THE STUDY OF CONSUMER’S ATTITUDES AND BEHAVIORS …

THE STUDY OF CONSUMER'S ATTITUDES AND BEHAVIORS TOWARDS CARBONATE SOFT DRINKS

THE STUDY OF CONSUMER'S ATTITUDES AND BEHAVIORS TOWARDS CARBONATE SOFT DRINKS

Arunee Nakmongkol

An Independent Study Presented to The Graduate School of Bangkok University

In Partial Fulfillment of the Requirements for the Degree Master of Business Administration

2009

? 2009 Arunee Nakmongkol

All right Reserved

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Nakmongkol,Arunee. Master of Business Administration, June, 2009, Graduate School, Bangkok University The study of consumer's attitudes and behaviors towards carbonate soft drinks (148 PP.) Advisor of Independent Study: Dr. Paul TJ James

ABSTRACT

Thai Carbonate Soft drinks market In Thailand, the carbonate soft drink is a huge part of the total drink market,

representing 43% of the total share of throat in the soft drink category, for a total value of THB 109 billion.

The growth of the sector is low, estimated to 3% by the Euromonitor, in a market dominated by only 2 key players representing between themselves 84% of market share, namely Thai Pure Drinks Ltd (coca-cola) with 45% market share and Sern Suk (Pepsi) with 39% market share as of 2007. Challenges of carbonate soft drink market: new trends - products

Growing concerns over obesity, diabetes and overall evolution in health awareness have lead to a very strong development of the health and wellness trend amongst developed countries' consumers. This trend is now reaching Thailand and means a new look at the nutritional benefits of drinks, such as green tea, and a questioning in the sugar contents of soft drinks.

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Challenges of carbonate soft drink market: new trends ? distribution Another evolution of the Thai market over the last 5 years that has a profound

impact on the drink market overall, and the carbonate soft drink in particular, is the revolution of the distribution, as seen by the disappearance of traditional distribution and the new dominance of supermarkets and local convenience stores. Such an example of this change is the massive growth of 7-Eleven, with its plans to open 500 new stores every year for the next coming years. Currently controlling over 3,500 outlets nationwide, strategically to maximize its reach of the population, and therefore enhance consumptions opportunities, 7- Eleven is fast emerging as a key distribution partner that is more and more able to shape manufacturers offer to fit its customers needs.

The consequences of this situation for the soft drinks markets players are that growth can only be gained on the competitors via new products launches and / or by strategic control of distribution channels to reach the consumers.

As a result, the underlying key issue is that consumer behavior insight in terms of taste and shopping patterns are vital elements of the strategy of the drink market players. Underlying Theory of drinking behavior

The literature review has explored the different elements that compose customer behavior. These elements will provide a better understanding of what is meant by customer behavior. Combined with Maslow's hierarchy of needs, 6 key drivers for understanding customers' behavior and needs when analyzing their drinking habits have been identified.

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The combinations of Health, Thirst, Affordability, Convenience, Imagine and Status and Sociability will the factors that will trigger the motivation and the purchasing process. Gathering the research Data

The research instrument used to collect primary data for this study is a questionnaire. The questionnaire is designed in English and translated to Thai language, the research questions are designed according to conceptual framework for answering the main objectives of the study. Research Results

The Thai consumers appears to be a young male, aged 15 to 30 years old, with an average drink consumption frequency of 2 to 3 times per week. His favorite drink is Coke classic. He is a consumer that is highly susceptible to trying new products; he is overall brand conscious, health conscious and price sensitive.

Going beyond this first picture, the analysis shows that there are some clear distinction in attitudes and expectation between genders, ages and finally urban and countryside customers.

Female consumers show the strongest interest in carbonate fruit juices, and show the highest level of interest in low sugar drinks.

Urban consumers show the highest level of interest in lower sugar drinks, they are less price conscious and more likely to spontaneous, unplanned purchases. They are individual drinkers who look for refreshment.

Countryside consumers show less interest in low sugar soft drinks. Their purchases are usually planned, and drinks are purchased for family consumption, most likely with

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meals. They are brand conscious and more price conscious than their urban counter parts.

The Thai consumer is not yet as sophisticated as the global drinker presented by the study. There is a clear division between the urban, more health conscious and more image driven consumers and the countryside consumer, who is more brands and price sensitive.

From the data gathered in the study, 2 trends have been identified amongst the Thai consumers suggesting interesting opportunities for new products development. Theses trends are carbonates fruit juices consumption and healthier lifestyle aspiration.

The carbonate soft drinks manufacturers have overall strategic opportunities in order to keep their market share and retain customers. They start with specific branding and communication to a longer term approach of new products development specifically targeted at different segment of their consumers in order to answer their specific needs.

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