Soft Drink Industry
Introduction
This assignment relates to USB University, which is a large university. The purpose of this assignment is to create the understanding of the soft drink market in the University among the students. From the whole industry, one particular product 375ml cane has been selected as the sample product. The primary or personal data has been collected by the way of the questionnaire. These questionnaire is to be filled with the students and a particular class of the student is being selected for the same. This class has being selected because it is not possible for analysis the reviews of the whole university’s students. After the selection of the technique and preparing a questionnaire, analysis research has been divided into two segments, which are international and local students.
Data analysis
According to Pierce & Shoup (2013), data analysis is basically to know about the facts and the figures of the present situation in any organization. Data analysis techniques are of two types primary and the secondary, in this study primary data analysis techniques has been used in order to create the understanding of sofdrink among the students. Primary data are more reliable because, it has been collected by the personal observation, not by the secondary or unreliable sources. Primary source in this study is a questionnaire and these questionnaires are prepared by the group of 5 people or students. This part is having three following sections:
Section-A
The Proportion of the students- in this study questionnaire has been filled up by the student of the last semester and the ratio between local and the international student is 5:2. This ration indicates the 50 students are local and remaining 20 are international. The data have been analyzed on 70 random students and on the basis their behavior towards the soft drink consumption.
The Relationship between the price and average quantity consumed
According to Feldstein (2012), prices are eventually the amount paid for buying any commodity. Prices affect the behavior of both the consumers and sellers.
Average quantity consumed is basically the average cans consumed by the individual or average stuff consumed by the students. This has already been defined as the average consumption per student.
According to De Jonghe et.al. (2012), demand is basically the quantity demanded for any commodity at a particular point of time and at a particular price. Demand is affected by the prices as the price increases the demand tends to down and vice a versa, because of many reasons, e.g. substitution effects and normal goods, etc. so it has been clear that the demand increase with the fall in prices and having a negative relationship between the both.
As a result of the change in prices, demand of an individual change and impacts the average quantity consumed. So the prices and the average quantity consumed are interrelated with each other. As the price increases consumer purchases less of it and vice a versa. E.g. prices for Pepsi increase and demand for pepsi declines and for coke increases.
Most popular and the least popular drink
According to Sanchez et.al. (2013), students prefer the cans of Pepsi instead of coke and other brands. Pepsi is quite strong in taste which is preferred by the youth or students. Pepsi is more popular among the international students because Pepsi is a more popular international brand. Limca is the least popular drink among the students between both the classes of the students. Every student has different perception regarding their choice, taste and preferences, etc. It has been concluded from the questionnaire that Coke and Pepsi both are the priorities of the international and the local students.
Loyalty towards any brand among the students
According to Snipes & Benotsch (2013), Loyalty towards the particular brand is there among the students, but this perception differs from student to student. International clients are having, the more loyalty toward their brand instead of locals, But this data also have varieties. Some students get attracted towards the discounted substitution effect when they get a huge discount on any certain product. Some are having their loyalty till the discount is not so huge, so every kind of students is available in the university. Example- if the prices of Pepsi increase and prices of coke decrease, then the customers will buy more of the coke and shift their brand.
Section B
Demand difference between local and international students
According to Basu et.al. (2013), local and international students are having different tastes and the preferences. International students are used to with their particular taste or brand and local ones are of them. Local ones are getting their taste in their country so they are more demanding for the products of their country instead of international. International clients are having their brand loyalty so usually they demand less of local products.
Most and least popular drinks among local students, how does this compare with the preferences of the international student?
According to Amangala (2013), local students are used to their Coke cans, which are in individual packs; these cans are popular among them because these are quite affordable for the students. Local students are not used to consume the expensive and international ones. On the contrary, the international students are quite conscious regarding what they drink and the tastes of their country, so they prefer the international brands and tastes. They are also worried regarding the diet and more conscious about the calories, etc. so they are having the quite different perception regarding but some exceptions are also there in this study. International students are not attracted by the prices, they just want to consume their product, and they are quite loyal towards their brands.
Are local students more loyal to their brand than international students?
No, local students are not that much loyal towards the brands because they are used to with all the brands available in their country so they just got attracted with the huge discounts with some exceptions. International students are more loyal usually because they are hardly getting their tastes in all the local drinks. So they prefer only their drinks and they hardly get attracted towards the other brands. According to the questionnaire every type of students is there with different characteristics.
Section-c
Students choose the Pepsi as their common brand because Pepsi is quite trustable and the preferred brand. Pepsi was the oldest and the trustable brand with the good market image. The market image and affordable prices are two most attractive factors for the students to stuck with Pepsi, as their first choice.
Summary
From this study it has been concluded that the every student is having their own taste and preferences. Some students are having their brand loyalty, but some are not and some are having up to a limited extent. International and local students are having a different perception towards their preferences and the brand loyalty for a product. Demand for the product also differs with the change in prices. Average demand and prices of the products are interrelated changes with the change in the prices and the discounts. International and local students are having different tastes and different popular drinks among them.
References
Amangala, T. (2013). The Effect of Demographic Characteristics on Organisational Commitment: a Study of Salespersons in the Soft Drink Industry in Nigeria.
Basu, S., McKee, M., Galea, G., & Stuckler, D. (2013). Relationship of soft drink consumption to global overweight, obesity, and diabetes: a cross-national analysis of 75 countries. American journal of public health, 103(11), 2071-2077.
De Jonghe, C., Hobbs, B. F., & Belmans, R. (2012). Optimal generation mix with short-term demand response and wind penetration. IEEE Transactions on Power Systems, 27(2), 830-839.
Feldstein, P. J. (2012). Health care economics. Cengage Learning.
Jensen, J. D., & Smed, S. (2013). The Danish tax on saturated fat–short run effects on consumption, substitution patterns and consumer prices of fats. Food Policy, 42, 18-31.
Pierce, G., & Shoup, D. (2013). Getting the prices right: an evaluation of pricing parking by demand in San Francisco. Journal of the American Planning Association, 79(1), 67-81.
Sanchez, S. E., Martinez, C., Oriol, R. A., Yanez, D., Castañeda, B., Sanchez, E., ... & Williams, M. A. (2013). Sleep quality, sleep patterns and consumption of energy drinks and other caffeinated beverages among Peruvian college students. Health, 5(8B), 26.
Snipes, D. J., & Benotsch, E. G. (2013). High-risk cocktails and high-risk sex: examining the relation between alcohol mixed with energy drink consumption, sexual behavior, and drug use in college students. Addictive behaviors, 38(1), 1418-1423.