A STUDY ON CONSUMER AND RETAILER PERCEPTION

TOWARDS ENERGY DRINK IN

BY

NAYAN KUMAR ORAM

(Reg. No. -5094)

Of

VISHWA VISHWANI INSTITUTE OF SYSTEM AND MANAGEMENT

Under the Guidance of

Prof. Sasmita Misra

A PROJECT REPORT

Submitted to the

FACCULTY OF BUSINESS MANAGEMENT

In partial fulfillment of the requirements

For the award of the

POST GRADUATE DIPLOMA IN MANAGEMENT

July 2010

1
 DECLARTION

I Nayan Kumar Oram, hereby declare that this project titled “Consumer and Retailer

perception towards energy drink” is an original work carried out by me, under the

guidance of Prof. Sasmita The report submitted by me is a bonafide work carried by me

of my own efforts and it has not been submitted to any other University or published any

time before.

Signature of the Student

(Nayan Kumar Oram)

Date:

Place:

2
 CERTIFICATE

Certified that the project titled “Consumers and Retailers Perception towards

Energy Drink” is the bonafide work of “Nayan Kumar Oram”, who carried out the

research under my supervision, certified further, that to the best of my knowledge the

work reported here does not form part of any other thesis or dissertation on the basis

of which a degree or award was conferred on an earlier occasion on this or any other

candidate.

Signature of the Faculty Guide

(Faculty Guide Name)

Date:

Place:

3
 ACKNOWLEDGEMENT

With immense pleasure, I would like to present this project report for XXX Energy

drinks, GT&T India Pvt Ltd.It has been an enriching experience for me to undergo my

summer training at GT&T, which would not have possible without the goodwill and

support of the people around. As a student of Vishwa Vishwani institute of system

and management I would like to express my sincere thanks to all those who helped

me during my practical training program.

Words are insufficient to express my gratitude toward Mr. Gourav Shah, the Business

Development Manager of XXX energy, Hyderabad,Imran Sidiqquee Project Guide

and Prof. Sasmita Misra Faculty Guide.

My heartfelt thanks go to all who helped me to gain knowledge about the actual

working and the processes involved in various departments.

However, I accept the sole responsibility for any possible error of omission and would

be extremely grateful to the readers of this project report if they bring such mistakes

to my notice.

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 CONTENTS

Chapter Particular Page no

1 Introduction 8

Objectives 9

Need for the study 9

Scope & Limitations 10

2 Research Methodology 12

3 Industry Overview 16

Company Overview 21

Literature Overview 28

4 Data Analysis 37

5 Finding, Recommendations & Conclusion 53

Annexure

Questionnaire 54

Bibliography 57

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 CHAPTER 1

Introduction

Objective

Need For the Study

Scope and Limitation

INTRODUCTION

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 Every individual has his or her own perception of different situations. Again two

individuals may not have the same perception about a similar situation. People also

tend to believe what they perceive to be true irrespective of the objective truth.

Perception thus is a major driving force in shaping the behavior of a person.

Therefore, perception forms an important part of the study of organization behavior.

Perception is essentially Cognition. We cannot perceive without perceiving

something. Thus perception essentially involves that reference to an object which we

disregarded in treating of sensation. But perceiving is a special mode of cognition; it

is that special mode which immediately depends on the actual presence of an object to

the senses. It may in fact be defined as the cognitive function of sensation. It is

contrasted with that mode of cognition which takes place through ideal images. Such

images are not dependent on the actual presence of an object to the senses. They are

representations of absent objects which have already been perceived. Thus the

existence of perception is a precondition of the existence of ideal images

Even in the direct cognition of present objects, association and reproduction play a

very important part. But in perception, taken in the strictest sense of the word, only

those forms of association and reproduction enter which we have called complication

and acquirement of meaning, together with that peculiar mode of free reproduction by

which general states of nervous and mental excitement and their concomitant organic

sensations are revived.

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Objective:

• To find out the average no of customers in various demographic

segmentation taking energy drinks.

• The main objective is consumer perception towards SJ XXX energy

drinks.

• My third objective is found out the retailer perception towards SJ XXX

energy drinks.

• To understand the marketing strategy of energy drinks in the twin city

Hyderabad and Secunderbad to efforts their product.

Need for the study:

• To understand the marketing strategy of energy drinks and try to

position the new industry of energy drinks.

• For the company it is important because they can use different

marketing strategy and apply them to market for future growth of company.

• This study would provide the primary cause for the low market share

of SJ XXX energy drinks in the city like Hyderabad.

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Scope of the study:

• This study will provide us data and information about XXX energy

drinks and its competitor’s position in the market and this will help us to

analyze the market potential and consumer needs.

• For the company, Hyderabad is a big market with large no. of potential

customers the company has enormous scope to capture the maximum market

share.

• We have to visit more than 200 retailers, 100 customers and approach

them about energy energy drinks.

Limitations:

• This project is limited to the region of Hyderabad and Secunderabad in

Andhra Pradesh.

• Local people were not very comfortable with other languages.

• We were not assigned to get any orders without consulting the area

salesman.

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10
 CHAPTER 2

Research Methodology

RESEARCH METHODOLOGY

Research Methodology:

The research include meeting with the retailers and consumers. It included preparation

of the questionnaire to be answered by the people.

Objective of the research:

The main objective of the research was to determine the impact of sale and

promotion offer on the buying behavior of the consumer of energy drinks.

Information based on previous information is research.

• Research is the search or find out new information based on previous

information.

• Research is a scientific and systematic search for pertinent information

on a specific topic.

• Research is a careful investigation or inquiry especially through search

for new facts in any branch of knowledge.

• Research comprises defining and redefining problems, formulating

hypothesis or suggested solutions: collecting, organizing and evaluating data;

making deductions and reaching conclusions; and last carefully testing the

conclusions to determine whether they fit the formulating hypothesis.

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 Research design:

A research design is the determination and statement of the general research approach

or

Strategy adopted for the particular project. The study used an exploratory research

design and was conducted for the period 10th MAY To 20th JUNE 2009.

 Sample size

The number of sample is 226 for retailer and 118 consumers from twin city

Hyderabad and Secunderabad.

 Sampling design

Convenience sampling is used for this study. Convenience sampling is used in

exploratory research where the researcher is interested in getting an inexpensive

approximation of the truth. As the name implies, the sample is selected because they

are convenient. This non probability method is often used during preliminary research

efforts to get a gross estimate of the results, without incurring the cost or time

required to select a random sample.

Types of data collection based on aim and study: There are mainly two types of

data:

1) Primary data collection:

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 The primary data are those which are collected afresh and for the first time, and thus

happen to be original in character. I prepare the questionnaire and collect the primary

data.

2) Secondary data collection:

The secondary data are those which already have been published earlier in Journal or

Paper or Thesis or Books or Report, newspaper etc i.e. any form of publication.

Major data collection procedure:

 Interview

 Questionnaire survey

Interview:

 Method varies from person to person. It depends on our aim and

objective.

 Based on some selective question. Ask a particular person about a

particular subject.

 We get both positive and negative data.

 We should be a trained person and also have the idea about the

locality.

Personal interviews:

• Personal interview method requires a person known as the interviewer asking

questions generally in a face-to-face contact to the other person or persons.

• It is done by based on some selected question.

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 • This sort of interview may be in the form of direct personal investigation or it

may be indirect oral investigation.

2) Questionnaire survey:

This method of data collection is quite popular, particularly in case of big enquiries. It

is being adopted by private individuals, research workers, private and public

organizations and even by governments.

- By developing some question based on our objective step by step.

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 CHAPTER 3

Industry Overview

Company Overview

Literature Overview

INDUSTRY OVERVIEW

Energy drinks are beverages which contain legal stimulants, vitamins, and minerals,

including caffeine, guarana, and taurine, various forms of ginseng, maltodextrin,

carnitine, creatine, and ginkgo biloba. Some may contain high levels of sugar or

glucose.

It may well have come from Scotland in the form of Irn-Bru, first

produced in the form of "Iron Brew" in 1901.

In Japan, the energy drink phenomenon dates at least as far

back as the early 1960s, with the release of the Lipovitan.

Most such products in Japan bear little resemblance to soft

drinks, and are sold instead in small brown glass medicine bottles or cans styled to

resemble such containers. These "genki drinks", which are also produced in South

Korea, are marketed primarily to the salaryman set, to help them work long hours, or

to stay awake on the late commute home.

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In UK, Lucozade Energy was originally introduced in 1929 as a hospital drink for

"aiding the recovery;" in the early 1980s, it was promoted as an energy drink for

"replenishing lost energy."

In 1995, PepsiCo launched Josta, the first energy drink introduced by a major US

beverage company.

In Europe, energy drinks were pioneered by

Dietrich Mateschitz, an Austrian entrepreneur

who developed Red Bull based on the Thai

drink Krating Daeng, itself based on Lipovitan. Red Bull was introduced to the US in

1997 and is the dominant brand there, with a market share of approximately 47%.

By the year 2001, the US energy drink market had grown to nearly 8 million per year

in retail sales. Over the last 5 years, it grew an average of over 50% per year, totaling

over $3 billion in 2005. Diet energy drinks are growing at nearly twice that rate within

the category, as are 16-ounce sized energy drinks.

It is estimated to hit nearly 4 billion in 2006, and both Goldman Sachs and Mintel

predict that the energy drink market will hit $10 billion by 2010. Major players such

as Pepsi, Coca-Cola, Molson, and Labatt have tried to match the small companies'

innovative and different approach, with marginal success.

Energy drinks have also become popular as mixers. Many malt beverages such as

Sparks, 3sum and Max capitalized on the effects of caffeine while drinking alcohol.

Globally it is estimated to be a $ 9-billion segment, which is expected to become $14

billion by 2012.

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Today there are many international brands doing business in different countries which

includes brands like RockStar, Red Bull, Burn, Monster, Full Throtle, Nos, Battery,

Sting, Rage, SJ XXX, RipIt, BooKoo, Crunk, Hype, Blast, Lightning Bolt, Hooah!,

Xenergy, Duff, QF, Tiger, Von Dutch, Race, Tab, MG Puma, Shark, SoBe, Pussy,

XL, Cloud 9, Power Horse, etc.

Energy drink industry in India is growing with very convincing speed. It can be said

that the foundation pillars of this industry was put forth by Red Bull. It entered the

Indian market sometimes back in the year 2003 and since then the energy drink

market took its way.

Energy drink market was of Rs.100 Cr. till 2005 but it gained acceleration from then

on and the energy drink market in India is growing rapidly above 50%. It estimated

that the metros are populated by young, trend setting adults which are also the largest

energy drink consuming markets in India. Today it has a market potential of Rs.500

Cr. + in India.

The energy drinks market in India is expected to double in size till the end of 2010 as

a host national and international players venture into the segment. The market for

such drinks is expected to double in size to Rs.1,000 Cr. from Rs.500 Cr. presently.

Energy drinks in India till a year back were dominated by players such as Rhino’s,

Bullet, Cloud 9 and Red Bull among others has suddenly spruced. Sales, however,

started picking up post the entry of established players such as Pepsi, Amway and the

latest entry of Coca Cola & GT&T in this segment has shown the market potential of

the Energy Drink segment.

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Pepsi has been marketing its energy drink So Be since November 2008, while Amway

XL has been around since September 2009, Red Bull and Power Horse, who have

been around for some years now, perhaps were the only existing players to be

marketing such products aggressively.

It is believed that the fun drinks such as colas segment has declined by 5% since

2007. “With the positive changes in the perception of health and fitness in India, the

industry foresees a huge potential for supplementary drinks like the Energy Drinks.

Amway sells health drinks under the Amway XL label which comes in 2 flavors

Citrus Blast and Tropical Blast, priced at Rs.450 for a pack of 6.

The energy drink segment is the fastest growing segment in the ready to drink

category. The reason being that India has a youth centric population and we are

urbanising very fast.

Players are taking to unique marketing strategies to expand the market for energy

drinks in India.

Red Bull, for instance, started free sampling at schools and colleges before launching

their product. Even after the launch, the free sampling continues to enhance brand

recall. They do free sampling at colleges.

There are many companies who entered into this energy drink segment after Red Bull.

Some of them are Power Horse, Burn (Coca Cola), Cloud 9, SJ XXX (JMJ launched

this year).

Among these brands Red Bull holds the market share of about 83%, followed by

Power Horse with 9%, Cloud 9 and RockStar with 3.2% and 3% and the rest by other

brands including SJ XXX, Burn, So Be, etc.

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19
 COMPANY OVERVIEW

SJ XXX Energy is a sensational product by the

renowned JMJ group, marketed by GT&T (a part of

JMJ group). It is a global brand manufactured in

Dubai. It has been a successful brand since it’s

inception in Middle East. So they decided to launch

it in Indian market, which is a huge potential market.

JMJ Group founded by Jagadish M. Joshi, has core business strengths in perfumery

blending and manufacturing of herbal extracts. Started its business in the tobacco

sector with brand name Goa Panmasala. Their product is the well known brand Goa

Gutkha. It is the leading brand in this segment of gutkha. Goa gutkha is marketed in

several countries including Middle East, Africa, South Asia, etc.

JMJ Group in the new millennium wanted expansion in their product and

manufacturing variables.

Therefore they decided to enter in variety of manufacturing and other sectors.

JMJ Group is Rs.1000 Cr. group with 29 business entities engaged in diversified

activities, ranging from

Manufacturing:

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The JMJ Group manufactures ‘Attar Hina’, and a range of herbal extracts, which has

export market, and has packaging product manufacturing facilities at Silvassa.

Trading :

JMJ Industries (Nepal) is a joint venture forged between JMJ (India) and Shanker

Group to produce and market its premium quality pan masala for the region of Nepal

and some parts of India. At present Goa, of this industry, holds a major share of

Nepalese chewing tobacco market.

Construction (JMJ Infrastructure (P) Ltd.):

UIE is located at Shikarpur, Roorkee about 172 km from Delhi. JMJ Infrastructure (P)

Ltd owns the land. The land is notified for industrial use extending all fiscal and other

benefits & concessions to eligible industrial units being set up in Uttarakhand.

Hotels & Hospitality :

The company is building five-star hotels in New Delhi, Jaipur, Dehradun and

Hyderabad, three-four star hotels in Pune, Raipur and Udaipur. The company has

acquired the required land in all these locations.

The total investment for these projects is estimated at around Rs.2,000 Cr. It has

raised Rs.125 Cr. through FDI from GT&T of UK that has invested in Asrani Inns

and Resorts, which it acquired recently, to focus on hotel business.

Leasing & Financing,

Technical Services.

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They have also entered the potential Retail sector:

In the retail sector, the company is already into ‘convenience stores’, with 8 of the

typical 300 sq.ft. area stores in Mumbai. Plans are to establish a national chain of such

stores, with products that include the company’s own confectioneries and packaged

drinking water.

Currently the group has launched SJ XXX – Energy Drink in two flavors under the

subsidiary GT&T India Pvt. Ltd.’.

Goa Technology and Trade (GT&T) headed by Sachin Joshi a young and

optimistic entrepreneur from Goa has visioned to capture maximum of the Energy

drink market in India and Asia.

SJ XXX is a sensational product by the renowned JMJ Group, marketed by GT&T (a

subsidiary and part of JMJ Group). It is a brand manufactured in Dubai, UAE. They

had decided to launch it in the Indian consumer market which has huge potential

customers.

XXX will be made available in London and Dubai.

The firm has earmarked Rs.20 Cr. for promotional activities and advertising for XXX

in India.

SJ XXX is a premium brand targeting the niche market of youths and trendy

consumers with high income.

They entered in India with a bang being a primary sponsor for the Kolkata Knight

Riders (KKR) in the DLF IPL T20 cricket tournament. They are also official and

22
primary sponsor for the prestigious Commonwealth Boxing Championship which is

to be held in the forthcoming year hosted by India.

The Parx Super Car Show is an ostentatious parade of the most expensive high-

performance automobiles in the city. It reflects the passion for premium niche cars by

the members of Super Car Club of India. Only the crème de la crème of the society

have such cars. The cars are valued at Rs.1crore or more. These fast, powerful cars

are all about “Xperiencing Xtreme Xcitement” as one zips past at a speed of 100km p/h in just

few seconds.

And that’s what XXX energy drink is about. As the Title Sponsor of Parx Super Car

Show 2010, the XXX energy drink reflects sheer excitement and pure power

unleashing raw energy. The adrenalin rush that one experiences after having a XXX

energy drink is the same as driving these super fast cars. Everything about these cars

is extreme from power, size, speed to price.

They entered in Indian market with a bang being a primary sponsor for Kolkata

Knight Riders (KKR) in the DLF IPL T20 cricket tournament. They are also official

and primary sponsor for Commonwealth Boxing Championship which is to be held in

the forthcoming year.

It is being launched with the objective of providing an

alternative energy drink to the consumer and hence giving

him a winder extremely high on energy and high on life.

The brand XXX energy comes in two variants currently- REJUVE and NICOFIX.

The USP of “NICOFIX" is that it is formulated with NPR which reduces the Nicotine

urge and “REJUVE" is an exciting energy drink specially formulated to suit Indian

23
taste buds." REJUVE” rejuvenates your mind and body and enhances your immunity,

thus increasing your stamina.

Both the cans are very competitively priced at Rs.75/- for 250 ml.

These exciting products come from Goa Trade and Technology India Pvt. Ltd.

(GT&T a part of JMJ Group) which is a Rs.1000 Cr. company and are a strong

reflection of the passion of its young Vice Chairperson, Sachin Joshi.

Over five years of meticulous research coupled with the dynamism and sheer

enthusiasm of Sachin Joshi has given birth to SJ XXX- the energy drink for the new

generation.

About Us

GT & T India Pvt Ltd: We are a young go getter company with an unstoppable force.

A force that is aggressively paving the way with zest and vigour. A force that reflects

the spirit of dynamism and growth. At GT & T we are driven by one single passion –

the passion to excel through quality. We are known for our strategic thinking and

innovative vision. Our foray into the beverage sector in the FMCG sector has made

waves across the Indian market. On December 23rd 2009, GT & T launched XXX

Energy Drink at Grand Hyatt. It was a much talked about event. It was an exciting

moment that captured the 3 XXXs i.e Xperience Xtreme Xcitement, which is also the

mantra of our company at GT &T.

The management

Sachin Joshi: XXX energy drink is the brainchild of a young, enthusiastic and

aggressive entrepreneur - Mr. Sachin Joshi. It was his sharp business acumen

24
combined with creative ideas that led to the success of XXX energy drink brand

within a short span of time. In a niche segment

At GT & T, we believe in recruiting high caliber professionals who are committed to

performance and are result-oriented. They come with a wealth of knowledge,

experience and expertise and combine strategic thinking and market analysis to

achieve the best. A team of young and enthusiastic professionals go out of their way

to work together shoulder to shoulder and churn out ideas that work.

SWOT analysis

Strength:

a. Well reputation of the marketing group,

b. Growing market potential,

c. Launch success in Mumbai & Goa,

d. XXX is seen as the young and trend setting brand in Mumbai and Goa

followed by Other major cities,

e. Attractive design and name,

f. XXX ties up with Café Coffee Day across India.

g. Brand endorsed by Bollywood King Sharukh Khan, Neha Dhupia and Kolkata

Knight Riders,

h. Span of Control and Hierarchy.

Weakness:

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 a. Full concentration in Mumbai & Goa market and not realizing the potential of

Hyderabad,

b. Low investment in AP market,

c. Low investment in advertisement,

d. Not very attractive schemes

e. Very less awareness of the product among energy drinks consumers,

f. Huge market share gap compared to existing market leaders,

Opportunities:

a. XXX-Nicofix can be a good option for reducing tobacco craze especially in

India,

b. XXX-Rejuve can be a good option for consumers who takes care about their

immune system,

c. Primary sponsorship to Kolkata Knight Riders and Commonwealth Boxing

Championship,

d. Entry of global players in Indian retail industry, thus increasing the retail

outlets,

e. Due to very hot climate during summer XXX can be well positioned in the

market.

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Threat:

a. Well established competitors like Red Bull, Power Horse, Cloud 9,

etc. in Hyderabad,

b. More consumer demand for competitor’s product,

c. More awareness and demand for Soft drinks than Energy drinks,

d. Health drinks (such as Glucon-D, Amul Energy, Fruit juices, etc.).

LITERATURE OVERVIE

Meaning and Significance of Perception:

Perception is a cognitive process where in an individual collects, organizes, and

interprets data from the environment to obtain a meaning from it. In fact, perception

differs from person to person for the same situation. Each person interprets the data in

their own way and may come up with different meanings. For instance, when the boss

comes to each employee’s desk, one employee might think that he/she is trying to be

friendly with the employees; another might think that the boss is keeping an eye on

the employees. It is also possible that people’s perception of events or situations is

nowhere close to reality. People react to situations based upon their perception of

reality rather than the reality itself. Therefore, understanding the variations in the

27
perceptions of individuals will help in understanding their organizational behavior

better.

Sensation vs. Perception:

Often confusion arises over the relationship between sensation and perception.

Behavioral theorists believe that individuals interpret situations based upon their

senses and stimulation and that this was how they gained knowledge of the world.

Individuals use their sensory organs to sense – for instance, eyes to see, ears to hear,

skin to feel, nose to smell, and tongue to taste. Therefore, sensation is the basic

behavior of individuals caused by their physiological functions. Perception, on the

other hand, involves people’s assimilation of raw data through their senses, after

which they organize and modify the data with the help of cognitive thinking to form a

coherent picture of the situation.

External Attention Factors:

The external attention factors are:

Intensity

According to this principle, the intensity of the external stimulus decides the

probability of its being perceived. For instance, a bright light is more likely to be

noticed than a dim one.

Size

According to this principle, a large object is more likely to be noticed than a smaller

one. For instance, a big super market is more easily noticed than a small grocery store.

Contrast

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According to this principle, a stimulus that stands out against the expectations of

people is bound to attract more attention. For instance, employees working at airports

get so used to the noise that they may not notice the sounds made during the takeoff

and landing of planes.

However, if on any day there is some reduction in air traffic, they will notice the

reduction in noise level.

Repetition

According to this principle, a stimulus is more likely to be noticed if it is repeated

several times.

Motion

This principle states that individuals notice objects that are in motion more than those

that are stationary.

Novelty and familiarity

According to this principle, new objects in a familiar situation and familiar objects in

a new situation attract people’s attention more.

Internal Set Factors

The internal set factors are:

Learning and Perception

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The process of learning creates some expectations in individuals. As a result, they

tend to

Perceive things in a particular way. What people see and hear is influenced by their

expectations. Perceptual set in the workplace: Employees working in an organization

for a certain period tend to interpret situations and events in a similar way. They

might use certain phrases that are unique to their department or organization to

symbolize certain things.

However, in general, learning leads to substantial individual differences. Every

employee

Interprets a particular situation based upon his/her perception. For example, it has

been observed that in general, the perceptions of the trade union and the management

regarding the prevailing working conditions in an organization differ.

Motivation and perception

Perceptual selectivity is also influenced by motivation. Primary motives such as

hunger and thirst have an impact on the perception of individuals. For instance, while

walking on the road a person who is very thirsty might pay more attention to a store

selling soft drinks.

Secondary motives such as the need for power, affiliation, and achievement also have

a major influence on perceptual selectivity. For instance, employees who feel that

they have the need to attain power, affiliation, and achievement might be more

attentive to the different situations in the organizations, as they are constantly on the

look-out for opportunities.

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Perception may also have an influence on motivation. For instance, some employees

who are dedicated to their work might not mind attending office even when sick as

they perceive the work to be more important than their health.

Personality and perception

Differences in the personality of individuals due to variances in age, gender,

experience, etc. also might influence the perception of individuals. For instance,

young managers might complain that senior managers are resistant to change in

technology, management practices, etc. Similarly senior managers might complain

that young managers take hasty decisions and implement unnecessary changes.

Factors Influencing Perception

The factors that help in shaping perception are the perceiver, the target which is being

perceived, and the situation in which perception occurs. Although these factors help in

shaping the perception of individuals, they also sometimes distort their perceptions.

The Perceiver

People’s personal characteristics play an important role in the way they perceive

situations, events, objects, people, etc. The various personal characteristics can be a

person’s motives, attitudes, past experiences, interests, and expectations. Those who

have a positive attitude toward a particular thing or situation might view it in a

completely different way from people having a negative attitude toward it. Studies

conducted in the field of OB have also shown that people’s perception is greatly

influenced by their unfulfilled goals and needs.

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It has been observed that people who are engrossed by their personal problems might

not be able to concentrate on their work properly. This shows that personal interests

of individuals also have an impact on perceptions.

People’s perceptions might also be influenced by their past experiences. For instance,

an employee who has been reprimanded in the past by his/her superior for a minor

mistake might perceive that superior to be a strict official. Expectation is another

characteristic that has a major impact on the perception of individuals. For instance,

people generally perceive the products sold by reputed companies to be of good

quality. However, expectations might also lead to distortion of perception. For

instance, policemen are perceived as fearless and authoritative, which might not be

true in all cases.

The Target

The attributes of the target (stimulus) such as motion, sound, size, etc. also affect

perception. For instance, people who are very tall get more attention in a crowd.

Sometimes people might not perceive the target in isolation but associate it with some

other aspects or events similar to it. In doing so, they might group unrelated objects.

This grouping is largely done on the basis of physical proximity of the objects in

consideration. It has also been observed that the tendency to group objects or events is

more if individuals notice a greater proximity between them.

The Situation

Situational factors in the environment such as time, location, climate, a person’s state

of mind, and other factors play a vital role in shaping the perception of individuals.

Social Perception

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Social perception is a cognitive process through which other individuals are perceived

by the perceiver. Social perception also involves the study of how an individual gets

to know other individuals. Research has indicated that social perception is influenced

by the characteristics of both the perceiver and the perceived. Social perception is

influenced by the:

• personality of the perceiver

• personal characteristics of the perceiver

• self-esteem of the perceiver fact that an individual perceives others

depending upon many skills and not just one skill

The characteristics of the person being perceived that influence social perception:

• Status of the individual (of person being perceived)

• Role played by an individual in the organization.

The following factors help in understanding the social perceptual process in

organizations better:

Attribution

Attribution is the way in which people explain the causes for their own or others’

behavior. With the help of attribution, individuals try to understand the reasons behind

the behavior of one another and also draw conclusions about the factors that

influenced that behavior. There are two types of attributions. They are dispositional

33
attribution and situational attribution. In dispositional attribution, people’s behavior is

explained with the help of internal factors such as their personality traits, their

motivation, ability, etc. In situational attribution, people’s behavior is attributed to the

external factors in the environment. These could be the social influences they are

subject to, equipment being handled, etc.

Stereotyping

Stereotyping refers to the generalization of the characteristics of all members

belonging to a certain group. People judge others based on the perception they have

about the group to which these individuals belong and do not consider the unique

characteristics of the person in question. For instance, politicians are considered to be

manipulative and corrupt. However, judging a person based upon the characteristics

of a group is unfair because every individual is unique and different from others. In

the organizational context, stereotyping often takes place based upon gender, race,

ethnicity, etc.

The Halo Effect

In the halo effect, the perceiver tends to judge a person depending upon a dominant

trait which can be either positive or negative. The various traits could be intelligence,

sociability, aggressiveness, etc. The halo effect is generally found in performance

appraisal. Often appraisers rate the performance of employees based on one particular

trait rather than by taking all aspects into consideration.

Halo effect

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• Is a common error made in performance appraisals

• Has two components viz. true and illusory

• Emphasizes only a particular trait of an employee and does not take

into account the overall picture.

• Have negative consequences which have to be avoided.

Conditions under which halo effect might occur:

• When the perceiver is not familiar with certain traits or does not

frequently encounter them.

• When the traits are ambiguous and cannot be clearly expressed in

behavioral terms.

• When the traits have moral implications.

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 CHAPTER 4

Data Analysis

DATA ANALYSIS

Graphical analysis of consumer’s perception towards energy drinks:

The analysis and interpretation is based on the data collected through questionnaire:

Below mentioned are the no. of respondents in percentage out of total 118 respondents:-

36
From the above figure it can be interpreted that only 44% (51) of the consumers know

the presence of energy drinks in the market and 56% (67) of the consumers had never

heard of it before.

From the above analysis it can interpreted that majority of consumers have heard

about energy drinks.

Below mentioned are the no. of respondents in percentage out of total 51 respondents:-

37
From the above figure it can be interpreted that 75% (38) of the previous respondents

have said they have tasted energy drinks and 25% of the respondents said that they

had heard about it but not tasted yet.

Majority of consumers they tested energy drinks.

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From the above figure it can be interpreted that 66% (33) said that they consume

energy drink in weekends, 24% (12) said that they consume regularly, 8% (4) said

they consume twice a month and 2% said they consume occasionally.

Majority of consumers said that they prefer to drink in weekends.

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From above figure it can be interpreted that only 2% consume SJ XXX regularly,

other consuming brands are Red Bull 78%, Cloud 9 14% and 6% others.

Majority of consumers that they preferred Red Bull regularly.

40
From the above figure it can be analyzed that 9% of the consumers like ingredients in

their preferred brand, 64% like the quality, 23% like the taste and 4% like some other

features.

From the above figure it can be interpreted that majority of the consumers like the

quality in their preferred brands.

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It can be analyzed that 41 % of consumers think that energy drinks are costly, 43%

think that energy drinks are good for health, 9% take it just for fun and 7% have other

opinion.

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From the above figure it can be interpreted that majority of the consumer think that

energy drinks are good for health and at the same time costly.

From above figure it can be analyzed that 14% said that there is no need for energy

drinks, 54% said that yes energy drinks are needed and 32% said that they can’t say.

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From above figure it can be interpreted that majority of them think that Energy Drinks

are needed.

It can be analyzed that 36% of the consumer think that XXX is energetic, similarly

14% said that it is good, 34% said that it is highly energetic, 5% said that it is just

another one drink and 11% said that they can’t say.

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The above figure interprets that majority of the consumers think that SJ XXX is

energetic drink.

From above figure it can be analyzed that 68% of the consumers said that energy

drinks are scientifically tested, 12% said that no they are not and 20% replied they

can’t say.

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From the above data it can be interpreted that majority (35) of the consumers think

that energy drinks are scientifically tested.

From above figure it can be analyzed that 46% said there is no need to add

ingredients, similarly, 15% said yes and 39% said can’t say.

Majority of the consumers think that no need more ingredient in energy drinks.

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Graphical analysis of retailer’s perception towards energy drinks:

The analysis and interpretation is based on the data collected through questionnaire:

Below mentioned is the no. of respondents in percentage out of total 226

respondents:

47
From the above figure it can be analyzed that 74% retailer sales Red Bull,

15% Cloud 9, 7% Sj Xxx and rest are other brands.

Majority of retailer prefer Red Bull energy drinks.

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From the above figure it can be conclude that 62% retailer said that they are giving

good offers and 24 % giving good promotion.

Majority of retailer like offers of energy drinks.

It can be analyzed that 64% of the retailers said energy drinks are doing good business,

whereas 36% said against it.

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The above data interprets that majority of the retailers think that energy drinks are doing good

business in this region.

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From above figure it can be analyzed that 2% of the retailers are fully satisfied, 9%

are satisfied, 32% are neither satisfied nor dissatisfied, 23% are dissatisfied and 34%

are fully dissatisfied.

The above figure shows that majority of retailers are dissatisfied with the promotional

activities of SJ XXX.

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From the above figure it can be analyzed that 84% said that more activities are

needed to be done, 1% said against it and 15% said they can’t say.

The above figure shows that 84% of the retailers think that more thing or activities are

needed to be done by the companies to attract customers.

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53
 CHAPTER 5

Finding, Recommendations &

Conclusion

FINDINGS

• The observation was that SJ XXX energy drink have tough

competition

with Red Bull and Cloud 9.

• Red Bull being the no.1 brand worldwide has the maximum market

share.

• In the twin cities of Hyderabad/Secunderabad consumers are mostly

modern, young, adventurous, ready to spend quite sum of amount and full of

excitement.

• Whenever there is any occasion where the consumer wants to buy the

energy drink, the first name comes in his/her mind is Red Bull.

RECOMMENDATIONS

• The company should focus on more promotion.

• Give some advertisement through media.

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 • Recruit more and more sales executive.

• The company should apply pull strategy to capture the market rather

than push strategy as it is following now.

CONCLUSION

• It can be conclude that the company GT & T give more and more promotion

for SJ XXX and it will be increase their sales.

• I also learned how and when to apply raw ideas and strategies following the

situations other than the way it is planned.

QUESTIONNAIRE

Consumers Perception towards Energy Drink:-

Q1] Have you heard about energy drinks available in the market?

a] Yes b] No

[Note: If the answer is yes then proceed further or else stop questioning]

Q2] Have you tasted any of them?

a] Yes b] No

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Q3] How often do you prefer to drink Energy Drink?

a] Regularly/Daily b] Week Ends c] Twice a month

d] Occasionally

Q4] Which energy drink do you consume regularly?

a] Red Bull b] Cloud 9 c] XXX

d] any other specify__________.

Q5] What is that you like most in your Energy Drinks?

a] Taste b] Quality c] Ingredients

d] any other specify__________.

Q6] What is your perception about energy drinks?

a] Good for health b] Just for fun c] Costly

d] any other specify__________.

Q7] Do you think energy drinks are needed?

a] Yes b] No c] Can’t say

Q8] What is your perception about XXX Energy Drink?

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 ____________________________________________________ .

Q9] Do you really think that Energy drinks are scientifically tested energizers?

a] Yes b] No c] Can’t say

Q10] Do you think more things need to be added in energy drinks to improve
health?

a]Yes b] No c] Can’t say

Retailers Perception towards Energy Drinks:

Q1] Which Energy drink doing well business?

a] Red Bull b] Cloud 9 c] SJ XXX d] Other

Q2] Why it is doing well?

a] Offers b] Discounts d] Promotion

Q3] Do you think that Energy Drinks have good business?

a]Yes b] No

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Q4] Are you satisfied with the promotional activities of SJ XXX?

a] Fully satisfied b] Satisfied

c] Niether satisfied nor Dissatisfied

d] Disatisfied e] Fully dissatisfied

Q5] Do you think that more things are needed to be done to attract customers?

a] Yes b] No c] Can’t say

BIBLIOGRAPHY

• Philip Kotler (2009), PRINCIPLES OF MARKETING, 13th Edition, Pearson

• Dennis Adcock, Ray Brad field (1995) MARKETING PRINCIPLES AND

PRACTICES 2nd Edition Pitman Publishing

• Lamb, Hair, Mc Daniel ((2004), MARKETING 7th Edition,Thomson, South

Western

• E Jerome Mc Carthy (1987),BASIC MARKETING-A MANAGERIAL

APPROACH,Irwin Publication

• Mike Worsaw, D Berkeley (1995) 1st Edition,MARKETING IN

ANAGEMENT,

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 Pitman Publishing

• Subhash C Jain (2007) 7th Edition,BASIC MARKETING ,Tata Mcgrill

http://www.Energydrink.com

http://www.thexxxenergy.com

http://www.cloud9.com

http://www.redbull.com

http://www.learnmarketing.com

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