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CONTENTS
Page no
CHAPTER-I 03
INTRODUCTION
Research methodology
CHAPTER-II 11
COMPANY PROFILE
CHAPTER-III 22
CHAPTER-IV 42
DATA ANALYSIS
CHAPTER-V 53
FINDINGS
CONCLUSIONS
SUGGESTIONS
QUESTIONNARE
BIBLIOGRAPHY
2
CHAPTER-I
INTRODUCTION
3
INTRODUCTION
have been coming forward to invest in India and tapping perhaps and world's
biggest growing market. As the floodgates have been opened up for Multinational
Companies, the global giant Coca-cola also decided to make an entry into the
Indian market. In India, the per capita consumption of soft drinks is at rock bottom
level even less than our neighboring countries Pakistan and Bangladesh, where it
The last summer was particularly sweltering one, with temperatures hitting the
high 40's in some places yet; bottles were disappearing from shelves faster than
they could be replaced. In the peak season, they found themselves short of
capacity and having to turn around their trucks faster and faster to slake the
With growth rates zooming into the double digits, bottlers have been propelled
into expanding capacities. With their big-time plans, the multinationals have
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These arc ambitious targets and to reach them the cola makers will have to build
capacity, infrastructure, make their bottlers more available and more affordable.
There are 5. 00,000 retailers stocking soft drinks in India. Also, soft drinks which
retail at any where between Rs.9.00 and Rs.12.00 are expensive when measured
As they concoct their strategies, keeping an eye on each other all the time,
ultimately there's only one guy they have to watch out for, who will determine
their fortunes: the consumer. The real race to quench his thirst has just begun
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Objectives of the study
consumers?
6
Research methodology
Data will be collected from a sample size 1000 and distributed over
consists of
1. Demographic Segmentation
2. Sociocultural Segmentation
3. Use-Related Segmentation
4. Use-Situation Segmentation
Analysis
PERIOD OF THE STUDY: The period of the study is past one year
7
Scope of the study
The new economic policies of the Govt. of India adopted in the mid eighties were
given further impetus by the early nineties. The Indian market has undergone
Keeping the above - mentioned perspective in the background, the researcher has
selected soft drink market, since the marketing task his became more challenging
introducing differentiated products to improve their market share. The soft drink
Soft drinks include ail types of non - alcohol carbonated flavored or otherwise
sweetened beverages. The entry of Pepsi and the reentry of Coca - Cola in the
India market arc inevitably facing stiff competition but the ultimate winner is
consumers towards different brands of soft drinks and to gauge out the
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promotional strategic being adopted by the marketers to lure promiscuous buyers
The cola wars are intensifying and bringing manifold changes in the soft drink
responses to study the perception of the consumers. Now the people with changing
life styles and increase in income levels have made the soft drink a common man
drink.
Liven through the existing system of marketing of soft drink has not tapped such a
big market in the interiors of the country specially the rural areas, as marketing in
Despite the soft drink industry is growing at a very healthy pace and stands at 18%
per annum. The market for cool drinks comprises of adults in the 35 years age
group who are largest consumers of the soft drink in the country followed by
young adults in the age group of 15-25 years and children in the age group of 6-
14 years hence, companies must develop their product and marketing slraleiues to
2. The study made use of both the primary and secondary sources of information.
The accuracy and authenticity of statistics depends of the accuracy of the second
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source itself. Therefore, the limitation of the secondary source is also bound to be
3. In spite of all the care taken to translate the feelings and opinions of the
respondents, the errors might creep into the study, may be because of the reason
4. Due to lack of time and finances, the sample size is confined to hundred only. The
implications are bound to be present in the findings. Hence, the findings cannot be
10
CHAPTER-II
COMPANY PROFILE
11
COMPANY PROFILE
Soft drinks are typical and necessary consumer products, which are generally
consumed by the individuals to quench the thirst and for a good flavour, and it is
The two main reasons, which classify the soft drinks under consumer products, are
their easy availability and their reasonable high degree standardization. Among the
listed consumer goods (i.e., perishable items) soft drinks is considered non-
Soft drinks can be classified into two broad categories- carbonated drinks and non-
Cola, leman and orange are carbonated drinks while mango drinks come under
non-carbonated category.
taste in such drinks. The basic constituents of soft drinks are water, sweeteners,
acidulates, flavorings, colorings, foaming agents and preservatives. The soft drink
market is dominated by a few brands. Coca Cola and Pepsi products for example.
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Soft drink industry in India has witnessed phenomenal growth in the recent past,
particularly after the exit of Coca-Cola. The exit of Coca-Cola from India during
the late seventies gave a bolter scope to several Indian soft drink companies to
grow. These were a rapid growth in this industry but each one aggressively
competed with one another to capture a major share in the market. The
The perishable items like soft drinks need a lot of advertisement, as they are not
necessary for the consumer. Most of the consumer consume just for fun &
refreshment purpose and not and for nay other special reason.
For that reason the soft drink marketers concentrate more on the advertisement
part and they keep on designing new advertisements, which conquer the heart of
the consumer. They take special care in casting the popular figures. These soft
and so on.
These soft drink companies will sponsor for many of the sport events in order to
have good edge over the competitor as per as the publicity is considered.
The entry of carbonated soil drink into the Indian soil is relatively new. The credit
for introducing branded soil drink goes to pure drinks private Ltd, Delhi. Later this
Accordingly, in 1950, Coca - Cola made its first debut in the Indian market. This
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is the story about the origin of soft drinks in India. After Coca — Cola, Pepsi
entered into the market. The exit of Pepsi made coke the undisputed leader in the
soft drinks market. This company too was forced to leave India due to its non
compliance with the rules and regulations of the Government in 1977. The exit of
coke becomes a boom to national manufactures and all the players started
increasing their business. Among the many national players like pure drinks Me
Dowels, Modem foods, Spencer's and parley, Parle emerged as the leader in the
Indian soft drink market. It is believed that by the end of 1989. Parle captured
In 1990. Pepsi rccntcrcd India and started making more noise in the market. All
the same, it grabbed considerable market share from parley. Besides this. Coke
also reentered India after 16 years of exile, fearing that, it cannot cling to its
market leadership. Parle sold itself to Coca Cola for $40 Million November,
1993.
By buying over local competition the two American Cola giant share cleared up
the arena and are packing all their power behind building the Indian franchise of
their global girdling brands. If Pepsi invests Rs. 300 core, Coke will be investing
more than that and vice versa. The total investment is of a size and scale that the
Rs. 3048 cork soft drink businesses have never seen before.
Both players see enormous potential in this country. Where swigging a carbonated
standards India's per capita consumption of three servings is rock bottom less even
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than over neighbors Pakistan and Bangladesh. Where is four times as much so, the
cola giants feel that per caps can only go up and up. As incomes improve so do life
styles a pattern they have seen in many of the 195 countries they sell their
universal products.
It was 1886 in NEW YORK harbor, workers are constructing the statue of the
liberty. 800 miles away another great symbol was about to be unveiled.
Like many people who change the history, JOHAN PEMBHRTON, a civil war
tinkering with medicinal formulas, and one afternoon, searching for a quick cure
for head aches, his stipend up a fragrant Carmel colored liquid in a three legged
pot. When it was done, he carried it a few doors down to Jacob's pharmacy.
I Icrc. the mixture was combined with carbonated water and sampled by customers
who all agreed this new drink was something special. So Jacob's pharmacy put it
on sale for five cents a glass. PEMBERTON'S book keeper FRANK ROBINSON
named the mixture COCA - COLA and wrote it out in his distinct script. To this
In this first year the company sold about 9 glasses of coca cola a day. A century
later the coca-cola company has produced over ten billion gallons of syrup.
had no idea that the had invented one of the greatest products of the world. Over
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the course of 3 years 1881 - 1891. Pemberton sold the company to Atlanta
businessman Asa Griggs Candlcr for the total of about $ 2300. Candlcr would
become the company's first president and the first to bring real vision to the
a business. Lie knew there were thirsty people out there and Candler found
brilliant and innovative ways to introduce them to this exciting new refreshment.
He gave away coupons for complimentary first tastes of Coca — Cola brand.
People saw ('oca - Cola every where and the aggressive promotion worked. By
1895, Candler had built syrup plants in Chicago, Dallas and Los Angeles.
Inevitably, the soda's popularity led to a demand for it to be enjoyed in new ways.
put the drink in bottles. He sent of them to Candler, who responded without
then that the heart of Coca- Cola would be with portable, bottled beverage
customers could take anywhere. He still didn't realize it five years later when in
secured exclusive rights from him to bottle and sell the beverage lor the sum of
one dollar.
SAFEGAURD1NG THEBKANOfl905-1918) :
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Imitation may be the sincerest of flattery, but the Coca - Cola Company
was none too pleased about the proliferation of copycat beverages taking the
advantage of its success. This was great brand. Both needed to be protected.
"demand the genuine'' and "accept no substitute". The company also created a
distinct bottle shape to assure people they were actually getting a real Coca -Cola.
In 1916, the Root glass company of Treat, Indiana began manufacturing the
famous contour bottle. The counter bottle for its attractive appearance, original
design and the fact that, even in the drink, you could identify the genuine article.
As the country roared into the new century, the Coca Cola Company grew
rapidly moving into Cuba. Puerto Rico, France and other countries. In 1900 there
were two bottles of Coca Cola, by 1920, there would be about 1000.
Perhaps no person has more impact on the Coca - Cola company the Robert
Woodruff In 1923, five years after his father Ernest purchased the company from
Asa Candler, Woodruff become the company president. While Candler had
introduced the U.S. Coca - Cola, he would nearly spend 60 years as company
Woodruff was marketing genius who saw opportunities for expansion every where
the captivated foreign markets with his innovative campaigns. Coca Cola traveled
with the U.S. team to the 1928 Amsterdam Olympics to the logo was emblazed on
racing dog sleds in Canada & the walls of bull fighting arenas in Spain. He pushed
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development & distribution of the six-pack, the open top cooler and all
innovations that made it easier for people to drink Coca Cola. When it became
clear to the company that housewives would be more inclined top buy six-packs
they could open easily at home, women were sent door to door, installing branded
Coca Cola openers, this is exactly the kind of "out side the box'" thinking that
thrived under Woodruffs leadership and it made Coca Cola not just a huge
In 1941 America entered into World War II thousands of men & women were sent
overseas. The country & Coca - Cola rallied behind them. Woodruff ordered that
every man in uniform gets a bottle of Coca - Cola for 5 cents, wherever he is,
whatever it cost the company 1943, General Dwight D.Eisenhower sent urgent
During the war many Europeans enjoyed their first taste of beverage and when
peace finally came, Coca - Cola be placed within ''arm's reach desire'", was
coming true from the rnidf-40's until 1960, the number of countries with bottling
Post war America alive with optimism & prosperity. Coca - Cola was a part of
fun, carefree America lifestyle & the imagery of its advantage happy couples at
the drive in, carefree moms driving are yellow convertibles is a wonderful
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After 75 years of amazing success with brand Coca - Cola, the company
decided to expand with new flavors sprite in 1961, TAB in 1963 and Fresco in
1966. The company's presence worldwide was growing rapidly year after year,
Coca Cola found a home in more & more places. Cambodia, Montserrat, Puce,
Turkey &. more advertising for Coca - Cola always an important & exciting part
of its business really came into its own in the 70's and reflects a brand totally in
tune with fun, playfulness and freedom. The international appeal of Coca- Cola
was embodied buy 1971 commercial, where a group of young people from all over
the world gathered on a hill top in Italy to sing "I'd like to buy the world a coke".
In 1978, the ('oca Cola Company was selected as the only company allowed
The 80's the era of legwarmers, head bands and the fitness craze and a time of
much change and innovation at the Coca - Cola Company. In 1981. Roberto C.
Goizucta became chairman of the board of directors & CEO of the Coca- Cola
company with a strategy he called "intelligent risk taking" among his bold moves
was organizing the numerous U.S. bottling operations into a new public company,
Coca Cola enterprises, Inc. he also released diet coke, the very first extension of
the Coca Cola trade mark within two years, it had become top low calorie drink
in the world, second in success only to Coca Cola. One of Goi/ueta's other
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incentives in 1985, was the release of new taste for Coca Cola, the first change
In the real world they had a deep emotional attachment to the original and they had
a deep emotional attachment to the original and they bagged and pleaded to get it
back. Critics called it the biggest marketing blunder ever. But Goizueta, as Warren
Buffet once said, had a knack for turning " lemins into lemonade". The original
formula was return to the market as Coca Cola classic, the product began to
increase its lead over the competition a lead that continues to this day.
Atlanta pharmacy. Now well at 2nt century, the company's goal is to provide that
magic every time, in 200 countries, with each of it's 230+ and ever growing
brands. Coca - Cola has customers from Boston to Bahrain, drinking brands like
Ambassa, Veitabela and freseolita. In the remotest corners of the globe, you can
still find Coca Cola.In February 2000, Doug Daft was named company
chairman. Coca - Cola a huge international company, but Draft's vision is to have
the company operate as a collection of smaller, locally run business. "No one",
Daft points out, "decides to enjoy one of our products globally". T hat's why
Coca-- Cola committed to local markets, to paying attention to what people from
different cultures and backgrounds like to drink and where and how they want to
drink, livery ten seconds. 1.26,00 people choose to reach for one of the Coca
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Cola company brands & it is the company's mission to make the choice exiling &
Coca - Cola has started its operation in Indian market in October 1993. This
has been its reentry in the India market after withdrawal of its operation in
population is in middle class category which is a strong consumer base for any
Coca-- Cola has acquired the soft drink brands like Thumps Up, Gold spot, l.imea.
Maa/a, Bisleri soda etc which were floated by parle as these products have
achieved a strong consumer base and formed a brand image in Indian market
during the reentry of Coca Cola in 1993. Thus these products became a part of
Provide "clients" with appropriate "systems solutions" for "effective & profitable"
technology.
change & contributing to increase share owner value through a dedicated &
creative team.
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OBJECTIVE OF COCA ~ COLA :
CHAPTER-III
22
THEORETICAL BACKGROUND ABOUT THE TOPIC
persuasive communications
Group influence and opinion leadership; reference group influence; social class
and economic influences, lifestyles, ethnic, religious, age and regional groups
Individual decision-makin
Consumer's perspective
23
CONSUMER BEHAVIOUR
• Personal
• Howard-Sheath
• Nicosia
Perhaps the most useful set of categories is that of low, medium or high level
models. In this case the level refers to the level of complexity - so a low level
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high level model of the same event would be much more complex and detailed
In the marketing context the modeling approach has two key objectives:
behaviors) and/or
about the relationships and processes involved in consumer behaviour Models can
be evaluated against their ability to satisfy either or both of these objectives. Study
on Consumer Behaviour
25
SIMPLE MODELS OF CONSUMER BEHAVIOUR
Lower level or simple models, in contrast, fall into three broad categories - black
Black Box models - do not consider internal variables. They focus on inputs and
monitor. These approaches give a sound basis for marketers seeking to devise
strategies that are appropriate for each stage. Inevitably they are not strong on
Personal variable models - the personal variable models omit external variables.
elements and processes such as perception, motivation, beliefs and values. One
classic example of the personal variable model is the fisheye model, summarized as
A, = B, o,
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Where A0 = the attitude towards object o8, = the strength of belief about o a, =
Behaviour
general
• Perceptions
• Motives
• Attitudes
• Personality
apparent that consumers are also very much affected by social forces outside the
individual"
27
Learning can occur through simple associations between a stimulus and response,
Classical conditioning occurs when a stimulus that naturally elicits a response (an
unconditioned stimulus) is paired with another stimulus that does not initially
elicit this response. Over time, the second stimulus (the conditioned stimulus)
This response can also extend to other, similar stimuli in a process known as
outcomes and avoid those that result in negative outcomes. While classical
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Extinction of the behaviour will occur if reinforcement is no longer
received.
as a result of seeing someone else performing and being rewarded for it.
which it is coded, help to determine when and how this information will
retrieval include the level of familiarity with an item, its salience (or
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Products also play a role as memory markers: they are used by consumers
often valued for their ability to do this. This function also contributes to the use
recognition or
if it is presented to them than to recall one without being given any cues." (See
Free sample of hair shampoo delivered Faced with mounting debts, individual
bathroom. When usual shampoo runs to solve the problems with a single out,
trial pack is used, found acceptable loan. Learns the cost of borrowing and
30
A common brand of baked beans id Clothes purchased and worn give
Consumer Behaviour
Customer buys 'the Independent' purchase mountain bike to solve the instead
problem Consumer spots 'low salt, low sugar' Consumers as a family, having won
Latent beans on the supermarket shelf, the pools, decide that they can now
learning Remembers healthy eating afford their 'dream car. Choose advertisements
and purchases tin model they have always wanted A child learns parental roles by
new style sutt before deciding learning thinking about it to purchase Car taken
to garage for service. Commuter finds level of smoke Customer offered a new
higher-Experimental pollution on upper deck of bus too powered model to use for
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the day-learning offensive to tolerate and decides to Impressed by the car, the
consumer travel on lower deck decides to move up the range when the time comes
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33
In the marketing context, Engel, Blackwell and Minored suggest
The first step in this stage is often internal memory search to establish whether
the individual possesses enough information about the available options to make a
In low involvement consumer decisions this may often be the case, but external
stage, as well as the more formal marketing and advertising messages. Similarly,
The information search stage is also affected strongly by individual differences and
environmental factors e.g. the traits and orientation of some individual’s means that
they have the personality characteristic of caution - such people will tend to
conduct extensive and detailed information search. Similarly families and reference
groups are likely to make significant contributions to the amount and style of search
conducted.
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Many of our decisions are often made on less than complete information. The
important point is that the purchaser feels that enough information has been
gathered.
In the light of the differences between high and low involvement purchasing,
so gathered should be fed into the memory system via processes similar to the
research on Perception:
"Humans are apparently so constituted that they cannot refrain from evaluating,
purview".
Note the importance of the role of criteria in the process of evaluation - the
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Internal or external outcomes? These possibly conflicting objectives can be
seen as being internal or external to the decision-making unit - we may satisfy our
The criteria we use stem from our values, beliefs, attitudes and intentions.
However it is not unusual for people to seek a single measure that will pin down
against which to judge the effectiveness of our purchase. The reality appears to
must
36
Determine the evaluative criteria to use for judging alternatives
These criteria will usually vary in their relative importance or salience. Price
Consumers must determine the set of alternatives from which a choice will be
Consumers may also rely on their existing knowledge for judging how well
alternatives Perform along the salient evaluative criteria. The cutoffs or ranges of
acceptable values That consumers impose for evaluative criteria will strongly
Bead four
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(4) Select and apply a decision rule to make the final choice
Finally, the strategies and procedures used for making the final choice are
decision rules.
product strengths.
Non-compensatory rules:
most important attribute. If there is a tie, then the second the most important
brands Are first evaluated on the most important attribute. Now, however
the consumer Imposes 'cutoffs' e.g.' must be under £2'; 'must be at least
nutritious'.
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If only one brand meets the cutoff on the most important attribute it is
chosen. If several brands meet the cutoff, then the next most important
attribute is selected and the process continues until the tie is broken.
procedure. Cutoffs are established for each salient attribute. Each brand is
If the brand meets the cutoffs For all attributes, then it is chosen. Failure to meet
the cutoff for any attribute leads to In contrast compensatory rules do allow
attributes is chosen.
The relative salience of relevant evaluative criteria is also incorporated into the
39
Phased decision strategies: These involve the sequential use of at least
process.
In the initial stage, one type of rule is used as a screening device to help
decision rule is then applied to the remaining alternatives to make the final
choice.
40
Consumer Behavior focuses on how and why consumers make decisions to buy
goods and services. Consumer Behaviour research goes far beyond these facets of
consumer behaviour and encompasses all of the behaviour that consumers display
and disposing of products and services. Simply stated, consumer behaviour has
traditionally been thought of as the study of "Why people buy". With the premise
consumer activities. As the study of consumer behaviour has evolved, so has its
or "Why people buy". More recently, researchers and practitioners have focused
conceptual framework than buyer behaviour does because it includes issues that
arise after the purchase process occurs. There are several activities included in the
41
Purchase or receipt of a product.
42
CHAPTER-IV
DATA ANALYSIS
43
DATA ANALYSIS
1. A question was asked to the consumers whether they consume soft drinks
ATTRIBUTES No. OF % OF
RESPONDENTS RESPONDENT
S
Yes 95 95%
No 05 05%
The above table depicts that 95% of the consumers consume soft
drinks.
yes
no
I. A question was asked to the consumers to know how often they consume
ATTRIBUTES RESPONDENTS OF
No. OF % RESPONDENT
S
44
Daily 32 34%
The above table depicts that 45% of the consumers consume soft drink twice in
a week and the major percentage of consumers consume soft drink daily.
chart 2
Daily
Twice in a
week
Once in a week
Once in a
month
3. A question was asked to the consumers that about their favourite soft drink
45
S
Coca-Cola 14 15%
ThumsUp 34 36%
Sprite-Pepsi 33 03 35% 03%
7 up 02 02%
Dew 03 03%
Others 06 06%
The above table depicts that 36% of the Consumers consume ThumsUp, 35%
chart 3
Coca-Cola
ThumsUp
Sprite-Pepsi
7 up
Dew
Others
46
ATTRIBUTES No. OF % OF RESPONDENTS
RESPONDENTS
Affordable 71 75%
Costly 12 13%
Lesser 06 06%
Can't say 06 06%
The above table depicts that 75% of respondents can afford, 13% of
respondents feel the product is costly, 6% of the respondents feel the product is
less costlier than it should be. 6% of the respondents cannot say about the
product
price.
Affordable
Costly
Lesser
Can't say
5. A question was asked to the Consumers about (he reasons for preferring
ATTRIBU No. OF % OF
47
TES RESPONDENTS RESPONDENT
!
Taste 38 40%
Quenching 09 09%
thirst
Strong 1I 13%
Gas 09 09%
Content
Others 28 29%
The above table depicts that 40% of the Consumers consume the product
preferring the Taste, 09% of the consumers consume the product to quench the
thirst and 09% of the consumers consume the product for its gas content.
chart 5
Taste
Quenching
thirst
Strong
Gas Content
Others
6. A question was asked to the consumers about the role of flavour in the
48
ATTRIBUTES OF % OF
No. RKSPONDEINTS RESPONDENT
Efficient 50 53%
Neither Efficient
Nor Inefficient 07 07%
Inefficient 05 05%
The above table depicts that 53% of the consumers feel the flavour is efficient,
35% of the consumers feel the flavour is very efficient, 7% of the consumers
feel the flavour is neither efficient nor inefficient, 5% of the consumers feel the
flavour is inefficient.
chat 6
Efficient
Very Efficient
Neither Efficient
Nor Inefficient
Inefficient
49
ATTRIBUT No. OF % OF
ES RESPONDENTS RESPONDENTS
Very Good 14 15%
Good 71 74%
Neither Good
Nor Bad 10 11%
Bad 00 00%
ch art 7
V ery Good
G ood
Neither G ood
Nor B ad
B ad
50
ATTRIBUTES No. OF % OF
RESPONDEN RESPONDENT
TS S
Very Efficient 24 25%
Efficient 51 54%
Neither Efficient Nor
Inefficient 13 14%
Inefficient 07 07%
chart8
VeryEfficient
Efficient
Neither Efficient
Nor Inefficient
Inefficient
51
9. A question was asked to the consumers about the product availability and
ATTRIBUTES OF % OF
No. RESPONDENTS RESPONDENTS
With in the reach 72 75%
So far 13 14%
chart 9
With in the
reach
So far
Difficult to get
52
10. A question was asked to the consumers about the media, which shows
Hoarding 14 14%
Internet 16 17%
53
chart 10
T.V
News Paper
Hoarding
Internet
54
CHAPTER-V
1. The important factors that influence the purchase decisions for a soft
2. Besides the factors mentioned above the other important factors that
Price.
Among the respondents. The product is very much popular for its easy
55
availability
6,2 SUGGESTIONS
study.
be taken up.
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QUESTIONNARE
• Yes • No
• Daily • Twice in a
57
• Pepsi • 7up
• Others
• Affordable • Costly
• Taste • Quenching
thirst
• Strong • Gas
Content
• Others
• Efficient •
Very Efficient
Inefficient
58
7) What is your opinion on packaging of the product?
Bad
10) What about the media, which shows impact on product promotion?
• T.V • Newspaper
• Hoarding •Internet
BIBLIOGRAPHY
WEBSITES WWW.COCA-COLA