four times from its existing size in 2007 which was estimated at US$ 577 billion Furthermore high-end brands like Tommy Hilfiger are also bullish on small towns Small towns currently contribute around 20 per cent of the brandrsquos sales This could go up to one-third in two yearsrsquo time
lsquoRuralrsquo ndash 75 population engaged in agriculture related activity According to industry estimates 70 of population engaged in agricultural
activity1048699 700 million people (Aug 2002)1048699 13rd of countryrsquos GNP1048699 450 districts 630000 villages approx
Rural India is also characterized by growing affluenceagricultural output increasingly to early 215 millions tones in 2004 compared to 176 millions in 1991
Key to success in Rural India
0
Physical Distribution Channel Management Promotion and Marketing Communication
Rural Marketing Key Strategy
Three As
Availability Capacity expansion ndash 25 prod lines and doubled bottle capacity Unique and different distribution strategy ndash hub amp spoke
distribution Coverage of 158342 villages by Aug 2003 (81383 in 2001) 200000 refrigerators to rural retailers
Affordability Introduction of 200ml bottle Priced at Rs 7 closed the gap
between Coke and basic refreshments
Acceptability Mass media marketing Launched TVCs targeted at rural consumers
0
0
LITERATURE REVIEW
1-A study of factors responsible for brand preference in fmcg sectorrdquo The purpose of this paper is the study of factors responsible for brand preference in fmcg products increasing competition more due to globalization is motivating many companies to base their strategies almost entirely on building brands Brand preference means to compare the different brands and opt for the most preferred brand This brand preference is influenced by various factorsAccording to this study many factors were find out for preferring a brand likeBrand persona Brand constancyBrand loftinessBrand valueIn the identification of factors affecting the brand preference it was concluded that brand persona is the most effective factor that affects the brand preference This brand persona deals with the personality aspects or the external attributes of brand thus it can be said that consumer prefer any brand by looking at the external attributes of a brand
-journal of ims vol 5 no1 jan-june 2008
2-Colour and flavour rule consumer preferences Study
The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse ldquoCompanies need to continuously innovate to maintain market leadershiprdquo wrote the researchers ldquoWhen the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumersrdquo ldquoThis experiment
0
showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approachesrdquo The study also demonstrates the importance of flavour and colour selection for new products
The global flavours market was been valued at some US$18bn in 2006 (Business Insights) Meanwhile the value of the international colourings market was estimated at around $115bn in 2007 (euro731m) up 25 per cent from $107bn (680m) in 2004 according to Leatherhead Food International (LFI) Natural colours now make up 31 per cent of the colourings market compared with 40 per cent for synthetics according to LFI
Bombarding the senses
By choosing to formulate a new beverage the researchers noted that the new product would need to be differentiated by improving the sensory characteristics
Four factors were identified for the formulation four colour intensities) three flavourings two label types (soft versus hard) and two pack sizes (standard versus oversize) By using both quantitative (hedonic testing) and qualitative (focus groups) approaches the researchers found that ldquothe main factors which drive consumer preference for this concept are colour intensity and flavouringrdquo Indeed colour intensity accounted for 43 per cent and flavour 32 per cent of the consumersrsquo overall liking ldquoPack size and label type are taken into account by the consumer to a lesser extendrdquo they added ldquoThis methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumersrsquo expectation it has now to be reproduced as every brand concept and product is a unique combination designed for a specific consumer grouprdquo concluded the researchers
Source Food Quality and PreferenceVolume 19 Issue 8 Pages 719-726By Stephen Daniells 07-Oct-2008
0
3- Taste or health A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits Data were analyzed 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 saltiness drinks flavor and greasiness These variables emerged as the first factor in the analysis suggesting 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 respondents attitudes toward fat in the diet Factor 3 comprised two remaining sensory attributes (color 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
Source-Beverly J Tepper and Amy C Trail Journal of Food Science and Technology 15 September 1998
Rural Consumer BehaviorConsumer Buyer Behavior refers to the buying behavior of final consumers ndash individuals and households who buy goods and services for personal consumption All of these final consumers combined make up the consumer market The consumer market in this case is Rural India About 70 of Indias population lives in rural areas There are more than 600000 villages in the country as against about 300 cities and 4600 towns Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use Villagers react differently to different products colors sizes etc in different parts of India Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India Thus it is important to study the thought process that goes into making a purchase decision so that marketers can reach this huge untapped segment
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
Physical Distribution Channel Management Promotion and Marketing Communication
Rural Marketing Key Strategy
Three As
Availability Capacity expansion ndash 25 prod lines and doubled bottle capacity Unique and different distribution strategy ndash hub amp spoke
distribution Coverage of 158342 villages by Aug 2003 (81383 in 2001) 200000 refrigerators to rural retailers
Affordability Introduction of 200ml bottle Priced at Rs 7 closed the gap
between Coke and basic refreshments
Acceptability Mass media marketing Launched TVCs targeted at rural consumers
0
0
LITERATURE REVIEW
1-A study of factors responsible for brand preference in fmcg sectorrdquo The purpose of this paper is the study of factors responsible for brand preference in fmcg products increasing competition more due to globalization is motivating many companies to base their strategies almost entirely on building brands Brand preference means to compare the different brands and opt for the most preferred brand This brand preference is influenced by various factorsAccording to this study many factors were find out for preferring a brand likeBrand persona Brand constancyBrand loftinessBrand valueIn the identification of factors affecting the brand preference it was concluded that brand persona is the most effective factor that affects the brand preference This brand persona deals with the personality aspects or the external attributes of brand thus it can be said that consumer prefer any brand by looking at the external attributes of a brand
-journal of ims vol 5 no1 jan-june 2008
2-Colour and flavour rule consumer preferences Study
The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse ldquoCompanies need to continuously innovate to maintain market leadershiprdquo wrote the researchers ldquoWhen the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumersrdquo ldquoThis experiment
0
showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approachesrdquo The study also demonstrates the importance of flavour and colour selection for new products
The global flavours market was been valued at some US$18bn in 2006 (Business Insights) Meanwhile the value of the international colourings market was estimated at around $115bn in 2007 (euro731m) up 25 per cent from $107bn (680m) in 2004 according to Leatherhead Food International (LFI) Natural colours now make up 31 per cent of the colourings market compared with 40 per cent for synthetics according to LFI
Bombarding the senses
By choosing to formulate a new beverage the researchers noted that the new product would need to be differentiated by improving the sensory characteristics
Four factors were identified for the formulation four colour intensities) three flavourings two label types (soft versus hard) and two pack sizes (standard versus oversize) By using both quantitative (hedonic testing) and qualitative (focus groups) approaches the researchers found that ldquothe main factors which drive consumer preference for this concept are colour intensity and flavouringrdquo Indeed colour intensity accounted for 43 per cent and flavour 32 per cent of the consumersrsquo overall liking ldquoPack size and label type are taken into account by the consumer to a lesser extendrdquo they added ldquoThis methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumersrsquo expectation it has now to be reproduced as every brand concept and product is a unique combination designed for a specific consumer grouprdquo concluded the researchers
Source Food Quality and PreferenceVolume 19 Issue 8 Pages 719-726By Stephen Daniells 07-Oct-2008
0
3- Taste or health A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits Data were analyzed 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 saltiness drinks flavor and greasiness These variables emerged as the first factor in the analysis suggesting 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 respondents attitudes toward fat in the diet Factor 3 comprised two remaining sensory attributes (color 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
Source-Beverly J Tepper and Amy C Trail Journal of Food Science and Technology 15 September 1998
Rural Consumer BehaviorConsumer Buyer Behavior refers to the buying behavior of final consumers ndash individuals and households who buy goods and services for personal consumption All of these final consumers combined make up the consumer market The consumer market in this case is Rural India About 70 of Indias population lives in rural areas There are more than 600000 villages in the country as against about 300 cities and 4600 towns Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use Villagers react differently to different products colors sizes etc in different parts of India Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India Thus it is important to study the thought process that goes into making a purchase decision so that marketers can reach this huge untapped segment
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
0
LITERATURE REVIEW
1-A study of factors responsible for brand preference in fmcg sectorrdquo The purpose of this paper is the study of factors responsible for brand preference in fmcg products increasing competition more due to globalization is motivating many companies to base their strategies almost entirely on building brands Brand preference means to compare the different brands and opt for the most preferred brand This brand preference is influenced by various factorsAccording to this study many factors were find out for preferring a brand likeBrand persona Brand constancyBrand loftinessBrand valueIn the identification of factors affecting the brand preference it was concluded that brand persona is the most effective factor that affects the brand preference This brand persona deals with the personality aspects or the external attributes of brand thus it can be said that consumer prefer any brand by looking at the external attributes of a brand
-journal of ims vol 5 no1 jan-june 2008
2-Colour and flavour rule consumer preferences Study
The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse ldquoCompanies need to continuously innovate to maintain market leadershiprdquo wrote the researchers ldquoWhen the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumersrdquo ldquoThis experiment
0
showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approachesrdquo The study also demonstrates the importance of flavour and colour selection for new products
The global flavours market was been valued at some US$18bn in 2006 (Business Insights) Meanwhile the value of the international colourings market was estimated at around $115bn in 2007 (euro731m) up 25 per cent from $107bn (680m) in 2004 according to Leatherhead Food International (LFI) Natural colours now make up 31 per cent of the colourings market compared with 40 per cent for synthetics according to LFI
Bombarding the senses
By choosing to formulate a new beverage the researchers noted that the new product would need to be differentiated by improving the sensory characteristics
Four factors were identified for the formulation four colour intensities) three flavourings two label types (soft versus hard) and two pack sizes (standard versus oversize) By using both quantitative (hedonic testing) and qualitative (focus groups) approaches the researchers found that ldquothe main factors which drive consumer preference for this concept are colour intensity and flavouringrdquo Indeed colour intensity accounted for 43 per cent and flavour 32 per cent of the consumersrsquo overall liking ldquoPack size and label type are taken into account by the consumer to a lesser extendrdquo they added ldquoThis methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumersrsquo expectation it has now to be reproduced as every brand concept and product is a unique combination designed for a specific consumer grouprdquo concluded the researchers
Source Food Quality and PreferenceVolume 19 Issue 8 Pages 719-726By Stephen Daniells 07-Oct-2008
0
3- Taste or health A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits Data were analyzed 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 saltiness drinks flavor and greasiness These variables emerged as the first factor in the analysis suggesting 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 respondents attitudes toward fat in the diet Factor 3 comprised two remaining sensory attributes (color 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
Source-Beverly J Tepper and Amy C Trail Journal of Food Science and Technology 15 September 1998
Rural Consumer BehaviorConsumer Buyer Behavior refers to the buying behavior of final consumers ndash individuals and households who buy goods and services for personal consumption All of these final consumers combined make up the consumer market The consumer market in this case is Rural India About 70 of Indias population lives in rural areas There are more than 600000 villages in the country as against about 300 cities and 4600 towns Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use Villagers react differently to different products colors sizes etc in different parts of India Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India Thus it is important to study the thought process that goes into making a purchase decision so that marketers can reach this huge untapped segment
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
LITERATURE REVIEW
1-A study of factors responsible for brand preference in fmcg sectorrdquo The purpose of this paper is the study of factors responsible for brand preference in fmcg products increasing competition more due to globalization is motivating many companies to base their strategies almost entirely on building brands Brand preference means to compare the different brands and opt for the most preferred brand This brand preference is influenced by various factorsAccording to this study many factors were find out for preferring a brand likeBrand persona Brand constancyBrand loftinessBrand valueIn the identification of factors affecting the brand preference it was concluded that brand persona is the most effective factor that affects the brand preference This brand persona deals with the personality aspects or the external attributes of brand thus it can be said that consumer prefer any brand by looking at the external attributes of a brand
-journal of ims vol 5 no1 jan-june 2008
2-Colour and flavour rule consumer preferences Study
The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse ldquoCompanies need to continuously innovate to maintain market leadershiprdquo wrote the researchers ldquoWhen the market is overloaded the challenge consists in creating innovative products able to attract and satisfy consumersrdquo ldquoThis experiment
0
showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approachesrdquo The study also demonstrates the importance of flavour and colour selection for new products
The global flavours market was been valued at some US$18bn in 2006 (Business Insights) Meanwhile the value of the international colourings market was estimated at around $115bn in 2007 (euro731m) up 25 per cent from $107bn (680m) in 2004 according to Leatherhead Food International (LFI) Natural colours now make up 31 per cent of the colourings market compared with 40 per cent for synthetics according to LFI
Bombarding the senses
By choosing to formulate a new beverage the researchers noted that the new product would need to be differentiated by improving the sensory characteristics
Four factors were identified for the formulation four colour intensities) three flavourings two label types (soft versus hard) and two pack sizes (standard versus oversize) By using both quantitative (hedonic testing) and qualitative (focus groups) approaches the researchers found that ldquothe main factors which drive consumer preference for this concept are colour intensity and flavouringrdquo Indeed colour intensity accounted for 43 per cent and flavour 32 per cent of the consumersrsquo overall liking ldquoPack size and label type are taken into account by the consumer to a lesser extendrdquo they added ldquoThis methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumersrsquo expectation it has now to be reproduced as every brand concept and product is a unique combination designed for a specific consumer grouprdquo concluded the researchers
Source Food Quality and PreferenceVolume 19 Issue 8 Pages 719-726By Stephen Daniells 07-Oct-2008
0
3- Taste or health A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits Data were analyzed 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 saltiness drinks flavor and greasiness These variables emerged as the first factor in the analysis suggesting 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 respondents attitudes toward fat in the diet Factor 3 comprised two remaining sensory attributes (color 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
Source-Beverly J Tepper and Amy C Trail Journal of Food Science and Technology 15 September 1998
Rural Consumer BehaviorConsumer Buyer Behavior refers to the buying behavior of final consumers ndash individuals and households who buy goods and services for personal consumption All of these final consumers combined make up the consumer market The consumer market in this case is Rural India About 70 of Indias population lives in rural areas There are more than 600000 villages in the country as against about 300 cities and 4600 towns Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use Villagers react differently to different products colors sizes etc in different parts of India Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India Thus it is important to study the thought process that goes into making a purchase decision so that marketers can reach this huge untapped segment
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approachesrdquo The study also demonstrates the importance of flavour and colour selection for new products
The global flavours market was been valued at some US$18bn in 2006 (Business Insights) Meanwhile the value of the international colourings market was estimated at around $115bn in 2007 (euro731m) up 25 per cent from $107bn (680m) in 2004 according to Leatherhead Food International (LFI) Natural colours now make up 31 per cent of the colourings market compared with 40 per cent for synthetics according to LFI
Bombarding the senses
By choosing to formulate a new beverage the researchers noted that the new product would need to be differentiated by improving the sensory characteristics
Four factors were identified for the formulation four colour intensities) three flavourings two label types (soft versus hard) and two pack sizes (standard versus oversize) By using both quantitative (hedonic testing) and qualitative (focus groups) approaches the researchers found that ldquothe main factors which drive consumer preference for this concept are colour intensity and flavouringrdquo Indeed colour intensity accounted for 43 per cent and flavour 32 per cent of the consumersrsquo overall liking ldquoPack size and label type are taken into account by the consumer to a lesser extendrdquo they added ldquoThis methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumersrsquo expectation it has now to be reproduced as every brand concept and product is a unique combination designed for a specific consumer grouprdquo concluded the researchers
Source Food Quality and PreferenceVolume 19 Issue 8 Pages 719-726By Stephen Daniells 07-Oct-2008
0
3- Taste or health A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits Data were analyzed 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 saltiness drinks flavor and greasiness These variables emerged as the first factor in the analysis suggesting 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 respondents attitudes toward fat in the diet Factor 3 comprised two remaining sensory attributes (color 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
Source-Beverly J Tepper and Amy C Trail Journal of Food Science and Technology 15 September 1998
Rural Consumer BehaviorConsumer Buyer Behavior refers to the buying behavior of final consumers ndash individuals and households who buy goods and services for personal consumption All of these final consumers combined make up the consumer market The consumer market in this case is Rural India About 70 of Indias population lives in rural areas There are more than 600000 villages in the country as against about 300 cities and 4600 towns Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use Villagers react differently to different products colors sizes etc in different parts of India Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India Thus it is important to study the thought process that goes into making a purchase decision so that marketers can reach this huge untapped segment
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
3- Taste or health A study on consumer acceptance of cola drinks
This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits Data were analyzed 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 saltiness drinks flavor and greasiness These variables emerged as the first factor in the analysis suggesting 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 respondents attitudes toward fat in the diet Factor 3 comprised two remaining sensory attributes (color 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
Source-Beverly J Tepper and Amy C Trail Journal of Food Science and Technology 15 September 1998
Rural Consumer BehaviorConsumer Buyer Behavior refers to the buying behavior of final consumers ndash individuals and households who buy goods and services for personal consumption All of these final consumers combined make up the consumer market The consumer market in this case is Rural India About 70 of Indias population lives in rural areas There are more than 600000 villages in the country as against about 300 cities and 4600 towns Consumers in this huge segment have displayed vast differences in their purchase decisions and the product use Villagers react differently to different products colors sizes etc in different parts of India Thus utmost care in terms of understanding consumer psyche needs to be taken while marketing products to rural India Thus it is important to study the thought process that goes into making a purchase decision so that marketers can reach this huge untapped segment
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
Factors influencing buying behaviorThe various factors that affect buying behavior of in rural India are
1 Environmental of the consumer - The environment or the Surroundings within which the consumer lives has a very strong Influence on the buyer behavior egs Electrification water Supply affects demand for durables
2 Geographic influences - The geographic location in which the rural consumer is located also speaks about the thought process of the consumer For instance villages in South India accept technology quicker than in other parts of India Thus HMT sells more winding watches in the north while they sell more quartz watches down south
3 Influence of occupation ndash The land owners and service clan buy More of Category II and Category III durables than agricultural Laborersfarmers
4 Place of purchase (60 prefer HAATS due to better quality Variety amp price) Companies need to assess the influence of retailers on both consumers at village shops and at haats
5 Creative use of product ex Godrej hair dye being used as a paint to color horns of oxen Washing machine being used for churning lassi The study of product end provides indicators to the company on the need for education and also for new product ideas
6 Brand preference and loyalty (80 of sale is branded items in 16 product categories)
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
Cultural factors influencing consumer behavior
Cultural factors exert the broadest and deepest influence on consumer Behavior The marketer needs to understand the role played by the Buyerrsquos culture Culture is the most basic element that shapes a Personrsquos wants and behavior In India there are so many different cultures which only goes on to make the marketers job tougher Some of the few cultural factors that influence buyer behavior are
1 Product (color size design shape) There are many examplesthat support this point For example the Tata Sumo which was launched in rural India in a white color was not well accepted But however when the same Sumo was re-launched as Spacious (a different name) and in a bright yellow color with a larger seating capacity and ability to transport good the acceptance was higher Another good example would be Philips audio systems Urban India looks at technology with the viewpoint of lsquothe smaller the betterrsquo However in rural India the viewpoint is totally opposite That is the main reason for the large acceptance of big audio systems Thus Philips makes audio systems which are big in size and get accepted in rural India by their sheer size
2 Social practices There are so many different cultures and each culture exhibits different social practices For example in a few villages they have common bath areasVillagers used to buy one Lifebuoy cake and cut it into smaller bars This helped lifebuoy to introduce smaller 75-gram soap bars which could be used individually
3 Decision-making by male head The male in Indian culture has always been given the designation of key decision maker For example the Mukhiyarsquos opinion (Head of the village) in most cases is shared with the rest of the village Even in a house the male head is the final decision maker In rural areas this trend isvery prominent
4 Changes in saving and investment patterns From gold land totractors VCRrsquos LCVrsquos
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
Rural Branding
It is the process of creating and disseminating the brand name so that it is instantly
understood by the customer It is different from branding in rural areas as there
people donrsquot understand English names of brands They rather associate the
product with the picture on the package Eg ldquoLaal sabun or red soap for lifebuoyrdquo
Creating an Identity ndash under this process an identity is created in the minds of the
customer Eg lsquoTATA Namak ndash Desh Ka Namakrsquo here what TATA has done is
they have given the salt a national image They have associated it with the country
and as a result rural consumers tend to connect with it and trust it more amp they also
remember it well Enhance Recognition ndash The brand should be recognizable to the
consumer and create top of the mind (TOM) consumer recall Eg Fevicol
lsquomajboot jodrsquo Building a brand Image ndash The brand should have a personality of its
own Eg Mahindra amp Mahindra has built its brand image in the tractor sector
Bhumiputra series of tractors Sarpanch series have done very well in the rural
areas Brand name has connected well with villagers
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
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 andor solve marketing research problem
On the basis of fundamental objectives of the research we can classify research
design into two general types
CONCLUSIVE RESEARCH
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
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 the varies with income age etc
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
SOURCES OF DATA COLLECTION
Research will be based on only one source ie Secondary data
SECONDARY DATA
Secondary data will consist of different literatures like books which are published
articles internet and websites
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
Findings
Following are the findings taken into consideration after the completing this
research study
An important finding that emerged out of the study was that 57of people like to have soft drinks while 43 go for juices (Economics Times 17th
march2009) Through the research it was conveyed that weekly consumption of soft
drinks is higher than the weekly consumption of juices
A majority of Indian consumers consume soft drinks and fruit juices at the
time of parties amp celebrations
Most of the consumers in rural India consume soft drinks because of its taste
and price
Most of the consumers consume fruit juices because it is healthy
As it is seen that canned Juices enjoys the largest market share though they
do contain some preservatives but majority of the consumers consider it
healthy
Most of the respondents (77) were of the strong view that advertisements
affect their purchases and the rest (23) were not at all affected by the
advertisements(httpwwwfoodindustryindiacom)
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
SUGGESTIONS
With the changing lifestyle people have started becoming more health
conscious Therefore the company should use more appropriate marketing
techniques to promote their fruit juice products like Mazza Minute maid
pulpy orange Slice Tropicana etc so that they can grab more market share
The study shows that partiescelebrations are the places where these drinks
are consumed mostly The companyrsquos must try to increase the sales by
creating and focusing on more utilities so that their product is used more
frequently
As it is seen that people consider canned juices to be healthy with
preservatives This shows that awareness level of the people is low and
needs to be corrected Therefore various methods like campaigns by
government help by media etc can be taken to change this
It has been observed that people prefer to have canned soft drink for
showing their styles but the price is slightly out of their reach (In rural
market) therefore it is suggested to the companies to reduce the price of
canned soft drink up to affordable level which is identified Rs 15
Companies should also use time to time some more and new attractive system of word of mouth advertisement to keep alive the general awareness in the rural market as a whole
Kids constitute the second largest segment of the soft drink market So more amp more fun based advertisement for the brands should be necessary Some life style based advertisement is also necessary
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
Conclusion
India is a primarily a rural country where more than 72 people resides in rural area where main occupation is agriculture Which is the bottom of the Indian economic system Earlier Indian farmers where known for their poorness and resurceless but now a days when government has their prime focuses in rural area backed by the huge planed expenditure to improve the rural economy of the country In the last 50 year Indian farmers has improved a lot their life style expenditure pattern income level taste and preferences has seen a sea change Many urban enmities are now a dayrsquos present in the rural area We can easily find the goods and services that were earlier present only in urban vicinity
Today economy is conformed to two major and far-reaching change from domestic to global and a change from the global to rural economy Both these changes are evolutionary Corporate sector has already realized the vast opportunity existing in the rural sector and are trying to harness these strategies specially aimed at rural markets
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-
0
Bibliography
wwwcocacolacom
wwwtheeconomictimescom
wwwmofpinicin
Food Quality and Preference Volume 19
Indian Journal Of Marketing
Journal of ims
wwwfoodindustryindiacom
wwwrediffcom
wwwgooglecom
- History of the Industry
- -journal of ims vol 5 no1 jan-june 2008
- 2-Colour and flavour rule consumer preferences Study
-
- The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages says a new study involving DANONE But packaging and labelling are not as important for winning over consumers according to findings published in the journal Food Quality and Preference The study involved consumers at different stages of development and highlights the importance of adopting a ldquosensory marketing approachrdquo said the researchers from French research organisation Adriant the University of Rennes 1 DANONE RampD and Institute Paul Bocuse
-
- Source Food Quality and Preference Volume 19 Issue 8 Pages 719-726 By Stephen Daniells 07-Oct-2008
-