A STUDY ON BRAND PREFERENCE OF SOFT DRINKS AT

MADURAI CITY

BRAND PREFERENCE
The other prior work that also explored the range of attributes that might affect
brand preference is that of Mitchell and Amioku (1985); they conceptualize brand
preference as a bundle of attributes that leads a customer to favor one brand over
another. These attributes are classified into three sets, namely consumer attributes,
product (service) attributes, and market attributes. Brand preference requires careful
planning, a great deal of long term commitment, creativity, designed, and executed
marketing. This means a holistic approach of measuring marketing program offered
by a Firm (Brand Audit) and from the consumers‟ current assessment of knowledge
of the brand equity (Brand tracking studies) Kotler (1994). 10 Within every product
category consumers possess more choice and more information than earlier.so in
order to move customers from trying the product to preference of the brand
marketers need to attain the value customer needs to position them in preference or
remove another from the customers‟ existing preference set. That is why preference
is a scale where brands move up, down and off that scale if management doesn’t
deliver the strategy.
CONSUMER PREFERENCES
Consumer preferences is used primarily to mean to select an option that has
the greatest anticipated value among a number of options by the consumer in order
to satisfy his/her needs or desires. Preferences indicate choices among neutral or
more valued options available. The preference of the consumer is the result of their
behaviour they show during searching, purchasing and disposing the products.
Consumer preferences are defined as the subjective (individual) tastes, as measured
by utility, of various bundles of goods. They permit the consumer to rank these
bundles of goods according to the levels of utility they give the consumer. The
preferences are independent of income and prices. Ability to purchase goods does
not determine a consumer's likes or dislikes. In other words, the consumer has
different preferences over the different combinations of goods defined by the set of
commodity bundles. Consumer preferences are measured in terms of the level of
satisfaction the consumer obtains from consuming various combinations or bundles
of goods. The consumer's objective is to choose the bundle of goods which provides
the greatest level of satisfaction as they the consumer define it. But consumers are
very much constrained in their choices. These constraints are defined by the
consumer's income, and the prices the consumer pays for the goods. Consumer value
is measured in terms of the relative utilities between goods and these reflect the
consumer's preferences.
SOFT DRINKS
Soft drinks can be classified into major heads namely carbonated and non-
carbonated drinks on the basis of their composition. Asoft drink carbonated beverage
is a non-alcoholic beverage that typically contains water a sweetener, and a flavoring
agent. The sweetener may be sugar, high-fructose corn syrup, or a sugar substitute
(in the case of diet drinks).For e.g.:- Coca-cola, Thumbsup, Mountain Dew, Sprite,
7Up, Marinda, Fanta, Limca Appy Fizz, Grappo Fizz. whereas non-carbonated
drinks can be further classified into nectar and juices. Nectar is made from fruit or
vegetables but with 25-99 % juice content and usually with added sugar and juice
mostly contains natural fruit or vegetables. It is prepared by mechanically squeezing
or macerating fresh fruits or vegetables. Juice is always 100 % fruit juice For
example, Saint Juices, Real Fruit and Vegetable Jiuces, Tropicana Juices etc to name
a few.
HISTORY OF SOFT DRINKS

The first marketed soft drinks appeared in the 17th century as a mixture
of water and lemon juice sweetened with honey. In 1676 the Companies de
Limonadiers was formed in Paris and granted a monopoly for the sale of its products.
Vendors carried tanks on their backs from which they dispensed cups of lemonade.

Carbonated beverages and waters were developed from European attempts in

the 17th century to imitate the popular and naturally effervescent waters of
famous springs, with primary interest in their reputed therapeutic values. The
effervescent feature of the waters was recognized early as most important. Flemish
scientist Jan Baptista van Helmont first used the term gas in his reference to
the carbon dioxide content. French physician Gabriel Venel referred to aerated
water, confusing the gas with ordinary air. British scientist Joseph Black named the
gaseous constituent fixed air.

Robert Boyle, an Anglo-Irish philosopher and scientist who helped found

modern chemistry, published his Short Memoirs for the Natural Experimental
History of Mineral Waters in 1685. It included sections on examining mineral
springs, on the properties of the water, on its effects upon the human body, and,
lastly, “of the imitation of natural medicinal waters by chymical and other artificial
wayes.”

Numerous reports of experiments and investigations were included in

the Philosophical Transactions of the Royal Society of London in the late 1700s,
including the studies of Stephen Hales, Joseph Black, David Macbride, William
Brownrigg, Henry Cavendish, and Thomas Lane.
 English clergyman and scientist Joseph Priestley is nicknamed “the father of
the soft drinks industry” for his experiments on gas obtained from
the fermenting vats of a brewery. In 1772 he demonstrated a small carbonating
apparatus to the College of Physicians in London, suggesting that, with the aid of a
pump, water might be more highly impregnated with fixed air. French
chemist Antoine-Laurent Lavoisier made the same suggestion in 1773.

To Thomas Henry, an apothecary in Manchester, England, is attributed the

first production of carbonated water, which he made in 12-gallon barrels using an
apparatus based on Priestley’s design. Swiss jeweler Jacob Schweppe read the
papers of Priestley and Lavoisier and determined to make a similar device. By 1794
he was selling his highly carbonated artificial mineral waters to his friends in
Geneva; later he started a business in London.

At first, bottled waters were used medicinally, as evidenced in a letter written

by English industrialist Matthew Boulton to philosopher Erasmus Darwin in 1794:

By about 1820, improvements in manufacturing processes allowed a much

greater output, and bottled water became popular. Mineral salts and flavours were
added—ginger about 1820, lemon in the 1830s, tonic in 1858. In 1886 John
Pemberton, a pharmacist in Atlanta, Georgia, invented Coca-Cola, the first cola
drink.

INTRODUCTION
In our modern world living pattern and life style of the people have changed
a lot. Soft drinks were common preference among all the individuals with the
changing life style and income levels, people are shifting their consumption patterns.
Market research is based on consumer’s buying preference towards soft drinks. Soft
drink is an important product item in modern society both urban and rural and
becoming more popular in the consumer world. At present soft drink market is one
of the most competitive markets in the world. In which crores of rupees on
advertisement and other promotion activities are being spent. In India the soft drink
industry is flourishing well with a wide range of brand comprising both popular
international, national and regional branded soft drinks. In present investigation, the
impact of globalization on brand preference of soft drinks and the factor determining
the brand preference is studied.

The study on brand preference becomes necessary. The purchase decision

largely depends upon Taste, Quality, Quantity, Price, Availability and the like. Due
to globalization, there are many soft drink brands available in the market such as
Coca- cola, Pepsi-cola, Sprite, Fanta etc..

In current scenario, where the competition is tough, consumer choose

preferred brand according to their pleasure. The company can achieve and complete
in the market, only when they satisfy the needs of the customer by taking in to
account their reason for brand preference.
This study examines key attitude of buying and branding perception that are
considered as important cues, which lead youth to select particular brand of soft
drink. The primary data has been collected through questionnaire.
The origins of soft drinks lie in the development of fruit-flavoured drinks. In
Tudor England 'water imperial' was widely drunk; it was a sweetened drink with
lemon flavour and containing cream of tartar. 'Manays Cryste' was a sweetened
cordial flavoured with rosewater, violets or cinnamon. Another early type of soft
drink was lemonade, made of water and lemon juice sweetened with honey, but
without carbonated water. The Companies des Lemonades of Paris was granted a
monopoly for the sale of lemonade soft drinks in 1676. Vendors carried tanks of
lemonade on their backs and dispensed cups of the soft drink to Parisians. In every
area of the world there are major soft drink producers. However, a few major North
American companies are present in most of the countries of the world, such as Pepsi
and Coca Cola. Major North American producers other than the two previously-
named companies include Cot, Dr. Pepper Snapple Group, and Jones Soda. Pepsi is
one of the most popular and most widely consumed soft drink brand brands in India.
It is the flagship brand of the PepsiCo. India. Pepsi was introduced to India in 1990
and was an instant hit amongst the Indian youth. It grew in popularity rapidly and
never looked back. According to the official website of PepsiCo. India, Pepsi is
loved by over 200 million people worldwide and is the largest selling soft drink
brand in India. Coca-Cola is the world's highest most selling and most popular soft
drink brand by far. However, Coca-Cola has not been able to make the same
impression over the Indian people masses. Nevertheless, Coca-Cola is one of the
most sought-after and largest selling soft drink brands in India. It is the signature
brand of Coca-Cola India. Coca-Cola was re-launched in India in 1993 after a span
gap of 16 years.

These two companies have introduced different brands of soft drinks in order
to attract more consumers. In this perspective, the researcher aims to know the
factors which influence the consumers of branded soft drinks in Salem, Tamil Nadu.

NEED FOR THE STUDY

The main aim of this research study is to analyze the preference of people (of

different age groups) on consumption patterns of Soft Drinks and Consumer

Awareness regarding the hazards of soft drinks.

STATEMENT OF THE PROBLEM

The study is conducted to know the brand preference and factors influencing

young consumers of packaged soft drink. Soft drink is an important product item in

the modern society. It is mainly concentrated on the consumption among youth. It is

found that a great important for the study. The study examines key attitude of buying

and brand perception with preference that are considered as important cues, which

lead youth to select particular brand of soft drink. In modern world due to the

development of science and technology many new brands of soft drink products

flood the market every year. When the new brands enter in to the market, some

consumers switch over to it. So the study was conducted to know the brand

preference and consumption among youth in soft drinks.

OBJECTIVE OF THE STUDY

1. To study the consumer’s preferences of the people for soft drinks.

2. To find out the factor(s) that influences the consumer’s consumption of soft

drinks.

3. To test the know-how of the consumers regarding the various existing

brands of soft drinks.

4. To explore the next best beverage after soft drinks.

5. To find out how the beverage is positioned in the mind of the consumers.
 REVIEW OF LITERATURE

1. Agarwal (2009) in his study on “Use of Soft Drinks Multinational Positioning

Strategy” concluded that rural India has widely diverse cultures and subcultures.
Also, there is large number of like of soft drinks and regular use of consumer’s
soft drinks which vary from region to region and state to state within the country.
This makes the promotion task difficult as the act message has to be delivered in
the local soft drinks according to the rural populations. A low level of literacy of
rural people also leads to the problem of communication for promotion purposes.
The demand for goods and services is seasonal in nature India and it is directly
as well as closely connected with manufacturer of soft drinks which itself is
seasonal. Therefore, there is considerable fluctuation in demand in rural area.
2. Dhandhapani, (1997) in his research work, “A study on the acceptance of
Fountain Pepsi in Madurai City”, revealed that Pepsi consumption was 69.23
percent in the case of 150 sample respondents, and Coco-cola market was only
13.46 percent and thumps up was only 10.36 per cent.
3. Keller (1998) stated from his research that a famous brand mane can disseminate
product benefits and lead to higher recall of an advertised benefit than a non-
famous brand name leading to high recall and repurchase. The last factor studied
was product promotion. Promotion is a component of a marketing mix which
takes the form of commutation between the product and the correct or potential
consumers. Several studies suggest that promotion, especially in form of a
welltargeted advertisement cannot only make the consumers less price sensitive
and more loyal, but also change their knowledge, attitude and behaviour towards
the product.
4. McCracken (1986) contents that these brand associations are created or
developed from brand and product category experience, positing in promotional
communication, or user imagery. Those brands benefit from associations with
endorsers, because endorser acquire or possess a variety of desirable meaning
(e.g., Pepsi becomes more attractive to teenagers when endorsed by Madonna,
because of her anti-establishment image).
5. Susana (2010) in their study “Consumer Buying Behaviour in Fashion
Retailing: Empirical Evidences” stated that the consumer behaviour research is
the scientific study of the processes consumers use to select, secure, use and
dispose of products and services that satisfy their needs. Firms can satisfy those
needs only to the extent that they understand their customers. The main objective
of this paper is to study the gender differences in consumer buying behaviour of
a Portuguese population when they go shopping to buy apparel products. To
attain this objective a survey was developed and administered across Portugal.
The findings confirm the differences between women and men especially in
terms of What, Where, When, and How they buy.
6. William R. George (1999) reveals purpose of study of factors responsible for

brand preference in soft drink industry, increasing competition more, due to

globalization is motivating many companies to base their strategies almost

entirely on building brands. Brand preference means to compare the different

brands and opt for the most preferred brand. This brand preference is influenced

by various factors. In the identification of factors affecting the brand preference,

it was concluded that Brand persona is the most effective factor that affects the

brand preference. This Brand persona deals with the personality aspects or the
 external attributes of brand, thus it can be said that consumer prefer any brand

by looking at the external attributes of a brand.

7. Donnelly (2005) said intensity of colour and the flavours are the key drivers

behind consumer acceptance of soft drinks. But packaging and labelling are not

as important for winning over consumers, according to findings published in the

journal Food Quality and Preference, The study involved consumers at different

stages of development and highlights the importance of adopting a “sensory

marketing approach,” said the researchers from French research organisation

Adriant, the University of Rennes. “Companies need to continuously innovate to

maintain market leadership,” wrote the researchers. “When the market is

overloaded the challenge consists in creating innovative products able to attract

and satisfy consumers.

8. Stephen Daniells (2008) said these four factors were identified for the

formulation: four colour intensities), three flavourings, two label types (soft

versus hard), and two pack sizes (standard versus oversize). By using both

quantitative (hedonic testing) and qualitative (focus groups) approaches, the

researchers found that “the main factors which drive consumer preference for

this concept are colour intensity and flavouring”. Indeed, colour intensity

accounted for 43% and flavour 32% of the consumers’ overall liking. “Pack size

and label type are taken into account by the consumer to a lesser extent,” they
 added. “This methodology of a qualitative screening associated to a conjoint

analysis on relevant sensory attributes has shown good performances to fit

consumers’ expectation: it has now to be reproduced, as every brand, concept

and product is a unique combination designed for a specific consumer group,”

concluded the researchers.

9. Beverly J. Tepper (2008) examined the relative contributions of taste and health

considerations on consumer liking and purchase intent of cola drinks. Eight types

of commercial cola drinks were evaluated by 305 adult consumers who also

completed a brief questionnaire on soft drink consumption habits. Data were

analyzed using factor analysis. Results revealed that purchase intent of cola

drinks was strongly related to degree of liking and to several key sensory

attributes including saltiness, drinks flavor and greasiness. These variables

emerged as the first factor in the analysis, suggesting that consumers perceive

these characteristics as being most important in their choice of cola drinks.

Second described a health dimension and was related to respondents' attitudes

toward fat in the diet. Third factor comprised two remaining sensory attributes

(color and crunchiness), which apparently were of minor importance to the

respondents. These data suggest that in spite of current concern about reducing

dietary fat, health remains secondary to taste in the selection of cola drinks for

consumers in this population.

 REFERENCES
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