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CUSTOMER PREFERENCE OF NIMBOOZ
A Study on the Customer Preference of Nimbooz, Kolkata
Submitted in Partial fulfillment of the requirement for the award of the
Degree of Bachelor of Commerce
from St. Xaviers’ College Kolkata (Autonomous)
By
Kanika Singhania
Roll No. 802
Under the guidance of
Prof. Antara Dutta Sen
Department of Commerce (Evening)
ST. XAVIERS COLLEGE
Kolkata
2008 – 2011
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DECLARATION
I declare that this project titled, “A Study on the Customer Preference of Nimbooz”, is
a record of bona fide research carried out by me under the supervision of Prof. Antara Dutta Sen,
Department of Commerce (Evening), St Xaviers’ College, Kolkata.
I further declare that this has not previously formed the basis of the award of any degree,
diploma or other similar title of recognition.
Place:________________________
Date:_________________________
Kanika Singhania
Roll No:802
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ACKNOWLEDGEMENT
I would like to express my profound gratitude to all those who have been instrumental in
the preparation of this project report. I wish to place on records, my deep gratitude to my project
guide Mrs.Antara Dutta Sen, a highly esteemed and distinguished guide, for her expert advice
and help.
I would like to thank the Dean of the Commerce (Evening) Department Prof. Amitava
Ghosh and the Vice Principal Prof. Rahman.
Lastly, I would like to thank God, my Parents and Friends for their constant help and support.
Kanika Singhania
Roll No: 802
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Chapter Table of Content Pg. Nos.
Chapter I Introduction and Literature Review
Introduction to the Topic 6
Introduction to the Industry 9
Introduction to the Company 25
Introduction to Nimbooz 44
Chapter II Research Design
Title of the project report 59
Statement of the Problem 59
Scope of the Study 59
Objective of the Study 59
Hypothesis Development 59
Methodology 60
o Data Sampling
o Sampling Details
o Tools for Data Analysis
Limitations of the Study 61
Chapter III Analysis and Interpretation 62
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Chapter IV Summary Of Findings 85
Chapter V Recommendations and 86
Conclusion 89
Bibliography 90
Annexures 91
o Questionnaire
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INTRODUCTION TO TOPIC
The beverage industry of India has seen the introduction of new products over the last few years.
PepsiCo launched the lime-lemon drink Nimbooz. The drink is an addition to its 7-up
category with real lemon juice, no fizz and no artificial flavors.
This research is to identify the market performance of one such product that is Pepsi co.’s
Nimbooz.
Market research is any organized effort to gather information about markets or customers.
It is a very important component of business strategy. The term is commonly interchanged
with marketing research; however, expert practitioners may wish to draw a distinction,in
that marketing research is concerned specifically about marketing processes,
while market research is concerned specifically with markets.
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Market Research is the key factor to get advantage over competitors. Market research provides
important information to identify and analyze the market need, market size and competition.
Market research includes social and opinion research, and is the systematic gathering and
interpretation of information about individuals or organizations using statistical and analytical
methods and techniques of the applied social sciences to gain insight or support decision making.
The process of market research included –
Step 1: Problem Definition
The first step in any marketing research project is to
define the problem. In defining the problem, the
researcher should take into account the purpose of the
study, the relevant background information, what
information is needed, and how it will be used in
decision making. Problem definition involves
discussion with the decision makers and analysis of
secondary data. Once the problem has been precisely
defined, the research can be designed and conducted
properly.
Step 2: Development of an Approach to the Problem
Development of an approach to the problem includes formulating an objective or theoretical
framework, analytical models, research questions, hypotheses, and identifying characteristics or
factors that can influence the research design. This process is guided by case studies and
simulations, analysis of secondary data and pragmatic considerations.
Step 3: Research Design Formulation
A research design is a framework or blueprint for conducting the marketing research project. It
details the procedures necessary for obtaining the required information, and its purpose is to
design a study that will test the hypotheses of interest, determine possible answers to the research
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questions, and provide the information needed for decision making. Conducting exploratory
research, precisely defining the variables, and designing appropriate scales to measure them are
also a part of the research design. The issue of how the data should be obtained from the
respondents (for example, by conducting a survey or an experiment) must be addressed. It is also
necessary to design a questionnaire and a sampling plan to select respondents for the study.
Step 4: Data Collection
Data collection handing out questionnaires to respondents for study. It involves a certain level of
interaction with the respondents.
Step 5: Data Preparation and Analysis
Data preparation includes the editing, coding,
transcription, and verification of data. Each questionnaire
or observation form is inspected, or edited, and, if
necessary, corrected. Number or letter codes are assigned
to represent each response to each question in the
questionnaire.
Step 6: Report Preparation and Presentation
The entire project is documented in a written report which addresses the specific research
questions identified, describes the approach, the research design, data collection, and data
analysis procedures adopted, and present the results and the major findings. The findings should
be presented in a comprehensible format so that they can be readily used in the decision making
process.
The project incorporates the analysis of the customer preference of Nimbooz. The research studies
the overall post-launch consumer behavior and analyses the customer preference of Nimbooz.
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INTRODUCTION TO THE BEVERAGE INDUSTRY
A beverage is a drink specifically prepared for human consumption. Beverages almost always
largely consist of water. Drinks often consumed include: Water (both flat or carbonated),Juice
based drinks, Soft drinks, Sports and Energy drinks, Alcoholic beverages like beer or spirits
,Coffee, tea ,Dairy products like milk. Filling of beverages can be done cold, hot, ambient and
cold-aseptic filling to mention the latest trend of beverage marketing and technology.
The beverage is mainly categorized into two major categories based upon the alcoholic and
nonalcoholic nature of the drink:
An alcoholic beverage is a drink containing ethanol, commonly
known as alcohol. Alcoholic beverages are divided into three general
classes: beers, wines, and spirits. They are legally consumed in most
countries, and over 100 countries have laws regulating their
production, sale, and consumption. In particular, such laws specify the
minimum age at which a person may legally buy or drink them. This
minimum age varies between 16 and 25 years, depending upon the
country and the type of drink. Most nations set it at 18 years of age.
A non-alcoholic beverage is a beverage that contains less
than 0.5% alcohol by volume. Non-alcoholic versions of
some alcoholic beverages, such as non-alcoholic beer
mocktails, are widely available where alcoholic beverages
are sold. Non-Alcoholic beverages are further of two types
based upon carbon content.
Carbonated beverages which include sodas, soft drinks
which are “fizzy” and carbonated under pressure.
Non-Carboanted beverages are those that lack any carbon
content these beverages include contain Fruit juices, Coffee, Tea and other flavoured drinks like
lemonade, gigerale etc.
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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 trend setters.
The above graph shows the relative share of all the beverages worldwide. As shown by the above
graph the different beverage sectors can be classified according to importance.
THE CHANGING BEVERAGE INDUSTRY
In order to be successful in the marketplace, one has to think in terms of health innovation,
flavor innovation, ingredient innovation and specific age groups. These are the factors that
will shape the future of the beverage industry.
Today’s 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.
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Beverage Industry have gone deep into the consumer preferences and tastes. The soft drink
industry is training people to seek out new products, even the big companies are coming
out with limited-edition flavors, and consumers are beginning to see that there is more
flavor 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.
The beverage industry has grown drastically in the last 10-15 years. Each year the beverage
manufacturers turnover increase and they continue to introduce new beverages.
The graph shows that the Non carbonated sector is the dark horse which has shown
tremendous growth rate from 1997-2010. With health and wellness being major concerns
and obesity becoming a global issue, the future of the beverage industry is the non
carbonated sector as shown.
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Packaging Technologies
With the increasing global customer base, beverage retailing is transforming. However, with the
move toward globalization, it requires longer shelf life, along with monitoring food safety and
quality based upon international standards. To address these needs, nanotechnology is enabling
new food and beverage packaging technologies. Applications in nano-enabled packaging span
development of improved tastes, color, flavor, texture and consistency of beverages, increased
absorption and bio-availability of nutrients and health supplements, new food packaging
materials with improved mechanical, barrier and antimicrobial properties.
According to a study by iRAP, Inc. , the total nano-enabled food and beverage packaging
market in the year 2008 was US$4.13 bln, which is expected to grow in 2009 to US$4.21 bln
and forecasted to grow to US$7.30 bln by 2014, at a CAGR of 11.65%. Active technology
represents the largest share of the market, and will continue to do so in 2014, with $4.35
billion in sales.
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 ‘flavored’ drink to quench their thirst
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INDIAN BEVERAGE MARKET
India has a population of more than 1.15 Billions which is just behind China. According to the
estimates, by 2030 India population will be around 1.450 Billion and will surpass China to
become the World largest in terms of population. Beverage Industry which is directly related
to the population is expected to maintain a robust growth rate. The price stability
throughout the year has contributed to the increase in domestic liquor sales.
India is a booming market for the beverage industry. It already accounts for about ten per cent of
global beverage consumption today. This means that the country has the third-largest
beverage consumption after the USA and China. But that is not the end of the road. Market
analyses indicate that beverage sales in India will be increasing by more than 60 per cent
between 2008 and 2012. Since India is a country of tea and coffee drinkers, packaged cold drinks
have enormous potential. Packaged water, beer, spirits and carbonated drinks are recording what
rates are in some cases high double-digit growth. All in all, annual per capita consumption of
packaged beverages is supposed to triple from 2.6 litres in 2000 to 8.7 litres in 2012.
The total carbonated beverages and juices market is estimated at 284 million crates a year.
The market is highly seasonal in nature with consumption varying from 25 million crates
per month during peak season to 15 million during offseason.
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REASONS FOR GROWTH:
In India, various positive factors drive the beverage markets. One is the rising number of
people in the middle class with extra money to spend on new beverages like wine, new
brands of imported whiskey, or the fancy energy drinks, some of which are really good to
enable people to work longer, to listen longer during conferences, and even to party longer
and have fun.
Economic drivers: With strong economic drivers of consumer spending, India is a very
different market from that of the 1980s or 1990s.With a GDP of USD800 billion and a GDP
growth rate in 2005-06 of over 8 percent, India is now the third largest economy in Asia.
Average GDP growth of the last 10 years has been 6.5 percent per annum. And most
significantly, the stepping up of GDP growth is driven primarily by domestic demand rather than
exports.
Demographic drivers: Macro There are compelling demographic trends in the country that
promise new and sustained opportunities for beverage product suppliers who can read right the
signals.
The country boasts an expanding middle class that is currently 350 million strong (a population
larger than that of the USA or the European Union).The rapid growth in the retail sector (over
20 percent per annum) is a confirmation of the increasing buying power of the middle
class.
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FRUIT BEVERAGE INDUSTRY:
The Indian beverage market offers hot options. The fruit beverages industry in India now
stands at Rs 1100 crores (approx. Euro 180 million)
and the market has grown at the rate of 30%.
Part of the industry of fast moving consumer goods is
also the beverage industry. The total beverage industry
in India is being estimated to grow at 17% this year,
according to experts. Food and beverages segment has
not suffered despite the slowdown in the economy.
FMCG in stores has done very well. In fact, it registered
10-15% growth in this segment last year.
CARBONATED BEVERAGE INDUSTRY
Approximately 120 billion liters of beverages are
consumed by Indians every year, but only 5%
represent store-bought packaged beverages. The
majority of Indian consumers (75%) still consume
non-alcoholic store-bought beverages ‘less than once
a day’, highlighting a large untapped market
opportunity, particularly in the carbonated drinks
and juice or juice-based categories (estimated to be worth $1.5 Billion and $.25 billion
respectively). In order to increase consumption and penetration of such beverages manufacturers
will have to address the two primary reasons why some Indians abstain entirely, that is, health
concerns and undesirable taste
Beverage majors like Coca Cola India, for example, again reported growing sales. Coca-Cola in
India reported a solid first quarter 2009 results not only despite a challenging economic
environment, but also with unit case volume increasing by 31%. And eight quarters out of the 11
quarters had a double-digit growth.
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. MILK BASED BEVERAGES
Demand for milk and milk-based beverages are also
rising. India is the world’s biggest producer and
consumer of milk, since milk plays a major role in the
Indian diet. The consumption of milk and milk-based
beverages has increased by an annual average of 2.7
per cent in the last four years and most of them (65 per
cent) are sold “loose” / unpackaged. The proportion of
the market accounted for by packaged milk and dairy
products are increasing, however. In the past four years,
for example, demand for milk filled in pouches has grown by 4.5 per cent annually, while the fi
gure for milk in cartons is about 25 per cent. The rising consumption is making it necessary for
appropriate investments to be made by the beverage industry.
The sector is highly fragmented and 95 per cent of these producers have small or very small
operations. Of this, the health beverage industry is valued at $230 million.
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. 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. Increasingly packaged
coffee is becoming extremely popular and so is the “cafeteria culture” as promoted by
Barista and Café Coffee Day.
PACKAGED WATER
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Though not technically a beverage. Packaged mineral water is also
considered to be a part os the Beverage Industry.Mineral water
market in India is a 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.
BEVERAGES FOR HEALTH AND WELLNESS IN INDIAN MARKET
The global health and wellness trends in the beverage sector are beginning to notice an
increasing level of activity in India.
There is today a growing health and wellness consciousness among
consumers and an increasing importance given to fitness and healthy
lifestyle choices. Changing work and lifestyle habits leave less time for
home cooking and therefore spur demand for convenience and
‘complete nutrition’ from meal replacements. There is a greater
inclination to ‘self-care’ rather than ‘medicate’, a greater awareness of
the ‘functional’ benefits of health beverages and a greater willingness to
pay a premium for such beverages.
RESPONSE TO HEALTH AND WELLNESS
With these strong drivers of growth, it is not surprising that the beverage
industry in India has begun to respond with products that are marketed clearly
on a health and wellness platform.However, to set the record straight, ‘health
and wellness’ is not a wholly new platform for the Indian market. India has,
for decades, had a thriving health food drinks market. Market leader, GlaxoSmithKline
Consumer Healthcare (GSKCH), has had iconic brands ‘Horlicks’, ‘Boost’, ‘Viva’ and
‘Maltova’ create 'top-of-the-mind' recall across generations of Indians.The fact is that there has
all along been a strong multinational presence in beverage market and more recently this has
been witnessing the emergence of Indian ‘multinationals’ across this sector.
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However, much of the marketing for health food drinks in the past has been general health and
energy positioning, rather than the focus on specific benefits or ingredients that is characteristic
of most mature health food markets. This is now changing and the specific initiatives of some
companies are going a long way to creating a truly dynamic health and wellness beverage sector
in India.
Global market leader in Probiotic fermented milk drinks, Yakult, has teamed up with Danone to
start manufacturing its probiotic fermented milk drink in India from 2007. Calcium-fortified
beverages are a rapidly growing market.
Some examples of brands that have introduced calcium-fortified products are ‘Amul
Shakti’, Coca-Cola India’s ‘Mazza’, GCMMF launched sports drink 'Stamina' in early
2006. ‘Red Bull’ was launched in India in 2003.
Carbonated beverage giants Coke and Pepsi have also planned to widen their product portfolio
with ‘health-based’ beverages (non-carbonated). Pepsi’s ‘Gatorade’ is already on the market.
And in what must be among the most significant recent commercialization efforts of a traditional
Indian drink, ‘Amul Masti’ Spiced Buttermilk was launched (in a 200 ml tetra pack), marketed
on the platform of being free of colour, preservatives, acids and sucrose sugar.
SUMMARY:
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Indian Beverage Market CAGR[2007-2010]:21%
India ranked 3rd in largest beverage consumption after the USA and China
Total Indian Beverage Consumption every year:120 billion liters
Fruit Beverages Market size: Rs 1100 crores (approx. Euro 180 million)
Fruit Beverage market growth rate: 30%
Majority of Indian consumers:75% consume Non-alcoholic beverages and 25%
Alcoholic Beverages
Carbonated Drinks Market size: $1.5 Billion
Juice or juice-based Drinks Market size: $.25 billion
Health beverage industry is valued at $230 million
Indian Beer Market Growth Rate: 7 - 8 %
Indian Beverage Industry is 10% of Global beverage consumption today.
Milk-based beverages consumption has increased by an annual average of 2.7 per cent in
the last four years
Total packaged coffee market size: 19,600 tons or $87 million.
The Indian soft drink market is worth Rs. 21,600 million a year with a growth of around
7%.
The total soft drink (carbonated beverages and juices) market is estimated at 284 million
crates a year or $1 billion.
Peak season soft drink consumption : 25 million
Off-season soft drink consumption: 15 million
The market is predominantly urban with 25 per cent contribution from rural areas.
Coca cola and Pepsi dominate the Indian soft drinks market.
Indian Mineral water market size : 50 million industry.
BARRIERS IN THE INDIAN BEVERAGE INDUSTRY
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Despite this flurry of activity, the market is still plagued by low levels of awareness and a
lack of sophistication in consumer choices. Price remains a stumbling block. Public concerns
over safety and quality of beverages have been aggravated by research findings over alarming
levels of pesticide residues in bottled water and soft drinks.Furthermore, there is a lack of detail
and clarity in food safety regulation regarding nutraceuticals and functional beverages, and
regarding health claims.
Within the beverage industry there is inadequate understanding of how to take traditional
ingredients into the modern food processing environment.
Finally, the retail sector, despite its growth, is still mostly unorganized and this limits the
ability to differentiate health and wellness products through the allocation of exclusive
shelf space devoted to this category.
OVERCOMING BARRIERS:
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To overcome these challenges, beverage suppliers need to approach the
market with a multi-pronged strategy for increasing penetration. It can be
given as follow:
Price resistance can, to some extent, be overcome by moving from
‘imported’ to manufactured in India’ products. For example, imported ‘Gatorade’ cost INR45 per
200 ml bottle. Now, made in India, it costs INR25.
Substitution or modification is in some ways easier to execute than addition. (Examples of
substitution would be herbal tea replacing regular tea or soy milk replacing regular cow’s milk.
Examples of modification would be ‘low-fat’, ‘no-fat’, ‘lite’ variants of established beverage
brands).
The growing trend towards on-the-go consumption/out-of-home consumption (at the
workplace, in schools, colleges and gyms) presents suppliers with new place and form of
consumption options (for example, vending machines for dispensing health drinks at schools).
Abandoning the ‘one-size-fits-all’ positioning and generic selling points of the past, in favour
of targeted and specific messaging based on validated health benefits is likely to be more
effective to the better informed middle class today.
Leveraging the intrinsic appeal of traditional Indian ingredients such as ayurvedic, herbal or
oleoresin ingredients, but delivered in a modern, safe, convenient and consistent form, or
packaging and branding traditional Indian health drinks such as buttermilk and lassi, could create
whole new markets that derive their strength from known and trusted traditional ingredients or
drinks.
In the end, beverage suppliers who unlearn many of the long-held misconceptions about
Indian consumers and respond instead to their changing needs and priorities will be best placed
to maximize the health and wellness opportunity in this large and growing market
LEADING COMPANIES
Coca-Cola Company:
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The Coca-Cola Company (Coca-Cola) manufactures, markets and distributes nonalcoholic
beverage concentrates and syrups. The syrups, concentrates and beverage bases for Coca-Cola
and nearly 400 other soft-drink brands are manufactured and sold by the Coca-Cola Company
and its subsidiaries in nearly 200 countries around the world. More than 60% of its products are
sold outside of the US. It is headquartered in Atlanta, Georgia. The company recorded revenues
of $23,104 million during the fiscal year ended December 2005, an increase of 6.3% over 2004.
The company's net profit was $4,872 million in fiscal year 2005, an increase of 0.5% over 2004.
PepsiCo, Inc.:
PepsiCo is a leading global snack and beverage company. The company
manufactures, markets and sells a range of salty, convenient, sweet and
grain-based snacks, carbonated and non-carbonated beverages and foods.
The company operates in 200 countries besides the US and Canada. It is
headquartered in Purchase, New York. The company recorded revenues of $32.6 billion during
the fiscal year ended December 2005, an increase of 11.3% over 2004. The net profit was $4,078
million in fiscal year 2005, a decrease of 3.2% from 2004.
Parle Bisleri Pvt Ltd :
Parle Bisleri is an Indian bottled water company. The group is also involved in the production of
fruit juices under the Alfa brand.
Bisleri is a brand of bottled water in India. Bisleri has 60% market share in packaged drinking
water in India
Unilever:
Unilever Group (Unilever) is one of the leading companies in the
global fast-moving consumer goods segment. Unilever operates
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under a dual structure. Unilever NV and Unilever PLC are the twin parent companies of the
Unilever Group. Also, Unilever NV, Unilever PLC and their group companies constitute a single
reporting entity for presenting consolidated accounts. The group operates primarily in Europe,
the Americas, Asia and Africa. It is headquartered in Blackfriars, the UK and employs about
206,000 people. The group recorded revenues of $49,310.8 million during the fiscal year ended
December 2005, an increase of 2.9% over 2004. The operating profit of the group was $6,605.1
million during fiscal year 2005, an increase of 25.4% over 2004. The net profit was $4,940.8
million in fiscal year 2005, an increase of 35.2% over 2004.
Parle Agro Pvt Ltd:
Parle Agro is an Indian company in the beverages industry and has
brands like Frooti, consistent winner of India's fruit beverage brand,
Appy, Appy Fizz and packaged drinking water, Bailley.
A pioneer in the Indian industry, Parle Agro is associated with many firsts. They were the first to
introduce fruit drinks in tetra packaging, first to introduce apple nectar and the first to introduce
fruit drinks in PET bottles.
In 2008, Parle Agro forayed into foods with the launch of two confectionery brands, Mintrox mints and Buttercup candies. This was soon followed by two more brands - Buttercup Softease and Softease Mithai.
Recent beverage products from Parle Agro include Saint Juice, LMN and Grappo Fizz. In 2009, Parle Agro forayed into snacks with the launch of Hippo, in line with the company’s vision of becoming a major player in the foods and beverages industry.
SWOT ANLYSIS OF THE BEVERAGE INDUSTRY
STRENGTH
Renewal and investment
Innovation and Technological development
Experience in searching for new markets, niches and partners
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Availability of key raw materials, cheaper labour costs and presence across the entire
value chain gives India a competitive advantage.
WEAKNESS
Old technologies and poor work organization
Insufficient pace of creation and implementation of innovations
Insufficiently effective activities of small and medium-sized businesses
Change in household consumption patterns
OPPORTUNITIES
Presence of a favorable market
Market globalization
Foreign direct investment promoting knowledge and developing export channels
Transfer of production to the countries with smaller labour costs
Well established distribution network
THREATS
Unfavorable market trends in energy resources
Increasing competition among exporters and decreasing dependency on one market
Intense competition between the organized and unorganized segments and low
operational cost.
Water scarcity in India
INTRODUCTION TO PEPSICO COMPANY
Pepsi Co.: An Introduction
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PepsiCo, Incorporated is a large conglomerate with interests in manufacturing, marketing and
selling a wide variety of carbonated and non-carbonated beverages, as well as salty, sweet and
grain-based snacks, and other foods.
Company Profile
Type : Public (NYSE: PEP)
Founded : New York, (1965)
Headquarters : Purchase, New York
Area served : Worldwide
Key people : Indra K. Nooyi (Chairwoman),
(President) & (CEO)
Industry : Food, Non-alcoholic beverage
The PepsiCo challenge (to keep up with archrival The Coca-Cola Company) never ends for the
world's no.2 carbonated soft-drink maker. Its soft drinks include Pepsi, Mountain Dew, and
Slice. Cola is not the company's only beverage: Pepsi sells Tropicana orange juice brands, Slice
mango drink, Gatorade sports drink, Nimbooz lime drink and Aquafina water. The company also
owns Frito-Lay, the world's no.1 snack maker with offerings such as corn chips (Doritos, Fritos)
and potato chips (Lay's, Ruffles). Its Quaker Foods division offers breakfast cereals (Life), pasta
(Pasta Roni), rice (Rice-A-Roni), and side dishes (Near East). A true global giant, Pepsi's
products are available in some 200 countries.
HISTORY
Born in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the invention
of Caleb Bradham (left), a pharmacist and drugstore owner in New Bern, North Carolina.
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The information published here is provided by PepsiCo, Inc. and may be accessed at their site:
www.pepsi.com.
The story behind Pepsi co. goes as follows, in summer of 1898, as
usual, was hot and humid in New Bern, North Carolina. So a young
pharmacist named Caleb Bradham began experimenting with
combinations of spices, juices, and syrups trying to create a refreshing
new drink to serve his customers. He succeeded beyond all expectations
because he invented the beverage known around the world as Pepsi-
Cola.
Caleb Bradham had known that to keep people returning to his pharmacy, he would have to turn
it into a gathering place. He did so by concocting his own special beverage, a soft drink. His
creation, a unique mixture of kola nut extract, vanilla and rareoils, became so popular his
customers named it "Brad's Drink." Caleb decided to rename it "Pepsi-Cola," and advertised his
new soft drink. People responded, and sales of Pepsi-Cola started to grow, convincing him that
he should form a company to market the new beverage.
In 1902, he launched the Pepsi-Cola Company in the back room of
his pharmacy, and applied to the U.S. Patent Office for a trademark.
At first, he mixed the syrup himself and sold it exclusively through
soda fountains. But soon Caleb recognized that a greater
opportunity existed to bottle Pepsi so that people could drink it
anywhere.
The business began to grow, and on June 16, 1903, "Pepsi-Cola"
was officially registered with the U.S. Patent Office. That year,
Caleb sold 7,968 gallons of syrup, using the theme line "Exhilarating, Invigorating, Aids
Digestion." He also began awarding franchises to bottle Pepsi to independent investors, whose
number grew from just two in 1905, in the cities of Charlotte and Durham, North Carolina, to 15
the following year, and 40 by 1907. By the end of 1910, there were Pepsi-Cola franchises in 24
states.
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CUSTOMER PREFERENCE OF NIMBOOZ
Pepsi-Cola's first bottling line resulted from some less-than-sophisticated engineering in the back
room of Caleb's pharmacy. Building a strong franchise system was one of Caleb's greatest
achievements. Local Pepsi-Cola bottlers, entrepreneurial in spirit and dedicated to the product's
success, provided a sturdy foundation. They were the cornerstone of the Pepsi-Cola enterprise.
By 1907, the new company was selling more than 100,000 gallons of syrup per year.
Growth was phenomenal, and in 1909 Caleb erected a headquarters so spectacular that the town
of New Bern pictured it on a postcard. Famous racing car driver Barney Oldfield endorsed Pepsi
in newspaper ads as "A bully drink...refreshing, invigorating, a fine bracer before a race."
The previous year, Pepsi had been one of the first companies in the United States to switch from
horse-drawn transport to motor vehicles, and Caleb's business expertise captured widespread
attention. He was even mentioned as a possible candidate for Governor. A 1913 editorial in the
Greensboro Patriot praised him for his "keen and energetic business sense."
Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi sales with the
slogan, "Drink Pepsi-Cola. It will satisfy you." Then came World War I, and the cost of doing
business increased drastically. Sugar prices see sawed between record highs and disastrous lows,
and so did the price of producing Pepsi-Cola. Caleb was forced into a series of business gambles
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CUSTOMER PREFERENCE OF NIMBOOZ
just to survive, until finally, after three exhausting years, his luck ran out and he was bankrupted.
By 1921, only two plants remained open. It wasn't until a successful candy manufacturer,
Charles G. Guth, appeared on the scene that the future of Pepsi-Cola was assured. Guth was
president of Loft Incorporated, a large chain of candy stores and soda fountains along the eastern
seaboard. He saw Pepsi-Cola as an opportunity to discontinue an unsatisfactory business
relationship with the Coca-Cola Company, and at the same time to add an attractive drawing card
to Loft's soda fountains. He was right. After five owners and 15 unprofitable years, Pepsi-Cola
was once again a thriving national brand.
One oddity of the time, for a number of years, all of Pepsi-Cola's sales were actually
administered from a Baltimore building apparently owned by Coca-Cola, and named for its
president. Within two years, Pepsi would earn $1 million for its new owner. With the resurgence
came new confidence, a rarity in those days because the nation was in the early stages of a severe
economic decline that came to be known as the Great Depression.
TIMELINE –
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1898 Caleb Bradham, a New Bern, North Carolina, pharmacist, renames "Brad's Drink,"
a carbonated soft drink he created to serve his drugstore's fountain customers. The new
name, Pepsi-Cola, is derived from two of the principal ingredients, pepsin and kola nuts.
It is first used on August 28.
1902 Bradham applies to the U.S. Patent Office for a trademark for the Pepsi-Cola name.
1903 In keeping with its origin as a pharmacist's concoction, Bradham's advertising
praises his drink as "Exhilarating, invigorating, aids digestion."
1905 A new logo appears, the first change from the original created in 1898.
1906 The logo is redesigned and a new slogan added: "The original pure food drink." The
trademark is registered in Canada.
1907 The Pepsi trademark is registered in Mexico.
1909 Automobile racing pioneer Barney Oldfield becomes Pepsi's first celebrity endorser
when he appears in newspaper ads describing Pepsi-Cola as "A bully drink...refreshing,
invigorating, a fine bracer before a race." The theme "Delicious and Healthful" appears,
and will be used intermittently over the next two decades.
1920 Pepsi appeals to consumers with, "Drink Pepsi-Cola. It will satisfy you."
1932 The trademark is registered in Argentina.
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1934 Pepsi begins selling a 12-ounce bottle for five cents, the same price charged by its
competitors for six ounces.
1938 The trademark is registered in the Soviet Union.
1939 A newspaper cartoon strip, "Pepsi & Pete," introduces the theme "Twice as Much
for a Nickel" to increase consumer awareness of Pepsi's value advantage.
1940 Pepsi makes advertising history with the first advertising jingle ever broadcast nationwide.
"Nickel, Nickel" will eventually become a hit record and will be translated into 55 languages. A
new, more modern logo is adopted.
1941 In support of America's war effort, Pepsi changes the color of its bottle crowns to
red, white and blue. A Pepsi canteen in Times Square, New York, operates throughout
the war, enabling more than a million families to record messages for armed services
personnel overseas.
1943 The "Twice as Much" advertising strategy expands to include the theme, "Bigger
Drink, Better Taste."
1949 "Why take less when Pepsi's best?" is added to "Twice as Much" advertising.
1950 "More Bounce to the Ounce" becomes Pepsi's new theme as changing soft drink
economics force Pepsi to raise prices to competitive levels. The logo is again updated.
1953 Americans become more weight conscious, and a new strategy based on Pepsi's
lower caloric content is implemented with "The Light Refreshment" campaign.
1954 "The Light Refreshment" evolves to incorporate "Refreshing Without Filling.".
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1963 In one of the most significant demographic events in commercial history, the post-
war baby boom emerges as a social and marketplace phenomenon. Pepsi recognizes the
change, and positions Pepsi as the brand belonging to the new generation-The Pepsi
Generation. "Come alive! You're in the Pepsi Generation" makes advertising history. It is
the first time a product is identified, not so much by its attributes, as by its consumers'
lifestyles and attitudes.
1964 A new product, Diet Pepsi, is introduced into
Pepsi-Cola advertising.
1966 Diet Pepsi's first independent campaign,
"Girlwatchers," focuses on the cosmetic benefits of
the low-calorie cola. The "Girlwatchers" musical
theme becomes a Top 40 hit. Advertising for
another new product, Mountain Dew, a regional
brand acquired in 1964, airs for the first time, built around the instantly recognizable tag
line, "Ya-Hoo, Mountain Dew!"
1967 When research indicates that consumers place a premium on Pepsi's superior taste
when chilled, "Taste that beats the others cold. Pepsi pours it on" emphasizes Pepsi's
product superiority. The campaign, while product-oriented, adheres closely to the
energetic, youthful, lifestyle imagery established in the initial Pepsi Generation
campaign.
1969 “You've got a lot to live. Pepsi's got a lot to give" marks a shift in Pepsi Generation
advertising strategy. Youth and lifestyle are still the campaign's driving forces, but with
"Live/Give," a new awareness and a reflection of contemporary events and mood become
integral parts of the advertising's texture.
1973 Pepsi Generation advertising continues to evolve. "Join the Pepsi People, Feelin'
Free" captures the mood of a nation involved in massive social and political change. It
pictures us the way we are-one people, but many personalities.
1975 The Pepsi Challenge, a landmark marketing strategy, convinces millions of
consumers that Pepsi's taste is superior.
1992 Celebrities join consumers, declaring that they "Gotta Have It." The interim
campaign supplants "Choice of a New Generation" as work proceeds on new Pepsi
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CUSTOMER PREFERENCE OF NIMBOOZ
advertising for the '90s. Mountain Dew growth continues, supported by the antics of an
outrageous new Dew Crew whose claim to fame is that, except for the unique great taste
of Dew, they've "Been there, Done that, Tried that."
1993 "Be Young, Have fun, Drink Pepsi" advertising starring basketball superstar
Shaquille O'Neal is rated as best in U.S.
1994 New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi
CEO Craig Weatherup explaining the relationship between freshness and superior taste to
consumers.
1995 In a new campaign, the company declares "Nothing else is a Pepsi" and takes top
honors in the year's national advertising championship.
1998 - Pepsi celebrates its 100th anniversary. PepsiCo. Chairman and CEO Roger A. Enrico donates his salary to provide scholarships for children of PepsiCo employees. Pepsi introduces PepsiOne - the first one calorie drink without that diet taste!
STRENGTH & WEAKNESSES OF PEPSI CO.
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Pepsi Cola throughout its 100 years of existence has developed much strength. One of the
strengths that have developed Pepsi into such a large corporation is a strong franchise system.
The strong franchise system was the backbone of success along with a great entrepreneur spirit.
Pepsi’s franchise system and distributors is credited to bring Pepsi from a 7,968 gallons of soda
sold in 1903 to nearly 5 billion gallons in the year of 1997. .
Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola
bottlers and food service customers. This includes some of the world's best-loved and most-
recognized advertising. New advertising and exciting promotions keep.
Pepsi-Cola brands young. The company manufactures and sells soft drink concentrate to
Pepsi-Cola bottlers. The company also provides fountain beverage products.
Pepsi also has had the good fortune of making very wise investments. Some of the best
investments have been in their acquiring several large fast food restaurants. They have also made
wise investments in snack food companies like Frito Lay, which at present time is the largest
snacks company in the world.
Probably high on the list of strengths is Pepsi’s beverage line up. Pepsi has four soft drinks in the
top ten beverages in the world. These brands are Pepsi, Mountain Dew, Diet Pepsi, and Caffeine
Free Diet Peps. Some other strong brands are All Sport, Slice, Tropicana, Nimbooz, Aquafina
and a license agreement with Ocean Spray Juices.
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CUSTOMER PREFERENCE OF NIMBOOZ
Pepsi Cola like any company has weaknesses. Ironically, the one strength that has been
credited for most of its success in the past has now become a weakness for Pepsi . This
former strength is the franchise system. The franchise system in Pepsi Corporate view has
become a liability. Pepsi in today’s market must be able to act as one instead of several separate
units.
The franchise system has become a hurdle to Pepsi because many of these franchises
have become very strong and will not be dictated by PepsiCo on how to handle their
operations. Some of these franchises are unwilling to support certain Pepsi products and
at times produce their own private label products that are in direct competition with Pepsi
products.
Secondly the franchisees are not willing to make capital expenditures to keep up
with Coca-Cola who is a firm believer in reinvesting into their infrastructure (Coca
Cola at present time does not operate a franchise bottling system). .
Pepsi customers buy nearly five billion gallons of soft drinks per year. Pepsi
customers buy their products because of taste, price, packaging and promotional
factors and of a wide variety of brands. Pepsi customers also buy their products due
to the high accessibility of Pepsi brands.
Pepsi products are distributed to many outlets. For example, supermarkets where Pepsi
buys large shelf area and display areas so the customer can find them easier, viz,
Convenience stores, Restaurants, Movie theaters and almost and other conceivable spots.
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Another competitive advantage that Pepsi has is in their product Mountain Dew.
Mountain Dew has grown a staggering 74.1% over the last five years. Mountain Dew has
a 6.3% market share and has recently become the No.4 soft drink in America. At this
current pace Mountain Dew will become the first non-cola to reach the 1billion gallon
mark in one year.
Pepsi also has an advantage as an innovator in their field. They are the first soft drink
makers to introduce a new one-calorie soda called Pepsi-One with, just approved by the
FDA, Ace-K.
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CUSTOMER PREFERENCE OF NIMBOOZ
PEPSICO IN INDIA
PepsiCo entered India in 1989 and has grown to become one of the country’s leading food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India.
PepsiCo India and its partners have invested more than U.S.$1 billion since the company was
established in the country. PepsiCo provides direct and indirect employment to 150,000 people including suppliers and distributors.
PepsiCo nourishes consumers with a range of products from treats to healthy eats, that deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice.
PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG.It manufactures Lay’s Potato Chips, Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lay’s core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets.
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The group has built an expansive beverage, snack food and exports business and to support the operations are the group's 39 bottling plants in India, of which 17 are company owned and 22 are franchisee owned.
PEPSICO VS COCACOLA IN INDIA
Both target all income segments of as their products are attractive and likeable. Both companies
produce parallel products and services (Coca Cola Company, 2009). It is a known factor that
when a company goes beyond the national boundaries, the distribution channel and production
becomes main concern. When PepsiCo. launches new product and a new promotion strategy,
Coca Cola, follows its fierce competitor, with its own version or vice-versa.
Both companies are multinational and as they enter new market, they consider many issues such
as legal risk, political risk, business risk etc. because of the fact that in past these companies had
to leave the market due to above mentioned reasons. The companies are very conscious towards
taste preferences of the targeted customers. Both companies work on ethics and moral values.
They both have public relation department which serves as a chain between consumers and the
company.
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The above graph shows the beverage ranking as at the beginning of 2011.
Pepsi reverses a global trend in India, beating its main rival Coca-Cola in market share. In terms of Brand Trust too, Pepsi at rank 36 is at 160% higher than its closest cola competitor, Coca-Cola at 60th rank.
However the Coke camp has 5 brands among the top 300, as compared to the Pepsi-camp which is only represented by 3 brands among the 300 Most Trusted Brands of India.
PEPSICO INDIA SWOT ANALYSIS:
Strengths –
(a) Pepsico is a well-known brand in FMCG sector.
(b) Pepsico is offering many attractive sales promotion schemes.
(c) Pepsico is having good market share.
(d) Pepsico is offering many brands like 7up, Slice, Mirinda etc.
(e) Pepsico is offering Varity of tastes to select.
Weakness –
(a)Lack of effective customer services.
(b) Retailers are not getting proper schemes of Pepsi.
(c)Visis are out of order. In Jaipur town there is appropriate maintenance services available.
(d) Retailers are complaining about cooling. Visis are not cooling well mainly 300 and 400 liters.
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Opportunities: -
(a) Large beverage market.
(b) Popular in youth as well as children.
(c) New taste can be introduced like apple, even health drink also.
(d) In India the major competitors of Pepsi are tea, coffee, lassi, inthis case Pepsi can come in 100 ml or even 50 ml at Rs.3 or 4.
Threats: -
(a) Increasing competitors day by day.
(b) Poor publicity by competitors.
(c) Numberless innovation’s area in beverage industry.
PEPSICO INDIA PERFORMANCE
Pepsi is one of the most well known brands in the world today available in over 160 countries.
The company has an extremely positive outlook for India. Outside North America two of our
largest and fastest growing businesses are in India and China, which include more than a third of
the world’s population. (PepsiCo’s annual report, 1999)
Faced with the existing policy framework at the time, the company entered the Indian market
through a joint venture with Voltas and Punjab Agro Industries. With the introduction of the
liberalization policies since 1991, Pepsi took complete control of its operations. The government
has approved more than US$ 400 million worth of investments of which over US$ 330 million
have already flown in.
One of PepsiCo’s key strategies was to develop a completely local management team. Pepsi
has 19 company owned factories while their Indian bottling partners own 21.
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Since the entry of Pepsi-Cola to India in 1989, the soft drink industry has under gone a radical
change. When Pepsi-Cola entered, Parle was the leader with the Thums-up being its flagship
brand. Other products offering by Parle included Limca & Goldspot, another upcoming player in
the market was, the erstwhile bottler of Coca-Cola, “pure drinks”. Its offering includes Campa-
Cola, Campa-Lemon & Campa-Orange
The two advertisements tags: ‘yehi hai right choice baby’ and ‘nothing official about it’
immediately ring a bell- it’s got to be Pepsi. The advertisement tag ‘yehi hai right choice
baby’ was the first ‘Hinglish’ slogan ever used in the in the Indian market. This slogan
proved to be the best suited one for Pepsi and it was a mega hit and at that moment of time.
Pepsi in a short span of its operations in India has found a place in the hearts and minds of the
Indian consumers. The success has primarily been due to the innovative and passionate Indian
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CUSTOMER PREFERENCE OF NIMBOOZ
team, which has been built over the years. Pepsi is a trendsetter managed and run by Indians,
where important decisions are taken locally.
The RKJ group is India's leading supplier of retailer brand Carbonated and Non-Carbonated soft
drinks, with beverage manufacturing facilities in India and Nepal.
It has the license to supply beverages in the territories of Western U.P., part of
M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 9
districts of Karnataka and whole of Nepal. The group has in total 18 bottling plants
in India & Nepal and is responsible for producing and marketing 44% of Pepsi requirement in
India.
This group has brought name and fame to the Pepsi as in all this regions Pepsi is at the
commanding position and in the mean this group has diversified itself into ice cream, suiting and
shirtings, restaurants, beer plant in Mauritius & edible oil plant in Sri Lanka
PESTICIDE CONTROVERSY 2003:
Although Pepsi’s sales were hurt post-cola contamination controversy, Pepsi spokesperson
maintained that “it was difficult to assess whether the slump was due to the controversy or
a lean monsoon. Weather has played a spoilt sport, too, and the season has been dull so
they were cross fingered whether sales have been hit by the pesticides issue alone.”
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PERFORMANCE IN 2010:
PepsiCo reported that volume, revenue and profit growth for the fourth quarter and the full year of 2010 were driven by gains across its worldwide snacks and beverage businesses.
Beverage performance for the quarter was led by high double-digit growth in India, For the full year, beverage volume was led by double-digit growth in India and China.
The net revenue grew by 34 per cent, net income rose by six per cent and core constant currency net income rose by 15 per cent. PepsiCo said, “Our snack and beverage volume gains for the quarter and full year were led by strong performance in key emerging markets. The Middle East, India and China, each reported snack volumes growing by strong double digits, and acquisitions contributed two points of snacks volume growth in the quarter and for the full year.”
. The company further strengthened its position in India through the formation of a joint venture with Tata Global Beverages to develop and market hydration beverages for the India market.
The chronology PEPSICO. in India was:
1977: Parle launched Thums-up and pure drinks launched Coca-Cola.
1998: In September, final approval for the Pepsi Foods Ltd. Project granted by the
“Cabinet Committee” on economic affairs of the “Rajeev Gandhi Govt.”
1990: In March, “Pepsi-Cola and 7-up” launched markets in north India.
1990: In May, The government cleared the Pepsi-Cola project again but with a change in
brand name to “Lehar Pepsi”, simultaneously it rejects the Coca-Cola application
“Citra” from the Parle, stable hited the market.
1991: Pepsi-Cola extended its soft drinks business and reached at national scale. Pepsi-
Cola launched its product in Delhi and Bombay.
1992: In January, Brito foods application is cleared by the FIPB. Pepsi-Cola and Parle
start initial negotiation for a strategic alliance but took break off after a while.
1993: Pepsi-Cola launched “Slice and Teem” captured about 25-30% of the soft drink
market in about 2 years.
1994: Pepsi bought “Dukes & Sones”.
1995: Pepsi-Cola lunched cans, having capacity of 330ml in various flavors.
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1996: Pepsi-Cola domestic and international operations combined into a Pepsi-Cola
Company. International and domestic operations combined into one business unit called
“Frito-lay Company”.
1997: Pepsi-Cola brought “Mirinda Orange” opposite to “Fanta”.
1998: Pepsi-Cola launched “Mirinda Lemon” opposite to “Limca”.
1999: Pepsi-Cola launched “Diet Pepsi” in can and 1.5 Lit. PET bottle for health
conscious people.
2001: Pepsi-Cola launched Slice in “Tetra” Pack.
2003: Pepsi-Cola launched “Pepsi Blue” to get the favour of world cup season.
2005: Pepsi-Cola launched Mirinda in “Straw Berry” flavour to get the favour of movie
Batman.
2005: Pepsi-Cola launched 7-up as “7-up ice”.
2009: Pepsi- Cola launches “Nimbooz”.
NIMBOOZ:
PEPSICO’S NEWEST OFFERING! INTRODUCTION
Numbu Paani is a delicious thirst quencher made from freshly squeezed lemons, salt and
sugar.It has a clean and
refreshing flavour and is rich
with vitamin C.
Nimbu Paani, which is nothing but lemonade or lemon squash. It is commonly available in all the towns of India, particularly in the summer season. It is very easy to prepare. Fresh lemon is squeezed in a glass and salt and sugar is added to it. Crushed ice may also be added.
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CUSTOMER PREFERENCE OF NIMBOOZ
Nimbu Paani’ has always been the most commonly consumed cold beverage for Indians,
especially during hot summers. Hence it made perfect business sense to launch a non-fizzy drink
during summers as it scores above the colas in the health aspect (carbonated drinks actually
soaks up the body’s moisture leaving the system more dry). With links to childhood obesity
and tooth decay, soft drink sales were down for the first time in 20 years. And sales of
bottled water, juices and energy drinks are continuing to eat into the soda market.At such
a time PepsiCo decided to launch “Nimbooz”.
The added advantage of it being a very familiar natural refreshing drink which is now being
offered in a hygienic and convenient way would make the mothers prefer it over the Colas.
LAUNCH OF NIMBOOZ:
The lime-lemon category is the fastest growing
segment of the Rs 7,000-crore aerated soft drink
market, with both competing brands Sprite from
Coca-Cola and PepsiCo's 7-Up registering healthy
growth rates.
At the onset of the summer, PepsiCo India had launched packaged nimbu paani, Nimbooz by
7UP. The product has been created to suit Indian tastes. PepsiCo was delighted to introduce
Nimbooz, a packaged nimbu paani offering specially developed to suit Indian tastes and
preferences. Nimbu paani is a well loved Indian drink and Nimbooz brings consumers this well-
loved taste backed by PepsiCo quality. PepsiCo claimed that Nimbooz contained no artificial
flavours and contained real lemon juice.
On 26 Feb 2009 PepsiCo India, the country’s leading food & beverage company, launched
its packaged nimbu paani, Nimbooz by 7Up. Inspired by fresh, home-made nimbu paani,
India’s favourite beverage, Nimbooz by 7Up has been specially created to suit Indian
tastes.
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CUSTOMER PREFERENCE OF NIMBOOZ
Nimbooz is a delicious nimbu paani, with real lemon juice, no fizz, and no artificial
flavours. Available in trendy, convenient packs, Nimbooz is a great way to enjoy nimbu
paani ina hygienic format.
PepsiCo has drawn up an intensive consumer activation campaign to market Nimbooz. The 360
degree marketing communication plan will build awareness through multi-city launches and road
shows, 3D activation, leveraging Out-of-Home (OOH) media, radio, press and outdoors.
Aggressive trial generation & sampling
initiatives were also be taken forward
across major cities of the country. A
special ‘Nimbooz Highway Gadi’ had
been created that would visit the four
major highways connecting Delhi to
Jaipur, Dehradun, Agra to drive trails
and consumer education
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CUSTOMER PREFERENCE OF NIMBOOZ
To introduce the beverage, as part of the teaser campaign which kicked off on March 15,
an 18-foot tall wooden lemon squeezer with a four-foot lemon replica in it was placed
outside various malls and junctions. The message on it read, “Asli Refresher Coming
Soon”. This innovation was executed at Ambi Mall, Gurgaon; Great India Place, NOIDA;
Court Chowk, Amritsar; and Fun Republic Mall, Chandigarh.
For the revealer, the lemon was replaced with a 20-foot high Nimbooz bottle on March 18.
The teaser in Mumbai was spread across five days.
For this, a knotted gunny bag stuffed with lemons
was mounted on a canter at Mahim Causeway. The
message on the sack read, “4 Din Mein Asli”. Day 2
saw an untied sack with lemons scattered around it
and a similar message, with the number of the day changed. The sack got shorter for the
next two days and on the fifth day, a returnable glass bottle (RGB) of Nimbooz appeared
on the canter.
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CUSTOMER PREFERENCE OF NIMBOOZ
The on-ground initiative was supported by a TV commercial that reflects Nimbooz ‘Ekdum Asli
Indian’ proposition. The film had been created by BBDO India.
In times of tough competition, branding needs to stand out and this is where outdoor media
helps, by making the communication as big as possible. Lemon is central to the idea of Indian
refreshment and the same thought went in the making of Nimbooz. They decided to keep the
brand proposition simple, yet appealing, by dwelling on the authenticity of Ekdum Asli Indian
Nimbu-Paani.
“Its like rebirth of nimboo pani with a new refreshing and energetic taste. Definitely this product
has given great and tough competition to the other drinks of its segment. People really love its
taste and want to purchase Nimbooz. also pushing friends and family member to try it as they
believe once they will try then rest Nimbooz will handle in short YEHI HAI RIGHT CHOICE”
WHAT IS A MARKETING MIX?
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CUSTOMER PREFERENCE OF NIMBOOZ
The term "marketing mix" was coined in 1953 by Neil Borden in his American Marketing
Association presidential address. However, this was actually a reformulation of an earlier idea by
his associate, James Culliton, who in 1948 described the role of the marketing manager as a
"mixer of ingredients", who sometimes follows recipes prepared by others, sometimes prepares
his own recipe as he goes along, sometimes adapts a recipe from immediately available
ingredients, and at other times invents new ingredients no one else has tried.
The marketing mix is probably the most famous marketing term. Its elements are the basic,
tactical components of a marketing plan. Also known as the Four P's, the marketing mix
elements are price, place , product, and promotion.
Elements of the marketing mix are often referred to as the "Four P's":
Product - It is a tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cellphone load and credits. To retain its competitiveness in the market, product differentiation is required and is one of the strategies to differentiate a product from its competitors.
Price – The price is the amount a customer pays for the product. The business may increase or decrease the price of product if other stores have the same product.
Place – Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.
Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion.
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CUSTOMER PREFERENCE OF NIMBOOZ
MARKETING MIX OF NIMBOOZ
PRODUCT:
PepsiCo India launched a packaged nimbu paani offering – Nimbooz – under its 7Up brand to
expand its non-carbonated drinks portfolio. Nimbooz is a non-carbonated lemon drink which
contains no artificial flavors and contains real lemon juice.
INGREDIENTS:
Water
Sugar
Concentrated Lemon Juice (0.8%)
Acidity regulators (296,330)
Salt
Preservatives (202)
*contains added flavor (natural and nature
identical flavouring substances)
PACKAGING:
Nimbooz offers great value to consumers in three packaging formats of:
200ml returnable glass bottles
350ml pet bottles
49
NUTRIONAL FACTS
ENERGY (kcal) 43
CARBOHYDRATES (g) 10.8
SUGARS (g) 10.5
PROTEIN (g) 0
FAT (g) 0
CUSTOMER PREFERENCE OF NIMBOOZ
200 ml tetra
.PRICE:
Nimbooz is relevant and 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.
The pricing strategy adopted is of course that of PENETRATION PRICING as followed
by all PepsiCo products.
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CUSTOMER PREFERENCE OF NIMBOOZ
PLACE:
PepsiCo already has well established distribution network for its other brands so it becomes
easier for them to cover the entire Indian market and place Nimbooz in retail outlets and
restaurants.
Traditional Trade :At Kirana stores in the above mentioned packages.
Modern trade:Distribution through sports clubs, gymnasiums, tie ups with sports institutes etc.
Wheel and Spokes model: In rural areas, where one dealer serves many villages.
After the launch a newspaper article cited the following:
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CUSTOMER PREFERENCE OF NIMBOOZ
PROMOTION
PepsiCo has drawn up an intensive consumer activation campaign to market Nimbooz. The 360
degree marketing communication plan has build awareness through multi-city launches and
road shows, 3D activation, leveraging Out-of-Home (OOH) media, radio, press and outdoors,
TV commercial that reflects Nimbooz’s ‘Ekdum Asli Indian’ proposition. A special ‘Nimbooz Highway
Gadi’ has also been created that visit’s the four major highways connecting Delhi to Jaipur, Dehradun,
Agra to drive trails and consumer education.
TAGLINE AND LOGO:
The logo was developed in YELLOW AND GREEN which in the Indian context
symbolizes auspicious beginning
The tagline and positioning was kept to appeal to the emotions of the Indian
consumers as “EKDUM ASLI INDIAN”.
Nimbooz was promoted as drink from 7UP RATHER THAN PEPSI IN KEEPING
WITH THE “FRESH” BRAND IMAGE OF 7UP.
It was promoted as a drink which had “ASLI LEMON JUICE” to cater to the
conservative needs of the Indian masses which prefers homemade drinks to
packaged ones.
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CUSTOMER PREFERENCE OF NIMBOOZ
.INNOVATIVE PROMOTION STATEGIES ADOPTED:
Creating a motorized 2D squeezer on a hoarding to demonstrate how nimbu paani is
made. A lemon replica was placed between two panels of the wooden squeezer. The
upper portion of the squeezer comes down, crushing the lemon placed on the lower panel
and drops of lemon juice fall from the squeezer into a Nimbooz bottle placed on the
lower portion of the hoarding. This innovation can be seen at Defence Colony and Vikas
Puri in Delhi, Bhandari Bridge in Amritsar, Hazratganj in Lucknow and Bhagwan Talkies
Agra.
Hoardings with huge cut-outs of the Nimbooz
bottle can also be seen at various locations in
Mohali, Dehradun and Meerut. With this
campaign, PepsiCo decided to focus on North
and West India, because of the high
consumption of nimbu paani in these regions
during summers. The outdoor campaign that is
spread across this month has been ideated and executed by creative agency, BBDO Delhi
and specialist outdoor agency, Portland Outdoor
NautiyalRohit,Nimbooz becomes official sponsor of Kings XI Punjab,
www.afaqs.com
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CUSTOMER PREFERENCE OF NIMBOOZ
Through this partnership, Nimbooz have gained the exclusive pouring rights at home
matches besides being the official beverage for the Kings XI.
It organized a dance completion across 10 cities in Punjab and had above 2500
participants, to promote itself. The winning team received the cash prize of Rs. 1,00,000/-
ADVERTISEMENTS:
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CUSTOMER PREFERENCE OF NIMBOOZ
NIMBOOZ promoted its product vigorously by several TV advertisements as well.A sample one
is given below.
NIMBOOZ COMPETITOR ANALYSIS:
Following the launch of Nimbooz by PepsiCo, its
closest competitors in the Indian segment- Coca
cola and Parle Agro also introduced non carbonated
lemon based drinks to their product ranges. An
analysis of the close substitutes for Nimbooz is
given below.
LMN : Emergency Lemon Refresher
Brand : LMNCompany : Parle AgroAgency : CreativeLand Asia
LMN is from the house of Parle Agro. Parle Agro is in an over
drive with new launches like Saint Juice, LMN and Grappo Fizz. It
is encouraging to see an Indian company aggressively taking on the
Cola majors. LMN was launched in March 2009.
LMN, which is derived from the SMS format of Lemon, is a catchy sounding brand name
that seems very youthful and chic. Positioned as 'The Emergency Lemon Refresher', it has
the ability to cut through the clutter and make people remember the brand.
Parle has chalked out a 360 degree marketing strategy comprising a TVC, print advertising, point
of purchase promotions and BTL activities.
PACKAGES AVAILABLE:
110ml Tetra @ Rs.5
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CUSTOMER PREFERENCE OF NIMBOOZ
200ml Tetra @ Rs. 10and
500ml PET @Rs.23
MINUTE MAID NIMBU FRESH:
Company: Coca-cola
Riding on the success of Minute Maid Pulpy Orange, Beverage major
Coca Cola India has launched its latest product variant under its
umbrella brand Minute Maid. The newly launched Minute Maid Nimbu
Fresh is a lemon juice-based drink with no added preservative or added
colour, developed for the Indian market.
The lemon-flavoured drink is made out of fresh lemon juice
concentrate, emulating home-made 'nimbu pani'.The drink was
launched in January 2010.
Tagline: 'Bilkul ghar jaisa' (just like home).
PACKAGES AV AILABLE:
On-the-go 400 ml PET priced at Rs 15 and
1 liter PET all affordably priced at Rs 40
OTHER COMPETITORS:
Nimbooz competes with brands like Limca, Sprite, 7 Up. But the interesting
fact is that all these brands represents different categories.The basic difference
between Nimbooz and Sprite is that Sprite is a carbonated beverage while
Nimbooz is not.Limca is a cloudy drink while 7 Up and Sprite are clear drinks.
Nimbooz also competes with other beverages like the existing Juices, nectars, fruit pulps
et. Even though they belong to another category, they are both non-carbonated and
hence act as competition.
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CUSTOMER PREFERENCE OF NIMBOOZ
COMPARISON BETWEEN NIMBOOZ LMN AND MINUTE MAID NIMBU FRESH:
Nimbooz enjoyed comparative advantage since it was the first to be launched in
February 2009.
Nimbooz faces tough competiton from LMN since LMN comes in attractive
packages which may beat those of Nimbooz. The tetra pack of LMN is priced only at
Rs 5 (110ml) where Nimbooz doesn’t have a package of that quantity. Minute Maid
on the other hand comes in only two sizes and it priced higher hence there is no
price competition there.
Both Nimbooz and Minute Maid appeal to the emotional instincts of the Indian
masses. Minute Maids tagline is “bilkul ghar jaisa” whereas that of Nimbooz is
“ekdum asli Indian”
LMN appeals to the younger chic generation with its brand name and positioning as
an “emergency refresher”. However Nimbooz appeals to all segments.
Nimbooz conducted a vigorous advertising and promotional campaign for its
launch, of which it is still reaping benefits. However LMN and Minute Maid have no
such advantages
Tie up of Nimbooz with Kings XI Punjab was another major competitive advantage
as it gave them exclusive rights to serve Nimbooz at all Drink Breaks of the IPL
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CUSTOMER PREFERENCE OF NIMBOOZ
matches. In India cricket is a religion and hence this greatly benefitted Nimbooz
brand image
Nimbooz ads are humorous, which even take a dig at some of the common not-so-
pleasant Indian practices. On the other hand, Minute Maid Nimbu Fresh tries to
build an emotional connect with the consumer. As with the theme, the ads too have
invited different reactions .
So while the two products are the same, and are positioned similarly on being authentic
Indian, the different themes in the TVCs create all the difference. While Minute Maid
paints a more positive picture with nostalgia, Nimbooz mocks the Indian practices in the
process.
Minute Maid enjoys comparative advantage as its “pulpy orange” is already an
established brand name in the market. Both Nimbooz and LMN are first time
launches.
TASTE: The most important aspect of any drink is the taste, Minute Maid and
Nimbooz both taste almost the same, with Minute Maid being slightly more pulpy.
Both are a perfect mix of sourness and sweetness.LMN on the other hand tends to
be a bit more sour then sweet. Hence consumers preference between the three
completely depends on individual tastes.
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CUSTOMER PREFERENCE OF NIMBOOZ
TITLE OF THE PROJECT REPORT
A study on the CUSTOMER PREFERENCE of Nimbooz.
STATEMENT OF PROBLEM
Nimbooz is a fairly new brand of Pepsi co. It was launched in 2009 and is still in the process of
becoming a well known brand. The company is still building awareness through its 360 degree
marketing program. The brand is in its initial stage of growth. The biggest problem faced by
Nimbooz is that it is a part of a highly competitive market. Its main competitors are LMN and
minute-maid by Parle-agro and Coca-Cola respectively. They are slowly eating away the market
share of Nimbooz. This research is analyzing these very issues.
SCOPE OF THE PROJECT
The study intends to cover the market scope and consumer behavior of the company. The project
will help give insight into the company’s marketing section and its pros and cons. It gives an
overall view of the consumer attitudes and perception.
OBJECTIVES OF THE STUDY
1. To study the recent trends in the industry.
2. To find out the awareness level of consumers about Nimbooz.
3. To identify the attitude of customers towards Nimbooz.
4. Post – launch market evaluation of Nimbooz.
HYPOTHESIS DEVELOPMENT
The hypothesis has been developed to analyze whether consumers are aware of the brand
Nimbooz of Pepsi co.
Null hypothesis - majority of people are not aware of the brand.
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CUSTOMER PREFERENCE OF NIMBOOZ
Alternative hypothesis – majority of people are aware of the brand.
RESEARCH METHODOLOGY
TYPE OF RESEARCH
Descriptive research, also known as statistical research, describes data and characteristics about
the population or phenomenon being studied. Descriptive research answers the questions who,
what, where, when and how.
DATA COLLECTION
a. Primary Data: Primary data has been collected using questionnaire. That is the information
gathered directly.
b. Secondary data: Secondary data has been obtained from the internet. That is information
from indirect or other sources.
c. External data: Magazines, research books and internet.
SAMPLE SIZE
It denotes the number of elements selected for the study. For the present study, 50 respondents
were selected at random. All the 50 respondents were the customers of one or other beverage
companies.
SAMPLING TECHNIQUES
The sampling technique of the project is: SIMPLE RANDOM CONVENIENCE
TECHNIQUE because the product belongs to the category of regular used product and
most of the users were youngsters already present to us conveniently.
A random sample is a sample selected from a population in such a way that each element of the
population has an equal chance of being selected and the selection of any individual does not
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CUSTOMER PREFERENCE OF NIMBOOZ
influence the selection of any other. The selection depends on chance. So while conducting the
survey 50 respondents were selected at random.
ACTUAL DATA COLLECTION:
Personal method was applied to collect the actual data for the research study. The interactions
with the respondents before filling questionnaires helped to reduce a sense of apprehensiveness
to divulge information about themselves.
Apart from the questionnaire method following tools also has been used for actual data
collection.
Internet: company related and topic related websites also provided significant contribution in
data collection.
Journal: article review on the industry, company as well as its competitors.
DATA ANALYSIS TOOLS
The interpretation of data gathered will be done using statistical methods, simple percentage and
graphs.
LIMITATIONS OF THE STUDY
Not much information was revealed by the company, as the executive personnel wanted
to keep certain information secret.
The time to complete the project is too little.
The area covered under the study is vast.
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CUSTOMER PREFERENCE OF NIMBOOZ
ANALYSIS
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I. Demographic Variables
(a)Table showing the age group of the respondents.
Age Frequency Percentage
15 – 25 20 40%
26 – 35 12 24%
36 – 45 9 18%
Above 45 9 18%
TOTAL 50 100%
From the above table it can be noted that:
40% of the respondents belong to the age group – 15 to 25
24% of the respondents belong to the age group – 26 to 35
18% of the respondents belong to the age group – 36 to 40
18% of the respondents belong to the age group – above 40
63
40%
24%
18%
18%
Age group15 - 25 26 - 35 36 - 45 above 45
CUSTOMER PREFERENCE OF NIMBOOZ
(b)Table showing the gender of the respondents.
Gender Frequency Percentage
Male 32 64%
Female 18 36%
TOTAL 50 100%
64%
36%
GenderMale female
From the above table it can be noted that:
64% of the respondents are male
36% of the respondents are female
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CUSTOMER PREFERENCE OF NIMBOOZ
(c) The occupation of the respondents.
Occupation Frequency Percentage
Student 20 40%
Business 15 30%
Employed 6 12%
Others 9 18%
TOTAL 50 100%
40%
30%
12%
18%
OccupationStudent Business Employed Other
From the above table it can be noted that:
40% of the respondents are students
30% of the respondents are businessmen
12% of the respondents are employed
18% of the respondents are others.
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CUSTOMER PREFERENCE OF NIMBOOZ
1. Type of drink preferred by respondents
Drink type Frequency Percentage
Carbonated 14 38%
Energy 4 8%
Nimbu-pani 12 24%
Fruit - based 20 30%
TOTAL 50 100%
38%
8%30%
24%
CarbonatedenergyFruit basednimbu pani
INTERPRETATION
38% of the consumers prefer carbonated drinks making it the most
preferred drink type.
Next are fruit based drinks which are preferred by 38% of the
consumers.
Nimbu – pani is the third most preferred drink with 24%. It is catching
up to the carbonated drinks.
Lastly it is the energy drinks with 8% preference.
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CUSTOMER PREFERENCE OF NIMBOOZ
Reason for preference by respondents
Preference reason Frequency Percentage
Flavor 37 74%
Advertisements 4 8%
Packaging 0 0%
Health - factors 9 18%
TOTAL 50 100%
74%
8%
18%
FLAVOUR ADVERTISEMENT PACKAGING HEALTH FACTORS
INTERPRETATION
The most popular reason for purchase is clearly flavor of the drink. It is 74%
times the reason for purchase.
Health factor is the second consideration for purchase by consumers at 18%.
Advertising only affects 8% of the consumers to purchase a drink.
The company must ensure that no compromise is done on the taste and flavor. it should not
adversely affect health of consumers. Packaging does not play any role in consumers
purchase hence the company should continue with existing packaging strategy.
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CUSTOMER PREFERENCE OF NIMBOOZ
3)Frequency of purchase by respondents
Frequency of purchase Frequency Percentage
Daily 12 24%
Weekly 29 58%
Monthly 7 14%
Once a month 2 4%
TOTAL 50 100%
24%
58%
14%
4%
DAILY WEEKLYMONTHLY ONCE A MONTH OR LESS
INTERPREATION
58% of the respondents purchase on a weekly basis.
24% of the respondents purchase on a daily basis.
14% of the respondents purchase on a monthly basis.
4% of the respondents purchase once a month or less.
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CUSTOMER PREFERENCE OF NIMBOOZ
2. Preference among nimbu-pani flavor
Preference Frequency Percentage
LMN 7 14%
Nimbooz 19 38%
Minute – maid 21 42%
None 3 6%
TOTAL 50 100%
14%
38%
42%
6%
LMN NIMBOOZ MINUTE-MAID NONE
INTREPRETATION
42% of the respondents prefer minute – maid
38% of the respondents prefer Nimbooz
14% of the respondents prefer LMN
6% of the respondents prefer don’t like any
Minute Maid clearly enjoys the largest preference share among the consumers. As spotted
earlier, the taste is the element that affects consumer purchase, hence whenever the
company plans to introduce any change or a newer version, they must pay greater
attention to the taste of Nimbooz to combat Minute Maid Nimbu Fresh.
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4)Number of the respondents that have tried Nimbooz
Frequency Percentage
Tried 38 76%
Not tried 12 24%
TOTAL 50 100%
Tried Not tried
INTERPRETATION
76% of the respondents have tried Nimbooz.
24% of the respondents have not tried Nimbooz.
It can be inferred that Nimbooz has been tried by a majority of people and hence the reach
and awareness of the product is high.
However after 2 years from the launch, 24% of the respondents from urban areas raises
reasons for concern for the company. The company must ensure that it focuses on product
awareness and adopts strategies so as to induce incentives for trial among the consumers.
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CUSTOMER PREFERENCE OF NIMBOOZ
4)Number of respondents that remember Nimbooz advertisements.
Frequency Percentage
Yes 46 92%
No 4 8%
TOTAL 50 100%
92%
8%
YES NO
INTERPRETATION
92% of the respondents have noticed the Nimbooz advertisements.
8% of the respondents have not noticed the Nimbooz advertisements.
The advertisement campaign of the company has definitely been extremely effective, which
indicates that the company can continue with its present strategies and degree of
advertising.
However as shown in the previous graph, if 92% of the respondents remember the ads,
then product awareness is definitely not the cause for 24% having not tried the drink. The
company should focus on strategies to initiate trial hence.
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CUSTOMER PREFERENCE OF NIMBOOZ
Number of respondents that think Nimbooz has a distinct taste.
Frequency Percentage
Yes 40 80%
No 10 20%
TOTAL 50 100%
YES NO0
5
10
15
20
25
30
35
40
45
INTERPRETATION
80% of the respondents think Nimbooz has a distinctive taste.
20% of the respondents do not think Nimbooz has a distinct taste.
It can be inferred that the respondents believe that Nimbooz has a distinctive
taste, however inspite the distint taste they tend to prefer Minute Maid over
Nimbooz. The analog that can be drawn is that Minute Maid Nimbu Fresh
has a better taste than Nimbooz according to the respondents
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CUSTOMER PREFERENCE OF NIMBOOZ
3. Whom do respondents like to drink Nimbooz with?
Frequency Percentage
Family 9 18%
Friends 13 26%
Alone 28 56%
TOTAL 50 100%
FAMILY FRIENDS ALONE
913
28
INTERPRETATION
28 out of 50 respondents have Nimbooz alone, which is 56% of the respondents.
26% of respondents with friends
Only 18% of respondents with family.
It can be inferred that the respondents do not consider Nimbooz to be a drink which has to
be consumed with family (like Mirinda) nor necessarily with friends (like Appy Fizz).
Respondents like to consume it alone.
This is beneficial to the company as it is promoted essentially as a thirst quencher and
substitute for nimbu paani available on the road which is also mostly consumed alone.
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CUSTOMER PREFERENCE OF NIMBOOZ
Number of respondents that think Nimbooz would be preferred by kids.
Frequency Percentage
Yes 13 26%
No 37 74%
TOTAL 50 100%
YES NO0
5
10
15
20
25
30
35
40
INTERPRETATION
37 out of 50 or 74% of the respondents think Nimbooz would not be
liked by kids.
13 out of 50 or 26% of the respondents think Nimbooz would be liked
by kids.
It can be inferred that the respondents feel that Nimbooz is a drink for older
people who are on-the-go rather than children. The company should therefore
now focus on the “children segment” to increase awareness and acceptability
amongst kids.
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CUSTOMER PREFERENCE OF NIMBOOZ
4. Number of respondents that think Nimbooz is a refreshing drink.
Frequency Percentage
Yes 32 64%
No 18 36%
TOTAL 50 100%
YES NO0
5
10
15
20
25
30
35
INTERPRETATION
32 out of 50 or 64% of the respondents think Nimbooz is a refreshing
drink.
18 out of 50 or 36% of the respondents think Nimbooz is not a
refreshing drink.
Majority of the respondents feel that it is a refreshing drink which is good
news for the company as it seeks to position itself as a refreshing drink.
The reason for 36% feeling that it is not refreshing could be partially
attributed to them having not tried the drink, or the perception that
carbonated drinks or “soda based drinks are more refreshing than non fizzy
ones.
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CUSTOMER PREFERENCE OF NIMBOOZ
Number of respondents that think Nimbooz is a stress relieving drink.
Frequency Percentage
Yes 42 84%
No 8 16%
TOTAL 50 100%
YES NO05
1015202530354045
INTERPRETATION
42 out of 50 or 84% of the respondents think Nimbooz relieves stress.
8 out of 50 or 16% of respondents do not think Nimbooz relieves
stress.
The inference that can be drawn is that Nimbooz has succeeded in creating
the right brand image for itself as a substitute for “nimbu paani” .
This is because nimbu paani is considered a stress reliever owing to its lemon
content (Vitamin C), high sugar concentration (carbohydrates) and salt which
help energize and relieve tension. Nimbooz is perceived to have all these
positive attributes.
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CUSTOMER PREFERENCE OF NIMBOOZ
5. Number of respondents that think Nimbooz is a healthy drink.
Frequency Percentage
Yes 20 60%
No 30 40%
TOTAL 50 100%
yes no0%
10%
20%
30%
40%
50%
60%
70%
Series1
INTERPRETATION
30 out of 50 or 60% respondents think that Nimbooz is good for
health.
20 out of 50 or 40% respondents think that Nimbooz is not good for
health.
It can be inferred that the Nimbooz has a good brand image , as that of a
healthy drink. The company should capitalize on this image and enhance its
market share.
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CUSTOMER PREFERENCE OF NIMBOOZ
Attributes of Nimbooz as rated by respondents.
COMPLETEL
Y DISAGREE
DISAGRE
E
NEITHER
AGREE
OR
DISAGRE
E
AGRE
E
COMPLETEL
Y AGREE
TOTA
L
GOOD TASTE 5 7 16 15 7 50
REPUTED BRAND 5 4 20 15 6 50
GOOD FOR
HEALTH
4 8 18 16 4 50
NATURAL
INGREDIENT
5 8 20 12 5 50
REFRESHING 8 4 11 18 9 50
DRINK FOR
YOUTH
7 9 13 16 5 50
AVAILABILITY 7 5 15 12 11 50
PRICE 4 8 15 17 6 50
DESIGN AND
PACKAGING
8 5 12 15 10 50
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CUSTOMER PREFERENCE OF NIMBOOZ
GOOD TAST
E
REPUTE
D BRAND
GOOD FOR HEA
LTH
NATURAL IN
GREDIEN
T
REFRES
HING
DRINK FOR YO
UTH
AVAILABILIT
YPRICE
DESIGN AND PACKAGING
5 5 4 5 8 7 7 48
7 4 8 8 4 95 8
5
16 2018
20
11
1315 15 12
15 15 16 12
18
1612
1715
7 6 4 59
511
610
COMPLETELY DISAGREE DISAGREE NEITHER AGREE OR DISAGREEAGREE COMPLETELY AGREE
INTERPRETATION
From the following graph it is very much clear that apart from the
attribute “Refreshing” Nimbooz has to go a long way with 54%
agree and completely agree.
Nimbooz’s price, availability and design and packaging was also
appreciated by the respondents with 46%, 44% and 50% agree and
completely agree.
Nimbooz is not considered to contain natural ingredients.
Nimbooz suffers from drawbacks in the consumers’ perception. Consumers
feel that it is a healthy drink but feel that it contains artificial flavours and is
not natural. This is a serious setback to the company , andit may be due to this
aspect that consumers tend to rate it low on taste as well.
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CUSTOMER PREFERENCE OF NIMBOOZ
Number of respondents that would repurchase Nimbooz.
Frequency Percentage
Definitely 23 46%
Maybe 15 30%
No 12 24%
TOTAL 50 100%
24%
30%
46%
NO MAYBE DEFINITLY
INTERPRETATION
46% of the respondents would definitely purchase Nimbooz
again
30% of the respondents may repurchase Nimbooz
24% won’t purchase Nimbooz again.
It can be inferred that Nimbooz has not been able to satisfy the “asli nimbu paani”
needs of the consumers, since the the customer retention quotient and repurchasers
are only 46%. The company needs to focus on this aspect hence.
Drinks (apart from Nimbooz) preferred by respondents.
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CUSTOMER PREFERENCE OF NIMBOOZ
Drink preferred Frequency Percentage
Fruit juice 31 62%
Mirinda lemon 5 10%
Coke limca 6 12%
Other cola drinks 8 16%
TOTAL 50 100%
62%10%
12%
15%
Fruit juice Mirinda LemonCoke Limca Other Coal Drinks
INTERPRETATION
62% of the respondents prefer natural fruit juices.
12% of the respondents prefer limca.
10% of the respondents prefer mirinda lemon.
16% of the respondents prefer other cola drinks which include
thumbs up, coca cola etc.
6. Improvements needed by Nimbooz.
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CUSTOMER PREFERENCE OF NIMBOOZ
Frequency Percentage
Taste 13 26%
Packaging 6 12%
Promotion 10 20%
Reduction in price 10 20%
Variety 11 22%
TOTAL 50 100%
13
6
10
10
11
Taste Packaging Promotion Reduction in price Variety
INTERPRETATION
26% of the respondents think taste needs improvement.
20% of the respondents think price needs improvement
20% of the respondents think variety needs improvement
12% of the respondents think packaging needs improvement
22% of the respondents think promotion needs improvement
It can be inferred that taste and variety are the two most important
attributes that the consumers feel needs improvement.
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CUSTOMER PREFERENCE OF NIMBOOZ
Even though advertisements of Nimbooz are well ranked consumers feel
that promotions need to be concentrated upon. This indicates a need for
stronger sales promotion.
A reduction in price might be sought by consumers since competing
brand LMN offers tetra packs of 110ml for Rs 5 only. Although the
tetra pack of Nimbooz is of 200ml for Rs 10, the content and volume of
the pack does not really impact the consumers perception.
FINDINGS
The majority of the respondents consume soft drinks and fruit juices.
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CUSTOMER PREFERENCE OF NIMBOOZ
There has been a sudden rise in the release of fruit based by drinks by all leading
companies of the industry. Other fruit based non carbonated drinks like Appy fizz and Fanta
apple had also been launched.
The total size of the Indian juice market would be around one billion cases, including the
unorganized market. However, the packaged branded juice market would be very
insignificant. The focus is to drive the market as well as gain momentum of growth with the
launch any product in this market.
Nimbooz was market share leader from its launch to 2010 after which Minute – maid
took over in terms of sale.
Nimbooz has been positioned as a real lemon flavor drink which is proven to be a strong
suit as the main criteria found for purchase of drinks was flavor and health reasons.
Nimbooz has been especially made for Indian consumers. The main theme is freshness. It is
promoted under the 7up brand of Pepsi co.
Although respondents had tried Nimbooz, but it fails to create brand image along with its
competitors. That’s where they are losing their edge over its competitors.
Minute- maid and Nimbooz are clearly in close competition both being Coke and Pepsi
brands respectively. Nimbooz is also facing strong competition against coke’s LMN.
The competition is very high; Nimbooz was the first to be launched in February 2009
with minute- maid in March and LMN in April in the same year.
Its target market is the “common man”. The lemon market is mostly an unorganized market.
It targets at frequent consumption for traditional and modern homes.
Nimbooz is targeted at the mass market and is priced at Rs 10 for a 200 ml bottle and Rs 15
for 350 ml bottle.
Nimbooz is viewed as a refreshing having a distinct taste with good pricing and availability.
The taste and variety need improvement.
RECOMMENDATIONS
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CUSTOMER PREFERENCE OF NIMBOOZ
Nimbooz is considered to be inferior to Minute Maid Nimbu Fresh in terms of
taste. Hence this aspect should be focused on through Research and
Development.
Consumers feel that Nimbooz lacks “variety” so the company could consider
introducing newer versions like:
Nimbooz Ginger Twist (gingerale)
Nimbooz Honey Twist
Nimbooz Mint Twist (Mojito)
Nimbooz must focus on promotion as the consumers remember the
advertisements but sales promotion is low.
It should initiate strategies to encourage trial. Free
samples should be distributed outside colleges, malls ,
offices etc.
Nimbooz should have tie ups and sponsor college fests and other
events which attract the youth and promote itself in such places.
Nimbooz has now been in the market for 2 years, hence it should now consider
contracting a famous personality like a sportsperson or a Bollywood star is its
endorser.
All major beverages in India follow it as it appeals to the
masses which idolizes celebrities
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Furthermore since neither LMN nor Minute-Maid has implemented this
strategy yet it would give Nimbooz a comparative brand advantage.
Every possible step should be taken for the satisfaction of the consumers as they are
the most important supplement to the sales promotion measures and nationwide
advertising campaigns of the company in context of boosting the sales and
enhancement of the brand image of Nimbooz.
Customer retention and repurchase by consumers is a major area where Nimbooz is
lacking, hence it should initiate sales promotion techniques to secure a larger
customer base. Suggested strategies are:
FOR THE OFFICE GOERS-Provide a free pen with every 2 pet bottles of
Nimbooz.
FOR THE HOUSEWIVES-
Buy 2 kg of lemon from the grocery shop and get a tetra pack of Nimbooz
free.
On every purchase of grocery worth Rs 500 get a pet bottle of Nimbooz free.
GENERAL:
Sell Nimbooz at traffic signals.
Introduce a newspaper coupon where customers getting the cut out will get a
discount of Rs 3.
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CUSTOMER PREFERENCE OF NIMBOOZ
Introduce schemes like get 5 caps of the glass bottle or the pet bottle and get a
Rs. 5 off.
The company should modify its advertising strategy
and educate the customers about its age-old
existence and enhance its brand image.
Furthermore children should be attracted and
targetted in the advertisements as the study reveals
that Nimbooz is not a very “child appealing”
beverage.
Rural market being a very potential segment needs very quick and prompt efforts to
be taken to capture this high volume market.
They need to take strategic action to survive in such a competitive market.
Nimbooz needs to set aside from its competitors LMN and minute-maid.
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CUSTOMER PREFERENCE OF NIMBOOZ
CONCLUSION
Nimbooz will appeal to consumers across all age groups. In spite of the presence of a
mushrooming carbonated soft drink industry, homemade nimbu paani is still preferred by many
across the Country. Nimbooz is not pitching against the homemade nimbu pani, but offering a
drink that is as healthy and hygienic. The proposition of the Indian refresher perfectly captures
the mass appeal of this product and will certainly drive consumer connect. Nimbooz will be
relevant and affordable offering for consumers of India on the go because of its ready-to-drink
format that is both convenient and hygienic.
PepsiCo introduce Nimbooz, a packaged nimbu paani offering specially developed to suit Indian
tastes and preferences. Nimbu paani is a well loved Indian drink and Nimbooz brings consumers
this well-loved taste backed by PepsiCo quality. Peoples demand Nimbooz because Nimbooz is a
delicious nimbu paani, with real lemon juice, no fizz, and no artificial flavours, available in
trendy, convenient packs.
On the whole, this product will be a great success since it is launched in the beginning of
summer and pricing also suits the all type of consumers.
Nimbooz is a brand in itself Nimbooz, amazing taste. It is like rebirth of Nimbu- pani with a new
refreshing and energetic taste. Definitely the product is giving great and tough competition to the
other drinks of its segment.
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CUSTOMER PREFERENCE OF NIMBOOZ
BIBLOGRAPHY
Books-
Kotler, Philip – Marketing Management, Perntice Hall, 13th edition Sherlekar, S.A. –Marketing Management, Himalaya Publishing House, 10th edition
Journals-
Neering, Patricia A., THE PEPSI CHALLENGE: CAN THIS SNACK AND SODA
GIANT GO HEALTHY?, Fortune; 3/3/2008, Vol. 157 Issue 4, p54-66, 9p
Morris, Betsy, Packaged Beverages ,Convenience Store News; 4/17/2006, Vol. 42 Issue
5, p41-52, 7p
Spiggle, Susan, AS COST OF BEVERAGES SOARS, SO DOES BEVERAGE
CONTAINER WASTE, In Business; Mar/Apr2007, Vol. 29 Issue 2, p8-8, 1/5p
Phillips, Bob, Outside the bubble, Progressive Grocer; 2/1/2008, Vol. 87 Issue 2, p44-47.
Zmuda, Natalie, Who are the big Pepsi Refresh winners? Local bottlers and community
groups, Advertising Age; 11/1/2010, Vol. 81 Issue 39, p2-22, 2p.
Internet-
www.google.com www.pepsicoindia.co.in www.livemint.com www.ebsco.com www.afaqs.com
Newspaper articles-
economic times the hindu
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ANNEXURE
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CUSTOMER PREFERENCE OF NIMBOOZ
I, Kanika Singhania a B.Com student of St. Xaviers’ College am conducting a survey on the
market performance of Nimbooz. This information will be used for academic purposes only.
NAME:
AGE
o 15-25
o 26-35
o 36-45
o 46 and above
GENDER:
o male
o female
OCCUPATION:
o employed
o business
o student
o Other
1. What type of drinks do you prefer?
Carbonated
Energy
Nimbo-pani
Fruit based
2. Why do you prefer them?
Flavor
Advertisements
Packaging
Other – specify
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CUSTOMER PREFERENCE OF NIMBOOZ
3. How often do you purchase the drinks?
Daily
Weekly
Monthly
Once a month or less
4. Among the Nimbo-pani flavored drinks which do you prefer?
Lmn
Nimbooz
Minute-made
5. Have you tried Nimbooz?
Yes
No
6. Do you think Nimbooz has a distinct taste?
Yes
No
7. Who do you enjoy drinking Nimbooz with?
Family
Friends
Alone
8. Do you think kids would like to drink Nimbooz?
Yes
No
9. Do you think it relieves stress?
Yes
No
10. Do you consider it good for health?
Yes
No
11. Pleases grade(number) the following attributes of Nimbooz on basis of :
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CUSTOMER PREFERENCE OF NIMBOOZ
1. Completely disagree,
2. disagree,
3. neither disagree or agree,
4. agree,
5. completely agree
Good taste
Reputed brand
Good for health
Natural ingredient
Refreshing
Drink for youth
Availability
Price
Design and packaging
12. Will you purchase Nimbooz again?
No
Maybe
Definitely
13. If not Nimbooz what would prefer?Why?
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14. What do you think Nimbooz needs improvement?
Taste
Packaging
Promotion
Needs variety
Reduction in price
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