1.0 Introduction Nobody lives without water. There are many benefits of water, and the most important one is to hydrate human body. It is commonly known that we should drink two liters of water per day. It is also known that 75% of human body consists of liquid. In other words, water is crucial for human live. Along with that fact, there are now many companies produce bottled mineral drinking water. Nowadays, people can find bottled drinking water almost everywhere. The products vary, in term of brand, packaging, and other characteristic. In Bangladesh, there are some well-known brands of bottled mineral drinking water, such as MUM from Partex, Fresh from Meghna group, Jibon from City group, Aquafina from PepsiCo and others. The products are easy to be found in the market. It is available from small shops to supermarkets. The packaging is various, starting from 500 ml until 5000ml per bottle. Price and other characteristic are also different, depend on the brand. Several factors are examined to find out what Factors Influencing Consumers’ Buying Pattern towards Mineral Water in Bangladesh by showing a study on Aquafina in this report.
1.1 Objectives of the report 1
The objective of the report can be viewed in two forms:
Primary Objectives
Secondary/Specific Objectives
I. Primary Objectives This report is been prepared primarily to fulfill the requirement of MKT 501 course under the Department of MBA, East West University. Primary objectives are
We have tried to introduce the product and the company from which it belongs. Strengths and Weaknesses of the brand from an image perspective. Strengths and Weaknesses of the product or service.
II. Specific Objectives More specifically, this study entails the following aspects:
How the buying pattern is influenced of consumers including cultural factor, social factor, personal factor, psychological factor, buying decision process and defined the marketing mix.
By doing above all the things we tried to explain the company’s marketing activity, marketing implementation, buying decision process and marketing mix.
1.2 Methodology of the study 2
I. Research Method: The target population of this research was the students of East West University. The unit of analysis was the individual students. Bottled drinking water is important part of students’ daily activities. Demanding schedule and quality concern become the main causes that students prefer to buy bottled drinking water. Indeed, bottled drinking water is demanded product for EWU students. However, there are many brands of bottled drinking water there. EWU students come from various backgrounds, so that it is reasonable that they could represent the market segment of bottled drinking water. The sampling technique was convenience sampling. That technique was chosen in order to get broader result. Malhotra (2010) stated that convenience sampling is the easiest technique. By using this non probability technique, there were more respondents who could participate in the survey and it allowed the researchers to get more realized sample size in a short period of time. II. Primary Sources: A primary source is basically source material that is closest to the person, information, time period, or idea that is being studied, such as surveys, interviews, and observations. It is contrary to secondary sources, which is information that has been passed through another person, medium, or agent. Our primary source of information was Survey. III. Secondary Sources:
Different written documents.
Different Journals.
Web site of Aquafina and PepsiCo
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1.3 Limitations of the study The Study was limited by a number of factors. Some Constraints are given below
Getting the information and interpreting it, on the basis of our understanding and then implementing it.
Lack of Co-Operation from the officials from confidential Point of view.
Shortage of information and time
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1.4 Strengths and weaknesses of the brand from an image perspective I. Brand Image: Brand image is the essence of a brand. It is not something you can hold, rather something that you perceive. Always morphing and evolving or devolving. The perception of brand image is what the mechanisms of advertising, marketing and public relations, endeavors to influence by molding, managing, creating, supporting and ultimately manufacturing the brand assets to which consumers relate.
Figure: Six dimensions of brand identity
In
his so-called Brand Identity Prism, JeanNoël Kapferer identifies six aspects of brand identity:
(1) physique, (2) personality,
(3) culture, (4) relationship, (5) reflection and (6) self-
image. II. Strengths of Aquafina from Image 1. Physique: this is the set of the evoked in people’s
Perspective: brand’s physical features, which are minds when the brand
name
is
mentioned. Aquafina
carrying
a
strong physique. What
does the brand
look like? What can a
consumer do with it And how can it be recognized?
in terms of functionality? Aquafina can give answer of these
questions quite easily. 2. Personality:
The brand’s character.
writing, using specific design
This can be realized by using a specific style of features, and using specific colors
schemes. With the image of PepsiCo, Mother Company and attractive bottle shape with refreshing color and comfortable to hold and carry, Aquafina holds a strong personality as a brand. 5
3. Reflection: this aspect makes reference to the stereotypical user of the brand, and is the source for identification. Aquafina is a reflection of purity, youthful, refreshing which differentiate Aquafina easily as a brand from other mineral water brands. 4. Self-image: the mirror the target group holds up to itself. Aquafina as an international brand holds more posh image than other mineral water brands to its users. III. Weaknesses of Aquafina from Image Perspective:: 1. Relationship: A brand can symbolize a certain relationship between people. As a new brand, Aquafina still lacking behind it terms of relationship with customers since other mineral water brands like MUM possessing a strong relationship with customers and having loyal relation as well. 2. Culture: the system of values and basic principles on which a brand has to base its behavior (products and communication). Culture is the direct link between brand and organization. Many associations in this area are linked to the country of origin. Since Aquafina is an international brand, product of a different country, people who have strong patriotic feelings will avoid Aquafina and prefer national brands.
1.5 Strengths & Weaknesses of the product or service I. Brand Advantage:
Aquafina goes through a seven step state-of-the-art purification process to give consumers pure water and perfect taste.
Aquafina has been built through refreshing and sharp advertising. The ‘What a Body’ campaign has helped the brand to drive premium, modern and youthful imagery in an otherwise undifferentiated category. 6
Bottled across in all over Bangladesh, Aquafina is available across more than half a million outlets.
Aquafina is the face of PepsiCo’s water conservation initiatives and builds awareness about PepsiCo’s efforts to replenish and restore the water table through its pack labels.
II. Strengths:
Excellent branding and advertising through TVCs, print ads
Excellent distribution and availability at retails, groceries, restaurants, hotels etc.
Pepsi Brand Name adds more value to it and it has a global availability
Available products also include flavor splash, sparkling water
Environmental friendly plastic bottle packaging
Sponsor of major sporting events
Aquafina brand also has skincare, body care and lip care products.
III. Weaknesses
Insufficient promotional activities Insufficient managing skill Lower number of human resource Fail to identify difference between developed markets vs. developing market Lack of online promotional activities
1.6 Factors influencing consumer's buying pattern
To identify the buying behavior of a customer is very difficult subject. A customer buying behavior is influenced by cultural, social, personal and psychological factors. 7
I. Cultural Factors: Culture, subculture and social classes are particularly important in buying behavior. Culture: Culture is most fundamental determination of a person’s wants and behavior. The important characteristics of culture are it is learned, it is shared through social institutions, and it changes with the time. The influence of culture on buying behavior varies from country to country therefore marketers have to be very careful in analyzing the culture of different groups, regions or even countries.
Subculture: Each culture consists of smaller subculture that provides more specific identification and socialization for the member. Subculture includes nationalities, region, and geographical region. Marketers can use these groups by segmenting the market into various small portions. For example, marketers can design products according to the needs of a particular geographic group. Social Class: Every society possesses some form of social class, which is important to the marketers because the buying behavior of people in a given social class is similar. In this way marketing activities could be tailored according to different social classes. Here we should note that social class is not only determined by income but there are various other factors as well such as wealth, education, occupation etc.
II. Social Factors
In additional to cultural factors Customer’s behaviors influence by such social factor like following: 8
Reference Groups: Reference groups have potential in forming a person attitude or behavior. The impact of reference groups varies across products and brands. For example if the product is visible such as dress, shoes, car etc then the influence of reference groups will be high. Reference groups also include opinion leader, a person who influences other because of his special skill, knowledge or other characteristics. Family: Buyer behavior is strongly influenced by the member of a family. Therefore marketers are trying to find the roles and influence of the husband, wife and children. If the buying decision of a particular product is influenced by wife then the marketers will try to target the women in their advertisement. Here we should note that buying roles change with change in consumer lifestyles Roles and Status: Each person possesses different roles and status in the society depending upon the groups, clubs, family, organization etc. to which he belongs. For example a woman is working in an organization as finance manager. Now she is playing two roles, one of finance manager and other of mother. Therefore her buying decisions will be influenced by her role and status.
III. Personal factors: Byers decision also influence personal characteristic.
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Age & Life cycle Stage: Buyer’s decision differs on their age and stage in life cycle. Their choice is related of them. Occupation: Customers buy product consist their occupation. Economic circumstance: Product choice is greatly affected by ones economic circumstance. Life Style: Lifestyle means the pattern of living. It also influences to buyers what he should be bought. Personality & Self-confidence: By personality means distinguishing psychological characteristics, self-confidence. A person must buy a product with consistence his Personality and self-confidence. IV. Psychological Factors: Motivation: A motive is a need that is sufficiently pressing to drive the person to act. Psychologists have developed theories of motivating.
A motive is a need that has a sufficient level of intensity.
Creating a tension state that drives the person to act.
Satisfying the need reduces the felt tension.
Perception: Perception is the process by which an individual selects organizes information input to create a meaningful picture of the world. Learning: It involves change in an individual’s behavior arising from experience. Beliefs and Attitudes: Through doing and learning people acquire beliefs and attitudes.
1.7 Buying decision process
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Understanding consumer behavior and “knowing customers” is not simple. Customers may say one thing but do another. They can get influenced and change their mind the last minute. Or their needs or wants change from time to time. Consumer buying behavior refers to the buying behavior of final consumers- individuals and households who buy goods and services for personal consumption. According to Kotler et al. (2008), consumers pass through several stages before purchasing something. They argue that the buying process is one which starts long before the actual purchase and continues long after. The marketer therefore needs to focus on the entire buying process, rather than just the purchase decision. Figure 2.1 shows the consumer decision process with influencing factors.
Figure 2.1: Consumer buying decision process with influencing factors Source: Kotler, P., Armstrong, G., Wong,V., Saunders, J. (2008). Principles of Marketing. (5th ed.). England: Pearson Education Limited.
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The process starts when the buyer recognizes a problem or need. Thereafter the buyer will or will not search for more information related to the need. This information will be used to evaluate alternative brands in the choice set. After evaluation, the buyer actually buys the product. Based on the satisfaction or dissatisfaction of the buyer, he/she will take further actions after the purchase. Kotler et al. (2008) agree that the next factors strongly influence the buying behavior of consumers: cultural, social, personal and psychological factors. The consumer’s choice therefore results from the complex interplay of all these factors. Although the marketer cannot influence many of these factors, they can be useful in identifying potential customers to serve their needs better.
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1.8 Marketing Mix of Aquafina: I. Product: Aquafina, a drinking water brand from PepsiCo, is one of the leading drinking water brands in the US and
is
currently sold across the world. Pepsico and Transcom Beverages launched Aquafina in Bangladesh on 7th of March 2015, a
Ltd
universally renowned brand to Bangladesh that has already proven its worth in international markets. Aquafina has basically a good image in the mineral water market. This product comes with 2 pack sizes 500ml and 1500ml which are greatly appreciated by the consumers. Quality perception is very much high to all the traders, institutions, and consumers. Brand influence the purchasing behavior of a consumer. Reliability, feature, conformance and features of Aquafina influence the purchasing behavior of a consumer. Reliability: Reliable mechanism. Free from adulteration and contamination. Produced under hygienic condition Obtained BSTI license. Feature: Safe and pure natural drinking water. It is balance for people of all ages Using price tag, expire date, bar code. Using attractive packaging, labeling 13
Service: It is also appreciated by the consumers because its service is very good. It is available to everywhere. Such as – Retail Market – Grocery shops, Tea stall, Confectionary, Fast foods, Sweet shops, Panaceas, General restaurant, Pastry shops in Bus-train-launch terminals etc. Institutional Market – Hospitals, clinics, Chinese restaurant, cafeteria, Luxury Hotels, Govt. & private offices, Banks, Insurance, Office of different ministers, Parliament, UN Bodies, NGOs, National & International Air Services, Social programs, Religious programs, Stadiums, Playground, EPZ etc. Conformance: Pure hygienic natural drinking water People of all ages Strictly following guideline & standard II. Price:
1500 ml
500 ml
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Pepsico and Transcom Beverages Ltd launched Aquafina in Bangladesh. As everyone knows that the market is price sensitive that’s why Aquafina set the price as reasonable as possible. For this reason consumers are also satisfied with their price. Most of mineral water brands almost set the similar price for same size. In this case consumers are getting more benefit from Aquafina by giving the similar amount such as high quality, assurance of purity etc. Yet their quality perception is good enough but they don’t charge the high price for their product.
Pack Size (ml)
Price (in TK)
500
15.00
1500
25.00
III. Channel of Distribution: Aquafina distributes two pack sizes of mineral water throughout Bangladesh. The products are distributed from the factory to the sales depots. They have a strong distribution base with 350 distributors and dealers nationwide and 64 distributors in Dhaka city. Hundreds of eager, energetic and effective sales representatives are working, supported by their dedicated sales and marketing division. To their vast sales and distribution network of dealers, they have 6 sale depots (warehouse) located at strategic points. These are – Dhaka, Chittagong, Rajshahi, Khulna, Sylhet, Barishal. There are 64 districts in Bangladesh and to maintain smooth and efficient distribution, they have mobilized adequate distributors and dealers to serve these regions. Distribution is carried out by their transport fleet supplemented by dealers transport also. Channel coverage- Aquafina started their operation in Bangladesh for 2 years they are not reached in distinct rural area. 15
Transport- Aquafina is a product of pepsico and they have their own transport to supply their product.
IV. Promotion:
Sometime company
gives
promotion to the wholesaler
or
retailer or consumer to increase their sales. Aquafina gives promotion to attract those consumers who are attracted by the other brands. In this case Aquafina gave promotion to the retailer to increase their sales. Aquafina started giving 2 bottles free per carton. The present situation is, Aquafina gets so 16
popularity within few years in Bangladesh. They are using the brand name of pepsico so their product is already known to the people. Sales promotion- Aquafina gives sales promotion to their distributor. Advertising- Aquafina advertises their product on television. Sales force- Aquafina is using the established sales force of pepsiCo.
1.9 Data Analysis I. Price and product of mineral water Brands: Brand
500 ml
Mum
15 taka
Jibon
15 taka
Fresh
15 taka
Aquafin a
15 taka
1 liter
1.5 liter
2 liter
25 taka 20 taka
2.5 liter
3 liter
35 taka
4.5 liter 70 taka
30 taka 25 taka
28 taka
5 liter
65 taka 35 taka
38 taka
70 taka
75 taka
25 taka
Interpretation: From the above table it indicates that Aquafina offers only two size of products where as other brand like Fresh offers 7 product size. More or less all the mineral water company offers the same price like 500 ml 15 taka & 1.5 liter 25 taka.
II. Preference of Brand:
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Brand preference
brand preference
Interpretation: Although Aquafina started their operation in Bangladesh for two years customers prefer Aquafina than other brands as it is a product of Pepsico. Mum is the strongest competitor for Aquafina. III. Availability of Aquafina:
Availability of Aquafina
No; 30%
Yes; 70%
Interpretation: 70% people think that Aquafina mineral water is available in stores and outlets. But 30 % people think they are not available. IV. Cultural Factor
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Cultural Factor Culture
28%
Subculture
54%
Social Class
18%
Interpretation: Social class is an important role in purchasing drinking water. 54% people believes that their social class and positioning is helped them to purchase Aquafina. Generally middle class and upper middle class people buy Aquafina more than other class of people. 28% people are attracting by their culture and 18% people influence by their sub culture in terms of purchase Aquafina.
V. Social Factor:
Social Factor Reference Groups
18% 24%
Familly 58%
Roles and status
Interpretation: Social factors plays an important role in terms of purchase drinking water .Reference groups like BSTI plays an important role in terms of purchasing decision. From our survey we find that 58% people are influenced by this kind of reference groups. Family advice and their economic situation also play a role 19
by 24% for buying and consuming Aquafina. Different roles and status in the society depending upon the groups, clubs, family, organization etc. to which he belongs plays a vital roles in that. Generally various social occasion and meeting performs the role of buying Aquafina in buying patterns of consumer. VI. Personal Factors:
Personal factors Age & Life cycle Occupation 32%
22% 8%
18%
20%
Economic circumstance Life Style Personality & Self confidence
Interpretation: In terms of bottled mineral water 20% of people from our survey are influenced by their economic condition. People earned more than 25000tk are drinking Aquafina than others. On the other hand people whose life styles are modern or traveling they buy Aquafina by 32% from our survey. Age also performed a role in buying decision. Age ranges from 20 to 35 are drink Aquafina from other age people. VII. Psychological Factors:
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Psychological Factors 5% 5%
Motivation 28%
Perception Learning Beliefs and Attitudes
62%
Interpretation: During our survey we found that 62% of people influenced by their perception to buy Aquafina. Their perception is build upon by their social belief and their surrounding environment. They believe that Aquafina represents a meaningful image of purity and strong brand image. Motivation also helps in their buying decision for 28% by creating a strong need and satisfying their need by drinking it. Learning from others and their religious and social belief and attitude also affect their purchasing by 5% in terms of drinking Aquafina.
1.10 Recommendations 1. Aquafina can extend their pack sizes because there is a demand of 1 Liter from consumer side. When it is a matter of 2 or 3 drinker, 500 ml is small and 1500 ml is big. When these 2 or 3 consumers’ need a mineral water they have to switch to other brand though they were in preference of Aquafina 2. Aquafina can sponsor to sports program in different school, colleges and university etc. 3. Its especially available in urban areas, though the price is same with its rival company, it can increase its distribution channel. 21
1.11 Conclusion There is a saying, “life is the another name of water”. Based on the study it is seen that most of the people want crystal clear water for drinking as basic need. Totally pure and hygienic quality drinking water is a basic need for people, particularly the urban and sub-urban sector in Bangladesh. To provide the people with safe and pure drinking water. Transcom beverage with PepsiCo started producing Aquafina in 500 ml and 1500 ml bottle. Most of the consumer always prefer and seek reasonable price for good quality that Aquafina serves to the consumers. It is being distributed nationwide by Transcom 22
beverage using the channel of PepsiCo as well. For the packaging of their product they use PET (Polyethylene Terepthalate) bottle which is a package for food and non-food products because it is inexpensive, light weight, resalable, shatter resistant and recyclable. With the help this marketing mix analysis we can say that, the company may achieve a strong level of customer preference. Although there is a tough fight with its major competitors but Company’s quality of products played a vital role to create this position in such situation. We also came to know for the mineral water market that how the consumer think, how they behave when they want to purchase a mineral water from the market and what factor influence their purchasing behavior.
1.12 Sources 1. 2. 3. 4. 5. 6.
www.google.com http://www.aquafina.com https://www.facebook.com/AquafinaBangladesh www.pepsico.com www.netmba.com www.wikipedia.com
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1.13 Appendix Questionnaire As a part of our project we would like to gather some information from you which will help us in an in depth study of project. The information provided by you will be kept confidential and will be used for academic purpose only. We would be obliged if you co-operate with us in filling the questionnaire.
1. Age (in years) Less than 20 20-30 30-40 Above 40
2. Sex Male 24
Female
3. Any Profession along with study? Private Job Govt. Job Business Retired Other:
4. Nature of Job Temporary Permanent Not Apllicable
5. Family Income (Monthly in Taka) Less than 10000 10000-20000 20000-30000 Above 30000
6. Do you prefer bottled mineral drinking water? Yes No 25
7. Which brand you prefer most? Aquafina Mum Jibon Fresh 8. Which of the following cultural factor influence you most to buy Aquafina? Culture Sub-culture Social Class None of that 9. Which of the following Social factor influence you most to buy Aquafina? Reference Groups Family Roles & status None of that 10. Which of the following personal factor influence you most to buy Aquafina? Age and lifecycle Occupation Lifestyle Economic circumstances Personality & self confidence
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11. Which of the following Psychological factor influence you most to buy Aquafina? Motivation Perception Learning Beliefs and Attitudes
12. Which brand image attracts you most about Aquafina? (Can chose multiple numbers) Physique Personality Reflection Self-image Relationship Culture
13. Will you suggest your friends to drink Aquafina as a good brand? Yes No
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Thank you for giving your valuable time to complete the survey.
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