The bottling and canning, fruit juices bottling, canning

The objective of the study is to find out whether the consumer
preference of soft drink is shifting from carbonated drinks to non-carbonated,
milk products and energy drinks. As the old companies or competitors such as
PepsiCo and Coca-cola market share is shrinking from the last couple of years
with the increasing of new rivals such as Dabur, Parle,
Hector beverages , ITC, Manpasand, Beverages by producing some healthy
beverages which push the cola giants into a corner.

The beverage industry consists of two major categories and eight
sub-groups such as Non-alcoholic and alcoholic. The non-alcoholic categories
consists of soft-drink syrup manufacturer, soft drink and water bottling and
canning, fruit juices bottling, canning and boxing, the coffee industry and the
tea industry. The alcoholic categories include distilled spirits, wine and
brewing. Many of these beverages including beer, wine and tea have been around
for thousands of years, but the more health conscious atmosphere in Europe and
North America in the 1990s has led to the flat market growth in the alcoholic
beverage industry with demand shifting to non-alcoholic beverages.

A soft drink is also called soda,
pop, coke, soda pop, fizzy drink, tonic, seltzer, mineral, sparkling water,
carbonated beverage is an beverage that typically contains water usually a
sweetener and usually a flavoring agent. The sweetener may be sugar,
high-fructose corn syrup, fruit juice, sugar substitutes some combination of
these. Soft drinks may also contain caffeine, colorings, preservatives and
other ingredients. Soft drinks are called “soft” in contrast to
“hard drinks” (alcoholic beverages). Small amounts of alcohol may be
present in a soft drink, but the alcohol content must be less than 0.5% of the
total volume if the drink is to be considered non-alcoholic. Fruit juice, tea,
and other such nonalcoholic beverages are technically soft drinks by this
definition but are not generally referred to as such. Soft drinks may be served
chilled or at room temperature, and some, such as Dr. Pepper, can be served
warm. The first marketed soft drinks in the Western world appeared in the 17th
century. They were made of water and lemon juice sweetened with honey.

SOFT
DRINK MARKET IN INDIA:

India Soft drink
market had been led by top two companies from last three decades PepsiCo
entered India in 1989 and Coca-cola re-entered the market in 1993 in a dramatic
manner at Agra they ruled over the Indian market. But in the past couple of
years the hunters are being hunted in India’s 60,336 crore soft drink market
both PepsiCo and Coca-cola find themselves on the same side of the fence as old
and new rivals such as Dabur, Parle, Hector beverages , ITC, Manpasand Beverages
and a host of others had managed to push the cola giants into a corner through  some innovative healthy beverages , smart
positioning and deft moves in the market place which PepsiCo and Coca-cola
failed to see. In now days it is becoming increasingly difficult to ignore the
existence of soft drink in today’s market as the consumption of  soft drink has steadily increased with
technological advances in production and increased product availability. In a
recent statistics it has been found that 47% of the Indian population is
composed of persons below 30 years of age, the per-capita consumption of India
remains very low, at approximately 5.2 liters against the world nearly around
85.22 liters which shows huge potential for soft drink markets in India.

CONSUMER
PREFERENCES:

Consumer preferences
can be defined as the individual tastes, as measured by utility, of various
bundles of goods, which permit the consumer to rank these bundles of goods
according to the levels of utility they give the consumer. Hence the
preferences are independent of income and price. The ability to purchase goods
does not determine consumer likes and dislikes. The consumer objective is
always to choose the bundle of goods which provides the greatest level of
satisfaction as the consumer define it. However the consumers are very much
constrained in their choices hence these constraints are defined by the consumer
income and the prices consumer pays for the goods. Consumer value is measured
in terms of the relative utilities between goods and these reflect the consumer
preferences.