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Background of The Study: People Will Prefer in New Product Line

The document discusses a study conducted by PepsiCo to analyze declining sales of Pepsi in India. It provides background on PepsiCo and outlines the objectives of the study which are to understand reasons for the sales decline and changes in consumer behavior, preferences for alternative drinks, and impact of health consciousness and COVID-19. Both qualitative interviews and a quantitative survey will be used. Secondary research found competition from healthy brands, a shift to healthier options, and COVID-19 negatively impacted sales. Qualitative interviews found some consumers prefer healthier drinks now and have reduced Pepsi consumption.

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Avantika Saxena
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91 views3 pages

Background of The Study: People Will Prefer in New Product Line

The document discusses a study conducted by PepsiCo to analyze declining sales of Pepsi in India. It provides background on PepsiCo and outlines the objectives of the study which are to understand reasons for the sales decline and changes in consumer behavior, preferences for alternative drinks, and impact of health consciousness and COVID-19. Both qualitative interviews and a quantitative survey will be used. Secondary research found competition from healthy brands, a shift to healthier options, and COVID-19 negatively impacted sales. Qualitative interviews found some consumers prefer healthier drinks now and have reduced Pepsi consumption.

Uploaded by

Avantika Saxena
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Background of the study

PepsiCo, Inc. is an American multinational food, snack and beverage corporation headquartered


in Harrison, New York, in the hamlet of purchase with a product portfolio of 22 brands and
generate $2 billion in their retail sales.
Pepsico’s soft drink Pepsi market share is 19.6% in India and there is a decline in sales of Pepsi
which is a matter to be worried for Pepsi.The research will find out the reasons behind change in
consumer behaviour and decline in sales .The objective of this study is to to know about the
whether the decline in sales due to change in taste and preferences of consumer ,growing health
conscious within consumers, to study what other alternate drinks are preferred by consumers
and to determine the level the consumers are interested in pepsi post covid 19.
The design of the research is descriptive and it involves both qualitative and quantitative analysis
of consumer behaviour.In qualitative analysis we conduct one to one interviews and group
discussion to know about changes in consumer behavior for Pepsi.In quantitative analysis we
will be making framing questinnare and using SPSS for analysis of data.Pepsi need to come up
with serious measures and make changes in their product and marketing strategy to get better
results.

Importance or rationale of the study (how can company use findings of your
research)
Company can use our findings of research in following ways which is mentioned below
 What changes could be made in existing drink(Pepsi)
Our research will study the reasons behind change in their taste and preferences and what
other alternate drinks consumer prefer. It will give Pepsico an idea about what changes
should be made in their existing drink Pepsi in order to meet the consumer required taste
and preferences.
 Is there any relation between the current sales and Covid.
We will also analyze is there any impact of covid 19 on Pepsi if yes what are those
impacts and how Pepsico can make changes into their current product strategy and
marketing strategy in this covid 19 to increase the sales of Pepsi.
 Is there any scope to launch new product line? What can be the attributes that
people will prefer in new product line.
Our research will identify what kind of alternate drinks are preferred by consumers and
what kind of varieties and attributes preferred by consumers this will help Pepsico to
analyze is there any need to launch new product line or new products in the market.
.
Finding from secondary data or existing literature
PepsiCo India has been facing the brunt of sharp decline in its sales of Pepsi soft drink even
before the start of the pandemic. This has happened majorly due to a change in consumer
preferences, increase in competition. Consumers have a high inclination towards healthy
beverages as being fit & healthy is the goal for all most every person no matter what age group.
The market share of PepsiCo has also fallen due to an increase in competition from brands like
Patanjali, Dabur, Parle Agro, ITC Ltd in the beverage category. As of July 2020, PepsiCo has
dealt with a 25% decline in its beverage sales during April- June Quarter. Covid-19 pandemic
has worsened the issues by causing a major dent in sales volume and net revenue.
The Revenue of Pepsi Co India fell by approximately 3% & the company is focusing on
transforming its product portfolio by laying emphasis on beverages which are not carbonated &
high on sugar. Pepsi Co is focusing on building a portfolio which has “Something for Everyone”
by focusing more on healthy and nutritious products. .
Pepsico one manufacturing plant has been closed in wuhan and one in bejing which was working
their operation activities has been stoped after 1 worker tested corona postive and people are
haunted there for the use of pepsico products.
Pepsico saw increase in sales of snacks category as mostly are people in home they are looking
for snacking options and breakfast options.Company is getting well as it has high market in this
segment.Quaker oats revenue increases 23 percent in this Lockdown.Demand for doritos and
Lays has been increased.“Its drinks business, is not doing as well under the tough moves to stifle
the virus, and the company ditched its full year forecast and predicted second-quarter organic
sales would decline at a low single digit rate.

Findings from qualitative research.


We have taken one to one interview of ten respondents who consumes Pepsi.Out of ten people
four people has change their preferences in this covid they are more health consiouness and they
prefer Lassi , flavored drinks and immunity booster drinks like Black coffee and Three
respondents has reduced their consumption rate to drink pepsi because of restriction of their
outdoor visits and also they prefer pepsi more of a occasional drink.
Three people consumption rate of pepsi has not change their level of interest remains same as
that of pre covid levels.We then discuss the findings in our team and came to some conclusions
and findings which is mentioned below.
Hence in the findings we find that consumption rate of Pepsi has been declined, more health
consciousness can be seen now and preference for other healthy drinks and immunity boosters
has been increased.
Management Problem-
To study the change in consumer behaviour for Pepsi

Research problem-
 To analyze the reasons behind decrease in sales of Pepsi and change in consumer
behaviour.
 Does brand need to reposition itself to attract the lost market share.

Research objectives
 To know about the change in taste and preferences of consumer regarding Pepsi.
 To determine the change in preference of Pepsi post covid-19.
 To study is the decline in sales is a result of growing health consciousness within
consumers
 What other alternate drinks are preferred by consumers
 To study with decreasing sales, is the proclivity towards brand is decreasing.
 To study the demographic profile of the consumers.
 To determine the level that customer is interested in Pepsi.

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