MKTG 2010 - Golden Circle: Marketing Research for Sugar-Free Drinks

This marketing research report investigates the feasibility of introducing sugar-free carbonated drinks by Golden Circle, an Australian food and beverage company. The research identifies the need for sugar-free options due to increasing health consciousness and declining sales of traditional sugary drinks. It addresses research questions related to consumer preferences, attitudes, and market trends in Australia. The research employs a quantitative approach using online surveys to gather data on consumer behavior, opinions, and attitudes towards soft drinks. A sample of 500 respondents across various demographic groups is targeted. The study aims to provide insights into the factors influencing purchase decisions and the potential for sugar-free drinks in the market. Desklib provides access to similar solved assignments and research papers for students.

Running head: MARKETING RESEARCH
Marketing research
Name of the Student:
Name of the University:
Author’s Note:

1MARKETING RESEARCH
Table of Contents
A brief overview of the product:.....................................................................................................2
Defining the problem of marketing research:..................................................................................2
Identification and clarification of information needs:.....................................................................2
Defining the research question:.......................................................................................................3
Specifying research objectives:.......................................................................................................4
Confirming the information value:..................................................................................................4
Research design:..............................................................................................................................5
Administration method including data collection form:..................................................................5
Data collection form:.......................................................................................................................6
Sampling technique:........................................................................................................................8
Main Ethical considerations:.........................................................................................................10
Potential limitations:......................................................................................................................10
Timeline:........................................................................................................................................11
Conclusion and recommendation for further research:.................................................................13
References list:...............................................................................................................................14

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A brief overview of the product:
The research is conducted for determining the feasibility of introduction of sugar free
carbonated drinks food and Beverage Company named Golden Circle based in Brisbane,
Australia. A wide range of soft drinks such as lemonade, golden pash, orange, creaming soda,
tropical crunch orange, lemon and lime is produced by Golden circle Consumption of soft drinks
is strongly linked with obesity and overweight. Drinking soft drink at higher level is associated
with consequences of ill health such as metallic syndrome, type 2 diabetes, dental care,
osteoporosis and displacement of healthier beverage and food options from diet. Introduction of
sugar free carbonated drink is a type of investment intended to be made by company for reducing
the consumption of soft drinks (Al-Mazyad et al., 2017). Nonetheless, the soft drinks produced
by company does not contain sugar free components that appeals to the growing health
consciousness consumers in country.
Defining the problem of marketing research:
Identification and clarification of information needs:
It is required to be determined by the company whether there exist the need for
introduction of sugar free carbonated drink for customers. There is a direct link between the
consumption of sugar and its related illness and increased obesity among consumers. It has also
been ascertained that increase in body weight of adults is due to increased consumption sugar
sweetened drinks. Such findings are implications for manufacturers such as Golden circle to
introduce sugar free carbonated drink in the market. The aim of the initiative taken for

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introducing sugar free carbonated drinks is to reduce the intake of excessive sugar among the
Australian population. Sales of carbonated drinks in region had reduced considerably in year
2014 and are expected to continue in year 2018 respectively. Because of growing advice of
doctors on the intake of sugars, the consumption of carbonated drinks seems to be regulated by
consumers. It is indicated by rising research that there are negative effects of consuming glucose,
sucrose and fructose. The recommendation for new product needs to be done conclusively by
conducting research on take of customers regarding the consumption of carbonated drinks.
Research intends to determine the market variable such as demographic variables,
attitude and customer preferences for sweetened or sugar free drinks and the inclination towards
purchasing new sugar free product. Therefore, research will mainly be focused on customer and
prioritized measure determination is required to be done as such measures are taken into account
by customers irrespective of sugar level, taste and price when buying soft drink from Golden
circle. In addition to this, it is required to explore the diversity of needs of customers regarding
their soft drink purchase. It is also required to determine how the demand of consumers to buy
sugar free drinks is stimulated by the several elements of marketing mix of retail.
Defining the research question:
Some of the research questions that have been formulated for addressing the need of
introducing sugar free carbonated drink are as follows:
What are the trend and patterns of regarding the consumption of soft drinks in Australia?
What are the preferences and intentional behavior of customers when buying sugar free
carbonated drinks?

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What are the preferences of customers when buying carbonated or sweetened drinks?
What is the current attitude of customers toward buying different flavors of soft drinks offered
by Golden Circle?
Information that is incorporated in the research would be regarding the behavior of
customers for the existing or available soft drink brands of Golden Circle in the market.
Responses of customers relating to the introduction of sugarless brand into the market have also
been accounted for (Franckle, 2016).
Specifying research objectives:
The main objective of research is to determine the requirement of introduction of sugar
free carbonated drinks in the market. Factors that is considered most influential on purchase
decision when buying carbonated drink are determined while researching for the viability of
introducing sugar free drinks. One of the key objectives of conducting research is to have an
understanding of the role of soft drinks among people and level of consumption among different
demographic groups (Zahniser et al., 2016). Research also takes into account how the
consumption habit of soft drinks has affected health across different groups of age. The recent
downtrend in soft drinks industry coincides with the focus of media around the implication of
health with excessive consumption of soft drinks with artificial sweeteners and high sugar
contents (Burns et al., 2014).
Confirming the information value:
An adequate amount of illumination will become apparent on the behavior of customers
regarding sugar free and softened drinks after engaging in research. In addition to this, some

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lights will also be thrown on reasons associated with reduced purchasing of range of soft drinks
offered by Golden Circle in the market. While working on product capitalization and
recommending on suggested brand is done by gathering the information regarding the reason for
customers to choose soft drinks offered by Golden circle as their preferred brand. Gathering
information on the flavors offered by customers would help in determining what type of soft
drinks offered by Golden circle results in generating optimum sales. Furthermore, adequate
recommendations would also be made by collecting collated information regarding the
purchasing intensions and attitude of customers toward considering the fact that consuming sugar
free drink is a healthy option.
Research design:
Research design is a plan that helps researcher in answering research related questions.
The approach of research design is quantitative and conducting survey analysis using the
structured questionnaires is the strategy employed in this research paper. In event of descriptive
research, questionnaires are best studied because a variety of relevant questions are asked in
relation to area such as characteristics, lifestyle, demographics, attitude, intentions, motivation
and awareness.
Questions are authoritative, economical and comparatively easy to explain and
understand and can be issued to any demographic group. Descriptive statistics helps in analysis
of such questions so that there can be interrogation between identified variables. The nature of
the study is explanatory and questionnaires helps in collecting three variables that is behavior,
opinions and attitude. Questionnaire designs are governed by the need to provide consistency by
enabling informal comparison of trend of consumption from previous year. A large sample will

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be researched across wide range of age by keeping the objective of research at the heart of
process of design.
Administration method including data collection form:
The method of collecting data was done by conducting survey and framing questions that
is web based. Online questionnaires help in achieving self completion and allow administration
at pace by simplifying functionality, offering clarity and being professional in their appearance.
Since the researcher did not have the resource and time to administer telephonic based or face to
face interviews. Researcher was able to maintain consistency in this particular study by using an
online questionnaire and it also used an online omnibus panel of 500 respondents. Questionnaires
were significantly different and expanded for meeting specific research objectives.
Questionnaires were first scripted in format of Microsoft word before it was produced
using an online survey tool. In order to avoid overly complicated or confusion related to
questionnaires, simple language and wording of questions are used. The survey comprised of
short sections by linking it with research objectives. Questions comprised of demographic
profiling that captures the age, gender, employment status, number of children living under age
18 and number of children living in household. All the questions framed are closed ended
offering independent alternatives.
Now, for understanding the attitude of respondents toward soft drink consumption, a
number of closed questions in the form of statement have been prepared. The statements are
rated by respondents in terms of strongly agreed and strongly disagreed using a five point Likert
scale (Zendeboodi et al., 2018). Some research objectives to which statements are related to

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brand loyalty, health and personal consumption. Purchasing of soft drinks could be impacted by
increased importance of health of individual and aging process.
Data collection form:
Gender ☐ Male ☐Female
Age group (years) ☐ 18 -34 ☐35-54 ☐55-74
Education ☐Up to High School ☐Diploma ☐Bachelor Degree
☐Master/Doctorate
How many people including you currently live in the household you live? ☐1-3☐ 3-6 6-9 9-12☐ ☐
What is your current employment status? Education ☐ Self employed
☐Full time ☐Part time ☐Student ☐Retired
Do you buy frizzy or carbonated drinks on frequently? SDD N A
4
SA
Do you buy smoothie or fruit juice drink of Golden circle brand? SDD N
3
A SA
Is health the reason associated with buying less frizzy and carbonated drinks? SDD N A
4
SA
Is lower price the reason associated with buying more squash or carbonated
drinks?
SDD N A SA
Determining attitude of customers toward soft drinks
A wide range of soft drink is purchased by me on regular basis SD D N
3
A S
Some other drinks such as alcohol and hot drinks over soft drinks SD D N A
4
S
I do not like the sweetness of some soft drinks offered by Golden circle SD D N
3
A S
Soft drink are harmless when drunk in moderation SD D N
3
A S
The coverage read and seen in the media around sugar and sweetened
drinks discourages from buying soft drinks
SD D N A
4
S

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3
Sampling technique:
Research design is underpinned by adaption, development and selection of an appropriate
theoretical framework which is a key element of research approach. It was found that the most
effective way of sampling opinions are questionnaire and validating the findings of enquiry by
eliciting required primary data (Zahniser et al., 2014). A sample group of between 300 to 350
people reflecting employment and status across wide age range is targeted. Approach of mono
method for gathering quantitative data and the conclusions drawn would help researcher to gain
an understanding of the consumption difference by age and ultimately plan for future.
The sampling technique that is deductive approach that helps in explaining casual
relationship between variables and concepts. Such approach involves theory development which
is subjected to test by series of proposition. Using quantitative measurements such as survey and
experiments and adaption and texting of existing hypothesis is allowed in deductive approach
(Mchiza et al., 2016). Using deductive approach has helped researcher in bringing consistency as
the same set of questions are answered by each respondents that helps in efficient collection of
responses from large sample. The difference in consumption of soft drinks can be tested and
quantified using existing studies and theories. Numerical data in large quantities is collected in a
standard way using deductive approach that helped in comparison and analysis of relationship
between key variables (Jithitikulchai & Andreyeva, 2018).
The sampling method is described using the following method:

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Target population identification:
The target population in this survey was both males and females within the age group of
18 to 74 that were divided into three sub groups. Age between 18 to 34 represents young age
group, age between 35-54 represents the middle age group and 55 to 74 represents the old age
group. Sampling units comprised of individuals residing in Australia. It was decided not to
conduct survey on people above 74 years because the questionnaire was to be self completed
online.
Sample frame determination:
The study employed a non probability approach compared to probability sampling
method due to budget and time constraints. Therefore, study did not incorporate using sampling
frame.
Sample procedure selection:
Study selected an approach of non probability sampling and such sampling procedure
was employed it helps in controlling elements because of population that is relatively
homogenous. In order to ensure an even split between number of females and males surveyed,
researcher used an element of quota sampling. Researcher used online survey tool named
Qualtrics that helped in monitoring levels of response of each group of quota. The approach of
volunteer sampling was adopted in order to build the sample (Babin & Zikmund, 2015).
Snowball sampling was the first sampling technique where participants took part in study by
volunteering. Researcher sent the hyperlink to contact friends and family that forms part of
respondents via mail. For completion, respondents were asked to send the link onto their own
personal contacts. Self selection sampling was the second technique and sampling was carried

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out at two different times by choosing sample from two different socio economic areas (Spence
& Wang, 2015).
Relevant sample size determination:
The target sample total included completed responses of 300-350 respondents by ensuing
that within each of different groups that have been identified, there are 50-80 consumers. For
safeguarding the reliability of statistics, there is an equal split of females and males.
Main Ethical considerations:
An appropriate ethical behavior is conformed under the study in relation to collection,
rights of participation, use and storage of data. It is also ensured by researcher that findings were
used in responsible and moral way. Respondents have participated based on informed consent
and data confidentiality’s have been adequately maintained. In addition to this, researcher has
avoided the biasness of findings of primary data representation.
Potential limitations:
 Using survey approach poses researcher with biggest challenge in terms of rigour and
quality of questionnaire design for collection of primary data. It is required to be done for
ensuring the validity and reliability of collected data and achieving strong response rate.
Limitations have also been dictated in research methodology due to resources, time and
financial restrictions.
 The employment of quota sampling was not representative nationally which is indicative
of the fact that data could not be weighed up to the overall population.

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 For online survey, the sample size was relatively small and valid results of survey were
produced by completing 310 surveys. However, the findings generated were less robust
compared to large sample when analyzing sets of specific question data.
 The length of questionnaires was too long that resulted in vast amount of data for
processing and analysis. Although this was not the case under the study as the accuracy
and completion was affected by respondent’s fatigue.
Timeline:
Main
Activities
1st Month 2nd Month 3rd Month 4th and
5thMonth
6th,
7thMonth
8th, 9th and
10th Month
Selecting
sugar free
carbonated
drink
Marketing
managers of
Golden circle
conducts
market
research for
introducing
this new
product in the