Coca-Cola as a Global Brand in Relation to Perception and Preference of Consumers in Karachi Part II (1)

CHAPTER # 1: Problem and Its Background

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Management Problem: The marketing problem faced by Coca Cola beverage private limited is the fact that  being the first soft drink brand and and enjoying a high market market share once. They They are now  struggling to keep up this relative market share. With sales declining in each quarter and as a result coke has a low market share in Pakistan, (especially (especially in Karachi). As a result “low sales in conjunction with the sales of Pepsi”.

Research Problem: Considerable Considerable considerations have been given to the distribution problem and have come up with the following research problem. Coca-Cola as a global brand in relation to perception and preference of  consumers in Karachi.

Hypothesis:  At least 30% consumers consumers prefer prefer Coca Cola as their their favorite CSD (Carbonated (Carbonated Soft Drink)

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Significance and Restraints of the Study: i.

Significance

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From study the company will be able to identify the reasons for their low sales

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The company will be informed about the changes that they need to make in their strategies so as to increase sales.

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The company will be able to make informed and guided decisions so as to solve their management problem

ii.

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Restraints

 We will have to select select large retailers retailers or restaurants restaurants properly. properly.

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There will be biases among the consumers

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There is very little consumer loyalty loyalty to the brand and so respondents respondents might not  be able to answer answer questions properly. properly.

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Brief History of Carbonated Soft Drink Industry  The history of the carbonated soft drink market is an interesting one that sheds some light on the industry structure and conduct of today. The first marketed (noncarbon ( noncarbonated) ated) soft drinks actually appeared in the seventeenth century (they were made from water and lemon juice sweetened with honey). In Paris, vendors carried tanks of lemonade on their backs and dispensed cups to customers on the streets. Carbonated soft drinks date back to the mineral water found in natural springs – scientist discovered that carbon dioxide was behind the bubbles in natural mineral  water. Over time, scientists and entrepreneurs entrepreneurs devised various methods for adding carbonation to beverages. In 1767, the first drinkable man made glass of carbonated water was created by Dr. Joseph Priestly in the United Kingdom. In 1798, the term soda water was first coined, and in 1810, the first U.S patent was issued for the “means of mass manufacturer manufacturer of imitation mineral waters” waters” to Simon and Rudnell of Charleston, South Carolina. However, carbonated carbonated beverages did not achieve great popularity in America until the 1830s, when an easily mass manufactured apparatus for making carbonated water was created and offered for sale and soda fountain owners. By 1920, the US census had reported that over 5,000 bottlers were in operation. The first ginger ale was created in Ireland in 1851, the first root beer was mass produced for public sale in 1876, the first cola-flavored beverage was introduced in 1881, and the first “no-cal” beverage was introduced in 1952. By the 1950s, American pharmacies with soda fountains became a popular part of  culture and persisted en masses until the late 1960s. Overtime, customers soon wanted to take their “health” drinks home with them and soft drinks bottling industry grew from consumer demand. Today, the interplay between the “Big Three ” players (Coca-cola, Pepsi-cola and Cadbury Schweppes) on the manufacturing side, the bottles on the distribution end, the retailers downstream downstream and the end-use consumers is a complex and ever-evolving maze of horizontal and vertical relationship that requires a deep understanding understanding od the players as well as the dynamic interactions across each. 4

 A Brief Introduction Introduction of the Coca Cola Company  Company  Coca-Cola, the product that has given the world its best-known taste was born in  Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufact manufacturer urer,, markete marketerr and distribu distributor tor of non-alc non-alcoholi oholicc beverage beverage concentr concentrates ates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain retailers and fountain  wholesalers.  wholesalers. The Company’s beverage products comprises of bottled and canned soft drinks drinks as well well as concentr concentrates ates,, syrups syrups and not-ready not-ready-to-dr -to-drink ink powder powder products products.. In addition to this, it also produces and markets sports drinks, tea and coffee. The CocaCola Company began building its global network in the 1920s. Now operating in more than than 200 200 count countrie riess and produ producin cing g nearl nearly y 400 brand brands, s, the the Coca-C Coca-Cola ola system system has has succ succes essf sful ully ly appl applie ied d a simp simple le form formul ula a on a glob global al scal scale: e: “Pro “Provi vide de a mome moment nt of  refreshment for a small amount of money- a billion times a day.” The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. More than anything, that that syst system em is dedi dedica cate ted d to peop people le work workin ing g long long and and hard hard to sell sell the the prod produc ucts ts manufactured by the Company. This unique worldwide system has made The Coca-Cola Compan Company y the world’ world’ss premi premier er soft-d soft-drin rink k enter enterpri prise. se. From From Boston Boston to Beijin Beijing, g, from from Montreal to Moscow, Coca-Cola, more than any other consumer product, has brought pleasure to thirsty consumers around the globe. For more than 115 years, Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day. The Company aims at increasing shareowner value over time. It accomplishes this by   working with its business partners to deliver satisfaction and value to consumers consumers through a worldwide system of superior brands and services, thus increasing brand equity on a global basis. They aim at managing their business well with people who are strongly committed to the Company values and culture and providing an appropriately  controlled environment, to meet business goals and objectives. The associates of this Company jointly take responsibility to ensure compliance with the framework of policies and protect the Company’s assets and resources whilst limiting business risks.

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FMCG Industry in Pakistan Fast Fast Movin Moving g Consum Consumer er Goods Goods (FMCG) (FMCG),, also also known known as Consum Consumer er Packa Packaged ged Goods Goods (CPG) are products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products. The Pakistan FMCG industry witnessed significant changes through the 1990s. Many  players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories.  As a result, most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market. By the turn of the 20th century, the face of the Pakistan FMCG industry had changed significantly. With the liberalization and growth of the Pakistan economy, the Pakistani customer customer witnessed witnessed an increasi increasing ng exposure exposure to new domestic domestic and foreign foreign products products through different media, such as television and the Internet. Apart from this, social changes such as increase in the number of nuclear families and the growing number of   working couples resulting in increased spending power also contributed to the increase in the Pakistani consumers' personal consumption. The realization of the customer's growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. These changes had a positive impact, leading to the rapid growth in the FMCG industry. Increased availability of retail space, rapid urbanization, and qualified manpower also boosted the growth of the organized retailing sector. Though the absolute profit made on FMCG products is relatively small, they generally  sell in large numbers and so the cumulative profit on such products can be large. Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass layoffs every time the economy starts to dip. A person may put off buying a car but he will not put off having his dinner. Unlike other economy sectors, FMCG share float in a steady manner irrespective of  global market dip, because they generally satisfy rather fundamental, as opposed to 6

luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Pakistan Economy. The main contributor, making up 32% of the sector, is the Karachi and Lahore region. It is predicted that in the year 2010, the FMCG sector will be more boosted. The sector being one of the biggest sectors of the Pakistan Economy provides up to 1.5 million jobs. (Source: CCBPL, Monthly Circular, March) The FMCG sector consists of the following categories:

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Personal CareCare- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries, Deodorants and Perfumes, Paper products (Tissues, Diapers, Sanitary products) and Shoe care; care; the major players players being; UniLever UniLever Pakisan Pakisan Limited, Limited, Colgate, Colgate, Marico and Procter & Gamble.

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Househol Household d CareCare- Fabric Fabric wash wash (Laund (Laundry ry soaps soaps and synth syntheti eticc deterg detergent ents), s), House Househol hold d

cleane cleaners rs (Dish/ (Dish/Ut Utens ensil/ il/Fl Floor oor/To /Toile ilett

clean cleaners ers), ), Air fresh freshene eners rs,,

Insectici Insecticides des and Mosquito Mosquito repellan repellants, ts, Metal Metal polish polish and Furnitur Furnituree polish; polish; the major players being; UniLever Pakistan Limited, Colgate-Pamolive and Ricket & Colman.

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Brande Branded d an and d Packa Packaged ged foods foods and bever beverage ages s- Healt Health h bevera beverages ges,, Soft Soft drinks, Staples/Cereals, Bakery products (Biscuits, Breads, Cakes), Snack foods, Chocolat Chocolates, es, Ice-cream Ice-creams, s, Tea, Coffee, Coffee, Processe Processed d fruits, fruits, Processe Processed d vegetabl vegetables, es, Processe Processed d meat, meat, Branded Branded flour, flour, Bottled Bottled water, water, Branded Branded rice, rice, Branded Branded sugar, sugar, Juices; the major players players being; UniLever Pakistan Pakistan Limited, Nestle, Nestle, Coca-Cola, Cadbury, Pepsi.

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Spirits and Tobacco; Tobacco; the major players being; PTC and Lakson Tobacco.

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Beverage Industry in Pakistan In Pakistan, beverages form an important part of the lives of people. It is an industry, in  which the players constantly constantly innovate, in order to come up with better products to gain more consumers and satisfy the existing consumers.

BEVERAGES

Carbonated

Cola

Non-Carbonated

Non-Cola

Non-Cola

The beverage industry is vast and there are various ways of segmenting it, so as to cater the right product to the right person. The different ways of segmenting it are as follows:

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Energy and sports beverages

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Natural and Synthetic beverages

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In-home consumption and out of home on premises consumption. consumption.

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 Age wise segmentation segmentation i.e. beverages for for kids, for adults and and for senior citizens citizens

Segm Segmen enta tati tion on base based d on the the amou amount nt of cons consum umpt ptio ion n i.e. i.e. high high leve levels ls of  consumption consumption and low levels of consumption. consumption.

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If the behavioral patterns of consumers in Pakistan are closely noticed, it could be observed that consumers perceive beverages in two different ways i.e. beverages are a luxury and that beverages have to be consumed occasionally. These two perceptions are the biggest challenges faced by the beverage industry. In order to leverage the beverage industry, it is important to address this issue so as to encourage regular consumption as  well as and to make make the industry more more affordable. affordable. Four strong strategic elements to increase consumption of the products of the beverage industry in Pakistan are:

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The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages.

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The credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have while consuming the beverages.

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Consumer education is a must to bring out benefits of beverage consumption  whether in terms of health, health, taste, relaxation, relaxation, stimulation, refreshment, refreshment, well-being well-being or prestige relevant to the category.

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Communication Communication should be relevant and trendy so that consumers are able to find an appeal to go out, purchase and consume. consume.

The beverage market has still to achieve greater penetration and also a wider spread of  distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and sales growth in turn to add up to the overall growth of the food and  beverage industry industry in the economy.

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CHAPTER # 2: Review of Related Literature and Company  Background

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LITERATURE REVIEW: -A study of factors responsible for brand preference in FMCG sector” The purpose of this paper is the study of factors responsible for brand preference in FMCG products, increasing competition, more due to globalization, is motivating many companies to base their strategies almost entirely on building brands. Brand preference means to compare the different brands and opt for the most preferred  brand. This brand brand preference is influenced influenced by various various factors.  According to this this study many factors factors were find out for for preferring a brand brand like Brand persona Brand constancy  Brand loftiness Brand value. In the identification of factors affecting the brand preference, it was concluded that  brand persona is the most effective factor that affects the brand preference. This brand persona deals with the personality aspects or the external attributes of brand, thus it can  be said that consumer consumer prefer any any brand by looking looking at the external attributes attributes of a brand. brand. - journal of IBA IBA vol. 5 no.1, Jan-June Jan-June 2008

Colour and flavour rule consumer preferences: The intensity of colour and the flavour are the key drivers behind consumer acceptance of beverages, says a new case study involving DANON DANONE. E. But But packag packaging ing and labell labelling ing are not as impor importan tantt for  winning over consumers, according to findings published in the  journal Food Quality and Preference, The study involved consumers at different stages of development and highlights the importance of  adopting a “sensory marketing approach,” said the researchers from French research organisation Adriant, the University of Rennes 1, DANONE R&D, and Institute Paul Bocuse. “Companies need to continuously innovate to maintain market leadership,” wrote the rese resear arch cher ers. s. “Whe “When n the the mark market et is over overlo load aded ed the the chal challe leng ngee cons consis ists ts in crea creati ting ng innovative products able to attract and satisfy consumers.” consumers.” “This experiment showed the feasibility of the proposed multi-sensory design method based on mixed qualitative and quantitative approaches.” The study also demonstrates the importance of  flavour and colour selection for new products. The globa globall flavou flavours rs mark market et was was bee been n valued valued at some some US$18b US$18bn n in 2006 2006 (Busin (Business ess Insights). Meanwhile, the value of the international colourings market was estimated at around $1.15bn in 2007 (€731m), up 2.5% from $1.07bn (680m) in 2004, according to 11

Leathe Leatherhe rhead ad Food Food Intern Internat ation ional al (LFI). (LFI). Natur Natural al colou colours rs now make make up 31 % of the colourings market, compared with 40% for synthetics, according to LFI.

Bombarding the senses By choosing to formulate a new beverage, the researchers noted that the new product  would need to be differentiated differentiated by improving improving the sensory characteri characteristics. stics. Four Four fact factor orss were were iden identi tifi fied ed for for the the form formul ulat atio ion: n: four four colo colour ur inte intens nsit itie ies) s),, four four flavourings, two label types (soft versus hard), and two pack sizes (standard versus oversize). By using both quantitative (hedonic testing) and qualitative (focus groups) approa approache ches, s, the resea researc rcher herss found found that that “the “the main main factor factorss which which drive drive consu consumer mer preference for this concept are colour intensity and flavouring”. Indeed, colour intensity  accounte accounted d for 43 % and flavour 32 % of the consumer consumers’ s’ overall liking. liking. “Pack “Pack size and label type are taken into account by the consumer to a lesser extent,” they added. “This methodology of a qualitative screening associated to a conjoint analysis on relevant sensory attributes has shown good performances to fit consumers’ expectation: it has now to be reproduced, as every brand, concept and product is a unique combination designed for a specific consumer group,” concluded the researchers Source: Food Quality and Preference  Volume 19, Issue 8, Pages Pages 719-726  by Stephen Stephen Daniels, Daniels, 07-Oct-2008 07-Oct-2008

Taste or health: A study on consumer acceptance of cola drinks This study examined the relative contributions of taste and health considerations on consumer liking and purchase intent of cola drinks. Eight types of commercial cola drinks were evaluated by 305 adult consumers who also completed a brief questionnaire on food habits. Data were analyzed using factor analysis. Results revealed that purchase intent of cola drinks was strongly related to degree of liking and to several key sensory  attributes including saltiness, drinks flavor and greasiness. These variables emerged as the first factor in the analysis, suggesting that consumers perceive these characteristics as being most important in their choice of cola drinks. Factor 2 described a health dimension and was related to respondents' attitudes toward fat in the diet. Factor 3 comprised two remaining sensory attributes (color and crunchiness), which apparently   were of minor importance importance to the respondents. respondents. These data suggest that in spite of current current concern about reducing dietary fat, health remains secondary to taste in the selection of  cola drinks for consumers in this population. Source-Beverly J. Tepper and Amy C. Trail Journal of Food Science and Technology, 15 September 1998 .

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“con “consu sum mer products”

awaren reness ess

and

cons consum ump ptio tion

patte atter rn

of

food food

This paper aims to investigate the degree of brand awareness of various food products in relation to background and education of the household, the consumption pattern of   various food products consumed consumed by respondents respondents in the light of their areas, income income levels and education. a sample of 200 respondents comprising 100 form rural area and 100 from urban area were taken. Data are analyzed with the help of mean. SD, co –efficient of variance-test and f-test. The finding of this study reveals that there is low degree of brand awareness in rural areas, whereas there is a moderate degree of brand awareness in urban India. The highly  educated rural and urban respondents have high degree of brand awareness for many  food products, and the less educated rural and urban respondents have low degree of   brand awareness awareness for many food food products. - Journal of IMS vol. 3 no.1, Jan-June 2007

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COMPANY PROFILE Coca-Cola Beverage Private Limited Company Background Coca-Cola is a carbonated carbonated soft drink sold in stores, restaurants and vending machines in more than 200 countries. It was produced by The Coca-Cola Company in United States in 1886, which is often referred to as simply Coca-Cola or Coke. Coke is the world's most recognizable recognizable brand. Coca-Cola was bought out by businessman Asa Griggs Candler, who purchased the Coca-Cola formula from Dr. John Pemberton, a pharmacist pharmacist from Atlanta  who invented Coke formula formula as a medicinal medicinal tonic. For a little little over $2000, Candler Candler  became the owner owner of today’s most valuable brand. brand. His marketing marketing tactics led Coke to its its dominance of the world soft drink market throughout the 20th century. Although faced  with critiques of of its health effects and various allegations allegations of wrongdoing wrongdoing by the company, Coca-Cola has remained a popular soft drink to the present day. The company  actually produces concentrate concentrate for Coca-Cola, which is then sold to various Coca-Cola

 bottlers throughout the world. world. The bottlers, bottlers,  who hold territorially-excl territorially-exclusive usive contracts contracts with the company, company, produce finished finished product in cans and bottles from the concentrate concentrate in combination with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-Cola in cans and  bottles to retail retail stores and vending vending machines. Such Such bottlers include include Coca-Cola Enterprises, which is the single largest Coca-Cola bottler in North America, Australia,  Asia and Europe. The Coca-Cola Coca-Cola Company Company also sells concentrat concentrate e for fountain sales to to major restaurants and food service distributors. The Coca-Cola Company has, on occasion, introduced introduced other cola drinks under the Coke  brand name. The The most common common of these is Diet Coke, Coke, which has become become a major diet cola but others exist, including Caffeine Free Coke, Cherry Coke, Coca-Cola Zero and coke with lemon. The Coca-Cola Company owns and markets other soft drinks that do not carry the large Coca-Cola brand marking, such as Sprite, Fanta and others, but the Coca-Cola Company's trademark trademark name can usually be found somewhere on the bottle. 14

Company Goal The Company is committed to continuously building their presence and strengthening strengthening their position in the market by delivering quality products. The extensive sales and service staff follow a special standard of service to be able to meet customer satisfaction. satisfaction. Mission Statement “The basic proposition of our company is simple, solid and timeless. When we bring refreshment, value, joy and fun to our stakeholders, then we successfully nurture and protect our brands, particularly Coca-cola. Coca-cola. That is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business.” 1 Everything we do is inspired by our enduring mission: •

To Refresh the World; in body, mind, and spirit.

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To Inspire Moments of Optimism through our brands and our actions.

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To Create Value and Make a Difference everywhere we engage.

 Vision of of the Company  Company  •

To achieve sustainable growth; we have established established a vision with clear goals.

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Profit: Maximizing return to shareowners while being mindful of our overall responsibilities.

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People: Being a great place to work where people are inspired to be the best they  can be.

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Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples’ desires and needs.

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Partners: Nurturing Nurturing a winning network of partners and building mutual loyalty.

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Planet: Being a responsible responsible global citizen that makes a difference

Objectives 1

Sandy Allan President & CEO, Coca-Cola Inc.

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Coca-Cola’s objectives are to encourage the target audience to switch brands, make the purchase, and create a preference in the market for the product as opposed to its competition. They feel there is much in the world to celebrate, refresh, strengthen and protect, based on that they believe that they should provide a soft-drink to the entire global community which is environmentally safe and accepted. Coca-Cola’s view on civilization is that they must strive to belong to every contemporary  society, helping to support the population by supplying the population with jobs and also refresh and entertain the local people. The basic objective of Coke being that “Think Globally, Act Locally.” Furthermore the brand has been established for a while with a red and white logo incorporating incorporating a font and wave - they execute it through all advertising mediums and sponsorships sponsorships though their favorite is actually getting Coca-Cola owned fridges into distribution points that they give for free, provided the fridge sticks at least 85% of  Coca- Cola owned brands.

Brand Hierarchy  16

The Brand-Product Matrix helps to highlight the range of products and brands sold by  the Coca-Cola Company.

The Coca-Cola brand consists of these major brands which slightly reflect a basic portion of the brand they offer. As said earlier Coca-Cola has more than three hundred  brands in their portfolio. portfolio.

Target Market & Segmentation 17

Today’s youth are accreting their independence at an earlier age, voracious consumers of technology and music. They have more choice over the brands they own than previous generations. generations. In a research it was found that there were over 10 million over 7-19 year old in Britain alone, directly responsible for over £ 11 billion in disposable income and indirectly involved in much greater levels of expenditure. Being intoned with the youth market is crucial. It is very necessary to understand their lifestyles, lifestyles, interests and behaviors but at the same time understands the values that drive them, their need for individuality, belonging and acceptance. acceptance. Tapping in to these deeper level values will retain Coca-Cola’s appeal to the new generations. “If you get your youth marketing marketing 1% wrong, you might as well get it 100% wrong, because your brand will look  like your drunk, uncle trying to dance at a disco.”2 Segmentation Marketers no longer talk about the average consumer or even limit their analysis to only a few market segments. Rather, they are increasingly combining several variables in an effort to identify smaller, better defined target groups. This is called Multi- Attribute segmentation. segmentation. Thus Coke company may not only identify the youth but within that group associate with entertainment. The consumers look up to the coke company to entertain them. The Coca-Cola Company’s brands connect with people in the future. Music, Film, TV, the internet and computer game are key ingredients in today’s recipe for living. As Coca-Cola wants to be a part of this it considers entertainment entertainment as the new rule of  engagement. Positioning Coke has a different taste compared to its competitors. It has a much stronger taste. Moreover most of the people associate themselves with coke on the basis of its tradition and heritage. The famous Coca-Cola logo when seen by consumers they immediately  recall and recognize the brand and feel a sense of loyalty towards it. Cokes frame of  reference also includes brands like Pepsi, RC, Dr. Pepper and Water. The point of parity  of Coke in the beginning and today was its different taste which was a little stronger than 2

Tim Millar, Head of Planning.

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others. And on the contrary Pepsi’s being sweet. The point of difference created by Coke  was that it gave meaning meaning to the brand in terms terms of association association with an attitude attitude that how  life must be led, entertained and enjoyed.

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Brand Equity 

 A brand is a name or or symbol used to identify identify the source of a product. When developing developing a new product branding is an important decision. The brand can add significant value  when it is well recognized recognized and has positive positive associations associations in the mind of the the consumer. This concept is referred to as Brand Equity. It is an intangible asset that depends on associations made by the consumer.  When a consumer consumer thinks of a drink, drink, Coca-Cola should should come to mind. This This is the aim of  creating association association with the consumer of Coke. Consumers should associate to Coke not only as a CSD but also an attitude and a way of life.

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The strategy for Coke is based on the three A’s; Availability, Affordability Affordability and  Acceptability.  Acceptability. While these provided provided for tremendous tremendous growth they also also led to entry   barriers.  barriers. The mantra for Coke today today is the here P’s Preference, Preference, Pervasive Pervasive penetration and Price Related Value. If Coke was another soft drink company, it would have defined its frame of reference as the cola market or a soft drink market or even a beverage market. But Coke thinks of its  business and its its market share share in terms of “Share “Share of human liquid consumption” consumption” which which makes water a competitor. In fact the general philosophy being that Coke won’t be satisfied until there is a Coca-Cola faucet in every home. Coke’s mantra is “With an arms reach of Desire.”

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SWOT Analysis Strengths a. World World largest largest soft drink drink company  company  Coke is the world’s largest soft drink company with a 51 % share of the worldwide soft drink market.  b. “Direct store store door” delivery delivery DSD Coke offered “direct store door” delivery DSD which involved route delivery sales people physically physically placing and managing the soft drink brand in the store. c. Bran rand im image age Coca-Cola has been a complex part of American culture for over a century. The product's image is loaded with over-romanticizing, over-romanticizing, and this is an image many people have taken deeply to heart. The Coca-Cola image is displayed on T-shirts, hats, and collectible memorabilia. memorabilia. This extremely recognizable recognizable branding is one of Coca-Cola's greatest strengths. "Enjoyed more than 685 million times a day around the world Coca-Cola stands as a simple, yet powerful symbol of quality and enjoyment.

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d. Coca-Col Coca-Cola's a's bottlin bottling g system system  A strong force behind behind Coke's global global success is its ownership interest interest in and partnering partnering  with bottling bottling and canning operations operations world-wide (bottling (bottling ownership ownership assets are 28% of  Total Assets). The company maintains business relationships relationships with three types of bottlers (percentage depicts worldwide unit case volume sales breakdown by bottling partners): 

Independently Independently owned bottlers, in which the Company has no ownership, interest (25%)



 Anchor bottlers, bottlers, in which the Company Company has invested invested and has a noncontrolling controlling ownership, interest (59%)



Bottlers in which the Company has invested and has a controlling ownership interest (16%)

Coke's bottling companies / partners are large, geographically diverse, with strong financial resources for long term investment - providing Coke with strong strategic  business partners partners and local local access on every every major continent. continent. Coke needs its bottling bottling partners to be committed to individual, profitable profitable growth in order to help Coke meet its  worldwide production, production, distribution, distribution, and marketing marketing goals. e. Sponsorship of sporting events

Coca-Cola was the first-ever sponsor of the Olympic games, at the 1928 games in  Amsterdam  Amsterdam and has been an Olympics Olympics sponsor sponsor ever since. This This corporate corporate sponsorship included the 1996 Summer Olympics hosted in Atlanta, which allowed Coca-Cola to spotlight its hometown. Since 1978 Coca-Cola has sponsored each FIFA World Cup and other competitions organized by FIFA. In fact, one of the FIFA tournament trophy: FIFA   World Youth Championship Championship from Tunisia in 1977 to Malaysia Malaysia in 1997 was was called "FIFA "FIFA Coca Cola Cup". In addition, Coca-Cola sponsors the annual Coca-Cola 600 for the NASCAR Nextel Cup auto racing series at Lowe's Motor Speedway in Charlotte, North Carolina. Coca-Cola has a long history of sports marketing relationships, which over the  years have included included Major League Baseball, Baseball, the National National Football League, League, National Basketball Association and the National Hockey League, as well as with many teams  within those leagues. leagues. Coca-Cola is the the official soft drink drink of many collegiate collegiate football teams throughout the nation. 23

f. Th The e ori origi gina nall for formu mula la Coca cola is stick to its 99 year old Cola formula. This formula is the basic reason why  people are stick to the coke. Coke has tried to change this formula but loyal customers  want the same taste taste and formula. formula. g. Sh Shap ape e of the the bot bottl tle e The curve shape bottle of Coke is most liked by people around the world as compare  with Pepsi’s bottle. bottle. Most of the people people like the package package of Coca-Cola best.48% people people like it. It has only 32% people prefer the package of Pepsi-Cola. So the design of PepsiCola's package is not as attractive as Coca-Cola. It still needs to be improved.

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 Weaknesses  Weaknesses a. Stic Stick k to to the the cola cola Coca cola is just stick to the cola drinks on the other hand Pepsi is continuously  exploring new avenues. Coca-Cola, Coca-Cola Cherry, Coca-Cola with Lemon, Coca-Cola C2, Coca-Cola with Lime, Coca-Cola Raspberry, Coca-Cola Citra etc. Though, new drinks are also being launched by Coca Cola, but this process is very slow.  b. Adaptation Adaptation to changing changing environment environment is is slow as compare compare with with Pepsi Coca Cola was very slow and reluctant to change as compare with Pepsi. Pepsi is always ahead with Coke like they first introduce 26 – ounce bottles to the market, targeting family consumption, consumption, while Coke stayed with its 6.5 – ounce bottle. Pepsi launched its “Pepsi Generation” campaign that targeting the young and young at heart. Pepsi’s ad agency created intense commercial using sports cars, motorcycles, helicopters and catchy slogans. Pepsi worked with its bottlers to modernize plants and improve store delivery services. By 1970, Pepsi’s franchise bottlers were generally larger compared to Coke bottlers. c. Sa Salles focus cus The main distribution channel for soft drinks was the supermarket. Soft drinks were among the five largest selling product lines sold by supermarkets, traditionally traditionally yielding a 15 to 20 % gross margins (about average for food products). Pepsi had focused on sales through supermarkets supermarkets and retail, while coke had dominated fountain sales. d. Pack Packag agin ing g size size Over the last several years biggest customers, like supermarkets, big retailers like WalMart and grocery stores, have been merging, buying each other and otherwise combining at a very rapid rate. Today there are fewer chains than a couple of years ago,

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 but they tend to be a lot bigger and spread over much larger regions. regions. That fundamentally fundamentally changed the bottling business. Today size drives success. The bigger the better. Because that’s how you achieve true economies of scale in manufacturing and distribution. Equally important, size enables a  bottler to provide provide the service that large, large, geographically geographically diverse retailers retailers need.

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Opportunities a. Increasing per capita cola consumption consumption in the International International

market

Internet promotion such as banner ads and keywords can increase their sales, and more computerized computerized manufacturing and ordering processes can increase their efficiency.  b. New drinks The industry is creating new categories of soft drinks, such as energy drinks, and by  diversifying within existing ones. For example, the leading carbonated carbonated soft drink  companies have recently introduced products with 50% less sugar that fall mid-way   between regular regular and diet classifications. classifications. The alternative beverages industry industry is predicted to be a $ 20 billion industry. It includes: Juices, teas, bottled waters, sports and energy drinks and new age drinks3

3

 Beverage World  World 3/15/97, 3/15/97,  p. 53, 55, 57.

27

28

c. Growin Growing g snacks snacks foo food d indus industry  try  The snack food industry is growing at a rapid speed especially in the International market people have started consuming highest amount of snack chips.

d. Bo ttl ed

 water  While carbonates carbonates are still the the largest soft drink drink segment, bottled bottled water is catching catching up fast, with an average of 58 liters consumed annually per capita. Overall, bottled water represents the fastest growing soft drink segment, expanding at 9 percent annually. annually. This growth is being partially driven by increasing awareness of the health benefits of proper hydration.

29

e. Increasi Increasing ng worldwid worldwide e popul populatio ation n The population around the world is growing especially in the third world countries. On the other hand these countries have relatively low soft drink consumption ratio. Below chart shows the population statistics in 2025:

Country China India Brazil Pakistan Bangladesh Nigeria

1996 1,217.6 949.6 160.5 147.7 119.8 103.9

2025 1,492.0 1,384.6 246.5 232.9 153.1 142.1

Pakistan’s Soft Drinks Industry Is Set to Experience Volume Sales Growth of 30.5% to 2010.

Threats a. Changing consumer beverage preferences, preferences, featuring a shift toward health-oriented wellness drinks 30

In much of the developed world, a significant portion of the population is overweight or obese. This includes two-thirds of Americans and an increasing increasing number of Europeans. Consequently, Consequently, many people have started to actively manage their weight and change their lifestyles, a shift that is reflected in their choices in the beverage aisles: •

Demand has increased for beverages that are perceived to be healthy 

•

Energy drink consumption has also climbed, due to the increasingly active lifestyles of teenagers

People’s perception is changing towards cola drinks. Now people are thinking that cola drinks promote obesity, tooth decay, increase caffeine dependence, bone weakening and increase the chase of diabetics. Until the 1980s, soft drinks obtained nearly all of their food energy in the form of refined cane sugar or corn syrup. Today high fructose corn syrup (HFCS) is used nearly exclusively as a sweetener because of its lower cost. However, HFCS has been criticized as having a number of detrimental effects on human health. This trend towards healthier drinks has created a number of new categories, and changed the consumption trends of the beverage industry as a whole. While previously  dominated by carbonated soft drinks, the industry is now more evenly balanced between carbonates, carbonates, and product categories with a healthier image, such as bottled water, energy  drinks and juice:

 b.

Continuall Continuall  y  increasing retailer strength

 With

Wal-Mart (as

an

example)

leading the charge, the worlds dominant retailers are demanding better service and shorter order-to-delivery cycles from soft drink companies. This is dramatically  31

reshaping the industry, forcing soft drink companies to become more efficient, while taking pricing power out of their hands. The dual need for improved supply chain agility  and cost efficiency is challenging suppliers to reevaluate the ways In which they plan and manage their supply chains, as they constantly search for approaches that will help them achieve the rock-bottom prices and operational excellence now expected in the industry. Furthermore, Furthermore, the growth of private-label products is encouraging manufacturers manufacturers to take a number of steps to compete more effectively. Increasingly, they are turning to innovation and new product introduction as a means to achieve real differentiation as  well as growth. growth. Branded manufacturers manufacturers are also also looking to get closer closer to the consumer, consumer,  with many of the larger larger ones piloting piloting direct-to-consumer direct-to-consumer marketing marketing approaches. They  They  are also trying to better understand the in-store consumer experience by monitoring the execution of in-store activities. Nevertheless, Nevertheless, many suppliers are losing brand equity. In recent years, a couple of factors have been fueling the growing competition between manufacturers and retailers: •

Retailers are using their power to set higher standards for marketing and operational excellence, excellence, including escalating demands for improved service quality and shorter order-to-delivery cycles from manufacturers and distributors.

•

Because of their direct relationships relationships with consumers, retailers have a deeper knowledge of consumer behavior.

c. Com Competi petiti tion on  Also, many new new drink competitors competitors have appeared appeared gradually. Since the the market size size is saturated already, with more competitors, the Coca Cola Company should have innovative ideas in order to make its past customers to stay and grab more future customers In the beverage manufacturing industry, competition is growing due to the following factors: •

Constant demand for new niche products related to consumer preferences preferences for healthier and more diversified offerings

32

•

Industry consolidation, consolidation, which has significantly raised the bar for the “scale needed to compete”

•

The growth of private-label products.

d. Beverage safety concerns and more-stringen more-stringentt regulations regulations Governments around the world are concerned about food safety and quality. Periodically, Periodically, safety failures make big news in the global press. Amid this growing concern, regulators regulators are cracking down on sanitation and a variety of other food-safety  requirements. e. Coca-Cola as a political and corporate symbol

The Coca-Cola drink has a high degree of identification with the United States itself,  being considered considered by some an "American "American Brand" or to a small extent extent as an item representing representing America. There are some consumer boycotts of Coca-Cola in Arab countries due to Coke's early investment in Israel during the Arab League boycott of  Israel (this contrasts sharply to Pepsi which stayed out of Israel). Mecca Cola and Pepsi have been successful in the Middle East as an alternative. Mecca Cola and Zam Zam cola are some of the examples f. Counterfe Counterfeit it product products s especial especially ly in third third world world countr countries ies There are two types of counterfeiting going on: One in which the manufacturers manufacturers pass-off product of a similar name and in other fills spurious stuff into coke and Pepsi bottles. There are few reasons one is that there may   be a demand and supply supply mismatch, mismatch, the other is Pepsi and and Coke are giving relatively relatively low  margins to retailers are compare with counterfeiters. In smaller towns, rural areas, at  bus stands and railway railway stations stations where consumers consumers are in a hurry, hurry, spurious cold drinks drinks are rampant. The counterfeiters manufacture for less than a rupee and sell for Rs 10. Thus providing high margins to the retailers both Pepsi and Coke are unable to control this counterfeiting. counterfeiting.

BCG Matrix 33

34

Interpretation of BCG (Coca – Cola) Coca Cola lies in the star quadrant in BCG matrix. The result is based on a 6 percent industry growth rate and 51 percent market share of Coca Cola in the international market. This shows that Coca Cola has best long run opportunities for growth and profitability in the soft drink industry, more particularly in cola industry. These results also show that the company has dominant market share in a growing market, but if we see the BCG model we can say that the company is on the edge of cash cow. And it should invest in new products or explore new industries to be competent. Strategies include forward, backward and horizontal integration, market penetration, market development and joint ventures. But as we can see that the company in on the edge of cash cow and there is a great chance that it will move to cash cows as industry  growth rate is declining in the US market.  Although Americans Americans still consumed consumed more soft soft drinks than any any other beverage consuming country, country, the average annual growth of sales volume during the 1990s was 3 % compared to 6 % in the previous decades.

SPACE Matrix of Coca Cola Company 

35

SPACE Matrix Calculations ES Average Score = -1.83 + Average FS Score (5.00) = 3.17  Average CA Score = -1.50 = Average Average IS Score (5.00) (5.00) = 3.50

36

 According to the Graph Graph above, we noticed noticed that the Coca Cola Cola Company falls falls into the aggressive quadrant of the SPACE Matrix. It is located at the coordinates of 3.50 for X component and 3.17 for Y component. It shows that the company has an admirable position to use its IS in order to take advantages of external opportunities, opportunities, overcome  weaknesses  weaknesses and avoid threats. threats. So, in this position Coca Coca Cola Company has set of  possible strategies such as Market Development, Product Development, Market Penetration, Forward And Backward Integration, Horizontal Integration, Horizontal Diversification, Diversification, Concentric Diversification and Conglomerate Diversification depending on the detailed conditions that faced by the company.

Distribution  A set of interdependent interdependent organizations organizations involved in the process process of making making a product or service available for use or consumption by the consumer or business user.

Global Distribution Once a company has decided to sell in a foreign country, it must determine the best mode of entry. Coca-cola has made use of direct investment, the other choices being 37

exporting and joint venturing. Direct investment involves more commitment and risk,  but also more control control and potential potential profits. Direct Direct investment investment is the development development of  foreign-based assembly or manufacturing manufacturing facilities. The main disadvantage of direct investment is that the firm faces many risks, such as, restricted or devalued currencies, falling markets, or government changes. The company takes a whole-channel view of the problem of distributing products to final consumers. Coca-cola is an international market so there are three major links  between the seller, seller, that is, CCL and and the final buyer, the Pakistani Pakistani Customer. Customer. The first link, the seller’s headquarters organization, supervises the channels and is part of the channel itself. The second link, channels between nations, moves the products to the  borders of the foreign foreign nations. The third third link, channels channels within nations, nations, moves the products from their foreign entry point to the final consumers. Coca-cola Company Limited CCL/CCI

CCL Headquarters for international distribution Atlanta

Channel between nations. AtlantaSingapore-Lahore

Channel within nation Direct or Indirect

Final Consumers

Channels of distribution within countries vary greatly from nation to nation. First, there are the large differences in the numbers and types of intermediaries intermediaries serving each foreign market. Coca-cola has set up direct-distribution channels, investing heavily in refrigerators and trucks, and upgrading wiring so that more retailers can install coolers. Coke is always on the look out for innovative distribution approaches. Secondly, another difference lies in the size and character of retail units abroad.  Whereas large-scale large-scale retail chains chains dominate dominate the U.S scene, much much retailing in other countries is done by many small, independent retailers.

38

Coca-cola is a truly global organization. organization. It does not think of itself as a national marketer marketer  who sells abroad, abroad, instead, considers considers itself to be be a global marketer. marketer. The top corporate corporate management management and staff plan worldwide production facilities, marketing policies, financial flows, and logistical systems. The global operating units report directly to head of the international international division.

Coca-Cola Pakistan Pakistan having a population of 160 million people and a growth rate of 2.7% annually, the beverage sector is rapidly growing in this part of the continent. It has been more than half a century since Coca-cola entered the Pakistani Carbonated Carbonated Soft Drink Market, and it has been setting market trends ever since. It has become one of the cultural icons of the country. Coca-cola Pakistan, headed by Coca-cola Exports (CCX), is located in Lahore. It is the main body of the organization and its operations is carried over by  Coca-Cola Beverage Pakistan Limited. CCX imports ‘the concentrate’ from Coca-cola International, International, based in Atlanta. The CCCL, through its subsidiaries subsidiaries actually sell only the concentrate concentrate that makes the soft drink. This concentrate is the main ingredient and its recipe is one of the best-kept secret. CCBPL owns 9 plants in Pakistan, and is solely  responsible responsible in bottling and delivering chilled drinks in ever neighborhood plus it has a superb global and local distribution distribution channel, which allows allows and makes it possible for the consumers to have easy access to the product.

39

CCI CCX

CCBPL Market Direct Distribution

Indirect Distribution

Consumers

40

Organization Structure of Coca Cola in Pakistan

41

42

Orga Organi niza zati tion on St Stru ruct ctur ure e of Sa Sale les s Depa Depart rtme ment nt of Coca Coca Cola Cola in Pakistan

43

Manufacturing Process at Coca Cola Pakistan

The manufacturing of the products of Coca-Cola involves the following steps:

•

 Water is received from the Different Sources S ources i.e. i .e. rivers, Water Board etc. and it passes passes through through the water treatment treatment plant, further further passing through the sand filter and the activated carbon filter, so as to attain pure cleansed water.

•

In the syrup room, the concentrate received from a different bottling plant is blended with the sugar syrup

44

•

Once both the water and the final syrup are ready, they are both mixed mixed togeth together er and sent sent to the carbon carbonato atorr sectio section n where where Carbon Carbon Dioxide is added to the mixture to form the final product.

•

On the other hand, simultaneously, the returnable glass bottles are depalletized, inspected and washed for the purpose of filling in the final product in it. This step does not take place in the PET bottle line as the bottles once used are disposed off.

•

The product is finally filled in the bottles, crowned (in case of RGB)/ capped (in case of PET bottles), labeled and cased in order to be sent into the warehouse wa rehouse for distribution.

45

CHAPTER # 3: Research Design and Methodology 

46

Research Design This research is a combination of exploratory and descriptive research, which goes on to explain consumer’s perception and then answers the questions of why consumer’s perceive in this way. The research concludes with reasons on why sales of coke are so low in Karachi despite it is the world market leader in soft drinks. Methodology  For the purpose of solving the current problem, survey research method has been utilized i.e. information has been systematically systematically collected from the respondents. Interviews were specifically specifically conducted on Personal (face to face) level to collect and gather the information from the respondents and questionnaires were given to them to fill. The research instrument that has been used for the data collection is Questionnaires. The process of data collection was administered personally and was prompt in gaining the appropriate data from the respondents respondents through these questionnaires. The data that  was collected collected was effective enough enough to help determine determine the factors influencing influencing the problem addressed. With the help of these findings from the questionnaire, it was possible to identify the main reasons of the problem. The questions that were asked from the respondents included various types of questions mainly; direct, indirect, openended, closed ended. Sources of Data Collection The sole source of data collection was primary and secondary research. The results and inferences were inferred from the questionnaires that were filled from the respondents  who consume CSDs CSDs (Carbonated (Carbonated Soft Drinks).

47

Sampling Method Population Population definition is one of the most important decisions that a researcher must take  before doing anything anything else. The population population for this study is defined defined in the following following way: Element: Element : Males and females aged 12 years or older. Sampling unit: Retail stores, restaurants and colleges. Extent: Karachi. Sample size:  As stated above the the true sample size size for this research research will be 100 respondents. respondents. The results are based on this number. Sampling Procedure Convenience sampling has been used to conduct the research. This kind of sampling has  been used due to short short time and large population. population. Sampling Plan The sampling plan followed by is very simple, without any complexities. We particularly   wanted information information from consumers consumers about their their preference for for Coke. Sample Selection Sample has been selected keeping the above mentioned factors in mind. But it is not easy because our population is very large.

48

Statistical Treatment of Data The following steps were followed while testing the 2 hypothesis: 1. Specifying the null hypothesis:

Ho: P ≤ 50% P ≤ 30% 2. Specifyi Specifying ng the level level of samplin sampling g error allowed allowed:: α = 0.05, thus Z = 1.64 3. Calculating Calculating the estimated estimated standard standard error error using the the p specified specified in in the null hypothesis

4. Calculat Calculating ing the the criti critical cal value value P + (Z)* The Standard Standard Error of proportion. proportion. 5. Interpre Interpretati tation on of the results results Forming conclusion conclusion by comparing critical value and the observed value.

49

CHAPTER # 4: Presentation, Interpretation and  Analysis of Data

50

Data Tabulation and Analysis: Retail Audit Table - 1 frequency

%

 Yes

30

100

No

0

Total

30

100

 As it can be seen in the the table above, the result result of the survey survey conducted amongst amongst retailers retailers conclude that, the stores that we visited sold CSD’s and they sold both brands Coke and Pepsi. The stores that sold either of them were not taken in to account. Table – 2 Most

Second

Third

Fourth

Least

Total 30

Coke

sold 10

13

7

0

Sold 0

Pepsi

17

9

1

2

1

30

Sprite

0

3

3

22

2

30

Fanta

0

1

2

6

21

30

Mountain Dew  3

4

17

0

6

30

Total

30

30

30

30

30

51

Graph - 2

 As it can be seen in the the table- 2, the result result of the survey conducted conducted amongst retailers retailers concludes that 56% of the retailers ranked Pepsi as the soft drink which produces the highest level of sales ratio. While 30% believe that it has the second highest sales. On the other hand 33% of the retailers rank Coke to have the highest sales ratio,  whereas 43% retailers retailers believe Coke is second best. best. Lastly the remaining brands which include Sprite, Fanta and Mountain Dew which are the sub products of Coke and Pepsi respectively do not reflect on an impressive turnover. On the basis of turnover 56% of the retailers rank dew with the third highest sales turnover, Sprite in fourth with 73% and lastly Fanta with 70% thus showing the lowest level of sales turnover. 52

Table - 3 Most

Second

Third

Least

Total

1.5 Liter

Sold 0

1

1

28

30

Pack  250

16

7

7

0

30

Regular Disposabl

2

17

11

0

30

e Can

12

5

11

2

30

Total

30

30

30

30

30

Graph - 3

53

 As it can be seen in the the table above, the result result of the survey survey conducted amongst amongst retailers retailers conclude that 53% of the sales of CSD’s are generated from 250 ml bottles, where as 40% believe that the level of sales produced from cans has increased in upper class areas like Clifton, Defense. Thus resulting in, Disposable bottle sales to slump and becoming the second choice buy. Leaving the pet bottle, with the least sales generation, mainly families buy the pet bottle.

Table - 4 Crates

Frequency

%

2

5

17

5

14

47

8

7

23

10

4

13

30

100

Graph - 4

54

 As it can be seen in the the table above, the result result of the survey survey conducted amongst amongst retailers retailers conclude that 47% of the retailers say that they manage to sell on average 5 crates a day,  where as 23% say say they sell 8 crates. crates. Moreover 17% which include small shops or general store manage to sell 2 crates a day, and lastly retail outlets 13% which are situated near schools, offices and other busy  places say they manage to sell more than 10 crates per day.

Table – 5 Brand Loyal

frequency

%

 Always

2

7

Sometimes

6

20

Never

22

73

Total

30

100

Graph - 5

55

 As it can be seen in the the table above, the result result of the survey survey conducted amongst amongst retailers retailers conclude that, on the question of brand loyalty shown by customers 73% of the retailers say consumers are never brand loyal, whereas 20% say sometimes brand loyal consumers give the first preference to their desired brand and if it’s not available they   buy the substitute. substitute. Lastly only 7% of the retailers retailers say that there are are brand loyal consumers and they do not buy the substitute and walk out instead.

Table - 6

 Age Category

Frequency

%

5 – 10 yrs

6

20

10 – 15 yrs

10

33

15 – 20 yrs

10

33

20 – 25 yrs

3

10

25 – 30 yrs

1

4

+30 yrs

-

Total

30

100

56

Graph - 6

 As it can be seen in the the table above, the result result of the survey survey conducted amongst amongst retailers retailers conclude that 66% of the soft drink buyer’s fall between the age range of 10-20 years of  age while 20% come under 5-10 year bracket and around 13% come in 20-30 year old  bracket.

Table - 7

frequency

%

Discount

0

Free Products

0

Commission on Meeting target

22

74

Higher margin on selling 1 brand Total

8 30

26 100

 As it can be seen in the the table above, the result result of the survey survey conducted amongst amongst retailers retailers conclude that 73% retailers on the question of benefits provided say they get 57

commission on meeting the target and 26% the get higher margins on selling more of a specific brand. Graph – 7

Table – 8

frequency

%

 Yes

10

34

No

17

56

Not Sure

3

10

Total

30

100

Graph - 8

58

 As it can be seen in the the graph above, the result result of the survey conducted conducted amongst amongst retailers conclude that on the level of satisfaction of Cokes promotional schemes 56% are not satisfied while 34% say they are and the remaining 10% claim that they are not sure or they don’t care much. The purpose of the survey conducted was to find out how well Coke is doing in the market in comparison with its competitors, and to evaluate the feed back that was got from the retailers who sell carbonated soft drinks. The most curtail aspect of this survey is to identify the actual reason for Cokes sale slump, and its mediocre market performance. Important 1. Taken Taken are those those Retailer Retailerss and other other stores stores who sell sell at least least two brands brands of CSD’S. CSD’S. 2. The sample sample of 30 + stores survey was was conducted conducted in different different areas of Karachi. Karachi. Like Clifton, Defense, PECHS, Saddar, Maleer etc.

59

3. The survey results are a reflection of what, the current current scenario scenario in the market market is, and the feedbacks that the retailers gave.

Consumer Survey 

Table – 1 Frequency

Percentage

Male

60

60%

Female

40

40%

Total

100

100%

60

Graph 1

120% 100% 100% 80% 60% 60% 40% 40% 20% 0% Male

Female

Total

From the total sample size of 100, 60%of the respondents were males and 40% were females.

Table – 2

Freq Freque uenc ncy y

Perc Percen enta tag ge

Hot

0

0%

Cold

100

100%

Total

100

100%

Graph – 2 61

100% 90% 80% 70% 60% 100%

50%

100%

40% 30% 20% 10% 0%

0%

Hot

Cold

Total

From the total sample size of 100. 100% respondents responded cold beverage preference.

Table – 3

1

2

3

4

Frequen

Percenta

Frequen

Percenta

Frequen

Percenta

Frequen

Percenta

 Abrar-ul-

cy  16

ge 16%

cy  13

ge 13%

cy  19

ge 19%

cy  52

ge 52%

Haq   Ali Zafar

21

21%

41

41%

28

28 %

10

10%

Strings

42

42%

27

27%

18

18 %

13

1 3%

Fuzon

21

21%

19

19%

35

35%

25

25%

62

Total

100

100%

100

100%

100

100%

100

100%

Graph – 3

21%

16%  Abrar-u  Abrar-ul-Ha l-Haq q  Ali Zaffer  Zaffer  21% 21%

Strings Fuzon

42%

From the total sample size of 100, 42% of the people liked Strings the most. While Ali Zaffer and Fuzon were liked by 21% of the people and Abrar-ul-haq was only liked by  16%. This shows Pepsi’s superiority in contracting contracting with celebrity endorsers (like strings and Fuzon) it also reflects on their superior ad campaigns and marketing marketing strategy. As for Coke again it shows that it has a weak ad campaigns, the endorsers are not that much liked in Karachi. Abrar may be a suitable option for Lahore but for Karachi he’s not the  best endorser. endorser.

63

Table – 4

Freq Freque uenc ncy y

Perc Percen enta tage ge

Coca-Cola

42

42%

Pepsi Cola

58

58%

Total

100

100%

Graph – 4

64

Total

100%

Pepsi Cola

58%

Coca-Cola

42%

0%

20%

40%

60%

80%

100%

120%

From the total sample size of 100, Pepsi Cola was rated favorite by 58% of the people and 42% rated Coca-Cola as their favorite.

Table – 5

Freq Frequ uenc ency

Perc Percen enta tag ge

250ml

47

47%

Regular Disposable

22

22%

Can

31

31%

Total

100

100%

Graph – 5 65

100% 100% 90% 80% 70% 60%

47%

50% 40%

31%

30%

22%

20% 10% 0% 250ml Regular

Dis posable

Can

Total

From the total sample size of 100, 47% preferred to drink their favorite cola in 250ml Regular bottle. While 31% preferred to drink their favorite cola in Can and 22% preferred Disposable Disposable bottles. As the trends are changing the consumption of cola from cans has increased. These results of the consumer survey reflect on the survey of our retail audit and both in comparison compliment each other thus justifying our results.

Table – 6

Freq Freque uenc ncy y

Perc Percen enta tag ge

Taste

43

43%

Brand Image

27

27%

Drink for the

30

30%

sake of it Total

100

100%

Graph – 6 66

100% 80% 80% 60% 60% 40% 40% 20% 20%

100% 43% 43%

30%

27%

S1

0% Taste

Bran Brand d Imag Image e

Drink rink for the sake of it

Total

From the total sample size of 100, 43% they like the taste factor in their cola while 30% say they neither care about the taste nor the brand image they just drink because they   want to, while the the remaining 27 % prioritize prioritize brand image image as a major characterist characteristic. ic.

Table – 7

Freq Freque uenc ncy y

Perc Percen enta tag ge

Not willing to substitute for

5

5%

another brand Giving first preference

53

5 3%

Don’t Care

42

42%

Total

100

100%

Graph – 7 67

120% 100% 100% 80% 80% 53%

60% 60%

42% 40% 40% 20% 20%

5%

0% Not willing to substitute for  for  another brand

Giving first preference

Don’t Care

Total

From the total sample size of 100, 53% give first preference to their desired brand, but in relation to our findings from our retail audit it shows these 53 % people who give  brand preference preference end up buying the substitute substitute brand. While While 42% don’t care about about brand loyalty while 5% were not willing to substitute for another brand.

Table – 8

Freq Freque uenc ncy y

Perc Percen enta tage ge

 Yes all the

31

31%

time Sometimes

16

16%

Never

7

7%

Coke is not

46

46%

my drink  Total

100

100%

Graph – 8 68

100% 90% 80% 70% 60% 100%

50% 40% 30% 20% 10%

46% 31% 16%

0% Yes all the Som Sometime times time

7% Never

Coke is not my drink

Total

 Asked on the availability availability of coke in stores stores from respondents respondents from the total sample sample size of  100, 46% are the ones who don’t drink coke and pretty much don’t care on its availability or not. Plus on that Pepsi’s distribution and availability is so strong that people hardly have a problem on its availability. 31% say that coke is always available  while the remaining remaining 23% say that that they have difficulty to buy buy coke as its some some time available or in verse scenario sometimes sometimes stores go out of stock. (Coke)

Table – 9

Freq Freque uenc ncy y

Perc Percen enta tage ge

 With a meal

40

40%

 With friends

24

24%

 Whenever; depends on

36

36%

the mood Total

100

100%

Graph – 9

69

100%

Total Whenever; depends on the mood With friends

36%

24%

40%

With a meal 0%

20%

40%

60%

80%

100%

From the total sample size of 100, 40% of the people preferred drinking Soft-drinks with meal. While 36% preferred drinking Soft-drinks depending on the mood and 24% preferred drinking Soft-drinks with friends.

Table – 10 Freq Freque uenc ncy y

Perc Percen enta tage ge

 Yes

30

30%

Sometimes

24

24%

No Coke is not

46

46%

my drink  Total

100

100%

Graph - 10

70

100% 100% 90% 80% 70% 60% 46%

50% 40%

30% 24%

30% 20% 10% 0% Y es

S omet imes No

Coke is not my drink

Total

 Asked on the availability availability of Coke? in restaurants restaurants or Cafes, Cafes, from the total total sample size of  100. And from the data collected from the previous question. That 40% of the people like to drink CSD with their meals so the likelihood increases for more people to consume CSD in restaurants. On its answer to this question 46% say that coke is not their drink which again indicates that these consumers consumers might opt for coke if Pepsi is not available. While 30% of the people say Coke is always available but again a high number (24%) of the people don’t find Coke in some restaurants.

Table - 11 Freq Frequ uenc ency

Perc Percen enta tag ge

1-2

79

79%

2-4

21

21%

4+

0

0%

Total

100

100%

Graph – 11

71

120% 100% 100% 80% 80%

79%

60% 60% 40% 40% 21% 20% 20% 0% 0% 1-2

2-4

4+

Total

From the total sample size of 100, 79% of the respondents say they consume 1-2  bottles/cans  bottles/cans of Soft-drinks in a day and 21% consumed consumed 2-4 bottles/cans bottles/cans of Soft-drinks in a day.

Table - 12

Freq Frequ uenc ency

Perc Percen enta tag ge

13-15 yrs

20

20%

2515-20

42

42%

 yrs 20-25 yrs

21

21%

25-30 yrs

11

11%

30+ yrs

6

6%

72

Total

100

100%

Graph – 12

100%

Total 30+ yrs 25-30 yrs 20-25 yrs

6% 11% 21% 42%

15-20 yrs 13-15 yrs 0%

20% 20%

40%

60%

80%

100%

From t0he total sample size of 100, 62% of the respondents fall between the age group of 13-20 yrs, again it’s a reflection on our retail audit survey results on the same question but asked to the retailer. While 38& of the respondents fall fall in the age category  of 20-30 years. From our findings and results we can also make a relation that most of  the higher age bracket respondents preferred Coke where as the majority of the sales is generate by  the younger age bracket

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HYPOTHESIS TESTING Hypothesis “At “At leas leastt 30% 30% of the the cons consum umer erss pref prefer er Coca Coca Cola Cola as thei theirr favo favori rite te CS CSD D (Carbonated Soft Drink).” Derived from Question # 4 of Consumer Survey  Null Hypothesis Alternative Hypothesis

H0: H1:

P ≤ 30% P > 30%

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The above Hypothesis was tested at 95% confidence level. Therefore Z= 1.64 since it is a one-tailed test. The Standard Error of proportion

=

 Where p = 0.30 n = 100 Therefore, Standard Error of Proportion = 0.046 Critical Value = p+ Z (Standard Error of Proportion) Critical Value = 0.30+1.64 (0.046) = 0.375 The analysis of Question # 4 of Consumer Survey shows that the observed value was 42%. Interpretation:Since the observed value is greater than the critical value, we reject null hypothesis.

CHAPTER # 5: Summary of  Findings and Conclusion 75

Findings: Retail Audit  After conducting conducting a survey of a sample sample size greater than than 30, I came across across some astonishing results, feedback. Which are: •

56% of the retailers ranked Pepsi with the highest sales ratio, while 34% feel Coke has the highest sales ration. (Results from different areas.)

•

On the other hand in the second sales ration bracket, retailers have ranked Coke to do more business as a second available for Cola than Pepsi. Where Coke has 43% and Pepsi 30%.

76

•

Moreover 53% of sales generated for CSD’S come from the sale of 250 Ml  bottles. Whereas Whereas 40% believe Cans have have a higher Sale.

•

On an average 47% of the retailers say they sell 5 crates per day, whereas 23% say 8 and 17 with just 2 crates.

•

73% of the retailers say that Consumers are not brand loyal, and 20% say  sometimes brand loyal consumers consumers give the first preference to their desired  brand and if it’s not available available they buy the the substitute.

•

Lastly only 7% of the retailers say that there are brand loyal consumers and they  do not buy the substitute and walk out instead.

•

66% of the soft drink buyer’s fall between the age range of 10-20 years of age  while 20% come under 5-10 year bracket bracket and around 13% come come in 20-30 year old bracket.

•

On the level of satisfaction satisfaction of Cokes promotional schemes schemes 56% are not satisfied  while 33% say they are are and the remaining remaining 10% claim that that they are not sure or they don’t care much.

 Analysis: Retail Audit From the results gathered clearly it can be seen that Pepsi has the highest sales ratio and it is the first choice Brand. Where as Coke is the second choice. Furthermore Furthermore Sales generated from containers again Pepsi had the advantage in Cans. As Coke cans are hardly available in the market as they have to be imported from Saudi  Arabia (KSA) or Dubai Dubai (UAE), which gives Pepsi Pepsi the advantage.

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In the sales of 250Ml bottles also, Pepsi is available every where, whereas Coke bottles are short and they fail to supply on time, which reflects their weak Distribution Channels. Furthermore on the concept of Brand Loyalty which is a rare case in Pakistan people generally buy what is available or what the retailer sell it to them. Again in this Pepsi has the advantage since it has a higher commission policy to those retailers who sell their products. Lastly since the majority of the CSD consumptions is done by minors and adults Pepsi does more advertisement towards them repetitively and has created the image of a  bubbly drink specially specially for the the youth which is full of of vibrance and full of energy. On the level of satisfaction of Cokes promotional schemes 56% are not satisfied while 33% say they are and the remaining 10% claim that they are not sure or they don’t care much. Which clearly indicates that majority of the retailers are not happy with Cokes policies and thus again retailers fall prey to Pepsi better and generous policies. It is also believed that one of the reasons why Pepsi is prevailing in the market is due to its flexible distribution channel. Pepsi-Cola is a franchise of Pepsi-Cola International International in Pakistan. They are the bottlers who simply buy the concentrate and then distribute it themselves, whereas, whereas, Coca-cola is totally controlled by the CCBPL for its national operations and it reports to Coca-cola Exports.

Findings: Consumer Survey   After conducting conducting a consumer survey survey of a sample size size greater than 30, 30, I came across across some astonishing results;

•

If an analogy were to be made comparing the different soft drinks brands  with their respective respective endorsers, endorsers, then from the data data gathered it can be successfully successfully concluded that 42% of the people liked strings the most who 78

endorse Pepsi where as 21% of the people like listening to Ali Zafar and Fuzon. Ali Zafar being the endorser of Pepsi where as Fuzon is the endorsers of Coke. Coke. Lastly Abrar-ul-Haq Abrar-ul-Haq have 16% of support, support, understandably though because the survey was conducted in Karachi and  Abrar sings Punjabi Punjabi songs which is is generally for the the people living in Punjab. These results reflect the most liked endorser artists.

•

The results gathered from the survey also show that Pepsi has a higher consumer base than Coke. The ratio being 58% of Pepsi to 42% of Coke.

•

More over 47% of the respondents said that they prefer drinking CSD’S in 250 ML bottle. The feed back not being a surprise as 250 ML bottles are  widely available available at stores and restaurants, restaurants, it has has the cheapest price. price. As compared to Disposable Disposable and Cans. Having said that 31% of the people have now shifted their preferences form consuming colas in 250 ML to cans. The can usage being more popular with the teenage crowd, representing representing a status quo and a fashion statement.

•

43% of the people surveyed say that taste is the major factor for consuming CSD. Where as 30% feel that they just drink for the sake of it with any  meal or they drink to kill time while waiting for their meal to be served.  While only 27% say that they associate associate themselves themselves with the brand brand and give importance to the brand image.

•

53% give first preference to their desired brand but at the same time if they  don’t get their preferred brand they don’t mind switching for another. Furthermore Furthermore 42% of the respondents said they didn’t care about brand loyalty though they preferred a brand. Only 5% of the respondents were totally brand loyal.

79

•

Having endorsed the fact that preference is not the ultimate need the sample based their preference preference on the availability of the brand. 46% of the respondents said they didn’t drink coke and didn’t care much about its ability. 31% of them said coke was always available whereas 23% said they  had difficulty in buying coke as it was not available in many areas.

•

Usually soft drinks are preferred with meals and this was represented by  40% of the people saying so. While 36% preferred drinking depending on their moods and 24% preferred drinking soft drink with friends.

•

The consumption of cold drinks show at least 79% of the sample have (1-2)  bottles of CSD’S in a day day and 21% consumers consumers (2-4) in a day.

•

62% of the respondents that drink soft drinks fall between the age group of  13-20 years while 38% of the consumers fall in the category of 20-30 years.

Conclusion Coca-Cola being one of the largest firms in the world shows a downward trend in its operations in (Karachi) Pakistan. Researching on this paper gave me an opportunity of  not only finding out the reason why Coca-Cola trails Pepsi in this country but on the  whole, it broadened broadened my perspective perspective of the entire beverage beverage industry and its dynamisms. dynamisms. This research paper indicates clearly that world wide Coca-Cola enjoys a healthy lead in market possession, possession, revenue generation and market growth but having said that it some how fails to reflect on its global excellence in Pakistan (especially in Karachi). As 80

mentioned in the first chapter of the paper Coca-Cola’s brand Equity as compared to other Carbonated Soft Drinks (CSD’S) with its cap on has a brand value of $ 120 billion as opposed without its cap which is only worth $ 50 billion. This brand value of Coke shows its successful attempt to establish a valuable relation with its consumers for more than a century. One of the strongest components of the Coca-Cola Company is its state of the art bottling systems which has been installed in each and every country of its operations, this facility helps the company to fill higher number of bottles in the shortest possible time period, as well as achieve efficiency and economies of scale. Coca-Cola has always been sponsoring world sporting events like the Olympics Olympics and the FIFA world cup giving it an association of attitude, fairness and competitiveness. In Pakistan the scenario is that of a market follower one major reason was attributed to the taste of the beverage. It has a stronger taste in comparison to Pepsi’s which is sweeter. That is why Pepsi is mainly in demand in Pakistan. Other than the taste factor distribution and the corporate organization also plays an important part in making Pepsi the more dominant brand of the two, for example when it comes to distribution Pepsi mainly follows the Hybrid model of distribution though Coke follows the same but more focus tends to be on the direct side of distribution, where as Pepsi makes use of   both. The organizational organizational structure structure also helps Pepsi Pepsi as the Pepsi Cola Cola Pakistan has a decentralized chain of command compared to Cokes centralized, which means every  decision for Coke to be passed it take much longer time for approval as compared to Pepsi’s decision making. As every decision has to be approved by the top management, this is situated in Lahore. Other factors for Pepsi’s success are its successful brand image and its sponsorship of  the national cricket team. Lastly one of the most important factors Coca-Cola Pakistan should work on is their distribution network with in the country. Coca-cola uses the multi-channel distribution system also known as the hybrid marketing system.

81

Key Customers

Direct Retailers

Consumer Segment 1

CCBPL

Distributors Indirect

Retailers

Business Segment 1 Business Segment 2

 Although this system system enables enables coke to provide its brand brand directly and and indirectly to its consumers, consumers, the major focus of distribution from coke has been on using the direct method. The direct method enables coke to be in control of all its logistical works and handlings. The primary concern concern for coke has been that it has been losing out to its rivals on a consistent basis for a period of time. The reason being the rival company had placed a lot of emphasis on outsourcing their distributions. Due to which they were able to cater to a larger market segment and have a wide spread product availability. availability. With the help of outsourcing they were able to overcome unionism, which could otherwise be a setback for any company. Coca-cola facing rigid distribution policies and complex commission structures sometimes create a hurdle for its own brands in terms of mass product availability and distribution. Findings from the research also show that the hard core coke fans fulfill their duties by giving coke the first preference and satisfying their  brand loyalty loyalty obligations. in another another finding its also also seen that 24% of the the sample population thought that coke was not available at stores or restaurants. These all show  that coke is not that far behind of Pepsi in terms of brand loyal customers but because of  their lack of flexibility in terms of policies and implementation they have to sacrifice that chunk of the market share.

82

CHAPTER # 6:

83

Supplementary  Parts

Definition of Terms: FMCG: Fast Moving Consumer Goods 84

Fast-moving consumer consumer goods (FMCG) or Consumer packaged goods (CPG) are the products that are sold quickly and at relatively low relatively low cost. cost. Examples include non-durable goods such as soft drinks, toiletries, and grocery items. Though the absolute absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be substantial. Brand Preference One of the indicators of the strength of a brand in the hearts and minds of customers,  brand preference preference represents which which brands are are preferred under assumptions assumptions of of equality  in price and availability by the consumers in a given market. Consumer Awareness Consumer Awareness is referred to how much awareness do the customers have regarding a specific brand or product in a given market. Brand Hierarchy  Brand Hierarchy refers to the Brand-Product Matrix which helps to highlight the range of products and brands sold by the Company. Segmentation Segmentation is a concept in marketing marketing.. A market segment is a sub-set of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function. Positioning Positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for their product, product, brand,  brand, or organization. organization. Target Market  A target market market is a group of customers customers that the business the business has decided to aim its marketing efforts and ultimately its merchandise. merchandise .

Brand Equity 

85

Brand equity is the marketing effects and outcomes that accrue to a product with its  brand name compared compared with those those that would accrue would accrue if the same product did not have the brand name. Fact of the well-known brand name is that, the company can sometimes charge premium prices from the consumer. Brand equity is one of the factors which can increase increase the financial value of a brand to the brand owner, although not the only one. SWOT Analysis SWOT analysis is a strategic planning method used to evaluate the Strengths,  Weaknesses,  Weaknesses, Opportunities, Opportunities, and Threats involved involved in a project or in a business venture. Brand image Brand Image is referred to what image does the brand possess in the minds of the consumers. Per capita Per capita is a Latin prepositional phrase: per phrase: per (preposition, taking the accusative case, meaning "by, by means of") and capita (accusative plural of the noun caput , "head"). The phrase thus means "by heads" or "for each head", i.e. per individual or per person. The term is used in a wide variety of social sciences and statistical research contexts, including government statistics, economic indicators, indicators, and built environment studies. BCG Matrix The BCG matrix is a chart that had been created by Bruce Henderson for the Boston Consulting Group in 1968 to help corporations with analyzing their business units or product lines. lines. SPACE Matrix SPACE Matrix is used to analyze the strategic position of the firm, which then helps in selecting the strategy. Retailer strength 86

Retailer Strength is referred to the Bargaining Power of the Retailer. Descriptive Descriptive research Descriptive research, also known as statistical research, describes data and characteristics characteristics about the population or phenomenon being studied. Descriptive research answers the questions who, who, what , where, where, when, when, "why" and how... how... Exploratory Exploratory Research Exploratory research research is a type of research of research conducted for a problem that has not been clearly defined. Exploratory research helps determine the best research design, data collection method and selection of subjects. It should draw definitive conclusions only   with extreme caution. caution. Given its fundamental fundamental nature, nature, exploratory research research often concludes that a perceived problem does not actually exist. Questionnaires  A questionnaire questionnaire is a research instrument consisting of a series of questions of  questions and other prompts for the purpose of gathering information from respondents. Although they are often designed for statistical analysis of the responses, this is not always the case. Primary research Primary research consists consists in research to collect original primary data. It is often undertaken after the researcher has gained some insight into the issue by collecting secondary data. This can be through numerous forms, including questionnaires , direct observation and telephone interviews amongst others. Secondary research Secondary research (also known as desk research) involves the summary, collation and/or synthesis of existing research rather than primary research, research, where data is collected from, for example, research subjects or experiments. Hypothesis  A hypothesis (from (from Greek ὑ πόθεσις ; plural hypotheses) is a proposed explanation for a phenomenon.

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Business Research Methods, Methods, by William G. G. Zikmund

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Prentice Hall, 2000.

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Belch, George.E, and Michael A. Belch. Advertising and Integrated Marketing Marketing

Communications Communications Perspective (6th edition.). New York: McGraw-Hill, McGraw-Hill, 2003

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Kotler Philip. Marketing Management the Millennium Edition New Jersey:

Prentice-Hall, Inc. 2000

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Kotler, Philip, and Gary Armstrong. Principles of Marketing (10th edition). New 

Jersey: Prentice-Hall, 2000

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Keller, Kevin. L. Strategic Brand Management Building, Measuring, & Managing

Brand Equity. London: Prentice Hall, 2003.

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Gilmore, Fiona. Brand Warriors. Great Britain: HarperCollins, 1997.

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Mown, John. C. and Michael Minor. Consumer Behavior (5th edition). New 

Jersey: Prentice Hall, 1998.

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Goodman Laura, Director, Corp. Marketing. http://www.rif.org/ http://www.rif.org/ 2008-02-29

International International Journal, 7:2, 3-10, http://bura.brunel.ac.uk/ http://bura .brunel.ac.uk/handle/2438/127 handle/2438/1277 7

Specimen of Questionnaire: 88

Retail Audit Questionnaire 1. Do you sell CSD at your store? •

 Yes

•

No

2. Rank in order of sales ratio? (Where 1= most sold and 13 least sold) a) __ ____ ____ ____ ____C __Cok okee  b) __________Pepsi c) __ ____ ____ ____ ____S __Spr prit itee d) __ ____ ____ ____ ____ __Fa Fant nta a e) ___ ______ ______ ____Mo _Mount untain ain Dew  3. Which Soft drink container has the highest level of sales turnover? a) 1.5 Liter Liter Pet ___ ______ _____ __  b) 250 Ml Regular______ Regular______ c) Dispos Disposab able_ le____ ______ ______ ___ d) Can___ Can______ ______ ______ ______ ____ _ e) 2.25 2.25 Liter_ Liter____ ______ ______ _____ __ 4. What would you estimate the number of Crate units sold be in a day on an average? a) 2  b) 5 c) 8 d) 10

89

5. Have you ever come across Brand Loyal CSD consumers who only want a particular  brand and buy no other other substitute substitute brand to it? a)  Always  b) Sometimes c) Never

6. What age category do the majority of the soft-drink soft-drink buyers come into? a) 5-10 yr yrs  b) 10-15yrs c) 15-20yrs d) 20-25 0-25 yrs yrs e) 25-30 -30 yrs f) +30yrs 7. What kind of benefits is provided to you by the wholesaler/Distributor? wholesaler/Distributor? a) Discount  b) Free products c) Commis Commissio sions ns on meeti meeting ng targe targets ts d) Higher margin on selling one brand 8. Are you satisfied with the Coke’s promotional packages? a) Yes  b) No c) Not sure

Consumer Preference 90

Questionnaire 1. Gender a) Male  b) Female 2. What is your general preference in beverages? a) Hot  b) Cold If you prefer cold beverages please proceed

3. Rank the following Pop/Rock Stars according according to your liking? (Where 1= most liked and 4 least liked) a) ___ ______ ______ ____Ab _Abrar rar-ul -ul-Ha -Haq q  b) __________Ali Zafar c) __ ____ ____ ____ ____S __Str trin ings gs d) __ ____ ____ ____ ____ __Fu Fuzo zon n 4. Which is your favorite CSD carbonated Soft Drink)? a) Coca Coca-C -Col ola a  b) Pepsi Cola

5. Which Soft drink container do you prefer to drink your cola in? 91

a) 250 Ml Regul Regular_ ar____ _____ __  b) Disposable__________ Disposable__________ c) Can_ Can___ ____ _____ _____ ____ _____ ____ _ 6. What Characteristics of your favorite Soft Drink Brand you like? a) Taste  b) Brand Image c) Drin Drink k for for the the sake sake of of it 7. What does brand Loyalty mean to you? a) Not willi willing ng to substi substitute tute for for anothe anotherr brand brand  b) Giving first preference preference c) Don’t Ca Care 8. Do you find Coke available when you go to buy them in stores? a) Yes Yes all all the the tim timee  b) Sometimes c) Never d) Coke Coke is is not not my drink  drink  9. When do you prefer drinking Soft-drinks? a) Wit With a meal eal  b) With friends c) Whenev Whenever er;; depend dependss on the the mood mood 10. Do you find Coke available when you go to eat at Restaurants Restaurants or Café’s?

92

a) Yes  b) Sometimes No No c) Coke Coke is not not m my y dri drink  nk  11. How many bottles/cans do you consume in a day? a) 1-2  b) 2-4 c) 4+ 12. What age category category do you fall fall under? a) 13-15 yrs  b) 15-20yrs c) 20-25yrs d) 25-3 5-30 yrs e) 30+ yrs

93