CHAPTER FOUR

PRESENTATION AND DISCUSSION OF FINDINGS

4.0 Introduction

The study looked at the factors affecting the demand for inputs of soft drinks industries. The findings from the study were presented and analyzed orderly based on the formulated study objectives. This was made possible with help of computer packages MS word and Excel where by tables, graphs and pie-charts were generated.

The chapter begins by presenting the biographic characteristics of respondents in terms of gender; age, education levels, department, position and period of work. The study there after discusses findings as per the formulated objectives of the study.

4.1 Background information of the respondents

Under the gender distribution of respondents, the study was delighted with both male and female respondents as shown in the table below;

Figure 4.1: Gender of Respondents

Source: Primary Data

According to figure 4.1 above, 51.67% majority of respondents were male while 48.33% were women. This implies that the organization is gender sensitive since all categories of people were employed by the organization.

Table 4.1: Age bracket of Respondents

Source: Primary Data

From the table above, (46.2%) were in the age bracket of 31-40 of the respondents who were 41 and above, (17.3%) were in the age bracket of 18-30years. From the study majority of the respondents were in the age group between 31-40 years. This can be explained to the fact that it’s mainly the adults in this bracket that are married.

Figure 4.2: Highest Level of education

Source: Primary Data

From figure 4.2 above, majority of respondents constituting 46.67% were diploma holders, 28.33% of them acquired 1^st degree and 25% of the respondents had acquired secondary level. This justifies that the organization recruits, maintains and retains high qualified human resource to fill the positions of the organization which implies that the selected sample had the capacity to avail the researcher with reliable and appropriate information on the topic under study.

Figure 4.3: Period of Work

Source: Primary Data

According to the figure 4.3 above, majority of the respondents (50%) had been in the organization for less than 2years while 40% of them had been in the organization from 2-5years and 10% of the respondents have stayed in the organization for 6-10years. This shows that the working experience for the categories of workers was enough to get conclusive results, since it’s assumed that by virtue of their positions, they know about the variables under study.

Table 4.2: Position in the organization

Source: primary Data

According to the table above, majority of the respondents (36.5%) were from the lower management, 30.8% of them were non managerial staff, 25% of the respondents were in middle management and only 7.7% of them were in top management. It is important to note that these respondents’ positions in the organization as it would highlight the information given depending on their positions.

4.2 Factors influencing the demand of inputs

The study sought to factors influencing the demand of inputs at Century bottling Co. Ltd. Results were obtained and are presented below;

Table 4.3: Factors influencing the demand of inputs

Source: Primary Data

According to table above, majority of the study respondents 32 (61.5%) agreed with profitability in the soft drink industry while 17 (32.7%) of them strongly agreed, 02 (3.8%) of the respondents were not sure, 01 (1.9%) of the study respondents disagreed and no respondent strongly disagreed. Since the majority of the respondents 49 (94.2%) were positive implies that profitability in Century bottling co. ltd has influenced demand for soft drinks.

Majority of respondents 24(46.2%) strongly agreed with prices of inputs, 14(26.9%) of them agreed, 8(15.4%) of the study respondents disagree, 5(9.6%) strongly disagree while 1(1.9%) of the respondents were not sure. However, most of the responses 38(73.1%) agreed implying that prices of inputs has to some extent influenced the demand for inputs in Century bottling co. ltd.

The table above also indicates with most respondents 19(36.5%) strongly agreed that new entrants in the industry, 12(23.1%) of the respondents agreed, 11(21.2%) of the respondents disagreed while 7(13.5%) strongly disagreed and only 03(5.8%) of the study respondents were not sure. This implies that since the majority 31(59.6%) agreed, new entrants in the industry has influenced demand for inputs of soft drinks in Century bottling co. ltd.

Also majority of respondents 13(25%) strongly agreed with brand name loyalty and 11(21.2%) agreed as compared to 11(21.2%) of them who strongly disagreed and 8(15.4%) of the respondents who disagreed while only 9(17.3%) of the respondents were not sure. Majority 24(46.2) agreed while 19(36.5%) opposed implying that brand name loyalty in Century bottling co. ltd has also influenced demand for inputs of soft drinks.

Furthermore, findings in table above indicate with most respondents 21(40.4%) strongly agreed that buyers demand for soft drinks and 01(1.9%) of them agreed as compared to 10(19.2%) of the respondents disagreed and 06(11.5%) of the study respondents strongly disagreed while 14(26.9%) of the respondents were not sure. This implies that at buyers demand for soft drinks has influenced demand for inputs of soft drinks since 22(42.3%) agreed.

Most respondents 36(69.2%) strongly agreed with market share and 9(17.3%) of the respondents agreed compare to those who concurred, 7(13.5%) of the respondents disagreed and no respondent strongly disagreed or were not sure. Since majority 45(86.5%) agreed implies that in most cases, market share has influenced demand for soft drinks at Century bottling co. ltd.

From results, 41(78.8%) strongly agreed with changing societal concerns, attitudes, and lifestyles and 5(9.6%) agreed as compared to 2(3.8%) of the respondents who disagreed and 1(1.9%) of them strongly disagreed and only 3(5.8%) of the respondents were not sure. Most responses 46(88.4%) of the respondents were positive implies that in Century bottling co. ltd, changing societal concerns, attitudes, and lifestyles have influenced demand for soft drinks.

Fewer respondents 4(7.7%) strongly disagreed with growing consumer preferences and 14(26.9%) of them disagreed compared to those who concurred 19(36.5%) strongly agreed and 11(21.2%) of them agreed while only 4(7.7%) were not sure implying that growing consumer preferences have influenced demand for inputs of soft drinks in Century bottling co. ltd as 30(57.7%) agreed.

According to table above, majority of the study respondents 27(51.9%) agreed with size of the organization and 14(26.9%) strongly agreed as compared to 6(11.5%) of the respondents who strongly disagreed and 5(9.6%) disagreed. This implies that size of the organization is another factor that has influenced demand for inputs in Century bottling co. ltd as shown by 41(78.8%) of the respondents).

Majority of respondents 20(34.5%) agreed with able to recognize consumer wants and needs, followed by 13(25%) of the respondents who strongly disagreed, 10(19.2%) disagreed while 07(13.5%) of the study respondents strongly agreed and only 2(3.8%) of the respondents were not sure implying that ability to recognize consumer wants and needs in Century bottling co. ltd has also influenced demand for inputs of soft drinks.

4.3 Challenges faced by Century Bottling co. ltd in acquiring inputs for soft drinks

The study sought to examine the challenges faced by Century Bottling co. ltd in acquiring inputs for soft drinks. Results were obtained and are presented below;

Table 4.4: Challenges faced by Century Bottling co. ltd in acquiring inputs for soft drinks

Source: Primary Data

From Table above, findings show that most respondents 28(53.8%) strongly agreed with higher taxation, 11(21.2%) of them agreed compared to 9(17.3%) who strongly disagreed and 4(7.7%) disagree while only no respondents were not sure. Majority 39(75%) agreed implying that high taxation on soft drinks has increased the general operational cost in Century bottling co. ltd.

Majority 31(59.6%) of the respondents strongly agreed with high ordering costs, 12(23.1%) of them agreed while 4(7.7%) of the respondents disagreed, 3(5.8%) of them strongly disagreed and only 1(1.9%) were not sure. Since majority 43(82.7%) agreed implies that in most cases, high ordering costs has been a major challenge faced by Century bottling co. ltd in their pursuit to acquire inputs for their soft drinks.

From results, 41(78.8%) strongly agreed with competition from other industries and 5(9.6%) agreed as compared to 2(3.8%) of the respondents who disagreed and 1(1.9%) of them strongly disagreed and only 3(5.8%) of the respondents were not sure. Most responses 46(88.4%) of the respondents were positive implies that in Century bottling co. ltd, competition from other industries have made it difficult for Century bottling co. ltd to acquire inputs of soft drinks.

Fewer respondents 4(7.7%) strongly disagreed with changing consumer preferences and 14(26.9%) of them disagreed compared to those who concurred 19(36.5%) strongly agreed and 11(21.2%) of them agreed while only 4(7.7%) were not sure implying that changing consumer preferences have caused problems for Century bottling co. ltd in relation to meeting the changing customer preferences as 30(57.7%) agreed.

Finally from the table 4.5 above, majority 49(94.2%) of the respondents strongly agreed with inflation and only 03(5.8%) of the study respondents agreed. However, no respondent strongly disagreed, disagreed or were not sure implying that in Century bottling co. ltd, as a result of inflation the organization has faced several difficulties in acquiring inputs for soft drinks as the prices keep on changing as 52(100%) agreed.

According to table above, majority of the study respondents 27(51.9%) agreed with high transport costs and 14(26.9%) strongly agreed as compared to 6(11.5%) of the respondents who strongly disagreed and 5(9.6%) disagreed. This implies that increasing transport costs have hindered the organization in acquiring inputs for soft drinks as the general operational costs increase.

Majority of respondents 20(34.5%) agreed with long delivery cycle times, followed by 13(25%) of the respondents who strongly disagreed, 10(19.2%) disagreed while 07(13.5%) of the study respondents strongly agreed and only 2(3.8%) of the respondents were not sure implying that in Century bottling co. ltd, sometimes the delivery cycle time are long which affects the production process.

Most respondents 30(57.6%) agreed with non availability of products followed by 11(21.2%) who strongly agreed and a significant percentage 11(21.2%) disagreed. However, few respondents opposed implying that sometimes the inputs are not available in the marketing.

Furthermore, findings in table above indicate that most respondents 43(82.7%) agreed increased customer complaints, 08(15.4%) agreed and only 1(1.9%) opposed while no respondents were not sure or strongly disagreed opposed. This implies that at Century bottling co ltd, faces a challenge of increased customer complaints.

Finally, majority of respondents 37(71.2%) of the respondents strongly agreed with labour required and 09(17.3%) of them agreed as compared to 3(5.8%) of the respondents who disagree and 1(1.9%) of them strongly agreed while 2(3.8%) of the respondents were not sure. Since the majority were positive implies that much labour is required in acquiring inputs of soft drinks thus, increasing the general operational costs of Century Bottling co. ltd.

4.4 Solutions to the challenges faced in acquiring inputs for soft drinks

The study sought to assess the solutions to the challenges faced in acquiring inputs for soft drinks. Results were obtained and are presented below;

Table 4.5: Solutions to the challenges faced in acquiring inputs for soft drinks

Source: Primary Data

According to table above, majority of the study respondents 27(51.9%) agreed with increasing manufacturing capacity and 14(26.9%) strongly agreed as compared to 6(11.5%) of the respondents who strongly disagreed and 5(9.6%) disagreed. This implies that increasing manufacturing capacity in Century Bottling co. ltd can help improve the production performance.

Majority of respondents 20(34.5%) agreed with increasing marketing and advertising, followed by 13(25%) of the respondents who strongly disagreed, 10(19.2%) disagreed while 07(13.5%) of the study respondents strongly agreed and only 2(3.8%) of the respondents were not sure. This implies that increasing marketing and advertising in Century Bottling co. ltd can help improve the market performance.

Most respondents 30(57.6%) agreed with increase the global market share followed by 11(21.2%) who strongly agreed and a significant percentage 11(21.2%) were not sure. However, no respondents opposed implying that increasing the global market share have improved reliability in Century Bottling co. ltd thus, improving organizational performance in the process.

Furthermore, findings in table above indicate that most respondents 43(82.7%) agreed with striving to obtain higher brand loyalty in all other brands, 08(15.4%) agreed and only 1(1.9%) opposed while no respondents were not sure or strongly disagreed opposed. This implies that at Century Bottling co. ltd, customer loyalty should be realized in all brands to improve the market performance of the organization.

Finally, majority of respondents 37(71.2%) of the respondents strongly agreed introduce more brands and 09(17.3%) of them agreed as compared to 3(5.8%) of the respondents who disagree and 1(1.9%) of them strongly agreed while 2(3.8%) of the respondents were not sure. Since the majority were positive implies that discovering new brands would widen the market base at Century Bottling co. ltd.

From Table above, findings show that most respondents 28(53.8%) strongly agreed with meet consumer demands, 11(21.2%) of them agreed compared to 9(17.3%) who strongly disagreed and 4(7.7%) disagree while only no respondents were not sure. Majority 39(75%) agreed implying that meeting customer demands would increase customer loyalty in Century Bottling co. ltd thus, it has improved operational performance.

Majority 31(59.6%) of the respondents strongly agreed with purchasing planning, 12(23.1%) of them agreed while 4(7.7%) of the respondents disagreed, 3(5.8%) of them strongly disagreed and only 1(1.9%) were not sure. Since majority 43(82.7%) agreed implies that in most cases, purchasing planning would meet customer demands at Century Bottling co. ltd.

From results, 41(78.8%) strongly agreed with forecast demand and 5(9.6%) agreed as compared to 2(3.8%) of the respondents who disagreed and 1(1.9%) of them strongly disagreed and only 3(5.8%) of the respondents were not sure. Most responses 46(88.4%) of the respondents were positive implies that in Century Bottling co. forecasting demand would ensure that future stock-outs are avoided.

Fewer respondents 4(7.7%) strongly disagreed with market survey for proper negotiations and 14(26.9%) of them disagreed compared to those who concurred 19(36.5%) strongly agreed and 11(21.2%) of them agreed while only 4(7.7%) were not sure implying that market survey for proper negotiations in Century Bottling co. ltd as 30(57.7%) agreed thus would lead to improved operational performance.

CHAPTER FIVE

CONCLUSION AND POLICY RECOMMENDATIONS

5.0 Introduction

This chapter presents a conclusion(s) drawn, recommendations, and areas for further research basing on study findings.

5.1 Conclusion

The life cycle of a simple soft drink involves a complex chain of players, systems, and strategies – often mysterious even to professionals observing or working in the industry. From production and distribution to advertising and sales, the soft drink industry’s operating model has evolved over the years and continues to adapt quickly as economic, social, and political forces shift. This report has taken a closer look at the factors influencing demand for inputs involved in producing soft drinks, some of the challenges now facing the industry and strategies to the challenges involved in acquiring inputs for soft drinks.

The major factors influencing demand for inputs include; market share, changing societal concerns, attitudes, and lifestyles, prices of inputs, buyers demand for soft drinks and profitability in the soft drink industry.

According to the study, the major challenges facing Century bottling company in acquiring inputs for soft drinks include; competition from other industries, increased customer complaints, inflation, high ordering costs, non availability of products and high transport costs.

Therefore, the study suggested that Century bottling Co. Ltd should forecast demand, strive to obtain higher brand loyalty in all other brands, purchasing planning, introduce more brands, meet consumer demands, increase the global market share and increase their marketing and advertising.

5.2 Recommendations

Looking towards the future, the most important recommendation to Century bottling co. ltd is continuing product innovation and expansion of their product line. The soft-drinks industry is fully saturated with competitors. Also, the industry is no longer expanding, and market share is actually decreasing as more consumers are looking to healthier options. By continually introducing new products, Century bottling co. ltd will be able to increase their profits and allow the company to continue to grow. Also, having a diverse product line will make the corporation very stable, which is appealing to investors and creditors.

A second recommendation would be to sustain or increase the global market share. Century bottling co. ltd is very well-established globally, and is the global soft-drinks leader. This is very important to sustain because it is the source of the majority of their profits. If they lose global market share, their profits will decline dramatically.

A final recommendation for Century bottling co. ltd is to maintain and try to increase their brand loyalty. Diet Coke has the second highest brand loyalty of all the soft-drink competitors’ brands, and solid advertising campaigns will help maintain the brand loyalty. They can also strive to obtain higher brand loyalty in all other brands, not solely Diet Coke. The brand loyalty is important because it will allow Century bottling co. ltd to sustain profits and maintain their market share.

5.3 Areas for future studies

• The study recommends that further studies should be carried out on;
• The effect of competitors on market share
• The effect of increased customer complaints on market performance

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