Download Factors affecting Coca-Cola*s consumer satisfaction

Factors affecting
Coca-Cola’s
consumer
satisfaction in UAE
BY ANSH & HUMAID
Introduction
Marketing, management decision
and marketing problem
components

Marketing research problem: To determine the factors affecting the
consumer satisfaction levels of Coca-Cola in UAE.

Management decision problem: What should be done to increase
the relative market share of Coca-Cola in UAE?

Components of the marketing research problem:

What are the factors/attributes leading to high consumer
satisfactions levels in UAE?

What is the perception of Coca-Cola beverages in UAE as
compared to Pepsi-Cola in UAE?

What are the general trends in the soft drink industry in UAE in the
last few years?
SWOT Analysis
Strengths
Established large customer base
Positive brand image
Dominant market presence built on
large variety of products
Strong bottling partnership
Weaknesses
Product quality issues and frequent
recalls
Opportunities
Changing consumer preferences
Growing health consciousness in UAE,
therefore possibility of new healthy
product line
Growing demand for environment
friendly product i.e. recyclable cans
Make different brands to match
different consumer tastes and cultures
Threats
Growing consciousness of healthier
beverages in UAE
Scarcity of water in UAE, which raises
production costs
Methodology for primary data
collection
Type of research
Method adopted
Questionnaire Types
Sampling design
Hypotheses

The coca cola company succeeds in consumer satisfaction in UAE.
The research main aim is to check the hypothesis
Analysis

The research done to check the coca cola consumers satisfaction
ability put into consideration a few satisfaction aspects as
explained below.

50 people participated in rating the aesthetic quality of the
beverage. At a rating ranging from 1-5, the rating was found to be
3.84

49 people rated the non aesthetic quality and the mean rating was
1.6939

On the functional consideration of coca cola package. The 50
people participating rated it as 3.84 with respect to the range 1-5

In the range 1-4, the rating questioning functionality of the package
was 1.77

The rating of reasonable pricing of the coca cola can was 3.66 at
the range of 1-5

The rating proving that the can was unreasonably priced was 1.85
at the range of 1-5

Majority of the participant rated the ability of the beverage in
making them feel good after consumption as 3.14 while the rating
of not feeling good after consumption was 2.306

In the rating range of 1-5, majority of the 50 participant rated the
coca cola quality satisfaction as 3.46 while the unsatisfying quality
were rated at 2.16
Description of sample
(demographics)

The demographic factors are things that are very important for us to
know and work with

The demographic factors must be taken into consideration in
marketing a product

For the above sample, various demographic factors have been
taken into consideration.

In identifying the consumer satisfaction from coca cola product, all
the demographic factors relating to consumer satisfaction have to
be identified and analyzed correctly

The sample looks at the packaging aesthetic and checks the
consumer consideration of coca cola packaging aesthetic

The second demographic factor is the pricing. The pricing of
product plays an important role in attracting demand. The pricing of
coca cola products have been found to be fairly priced.

The third demographic factor is the impact the drink gives the
customer after consumption. Many customers have shown that the
drink makes the feel happy after consumption.

Considering, the sample we can notice that the coca cola drinks
are consumed by all people irrespective of other demographic
factors such as age, marital status, occupation, religion, sex and
education level.
Univariate Analysis

Univariate analysis is done by taking into considerations the
measures of central tendency.

The measures of central tendency include

The mean

The standard deviation

And the measure of dispersion

Taking into account that the data was rated in the scale of 1-5 for
all factors affecting coca cola we can find the mean and standard
deviation
mean

The mean will be calculated by finding the summation of the data
the divided by the frequency. Such that
n
X = S X i /n
i=1

Where: Xi = observed values of the variable X
n = number of observations (sample size)

For our sample, the mean can be calculated as gotten as
n
minimum
maximum
mean
Aesthetically
pleasing
50
1
5
3.84
Not aesthetically
pleasing
49
1
4
1.69
Function
packanging
50
1
5
3.84
Unfunctional
packaging
49
1
5
1.77
Resonable price
50
1
5
3.66
Unreasonable price
48
1
5
1.85
Feel happy
49
1
5
3.14
Don’t feel happy
49
1
5
2.31
Satisfied
50
1
5
3.46
unsatisfied
49
1
5
2.16
standard deviation

Variance is the dispersion divided by the number of observations.
The variance can not be negative

The standard deviation is the square root of the variance:
sx =

n
(Xi - X)2
S
i =1 n - 1
For Our sample data, the standard déviation can be calculated as
n
minimum
maximum
Standard
deviation
Aesthetically
pleasing
50
1
5
1.18425
Not aesthetically
pleasing
49
1
4
0.8466
Function
packanging
50
1
5
1.18425
Unfunctional
packaging
49
1
5
1.02602
Resonable price
50
1
5
1.39401
Unreasonable
price
48
1
5
1.03121
Feel happy
49
1
5
1.25831
Don’t feel happy
49
1
5
1.32609
Satisfied
50
1
5
1.12866
unsatisfied
49
1
5
1.16094
4 bivariate analysis

In the bivariate analysis, we will consider four approaches namely

Crosstab analysis

Mean comparison: T-test

Correlation analysis r

Pearson correlation
cross tab analysis
Considering the overall quality of consumer satisfaction, the mean of
satisfied and not satisfied is 3.46 and 2.16 respectively. That means, out
of 50 customers 30 are satisfied while 20 are not then the n = 50.
The hypothesis H0 is formulated to be that the overall quality of
consumer satisfaction governs the amount of sales
interpretation

There have been found to exist a relationship between the
consumer satisfaction to the amount of sales

Although, the relationship is not very strong, it can be seen that the
hypothesis exists in such a way that those who find coca cola as
not pleasing do not take it. The 40%
mean comparison test

using the mean comparison test, we can set the hypothesis at, the
coca cola is able to satisfy the consumers in all dimensions

Setting the consideration at p=0.05 that is 95% level of confidence
then the spss mean for consumers are satisfied is 3.46 and that for
consumers are not is 2.16
interpretation

The hypothesis can be adopted by checking the mean for the two
variables.

Although, the relation is low as the mean of those satisfied is 3.46
and those satisfied is 2.16, the relation still hold that the company is
able to satisfy the consumers
correlation analysis r
In the correlation analysis, we identify the two variables which are

The consumers are satisfies by coca cola services and

The consumers are not satisfied by coca cola services

Plotting a linear graph of satisfied consumers against unsatisfied
ones we can conclude that as the number of satisfied consumers
increase the number of unsatisfied consumers decrease.

While ranging from 1-5, it is shown that the number of satisfied
consumers is 3.46 and that of unsatisfied consumers is 2.16
Pearson correlation
In Pearson relationship, we mill find the relation between consumer
satisfaction by the coca cola company. By considering the position of r
the we can conclude if

The company has satisfied the consumers

The company has not satisfied the consumers

Checking the standard deviation of satisfied consumers as 1.12 and
the unsatisfied as 1.16 then the relation Is strong. And we can
conclude that the relation is almost at equilibrium.
Managerial recommendations

Customer satisfaction is a key element for the success of a business

A failure of the management team to put into consideration the
customers preference and taste, can result to the failure of the
whole business

Understanding the consumer needs and preference and also
understanding their consideration about the product is an essential
element in management

The managerial recommendations to the coca cola company
include

Carry out a market research aimed at investigating the following
aspects
1.
The needs and gaps in the market
2.
The consumer taste and preference on beverages
3.
The competition level and methods of approach
4.
Listen to the recommendation the customers have on the
improvement of the products

Carry out shows exhibitions where they demonstrate the benefits
and advantages of their products and also persuading potential
customers

Organize for rallies where they offer free drinks to the customers as
well as educating them about their products

They should change their products to suite the customers needs.
Limitations of the research

In every research, there exists some limitations

Since the study was done through questionnaires, then the sample
taken to represent all consumer could not be evenly distributed
therefore the exact situation in the market could not be determined

The participant could not have given the real information. Some
could have lied so as to appreciate the company

Rating of the factors in the 1-5 is not effective as rating in the range
1-10.
Conclusion

In conclusion, different factors that affect coca cola consumer
satisfaction has been analyzed and their extent determined. The
results from the research indicates that about 60% of consumers are
satisfied by the product while the other 40% are not. An analysis
shows that rating the factors in the range of 1-5, the mean ranges at
3.5 which can be expressed into a percentage to mean 70%. The
relationship on satisfaction is found to be higher by use of bivariate
analysis, other factors has low relationship.

The factors affecting the consumer stability include
1.
Aesthetically pleasing of the package
2.
Functionality of the packaging
3.
Pricing of the packaging

Impact the product gives the consumer after consumption

And the general satisfaction by the overall product
An univariate analysis of the sample shows that the mean from each
factors of consideration is greater on the consumer satisfaction as it is
less on the consumer unsatisfaction
Therefore, the coca cola company has succeeded in satisfying its
consumer but also as it is indicated by the standard deviation many
consumers are also not satisfied. The company will have to change the
marketing plan, consumer services and products promotion methods
in an aim of increasing the level of consumer satisfaction.