Understanding Market for Soft Drinks at SCU

Question: Discuss about the Understanding Market for Soft Drinks at SCU. Answer: Introduction This report summarizes all the analysis results associated with the students' soft drinks market at the SCU University. The purpose of this report is to explain both the sampling procedure, design and all corresponding data analysis techniques used to analyze the sample. This report is organized as follows. The introduction describes the development of the sampling procedure used and the implemented sampling strategy. Section A presents the proportion statistics that summarize the data associated with foreign and local students in the sample, the relationship between price and quantity consumed, popular and least popular drinks and the loyalty of students to their brand. Section B presents the analysis of the sampling effect on the demand, least favorite drinks and loyalty. Section C explains the possibility of the randomly selected student being an international or a local student and the test of significance level. The sample from the data was 100 students, selected by simple random sampling method. The procedure for selecting the sample included; selecting all the data from A3 TO Z554, sorted by random numbers, then the first 100 elements of the data are selected. Data Analysis The most appropriate analysis technique for this data is a multivariate analysis which will be used to understand whether there were differences in the perceptions of preferences and demand for beverages among the university students. Qualitative analysis will be used to explain the different relationships between the variables in the data such as the reasons for shifts in preferences and the effects of discounts on the sale of the beverages. Quantitative analysis will be used to assess situations, especially the market share, by using mathematical probabilities. Such conditions include the selection of students from either local or international category, the likelihood of the student consuming a drink and the demand changes. Sensitivity analysis will be used to assess the changes in market shift due to increase in discounts. It will determine how sensitive the result for changes in price is to demand and the effect on sales volume in the different beverages. The local students were 90% and the international students were 10% of the sample population. 18% of the population would change their choice of beverages to their second preference if the second preference were 25% cheaper than their most preferred beverage, whereas 82% would not. If the drink were 40% cheaper than the most preferred beverage, 21% would change to their second preferred drink 79% while would not. If the second preference were 60% cheaper than the most preferred beverage 36% would change to their second most preferred beverage while 64% would not change. Other (water, milk drinks, etc. are the most popular drinks compared to the rest, because they are the most consumed in a typical week. Whereas energy drinks are the least favorite beverages because they are the least consumed drinks in a typical week. Most of the students are loyal to their preferred drinks because only a small proportion of 18%, 21%, and 36% would shift to other drinks due to discounts in other drinks respectively. The behavior of local students vis--vis International Students The demand for local students is considerably higher in the lower prices as compared to that of the international students this can be determined by the correlations of the number of local students and the sales/ demand for the beverages. This is because the population of local students is higher compared to that of international students. The most popular drinks among local students are water and milk drinks while the least popular drinks among the local students are energy drinks and soft drinks, i.e., Coke/Pepsi. This is determined by the analysis of the sales against the demand by the local students which is considerably high. Fruit juice and milk drinks are the most popular among international students while Energy drinks are the least popular drinks for international students. Most of the students for both local and international categories prefer water and milk `drinks The international students are more loyal to their preferred drinks compared to local drink this is shown by the standard effect of discounts on the preference. Most international students never changed their preferences due to change in price levels. This study analysis indicated that the highest population that shifted to other drinks due to discounts was local students compared to international students. The discount attracted a slight percentage of students, and the market shares have no significant changes. Suppose, you randomly selected a student from BAC21 class The number of international students against local students from the sample is 10/100. Therefore the possibility of a local student is 90/100 = 0.9, and the possibility of the student being an international student will be 0.1. The average consumption of Pepsi/Coke I a week is 325 among all students. Therefore the likelihood of the selected student to be consuming this category of drink is 100/325 = 0.31 The significance level of Pepsi's claims The standard deviation of the sample mean is equal to 1.2/sqrt(100) = 0.12 = 0.25 + 0.12 / 0.25-0.12 = 0.37 or 0.13 According to these results, the assumed 25% share market demand by Pepsi is within the 95% confidence interval for the mean. Conclusion The sampling procedure and sampling technique used gave an equal opportunity for all the members of the population to participate in the research. The analysis of the data indicated that most of the students are local. Water and milk are the most preferred among the beverages sold in the University, and they have the highest market share. The lower the price of the drinks, the higher the demand and the discounts attract a minimal shift in the preference. The loyalty of the students to their preferences is high since any reduction in price through discounts does not trigger significance change in the market share. References Davis, C.S. 2002. Statistical Methods for the Analysis of Repeated Measurements. Springer-Verlag, New York, New York. Lohr, S.L. 1999. Sampling: Design and Analysis. Duxbury Press, Pacific Grove, CA. Schabenberger, O., and Gotway, C.A. 2005. Statistical Methods for Spatial Data Analysis. CRC Press, New York, New York. Warne, R. T. (2014). 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