Marketing research proposal Essay Example | Topics and Well Written Essays - 2000 words - 1

Marketing research proposal - Essay Example It appears that this group is consuming other soft drinks in large quantities and is attracted to buying drinks for reasons other than quenching thirst. This report will outline how Pepsi-cola should conduct their research using qualitative and quantitative techniques in order to understand the current market trends. This will enable the brand to capture a larger share of the market. In Australia Pepsi competes with its main rival Coca Cola for a share of approximately $3.8Billion. It is estimated that market will continue to compound annually until 2016 by 2.5 percent. More recently market dynamics has changed with the introduction of a number of new healthier and trendy beverages. People are shifting to water and fruit drinks since these are perceived as healthier drinks. Energy drinks on the other hand are gaining popularity due to increase in their advertisement as alternative drinks. These lifestyle and behavioral changes where people are gradually shifting to taking drinks that they perceive to be healthier and trendy have adversely affected the overall sales of the Pepsi cola soft drink product line as illustrated in figure 1. As illustrated in figure 2, the largest consumer group for Pepsi is the 35-50 year old segment, however over the last ten years this group has declined, while the 50-60 year old group is showing increases. On the other hand the 18-35 year old segment has steadily declined. In other words Pepsi’s customer base is declining because of poor adoption rates in the youngest group and changes in the older group’s consumption behaviour. The question that Pepsi’s management faces is on how to reverse the decline in sales. Is it to change the advertising/communication strategy or to develop a new product that will capture the market change, that is, to produce a drink that people will perceive as healthy and