THE MARKETING OF SOFT DRINKS

(A Case Study of Chitwan District)

By
ANJANI POUDEL
Shanker Dev Campus
Campus Roll No.: 706/061
T.U. Regd. No.: 7-2-25-140-2001

A Thesis Submitted to:

Office of the Dean
Faculty of Management
Tribhuvan University

In partial fulfillment of the requirement for the degree of

Master of Business Studies (MBS)

Kathmandu, Nepal
February 2011
1
 RECOMMENDATION
This is to certify that the thesis

Submitted by:
ANJANI POUDEL

Entitled:
THE MARKETING OF SOFT DRINKS
(A Case Study of Chitwan District)

has been prepared as approved by this Department in the prescribed format of

the Faculty of Management. This thesis is forwarded for examination.

……...………..……………….. ........…………..……….….……… ……..………..………………….

Kailash P. Amatya Prof. Bishweshor Man Shrestha Prof. Dr. Kamal Deep Dhakal
(Thesis Supervisor) (Head, Research Department) (Campus Chief)

2
 VIVA-VOCE SHEET
We have conducted the viva –voce of the thesis presented

by:

ANJANI POUDEL

Entitled:
THE MARKETING OF SOFT DRINKS
(A Case Study of Chitwan District)

And found the thesis to be the original work of the student and written
according to the prescribed format. We recommend the thesis to be
accepted as partial fulfillment of the requirement for the degree of

Master of Business Studies (MBS)

Viva-Voce Committee

Head, Research Department …………………….………

Member (Thesis Supervisor) …………………….………

Member (External Expert) …………………….………

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 DECLARATION

I hereby declare that the work reported in this thesis entitled “The Marketing
of Soft Drinks (A Case Study of Chitwan District)” submitted to Office of
the Dean, Faculty of Management, Tribhuvan University, is my original work
done in the form of partial fulfillment of the requirement for the degree of
Master of Business Studies (MBS) under the supervision of Kailash P.
Amatya of Shanker Dev Campus, T.U.

……………………………………..
Anjani Poudel
Shanker Dev Campus
Campus Roll No.: 706/061
T.U. Regd. No.: 7-2-25-140-2001

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 ACKNOWLEDGEMENT

This thesis has been prepared as partial requirement for the Degree of Masters
in Business Studies. It would have been almost impossible to complete it
without cooperation and help of the people from different sectors.

I would like to express my sincere thanks and deep respect to honorable

lecturer Kailash P. Amatya of Shanker Dev Campus, Kathmandu for his
valuable suggestions and guidance. It was impossible to complete this study
without his inspiration and guidance.

I would also like to express my heartily thanks to my family members

especially my elder brother Mr. Nimesh Poudel and my friend Mr. Puspa Lama
whose regular inspiration and continuous contribution made me complete this
thesis.

Lastly, I would like to say that this research paper is my original work. I don’t
want to declare that this study is perfectly satisfactory and complete. There
may be limitations and short comings because of limited time and resources. I
hereby want to take the responsibility of all those.

Anjani Poudel

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 TABLE OF CONTENTS
Recommendation
Viva Voce Sheet
Declaration
Acknowledgement
Table of Contents
List of Tables
List of Figures
Abbreviations
Page No.
CHAPTER – I INTRODUCTION
1.1 Background of the Study 1
1.1.1 Marketing 3
1.1.2 Marketing System 3
1.1.3 Soft Drink in Nepal 4
1.2 Focus of the Study 6
1.3 Statement of the Problem 7
1.4 Objective of the Study 9
1.5 Hypothesis of Study 9
1.6 Importance of the Study 10
1.7 Limitation of the Study 11
1.8 Organization of the Study 11

CHAPTER – II REVIEW OF LITERATURE

2.1 Conceptual Review 13
2.1.1 Brand Preference or Brand Loyalty 14
2.1.2 Brand Switching 22
2.1.3 Brand Loyalty Models 24
2.1.4 Advertising and Product Positioning 27
2.1.5 Advertising and Brand Choice 32
2.1.6 Advertising Media 33

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2.2 Review of Related Studies 36
2.2.1 Review of Journals and Articles 36
2.2.2 Review of Thesis 40
2.3 Research Gap 49

CHAPTER – III RESEARCH METHODOLOGY

3.1 Research Design 50
3.2 Population and Sample 50
3.3 Data Collection Procedure 51
3.4 Source of Data 51
3.5 Data Processing and Analysis 52
3.6 Limitation of the Study 54

CHAPTER – IV DATA PRESENTATION AND ANALYSIS

4.1 Drinking Habit Sex Wise 55
4.2 Drinking Habit of Age Group 56
4.3 Family Status 57
4.4 Occupation Group 57
4.5 Over all Brand Preference of Consumers 58
4.6 Factors of Brand Choice 59
4.7 Patterns of Consumption of Soft Drinks 60
4.8 Taking Time for Buying Decision of Soft Drinks 61
4.9 Consumer Reaction in Absence of Preference Brands 62
4.10 Expect Thirst, Purpose of Buying Soft Drinks 62
4.11 Advertising Influence on Brand Decision 64
4.12 Media Recognition (Aware) Taste 64
4.13 Attractiveness of Advertising of Soft Drinks 65
4.14 Consumer Page Choice on Newspaper 66
4.15 Consumer Habit on Brand Switching 66
4.16 Reasons for Brand Switching 67

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4.17 Annual Sales and Delivery Management of Coca-Cola
Distributors in Chitwan 67
4.18 Annual Sales and the Delivery Management Pepsi-Cola from
Distributors in Chitwan 69
4.19 Annual Sales and Delivery Management of Real Juice in
Chitwan According to the Distributors 70
4.20 Annual Sales and Delivery Management of Frooti Juice in
Chitwan According to Frooti Distributors 71
4.21 Annual Sales of Delivery Management of Rio Juice in
Chitwan According to Rio Distributors 71
4.22 Text of Hypothesis 72
4.23 Major Findings 74

CHAPTER – V SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary 75
5.2 Conclusion 76
5.3 Recommendations 77

Bibliography
Annexure

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 LIST OF TABLES

Table No. Title Page No.

2.1 Consumers brand beliefs about Computer 25
4.1 Drinking Habit of Sex Wise 55
4.2 Drinking Habit of Age Group 56
4.3 Drinking habit of Family Status 57
4.4 Drinking habit of Occupation Group 57
4.5 Overall Brand Preference of Consumers 58
4.6 Factors of Brand Choice 59
4.7 Consumption Patterns of Soft Drinks 60
4.8 Taking time for Buying Decision 61
4.9 Consumer reaction in absence of Preference Brand 62
4.10 Purpose of buying except Thirst 63
4.11 Advertising Influence on Brand Decision 64
4.12 Media recognition (aware) Test 64
4.13 The Advertisement Attractiveness Test 65
4.14 Consumers page choice with respect to Newspaper 66
4.15 Consumer Habit on Brand Switching 66
4.16 Reason for Switching 67

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 LIST OF FIGURES

Figure No. Title Page No.

4.1 Pie chart, Consumers Brands Preference of Soft Drinks 59
4.2 Factors of Brand Choice 60
4.3 Pie chart taking time for Buying Decision 61
4.4 Purpose of Buying Expect Thirst 63
4.5 Media Recognition (Aware) Test 65

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 ABBREVIATIONS

% : Percentage
& : And
Co. : Company
DS : Departmental Store
E- : Electronic
e.g. : Example
i.e. : That is
IBM : International Business Machine Corporation
MS. DOS : Microsoft Disk Operating System
No. : Number
T.U. : Tribhuvan University
U.K : United Kingdom
USA : United State of America
www : World Wide Web

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 CHAPTER - I
INTRODUCTION

1.1 Background of the Study

Nepal, officially the Federal Democratic Republic of Nepal, is a landlocked
country in South Asia and, as of 2010, the world's most recent nation to
become a republic. It is bordered to the north by the People's Republic of
China, and to the south, east, and west by the Republic of India.
With an area of 147,181 square kilometers (56,827 sq mi) and a population of
approximately 30 million, Nepal is the world's 93rd largest Country by land
mass and the 41st most populous country.

Short Description of Chitwan

Chitwan is the central part of Nepal. It’s far from 146 Km from Kathmandu
vally, capital of Nepal. In total figure of Nepal, Chitwan district covers 1.52%
area. According to Local Resource Mapping Project (LRMP), the area of
Chitwan district is 2205.90 sq Km. Royal National park is covered 908.79 sq
Km area. Instead of that area, 1329.60 sq km sq km division at 36 village
development and 2 Municipalit. Chitwan district is famous for agriculture
sectors. In total area of land, 26% sq km or 547 sq km area is suitable for
agriculture but now 445.94 sq km land is used in agriculture. In total, suit for
agriculture land only 53.24% got irrigation facilities.

Most of land covers plains area. Thus Chitwan is also called middle of tarai
region. Chitwan is famous for agricultural sector because of moisture of soil
and fertile land Chitwan is famous for cultivation of different crops such as
Wheat, Mazie , Mustrad, Paddy and different kinds of Green vegetable. It is
also famous for milk [from animal husbandry], poultry framing and developing
stage in bee keeping.

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Total population of Chitwan : 470713
Male : 237669
Female : 233044
Growth Rate : 2.84
(Source: Brance Office, Population Data Collection of Chitwan)

Education Male : 65.57%

Education Female : 40%
(Source: Education of District Office, Chitwan)

Geographical of Chitwan
Chitwan district is located at central part of Northern side-Himanchal Pradesh,
western side- chure hill, Southern side-of Chitwan valley is narrowing and
Eastern part of Chitwan spreading plain land. Chitwan valley has one another
small valley which is called Madi.

Northern 20021” to 27046”

Southern 83035” to 84048”
South to East Length - 98km
North to West Breath - 46km
Sea Level Height - 305m to 1945m
Bharatpur Height - 208m
Narayangarh Height - 192m

Political and Geographical Distribution

36 village development organization - 122,712
2 Municipalities - 10248
National Park - 90879
Plan Area - 86735
Hill Area - 46225

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1.1.1 Marketing
Marketing can be defined in a simple manner as the activities done by the
company to deliver the product from the place of production to the place of
consumption. It means that marketing is a process of the transfer of the
ownership of the product in exchange of something of value.

“The performance of business activities that direct flow of goods and services
from the producer to consumer” (American Marketing Association, 1995).

“Marketing is a social and managerial process by which individuals and group

obtain what they need and want through creating, offering and exchanging
products of value with others” (Kotler, 1997: 9).

“Marketing is defined as total system of business activities designed to plan

Price, promote and distribute want- satisfying goods and service to present and
potential customer” (Stanton, 1981: 9-10).

It can be conclude that marketing is a process of delivering goods and services

product to satisfy the needs of consumers to the consumer in an effective way
so the objectives of the produces are fulfilled. Marketing, thus, satisfies the
objectives of the producers by making it possible to sell their product on the
market in one hand on the other hand helps consumers to get the maximum of
satisfaction by providing goods and services for their consumption.

1.1.2 Marketing System

The concept of the marketing system is given by the system approach to
marketing based upon the work K.D. Koirala (Koirala, 1992: 11).

The marketing system consists of two interacting elements, the marketing

organization and its target market. Defined in o broader way, the interacting or
independent group of items include the;
 Organization doing the marketing job.

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  Product, service, idea or person being marketing.
 Target market.
 Intermediaries helping in exchange between the marketing organization
and its market.
(Like Retailer, wholesalers, transportation agencies, and financial
institution)
 Environmental constraints; demographic factor, economic condition,
social and cultural forces, political and legal forces, technology and
competition”

1.1.3 Soft Drink in Nepal

The world wide, now a day soft drinks is the parts of human necessity of
anywhere and consumer wants to choice their best drink to fulfill their
satisfaction paying their cost.

In Nepal there are limited soft drink Product Company which are using by
consumer such as;

Soft drink Company: Brand Name

- Bottlers Nepal, (Ptv, Ltd) MDF Baratpur, Tarai, (Coca-Cola, Fanta, Sprite)
& Balaju, Kathmandu, Nepal. (Collaboation- U.S.A.)
- Varun Beverages. (Ptv,Ltd) MDF; (Pepsi-Cola, Merinda, 7-up)
Sina Mangal, Koteswor , Kathmandu, Nepal, (Collaboation-U.S.A.)
- Parle agro. (Dugard food & beverage. Ptv,Ltd) (Frooti-Juice)
Satungal, Kathmandu, Nepal. (Collaboation-India.)
- Dabur Nepal. (Ptv,Ltd) Rampur, Tokani, Bara District (Real-Juice)
Birjung,Nepal. (Collaboation-India.)
- Other Juice (Rio Juice, Durk, Jolly, etc)

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Every producer of soft drinks want their product markets sells on high ranks
then their competitors but it's all depends upon consumer behavior. In this
modern Marketing era, consumer behavior is an integral part of Marketing.
Ever marketer should understand consumer’s need’s, and satisfying which
create the behavior of consumers. Consumers satisfaction depend upon the
degree of satisfying various categories of needs such as stated needs, unstated
needs, real needs, secrets needs, delighted needs, consumer satisfaction can be
referred as the different between consumers spent for what he/she gets. What
he/she gets is the utility derived from the product or service he/she bears in
course of deriving expected utility or value.

Marketers, there, fore, must have to study and analyze consumer’s behavior so
that, they will be able to exploits the prevailing opportunities and shoulder the
threats and challenges. In course of that, they have to find out behavioral
conduct of consumers that they show during pre-buying phase, buying phase
and post-buying phase, keeping all these into consideration, consumers
behavior can be understood as acquiring, using and disposing of products and
services.

Consumers may be individual persons or organization. Consumer determines

the design of the marketing mix and program for every organization. The
organization changes its marketing mix and program according to the needs of
the target consumers. An organization customer may be consumers, who buy
product and service for personal or family use or other purpose. The different
types of consumers show different characteristics and need different marketing
approaches.

Buying behavior is the process and act of people involved in buying and using
products. Thus, consumer behavior refers to the buying behavior of ultimate
consumer those people who purchase products for personal or household use.

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Consumer’s behavior is the subject of human behavior focusing on the buying
expression.

Consumer behavior, as the study of the decision making units and processes
involved in acquiring consumers and disposing of goods, service, experience
and idea (J. C. Mowen, 1997: 2).

In earlier times marketers could understand consumer through the daily

experience of selling to them. But the growth in the size of the firm and
markets removed many marketing decision makers from direct contact with
consumers. Consumer’s behavior encompasses all the activities of individuals
that involve buying and using products, including the decision process that
precede determine these acts.

1.9 Focus of the Study

This study behind modern marketing through the consumers satisfaction of
product and service. Every marketer should understand consumer satisfaction
which creates by behavior of consumers. In an modern era, cut throat
competition successful marketing of the product demands through understand
of consumers taste, choice, preference, loyalty, consumers behavior (Panta,
1993).

Consumers spent for what he/she gets. What he/she gets is the utility derived
from the product or service he/she uses.

Consumer’s behavior is the main elements which plays major role in buying
decision system with the study of consumer’s purchase behavior on the basis of
brand loyalty of cold drink we can easily analysis. “Why do the consumer’s
demand that product? And why they do not demand another similar product?
So the consumer’s satisfaction is a derived marketing goals the modern
business. In the views of modern marketing, consumers is the" King" in

17
purchase decision of different products on the basis of brand loyalty.
(Lamichhane, 1996). After study of consumer behavior marketers could easily
find out the result of the following problem as:-
1. Who buys?
2. Which product do they demand more? And also purchase?
3. When do they purchase?
4. How do they Purchase?

For the result of those given question these should be study about the consumer
to identify the consumer’s behavior on different products on the basis of brand
loyalty.

As the focus of this study of “Marketing of soft drink” a temporal aspect of

consumer behavior of the manufacturer’s marketers will be highly benefited by
this study. They may use their marketing strategies for marketing of their
products so that to turn in their favor.

1.10 Statement of the Problem

The use of soft drinks (e.g. Coke, Pepsi, Fruit, Real Juice and other Juice etc.)
is increasing in Nepal as in other countries. Its one reason is that the density of
population has been creating hot and the other is that different types of
attractive advertisements so that which can easily attract the consumers. The
main advertising media in Nepal are Radio, Fm, TV, Newspaper, Magazine,
Wall painting, Holding board, etc. In television many sports man, actors and
actress, singers also modeling such company drinks, so consumer of cold
drinks diversify hither and thither brands of soft drinks. On the other hand
some time company gives praise their brand drinks after all “Consumption” has
also been increasing in consumers from those soft drinks which one brand is
fulfilling the demand of consumers? And are the brands of soft drinks equally
demand by the consumers?

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From the result of the above questions it is really great problem to say any one
without study about Cold soft drinks. It creates problem for the potential
consumers to choose Cold soft drink of each favorite brand. The field of
consumer behavior holds great interest as marketers and researches the
consumer is often to describe two different kinds of consuming entities, these
two are personal consumer and organization consumer.

It is also difficult for the researchers to identify the estimate sales in the target
market. This, although the markets of Cold soft drink are increasing and also
one of the important sources to increase the national income, there has not been
made yet the specific study of soft drinks, it is very difficult to know outcome
actual consumer and also who are interested to know the result of the following
problem.
 What is the purchase behavior of consumer and who purchase soft drinks?
 What is the choice of consumer on soft drinks?
 How consumers build up brand preference and which factors influence
such preference?

The answers are often highly variable, according to the all circumstance and
situation of individual consumer at a time. Here the studied is related consumer
behavior of soft drinks aims to find out above behavioral patterns. Such
problem faced on consumer behavior about soft drinks as shown below;
 How consumers build up brand preference and which factors influence
such Preference?
 Does the advertising contribute to protect product positioning?
 Which is the popular media of advertising of soft drink?
 What is the consumption pattern of soft drinks in Chitwan?
 Which is the best design of market segmentation of Chitwan?
 Which company covered the more market share in the Chitwan according
to consumer’s views?

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1.11Objective of the study
Faced with above problems, this study is conducted with the following
objective.
 To examine the potential consumer to purchase soft drink.
 To estimate demand of soft drink in Chitwan.
 To identify the purchase behavior of consumers who purchase soft drinks.
 To find the relationship between the brand preference and advertising.
 To evaluate the role of advertising in product positioning from the
consumer’s perspective.
 To ascertain the market leader of soft drinks in Chitwan District
consumer’s point of view.
 To provide suitable suggestion.
 To estimate sales of soft drinks in Chitwan district and it market
segmentation.

1.12 Hypothesis of study

Hypothesis 1:
Ho: Soft Drinks were distributed in an equal no. of male and female.
H1: Soft Drinks were not distributed in an equal no. of male and female.

Hypothesis 2:
Ho: Soft Drinks were distributed in an equal no. of age of group.
H1: Soft Drinks were not distributed in an equal no. of age of group.

Hypothesis 3:
Ho: Soft Drinks were distributed in an equal no. of family status.
H1: Soft Drinks were not distributed in an equal no. of family status.

Hypothesis 4:
Ho: Soft Drinks were distributed in an equal no. of different occupation.
H1: Soft Drinks were not distributed in an equal no. of different occupation.
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Hypothesis 5:
Ho: Brand makes not effective for use of Soft drinks.
H1: Brand makes effective for use of Soft drinks.

Hypothesis 6:
Ho: Advertisement is not effective for use of Soft drinks.
H1: Advertisement effective for use of Soft drinks.

1.13 Importance of the Study

There is no question that marketing plays an essential role in our economy. In
its most basic from, the marketing process identified unfulfilled, unsatisfied
human needs, and develops and delivers products and services designed to
satisfy those needs in way that satisfy organizational and societal objective,
people of Nepal contrary to the people of developed countries, perceive Cold
Soft drink as a drink to be used in the not season only that’s why demand of
Cold drink in Nepal comparatively goes high in the hot seasons?

So the knowledge of the motives behind purchase behavior of consumers on

Cold drink is believed to be especially helpful to the marketers who are related
with Cold soft drinks there are a number of dealer (retailer) in Chitwan district
who sell different Cold soft drinks for a marketer of any consumer goods, it is
also help to formulate appropriate marketing strategies and such marketing
strategies may relate to segmentation of markets based on motives of purchase
behavior on Cold soft drinks, the finding of the study would be great help to
marketers, produces, distributors, retailers and as well as consumer, because the
complex and competitive Nepales market, marketer are facing the problem of
not getting target markets share, so Chitwan also one of the major cities of
Nepal. If we study or survey of “Marketing of Cold soft drinks in Chitwan ”
then we can easily get the estimate data of demanding of Cold soft drinks of all
the parts of terai region. Thus although study of soft drinks is important instead

21
of Cold soft drinks studies about consumer’s purchase behavior with reference
to help other goods marketing ( e.g. noodles, soap, electrical goods etc)

Therefore the finding this study would be of great help to government’s

municipality, social, marketers, producers, distributors, retailers as well as
consumers.

1.14 Limitation of the Study

This study has been made taking time and other constraints in to consideration.
A short period of study essentially confines its scope to Cold soft drinks
[mainly soft drinks brands Coca-Cola, Pepsi Cola, Frooti, Real juice and
others.] have been include as demands. Which are seen used by consumers in
Chitwan district, therefore the finding of this study is based on the analysis of
few Cold soft drinks brands. This study is entirely based on the brands on the
consumer’s response, reaction, attitude and purchase pattern relating to the
brands of the products selected for the study. Similarly, the consumer’s
purchasing pattern and market structure characteristics such as consumer’s sex,
age, family status and profession etc. are also taken into account and studied so
as to find out whether or not they correlate with brand loyalty.

1.15 Organization of the Study

The study is organized into five chapters.

Chapter I: Introduction
Introduction chapter is related to introductory part of the study. On this chapter
background of the study, statement of the problem, objective of the study,
signification of the study, limitation of the study and organization of the study
are included.

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Chapter II: Review of literature
This chapter deals with the reviews of the existing literature in the relevant
areas and includes specially consumers behavior related literature and
theoretical framework of consumer behavior in soft drinks is review in this
chapter.

Chapter III: Research Methodology

This chapter is related to research methodology. In this chapter include and
describe the research design, sources and procedures of data collection.

Chapter IV: Presentation and Analysis of Data

This chapter deals with systematic presentation and analysis of data. Collected
data from different sources are presented appropriate manner. This includes
data collection, data tabulated and presentation of data through different
financial and statistical techniques.

Chapter V: Summary, Conclusion and Recommendation

This chapter related to summary of whole study, conclusion and required
recommendation also will be mentioned and several directions for future
research will be offered in this chapter, which is related to consumer behavior
in Nepal.

At the end of the study selected reference or bibliography and related

appendices have also been incorporated.

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 CHAPTER - II
REVIEW OF LITERATURE

Review of literature means stock taking of available literature in one’s field of

research. By reviewing of literature we get or collect the more information or
knowledge about their researches. The previous study may be base on help to
face a new problem and provide the foundation to the present study.

Study of consumers behavior has, now been prevailed as an effective measure

helping to develop the marketing strategy. On growing need and demands of
consumer’s previous studies additional information about a particular subject
or area, demand enthusiastic and pious efforts from those engaged in such an
activity. Thus attempts are made by researchers to bring truth newness in
application of found out facts by presenting their own logics and normalized
the problems. Thus once pursued research doesn't remain static’s in an
implementation for a longer periods because their periodic changes in
environmental factors, periodic changes of vision, ideology, philosophy,
principles, strategies etc; It seem this need to be studied from time to time.

For the study purpose, literature has been reviewed in term of:
2.1Conceptual Review
2.2 Review of Related Studies
2.2.1 Review of Journals and Articles
2.2.2 Review of Thesis
2.3 Research Gap

2.1 Conceptual Review

 Brand preference or Brand loyalty
 Brand Switching
 Brand loyalty models
 Advertising and products positioning

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  Advertising and brand choice
 Media of advertising

2.1.1 Brand Preference or Brand Loyalty

Every person makes numerous decisions concerning every aspect of product
use of daily lives. In the market different brands which are use for same
product gives difference satisfactions. However, we generally makes these
decisions at shorten time without any think about, we make them and what is
involved in the particular decision making buying process its self. Consumers
take decisions according to their intention towards the particular brands. The
market consists of all the potential consumers sharing of particular need or
wants who might be willing and able to engage in exchange to satisfy that need
or want. Consumer and buyer behavior is the processes where they buy
individuals decide. Whether, what, when, where, how and from whom to
purchase goods and services. Consumers are satisfied with brands when they
realized their value.

The consumer’s satisfaction and an organization as a management orientation

that holds the key task of the organization is to determine the needs and wants
of target market and to adopt the organization to delivering the designed
satisfactions more effectively and efficiently than its competition (Kotler,
1997: 500). Every organization to be sensible towards the consumers
satisfaction their needs and wants. Buy delivery the goods quality product and
providing the product related information to the consumer.

Brand loyalty analyses whether a not a consumer is a loyal to a specific brand

or set of brands in certain time period. Studies on brand loyalty began when
researches on consumer behavior became popular around the late 50s and early
60s. Now days most of the products sold strongly force on brands (Engel and
Blackwell, 1982: 565).

25
“Today, branding is such a strong force that hardly any thing goes unbranded.
Salt is packaged in distinctive manufacture’s containers, wages are stamped
with grower’s names and common nuts and bolts are packaged in cellophane
with a distributor’s label and auto mobile components- spark plugs, tires,
filters bears separate brand names from the auto markers, Fresh food products
such as chicken, turkey and salmon are increasingly beings sold under strongly
a advertised brand names” (Kotler, 1996: 447).

This increasing use of brand has significantly increased the necessity to

understand, the brand loyalty behavior of consumer. Marketers are concerned
with actual consumer purchasing patterns. Consumer emphasis the certain
brand according to their beliefs, branding gives the seller the opportunity to
attract a loyal and profitable set of consumers. Brand loyalty also gives the
seller some protection from competition and greater control in planning their
marketing program. So, manufacture or retailer may take years and send
millions to develop consumer’s preference for their brands. Different experts,
scholars, have defined about brand loyalty in different ways and have
expressed different approaches and criteria to measure about brand loyalty.

“According to Schiff Man and Kanuk, “Just as there are different approaches
to the definition and measurement of information processing, so, to there are
different views as to definition of brand loyalty” (Schiff Man and Kanuk,
1900:258).

Some have defined brand loyalty in term of consumer behavior and some
others have in terms of both consumer behavior and consumer attitude.
Different researches are based on brand loyalty and have been used much
necessary to pay attention towards the research.

Which are about brand? James F. Engel and Roger D. Blackwell explained
“One of earliest studies defined Brand loyalty according to the sequence or

26
purchasing a specific Brand”. This definition classified brand Loyalty in four
categories (Engle and Blackwell, 1982: 566).
1. Undivided loyalty (Truly loyal)
2. Divided loyalty (Multi brand Loyal)
3. Unstable loyalty (Shifting loyal)
4. No loyalty (Switcher)

1. Undivided Loyalty
Consumer who buys only one brand all time. The purchase patterns of “A”
which represent a consumer with undivided loyalty to brand “A”.

2. Divided Loyalty
Consumers who are buy two or three brand. This buying patterns AA, BB, AB
which represent a consumer with a divided loyalty between A and B.

3. Unstable Loyalty
Consumers who shift favoring brand to another similarity brand the purchase
patterns of AAA, BBB purchase.

4. No Loyalty
Consumers who show no loyalty to any brands. The purchase patterns A, C, D,
E, and B. thus no loyal consumers either deal regular or irregular.

According to this definition branded choice purchases of consumer pattern is

the criteria that measure by brand loyalty. By using this definition, George
Brown analyzed the purchase records of 100 house hold in Chicago tribune
panel for such frequently.

Purchase different items such as coffee, orange juice, soap and margarine and
found that the percentage of household demonstrating some degree of loyalty
varied from 54 to 95 percent depending on the product involved. In fact the

27
percentage of house holds undividedly loyal varied from 12% to 73% in
accordance with products. From this study it is obvious that brand loyalty does
exist and varies accordance with products. The contribution made by this study
for development of concept of brand loyalty is considered significant (George,
1999:29).

In the study of brand Choice Pattern approach to brand loyalty, Philip Kotler
expresses the example according to brand loyalty Low Cos. The Canadian
Supper market Chain, is increasing the number of its house brand. Lob low
now sells the leading cookie brand in Canada, its president’s choice Decant
Chocolate Chip cookie which tastes better and costs less than Nabisco's chip
Ahoy brand. It has captured 14% of the market, mostly from Nabisco. Low
also introduced its private level Cola, called presidents choice cola, which
racked up 50% of Lob law’s canned Cola sales (Kotler, 1996:450).

In place of brand-Choice sequence Leaster Guest used preference statement

overtime as a measure of brand loyalty in his study carried out in 1941. In
1941 he collected data concerning the brand awareness and preferences of
student in follow-up studies of theses same person 12 and 20 years later he
found suggestive evidence of high degree of loyalty towards names (although
not to specific brands). What comes form the Leaster Guest is that brand
loyalty exists even when it is defined as preference statement over time.
Guest’s finding of suggestive evidence of high degree of loyalty toward brand
names give more weight to the need of under standing brand loyalty is
measured on the basis of preference on the basis of preference expressed by
the consumers to a particular brand over a certain time”. But preference
statement alone is not real representative of brand loyalty. What the consumers
do in the actual purchase is of importance together, which they prefer (Guest,
Journal Applied Psychology: Vol-4).

28
James F. Engle and D. Black well defied “Brand loyalty is the proportion of
total purchase with in a given product category devoted to the most frequently
purchase brand (or set of brand)”. This definition employs proportion of
purchase as the measure of brand loyalty. In the words, according to this
definition of total purchase with in given product category to the most
frequently purchase brand (or set of brand) the greater the proportion of
purchase brand, the greater the proportion of purchase a brand or set of brand,
the higher the loyalty (Engle and Blackwell, 1982: 567)

The major advantage or proportion of purchase as a measure of brand loyalty is

that is proportion of purchase is quantifiable and, therefore, is useful in a wide
variety of mathematic models. The followers of purchase definition of brand
loyalty have used it both as a conceptual as well operational definition. Using
this definition of brand loyalty Cunningham developed the concept of multi-
brand loyalty in various forms such as dual brand loyalty, triple brand loyalty,
and so on.

“Blat berg and Sen have extended the proportion of purchase approach to
segment that are loyal to national or private brand as a category as well as
specific brand with in each of those categories. One segment of the population
they found to be “high national brand loyal” and found that the proportion of
purchase devoted to the favorite brand ranged from about 80% to 100% within
this segment (Engle and Blackwell, 1982: 568).

According to Jacoby brand loyalty is the biased, behavioral response, expressed

over time, by some decision-making unit, with respect to one or more
alternatives out of a set of such brand and a function of psychological process
(Jacoby and Chest Man, 1978: 571).

The theme of Jacoby’s definition is that brand loyalty should be measured in

terms of the both consumer purchase and consumer preference brand loyalty is

29
purchase behavior of a decision making unit. Such a behavior is based on
psychological processes and is biased for one or more brands for a specific
time period. Jacoby’s definition is quite able to distinguish between a true loyal
buyer and spurious loyal buyer. Evaluation of consumer purchase explain
which specific brands or set of brand a consumer purchase repeatedly where as
the evaluation of consumer preference answers why repeat purchase of that
brand or brands. He/She may buy the same brand or brands due to many factors
such as psychological commitment, ignorance if the other alternative brands.
Which is unavailability of other alternatives brand at the store, and many other
factors too, it is necessary to know which factors is contribution to loyalty.

Another important aspect Jacoby’s definition is that is recognizes the existence

of multi brand loyalty. When we speak of brand loyalty, we concentrate out
mind especially on a specific brand. We think that brand loyalty is the
consumer’s loyalty to a specific brand. But reality is rather different. Brand
loyalty means loyalty to one or more brands that the consumer repeatedly
brands of the given products category.

The spurious loyal buyers lack any attachment to attribute, and they can be
immediately captured by another brand that offers a better deal, a coupon, or
enhanced point of purchase visibilities through display and other devices.
Brand loyalty is some thing more than repeat purchase.

Researchers have not only defined what is brand loyalty? But have also
endeavored to find out how it’s develops (i.e. brand loyalty develops)

“How does brand loyalty develop”? Has occupied an important place in the
literature on the brand loyalty. However, the Researches have not the same
attitude towards the development of brand loyalty. Likewise on definition the
researches have different views on how loyalty develops [Schiff and Kanu,
1999: 260).

30
Behavioral Scientists who favor the theory of instrumental conditioning believe
than brand loyalty result from an initial products trial that is reinforced through
satisfaction leading to repeat purchase. Consumers purchase a particular brand
as a trial and if this trial can satisfy his need for what he purchases the product,
make him repeat the purchase of the same brand.

On the other hand, cognitive researchers emphasize the role of mental process
in building brand loyalty. They believe that consumers engage in extensive
problem solving behavior involving brand and attribute comparison leading to
a strong brand preference and repeat purchase the behavior. In other words,
brand loyal is an outcome of mental process of the consumer. The consumers
are not loyal to a brand simply because the brand satisfies their needs. They are
loyal to a specific brand or a set of brands because they have developed a
positive attitude toward that brand or brands. Such an attitude is developed
through a decision making process.

Once brand loyalty is established, the treat from other brand is considerably
less than inego involving products. Brand loyalty is the best way of marketing
system. If the consumers are identifiable as loyal and market can accordingly
be segmented as loyal consumer market and non- loyal consumer market and
separate market strategy can be used for each.

The process or allocation of basis demand to competition brands in corporate

number of realistic phenomena. For example the demand for particular brands
comes from sources. The initial component represents habitual brand loyalty.
The remaining demand comes from what is termed the potential shifter
demands.

According George P. Moschis, Royl and Thomas J. Stanely. “Studies on brand

loyalty have also tried to find out when brand loyalty develops. The research

31
evidence suggests that a great deal of brand loyalty develops quite early in life
with in the context of family life” (George, Moschis and Thomas, 1999: 412-
417).

Schiffman and Kanuk presented the explanation of Royl, Moor and Lownds F.
Stephens, One study comparing middle-school children with high-school
students found that both groups scored high on the ability to express brand
preferences, but that the older group had significantly more brand preference.
(Schiffman and Kanuk, 1990: 259).

Thus the researches reveal that the brand loyalty develops early in the life of a
person and such loyalty has a long lasting effect on the whole life of the person.
However this may not be true for all the persons. The modern world is very fast
change. Most of the persons who are keeping pace with this world are supposed
to change their behavior time by time. The different factors in the environment
in which they live, have no inexorable impact on their behavior. Hence, it is not
hundred percent correct that the impact of brand loyalty developed at a certain
stage of life can be seen even throughout the rest of the life.

Thus the studies on brand loyalty have analyzed what, how and when brand
loyalty, and have presented it special phenomenon for scientific analysis and
prediction, Brand loyalty is the image of good preference and choice. Brand
loyalty has many marketing implication consumer who loyal to the certain
brands are valuable assets and the agency for finance to manufactures.
Brand loyal consumers also perform to function of advertising and sales
promotion.

Manufacture always like to know about market captured by each brand, which
product is comparison profitable to produce. Which market area is better and
worse and how much should be produced. In the sense of vision the brand

32
loyalty is a major role to make a production plan and employ control
mechanism to avoid any future absurdities.

Thus knowledge of brand loyalty has been proved an important as well as a

successful marketing strategy. That’s why the experts suggest, “Brand
switching and Brand loyalty studies should be made on a continuous basis”.
(Green and Tull, 1960: 92).

In short, knowledge of brand loyalty makes the manufacture aware of probable

progress and gives warning to take suitable action to avoid any adverse
situation likely to prevail in the future.

2.1.2 Brand Switching

As the names implies, brand switching means consumer’s habit of constantly
shifting from one brand to another. In this sense brand switching is opposite to
brand loyalty. A brand loyal consumer is stacked up to a specific brand or a set
of brands. The buyer who is habitual to brand switching is loyal to no brand.
Understanding of why consumers are involved in brand switching is very
important for complete understanding of brand loyalty behavior. Because why
consumers switch brand explains. Why consumer are not brand loyal.

According Philip Kotler of brand switching behavior, “Some consumers are

often observed to do a lot of brand switching. An example occurs in purchasing
cookies; the consumer has some beliefs, chooses a brand of cookies without
much evaluation, and evaluates it during consumption. But next time, the
consumer may reach for another brand out of boredom or a wish for a different
taste. So brand switching is needed for the sake of variety rather than
dissatisfaction” (Kotler, 1996: 192).
Leigh Mc Aliester and Pessimier, says “It is not unusual to switch brands
simply because of variety seeking” (McAliester and Pessimier, 1990:31).

33
“Some consumers switch brand because they are dissatisfied or bored with a
product others because they are concerned with price than with brand names”.
A consumer having been loyal to a brand for long time may switch to another
brand because of being dissatisfied of being bored with the brand he has been
using for long time. Similarly, if the consumer is more price conscious than
brand then even a light price-cut in the competitive brands may him move
toward those brands (Schiffman and Leslielagon, 1999:260)

But the research studies on brand switching reveal that brand switching is not
very much stronger as it is generally through. In other words, brand switching
is not very much threatening to the manufactures. A recent study on consumer
purchase habits reported that brand with longer shares have proportionately
lager groups of loyal buyer, another study reported that contrary to many
marketer beliefs, and brand loyalty is not decline significantly. The slight
decline that has been measured appears to be due to an increase by marketers in
sale promotion (e.g. special price deals, coupons, sweepstakes and free sample
etc.) at the expenses of advertising and greater consumer awareness of price
more comparative advertising and more targeting to hard specially niches.

Thus it follows that some interpersonal factors such as dissatisfaction,

boredom, price consciousness and aspiration for testing new brands cause
brand switch. Similarly, also some external factors like special, price deals,
coupons, sweepstakes, free samples and comparative advertising etc. may
cause brand switch, but what the researches show is that, such a brand switch
can no be converted into brand loyalty.

The consumers do not keep on, sticking up to the brand, which they are
switched to. Together with the end of such special; deal as price cuts, free
samples and coupons etc. Consumers return back to their previous brands.
2.1.3 Brand Loyalty Models
A wide variety of models have been employed in an attempt to understand and
predict brand loyalty behavior. Brand loyalty models analyze brand loyalty

34
behavior of the consumer. They identify factors affecting loyalty behavior and
predict how such factors are likely to affect the behavior in the future.

The models that have been employed to analyze the brand loyalty behavior are
stochastic in nature. “Stochastic Models”. It predicts behavior on the basis of
probabilities. That is to say, stochastic models treat the response of consumer
in the market place as the out come of some such as consumer’s variables and
exogenous variable that determine the outcome of behavior. Even though these
factors of variable are not measured or explicitly included in the model, they
are represented by probability distribution and their effect is accounted. So, far
most attempt at stochastic modeling has been concerned with predicting brand
switching behavior and the rate of trial and repeated purchasing for new
products. Some other models, which are important as well as most widely
used, were reviewed here (Boyd and William, 1992: 59-60)

The James F. Engle and Roger D. Blackwell explained the model, which is
known as “Bernoulli model”. According to the Bernoulli model the consumer
is supposed to have constant probability or purchasing the brand under study,
and the probability or purchasing the brand is determined from aggregate
brand choice data. The model also assumers that the factors like consumer
characteristics, prior purchase, all external influences etc, have no effect on the
probability (Engle and Blackwell, 581).

Determining the probability of purchasing a particular brand from aggregate

brand choice data, however, recognizes that the certain anticipated or
unanticipated circumstances such as limited number of brands available at the
store, specials, or out of stock condition that have effect on the probability. For
example if the brand under study is available at many stores, then the
probability of buying that brand may be greater for the consumers who
purchase that brand.

35
There are several variations of the basis Bernoulli model. Although these
variations have explicitly considered the heterogeneity in the population, yet
they have not abandoned the assumption made by the basis model, i.e. the past
purchase has no effect on the present or future purchase probability.

Similarly, the consumer attitudes (judgments, preferences) towards the brand

alternatives through an evaluation procedure. Consumers have been found to
apply different procedures to make a choice among multi attribute objects.

Philip Kotler presents the consumer’s brand beliefs about computer how
consumers beliefs of each brand rates on the different attributes.

“A consumer’s Brand beliefs about computer”

Table 2.1
Consumers brand beliefs about computer
S.N. Memory Graphic Software Price
Capacity (40%) Capability (30%) Availability (20%) (10%)
A 10 8 6 4
B 8 9 8 3
C 6 8 10 5
D 4 3 7 8

In above the table, consumer rate with brand A as follow; memory capacity 10
on sale; Graphics capability 8; software availability a 6; and price at 4;
similarly, consumer beliefs about how the other three computer rates on these
attributes. The marketer would like to be able to predict which computer
consumer will buy in different opportunity (Kotler, 1996: 196).

36
Markov Model
“Markov Model” assumes that past purchase influences the probability of
current purchases. Many models have been built up on this basis assumption
and they all are known as Markov Models. Among these models, the most
commonly used one is the first order Markov Model.

The first order Markov model analyzes the impact of short-term consumer
learning on the purchase probability. This model assumes that the out come of
the last purchase decision affects the brand choice probability on the next trial
the model denies that expect the last one other previous purchase have effect on
the probability. For example, the purchase sequences AB and BB would both
lead to the same prediction of purchasing brand A on the next purchase because
in both cases the last purchase is brand B (Boyd and Williams1992: 59-63).

Linear Learning Model

The primary concept of this “Linear Learning Model” is similar to that of the
Markov Model. That is past purchase affect the future brand choice. However,
this model assumes that the consumers’ brand choice probability changes by
the certain amount depending on the outcome of a given brand choice event
(where as in the Markov Model, the probability is set to a predetermined value
that depends solely on the outcome on the events).

New Trier Model

“New Trier Model” was developed by David A. Akar to model the behavior
of a consumer who has purchased a new brand. New brand here implies the one
that is not used before by a consumer, or if even used before, that is completely
forgotten he has used that before. According to this model, there is a trial
period after the initial purchase and the probability of purchasing a particular
brand in the future is an outcome of the consumers’ experience relating that
brand in the trial period. In the initial purchase the probability of purchasing the
particular brand is constant for the consumer who bought it. This is the trail
period purchase that affects the probability. After the initial purchase there may
37
be a number of trial period purchases. The number of such purchase may vary
from consumer to consumer. During the vary trial purchase the consumer
develops a new probability of purchasing the brand and it may not necessarily
result into purchase of the brand that was purchase in the initial purchase, it
may also result into rejection of that brand. Thus, this model assumes that past
purchase does not affect the present or future purchase probability and the
probability is non-stationary and varies from consumer to consumer. Even
through the model is considered simple and easier to understand, the
assumption of the zero-order processes has limited its use (Engle and
Blackwell, 583-584).

Probability Diffusion Model

“Probability Diffusion Model” is proposed by David Montgomery. This
model assumes that the past purchase do not affect the brand choice probability
in the time to come. According to this model, an individual response
probability is a function of external environment factors. The probability is
non-stationary and varies from consumer to consumer. Thus the mechanism of
the probability diffusion model is to some extent, related to the of the Markov
model (Boyd and William, 67-70).

2.1.4 Advertising and Product Positioning

Product Positioning is the way of consumers gain about product and service. It
is specially in which consumers rank the features and attributes of product
perceive against those of alternatives product. Consumer will impact certain
brands and perceive as being higher and lower in quality of those brands.
Product positioning shows, result of market as seen by customer with each
segment the company needs to develop a product positioning.

Philip Kotler explained “positioning as the act of designing the company’s

image and value offer so that the segment’s customers’ understand and

38
appreciate what the company stands for in relation to its competitor’s (Kotler,
1996: 308).

According to this version, the product positioning create the positive impacts or
impression in the mind of customer who always been famous about company
product and in comparison to the other competitors. To find out about company
position in the market it requires some formal marketing research. The
especially done for the purpose of finding in position where as our product and
company standing in position. It’s actually based on consumer’s perception or
attitude how they perceived toward product goods and service. It is a
psychological process which is to some extend depend upon same materialistic
value.

Leon G. Schiffman and Leslie Lazar Kanuk explained about product

positioning.

“The image that a product or service has in the mind of consumer that is, its
positioning is probably more important to its ultimate success than are its actual
characteristics” (Schiffman and Kanuk, 1990: 171).

Marketers try to position their brands so that they are perceived by the
consumer as fitting into a distinctive niche in the market place a niche occupied
by no other product. They try to differentiate their products by stressing
attributes that they claim will fulfill the consumer’s needs better than
competing brands. They strive to create a product image consistent with
relevant self image of the targeted consumer segment.

A product or organization has many associations, which combine to from a

total impression. The positioning decision often means selecting those
associations which are to be built upon the emphasized and those associations
which are to be removed a de-emphasized.

39
“The tern “positioning” differ from the older term “image” in that it implied a
frame of reference. The reference point usually being the competition” (David
and Shons, 1982:56).

The positioning decision is often the crucial strategic decision for the company
or brand because the position can be control to customer's perception and
choice decision. A product can be positioned in a different ways like Dabur
tooth paste emphasized medical useful for stronger for teeth. In many product
categories, some brand offer more in terms of free service (electronics items,
vehicles), feature and perform and a lower price service to single the higher
quality. This is widely used for tools, positioning available in the Nepalese
market.

Positioning with respect to a nearly competitor can be aided by comparatively

study which main aimed to make better in performance customer satisfaction.

Koirala stated about product positioning. Product positioning refers to the

strategic decisions and actions intended to create and maintain the
organizations product concept in consumer’s mind. An organization attempts to
place the product in the market in such a manner that it seems to be different
from competing brands. An organization can implement products
differentiation in term of product (feature, quality, style, design) services
differentiation factors on which it has competitive advantages and product
image base on those factors. Positioning is creating a product image which
buyers will view in a certain manner relative to competing brands. Here, the
project image is crucial positioning, thus is what an organization does to the
mind of the buyers rather than what it does to the product. He also stated the
types of positioning according to him attribute positioning, benefit positioning,
usage occasion positioning, user positioning, competitive positioning and
product class positioning” (Koirala, 2000: 148).

40
Types of Positioning
Attribute Positioning: is the simplest positioning under which product are
marketed on the basis of its important characteristics, such as quality, taste,
durability, price etc.

Benefit Positioning: are highlight the end benefit associated with the products.
It is also simple from of positioning where as organization promises a unique
benefit to consumer from the use of the product.

Usage Occasion Positioning: is base on the use of the product on a particular

occasion or for a specific purpose.

User Positioning: is based on the target consumer. It involves presenting

product as “the most suitable” for a particular category of consumer. Product
may be targeted at high, middle, or low income groups or children, teenage,
young, middle aged or old consumer.

Competitive Positioning: the organization products as better or superior to

competitor products. Coke and Pepsi always present their products as better
from each other.

Product class Competitive Positioning: sometimes an organization may

position its product against a product class instead of a particular brand.
Product class positioning invites less-amount of competitive reactions than
direct competitive positioning.

“Product positioning in implemented through a three stage process”. These are;

Identification of Differentiation Factors
Differentiation factor are competitive advantage an organization is able to
exercise in a market in relation to its competitors. Organization creates some
values of products for buyers. The superior values may emerge from a

41
differentiation strategy implemented over the products, services, personal and
image.
 Product Differentiation
 Service Differentiation
 Personal Differentiation
 Image Differentiation
 Style Differentiation
 Design Differentiation
 Feature Differentiation

Selection of Differentiation Factor

Once the organization has identified all the differentiation factor it should
select some factors that are relevant to the products, in the target market.
Selection of the competitive advantage factors on the basis of following
criteria.
 Competitor’s position and their strengths.
 Cost of creating and defending positions
 Consistency with the organization’s image

Communication the Positioning Factors

Once the organization has selected the main positioning variables, it should be
able to deliver and communicate them to the target market. All of the
organization’s marketing efforts should be directed at creating, placing and
defending the positions. Marketing mix for a product, including product, price,
distribution and promotion strategies, should support the positioning strategy.
For instance, organization wants to high image position in market.

Advertising try to influence a consumer’s brand image for positioning.

Advertising provides the standard level massage to all consumer or general
public about products. Advertisements are flow in different lay out and like as
written, oral and visual etc. Advertisements are the Sensible, Felling,
42
Emotional, Entertainment, Glamorous as well as Educational. Advertising
influence the consumer behavior and makes sense about products. Thus, every
organization had done the suitable advertising function.

2.1.5 Advertising and Brand Choice

Brand plays the vital role to sells consumer goods in the markets. Brand
indicates a name or term or sign or symbol or a combination of them, which is
intended east to identify the goods and services of one seller or group of seller
and differentiate them from those of competitors. In the past the goods were
produced and sail an absence of brand and consumers were to select from the
available stock or rang of product. Even today, verification of consumer needs
the Marketer concentrate to the target group’s needs, wants and performance to
deliver the desired satisfaction. Every producer has taken in to account these
consumers individual requirements. While producing the goods and services
and advertising the same for successful selling.

Most of advertising campaigns are designed to influence consumers to buy a

particular brand. Advertising never sell its self’s however, advertising is the
full package of create positive response, information about goods and services.
The message of brands, their attitudes, beliefs, motive, and value are largely
determined by the media the consumer select. The message that they accept
and the product they buy, instead of forcing response.

In the market, same used of product available in different brands so consumer

has the fundamental right or freedom to spend or not to spend their income on
goods and services. No one can force individual choice in the society to spend.
Buying the product is one thing and buying the best is another. Buying the best
depends on their ability to select the best among the wide rang of verities to get
maximum satisfaction from reasonable price.

Advertising affect favorably the consumer choice, because anybody doesn’t

know before they used about the goods and services. It helps to the consumer
43
exercise their power of sovereignty in the most appropriate way, advertising
acts counselor of job or a guide to the consumers. Advertising provides detailed
and up to date information, the regarding various products, where it is available
in the market. So that, the consumers would like to decide to buy wisely and
intelligent manner. It is very difficult to buy accurate brands choice, advertising
helps to solve the problem of coming to the conclusion.

Advertising is a very powerful and successful mass media of communication

that makes possible for the consumers brand choice through rational selection
at reasonable price.

2.1.6 Advertising Media

There are different types of media for advertising for consumer goods and
services in Chitwan, Radio Nepal, F.M. Radio, Television Channel, News
Paper, Magazine, Direct Mail advertising and Outdoor advertising.

Radio Nepal
The Radio Nepal is the oldest information center which was established on 20th
chaitra, in 2007 B.S. (1st April 1915) in Kathmandu, by Nepal government. It
has strengthened its institutional capacity and diversified its self in term of
programmed format, technical efficiency and nation wide coverage. The radio
Nepal provides programmers for time duration of 15 hours daily with 5 hours
in the morning and 10 hours including afternoon and evening. The Radio Nepal
advertising broadcasting is the cheapest and quickest and widely covered in
different parts of Nepal as well as some parts of India.

The transmission capacity of the Radio Nepal is the short wave and medium
wave. The medium wave transmissions are located at Pokhara, Kathmandu,
Dharan, Surkhet, Dipayal and Bharatpur (Chitwan) also.

44
F.M. Radio
In Chitwan, there are two F.M. radio stations. The first F.M. radio station was
establised in Chitwan is 2058 B.S. Synergy F.M. (Ptv, Ltd) by Mr. Shahan
Pradan. The Synergy F.M. Channel airs programmes on 91.6MHZ from
Bharatpur,Chitwan Nepal.

The programme was conduct highlights News, Melody Song, Educational

programmers, entertaining the massage and commercial. The programmes
broadcast at 6 p.m. to 11 a.m. in daily. The commercial advertising was
provided in daily their routing. The Synergy F.M. is suitable for cheapest and
quickest commercial advertising media in local market for different product in
Chitwan.

Secondly, Kalika F.M. Radio (Ptv, Ltd) was establish in 2059 B.S by Mr.
Bikram Pndey. Kalika F.M. is widely area coverage Chitwan, Makwanpur,
Rupandehi, Gandaki and Dhading the programmes were conducted on 24
hour’s daily. The programmes on the Kalika F.M. are similar as Synergy F.M.
The programmes on the channel are directed to the urban audience and to grow
entertainment, information needs, targeting to the young generation. Both F.M.
Radio provided commercial advertising of product.

Television
Television channel is the fully Entertainment. In television channel, we have to
see and felling of advertising sound and movement demonstrate the product,
the potential use effects.

In the Nepal, Nepal television was first commission 2041 B.S. It is government
television channels. Now a day’s private sector channel has also broadcasting
i.e. Kantipur Television, Image Television, Channel Nepal, Nepal 1 channel,
ABC News channel, Sagarmata News and Avineus channels. A Nepalese
television channel plays the important role in mass advertising and educational

45
information. We can see foreign Television also which we have providing by
Nepal cable television new line suppliers. In Chitwan “Chitwan unique cable”
supplies the television line different parts of valley. The local channel “Beso
Channel” was board casting in only for audience of Chitwan. Some
multinational and foreign collaboration companies has good image for
attractive advertising like Coca-Cola, Pepsi-Cola, Liril soap, Dabur honey etc.

News Paper
The newspaper has become an integral part of the life of everybody. News
paper is one of that who gives news ideas –interpretation –opinion comments
and explanation regarding the education, moral, cultural, social and economic
etc. News papers considered continues commercial printing of advertising
which has most powerful tools messenger to the consumer.

In Nepal nation and daily news papers printing are; “The Gorkhapatra, The
Kantipur, The Annapurna Post, The Samachar Patra and English latter press
printing are The Rising Nepal and The Himalayan Times.” Kantipur
publication also pulish from Bharatpur in daily, so it makes the easy to gives
advertising for different products from Chitwan. In Chitwan the local daily
News paper are Chitwan post and Pardarsi. Both News paper are integral part
of Chitwan people. They are both published from Chitwan at early in the
morning daily. They have covered four pages only. Chitwan post has little
more market share occupied than Pardarsi.

Direct Mail Advertising

It includes all forms of advertising through by the mail i.e. Envelop enclosures,
Post Cards, Booklets and Catalogues, Gift Novelties, Store Publication and
Package insert. This is widely used by the marketers of high involvement
goods next to the personnel sales call, direct mail is the most effective way of
advertising.

46
Advertising by mail offers are several advantage, includes selective, intensive
coverage, flexible, control, personal impact, exclusivity and performance. But
it is highly cost per exposure basis.

Out Door Advertising

It is the famous media of advertising and offers the lower per massage
delivered i.e. Posturing, Hording Electric/Electronic signs, Sky writing
Sandwich –man and Traveling display. It include board coverage, very high
frequency, great flexibility and attractive. In Nepal most off the company, Soft
drink, Noodles, Soap, etc. used this of advertising.

2.2 Review of Related Studies

2.2.1 Review of Journals and Articles
Shugan (2005), in his article, “Brand Loyalty Programs: Are They Shams?”,
has stated that a loyal customer should be an enduring asset rather than a
looming liability. True loyalty programs invest now for the future, commit now
to the customer and trust rather than demand trust. In contrast, many extant
loyalty programs appear to produce liabilities rather than assets. These
programs produce short term revenue from customers while producing
substantial future obligations to those customers. Rather than showing trust by
committing to the customer, the firm asks the customer to trust that, in return
for current revenue, the firm will provide future customer rewards. Promising
the customer a future reward for a current purchase can merely shift costs into
the future.

A real loyalty program should aim to create an asset rather than a liability. A
real loyalty program should create current customer benefits by committing to
the customer. A true brand loyalty program creates an asset by making the
customer more attached to the brand over time. That attachment can come from
learning, experience, familiarity, increased switching costs, habit, or
customization. In many cases, competition will diminish or eliminate simple

47
price discrimination and related forms of discrimination because the segment
that faces discrimination is both attractive to competitive entry and easily
captured by competitors.

Lau, Chang, Moon and Liu (2007), in their article, “The Brand Loyalty of
Sportswear in Hong Kong”, have stated that consumer from ‘late teens’ and
‘early twenties’ have the highest interest in clothing. They are also the big
spenders in the sporting goods market. They are in the period of expressing
individuality and beauty and wear up-to-date and trendy apparel. They dispose
their old style apparel frequently and results in frequent wardrobe replacement.
This period represents a change in lifestyle and represents a phase of new
wardrobe demands. As they have high interest in personal appearance, they
tend to have greater clothing expenditure. Nevertheless, the large majority of
the respondents aged from 18 to 24 years old are brand switchers. Therefore,
marketers have to concentrate their efforts and resources on this consumer
segment, such as introducing new lines of fashion sportswear to target the
youth market.

On the other hand, creating brand loyal consumers is difficult. Marketers need
to continually improve their marketing programs to attract and retain
consumers. As competition in the market place is getting increased, consumers
are supplied with information on different brands. Thus, important views
between ‘making more consumer satisfied’ and ‘making specific groups of
consumers more satisfied raises. Making specific groups of consumers more
satisfied is more significant related to company’s profitability level. Therefore,
marketers now focus on brand switching behavior in the market place. As a
result, they concentrate on gaining knowledge in factors that can affect
consumers to become and remain loyal to their own brands. Loyal consumers
may be willing to pay more for a brand.

48
The promotion is the most efficient strategy in attracting brand switchers. In
the sportswear market, promotion tends to reinforce brand switchers to develop
more solid brand loyalty towards sportswear. Youngsters follow the moves of
their favorite sport celebrities, so they buy the same brand used by sport idols,
Sporting goods companies promote their brand images by spending huge
amount of money in sponsoring major sports events and individual sports
celebrities in Hong Kong.

Huang, Perloff and Villas-Boas (2008), in their article, “Sales and Brand
Loyalty”, have stated that consumers surprisingly exhibit little loyalty to either
national brands or private labels for orange juice. Consumers also switch
frequently between frozen and refrigerated orange juice. Switching is enhanced
when stores hold frequent sales of orange juice products. Some consumers,
known as loyal, always buy a particular brand-name food. Other consumers,
called switchers, chose which brand they buy in a given shopping trip
depending on relative prices of the products. Stores try to induce these
consumers to switch to a given brand by putting it on sale.

As household income rises, consumers are more likely to be loyal to a national

brand, less likely to be loyal to a private label and less likely to switch. In short,
wealthy households buy a leading national brand and stick with it, even though
it may cost more than other brands. As household size increases, consumers are
more likely to buy a private label. The reward to buying inexpensive brands
rises with family size. This increase comes at the expense of leading national
brands; however, the share of switchers remains relatively unchanged.

Renters are more likely to be loyal than are home owners. Surprisingly, renters
are slightly more likely to be loyal to both leading national brands and to a
private label than are home-owners. Consequently, renters are less likely to be
switchers. Race affects loyalty to a national brand for refrigerated orange juice.
Race has negligible effects on loyalty to a private label or for frozen juice.

49
Senior citizens exhibit less brand loyalty for refrigerated orange juice than do
younger consumers. In the refrigerated sample, older consumers are less likely
to be loyal to either a name brand juice or a private label. This result contrasts
with pharmaceuticals, where older consumers were more likely than others to
buy a name brand instead of a generic drug. Age has virtually no effect on
switching behavior in the frozen or combined samples.

Gommans, Krishnan & Scheffold (2009), in their article, “From Brand

Loyalty to E-Loyalty: A Conceptual Framework” have stated that the drivers of
e-loyalty have immediate implications for marketing management in terms of
developing and maintaining brand loyalty in e-space. However, the relative
importance of the drivers of e-loyalty in brand strategy formulation depends on
the type of e-business as well as the type of market situation.

A customer who buys something on the Internet has one major disadvantage
compared to a customer in real space. Internet customers cannot touch, smell,
or experience the good before they buy it. This makes a shopper insecure about
buying a product. In order to minimize this insecurity, an e-business should
offer brands that are well-known, good product quality, and, of course,
guarantees.

A unique factor in e-loyalty is the critical role of the first impression created by
a website as well as its ease of use - easy navigation, fast page loads, server
reliability, quick shopping and checkout processes, and a personalized
interface. Further the convenience and site design are among the major factors
that determine customer satisfaction, which in turn influence the decision to re-
patronize a site.

Jackson (2010), in her article, “Driving Brand Loyalty on the Web”, has stated
that the savvy managers know that the problems they are searching for could
result in their customers losing interest, confidence, or patience in their

50
website- the kinds of issues that undermine the ability of this key customer
touch-point to drive brand loyalty. Websites arguably present more demands
than any other brand touch-point. For some Web users, the site is the entire
customer experience. Business strategy, brand strategy, communications
strategy, product quality, and customer service strategy are all transparent. The
site is a pressurized environment, since it exposes every dimension of the
company.

The customer who is prepared to pay a substantial premium for consumer

electronics but who discovers, upon visiting a company website, that product
images take an interminably long time to build or that crowded pages and
unclear navigation make it next to impossible to locate a product’s technical
specifications. Both cases would severely undermine this customer’s
confidence in the brand and his or her motivation to purchase.

While the Internet may seem like an anonymous space, in reality it is far easier
to track customers, their purchase histories, and their preferences online than in
a traditional business setting. Customers in bricks-and-mortar stores leave no
record of their behavior unless they buy something even then, the data are often
sketchy. But in virtual stores, their shopping patterns are transparent. Every
move they make can be documented, click by click. If a customer exits a
website when the price screen appears, it’s a fair bet that he’s price sensitive. If
one jumps from page to page without ever initiating a transaction, one is
probably frustrated at being unable to find what one wants.

2.2.2 Review of Thesis

There are some studies has already done in the related field, but all of them
research has their own criteria and explanation. Research is never ending any
subject matter. Past research doesn’t match present situation and present
research doesn’t match future situation research is on going all the moments of
time factors. Because it’s all depend upon consumer behavior, advertising

51
influence as well as environment effect, social, economic, cultural and
demography. Therefore this efforts study only carry out the whole Chitwan so,
make me “The marketing of soft drinks” in Chitwan.

Bhatta (1998), was conducted research entitled “Sales Promotion and its Effect
on Sales”, A case study of Beer market. Major objectives of this study were
impact of sales promotion on sales of bear. The major findings of this study are
as follows
 The person drinks beer for relaxation rather other causes.
 The people prefer San Migule Brand more than other brands.
 People were aware sales promotion activities. Out of them most people
know about cash prize than other tools of sales promotion. Likewise
people are insisted by the cash prizes out of all others.

Most people like little bit of the contest but out of persons who have taken parts
in contest have not got any prizes yet. And those who have got the prizes are
insisted to have same brand of beer. So it is clear that the person who get the
prizes out of promotional activities are convinced to have brands of beers.

Electronic media is very popular among the people and the people who watch
and listen media notice the advertisement, the percentage of the people notice
advertisement for entertainment s are higher than for information.

There are positive relationship between the sales and sales promotion. If the
expense on sales promotion increase in the sales increase in high speed.

Cash prizes are the most popular as well as effective sales promotion
techniques for beer industries. In one hand, companies in every promotional
program offer cash prizes and other hand most people say that they are induced
by the cash prize.

52
Adhikari (2006) in his thesis entitled “Impact of Sales Promotion Tools on
Sales of Cold Drinks” was conducted in the field of sales promotion. The
following are the major objectives of the present study.
 To find out the promotional tools and media is more acceptable to
Nepalese consumer.
 To evaluate effectiveness of sales promotional activities in the sales of
cold drinks in Nepal.
 To evaluate the relationship between the relationship between sales
promotion package and consumer behavior.

This research is based on primary data as well as secondary data and the major
findings of this study were as follows:
 People are aware about sales promotion activities. Out of them most
people know about item prize than coupon than cash prizes .but cash prize
is effective than others tools.
 The sales of one brand doesn’t effect negatively to the sales of other
brands. As the observation shows that the trend of all two brands are
increasing.
 All media is not popular among the people. Only electronic media (F.M,
T.V) is very popular among the people and the people who watch and
listen media notice the ads, the percentage of the people notices ads for
entertainment are higher than for information .
 Retailer are interested on promotional program. There are aware of cash
prize than other promotional work. Thus sales promotion programme has
positive impact on retailers and must of them taken parts on contest and
win prizes.

Shrestha (2005), has conducted research study on “The Role of Advertising in

Sales (A Study of Bottlers Nepal Ltd., Bottlers Nepal (Terai) Ltd. and Nepal
Lever Ltd” with following objectives:
 To measure the advertising expenditure of Bottlers Nepal Limited. Bottles
Nepal (Terai)Ltd and Nepal Lever Limited and its impact of sales.
53
  To analyze the impact of advertising on total performance of Bottlers
Nepal Limited, Bottlers Nepal (Terai) Ltd
 To measure the advertising expenditure as percentage of company sales.

The study has conducted that the only purpose of advertising is to sell
something a product, a services or and idea. it is very powerful tool for the
creation and retention of consumer demand and it is pivot of modern industry
and commerce .Finally the sales has positive relationship with advertising
expenditures and advertising plays a significant role on the total performance
of company as well as concerned companies devoted a very small percentage
of sale to advertising.

The study has recommended that the quality of advertisement should be

improved, television advertising is more popular and among the consumers of
Kathmandu valley etc.

Aryal (2002), has conducted another study entitled “The study of market share
of Colgate: in comparison with Other Brands”. This study mainly focus to find
out the market share of Colgate in comparison with total other brand
toothpaste. In this study is based on the primary and secondary data. The major
findings of the study are as follows.
 Normally people brush twice a days in KTM because of the people are
educated and are health conscious.
 Most people always performed T.V media among the various other
media.
 The expenditure on toothpaste by people is not much because the price of
toothpaste is cheap than other daily use commodities.
 Most shops are stocking more brands but close up and colgate are highly
stocking and selling brands.

54
  The retailers are purchasing their stock of toothpaste form the distributor
mainly because all companies have their own distributor in most of the
place in market .
 The shopkeeper sells close-up in more quantity than other brands . it
shows that the close up sales is high and its market share is also high
than other brand of toothpaste.
 On purchasing the toothpaste people generally observed different
incentives or scheme on different brands. So the scheme have direct
impact on sales . Hence the different companies offer different schemes
on their products and on observing the view of people, they also say that
the scheme and different prizes induce them.

Luitel (2006), in his thesis, “A Brand Preference Study Between Sanmiguel and
Tuborg Beer in Kathmandu Metropolitan City”, has the main objective to
analyze the brand preference in beverage. The other specific objectives are;
a. Examine the buying habit regarding beer and the buying of the
consumers.
b. To find out the effective advertising media loaf beer and their impact on
the consumers
c. To find out the sales volume of beer in Kathmandu metropolitan city.
d. To suggest measures for promotion marketing of Sanmiguel and Tuborg

The major findings of the study are;

a. 42% are occasional drinkers with 25% preferring Sanmiguel and 17%
preferring Tuborg out of 100 beer drinkers.
b. The advertisement of Tuborg has the highest recall value among beer
drinkers.
c. 55.93% of beer drinkers preferred to Drink beer with friend Sanmiguel
stand for 22.58% and Tuborg by 33.35%.
d. Brand preference between the two brands Tuborg and Sanmiguel were
found to be 56% and 44% respectively.

55
Pandit (2008), in his thesis entitled “A study on Brand Loyalty” was conducted
in the field of brand loyalty. The following are the major objectives of the
present study.
a. To find if Nepali consumer are loyal or not
b. To identify the correlates of Brand Loyalty.
c. What factors cause the consumer to switch the brand?

The major objectives of the study are;

a. Nepali consumers are aware of various brands of the product offered.
b. The brand loyalty in Nepalese consumers varied as per variable such as
age, sex, martial status, family system, education etc.

Singh (2009), in his thesis entitled “A study on Brand Loyalty on Nondurable

Product”, has the main objectives to evaluate the brand loyalty on nondurable
products. The other specific objectives are;
a. To find out the brand loyalty
b. To know the consumer behavior on Non durable Product
c. To make the guideline for making marketing strategies
d. Similarly this study will be valuable reference to he scholars and
researchers.

The major findings of the study are;

a. Nepalese consumers give high importance to Brand in the consumer
non-durable goods. The weighted mean of the various important points
given (i.e. from 01 to 05 ) by the respondent is 3.94
b. Most of the consumers are found buying the products selected for this
study by brand rather than by inspection or influences. The percentage
of consumers who buy by brand is 70% in Cold Drink, 74% in instant
noodles. 52 % in Hair Oil and 60% in Shampoo.
c. In each product selected for the study, at least 64% of the consumer are
found to have knowledge of maximum alternative brands available in

56
 the market. This shows the high brand awareness in Nepalese Urban
consumers.
d. Majority of the Nepalese urban consumers are found brand loyal.

Kayastha (2009), in his thesis entitled “Brand Loyalty on Consumer Product”

has the main objective to trace the brand loyalty on consumer product in
Kathmandu. The other specific objectives are;
a. To identify the relationship of brand loyalty with demographic variables
like age, sex and income.
b. To find out the number of brand loyal consumers or percentage of brand
loyal consumer.
c. To recommend important measures that would help the develop
marketing strategies and for conducting further researchers on loyalty on
branding in future.

The major findings of the study are;

a. In case of mineral water greater % of female are found to have loyal and
most of male are found to have no loyalty. Test shows that there are
significant difference between male and female.
b. Similarly in the case of toothpaste % of loyal respondent are found high.
They are equally brand loyal. There is no significant difference in brand
loyalty between male and female.
c. In the case of Shampoo, male and female are found to have equally loyal
tests however that there is no difference in brand loyalty between male
and female.
d. In case of hair oil male and female respondent are found highly loyal.
Among them female are more than and test statistics shows that there is
no difference in brand loyalty between male and female.
e. Under age group 15-20, greater % of respondent are found to have
divided loyalty and then found to have no loyalty in case of soap.

57
f. There is no relation between age and brand loyalty. Greater % of
respondent is found to have divided loyal among them.
g. Most of the respondent are found to have undividedly loyal in case of
shampoo. This indicates that, they are conscious in the case of shampoo.
Test statistics shows that there is no relation between age and brand
loyalty.
h. In the case of Mineral water greater % of respondent are found to have
loyalty. Among them greater % of respondent of age group 20-25 are
found loyal. Test statistics indicates that there is no relation between age
and brand loyalty.
i. In the case of toothpaste most of respondents I fall undividedly loyal
categories. Most of respond of age group 20-25 and 25-30 are found
strongly loyal. Test statistics indicates that there is no relation between
are and brand loyalty.
j. In the case of hair oil most of respondent are found have to undividedly
brand loyal. Among them greater % of age group 30 and above, are
found more loyal then other group. The test statistics shows that there is
no relation between age and brand loyalty.
k. Under income group 2000 and above greater% of respondent are found
to have to undividedly loyal in the case of shop. Test statistics show that
there is no relation between income and brand loyalty.
l. In the case of shampoo greater % respondent of income group are found
to have undividedly brand loyal. In this case most of respondent are fall
in to undividedly brand loyal. And test statistics show that ther is no
relation between income and brand loyalty.
m. In the case of mineral water most of the respondent is found to have no
loyal. But among them greater % of respondent of income group 20000
and above are found undividedly loyal in the case of Mineral water. This
indicates that there is no relation between age and brand loyalty.

58
Shahi (2010), in his thesis entitled “A Study on Brand Loyalty on Consumers
(Beverage, Soap, Toothpaste, Hair Oil & Shirt)" has the main objective to trace
the brand loyalty on consumer product in Kathmandu. The other specific
objectives are;
a. To identify the relationship of brand loyalty with demographic variables
like age, sex and income.
b. To analyze the reason behind switching the brand.
c. To identify the major tool that aids consumer to recognize their more
easily.
d. To trace out the main drive that makes consumer to have strong brand
belief.

The major findings of the study are;

On the basis of the analysis done, the following major findings have been
drawn;
 It has been ascertained that the consumers under the age of 25 year are
more brand loyal than that of others, since the preponderance of
percentage on strong brand loyalty and moderate brand loyalty is highest
in such group of people than in others, mainly in beverage, hair oil and
shirt.
 However, the consumers above the age of 40 year are more brand loyal
than other in soap product, and the consumers within the age of 25 to 40
year are more brand loyal in toothpaste products.
 Similarly, men are more brand loyal than woman in the consumption of
beverage and shirt, while women are more brand loyal than men in the
consumption of hair oil, toothpaste and soap.
 The income level has direct impact on the brand loyalty of each product.
The brand loyalty in the consumers earning high income is greater than
those earning low income in the brand of beverage, soap, hair oil,
toothpaste and shirt.

59
  50% of the respondents have stated that the consumers have moderate
brand loyalty on the product like Beverage, Soap, Toothpaste, Shirt, and
Hair Oil. Similarly, 87% of the respondents have inferred that there
exists highly positive relationship between brand performance and brand
loyalty.
 Likewise, 40% of the respondents have suggested that the brand maker
should concentrate more on effective cartoon or animation for the brand
in order to be easily identified the brand by the consumers. And 53% of
the respondents have stated that the brand name would be more
memorable to the customers, if it is made after location name.
 37% of the respondents have asserted that the brand maker should
concentrate most in making memorable brand name to affectionate the
consumers toward the brand. Similarly, 60% of the respondents have
stated that the satisfaction level in past consumption is the major driving
force to make strong brand belief.

2.3 Research Gap

Undoubtedly, the previous research made related to the brand loyalty is good to
some extent. But what has been ascertained that the previous researchers have
analyzed only the responses of the consumers and thus have not embraced the
opinions of the distributor’s channels. Thus to overcome this gap, the present
research has been conducted by analyzing the buying pattern of the consumers
and the experience of the distributive channels, such as the opinion of the
personnel of the departmental store and the grocers.

60
 CHAPTER - III
RESEARCH METHODOLOGY

A Research methodology is the frame work of research which is the plan of

action and carried out is systematic manner. There are various sequential steps
to be adopted in studying researcher with certain objectives therefore several
steps follow up of methodology.
 Research design
 Population and sampling
 Data collection procedure
 Source of data
 Data processing and analyzing

3.1 Research Design

The present study is based on research design. General objective of this
research study is to examine and evaluate the consumer behavior of different
types of soft drinks in mainly Chitwan. The study is focuses on the examination
of relation between consumers and products of soft drinks. And influence
factor to create purchasing.

3.2 Population and Sample

The population of this study is consists of buyers and sellers of soft drinks. i.e.
potential consumers of all age groups, equally both sexes male and female of
Chitwan.

Samples are taken from population of Chitwan. The sample consists from
different sectors such as students, teacher, service holder private and service
holder government and business man. For the study purpose 300 respondents,
distributors, dealers and retailer of soft drinks taken in account of Chitwan
District.

61
Sampling procedure is an intercept person to person from suitable
questionnaires and interview observation of consumer of Chitwan. It has been
conducted many places of Narayanghat, Bharatpur, Ratna nagar, Gita nagar,
Rampur, Muglin bazaar and where it is necessary.

3.3 Data Collection Procedure

All the data were collection with concern of consumer behavior of Chitwan.
There are various types of consumers of soft drinks and many types retailer.
The problem of the study lies on the issues to the behavior of consumers.
Hence, various data are required. With the view of obtaining data, a data
collection tools may be design to be subjective. A number of short
questionnaires were designed to concern consumer habit. The different levels
or types of consumers/buyers have filled up the questionnaires. In the first, the
researcher him self visited the potential market and the questionnaires were
distributed to the consumers. Secondly, the responses of questionnaires were to
be collection.

For the reference materials, the researcher visited Chamber of commerce,

Central department of management, Tribhuvan University, Kritipur and several
of libraries etc.

3.4 Source of Data

The sources of data are mainly used primary data and there is less use of
secondary data. As depending on the nature of data and information source has
been utilize.

 Primary Data
Primary data has been collected directly from the respondents through the
methods of observation, interviewing and questionnaire for different levels of
consumers i.e. level of income, level of students, level of teachers, level of

62
service holders and level of business man, which are taken from primary
sources of data.

 Secondary Data
Secondary data is study as a regards supporting literature, publisher in trade,
journal article, bulletins, news papers, magazines and relevant books have been
study.

3.5 Data Processing and Analysis

All the data have been collected by field survey researcher himself. So there
was not any delay in collection of the questionnaires which were distributed to
the consumers. Every questionnaire was thoroughly checked after collection
and was found to be correct. The same responses of the collected
questionnaires were put in to one place under the respective heading and the
total responses were counted. The total responses were presented in one master
table with the help of data the master table, necessary adjustment have been for
attaining the objectives of the study.

All the data is analysis is made on the basis of data presentations in master
table. Data is analysis both descriptively and statistically tools like Mean
percentage, frequency ratio and hypothesis testing X2 test have been used to
calculate the numerical for the necessary.

Chi-square Test
A measure of the discrepancy between observed and expected frequencies is
known as X2 test Statistic and defined as:

 O - E 
2

X 2

E
Use of Chi-square test
Chi-square test is used to test whether more than two population can considered
equal. Actually, Chi-square test allows us to do a lot more than just test for the

63
equality for several proportions. If population are classified in two attributes
(for example advertisement and brand preference) we can use a chi-square test
to determine if the two attributes are independence of each other.

Some conditions for applying X2 test

a. The frequency used in X2 test must be absolute, and not in relative term
b. The total number of items must be as large as 50.
c. Each of the observation of the sample must be independent of each other.
d. The expected frequency of any items or cell must not be less than 5. If it is
less than 5, the frequency of adjacent items or cells should be pooled
together in together into make it 5 or more then 5. (e) X2 test cannot be
used for estimating the value of the population parameter.

Steps for the computation of chi-square test

Step:- 1
Formulate the null and alternative hypothesis
Ho: There is no significant different between observed and expected frequency.
H1: There is significant different between observed and expected frequency.

Step:- 2
Compute E1,E2,…..En corresponding O1,O2…..On under some theory or
hypothesis.

Step:- 3
Compute the deviation (O-E) for each frequency and then square them to
obtain (O-E) 2

Step:-4
2
Dived the square of the deviations (O-E) by the corresponding expected

 O - E 
2

frequency to obtain
E

64
Step:-5
Add the value obtain in step (IV) to compute under Ho.

 O - E 
2

X 2

E

Step:- 6
Under the null hypothesis that the theory first the data well, the above statistic
follow X 2 – distribution v-n-1 d.f.

Step:-7
Make decision, if the computed value of X 2 is less than it’s tabulated (critical)
Ho is accepted, if the computed value of is greater than its tabulated values Ho is
rejected (i.e. H1 is accepted) (Gupta, 2002).

3.6 Limitation of the Study

This study has been made taking time and other constraint into consideration.
A small sized sample might not be adequate to represent the whole feature of
population. Mainly two branded of cold drinks and other few soft drinks have
been included as demands which are seen in use by consumer in Chitwan.
Therefore, the findings of this study are based on the analysis of few cold soft
drinks brands.

Since the sample are down from some limits area of Chitwan. In spite of
sample are attempt to included random systematic method. Respondent are not
habitual to respond. Their reluctance to respond, hesitation and dual answer
made the data collection difficult.

65
 CHAPTER - IV
DATA PRESENTATION AND ANALYSIS

This chapter deals with the analysis and interpretation of data obtained by
researcher from market. The data are analyzed descriptively as well as
statistically with the help of necessary tools related with it and presented them
in an accurate and clear manner.

In course of conducting this research, the researcher selected 300 consumers or

respondents from Chitwan and tried to find out views of consumers. Most of
respondents have the drinking habit of soft drinks in hot seasons. Different
respondents results are analysis has been interpreted keeping in master table.
This result has been interpreted keeping in mind the conventional standard with
respect to factor while using tools. Simple table, line graphs, bar diagram and
pie-chart obtaining responses various table are prepared. Homogenous natures
of data have been put into the same suitable table.

Respondent Profile Drinking Habit

4.1 Drinking Habit Sex Wise
Analysis of the consumer who use soft drinks out of 300 respondents and their
percentage shown below
Table 4.1
Drinking Habit of Sex Wise
Number of respondent and their percentage tables
Age Group Coca-Cola Pepsi-Cola Real Juice Frooti and %
others
Male 99 33% 63 21% 15 5% 21 7% 66%
Female 63 21% 24 8% 6 2% 9 3% 34%
Total 162 87 21 30 100%
(Source: Field Survey,2010)

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In the table 4.1 shows that out of 300 respondents 66% male and 34% female
use soft drinks which use 54% Coca-Cola brands 29% use Pepsi-Cola brands
7% use real juice and 10% Frooti and others juice.

Similarly 66% male use soft drinks who use 33% Coca-Cola brands, 21% use
Pepsi-Cola brands, 5% real juice and 7% Frooti and others juices. In the total
figures, 300 respondents’ male and female belongs to goes in favour Coca-Cola
brands. Pepsi-Cola brand is the second’s position and rest are other kinds of
juice.

4.3 Drinking Habit of Age Group

Analysis of age groups of the consumer who use soft drinks out of 300
respondents and their percentage shown below:
Table 4.2
Drinking Habit of Age Group
Age Group Number of respondent and their percentage tables
Coca-Cola Pepsi-Cola Real Juice Frooti and others %
Under 16 45 15% 23 8% 6 2% 9 3% 28%
16-40 72 24% 40 13% 9 3% 15 5% 45%
Above 40 45 15% 24 8% 6 2% 6 2% 27%
Total 162 87 21 30 100%
(Source: Field Survey, 2010)

In above table, age groups are divided into three categories they are, under 16
years age, 16-40 year age and above 40 years age. Among them 16-40 years
age 45% used soft drinks, which is the highest used soft drinks in the rank of
age. The rest are under 16 years age used 28% and over 40 years age used 27%
used soft drinks. Similarly, table shown that a Coca-Cola brand is the first
position total age groups used 54% out of 300 respondents. This result shown
most of age factor preferred Coca-Cola brands then Pepsi- Cola brands and
others kinds of juices.

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4.3 Family Status
While analysis the responses of the consumer behaviour on the basis of family
status. The researcher tried to show which particular brands has its favour by
respondents over other brands.
Table 4.3
Drinking habit of family status
Number of respondent and their percentage tables
Family
Status Coca-Cola Pepsi-Cola Real Juice Frooti and others %
Poor 30 10% 12 4% 6 2% 6 2% 18%
Medium 75 25% 45 15% 9 3% 14 5% 48%
Rich 57 19% 30 10% 6 2% 10 3% 34%
Total 162 87 21 30 100%
(Source: Field Survey, 2010)

The above the table shows that among 300 respondents poor family used soft
drinks only 18% or 54 respondents which are least in ranking. The highest used
off soft drinks is medium family which is used 48% respondents. Rich family
used to drinks 34% which is the higher than poor and lower than medium
family.

4.4 Occupation Group

The analysis of the respondent of consumer behavior on the basis of
occupation groups attempts to show a particular brands to domination over
others brands.
Table 4.4
Drinking habit of occupation group
Occupation Number of respondent and their percentage tables
group Coca-Cola Pepsi-Cola Real Juice Frooti and others %
Business 30 10% 9 3% 3 1% 6 2% 16%
Service 36 12% 15 5% 6 2% 6 2% 21%
Students 40 13% 20 7% 6 2% 8 3% 25%
Other 56 19% 43 14% 6 2% 10 3% 38%
Total 162 87 21 30 100%
(Source: Field Survey, 2010)

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Table show that among 300 respondents, 48 respondents belongs to business
man, 63 respondents are service holder, 74 respondents are students and other
115 are engage in different occupation. Among them all occupation groups’
preferred Coca-Cola brands, business man-10%, service holder-12%, students-
13% and others-19% respondents. Similarly, Pepsi-Cola preferred 3%, 5%, 7%
and 14% respectively. Rests are used different kinds of soft drinks juice.

4.5 Over all Brand Preference of Consumers

In order to find out brand preference by consumers in totality, the researcher
has prepared separate table obtained differential responses? These responses
have own brands favor. No. of person using different brands prefer out of 300
despondence as below.
Table 4.5
Overall Brand Preference of Consumers
Brands Name of Soft User no. of Percentage Total
Name drinks person Percentage
Coke 102 34%
Fanta 36 12%
Coca-Cola Sprite 15 5% 54%
Soda 9 3%
Pepsi 56 19%
Merinda 16 5%
Pepsi-Cola 7 up 9 3% 29%
Soda 6 2%
Real 21 7% 7%
Juice Frooti and
Rio, Others 30 10% 10%
Total 300 100 100%
(Source: Field Survey, 2010)

In above tables shows that total figure of respondents prefer Coca-Cola brands
like Coke-34%, Fanta-12%, Sprite-5% and Soda-3% as total percentage is 54%
respondents. And Pepsi-Cola brands prefer Pepsi-Cola-19%, Mirinda-5%, 7
up-3% and Soda-2%. So the most of respondents are response to the Coca-Cola

69
brands. It’s shown that Coca-Cola brands are famous in Chitwan to the Soft
drinks of consumers. In term of soft drinks juice is 7% in overall soft drinks
and Frooti and Others juice is 10% in overall soft drinks. The market share of
soft drinks juice also satisfactions in Chitwan.
Figure 4.1
Pie chart, Consumers Brands Preference of Soft Drinks

4.6 Factors of Brand Choice

When the during of research time the researcher under took and analysis factors
of brands choice there are some factor brand name, product quality, packing
and taste reminded the prime factors. Which exert important role of brand
choice?
Table 4.6
Factors of Brand Choice
Factors No. of respondents Percentages
Brand name 125 41.66
Taste 79 26.33
Quality 33 11
Packaging 18 6
Product of ability 45 15
Total 300 100%
(Source: Field Survey, 2010)

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Brand choice factor are the main factor which consumer behavior known. All
the consumers have different type of thinking about brand choice. Above the
table, 300 respondents 41.66% prefer brand name, 26.33% buy the soft drinks
their suitable taste, which makes the consumers wants to buy again and again.
6% accepts their packing and another factors 15% product of ability, which
makes the consumers, wants to buy easily their availability.

Figure 4.2
Factors of Brand Choice

4.7 Patterns of Consumption of Soft Drinks

The during research period researcher tried to find out consumption patterns of
soft drinks analysis the respective responses.
Table 4.7
Consumption Patterns of Soft Drinks
Patterns No. of Respondent Percentage
Once a day 254 84.66
Twice a day 39 13
Thrice a day 7 2.33
Total 300 100%
(Source: Field Survey, 2010)

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Above table shows that among 300 respondents, 84.66% drinks once a day,
13% wanted to drink twice a day and 2.33% wanted to drinks thrice a day.
From these data we know that most of consumer of soft drinks once a day.

4.8 Taking Time for Buying Decision of Soft Drinks

During research period researcher tried to find out record their views about
time whether they decide pre-buying decision or during-buying decision.
Table 4.8
Taking time for Buying Decision
Time No. of respondent Percentage
During buying decision 250 83.33
Pre-buying decision 50 16.66
Total 300 100%
(Source: Field Survey, 2010)

Above table shows that among 300 respondents, 8.33% answer they always
took decision during buying period and only 16.66% took decision pre-buying.

Figure 4.3
Pie chart taking time for Buying Decision

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4.9 Consumer Reaction in Absence of Preference Brands
During research period, the researcher analyzed the behavior of consumers in
absence of preferred brand. Table shows as fellow.
Table 4.9
Consumer reaction in absence of preference brand
Behavior No. of respondent Percentage
Buy the alternatives 185 61.66
Wait for the favorite one 25 8.33
Buy the one that seller appreciate 82 27.33
Search favored brand for distant place 8 2.66
Total 300 100
(Source: Field Survey, 2010)

Above table shows the respondents expressed their views about by chance if
their favorite brand absences some are wait and some are not wait. Mostly,
61.66% respondent goes to another similar brand 8.33% does not want to go
another brand, some 27.33% respondent thinking on buy the one that seller
appreciate and only 2.66% report the they want to go to distance place to
search their favorite brand, vise versa to compromise similarity alternate
brands.

4.10 Expect Thirst, Purpose of Buying Soft Drinks.

In order to find out purpose of buying soft drinks expect satisfying thirst of
consumers there are many caused of buying soft drinks e.g. Join with friend,
entertainment. Company another food and fashion to drinks show other etc.
obtained different response; these responses are shown in table.

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 Table 4.10
Purpose of buying except thirst
Purpose No. of respondent Percentage
To join with friend 130 43.33
For entertainment 45 15
Company with other food 89 29.66
Request for buying 20 6.66
Fashion or to show others 16 5.33
Total 300 100%
(Source: Field Survey, 2010)
Figure 4.4
Purpose of Buying Expect Thirst

In above table there are different type of opinion buying soft drinks except
thirst, 43.33% respondent drinks to company their friend, 15% entertainment,
29.66% respondents drinks a company for other foods (like fast foods), 6.66%
respondent goes request or force of buying and 5.33% respondent (which is
young) drinks for purpose of fashion or to show others.

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4.11 Advertising Influence on Brand Decision
Advertising plays the vital role of brands choice. The researcher asked the
respondents to record their views about advertising influence on their brand
decision.
Table 4.11
Advertising Influence on Brand Decision
Influence Respondent Percentage
Yes 200 66.66
No 75 25
Not-knowing 25 8.33
Total 300 100%
(Source: Field Survey, 2010)

In above the table, out of 300 respondents 66.66% replied that advertising
influence (attractiveness) buying decision, 25% replied that they are not
influence (common sense) advertisement and rest 8.33% answer do not know
(either or nor) the factor influencing them to buy. From this concluded that
number of more consumer influence by advertisement is significant.

4.12 Media Recognition (Aware) Taste

The researcher has made an effort to trace out particular media, which plays
enforcement to buy soft drinks. Table shows as bellow.
Table 4.12
Media Recognition (Aware) Test

Media No. of respondent Percentage

Radio Nepal 56 19
TV Channel 112 37
Newspaper 36 12
Wall Painting 30 10
Hording Board 18 6
All of Above 48 16
Do not Know 0 0
Total 300 100%
(Source: Field Survey, 2010)

75
In above the table, among 300 respondents 19% got the information from
Radios, 37% got information from Television broad cast, 12% respondent
information from Newspaper, 10% got information from source of Wall
painting, 6% got from information Hording boards and rest 16% got
information all of different advertising source of media.

Figure 4.5
Media Recognition (Aware) Test

4.13 Attractiveness of Advertising of Soft Drinks

The researcher analyzed the response of consumer’s behavior which soft drinks
advertisement is attractiveness to information in different media to the
consumers.
Table 4.13
The Advertisement Attractiveness Test
Brand Respondent Percentage
Coca-Cola 145 48.33
Pepsi-Cola 59 19.33
Real Juice 50 16.33
Frooti Juice and Others 46 15.33
Total 300 100%
(Source: Field Survey, 2010)

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In above table, Coca-Cola advertisement is very high level attractiveness.
According to the respondents result is 48.33% influenced on Coco-Cola
advertise. 19.66% influence Pepsi-Cola advertises, 16.33% influence in Real
juice and Frooti & Others juices are 15.33%.

4.14 Consumer Page Choice on Newspaper

The researcher analyzed 300 respondents to responses about to show
consumers view page choice decision of advertising of soft drinks different
types of news paper, preparing table as shown bellow.
Table 4.14
Consumers page choice with respect to newspaper
Page Respondent Percentage
Front page 210 70
Inner page 70 23.33
Last page 20 6.66
Total 300 100%
(Source: Field Survey, 2010)

In above table, 300 respondents 70% respondents are belong to front page,
23.33% consumers belongs to inner page and rest 6.66% preferred the
advertising must be last page in the newspaper.

4.15 Consumer Habit on brand switching

The researcher had tried to find out consumer brand switching habit of
respondent. There are obtaining different aspect of responses by consumer.
Which are shows as table?
Table 4.15
Consumer Habit on brand switching
Brand switching No. of Respondent Percentage
Negative(No) 180 60
Positive(Yes) 120 40
Total 300 100%
(Source: Field Survey, 2010)

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In above table, 40% respondent have brand switch. Different types of consumer
have different types of thinking about brand switching. Here, reasons for brand
switching are important on consumer behavior.

4.16 Reasons for Brand Switching

There are 120 respondents are brand switching Habit out of 300 respondent.
There are some causes of brand switching. Obtained that differential causes of
brand switching habit are shown as table
Table 4.16
Reason for Switching
Reason No. of respondent Percentage
A desire for new test 60 50
New one give some offer 40 33.33
Not available old one 11 9.17
Other causes 9 7.5
Total 120 100%
(Source: Field Survey, 2010)

In above table shows that, 120 respondents 50% have a desire to new one taste,
which were habitual of human beings, 33.33 have believed in offer, 9.17% buy
the another one on the situation of their favourite brand was not available in
every where. And 7.5% where brand switching other reasons. It concluded that
most of consumers have brand switching a desire for new test and the
companies give some offer.

4.17 Annual sales and delivery management of Coca-Cola distributors in

Chitwan
The researcher wants to try to show fair data and analyzed Coca-Cola
distributor of Chitwan.
Distributors firm Address Proprietor name
Suva Marketing Narayangarh-4 Uttam Maskey
R.L. Enterprises Bahratpur Rajkumar Shrestha
Narayani Enterprises Ratna Nagar Umesh Giri
B & B Enterprises Gita Nagar Bashu Baniya
Gauchan Enterprises Muglin Bazar Bharat Gauchan

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(a) Narayani Distributors
Year Sales
2008 124000 kret.
2009 156000 kret.
2010 75000 kret.

In 2010 due to The sub-division area (Gaidakot, Nawal parasi) of marketing is

divided by company. The sale volume is low in Narayangarh distributions.

(b) Bharatpur Distributors

Year Sales
2008 25000 kret
2009 40000 kret
2010 40000 kret

(c) Ratna nagar Distributors

Year Sales
2008 37000 kret
2009 40000 kret
2010 50000 kret

(d) Gita nagar Distributors

Year Sales
2008 12000 kret
2009 15000 kret
2010 20000 kret

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(e) Muglin Distributors
Year Sales
2008 20000 kret
2009 25000 kret
2010 35000 kret

Above given data Total Coca-Cola sales in whole chitwan, different years
Year Total Sales
2008 218000 kret
2009 266000 kret
2010 220000 kret
(1 kret = 24 piece of coca-cola)
(Source: Distribution of Coca-Cola)

4.18 Annual Sales and the Delivery Management Pepsi-Cola from

Distributors in Chitwan
Distributors Address Propitiator Name
Shree Ram Enterprises Narayanghat- 4 Ravi Shrestha & Chhabi Shapkota
Sharu Enterprises Ratna Nagar Krishna Bhattrai

(a) Narayanghat Pepsi-Cola Distributor.

Year Sales
2008 40000 kret.
2009 45000 kret.
2010 55000 kret.

(b) Ratna Nagar Distributors

Year Sales
2008 13000 kret.
2009 15000 kret.
2010 18000 kret.

80
Above given data Total Pepsi -Cola sales in whole chitwan, different years.
Year Total Sales
2008 53000 kret
2009 60000 kret
2010 73000 kret

(1 kret = 24 piece of Pepsi-cola)

(Source: Distributors of Pepsi- Cola)

1.2 Annual sales and delivery management of Real Juice in Chitwan

According to the Distributors
Distributors Address Propitiator Name
N.S. distributors Narayanghat- 2 Niraj Kumar Singh
R.L. Enterprises Ratna Nagar Rajendra Shrestha

(a) Narayanghat Distributors

Year Sales
2008 3000 trey
2009 6750 trey
2010 11250 trey

(b) Ratna Nagar Distributors;

Year Sales
2008 1200 trey
2009 2000 trey
2010 4000 trey

Above given data Total Real Juice sales in whole chitwan, different years.
Year Total Sales
2008 4200 trey
2009 8750 trey
2010 15250 trey
(1 trey=30 pieces of real juice)
(Source: Distributors of Real Juice)

81
1.3 Annual sales and delivery management of Frooti juice in chitwan
according to Frooti distributors
Distributors Address Propitiator Name
Shashank trade International Narayanghat- 3 Sharda Pradhan

(a) Sales of Narayanghat Distributors as a whole chitwan

Year Total Sales

2008 15500 trey
2009 17000 trey
2010 18000 trey

(1 trey=27 pieces of Frooti)

(Source: Distributors of Frooti Juice)

1.4 Annual Sales of Delivery Management of Rio Juice in Chitwan

according to Rio distributors
Distributors Address Propitiator Name
Shurvarna Marketing Narayanghat- 3 Sujan Shrestha
R.L. Enterprises Ratna Nagar Deepak Shrestha

(a) Narayanghat Distributors

Year Sales
2008 1800 trey
2009 2500 trey
2010 5000 trey

(b) Ratna Nagar Distributors;

Year Sales
2008 1000 trey
2009 1500 trey
2010 2000 trey

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 Above given data Total Rio Juice sales in whole Chitwan, different years
Year Total Sales
2008 2800 trey
2009 4000 trey
2010 7000 trey
(1 trey=27 Pieces of Rio Juice)
(Source; Distributors of Rio Juice)

4.22 Text of Hypothesis

1. Calculation of x2 test for the independence of consumers to use soft
drinks on the basis of sex wise of 300 respondents or 100%. X2=69.7
(Annex-1)
Critical value; for 7 d.f X2 0.05=14.067
Decision – since the computed value of x2 is greater than its tabulated
value at 5% level of significant. Ho is rejected, i.e. Hi hypothesis is
accepted. So, and we concluded that soft drinks were not distributed in
equal no. of male and female.

2. Calculation of x2 test for the independence of consumers to use soft

drinks on the basis of age groups out of 300 respondents or 100%. X2 =
65.38
(Annex-2)
Critical value; for 11d.f X2 0.05= 19.675
Decision since the computed value of X2 is greater than its tabulated
value at 5% level of significance. Ho is rejected, i.e. Hi is accepted at
5% level of significant. So, and we concluded that soft drinks were not
distributed in an equal no. of age group.

83
3. Calculation of X2 tests the independence of consumers to go as purchase
of soft drinks on the basis family status. X2=77.86
(Annex-3)
Critical value; for 11d.f X2 0.05= 19.675
Decision since the computed value of X2 is the greater than its tabulated
value at 5% of significance. Ho is rejected, i.e. Hi is accepted at 5%
level of significance. So, and we concluded that soft drinks were not
distributed in an equal no. of family status.

4. Calculation of X2 test for the independence of consumers to go purchase

of soft drinks on the basis of occupation group. X2=74.72
(Annex-4)
Critical value; for 15d.f X2 0.05= 24.996
Decision; since the computed value of X2 is greater than its tabulated
value at 5% significance. Ho is rejected i.e. Hi is accepted. So and we
concluded soft drinks were not distributed in an equal no. of different
occupation.

5. Calculation of X2 test for the independence of consumers to go as

purchase of soft drinks on the basis of brands name. X2=87.6
(Annex-5)
Critical value; for 9d.f X2 0.05= 16.919
Decision; since the computed value of X2 is greater than its tabulated
value at 5% significance. Ho is rejected i.e. Hi is accepted. So and we
concluded that brand name makes the attracted to purchase of soft drink.

6. Calculation of X2 test for the independence of buyers to go as purchase

of soft drinks with view attractive advertisement different media.
X2=35.96.6 (Annex-6)
Critical value; for 5d.f X2 0.05= 11.07
Decision; since the computed value is greater than its tabulated value at
5% significance. Ho is rejected i.e. Hi is accepted. So and we concluded
that advertisement is necessary.
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4.23 Major Findings
 Market of soft drinks in Chitwan district is so good, but consumers are
very conscious about soft drinks brand and Enthuanstic.
 Coca-Cola brands are sales higher than Pepsi-Cola in the Chitwan.
 The Pepsi-Cola sales may be gradually increasing by market strategies.
 Coca-Cola factory is also there in the Chitwan and it’s shown that coke
brands are available easily everywhere in Chitwan.
 Consumers give more preference to brands but less preference to its taste
& quality
 Highly preference of consumers in brands there fore most of retailer is
interesting or sells Coca-Cola brands.
 The advertising of Coca-Cola of the TV is much more attractive than that
of the Pepsi-Cola.
 The TV media is the most popular media in Chitwan, while the radio
Nepal FM Station holds the seconds position & wall painting is the third
position respectively.
 In context of soft drinks juice Real and Frooti are found to be equally
market share in Chitwan.
 There are competitions in sells but less competition in preference in
brands, quality and taste.
 Both juice package in the disposable pack which makes easy to use
anywhere.
 Real Juice and Frooti juice both are collaboration of India. Thus, Indian
TV Media advertising are popular in Nepali Consumers.
 The market share of soft drinks juice is less than cold drinks in Chitwan.

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 CHAPTER – V
SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary
The use of cold soft drinks is increasing in Nepal as in the other countries; the
density of population has been increasing. Atmosphere has also creating hot.
The soft drinks company increase in the world day by day. The soft drinks are
readymade use which can we bye easily everywhere. In Nepal there is number
of soft drinks company which can probable Nepali consumers wants. The
government income depends upon such multinational company which sales
volume is high. This research aims at studying the marketing situation of
different types of soft drinks, brands loyal of consumer’s behaviour.
Consumer’s behaviour is important to all the marketers, who are producing
consumer’s goods; it gives knowledge about consumer’s satisfaction.

The topics, an attempt is made to study “The marketing of soft drinks” of

Chitwan is helps to those company marketers which produce sells in this stat. A
case study of Chitwan is fairly, truth and not based in different consumers
category. For the study is based on Chitwan, Mainly Bharatpur, Narayanghat,
Ratna Nagar, Rampur side. Muglin Bazaar and other side where its necessary
to research. The research is fully based on consumers, provisional stores,
family, cinema hall, and hotel and involve in different profession.

The research is not 100% sufficient but try to it’s nearly by for marketing of
soft drinks in Chitwan. For the study a sample survey was conducted with
randomly selected systematic method with potential 300 buyers, 7 distributors,
15 dealers, 100 of retailers of were taken into account for an extensive uses in
marketing buying decision of different kinds of soft drinks. The typical buyers
of soft drinks are mainly young boys and girls. A questionnaire consisting 21
questions were administered to the respondent the data obtained from them
were analyzed using percentage; simple statistical method, chi-square test, rank
correlation and charts.

86
On the basis of the field survey and subsequent, the study has found consumer
behaviours and buying decision of different soft drinks. The estimate of
demand and supply of cold soft drinks, potential users, to identify the best
choice of consumers and to identify the estimate sales of soft drinks from
distributors of Chitwan per annum. All dealers are depend upon those
distributors through out to retailers from consumers.

In total 100% the market, 54% has covered coca-cola brands, 29% has covered
Pepsi cola brands, 7% real juice and 10% frooti and other juice.

Similarly, after surveying of about 41.66% consumer take the cold drinks with
brands, 26.33% preference with taste, and 11% preference with its quality.

In this context, the advertising plays a vital role in consumers of cold soft
drinks in Chitwan, this study has also made attempt to find out that cold soft
drinks consumer are attracted with the recent advertisement and also brand
preferred of cold soft drinks. The following advertising media are found in city
like wall painting, cinema and different TV channel, meon-sign & glow sigh
and hoarding board’s etc. An extra activity to advertising of soft drinks in
Chitwan is fair and exhibition organised by chamber of commerce and
industry, and special sponsor by different game organized.

5.2 Conclusion
On the basis of the study we have under taken following conclusions can be
regarding market situation of different user of cold soft drinks in Chitwan.
 All of the respondents have frequently drinking habit because of hot area
(a high temperature) in Chitwan.
 Coca-cola brand is the most preferred brands of soft drinks in. Chitwan.
Its have large market shares that then Pepsi-cola brand and other brands
according to consumer’s point of view.

87
  Most of costumers prefer cold soft drinks according to brand name but
product, quality, price and taste are the second factor to be considered.
 There is brand loyalty in the cold soft drinks. Consumer brought
alternatives brand in absence of preferred brands in the market. It is the
cause of switching alternatives brands.
 Most of the consumers have self-decisive power.
 Consumer buying motives of brands factor effect external and internal
environment.
 Most of consumers drink once a day. They only buy only one unit of drink
at a time and they take decision during buying.
 Consumers buy soft drinks expect satisfaction of thirst; it is suitable
company beverage for other food and to join with friends.
 Coca-Cola & Pepsi-Cola are famous for male & Fanta & Merinda for
female.
 Consumers get knowledge about products of soft drinks through different
kinds of advertising media. Advertising is considered as the primary
source of information.
 Television is the most popular media for advertising and radio F.M. stands
second position similarly, wall painting, hording board and display also
becoming popular in Chitwan.

5.3 Recommendations
 Consumers are aware brands through advertising at the pioneering stage.
So manufactures are suggested to advertise motivation to their product
through in the different media.
 The marketing of soft drinks is wide. It is increasing day by day in
different parts of Nepal. Even the growth market advertising through more
believable and effective massage towards its main costumers.
 Most consumers are found brand loyal even through their loyalty is not
strong and entrenched. If they do not get the desired brand, they use

88
 alternatives brands in this case the brand loyalty is broken by the
unavailability of product is fulfils. So the marketers are suggested to give
proper attention on their distribution system.
 The result of observation and survey of the buyer’s intention motivation
also convince to the buy such drinks brands which quality, price and taste
are similar.
 In order to make advertising more effective, it is suggested that producers
should broadcast their advertising in different media. While advertising in
TV and Radio its advertising is suitable in news time.
 In the role of advertising, brand should be quite extent effective, so to
make, the role more strong other marketing Mix, variables such as
product, place and price, promotion should be forwarded soundly and co-
ordinate interaction among their as felt necessary.
 It is suggested to the soft drinks companies to control consumers
switching habit through increased regulation of product in store.
 In the accordance to the findings the study the buyers are not come same
society and disperse all the Chitwan. Appropriate marketing strategies
formulate helps the knowledge of the motives behind purchase behaviour
of consumers on soft drinks is believed to be especially helpful to the
marketer. And such marketing strategies may relate to segmentation of
markets on motives of purchase behaviour of soft.
 As greater no. Of consumer has an Intention to buy product at retail shop.
The marketer of soft drinks should try to motivate the retailers for request
as well as market share.
 At the end in this modern era, people were more health conscious out to
eat foods. Therefore it is suggestion that, which produces delicious soft
drinks, indicates in package pre-caution of soft drinks such as;
manufacturing date, advantages and disadvantages for drinks etc.

89
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 ANNEXURE
ANNEX-1

Calculation of x2 test for the independence of consumers to use soft drinks on

the basis of age groups out of 300 respondents or 100%.

HO; Soft drinks were distributed in an equal no. of age group.

H1; Soft drinks were not distributed in an equal no. of age group.

Age O E (O-E) (O-E)2 (O-E)2

E
Male 33 12.5 20.5 420.25 33.62
21 12.5 8.5 72.25 5.78
5 12.5 -7.5 56.25 4.5
7 12.5 -5.5 30.25 2.42
Female 21 12.5 8.5 72.25 5.78
8 12.5 -4.5 20.25 1.62
2 12.5 -10.5 110.25 8.82
3 12.5 -9.5 90.25 7.22
Total 100 69.76

100
E= = 12.5 d.f=(n-1) = (8-1) = 7 x2 =
8

Critical Value; for 7 d.f X2 0.05 = 14.067

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 ANNEX-2

Calculation of X2 test for the independence of consumers to use soft drinks on

the basis of age groups out of 300 respondents or 100%.

HO; Soft drinks were distributed in an equal no. of age group.

H1; Soft drinks were not distributed in an equal no. of age group.

Age O E (O-E) (O-E)2 (O-E)2

E
Under-16 15 8.33 6.67 44.448 5.34
8 8.33 -0.33 0.108 0.013
2 8.33 -6.33 40.068 4.810
3 8.33 -5.33 28.403 3.410
16-40 age 24 8.33 15.67 245.54 29.477
13 8.33 4.67 21.808 2.618
3 8.33 -5.33 28.4 3.410
5 8.33 -3.33 11.088 1.331
Above-40 15 8.33 6.67 44.480 5.34
8 8.33 -0.33 0.108 0.013
2 8.33 -6.33 40.068 4.810
2 8.33 -6.33 40.068 4.810
Total 100 65.38

100
E= = 8.33 d.f=(n-1) = (12-1) = 11 x2 =
12

Critical Value; for 11 d.f X2 0.05 = 19.675

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 ANNEX -3

Calculation of X2 tests the independence of consumers to go as purchase of soft

drinks on the basis of family status.

HO; Soft drinks were distributed in an equal no. of family status.

H1; Soft drinks were not distributed in an equal no. of family status.

Age O E (O-E) (O-E)2 (O-E)2

E
Poor 10 8.33 1.67 2.788 0.334
4 8.33 -4.33 18.74 2.250
2 8.33 -6.33 40.069 4.810
2 8.33 -6.33 40.069 4.810
Medium 25 8.33 16.67 277.89 33.36
15 8.33 6.67 44.489 5.34
3 8.33 -5.33 28.409 3.41
5 8.33 -3.33 11.089 1.331
Rich 19 8.33 10.67 113.85 13.66
10 8.33 1.67 2.788 0.334
2 8.33 -6.33 40.069 4.810
3 8.33 -5.33 28.409 3.410
100 77.86

100
E= = 8.33 d.f=(n-1) = (12-1) = 11d.f x2 =
12

Critical Value; for 11 d.f X2 0.05 = 19.675

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 ANNEX -4
Calculation of X2 tests the independence of consumers to go as purchase of soft
drinks on the basis of occupation group.

HO; Soft drinks were distributed in an equal no. of different occupation.

HE; Soft drinks were not distributed in an equal no. of different occupation.

Age O E (O-E) (O-E)2 (O-E)2

E
Businessman 10 6.25 3.75 14.063 2.25
3 6.25 -3.25 10.563 1.69
1 6.25 -5.25 27.563 4.41
2 6.25 -4.25 18.063 2.89
Service 12 6.25 5.75 33.063 5.29
5 6.25 -1.25 1.5625 0.25
2 6.25 -4.25 18.063 2.89
2 6.25 -4.25 18.063 2.89
Student 13 6.25 6.75 45.563 7.29
7 6.25 0.75 0.5625 0.09
2 6.25 -4.25 18.063 2.89
3 6.25 -3.25 10.563 1.69
Others 19 6.25 12.75 162.56 26.01
14 6.25 7.75 60.063 9.61
2 6.25 -4.25 18.063 2.89
3 6.25 -3.25 10.563 1.69
Total 100 74.72

100
E= = 6.25 d.f=(n-1) = (16-1) = 15 x2 =
16

Critical Values; for 15 d.f X2 0.05 = 24.996

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 ANNEX -5

Calculation of X2 tests the independence of consumers to go as purchase of

soft drinks on the basis of brands name.

HO; Brands makes not effective for use of soft drinks.

H1; Brands makes effective for use of soft drinks.

Brand Name of soft drinks O E (O-E) (O-E)2 (O-E)2

Names E
Coca-cola Coca cola 34 10 24 576 57.6
Fanta 12 10 2 4 0.4
Sprite 5 10 -5 25 2.5
Soda 3 10 -7 49 4.9
Pepsi-cola Pepsi 19 10 9 81 8.1
Merinda 5 10 -5 25 2.5
7-up 3 10 -7 49 4.9
Soda 2 10 -8 64 6.4
Juice Real 7 10 -3 9 0.9
Frooti, Rio and others 10 10 0 0 0
Total 100 87.60

100
E= = 10 d.f=(n-1) = (10-1) = 9 x2 =
10

Critical Value; for 9 d.f X2 0.05 = 16.919

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 ANNEX -6

Calculation of X2 tests the independence of consumers to go as purchase of

soft drinks with view attractive advertisement different media.

HO; Advertisement is no effective for buying process.

H1; Advertisement is effective for buying process.

Media O E (O-E) (O-E)2 (O-E)2

E
Radio 19 16.66 2.34 5.475 0.328
TV 37 20.34 413.71 24.83
Newspaper 12 16.66 -4.66 21.71 1.303
Wall paint 10 16.66 -6.66 44.35 2.66
Hoarding 6 16.66 -10.66 113.63 6.82
All of them 16 16.66 -0.66 0.435 0.026
100 35.96

100
E= = 16.66 d.f=(n-1) = (6-1) = 5d.f. x2 =
6

Critical Value; for 5 d.f at X2 0.05 = 11.070

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 Annex – 7
Questionnaire

Survey of Buyers Cold Soft Drinks

I am a student of M.B.S of Shanker Dev Campus of Kathmandu. I am writing

a research study on ‘Marketing of soft drinks’ consumers of Chitwan. Please I
request most of you to co-operate me by filled up this soft questionnaire, so
which makes me easy to study consumer’s views of the soft drinks. This makes
me easy to accurate and meaningful my study.

Thank you

Please filled of your full bio-data

Name; ________________________
Address; ________________________
Age; ________________________
Sex; Male Female
Marital Status; ________________________
Profession; ________________________
Education ;________________________
Family System . Jointly family; ________________________
Nuclear family; ________________________

Please tick (√ ) your choice on the box.

1) Have you ever drink cold soft drinks?

Yes
No

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2) When did you drink cold soft drinks?

(16 age) (16-40 age) (Above 40 ages)

3) Whether you have taken cold soft drinks which drinks you prefer?
Coke Fanta Sprite

Pepsi Merinda 7-up

Real Juice Frooti Other No

4) Above the mention of cold soft drinks in the market how do you buy then?

By brands

By Inspection

By Interpersonal

5) Which are your most favourite brands?

Coca-cola Real

Pepsi-cola Frooti Other Juice

6) Are you drink cold soft drinks to respect your habits of purchasing each
branded?

Coca-cola Real

Pepsi-cola Frooti Other Juice

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7) If others competing brands offer you some special deals like coupon sample
and discount etc. would you leave your favourite brand?

Yes
No

8) Which one of the following factor make you leave your favourite brand and
switch to alternatives?

Coca-cola Price activity

Pepsi-cola Advertisement

Real Juice A desire to new test

Frooti Juice None of above

Others

9) Do you already decide upon the brand that you want to buy before going to
the shop?

Yes
No

10) If you have been used only one coca-cola brand please tick, which cold
drink do you prefer among these?

Coca-cola Fanta Sprite Soda

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11) If you have been used only one Pepsi-cola brand please tick, which cold
drink do you prefer among these?

Pepsi-cola Fanta Sprite Soda

12) What do you do if your favourite brand is not available in the market?

Buy the alternatives one

Wait for the favourite one

Buy the one that seller appreciates

Search favourite brands far distant place

13) How much do you buy soft drinks usually at one time?

1 2 3 5 More

14) How many times do you take cold drinks per day?
Once a day Twice a day

Thrice a day and more

15) In where soft drinks would you expect to find?

Cold stores Departmental Store Hotel

Restaurant All of them

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16) In the broad cast of advertising of soft drinks in T.V. channel media which
one advertisement did you find better?

Coca-cola Real Pepsi-cola

Frooti Other Juice All of them

17) In Which page you most want to read in newspaper?

Front Page

Inner Page

Last Page

18) After seeing advertisement when did you buy the soft drinks?

Recently

After additional information.

Not consulted

19) What is the prime time of advertising the soft drinks you are watching in
television?

After news

Before news

Middle of news

Other time

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20) What is the prime time you are listing the advertising In radio program?
After news

Before news

Middle of news

Other time

21) except satisfying your thirst, for what other reason you buy soft drinks?

To join with friends

For entertainment

Company with other food

Fashioner to show others

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