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Business Research Method

RESEARCH PROJECT

Topic
A comparative analysis of consumer preferences towards carbonated and non carbonated drinks in Faisalabad city

SUBMITTED TO

Dr.Abdul Ghafoor
GROUP MEMBERS: 1. Rabia Muneer 2. Maha Qasim 3. Maria Tubasum 4. Muhammad Zubair Tari 5. Falak Shair 6. Muhammad Azam Khan 7. Muhammad Rizwan Iqbal MBA (REGULAR) SECTION (H) Roll # 43 42 32 15 37 27 17

UNIVERSITY OF AGRICULTURE, FAISALABAD

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Acknowledgement
First and foremost, we are grateful to ALLAH ALMIGHTY, Most beneficent and the most merciful, who made us able to complete our given project successfully We would also like to pay tribute to the benefactor of humanity HOLY PROPHET (P.B.U.H.), who gave us complete knowledge on every aspect and field of life. In short of words, to express our modest gratitude and recognition to cuddly and loveable PARENTS, Who at each and every moment prays for our success. Our deepest thanks to Dr.Abdul Gafoor to Guide of the project and correcting various documents of us with attention and

care He has taken pain to go through the project and make necessary correction as and when needed We would also thank my Institution and our faculty members without whom this project would have been a distant reality. we also extend our heartfelt thanks to our families and well wishers.

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Dedication
We all dedicate this humble effort to our Parents there is no doubt because of their continuous efforts and support we cannot have be at this level

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Table of contents Serial #

1 2 3 4 5 6 7 8

Contents
Executive summary Introduction Review of literature Methodology Result and Findings Conclusion and Recommendations References Appendices

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List of Tables

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Table 4.1 (Preferences of male and female) Table 4.2 (data with respect to age) Table 4.3 (Influencing factors ) Table 4.4 (Behaviour for carbonated drinks) Table 4.5 (Average daily spending) Table 4.6 (Favourite brand for carbonated) Table 4.7 (Favourite brand for non-carbonated)

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List of Figures

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Figure 4.1 (Preferences of male and female) Figure 4.2 (data with respect to age) Figure 4.3 (Influencing factors ) Figure 4.4 (Average daily spending) Figure 4.5 (Favourite brand for carbonated) Figure 4.6 (Favourite brand for non-carbonated)

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Executive summary
We are the student of MBA conducting research for assignment purpose on the consumer preferences towards the carbonated and non-carbonated

drinks we have choose this topic because of ease of the finding respondent and have set our research objective that to see the consumer preference and the factors affecting the consumer preferences Because it is not the newly introduce phenomena and there is many researches which are related to this topic the previously conducted researches stated the different affect and the increase in the market globally in soft drink industry Because of the time limitation and the study purpose of research we have decided to take a sample of 50 respondents and these are taken on the basis of non-probability sampling technique and we have set the quota for the female of 40% of total respondent According to data collected the 62% respondent prefer carbonated

drinks on non-carbonated and the main factor for choice for any drink is the taste for the people of FSD city the popular brand for carbonated drink is coke and for non-carbonated drink is nestle Most of people prefer carbonated drink and taste, availability and brand name are the important factor to influence consumer the major

recommendation for the companies of soft drink industry to give attention on taste and the availability of the drinks

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Chapter N0: 1

Introduction

We are the student of MBA in university of agriculture Faisalabad Running in second semester and have a subject of business research method For that subject we are assigned a group assignment by our teacher Dr.Abdul Ghafor to conduct a research of self selected topic for only study purpose We are the seven members of the group and conducting research for our study purpose We have chosen the topic to analyze the customer preference to select the carbonated or non-carbonated drinks

1.1 Background of topic

The carbonated drinks are those which include the carbon dioxide in the drink there are number of companies which deal in these kinds of drinks some major companies are Cock &Pepsi and there are many small companies which also have little bit market share Non-carbonated drinks are those which does not include the CO2 these drinks include some Juices In the juice industry there are many companies like nestle and shezan and these drinks also include some traditional drinks like Jam-e-sherin or Sandal and also some drinks like Lasi or different kind of milk shakes

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1.2 Situation analysis

There are the number of the people in fact all the people who use some kind of soft drinks whether carbonated or non-carbonated and the numbered of brand name to influence consumer for purchase some of these brand names have been mentioned under this has a wide range of people thinking and choice level

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1.3 Research statement

The basic concept of the problem for the research is to research the consumer behaviour and the thinking of the consumer while selection of the soft drinks the basic statement of the research problem is A comparative analysis of consumer preferences towards

carbonated and non carbonated drinks in Faisalabad city

1.4 Reason for selecting this topic

The weather of the city of Faisalabad is very hot now a days and the demand for the soft drinks is maximum in these days There is the number of the people that uses the different kinds of soft drinks Many flavours and types of the soft drinks in this area but the major difference in the soft drinks in the carbonated and non-carbonated The consumer of the soft drinks easily available every were infect every person uses the some kind of soft drinks The major issue in the preference of the soft drinks is that the drinks is carbonated or not some people have a view that carbonated drinks are harmful for health and this is sacrificially prove think Carbonated beverages have been linked to diabetes, high blood pressure and kidney disease, according to the National Institutes of Health. Colas in particular contain phosphoric acid that might cause urinary changes that

promote kidney stones Colas may also be associated with low bone mineral

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density in older women.(jerry shaw, Are Carbonated Drinks Harmful? ,2010 published by livestong.com) More than 45 per cent of soft drinks, juices and bottled mineral water being sold in Faisalabad are adulterated and spurious( Asim Hussain www.dawn.com) There are many other factor by which we have the effect in the consumer while selecting soft drink like carbonated or non-carbonated There is too much talk about the consumer preference towards the carbonated and non-carbonated drinks and many research has work on it Because of the high knowledge of consumer the companies giving may 9 2009

attention to both carbonated and non-carbonated drinks and expand their business to both ways Because of all these factors we have decided to choose this topic for our research study assignment

1.5 Important Industry player

There are major carbonated drinks

manufacturing companies are coke, Pepsi, Gourmet other are companies which are market follower these are one of them maka cola, amrat cola, paradise cola etc. Some companies deal in the juices are nestle, Shezan, slice etc. There are some traditional soft drinks which normally sell as non branded and some drinks like Jam-e-shareen, sandal are produced by some companies like Qarshi and Hamdard.

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1.6 Objectives of study

Our research study on the soft drink basically revolves around the carbonated and n0n-carbonated aspect of the soft drinks Our objectives in the study is to find The preference of the consumer while selection the soft drinks is the carbonated or non-carbonated And to find the factor that affect the consumer behavior towards these drinks

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Chapter N0:2 Review of literature

Here we have quoted some research and some news of the other people that they have did related to soft drinks "Soft Drinks (Carbonated & Concentrated) Market Report" report to their offering. Concentrated and carbonated drinks, colloquially known as squash' and fizzy' drinks respectively, account for over two-thirds of the overall soft drinks market in terms of market value and volume. The carbonated soft drinks market is the larger of the two market sectors in the report owing to the dominance of cola in the overall market. Overall sales of carbonates and concentrates were worth 8.32bn in 2009, a rise from a total of 7.61bn in 2006. This increase in market value has been driven by an array of extremely well-established brands major companies that have ensured steady growth. Coca-Cola and Pepsi lead the market, both in terms of volume produced and market value. Their manufacturers, Coca-Cola Enterprises and Britvic respectively, also have a host of additional well-established brands such as Fanta, Sprite, Robinsons and Schweppes and therefore a strong hold on the market. However, a number of other companies, such as AG Barr, are also flourishing. One of the biggest challenges facing the industry is concern relating to public health. Some drinks are considered unhealthy because they contain high levels of sugar, flavorings and additives. Drinks manufacturers are combating concerns by offering consumers diet' or healthy' versions of existing brand

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names so far, this tactic seems to be succeeding as sales levels have remained high. The distribution channels for the industry are well established, and divided into the take-home and on-trade (bars, restaurants, etc.) markets. The on-trade market has historically been the most lucrative for the industry, but the take-home market has long been increasing in popularity; it could become the popular distribution channel in coming years. The future is features a wide array of challenges for soft drinks

manufacturers. It is important that they maintain levels of innovation, purvey a positive and healthy brand image, and offer unique and appealing packaging. In the period between 2011 and 2015, the market value of concentrated and carbonated soft drinks is forecasted to grow in value by 11.1% Companies Mentioned:

Coca-Cola Enterprises Ltd Britvic PLC AG Barr PLC Red Bull Company Ltd (DUBLIN)

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Global

Consumption

of

Soft

Drinks

Rising

5%

Year:

2003 Global Soft Drinks Report Press Release 12dec03 Soft drinks set to become world's leading beverage sector Global consumption of soft drinks is rising by 5% a year, well ahead of all other beverage categories, according to the new 2003 Global Soft Drinks Report from leading drinks consultancy Zenith International. Now challenging hot drinks to become the largest overall sector, soft drinks volume is projected to reach 467 billion litres in 2003, equivalent to 75 litres per person. "Economic and climate variations around the world present complications for all soft drinks companies, but many have succeeded at weathering the elements," commented Zenith Research Director Gary Roethenbaugh. "As a combined category, soft drinks offer a powerful growth proposition. The unrelenting advance of bottled water and still drinks, coupled with the scale of carbonates, help place soft drinks on track to become the number one beverage sector in 2005." Amongst the highlights from the Zenith report: Carbonates are the largest soft drinks segment, with a 2002 share of 42%. Bottled water is catching up fast at 32%. Still drinks form the third segment on 11%, followed by fruit juice/nectars on 8% and dilutables on 7%. Bottled water is the fastest growing soft drink, up by 9% in 2002. The United States is the worlds biggest soft drinks market by a substantial margin, with a 24% global share in 2002. Three countries the United States, Mexico and China are leaders in the two most important segments, carbonates and bottled water.
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The top five fastest growing countries over the past five years to 2002 were exclusively from the emerging regions of Asia, East Europe and the Middle East. The highest growth was achieved by Pakistan, with volume up by 146% since 1997. By 2007 Asia and Australasia is forecast to become the front runner with a 25% share, outpacing North America on 24%. Zenith predicts that 90 billion litres will be added to global soft drinks consumption by 2007. This represents continuing annual growth of 4-5%. "Asian growth is expected to lead the way at 7-9% a year. The huge populations, increasing affluence and underdeveloped soft drinks markets of China and India present massive opportunities. Strong growth is also anticipated in a number of countries across East Europe, the Middle East and Africa," concluded Gary Roethenbaugh. The 2003 Zenith Report on Global Soft Drinks provides 1997-2007 figures for bottled water, carbonates, dilutables, fruit juice/nectars and still drinks across 80 countries or country groupings. The report includes a 12 month subscription to the soft drinks database on www.globaldrinks.com. Contact Zenith International on tel +44 (0)1225 327900, fax +44 (0)1225 327901 or email info@zenithinternational.com For further information, please contact: Gary Roethenbaugh or Paul Tarling, Zenith International Ltd 7 Kingsmead Square, Bath BA1 2AB, United Kingdom t +44 (0)1225 327900 f +44 (0)1225 327901 zenithinternational.com (anonymous)

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Chapter N0: 3 Methodologies

We have divided our methodology in the basic two parts

3.1 Sampling design

The customer of the carbonated and non-carbonated drinks is in hundreds of thousands in the Faisalabad city. We have chosen the non-probability sampling technique for collecting data because our research study only for the study purpose and not for some critical decision so that we have chosen this method Further we have set the purposive technique the non probability sample that conforms to certain criteria is called purposive sample (D.cooper and P.S.Schindler 2010) In that we have selected the quota for the female as the women has 50% population of FSD so that we have set the quota of 35% for the females

3.2 Instrument design

The communication approach for our questionnaire We have some three types of questions in the questionnaire Some open ended and some close ended and have put some dichotomous questions as well as some multiple choice study is the

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3.3 The major limitation

There are always some limitations of research work we also have some limitation because of that we could not deliver our report in best of manner There is the shortage of time for us because the time for this research project is approximately 15 days and to conduct a research and make a large report is very difficult that is why we have decided to take sample of only 50 respondents There is also the burden of the exams on us and we want to conclude this project as soon as possible so that the methodology have been chosen in the view that it will take less time to select sample and collect data As we are the student of MBA and conducting this kind of study first time in our life so there is the lack of experience and the technical knowledge about how to conduct the research

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Chapter No: 4 Results and Findings

The first we have mentioned the preference of the sample respond anted which shows the more attraction towards the carbonated drinks and if we study it in the view of gender than there is the mix choice level of male and female towards the these are shown in table as well as in histogram

carbonated Female Male total 11 20 31

noncarbonated 9 10 19

total 20 30 50

Table 4.1

Here is the graphical representation of the same data

35 30 25 20

Female Male

15 10 5 0 Carbonated Non-carbonated

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Figure 4.1 Our next concern with the age of the people and the data under mention shows the some affect of the age on the sample to that have effect or not

Age (years) Carbonated Below-21 21-25 26-above Total 7 22 2 31

Non-carbonated total 3 10 6 19 10 32 8 50

Table 4.2 This data clearly shows that the people of the age of between 21 to 25 have attraction towards the carbonated drinks and the sample respondent of age 26 or above have tendency to prefer the non-carbonated drinks

22 30 20 10 0 carbonated Non-carbonated 7 3 2 10 6

below 21

21 - 25

26 and above

Figure 4.2

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The most important thing of our research study is to determine the important factors that influence the people of Faisalabad while selection of the any drink under the table show the frequency of these factors

Factors Taste Availability Cost Brand name Advertisement Other total

Frequency 40 9 18 21 3 9 100
Table 4.3

Percentages 40% 9% 18% 21% 3% 9% 100%

The taste is the most prominent factor that effect the choice and has very large amount of effectiveness and in the 2nd number the brand name is important

Advertisment 3% Brand name 21%

Other 9%

Frequency
Taste 40%

Cost 18%

Availability 9%

Figure 4.3
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One of the aspect of our questionnaire is to see the view of the people about the harmfulness of the carbonated drink and the avoidance because of this reality of the people because if a person avoiding the carbonated drink in this view you cannot make him agree to purchase the carbonated drinks We have total 50 respondent and 44 of them give answer that

carbonated drinks are harmful 10 of them totally avoid that kind of drink, 25 avoid but some time and 9 of them does not avoid carbonated drinks These figure shows in table

Behaviour drinks Avoid

for

carbonated Frequency

10 25 9 44

Sometime avoid Never avoid Total

Table 4.4

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Here is the average daily spending of our sample in Rs: shows in table

Classes Less than 30 30 50 50 100 Above 100 total

Frequency 18 17 10 5 50
Table 4.5

The median value of the average daily spending is the 38 approximately Which has found by applying this Formula

=l+ h/f (n/2-c)

No. fo people
18 16 14 12 10 8 6 4 2 0 less than 30 30-50 50 - 100 Above 100

No. fo people

Figure 4.4
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Here at the end there is some commonly know brand names and the flavours as in our early discussion in the major industry palyer we have mentioned that in the carbonated drinks Coke, Pepsi and the gorment cola are the major share holder of industry In the non-carbonated drinks the nestle and the shezan are the major one Following table show the liking of our respondent for this brand name We have ask the question for favourite brand name following are the result shows in table

Carbonated drinks brand Coke Pepsi Gorment Other total

No. of people like this brand 28 17 4 1 50

Table 4.6

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This table shows the tendency of the consumer for the brand name dealing in non-carbonated drink and nestle is well know brand among others

Non-carbonated drinks Nestle Shezan Other Total

No. of people

24 12 14 50

Table 4.7

gormet 8% pepsi 34%

people

other 2%

other 28%

people
nestle 48% shezan 24%

coke 56%

Figure 4.5 Favourite brand for carbonated drinks

Figure 4.6 Favourite brand for Non-carbonated drinks

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Chapter No: 5 Conclusion and Recommendations

5.1 Conclusion
The conclusion of our study is consist on some points which are as under The preference of the people of Faisalabad more toward the carbonated drinks rather than the non-carbonated drinks as the 62% or our sample respondent have tendency to choose the carbonated drinks to remove their thirst Age factor also have the major effect on the choice as the result of our reflect that the people of comparatively high age like to drinks the non carbonated drink The other factors which are in the control of the marketer and the marketer can enhance and remove the factors The major factor which has the effect of the choice of the people is the taste the most of the people want to have the best taste or buy the drink which they have already tested and has better view about that product The brand name and the availability also affect the choice of the costumer the brand and the availability have equal affect on the people of Faisalabad The sample we have selected tells us that the one person spend daily 38 rupees approximately for the consumption of the soft drinks

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The company which is the more liked by our sample respondent for the carbonated drinks is the coke And the most prominent company in the non-carbonated drink is the nestle which has 48% market shares and at the 2nd number the Shezan is the important one

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5.2 Recommendations
Our research study is not based on any specific problem it is on the general phenomenon of the customer thinking for the drinks to full fill the thrust However we have some recommendation for the companies who are dealing in soft drinks and the organization who want to enter in this business To gain the market share the companies should give attention to the taste of the drink The companies should also make sure the availability of the their product not only to the big stores but also to the retail shops If a person wants to enter in the new business than the carbonated drinks industry is more attractive than the non-carbonated drinks industry

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References

(Shaw.J

Are

Carbonated

Drinks

Harmful,

2010

published

by

www.livestong.com)

( Hussain.A may 9 2009 www.dawn.com)

(DUBLIN, Research and Markets Press Release download on Tuesday May 10, 2011, 10:13 byhttp://www.ncbi.nlm.nih.gov/pubmed/1844997)

(Anonymous, global consumption of soft drink downloaded on 25 may by http://www.zenithinternational.com/pr/pr.cfm?ContentID=103 15dec03)

(Cooper.D and S.S. Pamela 2010 Business research methods 12e, india )

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Appendix
Market follower (page#11) These are the individual or the companies which has very less amount of the market share in the industry and serve only the small group of consumer and the companies have more share does not have any fear from them None branded (page#11) The product and services which does not have any companies or the producer name normally considered the product inferior in quality Dichotomous questions (page#17) This type of question has a answer opposite to each other and normally in yes or no but some time not only this case

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Sample of questionnaire Questionnaire ID._________ Interviewer._____________ Date.____________ Time._________________ Location.___________ A comparative analysis of consumer preferences towards carbonated and non carbonated drinks in Faisalabad city
We are the student of MBA in UAF and conducting research study on comparative analysis of consumer preferences towards carbonated and non carbonated drinks in Faisalabad city. Kindly give us five minutes from your schedule to fill up this questionnaire. We assure you that this information will be used only for study purpose. Name ____________________ Education__________________ Age _______Years Profession _________________________ Gender Male Female

1. What will you prefer to fulfil your thirst from outside your home?
Water Soft drink

2. What kind of soft drink do you like?

Carbonated Non-carbonated

3. Write down in the blank boxes according to your choice

DRINK Favourite brand Favourite flavour Carbonated Non-carbonated

4. What is your reason of attraction towards this brand?

Advertisement Taste Availability Any other (mention here______________
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5. What is your average daily spending on soft drinks?

Rs: Below 30 Rs: 30 to 50 Rs :50 to 100 Rs: Above 100

6. Does high level of thirst affect your choice between carbonated and non-carbonated
drinks? Yes No

7. What type of change do you want in the brand

Flavour Packaging Nothing

8. Availability affects the choice for drink

Strongly agree Agree Somewhat agree Strongly disagree

9. Do you think that carbonated drinks are harmful for health?

Yes No

10. Do you avoid from carbonated drinks in view that these are harmful for health?
Yes Sometime Not At All

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11. While selection of any drinks which factor affect you most
Cost Brand Name Any other (mention here_____________

12. Drink should be high quality doesnt matter carbonated or non-carbonated

(do you agree with statement) Yes No Thank you for sparing time for us.

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