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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: Roll #

1. Rabia Muneer 43

2. Maha Qasim 42

3. Maria Tubasum 32

4. Muhammad Zubair Tari 15

5. Falak Shair 37

6. Muhammad Azam Khan 27

7. Muhammad Rizwan Iqbal 17

MBA (REGULAR)

SECTION (H)

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

Table of contents

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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

Page #

7

8

13

17

19

27

29

30

List of Tables Page

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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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20

21

22

23

24

25

List of Figures Page #

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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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21

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25

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Executive summary7 | P a g e

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

Chapter N0: 1 Introduction

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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

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particular contain phosphoric acid that might cause urinary changes that

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

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 may 9

2009 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

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

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non branded and some drinks like Jam-e-shareen, sandal are produced by

some companies like Qarshi and Hamdard.

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

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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 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% a 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:

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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 world’s 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.

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

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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 e-mail 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)

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)

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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 study is the

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

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

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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

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 noncarbonated total

Female 11 9 20

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Male 20 10 30

total 31 19 50

Table 4.1

Here is the graphical representation of the same data

Carbonated Non-carbonated0

5

10

15

20

25

30

35

Female

Male

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

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Age (years) Carbonated Non-carbonated total

Below-21 7 3 1021-25 22 10 3226-above 2 6 8Total 31 19 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

carbonatedNon-carbonated

05

10152025

7

3

22

102 6

below 21 21 - 25 26 and above

Figure 4.2

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

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Factors Frequenc

y

Percentage

s

Taste 40 40%

Availability 9 9%

Cost 18 18%

Brand name 21 21%

Advertisemen

t

3 3%

Other 9 9%

total 100 100%

Table 4.3

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

Taste40%

Availability9%

Cost18%

Brand name21%

Adver-tisment

3%Other

9%

Frequency

Figure 4.3

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

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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

Table 4.4

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

Classes Frequency

Less than 30 18

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Behaviour for carbonated

drinks

Frequency

Avoid 10

Sometime avoid 25

Never avoid 9

Total 44

30 – 50 17

50 – 100 10

Above 100 5

total 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)

less than 30 30-50 50 - 100 Above 10002468

1012141618

No. fo people

No. fo people

Figure 4.4

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

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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

Table 4.6

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Carbonated

drinks brand

No. of people

like this brand

Coke 28

Pepsi 17

Gorment 4

Other 1

total 50

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

Table 4.7

coke56%

pepsi34%

gormet8%

other2%

people

nestle48%

shezan24%

other28%

people

Figure 4.5 Figure 4.6

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Favourite brand for

carbonated drinks

Favourite brand for

Non-carbonated drinks

Non-carbonated

drinks

No. of people

Nestle 24

Shezan 12

Other 14

Total 50

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

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The sample we have selected tells us that the one person spend daily 38

rupees approximately for the consumption of the soft drinks

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 ____________________ Profession _________________________

Education__________________ Gender Male Female

Age _______Years

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

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DRINK Carbonated Non-carbonated

Favourite brand

Favourite flavour

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

Advertisement

Taste

Availability

Any other (mention here______________

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

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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

11.While selection of any drinks which factor affect you most

Cost

Brand Name

Any other (mention here_____________

12.Drink should be high quality doesn’t matter carbonated or non-carbonated

(do you agree with statement)

Yes

No

Thank you for sparing time for us.

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