Consumption Patterns of Soft Drinks and Fruit Juices - Free Essay Example

Comparative Study On Consumption Patterns Of Soft Drinks And Fruit Juices A COMPARATIVE STUDY ON CONSUMPTION PATTERNS OF SOFT DRINKS AND FRUIT JUICES EXECUTIVE SUMMARY Soft Drinks were common preference among all the individuals before juices were being introduced, With the changing lifestyle and income levels, people are shifting their consumption patterns and have therefore become more health conscious thus leading to increase in demand of juices. Market Research is based on some underlying parameters like: †¢ Changing consumption pattern Health factor †¢ Status consciousness †¢ Varying lifestyle The basic subject matter of the research, comparative analysis of Soft Drinks and Juices is focused to study the mind/taste of different age group of people. The study starts with determining the major players in the soft drinks and the juices market, their overall consumption pattern among the people and ends up with the conclusion as per the state of mind of the average ra tional human being. TABLE OF CONTENTS Certificate from the Institute( Acknowledgement( ( Executive Summary Chapter-1    Introduction    Page No( 1. 1 Beverage 8 1. 2 Overview of the Industry 11 1. 3 Recent issues 14 1. 4 Study of growth of Soft Drink market 20 1. 5 Major players in Soft Drinks segment: Coca-cola                                                                               21 Trends In Consumption Patterns Trends in Consumption Patterns This article is designed to: 1. define economics, 2. define microeconomics, 3. define law of supply, 4. define the law of demand, and 5. to identify the factors that lead to a change in supply and a change in demand. Economics is defined as: The social science that deals with the production, distribution, and consumption of goods and services and with the theory and management of economies or economic systems (www. answers . com accessed 02Oct07). Basically I believe that t his means that you are trying to interpret how people will react. Economics is broken down into 2 parts Micro and Macro economics. Microeconomics is defined as: The study of the operations of the components of a national economy, such as individual firms, households, and consumers (www. answers . com accessed 02Oct07). This is a study of the relationship between the consumer and the supplier based on various fluxuations in the market. The Law of supply is defined as: A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity of goods or services offered by suppliers increases and vice versa (www. answers . com accessed 02Oct07). The law of demand is described as: A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease and vice versa (www. nswers . com accessed 02Oct07). Supply and Demand: The market process is generally modeled using the economic concepts of supply and demand. The plans/desires of consumers are embedded in the concept of demand and the plans/desires of producers in the concept of supply. The plans of these two types of economic actors are brought together in markets, which are the entities in which transactions occur. In a modern economy, markets do not require that the buyers and sellers meet in a geographic place, so markets no longer require actual marketplaces. ____________________________________________________________ ___________ The business world is very susceptible to the subtleties of consumer choices. The ability to anticipate the trends in consumer consumption patterns is vital to any company desiring to be a leader or major factor in their industry. Millions of dollars are spent each year in research and analysis to determine or to create trends in, not only who the company’s customers may be, now and in the near future, but also, what will those customers want to buy, and why. To truly understand trends in consumption patterns, one must first understand the basic principles of economics. Economics is the science that deals with the production, distribution, and consumption of goods and services (economics, n. d. ). The branch of economics dealing with particular aspects of an economy, as the price-cost relationship of an organization is called microeconomics. This aspect of economics concentrates on the laws of supply and demand. According to Colander (2004), the law of supply states quantity supplied rises as price rises, when all other factors remain constant and the law of demand states that the quantity of a good demanded is inversely related to the good’s price. When price goes up, quantity demanded goes down. When price goes down, quantity demanded goes up. There are several factors that lead to changes in consumption patterns thus a change in supply and change in demand. Utility Many believe that people buy things for their own self interest. Sales courses indicate the need to know this self interest because the customer really is not buying their product. The actual purchase is the benefit that the customer will receive from buying their product. Knowing this benefit would enable the seller to set pricing at levels that would ideally be the most beneficial for both buyer and seller. The customer benefit could be anything. Satisfaction, pleasure, good will, fulfillment of a need are some examples of the benefit received, but are