Effectively Marketing an All-Natural Soft-Drink to College Students Adam D.

Cosky University of Florida

MEMORANDUM Date:July 25, 2011 To: Viviana Giraud, AEC 3033 Teaching Assistant From: Adam Cosky, AEC 3033 Student Subject: Effectively Marketing an All-Natural Soft-Drink to College Students

With news of Coca Colas recent announcement to release an orange flavored soft-drink with two full servings of fruit, you requested a study to be conducted for an effective way to market the drink to college students. Enclosed is an analytical report that provides valuable information regarding students drinking and eating habits and attitudesthat should allow for a successful marketing strategy to be fabricated. This analytical report takes an in-depth look at University of Florida students perceptions of various aspects of the soda, which should help to devise the most effective marketing strategy. College students are complex individuals with many desires and goals. Reaching the majority of this population can prove to be a difficult task, as there are many conflicting interests between different groups of students. Included are the results of a convenience sample survey taken by 28 random students in AEC 3033 to try and study their perceptions and attitudes. The survey asks questions to determine what the students current drinking and eating habits are, as well as those characteristicsthey look for when choosing a drink. After analyzing the data and looking for trends among the students, conclusions were drawn that show which features of the soda appeared most important to the students. This report should provide insight on which marketing methods will be successful and those that are insignificant among present-day college students. Included in the report is an introduction, methods for the survey, results, conclusions, and recommendations for developing a marketing strategy. To ensure practicality, key aspects of the soda were outlined, which form the foundation of this study. If you have any questions, comments, or concerns about this analytical report, or would like additional information, please feel free to contact me via e-mail at a.cosky@ufl.edu.

Enclosed: Effectively Marketing an All-Natural Soft-Drink to College Students

EFFECTIVELY MARKETING AN ALL-NATURAL SOFT-DRINK TO COLLEGE STUDENTS

1

INTRODUCTION

Research suggests that among young adults, college students practice healthier habits and make more healthful food choices than their nonstudent counterparts (Betts, 1997). This may not be apparent when walking through any college campus in America and examining the choices offered to students in vending machines. The majority of drinks and snacks offered in these machines are generally highly processed and contain little to no nutrients. A study conducted at Queen Margaret College comparing participants perceptions of manufactured snack foods and fruit concluded that the main reason people choose the manufactured snacks over fruit is the indulgence and convenience aspects of these products, including storability, predictability of eating quality, and absence of waste and mess (Jack, 1996). This goes to suggest that if fruit were offered in a quick and easy manner, such as a canned soft-drink, it would be more highly regarded as a viable snack option. This analytical report demonstrates severalkey aspects in creating a successful marketing strategy for a new orange flavored soft-drink to be manufactured by Coca-Cola. The drink will primarily be marketed towards college students. The all-natural drink provides vital nutrition that will help support the on-the-go lifestyle that most students maintain, without sacrificing their health. The drink is made with real oranges and contains no artificial sweeteners or preservatives. It offers two full servings of fruit and 100 percent of the recommended daily intake value of vitamin C. As noted by Kanarek (1989), a Tufts University study on the Effects of food snacks on cognitive performance in male college studentsconcluded that a late afternoon energy-containing snack can have positive effects on cognitive performance on tasks that require sustained attention (Kanarek, 1989), in comparison to a normal diet soda.

EFFECTIVELY MARKETING AN ALL-NATURAL SOFT-DRINK TO COLLEGE STUDENTS

College students live a hectic lifestyle. In addition to the stressesof meeting academic deadlines, many students must hold part-time jobs to make ends meet, while others spend a large amount of time volunteering for various organizations to increase the strength of their resumes. In order to balance the demands of this lifestyle, many students are forced to skip meals or otherwise make unhealthy decisions to compensate for a missed meal. In a Michigan State University study of nearly two thousand college students, 22 percent of the participants reported that they skip breakfast on a daily basis, while eighty percent said that they snack in between meals at least once per day (Hoerr, 1994). This presents a large amount of the student population that could be reached, and currently there arent many soft-drinksthat are considered sensible meal replacement solutions, if any. While the Coca-Cola brand is respected worldwide in the food and beverage industry, Coca-Cola products are not generally perceived as being healthy. Many of the additives used in CocaColas products have been linked to various diseases and hyperactivity in humans, including Sodium Benzoate, which has been shown to damage DNA in living cells (Fernandez, 2008). With the development of an orange flavored soft-drink that contains only all-natural ingredients, Coca-Cola can offer a healthy alternative to soft-drinks.

METHODS In order to perform a relevant study, key aspects of the report were emphasized through secondary research of scholarly articles and other applicable sources. Primary research was performed by conducting a survey of University of Florida students, outlining their everyday

EFFECTIVELY MARKETING AN ALL-NATURAL SOFT-DRINK TO COLLEGE STUDENTS

drinking and eating habits, as well as those characteristics important to them when choosing a

In Brief
Survey consisted of 10 questions: 4 questions regarding drink selection 3 questions about eating habits 3 demographic questions Distributed survey to 30 University of Florida undergrad students 28 students (93.3%) responded to the survey

The convenience sample was randomly distributed to 30 undergraduate students taking the course AEC3033C. Of the 30 students, there were 28 respondents, ranging in age from 19 to 28. Although this group is not reflective of the entire college population, it represents a wide variety of students, allowing one to make basic assumptions of college students as a whole. The survey, containing a total of ten questions, was distributed using Surveymonkey.com. Open-ended, likert-scale, multiple choice, and ranking questions were allutilized in the survey. The survey examines what drinks students currently consume on a daily basisand outlines the key factors involved in their selection of these drinks. Other questions incorporate daily eating habits, including how often the participants eat breakfast, how often meals are skipped, and the general healthiness of snack foods that are consumed between meals. Three demographic questions were included at the end to help categorize separate groups of students and compare discrepancies between one another.

EFFECTIVELY MARKETING AN ALL-NATURAL SOFT-DRINK TO COLLEGE STUDENTS RESULTS Thirty students in AEC3033 were distributed a survey. Of those 30 students, 93.3% Sodas consumed in past 3 days (N=28)completed the survey. All 28 respondents reported themselves as full-time

F u ig
undergraduates at the University of Florida. Half of the participants were male (n=14), while the other half were female (n=14).The students possess a sizeableage range (M=1989). For research purposes, they will be split into two groups consisting of those born before 1990, the older generation, and those born on or after 1990, the younger generation. Figure 1 shows that 57.1% (n=16) of the 28 respondents reported drinking at least one soda in the past three days. Furthermore, five (17.9%) of them acknowledgedthat they drank four or more sodas in the past three days.Results show that of the sixteen students who reported drinking a soda in the past three days, eleven (68.8%) were from the older generation.Characteristically, eighty percent (n=4) of those who drank four or more sodas in the past three days were from the older generation.When asked what beverage they drink most often, out of six common beverages, soda was consistently reported as being drank the least often. A total of two students(7.1%) declared that they drink soda most often, both descending from the older generation. Alternatively, juice was most consistently the second beverage of choice, with water being drank the most often.
Figure 2

Number of sodas consumed in the past three days

As shown in Figure 2 to the right, 42.9% (n=12) of the students said that the most important characteristic when choosing a beverage is the flavor, with the second most importantcharacteristic being nutritional value at 39.3% (n=11). Having all-natural ingredients was not ranked among the top characteristics, being second to last. Incongruously, 71.4% (n=20)

EFFECTIVELY MARKETING AN ALL-NATURAL SOFT-DRINK TO COLLEGE STUDENTS

students responded that it is important that their beverages contain all-natural ingredients, with eleven of them ranking it as very important. This goes to show that while flavor is perceived as the most important characteristic when choosing a beverage, it is not the determining factor. Providing proper nutrition and all-natural ingredients are two key factors for most when choosing a drink. As shown below in Figure 3, among those who drank soda in the past three days, only 31.2% (n=5) reported all natural ingredients as a very important factor when choosing a beverage.

EFFECTIVELY MARKETING AN ALL-NATURAL SOFT-DRINK TO COLLEGE STUDENTS

Figure 3

Number of Students

EFFECTIVELY MARKETING AN ALL-NATURAL SOFT-DRINK TO COLLEGE STUDENTS

Out of the 28 students who participated, nine (32.1%)students informed that they eat breakfast daily. Inconsistent with Hoerrs study of Michigan State students (1994), who found that 22 percent of students skip breakfast on a daily basis, only one (3.6%) student reported never eating breakfast. The majority of students (42.9%, n=12) reported eating breakfast most days, while 55.6% (n=15) said they often skip meals due to a lack of time. Skipping meals was more prevalent among males (69.2%, n=9) than females (42.9%, n=6). Out of the fifteen students who often skip meals, 80% (n=12) stated that they try to make healthy choices when snacking between meals. Interestingly, out of those who drank a soda in the past three days, 81.3% (n=13) stated that they try to make healthy choices when snacking between meals.

CONCLUSION & RECOMMENDATIONS While soda is clearly not the beverage of choice for most students, juice is highly ranked among their beverage preferences. The emergence of an orange flavor soda containing two full servings of fruit may be the answer for Coca Cola to break into territories uncultivated by their current line of sodas. Fernandez (2008) showed that some of the chemicals currently used in Coca Colas sodas are harmful to human cells. The use of all-natural ingredients will ensure that consumers are not at risk of drinking these harmful substances. With 71.4% of students stating that it is important that their beverages contain all-natural ingredients, it may prove to be a strong selling point for the

EFFECTIVELY MARKETING AN ALL-NATURAL SOFT-DRINK TO COLLEGE STUDENTS

product. Similarly, the majority of students are keen on drinking beverages of high nutritional value, while the only other major factor when choosing a beverage is the flavor. As noted earlier, Betts (1997) found that college students are more likely to make healthful food choices than those who do not attend college.Highlighting these key features of the soda should set a high standard that reaches the aspired population. The fact that the majority of students reported to at least eat breakfast some days and over half said they skip meals often due to a lack of time shows that they are eager to eat breakfast, but many times must sacrifice their breakfast in order to manage their time properly. Skipping meals affects academic performance negatively, as demonstrated by Kanarek (1989). Marketing the soda as a meal replacement or nutritious morning meal may prove to be beneficial to its popularity among college students. A trend emerged among the older generation that suggests they are more likely to be soda drinkers than the younger generation. This may lead one to conclude that Coca Cola should focus its marketing efforts on the younger generation to try and bring in more new customers and increase profits. As stated previously, the analysis performed does not represent the entire college student population, not even that of the University of Florida. Judging from the results of the survey, this product should be quite popular among college students if marketed correctly. Additional research should be conducted amongst other college students of alternate demographics to be certain of this. Ultimately, no one can be sure of the success of a beverage until it is released to the public.

EFFECTIVELY MARKETING AN ALL-NATURAL SOFT-DRINK TO COLLEGE STUDENTS REFERENCES Betts, N. M., et al. (1997). Among Young Adults, College Students and Graduates Practiced

more Healthful Habits and Made More Healthful Food Choices than did Nonstudents. Journal of the American Dietetic Association,Volume 97,Issue 7, Page 754. Retrieved from http://www.adajournal.org/article/S0002-8223(97)00187-9/abstract. Fernandez, C. (2008). Diet Coke to Drop Additive in DNA Damage Fear.Mail Online. Retrieved from http://www.dailymail.co.uk/news/article-1021820/Diet-Coke-drop-additive-DNAdamage-fear.html. Hoerr, S. M., Huanga, Y. L., Schemmel, R. A., & Song, W. O. (1994). What do College Students Eat? Food Selection and Meal Pattern.Science Direct,Volume 14, Issue 8, Page 1143. Retrieved from http://www.sciencedirect.com/science/article/pii/S0271531705802428. Jack, F. R., O'Neill, J., Piacentini, M. G., &Schrder, M. J. A. (1996). Perception of Fruit as a Snack: A Comparison with Manufactured Snack Foods. Science Direct, Volume 8, Issue 3, Page 175.Retrieved from http://www.sciencedirect.com/science/article/pii/S0950329396000468. Kanarek, R. B., & and Swinney D. (1989). Effects of Food Snacks on Cognitive Performance in Male College Students.Science Direct, Volume 14, Issue 1, Page 15.Retrieved from http://www.sciencedirect.com/science/article/pii/0195666390900519.

Beverage Questionnaire

EFFECTIVELY MARKETING AN ALL-NATURAL SOFT-DRINK TO COLLEGE STUDENTS

Food and Beverage Questionnaire

1. How many soft drinks have you consumed in the past three days? (Please choose one)
0 1-3 4-6 7-9 10 or more

2. Please rank the following beverages 1 to 6, with 1 being the beverage you drink most often and 6 being the beverage you drink the least. (Please use each number only once)
1 (most often) Water Juice Milk Soda Tea Coffee/Energy Drink 2 3 4 5 6 (least often)

EFFECTIVELY MARKETING AN ALL-NATURAL SOFT-DRINK TO COLLEGE STUDENTS 1 (most often) 2 3 4 5

6 (least often)

3. Please rank the following beverage characteristics 1 to 5, with 1 being the most important to you when selecting a beverage and 5 being the least important. (Please use each number only once)
1 (most important) Flavor Nutritional Value Cost Caffeine Content All-Natural Ingredients 2 3 4 5 (least important)

4. How important is it that your beverages contain all-natural ingredients? (Please choose one)
Very Important Somewhat Important Not very Important

EFFECTIVELY MARKETING AN ALL-NATURAL SOFT-DRINK TO COLLEGE STUDENTS

Not at all Important

5. How often do you eat breakfast? (Please choose one)

Never Some days Most days Every day

6. Do you often skip meals due to a lack of time? (Please choose one)
Yes No

7. Do you try to make healthy choices when snacking between meals? (Please choose one)
Yes No

8. Which of the following best describes you? (Check all that apply)
Full-Time Student Part-Time Student Undergraduate Student Graduate Student

EFFECTIVELY MARKETING AN ALL-NATURAL SOFT-DRINK TO COLLEGE STUDENTS

Employed Full-Time Employed Part-Time Unemployed

9. What is your gender? (Please choose one)

Male Female

10. What year were you born?

EFFECTIVELY MARKETING AN ALL-NATURAL SOFT-DRINK TO COLLEGE STUDENTS

Final Analytical Research Report Grading Rubric

Point s Value Analytical Report Cover Page Title Clear, concise, appropriate size Transmittal Letter On separate page Correct format, addressed appropriately Identifies enclosed materials States reason for sending materials Summarizes enclosed materials 2 Point s Earne d

Element

Letter Contents

2 2 2 2 2 2 2

Provides contact information Includes mention of action items based on findings Report Material Introduction Sidebar or Inbrief Stresses importance of the subject Clearly defines subject of report Offers appropriate background information Distinguishable from other text Includes at least 3 main take-aways/findings Methods used in the study/report are described fully, with clear detail States research purpose directly Includes appropriate subheads

7 7 7 2 3 7 5 5

Body of Report/Results

EFFECTIVELY MARKETING AN ALL-NATURAL SOFT-DRINK TO COLLEGE STUDENTS

Includes at least 2 easy to read/interpret graphs or charts, labeled correctly Graphs & charts are applicable & enhance the text Graphs and charts are referred to in text Results presented clearly, completely, & concisely Includes discussion of the meaning of the results (conclusions, implications and recommendations) 2 2 2 10 10 5

In-text citations used correctly (APA style) Reference List References Correct APA style Includes a minimum of five sources

5 5 5

Minimum of three sources are scholarly Survey Instrument Overall Considerations Total Points Report is well-written, concise, clear, has good flow Free of grammar, punctuation, & spelling errors Report is objective (includes no statements of opinion) All additional changes/edits to draft by TA are made

10 10 5 20 150