Assignment

On
Measuring Brand Equity of ‘7 up’
Course Name:
Brand Management
Course Code:
MKT427

Prepared for:
Nazmul Huq
Lecturer,
Department of Business Administration
Stamford University Bangladesh

Prepared by:
Tamanna Mucsid BBA 028 08230
Nafiz Hassan BBA 027 07744
Mahmudul Haque BBA 028 08204
Midur Rahman Mithun BBA 028 08118
Samira Mustafiz Syed BBA 028 08253
Nahida Parvin BBA 028 08227

Date of submission: 28th April, 2009

 Brand
Management
Topic

Measuring Brand equity of

2
Letter of Transmittal

April 28, 2009

Nazmul Huq
Lecturer,
Department of Business Administration
Stamford University Bangladesh
Subject: Report on “Measurement of brand equity of 7 up”.

Dear Sir,

Here is the Report on “Measurement of brand equity of 7 up”. This paper was
worthwhile experience for us. We had truly enjoyed our time while preparing this report.

We have tried to make the report comprehensive one within the time. Along with the
textual studies, acquiring practical knowledge by interviewing the respondent of the
questionnaire (prepared for the research). Any sort of suggestion regarding the paper
would be greatly acknowledged and we would feel gratified if our paper serves its
purposes.

Thanks for choosing us for working on this topic.

Sincerely yours

Tamanna Mucsid BBA 028 08230

Nafiz Hassan BBA 027 07744
Mahmudul Haque BBA 028 08204
Midur Rahman Mithun BBA 028 08118
Samira Mustafiz Syed BBA 028 08253
Nahida Parvin BBA 028 08227

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 Acknowledgement

We would like to pay our sincere gratitude to almighty GOD for giving us
adequate patience and knowledge to prepare this report.

We wish to express our sincere and profound gratitude to Nazmul Huq,

Lecturer of Stamford University Bangladesh for his constant supervision,
continuous guidance, helpful criticisms, suggestion and encouragement
given throughout the research and preparation of this report.

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 Executive summery

In the first part of our assignment is introductory part. Here we have shown
the background of 7 UP. This contains information regarding how and by
whom the company was emerged. Then we have included the objective of
our study. After that we included the body/findings of the study here we
have shown the “SPSS” results by hypothesis testing. After that we have
drawn a conclusion with a detail explanation of the results. Finally, we have
included the bibliography.

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 History

7 Up is a brand of a lemon-lime flavored non-

caffeinated soft drink. The rights to the brand are held by
Dr Pepper Snapple Group in the United States, and
PepsiCo (or its licensees) in the rest of the world. The 7
Up logo includes a red spot between the '7' and 'Up'; this
red spot has been animated and used as a mascot for the
brand as Cool Spot.Charles Leiper Grigg was born in
1868 in Price's Branch, Missouri. As an adult, Grigg
moved to St. Louis and started working in advertising and
sales, where he was introduced to the carbonated
beverage business.By 1919, Charles Leiper Grigg was
working for a manufacturing company owned by Vess Jones. It was there that Grigg
invented and marketed his first soft drink called "Whistle".After a dispute with
management, Charles Leiper Grigg quit his job (giving away "Whistle") and started
working for the Warner Jenkinson Company, developing flavoring agents for soft drinks.
Grigg invented then his second soft drink called "Howdy". When he eventually moved on
from Warner Jenkinson Co., he took his soft drink "Howdy" with him.Together with
financier Edmund G. Ridgway, Grigg went on to form the Howdy Company. So far,
Grigg had invented two orange-flavored soft drinks. But his soft drinks struggled against
the king of all orange pop drinks, "Orange Crush". "Orange Crush" grew to dominate the
market for orange sodas.Charles Leiper Grigg decided to focus on lemon-lime flavors
and by in October of 1929 he had invented a new drink called, "Bib-Label Lithiated
Lemon-Lime Sodas".The name was quickly changed to " 7 Up Lithiated Lemon-Lime"
and then again quickly changed to just plain 7up.

Name
According to Professor Donald Sadoway (MIT) the name is
derived from the atomic mass of Lithium, 7, which was
originally one of the key ingredients of the drink (as lithium
citrate).However, there are numerous myths explaining the
name. One popular myth is that its creator named the soft
drink after seeing a cattle brand with the number 7 and the
letter U. Other theories suggest that the drink was
formulated with seven flavors plus the bubbles from the
drink's carbonation (the bubbles go up). Other ideas include
the original bottle contained seven ounces; its creator came
up with the name while playing dice; that it was the 7th
large commercial lemonade brand that tasted the same.
Another rumor has it that the name was created because the
company had previously failed six times, hence the name "7 Up". Before the formula
change in 2006, a can of 7 Up included seven ingredients. The "Up" in the drink's name
might refer to the original inclusion of lithium citrate, when it was marketed as a patent
medicine to cure hangovers.Some people mistakenly believe that the name 7 Up comes

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from the belief that its pH is 7.0 and therefore neutral. This is not the case at all: the pH
of 7 Up is comparable to many other soft drinks. 7 Up was created by Charles Leiper
Grigg who launched his St. Louis-based company The Howdy Corporation in 1920.
Grigg came up with the formula for a lemon-lime soft drink in 1929. The product,
originally named "Bib-Label Lithiated Lemon-Lime Soda", was launched two weeks
before the Wall Street Crash of 1929. It contained lithium citrate, a mood-stabilizing
drug. It was one of a number of patent medicine products popular in the late-19th and
early-20th centuries; they made claims similar to today's health foods. Specifically it was
marketed as a hangover cure. The product's name was soon changed to 7 Up.

The Great Depression was just the beginning of the business challenges the product
would face. In its early years, there were around 600 lemon-lime beverage brands being
sold in the US. 7 Up was able to survive and become the market leader in the category by
being one of the first to be nationally distributed as well as being marketed as more
healthy than other soft drinks.The success of 7 Up led Grigg to rename his company to
"The Seven Up Company" in 1936. Lithium citrate was removed from 7 Up's formula in
1950. Expanding the brand beyond a niche market, major competitors began to set their
sights on it such as The Coca-Cola Company with its Sprite brand introduced in 1961.
Sprite would not challenge 7 Up's position seriously until the 1980s when Coke forced its
major bottlers, then distributing 7 Up, to drop the beverage in deference to Sprite. 7 Up
challenged Coke's actions in court as "anti-competitive", a challenge they eventually lost.

Formula
7 Up has been reformulated several times since its launch in 1929. In 2006, the version of
the product sold in the U.S. was re-formulated so that
it could be marketed as being "100% Natural". This
was achieved by eliminating the preservative calcium
disodium EDTA, and replacing sodium citrate with
potassium citrate in order to reduce the beverage's
sodium content. This re-formulation contains no fruit
juice and is still sweetened with high fructose corn
syrup (HFCS). The manufacturing process used in the
production of HFCS has led some public health and
special interest groups to challenge the ad campaign's
"natural" claims. In 2007, after the Center for Science
in the Public Interest threatened to sue 7 Up, it was
announced that 7 Up would stop being marketed as
"100% natural". Instead, it is now promoted as having
"100% Natural Flavors". The controversy does not
extend to other countries, such as the United Kingdom,
where high fructose corn syrup is not generally used in foods, including 7 Up.

7
 Categories
Diet 7 Up
Cherry 7 Up
Cherry 7 Up Antioxidant
Pomegranate 7 Up
Raspberry 7 Up
Orange 7 Up
Diet Cherry 7 Up
7 Up Plus
7 Up Gold
7 Up Free
7 Up Ice Cola
7 Upside Down

Slogans and advertising campaigns

7 Up briefly sponsored the Jordan Formula One team in their first year during the 1991
season.

• You Like It, It Likes You (1936)

• The Fresh Up Family Drink (1952)
• Fresh up with 7 Up (1957)
• Get real action, 7 Up your thirst away (1963-1964)
• Wet 'n' Wild (1965, 1966)
• The (Diet) Uncola. (1967-1990s)
• Crisp refreshing 7 Up (1960s-1970s)
• It's 7 Up, it's Uncola (1975)
• UNdo it with 7 Up (Late 1970s)
• Feelin' 7 Up (1980)
• Canada's turning 7 Up (1980) Canada
• 7 Up, The Difference is Clear (1982)
• Never Had It, Never Will (1980s, reference to 7 Up not containing caffeine)
• The feeling of Christmas. (December 1980s)
• Put some Un in your life (diet). (early 1990s)
• When you want the taste of UN, there's only one (early 1990s, used concurrently
with previous slogan)
• On the spot. (early 1990s)
• Now that's refreshing. (1990s)
• 6 Up was not enough. We went one louder. (1994)
• It's an up thing. (1995)
• Make 7 Up Yours. (1999)
• Are you an Un? (Late 1990s-Early 2000s)

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 Problem Definition

Background of the problem:

The basic objective of the research is to measure the loyalty of the customer of ‘7 up’ on
the basis of some variables like- Brand awareness, Brand association, Perceived quatlity,
Brand Loyalty, Brand equity which was measured under the Age, Gender, Profession and
Education of the consumers.

Management decision problem:

 Whether there is any relationship between the awareness and perceived quality
 whether there is any relationship between the gender and awareness
 Whether there is any relationship between the gender and perceived quality
 Whether there is any assotiations between the age and loyalty

Approach to the problem

Theoretical Framework
As the research should be based on objective evidence and supported by a relevant theory
so we search for an appropriate theory which helps us to deal with the problem
effectively. Here we followed text book “Marketing research” by Naresh k. Malhotra and
we used the questionnaire method.

Research Design
Here we conducted descriptive research for determining factors influencing the
preference of the customers and the ultimate decision about their loyalty.
Methods of administering the questionnaire
We will conduct “Survey Method” under telephone interview and personal interview.

Scaling Techniques
Likert scales are used for conducting this research

Sampling plan and Sample size

Target population: Our target population for this research is general people of Bangladesh

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Sample size: 90 customers.

Sample technique: Convenience and judgmental sampling will be followed and

the elements will be selected for research considering judgment that is convenient.
A survey on the customers whether they are loyal after drinking 7 up

Awareness
When I think about this product, 7’up is the first brand that comes to mind
I can easily recognize this brand among other competing brands
I am aware of 7’up
Associations
Some characteristics of 7’up come to my mind quickly
I can quickly recall the symbol or logo of 7’up
7’up has strong personality
7’up is different from its competing brand
Perceived quality
7’up has undoubtedly the best quality in the marketplace
I can always trust on 7’up if I want a product of high quality
The quality of 7’up is very high
Loyalty
I consider myself to be loyal to 7’up
I always buy 7’up
If I were asked for a recommendation, I would suggest to buy 7’up
I recommend 7’up whenever I can
Brand equity
It makes sense to buy 7’up instead of any other brand, even if they are in the same
in quality or price
Even if another brand has the same features as 7’up, I would prefer to buy 7’up
If there is another brand as good as 7’up, I prefer to buy 7’up
If another brand is not different from 7’up in any way, it seems smarter to purchase
7’up

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 SPSS Worksheet
Case Processing Summary

Correlation: Gender and perceived Quality

Cases
Valid Missing Total
N Percent N Percent N Percent
Gender * PQ 90 100.0% 0 .0% 90 100.0%

Gender * PQ Crosstabulation

Count

Perceived Quality

1.00 1.67 2.00 2.33 2.67 3.33 4.00 4.33 4.67 5.00 5.33 5.67 6.00 6.33 7.00 Total
Gender male 3 0 2 2 3 1 6 1 2 10 7 7 5 3 2 54
Female
1 1 2 3 0 4 4 0 3 6 4 2 2 2 2 36
Total 4 1 4 5 3 5 10 1 5 16 11 9 7 5 4 90

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 Bar Chart

PQ
10
1.00
1.67
2.00
2.33
8
2.67
3.33
4.00
4.33
6
4.67
5.00
C
n
u
o

5.33
t

5.67
4
6.00
6.33
7.00

0
male Female
Gender

Cross tabulation: Association between Age and

Loyalty

Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
Age * LO 90 100.0% 0 .0% 90 100.0%

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 B ar C hart

5 LO
1.00
1.75
2.00
4 2.25
2.50
2.75
3.00
3 3.25
3.50
3.75
C
n
u
o

4.00
t

2 4.50
4.75
5.00
5.25
1 5.50
5.75
6.00
6.25
0 6.50
B etw een 16-Betw een 19-B etw een 22-Betw een 25- 28 and 6.75
18 21 24 27 above 7.00
Age

Cross tabulation: Association between Gender and

Awareness
Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
Gender * AW 90 100.0% 0 .0% 90 100.0%

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 Gender * AW Cross tabulation
Count
AW Total
2. 3.0 4. 5.0 6.0 7.0
1.00 1.67 00 2.33 2.67 0 3.33 3.67 00 4.33 4.67 0 5.33 5.67 0 6.33 6.67 0
Gender male 2 0 0 1 1 1 1 0 2 3 5 2 5 7 5 10 6 3 54
Female
0 2 1 1 1 1 1 3 1 3 0 4 0 4 1 6 2 5 36
Total 2 2 1 2 2 2 2 3 3 6 5 6 5 11 6 16 8 8 90

Bar Chart

AW
10
1.00
1.67
2.00
2.33
8
2.67
3.00
3.33
3.67
6
4.00
4.33
C
n
u
o

4.67
t

5.00
4
5.33
5.67
6.00
6.33
2 6.67
7.00

0
male Female
Gender

Factor Analysis: Awareness, Association,

Perceived Quality, Loyalty, Brand Eqiity
Communalities

Initial Extraction
AW 1.000 .751
ASS 1.000 .760
PQ 1.000 .731
LO 1.000 .811
BE 1.000 .678

Extraction Method: Principal Component Analysis.

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 Total Variance Explained

Initial Eigenvalues Extraction Sums of Squared Loadings

Component Total % of Variance Cumulative % Total % of Variance Cumulative %
1 3.730 74.608 74.608 3.730 74.608 74.608
2 .505 10.091 84.699
3 .369 7.373 92.072
4 .215 4.290 96.362
5 .182 3.638 100.000

Extraction Method: Principal Component Analysis.

Component Matrix (a)

Component

1
AW .866
ASS .872
PQ .855
LO .901
BE .823

Extraction Method: Principal Component Analysis.

A 1 component extracted.

Bibliography
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• WWW.7 up .com
• Marketing Research by-Naresh K. Malhotra

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