1

ANALYSIS OF SOFT DRINK INDUSTRY

AND THE FACTORS AFFECTING
CONSUMER BEHAVIOUR
Group 11
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Agenda

 Introduction.
 Research objectives.
 Summary of literature review.
 Research framework.
 Hypothesis.
 Research methodology.
 Data analysis & Interpretation.
 Key findings & Conclusion.
 Managerial Implications.
 Limitations & Future scope.
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Introduction

Market Share
 Definition of soft beverage.
 In 2018, the global beverages industry is
forecasted to have a volume of 994.1 billion litres,
an increase of 25.1% since 2013. Coca-
Cola
 Shift from matured to emerging markets. Others
23%
32%
 Soft drinks is the largest segment of the global
beverages industry, accounting for 34.4% of the
industry's total value. Malaysia
Pepsi Co.
Diary
 Carbonates is the largest segment of the soft Industry 20%
drinks market in Singapore, accounting for 55.8% Pte Ltd
of the market's total value.
7% Groupe
 Key Player: Coca Cola, F&N. Fras
er Danone
& 6%
Source:Neave
Euromonitor International, Soft Drink Industry
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Research Objectives

 To study the soft drink industry and analyze the changing trends in it.
 To investigate customers’ preferences and the consumption pattern of
the individuals.
 To identify factors considered by current buyers before deciding to
purchase any soft drink.
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Summary of literature review

 4 Ps of marketing techniques.
 Key Players.
 Factors affecting Consumer Behaviour.
 Value, Variety, Occasion and Experience.
 Impact of Neuromarketing on Consumer behaviour.
 Buying process model.
 Health impacts of carbonated drinks.
 Marketing Techniques- Coca Cola
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Research Framework

Fizz level, Sweetness,

Colour, Innovation,
Brand, Health PRODUCT
Options

TV/Magazine/Radio,
Social Media, Peer
PROMOTION
WILLINGNESS
View, Hoardings, TO
Packaging & Size PURCHASE
Purchasing Power, PRICE
Cost of the
product
Availability at retail
outlets, Public PLACE
Places, Vending
Machines, Location
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Hypothesis

 H0: The most important factors affecting the willingness to buy soft drink
are Price and Taste.
 H1: The most important factors affecting the willingness to buy the soft
drink are Flavour, Health and Packaging style.
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Research Methodology

Development of Data Collection (Primary)

Proposal
Qualitative and Qualitative
analysis of industry and
consumer behaviour
Surveys & Industry Expert
Modal Validation opinions
Questionnaire

Study of consumer behaviour Analysis of data

Research Objective (Secondary)

Interpretation of findings

Secondry Research Research Methodology and

Conclusion
(Litrature Review) Framework
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Data analysis and Interpretation

 Chi Test Analysis

 Regression Analysis
 PESTLE analysis
 BCG Matrix
 SWOT Analysis
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Consumer Profiling

14
12
12
10
10
8
Frequency 8
6
6
Gender Distribution 4
2 2
Income Distribution
2
0%
0
Below 16 16-25 25-35 35-45 45-55 55 & 10%
17% Below $1000
above
Age $1000-$2500
Females $2500-$5000
15%
44% Males 35% $5000-$7500
$7500-$10000
56%
$10000 & above
23%
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Frequency Analysis

 T- Test Analysis

Factor T Stat Value T- Critical

Price 9.896905832 2.262157163
Product 9.593371916 2.262157163
Promotion 6.702500324 2.262157163

 All the Factors are Significant

 Price : Price of the soft drink has a negative correlation on demand.
 Product: Health and Flavor is the most important reason in choosing a
product.
 Promotion: Packaging style is also an important factor.
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Regression Analysis

 Regression Analysis revealed that

• Price of Soft Drink
• Flavour of Soft Drink
• Health factor of the of Soft Drink
• Packaging of Soft Drink
are significantly important in influencing the willingness to purchase Soft Drink.

 P-Values
 Packaging 0.00019
 Flavour 0.02743
 Health factor 0.000045
 Price 0.00116
 Cut off value for P-Value: 0.05
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Key Findings and Conclusion

Disposabl
e
Income
 Major Factor Affecting the Consumer
behaviour:
 Income
 Variety Packaging,
Flavour & Variety of
 Packaging Healthy soft
choices drinks
 Health Factor

Regiona
l
brands
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Managerial Implications

• Through our researches we found out that juice based drinks are gaining preference over carbonated drinks. Thus
Coca Cola should launch more products like Minute maid to cater for such health conscious customers.

• Powerade ION4 is an isotonic drink specially launched for athletes which replenishes ions loss like sodium, magnesium,
potassium and calcium which occurs due to high strenuous activities. Extensive marketing and promotion techniques
must be implemented so as to increase the awareness of such products in people.

• New products like Aquarius which serves as both mineral water and energy drink has a huge potential to grow as it
serves as a dual folded purpose of hydrating as well as providing one with important minerals, nutrients and electrolytes.
Such products should be extensively promoted and sales should be boosted.

• Extensive R&D must be done to check the feasibility of the market scenario and how to increase the market dominance
of Coca Cola and its line of products.
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Limitations of study & Future Scope

 The research would be conducted in a very limited time. A few weeks may not be enough to do a
deep analysis and find answers to all the research questions in the most accurate manner.
 The accuracy of the responses would be questionable. Their answers/choices may be biased or vary as
per the time, mood or location.
 The industry contact could not be contacted due to paucity of time.
 The sample size of the survey would be too small to represent the general perception of the customer
base.
FUTURE SCOPE
 Study of modern marketing techniques and effect on consumer behaviour.
 Follow the changing business strategies by the market leaders of soft drink industry.
 Highlighting functionality of the soft drinks.
 More extensive research must be conducted on factors like – Taste, Sweetness, Fizz etc. so that suitable
changes be made to capture the market.
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References

Camacho, L. (2008). Market Research Databases: Comparison of Mintel Reports

Academic,
Market Line Business Information Center, and Global Market Information
Database. Journal of Business & Finance Librarianship, 13(2), 157-161.
 Euromonitor International. (2014, January). http://www.euromonitor.com/soft-
drinks-in-singapore/report Retrieved from Euromonitor Passport GMID
database.
 Jee Woong J. Choi, Earl S. Ford, Xiang Gao3 and Hyon K. Choi. Sugar-sweetened
soft drinks, diet soft drinks, and serum uric acid level: The third national health
and nutrition examination survey.
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Key Milestone and Timeline

13-Jan 2-Feb 22-Feb 14-Mar 3-Apr 23-Apr 13-May

Start of project/Conceptulize Research topic

Submit SOP

Statement of Purpose

(SOP)
Select
Relevant Data Research
material

Draft Proposal Preparation

Finalize proposal and Proposal Submission

Draft Evaluation By Mentor

Research in primary and secondry sources of Data

Field Visits and Internal reviews

Mid Term Review

Preparation

Mid Term Review

Field research conclusion and finalizing report