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|Title: ||The study of consumer's attitudes and behaviors towards carbonate soft drinks|
|Authors: ||Arunee Nakmongkol|
|Keywords: ||The study of consumer's attitudes|
behaviors towards carbonate soft drinks
|Issue Date: ||2009|
|Publisher: ||Bangkok University|
|Abstract: ||Thai Carbonate Soft drinks market
In Thailand, the carbonate soft drink is a huge part of the total drink market,
representing 43% of the total share of throat in the soft drink category, for a total value
of THB 109 billion.
The growth of the sector is low, estimated to 3% by the Euromonitor, in a
market dominated by only 2 key players representing between themselves 84% of
market share, namely Thai Pure Drinks Ltd (coca-cola) with 45% market share and Sern
Suk (Pepsi) with 39% market share as of 2007.
Challenges of carbonate soft drink market: new trends - products
Growing concerns over obesity, diabetes and overall evolution in health
awareness have lead to a very strong development of the health and wellness trend
amongst developed countries’ consumers. This trend is now reaching Thailand and
means a new look at the nutritional benefits of drinks, such as green tea, and a
questioning in the sugar contents of soft drinks.
Challenges of carbonate soft drink market: new trends – distribution
Another evolution of the Thai market over the last 5 years that has a profound
impact on the drink market overall, and the carbonate soft drink in particular, is the
revolution of the distribution, as seen by the disappearance of traditional distribution
and the new dominance of supermarkets and local convenience stores. Such an
example of this change is the massive growth of 7-Eleven, with its plans to open 500
new stores every year for the next coming years. Currently controlling over 3,500
outlets nationwide, strategically to maximize its reach of the population, and therefore
enhance consumptions opportunities, 7- Eleven is fast emerging as a key distribution
partner that is more and more able to shape manufacturers offer to fit its customers
The consequences of this situation for the soft drinks markets players are that
growth can only be gained on the competitors via new products launches and / or by
strategic control of distribution channels to reach the consumers.
As a result, the underlying key issue is that consumer behavior insight in terms
of taste and shopping patterns are vital elements of the strategy of the drink market
Underlying Theory of drinking behavior
The literature review has explored the different elements that compose customer
behavior. These elements will provide a better understanding of what is meant by
customer behavior. Combined with Maslow’s hierarchy of needs, 6 key drivers for
understanding customers’ behavior and needs when analyzing their drinking habits have
The combinations of Health, Thirst, Affordability, Convenience, Imagine and
Status and Sociability will the factors that will trigger the motivation and the purchasing
Gathering the research Data
The research instrument used to collect primary data for this study is a questionnaire.
The questionnaire is designed in English and translated to Thai language, the research
questions are designed according to conceptual framework for answering the main
objectives of the study.
The Thai consumers appears to be a young male, aged 15 to 30 years old, with an
average drink consumption frequency of 2 to 3 times per week. His favorite drink is
Coke classic. He is a consumer that is highly susceptible to trying new products; he is
overall brand conscious, health conscious and price sensitive.
Going beyond this first picture, the analysis shows that there are some clear
distinction in attitudes and expectation between genders, ages and finally urban and
Female consumers show the strongest interest in carbonate fruit juices, and show the
highest level of interest in low sugar drinks.
Urban consumers show the highest level of interest in lower sugar drinks, they are
less price conscious and more likely to spontaneous, unplanned purchases. They are
individual drinkers who look for refreshment.
Countryside consumers show less interest in low sugar soft drinks. Their purchases
are usually planned, and drinks are purchased for family consumption, most likely with
meals. They are brand conscious and more price conscious than their urban counter
The Thai consumer is not yet as sophisticated as the global drinker presented by the
study. There is a clear division between the urban, more health conscious and more
image driven consumers and the countryside consumer, who is more brands and price
From the data gathered in the study, 2 trends have been identified amongst the Thai
consumers suggesting interesting opportunities for new products development. Theses
trends are carbonates fruit juices consumption and healthier lifestyle aspiration.
The carbonate soft drinks manufacturers have overall strategic opportunities in
order to keep their market share and retain customers. They start with specific branding
and communication to a longer term approach of new products development specifically
targeted at different segment of their consumers in order to answer their specific needs.|
|Description: ||Independent study (MBA)--Graduate School, Bangkok University, 2009|
|Subjects: ||Consumers--Attitudes--Case studies|
Consumer behavior--Thailand--Case studies
Soft drinks--Thailand--Case studies
Soft drinks--Marketing--Case studies
|Advisor(s): ||James, Paul TJ|
|Appears in Collections:||Independent Studies|
Independent Studies - Master
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