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  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  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  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 X = X i / n  i=1 n

nminimummaximummean Aesthetically pleasing Not aesthetically pleasing Function packanging Unfunctional packaging Resonable price Unreasonable price Feel happy Don’t feel happy Satisfied unsatisfied

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:  For Our sample data, the standard déviation can be calculated as s x = ( X i - X ) 2 n - 1   i = 1 n

nminimummaximumStandard deviation Aesthetically pleasing Not aesthetically pleasing Function packanging Unfunctional packaging Resonable price Unreasonable price Feel happy Don’t feel happy Satisfied unsatisfied

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.