CONSUMER BEHAVIOURREPORT FALL 2016

ASSIGNED TO:

Mr. Malik Mansoor Kabani STUDENT:

Muhammad Riaz (15330)

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Table of Contents

Dedication……………………………………………………………………………03

Acknowledgment………………………………………………………………….…04

Introduction……………………………………………………………………….….05

Meeting changes and challenges …………………………………………………..…13

Consumer research…………………………………………………………………...16

Motivation and Defense Mechanism…………………………………………….…...18

Consumer Personality……………. ……………………………………………….....23

Market Segmentation & Strategic Targeting…………………………………………25

Consumer Perception…………………………………………………………………27

Consumer Learning…………………………………………………………………...36

Consumer Attitude Formation and Change……………………………………….…..41

Family and Social Class……………………………………………………………….45

Consumers and the Diffusion of Innovations…………………………………………46

Consumer Decision Making and Beyond……………………………………………..50

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DEDICATION

This report is dedicated to people who dare to dream and have the courage to take

action in the journey to pursue being the entrepreneur of today’s marketing world,

more over we dedicate this report to the embarks of our professional careers, our

beloved families who have supported us, teachers and friends, who guided and

supported us in every aspect of our lives.

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ACKNOWLEDGMENT

We are thankful to Allah for the strengths and His blessing in completing this

report. We owe a great many thanks to all the people who helped and supported us

during the writing of this report

We send our deepest thanks to Sir Malic Mansoor Kabani for offering us a

platform where we can perform and analyze first hand consumer insights for brand

as huge as Sprite Pakistan, Sir has been accommodating enough for the post

graduate students of Institute of Business Management for their Research, Practical

approach & Personal Guidance. Not just we learned academic knowledge but

practical implications under his supervision. That enable us to thoroughly study

Sprite in regards if consumer behavior to the core.

We really appreciate the support of those who guided us in the completion of this

report.

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INTRODUCTION

HISTORY OF SPRITE

Sprite is produced by the Coca-Cola Company. Initially originating in Germany in 1959 as Fanta Klare Zitrone ("Clear Lemon Fanta")

Sprite was introduced to the US in 1961 to compete against 7-up. The name of Sprite was originated from the character named ‘Sprite boy’

created for Coca-Cola to symbolize and reinforce the brand image Coke. Sprite is a clear soda, lemon-lime flavored, caffeine-free soft drink. Sprite is available in more than 190 countries and ranks as the No. 3 soft drink

worldwide (after Pepsi and Coca-Cola). The brand is actively involved in youth programs, which are driven through the

sport of basketball. The branding tactics also change depending upon the demography and mindset

of the target audience. The slogan globally claims that Sprite cuts through thirst, giving the consumers

sudden refreshment and clears the mind to inspire fresh thinking.

COMPANY PROFILE

Sprite is manufactured by COCA-COLA Company, Sprite was introduced in Pakistan in 1972. By the 1980 sprite had begun to have large fan following among teenagers and

until today the brand is popular and among youngsters. It ranks number 2 after 7-Up in Lemon-Lime fizzy drinks category in Pakistan.

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NUTRITION FACTS

SPRITEAmount Per 100 gramsCalories 39% Daily Value*Total Fat 0 g0%Saturated fat 0 g 0%Polyunsaturated fat 0 gMonounsaturated fat 0 gCholesterol 0 mg 0%Sodium 9 mg 0%Potassium 1 mg 0%Total Carbohydrate 10 g 3%Dietary fiber 0 g 0%Sugar 9 gProtein 0.1 g0%Vitamin A 0% Vitamin C 0%Calcium 0% Iron 0%Vitamin D 0% Vitamin B-60%Vitamin B-12 0% Magnesium 0%*Per cent Daily Values are based on a 2,000 calorie diet. Your daily values may be higher or lower depending on your calorie needs.

VARIANTS:

Sprite Zero :  This sugar-free version was originally produced in the United States as

"Sugar Free Sprite" in 1974 It was renamed to "Diet Sprite" in 1983. In other countries, it was known as "Sprite Light." In September 2004, it was rebranded as "Diet Sprite Zero." Since then, it

has become "Sprite Zero (Sprite Z)". "Diet" was dropped from the product's name, to become simply "Sprite

Zero," when new logos debuted in June 2006.

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Sprite Remix :  Fruit-flavored variations first introduced in the United States in 2003. A

different flavor was available in 2004, and finally 2005. Its production has been around 11.6 billion bottles per year. The brand was discontinued in 2005, but was reintroduced into the Coca-

Cola product line up in spring of 2015.

Sprite Ice :  A mint-flavored Sprite that made its debut in Korea in 2002 as "Sprite

Blue," "Sprite Ice" in Canada, and '"Sprite Ice Cube" in Belgium in 2003. "Sprite Ice Blue" was introduced in Italy and mainland China in 2004, and in

Chile in the summer of 2005. There is also "Sprite Lemon Lime Mint."

Sprite Duo: A variation of Sprite with lemon juice and less carbonation and sugar that is available in Spain in cans and PET bottles. It was introduced in spring 2007.

Sprite on Fire: A ginger-flavored variation marketed as having a burning sensation. It was introduced in Hong Kong in 2003. This flavor also debuted in China in 2004. Available in some areas as "Sprite Finger Lemon."

Sprite Super Lemon: Introduced in Hong Kong in 2003. Sprite Dry Lemon: Not available in U.S. Sprite Lemon Lime Herb: Not available in U.S. Sprite 3G: Introduced in 2007. An energy drink. Ingredients include glucose,

caffeine from green coffee beans and guarana. Sprite 3G has since been discontinued in the UK.

Sprite Recharge: An energy drink. Chinotto: Marketed as lemon-lime soda in some countries in South America as

a replacement for Sprite (Sprite uses the name "Chinotto" in countries such as Venezuela). Its taste is very similar to Sprite.

Sprite Super Chilled: Expected as early as 2008, special packaging and vending machines were to produce ice in the bottle when it was opened.[13]

Sprite Green: Announced December 17, 2008, Sprite Green was to be sweetened with Truvia (a natural zero-calorie sweetener made from stevia).[14]

Sprite Cranberry: In October 2013, Coca-Cola announced a new limited-edition flavor called Sprite Cranberry and its diet version Sprite Zero Cranberry. It was available through the holiday until New Year's. In 2014 and

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2015, it was available again. The variant competes with PepsiCo's Sierra Mist Cranberry Splash.

Sprite 6 Mix (aka Sprite LeBron's Mix): collaboration between Sprite and LeBron James. Contains cherry and orange flavors in addition to lemon and lime.

Sprite Blast: A sweet and sour variation exclusive to 7-Eleven and sold only in 7.5 ounce single cans. It launched in the summer of 2014.

Sprite Tropical: Sprite Tropical Remix has seen a rerelease in 2015. It was released again in 2016.

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SPRITE STOCK KEEPING UNIT (SKU) IN PAKITAN:

250 ML Regular Bottle

250 ML CAN

330 ML CAN

500 ML Pet Bottle

1.5 Litre Pet Bottle

2.25 Litre Pet Bottle

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COMPETITORS

Sprite tends to be sweeter and it can easily gulp.

Sprite has no fizz Sprite is manufactured by Coca-

Cola. Sprite is high in calories. Sprite has no 100% natural flavors

as well as added colors or artificial preservatives.

Sprite relies on sodium salt. Sprite is the more lovable white

soda, ranked as the 6th most popular beverage of 2013, occupying 8% share of the beverage market.

Sprite has always exhibited a brand personality of an adventurist who seeks freedom, desires to explore the world and loves new experiences.

7up is more carbonated and has a stronger tangy taste, not easily to gulp.

7-Up has a lot of fizz 7UP drink is made by PepsiCo.

7up is low in calories 7up has 100% natural flavors as

well as no added colors or artificial preservatives.

7UP makes use of potassium salt. 7 Up didn’t even make it to the top

ten and apparently it had started losing the game back in 2000 when it occupied just 2 % of the market share.

7Up has positioned itself as the ultimate cool drink with Fido Dido.

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SPRITE 7UP

MARKETING STRATEGY OF SPRITE VS 7UP

 According

to Interbrand’s Best Global brands of 2013, Sprite holds the 69th position with a brand value of 5811 million dollars. Once again, 7 UP is missing from the list of top 100 brands.

SALIENT FEATURES OF THE DRINK - Association with the youth- Taste and Digestion benefits- Transparent means Pure is Belief - Lemon is natural- Caffeine Free soft drink- Clever advertising campaigns - Refreshingly honest and irrelevant perspective on life - Healthier than other carbonated Soft drinks

TAGLINES

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- “Mirchi Ka Tadka Sprite se Bharka”- “Maan Ki Maan”- “Pyas ko Sprite Kar”- “Sarak par Meri Chaap”- “Nimbu Soda ki Thaaa”- When thirst takes over...#SpriteYourThirst - Hold that moment…if that moment is Sprite! #SpriteYourThirst- Sprite your BBQ this Eid!- Tune your thirst to Sprite!#SpriteYourThirst- Bursting with the Sprite of life!#SpriteYourThirst

FOOD PAIRING

- Spicy Desi Food- Fast Food- Milk to make “Doodh Soda”

MEETING CHANGES AND CHALLENGES

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TYPES OF CONSUMERS:

1. PERSONAL CONSUMERS

Sprite has a big following of personal consumers as they are usually walk in customers who grab the bottle or can of sprite to overcome their thirst or to refresh them inspired with the taste or quality.

2. DISCOUNT DRIVEN CONSUMERS

Consumers who were not the frequent buyer of the Sprite are attracted due to some exciting discount offers that the company launches time by time on different occasions; ie. Ramzan. These discount offers are not only restricted to the end users but it includes special discount schemes for “Organizational Consumers” such as (Supermarkets, Restaurants, Etc.).

3. ORGANIZATIONAL CONSUMERS

Sprite has a very huge Market share as far as the organizational buying is concerned; it includes Supermarkets, Restaurants, Stop Shops and especially in universities and academies where they find their target market which is Youth from age 14-35.

4. IMPULSIVE CONSUMERS

Exciting TV ads, enchanting billboards drive random consumers to try the product. Sprite has a very strong marketing campaign and advertisement placements to attract this group of consumers and making them fall in love for Sprite.

5. HABITUAL CONSUMERS

SOME of the families have affiliation with this Product. They prefer to have Sprite with their meals, family gathering and BAR B QUE party.

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SEGMENT IDENTIFICATION

Sprite will be marketed with main focus on the consumers who not only want to drink mixture of water and carbonation but also prefer to gain some energy and revitalization of physical and mental health therefore it will be marketed as carbonated energy drink but those with more active life styles will be specifically targeted.

1. Segment NeedsSprite will be providing to both physiological needs (Hydration, refreshment and energy) and social needs (perception of a social, enjoyable drink with a sense of belonging within peer and consumer groups).

2. Demographic SegmentationSprite mainly focus on people with age range of 12 to 35 because research reveals that people with this range are one of the major consumer groups of drinks but marketing will also be carried out with target on elder people with the main aim to make the Sprite a product for all. According to family size, some of Mums and Dads buy soft drink for their families. So Sprite segments its target market to aim at those groups to purchase their products with low prices, and gain more profits.

3. Geographic SegmentationThe market is divided by location because it is assumed that the people who live in the same area will probably have similar needs and wants, All states and territories with focus on urban and metropolitan areas, both rural and urban areas.

BEHAVIORAL SEGMENTATION

Marketing is performed in response to consumer behavior and taking into account the trends in particular events and season for example in summer season by effective marketing more customers can be attracted and Sprite in the events such as sports events by sponsoring sports and players more people are attracted.

TARGETING

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Sprite has targeted young people specially teenagers and students who wants to be fresh and active throughout the day.

POSITIONING

Crisp, refreshing and clean-tasting Urban and straight forward style.

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CONSUMER RESEARCH PRIMARY RESEARCH

Information which we will collect from surveys, interviews from higher management and employees of the company would be our primary research.

The primary research objective of our study is:

-To obtain consumer insights regarding the consumption of “Sprite.”

SECONDARY DATA

Reviewing past research reports on the company and products, taking references which are required to complete our research objectives

Internal Secondary Data:

Took necessary information from the employees of coco cola Pakistan for our research objectives.

External Secondary Data

Did survey in different places in Karachi Pakistan, taking necessary data which is required our report objectives.

Reviewing newspapers, books and taking company information from internet.

QUALITATIVE RESEARCH Depth Interviews

We will take interview from higher management. We can identify the views and ideas of higher management regarding product.

Focus Groups

By reviewing and interviewing 10 employees of coco cola Pakistan to take necessary information which required for our report.

QUANTITATIVE RESEARCH Observational Research

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We will go to supermarket like hyper star, metro and imtaiz superstore to identify the buying behavior of consumers.

Surveys

Doing surveys in universities, supermarkets, and Taking necessary information from the employees

MOTIVATION AND DEFENSE MECHANISM

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INNATE VS. ACQUIRED NEEDS Sprite serves both the needs, satisfies the innate need by quenching the thirst and acquired need by giving an opportunity to socialize with friends and think fresh.

GOALS Generic Goal: Obey your thirst and Thirst quenching drink.

Product Specific goals: Consumers who prefer SPRITE with the crisp of lemon-lime over other fizzy drinks are straight forward, ambitious and stern in their believes. They are self motivated and full of esteem.

Positive Motivation Sprite is free of caffeine and food colors. It has transparency in its ingredients as well as appearance. Refreshing flavor can also be substitute as water in heat. Its fairness and transparency distinguishes it from other fizzy and colored

drinks

Negative Motivation Ignoring the ethical principles of communication and promoting street language in the advertisement has given negative influence and motivation in targeted segmentation.Negatively motivating campaign: “SEEDHA BAAT, NO BAKWAAS”

RATIONAL VS. EMOTIONAL MOTIVES

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Rational motive:- SPRITE’S crisp and clean taste.- Transparent in color and artificial additives free.- Soothing to eye packaging and branding

Emotional motive Ramzan campaign spirit and olpers Clearing the mind for fresh thinking and expression of individuality. Self-satisfaction of drinking a less harmful drink for health.

New Needs Emerge As Old Needs Are SatisfiedWhen physiological need i.e. thirst is being satisfied by SPRITE. Consumers will drink SPRITE to be socially accepted among their friends and to enjoy food on special occasions.

AROUSAL OF MOTIVES

Physiological Arousal- To stay healthy and fit caffeine free drink.- Helps in digestion when one feels sick.- Feeling of refreshment in scorching sun.- Desert scene Armeena in desert thirsty, spirit fridge.

Emotional Arousal

- SPRITE‘s campaign targeted towards youth- MANN KI MAN,- PYAAS KO SPRIRT KAR,- MIRCHI KA TARKA SPRITE SE BHARKA,- IFTAAR KO SPRITE KARO, aroused emotions of the youth. Spirit gives

individuals authority to aim for their goals and be care free about their fears.

Environmental Arousal

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This happens when consumers see billboards, broadcast and print ads of SPRITE around their environment. Advertisers evoke with the help of television ads and billboards.

A billboard of SPRITE oozing with freshness on a busy road during summers arouses the thirst of passers-by.

LED Rickshaws celebrating colors or sprite and to ignite their cravings to try this product.

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Self-Actualization

Inculcates confidence by telling the youth to follow their heart- MANN KI MAN”

Love/BelongingAcceptability in social circle of friends

Safety NeedsHelps in digestion of food causing healthy

Physiological NeedsSatisfies thirst needSatisfies thirst need

Introducing the idea of Self-actualization by asking them “KARNA KYA CHAHTY HO”

Self- Esteem

Systems of Needs

MASLOW HIERARCHY OF NEEDS

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Need of Power

Need of Achievement

Need of Affiliation

MANN KI MAN – Gives youth the power to decide for themselves

Increases Social Circle of friendsUNIVESITY OR FRESHOLOGY-Encourages fresh thinking

Trio of Needs

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CONSUMER PERSONALITY

FREUDIAN THEORYSprite has targeted a basic physiological need of thirst (Id), but compels for it to be satisfied in a socially acceptable fashion (Super-ego).

NEO-FREUDIAN PERSONALITY THEORY (Social Relationships)

Sprite targets the individuality in you, the importance of self-expression, obeying and being true to your own self.This is because its target market, which is the Gen Z, is a detached sort of a consumer, who moves away from others because they desire independence, self-reliance, self-sufficiency & freedom from obligations. This generation is also less likely to be brand loyal so it is important to keep up with their current karma.Even though they value team-work, they seek individual recognition within.

TRAIT THEORY Consumer Innovativeness

They are highly innovative through their TV commercials and always seek new choices and possibilities and willing to try out new propositions.

They are low on dogmatism which is the degree of rigidity displayed towards unfamiliar things and are willing to take risks and try new things.They have high optimum stimulation levels which mean that they are willing to take risks, try new products and be innovative.

Cognitive Personality factorsThey are visualizers and attracted by digital breakthroughs. They pick up visual cues placed in ads and are more interested in watching videos than in reading up matter which owes to their short attention spans and consider huge chunks of verbal info to be monotonous and non-interesting.They have low NC and are attracted by celebrities and wish to belong to their league

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CONSUMER MATERIALISMThey are highly materialistic and directed towards achieving and showing off their acquired possessions. They desire to acquire a lot of things rather than a simple lifestyle but this doesn’t lead to greater happiness as the desire to acquire more and more overwhelms them.

COMPULSIVE CONSUMPTION BEHAVIORConsumer’s addiction to fast food and CSD’s (Carbonated Soft Drinks) is giving rise to health issues.All of this is giving birth to a corrupt society with low moral values.

CONSUMER ETHNOCENTRISMThey are highly receptive to foreign products and accept anything which will provide them with greatest utility.

BRAND PERSONALITYSprite brings out the individual in all of us and compels us to listen to our inner voice.Sprite echoes traits such as:

Excitement (Spirited, daring to take risks, up-to-date and demanding the latest of products and services)

Competence (Reliable, successful and intelligent enough to understand what the teenagers are going through and ushering them forward to pursue their dreams)

It is thought to be: Likable Fun Young Credible Refreshing

When consuming Sprite, they are directed by their self-image which means that how they see themselves and think Sprite to be consistent with their personality and likability.

BRAND PERSONIFICATIONIf Sprite were to take human form, it would be of a spirited youngster, who is compelled to follow his dreams and be able to achieve the best of which life has to offer.

MARKET SEGMENTATION AND STRATEGIC TARGETING

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In Pakistan, Sprite is all the rage with its shrewd advertising campaigns “Man Ki Maan”, “Sprite Nights” and “Sprite ka Tadkha”, “Man ki Maan” and “Pyas ki Waat Laga” that have directly targeted teenagers and young adults who are devoted food-holics.

Criteria for Targeting Selected Segments Effectively Met?1. Identifiable:The common needs of the teenagers are technology, social media, friends, hangouts, fun but at the same time, they drive decisions, are career seekers, motivated to achieve and seek to follow their dreams. 2. Sizable:

The current population of teenagers (Who make up the Gen Z), is 23 million and growing rapidly, thus this segment is sizable.

3. Stable or Growing:The teenager population is believed to be growing fast.

4. Accessible(Reachable in terms of Media & Cost): Since this generation is technology-driven and has the highest social media accessibility, where social media is a part and parcel of their lives, they are highly accessible interims of media and cost reach ability as they are quick to respond to propositions placed on the media.

The target market needs to be identified. The target market is the current/ potential customers with similar characteristics. For ‘Sprite’, a new target market was selected to take advantage of the fact that young males drink the most soft drink. In this market, Sprite competes with other products such as Solo, Fanta based on its market segmentation in four key areas: Demographic, Geographic, Psychographic and Behavioral.

Demographic SegmentationIt is the division of the market into groups based on demographic variables such as age, gender, family size, income, education. Main focus on people with age range of 12 to 35 because research reveals that people with this range are one of the major consumer groups of drinks but marketing will also be carried out with target on elder people with the main aim to make the Sprite a product for all. According to family size, some of Mums and Dads buy soft drink for their family events, so Sprite segments its target market to aim at those groups to purchase their products with low prices, and gain more profits.

Geographic Segmentation

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The market is divided by location because it is assumed that the people who live in the same area will probably have similar needs and wants.

Behavioral SegmentationMarketing will be performed in response to consumer behavior and taking into account the trends in particular events and season for example in summer season by effective marketing more customers can be attracted and in the events such as sports events by sponsoring sports and players more people can be attracted.

Psychographic SegmentationThey share similar needs like technology, social media, friends, hangouts, fun but at the same time, they drive decisions, are career seekers, motivated to achieve and seek to follow their dreams. Their AIO: Activities: spending time with friends, being highly active on social media Interests: food, fashion, Opinions: they believe that they should be the drivers of their own lives and

any pressure put on them is counted as a restraint to their self-actualization.

Benefit SegmentationThe USP of Sprite is ‘Ultimate Refreshment’ and this is benefit is well-communicated in its advertisements.

TARGET MARKET One of the major things in marketing is to design the marketing strategies to recognize customer differences and present the offering in relation to the product to the consumers by taking into account the consumers behavioral factors in the context of consumers' perceptions, attitudes, requirements, preferences and decision making.

SEGMENT IDENTIFICATIONSprite will be marketed with main focus on the consumers who not only want to drink mixture of water and carbonation but also prefer to gain some energy and revitalization of physical and mental health.

CONSUMER PERCEPTION

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PERCEPTION

Perception is the process by which an individual selects, organizes and interprets stimuli into a meaningful and coherent picture of the world in case of sprite the perception is a refreshing drink that will kick start an individual’s after having it. University of freshology campaign is an example of it.

SENSATION

Minimum sensation that sprite uses to attract their consumers is by applying a lucrative cold sprite bottle picture mostly near parks, play grounds and on restaurants. Sensation is the immediate and direct response of the sensory organs to stimuli. A stimulus is any unit of input to any of the senses. Sprite and its arch competitor 7up continuously are contemplating on sensation application by changing their marketing campaign and sometimes their display on the bottle and on advertising.

ELEMENTS OF PERCEPTION:

The Absolute Threshold

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The lowest level at which an individual can experience a sensation is called the absolute threshold. The point at which a person can detect a difference between ‘something’ and ‘nothing’ is that person’s absolute threshold examples of absolute threshold is attached below.

Differential Threshold

The minimal difference that can be detected between two similar stimuli is called the differential threshold, or the just noticeable difference (JND). Sprite from starting has changed its bottles and can packaging in order to grab consumer attention by applying differential threshold.

Subliminal Perception

Stimuli that are too weak or too brief to be consciously seen or heard may nevertheless be strong enough to be perceived by one or more receptor cells. This process is called subliminal perception. Sprite uses this marketing technique by printing their ice cold bottle before entering restaurants or above the general stores influences consumer to buy.

This ad before entering the restaurants urges consumers to have sprite with food.

PERCEPTUAL ORGANISATION

Three of the most basic principles of perceptual organization are figure & ground, grouping & closure in the below attached advertisement of sprite Ali Zafar,

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Siddhartha, food and sprite provides continuous stimulus to the consumer and grab their attention.

Grouping

Individuals tend to group stimuli so that they form a unified picture or impression. The perception of stimuli as groups or chunks of information, rather than as discrete bits of information, facilitates their memory and recall sprite usually groups young aggressive individuals, food lovers in their advertisements. 7up also focuses on the same group by using tagline MANA LO FOOD KA LOVE WITH & 7UP.

7UP AD

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PERCEPTUAL INTERPRETATION

The interpretation of stimuli is also uniquely individual, because it is based on what individuals expect to see in the light of their previous experience ,interpretation stapled with sprite is a drink which is refreshing, tastes great when coupled with food.

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Physical AppearanceSPRITE uses a bottle green in color to portray their image as a natural fresh lime drink. Its competitor 7up also uses the same technique for their product.

• StereotypesStereotype attached with sprite is that it is drink only for young aggressive individuals. Ached with sprite is that it is drink only for young aggressive individuals.

• First Impression First impression with sprite is uses are a mandatory drink with spicy food to enhance the taste. SPICYFOOD+SPRITE=COMPLETE TASTE.

• Halo Effect Sprite using HALO EFFECT under its brand umbrella it launches sprite 3g and sprite zero which is not going good as comparable to the sprite itself.

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Faisal Town dey log, Sprite rally dey naal ek selfie ley kar bhej aur jeetley Sprite goodie bag #NimbuSodaKiThaa

CONSUMER IMAGERY

Similar to the connections Coca-Cola and Fanta have to red and orange, respectively, Sprite has “owned” green since its 1961 debut. Green has served as Sprite’s primary color in its advertising, packaging, merchandising and more.Green is classic and modern, and naturally crisp and clean. It’s never aggressive or boring, and always cool and refreshing… just like Sprite.In fact, its status among the world’s most recognized brands can largely be attributed to its signature green bottle. The bottle’s defining shape and signature “dimples” make it one of the most unique and eye-catching packages in the market

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Green is cool. “The most abundant hue in nature, the human eye sees more green than any other color in the spectrum,” leading thoughts of safety, trust, healing, refreshing & natural.

PRODUCT POSITIONING & POSITIONING TECHNIQUES

Sprite Conveys the product in terms of how it fulfills a need, it goes to position itself showcasing the innate need of quenching thirst and splatter a flavor of sparkling lemon, with the tag lines “Pyaas ki waat lagado”, “Sprite bujaye pyaas” and “Nimbu soda ki thaa”. In summers sprite seeks attention because of its refreshing attribute. The tempting water splashing billboards on busy roads grab attention of the consumers. Sprite also positions itself as a sparkling drink to go along with food, with messages like “mirchi pe lagao sprite ka tarka” and “mirchi ka tarka sprite se bharka” tactics during special occasions like Eid ul Azha, Ramadan and wedding seasons as its Pakistani culture that consumers prefer spicy food during these occasions.

POSITIONING TECHNIQUES Positioning against competition- Sprite and 7-UP both are positioning their

product around food. Sprite has now extensively positioned itself with Spicy food.

Positioning on a specific benefit- Thirst quenching is the ultimate benefit that is being offered by SPRITE (SPRITE bujhaye pyas baki sab bakwas)

Conveying a product benefit- Nimbu Soda ki Thaa....positioning SPRITE’S Lemon crisp flavor.

Taking an Un-owned Position- Introducing “Sprite chillers” by posting recipes of drinks made out of SPRITE and other ingredients.

Perceived PriceSprite establishes a specific image as a brand in the consumer’s mind in relation to competing brands via its stable and

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market compatible pricing; sprite prices itself as per the bottle company regulations in Pakistan equal to its competition.

Perceived QualityThe quality perceived by the consumers of sprite is majorly Intrinsic because people actually experience the product in terms of taste, flavor, aroma, shape, size and color etc. They consume sprite on the go as well as a regular household shared soft drink.

Extrinsic cues of sprite as a brand to its consumers are positioned via CSR activities, chaotic events (like Sprite Street Challenge), online games & giveaways, social media page engagements and interactions maintaining brand response to consumers.

Retail Store ImageCoca Cola Co, provides good packaging conditions and branded cold storage freezers as well as the branded shop label boards along with hoardings for all retailers that sell sprite, maintaining a brand image more cleaner and certain hygiene standards over Pepsi Co (7up), sprite does not cater to much smaller shops and retailers that could put the brand name under suspicion of its perceived quality regardless of minute sales cuts, also because more benefits to the smaller retailers involve a top over the competitors % cut of the retailer profit and even competitor bribery via the distribution channels.

Manufacture Image

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Sprite Can 300MLRs 45.00

Slim Can 250MLRs 30.00

Sprite 500MLRs 45.00

Sprite Zero 500MLRs 45.00

Sprite Bottle 1.5LtrRs 80.00

Sprite Bottle 2.25LtrRs 110.00

The beverages are produced locally, providing employment to Pakistani citizens and the product range and marketing reflects Pakistani tastes and lifestyle.

Brand ImageSprite is a clear soda, lemon-lime flavored, caffeine-free soft drink, produced by the Coca-Cola Company. It cuts through thirst, giving you sudden refreshment and clears your mind to inspire fresh thinking.

PERCEIVED RISK Functional Risk: That product will not perform as expected Physical Risk: Is to self & others that the product may pose Financial Risk: Is that the product will not be worth its cost Social Risk: Is that the a poor product choice results in social embracement Psychological Risk: That a poor product choice will bruise the consumer’s ego Time Risk: That the time spent in product search may be wasted if the product

does not performed as expected.

CONSUMER LEARNING

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Consumer learning is about how marketers try to teach its segments about: Where to buy How to use How to maintain How to dispose of products

And How Sprite gives a complete learning experience from pre-purchase to purchase to post-purchase.

On sprite’s bottles and cans, there are complete nutritional facts for the consumers who consume a fixed number of calories in a day, it specifies that Sprite is non-caffeinated, after consuming, the bottle/can should be recycled, they give a help-line number dedicated for consumer care, web-site address and also that it has no artificial flavors.

All of this creates a positive learning experience and builds credibility for the brand.

DISTRIBUTED LEARNINGSprite makes use of distributed learning technique and acquires different time slots on different channels to be able to reach to different audiences at different times and if not through one channel, then through another.

The Range Of Learning Situations Includes Low Level of involvement for the product: Where the consumers have no

involvement.

High Level of involvement: Where consumer have higher level involvement for product.

FOUR ELEMENTS OF CONSUMER LEARNING:

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Motivation: Unfulfilled need: thirst, need for refreshment

Cues: Visuals showing an ultimate refreshment experience and quenching of thirst

Response: Purchase of Sprite to fulfill the need.

Reinforcement: Since Sprite is successful in fulfilling its brand promise, seeing the same visuals and feeling the same need leads to purchase and consumption by consumer again.

All of the above mentioned information combined with the visuals of refreshment and thirst quenching lead consumers to feel an unfulfilled need and those who greatly feel so are driven to purchase it. Since most of the consumers feel that Sprite fulfils its brand promise of quenching thirst, consumers are driven to purchase it again.

INSTRUMENTAL (OPERANT) CONDITIONINGSprite has been an instrumental condition tool with specializing in one type category but introducing sprite lime and sprite zero does gave it a classical conditioning too.

STRATEGIC APPLICATIONS OF CLASSICAL CONDITIONING

Repetition: Sprite has been a very active brand in terms of cues and advertising and repetition of its ATL and BTL has kept its consumers from forgetting the brand.

Stimulus Generalization: Sprite lime and classical conditioning example of product having same features but slightly different aspect to make it unique.

Stimulus Discrimination: Sprite Zero has transparent bottle and colors making is discriminative stimulus for consumers and stand out for customers. Sprite has utilized the concept of stimulus discrimination by producing variants within the umbrella of Sprite which are Sprite Zero and Sprite 3g to provide the consumers with choices within the same Sprite brand to avoid consumer switching.

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LEARNING THEORYFor most consumers, Sprite will be a behavioral learning experience which is results of exposure to information and stimuli. When consumers are exposed to ads of Sprite, they’ll learn to respond to them (Since Sprite is fulfilling its brand promise)For the health conscious consumers however, it might be a cognitive learning experience which they’ll undergo after processing all the nutritional facts, ingredients etc.

IMPLICATIONS OF BEHAVIOURAL LEARNINGSprite makes use of classical conditioning to elicit consumer response. The stimulus is thirst and refreshment and response is consumption of Sprite to quench the thirst. So thirst and need for refreshment reminds of Sprite. Their University of Freshology, pyaas ki waat laga and a lot other campaigns are directed at reinforcing this message.Instrumental conditioning is this that the brand which performs is learnt. Since consumers feel Sprite fulfills its brand promise of providing refreshment and quenching thirst, thus Sprite is learnt in relation to thirst. This means that thirst reminds of Sprite.

Reinforcement: Sprite makes use of negative reinforcement since it shows people in situations where they’re unable to respond to the situation at hand because are irritated due to the summer heat, had spicy food and need a refreshing drink to put off the burning caused by the spices, and they show how by consuming sprite, you made the best of the situation or in other words, they show Sprite as the hero or savoir in their ads.

Extinction and Forgetting: Sprite continuously holds activities and events, one of the most popular ones was the one stemming from the ‘Pyas ki waat laga

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do’ campaign of Sprite which showed a fun summer sport of ‘fly-boarding’. A contest was held in college and universities all across Pakistan, the winner of which would get a chance to do fly-boarding in Dubai.

Another campaign of Sprite digital campaign; “KARNA KIA CHAHTAY HO/WHAT DO YOU WANT TO DO?” to energize the youth around us, inviting them to break free from a world of norms and do what their heart tells them to do. Thus through giving the target market what they seek, Sprite makes sure it doesn’t face extinction and forgetting.

Involvement: Sprite has kept its involvement high in consumers by repetition of endorsement and advertisements, Introducing University of Freshology, Sponsoring different events to create hype and goodwill.

Measuring Involvement through AdvertisementsOne of the questions in our questionnaire on Sprite was ‘Do you remember the slogan? If yes, write it in the box below’ This question revealed to us how engaging Sprite ads are for consumers. Since 40% of the respondents remembered the slogan, Sprite has near average engagement through its ads.

CELEB ENDORSEMENTSSprite endorses celebrities like Meesha Shafi, Armeena Khan who are popular and aspired among teens. This brings out Sprite as an authentic youth brand and one which they can associate with.

AIDED VERSUS UNAIDED RECALLOne of questions in the questionnaire was write three soft-drink brands in order of your preference. This was an unaided recall question and the number of times Sprite was quoted is the unaided recall for Sprite. 64% quoted Sprite but only 20% put it as their first preference. This shows unaided recall for Sprite is high. Aided recall questions were like ‘how often do you consume Sprite’, ‘How often do you see ads of Sprite’ etc.Most consumers say they see ads of Sprite often and majority said they drink Sprite rarely. This shows that brand recall is high but actual consumption is low.

BRAND LOYALTY

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A successful implementation of consumer learning with combination of value for money and satisfaction of needs and wants marketers are have gained a pattern of consumer behavior where consumers become committed to brands and make repeat purchases from the same brands over time. Loyal customers consistently purchase products from their preferred brands, regardless of convenience or price.

BRAND EQUITYSprite being owned by the giant Coca-Cola group has gained a lot more Brand equity creating value to the entities name going hand in hand brand loyalty. It is a well known and trusted drink.

CONSUMER ATTITUDE FORMATION AND CHANGE

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This chapter is focused on the impact of attitude on consumer buying behavior. We have taken some information through focused groups, interviewed sessions and interpretation done by us.

TRI-COMPONENT MODEL OF ATTITUDE

1. Cognitive: Sprite is known for as the best lemon-lime soda. Sprite is a colorless, clear, lime flavored, non-caffeinated cold drink. It immediately differentiates itself from other cold drinks which are mostly colored.

2. Affective: According to the mind of consumer. Consumer feels that sprite is known as refreshing drink. An ideal drink for people of all ages and for all events such as an ideal drink for youngsters, families, parties, social gathering, sports etc. Nowadays mostly used after eating spicy food.

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3. Conation: This shows us the repeating purchases and buying behavior of sprite.

ATTITUDE TOWARDS OBJECT MODEL

Attitude is function of evaluation of product-specific beliefs that sprite is known as the refreshing drink with non-caffeinated cold drink. It relaxes the consumer and refreshes them. This attitude translates into sales of Sprite.

ATTITUDE FORMATION

With our particular research regarding this product the result of personal experience of this product Sprite. After when consumer drinks sprite. Consumer feels like he/she is refreshed which creates a positive attitude is towards brand. According to family influences mostly sprite is used in occasions, parties and social gathering. Also, recently it is believed that black drink is hazardous to health which is causing increase in consumption of white drink.

Sprite is also known for the wide campaign product. Sprite is all the rage with its shrewd advertising campaigns “Man Ki Maan”, “Sprite Nights” and “Sprite ka Tadkha” that have directly targeted teenagers and young adults who are devoted food-holics.

It endorses celebrities like Meesha Shafi, Ali Zafar, Siddhartha Malhotra and Shan Pollack who are highly popular among youth and is considered to be fun, hip and popular, characteristics in line with those of Sprite.

All of the above combined, creates a positive attitude for Sprite.

MOTIVATIONAL FUNCTIONS

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1. Utilitarian Function : Sprite is known as the utility of refreshing cold drink and quenching thirst.

2. Value Expressive Function : Sprite shows us the refreshing drink for adults, students, cool. Music lover and desi food lover which make them all motivated by providing aspiration and confidence of this brand.

3. Knowledge function : It Sprite is not available what should I do, Should I buy 7up or not. What should we as consumers do?

ATTITUDE CHANGE

Changing relative evaluation of attributes:

Soft drink consumption has increased substantially over the last 50 years and it has been established that people have large amounts of soft drinks regularly. Caffeine is a stimulant that is found in soft drinks. In large amounts, can have detrimental effects on your health but it also has numerous benefits. Caffeine stimulates your central nervous system, helps breakdown fatty acids in your liver, boost your mood and alleviate headaches. Carbonated water is a primary ingredient of soft drinks.

Changing brand beliefs

Sprite particular cold drink is known for as the non-caffeinated cold drink product. Also, their tagline ‘PAYAAS KO SPRITE KAR, NIMBU KI SODA is a hint at that other drink might provide refreshment, but Sprite by far provides THE BEST and absolute refreshment drink.

In the rest of the world except Pakistan there are a lot of other attributes have been added to Sprite super lemon, dry lemon, green, cranberry, 6mix, remix etc. While if you compare Pakistan, these are some of variants in Sprite

1. Sprite Zero, 2. Regular Sprite 3. Sprite 3g,4. Sprite in 250ml, 500ml, 1 liter, 1.5 liter and 2,25 liters 5. Tin Pack of 330 ML

Sprite is majorly marketed as a refreshing drink for its consumers. It uses the color green for its packaging which is the color of plants, trees or greenery. It relaxes the consumer and refreshes him.

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PERIPHERAL ROUTE TO PERSUASION

Sprite is a high involvement product, launching advertisements like with celebrates like Ali Zafar, and Siddhartha Malhotra “Mirchi Ka Tarka” which makes youngsters more motivated and inspirational towards brand. In the ad campaign Ali Zafar takes Siddhartha Malhotra on a Lahore tour where they taste the best Lahore food and on top of it add the Sprite ka tarka to it.

CHANGING BELIEFS ABOUT COMPETITORS’ BRANDS

Sprite has always exhibited a brand personality of an adventurist who seeks freedom, desires to explore the world and loves new experiences. What first started with just a thirst quencher, Coca Cola’s white soda now poses itself as a no-nonsense, refreshing drink.

However, since its inception 7Up have positioned itself as the ultimate cool drink with Fido Dido as its universal mascot. In recent years, the lemon-lime beverage by PepsiCo revised its marketing, positioning it as a perfect companion for spicy food.

FAMILY AND SOCIAL CLASS

CONSUMER SOCIALIZATION

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Since the objective market is for the most part the young, youths have a tendency to depend more on companions, for example, companions and schoolmates, this is the focal topic of Sprite-hanging out.

STAGE OF FAMILY LIFE-CYCLE

Sprite is chiefly gone for individuals in the principal phase of their family life-cycle, which is the bachelorhood. Freedom is the most basic phase of the family life cycle. As you enter youthful adulthood, you start to isolate sincerely from your family. Amid this stage, you endeavour to wind up distinctly completely ready to bolster yourself inwardly, physically, socially, and fiscally. You start to create one of a kind qualities and attributes that characterize your individual personality. Figure out how to consider yourself to be a different individual in connection to your unique family-guardians, kin, and more distant family part in which they have constrained duties and money related commitments so they can spend on home bases and recreational exercises with companions.

SOCIAL-CLASS

Sprite is devoured by the rich and in addition poor people. So it doesn't have a place with a specific social class. This is the point of each brand, to be devoured by every single social class. A few advertisements however demonstrate scenes of fun and entertainment which remains constant for the upper-lower and upper-middle privileged societies like their promotion demonstrating the fly loading up game. Likewise since it prompts quick need satisfaction, which is revitalizing and refreshment, the poor can't bear the cost of a Sprite each time they feel parched.

GEO-DEMOGRAPHIC CLUSTERS

Sprite has geo-statistic bunches which is urban occupants in their adolescents.

CONSUMERS AND THE DIFFUSION OF INNOVATIONS

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Sprite, as one of the leading brands in the category of white drinks, is strenuously working over innovation in order to axe its competitor 7up. Sprite zero, sprite 3g, transformation of cane from thick to thin are all the examples of innovation.

DIFFUSION PROCESS

1. INNOVATION

Product-oriented definitionsThis approach focuses on the features inherent in the product itself and the effects these features are likely to have on consumers’ established usage patterns. Sprite in this term has distinguished itself as lime drink as its core feature.

Continuous innovation: Sprite continuously involved in innovation some time in its feature like positioning as an energy drink under the umbrella of sprite 3g.

Dynamically continuous innovation: Basic purpose behind sprite was to quench the thirst with lemon refreshing drink. But sprite dynamically continuously innovated itself by omitting sugar in the form of sprite zero.

Product characteristics that influence diffusion All products that are new do not have equal potential for consumer acceptance. Some products seem to catch on almost overnight, whereas others take a very long time to gain acceptance. Sprite 3g was amongst these inventions but couldn’t cope up the consumer’s need that’s why it has been discontinued from the Pakistan market.

Market-Oriented

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A market-oriented approach judges the newness of a product in terms of how much exposure consumers have to the new product sprite through social media, by hoarding and sometime in the form of sprite cricket nights reach their consumers out to ensure the maximum output.

The Innovation Product Characteristics

1. Relative advantage: The degree to which potential customers perceive a new product as superior to existing substitutes is its relative advantage consumers in Pakistan are almost every quarter being persuaded to think about the relative advantage sometimes by slogan “MIRCHI KA TARKA” sometimes by ad like “OLPERS DOODH SODA WITH SPRITE”

2. Compatibility : The degree to which potential consumers feel a new product is consistent with their present needs, values and practices is a measure of its compatibility SPRITE’S elevating sales depicts it promise keeping with its consumer.

3. Complexity: The degree to which a new product is difficult to understand or use, affects product acceptance. Clearly, the easier it is to understand and use a product, the more likely it is to be accepted sprite 3g in the presence of energy drinks like red bull was complex for users to digest that’s why couldn’t prosper in that category.

2. THE CHANNELS OF COMMUNICATIONHow quickly an innovation spreads through a market depends to a great extent on communication between the marketer and consumers sprite uses every channel for its product communication like TV, social media and word of mouth through hoardings. Sprite NIGHT CRICKET campaign depicts its word of mouth communication and likewise TV ads and Social media campaigns are also parallel.

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3. THE SOCIAL SYSTEM

In order to target more consumers with a similar sort of mind marketer target social system to grab the maximum out of the time sprite zero targets the social system of those people who are mostly curious about their health and fitness. Through sprite night cricket campaign sprite targets people who are young energetic and sport lover through social system marketer aims to target more people through word of mouth.

4. TIME

Time is the backbone of the diffusion process sprite is always very vibrant about hitting the right time olpers doodh soda with sprite was aimed to target people who are seeking refreshment after Iftar in Ramzan was hitting exactly at right time

At the start of summers consumers are continuously been hitting by several ads was exactly like bowing the arrow in the right time.

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STAGES IN THE ADOPTION PROCESS

1. Awareness: sprite creates awareness through hoardings, social media, mass gathering and seasonal campaigns.

2. Interest: After creating awareness people starts taking interest in the product just like after creating awareness of MIRCHI KA TARKA marketer persuade a consumer’s interest that sprite tastes good with spicy food.

3. Evaluation: Consumer evaluated the campaign and went to try the sprite with spicy food and evaluated that sprite and spicy food are parallel.

4. Trial: After the campaign of sprite doodh soda consumer went on trial basis and some find it fantastic are using that still.

5. Adoption (Rejection): Sprite is largely adopted by the consumers, indicators is their continuously elevating sales.

CONSUMER INNOVATORS

This can be defined as the relatively small group of consumers who are the earliest purchasers of a new product sprite 3g was initiated marketer targets this group and through word of mouth it reaches out to maximum people for example new bottle of sprite 3g which changes its color as it gets empty targets the innovator and as an opinion leader they target the maximum out.

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CONSUMER DECISION MAKING AND BEYOND

LEVELS OF CONSUMER DECISION MAKING

1. Routinized Response Behavior

Sprite consumers possess routine response behavior, as they repeatedly buy the same drink based on their past experienced, Brand recognition plays a large role in consumer routine response behavior, it is also directly proportional to the performance of the product.

MODELS OF CONSUMERS: VIEWS OF CONSUMER DECISION MAKING

1. An Economic View

Keeping in view this decision-making model sprite has a very firm strategy as the drink is very economic friendly, it has been consumed by almost every class (Poor, Middle class & Upper class). Even if the consumer has very little information or no information they can easily make a decision to buy the drink due to its price factor.

2. An Emotional View

This model has been used by Sprite through its ads campaigns where they always connect with the emotions of youth with different taglines and ideas which drives them to select the drink that understand their emotions.

Karna Kia Chatay Ho

Sprite Pakistan launched a video which was made after the realization that everyday young Pakistani students go to pursue their careers and Sprite wanted to know how many of them actually follow their dreams and how many don’t. So, they asked few people about #KarnaKiaChahtayHo?

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PRE-PURCHASE SEARCH

Sprite has made it very easy for its consumer when it comes to pre-purchase search before buying the product, all the information regarding ingredients and company profile is easily available and reachable on internet at their website.

Also, the ingredients are mentioned on packaging of product so that a consumer can also review all the information before deciding to purchase.

Information is also transferred through billboards, pamphlets and other media.

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EVALUATION OF ALTERATIVE

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LEMON LIME SOFT DRINKS

EVOKED SET

Sprite

7 Up

Inert Set

Gourmet Lemon Up

Inept Set

ZAMZAM LEMON

CONSUMER DECISION RULES

Decision Rule Mental Statement

Compensatory rule

Some Consumers Select Sprite despite they know that the soft drinks are not good for health but still the Taste and digestion factor overweigh the bad characteristics of drink

Disjunctive rule Some Consumers select sprite just because they like the taste

Lexicographic ruleYouth has a great connection with this drink and chose this drink as a social status which suits their personality

Affect referral rule

Sprite has a better rating as compared to 7 Up on many web sites, many consumers who make decision under this rule they also get attracted towards Sprite

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OUTPUT OF CONSUMER DECISION MAKING

Trial purchases

Based on Ads and other information available on web site Consumers can easily go for trial purchases and they can easily start with Smallest SKU available which is very economical and affordable for almost every social class.

Repeat purchases

Once the taste is developed consumers go for repeat purchases, in case of sprite they have a huge amount of repeat purchases.

Post purchase Evaluation

Depends a lot on the experience of the consumer with regards to the products, some consumers have a great experience with drink they find it tasty and refreshing and has neutral feelings, some of them has an extra ordinary experience which creates Positive Disconfirmation and some of them finds the performance of product below the expectation resulting negative disconfirmation.

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REFERENCES

1. Schiffman, Leon, Leslie Kanuk, and S. Ramesh Kumar. Consumer Behavior. Tenth ed. 2015.

2. Coca-cola Journey. (n.d.). Retrieved July 22, 2015. http://www.coca-colajourney.com.pk/brands/coca-cola

3. The Soda Factory-Sprite. (n.d.). Retrieved July 22, 2015, from

http://people.cs.pitt.edu/~mehmud/cs134-2084/projects/Team7/sprite.htm

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4. http://www.sprite.com.pk/en/home/

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