cool drinks essay

Category: Food and drink,
Words: 3077 | Published: 12.27.19 | Views: 554 | Download now

Drinks

Soft drinks happen to be nonalcoholic water-based flavoured drinks that are also sweetened, acidulated and soft. Some carbonated soft drinks also contain caffeine; mainly the brown-coloured coca-cola drinks. ISSUE STATEMENT To learn consumers shopping for behaviour and also to identify breaks in the industry in the event that any. EXPLORATION OBJECTIVE To determine the elements affecting fizzy drinks buying pattern. To find out the consumers buying habits. Seasonal changes in the buying habits. To determine the card holder’s future requirements and contemplate an innovative item.

To study the overall Beverages industry. SOFT DRINKS MARKET ” AN OVERVIEW.

Global Scenario The global soft drink industry is highly concentrated, being largely controlled by the two multinational companies; Coca Cola and PepsiCo. Coca Cola leads the carbonated soft drink market in most countries in the world with 60% of the global cola market with its flagship Coca-Cola brand. Other notable players include Cadbury Schweppes. Indian Scenario In the booming soft drinks industry, multinationals seem to be the biggest winners in terms of market share.

The Coca-Cola Company led the highly consolidated market with a 42. 8% volume share, followed by PepsiCo at 28. 6% in 2004. Danone is a minor player in India with a 0.

5% share, chiefly due to its late market entry and limited offerings. According to government estimates soft drinks marketed in India were 6540 million bottles in March 2001. The market growth rate, which was around 2-3% in ’80s, increased to 5-6% in the early ’90s and is presently 7-8% per annum. Most of the sales of soft drinks take place during summers while just 5-6% of total sales take place in winters. In summers the high season lasts for 70-75 days, which contributes more than 50% of the total yearly sales. In terms of regional distribution cola drinks have main markets in metro cities and northern states of UP, Punjab, Haryana etc.

Orange flavoured drinks and sodas are popular in southern states. Western markets have preference towards mango-flavoured drinks. nonalcoholic beverage market can be divided into fruit drinks and soft drinks. Soft drinks available in glass bottles, aluminium cans, PET bottles or disposable containers can be divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are carbonated drinks and non-carbonated drinks include mango drinks. Soft drinks can also be divided into cola products and noncola products. Cola products in Indian include brands like Pepsi Cola, Diet Pepsi, Coca- Cola, Diet Coke, Thumps Up etc.

Cola drinks account for nearly 61-62% of the total soft drinks market in India. Non-Cola products account for 36% the total soft drink market. Until 1990s, domestic players like Parle Group (Thumps Up, Limca, Goldspot) dominated the softdrink market in India. However, with the advent of the MNC players like Pepsi (1991) and Coke (re-entered in 1993 after it was banned in 1977) in the early 1990s, the market control shifted towards them by the late 1990s. The per capita consumption of soft drinks in India is among the lowest in the world ” 5 bottles per annum compared to the 800 bottles per annum in the USA.

Delhi reports the highest per capita consumption in the country ” 50 bottles per annum. The consumption of PET bottles is more in the urban areas (75% of total PET bottle [plastic bottles] consumption) whereas the sales of 200ml bottles were higher in the rural areas. According to a survey, 91% of the soft drink consumption in India is in the lower, lower middle and upper middle class section. After a somewhat subdued performance in 2006 due to a recurrence of the pesticides controversy, soft drinks sales bounced back strongly to record double-digit volume growth in 2007.

With carbonates growth back on a positive upward curve alongside burgeoning sales of fruit/vegetable juice and bottles water, soft drinks showed impressive growth in 2007. Off-trade volumes grew slightly faster than on-trade volumes, driven by higher consumption of packaged and branded soft drinks at home and on the go. The emergence of supermarkets/hypermarkets, heavy consumer promotions and various new product launches played a key role in driving off-trade volume growth. Soft drinks sales in 2007 were propelled by bottled water and fruit/vegetable juice with their healthier positioning helping to drive sales of soft drinks.

While carbonates posted single-digit growth in 2007, rebounding from the pesticides controversy of 2006, it was bottled water and fruit/vegetable juice that stormed ahead with high double-digit growth rates. Poor municipal infrastructure for tap water has pushed sales of bulk packaged water to households. Fruit/vegetable juice is growing as a result of increased consumer expenditure on naturally healthy (NH) beverages. While functional drinks and RTD tea also posted impressive growth in 2007, they were growing from a very small base and are yet to achieve a critical mass in terms of establishing a loyal consumer base.

With consumers showing a growing preference for healthier soft drinks such as bottled water and fruit/vegetable juice rather than carbonates in 2007, the two carbonates giants suffered a marginal decline in share. Although both players embarked on a change in strategy to focus more on non-carbonated soft drinks in their portfolios, they were unable to maintain share and lost out slightly to home-grown players Parle Bisleri and Dabur India. Coca-Cola India launched Minute Maid and pushed the sales of its juices while PepsiCo India heavily promoted Tropicana, Aquafina and Gatorade during 2007.

In addition, Coca-Cola India and PepsiCo India embarked on re-branding themselves as total beverage players and not just carbonates players. With the retail scene in India undergoing a rapid metamorphosis with the establishment of supermarkets/ hypermarkets and convenience stores, soft drinks sales have benefited positively. People in urban areas are increasingly flocking to supermarkets to pick up speciality items that are not available in the kirana stores that are found all over India. Modern retail outlets have provided soft drinks players with many opportunities to push their brands.

Consumer promotions for fruit/vegetable juice and emerging sectors such as RTD tea and functional drinks are driving product sampling. Attractive point-of-sale (PoS) displays and gift packs of concentrates are also drawing consumer attention in supermarkets/hypermarkets. Heath drinks Soft drinks is expected to post a strong performance on the back of increasing affluence amongst consumers and evolving lifestyles which lead to consumers devoting less time to preparing fresh food and drink at home.

Competition from the unorganised sector will diminish gradually as consumers show greater aversion to buying unpackaged and unbranded soft drinks from street vendors due to health and hygiene concerns. Rising health consciousness is also expected to drive sales of naturally healthy (NH) soft drinks such as 100% juice and mineral water. In addition, soft drinks such as sports drinks and juice-based carbonates are also expected to fare well over the forecast period as consumers perceive them to be healthy. Softdrinks can be segmented on the basis of carbonation, flavor type or place of consumption.

Based on carbonation, soft drinks are principally classified into carbonated and non-carbonated drinks. While the carbonated drinks mainly include Cola, orange and lemon, the non-carbonated drinks include mango flavors. Cola products account for over 60% of the total soft drink market and include popular brands such as Coca-Cola, Pepsi, Thumps Up etc. noncola segment constitutes for over 35% of the market and can be divided into four sub groups based on types of available flavours that include ” *Orange: Popular brands include Fanta, Mirinda Orange etc. *Clear lime: 7Up, Sprite *Cloudy lime: Limca, Mirinda Lemon.

*Mango: Maaza, Slice Carbonates account for over 54% of total soft drinks sales in volume terms in India, with sales amounting to 2. 3 billion litres in 2004. CONSUMER’S PROFILE Soft drinks are impulse purchase products, and there is an element of indulgence associated with them. It does not figure very high on the shopping list. The consumer buys it just to while away time or as a substitute to water. Since, the older generation is of the opinion that nothing can substitute water, the companies generally target the youngsters, teenagers, children, employee of corporate offices.

As these products are general fun drink, brand loyalties are not strong for a particular brand and consumers look for novelty and new flavors. Soft drinks consumption heavily relies on seasons. Though consumers are becoming health conscious, fans of classic carbonated soft drinks (CSDs) still are on the large. SAMPLING DESIGN TARGET POPULATION Consumers are surveyed to know their preference. The respondents are between the age group of 15 to 40. All the respondents are residents of Mumbai city. SELECTING A SAMPLING TECHNIQUE The sampling was done on a random basis whereby the respondents visited and primary data is collected.

The Respondents were selected as per convenience sampling. RESEARCH DESIGN The research design was Exploratory in nature. Secondary Data and the Data from the Questionnaire were used to do the Analysis. This Exploratory research was done to give the insights about Consumers buying behaviour. The factors affecting their purchase of Soft- Drinks. DATA COLLECTION: The Primary data was collected through questionnaire administered to Consumers. The Secondary Data was collected through Internet, Business journals. The questionnaire was designed keeping the overall objectives and the information required.

The questionnaire administered to the Consumers was aimed at finding out their preference & factors affecting their purchase decision for Soft drinks and also to identify how these existing products can be improved according to the consumers. DATA ANALYSIS: Data Analysis is being done arranging the data in tabular forms and using graphical representations. The survey conducted and the related findings. How many bottles (consider 350 ml) of cold drinks do you consume? CONSUMPTION IN BOTTLES (350 ml) 1 in a week1 in 4 days1 in 2 days>1 in one day 25 %42%27%6% Analysis.

Customers proffered having cold beverages once within a week or 4 times. Regular consumers were few. Consumption improved during the summers. Consumption much more amongst teens and kids. Young pros also used cold beverages regularly mostly since it arrived complimentary to food items including pizzas or burgers. Additionally it is used by working professionals since lunch-time substitute for water. Will you generally follow brands? YES89% NO11% Analysis: It is viewed that, consumers are highly company conscious. The best brands have already been successful in creating loyalty towards many in the long run.

But , it is viewed that, the consumers are not really particular regarding one specific brand. So long as the brand is known to him/her, the product would be used. Also, the protection issues relating to beverages will be high. Consequently, unbranded drinks are not well-liked. Do you follow a particular company? YES27% NO73% Analysis: It is seen that consumers look for branded beverages, but not for a particular product as a result. As long as the item is from a well- known brand, it will be consumed. It is also found that, whenever a particular soft-drink isn’t obtainable, any other alternative works.

Consequently, switching brands is relatively convenient. Do you prefer ‘no fizz’ beverages (e. g. Slice, Maaza) or ‘strong fizz’ refreshments e. g. (Thumbs up or Pepsi)? Fizz LevelPercentage Strong Fizz16. 7% Lumination Fizz25% Not any Fizz58. 3% Analysis A very significant trend-shift towards no-carbonated drinks is observed. Previously, CSD (carbonated Very soft drinks) have been completely very popular. Lately this tendency has been changing. People at this point prefer ‘no fizz’ beverages. ‘Strong fizz’ i. electronic. cold beverages with high carbon concentration are running low in popularity. Essential are the subsequent Factors? Examination.

Most important factors as regarded as by buyers as per the review results, will be Brand, flavour and nutritional value. Shape of the bottle or perhaps packaging is the least significant criteria. Flavour is also key point. Data desk is given below: FactorsLeast ImportantSomewhat ImportantAverageImportantCriticalN/ARating Normal Color22. 2% 44. 4% 11. 1% 0. 0% 11. 1% 11. 1% 2 . twenty-five Flavour0. 0% 22. 2% 22. 2% 33. 3% 22. 2% 0. 0% 3. 56 Quantity0. 0% 16. 7% 50. 0% 33. 3% 0. 0% 0. 0% 3. seventeen Nutrition value0. 0% twenty. 0% 12. 0% 55. 0%20. 0% 0. 0% 3. seventy Shape of bottle42. 9%0. 0% 28. 6% 0. 0% 14. 3% 14. 3% 2 .

33 Packaging50. 0% 16. seven percent 0. 0% 0. 0% 0. 0% 33. 3% 1 . 25 Brand11. 1% 0. 0% 11. 1% 22. 2% 44. 4% 11. 1% 4. 00 Exclusivity0. 0% 16. 7% 16. seven percent 16. seven percent 0. 0% 50. 0% 3. 00 Would you like nutritious beverages over other folks? YES72% NO22% Analysis: Individuals are growing more health conscious as a result of changing trends, growing understanding levels, better education and standard of living. This kind of leads them towards more nutritional beverages. Consumers are today looking for cold-drinks that likewise satisfy other needs or perhaps provide added benefits along with being just a cold beverage, Do you like energy drinks even more? YES68% NO32% Analysis:

Strength drinks are very popular in the Indian markets with Reddish Bull being the prime gamer and a few other brands. The prices continue to be high taking into consideration the Indian marketplaces. Would you like a glucose activated packaged water to drink? YES79. 3% NO20. seven percent Analysis: Manufactured drinking water revenue have grown manifolds in the last decade due to poor hygiene and improper municipal care. Consumers seem keen on having a product that can present them added benefits with the grouped together drinking water, just like, glucose induced water. You prefer the classic CSD (carbonated very soft drinks) above anything else?

YES41% NO59% Evaluation There are a significant percentage of consumers who have solid preferences towards carbonated sodas. Most of these participants are male. Would you purchase a drink that comes in 3 variations based on its amount of ‘fizz’? YES79. 3% MAYBE23. 1% NO20. 7% Evaluation: In this issue, a conceptual product with 3 amounts of fizz was put up for the respondents. The audience responded quite favourably towards idea. Since there is a separate amongst consumers who favor strong fizz and the other folks who favor no fizz drinks, this sort of a product has a thumbs up by the customers.

Would you like to offer an additional merchandise (e. g. chips) like a packaged merchandise along with your chilly drinks? YES53. 8% MAYBE30. 8% NO15. 4% Analysis: Generally, customers have cool drinks along with wafers, chips or any kind of snack food. In this problem, the reaction of consumers is observed for how would they like it in case the companies can come up with a lot of offer exactly where in the snacks come up included with the soft drink. These snacks can be suitable best for the taste of the particular product along with which it could be supplied. REALIZATION AND RECCOMMENDATIONS:

The sodas market is an attractive industry with lot of scope for new entrants. Even if you will discover branded players since many years, trends will be shifting now towards unconventional products. New innovations with regards to flavour and nutritional value are most made welcome by the customers. Lifestyles happen to be changing and stress levels are high. This drives consumers to find added benefits with the conventional ‘colas’. Hence, today consumers favor cold beverages with all-natural fruit ingredients, flavoured milk or strength drinks. A specific dislike to carbonated drinks is seen especially amongst woman consumers.

In comparison with other carbonated drinks these dietary drinks are bit more expensive. Ways must be thought of to lower these rates and get them to more affordable. Also, there are simply mango flavoured, lemon flavoured or fruit flavoured drinks available in the no-fizz category. More flavors can be tried out. Brands will need to stress more on the nutritional value of the cold-drink and stipulate exactly how much of the daily nourishment will it provide them. A fresh product especially for females could possibly be come up with. APPENDIX Cold drinks 1 . Arrears Section 1 )

How many bottles (consider 350 ml) of cold drinks do you really consume? How many wine bottles (consider 350 ml) of cold drinks do you ingest? one in a week one in 4 days one in 2 days and nights one in every day more than 1 bottle in one day Other (please specify) installment payments on your Do you generally stick to 1 brand or perhaps easily move brands? Do you generally stay with one manufacturer or very easily switch brands? Yes Not any Maybe several. Do you prefer ‘no fizz’ beverages (e. g. Slice, Maaza) or ‘strong fizz’ beverages like Like this comment or Pepsi?

Do you prefer ‘no fizz’ refreshments (e. g. Slice, Maaza) or ‘strong fizz’ drinks like Like this comment or Pepsi? no fizz light fizz strong fizz Other (please specify) four. Please select according on your preference (5 being the highest) Least ImportantSomewhat ImportantAverageImportantCriticalN/A Color Please select in accordance to your inclination (5 staying the highest)

Color Least Important To some extent Important Typical Important Critical N/A Taste Flavour Least Important Somewhat Important Average Important Important N/A Volume Quantity Least Important Somewhat Important Normal Important Important N/A Nutrition value Nourishment value Least Important Relatively Important Average Important Critical N/A.

Shape of bottle Shape of bottle Least Important Somewhat Important Average Important Crucial N/A Product packaging Packaging Least Important To some degree Important Average Important Essential N/A Brand Brand Least Important Somewhat Important Typical Important Critical N/A Uniqueness Exclusivity Least Important Somewhat Important Typical Important Essential N/A your five. Would you like your cold drink bottle to come in varied sizes so that it can be accomodated anywhere? Do you need your frosty drink bottle to appear in varied sizes so that it may be accomodated anywhere? Yes Simply no Maybe.

Additional (please specify) 6. Will you buy a glass or two that comes in 3 different versions depending on the level of ‘fizz’? Would you buy a drink that comes in a few variations based on its amount of ‘fizz’? Certainly No Probably 7. Will you prefer your cold beverage bottles aid the fizz for several times after starting the jar?

Would you favor your cold drink wine bottles to preserve the fizz for a few days following opening the bottle? Yes No Could be 8. Do you wish to have an extra product (e. g chips) as a packaged product together with your cold refreshments? Would you like to have an additional product (e. g chips) like a packaged product along with your chilly drinks? Certainly No Could be 9.

Do you want to buy chilly drinks, in the event you will get some promotional present along with your chilly drinks? Do you want to buy chilly drinks, should you will get some promotional offer along with your frosty drinks?

Yes No Probably 10. Male or female? Gender? Men Female.

BIBLIOGRAPHY http://resources. bnet. com/index. php? http://www. agriculture-industry-india. com/agricultural-commodities/soft-drinks. html code http://www. foodindustryindia. com http://www. euromonitor. com http://www. icmrindia. org.

1

< Prev post Next post >