MARKET RESEARCH PROPOSAL ON PEPSI $-$ CAF$$ CHINO

Research Proposal:

PROBLEM DEFINITION:

PROBLEM DEFINITION Pepsi, the most popular soft drink in the country, launched its new variant Pepsi Caf$$ Chino. However, this variant is not getting positive feedback. The paradox facing these beverage companies is that in spite of global and Indian consumers showing preferences for new and adventurous flavors the cola giants have not been able to get their concoction right till now. Also with Caf$$ Chino, Pepsi tried to win back GenNext audience, which has increasingly gravitated towards the Baristas and Caf$$ Coffee Days in the neighborhood. Seemingly the issue is not only launching a new flavor which finds a mass acceptance but also creating third places $($like coffee shops and tea bars$)$ which will help to put these companies on a roadmap from being a mere brand in the clutter to being an experiential brand.

Another issue which the beverage companies have to look into is that whether they can move beyond trying new flavors in the carbonated segments towards experimenting in other segments like cold tea $($Lipton Ice Tea$)$ or cold coffee $($ Nescafe$$s Caf$$ Frappe$)$ or juices $($Pepsi$$s Tropicana$).$

RESEARCH OBJECTIVES:

To identify the upcoming trends in the tastes and preferences of Indian consumers in the beverages market and determine consumer purchase intentions for the new flavors proposed by the research. To ascertain the feasibility of Pepsi as an experiential brand.

SECONDARY OBJECTIVES:

To identify the favorite flavors across various age groups in beverages, amongst Indian Consumers In carbonated drinks In Non$-$carbonated drinks To determine the significance of various factors influencing their choice of flavors like Aroma After Taste Health Consciousness $($Sugar$/$Fat Content$)$ Intensity$/$Strength of the Flavor To gather consumer insights about the taste aspect of beverages Use of more familiar, classic flavors and ingredients Use of less familiar, exotic flavors and ingredients Significant integration of sweet and savory flavors

SECONDARY OBJECTIVES:

To find out the willingness of the consumer to try out new flavors in both carbonated and non carbonated drink To identify the new flavors, which can be easily converted into salient products To find out the consumer insights on new beverage categories that Pepsi can venture into like teas, coffees, variants of juices, alcoholic beverages. To determine through qualitative research, the best way to establish Pepsi as an experiential brand and how to entice the youth, who have shifted to coffee bars, back to Pepsi. The various options which can be looked at are: Vending machines at strategic locations in all major cities $($e$.$g$.$ Lipton$$s tea vending machines$)$ Exclusive Pepsi outlets or beverage bars with the entire range of its beverages $($e$.$g$.$ Caf$$ Coffee day$)$ Co$-$branding with major brands like Pizza Hut to sell the new and more adventurous variants of Pepsi targeting the urban youth. SECONDARY OBJECTIVES

RESEARCH DESIGN:

Our exploratory research will be in following steps: Focus group discussions will be carried out to evaluate the various options related to Pepsi as an experiential brand. Exploratory research in the form of secondary data analysis of mature and developed markets will be performed. Pilot surveys will be done further through questionnaires to get the most likely salient flavors and other preferences as mentioned in research objectives. Descriptive Research $$ The previous exploratory research will be followed up with descriptive research in next phase with larger and more representative samples in the form of caf$$ shops, restaurants and mall intercept surveys

DATA COLLECTION & SAMPLING:

Sampling Unit $$ Both male and female across $3$ age groups i$.$e$.8-16$ years, $16-25$ years, $25-35$ years. Sample Size $$ For each focus group discussions $8$ people will comprise each group. There will be $10$ focus group discussions in Mumbai, New Delhi, Chennai, Kolkata, Bangalore, Hyderabad, Pune $,$ Chandigarh, Lucknow and Jaipur $.$ For pilot survey a sample size of $50$ each in $4$ metros will be used and then for descriptive research we will survey a representative sample size of $3000$ across all major cities. Sampling Procedure $$ We will use C onvenience and Judgment Sampling.

CONTACT METHODS $$ Personal interviews through questionnaires and Focus group discussions will be done. DATA COLLECTION & SAMPLING

DATA ANALYSIS:

Percentage analysis $$ what percentage of customers would want to try a new flavour variant $?$ Central tendency$-$The average no$.$ of customers who would go for a non$-$carbonated version of Pepsi Caf$$ Chino $.$ Regression analysis$-$ we will analyse the relationship between no$.$ of customers who would want to go for carbonated drink & no$.$ of customers who would want to go for non $-$ carbonated drink DATA ANALYSIS

VISUALIATION OF RESULT:

Identifying three new salient flavors for carbonated soft drinks segment. Identifying three new salient fl