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Internship Report On Reference Group Group Influence on Purchase Decision Making of Soft Drinks: A Demographic Study Based on Clemon
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Reference Group Influence on Purchase Decision Making of Soft Drinks: A Demographic Demograph ic Study Based on Clemon
Submitted To:
Mr. Mahmudul Haq Internship Supervisor Assistant Professor BRAC UNIVERSITY
Submitted By: Name: Zoheb Ahmed ID No.: 11364023 Major:: Marketing Major Program: MBA Program:
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Date of Submission: 30 September, 2013
30 September, 2013
Mr. Mahmudul Haq
Internship Supervisor Assistant Professor BRAC University
Subject: Submission of the internship Report.
Dear Sir,
It is my great pleasure to submit my Internship Report as a part of my BBA program to you that I was assigned to prepare under your direct su pervision on the topic entitled “ Reference Group Influence on Purchase Decision Making of Soft Drinks ”. I am fortunate enough that I have got an experience and
efficient professional team in the company. I have got the opportunity to work with them at different Brand Marketing section of Akij Food and Beverage Ltd. to learn their marketing processes and procedures effectively. I tried my best to show my skill, which is achieved by twelve weeks (03 months), practical experience through this report. Finally, I would like to assure that I will remain stand by for any clarification, explanation as and when required. Thank you in advance for your kind assistance. It will be great pleasure for me if you kindly accept my internship report. Sincerely yours This website stores data such as cookies to enable essential site functionality, as well as marketing, personalization, and analytics. You may change your settings at any time or accept the default settings. ____________________ _______________ _____ Zoheb Ahmed Privacy Policy ID No. 11364023 Program- MBA Marketing Personalization Analytics Save
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My acknowledgement begins by thanking my Supervisor Mr. Mahmudul Huq, who has provided me with suggestions for making this Final Internship Report and also provided me with the format for preparing this report. I would like to show my war warm-hearted m-hearted gratitude to the Brand Marketing department of Akij Food and Beverage Ltd.; which has provided me with great deal of information, adequate data and cooperated coop erated me for the accomplishment of this report successfully. Finally, last but not the least, I would like to thank each and every Staffs of the brand marketing section of Akij Food and Beverage Ltd. specially Mr. Md. Shafiqul Islam Tushar (DGM), Mr. Sumit Chokrabarti (Brand Officer), Mr. Alaudin (Senior Brand Officer) for their kind assistance regarding the report without whom it would not possible for me to complete this difficult task, I got all necessary guidelines, cooperation, cooperation, advice from them to complete this complicated task. I am very much thankful to Akij Food and Beverage Ltd. its management, especially employees of Brand Marketing for their cordial support to prepare this difficult study with important information and data.
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Executive Summary:
The beverage industry in our country compiles various sorts of marketing aspects that significantly enhanced my interest towards doing my internships report on the topic of “Reference Group Influence on Purchase Decision Making of Soft Drinks: A Demographic Study Based on Clemon.”
The objective of this research is to measure the reference group influence on purchase decision making of soft drinks. This research is descriptive in nature. To conduct this study the primary and secondary are used. My research report initially provides a nominal idea of the beverage industry in our country. Then derailed overview of AKIJ Group and also AKIJ Food & Beverage Ltd (AFBL), which is a venture of Akij group, is presented. After the company descriptive part, analysis segment is incorporated. Starting with 4ps analysis of AFBL, budgeting & sales forecasting, SWOT analysis. The current competitive culture in the soft drinks industry leads the organization to the difficult situation to survive. Therefore, this study enables the marketers to take appropriate decision about the consumers buying behavior. The sample of 172 is determined through non-probability convenience sampling technique. Data is collected through structured questionnaire and in-depth interview. Internet is also used for collecting secondary data. The data is analyzed through different mathematical tools. Microsoft excels, Statistical Package for Social Science (SPSS16.0) are used to analyzed the data. This research found that consumers own personality is the most influencing factor to take a purchase decision regarding the soft drinks’. Consumers collect information from those who know more about
This website stores data such as soft drinks on site the other hand they do not collect information from those who work in soft drink cookies to enable essential functionality, as well as marketing, Company. This research also found that celebrity and role model have less impact on the consumers personalization, and analytics. You may change settings at any time toyour choose a specific brand of soft drinks. or accept the default settings.
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Table of Content Serial No.
Particulars
01.
Letter of Transmittal
02.
Acknowledgement
03.
Executive Summery
Page No.
I. II. III.
Chapter 01: Introduction
1
Introduction
1-2
1.1
Background of the Report
3
1.2
Significance of the Report
3-4
1.3
Scope of the Report
4
1.4
Objective of the Study
4
1.5
Methodology
4-5 Chapter 02: Literature Review
2
Literature Review Chapter 03: Company Overview
6-14
3.
Parent Company overview (AKIJ GROUP)
15-19
3.1.
AKIJ FOOD & BEVERAGE LTD (AFBL)
20-51
3.10.
In-depth Interview Result
52
Chapter 04: Analysis and Findings
4.1
Frequency Analysis
53-63
4.2
Descriptive Statistics(t test)
64-67
Chapter 06: Major Findings
5 Major Findings This website stores data such as Chapter 06: Conclusion and Recommendation cookies to enable essential site functionality, as well as 6.1marketing, Conclusion personalization, and analytics. You 6.2. at anyRecommendation may change your settings time or accept the default settings. Chapter 07: Bibliography Privacy Policy
69 70
7.1.
Raw Table
71-73
7.2.
Reference
74
Marketing
Chapter 08: Appendix
Personalization 8.1. Analytics Save
68
Questionnaire Questionnair e
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75-77
List of Figure
Serial No.
01
Graph Name
Soft Drinks purchaser decision-making decision-makin g process and major influence
Page No.
7
factors 02
Relationships between Buying Attitudes and the Influence of Parents
11
Reference Groups 03
Relationships between Buying Attitudes and the Influence of Friends
12
Reference Group 04
Factors that Affect Reference Group Influence
13
05
Revenue growth graph
21
06
Occupation
53
07
Education Level
54
08
Age of the customers
55
09
Search Information from those who know more about SD
56
10
Collect Information from friends, family members, relatives, coworke
57
11
Change mind if I see that retailers use specific brands
58
12
Valued information the most that my family members provide about
59
soft drinks. 13
My friends’ evaluation and preference prefe rence will influence my choice
60
14
Other people’s recommendation may influence my final decision decision
60
15
To consider classmates’ preference decision to purchase soft drinks is
61
influenced much This website stores data such as cookies to enable essential siteTend to choose those brands that will enhance consumers’ 16 consumers ’ image in functionality, as well as marketing, others’ eye. eye. personalization, and analytics. You may change your settings at any time 17 Consumers feel that those who purchase or use the soft drinks of a or accept the default settings. particular brand brand possess the characteristics characteristics which they they would like like to
18
Personalization
Brand Brand helps helps consume consumers rs to show others others who they are, are, or who they wou like to be
Analytics Save
62
have
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62
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63
List of Table
Serial No.
01 1.1
Table Name
Gender Cross Tabulation: Friends Evaluation * Education Cross tabulation
Page No.
53 54
02
Income Level of Customers
55
2.1
Rank Order of influencing factors
56
03 3.1
Seek information from those who work in soft drinks (SD) company My choice of soft drinks is influenced by other consumers’ who
57 58
consume specific brads 04
Information collect from others
59
4.1
The preferences of family members can influence choice of soft drinks
61
most. 05
Consumers think those who consume other brand sometimes sometimes valued b
63
others. 5.1
Descriptive Statistics of Informational Information al influencing factors
64
06
Result of Test of Hypothesis for above average factors on consumer decision making of soft drinks. Descriptive Statistics of Utilitarian influencing factors
65
6.1
07 Result of Test of Hypothesis for utilitarian influencing factors on This website stores data such as drinks cookies to enable essential siteconsumers’ decision making of soft drinks functionality, as well as marketing, 7.1 Descriptive Statistics Value Expressive influencing factors personalization, and analytics. You may change your settings time of Test of Hypothesis for utilitaria 08 at any Result utilitarian n influencing factors or accept the default settings. consumers’ decision making of soft drinks. drinks . Privacy Policy Marketing Personalization Analytics Save
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65 66
66 67
1. Introduction Introduction
1.1.Introduction:
Fast moving consumer goods (FMCG) are experiencing a successive suc cessive growth in our country and goods like beverages are in a flourishing state. Everyday thousands and thousands pieces of beverage products are being consumed. And to meet the demand and diversified taste, local as well as foreign companies are immerging and investing in this venture. Many local companies and foreign franchises have developed an extreme competitive environment in the beverage market. The beverage market is basically a compilation of wide range of mineral products with certain attributed affixed with it. The major product categories that are the core determinants d eterminants of our market are enlisted below:
C ar bona natted Soft D r i nk ((C C SD ) : These ranges of products are generally called refreshing drinks. The concept was developed many man y decades before by a pharmacist in United States of America. Initially it was consumed under the prescription of doctors but later as time passed the concept was refined to make it a product for for general consumption any time. Water is being process with various flavors along with carbon-dioxide (CO2) to obtain a tasty flavored fizzy drink that provides refreshment. Carbon-dioxide is being used to obtain the fuzziness that provides refreshment to human body.
neral ral such water: Mi ne This website stores data as which is healthy for human consumption. Companies establish treatment plants to produce cookies to enable essential site functionality, as well as marketing, water You for the consumers. personalization,mineral and analytics. may change settings at: any time fruits extracts are being process with various ingredients to form a liquid your ruit t J uice uice: F rui Natural or accept the default settings.
Natural water is being chemically treated to attain a refined form of p pure ure water
condensed juice that can be consumed within a certain period of time. Privacy Policy
Energy Drink : The main conjunction of these products is that, it provides energy to the
consumer after consumption. The drink involves mineral water along with some ingredients Marketing process with Carbon-dioxide depicting a final product that provides energy to human being. Personalization Analytics Save
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F lavo lavorr ed wa wate terr : It is form of mineral water processed with mild flavor that gives the water a taste a bit different from the conventional mineral water. The concept is quite new and hasn’t been that much popular in our country.
N on-A lco lcoho holilicc M Ma alt B Be ever ver age: Malt beverage is an American term for both alcoholic and nonalcoholic fermented beverages, in which the primary ingredient is barley, which has been allowed to sprout ("malt") slightly before it is processed. A non-alcoholic beverage brewed in this fashion is technically identical to "non-alcoholic beer." Such a beverage is prepared by removing alcohol from the finished product to make it an alcohol free drink giving a close taste of beer and also the energy.
The entire beverage market in our country experienced an annual growth of 6% in 2008 and the projected growth this year is close to 10%. These entire product segments mentioned before, plays a vital role in our beverage market and the percentile breakdown of the market share of each of the product categories are graphically shown below:
0% 1%
11%
CSD 41%
21%
Mineral water Fruit Juice Energy Drink Favoured water Non-Alcoholic Malt Beverage
26%
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(Figure: A) Ref: “The A.C Nielsen Company Ltd”
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For my internship report, I have focused on the topic which is “Reference Group Influence on Purchase Decision Save Accept Allmaking of Soft Drinks”. Throughout my internship period, I worked with a
beverage manufacturing company compan y AKIJ FOOD & BEVERAGE LTD, and within this period I got exposed to the entire functioning of how a beverage company operates in the market (Sumit Chakraborti, 2009). 1.2. Background of the Report:
In the recent recent years people become busier in their daily living. As a result they don’t have enough time to spend in family life. For that reason people are becoming depended on others more and more for food and others goods that are necessary for their daily lives. Because of these reasons many food manufacturing organizations have emerged in recent years. The demand of beverage bev erage is also increasing as the demand of prepared food increases. The food that are consumed daily and highly demanding are fast moving consumers goods (FMCGs). The soft drinks industry as a part of FMCG industry is very competitive in nature. The organizations doing business of fast moving consumers goods need to be very much aware about every aspects of the consumers behaviors. Because consumers are also very much conscious about the products they consumed. At the same time as the different organizations are trying to capture the limited number of consumers, the competition among the organizations organiz ations also increasing day by day. As a result consumers have more alternatives to choose. The soft drinks industry as a part of FMCG industry is also very competitive in nature. So this study is based on the soft drinks industry. As the requirement of BBA internship program I encouraged to make my report on the reference group influence. My practical knowledge – achieving from which is a . ( This website stores data suchthe as three months working in cookies to enable site product manufacturer helps me to do that. leadingessential consumer’s product consumer’s that. functionality, as well as marketing, personalization, and analytics. You The topic of this study may change your settings at any timeis “ Reference Group Influence on Purchase Decision Making of Soft or accept the default Drinks ” settings. which helps me to achieve my report objectives. objectives. ‘Akij Food & Beverage Ltd AFBL)’
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1.3.Significance of the Report:
Akij Food and Beverage Ltd. (AFBL) is always trying to provide the quality food to the customers. At the same time they has to compete with other organizations. For achieving the consumers insight more study on consumer’s behavior is needed. This study helps the organizations to know the greater insight of the consumers. Because the soft drinks consumers are highly flexible and dynamic. dynami c. Understanding about The reference groups’ influence on purchase decision making of soft drinks will help the organizations to take the right strategy compatible in the market. 1.4.Scope of the Report:
This report covers the reference group influence which is i s a very important aspect of the consumer’s behavior. Every organization does their all activities based on their consumers. So organizations need to know how their consumers behave in response with specific activities. We can also gather knowledge from this report about this industry. 1.5.Objective of the Study:
The main objective of the study is to measure the reference group influence on purchase decision making of soft drinks. The supporting objectives of the present study are 1. To identify the reference group that has more power to influence on the purchase decision
for soft drink;
2. To discover This website stores data such as which information the consumers value more getting from reference group; 3. To know whether the celebrity or role model have power to influence on purchase decision cookies to enable essential site functionality, as wellmaking as marketing, of soft drinks; personalization, and analytics. You 4. settings Whether thetime consumer tend to show their personality through their buying process of soft may change your at any or accept the default settings.
drinks;
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1.6.Methodology: 1.6.1. Type of Research: This is a descriptive research. Research methodology mainly focused
on quantitative method and survey study considered as a research technique. 1.6.2. Sources of Data: Primary: Data collected for the first time through the structured questionnaire. Survey method
and in depth interview are conducted for data collection. Secondary: Data collected for some purpose other than the problem at hand from the secondary
sources. The available literature used in this research is collected through reviewing different articles, books, journals, published reports, and relevant websites . 1.6.3. Data Analysis technique:
Collected data is analyzed by using appropriate mathematical tools based. Statistical Package for Social Studies (SPSS 16.0) and Microsoft Excel 2007 are used for data analysis. 1.6.4. Population and Sample:
As the study is Reference group influence on purchasing decision making of soft drinks the population included mainly the consumers of soft drinks in Dhaka City in different age. In this study 172 consumers of soft drinks is selected from the Dhaka city by using non probability convenience sampling technique to survey. 1.6.5. Limitations
The study caused some difficulty. During the survey our surveyors faces some constrains. The limitations are: This website stores data such as 1. Lack of practical knowledge of both interviewer and customers (respondents). cookies to enable essential site Lack of understanding between customers and interviewers. functionality, as2. well as marketing, personalization, and analytics. You 3. Customer’s unwillingness to response. response. may change your settings at any time or accept the default settings. 4. Convenience costs. Privacy Policy
5. Lack of sufficient time.
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2. Literature Review 2.1. Reference Group:
People whose attitudes, whose attitudes, behavior, behavior, beliefs, beliefs, opinions, opinions, preferences, preferences, and values and values are used by an individual an individual as the basis for his or her judgment. One does not have to be (or even aspire to be) a member of a reference group to be negatively or positively influenced by its characteristics. its characteristics. Power exerted on an individual by a reference group to conform to the groups the groups (or generally accepted) norms of behavior. behavior. A reference group is defined as “an actual or imaginary individual or group conceived of having significant relevance upon an individual’s evaluations, aspirations, or behavior” (Park and Lessig, 1977). Bearden and Etzel (1982) define a reference group as a person or group of persons that significantly influence the behavior of an individual, and argue that the Reference Group concept (Hyman, 1942) provides a way to comprehend why many ma ny individuals do not behave like others in their social group. Reference groups are usually conformed by the social network of an individual: individua l: family members, friends and colleagues, and inspirational figures (Bachmann, John, and Rao, 1993), and can be a source of brand associations that mold the mental representations a consumer has of himself (Escalas and Bettman, 2003). Regarding the consumer purchasing behavior of a Soft drink, in addition to traditional marketing claim that a consumer’s purchasing purchasing motivation will be influenced directly by the soft drinks related factors including: Newest flavor, fate proposition, the relative price, a the availability, and reference group influence. Consumer behavior research on consumers’ social and interpersonal environment This website stores data such has indicated thatasthe Soft drinks consumer’s final purchasing decision will also be influenced by cookies to enable essential site reference (such as friends, family, work associates and etc.) on whether to buy a specific functionality, as well asgroups marketing, personalization, and analytics. You product and which may change your settings at anybrand time or model to choose among competing alternatives (Yang, J. et al, 2007), as or accept the default shown insettings. Figure 1. Privacy Policy Marketing Personalization Analytics Save
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Figure 1: Soft Drinks purchaser decision-making process and major influence factors Reference Group: influences
Need Nee dR Reco ecogni gnitio tio
Inform Informati ation on Sear Searcc
Newest
Fate
Price
Flavor
Alternative
Availa Availabil bilit it
Pro ositio
Decision Making
Evaluation
Post-purchase Behavior
Inter Persona Persona Influence
2.2.Types of Reference Group:
As a consumer, your decision to purchase and use certain products and services, is influenced not only by psychological factors, your personality and life- style, but also by the people around you with whom you interact and the various social groups to which you belong. The groups with whom you interact directly or indirectly influence your purchase decisions. d ecisions. The reference groups are: I) Primary and secondary reference groups: A primary reference group is one with which an individual interacts on a regular basis and whose opinion is of importance to him, family, neighbors, close friends, colleagues and co- workers are examples of primary reference groups. Secondary reference groups are those with which an individual interacts only occasionally and does notdata consider their opinion very important. This website stores such as cookies to enable essential site functionality, as well as marketing, II) Formal and informal reference groups : Rotary, lions, Jaycees are some of the well – well – known known personalization, and analytics. You may change your settings at any time in our society. Labor unions, social clubs and societies are other types of social reference groups or accept the default settings. formal reference groups to which individuals may belong. A formal reference group has a highly defined structure, specific roles and authority positions and specific goals. Privacy Policy In contrast, an informal reference group is loosely defined and may have no specified roles and Marketing goals. Meeting your neighbors over lunch once a month for friendly exchange of information is an Personalization instance of an informal reference group. Analytics Save
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III) Membership and symbolic reference groups : A membership reference group is one to which a person belongs or qualifies for membership. All workers in a factory qualify for membership to the labor union. A symbolic reference group is one which an individual individua l aspires to belong to, but is not likely to be received as a member (August 4, 2010 By Hitesh Bhasin ). 2.3.Types 2.3. Types of Reference Group’s Influence:
A reference group’s influence on purchase decision of a person p erson depends on that person’s susceptibility to reference group influence and the degree of involvement with the group (Ashraful et al, 2008). Three reference groups, thus importantly influence consumer behavior: informational influence, utilitarian influence, and value-expressive influence (Park and Lessig, 1977; Bearden and Etzel, 1982), which are briefly described below.
Informational Influence:
The informational influence is based on the desire to make informed decisions and optimize the choice. Kelman (1961) suggested that an individual would accept an influence that improves one’s knowledge and ability to cope with the environment. env ironment. The informational influence only functions when the individual regards the behavior and value of reference group members as potentially useful information and takes them into consideration. When a consumer lacks the knowledge of a certain
product and the experience of purchasing this item, one may perceive the information and recommendation from his/her reference group as credible and thus accept them with certain confidence. Marketing practical applications can be seen from the use of expert power and This website stores data such as cookies to enable essential site internalization in advertising with the ads that feature doctors (or actors) impersonating doctors as functionality, as well as marketing, personalization, and analytics. spokespersons forYou over-the-counter medicines. A recent TV advertisement tells viewers to: “Join the over-the-counter may change your settings at any time millions, switch to Netzero” (internet service provider). When considering purchasing a cell phone, or accept the default settings. one may ask his/her friends and family members for information about different brands and models Privacy Policy in the purchasing consideration, or one may also search online group discussions about cell phones Marketing in comparing different brands and models. Personalization Analytics Save
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Utilitarian Influence:
This influence can be explained by the so-called so- called “compliance process” in which an individual is willing to satisfy a certain group’s expectation in order to obtain the praise or to avoid the punishment from the group (Kelman, 1961). The best demonstration for the utilitarian influence may be the famous Asch 1335 Experiment in which participants were found to willingly conform to the group answers, even changing their original right answers (Rock, 1990). Suggesting in the advertisements that one may obtain social approval and acceptance by just using a certain commodity, will have an influence on certain groups of consumers. Advertisements for personal care products in which consumers are punished by co-workers or friends for not using anti-dandruff shampoo, deodorant, or mouthwash, in fact, tak e advantage of the reference group’s utilitarian influence. Recent TV advertisement examples include: “Watch the show everybody's talking about” (Nancy (Nanc y Grace's Show); and “I want people looking at my clothes and say: ‘WOW, you look great’” (Some retail store). Value-Expressive Influence:
This influence may be best explained by the “identification process” in which people are willing to better express themselves to the society by making themselves similar to the group that they want to belong to (Kelman, 1961). Under this influence, one may actively follow the groups’ beliefs and rules while neglecting the praises or punishments and decide to completely accept and internalize the value of that reference group. One good example of using this influence in marketing practice practice was used by soft drink giant Pepsi; the company has aired its Young Generation brand image extensively so that itsstores targeted have accepted the value of this specific group. Recent TV advertisement This website data consumers such as example includes, cookies to enable essential site “See other women's success and learn more” (Yogurt advertisement); “Dad: Life functionality, as well as marketing, insurance is something personalization, and analytics. You parents buy and benefit their children. Child: Do you have life insurance? may change yourYes, settings at any time Dad: of course.” (Prudential Finance); “I'm protecting my family by Garden State Life Insur ance; ance; or accept the default settings. I do the same, why don't you do the same with us?” (Garden State Life Insurance). Sony has a famous celebrity playing a successful manager’s role in its Sony cell phone advertisement implying that Privacy Policy people who use the same cell phone will have the same characteristics characteristics with that expected group. The Marketing Motorola’s i836 is a cell phone packed pa cked with business-related business-related features and applications. The clamshellPersonalization style phone has a sleek design and color with no bright color faceplates, which is referred as the Analytics executive gray (Shaw, 2005). This research is developed based on the well-recognized belief that the
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trait of susceptibility to interpersonal influence not only varies across individual consumers, but also varies across cultures at a larger degree. However, the literature l iterature of East Asian consumers’ susceptibility to social influence is very limited. In fact, there is no published research addressing the issue of comparing the susceptibility of the reference group influence on the consumers’ purchasing behavior under two totally different cultures. In order to be a successful competitor in a global marketplace, companies need to apply effective marketing strategies that are sensitive to cultural differences across different regions and countries. As such, this paper is an attempt to address the above issue through an empirical e mpirical study with the cell-phone industry Reference Group Influence on Product & Brand:
The influence of reference groups may operate with respect to both product and brand. Reference groups, then, influence both the type of product purchased and the brand name selected. Brand Strong(+)
Weak(-)
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Product Weak(-) Clothing Furniture Magazines Refrigerator(type) Toilet soap Soap Canned food Laundry soap Refrigerator(brand) Radios
Strong(+) Cars Cigarettes Soft drinks Drugs
Instant food Air conditioners TV (B and W)
The Role of Reference Group Influence in Consumer Decision Making:
F igure A: Relationships between Buying Attitudes and the Influence of Parents asReference Groups Brand importance for mother (+) Age (-) Time spent with watching TV on
ENJOY SHOPPING WITH PARENTS
+
NORMATIVE NORMATIV E INFLUENCE OFPARENTS Perceived knowledge of parents (+)
+
Conformity (+)
+
Family-orientation Family-o rientation (+) ( +)
INFORMATIONAL INFLUENCE OF PARENTS
+
Self-confidence Self-confide nce (-) SHOP SH OP WITH WITH FAMI FAMILY LY MEMBE MEMBE
Cautiousness Cautiousne ss (+)
+ Male (-)stores data such as This website cookies to enable essential site functionality, as well as marketing, personalization, and analytics. You may change your settings at any time or accept the default settings. Privacy Policy Marketing Personalization Analytics Save
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F igure B: Relationships between Buying Attitudes and the Influence of Friends as Reference Groups Male (+), Conformity (+) Number of household household members members (+) Ag (-)
+ Time spent with Internet on week-ends (-) NORMATIVE INFLUENCE OF SPEND MORE WHEN
Innovativeness Innovativen ess (+) SHOPPING WITH FRIENDS
Perceived knowledge knowledge of friends (+)
INFORMATIONAL INFLUENCE OF FRIENDS
ENJO EN JOY YS SHO HOPP PPIN ING G WIT WIT
+
FRIENDS
Self-confidencee (-) Self-confidenc
+ Consumer knowledge (+)
Importance of relationship with friends This website stores data such as (+), Negligence (-), Cautiousness (+) cookies to enable essential site functionality, as well as marketing, personalization, analytics. Perceivedand knowledge ofYou parents (+) may change your settings at any time or accept the default settings. Privacy Policy Marketing Personalization Analytics Save
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-
SHOP ALONE
-
2.4.Factors that Affect Reference Group Influence:
The degree of influence that a reference group exerts on an individual’s behavior usually depends on the nature of the individual and the product and on specific social factors.
Individual
Family One’s Own CultureOne’s Own Culture Culture
One’s Own Culture Culture Friends
Social Class
One’s Own Culture Culture
One’s Own Culture Own Culture
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Other Culture
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Figure: Major Consumer Reference Groups
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Credibility, Attractiveness, and Power of the Reference Group:
A reference group that is perceived as credible, attractive, or powerful can induce con consumer sumer attitude and behavior change. Conspicuousness of the Product:
The potential influence of a reference group on a purchase decision varies according to how visually or verbally conspicuous the product is to others (Schiffman et al).
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3. COMPANY BACKGROUND: PARENT COMPAN COMPANY YO OVE VE RVI E W ((AKI AKI J G ROU ROUP) P)
3.1. History
Enlightening the past history of the business world in Bangladesh, AKIJ GROUP OF INDUSTRIES is considered to be one of most profound and aged industries that is still sustaining with great success and prosperity. It was more than fifty years ago the company emerged into the market, and it was as small-time jute traders. Entrepreneur, Founder and life time Chairman Late Mr. Sheikh AkijUddin then initiated the business in 1950s with a single product of cigarette naming Akij Biri. This brand is one of the biggest and well known units of Akij Group and it is considered to be one of the oldest and most well-known products across the country and in the few international market as well. Then in the late 70s Dhaka Tobacco Industries came to the fold of Akij Group when government decided to disinvest and hand over the factory to the private sector from the nationalized sector. It was the first booming stage of Akij Group and from then onwards this entity diversified its business in various product line and engrave the peak of success. From such small beginnings, it has expanded into one of the top corporations in Bangladesh, and not only in size. Akij Group is proud of its infallible quality and excellent service by b y valuing its consumers as unique individuals and trying best to provide merchandise to suit the needs of each distinct This website stores data such as consumer group. AKIJ group has never limited limited its aims to prof profit it making. Besides playing a part in cookies to enable essential site developing the country commercially, it has also worked hard to preserve its environment and culture. functionality, as well as marketing, personalization, and analytics. You The company is proud to say that the word wastage means little to them; all their factories have been may change your settings at any time or accept the default settings. constructed with recycling recycling and the environment in mind. The non-profit making concerns of the
Group are involved directly in sustaining the progress of Bangladesh. A large number of people are Privacy Policy
employed by them, and cared for as members of the AKIJ family.
Marketing Personalization AKIJ group copes with the present versatile market by being flexible. Creative new ventures are the Analytics secret of our accomplishments. Portfolios of their ventures are enlisted in the following page: Save
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SL NO.
Name of the Company
Product
01.
Akij BIDI Factory Ltd.
Hand Made Cigarettes
1950
02.
Akij Transport Agency Ltd.
Transport
1950
03.
SAF Industries Ltd.
Crust & finished Leather
1960
04.
Dhaka Tobacco Industries Ltd.
Cigarettes
1966
05.
Akij Printing & Packages Ltd.
Printing & Packaging factory
1974
06.
Dhaka Tobacco Industries Leaf Processing Plant.
Tobacco Leaf Processing Plant
1981
07.
Akij Corporation Ltd.
Trading House
1983
08.
Akij Housing Ltd.
Housing
1987
09.
Akij Match factory Ltd.
Match
1992
10.
Akij Jute Mills Ltd.
Jute Yarn & Twine
1994
11.
Akij Cement Company Ltd.
Cement
1995
12.
Akij Textile Mills Ltd.
Cotton Yarn
1995
13.
Akij Pharmaceutical Pharmaceuticalss Ltd.
Medicine
1996
14.
Akij Particle Board Mills Ltd.
Particle & Hardboard
1996
15.
Akij Computer Ltd.
Hardware & Software
1997
16.
Sonar Bangla Cement Ltd.
Cement
1998
17.
Akij Online Ltd.
Internet Service Provider
2000
18.
Akij Food & beverage Ltd.
Food & beverage
2006
19.
AkijZarda Factory Ltd.
Flavoured Chewing Tobacco
2000
20.
Nebula Ink Ltd.
Ink
2001
IT Education & Training
2001
21. data Akij Institute This website stores such as of Technology Ltd. cookies to enable essential site 22. asSavar Industries (Pvt.) Ltd. functionality, as well marketing, personalization, and analytics. You 23. Afil Toiletries Ltd. may change your settings at any time or accept the default 24 settings. Akij Power Ltd.
2001 Toiletries
2003
CNG
2008 2008
25
Akij Poly Fibre Ind. Ltd.
Poly Fibre
26.
Addin Hospital
Health care
Marketing27.
Akij Securities
Corporate share broker house
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Year of the Establishmen
2008
Personalization Analytics Each of the ventures of AKIJ Group is entitled to be profitable and this aspect makes them extremely
financially strong in the market. Among all the ventures or units of Akij Group, Dhaka tobacco
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industry is
the most
profitable one which compiles
of
the products
like Ak AkijijB B ir i,
D olphi lphin nm ma atc tch, h, F i r eF ox m ma atc tch h and other shown below:
3.2. Statistical Data
Akij Group is not a public limited company and not enlisted in the stock exchange market. It is a complete privately owned venture with no external public share and corporate share. Each of the ventures of AKIJ Group is entitled to be profitable and this aspect makes them extremely financially strong in the market. The directors are the offspring of the late chairman and founder. With no debt in the market, Akij Group of Industries are operating and performing in the optimum level and is considered to be one of the top notch leading industries in Bangladesh. Some statistical facts of Akij Group is stated below:
Total number of employees: 62000 (approx) in various v arious categories.
Annual turnover (revenue) of the entire group in year 2007-2008 was Tk.23.59 billion/
This website stores Tk.2358.66 data such as(Crore) approx. cookies to enable essential site Tax paid in year 2007-2008 was Tk.11.24 billion/ Tk.1124 (Crore) approx functionality, as well as marketing, personalization,and analytics. Tax payingYou amount is close to 3% of the annual national budget of Bangladesh. Bangladesh. may change your settings at any time or accept the default settings.
3.3. Mission (Akij Group) Privacy Policy
Core mission: Reaching escalating heights in Bangladesh and beyond.
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AKIJ GROUP is committed to provide the best product/service quality to their targeted consumers
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and this commitment enhances them to accomplish their goal. Consumer satisfaction from their
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quality products is one of their major goals and thus sustainable product quality is the key concern of this company. The 4ps of Product, Price, Place, and Promotion are subjected su bjected to their mission and to execute and coco ordinate them properly in order to sustain and enhance consumer satisfaction and also encounter proper profitability. 3.4. Organizational Structure (Akij Group)
Head office of Akij group is compiled in two multistoried building naming AKIJ Chamber &Mofiz Chamber situated in 73 Dilkusha C/A & 75 Dilkusha Dilkusha C/A, Motijheel, Dhaka. Business operations of all the companies are conducted in these two 12 floor and 8 floor corporate houses. Akij Group maintains a mechanistic organizational structure where bureaucratic bureauc ratic environment prevails in the work place. Decision making processes are very ver y centralized towards the directors and top-level executives. Organogram of the group is graphically shown in the following: Chairman
Managing Director
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General
Directors
Directors
Assistant
Assistant
General
General
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Each of the companies has its own directors who are the offspring of Late Mr. Sheikh AkijUddin.
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And for each company there is assistant director and general manger accountable to the respective
Savedirectors for Accept their All operations. The following departments:
F i nance nance & A cco ccountsDep untsDeptt
A udi udi t D ept
A dmi nist ni strr ation D ept
H uma uman r eso sour urce ce ( H R ) D ept
P urcha ur chase se D ept
I mpor t & E xpo xporr t D ept
Ad & C re rea ati ve D ept
I T Dep Dept
Tra Tr ansp nsport De Dep pt
Are common for each of the enlisted twenty-seven companies and each department has individual sub-units working separately for all the companies. With all these, Akij Group has turn out to be be a gigantic industry which compiles varies category of business and are raging success towards every sector. Lately Akij Group has captivated a huge venture in the beverage market of Bangladesh and has entered in the market with the name AK I J F ood and B ever age L i mite ited d (A F B L ).
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3.5. Overview: AKIJ FOOD & BEVERAGE LTD (AFBL)
3.5.1. AFBL: Background
The company Akij Food &Beveargae Ltd (AFBL), a unit of Akij group, came into business in year 2006. It incorporates manufacturing of variety sort of snack and beverage products and selling them to the local market as well as some of o f the international market. AFBL was a project of TK-450 crore (appox) and the investment was being made by the parent company Akij Group itself, no financial outsourcing was made. And any further investment needed will be supported by the parent company as well. Since the invasion of AFBL, the company is using its strong resources continuously to provide various ranges of products in different product lines to its customers. customers. 3.5.2. Statistical Data
Some of the statistical facts are stated below:
Total investment: Tk. 4.5 billion/450 billion/450 Crore (approx)
Turnover (revenue) in year 2010-2011: Tk 100 crore (approx)(heigly confidential)
Total number of employees: 338 approx
Sale Sa less & M arke rk eti ng: 18 180 0 employ loyees (ap (app prox)
F acto actorr y pe perr sonne sonnel:l: 158 em emplo ploye yee es ( ap app pr ox)
This website stores data such as Employees of the cookies to enable essential siteDepartments of Finance & Accounts, Audit, Administration, Human resource (HR), functionality, as well as marketing, Purchase, Import & Export, Ad & Creative, IT, Transport are NOT included in the 338 total employee personalization, and analytics. You may change your settings at any time departments work for AFBL but they are considered to be the employees of list. Employees in these or accept the default settings.
AKIJ Group in their respective departments and all their salaries and benefits are disbursed as per Akij Group’s notion not from AFBL. AFBL.
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Revenue growth graph:
Sales growth
2000 1612.1 1500 907.6
Sales (in Tk. million)
1000 481.4 500
0
Series1
Y ea ea r: r: 2 00 00 6
Y ea ea r: r: 2 00 00 7
Y ea ea r : 2 00 00 8
481.4
907. 6
1612.1
Year of o perat ion
Figure: 1B (Information in the graph are accurate and it is from AFBL source. Extreme confidentiality should be maintained)
Sale revenue in year 2006 was Tk.481.4 million/ Tk.48.14 Crore (approx) Sale revenue in year 2007 was Tk.907.6 million/ Tk.90.76 Crore (approx)
Sale revenue in year 2008 was Tk.1612.1 million/ Tk.161.21 Crore (approx)
Sales Growth rate (2007): 88.5%
Sales Growth rate (2008): 77.6%
Sales revenue from Jan2009 to June2009 is Tk.1282.6 million/ Tk.128.26 Crore (appox) already. If forecasted sale for the other half year of 2009 is double the sale of the first half then total revenue for 2009 stand to be Tk.2565.2 Tk .2565.2 million/ Tk.256.52 Crore (approx). Th Then en expected Sales Growth (2009) rate would be: 60% approx.
This website stores data such as cookies to enable essential site functionality, as well as marketing, The tag line of AFBL is “BRINGS QUALITY IN LIFE” LIFE” personalization, and analytics. You may change your settings at any time 3.5.3. Mission: or accept the default settings.
To be the market leader in quality food & beverage sector discovering & satisfying the desire & need Privacy Policy of the community working in harmony with our customers, employees and business partners partners.. Marketing Personalization Analytics Save
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3.5.4. Vision:
To be the leading food & Beverage brands excelling in product quality, social, technical & marketing creativity; and service to our customers through the skills and cordial commitment co mmitment of our employees. According to Late Mr. Sheikh AkijUddin regarding AKIJ Food and Beverage Limited (AFBL), “We
will manufacture and introduce those high quality products in the market that we ourselves and our fam famii ly will wil l always always use; use; we wil willl NOT N OT j ust pr pr od oduce uce pr pr od oducts ucts for the consum consume er s in i n the mar ket and let our family consume other foreign products”. 3.5.5. AFBL: Morale, Ethics & Values:
Believing in quality and excellence in service
Believing open communication, personal responsibilities, integrity, and active participation
Supporting the creative diversity and share of ideas Building culture of learning based on leadership, teamwork, accountability, and co-operation. 3.5.6. Internal Situation Analysis 3.5.6.1. Capabilities of AFBL
F acto ctor y & M achinery: Factory of Akij Food & beverage Ltd has been established in a beautiful site at Krishnapur, Dhamrai Dhaka. It has come with one of the best food & beverage industry in Banglad Bangladesh. esh. All the machineries are being imported from two international well reputed companies in Germany naming The
K r onesG onesGrr oup up,, he hea adqua uarr te terr ed in i n N eutraub utraubliling ng , Germany&N i ngb ng bo Si Sip pa Safe Safety ty E quip ui pment Co.,
This website stores data such as L td . All the machineries are fully automatic and digitally controlled. Such high-tech production cookies to enable essential site functionality, as well as marketing, plants that is sensible to reject products itself that fails to meet standard level that has been set. In personalization, and analytics. You may changetotal your settings at any there are onlytime six companies in the sub-continent using such sophisticated machineries to or accept the default settings.
manufacture CSD products, and among those companies AFBL is one of them. This factor reflects the quality of the factory and the machineries which in turn reflects the quality standard of the
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products of AFBL. For any technical breakdown highly experienced and trained engineers are there
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to serve round the clock.
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Photo: (Factory)
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Photo: (Machinery)
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Photo: (Machinery)
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Photo: (Machinery)
F i nanc nancial ial:: AFBL has a strong financial background as because 100% of its financial back up is being provided by the parent company AKIJ GROUP. All the initial investments regarding the establishment of the company, its products and even for the marketing purpose, the parent company provided full support. No financial out-sourcing such as debt or bank loan was being made by AFBL. Because of such strong financial back up, huge marketing activities, promotional campaigns were been possible for This website stores data such as its products to strongly compete with its competitors. And now after three years of operation the cookies to enable essential site functionality, as well asismarketing, company solvent enough to finance its promotional activities by itself but if furthermore huge personalization, and analytics. You investments required p rovide full flagged support. may change your settingsare at any time then AKIJ GROUP is always there to provide or accept the default settings.
H um uman an r esour source ce:: Privacy Policy
AFBL believes that their teamwork is their greatest asset. Useful contributions made by each Marketing individual bring them much closer to their goals. AFBL A FBL made up of a group of passionate individuals, Personalization Analytics uniquely qualified from diverse disciplines but working towards their vision. AFBL ensures that their
are provided with: Saveemployees Accept All
A friendly and supportive environment that encourages encou rages their people to develop their potentials to an optimal level.
A true quality of professionalism that can be found in all world-class multinational companies
Team oriented professionals, who contribute to the greater whole of the organization through their participation in decision making situations.
F uncti unctiona onall D De epartm artme ents From the production till the selling of the AFBL’s products, several departments depa rtments work interconnected and they are outlined below:
production process of AFBL’s products products Production dept: This department handles the entire production process
catego ries Marketing Dept: This department is divided into four categories Brand
Dept: Develops the marketing and promotional strategies for AFBL’s products and Dept:
executes them.
Sales Dept : Forecast, Pursue, Co-ordinate & Monitor the entire nation wide sales of AFBL’s products. products.
Sales-force Training Dept : Trains, pursue to work, motivates & monitors the sales force working in the field for AFBL.
Distribution
Dept : Distributes accordingly the final products from the factory to the entire
countr y’s y’s individual distribution points from where products of AFBL are being sold to the retail outlets. This website stores data such as cookies to enable essential site The following departments: F i nance nance & A cco ccount unts, s, A Aud udii t, A dmi nist ni strr ati on, functionality, as well as marketing, Purch Pur cha ase se, , I mpor tYou & E xp xpo or t, A Ad d & C r eati ve, I T & Tr ansp nspo or t of AKIJ personalization, and analytics. may change your settings at any time or accept the default settings.
H Hum uma an reso resource ur ce ( H R ),
GROUP conducts the department operation for AFBL to carry out and complete the departmental
portfolio of Akij Food & Beverage Ltd
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3.5.7. Organogram of AFBL is provided in the following page:
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3.5.8. 4Ps ANALYSIS OF AFBL:
Thee 4ps analysis of a company involves derailed study of the company’s Product, Price, Place and Th Promotion. Each of these segments of AFBL is exemplified below.
Products: Akij Food & Beverage Ltd (AFBL) believes in providing optimum quality products to value its customers. All the high-tech machineries and factory site is established to enhance the capability to satisfy consumer needs in a profound quality processed manner. AFBL has categorized its products in eight products line and each line incorporates various va rious brands to captivate the market. Groups or the product line are been distinguished by the compan company y based on the machinery used for manufacturing the products. AFBL has the planning o off introducing more different and unique products in their product line and even they are planning to diversify more on their product line. Tabular presentation of the products as the product line is shown in next page: Product line1 (CSD)
Product line-2
Product line-3
Product line-4
(Energy Drink)
(Non-Alcoholic Malt Beverage)
(Mineral Water)
This website stores data such as MOJ O site cookies to enable essential functionality, as well as marketing, (Bottle-250,500, personalization, and analytics. You may change your settings at any time or accept the default settings.
SP SPEE E D
WI LD BRE W
(Bottle-250ml, Can-250ml) ( Can-250ml)
SPA
(Bottle500,1000,
1000, 2000 ml,
2000ml)
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Can-150,250ml)
Marketing
LEMU
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1000, 2000 ml, Can-150,250ml)
CLEMON
(Bottle-250,500, 1000, 2000 ml, Can-150,250ml)
MOJ O
L I G H T (upcoming)
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Product line-7 (Dairy Products)
Product line-8 (TEA)
CHE EK Y MO MONKEY
CHEE SE PU PUFF FF
O’POTATO
FI RM FRESH UHT UHT
(500ml)
I C E -T
Col Cold d Te Tea a
(250ml) (upcoming)
FI RM FRESH Pasteurized
I C E -T
G ree reen Te Tea a
(500ml) (250ml) (upcoming)
UPCOMING
FI RM FRESH B utt utte er , G Ghe hee e
Pr oduct Des Descri cri pti on: Raw materials for the Carbonated Soft Drink (CSD), Energy drink and Malt Beverage products are import from following Germany Companies:
WILD GmbH & Co. KG (Eppelheim, Eppelheim, Germany Germany))
Für
Manish GmbH &Co. KG Ltd
This website stores data such as IFF International Flavors & Fragrance Inc. (Hamgurg, Germany) cookies to enable essential site functionality, as well as marketing, personalization, and analytics. You Raw juice (Pulp) and snack products (Potato & Masala) are imported from Germany may change yourmaterials settings atfor anythe time or accept the & default India. settings. Dairy products are completely home made using Bangladeshi raw materials. Most of the
AFBL’s product design, development format, and ingredient are being provided by the Germany Privacy Policy
company “The K r one nesG sGrr oup G mbH & C o”.
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MOJ O MOJO is a carbonated soft drink (CSD) in cola flavor. The packaging of the product is very attractive because of its color combination which is majority red and the art design printed on the bottle and can. AFBL is the first company to introduce full slive bottle packaging and this makes its product more attractive than other competing brands. All the bottle and can are made of high quality plastic and steel respectively and thus they are very handy, portable and easy to dispose. MOJO was launched in 14th April 2006 and since then the product is well accepted by its customer and has profoundly attain a good market share. Very soon MOJO light will be launched in the market to captivate the segment of diet cola drink.
LEMU LEMU is a carbonated soft drink (CSD) in cloudy lemon flavor. The packaging is full slive th
and very attractive. The product was launched in 14 April 2006.
CLEMON CLEMON is a carbonated soft drink (CSD) in clear lemon flavor. The packaging is full slive and very attractive. The product was launched in October 2007. The ingredient of Clemon is provided in APPENDIX-A
SPEE E D SP SPEED is an energy drink that was launched in 14 th April 2006 by AFBL and since from This website stores data such as then, the brandsite could not capture consumer attraction and could avail only a very small cookies to enable essential amount share of energy drink. Then in 2009, Speed was re-launched by changing functionality, as well of as market marketing, personalization, and analytics. You the product’s packaging but keeping the ingredient intact. The re-launch turn out to be very may change your settings at any time or accept the default settings. successful and now the brands withholds the second biggest market share. Privacy Policy
WI LD BRE W
Wild Brew is non-alcoholic malt beverage in which the primary ingredient is barley, which Marketing Personalization has been allowed to sprout ("malt") slightly before it is processed. The product has been Analytics launched by AFBL in November 2008. The category of the product is slow in our Bangladeshi
captivates ou r entire beverage industry. Savemarket andAccept All only 1% of our
FRUTIKA FRUTIKA is a brand for juice product that is available in four different flavors.
FRUTIKA Mango
FRUTIKA Grape
FRUTIKA Red orange FRUTIKA Mixed fruit The products were launched in August 2008, and since the entrance in the market Frutika captivated a large share in the market because of its taste, packaging and unique promotional activation. The ingredient of the all types of Frutika is provided p rovided in APPENDIX-A
SPA SPA is a mineral water that was launched by AFBL in April 2007. The product’s full slive packaging makes it very attractive. The unique marketing communication communication and the products look assist it to make a moderate market share. The Th e ingredient of the all types of Frutika is provided in APPENDIX-A
FARM FRESH The brand FARM FRESH denotes dairy products of UHT milk and Pasteurized milk. The brand entered in the market in September 2007. The ingredients of the products are provided in APPENDIX-A.
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SN SNAC AC K S
(Chi (Chip ps)
UPCOMI NG B ra rand ndss
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P r od oduct uct D De eve velop lopm ment M Mat atrr i x Product development matrix is a tool to analyze in which market with which category of product, a company has penetrated. Produc Pro ductt Deve Developm lopment ent Matri Matri Current Product
ompa Market Penetration C om com combat atii ng wi th tthe he cur currr en Current Market
New Product
ntroduc uce ed ne Product Development I ntrod prod produc uctt i n the cu curr rent rent marke rk et.
p prod roduc uctt i n the curr curr ent mar k Market Development Slant Slantii
Diversification
the curr curr ent prod roduc uctt i nt nto oan New Market
arena/market.
Sens Se nse e of inno innovvati on, by develo lop pi ng ne pr pr oduct uct for for a ne new w mar ket ket.
As per AFBL’s brand portfolio, the assortment of the brands in respect to the the product development matrix is provided below: PDM
Brands MOJ O
Product Development This website stores data such as cookies to enable essential site functionality, as well as marketing, Diversification personalization, and analytics. You may change your settings at any time or accept the default settings.
LEMU CLEMON SPE E D
FRUTIKA SPA
WI LD BRE W F ARM FR E SH (U (UHT HT Mil Milk) k)
Most of the AFBL’s new products have been developed and launched launch ed in the current beverage market, with no market development made. But for the new products Wild Brew & Farm Fresh, new Privacy Policy market of non-alcoholic malt beverage and UHT milk was developed .
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Pricing is one of the crucial aspects of a products destiny to success and failure. There are many different methods of pricing a company can employ. But the main scrutiny is to strategically set the pricing that facilitates the company and the product as well. Various sorts of pricing methods are stated below:
Competition-based pricing
Cost-plus pricing
Creaming or skimming
Limit pricing
Loss leader
Market-oriented pricing
Penetration pricing
Price discrimination
Premium pricing
Predatory pricing
Contribution margin-based pricing
Psychological pricing
Dynamic pricing
Price leadership
Target pricing
Absorption pricing
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In the beverage industry of Bangladesh, people are quite pricing sensitive and thus prices of almost all the competing products are same. AFBL AFB L does its products pricing in three steps. Privacy Policy Marketing Personalization Analytics Save
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Step-1
Cost-Plus Pricing (The core method): Production cost + Bottling cost + Packaging cost + Printing cost = Gross Price It is the first step where AFBL calculates all the production related cost of its product to estimate a Gross price.
Step-2
Gross Price +Mark up profit margin {AFBL} {AFBL} = Absolute price price for the distributors distributors Absolute price for the distributors+Profit Margin {Distributors} = Absolute price for the final consumers Profit margin is being added in this step by b y AFBL. Then distributor ’s ’s margins are denoted to establish the ultimate Maximum Retail Price (MPR).
Step-3
The ultimate price is then analyzed by AFBL using two methods:
Competition-based pricing: Here AFBL identifies whether its product price is similar to the
Market-oriented pricing: Here AFBL justifies whether the price of its product is a price that
This website stores data such as cookies to enablecompetitors essential siteor not. As because the beverage market is very price sensitive, thus price cannot functionality, as well as marketing, be more thanYou competitors and even ev en cannot can not be very less than competitors comp etitors as because it will personalization, and analytics. may change yourimpact settingsthe at any time profitability. So the price has to be close to the competitors’ price. or accept the default settings.
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will be accepted in the market and considered to be a market-oriented price rather than a
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Place: Place means that pattern of distribution channel a company employs to make its products available to the final consumer. AKIJ GROUP OF INDUSTRIES is considered to have one the best distribution channel around the country. This profound distribution channel was specially been made to make their cigarette products available to the consumer in each and every part Bangladesh. AFBL inherited the advantage and was been able use the wide network distribution channel to promote and provide its products in each and every niche across the country. The distribution channel AFBL employs is called Dual Distribution Channel (DDC). In DDC, a company compan y itself distributes the products and also incorporates large number distributes, who are individuals entities, to distributes the products to the final user. The graphical presentation of the ABFL’s ABF L’s DDC is shown below: below:
Factory: AFBL
Ware House
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Independent Distributors
Retailers Privacy Policy Marketing
Final Consumer
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Products from AFBL’s factory are stored in the ware house situated in various parts of Bangladesh. For Dhaka, the ware house is at Tejgaon industrial area. Then the distribution dept at AFBL allocates the products to the distributors around the country. After the products are delivered from the ware house or factory to the distribution point, the distributing companies accordingly distribute them among the retailers to be sold to the final consumer. The distribution companies are individual entities en tities who are considered to be the business partners of AFBL. Apart from this channel, AFBL has its own distributing wing established in some part of Bangladesh to make the products available to its customer. But where there is the establishment of AFBL’s distributing wing, other distribution companies are NOT employed. This is because b ecause two channel in the same distribution point will create channel conflict that will intern effect the products selling and availability. AFBL solely do not want to depend on the distributors thus they have established Dual distribution channel. AFBL has segmented the entire Bangladeshi market ma rket into 25 regions for its distribution purpose: DHAKA-1
DHAKA-2
NORSINDI ZINZIRA
DHAKA-3
GAZIPUR
NARAYANGONJ MYMENSING TANGAIL
CTG-1
CTG-2
COMILLA
CHOWMOHANI KHULNA
FARIDPUR BOGRA
DHAKA-4
CTG-3
RAJSHAHI
SYLET
MOULOBIVABAZAR
KUSTIA
BARISAL
RANGPUR
ZESSORE
For these regions, there are total of 263 approx distributing company who perform the distribution of AFBL’s products. All of the companies are well trained and associated with the AFBL’s products,
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It is one of the most important facet of a company which it has to nourish in a very proper way to Privacy Policy
achieve optimum outcome. AFBL values the importance of promotion, because it believes no matter
Marketing how high-quality, good taste, attractive packaging the product avails, it has to be properly Personalization
communicated to the customer to pursue the final purchase. And to properly communicate the product
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with the customer, AFBL has a well structured Marketing Dept who are capable of developing
Save Accept All projected strategic marketing plans.
The Marketing Dept of AFBL is assorted into four divisions all working interconnected: Brand Dept
Sales Dept
Sales-force Training Dept
Distribution Dept
The entire marketing department is situated in the 2nd floor of MofizChamder, 75 Dilkusha C/A Dhaka. AFBL has broadly categorized its promotional activities in two types:
T r ad ade e pr om omot otii on ((T TP)
All the strategy crafting, developing, implementing and monitoring of trade promotions are being done by the sales department. Trade promotions are targeted for the retainers and the distributors. It usually involves free products, cash incentives and gifts for the retainers and distributors for high volume purchase.
C onsum nsume er Pr omoti on (C ( C P)
All the promotional activities that are targeted for the consumers are developed here. Strategy crafting, developing, implementing and monitoring of consumer promotions are being conducted by the Brand department. The Brand department compiles of well trained and experienced individuals designated as: Director (Brand)
Brand manager
Brand executives
Event officers
This website stores data such as cookies to enable essential site Event executives Brand officers marketing officers Graphic Designers functionality, as well as marketing, personalization, and analytics. You may change settings any time B your usi usine ness ss ca carr dats o of fe eac ach h off offii ce cess iin n the ab abo ove desi sigg nat natii on i s pr pr ovide vided d in A APP PPE E N D I X -A -A or accept the default settings.
Each brand officer is designated with certain brands. And the brand executives are the head of all Privacy Policy
brand officers o fficers and they are a re entitled to the functioning of all the brands of AFBL. Event executives
Marketing
and officers are responsible for conducting various sort of events associating with individual brands
Personalization
of AFBL. They are responsible for sponsoring and developing events and associate it with any
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specific brand of AFBL to create a promotional act ac t for AFBL. The Brand manager is the department
Savehead, to whom Accept All officials are accountable. And the Brand Manager is accountable to the Brand all other
Director for the functioning of the Brand department.
The AD & Creative department of AKIJ GROUP assist AFBL’s brand department for some of its operation regarding promotional promotional strategy implementation. AFBL do not have their own in-house agency. They believe in creativity and so they think that if they hire outside agency to make their ads and promotions then they would get more benefits. According to them, by using an outside agency they can get services from highly skilled expertise in their chosen cho sen field. Currently AFBL is affiliated with two agencies that provides various sort of promotional services, starting from generating innovative promotional ideas and concepts, strategically coordinating them and till execution.
ADCOMM LTD (works for the brands MOJ O, CL E MON, MON , F R UTI K A, SPA SPA,,
F ARM F RE SH & CH I PS p pro rod ducts ) )
GREY, Bangladesh (works for the brands SPE E D, LE MU MU,, SP SPA, A, WI L D B BR R E W ) )
AFBL incorporates yearly bases contract with the two agencies mention above. The contract implies the agencies to work with the specified brands of AFBL and the remuneration is given using a method called:
R eta taii ne nerr shi ship p fee ap approa proach ch: AFBL pays a fixed certain amount of monthly fee to the Ad agencies. The fixed amount is paid even if the agency works every single day of the month and even if not working for a single day. The monthly fee has been set by a negotiation between AFBL and the Ad agencies. This website stores data such as cookies to enable site coordinates its Brand department with the outside Agencies in order to attain AFBLessential strategically functionality, as well asoutcome marketing,regarding the promotional activities, from both the entities. Analysis of the optimum personalization, and analytics. You marketing andatpromotional strategies of AFBL is illustrated in the later part of the project. may change your settings any time or accept the default settings.
Sale Sa less F or ecast cast// Pro Pr omotion iona al B ud udge getting Privacy Policy
Sale Sa less F or ecast cast:: Marketing Personalization
Sales department of AFBL constructs the sales forecast of the product. Two types of forecasting are
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being done by the department:
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N ation-wide FFo or eca cast st : It is the long term forecast usually for one year. The term period is from July to June.
Ar ea-w -wii se F ore reca cast st : It is the short term forecast performed every month. The forecasting is made th
th
within the 25 to 28 of the respective month. Usually revised forecasting is done after every six month mon th but in special cases, for example Eid festival and other national event, it is done quarterly. Key officials associated with the forecasting purpose are Director (Sales), GM, AGMs, Sales Coordinators, Research officers etc. No concrete method is used for the forecasting. Usually based on the market research, market growth, AFBL’s potentiality, and officials’ experience and judgment, the sale forecast is conducted.
P r omotiona tionall bud udget getii ng: The promotional budgeting of AFBL is carried out by the executives of the Brand department. The budgeting period is for one year (JUN-to-JULY). There are various sort of strategies that can be implied to construct budgeting for the promotional activities. Two usual categories are Top-Down budgeting & Activity-Based budget.
Top-Down budgeting: It is an approach, where the company predetermines a fixed amount as a budget for conducting promotional activities. This website stores data such as cookies to enable essential site Acti Act ity ity-B -Ba se sed d bud udge gett: It is an Approach where the company does not construct any predetermined functionality, asi vwell asamarketing, personalization, analytics. You is made based on the promotional activities that will be conducted within the fixedand amount. Budget may change your settings at any time or accept the defaultperiod settings. specific of time.
AFBL uses Activity-Based budget for all the products promotional activities. The one year (Jun to Privacy Policy July) period budget is done based on the activities that will be conducted during the year for individual Marketing brands. Break down and process of budgeting is shown below: Personalization Analytics Save
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(Budget Plan Format) For every product of AFBL, the budget plan format shown above is being made. The format used by AFBL shows month wise activities done for each and every Brand. Further breakdown of the percentage among ATL and BTL is illustrated by below: This websitePromotional stores data such as Budget Allocations for the specific medias cookies to enable essential site functionality, as well as marketing, ATL (Appro (Approx x 60% 60% of of the the prom promoti otion on TV Adve Advert rtis isem ement entss and and Rad Rad News paper/magazines & personalization, and analytics. You may change budget) your settings at any time advertisements - 70% Billboard-30% or accept the default settings.
BTL (Appro (Approx x 40% 40% of of the the prom promoti otion on Alloca Allocated ted as as per requirementrequirement- no fixed fixed percenti percentile le breakdow breakdow budget) Privacy Policy Majority of the promotional budget is being allocated to ATL among which electronic media which Marketing are TV and Radio is allocated 70% and other print media is allocated 30%. Personalization Analytics Save
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For BTL the allocation is 40% among amon g which percentile breakdown for the activities a ctivities like sponsorship, various event organizing, specialized programs etc, is not being specified. The allocation solely depends on the requirement for each event.
The key people associated with the promotional budgeting are the Brand Executives, Event Executives & Brand officers. After the budget is constructed, it is then cross-checked by the Brand Manager (BM). After the approval from BM, the final assessment is being done by the Directors before the budget plans are executed. Quarterly the budget b udget is reviewed for any an y alteration and if any changes are done, immediate actions are taken to keep the promotional budget plan constructive on track. The monitoring and evaluation of the promotional activities is being conducted by the brand department with certain level of help from the sales and the internal research department. They rely on the combine effect from all the promotional activities. Sales department provides the report about sales growth or reduction. And internal research department provides report about the level of awareness and brand equity created by conducted condu cted different situational surveys. Analyzing information from both the departments, brand department evaluates the combine effect and performance of the entire promotional mix took place within a specific time frame.
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3.5.9. SWOT ANALYSIS OF AFBL: Analytics
To analysis Strength, Weakness, Opportunity and Threat of AFBL, I have solely depended on the
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information from company.
Strengt Stre ngth: h:
Weakness:
Quick establishment of brands like
Less experience in the beverage market
MOJO, SPEED,FRUTIKA.
in terms of understanding in timely
Quality of the products.
proper customer need.
Availability of products through mass distribution around the country.
High
quality
machineries
Some improper promotional activities.
Being
and
manufacturing system of AFBL.
new
in
the
market
AFBL
Unique promotional activities.
considers a weakness in the entire
Full Slive-Packaging in terms of color
supply-chain-management.
combination and design.
Potable in terms of 150ml and 250ml bottle and can.
Opportunity:
Threat:
Huge profitability scope in beverage market
of
Bangladesh
because
a
Unethical practice of the competitors, for example tax violation, to reduce the
sustainable growth of 6% prevails in the
price of the product.
market.
There a scope This website stores datais such as for the local companies cookies to enabletoessential sitemaximum market share for attaining functionality, as well as marketing, personalization, and Youflavored CSD drink. the analytics. refreshing may change your settings at any time or accept the default settings.
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Opportunity for AFBL products to be exported in the overseas Asian market.
Marketing Personalization Analytics Save3.5.10. Competitors Accept All Portfolio:
Companies like Coca-Cola and Pepsi to be operated as MNCs like Unilevel rather than the licensing owned by the local Bangladeshi company.
Any new company introducing unique flavored refreshing drinks and having huge financial capabilities.
A competitive environment prevails in the beverage industry of Bangladesh. Many giant local and multinational companies project rivalry in the market and perform rigorous operation to attain maximum market market share. AFBL’s competitor list as per the product category is presented in the following:
Product Category Carbonated Soft Drink (CSD
COLA
AF B L : B Bran rand ds
MOJ O
Competitors’ Brands
Carbonated Soft Drink (CSD CLOUDY CLOU DY LE MO MON N
LEMU
Carbonated Soft Drink (CSD CLEAR LE MO MON N
CLEMON
Energy Drink
SPE E D
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SPA
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Marketing
Personalization Analytics Non-Alc Non -Alcohol oholic ic Malt Malt Bevera Beverag g Save
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WI LD BRE W
Coca-cola Pepsi R C Col Cola a UR O Cola Zam Za mZa Zam m Col Cola a Max Col Cola a Virgi Vi rgin n Co Cola la R C L emon UR O L emon Zom Zo mZo Zom mL emon PR A N L emon 7UP Sprr ite Sp Pran-up F i zz-up Chaser B ubble-up ubble-up Virgin-Clear Tiger B ig B oss Shark Sha rk B la lack ck H or se Bacchus Sting Mum F resh resh Acme Acm e J Jii bon Pran Shant Sha ntii F yne Niagra Duncans
Crown H olstei lstei n 3-Horse
Backer’s Backer’s
Fruit Juice
Dairy products: UHT milk
FRUTIKA
FARM FRESH
F r ooto ooto Pr Pra an Juice J uice Acme Acm e J uice Shezzan J uice She Ot Othe herr s ((F F or ei gn B r and nds) s) Mi lk-V lk-Vita ita Ar ong Mi lk Pran Pra n UH UHT T Afttab UH T Af
3.5.11. BCG Growth Share Matrix:
BCG Growth share matrix helps to identify brands position in the market as per market share. The matrix has four segments each reflecting a position of a brand for the company. et a R
HIGH
STAR ST AR
PR OB OBL L E M CH I L D
LOW
CASH COW
DOG
ht w or G t e kr
HIGH a M
LOW
Relative Market Share
This website stores data such as cookies to enable essential site STAR ST AR : A product in this segment denotes to have high market share when the industry is experiencing functionality, as well as marketing, personalization, analytics. You high and market growth. may change your settings at any time or accept the default settings.
CASH CO COW W : Product in this segment tends to have maximum market share when the industry is
floating in low market growth Privacy Policy Marketing
PROBLE PRO BLE M CHILD : Product in this segment tends to make least market share when there is high
Personalization
market growth in the industry
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D OG : Product in this segment trends to be a burden for the company as there is low market growth
and the product avails limited market share.
Graphical presentation of AFBL’s Brands as per growth share matrix: matrix:
MOJ O
LEMU
R
SPE E D
CLEMON
w
FARMFRESH
HIGH et a th or
FRUTIKA
G te kr
LOW a
CASH COW
SPA SP A
WI LD BRE W
M
HIGH
LOW Relative Market Share
AFBL is operating in the beverage industry for only 3 years and within this time span it has the following three brands in the STAR grid which reflects a great prosperity for the company. MOJO:
(Market share: 27% & Market position: position: 03)
SPEED: (Market share: 36% & Market position: 01)
FRUTIKA:
(Market share: 32% & Market Market position: 02) 02)
It has four brands (Lemu, Clemon, Spa, Farm Fresh) in the Problem Child grid and one (Wild Brew) in the DOG grid, but this is only an assessment of a company aging only 3 years. In future operations, AFBL to strategically shift its brands in Problem Child and Dog to Star or Cash Cow category. This website storestends data such as cookies to enable essential site functionality, as well as marketing, personalization, and analytics. You may change your settings at any time or accept the default settings. Privacy Policy Marketing
3.6. ANALYSIS OF THE MARKETING STRATEGIES OF CLEMON
Personalization Analytics
Marketing strategies and communicational theme of AFBL’s AFBL ’s brands are developed by the combine
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effort of the brand department and the advertising agencies (Adcomm& Grey). Many strategic themes
are proposed by the agencies and the brand department analyzes and polishes them to make it
applicable for implementation. There are several marketing strategies such as Experiential Marketing, One-to-One Marketing, Permission Marketing, Relationship Marketing, and After Marketing
below: etc.Clemon’s marketing strategies of AFBL’s products are analyzed below:
CLEMON CLEMON was launched with an innovative idea. The strategic marketing/communicational theme of CLEMON is “LIVE FRESH— I
Would Like To Be Under The Sea- JaboShantir r Shukher Dese. The projected idea is that when customer consumers the product, they will feel like under the sea in a dream land of joy and happiness. The Brand is also associated with the sport culture in our country. CLEMON exhibits and promotes Bangladesh Cricket by developing a cricket team te am that plays division qualifying cricket games in our country. The Brand plans to develop at least one player to play in our international cricket team and operate as a CLEMON brand ambassador.
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3.7. In-depth Interview:
Marketing
Reference Group for the Soft Drinks: result of in-depth interview with brand officer of Personalization Clemon soft drink: Analytics
Generally the marketers of soft drinks think that the customers of their product are influenced by
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different reference group (SumitChakraborti, 2009). Other than this I found from in depth interview
that different marketers target different customers for their product. Marketers of Clemon Soft Drink disclose that their target customers are the people between 12-35 years old who tend to be fresh all the time. They consider the following parties that influence their consumers:
Family members Peer groups
Culture
Celebrities
Friends
Consumers own personality and status
Coworkers
Other consumers
Relatives etc.
These are the individual factors that can influence the consumers to choose a specific brand to purchase soft drinks. Consumers gather information before purchase a soft drinks from family members, peer group, friends (not formal friends), coworkers, and sometime relatives. So it can be said that these parties exert the informational influence on purchase decision. At the same time consumes try to consider the others expectations and desire they also exert utilitarian influence. This website storesconsumer data such tends as Every to show themselves to others. They want that people look at them in asocial cookies to enable essential site eyes. functionality, as well as marketing, personalization, and analytics. You may change your settings at any time or accept the default settings.
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Findings an Analysis:
4.1. Frequency Analysis: Demographic Analysis:
1. Gender:
T ab able le 1: G ende nder r Frequency
Percent
Valid Percent
Male
130
75.6
75.6
Female
42
24.4
24.4
Total
172
100.0
100.0
This table shows that out of 172 respondents; male are 75.6% &24.4%respondents are female. So it may be said that most of the consumers of soft drinks is male. 2. Occupation:
4% 4% 19%
Student 73%
Service Holder Business Others
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F i g ure ur e 1: Occup Occupa ation o off the C usto ustom mer s
This Figure shows that out of 172 respondents: 73% of the respondents’ are students, 19% of the Privacy Policy respondents’ are service holder, 4% of the respondents’ are businessperson, and 4% of the Marketing respondents are in others profession. So it may conclude that most of the soft drinks consumers are Personalization students. Analytics Save
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3. Education Level:
14% 36.6%
6.4%
SSC
22.1% 20.9%
HSC Hon's Above Hon's Below SSC
F i gur e 2: E duca ucation tion L Le evel vel of the cust custom ome er s This Gr aph aph shows that out of 172 respondents there 36.6% respondents are in the Hon’s level, and 20.9% respondents in the HSC level students. SSC students are 22.1% and above Hon’s respondents are 14%. And 6.4% respondents are in below SSC level. 4. Cross Tabulation: Table 2: Cross Tabulation between Friends’ Evaluation and Education Friends Evaluation * Education Cross tabulation Education Categories SSC HSC Hon's Above Hon's Friends Evaluation Strongly 0 2 5 0 Disagree Disagree 4 5 2 2 This website stores data such as Neutral 8 15 10 13 cookies to enable essential site 26 14 43 6 functionality, as well as marketing, Agree 0 0 3 3 personalization, and analytics. You Strongly may change your settings at any timeAgree or accept theTotal default settings. 38 36 63 24
Total Below SSC 0
7
3 6 2 0
16 52 91 6
11
172
Privacy Policy From the table we can say that respondents in the Hon’s level are more agreed that their friends’ Marketing evaluation can influence their decision. Then SSC level students are also agreed with this statement. Personalization Analytics Save
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5. Income Level:
T ab able le 3: I ncom ncome e L evel vel of C usto ustom mer s Categories
Frequency
Percent
Valid Percent
Nill-2000
76
44.2
44.2
2000-5000
43
25.0
25.0
5000-10000
23
13.4
13.4
10000-20000
14
8.1
8.1
20000-Above
16
9.3
9.3
172
100.0
100.0
Total
This table shows that out of 172 respondents: 44.2% of the respondents’ income level is below 2000, 25.0% of the respondents’ income level is 20002000 -5000, 13.4% of the respondents’ income levels are 5000-10000, and 8.1% respondents’ income level is 1000010000 -20000and only9.3% of the respondents’ income level 20000-above. So it may be said that most of the consumers are in low income level.
6. Age: 2.9% 1.7% 27.3%
10-14 68%
15-24 25-34 35-Above
This website stores data such as cookies to enable essential site functionality, as well as marketing, F i gur gur e 3: A ge o off the cust custom ome er s personalization, and analytics. You may change your settings at any time or accept the default settings. It shows that out of 172 respondents: 68% of the respondents’ age is between 15 -24 years, 27.3% of
the respondents’ age is between 2525-34 years, 2.9 % of the respondents’ age is between 35 to above, Privacy Policy
and only 1.7 % of the respondents’ age is between 10-14 10-14 years.
Marketing Personalization Analytics 7. Rank Order of the factors: Save
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Table Tab le 4: R ank Ord Or der of i nflue nfluencing ncing fac facto torr s N
Mean
Position
Own personality
172
1.7000
1st
Family Members
172
2.6000
2nd
Friends
172
2.9000
3rd
Relatives
172
4.5000
4th
Peer group
172
5.8000
5th
Culture
172
6.1000
6th
Celebrities
172
6.2000
7th
Coworkers
172
7.0000
8th
Other consumers
172
7.5000
9th
Total Respondents * N ot ote e: The most most influe inf luencing ncing fact factor or i s r anked a ass 1 then 2 a and nd 3
172
This table shows that consumers own personality in the most influencing factor is own personality that mean is lowest than others (1.70), followed by, the family members, friends, relatives, peer group, culture, celebrities, coworkers, and other consumers. con sumers. Informational Influence Analysis: 8. Search Information from those who know more about SD:
This website stores data such as cookies to enable essential site functionality, as well as marketing, F i gu gur 4:: Sear ch I nfor nform mat atii on fr f r om those those who know mor e about SD personalization, and analytics. Your e 4 may change your settings at any time This figure shows that out of 172 respondents: 44 % of the respondents are agreed, 26 % of the or accept the default settings.
respondents are neutral, 16 %of the respondents are disagreed, 10 %of the respondents are strongly agreed and only 4 % of the respondents are strongly disagreed that th they ey search information from those Privacy Policy who know more about soft drinks. Marketing Personalization
9. Seek information from those who work in soft drinks (SD) company:
Analytics Save
T ableAll5 5:: Accept
See Seekk i nform nfor mation ffrr om tho those se who w work ork i n soft d drr i nks nks (SD ( SD ) co com mpany
Seek information from those who work in soft drinks (SD) company
Strongly Disagree Disagree Neutral Agree
Frequency 20 27 51 69
Percent 11.6 15.7 29.7 40.1
Valid Percent 11.6 15.7 29.7 40.1
5 172
2.9 100.0
2.9 100.0
Strongly Agree Total
This table shows that out of 172 respondents: 40.1 % of the respondents are agreed, 29.7 % of the respondents are neutral, 15.7 % of the respondents are disagreed, 11.6 % of the respondents are strongly disagreed and only 2.9 % of the respondents are strongly agreed that they seek information from those who work in soft drinks. 10. Collect Information from friends, family members, relatives, coworkers:
12.8%
5.8%
17.4%
Strongly Disagree Disagree
40.7%
23.3%
Neutral Agree Strongly Agree
This website stores data such as F i gu gurr e 5: C olle ollect ct IInfor nform mat atii on ffrr om fr i end nds, s, fa f ami ly m me ember s, rre elat latii ves, ves, cow cowo or kers cookies to enable essential site functionality, as well as marketing, personalization, and analytics. You This shows may change yourfigure settings at anythat timeout of 172 respondents: 40.7 % of the respondents are agreed, 23.3 % of the or accept the default settings.
respondents are neutral, 17.4 %of the respondents are disagreed,12.8 %of the respondents are strongly agreed and only 5.8 % of the respondents are strongly disagreed that they collect information from
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friends, neighbors, relatives or work associates.
Marketing
Personalization Analytics Save
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11. Change mind if I see that retailers use specific brands:
F i gur gur e 6: C hange mi nd i f I se see e tha thatt r eta taii ler ler s use sp spe ecifi ci fi c b brr ands nds This graph shows that out of 172 respondents: 39 % of the respondents are neutral, 33% of the respondents are agreed, 24 % f the respondents are disagreed,3.5 % of the respondents are strongly disagreed that If they see the soft drinks’ brand which is used by b y soft drinks retailers, they may change their mind. 12. My choice of soft drinks is influenced by other consumers’ who consume specific brands. Table 6: My choice of soft drinks is influenced by other consumers’ who consume speci fi ficc
brands. My choice of soft drinks is influenced by other consumers’ who consume specific brands brands
Valid
Strongly Disagree
This website stores data such as Disagree cookies to enable essential site Neutral functionality, as well as marketing, personalization, and analytics. You Agree may change your settings at any time Strongly Agree or accept the default settings.
Total
Frequency
Percent
Valid Percent
12
7.0
7.0
56
32.6
32.6
32
18.6
18.6
47
27.3
27.3
25
14.5
14.5
172
100.0
100.0
Privacy Policy This table shows that out of 172 respondents: 32.6 % of the respondents are disagreed, 27.3 % of o f the Marketing respondents are agreed, 18.6 % of the respondents are neutral,14.5 %of the respondents are strongly Personalization agreed and only 7 % of the respondents are strongly disagreed that their choice of soft drinks is Analytics
influenced by other consumers who consume specific brands.
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13. I valued information the most that my family members provide about soft drinks:
F i gure ur e 7: va valued lued i nf nforma ormati tion on the most tthat hat my my fam famii ly me mem mbe berr s pr prov ovii de a ab bout so soft ft dr drii nks. nk s. This graph shows that out of 172 respondents: 31.4 % of the respondents are disagreed, 29.1 % of the respondents are agreed, 29.7 % of the respondents are neutral, 4.7% of the respondents are strongly agreed and 5.2 % of the respondents responden ts are strongly disagreed that they valued information the most that their family members provide about soft drinks. 14. Which information the consumers collect from others:
T able 7 7:: R ank or der of I nfor nform mation co colle llect ct fr fro om ot othe herr s Type of Information
Mean
Position
Taste Related
1.6154
1st
Brand Related
1.6429
2nd
This websitePrice storesRelated data such as 2.3636 cookies to enable essential site 2.7500 functionality, Hygiene as well asRelated marketing, personalization, and analytics. You Packaging Related 3.0000 may change your settings at any time or accept the * Note: Ndefault ote: Thesettings. most collected information is ranked as 1 then 2 and 3…
3rd 4th 5th
Privacy Policy From the table we can see that consumers collect the taste related information most from others Marketing (1.6154), followed by brand related, price related, hygiene related and poorly packaging related Personalization information. Analytics Save
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Utilitarian Influence Analysis:
15. My friends’ friends’ evaluation and preference will influence my choice: 3.5% 4.1%
9.3% Strongly Disagree Disagree
52.9%
30.2%
Neutral Agree Strongly Agree
F igure 8: My friends’ evaluation and preference will influence my choice. This figure shows that out of 172 respondents: 52.9 % of the respondents are agreed, 30.2 % of the respondents are neutral, 9.3 % of the respondents are disagreed, 3.5 % of the respondents are strongly agreed and only 4.1 % of the respondents are strongly disagreed that their friends’ evaluation and preference will influence their choice. 16. Other people’s people’s recommendation may influence my final decision:
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Fi gure 9: Other people’s recommendation may influence my final decision. decision .
This graph shows that out of 172 respondents: 42.4% of the respondents are neutral, 29.1 % of the
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respondents are agreed, 22.7 % of the respondents are disagreed,4.1 % of the respondents are strongly
Marketing
disagreed and only 1.7 % of the respondents are strongly agreed that other people’s recommendation
Personalization
may influence their final decision.
Analytics Save
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17. The preferences of family members can influence my choice of soft drinks most :
Table 8: T he p prr efer fere ences o off fam famii ly me mem mbe berr s can inf i nfluence luence choice of soft dr i nks nk s most. most. Frequency
Percent
Valid Percent
Strongly Disagree
8
4.7
4.7
Disagree
40
23.3
23.3
Neutral
46
26.7
26.7
Agree
54
31.4
31.4
Strongly Agree
24
14.0
14.0
Total
172
100.0
100.0
This table shows that out of 172 respondents: 31.4 % of the respondents are agreed, 26.9 % of the respondents are neutral, 23.3 %of the respondents are disagreed,14 %of the respondents are strongly agreed and only 4.7 % of the respondents are strongly disagreed that the preferences of family
member s can iinf nfluence luence the theii r choice o off soft d drr i nks nk s m most ost..
18. To consider my classmates’ preference my decision to purchase soft drinks is influence much.
This website stores data such as cookies to enable essential site functionality, as well as marketing, personalization, and analytics. You may change your settings time classmates’ preference decision to purchase soft drinks is influenced much. F ig igure ure 10: at Toany consider or accept the default settings.
This figure shows that out of 172 respondents: 36 % of the respondents are neutral31 % of the Privacy Policy
respondents are disagreed,20 %of the respondents are agreed,9 %of the respondents are strongly
Marketing
agreed and only 4 % of the respondents are strongly disagreedthatto consider classmates’ preference
Personalization
theii r decisi the ci sio on to p pur urcha chase se so soft ft dri nks nks iiss iinfluence nfluenced dm much. uch.
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Value Expressive Influence:
19. I tend to choose choose those brands that will enhance my image in others’ eye: eye:
F ig igure ure 11: Tend to choose those brands that will enhance consumers’ image in others’ eye. This figure shows that out of 172 respondents: 25.6 % of the respondents are neutral, 37.2 % of the respondents are agreed, 15.7 %of the respondents are a re disagreed, 12.2% of the respondents are strongly agreed and only 9.3 % of the respondents are strongly disagreedthat the they y tend to choose those brands that will enhance consumers’ image in others’ eye. e ye. 20. I feel that those who purchase or use the soft drinks of a particular brand possess the characteristics which I would like to have:
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Privacy Policy F i gur gu r e 12: I feel feel that tho those se who purchase or use the soft dr dr i nk nkss of a parti particular cular brand po posse ssess ss the characte characterr i stics
which I wo would uld like li ke to have have. This figure shows that out of 172 respondents: 35 % of the respondents are neutral, 35 % of the
Marketing
Personalization
respondents are agreed, 22 %of the respondents are disagreed, 7 %of the respondents are strongly
Analytics
disagreed and only 1 % of the respondents are strongly agreed that they feel those who purchase or
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use the soft drinks of a particular brand possess the characteristics which they would like to have.
21. I think that the people who purchase the soft drinks of particular brand (e.g., Pepsi,Cocacola, Mojo, Clemon, Fanta, Pran Up etc. ) are sometimes valued by others:
T able able 9: C onsume onsumerr s thi think nk those who consume othe otherr br brand and so som meti eti me mess valued by o others thers.. Sometimes valued by others
Valid
Frequency
Percent
Valid Percent
Cumulative Percent
Strongly Disagree
7
4.1
4.1
4.1
Disagree
26
15.1
15.1
19.2
Neutral
80
46.5
46.5
65.7
Agree
53
30.8
30.8
96.5
Strongly Agree
6
3.5
3.5
100.0
172
100.0
100.0
Total
This table shows that out of 172 respondents: 46.5 % of the respondents are neutral, 30.8 % of the respondents are agreed, 15.1%of the respondents are disagreed,3.5%of the respondents are strongly agreed and 4.1 % of the respondents are strongly disagreed that those who consume other brand are sometimes valued by others. 22. Using the soft drinks of a particular brand helps me to show others who I am, or who I would like to be (such as successful actresses, a female professional, etc.):
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Privacy PolicyF i g ure ur e 13 13::
B r and he helps lps co consume nsumerr s to sho show wo othe therr s who tthey hey a arr e, or who the theyy wo would uld lilikke tto ob be e.
Marketing This table shows that out of 172 respondents: 27.3 % of the respondents are neutral, 26.7 % of the Personalization respondents are agreed, 26.2 %of the respondents are disagreed, 15.7 %of the respondents are strongly Analytics agreed and only 4.1 % of the respondents are strongly disagreed that they search information from
know more Savethose who Accept All about soft drinks. 4.2. Descriptive Statistics:
Table 10: Descriptive Statistics of Informational influencing factors
Factors
N
Mean
Std. Deviation
Std. Error Mean
Search information from those who know more about soft drink.
172 3.4186
.99666
.07599
Seek information who works in soft drink company.
172 3.0698
1.06832
.08146
Collect information from friends, neighbors, relatives.
172 3.3721
1.09274
.08332
If see soft drink used by the retailers change the mind.
172 3.0174
.84793
.06465
Other consumers’ who consume specific brads brads
172 3.0988
1.20748
.09207
The result of the descriptive statistical analysis of informational influence of reference group on consumers decision making presented in table 10 revels that ‘ Parties who know more about soft drinks’ , according to mean score, is the most influencing reference group followed by ‘F ami ly
members, relatives, coworkers, friends’ , ‘Other consumers’ , ‘Those who work in soft drink company’ also have the power to influence. However, to determine whether the mean on the
informational factors are above average (a score of more than 3) the following hypothesis has been tested for each item separately.
N ull hyp hypo othe thesi siss (H ( H 0 ):): Informational factors have no impact on consumers purchase decision making
This website stores data such as of softessential drink (i.e. Ho ≤ 3). cookies to enable site functionality, as well as marketing, personalization, and analytics. You Alterna Alte rnat te hyp hypatotany he hesis sis ( HA ): Informational factors have an impact on consumers purchase decision may change your settings time or accept the default settings.
making of soft drink (i.e. HA>3).
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Table 10.1: Result of Test of Hypothesis for above average factors on consumers’ decision Save
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making of soft drinks.
Factors
t
Sig.
Mean Difference
Conclusion
Search information from those who know more about soft drinks.
5.508
.000 .41860
rejected; is not rejected
Seek information who works in soft drink company.
.856
.393 .06977
is rejected; is not rejected
Collect information from friends, neighbors, relatives.
4.466
.000 .37209
rejected; is not rejected
If see soft drink used by the retailers change the mind.
.270
.788 .01744
is
rejected; is not rejected
Other consumers’ who consume specific brads.
1.074
.285 .09884
is
is
is
rejected; is not rejected
* N ote ote: at 5% sig signi nififi ca cance nce leve level
The t-test t-test result (table 10.1) shows that ‘Search information from those who know more about soft dr inks’; inks’; ‘collecting information from friends, family members’have members’have an impact on purchase decision making of soft drinks. Table 11: Descriptive Statistics of Utilitarian influencing factors: Factors
Friends evaluation This website stores data such as Others people’s evaluation cookies to enable essential siteevaluation functionality, Preference as well as marketing, of family members personalization, and analytics. You may change Classmates’ your settings at any time Preference Preference or accept the default settings.
N
Mean
Std. Deviation
Std. S td. Error Mean
172
3.4244
.86524
.06597
172
3.0174
.86838
.06621
172
3.2674
1.10739
.08444
172
3.0116
1.01445
.07735
Privacy Policy
According to mean score we can say that respondents are influenced by their their ‘friends evaluation’
Marketing the most than ‘family members’ and then ‘classmate’s preference but ‘other consumers have no Personalization
impact on their decision’. decision’.
Analytics
The following hypothesis has been tested for each item separately.
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N ull hyp hypot othe hesi siss ((H H 0 ):): Utilitarian factors have no impact on consumers purchase decision making of soft drink (i.e. Ho ≤ 3).
Alterna Alte rnatte hyp hypothe hesis sis ((H H A ): Utilitarian factors have an impact on consumers purchase decision making of soft drink (i.e. HA>3). Table 2.1: Result of Test of Hypothesis for utilitarian influencing factors on consumers’ decision making of soft drinks. Factors
t
Sig.
Mean Difference
Conclusion
Friends evaluation
6.433
.000
.42442
is
rejected; is not not re reje ject ctee
Others people’s evaluation evaluation
.263
.793
.01744
is
rejected; is not not re reje ject ctee
Preference of family members
3.167
.002
.26744
is
rejected; is not rejecte
Classmates’ Preference Preference
.150
.881
.01163
is
rejected; is not rejecte
* N ote ote: at 5% sig signi nififi ca cance nce leve level
The t-test result (table 11.1) shows that ‘friends evaluation’, ‘preference of family members’ have an impact on purchase decision making of soft drinks. Table 3: Descriptive Statistics of Value Expressive influencing factors: Factors
Enhance Image to others’ eye. eye. Characteristics that customers would This websitelike stores asModel). to data havesuch (Role
cookies to enable essential site functionality, Sometimes as well as marketing, valued by others Brand helps customers to show who personalization, and analytics. You and at who may change they your are settings anythey time would like to be or accept the(Own defaultpersonality). settings.
N
Mean
3.2733 2.9884
Std. Deviation 1.15002 .94892
Std. Error Mean .08769 .07235
172 172 172 172
3.1453 3.2384
.86304 1.12709
.06581 .08594
From the table we can say that all the factors related to the value expressive influence have impact on the purchase decision except 'characteristics of others’. Because all the mean values of the Privacy Policy factors ar e above average that are more than 3 except ‘role model’. The most influencing factors Marketing according to mean score is perception that brand brand ‘enhance image to others’ eyes’ then ‘own Personalization Analytics personality’.
The following hypothesis has been tested for each item separately.
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Null hypothesis (H 0 ):): Value expressive factors have no impact on consumers purchase decision making of soft drink (i.e. Ho ≤ 3).
Alterna Alte rnatte hy hyp pothe hesis sis ( HA): Value expressive factors have an impact on consumers purchase decision making of soft drink (i.e. HA>3). Table 4: Result of Test of Hypothesis for utilitarian influencing factors on consumers’ decision making of soft drinks.
Factors
t
Sig.
Mean Difference
Conclusion
Enhance Image to others’ eye. eye.
3.116
.002
.27326
Characteristics that customers would like to have (Role Model).
-.161
.873
-.01163
Sometimes valued by others
2.209
.029
.14535
is
is
not
Brand helps customers to show who 2.774 they are and who they would like to be (Own personality).
.006
.23837
is rejected is
not
is
rejected; is not rejected is rejected; is not rejected rejected; rejected rejected
rejected
* N ote ote: at 5% sig signi nififi ca cance nce leve level
The t-test result (table 12.1) shows that all the items have an impact on purchase decision making of soft drinks except the ‘Role model’. model’. This website stores data such as cookies to enable essential site functionality, as well as marketing, personalization, and analytics. You may change your settings at any time or accept the default settings.
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5. Major Findings
After the detailed analysis researcher found the following major findings: 1. Consumers perceive that their own personality is the most influencing factor to take a
purchase purch ase decision regarding the soft soft drinks’ brands; brands; 2. Family members, friends, friends, relatives are the the reference groups that have the most influence
on purchase decision making of soft drinks than others; brand can enhance their image to others’ eyes; eyes; 3. Consumers have perception that one brand 4. Consumers think that one brand can help them to show themselves to others;
drinks; nks; 5. Celebrity has less impact on the consumers to choose a specific brand of soft dri 6. As the consumers collect different information from others, they collect the taste related
information the most followed by brand and hygiene h ygiene related information; 7. Consumers collect information from those who know more about soft drinks on the other
hand they do not collect information from those who work in soft drink company; 8. Consumers do not think about their role models while buying a specific soft drink; 9. Most of the consumers of soft drinks are students; 10. By buying a specific soft soft drink consumers tend to show show their personality to others; 11. Most of the customers of soft drink are students in different education level that are in This website stores different data suchage as level who earn in diriment amount on money. cookies to enable essential site functionality, as well as marketing, personalization, and analytics. You may change your settings at any time or accept the default settings.
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6. Conclusion and Recommendations
6.1. Conclusion:
In the highly competitive FMCG industry the consumers play pla y the main role. In marketing consumers are the kings of industry. industry. In this study researcher find out the consumers’ insight and the pattern pressure the reference group exert on the consumers to buy a soft drinks. drinks. In the soft drinks industry it seems that marketers in different soft drink companies take innovative strategy to cope with the dynamic consumers. Different marketing researches are made by the company to gather knowledge about the consumers. And take step(s) to achieve their mission. This study is conducted for the purpose of generating knowledge about reference group influence on purchase decision making of soft drinks. Different factors that play great roles on consumers to choose a soft drink to buy are discovered in this study. Marketer can take necessary steps that I recommended in this study. It is found that not all the factors studied in this study have the same power to influence the consumers. And at the same time different consumers consider different factors in different way. So marketers This website stores data such as need to choose those variables that influence all the consumers in different scale. cookies to enable essential site functionality, as well as marketing, personalization, and analytics. You may change your settings at any time or accept the default settings.
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6.2. Recommendations:
As it is difficult for marketers to take courses of action regarding the customers base on their behavior, marketers need to be aware that not all the customers behave in the same way. Different customers behave in different way even the same actions are taken. The marketers need to take some promotional p romotional strategies such as as – – advertising advertising through different mediathat inform the consumers that their personality is match with the specific brand. As if customers consider the brand as their preferred brand. In marketing strategy marketers need to focus on the influence of others - this study advised- that is marketers should show the target customers that others from which they are influenced also value specific brands. As a result the consumers may fell for the brand. As the consumers collect different information from different groups the marketers need to ensure that the information about product and brand is delivered rightly to those who provide information to the consumers. This may be done through an appropriate communication strategy which may advertise in television, radio, newspaper etc. Marketers also need to focus on that information that the consumers collect from others those are: taste related, brand and hygiene related information. That means in the communication strategy these sectors should include communicating with the consumers.
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References
1. Anderson, E.W., & M.W. Sullivan (1993). “The Antecedents and consequences of propensity to buy for soft soft drinks”, Marketing drinks”, Marketing Science, Science, Vol. 12, No. 2, pp.125-143. 2. Bateson, J .E.G. (1990), “Evaluating the role and place of Marketing in service firms”, Service Management effectiveness, effectiveness, Vol. 13, No.2, pp.324-342. 3. Bearden, W.O. and J.E. Teel (1983), “Reference Group “Reference Group Influence on Product and Brand Purchase Decision”, Journal Decision”, Journal of Consumer research, research, Vol. 20, pp.21-28. 4. Bolton, R.N. and J.H. drew (1991a), “A longitudinal Analysis of the impact of others on customer attitudes”, Journal attitudes”, Journal of Marketing , Vol. 55, pp.1-9. 5. Chaston, I. (1994), "Internal customer management and service gaps within the UK manufacturing sector", International sector", International Journal of Operations and Production, Production, Vol. 14, No. 9, pp. 45-56. 6. Chowdhury, Md. A., I. (2011). Consumer Behavior , p. 153. 7. Chakravarti, Sumit (2009). Marketing Strategy of AFBL. Unpublished Manuscript, Stamford University. 8. Hyman, H.H. (1942) ‘The psychology of status’, Archives of Psychology, Psychology, Vol. 269, This website stores data such pp.94 – 102. 1as 02. cookies to enable essential site functionality, as well marketing, 9. asLeon G. Schiffman and Leslie Lazar Kanuk ‘Consumer Behavior ’, ’, ed.9th p.313to 315. personalization, and analytics. You Lessig, V.P. and Park, C.W. (1978) ‘Promotional perspectives of reference group may change your10. settings at any time or accept the default settings. influence: Privacy Policy Marketing
11. Advertising implications’, Journal implications’, Journal of Advertising , Vol. 7, No. 2, pp.41 – 47. 47. 12. Park and Lessig, Bearden and Etzel, M.A. (1999), "Internal marketing and customer driven wavefronts", Service Industries Journal , Vol. 19, No. 4, pp. 49-67.
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13. Kelman, H.C. (1961) ‘Processes of opinion change’, Public change’, Public Opinions Quarterly, Quarterly, Vol. 25, pp.57 – 78. 78.
Accept All , “An Expwerimental study on Customer effort, Perception and Behavior”, 14. Shaw (2005) (2005),
Journal of Marketing Research, Research, Vol. 2, pp.244-249.
15. Yang, J. & He, X. (2007). Social reference group influence on mobile phone purchasing behavior: a cross-nation comparative study. Journal of Int. J. Mobile Communication, Vol. 5, No. 3, P. 322. 16. http://www.faculty.de.gcsu.edu/~jyang/Publications/Marketing-SAM-06.pdf. 17. http://rgdi.sze.hu/files/Ertekezesek,%20tezisek/Tezisfuzet_Angol.pdf) 18. http://findarticles.com/p/articles/mi_qa5483/is_200501/ai_n21375939/ Jan, 2011
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date:13
Appendix: 1. Raw Table: 1. Age:
Valid
10-14 15-24 25-34 35-Above Total
Frequency
Age Percent
Valid Percent
3 117 47 5 172
1.7 68.0 27.3 2.9 100.0
1.7 68.0 27.3 2.9 100.0
Cumulative Percent 1.7 69.8 97.1 100.0
2. Occupation:
FrequencyOccupation Percent Valid
Student Service Holder Business Others Total
126 32 7 7 172
73.3 18.6 4.1 4.1 100.0
Valid Percent 73.3 18.6 4.1 4.1 100.0
Cumulative Percent 73.3 91.9 95.9 100.0
3. Education Level:
This website stores data such as cookies to enable essential site functionality, as well as marketing, personalization, and analytics. You may change your settings at any time SSC or accept theValid default settings.
HSC Hon's Privacy Policy Above Hon's Below SSC Marketing Total Personalization Analytics Save
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Frequency Education Percent 38 36 63 24 11 172
22.1 20.9 36.6 14.0 6.4 100.0
Valid Percent 22.1 20.9 36.6 14.0 6.4 100.0
Cumulative Percent 22.1 43.0 79.7 93.6 100.0
4. Search Information from those who know more about soft drink:
Search Information from those who know more about soft drink
Valid
Strongly Disagree Disagree Neutral Agree Strongly Agree Total
Frequency
Percent
Valid Percent
6 28 44 76 18 172
3.5 16.3 25.6 44.2 10.5 100.0
3.5 16.3 25.6 44.2 10.5 100.0
Cumulative Percent 3.5 19.8 45.3 89.5 100.0
5. Collect Information from friends, family members, relatives, coworkers:
Valid
Collect Information from friends, family members, relatives, coworkers Frequency Percent Valid Percent Cumulative Percent Strongly Disagree 10 5.8 5.8 5.8 Disagree 30 17.4 17.4 23.3 Neutral 40 23.3 23.3 46.5 Agree 70 40.7 40.7 87.2 Strongly Agree 22 12.8 12.8 100.0 Total 172 100.0 100.0
This website stores data such as cookies to enable essential site functionality, as well as marketing, 6. Change mind if I see that retailers use specific brands: personalization, and analytics. You may change your settings at any time or accept the default settings.
Privacy Policy
Change mind if I see that retailers use specific brands Frequency Percent Valid Percent
Valid Marketing
Strongly Disagree Disagree Personalization Neutral Analytics Agree Total
Save
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6 42 67 57 172
3.5 24.4 39.0 33.1 100.0
3.5 24.4 39.0 33.1 100.0
Cumulative Percent 3.5 27.9 66.9 100.0
7. I valued information the most that my family members provide about soft drinks:
Valued information the most that my family members provide about soft drinks Frequency Percent Valid Percent Cumulative Percent Valid Strongly Disagree 9 5.2 5.2 5.2 Disagree 54 31.4 31.4 36.6 Neutral 51 29.7 29.7 66.3 Agree 50 29.1 29.1 95.3 Strongly Agree 8 4.7 4.7 100.0 Total 172 100.0 100.0 8. My friends’ evaluation and preference will influence my choice:
Friends’ evaluation and preference will influence choice
Valid
Frequency
Percent
Valid Percent
7 16 52 91 6 172
4.1 9.3 30.2 52.9 3.5 100.0
4.1 9.3 30.2 52.9 3.5 100.0
Strongly Disagree Disagree Neutral Agree Strongly Agree Total
Cumulative Percent 4.1 13.4 43.6 96.5 100.0
9. Others people Evaluation: This website stores data such as cookies to enable essential site functionality, as well as marketing, personalization, and analytics. You may change your settings at any time or accept the default settings.
Valid
Strongly Disagree Disagree Privacy Policy Neutral Agree Marketing Strongly Agree Personalization Total Analytics Save
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Others people Evaluation Frequency Percent Valid Percent
7 39 73 50 3 172
4.1 22.7 42.4 29.1 1.7 100.0
4.1 22.7 42.4 29.1 1.7 100.0
Cumulative Percent 4.1 26.7 69.2 98.3 100.0
10. To consider my classmates’ classmates’ preference my decision to purchase soft drinks is influence much:
Classmates Preference
Valid
Strongly Disagree Disagree Neutral Agree Strongly Agree Total
Frequency
Percent
Valid Percent
6 53 62 35 16 172
3.5 30.8 36.0 20.3 9.3 100.0
3.5 30.8 36.0 20.3 9.3 100.0
Cumulative Percent 3.5 34.3 70.3 90.7 100.0
11. I tend to choose those brands that will enhance my image in others’ eye:
Enhance My Image Frequency Percent
Valid
Strongly Disagree Disagree Neutral Agree Strongly Agree Total
16 27 44 64 21 172
9.3 15.7 25.6 37.2 12.2 100.0
Valid Percent 9.3 15.7 25.6 37.2 12.2 100.0
Cumulative Percent 9.3 25.0 50.6 87.8 100.0
This website stores data such as 12. essential Consumers cookies to enable site feel that those who purchase or use the soft drinks of a particular brand functionality, as well as marketing, possess the characteristics which I would like to have: personalization, and analytics. You may change your settings at any time or accept the default settings.
Characteristics that I would like to have Frequency Percent Valid Percent Privacy Policy Valid Strongly Disagree 13 7.6 7.6 Disagree 38 22.1 22.1 Marketing Neutral 60 34.9 34.9 Personalization Agree 60 34.9 34.9 Analytics Strongly Agree 1 .6 .6 Total 172 100.0 100.0 Save
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Cumulative Percent 7.6 29.7 64.5 99.4 100.0
13. I think that the people who purchase the soft drinks of particular brand (e.g., Pepsi,Cocacola, Mojo, Clemon, Fanta, Pran Up etc. ) are sometimes valued by others:
Sometimes valued by others Frequency Percent Valid Percent
Valid
Cumulative Percent
Strongly Disagree
7
4.1
4.1
4.1
Disagree
26
15.1
15.1
19.2
Neutral
80
46.5
46.5
65.7
Agree
53
30.8
30.8
96.5
Strongly Agree
6
3.5
3.5
100.0
172
100.0
100.0
Total
14. Using the soft drinks of a particular brand helps me to show others who I am, or who I would like to be (such as successful actresses, a female professional, etc.):
Particular brand helps me to show others who I am, or who I would like to be Frequency Percent Valid Percent Cumulative Percent Valid Strongly Disagree 7 4.1 4.1 4.1 Disagree 45 26.2 26.2 30.2 This website stores data such as Neutral 47 27.3 27.3 57.6 cookies to enable essential site Agree 46 26.7 26.7 84.3 functionality, as well as marketing, Strongly Agree 27 15.7 15.7 100.0 personalization, and analytics. You Total 172 100.0 100.0 may change your settings at any time or accept the default settings.
Privacy Policy Marketing Personalization Analytics Save
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2. Questionnaire
FOR CUSTOMERS/CONSUMERS
For your kind information, I would like to inform you that this survey is conducted onl only y for educational purposes. That is to know the ‘Reference Group Influence on Purchase Decision Making of Soft Drinks’
NAME OF RESPONDENT: ________________________ 1. GENDER: [1] Male [2] Female 2. OCCUPATION: [1] Student [2] Service [3] Doctor [4] Business [5] Other... 3. EDUCATION: [1] SSC [2] HSC [3] Hon’s [4] Above Hon’s [5] Below SSC SSC 4. INCOME : [1] Nill-2000 [2] 2000-5000 [3] 5000-10000 [4] 10000-20000[5] 20000Above 5. Please ‘tick ’ your age15 age15 - 24 25 - 34 35 & above [1] 10 – 10 – 14
[2] 15-24
[3] 25-34
[4] 35 & above
6. Please rank the the following that influence you to buy soft drinks. This website stores data such as Family Members, cookies to enable essential site functionality, as well as marketing, Peer Groups personalization, and analytics. You Coworkers may change your settings at any time or accept the default settings.
Friends
Relatives
Privacy Policy Marketing
Other Consumers Your own Personality
Personalization Analytics
Culture Celebrities
Save
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I nfor nform mationa tionall i nfl nflue uence nce 7. Which information do you collect from others? Please rank the first 3 as 1, 2, and 3.
Price Related;
Brand Related;
Test Related;
Hygiene Related; Packaging Related.
Others(Please Mention):____________________________________
8. I search information about various soft drinks from those who know more about soft drinks.
[1]Strongly [1]Stro ngly D isa isagr gre ee [2] Di Disa sagr gre ee [3] Ne Neut utral ral [4] Agre Agr ee [5] St Stron rongly gly Agr Ag r ee 9. I seek information from those who work in the soft drinks company. co mpany.
[1]Strongly [1]Stro ngly D isa isagr gre ee [2] Di Disa sagr gre ee [3] Ne Neut utrr al [4] Agr Agre ee [5] St Stron rongly gly Agre Ag ree e 10. I will collect soft drinks information from friends, neighbors, relatives, or work associates.
[1]Strongly [1]Stro ngly D isa isagr gre ee [2] Di Disa sagr gre ee [3] Ne Neut utral ral [4] Agre Agr ee [5] St Stron rongly gly Agr Ag r ee 11. If I see the soft drinks’ brand which which is used by soft drinks retailers, I may ma y change my mind.
[1]Strongly [1]Stro ngly D isa isagr gre ee [2] Di Disa sagr gre ee [3] Ne Neut utral ral [4] Agre Agr ee [5] St Stron rongly gly Agr Ag r ee 12. My choice of soft drinks is influenced by b y other consumers’ who consume specific brads.
[1]Strongly [1]Stro ngly D isa isagr gre ee [2] Di Disa sagr gre ee [3] Ne Neut utrr al [4] Agr Agre ee [5] St Strr ongly Agre Ag ree e
This website stores data such as 13.essential I valuedsite information the most that my family members provide about soft drinks. cookies to enable functionality, as well as marketing, [1]Strongly [1]Stro isagr gre ee [2] Di Disa sagr gre ee [3] Ne Neut utral ral [4] Agre Agr ee [5] St Stron rongly gly Agr Ag r ee personalization, and analytics. Youngly D isa may change your settings at any time or accept the default settings. Utililita Uti tarr i an iinflue nfluence nce Privacy Policy
14. My friends’ evaluation and preference preferenc e will influence my choice.
[1]Strongly [1]Stro ngly D isa isagr gre ee [2] Di Disa sagr gre ee [3] Ne Neut utral ral [4] Agre Agr ee [5] St Stron rongly gly Agr Ag r ee
Marketing
15. Other people’s recommendation may influence my final decision. decision.
Personalization
[1]Strongly [1]Stro ngly D isa isagr gre ee [2] Di Disa sagr gre ee [3] Ne Neut utral ral [4] Agre Agr ee [5] St Stron rongly gly Agr Ag r ee
Analytics
16. The preferences of family members can influence my m y choice of soft drinks most.
Save
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Di Disa sagr gre ee [3] Ne Neut utral ral [4] Agre Agr ee [5] St Stron rongly gly Agr Ag r ee
17. To consider my classmates’ preference my decision to purchase soft drinks is influenced
much.
[1]Strongly [1]Stro ngly D isa isagr gre ee [2] Di Disa sagr gre ee [3] Ne Neut utrr al [4] Agr Agre ee [5] St Stron rongly gly Agre Ag ree e Value-expressive influence 18. I tend to choose those brands that will enhance e nhance my image in others’ eye.
[1]Strongly [1]Stro ngly D isa isagr gre ee [2] Di Disa sagr gre ee [3] Ne Neut utral ral [4] Agre Agr ee [5] St Stron rongly gly Agr Ag r ee
19. I feel that those who purchase or use the th e soft drinks of a particular brand possess the characteristics which I would like to have.
[1]Strongly [1]Stro ngly D isa isagr gre ee [2] Di Disa sagr gre ee [3] Ne Neut utral ral [4] Agre Agr ee [5] St Stron rongly gly Agr Ag r ee 20. I think that the people who purchase the soft drinks of particular brand (e.g., Pepsi,Cocacola, Mojo, Clemon, Fanta, Pran Up etc. ) are sometimes valuedby others.
[1]Strongly [1]Stro ngly D isa isagr gre ee [2] Di Disa sagr gre ee [3] Ne Neut utral ral [4] Agre Agr ee [5] St Stron rongly gly Agr Ag r ee 21. Using the soft drinks of a particular brand helps me to show others who I am, orwho I would like to be (such as successful actresses, a female professional, etc.).
[1]Strongly [1]Stro ngly D isa isagr gre ee [2] Di Disa sagr gre ee [3] Ne Neut utral ral [4] Agre Agr ee [5] St Stron rongly gly Agr Ag r ee
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