[Type the company name]

To study how brands affect customer behaviour

and its gradual involvement during the
purchasing process
Research Report
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Table of Contents
1. Introduction .......................................................................................................................................... 3
1.2 Research Background........................................................................................................................ 3
1.2.1 Trends in Canadian Soft Drink Industry ........................................................................................ 4
1.4 Purpose and Significance of Research .............................................................................................. 5
1.4 The research goal and Objectives ..................................................................................................... 6
1.5 Research Questions .......................................................................................................................... 6
2. Literature Review .................................................................................................................................. 6
2.1 The concept of brand .............................................................................................................................. 7
2.2 Brand Elements ....................................................................................................................................... 7
2.3 Approaches of Branding.................................................................................................................... 9
2.4 Brand identity and Positioning ............................................................................................................ 10
2.5 Consumers Purchasing Behaviour .................................................................................................. 12

3. Research design .................................................................................................................................. 13

4. Data Analysis and Findings.................................................................................................................. 15
4.2 Impact of Branding on Consumer Behaviour .................................................................................. 17
5. Conclusion ........................................................................................................................................... 20
References .................................................................................................................................................. 22
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1. Introduction

The distinguished features of products help customers to select the products from retailers but if

these products have no identity of their own then there will be a problem if selection and recall.

If producers cannot name their products and create different packaging, colours, fragrances,

slogan, logos, and symbols associated with particular products categories them they can meet the

competition in the market. Therefore, branding or associating specific characteristics to a product

or service is an important marketing function. The selection of right products, reuse and

repurchase cycles, reference to the other are all link with the brands and their significance in

daily life items to the luxurious goods.

According to Watt (2008), consumers preferred a favourable brand and show a loyal behaviour

to this brand that leads to the rapid decision making process and affect purchase decision after

ignoring other products and brands available in the market. This behaviour exhibits the

importance of branding in consumers purchase behaviour and its importance in marketing

literature. This research report is based on the assessment of the impact of branding in beverage

industry on the consumers purchasing behaviour and perception. Soft drink industry of Canada is

selected for this study and a brief research is conducted through survey of Canadian consumers

through online channels and personal contacts.

1.2 Research Background

Moreover, this fact is realized by scholars like Kotler (2009) that it is a marketing tool that can

change the product development and management strategies, affect on marketing mix decisions,

and can change the consumers’ perception of a particular category of products in long term.

Keller and keller (2009) captured the essence of branding in their studies in strategic brand
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management areas and asserted that a part from the facilitation in consumers purchase decisions,

branding facilitates the market segmentation, targeting, and positioning activities of the

producers. Therefore, branding has emerged as on of the most vital areas in marketing and

promotion of global products with a proper consideration of consumers needs and wants in

specific segments of the market.

The beverage industry in Canada is not an exception to this phenomenon as all international

famous soft drinks brands are available in the markets. The companies like Coca cola and Pepsi

are using branding strategies to increase consumers liking and preference to their bands. The

question is still there that branding is the major factor in consumer preference and purchasing or

not. The domestic and global brands are using multiple techniques to reach consumers mind and

to establish a favourable brand image as to increase their long term sales in beverage markets.

Also, popularity and equity of brands are important parameters in measuring the success of a

particular manufacturer and marketer.

In this respect, the study of is important in defining the relationship between brand popularity

and “company-of-make” thinking patterns for the major brands in consumer markets in

developed countries. Another important finding of this research is the first preference of

multinational companies’ brands in youth and different tastes selection of males and females

respectively. Furthermore, the study of William (2005) also recommended strong role of

promotions to the beverage brands popularity when company promotions should be intensified.

1.2.1 Trends in Canadian Soft Drink Industry

The Canadian carbonated non alcoholic beverages industry has shown a rapid progress in other

product categories of fruit-flavoured, colas, ginger beers, ice tea, ice coffee, and bottled water.
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These carbonated soft drinks (CSD) are commonly used in all retail outlets and equally popular

as other alcoholic drinks in Canada. The brands profiles in these CSDs categories is expanding

regularly and la leading national and global brands are included in it. This industry is based on

franchising of leading international brands and offer competitive brands to the consumers in

Canadian markets. This industry is basically serves the domestic demands in Canadian markets

and CSDs sales have shown a stable and relatively decreased pattern in last few years. The

possible reasons of this decrease are health consciousness and increasing share of healthy

substitutes like fruit drinks and tea/coffee drinks.

Moreover, the consumers’ trends towards the healthier drinks have forced the CSD

manufacturers to opt for ne healthier substitutes like diet colas and fruity carbonated drinks. The

purchase of “minute maid” brand by Coca Cola and launch of Tropicana juices by Pepsi are

examples of this realization to capitalize healthier options in beverage sector. Therefore, I n

branding decisions, global soft drink giants are offering mild and healthier drinks to the educated

and aware consumer markets of Canada. The offers like energy drinks, cold coffee and tea, fruit

drinks, juices, quality soda, and sparkling water are some exceptions added to the soft drink

market in recent years and have affected the consumers’ behaviour rapidly.

1.4 Purpose and Significance of Research

The introduction and background of this study shows that the marketing strengths of brands

owned companies are more as compared to the unbranded products as they provide more choice

and strong selection criteria. Therefore, this research will play and important role in assessing the

impacts of branding on the consumers purchasing behaviours of beverages (CVSDs). The

susceptibility of consumers with respect to specific brands is an important measure if the

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effectiveness of marketing strategies and especially promotion. Another strong significance of

this research is its exploration of suitable strategies to the carbonated products brands to improve

in a particular environment.

1.4 The research goal and Objectives

The aim of this work is to study how brands affect customer behaviour and its gradual

involvement during the purchasing process. The objectives of this study are classified as:

1. To review the theories of branding and its impacts on consumers purchasing behaviour

2. To identify the major factors of branding affecting consumers purchase decisions in

Canadian Beverage industry for CSDs.

3. To recommend strategies of CSDs brands marketers to improve consumers perceptions of

their brands.

1.5 Research Questions

The following research questions are addressed in this brief research:

1. How do brands affect customers’ purchasing behaviour for beverage sector in Canada?

2. What are the major factors of branding affecting consumers purchase decisions in

Canadian Beverage industry for CSDs?

3. What are the suitable strategies of CSDs brands marketers to improve consumers’

perceptions of their brands?

2. Literature Review
This section reviews the important theories of branding and their implications on the consumers

purchasing behaviours.
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2.1 The concept of brand

By definition., brand is specifically a method of differentiating and product, service, or goods

from its competitive products and services (Kotler 2009). This brand is made by specific

companies strategies related to the name, elements, slogan, character of the company and the

product/service itself. Therefore, branding is the procedure or method of creating, maintaining

and reviving brands by increasing market shares, brands awareness, and brands identity in target

consumers markets. The ultimate goal of the companies’ branding strategies is to attain long

term consumers associations and brand loyalty which in turn will increase the brand equity or

total worth. According to De Pelsmacker (2001, 35), brand awareness investments and improved

brand image can act as powerful tools of marketing to gain long term profitability.

Furthermore, branding and re-branding need to be handled with ultimate care as a wrong strategy

can destroy the financial and physical efforts put on branding. Lead Edge, (2005) asserted that

the success of the strong brand lies in the final positioning and the image perceived by the

consumer about the product and the company. The most compelling motives behind the need of

effective branding are to achieve brand loyalty and to charge a premium price to the ultimate

consumer. The experience gained by the purchasers determined their decisions of repurchases

and reuse of the brands in long run, therefore, only achieving high profits and charging premium

prices cannot increase the brand loyalty unless the product is also competitive enough.

2.2 Brand Elements

In another school of thought, effective branding involves a name to remember, a product to use,

and a slogan to refresh the memories. The other elements of brands are effective and unique logo

like that of Pepsi or Coca Cola in beverage sector, instantly recognizable and simple. Another

crucial element is the brand name itself, different but easy to pronounce and remember. For
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multinational companies, brand name should also be neutral enough so as not to associate any

specific cultural connotation to the word (Daye et al 2008). Another important aspect of brand

elements is colour, important in developing a branding strategy. The selection of corporate logo

and slogan designs and colours of elements used are decisive in memorizing the packing itself.

The red of Coca Cola and Blue of Nestle is decisive in picking their products from the shelves.

The colours not only define the competition and enhance the brand personality, but also

influence the consumers purchasing behaviours. Sharp contrasts are used in beverages bottles

and cans in fruit colours of orange, green, red and blue that not only distinguish but also impact

the consumers energy and coolness perceptions (Watt, 2008).

The characters, portfolio, sales promotions, and leverages associated with the brands also act as

important elements. The country of Origin, company reputation, Cultural aspects and corporate

images are determinants of consumers liking of the particular corporate brands and their products

portfolios. The character and personality associated with he brands have elements of sincerity,

excitement, ruggedness, accountability, and sophistication. Furthermore, large and diversified

portfolios of strong brands act as cumulative support for company brands as they complement

each other. For instance Coca Cola has easily launched Minute Maid in fruit pulp category due to

its leading brand name and strong position in industry.

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Fig. 1 Brand elements

Source: Zone1.ca

2.3 Approaches of Branding

Lindstrom, (2008) proposed that the three main approaches of branding in fast moving consumer

goods (FMCGs) are included identification of right targeted audience, the selection and

formation of promotional messages, and determination of appropriate brand elements and

identity. The scholars in this area opined that clear focus and right selection of audiences, focus

on value creation and delivery, and focus on tone of the messages determine the degree of

consumers association to that particular brand (Kim and Chung, 1997; ). The important measures

of brands success in=clued increase in market share, enhanced image of country and brands, and

popularity of brands globally. In beverage industry, Brands are competition in highly competitive

environment due to presence of global, domestic brands and unbranded beverages. Country of

origin o=image and brands popularity supported the brands awareness and competitive position
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in international markets like that of Pepsi Cola, Nestle, and Coca Cola. These positive brand and

country images supported these corporations to easily offer brand extensions and to develop new

markets. The factor of audience is very important as the target market of CSDs is normally

Youth in every country. William (2005), studied the behaviour of youth towards beverage brands

and concluded that these youth knew the brands names only in most cases and do not know the

company names except in the case of global brands like Coca Cola and Pepsi Co. Another

strong discovery in this research was that females are more loyal consumers of cola drinks as

compared to the males

2.4 Brand identity and Positioning

As by definition, brands are used to distinguish products from that of competitors, therefore,

they need to be unique and distinguishable. Brand identity plays this role in creating a unique

position of the brand and significance in eyes of consumers. The values, character, and symbols

associated to the brands personality along with its physical performance created the brands

identity. Aaker (2001) exclaimed that it is a unique pattern of brand associations that marketers

built in their brand promotions and value delivery to consumers that consumers pronounced

these brands in these premises. The promises of the company to the consumers and its entire

fulfilment can strengthen or weaken the identity of brands.

Another important aspect in branding is brands positioning, the creation of expected level of

satisfaction and desired image of the brand in consumers minds through marketing strategies

(Keller and Keller 2009). Kotler (2009) concluded the profits margins of branded European

companies are more than double as compared to industry averages due to effective brands

positioning and branding strategies.

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The brands portfolios and architecture are based on normally two common strategies, house of

brands strategy and branded house strategy (De Pelsmacker 2001, 38). If the company use

specifically its own name with all brands , not to mention separate names and different branding

strategies, then it is termed as branded house strategy. Another strategy of positioning is to adopt

separate brand names for every product in products portfolios, called the house of brands

strategy. In this strategy, every brand is treated as different and individual personality and

possess specific positioning in minds of consumers.

Combinations of effective brands strategies lead to clear brands identity, meaningfulness,

favourable responsiveness and high brands associations for a respective brand. The brand equity

model of Keller and Keller (2009) specify the step wise inclusion of these characteristics in

increasing the brand equity in long run. Keller (2006) termed brand equity as the cumulative

impact of strong brand associations, high awareness, positive responses, and strong produc t

attributes and experiences (see fig. 2).

Fig. 2: Brand Equity Pyramid

Source: Keller and Keller (2009)

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2.5 Consumers Purchasing Behaviour

The cpnsumer decision making process is an organized phenomenon and normally follows a five

step model of decision making as shown below.

The first stage represents the phase of needs recognition and awareness of wants, then the

information search to satisfy the needs. Third step is based on evaluation of alternatives and then

selection of most favourable alternative. The final step is post purchase evaluation. According to

( ), a weak branding strategy will fail the consumer to recall that brand in need recognition

state, all the rest steps are then useless for this brand. Therefore, in beverage industry, mass

marketing expenses are highest to constantly hit the memory of consumers to recall the brand

instantly when feel thirsty.

The most famous consumer behaviour model is black box model of purchase behaviour

(Shiffmann et al 2010). In this model, the marketing stimuli act as an input factor through

effective marketing mix along with the other situational and environmental factor. The black box
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is internal decision making process and inert characteristics of consumers. The personality,

attitude towards brands, and perception of brands lead to the response of consumers. The final

outcome resulted in trial, purchase, repurchase or denial of the brands as per decision making

process.

Source: Kotler (2009)

3. Research design
Saunders et al (2009) asserted that suitable and comprehensive research design is an important

prerequisite of credible researches. Research design is the map or blue print of the whole study

that includes research philosophy, approaches, data collection tools, and data analysis methods to

be use in actual study. In this study, descriptive methodology is used due to the availability of

branding concepts and theories to apply for particular industry. Descriptive methodology is

useful in describing the relationship of important factors of branding that affect the purchasing
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decisions of consumers. The deductive approach is used in collecting data and analysing it to

answer the research questions raised in the beginning.

3.1 Sources of data

According to Sarandakos (2009), both primary and secondary data is needed to evaluate

outcomes in a research. The secondary data in this research was collected from the online

databases, academic articles, Canadian beverage industry websites, and latest books. This data is

used in writing introduction and literature review. On the other hand, primary data is the first

batch of data which is collected by researcher. In this study, primary data is collected from

survey strategy based on a quantitative and close ended questionnaire survey.

3.2 Data collection techniques

The data collection technique in this research was based on survey strategy. Quantitative data

collection is done by a structured questionnaire, filled by the Canadian citizen through online

channels included e-mails and Facebook. The questionnaire was developed in close ended

questions form with structured answers. The sections of this questionnaire are divided in

personal information and the questions related to the preference of brands, image, identity, recall,

and promotion techniques in soft drinks sector.

3.3 Sampling

Sampling is performed to collect data from representative groups in selected population. A group

of respondents selected to give required information about the related topic and then appropriate

analysis is performed on this data. The population for this study is the consumers of soft drinks

in Canada. The techniques of sample selection used was judgemental sampling, as only those
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students of university and friends on Facebook were contacted who are Canadians and regularly

consume soft drinks. Malhotra and Burks (2007) asserted that this non–probability based method

of sampling relies on prior judgement of the population and targeted sample characteristics. The

respondents were initially informed about the purpose of research and their consent was taken in

advance before handing over the questionnaires. The sample size used for this study was 50 and

every person had understood the research problem properly and answered the questions

accordingly.

3.4 Data presentation and analysis

Sarantakos (2009) proposed that after collection of primary data, the classification, analysis, and

presentation are important in drawing the conclusions and findings of the research. The ways

used to analyse the data in this report are using Ms-Excel work sheets and data were classified in

tables. Appropriate pie-charts and bar graphs were also used to graphically represent the data.

The frequency and percentages are used to predict the trends in consumers preferences about the

branding attributes of soft drinks.

4. Data Analysis and Findings

This section is based on the discussion on findings from the survey anal;ysis. The sample was
asked abouyt their age and gender and general preferences about soft drinks in normal routines.
The answers are discussed in the sections below:

4.1 Personal Information

The table below shows the age distribution of the sample, 52% were males and 48% were

females, represents a nearly equal and balanced distribution of samples. Therefore , the results

and gender unbiased and represents the actual population averages.

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Gender
Frequency Percentage
a- Male 26 52%
b- Female 24 48%
Total 50 100%

Gender
Male Female

48% 52%

The other important parameter asked was the age of participants in order to determine the age

distribution of the sample. According to the table shown below, the age distribution is dominated

by youth and young respondents. Normally, the soft drink users are youth and the companies

promote their excessive use of soft drinks in daily routines. According to frequency distribution,

the sample was dominated by the people if age group 21 to 30 years (42%) and of less than 20

years (20%)

Which of the following age groups do you belong to?

Frequency Percentage
a- Less than 20 years 10 20%
b- 21-30 years 21 42%
c- 31-40 years 9 18%
d- 41-50 years 6 12%
e- Above 50 years 4 8%
Total 50 100%
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Age
Less than 20 years 21-30 years 31-40 years 41-50 years Above 50 years
8%
12%
20%

18%
42%

4.2 Impact of Branding on Consumer Behaviour

This section of the questionnaire deals with the impact and aspects of soft drinks branding on

consumers behaviour. In this section, the first question was related to the frequency of

consumption of soft drinks in their normal daily life. The majority o respondents (56%)

consumed it frequently and often (32). This response shows the high rate of soft drinks especially

carbonated drinks consumption in Canada.

How often do you consume soft drinks normally?

Frequency Percentage
a- Frequently 28 56%
b- Often 16 32%
c- Rarely 6 12%
d- Never 0 0%
Total 50 100%

How much do you interact organization

through social network?

12%0% Frequently
Quite Often
32% 56%
Rarely
Never
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Another question was related to the venue or place of purchasing soft drinks in their regular

routines. The results shown in the table and graph are evident that respondents mostly use ATM

machines for disposable cola drinks and juices (42%), the other major venue of purchase is in

monthly grocery shopping (24%). Convenient stores and other venues are less used by these

respondents for their normal soft drink purchases.

How do you purchase soft drinks normally?

Frequency Percentage
a- from convenient stores 9 18%
b- In monthly grocery shopping from super stores 12 24%
c- disposable from ATM machines 21 42%
d- Any mode of purchasing 5 10%
e- all of the above 3 6%
Total 50 100%

Common response to online shopping offer of

retailers in UK:

all of the above

Any mode of purchasing

disposable rom ATM machines

In monthly grocery shopping from super

stotres

from convenient stores

0% 20% 40% 60%

In the next question, the most memorable soft drink brand elements were asked from respondents

in order to understand the significance of brand elements in decision of soft drink purchase. The

table and the graph below shows that mostly brand name is memorable (34%), then slogan

(18%), and colour and company name (14% each). This trend shows that the most important

thing I soft drink brand recall is the brand name and slogan for the consumers.
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Which of the following brand element you notice and remember in a soft
drink?
Frequency Percentage
a- brand name 17 34%
b- slogan 9 18%
c- colour of bottle/can 7 14%
d- shape of bottle/jar 3 6%
e- advertisement 5 10%
f- company name 7 14%
g- country of origin 2 4%
Total 50 100%

You have selected above option due to which

following reasons? (Tick >1)
40% 34%
35%
30%
25% 18%
20% 14% 14%
15% 10%
10% 6% 4%
5%
0%

In the last question of this small survey, the respondents were asked about the most favourable

promotional media to be used by their favourite soft drink brand. According to the analysis

shown in the table and the graph below, majority respondents prefer TV commercials (24%), Bill

board advertisements (17%), and magazine ads (15%). The other n=media are not very

prominent and preferred by the consumers to notice soft drink promotions. This trend shows the

importance of TV commercial and out of home advertising in promotion of soft drinks.

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Which of the following promotional modes is more memorable for your

favourite soft drinks brand? can tick more than one
Frequency Percentage
a- Newspapers ads 5 5%
b- TV commercials 23 24%
d- In store digital signage 6 6%
e- Radio ads 11 12%
f- Websites banners 7 7%
g- Social networks campaigns 5 5%
h- Outdoor billboards 14 15%
i- Magazine ads. 16 17%
k- Any others 7 7%
Total 94 100%

Which of the following promotional modes is more

memorable for your favourite soft drinks brand? can tick
30% 24% more than one
25%
20% 15% 17%
15% 12%
10% 5% 6% 7% 5% 7%
5%
0%

5. Conclusion
This research is based on the assessment of the aspects of branding and their impact on

consumers purchasing behaviour in Canada. the findings from secondary data and the primary

data analyses show that the consumers in Canada have high rates of soft drink consumption and

they preferred to buy it on brand names and their slogans. Therefore branding must have a

positive impact on soft drink preference and purchases. The other trends identified from the

literature review are the important of brand elements, identity and positioning in segmenting,

targeting, and positioning right type of consumers. The researchers emphasized at proper

branding and promotion strategies can attract and retain the target consumers in long run.
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Therefore, giant companies like Coca Cola and Pepsi Co. investing millions of dollars in their

brands promotions. Also, the most suitable media recommended for these companies are TV

commercials, Billboards, and magazine ads.

The research question related to the factors affecting branding of soft drinks for Canadian

consumers are the product features, calories consciousness, brand names, slogans, promotional

media, and venues of brands availability. These factors can positively or negatively affects the

consumer perceptions, depends on their usage by marketers. Also, these soft during companies

are recommended that they should concentrate on calorie intakes, flavoured alternatives,

effective promotional campaigns, and new brands offering. The consumers are more aware and

using convenient channels to purchase these drinks. Therefore, their availability at ATM

machines should be assured as large majority use these machines for easy access. The

promotional campaigns need to highlight the versatile attributes of these soft drinks so that the

psychological impact of these brands enhance. The ultimate result achieve from all these

branding activities is the increase in brand equity.

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Kotler, P., Keller, K.L., Brandy, M., Goodman, M. & Hansen, T. 2009 Marketing Management.

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