Research Project: Brand Loyalty in the UK Soft Drink Market

This research project investigates the factors influencing brand loyalty within the UK soft drink industry, with a specific focus on a comparative analysis of Pepsi and Coca-Cola. The report examines consumer preferences for carbonated beverages, the impact of brand awareness on consumer inclinations, and the key components affecting brand loyalty. The study employs a qualitative research design, utilizing an inductive research approach and a survey-based data collection method via online questionnaires. The literature review explores existing research on the evolving soft drink market, consumer trends, and the impact of health concerns on consumption. The methodology section details the research design, data collection, and analysis methods, along with the limitations encountered. The findings section presents the results of the data analysis, including thematic analysis of the survey responses. The report concludes with a critical appraisal, recommendations, and suggestions for the soft drink industry, offering insights into how companies like Pepsi and Coca-Cola can maintain and enhance customer loyalty in a competitive market.

RESEARCH PROJECT

ABSTRACT
Food and beverage industry is one of the most developing industry today. This research
project had examined actors affecting brand loyalty in soft drink industry of UK based on a
comparative analysis of Pepsi and Coca-Cola. This research project has successfully obtained the
examination of the shopper inclinations for carbonated beverages in UK, analysed the effect of
brand on shopper inclinations, examined the components influencing buyers mark steadfastness
for soft beverages and assessed all the issues influencing brand dependability of customers.

SUMMARY
Today competition in soft drink industry has increased a lot and therefore all the
Organisation's in this industry need to bring changes in themselves in order to gain competitive
advantages and increase their customer base. This research project had focused on factors that
affects brand loyalty in soft drink industry of UK and had answered all the research questions
such as effects of brand awareness on shopper needs and their inclinations towards carbonated
beverages and components that influences mark dependability for Coca-Cola and Pepsi. This
research project report will cover aim, objectives, research questions, chapter preview in
introduction, Literature review that helps in studying all the gaps in the study, attain expected
results, reach conclusion where comparative discussion about Pepsi and Coca-Cola soft drinks is
done. Then research methodology that are used in this research project had been discussed such
as qualitative research design, inductive research approach, qualitative data collection method
like online questionnaire survey data collection method, probability sampling method with all the
limitations faced by researcher in completion of this research project, data analysis and finding
from all information collected from primary data collection method is done with the help of
thematic analysis then critical appraisal, recommendations and suggestions regarding the same
had been discussed and lastly overall conclusion on the topic had been given.

TABLE OF CONTENTS
ABSTRACT.....................................................................................................................................2
SUMMARY.....................................................................................................................................3
CHAPTER 1: INTRODUCTION....................................................................................................5
1.1 Project introduction..........................................................................................................5
1.2 Aim...................................................................................................................................5
1.3 Objectives.........................................................................................................................5
1.4 Research Questions..........................................................................................................5
1.5 Approach and Methodology.............................................................................................5
1.6 Chapter preview................................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................7
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................10
3.1 Research Design.............................................................................................................10
3.2 Research Approach.........................................................................................................10
3.3 Data Collection...............................................................................................................11
3.4 Sampling.........................................................................................................................11
3.5 Data Analysis..................................................................................................................11
3.6 Research limitations.......................................................................................................12
Chapter 4: ANALYSIS AND FINDINGS.....................................................................................13
Chapter 5: CRITICAL APPRAISAL, RECOMMENDATION AND SUGGESTIONS..............20
Chapter 6: CONCLUSION............................................................................................................21
REFERENCES..............................................................................................................................22
Appendix........................................................................................................................................24

CHAPTER 1: INTRODUCTION
1.1 Project introduction
Distribution of non-alcoholic drinks with sweetened, flavoured, watered, carbonated
beverages makers, producers, distributors comes in soft drink industry. It is one of the most
developed industry. Organisation's in this industry need to bring changes in themselves in order
to gain competitive advantages and increase their customer base. This research project focusses
on all the factors that will affect brand loyalty in soft drink industry of UK and will focus on
comparative analysis of Coca-Cola and Pepsi. For this research project qualitative data analysis
will be done with the help of questionnaire.
1.2 Aim
To examine factors affecting brand loyalty in soft drink industry of UK: Comparative
analysis of Pepsi and Coca-Cola.
1.3 Objectives
 To examine the shopper inclinations for carbonated beverages in UK.
 To analyse the effect of brand on shopper inclinations.
 To examine the components influencing buyers mark steadfastness for soft beverages.
 To assess issues influencing brand dependability of customers.
1.4 Research Questions
 What is the effect of brand awareness on shopper needs and inclinations for carbonated
beverages?
 What are the components which influence mark dependability for Coca-Cola and Pepsi?
1.5 Approach and Methodology
For this research project inductive approach will be used. In this approach all the
identified aims, objectives and questions are needed to be achieved during the complete research
process. For this data analysis research project survey data collection method will be taken which
will be done with the help of questionnaires. This will be done by conducting a survey within 50
people.
1.6 Chapter preview
This research project will be covering 6 chapters which are:
Chapter 1: This is an introduction chapter which includes project introduction, aim, objectives,
questionnaires.

Chapter 2: This is a Literature Review chapter which includes literature review of complete
research project.
Chapter 3: This is a research methodology chapter which includes research design, approach,
philosophy, sampling, data collection and ethical considerations.
Chapter 4: This is a Data analysis and findings chapter which includes interpretation of all the
findings collected from questionnaire.
Chapter 5: This chapter includes critical appraisal, recommendations and suggestions.
Chapter 6: Last is a conclusion chapter which will conclude the complete research project.

CHAPTER 2: LITERATURE REVIEW
This is the chapter two of the complete research paper which provides the base to the
entire project by providing the view point of famous authors and analysing their view point in
depth and comparing it with others. This mainly helps in studying all the gaps in the study, attain
expected results, reach conclusion. This also helps in understanding the research topic and aim in
a better way. The details included in this chapter helps in accomplishing or attaining all the aim,
objectives as well as research question of this research project. This literature review will help in
understating all the factors that affects the brand loyalty in customers towards brand in soft drink
industry.
According to Alkaya and Demire, (2015), Today soft drink industry is one of the most
evolving market liked by many customers. This industry is continuously evolving according to
the culture and taste of consumers varying in different parts of world. Demand for soft drinks in
consumers is continuously growing and this is encouraging all the organizations in this industry
to continuously bring something new for their customers. In past 10 years many other
organizations has evolved and has brought different flavoured drinks in the market. There are
many types of soft drinks but the most popular soft drinks within the consumers are carbonated
beverages. Carbonated beverages are a kind of drinks that have additional added carbon dioxide
within them. Carbon dioxide is completely flavourless and colourless but when added in soft
drinks it increases the taste of those beverages. This carbonated beverages have their base either
soda water or carbonated water with added sweetener and flavour. Out of all the companies
carbonated drinks one of the most famous and strongest carbonated drinks are made by Pepsi.
They have recently made a drink which consist of five times more carbonation than other drinks.
Another company except Pepsi which makes one of the most carbonated drinks is Coca-Cola.
These two are world's top two soft drink companies to make strong carbonated drinks as
compared to others. According to UK's statistics market value of carbonated soft drinks has been
continuously increasing in last five years. In the view of Gibson et al., (2017) Value of
carbonated drinks has been continuously increasing year on year as however, consumption of
these carbonated drinks is uncertain. This uncertainty has increased the degree of challenges for
organizations in this industry due to the changing taste of consumers. Many companies are trying
to bring changes in their drinks by bringing innovation within their drinks according to the
changing taste of their customers. Many companies like Coca-Cola and Pepsi has accelerated as

well as changed their promotions and marketing strategies according to the consumers. It has
also been observed that many consumers becoming health conscious and are trying to avoid
carbonated drinks. However, there was a time till 1990's that carbonated beverages had built a
huge market position but that market position has slowly been declined. According to a survey
Coca-Cola has lost more than 40% of their market share in terms of consumption of carbonated
drinks in UK While Pepsi has lost 35% mof their market share in UK.
As per the view of Ma et al., (2016), today many shoppers' inclination towards
carbonated drinks has been decreasing as many of them are becoming aware and conscious about
their health as carbonated beverages consist of high acidic content which is not good for health
as well as for bones however, according to a research carbonated water do not have any effect on
body or bones. It is the added flavours etc. in beverages which is to be blamed. Many consumers
think that these carbonated drinks lead to risk of heart diseases, diabetes, liver damage etc. due to
this inclination of shoppers towards carbonated drinks has been continuously decreasing. This
study of inclination of shoppers towards carbonated beverages is a debate of study as this
carbonation in drinks increases its flavour and taste, so, many customers are inclined towards
such type of drinks whereas a good deal of health conscious customers prefer to avoid such type
of carbonated beverages. This change in taste of customers has forced the companies in this
industry to change and focus on their beverages product, their quality, ingredients as well as on
the changing marketing strategy of their products as this changing taste of customers has affected
the customer base of such companies.
As per the view of Iwamuro et al., (2018), effect of brands on shoppers' inclination is
moderate. According to a survey, Hashem et al., (2016), market share of Pepsi and Coca-Cola
has been continuously decreasing in terms of their carbonated beverages products. Even, though
many customers are becoming health conscious, they prefer branded drinks. According to a
newspaper article Coca-Cola is one of the most preferred carbonated beverage in the world and
second most preferred drink is Pepsi. Most of the customers believe what such big brands say
about their product in the advertisements. Customer loyalty in customers towards the brands is
getting disturbed due to the effects of carbonation in soft drinks. For this many companies are
trying to produce and manufacture diet and healthy soft drinks which has maintained the
customer loyalty towards the brand. There are various components that influence buyers loyalty
for soft drinks. Such as healthiness of soft drinks for customers, ingredients that soft drinks

consist of, quantity and quality these drinks consist of, availability of correct information
regarding those soft drink products for customers. Most of the customers tend to compare the
quality, quantity, price etc. of famous brands and this becomes the main reason that influence the
loyalty of customers for the brand.
In the view of White, Hobbs and Fernandez., (2015), there are various issues that influences the
brand dependability of customers. Buyers has their own perspective and it changes accordingly.
In soft drink industry shoppers perspective, taste etc. changes according to various factors such
as: price offered by their brand as well as their competitors brand, quality of the products of both
the brands, taste as well as the quality of the product, packaging of the product and most
importantly reputation of the product and the Organisation. If all these factors are considered
then first preference of Customers is Coca-Cola rather than Pepsi especially in UK.
Lastly, as per the above discussion it can be said that there are different factors that has
influences the loyalty of customers for brands like Pepsi and Coca-Cola. Continuous declining
market of carbonated beverages of Pepsi and coca-cola can be increased by changing the quality,
marketing strategies of their products. Like Pepsi has introduced a diet Pepsi carbonated
beverage which is much healthier than compared to other beverages. Market share and customers
loyalty of shoppers towards Coca-Cola has been decreasing as compared to other brands. There
are various other factors that has disturbed the brand loyalty of customers towards such famous
brands. In fact hindrance in customers' loyalty forces companies to bring innovation in their
products. According to a survey these two organizations are one of the most famous soft drink
players and has a huge market share as compared to others but if both the brands are compared
then people mostly prefer Coca-Cola as compared to Pepsi.

CHAPTER 3: RESEARCH METHODOLOGY
3.1 Research Design
Research design is a set of procedures and methods that are used for analysing and
collecting variable measures that are specified in the research problem. It can also be defined as a
framework of techniques and methods chosen by the researcher by combining various
components of the study. Research design can be grouped into two main parts which are: First is
exploratory and another is conclusive (Wiesche and et.al., 2017). Exploratory research aims to
explore main aspects of research area. It is mainly used to generate insight about the situation.
Data collection form of this is open ended, flexible with no set procedure. Data analysis in this is
informal as well as used for qualitative data analysis. While Conclusive research focusses on
describing main elements, phenomena and causes of the research. It has a specific purpose i.e. to
verify aid and insights in selecting a course of action. Data collection form is usually structured,
rigid and well laid out procedure. Data analysis in this is formal and is typically used in
quantitative data analysis.
For this research project exploratory research design will be used as it is a qualitative
research project.
3.2 Research Approach
Research approach is a procedure that consist of broad steps of data collection,
interpretation and analysis. It can mainly be divided into three types which are: deductive,
inductive and abduction research approach. Deductive research approach is used to test the
validity of assumptions or theories. In this data collection is used to evaluate the hypothesis
related to an existing theory. Inductive research approach is used emerge new theories and
generalization. Data collection in this is used to explore the phenomena, identify patterns and
themes as well as create conceptual work. Lastly, Abduction research approach is used and
started with puzzles or surprising facts and the research process that is devoted in the
explanation. In this generally premises are used to generate testable conclusions. Data collection
in this is used to identify patterns and themes, explore a phenomena and locate those themes in a
conceptual framework. All these is done with the help of subsequent data collection.
For this qualitative research project inductive research approach will be used.

3.3 Data Collection
Data collection is a process of collecting all the relevant information in order to find
answers to research questions and objectives, evaluate the outcomes and test the hypothesis. It is
mainly divided into two parts: primary data collection method and secondary data collection.
Primary data collection are those which are collected from surveys etc. from different persons or
sources etc. for the survey while secondary data collection is data collected from newspapers,
articles, online, portals etc. Primary data collection methods can be divided into which are
qualitative and quantitative research methods which are further divided into many.
For this research project primary data collection qualitative methods will be chosen
(Caillaud, Rose and Goepp., 2016). For primary data collection an online survey will be
conducted in the form of questionnaire. This questionnaire survey will be done in the form of
online survey.
3.4 Sampling
Sampling is a principle that is used to select members of population that are to be
included in the study. In simple words it is used to select the targeted large size of population for
the researcher to conduct research so that they can research to a specific conclusion. It helps in
many ways like it helps in making research size and type manageable, saves the overall cost of
the research, accelerate the overall speed of primary data collection and helps the researcher in
finding more accurate research findings. Sampling can be done in following steps such as: define
the target population, choose the sample frame, determine the size of the sample, select a specific
sample method and then apply the chosen sampling method in the research. There are mainly
two types of sampling, which are: probability and non-probability sampling. Probability
sampling is in which all the members of the population participate in the study. Non-probability
sampling is in which only few selected members of a group participate in the study.
For this research project probability sampling is chosen as all the selected members will
be participating in the questionnaire survey. For this probability sampling simple random
sampling method will be chosen out of other three probability sampling method as in this sample
group is selected in a random manner.
3.5 Data Analysis
Data analysis is a process of transforming, inspecting, cleansing and modelling data with
a goal of discovering useful informations, conclusions and well as it supports in decision making.

In simple words it is used to analyse all the primary data collected for the project. Data analysis
is of two types which are: qualitative and quantitative data analysis. In qualitative analysis a
common pattern is identified using respondents data by analysing it critically in order to achieve
aim and objectives. In quantitative data analysis critical interpretation and analysis of facts,
figures and numbers is done in order to find the rationale behind emergence of main findings
(Blom, Lange and Hess., 2017).
For this research project qualitative data analysis is done which is an analysis of non-
numeric data. This quantitative data analysis further can be done is many ways and out of all
those methods in this research project thematic analysis will be done.
3.6 Research limitations
It includes all the limitation faced by researcher in completion of this research project.
Such as:
 Formation of aim and objective was one of the main limitation as aim and objective
regarding this topic was way too broad and narrowing it down was a tough job.
 Choosing a sample size was tough because as a research too small data was quite
insufficient and collecting too large data was also not feasible so choosing a sample size
was tough. Considering all the ethical considerations was also a tough part of this
research project.