This document provides an agenda for analyzing factors affecting consumer behavior in the soft drink industry. It will study consumer preferences and consumption patterns. The objectives are to analyze industry trends, identify factors considered during purchases, and investigate how price, taste, flavor, health, and packaging impact willingness to buy. A literature review covered marketing techniques, key players, and influences on behavior. Hypotheses were formed regarding important purchase factors. Research methodology will employ surveys, expert interviews, and statistical analysis. Key findings will provide implications for soft drink companies.
1. ANALYSIS OF SOFT DRINK INDUSTRY
AND THE FACTORS AFFECTING
CONSUMER BEHAVIOUR
Group 11
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2. Agenda
Introduction.
Research objectives.
Summary of literature review.
Research framework.
Hypothesis.
Research methodology.
Data analysis & Interpretation.
Key findings & Conclusion.
Managerial Implications.
Limitations & Future scope.
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3. Introduction
Definition of soft beverage.
In 2018, the global beverages industry is
forecasted to have a volume of 994.1 billion litres,
an increase of 25.1% since 2013.
Shift from matured to emerging markets.
Soft drinks is the largest segment of the global
beverages industry, accounting for 34.4% of the
industry's total value.
Carbonates is the largest segment of the soft
drinks market in Singapore, accounting for 55.8%
of the market's total value.
Key Player: Coca Cola, F&N.
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Coca-
Cola
23%
Pepsi Co.
20%
Groupe
Danone
6%
Fraser &
Neave
Ltd
12%
Malaysia
Diary
Industry
Pte Ltd
7%
Others
32%
Market Share
Source: Euromonitor International, Soft Drink Industry
4. Research Objectives
To study the soft drink industry and analyze the changing trends in it.
To investigate customers’ preferences and the consumption pattern of
the individuals.
To identify factors considered by current buyers before deciding to
purchase any soft drink.
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5. Summary of literature review
4 Ps of marketing techniques.
Key Players.
Factors affecting Consumer Behaviour.
Value, Variety, Occasion and Experience.
Impact of Neuromarketing on Consumer behaviour.
Buying process model.
Health impacts of carbonated drinks.
Marketing Techniques- Coca Cola
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6. Research Framework
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TV/Magazine/Radio,
Social Media, Peer
View, Hoardings,
Packaging & Size
Fizz level, Sweetness,
Colour, Innovation,
Brand, Health
Options
Purchasing Power,
Cost of the product
Availability at retail
outlets, Public
Places, Vending
Machines, Location
PRODUCT
PROMOTION
PRICE
PLACE
WILLINGNESS
TO
PURCHASE
7. Hypothesis
H0: The most important factors affecting the willingness to buy soft drink
are Price and Taste.
H1: The most important factors affecting the willingness to buy the soft
drink are Flavour, Health and Packaging style.
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8. Research Methodology
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Development of
Proposal
Research Objective
Secondry Research
(Litrature Review)
Study of consumer behaviour
(Secondary)
Qualitative and Qualitative
analysis of industry and
consumer behaviour
Data Collection (Primary)
Analysis of data
Interpretation of findings
Conclusion
Surveys &
Questionnaire
Industry Expert
opinions
Research Methodology and
Framework
Modal Validation
9. Data analysis and Interpretation
Chi Test Analysis
Regression Analysis
PESTLE analysis
BCG Matrix
SWOT Analysis
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11. Frequency Analysis
T- Test Analysis
All the Factors are Significant
Price : Price of the soft drink has a negative correlation on demand.
Product: Health and Flavor is the most important reason in choosing a product.
Promotion: Packaging style is also an important factor.
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Factor T Stat Value T- Critical
Price 9.896905832 2.262157163
Product 9.593371916 2.262157163
Promotion 6.702500324 2.262157163
12. Regression Analysis
Regression Analysis revealed that
• Price of Soft Drink
• Flavour of Soft Drink
• Health factor of the of Soft Drink
• Packaging of Soft Drink
are significantly important in influencing the willingness to purchase Soft Drink.
P-Values
Packaging 0.00019
Flavour 0.02743
Health factor 0.000045
Price 0.00116
Cut off value for P-Value: 0.05
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13. Key Findings and Conclusion
Disposable Income
Major Factor Affecting the Consumer
behaviour:
Income
Variety
Packaging
Health Factor
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Disposable
Income
Variety of
soft drinks
Regional
brands
Packaging,
Flavour &
Healthy
choices
14. Managerial Implications
• Through our researches we found out that juice based drinks are gaining preference over carbonated drinks. Thus Coca
Cola should launch more products like Minute maid to cater for such health conscious customers.
• Powerade ION4 is an isotonic drink specially launched for athletes which replenishes ions loss like sodium, magnesium,
potassium and calcium which occurs due to high strenuous activities. Extensive marketing and promotion techniques must
be implemented so as to increase the awareness of such products in people.
• New products like Aquarius which serves as both mineral water and energy drink has a huge potential to grow as it serves
as a dual folded purpose of hydrating as well as providing one with important minerals, nutrients and electrolytes. Such
products should be extensively promoted and sales should be boosted.
• Extensive R&D must be done to check the feasibility of the market scenario and how to increase the market dominance of
Coca Cola and its line of products.
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15. Limitations of study & Future Scope
The research would be conducted in a very limited time. A few weeks may not be enough to do a
deep analysis and find answers to all the research questions in the most accurate manner.
The accuracy of the responses would be questionable. Their answers/choices may be biased or vary as
per the time, mood or location.
The industry contact could not be contacted due to paucity of time.
The sample size of the survey would be too small to represent the general perception of the customer
base.
FUTURE SCOPE
Study of modern marketing techniques and effect on consumer behaviour.
Follow the changing business strategies by the market leaders of soft drink industry.
Highlighting functionality of the soft drinks.
More extensive research must be conducted on factors like – Taste, Sweetness, Fizz etc. so that suitable
changes be made to capture the market.
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16. References
Camacho, L. (2008). Market Research Databases: Comparison of Mintel Reports
Academic,
Market Line Business Information Center, and Global Market Information
Database. Journal of Business & Finance Librarianship, 13(2), 157-161.
Euromonitor International. (2014, January). http://www.euromonitor.com/soft-
drinks-in-singapore/report Retrieved from Euromonitor Passport GMID
database.
Jee Woong J. Choi, Earl S. Ford, Xiang Gao3 and Hyon K. Choi. Sugar-sweetened
soft drinks, diet soft drinks, and serum uric acid level: The third national health
and nutrition examination survey.
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17. Key Milestone and Timeline
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13-Jan 2-Feb 22-Feb 14-Mar 3-Apr 23-Apr 13-May
Start of project/Conceptulize Research topic
Submit SOP
Statement of Purpose (SOP)
Select Relevant Data Research material
Draft Proposal Preparation
Finalize proposal and Proposal Submission
Draft Evaluation By Mentor
Research in primary and secondry sources of Data
Field Visits and Internal reviews
Mid Term Review Preparation
Mid Term Review
Field research conclusion and finalizing report
Final CRP presentation
Final Submission