CP Smit & Harsh
CP Smit & Harsh
CP Smit & Harsh
On
“Perceptions and Practices related to consumption of energy drinks. -
a study of select energy drinks in Rajkot.”
Submitted to
Institute Code: 727
Institute Name:
B.H. GARDI COLLEGE OF ENGINEERING AND TECHNOLOGY
Offered By
Gujarat Technological University Ahmedabad
Prepared by:
Smit Naliyapara 227270592029
Harsh Raiyani 227270592032
This is to certify that project work embodied in this report entitled “Perceptions and
practices related to consumption of energy drinks. - a study of select energy
drinks in Rajkot.” was carried out by Smit Naliyapara Enrolment no. 227270592029
and Harsh Raiyani Enrolment no . 227270592032 of B.H. GARDI COLLEGE OF
ENGINEERING AND TECHNOLOGY.
This report is for the partial fulfilment of the requirement of the award of the degree
of Master of Business Administration offered by Gujarat Technological University.
_______________
(Examiner’s Sign)
Name of Examiner:
Institute Name:
Institute Code:
Date:
Pla
PREFACE
Before presenting our project that would likely call a survey rather, we would like to
say it is an image of our deep practical studies to whatever we have observed and
analysed.
The purpose of writing a report is to put into work the practical training that is being
imparted to us. Fundamentally the ground for preparation of the report is today’s
information, cultures that requires in depth knowledge of sectors, which gives a clear
and reliable understanding of practical training that we get.
This opportunity helped us to develop and enhance our appetite for learning and
served as a fusion of the theoretical concepts and their practical applications in the
corporate world.
ACKNOWLEDGEMENT
I am here by thankful to the person who spared their valuable time and helped
me a lot in preparation of this project report. There are many people behind making
this report without their help and guidance this report would never have been possible.
Last but not the least I would greatly like to thank my family member who
support me and helped me I would also like to thank my dear friends. And not
forgiving, special thanks to God.
Executive Summary
The consumption of energy drinks has become a daily routine for many
consumers which have observed in this project report. This study examines
Consumers perception and preference of energy drinks from this sample study. It
sought to identify the most preferred energy drink and its brand and their behaviour
amongst consumers, factors that consumers considered in selecting soft drinks, and
the level of consumers satisfaction with selected energy drink brands and their prefer
ability and choice.
In addition it was also sought that the level of the energy drink consumption
varied across selected demographic geographic and at different age group levels. This
also reflects consumers buying behaviour both internal and external such as self-
concept, social and cultural background, age family, attitudes, personality and social
class. Sample survey involving the use of questionnaires was adopted as research
design and findings from the sample.
INDEX
4 Research Methodology
4.1 Research Design
6 Findings
8 Conclusion
9 Bibliography
10 Annexure
1. General Information
India is a country with a population of over 1.3 billion and the youth constitute a
significant percentage of this population. With an increasing number of young
professionals and college students seeking energy-boosting beverages, the Indian
energy drinks market has witnessed a surge in demand. This trend has caught the
attention of many entrepreneurs who want to tap into this growing market.
Energy drinks have come a long way since their humble beginnings as niche
beverages catering to athletes and extreme sports enthusiasts. Over the years, they
have experienced a significant transition, emerging as a mainstream beverage option
enjoyed by a wide range of consumers. India, in particular, has witnessed a
remarkable surge in the popularity of energy drinks – thanks in no small part to the
forays made by beverage giants like PepsiCo and Coca Cola into the space.
Let’s explore the range of energy drinks available in India, how the market has
evolved, and the emerging flavour categories that are gaining popularity.
The Indian energy drink market was valued at around INR 2,400 Crores in 2022, and
is expected to grow at about 40% to 50% annually. What is truly incredible, however,
is the remarkable growth of the affordable segment of energy drinks, which clocks in
at a whopping 140% annual growth rate. As recently as 2019, premium energy drinks
held 95% of the market share in terms of value, whereas now, the pie is split almost
evenly between the premium and affordable offerings.
In India, energy drinks are now available across price points, catering to different
consumer preferences and budgets. Premium energy drinks claim higher-quality
ingredients, unique formulations, and sophisticated packaging. Brands like Red Bull
and Monster Energy fall into this category, commanding a premium price point while
targeting a more discerning consumer base.
On the other end of the spectrum, newer entrants to the market, such as PepsiCo’s
Sting and Coca-Cola’s Charged, provide affordable, energy-boosting solutions
without compromising on taste and effectiveness. Other examples include Tzinga and
Cloud 9, which have successfully captured a notable market share by appealing to
cost-conscious consumers.
The tremendous growth in demand for energy drinks, particularly in the affordable
segment, has presented local and regional beverage manufacturers with the perfect
opportunity to strike while the iron is hot and carve out their share of the market. This
massification of energy drinks can be attributed to several factors. Increased
awareness about the benefits of energy-boosting beverages, coupled with aggressive
marketing campaigns targeted at new consumer segments, have contributed to a more
widespread acceptance. Additionally, changing lifestyle patterns, including longer
working hours and a desire for instant energy, have fuelled the demand for such
beverages. The ease of availability, both offline and online, has further contributed to
the mainstream adoption of energy drinks across price points.
The Evolution of Flavours In Energy Drinks:
Energy drinks are no longer limited to traditional flavours. Today, they come in a
wide range of options, appealing to diverse taste preferences. Fruit-flavoured energy
drinks, in particular, have gained immense popularity, with flavours profiles like
citrus, berry, and tropical fruit dominating the market. These flavours offer a
refreshing and vibrant experience to consumers, enhancing the overall appeal of
energy drinks. Brands like Rockstar and Burn have successfully capitalized on the
fruit flavour trend.
Another emerging flavour category is coffee-infused energy drinks. With the rising
popularity of coffee culture, brands like Monster Energy’s Java Monster and
Starbucks’ Doubleshot Energy have created a niche for themselves by combining the
energy-boosting properties of energy drinks with the rich flavour of coffee. These
offerings cater to consumers seeking an energy kick with a distinct coffee taste.
As consumers become more conscious of their health and wellness, there is a growing
demand for energy beverages made with natural colours, flavours, and extracts.
Natural ingredients not only provide a healthier alternative but also cater to
consumers’ preferences for clean-label products. Brands have the opportunity to meet
this demand by developing energy beverages that are free from artificial additives and
preservatives.
The current energy drinks market in India is around Rs 500crores. In 2010, the total
consumption of energy drinks stood at around 1.5 million cases of 24 cans.
Awareness among consumers is on the rise. India's impressive economic growth has
pumped in enormous sums of money into the middle and upper class households. This
has resulted in a substantial increase in lifestyle expenses. Energy drinks have become
an urban phenomenon.
The India Energy Drinks Market size is estimated at 0.74 billion USDin 2024, and is
expected to reach 1.01 billion USD by 2030,growing at a CAGR of 5.46% during the
forecast period (2024-2030).
The India Energy Drinks Market is fairly consolidated, with the top five companies occupying
91.84%. The major players in this market are Anheuser-Busch InBev SA/NV, Monster
Beverage Corporation, PepsiCo, Inc., Red Bull GmbH and The Coca-Cola Company.
Red Bull GmbH
PepsiCo, Inc.
Other important companies include BPI Sports, LLC, Ghodawat Consumer Limited,
Hector Beverages Private Limited, Hell Energy
MagyarországKorlátoltFelelosséguTársaság, Ocean Drinks Private Limited,
Radiohead Brands Private Limited, Tata Consumer Products Ltd.
In the last few years, energy drinks have faced increasing health concerns globally
due to their high caffeine content. A growing emphasis on health coupled with
improved disposable incomes has led to a growing preference for natural alternatives
of energy drinks. Growth in organic food industry can be used as an indicator to study
shift in consumer preferences. Indian organic food market is growing at an annual rate
of 46%.
Red Bull energy drink is sold globally with the effect of improving physical energy
and instantly reviving a sluggish spirit. With its characteristic sweet-sour flavor and
attractive scent, Red Bull is always the leading energy drink brand – the number 1
best-selling beverage globally. Bringing this company millions of dollars in profits.
What sets Rockstar apart from other energy drinks is their special energy blend,
combining caffeine, taurine, and B vitamins. This unique blend provides the energy
you need to power through even the most challenging days without weighing you
down.
This Cloud 9 energy drink has a great taste and flavor this energy drink contain Sugar,
TaurineMalto Dextrin, Caffeine for energy boosting and vitamin B3, B2,B6& B12. It
is perfect energy drink when you going out somewhere and during the work want to
instant refreshment. this drink contain high quality ingredient and it comes in two
flavour Cloud 9 Classic and Cloud 9 berry Mix you can try any flavour as your
preference or wish. Also the bottle was packed in eco-friendly recyclable Packaging.
3. Threat of New Entrants : The threat of new entrants to the energy drink market in
India is moderate. While the market is dominated by a few major players, the low
barriers to entry in terms of production facilities and distribution networks make it
relatively easy for new companies to enter the market. However, building brand
recognition and competing with established brands can be challenging.
This analysis highlights the dynamics and challenges within the energy drink industry
in India, including the influence of suppliers, buyers, potential entrants, substitutes,
and existing competitors.
PESTEL Analysis
1. Political Factors :
- Government regulations: Regulations regarding the labeling, marketing, and
distribution of energy drinks can impact the industry. Changes in regulations related
to health and safety standards can affect manufacturing processes and product
formulations.
- Taxation policies: Changes in tax rates or imposition of new taxes on sugary
beverages can influence pricing strategies and consumer demand.
2. Economic Factors :
- Economic growth: India's economic growth can impact consumer spending power
and willingness to purchase energy drinks. Higher disposable incomes may lead to
increased consumption, while economic downturns could result in decreased sales.
- Exchange rates: Fluctuations in exchange rates can affect the cost of importing
ingredients or packaging materials for energy drink manufacturers.
3. Social Factors :
- Health consciousness: Increasing awareness of the health risks associated with
excessive consumption of sugar and caffeine may influence consumer perceptions and
preferences for healthier alternatives.
- Lifestyle trends: Busy urban lifestyles and a growing young population may
contribute to the demand for convenient energy-boosting beverages.
4. Technological Factors :
- Product innovation: Advancements in technology may lead to the development of
new formulations, packaging designs, or delivery methods for energy drinks.
Companies investing in research and development to create healthier or more
effective products may gain a competitive advantage.
- Manufacturing processes: Automation and efficiency improvements in
manufacturing processes can affect production costs and the ability to meet consumer
demand.
5. Environmental Factors :
- Sustainable sourcing: Increasing consumer awareness of environmental issues may
drive demand for energy drinks made from sustainably sourced ingredients or
packaged in eco-friendly materials.
- Waste management: Concerns about plastic pollution and waste disposal may
influence consumer preferences for energy drinks with recyclable or biodegradable
packaging.
6. Legal Factors :
- Health and safety regulations: Compliance with food safety and labeling
regulations is essential for energy drink manufacturers to avoid legal issues and
maintain consumer trust.
- Advertising regulations: Restrictions on advertising to minors or claims related to
health benefits may impact marketing strategies within the industry.
3. PRIMARY STUDY
Firstly, the increasing availability and marketing of energy drinks in Rajkot may have
significant implications for public health, particularly concerning the potential risks
associated with excessive consumption, such as caffeine intoxication, cardiovascular
issues, and adverse effects on mental health. Additionally, the cultural and
socioeconomic factors unique to Rajkot may influence individuals' attitudes and
behaviours towards energy drink consumption, warranting a focused investigation.
Despite the growing popularity of energy drinks in Rajkot, Gujarat, there is a lack of
comprehensive understanding regarding the perceptions and practices surrounding
their consumption. This presents a significant gap in knowledge, as the prevalence of
energy drink consumption continues to rise, particularly among young adults and
adolescents. Without a clear understanding of the motivations, patterns, and potential
health implications of energy drink consumption in Rajkot, it becomes challenging to
develop targeted interventions and regulatory measures to promote safer consumption
practices and protect public health.
Therefore, this study aims to investigate the perceptions and practices related to the
consumption of select energy drinks in Rajkot, with a focus on understanding
prevalence rates, motivations, patterns of consumption, awareness of health risks, and
socio-cultural influences. By addressing these gaps in knowledge, this research
endeavour seeks to contribute to the development of evidence-based strategies to
promote healthier beverage choices and mitigate potential risks associated with
energy drink consumption in the local population.
3.4 OBJECTIVE OF THE STUDY:
II. To examine the frequency and patterns of energy drink consumption among
residents of Rajkot, including any associations with lifestyle factors and
habits.
III. To assess the awareness and understanding of potential health risks associated
with energy drink consumption among consumers in Rajkot.
The method used to gather information and information for the cause of making
enterprise selections. The method may additionally include booklet studies,
interviews, surveys and different studies strategies, and could encompass both gift and
ancient statistics.
Research may be very extensively defined as systematic amassing of facts and data
and its analysis for development of expertise in any problem. Research attempts to
discover solution intellectual and realistic questions via application of systematic
methods.
Types of Research Methodology: -
1. Descriptive and Analytical
2. Applied and Fundamental
3. Qualitative and Quantitative
4. Conceptual and Empirical
3. Quantitative studies research such aspects of the research concern which aren't
quantifiable, and therefore not issue to dimension and quantitative evaluation.
Quantitative Research makes full-size use of measurements and quantitative
evaluation techniques.
The study focus specifically on Rajkot, Gujarat, India, examining the perceptions and
practices related to the consumption of select energy drinks within this locality.
The research investigate a specific set of energy drink brands available in Rajkot,
chosen based on their popularity and availability within the local market.
Sample size 59
Primary data: -
Primary data means which are amassed by means of distinct strategies like
questionnaire, a depth interview, survey, schedules and many others. In this venture,
number one records have been gathered via the method of questionnaire.
• Survey
1) Mail
2) Telephone
3) Personal
Secondary data: -
Secondary data means facts which are already to be had i.e. they consult with the data
which have already been accumulated and analysed by means of someone else.
Usually posted records are to be had in: various booklets like primary, country/nearby
governments or foreign governments, technical and alternate journals and many
others. The secondary statistics worried this project has been collected from the
scientific magazine, literatures and internet.
• Internal sources
1) Records
2) Marketing data bank
• External sources
1) Reports
2) Internal
DATA COLLECTION INSTRUMENT:
QUESTIONNAIRE: -
The form of questions may be open ended and Close ended. Closed ended
questions are the possible answers and provide answers that are easier to Interpret and
tabulate.
Open ended questions allow respondents to answer in their Words and often
reveal more about people thinks. They are especially useful in exploratory research,
where the researcher looking for insight into how People think Rather than measuring
hoe merely people think a certain way.
The source of data is primary source and the method of collection of primary data is
by way of questionnaire.
SAMPLING DESIGN:
• Sampling Size
Sample: all of the objects consideration in any field of inquiry constitutes a universe
for population. In this research just a few items can be decided on shape the
population for our take a look at reason. The gadgets decided on represent what's
technically known as a sample. Here out pattern length is one hundred clients from
the total population to behaviour observe.
The sample size of this survey is 59
• Sampling Method
Gender:
A) Male
B) Female
Gender
42%
58%
Male Female
INTERPRTATION
The majority of respondents are male 58%, with females making up the remaining
42%.
Age
A) 18-22
B) 23-27
C) 28-32
D) 33-37
Age
3%
12%
37%
48%
INTERPRTATION
The largest age group is 23-27 years old 47%, followed by 18-22 years old 37%,
indicating a younger demographic.
Occupation
A) Student
B) Job
C) Business
D) Other
Occupation
3%
22%
35%
40%
INTERPRTATION
The most prevalent occupation among respondents is having a job 40%, closely
followed by those in business 34%. Students represent 22% of the sample, while the
"Other" category accounts for just 3%.
How often do you consume energy drinks?
A) Rarely
B) Occasionally
C) Frequently
D) Very frequently
20
15
15
10
10 9
0
A- Rarely B- Occasionally C- Frequently D- Very frequently
INTERPRTATION
The majority of respondents 25 consume energy drinks very frequently, while
frequent consumption 15 is also notable. Occasional consumption stands at 10, and
rare consumption is the lowest at 9.
What is your primary reason for consuming energy drinks?
A) To increase energy levels
B) To improve focus
C) To stay awake
D) Other
D- Other 9
C- To stay awake 22
B- To improve focus 15
INTERPRTATION
Improving focus 22 emerges as the primary reason for consuming energy drinks,
followed by staying awake 15. Other reasons, such as unspecified personal
preferences, outweigh the desire to increase energy levels 9.
Which factors influence your decision to purchase a specific energy drink brand?
A) Price
B) Taste
C) Brand reputation
D) Ingredients
E) Packaging
F) Other
F- Other 8
E-Packaging 7
D-Ingredients 21
C-Brand reputation 27
B-Taste 28
A-Price 14
INTERPRTATION
Taste 28 and brand reputation 27 are the leading factors influencing respondents'
decisions when purchasing energy drinks. Ingredients 21 and price 14 follow closely,
with packaging 7 having less influence.
How often do you consume energy drinks as a replacement for other beverages
(coffee, soda, etc.)?
A) Never
B) Rarely
C) Occasionally
D) Frequently
E) Very frequently
20% 20%
12%
26%
22%
INTERPRTATION
A significant portion of respondents 26% frequently replace other beverages with
energy drinks, while occasional replacement stands at 22%. However, a substantial
number never 20% or rarely 12% replace other beverages with energy drinks.
Are you aware of the potential health risks associated with consuming energy drinks?
* Yes
* No
31%
69%
INTERPRTATION
A concerning finding is that the majority of respondents 69% are not aware of the
potential health risks associated with consuming energy drinks, contrasting with the
31% who are aware.
Do you read and consider the nutritional information and ingredient list before
purchasing an energy drink?
A) Always
B) Sometimes
C) Rarely
D) Never
23
21
8
7
INTERPRTATION
While a notable portion of respondents 23 always consider nutritional information
and ingredients, a concerning 15 rarely or never do so before purchasing energy
drinks.
How important is the brand name or logo in influencing your purchase decision for
energy drinks?
A) Very important
B) Somewhat important
C) Not very important
D) Not at all important
5%
17%
44%
34%
INTERPRTATION
A significant majority of respondents 44% find the brand name or logo either very
important or somewhat important in influencing their purchase decision for energy
drinks, suggesting branding plays a crucial role.
Do you prefer energy drinks with specific flavors?
* Yes
* No
29%
71%
INTERPRTATION
The majority of respondents 42 prefer energy drinks with specific flavors, indicating a
strong market for flavoured energy drinks.
How much are you willing to pay for a single serving of an energy drink?
A) Less than 20
B) 20-50
C) 50-80
D) 80-120
E) More than 120
19
14
10
9
7
Less than ₹20 ₹20 - ₹50 ₹50 - ₹80 ₹80 - ₹120 More than ₹120
INTERPRTATION
The majority of respondents 48% are willing to pay between ₹20-80 for a single
serving of an energy drink, with fewer willing to pay less than ₹20 7% or more than
₹120 (9%).
Do you believe energy drinks provide the advertised benefits (increased energy,
improved focus, etc.)?
*Yes
*No
36%
64%
INTERPRTATION
A notable portion of respondents 64% believe that energy drinks provide the
advertised benefits, such as increased energy and improved focus.
How often do you consume energy drinks before engaging in physical exercise or
sports activities?
A) Never
B) Rarely
C) Occasionally
D) Frequently
E) Very frequently
E-Very frequently 10
D-Frequently 10
C-Occasionally 17
B-Rarely 15
A-Never 10
INTERPRTATION
While some respondents 25% consume energy drinks occasionally or frequently
before engaging in physical exercise or sports activities, a larger portion 20% never
do so.
Do you believe energy drinks are suitable for all age groups, including children and
adolescents?
* Yes
* No
37%
63%
INTERPRTATION
A considerable majority of respondents 37% believe that energy drinks are not
suitable for all age groups, including children and adolescents, contrasting with the
63% who think they are suitable.
Test
Step 1
H1: There is significant association between age and the primary reason for
consuming energy drinks among young adults in Rajkot, indicating that age does not
influence the primary motivation for consumption.
H0: There is no significant association between age and the primary reason for
consuming energy drinks among young adults in Rajkot, indicating that age does not
influence the primary motivation for consumption
Step 2
Here, We have used chi-sqaure test to the data for hypothesis testing
Step 3
The appropriate significance level, α = 0.05
Step 4
Degree of freedom = [(c-1)*(r-1)]
= (4--1)*(4-1)
=9
Step 5
Calculated Value > Tale Value
59.0374 > 16.9190
Accepted
Step 6
The study revealed that energy drink consumption in Rajkot is prevalent among
young adults aged 18-30, with a slight predominance among males. This demographic
group tends to be more inclined towards energy drinks due to their active lifestyles
and desire for increased alertness and performance.
Consumption patterns varied among participants, with some consuming energy drinks
occasionally as needed, while others reported habitual or excessive consumption.
Factors influencing consumption patterns included individual preferences,
availability, peer influence, and promotional activities by energy drink companies.
The study revealed a lack of awareness and knowledge among consumers regarding
the ingredients and potential health risks associated with energy drinks. Many
participants were unaware of the caffeine content and other stimulants present in these
beverages, highlighting the need for public education and awareness campaigns.
Participants expressed mixed views on the regulation of energy drinks, with some
advocating for stricter regulations to protect consumers from potential harm, while
others emphasized personal responsibility and freedom of choice. There was also a
call for clearer labelling and warning signs on energy drink packaging to inform
consumers about potential health risks.
Overall, the findings suggest that while energy drinks are popular among young adults
in Rajkot for their perceived benefits, there is a need for greater awareness of the
potential health risks associated with their consumption. Public health initiatives,
education campaigns, and regulatory measures may be necessary to promote
responsible consumption and protect consumer health.
7. LIMITATIONS OF THE STUDY
Additionally, the study will not investigate the entire spectrum of energy
drinks available in the global market but will focus on select brands prevalent
in Rajkot.
Respondent are reluctant for his or her reaction and evaluations and
authenticity in their declaration can’t be proven too.
Data series of precise facts of that for them seek isn't feasible due to the fact
there may be an opening between what respondent say and what they sincerely
do.
8. CONCLUSION
This study has provided valuable insights into the perceptions and practices related to
the consumption of select energy drinks in Rajkot, Gujarat. Through a comprehensive
examination of prevalence rates, motivations, consumption patterns, awareness of
health risks, and socio-cultural influences, several key findings have emerged.
Furthermore, the study underscored the importance of raising awareness about the
potential health risks associated with energy drink consumption, particularly among
young adults and adolescents. By identifying socio-cultural factors shaping
perceptions and practices related to energy drink consumption, the study has laid the
groundwork for developing evidence-based strategies to promote safer consumption
practices and protect public health in the local context.
Overall, this study contributes to the existing body of knowledge on energy drink
consumption while providing actionable recommendations for policymakers,
healthcare professionals, and stakeholders to safeguard the health and well-being of
the population in Rajkot and beyond.
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10. ANNEXURE
Name:
Gender:
A) Male
B) Female
Age
A) 18-22
B) 23-27
C) 28-32
D) 33-37
Occupation
A) Student
B) Job
C) Business
D) Other
How often do you consume energy drinks?
A) Rarely
B) Occasionally
C) Frequently
D) Very frequently
What is your primary reason for consuming energy drinks?
A) To increase energy levels
B) To improve focus
C) To stay awake
D) Other
Which factors influence your decision to purchase a specific energy drink brand?
A) Price
B) Taste
C) Brand reputation
D) Ingredients
E) Packaging
F) Other
How often do you consume energy drinks as a replacement for other beverages
(coffee, soda, etc.)?
A) Never
B) Rarely
C) Occasionally
D) Frequently
E) Very frequently
Are you aware of the potential health risks associated with consuming energy drinks?
* Yes
* No
Do you read and consider the nutritional information and ingredient list before
purchasing an energy drink?
A) Always
B) Sometimes
C) Rarely
D) Never
How important is the brand name or logo in influencing your purchase decision for
energy drinks?
A) Very important
B) Somewhat important
C) Not very important
D) Not at all important
Do you prefer energy drinks with specific flavors?
* Yes
* No
How much are you willing to pay for a single serving of an energy drink?
A) Less than ₹20
B) ₹20-50
C) ₹50-80
D) ₹80-120
E) More than ₹120
Do you believe energy drinks provide the advertised benefits (increased energy,
improved focus, etc.)?
*Yes
*No
Are you influenced by celebrity endorsements or sponsorships when choosing an
energy drink brand?
* Yes
* No
How often do you consume energy drinks before engaging in physical exercise or
sports activities?
A) Never
B) Rarely
C) Occasionally
D) Frequently
E) Very frequently
Do you believe energy drinks are suitable for all age groups, including children and
adolescents?
* Yes
* No