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1. Problem Definition
1.3 MDP
1.4 MRP
2. Methodology
2.4 Sampling
3. Evaluation
3.3 Timeline
4. References
Appendix C - Timeline
1. Problem Definition
100PLUS is a kind of caffeine-free isotonic drink produced and launched in 1983 by Fraser &
Neave Limited, and has been around for more than 30 years till today. During the initial
launch of their new product, they faced many setbacks trying to publicise the drink. One of
their drawbacks was that their targeted consumers were unable to recognize the purpose for
the drink. However, the company did not abandon hope on the product and invested a
greater deal on it (100 plus, 2014). Fortunately for Fraser & Neave limited, the idea of
caffeine–free isotonic drink was the earliest in its market, allowing them to have first-mover
advantage.
The main ingredients in 100 PLUS are carbonated water, glucose, citric acid, sodium citrate,
potassium phosphate and calcium phosphate. 100 PLUS is a well-known sports drink, as it
contains uniquely combined electrolytes and carbohydrates for quick and efficient
absorption, helping them to stay hydrated, and enhancing the body’s overall performance
capability. Top athletes consume 100 PLUS because it can be use to rehydrate, boost
energy and replenish electrolytes after sweating from heavy physical exertion (100 plus,
2014).
To meet different consumers’ demands and preferences, 100PLUS provides a whole new
variety of flavours and colours. There is also a new introduction for their new non-carbonated
drink, which contains B vitamins that aid and speed up after-sports recovery (100 plus,
2014).
The current emerging trends are the usage of natural ingredients in the formula of energy
drinks, as people grew to be more concern in what exactly is in the product that they are or
will be consuming (Doering, 2015). Also, consumers tend to associate natural ingredients
with healthy lifestyle (Pranevičius, 2012). Hence, the introduction of natural ingredients to
100 Plus can form a new extension, adding on to the 100 Plus varieties, where it may further
increase onto product sales.
Therefore, the management will need to decide whether the new product extension of 100
Plus with natural ingredients would be able to satisfy the needs of consumers in the sports
drink segment. In the case that the needs can be satisfied, 100 Plus would be able to boost
its market share through its competitive edge, as some competitors may not offer such
variation.
1.3 MDP
Should 100 Plus introduce a new product with natural ingredients which is a healthy lifestyle
to increase market-share?
1.4 MRP
What are consumers’ reactions to healthy energy drink with natural ingredient and what
healthy aspects
2) To measure the relationship between brand loyalty and consumption (brand loyalty).
4) To establish the relationship between taste preference of consumption of 100 plus (taste
and preferences).
The first objective helps determine target consumers who are likely to consume healthy
energy drink with natural ingredient. The second objective aims to knowing the attitudes,
feelings, or what consumers want or what consumers think will help managers better
strategizing and predicted its success. Understanding the customer's lifestyle and improve
availability will help managers to measure how successful a new product with natural
ingredients to increase sales and market-share and 100 Plus’s competitive position. Lastly,
the fourth objective can help managers to determine the taste and preferences of customers,
which helps them decide on the most popular flavour that contains the natural ingredient.
2. Methodology
2.1 Research Design
This report will be using descriptive research design to obtain a descriptive behavior of
consumers towards the introduction of 100 Plus with natural ingredients. It will be in an
exploratory research such as in the form of a questionnaire, to help understand and also
provide insight for the marketing development process.
Good description provides significant insight to the research as it encompasses a broad
scope of social indexes and economic data such as household expenditure patterns (Jong,
2002).
Desk research revealed that consumers are shifting towards healthier lifestyle. Therefore,
marketing 100 Plus with natural ingredients can possibly encourage market sales.
Descriptive research can help to further support the expansion of primary perception, and
also to develop series of plans for the management to undertake.
As 100 Plus is beneficial to people that wants to be completely hydrated, it can be consumed
by anyone, regardless of age or gender. People with diabetes can also drink 100 Plus (100
Plus, 2014). Hence, this research will center on consumers that are willing to give the new
product extension, which contains natural ingredients, a try.
Participants will only be allowed to complete the survey once, to prevent duplication of data,
which may lead to inaccurate analysis of results (Jackson, 2009). The time period of
advertising screening questionnaires will be extended, in the case of not meeting the
required amount of responses. When the desired sample size is attained, the advertisement
will be taken down.
Questionnaires will first be certified through pilot study. A pilot study is miniscule exploratory
studies administered to evaluate statistical variability in order to determine relevant sample
size and help further improve study design performance (Teijlingen, 2001). After certification
of the targeted respondents, the concluded questionnaires will compose the final formal
sample.
2.3 Data Collection Forms
The questionnaires will be used to collect data. This kind of data collection forms that allows
researchers to use a flexible method, also quick and cost-effective to provide convenient
ways to gather information from responders to conduct surveys (William G. Zikmund, 2002).
Questions or social investigation is a method used to collect data from many people. They
are used to collect data in a statistical form. Besides, researchers usually use questionnaires
to enable them to make generalizations, therefore, the surveys are commonly based on the
selected template carefully (mindtools.com,2015).
This is a cross-sectional study because it takes data at an only time (William Zikmund,
2006). Hence, respondents will be asked only a single time.
The question will be undisguised questions as the responders will be willing to disclose
information relevant to our marketing objective research. In addition, the undisguised
questions is the best choice to avoid situations can occur such as some questions are
threatening to a person’s ego, prestige or self-concept (William Zikmund, 2006).
The formal question will use the funnel technique, this technique involves starting with
general questions, and then led the way to one point in each answer, and require more
detailed questions at every higher level. When using funnel questionaires, start with closed
questions (very short question or one word question) and using more open questions (longer
question, often begin with what, why, how) at the end. The purpose of general questions are
used as closed questions will help respondents feel comfortable and confident when
answering questions. In addition, the funnel technique reduce prejudice and helps
researcher knows responder’s opinion or feeling (mindtools.com,2015).
The official question will use a folio general layout. Folio layout will have a question for each
page, there is a status bar at the top of the page shows how many questions the respondent
has answered. The respondents will be asked to enter an answer before being allowed to
advance to following pages, as this will avoid the questions omitted (using software required
to answer).
The probability techniques will be used in this reseach. The probability sampling is a
sampling technique of the population has a known, nonzero probability of selection.
(Zikmund, 2010).
This study research will use the simple random sample which ensures that every element in
the population will have a chance to be included (Zikmund, 2010).
Moving to the sampling size, the larger the sample, the more confident we can make reason
about population. In addition, the larger sample will allow researchers to detect small
differences between groups, a sample too small will result in not convincing and will lead to
difficulties in the process of creating a new product. Therefore, collecting larger data sample
is needed (epilab.ich.ucl.ac.uk, 2010).
3. Evaluation
The ethical considerations for F&N play extremely important role as F&N Company products
are from the sector of Food & Beverages that are consumed daily by 7 out of 10 people.
First of all, the F&N should be careful in considering not only the output of the company, but
also for the health of the consumers. Ethics is about finding rules that make social living
better, but it assumes some overlap of interests (The Business Ethics Blog, 2013).The ratio
or portion of the ingredients that included in the drinks should be listed as it is rather than not
letting the consumer know about it. The labels of the products mean so much for the
consumers. Labels are an attractive component of structure because they make it possible
to argue that individual food consumers have been placed in a position to grant or withhold
consent to food borne risks(Thompson, 1993).The F&N needs to consider that they don’t
use addictive ingredients in their drink in order to boost the sales of the 100 PLUS In this
twenty-first century, the breaches of ethics in the food industry are not very restricted by the
law and many of the food industries take chances of this and maximize their profit.
Secondly, it is vital to keep the consumer’s personal information that obtain from marketing
research and those information are best to used just for research purpose rather than to
increase the sales and profit of the company. Not breaching of privacy issues between
consumers and the company is basic needs for company‘s ethics.
Another important factor for the company is that it had to make sure that the questions they
ask the consumers for research purposes shouldn’t give pressure on the answer of the
participants. In other way, the question should not be bias questions. The F&N Company
also needs to take care of the supplies or ingredient that they used for the drinks so that the
company can manufacture healthy products to the consumer’s hand. The company should
only sell healthy products and should not use harmful ingredients are a code of ethics to the
food company.
The researchers are mostly done in the focus group and the results that get from that focus
group will not be able to predict the consumer preference of the whole population. Another
limitation can result from the duration and the questions that the participants have to answer.
If the questions are too long or the duration or time period for the participant is too tight, the
answers that come out will not be true or useful. Some research and survey are not in the
written form. So, the result that the company gets is just the interpretation of the surveyors.
Moreover, the questions and the way it is written and research design can be potential
limitations to the participant as some questions bias and the participants cannot give the true
attitudes toward the questions. For the research survey that take place on internet via email
and web pages, the information collected will not be accurate as the participants can answer
without reading the questionnaires and some participants will not be able to access their
email due to some connection problems or simply don’t want to reply it because they think
that it’s not necessary or important for them (Zikmund, Ward, Lowe, Winzar & Babin,n.d.).
3.3 Timeline
See Appendix C.
The questionnaire of the research is targeted to the descriptive behavior of buyers and
support insight for marketing strategies to increase market shares and relationship between
100PLUS and consumers. As the objectives of the research is not about examining the deep
understanding of why these responses come out and how, and it is not figuring out the
variables , quantitative and descriptive research are the most suitable for the research.
4. References
- Jong, T.M. de, van der Voordt, D.J.M. (2002), Ways to study architectural, urban and
technical design. Delft: DUP Science, 53-60.
- Rudd, D., & Mills, R. Business and Behavioral Issues Surrounding the Ethics of Food
Choice. Retrieved 2 July 2015, from http://www.aabri.com/manuscripts/08086.pdf
- The Business Ethics Blog,. (2013). The Food Industry: When Ethics Just Isn't
Enough.
- Thompson, P. (1993). Ethical issues facing the food industry. Retrieved 30 June
2015, from http://ageconsearch.umn.edu/bitstream/26567/1/24010012.pdf
- Zikmund, W., Ward, S., Lowe, B., Winzar, H., & Babin, B. Marketing Research
Cengage.
Retrieved 1 July 2015, from
http://www.cengagebrain.com/content/zikmund83343_0170183343_02.01_chapter01
.pdf
Your responses will be recorded safely and your personal information will be strict in
confidence.
2) Would you consider drinking if energy drinks introduce a new product with natural
ingredients?
Yes
No
3) Gender
Male
Female
4) Your age
5) Occupation
Professional
Students
Unemployed
Homemaker
Other
6) Your email address (Fill up your email address here and get information when you can
have free gift voucher by answering short questionnaire)
Thank you for your participation.
Note: Your Gift voucher can be redeemed at any Asia mall (Expire on 1/12/2015).
Those who answered the ages between 16-25 years old and occupation status (Professional
and Student) and who willingly gave email address will be chosen for database.
Your responses will be recorded safely and your personal information will be strict in
confidence.
1) Gender
Male
Female
2) Your age
4) Would you consider drinking if energy drinks introduce a new product with natural
ingredients?
Yes
No
Once a week
Once in few weeks
Once in a year
To boost energy
To make me feel active
To quench my thirst
Mostly
Sometimes
Never
Red Bull
100PLUS
Mother
Monster
Rockstar
9) How probable would you consider purchasing if energy drinks introduce a new product
with natural ingredients?
Won’t buy likely won’t buy Neutral probably purchase will surely
purchase
1 2 3 4 5
10) What is your point of view for energy drinks that include natural ingredients?
1 2 3 4 5
11) Which kinds of natural ingredients would you like to include mostly in energy drinks?
Yes
No
15) Your email address (Fill up your email address here and get information when you can
have free gift voucher by answering short questionnaire)
Note: Your shopping voucher can be redeemed at any Asiamalls (Expire on 1/12/2015).
Appendix C- Timeline