Consumer Buying Behavior
Consumer Buying Behavior
Consumer Buying Behavior
FOR
SHANTILAL CHAPANERIA
SUBMITTED BY:
PRAJAPATI AVINASH D.
Enrollment no
SUBMITTED TO:
S R LUTHRA INSTITUTE OF MANAGEMENT
MTB COLLEGE CAMPUS, NEAR ADARSH SOCIETY,
ATHWALINES, SURAT – 395001
JULY – 2010
2009-2011
1
Declaration
Date: -
Place: - Surat
______________
Mr. Avinash D. Prajapati
2
Acknowledgement
_______________________________________________________________________
_
Project work is tedious work moment of joy & frustration interwoven in it. Many
people have stood by me to my work completion. As a gesture of heartfelt thanks, I
would like to express few words.
Last but not least, I thank to all those who have helped me directly or indirectly
during the course of this project.
3
EXECUTIVE SUMMARY
_______________________________________________________________________
It is an exacting moment for me to present this project report. The proper care was
taken while organizing the project report so that it is easy to read and understand about
my survey on “Consumer Buying Behavior of Ganesh” in Bardoli region.
Ganesh product is one of the drinks used almost in Bardoli, Valod and Mahuva. It
is excellent source for the thrust. The Ganesh Soda Factory is one of the largest processed
beverage industries and its production has been steadily increasing. This study was
conducted to know the people buying behavior and consumption pattern towards soft
drink in Bardoli city, as all people is the target customer of the Ganesh. It is desirable to
have few insights about their buying behavior and consumption pattern. People enjoy
drinking soft drinks as energy drink at the time of snack and social occasion generally.
4
INDEX
1 Industry Profile 2
2 Company Profile 6
3 Research Methodology 18
- Objective of the study
- Research design, Sample design, Data
collection tools
- Limitation of study
5 Findings 35
6 Conclusion 36
7 Recommendation 37
8 Bibliography 38
9 Questionnaire 39
5
TO WHOMSOEVER IT MAY CONCERN
This is to certify that the project entitled “consumer buying behaviour of Ganesh Soda
Factory”” is a genuine Interim report carried out by “Avinash Prajapati” of S. R. Luthra
Institute of management, Surat at Bardoli, Surat.
He has given good performance through out the training period. I wish him all the best
for his bright career.
Shantilal V. Chapaneriya
6
CHAPTER – 1
Introduction
Industry Profile
Company Profile
7
Industry Profile
Soft drinks by definition are carbonated drinks that are non-alcoholic. Carbonated soft
drinks are also refereed to as soda, soda pop, pop, or tonic. The Soft Drink Industry
consists of establishments primarily engaged in manufacturing non-alcoholic, carbonated
beverages, mineral waters and concentrates and syrups for the manufacture of carbonated
beverages. Establishments primarily engaged in manufacturing fruit juices and non-
carbonated fruit drinks are classified in Canned and Preserved Fruit and Vegetable
Industry. Principal activities and products:
• Aerated waters;
• Carbonated beverages;
• Mineral and spring waters;
• Soft drink concentrates and syrup; and
• Soft drink preparation carbonating.
History
8
1970 Plastic bottles are used for soft drinks.
1973 The PET (Polyethylene Terephthalate) bottle created.
1979 Mello Yello soft drink is introduced by the Coca Cola company as competition
against Mountain Dew.
1981 The "talking" vending machine invented.
The major ingredient in a soft drink is water. It constitutes close to 90% of the soft drink
content. Added to this, the drink also contains sweeteners, Carbon dioxide, Citric
Acid/Malic acid, Colors, Preservatives, Anti Oxidants and other emulsifying agents, etc.
A soft drink is a beverage, often carbonated, that does not contain alcohol. (Carbonated
soft drinks are more commonly known as soda, pop, tonic, or soda pop in parts of the
United States and Canada, or fizzy drinks in the U.K. sometimes called minerals in
Ireland) The name "soft drink" specifies a lack of alcohol by way of contrast to the term
"hard drink". The term "drink", while nominally neutral, often carries connotations of
alcoholic content. Beverages like colas, sparkling water, iced tea, lemonade, squash, and
fruit punch 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.
9
Types of soft drink in India:
Soft drinks are available in glass bottles, aluminum cans and PET bottles for home
consumption. Fountains also dispense them in disposable containers Non-alcoholic soft
drink beverage market can be divided into fruit drinks and soft drinks. Soft drinks can be
further divided into carbonated and non-carbonated drinks. Cola, lemon and oranges are
carbonated drinks while mango drinks come under non carbonated category.
The market can also be segmented on the basis of types of products into cola products
and non-cola products. Cola products account for nearly 61-62% of the total soft drinks
market. The brands that fall in this category are Pepsi, Coca- Cola, Thumps Up, diet
coke, Diet Pepsi etc. Non-cola segment which constitutes 36% can be divided into 4
categories based on the types of flavors available, namely: Orange, Cloudy Lime, Clear
Lime and Mango.
The market preference is highly regional based. While cola drinks have main markets in
metro cities and northern states of UP, Punjab, Haryana etc. Orange flavored drinks are
popular in southern states. Sodas too are sold largely in southern states besides sale
through bars. Western markets have preference towards mango flavored drinks. Diet coke
presently constitutes just 0.7% of the total carbonated beverage market.
10
Growth promotional activities:
The government has adopted liberalized policies for the soft drink trade to give the
industry a boast and promote the Indian brands internationally. Although the import and
manufacture of international brands like Pepsi and Coke is enhanced in India the local
brands are being stabilized by advertisements, good quality and low cost.
The soft drinks market till early 1990s was in hands of domestic players like campa,
thumps up, Limca etc but with opening up of economy and coming of MNC players
Pepsi and Coke the market has come totally under their control.
11
COMPANY PROFILE
The Foundation:
The foundation was laid when a young boy in his teens-Vitthalbhai Mangubhai
Chapaneriya -began his career selling aerated soft drinks made by Surat Hind Soda
Factory. Shantilal son of Vitthalbhai had the tremendous vision to prove the competence
of Indian brands.
12
It was this vision that laid the foundation of a new era in the Indian soft drink
industry in the form of Ganesh Soda Factory which was to later come out with one of the
phenomenal brands in Bardoli-Ganesh.
The brand name-Ganesh-was derived from the name of god. The brand has been
given a new, contemporary look ever since it’s repositioning as a speciality drink in
November ’99 with the catchy base line “TASTE OF LIFE”.
In the last few years it has been seen that the consumption of carbonate beverages
has grown in every segment of the market and it is consumed more people and the
forecast do not show its showing down. Not only market has grown, consumption per
head has also increased. The company is looking for its growth desirous, progressive with
an open mind and ready to take on challenges.
13
Quality Approach:
We understand that our market and our industry are fast changing and we accept
that change and it brings the opportunity to grow and improve. That’s why we are
proactive in raising new ideas and encouraging innovation in everything we do. The new
Product introduce is gatagat ready to drink sorbet in three flavour Mango, Limbupani,
Kalakhatta.
14
- Behaving with integrity and honesty:
We operate our business in the same way we lead our personal life. We are
honest, open and generous. This is a moral choice – but it is also a commercial
imperative. Our market reputation depends on how we behave.
To maintain the trust and confidence of our customers, suppliers, colleagues and
employees we act with integrity at all times. And by acting with integrity, we in turn get
the best from others.
Factory
15
Retailers
Consumers
16
CHAPTER – 2
Main Studies
Introduction of the Topic
17
Consumer Buying Behavior:
Definition of consumer buying behavior:
The aim of marketing is to meet and satisfy target customer needs and wants. The field
of Consumer behavior shows how individual, group and organizations select, buy, use
and dispose of goods, services, ideas or experience to satisfy their needs and desires.
18
2. Reducing buying behavior:
After the purchase the customer might experience dissonance that stems from noticing
features or favorable things about other brands. So a marketer should provide supportive
information which buyer feels satisfied.
19
1. Culture Factors:
Culture:
Culture is most important and fundamental determinant of a person’s want and behavior.
A person acquires a set of values, perceptions, preference and behavior through his or her
family and it leads to behave him a particular way.
Subculture:
Each culture is divided into a smaller sub culture. It includes nationalities, religion, social
and geographic region. There buying process is affected.
Social class:
The social classes refer to several homogeneous groups within society. There is a cast
system where the members of different cast behave in different pattern and can not
change their behavior. People of the same caste are motivated by similar marketing
appears.
2. Social Factor:
Consumer is influence by such social factor as reference group, family, social role and
status.
Reference group:
Means a group that have a direct and indirect influence on person’s attitude or behavior,
e.g. family, neighbors, friends and they influence in a new behavior, life style, concept,
attitude for a product. E.g. Trousers, Skin fitter, etc.
Family:
From parent a person acquire an orientation towards religion, policies, economics,
ambition, love and gain once life or children will have influence.
Roles and status
Influence by clubs, organization, if he or she member. He or She influenced by status e.g.
Vice president have Mercedes, wears suits, etc.
20
3. Personal factor:
Buyers decision are affected by age, occupation, life styles
1. With the age purchase decision regarding the products change
2. Occupation also plays an important role e.g. workers will buy cloths which would
be more useful in his work.
3. Life style also leads him to behave on a particular manner
4. Personality of a person will make him to think in a particular way.
4. Psychological factor:
Major psychological factor that influence the person are motivation, perception learning,
belief, and attitude.
Motivation:
Theories that emphasize on the factors which motivate the customer Hezberg’s theory:
Psychological needs like food, water, and shelter, safety needs like securities and
protection, social needs like sense of belong ness, and love, esteem needs and self
actualization also affect.
Knowledge:
Knowledge is defined as an individual’s state of awareness and understanding of a
person, group, object institution and ideas. It is necessary in designing of marketing
activities and also awareness should be there.
Attitude:
Attitude is also important to determining behavior. Attitude means to feel or act in a
given manner towards a person, group, objects, and ideas. Customer’s attitude,
understanding and awareness of the product are intimately related. A customer giving
preference for a particular product shows his attitude.
21
Image:
Product image also play equally important role. In determing the types of image for a
product, It is also important to decides the distinctiveness of the image. The image of the
product, company is established in purchaser’s mind which affects the consumer buying
decision.
Intention:
It refers to the anticipated future action of the customer. The plan of the family to
purchase car, and the plan of an organization for the forth coming year are example of
intention, e.g. booking a car in advance visit to departmental stores to purchase a T.V.
22
CHAPTER - 3
METHODOLOGIES
Objective of Research
Research Methodology
Research measurement tools
23
Research Objective:
SYNOPSIS
1. AREA OF RESEARCH: Marketing
2. RESEARCH TOPIC: Consumer Buying Behavior Of Soft
drink
3. OBJECTIVE OF RESEARCH:
1. To know the consumer buying behavior of soft
drink.
2. To know the consumption pattern of soft drink.
4. RESEARCH METHODOLOGY:
Research Design: Descriptive research design
Sources of Data Collection:
Primary data: I have collected the primary data
from preparing
questionnaire.
24
Secondary data: I have collected the secondary
data from books, magazines and Web sites.
Sample Size: 100 Respondents.
Research Methodology
2. Research design:
Research design is the plan structure and strategy of investigation conceived so as to
obtain answers to research questions and to control variance.
25
Longitudinal
Cross sectional study is concerned with a sample of elements from a given population.
Thus it may deal with households, dealers, retail stores or other entities. Cross sectional
studies are of two types – Field Studies & Surveys. Field studies are ex-post-Fact of
scientific inquiries that aim at findings the relations and inter relations among variables in
a real setting. Such studies are done in life situations like communities, schools, factories,
organizations & institutions. Another type of cross sectional study is the survey research.
The major strength of survey research is its wide scope.
Longitudinal studies are based on panel data and panel methods. A panel is a sample of
respondents who are interviewed & then re-interviewed from time to time.
3. A Causal research is undertaken when the researcher want to know the cause and
effect relationship between two or more variables.
Among the above three method I have selected descriptive research design which
means a form of conclusive research that aims to identify association among variable it
concerned with the characteristic of individual or group.
3. Sampling plan:
When only some representative items of a population are selected and data are collected
only from these items then this method is known as sampling.
1. Sampling size:
It is the basic units of the population to be sampled here in the sample size of 100
respondents are taken for carrying out research because of the limited time.
2. Sample unit:
Sampling units means a specific group which we are going to select for our research.
I took people below the age of 40 years because soft drinks are generally targeted to the
these people.
26
1. Probability sampling.
2. Non-probability sampling.
27
(4) Sample design:
Sample design means to select one particular design through which we are going to
collect data.
There are two ways for sample design:
1. Observation method.
2. Survey.
I have used field survey to collect all the primary data by preparing questionnaire.
Type of questionnaire:
Structured questionnaire
28
Unstructured questionnaire
A structured questionnaire is a formal list of questions framed so as to get the facts. The
interviewer asks the question strictly in accordance with the pre arranged order.
Structured questionnaire will be used because research topic is precisely formulated and
respondents are already known what is to be observed.
Non-disguised questionnaire will be used because they are already known about what
they have to respond.
As I have use both source of collecting data so in primary data through survey method
data are collected and for secondary data through various means like internet, newspaper
and books are used.
Type of Questions:
A questionnaire consists of a set of questions presented to respondents. It needs to be
carefully developed, tested and debugged before they are administered on a large scale.
There are three types of questions:
1. Open ended Questions
2. Dichotomous Questions
3. Multiple Choice Questions
I have used Open ended questions and Multiple question in my questionnaire.
29
Limitation of study:
1. The research is based on the sample size and was limited to bardoli region only it
may or may not be the true representative of the entire population. So it can be
generalized over large population.
2. The time period for research was seven to eight week only, so it was not possible
to do any statistical test on the collected data.
30
CHAPTER - 4
31
Gender:
Male 77%
Female 23%
23%
Male
Female
77%
Interpretation:
Majority of the respondents 77% were male and remaining 23% were
female in the survey
32
Educational Level
Others 15%
15%
25%
49%
Interpretation:
Most of the respondents 49% in this survey were under graduate and 25% are high school
student,11% post graduate and 15% were other.
33
Sources of knowing about brands of soft drinks
No. of Respondents
Content (in %)
Media Source Personal Media Source Personal
Source Source
Television Friends 68 19
Radio Relatives 2 00
Internet Sister 00 00
Newspaper Brother 4 7
80
68
70
no of respondent
60
50
40 no of respondent
30 19
20
4 7
10 2 0 0 0
0
sp e t
Si s
r
R n
F r er
Br t er
In io
el s
he
e
sio
ew rn
R nd
ad
ap
iv
s
ot
N te
ie
at
vi
le
Te
content
Interpretation:
It was found that for 68% of respondents known through television,
and was 19% of the respondents known through the friends, 7% of
respondent were known through the source of their brother and 2% of
the respondent known through the source of radio and 4% known
through newspaper about soft drink brands.
34
Consumption soft drink
No. of Respondents
Content
(in %)
Everyday 17
For a Change 19
Time of Snack 64
17
Everyday
For a Change
19 Time of Snack
64
Interpretation:
It was found that 64% of consumers consume soft drink at the time of
snacks, 19% of the respondents were consume for a change. 17% of
the respondents purchase everyday.
35
Consumption of soft drink according to the age of the
30 - 40 Years 0% 7% 0%
40 - 50 Years 0% 0% 0%
Above 50 Years 0% 0% 0%
respondent
36
60% 55%
50%
no of respondent
40% Everyday
30% For a Chance
20% 14% Time of Snack
9% 7%
10% 6% 6%
3%
0% 0% 0%
0%0% 0%
0%0%
0%
Less 18 - 30 30 - 40 40 - 50 Above
than 18 Years Years Years 50
Years Years
age
Interpretation:
Majority of the respondents between 18 – 30 Years of age consume the
soft drinks as a time of snacks whereas very few respondents consume
it on everyday basis.
No. of Respondents
Content
(in %)
Restaurant 29
Grocery Store 5
Retail outlet 56
Any others 10
37
10
29
Restaurant
Grocery Store
Retail outlet
Any others
56
Interpretation:
It was found that 56% of the respondents were purchase from Retail
outlet, 29% of the respondents were purchase from Restaurant, 5% of
the respondents were purchase from Grocery store and only 10% of
the respondent purchase from others.
No. of Respondents
Content
(in %)
Daily 8
Once in 7 Day 18
Twice in a Week 3
Once a month 71
38
8
18
Daily
Once in 7 Day
Tw ice in a Week
3 Once a month
71
Interpretation:
It was found that 71 % of the respondent buy soft drink Once a month,
18% of the respondents buy once in 7 day, 8% of the respondents buy
daily, and 3% of respondent buy twice in a week
39
Frequency of buying soft drinks
30 - 40 Years 0% 0% 0% 0%
40 - 50 Years 0% 0% 0% 0%
Above 50 Years 0% 0% 0% 0%
60% 54%
50%
40% Daily
Once in 7 Day
30%
Twice in a Week
20% Once a month
9%
10% 4%
3%4%
3% 5% 6% 5% 7%
0% 0% 0%
0%0%
0% 0%
0%0%
0%
0%
Less 18 - 30 30 - 40 40 - 50 Above 50
than 18 Years Years Years Years
Years
Interpretation
Most of the respondents were between 18 – 30 Years of age purchase
the soft drinks whenever they needed.
40
Preferred size to buy
No. of Respondents
Content
(in %)
100 ml. 8
200 ml. 82
500 ml. 7
1.5 liter 3
3% 8%
7%
100 ml
200 ml
500 ml
1.5 liter
82%
Interpretation:
It was found that 82 % of the respondents were preferred 200ml, 8% of
the respondents preferred 100ml, 7% of the respondents were
preferred 500ml and only 3% of the respondent preferred to 1.5 liter.
41
Preferred size of buying Soft drinks
Age
100 ml 200 ml 500 ml 1.5 liter
Less than 18
Years 10% 7% 2% 0%
30 - 40 Years 0% 5% 0% 4%
40 - 50 Years 0% 0% 0% 0%
Above 50 Years 0% 0% 0% 0%
60%
52%
50%
no of respondent
40% 100ml
200ml
30%
500ml
20% 1.5litre
10% 12%
10% 7% 5% 5% 4%
2%0% 3%
0% 0% 0%0%0%0% 0%0%0%0%
0%
Less than 18 - 30 30 - 40 40 - 50 Above 50
18 Years Years Years Years Years
age
Interpretation:
Majority of the respondents were between 18 – 30 Years who preferred
to buy 200 ml size of soft drinks and very few respondents between
18-30 Years and 30-40 Years preferred to buy 1.5 liter size of soft
drinks.
42
No. of Respondents
Content
(in %)
Self 97
Others 3
3%
Self
Others
97%
Interpretation:
It was found that 97 % of the respondents were decided self and only
3% of the respondents were depending on others.
43
nt nt nt
Save Time 7 26 12 26 29
Preferred by elder 12 14 26 24 24
person
Reasonable Price 24 26 22 14 4
Advertisement 25 24 19 13 19
Preferred Flavor 19 26 25 18 12
35
30
Instan Drink
No of Respondent
25
20 Preferred by elder
15 pers on
10 Reas onable P rice
5
Advertis em ent
0
Preferred Flavor
e
nt
nt
nt
ag
nt
rta
ta
rta
rta
er
or
po
Av
po
po
mp
Im
m
Im
tI
tI
t
No
as
os
Le
M
44
Easily Available 28 21 23 16 12
Package 22 25 18 20 15
Attractiveness
Peer Group 16 20 16 26 22
Influence
30
25
No of Respondent
Handy
20 Good Taste
15 Easily Available
10 Package Attractiveness
Peer Group Influence
5
0
e
nt
nt
nt
nt
ag
rta
rta
rta
r ta
er
po
po
po
po
Av
Im
m
Im
tI
tI
t
No
as
os
Le
M
Interpretation:
It was found that most influencing factors while purchasing of soft
drink is price of the product, advertisement of the product, flavor,
tastes and availability of the product.
Chapter – 6
45
Suggestions
Recommendations and suggestion
Bibliography
Conclusion
Questionnaire
Findings:
46
Majority of respondents known through television as the source of
knowing about soft drink brands.
Most of the respondents were purchase the soft drinks from Retail
store and Restaurant.
Most of the respondents buy soft drink when ever they needed, and
very few of the respondents buy daily.
The majority of the respondents were preferred 200ml, and only few
respondents preferred to 1.5 liter.
47
Conclusion:
From the study, it was found that the working population preferred soft
drink as they considered it to be a very convenient in all the beverage.
Generally the student preferred Pepsi and Coca-cola. Most of the
collage students consume soft drinks at the time of snack in the
evening. Most of the students buy from the nearest retail store and
restaurant when ever they needed. 200ml is preferred by the majority
of the sample respondent. The majority of the decision regarding
purchase of soft drink was depending up on self. The important factors
for purchase of soft drinks is easy availability in the nearest retail
stores and also good test of soft drink. Consumers also feel that
‘instant drink’ and ‘Price’ of the soft drink are the most important
factors for buying the soft drink.
48
Recommendation:
Most of the respondents suggested that the company should take care
regarding to packing of soft drink bottle.
49
Bibliography:
Web Site:
1. www.wikipedia.com
2. www.google.com
3. www.answers.com
50
QUISTIONAIRE
Personal Detail
1. Name: _______________________________________________________________
2. Address: ____________________________________________________________
______________________________________________________________
3. Gender: _______________
○ Male
○ Female
4. Age:
5. Educational Level:
(a) Less than 10000 (b) 10000-15000 (c) more than 15000
7. Occupation:
51
Market Survey
○ ○
○ ○
○ ○
○ Television ○Friends
○ Radio ○Relatives
○ Internet ○ Others
○ News paper
○ ○
○ ○
○ ○
○ Yes
○ No
52
○ Yes
○ No
○ Everyday
○ For a change
○ Time of snack
○ Family
○ Children
○ Self
○ Restaurant
○ Grocery stores
○ Retail outlet
○ Any other
○ Taste ○ Price
○Any other
53
10. How frequent do you buy soft drink?
(a) Daily
12. Are you satisfied with the price of your soft drinks?
(a) Yes
(b) No
13. Rate the factors influencing the purchase of the soft drink?
54