An Investigation Into The Factors Affecting The Decline In

Pepsi Sales

Candidate's Name: Sahara Neil

Teacher's Name: Mrs Martin and Miss Griffiths

Subject: Principles Of Business and Accounts

School: St. Elizabeth Technical High School

Candidate's Number:

Center Number:

Date: 2022-2023
 Table Of Contents

Contents Pages

Topic/Issue/Problem……………………………………………………………1

Objectives……………………………………………………………………....2

Background/Overview………………………………………………………….3

Methodology……………………………………………………………………4

Presentation and Analysis of Data……………………………………….……..5

Conclusion………………………………………………………………………6

Recommendation…………………………………………….………………….7

Bibliography…………………………………………………………………….8
 Objectives

1. To identify the factors affecting the reduction of Pepsi sales.

2. To state the reasons behind the declining in the Sales of Pepsi.

3. To provide recommendations for the improvement of Pepsi sales.

A decline in sales lowers the business's profitability and the product's life span. This issue

could possibly lead to the company's insolvency. Intown Super Centre operates a

supermarket and it is located in Santa Cruz, St. Elizabeth. It was founded in May 1997 by

Oral Lloyd. The business that has been a retailer of the product Pepsi. In recent times

there has been a decline in the sales of Pepsi, it is seen as a very risky issue for the business

that needs to be resolved as quickly as possible since there is no guarantee as to what would

happen. As a result, now that Intown Super Centre has reflected the sales decline, it is

based on this reason why the researcher has decided to investigate the issue and put

recommendations in place in order to resolve the problem before it is too late. This will

help to assist consumers make more informed decisions and support the success of their

businesses, which results in the creation of jobs for people and useful products for

consumers. Also it will help in restoring business's image and status in the market
 Methodology

The decline in sales of Pepsi is still being researched. To investigate the problem the

researcher carried out qualitative research. In this investigation the method of data

collection used was questionnaires and interview questions; these techniques were chosen

since they were considerably simpler for the researcher and time-saving.

Questionnaire

A questionnaire is a research tool that consists of a list of questions to be used in a survey

or statistical analysis to gather information from respondents. The questionnaire was

chosen as a part of this research because questionnaires are simpler to organize, execute

and provide an inexpensive way of acquiring large amounts of information. The research

was conducted over a 2-day period. 30 questionnaires consisting of 10 close ended questions

were distributed to customers who showed an interest. The data from the survey was then

analyzed. The respondents were not asked for confidential information in these

questionnaires.

Interview

An interview was conducted with the manager of the business to learn more strategies used

in the company to increase sales. The interview was chosen as a research method because it

allows for a more personalized exchange of business-related information. The interview

was conducted on a day when the manager made himself available. Five (5) open ended

questions were posed to the manager in order to gather this information.

These questionnaires were given out by the researcher two days before they were returned

by the respondents. Only 25 of the 30 questionnaires that the researcher had printed were

returned. Customers who showed an interest were given these questionnaires as they

walked throughout the supermarket. The customers were also given a brief explanation by

the researcher about the questionnaires' aim.

Instruction: Answer the following questions honestly by placing

a tick inside the box provided.

1. Do you like Pespi?

● Yes, state why?

● No, state why?

2. How often do you purchase Pepsi

● Daily

● Once a week

● Once a month

● Not at all

3. Rate the pricing strategy of Pepsi at the Intown Super Centre

● Extremely low

● Low

● Moderate

● High

● Extremely high

4. How did you get to know about Pepsi?

● Family and friends

● Television advertisement

● Social media advertisement

5. What special offers do you think Intown Super Centre should create for its customers?

● Coupons

● Price packs

● Holiday Day Promotion

● Discounts

6. Are Pepsi sodas easily accessible on shelves?

● Yes, state why?

● No, state why?

7. Which of the following attributes compel you to purchase Pepsi?

● Availability of product

● Quality of product

● It eases the use of alcohol beverages

8. How often have you experienced that Pepsi sodas are out of stock?

● Always

● Sometimes

● Usually

● Never

9. What are the factors that influenced you to shop at Intown Super Centre rather than other

supermarkets?

● Product Quality

● Product Availability

● Food atmosphere at store

10. Which store did you go to buy the product Pepsi at a cheaper price than Intown Super

Centre?

● Whole sailors

● Retail stores

● Morrison's Supermarket

● Diamond Cash N' Carry Supermarket

Interview Questions

1. What are some ways to increase the sales of Pepsi

______________________________________________________________________________

2. How will the decrease in Pepsi sales affect the business?

______________________________________________________________________________

3. How will the increase in Pepsi sales affect the business?

______________________________________________________________________________

4. How can social media increase Pepsi sales?

______________________________________________________________________________

5. What are the reasons why there is a decline in Pepsi sales?

______________________________________________________________________________
 Presentation and Analysis of Data

In Figure. 1. The pie chart shows the frequency of how often customers purchase Pepsi. It can be

seen that 50% of the customers did not purchase Pepsi. Similarly, 20% once a week, 16% once a

month and 14% of the customers purchased Pepsi daily. This chart clearly shows that Intown

Super Centre had a very bad flow of customers on a daily basis.

In Figure. 2. The bar graph shows that 61% of customers know about Pepsi via family & friends,

17% through social media advertisement, 15% through television advertisement and 7%

looking at hoarding boards.. From this graph, one can conclude that family and friends has been

one of the effective means channels to get Pepsi advertised. On the contrary, it also shows that

Intown Super Centre is inactive in social media and television advertisements.

Super Centre

Pricing Strategy Percentage Amount

Extremely low 5%

Low 10%

Moderate 25%

Extremely high 40%

High 20%

The table above shows that 40% of customers are feeling that the price is extremely high, 25%

moderate, 20% high, 10% lower and 5% extremely lower. Taking the cumulative frequency of

this table, 60% of people perceived that the prices are expensive, which means the pricing

strategy is not good and people are feeling that the Pepsi soda's available at Intown Super Centre

are absolutely high in comparison to other stores.

proper location, whereas 37% of customers agreed that products are easily accessible on

the shelves. The majority of customers are facing problems during the shopping. The given data

shows, Intown Super Centre is lacking in proper placement of goods at the right place at

the right time, which not only leads to customer dissatisfaction, but it also lowers sales.
 Findings

Based on the information gathered it can be concluded that a decline in sales lowers the

business's profitability. Additionally it can be said that a decline in Pepsi sales have a

negative impact on the business.

Based on the findings it has been summed up that a decline in sales can affect the business

negatively. In this research it was revealed that 50% of customers do not purchase Pepsi on

a daily basis. Also it states that television advertisements have a positive impact on Pepsi

sales. Moreover, it can be seen that 61% of customers found out about Pepsi through

television advertisements, however this has not yielded an increase in sales. Furthermore,

sales promotions may improve sales as 42% of the respondents would purchase Pepsi due

to a 10 % discount offered.
 Recommendation

Based on the findings the researcher recommended that:

Pepsi soda's pricing at the Intown Super Centre should be lowered. This is because

respondents stated that the price of Pepsi sodas at the Intown Super Centre are higher

compared to other supermarkets. However, depending on the importance of the price

reduction on Pepsi soda's, the business will attract customers who are able to pay the

promotional price but not necessarily the full price.

Additionally, the researcher also recommends that the management of the Intown Super

Centre should provide a 10% discount off Pepsi soda's, as 42% of customers would

purchase Pepsi. This will help to increase sales by attracting new/more customers .

Lastly the researcher recommends that the management of the Intown Super Centre

should offer price packs to its customers. which will help to assist sales. However you not

only make it easier for customers to make a purchase but also give them more value for a

single purchase than if they were to buy individual products.