Consumer Decision Analysis For Purchase of Fruit Drinks: A Report On

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Amity Business School

AMITY UNIVERSITY
UTTAR PRADESH

A Report On
Consumer Decision Analysis
For
Purchase of Fruit Drinks
Table of Contents

1. Executive Summary
2. Introduction
 Industry Background
 Objectives of study
3. Approach to the problem
 Data collection methods
 Sampling
 Measurement
 Limitations
4. Data Analysis
5. Results
6. Conclusion
7. Annexure I – Tables & graphs
8. Annexure II - Questionnaire
9. Annexure III - Exhibits

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Executive Summary

This project aims to find out the various factors influencing the consumer decision while
making a purchase of a fruit drink in the age group of 19-30 in the city of NOIDA.
Background talks about various factors that have led us to undertake this study and how
and to whom this report will benefit. Objectives talks of types of data the research project
will generate and how these data is relevant. A statement of value of information is also
included in this section. Research approach gives a non technical description of the data
collection method, measurement instrument, sample and analytical techniques.

Due to these changes in the beverage market there is a need to identify and evaluate the
reasons for the shift in the consumer purchasing pattern. This study aims to determine the
factors influencing the consumer decision while buying fruit drinks in the age group 19-
30 in the city of NOIDA.

We also need to study the factors that are now driving the consumer’s purchasing
decision. Also, due to the increase in the competition there is a need to determine the
awareness levels for the various brands amongst the consumers. With the availability of a
number of channels of distribution for the beverages in India, we will also try to identify
the most preferred shopping channel of beverages for a consumer.

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Introduction

Industry Background

The beverage market in India is worth 2074.67 Million INR. Though the major portion of
the market is still dominated by the carbonated soft drinks there is major shift towards the
Juice segment. There was a growth of 31.52% in the Juice segment from 2007 to 2008.
As a result of this phenomenal growth, a lot of competition has entered the market. A
number of new brands have flooded the market. The competition from Indian beverages
such as Sugarcane Juice, Buttermilk, and Fresh Juices etc has also captured a sizeable
share of the market.

However, the fruit juice market has not been fully tapped because of poor infrastructure,
poor storage facilities, and highly unorganized market, chiefly constituted by road side
vendors. Consumers still prefer to buy juices from road side vendors even if the juices are
unhygienic. The major growth drivers in fruit juice market are, increase in health
consciousness among consumers, increase in disposable incomes, and more sophisticated
cocktail culture.

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The major players in the fruit juices market are:

 Pepsi with its brand Tropicana


 Dabur Foods with its brand Real
 Coca Cola India with its brand Maaza

The market can be categorized in terms of product content and there are three major
product contents available.

· Drinks: Juice with pulp content less than 40%,


· Nectars: Juice with pulp content between 40 - 80%
· Juices: Juice with pulp content more than 80%

The canned juice market initially covered brands like NAFED, Noga, Midland, Gold
Coin and Druk. These were fruit juices and nectars and not drinks. But they did not make
a mark in the market due to reasons such as high price, unattractive packaging and lack of
right promotion programme.
Parle Agro’s Frooti, a mango drink, was introduced in the tetra pack in 1985 and since
then has been a leader in its segment. The market has suddenly picked up since 1994- 95
and a few players have emerged as market leaders.

The Indian lifestyle has a traditional predilection for fresh fruits and vegetables or those
processed at home. People go in for fresh fruits vending from kiosk fountains, which
produce instant juices from fresh fruits in the presence of the consumer.

One reason is the unavailability of hygienically produced and well- preserved products
with the use of preservatives. The fact that it is packed denies its freshness. This was also
a reason why some of the real but branded fruit juices launched in the late 1980’s and
early 1990’s did not succeed.

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Taste is often the secondary consideration in the Indian market for beverages. Fruit juices
also lose on roughage, which is an important part of fruit nutrition. Few people know the
difference between a juice and nectar.

In general, the Indian consumers have become health conscious now and are looking for
healthy and natural appetizing juices. They are moving away from synthetic drinks to
natural and wholesome fruit juices.
At present;
· Per capita consumption of juices in India is estimated at a fraction of a litre i.e. 200ml.
· The consumption of fruit juices in take home packs is estimated at 17250 mnlt.
· Consumers go for convenient and economy products.
 So small packs are well suited for travelers and children and large take home
packs for families and price conscious people.
· Availability in chilled form and brand awareness plays a crucial role in purchase
decision.
 This has implications for the need for availability of the product and in the right
form.
· While there is no aversion to consumption of fruit beverages by any group, the main
consumers of this market are people in the age group of 30 and below.
 Young adult and teenagers predominantly consume tetra pack drinks.
· Brand loyalty is very low, as all the products taste the same.
 But brand loyalty is high in case of kids.
 Though there is a lot of difference between brand awareness and brand loyalty.
· Consumers are money conscious where the purchase of fruit beverages is concern.
· Consumers are not ready to explore the market.
 They do not want to change their taste and are stuck to their old brands.
 Orange and other drinks are slowly picking up and breaking the loyalty towards
old brands.

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Objectives

Primary research objective

To determine the factors influencing the consumer decision while buying fruit drinks in
the age group 19-30 in the city of NOIDA.

Secondary research objective

• To determine the product attributes influencing purchase decision of fruit drink


brands.

• To determine the reasons for consuming various fruit drink brands.

• To determine the most preferred channel in the fruit drink category.

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Value of Information to Management

This report aims to generate information on various factors influencing consumer


decision while purchasing a fruit drink. Companies can utilize this information for
identifying the awareness levels of their respective brands in the fruit drink category.
Also companies can evaluate their positioning and promotion strategies based on the
factors influencing the choice of a particular fruit drink brand. The information on factors
influencing the choice of a channel can be used to focus on the growing channels and also
in managing existing channels.

Research Approach

Data collection methods

a) Secondary Research

External secondary data has been generated to obtain volume of sales regarding beverage
markets, fruit drinks, each of the brands and the positioning of each of the brands.

b) Survey Research
Data was collected from candidates using questionnaire. The questionnaire was
distributed in college students and to young professionals.

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Measurement Instruments:
• The measurement instrument in the questionnaire was a five point Likert scale.
• The data was extracted and put in MS Excel.

Samples

The aim was to collect 40 samples for the analysis.


Sampling method used was Simple Random Sampling, which meant that each element
had an equal chance of being included in the sample. The samples were be such that they
are consumers of fruit drinks. We also tried to get an adequate ratio of men and women in
the samples. The main demographics targeted were the younger age group as they are
more health conscious and aware of such health drinks. Also we tried to focus more on
the college going crowd and young professionals as they would be more interested in
trying out new products and were more conscious.
Buyers who have been consuming fruit drinks were better able to answer the questions
regarding the influencing factors and the reasons for their consumption and purchase.

Analysis Techniques

The data was analyzed using MS Excel wherein the responses with respect to various
questions were tabulated and graphically represented.

Limitations:

• The main limitation is the sampling conducted. It was done in a random manner
and no particular technique followed. In the first survey a greater number of

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college students have been surveyed. The data might not be representative of the
entire population.
• Primarily only table and graphs were used to analyze the data.
• Since no data was on interval or ratio scale it was not feasible to conduct
Regression and ANOVA.

Conclusion

On the basis of the data collected and the tests conducted we have arrived at the
following conclusions:

It can be observed that with the increase awareness of importance of healthy living and
lifestyle many youngsters have taken a liking to fruit drinks alienating the consumption
of aerated and cola drinks. This is a phenomenon that has recently gathered momentum
since the past decade has primarily seen the rule of cola preference.

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Table 1 shows that 31 out of 40 candidates purchase fruit drink for personal consumption
the rest being for family. This was a highlighted mainly because the target population
consisted more of college students.

While analyzing the frequency of purchase of fruit drink it can be understood that the
first category that is purchasing the drink 1 – 3 times a week had the high frequency
gradually decreasing in descending order. This indicates that with the increase awareness
of personal health and nutritional importance people have stated consuming fruit drinks
on a more regular basis rather than on situational basis.

The packages of the drinks come in various sizes; one of the questions asked tried to gage
the preference of quantity purchased. An understanding of this would lead to estimating
whether the purchase is restricted to immediate consumption or whether people look at
long term purchase. The results show that 200 – 250 ml pack has the highest frequency of
purchase, followed by 500ml, 1 ltr and 300 ml.

The medium used to gather information about the benefits, importance, values etc is also
very important. The same was targeted to be analyzed, the results indicated that around
50 % of the respondents gathered their information on fruit drinks through TV/Radio
channel. A factor that can be attributed to the increased viewing of TV during leisure
hours and listening to radio while traveling to school, college or work in any mode of
transport. This was followed by Word of Mouth medium an indication that getting to
know the benefits and other information about the fruit drinks from someone know
increased the likeliness of its purchase. Newspapers and magazines accounted to 15 % as
being a preferred source of information.

Table 5 shoes the various factors that lead to the consumption of fruit drinks. From the
graphical representation of the same it can be inferenced that Energy and Well-being
were the two most important factors influencing respondents preference for consumption.
This was then followed by refreshment and taste. Whereas attitude and social occasions
scored the least contributing factor. This reinstates the fact that high nutritional value is

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being emphasized

The respondents have ranked Real Juice by Dabur the most preferred brand for
consumption, followed by Tropicana, Appy, Frooti and Pulpy Orange.

While analyzing the factors for purchasing the fruit drinks the results show that factors
such as price, flavor, cleanliness of packet, manufacturing & expiry date, brand name
were high on preference as opposed to frequency of advertisement, brand ambassador
which scored low.

The preferred channel of purchase results show that retail and grocery stores topped the
preference list followed by supermarket and while analyzing the factors contributing to
the selection of the channel it was found that location and nearness came out as the most
compelling factor. True because in this age of long distance and less time the location
nearness and availability factors matter a lot.

Thus it can be concluded from the research that with the growing awareness of the
importance of well being and healthy diet, living habits, lifestyle and adequate nutrition
the preference for consuming fruit drinks have increased over the years. The younger
generation especially college goers are more health conscious and therefore are particular
about their eating habits. This awareness can be attributed to the increased information on
healthy lifestyle and its benefits in the long run.

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Annexure I

Table 1 – Category of purchase


No. of
Category Respondents

Myself 31
Family 9
Children 0
Institutional purposes/ Social
occasions 0

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Category of Purchase

35
31
30
No. of Respondents

25

20

15
9
10

5
0 0
0
Myself Family Children Institutional purposes/
Social occasions
Category

Table 2 – frequency of Consumption


No. of
Frequency of Consumption Respondents

1 -3 times a week 24
4 - 6 times a week 8
More than 6 times a week 4
Rarely 4

Frequency of Consumption

Rarely

More than 6 times a


Frequency

week

4 - 6 times a week

1 -3 times a week

0 5 10 15 20 25 30
No. of Respondents

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Table 3 – Quantity of Purchase
No. of
Quantity of purchase Respondents

200 - 250 ml 23
300 ml 4
500 ml bottle 7
1 litre 6

Quantity of Consumption

25
No. of Repondents

20

15

10

0
200 - 250 ml 300 ml 500 ml bottle 1 litre
Quantity Purchased

Table 4 – Medium of Information


No. of
Medium of Information Respondents

Hordings & Banners 6


Newspapers & Magazines 3
TV/Radio 20
Word of Mouth 9
Others 2

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Medium of Information

2, 5%
6, 15%

9, 23% Hordings & Banners


3, 8%
Newspapers & Magazines
TV/Radio
W ord of Mouth
Others

20, 49%

Table 5 – Factors Influencing Consumption

Factors Influencing Consumption SD Disagree Neutral Agree SA

Social occassions 4 10 23 3 0
Refreshment 0 5 5 20 10
Enjoyment 0 9 25 6 0
Taste 0 4 10 19 7
Thirst & Filling 0 6 13 15 6
Well Being 0 1 11 22 6
Energy & Vitality 0 3 5 25 7
Relaxing 2 3 15 10 10
Reflects Attitude 7 19 10 4 0

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Factors Influencing Consumption

Reflects Attitude
Relaxing
Energy & Vitality
Well Being SA
Agree
factors

Thirst & Filling


Neutral
Taste
Disagree
Enjoyment SD
Refreshment
Social occassions

0 5 10 15 20 25 30
No Of Respondents

Table 6 – Preference of Fruit Drink

Preference Of Fruit Drink

3
Rank
2

0
Real Tropicana Appy Frooti Pulpy
Orange
Fruit Drink

Table 7 – Factors influencing Purchase


Less Very
Factors Influencing Purchase Not Important Important Neutral Important Important

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Flavor 0 0 9 21 10
No. of flavors 0 5 14 13 8
Availability & Convenience 0 3 11 16 10
Price 0 0 9 26 5
Cleanliness of packet 0 0 7 20 13
Manufacturing & Expiry date 0 0 6 19 15
Frequency of Advertisement 5 14 15 5 1
Brand Ambassador 7 17 11 3 2
Nutritional Value/calorie content 0 0 9 16 15
Brand name 0 5 7 22 6
Promotion schemes/Discounts 2 1 14 15 8
Visual Appeal 0 12 17 10 1

Table 8 – Preferred channel of Purchase


No. of
Preferred Channel of Purchase Respondents

Retail Store/Grocery 25
Supermarket 14
Cineplex 0
Pan Shop/ Kiosks 0
Restaurants 1
Travel 0

Preferred Channel of Purchase


1
0
0 0

Retail Store/Grocery
14 Supermarket
Cineplex
Pan Shop/ Kiosks
25 Restaurants
Travel

Table – 9 - Important characteristics while choosing the channel


Important Characteristics for
Choosing the Channel No of respondents

Pricing 5

18
Ambience 3
Location/ nearness 21
Service 2
Display 3
Reputation 6
Occasion 0

Characteristics for choosing the channel

0, 0% 5, 13%
6, 14%
Pricing
3, 8% Ambience
3, 8%
Location/ nearness
2, 5% Service
Display
Reputation
Occasion
21, 52%

Table 10 – Comparison of consumption patterns in males and females

Frequency of Consumption Male Female


1 -3 times a week 10 13
4 - 6 times a week 4 4
More than 6 times a week 3 2
Rarely 3 1

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Consumption Pattern in Males and Females

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No of respondents

10
8 Male
6 Female
4
2
0
1 -3 times a week 4 - 6 times a week More than 6 times Rarely
a week
Frequency

Annexure II

Questionnaire

QUESTIONNAIRE

1. Whom do you buy fruit drinks for? (Tick one)


a) Myself
b) Family
c) Children
d) Institutional purposes / social occasions

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2. How often do you have a fruit drink?
a) 1-3 times a week
b) 4-6 times a week
c) More than 6 times a week
d) Rarely (fortnightly)

3. What quantity do you usually prefer to buy?


a) 200-250 ml (Tetrapak)
b) 300 ml
c) 500 ml bottle
d) 1 litre

4. Through which medium did you come to know about your preferred fruit drink brand?
a) Hoardings and banners
b) Newspaper and magazines
c) TV/radio
d) Word of mouth
e) Others ……………..

5. Do the following reasons influence your consumption of fruit drinks?

Neither
Strongly Agree Strongly
Reason Disagree Agree
Disagree nor Agree
Disagree
For social occasions / entertainment
It acts as a refreshment
It provides enjoyment
It tastes very good
It satisfies my basic thirst and is filling
I feel a sense of well being after consuming it
It gives me energy and vitality
It relaxes me mentally
It reflects my attitude

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6. Rank the following fruit drinks from 1 to 5, with 1 being least preferred and 5 being most
preferred:

a) Real……………… b) Tropicana………. c) Appy ……………. d) Frooti …………….


e) Pulpy orange
7. How important are the following factors for purchasing a fruit drink?

Not Less Very


Factors Neutral Important
Important Important important
Flavor
No. of flavors
Availability and Convenience
Price
Cleanliness of packet/ not damaged
Manufacturing date /expiry date
Frequency of advertisement
Brand ambassador
Nutritional value/ calorie content
Brand value /brand name
Promotion schemes/discounts
Visual appeal of packaging

8. Which is your most preferred channel for purchasing a fruit drink?


a) Retail store/grocery store b) Supermarket/hypermarket c) Cineplex
d) Pan shop/kiosks e) Restaurants f) Travel
g) Others……………………………….

9. Which is the most important characteristic for choosing the channel?


a) Pricing b) Ambience c) Location/ nearness d) Service
e) Display /merchandising f) Reputation g) Occasion h) Others

Personal Details

1. Name: 2. Contact No.:

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3. Address:

4. Age: a) 17-20 b) 21-24 c) 25-28 d) 29 and above

5. Gender:

a) Male b) Female

6. Education

a) High school b) Undergraduate c) Graduate d) Postgraduate e) Others

Annexure III

EXHIBITS

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