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Assignment onFactor influencing consumers buying pattern towards
soft drinks in Bangladesh: A study on COCA-COLA
Marketing management (mkt 201)
Submitted toMahmud Zubayer
Assistant professor
Department of Business Administration
Submited by:
Name: ID:
Biplab kar 2010-2-10-228
Tanmoy Basak 2013-1-10-064
Amit Dey 2013-1-10-074
Md. Rakik Ur Reza 2013-1-13-081
Submission date: 20th July 2014.
Table of Content
Introduction, 05
Objective of the study 05Methodology 05-06Strengths & weakness of the brand from image perspective 06-07SWOT analysis 08-09Factor influencing consumers buying pattern 09-11Marketing Mix 11-14Data analysis and interpretation 14-17Recommendation 18-20Conclusion 20Source 21
Acknowledgement
First of all, we would like to thank our lecturer Mr.Mahmud Zubayer; we are grateful to him
for his cooperation in preparing this report. His proper guidance & helpful attitude help us to
make this report.
We like to give thanks especially to our friends and many individuals for their enthusiastic
encouragement and helps during preparation of this report.
Last but not the least, we are proud and feeling lucky enough to have such nice members in
our group. We have a strong bonding of understanding which has made our effort successful
and remarkable.
Executive Summary
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines
throughout the world. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is
often referred to simply as Coke (a registered trademark of The Coca-Cola Company in the
United States since March 27, 1944). Originally intended as a patent medicine when it was
invented in the late 19th century by John Pemberton, Coca-Cola was bought out by
businessman As a Griggs Candler, whose marketing tactics led Coke to its dominance of the
world soft-drink market throughout the 20th century.. This marketing research paper aims at
exploring the factors used in selecting the default consumer of Coca-cola. A survey was
conducted among the different aged and professional people who drink Coca-cola. Such as
college students, university students, and others. A total of 54 respondents were interviewed.
In analyzing data, descriptive statistics were used. To identify the factors related to the
selection of different consumers, factors analysis was conducted. Coca-cola targets young
generation, additional youth consumers enter the market every year, which provides adequate
consumer base. For these decades, changing societal concerns, attitudes, and lifestyles become
important trends that force the soft drink industry’s business environment to change. As it
targets the young generation try to satisfy the customers by improving its products.
Introduction
1.1 Background of the study
Coca cola is the oldest brand in Bangladesh. From the last 50 year Coca cola has been
marketing its products through local representatives of Bangladesh. However, now it is
marketed by Abdul Monem Limited it marketed coca cola under the authority of the Coca-
Cola Company, USA (trademark owner). Abdul Monem Limited is the distributor of Coca-
Cola, Sprite and Fanta in Bangladesh. Soft drinks brand Coca Cola last year announced plans
to start its own sales and distribution operations in Bangladesh.
1.2 Scope of the study
This report is written based upon the soft drink industry COKE. But basically and more
specifically it is based upon coca-cola. From this, we studied on customer satisfaction towards
coca-cola. Through the survey we just try to find out the attitude towards coca-cola in the
soft drink industry of Bangladesh
Objectives of the study
Primary objective
The broad objective of the study is to measure the customer’s satisfaction towards Coca-cola.
Secondary objective
A. Measure the level of customer satisfaction with the different kind of soft drink and Coca-cola.
B. Find out customer choice pattern.C. Customer desire and satisfaction level.D. To find out the customer preference for this brand
Methodology of the study
The present study is to measure the customer satisfaction level towards Coca-cola. This study
examines the satisfaction level to a variety of factors.
Sources of data
This study is based on both primary and secondary data.
Primary data: Structured questionnaire has been used to get data to understand customer’s attitudes & behavior towards soft drinks on Coca-cola. The respondents were chosen randomly in respect of different soft drinks they prefer to use.
Secondary data: To collect information we search internet, read news paper, and utilize personal observations.
Limitation
The study caused some difficulty. During the survey our surveyors faces some constrains. The
limitations are:
1. Lack of practical knowledge of both interviewer and customers (respondents).
2. Lack of understanding between customers and interviewers.
3. Customer’s unwillingness to response.
4. Convenience costs.
5. No previous research report was available on Coca-cola and that was the limitation on
our literature review.
6. Lack of sufficient time
Strengths & Weakness Of The Brand From An Image Perspective
Strength
Coca-cola main competitor is Pepsi they know systems, networks, connectivity, programming
and also data management. Youth and vitality is the main idea that the Pepsi brand tries to
express, and the bottle design helps the brand associate with young. Pepsi restyles its cans with
a series of 35 new designs. On Pepsi website, each theme has its own video clips which can be
downloaded for free and other features to attract consumers with the purpose of representing
the fun, optimistic and youthful spirit “of Pepsi. Pepsi also use music. There direct sales force
maintains relationship customers one by one.
Weakness
Pepsi is now sold in more than 160 countries around the globe, but it still has a weakness in
the international beverage market because it entered later into this arena than Coke. Pepsi has
tried to enter this market by trying to do in three years what took Coke 50 years to do.
Nevertheless, Pepsi has to spend years “to mature simply due to Coke’s dominance in the
international market and the strong ties that Coke has developed with these markets and their
governments.” when marketing its products, Pepsi utilize celebrity endorsement mostly which
bored some consumers due to lack of novelty. Conversely, the success of fresh and creative
advertise has consistently helped Coco-Cola attract and retain customers.
Market share
Being the biggest company in the soft drink industry, Coca Cola enjoys the largest market
share. This company controls about 59% of the world market.
Market Share By Area
Coca Cola is the world-renowned soft drink and the company is currently operating
throughout the world. The world wide total is about 17.8 billion.
The operation review according to the segments is as follows.
Operation Review
(2002 worldwide unit case volume by operating segment)
NORTH
AMERICA
LATIN
AMERICA
EUROPE &
MIDDLE EAST
ASIA AFRICA
30% 25% 22% 17% 6%
SWOT Matrix
Strengths
1. International brand image of Coca Cola
2. Technical expertise and R&D provided by international authority of Coca Cola
3. Nationwide distributorship driven by highly motivated workforce
4. Value chain integration through the efficient use of the other business entities of the group, such as the products of IGLOO Sugar is used as a base ingredient in Coca Cola.
Weakness
1. Over dependency on the international Coca Cola authority.
2. No room for crafting brand level strategies concerning the beverage Coca Cola
Opportunities
1. At present, AML only bottles and distributes only three brands of beverages – Coca Cola, Sprite and Fanta. It is always possible to introduce other world famous Coca Cola brands like Bislery (Drinking Water), Maaza (Mango Drink) and others.
2. AML currently can distribute its beverages only in Chittagong, Khulna, Sylhet and Barishal Division. The acquisition of the distributorship of the whole Bangladesh will be a great opportunity for AML.
Threats
1. The ever rising number of new entrants in the business.
2. Narrow band of beverage product line compared to the competitors.
3. Dominance of substitute beverage products like fruit juice.
Factor influencing consumers buying pattern
Definition of Buying Behaviour:
Buying Behaviour is the decision processes and acts of people involved in buying and using
products. Consumer Buying Behaviour refers to the buying behaviour of the ultimate
consumer.
These factors cause consumers to develop product and brand preferences. Although many of
these factors cannot be directly controlled by marketers, understanding of their impact is
essential as marketing mix strategies can be developed to appeal to the preferences of the
target market
A consumer’s buyer behaviour is influenced by four major factors:
1) Cultural,
2) Social
3) Personal
4) Psychological.
Consumer’s buyer behaviour and the resulting purchase decision are strongly influenced by
cultural, social, personal and psychological characteristics. An understanding of the influence
of these factors is essential for marketers in order to develop suitable marketing mixes to
appeal to the target customer.
CULTURAL: factors include a consumer’s culture, subculture and social class. These factors
are often inherent in our values and decision processes.
SOCIAL: factors include groups (reference groups, aspirational groups and member groups),
family, roles and status. This explains the outside influences of others on our purchase
decisions either directly or indirectly.
PERSONAL: factors include such variables as age and lifecycle stage, occupation, economic
circumstances, lifestyle (activities, interests, opinions and demographics), personality and self
concept. These may explain why our preferences often change as our `situation' changes.
PSCHOLOGICAL: factors affecting our purchase decision include motivation (Maslow's
hierarchy of needs), perception, learning, beliefs and attitudes.
Buying decision process:When purchasing any product, a consumer goes through a
decision process. This process consists of up to five stages:
- Stage 1: problem recognition,
- Stage 2: information search,
- Stage 3: evaluation of alternatives,
- Stage 4: purchase decision
- Stage 5: post purchase behaviour.
The length of this decision process will vary. A consumer may not act in isolation in the
purchase, but rather may be influenced by any of several people in various roles. The number
of people involved in the buying decision increases with the level of involvement and
complexity of the buying decision behaviour.
Figure 1: Soft Drinks purchaser decision-making process and major influence factors
Reference Group: NewestFate
Price AvailabilityPropositionInfluences Flavor
Post-purchaseNeed Recognitio Information Searc Alternative Decision MakingEvaluation Behavior
Inter Persona
Influence
Marketing Mix of Coca-Cola in Bangladesh
Coca-Cola has a competitive marketing mix like other soft drinks beverages has in
Bangladesh. This marketing mix is listed below:
Product
Coca-cola selected product is Coca-Cola have different sizes. They have now bottle as well pet
bottle. Coca-Cola also has 600 and 1000 ml pet bottles. In addition, they also have 1.5 And
1.25 liter of pet bottle and in the recent past they introduced into the market 2 liter pet bottle. It
has also 250ml of can Coca-Cola.
What in Coca-Cola
Carbonated Water ,High Fructose Corn Syrup ,Caramel Color ,Phosphoric Acid ,Natural
Flavors, Caffeine
Price
Abdul Momen Limited always tries to keep a standard price of Coca Cola bottles it also offers
promotional discounts, allowances, credit terms and payment period for the stores and
Restaurants. Coca Cola, furthermore, offers discounts in a family size bottle frequently.
The retail price of the beverage products are given below:
Product Item Quantity per pack Price
Coca-Cola
400 ml
600 ml
1000 ml.
1250 ml
2000 ml
20tk
32.00 Tk
55.00 Tk
60.00 Tk
90.00 Tk
Pepsi
600 ml
1000 ml.
12500 ml.
2000ml.
32.00 Tk
55.00 Tk
60.00 Tk
95.00 Tk
Place
Distribution Channel:
Figure: Distribution Channel
The company will establish an extensive distribution channel for all brand of coca-cola
company to make it available throughout the country. It will build six distribution centers
(Agent) in the seven divisions of Bangladesh: Dhaka, Chittagong, Sylhet, Rajshahi, Khulna,
and Barishal and Rangpur From these distribution centers, they will supply the coca-cola &
other brands to different districts dealers. From dealers, the sales representatives will supply
retail shops (small and mega) on the basis of their demand. The small traders will purchase
Coca-Cola directly from the dealers.
Promotion
Promotion means activities that communicate the merits of the product and persuade target
customers to buy it. According to Coca-Cola promotion is one of the major tools of marketing.
A good way of promoting a product not only helps to influence and motivate people to buy it
but also give a good impression about a company and it products.
Sales Promotion
Manufactue Agent Dealers Retailer
Consumer
Sales promotion includes marketing activities-other than personal selling, advertising, and
public relations- that stimulates consumers, trade and dealer effectiveness. Sales promotion
can be aimed at end consumers, trade customers, or company’s employees. Coca-Cola offers
all of these sales promotions every year for various purposes. Coca-Cola s sales promotion
tools include free samples.
Sales promotion is generally a short run tool used to stimulate immediate increase in demand.
Frequently Coca-Cola uses sales promotion to improve the effectiveness of their promotion
mix ingredients, especially advertising. Research shows that sales promotion complements
advertising by yielding faster sales responses.
CSR program
In 22 March 2012, volunteer for Bangladesh, the volunteer wing of JAAGO Foundation
stepped in to clean up the Banani Lake in its annual World Water Day campaign. This year the
challenge lasted for three days and two nights, and was sponsored by Coca-Cola Bangladesh
and Robi Axiata Limited. This year the challenge lasted for three days and two nights, and was
sponsored by Coca-Cola Bangladesh and Robi Axiata Limited. One participating team was
selected from 11 districts across Bangladesh, namely Barisal, Chittagong, Dhaka, Feni,
Gazipur, Jhalukathi, Khulna, Narayanganj, Rajshahi, Rangpur and Sylhet.
Data Analysis and Interpretation
For this part of the report, we conduct a survey on the soft Drinks consumers who lived in
Dhaka. The Questions are divided into four sections for an effective analysis; one is
concerning about Quality, Flavor and Taste, second one is about Brand, and third one is
about Price and last one is about Product Availability. After finishing the survey, we found the
following findings:
1. Gender
Findings: from the table it is seen that out of 54
respondents, 79.6% male and 20.4% female. So it can be said that the user ratio of male is
greater than female user ratio.
2. Age range?
Findings: the most soft drink consumer age range is 20-25 years. These age ranges consume at least 59.3% soft drinks.
Sex
Frequency Percent Valid Percent
Cumulative
Percent
Valid Male 43 79.6 79.6 79.6
Female 11 20.4 20.4 100.0
Total 54 100.0 100.0
Age
Frequency Percent Valid Percent
Cumulative
Percent
Valid 15-20years 17 31.5 31.5 31.5
20-25years 32 59.3 59.3 90.7
25-30years 5 9.3 9.3 100.0
Total 54 100.0 100.0
3. Which soft drink
Frequency Percent Valid Percent Cumulative Percent
Valid 7up 12 22.2 22.2 22.2
Mojo 4 7.4 7.4 29.6
Mountain dew 13 24.1 24.1 53.7
Coca-cola 21 38.9 38.9 92.6
Pepsi 4 7.4 7.4 100.0
Total 54 100.0 100.0
Findings: from the table we get the information that people drink coca-cola 38.9%. This table shows the high position of mountain dew.
[Fig:1] Most of all soft drinks in Bangladesh is good according to the quality and taste
34% Strongly Disagree
14% Disagree
23% Neutral
17% Agree
14% Strongly Agree
From the fig: 1 it’s found that
people do not satisfy about the
taste of the soft drinks. Which is a
34% person do not satisfy about
the quality and taste. And only
average people can agree in this
question.
From the fig: 2 it’s found that
people are satisfy about the
taste of coca-cola. Which is a
26% person agree and
strongly agree.
And only few portion people
do not like the coca-cola
[Fig:2]coca-cola is the best drink of all other dinks
7% Strongly Disagree
23% Disagree
17% Neutral
26% Agree
26% Strongly Agree
So, from the above information it is clear that most of the consumers are here to think
positive about Coca-cola and they think the others most of the soft drinks tastes are not
in the satisfactory level. People are happy about the quality taste and flavor of the Coca-
cola.
Fig: 3 shows people are
happy about the coca-
cola branding which is
34% strongly agree,
16% agree and 26%
don’t know about it.
And very few amount
of people they disagree.
So it’s positive feedback
from consumer about
[Fig:3] The branding of coca-cola is best among all other soft drinks.
40
35
30
25
20
15
10
5
07% Strongly 18% 26% Neutral 16% Agree 34%
Disagree Disagree StronglyAgree
[Fig: 4] The brand coca-cola can fulfill my most of the expectation
40
30
20
10
017% 10% 4% 30% 40%
Strongly Disagree Neutral Agree StronglyDisagree Agree
Fig: 4 shows above
average, people are happy
about the coca-cola brand.
And very few amounts of
people think coca-cola
cannot fulfill their
expectation.
But in overall it’s a
positive reaction of people
about the coca-cola brand.
So, from the above information it is positive that most of the consumers think coca-cola is the
best brand above all the others soft drink brands. And they also think that is brand can fulfill
what they really want from a clear soft drink.
[Fig: 5] I like to have it whenever I have food and snacks.
60
50
40
30
20
10
04% 20% 26% 14% 57%
Strongly Disagree Neutral Agree StronglyDisagree Agree
Fig: 5 shows people like to
have coca-cola when they
take food/snacks. More
than half portions of people
strongly agree with it which
is 57% and 14% agreed
with it. Small percent of
people keeps neutral and
disagree.
Fig: 6 shows, 34%
people remain neutral of
having coca-cola as in
alternative of water. But
here most people
disagree. But very small
percent agrees.
[Fig: 6] I drink coca-cola as an alternative of water.
35
30
25
20
15
10
5
026% 26% 34% 10% 4%
Strongly Disagree Neutral Agree StronglyDisagree Agree
Fig: 7 show about 37%
people find coca-cola
everywhere. And 14%
strongly agree with this.
But almost 26% and 10%
disagree and 34% remain
neutral which is huge.
[fig: 7] I can find coca-cola in all the retail store / shops
14% Strongly Agree
37% Agree
34% Neutral
26% Disagree
10% Strongly Disagree
0 20 40
From the above information, it is state that coca-cola is found almost everywhere in the
market, and people like to have it when they take food or snacks. But they do not take coca-
cola as an alternative of water.
[Fig: 8] This carbonated soft drink (coca-cola) is expensive.
10% Strongly Disagree
4% Disagree
67% Neutral
17% Agree
4% Strongly Agree
From the above chart, we found most of the people remain neutral about the price of the coca-cola.
But about 17% people think it’s expensive on the basis of large quantity. And 10% people strongly disagree that coca-cola is not expensive
Recommendation
A few things that can be done to make the retailing more efficient, applied into comes
to sales incentives systems it can be beneficial:
Simplicity:
Do not make incentives for the individual shops to sell or track. It is de-motivating to
have to puzzle over incentive systems, and salespeople will simply not bother to
decipher complex rules.
Publicity:
Psychologically, a reward becomes more excitement when it is within reach.
Publicize gift for consumer by advertisement and conversations so that salespeople
and consumer know not only that these are exist but also that they are attainable.
The Big Picture:
Remember that consumer programs aren't the end-all of sales management. Sales
motivation is holistic, encompassing proper recruitment, training and direction as well
as incentives. Motivation comes not simply from the lure of tangible rewards but from
being treated well. Paying attention to the whole process is the best thing you can do
for salespeople. So the salespeople will happy to get the coca-cola on their shop. So it
increases the availability of product.
Advertise More –
Just when you may think it's time to cut back the marketing dollars, it should probably
be advertising more. It is wise to increase marketing efforts during slower sales periods
because there is more competition and fewer consumer dollars. Consider newspaper
ads, magazines, specialty publications and other forms of marketing.
Generate a Buzz –
Whenever anything noteworthy happens within the business, send a press release to
the media. The idea is to grab any free coverage possible. Get involved with
community events. Consider hosting classes, meetings or other networking events in
the retail store. Use a unique promotional event to generate a buzz about on the
business.
Examine Your Pricing Strategy –
When purchasing and pricing products, be sure it is considered the cost of goods and
that the retail outlets is able to make a profit at that price point. The product price
should be competitive, but still profitable. Ultimately, the right price is the price the
customer is willing to pay for the product.
Connect With the Customer –
Excellent customer service is the key to increasing sales. Listen to the customer to
understand their needs and wants. Then educate him/her about the products. Finally,
offer value-added services and products. Create a mailing list by asking for contact
information from each customer.
CONCLUSION
Coca-Cola no doubt come the heart beat of Bangladesh. Coca-Cola is one of the leaders in
sponsoring the most important, thrilling events. E.g. Cricket matches, concerts and many other
social occasions. Coca-cola will definitely try harder to fulfill their plan to increase sales and
get more profit. With advertising campaigns, marketing strategies, promotional strategies and
price strategies, Coca-Cola has come up with an effective and efficient budget planning to
carry out the activities and Coca-Cola determines to achieve the objectives in terms of profit,
sales and market share.
Sources
Data collection
We used to methods to collect the data:
Secondary data: We have collected the data from catalog and brochure of the coca-cola
company. External data that we have collected from Internet are given on the net.
Primary data: Primary data are directly collected from the face-to-face interview. And also
these sources..
Reference Book Kotler, Philip., Keller, Kevin Lane., Koshy, Abraham & Jha,
Mithileshwar, Marketing Management, 13th edition,
Websites http:// Coca-cola.com/ www.wikipedia.com/ www.google.com
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