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Project Report

(Submitted for the Degree of B.Com. Honours in Accounting &


Finance under the University of Calcutta)

“Packaging Industries”
WITH REFERENCE TO COCA-COLA & PEPSI

Submitted By

Name of the Candidate:

Registration No.:

Name of the College:

College Roll No.:

Supervised by

Name of the Supervisor:

Name of the College:

Year of Submission
TABLE OF CONTENTS

CHAPTER #1 (INTRODUCTION)..............................................1-8
 About Packaging
 Background
 Literature Review
 Objectives
 Methodology Adopted
 Limitations of the Study

CHAPTER #2 (CONCEPTUAL FRAMEWORK).......................9-11


 National Scenario
 International Scenario

CHAPTER #3 (ANALYSIS AND FINDINGS)...........................12-24


 Sample
 Data Type
 Data Source
 Period of Study
 Tools used
 Data Analysis & Interpretation

CHAPTER #4 (CONCLUSION & RECOMMENDATIONS)...25-27


 Conclusion
 Recommendations

CHAPTER #5 (REFERENCES)...................................................28

CHAPTER #6 (ANNEXURES)..................................................29-30
Page |1

CHAPTER 1

INTRODUCTION

About Packaging

Packaging can be defined as, “All the activities of designing


and producing the container or wrapper of a product”.
Packaging is basically a structure designed to contain a
commercial food product i.e., to make it easier and safer to
transport, protect the product against contamination or loss,
degradation or damage and to produce a convenient way to
dispense the product.
Packaging also pertains as a container or wrapper for
consumer products that serves as a number of purposes
including protection & description of the contents, theft
deterrence and product promotion. Innovative and Attractive
packaging may actually add value to the product if it meets
the consumer needs such as portion control, recyclability,
tamper-proofing, child-proofing, easy-open, easy-store, easy-
carry and non-breakability.

The labels on the packages are important components of the


overall marketing mix & can support advertising claims,
establish brand identity, enhance name recognition &
optimize shelf space allocations. When designing a packaging,
the cost to manufacture, ship & display the package must be
looked at. Packaging must be small enough to accommodate
available shelf space & large enough to deter theft. It must
also contain an adequate amount of product to keep the unit
price competitive. Packaging should be designed to highlight
product benefits & can be an integral part of the product
itself.
Page |2

Background

In ancient times, food was produced and consumed locally so


there was no need of packaging. But as the civilizations grew,
the need to contain, protect and transport food supplies
became critical. Primitive man used vessels & containers
made of natural materials in the form of tree leaves, bamboo,
lotus leaves, coconut shells, palm leaves & animal skin. Later
on, as minerals, ores & chemicals were discovered, metals &
pottery were developed leading to use of new materials
including fabrics, ceramics, metals, wood ware, jade ware etc.

The history of packaging is as old as the trading of


commodities. As we all know packaging earlier was done with
natural products. However, with the passage of time & the
invention of new technologies vast improvements were
witnessed in packaging also. Soft drink being a perishable
product requires proper packaging so as to ensure that it
doesn’t get vulnerable to any insect or species or rather
doesn’t get contaminated. Presently, packing of soft drinks is
done with a view to ensure preservation of quality, ease of
handling & the most important thing i.e., to create to create
customer loyalty by satisfying the fellow customers & for the
expansion of the business by innovating its packaging from
time to time.

Packaging today, is regarded as an essential part of successful


business practice. Package design became a marketing
science, & as a new corporate cost-consciousness developed
in response to increased competition, companies began to
alter packaging as a way to cut production, storage &
distribution expenses.
Page |3

Literature Review

Rita Kuvykaite (2009) has descriptive research. According to


Rita package attracts consumer’s attention to a particular
brand, enhances its image, & influences consumer’s
perception about the product. Also package imparts unique
value to the products.

(Underwood, Klein & Burke, 2001; Silayoi & Speece,2004)


works as a tool of differentiation, i.e., helps the consumers to
choose the product from wide range of similar products,
stimulates customers buying behaviour(Wells,Farley &
Armstrong,2007). Thus package performs an important in
marketing communications & could be treated as one of the
most important factors influencing consumer’s purchase of
package, its elements & their impact on consumer’s buying
behaviour became a relevant issue. He basing on theoretical
analysis of package elements & their impact on consumer’s
purchase decision empirically reveals the elements having the
ultimate effect on consumer choice. Research methods that
Rita used is systematic & comparative analysis of scientific
literature; empirical research.

There are six variables that must be taken into consideration


by producer & designers when creating efficient package:
form, size, colour, graphics, material & flavour. Similarly,
Kotler (2003) distinguishes six elements that according to him
must be evaluated when employing packaging decisions: size,
form, material, colour, text & brand. The research result of
Rita shows the impact of package elements on consumer’s
purchase decision can be stronger. The impact of package &
its elements on consumer’s purchase decision can be revealed
by analysing an importance of its separate elements for
consumer’s choice.
Page |4

Bed Nath Sharma Dec. 2008 studied New Consumer Products


Branding, Packaging & Labelling in Nepal. This paper focuses
on existing practice of branding, packaging & labelling of new
products in consumer product manufacturing units. The study
method was descriptive presentation of facts collected
through questionnaire survey concerned with different
sections of consumer new products & the study further
investigates the new consumer product packaging & labelling.

Alice Louw (2006) has studied The Power of Packaging the


people belonged to Age 20-30years old University graduates
were taken for research. Twenty respondents were asked to
rank 5 water bottles in terms of their overall appeal.
Following this they were given a questionnaire & asked to
rate each of the bottles on 20 statements related to their
packaging. For the remaining twenty respondents, the order
of process was switched: they rated the bottles first & then
rank them. The statements ranged from functional attributes
(e.g. easy to drink from, right size) to more emotive, non-
functional attributes (e.g. I like the colours, high quality). For
both the groups there was a clear winner & a clear loser in
terms of the ranking. However, the top brand chosen was
consistent in both groups, the worst brand differed. The group
that ranked the bottles first showed more variance in terms of
their responses (Variance 1.33) than the second group who
rated the attributes first (Variance 0.89). Thus, packaging
plays an important role in the marketing context. His research
proved that right packaging can help a brand carve a unique
position in the marketplace & in the minds of consumers.
Page |5

Renault LUNARDO 2007 has a great research on the influence


of label on wine consumption, its effects on young consumers’
perception of authenticity on purchase behaviour. They used
a Repertory Grid (RG) approach as a methodological
framework in order to know which pattern of features is
better at inducing purchase. All the relationships between
authenticities provided by the label of bottles & consumer
behaviour attributes (performance risk, perceived price &
purchase intentions) have all been tested by using linear
regressions. This study was intended to provide a more
complete understanding of the influence of the authenticity
perceive from the label of bottled wines.

L Renaud 2007 worked on the influence of Eco-Labelling on


Consumer Behaviour. The main objective of this study was to
assess the relative importance of the labelling in packaging
compared to other product attributes (like brand, price etc.)
for consumers’ buying decisions. The methodological
approach that they chose was discrete choice analysis, which
is particularly powerful for this kind of analysis. Further this
study attempts to analyse if the importance of packaging &
labelling differs between product groups. They surveyed a
total of 302 customers; Two-thirds of the interviews were
conducted in the German speaking. The variables chose
within the study are- present mood, time, buying purpose
with regard to sustainability marketing, time.
Page |6

Objectives

The objective of the study is to analyse whether Attractive


Packaging for Cold Drinks is a necessity or an eye wash,
followed by these sub-objectives:

 To understand the influence of Packaging on Brand preference


of customers
 To make out the influence of Packaging in communicating the
quality image of the Brand
 To determine the role of Packaging as the promotional tool of
the product
 To determine the effect of Packaging Designs on the decision
of the consumer
 To evaluate the sort of designs preferred by the consumers.
Page |7

Methodology Adopted

 The data collected for the purpose of the study are Primary
and Secondary
 The techniques used in presenting the Packaging Industries of
the two well known Companies Pepsi & Coca-Cola are Bar
Graphs, Pie Charts & Horizontal Bar Graphs
 Well prepared Structured Questionnaires were used in this
study, which includes both closed-ended & open-ended
questions to get the information based on the objective of the
research process
 The Sample Size is 45 out of which 5 Questionnaires had been
rejected due to the mistakes made by the respondents
 The data is collected through market survey in Kolkata
 People of different age group from different economic
background were asked to fill the Questionnaire containing 11
questions.
Page |8

Limitations of the Study

It was my 1st Research Project so due to curiosity I had put my


whole heart on this Project. Still there were certain limitations
while doing this Project work & those limitations were as
follows:

 Due to financial constraint I could not gather reports


regarding Cold Drink Packaging Industries which operate
beyond the boundaries of the country
 The sample size of 40 respondents is too small to find out
consumers perception as both Pepsi & Coca-Cola were
covered
 I wasn’t able to collect revenue data which I truly wanted to
include in my Project
 Due to limitation of Time I could not batch up the data’s of
Companies apart from the stated two Companies i.e., Pepsi &
Coca-Cola
 The Questionnaire were in English so many people were
avoiding to fill them up
 There might have been tendencies to amplify or filter their
responses under the testing
 There were some cases in which the respondents were not
giving proper reply as he/she might have thought that this is
wastage of time or might create problems & as a result,
he/she has given some fake answers & just filled the
Questionnaire casually
 There is a possibility that some potential source might have
remained untapped
Page |9

CHAPTER 2

Conceptual Framework

Buyers are overwhelmed with so many choices at their end. This


may create confusion & frustration; this surplus availability may
lead many buyers to subdue themselves to similar products.
There’s a lot to talk about influencing buyer’s decision at a
shopping environment. Among them, packaging plays a vital role &
has a major inspirational effect in impulse purchase decision.
Attractive packaging design can lure a potential buyer to the first
moment of truth.

Packaging is one such tool where the marketers can convey their
message straight to its potential customers. For many brands the
packaging leads the way to a successful integral branding
communication effort & establishing the brand image. Many
academicians have agreed to the fact that for many products, sole
form of advertising is via packaging.

National Scenario

 The Indian Packaging Industry itself is growing at 14-15%


annually. The growth is expected to double in the next two or
three years
 According to The Indian Packaging Institute, Indian Packaging
Industry is USD 14 Billion & growing at more than 15% p.a.
These figures indicate towards a change in the industrial &
consumer set-up

The growth of the packaging industry in India is mainly driven by


the food & the pharmaceutical packaging sectors. The large &
growing Indian middle-class, along with the growth in organised
retailing in the country is fuelling growth in the packaging industry.
P a g e | 10

Another factor which has provided substantial stimulus to the


packaging industry is the rapid growth of exports, which requires
superior packaging standards for the international market. With
this the need for adopting better packaging methods, materials &
machines to ensure quality has become very important for Indian
business.

The Indian Packaging Industry is dominated by plastic flexible


packaging. The traditional rigid packaging users have also been
seen to shift to flexible packaging in recent times. According to
industry sources, the main reason for this is that flexible packages
are found to be aesthetically attractive, cost-effective & sturdy. The
food processing sector is the largest is the largest user of flexible
packaging, accounting for more than 50% of the total demand. The
flexible packaging segment is estimated to be growing at over 35%
annually.

The Packaging Industry in India is a mix of both organised medium


to large players as well as very small players with a localised
presence. The industry is comprised of a large number of
manufacturers of basic materials, converted packages, machines &
ancillary materials. Domestic demand for packaging has been
anticipated to grow rapidly within the next 5 years. Recognising this
trend, the industry is gearing itself to adopt scientific & functional
packaging.

Three specific segments can be identified for opportunities in


packaging equipment in the Indian market. The unorganised sector
represents the larger opportunity, given the increasing quality
consciousness of end customers. Large companies, primarily the
Multinational Corporations which comprise another segment
would be guided for the choice of such equipment by the global
policies & standardisation of their parent company. The organised
sector is conscious about quality & the ability to produce various
packaging products.
P a g e | 11

International Scenario

The global consumer packaging market is valued at USD 400 Billion


& an estimated USD 500 Billion if industrial end-markets are
included.

The Brazil, Russia, India, China & South Africa (BRICS) market
comprises approximately 30% of global demand, increasing as their
economies further develop. Packaging sales in the emerging
markets are expected to continue to show strong growth as both
increased consumption & demand for consumer good drives the
need for more sophisticated packaging.

According to a market analysis the materials used in packaging


industry comprises of 36% Paper, 17% Metal, 34% Plastics, 10%
Glass & 3% other materials.

The macroeconomic environment has been challenging for the


packaging industry in recent years, given pressures on consumer
spending & their exposure to fast moving consumer goods (FMCG)
producers. The combination of economic uncertainty & raw
material & energy price inflation has also had a negative impact on
packaging producers.

The growth of global packaging industry is being driven by a


number of trends, depending on various geographical regions.
Growing urbanisation, investment in housing & construction, the
development of retail chains & the burgeoning healthcare &
cosmetics are driving packaging demand in China, India, Brazil,
Russia & other emerging economies. An increase in the living
standards & personal disposable income in the developing regions
fuels consumption across a broad range of products, with
subsequent growth in demand for the packaging of these goods.
P a g e | 12

CHAPTER 3

Data Analysis & Findings: (Coca-Cola & Pepsi)

Methodology Undertaken for the Analysis are as follows:-

SAMPLE- Packaging of soft drinks has always affected the purchase


preference of the consumers. Therefore, a primary survey was done
based on Simple Random Sampling. Sample sizes of 40 consumers
who are fond of buying different types of soft drinks were
personally interviewed.

DATA TYPE- The data type which is used for the Research Analysis
consists of “Primary Data” & “Secondary Data”. The analysis has
been done on the basis of Questionnaire prepared consisting of 11
Questions being served to the respondents.

DATA SOURCE- The survey has been done by approaching to the


consumers of soft drinks who generally visit the supermarkets,
restaurants & various other stores where they find these soft
drinks. The consumers have been interviewed regarding whether
the packaging of soft drinks has affected their purchasing
preferences.

PERIOD OF STUDY- The time taken to complete the survey is 2


months. Within the said time period all the data had been collected
& simultaneously analysis of the data had been made with the help
of Simple Random Sampling.

TOOLS USED- The tools used for analysing the data collected is a
simple statistical tool i.e., “Pie Chart & Bar Graph”. The analysis
helped in finding out whether attractive packaging is necessary for
soft drinks or not.
P a g e | 13

Data Analysis & Interpretation

This analysis has been done on the basis of the Questionnaire filled
by the consumers. On the basis of the responses from the
respondents the behaviour & perception can be measured &
understood.

1. Age Distribution

Age Group (Years) No. Of Respondents Percentage (%)


Up to 14 6 15
15-19 10 25
20-29 12 30
30-39 8 20
Above 40 Years 4 10

Age Distribution

10% 15%
20% Upto 14

25% 15-19
20-29

30% 30-39
Above 40 Years

From the above Pie Chart it can be understood that most of the
respondents are of the age group 20-29 Years (30%), followed by
age group of 15-19 Years (25%).
P a g e | 14

2. Profile of the Respondents

Profile Number Percentage (%)


Student 14 35
Servicemen 10 25
Housewife 6 15
Professional 5 12
Businessman 3 8
Others 2 5

Profile of the Respondents

8% 5%
35% Student
12%
Servicemen
Housewife
15%
Professional

25% Businessman
Others

From the above Pie Chart it can be understood that most of the
respondents are Students (35%), followed by Servicemen (25%),
Housewife (15%), & Professionals (12%) respectively.
P a g e | 15

3. Preferred Brand

Brand No. Of Respondents Percentage (%)

Pepsi 16 40

Coca-Cola 22 55

Others 2 5

Preferred Brand
5%

40% Pepsi
Coca-Cola
Others
55%

From the above Pie Chart it can be understood that most of the
respondents prefer Coca-Cola (55%) than Pepsi (40%).
P a g e | 16

4. Reason Of Preference

Preferences No. Of Respondents Percentage (%)


Taste 12 30
Advertisements 8 20
Easy Availability 2 5
Packaging 16 40
Others 2 5

Reason of Preferences

5%
30% Taste
Advertisements
40%
Easy Availability
Packaging
20% Others
5%

From the above Pie Chart it can be understood that most of the
respondents prefer Packaging (40%), followed by Taste (30%) &
Advertisements (20%) respectively.
P a g e | 17

5. Influence of packaging of soft drinks in buying decision

Response No. Of Respondents Percentage (%)

Yes 28 70

No 12 30

Influence of packaging of soft


drinks in buying decision

30%

Yes
No

70%

From the above Pie Chart we can understand that most of the
respondents (70%) think that packaging does influence the buying
decision of the consumers, whereas (30%) think that packaging
does not have any influence on the buying decision.
P a g e | 18

6. Brand Loyalty

If the desired variety of soft drink is not available at a particular


shop, then how does a consumer respond?

No. Of
Response Respondents Percentage (%)
Take another variety 14 35
Visit the next shop 18 45
Suggest to have the same variety 6 15
Postpone decision 2 5

Brand Loyalty

5% Take another variety


15% 35%
Visit the next shop

Suggest to have the


45% same variety
Postpone decision

From the above Pie Chart, we can understand that most of the
respondents would prefer to Visit the next shop (45%), followed by
those who would Take another variety (35%) of soft drinks.
P a g e | 19

7. Influence of colour on packaging of soft drinks while


purchasing

Response No. Of Respondents Percentage (%)

Yes 28 70

No 12 30

Influence of Colour on Packaging

30%

Yes
No

70%

From the above Pie Chart, we can understand that most of the
respondents (70%) think that colour of packaging influences the
buying decision of the consumers, whereas (30%) think that colour
of packaging does not have any influence on the buying decision.
P a g e | 20

8. Consumption of Soft Drinks

No. Of
Response Respondents Percentage (%)
Once a week 8 20
Twice a week 12 30
More than twice a week 2 5
Once in two week 4 10
Whenever required 14 35

Consumption of Soft Drinks

Whenever required

Once in two week

More than twice a week Percentage (%)

Twice a week

Once a week

0 10 20 30 40

From the above Bar Graph, we can understand that most of the
respondents consume soft drinks whenever required (35%),
followed by those who consume it twice a week (30%) & once a
week (20%).
P a g e | 21

9. Importance of innovation in packaging of soft drinks

Response No. Of Respondents Percentage (%)

Yes 32 80

No 8 20

Innovation of Packaging

20%

Yes
No

80%

From the above Pie Chart, it can be understood that most of the
respondents (80%) think that innovation in packaging is important,
followed by those respondents (20%) who think that innovation in
packaging is not so important.
P a g e | 22

10. Preferences of printed information on the package of soft


drinks

Response No. Of Respondents Percentage (%)

Yes 18 45

No 22 55

Preferences of printed information


on the bottles

45% Yes
No
55%

From the above Pie Chart, it can be understood that most of the
respondents (55%) does not give much importance to the printed
information on the package of soft drinks, whereas (45%) think that
printed information on the package is important & they consider it
as a necessity.
P a g e | 23

11. Eco-Friendly packaging of soft drinks is to be made a legal


requirement in order to resolve environmental issues

Response No. Of Respondents Percentage (%)

Yes 36 90

No 4 10

Eco-Friendly Packaging

10%

Yes
No

90%

From the above Pie Chart, it can be understood that most of the
respondents (90%) are aware that soft drink bottles are not eco-
friendly & biodegradable & thus cause environmental issues &
hence, they think that eco-friendly packaging should be made a
legal requirement in order to solve these problems.
P a g e | 24

12. Preferred quantity of soft drinks

Preferred Quantity No. Of Respondents Percentage (%)

200ml 16 40

300ml 10 25

500ml 8 20

1 Litre 6 15

Quantity of Soft Drinks

1 Litre

500ml

Percentage (%)
300ml

200ml

0 10 20 30 40

From the above Bar Graph, it can be understood that most of the
respondents prefer 200ml bottles of soft drink (40%), followed by
300ml ones (25%) & 500ml bottles of soft drink.
P a g e | 25

CHAPTER 4
CONCLUSIONS & RECOMMENDATIONS
Conclusion

From the survey the following points have been noted:-

 Packaging could be treated as one of the most valuable tool in


today’s marketing communications, necessitating more
detailed analysis of its elements & an impact of those
elements on consumers’ buying behaviour.
 Appropriate & vivid picture or packaging colour, which
delivers the consumers’ a happy feeling, or an easy to
handle/open/dispose package shape. All these elements
contribute each important effort to catch consumers’
attention & interest.
 In my research most of the respondents gave weightage to
packaging because it preserves the soft drinks from being
contaminated. Most of the consumers gets influenced by
packaging & then go for a particular brand of soft drink. This
shows that packaging influences the brand preferences of
customers.
 Regarding the role of packaging as a promotional tool of the
product. The finding is that marketing of soft drink is heavily
dependent upon the packaging & it shows the same in my
research as well where most of the respondents say that
packaging is important for marketing & promotion of soft
drinks.
 As per response, 90% of the respondents feel that eco-friendly
packaging should be made legal in order to resolve
environmental issues which gives a picture to us that people
are conscious about environment.
P a g e | 26

 70% of the respondents believe that packaging influences


their buying decision
 Regarding the innovation & colour of packaging, most of the
respondents are in favour of innovation in soft drink
packaging & that the colour & innovative packaging influences
their selection of soft drinks.
 As a matter of fact, people are becoming more & more
demanding i.e., packaging has been gradually showing its
important role in a way to serve the consumers by providing
information & delivering functions. With its different
functionality to ease & to communicate with consumers,
there is no doubt about increasing role of packaging as a
strategic tool to attract consumers’ & their perception on
product quality.
P a g e | 27

Recommendations

 It is highly recommended to the marketing & business units


that they should pay proper attention for good packaging. If
they accept or introduce poor packaging then it could be one
of the causes of product failure in the market. It is necessary
to set the packaging standard & to implement strategy
accordingly for better protection & promotion of product.
 It is believed by many researchers that culture differences do
have an impact on companies’ initiatives to design the
product package. Thus, it is recommended that it is important
for international companies to take a consideration of culture
differences when they design the product package in different
parts of the world.
 It is recommended that the marketers of the industry should
not consider packaging as a sole factor for success of any
product; therefore they should also take up other important
factors of the marketing while they are launching new
products or revitalize old products.
 It is recommended to other researchers that when they take
up packaging they should also consider other factors &
dimensions of marketing as well.
P a g e | 28

CHAPTER 5

REFERENCES

Internet:-

www.pepsico.com

www.pepsico.india.co.in

www.coca-cola.com

www.coca-colaindia.com

www.scribd.com

www.wikipedia.org

www.slideshare.net

Journals:-

Global Journal of Management and Business Research


(Volume 12, Issue 10, Version 1.0)

International Journal of Scientific Research (Volume 2)

European Journal of Scientific Research


P a g e | 29

CHAPTER 6
ANNEXURE
QUESTIONNAIRE FOR THE SURVEY OF CONSUMERS

NAME:

AGE (In Years):

GENDER: MALE FEMALE

OCCUPATION: PROFESSIONAL BUSINESSMAN

HOUSEWIFE STUDENT

SERVICE

1. Which soft drink brand do you prefer?

(a) Pepsi (b) Coca-Cola (c) Others

2. Why do you prefer the brand?

(a) Packaging (b) Taste (c) Advertisement

(d) Easy Availability (e) Others

3. Do you take any soft drinks?

(a) Yes (b) No

4. Do you think that packaging of soft drinks influences the buying


decision?

(a) Yes (b) No

5. If your desired brand of soft drink is not available at a particular


shop then, what would you do?

(a) Take another brand (b) Visit the next shop


P a g e | 30

(c) Suggest of having that brand (d) Postpone decision

6. Does the colour of packaging of soft drinks influences your


purchasing decision?

(a) Yes (b) No

7. What is your consumption pattern with respect to soft drinks?

(a) Once a week (b) Twice a week

(c) More than twice a week (d) Once in two week

(e) Whenever required

8. Is innovation in packaging of soft drinks important?

(a) Yes (b) No

9. Do you read the printed information on the package of soft


drinks?

(a) Yes (b) No

10. Which quantity of soft drinks you often purchase?

(a) 200ml (b) 300ml (c) 500ml (d) 1 Litre

11. Do you think that the soft drink bottles & cans are eco-friendly
in nature?

(a) Yes (b) No