impact of temperature on cold drink sales

5/27/2018 Impact of Temperature on Cold Drink Sales

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ASSESSMENT REPORT

ON

IMPACT OF RISING TEMPERATURE ON

THE SALE OF SOFT DRINKS

SUBMITTED BY

Shubham Kapila

Roll No. 7

Class: XI (Commerce)

ST. PETERS ACADEMY, PATIALA


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ABSTRACT

Soft Drinks were common preference among all the individuals before juices were bein

introduced. With the changing lifestyle and income levels, people are shifting their consumptio

patterns and have therefore become more health conscious thus leading to increase in demand o

juices.

The study focused on the assessment of impact of rising temperature on the sale of soft drink

and on the basis of different age group of people living in Patiala city. The study starts wit

determining the major factors affecting the consumption pattern of soft drinks, and ends up with th

conclusion as per the state of mind of the average rational human being. The study also remarked th

frequency of consuming soft drinks due to increase in temperature specially in summers.


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1. INTRODUCTION

The beverage market is worth $55 billion worldwide. Todays consumers are concernedwith overa

health and wellness. As a result, there is significant impact on food and beverage purchases. Man

studies have shown that consumers are as concerned with good health as they are about maintaining

high quality of life. The soft drink industry is training people to seek out new products, even the bi

guys are coming out with limited edition flavors, and consumers are beginning to see that there i

more flavor activity going on in the category. Whether that really nets anybody any sales gains

another thing, butit is teaching consumers to seek out and try new products. It is also trying to creat

some excitement there.

In spite of several challenges and restrictions faced by this industry, it is a roll like never befor

Customer preferences may have shifted, but they are still always on the look out for a can of coke o

a new flavored drink to quench their thirst.

The size of the Indian food processing industry is around $ 65.6 billion, including $20.6 billion o

value added products. Of this, the health beverage industry is valued at $230 million (The Great India

Bazaar). A health aware nation and a rising interest in maintaining and improving human life are just

few reasons why fruit and vegetable demand has risen. Campaigns such as "5 A Day" promoted by th

World Health Organization (WHO) encourage people to consume five fruits or vegetables per day

The food industry has responded to this demand by developing fresh and nutritional products wit

conservation techniques that extend the shelf life of the product (Deliza, 1999).

Recent studies have shown that consumers from the developing countries spend almost 40% of the

income on food and beverages. On the other hand consumers in developed countries allocate onl

about one quarter of their income on these goods (Selvanathan & Selvanathan, 2003); (Chen, 2001).

The three largest consumed categories of packaged foods are packed tea, biscuits and soft drinks. Th

total soft drink (carbonated beverages and juices) market is estimated at 284 million crates a year or $

billion (The Great Indian Bazaar). The market is highly seasonal in nature with consumption varyin

from 25 million crates per month during peak season to 15 million during off-season. The market i

predominantly urban with 25 per cent contribution from rural areas. Coca cola and Pepsi dominate th

Indian soft drinks market.

Today the majority of fruit juice products target children; however there is a need for a nutritiona

drink for the adult. The purpose of this study is to develop a better understanding of consumer

consumption pattern of soft drinks and fruit juice as well as the factors that affect these preferences.


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1.1 INDIAN SOFT DRINK MARKET

In 2013, the Indian soft drinks market

registered a stronger double digit off-trade

value growth rate than the compoundannual growth rate (CAGR) for the past

five years.

This growth was attributable to strong

double-digit performances in categories,

such as bottled water and fruit/vegetable

juice, which had a good year due to rising

mercury levels. Long summers and higherdisposable incomes continue to be the main

growth drivers of soft drinks.

In carbonates, 2012 proved to be a year of

brand revival, especially among the leading players, such as Coca-Cola and PepsiCo. A revamp of ol

brands started with Coca-Cola when it revived its Citra brand in lime carbonates. In August 2012 th

company also revived its RimZim brand. Similarly PepsiCo revived its Duke brand in India

Revival of old brands started with Coca-Cola when it reintroduced its old Citra brand within lim

carbonates. Citra was quite popular in the past due to its high advertisement with the tagline "Citr

super cooler". This brand was revived in February 2012 and was priced 20% cheaper than Coca

Colas existing brands Sprite and Limca also in lime carbonates. In August 2012 the company als

revived its old brand RimZim, a "masala soda" flavoured with cumin and other spices. The brand wa

re-launched in a few selected towns in Punjab, Haryana and parts of Delhi.

1.2 LIST OF INDIAN SOFT DRINK BRANDSSoft drinks are first choice to make us chill in summers and

always included in menu of every party or occasion, as a well

come drink. Find here list of top 20 Indian soft drinks brands.

1. Appy Fizz by Parle2. Banta (lemon-flavoured soft drink)3. Bovonto (grape soda produced by Kali Mark)4. Campa Cola (popular Indian soda introduced in 1977)
http://2.bp.blogspot.com/-Y52nxe05QP0/UR3yBL2SokI/AAAAAAAAChM/TO1-7xBLP7Y/s1600/soft+drink+brands.jpghttp://2.bp.blogspot.com/-Y52nxe05QP0/UR3yBL2SokI/AAAAAAAAChM/TO1-7xBLP7Y/s1600/soft+drink+brands.jpg


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5. Frooti (mango-flavoured drink from Parle Agro)6. Gold Spot7. Grappo Fizz8. Guptas (8 flavoureds soft drinks introduced in 1947)9.

h2o (powered carbonated soda)

10. Juicila (Powdered Soft Drink Concentrate available in Orange, Mango, Lemon, Cola,Masala, Jaljira )

11. Limca (lemon-lime soda)12. LMN (lemon drink produced by Parle Agro)13. Duke's Mangola and Lemonade (Dukes bought by PepsiCo)14. Maaza (mango drink from Parle bought by Coca-Cola)15. Oneday Mango Mastana, Jeera Fresh & Club Soda16. Rasna (powdered soft drink)17. Real (fruite juice from Dabur)18. rio-fusion drink19. Thums Up (Cola drink)20. 777 (soft drink) (Panner,Cola,Orange,Lemon,Clear Lemon Lime,Mango)

1.3 SALES IN SUMMERS

Summertime brightens the outlook for beverage business.

Add to the list of positive factors the resumption of political activities and market expansion i

suburbs and rural areas. Sales are rising with processors expecting the market to grow between 1

percent and 20 percent this year, if the economy does not suffer a big blow from the global recessio

in the second half of 2013.

People drink more to have a respite from the heat wave. Supplies were much ahead of the Marc

target. The April scenario was the same. Besides Pepsi products, including clear drink 7up, beverage

such as Coca Cola, RC and Mojo mark rises in demand as the heat wave sweeps the country.

Market expansion was driven by factors including favorable weather in the peak summer sales seaso

for soft drinks, demand for stocking mineral water, and the invigoration of the market through new

products.


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2. OBJECTIVES OF THE STUDY

The main objectives of the study are:

1. To study the consumption of soft drinks in summers than in winters.

2. To study the preference of soft drinks than water in summers.

3. To study the choice of soft drink brand easily available in summers.

4. To study the sale and consumption of soft drinks get increased during summers.

5. To study the influence of season on buying soft drinks.


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3. RESEARCH METHODOLOGY

Research Plan

The research study is exploratory in nature

Data Collection:

The Core finding of the study was based upon the information collected through primary data i.e

information was collected from respondent with the help of structured questionnaire.

Mode of Data Collection

The study is based on both Primary and Secondary data which includes

a) Primary Data

The Primary Data was gathered through the direct personal interviews

b) Secondary Data

Secondary Data was gathered from internet.

c) Sample Size

Due to time and resources shortage only 10Samples had taken.

Measurement Technique:

A structured questionnaire is administrated for the purpose of obtaining information from th

respondents.

Sample Plan

Universe:

The universe of the study was Patiala City of Punjab.

Sample Size:

10 respondents were taken for the survey.

Sampling procedure:

In the study the sample was chosen on the basis of Random Sampling as well as convenienc

sample.

Contact Method:

The respondents sampling personally and a structured questionnaire was got filled from them

report questionnaire was prepared to interview the respondents.


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4. DATA ANALYSIS AND INTERPRETATION

1. I consume soft drink when I feel thirsty

Strongly agree agree Undecided disagree Strongly disagree

5 2 1 2 0

2. I prefer drinking soft drinks in parties & celebrations.


6 3 0 1 0

3. I consume soft drinks without any reason (just like that).


2 1 0 3 4

4. I consume more soft drink in summers than winters.


7 3 0 0 0

5. As a health drink (Juices, Squash etc.), I buy soft drink.


4 3 0 2 1

6. I prefer drinking soft drink rather than water in summers.


3 2 0 4 1


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7. My choice of soft drink brand easily available in summers.


6 4 0 0 0

8. Sale and consumption of soft drinks get increased during summers.

Strongly agree Agree Undecided Disagree Strongly disagree

7 3 0 0 0

9. Season influences me to buy soft drink.


5 3 0 2 0

10. I like to drink soft drinks on the rocks (fully chilled).


4 3 2 1 0


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5. CONCLUSION

It has been find out that 5 respondents are strongly agree for consuming soft drinks when they feethirsty, 2 are agree, I is undecided and 2 are disagree.

6 of the respondents are strongly agree that they prefer drinking soft drinks in parties &celebrations , 3 are agree, 1 is disagree.

2 of the respondents are agree that they consume soft drinks without any reason, 1 is disagree, are disagree and 4 are strongly agree.

7 of the respondents are strongly agree that they consume more soft drink in summers than winter3 are agree.

4 of the respondents are strongly agree that as a health drink, they buy soft drinks, 3 are agree, are disagree and 1 is strongly disagree.

3 of the respondents are strongly agree that prefer drinking soft drink rather than water isummers, 2 are agree, 4 are disagree and 1 is strongly disagree.

6 of the respondents are strongly agree that their choice of soft drink brand easily available isummers, 4 are agree

7 of the respondents are strongly agree that sale and consumption of soft drinks get increaseduring summers, 3 are agree

5 of the respondents are strongly agree that season influences them to buy soft drink, 3 are agreand 2 are disagree.

4 of the respondents are strongly agree that they like to drink soft drinks on the rocks (fullchilled), 3 are agree, 2 are undecided and 1 is disagree.

It shows that demand of soft drinks rise in summers.


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BIBLIOGRAPHY

[

Beverage Industry of Indiahttp://businesstoday.intoday.in/story/a-rough-summer-for-pepsi-in-india/1/196312.html

Indian Soft Drink Markethttp://www.companiesandmarkets.com/News/Food-and-Drink/Indian-soft-drinks-market-driven-

by-the-increase-in-celebrity-endorsements/NI7782

List of Indian Soft Drink Brandshttp://top-20-in-india.blogspot.in/2013/02/list-of-indian-soft-dring-brands.html

Sales in Summershttp://archive.thedailystar.net/newDesign/news-details.php?nid=86380
http://businesstoday.intoday.in/story/a-rough-summer-for-pepsi-in-india/1/196312.htmlhttp://businesstoday.intoday.in/story/a-rough-summer-for-pepsi-in-india/1/196312.htmlhttp://www.companiesandmarkets.com/News/Food-and-Drink/Indian-soft-drinks-market-driven-by-the-increase-in-celebrity-endorsements/NI7782http://www.companiesandmarkets.com/News/Food-and-Drink/Indian-soft-drinks-market-driven-by-the-increase-in-celebrity-endorsements/NI7782http://top-20-in-india.blogspot.in/2013/02/list-of-indian-soft-dring-brands.htmlhttp://archive.thedailystar.net/newDesign/news-details.php?nid=86380http://archive.thedailystar.net/newDesign/news-details.php?nid=86380http://archive.thedailystar.net/newDesign/news-details.php?nid=86380http://top-20-in-india.blogspot.in/2013/02/list-of-indian-soft-dring-brands.htmlhttp://www.companiesandmarkets.com/News/Food-and-Drink/Indian-soft-drinks-market-driven-by-the-increase-in-celebrity-endorsements/NI7782http://www.companiesandmarkets.com/News/Food-and-Drink/Indian-soft-drinks-market-driven-by-the-increase-in-celebrity-endorsements/NI7782http://businesstoday.intoday.in/story/a-rough-summer-for-pepsi-in-india/1/196312.html


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ANNEXURE: QUESTIONNAIRE

Name: _________________________ Gender: _________Age: ___________________

1. I consume soft drink when I feel thirsty

Strongly Agree Agree Undecided Disagree Strongly Disagree

2. I prefer drinking soft drinks in parties & celebrations.


3. I consume soft drinks without any reason (just like that).


4. I consume more soft drink in summers than winters.


5. As a health drink (Juices, Squash etc.), I buy soft drink.


6. I prefer drinking soft drink rather than water in summers.


7. My choice of soft drink brand easily available in summers.


8. Sale and consumption get increased during summers.


9. Season influences me to buy soft drink.


10. I like to drink soft drinks on the rocks (fully chilled).


impact of temperature on cold drink sales

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