nimbooz new project final

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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http://en.wikipedia.org/wiki/Marketing_research

http://en.wikipedia.org/wiki/Business_strategy

http://en.wikipedia.org/wiki/Markets


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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http://en.wikipedia.org/wiki/Non-alcoholic_beer

http://en.wikipedia.org/wiki/Alcoholic_beverage

http://en.wikipedia.org/wiki/Alcohol_by_volume

http://en.wikipedia.org/wiki/Beverage

http://en.wikipedia.org/wiki/Distilled_beverage

http://en.wikipedia.org/wiki/Wine

http://en.wikipedia.org/wiki/Beer

http://en.wikipedia.org/wiki/Ethanol

http://en.wikipedia.org/wiki/Drink


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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http://www.pepsi.com/


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

27


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.

29


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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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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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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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

40


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.”

41


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.

42


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.

43


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.

44


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

45


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.

46


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?

47


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.

48

http://en.wikipedia.org/wiki/Sales_promotion

http://en.wikipedia.org/wiki/Personal_selling

http://en.wikipedia.org/wiki/Public_relations

http://en.wikipedia.org/wiki/Advertising

http://en.wikipedia.org/wiki/Promotion_(marketing)

http://en.wikipedia.org/wiki/Distribution_(business)

http://en.wikipedia.org/wiki/Pricing

http://en.wikipedia.org/wiki/Product_differentiation

http://en.wikipedia.org/wiki/Hotel_industry

http://en.wikipedia.org/wiki/Tourism_industry

http://en.wikipedia.org/wiki/Mass_produced

http://en.wikipedia.org/wiki/Product_(business)

http://www.marketingteacher.com/Lessons/lesson_place.htm

http://www.marketingteacher.com/lesson-store/lesson-place.html

http://en.wikipedia.org/wiki/American_Marketing_Association

http://en.wikipedia.org/wiki/American_Marketing_Association

http://www.marketingteacher.com/lesson-store/lesson-promotion.html

http://www.marketingteacher.com/lesson-store/lesson-plc.html

http://www.marketingteacher.com/lesson-store/lesson-pricing.html


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


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.

50


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:

51


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.

52


.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

53

http://www.afaqs.com/

http://www.afaqs.com/services/contact.html


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:

54


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

55


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.

56


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

57


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.

58


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.

59


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

60


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.

61


ANALYSIS

62


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



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


(b)Table showing the gender of the respondents.

Gender Frequency Percentage

Male 32 64%

Female 18 36%

TOTAL 50 100%

64%

36%

GenderMale female


64% of the respondents are male

36% of the respondents are female

64


(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


40% of the respondents are students

30% of the respondents are businessmen

12% of the respondents are employed

18% of the respondents are others.

65


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.

66


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.

67


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.

68


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.

69


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.

70


4)Number of respondents that remember Nimbooz advertisements.


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.

71


Number of respondents that think Nimbooz has a distinct taste.


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

72


3. Whom do respondents like to drink Nimbooz with?


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.

73


Number of respondents that think Nimbooz would be preferred by kids.


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.

74


4. Number of respondents that think Nimbooz is a refreshing drink.


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.

75


Number of respondents that think Nimbooz is a stress relieving drink.


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.

76


5. Number of respondents that think Nimbooz is a healthy drink.


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.

77


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

78


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.

79


Number of respondents that would repurchase Nimbooz.


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.

80


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.

81



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.

82


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.

83


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

84


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

85


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.

86


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.

87


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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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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http://www.ebsco.com/

http://www.livemint.com/


ANNEXURE

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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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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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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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nimbooz new project final

Documents