consumer perception with respect to brand awareness and brand loyalty; a case study of coke &...

Consumer perception with respect to

Brand Awareness and Brand Loyalty

A comparative study Brands of Coke & Pepsi

Engr. Hafeez Ur Rehman

Sales Engineer Mil-tek Middle East, Dubai, UAE B.Sc. B.E. Electronics Engineering, UCET, IUB Pakistan MS Electrical Engineering, UET Lahore x-Fellow PIEAS MBA Specialization in Marketing, Management information systems, Management, Virtual University of Pakistan

DEDICATION

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

involved and Complete this project.

ACKNOWLEDGEMENT

p and above everything, all prays go to ALLAH, I find no words to express my deepest sense to

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

supervision and exactitude, needed throughout the course of the project.

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

addition to Marketing field beneficial to human beings and economy of my country.

Engr. Hafeez Ur Rehman

Executive Summary

"Perception" defined as a "process in which we select, organize, and interpret the input

from their minds to give a unique meaning or order to the world around us". Perception

includes the perceiver, the target of perception, and the situation.

In order to evaluate and compare the consumer perception for brand awareness and brand

loyalty for two famous brands of soft drinks i.e. Coke Coca Cola and Pepsi, during this

project research will further extend the effect of consumer perception of Coke and Pepsi

will be determined for consumer association to these brands.

The project will be aimed to do comparative study of two viewpoint of marketing. i.

Consumer perception about brand Loyalty ii. Brand awareness.

Relation of Consumer perception about the loyalty and their awareness for the selected

brands of Coke and Pepsi are compared.

Methodology for the research will be adopted to track down the measurement of

consumer’s perceived loyalty of Coke and Pepsi. Consumer’s awareness about these

brands and then making a comparison between both brands in order to evaluate the

consumer’s perception, loyalty and brand awareness.

Primary data about consumer’s perception about Coke and Pepsi brands will be

collected through the following sources,

1. Consumers of Coke

2. Consumers of Pepsi

The data from these primary sources will be collected by using the questionnaires.

Secondary data will be collected and extracted from the secondary sources that already

exist and contains relevant information about the Coke and Pepsi brands related to

consumer’s perceptions about loyalty and brand awareness.

Following will be the mostly utilized sources for secondary data.

1. Previous research on consumer’s perception about brand’s loyalty & awareness

2. Official statistics/ reports about brands

3. Internet Surveys/Web information

4. Brand Reviews / Evaluation Reports

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.

Consumer’s perception is something which consumer’s perceive about a brand in

their mind and it has a significant impact on a brand. Perception of consumer does

not necessarily have very much impact on the actual performance of the product;

whereas it is based on the current reputation of brand and product image with

respect to the knowledge of the consumers.

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.

Page | 8 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

• Relating / bonding with Brand

• 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/


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.


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]

According to business dictionary consumer perception can be defined as

“a customer's impression, awareness and/or consciousness about a company or its

offerings.” [2]

Future purchasing decisions are affected by the perception of quality of any product

or brand along with its origin and other attributes. [3]

Consumer perception is typically affected by means of awareness of a brand i.e.

Advertising, Brand Reviews, PRs, Media, Personal experiences and other

channels. [4]

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.

In terms of sales, finance, advertising etc consumer’s perception, awareness and

loyalty becomes very much important about any 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.

Attaining perception by setting different forms of objectives or actual quality.

Results in higher level abstraction rather than a specific attribute of a product or

brand and a global assessment that in some cases usually made within a consumer's

evoked set. [5]


http://www.businessdictionary.com/definition/customer.html

http://www.businessdictionary.com/definition/awareness.html

http://www.businessdictionary.com/definition/company.html

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.


http://en.wikipedia.org/wiki/Marketing

http://en.wikipedia.org/wiki/Brand_name

1.3 Brand/Company’s introduction:

A General Trading Company of United Emirates Arab, known as Al Ahlia Co

(PVT) formed a partnership with Gulf line of Oman to creat Al Ahlia Gulf Line

General Trading (PVT) LTD in 1988 and started production of Can and bottle Line

for Coca Cola. In 2003, for the very first time CoCa Cola plant was commissioned

in Middle East in four stages. Got their ISO 9001:2000 and in 2004 obtained

HACCP certification (Hazard Analysis Critical Control Points Certification)[18]

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]

1.3.1.2 Major brands of Coke:

There are different brands of the Coke Company, which are currently in market

worldwide. Coke is engaged in carbonated as well as Other drinks.

Following are important brands by company Page | 13

Consumer perception with respect to Brand Awareness and Brand Loyalty : A comparative study of Coke & Pepsi

• Coke (Coke)

• Sprite

• Fanta

• Diet coke

• Coke classic

1.3.1.3 Major brands of Coke:

Coke has following major brands in the UAE market.

• 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.

1.3.2.2 Major brands of Pepsi:

There are different brands of the Pepsi, which are currently in market worldwide.


http://www.coca-colacompany.com/brands/coca-cola/

http://www.dietcoke.com/

http://www.minutemaid.com/

http://www.coca-colacompany.com/brands/sprite/

http://www.sprite.com/

Pepsi not only deals in the carbonated drinks but also other drinks.

Dubai Refreshment Corporate (DRC) was allotted as a sole franchisee and

distributor of Pepsi Co in 1962 although the factory established in 1959. It became

a Public Shareholding Company in 1994. Its strategic location on the main Sheikh

Zayed Road is itself a landmark.[20]

Dubai Refreshment Corporation Brands

Carbonated Drink Non-Carbonated Drink Drinking Water

Pepsi Lipton Ice Tea Lemon Aquafina

Water

Pepsi diet Lipton Ice Tea Peach

Pepsi Max

Mirinda Vit C

Mirinda Citrus

Mirinda Green Apple

7up

7up Free

Mountain Dew

Shani

1.4 List of competitors:

Both the brands of Pepsi and Coke are from the Beverages industry. Following are

the list of beverage companied which can be each other’s competitors.

The Coca-Cola beverages

• PepsiCo

• Thunder Cola

• Barbican Page | 15


• Holsten

• Red Bull

• Monster Energy

• Power horse

1.5 Objectives of Project:

Mainly the project objective is to evaluate the consumer perception about the brand

with respect to Brand Awareness and Brand Loyalty towards these brands.

Following are major objectives of the research,

1. To determine consumer perception with respect to Brand Awareness and

Brand Loyalty of Coke

2. To determine consumer perception with respect to Brand Awareness and

Brand Loyalty of Pepsi

3. To compare the Brand Awareness, Brand Loyalty with respect Consumer

perception of both the brands.

1.6 Significance:

Consumers are always backbone of the business. Any brand owes the position in

market according to, how consumers perceive the brand. For consumer perception

the brand awareness and loyalty is deep seated in consumer’s mind about that

brand. Thus, brand loyalty is the extent and everything which the consumer

imagines and thinks about that brand, good, bad or ordinary.

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 Page | 16


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

The Coke Brand Page | 17


2.1 Marketing mix:

Marketing Mix is a combination of marketing tools which are utilized by firms to

follow its marketing objectives in market.

Marketing Mix contains 4 major tools which are also as following:

4P s i.e. Product, Price, Place and Promotion.

• Product is the most basic element of marketing. If the product is strong in

value then can become a vital tool of marketing. It comprises product

design, quality, features, branding, and packaging.

• Price also plays important role, Prices are determined with view to the

buying power of the potential consumer, it is another most critical tool.

Price also includes discounts, allowances, credit terms and payment period.

• Place or distribution channel determines the accessibility to the consumer

and it is also key marketing mix tool. Place includes logistics, storage,

transportation and making it available for the customer. The greater you

cover the bigger the market coverage you have and so is the sales turnover.

• Promotion, publicity, advertising, sale promotion is the fourth marketing

mix tool. Promotion includes activities that the company undertakes to

communicate in order to promote its product to target market. Direct

marketing, sales promotion, advertising, sales force, public relations are

some examples.

2.1.1 Coke – Product:

Product’s secret formulation is a business secret of Coke which in terms is related

to ingredients and ratio of its products i.e. Colour, flavor, sugar and carbonic water

etc.

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


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.

2.1.2 Coke – Price:

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.

2.1.3 Coke – Place:

Coke as a multinational company as set standards for huge network of

distributions worldwide and in UAE. Coke utilizes the manufacturing and

distribution agencies, local shops network, restaurants etc. It has also attached itself

with outlets in institutes, universities colleges.

2.1.4 Coke – Promotion:

Coke is using the following promotion campaigns.

1. Advertising (TV, Bill Boards, Radio Adds, Affiliation with other brands)

2. Personal selling (Exhibitions or Special Campaigns on events)

3. Sales promotion (Discounts, jumbo packs, buy one get one free)

4. Publicity and public relations (Mass marketing based on building bonds)

Coke is utilizing the Event organizational activities i.e. Coke studio, different

seasonal events such as Eid, Basanet, Cricket Matches etc


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

Obviously, the Coke is mostly using the method of Differentiated Marketing,

because it is catering the needs of different market segments with diverse strategies

of different flavors, diet coke, varied price range, packaging, different sizes (1.5,

regular, Tin pack) and labels etc.

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.

2.3 Target marketing strategies

Target marketing is the strategy to specifically focus on the particular market

segment which can be more productive, beneficial and result oriented. The Target

Market for Coke is very wide because it has devised different strategies for

satisfying the needs of varied customers. It ranges from Regular Coke to Flavored

beverages and Health-Conscious diet beverages.

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.

2.4 Brand Loyalty of Coke 2.4.1 Defining Brand Loyalty:

Brand Loyalty refers to the continuous process of a customer to repeatedly buy a


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.

2.4.2 Elements of Brand Loyalty

2.4.2.1 Personal Service

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.

2.4.2.3 Value Added Services

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


services with best price to maintain brand loyalty and brand image.

2.4.3 Impact of Brand equity

2.4.3.1 Customer Satisfaction

Customer Satisfaction is the core marketing objective. It is the measure of how

well the customer is satisfied with the offerings of Coke. The brand needs to exceed

the specified satisfaction goals of customers because the number of satisfied

customers and Customer satisfaction ratio highly affects the brand equity.

2.4.3.2 Customer Retention

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.

2.5 Brand Awareness of Coke 2.5.1 What is Brand awareness

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.

2.5.2 Why Brand Awareness is Important

Brand awareness is crucially important because it not only ensures attraction of

new customers but it also encourages them to become loyal with brand. With good

brand awareness, we get increased sales leads and repeated businesses, because the

customers are more likely to attach with the brands they can trust and identify

easily. According to AAU (Awareness, Attitudes & Usage) Metrics, the customers

usually go through the sequential process of awareness, initial purchase of product

and loyalty to brand. Therefore, brand awareness is the key factor to build brand Page | 22


loyalty.

2.5.3 Building Brand Awareness

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.

Coke is implementing many promotional tools for brand awareness such as

Advertisement, Publicity, Promotional Offers and Specialized Labeling on

particular occasions like Eid etc. Recently, the Coke is using sense of

belongingness in its advertising to promote friendships, brotherhood and family

attachments in order to boost the Brand awareness.

Chapter No. 3

Competitor Analysis

3.1 Introduction of the competitor firm

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.

3.1.1 Major brands of Pepsi:

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

3.2 Marketing mix

Marketing Mix is the basic marketing tool with 4 major Marketing Functions often

referred as 4 Ps that is Product, Price, Place & Promotion.

• Product is the basic object or service being sold by the company to

customer. It includes product design, features, quality, branding, packaging

labeling and support services. The Pepsi products are well planned and

have good image in Market. The Product formula is a business secret for

both the Pepsi & Coke which is not the publicly opened. Rather Pepsi

products are also diversified into different flavors, labels packaging & sizes

based on customer preferences.

• Price is something or the amount of some money paid by the customer on

exchange of a product. It includes different Pricing Strategies with

discounts, credit terms, payment period and allowances. The Price of Pepsi

Products & Coke Products is almost same for each product. In earlier days,


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.

3.3 Market segmentation strategies

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


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.

3.4 Target marketing strategies:

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.

3.5 Brand Awareness of Pepsi 3.5.1 What is Brand awareness

Brand awareness is the public existence or recognition of the Brand. In other

words, how much the customer is aware about the Brand, is termed as Brand

Awareness. Pepsi has maintained very good awareness for its brand in the market.

3.5.2 Why Brand Awareness is Important

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..

3.5.3 Building Brand Awareness

Building Brand Awareness is a process to advertise and publicize the brand to a

level that every customer of the market segment should know about the brand and

its products. Building Awareness involves messages, logos, symbols and taglines


as well. Pepsi is also keenly engaged in building its Brand Awareness to become

Competitive. If customers are unknown of the brand, how they can attach with the

brand. Pepsi is also using advertising intensively for building its brand awareness.

Besides this, various other promotional strategies like sales promotion,

sponsorships, and seasonal campaigns are also used to build brand awareness.

3.5.4 Defining Brand Loyalty:

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.

3.5.5 Elements of Brand Loyalty

3.5.5.1 Personal Service

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.

3.5.5.3 Value Added Services

Value-Added Services on part of Pepsi include Jumbo promotions, Ramzan

Package This value-addition is key element for brand loyalty because it develops

the customer’s lifetime experience with the brand. Pepsi is also conscious for its

Value-Added Services strategy.


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.

3.5.6 Impact of Brand equity

3.5.6.1 Customer Satisfaction

Customer Satisfaction is the measure of fulfillment of customer’s needs and how

well customer is happy with offering of Pepsi. Pepsi is also taking initiatives to

maintain higher levels of customer satisfaction to exceed the expectations as it is

key ingredient for Brand Equity. More satisfied customers, higher the brand equity.

3.5.6.2 Customer Retention

Higher customer satisfaction leads towards the customer retention. Customer

Retention refers to the loyal customers who remain with same brand with their

lifetime good experience of brand offerings.

Chapter No 4

Methodology Methodology

This project does the comparative study of following perspective of marketing

related to brands,

i. Consumer perception

ii. Brand Awareness Page | 28


iii. Brand Loyalty

A Methodology will be designed, implemented and followed to analyze the

consumer’s perception about brands, their awareness and loyalty towards these

brands so that a comparison can be made between these both brands.

4.1 Data Collection Sources

In order to acquire information for conclusions and findings during this project,

different sources are used which include the primary data and secondary sources.

4.1.1 Primary sources Primary data for the research is gathered through the following primary sources,

1. Consumers of Coke

2. Consumers of Pepsi

The data is collected through the questionnaires.

4.1.2 Secondary sources: Also some secondary sources will be used to obtain the Secondary data i.e.

1. Any previous research data

2. Official statistics about Coke and Pepsi

3. Brand Reviews/ Brand Official reports

4. Web information/ Internet Survey

4.2 Data Collection Tools/Instruments The tool used to gather the data for the project was Questionnaires, A questionnaire

designed to gather data about the brand awareness, brand loyalty and brand

perception of consumers and any other relevant data.

4.3 Sampling:

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. Page | 29


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.

4.3.2 Sampling Technique Although the target population base of the sample population is huge due to wide

spread use of Pepsi and Coke.

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]

Reasons behind using the convenience sampling technique are,

• Convenience of reaching to the sample population

• Involves low cost of doing research

• Saving the time

• To reduce the biasness effect

• For fast, easy, cost effective research

4.3.3 Data Collection/Fieldwork Questionnaire is used in order to collect the data from the target population i.e.

consumers of Pepsi & Coke , distributor in the field .

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


Chapter No 5

Data processing, analysis & interpretation 5.1 Fieldwork/Data Collection:

5.1.1 Data Collection

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 Page | 31


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.

Quality of data was assured through following ways,

1. By utilizing and assuring authenticity of sources

2. Assuring Data consistency

3. Data Re-checking and error omission

4. By avoiding any biasness by consumers

5. By protecting data loss

6. By avoiding personal biasing toward Coke or Pepsi brands

5.1.3 Time Constraints & Data Source Management

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.

5.2 Project Questionnaire:

Following project questionnaire was used for the project.

All the questions were designed to include following dimensions of Consumer

behavior, perception and association towards Brands.

• Consumer perception

• Brand loyalty

• Brand awareness

• Repeat purchase behavior

Below given Questionnaire was used to collect the data.

Survey Questionnaire

The following survey is being conducted for academic purposes only. Page | 32


Information provided will be kept private and confidential. Your Participation

in this regard will serve as a helping hand in the knowledge creation process.

Please take a few moments to complete this research survey.

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

Which of the following brand of cold drink do you buy mostly?

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.

I usually purchase the same brand within a product class.

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.


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.

5.2.1 Questions about Target Segments

Following Questions were included in Questionnaire, in order to sort out the target

segments.

Question No. 1

Gender of Respondent Male Female

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. Page | 34


As these brand products fall in category of Fast Moving Consuming Goods thus

the respondents were included from Genders, different ages and different

occupations.

5.2.2 Questions about Brand Loyalty& Brand Awareness:

To evaluate the brand awareness, loyalty and purchase behavior to determine

which brand do they prefer and how often they purchase that brand, following

questions were asked

Question No. 4

Which of the following brand of cold drink do you Buy mostly? a. Coke b. Pepsi

Question No. 5 How often do you purchase the brand (Frequency of purchasing the brand)?

a. Twice in a day b. Once in a day c. Once in two days d. Occasionally

5.2.3 Questions about Brand Awareness:

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.

5.2.4 Questions about Brand Loyalty:

Responses for following Questions were collected through questionnaire on Likert

scale. to determine the consumer’s loyalty with the brand,

• 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.

• I automatically knew which brand to buy.

• When think about that product line, I always have the brand in mind.

5.3 Data Processing, Analysis & Interpretation: Question No. 1

Brand Selection of Respondent (Which of the following brands of cold drink do you Buy mostly?)

a. Coke b. Pepsi

Frequency Table for Brand Selection:

Options Frequency Percentage

Coke 65 65%

Pepsi 35 35%

Total 100 100%

Table 1: Frequency Table for Brand Selection

Graph for Brand Selection:

Interpretation:

Out of 100 respondents of survey, Consumers who chosen the Coke were 65%. Consumers who chosen the Pepsi were 35%. Thus, Majority of the people has chosen the Coke brand.

Question No. 2

Pepsi 65%Coke 35%Total 100%

65%

35%

100%

0%

20%

40%

60%

80%

100%

120%

Pepsi

Coke

Total


Age of Subject/Respondent a. 20-30 b. 30-40 c. 40-50 d. Above 51

Frequency Table for Subject Age:


20-30 30 30%

30-40 17 17%

40-50 13 13%

Above 50 7 7%

Total 100 100%

Table 2: Frequency Table for Age

Graph for Subject Age:

Interpretation:

Out of 100 respondents, • 20-30 Year consumers were 30 % • 30-40 Year consumers were 17 %

20-30 30-40 40-50 Above 50Male 19% 11% 11% 6%Female 11% 6% 2% 1%Total 30% 17% 13% 7%

19%

11% 11%6%

11%6%

2% 1%

30%

17%13%

7%

0%5%

10%15%20%25%30%35%

M…


• 40-50 Year consumers were 13 % • Above 50 consumers were 7 %

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:


Male 60 60%

Female 40 40%

Total 100 100%

Table 3: Frequency Table for Subject’s Gender

Graph for Subject Gender:

Interpretation:

Among total 100 respondents, • 60% were male • 40% were females.

Question No. 4

60%40%

0%

20%

40%

60%

80%

Male Female

FemaleMale


Occupation of Subject/Respondent (what is your Occupation?)

Frequency Table for Subject Occupation:


Student 45 45%

Govt. employee 15 15%

Business man 13 13%

Household 10 10%

Others 17 17%

Total 100 100%

Table 4: Frequency Table for Subject’s Gender

Graph for Subject Occupation:

Interpretation:

Out of 100 respondents • 45 % Consumers were Students • 15% Consumers were Govt. Employee • 13 % Consumers were Business man • 10% Consumers were Household • 17% were from other occupations Thus, the sample population consists of the people from the different walks of life.

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

Student Govt. Employee Business man Household OthersMale 28% 13% 11% 9% 13%Female 17% 2% 2% 1% 4%Total 45% 15% 13% 10% 17%

28%

13% 11% 9%13%

17%

2% 2% 1% 4%

45%

15% 13% 10%17%

0%

10%

20%

30%

40%

50%

M…


d. Occasionally

Frequency Table for Purchase Frequency of the brand:

Options Frequency Coke

Percentage Coke

Frequency Pepsi

Percentage Pepsi

Twice in a Day 17 26% 4 11%

Once in a Day 37 57% 16 46%

Once in two days 8 12% 13 37%

Occasionally 3 5% 2 6%

Total 65 100% 35 100%

Table 5: Frequency Table for Subject purchase Frequency

Graph for Subject Purchase Frequency:

Interpretation:

According to results for purchasing frequency, • 26 % consumers of Coke buy it twice in a day, • 57 % consumers of Coke buy it once in a day • 12 % consumers of Coke buy it once in two days • 5% consumers of Coke buy it occasionally

While for Brand of Pepsi

• 11 % consumers of Pepsi buy it twice in a day • 46 % consumers of Pepsi buy it once in a day • 37 % consumers of Pepsi buy it once in two days • 5% consumers of Pepsi buy it occasionally

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

Twice in a Day Once in a Day Once in two Days OccassionalyCoke 26% 57% 12% 5%Pepsi 11% 46% 37% 6%

26%

57%

12%5%

11%

46%

37%

6%

0%

10%

20%

30%

40%

50%

60%

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:

Option Description Frequency Coke

Percentage Coke

Frequency Pepsi

Percentage Pepsi

A Strongly Agree 1 2% 1 2%

B Agree 4 5% 1 2%

C Neutral 8 11% 5 14%

D Disagree 13 20% 7 21%

E Strongly Disagree

40 62% 21 61%

Total 65 100% 35 100% Table 6: Frequency Table for Question No. 6

Graph:

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

Strongly Agree Agree Neutral Disagree Strongly DisagreeCoca Cola 2% 5% 11% 20% 62%Pepsi 2% 2% 14% 21% 61%

2% 5%11%

20%

62%

2% 2%14%

21%

61%

0%10%20%30%40%50%60%70%

Coca Cola

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:


Percentage Coke

Frequency Pepsi

Percentage Pepsi


B Agree 19 29% 13 37%

C Neutral 6 9% 3 8%

D Disagree 3 4% 1 3%

E Strongly Disagree

1 2% 1 3%


Graph:

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

Strongly Agree Agree Neutral Disagree Strongly DisagreeCoke 56% 29% 9% 4% 2%Pepsi 48% 38% 8% 3% 3%

56%

29%

9%4% 2%

48%38%

8%3% 3%

0%10%20%30%40%50%60%

CokePepsi


• 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:


Percentage Coke

Frequency Pepsi

Percentage Pepsi

A Strongly Agree 1 2% 1 3% B Agree 3 4% 1 3% C Neutral 5 7% 2 6% D Disagree 15 22% 10 28% E Strongly Disagree 41 65% 21 60% Total 65 100% 35 100%

Table 8: Frequency Table for Question No. 8

Graph:

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,


2% 4% 7%

22%

65%

3% 3% 6%

28%

60%

0%10%20%30%40%50%60%70%

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:


Percentage Coke

Frequency Pepsi

Percentage Pepsi



Graph:

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



56%

35%

7%2% 0%

55%

31%

11%3% 0%

0%10%20%30%40%50%60%

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:


Percentage Coke

Frequency Pepsi

Percentage Pepsi



Graph:

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


50%

25%

13%8% 4%

49%

20% 16%10%

5%

0%10%20%30%40%50%60%

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:


Percentage Coke

Frequency Pepsi

Percentage Pepsi

1 Strongly Agree 53 81% 26 74%

2 Agree 11 17% 8 23%

3 Neutral 1 2% 1 3%

4 Disagree 0 0% 0 0%

5 Strongly Disagree

0 0% 0 0%

Total 65 100% 35 100%


Graph:

Interpretation:

While asked about if at the place of purchase, if consumer could visually detect his preferred brand without much effort. Coke consumers were

• 80 % strongly agreed • 17 % agreed • 2 % remained neutral by not agreeing or disagreeing • 1% disagreed • 1% strongly disagreed



80%

17%2% 1% 1%

72%

23%

3% 2% 1%0%

20%

40%

60%

80%

100%

Coke

Pepsi


• 72 % strongly agreed • 23 % agreed • 3 % remained neutral by neither agreeing nor disagreeing • 2% disagreed • 1% strongly disagreed

These results show that about both Coke and Pepsi brands, the consumer is loyal and awareness is very good and consumers recognize their favorite brands without any difficulty.

Question No. 12

I can quickly recall the symbol or logo of brand when I am not at the place of purchase.

Frequency Table:


Percentage Coke

Frequency Pepsi

Percentage Pepsi

1 Strongly Agree 38 58% 19 54% 2 Agree 22 33% 9 26% 3 Neutral 3 5% 5 14% 4 Disagree 1 2% 1 3% 5 Strongly Disagree 1 2% 1 3% Total 65 100% 35 100%


Graph:

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


58%

33%

5% 2% 2%

54%

26%14%

3% 3%0%

10%20%30%40%50%60%70%

CokePepsi


• 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:


Percentage Coke

Frequency Pepsi

Percentage Pepsi


B Agree 14 21% 8 22% C Neutral 2 3% 1 3% D Disagree 1 2% 1 3% E Strongly Disagree 0 0% 0 0%


Graph:

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



74%

21%

3% 2% 0%

72%

22%

3% 3% 0%0%

20%

40%

60%

80%

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.


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


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.

xi. Research leads to conclude, by asking about discrepant information’s effect on

chosen brand’s purchase, that the consumer awareness is important thing and company must spread the information about the brand in precise and transparent way, as it has a greater impact on consumer’s loyalty if some information reveal on consumer before purchase, even though sometimes these are in accord with brand, but as these are revealed just in time to consumer so he might not understand or interpret these ones at sudden, so it spoils the loyalty and consumer perception about brand can change.

6.2 Recommendations:


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

o Difficulty in accessing the concerned participants/respondents as they were

scattered and people were more often unwilling to respond and fill the questionnaire.

o At several stages access to the required information was difficult due to several reasons i.e. privacy issues, company policies, non-disclosure confidential data from companies, researchers etc.

o Time was the biggest limitation which has reduced the scope of study and forbade to dip into more detailed analysis and to reach the more segments of the populations. As research scope was very large as compared to the time allowed for completion of the research. If the time was flexible there were more aspects which can be reached through this research by enlarging the sample size and dimensions of study.

o Among major hurdles were the lack of budget available for travelling to coverage the more urban and rural areas and also to utilizing the more concise information and professional sources i.e. IEEE libraries and other sources which are available after paying. So like every research, if budget was more


readily available, more professional and useful dimensions could be added to this research.

o Scope of study was limited to only perceived quality and consumer’s brand association which if was made broad with allowing other dimensions, could make the research more elaborative and useful.


Part II

I. Introduction of the student

Last Degree Obtained:

Bachelor of Arts from Punjab University

Organization’s Name:

Mil-Tek Middle East LLC

www.miltek.ae

Designation:

General Manager

Experience (Years)

12 Years in Dubai, UAE

Page | 54


http://www.miltek.ae/

II. Appendix/Appendixes Research Questionnaires:


III. Figures & Tables: Table 14: GLOBAL MARKET SHARE OfCoke

Non-alcoholic

drink

All commercial Beverages

10 year compound annual growth

5-year compound annual growth

2001 annual growth 2002 2002

Company

Industry Company

Industry Company

Industry Company share

Company share

Company per capita

Income 6% 5% 5% 5% 4% 4% 18% 9% 70

Figure 1: Market Competitors

Figure 2: Packaging Range of Coke


Figure 3: Packaging Range of Pepsi


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