Perception Of Urban Consumer of Bangladesh about Aquafina over MUM

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North South University

Course Title: Market Research

Course Code: MKT 470.2

Topic

Urban Consumers Perception on Aquafina Over MUM

Submitted To

Mr. Syed Kamrul Islam

Instructor of MKT 470

School Of Business, North South University

Submitted By

Ajeyo Patranabish 1120240030

Md Mahmood Hossain 1120 169 030

Sirat Shahriar Ali 1120 014 030

Anisul Islam 1120 710 030

Submission Date: 12.08.2014

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Acknowledgement

At first our gratefulness goes to Almighty Allah for giving us the strength and ability to

complete this report. You have made our life more bountiful. May your name be exalted,

honored and glorified.

We also express our gratitude to our respected teacher Dr. Tamgid Ahmed Chowdhury

Director, Marketing Department.

With due respect, we express our thankfulness and appreciation to Mr. Syed Kamrul Islam our

course instructor for his inspiring valuable guidance, suggestions, encouragement and

presentation throughout the semester. Without his proper guidance it would be impossible to

make this report.

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Table of Contents

Introduction 3

Research Objective 3

Research Methodology 3

Secondary Data Analysis 4

Hypothesis 4

Scope 4

Limitations 4

Descriptive Statistics 5

Primary Data Analysis 7

Conclusion 13

References 14

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Introduction

Contaminated water is one of the major problems in the urban areas of Bangladesh. A lot of

people use mineral water as option of safe drinking water, especially those who spent maximum

time of the day outside their home (Ahmed, 2013). It is also a fact that people with low income

range do not want to spend money on mineral water even though it costs only fifteen taka for

half a liter. So, mineral water is used maximum by lower middle or middle class to upper class

people. Due to the problem of water contamination, mineral water has a large market in

Bangladesh. MUM is the pioneer of mineral water in Bangladesh and it is the market leader.

There are other competitors like Pushti, Jibon, Pran, Fresh etc.

Research Objectives

In this research we will try to emphasize on how consumer see Aquafina as their choice of

mineral water bottle. There are consumers who always prefer MUM in our country. But as

Aquafina is new in the market and it is from the same brand which makes Pepsi, does it really

effect the consumers’ perception on MUM?

This research on a broad aspect will try to answer these questions

1. How consumers of Bangladesh see PepsiCo as a brand over Partex?

2. Do the consumers really care about a brand when it comes to choosing a brand of

mineral water?

3. Does the use of a global reputed brand give a sense of security to consumers when it

comes to mineral water?

Lastly, the project if done as per guidelines provided, will also secure us better grades.

Research Methodology

We have collected both primary and secondary data. For collecting primary data we are

planning to survey at least 100 consumers. We will survey the urban consumers who are middle

class and above. We want to have a normal distribution that’s why we will survey both

university students and office going people who actually consume mineral water.

For the secondary data we will look into positional strategy and acceptance level of Aquafina

in other countries. Moreover we will try to look into other global brands and their positioning

in other countries. For the secondary research, we plan to use the resources of the web- articles,

blogs, journals, databases, academic websites, social media sites and other media.

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Secondary Data Analysis

According to Bangladesh Tradeinfo, MUM drinking water, a product of Partex (PBL) is a well

reputed brand in Bangladesh . Recently a new competitor came into the market under the brand

name Aquafina (Wichita, 1994). Aquafina is also a product from the reputed global brand Pepsi

Co (Bella, 2007). Within a very short time it has grabbed the attention of the target market due

to its promotional and positional strategy in the major events like ICC world T20 and Asia Cup

2014.

With this research we want to measure the consumers’ perception about Aquafina as a mineral

water brand over MUM as Aquafina is backed by a global brand like PepsiCo.

Hypothesis

H1: Higher income ranged consumers assume a prosperous future of Aquafina in the mineral

water market of Bangladesh

H2: International tagline of PepsiCo is creating more interest among consumers towards

Aquafina

H3: Preference for MUM is dependent on gender

H4: The future of Aquafina is dependent on the perception of PepsiCo, present market

condition of MUM and an international tagline

H5: Preference for Aquafina is dependent on gender

Scope

1. This research will set up a base for us to carry out researches for big corporations in the

near future.

2. It may help us learn more about change in drinking water trends in urban areas of

Bangladesh.

Limitations

1. We are not professionals in case of conducting a research

2. Interviewing different consumers may be wearisome.

3. There may be some chance of error in statistical data input.

4. Outcome of the research may not be perfectly suitable for the real market as the sample

size is too small compared to the size of the company and their market share.

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5. On this time frame of two months we tried to be as stratified as possible but due to time

constrains it did not go in the way we wanted.

Descriptive Statistics

We tried to maintain a stratified sample by surveying different age groups, occupation class

and income range. As our research is based on the urban people so we surveyed urban people.

Mineral water in our country is basically consumed by students and professionals as they

remain out of their home all day. About 64% of our sample were students, 29% private job

holders, 3% public service holders, 2% are teachers and rest were miscellaneous.

Statistics

Gender of the

respondents

Income of the

respondents

Occupation of

the

respondents

Age of the

respondents

Educational

background of

the

respondents

N

Valid 100 100 100 100 100

Missing 0 0 0 0 0

Mean 1.23 1.65 1.49 2.14 2.61

Median 1.00 1.00 1.00 2.00 2.00

Mode 1 1 1 2 2

Std. Deviation .423 1.132 .823 .472 1.180

Variance .179 1.280 .677 .223 1.392

Minimum 1 1 1 1 1

Maximum 2 5 5 4 5

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The above pie charts show that we tried to be as stratified as possible to get into the mineral

drinking consumer market. Though we expected more female respondents but we managed 23

% of our respondents as female and rest are male. We got two months for the research paper

we surveyed mainly students but we also have a substantial amount of respondents form private

job holders.

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Primary Data analysis:

H1

Higher income ranged consumers assume a prosperous future of Aquafina in the

mineral water market of Bangladesh

.032 correlated

We have surveyed stratified sampling among different income class in Bangladesh to learn

about their perception about the future of Aquafina in Bangladesh. We ran bivariate

correlation to find out the effect which is denoted by R. This correlation ranges between (-1

to +1). More it is inclined to positive side more is the correlation. We found out the correlation

is .032, which is positive. Well, it is not that much correlated but to some extent positively co-

related. So we can say that high income range people do assume a prosperous future of

Aquafina in the mineral water market of Bangladesh.

Reject Ho

Bivariate Correlations

Income of

the

respondents

According to you what is the

future of Aquafina in the mineral

water market of Bangladesh

Income of the

respondents

Pearson

Correlation

1 .032

Sig. (1-tailed) .037

N 100 100

According to you what

is the future of

Aquafina in the mineral

water market of

Bangladesh

Pearson

Correlation

.032 1

Sig. (1-tailed) .037

N 100 100

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H2

International tagline of PepsiCo is creating more interest among consumers towards

Aquafina

One-Sample Test

Test Value = 1

t df Sig. (2-

tailed)

Mean

Difference

95% Confidence Interval of

the Difference

Lower Upper

If an international brand

launches its mineral

water in the market,

would you feel safer to

go for that international

brand

11.186 99 .000 1.230 1.01 1.45

000 < .05 (highly significant)

Cal (11.186) > Critical (1.660)

Reject Ho

An international tagline does have an effect on consumers mind. Especially in Bangladesh

international brands grab more market share than the domestic brands. Bangladeshi people

have a strong perception over international brand, Aquafina is from the international brand

PepsiCo. As the perception of Bangladeshi people we also assumed that an international tag

will attract the consumers of Bangladesh. So we assumed our test value in this one sample

test to be 1 (1 = yes). After running SPSS we found out that our sample strongly support our

assumptions. Results are described below.

H3

Preference for MUM is dependent on gender

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Gender of the respondents * How do you see MUM as a brand Cross tabulation

Count

How do you see MUM as a brand Total

Excellent 2 3 4 5 6 Poor

Gender of the

respondents

male 21 26 21 1 5 2 1 77

female 9 5 4 3 1 0 1 23

Total 30 31 25 4 6 2 2 100

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 10.012a 6 .124

Likelihood Ratio 9.150 6 .165

Linear-by-Linear Association .000 1 .996

N of Valid Cases 100

a. 8 cells (57.1%) have expected count less than 5. The minimum expected count is .46.

.124 > .05 (not significant)

Cal (10.012) < Critical (12.592)

Do not Reject Ho.

Here as per the hypothesis we wanted to find out whether gender is dependent for the preference

of Mum. For this hypothesis we ran a Chi square test to find out if our hypothesis needs to be

rejected or not. After running the test on spss, we found the calculated value to be 10.012 which

was lesser than the critical value (12.592) and calculated significant value (0.124) is greater

than the significant value (0.05). Hence we cannot reject the null hypothesis.

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H4

The future of Aquafina is dependent on the perception of PepsiCo, present market

condition of MUM and an international tagline

Correlation

From the above table we can see that we are future of Aquafina in Bangladeshi market

(dependent variable) is positively related with perception about the parent brand PepsiCo, the

international tag of PepsiCo , condition of the existing mineral water brands in Bangladesh and

the perception of MUM in consumers mind. The highest relation is with the perception about

the parent brand PepsiCo.

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R²

Model Summaryb

Mod

el

R R

Square

Adjusted R

Square

Std. Error

of the

Estimate

Change Statistics

R Square

Change

F

Change

df1 df2 Sig. F

Change

1 .285a .081 .043 1.434 .081 2.101 4 95 .087

a. Predictors: (Constant), How do you see MUM as a brand, If an international brand launches its mineral

water in the market, would you feel safer to go for that international brand, How do you perceive the existing/

preferred mineral water brands , Perception about Parent brand PepsiCo

b. Dependent Variable: According to you what is the future of Aquafina in the mineral water market of

Bangladesh

Here the dependent variable which is future of Aquafina is not that much explainable by the

independent variables. Because from the above table we can see that the value of R² is .081 so

only 8.1% of the dependent variable can be explained by the independent variables

Coefficients

Model Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

B Std.

Error

Beta

1

(Constant) 1.85

1

.583 3.175 .002

How do you see MUM as a brand .068 .107 .065 .642 .523

If an international brand launches its

mineral water in the market, would you

feel safer to go for that international

brand

.196 .133 .147 1.478 .143

Perception about Parent brand PepsiCo .179 .091 .201 1.961 .053

How do you perceive the existing/

preferred mineral water brands

.050 .134 .037 .372 .711

a. Dependent Variable: According to you what is the future of Aquafina in the mineral water

market of Bangladesh

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H5

Preference for Aquafina is dependent on gender

Gender of the respondents * According to you what is the future of Aquafina in the mineral water

market of Bangladesh Cross tabulation

According to you what is the future of Aquafina in the mineral water

market of Bangladesh

Total

Excellent 2 3 4 5 6 Poor

Gender of the

respondents

male 11 13 21 24 2 4 2 77

female 4 7 4 5 1 1 1 23

Total 15 20 25 29 3 5 3 100

From the above table also we can see that perception about PepsiCo is highly significant (.002) on the future of

Aquafina of Bangladesh. That actually describes that for Aquafina to prosper in the mineral water market in

Bangladesh main factor is the reputation of the parent brand PepsiCo.

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Value df Asymp. Sig. (2-

sided)

Pearson Chi-Square 3.362a 6 .762

Likelihood Ratio 3.272 6 .774

Linear-by-Linear

Association

.372 1 .542

N of Valid Cases 100

a. 8 cells (57.1%) have expected count less than 5. The minimum

expected count is .69.

.762 >.05 (not significant)

Cal (3.362) < Critical (12.592)

Do not Reject Ho.

In this hypothesis we also tried to find whether preference of Aquafina is dependent on

gender. For this hypothesis we ran another Chi-square test. After running the test on spss, we

found the calculated value (3.362) to be lesser than the critical value (12.592) and calculated

significant value (0.762) was greater than the significant value (0.05). Hence we cannot reject

the null hypothesis.

Conclusion

We tried to find out if Aquafina is the worthy competitor of MUM from consumers’

perspective. Well, with our five hypothesis we are sure that people are thinking Aquafina as a

worthy competitor of MUM. But Aquafina has come to the Bangladeshi market recently so it

is not possible for Aquafina to grab a handsome amount of market share from MUM because

of its availability. It will take time. But if Aquafina wants to prosper in Bangladeshi market

they have to emphasize more on its parent brand PepsiCo, because when the name Pepsi is

pronounced in front of the consumers then the feel safe. So using the parent brand could be a

very good strategy for Aquafina.

Chi Square Test

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References (n.d.). Retrieved June Friday, 2014, from Bangladesh Tradeinfo:

http://www.bdtradeinfo.com/yellowpages/des_data.php?subcategory_id=390

Ahmed, U. (2013, March 18). Marketing Plan on ‘MUM PLUS’ Mineral Water. Retrieved

June Friday, 2014, from Educarnival: http://edupedia.educarnival.com/marketing-

plan-on-mum-plus-mineral-water/

Experience Bangladesh. (2010). Retrieved June 19, 2014, from Experiencebangladesh.com:

http://www.experiencebangladesh.com/bangladesh-drinking-water.php

Rahman, S. (2010, July 6). The Daily Star. Retrieved June Friday, 2014, from

archive.dailystar.net: http://archive.thedailystar.net/newDesign/news-

details.php?nid=145603