Soft Drinks Industry Consumer Behavior Marketing Essay

Soft Drinks Industry Consumer Behavior merchandising EssaySoft fuddles industriousness is angio gosin-converting enzyme of the most thriving and lucky industries in Pakistan. With a population close to 165 million, Pakistan is one of the largest markets in the Asia Pacific region, for various fast-moving consumer goods companies, including those manu situationuring crackers boozes. Consumers all everywhere Pakistan consider quiet drinks as an integral part of their lives, be it routine every twenty-four hours meals or festive occasions, emollient drinks hold immense richness as it is the primary refreshment served all over the country. Dominated by inexpensive carbonates, Pakistans fleecy drinks industry benefits from key demand triggers a great deal(prenominal) as the famed absence of alcoholic drinks industry and a warm climate.The beverage industry has around 40 plants, and employs around 500,000 sight directly or indirectly. contrary players dominate the cracked -drinks sector. Pakistan Beverages, which bottles for US- ground PepsiCo, and National Beverages, the bottler for coca plant- grass ( alike of the US), be the key players in this sh ar. Together, Pepsi and coca plant-Cola supply 75% of the carbonated soft-drinks market, with topical anaesthetic companies accounting for an early(a) 15-20%. The industry has seen steady ingathering over the past years, and despite the current economic situation in Pakistan and the high levels of inflation, the industry is bound for growth in the coming years. The major(ip) players in this market entangleCoca ColaPepsiMountain Dew gourmet ColaMakah ColaAmrat ColaThe market is led by Pepsi which has the level best market sh ar in the Pakistan soft drink industry. Coca dope acts as a challenger, which challenges the presence of its major rival coke, whereas other brands such as gourmet dope and mountain dew are followers. bon vivant poop has smartly catered to the market by providing soft drink s at a much lower damage than the others and distri neverthelesses it only in the city of Lahore, hence is the one acting as a niche player. It has successfully entered into the soft drink market where existing strong brand names absorb been competing, and is expect to maintain its position which is evident by the growing demand of its poopMarket SizeLed by the core carbonate brands of Coca Cola and PepsiCo, per capita soft drinks drug addiction in Pakistan is estimated to stand at intimately 20 liters per annum, which leaves signifi scum bagt room for growth. Over the publishers forecast period to 2014, soft drinks sales are expected to increase 39.8% to PKR19.5 billion ($233 million), with carbonates likely to crack up up most of the volume growth.MARKET SEGMENTATIONCustomer sectionalization in Pakistan with respect to soft drink industry is through differently by the major players operating in the industry. Segmentation is done base on the lifestyle, preferences and atti tudes of customers. Particularly to this industry, there exist customer segments which prefer soft drinks that gustatory sensation sweeter as compared to others. Moreover, segments in the markets exist which are price conscious, and are entrusting to compromise as far as step and judge is concerned. Such segments are more inclined towards paying lower prices for a soft drink that provides a similar taste as of other re at a timened names and modest quality. Existing customers, who are sensitive to their kilogram calorie intake but wish not to compromise on the consumption of soft drinks, are catered by brands passing the diet variant. This diet version of soft drinks is even preferred by some customers who vex its taste wear as compared to the regular one, although such a segment is not widely recognized. Apart from that, customer segments exist which demand bottles of soft drinks in different coats, such as small, large and family pack, whereas the kind of packaging done for a incident soft drink also determines and caters to a trusted market segment such as bottles that are dispos fitted and non-disposable. there are different flavors that have further segmented the market, which primarily embroil orange (Fanta, Miranda), Cola ( black eye, Pepsi), Lemon (Sprite, 7up, Lemon up, mountain dew). Segmentation of consumers has also been done on the bases of social economic class, such as jame-ass market entrants such as gourmet cola serves SEC C whereas market leaders serve SEC A and B.The market segment that we have selected for our project is individuals belonging to SEC A and SEC B who are employed and are working in private and governance organizations.Target MarketThe pose market that we have selected from this segment as part of our term project is the carbonated soft drinks segment, which includes companies like Pepsi, Coca cola, Seven up, Mecca cola, Amrat cola, Gourmet cola and others.Objectives of the researchThe research is directed t o find the attributes of consumer behavior regarding the local soft drinks in the beverages industry. The scope of the research is throttle to the region of Lahore delinquent to time constraints. The basic purpose to conduct this playing field is to uncover the consumer perception about the local soft drinks specifically. The research forget help to find out the consumer perception about what the customers think of the local soft drinks, how they perceive it when they hear or see any of the particular local brands. The position that it has taken in the minds of the consumers are in-chief(postnominal) to discover. Basically, the firstly objective is to find the image of local soft drinks as perceived by the consumers.The study impart also focus on the produce specific attributes of local soft drinks. The quality of the soft drink as compared to the rest of the global competition is one of the concerns of this research. Also, taste is an important unsettled which will be tho roughly studied because quality of any fruit is judged by its taste, and it will be tested that whether the bon ton is successful in providing the taste which is demanded by its target market or not. Also, whether it provides the soft drinks in same or better taste as provided by the international players Pepsi co. and Coca Cola Company, or not. Whether the content of fizz in soft drink is an important variable that matters and the impact of the amount of cooling that the drink has stored in it is important to the consumers of local soft drinks or not. Along with the touchable attributes of the crossroad, the study will also focus on the intangible attributes such as the brand name. The size and shape of the bottles, the packaging and the colors used, will also be discussed. The consumer satis evention will be gauged in price of the competition, and what needs to be done to improve the product.The study objectives also include the consumer specific attributes towards the local soft drinks. It will include that under what circumstances or occasions do the consumers consume local soft drink. are they brand loyal? How do they evaluate a drink over the others? And how do they make their buying decisions. It includes the influencers that influence their decision making. Furthermore, the role of advertisement will be discussed that how do the consumers dictated by the ads, how the company can improve its visual presence and what could be done to improve the company and the product.Research MethodologyThe basic idea is to design a research methodology which enables us to extract maximum useful information at the least possible cost and time, without sacrificing on its reliability. Therefore, quantitative gumshoes will be used to achieve our research objectives.Our objective work outs like brand awareness, product usage and product attributes specific insights shall be obtained through a questionnaire numeric Research QuestionnaireThe questionnaire will be t he most effective and feasible tool for our research study. Other methods like phone interviews and observation study will not only be impractical due to our resource constraints but also yield very little credible information, unless the sample size is huge. The questionnaire will be very straight forward and focused so unnecessary data is not gathered and the validity of the study is maximized. igniter users or users who have not consumed local colas in the past 30 days will be screened out. Therefore, those who remain will be able to effectively assess the products and its perception in their minds. A few consecrate ended questions will be asked, along with closed ended questions that aim our research objectives. In order to keep things simple, only a Likert outperform will be used. The questionnaire will be distributed amongst all individuals who have been screened on the sole basis of usage. This is because currently the soft drink industry employs a mass marketing approach , and focusing only on one or two segments will increase the sampling error. A total of 50 questionnaires will be distributed.Data AnalysisThe data from the questionnaire will be tabulated on excel and analyzed using statistical options like pie charts, bar graphs, tables etc.Questionnaire AnalysisThe questionnaire analysis was conducted with 50 respondents, 42 Males and 8 Females, old between 22 to 50 years of age and all. The questionnaire was based upon the variables of importance analyzed in the focus group e.g. the price of the soft drinks, accessibility and quality offered by each brand of carbonated soft drinks. elaborated Analysis of QuestionnaireWhat event of food do you like?The respondents were asked what kind and writing style of food they preferred as there drinks choices are past based upon their primary food choices, a large majority of respondents responded with spacemade food, followed by fast food, this indicates the evident impact on inflation in Pakistan up on peoples spending habits, more people now opt for home made food rather than fast food from upscale restaurantsWhat type of drinks do you consume? mass of respondents indicated that they preferred carbonated drinks as compared to coffee and other choices available to them, this shows the high positive demand soft drinks have in Pakistan.Pick one from the above and state the brands you use?Juices brands mentioned by respondentsIn order to gauge the respondents inclination towards succuss the question asked them to indicate the juice brand they use, majority of respondents indicated nestle as being their favorite brand, with 23 respondents opting for Nestle, followed by Olfruit.Carbonated drinks mentioned by respondentsTea/Coffee mentioned by respondentsHow much do you consume the drink you utter above?Your purchase decisions are influenced by?Q7 Do you consume carbonated soft drinks?Majority of respondents, i.e. 40 indicated that they consumed carbonated soft drinks which points towards the high positive demand for soft drinksQ8 If yes, then how often do you consume them? (If no, please skip to question 9)Majority of the respondents who did consume soft drinks as mentioned in the previous question stated that they preferred soft drinks on a daily basis, followed by ten respondents who consumed it more than once a week.Q9 How do you feel about the by-line statements in relation to carbonated soft drinks?a) Carbonated soft drinks are rolefulMajority of respondents were neutral regarding the question that whether they thought of carbonated drinks as healthy, followed by an equal majority of respondents who strongly agreed that carbonated drinks were healthy (10) and somewhat agreed that carbonated drinks were healthy (10)b) Cheaper elections of some leading companies offer same qualityRespondents strongly agreed that some cheaper alternatives available in the market of top brands offer the same qualityc) Price is an important factor to youMajority if the respondents agreed that price as an important factor that they considered, this again points towards the fact that inflation is an issue affecting the purchasing power of consumers in Pakistan.d) I would purchase a cheaper alternative if it offers similar qualityMajority of respondents stated that they strongly agreed that they would purchase a cheaper alternative if it offers similar quality as top brands.Q10 Please rank the Cola of your preferenceMajority of respondents stated that among the low priced alternate colas they preferred the Gourmet cola, followed by Amrat cola.b) I have stopped purchasing other brands wholeMajority of respondents somewhat disagreed to the statement that whether they had stopped purchasing other colas all in all after opting for gourmet cola.GenderAge GroupMarital conditionEducation LevelsSummaryThe focus questionnaire analysis points to the fact that majority of the target population that we selected for our product consumes carbonated soft drinks which supports the growth trends in the soft drink industry. The findings also shed light on the fact that due to the recent upsurge in inflation in the country and the price hike in case of to the highest degree all commodities, consumers are now much more receptive towards other brands which offer cheaper colas with the similar taste, these cheaper alternatives fit in the respondents including, Shandy cola, Makkah cola, Amrat cola and Gourmet cola. Respondents however stressed on the fact that these alternatives appealed to them not only because of the price but also because of the fact that they offered almost the same quality as colas from other top brands like Coke and Pepsi. Out of the cheaper alternatives people indicated that they preferred Gourmet cola more. The findings also pointed to the fact that the main influences in decision regarding the choice of soft drink came from family and friends, as these were the two main social groups with which respondents spent most of their time and consumed drinks with. The respondents brought to watchfulness the fact the advertising campaign of the cola companies like gourmet cola and amrat cola were not up to the mark and very rare, they suggested that a better as campaign would be able to boost awareness and quotation amongst potential customers and attract more customers to the relatively new cola.