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A Comparative Research Analysis of Consumer Behavior Between Coca-Cola and Pepsi”

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A Comparative Research Analysis of Consumer Behavior Between Coca-Cola and Pepsi” A COMPREHENSIVE PROJECT RESEARCH PROPOSAL ON “A comparative research analysis of consumer behavior between coca-cola and pepsi” Submitted to L.J. institute of engineering and technology IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In Gujarat Technological University UNDER THE GUIDANCE OF Faculty Guide Indra Meghrajani Submitted by Name Enrollment No. Foram Bhatt 117280592019 Tripti kumari Thakur 117280592050 Batch : 2011-13 1 MBA SEMESTER III/IV L.J.IET MBA PROGRAMME Affiliated to Gujarat Technological University Ahmedabad November, 2012 INSTITUTE’S CERTIFICATE “Certified that this Comprehensive Project Report Titled A comparative research analysis of consumer behavior between coca-cola and pepsi” ” is the bonafide work of Foram Bhatt (Enrollment No.117280592019) & Tripti kumari thakur (Enrollment No.117280592050), who carried out the research under my supervision. I also certify further, that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate. Prof.Indra meghrajani [Faculty: L.J.I.E.T.] 2 DECLARATION We hereby declare that the comprehensive project which is presented in this report entitled “A comparative research analysis of consumer behavior between coca-cola and pepsi” submitted for the degree of Master of Business Administration, is our original work and the project report has not formed the basis for the award of any diploma, degree, fellowship or similar other titles. It has not been submitted to any other university or institution for the award of any degree or diploma. 3 Place: AHMEDABAD Foram Bhatt Date: Tripti kumari Thakur (MBA) (MARKETING) 4 PREFACE India with a population of more than 1.22 billion is potentially one of the largest consumer markets in the world. With urbanization and development of economy, tastes and interests of the people changes according to the advance nation. Marketing is all about winning this new environment. It is about understanding what consumers want and supplying it more conveniently. Marketing deals with identifying and meeting human needs and social needs. One of the shortest definitions of marketing is “meeting needs profitably”. Soft drink is a typical consumer product purchased by individual primarily quench their thirst and also for refreshment. Different types of soft drinks are available in the market and more or less content of all soft drinks are same. The market of soft drink products is facing a cutthroat competition. The purpose of this research is to have in-depth awareness and understanding of consumer behavior tenets as one the major determinants of consumer preference when it comes to product imaging and impact. Thus, to provide readers with direct as well as first hand information of beverage choices and find out if Pepsi is dominated by Coca Cola or vice-versa as according to consumers/buyers perceptions and level of preference. You are welcomed with your valuable suggestions. Thanks and regards, Yours sincerely, Foram Bhatt Tripti kumari Thakur 5 ACKNOWLEDGEMENT We express our gratitude to the LJIET, Ahmedabad for giving us the opportunity to work on the major project during our final year of post graduate diploma in marketing and sales. We would like to thank Mr. Siddhartha Bist, Training & Placement Officer, L.J.I.M.S for giving us an opportunity to do this project. We would like to thank Mr. P. K. MEHTA our director of L.J.I.M.S for providing such an opportunity for undergoing a comprehensive project. We thank our humble project guide Prof. Indra Meghrajani for providing us guidance constantly throughout the project. We express our sincere thanks to all the college professors for helping us throughout the project by giving their valuable time and information. Foram Bhatt Tripti kumari Thakur 6 Table of contents Sr.no. Topic Name Page no. 1 Main page 1 2 Declaration 3 3 Preface 4 4 Acknowledgement 5 5 Executive summary 7 6 Introduction 9 7 History of coca-cola 14 8 History of pepsi 20 9 Cola war 28 10 Literature review 32 11 Research objectives 33 12 Research methodology 34 13 Data collection method 36 14 Biblography 38 7 EXECUTIVE SUMMARY This project is an extensive research on the consumer behavior of the two Cola giants Pepsi and Coca Cola. It will cover an extensive survey and depicts all graphs, fact and figures of two companies. It begins with the introduction of soft drink industry and introduction of these two companies of soft drink industry. The project has been made interesting with the inclusion of the topics, which covers the 4P‟s of marketing. The major players in the soft drink industry in India are Coca cola and Pepsi. Pepsi holds the major market share followed by Coke. They have a cut throat competition between themselves. Whatever strategy is followed by one company, it is copied by the other. One of the selected brands is NO.1 brand in their respective product categories the other one brand is close competitor of the No.1 brands. Total sample size of 150 respondents will be selected for convenience survey which includes consumers. Data will be collected from secondary as well as primary sources. Structure questionnaire will be used to collect primary data. 8 GENERAL INFORMATION 9 INTRODUCTION In the modern urban culture consumption of soft drinks particularly among younger generation has become very popular. Soft drinks in various flavors and tastes are widely patronized by urbane population at various occasions like dinner parties, marriages, social get together, functions, birthday calibration etc. children of all ages and groups are especially attracted by the mere mention of the word soft drinks. The so-called competition for this type of product in the market is from different other brands. Mass media, particularly the emergence of television, has contribute to a large extent of the ever growing demand for soft drinks the attractive jingles and sport make the large audience remember this product at all times. In any marketing situation, the behavioral / environmental variables relating to consumers, competition and environment are constantly influx. The competitors in a given industry may be making many tactical maneuvers in market all the time. They may introduce an aggressive promotion campaign or announce a price reduction. The marketing man of the firm has to meet all these maneuver and care of competitive position of his firm and his brand in the market. In today‟s highly competitive market place, three players have dominated the soft drink industry; The New York based Pepsi Company Inc. The Atlanta based coca- cola and U.K. based Cadbury Schweppes. Through the globe, these 3 major players have been battling it out for a bigger chunk of the ever –growing soft drink market. Now this battle has been evolved up to India too with the arrival of these three giant companies. 10 The Soft drink industry is on amazing growth; ultimately there is only one person who will determine their fortunes-The Indian consumer, the real War to quench his thirst has just begun. SOFT DRINK INDUSTRY: AN OVERVIEW It all began in 1886, when a tree legged brass kettle in Hohn Styth pemberton‟s backyard in Atlanta was brewing the first P of marketing legeent Unaware the pharmacist has given birth to a caramel colored syrup, which is now the chief ingredient of the world‟s favorite drink. The syrup combined with carbonated the soft drink market. It is estimated that this drink is served more than one thousand million times in a day. Equally oblivious to the historic value of his actions was Frank Ix. Robinson - his partner and a book keeper. Pemberton & Robinson laid the first foundation 11 of this beverage when an average nine drinks per day to begin with, upping volumes as sales grew. In 1894, this beverage got into bottle, courtesy a candy merchant from Mississippi. By the 1950‟s Colas was a daily consumption item, stored in house hold fridges. Soon were born other non- cola variants of this product like orange & Lemon. Now, the soft drink industry has been dominated by three major player – (1) The New York based Pepsi co. Inc.(2) The Atlanta based coca cola co. (3) The united Kingdom based Cadbury Schweppes. Though out the globe, these major players have been battling it out for a bigger chunk of the ever-growing cold drink market. Now this battle has begun in India too. India is now the part of cold drink war. Gone are days of Ramesh Chauhan, India‟s one time cola king and his bouts of pistol shooting. Expect now to hear the boon of cannons when the Coca Cola & Pepsi co. battles it out for, as the Jordon goes a bigger share of throat. By buying over local competition, the two American Cola giants have cleared up the arena and are packing all their power behind building the Indian franchisee of their globe girdling brands. The huge amount invested in fracture has never been seen before. Both players seen an enormous potential in his country where swigging a carbonated beverage is still considered a treat, virtually a luxury. Consequently, by world standards India‟s per capita consumption of cold drinks as going by survey results is rock bottom, less than over Neighbors Pakistan & Bangladesh, where it is four times as much. Now, at present as there are three major players coke, Pepsi and Cadbury and there is stiff competition between first two, both Pepsi and coke have started, sponsoring local events and staging frequent consumer promotion campaigns. As the mega event of this century has started, and the marketers are using this event – world cup football, cricket events and many more other events.
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