MKT203-MARKETING

RESEARCH PROPOSAL Abstract

This Marketing Research
Proposal consists of our
Marketing Research on the
Foods and beverage
Industry. The company
chosen was Coca-Cola
Amatil in Papua New
Guinea.

GROUP 6 - KUMUL
BBUS YEAR 2

ASSESSMENT 2- RESEARCH PROPOSAL

Group Name: KUMUL

Industry: Food and Beverage Industry

Research Product: Non-Alcoholic Beverages

Marketing Research Proposal

Overview of the Market Problem in PNG

Coca-Cola Amatil PNG has been a dominant force in the Food and Beverages industry in Papua New
Guinea. Despite having strong consumer demand and a large market share, this does not stop Coca
Cola Amatil PNG to increase its efficiency in demand and supply throughout the country .With
intensified competition between beverage companies (Paradise Foods and Beverages and Pacific
Industries) and development of private labels (Poro, Lulu, Wasa), the need to Standardize the
Quality of Products has been a major challenge in the Papua New Guinea Market. Coca-Cola Amatil’s
rivalries are coming up with new ways to dominate the market share by decreasing prices on their
beverages which is becoming a major threat to Coca-Cola’s market capacity. The biggest issue
affecting Coca-Cola Amatil is the Supply Chain Distribution Channel which the demand is over-
running the supply, volume growth stalled primarily due to an inability to supply. Internal process
issues across manufacturing efficiency, inventory accuracy, planning and logistics were preventing
growth and the supply chain had become a growth inhibitor. (Smith. W, Coca-Cola Amatil:
transforming the PNG supply chain, Pg. 4-5, 2020). Despite the challenges in a country such as PNG,
technology has had a significant part to play in the transformation. Two complementary systems
originally introduced in Indonesia were brought in, the Electronic Short Interval Control (ESIC), and
the Quality Information System (Quinsys). “ESIC is a home-grown production control system which
tracks line performance by the hour,” explains Robinson. “If we should have made 2000 cases, but
we only made 1000, it will report the issues behind that on an hourly basis and allow us to track and
address it.” Quinsys, meanwhile, is about auditing good manufacturing practice. “People can go
around the plant and put into the system any hazards or issues that they find. It gives us a really
good tool to manage our safety and quality.” Going live in January 2020 is a new ERP, Microsoft
Dynamics. Replacing existing legacy systems, Robinson is confident that “the new ERP system will
make sure that everybody is working off of the same plan. By putting in Microsoft Dynamics we’ll
give ourselves an ERP system that will enable us to integrate all our data onto one platform, manage
process compliance and sustainable change.” There are also a few technologies with region-specific
utility, particularly GPS trackers. “We essentially deliver everything in shipping containers, but after
delivery, we tended to lose track of them and end up paying detention bills to the shipping
companies,” says Robinson. “Now we’ve put trackers on all the containers so that we know whether
they have reached the destination, which also enables us to track them all the way back.” Another
initiative was based around transforming relations with suppliers from transactional relationships to
business partners. “Good examples of those improving supplier relationships are demonstrated by
key suppliers such as Orora (cans) and BOC (Carbon Dioxide), where we were able to move from

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regular supply issues, due to poor planning and communication, to value added relationships where
we are proactively working together to drive shared growth and cost efficiency through design
innovation and joint long term planning,” says Simon Robinson, Head Of Supply Chain PNG.

These is creating a market gap for Asian Counterfeit Products to enter the market that is being
dominated by Coca-Cola Amatil. Due to PNG’s inconsistency in banning counterfeit products in the
country, this has created an opening for Asian Opportunists to enter the market with low standard
products at very low prices which they see as a potential market gap for their counterfeit products in
the country. Government agencies such as the Customs Boarder Security, IRC (Internal Revenue
Commission), ICCC (Independent Consumer Competition Commission), are responsible for matters
relating to the Ban of Counterfeit Products in the Country.

Objectives of the Market Research

Brand Awareness - Labelmakers Group is the new label supplier, and brings innovative ecommerce
and design capabilities, such as digital printing, which Coca-Cola Amatil is looking to exploit for their
2020 consumer promotional programs and also promoting 100% PNG Owned which gives it its
reputation in the Papua New Guinea market. Due to counterfeit products flooding the PNG market
the Labelmakers Group have come up with unique ways to make the Coca-Cola Brand more
appealing from its competition.

Brand Image – The Coca-Cola brand image has been around PNG for 28 years and has been a Global
Ambassador for Non-Alcoholic beverages. The Brand image persuaded towards Papua New
Guineans has been the trademark logo that sponsors Sports events, Charities and Awareness
Campaigns, and Shows around the Country, These has brought the Coca-Cola brand perception to
the Papua New Guineans to another level.

Consumer perception – “IT’S HARD TO DESCRIBE HOW IMPORTANT THE COCA-COLA BRAND IS TO
THIS MARKET” says Simon Robinson, Head of Supply Chain. PNG, Coca-Cola Amatil.

(Smith. W, Coca-Cola Amatil: transforming the PNG supply chain, Pg. 14, 2020) www.ccamatil.com

The perception of the Coke Brand from the highlands to the islands of Papua New Guinea is the
reason why Coca-Cola Amatil has a wider market share in the region. It’s more than a brand, it’s a
cultural lifestyle that Papua New Guineans have adapted too.

Consumer Attributes – Coca-Cola Amatil is committed to ensuring that every Papua New Guineans
taste buds are satisfied with its beverage products. E.g. Papua New Guineans tend to like the Coca-
Cola with more Gas content and less sweet, whereas Fijians like the Coca-Cola to be sweeter with
less Gas in its liquid. Coca-Cola Amatil has a wide variety of the product mix with qualities and
quantities unique from each other to suit every ones needs for any occasion.

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Buyer Behaviour – For high class Papua New Guineans, buying locally owned products benefits the
country’s economy which empowers SME’s to develop innovative ideas to create wealth for the
country and its people. From their social psychological perspective they want to prove a statement
that PNG Owned products have a high quality and standard which no other products will define.
Middle Class Papua New Guineans tend to focus their expenditure on their fortnightly or monthly
salaries which is a major influence on their buying power. For low class Papua New Guineans, most
prefer the cheapest beverage which they don’t verify the content which is in the beverage, as long
as the product is cheap with content that is durable to each ones taste buds.

Product Satisfaction – Coca-Cola’s market share in Papua New Guinea clearly indicates how satisfied
the products are to its consumers. The market gap created by Coca-Cola in creating inevitable
change in technological improvements in the Non-Alcoholic Beverage Industry is determining the
future of its competitors in the country.

Customer Experience – CCA has been operating in PNG for 28 years with a Supply Chain network
consisting of two plants, five production lines, six distribution centres, 40 products and over 800
customers. Orora a proud partner of Coca-Cola Amatil, they specialise in designing, manufacturing
and distributing premium quality glass bottles and aluminium cans. “At Orora, we believe packaging
touches lives, together we deliver on the promise of what’s inside”. (Smith. W, Coca-Cola Amatil:
transforming the PNG supply chain, Pg. 16, 2020) www.ororagroup.com

Market Research Technique

The marketing work of Coca-Cola is so good and it has great advantage with the domestic beverage
enterprises. Besides, focus on the Coca-Cola in one of developing country’s development course,
analysis the environment of Coca-Cola marketing research, the macroscopic environment and
industrial environment of Coca-Cola. In the meantime, people must focus on the analysis of Coca-
Cola in local’s marketing concrete strategy.

Research plan

Some research (Lieberson, 1992) introduce that each time company employ a new worker, chief will
cultivate the new worker the primarily marketing work consciousness and habits. If their old
companies used to set down in the company and using telephone to do business the company do
not welcome this new worker.

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Marketing research

Product Positioning: Coca-Cola synthesizes the different opinion of different level human beings and
they find their beverage products belong to cool and refreshing type, the scale of suitable space and
time is big. It belongs to excited type and suitable for each age, every occupational group and
various social life occasions. People first want to buy the Coca-Cola is belongs to compulsive
purchase. If this left a good habit people will repeat purchase it. After deepen the brand, people
become selective, immobility and repeat purchase this product. Seasonal effect will not influence
entertainment, family, school and corporation too much.

Marketing survey

1. Walk into the community.

Branch Coca-Cola sales company or office is built, company will hire students or professional
investigation company to do investigation work, then the business representatives will take over this
work. The marketing office of Coca-Cola receives a large-scale map from many places, investigators
separately the commercial block by the density and their achievement deeply into communities.
They went to supermarkets, hotels, small stores, little hotels, even the school, authorities, hospitals,
stations and entertainments, they go to all possible places that can be sales Coca-Cola products and
point investigate object and survey results, mark the questionnaires records and submit this to
company.

2. Questionnaire Design.

Take a research that the contents of questionnaire design include name of point-of-scale, address,
scale, characteristic, number of visitors and marketing method, it also includes several sales methods
that includes several small projects. In order to reduce the people who cannot fit for the question
and workers cannot obtain information, the executor considers some loosen demands that the
name and related contents such as the phone number, quantity of sales.

3. Collect data.

First the company asks civil affairs or planning government department to help collect some large-
scale map as a basic reference implementation. Second some analysis that company must collect
some data about the density of some community and the incomes of each person from the
government statistics department before the questionnaire begin. It is valid 2 years for every survey
data. Besides, they also surf the Internet and to learn the local custom, lifestyle or the social factors
involved.

Market segmentation

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According to the point selling number, population density, purchasing power and other factors of
target market, the company calculates the potential largest market for each area, match this
potential target with occupied sales points and contrast the selling, make the market developing
tasks from general to all single point area. Each branch company must devices the responsibility and
assigns the resource. For example, one of branch Coca-Cola Company’s sales regional is limit in this
province. The company divides the province into two sales areas, east and west. And set a two
respectively center in each of sales areas. Each sales area is divided into 12 sales pieces and set up
the office. Each sales piece segment again until designate special persons to take charge one piece.
The executor decided all business units and the salesman prohibit across piece or area to sale.

Collect information

Qualitative research is an interdisciplinary, transdisciplinary, and sometimes counter disciplinary

field. It crosses the humanities and the social and physical sciences. Qualitative research is many
things at the same time. It is metaparadigm tic in focus. Its practitioners are sensitive to the value of
the multimethod approach. They are committed to the naturalistic perspective, and to the
interpretative understanding of human experience. At the same time, the field is inherently political
and shaped by multiple ethical and political positions. First the company takes a face to face strategy
and asks some detail question about the Coca-Cola. It collects some different question come from
different people. Second the company built a website online and many people can submit their
opinion about the taste, flavor, appear and other things about Coca-Cola.

Quantitative research is used to denote approaches which are supported by a set of hypotheses, it
resorts to applying the model of science of natural world to study the social world. From the above
analysis the company sets questionnaires, besides, the company can set self-administered
questionnaires that the company just asks several questions and the interviewer will write want they
want, it will make people think aloud. In addition, the company will combine this research and built
omnibus surveys and panels, many people will participate in the group and speak their opinion
about Coca-Cola. In the meantime, the company also employs local people as workers. Where their
network extends, their organizer chooses their employees. Their local business conditions include
blocks, shops, purchasing habits, it make sales work of Coca-Cola as quickly as possible walk into
local environment.

Through analysis, Secondary research is more often than not, proves to be a solid base on which to
develop your own primary research. It plays the same role as research in general dose to your
product launch, and should be seen as just as vital.

Primary research is the most accurate way to research a market sector that it specific to the
company and the company’s product. But it is more expensive, whether financially or on time. It also
takes time for the questionnaire to be completed if the company does not have direct access to a

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ready panel. So, neither type of research will take the company to their goal alone, however, a
combination of the two will give the company all the information they need.

However, it is possible that you can find some research somewhere that corresponds to what you
are trying to achieve but it will almost certainly require some tweaking, and will not necessarily be
the people you wish to interrogate, the use of qualitative research designed by someone else will
almost certainly make the target specialized away from your goals.

Research Marketing Technique Recommendation

Which type of research work is better?

Using primary research alone, without first seeing what has or has not worked for other companies
and possible missing out an important data from research that companies could not afford to
perform themselves, is likely to lead to irrelevant questions or missed opportunities. At the same
time, Patton (2002) said that relying solely on secondary research is likely to leave companies with
answers that are vague or inappropriate to their specific audience. The two compliments each other
well and when used in conjunction will give companies a well-rounded and accurate portrayal of the
needs and opinions of companies’ market sector.

Conclusion

Rising in their marketing research technique and practice, Coca Cola’s practice in new country’s
localization has proved the marketing must have characteristic of individualization and practicality.
As to Coca Cola, marketing is an actual combat tool which solves their market and competition
problems or issues. Coca Cola Manages an important branch studies in marketing theory, which have
already formed a serious of theory frameworks.

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References

 Pride, W., Ferrell, O., Lukas, B., Schembri, S., Niininen, O., & Casidy, R. (2017). Marketing
Technique principles (6th Asia-Pacific Ed.). South Melbourne, Vic: Cengage.

 Falkman, D. (2018, January 2). The marketing research life cycle. [Video File]. Retrieved from
https://www.lynda.com/Software-Development-tutorials/product-lifecycle/513586/582022-
4.html?org=think.edu.au

 Kotler, P., & Armstrong, G. (2014). Primary & Secondary Marketing Techniques with
Research (15th Ed). Boston: Pearson.

 Smith. W, (2020) Coca-Cola Amatil: transforming the PNG supply chain.

https://www.supplychaindigital.com/company/coca-cola-amatil-transforming-png-supply-
chain

 Sontakki, C.N. Marketing Research, Global Media, 2009. ProQuest Ebook Central,
http://ebookcentral.proquest.com/lib/think/detail.action?docID=3011289.

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