The Coca Cola Company: Information on the Product - Research Proposal Example

Marketing Research Proposal Table of Contents Background information on the organization and the product/service 2 Problem statement 5 Research objectives 5 Proposed research method 6 Use of quantitative/qualitative research 6 Qualitative research proposed 7 Sample plan 8 Population definition, sampling unit, etc 8 Sample frame 9 Sample size calculation 9 Sampling method 10 Sample validation 10 Quantitative research 10 Data collection method proposed 10 Questionnaires 10 General guidelines to be used to design the research instrument 11 Overall quality of research instrument (questionnaire), creativity with measurement scales (provide a copy of the questionnaire) 12 Copy of the Questionnaire 13 Ethical considerations (during both the qualitative and quantitative research stages) 4 15 Proposed timetable 15 Proposed budget 16 References 18 Background information on the organization and the product/service The Coca Cola Company is a US based multinational company that was established in 1892 by Asa Candler, whose main headquarters is in Atlanta Georgia (The Coca Cola Company, 2012). The company specializes in production, retailing and marketing of syrups and non-alcoholic beverage concentrates. In the financial year ending 2010, the Coca Cola Company registered annual revenue of more than thirty five billion US dollars, a net income of close to twelve billion US dollars with an operating income of 8,449 billion US dollars as highlighted by The Coca Cola Company (2012). In the same financial year, the company had total assets of more than seventy two billion US dollars with a total equity amounting to 31.317 billion US dollars with a workforce capacity of 139600 employees. COR et al. (2011) notes that in the year 2010, the company was declared the first brand to surpass the one billion pounds mark in annual grocery sales in the United Kingdom. Coca Cola company undertake its operations through a franchised distribution systems where it produces the syrup concentrate that it sells off to varied bottlers around the globe, who have exclusive territory. According to The Coca Cola Company (2012), the company’s mission is to refresh the world, to inspire moments of optimism and happiness and to create value and make a difference while the company vision are to create sustainable people, profits, portfolio, partners, planet and productivity. Following an analysis of the company’s products, prices, positioning, packaging, promotion and place, there were elements that were unique to Coca Cola in regards to these marketing aspects, which allowed for establishment of existing and potential opportunity for the company in both domestic and international market. In regards to products, Coca Cola has a wide range of product offerings ranging from soft drinks, energy drinks, sport drinks, water, teas and coffees and juice drinks among others. For the soft drink production line, Coca Cola produces Fanta, Coke, Sprite and Diet Cokes (COR, et al., 2011). In regards to packaging, the Coca Cola soft drinks comes in varied bottle sizes which ranges from standard size of returnable bottles of 300 ml, 500 ml and one liter, and similar measurements of disposable plastic bottles as noted by The Coca Cola Company (2012). The Coca Cola products also include 330 ml tin packs. Conclusively, all the aforementioned products are packed differently in standard bottle shell, bottle pack and crates. In relation to prices, Coca Cola is faced by stiff competition from its major competitor Pepsi Company and as a result, the pricing strategy adopted by the company is meant to ensure that it sustains existing customers while attracting new ones. Prices on Coca Cola products are applied taking into consideration the competition forces as echoed by COR et al. (2011). Be it as it may, the prices are standard globally and they vary very slightly with price changes occurring once in along time, say annually. The recent financial and economic downturn has seen prices on Coca Cola products increase, with a bid to counter the high cost of production. The company invests hugely in its promotion strategies meant to enhance its brand awareness, brand name and equity which has generated global recognition (The Coca Cola Company, 2012). Almost 95% of world’s population recognizes the brand. Among branding strategies adopted by the company includes generic branding, manufacturer’s branding strategy and hybrid branding strategy among others. The most used branding strategy is the individual branding strategy where major products have their own brand names such as Sprite, Coke and Fanta despite the fact they operate under the Coca Cola brand as indicated by COR et al. (2011). The company has utilized print and electronic media coupled with outdoor advertising to promote her brands products. In relation to the marketing aspect of place, the firm has put great emphasis on broad and wide scale supply and distribution in Asia, Oceania, Africa, Europe, South and North America (The Coca Cola Company, 2012). According to COR et al. (2011), the Coca Cola establishes its own distribution channels directly to stores which includes supermarkets, convenience stores, restaurants, departmental stores and retail stores . The company has established a wide and long supply chain and has set up warehouses for certain products globally. Despite the immense success the company has generated in effectively and efficiently meeting the needs, expectations and tastes of its customers, there is a market problem of which the Coca Cola Company needs to focus on in order to ensure it not only sustains its market share but also it is able to enhance its competitive advantage. The main threat which can effectively be changed into an opportunity is the increased health awareness of modern consumers who are shying away from carbonated foods and drinks, of which Coca Cola specializes in, to more healthy drinks and foods as supported by COR et al. (2011). This comes in the backdrop of increased cases of lifestyle diseases such as obesity and diabetes, which has forced consumers to re-evaluate what they put into their mouths. Among efforts Coca Cola has put forward to attend to the new needs and preferences includes establishment of the Diet Coke and the 2011 launch of low and no-calorie beverages such as Coca Cola Zero. In the year 2010, the company spent close to twelve million US dollars in supporting health and wellness and programs on active and health lifestyles as highlighted by The Coca Cola Company (2012). Problem statement Following the increasing need for modern populations who are the consumers to be fit and healthy by avoiding foods and drinks considered unhealthy such as soft drinks, which have excess amounts of sugars, and calories that contribute to development of lifestyle diseases such as diabetes and obesity. Producers or companies producing such products are finding these new trends a threat to their business sustainability (COR, et al., 2011). Nevertheless, this can present as an opportunity where the affected companies can effectively and efficiently produce products that are aligned or meet these new needs hence, enhancing and sustaining the company’s competitive advantage. The main research problem therefore, is to analyze whether the recent shift from sugary and carbonated products to more healthy beverages and products by global consumers a threat or an opportunity for Coca Cola Company. Research objectives The main research objectives are To establish the attitudes of consumers about carbonated products in general To identify the consumer perceptions of Coca Cola’s carbonated drinks following the recent health awareness debate To evaluate the impact of recent health awareness on sustainability of Coca Cola’s carbonated products To establish ways the threat of consumers shying away from carbonated products can be effectively managed To identify alternatives to carbonated drinks To establish how the threat can be transformed into an opportunity for Coca Cola Proposed research method Use of quantitative/qualitative research In order to effectively examine whether the recent health awareness among global consumers is a threat or an opportunity for Coca Cola and to evaluate the impact the new trend has on sustainability of Coca Cola’s carbonated products, both qualitative and quantitative research will be carried out. The qualitative research methodology will be useful in the research in establishing the attitudes, perceptions and outlook of participants and hence, offer in-depth insight into the research problem (Thomas, 2003). The underlying reason for utilizing qualitative research methodology is its capacity to generate more specific answers, which are essential in responding to the problem statement and more significantly in helping the researcher effectively and efficiently achieve the set research objectives as supported by Wengraf (2001). Alternatively, the use of quantitative research methodology is useful in helping cover a large population sample required to represent the global population and in collection of sufficient amount of data that is crucial in verifying the set hypothesis (Saris & Gallhofer, 2007). In addition, this methodology enhances the validity, reliability of the data collected and it helps ensure the large population sample is sufficiently reached and the needed data is gathered (Thomas, 2003). Be it as it may, quantitative research methodology is limited in that it majorly utilize theoretical information and it is very rigid to making changes during the research process. Nevertheless, the limitation in this research proposal is effectively addressed through the incorporation of qualitative methodology. By applying both methodologies, the limitations of either is countered by the strengths of each one, which will help ensure that the collected, analyzed and presented data is pertinent, correct, valid and credible and more significantly, devoid of any errors during the research process. Qualitative research proposed The most preferred qualitative research method in responding to the problem statement and achieving the set research objectives is the use of semi-structured interviews. Connaway & Powell (2010) argues that through the use of semi-structured interviews, qualitative data shall be gathered. The appropriateness of semi structured interview as a research tool in carrying out this research is due to the fact that its use will be greatly advantageous for the research team in factoring in the non-verbal aspects of communication while interacting with the participants (Saris & Gallhofer, 2007). The research team will be best placed in seeking clarifications on information offered by the respondents using this technique and more importantly, the team will be able to develop new questions depending on emerging themes hence, generating a rich research portrait as suggested by Thomas (2003). According to Wengraf (2001), the research technique enhances the aspect of relevance and the researcher is able to get responses to questions in real time. However, the use of semi-structured interviews is limited in that; the technique is susceptible to researcher bias and respondent bias. In addition, carrying out semi-structured interviews it eats up a lot of time, energy and money and there is always the risk that the participant may not have the adequate time required to address all the questions the researcher has as supported by Thomas (2003). Be it as it may, the advantages of this research tool in carrying out this research outweighs its limitations making it appropriate for data collection for this specific study. The main issues addressed by the semi structured interviews includes consumption of carbonated soft drinks, consumption of low or no calories and sugar-added products, attitudes towards Coca Cola carbonated products specifically and what Coca Cola needs to do to sustain its present customers and attract and retain new ones. Sample plan Population definition, sampling unit, etc The efficacy, efficiency, consistency and accuracy of data is significantly, influenced by the sample representation used by the research. Population is described as the object of research that represents and characterizes the opinions, attitudes, values, principles and ideologies of a group of people, an individual, an institution, occurrences, phenomenon and conditions as described by Connaway & Powell (2010). Primarily, population is the precise aggregation of study elements. A population sample therefore refers to a portion of the population identified and selected from the larger population to represent the opinions, attitudes, values of the larger population (Saris & Gallhofer, 2007). The main aim of selecting a population sample in research is to draw inferences from the smaller population sample about the larger one (Wengraf, 2001). In sampling, there is the element, which refers to the unit about which data is gathered and which offers the basis for research, the sampling unit which refers to set of elements taken into consideration when selecting ring the sampling process such as households and blocks among others. For this research, the population sample will include participants who are both male and female, aged from 14 years to 65 from any social and educational background. In addition, it will constitute of loyal consumers of Coca Cola carbonated products, consumers who were using carbonated products before but have now stopped and consumers who take alternative products of carbonated products Sample frame Connaway & Powell (2010) indicates that the sampling frame is the definite list of sampling units from which the sample is derived. Sampling frame primarily means a list of the population under analysis as suggested by Bartlett et al. (2001). It is important that for this research, the population from which the sample is derived be relevant and matches with the aspect and elements of the study. Sample size calculation In selecting the population sample to work with, there is the sample size which refers to the number of elements in the selected sample (Saris & Gallhofer, 2007). For this research, the sample size constitute of 1,200 participants for collecting quantitative data and an additional 60 participants for collecting qualitative data. The suitable size of the sample is largely determined by the projected frequency of the element of interest, the desired degree of confidence and the acceptable margin of error (Wengraf, 2001). Using the simple random sampling selected for this study, the sample size will be calculated using the formula n= t2 x p (1-p) / m2 where n is the required size of the sample, t is the degree of confidence, p is the projected frequency and m is the margin of error of 0.05 Sampling method During sampling, there is the sampling design which is the set of rules or processes which outline the way the sample is to be selected which either can be through probability or non-probability method (Saris & Gallhofer, 2007). For this research, the most suitable sampling method is the simple random sampling, which is a probability sampling process which offers each element in the target population and every possible sample of a particular size, an equal opportunity of being selected as identified by Bartlett et al. (2001). Sample validation The sample size selected for this research is sufficient in offering multiplicity, clarity and ample data required to resolve the problem statement and achieve the set research objectives. (Connaway & Powell, 2010) notes that based on the law of large numbers, the estimates improve with the largeness of the sample size. Quantitative research Data collection method proposed Questionnaires The quantitative research method proposed to collect the required data meant to examine whether the change in attitudes by consumers towards carbonated products is a threat or an opportunity for Coca Cola Company is the use of structured questionnaires. Although questionnaires are limited in that they are prone to researcher bias during the setting up the questionnaire and respondent bias when answering the questionnaire, the research tool offer varied benefits that lack in other quantitative research methods. Among the reasons for the suitability of this tool is that the data collected is quality since participants have ample time to assess their answers cautiously, which helps improve the reliability of data (Connaway & Powell, 2010). According to Oppenheim (1992), questionnaires permits uniformity owing to use of standard questions while the use of closed questions and codes enhances efficiency during data entry which significantly saves on time and reduces data entry errors that can impact on the research outcomes. Moreover, they are easy to administer, cost effective, applicable for large population sizes such as selected in this study and they can be used to seek responses from participants in marginalized areas through mail questionnaires and questionnaires posted online as supported by Saris & Gallhofer (2007). Questionnaires are preferable in examining attitudes and perceptions of participants. The use of questionnaires allows anonymity which ensures participant’s privacy that enhances the accuracy and reliability of data generated (Wengraf, 2001). The questions used in the questionnaire shall seek to get specific data from participates and their wording and the structure shall be evaluated prior to distribution of the set questionnaires. General guidelines to be used to design the research instrument Selecting the most suitable questionnaire, that is, whether to develop a new one or to translate or adjust an existing one occurs when one has clearly defined the concept they need to measure (Saris & Gallhofer, 2007). Among conditions determining selection of a particular questionnaire includes the appropriateness of the research tool for the analysis of the population, measurement components of the questionnaire, practical aspects such as copyright costs of the research and the burden on participants such as the difficulty in questions and the length of questions (Foddy, 1993). Before utilizing a questionnaire, it is critical to ensure the tool is valid and reproducible in design, population and setting in which it is to be administered (Connaway & Powell, 2010). This means that the researcher needs to consider content validity, where questions are accurate and they reflect in detail the concept it is purposed to measure, dimensionality, where there is consistency in the questionnaire, reliability, where the questionnaire is test and retested, validity and responsiveness of the questionnaire is verified (Oppenheim, 1992). In addition, when structuring the questions for the questionnaires, the vocabulary should be simple to understand, the questions should be short and precise and double-barreled and hypothetical questions should be avoided. It is crucial not to overtax the memory of the participant, to steer clear of double negatives and overlapping response categories (Foddy, 1993). More importantly, the questionnaire should be devoid of leading questions (Wengraf, 2001). Overall quality of research instrument (questionnaire), creativity with measurement scales (provide a copy of the questionnaire) As suggested by Oppenheim (1992), the duration of time between evaluations are crucial in establishing test and retest reliability where the time duration should not be too brief where respondents recall previous answers neither too long for respondents’ scores to have changed. Validation of questionnaire to examine its quality is essential and a sample should be utilized which is representative of population that the tool is to be used (Foddy, 1993). According to the author, use of similar sample should be avoided during questionnaire development and questionnaire validation. The use of a large sample such as that used in this study will permit cross-validation. Copy of the Questionnaire Name: Age: Sex: Q1. What is your preferred drink while you are on the go? 1. Soft drink 2. Water 3. Fresh fruit juice 4. Tea/ coffees 5. Milk Q2.When was the last time you consumed a carbonated soft drink? 1. Today 2. Within the last one week 3. Within the last three month 4. More than six months ago 5. More than an year ago Q3. Do you know any brands of carbonated soft drinks? If Yes state, if No skip to Question 4 Q4. How often do you consume your preferred drink? 1. Daily 2. twice to thrice a week 3. once to twice a month 4. once in two months Q5. Have you always had your present drink of choice? If Yes state and skip to Q7 if No, continue to Q6 Q6. Which was your previous drink of choice? 1. Soft drink 2. Water 3. Fresh fruit juice 4. Tea/ coffees 5. Milk Q7. What is the main reason for choosing your present drink of choice? 1. Nutritional value 2. Cost 3. To Quench Thirst 4. For entertainment and enjoyment Q8. If you were to change your present preferred drink, which one will you change to? 1. Soft drink 2. Water 3. Fresh fruit juice 4. Tea/ coffees 5. Milk Q9. What is the main reason for changing to the drink chosen in Q8? 1. Nutritional value 2. Cost 3. To Quench Thirst 4. For entertainment and enjoyment Q10. What do you think of Coca Cola soft drinks? 1. They are nutritious 2. They are refreshing 3. They contain too much sugars and calories 4. They are unhealthy Ethical considerations (during both the qualitative and quantitative research stages) 4 To ensure ethical considerations are effectively and efficiently carried out, the respondents supplied with questionnaires and those interviewed shall be given confidentiality forms meant to assure them that the data collected shall be used solely for the intended purposes and shall be safely disposed off. The respondents shall participate through their own consent and they will be free to withdraw their engagement if they want to as suggested by Foddy (1993). Authorization forms from relevant stakeholders shall be sought to verify the authenticity and credibility of the research. Proposed timetable The research process is proposed to take duration of four months commencing May, 2012. In the month of May, the activities will include sampling and designing the questionnaires and the semi structured interviews. In the month of June and July, the data collection process will ensue and in the month of August, the collected data shall be processed and analyzed and eventually presented to relevant stakeholders. Proposed budget The Estimated budget is as follows Items Amount in US dollars Printing materials 55,000 Field Researchers 280,000 Transport 150,000 Data entry agents 340,000 Computer systems 200,000 Contingency fund 250,000 Total 1,275,000 References Bartlett, J. E., II, Kotrlik, J. W., & Higgins, C. 2001. Organizational research: Determining appropriate sample size for survey research.  Information Technology, Learning, and Performance Journal, 19(1) pp43-50. Connaway, L.S. & Powell, R.R. 2010. Basic Research Methods for Librarians. New York: ABC-CLIO. COR, PDS & Kent, M. 2011. COCA-COLA: 125TH ANNIVERSARY. New Jersey: Perseus Distribution Services. Foddy, W. 1993. Constructing questions for interviews and questionnaires. Cambridge: Cambridge University Press. Oppenheim, A.N. 1992. Questionnaire design, interviewing and attitude measurement. London: Pinter Publishers Limited. Saris, W.E. & Gallhofer, I.N. 2007. Design, Evaluation, and Analysis of Questionnaires for Survey Research. Sidney: Wiley-Inter science. The Coca Cola Company. 2012. The Coca Cola Company. Accessible from http://www.thecoca-colacompany.com Thomas, R.M. 2003. Blending qualitative & quantitative research methods in theses and dissertations. London: Corwin Press. Wengraf, T. 2001. Qualitative research interviewing: biographic narrative and semi-structured methods. London: SAGE. Read More