This marketing research report summarizes a study on brand loyalty to Coca-Cola. The researchers conducted a survey of 30 people and analyzed the results using SPSS. Key findings include:
- The sample was majority female (57%) and between ages 20-25 (43%).
- Most respondents earned between 600-1500 TL per month (93%).
- Statistical tests found no significant differences in brand loyalty based on gender or income.
- Regression analysis showed a positive relationship between brand loyalty, age, and lifestyle image matching Coca-Cola's branding.
- A weak positive correlation was found between brand loyalty and lifestyle image matching.
The report concludes there may be an opportunity for Coca-Cola to
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Marketing Research Reveals How Coca-Cola Builds Brand Loyalty Through Lifestyle Imagery <40
1. 1
Marketing Research
Of
Coca Cola
In may 8 1886, a pharmaceutist Dr. John s.Pemberton made a refreshing and delicious syrup
on his triple legged teapot in his house at Georgia Atlanta and treated his friends. That day
Coca Cola was born. Since it contained high amounts of sugar, cocoa nuts and coca leafs the
beverage was named Coca-Cola and this beverage was so appreciated that it started to be sold
for 5 cents per glass. From that day to now Coca-Cola has become one of the most popular
and overwhelmingly leader of gas-filled beverage sector in most of the countries around the
world.(Inventors.about.com)
In nowadays, there are two biggest companies around the world produces a cola type
of soft beverages.Those are Pepsi cola& Coca-cola. In the commercials of Pepsi in Turkey
they used Madonna or Ricky Martin, whereas Coca Cola used Tarkan and Cuneyt Arkın .
From this point one can see that Coca-cola is using local themes whereas Pepsi are using
universal themes hence their commercial strategies are bearing certain lifestyles too.
Also due to the developing new brands in these field, and the new marketing strategies
of the existing companies Coca- Cola showed that it can usually lose its market share easily.
One can see this from the Cola- Turca example; In 2005 when Cola-Turca got in the market
it easily captured the %22 of total market share via suporting a nationalist lifestyle marketing
stragtegy. Eventhough in later years Cola-Cola has regained its market share back it gave rise
to a question of how can make a consumer loyal to Coca-Cola all the time.
If we assume that people prefer the products which are more likely matches their
insights, than from this point we can conclude that the brands who are succesful on this will
eventually gain the loyalty of its consumers
The NeedFor Research:
There's a high competition between the low-involvement products sector in particular, the
beverage sector. Hence, if the usage of these products also creates or supports brand loyalty
due to the accompanying lifestyle images, then it can easily attain the loyalty of these groups
by supporting this lifestyle. Therefore it will have a competitive advantage. Eventually among
others, the ones who were more succesful on supporting certain lifestyles will be more
succesful than others.
2. 2
Problem: Increasing the sales and making consumers buy only from Coca Cola by creating
supporting certain lifestyles.
ResearchObjectives
What are the components which make up the brand loyalty
What are the factors which defines the image of a company from a consumer side
What do consumers demand from a low involvement products and are we succesful on
meeting those demands
How can we attain the loyalty of the individuals in particular on the buyings of low
involvement products in particular Coca Cola?
What kind of steps should we take?
ResearchQuestion
Can Coca Cola attain brand loyalty via creating and supporting certain lifestyles?
Hypothesis: Brand loyalty & lifestyles
In terms of:
-Income level
-Gender
-Age
-Consumer profile
-Education Level
Factors influencing Brand Loyalty
Perceived Value
Brand Trust
Customer Satisfaction
Repeat Purchase Behavior
Commitment
3. 3
ResearchDesign
To prove the relationship between creating & supporting lifestyles and establishing brand
loyalty we are going to collect information for a hypothesis test. In this sense we are going to
make descriptive research. From this longitudinal study we are going to define a sample of 30
persons which will include the people from different ethnic educational background with
different ages and different income level who will represent the whole population .With this
way, we are going to survey them. This survey will include two things. First, it will evaluate
the brand loyalty, then we will describe the certain lifestyle images that Coca-cola represents
in its commercials on Turkey. And we will test if the ones who matches with the values which
Coca-cola represents are more loyal from the ones that mismatch the values. With the usage
of qualitative way, we will aim to to collect information to gather the necessary primary data
by using close ended & frequency questions. This survey will include the questions which
emphasizes the relationship between creating & supporting various lifestyles and brand
loyalty. Eventually we will type the answers to the Spss and run a significence test if
ultimately B turns out to be a significant it will show that there's relation or vice versa.
The result of this test will show us if there is an opportunity to exploit. Consequently, we will
suggest some strategies to the firms who produce low-involvement products such as Coca-
Cola.
Interview type and focus group
After gathering around a group which contains of 5 persons from different age, gender, ethnic
background, income, and education level with different tastes we simply asked their opinions
about the brands of the products which they constantly use, and what makes them to use
these brands and then we asked about their opinions about coca cola and how they see coca
cola as a brand.
In this sense we tried to catch a bonds which makes up the brand loyalty, thus after this point
we may aim to stimulate this bonds and increase sales.
4. 4
Results
Question 1
Do you think people always prefer the same brands which reflect their lifestyles and do you
thing this preference still applies when it comes to the products which are relatively cheap and
easily reachable?
When it comes for people to decide about their consumption their determination depends on
some variables. In this sense income level is taking the first place but besides of this they
decide intuitively, meaning that they use their political and ethnic background in sense of
determining their consumption bundle. Also people are in search for reliable goods in this
sense they prefer durable brands.
Question 2
Does it effect if a good is high involved or low involved?
The same rule is still applied in here too. People still prefer first the brand which satisfies their
background but the determining part is still depend on the money which individuals have. In
this sense one would not use a Fiat cars just because this company satisfied their some
insights when they have the money.
But when it comes the low involvement good this rule of thumbs takes a different form. Since
most of the low involvement products are relatively cheap than high involvement products
they are more achievable hence the ruleof thumb turns around and intuitives of the consumers
becomes the primary determinant
Also since people care their health when it comes to the goods which can be eaten and they
are aware that they need to be careful hence it is increasing the tension on behalf of the low
involvement products.
Question 3
What are the qualities that is a must for you to be a brand loyal
In this question, group gave the same response everyone in the group said that a company
must be reliable it must be durable and it must meet the local needs of the people
and it must have a good reputation. Also it must be reachable, it must be well packaged the
look of the product must be attractive
Question 4
What do you think about Coca cola and do you think if there are some strategies which they
are succesful unsuccesful?
Coca cola is a very succesful commercial enterprise in a way of its price, promotion,
reliability and durability and thus it is a common choice of most of the people but still there
are lots of problems of its products, they are not healthy they bear caffeine and they do not
announce their recipt forn this reason it is a subject to speculations such as it bears pig oil etc.
But besides of that they are very succesful overall.
5. 5
Brand Loyalty (As a Marketing Scale)
“A three item seven point, likert-type scale measuring the degree to which a consumer
expresses loyalty to a brand and is unwilling to even try others.
In this sense data was gathered by Putrevu and Lord (1994) from students in an
introductory undergraduate marketing course taught at a Northeastern U.S University.
Appearently, usable data were collected from 100 students who voluntarily participated for
extra credit in course. Demographic data about the respondents were collected but were not
described in the article.
From this data Putrevu and Lord have found an alpha of 0.59 for the scale which is
considerably low to be an evidence of unreliability.
Also, no evidence of scale’s validity was provided by Putrevu and Lord. However,
close scrunity of the items indicates that more than one factor appears to be represented. The
lack of reliability and the appearance of multidimensionality strongly suggest that the scale is
not valid and should not be used further until substantial improvement in its psychometric
quality is made.”
Reference: “Marketing Scales Handbook”
6. 6
Questionnaire
Name: ____________________
Address: ____________________
Phone Number: ____________________
Email id: ____________________
Q1) What is your age?
a) 15-20
b) 21-25
c) 26-35
d) 35-45
e) 46 or more
Q2) What is your education level?
a) 0-8 years (Elementary school)
b) 9-12 years (High school)
c) 12-16 years (University or 2 years of university education)
d) 16-18 years (Masters’ degree)
e) 19 years or more (PhD)
Q3) What is your gender?
a) Male
b) Female
c) Other
Q4) What is your income level?
a) 0-600 TL
b) 600-1000TL
c) 1000-1500 TL
d) 1500-2500 TL
e) 2500 TL or more
7. 7
Q5) Use the following scale to indicate the level of agreement you have with each of the
statements regarding the brand of Coca Cola you buy most frequently
Strongly Disagree :1:2:3:4:5: Strongly Agree
a) Price of a Coca cola is the vital element of choosing it:……
b) I always purchase the brand of Coca-Cola:……
c) I am willing to buy a new bottle/can of Coca-Cola:……
d) My overall opinion of the Coca-Cola is very good:….
e) My level of trust to the beverages from Coca-Cola is high:…..
f) If I had the chance to buy the same product from a different brand with the same price,
I still would not change my brand
g) I would recommend the products of Coca-Cola to other people
Q6) Do you or your family use different brands such as Pepsi, Cola Turca, Le Cola etc. If so
please indicate the frequency of usage within a month in terms of bottles or cans
a) Never
b) 1-5 bottles or cans
c) 6-10 bottles or cans
d) 11-20 bottles or cans
Q7) What is the quantity of the Coca-Cola bottles or cans you use in a month?
a) 0-1 times
b) 2-5 times?
c) 6-20 times?
d) More than 20 times
Q8) Please indicate your views on Coca cola with scoring them on a scale of 1 to 5
a) Packaging and product information of the product with
b) After service of the product
c) Value for the money
d) Taste of the Coca-Cola
e) Quality of the Coca-Cola
8. 8
Q9)Use the following scale to indicate the level of agreement you have with each of the
statements regarding the life styles that describes you
Strongly Disagree:1:2:3:4:5: Strongly Agree
Peaceful
Sportive stable
Active
Boring
Ammusing
Crazy
Routine
Workaholic
Q10) Use the following scale to indicate the level of usage you have with each of the items
below in your daily life
Never:1:2:3:4:5: Always
Water
Juice
Cola
Spring Water
Milk
Alcoholic beverages
9. 9
Q12)Use the following scale to indicate the level of agreement you have with each of the
statements regarding the activities you use the products of Coca-Cola
Never:1:2:3:4:5: Always
Launch/Dinner
With Dates / Friends
Restaurants
After Sports
While Studying
Concerts
Beach
Q13)Use the following scale to indicate the level of familiarity you have with each of the
statements regarding the slogans of the Coca Cola that catches you
Not at all :1:2:3:4:5: quite familiar
Drink Coca-Cola
Drink of Quality
Good till the last drop
Coke knows no season.
Whoever you are, whatever you do, wherever you may be, when you think of refreshment,
think of ice cold Coca-Cola.
Enjoy life.
Refresh yourself.
Pure as Sunlight
Things go better with Coke.
The best friend thirst ever had.
Can't Beat the Real Thing
Life tastes good
Twist The Cap To Refreshment
10. 10
The Final Report of Our Marketing Research
We prepared a survey and let 30 people to fill this survey. According to that we entered the
answers to the spss and made several analysis. The first one above them was frequance
analysis of the people who made up our research. From that we saw that %23 of our sample is
made up from the people who are 21 years old and %20 od our sample is 20 years old. One
can easily see from the pie charts of this distribution.
11. 11
Also our sample was made up %43.3 by male and %56.7 by female population
Also %60 of our sample has a monthly income between 600-1000 TL within a month whereas
%33.3 has an income between 1000-1500 & %6.7 has 1500-2500 TL a month
12. 12
Also since our sample is made up from the people from our university we do not see any need
to put a pie chart which represents the education level.
Afterwards with using Compute Variable function we prepared an average of the scales which
we we used to test the concepts such as Brand Loyalty and Lifestyle of Coca Cola and we
named them BRL AVR (meaning that Brand Loyalty Average) and LS AVR (meaning that
Lifestyle Average) and we conducted our analysis via using these variables.
INDEPENDENT SAMPLES T-TEST
First we made an independent samples T-Test to see if there is a mean difference in terms of
gender. We constructed our null hypothesis as no difference between males and females
And Alternative hypothesis as there’s diffeence between males and females.
Ho: there is no difference between means of males and females
H1: there is difference between means of males of females
The significance values of levene’s test is larger than 5%, so we will assume equal variances.
13. 13
Significance level of t-test is 0.981, so we do not reject Ho.
It means that there is no difference between means of males and females in terms of brand
loyalty.
ONE-WAY ANOVA TEST
Ho: the group means are same
H1: at least one of them is different
The significance value in Anova Test is 0.83 which is larger than 0.05.
This means we will not reject Ho.
In other words there is no difference between group means. It does not matter if the
respondent is male or female, all of them have the same mean in terms of loyalty.
REGRESSION
In regression analysis we tried to estimate BRLAVR.
We used two predictors for this estimation LSAVR and Age.
BRLAVR = -0.785 +0.081*Age +0.79*LSAVR
From this regression one can see that there’s a positive relationship between age and brand
loyalty that if we increase the age by 1 unit Brand loyalty increases by 0.081 and if we
increase Average lifestyle by 1 unit brand loyalty increases by 0.79 which is quite high.
Hence it might be a good instrument for Coca cola managers to exploit this situation.
Correlation
From the pearson correlation analysis that we have run we found that there’s a week positive
relationship (0.273 which is lower than 0,5 ) between Brand Loyalty and Lifestyle of Coca
Cola.Hence we can conclude that between Brand Loyalty and Lifestyle of Coca-Cola there’s a
week linear relationship which is nevertheless significant.