Mehran Beverages-COLA NEXT

CONSUMER BEHAVIOR
TERM REPORT (Spring Semester 2021)
Submitted to:

Sir Shah Muhammad Saleem

Submitted by:

Bilal Saeed 20181-23595

Iqra Raza 20153-18473

Geeta Kumari 20201-28648

Daniyal Ghazanfar 20181-28678

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 Mehran Beverages-COLA NEXT

Case Study

The Impact of Consumer

Behavior On
COLA NEXT

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Table of Contents
Executive Summary..............................................................................................................................................4

Purpose of the study.......................................................................................................................................4

Field of research................................................................................................................................................4

Market Analysis..................................................................................................................................................4

The issues and findings of the case study.........................................................................................4

Which theory based this case study......................................................................................................4

Findings.......................................................................................................................................................................5

Physiological needs..........................................................................................................................................5

Consumer Perception About Cola Next................................................................................................5

Perceptual Selection........................................................................................................................................6

Halo Effect..............................................................................................................................................................7

Consumer Imagery............................................................................................................................................7

Advertising Appeal...........................................................................................................................................8

Discussion.................................................................................................................................................................10

Distribution Network.....................................................................................................................................10

Market Placement...........................................................................................................................................10

Promotion.............................................................................................................................................................10

CSR Activities.....................................................................................................................................................11

Conclusion................................................................................................................................................................11

Recommendations...............................................................................................................................................12

Promotion and advertising strategy:..................................................................................................12

Financial strategy:..........................................................................................................................................12

Positioning Strategy:....................................................................................................................................13

Marketing Strategies:...................................................................................................................................13

Implementation.....................................................................................................................................................14

References...............................................................................................................................................................15

Appendices...............................................................................................................................................................16

Questionnaire....................................................................................................................................................16

Survey Results...................................................................................................................................................18

Executive Summary

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Purpose of the study

Purpose of this project is to study the strategies in terms of consumer behavior,
practiced by Meezan group in one of their diversified business segment of beverages
with a brand name “Cola Next” in Pakistan. Meezan group was established in 1951
and through stepping in textile industry and prior to Cola next Launch in 2016 it has
been renowned in other businesses with consumer products. This study is aimed for
collecting all success factors of cola next by analyzing the market and consumer
behavior towards it and what are the weaker areas that cola next needs to
strengthen to get desired market shares in Pakistan.

Field of research
Youth of Pakistan are the major consumers of soft drinks and the data which is
required to know the important aspects of this case study was acquired through the
questionnaire based on several questions about soft drink its acceptance and
customer perception about the soft drinks. the questionnaire was aimed to narrow
down the reasons and problems cola next needs to focus to revive its market share in
the market to survive the competition. The respondents were people aging from 18
to 40 who like soft drinks in their daily routine, occasions, school / colleges and
specialized events. Majority of them were students from Pakistan. So there's a
probability that data has provided a clear insights of local market of Pakistan and the
consumers satisfaction, behavior and patterns towards soft drink -Cola Next.
Market Analysis
By surveying the superstores of Karachi such as, Imtiaz super store, Naheeds, Chase
Up etc.

The issues and findings of the case study

This case study on cola next broadly covers the current situation and problem of cola
next in Pakistan which includes;
 What is the impact of consumer behavior on cola next?
 what are the gaps that cola next needs to identify in terms of segmentation
targeting and marketing?
 What is consumer perception about cola next?
 why cola next has not been penetrated so well in the market and why it has
recorded low growth in Pakistan.

Which theory based this case study

The Theory- Maslow's hierarchy of needs, is known as Highly useful framework for
the marketers that covers the broader range of customer needs which assist
marketers to design the products and then communicate them effectively to the
targeted consumers. The reason to choose this theory for brand cola next is that
different advertisements can serve different needs of consumers or may form a
stimulus to buy a product from Cola Next. The slogan of cola next "LEVEL BERHA
NEXT PER AA" emphasizes on the particular class of customers due to which other
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customers may feel left out and will not give a try to this product. This slogan reflects
a meaning that Cola Next is only for the upper class and not for the lower level
people which limits its market to the urban areas only and whole rural area
customer’s names are not associated with the advertisement campaigns of this
brand.
It may be assumed that consumers from rural areas will not be socially associated
with the brand Cola next because the marketing campaigns of cola next is not
appealing that particular class of consumers which is massive in size and can create
huge market share for cola next if captured or satisfied the need of that segment.

Findings
Cola next has used different techniques to create appeal for its customers through
Brand personification, packaging, advertising other promotional activities but it’s not
being penetrated into the market as PEPSI & Coca cola are. Through analyzing the
whole market of Cola Next by visiting super stores in Karachi and graphical
representation of data gathered from respondents of questionnaire highlighted the
key areas which needs improvement and reformation of strategies with respect to
the concepts of consumer behavior and Maslow’s theory of hierarchy of needs. The
findings with contrast of Course contents that is highly effective for any firm to keep
its product aligned in the competition.

Physiological needs
Cola Next appears as to serve the need for soft drink to
Elite class and all its promotional communication is
designed in that same way to cater the need of upper
class only. But as per the data we have gathered from the
respondents most of the people were not even aware
about the product Cola Next saying they haven't ever
tasted the Cola Next. The reason to this may be that
company has limiting the consumer's class in its
advertisement or they have no good positioning strategy
in market to occupy the space for display of their
products on eye level.

Consumer Perception About Cola Next

Fig:: 1b
Cola Next is relatively being rated as lower than Pepsi and coca cola, they perceive
about Cola Next is that it is low quality product in terms of taste. The quoted
statement is based on the data gathered from the questionnaire where customers
reflected their strong acceptance of product with better taste and they showed
desire to shift towards the cola drink which would be better in terms of taste. If The
majority is willing to shift for new Cola drink, then why Cola Next couldn't satisfy that
need of uniqueness desired by the consumers.

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It is assumed that in the brands of food or drinks, taste and quality is the core job of
product that is required by the customers in market. They asses the available
products on the bases of taste and quality same is in the Case of COLA NEXT in
Pakistan. As reflected through the Graphical data(Fig 1c) gathered from the targeted
audience 70.9% consumers would prefer to try new taste of Cola drink but COLA next
couldn't make these willing consumers to be frequent users of it. So Perceived value
and quality of Cola Next have
not been earning esteem in the market. whether customers are willing to shift for
good taste but they didn't choose COLA NEXT so frequent.
Furthermore, Elements of Perception were neglected by Cola Next such as:
1. Sensory Input: any unit that produces stimuli, may refers to Product,
features, packaging, quality etc. Cola Next is perceived low with respect to all
of these due to which consumers have no sense of urgency to try COLA NEXT.
Fig : 1c
2. The Absolute Threshold: is extent where one notifies a differentiation
between things. Cola Next advertisements and positioning strategies
becoming obsolete and even people are not noticing the product or its
availability around. To avoid the phenomenon national Brands keeps changing
their Ads so frequently or do Experiential Marketing campaigns to get
attention of consumers but Cola Next is not practicing such strategies for
survival.

Perceptual Selection
Customers don't avoid the solution which are readily available for their heightened
need. When we asked from consumers about what needs cola next may satisfy they
haven't recorded any selective perception towards Cola Next, this means that it is
not acquiring attention of the consumers and not becoming the alternate option to

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them instead of Pepsi, Coca Cola and others colas. The biggest reason to this is weak
availability of product in the mini marts, Local area general stores and Karyana
stores Weak distribution and logistics may cause the COLA Next to loose customer's
choice. Our random visits on nearest shops and Marts were made to find COLA NEXT
but it’s not available in non-famous sellers or small area shops and mini marts.

Halo Effect
PEPSI and COCA COLA have created halo effect in the market they are known for
their quality, taste and smart packaging, their Tins are highly admired by youth or
people aging from 18 – 40. Cola Next if far away from this race to stand out in
competition with Pepsi and Coca Cola. Apart from this this these both products are
available in every corner of the country whereas Cola Next is hardly to be found in
general stores of the residential areas and if seen in big marts or super stores
occupying very compromising space in lower level selves of side shelves as shown in
fig 1b.

Consumer Imagery
Refers to Cola Next's consumer’s perception about
all components of Cola Next including
1. Brand Image; Cola Next Brand is low
preferable by consumers of soft drinks in
Pakistan
2. Package Image; The packaging is reflecting
the copy-ism of coca cola and people consider
it the imitating factor which lowers the
packaging image. The same label pattern of
White test over Red background makes it
similar looking with coca cola (As shown in
figure).
3. Service Image: Needs are being served by
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Other competitors by offering cola drinks has very good image for them in
their offering but consumers for the same need are reluctant to buy COLA
NEXT.

Advertising Appeal

As per the respondents while buying a soft drink they don't prefer advertisement and
celebrity endorsement but what attracts them more is the unique taste, chilling
sense, quality of the drink, less hazardous for health and justified price. Cola Next
advertisements are expenses out more on hiring well known media celebrities but
it’s not effective until the quality of drink is not satisfying their need for unique taste
and better drink than PEPSI & COCA COLA.

It is observed that food consumption brands get success by delivering the

differentiated and better taste and how COLA NEXT can overcome the market of
PEPSI and COCA Cola without competing its tastes. They celebrity endorsement
cannot conceal the quality perception among consumers of soft drinks. Mass media
is being used by the mehran beveragses with good financial budget for promotion
and branding of cola next but the quality of drink is not getting improved
yet.whether respondent around 65% shared that they dont look advertisement to
buty soft drinks they buy it for its taste and quality to fulfill the desire and need.
As shown in the below figures Cola Next has focused more on adverstisement but the
need is not so urgent to make such advertisements instead of thses advertisement
they can make their R & D department to explore how the taste can be improved.

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The Majority soft drink users in Pakistan are preferring Pepsi and Coca Cola and
observed their advertisements they communicate joy and happiness through
showing their target consumers as youth enjoying college days or families
celebrating events which creates closer need stimuli for soft drink users and the
celebrity endorsement is not necessarily adopted by these two companies.

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Discussion
Cola Next is new entrant in Pakistan’s beverage industry launched in year 2016. It
has launched a wide range of soft drink flavor to attract every age group. As “Cola
Next” is a new entrant and it has to face a lot of challenges in order to compete with
other soft drink leaders in the Pakistani Beverage Market. In order to penetrate into
the market, they need to be innovative, low-priced and easily available so that
consumer could find value in their products.
Distribution Network
Cola Next’ has been targeting rural area people for it market and their
advertisements also emphasize on high cities. To cover the rural areas, the coverage
of product availability of key importance. The Cola Next distribution network is not
very effective as it is only available in super market and some selective soft drink
depots due to which their customer is unaware of its availability. The conducted
research shows that people have heard the name of Cola Next on advertisement but
they couldn’t try it as it was not commonly available. To overcome this problem, Cola
Next must strengthen its distribution network by increasing its supply and integrating
it with Mezan group’s other products. This strategy will help the Cola Next to build its
market image as market is aware if Mezan groups product and will build customer’s
confidence to at least try Cola Next beverages.
Market Placement
As Cola Next is only available in super markets of Urban Cities. The placement of
Cola Next is not on eye level shelves of the market. In fact, in many super markets,
The Cola next beverages are placed at the corner or lower shelves of the beverage
departments which also build customer perception about Cola Next as B grade
beverage. The Cola Next marketer must focus on the placements of Cola Next
beverage and should acquire premium shelves so customer would consider to try it.
This would cause an expense but would improve Cola Next image in the market.
Promotion
Another problem that Cola Next is facing is advertisement and promotion campaigns.
Cola Next is not investing enough in its promotion and advertising which has resulted
in less awareness among consumers. They are hiring well know Celebrities but still
their advertisement is tempting the consumer because of their Advertisement
strategy. They show celebrities doing stunts and promoting Cola Next but Consumer
took those advertisement as low quality adds. While Pepsi and Coca Cola are
producing high quality adds which target the emotions of the consumers such Coca
Cola’s add show a family time with their soft drinks strengthens their family bond or
Pepsi’s add shows emotional touch of taking care of poor people by free distribution
of meals. Furthermore, both Pepsi and Coca cola are also engaging youth by doing
different music shows such Coke studio by Coca Cola and Pepsi Battle of the bands.
Additionally, Pepsi and Coke have indulged their products in people mind by strategic
planning and advertisement. Pepsi also has sponsorship deals in international cricket
teams. The Pakistan cricket team is just one of the teams that the brand sponsors.
The team wears the Pepsi logo on the front of their test and ODI test match clothing.

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These marketing and promotion strategies gives a unique to edge to both the leaders
and to overcome this situation Cola Next must also come up with some similar
strategy.
CSR Activities
Cola Next is also not promoting any social events nor any CSR activities unlike Coca
cola and Pepsi. These CSR activities established an emotional impact on customer
and tempt them to support the brand. Cola Next must arrange the CSR activities for
its people to gain their trust.

Conclusion
As Cola Next is a new entrant in the market and in order to penetrate in the market
they need to understand and improve the consumer’s perception about their
product. They need to focus on the promotions an advertisement. The promotion
strategy should be changed from conventional marketing to experiential marketing.
They should arrange social events where they products should be launched. They
also need to improve their distribution network so that their product would be
available at every location where their competitors are present. Furthermore, they
also need to launch new products such as energy drinks and other new flavors in
their soft drinks so that they would get a competitive advantage over Pepsi and Coca
Cola.

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Recommendations
The mission of Cola Next is to create a strong consumer awareness towards a
completely new product from Cola Next, to establish a wide brand recognition
through the capture of market shares in the soft drinks segment, and to become the
top market leader in that particular segment

Promotion and advertising strategy:

The Cola Next should improve its advertising strategy based on AIDA model. To
attract more customers and increase its market share Cola Next should follow
following model.
 Awareness
 Interest
 Desire
 Action

Following mediums can be used for marketing

 Print media
 Social Media
 TV commercial
 Billboards and holdings

Most necessary Cola next should acquire noticeable place for display of its product in
malls and super stores, instead of hiring expensive celebrities to endorse their
product company should pay more to malls and super stores to place their drink on
EYE LEVEL to get noticed by everyone. Pepsi and coca cola puts much focus on this
area due to its great impact on sales of product .
The Cola Next should interact with its customer with the help of Social media and
listen to their requirement about Cola Next. This will greatly help Cola next to
understand customer’s perspective about their products and also help them to
increase their product quality. By advertisement on Billboards, TVC and print media,
customer will keep on hearing their products which will keep customer remember
their brand whenever customer would go for soft drinks purchase.

Financial strategy:
As every business company, the financial objectives of Cola Next is to increase its
profit and market share. The competitors of soft drink with Cola Next are Pepsi and
coke which are financially very strong. The main aim of Cola Next should not be too
earning from product in the beginning but to promote its product by every means.
Following are the expenses in manufacturing of soft drink.

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1. Manufacturing Costs – Variable Cost

2. Advertising and Marketing Budget – Fixed Cost
3. Administrative Overheads –
4. Distribution – Variable and Fixed

In order to penetrate in the soft drink market and increase its market share, Cola
Next should introduce good incentives for the distributors and also provide discounts
to its consumers. Cola Next must also increase distribution network so that products
would be available at all the relevant places such as restaurants, Hotels, Super
markets, mini marts and general stores etc. The company must also introduce
procedures which minimizes the manufacturing and administrative expenses
Positioning Strategy:
Cola Next soft drinks are available in different and attractive packaging. It is a local
brand competing with two international soft drinks brands Pepsi and Coca cola. Both
Pepsi and Coke have variety of flavors. Cola Next has also launched those flavors and
also launched some new flavors but the limitation is its availability in the market.
Cola Next is only available in urban cities in only selected super markets, it is not
available in all general stores and mini marts. Following is the complete range of soft
drinks offered by Cola Next.
 Cola Next (Original Cola Flavour)

 Cola Next Rango.

 Cola Next Fizup.

 Cola Next Anaar

 Cola Next Dare

 Cola Next Green Soda

 Cola Next Lychee.

Cola Next shall also add diet soft drinks in their product range so that consumers
who are diet conscious would also become the prospects of Cola Next

Marketing Strategies:
The Cola Next uses marketing strategies to differentiate its product from its
competitors to gain a competitive advantage. There are many strategies kept in
mind when selling a product. It includes pricing strategies, promotional strategies
and placing strategies. Cola Next’s pricing strategy is fine but Cola Next is very weak
in promotional and placing strategies. Cola Next should emphasis on advertisement
and availability of its product country wide which also include indirect selling. For
providing their product in good manner company should provide infrastructure these
includes:

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• Vizicoolers
• Freezers
• Display racks on eye Level
• Appealing bottles

Eye level shelves occupied by soft drink manufacturers

Implementation
First and foremost, product awareness is important for understanding
consumer behavior because it is impossible to understand consumer behavior
without ads. For example, after performing a survey and finding that there is
very little awareness of Cola Next, they need to show images of happiness
and togetherness, tradition and nationalism they must change their
advertising strategies because advertising is a critical tool for success in
today's economy.
They must plan promotional campaigns because advertising is such a vital
tool for success in today's economy. They can produce advertisements,
bumper prizes, and logos on caps and t-shirts, and they can distinguish their
business from its rivals by producing even stronger, engaging, and creative
marketing messages. They need to shift their attention away from profit
towards brand building.
The company can shift its target market from the upper to the middle and
lower classes, or it can target all three.
They need to update their logos and slogans in order to appeal to Cola Next
customers.
Company should convince retailers to have promotional tools decorating with
Cola Next logo and slogan and they should tell the retailers why these
elements are important, company and retailers can get benefit from this
activity also they need to take front places in supermarkets shelves which
attracts customers

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References
1. Maureen Taylor, (Fall 2000), Cultural Variance as a Challenge to Global Public Relations: A Case
Study of the Coca-Cola Scare in Europe, Public Relations Review, 26(3):277–293 , Elsevier Science
Inc. ISSN: 0363-8111

2. Dr.Vibhuti, Dr. Ajay Kumar Tyagi, Vivek Pandey (2014), “A Case Study on Consumer Buying
Behavior towards Selected FMCG Products”, International Journal of scientific research and
management (IJSRM) ||Volume||2||Issue||8||Pages|| 1168-1182||2014|| Website:
www.ijsrm.in ISSN (e): 2321-3418

3. https://colanext.com/cnws

4. Aslam, Manan & Bashir, Shahid & Sultan, A. & Ahmed, Umar. (2017). Consumer Demand for
Beverages in Pakistan. Cercetari Agronomice in Moldova. 50. 10.1515/cerce-2017-0020.

5. Shahzad, Faisal & Khan, Jamshed & Khattak, Mobeen & Shahzad, Muhammad. (2015). Impact of
consumer socialization on soft drink consumption and mediating role of consumer generational
behavior. British Food Journal. 117. 1205-1222. 10.1108/BFJ-08-2013-0219.

6. https://go.shr.lc/2UIC5pI

7. Broniarczyk, S. and Griffin, J. (2014) Decision difficulty in the age of consumer empowerment,
Journal of Consumer Psychology, 24 (4), pp. 608-625.

8. Solomon, M. R. (2014) Consumer behavior: Buying, having, and being. Engelwood Cliffs, NJ:
Prentice Hall.

9. Thogersen, J. & Jorgensen, A. K., & Sandager, S. (2012) ‘Consumer decision making regarding a
“green” everyday product’. Psychology & Marketing, 29(4), pp. 187-197

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Appendices
Questionnaire
Age Group:
 10 – 20
 21-30
 31-40
 41+
Gender:
 Male
 female
Do you prefer soft drinks over tea/coffee/Juice?
 yes
 No
How often do you have soft drinks per week?
 Once a week
 Twice a week
 Thrice a week
 Everyday
 Rarely
Which soft drink flavor do you prefer most?
 Cola (Pepsi/Coke)
 Soda (Sprite/7up)
 Orange (Fanta/Marinda)
Have you tasted Next Cola?
 Yes
 No
What’s your opinion about Next Cola taste?
 Excellent
 Good
 Satisfactory

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 Less Satisfactory
 Bad
Do you switch from regular soft drink if you find a new soft drink having a better
taste?
 Yes
 No
Do you buy soft drinks based on their promotion campaigns or advertisement?
 Yes
 No
Does brand endorsement from a celebrity helps you to choose your products?
 Yes
 No
How do you view the mass-media advertisement of Next Cola?
 Excellent
 Good
 Satisfactory
 Less Satisfactory
 Bad
Do you consider diet calories before purchasing soft drinks?
 Yes
 No
Do you compare offered discount on soft drinks before purchasing?
 Yes
 No
Do you think the price of soft drinks are economical in Pakistan?
 Yes
 No
Survey Results

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