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Chapter – IV
Consumer Behaviour And Marketing
Strategies of Soft Drinks
Introduction
Consumer behavior is defined as the behavior that consumer
display in searching for purchasing using. Evaluating and disposing of
product and services that they expect will satisfy their needs. Consumer
behavior focuses on how individuals make decisions to spend their
available resources (time, effort, money) on consumption related items.
This includes what they buy. Why they buy it, when they buy it, where
they buy it, how often they buy it, how often they use it, how they value it
after the purchase and the impact of such evaluation on future and how
they dispose it. In another words, Consumer behavior can be define as the
behavior of individual in regards to acquiring, using and disposing of
products, services, ideas or experiences. Consumer behavior also includes
the acquisition and use of information. Thus, communication with
consumer and receiving feedback for them is a crucial part of consumer
behavior which is of great interest to marketers.
The soft-drink industry comprises companies that manufacture
nonalcoholic beverages and carbonated mineral waters or concentrates
and syrups for the manufacture of carbonated beverages. Soft drink
products have been well accepted by consumers and gradually overtaking
hot drinks as the biggest beverage sector in the world. In the midst of the
rapidly growing soft drink demand, the industry on the whole is
150
encountering new opportunities and challenges. Changing consumer
demands and preferences require new ways of maintaining current
customers and attracting new ones. A mid ever increasing competition,
beverage companies must intensely court customers, offer high quality
products, efficiently distribute them, ensure safety and keep prices low all
while staying nimble enough to exploit new markets by launching new
products. Recent developments in soft drink consumption and challenges
in marketing have heightened the need for searching the consumer’s
needs and preferences.
It is becoming increasingly difficult to ignore the existence of soft
drink in today’s market. Since the inception of soft drink in the 1830’s, its
consumption steadily increased with technological advances in
production and increased product availability. Recent statistics suggests
that despite India’s huge population and the fact that around 47% of the
population is composed of persons below 30 years of age, the per-capita
consumption of soft drinks in India remains very low at approximately at
5.2 liters which indicates huge potential for market of soft drinks in India.
Consumer Buying Preferences
Consumer preferences is used primarily to mean to select an option
that has the greatest anticipated value among a number of options by the
consumer in order to satisfy his needs or desires, Preferences indicate
choices among natural or more valued options available. The preferences
of the consumer are the result of their behavior they show during
searching, buying and disposing the products.
151
Consumer preferences are defined as the subjective (individual)
tastes, as measured by utility, of various bundles of goods. They permit
the consumer to rank these bundles of goods according to the levels of
utility they give the consumer. The preferences are independent of
income and prices. Ability to purchase goods does not determine a
consumer’s likes or dislikes. In other words, the consumer has different
preferences over the different combinations of goods defined by the set of
commodity bundles.
Consumer preferences are measured in terms of the level of
satisfaction the consumer obtains from consuming various combination of
goods. The consumer’s objective is to choose the goods which provide
the greatest level of satisfaction as the consumer define it. But constraints
are defined by the consumer’s income, and the prices the consumer pays
for the goods. Consumer value is measured in terms of the relative
utilities between goods and these reflect the consumer’s preferences.1
Brand Preference
Brand Preferences represent a fundamental step in understanding
consumer choices. A deeper understanding of such preference dynamics
can help marketing managers ‘better design marketing program and build
a long term relationship with consumers.’ Despite the existence of some
studies investigating how brand preferences is built and changed. Most of
them focus ion examining factors from consumer behavior perspective or
advertising perspective.
152
Customer satisfaction
Customer is always aiming to get maximum satisfaction from the
products or services that they buy. Winning in today’s market place
entails the need to build customer relationship and not just building the
products; building customer relationship means delivering superior value
over competitors to the target customer. Whether an organization
provides quality services or not will depend on the customer’s feedback
on the satisfaction they get from consuming the products. Since higher
levels of quality lead to higher levels of customer satisfaction.
Soft drinks
Soft drinks can be classified into major heads namely carbonated
and non-carbonated drinks on the basis of their composition. A soft drink
carbonated beverage is a non-alcoholic beverage that typically contains
water a sweetness, and a flavor of agent. The sweetness may be sugar,
high-fructose corn syrup or a sugar substitute (in the case of diet drinks)
for e.g. :- coca-cola, thumps Up, Mountain Dew, Sprite, 7Up, Mirinda,
Fanta, Limca. Whereas non-carbonated drinks can be further classified
into nectar and juices. Nectar is made from fruit or vegetables but with
25-99% juice content and usually with added sugar juice mostly contains
natural fruit or vegetables. It is prepared by mechanically squeezing or
macerating fresh fruits or vegetables. Juice is always 100% fruit juice for
example, saint juices, Real fruit and vegetables juices, Tropicana Juices
etc. to name a few.
153
The term “customer” it typically used to refer to someone who
regularly purchases from a particular store or company. Thus, a person
who shops we use shopping Mail or who uses Taxco gasoline is viewed
as a customer of these firms. The term “customer” more generally refers
to anyone engaging in any of the activities used in our definition of
customer behavior. Therefore, a customer is defined in terms of a specific
firm while a consumer is not. The traditional view point has been to
define consumers strictly in terms of economic goods and services. This
position holds to define consumer are potential purchasers of products
and services offered for sale. 2
Marketing strategies of Soft Drinks
Marketing strategy is conceptually very simple. It begins with
analysis of the target market which includes company, condition,
competitors and consumers. Next, market segmentation: This involves
identifying product-related need sets, grouping customers with similar
sets. Describing each group and selecting an attractive segment to serve.
The marketing mix includes the product, price, communication,
distribution, and services provided to the target market. The final stage
outcomes involve analysis of firm’s production position and customer
satisfaction resulting from implementation of the strategy. 3
154
Table No. 4.1
Consumer Behavior and Marketing Strategies of Pepsi Soft drinks
Sr.
No.
Products Quantity Colour Flavour
1. Pepsi 300 ml. 200ml. Brunt sugar Cola
2. Mirinda 300 ml. 200ml. Sun-set Orange
3. Mirinda 300 ml. 200ml. Tetrazine Lime
4. Mirinda 300 ml. 200ml. Tetrazine Mango
5. 7UP 300 ml. 200ml. Colorless Lemon
6. Mountain Dew 300 ml. 200ml. Colorless Lemon
7. Slice 300 ml. Sunset Mango
8. Lehar Soda 300 ml. Tetrazine Lemon
9. Pet 1.5 lt. Brunl sugar Cola
10. Pet 2 lt. Brunl sugar Cola
11. Can 330 ml. Brunl sugar Cola
12. Aquafina
(Mineral Water)
1 lt. Colorless White
Source:- PepsiCo Annual Report (2013-14)
According to the Table No. 4.1 it is clear that, the Importance of
Consumer behavior towards their preference to choice consumers are
preferred to Quantity, Colour, Flavour of soft drinks product.
Advertisement Effectiveness:
Advertising effectiveness pertains to how well a company’s
advertising accomplishes the intended. Small companies use many
different statistics or metrics to measure their advertising effectiveness.
These measurements can be used for all types of advertising, including
155
television, radio, direct mail, Internet and even billboard advertising. A
company’s advertising effectiveness usually increases over time with
many message or exposures. But certain advertising objectives can be
realized almost immediately.
Table No. 4.2
Advertisement Impact and Buying Behavior
Sr. No. Advertisement No. of Respondents Percentage
1. TV 585 58.5
2. Hoardings 65 6.5
3. Radio 35 3.5
4. Newspaper 90 9.0
5. Relatives / Friends 76 7.6
6. Others 154 15.4
Total 1000 100
Source:- Field Survey (2013-14)
From the Table No. 4.2 it is clear that , 58.5% respondents had
TV advertisement more effective for buying the soft drinks, Secondly,
15% respondents views other mix advertisement , and Third position
were, 9% respondents preferred to Newspaper advertisement ,
Followed by 8% respondents said that relatives / friends are effectives
for buying motives of soft drink , then 6.5% respondents view
Hoardings advt. impact and lastly 3.5% respondents view radio
advertising Impact was effective.
Finally, it is clear that 585 respondents preferred TV advertisement
Impact was effective for motivation of consumer to purchase the soft
drinks.
156
Brand awareness:
Brand awareness is a extent to which a brand is recognized by
potential customers, and is correctly associated with a particular products.
Expressed usually as a percentage of target market. Brand awareness is
the primary goal of advertising in the early months of years of a product’s
introduction.
Celebrity endorsement:
Celebrities are people who enjoy public recognition by a large
share of a certain group of people. Whereas attributes like attractiveness,
extraordinary lifestyle or special skills are just examples and specific
common characteristics cannot be observed. It can be said that within a
corresponding social group celebrities generally differ from the social
norm and enjoy a high degree of public awareness. Last but not least,
celebrities act as spokes people in advertising to promote products and
services. 4
Table No. 4.3
Consumer Buying Behavior of Soft drinks
Sr. No. Soft drink Respondents Percentage 1. Coca-Cola 254 25.4 2. Pepsi 252 25.5 3. Thums Up 312 31.2 4. Funta 25 2.5 5. Maaza 37 3.7 6. Slice 34 3.4 7. Mirinda 28 2.8 8. 7 UP 25 2.5 9. Sprite 19 1.9 10. Mountain Dew 14 1.4 Total 1000 100
Source:- Field survey 2013-14
157
From the above Table 4.3 it is clear that, 31% Respondents bought
Thums up, it is the highest preference of consumer behavior of soft drink.
Secondly the 25% Respondents Preferred Coca-Cola soft drink, Thirdly
25% respondents preferred to Pepsi and 3.7% respondents consumer
behavior preference was to Maaza, and 3.4% respondents behavior
preferred to Slice, 2.8% consumer gave preference to Mirinda, 2.5%
respondents liked to Fanta and 7UP (2.5%), 1.9% respondents liked
sprite, and lastly 1.4% respondents interested in Mountain Dew.
After the Analysis of data, it is found that the highest consumer
Preference is to Thumps UP 31.2% and followed by Coca-cola 25.4%
and Pepsi is 25.2%.
Table No. 4.4
Preference to Consumer Behavior of the Soft drinks
Sr. No. Soft drink Preference Percentage
1. Taste 258 25.8
2. Color 162 16.2
3. Price 198 19.8
4. Packaging 104 10.4
5. Sweetness 112 11.2
6. Flavor 107 10.7
7. Calories 22 2.2
8. Need 05 0.5
9. Fashion 10 1.0
10. Thirst 22 2.2
Total 1000 100
Source:- Field survey 2013-14
158
Table NO. 4.4 Indicating that , Preference to consumer behavior of
soft drinks is 25.8% The said respondents preferred to Taste , it is the
highest preference given by the consumers to the Taste. Secondly 19.8%
respondents Prefer to Price, and 16% respondents given Preference to
color, Fourthly11.2% respondents preferred to Sweetness of soft
drinks , where as 10.4% respondents preferred to Packaging ,
followed by 2.2% respondents preferred Calories and 1% respondents
preferred to Fashion , and lastly 0. 5 % respondents gave preference to
Needy.
25.8% Preference is given by the consumers to Taste 25.8%,
followed by 19.8% to price 19.8S and Colour 16.2%.
Soft Drink Industry In India
The 50-billion rupee soft drink is growing now at 6 to 71/2
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 125,000 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 Nepal’s) compared to Pakistan’s 17 bottles, Sri Lanka’s
159
21, Thailand’s 73, The Philippines 173 and Mexico 605. The industry
contributes over Rs 12 billion 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 million
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.
Around 400,000 tons of raw materials 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 products
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 categories aerated waters.5
160
Market of Soft Drinks in India
Today India is one of the most potential markets. With population
of around 900 million people, The Indian soft drinks market was only of
200 cases per year. This was very low even compared to Pakistan and
Philippines. Population and potential market are two major reasons for
major multinational companies of entering India. They feel that a huge
population coupled with low consumption can only lead to an increase in
the soft drinks in the scorching heat and the climate of India, Which is
suitable for high sale of soft drinks. All these factors together have
contributed to a 30% growth in the soft drinks industry. If the demand
continues growing at the same rate within two years the volume could
touch 1 billion cases. All these factors are the reasons for the entry two
giant of the soft drink industry of the world to enter the Indian market.
They share 96% of the soft drink market share. Rest is shared by
Cadbury’s Schweppes, Campa Cola and other soft drink brands. But was
the scene same 20 years ago? The answer is No. 1970 was the year of
pure soft drinks Campa Cola and Parle People (Thumps Up and Limca)6
Table No. 4.5
Market share of Coca-Cola and Other Soft drinks
Sr. No. Brand Market Share
1. Coca-Cola 25.9
2. PepsiCo Inc. 11.5
3. Nestle 3
4. Others 59.6
100
Source – Annual Report of Coca-Cola (2011)
According to the Table No. 4.5, Market share of Coca
25.9%, followed by the PepsiCo Inc. Market Share was 11.5%, and the
Nestle Company Market share was 3%, Market share of other companies
were 59.6%.
From the Table No. 4.5, it is clear that the Total Highest Market
Share of Coca-Cola was 25.9%, and othe
Mixed share of 59.6%.
Market Share of Coca
Soft drink companies, Based on Sales Value, 2011
The Statistic shows the global market share of the coca
company and other soft drink companies in 2011 ba
2011, the Coca-Cola company held a global market share of 25.9 percent.
The Coca-Cola company is a producer, retailer and marketer of no
alcoholic beverages and is well known for the soft drink Coca
0
10
20
30
40
50
60
Coca-Cola
25.9
161
According to the Table No. 4.5, Market share of Coca
25.9%, followed by the PepsiCo Inc. Market Share was 11.5%, and the
Nestle Company Market share was 3%, Market share of other companies
From the Table No. 4.5, it is clear that the Total Highest Market
Cola was 25.9%, and others Soft drink companies were
Mixed share of 59.6%.
Market Share of Coca-Cola Company and Other
Soft drink companies, Based on Sales Value, 2011
The Statistic shows the global market share of the coca
company and other soft drink companies in 2011 based on sales value, in
Cola company held a global market share of 25.9 percent.
Cola company is a producer, retailer and marketer of no
alcoholic beverages and is well known for the soft drink Coca
PepsiCo Inc. Nestle Others
11.53
59.6
Market Share
Market Share
According to the Table No. 4.5, Market share of Coca-Cola was
25.9%, followed by the PepsiCo Inc. Market Share was 11.5%, and the
Nestle Company Market share was 3%, Market share of other companies
From the Table No. 4.5, it is clear that the Total Highest Market
rs Soft drink companies were
Cola Company and Other
Soft drink companies, Based on Sales Value, 2011
The Statistic shows the global market share of the coca-cola
sed on sales value, in
Cola company held a global market share of 25.9 percent.
Cola company is a producer, retailer and marketer of no-
alcoholic beverages and is well known for the soft drink Coca-Cola. The
Market Share
162
company was founded in 1892 and is currently headquartered in Atlanta,
Georgia in the United Stated.
Comparison of Soft drinks
Soft drinks belong to the non-alcoholic beverage industry.
Depending on the region, they are also known as soda, or carbonated
beverages, and cover drinks containing water, sugar or a type of artificial
sweetener, and a flavoring agent. These fizzy drinks are mostly available
in regular and diet varieties.
Multinational companies competing in the soft drink market are
comprised of The Coca-Cola Company, PepsiCo Inc. and Dr. Pepper
Snapple, to name a few. In the beverage segment the coca-cola company
and PepsiCo have been better revels for ages. PepsiCo always has to face
the so called ‘Pepsi challenge’ as competing with coca-cola. The ‘Pepsi
Challenge’ originally took place as a taste test. Consumers were invited to
try beverages out of two blank cups-one containing Pepsi Cola and one
containing Coca-Cola. Consumers were then asked to evaluate the taste
of these two beverages and to decide which one they would prefer. The
blind tests let most Americans surprisingly learn that they would prefer
Pepsi Cola over Coca-Cola, based on exclusive taste.
PepsiCo, Inc. is based in Purchase, NY, United States and was
founded in 1965. Their beverage product portfolio comprises soft drinks.
bottled water, fruit juices, iced tea and ready-to-drink coffee beverages.
Pepsi-Cola, Mountain Dew, and Aquafina are some of their best selling
global brands.7
Place of Purchase of Soft Drinks
Sr. No. Place of
1. Super Market
2. Malls
3. Retail Shop
4. Hotels
Total
Source:
Table No. 4.6 found that, 72% respondents purchased soft drink
from super market, it is highest buying place. Secondly 12.9%
respondents purchased from malls , followed by 8.5% from retail shops
and lastly with 6.5% respondents purchased soft drinks from hotels .
Finally, it is found that the highest soft drink purchasin
super market that i.e. (72.1%).
0
200
400
600
800
1000
1200
Super
Market
721
72.1
163
Table No. 4.6
Place of Purchase of Soft Drinks
Place of Buying Respondents Percentage
Super Market 721 72.1
Malls 129 12.9
Retail Shop 85 8.5
Hotels 65 6.5
Total 1000 100
Source: - Field Survey (2013-14)
Table No. 4.6 found that, 72% respondents purchased soft drink
market, it is highest buying place. Secondly 12.9%
respondents purchased from malls , followed by 8.5% from retail shops
and lastly with 6.5% respondents purchased soft drinks from hotels .
Finally, it is found that the highest soft drink purchasin
super market that i.e. (72.1%).
Malls Retail
Shop
Hotels Total
129 85 65
1000
12.98.5 6.5
100
Percentage
Respondents
Percentage
72.1
12.9
8.5
6.5
100
Table No. 4.6 found that, 72% respondents purchased soft drink
market, it is highest buying place. Secondly 12.9%
respondents purchased from malls , followed by 8.5% from retail shops
and lastly with 6.5% respondents purchased soft drinks from hotels .
Finally, it is found that the highest soft drink purchasing place is
Percentage
Respondents
Buying Preferences of Soft Drinks
Sr. No. Way of consuming1. Quality 2. Colour3. Packaging4. Taste Total
Source :
The above Table Indicates that , 47% respondents were interested
to buy soft drinks with the quality , 43% respondents preferred to buy
the soft drink because of taste, 7% respondents Preferred to packaging
and 3% respondents preferred to colour of soft drinks
Finally, the preference of soft drink is to quality, 47% preference
given by the customers to Quality of soft drink for buying.
Following table presents information with respect to purchase of
common Stock of the Company which is being made during the three
Months given below-
0
Quality
Colour
Packaging
Taste
Total
30
70
430
3
7
Quality
Respondents 470
Percentage 47
164
Table No. 4.7
Buying Preferences of Soft Drinks
Way of consuming Respondents PercentageQuality 470 47.00Colour 30 3.0
Packaging 70 7.0Taste 430 43.00Total 1000 100
Source :- Field Survey (2013-14)
The above Table Indicates that , 47% respondents were interested
to buy soft drinks with the quality , 43% respondents preferred to buy
the soft drink because of taste, 7% respondents Preferred to packaging
respondents preferred to colour of soft drinks
Finally, the preference of soft drink is to quality, 47% preference
given by the customers to Quality of soft drink for buying.
Following table presents information with respect to purchase of
k of the Company which is being made during the three
500 1000 1500
470
430
1000
47
43
100
Quality ColourPackagin
gTaste Total
470 30 70 430 1000
3 7 43 100
Respondents
Percentage
Percentage 47.00 3.0 7.0
43.00 100
The above Table Indicates that , 47% respondents were interested
to buy soft drinks with the quality , 43% respondents preferred to buy
the soft drink because of taste, 7% respondents Preferred to packaging
Finally, the preference of soft drink is to quality, 47% preference
Following table presents information with respect to purchase of
k of the Company which is being made during the three
Respondents
Percentage
165
Table No. 4.8
PepsiCo and Share Price
Sr.
No.
Period Total No. of
Share
purchased
Average
price
paid per
share
Total No. of
share
purchased as
part of
Publicly
Announced
plan
Maximum
Number of
shares that may
yet be
purchased
under the
publicly plan
1. 28 Sept.13 to
25 Oct.13
3,881,786 $38.54 3,88,0000 443,183,612
2. 26 Oct .13 to
22 Nov.13
9,837,987 39.93 9,795,500 433,388,112
3. 23Nov.13 to
31 Dec.13
11,628,797 40.14 11,609,306 421,778,806
Total 25,348,570 $39.81 25,284,806
Source- Annual report of PepsiCo (2012)
PepsiCo purchased of common stock for the company average
price of the per shares and total No. of share purchased by publicly as per
the plan and yet to be purchased under the plan, this information with
figure given by the company.
According to the Table No. 4.8 , PepsiCo share was 3,881,786
($38.54) per share, for the period of 28 September 2013 to 25 October
.2013 , then 9,837,987 share purchased ($39.93) per shares, for the
period of 26 October 2013 to 22 November 2013 , lastly 11,628,797
shares purchased by PepsiCo ($40.14) per share for the period of
23November 2013 to 20 31 December 2013.
166
Table No. 4.9
Stock Keeping Unit (SKU) availabilities carbonated soft drink (CSD) on
the basis of flavor PepsiCo Products
Flavor Brands Total SKU No. of
Packs
% of
availabilities
Cola Pepsi 145 6 24.16%
Clear Lime 7UP. Mt.
dew
234 12 19.50%
Orange Mirinda 46 6 7.66%
Coca-Cola Products
Flavor Brands Total SKU No. of
Packs
% of
availabilities
Cola Coca-Cola
Thums - UP
237 12 19.75%
Clear Lime Sprite 1820 6 30.33%
Cloudy
Lime
Limca 35 6 5.83%
Orange Fanta 56 6 9.33%
Source:- Soft drinks Annual Report (2011-12)
As per the difference stock keeping unit (SKU) and availabilities
carbonated soft drink (CSD) Coca-Cola company stock availability is
more than PepsiCo. From the survey it is found that, stock keeping unit in
cola flavor of Coca-Cola product was more than PepsiCo product. But
Coca-Cola has two type of product in cola flavor which was coca-cola
and Thums-UP where as PepsiCo has only one product Pepsi.
167
Total SKU
Percentage of availabilities = ------------------------- 100
No. of Packs
Opportunities mean every outlet has at least one unit product of
each packs.
Percentage of opportunities = 100 – percentage of availabilities.
According to the above Table it is found that , cola flavor of
PepsiCo SKU was 145 and availabilities is 24.16% then 7up Mt. dew
234 SKU for that availabilities 19.50%. and Orange Mirinda SKU was
7.66%.
Whereas Coca-Cola and Thums up Cola Flavor SKU 237 Unit for
availabilities 19.75%. Cola flavor of PepsiCo and Sprite SKU was 1820
and Availabilities 30.33% Limca SKU 35 and CSD availability is 5.83%
and Fanta Orange Flavor SKU was 56 and availabilities 9.33%
opportunities 75.84%.
Table No. 4.10
Mineral Water Purchase and their Motto
Sr. No. Purpose No. of Respondents
Percentage
1. For Good Health
300 30.0
2. Safe Drinking 480 48.0 3. General water
is not hygienic water
70 7.0
4. Other 150 15.0 Total 1000 100
Source :- Field survey ( 2013 – 2014)
168
From the above table it is found that, there were 480 respondents
who bought Mineral drinking water for the purpose of safe drinking
(48%) , Followed by 300 respondents bought mineral water for the
purpose of good health (30%), 150 respondents purchase mineral
drinking water for other purpose(15%). And 70 respondents bought
mineral water for the drinking purpose that General water is not hygienic
water (7%).
Finally it is found that, Maximum respondents bought mineral
drinking water for the purpose of safe drinking. Some were bought
mineral drinking water for the purpose of Good Health.
Table No. 4.11
Use of Soft Drinks
Sr. No.
Opinion No. of Respondents
Percentage
1. Family Use 773 77.3 2. Personal Use 117 11.7 3. Guest 50 5.0 4. Parties &Others 60 6.0 Total 1000 100
Source:- Field Survey (2013-2014)
300480
70 150
1000
30
48
715
100
0
200
400
600
800
1000
1200
For Good
Health
Safe
Drinking
General
water is
not
hygienic
water
Other Total
Percentage
No. of Respondents
According to Table No.4.11 , 77% respondents
for Family use , followed by 11.7% respondents used soft drinks for
Personal Use , 6% respondents used soft drinks for parties & others,
and 5% respondents used soft drink for the purpose of Guest ..
Finally, 77.3% respondents
the highest more than Personal use of soft drinks (11.7%.).
Consumer Preference of Coca
Sr. No.
1. Coca
2. Thums Up
3.
4.
Source :
Family Use
Personal Use
Guest
Parties &Others
Total
12
34
169
According to Table No.4.11 , 77% respondents used soft drinks
for Family use , followed by 11.7% respondents used soft drinks for
Personal Use , 6% respondents used soft drinks for parties & others,
and 5% respondents used soft drink for the purpose of Guest ..
Finally, 77.3% respondents used soft drinks for family use that is
the highest more than Personal use of soft drinks (11.7%.).
Table No. 4.12
Consumer Preference of Coca-Cola soft drinks
Brands Respondents Percentage
Coca-Cola 371 37.1
Thums Up 113 11.3
7up 188 18.8
Pepsi 328 32.8
Total 1000 100
Source :- Field Survey (2013 – 2014)
0 200 400 600 800 1000
Family Use
Personal Use
Guest
Parties &Others
Total
773
117
50
60
1000
77.3
11.7
5
6
100
Percentage
No. of Respondents
used soft drinks
for Family use , followed by 11.7% respondents used soft drinks for
Personal Use , 6% respondents used soft drinks for parties & others,
and 5% respondents used soft drink for the purpose of Guest ..
used soft drinks for family use that is
Percentage
37.1
11.3
18.8
32.8
100
No. of Respondents
170
According to Table No. 4.12, it is clear that, 37.1% respondents
Preferred Coca-Cola soft drink. Followed by 11.3% respondents gave
preference to Pepsi, Thirdly 18.8% respondents gave preference to 7up,
and lastly 11.3% respondents preferred to Thums UP.
Finally, 37.1% of the respondents preferred to Coca-Cola and
32.8% respondents preferred to Pepsi soft drink.
Table No. 4.13
List of Brands and Attributes
Sr. No. Brands Attributes 1. Pepsi Cola Color 2. Coca-Cola Taste 3. Tab Carbonation 4. Fresca Price 5. 7 – Up Calories 6. Dr. Pepper Sweetness 7. Hires root beer Thirst Quenching 8. Hi- C, grape Linking of flavor 9. Hawaiian Punch After – taste 10. Orange Crush Packaging
Source: - Annual Report (2013-14)
371
113
188
328
37.1
11.3
18.8
32.8
0 100 200 300 400 500
Coca-Cola
Thums Up
7up
Pepsi
Respondents
Percentage
171
Table No. 4.13 explaining the attributes of various brands, like as
Pepsi-Cola for Color, Coca-Cola for taste, Tab for carbonation and
fresco for price, some like 7up for calories , Dr. Pepper for sweetness,
Hires root beer for Thirst Quenching, The next brand Hi-C, grape for
Linking of flavor, Hawaiian Punch for After – Taste and lastly Orange
crush for Packaging.
Table No. 4.14
Preferences to drink mineral drinking water.
Sr. No. Prefer to mineral water
Respondents Percentage
1. Bottle 418 41.8 2. Pouch 582 58.2 Total 1000 100
Source: - Field survey (2013-2014)
According to the Table No. 4.14, 58.2% respondents preferred to
drink mineral water in cold pouch, followed by 41.8% to bottled mineral
water.
418582
1000
41.8 58.2 1000
200
400
600
800
1000
1200
Bottle Pouch Total
1 2
Respondents
Percentage
Finally, 58% of the respondents were the highest numbers who
gave preference to Pouch mineral drinking water.
Which kind of soft drink consumers prefer to drinks?
Sr. No.
1. 2. 3.
Source:
Table No. 4.15 found that , 53.8% respondents liked to prefer
Cola based soft drinks , followed by 32.2% respondents
based soft drinks , where as 14% respondents Preferred milk based soft
drinks .
Above analysis shares that 53.8% Respondents Prefer Cola based
soft drinks were as 32% preferred Juice based soft drinks
86%
88%
90%
92%
94%
96%
98%
100%
Juic
e-b
ase
d
1
322
32.2
172
Finally, 58% of the respondents were the highest numbers who
gave preference to Pouch mineral drinking water.
Table No. 4.15
Which kind of soft drink consumers prefer to drinks?
Base Customer’s Preference
Percentage
Juice-based 322 32.2 Cola-based 538 53.8 Milk-Based 140 14.0 Total 1000 100
Source: - Field Survey (2013-2014)
Table No. 4.15 found that , 53.8% respondents liked to prefer
Cola based soft drinks , followed by 32.2% respondents preferred Juice
based soft drinks , where as 14% respondents Preferred milk based soft
Above analysis shares that 53.8% Respondents Prefer Cola based
soft drinks were as 32% preferred Juice based soft drinks
Co
la-b
ase
d
Milk
-Ba
sed
To
tal
23
538 1401000
53.8 14 100
Percentage
Customer’s Preference
Finally, 58% of the respondents were the highest numbers who
Which kind of soft drink consumers prefer to drinks?
Percentage
Table No. 4.15 found that , 53.8% respondents liked to prefer
preferred Juice
based soft drinks , where as 14% respondents Preferred milk based soft
Above analysis shares that 53.8% Respondents Prefer Cola based
Customer’s Preference
Frequently of
Sr.
No.
How Frequently
Taking Drink
1. Once a day
2. Twice a day
3. More than Twice
4. Not regular
drunker
Total
Source:
From the Table No. 4.16 it is clear that, 64.4% respondents were
not regular drunker , Followed by, 30.5% respondents drunk soft drink
Once a day , 3.5% respondents drink a soft drink Twice a day and
2.6% respondents more than twice .
Finally, 64.4% respondents were the highest consumer and Not
regular drunker, it is more than 30.5% those are drunk a soft drinks once
a day.
0
200
400
600
800
1000
1200
Once a
day
1
305
30.5
173
Table NO. 4.16
Frequently of Soft Drinks Purchase
How Frequently
Taking Drink
Respondents Percentage
Once a day 305 30.5
Twice a day 35 3.5
More than Twice 26 2.6
Not regular
drunker
644 64.4
Total 1000 100
Source: - Field Survey (2013-14)
the Table No. 4.16 it is clear that, 64.4% respondents were
not regular drunker , Followed by, 30.5% respondents drunk soft drink
Once a day , 3.5% respondents drink a soft drink Twice a day and
2.6% respondents more than twice .
4% respondents were the highest consumer and Not
regular drunker, it is more than 30.5% those are drunk a soft drinks once
Twice a
day
More
than
Twice
Not
regular
drunker
Total
2 3 4
35 26
644
1000
3.5 2.6
64.4
100
Percentage
Respondents
Percentage
the Table No. 4.16 it is clear that, 64.4% respondents were
not regular drunker , Followed by, 30.5% respondents drunk soft drink
Once a day , 3.5% respondents drink a soft drink Twice a day and
4% respondents were the highest consumer and Not
regular drunker, it is more than 30.5% those are drunk a soft drinks once
Percentage
Respondents
Age wise consumption of soft drinks
Sr. No.
Age of the respondents in year
1. 02 - 2. 06 – 3. 12- 194. 20-395. 40 - 596. 60 - above Total
Source: -
According to Table No. 4.17, Age wise consumption of
drinks, Male 20-39 age group was 28.3% , followed by 40
group was 25.8%, then 12
18.4%, then 60 years and above age group was 15.7%, and 6
group drinking soft drink was 9.2%, and las
was 2.6%.
The consumption of soft drink in female like as a young group of
12-19 was 29.7%. followed by 20
020406080
100120140160180200
02
-Ma
y
06
–1
1
1 2
2.6 9.215.3
174
Table NO. 4.17
Age wise consumption of soft drinks
Age of the respondents in year
Percentage Male
PercentageFemale
05 2.6 1.00 11 9.2 5.3 19 18.4 29.7 39 28.3 25.5 59 25.8 23.3 above 15.7 15.2
Total 100 100 - National Health Survey (2009 – 2010)
According to Table No. 4.17, Age wise consumption of
39 age group was 28.3% , followed by 40
group was 25.8%, then 12-19 age group consumption of soft drinks was
18.4%, then 60 years and above age group was 15.7%, and 6
group drinking soft drink was 9.2%, and lastly 2-5 age group of children
The consumption of soft drink in female like as a young group of
19 was 29.7%. followed by 20-39 age group , 25.5%, and 40
De
c-1
9
20
-39
40
-5
9
60
-a
bo
ve
To
tal
3 4 5 6
9.2 18.4 28.3 25.8 15.7
100
5.3
29.7 25.5 23.315.2
100
Percentage Female
Percentage Male
Percentage
According to Table No. 4.17, Age wise consumption of soft
39 age group was 28.3% , followed by 40-59 age
19 age group consumption of soft drinks was
18.4%, then 60 years and above age group was 15.7%, and 6-11 age
5 age group of children
The consumption of soft drink in female like as a young group of
39 age group , 25.5%, and 40-59 age
Percentage Female
Percentage Male
group was 23.3%, 60 and above age groups was 15.2%, and 6
was 5.3%, lastly 2-5 age groups girls were (1%).
Finally, according to above analysis of age wise consumption of
soft drinks highest consumption Male 20
12-19 group (25.5%).
Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Source:
0%10%20%30%40%50%60%70%80%90%
100%
Co
ca-C
ola
Pe
psi
1 2
26 15
175
group was 23.3%, 60 and above age groups was 15.2%, and 6
5 age groups girls were (1%).
Finally, according to above analysis of age wise consumption of
soft drinks highest consumption Male 20-39 group (28.3%) and Female
19 group (25.5%).
Table No.4.18
Market Share of Soft Drinks
Brands Market Share % Coca-Cola 26 Pepsi 15 Thums up 15 Mountain Dew 10 Dr. Pepper 9 Diet Pepsi 8 Sprite 8 Fanta 3 Mirinda 3 Slice 3 Total 100
Source: - Annual Report (2013-14)
Pe
psi
Th
um
s u
p
Mo
un
tain
De
w
Dr.
Pe
pp
er
Die
t P
ep
si
Sp
rite
Fa
nta
Mir
ind
a
Slice
To
tal
2 3 4 5 6 7 8 9 10
15 15 10 9 8 8 3 3 3 100
Market Share %
Market Share %
group was 23.3%, 60 and above age groups was 15.2%, and 6-11 age
Finally, according to above analysis of age wise consumption of
39 group (28.3%) and Female
Market Share %
176
Table No. 4.18 found that, Coca-Cola Soft drinks brand Market
Share is 26%, followed by Pepsi Market share 15%, Thums up 15%,
then Mountain dew share of market 10%, and then Dr. Pepper market
share 9%, Diet Pepsi 8%, Sprite market share 8%, and finally Fanta,
Mirinda ,and Slice market share is 3% respectively .
Finally, it is clear that Coca –Cola Market share is 26%, Pepsi and
Thums up market share is 15% respectively.
Coca-Cola and PepsiCo double-digit growth in July-September
After six quarters of back-to-back single digit volume growth, top
soft drinks makers coca-cola and PepsiCo have returned to double-digit
volume growth in the March, April, May and July-September quarter,
riding mainly on continued warm weather conditions in several parts of
India.
Industry officials however, remain cautious in their outlook for the
next couple of quarters, with the impact of the 5% excise duty increase on
new bottles announced in the Union budget kicking in from mid-
September.
The third quarter was supported primarily by an extended summer
and lesser rains. But we are not yet seeing it as a long term revival of the
industry. The exercise duty impact on new kicked in, and besides, the
truth quarter is lean season, “a top bottling partner of one of the cola
firms.
177
Summer months have a huge direct influence on industry sales,
contributing more than half of annual volumes. “Among key markets,
India delivered volume and value share gains with double-digit volume
growth, “Coca-Cola chairman and CEO Muhtar Kent said in an earnings
call late last week. “ Although weather was a benefit in India, it
negatively impacted the company’s performance. While Coca-Cola
declined to comment on the exact volume growth for India in the third
quarter, officials directly aware of the numbers say the maker of Thumps
Up and Sprite fizzy drinks has posted volume growth in the range of
13%-15% in the quarter.8
PepsiCo, which makes Pepsi cola, Tropicana juices and Kurkure
salty snacks, has also posted volume growth in the range of 15%, a top
official in direct knowledge of the development said. PepsiCo chairman
and CEO Indra Nooyi said in a third quarter earrings call that India along
with Egypt posted double-digit growth. “In developed markets, consumer
category demand continues to be sluggish.
In other key emerging markets, China, India and Brazil, even
though the political environments are relatively stable, GDP and
consumer spending growth remains mixed, “she had said.
Both firms have been investing ahead of the curve on higher
infrastructure and low prices, as their headquarters believe India is a key
growth bastion in a global environment which continues to see sluggish
sales across developed markets. Similar to most consumer goods firms,
the two beverages makers saw growth slowing down to single digits over
the past five-six quarters, due to overall slowdown in discretionary
spends as well as erratic weather conditions.8
178
Both Coca-Cola and PepsiCo have hiked prices of large packs 5%-
7% to offset the additional excise duty hike of 5% on aerated sugary
drinks. While prices of glass bottles and entry level packs of 200 ml and
300 ml have not been changed as the companies believe higher prices
could have a huge negative impact on sales, prices of fresh stocks of big
1.5 and 2 liter bottles have gone up starting test month.
“The actual impact of higher price could reflect in the next two
quarters,” said a beverage industry veteran, requesting not to be named.
Coca-Cola’s Kent had, in last week’s earnings call, said, “While we have
begun to see early signs of progress, we recognize that we need to
increase the scope and pace of change as we continues to face a
challenging macroeconomic environment,” globally, Coca-Cola reported
earnings below street expectations for the third quarter, with flat revenues
and global volumes growing 1%.8
Competitors of Coca-Cola In India
The Coca-Cola India is the country’s leading soft drink
manufacturer. But the company gets a tough competition through the
other global leaders as well as domestic companies. The leading
competitors of Coca-Cola in the country are PepsiCo. But beside PepsiCo
the other competitor of Coca-Cola in the country is PepsiCo Parle & Dr.
pepper Snappie Group which is establishing in India. Coca-Cola’s
product Thumps Up (India) gets a tough competition with the Pepsi.
179
The competition for Coca-Cola from PepsiCo is not so tough in the
Indian market, as the Thums-UP is becoming the generic name for Cola
in India. The huge demand for thumps up in the Indian Market is giving a
tough Competition to the Pepsi. The advertisement of the Thumps Up is
liked by many of the youngsters and the claim of Thumps Up is a mild
soft drink which is not as strong as Thumps up. The Coca-Cola’s brand
product Coca-Cola is not so much liked in the country and has a limited
market. So the company has started focusing on the Thumps Up so that
the companies market is maintained in the country. But the company is
trying its best to popularize market is maintained in the country,. But the
company is trying its best to popularize the coca-cola within Indian
market.9
Soft drink strategy
Pepsi is quit aggressive in approach to Indian consumer. They are
desperately working in the strategy to be winner side in the hot cola war
between two big barons. According to Pepsi philosophy it’s the madness
that encourages executive to thin to conjure up those creative tactics to
knock the fizz out of their competition. They have been pumped a large
amount on visibility of its blue-red-and white logo. They have been going
with aggressive marketing by putting Sachin Tendulkar and now
Shahrukh Khan in there advertisement to endorsees their brand. The role
models for its targeted consumer the teenagers. They have increase the
fizz in the market price by introducing the dispensers called fountain
Pepsi and been enjoying a lead over its rival three. 10
180
Advertising
Advertising is non-promotion of goods and services, by a sponsor
(a firm or person) who can be identified and who had paid for this
communication. This purpose of advertisement is to sell something a
good service, idea person or place, either now or later this goal, reached
by setting specific objective that can be expressed individual ads. Those
are incorporated into an advertising campaign recall again from the
buying decision process that buyers go through a series of stages from
unawareness to target customer to the stage in the stage in the hierarchy
say from awareness to internet.
Advertisement plays an important role in the success of Pepsi
product. Advertisement is a key of implementing a strategy over year old
to trigger desire as offer and in as many ways as possible.
Media of Promotional Strategies of Soft Drinks
All advertisement expenditure is incurred by PepsiCo India. but
only D.P. board, wall painting S.G.A.’s etc. company spends on it around
8.9% total sales company invested 305 crore in advertisement budget.11
Radio
T.V.
Hoardings
Road signs
Sticker
Neon light.
181
Table No. 4.19
Slogans for soft drinks Promotion and Marketing Strategy
Sr. No.
Soft Drinks Marketing Slogans % of Popular in Market and Recall
1. • Yehi Hai Right Choice Baby, Aha
96%
2. • Yeh Dil Mange More!
97%
3. • Pepsi Ye Pyaas Hai Badi
90%
4. • Yeh Hai Youngistaan Meri Jaan
95%
5. • My Pepsi My Way
82%
6. • Change The Game
77%
7. • Oh Yes Abhi
89%
8. • My Can
66%
9. • Chotta Matlab Panch
96%
10 • Coke Utha Le Dhoom Macha Le
94%
Source: Soft Drinks Annual Report (2013-2014)
According to Table No. 4.19 Clearing that, Promotion of soft drink
advertising Slogans are more effective for divert to consumers and
specially youngster, youth to purchase of soft drinks. From the above
table shown that they capture above 90% market to divert to consumer.
Slogans are converting the customers mind for buying the soft
drinks product. It is hammering again and again through advertising for
effect of customers and increased the sale.
182
Table No. 4.20
Soft Drink Industries Spend Market share for Advertising Media
Sr. No. Media Percentage 1. TV 38 2 Print 5 3. Radio 12 4. Internet 25 5. Mobile 20 Total 100
Source: - Annual Report (2013)
Sr. No. Media Percentage 1. TV 45 2 Print 19 3. Radio 10 4. Internet 22 5. Mobile 4 Total 100
Source:- Annual Report (2014)
From the above (Table No. 4.20 ) it is found that , Indian soft drink
Industries spend their share in media advertising as per the Annual
reports of soft drink, TV Advertising in 2013, 38% and 2014, 45% ,
Followed by Internet media is very popular in advertising . Soft drink
Industries Invested advertising market share in 2013-2014 , 25% and
22%, then Mobile advertising is also very popular and soft drink
industries invested their market share in 2013,2014 20% and 4%, then
Radio advertising also very popular in rural area in 2013,2014 12% and
10%, and lastly Print media advertising in 2013, 2014 is 5% and 19%
respectively .
183
Finally it is found that, soft drink Industries in India spent 38% and
45% in 2013 and 2014 on advertising. it is highest share spent on
advertising media after that Internet Media 25% and 22% respectively.
Table No. 4.21
Monthly Trend of Soft Drink Product Advertising during Jan – Dec. 2013
Sr. No. Month Percentage 1. January 6 2 February 13 3. March 18 4. April 20 5. May 13 6. June 5 7. July 4 8. August 5 9. September 6 10. October 3 11. November 3 12. December 3 Total 100
Source: - Adex India, a division of TMA Media research (2013)
Table No. 4.21, shows that monthly trend of advertising of 2013. In
the month of February, March April and May the Advertising increased
by 13%, 18%, 20%, and 13% respectively. Then in the month of January,
June, July, August & September. it increased normal 6%, 5%, 4%, 5%
and 6% respectively in the month of October ., November, December,
The Trend of advertising is very low, it means it was the slack season of
soft drink company.
Finally, February, March, April, May month are pick period of soft
drink advertising and the trend also increased.
184
Table No. 4.22
Most Attractive Factors in Advertisement
Sr. No. Factors Respondents Percentage
1. Picture 412 41.2
2 Symbol 250 25.0
3. Message 124 12.4
4. Slogan 214 21.4
Total 1000 100
Source: Field Survey (2013-14)
From the above Table (No. 4.22) it is found that, 412 respondents
preferred to most attractive factor in advertisement is picture (41.2%),
secondly 250 respondents preferred for symbol which is most attractive
factor (25%), followed by 214 respondents most attractive factor is
Slogan (21.4%), and 12.4% respondents were attracted through
Messages .
Finally, it is clear that 41.2% respondents preferred by most
attractive factor which is picture advertisement. It is the highest factor to
attract the consumer.
There is no doubt that the newspapers are the best and popular
medium for advertising. It reaches everywhere of the country. It is the
most powerful selling force. In India, there are many languages
Newspapers are being published in 91 languages. Different types of
newspapers are existing. They are National Dailies, Regional Dailies
Evening Dailies, and National Weeklies etc.
185
Table No. 4.23
Newspaper Advertisement
Sr. No. Particular Respondents Percentage 1. Never 435 43.5 2 Occasionally 440 44.0 3. Very often 115 11.5 4. Always 10 1.0 Total 1000
Source: Field Survey (2013-14)
According to the Table No. 4.23 it is clear that, 43.5%
respondents Never read the Newspaper advertisement, 44%
respondents Occasionally read the newspapers advertisement, followed
by 11.5% respondents very often read the newspaper advertisement ,
and lastly 10 respondents are Always read the Newspaper advertisement.
Table No. 4.24
Television Advertisement
Sr. No.
Particular Respondents Percentage
1. Never 120 12.0 2 Occasionally 165 16.5 3. Very often 194 19.4 4. Always 521 52.1 Total 1000 100
Source: Field Survey (2013-14)
According to Table No. 4.24 it is found that, 52% respondents
were Always watch the Television advertisement , Followed by 19%
respondents were Very Often watching the Television advertisement ,
16.5% respondents Occasionally watches the TV advertisement , and
12% respondents were Never watching the TV advertisement .
186
Finally, 52% respondent were highest watched Television
Advertisement.
Table No. 4.25
Internet Advertisement
Sr. No. Internet Respondents Percentage 1. Never 372 37.2 2 Occasionally 323 32.3 3. Very often 231 23.1 4. Always 74 7.4 Total 1000 100
Source: Field Survey (2013-14
Table No. 4.25 Found that, 37% of the respondents (372) Never
used Internet advertisement , followed by 32% respondents used
Internet Advertisement Occasionally , 23% respondents used Internet
advertising Very Often time , and lastly 7.4% respondents always used
Internet Advertisement .
The 37.2% highest respondents never used internet. After that
32.3% used occasionally. Only 7.4% people used always internet
advertisement.
Tools of Demand Creation
The term promotion means to push forward or to advance an idea
in such a way as to gain its approval and acceptance.
In business promotion has a narrower meaning. Promotion is tools
of marketing communication in order to move forward a product, a
service, or an idea in a channel of distribution promotion is used in
187
marketing to inform consumers (demand) of the availability and features
of products and services and to convince the consumers to purchase the
offering. Thus promotion is responsible for the creation of demand which
is one of the main functions of selling. All kinds of promotion can be
employed to create demand for products, to maintain their demand, and to
capture demand from competition. Price and promotion are the alternative
instrument for meeting competition and creation / maintenance of
consumer demand.
In any exchange activity, communication is absolutely necessary.
You may have the best product. It may have fair price. But people will
not buy your product, if they have never heard of it, and they are simply
unaware of its existence. The marketer, therefore must communicate to
his prospective buyers and provide them relevant information in a
persuasive language. People must know that the right product is available
at the right time, at the right place and at the right price. This is the work
of promotion in marketing.
Sales do not take place automatically without promotion or
persuasive marketing communication, even though our product is superb,
it can be in customer wants yet to be met, and we have at our disposal
proper channel of distribution . in essence promotion is the spark plug in
our marketing mix. It alone can provide aggressive method of selling. In
mass marketing mix it alone can provide aggressive methods of selling.
In mass marketing and mass distribution under keen competition,
promotion is the trump card of a marketer.
Promotion Objectives
Information
188
Persuasion
Reminder
Modifying Buyer
Promotion is the process of marketing communication involving
information distribution, persuasion and influence to help the sale of
goods or services. It has two basic purposes: 1. Persuasive
communication influencing the buyer behavior in favors of
purchase/repurchase. 2. Powerful tool of competition for aggressive
marketing.
Elements of Marketing promotion or strategy:-
There are five basic components of a promotion-mix
1. Personal selling.
2. Advertising
3. Packaging
4. Sales promotion and
5. Publicity and public relations.
Comments:-
1. Marketing mix is planned to achieve marketing objectives and
overall corporate objectives.
2. Entire marketing mix and all elements of promotion focus upon the
consumer-needs and wants of a specific market segment, called
target market. The inner circle ‘C’ stand for consumer.
3. All elements of promotion must be duly co-ordinate to ensure
united selling efforts for the creation of demand.
189
4. Promotion mix must be duly integrated with other elements of
marketing mix to ensure unity of action plan to create demand.
5. All marketing decision regarding the promotion mix and marketing
mix are made with the sole aim of consumer’s satisfaction the focal
point under the modern marketing concept.
Let us have a brief description of all the five elements of promotion.
1. Advertising: According to the American Marketing Association,
advertising may be defined as ‘…any paid form of non-personal
presentation and promotion of ideas, goods or services by an
identified sponsor’. It is non-personal as contrasted with personal
selling. It is paid by an identified sponsor as contrasted with
publicity. Advertising is impersonal (printed) salesmanship for
mass selling and a means of mass communication. In general for
low-cost mass-consumed goods, advertising is a good promotional
tool. For other types of products it is used as supporting means of
promotion.
2. Publicity: It is non-personal stimulation of demand for a product
or service or a business unit by placing commercially significant
news about it in a publication or obtaining favorable presentation
of it upon radio, television, or stage that is not paid for by the
sponsor.
3. Personal Selling: Personal selling is a unique type of promotion
presented on a personal basis. It is the most important type of
promotion. It is the best means of oral and face to face (direct)
communication and personal presentation with the prospect for the
purpose of making sales. It is the most effective (but most costly)
means of promotion for complex and expensive products. In selling
190
consumer durable goods and industrial goods it is a supreme form
of promotion.
4. Packaging: Packages is now considered as a powerful tool of
promotion. It is rightly called the ‘silent salesman’. in hardly a
minute or so , it can attract attention, create interest, arouse desire
by presenting a sales message and convince the buyer or prospect
to take purchase decision and action. Impulse selling is done by
packaging. In self-service retail stores or supermarkets, packaging
has replaced the counter salesman effectively. Package is also a
means of advertising.
5. Sales Promotion: Sales promotion covers those marketing
activities other than activities other than advertising, publicity and
personal selling , sales promotion offers aggressive methods of
selling or creating demand and these methods are supporting forms
of promotion Sales promotion supports and increases the
effectiveness of advertising and personal selling. We have sales
promotion to consumers, dealers and the companies own sales
force.
6. Public Relations: It is a form of promotion to create, develop and
maintain a bright public image of an organization in the
community so that the reputation or goodwill of the seller acts as a
good selling point to promote sale of goods under competition.
Under consumer-oriented marketing, publicity and public relations
constitute a part of promotion.
191
Six tools of promotion have definite role in all stages of the selling
process:
1. Advertising creates a favorable atmosphere for personal salesmanship
as the best supporting form of promotion. For low-cost mass-
consumption (convenience) goods, it is quite effective. It is the
cheapest form of mass communication.
2. Personal selling is much more effective for closing of sales and
securing orders. For industrial goods, for selling services like
insurance, for selling medical products, for selling costly consumer
durable goods, it works wonders when duly supported by advertising
and publicity.
3. Publicity is more effective for creating awareness in buyer’s buying
process. It can build up good corporate and product image. It assures
credibility and maintains good public relations with owners,
consumers, community, employees and government.
4. Packaging is the best form of promotion at the point of purchase. It
itself is the medium of advertising. Branding and packaging are
essential in mass markets.
5. All tools of sales promotion, or forms of supporting promotion act as a
bridge between personal selling and advertising, Sales promotion is
considered as aggressive selling or marketing as it can provide
additional powerful incentives for buyer’s action particularly at the
point of purchase, Free distribution of samples, window display,
coupon sales, offer of premium are the best examples of sales
promotion.
6. Public relations, i.e., good relations with consumers, employees,
government, shareholders and the community.
192
Consumer sales promotion:
These devices are as follows:
1. Sampling, usually called consumer sampling. Free samples are
given to consumers to introduce a new product or to expand the
market. The consumers can try to product.
2. Demonstrations or instructions educating the consumers in the
manner of using the products.
3. A coupon is a certificate that reduces price. When a buyer gives a
coupon to the dealer, he gets the product at a lower price (Regular
price is Rs. 20/- ; with a coupon it is Rs. 18/-) Coupon (same as
money) are accepted as cash by retailers.
4. Money-refund orders, i.e., full purchase price is refunded, if the
buyer is not satisfied, helping the introduction of a new product.
Refund offer creates additional interest and increases sales
considerably. It is a good device for creating new users and to
strengthen the brand loyalty.
5. Premium offers are temporary price reductions, which appeal to
bargain instinct, e.g., instant coffee sold in carafes by one company
was very successful. Towels, dinnerware, hair-brushes, key chains,
artificial flowers, ball pens, toilet soap, blades, were given as in
pack premiums. Attractive reusable jars costing separately Rs. 4/-
may be given at an extra charge of Rs. 2/- only. Liril gave a soap
box almost free with two toilet soaps.
6. Price-off e.g., Rs. 1/- off on a Brooke bond pack of 500 grams, the
price-off label is printed on the package. It gives a temporary
discount to the consumers.
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7. Fashion show and parades are good promotion aids or helps in
men’s and women’s sophisticated clothing’s.
8. Contests or sweepstakes for consumers help to stimulate consumer
interest in the product. In these contests, participants compete for
prizes on the basis of their skill or creative ideas. In sweepstakes,
they submit their names to be included in a drawing of prize
winners. This type of sales promotion is not a lottery because there
is a chance or luck, prizes are offered and a payment to participate
is there.
9. Trading stamps are given for purchasing in particular shop.
Table No.4.26
Sales promotions of Soft drinks
Sr. No. Sales Promotion’s Respondents Percentage 1. Sample 356 35.6 2. Demonstration 46 4.6 3. Coupon 144 14.4 4. Money-refund orders 121 12.1 5. Premium offers 51 5.1 6. Price-off 160 16.0 7. Fashion show 70 7.0 8. Contests or sweepstakes 42 4.2 9. Trading stamps 11 1.1 Total 1000 100
Source: - Field Survey (2013-14)
From the Table (No. 4.26) it is seen that, Sales promotion is the
most important factor of Marketing. Without sales promotions soft drink
companies cannot improve their sales. 356 respondents liked the
sampling promotion of soft drink companies(35.6%), Followed by 160
respondents preferred to Price-off sales promotion strategy (16%), then
144 respondents liked the coupon sales promotion strategy (14.4%),
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then 12.1% respondents preferred money-refund orders for sales
promotion strategies , and 5.1% respondents liked sales promotion , and
4.6% respondents preferred demonstration, 4.2% respondents liked
contests or sweepstakes , and lastly, 1.1% respondents like Trading
stamps .
Finally, Sample distribution sales promotion strategy is found more
popular and increase the sales promotion (35.5%) and then Coupon
(14.4%), then Price-off (16%) likes for the promotion of sales.
Table No.4.27
Sales performance of Soft drinks
Sr. No. Name of the Soft drinks
Average monthly sale
in Percentage
Average Annual
sale in %
Dealer
1. Pepsi 17 22 19 2. Thums up 15 16 14 3. Coca-Cola 13 15 15 4. Mirinda 11 8 8 5. Fanta 8 7 7 6. Slice 8 9 5 7. Sprite 9 8 3 8. 7up 10 7 4 9. Maaza 7 8 5 100 100 80
Source: - Field Survey (2013-14)
Table No. 4.27 showing that, Monthly and Annual sales
performance of soft drinks company from Marathwada region. as per the
survey of dealers and consumers here monthly sales of Pepsi soft drink
performance is of 17% , Annual average sales performance is 22% by
the 19 dealers sales view followed by 14 dealers sales performance of
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Thums up average monthly sales is 15% and Annual average sales is
16%, then 15 dealer sales view of Coca-Cola monthly average sales is
13% and annual average sale is 15%, then 8 dealers view Mirinda
monthly average sale is 11% and Annual average sale is 8%, and 7
dealer thought Fanta soft drinks monthly average sale is 8% and Annual
average sale was 7%, and then 5 dealers said that, Slice monthly
average sale is 8% and annual average sale is 9%, 3 dealers view for
Sprite is 9% and annual average sale is 8%, 4 dealer says that 7up
monthly average sale is 10% and annual average sale is 7%, 5 dealer
views that Maaza monthly average sale is 7% and annual average sale is
8%.
Finally it is clear that, Monthly sales performance of Pepsi is 17%
which is highest than others soft drinks , and Annual average sales
performance of Pepsi soft drinks is 22% it is quite highest than other
soft drinks
Table No.4.28
Income group and buying behavior of Soft drinks
Sr. No. Income Group No. of customers
Product preference
1. 1000 -5000 300 Pepsi, Mirinda, Thums up, Maza etc.
2. 5000 -10,000 400 Coca-Cola, Thums up, Fanta, Pepsi
3. 10,000 -15,000 120 Slice, Sprite Fanta, Mt.dew, coke
4. 15,000 – 20,000 075 7up, pepsi, Coke, slice 5. 20,000 – and
above 105 Pepsi, Thums up,
Coke Total 1000
Source: - Field Survey (2013-14)
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According to Table No. 4.28 , it is found that, the buying behavior
of different income group of soft drinks for 300 respondents were 1000-
5000 they said income group consumers who preferred product Pepsi,
Mirinda, Thums up, Maaza etc. and secondly, 5000-10000 income
groups, 400 respondents used Coca-Cola , Thums up, Fanta, Pepsi,
followed by 10000 – 15000 income group 120 respondents preferred
Slice, Sprite, Fanta, Mt. dew, coke and 15000 – 20000 income group’s
75 respondents liked 7up, Pepsi, Coke, Slice and lastly 20000 – and
above income group 105 respondents liked Pepsi, Thums up , Coke.
Dealer’s Strategic Sales Promotion:
These devices or helps are:
1. There is a provision of free display material ether at a point of
purchase (POP) or point of sale (POS), depending on one’s view-
point. Display reaches consumers when they are buying and
actually spending their money.
2. Retail demonstrators are supplied by manufacturers for preparing
and distributing the product as a retail sample, e.g., Nescafe instant
coffee to consumers for trying the sample on the spot or
demonstration regarding the method of using the product.
3. Trade deals are offered to encourage retailers to give additional
selling support to the product, e.g., to toothpaste sold with 30% to
40% margin.
4. Seller gives buying allowance of a certain amount of money for a
product bought.
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5. Buy-back allowance is given to encourage repurchase of a product
immediately after another trade deal. A buy-back is a resale
opportunity.
6. Push money (a special incentive, e.g., Rs. 10/- for selling one
pressure cooker) may be given to a retail salesman by a wholesaler
or manufacturer. It is a promotional allowance inducing the
salesman to push the sale of a particular brand of a product. It is a
device for adoption of aggressive selling. Customers are not aware
of such a push money deal. Strictly speaking it is not a fair trade
practice.
7. Seller gives free goods, e.g. one free with 11, or 2 free with 10 are
common free deals.
8. Advertising and display allowance may be given.
9. Sales contests of salesmen are held.
10. Dealer loader (a gift for an order) is a premium given to the retailer
for buying certain quantities of goods or premium for special
display done by a retailer.
11. Dealer and distributor training for salesmen, which may be
provided to give them a better knowledge of a product and how to
use it.
Reasons for sales promotion :
1. Introduction of a new product.
2. Stimulus for a new use of a product.
3. Encouragement for increasing frequency of purchase.
4. Appeal to a special area of the market.
5. Combination offer to encourage the use of other products.
6. Creation of a dealer interest and inducing thm to stock the articles.
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7. Securing shelf space in the retail window.
8. Counter balancing price competition .
9. Special training of salesmen.
10. Seasonal and grand reduction sales.
11. Capturing bargain hunting and non-brand conscious buyers through
bargain sales.
12. Acceleration to slow-selling lines.
Exhibition and Trade Fairs
An exhibition stand or stall is a form of showroom, but it is a very
distinctive form of showroom. It provides a temporary market place at
which buyers and sellers meet. There are various types of exhibitions,
international trade fairs, national and local fairs and exhibitions (usually
sponsored by a chamber of commerce or trade association). We may have
indoor or outdoor public exhibitions and fairs and shows, e.g.,
agricultural and industrial machinery and equipment, cottage industries
and handcrafts, fashion shows and parades, domestic electrical
appliances, office machines and appliances, etc.
An article shows at an exhibition at least makes a good impression
without creating actual demand. A man is greatly impressed with a
typewriter, time-clock or simple appliance. Its makes up his mind to buy
one sooner or later. Usually, people are in a buying mood when they visit
an exhibition.
A successful stand in an exhibition or a trade fair gives three
services to the owner: (1) It provides entirely new business which cannot
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be secured by any other method. (2) Buyers unwilling to meet salesmen
or visit the shop or showroom will, on their own account, do a lot of
purchases at these fairs or exhibitions. These buyers are usually resellers.
(3) Competitors compete with each other for getting maximum business.
The conservative buyer can compare the competitive lines displayed in
close distance to one criticism of their regular suppliers only at such
exhibitions. Thus, at exhibitions constructive buyers (resellers) can be
easily handled and captured by rival sellers.
In many trades, exhibitions are held annually at the same period of
the year. These exhibitions attract a large number of many sales
campaigns. Buyers purchase all their requirements, e.g., utensils,
furnishings, appliances, clothing’s, fittings, at these exhibitions.
Publicity
Publicity is also called marketing public relations. Publicity is not
paid for by the organization. Publicity comes from news reporters,
columnists and journalist’s people. It comes to the receiver as the truth
rather than as a commercial. Public relations and publicity taken together
becomes the fourth major ingredient of the firm. Every firm tries to create
good public relations so as to give good publicity.
Defective products, unfair trade practices, anti-social activities
often result in unfavorable publicity, consumer ill-will, bad product
image, increased consumer protests, government regulations and so on.
The firm having a poor public image will have lower sales and lower
profits. Reducing the impact of bad news is as important as creating good
publicity.
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Under the social marketing concept, publicity, and public relations
are assuming unique importance in the firms promotions mix.
Consumerism is altering consumer attitudes not only towards products,
but also toward the firm and dealers selling the products of the firm.
Public Relations: Public relations have now become an important
marketing function. The total process of building good will toward a
business enterprise and securing a bright public image of the company is
called public relations. It creates a favorable atmosphere for conducting
business. There are four groups of public; 1.customers. 2. Shareholders,
3.Employees, and 4. The community. The marketers should have the best
possible relations with these groups. Public relations complement
advertising by creating product and service credibility. Effective
marketing communication is not possible without establishing and
maintaining mutual understanding between the company and its
customers. The lubricant making the wheel of marketing run smoothly is
public relations. Bright image is created and maintained only by public
relations.11
Concluding Remark
Brand Preferences represent a fundamental step in understanding
consumer choices. Overall study of consumer behavior and preferences of
soft drinks product e.g. Coca-Cola, Thums UP, Pepsi, Mirinda, 7up,
Limca, Slice, & Soda etc. are used in Marathwada region. But the
Promotion of Product & Marketing strategies of soft drink is not more
effective. The advertising media TV, Newspaper, Messages, etc. are very
important for promotions of soft drinks sell. It is necessary to improve
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advertisement of soft drink product as well as improve social media of
advertisement.
Most of the consumers are used soft drinks at the time of meal,
dinner, and Bar restaurant in city area. Soft drink companies not entered
in rural area. Rural area local seller’s are made their Local drinks. Rural
consumer’s are like the local brand because that is easily available and
cost is also very less than coca-cola and Pepsi soft drinks.
As per the study of soft drinks retailer’s, dealer’s are not interested
to provide consumer facilities at home delivery, discount, gift scheme.
Indian customer’s are the price minded, so when consumer’s are used soft
drinks in Restaurant Bar the outlet’s and retailers are sell it in double
price. So the consumer’s are thinking negative about the soft drink
product.
In Marathwada region PepsiCo soft drinks provide good facility to
consumer. PepsiCo soft drinks consumption is increase in Marathwada
region. In the month of February, March, April, May pick period of soft
drinks advertising and so the trend for advertising are increased. TV
advertisement were highest changed the consumer behavior .After that
Internet and Newspapers Media popular in middle class consumer. But it
is not for illustrate person.
Most of the Consumer buying soft drink for Family use. In India
Coca-Cola and PepsiCo have a combined market share of around 95%
directly or through franchisees. The per capita consumption of soft drinks
in India is around 5 to 6 bottles.
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