A comparative study

On
Preferences of Soft drinks based on
Generations and Genders

Submitted by

Ferdaus Alam (1612263660)

Md. Tahmidul Islam (1621808660)
Gazi Mahmudul Hasan (1621499660)
Wang Hongjiao (1612780060)

A Project Report

Submitted as the Partial Fulfillment for the Course of

Business Statistics

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 Letter of Transmittal

31th July 2016

Dr. Kais Zaman

North South University

Subject: Submission of report on customer perception of soft drinks.

Dear Sir,

We are very grateful to you for the fact that you assigned me such a topic to work-on that has increased our
knowledge and idea about the subject matter. Moreover, we found our study is very interesting because in
this paper we dealt with the Soft drinks and get to know many important issues related to our course. The
course content incorporates most important aspects of business environment thus making clear
understanding of business statistics and implications of theories and models of business statistics in
business.

We are happy that we have been able to submit the report before deadline. Although we are under in
pressure when we did the study, but we always enjoyed working on this topic. It gave us pleasure and
created interest to do further study on topics like this.

Yours sincerely,
Ferdaus Alam (1612263660)

________________

Gazi Mahmudul Hasan (162499660)

_________________

Md. Tahmidul Islam (1621808660)

________________

Wang Hongjiao (1612780060)

________________

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 Acknowledgment

I take this opportunity to express my profound gratitude and deep regards to my guide Dr
Kais Zaman for his exemplary guidance, monitoring and constant encouragement throughout the
course. The blessing, help and guidance given by him time to time shall carry us a long way in the
journey of life on which I am about to embark.

A special thanks to all of our MBA colleagues for their guidance in writing the term paper and
sharing their thoughts throughout the research study writing. We are grateful to have a group of
facilitative colleagues to help us in the data collections and we are indebted to these people who
supported us all throughout the journey.

Our deepest gratitude is to be extended to our next door neighbors, friend, classmates who have
given us their valuable time to make the questionnaire survey successful.

Lastly, I thank almighty, my parents, brother, sisters and friends for their constant encouragement
without which this assignment would not be possible. We again would like to express our genuine
compliments to our course instructor Dr. Kais Zaman for giving us such a great lecture which help
us to make the survey successful and to get an opportunity of writing a report.

Sincerely,
Ferdaus Alam
Md. Tahmidul Islam
Gazi Mahmudul Hasan
Wang Hongjiao

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Executive Summary:
The purpose of this report was to examine the customer preference about soft-drinks in our
country. The main purpose of the project is to find out the best brand of this country and know
why consumer is choosing the brand. It also helps to find out whether consumer is price sensitive
or quality searcher. The information collected was mostly from questionnaire based survey
research where we go door to door to know the answer of the questions.

In today's highly competitive markets where competitors offer products that are largely
homogenous, the effectiveness of the salesperson during customer interactions is critical to
success. In this report I have tried to find out some aspects on soft drinks.

In this analysis we find that consumers prefer “Coca Cola” than other brands. Coca-Cola
is the world’s largest manufacturer, distributor and marketer of non-alcoholic beverages carry
over 3500 different products. Coke for the last 5 years (from February 2007 to February 2012) has
held a 45.84% of the nonalcoholic beverage market size. New Factors influencing consumer
products produced almost daily consumption weather Consumer taste Demographics Lifestyles.
We believe that The Coca Cola Company is moderately sensitive to the market based on the
competitive analysis of market positions.

PepsiCo, Inc. is among the most successful consumer products companies in the world.
Pepsi-Cola Company, the world's second largest beverage company; Frito-Lay Company, the
world's largest manufacturer and distributor of snack chips and Tropicana Products, Inc.,
the world's largest marketer and producer of branded juices. PepsiCo’s success is the result
of superior products, high standards of performance, distinctive competitive strategies and the high
integrity of their people.

The soft drinks industry all products are of same price but there are some companies which
cannot provide its consumers with better price but it is in a great position in reference with its
fragrances. We can tell about Miranda. It provides a unique fragrance different from competitors.
Marketers often use price/ quality characteristics to position their brands. One way they do it is
with ads that reflect the image of a high-quality brand where cost, is considered secondary to the
quality benefits derived from using the brand. Another way to use price/ quality characteristics for
positioning is to focus on the quality or value offered by the brand at a very competitive price.

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Although price is an important consideration, the product quality must be comparable to, or even
better than, competing brands for the positioning strategy to be effective. Mirinda is a brand of soft
drink originally created in Spain, with global distribution. The word Mirinda means "admirable"
or "wonderful. It is available in fruit varieties including orange, grapefruit, apple, strawberry,
raspberry, pineapple, pomegranate, banana,. In Bangladesh there are only orange flavor. Mirinda's
primary formulation is as an artificially flavored beverage;

7 Up is a brand of lemon-lime flavored, non-caffeinated soft drink.7 Up logo used by PepsiCo in

international markets. The first name of seven up was –“7 Up Litigated Lemon-Lime”. Then after
change it is now 7 Up.

7 Up has their own Mission. They are as follows:

• Building and enhancing our leading brands

• Pursuing profitable channels, packages and categories

• Leveraging our integrated business models

• Strengthening our route to market

• Improving operating efficiency

In Bangladesh 7 Up target all aged customer not any specific one. 7UP is available in regular and
light versions, both drawing on the idea of clear refreshment lemon lime bite and the sharp-smooth
edge of citrus.7UP has successfully positioned itself as incredible choice on both the global and
Bangladeshi market today. The 7UP logo is ranked as one of the most familiar in the world. Many
people like 7 Up because it has no color and it has also a fizzy taste.

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In survey we analyze the data and get different report and get some frequency table and pie chart.
We make questionnaire to ask different question to three generation of people to make our survey
originally.

The statistical data analysis was done mainly thorough descriptive statistics, using Chi-Square
method. The Ms Excel software was used to execute the analysis process.
we made different type of question as like which is preferable brand, why he/she is using, what is
the price, is it reasonable, why they always use it, and in which time they prefer to drink. We also
made some statement to see the ratings of agree or disagree of the statement.

Every business has their own goal but the common thing is that they establish their business for
profit. Every company wants to maximize their profit. They want to hold their position by applying
different approach. Every company is maintaining a strong bonding with our culture by the modern
way at the modern age.

With different flavor, different sizes, international standard and high quality packaging, many soft
drinks industries have been highly successful in their fields. Its distribution process is highly
efficient.

There has some recommendation for soft drinks. They are given in following:
Now not only urban people demand soft drinks most besides urban people rural people also
demand soft drinks, so the industries need to expand their target customer/ target market .They
should require more skill. They should use modern and new technology. They should use smart
communication channel.

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Contents
Background ................................................................................................................................................... 7
Data sources: ................................................................................................................................................. 9
Variable:........................................................................................................................................................ 9
Objective of This Project: ............................................................................................................................. 9
Research Methodology: .............................................................................................................................. 10
Findings and analysis: ................................................................................................................................. 11
Ratings of statements: ................................................................................................................................. 17
Hypothesis test for Generation vs Brand .................................................................................................... 20
Hypothesis test for Gender vs Brands ......................................................................................................... 21
Conclusion .................................................................................................................................................. 23
Recommendation ........................................................................................................................................ 24
Appended Part............................................................................................................................................. 24
Questionnaire: ............................................................................................................................................. 25

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Background

History of Pepsi in Bangladesh

Pepsi is a carbonated soft drink that is produced and manufactured by PepsiCo. It was renamed
as Pepsi-Cola on August 28, 1898, then to Pepsi in 1961. Transcom Beverage Limited is the sole distributor
of PepsiCo in Bangladesh. They are the owners and operators of all the processing and bottling plants of
Pepsi, 7UP, Mirinda, Mountain Dew, Pepsi Diet, Slice and 7UP Light. They are dedicated to provide the
everyday beverage demand of the people of Bangladesh.

History of Coca Cola

Coke is it -- it being the #1 nonalcoholic beverage company, as well as one of the world's most
recognizable brands. The Coca-Cola Company is home to 16 billion dollar brands, including four of the top
five soft drinks: Coca-Cola, Diet Coke, Fanta, and Sprite. With the world's largest beverage distribution
system, The Coca-Cola Company reaches thirsty consumers in more than 200 countries. Currently, Abdul
Monem and Pran Group bottle Coca-Cola's drinks in the country, Bangladesh News said. The facility is
expected to produce around 222m bottles annually, worth BDT9bn (US$109.8m) per year. Coca-Cola
entered Bangladesh in 1965 through an agreement with Tabani Beverage.

History of Mirinda

Mirinda is a brand of soft drink originally created in Spain, with global distribution. The word Mirinda
means "admirable" or "wonderful. It is available in fruit varieties including orange,
grapefruit, apple, strawberry, raspberry, pineapple, pomegranate, banana,. In Bangladesh there are only
orange flavour. Mirinda's primary formulation is as an artificially flavoured beverage; however, it has been
produced in the past with a percentage of fruit juice, usually due to local tax benefits tied to non-artificial
juice ingredients. In Bangladesh it is distributed by Transcom beverage limited.

History of Seven Up

7 Up is a brand of lemon-lime flavored, non-caffeinated soft drink.7 Up logo used by PepsiCo in

international markets. The first name of seven up was –“7 Up Lithiated Lemon-Lime”. Then after change
it is now 7 Up. 7 Up was created by Charles LeiperGrigg. In Bangladesh the distributor of 7 Up is Transcom

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beverage Ltd. 7UP is the most celebrated and important brand in the PepsiCo 7UP with Natural Lemon
flavor, has replaced that lemonade with a soda fizz sound, charming nose-tingling carbonated bubbles, a
soul-quenching drink followed by the ahhh! of relief.

Figure 1: Different soft drinks

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Data sources:
We collected the data from primary source. We surveyed 74 people to make our report more
effective and to get more effective output on that sample.

Variable:
Independent variable is 3 generation people. Soft drinks are dependent on their preferences.

Objective of This Project:

 To find out the level of impact and relationship between brand and soft drink’s selling
price.

 To find out the level of impact and relationship between color and soft drink’s selling
price.

 To find out the level of impact and relationship between type of packaging and soft
drink’s selling price.

 To find out the level of impact and relationship between customer’s age and soft drink’s
selling price.

 To find out the level of impact and relationship between target customer financial status
and soft drink’s selling price.

 Testing usefulness of the model

 Testing correlation co efficient

 To get a practical exposure of statistical analysis

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Research Methodology:

This research is conducted for getting the customer perception about soft drinks. We determine the
sample size considering individual in different class and different age were taken into account
because all they come under the segment of potential customer and sample size is 71. We used
random sampling method. We have used statistical instrument which is making contact with the
customer through personally and studying the response. We collected our primary data directly
from filling the questionnaire and we took our secondary data from various magazines, newspaper
and other prominent source of information collected from different websites and search engines.
The questionnaire fills up, related to usages of particular branded drinks. We analyze the data with
the help of statistical software, Excel. The collected data was first summarized and presented
graphically. Then we tested some hypothesis about the relation between the variables. At last, we
concluded our findings.

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Findings and analysis:
We did our survey online with the help of google docs questionnaire. The response or sample size
is 74 but all questions were not responded by 74 people. Some people avoid some question. We
mention in every question that how much response we get from each.

 In our 74 response we found that there was 23 Female and 51 Male.

 In our second question, we divide the people in three generation. We want to know which
generation people are consuming the soft drinks more. So we found that 27 people are in
age of 16-23, 42 are in age of 24-34 and only 5 people are in age of 35-50.

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 Which of the following Soft drinks would you prefer to buy?(71 responses)
So among 71 response we can see thirty (30) people prefer Coca-Cola, fifteen (15) prefer
7-UP, Ten (10) prefer Miranda, five (5) prefer Pepsi and eleven (11) prefer other soft
drinks. In pie chart we use the percentage of the responses.

 Which of the following matter influence you to buy that soft drinks?(74 responses)
Here, we can see within 74 responses there are 51 people are consuming soft-drinks for the
matter of taste, 11 people for brand, 4 people for color, 2 for availability, and only 1 vote
for recommendation, design of bottle, price and other reason.

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  Where is the most common place that you purchase soft drinks?(74 responses)
We can see 74 people respond this question. 30 people are saying they purchase it from convenient store and 28 people
are saying that they purchase it from grocery shop, and other 13 from restaurants, 1 vote for hawkers, and 2 respond
that they purchase from other option.

 How likely is it that you recommend soft drinks for refreshment to your friend or
colleague?(73 responses)
We can see 73 people respond this question. 33 or maximum people are saying they likely recommend their
friend or colleague, 17 people are saying that they unlikely recommend and 14 most unlikely and other 9
most likely.

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 How willing are you to try different soft drinks?(73 responses)
Maximum vote prove that people moderately willing to switch of their brands.

 What is the most effective advertising that makes you want to drink a soft drink?(71
responses)
From 71 response, 39 vote for commercials, 16 for promotional offers, 10 for billboard, 4
for web advertisement, and 2 vote for others.

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 How health conscious are you?(73 responses)
Responded people are consuming soft-drinks and we want to know that how much health
conscious they are. Here, 32 people said that they are somewhat conscious about the health,
16 votes for very, 13 votes for not at all, and other 12 votes for extremely conscious.

 Why do you drink soft-drinks?(70 responses)

We want to find the reason that why people consume or drink soft-drinks. From many
option people shared their opinion. Maximum or 36 people voted for different taste. They
think it is different and for this reason they are drinking it. 17 people voted that they are
consuming it for the matter of alternative of water. 12 people said they are consuming
because it is available in everywhere, only 1 person said he/she drinks it only for show-off,
and other 4 have other reasons.

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 Who influence you to buy soft-drinks? (71 responses)
We try to see that people are buying soft-drinks but who influence them to purchase it.
From 71 response, 53 or biggest portion people agree that they are influenced by
himself/herself. Only 11 vote for friends, 3 vote for family, 1 for celebrities, and other 3
vote for others.

 In which time do you prefer to have a soft-drinks?(71 responses)

In which time people prefer to drink the soft-drinks, we ask this question because we want
to know most demanded time of soft-drinks. From 71 response, 24 votes for “when you
take fast-food”, 16 votes for both “when you feel thirsty” and “when you hang out with
your friends”, 7 votes for “on travel”, 6 votes for “after your lunch time”, and 2 votes for
“other”.

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Ratings of statements:
We make some statement and ask people to rate the statement. The ratings of statements are given below:

S.1. Kindly rate your overall satisfaction with your preferred brand. (73
responses)
From 73 response, 21 votes are for both Moderate and satisfaction, and 10 and 5 votes for dissatisfaction
and highly dissatisfaction.

Highly Satisfaction Highly Dissatisfaction

[Link] find your preferred Brand at a convenient location. (72 responses)

30 or 41.7% votes that they strongly agree with the statement. Only 3 or 4.2%
votes strongly disagree with statement.

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Strongly Agree Strongly Disagree

[Link] will never switch to another Brand (71 responses)

Strongly Agree Strongly Disagree

[Link] would recommend the product/service to your friend. (71 responses)

21 people agree and 20 moderately agree with the statement. 12 people strongly
agree but other 12 people strongly disagree too.

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Strongly Agree Strongly Disagree

S.5. There is a room for improvement of your preferred product / service. (71
responses)

Strongly Agree Strongly Disagree

In this statement, we can see 22 or maximum agree, 21 moderate, 17 strongly agree, 8 disagree,
and 3 are strongly disagree.

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Hypothesis test for Generation vs Brand
Step 1: H0: Customer age and soft drinks brand are not related.

H1: Customer age and soft drinks brand are related.

Step 2: The level of significance is set at .01.

Step 3: The test statistic is the chi-square distribution.

Step 4: The degrees of freedom equal (r-1)(c-1) or 6. The critical χ2 at 6 d.f. is 16.812. If compared
χ2>16.812, or if p < .01 reject the null hypothesis and accept the alternate hypothesis.

Step 5: A data table and the following contingency table are constructed.

OBSERVED FREQUENCIES(f0)

BRAND/ 1st generation 2nd generation 3rd generation Total

GENERATION (Age 16-23) (age 24-34) (Age 35+)

COCA COLA 12 17 1 30

PEPSI 1 3 1 5

MIRINDA 5 4 0 9

OTHER 9 15 3 27

TOTAL 27 39 5 71

EXPECTED FREQUENCIES(fe)

BRAND/ 1st generation 2nd generation 3rd generation

GENERATION (Age 16-23) (age 24-34) (Age 35+)

COCA COLA 11.409 16.479 2.113

PEPSI 1.901 2.747 .352

MIRINDA 3.423 4.944 .634

OTHER 10.268 14.831 1.901

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 χ2: (f0-fe)2/fe

BRAND/ 1st generation 2nd generation 3rd generation Total

GENERATION (Age 16-23) (age 24-34) (Age 35+)

COCA COLA .031 .017 .586 .634

PEPSI .427 .023 1.193 1.643

MIRINDA .727 .180 .634 1.541

OTHER .157 .002 .635 .794

TOTAL
4.612

Since the value of calculated χ2 is 4.612 and it is less than critical value 16.812, we cannot reject the null
hypothesis H0. So, we can conclude that customer age and soft drinks brands are not related.

Hypothesis test for Gender vs Brands

Step 1: H0: Customer gender and soft drinks brand are not related.

H1: Customer gender and soft drinks brand are related.

Step 2: The level of significance is set at .01.

Step 3: The test statistic is the chi-square distribution.

Step 4: The degrees of freedom equal (r-1)(c-1) or 3. The critical χ2 at 3 d.f. is 11.345. If compared
χ2>11.345, or if p < .01 reject the null hypothesis and accept the alternate hypothesis.

Step 5: A data table and the following contingency table are constructed.

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 OBSERVED FREQUENCIES(f0)

GENDER/ Coca cola Pepsi Mirinda Other Total

BRAND

MALE 23 1 5 19 48

FEMALE 6 4 5 8 23

TOTAL 29 5 10 27 71

EXPECTED FREQUENCIES(fe)

GENDER/ Coca cola Pepsi Mirinda Other

BRAND

MALE 19.606 3.380 6.761 18.254

FEMALE 9.394 1.62 3.239 8.747

χ2: (f0-fe)2/fe

GENDER/ Coca cola Pepsi Mirinda Other Total

BRAND

MALE .588 1.676 .459 .031 2.75

FEMALE 1.226 3.5 .957 .064 5.747

TOTAL 8.501

Since the value of calculated χ2 is 8.501 and it is less than critical value 11.345, we cannot reject the null
hypothesis H0. So, we can conclude that customer gender and soft drinks brands are not related.

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Conclusion

People prefer soft-drinks for the taste, we got maximum vote on that, and they also prefer
it after taking fast-food and maximum people said they buy it and they are influenced by
themselves not by friend, family or others. Every business has their own goal but the common
thing is that they establish their business for profit. Every company wants to maximize their profit.
They want to hold their position by applying different approach. Every company is maintaining a
strong bonding with our culture by the modern way at the modern age. The soft drinks industry in
Bangladesh consists of different products. The demand for soft drinks is very much vulnerable in
terms of pricing. All companies are trying to give their product at a price which is affordable to
most of the people in the country. Both teenager and aged people are using soft drinks by their
own choice. Besides, those organizations contribute different social work and encourage people
for buying local products. If Coca Cola increases their advertisement more and maintain their
services well then it will be one of the best industry in our country. With different flavor, different
sizes, international standard and high quality packaging, many soft drinks industries have been
highly successful in their fields. Its distribution process is highly efficient.
After this survey and different test analysis we can conclude that People of 2nd generation
consumes more soft drinks, Among all of the soft drink brands, Coca Cola is most popular among
three generation of consumers, There is no relation between Gender and Brand preference, so age
is not a significant factor of Soft drink brand preference.

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Recommendation
 Now not only urban people demand soft drinks most besides urban people rural people also
demand soft drinks, so the industries need to expand their target customer/ target market .
 They should require more skill.
 They should use modern and new technology.
 They should use smart communication channel.
 They should develop their side ingredients and also reset their price.
 If they consider their pricing strategy for lower class people then their sales will be
increased more.
 They should also bring new flavor for customer.
 Lastly, as children are another segment of customer so these industries can make some
products on concern of the children.

Appended Part
Bibliography/ Reference
1. Websites –
 [Link]
 [Link]/wiki/Coca-Cola
 [Link]/wiki/Pepsi
 [Link]
 Statistical techniques in Business and Economics (Lind/Marchal/Wathen)
 Questionnaire by Google Doc, Questionnaire link:
[Link]
eLeldy097_o/edit#response=ACYDBNiDxYmARslNTUpd2IxtvEkfysjvsGD
k9RoFFuSu0xnQhAxfAv8s2EO10fg

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Questionnaire:
Survey of preferences of Soft Drinks
We need the information for making report of Business Statistics course
Your Name
_________________
1. What is your gender?
Male
Female
2. What is Your Occupation?
Business
Student
Service holder
Unemployed
Other :

3. Mention your age from bellow

16-23
24-34
35-50
Other :

4. Which of the following Soft drinks would you prefer to buy?

Coca-cola
7up
miranda
Pepsi
Other :

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 5. When you chose a soft drinks, which of the following matter influence you to
buy that soft drinks?
Price
Taste
Color
Brand
Recommendation
Design or level of the bottle
Availability
Other :

6. Where is the most common place that you purchase soft drinks?
Convenient Store
Restaurents
Grocery Stores
Wholesales Warehouse
From Hawkers on travel
Other :

7. How often do you consume a soft drink?

Daily
Weekly
Monthly
Occasionally
Yearly
8. How likely is it that you recommend soft drinks for refreshment to your friend
or colleague?
Most Unlikely
Unlikely
Likely
Most likely

9. How willing are you to try different soft drinks?

Extremely Willing
Moderately Willing
Not willing to try

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 10. What is the most effective advertising that makes you want to drink a soft
drink?
Commercials
Web advertisement
Billboard
Promotional Offers
Other :

11. How health conscious are you?

Extremly
Very
Somewhat
Not at all
12. In which time do you prefer the soft-drinks?
Summer
Winter
Fall
Spring
13. Why do you drink soft-drinks?
Alternative of Water
Availabilty
Different Taste
Luxurious
Show-off
Other :

14. Who influence you to buy a soft-drinks?

Self
Family
Friends
Celebraties
Neighbours
Other :

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 15. In which time do you prefer to have a soft-drinks?
When you take fast food
When you feel thirsty
when you hang out with your friend
After your lunch time
On travel
Other :

16. Kindly rate your overall satisfaction with your preferred brand.
Highly Satisfaction
1
2
3
4
5
Highly Dissatisfaction
17. You would recommend the product/service to your friend.
Strongly Agree
1
2
3
4
5
Strongly Disagree

18. You find your preferred Brand at a convenient location.

Strongly Agree
1
2
3
4
5
Strongly Disagree

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You will never switch to another Brand
Strongly Agree
1
2
3
4
5
Strongly Disagree
19. There is a room for improvement of your preferred product / service
Strongly Agree
1
2
3
4
5
Strongly Disagree
20. What kind of improvement you would recommend of your preference brand?
____________________________________________________________________________
________________________________________________________________________

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