INTRODUCTION

Satisfaction is an important element in the evaluation stage.

Satisfaction refers to the buyer's state of being adequately rewarded in a
buying situation for the sacrifice he has made. Once the customers purchase
and use the product they may then either be satisfy or dissatisfied. Today's
market is buyer oriented where the customer is considered the king. He has
full power to choose the desired product according to his needs and wants.
His preference is most important. Because of the huge competition, every
manufacturer wants to survive in the market and earn profit. This is possible
only when the products manufactured are according to the tastes and
preferences of the customers and meet their expectations. Different
customers have different perceptions because no two customers have similar
wants and needs. Product with good features may attract a good number of
customers because good feature suits the requirement of the customers. They
make decisions based on their past experience and future contingencies.
Hence the company needs to analyze the customer perception, which helps
them in determining the various factors influencing consumer’s choice in
buying.

The Project “CUSTOMER SATISFACTION TOWARDS PEPSI”

deals with consumers preferences for Cola Drinks, to study the Market
Potential of PEPSI. The company PEPSI has interests in various sectors and
they provide consistent quality products to meet costumer’s requirement
worldwide. This report clearly mentions objective of the study and the
research methodology utilized, both primary data and secondary data. The
data collection method used is structured nondisguised questionnaire in

1
which the types of questions used are open ended, multiple choice and close
ended. The report contains a detailed view of the PREFERENCES of
consumers towards PEPSI.

2
COMPANY OVERVIEW
Caleb Bradham a New Bern N.C druggist who formulated Pepsi
Cola founded Pepsi Cola Beverage business at turn of the century. Pepsi
Cola Company now produces and markets nearly 200 refreshment beverages
to retail, restaurants and food service customers in more then 190 countries
and territories around the world and generates revenue of over 18 billion
dollars PepsiCo World Headquarters is located in Purchase, New York.
Pepsi Co. is the world leader in the food chain business. It consists of many
companies amongst which the prominent ones are Pepsi Cola, Frito-lay,
Pepsi food international, Pizza-hut, KFC and Taco bell. The group is
presently into three most profitable businesses namely, Beverages Snacks
foods and Restaurants. The beverages segment primarily market it Pepsi
diet, Pepsi Mountain Dew and other brands worldwide and 7UP outside the
U.S.market. They are positioned in close competition with Coca Cola inc. of
USA. The Snacks food divisions manufacture and distribute and markets
others snacks worldwide. The restaurant segment primarily consists of the
operations of the worldwide Pizza-Hut, Taco bell and KFC chains PFS,
PepsiCo’s restaurant distribution operation, supplies to Company owned and
Franchise restaurants in the U.S.
“Pepsi Co is going blue”. This was the new color adopted by the
company to strengthen its brand globally. Also the company is changed
colors from Generation X to GENERATION NEXT.

3
 Although Pepsi holdings over the years have become diverse in such
fields as the Snacks industry and Restaurants industry, this portfolio will
discuss its core business and its highly successful business of Beverages.
The soft drink industry customer base is probably the widest and deepest
base in a world that is flooded with some many categories. According to
Beverage Digest the customer base for soft drinks is a whopping 95% of
regular users in the United States. This represents a large field of potential
customers for Pepsi Cola.Pepsi prefers to segment itself as the beverage
choice of the “New Generation”, “Generation Next”, or just as the
“Pepsi Generation”. These terms adopted in Pepsi’s advertising campaigns
are referring to the markets that marketers refer to as Generation X. The
Generation X consumer is profiled to be between the ages of 18 to 29.
They have high expectations in life and are very mobile and active.
They adopt a lifestyle of living for today and not worrying about long-term
goals. Those Pepsi’s main emphasis on this segment they also have a focus
on the 12 to 18 year old market. Pepsi believes if they can get this market to
adopt their product then they could establish a loyal customer for life. Pepsi
Cola throughout its 100 years of existence has developed much strength.
One of the strengths that has developed Pepsi into such a large corporation is
a strong franchise system. The strong franchise system was the backbone of
success along with a great entrepreneur spirit. Pepsi’s franchise system and
distributors is credited to bring Pepsi from a 7,968 gallons of soda sold in
1903 to nearly 5 billion gallons in the year of 1997.
Pepsi also has the luxury to spend 225 million dollars in advertising a
year. This enormous ad budget allows Pepsi to reinforce their products with
reminder advertising and promotions. This large budget also allows Pepsi to
introduce new products and very quickly make the consumer become aware

4
of their new products. Pepsi also has had the good fortune of making very
wise investments. Some of the best investments have been in their acquiring
several large fast food restaurants. They have also made wise investments in
snack food companies like Frito Lay, which at present time is the largest
snack company in the world. Probably high on the list of strengths is Pepsi’s
beverage line up. Pepsi has four soft drinks in the top ten beverages in the
world. These brands are Pepsi, Mountain Dew, Diet Pepsi, and Caffeine
Free Diet Pepsi. Some other strong brands are All Sport, Slice, Tropicana,
Starbucks, Aquafina and a license agreement with Ocean Spray Juices.

5
OBJECTIVE OF THE STUDY

 To study the consumers preferences for PEPSI.

 To know the percentage of males and females that are aware about

PEPSI
 To know whether the people like PEPSI’S advertisement.

 To know the reason to buy PEPSI drinks.

 To know the level of awareness about PEPSI

 To study the consumer attitude towards PEPSI.

 To know influencing factors to buy PEPSI

 To know the satisfaction level of consumers.

 To gather innovative ideas to improve the product quality.

6
SCOPE OF THE STUDY
The scope of this study was to know the consumers attitude about the
various factors such as company image, quality etc and also to know their
brand awareness. Further it also helps to know the effective media to
advertise the product. The study can also be used to know customer
satisfaction level about price, discount basis; quality etc thus the main scope
of the study was to identify the Consumer satisfaction and consumer
expectations about the company and its products.

LIMITATIONS OF THE STUDY

Though the research has been properly planned and well executed,
there are certain limitations, which are inherent in nature and are out of the
researcher’s control. The effectiveness of the project is felt only when the
results are read along with the limitations and constraints faced during the
course of the study. The following are the limitations.
 The responses from the respondents could be casual in nature. This
may be due to lack of interest or time on their part.
 The correctness of information provided by the respondents in the
personal data could not be established.
 Some of the information provided by the respondents might not be
correct.
 Getting timely responses from the respondents was a difficult task.

7
RESEARCH METHODOLOGY OF STUDY
SAMPLE SIZE:
The data has been collected from 60 people.
TARGET SAMPLE
Target sample has been picked in particular reference to the
consumer’s demographic variables.
SAMPLING METHOD:
The sampling method is the procedure or way in which the sampling
has been done. As no project or research can be done taking in to
consideration the whole of the population or universe, the concept of
sampling is used, as per the concept of sampling. Only some sample is taken
from the universe in order to find out the result.
Sampling technique used: convenience sampling.

SOURCES OF DATA:
 PRIMARY DATA:
The data for study has been collected by well structured, yet easy to
understand questionnaire forms specially designed to cover aspects
regarding the background of the reader, his/her opinion on
PEPSI and finally about PEPSICO Company, visited wide section of people
for the survey and interviewed them to collect all the necessary information
which was filed and analyzed at a later time of the study.
 SECONDARY DATA:
Data collected from journals, internal records of the company,
published data and Internet websites.

8
FORMULATION OF QUESTIONNAIRE:
Structured questionnaire were formulated for the survey, with the help
of which data’s and other information’s were collected from consumers. A
sample copy of questionnaire has been given in the annexure of the reports
towards the end.
AREA AND PERIOD OF STUDY:
The project was carried out in Chennai City covering Government
sector, Private sector, students, professionals and businessmen as part of the
Survey and the study. The data collected has been tabulated and analyzed
with the help of simple statistical techniques and conclusion has been drawn.
Sufficient explanations are given wherever necessary for easy
understanding.

9
REVIEW OF LITERATURE
Consumer
A consumer is an individual who purchase or has the capacity to purchase
goods and services offered for sale by marketing institutions in order to
satisfy personal or household needs, wants or desires.
According to a statement made by Mahatma Gandhi, ‘consumer refers to the
following,
“A consumer is the most important visitor on our premises. He is not
dependent on us. We are dependent on him. He is not an outsider to our
business. He is part of it. We are not doing him a favour by serving him. He
is doing us a favour by giving us an opportunity to do so”.
So consumer is like the blood of our business and also a satisfied customer is
a word of mouth advertisement of a product / services.
Attitude
A mental position consisting of a feeling, emotion, or opinion evolved in
response to an external situation. An attitude can be momentary or can
develop into a habitual position that has a long-term influence on an
individual's behavior. Attempts can be made to modify attitudes that
have a negative effect in the workplace, for example, through education and
training. The employee, the position of the body or way of carrying oneself.
Attitudes are evaluative statement favorable or unfavorable related to
person, object or event. They reflect that how one feel about something. For
example if someone says that I like my job. This statement expresses his
attitude towards his job. Each and every person hasdifferent attitude at
different conditions.
There are three components of attitude.

10
1: Cognitive component:
It refers that's part of attitude which is related in general know how of a
person, for example, he says smoking is injurious to health. Such type of
idea of a person is called cognitive component of attitude.
2: Effective component:
This part of attitude is related to the statement which affects another person.
For example, in an organization a personal report is given to the general
manager. In report he point out that the sale staff is not performing their due
responsibilities. The general manager forwards a written
notice to the marketing manager to negotiate with the sale staff.
3: Behavioural Component:
The behavioural component refers to that part of attitude which reflects the
intension of a person in short run or in long run.
For example, before the production and launching process the product.
Report is prepared by the production department which consists of their
intention in near future and long run and this report is handed over to top
management for the decision.
If you have grown up in a loving and supporting family, your attitude to life
in general will be positive and you will meet all people with respect, the
support of your family also will make you overcome all difficulties of life
with ease. Positive thinking (attitude) is a strong motivator. If the opposite
happened, may turn out to be a mean and jealous person, holding most
people in low regard, not respecting laws of society or government, your
negative attitude will draw negative happenings to you. A very sad state,
indeed if your family failed, you can still turn to religion to discover why
nobody likes you – because of your attitude. All religions offer some
answer, and the rest you can figure out yourself! Leading a happy life has to

11
do with attitude: where do I really stand – and where has my family put me
to stand? Where and what is the place I should take and how much space is
due to me – depending on my merits? Attitude is a reflection of your mind
as the way it attends to a problem. This is a relative term, because it changes
as per situation. Whether it is positive or negative depends upon its
suitability to the attitude of the receiver, and the ultimate result of the
decisions taken. All relative! It is influenced by your formative strengths &
weaknesses, grooming back-ground, maturity, and thorough knowledge of
the event.
CONSUMER SATISFACTION
Every human being is a consumer of different produces. If there is no
consumer, there is no business. Therefore, consumer satisfaction is very
important to every business person.According to Philip Kotler consumer
satisfaction is defined on,
“personal feeling of pleasure resulting from comparing a product’s pursued
performance in relation to his /her expectations”.
Consumer attitude measurements are taken on either potential buries or
existing client’s buries in order to identify their characteristics. Why should
the competent market engineer conduct consumer research? Consumer
surveys can provide the researcher with a wealth of information, valuable of
the marketing function. Detailed information regarding the customer in a
market will provide the basic platform for all marketing decisions.
Marketing decision maker needs descriptive information about the
total potential unit and dollar sales in each segment. Perhaps the most
important one is that a seller needs to be aware of the relevant objective and
need of consumer and how their objectives might best be served by the
products.

12
Importance of consumer satisfaction
The needs to satisfy customer for success in any commercial enterprise is
very obvious. The income of all commercial enterprise is derived from the
payments received for the products and services supplied to its customers. If
there is no customer there is no income and there is no business. Then the
core activity of any company is to attract and retain customers. It is
therefore no surprise that Peter Drucker the renowned management Guru,
has said “to satisfy the customers is the mission and purpose of every
business”. Satisfaction of customer is essential for retention of customer’s
and for continuous sales of the products and services of the company to
customers. This establishes the needs for and the importance of customer
satisfaction. The satisfaction of consumers is different from one to
another. Became, each consumer has the different behaviour in their life. So,
the marketer satisfies the consumer, he must very well know the behaviour
of consumer.

13
Ten Basic Rules For Customer Satisfaction

1. Involve top management.

2. Know the customers.
3. Let the customers define what attributes are important.
4. Know the customers' requirements, expectations, and wants.
5. Know the relative importance of customer decision criteria.
6. Gather and trust data
7. Benchmark the data against competitors, and identify competitive
strengths and weaknesses.
8. Develop cross-functional action plans that enhance strengths and correct
weaknesses.
9. Measure performance continually and spread the data throughout the
organization.
10. Be committed to getting better and better and better.

14
DATA ANALAYSIS AND INTERPRETATION

Table – 1

AGE OF THE RESPONDENTS:

Options No. of Respondents Percentage (%)

Less than & equal to 20 31 52
21-30 14 23
31-40 14 23
41-50 1 2
51 and above - -
TOTAL 60 100.00

INFERENCE

It is clear from the above table that 52% of the respondents

belong to the age group of less than or equal to 20 , percentage of the
respondents between the age group of 21-30 and 31-40 are 23 % each and
2% of the respondents belong to the age group of 41-50.

15
Table – 2

GENDER :

Options No. of Respondents Percentage (%)

Male 49 82
Female 11 18
Total 60 100.00

INFERENCE

It is clear from the above table that 82% of the respondents are male and
18% of the respondents are female.

16
Table – 3

OCCUPATION:

Options No. of Respondents Percentage (%)

students 47 78
service 4 7
business 3 5
Engineer 5 8
others 1 2
TOTAL 60 100.00

INFERENCE

It is clear from the above table that 78% of the respondents are
students.service,buiness,engineer and others form the remaining 22%.

17
Table – 4

MARTIAL STATUS :

No. of Respondents Percentage (%)

Options
married 8 13
single 52 87
Total 60 100.00

INFERENCE

It is clear from the above table that 87% of the respondents are single and
13% of the respondents are married.

18
Table – 5

INCOME :

Options No. of Respondents Percentage (%)

Up to 5000 19 31
5000-10000 23 38
10000-20000 10 17
20000-50000 4 7
50000 and above 4 7
TOTAL 60 100.00

INFERENCE

It is clear from the above table that 38% of the respondents have an
income between 5000-1000.31% of the respondents have an income up to
5000.

19
Table – 6
DO YOU DRINK PEPSI:

No. of Respondents Percentage (%)

Options
Yes 55 92
No 5 8
Total 60 100.00

INFERENCE

It is clear from the above table that 92% of the respondents like PEPSI
and 8% of the respondents don’t like PEPSI.

20
Table – 7
HOW DO YOU COME TO KNOW ABOUT PEPSI:

Options No. of Respondents Percentage (%)

Parents 10 17
Friends 13 22
Advertisement 35 58
others 2 3
TOTAL 60 100.00

INFERENCE

It is clear from the above table that 58% of the respondents came to know
about the product from advertisement, 22% from friends ,17% from parents
and 3% from others.

21
Table – 8
DO YOU LIKE PEPSI ADVERTISEMENT:

Options No. of Respondents Percentage (%)

Yes 50 83
No 10 17
Total 60 100.00

INFERENCE

It is clear from the above table that 83% of the respondents like PEPSI
advertisement and 17% of the respondents don’t like PEPSI advertisement.

22
Table – 9
DO YOOU LIKE ITS PACKAGING:

Options No. of Respondents Percentage (%)

Yes 45 75
No 15 25
Total 60 100.00

INFERENCE

It is clear from the above table that 83% of the respondents like packaging
of Pepsi and 17% of the respondents don’t like it.

23
Table – 10
HOW DO YOU RATE PEPSI:

Options No. of Respondents Percentage (%)

Bad 3 5
Satisfactory 27 45
Good 25 42
Excellent 5 8
TOTAL 60 100.00

INFERENCE

It is clear from the above table that 45% of the respondents are satisfied
with the product,42% of the respondents are of the opinion that the product
is good ,8% of the respondents are of the opinion that the product is
excellent and 3% of the respondents are of the opinion that the product is
bad.

24
Table – 11
DO YOU BELIEVE PEPSI IS WORTH ITS MONEY:

Options No. of Respondents Percentage (%)

Yes 21 35
No 23 38
Don’t know 16 27
Total 60 100.00

INFERENCE

It is clear from the above table that 35% of the respondents believe that
pepsi is worth its money ,38% believe that pepsi is not worth its money and
27% of the respondents have no opinion about it.

25
Table – 12
HOW FREQUENTLY DO YOU DRINK PEPSI:

Options No. of Respondents Percentage (%)

Once in a day 8 13
Twice a day 12 20
Once in a week 25 42
Others 15 25
TOTAL 60 100.00

INFERENCE

It is clear from the above table that 42% of the respondents drink pepsi
once in a week, 20% twice a day and 13% once in a day

26
Table – 13
POPULARITY OF THE PRODUCT IN YOUR LOCALITY:

No. of Respondents Percentage (%)

Options
Less 9 15
Moderate 34 57
High 17 29
Total 60 100.00

INFERENCE

It is clear from the above table that 57% of the respondents are of the
opinion that pepsi is moderately popular in their locality,29% the
respondents are of the opinion that pepsi is highly popular in their locality
and 15% the respondents are of the opinion that pepsi is less popular in their
locality

27
Table – 14
AVAILABILITY OF THE PRODUCT IN YOUR LOCALITY:

No. of Respondents Percentage (%)

Options
Less 4 7
Moderate 26 43
High 30 50
Total 60 100.00

INFERENCE

It is clear from the above table that 50% the respondents are of the
opinion that pepsi is highly popular in their locality,43% of the respondents
are of the opinion that pepsi is moderately popular in their locality, and 7%
the respondents are of the opinion that pepsi is less popular in their locality

28
Table – 15
DO YOU THINK PEPSI IS SUPERIOR TO OTHER SIMILAR
BRANDS IN THE MARKET :

No. of Respondents Percentage (%)

Options
Yes 23 38
No 25 42
Don’t know 12 20
Total 60 100.00

INFERENCE

It is clear from the above table that 38% of the respondents believe that
pepsi is superior to other brands ,42% believe that pepsi is not SUPERIOR
TO OTHER BRANDS and 27% of the respondents have no opinion about it.

29
FINDINGS AND SUGGESTIONS
FINDINGS
 It is inferred from the analysis that maximum of the respondents

belongs to age group of 20 years and below.

 It is noted from the analysis that maximum no of the respondents are

students.
 It is noted from the analysis that maximum no of the respondents are

sinlge.
 It is inferred from the analysis that maximum of the respondents are

having Rs5000-10000 family income per month.

 From the survey I found that the consumers came to know about the

pepsi through advertisement this means that they have strong medium
of advertisement.
 It was observed that most of the customers expressed their

unhappiness over the price of pepsi. despite this the consumers prefer
pepsi because of the quality and it shows that customers are very loyal
towards the pepsi brand.
 During the study it is found that packaging of products is excellent,

so we can say that packaging is at its best level, which is also an

influencing factor to attract the customers.
 It is inferred from the analysis that maximum no respondents agree

that promotional tools used by company are good and attractive.

 During the study it is found that the brand image of pepsi is as good

as other brands in the market.

 During the study it is found that consumers have positive attitude

towards pepsi.

30
  Through my survey, I came to know that most of the customers are

satisfied with pepsi.

 Consumers do not differ in their opinion about the price of pepsi on

the basis of age.

 Consumers do not differ in their opinion about the attitude towards

pepsi on the basis of age.

 Consumers do not differ in their opinion about the satisfaction level

towards pepsi on the basis of age.

 Consumers do not differ in their opinion about the loyalty towards

pepsi on the basis of occupation.

 Consumers differ in their opinion about the price of pepsi on the

basis of occupation.
 Consumers do not differ in their opinion about the quality of pepsi on

the basis of occupation.

SUGGETIONS
From the survey of consumers it is clear that not only brand positioning,
brand image and consumer demands are controlling factors of the sale of
product of the company but the attitude and satisfaction also play a major
role. Pepsi should thus focus on the following points:
 During the analysis I found that company is having brand image and

people love the pepsi

 To retain existing customers means offering the best scheme. This

would automatically attract new customers.

 Know the customer needs and understand them thoroughly before

they know them themselves.

31
 There should be no compromise in quality and the availability of

pepsi.
 Let the customers define what attributes are important. Know the

customer’s requirements, expectations, and wants.

 Benchmark the data against competitors, and identify competitive

Strengths and weaknesses.

 To use technology to improve customer service and enable a greater

degree of customer differentiation in order to deliver unique customer

interactions.
 Be committed to getting better and better .

32
CONCLUSION
It is concluded that brand equity might be influenced by attribute
knowledge more than consumer preference. This may be due to consumer
biasness and prejudice, Consumers’ product evaluations are influenced by
memory. The biasness can be reduced by having current information,
experience and knowledge. Therefore, it’s not surprising that brands that
consumers believe offer superior value are most preferred brands chosen
often. Brands with higher equity resulted in greater preferences and high
market shares.
Price is one of the attribute used by consumers to evaluate a product.
Price can sometimes be an indicator of quality; with a higher price indicating
higher quality. Consumers perceive that a higher price can be attributed to
the higher cost of quality control. Some consumers are highly price
sensitive; where by a high prices may shift consumers to Competitive
brands. Therefore price can have a positive or negative influence on
customers.

33
BIBLIOGRAPHY
BOOKS :--
(1) Kothari C.R Research Methodology second revised edition , New Age
International publisher
(2) Philip Kotler Marketing Management Eleventh Revised Edition Eastern
Economy edition
NEWSPAPERS :--
 The Hindustan times
 The Times Of India
 The Hindu
 The Telegraph
Magazines :--
 Advertising Management
 Business India
 Business Today
 Business World
Website :--
 www.pepsiworld.com
 www.pepsico.com
 www.google.com

34
APPENDIX
QUESTIONNAIRE

A STUDY ON CUSTOMER SATISFACTION TOWARDS PEPSI

1. Name of the respondent(optional):…………………………........

2. Age: less than or equal to 20 20-30 31-40 41-50 51 and
above
3. Sex: male female
4. Occupation: student service business engineer others
5. Marital status: married single
6. Income (per month): up to 5000 5000-10000 10000-20000
20000-50000 50000 and above
7. Do you drink pepsi: yes No
8. How long have you been drinking pepsi:………….. Years
9. How do you come to know about the product: parents friends
advertisement others
10. Do you like pepsi advertisement: yes No
11. Do you like its packaging: yes No
12. How do you rate pepsi: Bad Satisfactory good excellent
13. Do you believe pepsi is worth its money: Yes No Don’t know
14.Improvements that have to be made to the product ,if
any………………………………..................................................
15. Popularity of the product in your locality: Less Moderate High
16. Availability of the product in your locality: Less Moderate high
17. Do you think pepsi is superior to other similar brands in the market:
Yes No Don’t know

35