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Consumer Perception With Respect To Brand AwarenessandBrandLoyaltyACasestudyofCokePepsi
Consumer Perception With Respect To Brand AwarenessandBrandLoyaltyACasestudyofCokePepsi
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Hafeez Ur Rehman
University of Maryland, College Park
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A comparative study
Brands of Coke & Pepsi
My work is dedicated to my Parents. Siblings and my special friends S. M. Ejaz Ul Hassan Zaidi & M
Babar, Shahid Hussain and Ahsan zia
Whose unrestrained Love, Affection, affluent encouragements lead me to this successive stage
And also humbly dedicated to all my teacher and my fellows especially to Dr. Isha sahar PU Lahore.
Whose Fortifying cooperation, help and support evoked Motivation, inspiration and courage to get
gratitude to the almighty ALLAH, The most Gracious, Compassionate and Beneficent and Our Holy Prophet
Hazrat MUHAMMAD (S.A.W.), who is the true torch of guidance for whole humanity and all knowledge
forever.
I am very grateful to my loving and caring parents & siblings for providing me all sort of moral, social
and financial support during my life, especially to my loving Mother whose prayers were incessant and
enabled me to reach this stage & my Father who always provoked a power in myself to lead me to success .I
heartily express my love to all my siblings for their love and care.
I would like to say heartiest thanks to my Project advisor for their guidance, valuable suggestions, keen
I am very thankful to Mr. Arslan Mir (Target Engineering & Enterprises), Engr. Nadeem Ullah Sheikh
(GM Tech.), Mr. Tahir (AM E&I at CPBM) Mr. Mark Laird ( MD Miltek Middle East) , Asad Aziz (Sales
manager Mil-tek Middle East) and all the mentors who kept on guiding me to select Marketing field and
encouraged & helped me to go through it also I can’t forget to express thanks to all my other faculty teachers
for other marketing & research courses who helped me a lot by opening marketing & research concepts for
me.
Also I would like to thanks all my fellows, colleagues, seniors and juniors especially my friend Ejaz , M Babar,
my cousin Abdul Ahad , Dr. Isha & all who vulcanized me whenever I was at a mickle of hard time, to
encourage me all the way. Here, I also wish to express my feelings that May this work can be a positive
For the underlying project, a questionnaire will be used to gather the data about the
selected brands, consumer perception, loyalty and consumer awareness towards these
brands and
This project will help to improve the stronger brands, impact of brand awareness and brand
loyalty. It will also lead the marketer to construct and develop improved branding
strategies through its results and outcomes while dealing with consumer’s perception,
awareness about brand.
The outcomes can be implemented while dealing with the strategies, involving the
consumer’s loyalty, brand awareness, brand positioning and determining the brand
strengths in market.
Table of Contents
DEDICATION ................................................................................................................................................... 2
ACKNOWLEDGEMENT ................................................................................................................................. 3
Executive Summary ........................................................................................................................................... 4
Chapter 1 ............................................................................................................................................................ 8
1.1 Introduction of the Project: ................................................................................................................. 8
1.2 Background: ...................................................................................................................................... 11
1.3 Brand/Company’s introduction: ........................................................................................................ 13
1.3.1 COKE:........................................................................................................................................ 13
1.3.2 PEPSI: ........................................................................................................................................ 14
1.4 List of competitors: ........................................................................................................................... 15
1.5 Objectives of Project: ........................................................................................................................ 16
1.6 Significance: ...................................................................................................................................... 16
Chapter No. 2 ................................................................................................................................................... 17
2.1 Marketing mix: .................................................................................................................................. 18
2.1.1 Coke – Product:.......................................................................................................................... 18
2.1.2 Coke – Price: .............................................................................................................................. 19
2.1.3 Coke – Place: ............................................................................................................................. 19
2.1.4 Coke – Promotion: ..................................................................................................................... 19
2.2 Market segmentation strategies ......................................................................................................... 20
2.3 Target marketing strategies ............................................................................................................... 20
2.4 Brand Loyalty of Coke ...................................................................................................................... 20
2.4.1 Defining Brand Loyalty: ............................................................................................................ 20
2.4.2 Elements of Brand Loyalty ........................................................................................................ 21
2.4.3 Impact of Brand equity .............................................................................................................. 22
2.5 Brand Awareness of Coke ................................................................................................................. 22
2.5.1 What is Brand awareness ........................................................................................................... 22
2.5.2 Why Brand Awareness is Important .......................................................................................... 22
2.5.3 Building Brand Awareness ........................................................................................................ 23
Chapter No. 3 ................................................................................................................................................... 23
3.1 Introduction of the competitor firm ................................................................................................... 23
3.1.1 Major brands of Pepsi: ............................................................................................................... 24
3.2 Marketing mix ................................................................................................................................... 24
3.3 Market segmentation strategies ......................................................................................................... 25
3.4 Target marketing strategies: .............................................................................................................. 26
3.5 Brand Awareness of Pepsi................................................................................................................. 26
3.5.1 What is Brand awareness ........................................................................................................... 26
3.5.2 Why Brand Awareness is Important .......................................................................................... 26
3.5.3 Building Brand Awareness ........................................................................................................ 26
3.5.4 Defining Brand Loyalty: ............................................................................................................ 27
3.5.5 Elements of Brand Loyalty ........................................................................................................ 27
3.5.6 Impact of Brand equity .............................................................................................................. 28
Chapter No 4 .................................................................................................................................................... 28
Methodology................................................................................................................................................. 28
Methodology ................................................................................................................................................ 28
4.1 Data Collection Sources .................................................................................................................... 29
4.1.1 Primary sources .......................................................................................................................... 29
4.1.2 Secondary sources:..................................................................................................................... 29
4.2 Data Collection Tools/Instruments.................................................................................................... 29
4.3 Sampling: .......................................................................................................................................... 29
4.3.1 Sample Size:............................................................................................................................... 30
4.3.2 Sampling Technique .................................................................................................................. 30
4.3.3 Data Collection/Fieldwork ......................................................................................................... 30
4.3.4 Questionnaire ............................................................................................................................. 30
Chapter No 5 .................................................................................................................................................... 31
5.1 Fieldwork/Data Collection: ............................................................................................................... 31
5.1.1 Data Collection .......................................................................................................................... 31
5.1.2 Data QC Assurance .................................................................................................................... 32
5.1.3 Time Constraints & Data Source Management ......................................................................... 32
5.2 Project Questionnaire: ....................................................................................................................... 32
5.2.1 Questions about Target Segments .............................................................................................. 34
5.2.2 Questions about Brand Loyalty& Brand Awareness: ................................................................ 35
5.2.3 Questions about Brand Awareness: ........................................................................................... 35
5.2.4 Questions about Brand Loyalty: ................................................................................................ 35
5.3 Data Processing, Analysis & Interpretation: ..................................................................................... 36
5.4 Summary: .......................................................................................................................................... 49
Chapter No 6 .................................................................................................................................................... 50
6.1 Conclusions: ...................................................................................................................................... 50
6.2 Recommendations: ............................................................................................................................ 51
6.3 Limitations: ....................................................................................................................................... 52
Part II ............................................................................................................................................................... 54
I. Introduction of the student .................................................................................................................... 54
II. Appendix/Appendixes ....................................................................................................................... 55
III. Figures & Tables: .............................................................................................................................. 58
IV. Bibliography ...................................................................................................................................... 60
Chapter 1
INTRODUCTION
1.1 Introduction of the Project:
The project is based on the comparative study of two brands from the beverage
industry, one is Pepsi and Coke.
This study will be based on the perspectives of brand awareness and brand loyalty
with respect to the consumer perception about the brands.
Both the brands are very famous and excessively used throughout the globe among
the fast moving consumer goods, so more convenient to draw conclusions and
perform research with the limited time and resources.
Consumer’s awareness about the brand and loyalty for the brands are the key
factors for predicting the success of a brand or positioning of any brand within the
given market.
Both the factors, brand awareness and brand loyalty has a great impact on
consumer’s perception about the brand equity.
Perception is a process through which any consumer tries to manipulate the brand
information in order to get awareness about the brand which can lead to
transformation of brand into brand loyalty.
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
Generally, during perception following stages cause revival to brand loyalty and
awareness through following stages.
• Brand Selection
• Brand Information
• Image formulation
• Brand Loyalty
Humans unlike machines can have the ability to Perceive. It is a feeling which is
based on the conclusion formed with the given information around and the mindset
of the consumer which is responsible of processing the information. Perception
gives humans the might to make important decisions or can reflect their important
decisions. It all leads to the most important decision of purchasing. Purchasing
means investing into the brand, for making it a greater brand.
Total sales turnover of the brand depends on the consumer purchase decision. If
the consumers perceive positive about the brand, it means he carriers more loyalty
and will remain potential customer, until he keeps on getting the right value for his
money.
A comparative study will be performed for the selected brands i.e. Coke and Pepsi,
during the project under the title of “Consumer perception with respect to Brand
Awareness and Brand Loyalty”.
Both the selected brands, Pepsi and Coke are FMCGs, which are used all over
the world by different segment of consumers with different demographics i.e.
gender, ages, occupations etc. Both the brands are marketing, their brands as
soft drinks for consumers. These soft drinks are used frequently in daily lives.
These are used excessively at Fast foods ,hotels/restaurants, during amusing
guest at home, events & occasions like Holy events of Eids & birthdays/
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
Wedding parties and other events.
These brands have matured over the years, have formed higher levels of
awareness and strong brand loyalties and build up specific perceptions about
these brands.
While completing the project and performing the research, necessary data will be
collected from the target population segments and analysis will be made to
determine & manipulate the perception of Consumers with respect to their Brand
Loyalty and Awareness of these brands.
Underlying research will focus on concluding the fact the how much is the impact
of brand perception on brand awareness and brand loyalty of these brands. Several
conclusions can be drawn if consumer perception plays any role and there is a
relation among the consumer perception, brand awareness and brand loyalty of
these brands.
The project is intended to fulfill the needs of marketing research which is quite
important for present marketing trends
Comparative study will help to evaluate and make marketing strategies and
decisions and guidelines as in current marketing era survival of brands depend
upon the awareness, differentiation, uniqueness, identity and perception based on
comparison of its competitive brands.
Thus, this research is quite important and beneficial to highlight & recognize
several aspects about the consumer’s perception, brand loyalty and brand
awareness to provide benefit and insights for marketing strategies and brand
development. It will help in creating new bonds and relationship between the
potential consumers and the brands.
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
1.2 Background:
Perception means the way in which something is regarded, understood, or
interpreted. More precisely, in marketing the perception can be defined as “the
process by which individuals select, organize, and interpret the input from their
senses to give meaning and order to the brands around them”. The Components of
perception are defined as i. perceiver, ii. Target of perception, iii. Situation. [1]
Future purchasing decisions are affected by the perception of quality of any product
or brand along with its origin and other attributes. [3]
The perception of consumer depends on how consumers think about any brand and
how they imagine about brands, so consumer perception is vital attribute for brand
comparisons. It is always at the heart of the business. It is vital since it can impact
consumer loyalty and awareness towards the brand which ultimately results in
change in purchase decision of consumer for the brand.
The brand success depends upon its ability to sustain the consumers loyal after
attaining the consumers through awareness and the keeping the perception of
brands good in the minds of consumers as it can influence consumer behavior,
which ultimately affects the brand. Thus brands spend a lot on effort on awareness
and to retain the consumers loyal to those brands.
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
Also, the loyalty and perception are not the same things, but they are inter related
attributes as There is a difference between objective, perception and loyalty. [6] [7]
[8] [9]
Thus, Consumer Perception affects the loyalty of a brand and also a brand loyalty
will be affected by the perception of that brand which also is affected the level of
Brand Awareness
An Increase in Awareness & Loyalty of brand leads to the brand equity. This,
phrase of brand equity is used in marketing to describe the value of having a well-
known brand name. The idea is based on the concept that a well-known brand
name or with higher awareness brand can earn more from market as compared to
a brand with a less awareness. The consumers believes about brand with more
awareness is better, well perceived, also becomes more famous and favorite as
compared to the brand which is less well-known. [10] [11] [12] [13]
Reason to study the brand awareness, brand loyalty on comparative basis is, so that
the behavior of the consumer and their perception and purchasing on the base of
that perception can be evaluated. Buying or purchasing behavior of any brand is
strongly influenced by perception which is a psychological factor. Ultimately in
order to keep brand loyalty or association of brand , the quality must be constantly
measured and evaluated in terms of consumer expectations and needs.[14][15]
Spreading the awareness, helps to spread the name of brand and it is considered as
the Extrinsic cues, which are generally more influential than that of intrinsic cues
i.e. Packaging [16]. Previously the researcher has reached to an agreement that the
liking a brand and making purchase of a brand, depends on more than just sensory
details. Also the non-physical details i.e. Brand name & prices also influence the
purchase decision of a consumers.[17]
So, in order to evaluate consumer Perception with respect to Brand Awareness and
Brand Loyalty these two famous brands of soft drinks will be undertaken the
research and also the research will be further extended to conclude the further
relation among the loyalty, awareness and perception of brands.
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
1.3 Brand/Company’s introduction:
1.3.1 COKE:
1.3.1.1 Coke International:
The Coca-Cola was found in the year 1886 by Dr. John Pemberton who produced
a Coca-Cola Syrup for sale in drinks. The bottling business was started by two US
Businessmen Benjamin Thomas & Joseph Whitehead when they got rights to sell
Coca-Cola.
Coca-Cola remained an independent & local company until the 1980s when the
bottle’s franchising business began to flourish. In 1986, Coke merged its some
operations with the John T. Lupton franchises & BCI Holding Corporation. The
Stocks were sold publicly by the Coke on 21st November, 1986at the adjusted
price of $5.5 per each share. In 1991, Coke became a larger Company with the
Merger between Coke and Johston Coke Bottling Group Inc. After the merger a
dramatic restructuring was carried out in 1992 which became successful. Over this
period 1.4 billion share sales were made and Coke’s total revenue was around $5
billion. Coke has geographically covered almost 59% of the world market and it is
the world’s biggest company in Soft Drink Industry and Coco-Cola is among the
most valuable Global Brands in the world. [19]
There are different brands of the Coke Company, which are currently in market
worldwide. Coke is engaged in carbonated as well as Other drinks.
• Coca-Cola
• Diet Coke/Coca-Cola light
• Minute Maid Pulpy
• Sprite
• Sprite 3-G
• Sprite Zero/diet Sprite/Sprite light
1.3.2 PEPSI:
1.3.2.1 Pepsi Cola International:
Pepsi was introduced by Caleb Bradham in 1893 at his drugstore. The Pepsi logo
was designed in 1905and redesigned in 1926 & 1929. In 1993, Pepsi went into
bankruptcy due to results of World War I. Pepsi Co is the merger of Pepsi-Cola &
Frito-Lay that took place in 1965. Some of the Pepsi brand names of very old (100
Years), but the Pepsi Corporation is fairly young. “Pepsi Cola” is derivation of two
principle ingredients i.e. Pepsin & kola Nuts. The Tropicana was acquired in 1998
and in 2001 The Quaker Oats Company merged with Pepsi.
Pepsi Co. brands are found nearly in 200 countries which consists Snack business
of Frito-Lay, Pepsi-Cola, Tropicana, Cereals & Other food products.
There are different brands of the Pepsi, which are currently in market worldwide.
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
Pepsi not only deals in the carbonated drinks but also other drinks.
Pepsi Max
Mirinda Vit C
Mirinda Citrus
7up
7up Free
Mountain Dew
Shani
• PepsiCo
• Thunder Cola
• Barbican
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
• Holsten
• Red Bull
• Monster Energy
• Power horse
Also, as brand awareness or relatedness to the brand is something which keeps the
consumer committed to the brand as compared to their competitors and keep the
consumers to stick with the brand even though market pressure of other brands is
there.
When consumers start perceiving good about a brand, then their relatedness and
loyalty with that brand increases.
As brand loyalty become stronger, brand become more strong and popular among
its potential consumers. Thus, the study of the consumer’s perception about the
brand and its relation with brand loyalty and brand awareness is a significant topic
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
to research on.
The research is also significant to help to draw some useful conclusions which will
be helpful to develop the brands and help them to acquire the competitive
advantage over other brands.
The conclusions drawn from the underlying research will help the brands to
improve their awareness and then to increase the loyalty of consumers with the
brand with respect to consumer perception about the brands.
Research can be utilized to construct and develop more striking branding strategies
using the conclusions of the research regarding consumer perception, brand loyalty
and brand awareness.
The result outcomes can be utilized to decide about the consumer’s brand loyalty,
perceived image and positioning of brand to determining the brand strengths and
standings in the markets.
Chapter No. 2
A product formula is held as trade secrets and few employees know a little about
it and can’t duplicate it. When we talk about product in terms of product
ingredients, its flavors, its brands, packaging can all be different. Since coke has
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
several product brands like Fanta, diet coke, coke etc.
Packaging in glass bottle, tin packs in different quantities, served as chill adds to
the flavors.
Pepsi and Coke are ruling the market due to the pricing strategies. The price of
Coke is based on the cost based as well as demand and supply. They have to sell
in volumes in order to generate high turnovers, since the profit margins are low.
In UAE market Pepsi and Coke had a strong monopoly with a price of 1 Dirham
and just recently the price has been increased to 1.5 Dirhams.
A common man under the scotching heat of the desert can afford to buy a 1 Dirham
can of 330ml to overcome his thirst. This quantity, price and packing are not
available anywhere else. Therefore both Coke and Pepsi keep a common price in
order to compete.
1. Advertising (TV, Bill Boards, Radio Adds, Affiliation with other brands)
3. Sales promotion (Discounts, jumbo packs, buy one get one free)
Coke is utilizing the Event organizational activities i.e. Coke studio, different
seasonal events such as Eid, Basanet, Cricket Matches etc
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
2.2 Market segmentation strategies
Coke has segmented its Market in four broad ways, which are given below:
• Mass Marketing
• Differentiated Marketing
• Concentrated Marketing
• Niche Marketing
For Example Coke is offering Diet Coke, Regular Coke, Sprite, Fanta and such
other flavors keeping in view the needs & preferences of customers from different
segments.
Coke is targeting almost all age groups & market characteristics with greater
products diversification including Children, Male, Female, Youngers and even
Elders, Students, Professionals, Businessman, Employees and Households.
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
product of same brand rather than switching to other brands. In other words the
social and psychological attachment of a customer with particular brand is said to
be Brand Loyalty. Coke has massively developed its Brand Loyalty by providing
value-added services and personalized offerings.
Brand loyalty exhibits the personal bondage with the brand. A customized service
on part of Coke, play a vital role in building personal bondage. Due to this a
customer is ready to go an extra mile to get the same brand product instead of
switching his choice. Special offers for loyal customers promote the word of mouth
and bring more & more referrals for brand.
2.4.2.2 Pricing
Pricing is the key marketing factor which is closely related with brand positioning
in market. Coke has adopted the different pricing strategies for different market
groups as right price for the right value of product is very important in brand
loyalty. This is because it has to not only meet the customer requirements but he
has to give something extra than expectations.
With Value-Added Services, the brand adds value to the customer experience of
buying a product and pays back more than the expectations of customers. The
brands life is also associated with value addition. More the value Coke offers more
the brand grows and inversely it would decline to die if there is no value-addition.
It is important factor for sustaining Brand Equity as well.
2.4.2.4 Finance
Finance refers to the Revenues & Profits that comes with Sales. Coke beverages
are consumed all around the world with its massive amounts of sales. Coke is
financially sound to set the budges for future marketing to sustain the value added
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
services with best price to maintain brand loyalty and brand image.
Retaining a loyal customer is more easy & productive than finding more new
customers. The customer retention includes the first contact of customer with
brand to the entire life experience of brand produces, value-added services and
offerings. The products & services are not the only attributes for customer
retention, but the way customer is being served is also key feature to retention.
Coke is retaining its Market share with is distinctive customer focused strategies
and flavored products for variety of customer needs.
Brand Awareness is simply the recognition and existence of the particular brand.
How well the customer knows about the Coke or how well is the customer
informed with brand offerings defines the level of Brand Awareness. It is the
foremost step for promoting the Brand and Product.
For Building Brand Awareness a complete strategy takes place which includes the
Logo, symbols taglines and all the related images & messages. The Coke has been
very prominent in building its Brand Awareness through particular messages,
segment-specific tactics, geographical strategies and various promotional tactics.
This is why the brand of Coke is among the 10 Best Global Brands.
Chapter No. 3
Competitor Analysis
Pepsi Co is the merger of Pepsi-Cola & Frito-Lay that took place in 1965. Some
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
of the Pepsi brand names of very old (100 Years), but the Pepsi Corporation is
fairly young. “Pepsi Cola” is derivation of two principle ingredients i.e. Pepsin &
kola Nuts. The Tropicana was acquired in 1998 and in 2001 The Quaker Oats
Company merged with Pepsi.
Pepsi Co. brands are found nearly in 200 countries which consists Snack business
of Frito-Lay, Pepsi-Cola, Tropicana, Cereals & Other food products.
Pepsi Cola Entered in the Market of Dubai (UAE) by offering Pepsi Franchise to
Dubai Refreshment Co. in 1979 with following brands:
• Pepsi Regular
• Pepsi Diet
• 7-Up
• 7-Up Free
• Mirinda
• Mountain Dew
Marketing Mix is the basic marketing tool with 4 major Marketing Functions often
referred as 4 Ps that is Product, Price, Place & Promotion.
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
Pepsi was the market leader in beverage industry and it was using Cost-
based Pricing Strategy which means the price of Product included cost
incurred on product plus the margin. However, with the rising global
widespread of Coke and emergence of other competitors like Sufi &
Gourmet Cola etc. Pepsi is now using Competitive Pricing Strategy to keep
pace with this competitive market era.
• Place or Distribution Channel is also another major tool of Marketing Mix.
It simply deals with the complete procedure of getting the product from
manufacturing site to the end user. It includes, transportation channels of
distribution, warehouses etc. Pepsi has its Distribution strategy in all
around the world. It has many franchises, wholesalers, retailers and
distribution agencies worldwide in different countries, which help the
Pepsi in building their strong Distribution Network across the globe.
• Promotion is also one of the major tools of Marketing Mix. It is the process
of communicating the company message to customers and to promote the
company products. The key promotional strategies of Pepsi include
Advertising, Sales Promotion, Personal Selling, Publicity & Public
Relations. Additionally, it is also using Seasonal Events strategies for
promotions and it has also been a sponsor for Pakistan Cricket Board,
Cricket World Cups & Other Sports.
The following are the broad ways in which Pepsi has segmented its market like its
competitor Coke.
• Mass Marketing
• Concentrated marketing
• Differentiated marketing
• Niche marketing
Pepsi is also using differentiated market segmentation method like Coke in order
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
to satisfy the needs of diverse market groups. It has offered different flavors
Regular Pepsi, 7-Up, Mirinida, Mountain Dew. It has varied price ranges and
packages in regular, tin packs 1.5 Liter and now 2.25 Liter even. For example
Mountain Dew is preferred by teenagers & youngsters whereas Health-conscious
people prefer 7-Up.
Pepsi is targeting a very wide segment market without gender difference. It covers
Children, youngsters, elders, professionals, businessmen, students and households
as well. Its target market is considerably large. It has designed different products
or flavor for different market segments. For example, Pepsi offers 7-Up to Health
Conscious people, Dew for youngsters & teenagers whereas Regular Pepsi Drink
for average people.
Brand Awareness is important because the Brand awareness brings the initial sales
that are converted into brand loyalty. Brand Awareness is a key process to gain
initial contact with customers, build relationship & convert them to become loyal.
If there is no brand awareness in market, the brand would become useless. More
the brand awareness is built more the chances of success..
Brand Loyalty refers to the social & psychological attachment of customer with a
particular brand. It is the personal bondage of customer with the brand. A person
with Brand loyalty repeatedly purchases the products of same brand without
switching to other choices easily available. There is good brand loyalty developed
by Pepsi as well as the customers of Pepsi for its different flavors & products are
found loyal to the brand.
Brand loyalty ensures customer satisfaction and his bondage with the brand. Pepsi
is also promoting its brand loyalty by offering personalized services like different
flavors for particular group of people and geographic specific ads with related
messages to create the good feel in customers of being cared.
3.5.5.2 Pricing
Pricing Strategy plays a key role in building brand loyalty and to position the brand
in Market. Pepsi was already adopting cost based pricing but now they are adopting
Competitive Pricing Strategy to give value to customers over competitors for
building brand loyalty.
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
3.5.5.4 Finance
Finance as element of brand loyalty refers to the brand’s financial position to carry
out strategies & campaigns for building Brand Loyalty. Pepsi is a large
organization with sound financial position to launch different schemes &
campaigns for Brand Loyalty.
Chapter No 4
Methodology
Methodology
This project does the comparative study of following perspective of marketing
related to brands,
i. Consumer perception
1. Consumers of Coke
2. Consumers of Pepsi
The main targeted population for the project are Consumers of soft drinks and
For the current research project subjects or target population chosen was from the
Consumers of Coke and Pepsi brands.
The subjects were individual consumers, household, student, people form different
professions with different age , gender, social class and local people of UAE.
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
4.3.1 Sample Size:
To keep the research time convenient and time bound, a Sample size of 100 was
taken.
This reasonable size of sample was taken in order to collect the sufficient reliable
and authentic data and to make sure the ease of access for the data.
But for sample size of 100 to choose the samples conveniently and easily,
Convenience sampling technique was used, because by using this technique, we
can select the cases haphazardly on the basis of ease of access.[21]
4.3.4 Questionnaire
The Questionnaire was used as the data collection tool and questions were
developed in manner to provide following type of information,
• Information to disclose the consumers perception about the Coke and Pepsi
• Information to show the brand awareness
• Information to help predict the brand loyalty
• To help to gain information directly from the consumer of Pepsi & Coke
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
Chapter No 5
All the data for the project was gathered using the questionnaire in order to
determine the specific responses of the sample population.
Different other sources of data collection were used in order to collect data for
other uses i.e. introduction of companies and brands, for marketing strategies
mixes etc. The used sources for this purpose were some Previous research work,
Web information, Official stats/Reports, Reviews and case studies about brands
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
5.1.2 Data QC Assurance
During the data collection Quality of data during all the phases of project generally
and in data collection particularly was assured from all aspects of the data
collection process to minimize error and enhance the reliability of data and
conclusions drawn.
Major portion of data for brands, their history, market segments, consumer
behavior, opinions, brand association. The facts and figures, business analysis,
annual business reports and surveys, Reviews etc. are taken from online webs of
Coke i.e. and Pepsi.
• Consumer perception
• Brand loyalty
• Brand awareness
• Repeat purchase behavior
Gender
Male
Female
Age
a. 20-30
b. 30-40
c. 40-50
d. Above 50
Occupation
a. Student
b. Government Employee
c. Businessman
d. Household
e. Other
a. Coke
b. Pepsi
How often do you purchase the brand (Note: Change in Frequency of purchasing the brand)?
a. Twice in a day
b. Once in a day
c. Once in two days
d. Occasionally
This question is modified because these FMGS needs to be evaluated on small intervals i.e. Daily basis,
instead of monthly basis.
Please rate how strongly you agree or disagree with each of the following statements by placing a check
mark in the appropriate box.
1= Strongly Agree (SA) 2. = Agree (A) 3. = Neutral (N) 4. = Disagree (D) 5. = Strongly Disagree (SD)
SA A N D SD
I did not search attribute information of the brands I was not aware of.
If my preferred brand in this product class is not available at the store, it makes
little difference to me if I must choose another brand.
If I had made a brand choice in this product class before actually making the purchase,
I might easily change my intended choice upon receiving discrepant information.
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
I automatically knew which brand to buy.
At the place of purchase, I could visually detect my preferred brand without much
effort.
I can quickly recall the symbol or logo of brand when I am not at the place of purchase.
When think about that product line, I always have the brand in mind.
Question No. 2
Age of Respondent
a. 20-30
b. 30-40
c. 40-50
d. Above 50
Question No. 3
Occupation of Respondent
e. Student
f. Government Employee
g. Businessman
h. Household
i. Other
Above all three questions were asked to determine the segment’s demographical
characteristics and to sort out the intended respondents by their gender as both male
& females were surveyed for these FMCGs brands.
Similarly Question on the Age of respondents were taken which were ranged from
20 -30, 30-40, 40-50 and Above 50 to include the target population of all ages and
moods.
Similarly from several occupations, consumers were selected to cover all life styles
of consumers.
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
As these brand products fall in category of Fast Moving Consuming Goods thus
the respondents were included from Genders, different ages and different
occupations.
In order to determine the consumer’s perception about the brand, likert scale from
“strongly agree” to “strongly disagree” was used for following Questions,
• I did not search attribute information of the brands I was not aware of.
• I usually purchase the same brand within a product class.
• At the place of purchase, I could visually detect my preferred brand without
much effort.
• I can quickly recall the symbol or logo of brand when I am not at the place
of purchase.
• When think about that product line, I always have the brand in mind.
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
• If I had made a brand choice in this product class before actually making
the purchase, I might easily change my intended choice upon receiving
discrepant information.
• I automatically knew which brand to buy.
• When think about that product line, I always have the brand in mind.
120%
100%
100%
80% 65%
60% Pepsi
35%
40% Coke
20% Total
0%
Pepsi 65%
Coke 35%
Total 100%
Interpretation:
Question No. 2
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
Age of Subject/Respondent
a. 20-30
b. 30-40
c. 40-50
d. Above 51
Frequency Table for Subject Age:
35% 30%
30%
25% 19%
20% 17%
11% 11% 11% 13%
15%
7% M…
10% 6% 6%
5% 2% 1%
0%
20-30 30-40 40-50 Above 50
Male 19% 11% 11% 6%
Female 11% 6% 2% 1%
Total 30% 17% 13% 7%
Interpretation:
Thus, Majority of the people was young and between 20-30 years age, it means
majority of the consumers of soft drinks are young people between 20-30.
Question No. 3
Gender of Subject
• Male
• Female
Frequency Table for Subject Gender:
80%
60%
40% Female
60%
20% 40% Male
0%
Male Female
Interpretation:
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
Occupation of Subject/Respondent (what is your Occupation?)
Frequency Table for Subject Occupation:
50% 45%
40%
28%
30%
20% 17% 15% 17% M…
13% 11% 13% 13%
9% 10%
10% 4%
2% 2% 1%
0%
Student Govt. Employee Business man Household Others
Male 28% 13% 11% 9% 13%
Female 17% 2% 2% 1% 4%
Total 45% 15% 13% 10% 17%
Interpretation:
Question No. 5
Frequency of Purchasing the Brand
(** This question is amended in days from in month as these brands are FMGs
and is use very much frequently)
a. Twice in a day
b. Once in a day
c. Once in two days
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
d. Occasionally
Frequency Table for Purchase Frequency of the brand:
Occasionally 3 5% 2 6%
40% 37%
30% 26%
Coke
20%
11% 12%
6% Pepsi
10% 5%
0%
Twice in a Day Once in a Day Once in two Days Occassionaly
Coke 26% 57% 12% 5%
Pepsi 11% 46% 37% 6%
Interpretation:
Thus, both Coke & Pepsi are used frequently i.e. twice a day as these are FMGs
Further; Coke is used more than Pepsi. For Pepsi , occasional or consumers with
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
once in a two days are more than Coke which means Coke is more consumed as
compared to Coke on daily basis.
Question No. 6
I did not search attribute information of the brands I was not aware of.
Frequency Table:
B Agree 4 5% 1 2%
C Neutral 8 11% 5 14%
D Disagree 13 20% 7 21%
E Strongly 40 62% 21 61%
Disagree
Total 65 100% 35 100%
Table 6: Frequency Table for Question No. 6
Graph:
70% 62% 61%
60%
50%
40%
30% Coca Cola
20% 21%
20% 11% 14% Pepsi
10% 2% 2% 5% 2%
0%
Strongly Agree Agree Neutral Disagree Strongly Disagree
Coca Cola 2% 5% 11% 20% 62%
Pepsi 2% 2% 14% 21% 61%
Interpretation:
While asked about the searching the attribute information which are not known
about brand in terms inquisitive behavior about the awareness of brands,
Among Coke consumers,
• 2 % strongly agreed,
• 5 % agreed
• 11 % remained neutral by not agreeing or disagreeing,
• 20 % disagreed
• 62 % strongly disagreed
On the other hand, Pepsi consumers were,
• 2 % strongly agreed
• 2 % agreed
• 14 % remained neutral by neither agreeing nor disagreeing
• 21 % disagreed
• 61 % strongly disagreed
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
Thus, mostly consumers strongly disagreed that they are not in search of new
attributes of brands which they do not know.
Question No. 7
I usually purchase the same brand within a product class.
Frequency Table:
Graph:
60% 56% 48%
50%
38%
40% 29%
30% Coke
20% 9% 8% Pepsi
10% 4% 3% 2% 3%
0%
Strongly Agree Agree Neutral Disagree Strongly Disagree
Coke 56% 29% 9% 4% 2%
Pepsi 48% 38% 8% 3% 3%
Interpretation:
While asked about the purchase of specific brand that if consumer purchase that
very same brand whenever they want to buy the soft drink,
Coke consumers were,
• 56 % strongly agreed,
• 29 % agreed
• 9 % remained neutral
• 4 % disagreed
• 2 % strongly disagreed.
On the other hand, Pepsi consumers were,
• 48 % strongly agreed
• 38 % agreed
• 8 % remained neutral by neither agreeing nor disagreeing
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
• 3 % disagreed
• 3 % strongly disagreed
Thus, for both brands majority of the consumers strongly agreed that they used to
purchase the same brand in the product class i.e. soft drinks.
Question No. 8
If my preferred brand in this product class is not available at the store, it makes little
difference to me if I must choose another brand.
Frequency Table:
Interpretation:
While asked about if the consumer do not bother to change their decision about
purchasing the specific brand of coke or Pepsi, in case of unavailability of any of
these brands, the responses were as under,
Coke consumers were,
• 2 % strongly agreed
• 4 % agreed
• 7 % remained neutral by not agreeing or disagreeing
• 22 % disagreed
• 65 % strongly disagreed
On the other hand, Pepsi consumers were,
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
• 3 % strongly agreed
• 3 % agreed
• 6% remained neutral by neither agreeing nor disagreeing
• 28 % disagreed
• 60 % strongly disagreed
Thus, for both brands majority of the consumers strongly disagreed that they will
purchase another brand, if their favorite brand is not available.
Question No. 9
If I had made a brand choice in this product class before actually making the purchase, I
might easily change my intended choice upon receiving discrepant information.
Frequency Table:
Interpretation:
While it was asked about the effect of discrepant information on purchase intended
choice of brand before actually making the purchase decisions,
Here, Coke consumers were,
• 56 % strongly agreed
• 35 % agreed
• 7 % remained neutral by not agreeing or disagreeing,
• 2 % disagreed
• no one strongly disagreed
On the other hand, Pepsi consumers were,
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
• 55 % strongly agreed
• 31 % agreed
• 11 % remained neutral by neither agreeing nor disagreeing
• 3% were disagreed a
• no one strongly disagreed
Thus, the results show that discrepant information badly affects the purchase
decision of consumer.
Question No. 10
I automatically knew which brand to buy.
Frequency Table:
Interpretation:
While asked about that if the consumer knew automatically, which brand to buy
Coke consumers were
• 50 % strongly agreed
• 25 % agreed
• 13 % remained neutral by not agreeing or disagreeing
• 8 % disagreed
• 4% strongly disagreed
On the other hand, Pepsi consumers were
• 49 % strongly agreed
• 20 % agreed
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
• 16 % remained neutral by neither agreeing nor disagreeing
• 20% were disagreed
• 5 % strongly disagreed
Thus, the results of this questions shows that people mostly have mind set, which
brand to buy so it’s all about the brand loyalty.
Question No. 11
At the place of purchase, I could visually detect my preferred brand without much effort.
Frequency Table:
60%
Coke
40% 23%
17% Pepsi
20% 3%
2% 1% 2% 1% 1%
0%
Strongly Agree Agree Neutral Disagree Strongly Disagree
Coke 80% 17% 2% 1% 1%
Pepsi 72% 23% 3% 2% 1%
Interpretation:
While asked about if at the place of purchase, if consumer could visually detect his
preferred brand without much effort.
Question No. 12
I can quickly recall the symbol or logo of brand when I am not at the place of purchase.
Frequency Table:
Interpretation:
While asked about remembering the logo of the brand, the answers were as follow,
Coke consumers were
• 58 % strongly agreed
• 33 % agreed
• 5 % remained neutral by not agreeing or disagreeing
• 2% disagreed
• 2 % strongly disagreed
On the other hand, Pepsi consumers were
• 54 % strongly agreed
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
• 26 % agreed
• 14 % remained neutral by neither agreeing nor disagreeing
• 3 % disagreed
• 3 % strongly disagreed
The results show that the consumers of Coke & Pepsi can remember the logos of
their favorite brands even if they are not at place of purchase, so it shows high level
of loyalty and awareness.
Question No. 13
When think about that product line, I always have the brand in mind.
Frequency Table:
40% Coke
21% 22%
20% Pepsi
3% 3% 2% 3% 0% 0%
0%
Strongly Agree Agree Neutral Disagree Strongly Disagree
Coke 74% 21% 3% 2% 0%
Pepsi 72% 22% 3% 3% 0%
Interpretation:
While asked about whether they have this specific brand in their mind when talking
about this product line,
Coke consumers were
• 74 % strongly agreed
• 21 % agreed
• 3 % remained neutral by not agreeing or disagreeing
• 2% disagreed
• No one strongly disagreed
On the other hand, Pepsi consumers were,
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
• 72 % strongly agreed
• 22 % agreed
• 3 % remained neutral by neither agreeing nor disagreeing
• 3 % disagreed
• No one strongly disagreed
Thus, it is obvious that all the loyal consumer of any brand which has chosen that
very specific brand, they also go for same brand when they have to buy among the
beverage.
5.4 Summary:
The research was conducted on 100 sample size among which 60 % were male, 40 %
Females and also among both the brand under study Coke and Pepsi, Coke was chosen
by 65 % consumers and Pepsi by 35 %.
The conclusion was drawn that consumer do prefer that brand, for which more
awareness is spread through advertising or any other means. It also increases the
loyalty for brand.
Also consumers always look for more and more awareness about the brands and they
usually buys same brand in the product line of soft drink i.e. stick with coke or Pepsi
and also consumers do not easily change their mind about purchasing a brand, until
discrepant information about brand appear to them so care should be taken about
information disseminated about brand.
Also, when consumers become loyal with a brand then they recognize the brands very
well, they can imagine and remember the logos of brands and then they detect very
soon, their favorite brand among the several soft drinks.
Also, consumers stick with the brand and more loyal to brands which have well
awareness and are able to earn good perception. The study shows that more the
awareness about brand is spread, more people perceive good about the brand and thus
loyalty for that brand gets stronger.
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
Chapter No 6
Conclusion, recommendations and limitations
6.1 Conclusions:
This research product was aimed to determine the consumer perception about the
brands Coke & Pepsi based upon the perceived quality of brand by the consumers and
thus their association towards brands.
Following conclusions can be drawn from the study.
i. The overall research survey for Coke and Pepsi has revealed that Coke is more
adopted brand then that of Pepsi.
ii. Consumer’s perception and loyalty about those brands is better which are more
advertised or about which more information is spread. In our case of soft drinks,
coke due to its widespread awareness through its advertisement is more favorite
& consumers are more likely to buy Coke then Pepsi.
iii. The research leads to an important conclusion that Customer is always looking
for awareness due to several factors. Consumer always try to find more about
the features of any brands and even the brands they know very well, still they
want to know any new features or information about that brand.
iv. This research help to find the fact that the consumers, when they used to buy the
same brand whenever they have to make purchase in same product class i.e. soft
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
drinks, clothing, handheld devices and other FMGs, their loyalty with that brand
keep them sticking with that very same brand. So the brand loyalty is a major
factor in making consumer’s perception about the brand or in other words the
brand loyalty will be higher if the consumer perceptions are higher for the brand.
v. An important outcome from research is that when customers perception about
any brand becomes good, it help them to be loyal to that brand which also comes
through the brand awareness, as awareness helps to make the consumer, initially
interested and then loyal to the brand. So, in case of unavailability of any brand
on shelf, consumers still, don’t find it easy to change the mind about purchasing
other brand, which concludes that awareness and loyalty are linked strongly and
awareness of a brand help the consumers to perceive good about a brand and
then to stick to that brand.
vi. Research indicate that a well-known brand for which consumers have more
awareness, ultimately gets closer to consumers and also find a good image and
perceived value. Consumers being more aware of and loyal about these brands,
tend to prefer the brand when it comes to buying that brand.
vii. This research helps us to conclude that it is obvious that if at the place of
purchase consumers can visually detect their preferred brand then it means that
they are well familiar with it, they can recognized a brand due to awareness
about the brand and also it shows the loyalty of the consumers for that brand. At
the same time, more loyal are the consumers, more likely they have better
perception about the brand and they are more aware about the brand. So, in order
to increase the loyalty with the brand, the brand awareness must be expanded.
viii. Conclusion can be drawn from this research that, for both brands majority of the
consumers were strongly agreed with the statement that they can remember the
symbol /logo of their favorite brand.
ix. Thus loyalty is strongly connected to the fact that when consumers become
loyal, they can recall and remember the logos of their favorite brand; on the
other hand awareness is important factor, more they become aware with the
brand logos through advertising etc, they become more loyal towards the brand
and so does the consumer perception also increases.
x. Through the research we can conclude that if consumers have the brand in mind,
while they are discussing about the product line i.e. soft drinks, then it shows
the loyalty of the consumers towards that brand. The more quickly they can
remind the brand, more loyal are they with the brand and ultimately, it employee
that awareness is also very important and same is the case about the perception,
so consumer perception is linked to the awareness and loyalty of the brands.
6.2 Recommendations:
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
Concluding from the above research, following recommendations are worth
considering.
o As perception leads to the brand loyalty, thus brands in general and Coke and
Pepsi needs to focus on the point that its consumers are made to perceive more
value from the brand which can come through assuring them about quality of
product and other factor i.e. best price, best value, availability, trend etc.
o The perceived value should be increased through different ways, i.e. by
spreading more awareness without any discrepant information, to make the
consumers feel more loyal and aware about the brand. Coke and Pepsi here can
emphasize on enhancing the brand repute through more awareness or
advertisement so that perception of consumers about the brand improves and
hence loyalty dose too.
o Due to losing popularity of Pepsi among young people as found in research
who are more fans of Coke brand which are usually profit making segment for
cold drinks and FMCGs brands. Pepsi can concentrate on young people.
o Less people of elder age selected the Coke, so Coke should also focus on the
target market of elder consumers.
o Research suggest that brands awareness is the only way which brings a
perception of loyalty and also loyalty is the key to evoke good perception and
once loyalty is shown by consumer from any brand, consumer’s loyalty and
association with that brand will increase, so Coke and Pepsi especially in
contest of research and other brands in general should focus on spreading the
awareness about their brands by more and more advertising and should try to
gain the loyalty and good perception by consumers by their brand to increase
the consumers of their brands.
6.3 Limitations:
There were several limiting conditions which were faced as the restrictive factors
during the course of this research product and they have affected the research product
in one way or other.
Some important limitation which otherwise have let the research results and finding
more refined and improved, are
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
Part II
Organization’s Name:
Mil-Tek Middle East LLC
www.miltek.ae
Designation:
General Manager
Experience (Years)
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
II. Appendix/Appendixes
Research Questionnaires:
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
III. Figures & Tables:
Table 14: GLOBAL MARKET SHARE OfCoke
Non- All commercial
alcoholic Beverages
drink
10 year compound 5-year compound 2001 annual growth 2002 2002
annual growth annual growth
Compan Industry Compan Industry Compan Industry Company Compan Compan
y y y share y share y per
capita
Income
6% 5% 5% 5% 4% 4% 18% 9% 70
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
Figure 3: Packaging Range of Pepsi
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi
IV. Bibliography
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Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi