A Project Report on Contemporary Issue

Titled

A Comparative Study On
Consumption
of
Soft Drinks and Fruit Juices

Acknowledgement

A word of thanks.
Before I get into the thick of the things I would like to add a few heartful words for the
people who gave unending support right from the stage the idea of the research was
conceived. I express my deep sense of gratitude & sincere thanks to those who have helped
me in developing this research work. It is impossible to put out or classify the assistance; it is
the feeling that matters, & not the value.
First of all I would like to express my sincere gratitude to my beloved Supervisor Ms. VIDHI
for giving me an opportunity to do this research & extend her kind co-operation.
Deepest appreciation & thanks go to my respective family for their patience & understanding,
friends & classmates for their insights comments throughout the research.
Above all it is the grace & blessings of God Almighty, which made this, Endeavour a success.

EXECUTIVE SUMMARY
2

Soft Drinks were common preference among all the individuals before juices were being
introduced, with the changing lifestyle and income levels, people are shifting their
consumption patterns and have therefore become more health conscious thus leading to
increase in demand of juices. Market Research is based on some underlying parameters like:

Changing consumption pattern

Health factor
Status consciousness
Varying lifestyle

The basic subject matter of the research, comparative analysis of Soft Drinks and
Juices is focused to study the mind/taste of different age group of people.
The study starts with determining the major players in the soft drinks and the juices
market, their overall consumption pattern among the people and ends up with the
conclusion as per the state of mind of the average rational human being.

TABLE CONTENT
Page no.
3

1.

OBJECTIVE

2.

About fruit juice market

3.

About carbonated drink

4.

Literature review

12

5.

Beverage

14

6.

Overview of industry

17

7.

Indian beverage market

19

8.

Recent issue

20

9.

Study of growth

28

10. Major Player in soft drinks

29

11. Study of growth of fruit drink market

32

12. Major Player in fruit drink

33

13. Research methodology

36

14. Data analysis

41

15. Conclusion

53

16. Suggestion

55

17. Limitation

56

18. Bibliography

57

19. Annexure

58

OBJECTIVE
4

1) To find demographic variations among juices & health drinks consumers.

2) To find relation between consumption pattern and
a) Income of consumers.
b) Suggestion given to others.
c) To find various factors affecting their choices.
d) To find brands preferred by the consumer.

About Fruit juices market

Different companies are now looking at different pack sizes and price points. New entrants
are also expected to join the fray in the Rs 500-crore (Rs 5 billion) organized fruit beverage
market (nectars, drinks and juices combined).
What's making all these players gung-ho about fruit beverages? For one, the fruit drink
market (juice accounts for 30 per cent, nectar is 10 per cent and fruit drinks are 60 per cent of
the market today) has grown at a 20 per cent to 25 per cent rate.
Of this, the more expensive juices segment has grown at a 40 per cent rate this year. It
accounted for only 15 per cent of the fruit beverage market three years back. Consumer
habits have changed drastically. They are looking for healthier options and nutritional value
in the food they buy today.
But it's not just the health fad that has led to the growth spurt. Cola sales fell dramatically
after the pesticide controversy and this seems to have benefited the fruit beverage industry.
Soft carbonated drinks (colas) grew 17 per cent in 2002 but fell 15 per cent in 2003.

What also made the market work is the fact that tetrapacs offered a solution to provide fruit
juice practically fresh and preservative free.
The proliferation of supermarkets and malls in metros and mini-metros (key markets for this
category), added to the growth story as well. And then there is the income factor.
The other factors that have helped are the different pack sizes that players started offering in
the last year. Tropicana launched a 500 ml pack at Rs 25 compared to a one litre pack for Rs
76.
These new price points and packs are aimed at getting more consumers to try the new
product, and in turn increase the consumer base.
All of this has resulted in increased in-home consumption of juices, which has gone up from
30 per cent three years back to almost 80 per cent today. Consumers perceive this as the next
best thing to having a fresh fruit. Convenience is no longer the selling point, the natural taste
& essence matters. The Companies have big plans for the future. Dabur, which currently has
a 55 per cent market share, wants to launch more Indian fruits and even fruit and vegetable
juice combinations in the near future. It is also trying to bring down prices.
So, it has launched Coolers 15 per cent cheaper than real because it has lower pulp content.
And by setting up a food processing plant in Siliguri , West Bengal and Dabur will source
fruits directly from farmers and cut down raw material or pulp costs, which comprise almost
30 per cent of the finished product.
Similarly, other players like Godrej are also looking at launching new variants including
combinations by year-end. Parle Agro, which has been experimenting with sugarcane juice
for some time now, has launched mango Fruity in 65 ml packs in Pune, Gurgaon and Mumbai

for Rs 5. A year back, it extended the Fruity brand into pineapple and orange variants as well
as launching it in 250 ml and one-litre PET bottles.
Pepsi's Tropicana has tied up with equestrian sports and polo clubs to build bridges with the
well-heeled young adults. Its recent sampling exercise included an interactive quiz reaching
out to 200,000 students from 150 schools in Delhi.

Health drinks-

According to the research report, the Indian health drinks market was estimated at around Rs.
216 Billion in 2008 and is forecast to grow at a CAGR of around 15% during 2009-2012. The
report covers various factors driving the growth of health drinks market in India.
India has witnessed radical shift in consumption of health drinks over the recent past. Fast
expanding middle class population that is currently around 350 Million, increased
urbanization and rising disposable income are some of the major reasons contributing to this
change. Besides this, growing health consciousness among Indias young population has
brought about a revolution in the Indian health drinks market. It has been seen that cola sales
have fallen dramatically due to rising health concerns and this seems to have benefited the
countrys non-carbonated drinks market such as energy drinks and juices.
There is a greater awareness of the functional benefits of health beverages and a greater
willingness to pay a premium for such beverages. With these strong drivers of growth, it is
not surprising that the beverage industry in India has begun responding with products that are
marketed clearly on a health and wellness platform.
The segment level analysis shows that the highest growth will be seen in the fruit juice
market, which is forecast to growth at a CAGR of around 30% in value terms during 20102012. It will be closely followed by the energy drinks segment at a CAGR of around 29%
during the same period.

There is a greater awareness of the functional benefits of health beverages and a greater
willingness to pay a premium for such beverages. With these strong drivers of growth, it is
not surprising that the beverage industry in India has begun responding with products that are
marketed clearly on a health and wellness platform.

Why market demand of energy drinks & fruit juices are growing
in Indian market

In the recent years, India has been observing a sweeping shift in consumption of nonalcoholic drinks, like energy drinks and juices. The growing middle class that currently is
around 350 million, rising urbanization and increase in purchasing parity are some of the
primary reasons, prompting this change. Indian non-alcoholic drinks market which in 2008
stood around Rs 216 billion is projected to grow almost by 15% during 2010-2012.

Furthermore, rising health consciousness among the masses has increased the popularity of
these non-alcoholic drinks. And as expected, cola sales have been plummeting due to rising
health issues and this seems to have boosted the growth of country's non-carbonated drinks
like energy drinks and juices.

As per the segment level analysis, fruit juice market would witness the highest growth around
30 percent in value terms in 2010-2012, followed by energy drinks segment. In these
changing times, a greater awareness towards health beverages and energy drinks is being
witnessed and the best part being people don't mind coughing up a little more for them.
Indian companies are undoubtedly cashing in on the health and wellness
understanding/awareness among the masses by launching products that meet their
requirements.

About Carbonated Drinks

Juices are often consumed for their perceived health benefits. For example, orange juice is
rich in vitamin C, folic acid, potassium, is an excellent source of bioavailable antioxidant
photochemical and significantly improves blood lipid profiles in people affected with
hypercholesterolemia. Prune juice is associated with a digestive health benefit. Cranberry
juice has long been known to help prevent or even treat bladder infections, and it is now
known that a substance in cranberries prevents bacteria from binding to the bladder.
The high sugar content of fruit juices is often not realizedmany fruit juices have a higher
sugar (fructose) content than sweetened soft drinks; e.g., typical grape juice has 50% more
sugar than Coca Cola.
Fruit juice consumption overall in Europe, Australia, New Zealand and the USA has
increased in recent years, probably due to public perception of juices as a healthy natural
8

source of nutrients and increased public interest in health issues. Indeed, fruit juice intake has
been consistently associated with reduced risk of many cancer types, might be protective
against stroke and delay the onset of Alzheimer's disease.
The perception of fruit juice as equal in health benefit to fresh fruit has been questioned,
mainly because it lacks fiber and has often been highly processed. High-fructose corn syrup,
an ingredient of many juice cocktails, has been linked to the increased incidence of type II
diabetes. High consumption of juice is also linked to weight gain, but fruit juice consumption
in moderate amounts can help children and adults meet daily recommendations for fruit
consumption, nutrient intake and calories.
A number of packaged juices contain added sugars and sweeteners. These make them more
liked by children but the extra sugars can contribute to childhood obesity and infantile
diabetes. Diabetes is a very common illness in India. Once a child develops a taste for extrasweet packaged juices, it is hard for them to accept less sweet but natural juices. Most juices
contain Vitamin C, and some contain added fortifiers like calcium, Vitamin A and Vitamin C
and this can beneficial for children. However, juice with fortified calcium is not a
replacement for milk. Milk contains a number of other ingredients that are good for children.
Fruit juices must not be used as a substitute for milk.
Packaged fruit juices contain none of the natural fibers that are in fruit, unless they contain
pulp also. Fiber is an important part of children's diets as it improves digestion. The act of
washing, peeling, biting and chewing fruit teaches our children important physical skills.
They young fingers learn how to be flexible and their mouth learns how to mash food before
swallowing it. By taking longer to consume the same amount of calories, it reduces
overconsumption and keeps them healthy. Behaviorally, eating a whole fruit helps children
combat the need for "instant gratification". Instant gratification is the need to get satisfaction
immediately and always. While poking open a fruit juice container seems efficient, we are
teaching our kids that happiness comes out of a package.
Pediatricians recommend that juices must not be introduced into infant diets till they are 6
months old. Packaged fruit juices, if bought correctly, do help our children's hydration as they
contain a lot of water.
These are packaged products that have a fruit sounding name or a fruity logo, but seldom
contain 100% fruit juice. They are almost always made with artificial flavors, added synthetic
sugars. They may also be aerated/carbonated
Parents often think that packaged fruit juices and drinks have the same benefits as fruits and
feed them to their children. Often there is also overconsumption as no limit is set on what is
perceived to be a healthy source of nutrition. Unfortunately, the truth may be far from it.

LITERATURE REVIEW
1) European Study Published By International Journal 2006
This past week, results of a European study, published in the International Journal of Food
Science and Nutrition in 2006, made the news. This study was actually a comprehensive
review of the literature on fruit and vegetable juices. This study does raise an interesting
point. Heres the crux of the study, according to the authors: When considering cancer and
coronary heart disease prevention, there is no evidence that pure fruit and vegetable juices are
less beneficial than whole fruit and vegetables.
Dietitians may find this study to be a double-edged sword. On the one hand, its good news.
For people who dislike eating fruits or vegetables, downing a glass of grape juice or carrot
juice is an easy way to get the vitamins, minerals, and antioxidants they need to help prevent
heart disease and cancer. But, on the other hand, the issue of calories and carbohydrate
surfaces when it comes to folks who are trying to watch their weight and/or who have
diabetes.
2) Carbonated Drinks by Cadrik Manslon 2005
If one ever met with a dietitian for your diabetes, chances are he has been advised to limit
fruit juices. Why? Well, a 4-ounce glass of orange juice, for example, contains about 60
calories and 15 grams of carbohydrate. In the carbohydrate counting method of diabetes meal
planning, this is considered one carb choice. Most people dont care, though, and end up
drinking more like 8 or 12 ounces, since calories add up, and the additional carbohydrate is
reflected in higher blood glucose readings shortly thereafter. And to make matters worse,
some juice drinks have additional sugar added to them, often in the form of high fructose
corn syrup (HFCS). This sweetener has its own set of problems, including possible links to
obesity and high triglyceride levels. Cranberry juice cocktail and many fruit juice blends
are examples of sweetened juices. Instead, using juice to treat hypoglycemia and, instead,
eating fresh fruit. Fruit is higher in fiber and takes longer to eat, so its more filling and
satisfying. Plus, its easier to control portions with fruit than it is with juice. Tomato or
vegetable juice have fewer calories and less carbohydrate than fruit juice.
Now comes along this review of literature with its conclusions that juices are just as good as
fruit. On the one hand, people can fight heart disease, cancer, and possibly even Alzheimer
disease by drinking juice. Fresh (or frozen) fruits and vegetables offer something that juices
dont, and thats the satisfaction of eating a tart Macintosh apple on a crisp fall day; a sweet,
juicy peach in the heat of the summer; or a bright orange, crunchy carrot straight from the
garden.

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BEVERAGE
What is beverage ?
A drink, or beverage, is a liquid specifically prepared for human consumption. Inaddition to
basic needs, beverages form part of the culture of human society. Or any liquid suitable for
drinking; "may I take your beverage order?"or A liquid to consume, usually excluding water;
a drink. This may include tea, coffee, liquor, beer, milk, or soft drinks.

Types of beverage
The various types of beverage are:

Alcoholic beverages
Non-Alcoholic beverages
Soft drinks
Fruit juice
Hot beverages
Other

1. Alcoholic beverages
An alcoholic beverage is a drink containing ethanol, commonly known as alcohol, although
in chemistry the definition of an alcohol includes many other compounds. Alcoholic
beverages, such as wine, beer, and liquor have been part of human culture and development
for 8,000 years.

2. Non-alcohol beverages
Non-alcoholic beverages are drinks that would normally contain alcohol, such as beer and
wine but are made with less than .5 percent alcohol by volume.
The category includes drinks that have undergone an alcohol removal process such as nonalcoholic beers and de-alcohol zed wines.

3. Non-alcoholic variants:

Low alcohol beer

Non-alcoholic wine
Sparkling cider

3. Soft drinks

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The name "soft drink" specifies a lack of alcohol by way of contrast to the term "hard drink"
and the term "drink", the latter of which is nominally neutral but often carries connotations of
alcoholic content. Beverages like colas, sparkling water, iced tea, lemonade, squash, and fruit
are among the most common types of soft drinks, while hot chocolate, hot tea, coffee, milk,
tap water, alcohol, and milkshakes do not fall into this classification. Many carbonated soft
drinks are optionally available in versions sweetened with sugars or with non-caloric
sweeteners.
4. Fruit juice
Juice is a liquid naturally contained in fruit or vegetable tissue. Juice is prepared by
mechanically squeezing or macerating fresh fruits or vegetables without the application of
heat or solvents. For example, orange juice is the liquid extract of the fruit of the orange tree.
Juice may be prepared in the home from fresh fruits and vegetables using variety of hand or
electric juicers. Many commercial juices are filtered to remove fibre or pulp, but high pulp
fresh orange juice is a popular beverage. Juice may be marketed in concentrate form,
sometimes frozen, requiring the user to add water to reconstitute the liquid back to its
"original state"

5.Hot beverages
Hot beverages, including infusions, sometimes drunk chilled.

Coffee-based beverages
Cappuccino
Coffee
Espresso
Caf au lait
Frapp
Flavored coffees (mocha etc.)
Fatte
Hot chocolate
Hot cider
Mulled cider
Tea-based beverages
Flavoured teas (chai etc.)
Green tea
Pearl milk tea
Tea
Herbal teas
Yerba Mate
Roasted grain beverages
Sanka

12

6. Other
Some substances may either be called food or drink, or accordingly be eaten with a spoon or
drunk, depending on solid ingredients in it and on how thick it is, and on

Preference:

Soup
Yogurt

13

OVERVIEW OF THE INDUSTRY

The beverage market is worth $55 billion worldwide.
The tides are turning for many beverage categories. While the carbonated soft
drink and beer categories are merely treading water with flat sales, the energy
drink category is surging ahead like never before. Bottled water, ready-to-drink
coffee, ready-to-drink tea and sports drinks follow close behind with substantial
sales increase- drinks without added sugar, no beer, along with developments in
juice drinks and dairy-based drinks, are helping to turn around sales in these
categories. What follows is a category-by-category look at the state of the
beverage industry, including the top brands, new products, innovations and
future trendsetters.
In order to be successful in the marketplace, one has to think in terms of health
innovation, flavour innovation, ingredient innovation and specific age groups.
These are the factors that will shape the future of the beverage industry.
Todays consumers are concerned with overall health and wellness. As a result,
there is significant impact on food and beverage purchases. Many studies have
shown that consumers are as concerned with good health as they are about
maintaining a high quality of life.
Do you know what type of new beverage consumers are most likely to try? Do
you know where they are most likely to pick those products up? Do you know
why?
Beverage Industry wanted to know the answers to these questions and to delve
deeper into the ever-increasing number of new product launches in the beverage
market. The soft drink industry is training people to seek out new products,
even the big guys are coming out with limited-edition flavours, and consumers
are beginning to see that there is more flavour activity going on in the category.
Whether that really nets anybody any sales gains is another thing, but it is
teaching consumers to seek out and try new products. Its also trying to create
some excitement there.
In spite of several challenges and restrictions faced by this industry, it is a roll
like never before. Customer preferences may have shifted, but they are still
always on the lookout for a can of coke or a new flavoured drink to quench
their thirst.
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INDIAN BEVERAGE MARKET

The size of the Indian food processing industry is around $ 65.6 billion, including $20.6
billion of value added products. Of this, the health beverage industry is valued at $230
million; bread and biscuits at $1.7 billion; chocolates at $73 million and ice creams at $188
million.
The size of the semi-processed/ready-to-eat food segment is over $1.1 billion. Large biscuits
& confectionery units, Soya processing units and starch/glucose/orbital producing units have
also come up, catering to domestic and international markets.
The three largest consumed categories of packaged foods are packed tea, biscuits and soft
drinks. The Indian beverage industry faces over supply in segments like coffee and tea.
However, more than half of this is available in unpacked or loose form. Indian hot beverage
market is a tea dominant market. Consumers in different parts of the country have
heterogeneous tastes. Dust tea is popular in southern India, while loose tea in preferred in
western India. The urban-rural split of the tea market was 51:49 in 2000.
Coffee is consumed largely in the southern states. The size of the total packaged coffee
market is 19,600 tonnes or $87 million. The total soft drink (carbonated beverages and juices)
market is estimated at 284 million crates a year or $1 billion. The market is highly seasonal in
nature with consumption varying from 25 million crates per month during peak season to 15
million during off-season. The market is predominantly urban with 25 per cent contribution
from rural areas. Coca cola and Pepsi dominate the Indian soft drinks market. Mineral water
market in India is 65 million crates ($50 million) industry. On an average, the monthly
consumption is estimated at 4.9 million crates, which increases to 5.2 million during peak
season.

RECENT ISSUES
1. Xtazy, another energy drink for the Indian market
The Indian market for energy drinks was estimated recently to have a size of Rs 500 crores,
about 90 million Euros. The market which is so far dominated by Red Bull is attracting
various new players which want to get a share in a growing business.
One of the aspirants is Xtazy, an energy drink from the US. Xtazy is the fourth largest
energy drink in the US, says Rohan Malhotra, Managing Director of R. M. Indian Liquor
Pvt. Ltd., the exclusive importer for Xtazy. Malhotra has launched Xtazy already in Eastern
India, and was looking now for a distributor in the Delhi area, when FII spoke to him during
IFE fair in Delhi recently.

15

In order to take on Red Bull and get a share of 20% from their business, Malhotra wants to
offer better conditions to distributors. We provide a margin of 6-8% to a distributor, who
thus can earn about Rs 6 a can, Malhotra says. This is more than what Red Bull offers
which is only about 2 3 Rs per can. Xtazy is available in cans of 350 ml, thus more than
the usual 250 ml of other energy drinks, and will be priced with a MRP of Rs 85. Four
variants are offered, Cranberry Blast, Sugar Free Passion Fruit- Pineapple, Orange Blast and
Lime Blast.
Malhotra has planned several marketing measures to promote Xtazy, like PoS actions,
coupons and direct marketing in a first round, and night parties in a second round. In
marketing communication, he is highlighting not only the variants, but also health effects as
the USPs of Xtazy, which are derived from ancient herbs used in the drink like gingko and
Guarana. The extract of gingko biloba leaf has been shown to dilate blood vessels and has the
ability to increase peripheral blood circulation, especially to the brain, the company writes in
a leaflet. Guarana from Brazil would serve to promote weight loss by increasing the
metabolic rate and reducing the appetite.
Besides the US, Malhotra says, Xtazy would be marketed also in Israel, Ukraine and in
Turkey and would soon be launched in China.

2. Australia-based "Aromas" launches first coffee store in

India.
Australia-based "Aromas," one of the leading coffee chain shops, launched its first caf outlet
in India at Hiranandani, Poway, and Mumbai. The company also tied up with Ideal
Hospitality Private Ltd (IHPL), which would own the brand in the country and south-east
Asia.
Jayant Mahiskar, chairman and MD, IHPL, said, "Aromas is being launched keeping in mind
the true coffee connoisseurs. We aim at targeting the youth and corporate at our outlets and
Poway with a mix of residential and office complexes was a natural choice.
The coffee has been created from selection of the original beans and blended to suit all tastes.
Aromas ensure freshness and fullness of flavour." According to the agreement with Aromas,
IHPL will pay about 1.5% of the gross revenue earned.
Further, the company has decided to invest about Rs. 50-75 crores in the next three years to
expand its footprint with 99 outlets in India.
3. China rejects Coke bid to take-over major juice maker China has rejected Coca-Cola's $2.5
billion bid to buy a major Chinese juice maker. The purchase of Huainan Juice Group Ltd
would have been the biggest foreign acquisition of a Chinese company to date. The proposed
purchase was rejected on anti-monopoly grounds, the Chinese commerce ministry announced
on its website.
16

Coca-Cola's bid in September prompted an outcry by nationalists who urged the government
to bar foreigners from acquiring one of China's most successful home-grown brands. Rival
juice producers warned that the acquisition would give Coca-Cola too dominant a position in
China's beverage market. A Coca-Cola spokesman in Hong Kong learned of the rejection of
the sale had no immediate comment. Huainans founders and major shareholders already had
endorsed the sale.
If Coke were to take over Huainan, it will dominate the soft drinks market in China, which
not only hurts consumers, but also other sector participants. Huainan controls more than a
tenth of the Chinese fruit and vegetable juice market that grew 15% last year to $2 billion.
Coca-Cola has a 9.7% share and dominates in diluted juices.
According to analysts China's ruling on Coke could cut both ways in that Chinese firms that
have been making increasingly high profile acquisitions abroad may run into trouble of their
own.

4. Pepsi's Slice kicks off the new season with 'Aamsutra'

PepsiCo's popular mango juice drink brand- Slice kicks off the
2009 season with its new 'Aamsutra' concept.
According to Home Battiwalla, business head, juice & juice drinks, PepsiCo India, Slice had
seen powerful consumer momentum post the re-launch of 2008. The new winning
formulation has been appreciated by consumers. Aamsutra has driven strong disruption in the
juice and juice drink category. All of this has made slice the fastest growing mango drink
brand in the country.
"South India is the lead market for mango drinks in the country. Andhra Pradesh is the
biggest mango market and also the fastest growing market for Slice and mango drinks in the
country. Tamil Nadu is amongst the top three states and Slice is the market-leader in Tamil
Nadu," he added Pepsi has now opted for a new brand ambassador, Katrina Kaif.
"The creative thought behind the new communication was to further enhance the Slice
experience into dimensions of pleasure, sensuality and indulgence. Last year's commercial
was about enumerating the principles of 'Aamsutra' or the art of experiencing pure mango
pleasure with the new Slice. This year, the commercial portrays the next level to bring alive
the mango indulgence, stated Hari Krishnan, Vice President, JWT.
The company has now opted for a 360 multimedia campaigns involving digital, print, radio,
impact outdoors and sampling in core markets.

5. Parle Agro launches lemon flavoured drink "LMN"

Parle Agro, one of the leading food & beverage companies in India, has launched a new fruitbased lemon drink LMN in the non-carbonated segment. The new brand is a natural lemon
juice drink and the only brand in India with a taste closest to homemade, fresh lime water
17

(Nimbu pani). According to the company, LMN will offer consumers a healthy, refreshing
drink with the goodness of vitamin C. Every summer, the Indian beverage market has seen
cola majors battle it out. This summer, the launch of LMN will see the cola wars taking a
back seat and the battle spilling over to the non-cola segment, to be more precise in the nimbu
paani category. PepsiCo India last week launched a nimbu pani drink, Nimbus, under the 7Up
brand. On the occasion of LMN's launch, Nadia Chauhan, joint managing director and CMO,
Parle Agro, said, "Nimbu pani has traditionally been India's most commonly consumed cold
beverage. In fact the idea of a branded lemon drink is so simple that you would wonder why
nobody thought of it earlier. The challenge for us was packaging a natural product while
retaining its fresh, original taste throughout its shelf life."
LMN will be available in 110 ml Tetra, 200 ml Tetra and 500 ml PET packs priced at Rs 5, Rs
10 and Rs 23 respectively. The company aims to touch a turnover of Rs 3000-3500 crores by
2011.
The company will target both (youth and adult) segments of consumers to turn them into
branded consumers of nimbu pani. Besides this LMN will also target an emerging segment of
consumers who are looking for a healthy and refreshing beverage in the country? "For the last
20 years, Parle Agro has been the market leader in fruit based beverages, we have constantly
worked keeping in mind Indian preferences while formulating products that cater to the
Indian palate. It is without any doubt that only an Indian company can understand what real
nimbu pani tastes like and what the Indian consumer wants in a packaged offering," Chauhan
added.
Further, the company claims that packaged nimbu pani will have tremendous growth
potential, higher than other packaged drinks mainly because of a major shift in consumer
behaviour. Today, the beverage consumer is looking for hygiene, convenience, refreshing
taste, affordability and year-round availability. The name LMN is derived from the SMS
version of the word lemon. Parle Agro also owns other fruit drink brands like Fruity, Appy
Fizz and packaged drinking water, Bailey.

6. PepsiCo launches 'Nimbus,' packaged lemon juice with no fizz

and artificial flavours
PepsiCo India has launched its packaged nimbu paani, Nimbus, under its 7Up brand.
The home-made nimbu paani or lime juice has been specially created to suit Indian tastes.
The lemon juice, no fizz and artificial flavours, is available in trendy, convenient packs.
The drink offers great value to consumers in three packaging formats of 200 ml returnable
glass bottles (RGB), 350 ml PET and 200 ml Tetra attractively priced at Rs 10, Rs 15 and Rs
10, respectively.
According to Ms Punita Lal, Executive Director- Marketing, PepsiCo India, Nimbus, is
specially developed to suit Indian tastes and preferences.
18

"Nimbooz is an affordable offering for consumers on the go because of its ready-to-drink

format that is both convenient and hygienic. The proposition of the Indian refresher perfectly
captures the mass appeal of this product and will certainly drive consumer connect, stated Ms
Alpana Titus, Executive VP-Flavours, PepsiCo India.
PepsiCo has drawn up an intensive consumer activation campaign to market Nimbus.
The 360 degree marketing communication plan will revolve around building awareness
through multi-city launches and road shows, comprehensive 3D activation, leveraging Outof-Home (OOH) media, radio, press and outdoors. Aggressive trial generation and sampling
initiatives will also be taken forward across major cities of the country. A special 'Nimbooz
Highway Gadi' has been created that will visit the four major highways connecting Delhi to
Jaipur, Dehradun, Agra to drive trails and consumer education.
7. Coke launches fruit-flavoured Fanta Apple nationally
After successfully introducing it in southern markets last year, Coca-Cola India has launched
its fruit-flavoured soft drink 'Fanta Apple' nationally. The product is available in 200 ml and
300 ml returnable glass bottles and also in 500 ml PET pack, priced at Rs 8, Rs 10 and Rs 22
respectively.
During the Fanta Apple launch in October 2008, Venkatesh Kini, marketing vice-president,
Coca-Cola India, said that the company had planned to reach about 3.5 lakh customers with
sample apple flavoured drink to extend its market leadership in the fruit flavoured segment in
Andhra Pradesh and Tamil Nadu.
"As per consumer research, we have found that after orange, apple is the most preferred fruit
in the country and Fanta Apple has been developed specially for the Indian palate,"
Kini said on Monday. According to experts, the nationwide launch of Fanta Apple is a part of
the company's $250 million business plan for the country.
Fanta Apple is the second flavour after Fanta Orange under "Fanta" brand of the company.
"We have had an excellent response down south with a reused value to the drink and with the
national launch of Fanta Apple, we are stepping stones to extend Coca
Cola India's market leadership in the fruit-flavoured sparkling drink segment," Kini added.
The company has also announced Bollywood actress Genelia D'Souza as the new brand
ambassador of the Fanta brand.
According to reports, the current expected Indian soft drink market is about Rs 6,000 crore, in
which the company shares about 50% market with its various brands like Coke, 7 Up, Fanta,
Sprite and Thums Up.

19

STUDY OF GROWTH OF SOFT DRINK MARKET

SOFT DRINKS:
Carbonated drinks are dominated by artificial flavors based on cola, orange and lime
with Pepsi and coca-cola dominating the market. The entire part of the drink is based on
its artificial flavors and sweetening agents as no natural juice is used.

MARKET:

Cola products account for nearly 61-62% of the total soft drinks market.
Two global majors Pepsi and coke dominate the soft drink market.
NCAER survey says 91% of soft drink in the country is in the lower, lower middle
and upper middle class people.
The market is worth around Rs.5000 crores with growth rate of around 10-15%.
The annual per capita consumption in India is only about 6 bottles vis- a- Vis 34
bottles in the U.S.
The production as soft drinks has increased from 5670 million bottles in 1998-99 to
6230 million bottles in 1999-2000 industry source.
Growth market this year is expected to be 10-15% in value terms and 20-22% in
volume terms.
However, the market for carbonated drinks is stagnating and not growing as expected.

MAJOR PLAYERS IN SOFT DRINKS SEGMENT

20

1.COCA COLA: thanda matlab coca cola!!!

Coca cola has truly remarkable heritage. From a humble beginning in 1886 it has now
become the flagship brand of largest manufacturer, distributor of non-alcoholic beverages in
the world.
In India, coca cola was the leading soft drink till 1977 when govt. policies necessitated its
departure. Coca cola has made its return to the country in 1993.and made significant
investment to ensure that the beverage is available to more and more people in remote as well
as inaccessible parts of the world.
Coca cola returned to India in 1993 and over the past ten years has captured the imagination
of the nation, building strong association with cricket, the thriving cinema industry, music
etc. coca cola has been very strongly associated with cricket, sponsoring the world cup in
1996.
In 2002, coca cola launched the campaign, Thanda Matlab coca cola. in 2003,coke was
available for just rs,5 crores in the country.

2. FANTA: GHOONTH BHAR SHARARAT KAR LEY!!!

Fanta entered the Indian market in year 1996 under the coca cola brand .over the years, Fanta
has occupied a strong market place and is identified as the fun catalyst.
Fanta stands for its vibrant color, tempting taste and tingling bubbles that not just uplifts
feelings but also helps free spirit thus encouraging one to indulge in the moment.

3. LIMCA: LIME AND LEMONI!!!

Drink that can cast a tangy refreshing spell on anyone, anywhere. Born in 1971, Limca has
been the original thirst choice, of millions of consumers for over three decades.
The brand has been displaying healthy volume growing year on year and limca continues to
be leading flavouring soft drinks in the country. Dive into the zingy refreshment of Limca and
walk away a new person.

4. SPRITE: SPIRITE
BAKWAAS!!!

BHUJAYE

PYAAS

BAKI

SAB

World-wide sprite ranked as no.4 soft drink and is sold in more than 190 countries In India,
sprite was launched in year 1999 and today it has grown to be one of the fastest growing soft
drinks, leading clear lime category.

21

Today sprite is perceived as a youth icon. With strong appeal to youth sprite has stood for a
straight forward and honest attitude. Its clear crisp hing taste encourages todays youth to
trust their instincts, influence them to be true who they are and to obey their thirst.

5. THUMS UP: TASTE THE THUNDER!!!

Strong cola taste, exciting personality. Thums up is a leading carbonated soft drink and most
trusted brand in India, Originally Company in 1993.
Thums up, is, known for strong, fizzy taste and its confident, mature and uniquely masculine
attitude. This brand clearly seeks to separate the man from the boys.

6. MAAZA: YAARI DOSTI TAAZA MAAZA!!!

Maaza was launched in 1976. In 1993, maaza was acquired by coca cola India. Maaza
currently dominates the fruit drink category. Over the years, maaza has become synonymous
with mango.
Taaza Mango, Maaza mango, Botal mei aam, maaza hai naam.consumers regard maazaas
wholesome, natural, fun loving drink real experience of fruit.
The campaign builds on the existing equity of the brand and delivers a relevant emotional
benefit to the moms rightly captured in tagline, yaari dosti, and taaza maaza.

7. PEPSI: YEH DIL MAANGE MORE!!!

Pepsi cola is a carbonated beverage that is produced and manufactured by Pepsi co. It is sold
in stores, restaurants and from vending machines. The drink was first made in the 1890s in
North Carolina.
The brand was trademarked on June 16, 1903.There have been many Pepsi variants produced
over the years.

Diet Pepsi
Crystal Pepsi
Pepsi twist
Pepsi max
Pepsi samba
Pepsi blue
Pepsi gold
Pepsi holiday spice
Pepsi jazz
Pepsi x(available in Finland & brazil)

22

STUDY OF GROWTH OF FRUIT DRINK MARKET

FRUIT JUICES
Branded fruit juice market in India holds an immense potential. Usually confused and
considered synonymous with non-aerated drinks, fruit pulps, juices and squash are high sugar
beverages, which are centrifuged and filtered to give a semi clear appearance.
In the past, this sector enjoyed an excise exemption, keeping cost at minimal. However the
withdrawal of exemption has inflated costs and can affect growth, with dramatic change
possible on reintroduction of excise exemption.

MARKET

The organized fruit beverage market is estimated at Rs.500 crores market. (Nectars,
drinks and juices combined).
The market has grown at a 20% to 25% rate.
Of this, more expensive juices segment has grown at rate of 40%this year. It
accounted for only 15% of the fruit beverage 3 years back.
In home consumption of juices has gone up from 30%, three years back to
80%today.
Mango based drinks account for two thirds of fruit drinks industry.

MAJOR PLAYERS IN THE FRUIT DRINK

SEGMENT
DABUR REAL
Daubers flagship brand real fruit juice is a market leader in packaged fruit juice category.
Real was launched in 1996 and the brand has carved a niche for itself by claiming to be the
only fruit juice in packaged form .i.e.100%preservative free. Real, with market share of 57%
comes in nine flavours:

Orange
Mango
Pineapple
Mix fruit
Grape
Guava
Litchi
Tomato
Cranberry

Real Active is 100%fruit juice with no added sugar and is available in following variants:
23

Orange
Apple
Orange- carrot

GODREJ
The food division of godrej industry produces and market fruit drinks, fruit nectar and soft
soymilk. Godrejs brand JUMPIN comes in the following flavour:

Mango
Pineapple
Apple
Litchi
Orange

Godrejs xs is a range of fruit nectar with more fruits. Its available in following flavours:

Orange
Apple
Grape

PEPSIS TROPICANA
Tropicana brand fruit juice enjoys a market share of 25% and has registered a double digit
growth and has outpaced the growth of fruit juice market in India. It is available in following
flavors:

Orange
Apple
Grape
Cranberry

LEH BERRY
It is a product from Ladakh Foods. Its first fruit juice in Delhi and it's selling it in the more
affluent parts of town. It enjoys a market share of 4% and is available in a variety of flavours:

Pineapple
Apple
Mixed fruit
Orange
Blackcurrant
24

Mango
Guava

PARLES FROOTI and APPY

Frooti was launched back in 1985 and enjoys market dominance with 85% of market share.
Parles Argos APPY, in 1996 had a market share of 5% in the fruit drink segment; in 2003 its
new variant-APPY FIZZ was launched.

RESEARCH METHODOLOGY
METHODOLOGY

25

Every project work is based on certain methodology, which is a way to systematically solve
the problem or attain its objectives. It is a very important guideline and lead to completion of
any project work through observation, data collection and data analysis.
According to Clifford Woody,
Research Methodology comprises of defining & redefining problems, collecting, organizing
&evaluating data, making deductions &researching to conclusions.
Accordingly, the methodology used in the project is as follows: -

Defining the objectives of the study

Framing of questionnaire keeping objectives in mind (considering the objectives)

Feedback from the respondents
Analysis of feedback
Conclusion, findings and suggestions.

PURPOSE OF THE STUDY

The main aim of this research study is to analyze the preference of people (of different age
groups) on consumption patterns of Soft Drinks and Fruit Juices.

OBJECTIVE OF THE STUDY

To study the preferences of the people for soft drinks and fruit juices.

To find out the factor(s) that influences the consumers consumption of soft drinks
and fruit juices.
To test the know-how of the consumers regarding the various existing brands of soft
drinks and fruit juices.
To explore the next best beverage after soft drinks and fruit juices.
To find out how the beverage is positioned in the mind of the consumers.

SCOPE OF THE STUDY

This study is confined to the North West Delhi region covering areas of Paschim
Vihar, Pitam Pura, Rohini area, Punjabi Bagh.
Seasonal drinks are not considered in the study.
We are considering only canned juices.
We are not considering water & alcoholic drinks.

RESEARCH DESIGN
26

A research design is a framework or blueprint for conducting the marketing research project.
It specifies the details of the procedures necessary for obtaining the information needed to
structure and/or solve marketing research problem. On the basis of fundamental objectives of
the research we can classify research design into two general types:

EXPLORATORY RESEARCH
Exploratory research is one type of research design, which has its primary objective the
provision of insights into, and comprehension of, the problem situation confronting the
researcher.

CONCLUSIVE RESEARCH
Conclusive research is designed to assist the decision maker in determining evaluating and
selecting the best course of action to take in a given situation.
Conclusive research can be further divided into two types:

Descriptive
Experimental

The research design used in this project is a DESCRIPTIVE DESIGN.

Descriptive study as the name implies is designed to describe something-for example the
characteristics of users of a given product, the degree to which the product use the varies with
income, age, etc.

SAMPLING TECHNIQUE USED:

This research has used convenience sampling technique.
1) Convenience sampling technique: Convenience sampling is used in exploratory
research where the researcher is interested in getting an inexpensive approximation of the
truth. As the name implies, the sample is selected because they are convenient.

SELECTION OF SAMPLE SIZE:

For the study, a sample size of 50 has been taken into consideration.

SOURCES OF DATA COLLECTION:

Research will be based on two sources:
27

1. Primary data
2. Secondary data

1) PRIMARY DATA:
Questionnaire: Primary data was collected by preparing questionnaire and the people were
randomly being requested to fill them.
2) SECONDARY DATA:
Secondary data will consist of different literatures like books which are published, articles,
internet and websites.
In order to reach relevant conclusion, research work needed to be designed in a proper way.

STATISTICAL TOOLS USED

The main statistical tools used for the collection and analyses of data in this project are:
Questionnaire
Pie Charts
Bar Diagrams

Data analysis
28

NAME:AGE:SEX:-

OCCUPATION :-

Q1. What do you prefer to drink?

(a) Soft drink
(b) fruit juice
(c) Both of the above
(d) none of the above
25

20

15

10

0
Soft Drink

Fruit Juice

Both of the above

Q2. How often do you drink your brand?

(a) Daily
(b) juice a week
(c) Once a week
(d) occasionally
29

None of the above

10

Daily

Juice a week

Once a week

Occasionally

10

30

Q3. On what occasion, do you prefer to consume soft drink?

(a) Feeling thirsty
(b) parties/function
(c) Others, please specify

Column1
20
25
Feeling
Thristy

Parties/function

Others

Q4. On what occasion do you prefer to consume fruit juice?

(a) Feeling thirsty
(b) parties/function
30

(c) Others, please specify

10

10

30

Feeling Thirsty

31

Parties

Others

Q5. Which drink do you like most?

(a) Soft drink
(b) fruit juice

40
40
35
30
25
20
10

15
10
5
0

Soft Drink

Fruit Juice

Q6. What induces you to buy soft drink?

(a) Price with quality
(b) taste
(c) Status symbol
(d) brand ambassador of your choice
5

10

Price with quality

taste
status symbol
brand ambassador of your
choice

30

32

Q7. What induce you to buy fruit juice?

(a) Price
(b) health drink
(c) Flavours
(d) easy availability
35
30
25
20
Column2

15
10
5
0
price

health drink

flavours

easy availability

Q8. What do you prefer other than soft drink or fruit juice?
(a) coffee/tea
(b) shakes (milk/ice cream/fruit)
(c) Lassi
(d) others, please specify

Column1
10

10

Coffee/tea
shakes
lassi
Others

30

33

Q9. How do you rate the below following ?

EXECELLENT GOOD

AVERAGE

CANNED
JUICE
FRESH JUICE

Q10. Why do you prefer soft drink?

(a) Status symbol
(b) to remove your thirst
(b) Easy availability
(d) others, please specify

Column1

Status symbol
20

20

to remove yur thrist

easy availability
others

10

34

Q11. Why do you prefer fruit juice?

(a) Health drinks

(c) Flavours

(b) to remove thirst

(d) others. Please specify

45
40
35
30
25
Column1

20
15
10
5
0
health drink

to remove thrist

flavours

35

others

Q12. Which one of the below is economy?

(a) Soft drink

(b) fruit juice

Column1

Soft drink
fruit juice

36

Q13. Does advertisement effect your purchase?

(a) Yes
(b) no

Column2

yes
no

Q14. Name any three of yours favourite brand?

(a)..(b).(c)

Q15. Name of any three of your favourite brad in soft drink?

(a)(b).(c)
..

37

Q16. Which one is more hygienic?

(a) Soft drink

(b) fruit juice

Series 1
60
50
40
Series 1
30
20
10
0
soft drink

fruit juice

38

Q17. With whom you prefer to drink fruit juice?

\(a) Alone
(c) Friend

(b) family
(d) others, please specify

35

30

25

20

15

10

0
alone

family

friend

39

others

Q18. With whom you prefer to drink in soft drink?

(a) Alone
(b) family
(c) Friend
(d) others, please specify

Series 1
100%
90%
80%
70%
60%

Series 1

50%
40%
30%
20%
10%
0%
alone

family

friend

40

others

Q.19 which advertisement influences you to buy the drink?

(a) Television advertisement
(b) print advertisement
(c) Others, please specify

Column1

television
print
others

Q20. Are you aware of the offer available on the drink ?

(a) Yes
(b) no

41

Column1

yes
no

Conclusion-

Energy drink is preferred by more number of males than females whereas females
prefer juices more than energy drinks.

Population below 15 years loves juices and a very close ratio between energy drink
and juice consumers are in the age group of 16-45 years.

People with monthly income of 30000 and above consume more energy drinks.

Students prefer juices whereas a 1:1 ratio of preference of energy drinks and juices
exits between business and service class people.

People consume energy drinks most on weekly basis whereas juices on fortnight
basis.

Juices are preferred early morning and late-night whereas energy drinks are preferred
throughout the day.

Energy drinks and juices will be referred on an equal basis to others whereas juice
consumers are much more appeherent for the same.

People who consume both energy drink and juices on daily basis will suggest the
same to others (strong correlation)

42

People with monthly income in range of 20,000 to 30,000 consume health drink and
juices on a daily basis.

For juices easy availability, health benefits, nutrient value and price considered as a
common entity whereas for energy drinks easy availability, health benefits, nutrient
value and taste.

Real ranked one in consumer among juices.

Gatorade ranked one in consumer among energy drink.

SUGGESTIONS

With the changing lifestyle, people have started becoming more health conscious.
Therefore, the fruit juice companys should use appropriate marketing techniques
thereby reducing the demand for soft drink in the future.
The survey shows that parties/celebrations are the places where these drinks are
consumed mostly. The companys must try to increase the sales by creating and
focusing on more utilities so that their product is used more frequently.
As it is seen that people consider canned juices to be healthy with preservatives.

This shows that awareness level of the people is low and needs to be corrected. Therefore,
various methods like campaigns by government, help by media, etc can be taken to change
this.

43

LIMITATIONS

The study was confined to some areas of mumbai only.

The study does not take into account the sales affected of the soft drink segment due
to the entry of juices.
Retailers view and the companies view to the questionnaire were not available.
Time and cost constraints were also there.
Chances of some biasness could not be eliminated.
A Samples size of 100 has been use due to time

44

BIBLIOGRAPHY-:

WEBSITES:

http://www.euindiaaviationsummit.com/health-drinks/
http://www.naturalnews.com/soft_drinks.html
http://www.the-infoshop.com/topics/FD14_en.shtml
www.foodindustryindia.com
http://en.wikipedia.org/wiki/Beverage
http://www.foodindustry.com/newfood/detailnews.jsp?n=Xtazy,
%20another%20energy%20drink%20for%20the%20Indian
%20market&id=598

45

BOOKS:

Malhotra . N.K, Marketing Research Fifth edition.

Kothari C R, Research and Methodology- Methods & Technique,

New Age International (P) Ltd.,2004

Questionnaire
NAME :AGE :SEX :-

OCCUPATION :-

Q1. What do you prefer to drink ?

(a) soft drink

(b) fruit juice

(c) both of the above

(d) none of the above

Q2. How often do you drink your brand ?

(a) daily

(b) juice a week

(c) once a week

(d) occasionally

46

Q3. On what occasion , do you prefer to consume soft drink ?

(a) feeling thirsty

(b) parties/function

(c) others, please specify

Q4. On what occasion do you prefer to consume fruit juice ?
(a) feeling thirsty

(b) parties/function

(c) others, please specify

Q5. Which drink do you like most ?
(a)soft drink

(b)fruit juice

Q6. What induces you to buy soft drink ?

(a) price with quality

(b) taste

(c) status symbol

(d) brand ambassador of yourchoice

Q7. What induce you to buy fruit juice ?

(a) price

(b) health drink

(c) flavours

(d) easy availability

Q8. What do you prefer other than soft drink or fruit juice ?
(a) coffee/tea

(b) shakes(milk/ice cream/fruit)

(c) lassi

(d) others, please specify

47

Q9. How do you rate the below following ?

EXECELLENT GOOD

AVERAGE

CANNED
JUICE
FRESH JUICE

Q 10. Why do you prefer soft drink ?

(a) status symbol

(b) to remove your thirst

(b) easy availability

(d) others, please specify

Q11. Why do you prefer fruit juice ?

(a) health drink

(b) to remove thirst

(c) flavours

(d) others. Please specify

Q12. Which one of the below is economy ?

(a)soft drink

(b) fruit juice

Q13. Do advertisement effect your purchase ?

(a)yes

(b) no

Q14. Name any three of yours favourite brand ?

48

(a)..(b).(c)

Q15. Name of any three of your favourite brad in soft drink ?

(a)(b).(c)
..

Q16. Which one is more hygienic ?

(a)soft drink

(b) fruit juice

Q17. With whom you prefer to drink fruit juice ?

(a) alone

(b) family

(c) friend

(d) others, please specify

Q18. With whom you prefer to drink in soft drink ?

(a) alone

(b) family

(c) friend

(d) others, please specify

Q.19 Which advertisement influence you to buy the drink ?

(a) television advertisement

(b) print advertisement

49

(c) others, please specify

Q20. Are you aware of the offer available on the drink ?

(a)yes

(b) no

50