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Plain Packaging on Energy Drinks

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Plain Packaging on Energy Drinks STOCKHOLM SCHOOL OF ECONOMICS Department of Marketing and Strategy Bachelor Thesis, Spring 2014 PLAIN PACKAGING ON ENERGY DRINKS A quantitative study examining the effects of generic packaging of energy drinks on consumer attitudes and perceptions Stockholm, May 2014 ABSTRACT: In today’s society, children and young adults are frequently the subjects of marketing attempts to promote products and brands, even those of documented risk to the consumers’ health. Marketers are aware of the importance of branding and product packaging, concepts linked to the products success, and thus, for the rapidly expanding market of energy drinks, packaging is used as a vehicle for brand communication. This thesis aims at applying the concept of plain packaging, generally associated to tobacco products, on energy drinks to examine whether it can be a mean to effectively reduce the attractiveness of the product, and as a result decrease consumption. A quantitative experiment was conducted through a survey with the purpose to examine what effect different degrees of plain packaging on energy drinks would have on the following variables of investigation: perceptions of product, attributes of typical user, expectations of taste, attitudes towards brand, and purchase intention. In conclusion, primary findings from the research imply that plain packaging does neither affect the customers’ attitudes and perceptions of product, typical user or taste, nor does it affect purchase intention negatively, but rather positively. One of the discussed reasons for this is the decreased differentiation between brands that plain packaging is a result of; a consequence not in favor for neither the customers nor brands. Supporting this, findings showed significant differences between brand attitudes in original can versions – differences that were gradually lost when packaging became plainer. Due to methodological and conceptual limitations of the research, it is proposed that further research is conducted on the subject to assess whether plain packaging is a suitable approach to monitor the consumption of energy drinks, or if there are other means for achieving this. KEY WORDS: Brand communication, Graphical components, Energy drinks, Packaging and design, Plain packaging THANK YOU, Patric Andersson, for excellent and dedicated support AUTHORS SUPERVISOR EXAMINATOR Ana Susic, 22104 Patric Andersson Jonas Colliander Nikki Seretis, 22089 TABLE OF CONTENTS 1. INTRODUCTION .................................................................... 1 1.1. Problem ......................................................................................................... 1 1.2. Purpose .......................................................................................................... 2 1.2.1 Research questions ....................................................................................... 2 1.3. Delimitations .................................................................................................. 2 1.4. Expected contributions ............................................................................... 3 1.5. Thesis structure .............................................................................................. 3 2. BACKGROUND ..................................................................... 4 2.1. The health debate ....................................................................................... 4 2.2 Energy drinks .................................................................................................. 4 2.2.1. The energy drink market in Sweden .......................................................... 5 2.2.2. Focus brands in study .................................................................................. 6 2.3 The tobacco industry .................................................................................... 8 2.3.1. Plain packaging ........................................................................................... 8 3. THEORY ............................................................................... 10 3.1. The power of brand ................................................................................... 10 3.1.1 Customer perceptions and preferences ................................................. 10 3.1.2. Brand loyalty ............................................................................................... 11 3.1.3. Brand equity ............................................................................................... 11 3.2. Packaging and design .............................................................................. 14 3.2.1. The increasing importance of packaging .............................................. 14 3.2.2. Packaging and positioning ...................................................................... 15 3.2.3. Packaging and social identification ....................................................... 15 3.2.4. Packaging and perceptions of taste ...................................................... 16 3.2.5. Plain packaging ......................................................................................... 16 3.3. Summary ...................................................................................................... 18 3.4. Hypotheses .................................................................................................. 19 4. METHODOLOGY ................................................................. 20 4.1. Design and structure of the study ............................................................ 20 4.1.1. Block structure ............................................................................................ 21 4.1.2. Scenario structure ...................................................................................... 22 4.1.3. Variables of investigation .......................................................................... 23 4.2. Pre-studies ................................................................................................... 24 4.2.1 Pre-study results ........................................................................................... 24 4.3. Collection of data ...................................................................................... 25 4.4. Quality of research ..................................................................................... 25 4.4.1. Reliability ..................................................................................................... 25 4.4.2. Validity ......................................................................................................... 26 5. RESULTS ............................................................................... 28 5.1. Summary of data ....................................................................................... 28 5.2. Findings ........................................................................................................ 29 5.2.1. Perceptions of product ............................................................................. 30 5.2.2. Perceived attributes of typical user ......................................................... 32 5.2.3. Expectations and perceptions of product taste .................................... 34 5.3.4. Attitudes towards brand ........................................................................... 36 5.3.5. Purchase intention ..................................................................................... 37 5.3.6. Other findings ............................................................................................. 38 5.3. Summary of findings ................................................................................... 38 6. DISCUSSION ........................................................................ 39 6.1. Effects on product perception, attributes of typical user and taste expectations ...................................................................................................... 39 6.2. Effects on brand attitude and purchase intention ................................ 43 6.3. General discussion ..................................................................................... 45 7. CONCLUSIONS ................................................................... 47 7.1. Limitations .................................................................................................... 47 7.2. Further research .......................................................................................... 48 7.3. Concluding remarks ................................................................................... 49 8. REFERENCES ........................................................................ 52 8.1. Literature ..................................................................................................... 52 8.2. Publications ................................................................................................. 52 8.3. Internet references ..................................................................................... 54 8.4. Personal communication .......................................................................... 56 APPENDIX 1 – Additional tables and figures ......................................................... 57 APPENDIX 2 – Pre-study results ............................................................................... 58 APPENDIX 3 – Main Survey ...................................................................................... 59 1. INTRODUCTION 1.1. Problem A fast
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